The Nation Newspaper

Category: Business

  • 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.

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    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.

  • Obi Cubana crowned Okpataozueora I of Oba

    Obi Cubana crowned Okpataozueora I of Oba

    Renowned businessman, philanthropist, and Chairman of the Cubana Group, Chief Obinna Iyiegbu (popularly known as Obi Cubana), has been conferred with yet another highly esteemed traditional title, Okpataozueora I of Oba, in Oba, Idemili South Local Government Area, Anambra State.

    The chieftaincy title was bestowed by the Igwe of Oba, His Royal Majesty,  Sir Augustine Chinedu Emelobe, GON (Eze Okpoko II of Oba), also known as Igwe Onyilingugba, Eze Orazuluchie, during the maiden Ofala Festival of Oba on Friday, January 9

    Speaking at the colorful ceremony marked by rich cultural displays, pomp, and pageantry, the revered monarch described Obi Cubana as an illustrious son of Oba whose life and achievements have brought immense honour to the ancient kingdom.

    The Igwe noted that the title Okpataozueora, a name symbolizing broadmindedness, upliftment of others, a sense of community, as well as courage, resilience, and excellence, was conferred in recognition of Obi Cubana’s outstanding contributions to human capital development, community empowerment, and the promotion of Igbo cultural heritage characterized by enterprise and hard work.

    The monarch further called on sons and daughters of Oba, both at home and in the diaspora, to accord the newly installed titleholder the respect befitting his status, applauding his sustained commitment to social impact, youth empowerment, and economic development within and beyond Oba land.

    In his acceptance remarks, Chief Obinna Iyiegbu expressed profound gratitude to the Igwe, the Oba Traditional Council, and the entire Oba community for the honour. He described the title as a call to higher service and reaffirmed his commitment to attracting greater goodwill, investment, and development opportunities to Oba and the wider Anambra State.

    The conferment of the Okpataozuora I of Oba title further underscores Obi Cubana’s growing stature as one of the most influential cultural ambassadors and philanthropists of his generation, whose impact continues to resonate across business, culture, and community development.

    This is yet another chieftaincy title that comes on the heels of a recently conferred chieftaincy as the Ife Igbo-Ji-Ka by the Igwe and traditional council of Enugwu–Ukwu na Umunri led by Igwe Ralph Obumnemeh Ekpeh, and last Saturday

  • 5.36m electricity customers remain without meters– NERC

    5.36m electricity customers remain without meters– NERC

    The Nigerian Electricity Regulatory Commission (NERC) has disclosed that 5.36 million electricity customers nationwide remain without meters, leaving them exposed to the unpredictable estimated billing methods by distribution companies (DisCos).

    According to the Commission’s third-quarter 2025 industry report published on its website, as of 30 September 2025, only 6.662 million of the 12.030 million active registered electricity customers across the 12 DisCos were metered, representing 55.37 per cent coverage. NERC stated that during the third quarter as of 2025, a total of 228,614 end-user customers were metered across all DisCos.

    Ibadan, Aba and Abuja DisCos recorded the highest number of meter installations, accounting for 23.38 per cent, 20.81 per cent and 19.06 per cent of total installations, respectively.

    The report noted that compared to the 226,959 customers metered in Q2 2025, there was a slight increase of 0.73 per cent in total meter installations in Q3 2025.

    Read Also: Transforming Nigeria’s economy: Policies, progress and continuity

    However, nine DisCos recorded declines in meter installation over the period, with Port Harcourt and Jos DisCos posting the largest drops of 62.35 per cent and 61.68 per cent, respectively. In contrast, Aba (+173.45%), Abuja (+38.28%) and Ibadan (+17.72%) DisCos recorded notable increases in meter installations during the quarter.

    “Out of the 228,614 end-user customers metered in Q3 2025, 176,302 (77.12%) were metered under the Meter Asset Provider (MAP) framework, 44,104 (19.29%) under the Vendor-Financed framework, 7,902 (3.46%) under the Distribution Sector Recovery Programme (DISREP), 175 (0.08%) under the Meter Acquisition Fund (MAF), and 131 (0.06%) under the DisCo-Financed framework,” the report stated.

