James Emejo writes on the need to strengthen regulatory and enforcement mechanisms to plug tax leakages

Illicit Financial Flows (IFFs) pose a significant danger to Nigeria and the broader African continent,  undermining economic development, fueling instability, and hindering progress towards sustainable development goals. 

IFFs, which include money gained illegally or transferred and used illicitly, deprive countries, particularly Nigeria,  of vital resources, weaken governance, and exacerbate social and economic inequalities. 

Nigeria is currently confronted by significant challenges related to IFFs, including corruption, tax evasion, and illegal exploitation of natural resources. These flows significantly impact the country’s ability to address poverty, improve infrastructure, and achieve sustainable development – and greatly impacted on the amount of revenues declared for any fiscal period.

The development has continued to present major concerns to the federal government, especially the apex revenue agency in recent times.

Executive Chairman, Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, said IFFs remained one of the most critical challenges facing the economy, calling for urgent measures to safeguard national resources, and build a resilient, equitable future.

Speaking at the opening of the national conference on Illicit Financial Flows (IFFs) with the theme, “Combating Illicit Financial Flows: Strengthening Nigeria’s Domestic Resource Mobilisation” in Abuja, Adedejireaffirmed FIRS’ unwavering commitment to lead with purpose and remain a convening force for collaboration, and a vigilant steward of the country’s fiscal sovereignty.

He lamented that illicit financial flows through tax evasion, profit shifting, money laundering, and trade mis-invoicing.

He said these do not merely represent financial wrongdoing but constitute structural drain on the economy, depriving government the resources needed for inclusive development.

According to him, the scale of these outflows, especially through aggressive tax avoidance by multinationals exploiting opaque global arrangements, continued to threaten the country’s fiscal stability.

Adedeji said, “Each unaccounted dollar undermines governance, erodes trust, and translates into lost infrastructure, inadequate public services, and deepening inequality.

“Like many other resource-constrained nations, we lose billions annually through these illicit conduits—making this conference not just a policy dialogue, but a national imperative.

The FIRS chairman, however, declared that under President Bola Tinubu’s Renewed Hope agenda, “we have entered a new era of fiscal reform”.

Specifically, he pointed out that the current tax reforms efforts signaled the present administration’s strong commitment to overhauling the tax system, modernise the legal framework, and institutionalise transparency in revenue collection.

“At the Federal Inland Revenue Service, we are responding with a deliberate, multidimensional strategy. First, we are championing voluntary compliance by promoting taxpayer education and simplifying systems. Our goal is to foster a culture where compliance is driven by trust, not fear.”

Countering IFF

According to the FIRS boss, responding to the menace of IFF required an agile, intelligence-led, and globally coordinated to achieve positive results.

He said at FIRS, “We are harnessing technology and intelligence. We have launched an ambitious digital transformation programme, including the establishment of a tax intelligence and automation department. With real-time analytics, integrated third-party data, and anomaly detection, we are building a tax system that is proactive, smart, and secure. 

“This is not just about digital infrastructure but digital vigilance. We recognise that combating IFFs demands collective action. As the designated coordinating agency under the Proceeds of Crime Act (2022), FIRS has established the Proceeds of Crime Management and Illicit Financial Flows Coordination Directorate. 

“This unit is leading implementation efforts, supporting asset recovery, and coordinating with law enforcement, the judiciary, private sector actors, and international development partners.

“We are also reviewing Nigeria’s Double Taxation Agreements (DTAs), some of which-due to outdated clauses-may inadvertently enable profit shifting.”

Adedeji said, “I have personally initiated renegotiations with several jurisdictions to align our treaties with present economic realities and to close loopholes that facilitate capital flight.

“Let me be clear: criminal networks adapt quickly. Whether through secrecy jurisdictions, the manipulation of beneficial ownership, or digital innovations, illicit actors continue to outpace traditional enforcement. Our response must therefore be agile, intelligence-led, and globally coordinated.

“This conference must go beyond dialogue. It must yield concrete action-real-time data exchange across institutions, robust enforcement mechanisms, and strengthened accountability frameworks. Only through unified effort can we plug the gaps that enable IFFs and reclaim the fiscal space necessary for national development.

“The time for incremental steps is over. Let this conference mark a decisive shift in Nigeria’s stance against illicit flows a moment where we stood together to defend the integrity of our tax system and the promise of shared prosperity.As Executive Chairman of FIRS, I reaffirm our unwavering commitment. We will continue to lead with purpose serving as a catalyst for reform, a convening force for collaboration, and a vigilant steward of Nigeria’s fiscal sovereignty.”

Financial cost to economy

Also, addressing the participants at the conference, Minister of State for Finance, Dr. Doris Uzoka-Anite, disclosed that Nigeria loses about $15 billion annually to profit-shifting and adverse tax avoidance practices, particularly perpetrated by some multinational corporations transacting in the country.

Profit shifting is when multinational companies reduce their tax burden by moving the location of their profits from high-tax countries to low-tax jurisdictions and tax havens. The minister said huge sums of money are moved out of the country, robbing the country of resources that could be used to finance the much-needed public services.

According to her, these adverse tax transactions had resulted in fewer hospitals, schools, roads, and bridges, and police officers on the streets as well as undermined jobs creation and poverty eradication, adding that the country, under President Bola Tinubu, was undergoing strategic fiscal reforms aimed at building a resilient, self-reliant economy driven by revenue and not by debt or by grants.

Uzoka stressed that IFFs remained a critical issue and one of the most urgent challenges currently facing the country, and continues to undermine the country’s development efforts as well as undermine economic sovereignty, highlighting the need to protect and retain wealth generated within borders, he said illicit financial flows are the “in-between pipes of our national wealth”.

Uzoka-Anite said, “They undermine revenue generation, erode tax bases, promote corruption, and reduce the resources available for critical investments in health, education, infrastructure, and social protection.

“This gathering reflects a growing recognition that illicit financial flows are not just a technical problem, they are a political problem, a developmental problem, and a national security concern.

“Illicit financial flows is a hydra-headed monster about to be evacuated and it takes various forms, from terrorist financing to corporate tax evasions. And since we are here at an event organized by the tax plan, we will focus our efforts and our attention on conversations around tax avoidance and tax evasion.”

The minister further noted that Nigeria had heavily relied on oil revenue which had been volatile and unsustainable, adding that the current reforms recognised the urgent need to diversify the revenue base, shifting focus on oil and non-oil resources, particularly tax revenue.

She added that by strengthening tax systems, the government seeks to create a more inclusive and accountable fiscal framework, one capable of funding national development, reducing debt dependency, and ensuring that all sectors contribute their inclination to it.

Also, addressing the august gathering, Member of Mbeki High Level Panel on Illicit Financial Flows, Hon. Irene Ovonji-Odida, said the global economic system played a core role in the ‘underdevelopment’ of Africa via governance of its pillars that included trade, debt, banking, finance, taxation among others.

According to her, billions are lost to trade mispricing from 2001-2010, stating that organised crime drove 30 per cent of IFFs while 5 per cent from official government bribery.

Citing a UN report, she said, “IFFs undermined development, security, and governance and public expenditure in critical sectors such as education, health, and natural resources.

“The power dynamics and confluence of vested interests between global corporations, states, professional enablers, and organized criminals make IFFs a complex, highly technical, and political phenomenon.   

“Unlike the approach of western-led global institutions which emphasize organized crime and corruption aspects of IFFs, the Mbeki Panel and AU broke new ground in its broad framing of IFFs, including activities that without necessarily being illegal subvert the intent of the law, or exploit legal loopholes and mis-alignment between national tax laws of different countries, to aggressively minimise tax liability and prevent fair taxes from being paid to jurisdictions where profits are made.”

Ovonji-Odida stated that recent international tax reform efforts aimed to correct historical imbalances rooted in colonial and post-colonial structures.

She said the UN Tax Framework Convention supported by developing countries would signify a shift towards rebalancing global economic governance.

According to her, the abuse or use of loopholes and weak global frameworks in the global tax system by rich governments, MNCs and HNWIs is facilitated by globalisation and digitalization of the economy.

She said the nature of IFFs, with vested interests and technicalities, are highly secretive and difficult to track, particularly when involving complex transactions and intra-group trade within global conglomerates.

She said, “These initiatives have significant implications for domestic tax processes and national development.  Africa needs to strengthen its strategic engagement in this process.

“What is at stake is for Africa and the Global South in general, is fair allocation of taxing rights to increase DRM for investment in public goods in an unfair international tax system that entrenches asymmetries between advanced economies MNCs and the ultra-wealthy on the one hand, and developing economies, domestic enterprises and ordinary citizens on the other.”

Collaborative action to curb outflows

According to Ovonji-Odida, strengthening capacity and coordination of Africa will help to address illicit financial flows.

She noted that as a net loser in the current global economic system in general, and IFFs in particular, African governments should prioritise and invest in national capacity to end IFFs and build an effective mechanism to coordinate efforts at the AUC, linked to New York and the capitals.

She said, “To establish global coherence of what has been agreed by Africa  Africa needs to continue to develop its common negotiating position on global tax reform and through south-south cooperation, build a global south position, in the UN negotiations process. 

“This involves the African Group in New York, finance/ tax and foreign affairs departments at capitals, and the broader civil society/ researchers to match the power of the western governments. PTLAC may provide a model to build African and interregional mechanisms.  

“How can Africa use the AU membership since 2024 of the G20 and South Africa’s incoming presidency better?  3) To develop the global mechanism which will ensure complete adherence to the implementation of these agreements.”

She added, “The outcomes of the negotiations on the Tax Framework Convention will shape global governance of taxation, perhaps for the next 100 years. This process is a once in a century opportunity for Africa and the Global South to finally have fair, inclusive allocation of taxing rights, with implications for our ability to finance our development agenda. We should not waste this opportunity and consider how to harness developments within BRICS+ in the new global political-economy.”

•Commodity risks rejections in�� EU markets��

•Oduwole: It’s both formidable challenge and transformative opportunity for our country

James Emejo in Abuja

The federal government and stakeholders in the cocoa value chain, yesterday met to assess the progress so far made towards complying with the European Union Deforestation Regulation (EUDR) on sustainability.

The EU, which accounts for over 60 per cent of Nigerian cocoa exports had set the  December 31, 2020 deadline (later extended to December 2025) for Nigerian cocoa farmers to comply with the regulation which bordered on sustainable cocoa trade under the EUDR Compliance framework.

The deadline applies to the broader EUDR, which includes cocoa and other commodities, and was extended from an earlier date to allow for more preparation time.

Failure to comply could lead to rejection of Nigerian cocoa exports to Europe, among other punitive measures.

However, speaking at the Nigeria-EU Cocoa Roundtable on EUDR Compliance in Abuja, Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, described the development as both a “formidable challenge and a transformative opportunity” for the country.

She said the regulation was a  call to action as it remained a “pivotal moment for Nigeria’s cocoa industry”.

Oduwole said the roundtable was more than a high-level dialogue but a “platform to align national ambition with global standards, as well as a crucial step in ensuring the resilience, sustainability, and competitiveness of our cocoa value chain”.

The minister pointed out that the the EU deforestation regulation was reshaping the way agricultural commodities are traded globally.

She said, “But beyond that, Nigeria and this administration is at the forefront of climate change and climate justice, and what is important to is the use of our land for sustainability.

“So, without even an external project, this is something that is Nigeria first. As Mr. President has put it, always Nigeria first in this issue. We’re thinking first and then joining the rest of the world to see how we’re using our resources for the betterment of everybody.

“So, for Nigeria, Africa’s fourth largest cocoa exporter, it’s both a formidable challenge and a transformative opportunity.

“With the EU accounting for over 60 per cent of our cocoa exports, compliance is not optional. It is an economic, environmental, and developmental imperative. And importantly, we have to support our domestic farmers and investors who are in this space.”

Also, Senior Special Assistant to the President on Agribusiness and Productivity Enhancement, Dr. Kingsley Uzoma, said the commodity remained a cornerstone of the country’s economic diversification agenda.

Yet, he said financing constraints remained a key challenge, with funding gaps limiting production growth, quality improvement, and compliance readiness.

He said cocoa represented a strategic non-oil export that fuels the country’s transition from petroleum dependency, adding that the cash crop exports recorded a 606 per cent increase in the last quarter of 2024.

Nigeria’ cocoa exports rose from about N171 in the last quarter of 2023 to N1.2 trillion,  reflecting not only global demand but the resilience and potential of the country’s agricultural sector.

Uzoma said, “Cocoa is no longer just a commodity; it is a strategic lever in our economic transformation. This positions cocoa as a vital contributor, accounting for roughly 29 per cent of our total agricultural exports and 5.6 per cent of non-oil exports overall.”

He said the federal government remained committed to agricultural sustainability, value addition, and global trade standards.

He said the administration of  President Bola Tinubu’s Renewed Hope agenda was creating an enabling environment that catalyses public-private partnerships, empowering communities, and driving a greener, and more prosperous Nigeria.

