Category: Business

  • Technical centre for electro-technology takes off

    Technical centre for electro-technology takes off

    Local meter manufacturing at the weekend received a boost with the foundation laying of the Euro 3 million Momas Technical Vocational and Educational Training (TVET) Centre for Electro-Technology in Ogun State.  The project is funded through the African Union, in partnership with the African Union Development Agency (AUDA-NEPAD) and the Skills Initiative for Africa (SIFA) programme. MOMAS secured the grant under SIFA’s Funding Window 1, which supports large-scale skills development projects.

    Speaking at the groundbreaking ceremony, the Senior Special Assistant to the President on Industrial Training and Development, Adamson Ayinde, praised the project as a model of private-sector leadership in addressing Nigeria’s manpower gaps—particularly within the power sector.

     “This project directly responds to critical manpower shortages in smart electricity metering, electrical wiring and maintenance, renewable energy technologies and electro-technology safety practices,” Ayinde said.

    He commended MOMAS for what he described as “patriotism, foresight and commitment to national development,” noting its management’s willingness to exceed the required 10 per cent counterpart funding contribution.

    Ayinde added that the initiative aligns with the Federal Government’s goal of building a technologically competent workforce and reducing reliance on foreign artisans.

    He described the centre as “a promise to our youths,” adding that it represents opportunity, empowerment and hope for young Nigerians seeking employment or entrepreneurship.

     “Today’s ceremony marks a major milestone in Nigeria’s journey towards a skilled and globally competitive workforce,” he stated.

    Also speaking, AUDA-NEPAD representative, Gemechu Kusa, said the centre symbolises the birth of a transformative training hub where young Africans can acquire life-changing skills.

     “This centre is a bold step in our shared mission to empower Africa’s youth. Technical and vocational education is not a second choice, but a first-class pathway to opportunity, dignity and sustainable livelihoods,” Kusa said.

    He noted that the centre’s focus on electro-technology and renewable energy, particularly solar photovoltaic systems, positions it to address both youth unemployment and Nigeria’s energy challenges.

    According to him, the institution will develop cutting-edge curricula aligned with national standards, provide scholarships and ensure inclusivity while supporting the Federal Government’s Renewed Hope Agenda.

    The President, Nigerian Society of Engineers (NSE), Margaret Oguntala, applauded MOMAS for its vision, describing the initiative as timely.

     “The nation is in desperate need of skilled manpower to drive infrastructure development, industrial growth and technological advancement,” she said.

    She called for strong collaboration from the Lagos State Government, the Federal Government and stakeholders in the engineering and energy sectors to maximize the centre’s impact.

     “The NSE fully supports the Momas Group, recognising the immense value this project will bring to the Nigerian economy,” Oguntala added.

    In his remarks, the Chairman of MOMAS Group, Kola Balogun, an engineer, said the centre aims to build on past efforts to equip young people with practical skills that can lift them out of poverty while strengthening the nation’s capacity.

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    He revealed that support from NEPAD and the German government would enable the facility to procure advanced equipment and expand training programmes, potentially creating pathways for skilled personnel to work in Europe and beyond.

    Balogun stressed that the centre would play a critical role in advancing Nigeria’s renewable energy goals.

     “The centre will provide the needed skills for installing solar panels, solar batteries and energy storage systems, thereby complementing the significant investments already made by government in renewable energy,” he said.

    He added that the building construction is expected to be completed within a year, with NEPAD directly funding the contractor.

    The goal is to establish an internationally recognised institution capable of training top-tier engineers and technicians.

    Group Managing Director of MOMAS, Hammed Abiodun, described the day as a landmark moment for the organisation, which he said has consistently invested in youth development.

     “This recognition by the German government is a testament to our long-standing commitment to adding value to society, especially the youth,” he said.

    Abiodun emphasised that the future lies in skill acquisition, citing global trends and examples from countries such as China.

     “Our goal is to harness Nigeria’s large youth population by training and reshaping them to contribute meaningfully to national development,” he added.

  • Air Peace loses $15m over aircraft withdrawal

    Air Peace loses $15m over aircraft withdrawal

    Air Peace has cried foul over the unjustified withdrawal of three aircraft it wet leased from a foreign company: Smartlynx, which has caused severe disruptions in its flight operations occasioning delays and cancellations.

    Air Peace entered a wet lease agreement with SmartLynx because 13 of its aircraft are currently undergoing scheduled maintenance abroad.

    According to Air Peace, the withdrawal of the four aircraft without prior notice amounts to a clear violation of industry standards.

    Speaking at a briefing in Lagos, Air Peace, Chief Commercial Officer, Mr Nowel Ngala said the carrier has lost over $ 15 million as damages to the contractual transactions.

    Ngala said over $ 5 million of its funds including one million dollars had been collected upfront by SmartLynx from Air Peace, fully aware that the right owner of the aircraft would be withdrawing them because they have been in default of payment to the said owners.