    Under the MAP framework, a total of 176,302 meters were installed in Q3 2025, representing an 18.20 per cent increase compared to the 149,150 installations recorded in Q2 2025. Ibadan (53,441), Abuja (35,449) and Benin (26,690) DisCos recorded the highest MAP installations during the quarter, accounting for 30.31 per cent, 20.11 per cent and 15.14 per cent of the total, respectively.

  • Nigerian Tax Acts 2025: Pros and cons

    Nigerian Tax Acts 2025: Pros and cons

    Joseph Tegbe, Chairman of the National Tax Policy Implementation Committee (NTPIC), enumerates the benefits of the Nigerian Tax Reform Acts 2025, stating that it marks a significant turning point in the country’s pursuit of a robust and sustainable economy, writes Jill Okeke.

    Explaining what the Tax Acts 2025 means, Tegbe described it as a comprehensive overhaul of the country’s fiscal architecture, aimed at creating a modern, efficient, and transparent tax system that supports economic growth, development, and prosperity for all Nigerians.

    Tegbe, who is also the Director-General of the Nigeria-China Strategic Partnership (NCSP), affirmed that the new tax law is built around four key pillars: reconnecting the economy to the state, standardising and modernising fiscal administration, promoting predictability, and re-balancing the fiscal social contract.

    “By broadening the tax net, simplifying rules, and improving administration, we are creating a more predictable fiscal environment that supports businesses and households,” he explained.

    The NTPIC Chairman cited global best practices that informed the reforms, citing examples from South Korea, Singapore, and Rwanda, where tax reforms have driven economic growth and development. “These countries have shown that with the right policies, institutions, and leadership, it is possible to transform a nation’s economy and improve the lives of its citizens,” he said.

    According to him, the tax reform will protect low-income earners and small businesses, with measures such as zero tax rates for those earning up to N800,000 and the expansion of zero-rated VAT items for critical sectors, including healthcare, education, and agriculture.

    “By taking away the tax burden on small income earners and small businesses, the reforms aim to preserve livelihoods, encourage formal participation, and allow enterprises to grow organically. We recognise that these sectors are critical to our nation’s development, and we are committed to supporting them,” he noted.

    The Tax Acts 2025 also emphasises digitalisation and technology-driven tax administration, with the introduction of e-invoicing to improve compliance, transparency, and reduce administrative burdens, a significant step towards modernising the tax system and making it more efficient, he posited.

    Consequently, he emphasised that the success of the reform depends on careful implementation, necessitating ongoing engagement with stakeholders to ensure proper understanding.

    The implementation of the new Tax Acts is expected to stabilise the fiscal environment, support production, protect critical sectors, and modernise tax administration in line with global standards.

    It will also enhance Nigeria’s ease of doing business, attract foreign investment, and generate employment opportunities. “We are confident that these reforms will unlock new opportunities for businesses, investors, and entrepreneurs, and contribute to the growth and development of our economy,” he added.

    He acknowledged the arguments against the Nigerian tax reforms, which came into effect on January 1, 2026.

    Critics have argued that the Tax Acts 2025 will place an economic burden on citizens and would compound the economic hardship.

    Arguments against taxation

    According to the opponents of the new policy, implementing new taxes at a time when inflation is record-high (over 24% in late 2025), following the removal of fuel and electricity subsidies, is ‘draconian’.

    Besides, they claimed the reforms would worsen poverty and further erode the purchasing power of low-income earners.

    Fiscal autonomy and federalism: The proposed VAT sharing formula (55% for states, 35% for local governments, and 10% for the federal government) is criticised for potentially undermining the fiscal autonomy and sustainability of states. Northern stakeholders, in particular, have argued that it may disproportionately affect certain regions.

    Major interest groups, including opposition parties, claim the process was rushed with inadequate consultation of key stakeholders.