Uzoma noted that at the heart of the discussion was the EUDR, which prohibits the import of cocoa and other commodities linked to deforestation after December 2020.

However, the EU had provided a deadline extension to help countries like Nigeria adapt to the new regulations.

He explained that the new regulation required traceability, due diligence, and proof of deforestation-free supply chains, reinforcing environmental stewardship.

According to him, EUDR aligns with Nigeria’s green economy agenda, advancing its goals to combat climate change, preserve biodiversity, and build resilient agricultural systems.

It also drives innovation in traceability technologies such as blockchain and satellite mapping, while enabling stronger farmer support programmes that promote sustainable practices and higher yields without encroaching on forests.

The presidential adviser pointed out that Nigeria’s cocoa production supports over 300,000 smallholder farmers, who produce approximately 80 per cent of the country’s output and contribute about six per cent to the global supply.

In the 2023/2024 season, Africa produced 3.151 million metric tons of cocoa, with Nigeria accounting for 320,000 tonnes and aiming to increase production to 500,000 tons by 2025 through targeted interventions.

He said the figures not only underscored the scale of opportunity but also the urgency to explore and invest in cocoa production in the country.

Nevertheless, Uzoma said, “We must also confront the realities. While progress has been made, more needs to be done to fully establish effective compliance mechanisms.

“This underscores the importance of the extensive engagements held since December 2024 to align stakeholders and chart a clear path forward.

“Financing constraints remain a key challenge, with funding gaps limiting production growth, quality improvement, and compliance readiness.

“The Nigerian Agricultural Development Fund (NADF), though well-intentioned, is under significant budgetary strain. It is therefore important to note the potential value of innovative financing options, such as a dedicated cocoa sector credit line with flexible repayment terms, to provide timely and adequate support.”

According yo him, EUDR compliance presents  transformative opportunities for Nigeria’s cocoa industry.

He said by “prioritising local processing, we can create jobs, retain more value within our borders, and shift from raw exports to high-value products such as chocolate, beverages, and cocoa butter.

“Revitalising aging plantations could deliver up to 50 per cent higher yields, reduce pressure on forests, and equip farmers with climate-smart practices.

“These advancements also position Nigeria to tap into climate finance and carbon credit schemes, potentially attracting significant international funding for eco-friendly initiatives, while engaging our youth in agribusiness as part of an inclusive growth strategy.

“To fully realise this vision, we are exploring options for effective partnerships to deploy digital compliance tools, farmer mapping systems, and traceability infrastructure that empower smallholders.

“We also welcome greater participation from private investors in the development of cocoa processing zones, where innovation and opportunity will combine to build sustainable, competitive supply chains.”

Uzoma said, “With our rich heritage in cocoa, producing an average of nearly 320,000 tons annually over the past decades, and a clear policy roadmap, we are poised to lead in sustainable agribusiness.

“Let us forge a new era of strategic partnership where Nigerian cocoa becomes a global symbol of sustainability, innovation, and shared prosperity.

“Together, we can build a deforestation-free future that uplifts farmers, protects forests, and strengthens trade ties across continents.”

Essentially, the EUDR aimed at ensuring that products placed on the EU market are deforestation-free.

To comply, Nigerian cocoa farmers need to implement robust traceability systems and due diligence procedures to prove their cocoa is deforestation-free, including measures to track the origin of their cocoa beans and verify that the land used for production was not recently deforested.

The onus is on stakeholders to utilise the time effectively to build the necessary systems and infrastructure to meet the requirements.

Chairman, National Taskforce on EUDR Compliance, Mr. Ajayi Olutobaba, however, said most exporters are already 60 per cent compliant to EUDR, adding that the challenge lies with legality/land use component which resides with state governments.

He said, “The European Union Deforestation Regulation (EUDR) presents both a significant challenge and a unique opportunity for Nigeria’s cocoa and agricultural sector.

“To remain competitive in the global market, we must act swiftly and decisively. Alignment across ministries, state governments, private sector actors, and international partners is not just important, it is essential.

“Sustainability is no longer optional,  it is the future of trade. With unified action and a clear national framework, Nigeria can lead the way in sustainable cocoa production and secure its place in global supply chains.”

•Only five states attracted investments as FCT displaces Lagos

James Emejoin Abuja

The country’s total capital importation stock increased by 10.86 per cent to $5.64 billion in the first quarter of the year (Q1 2025) compared to $5.08 billion in the preceding quarter, the National Bureau of Statistics (NBS) said yesterday.

Capital importation also recorded 67.12 per cent increase when compared to $3.37 billion in Q1 2024.

According to the Capital Importation report for the period under review, portfolio investment accounted for 92.25 per cent or $5.20 billion 4.61 million, followed by Other Investment class with 5.52 per cent or $311.17 million.

Foreign Direct Investment (FDI) recorded the least with inflows, contributing 2.24 per cent or $126.29 million of total capital importation.

The United Kingdom (UK) topped the capital importation chart with $3.68 billion, representing 65.26 per cent of the total liquidity inflows go the period.

This was followed by the Republic of South Africa with $501.29 million (8.88 per cent) and Mauritius with $394.51 million (6.99 per cent).

According to the NBS, only five states of the federation recorded capital inflows for the quarter under review.

The Federal Capital Territory (FCT) Abuja remained the top destination for foreign capital , accounting for $3.04 billion (54.11 per cent) of the total importation.

Lagos followed with $2.56 billion (45.44 per cent), and Ogun with $7.95 million (0.14 per cent).

Others were Oyo and Kaduna with $7.81 million and $4.06 million respectively.

According to the statistical agency, the banking sector recorded the highest inflow with $3.12 billion, representing 55.44 per cent of total capital imported in Q1.

This was followed by the financing sector, valued $2.09 billion (37.18 per cent), and production/manufacturing sector with $129.92 million (2.30 per cent).

Standard Chartered Bank Nigeria Limited received the highest capital importation with $2.10 billion (37.29 per cent), followed by Stanbic IBTC Bank Plc with $1.39 billion (24.78 per cent) and Citibank Nigeria Limited $1.05 billion (18.66 per cent).

James Emejo in Abuja and Dike Onwuamaeze in Lagos

Minister of Industry Trade and Investment, Jumoke Oduwole, yesterday directed the Financial Reporting Council of Nigeria (FRCN) to apply an interim cap on annual dues payable by private sector Public Interest Entities (PIEs) at N25 million.

The move will also aligned the dues with the cap already in place for publicly listed entities under the the Financial Reporting Council (FRC) (Amendment) Act 2023.

In a statement, the minister stated that the directive will ��create a stable environment for compliance for affected companies in the short term.
This, she said, further reflected the ministry’s commitment to prioritising transparency, investor confidence, and regulatory equity while allowing the Ministry of Justice to appropriately determine the longer-term path for seeking legislative amendments on behalf of the federal government, if required.

In arriving at the directive, Oduwole explained that ��on March 2025, the ministry had convened a high-level stakeholder engagement in response to the Financial Reporting Council (FRC) (Amendment) Act 2023.

The initiative was prompted by growing concerns regarding the provisions and implementation of annual dues for Public Interest Entities (PIEs).
She noted tha as early as December 2024, leading stakeholders-including the Oil Producers Trade Section (OPTS), the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Nigeria Employers’ Consultative Association (NECA)-had expressed reservations through direct consultations and public advocacy over the section of the legislation.

According to the minister, a key issue raised was the reclassification of large private companies as PIEs, which imposed a disproportionate financial burden.
Under the amended Act, such companies are required to remit annual dues ranging from 0.02 per cent to 0.05 per cent of turnover, with no upper limit-compared to a fixed N25 million levy for publicly quoted companies, regardless of their size or market capitalisation.

However, the minister pointed out that while the FRCN continues to play a central role in setting and enforcing accounting and financial reporting standards, stakeholders observed that these provisions could lead to unintended unsustainable increased compliance costs, and ultimately negatively affect investor confidence.

She said the administration of President Bola Tinubu remained firmly committed to adopting a listening posture and pro-business approach, as articulated in its policy thrust in implementing the 8-Point Agenda.

Nonetheless, Oduwole said, “In response, on March 26, 2025, the ministry held a formal public stakeholder consultation to assess the policy implications and ensure alignment with principles of fairness, transparency, and economic competitiveness.

“The consultation resulted in two key actions: a temporary administrative pause on implementation; and the establishment of a Technical Working Group to provide deeper analysis.

“In line with this commitment, the Technical Working Group coordinated by the Ministry, comprising NECA, MAN, ALTON, NACCIMA, PFPTRC, CAC, and SEC, along with a robust team from the FRCN, met six times over a three-week period for stakeholder consultations.

“These engagements culminated in a report assessing the implications of Section 33D of the FRC (Amendment) Act 2023 submitted to the Honourable Minister on April 17, 2025”.

Continuing, she said, “The Honorable Minister of industry trade and investment provided a detailed briefing to Mr. President on the critical concerns raised by organised private sector stakeholders prior to the implementation of the administrative pause and made recommendations based on the submitted report and affirms that the administrative pause will be maintained in the mid- to long-term, pending a broader legislative review.”

*Commits to grow assets to $250bn in 10 years from $42.7bn

James Emejo in Abuja

The shareholders of African Export-Import Bank (Afreximbank) yesterday appointed Dr. George Elombi as the next President and Chairman of the Board of Directors of the continental financial institution.

He becomes the fourth president to lead the bank since its establishment in 1993.

His appointment was formally announced after the Annual General Meeting (AGM) of the bank’s shareholders.

The announcement was one of the key decisions of the 32nd Afreximbank group’s annual meetings and associated events held in Abuja.
Elombi immediately accepted the shareholders’ challenge as expressed by his predecessor to make the institution a $250billion bank in 10 years.
Afreximbank’s total off-balance sheet assets stood at $42.7billion as at first quarter of 2025.

In his acceptance speech, Elombi expressed a deep commitment to the bank’s mission and future.

He also pledged to build on the achievements of his predecessor by “seeking to do a little more than you did”.
He committed to fund infrastructure and support export processing zones among others.

He said: “I have worked alongside remarkable colleagues and extraordinary leaders to help shape this institution’s vision, its mandate as well as its growth. ��
“As we look to the future, I see Afreximbank as a force for industrialising Africa and for re-gaining the dignity of Africans wherever they are.�� I will work to preserve this important asset.”

However, addressing journalists during the post-event briefing, Oramah said shareholders approved the $350 million dividend declarations as proposed by the board, of which $50 million would be a donation made towards the establishment of the concessional finance window they approved in 2023.

They also approved an additional donation of about $700million for the concessional finance window, payable over a couple of years.

According to him, the meeting provided an opportunity for the shareholders, particularly class-A shareholders, who are signatories to the agreement establishing the bank, to reaffirm absolute commitment to meeting the obligations they willingly assumed under the treaty establishing Afreximbank.

Meanwhile, Elombi, a Cameroonian, succeeds Prof. Benedict Oramah, who has served as President and Chairman of the Board of Directors since 2015, and who will be stepping down in September 2025.

Elombi has been with Afreximbank since 1996, joining as a legal officer.

He rose through the ranks to become Executive Vice President, Governance, Legal and Corporate Services.

Over his nearly three decades at the bank, he has served as Director and Executive Secretary (2010–2015); Deputy Director, Legal Services / Executive Secretary (2008–2010); Chief Legal Officer (2003–2008); and Senior Legal Officer (2001–2003).

��
Prior to joining Afreximbank, he taught law at the University of Hull, United Kingdom.

Elombi played a pivotal role in establishing Afreximbank group’s structure, including the formation of key subsidiaries that have expanded the Bank’s capacity to deliver on its mandate.

Elombi holds a Master of Laws (LL.M.) from the London School of Economics, University of London, and a Ph.D. in commercial arbitration from the same university.

He obtained a ‘Maitrise-en-Droit’ from the University of Yaoundé in 1989.

In this piece, James Emejo examines the remarkable achievements recorded by the Special Duties Department of the Federal Ministry of Budget and Economic Planning (FMBEP) under Senator Abubakar Bagudu’s watch – feats that have continued to propel the nation’s economic trajectory

Budgeting and economic planning are crucial for the  country’s development and stability, serving as blueprints for managing national resources, guiding economic growth, and addressing the needs of citizens. 

In recent past, Nigeria’s developmental challenges, especially around resource allocation, have persisted for decades, mainly rooted in structural, governance, and policy-related issues.

In fact, economic management management was marked by 

poor resource allocation and budgeting and misalignment of budget which often prioritises recurrent expenditure (salaries, overheads) over capital investment (infrastructure, education, health).

It was further characterised by low budget implementation rate as approved budgets are often not fully implemented due to revenue shortfalls, delays, or inefficiency.

Besides political influence, economic planning and budgeting was also hampered by the fact that about 85 per cent of the country’s export earnings and 50 per cent–60 per cent of government revenue came from oil – making it vulnerable to global oil price shocks, leaving key sectors like agriculture and manufacturing underfunded.

