Flutterwave, Africa’s leading payments technology company, has been named to CNBC and Statista’s 2025 World’s Top Fintech Companies list.
The recognition highlights Flutterwave’s continued commitment to innovation, operational excellence, and building technology that powers seamless payments and cross-border commerce across Africa and beyond.

The CNBC World’s Top Fintech Companies list is an annual global ranking produced by CNBC in partnership with leading market research firm Statista. The list recognises the world’s most impactful fintech companies across a range of categories, celebrating organizations that are driving innovation, delivering customer value, and shaping the future of financial services.

Flutterwave’s inclusion reflects a decade of building financial infrastructure that connects African businesses to the global economy.
Today, the company operates in more than 30 African countries, supports payments in over 50 currencies, and has processed more than one billion transactions worth over $50 billion.

Through products including Flutterwave for ������Ƶ and Send App, the company continues to simplify payments, facilitate cross-border trade, and expand financial access for businesses and individuals around the world. The recognition follows Flutterwave’s inclusion in the 2025 TIME100 Most Influential Companies list, reinforcing the company’s growing global reputation for innovation and its role in shaping the future of financial services.

Commenting on the recognition, Head of Marketing at Flutterwave, Yewande Akomolafe-Kalu, said: “Being recognised by CNBC among the world’s leading fintech companies is a testament to the work our team has done to build technology that solves real problems for businesses and individuals. As we celebrate ten years of Flutterwave, this recognition is a reflection of how far we’ve come and inspires us to continue building financial solutions that help businesses grow, scale globally, and unlock new opportunities.”

As Flutterwave enters its second decade, the company is expanding beyond payments to help businesses do more with their money. Through the acquisition of open banking startup Mono, a Nigerian Microfinance Banking Licence, stablecoin-powered solutions developed in partnership with Polygon and Turnkey, and a growing suite of financial products, Flutterwave is enabling businesses to bank, manage, move, and grow their money from a single platform.

Backed by strategic investments from Ripple and Circle, Flutterwave is accelerating its vision of connecting Africa to the world and the world to Africa. By making it easier for businesses to trade across borders, access global markets, and participate in the digital economy, the company is helping unlock the next chapter of Africa’s economic growth.

Bolanle Austen-Peters Productions (BAP Productions) has announced the London debut of its award-winning stage production, ‘Dear Kaffy: Diary of a Single Woman,’ as part of its continued effort to showcase contemporary African stories on the global stage.
The critically acclaimed play will be staged at the Shaw Theatre, London, from August 7th to 9th, 2026, with two performances daily at 3:00 p.m. and 7:00 p.m.

Following successful performances in Lagos and South Africa, the production is set to make its highly anticipated United Kingdom premiere, bringing what the producers describe as an authentic, witty and emotionally compelling Nigerian story to international audiences.
According to a statement, at the heart of the production is Kikelomo Olota (Kike), a successful 35-year-old woman navigating the complexities of love, family expectations, self-discovery and societal pressures in contemporary Lagos.

“As Kike journeys through a series of relationships, she finds herself torn between meeting societal expectations and pursuing the life she truly desires. Through humour, heartbreak, music and introspection, the play explores universal themes of identity, womanhood, love and authenticity,” the statement added.

According to the producers, while the story is deeply rooted in Nigerian culture, its themes resonate with audiences across the world, particularly among members of the African diaspora, reflecting the challenges many women face in balancing personal ambition, cultural expectations and the pursuit of happiness.

Produced by BAP Productions, the creative company founded by renowned producer and director Bolanle Austen-Peters, Dear Kaffy is the latest addition to the company’s growing portfolio of internationally acclaimed productions.

Over the years, BAP Productions has earned a reputation for redefining Nigeria’s theatre landscape through celebrated productions such as Saro the Musical, Wakaa! The Musical, Fela and the Kalakuta Queens, Motherland The Musical and Death and the King’s Horseman, among others.
The company said the London presentation of Dear Kaffy marks another significant milestone in its international expansion and reinforces its commitment to taking African narratives to some of the world’s most prestigious stages.

Speaking on the forthcoming production, Austen-Peters said the company was excited to introduce the play to UK audiences.

“We are delighted to bring Dear Kaffy to London. This is a story about self-worth, resilience and finding the courage to define your own path. While Kike’s story is rooted in Lagos, her experiences are universal. We look forward to sharing this production with audiences in the UK and celebrating the richness of African storytelling on a global stage,” she said.

The performances will take place at the Shaw Theatre, 100–110 Euston Road, London NW1 2AJ.

Tickets are available in three categories: Standard (£45), Premium (£70) and VIP (£100), with organisers advising theatre enthusiasts to book early due to expected high demand.

The London debut of Dear Kaffy: Diary of a Single Woman is expected to further strengthen BAP Productions’ reputation as one of Africa’s foremost theatre companies committed to exporting compelling African stories to global audiences.

Flutterwave, Africa’s leading payments technology company has announced a strategic investment from Circle Ventures, the corporate venture arm of Circle Internet Group, Inc. (Circle).

This followed Flutterwave’s participation in the launch of Circle Payments Network in 2025.

This investment supports Flutterwave’s effort to embed USDC settlement directly into the payment flows businesses already use today. Merchants can collect locally and settle in USDC, reducing delays and costs while enabling near-instant settlement beyond traditional banking hours.

At the core of this investment is Flutterwave’s strategy to position stablecoins as critical financial infrastructure to provide reliable and fast settlements in Africa. By supporting USDC settlement within a compliance-first framework, Flutterwave enables blockchain-based payments that align with existing regulatory requirements and enterprise operating standards.

Commenting, Olugbenga “GB” Agboola, Founder and CEO of Flutterwave, said: “This support from Circle Ventures is about backing the rails that will power the next era of global money movement from Africa. Stablecoins like USDC are no longer an experiment; they are becoming core financial infrastructure.

“By embedding USDC settlement into our current payments infrastructure, we are building a system that lets businesses move money at the speed of the internet. This fundamentally changes how payments from Africa connect to the world and it positions Flutterwave as the default stablecoin gateway for the continent.”

Global stablecoin circulation currently exceeds $300 billion, with Africa emerging as one of the fastest-growing regions for its adoption. By expanding its platform into a multi-rail payment system that includes fiat, cards, bank transfers and stablecoins, Flutterwave is enabling businesses to choose the fastest, cheapest and most reliable settlement option for their needs.

Flutterwave, Africa’s leading payments technology company has announced a strategic investment from Circle Ventures, the corporate venture arm of Circle Internet Group, Inc. (Circle).

This followed Flutterwave’s participation in the launch of Circle Payments Network in 2025.

This investment supports Flutterwave’s effort to embed USDC settlement directly into the payment flows businesses already use today. Merchants can collect locally and settle in USDC, reducing delays and costs while enabling near-instant settlement beyond traditional banking hours.

At the core of this investment is Flutterwave’s strategy to position stablecoins as critical financial infrastructure to provide reliable and fast settlements in Africa. By supporting USDC settlement within a compliance-first framework, Flutterwave enables blockchain-based payments that align with existing regulatory requirements and enterprise operating stand

Raheem Akingbolu

Months after a Lagos Lanlord, Mr. Lawrence Onwukwem and his accomplice; Mr. Davies Ijele, Mr. Sodiq Kazeem and Ms. Peace Igbo, were jailed for contempt of court, questions are still being asked on why three of the suspects didn’t turn in.

Recall that in what looked like a syndicate, a Lagos Lanlord, Onwukwem and his gang, who are believed to specialise in swindling innocent Nigerians through properties in their care, ran into trouble and jailed for contempt of court after their illegal eviction of a couple, Mr. Olusola Alabi and his wife, Mrs. Olufunmilola Alabi, who rented an apartment from them and were summarily frustrated.

However, while Kazeem is currently serving his jail term, the trio of Onwukwen, Ijele and Igbo have since remained in the hiding.

Like a thief whose time of reckoning has come, Onwukwem, Ijele, Kazeem, and Igbo, who operates under Green Birch Tech Ltd, was recently jailed for six months each by a Lagos Chief Magistrates’ Court, sitting in Eti-Osa for contempt of court.

The imprisonment of the defendants is due to the contemptuous order of the court. The court held them in contempt, which they displayed all through the court proceedings.

Meanwhile, Ijele who is also the Publicity Secretary of Social Democratic Party (SDP) in Kogi State is believed to have leveraged his well connected network within the police and other security agencies to get undue protection for himself and two others while Kazeem is currently wallowing in jail. As part of his moves to win over the police, the politician recently inaugurated an image laundry Non Governmental Organisation, known as Police Integrity Movement for the Nigerian Police and has been featuring regularly on TV stations to champion the campaign. This is believed to be a means of swaying the police, especially with his multiple records of crimes.

In the charges, marked MISC/MCE/07/2023, the court invoked Section 44(1)(a) of the Tenancy Law of Lagos State 2011 as amended against the Defendants by convicting the Directors of the 1st Defendant (including the 2nd Defendant, Mr. Lawrence Onwukwem (Managing Director) and Mr. Isaiah Davies liele) and one Sodiq Kazeem, the Estate Manager and one Ms. Chidinmma Igbo, all of the 1st Defendant, for forceful ejection of the Claimant/Applicant for the three (3) Bedroom flat and one (1) Room Boys Quarters with appurtenances situate, lying and being at Block A, Flat 3, No. 96B, Ladipo Omotosho Cole Street, Lekki I, Eti-Osa, Lagos State held by the Claimant/Applicant as a yearly tenant of the 1st Defendant/Respondent by unlawfully trespassing into the said Apartment, forcing the door open, and removing the Claimant's furniture and electronics, beddings, refrigerator, air conditioners and gas cooker with gas cylinder, etc. and changing the keys to the entrance door, without any Lawful authority of any Order of any Court of competent jurisdiction, whilst the Claimant's Suit No: MISC/MCE/07/2023: and the 1st Defendant/Respondent's Suit No: MCE165/CIV/2024 were pending before the Court.


Delivering the judgement, the Chief Magistrate, Kikelomo Olaiya Doja-Ojo, on June 5, 2025, said that Lawrence Onwukwem, Hon. Davies Ijele, Mr Sodiq Kazeem and Ms Peace Chidinma Igbo, were to be sentenced to six months in correctional centre for continuously flaunting the order of the court while also mandated to pay the sum of N250,000 each to the court.


“The claimant is to be restored back to possession. All her belongings removed are to be returned to her immediately,” the CTC read.

Meanwhile, since the court judgement, the couple claimed that only Kazeem is already serving the jail term at Ikoyi Correctional Centre, while the other three have since gone into hiding.


 Reacting to the judgement, the couple said that disputes arose following an alleged breach of the tenancy agreement by the landlord, prompting Mrs. Alabi to seek legal redress in court.


The couple said that while the tenancy matter was still pending in court, Mr. Onwukwem and his partners unlawfully broke into the apartment, removed their properties valued at N25million, and subsequently rented out the flat to another tenant.


 When this reporter reached out to Mr Lawrence and Ijele for comments, their lines were unreachable.

 However, Igbo denied allegations that she was arrested and charged to court for failing to produce Mr Kazeem.

She refuted claims that she stood as surety for Kaeem , insisting that she never signed any legal documents in that capacity.

  “They have spoilt my name and career. I don’t know how to reach them. They have issue with a particular person and why involving me instead of meeting those concerned directly. I know nothing about it,” she said.

“For the record, I didn’t sign in as a surety…I was working as a secretary and HR for the firm. I was not a lawyer in that instance. I was in law school in 2021”

She, however, acknowledged that steps have been taken to address the matter, including efforts to obtain a remand order.

Nigeria’s first ever podcast and storytelling festival, PodFest Naija – A Festival of Stories, made a landmark debut on Friday, October 10, 2025, in Lagos, drawing over 1,500 creators, storytellers, brands, and policymakers for a day of powerful conversations, cultural showcases, and innovation.
Curated by The Muvmnt Studio in partnership with Eventful, the festival delivered on its promise to bring Nigeria’s most influential voices together to celebrate storytelling, collaborate across industries, innovate new formats, and learn from leading voices shaping the future.
From live podcast recordings to interactive brand activations, six themed stages, and a major masterclass on monetization, the festival became the cultural and creative heartbeat of Lagos for a day.

In her keynote address, Minister Hannatu Musa Musawa, Minister of Art, Culture, and the Creative Economy, emphasised the growing importance of podcasting in amplifying Nigeria’s creative voice globally.

“Podcasting has become one of the most powerful tools for projecting our soft power and amplifying Nigerian creativity to the world,” the Minister stated. “It is a veritable medium that transcends borders, democratising how stories are told and who gets to tell them.”

She further highlighted podcasting as a strategic tool for youth engagement and job creation.

“Our young people are not just listeners. They are creators. They are hosts. They are writers. They are sound engineers, researchers and digital entrepreneurs.
Everything that speaks to that value chain from the bottom to the up. I think podcasting covers everything. Mr. President is really committed to looking at how we can fortify the future of the young people. And the only way that we can do that is by absorbing as many young people into the job market as possible.”

Tosin Adefeko, Curator of PodFest Naija and CEO of AT3 Resources – The Muvmnt Agency, reflected on the festival’s journey and purpose:

“When we started this journey, our vision was simple: to tell better stories. Over time, we realized that everyone was working in silos, there was no platform bringing the tribe together. We knew something had to change.”

“Podfest Naija was born out of that realisation. It’s a festival of stories, a creative convergence designed to celebrate our voices, collaborate across communities, innovate in how stories are told, and learn from one another. Whether we like it or not, the podcast ecosystem is here to stay, and we intend to stand at the forefront of that movement.”