    The Air Peace said the four aircraft had already been rostered for scheduled flights as the sudden removal has created significant gaps in its operations.

    Ngala said :” Over the past week, Air Peace has experienced several operational disruptions, resulting in flight delays and cancellations. We understand the inconvenience this has caused our valued customers, and we want to address these issues with full transparency.

    ‘We consider this action by smartlynx to be serious breach of contract, fraudulent, and a premeditated scheme that as inflicted financial loss and reputational damage not just to Air peace but indirectly to Nigerian traveling public, whom we serve with pride. Despite SmartLynx’s actions, Air Peace has released three of the aircraft in question to their rightful owners in good faith. One more aircraft remains, and all we are requesting for is a refund of our funds.”

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    Ngala said Air Peace had suffered similar fate in the hands of another lessor : SYPHAX Airlines.

    He said :” This is not the first time Air Peace has been placed in a difficult situation by a fraudulent lessor.

    “SYPHAX Airlines of Tunisia vanished with over 2 million dollars from Air Peace and never returned-claiming they were taking their aircraft for maintenance. The aircraft was never returned, and the funds remain unaccounted for till date as the airline went into bankruptcy.

    “These actions, unfortunately, reflect the challenges Nigerian carriers often face in international leasing arrangements, we cannot allow that to happen again.”

    Despite these setbacks, Ngala said Air Peace has initiated efforts to bring back to the country some of its aircraft that has completed maintenance and are returning to service.

    He said :” Two aircraft have already arrived. Starting next week, we expect to resume full operations across all our routes as more of our aircraft return. We regret the difficulties our passengers have experienced, and we appreciate their patience and understanding throughout this period. Air Peace remains firmly committed to providing safe, reliable, and world-class flight services. We assure the Nigerian public that we are taking every necessary step to prevent such disruptions in the future and to: hold all defaulting partners accountable.”

    Ngala spoke of plans to re- protect its passengers with partner carriers.

    He said :” Our London flights are not affected. We are reaching out to passengers to update them on the status of our operations.”

  • MTN Nigeria Foundation invests N32.23b in projects

    MTN Nigeria Foundation invests N32.23b in projects

    MTN Nigeria has solidified its position as a leading corporate social investor, committing and dedicating over N32.23 Billion to national priorities through its Foundation. This massive investment is strategically deployed across key sectors, primarily youth empowerment, digital inclusion, and national development, reflecting the company’s core strategy of creating shared value.
    The investment funds critical initiatives like the MTN Skills Academy and the provision of STEM scholarships. The impact is personal and profound.
    Sofiya Mustapha, a visually impaired student, shared that the MTN scholarship enabled her to learn “English… data programming, and attended programming courses”. Akas Ngozi, another beneficiary, expressed gratitude for the Foundation, “believing in our potential and providing a platform to pursue our dreams.”.

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    The Foundation’s efforts are actively integrated with federal programmes. MTN continues to support the Federal Ministry of Communications, Innovation & Digital Economy’s 3 Million Technical Talent (3MTT) Programme initiative, directly aligning with the company’s vision of driving inclusive growth.

    In addition to its Foundation work, MTN is contributing significantly to infrastructure. The rehabilitation of the Enugu-Onitsha Expressway under the RITC scheme is 50 per cent complete, demonstrating a comprehensive commitment to supporting the nation’s growth priorities. The company’s ability to sustain this large-scale social investment is underpinned by its profitability, evidenced by the N750.2 billion PAT, and its overall fiscal responsibility, having paid over N6.9 Trillion in taxes.

  • Inflation eases further on declining food prices

    Inflation eases further on declining food prices

    The average volume of goods and services for a unit of naira continued to improve as efficient food supply and relative stability in the foreign exchange (forex) market further deflated inflationary pressure.

    Ahead of the release of the Consumer Price Index (CPI) Report today by the National Bureau of Statistics (NBS), independent consumer surveys and econometric models surveyed yesterday were unanimous that inflation rate dropped for the seventh consecutive time.

    Consumer surveys and economic intelligence reports surveyed by The Nation showed that headline inflation rate dropped by more than 100 basis points to around 16.35 per cent in October, as against 18.02 per cent recorded in September.

    Nigeria has seen steady disinflation since April 2025, with a combination of improved harvest, stable forex, improving security and stable logistics driving down costs of goods and services.

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    The continuing decline in inflationary pressure also raised prospects of further cut in benchmark interest rate by the Central Bank of Nigeria (CBN). The Monetary Policy Committee (MPC) of the apex bank had in September signaled a reflective monetary easing, cutting the Monetary Policy Rate (MPR) by 50 basis points from 27.50 per cent to 27.00 per cent. It was the first rate cut in five years, since September 2020.

    The naira appreciated by 0.5 per cent to close weekend at N1,435.00 per dollar. Nigeria’s gross forex reserves increased for the 17th consecutive week, rising by $187.11 million to close weekend at $43.54 billion.