A New Era

However, the remarkable achievements by the Special Duties Department of the Federal Ministry of Budget and Economic Planning (FMBEP) between between September 2023 and May 2025, remains a  testament to the visionary and strategic political leadership of the Minister of Budget and Economic Planning, Senator Abubakar Bagudu.

His ministry plays a critical role in national development by overseeing budget preparation, economic planning, and monitoring implementation.

The mandate also includes among other things, coordination of the Medium-Term Expenditure Framework (MTEF) to guide budget projections, and ensures alignment of the budget with national development priorities.

It develops national development plans, such as the National Development Plan (NDP), Vision 2050, and other long-term frameworks; coordinates sectoral plans and policies to ensure consistency with national goals, and monitors and evaluates implementation of development strategies.

In addition, FMBEP analyses the macroeconomy and offers policy advisory to government; 

supports fiscal sustainability and economic growth strategies, and advises the government on economic trends and implications for planning and budgeting.

There’s no gainsaying that Bagudu has brought his wealth of experience to bear on his job – as evidenced by the recent successes in the macroeconomy.

In the past, one of the problems with  economic planning was the lack of coordination between the monetary and fiscal authorities, leading to policy failures.

It can be argued that recent policy successes in the fight against inflation as well as Foreign Exchange stability are a direct outcomes of improved harmony between the monetary and fiscal authorities, midwifed by Bagudu.  

Among other things, the economy is currently driven by services sector, compared to the past when oil held sway.

This serves as buffer for the economy in the event of oil volatility in the international market.

 The minister took the ministry’s mandate as the guardian of Chapter 2 of the 1999 Constitution, as amended, which outlines the Fundamental Objectives and Directive Principles of State Policies seriously. 

He revitalised the legal framework for implementing the chapter, primarily through the National Economic Council.

Although an incorporated member, his ministry provided the secretariat for the council.

Using his experience as a former governor, the minister has found a way to achieve consensus more quickly across broad party lines.

For instance, issues on state policing, which is awaiting final approval, have reached consensus.

Also, the minister had driven the war against crude oil theft; and the implementation of local government financial and political autonomy. 

Special Duties Department

Nonetheless, the minister’s unwavering commitment to inclusive governance, institutional strengthening, and improved intergovernmental coordination has fostered the enabling environment in which the Special Duties Department has continued to thrived.

The department undertakes a crucial role in coordinating additional activities beyond the ministry’s core functions. 

It serves as the secretariat for the National Economic Council (NEC) and its Ad-Hoc Committees, the Joint Planning Board/National Council on Development Planning (JPB/NCDP), the Community of Practice (CoP), and the Implementation Monitoring Committee (IMC). 

Under Bagudu’s watch, the department has continued to play a vital role in promoting economic policy coherence across the three levels of government. 

The minister’s foresight, political will, and unwavering support for sub-national capacity-building and evidence-based planning have enabled the department to fulfil its cross-cutting coordination responsibilities with diligence and purpose.

The department has served to complement the ministry as well as spearheaded the effective Coordination of the National Economic Council (NEC) and successfully facilitated and participated in 11 National Economic Council (NEC) meetings, ensuring that deliberations were strategically structured, policy discussions were well-informed, and resolutions were implemented in a timely and effective manner.

These meetings addressed economic matters and advanced the nation’s development agenda, with phenomenal outcomes, featuring stronger bonds and linkages, as well as collaborations that propelled development across the sub-nationals.

Through its activities the special duties department has  supported the NEC Ad-Hoc Committees on critical national issues, offerring secretarial and technical coordination to various NEC Ad-Hoc Committees focused on key national priorities.

The department contributed to the development of policy recommendations designed to combat illegal oil activities, increase transparency, and protect government revenue.

It also contributed to the development of the National Electrification Strategy and Implementation Plan, and aided stakeholder coordination and policy development initiatives to enhance electricity access across the country, particularly for underserved rural communities.

The department facilitated discussions and intergovernmental collaboration to enhance national immunisation efforts and expedite the eradication of polio.

It further organised comprehensive training sessions for Commissioners of Budget and Economic Planning across the 36 states, aimed at enhancing technical capacity in economic planning, public budgeting, and evidence-based policy development. 

Enhancing Institutional Performance

These achievements highlighted the central role played by the special duties department in bridging federal and state economic governance, enhancing institutional performance, and advancing the country’s development agenda. 

The department remains dedicated to fulfilling its mandate under the ongoing strategic guidance and political leadership of Bagudu.

These sessions have significantly contributed to reforms in sub-national economic governance and improved alignment with national development priorities.

Through Bagudu’s leadership, the department has coordinated intergovernmental economic planning via a Community of Practice (CoP), and successfully organised the hosting of three CoP meetings.

 A virtual meeting and two onsite meetings were held in Abuja and Umuahia, Abia State, in November 2024 and April 2025, respectively.

The CoP, a forum for Honourable Commissioners of Budget and Planning across the 36 States, provided opportunities for knowledge-sharing, peer learning, and review among sub-national governments.

It is noteworthy that as coordinating ministry, Bagudu  through the NEC, CoP, JBP/NCDP, and other high-level meetings, disseminated valuable information to states and federal agencies, thereby bridging gaps by providing linkages and partnerships that promoted effective policy formulation.

The special duties department successfully coordinated the fourth edition of the NEC Implementation Monitoring Committee (IMC) field visits across all six geopolitical zones, in collaboration with relevant stakeholders, as well as produced the 2024 NEC Resolutions Tracking Report, which was duly submitted to the Office of the Vice President (OVP), ensuring proper follow-up on Council decisions.

One of the key challenges to economic planning in the past was the subject of policy inconsistencies by previous administrations.

However, under Bagudu, the federal government has reaffirmed its commitment to policy predictability thereby restoring investor confidence and trust in the economy.

*Initiative to unlock blended, concessional capital for businesses

James Emejo in Abuja

The Bank of Industry (BoI) has launched its Sustainable Finance Framework, a strategic blueprint that reaffirms the bank’s commitment to driving responsible, inclusive and environmentally sustainable growth across the country.

The framework aligns with BoI’s 2025–2027 corporate strategy, which prioritises long-term development impact, environmental stewardship, social inclusion, and the creation of shared value—while addressing both national and global challenges.

In a statement, Managing Director/Chief Executive, BoI, Dr. Olasupo Olusi, said the  framework marked a significant milestone in “our journey to become a fully sustainable development finance institution.”

He said, “It reflects our strategic intent to finance enterprises that deliver both economic value and measurable social and environmental benefits.”

The bank’s Divisional Head, Public Relations, Theodora Amechi, said the blueprint was also designed to empower Nigerian enterprises.

She noted that the framework establishes a strong foundation for aligning BoI’s financing activities with global sustainability goals and leading Environmental, Social, and Governance (ESG) practices.

Furthermore, Amechi said the framework is aligned with key global and national sustainability principles, including the UN Sustainable Development Goals (SDGs); Paris Agreement;

Principles for Responsible Banking, and the Nigerian Sustainable Banking Principles (NSBP).

The blueprint also integrates the BoI’s internal ESG frameworks, including its ESG and Corporate Social Responsibility (CSR) policies, which guide the bank’s sustainability management practices.

At the heart of the framework is the bank’s adoption of a triple-bottom-line model focused on People, Planet and Profit, ensuring, its investments generate financial returns alongside inclusive and environmental outcomes, the statement added.

The framework will enable the bank to programmatically raise Green, Social and Sustainability Bonds and Loans, in line with the latest applicable International Capital Market Association (ICMA), Loan Market Association (LMA) and Loan Syndications and Trading Association (LSTA) principles and guidelines.

It added that the framework had also been independently evaluated by S&P Global Ratings, which issued a Second Party Opinion (SPO) affirming its alignment with international sustainable finance principles.

The validation enhances the bank’s credibility among institutional investors seeking impactful ESG-aligned opportunities in emerging markets.

Amechi said, “Through this framework, BoI aims to support businesses committed to sustainable practices, unlock access to blended and concessional capital, and advance national priorities such as climate resilience, job creation, gender inclusion, and export diversification.

“It will further enable the bank to scale its impact across priority sectors including renewable energy, clean transportation, agro-processing, healthcare, education, and digital infrastructure.”

Despite recent positive credit approvals by international rating agencies on the Nigerian economy amid ongoing reforms by monetary and fiscal authorities, the impact is yet to permeate the system as disposable income remained largely impaired, James Emejo writes

Nigeria’s most recent credit ratings have acknowledged some of the bold reforms currently being implemented by the government, especially the Central Bank of Nigeria (CBN), leading to salutary impacts on macroeconomic thresholds.

Standard & Poor’s (S&P) currently rates Nigeria’s long-term foreign currency credit rating at B-, with a stable outlook, attesting to Nigeria’s creditworthiness. 

Fitch upgraded Nigeria’s sovereign credit rating to ‘B’ with a stable outlook following reforms and improvements in macroeconomic stability, and reflected the government’s commitment to policy reforms, including exchange rate liberalisation and monetary policy tightening. 

Also, Moody’s Investors Service rated the country at “Caa1” for both its long-term foreign and local currency issuer ratings which indicated a positive outlook.

Macroeconomic indicators, particularly Gross Domestic Product (GDP), unemployment rate, inflation, interest rates, and the balance of payments (BOP) are crucial for understanding and managing an economy, providing insights into its overall health, performance, and potential future trends. 

With recent improvements in inflation, price stability, and BOP, it is no wonder that rating institutions have decided to issue positive assessments to the country.

Hardship Still Elevated 

However,  the country’s macroeconomic success appeared to be at variance with economic reality – as living standards and poverty remained largely elevated despite a reduction in inflation and exchange rate stability. 

The seeming lack of congruence between macroeconomic advances and economic reality was one of the topical issues addressed by CBN Governor, Mr. Olayemi Cardoso, after the 300th meeting of the Monetary Policy Committee (MPC) last week in Abuja.

On the back of improvements in inflation and price stability, the apex bank resolved to leave the monetary policy parameters unchanged at current levels.

The MPC voted unanimously to hold policy, retaining the MPR, the rate at which commercial banks borrow from the central bank, at 27.50 per cent.

The committee also retained the asymmetric corridor around the MPR at +500/-100 basis points, the Cash Reserve Ratio of Deposit Money Banks at 50 per cent and Merchant Banks at 16 per cent, and left the Liquidity Ratio unchanged at 30 per cent.

Cardoso acknowledged the relative improvements in some key macroeconomic indicators which are expected to support the overall moderation in prices in the near to medium term.

He identified specific areas of improvement including the progressive narrowing of the gap between the Nigerian Foreign Exchange Market (NFEM) and Bureau De Change (BDC) windows, the positive balance of payments position, and easing the price of PMS.

He said the committee was satisfied with the progressive moderation in food inflation and, therefore, commended the government for implementing measures to increase food supply as well as stepping up the fight against insecurity, especially in farming communities. 

Nonetheless,  there are growing concerns that the reforms and resulting global approvals appeared to benefit foreign investors at the expense of vulnerable Nigerians as actual prices of goods and services remained out of reach for most Nigerians. 

 Boost in Investor Confidence 

Cardoso, nevertheless assured that the reform initiatives that have been widely celebrated will “begin to yield greater results as time goes on”, painting out that the approval came at a critical juncture when other economies are limping. 

The CBN governor stressed that the bank’s reforms have instilled confidence in the economy and the central bank whose credibility had since been eroded before the assumption of the new administration.  

According to him, such reforms were key to bringing foreign investments that would in turn create jobs and prosperity for Nigerians. 

He said, “Let me comment that the Fitch upgrade is particularly important because it was coming at a time when there were global economic headwinds and shocks, and there was a lot of uncertainty.

“So, it’s important for us to realise that despite all that, there was a move by Fitch to upgrade, and I think that is a very positive signal.

“Now, in terms of how these whole macroeconomic fundamentals are playing out, although there have been positive endorsements from all kinds of bodies that make it a point of duty to observe and critique the moves that various countries are making to ensure they have stability in their economies.”

He said, “Investors don’t go to where there is instability. So, I think that is the first thing to understand on the journey, and this is a journey. 

“Investors don’t go out to invest to lose money. They go out to invest because the economy is stable, and they can plan. With that stability comes confidence, with confidence comes investment, and with investment comes growth and outputs.

“I think that’s the trajectory that you will find in all countries of the world. We have been through a long period of instability.

“And I think that clearly what is being recognised is that the Nigerian economy is now stable, and there’s interest in those who want to invest to now invest.”

Fixing Economy, Not Silver Bullet

Cardoso further explained, “Clearly, the inflation numbers speak for themselves. The overall trajectory is in the right direction. Not one particular aspect of managing the economy is a bullet that will solve all the problems. 

He said, “It’s a multiplicity of different endeavors, and that is why the combination of the efforts that are being made and are yielding results in terms of stability—and don’t forget, the central bank is the custodian of stability in an economy.

