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Category: Special Report

CBN’s FX reforms narrow rate gaps, boost investor confidence

In recent months, the gap between official and parallel market exchange rates has narrowed considerably, thanks to the Central Bank of Nigeria’s (CBN) commitment to market-driven pricing of the naira. This strategic move is not only enhancing transparency but also rebuilding investor confidence. With a blend of disciplined reforms and clear policy direction, the naira has stabilised at a more sustainable level against the dollar. Analysts agree that, with FX speculation no longer a viable option, the CBN must maintain its current policies to ensure long-term stability for the naira against global currencies, reports Assistant Editor COLLINS NWEZE.

For decades, efforts to bridge the gap between official and parallel market exchange rates in Nigeria yielded little success. Foreign exchange speculation thrived, with round-tripping becoming rampant and speculators raking in billions of dollars through illicit transactions. That narrative began to change with the introduction of forex reforms led by the Central Bank of Nigeria (CBN), which significantly narrowed the disparity between the two markets. For example, while the naira currently trades at N1,599 to the dollar in the official window, it exchanges at N1,600 in the parallel market—reflecting a negligible difference of just N1.

Commenting on the development, Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, noted that the renewed stability in the exchange rate has restored investor confidence and encouraged autonomous forex inflows through formal channels. He explained that Nigeria’s foreign exchange sources are now diversifying beyond oil, with significant contributions from diaspora remittances and export earnings.

The improved exchange rate stability has drawn praise from market observers, including the widely respected Fitch Ratings, which recently upgraded Nigeria’s credit outlook. The agency cited several key reforms—such as the unification of exchange rates to curb arbitrage, the launch of an electronic FX matching platform, the adoption of a new FX code to enhance market transparency and efficiency, and the tightening of monetary policy to rein in inflation—as reasons for its positive assessment.

Cradoso said: “The numbers speak for themselves. The difficult reforms that were undertaken have begun to bear fruits. The orthodox monetary policy is a route we can’t compromise on. For adopting orthodox monetary policy, we have been able to stabilise the macroeconomic credentials of the economy.”

Cardoso said that the apex bank has strengthened its monetary buffers and positioned Nigeria to better withstand external shocks. “Indeed, the macroeconomic stability we are beginning to see today would not have been possible without these decisive actions. Nigeria’s external buffers have also strengthened considerably. Our foreign reserves now exceed $38 billion, providing nearly ten months of import cover. This robust buffer enables us to better withstand external shocks – whether from declining oil prices or global financial turbulence – thereby safeguarding our economy,” he said.

Cardoso further revealed that in 2024, Nigeria posted a balance of payments surplus of $6.83 billion—its strongest in years—fuelled by growing exports and a resurgence of capital inflows. “At the same time, we are enhancing the strength of our financial sector. The banking sector recapitalization is well underway, with strong momentum and stakeholder alignment, and will ensure that Nigerian banks are fully equipped to support the real economy with greater scale, stability, and capacity.

“At these Spring Meetings, our development partners expressed their confidence in Nigeria’s trajectory. Feedback from global investors and the Nigerian diaspora has likewise been overwhelmingly positive, reflecting growing alignment with our economic direction.

“Nigeria is increasingly recognised as a rising economic force, admired for the resolve shown in implementing difficult but necessary reforms. These achievements, while encouraging, only strengthen our resolve to press forward. We will not be complacent. Instead, we will redouble our efforts to ensure these positive trends are sustained,” he stated.

Continuing, he said: “To all Nigerians, these reforms are not easy, but they are delivering results. We have moved from a position of vulnerability toward one of growing strength, and our economic trajectory is beginning to turn positive. We return home mindful of global challenges yet filled with renewed commitment to stay the course and build on our gains in stability and resilience.”

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Global investors go for Nigeria assets

Speaking at the just-concluded Spring Meetings of the IMF/World Bank Group in Washington, D.C., during the Nigeria Investor Forum organized by JP Morgan, Cardoso reaffirmed that the adoption of orthodox monetary policies would be sustained. According to him, these measures have helped the Nigerian economy navigate a challenging path toward greater stability. He noted that foreign investors have taken notice of these reforms and have increased both their investments and commitments in the domestic economy. Cardoso also emphasised ongoing efforts to remove bottlenecks hindering investment flows and to close gaps in the foreign exchange market. He revealed that the Central Bank has been actively engaging with diaspora communities, who are now showing stronger interest in investing back home.

Cardoso acknowledged that the global economy is currently navigating a period of heightened uncertainty, but noted that the Central Bank of Nigeria has, over the past 18 months, implemented bold reforms to strengthen the country’s economic fundamentals—even in the face of crises. “We have taken tough but necessary decisions, and as a result, we are building a more resilient economy,” he said. He pointed out that Nigeria now has a more competitive naira, describing it as a game changer that is expected to attract increased foreign direct investment (FDI) into the country.

According to him, the prospects for FDI inflows have improved significantly, thanks to the more market-reflective exchange rate. He added that ongoing efforts to improve the ease of doing business will further boost investor confidence and support sustained capital inflows. JP Morgan has also announced plans to apply for a merchant banking licence from the Central Bank of Nigeria (CBN) in the coming months, as part of its broader strategy to deepen its footprint in Africa. In a report outlining its expansion plans on the continent, the American banking giant revealed intentions to upgrade its representative office in Lagos into a fully-fledged business branch. This move aligns with the bank’s ongoing efforts under the leadership of its CEO to strengthen its presence across key African markets.

JP Morgan, which has maintained a representative office in Lagos since the 1980s, said the planned transformation reflects its long-term commitment to Nigeria and the wider region. “The New York based financial institution, managed in Nigeria by Dapo Olagunju will apply to the Central Bank of Nigeria for a merchant banking licence in the coming months,” the report said.

If successful, the new U.S.-Nigeria entity will be able to offer dollar-denominated loans to large corporations, in addition to providing advisory and asset management services. This move aligns with JP Morgan’s broader strategy, championed by CEO Jamie Dimon, to expand the bank’s presence across Africa.

As part of that strategy, Dimon visited Nigeria in mid-October, where he met with Central Bank Governor Olayemi Cardoso. He also travelled to South Africa—where JP Morgan already operates a subsidiary—and to Kenya. Prior to the trip, Dimon had emphasized his intention to gradually expand the bank’s African footprint, aiming to add one or two countries every few years. Since then, JP Morgan has opened offices in Abidjan, Côte d’Ivoire, and Nairobi, Kenya, as part of its deepening engagement on the continent. A core aspect of the bank’s African strategy is to support countries in issuing Eurobonds—a role it played in Nigeria’s 2024 fundraising on the international market.

Preparing Nigeria for JP Morgan Index return

The Director-General of the Debt Management Office (DMO) has disclosed that Nigeria is in advanced discussions with JP Morgan to re-enter the Government Bond Index (GBI)—a move expected to boost investor confidence and enhance the country’s visibility in global debt markets. She noted that Nigeria has recently enjoyed more favourable credit assessments from international rating agencies, largely due to the far-reaching economic and monetary reforms introduced by the Central Bank of Nigeria.