    Others opposed to it have expressed a lack of trust in the government’s ability to utilise tax revenue effectively, citing past failures in accounting for subsidy savings and a lack of tangible infrastructure development.

    Concerns have been raised regarding new provisions in the gazetted laws that allow for taxpayer arrests through law enforcement agencies, powers that were reportedly absent from the version originally passed by the House of Representatives.

    Rallying support for taxation

    Nevertheless, the Lagos State Chapter of the All Progressives Congress (APC) has described criticisms surrounding the new tax reform policy as largely driven by misinformation, sensationalism and political mischief.

    In a statement signed by its spokesman, Mogaji Seye Oladejo, the party said it was necessary to clarify the objectives of the reform in the interest of public understanding, national stability and informed civic engagement.

    Read Also: Will Nigeria breaks its mass metering jinx this year?

    According to the Lagos APC, the new tax framework is not targeted at low-income earners nor designed to impose additional hardship on struggling Nigerians.

    Rather, it said the reform prioritises the protection of vulnerable groups through expanded exemptions and a more progressive tax structure aligned with international best practices.

    The party noted that Nigerians within the lowest income brackets are either exempted from taxation under the new regime or will experience reduced tax obligations.

    It maintained that the reform is focused on efficiency, equity and accountability, adding that portrayals of the policy as punitive are misleading.

    The APC further argued that Nigeria could no longer sustain a modern economy on what it described as an outdated, fragmented and oil-dependent tax system.

    It recalled that the country had for years grappled with multiple taxation, overlapping mandates, revenue leakages and weak enforcement—conditions it said discouraged investment, stifled business growth and rewarded tax evasion.

    For businesses, particularly Micro, Small and Medium Enterprises (MSMEs), the party said the reform simplifies tax compliance, eliminates nuisance taxes and creates a more predictable fiscal environment. It added that the framework also promotes fairness by ensuring that large and profitable corporations contribute an equitable share to national development.

    The Lagos APC emphasised that taxation remains a key instrument for funding public infrastructure, education, healthcare, security and social protection. It stated that sustainable development is built on a functional social contract in which citizens contribute, and the government delivers, noting that the current administration is seeking to strengthen that relationship through fiscal reforms.

    While acknowledging that reforms of such scale require transparency, public engagement and sensitivity in implementation, the party said constructive criticism should be encouraged, but deliberate falsehoods must be rejected.

    Urging Nigerians to look beyond political rhetoric and fear-driven narratives, the APC insisted that the tax reform represents a difficult but necessary policy choice aimed at securing long-term economic stability rather than short-term political gains.

    The party said the reform is part of broader efforts to lay the foundation for a stronger, fairer and more sustainable economic future for Nigeria.

    “Contrary to the alarmist narratives peddled by the opposition, Nigerians earning within the lowest income brackets are either fully exempt or will experience reduced tax exposure under the new regime.

    “The reform targets efficiency, equity, and accountability—not punishment. Those who have chosen to weaponise falsehoods against this policy have done so out of either ignorance or calculated desperation.

    “The truth is simple: Nigeria can no longer run a modern economy on an archaic, fragmented, and oil-dependent tax structure. For decades, the nation suffered from multiple taxation, overlapping mandates, leakages, and weak enforcement—a system that stifled businesses, discouraged investment, and rewarded tax evasion. This reform decisively confronts those failures.”

  • Is acquisition the new shape of power sector?

    Is acquisition the new shape of power sector?

    A string of acquisitions is reshaping the power sector in a momentum scale that underlines the reforms and prospects of Nigeria’s most talked about sector. In this report, Deputy Group Business Editor, Taofik Salako, examines the implication of the biggest takeover in the electricity sector 

    There is a universal consensus on the importance of private capital inflows in the resolution of the Nigerian power problem. Finance, public and private, stakeholders agreed, is the linchpin to uncoil the long wire to power every house and business. 