“If you look at the exchange rate, for example, volatility has reduced from over four per cent a year ago to less than half of one per cent around now. 

“So, that’s an indication of stability, and with the increasing collaboration between the fiscal and the monetary side, the journey that we are going through will begin to yield greater results as time goes on I have no doubt about that.”

The CBN governor also addressed naira’s depreciation amid global economic uncertainties in recent times, noting that a lot of the measures taken by the CBN to stabilise the economy helped to moderate the depreciation of the local currency, adding that devaluation had been modest compared to other countries during the period of global uncertainty.

He said, “I dare say that if those actions had not been taken when they were, the results would have been a lot more disastrous. So, it’s a good thing that we started these reforms early and that we stayed the course to the point where we built buffers that can withstand shocks that come in.

And that dovetails into your issue of reserves.

“If you look at and make the comparison between Nigeria during the last month or two when the whole issue of global tensions got heightened. Let’s face it—right now, we’re in a period of heightened uncertainty. 

“And if you are all observing, you’ll find that the various currencies of the world were under attack and were having to defend themselves. 

“You’ll find that relative to other countries, Nigeria came out very well engaged. We were able to ensure that our depreciation was very modest and that the stability was pretty much there.”

Analysts’ Perspectives

Speaking to ������Ƶ on the issue, Group Managing Director/Chief Executive, Bristol Investments Limited, Dr. Chijioke Ekechukwu, attributed the reforms’  lack of impact to the government’s disposition to increase revenues rather than be concerned about citizens’ welfare.

He said, “Nigerians are not benefitting from the economic reforms even as multilateral institutions are rating these reforms high because the reforms are designed to improve the revenue and credibility of the country and not to reduce the poverty situation of its citizens.

“Removal of fuel subsidy, the merging of foreign exchange rates, increase in electricity tariff, increase in value-added tax and other taxes, etc, will continue to reduce the disposable income of ordinary citizens while increasing the revenue of the country.”

The former Director General of the Abuja Chamber of Commerce and Industry (ACCI) said, “As inflationary trends continue to rise, prices of goods remain high, and goods are no longer affordable to Nigerians.

“My recommendation is that the government should endeavour to put the welfare and survival of its citizens into consideration, even as the reforms are being propagated. They should take the reforms in phases while providing succour to ameliorate the impact of the reforms.”

On his part, Managing Director/Chief Executive, SD&D Capital Management Limited, Mr. Idakolo Gbolade, said reform will take a while to make a meaningful impact on the living conditions of ordinary Nigerians, and called for accountability in policy implementation by government agencies. 

He said, “The current reforms will take some time to permeate the economy because of long-term causative factors like high inflation, high cost of doing business, insecurity, and government bureaucracy.  

“The federal government reforms on the petroleum sector, for example, will only begin to impact on the economy when the government refineries are working at full stream and other local refineries have a constant local crude oil supply.

“The various reforms in agriculture, health, energy, and digital economy will also take longer to be impactful because of long-term decadence in these sectors. 

“The federal government needs to hold various drivers of government policies accountable for the slow effect of government reforms and demand accountability from MDAs regarding performance.”

James Emejo in Abuja

Minister of State for Industry, Senator John Enoh, yesterday, called for united and concrete measures to usher a new industrial revolution in the country.

Speaking at the opening of the 16th National Council on Industry, Trade and Investment (NCITI), in Lagos, Enoh said the council was not just “another policy gathering – it is a clarion call to transform ambition into action”.

He said, “We stand on the edge of a new industrial dawn. The time to act is not tomorrow – it is now.”

The minister said the country’s economic transformation hinged squarely on the bold agenda of the Industrial Revolution Work Group (IRWG) – a cross-sectoral initiative he inaugurated in February.

Addressing a high-level audience comprising federal and state officials, captains of industry, and development partners, the minister described IRWG as “a strategic engine room designed to dismantle legacy barriers, ignite real sector productivity, and position Nigeria as a continental powerhouse of value-added manufacturing”.

He said, “As the curtain falls on this year’s council meeting, one thing is clear: Nigeria’s industrial story is being rewritten-not in theory, but in steel, concrete, cotton, ethanol, and enterprise.

“This council is not just another policy gathering-it is a clarion call to transform ambition into action. We stand on the edge of a new industrial dawn. The time to act is not tomorrow-it is now.”

In a statement issued by his Senior Special Adviser, Strategic Communications,

Ifeoma Williams, Enoh called on stakeholders to “move from rhetoric to results” by aligning with the IRWG to unlock financing for MSMEs, activate dormant industrial zones, and build thriving, employment-generating clusters across the federation.

The 16th session of the council, held under the theme, “Accelerating Diversification by Leveraging Industry, Trade and Investment for Shared Prosperity,” reviewed a total of 75 memoranda, including 40 information items and 30 actionable recommendations, marking a significant step towards a more implementation-focused industrial agenda.

Addressing the plenary, the minister struck a chord with his compelling vision.

He outlined the five foundational pillars of IRWG, namely, Financing and Investment Transformation; Energy and Infrastructure Modernisation; Regulatory Reforms and Ease of Doing ������Ƶ; Product Standards and Market Expansion; and Human Capital Development and Industrial Innovation. Enoh emphasised that these were no longer theoretical constructs, but real-world levers already being activated nationwide.

Under the Renewed Hope agenda of President Bola Tinubu, the minister unveiled a suite of transformative projects set for launch in the coming months.

The projects included agro-processing hubs in Kano, for turning cassava into ethanol and starch while powering thousands of new jobs; textile clusters in Aba and Lagos, poised to reposition both cities as regional powerhouses for garment manufacturing and export; and a pharmaceutical production enclave in Ogun State, aimed at securing Nigeria’s medicine supply chains and drastically cutting import dependency.

Enoh said, “This is no time for pilot programmes or policy lip service. We are entering an era of full-scale industrialization-where every investment, every reform, every decision must drive us toward a globally competitive, inclusive, and innovation-led economy.”

He also extended a decisive call to the private sector and sub-national governments

to “embrace this momentum with both hands,” declaring that the IRWG offers an

unprecedented opportunity to convert Nigeria’s vast potential into measurable industrial might.

•Says decline in crude oil prices pose new challenges for budget implementation 

James Emejo in Abuja and Nume Ekeghe in Lagos

The Central Bank of Nigeria (CBN) yesterday resolved to leave the monetary policy parameters, including the Monetary Policy Rate (MPR), the benchmark interest rate, unchanged at current levels.

Monetary Policy Committee (MPC) of the apex bank unanimously voted to hold policy, retaining the MPR, the rate at which commercial banks borrow from the central bank, at 27.50 per cent.

The committee also retained the asymmetric corridor around the MPR at +500/-100 basis points, Cash Reserve Ratio of Deposit Money Banks at 50 per cent and Merchant Banks at 16 per cent, and left the Liquidity Ratio unchanged at 30 per cent.

Addressing journalists after the 300th meeting of the MPC in Abuja, Governor of CBN, Mr. Olayemi Cardoso, acknowledged the relative improvements in some key macroeconomic indicators, which were expected to support the overall moderation in prices in the near to medium term.

Cardoso identified specific areas of improvement to include the progressive narrowing of the gap between the Nigeria Foreign Exchange Market (NFEM) and Bureau De Change (BDC) windows, the positive balance of payments position, and easing price of premium motor spirit (PMS).

Cardoso, who read the committee’s communique, said MPC was satisfied with the progressive moderation in food inflation. He commended the government for implementing measures to increase food supply and stepping up the fight against insecurity, especially in farming communities.

The committee encouraged the security agencies to sustain the momentum, while government provided necessary inputs to farmers to further boost food production.

The CBN governor, quoting the National Bureau of Statistics (NBS), said headline inflation (year-on-year) declined to 23.71 per cent in April 2025, compared with 24.23 per cent in March 2025.

On a month-on-month basis, it also declined to 1.86 per cent in April 2025, from 3.9 per cent in the previous month, he said.

He pointed out that both food and core components contributed to the decline in inflation in the period.

While food inflation eased further to 21.26 per cent in April 2025, from 21.79 per cent in the previous period, the core index also declined to 23.39 per cent in April 2025, compared with 24.43 per cent in March.

Nonetheless, Cardoso acknowledged underlying inflationary pressures driven largely by high electricity prices, persistent foreign exchange demand pressure and other legacy structural factors.

He said new policies were being introduced by the federal government to boost local production, reduce foreign currency demand pressure, and lessen the pass-through to domestic prices.

Cardoso said given the relative stability observed in the FX market, the committee urged the CBN to sustain the implementation of ongoing reforms to further boost market confidence.

MPC also called on the fiscal authority to strengthen current efforts at enhancing foreign exchange earnings, especially from gas, oil and non-oil exports.

The committee, however, expressed concerns about the recent decline in crude oil prices, attributable to increased production by non-OPEC members as well as uncertainties associated with U.S. trade policy, which presented new challenges for fiscal receipts and budget implementation.

The committee reaffirmed the continued stability of the banking system following notable improvements in key performance indicators and observed the appreciable progress in the ongoing recapitalisation exercise.

The committee further urged the CBN to sustain its effective oversight of the industry to ensure compliance with regulatory and macro-prudential guidelines.

Cardoso pointed out that it was based on the strength of those considerations, and driven by the continued uncertain policy environment, exacerbated by ongoing global shocks, that MPC weighed the available policy options.

He said members were unanimous in their decision to hold policy to enable a better understanding of near-term developments.

MPC also reaffirmed its commitment to prioritise policies targeted at anchoring inflation expectations and easing exchange rate pressure.

The apex bank’s boss also disclosed that gross external reserves increased by 2.85 per cent to $38.90 billion as at 16th May 16, 2025, from $37.82 billion at the end of March. He said this represented an import cover of 7.6 months for goods and services, while Balance of Payments (BOP) recorded a surplus of $1.10 billion in the fourth quarter of 2024, compared with $4.21 billion in the preceding quarter, on account of moderation in current account surplus.

Cardoso said although global output growth was expected to remain positive, despite existing and emerging headwinds, the International Monetary Fund (IMF) downgraded its global growth forecast to 2.8 per cent in 2025 and 3.0 per cent in 2026, compared with 3.3 per cent in 2024 due to the uncertain policy environment.

MPC members were unanimous in their resolution to maintain close surveillance of developments in both the domestic and global environments to enable appropriate policy response to emerging shocks, the CBN governor added.

Addressing concerns that despite approvals from ratings agencies in recent times, Nigerians were yet to feel the impact of improvements in the macro economy, Cardoso assured that the reform initiatives that had been widely celebrated will “begin to yield greater results as time goes on”.

He stated, “Let me make the comment that the Fitch upgrade is particularly important because it was coming at a time when there were global economic headwinds and shocks, and there was a lot of uncertainty.

“So, it’s important for us to realise that in spite of all that, there was a move by Fitch to upgrade, and I think that is a very positive signal.

“Now, in terms of how these whole macroeconomic fundamentals are playing out in spite of the fact that there have been positive endorsements from all kinds of bodies that make it a point of duty to observe and critique the moves that various countries are making to ensure they have stability in their economies.”

He added, “I think it’s important to say that investors and let’s face it, without investments, economies don’t grow.

“Investors don’t go to where there’s instability. So, i think that is the first thing to understand on the journey, and this is a journey.

“Investors don’t go out to invest to lose money. They go out to invest because an economy is stable, and they can plan. With that stability comes confidence, with confidence comes investment, and with investment comes growth and outputs.

“I think that’s the trajectory that you will find in all countries of the world. We obviously have been through a long period of instability.

“And I think that clearly what is being recognised is that the Nigerian economy is now stable, and there’s interest in those who want to invest to now invest.”

Cardoso said, “Clearly, the inflation numbers, they speak for themselves. The overall trajectory is in the right direction. Not one particular aspect of managing the economy is a bullet that will solve all the problems.

“It’s a multiplicity of different endeavours, and that is why the combination of the efforts that are being made and are yielding results in terms of stability—and don’t forget, the central bank is the custodian of stability in an economy.

“If you look at the exchange rate, for example, volatility has reduced from over four per cent a year ago to less than half of one per cent around now.

“So, that’s an indication of stability, and with the increasing collaboration between the fiscal and the monetary side the journey that we are going through will begin to yield greater results as time goes on I have no doubt about that.”

The CBN governor also addressed Naira’s depreciation amid global economic uncertainties in recent times.

Cardoso said a lot of the measures taken by CBN to stabilise the economy helped to moderate depreciation of the local currency, adding that devaluation has been modest compared to other countries during the period of global uncertainty.

He said, “I dare say that if those actions had not been taken when they were, the results would have been a lot more disastrous. So, it’s a good thing that we started these reforms early and that we stayed the course to the point where we built buffers that are able to withstand shocks that come in.

And that dovetails into your issue of reserves.