    “We maintain a positive outlook on the naira, supported by expectations of sustained forex) liquidity. On the domestic front, rising non-oil exports and improving market confidence should underpin inflows, while externally, healthy forex reserves, a positive current account position, and a firmer global monetary easing are expected to reinforce foreign investor sentiment and stimulate additional forex market inflows,” Cordros Capital Group stated..

    Coronation Group predicted that headline inflation rate could fall to 16.29 per cent in October, citing bumper harvest from current harvest season.   

    Analysts at SCM Capital said disinflation trend reflected gains from economic reforms, foreign exchange (forex) rate stability and seasonal food supply dynamics.

    “Inflation is projected to decline further in October 2025, supported by sustained forex stability, moderating input costs, and improved domestic supply conditions. The harvest season should further ease food prices, extending the disinflation trend.

    “With inflation easing for six consecutive months, the Central Bank of Nigeria (CBN)’s Monetary Policy Committee (MPC) may consider another rate cut to stimulate growth. Overall, price pressures are expected to remain subdued, sustaining the economy’s momentum”, SCM Capital stated.

    Analysts at CardinalStone noted that the “moderating inflation bodes well for Nigeria’s currency valuation”.

    According to analysts, the ongoing disinflationary trends bode well for currency valuation with the combination of a sustained current account surplus and a steady build-up in forex reserves expected to underpin further naira appreciation.

    CardinalStone projected that naira would close the year within the range of N1,400 and N1,450 per dollar.

    “The softer inflation outlook reinforces the case for additional monetary easing by the CBN at its November policy meeting. We expect a 100 basis points reduction in Monetary Policy Rate (MPR) to 26.0 per cent.

    “Lower inflation and an expected policy rate cut are likely to drive further yield compression across the naira credit market. While the curve may remain inverted, we expect a sharper adjustment at the short end of the curve.”

  • ‘How to optimise cocoa’s productivity’

    ‘How to optimise cocoa’s productivity’

    • New cocoa board must avoid pitfalls of the old

    With the ongoing consideration of an Executive Bill on the establishment of National Cocoa Management Board (NCMB), experts at the weekend said the restoration of the  struggling cocoa industry could only be achieved if government backs it with serious investment and disciplined execution.

    They said memories of the collapse of the former cocoa marketing board—marred by bureaucracy, corruption, delayed payments and arbitrary price-fixing—have continued to cast a long and troubling shadow.

    Stakeholders cautioned the government to avoid recreating a cumbersome bureaucracy that could choke private-sector creativity and undermine farmer competitiveness.

    Development Agenda for Western Nigeria (DAWN) Commission welcomed the Federal Government’s proposal, describing the NCMB as a “positive development” that aligns with its long-standing recommendations for restructuring the Southwest’s food system.

    According to its Director-General, Dr. Seye Oyeleye, the absence of a structured market system has exposed farmers to severe risks.

    “Southwest farmers face severe challenges: price volatility, limited market access and exploitation by middlemen. Middlemen dominate value chains, creating significant price disparities. The historical success of commodity boards in organising agricultural markets and protecting farmer interests provides a strong foundation for their revival,” Oyeleye said.

    He argued that the NCMB could restore institutional coordination, strengthen quality standards and facilitate better market integration, positioning Nigeria to regain its competitiveness in the premium cocoa market.

    To ensure the institution does not repeat the failures of its predecessors, he outlined key governance and operational reforms. Oyeleye insisted that the board must be independent, with strong private sector and farmer representation, while being protected from political interference. He stressed the need for technical experts in cocoa agronomy, processing and international trade.

    Oyeleye urged the NCMB to focus on establishing grading standards, setting transparent pricing mechanisms and linking cooperatives directly to international buyers.

    A central plank of DAWN’s recommendations involves prioritising international certification and compliance. He emphasised the need to help farmers meet the European Union Deforestation Regulation (EUDR) requirements and obtain sustainability certifications such as Rainforest Alliance, Fair Trade and organic labels, which attract premium prices. He also called for the implementation of end-to-end digital traceability systems to verify product origin and ensure compliance with global buyers’ demands.

    The commission warned that the proposed board must differ fundamentally from previous structures. “We must not create a monopoly purchasing system that breeds inefficiency but rather focus on regulation, standards and farmer support.The board should be a catalyst for transformation, not a bureaucratic burden. Success requires genuine commitment to transparency, farmer-centered design and learning from historical failures,” Oyeleye said.

    Director- General , Oyo State Agribusiness Development Agency (OYSADA), Dr. Debo Akande, urged the Federal Government to decentralise the NCMB, keeping its mandate focused on regulation and research rather than trade. He warned that centralisation could repeat past mistakes, just as it reportedly contributed to the failure of Indonesia’s cocoa management board.

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    “More than often we don’t learn from history. And we repeat the same situation without even looking at the global context in the days that we are,” Akande noted. He argued that agriculture should not remain on the exclusive legislative list and suggested that cocoa management may be better handled at regional or state levels. “Which part of the country is producing cocoa? Can we rather look at a regional cocoa management body?” he asked, proposing that oversight fall under regional development commissions.