The festival’s lineup featured over 40 storytellers and cultural icons, including Chude Jideonwo, Tunde Onakoya, Adaora Mbelu, Rufai Oseni, Morayo Afolabi-Brown, Masoyinbo and many others, who led conversations that cut across generations, genres, and industries.
Major brands including Coca-Cola, Sterling Bank, UAC Foods, Bet9ja, Crown Flour Mills, and others powered immersive activations throughout the venue, reinforcing the intersection between storytelling, culture, and brands.

One of the day’s most anticipated moments was the unveiling of “The Next Big Podcaster,” an initiative by The Muvmnt Studio to spotlight emerging talent set to redefine the podcast space.
Pearllie Hart was announced live on stage as the winner, positioning her as a podcaster to watch under The Muvmnt Studio’s spotlight.
As Nigeria cements its place in the global creative landscape, PodFest Naija stands as a rallying point for creators, policymakers, and brands to celebrate creativity, collaborate on ideas, innovate formats, and learn from shared experiences, shaping narratives that travel beyond borders.

Obinna Chima

The Nigerian banking sector stands at a critical crossroads as shifting customer demographics, digital disruption, and evolving lifestyle preferences continue to reshape expectations, a new report has warned.

It stressed that traditional banking models may no longer be sufficient to serve an increasingly youthful, tech-savvy, and experience-driven customer base.

With Gen Z and millennials rapidly becoming the dominant segment in financial services consumption, analysts at Proshare Limited, a research and business information organisation, in a report titled: ‘Tier 1 Banks Report: Getting Bigger, Braver, and Dominant – The Class of 2025,’ launched in Lagos, yesterday, urged to rethink, remodel, and restrategise their operations to remain competitive and relevant in a fast-changing landscape.

It pointed out that the now larger banks would need to meet “the requirements of baby boomers who are wealthy but now in retirement or preparing to retire, and the millennials and Gen Zs that are growing new wealth from different economic sectors and business channels.”

It added: “For example, several young Nigerians are generating money from software development and coding skills, therefore, banks will need to identify the needs of these digital natives and design methods of supporting them.

“Beyond programmers and software developers, Nigeria is witnessing an explosion of young talents in music and movies, these gifted individuals require a bouquet of banking services ranging from personal financial management, small and medium enterprise funding, to wealth management and assurance services.”

The Proshare report suggested that the now “bigger-sized” banks need to be imaginative, agile, and flexible if they are going to support the scaling up of the Nigerian economy into a $1 trillion continental behemoth by 2030, as envisioned by the federal government.

It further pointed out that scaling up banking sector activities over the next half decade will align with the growth aspirations of the federal government, but would require local banks to deconstruct Nigeria’s 46 sectors into what Proshare researchers identified as 14 sub-economies.

With increasingly larger equity bases and untroubled by liquidity and the cost of bank deposits, banks are expected to find more creative ways of offering medium to long-term financing options to emerging growth sectors as they rebalance their lending portfolios, it noted.

Proshare analysts believe that sub-economies that may benefit from the recapitalisation of banks include, but not limited to, the marine and blue economy, the entertainment and arts economy, the hospitality and real estate economy, and the mineral mining and energy economies.

“With an avalanche of sectoral data and greater proficiency in using Artificial Intelligence (AI), credit decision-making could be better and faster. Upscaling the interaction between technology and ‘fuzzy’ human logic and knowledge should lead to clever lending outcomes. The transition to ‘headless’ banking, for example, would improve both frontend and backend banking operations

Banking as a service (BaaS) is becoming an increasingly dominant theme in the financial services sector. Banks are transitioning from brick-and-mortar service providers to digital intermediaries between customers, retail vendors, wholesale providers, and manufacturers. The whole commercial economic ecosystem is shifting to digital platforms to improve efficiency, reduce costs, and meet customer service expectations.

“Banks’ digital incomes as a proportion of their gross earnings have steadily risen, with some banks growing faster than others. In this report, the analysts note that traditional bank service delivery has gone from face-to-face credit and non-credit service administration to digital platforms for the processing of specific customer requests.

“If all loan application spreadsheet fields are filled, banks can verify the data and embark on a physical inspection of commercial or production sites, Credit Appraisal Memoranda (CAM) are faster to process, and loan approval mandates are easier to give.

“The new digital realities enable banks to offer their customers improved service journey experiences. This means that banks with better technology attract improved patronage, generate higher earnings, and provide their investors with superior equity returns (ROE),” it stated.

At a time of banking recapitalisation, the report highlighted that banks are forced to make certain strategic decisions, some of which it listed to include: “Grow the business organically or grow inorganically, which means that a bank could grow its business by setting up new branches, or it could simply take over the branches of other banks it acquires. Both approaches have their benefits and costs.

“Create uncommon relationships with fintech companies in an environment of ‘Co-opetition’ or cooperating while competing or acquire fintech expertise and domesticate it within the bank itself as a wholly owned foundry.

“Choose between a national or international license. This has become a knotty problem. While the prestige that comes with an international authorisation is admirable, the cost could be weighty. A Nigerian bank with a national license would need a tier 1 share capital of N200 billion, while an international license would require a tier 1 share capital of N500 billion.

“The problem here is about business scale and potential ROE and return on capital employed (ROCE). The larger the bank capital, the larger the required returns on business activities. Banks may need to balance the pressure for higher earnings with the state of growth of the overall economy and the impact high interest rates have on business investment and development.”

In his opening remarks at the event, the Chairman and Founder, Mr. OlufemiAwoyemi, said: “Earlier this year, at the launch of our Nigeria Capital Market Report on January 15, 2025, I had highlighted the importance of addressing a crisis of confidence in the economy.

“I observed then that ‘the difference between those who succeed and those who do not, is revealed in how the sovereign strategy, structure, and systems are designed to help the people overcome the difficult times.

“Those without a strategy do not have a destination, those without structure do not have an implementation spine, and those without a resilient system cannot go far. We now have a pathway for Nigeria, and despite the gloom, we appear primed to confront the hard choices needed to deliver the change we seek; and for those who desire growth, pursuing purpose over popularity must be the basis of engagement.

“My prognosis still stands: As I pointed out earlier in January 2025, for the economy to benefit the largest number of citizens equitably, ‘It is clear that the time has come for those of us in the private sector to seek a new way to engage – a mind shift where our truths must be delivered through a solutions-based mindset.’

“The need for this mental shift has set the tone for Proshare’s continued interrogation of data to gather and process the correct numbers and narratives, providing an appropriate analytical interpretation of business facts distinct from fiction.”

Obinna Chima

Dignitaries from across Nigeria’s banking, business and politics spheres gathered yesterday at a requiem mass at the Catholic Church of the Assumption, Falomo, Lagos, to pay their final respects to deceased boardroom guru and founder of the defunct Diamond Bank, Mr. Pascal Gabriel Dozie.

Among the notable figures present were former Vice President Yemi Osinbajo; presidential candidate of Labour Party in the 2023 election and former Anambra State Governor, Peter Obi; former Ekiti State Governor, Dr. Kayode Fayemi;  Managing Director of MTN Nigeria, Karl Toriola and other executives of the telecoms company; Chairman of Access Holdings, Aigboje Aig-Imoukhuede; Managing Director of Access Bank, Roosevelt Ogbonna; Managing Director of Afrinvest, Ike Chioke; former Lagos State gubernatorial candidate, Jimi Agbaje, among several other executives and entrepreneurs.

Dozie, 85-years, the pioneer Chairman of MTN Nigeria, died on 8th April 2025, a day before his 86th birthday.

In his homily, the Parish Priest, Catholic Church of the Assumption, Rev. Father Francis Ike, spoke about the dedication of the deceased to his faith. He also narrated how arrangements had been made for the celebration of his 86th birthday.

“Pascal was very generous and passionate towards the needy. Pascal was so easy to get along with and was also friendly. He was very energetic and had a deep vision and passion to achieve great strides in life. Pascal was a friend to all and sundry. The turnout at his service of songs and his requiem mass this morning is testimony to that.

“Pascal lived a life of simplicity, generosity, and humility. He was always there for the less privileged, and we pray that his good deeds will bring him heavenly rewards through Christ Our Lord. Pascal will be loved and remembered even in death, for the good he did and the many souls he touched. He was an icon, he lived an adorable life, and recorded landmarks in the various positions that he led. He will be remembered for the footprints he left on the sands of time,” the priest said.

Preaching further to the congregation, he stressed the need for all to embrace humility just like the deceased, saying that was why he had a peaceful death.

“This life is a stage, and we are all here acting our part. We would all leave this stage. Pascal Dozie has played his part, and he has left the stage. You and I are on this stage now. This earth is not our home, but a marketplace. Heaven is our eternal home, therefore, we will go home one day,” he added.

In his remarks, the first son of the deceased and founder of Sparkle, Uzoma Dozie, thanked everyone for taking out time to honour his father despite their busy schedules.

Dozie, born April 9, 1939, in Egbu, Owerri, Imo State, began his educational journey at Our Lady’s School in Emekuku, near Owerri, and advanced to the prestigious London School of Economics, where he earned a degree in Economics and a master’s in Administrative Science.

He established Diamond Bank at the age of 51, and through the financial institution that was dominant in retail banking, he made his most enduring mark.

At a time when banking in Nigeria was viewed with scepticism, he envisioned a customer-friendly, technology-driven financial institution. Diamond Bank overtime became a benchmark for innovation and integrity in the Nigerian financial space.

Under his leadership, Diamond Bank attracted top talent, pioneered electronic banking innovations, and set new standards for customer service. In 2006, he handed over leadership to his son, Uzoma Dozie, becoming one of the first Nigerian banking founders to successfully implement a family-led succession plan.

The deceased played a pivotal role in the early days of Nigeria’s mobile telecommunications revolution and was instrumental to the launch of MTN Nigeria, serving as its pioneer chairman. His leadership style was marked by humility, integrity, and long-term vision.

He was decorated with the national honour of Commander of the Order of the Niger (CON) in recognition of his contributions to Nigeria’s economic and financial sector.

The Deputy Governor of the Central Bank of Nigeria (CBN), Emem Usoro, has lost her mother, Mrs. Eno Nnana Usoro, who passed away peacefully in Abuja. She was 78.

Born on June 30, 1946, Mrs. Usoro’s death was revealed by family sources, who disclosed that she passed away on Tuesday, April 29, 2025.
A formal family statement will be released after consultations.

•Monetary Fund reiterates support for Nigeria’s economic reforms

•Downgrades country’s 2025 growth outlook to 3%, 2.7% for  2026

•Says Nigeria’s Eurobond return reflects renewed investor confidence

•Urges vigilance as global risks pressure spreads

Obina Chima, Eromosele Abiodun and Nume Ekeghe in Washington DC

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, the Governor; Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso and Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr . Wale Edun, have pledged to continue to work together to scale up social spending, improve food security and promote inclusive growth in Nigeria.

Georgieva, also reiterated her support for Nigeria’s economic reforms.

The IMF boss said these at a closed-door meeting yesterday, with Cardoso, Edun, Deputy Governors of the CBN and some top officials of the Ministry of Finance, on the sidelines of the ongoing IMF/World Bank meetings in Washington DC.

“Great meeting with Nigeria @FinMinNigeria Minister Edun and @cenbank Governor Cardoso. I applauded the Nigerian government’s economic reform efforts. We strongly agreed on the need to scale up social spending, continue efforts to improve food security and promote inclusive growth,” Georgieva wrote on her official X handle.

Meanwhile, the IMF has revised Nigeria’s economic growth projections for 2025 and 2026 downwards, reflecting growing global uncertainties and sustained weaknesses in oil prices that continue to weigh heavily on Africa’s largest economy.

According to the April 2025 edition of the World Economic Outlook (WEO) released at the ongoing IMF/World Bank Spring Meetings in Washington DC, Nigeria’s growth was now expected to grow by three percent in 2025 and 2.7 percent in 2026, down from its WEO forecasts of 3.2 percent and 3 percent, respectively, issued in January.

The Fund attributed the downgrade to a mix of domestic challenges and worsening global conditions, including trade tensions, slowing demand from advanced economies, and a sharp decline in crude oil prices.

United States President Donald Trump had slammed reciprocal tariffs on all trading partners, claiming that the U.S. had suffered from unfair trading relations with most of its partners.

Specifically, the Trump administration had slammed 14 percent tariff on Nigerian goods. The measure had prompted varied responses and sparked retaliatory actions from other countries.

It had also generated shock waves across the globe, leading to turmoil in financial markets across the world.

Owing to this, the IMF in its latest WEO, noted that the downgrade of Nigeria’s growth projection marked a reversal from the estimated 3.4 percent growth Nigeria achieved in 2024, suggesting that the initial post-pandemic recovery momentum may be losing steam.

The IMF however warned that without robust policy responses, Nigeria may struggle to maintain macroeconomic stability in the face of external headwinds.

Furthermore, it noted that growth across Sub-Saharan Africa was projected to ease slightly, dipping from four percent in 2024,  to 3.8 percent in 2025, before staging a modest rebound to 4.2 percent in 2026.

Speaking at press briefing on WEO, Economic Counsellor and Director Research Department, IMF,  Pierre-Olivier Gourinchas, said: “Regional growth in Sub Saharan Africa improved significantly last year to 4 per cent and it will ease in 2025 and this is in line with a softer global outlook.

“And so, we are seeing the same forces at play in the region as we are seeing more globally, and a downturn in the downward revision and no projection that is of the similar magnitude at about 0.4 percentage points.”