In line with this trend, Fitch Ratings recently upgraded the Long-Term Issuer Default Ratings (IDRs) of seven Nigerian banks and two bank holding companies from ‘B-’ to ‘B’, assigning a Stable Outlook. According to Fitch, the upgrades reflect the improved sovereign credit profile of Nigeria, which now poses less of a constraint on the creditworthiness of individual banks.

Fitch also upgraded Nigeria’s Long-Term Issuer Default Ratings (IDRs) to ‘B’ from ‘B-’ on April 11, citing growing confidence in the government’s commitment to broad-based policy reforms. The decision reflects approval of Nigeria’s shift to orthodox economic policies since June 2023, including the liberalisation of the exchange rate, tightening of monetary policy, efforts to curb deficit monetisation, and the removal of fuel subsidies. “These have improved policy coherence and credibility and reduced economic distortions and near-term risks to macroeconomic stability, enhancing resilience in the context of persistent domestic challenges and heightened external risks,” Fitch said.

Nigeria was removed from the JP Morgan Government Bond Index in 2015, largely due to its departure from orthodox monetary policies and the imposition of capital controls in its foreign exchange management. Faced with falling oil revenues, the country introduced currency restrictions in an attempt to defend the naira, after efforts to stabilize the currency through the depletion of dollar reserves failed to stop its steep decline.

Prior to the removal, JP Morgan had cautioned Nigeria to restore liquidity to its currency market and ensure that foreign investors tracking the index could transact freely and efficiently. The inability to meet these expectations ultimately led to the country’s exclusion from the index. “Foreign investors who track the GBI-EM series continue to face challenges and uncertainty while transacting in the naira due to the lack of a fully functional two-way FX market and limited transparency,” the bank said in a 2015 note.

Economic prospects remain positive

Nigeria’s economy and businesses have much to look forward to in 2025, as the impact of economic reforms—particularly in the foreign exchange market, exchange rates, and substantial budget outlays—begin to yield positive results. Bismarck Rewane, Non-Executive Director of Parthian Partners, predicts that Nigeria’s economy will have exited the most challenging phase of its reform adjustments by 2025. He emphasised that the key to this recovery will lie in the strategic implementation of policies and the continued strengthening of institutional reforms. He underlined the critical role of investment in driving economic growth. “Revenue alone is not enough,” Rewane stated. “Investment is key, but it will be influenced by confidence, transparency, and the right policies.”

Rewane also highlighted ongoing challenges such as inefficiencies in power supply and a lack of transparency in the oil and gas sector, noting that these issues require urgent attention through structural reforms. He projected that 2025 would be a year of recovery, describing it as “less hard, less painful, and less difficult” compared to 2024. According to Rewane, while 2024 was marked by significant difficulties, these challenges do not necessarily indicate that they will persist into this year.

Meanwhile, Olufemi Shobanjo, CEO of NGX Regulation Limited, emphasized the critical role of liquidity in capital markets. He stressed the importance of initiatives aimed at enhancing investor confidence and ensuring the stability of the market.

Macroeconomic indicators uptick

Additionally, the Central Bank of Nigeria has taken strategic steps to address inflation. Recently, the CBN hosted the Monetary Policy Forum 2025, bringing together fiscal authorities, legislators, the private sector, development partners, subject-matter experts, and scholars. The forum, themed “Managing the Disinflation Process,” focused on key strategies for controlling inflation.

Cardoso highlighted that the CBN’s primary objective is to maintain price stability. He also discussed the bank’s planned transition to an inflation-targeting framework, alongside initiatives aimed at restoring purchasing power and alleviating economic hardship. The CBN is continuing its disciplined approach to monetary policy, aimed at curbing inflation and stabilising the economy. “These actions have yielded measurable progress: relative stability in the FX market, narrowing exchange rate disparities, and a rise in external reserves to over $40 billion as of December 2024. The CBN also focused on strengthening the banking sector, introducing new minimum capital requirements for banks (effective March 2026) to ensure resilience and position Nigeria’s banking industry for a $1 trillion economy,” he said.

To further improve the functionality of the foreign exchange market, the Central Bank of Nigeria introduced the Electronic Foreign Exchange Matching System (EFEMS), a tool that has proven effective in other global markets. The programme was designed to address forex market distortions, eliminate speculative activities, and promote transparency. EFEMS, which is commonly used in both developed and developing markets, provides real-time data on currency rates, trading volumes, and overall market activity. For many stakeholders, these initiatives under Cardoso’s leadership have not only revitalised the forex market and ensured long-term stability but have also laid a strong foundation for the broader economy and businesses to flourish.

Battle against inflation intensifies

The Central Bank of Nigeria’s policies, including the unification of the exchange rate, have spurred significant foreign capital inflows while reducing the bank’s intervention in the forex market. The floatation of the naira and the clearance of over $7 billion in FX backlogs have positively reshaped the country’s outlook among foreign investors. Multilateral organizations, including the World Bank, have hailed these as bold interventions that will enhance the economy’s long-term sustainability.

Upon assuming office, Cardoso revealed that his leadership immediately prioritized rebuilding Nigeria’s economic buffers and strengthening resilience. Before his tenure, inflation, which had surged to 27%, was one of the most pressing challenges. This was largely driven by excessive money supply growth. While GDP growth had stagnated at just 1.8% over the previous eight years, money supply was expanding rapidly, averaging about 13% growth annually. This imbalance not only fuelled inflation but also led to a sharp depreciation of the naira. Cardoso emphasized that inflation creates significant uncertainty for both households and businesses, acting as a silent tax by eroding purchasing power and driving up living costs.

Against all odds, the Federal Government has acknowledged the threat inflation poses to the welfare of Nigerians and is implementing strategic measures to bring the rate down to single digits while expanding investment opportunities for the economy. According to data from the National Bureau of Statistics (NBS), Nigeria’s inflation rate increased to 24.23% in March, up from 23.18% in February 2025. Cardoso said: “We recognize that inflation remains the most disruptive force to the economic welfare of Nigerians. Our policy stance is firmly focused on bringing inflation down to single digits in a sustainable manner over the medium term. Our goal is to restore price stability, protect household purchasing power, and lay the foundation for long-term investment.”

The CBN Governor stated that the recent upgrade by Fitch Ratings, which praised the unification of the exchange rate to reduce market arbitrage, the introduction of the electronic FX matching platform, and the implementation of a new FX code to enhance transparency and market efficiency, is a clear indication that the reforms are succeeding. Additionally, Cardoso highlighted that another key pillar of the reforms is the establishment of a market-determined foreign exchange regime.

“We have embraced market-driven pricing for the naira, significantly enhancing transparency and restoring investor confidence. Again, thanks to disciplined reforms and policy clarity, the naira has stabilized at a more sustainable level against the U.S. dollar. The once-wide gap between the official and parallel market rates has all but disappeared, a first in Nigeria’s recent history, and speculative arbitrage has all but vanished.

“This renewed stability has restored confidence and spurred autonomous inflows through formal channels. These inflows are diversifying our foreign exchange sources beyond oil,” he stated.