    Akande criticised the  culture of overcentralisation. “We centralise everything too much. And that is one of the problems that have given our agricultural sector problem today. Let every region focus on their area of competitive and comparative advantage,” he said. He warned that a national board could be politicised in ways that disregard the geography of cocoa production. “You don’t want somebody sitting in Zamfara tomorrow to say this has become a political position… when nothing in terms of cocoa is being done in the place,” he argued.

    To highlight the importance of production support, Akande pointed to Oyo State’s initiative to produce over one million cocoa trees within the next three to four years, in partnership with International Insttutute for Tropical Agriculture (IITA) and the Cocoa Research Institute of Nigeria (CRIN). He also disclosed that discussions with Belgian chocolate manufacturers were underway to deepen local sourcing and expand first-layer processing in Nigeria.

    Chairman, Board of Trustees , Cocoa Association of Nigeria,(CAN) Dr. Victor Iyama,  warned that reintroducing a centralised board risks reviving the corruption that once crippled the industry. Drawing from decades of experience, he argued that Nigeria’s current liberalised cocoa market is more beneficial to farmers.

    “Our farmers are earning the best prices ever. It’s free enterprise, free exit, free entry,” he said. Iyama recalled the disastrous consequences of the former commodity boards. “Why were the boards scrapped in the first instance? Because of serious corruption,” he stressed, noting that cocoa production plummeted from about 400,000 tonnes to 86,000 tonnes. He said farmers were so frustrated they began cutting down cocoa trees, a fate that befell coffee as well.

    Iyama argued that the push for a new board is “misplaced advice,” insisting that government must strictly limit itself to regulation. “They must not be involved in buying and selling of agricultural commodities,” he said. Instead, he proposed an “agri-commodity management committee” covering all cash crops, noting that Nigeria has “about 18 agricultural commodities that can bring in good foreign exchange.”

    He criticised past board administrators, alleging that they “were buying all sorts of cars, building all sorts of houses at the expense of the farmers.” He urged government to consult “those who know the nitty-gritty” of past failures to avoid repeating them.

    National President, Cocoa Association of Nigeria (CAN), Mr. Mufutau Abolarinwa,  called for a public hearing on the NCMB bill. He revisited the history of the 1987 dissolution of the cocoa marketing board, describing corruption and farmer frustration as the main causes. “When the farmers started cutting down the cocoa trees… that’s one of the reasons why the military government then scrapped the entire marketing board,” he noted.

    Abolarinwa clarified that the new proposal removes marketing entirely from the board’s functions, focusing instead on technical oversight and ensuring compliance with international standards. He insisted that the board must remain free of politicisation. “Government should remove politics out of it. They should call the people actually involved in this trade to ensure that they do the right thing,” he said.

    He warned that government funding would create opportunities for corruption. “As long as government starts introducing giving money, giving allocation, the team will not get the result we are expecting to get,” he said, advocating that organisations represented on the board should finance their participation themselves. He also stressed the importance of funding CRIN, distributing hybrid seedlings and setting production targets for all cocoa-producing states, noting Nigeria’s potential to drastically increase production.

    Agricultural expert, Prof. Tunji Arokoyo also questioned whether the sector  is better positioned now to manage a cocoa board effectively. “What killed it? Are we better now than then or even worse?” he asked, emphasising that the board must protect farmers’ interests, ensure stable pricing and guarantee timely access to quality inputs.

    Prof. Damian Agom of Akwa Ibom State University said the NCMB could significantly improve the sector if it focuses on traceability, extension services, research, market information and improved access to these services for farmers. He cautioned, however, that “the management board should not be involved in product marketing and price fixing,” arguing that access to international price information is crucial.

    Director of Research Outreach CRIN, Dr. Samuel Orisajo,  described the NCMB bill as a “highly commendable and necessary step” to restore Nigeria’s standing in the global cocoa market. He highlighted the vacuum created when the former cocoa board was scrapped in 1986 without transferring responsibilities to any successor institutions. This, he said, created “uncoordinated and untoward developments” that have damaged cocoa quality and caused production to “nose-dive.”

    Orisajo recommended that the NCMB focus on regulation, coordination and strengthening cooperatives rather than fixing prices. He urged policies to promote domestic processing and value addition, arguing that Nigeria must reduce dependence on raw bean exports. He also called for expanding cocoa plantations, rehabilitating old farms and providing credit to help farmers meet international sustainability standards.

    Assistant Director at CRIN, Dr. Kayode Oluyole , expressed strong support for the board, arguing that it would improve quality and stabilise pricing. He emphasised that lapses in fermentation, drying and quality control have significantly undermined Nigeria’s cocoa reputation. “Some farmers may not even ferment for a single day before drying,” he lamented, noting that such practices destroy flavour and reduce market value. He recalled that former marketing boards conducted rigorous quality checks, which no longer exist.