    A recent United Nation Development Programme (UNDP) report on the Nigerian power sector identified finance as the key to unleash the full potential of the transformative initiatives by the government over the past two and half years. Starting from the landmark June 8, 2023 signing into law of the Electricity Act 2023 by President Bola Tinubu to the institutionalisation of the National Integrated Electricity Policy (NIEP) in May 2025, the power sector has been a focus of intense reforms by the government. These reforms- across generation, transmission, distribution and retailing, have shown appreciable results. The   Energy Commission of Nigeria acknowledged that several initiatives in recent period have seen the country’s electricity supply rising by 50 per cent, from historic 4,000 megawatts to 6,000 megawatts. But the gap is still wide and finance is the key. 

    “For the reforms in the sector to succeed, financing is key. Public finance alone will not solve the sector’s challenges, hence leveraging private sector capital is crucial,” the UNDP report stated. The NIEP also underlined that significant capital injection from the private sector is necessary for the success of the power sector reforms. The Energy Commission of Nigeria estimates that for every household to have affordable access to electricity, Nigeria must generate 40,000 MW.

    At the recent Mission 300 summit, President Tinubu underlined the importance of private, public partnerships in achieving mass electrification of Nigeria and other African countries. He estimated that Nigeria would require an investment of $23.2 billion for last-mile electrification, including contributions from the public and private sectors. This implies that existing and new investors must find the power sector attractive enough for huge capital investments.

    Major acquisitions in recent weeks appear to set up the Nigerian power sector as the thematic segment for the government’s 2026 consolidation agenda. In one instance, Transgrid Enerco Limited completed acquisition of 60 per cent equity stake in Eko Electricity Distribution Plc (EKEDC), the first market-driven acquisition of a Nigerian electricity distribution company since the power sector privatisation. With a large swathe of industrial, commercial and high-brow residential areas across Lagos and Ogun States, EKEDC is one of Nigeria’s largest electricity distribution companies (Discos) and generally regarded as of strategic importance to the nation’s economic growth.

    The acquisition was funded by debt and equity financing, underlining the chain of private capital inflows. Chairman, Transgrid Enerco Limited, Engr. Olubunmi Peters, said the acquisition reflected renewed confidence in Nigeria’s power sector.

    He said: “This transaction shows that Nigeria’s electricity distribution sector can attract long-term capital when there is a clear focus on operational excellence and disciplined execution”.

    Private equity comes to the market

    But the biggest transaction was the acquisition of the publicly listed Geregu Power Plc. Valued at nearly N3 trillion and currently contributing more than one-tenth of electricity to national grid, Geregu Power has all the trappings of an industry leader. The first power generation company (GenCo) to be listed on the stock market, Geregu Power interlinks national importance with private corporate growth and value creation. As such, the acquisition has been described as the most consequential acquisition in the Nigerian market in recent period. In a regulatory filing at the Nigerian Exchange (NGX), the board of Geregu Power stated that the company’s majority shareholder, Amperion Power Distribution Company Limited, owned by billionaire businessman, Femi Otedola, had undergone a restructuring of its ownership following a share sale and acquisition concluded on December 29, 2025. As a result of the transaction, MA’AM Energy Limited acquired 95 per cent equity interest in Amperion Power Distribution Company, thus the indirect controlling interest in Geregu Power previously held by Calvados Global Services Limited and Otedola was transferred to MA’AM Energy Limited. While the transaction did not involve the direct sale or transfer of shares of Geregu Power, the change in the ownership of the company’s majority shareholder resulted in a change in the ultimate beneficial ownership of 77 per cent of Geregu Power’s issued share capital.

    The transaction was reportedly valued at $750 million or about N1.1 trillion. The acquisition was financed by a consortium of Nigerian banks with Blackbirch Capital as the financial adviser.  This further underlined the strong private capital inflows into the power sector and enhanced investment assessment for the sector.

    With the change in beneficial ownership, the Femi Otedola-led board resigned immediately, paving the way for the appointment of a new board of directors by MA’AM Energy. While MA’AM Energy, an Abuja-based integrated energy company engaging in electricity generation and supply, energy trading, and marketing, has maintained a relatively low public profile, market analysts said its ability to close one of Nigeria’s largest private equity deal and put together consortium of institutional financiers was an indication of its strong presence and confidence in the energy sector. 

