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  • Banking: A moment of decision

    Banking: A moment of decision

    Year 2026 promises to be one of the most remarkable years in a decade. It will see the emergence of stronger banks, higher foreign reserves projected at $51 billion and perhaps, a single digit inflation. It is part of the long-term benefits of the critical economic reforms embarked by the fiscal and monetary authorities to strengthen the financial system and economy, reports Assistant Editor, COLLINS NWEZE

    With expected N4.14 trillion new capital being raised in the ongoing bank recapitalisation programme, and over 21 banks already met the minimum capital requirement, this year will turn out a significant milestone in the economy.

    Aside recapitalisation, inflation numbers are expected to sustain decline while foreign reserves accretion will be sustained.

    The CBN had, on March 28, 2024 announced a two-year bank recapitalisation exercise which commenced on April 1, 2024. The recapitalisation plan requires minimum capital of N500 billion, N200 billion and N50 billion for commercial banks with international, national and regional licences respectively. The 24-month timeline for compliance ends on March 31, 2026.

    CBN Governor, Olayemi Cardoso, said the apex bank will be enforcing stronger governance, greater transparency, and firmer accountability to protect raised funds.

    He disclosed that several banks have already met the new capital thresholds, while others are advancing steadily and are well positioned to comfortably meet the March 31, 2026 deadline.

    Banks meeting or exceeded the new requirements is a clear testament to the depth, resilience, and capacity of Nigeria’s banking sector,” Cardoso stated.

    The CBN has equally established a dedicated Compliance Department, now fully operational, with mandates covering financial crime supervision, market conduct, enterprise security, corporate governance, and Environmental, social, and governance (ESG).

    According to the CBN boss, the process enforcing stronger controls on raised funds is ongoing with the redesigning of the credit risk framework expected to ensure that raised funds are well managed by financial institutions.

    Previously, banks were awash with post recapitalisation funds, with analysts predicting that without proper risk management policies and regulatory controls, chances of misapplying such raised funds through risky loans remain high.

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    President, Association of Bureaux De Change Operators of Nigeria (ABCON), Dr. Aminu Gwadabe, said:  “As recapitalisation progresses, we are redesigning the credit risk framework to enforce stronger governance, greater transparency, and firmer accountability across the sector. We are determined to break the boom and bust cycle that has accompanied past recapitalisation efforts”.

    He explained that already, the CBN Credit Risk Management System (CRMS) is web-enabled, allowing banks and other stakeholders to dial directly into the CRMS database to render statutory returns or conduct status enquiry on borrowers. Also, the CBN is in the process of integrating the CRMS with other systems operating in the banks to make it more efficient.

    He also said that stability of the exchange rate will be sustained as more foreign reserves accretion, and foreign capital inflows find their way into the domestic economy.

    In a report titled: “Nigeria’s macro headwinds trigger bank recapitalisation” Deloitte, a global accounting and audit firm, put the total funds to be raised in the recapitalisation exercise which ends on March 31, 2026 at N4.14 trillion.

    It said the upward review of banks’ capital base from N50 billion to N500 billion depending on the type of licence held by the bank, remains an essential action required to boost capital adequacy needs of the Nigerian financial industry.

    Nigeria banks’ capital adequacy, the report says, has been significantly impacted by macroeconomic challenges such as high inflation and interest rates, currency volatility and forex illiquidity.

     “The upward revision will ensure that Nigerian banks have the capacity to take on bigger risks and stay afloat amid both domestic and external shocks. It also means increased liquidity position of banks, which will help broaden their loss-bearing capabilities,” the report said.

    Continuing, Cardoso said Nigeria’s banking system remains fundamentally sound and resilient, a cornerstone of our financial stability.

     “At the same time, we remain vigilant to emerging risks, including cyber threats, credit-concentration pressures, and operational vulnerabilities. These are being addressed through strengthened risk-based supervision and our ongoing transition to Basel III, which will further bolster resilience, improve capital quality, and strengthen liquidity monitoring,” he said.

    The CBN boss disclosed that with just four months to the conclusion of the recapitalisation exercise, the recapitalisation process remains firmly on track.

     “As we strengthen the capacity of our banks, stress-testing this year confirms that Nigeria’s banking sector remains fundamentally robust. Key financial soundness indicators overwhelmingly satisfied prudential benchmarks during the year,” Cardoso added.

    He said the apex bank is reinforcing operational discipline to ensure the financial system serves all Nigerians reliably.

     “Our starting point was a comprehensive, end to end review of the entire cash lifecycle: from production, to transportation, to distribution, and eventual access by consumers. This holistic assessment enabled us to address root causes rather than symptoms”.

    “As a result, we recalibrated our cash printing models, issued guidelines on the optimal ATM to card ratio, strengthened requirements for CBN approval before ATM or branch closures, enforced sanctions on banks whose ATMs fail to dispense cash, and intensified supervision of payment agents and POS operators nationwide,” he said.

    Inflation Rate decline

    High inflation which stuck in double digits for most of the last 35 years and risen to 34.6 per cent as of November 2024 has dropped to 14.45 per cent in November 2025.

    At $46 billion, foreign reserves can cover over 10-months imports, while the naira has remained stable across markets. FX inflows reached $20.98 billion in the first 10 months of 2025, a 70 per cent increase over total inflows for 2024.

    However, Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, said headline inflation is projected to rise temporarily to 30.5 per cent in December, driven by base-year effects and the adoption of a new methodology. However, inflation is expected to moderate back to the teens by February.

    Finding showed that over the past 12 months, Nigeria’s economy has transitioned from crisis management to laying the groundwork for a sustainable recovery. After nearly a decade in which real GDP growth averaged about two per cent, reforms have restored momentum and confidence in our broad macroeconomic environment.

    “Our economy grew by 4.23 per cent in the second quarter of 2025, the strongest pace in four years, driven by improvements in telecommunications, financial services, and oil production.

    “More importantly in terms of long-term stability, inflation, while still high, has moderated consistently. From a peak of 34.6 per cent in November 2024, it has more than halved to 16.05 per cent in October 2025. This marks seven consecutive months of disinflation. Food inflation, the largest single component of the basket, fell to 13.12 per cent in October, down from 16.87 per cent in September and 21.87 per cent in August,” Cardoso said.

    He said that the significant, steady decline in inflation is restoring real purchasing power for households and businesses. It also demonstrates disciplined execution and Nigeria’s return to orthodox monetary policy.

     “We continue with determination to bring inflation down further. The current double-digit rate cannot be acceptable. Price stability is the foundation of sustainable growth. Our transition to an inflation targeting framework is gaining traction. We have improved data analytics, strengthened communication, and ended monetary financing of fiscal deficits. These actions have strengthened monetary policy transmission and anchored expectations,” he said.

     “Our models project continued disinflation in 2026, helped by stronger domestic production, improved FX liquidity, and more disciplined liquidity management. As inflation moderates and becomes firmly anchored, we will calibrate the policy rate in line with evolving data”.

     “Domestic and international observers alike have noted Nigeria’s “huge turnaround” in macroeconomic management. Our commitment remains clear: monetary policy will stay evidence-based, data-driven, and unwavering in its pursuit of price stability.”

    Balance of payment to sustain rally

    The ongoing reforms in the financial sector have contributed to the growth of the Balance of Payments (BOP) surplus and ongoing surge in diaspora remittances and inflows into external reserves.

    The $4.60 billion BOP surplus in the third quarter of 2025, marks a turnaround from the deficit position in the preceding quarter.

    The performance underscores strengthening external sector fundamentals, firmer investor confidence, and the continued impact of reforms in the foreign exchange market, monetary policy implementation, and the domestic energy sector.

    Already, Nigeria recorded an overall Balance of Payments (BOP) surplus of $4.60 billion in the third quarter of 2025, marking a turnaround from the deficit position in the preceding quarter, according to data released by apex bank.