Cardoso said that the apex bank has strengthened its monetary buffers and positioned Nigeria to better withstand external shocks. “Indeed, the macroeconomic stability we are beginning to see today would not have been possible without these decisive actions. Nigeria’s external buffers have also strengthened considerably. Our foreign reserves now exceed $38 billion, providing nearly ten months of import cover. This robust buffer enables us to better withstand external shocks – whether from declining oil prices or global financial turbulence – thereby safeguarding our economy,” he said.

Speaking further, Cardoso said that in 2024, Nigeria recorded a balance of payments surplus of $6.83 billion, the strongest in many years, driven by rising exports and renewed capital inflows. “At the same time, we are enhancing the strength of our financial sector. The banking sector recapitalization is well underway, with strong momentum and stakeholder alignment, and will ensure that Nigerian banks are fully equipped to support the real economy with greater scale, stability and capacity.”

The path forward

The Central Bank of Nigeria’s bold embrace of market-driven foreign exchange reforms marks a pivotal shift in Nigeria’s economic direction. By narrowing the gap between the official and parallel market rates, the apex bank has not only tackled long-standing distortions in the currency market but also reignited investor confidence in the Nigerian economy. The adoption of a transparent pricing mechanism, coupled with strategic interventions such as the introduction of the Electronic FX Matching System and monetary policy tightening, has brought relative stability to the naira and reduced opportunities for arbitrage and speculation.

These measures are already yielding tangible results. Foreign portfolio inflows are rising, diaspora remittances are increasing through formal channels, and Nigeria’s balance of payments has recorded a significant surplus. International institutions and rating agencies have taken note. Fitch Ratings, for instance, upgraded Nigeria’s outlook, highlighting the effectiveness of the reforms in promoting macroeconomic stability.

While challenges such as inflation, power sector inefficiencies, and structural bottlenecks persist, there is growing optimism that Nigeria is emerging from the most painful phase of its reform journey. As 2025 unfolds, experts forecast a more stable economic landscape, provided the reform momentum is sustained and complemented by further improvements in ease of doing business, institutional transparency, and policy coordination.

Ultimately, the path to a fully resilient economy is gradual, requiring discipline, consistency, and collaboration among fiscal and monetary authorities. However, the foundation laid by the CBN’s current forex strategy offers a strong platform for long-term growth, renewed investor trust, and a more stable naira. If sustained, these reforms could mark a turning point in Nigeria’s economic narrative—one defined not by volatility and speculation, but by confidence, transparency and growth.

May 6, 2025
‘Tinubu addressing structural gaps in business sector’

Nigeria’s Cotton, Textile and Garment (CTG) sector is experiencing a long-awaited revival — and at the forefront of this resurgence is Ms. Ololade Majekodunmi, a leading voice for sustainable industrial growth. As National Coordinator of the Nigeria Cotton Society and MD of House of Dorcas Integrated Services, she offers rare insight into the new strategies reshaping the CTG landscape. In this exclusive interview, speaks candidly about the policy breakthroughs, persistent challenges and the bold vision driving the sector forward — and why, for the first time in decades, she believes Nigeria is poised to turn CTG into a true economic powerhouse. She spoke with Associate Editor ADEKUNLE YUSUF. Excerpts:

In a country brimming with entrepreneurial energy and a vibrant fashion scene, Nigeria’s Cotton, Textile and Garment (CTG) industry has long been a paradox — full of potential, yet plagued by persistent setbacks. But a fresh wave of strategic interventions is reigniting optimism in the sector, and few voices articulate this renewed hope more passionately than Ms. Ololade Majekodunmi, National Coordinator of the Nigeria Cotton Society and Managing Director of House of Dorcas Integrated Services (HDI). A seasoned business leader and a fierce advocate for local industry, Majekodunmi has emerged as a key figure in the evolving CTG narrative.

In an exclusive interview, she sheds light on the ambitious efforts underway to revamp the sector, the challenges still ahead, and the vision that could turn Nigeria’s CTG industry into a cornerstone of economic transformation. The recent unveiling of twin strategies by the National Economic Council (NEC) — the establishment of the Cotton, Textile and Garment Development Board and a N90 billion agribusiness/livestock plan — has marked a turning point in the CTG sector. For Majekodunmi, these aren’t just policy announcements; they are tangible signs of a new seriousness. “These are bold, strategic interventions,” she says. “They represent a coordinated approach to tackle both upstream production and industrial processing challenges. It’s a long-overdue move that can finally address structural issues in the CTG sector if implemented with discipline and inclusivity.”

For years, stakeholders have decried the fragmented nature of previous attempts to revive the industry — efforts that lacked cohesion, commitment, or continuity. But now, with NEC’s endorsement and clear signals from the presidency, the winds appear to be shifting. Majekodunmi notes. “I see the gaps this move intends to close: financing, industrial linkages, coordination, and structure.”

Majekodunmi explains further: “The twin strategies — the establishment of the Cotton, Textile and Garment Development Board and the N90 billion agribusiness/livestock plan — are bold, strategic interventions. They represent a coordinated approach to tackle both upstream production and industrial processing challenges. It’s a long-overdue move that can finally address structural issues in the CTG sector if implemented with discipline and inclusivity.

“From a policy perspective, these decisions reflect a government that is listening and willing to act. As someone directly involved in field-level coordination with the Nigeria Cotton Society and HDI, I see the gaps this move intends to close: financing, industrial linkages, coordination, and structure. NEC’s endorsement of both the CTG board and the agribusiness plan signals political will, which has often been the missing link.”

A holistic blueprint?

But are the plans truly comprehensive? While Majekodunmi believes the new strategies represent the most integrated approach seen in decades, she cautions that implementation must go further. “The plans reflect a more integrated view — linking agriculture, industry, trade, and innovation,” she says. “The plans reflect a more integrated view than we’ve seen in decades — linking agriculture, industry, trade, and innovation. However, “holistic” requires consistent consultation, data-driven execution, and state-level alignment. I would say this is a strong foundation, but further work is needed to ensure last-mile impact — especially around MSMEs, climate adaptation, and youth employment.

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“We also need to tie this vision into Nigeria’s broader manufacturing revival and food security architecture. Importantly, emphasis must be placed on gender equity and rural revitalisation. The inclusion of livestock under the same strategic plan is also smart — as it allows for cross-sectoral interventions, especially in areas like animal feed, cottonseed utilization, and value-added exports.”

According to her, success lies in the details: ensuring inclusivity for micro, small and medium enterprises (MSMEs), adapting to climate challenges, and embedding gender equity and youth empowerment at every stage. “The inclusion of livestock under the same strategic plan is also smart,” she adds. “It allows for cross-sectoral interventions, especially in areas like animal feed, cottonseed utilisation, and value-added exports. But we must tie this vision into Nigeria’s broader manufacturing and food security agenda.”

History is littered with failed attempts to resuscitate the CTG sector. What went wrong in the past? Majekodunmi doesn’t mince words. “Previous efforts lacked policy continuity, suffered from weak stakeholder engagement, and were often fragmented,” she says. “Importantly, many failed to address power infrastructure, smuggling, and access to affordable finance. Without tackling these systemic issues head-on, reforms couldn’t take root.”