Also, in a separate report – the Global Financial Stability Report (GFSR) – also released yesterday, the IMF noted that Nigeria’s return to the international debt market in late 2024, its first eurobond issuance since 2022,  marked a notable shift in investor sentiment towards frontier economies, buoyed by macroeconomic reforms and improved credit profiles.

It stated: “For sub-Saharan Africa, growth is expected to decline slightly from 4 percent in 2024 to 3.8 per cent in 2025 and recover modestly in 2026, lifting to 4.2 percent. Among the larger economies, the growth forecast in Nigeria is revised downward by 0.2 percentage point for 2025 and 0.3 percentage point for 2026, owing to lower oil prices.”

It pointed out that inflation remains a significant hurdle for Nigeria.

Consumer prices surged by 33.2 per cent in 2024, while it projected 26.5 for 2025 and 37 per cent for 2026.

“Projections suggest a decline to 13.3 per cent in 2025 and a further slight decrease to 12.9 percent in 2026 for Sub-Saharan Africa overall,” it added.

On a more positive note, it noted that Nigeria’s current account balance was projected to show a surplus, although declining from 9.1 percent of GDP in 2024, to 6.9 per cent in 2025 and 5.2 per cent in 2026. This surplus offers some protection against external economic shocks for Nigeria.

Looking at the broader Sub-Saharan Africa region, growth was expected to decline slightly from 4.0 percent in 2024 to 3.8 percent in 2025 before a modest recovery to 4.2 percent in 2026.

The GFSR added:  “Sovereign eurobond spreads for frontier economies narrowed in 2024 and at the start of 2025, with macrofinancial reforms, progress on debt restructuring, and credit rating upgrades in several countries all having contributed to this narrowing.

“Examples include progress on debt restructuring in Ethiopia and Ghana, and foreign exchange market reforms in Nigeria.

“Frontier economies were able to issue foreign currency debt at relatively modest yields, with total issuance during the first quarter of this year amounting to roughly half of total issuance in 2024.

“Nigeria returned to the Eurobond market in late 2024 for the first time since 2022 and Egypt returned in January 2025 for the first time since early 2023.”

The fund also commended Nigeria’s recent macroeconomic reforms, particularly its foreign exchange liberalisation, as contributing to improved investor sentiment. However, the Fund cautioned that growing volatility in global financial markets may pose renewed challenges for the West African economy.

Assistant Director, Monetary and Capital Markets Department, IMF, Jason Wu in response to a ������Ƶ question said: “ In the case of Nigeria, macroeconomics has held up,  GDP growth has been fairly consistent, and inflation has been coming down, and earlier this year, we have seen Nigerian sovereign credit spreads lowering. I think the reforms that authorities have done, including the liberalisation of exchange rates, has helped in that regard.

“During a time when global financial markets is volatile and risk appetite in particular is wavering, this is when we might see increases in sovereign spreads that will challenge the external picture for Nigeria as well as other frontier economies.

“So, for example, Nigeria’s sovereign spread has increased in recent weeks as stock markets globally has declined. The other challenge, of course, is for large commodity exporters like Nigeria. You know, if trade tensions are going to lead to lower global demand for commodities, this will obviously weigh on revenue that it will receive.

“So, I think both of those developments would advise that authorities remain quite vigilant to these developments and take appropriate policies to counter.”

•Hails CBN’s tight monetary policy stance

•Advises govts to intensify domestic revenue mobilisation

•Prescribes targeted social interventions

•FG announces historic 6,003MW peak power generation

•Reiterates need for cost-reflective electricity tariffs

Obinna Chima in Lagos and Ndubuisi Francis, Emmanuel Addeh in Abuja
International Monetary Fund (IMF) allayed fears that the country was on the verge of sliding into a debt trap, saying Nigeria’s debt level is “moderate and not high risk”. IMF’s First Deputy Managing Director, Gita Gopinath, said this during an exclusive interview with ������Ƶ in Lagos.
During a meeting with Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, in his office in Abuja, Gopinath acknowledged the economic challenges currently facing Nigeria. He underscored the need for the federal government to embrace targeted social interventions.

In another development, the federal government announced the achievement of 6,003 megawatts (mw) peak power generation, the highest electricity generation ever recorded in the country.
Nigeria’s total public debt had risen to N142.3 trillion as of September 30, 2024, compared to N134.3 trillion in June 2024. The rise in the country’s debt level (external and domestic) was as a result of the exchange rate devaluation.

Data from the Debt Management Office had shown that external debt in dollar terms increased marginally from $42.90 billion in June to $43.03 billion in September in naira terms, while external debt rose by 9.22 per cent, from N63.07 trillion to N68.89 trillion in the comparable period.
A “moderate debt level” means a level of debt considered manageable and sustainable, where the amount of debt owed by a country is not so high that it significantly impacts its ability to meet its financial obligations while still allowing for some flexibility in spending.

Responding to a question on how sustainable the country’s debt level was, Gopinath said, “We (IMF) assess debt sustainability for countries every year and we did this for Nigeria in our report for 2024. Our assessment was that the risk of sovereign stress for Nigeria is moderate and not high risk.”

When asked if at moderate debt level, it meant the country had enough room to take more debts, Gopinath said, “No, I will not go that path.”
According to her, “The point is that you want to stay moderate and you don’t want to move into a high risk debt level.

“But I just want to highlight the fact that while the country’s sovereign debt is said to be moderate, we are living in a world with a lot of shocks and large amount of uncertainty.

“And if you look at the interest payment as a share of revenues, that is 75 per cent of revenues go into interest payment. That means there is hardly any money for doing social support or development spending.
“Therefore, to make sure that debt stays in a manageable level, it is also important to do more domestic revenue mobilisation, which is to be able to raise more revenue.

“That is going to be very helpful in meeting other needs of the society. Also, all other macro-adjustments that are necessary to bring down inflation would over time help in reducing interest payment. So, Nigeria’s debt is a moderate risk, but it is important to stay the course in terms of sound policies and also pro-growth policies because that is very helpful from a debt perspective.”

Commenting on the multilateral institution’s recommendations for Nigeria to ramp up domestic revenue, IMF official pointed out that the significant savings from ending fuel subsidies should be re-channelled into the government’s coffers so that it could be used for important development spending. This, Gopinath stated, would raise revenues for the government.

Gopinath said, “The second step, of course, is in terms of improving administration. More can be done on that front and the government needs to invest in automation and digitalisation to make that happen.

There also tend to be a lot of tax exemptions – what we call tax expenditures. Closing those loopholes would also help to raise tax revenues. “More generally, putting policies in place, like improving security, power, infrastructure, ease of doing business, which the government has done with the recent national single window to help importers and importers.

“Those kinds of measures would bring back investment and growth and that would also be helpful.”

For the Central Bank of Nigeria (CBN) to keep the naira exchange rate stable, Gopinath advised the monetary policymakers to keep monetary policy tight. She said this was necessary to help bring inflation down and stabilise the naira exchange rate.

He stated, “The central bank has also done a good job in terms of fixing the forex market and functioning of the market to prevent big and unnecessary volatile moves.

“So, making sure that the forex market continues to work efficiently is going to be important. It is not just about monetary policy; it also depends on fiscal policy.

“Fiscal policy also needs to be in line with bringing inflation down. Containing deficits is going to be important and making sure that you don’t go back to when central banks were financing fiscal deficits because that obviously would be detrimental to the naira.

“So, these set of measures, staying the pack and letting the currency be a shock absorber and not doing too much interventions, are very important to keep confidence in the currency.”

On how long the tight monetary policy regime should last, considering complaints from members of the organised private sector, the IMF deputy managing director said, “We align with the policies of the central bank in terms of keeping interest rate high. It is going to be important to bring interest rate down. I think they are going to benefit from the fact that food inflation is expected to soften.

“And through that channel, you will get a decline in inflation and that is going to help in terms of monetary policy and bring overall inflation down.

“Again, it is important to stay the course, it takes time to bring inflation down from high levels and so it is important to stay the course and make sure that inflation comes down considerably.

“We have had many episodes of countries where you declare success prematurely and you end up with another bout of very high inflation. Nobody wants that to happen.”

Gopinath acknowledged the economic challenges currently facing Nigeria and highlighted the need for the federal government to embrace targeted social interventions. She prescribed this when she met Edun on Tuesday in Abuja.

The finance ministry’s Director of Information and Public Relations, Mohammed Manga, disclosed in a statement that Gopinath acknowledged the economic challenges facing Nigeria and emphasised the importance of targeted social interventions.

“We discussed Nigeria’s outlook and efforts to address the high cost of living, including the need to accelerate social support,” she was quoted as saying, reaffirming the IMF’s commitment to supporting sustainable economic policies.

The high-level discussion with Edun focused on economic reforms, private sector investment, and Nigeria’s engagement in global financial affairs.

The finance minister outlined Nigeria’s effort to enhance social investment programmes, stating that the government is transitioning to a biometric-based transparent system to improve efficiency and accountability.

He stated that the government was also advancing tax reforms, revenue assurance mechanisms, and digitalisation to strengthen domestic resource mobilisation.

Additionally, he said crude oil production had increased from 1.2 million to 1.7–1.8 million barrels per day, significantly boosting national revenue.

Highlighting the role of private sector investment, the minister emphasised policy shifts aimed at expanding renewable energy, improving the investment climate for solar, and promoting service exports.

Edun also addressed electricity sector reforms, and advocated expanded metering to enhance efficiency.

On the international front, discussions focused on Nigeria’s participation in global financial policy and efforts to secure fairer and improved credit ratings for African economies.

Edun stressed that enhancing fiscal data transparency could strengthen Nigeria’s credit profile, attract investors, and reduce borrowing costs.
Meanwhile, the federal government yesterday announced what it termed a significant step forward in the country’s quest for sustainable and reliable electricity supply, with the achievement of 6,003mw, the highest generation ever recorded in the country.

According to a statement by Bolaji Tunji, the Special Adviser on Strategic Communication to the Minister of Power, Chief Adebayo Adelabu, on March 2, 2025, Nigeria achieved a record available power generation of 6,003mw, the highest in the nation’s history.

He said this was followed by another landmark within the period, when the country recorded a peak generation evacuation of 5,801.84 MW and a daily maximum energy output of 128,370.75 megawatt-hours
“These achievements represent a significant leap forward in the sector’s capacity to meet the growing energy demands in the country, ongoing reforms in the power sector and the avowed commitment of the administration of President Bola Tinubu to ensure regular electricity supply in order to galvanise the nation’s economy,” the federal government said.

The statement expressed optimism on the sustainability of the “records” and the potential for further improvements in the coming days.

It said, “We are thrilled to announce these historic milestones in Nigeria’s power sector. The record available generation of 6,003mw, the peak evacuation of 5,801.84mw, and the daily maximum energy output of 128,370.75 MWh are testaments to the hard work, dedication, and strategic reforms being implemented under the leadership of the Minister of Power, Adelabu.

“These achievements are not just numbers; they represent a brighter future for Nigeria, where businesses can thrive, households can enjoy uninterrupted power supply, and the economy can grow sustainably.”
The statement also said the recent milestones were the result of concerted efforts by the Federal Ministry of Power, in collaboration with key stakeholders in the sector, to address longstanding challenges and optimise the nation’s power infrastructure.

“These efforts include the rehabilitation and upgrading of transmission and distribution networks, the implementation of innovative technologies, and the introduction of policy reforms aimed at enhancing efficiency and accountability,” the statement said.

The federal government said one of the key factors that contributed to the recent achievements was the tariff review, which ensured liquidity in the sector and created a more sustainable and investment-friendly environment for the power sector.

The statement added, “By ensuring that tariffs reflect the true cost of power generation and distribution, the government is paving the way for increased private sector participation and the mobilisation of much-needed capital for infrastructure development.”

According to Adelabu, the regularisation of tariffs will play a critical role in unlocking the sector’s full potential and driving further improvements in power generation and distribution.

To sustain the improvements, the government would have to pay down on the tariff shortfalls of N1.94 trillion for 2024 and legacy debts of N2 trillion to the Generation Companies (GENCOs), the government said.
Adelabu said, “It would be important to continue the tariff reforms to ensure consumers start to pay for the energy consumed. By the time the tariffs are fully regularised, we will be moving closer to 7,000 MW of available generation capacity.

“This will mark another significant milestone in our journey towards a stable, reliable, and efficient power sector that meets the needs of all Nigerians.”

He admitted that there was still much work to be done, stating that Nigeria cannot afford to rest on its laurels.

The minister said, “The support and cooperation of all stakeholders are critical to sustaining these achievements and driving further progress in the sector. Together, we can build a power sector that serves as a catalyst for Nigeria’s economic growth and development.”
Adelabu inaugurated the planning committee on the proposed conference of the National Council on Power (NACOP), the highest decision making body for the power sector.
He charged members of the committee to ensure a successful and hitch-free event.

The event is scheduled for the second quarter of this year.
The minister underscored the importance of the conference, stressing that the council meeting has become more important against the background of the ongoing reforms and revitalisation of the power sector.

Adelabu stated, “As we are all aware, this is the highest decision making body for the power sector, so we have an important assignment at hand and not just a meeting. It must be planned and executed to ensure that the desired outcome of the meeting is achieved.

“The last of this meeting, I understand, was held in December 2022, so we have a lot of grounds to cover because it is supposed to be an annual meeting. We have a backlog of issues to discuss at the coming meeting and we must be fully prepared for it.”