    The improvement was supported by a sustained current account surplus of $3.42 billion, supported by stronger trade performance, resilient remittance inflows, increased financial flows, and continued accretion to external reserves. The CBN reported that the goods account remained in surplus at $4.94 billion, reflecting higher export earnings during the period.

    “Exports increased to US$15.24 billion in Q3 2025, from US$14.90 billion in Q2 2025, on account of increases in crude oil and a refined petroleum products exports. The country is gradually switching from a net importer of refined petroleum products to a net exporter.  Import of petroleum products decreased by 12.7 per cent to US$1.65 billion,” the CBN said.

    Also, net out payments in the services account increased to US$4.07 billion in Q3 2025, from US$3.74 billion in Q2 2025.

    “The increase in net out- payments for services was due to increases in net import of transport, travel, insurance, computer & information, other business, and Government services not included elsewhere. The debit balance in the primary income account increased significantly to US$2.95 billion in Q3 2025, from US$1.25 billion in Q2 2025.” The report said.

    “This was largely attributable to repatriation of reinvested earnings by domestic banks on their foreign investments abroad especially on direct investments. The secondary income account balance decreased slightly to US$5.50 billion in Q3 2025, from US$5.51 billion in the preceding quarter. Personal transfers (workers’ remittance) from Nigerians in diaspora slightly decreased in Q3 2025 to US$5.24 billion, from US$5.30 billion in Q2 2025,” it added.

    How the economic reforms started

    The CBN had embarked on a series of bold reforms to attract more foreign capital to the economy, achieve price and exchange rate stability.

    In 2023, the new administration and the CBN-led by its Governor, Olayemi Cardoso liberalised the foreign exchange market, stopped central bank financing of the fiscal deficit, and reformed fuel subsidies. The government also strengthened revenue collection and took strategic steps to reduce surging inflation rate.

    Since these reforms were implemented, international reserves have increased, and people can now access foreign exchange in the official market.

    Besides, Nigeria successfully returned to international capital markets last December and was recently upgraded by rating agencies. A new domestic, private refinery is positioning Nigeria up the value chain in a fully deregulated market.

    CBN’s policies, including the currency reforms, led to investment inflows from abroad, and reduced interventions in the domestic forex market.

    The unification of exchange rates and the clearing of over $7 billion FX backlog raised the country’s investment outlook, with multilateral organizations, like the World Bank describing it as bold intervention to improve the economy’s sustainability in the long run.

  • A defining year for food security

    A defining year for food security

    The several federal and sub-national governments policy drive will be a major determinant in the direction the agriculture sector moves this year. It will also to a large extent, determine the stability of food prices or otherwise in the market. This is why analysts submit that the agricultural sector enters 2026 facing a defining moment, where the promise of recovery confronts the weight of climate shocks, insecurity and rising input costs. The year ahead will test whether policy reforms, state-led investments and private capital can translate resilience into lasting food security, DANIEL ESSIET writes.

    The agricultural sector enters 2026 at a decisive crossroads, balancing cautious optimism with deep structural risks that will ultimately determine whether food security improves or deteriorates. After years of shocks from climate volatility, insecurity and rising production costs, agriculture is projected to remain a central pillar of economic stability. Yet pressure is intensifying on policymakers to translate ambition into measurable, market-visible outcomes.

    The sector has continued to demonstrate resilience, averaging about five per cent annual growth between 2017 and 2023 despite mounting headwinds. Analysts say this underlying strength explains why the Federal Government remains confident that output gains recorded in recent seasons can be sustained this year.

    Minister of Agriculture and Food Security, Senator Abubakar Kyari, has repeatedly argued that official survey data point to “encouraging growth in major staples,” citing improvements in rice, maize and climate-resilient wheat cultivation. According to him, these gains are expected to moderate food prices and ease inflationary pressure on households.

    That optimism, however, is sharply contested by independent market forecasts. Commodity analysts warn that Nigeria may still experience severe price volatility through 2026 if structural constraints persist. Market projections highlight elevated risks in maize, rice, sorghum and soybeans, driven by rising logistics costs, insecurity in food-producing belts and sustained increases in fertiliser and agrochemical prices. The divergence between official forecasts and market outlooks underscores what experts describe as a widening “credibility gap” between production statistics and real market behaviour.

    Climate change remains the single most destabilising variable in the outlook for 2026. Recent agricultural performance surveys reveal that between 17 and 18 states are now exposed annually to destructive flooding, while prolonged dry spells continue to weaken crops in the North-Central and parts of the North-West. The surveys reported crop losses of up to 60 per cent in some regions, with maize, cassava, rice and yams among the worst affected. Pest infestations have compounded these losses, as Fall Army Worm outbreaks swept through 26 states, exploiting weakened crop resistance following erratic rainfall patterns.

    Insecurity continues to cast a long shadow over output projections. Borno, Zamfara and Katsina alone account for tens of thousands of hectares abandoned due to insurgency and banditry, a trend analysts warn could undermine any production gains if rural security is not stabilised ahead of the 2026 planting cycles. Livestock losses have been equally severe, with up to 40 per cent of herds lost in parts of the North-West to theft, disease and displacement.

    Despite these risks, state-level interventions are reshaping the sector’s medium-term outlook. Jigawa, Kano, Kebbi and parts of Borno are emerging as anchors of recovery, supported by large-scale investments in mechanisation, irrigation, certified seeds and extension services. Jigawa State, for instance, is positioning itself as a northern agricultural hub through multi-million-dollar investments in integrated agricultural parks, livestock development and agro-machinery manufacturing. Governor Umar Namadi has framed agriculture as “the backbone of society,” noting that nearly 90 per cent of the state’s population depends on the sector for livelihoods.

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    Kano’s Agro-Pastoral Development Project has already delivered tangible gains, with farmers reporting unprecedented access to tractors, harvesters and processing facilities. In the Middle Belt, Benue, Kogi and Taraba remain critical to national food supply, particularly for yams and cassava. Analysts caution, however, that their performance will hinge on effective flood mitigation and expanded dry-season irrigation following consecutive years of weather-induced losses. Benue State’s push into tractor assembly and dry-season farming is widely viewed as a strategic hedge against rainfall dependency.

    Southern states are expected to play a growing role in value addition rather than volume expansion. Ogun, Oyo, Ondo, Ekiti and Edo are strengthening their positions in poultry, cocoa, oil palm and agro-processing, while Lagos continues to consolidate its status as Nigeria’s food processing and logistics hub. State officials say investments in cold-chain infrastructure and digital agriculture are critical to cutting post-harvest losses and stabilising urban food supply. The Commissioner for Agriculture and Food Systems, Ms Abisola Olusanya, said Lagos is “creating a resilient and competitive food processing sector that promises to drive economic prosperity and ensure food security in the future.”

    Livestock is forecast to become one of the fastest-growing sub-sectors through 2026, following the rollout of the National Livestock Growth Acceleration Strategy. With Nigeria’s cattle population nearing 65 million and poultry exceeding 800 million birds, policymakers see ranching, feed production and animal health services as new engines of rural income. Disease management, access to finance and security, however, will determine whether this potential translates into sustained growth.

    The fertiliser market

    Input markets remain a major vulnerability. Global fertiliser forecasts suggest continued price volatility into 2026, with urea, phosphate and potash demand under pressure from rising costs and shifting trade policies. For Nigerian farmers, this translates into affordability challenges that could cap yield improvements unless domestic blending capacity and subsidy mechanisms are effectively deployed.