Implementation, she explains, was often an afterthought. “Policies looked good on paper, but execution was weak. In some cases, there was duplication of efforts, insufficient data, and a lack of coordination among ministries and parastatals. When you do not monitor, you cannot enforce or learn — and that has been the story of CTG for decades.”

So why is she optimistic now? What’s different this time? “Success is a function of leadership, accountability, and inclusive implementation,” she says. “What gives me confidence this time is the body language of the present government, particularly the leadership of His Excellency, President Bola Ahmed Tinubu (GCFR).” Majekodunmi speaks glowingly of the administration’s deliberate focus on industrial revival. “This agenda is more than a slogan — it is birthing the Nigeria we have all been praying for.”

She also credits Vice President Kashim Shettima and the Minister of State for Industry, Trade and Investment, Senator John Owan Enoh, for showing “hands-on leadership and unwavering support.” “Stakeholders like Chief Aneibi Achimugu and Mrs. Nike Ogunlesi have also remained consistent champions. We’re seeing a convergence of political will and private sector readiness — and that is what gives me cautious but firm optimism.”

A sector poised for impact

One of the most promising signs of progress is the consultative approach underpinning the new CTG strategy. “This process marks a significant improvement,” Majekodunmi says. “Major cooperatives, private sector actors, and technical partners like HDI, Ruffle and Tumble, and the Nigeria Cotton Cooperative Society were consulted.” Yet she’s quick to stress that the conversation must be widened. “There is still room to deepen stakeholder engagement, particularly with rural farmers, women-led processors, and indigenous textile clusters.” Her interactions with the government have been notably substantive. “Our conversations have moved from abstract ideas to implementation discussions, where we are actively identifying bottlenecks and designing frameworks to remove them.”

Asked how far this administration can take the sector, Majekodunmi is emphatic: “This administration has the tools and mandate to make CTG a major forex earner and job creator. If they execute consistently, curb textile smuggling, and empower local players, CTG could rival oil in social impact.” She highlights ongoing work to co-develop a phased implementation model. “We are addressing challenges sequentially with clear accountability metrics. What I can assure Nigerians is that the work is ongoing, and the results will soon begin to show.” Even more exciting is the sector’s embrace of technology. “Expect to see a marriage between technology and CTG,” she says. “And that transformation will ripple across agriculture too.”

Reviving a sector long battered by infrastructure decay, smuggling and policy somersaults is no easy feat. But Majekodunmi believes the challenges can be subdued — if tackled smartly. “Challenges like poor infrastructure, access to working capital and quality assurance can be subdued through targeted financing, digitized value chain traceability and improved logistics,” she says. Incentives for local manufacturers, partnerships with development institutions, and formalisation of informal actors are all part of the plan. “We need regional infrastructure like inland dry ports, intermodal transport, and dedicated power for industrial parks. And we must prioritize skills development, especially through Technical and Vocational Education and Training (TVET) institutions.”

Do Nigerian stakeholders have what it takes to make this vision a reality? “Yes — Nigerian stakeholders are resilient, innovative, and ready,” she insists. “What we need is structure, reliable support systems, and access to the right tools and markets.” She sees the renewed hope agenda as a blueprint that offers just that. “This is not just about planting cotton or sewing garments — it’s about building a sustainable industrial ecosystem.” Her confidence stems from the daily commitment she witnesses. “With committed leadership across cooperatives, finance, manufacturing, and export bodies, we will make this work. And I see that commitment daily. To the government’s credit, they have been constantly in meetings with key stakeholders.

“We have had several direct engagements with the Minister of State for Industry, Trade and Investment, and I can tell you he is passionate and deeply committed to working with us all. Our conversations have moved from abstract ideas to implementation discussions, where we are actively identifying bottlenecks and designing frameworks to remove them. We are working hard with government to tackle the blockers, and the evidence is in the recent NEC approval of the CTG board — a milestone under the clear leadership of the Vice President.”

The engine of industrial growth

One of the most critical enablers of the CTG revival will be access to finance — and Majekodunmi says institutions like the Bank of Industry are already stepping up. “They’ve shown commitment with single-digit interest loans and cluster-based financing,” she notes. “They play a critical role in deploying affordable capital to mid-tier processors and rural aggregators.” Engagements are ongoing with other financial institutions, including the Bank of Agriculture and the Agricultural Development Fund. “Their readiness to support is encouraging,” she says. Even more promising are conversations with fintechs and private equity players. “We’re working on innovative blended finance options to fast-track real industrial growth.”

For Majekodunmi, the transformation of the CTG sector is not just an economic goal — it’s a deeply personal mission. “We are witnessing the rebirth of a national treasure — one that can clothe our people, empower our communities and enrich our economy,” she says. “The CTG sector can be a flagship of Nigeria’s industrial renaissance.” She envisions a future where Nigerian fabrics reclaim their place in global markets, where local tailors become exporters, and where rural communities thrive through cotton production and processing. “It’s not just about cotton; it’s about dignity, identity and shared prosperity. The Nigeria we are building will wear its own fabric proudly again. And with youth, technology and partnerships leading the charge — the CTG sector can become one of Africa’s strongest economic stories.”

As she looks ahead, Majekodunmi remains steadfast in her belief that this time will be different. “With youth, technology, and partnerships leading the charge — the CTG sector can become one of Africa’s strongest economic stories. The future is bright if we build sustainably. We are witnessing the rebirth of a national treasure — one that can clothe our people, empower our communities and enrich our economy. The CTG sector can be a flagship of Nigeria’s industrial renaissance.”

May 6, 2025
Bridging tradition, innovation in legal practice to advance justice

Beneath the weight of precedent and the pull of progress, Nigeria’s legal profession stands at a crossroads. At the maiden Law Week of the NBA Eti-Osa Branch, the urgent task of bridging tradition and innovation took centre stage—reimagining justice not as it was, but as it must become in a digital world, report Associate Editor ADEKUNLE YUSUF and EMMANUEL CHIDI-MAHA

As technology transforms every industry at breakneck speed, the legal profession must evolve—not by forsaking its proud traditions, but by fusing them with the innovations essential to safeguarding rights, reinforcing ethics and driving enterprise. This imperative came into sharp focus at the maiden edition of the Nigerian Bar Association’s Eti-Osa Branch Law Week, held from Friday, 25 April through Tuesday, 29 April 2025, at the Conference Centre of the Naval Dockyard in Victoria Island, Lagos.

Under the banner “Bridging Tradition and Innovation in Law: Advancing Rights, Ethics and Technology,” the Coastline Bar transformed its sea-facing venue into a dynamic forum where senior counsel, magistrates, tech entrepreneurs and young practitioners convened to chart the future of legal practice in Nigeria. Here, between polished panel stages and immersive breakout sessions, delegates confronted the realities of e-filing backlogs, virtual courtroom design, AI-driven research tools, and data-privacy safeguards. The symbolism was unmistakable: leather-bound volumes on one table, laptops streaming live case-management demos on another; bespoke suits clustered around traditional handshake greetings, even as smartphones pinged real-time poll responses. Each conversation underscored a singular truth—Nigeria’s justice system cannot thrive by resting on precedent alone. It must evolve alongside industries powered by code, cloud computing, and machine learning.