    The new board of director also represented a veritable intersection of public influence, governance, finance, technical experience and compliance. The new board is led by Senator Abdul-Aziz Yari, former Governor of Zamfara State and current Senator representing Zamfara West. Yari, a former chairman of the highly influential Nigerian Governors’ Forum, holds MSc in Public Administration, Finance and Investment Management from the University of Salford and a Certificate in Leadership and Change from the London School of Economics, in addition to other foundational education.

    Other non-executive directors included Abdulkadeer Njiddah, Principal Partner at Abdulkadeer & Co. (Chartered Accountants) who holds PhD in Accounting and Finance and a fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and Institute of Internal Auditors of Nigeria (FIIA); Usman Mohammed, an expert in infrastructure and private financing solutions and a chartered accountant with PhD in Finance and over 30 years’ experience in power sector utility diagnosis, reform, and transformation and Mohammed Sani Jaafaru, who holds MBA in Finance from Strayer University, Washington D.C and currently Chief Operations Officer at Advance Link Petroleum Limited.

    Also on the board as non-executive directors were Neka Adogu, a banker and financier of more than two decades, including as a General Manager at Access Bank Plc, Nigeria’s largest bank by assets and Mahmud Magaji, a Senior Advocate of Nigeria (SAN) and member of the Federal Judicial Service Commission with specialty in international dispute resolution. Meanwhile, outgoing Chief Executive Officer, Mr Akin Akinfemiwa and Deputy Chief Executive Officer, Dr. Julius Omodayo-Owotuga were retained to facilitate smooth management transition, working with the newly appointed board.

    A new power play

    Experts said the Geregu Power acquisition might be the beginning of a new era for the Nigerian power sector.

    Read Also: Will Nigeria breaks its mass metering jinx this year?

    Managing Director, GTI Capital, Mr. Kehinde Hassan, said the transaction, valued at approximately $750 million, set a new benchmark for GenCo valuations in Nigeria.

    “It is likely to influence future mergers and acquisitions, stimulate private equity interest, and reshape asset pricing across the power sector.

    “Beyond Geregu, the deal carries broader implications for the Nigerian power industry. A $750 million investment in a sector often labeled “high-risk” sends a powerful signal about the underlying potential and long-term value of Nigeria’s electricity market. This could catalyze further GenCo and DisCo acquisitions, attract renewed interest from domestic institutional investors, and spur recapitalization efforts across the value chain,” Hassan, a Fellow of the Institute of Chartered Accountant of Nigeria (ICAN) and Chartered Institute of Stockbrokers (CIS), said.

    He also noted the timing of the acquisition. According to him, the acquisition coming at a time when the Federal Government is planning a N4 trillion power-sector liquidity fund, further positions the sector as increasingly private‑equity friendly and primary target for deeper financial participation.

    Managing Director, Arthur Steven Asset Management, Mr Olatunde Amolegbe, said stakeholders were optimistic that the new owners would deploy the necessary technical and financial capability to increase the capacity and efficiency of the company to enable it meets its mandate to all stakeholders.

    He said: “The company was quite profitable under the previous owners, though some investors felt its price multiple was too high. The new owners will need to prove that its stock price is well justified”.

    Managing Director, Vetiva Securities Limited, Mr. Abiodun Adeniran, said while the private equity nature off the deal did not elicit any major immediate market reactions, market expectations would be subject to the expertise that MA’AM Energy is bringing on board and the impact on operations and financial performance going forward.

    “This is just unfolding and the market is patiently waiting for the new strategic direction,” Adeniran said.

    Hassan also echoed the same sentiment. According to him, with the shift in ownership, the market is expected to adopt a cautious, observant stance as it awaits clarity on the new owners’ strategic direction.