“If you look at and make the comparison between Nigeria during the last month or two when the whole issue of global tensions got heightened. Let’s face it—right now, we’re in a period of heightened uncertainty.

“And if you are all observing, you’ll find that the various currencies of the world were under attack and were having to defend themselves.

“You’ll find that relative to other countries, Nigeria came out very well engaged. We were able to ensure that our depreciation was very modest and that the stability was pretty much there.”

•Clarifies crowd-sourced prices different from CPI equivalent

James Emejo in Abuja

National Bureau of Statistics (NBS) yesterday announced the release of its maiden prices data, compiled through crowd-sourcing initiative.

The innovative approach to data collection marked a significant milestone in NBS’ efforts to provide timely and accurate statistical information to policymakers, researchers, and the general public.

The release was conveyed in a statement in Abuja by NBS Head of Public Relations, Mr. Folorunso Alesanmi.

Alesanmi said data collection was done in all the 36 states, Federal Capital Territory (FCT), and in all the senatorial districts.

He said the crowd-sourcing initiative, which started several months ago, aimed at compiling prices data on a daily basis from a wide range of sources, including open markets, supermarkets, neighbourhood shops, bulk and discount stores, street outlet and large shops.

Leveraging the power of crowd-sourcing, he said the statistical agency had been able to collect a vast amount of data that would help provide a more accurate picture of price movements in the economy.

Statistician-General of the Federation (SGF), Prince Adeyemi Adeniran, said the crowd-sourcing initiative sought to modernise data collection, and provide timely and accurate statistics.

Adeniran described the initiative as a “major step forward in our efforts to harness the power of technology and innovation to improve the quality and timeliness of our statistical data”.

According to him, the data provides insights into prices of essential food items, such as local rice, beans, maize, garri, yam, among others, which are commonly consumed by Nigerians, offering a snapshot of daily food costs.

The SGF, however, explained that prices data compiled through crowd-sourcing was not comparable to those compiled for Consumer Price Index (CPI).

According to him, prices data for CPI computation are collected on a specific or predetermined outlets every second and third week of the month.

But prices data collected via crowd-sourcing were collected randomly from different respondents every day, he explained.

Adeniran said, “We are thrilled to release our first prices data compiled through crowd-sourcing.

“The Bureau hereby invites citizens to participate by submitting price data and feedback to build a robust statistical system for a rapidly changing economy.

“NBS is committed to ensuring the quality and accuracy of the data collected through crowd-sourcing. To this end, the agency has implemented a range of quality control measures, including data validation and verification processes, to ensure that the data is reliable and trustworthy.

“The release of the crowd-sourced prices data is a significant achievement for the NBS and demonstrates the agency’s commitment to innovation and collaboration.

“By working together with citizens and leveraging technology, the NBS is able to provide more timely and accurate statistical information that will help to drive economic growth and development.”

The crowd-sourced data is accessible to the public through a dedicated public dashboard, where users can view, analyse, and download the data in real-time, further enhancing transparency and accessibility.

The statistical agency plans to update the data on a daily basis, equipping entrepreneurs, policymakers and researchers with a valuable tool for tracking price movements and informing decision-making.

James Emejo in Abuja

Executive Director/Chief Executive, Nigerian Export Promotion Council (NEPC), Nonye Ayeni, yesterday, said the country’s non-oil exports increased to $5.46 billion in the first quarter of the year (Q1 2025), compared to $4.52 billion in the corresponding quarter of 2024.

Speaking at the presentation of Q1 2025 progress report on the non-oil export performance for the period under review, Ayeni said the 20.77 per cent year-on-year increase represented the highest value of export since the council was established 49 years ago.

She said non-oil products exported in Q1 were valued at $1.79 billion, an increase of 24.75 per cent from $ 1.44 billion reported in 2024.

The volume also increased by 243.44 per cent, to 2.416 million metric tonnes (MMT), from 1.937 MMT recorded in the corresponding quarter of last year.

Ayeni said the council, alongside its supervising ministry, Federal Ministry of Industry, Trade and Investment, and other stakeholders remained committed to continuing the trajectory of increasing volume and value of non-oil exports from the country by providing support to the exporting community in the areas of capacity building, standardisation, and enhancing market access.

The NEPC boss said the efforts aligned with President Bola Tinubu’s Renewed Hope Agenda and the policy drive of Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, which were impacting non-oil export volumes and proceeds.

Ayeni stated, “The year 2024 result lends credence to the fact that several export intervention programmes/projects initiated and executed by the council, especially the ‘Double Your Exports’ campaign, are now yielding results.”

She said NEPC will remain resolute and committed to driving up the volume and value of non-oil exports for sustainable and inclusive economic growth.

Giving further breakdown of non-oil export performance in the review period, Ayeni revealed that 197 distinct products were exported, compared to 162 products recorded in Q1 2024.

She said the products ranged from manufactured and semi-processed goods to industrial extracts, and agricultural commodities.

She said based on information received from Pre-shipment Inspection Agents (PIAs) of the top-20 products exported in Q1, cocoa and its derivatives, including cocoa butter, cocoa liquor, cocoa cake, came top, followed by urea, cashew nut, sesame seed, gold dore, aluminium ingots, copper ingot, soya beans/meal, and rubber.

Ayeni said cocoa beans accounted for 45.02 per cent of the top non-oil commodity export, while urea/fertiliser accounted for 19.32 per cent, and cashew nuts 5.81 per cent.

Furthermore, 16 exit points were used in the period under review to export non-oil products from the country while 95 per cent of non-oil exports were routed through seaports, the NEPC boss added.

In total, six seaports, three international airports and seven land borders served as exit points for Nigeria’s non-oil exports.

The exports traversed diverse regions, including Africa, the Americas, Asia, Europe, and Oceania.

Notably, the Netherlands, Belgium, and Brazil emerged as the top three countries in terms of the export values of non-oil products from Nigeria.

Ayeni said the council had continued the drive towards building the capacity of value chain players from farm gate to market.

She said, “In the first quarter, we ran various trainings in the areas of good agricultural, good storage practice, good warehousing practice, packaging and labelling, cluster formation, ecommerce, logistics, among others.

“In these areas, we had hands-on training, coaching, and mentoring of MSMEs in the nooks and crannies of Nigeria in the six geo zones leveraging our regional and state offices in the 36 states of the federation and the FCT.”

•Approves basic KYC, AML requirements for $2,000 and $5,000 equivalent in naira for individuals, corporate, respectively��

•ADBs now free to source liquidity for PAPSS settlements through Nigerian foreign exchange market without recourse to CBN

James Emejo in Abuja

Central Bank of Nigeria (CBN), yesterday, announced a major review of documentation requirements for transactions conducted through the Pan-African Payment and Settlement System (PAPSS) in the country.

The move was part of CBN’s ongoing commitment to foster seamless intra-African trade, financial inclusion, and operational efficiency for Nigerians engaging in cross-border payments within Africa.

The amendments were conveyed in a statement issued by the apex bank’s acting Director, Corporate Communications Department, Mrs. Hakama, Sidi Ali.

PAPSS was launched on January 13, 2022 by African Union (AU) and African Export-Import Bank (Afreximbank) to complement trading under the African Continental Free Trade Area (AfCFTA) with further future planned rollout in the Caribbean region.

It is a Pan-African real-time gross settlement (RTGS) infrastructure for cross-border payments in distinct local currencies, and serves as a centralised payment and settlement platform that enables instant, secure, and efficient cross-border transactions throughout Africa.

To ease cross-border transactions, the central bank stated that it was effective immediately, and to simplified documentation for low-value transactions, customers might now use basic Know-Your-customer (KYC) and Anti-Moneylaundering (AML) documents provided to their Authorised Dealer Banks (ADBs) for low-value transactions of $2,000 and $5,000 equivalent in Naira for individuals and corporate, respectively. 

CBN pointed out that for transactions above the thresholds, all documentation as stipulated in the CBN Foreign Exchange Manual and related circulars remained mandatory.

The central bank further stressed that applicants were responsible for ensuring all regulatory documents were available to facilitate the clearance of goods, as required by relevant government agencies.

According to the apex bank, by facilitating payments in local currencies, PAPSS minimises reliance on third-party currencies, reduces transaction costs, and supports the rapid expansion of trade under the AfCFTA.

Likewise, as part of the revised policy, CBN stated that ADBs might now source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market, without recourse to the apex bank.

Furthermore, all export proceeds repatriated via PAPSS shall be certified by the relevant processing banks, it added.

CBN urged all banks to adopt PAPSS and commence originating transactions in line with the new policy.

It encouraged exporters, importers, and individuals to familiarise themselves with the new requirements and leverage PAPSS for cross-border transactions within Africa.

•Declares unstable exchange rate creating uncertainty for traders, affecting customs valuation, others��

•Says US tariff created uncertainty for Service

James Emejo in Abuja

The Comptroller General, Nigeria Customs Service (NCS), Mr. Bashir Adewale Adeniyi, yesterday disclosed that the service collected N1.75 trillion in revenue in the first quarter of the year (Q1 2025).

Compared to its N6.58 trillion target for 2025, the proportional benchmark in Q1 stood at N1.65 trillion.

Adeniyi said the service exceeded its quarterly target by N106.5 billion, achieving 106.47 per cent projection.

He added that the outstanding performance represented a substantial 29.96 per cent increase  compared  to N1.35 trillion Q1 2024.

Month on month, January’s collection of N647.88 billion not only surpassed its monthly target of N548.33 billion by 18.12 per cent, but also showed a remarkable 65.77 per cent year-on-year growth.

Also, February’s N540.11 billion exceeded its target by 1.3 per cent while achieving 19.97 per cent growth over 2024 figures.

In March, the service maintained the positive trend with N563.52 billion, delivering 2.7 per cent above target and 11.22 per cent improvement over the corresponding period of 2024.

The CGC said, “The numbers we’re releasing today show concrete results from the reforms initiated under President Bola Ahmed Tinubu’s administration and the supervision of the Minister of Finance and coordinating minister of the Economy, Mr. Olawale Edun’s leadership.

“These results substantiate our effective measures to curb revenue losses while streamlining compliant trade. The 29.96 per cent annual increase and steady monthly collections confirm our strategy is working.

“We’ll maintain this momentum through rigorous enforcement and strengthened partnerships.”

Nonetheless, Adeniyi lamented that despite the current achievements, the service encountered several challenges during the quarter which impacted its operations and performance.

He said exchange rate volatility continued to affect trade patterns and customs valuation, adding that the service recorded 62 changes in the exchange rate ranging from a minimum of N1,477.72 to a maximum of N1,569.53 per US dollar, with an average rate of N1,521.59 during the review period.

He said, “This volatility, though slightly moderated compared to the previous quarter (Q4 2024) which saw rates as high as N1,688.28, continues to create uncertainty for traders and affects the predictability of import costs.

“We have been working closely with the Central Bank of Nigeria  and the Federal Ministry of Finance to implement measures aimed at stabilising the exchange rate for import declarations.”

He also said the service faced uncertainty regarding the 14 per cent Reciprocal tariff imposed on Nigerian exports by the United States of America.

Adeniyi said the development had potential implications for the country’s export trade and required strategic diplomatic and policy responses.

To this end, he stated that stakeholders will meet this week devise an appropriate and coordinated response to the tariff, adding that diplomacy remained the best option in addressing the issues.

He also said the non-compliance, particularly in the form of smuggling, remained a persistent challenge despite enhanced enforcement efforts by customs.

He said, “We continue to adapt our strategies to combat increasingly sophisticated smuggling networks, leveraging technology and intelligence-led operations to tackle this threat to our economy and security.”

He said implementation and subsequent suspension of the Financial Customs Service Operation (FCSO), also known as the four per cent FOB further presented significant challenge to revenue collection.

The CGC said the development created temporary operational adjustments for both the service and its stakeholders.

Adeniyi further disclosed that the NCS maintained robust anti-smuggling operations during Q1, recording 298 seizures with a total Duty Paid Value (DPV) of N7.70 billion. representing a significant 78.41 per cent increase compared to N4.32 billion recorded in Q4 2024, demonstrating heightened operational effectiveness.

However, when compared to N9.59 billion recorded Q1 2024s, the  service  observed  a  19.70 per cent  reduction  in  DPV, Adeniyi stated.

He attributed the development  to improved compliance through sustained stakeholder engagement and the deterrent effect of our enforcement activities.

He said rice remained the most prevalent seized commodity, with 159 cases involving 135,474 bags valued at N939.31 million.

Petroleum products followed with 61 seizures totaling 65,819 liters valued at N43.34 million in DPV.

He said of particular note were 22 narcotics interceptions valued at N730.75 million, reflecting the service’s intensified focus on combating drug trafficking.

The service also recorded three high-value wildlife product seizures with a remarkable N5.65 million DPV, underscoring both the lucrative nature of the illegal trade and customs commitment to environmental protection under international conventions.

According to him, other notable seizures included textile fabrics (13 cases valued at  N134.22 million, retreaded tires (five cases valued at  N104.60 million, and pharmaceuticals (one case, worth N17.19 million.