In his welcome address, Chairman of NBA, Eti-Osa Branch, Mr. Olanrewaju Bamidele Obadina, expressed profound gratitude as he declared open the maiden Law Week of the Coastline Branch. He recalled that the branch was formally established on February 29, 2024, following the creation of the Eti-Osa Judicial Division—a milestone made possible by the visionary leadership of the Honourable Chief Judge of Lagos State, Hon. Justice Kazeem Olanrewaju Alogba, in whose honour the inaugural lecture was dedicated. Obadina noted that the new branch covers a jurisdiction stretching from Ahmadu Bello Way in Victoria Island to Majek Village, encompassing a vibrant legal and commercial corridor. From inception, the branch engaged in rights-based advocacy and community service. However, its promising start was marked by tragedy—the loss of its pioneer Chairman, Mr. M.M.A. Sanni, in a road accident.

Reflecting on the theme of the event, Obadina said it was chosen deliberately to inspire legal practitioners to uphold timeless values while embracing the demands of modern legal practice. He urged participants to engage fully, recommit to service, and strengthen the profession for future generations. “From the very beginning, the Eti-Osa Branch hit the ground running. We immediately engaged in programmes that reflect the values of the Bar, especially human rights interventions and community engagement. However, our early strides were met with tragedy.

“As legal practitioners, we are called to uphold timeless principles of justice and ethics while responding to the new demands of an increasingly digital and complex world. We must embrace innovation without losing the soul of our profession. This week is not only a celebration—it is a call to recommit ourselves to excellence, unity, and service. I urge all of us to participate actively, share generously, and leave here better equipped to lead in both the courtroom and the community,” Obadina said.

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The week’s crescendo arrived on Monday, 28 April, when Dr. Muiz Banire (SAN) stepped to the podium. In a keynote that blended urgency with optimism, he challenged his peers to seize the moment before their practice is left behind. “I must confess it is exciting to be here today to lead discussions on a topic that queries yesterday, reviews the achievements of the moment, and looks into the future of our major—if not only—source of livelihood as lawyers,” Banire told an audience of bar practitioners, magistrates, and technology advocates. His message was clear: conservatism and coded procedures can no longer shield the profession from the tide of innovation sweeping the globe.

Banire painted a stark picture of a justice system in peril. Where is our e-filing system? he asked, lamenting the absence of a reliable digital infrastructure that could speed up case management. Where are the virtual hearing platforms capable of connecting judges, advocates, and witnesses across Nigeria’s vast expanse? More poignantly, where are the competent judges and the enforcement machinery necessary to turn judgments into reality? These rhetorical questions were not mere provocation. They underscored a lived reality in which even routine matters can drag through the courts for decades. Banire recalled a familiar courtroom joke: when an antelope learns the courts “are arresting all goats,” it joins the stampede—knowing it will take at least twenty years to prove its innocence. For many lawyers and litigants, justice is no longer a promise; it is a quagmire of lost files, stalled appeals, and decisions that “are worthless on paper.”

A legal system in crisis

Yet Banire refused to consign the profession to despair. He argued that resurrecting Nigeria’s administration of justice must come before any grand talk of artificial intelligence, virtual courts or blockchain-based registries. Only once the basics—case-tracking systems, digital filings, and transparent roll calls—are in place can true innovation take root. “Our justice system is broken,” Dr. Muiz Banire warned. “I could cite countless more examples in varying shades, but the conclusion remains the same: true justice is not being delivered in this country.” It is little wonder, he argued, that many Nigerians are increasingly turning to “self-help”—a dangerous trend born of deep frustration with a system they no longer trust. This concern is echoed in Aviomoh v. C.O.P. (2022) 4 NWLR (Pt. 1819) 69 at 112, paras. A–B, where Justice Ogunwunmiju of the Supreme Court lamented: “I would strongly deprecate the initiation of false criminal proceedings in cases having the elements of a civil dispute… Any effort to settle civil disputes and claims, which do not involve any criminal offence, by applying pressure through criminal prosecution should be deprecated and discouraged.”

Banire further highlighted how civil matters such as land and business disputes are now routinely handed over to law enforcement agencies, while communities suffer rising cases of extrajudicial killings and contract assassinations. Meanwhile, access to justice is being priced out of reach—court fees, legal retainers, and unofficial costs continue to soar in an unforgiving economic climate.

Justice in Nigeria did not die in a single moment, Banire observed—it was murdered by instalment, eroded gradually like a slow-acting poison or chronic illness we wrongly describe as “sudden.” He urged stakeholders to conduct a serious “prognosis” to identify the forces that have brought the justice system to its knees, starting with the deeply flawed process of appointing judicial officers. Under the Constitution, state Judicial Service Commissions—dominated by the Governor’s appointees—recommend judicial candidates, subject to National Judicial Council (NJC) approval. At the federal level, the composition is similar: mostly sitting judges, two Bar representatives, and one layperson—all appointed by the President. “Once the Governor backs a candidate, the recommendation is as good as done,” Banire said.

Though the NJC has set guidelines for minimum caseloads and judgments for aspirants, Banire warned of widespread “packaging”—states inflating candidates’ credentials with judgments they never authored. This opens the bench to mediocrities and “doubtful characters,” further undermining public trust. “As if incompetence were not damaging enough,” Banire continued, “what about character?” He argued that a morally bankrupt judge is even more dangerous than an unskilled one. Yet integrity, a non-negotiable trait, is too often ignored in the selection process. Shortlists remain hidden until final announcements, denying the public any chance to vet or raise objections. “I’ve long advocated for the public advertisement of judicial candidates and a civil society feedback window—just like we do for Senior Advocate appointments,” he said. “But my calls have gone unanswered.”

Beyond initial appointments, the elevation of judges to higher courts has devolved into raw politicking. While quotas and federal character principles were designed to promote equity, they have instead become veils for backroom deals. “Politicians no longer pretend to be neutral,” Dr. Banire charged. “They want their own judges at every level—‘he has worked for us and deserves a promotion.’” This transactional mindset manifests in rulings that lean toward political loyalty rather than legal principle. Echoing Lord Denning’s warning—“you cannot build something on nothing”—Banire argued that a judiciary weakened at its foundation cannot deliver justice at its highest levels.

These personnel failures are worsened by chronic underfunding. Many courtrooms are dilapidated, judges’ benches unstable, and essential technology virtually non-existent. Without functional e-filing systems, virtual hearing facilities, or prompt disciplinary frameworks, inefficiency festers. Errant judges and court officials often evade consequences due to bureaucratic inertia or insider shielding. “No amount of artificial intelligence hype will fix a system starved of basic infrastructure,” Banire warned. “Until we adequately fund the courts and enforce discipline swiftly and fairly, innovation will remain a pipe dream.”