Obinna Chima
This week, the Nigerian economy experienced two major incidents that are critical building blocks for sustained long-run economic growth. The first was the rebasing of the Consumer Price Index (CPI), which measures the average change over time in the prices paid by consumers for a representative basket of consumer goods and services, and the other was Thursday’s decision of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) to pause its monetary tightening regime and (left) leave all its key monetary policy tools unchanged. The decision to halt the tightening regime, which had been in place since 2022, followed recent stability in the foreign exchange market and gradual moderation in the price of petrol.
Inflation in the past 18 months has significantly dealt with Nigerians, causing a sharp rise in the cost of living and making it difficult for many to afford basic necessities like food, leading to widespread struggles and hardship. High inflation distorts consumer behaviour. It also destabilises markets by creating unnecessary shortages. Likewise, high inflation, which is not the desire of any economy, leads to income redistribution and brings about weak purchasing power. That is why central banks globally are never comfortable with a rising inflation rate, usually seen by them as ‘evil.’
Following the rebasing exercise, the CPI declined to 24.48 percent year on year in January, according to the National Bureau of Statistics (NBS), compared with the 34.80 percent in December, which was printed under the old template. The rebasing meant updating the reference year used to gauge price levels in the country by essentially changing the basket of goods and services used to measure inflation. This was done to better reflect current consumer spending patterns and ensure the inflation data accurately reflects the economy’s current state.
It involved replacing outdated items with new ones that better represent what people are buying today. What this meant was that unlike in the past, where the base year was 2009, the base year for the current template is 2024, meaning that the NBS now compares prices in 2025 with that of 2024 instead of 2009 which was being used previously.
Under the new CPI base year, there are 960 items in the basket, whereas in the 2009 basket, there were 740 items, and the weight assigned to each of the products in the basket are not the same. The exercise is basically to make adjustments to developments within the economy over time and capture improvements, innovations and changes in consumption patterns therein.
The rebased data are expected to reflect present inflationary pressure within the economy to support policymakers, firms, and analysts in decision-making.
Accurate data allows for more effective interventions to control inflation and promote economic stability. With this, businesses and investors can make informed decisions about investments and pricing. This will enable the government to identify high-growth sectors for scaling and low-growth areas that require targeted interventions for balanced development.
Now to the MPC decision. Monetary policy plays a stabilising role in influencing economic growth through a number of channels. Inflation expectations are (an) important factorS in monetary policy decisions. And with actual inflation far off target in the country, there has been an increased focus on inflation expectations and whether they remain anchored. That was why after the unveiling of the rebased CPI figures for January, the general expectation was for the MPC to pause its aggressive restrictive monetary policy. As expected, the CBN retained the Monetary Policy Rate (MPR), the benchmark interest, at 27.50 percent, with the asymmetric corridor of +500/-100 basis points around the MPR. It also left all monetary policy parameters unchanged, including the Cash Reserve Ratio (CRR) of Deposit Money Banks (DMBs) at 50 percent, and that of Merchant Banks at 16 per cent, as well as the Liquidity Ratio (LR) at 30 percent.
CBN Governor, Mr. Olayemi Cardoso, said the committee was unanimous in its decision to hold rates at current levels, having expressed satisfaction with recent macroeconomic developments, which were expected to positively impact price dynamics in the near to medium term.
Cardoso also said there had been greater confidence in the markets, a key ingredient that was missing in the equation.
He also said CBN was now in a better position to begin the process of moderating rates, adding that stability remains important, and “if investors do not see stability, they do not come to those markets.”
Cardoso said MPC was particularly impressed by the stability in the FX market.
The CBN governor said the committee recognised the recent rebasing of the CPI by the NBS, adding that following major policy measures undertaken by the monetary and fiscal authorities, the flow of foreign direct and portfolio investments, as well as diaspora remittances are expected to increase as investor and stakeholder confidence improved.
Cardoso also pointed out that the improvement in oil production, which was 1.54 million barrels per day (mbpd) at the end of January 2025, will enhance the current account position of the balance of payments with the attendant positive impact on external reserves.
Clearly, the pause by the MPC can achieve the dual goals of buying time to assess more economic data and continue to control inflation and inflation expectations. This also provides businesses and consumers with some breathing room, allowing them to adjust to existing higher rates, potentially leading to increased borrowing and investment, which can stimulate economic activity and stabilise growth trajectories.
Also, with the inflation rate now below the benchmark interest rate, the decision to hold was positive for the economy as the real rate of return is now positive in Nigeria with the MPR higher than inflation. With this, investors can now derive value from their financial assets.
However, beyond the two macroeconomic indicators that have been largely viewed as levers for economic growth, the federal government needs to also focus on policies that would encourage local production of goods and services, as well as to aggressively drive exports to increase foreign currency inflows to the country.
Similarly, policies that discourage imports should be introduced, while encouraging productivity, both in terms of tax incentives. There is also a need to address the structural issues that have continued to impede growth and discourage investments in the country, such as insecurity, and crude oil theft, to unlock dollar liquidity inflow and encourage productivity.
Additionally, beyond the CPI rebasing and hold on interest rate, there should be efforts to improve fiscal transparency and reduce costs of doing business, which would be helpful not only in terms of their favorable effects on nominal stability and growth but also through positive effects on broad institutions.
Finally, there is also a need for better coordination between the fiscal and monetary policies to win the battle against inflation and lower interest rate.

The Executive Secretary/CEO, Financial Reporting Council of Nigeria (FRC), Dr. Rabiu Olowo, has been elected as Chair of the 41st session of United Nations Conference on Trade and Development (UNCTAD), Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR).
A statement from the FRC on Wednesday, noted that the prestigious appointment was a testament to Olowo’s exceptional leadership and expertise in corporate reporting.

Speaking after his election, Olowo expressed gratitude and commitment to leading the global collaboration of experts, saying, “It is a great honour to be elected Chair of 41st session of UNCTAD ISAR,” adding, “I am committed to leading a global collaboration of experts focused on improving transparency and comparability in corporate reporting across the globe in order to unlock capital flows.”

As the Chair of UNCTAD ISAR, Olowo will play a crucial role in shaping the global financial reporting landscape. His vision for improved transparency and comparability in financial reporting aligns with the FRC’s mission to promote excellence in financial reporting and governance.

Under Olowo’s leadership, the FRC has undergone significant transformation, with initiatives such as the development Small and Medium Enterprises Corporate Governance Guidelines (SME CGG) and launching the roadmap for the adoption of sustainability reporting standards in Nigeria in collaboration with the ISSB Chairman.
Key Highlights of Olowo’s election includes, “Global Recognition: Dr. Olowo’s election as Chair of UNCTAD ISAR recognises his expertise and leadership in corporate reporting.
“Improved Transparency: Dr. Olowo’s commitment to improving transparency and comparability in corporate reporting will unlock capital flows globally.
“FRC’s Transformation: Under Dr. Olowo’s leadership, the FRC has introduced initiatives to promote excellence in financial reporting and governance.”

Flutterwave, Africa’s leading payments technology company has announced the expansion of its Send App service across 49 states in the United States, through a partnership with MainStreet Bank, a subsidiary of MainStreet Bancshares Inc. (Nasdaq: MNSB and MNSBP).

Send App by Flutterwave facilitates faster, easier, and more affordable money transfers from Africans in the diaspora to their families and friends back home. Other key features of Send App include real-time support and exchange rate updates, an activity section that tracks transactions in real-time, and a new voucher and referral code section, according to a statement.

Remittances to Africa have doubled over the last decade, reaching an estimated $100 billion in 2022, according to the United Nations, supporting the medical bills, education costs, and living expenses of an estimated 200 million Africans. The importance and necessity of staying connected, no matter the distance, is a key driver of this expansion.

Since its initial launch, Send App has quickly established itself as a trusted platform for Africans in the diaspora, offering a simple and affordable way to send money to loved ones across Africa. Send App’s U.S. coverage has grown to 49 states today (all except Texas). The U.S. expansion will build on Flutterwave’s success and reinforce its commitment to serving African diaspora communities globally with a payment solution that fits their needs.

“As a customer-focused, tech-forward community bank, MainStreet Bank understands and prioritizes investment in communities, which makes it a great fit for Flutterwave’s goal to build bridges that connect Africa to the world,” Founder and CEO of Flutterwave, Olugbenga “GB” Agboola said.

“Our partnership with MainStreet Bank underscores our dedication to providing secure, regulatory compliant, and efficient financial solutions. This has further strengthened the safety and security of our customers’ funds and data, ensuring that Send App remains a reliable remittance solution that gives Africans in the diaspora peace of mind with every dollar they send back home. We care deeply about our diaspora community, who we expect to play a major role in Africa’s next phase of growth,” he added.

President of Avenu, a Division of MainStreet Bank, Todd Youngren, said the Flutterwave relationship was a great fit for Avenu, an embedded banking platform with fully integrated compliance and risk management. “We are proud to partner with Flutterwave as they expand Send App across the U.S.”
Send App by Flutterwave is currently available on Google Play Store and Apple App Store.

Obinna Chima

“Interest rates need to be reduced to increase investment and consumer purchasing in ways that sustain the economy at a higher level.”

The above were the exact statement of President Bola Tinubu on the day of his inauguration as Nigeria’s 16th President. However, in the last one year under his leadership, Nigerians have experienced the direct opposite of his words as in a bid to tame the hyper-inflation seen in the, the Central Bank of Nigeria (CBN) has raised interest rate so high that it is choking businesses and hurting economic growth.

Precisely, the CBN has raised the monetary policy rate (MPR), known as the benchmark interest rate by 825 basis points in the last on year, from the 18.50 per cent it was of May 2023, when Tinubu assumed office, to 26.75 per cent as of May 2024.

This year alone, the Monetary Policy Committee (MPC) has raised the MPR three consecutive times and has maintained a hawkish stance in a bid to tackle the country’s persistent inflation.

Despite Tinubu’s promise of a low interest regime when he assumed office, the apex bank has continue to signal a return to orthodox monetary policy regime as CBN Governor, Mr. Olayemi Cardoso, vowed to continue to adopt a contractionary policy stance to tackle inflation to achieve price stability – as long as it takes.

Regrettably, despite all the fire-fighting measures adopted by the CBN, inflation rate has remained stubbornly high in the last one year, as it climbed to 33.69 per cent in April 2024, compared with the 22.41 per cent it was when Tinubu took over. Food inflation stood at 40.53 per cent as of April 2024, as against the 24.82 per cent it was as of May 2023.

Beside the high interest rate, the naira exchange rate against the dollar has fallen sharply in the last one year under Tinubu. From N700 to a dollar in May last year, the naira exchange rate against the dollar continues to hover around N1500 to a dollar since this month. Around March this year, it depreciated to about N1600 to a dollar on the official market and N1800 to a dollar on the parallel FX market and was then adjudged the worst performing currency in the world. The free fall of the naira exchange rate has defied all measures adopted by the central bank, even as dollar scarcity remains a concern.

Another major challenge that the Nigerian economy was confronted with in the past one year, was the decision by Tinubu to in his inaugural speech, announced the scrapping of the decade-long fuel subsidy policy, which saw prices of goods and services increasing rapidly since May last year. That announcement overheated the system and raised the country’s poverty level.

The fuel subsidy removal led to a rise in the price of petrol from a subsidised price of N190 in May 2023 to over N600 in some cities, while workers’ wages remained flat.

The pass-through effect was that the price of most consumer products, such as bread, rice, industrial goods, cost of transportation,  cost of agricultural inputs, all rose sharply and some beyond the reach of ordinary Nigerians. In the last one year under Tinubu, the effect of this singular decision was felt by everyone, both the rich and the poor. Even food palliatives that were introduced by the federal government as well as some state governors, were not enough to quench the level of hunger as hundreds of Nigerians in major cities in the country demonstrated against the soaring cost of living. The level of starvation saw a lot of families skipping their meals.

The protesters were furious that despite the removal of petrol subsidy, the government failed to equally raise minimum wage, a situation which the Tinubu’s government has not been able to address till today.

In response, Tinubu repeatedly assured Nigerians that the economic hardship would soon be over, stressing that his focus was to stop the Nigerian economy from bleeding.

The country’s worsening socio-economic condition forced more Nigerians to relocate from the country.

Clearly, the Nigerian economy is in dire straits with major economic indicators looking grim amidst increasing vulnerabilities.

Today, companies in the debt market are finding it extremely difficult to raise funds as a result of the high interest rate environment. The restrictive monetary policy posture of the central bank has put unfair burden on certain sectors of the economy and is weighing heavily on interest rate sensitive sectors of the economy such as construction, manufacturing and other highly leveraged businesses. Tight monetary policy and a higher interest rate environment could as well result in increased unemployment and slower economic growth.

Financial results released so far on the Nigerian Exchange Limited (NGX), mostly by blue-chip companies such as Nestle Nigeria Plc, Nigerian Breweries Plc, MTN Communications Plc, in the last one year have been poor, due to the adverse effects of government policies, which has been worsened by the MPC’s decision to stick to its contractionary monetary policy regime. All the indices are squeezing business owners and the current monetary policy regime does not favour entrepreneurship. Banks are currently saddled with the task of meeting up with central bank’s recapitalisation target in the bid to support the federal government’s drive to build a $1 trillion economy in the next eight years.

Start-ups and MSMEs, which are the real engine of growth of any economy, are presently bearing the brunt of the higher interest rate regime and restrictive monetary policy.