    He noted that while a key focus for investors would be governance and management continuity, stakeholders would be watching closely to see whether the new leadership will maintain Geregu’s strong dividend culture, operational efficiency and commitment to expansion pipeline, including the proposed Geregu II and III projects.

    Managing Director, HighCap Securities, Mr. David Adonri, said stakeholders are eagerly waiting for the new board’s strategic plan.

    For minority shareholders, while the deal signaled a major positive momentum for the power sector, the underlying importance would be determined by value creation. With a free float of about 19 per cent, Geregu Power is a company of public concern.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, said the size and nature of the deal were quite symbolic for the Nigerian economy, the power sector and the capital market.

    He noted that with the broad experience of the new board and the strategic assets under Geregu, the market expectation was high.

    He said such huge investment of above N1 trillion by Nigerians in a Nigerian company, especially in the critical power sector, primarily deserves commendation, describing it as a good response to President Tinubu’s quest to deepen domestic private investments.

    According to him, when Nigerians show willingness to participate in the country’s infrastructural development, such a move carries not only the potential value creation but also reinforcement of hope and confidence in the long-term outlook of the economy.

    He urged the new owners to adopt best practices in stakeholders’ management through fair consideration for all and inclusive engagement.  

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude echoed similar sentiment.

    He noted that the $750 million Geregu transaction was a huge transaction that would define investments in the electricity sector as it might trigger other similar transactions soon.

    He however said minority shareholders were concerned about the new core investors and their plans.

    “My sincere appeal to them is for them to act in good faith and pilot the affairs of the company in proper manner in line with good governance that brings benefit to all stakeholders,” Igbrude said.

    Another shareholders’ leader, who craved anonymity, said the deal would only be justified if it leads to real improvements in power generation, accountability and sustainable returns.

    As the new board of Geregu prepares for its first formal meeting that is expected to deliberate on composition of important committees, strategic announcements and the principle of corporate direction, stakeholders may view the ownership change through the fundamentals of the company. By the third quarter ended September 30, 2025, Geregu Power recorded total revenue of N131.47 billion, with pre and post tax profit of N37.46 billion and N25.1 billion respectively. Earnings per share was thus at N10.04 by third quarter 2025. Total assets meanwhile stood at N273.15 billion by September 2025, as against N243.47 billion recorded by December 2024.

    For the first quarter ending March 31, 2026, Geregu Power projected total revenue of N57.12 billion within the three-month period. Gross profit was estimated at N22.88 billion while operating profit, profit before tax and profit after tax were expected at N18.12 billion, N17.06 billion and N12.03 billion respectively. For stakeholders, the task before the new core investor is to unlock the financial value and national contribution.

  • Raising financial services standards with consumer awareness, protection

    Raising financial services standards with consumer awareness, protection

    The Central Bank of Nigeria (CBN) reaffirms its commitment to educating consumers on key issues around financial services offerings and complaints resolutions. Issues around financial literacy, complaints resolutions, entrenching the right to privacy and confidentiality are receiving regulatory support. Already, the Customers Bill of Rights approved by the CBN highlights the central role of customers in business success, and role of banks in ensuring a safe and secured banking system, reports Ibrahim Apekhade Yusuf

    As a financial sector regulator, the Central Bank of Nigeria (CBN) has a duty of care, ensuring that it provides excellent guidance that ensures that bank customers get the best services for their patronage.

    Central to achieving this goal is the need to provide financial literacy, complaints resolution mechanisms, protecting customers’ right to privacy and confidentiality.

    The regulator has also gone a step further by providing guidance to bank customers on what their obligations to the lender are.

    According to CBN Governor, Olayemi Cardoso, while the apex bank continues to lay the foundation for price stability and foster a conducive policy environment, the role of banks in this journey remains crucial.

    “At the Central Bank, we have intensified surveillance of market activities to ensure compliance. Together, we must build a market based on strong governance and transparency. As regulators, we will maintain a zero-tolerance approach to compliance violations,” he said.

    On its Consumer Education Series shared across social media platforms, the CBN educated bank customers on what they need to know about Bank Verification Number (BVN) Watchlist.