    Oluyole argued that the NCMB would correct these deficiencies and address challenges related to input supply, pricing disparities and traceability. He pointed to Ghana’s cocoa board as an example of strong regulatory oversight. “My conclusion now is that it is advisable; I strongly recommend that the board is put in place,” he said.

    The proposed National Cocoa Management Board has therefore ignited a fierce national debate, balancing renewed optimism for a coordinated cocoa revival against deep-seated fears of repeating historical mistakes. While supporters view the NCMB as the institutional backbone needed to revive Nigeria’s declining global share—now down to just six percent—critics warn that only transparency, decentralisation and strict limits on government intervention will prevent another era of waste, corruption and stagnation.

    President Bola Tinubu’s administration approved the board in April 2025, with a mandate to coordinate production, improve quality, expand processing capacity, foster regional cooperation and support climate-smart agriculture. Stakeholders agree that Nigeria must urgently align with global regulations such as the EUDR, but they remain sharply divided on how the NCMB should be structured to deliver on these ambitions.

  • Global carriers lose $60b annually to flight infractions

    Global carriers lose $60b annually to flight infractions

    Conflict arising from flight infractions including the activities of unruly passengers, poor airport infrastructure, delays and cancellations as well overlapping mandates of aeronautical agencies is causing global airlines, including carriers on Nigeria  to  lose an estimated $60 billion annually.

    Unruly passengers conduct and other infractions, which could trigger flight delay according to the  International Air Transport Association (IATA) , alone cost the industry approximately $30 billion annually.

    To mitigate the impact of such development on air travel, aeronautical agencies are scaling up measures by harmonising safety protocols and procedures for processing passengers, so as not to erode the confidence of air travel.

    Investigations by The Nation reveal that players in the ecosystem are ramping up efforts to reduce possible cause of conflict in the processes leading to organizing a flight.

    In Nigeria, the Federal Airports Authority of Nigeria (FAAN), gathered industry players to examine the impact of conflict in achieving safer air travel.

    Speaking on the development, former General Manager , Public Affairs, Federal Airports Authority of Nigeria (FAAN), Yakubu Dati called on regulators in the aviation sector to integrate conflict management frameworks into their safety oversight duties.

    Besides, he said training institutions should embed human relations and

     organisational psychology into aviation curricula.

    He also urged airlines to see investment in human factors and communication training as essential, not optional strategies to improve the overall business.

    According to Dati, in an era marked by increasing operational complexity, workforce diversity, and passenger expectations, the ability to navigate conflict by industry players will define the next frontier of aviation safety.

    Speaking further , Dati said effective management of conflicts could bring about reduced safety incidents and near misses as communication and coordination efforts get some improvement.

    He said effective management of conflict could also bring about enhanced crew morale and psychological well-being as well as better decision-making under pressure.

    Dati said : “Stronger organisational safety culture, characterised by openness, accountability and continuous improvement is essential for the ecosystem.

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    “ In essence, conflict resolution and aviation safety are two sides of the same coin; one cannot flourish without the other.”

     To build safer skies, Dati said : “ We must strengthen our institutional capacity to manage conflicts at all levels. This involves Promoting open communication. Encourage a culture where safety concerns can be raised without fear of retribution. Transparency and dialogue build trust.

    “ Aviation personnel, whether pilots, engineers, or managers, should receive training in negotiation, mediation, and emotional intelligence. Leadership by example: Safety leadership requires humility, empathy, and fairness. Leaders must model calmness in conflict situations and guide their teams toward solutions rather than blame.

    He said : “ Aviation, by its very nature, is a complex system that relies on precision, coordination, and human cooperation. Yet, beneath the technological sophistication of our aircraft and the rigour of our safety standards lies one fundamental truth: conflict is inevitable where human interaction exists. What truly matters is not the presence of conflict, but how we manage and navigate it to enhance safety, efficiency, and trust within the aviation ecosystem.

    Giving further insight on the matter , Dati said : “In Africa, and particularly in Nigeria, challenges such as industrial strikes, inter-agency rivalry, resource mismanagement, and infrastructural deficits further highlight the importance of conflict management strategies in promoting aviation safety and sustainability.

    “The aviation industry in Nigeria has experienced a significant increase in incidents involving unruly passengers over the past decade, posing serious challenges to operational efficiency and, at times, compromising aviation safety. The International Air Transport Association (IATA, 2024) reports that disruptive passenger events now occur at a rate of 1 in every 568 flights, with verbal abuse, intoxication, and non-compliance among the leading causes.

    The former FAAN spokesperson said : “Therefore, navigating conflict for a safer aviation industry involves not only addressing existing disputes but also developing institutional frameworks, leadership capacities, and communication structures that promote a culture of safety, trust, and collaboration.

     “Understanding how conflicts affect aviation operations and exploring strategies for mitigating them is vital for ensuring a secure, efficient, and resilient air transport system capable of supporting global and national development goals.’

    Also speaking, President, Topbrass Aviation, Captain Roland Iyayi urged aviation authorities to fix challenges of inadequate infrastructure and provide the requisite training for personnel to enable them handle conflict arising from flight activities.