    In 2021, the Nigeria Sovereign Investment Authority signed landmark agreements with OCP of Morocco, Akwa Ibom State, NNPC, the Gas Aggregation Company of Nigeria, the Nigerian Content Development and Monitoring Board and the Fertiliser Producers and Suppliers Association of Nigeria for the development of a $1.5 billion plant to produce ammonia and diammonium phosphate under its Gas Industrialisation Strategy. Industry leaders and agricultural experts have since intensified calls for stronger government backing to accelerate the Akwa Ibom Fertiliser Complex, describing it as critical to food security, job creation and economic diversification.

    Planned for Ikot Abasi in Akwa Ibom State, the project is a joint venture between NSIA and OCP Africa, a subsidiary of Morocco’s OCP Group. It is designed to leverage Nigeria’s natural gas reserves alongside Morocco’s phosphate resources to produce ammonia, DAP and NPK fertilisers. Experts say the plant will reduce reliance on imports, conserve foreign exchange and help farmers access affordable, high-quality fertilisers tailored to local soil needs. About 60 to 70 per cent of the ammonia will be exported to Morocco, with the balance deployed domestically.

    The Director-General of the African Centre for Supply Chain, Dr Obiora Madu, described the project as a “cornerstone” for Nigeria’s agricultural and economic transformation, noting that it represents a model for continent-wide cooperation and positions Nigeria as a regional fertiliser powerhouse. Similarly, the Director-General of the Pan-African Fertiliser Industry Association, Dr Innocent Okuku, said the complex would boost fertiliser availability, stabilise prices and raise farm yields, arguing that such investments are vital for food security and job creation.

     Akwa Ibom State Governor, Pastor Umo Eno, has pledged to partner with NSIA and OCP Africa to advance the project, inaugurating a state-led team to work directly with investors. NSIA’s Managing Director, Aminu Umar-Sadiq, confirmed that the project is expected to generate about 500 direct jobs and up to 20,000 indirect jobs across construction, logistics, distribution and agro-dealer networks, adding that it forms part of a broader partnership with OCP Africa in the state.

    Dangote Fertiliser has also emerged as a dominant force in Nigeria’s agricultural supply chain. The President of the Dangote Group, Aliko Dangote, has disclosed plans to list Dangote Fertiliser on the Nigerian Exchange this year, with the Dangote Refinery expected to follow in 2026. Speaking at the Afreximbank Annual Meetings in Abuja, he forecast that Africa will soon no longer need to import fertilisers, adding that the group is on track to become the world’s largest producer of urea.

    Across the continent, fertiliser manufacturing is set to rise further in 2026, with companies such as Dangote, Yara, Israel’s ICL and OCP continuing to commit billions of dollars to expansion and new production facilities. This is complemented by the growth of smaller, decentralised plants supplying cost-affordable, environmentally friendly fertilisers to smallholder farmers.

     Momentum has also been reinforced at the policy level. In 2024, African heads of state endorsed the Nairobi Declaration at the Africa Fertilizer and Soil Health Summit, committing to improved access and affordability of certified organic and inorganic fertilisers. Analysts believe this signals a stronger commitment by member states to invest in domestic manufacturing and blending capacity, harnessing Africa’s own resources.

    Powering the future of food

    Beyond primary production, Lagos is increasingly positioned as a hub for food system innovation.

    The state hosts several automated processes aimed at reducing food waste, cutting costs and integrating precision agriculture with food technology. Global food and beverage companies continue to expand operations in Lagos, attracted by its skilled workforce, strong logistics and proximity to major markets. Officials say ongoing projects are creating new market opportunities for local farmers while reinforcing the state’s agricultural prominence.

    Ms Olusanya noted that the government stands ready to help companies navigate locations, connect with utilities and access support programmes to maximise their chances of success.

    Looking ahead, Nigeria’s agricultural outlook for 2026 is neither uniformly bullish nor irreversibly bleak. It is, above all, a high-stakes transition year. If mechanisation, irrigation, extension services and security interventions align effectively, output gains could stabilise food prices and support broader economic recovery. If they do not, climate shocks, insecurity and input inflation may overwhelm policy efforts. As the Executive Director of the National Agricultural Extension and Research Liaison Services, Prof. Emmanuel Ikani, warned while presenting recent survey findings, Nigeria urgently needs “more effective mechanisation programmes, pest control measures, affordable farm inputs, and improved early warning systems” to prevent recurring crises.

    Ultimately, 2026 will test whether Nigeria can move beyond seasonal interventions toward a truly resilient, data-driven and climate-smart agricultural economy. The outcome will shape not only food availability and prices, but also the broader trajectory of growth, inflation and social stability in the years ahead.

  • New drivers for real estate recovery

    New drivers for real estate recovery

    The real estate sector is entering 2026 with cautious optimism, as new financial instruments, tax reforms and infrastructure investments begin to reshape the market, OKWY IROEGBU- CHIKEZIE  reports.

    With a soaring housing deficit has remained a source of concern to both government and stakeholders in the country. The nation’s housing shortfall, estimated by the World Bank at about 28 million units, experts insist, cannot be closed without long-term, affordable mortgage financing.

    Looking into their crystal balls, analysts said sustained demand across residential housing, digital infrastructure, neighbourhood retail outlets and office spaces will underpin an anticipated moderate growth in the sector, with the Ministry of Finance Incorporated Real Estate Fund (MREIF) emerging as a major catalyst.

    The MREIF, riding on the N1 trillion fund, structured as a public-purpose, private sector–led initiative, is designed to address the nation’s deep housing deficit while stimulating construction and allied industries.

    The MREIF seeks to address this by providing funding to developers on the supply side and low-cost mortgages to homebuyers on the demand side.

    According to the Head of ARM Investment Managers, Biyi Adekunbi, the fund offers mortgages at interest rates as low as 12 per cent, with repayment tenors of up to 20 years. He said the structure, backed by federal government participation and private capital, was designed to ensure stability and sustainability.

    “The idea is to provide long-term, low-interest financing that works for both developers and homebuyers,” Adekunbi said, noting that the fund is accessible to salaried workers in both the public and private sectors, self-employed Nigerians who meet income and credit criteria, and Nigerians in the diaspora seeking home ownership.

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    ARM Investment Managers, the fund managers, have so far raised N250 billion for on-lending through primary mortgage banks, with N100 billion contributed by the federal government and the balance sourced from the private sector. Several mortgage banks have already begun accessing the facility. Homebase Mortgage Bank recently announced it secured an initial N3.5 billion tranche, which it said would be deployed to expand access to affordable housing nationwide.

    Industry players believe such initiatives, alongside government-backed infrastructure projects like the Renewed Hope Housing Scheme and the Lagos–Calabar Coastal Highway, could significantly lift sector performance in 2026. However, they argue that the full impact will only be realised if government reduces the burden of infrastructure provision on developers and harmonises multiple taxes across states and local governments.

    Growth, they say, is likely to remain concentrated in major urban centres such as Lagos, Abuja and Port Harcourt, driven by rapid urbanisation, population growth and rising interest from diaspora investors.

    Chief Executive, M.I. Okoro and Associates, Dr. Meckson Okoro, identified access to finance, land availability and infrastructure as the critical factors shaping housing affordability in the new year. He called for direct land allocation by government and greater public investment in roads, power, water and mass transit systems to reduce overall housing costs.

    “If government provides basic infrastructure, developers will not have to price those costs into homes,” Okoro said. He also advocated integrating solar power solutions into federal housing estates to cut energy costs and reduce reliance on generators.

    Diaspora investors, while eager to participate, continue to raise concerns over fraud and weak enforcement. A diasporan and Captain, Nigeria UK Golfing Association, Mr Fred Adegeye, lamented what he described as widespread losses suffered by Nigerians abroad at the hands of fraudulent developers, land grabbers and even family members.

    “An uncountable number of Nigerians in the UK, US and Canada have lost millions to fraud.If stricter laws are enforced and people see that offenders are punished, confidence will return. I speak from personal experience,” Adegeye said.