No doubt, the current fight against inflation is impeding Gross Domestic Product (GDP) in the country, as growth rate slowed to 2.98 per cent, in real terms in the first quarter of the year (Q1 2024), compared to 3.46 per cent in the preceding quarter, according to the National Bureau of Statistics (NBS).

For households, with food inflation over 40 per cent, a lot of them are struggling to feed as wages remains flat, which prompted the recent protest in some cities in the country,

While it appears foreign portfolio investors (FPIs), who typically are excited to rush to any high interest rate environment for fixed income instrument are flocking in, there is need for both the fiscal and monetary authorities to give some incentives and attract foreign direct investors (FDIs).

As Edo State Governor, Godwin Obaseki, pointed out recently, “Interest rate is already high and jacking it up will not allow small businesses access to credit to make them grow. We must focus on the fundamentals which is increasing production, making sure our citizens produce what we consume and depend less on imports. Our economic and monetary policies should not be determined by exchange rate alone.

“The issue of increasing the cash reserves in a bid to tighten liquidity is going to be detrimental to our economy. We should focus on fiscal issues to enable us to grow our economy, not panic about the interest rate. Creating jobs should be a priority for us as a nation.”

Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, shares same sentiment, noting that over the last two years, there had been persistent monetary policy tightening, “yet there has not been any significant impact on the inflationary pressures. If anything, the general price level had been continuously on the increase.

“We recognise that the primary mandate of the CBN is price stability, but numerous headwinds had posed significant risks to this critical objective. Some of these include the surge in commodity prices and impact on energy cost, disruptive effects of insecurity on agricultural output, global supply chain disruptions and the surge in ways and means finance. The hike in MPR or Cash reserve requirement would not change these variables.

“The credit situation in the economy is already very tight, with lending rate ranging between 30 and 35 per cent. The Nigerian banks are yet to live up to their financial intermediation role because of these constraining factors.”

The federal government needs to focus on policies that would encourage local production of goods and services as well as to aggressively drive exports so as to increase foreign currency inflows to the country. Policies that discourages imports should be introduced, while encouraging productivity, both in terms of tax incentives.

There is also need to address the structural issues that have continued to impede growth and discourage investments in the country, such as insecurity, crude oil theft, so as to unlock dollar liquidity inflow and encourage productivity.

Finally, there is also need for better coordination between the fiscal and monetary policies in order to win the battle against inflation and lower interest rate.

Olusola Olufemi

The echoes of Ebi Ńpa Wá (cry of hunger), economic hardship, suffering are palpable, and hunger protests continues unabated in Nigeria. In January 2024 food inflation and inflation reached approximately 34 per cent and 30 per cent respectively and the release of 102,000 metric tons of food items amid food protests (national hunger protest led by the Nigeria Labour Congress) is just another palliative measure of the stomach infrastructure politics. Complicating this further is the conundrum of governance, where the lines have been blurred between state governance, rebel/insurgent/banditry governance, and food hoarders and smugglers.

Food is one of the most fundamental determinants of health. Food is central to every culture and at the heart of humanity. Nigeria is among the top countries’ hotspots of highest concern level of food insecurity globally and majority of the population are experiencing hunger, unhealthy diets, loss of livelihoods and assets, and acute malnutrition.

The intersection of food security with health, education, housing, environment, climate change, economic and socio-cultural sectors cannot be overemphasized. Food security is also impacted by various interests and governance regimes, and it became a national security issue when the President of Nigeria declared a National Emergency in July 2023 due to record inflation which made food unaffordable and increased malnutrition rates. The President ordered that all matters pertaining to food and water availability and affordability be included within the scope of National Security Council. A National Steering Committee was constituted to lead the development of a National Implementation Strategy for the National Food Systems Transformation Pathways.

Pauperisation of the people, and the governance conundrum in Nigeria must be halted through sustained food security governance. The bedrock of food security governance is engaging epistemic communities through advocacy planning, participation, and collaboration to attain a transformative and inclusive food governance and food secure futures.

AT ISSUE

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The 5A’s (Accessibility, Availability, Acceptability, Agency, and Appropriateness) of food security are at risk in Nigeria. An average Nigerian can no longer afford a meal a day with a minimum wage of N30,000/month (US$16.6/month) and exchange rate of $US1 to N1800. Nigeria is not on track to achieve the United Nations Sustainable Development Goals by 2030. In the 2023 Global Hunger Index, Nigeria ranked 109^th  out of the 125 countries and with a score of 28.3 and hunger level categorized as serious.

The World Food Program indicates 1 in 3households cannot afford a nutritious diet and more than 100 million people report at least moderate food insecurity while Cadre Harmonisé projects 26.5 million Nigerians to be food insecure in 2024. The state of food emergency and high risks of malnutrition in Nigeria can be attributed to rising inflation and food inflation; skyrocketing food, feed, and fertilizer prices; subsidy removal and Naira devaluation; failure of breadbaskets [North East (Borno), Middle Belt (Benue) and SouthWest (Sakí)], hostility, insurgency, banditry, farmer-herdsmen conflict, separatist agitation, climate crisis, urbanization, national insecurity, and bad governance (insecure, inefficient, and insensitive); ineptitude (ineffectiveness). All these factors continue to propel Nigerians into severe and acute food insecurity even though there is food in the markets, the costs of food are unaffordable, and the food outlook is in dire straits.

On the policy front, the 2016 Nigeria Food and Nutrition Policy emphasizes a country where the people are equitably food and nutrition-secure with high quality of life and socioeconomic development contributing to human capital development and attaining optimal nutritional status for all Nigerians by 2025, with particular emphasis on the most vulnerable groups such as children, adolescents, women, elderly, and groups with special nutritional needs.  The Policy recognizes poverty as the basic cause of the food and nutrition problem. It noted that poverty is entrenched in the mechanisms of governanceand institutions which drive the economy and that malnutrition in Nigeria arises from poverty, gaps in governanceand institutional weaknesses while food insecurity, inadequate care and access to health services are underlying causes and inadequate food intake and diseases are the immediate causes. Despite the recognition of poverty, malnutrition, and governance gaps in the policy, the pauperization of the people is palpable in reality.

·&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;Poverty and Inflation

Nigeria with a population of 227.6 million and 40.9 % unemployment rate, over 133 million (62.9%) people are multi-dimensionally poor, that is about 6 out of every 10 Nigerians, with 65% (86 million) and 35% (47 million) of the poor living in the North and South of Nigeria respectively according to the World Bank. The National Bureau of Statistics  notes as many as 4 in 10 Nigerians lived below the national poverty line in 2023. Multiple deprivations and food insecurity contributes about 12.5% to the National Multidimensional Poverty Index while about 38.6% are food insecure (poor and deprived) and 50.9% are food deprived/poor irrespective of poverty status on the National Poverty Map. Additionally, the National Bureau of Statistics states Nigeria’s annual inflation rate and food inflation increased to 29.9% and 35.5% respectively in January 2024 with higher prices across a broad range of items including bread, noodles, rice, gàrí (cassava flour/flakes), fish, meat, fruit, and eggs.

Governance

The governance conundrum in Nigeria cannot be overemphasised.Bad governance, poverty  and hunger can result in conflict. Governance refers to the informal and formal rules, customs, processes, and practices that guide any society. Governance for sustainable development entails: effectiveness (competence, sound policymaking, collaboration), accountability (integrity, transparency, independent oversight), and inclusiveness (leaving no one behind, non-discrimination, participation, subsidiarity, and intergenerational equity). Food systems governance relates to processes, actors, drivers (environment, natural, & socio-economic), and institutions that shape decision-making and activities related to food production, processing, distribution, consumption, and waste. Governance for food security (outcome-based) implies food security as experiential outcome, whether socially, economically, environmentally, culturally, or politically. While food security governance  (sector-based) refers to the institutions that comprise the governance regime for food security at different levels.

Food governance structure in Nigeria comprises of:

·&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;Formal Governance (the Federal, State and Local Government and Traditional rulers).

·&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;Rebel governance (Insurgents, Herdsmen, and Bandits).

·&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;Informal Governance (Market Associations, Farmers Associations, Street hawkers and vendors, Associational Life Groups and Food Cooperative societies).

·&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;&�Բ�����;Faith Governance (religious institutions).

Food actors involved in food governance in Nigeria include State actors (Federal, State, Local government, and traditional rulers); Corporate actors (BUA foods, Dangote foods, Nestlé, Cadbury etc., and Public Private Philanthropic Partnership); Quasi State actors (Agricultural Research Institutes such as International Institute of Tropical Agriculture, National Institute of Horticultural Research etc.), and Non-state actors (Civil Society Organizations, Households/Family farmers, Associational Life Groups, Mechanized/Irrigation Farmers, Food producers, NGOs, Market Associations,  Insurgents, Rebels and Bandits), and Foreign actors (e.g., China). Notably, everyone that consumes or interacts with food is a food actor and every food actor shape and reshape the food governance landscape in Nigeria.

A New Social Contract for Food Security Governance?

The 2023 UN Climate Change Conference (UNFCCC COP 28) in UAE affirmed the complexities of governanceand the diverse paths toward building inclusive and sustainable food systems. The importance of a multilevel governance frameworkfor food systems transformation was affirmed and a call for  a new governance system with inclusive decision-making mechanismsto achieve the transformation and for creating alliances with like-minded actors from different sectors to work towards this goal was made. Food systems governance plays an important role in shaping the pathways for transformational change towards sustainability. It requires a dynamic transformative governance that combines formal and informal rules and processes of food and nutrition security at all levels of government.

Perhaps with the governance conundrum food security requires a new social contract that is transformational (integrative, inclusive, adaptive, and pluralistic).  This must be anchored in epistemic communities and authorities. The core of food security governance is epistemic engagement of communities through advocacy planning to attain food secure futures. Advocacy planning deals with community organizing and empowerment, enabling communities to speak for themselves.

Advocacy planning is about including rather than excluding citizens from participation in the food security governance process. Inclusionmeans being heard, being well informed and able to respond accordingly. What deems proper is to advocate for epistemic communities and authorities to be engaged in food security governance and ensure everyone’s right to adequate, available, accessible, and culturally appropriate food. What deems proper is affordable and accessible location of food places (Sitopia). It is imperative to integrate the epistemic (ways of knowing) and ways of doing, in the various communities through effective listening and learning. Effectively engaging (inclusivity) the epistemic communities (people) and epistemic authorities (their leaders) will lead to a transformative food security governance and minimise the echoes of hunger (‘Ebi Ńpa Wá) in the land.

Olusola Olufemi, PhD is an Associate Professor of Urban and Regional Planning, Independent Consultant, Ontario, Canada; Associate, Society for Good Health, Sustainable Development & Environmental Awareness, Ibadan, Oyo State, Nigeria.

CardinalStone has been recognised by Euromoney as a Market Leader in Investment Banking in Nigeria in the recently concluded ranking exercise.
According to a statement, the notable ranking was awarded to CardinalStone after achieving top scores across Euromoney’s parameters like Products and services, Quantitative financial data, Quantitative market share data, Client service and Risk exposure.

Commenting on the feat, Head, Investment Banking, CardinalStone, Onyebuchim Obiyemi said: “This ranking reaffirms the firm’s excellence in the Nigerian Investment Banking sector and the team remains dedicated to providing innovative and value-creating solutions to support the unique needs of our esteemed clients.”

Buttressing the comment from Obiyemi, the Group Managing Director, CardinalStone Partners, Michael Nzewi, said, “this ranking is a global recognition of excellence, and the firm remains committed to enabling impactful services while upholding the highest standards of excellence in investment banking and financial services”.

Euromoney is a widely renowned authority for global banking and financial markets, and the Market Leader ranking provides a comprehensive global ranking of banking and finance brands across several key segments, recognising success across specialisms at a national level.

The Investment banking team of CardinalStone is made up of seasoned experts with a wealth of experience across various sectors and they assist their clients with bespoke solutions to address capital raising and financial advisory needs across markets. With a constant drive for excellence, CardinalStone will continue to drive growth, create value, and contribute to the development of Nigeria’s financial sector through advisory on private, corporate, and governmental funding solutions.

CardinalStone is an independent, multi-asset investment management firm offering an assortment of financial services to a diverse institutional, high net worth and retail clientele base. The firm began operations in June 2008 and is currently registered by the Nigerian Securities & Exchange Commission. Its business is conducted across six divisions – Investment Banking, Asset Management, Securities Trading, Trust Services, Registrar Services and Financing.

Obinna Chima

It was feelings of shock and numbness across the country yesterday, when the news of the demise of the Group Managing Director of Access Holdings Plc, Mr. Herbert Wigwe; his wife, Chizoba, and his son in a helicopter crash in the United States, on Friday, spread like a wild fire. The accident also killed three others, including a former Group Chairman of Nigerian Exchange Group Plc (NGX Group), Abimbola Ogunbanjo in California.

This tragedy left so many in mourning mood as they continued to ponder what caused the sad disaster. Death is cruel, especially when it happens to someone who has big dreams, a builder of men, someone who loves humanity, and is relentless, audacious and fearless, which were the attributes of the late banking icon.

 His passion is infectious and electrifying. His energy unmatched and the result has been the rise of Access Holdings as well as his recently launched Wigwe University, which was being positioned to compete with any ivy-league institution across the world.

Wigwe, who was born on August 15, 1966, started his professional career with Coopers & Lybrand Associates, an international firm of Chartered Accountants. He spent over 10 years at Guaranty Trust Bank Plc where he managed several portfolios, including financial institutions, large corporates and multinationals.
He left Guaranty Trust Bank as an Executive Director to co-lead the transformation of Access Bank Plc in March 2002 as Deputy Managing Director. He was appointed Group Managing Director/CEO effective January 1, 2014 and served in that capacity till May 2022. He was subsequently appointed a Non-Executive Director of the Bank effective May 2022.