True innovation means doing things better—more efficiently, equitably, and accessibly. While other professions have embraced technology to remove bottlenecks, the legal sector remains resistant. Many legal practitioners still view AI tools, virtual proceedings, and blockchain-based registries with suspicion, if not outright fear. Banire reminded the audience that law is not static but a living organism. To remain relevant and responsive, it must evolve with technological and societal change. Only then can innovation truly serve justice.

Why re-imagination is necessary

Nigeria’s legal system was built for a world of ink-stained files, clerical bottlenecks and in-person pleadings. But that world is vanishing. The present is defined by rapid case turnover, digital evidence, cross-border disputes, and clients whose expectations are shaped by real-time technology. Today’s legal challenges demand not only new tools, but also new mindsets, delivery models, and ethical guardrails.

Tradition has long been the soul of the legal profession, preserving procedure, precedent, and the gravitas of the courts. Yet tradition is now locked in an uneasy dance with innovation—a force that disrupts the familiar and opens the door to uncharted efficiencies. At the heart of this tension lies a fundamental question: How does the legal profession change without losing its core? With the emergence of Gen-Z lawyers—who bring fresh expectations about communication, culture and conduct—the challenge is urgent. The profession must decide how to reconcile a storied past with the promise of tomorrow, without eroding trust, diminishing ethics, or weakening justice.

Banire believes that technology offers a powerful path to a more accessible and efficient justice system—but only if lawyers, judges, and regulators evolve together. The goal is not to blindly adopt every new tool, but to build a deliberate, ethical, and secure bridge between the legal profession’s time-honoured values and the demands of a digital age. This transformation requires vision, training, and discipline. Innovation must not erode integrity; rather, it should enhance the fairness, transparency, and reach of justice. If done right, this reimagination of the legal system could mark the true rebirth of justice in Nigeria.

May 2, 2025
How banking sector reforms are shaping businesses, economy

At the just-concluded 2025 Spring Meetings of the International Monetary Fund (IMF) and World Bank Group, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso highlighted the positive impact of banking sector reforms on businesses and the broader economy. Cardoso acknowledged that while the economic reforms were challenging, they are beginning to yield tangible results, citing exchange rate stability, stronger economic buffers, a decline in inflation, and increased participation by foreign investors as clear signs of the early success of the macroeconomic initiatives, writes Assistant Editor COLLINS NWEZE

The adoption of orthodox monetary policies and reforms in the exchange rate regime continue to reverberate across key sectors of the economy. The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, said the reforms would be sustained, noting that they have helped steer the economy through a difficult path toward greater stability.

Globally, the past two years have been turbulent, with economies grappling with the aftermath of the COVID-19 pandemic, the ripple effects of the Russia-Ukraine war on energy and food prices, a surge in global inflation, and the subsequent tightening of monetary policy in advanced markets. Against this backdrop, Cardoso stressed the importance of sustaining and deepening reforms to strengthen Nigeria’s economic resilience and capacity to withstand external shocks.

He emphasised that tackling inflation, maintaining fiscal discipline, and driving economic diversification must remain top priorities. Another critical pillar of the ongoing reforms, Cardoso disclosed, is the commitment to a market-driven foreign exchange system—one designed to boost investor confidence and enhance economic efficiency. “We have embraced market-driven pricing for the naira, significantly enhancing transparency and restoring investor confidence.

Again, thanks to disciplined reforms and policy clarity, the naira has stabilised at a more sustainable level against the U.S. dollar. The once-wide gap between the official and parallel market rates has all but disappeared, a first in Nigeria’s recent history, and speculative arbitrage has all but vanished. “This renewed stability has restored confidence and spurred autonomous inflows through formal channels. These inflows are diversifying our foreign exchange sources beyond oil,” he stated.

Cardoso said that the apex bank has strengthened its monetary buffers and positioned Nigeria to better withstand external shocks. “Indeed, the macroeconomic stability we are beginning to see today would not have been possible without these decisive actions. Nigeria’s external buffers have also strengthened considerably. Our foreign reserves now exceed $38 billion, providing nearly ten months of import cover. This robust buffer enables us to better withstand external shocks – whether from declining oil prices or global financial turbulence – thereby safeguarding our economy,” he said.

Speaking further, Cardoso said that in 2024, Nigeria recorded a balance of payments surplus of $6.83 billion, the strongest in many years, driven by rising exports and renewed capital inflows. “At the same time, we are enhancing the strength of our financial sector. The banking sector recapitalisation is well underway, with strong momentum and stakeholder alignment, and will ensure that Nigerian banks are fully equipped to support the real economy with greater scale, stability, and capacity.

“At these Spring Meetings, our development partners expressed their confidence in Nigeria’s trajectory. Feedback from global investors and the Nigerian diaspora has likewise been overwhelmingly positive, reflecting growing alignment with our economic direction.

“Nigeria is increasingly recognized as a rising economic force, admired for the resolve shown in implementing difficult but necessary reforms. These achievements, while encouraging, only strengthen our resolve to press forward. We will not be complacent. Instead, we will redouble our efforts to ensure these positive trends are sustained,” he stated.

Upon assuming office in October 2023, the apex bank under his leadership prioritised reforms to rebuild Nigeria’s economic buffers and strengthen resilience. Inflation, which had surged to 27 per cent, was one of the most pressing challenges, partly driven by excessive money supply growth. While the GDP growth had stagnated at a meagre 1.8 per cent over the previous eight years, money supply expanded rapidly, averaging about 13 per cent growth annually. This imbalance not only fuelled inflation but also contributed to a significant depreciation of the naira.

Besides, inflation creates uncertainty for households and businesses, acting as a silent tax by eroding purchasing power and driving up living costs. To tackle the pressing challenge of inflation, the CBN acted decisively by raising the Monetary Policy Rate by 875 basis points to 27.5 per cent in 2024—an essential move to contain inflation and restore stability.

FX backlogs cleared

In the foreign exchange market, the country faced a backlog of over $7 billion in unfulfilled commitments and a fragmented FX regime characterised by multiple forex rates, which had encouraged arbitrage opportunities. This regime stifled much needed foreign investment, and led to the depletion of Nigeria’s external reserves, which fell to $33.22bn in December 2023. It must also be understood that the cost of the FX subsidy regime is estimated to far exceed that of fuel subsidies.

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The apex bank has also undertaken critical reforms to unify Nigeria’s exchange rate, eliminating distortions and restoring transparency. This unification has enabled it to clear the outstanding foreign exchange obligations, giving businesses—ranging from manufacturers to airlines—the confidence to plan and invest in the future. To further enhance the functionality of the foreign exchange market, the CBN introduced an electronic FX matching system, which has proven effective in other markets.

With these developments came positive Fitch Ratings on Nigeria’s economy, signalling positive fallout from the reforms. The global rating agency said that from exchange rate unification to reduce arbitrage in the markets, introduction of electronic FX matching platform and a new FX code to enhance transparency and efficiency in the market as well as deployment of monetary policy tightening to keep inflation on check, the CBN has demonstrated commitment to achieving sustainable economy growth and exchange rate stability.