    Iyayi  said fixing such identified gaps will put players in the best position proactively to handle conflict situations.

  • ‘Govt should reconsider Capital Gains Tax in best interest of economy

    ‘Govt should reconsider Capital Gains Tax in best interest of economy

    Finance and economic experts have called on the Federal Government to reconsider the timing, the size and general nuances of the implementation of the new Capital Gains Tax (CGT) regime.

    The CGT is part of the new tax laws, which are scheduled to take effect in January 2026. Under the new CGT regime, the former flat 10 per cent CGT rate, which had been suspended, has been replaced with progressive income tax rates ranging from 0 to 30 per cent, depending on the investor’s overall income or profit level.

    Experts said while CGT has been part of global economic tools by most economies, the consideration and implementation differ from country to country. They said CGT could be counterproductive, if not well considered.

    Experts who spoke included Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf; Managing Director, AIICO Capital, Dr Femi Ademola and Managing Director, HIghCap Securities, Mr David Adonri.

    Yusuf noted that the proposed increase in CGT from 10 per cent to 30 per cent represented a significant shift, which may boost government revenue in the short term but later have far-reaching and broader economic and investment consequences.

    According to him, the sectors that would be most impacted are the capital market, real estate, and venture capital, where capital gains are a major driver of investment decisions.

    “The scale of the increase, a 200 per cent jump, is steep and raises concerns about its potential impact on investor behaviour, market liquidity, and overall economic competitiveness,” Yusuf said.

    According to him, beyond sectoral disruptions, the proposed tax increase has wider macroeconomic implications as high taxes often dampen investor confidence, discourage new inflows, and reduce the overall attractiveness of the investment environment.

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    “There is also a real risk of capital flight, as investors may redirect funds to countries with more favourable tax policies. Additionally, steep taxes tend to encourage informal transactions, reducing transparency and weakening tax compliance. While the government may initially see a revenue uptick from large transactions, this effect is likely to taper off as trading volumes shrink and taxable activity declines over time.

    “The abruptness of the proposed increase is a major concern. A 200 per cent jump in CGT is excessive by any standard and could destabilise sectors that rely heavily on capital gains. It also undermines Nigeria’s competitiveness in attracting and retaining both domestic and foreign investment. Such a policy risks creating unintended distortions across the economy,” Yusuf said.

    He urged the government to consider a “more measured approach” in the implementation of the new CGT.

    He called for phased implementation that introduces any increase gradually to allow investors time to adjust, differentiated rates with lower rates to productive and long-term investments, while taxing short-term speculative gains more and targeted incentives that protect strategic sectors such as real estate, venture capital, and private equity to sustain investment flows.

    He added that the broader tax reforms also need to focus on improving compliance, widening the tax net, and plugging leakages rather than relying solely on higher rates while the government need more stakeholder engagement by involving market operators and investors in the policy design process to ensure alignment with growth objectives.

     “The proposed CGT increase may provide short-term fiscal benefits but carries significant long-term economic risks. It could weaken market liquidity, slow down real estate transactions, discourage venture capital, and dampen investor confidence. A more balanced and phased approach would help achieve the government’s revenue objectives without undermining investment sentiment or market stability. Sound fiscal policy should stimulate economic activity and investment, not stifle it. A carefully calibrated CGT regime is therefore essential to maintain Nigeria’s competitiveness and sustain growth,” Yusuf said.

    Ademola, a Chartered Financial Analyst, explained that while every country has a tax on capital gains on investments especially gains on investments in financial instruments, implementation has always been an issue in developing economies like Nigeria.

    He said: “While the idea of tax reforms is very good, the timing may not be apt. Most economies are currently introducing policies to attract investments into their country which has worked well for Nigeria over the last two years.

     “The introduction of this capital gains tax at this time may be counterproductive. The new tax appears not to offer the usual exemptions for disposals of government securities and may thus be spooking foreign investors; and making them exit their investments. It is especially uncertain for foreign investors who might have made gains in Naira terms but made losses due to currency translation.

     “The impressive performance of the market over the last two years may have made the government to think that it is a good time to share a part of the market gains; however, it may have some unintended consequences as can be seen by the cautious behaviours of the portfolio investors.

     “In my opinion, the reform of the capital gains tax may be a good policy which time has not come. We need to consolidate more on the gains of the economic reforms and maybe spend more time on simplifying and clarifying the implementation of the capital gains tax implementations before making it effective”.

    Adonri noted that the 10 per cent CGT had been suspended indefinitely to enable the market establish competitive edge and the sudden lifting and increase to 30 per cent for transactions above N150 million was a serious disincentive to investment by Institutional Investors, foreign investors and high networth individual investors who usually undertake big ticket transactions.

     “It is a market unfriendly policy. The class of investors targeted by this obnoxious policy are the drivers and liquidity providers in the capital market. For a developing economy that expects the private sector to be the engine of growth, the imposition of tax on investment is antithetical to the quest for massive private capital formation needed to create wealth and generate productive employment.