He said,” These comprehensive results demonstrate the service’s vigilance across all categories of prohibited and restricted goods.”

He also disclosed that NCS’s duty exemptions on food imports have contributed to recent food price reductions, with effects seen both immediately and over time.

He said in Q1, waivers on maize stood at (N45.3 billion FOB value), rice (N751.6 million), and sorghum (N2.3 billion) also contributed to lowering prices by 12-18 per cent this year.

He said, “At the same time, the larger exemptions from 2024 on rice (N45.9 billion FOB) and wheat (N2.8 billion) are now showing their full effect after taking time to work through the supply chain.

“This combination of current and past exemptions helps explain the steady improvement in food affordability. The 2024 measures initially faced delays in reaching markets but eventually increased supplies, while the 2025 waivers provided additional support.

“Together, these policies have helped stabilise prices by improving availability at different times, showing how customs adjustments can influence food costs both in the short term and over longer periods.

“The NBS price data reflects this pattern, where the benefits of duty relief emerge gradually but add up to make food more affordable.”

He said the NCS’ strategic focus in 2025 will center on two key areas including continuous modernisation, particularly further expansion of the B’Odogwu platform, implementation of advanced risk management systems, and integration of emerging technologies into its operations.

He said, “Let me emphasise that every statistic we share today represents the hard work of our customs officers – stopping illegal goods at our borders, enabling lawful trade, and securing vital government revenue.

“While we’ve achieved significant successes this quarter, we’ve also encountered challenges that have provided valuable lessons for our ongoing operations.

“I want to be clear about our approach: we believe the public has a right to know how their customs service is performing. That’s why we’re here today – to give you the facts, answer your questions, and maintain the trust Nigerians place in our institution.”

James Emejo in Abuja

Minister of Budget and Economic Planning, Senator Abubakar Bagudu, yesterday clarified that the Presidential Committee on Population and Housing Census was an ad hoc technical body established to identify funding sources for the upcoming enumeration of Nigerians.

Speaking at the committee’s inaugural meeting, Bagudu explained that the body was distinct from the National Population Commission (NPC), the body legally mandated to plan, coordinate, and conduct population and housing censuses in the country.

He explained that the committee was an ad hoc advisory body created to provide targeted guidance on specific areas of census planning and resourcing, emphasising that members were appointed based on their offices’ strategic responsibilities.

Bagudu stressed that the committee’s role was to advise strictly within its five-point terms of reference, which included conducting a thorough review of the existing census budget to ensure alignment with current fiscal realities and national priorities.

He listed other terms as recommendations for feasible funding sources for the census, distinguishing between domestic resources and external partnerships, while developing a comprehensive resource mobilisation strategy that considered engagement with potential development partners, international agencies, and domestic private sector entities.

The minister stated that the ad hoc body would also evaluate NPC’s existing preparations, logistics, and technical capacities, and recommend immediate strengthening of any areas that required improvement.

It would also recommend an optimal and realistic date for the next population and housing census, funding availability, and other relevant national considerations.

Highlighting the committee’s task, Bagudu said, “A national census is not a routine administrative exercise; it is a sovereign investment in evidence-based governance.

“As we confront new challenges in urbanisation, security, food systems, public health, and social protection, the need for up-to-date population and housing data is not simply desirable but foundational.

“The assignment before this committee is therefore, urgent and consequential.”

President Bola Tinubu inaugurated the committee last week, to provide informed guidance on financing strategies, institutional coordination, and practical timelines for the enumeration.

The minister informed members that Tinubu had instructed the committee to submit preliminary recommendations within three weeks.

He said, “This timeline reflects both the gravity of the task and the confidence reposed in this team to provide practical, well-considered advice.”

He urged the members to fulfil their responsibilities with a shared commitment to excellence, professionalism, and national service, emphasising that NPC has established a strong foundation for its work.

According to him, “Our responsibility is to assess what exists, advise on what is feasible, and help unlock the next phase of action.”

He stressed that the committee’s work should reflect the best of institutional collaboration in service of the Nigerian people.

Essentially, the committee was formed following NPC’s briefing to the president on February 24 regarding the progress towards conducting a digital population and housing census with biometric components.

The commission provided a comprehensive overview, highlighting its readiness to deploy advanced technology, such as fingerprint, facial recognition, and voice capture, to ensure transparency and inclusivity.

Tinubu had reiterated his unwavering support for a credible and modern census, and stated the imperative of aligning such a major national undertaking with prevailing fiscal conditions.

He directed the formation of the Bagudu committee to provide informed guidance on financing strategies, institutional coordination, and practical timelines for implementing the NPC proposal.

Bagudu chairs the committee, which includes Chairman of NPC, Mr. Nasir Kwarra, as secretary; Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun; Minister of Information and National Orientation, Mr Mohammed Idris; Executive Chairman of the Federal Inland Revenue, Dr Zach Adedeji; Director-General of the National Identity Management Commission, Ms. Bisoye Coker-Odusote; Principal Private Secretary to the President, Mr. Hakeem Muri-Okunola; and Senior Special Assistant to the President on Administration (Office of the Chief of Staff), Mr. Temilola Adekunle-Johnson.

•Says operations created 445,000 jobs, supported 236,000 farmers, others

•Declares global headwinds from US tariffs unlikely to impair income growth in 2025

James Emejo in Abuja

The Managing Director/Chief Executive, Nigeria Sovereign Investment Authority (NSIA), Mr. Aminu Umar-Sadiq, yesterday disclosed that the authority has committed a total sum of $10.33 billion to stimulate economic activities in various sectors of the economy.

He also said its operations had created over 245,000 direct and 200,000 indirect jobs across various sectors.

Speaking at a media engagement on the NSIA 2024 earnings presentation in Abuja, Umar-Sadiq also said over 236,000 farmers have been supported through its various agriculture investments, adding that 68 per cent of the beneficiaries were youths of which 50 per cent were female.

He revealed that three hospital projects undertaken by the authority served over 282,100 patients, including 150,000 chemotherapy sessions.

He added that so far over 3,500 youths had received formal education through partnered educational institutions while the authority has 13,504 affordable houses under construction to address current housing deficits.

Furthermore, the NSIA boss said it supported several communities through CSR activities, particularly in the development of social infrastructure, out grower programmes among others.

He said it developed a 10MW solar project with over 500 jobs to be created directly and indirectly.

According to him, the authority, through its operations, provided economic stimulus to various sectors of the economy including agriculture $7.5 billion, motorways $1.8 billion, financial market, $695 million, gas industrialisation $274 million, healthcare, $42 million, and power $22.5 million.

He said through its operations and investments, the authority has generated positive social and economic nationwide impact and contributed towards the attainment of key SDGs for the country.

NSIA recently announced that its net assets increased by 96 per cent to N4.35 trillion in December 2024, nearly doubling the N2.22 trillion recorded in 2023.

Furthermore, Umar-Sadiq said over $500 million was committed to domestic infrastructure development, adding that the authority remained a leader in sustainability and preferred green partner of choice.

He also revealed that NSIA catalysed over $1 billion in third-party investment within the financial year under review, amid a robust infrastructure investment portfolio across key sectors including agriculture, healthcare and power.

He also said the authority invested in over 50 per cent of locally owned and run private equity (PE) funds.

He said Total Comprehensive Income (TCI) was buoyed by improved performance on fair value gains from externally managed investments due to market recoveries.

He added that increased earnings from eurobonds, and fixed deposits commercial papers helped to boost sustainable earnings in 2024.

The NSIA boss also assured that irrespective of the various challenges in the macroeconomy, particularly the impact of the global trade war stoked by President Donald Trump – this is unlikely to affect the authority’s stable income growth based on its strategic assets’ allocation including the Stabilization and Future Generations Funds, which are defensive.

He said, “If you look at the mandate of our Sovereign Wealth Fund, it is largely a savings mandate. So, irrespective of the ongoings on the macro-side, based on our strategic assets’ allocations, you’ll see stable income growth.”

•Oduwole declares country now ready for business

James Emejo in Abuja and Oluchi Chibuzor in Lagos

Nigeria yesterday officially gazetted and transmitted the ECOWAS Schedule of Tariff Offers for Trade in Goods under the African Continental Free Trade Area (AfCFTA) to the AfCFTA Secretariat.

The move came ahead of the 16th meeting of the AfCFTA Council of Ministers (COM), which is being held today in Kinshasa, Democratic Republic of Congo (DRC).

The development marked a crucial milestone in regional trade integration amid the current global trade war initiated by the United States President Donald Trump.

The Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, said the  gazetting and transmission of tariffs to the Secretariat signified the country’s readiness for trade under the agreement.

In a statement issued by the Director, Press and Public Relations in the ministry, Dr. Adebayo Thomas, the minister noted that the milestone would enable Nigerian exporters leverage preferential tariff access across African markets, positioning the country as a key player in regional and global trade.

Oduwole further noted that the development underscored Nigeria’s dedication to leveraging Africa’s single market for economic transformation.

The AfCFTA agreement establishes zero duties on 90 per cent of tariff lines for trade in goods, enhancing Nigeria’s market competitiveness and expanding trade opportunities across Africa.

Essentially, Nigerian goods are now competitively positioned in the African market, ensuring greater business access and profitability.

President Bola Tinubu signed the ECOWAS Schedule of Tariff Offers, which reinforces the country’s commitment to regional trade expansion, strengthening its role in shaping the future of intra-African trade and boosting export competitiveness under the AfCFTA framework.

Furthermore, it enables the seamless shipment of goods to and from Nigeria, unlocking new opportunities for businesses, manufacturers, and exporters.

Moreover, the gazetting of the Schedule of Tariff Concessions was expected to yield significant benefits, including boosting economic growth and job creation by reducing trade barriers, strengthening regional integration and trade relations through enhanced economic ties, and supporting Nigerian SMEs by lowering costs and encouraging market expansion.

Nigeria’s commitment to AfCFTA implementation makes it an attractive destination for foreign and intra-African investment, reinforcing its role as a trade hub in West Africa.

However, stronger engagement is required from African Trade Ministers to address other types of barriers, including non-tariff barriers that could hinder market access.

In addition, improving productive capacity and ensuring compliance with international standards remain imperative to maximise the benefits of the agreement.

In July 2024, Nigeria solidified its leadership in regional trade and integration with the formal gazetting of the Schedule of Tariffs for Trade in Goods to ensure Nigerian goods can access other markets competitively and profitably.

This reciprocal trade arrangement aligns with the directive of the 35th Ordinary Session of the Assembly of Heads of State and Government of the African Union in February 2022.

As a result, other AfCFTA State Parties can now accept consignments from Nigeria under the agreement.

Under its preferred classification, Nigeria’s tariff reductions for trade in goods follow a phased approach over 10 years beginning in 2021.

By 2025, the fifth year of AfCFTA implementation, a 50 per cent tariff reduction on NGN, implemented at a rate of 10 per cent per year, should immediately affect goods in trade with least developed countries in Africa.

For trade with developing countries on the continent, Nigeria retains the flexibility of complete tariff elimination (zero per cent) effectively immediately under AfCFTA, applying a 20 per cent reduction annually.

The gazetting announcement follows the AfCFTA digital trade mandate announced in February in Addis Ababa, where Tinubu received a personal commendation for his work on digital trade, further reinforcing the country’s commitment to regional and continental trade integration.

The statement added that as a digital trade co-champion, the country was advancing seamless trade facilitation and cross-border commerce, ensuring businesses, especially SMEs, can fully benefit from the AfCFTA framework.

•Seek to prioritise cost optimisation, service innovation

James Emejo in Abuja

Shareholders of Transcorp Hotels Plc, yesterday, okayed the sum of N7.57 billion as dividend for the 2024 financial year.

The board had proposed a final dividend of 64 kobo per share or N6.56 billion for the period under reviews.

In addition, an interim dividend of 10 kobo per ordinary share, paid at half-year, brought the full dividend to N7.57 billion or 74 kobo per share.

Speaking at the 11th Annual General Meeting (AGM) of Transcorp Hotels Plc, Chairman, Transcorp Hotels, Mr. Emmanuel Nnorom, said the dividend payments reaffirmed the company’s dedication to creating sustainable value for shareholders.

Nnorom said the year was defined by significant increase in revenue generation, cost management, and market positioning, demonstrating the company’s unwavering commitment to sustained growth and shareholder value creation.

According to him, the company achieved an impressive gross revenue of N70.13 billion, reflecting a remarkable increase compared to N41.46 billion in 2023.

Nnorom told shareholders that the growth underscored the effectiveness of management’s strategy to optimise pricing models and deliver consistent value to guests – as well as its ability to adapt, capitalising on market opportunities in the face of persistent inflation and fluctuating exchange rates.

The company recorded a profit before tax (PBT) of N22.61 billion, representing a 138 per cent year-on-year increase.

The stock price performance was equally outstanding, rising by 65 per cent to close at N116 on December 31, 2024.