    It said: “Do You Know that your Bank Verification Number is more than just numbers, it is your financial identity in the Nigerian banking system. BVN Watchlist contains the records of individuals or institutions who have been confirmed to engage in fraud, financial misconduct or serious violations of banking rules.

    Continuing, it said: “If your BVN is listed: Go to your bank, find out what exactly the problem is and work to settle it; Do not forget to use your BVN and your account responsibly, honor your financial obligations and never participate in, support or benefit from fraud.”

    The CBN also highlighted issues around understanding the difference between needs and wants as it provides financial literacy lessons to the public.

    It asked: “Did you know that financial literacy helps you distinguish between your needs and your wants? Smart money management starts with knowing the difference. When you understand this, you are better equipped to make informed decisions about how to spend, save, and budget your money”.

    It explained further: “Needs are essential things you must have to live and function. These include food and water, basic healthcare, shelter or rent, school fees, and other necessities. Wants are things that are nice to have but not essential for survival. They add comfort, style, or enjoyment, such as eating out frequently or buying luxury items. Before you spend, pause and ask yourself: Do I need this, or do I just want it?”

    Earlier, the apex bank unveiled the Bank Customers’ Bill of Rights during “CBN Fair” held in Lagos, with the theme: “Driving Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development” highlights the rights of customers and their obligations to the banks.

    The Bill of Rights, insisted that a bank customer has a right to be informed, right to choose, right to safety, right to privacy and confidentiality, and the right to redress. Others include right to good service, right to equality and right to free monthly statement of account.

    On the other hand, the report listed certain obligations that a customer owes to his or her bank. They include duty to financial obligations, duty to protect instruments and information, duty to provide factual information and not to mislead the bank, duty to report suspected fraud or error and duty of personal safety and safety of assets.

    Speaking during the event, the CBN Acting Director, Corporate Communications Department, Mrs. Hakama Sidi Ali, said the Management of the CBN, under the leadership of Cardoso, is committed to protecting the rights of bank customers and promoting quality services.

    Ali said the core objective of this engagement, therefore, is to sensitize members of the public on how the bank’s policies and innovations can enhance their lives and livelihood and contribute to the growth and development of the Nigerian economy.

    She explained that as a means of protecting banks’ customers and ensuring that they are not short-changed, the CBN launched the Unified Complaints Tracking System (UCTS), aimed at streamlining and improving the management of consumer complaints against financial institutions. The system, alongside a USSD code (*959#) for verifying licensed institutions, enhances transparency and consumer protection in the Nigerian financial sector.

    “The core objective of this engagement, therefore, is to sensitize members of the public on how the Bank’s policies and innovations can enhance their lives and livelihood and contribute to the growth and development of the Nigerian economy,” she said.

    Other stakeholders insisted that at the heart of the CBN strategy is its commitment to maintaining economic stability.

    “Administration prioritized an inflation targeting framework, which has been pivotal in controlling inflation and stabilizing the naira through careful adjustments in the monetary policy, rate and other instruments. The CBN has kept the economy on a steady course despite global economic headwinds,” they said.

    “This year has been marked by innovative reforms and realignments, significant upgrades were made to digital platforms, automating financial processes and implementing stringent cyber security measures to protect assets and data,” they said.

    The participants’ concerns around banking system stability, customer services and complaints were addressed by CBN team from the Other Financial Institutions Department, Payments System Policy Department, Consumer Protection and Financial Inclusion Department, Currency Operations and Branch Management Department, and Financial Markets Department.

    Understanding the Bill of Rights

    The bill of rights described the customer as the most important person in the economy and every business succeeds only when the customer is happy.

    Describing the customer as a king, it said: “As a king, the customer has many rights. But a king also has duties which he owes himself and the society. In Nigeria, customers of banks have certain rights and duties guaranteed by law, regulation and conventions.”

    The report disclosed that a bank customer has a right to disclosure of information from his/her bank on products and services the bank offers.