    Tax reforms introduced by the federal government are also expected to play a defining role in shaping market outcomes in 2026. The President ,Nigerian Institution of Estate Surveyors and Valuers, Mr Victor Alonge, said the new tax regime would have a positive impact on real estate investment and home ownership.

    “The new tax law is actually a positive thing for the real estate sector,” Alonge said.

    He explained that small-scale businesses within the construction value chain had been exempted from certain taxes, describing the approach as consistent with practices in advanced economies.

    According to him, value-added tax has been removed for the informal segment of the construction industry, while larger firms can offset some VAT costs through incentives such as support for local production.

    “These savings will ultimately strengthen mortgage financing and improve access to housing. So it’s something we need to see as positive for our industry,”  he said.

    Chief Operating Officer , QShelter Ltd., Mr Adegbenga Alamu, said the reforms would also reduce borrowing costs for homebuyers. “The interest paid on a mortgage is now deductible before tax computation, making borrowing cheaper.For those of us from banking, if I have cash, I would borrow. Debt is cheaper and better with the new law,” he said.

  • Year of fleet, infrastructure expansion

    Year of fleet, infrastructure expansion

    As operators , players and regulators file the flight plan for 2026 ,  achieving  headwinds for the strategic industry  would require  continuation of on – going rehabilitation of airport and air navigation infrastructure and other interventions intended by the Federal Government to change the face of the air transport ecosystem and passengers’ travel experience. As 2026  unfolds,  industry watchers look forward to resolution on issues bordering on  concession of airports, sustainability of existing and fledgling carriers as well as  automation of airports’ revenue points. Significantly, parameters to achieving robust regulation for the sector, hurdles around leasing of airplanes , the foray of State Governments into airline/cargo business and other developments will be on the burner , writes KELVIN OSA – OKUNBOR

    As the aircraft of the aviation sector taxies into the runway for Flight 2026 take – off, expectations are high of the series of activities lined up for the months ahead as the on- going refurbishment of the Murtala Muhammed International Airport (MMIA), Lagos consolidates.

    Industry watchers are optimistic that the Federal Government’s decision to plough over N712 billion into the project will change both the ambience and functionality of the premier gateway into the country.

    The project , which started last year is already gaining traction as construction work is advancing around the Lagos International Airport.

    Experts and industry watchers say the progress of the  project will be a major shift in  aviation infrastructure, demonstrating the Federal Government’s desire to bring airport facilities up to the required global standards.

    Speaking in an interview, Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mrs Olubunmi Kuku said the 2026 will be a defining moment for the airport authority as it recalibrates its strategy to improve airport infrastructure and other interventions that will improve the travel experience for users of the facility.

    Kuku also  outlined several key plans for 2026, primarily focusing on completing the transition to a fully cashless operation and leveraging this to reinvest in infrastructure and cargo development.

    The FAAN boss said the authority as part of activities to look forward to in 2026 is the full implementation of the cashless policy, for which it has set the first quarter as deadline.

    She said : “ This initiative, which began its pilot phase in late 2025 at the Lagos and Abuja airports, is expected to increase revenue collection by 75 percent , with the ultimate goal of tripling revenue within the first year of full implementation. The additional funds are earmarked for infrastructural development.Funds generated from the new revenue streams, along with other financing efforts, will be strategically reinvested into improving infrastructure across Nigerian airports. This includes addressing issues like aging runways and completing ongoing rehabilitation works to move away from “haphazard” fixes to long-term structured improvements.

    “A major focus for 2026 is transforming Nigeria into a dominant cargo hub for West Africa, shifting from being primarily import-driven to a strategic gateway for exports.

    “ FAAN aims to align with global best practices through partnerships with international experts in ground handling, logistics, and management. This also involves closing International Civil Aviation Organization (ICAO) audit gaps and enhancing staff capacity through certified training programs.

    “Overall, 2026 is viewed by FAAN management as a year of significant progress and accomplishment, focused on efficiency, transparency, and elevating the Nigerian aviation experience to global standards.”

    Besides the airport authority, watchers of the aviation ecosystem look forward to how the Federal Government will navigate the contention around the concession of some airport terminals, which is expected to migrate into private sector management.

    Speaking on the development, The newly elected President of the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), Comrade John Ogbe said managers should  focus in 2026 on improving workers’ welfare, fostering an inclusive union environment, and engaging in constructive negotiations with industry stakeholders.

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    Ogbe said the welfare of ATSSSAN members will be the central focus of the industry ,  ensuring the union is truly run by and for its members.

     He intends to move away from “banging on tables” to a more collaborative approach in negotiations with government and private-sector employers.   Ogbe plans to work with government agencies, private sector players, and other partners to help pilot and deliver necessary progress for the Nigerian aviation industry as a whole.

    As the industry rides on the optimism of recovery, experts look forward to the establishment of more indigenous carriers as the Nigerian Civil Aviation Authority (NCAA), issues more Air Operators Certificate (AOC), for fledgling carriers. These new entrants are expected to add value to the ecosystem offering capacity and boosting competition.

    Among the carriers expected to commence flight operations in 2026 include : Binani Airlines, Pioneer Airlines, K- Impex Airlines and others that have secured approvals to fly.

    In 2026, the investment space into aviation is expected to be expanded as more State Governments join Enugu, Akwa Ibom , Ogun , Ebonyi , Bayelsa and others to either acquire aircraft for airlines or explore opportunities in the cargo / logistic value chain.

    Speaking on the development, Group Managing Director of Finchglow Holdings, Mr Bankole Bernard disclosed plans of diversification for 2026.

    According to the former president of the National Association of Nigerian Travel Agencies  (NANTA), 2026 will witness more players venturing into cargo airlines and an aviation flying school with foreign partners.

    Bernard said the year 2026 will offer opportunities for players in the aviation and allied sectors to engage State Governments as more airports are being constructed in their domains, projecting that cargo business will gain more traction as players optimise benefits in the value chain.

    To drive this, he said his enlistment as Chairman of Cargo Accounts Settlement System (CASS), offers a window to exploit the gains of cargo business in Nigeria.

     CASS offers recognised settlement procedures, proper billing and seamless reconciliation. He said these functions will provide a transparent flow of funds between airlines and cargo agents, therefore encouraging investment and global confidence. Bernard added that Nigeria’s Cargo Business cannot grow without standards that reflect international expectations.

    CASS limits direct dealings with airlines to IATA-accredited cargo agents. He said this step will push operators to formalise their activities if they wish to remain relevant in the Cargo Business.

    He said several airlines have already begun full integration into the Nigerian CASS platform. He explained that while Ghana has operated CASS successfully for over two years, Nigeria’s progress was delayed by operational issues. His election has, however, renewed confidence and created fresh momentum among stakeholders. He said, “More airlines are showing interest because they see what has happened on the BSP.”

    Bernard noted that Turkish Airlines will join the system in early 2026. He described the carrier as a major freight player that moves significant volumes into Nigeria each day. “By January, Turkish Airlines is coming fully on board. These are major carriers of cargo going into Nigeria daily,” he said.

     He added that participation by such airlines lifts the credibility of the platform and deepens its value for Nigeria’s Cargo Business.

    He linked the role of CASS to the global reach enjoyed by airlines in the BSP. Bernard said BSP allows a passenger ticket to be issued in any part of the world, and CASS will now extend similar benefits to freight.

    He stressed that CASS will force a renewed focus from the Federal Airports Authority of Nigeria. According to him, “FAAN will see the direction of cargo business immediately and they’ll start to pay attention to it.

     He noted that a meeting with the FAAN Managing Director is planned for January or February 2026 to discuss the role of CASS and its value proposition to the Nigerian market.”

    On the regulatory front, industry watchers look forward to enhanced oversight duties by the NCAA, which is already putting measures in place to boost its civil aviation police duties.