Wigwe was an alumnus of the Harvard ������Ƶ School Executive Management Programme. He held master’s degree in Banking and International Finance from the University College of North Wales, a master’s degree in Financial Economics from the University of London and a B.Sc. degree in Accounting from the University of Nigeria, Nsukka (UNN).

He was also a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN). He was the Chairman of Access Bank (UK) Ltd and a Non-Executive Director of Nigerian Mortgage Refinance Company Plc; FMDQ OTC Securities Exchange; Shared Agents Network Expansion Facilities Ltd and Agri-������Ƶ/ SME Enterprises Investment Scheme. He is also a member of the Governing Council of the Chartered Institute of Bankers of Nigeria.

Wigwe was one of the most respected bankers on the continent, without a shadow of a doubt. He clearly understood that without embracing change and having foresights, banks would not be able to compete and would be left behind by their peers, which would definitely impact customer satisfaction, operational efficiency, and revenue growth negatively. This was why he continuously ensured that Access Holdings under his watch emerged as one of Africa’s leading financial services groups. He showed relentless pursuit for growth, but in a measured and calculated manner.

From a small bank in 2002, the late Wigwe who took over from his close friend and business partner, Aigboje Aig-Imoukhuede, in 2014, completely transformed the bank which at some point was ranked 65th among 89 banks operating in the country. Access Bank under Wigwe, evolved from an obscure bank into a world-class African financial institution.

Today, the financial institution, which is a subsidiary of the holding company, is one of the five largest banks in Nigeria in terms of assets, loans, deposits and branch network; a feat which was achieved through a robust long-term approach to client solutions – providing committed and innovative advice.
Access Bank has built its strength and success in corporate banking and is now applying that expertise to personal and business banking platforms it acquired from Nigeria’s international commercial bank in 2012. Wigwe has helped to develop some of Africa’s biggest companies in the construction, telecommunications, energy, oil and gas sectors through Access Bank.

Immediately the African Continental Free Trade Area (AfCFTA) was established in 2018, Wigwe saw it as an opportunity to position Access Bank and the parent company for the continental benefits. This saw him aggressively drive the expansion of the institution.
To him, AfCFTA, among other benefits, was expected to expand intra-Africa trade and provide real opportunities for the continent. His belief was that Africa has enormous potential and that there are opportunities for an African bank that is well run – that understands compliance and has the capacity to support trade and the right technology infrastructure to support payments and remittances, without taking incremental risks.

“We are building a strong and sustainable franchise to support economic prosperity, encourage Africa trade, advance financial inclusion thereby empowering many to achieve their financial dreams. We believe that we are best positioned to basically do all of that. Our focus is to become an aggregator in Africa and we are building a global payment gateway and providing trade finance support and correspondent banking across the continent. We are focusing on the key markets.

“The approach would always be that in the country we wish to go to, that we have the right skills. We would not just be a drop in the country in which we are present, we would make sure that we have an impactful presence in each of the major countries in which we are present.
“In doing this, we are also mindful of the country we are going to so as to make sure that it is of benefit to the bank. As we do this, we are working with our friends and partners,” he had said while speaking about his big dream for the financial institution.

Today, Access Holdings has spread from Nigeria to Rwanda, Ghana, South Africa, Mozambique, Kenya, Zambia, Angola, France, United Kingdom, Botswana, Guinea, R.D. Congo, Gambia, Tanzania, Uganda, among several other countries.
His latest aggressive expansionist drive was in Zambia, where Access Bank Zambia Limited last month announced the completion of its acquisition of African Banking Corporation Zambia Limited (also known as Atlas Mara Zambia), after obtaining all requisite regulatory approvals.
In May last year, Wigwe emerged as President of the France-Nigeria ������Ƶ Council, a platform that was established to strengthen business ties between France and Nigeria, and promote mutual growth and prosperity. Under his leadership, the council has held several fruitful engagements between French and Nigerian businesses.

His Wigwe University, which is presently admitting its first set of students was expected to play a pivotal role in bridging the skills’ gaps in the continent and ensure that the right manpower is developed for African businesses and for the rest of the world. The ivy-league institution is based on high-standard teaching quality, established to build a new generation of leaders, entrepreneurs and scientists. It is Africa’s gateway to the world of entrepreneurship, technology, innovation, and impact. Wigwe’s mission, through the Wigwe University, was to change the course of Nigeria’s future through committed and world-class faculty and globally relevant and locally impactful curricula taught through novel methods to rival the globe’s most respected universities.

The Wigwe University is dedicated to fostering a global learning environment with a focus on excellence, innovation, and inclusivity.
To bridge the gap in manpower, Wigwe had planned to recruit 30 per cent of the teaching staff from the UK and the US. He was to play an active role in teaching and mentoring, engaging prominent entrepreneurs like his friend Aliko Dangote, Africa’s richest man. The university aims to enroll 1,400 students in its inaugural year, with a projected increase to 10,000 within the next five years.

To Wigwe, education is expected to make one fearless. It should help students remain focused, unwavering, and fixed firmly on the exhilaration of victory rather than the fear of defeat. He said this was why Wigwe University was focused on delivering education, cultivating Africa’s bold and fearless generation of leaders, innovative thinkers and entrepreneurial sons and daughters.

“I cannot change the world overnight. But if I can empower even one youth today, tomorrow, they could join me in empowering others. With time, we could change the world. The truth is that the end to the good we can achieve is nowhere in sight. There’s so much more to conquer. There are more lives to impact and generations to uplift to achieve their full potential,” Wigwe said recently.

In addition, his philanthropic gesture saw him set up the HOW Foundation (Herbert Onyewumbu Wigwe), which is focused on education, health, youth empowerment and sustainability. The Foundation has over the years committed several billions of naira to upgrade and support 23 Primary Health Care Centres across Rivers State in five years, to train 75 doctors (in Israel and the USA) over the course of five years, among several interventions. Its achievements are evidenced in its commitment to change the future through the upliftment in education, health and youth empowerment. Also, the HOW Foundation supports the education of 13 000 Almajiri children in Kaduna State.

Indeed, Herbert Wigwe, his wife, his son, Ogunbajo and others that died in the accident would be dearly missed by all their admirers and family members. But they must all be encouraged by the words of Wigwe who on January 19, 2024 tweeted: “Today and always, let us remember that life is a precious gift – a chance to breathe, feel, love, experience and connect. Let’s honour this gift by living with purpose, kindness, and gratitude, making every moment count. Let us number our days.”

Obinna Chima

The Nigerian economy is at a crossroads with the option to either swim or sink. This dire strait was brought about by the precipitous depreciation of the Naira against the United States’ dollar in the past few weeks which has remained a source of concern to business operators and the citizens.

The free fall of the naira, which last week became a topical issue as the official foreign exchange (FX) rate fell below the parallel market FX rate, further shook public confidence as businesses and investors continue to find it difficult to predict the naira exchange rate.  Precisely, during the week, the Naira fell to N1,482/$1 on the official and around N1500/$ on the parallel market rate, which necessitated a raft of measures introduced by the Central Bank of Nigeria (CBN) to calm the market.

In response, the CBN has in the past few weeks taken steps to calm the market, especially by clearing the country’s FX liabilities across various sectors, which was estimated at about $7 billion, with about $2.4 billion discovered to have infractions.

Additionally, the central bank last week directed banks to ensure that the Net Open Position (NOP) limit of their overall foreign currency assets and liabilities on-and-off-balance sheet does not exceed 20 per cent short or zero per cent long of shareholders’ funds unimpaired by losses using the gross aggregate method, a move which was expected to in the short-to-medium term boost dollar liquidity in the financial system.

Furthermore, the apex bank announced the removal of allowable limit of exchange rate quoted by the International Money Transfer Operators (IMTOs). It pointed out that IMTOs are now allowed to quote exchange rates for Naira pay-out to beneficiaries based on the prevailing market rates at the Nigerian foreign exchange market on a willing seller, willing buyer basis, thus abolishing -2.5 per cent to +2.5 per cent allowable cap around the previous day’s closing rate.

To most financial market experts, the lacklustre performance displayed by the Naira reflects the symptom of broader economic problems such as the import-oriented structure of the economy, continued inflationary pressure, fiscal imbalance, among others.

Inflation in Nigeria closed 2023 at a 21-year high of 28.92 per cent, the National Bureau of Statistics disclosed recently. The rising inflation has also contributed to the depreciation of the Naira as it has raised the cost of imports, which feeds into higher consumer prices.

Also, the free fall of the Naira has been partly attributed to excess cash in the system, which some specifically accused the state governors of using to mop up dollars, thereby putting pressure on the FX market.

“What we are seeing in the market is partly as a result of some state governors and the sub-who have lots of cash and because most of them have not activated the payment of palliatives in their states, they are indulging in reckless spending and those monies they are spending are being used to chase dollars, therefore putting pressure on the FX market,” argued a top market analyst who pleaded to remain anonymous.

Notwithstanding other external factors plaguing the nation’s currency, the country’s heavy import dependence is also responsible for the high forex outflow and the perennial weakness suffered by the Naira. According to analysts, the country’s high import dependence explained why the exchange rate is often the bellwether for Nigeria’s economic health, and why there is a swift pass-through of exchange rate movements to inflation. More than a third of Nigeria’s FX outflows are due to invisibles. Also, the country’s infrastructure deficit explained the huge level of importation of processed and final goods.

It was also gathered that the free fall of the naira which has resulted to a hike in import duty, has also caused an escalation in the cost of petrol subsidy as the federal government may be subsidising petrol at about N670 per litre presently.

The economy badly needs dollar liquidity and all eyes are on the CBN Governor, Yemi Cardoso for monetary policies that would help unlock the desired dollar inflows.

But speaking in an interview with Arise News Channel yesterday, Cardoso pointed out that the economy had been in a situation in recent past where there has been a shortage of liquidity in the FX market, arising from “certain distortions,” which created huge volatility in the market.

He, however, is optimistic that with ongoing reforms, “ultimately, we see a situation where people who require FX don’t have to know anybody in the banks, that is, either the CBN or the commercial banks. A system that is open and transparent creates an environment for distortions to go away and those who want to bring in FX and those who want to demand for it can do so on an open basis, willing buyer, willing seller basis and therefore the market becomes active and price is eventually discovered at a level that makes sense.”

According to Cardoso, the new policy on banks’ Net Open Position on the foreign currency as well as the new circular on the IMTOs would help boost FX liquidity in the market.

“It is also important to say that in all these, we believe that the market must be very transparent. The rates must be out there and everybody must know the rules of the game. That way, people don’t get caught unaware. I think that is another critical message that we are sending out to the market.

“In our role as regulators, we are significantly improving and taking up surveillance activities to ensure that the market works the way it is supposed to work and that all the players play by the rules and there is hardly rule for infractions. Those may seem basic, but they are fundamental to the proper functioning of any long-term FX market,” Cardoso added.

He stressed that, “the monetary side cannot do it alone. Both the monetary and the fiscal side must collaborate and both must understand what each other is doing and how they inter-relate. The different stakeholders understand that collaboration is key and it is way beyond just talking.

“We would focus our efforts at doing what central banks are supposed to do, which is controlling inflation, stabilise prices and ensure that we have a stable environment.”

To the Head, Wealth Management Nigeria, Standard Chartered Bank, Lanre Olajide, the challenge in the FX market is primarily and issue of demand and supply.

He noted that the demand for dollar in the economy is incredible.

“We are an import-dependent nation and we import almost everything. If you have an economy that runs that way, then your supply must also go up. But there is a deficit in supply.

“So, the first thing we need to do is to reduce our appetite for importation. We absolutely need to export more to generate more FX so that we can take care of the supply side and I think that is where ramping up oil production comes from, to help with FX receipts.

“The Dangote Refinery is a right step in the right direction and as it continues to increase, it will contribute its own quota.”

In his contribution, an Associate Director at Agusto Consulting, Mr. Jimi Ogbobine, advised the CBN under Cardoso to take steps to save the currency.

Ogbobine explained that at the end of the tenure of President Muhammadu Buhari, the parallel and official FX markets had 50 per cent differentials, which created gap for arbitrage.

“At same time, if you look at the other side, not much people were willing to invest in treasury bills because the yields were low and there was no incentive to invest in treasury bills. So, you will agree with me that the monies that ought to be invested in treasury bills are what everybody is trying to use to buy dollars.

“So, when President Bola Tinubu harmonised the FX market, the CBN was supposed to have done two things: They were supposed to have devalued the official market such that it would be at par with the parallel market and they were supposed to stop rigging interest rate on treasury bills.

“Treasury bills rates are supposed to be market-determined, but the CBN started slamming banks with arbitrary Cash Reserve Requirement (CRR) and forcing the banks to invest in treasury bills. The market rate didn’t matter to the CBN anymore. So, there was no incentive holding naira, which is why we see everyone chasing dollars, thereby ramping up demand for the dollar,” he explained.

In order to stabilise the FX market, Ogbobine advised the CBN to take steps to ramp up dollar supply. He recommended that Nigeria’s should approach the International Monetary Fund (IMF), World Bank for support.

“We have already taken the bitter bill, which is devaluation and so let’s take the sweetener from them which is the FX. The IMF support would send confidence signal to investors that we are back to business. So, if we are able to unlock IMF funding, we would be able to attract foreign investments,” he added.