Already, the latest Fitch rating moved Nigeria’s long-term foreign-currency issuer default rating (IDR) from negative to stable, meaning that the country stands a better chance of attracting foreign investment, borrow money on international markets at better interest rates, and boost investor confidence. Fitch also applauded government’s commitment to policy reforms implemented since its move to orthodox economic policies in June 2023, including exchange rate liberalisation, monetary policy tightening, and steps to end deficit monetisation as well as fuel subsidies removal. “These have improved policy coherence and credibility and reduced economic distortions and near-term risks to macroeconomic stability, enhancing resilience in the context of persistent domestic challenges and heightened external risks,” the agency stated.

Other policy measures

The apex bank recently took strategic step to enhance transparency and boost market confidence with the inauguration of the Nigeria Foreign Exchange Code (FX Code) in Abuja. The FX Code has so far ignited naira stability at both official and parallel markets. Cardoso also recently launched the FX Code, underscoring integrity, fairness, transparency and efficiency as essential pillars for fostering Nigeria’s economic growth and stability.

He emphasised that the FX Code was built on six core principles: ethics, governance, execution, information sharing, risk management and compliance, as well as confirmation and settlement processes. These principles, he explained, aligned with international standards while addressing the unique challenges within Nigeria’s foreign exchange market. According to Cardoso, “The FX Code represents a decisive step forward, setting clear and enforceable standard for ethical conduct, transparency, and good governance in our foreign exchange market. The era of opaque practices is over. The FX Code marks a new era of compliance and accountability. Under the CBN Act 2007 and BOFIA Act 2020, violations will be met with penalties and administrative actions.”

The CBN has stated that while every effort has been made to ensure that the FX Code comprehensively addresses various aspects of market conduct and practice, it is not intended to be exhaustive. Governor Cardoso also noted that the journey towards market reform is already yielding results. He stated, “The year 2024 was marked by structural reforms that sought to return the naira to a freely determined market price and ease volatility as several distortions were removed from the market.”

Beyond the foreign exchange market, the FX Code forms part of the CBN’s renewed focus on compliance across the financial sector. Its six guiding principles, alongside 52 sub-principles, were designed to become the benchmark for conduct across all participating institutions.

Issued as a guideline for the foreign exchange market, the FX Code is backed by the authority of the CBN Act of 2007 and the Banks and Other Financial Institutions Act (BOFIA) of 2020. These legislative instruments empower the CBN to establish and enforce directives regarding the standards financial institutions must follow in conducting foreign exchange business in Nigeria. The FX Code, therefore, serves as an official directive that all market participants are expected to observe in their operations.

Besides FX Code, the apex bank also introduced the Electronic Foreign Exchange Matching System (EFEMS), which has proven effective in other economies in enhancing the functionality of the foreign exchange market. The EFEMS was meant to check forex market distortions, eliminate speculative activities and instil transparency. The EFEMS, which is commonplace in developed and developing markets, offers real-time information on currency rates, trading volumes and market activity.

Policies attract more dollar inflows

As part of its efforts to boost diaspora remittances and support naira stability, the CBN recently announced the introduction of two new financial products designed to serve Nigerians living abroad. The Non-Resident Nigerian Ordinary Account and the Non-Resident Nigerian Investment Account were created to streamline remittances, encourage investments and foster financial inclusion among Nigerians in the diaspora. It said, “The Central Bank of Nigeria is pleased to inform the general public of the introduction of the Non-Resident Nigerian Ordinary Account and Non-Resident Nigerian Investment Account targeted at Nigerians in diaspora.”

The initiative is also expected to provide a secure and efficient platform for managing funds and investing in Nigeria’s financial markets. Since the beginning of this year, eligible NRNs have continued to get the opportunity to own any of the non-resident Nigerian accounts. The Non-Resident Nigerian Ordinary Account was designed to facilitate remittances by allowing non-resident Nigerians to remit foreign earnings into Nigeria and manage funds in foreign currency or naira. Deposits from sources such as salaries, allowances and dividends are supported, alongside spending on family maintenance, education, and healthcare.

On the other hand, the Non-Resident Nigerian Investment Account provides an opportunity for NRNs to invest in Nigeria’s financial markets, including foreign currency-denominated bonds, fixed deposits, and local assets like equities, government securities, and mortgage products. The CBN explained that both accounts offer currency flexibility, enabling holders to maintain balances in either foreign currency or naira. Account holders will also be able to convert funds between the two currencies at prevailing exchange rates through authorised dealers. The Non-Resident Nigerian Investment Account, in particular, was structured to promote investments in Nigeria’s financial instruments, such as the Diaspora Bond, and encourage active participation in the country’s economic development.

The CBN said the introduction of these accounts will harness the economic potential of Nigerians in the diaspora by boosting remittances and fostering investments in critical sectors. These and other measures, including the granting licences to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and enabling timely access to naira liquidity for International Money Transfer Operators (IMTOs). Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments.

April 29, 2025
Restoring hope to the economy with naira-for-crude policy

The Naira-for-Crude policy, designed to ensure the affordability and sustainability of petroleum supply, has sparked a fierce debate among experts. While supporters believe it strengthens the naira and boosts local refinery capacity, critics warn it could destabilise the currency and deter foreign investment. As the policy ends today, its future remains uncertain, with stakeholders divided on whether it should continue or be abolished. Assistant Editor MUYIWA LUCAS delves into the differing perspectives on this contentious issue.

The Naira-for-Crude policy was designed to support the domestic consumption of petroleum products. According to the government’s vision, the policy aimed to ensure a stable supply and optimise the use of local refining capacity. Additionally, it sought to eliminate the challenges associated with sourcing foreign exchange for petroleum imports. Proponents believed that the policy could enhance economic sovereignty and strengthen the local currency. Launched in October 2024, the policy was initially set to run for six months, with the final day scheduled for March 31.

However, just two weeks before the policy’s expiration, a major beneficiary—Dangote Refinery—announced that it would cease selling petrol in naira to the domestic market. This shift was due to the refinery no longer receiving crude oil in naira, but instead being left to refine oil that it imported using dollars. In response, the Nigerian National Petroleum Company (NNPC) Limited acted quickly, stating that it was in talks with Dangote and other local refiners. NNPC reaffirmed that the agreement was for an initial six-month period and subject to review.

Since the Naira-for-Crude policy’s implementation in October 2024, NNPC reported that it had supplied Dangote Refinery with over 48 million barrels of crude oil. As the policy’s end approaches, Zacch Adedeji, the Chairman of the Technical Sub-Committee on Domestic Sales of Crude Oil and Refined Products in naira, emphasised that the arrangement with local refineries had not been discontinued. However, recent developments may signal the conclusion of the policy.

Terms of sale and the debt burden

A key clause in the agreement stipulates that the sale of crude oil in naira is contingent upon the availability of the commodity. However, with the country facing challenges in meeting its production targets, fulfilling domestic obligations has become increasingly difficult. Under the Petroleum Industry Act of 2021, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had, earlier in the year, provided an estimate of the crude oil requirements for local refineries in the first half of 2025. This projection was aimed at ensuring effective capacity utilization of the nation’s domestic refineries through a consistent supply of crude oil.