Nnorom said as the company entered the next phase of its journey, it remained poised to unlock new opportunities, deliver exceptional value, and shape the future of hospitality in Nigeria and beyond.

He said, “Our strategy for 2025 focuses on scaling innovation, deepening customer engagement, and reinforcing our leadership position in the industry.”

According to him, “This milestone firmly positioned Transcorp Hotels Plc as one of the most attractive stocks on the Nigerian Stock Exchange (NGX). These results are a testament to investor confidence in our growth trajectory and prospects.

“Another highlight of the year, which contributed to the performance, was the company’s concerted effort to enhance guest experience and operational efficiency through strategic upgrades to its facilities.

“Transcorp Hotels Plc invested in modernising key areas of its operations, including introducing new culinary concepts and elevating service delivery to align with international standards.”

He added, “These enhancements have been instrumental in reinforcing the company’s reputation for excellence and attracting a more diverse clientele. As a result, guest satisfaction scores improved significantly, with the company sustaining, from July 2024 till date, the number one spot on TripAdvisor in terms of value for money and guest satisfaction.”

The chairman said, “Together, we will continue to write a story of enduring success—one that reflects the limitless potential of Nigeria and the unyielding spirit of Transcorp Hotels Plc.

“As we step into 2025, we do so with renewed determination and bold aspirations. The new year is not just an opportunity to sustain what we have achieved but a chance to redefine what is possible.”

The newly appointed Managing Director/Chief Executive, Transcorp Hotels, Uzoamaka Oshogwe, said, “As we step into 2025, we reaffirm our promise to innovate, personalise, and exceed your expectations at every touchpoint.”

She said, “As we embrace 2025 and beyond, we do so with a renewed sense of purpose. The road ahead will demand innovation, resilience, and strategic thinking— qualities that have long defined Transcorp Hotels Plc, and will continue to shape our legacy. Together, as one unified team, we will scale new heights, redefine industry standards, and build a future where African hospitality stands proudly on the global stage.”

The managing director said with Nigeria’s economy on the path of recalibration and increased regional integration across Africa, hospitality will continue to play a critical role in economic growth, job creation, and global connectivity.

She said, “We see these changes not as challenges but as opportunities—opportunities to redefine the guest experience, expand our impact, and elevate African hospitality to global standards.

“Through strategic foresight, operational agility, and customer-centric innovation, we are well-positioned to seize the moment and unlock new frontiers of growth.”

Oshogwe also vowed to sustain the growth already achieved in the company.

“So, I must continue to build on the exceptional guest experience because in the middle of this business, the most important thing is our guests, after our staff,” she stated.

She added, “We’re going to, through innovation, give them the type of experience that they would not have experienced anywhere else. And that is using technology. Because there’s nothing as discouraging as the guests coming in and it’s taking so long to check in.

“We’re going to ensure that the checking process is seamless. And then when they get into their room, they will feel like they’re the only guest in the hotel. That is giving them a guest experience that is personalised.”

•Reveals position enough to withstand external shocks��

•$500m W’Bank Loan: LCCI advises FG to focus on addressing poor power supply, high energy cost

•Says loan will provide short-term stimulus with unsavory long-term macroeconomic implications

James Emejo in Abuja and Dike Onwuamaeze in Lagos

The Central Bank of Nigeria (CBN), yesterday reported a marked improvement in its net foreign exchange reserve (NFER), which stood at $23.11 billion in 2024.

This was revealed same day the Lagos Chamber of Commerce and Industry (LCCI) advised the federal government to focus on addressing Nigeria’s perennial problem of poor power supply and high cost of energy.

According to a statement from the central bank that revealed the NFER, the figure was the highest level of FX accretion in three years, compared to $3.99 billion in 2023, $8.19 billion in 2022, and $14.59 billion in 2021.

The accretion reflected a remarkable improvement in the country’s external liquidity, reduced short-term obligations, and renewed investor confidence.

Gross external reserves also increased to $40.19 billion, compared to $33.22 billion in 2023.

Commenting on the results, CBN Governor, Mr. Olayemi Cardoso, declared that the improvement in net reserves was not accidental but, “outcome of deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability.”

He said, “We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms.”

NFER, which adjusts gross reserves to account for near-term liabilities such as FX swaps and forward contracts, is widely regarded as a more accurate indicator of the foreign exchange buffers available to meet immediate external obligations.

The increase in reserves reflects a combination of strategic measures undertaken by the CBN, including a deliberate and substantial reduction in short-term foreign exchange liabilities – notably swaps and forward obligations, the apex bank stated.

The strengthening was also spurred by policy actions to rebuild confidence in the FX market and increase reserve buffers, along with recent improved foreign exchange inflows – particularly from non-oil sources.

The outcome further reflected a stronger and more transparent reserve position that better equips the country to withstand external shocks.

The expansion occurred even as the CBN continues to reduce short-term liabilities, thereby improving the overall quality of the reserve position.

However, reserves have continued to strengthen in 2025.

While the first quarter figures reflected some seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt, underlying fundamentals remained intact.

The central bank added that reserves are expected to continue improving over the second quarter of the year.

The bank further anticipated a steady uptick in reserves, underpinned by improved oil production levels, and a more supporting export growth environment expected to boost non-oil FX earnings and diversify external inflows.

The CBN also reaffirmed its commitment to prudent reserve management, transparent reporting, and macroeconomic policies that support a stable exchange rate, attract investment, and build long-term resilience.

Meanwhile, the LCCI has advised the federal government to focus on addressing Nigeria’s perennial problem of poor power supply and high cost of energy.

This, the Chamber noted, would help create an enabling business environment where small businesses could thrive rather than majoring on providing short-term cash disbursement to small enterprises and vulnerable population.

The LCCI expressed these views yesterday in a statement titled, “Balancing Relief and Responsibility: The $500 million World Bank Loan and Nigeria’s Economic Future,” in which it raised concern that the recently approved $500 million World Bank’s loan for Nigeria might exasperate the country’s rising debt burden and expose Nigeria to fiscal vulnerabilities, weaker investors’ confidence and limited government’s ability to execute long-term economic reforms.

The chamber noted that although this intervention was aimed at supporting poor and vulnerable households and firms, it was imperative to state that its broader implications on businesses and the economy posed a concern to the business community.

The Director General of LCCI, Dr. Chinyere Almona, stated that: “The LCCI stands on the point that a more impactful stimulus for economic growth is that the government solves the perennial problem of poor power supply and high cost of energy and creates an enabling business environment where small businesses can thrive, creating jobs and generating revenues for the government.

“While the World Bank loan offers immediate relief, long-term economic resilience can only be achieved through a comprehensive strategy that fosters economic diversification, enhances productivity, and strengthens institutional frameworks for effective governance.”

Almona argued that from a business perspective, while targeted stimulus programs could offer temporary relief, structural economic challenges such as inadequate infrastructure, multiple taxations, and foreign exchange volatility still remained unaddressed.

She added that, “businesses require a stable operating environment, and while social welfare programs are essential, they must be complemented by policies that foster productivity, investment, and job creation.

“There is also concern about the efficiency of fund allocation and utilisation; given that only 16 per cent of previously approved World Bank’s loans under the current administration have been disbursed.

“This raises questions about the absorptive capacity of relevant institutions and the risk of funds being underutilised or mismanaged.” 

The LCCI noted that the loan’s direct impact on small businesses and vulnerable populations, through grants and livelihood support, presents a potential short-term stimulus that could enhance food security and community resilience, mitigating the effects of economic hardship at the grassroots level.

It, however, warned the government to consider carefully the broader macroeconomic effects of seeking external borrowing to provide short-tern economic stimulus in the face of Nigeria’s rising debt burden, particularly given the slow pace of disbursement and implementation of previously approved loans.

“With the World Bank’s share of Nigeria’s external debt reaching $17.32 billion, the question of debt sustainability becomes increasingly pressing.

“If not efficiently managed, additional borrowing could exacerbate fiscal vulnerabilities, weaken investor confidence, and limit the government’s ability to execute long-term economic reforms,” the chamber said.

Nevertheless, the LCCI recommended the following strategic approaches to the government to maximise the benefits of this loan while mitigating its associated risks.

It stated: “There must be a transparent and efficient disbursement mechanism that ensures funds reach the intended beneficiaries, particularly small businesses and vulnerable communities.

“A robust monitoring and evaluation framework should be established to track the impact of these funds and prevent misallocation.

“The government should adopt a prudent debt management strategy that prioritises concessional financing and ensures that borrowed funds are tied to projects with clear economic returns.”

It also recommended the strengthening of domestic revenue generation through tax reforms and expanding the productive base of the economy in order to reduce reliance on external borrowing.

“Beyond short-term palliatives, the government must implement structural reforms that create a conducive business environment. Policies should focus on improving infrastructure, ensuring policy consistency, and addressing foreign exchange challenges to support private sector growth and attract investment,” LCCI added.

•Says despite challenges, progress achieved in FX stabilisation, inflation reduction

James Emejo in Abuja

Governor of Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has expressed satisfaction over the growing investor confidence in the country’s economic trajectory.

Cardoso acknowledged recent challenges confronting the economy, but said progress had been recorded in stabilising the foreign exchange (FX) market as well as taming headline inflation.

Cardoso made the remarks while hosting a delegation of scholars from Harvard Kennedy School (HKS) as part of their Africa Trek, which included visits to Ghana and Nigeria.

He recalled recent visits by top executives from JP Morgan, Citi Bank, and International Monetary Fund (IMF), saying they further demonstrate that the country remains in the right direction.

He said, “These are individuals who base their decisions on data and trends, not sentiment. Their interest reaffirms that we are on the right path.”

In a statement, the CBN governor reaffirmed the bank’s commitment to fostering intellectual engagement and policy-driven solutions.

He emphasised the value of exchanging ideas and fostering partnerships to strengthen trust and understanding in Nigeria’s financial system.

Cardoso said, “As we reset the bank, we are committed to being a hub for thought leadership. The exposure you gain from institutions like Harvard is invaluable, and we see this as an opportunity to build long-term alliances.”

Cardoso is a HKS alumnus, and the first African elected to the global HKS Alumni Board of Directors, as well as a trustee of both the Harvard Club of Nigeria and the Harvard Kennedy School Alumni Association of Nigeria (HKSAAN).

In their remarks, President of HKSAAN, Ms. Adaora Ndukwe, and HKS Nigeria Trek Delegation Lead, Ms. Sheffy Kolade, both expressed appreciation to the CBN for hosting the delegation.

They commended the bank’s commitment to engaging with future policymakers and providing invaluable first-hand insights into Nigeria’s evolving economic landscape.

The Africa Trek initiative fosters direct interactions between emerging global leaders and key policymakers across the continent.

Through engagements with visionary leaders, it provides a platform for in-depth discussions on governance, innovation, economic development, financial stability, and the role of central banking in national development.

The visit marked the first time any Africa Trek delegation visited the apex bank, which further reinforced the bank’s dedication to knowledge exchange and strategic partnerships, CBN said.

•Clarifies re-uploaded inflation report, insists rebased estimates unchanged

James Emejo in Abuja

National Bureau of Statistics (NBS), yesterday, reaffirmed its commitment to transparency and quality data publication, promising to continue to provide technical explanations to aid public understanding of statistical outcomes.

NBS, in a statement by its acting Director, Communications and Public Relations, Mr. Folorunso Alesanmi, clarified that the rebased Consumer Price Index (CPI), which measured the rate of change in prices of goods and commodities, remained intact and unchanged from the estimates earlier published.

In February, NBS, following the CPI rebasing from 2009 base year to 2024, put headline inflation at 24.48 per cent in January 2025. Inflation further declined to 23.18 per cent in February, while the month-on-month stood at 2.44 per cent. 

The assurances came against the backdrop of an online media report, which raised concerns about data transparency and accuracy following a recent re-upload of the inflation report that excluded the historical series.

The historical spreadsheet, which was uploaded to the NBS website before it was removed, was given wrong interpretations by some stakeholders and users.

Alesanmi, while acknowledging concerns regarding the re-upload, clarified that the template erroneously uploaded was not the actual result, but more of a worksheet that had no impact on the final outcome.

He explained that the update was necessary due to the change in the base year for the CPI, making the old and new series not directly comparable.

Nonetheless, he said the historical data remained available in previous reports.

The NBS acting director said, “The rebased CPI adopts 2024 as the price reference period (base year), using a 12-month average of prices in 2024 rather than a single month.

“This re-referencing process ensures that the January 2025 index (and all the other months in 2025) can be compared to their corresponding preceding years to track year-on-year inflation trends accurately.

“The inflation figures released for December 2024 remain 34.80 per cent year-on-year (YoY) and 2.44 per cent month-on-month (MoM) as published.

“The old CPI series ended in December 2024, while the new series begins from January 2025.

“Month-on-Month inflation is calculated by comparing the computed index of the current month with that of the preceding month.”