    “What ought to be done is for government to give incentives to attract investors and not to impose excessive taxation or levies to chase them away. This policy has been fingered by several stakeholders as the main factor behind the recent massive selloffs in the equities market as investors run for cover,” Adonri said.

    Meanwhile, Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele has highlighted key provisions, benefits and modus operandi of the new CGT regime.

    He explained that the top rate of 30 per cent, which applies to large corporate investors, is expected to be reduced to 25 per cent under the broader corporate tax reform.

    He added that investors would now be able to deduct certain costs that were previously disallowed under the old regime, ensuring that “they are not taxed on a net loss position.”

    On exemptions, Oyedele explained that the new framework provides relief for small and institutional investors. Transactions with total sales proceeds not exceeding N150 million and total gains not exceeding N10 million within 12 months are exempt.

    Also exempted are reinvestments of proceeds into Nigerian company shares within 12 months, capital gains from foreign share disposals repatriated through CBN-authorised channels, and gains made by PFAs, REITs, and NGOs that are already income-tax exempt.

    He said: “Small companies with turnover not exceeding N100 million and total fixed assets not more than N250 million will pay zero percent CGT. Also, gains from investments in labelled startups by venture capitalists, private equity funds, accelerators, or incubators qualify for exemption.”

    To ensure fairness in implementation, Oyedele noted that for CGT effective from January 1, 2026, the cost base for existing investments will be reset to the higher of the actual acquisition cost or the closing market price as of December 31, 2025.

  • SEC, FMBN partner on non-interest mortgages

    SEC, FMBN partner on non-interest mortgages

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) and the Federal Mortgage Bank of Nigeria (FMBN) have reached agreement on a strategic collaboration that will see the development of a robust non-interest mortgage framework.

    The agreement, reached at the weekend in Abuja, seeks to create and regulate viable, Sharia-compliant financing structures that will enable millions of Nigerians, particularly those excluded from conventional interest-based loans, to access affordable homeownership.

    With Nigeria’s housing deficit estimated to be over 28 million units, the initiative is a potential game-changer. It directly addresses a key barrier to homeownership: the affordability and religious compliance of mortgage products for a significant segment of the population.

    Director General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama said the SEC would provide the necessary regulatory guidance and framework to facilitate the issuance of Sukuk and other non-interest capital market products to fund mortgages.

    He said: “Our collaboration with FMBN is pivotal to unlocking long-term financing for the housing sector. By creating a clear regulatory pathway for non-interest mortgage-backed securities, we can attract ethical investors, both domestic and international, to channel funds into this critical area. This will create a virtuous cycle of funding, construction, and ownership”.

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    Managing Director, Federal Mortgage Bank of Nigeria (FMBN), Mr. Shehu Osidi, said the collaboration marked a critical step in fulfilling the bank’s mandate to provide affordable housing for all Nigerians.

    “For a long time, a substantial number of our citizens have been unable to participate in the National Housing Fund (NHF) scheme due to the interest-based nature of conventional mortgages. This partnership with SEC is a strategic response to that gap.”

     We are committed to developing non-interest mortgage products that are not only ethical and inclusive but also financially sustainable,”Osidi said.

    Also commenting, housing and finance expert, Mr Ebilate McYoroki , welcomed the development describing it as “long overdue.”

    He said: “This is a masterstroke in financial inclusion. It taps into a vast pool of potential homeowners and investors who have previously been on the sidelines. If implemented transparently, it could significantly accelerate the pace of housing delivery in the country”.

    He said the successful implementation of this framework is expected to not only reduce the housing deficit but also stimulate the construction industry, create jobs, and foster greater financial inclusion, ultimately contributing to national economic growth.

    Unlike conventional mortgages that charge interest, non-interest financing is based on principles of risk-sharing, asset-backing, and equitable returns. The models under consideration include Musharakah or Diminishing Partnership, under which the bank and the customer jointly purchase a property. The customer gradually buys out the bank’s share through periodic payments, eventually becoming the sole owner. There is also Ijara or Lease-to-Own, where the bank buys the property and leases it to the customer for a fixed period. A portion of the rental payments goes towards the eventual ownership transfer and Murabaha or Cost-Plus Sale, through which the bank acquires the property and sells it to the customer at a pre-agreed markup, payable in installments.

  • NASD lists Jilnas Nigeria’s N3 billion commercial paper

    NASD lists Jilnas Nigeria’s N3 billion commercial paper

    NASD Plc has listed Jilnas Nigeria Limited’s N3 billion Series 1 Commercial Paper (CP), the debut issuance under the company’s N10 billion CP programme.

    The offer opened on August 27, 2025 and closed on September 04, 2025, with maturity set for June 2, 2026.

    Arranged by Pathway Advisors Limited, the 270-day Series 1 CP offers investors a competitive 25 per cent yield per annum. Funds raised will support Jilnas’ short-term working capital needs as the company deepens its market leadership.