For his part, the Managing Director/Chief ������Ƶ Officer, Optimus by Afrinvest, Mr. Ayodeji Ebo, also stressed the need for the country to take steps to increase dollar supply.

“A massive problem has been created in the FX market and it requires drastic measures. It might look expensive now, but if they are able to raise about $10 billion, clear the backlog and increase FX supply, and within the next six months or one year, we would begin to see foreign portfolio investors and foreign direct investments come in.

“Most of our external reserves are encumbered, so we need fresh money. Also, the security agencies must address oil theft so that we can raise our crude oil production to about 1.65 million barrels per day. That is what will show sincerity. The major steady source of FX has been crude oil sales. That is why we need to significantly reduce crude oil theft and increase supply,” Ayodeji explained.

To the immediate past Director General, West African Institute for financial and Economic Management (WAIFEM), Prof. Akpan Ekpo, it was wrong for Tinubu to have harmonised the FX markets.

“The FX market is not a competitive market. The supply of FX in US dollar, Euro and pound sterling (including the market of access) is never enough to meet the demand. The supply curve of forex is not a well-behaved one.

“The main source of forex supply is through the export of crude petroleum whose revenue is used to import refined products and makes no sense. Our economy is both not developed and industrialised hence FX is not earned through the manufacturing and exporting non-oil goods and services.

“For now, the appropriate exchange rate regime should be a managed float with emphasis on managed. The regulatory authority must watch both the supply and demand side of the forex market and make adjustments accordingly. Opening the forex market would result in distortions and shocks which the economy cannot absorb,” Ekpo, who is a former member of the Board of the CBN said.

Furthermore, he noted that the present economic crisis requires the ‘visible hand’ of government to restore recovery.

“The economy is sinking and reliance on the private sector and market forces would further deepen the crisis. There are forces more powerful than the market, for example, the World Bank and the IMF with their one-size fits all approach. Sometimes, the market has to be created but for now it could be used as an instrument.

“The economic philosophy that can ensure urgent recovery is that of a developmental state economic blueprint which implies the visible hand of government in economic activities. A visionary and transformative leader must give the people hope,” he added.

From the foregoing, the dominant problem facing the FX market is dollar scarcity and the central bank must do all within its reach to improve the supply of the greenback. Furthermore, it must urgently design policies to incentivise dollar holders so that the several billions of FX sitting idle in bank customers’ domiciliary accounts must be brought out.

In addition, the fiscal authorities must increase the country’s ability to export non-oil goods and services so as to boost FX inflows. It is important to point out that that the central bank cannot abandon the FX market completely to the forces of demand and supply. It must stand ready to intervene whenever it deems it necessary for market correction as the Nigerian economy has not matured to the state where the FX market would be left completely to the forces of demand and supply. Also, the security agencies must also work harder to significantly reduce crude oil theft so as to further boost the country’s dollar earnings.

DCSL Corporate Services Limited, a leading corporate service firm is set to celebrate a decade of professional excellence and launch an innovative boardroom app – “The DCSL e-Connect App” on Friday 8^th December 2023.

Managing Director of DCSL, Bisi Adeyemi, reflected on the significant milestones achieved in the past decade and reiterates the Company’s commitment to delivering unparalleled professional services across its bouquet of offerings to diverse sectors of the economy.

“Our ten-year journey has been propelled by an unwavering commitment to delivering exceptional professional service to a diverse range of corporate and individual clients across various business sectors. The introduction of the DCSL eConnect app marks a pivotal moment, as we embark on a new era of transformative possibilities, reinforcing our dedication to innovation and precision in communication and collaboration within the boardroom,” a statement quoted him to have said.

This celebration marks not only a milestone in our journey but also a testament to our commitment to excellence and innovation in the corporate services landscape”.

The DCSL eConnect App was designed to elevate boardroom communication, collaboration and redefine efficiency. The innovative App will empower Boards and c-suite executives to efficiently manage meetings, streamline access to and retrieval of documents, facilitate approvals, conduct polls and performance evaluation, all while ensuring compliance and tracking company plans.

 The exclusive event would be graced by key stakeholders, clients, business leaders and media partners.

Obinna Chima

Inflation in Nigeria, which has been on a steady rise since last year, has remained a source of concern to households, businesses and policymakers.

Precisely, the Consumer Price Index (CPI), which measures the rate of change in the prices of goods and services, increased to 27.33 per cent in October compared to 26.72 per cent in the preceding month, the National Bureau of Statistics (NBS) has stated.

The petrol subsidy removal in May, the floating of the naira exchange rate in June, as well as foreign exchange (FX) scarcity are major drivers of the country’s galloping inflation.

The NBS report also showed that year-on-year, the headline inflation was 6.24 per cent higher compared to 21.09 per cent recorded in October 2022.

According to the CPI report for October, year-on-year, food inflation rose by 7.80 per cent 31.52 per cent   23.72 per cent in the corresponding period 2022.

The NBS attributed the rise in annual food inflation to increases in prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, fruit, meat, vegetables and milk, cheese and eggs. Nonetheless, food inflation month-on-month fell by 1.91 per cent, representing 0.54 per cent drop compared to 2.45 per cent in September.

Inflation means different thing to different people. To the lay-man, inflation occurs when he is spending more money to purchase the same quantity of goods. On the other hand, to an economist, it is the general increase in price level over a period of time. 

No doubt, high inflation distorts consumer behaviour. It also destabilises markets by creating unnecessary shortages. Similarly, high inflation, which is not the desire of any economy, leads to income redistribution and brings about weak purchasing power.

That is why central banks globally are never comfortable with a rising inflation rate usually seen by them as ‘evil.’

The CBN’s Monetary Policy Committee (MPC) was expected to meet today and tomorrow, to marshall plan to address inflationary pressure in the country.  The monetary authorities must embrace the advice of former CBN Governor and a former Emir of Kano, Lamido Sanusi, who advised that they should implement strategic measures to combat rising inflation.

Sanusi, who recently visited the apex bank, stressed the importance of long-term planning and urged fiscal authorities to prioritise agriculture and education, particularly for girls. 

“The bank’s activities have a massive impact on the lives of Nigerians, and many people often do not know the impact of a central bank’s works until a central bank fails. 

“I urged the new leadership at the CBN to work persistently at driving down the rate, which had severely impacted the wealth of individuals,” Sanusi stated.

But the spokesman of the CBN, Dr. Isa AbdulMumin, is optimistic that the CPI figure for October, compared to September 2023, was a pointer to the fact that the central bank’s monetary policy stance to tighten rates and its money market reforms were yielding the desired effect.

According to him, available statistics showed that the first indication of deceleration in prices was recorded in September and further reforms in the money market, which commenced in October, had accelerated easing in prices as indicated by the substantial drop in month-on-month changes recorded in October.

“Moderation in month-on-month changes in prices observed in the headline, food and core components of the consumer basket followed reforms in the money market and relative stability in the forex market,” he added.

Therefore, it is expected that since Cardoso has pledged to prioritise the core mandate of price stability during his leadership at the CBN, with emphasis on price stability, Nigerians would be looking up to him to work towards achieving a single-digit inflation rate for the country as well as work in harmony with the fiscal authorities to address some of the structural imbalances in the economy that contribute to the inflationary pressure in the country.

*Says FG secured over 500 convictions, N45bn forfeitures in two years

*Ribadu: Nigeria’s security situation has improved under Tinubu
*Urges Nigerians to be patient with president

Obinna Chima in Uyo and Alex Enumah in Abuja

Attorney General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi, yesterday, disclosed that the federal government would resume the prosecution of some alleged terrorists, including Boko Haram members, in the next two weeks.

Fagbemi made the disclosure in Abuja, at the opening of the 40th Technical Commission and Plenary Meeting of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA). He said the federal government had secured over 500 convictions, and N45 billion forfeitures in two years.

The revelations came as National Security Adviser (NSA), Mallam Nuhu Ribadu, yesterday, said violent extremism in some parts of the country had been on the decline since President Bola Tinubu assumed office in May.
Ribadu made the assertion at the ongoing 19th All Nigeria Editors’ Conference in Uyo, while speaking on the topic, “Oil Theft, Illegal Bunkering, Pipeline Vandalism: Impact on Nigerian Economy.”

He called for patience on the part of the citizenry, saying Tinubu is working hard to address the country’s critical problems.
Fagbemi stressed that the federal government was alive to the issue of bringing suspected terrorists to justice and was finalising efforts to ensure their smooth and successful trial
He said, “Efforts are on to resume the trial of those categories of people. And I think, in the next two weeks, it will be a different story. We are conscious of that issue.

“Facilities are being put in place. Apart from the regular physical mode of trial, we are working on ways to ensure that virtual trial can also be conducted.”
The minister said the adoption of virtual trial was aimed at preventing delay, and added that the government was not shying away from its responsibility of providing funds for the purpose.
The AGF emphasised the importance of regional and international cooperation in order to effectively combat money laundering, terrorist financing, and the financing of proliferation of weapons of mass destruction.

According to him, “Our ability to tackle the most complex criminal activity, money laundering and violent terrorist attacks, is predicated on the capabilities of our supervisory, law enforcement and prosecutorial authorities, and the outcomes that we are achieving point to the need for greater investment in human and technical resources and improved training and capacity development.
“In 2022, we increased the budgets for the Economic and Financial Crimes Commission, Independent Corrupt Practices Commission, and National Drug Law Enforcement Agency by almost 95 per cent. We now have over 1,500 officers dedicated to investigating and prosecuting money laundering across these three agencies alone.

“These sustained investment has seen increased numbers of investigations, prosecutions and convictions consistently since 2021, with 5,118 investigations, 1,509 prosecutions and almost 500 convictions secured, resulting in over N45 billion of illicit proceeds seized.
“We have also made progress in tackling the financing of terrorism and, in particular, I am pleased that we have identified and designated a number of individuals and entities linked to terrorist activity and seized funds linked to them.”

Fagbemi observed that the Nigerian Financial Intelligence Unit (NFIU) had become a global model and had achieved the outcomes envisaged by the passage of its enabling legislation in 2018, which established it as an independent, autonomous unit.
He urged that as GIABA moved towards the conclusion of the second round of mutual evaluations and began preparations for the third round, members should take time to reflect on how they had contributed to strengthening their national AML/CFT/CPF frameworks.
Fagbemi stated, “I believe that the FATF standards are merely the minimum benchmark that we must all aspire to in order to address the serious criminal offences that are prevalent in our countries and across our region.

“Our legal frameworks, policies and institutional capacities must aspire to put in place the foundations necessary to achieve the vision of the Africa 2063 Agenda, of an integrated, prosperous and peaceful Africa, driven by its own citizens, representing a dynamic force in the international arena.
“As we survey the results of this round of mutual evaluations, it is, indeed, clear that more needs to be done across our sub-region to enhance effectiveness based on FATF Standards.”

In a goodwill message, President of the ECOWAS Commission, Dr Omar Touray, commended GIABA and its Director General for the agency’s “laudable performances” in the recent exit of GIABA from the FATF Effectiveness Improvement Programme (EIP).
Touray said the “Commission will continue to provide the needed support to GIABA to sustain the gains of the EIP and address other outstanding issues in the EIP Action Plan, including the recruitment of the Director of Evaluation and Compliance as well as adequately prepare for its next round of mutual evaluation.”
He urged the region not to rest on its oars, as money laundering, terrorism financing and other organised crimes threatened regional peace and sustainable development.
Touray called on member states to continue to take steps to effectively address the strategic deficiencies identified in their AML/CFT systems.
Speaking at the event, also, GIABA’s Director General, Edwin Harris, said the gathering was an attestation that the collective effort in the fight against money laundering, terrorist financing and others forms of transnational crimes urgently required coordination and cooperation.

Harris stated, “GIABA, as a FATF styled region body and specialised ECOWAS institution, is responsible for safeguarding the economies of its member states, will continue to work with both its members and partners in delivering on its mandate in a more meaningful way using the collective expertise and shared vision of member states in strengthening their AML/CFT regimes and increasing advocacy to political leaders on the urgency of demonstrating political will that trickle down at operational and policy levels for a more effective and robust fight against transnational crimes.
“Results from accessed countries thus far published from the second-round show progress has been made in terms of technical compliance across member states.
“However, fundamental major improvements are required in terms of effectiveness.
“In this regard, it becomes a more pressing need that the secretariat works with member states in enhancing effectiveness compliance that will lead to more actions that create deterrence.”

Ribadu: Nigeria’s Security Situation Has Improved under Tinubu

The NSA said violent extremism in parts of the country had been on the decline since President Bola Tinubu assumed office. He pointed out that the country was going through a tough time. But he assured Nigerians that in no distant time, most of the challenges, especially in the area of security, would be addressed.
Ribadu said the country used to record over 1,200 deaths on a daily basis due to criminal activities, but since Tinubu assumed office, there had been a significant drop to about 100 cases. Furthermore, he pointed out that in the South-east, police stations used to be under severe attacks, but that was no longer the case.
The NSA stated that the country’s crude oil production had increased to 1.7 million barrels per day, with the hope of hitting two million barrels per day by next year.

“Work is ongoing, the government is adopting work more and talk less to address the insecurity challenges headlong.”
He appealed to Nigerians to be patient, saying the Tinubu administration is doing everything to improve the security situation of the country.
Ribadu said, “We have given Nigeria to President Bola Tinubu to manage it for us.
“In the last five months, I have been there by his side and have seen how things were and how things are when we started, and hopefully the direction we are going is okay.