He explained, “As a result, the MoM inflation rate for the new series officially began in February 2025 at 2.04 per cent.

“The 10.7 per cent inflation rate reported for January 2025 was not a MoM figure.

“Instead, it was derived from the all-items index minus 100 (110.68 – 100), representing the rate of change in the average prices of goods and services in January 2025 compared to the average prices throughout the year 2024.”

Alesanmi emphasised that the rebased CPI included about 500 new products, an updated classification system (13 divisions instead of 12), as well as improved compilation techniques.

He said, “As a result, some figures in the first month (January 2025) may appear different from past trends. However, these adjustments are expected when transitioning to a new CPI methodology, especially after a long interval between rebasing exercises.”

Alesanmi added that going forward, the NBS will publish both the new and old series to ensure users had access to complete information.

•Says public interest at centre of actions, operations

James Emejo in Abuja

The Executive Vice Chairman/Chief Executive, Federal Competition and Consumer Protection Commission (FCCPC), Mr. Tunji Bello, yesterday said Sections 17 and 18 of the Federal Competition and Consumer Protection Act (FCCPA) 2018 expressly grants the commission statutory authority to regulate competition and consumer protection across all sectors in line with global best practices.

He said the Act further mandates the commission to promote and protect the interests and welfare of consumers by ensuring fair competition and ethical business practices, including ensuring affordability and accessibility.

Speaking at a seminar to mark the 2025 World Consumer Day with the theme, “A Just Transition to a Sustainable Lifestyles” which was hosted by the commission in Abuja, Bello explained that sustainable choices should not be expensive or difficult to access, and should be within the reach of all consumers.

He stressed that the FCCPC was statutorily empowered to intervene in sectors of the economy to address consumer rights issues.

His clarification came against the backdrop of misconceptions of the role of FCCPC in some quarters. 

Bello said, “I observe this tendency among some of our commentators in the media space who misunderstand the provisions of the law and inadvertently mislead the public.

“To be sure, Sections 17 and 18 of the Federal Competition and Consumer Protection Act (FCCPA) 2018 expressly vest the Commission with the statutory authority to regulate competition and consumer protection across all sectors in our national life which is consistent global best practices.

“This notion was, in fact, recently affirmed by the court of competent jurisdiction. In one word, the law charges the FCCPC to champion the rights of consumers of goods and services in Nigeria.”

He added, “It is therefore, very disturbing to hear or read parochial arguments of those who, out of ignorance of the law, seek to erect walls of sophistry against FCCPC in its discharge of this clear mandate.

“The commission has never claimed or pretended to be a price control board. Rather, we get involved when the rights of consumers are breached or when the market is being manipulated in a manner that impedes fair competition.

“For instance, when you book a flight you are paying for a service. Assuming the affected airline fails to deliver the service paid for and you file a complaint with us, we are mandated by the law to champion your cause.

“Our inquiry under the circumstances has nothing to do with technical issues in the aviation section, but purely consumer issues.”

Continuing, he said, “Also, when the case of a substandard product is reported, there is of course consumer issue involved.

“Our intervention in the circumstances is not inquiring into the pharmaceutical composition of the drug at issue, but the right of the patient who gave out his or her hard-earned money in expectation of a remedy.

“Similarly when consumers are being exploited by providers of services, it is our responsibility to intervene.”

Nonetheless, he further clarified in all of its actions, that the commission was guided by the commitment to pursue public interest.

Recognising that the commission cannot further the advocacy alone, Bello urged all true patriots to join the crusade to protect the consumers and make the market fair and safe in Nigeria.

However, he said the notion of achieving a just transition to sustainable lifestyles, entails the provision of accurate information and raising awareness about the impact of their choices, so consumers can make informed decisions.

According to him, the notion also emphasises holding businesses accountable, and ensuring that industries comply with environmental and ethical standards while preventing deceptive marketing of so-called “green” products.

He said this year’s theme couldn’t be more apt considering the existential challenges facing humanity across the world at the moment.

Bello said, “Indeed, most countries are contending with inflationary trend which has been traced to the economic disruption occasioned by COVID 19 of 2020.

“Unfortunately, just before the COVID pains could heal came the Russian-Ukrainian war which brought fresh disruption to the global food supply chain, thus worsening the plight of consumers of goods and services.

“Against this backdrop, it is therefore, a matter of necessity that we rethink our choices and fashion new coping strategy to adapt to new realities”

He said, “Looking ahead, the world is undoubtedly moving towards a greener, more sustainable ways of living.

“The overarching challenge is ensuring that no one is left behind.

“Sustainability should not be a privilege for a few, but a right for all. As we celebrate the 2025 World Consumer Day, for us at the FCCPC, it is an opportunity to rededicate ourselves to championing the interests of the Nigerian Consumers.”

•Agbeluyi: digital tax reforms will boost revenue mobilisation, ease of doing business, reduce tax evasion

James Emejo in Abuja

The Executive Chairman, Federal Inland Revenue Service (FIRS), Dr. Zaccheus Adedeji, yesterday emphasised that domestic resource mobilisation remained crucial in achieving economic development and growth.

Adedeji spoke at the opening of the West Africa Tax Administration Forum Country Correspondent/Heads of Corporate Communications Departments Conference and WATAF Council meeting holding in Abuja.

He said the service was committed to supporting initiatives that drive tax policy development and capacity-building, not just in Nigeria but across the West African region.

He said the role of effective communication in tax administration cannot be overstated.

Adedeji’s remarks came on a day the President/Chairman of Council, Chartered Institute of Taxation of Nigeria (CITN), Mr. Samuel Agbeluyi, said the country’s tax infrastructures must evolve beyond traditional methods to smart, technology-driven frameworks that enhance revenue generation, plug leakages and promote voluntary tax compliance.

Speaking at the opening of the  the maiden ICT summit on taxation with the theme, “Building Smart Tax Infrastructure for Economic Growth” in Abuja, he said this was key to.ensuring that the Nigerian tax systems keep pace with the digital economy.

The FIRS chief executive, while addressing tax authorities from sister countries, said the Country Correspondents and Heads of Corporate Communications remained  frontline ambassadors of tax institutions, responsible for shaping narratives, clarifying policies, and fostering voluntary compliance.

Furthermore, he said the WATAF Council would deliberate on issues bordering on the institutional sustainability of WATAF, consider the WATAF progress report alongside carrying out other administrative overview of WATAF Secretariat’s operations.

Adedeji said, “Historically, Nigeria has always been at the forefront of promoting international tax cooperation and has been a key contributor to the development of the West African Tax Administration Forum (WATAF), providing technical assistance and capacity-building programmes to member countries.

“I encourage all participants to actively engage in discussions, leverage this gathering to build stronger professional networks, and commit to implementing the knowledge gained for the betterment of our tax systems.”

“Our country has also been at the forefront of promoting regional cooperation in tax administration, recognising the importance of collaboration in addressing common challenges.

“The FIRS remains committed to supporting initiatives that drive tax policy development and capacity-building, not just in Nigeria but across the West African region.

“We recognise the importance of domestic resource mobilisation in achieving economic development and growth.”

Nonetheless, Agbeluyi also stressed the need to stay attuned to the evolving regulatory landscape, adding that ongoing reforms by the Presidential Committee on Fiscal Policy and Tax Reforms was critical to the tax system.

He said technology was no longer a luxury but a necessity, adding that countries that have embraced digital tax reforms are reaping the benefits of increased revenue mobilisation, reduced tax evasion and improved ease of doing business.

He said, “Nigeria cannot afford to be left behind”.

The CITN President pointed out that as practitioners, “we play a critical role in interpreting these reforms and aligning our practices to support their strategic objectives. The CITN remains relentless in ensuring that our members are up to date and at the heart of these reforms.”

He said the summit will position the tax profession to lead in shaping the country’s economic future, adding that the council remained committed to fostering excellence in taxation practice in Nigeria.

He said, “This summit is a clear demonstration of our dedication to staying at the forefront of industry trends and developments.”

James Emejo in Abuja

Lagos-based investment firm, Yatsar Capital Partners, has announced the first close of the Yatsar Real Estate Private Equity (YREPE) Fund at N31 billion ($20 million).

This maiden fund had targeted N55 billion to be invested in grade-A income generating assets, including  demand-driven commercial development opportunities.

In a statement, Chief Executive, Yatsar Capital Partners, Obi Nwogugu, said, “We are excited to reach our first close and deeply grateful to our investors who have supported us in this journey.

“We are thankful for the partnership with BAT Nigeria in closing our first investment through the Rising Sun Building transaction.

“We look forward to playing a key role in channeling private capital into the compelling opportunities we see in the Nigerian market.”

 The firm prioritises a proactive approach to real estate investment, focusing on making informed decisions based on foresight and extensive experience to generate future value in properties.

YREPE is backed by Nigerian pension funds and insurance companies who are seeking a disciplined and low-risk approach to investing in the real estate asset class.

Along with the first close, YREPE also made its first investment in the sale and leaseback of the Rising Sun building, a class-A mixed use asset on Alfred Rewane Road in Lagos, Nigeria.

The building, which is located on the most sought-after office stretch in Nigeria, includes five floors of grade-A commercial office space, and seven floors of residential accommodation, all occupied by corporate tenants, the statement added.

��•Highest in Edo, Enugu, Sokoto, others

James Emejo in Abuja

The Consumer Price Index (CPI), which measures the rate of change in the prices of goods and services, further declined to 23.18 per cent in February, compared to 24.48 per cent in the preceding month, the National Bureau of Statistics (NBS) said yesterday.

Year-on-year, the headline inflation was 8.52 per cent lower than 31.70 per cent recorded in February 2024.

According to the CPI report for the review period, month-on-month, inflation stood at 2.04 per cent in February.

Year-on-year, food inflation dropped by 14.41 per cent to 23.51 per cent in February, compared to 37.92 per cent in the corresponding year.

NBS, however, pointed out that the significant decline in food inflation was technically due to the change in the base year, following the recent rebasing of CPI from 2009 to 2024.

Nonetheless, the food index month-on-month, stood at 1.67 per cent, with the average annual rate for the 12 months ending February 2025 over the previous 12-month average at 34.74 per cent, compared to 30.07 per cent in February last year.

NBS stated, “Compared to the month of January 2025, there was an observed decline in the average prices of food items like yam tuber, potatoes, soya beans, flour of maize/cornmeal, cassava, bambara beans (dried), etc.”

Core inflation, which excludes the prices of volatile agricultural produces and energy, also declined by 2.12 per cent to 23.01 per cent, year-on-year in February 2025, compared to the 25.13 per cent in February 2024.

On a month-on-month basis, the core index stood at 2.52 per cent in February while the average 12-month annual inflation rate was 25.33 per cent for the 12 months ending February 2025, higher than 21.72 per cent in February 2024.

The statistical agency further noted that food and non-alcoholic beverages; restaurants and accommodation services; and transport contributed 9.28 per cent, 2.99 per cent and 2.47 per cent, respectfully, to inflation.

Other contributors were housing, water, electricity, gas, and other fuels, which accounted for 1.95 per cent of inflationary concerns.

Education services contributed 1.44 per  cent, health 1.40 per cent, clothing and footwear 1.17 per cent, information and communication 0.76 per cent, and personal care, social protection, and miscellaneous goods and services 0.76 per cent.

There were also furnishing, household equipment, and routine household maintenance 0.69 per cent; insurance and financial services 0.11 per cent; and alcoholic beverages, tobacco, recreation, sport, and culture, sport, and culture 0.07 per cent.

Year-on-year, in February 2025, urban inflation declined to 25.15 per cent, compared to 33.66 per cent in February 2024. On a month-on-month basis, the urban index stood at 2.40 per cent.

Similarly, rural inflation dropped to 19.89 per cent year-on-year, from 29.99 per cent in February 2024. Month-on-month, the rural index stood at 1.16 per cent in the review month.

At state level, headline inflation was highest in Edo (33.59 per cent), Enugu (30.72 per cent), and Sokoto (30.19 per cent), while Kaduna (15.45 per cent), Akwa Ibom (15.53 per cent), and Plateau (15.74 per cent) recorded the lowest year-on-year rise.

Month-on-month, however, inflation was highest in Sokoto (11.98 per cent), Kogi (11.38 per cent), and Edo (8.87 per cent), while Kaduna (-8.83 per cent), Ondo (-4.78 per cent) and Plateau (-3.73 per cent) recorded the lowest rise.

Year-on-year, the food index was highest in Sokoto (38.34 per cent), Edo (35.08 per cent), Nasarawa (33.53 per cent), while Adamawa (12.18 per cent), Ondo (13.66 per cent), and Oyo (15.55 per cent) recorded the slowest increase.

Month-on-month, food inflation was highest in Sokoto (18.83 per cent), Nasarawa (15.32 per cent), and Kogi (11.65 per cent), while Ondo (-9.81 per cent), Kaduna (-8.91 per cent), and Oyo (-6.42 per cent) recorded decline.