    Speaking on the transaction, Founder and Chief Executive Officer, Pathway Advisors Limited, Adekunle Alade, described the issuance as “a landmark achievement” that underscored investor confidence in Jilnas’ strong fundamentals, governance standards, and long-term growth prospects.

    He thanked investors for their support and commended NASD PLC for enabling a seamless listing process.

    Managing Director, NASD Plc,  Eguarekhide Longe, welcomed the new listing as a significant boost for the capital market.

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    He noted that more credible private companies are now leveraging NASD’s CP platform for transparent and structured access to capital and expressed optimism about the growing pipeline of upcoming listings.

    Market watchers explained that this momentum not only enhances market confidence but also creates a more vibrant ecosystem where well-governed businesses can efficiently access the capital they need to grow.

    Jilnas Nigeria Limited, founded in 1992, is a leading indigenous producer of edible vegetable oil. The Company has evolved from a 50 TPD operation into a modern processing powerhouse featuring a 200 TPD solvent extraction plant, three storage silos, a 200 TPD refinery, and a high-capacity roasting unit.

    Jilnas is widely regarded as the largest supplier of processed edible oils across Nigeria’s Southeast and South-South regions, with an extensive footprint reaching Northern markets.

    The company continues to post strong financial performance, recording revenue growth from N12.79 billion in 2021 to N45.57 billion in 2024. Jilnas also maintains an exemplary debt-service track record, having redeemed over N4.8 billion in previous CP and private note issuances.

  • Financial Reporting Council wins UNCTAD-ISAR honours

    Financial Reporting Council wins UNCTAD-ISAR honours

    The Financial Reporting Council of Nigeria (FRC) has received the prestigious International Standards on Accounting and Reporting (ISAR) Honours from the United Nations Conference on Trade and Development (UNCTAD) Intergovernmental Working Group of Experts on Accounting and Reporting.

    Interestingly, Nigeria was the only African country that was honored by the global body.

    The feat was in recognition of the Dr. Rabiu Olowo-led Council’s exceptional leadership, groundbreaking reforms, and transformative contributions to advancing sustainability reporting and corporate transparency in Nigeria.

    The award was presented to the Council during the ISAR Honours Celebration, which took place as part of the 42nd Session of the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR), currently being held at the Palais des Nations, Geneva, Switzerland.

    Nigeria was awarded based on the FRC’s leadership in developing a credible and globally aligned sustainability reporting framework, its multi-stakeholder engagement through the Adoption Readiness Working Group (ARWG), and its successful implementation of national reforms that positioned sustainability disclosure as a central pillar of Nigeria’s corporate governance and financial reporting system.

    In addition, the award was a reflection of the impact of FRC in the sustainability reporting landscape not only in Nigeria but globally with the Adoption Readiness Roadmap being a template for other countries.

    The endorsement of the National Roadmap for the Adoption of IFRS Sustainability Disclosure Standards (IFRS S1 and S2) by President Bola Ahmed Tinubu in 2024, played a pivotal role in advancing Nigeria’s sustainability reporting initiatives.

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    This endorsement not only reinforced the country’s commitment to adopting sustainability reporting but also translated Nigeria’s pledge made at COP 27 into concrete action.

    Also, it underscored the government’s strong political will to integrate sustainability and climate-related reporting into Nigeria’s economic framework, aligning with global best practices.

    To facilitate the successful implementation of these actions and build local capacity, the Council, under the leadership of Dr. Olowo, trained over 2,000 professionals. Additionally, it strengthened collaborations with international development partners, including the German Agency for International Cooperation (GIZ), to promote sustainable finance and support capacity development efforts.

    Speaking after receiving the award, Dr. Olowo said: “This honour reaffirms Nigeria’s leadership in advancing sustainability and transparency. It reflects our collective commitment to building a trusted, globally competitive reporting environment that promotes accountability, responsible investment, and sustainable growth.”

    The recognition at ISAR 42, which is still ongoing in Geneva, underscores Nigeria’s growing influence in shaping global sustainability reporting standards and highlights the FRC’s pivotal role in promoting transparency, responsible business conduct, and sustainable development across Africa.

    Olowo, the Executive Secretary/CEO of the FRC, had on,Wednesday, 12 November 2025, formally concluded his tenure as Chair of the 41st Session of the United Nations Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) at the United Nations Palais des Nations in Geneva, Switzerland.

    He had left a legacy of global impact at the UN body as Nigeria once again affirmed its leadership in advancing global financial and sustainability reporting standards.

    The ceremony, which was marked by the conduct of the elections and formal handover of the ISAR Chairmanship, constituted the conclusion of a record milestone of remarkable achievements by the FRC boss.

    Olowo was in November 2024, elected as the Chair of the 41st session of the UNCTAD-ISAR.

    The prestigious appointment was a testament to Dr. Olowo’s exceptional leadership and expertise in corporate reporting, which he had used in transforming and repositioning the FRC.