    Significantly, experts look forward to intensified overhaul of key units in the NCAA to boost its global image as the authority enhances the discharge of its duties.

    They say the NCAA should step up its sanction of airlines in order to protect the interest of the members of the flying public .

    According to  NCAA’s Director of Public Affairs and Consumer Protection, Mr Michael Achimugu,   seven airlines were sanctioned in 2025 for various violations of passenger rights.

    He  warned of  stricter enforcement and more penalties will follow in 2026 as part of efforts to improve service quality across the aviation ecosystem.

    He also urged air travellers to stop repeatedly patronising airlines that consistently offer poor services and instead explore better alternatives available in the market.

    “Flight delays and cancellations will never end. Not in Nigeria, not on earth. What we can do is bring them down to the barest minimum, but more importantly, enforce the regulations by ensuring that airlines provide the care that passengers are entitled to during a disruption. We will also sanction airlines a lot in 2026. 7 were sanctioned in 2025, but we will do more in 2026,” he said.

    He added that flight delays and cancellations are a global reality and cannot be completely eliminated, but can be reduced to the barest minimum through effective regulation and strict compliance with consumer protection rules.

    “What we can do is enforce regulations to ensure airlines provide the care passengers are entitled to during disruptions. We will also sanction airlines a lot more in 2026,” Achimugu said.

    From the ground handling perspective , operators look forward to the diversification of business for players in the sector in 2026 as they explore investment into courier business, travel and hospitality and other businesses.

    Speaking on the outlook for 2026, Managing Director of Skyways Aviation Handling Company ( SAHCO) Plc, Mrs Adenike Aboderin the company will focus on other revenue streams beyond ground handling to establish other businesses.

    On the indigenous airlines front the year 2026 will be defining as operators will try their hands out on route expansion into regional and intercontinental routes.

    Airlines to watch will include : Air Peace, Ibom Air, United Nigeria Airlines , Overland Airways , NGEagle Airlines, UMZA Airlines, Max Air , Green Africa Airways and ValueJets Airlines.

    Attention , experts say should also beam on Lagos State Government as it wraps up plans to attract investors into the commencement of its airport in the Lekki/Epe corridor; Ogun State Government as flight and other activities intensifies at its airport in Iperu , near Sagamu in the gateway state.

    Experts say, it is unclear whether the Federal Government will activate plans on the establishment of the controversial national carrier – Nigeria Air.

    Industry watchers are optimistic that the sector will achieve headwinds on the conditions attached to the leasing of airplanes by indigenous operators as Nigeria exits the list of blacklisted countries by global aircraft lessors and other entities that facilitate airplanes for airlines.

    This expectation is coming on the heels of the quick wings achieved by the Ministry of Aviation and Aerospace development.

    Nigeria, recently  exited the global aircraft lessor blacklist after years of being considered high-risk, thanks to reforms like adopting the Cape Town Convention and signing IDERA, significantly improving its aviation compliance score and restoring confidence for easier access to dry-leasing, a more cost-effective method for airlines to acquire aircraft.

    The Aviation Working Group (AWG) removed Nigeria from the blacklist allowing its carriers to  secure more favorable lease deals.

    Nigeria implemented a new practice direction allowing lessors to repossess aircraft within five days of default, addressing a major past concern.

    The blacklisting stemmed from past defaults and legal issues that made lessors hesitant to provide aircraft.

     By implementing legal and regulatory reforms, Nigeria has removed these barriers, allowing its aviation sector to grow more sustainably.

  • Digitising economic growth

    Digitising economic growth

    Nigeria’s Information and Communications Technology (ICT) sector hums as a powerhouse of innovation and growth. From mobile networks connecting millions to fintech apps revolutionizing daily transactions, ICT has evolved from a supporting player into the vanguard of economic transformation. This year, sustained policies and private investments are expected to position the sector to boost GDP and transform the economy, LUCAS AJANAKU reports.

    Nigeria’s ICT landscape shows impressive momentum. In fourth quarter 2024, it contributed 17.7per cent to real gross domestic product (GDP), with telecommunications leading the charge through mobile and broadband services. By first quarter 2025, the sector notched a 31.63 per cent year-on-year nominal growth, pushing its GDP share above 10 per cent in both nominal and real terms.

    These figures stem from subscribers’ insatiable appetite for data consumption, broader broadband access, and digital integration across businesses and homes.

    Policymakers and industry leaders have set ambitious yet achievable targets, assuming steady regulatory support.

    An economist and public affairs commentator, Dr. Ayo Teriba, said the country will surpass all the growth projections contained in the budget.

    Teriba, who is the CEO of Economic Associates (EA), said this year will be the reference year of 2006 which saw an accelerated stock market growth and general economic development. According to Teriba, inflation will dip further to single digit during the year, arguing however that policy consistency will be the driver of the growth

    According to projection, the ICT sector is primed to contribute between 20 per cent and 22 per cent of GDP, up from between 17 per cent and 18 per cent in 2024-2025. This leap, driven by infrastructure investments and smartphone penetration, will help diversify beyond oil.

    President, Association of Telecommunications Companies of Nigeria (ATCON), Tony Emoekpere, explained that the sector’s improved numbers reflect greater responsiveness from policymakers.

    He said: “The increase in revenue and contribution to GDP is a testament to the policies that have been put in place and the fact that this government has been responsive to industry needs”.

    Recall that the Nigerian Communications Commission (NCC) had approved a capped 50 per cent tariff adjustment for telecom operators in Nigeria in January 2025, citing rising operational costs (like naira devaluation) and the need for industry sustainability, affecting calls, data, and skort message service (SMS). Though lower than the 100 per cent the telcos had rooted for, the adjustment, the first in over a decade, aims to allow telcos to invest in infrastructure and redefine end user experience in the telecom sector.

    Read Also: 5.36m electricity customers remain without meters– NERC

    NCC CEO/EVC, Dr Aminu Maida, who had made quality of service (QoS) his major preoccupation, said the telcos had made about $1billion investment to expand capacity and buy new equipment that would ultimately lead to improved QoS, subscribers wonder if indeed the cash has been invested because QoS remained a challenge.

    A consumer rights group, Association of Telephone, Cable Tv, and Internet Subscribers of Nigeria (ATCIS-Nigeria), said its members continue to experience network wahala.

    National President of the group, Hon Sina Bilesanmi, said one of the assurances given by the Federal Government before his members acceded to the 50 per cent tariff hike was improvement in QoS, wondering what has happened to the cash. The NCC boss had said subscribers will see changes three months after the tariff hike only for the agency to turn around and say more time, about nine months, will be needed to get things right.

    Subscribers are hoping that things will change for better this year in terms of QoS and value for their money.

    Through effective implementation of the National Digital Economy Policy and Strategy (NDEPS) 2020–2030 which is the primary framework designed to transform the country into a leading global digital economy, broadband penetration will improve.

    Nigeria’s broadband penetration recently crossed 50 per cent in late last year, reaching approximately 50.58per cent, a significant milestone but still short of its 70 per cent target for 2025 under the National Broadband Plan (NBP 2020-2025).

    The year is also expected to witness talent explosion as 1 million tech-trained professionals via programs like the Three Million Technical Talent (3MTT) programme which is the baby of Communications, Innovation and Digital Economy Minister, Bosun Tijani, is expected to help harness the talents of Nigeria’s youthful demographic (median age under 18) for skills in artificial intelligence (AI), cybersecurity, and fintech.

    The Startup ecosystem is expected to witness a boom: $10 billion+ in cumulative VC funding, cementing Nigeria as Africa’s top tech hub with scalable ventures in healthtech, edtech, and logistics.

    Digital Finance Dominance as over 80per cent adult adoption of wallets, real-time payments, and mobile services, easing cash frictions and boosting inclusion.