    “The information provided must be complete, relevant and truthful. Your bank must explain to you understanding all contractual terms and charges prior to the consummation of any agreement or contract. This right enables you to have relevant information in order to make rational choices. It amounts to a breach of right if your bank fails to provide this information or deliberately misleads you in any way,” it said.

    According to the apex bank, bank customers also have a right to select from the range of products and services made available by your bank at competitive prices.

    “This means that as a customer, you can, at all times, decide on the product or service to accept/purchase and the ones to decline. It is wrong for a bank to restrict your choices or compel you to accept/purchase products or services that are ill-suited for your needs. Where you are not satisfied with your bank’s service delivery on any product or service, you have the right to end the contract or even the banking relationship provided you settle all outstanding commitments,” it said.

    The CBN explained that the right to safety requires a bank to guarantee all its customers a secure and conducive banking environment devoid of threats to their safety and health.

    “You have the right to be reasonably protected from accidents while on the premises of your bank. You also have the right to be protected from negative effects of pollution of any kind whether arising from your bank’s operations or from other sources. It is necessary to stress that your bank is obligated to adhere strictly to applicable safety and directives to ensure that your safety and well-being are adequately guaranteed while you are on the premises of your bank,” it said.

    The bill of rights, described the customer as the most important person in the economy and every business succeeds only when the customer is happy

    Continuing, the apex bank also highlighted the customers right to privacy and confidentiality.

    It explained that as a bank customer, one has the right to freedom from disclosure of your account details by your bank as intrusion into your account by a third party.

    In other words, a bank is not to divulge your account information to a third party; a bank must also protect customers’ information from unauthorised access by a third party.

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    It however, stated that there are expectations to this right where a bank is required by law to make disclosure; and where a customer consents to the disclosure.

    “A bank must provide its customers a redress mechanism to express their displeasure or grievance. The mechanism must be free, accessible, transparent, timely and convenient. You have a right to an efficient complaints management system through which you can lodge complaints against your bank. You also have the right to be kept abreast of the resolution process (acknowledgment, feedback, updates, and explanation) and ultimately, basis of decision. Where you are not satisfied with the decision of your bank, you have the right of review either by your bank, the Central Bank of Nigeria (CBN) or the court,” it stated.

    The CBN however, stated that all customers have a right to value for their money which involves the right to be treated with respect and dignity by banks and their representatives.

    “The hallmark of banking is customer satisfaction and as such your bank would have failed if it was unable to offer quality and value-adding banking services to you as a customer. Part of this right is that your bank must provide appropriate response to your needs and complaints,” it said.

    Bank customers also have the right to equality. Here, the  right requires that a customer is treated equally as other customers regardless of differences in financial standing/deposit balance, physical ability, age, gender , ethnicity, or creed. It is wrong for a bank to offer preferential treatment to some customers at the expense of other similar kinds of customers. However, banks may decide to differentiate customers on account of the nature of products customers purchase or subscribe to.

    The report also highlighted customers’ obligations to their banks.

    “This represents the cornerstone of your duties as a bank customer and involves the search for relevant knowledge that should lead you to make informed decisions and enhance your benefits. Without adequate knowledge, customers are bound to make ill-informed decisions which may precipitate an avalanche of complaints from customers against their banks. It is generally agreed that sophistication in the banking industry has tasked the understanding of even people that are financially literate; it is, therefore, your responsibility to “shine your eyes” when dealing with your bank,” it said.

    Branch Controller, Central Bank of Nigeria, Lagos, Sunday Daibo, said the apex bank is taking steps to ensure more people are brought into the digital payment network.

    He said: “In a world where technology is reshaping economies and redefining how people interact with financial services, alternate financial services have emerged not as an option, but as a necessity.  They are the bridges connecting the underserved populations to the formal financial system,” he said.

    “Today’s gathering brings together policy makers, financial institutions, FinTech innovators, merchants and the public, all stakeholders in a single mission to make financial access to the person and to ensure that every Nigerian, regardless of location or status, can participate in and benefit from our nation’s economic project progress.”