“We inherited a tough period. We appeal for patience and understanding. It’s tough times and that is the reality. We are not condemning anyone but that is the truth. Those who are in charge must say the truth, say it as it is, and then hopefully things will be better for you.”
Ribadu also told the editors, “Like I said, my coming is to identify with you. I also appeal to you for support, we are going through tough times. It requires all of us to come together. We are all in it together, it is not going to be for too long. In a matter of time, it will be better.
“In the South-east, when we took over last year, we had 46 police stations attacked, today we don’t have one single one. In the last two months, not a single person had been killed through violent attacks in the South-east, we don’t talk. The leadership we have in our country does understand things a bit better.
“This government is the most transparent ever in the history of Nigeria. Honestly, we will be sincere and do our best.”

Obinna Chima

ProvidusBank Limited, a commercial bank founded in 2016, has taken bold steps to acquire majority stake in Unity Bank Plc, as part of the former’s business expansion plan.

������Ƶ gathered from a reliable industry source that the arrangement which Unity Bank that had been struggling to beef up its minimum capital requirement since 2017, has termed a business combination, was being monitored by the Central Bank of Nigeria (CBN).

“This has been in the works since June this year and they have been updating the CBN on it. Part of the deal is that Providus must have asked for the isolation of Unity Bank’s bad loans. Unity Bank which is big in agriculture financing has been struggling for years,” the source who pleaded to remain anonymous said.

Unity Bank commenced operations in January 2006, following the merger of nine banks with competences in investment, corporate and retail banking. It is one of Nigeria’s leading retail banks with 213 business offices spread across the 36 States and Federal Capital Territory.

In 2018, there was a botched move by the Milost Global Inc., a New York-based private equity to investment $1billion in the bank and since then the bank has been seeking for a preferred suitor.

It recently posted negative results in its recently released financials for the 9-month (9M) period ended September 30, 2023.

Precisely, the bank’s financial results released on the Nigerian Exchange Limited (NGX) had shown loss after tax of N47.917billion, down by 2,461 per cent from profit after tax (PAT) of N2.029billion in same nine months period of 2022.

It had also reported Foreign Exchange (FX) revaluation loss of N38.162 billion, an increase by 70,565 percent from N54.005 million FX revaluation loss it recorded in nine months to September 2022.

Its gross income in the nine month period was also N38.183 billion, which was a decrease by 10 per cent, from N42.292 billion gross income recorded in the comparable period of 2022.

Commenting on the results, the Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun, had said the bank was focusing on its efforts to recapitalise the institution, aggressively drive asset creation and innovate with products to compete favourably in new markets.

“The bank enjoys market confidence which will enable the institution thrive better in the months ahead with increased business conversion, profitability and growth needed to achieve sustainable returns,” she had revealed.

On the other hand, ProvidusBank founded by Walter Akpani, was licenced by the CBN during the tenure of the immediate past Governor, Godwin Emefiele.

The financial institution has strong IT infrastructure and digital channels which it deploys to provide service to its customers.

ProvidusBank is an innovative financial institution that provides personal, private, corporate, commercial and digital banking products and solutions. Its tailored financial services delivery includes: ������Ƶ Advisory, Portfolio Management, Personalised Relationship Management, Fast-tracked Service delivery and Self-service solutions.

Obinna Chima

One of the leading investment immigration wealth management companies, Optiva Capital Partners, has reaffirmed its dedication to help Nigerians to save on what they would have been spending on through its bespoke investment immigration services.

The Managing Director/CEO of the company, Ms. Jane Kimemia, who spoke during an interactive session with the media, through the Citizenship By Immigration (CBI) programme, clients receive tremendous value and savings on the scarce foreign exchange that comes back in developing Nigeria.

“We are looking at value, costs, and value across generations as well. So you get second citizenship it doesn’t stop you from continuing your business, but it gives you global access. So it is not a spend but an investment and it is savings,” she explained.

Shedding more light on the savings and value inherent in the investment immigration services, Kimemia stated that with, “children’s education for example, investment immigration becomes a vehicle for our clients to protect, to grow, to enhance, to diversify their wealth. For somebody looking for permanent residency or to invest in a programme in Canada, their children’s education say in University of Toronto, international students for a Bachelors programme will be paying about $60,000 annually, but as permanent residents they will be paying just $6,000 per annum.”

To further buttress the savings on investment through investment immigration, the Optiva Capital Partners CEO told the story of one of their clients.

According to her, “one of our clients had arranged for their daughter to go and study medicine in the United States of America, but they have a Grenada passport, but they looked at the options and realised that Grenada has one of the finest schools of medicine, Saint George’s University, and their daughter will go to University as a resident of Grenada, as a citizen of Grenada, and will pay $20,000 per annum as against $100,000 per annum. So, the benefits are immense.”

Kimemia, also cited another investment immigration programme, EB5 programme, which offers steady return on investment.

According to her, “with the EB5 programme, there is return of five per cent because client will invest $800,000. That is guaranteed return for five years, but also remember that their end goal is citizenship, green card, leading up to citizenship, but in the meantime there is a return on investment because every year they will be earning about $40,000 from that particular investment.

“Very importantly they have invested in a currency that safeguards the value over time. And lastly think about the return on investment across generations because once you obtain citizenship or permanent residency, it is for you and generations to come, which translates to access to world class education opportunities, trade opportunities.”

She therefore stated that, “with investment immigration also, clients optimize their spending. If you are a Canadian permanent resident, you have an opportunity to optimize your spending. In education for instance, the fees you will be paying as an international student is like times twelve what you will be paying as a Canadian resident so that is huge saving and a return on investment.”

With regard to return on investment, she restated that, “when it comes to investment immigration, you are looking at return on investments not only in financial terms, it is in both direct and indirect returns. Some of our clients are traders, people in business, executives, they are high net worth individuals. Global access is very important to them so second citizenship or permanent residency in a number of jurisdictions is important to them which means that they have got the world of opportunities because there are so many people who have lost opportunities to do business because they were carrying one passport, they have to go through long visa queues to get access to some markets. So when you think of return on investment on immigration investment, first of all is that global access and that gives them access to business that they ordinarily would not have accessed.”

The Optiva Capital Partners CEO also explained that, “If you have Canadian permanent residency, which is a federal start-up programme, it enables our clients to invest in start-ups which are legislated and vetted programmes by the Canadian government such that our clients have access to invest in jurisdictions that they would not have had access to.”

Kimemia further explained Optiva’s philosophy to protect wealth, grow wealth, enhance wealth, and optimise wealth. According to her, “we work with our clients to protect their wealth, to grow their wealth, to enhance and optimize their wealth, to have their wealth work for them across generations.

“Looking at our current economic situation, the depreciation of the Naira, we have people who need to pay school fees in US Dollars, so we work with this kind of persons on how to optimise their wealth and safeguard a portion of their wealth over time, and that is what protection of wealth is about. “Then you talk about growth when you have already protected so you look at our investment options, they are in other currencies.

“That diversification is very important, depending on what are their risk profile. Then there is the enhancement agenda which is the diversification because the rules of investment is that no matter how strong a basket is don’t put all your eggs in one basket, so we encourage diversification in assets, in currency, and in jurisdiction.

“Lastly is optimisation because when you have protected your wealth, growing your wealth, when your wealth is well diversified, you can optimize your wealth, you bring in investment immigration, you are paying less but you get more, so that is how we are helping our clients and ensure their money is working for them.”

Obinna Chima

One of the promises made by President Bola Tinubu on assumption of office was that his administration would cut down on the over-reliance on borrowing for public expenditure.
In fact, Tinubu said he was going to curtail government’s borrowing so as to reduce debt service burden on the country.
Besides, Tinubu told Nigerians that his “fuel subsidy is gone” pronouncement on May 29 would lead to significant savings and resource re-allocation for the country.

“We shall instead re-channel the funds into better investment in public infrastructure, education, healthcare and jobs that will materially improve the lives of millions,” he had said.
But many Nigerians were taken aback when last week the president sought the approval of the National Assembly for his government to access fresh external loans of $7.8 billion and €100 million as contained in the 2022 – 2024 borrowing plan of the federal government, despite having full knowledge of the country’s debt challenge.

The request for the fresh loans was contained in a letter the president sent to both chambers of the National Assembly, which was read at plenary by Senate President, Godswill Akpabio.
Tinubu explained that the Federal Executive Council (FEC) under former President Muhammad Buhari had approved the loan facility on May 15, 2023, to finance infrastructure, health, education, agriculture, security and other sectors. He said African Development Bank (AfDB) and World Bank Group (WBG) had indicated interest to assist the country in mitigating the economic shocks and effects of recent reforms with a sum of $1 billion and $2 billion, respectively.

Tinubu said the foreign loans became necessary in order to bridge the financial gap and return the economic activities of the country to normalcy. He noted that if the loan request was granted, the funds would be used to develop infrastructure, agriculture, health, education, water supply, security and employment, as well as financial management reforms.
He said, “The project cuts across all sectors with specific emphasis on infrastructure, agriculture, health, education, water supply, security and employment as well as financial management reforms, among others.”

However, the move has elicited reactions from Nigerians, considering that the country appears to be approaching a debt trap.
More so, since the president had informed Nigerians that about N1 trillion was saved from petrol subsidy removal, less than two months after the policy was scrapped, the expectation was that the savings would have increased significantly, with the funds deployed to address the issues he was seeking to borrow for.
With the country’s total public debt at N87.38 trillion at the end of the second quarter of 2023, the fresh loans the Tinubu administration seeks to raise would definitely elevate the number further.

The items listed on the N2.17 trillion supplementary budget, which was passed by the National Assembly last week, are also not encouraging, as they seem to show that the present administration has decided to continue on same path as the Buhari government, by getting into debts and ambitious recurrent expenditure. Indeed, considering the state of the country’s finances, many believe no government that means well for its citizens would be talking about spending N7.20 billion for electrical/mechanical installations, buildings and infrastructure at the president’s and vice president’s residences, offices, State House Auditorium, Presidential and Ministerial Airport Chalets. And no serious government would plan to spend N1.96 billion on vehicle purchase for the Presidency and the First Lady’s office, and N59 million for maintenance of State House Lagos Complex and Guest Houses, among others, at a time when the administration is asking Nigerians to tighten their belts.

In place of vehicle importation that further depletes the country’s scarce forex, the federal government can take a leaf out of the Lagos State government’s book.
Lagos State Governor Babajide Sanwo-Olu, recently, inaugurated a new vehicle assembly plant through a joint venture between the state government and CIG Motors – a Chinese automobile company. The facility will be jointly-run by the state government and its partner for the production of different classes of brand-new cars and already, 2,000 units of brand new GAC vehicles had been successfully assembled in the state, ahead of the formal opening of the facility.
Why didn’t Tinubu just for once show leadership by personal example and embrace made in Nigerian SUVs or cars?

Sure, this would have put our lawmakers in a difficult situation, and rather than opt for imported SUVs, they would have had no choice but to embrace locally assembled cars or SUVs. As a matter of government policy, it should be made mandatory for all public office holders patronise made in Nigeria products as an initial first stop to turning the economy away from  import-dependent to home-grown.

This is an initiative that ought to be embraced by all levels of government in the country in order to reset Nigeria, create jobs and strengthen the naira.
Imagine how much foreign exchange would have been saved from this singular move. But we missed the opportunity yet again.
It is important to note that by securitising the country’s NLNG dividends, as reported a few days ago, the government is also mortgaging the future income streams of Nigerians.

Currently, the country is feeling the challenge of high debt service cost, with only a small fraction of its financial receipts always available for the much-needed investment in infrastructure.
The implication of the fresh borrowing is the potential of an imminent debt trap in which the country would neither be able to meet its debt service obligations nor meet its obligation to its over 200 million citizens through funding of capital and recurrent expenditure.
This comes with numerous other socio-economic consequences impacting on some of the key Sustainable Development Goals (SDGs) of poverty, hunger, health, education, as well as issues of social unrest, crime.

Clearly, if debt service cost continues to claim an increasingly large proportion of government revenue, fewer resources would be available to the government to meet its other obligations and fund infrastructure, a situation which could see the government deploying more of its borrowed funds to meet recurrent expenditure.

That is why, just like President of the Trade Union Congress (TUC), Festus Osifo, recently demanded, the Tinubu administration should come clean on the amount it has saved through the removal of petrol subsidy.
Since the president made the announcement that N1 trillion was saved from petrol subsidy removal in July, nothing else has been said about the amount that had accrued so far, thereby fuelling speculation that petrol subsidy payment has returned.

Osifo, while speaking during a programme on Arise News Channel, demanded to know where the money saved since the removal of petrol subsidy had gone into. He explained that since the government announced that N1 trillion had been saved, there was no reason to continue to borrow.

Osifo said, “The President and Commander-in-Chief on his own came and said the country had saved N1 trillion. The federal government went everywhere to announce that if subsidy is removed, it’s going to save substantial money.”

He added, “We don’t expect them to go everywhere and start borrowing money. They told us they are going to save money. So where is the money that you have saved and how have they deployed this money?”

The Tinubu government must tell Nigerians about the savings from petrol subsidy removal. In addition, it has to work towards improving domestic revenue mobilisation, block leakages, improve tax efficiency, and unlock opportunities, especially, at the sub-national level. It also has to tackle crude oil theft.

There is also an urgent need for leadership at the federal and state levels to embark on fundamental and structural changes that would make them look more inward and save the country from a debt crisis.

Each of the 36 states has massive natural resources that remain relatively docile. Government at all levels must fast-track initiatives that would unlock the private sector-driven potential so as to stimulate the country’s Gross Domestic Product (GDP).