    Consistent enforcement of data protection by the Nigeria Data Protection Commission (NDPC) under the leadership of Dr Vincent Olatunji, AI strategies, and digital trade rules will spur foreign direct investment (FDI) into the sector and foster long-term innovation.

    These targets aren’t pie-in-the-sky; they’re grounded in current trajectories, from fibre rollouts to 4G/5G expansions.

    Progress however won’t come easy. Infrastructure lags, with rural broadband at just 23per cent despite 45per cent of Nigerians living there. Unreliable power hikes costs for data centers, while skill mismatches hobble employability. Cybersecurity threats and governance gaps loom large, demanding initiatives such as Project BRIDGE and the National AI Strategy.

    A thriving ICT sector will transform beyond tech towers. It promises efficiencies in agriculture, healthcare, education, and energy—lowering costs and scaling services. Nigeria eyes West African digital leadership, exporting talent and services amid rising digital literacy.

    Revenues paint an optimistic picture as the digital economy could top $18.3 billion by 2026, fueled by AI, over 40 Tbps submarine cables, and private investments. The broader ICT market, valued at $13.1 billion in 2024 with a 13.2per cent compound average growth rate (CAGR), targets $35.5 billion by 2032.

    It is however not clear if the 90,000km fibre lines and 7,000 telecom towers promised by the minister has started.

    Last year, the minister had promised the rollout of the N3.3 trillion 90,000 kilometres of fibre lines, 7,000 Telecom Towers infrastructure nationwide in Q4 2025.

     “These foundational reforms, coupled with advancements in AI and the startup ecosystem, have positioned Nigeria as a global leader in the digital economy,” Tijani had said.

    The Minister stressed that the 3MTT programme, launched in October 2023, to create a tech-savvy workforce, has already trained over 117,000 Nigerians in digital skills, surpassing its initial target of 30,000.

    “By last year, we had already moved that to over 117,000. With an additional 35,000 in training, the programme is nearing 10 percent of its three million goal. And in the rest of the time in office, we hope to reach three million,” he said.

    “We are preparing a $2 billion investment to ensure every Nigerian can access affordable, high-quality connectivity regardless of location. Increasing connectivity hubs by just 10 percent could yield a 2.5 percent GDP growth,” he said.

    Tijani celebrated Nigeria’s ranking among the world’s top 60 countries for AI readiness and developing a homegrown large language model (LLM).

    He also highlighted the launch of the AI Collective platform, supported by leading partners including Pierre Omidyar, Google, and Microsoft, to foster collaboration and innovation in artificial intelligence.

    For the first time in the country, the ministry has funded 55 academic researchers to explore technology applications in agriculture, healthcare, and education. In addition, N300 million was invested in 10 startups using AI and blockchain to enhance agricultural productivity.

    On the Nigeria Startup House in San Francisco—an initiative targeting $5 billion in startup funding—Tijani said: “Our goal is to attract $5 billion in investments for Nigerian startups, supported by the Startup Pact and Trade Desk initiatives, which will connect local tech firms to global opportunities and government procurement.”

    He said over 500 government technologists have been trained in AI and Digital Public Infrastructure (DPI), and the groundbreaking Digital Economy Bill has passed its first reading in the National Assembly.

    To bridge rural connectivity gaps, the Minister projected that 7,000 telecom towers would be deployed, targeting 98 percent nationwide coverage, adding that the Federal Executive Council had already approved the project.

    He described the progress on Right-of-Way issues as a game-changer for the country, revealing that 12 states in the federation have adopted zero-rated Right-of-Way policies.

    He projected the sector’s GDP contribution to rise from 16 per cent to 22 per cent, stating: “If a sector can increase its contribution by three to four per cent to the GDP, we’re about to see the economic growth—we’ve not seen it before. Technology allows us to bridge the gap between governments and the people.”

    Tijani said the government was not chasing quick wins, adding: “The results we want to provide for Nigeria are long-lasting reforms that will transform our economy for generations to come.”

  • Driving growth with recapitalisation

    Driving growth with recapitalisation

    With macroeconomic headwinds still blowing, regulatory shakeups underway, and citizens demanding more value for their trust, Omobola Tolu-Kusimo writes on whether 2026 could be the year these industries either break new ground or stay stuck in the cycle of unrealized potential.

    The year 2025 ended with increased premiums, improved regulatory oversight, and renewed investor interest following NAICOM’s enforcement of the Nigerian Insurance Industry Reform Act, 2025 (NIIRA 2025).reforms and recapitalisation efforts.

    However, insurance penetration remains below 1per cent, a stubborn reminder of trust deficits and policy design mismatched with market realities.

    In 2026, the focus is expected to be on Expanding microinsurance and digital distribution to reach the informal sector.

    Focus will also be on how the industry will close claims trust gap through improved payout transparency; Enhancing fire and property insurance compliance, especially in high-risk zones; and Driving collaboration with state governments on compulsory insurance enforcement

    Similarly, with climate-related risks like market fires and floods increasing, insurers will be under pressure to move from risk avoidance to proactive risk management and inclusion.

    Pensions: The Balancing Act Continues

    For the Contributory Pension Scheme (CPS) managed by PenCom, 2025 showed steady growth in assets now crossing N18 trillion and moderate expansion in the Retirement Savings Account (RSA) base. However, concerns linger around benefit adequacy, especially for informal workers and those nearing retirement.

    Read Also: Raising financial services standards with consumer awareness, protection

    In 2026, key expectations include- Strengthening the Micro Pension Plan to deepen coverage; More RSA transfer activity as competition among PFAs grows; Investment diversification into infrastructure and impact sectors; and Enhanced retirement planning education to close literacy gaps.

    Meanwhile, under the Defined Benefit Scheme (DBS) administered by PTAD, continued efforts to clear backlog payments, implement biometric verification, and digitize pension records will define service delivery.

    The Real Question: Inclusion or Isolation?

    Both sectors face a common challenge on how to serve more Nigerians better. With only 19 million Nigerians enrolled in pensions and fewer than 2 million insurance policyholders, the industries are barely scratching the surface of a 230 million-strong population.

    To shift from numbers to impact in 2026, stakeholders must Prioritize user education and financial literacy; Redesign products to fit real needs; and Build trust through service delivery and accountability

    Final Word

    2026 holds promise but delivery is key. Insurance and pension operators must align business interests with national needs, and regulators must be firm yet enabling. Nigerians, especially the youth and informal sector, are watching.

    Can the sectors rise to meet them halfway? Only time and execution will tell.

    Regulator, Operators Projections

    PenCom

    In an interview with journalists in Lagos, the Director General of PenCom, Ms. Omolola Oloworaran said her plan for 2026 would continue to revolve around building trust among retirees and Retirment Saving Account (RSA) holders.

    She further disclosed that improving investments options for Pension Fund Administrators (PFAs) that allows them work towards the parts where returns on investment for retirees and RSAs surpass inflation.

    Most importantly, we want to ensure that the right of retirees and RSAs earn good income at retirement. Generally, this continues to be our frontline plan and we will build reforms around them, she said.

    NAICOM

    The Commissioner for Insurance of NAICOM, Mr. Olusegun Omoseyin said Nigeria’s insurance sector stands at a defining moment.

    He stated that while they have made progress in regulatory reforms and market development, the reality remains that this industry is still undercapitalized and underpenetrated.

    He said: “Insurance penetration hovers below one per cent of Gross Domestic Product (GDP), behind global and even regional averages. As the World Bank reminds us, “Financial resilience is not a luxury; it is a necessity for sustainable development.” Recapitalization is not just a compliance exercise; it is a strategic imperative. But let me emphasize: resilience requires more than capital. The goal is no longer just solvency; it is about building the capacity to withstand shocks, adapt to change, and thrive in uncertainty.

    “Under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and the guidelines issued by the commission, we have set clear expectations by specifying the Minimum Capital Requirements (MCR). We have also constituted an in-house Committee to drive the recapitalization exercise. We issued an MCR Circular followed by comprehensive guidelines for MCR to provide regulatory clarity.

    “We also set very clear compliance timelines which includes 30th September 2025: Submission of recapitalization plans; 10 working days after month-end: Monthly progress reports; and November 2025 – June 2026 for Capital verification.

    Beyond capital, Omosehin reiterated that capital is the floor, not the ceiling.

    He said to achieve resilience, they must Address emerging risks such as climate change, cyber threats, health crises, supply chain disruptions, and political volatility; Develop local data and risk models suited to Nigeria’s realities; Embed ESG and sustainability principles in underwriting and investment; Move from being mere risk transferors to risk managers and mitigators.

    “Capacity building must extend beyond financial capital to human capital, that is, technical skills, leadership, actuarial and innovation mindset. Capacity must also extend to technological capacity such as, catastrophe modelling, insurtech adoption, data analytics, and digital distribution. As the African Insurance Organization noted recently, “The future of African insurance will be digital, data-driven, and customer-centric.”

    Speaking on the game changer for 2026, the commissioner said recapitalization will reshape the industry. It will lead to strategic mergers and acquisitions, creating stronger entities.

    “But collaboration must go further. Reinsurance partnerships should evolve from transactional to strategic. Public-private partnerships can drive inclusive insurance and deepen penetration. Regulators, insurers, reinsurers, and other stakeholder must work together to mobilize capital and expertise. Under the African Continental Free Trade Area (AfCFTA), we must leverage regional platforms for cross-border growth, harmonizing standards and unlocking scale.

    “Our ultimate goal is competitiveness and adaptability, not mere compliance. This requires transparency and trust, especially in claims settlement, alignment of policy, capital, and innovation to support national economic stability, and a shared commitment to transform insurance from a peripheral service to a central pillar of Nigeria’s economic resilience”.

    He encouraged operators that recapitalization is not an end; it is the beginning of a new era.

    “It is the foundation upon which we will build a resilient, innovative, and globally competitive insurance sector. NAICOM stands ready to facilitate this journey through guidance, engagement, and collaboration. We urge every stakeholder here to embrace this moment, not as a regulatory burden, but as a strategic opportunity to redefine our industry’s future.

    “Together, let us move beyond solvency to resilience, beyond compliance to competitiveness, and beyond borders to continental leadership, and above all, beyond MCR to RBC”, he stressed.

    Operators

    The Chairman, Nigerian Insurers Association (NIA), Kunle Ahmed in his new year message to member companies of the association pledged to establish a recapitalisation help desk to assist them during the transition.

    He appreciated their commitment to client’s satisfaction, unwavering support, resilience, and collaborative spirit, which together defined the remarkable progress of the association and the Nigerian insurance industry in 2025.

    He disclosed that the past year was transformative for the NIA, marked by initiatives that deepened the market, boosted public confidence, and strengthened stakeholder engagement.

    He said: “In 2025, the NIIRA Act was signed into law, creating a stronger framework for insurance penetration, governance, and sustainable growth.

    “As 2026 begins, the priority is its effective implementation through collaboration among companies, regulators, and stakeholders. The NIA has pledged continued support via advocacy, guidance, capacity-building, and plans to establish a recapitalisation help desk to assist members during the transition.

    “With cooperation, transparency, and shared responsibility, I am confident we will consolidate the gains of 2025 and usher in a new era of growth and public trust”, he added.

  • Unmanned fuel stations

    Unmanned fuel stations

    • Those to be negatively impacted have to start planning for the eventuality

    Last week, a leading player in the fuel retail sector, AA Rano, took a major step in digital transformation with the unveiling of its first fully automated and unmanned fuel stations. The initiative, said to be part of a strategic partnership with an indigenous technology firm, Petrosoft Limited, which specialises in downstream oil and gas management systems, will see the Petrosoft deploy its SmartPump technology across AA Rano’s 200 retail outlets nationwide, including border communities with Niger, Chad, Benin and Cameroon.

    Understandably, the partners see the coming of the unmanned stations as setting a new standard for reliability, speed, and customer convenience in the country. Chief executive officer of Petrosoft Limited, Joshua Denila, would say of the digitalised fuel dispensing and payment project as demonstrating ‘how home-grown technology can overcome the myriad challenges in Nigeria’s retail fuel market’.

    He further says of the technology, as “integrating retail automation, corporate fuel management, and inventory monitoring. The system enables self-service refuelling, automatic vehicle identification for corporate fleets, real-time dispenser control, advanced tank gauging, and cloud-based monitoring to track fuel levels, detect leaks, and prevent theft.

    Our fuel dispensing and payment systems are developed locally and built to international standards”, he said.

    We must admit that the development, a reflection of how much service providers value the convenience that evolving technologies bring, has become somewhat inevitable. After all, Nigeria has of recent witnessed unprecedented assertiveness in the area of payment solutions with the trail blazing initiatives of the likes of Andela, Interswitch, Flutterwave, OPay, and Moniepoint. It seems therefore a matter of time that such innovative solutions would emerge in a leading sector like the fuel retail chain. That this Nigerian company is not only leading the charge but has proven again, that such cutting edge technology could be sourced locally ought to provide immeasurable comfort.

    Read Also: 5.36m electricity customers remain without meters– NERC

    Yet, as inevitable as the development has become, we must also admit the growing concerns about the potential loss of jobs at a time of high unemployment. Already, a group – Concerned Petrol Station Workers led by a Kaduna-based rights campaigner, Ibrahim Zango, has voiced strong opposition to the plan. Insisting that the initiative would strip many young Nigerians employed as fuel attendants of their source of income, he considers the move ill-timed, considering the nation’s ongoing economic difficulties and growing unemployment rate.

    “At a time when Nigeria is already grappling with mass unemployment, rising cost of living and growing insecurity, deploying job-eliminating technology without safeguards is dangerous,” Zango said.

    Finally, he averred: “Sending us out of the jobs some of us have been doing for decades without robust plans will only multiply our crisis as a country”.

    We acknowledge that such fears, succinctly captured, are not entirely groundless, although they seem exaggerated at this point. In a country with some 22,681 registered filling stations as at 2025, it is hard to see how Rano’s phased introduction of 200 automated filling stations, which represents less than one percent, would precipitate instability.

    Of course, the expectation is for more players in the retail sector to transition to this new reality. But then, there is, as yet, no suggestion of industry-wide adoption in the immediate future to warrant the kind of fears being expressed. In any case, we are not aware of any laws or regulations that forbid any investor from adopting such convenient, cost-cutting, technology-driven solutions it deems fit to enrich its consumer experience. Our plea is for those that might be affected to embrace its inevitability while taking concrete steps to prepare well ahead for the moment. It is an inescapable change that technology brings.  

  • A welcome threat

    A welcome threat

    MDAs that failed to render financial accounts timeously deserve to be penalised

    Allocation of funds to ministries, departments and agencies (MDAs) that failed to render their statement of accounts as at the close of business on December 31, last year, is to be suspended indefinitely. In addition, their director/head of accounts and administration are also to face administrative consequences.

    The warning came via a circular signed by the Accountant-General of the Federation (AG-F), Dr. Shamseldeen Ogunjimi. The circular, titled: “Guidelines of Financial Activities for End of the Year 2025”, dated December 22, 2025, states: “Any MDA that fails to prepare and render its separate (stand-alone) annual financial statements will have its release of funds suspended indefinitely, while a query shall be issued to the director/head of accounts and administration.”

    By the circular, all MDAs must ensure that all revenues due to both the Federation Account and the Consolidated Revenue Fund/TSA Sub-Recurrent Account are fully collected and properly accounted for before December 31, 2025.

    Moreover, MDAs permitted to retain 50 per cent of their gross internally generated revenue (IGR) and remit the remaining 50 per cent to the TSA Sub-Recurrent Account are to adhere strictly to the provisions of the applicable finance circular of December 28, 2023.

    According to the accountant-general, all the MDAs must “ensure due diligence in the collection, utilisation, and remittance of their revenue,” in line with the circular referenced FMF/CME/OTHERS/IGR/CFR/21/2023.

    There are several other provisions in the circular which the MDAs are expected to comply with, which all bother on the need for accountability and transparency in the handling of public funds.

    Truth is, there are too many loopholes that unscrupulous public officials exploit to steal public funds and one of these is to delay rendering of their financial statements. We therefore see nothing wrong in trying to checkmate such officials.

    As a matter of fact, almost all of the expectations from the MDAs should have been routine; that is there ought not be any reminder or warning from the government to them to do what we consider to be the needful.

    Read Also: Raising financial services standards with consumer awareness, protection

    For instance, we do not think it is necessary to remind any government agency to remit unspent funds in any year to the treasury. This should be the norm, but MDAs have not been consistent in remitting such funds. As a matter of fact, a time there was when some of the government agencies would award all manner of frivolous End-of-Year contracts for items that they did not need, just so they could exhaust their budgetary provisions, to justify a raise in their following year’s budget.

    We commend the AG-F for the reminder to the MDAs to do the needful, and for reminding them of the consequences of not doing it.

    But, beyond that is the need to enforce extant rules against recalcitrant agencies as threatened in the AG-F ‘s circular. This is important because one of our main problems as a country is the lack of will to enforce sanctions; not necessarily the absence of same. This is why corruption has literally become a malignant tumour in the country.

    The truth of the matter is that there are too many leakages in government finances in the country. This explains the mind-boggling frauds in billions of naira that some public officials had siphoned off; some of them already convicted, while others have their cases pending in courts. Something must be wrong with the accounting processes that make such mind-boggling thefts possible.

    At the beginning of the new political dispensation in 1999, it was discovered that many federal public agencies did not render their financial returns for years!

    We urge the Auditor-General of the Federation too to do his bit so that frauds can be prevented, at least to the barest minimum before they occur rather than acting reactively.

    It is by promptly dealing with rogue public officials that government can demonstrate that it has zero-tolerance for corruption.

  • Charcoal wealth, environmental poverty

    Charcoal wealth, environmental poverty

    • By Aliyu Abubakar Bello

    Sir: Across rural Nigeria today, the charcoal business is booming. It has become a livelihood embraced by the young and the old, men and women alike. It knows no gender, no age bracket, and no boundary. For many families, charcoal production has transformed into a reliable source of income in the face of limited economic opportunities. While the dignity of earning an honest living deserves recognition, the ecological cost of this thriving trade is alarmingly catastrophic.

    Trees are being felled indiscriminately and in record numbers, often without replacement, regulation, or long-term planning. Forests that once stood as guardians of life are disappearing silently, reduced to smoke and ash. Worse still, charcoal is no longer consumed locally alone; it is now being exported in large quantities, accelerating deforestation at a pace far beyond natural recovery. What appears to be short-term economic gain is, in reality, a long-term environmental disaster unfolding before our very eyes.

    Trees are not mere plants; they are life-support systems for humanity. They provide shade and shelter, serve as sources of traditional and modern medicine, and supply raw materials for furniture, construction, paper, and countless industrial uses. They combat climate change by absorbing carbon dioxide and releasing oxygen, purify the air we breathe, prevent soil erosion, restore soil fertility, protect watersheds, regulate rainfall patterns, and serve as a formidable barrier against desertification.

    Above all, trees sustain the delicate balance of life on earth.

    It was therefore with immense joy and renewed hope that I received the announcement by the governor of Niger State, Umar Bago, on the launch of a massive tree-planting initiative. This bold step stands as a shining example of visionary leadership—one that recognizes that environmental sustainability is not optional but existential.

    Read Also: 5.36m electricity customers remain without meters– NERC

    However, isolated efforts, no matter how commendable, are not enough. The federal government, state governments, and local governments must collaborate urgently and deliberately on a nationwide tree-planting and forest regeneration programme. This project should be institutionalized, well-funded, and continuously supervised at federal and state levels, with local governments strategically tasked with grassroots implementation and monitoring.

    Economically important and fast-growing tree species—those valuable for timber, energy, medicine, fruit production, and environmental protection—must be given top priority. If properly managed, forestry can evolve into a renewable economic powerhouse capable of creating millions of jobs, generating sustainable revenue, ensuring energy security, and, in the nearest future, even rivalling oil as a strategic national resource.

    Nigeria stands at a critical crossroads. We can continue to burn our forests for charcoal and export our ecological future, or we can invest wisely in trees and export sustainability, prosperity, and life itself. The choice we make today will define the air our children breathe tomorrow.

    •Aliyu Abubakar Bello

    Dorayi, Kano.

  • Elders and illicit drugs

    Elders and illicit drugs

    • By Tosin Damola

    Sir: In many African societies, elders are traditionally regarded as custodians of culture, ethics, and good conduct. A woman aged 60 and above is often seen as a mother, grandmother, adviser, and moral compass to younger ones. When someone at that age is linked to criminal activity, it sends a deeply unsettling message: that age and experience no longer guarantee moral uprightness. This represents a troubling breakdown of long-held societal expectations and responsibilities.

    It is particularly disheartening to witness the involvement of elderly persons—both men and women—in the distribution of illicit substances. The situation becomes even more alarming when those who should be warning the young against crime are instead being arrested for the very acts they ought to condemn. Such developments suggest that greed and moral compromise are increasingly overtaking conscience.

    The recent arrest of a 65-year-old woman popularly known as “Mama Kerosine” by NDLEA in Ibadan, Oyo State, for alleged involvement in large-scale drug trafficking is a disturbing example. Beyond the crime itself, the incident raises serious questions about the erosion of values that once guided individuals, families, and communities. At an age when wisdom, restraint, and moral leadership are expected, she is instead accused of contributing to a menace that destroys lives and futures.

    This reality reinforces a painful truth: criminality cuts across all age brackets. When elders are implicated in crime, it weakens the moral foundation upon which society is built. Young people who observe such behaviour may begin to lose faith in honesty, dignity, and the value of hard work, believing that success can be achieved through any means.

    Reports of arrests carried out by the National Drug Law Enforcement Agency in recent times further underscore this concern, with accounts of men and women in their 70s and even 80s apprehended for drug-related offences across different states. These cases confirm that old age neither excludes individuals from involvement in crime nor shields them from the consequences of the law.

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    While economic hardship and social pressure are often cited as reasons for criminal behaviour, such explanations cannot justify actions that endanger lives. Many Nigerians face similar challenges yet choose lawful paths of survival. When elders abandon morality under the excuse of hardship, they rob younger generations of the moral courage to endure difficulties with integrity.

    Although the efforts of law enforcement agencies in exposing and dismantling drug networks deserve recognition, arrests alone cannot cure moral decay. The deeper roots lie in weakened family values, eroded community structures, and declining accountability among elders. Moral decay flourishes where wrongdoing is excused, normalized, or ignored.

    Parents, guardians, religious leaders, and traditional authorities must rise to the challenge of restoring discipline and values. Elders, in particular, must remember that leadership is not defined by age or status alone, but by example. When moral failure occurs at the top, its consequences ripple through generations.

    The arrest of the 65-year-old woman is a sobering reminder that moral decline knows no age limit. It should serve as a wake-up call for collective reflection and action. Society must recommit to integrity, contentment, and social responsibility, reinforcing moral education at home, in schools, and within communities.

    A society that loses its moral compass ultimately risks losing its future.

    •Tosin Damola,

    Lokoja, Kogi State.