According to the NUPRC’s forecast for the first half of 2025, the country’s crude oil production is expected to average 2,066,940 barrels per day (Bopd). Of this, the Commission estimated that local refineries would require 770,500 barrels per day (Bopd), which represents approximately 37 per cent of the projected daily production.

“This strategic initiative aligns with Nigeria’s commitment to bolstering its domestic refining capacity and ensuring the sustainability of its oil industry. The first half of 2025 is expected to witness increased synergy between local refineries and producing companies, setting the stage for a more robust and self-reliant petroleum landscape in Nigeria,” the NUPRC Chief Executive, Gbenga Komolafe said.

Stakeholders have raised concerns over the potential abandonment of the Naira-for-Crude policy, especially given that the government is aware of the projected crude oil allocation requirements. Furthermore, the claim of insufficient crude oil for domestic consumption is questionable, considering the clear provisions and guidelines established under the Domestic Crude Supply Obligation (DCSO) by NUPRC. The DCSO is a regulatory framework requiring oil-producing companies in Nigeria to allocate a portion of their crude oil production for domestic refining. This provision ensures a steady supply of feedstock to local refineries, bolsters national energy security, and aligns with Section 109 of the Petroleum Industry Act (PIA) 2021.

Introduced to guarantee a continuous supply of crude oil to domestic refineries, the DCSO aims to reduce Nigeria’s reliance on imported refined petroleum products, enhance local refining capacity, promote the growth of the downstream sector, and stabilise the domestic market. The NUPRC is tasked with enforcing this obligation. The allocation of crude oil for local consumption under the DCSO is determined through a mathematical model that considers factors such as the National Domestic Crude Supply Requirement (DCSRn), the company’s production forecast (Prodi), the national production forecast (Prodn), the company’s Technical Allowable Rate (TARI), and the national Technical Allowable Rate (TARn). For Joint Ventures (JVs), the model is adjusted based on the equity participation of each partner.

Each year, the NUPRC sets the percentage of crude oil allocated for domestic supply based on refining capacity, market demand, and government policy directives. Operators are notified of their obligations under the DCSO biannually, typically on January 1 and July 1. Although the Commission is not responsible for setting the price of crude oil supplied to the domestic market—since upstream activities operate under a deregulated pricing framework as outlined in Section 109 of the Petroleum Industry Act (PIA)—it does ensure that pricing remains fair and reasonable. According to the PIA, pricing is to be determined on a willing buyer, willing seller basis. However, to maintain transparency and fairness, the Commission requires producers and refiners to submit their monthly cargo pricing offers to the Commission.

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The provision further stipulates that the pricing of domestic crude oil must align with Section 109 of the PIA 2021 and be based on international benchmarks. Adjustments may be made for factors such as logistics, quality differentials, and regulatory requirements. While the pricing operates on a willing buyer, willing seller basis, in cases of pricing disputes, the parties involved must bring the matter to the NUPRC for resolution. The provision also allows oil companies to export any remaining crude oil after fulfilling their DCSO obligations.

Sources suggest that the unsustainability of the policy is largely linked to several crude-backed loan commitments undertaken by the Nigerian National Petroleum Company (NNPC) Limited, among other factors, which have significantly contributed to the policy’s challenges. The NNPCL’s involvement in crude-backed loan commitments dates to 2019, with a total estimated amount of approximately $22.465 billion in loans to be settled. These agreements include a $750 million vendor financing programme and a $1.5 billion agreement, which expired in May 2023 and November 2024, respectively. Additionally, there is a $3.3 billion emergency crude repayment loan, secured in August 2023 and underwritten by Afreximbank through Project Gazelle Funding Ltd (PGFL), a special purpose vehicle (SPV) incorporated in the Bahamas. This loan was financed upfront by Afreximbank, Oando Plc, and Sahara Energy.

Other notable commitments include a $1 billion crude-backed loan issued during liquidity constraints, a $2 billion loan for Project Leopard, and a $7.5 billion loan for Project Gazelle II, all of which are scheduled for full repayment in January 2029 and April 2034, respectively. Further, NNPCL has other significant loan obligations, such as a $3 billion financing deal for NLNG Train 7, which matures in May 2029; a $1 billion loan for Project Eagle, due in June 2025; and a $300 million loan for Project Brogue, due in January 2027. Additionally, Project Bison—a $1.04 billion credit facility obtained by NNPCL—will mature in December 2026, while the $1 billion Project Yield is set to mature in June 2029. The company also has a $75 million offtake financing arrangement, which is due in October 2029.

There are ongoing discussions within the federal government regarding a new forward sale agreement, which is expected to extend until 2034. This proposed deal is largely driven by Nigeria’s urgent need to settle the Central Bank of Nigeria’s (CBN) outstanding obligations, including $3.2 billion, with $1.2 billion of this amount due in Eurobond yields in 2025. Given the significant financial commitments of both the NNPCL and the country—largely denominated in dollars—stakeholders argue that it is economically illogical for crude oil, which is priced in dollars on the international market, to be sold in naira. The Chief Executive Officer of the Major Energies Marketers Association of Nigeria (MEMAN), Clemet Isong, contended that the forward sales agreements entered into by the NNPCL have resulted in a reduction of the volume of crude oil allocated for domestic consumption.

“You cannot sell what you don’t have. There is no quota set aside for domestic consumption again because we do not have it. Set aside from who? From your own or from the IOC’s own? From who’s own? You don’t have; it’s just not there,” he said.

Isong, who has over 40 years of experience in Nigeria’s oil and gas sector, explained that for such a policy to be both effective and efficient, the country must significantly increase its crude oil production capacity to a level well beyond its current requirements. He further pointed out that, given the NNPC’s heavy debt burden, every dollar earned becomes crucial for debt repayment and ensuring the company’s survival. As a result, the allocation of crude oil for domestic consumption could be significantly impacted.

Implications of halting policy

The future of the policy—whether it continues or is suspended—has sparked a divide among stakeholders and economists. Some argue that the policy is heading in the right direction, while others view it as a potential disruptor to the country’s economic stability. Meanwhile, some critics attribute the situation to policymakers selectively favouring regulations or laws that align with their interests at any given time. From the perspective of those in favour of the policy, its discontinuation could have significant macroeconomic consequences. They fear that suspending the policy may place additional demand pressure on the foreign exchange market, potentially destabilising the prices of commodities that have been gradually stabilising.

Dr. Muda Yusuf, an economist and Chief Executive of the Center for the Promotion of Private Enterprise (CPPE), warned that halting the Naira-for-Crude policy would be a “disturbing development” as it would fundamentally alter the dynamics of petroleum product pricing. “It will significantly change the dynamics of domestic petroleum products pricing. The sustainability of the widely celebrated deceleration of petroleum products prices is now evidently at risk. We may see a reversal of the trend.

“There are other macroeconomic implications. For instance, the demand pressure on the forex market would be elevated, resulting in an exchange rate depreciation scenario. The foreign reserves may come under pressure. All of these could result in adverse macroeconomic outcomes with profound implications for investors’ confidence,” Yusuf warned.

Industry analyst Mayowa Sodipo argued that the question of whether to continue the Naira-for-Crude policy should never have arisen for several reasons. He pointed out that the policy has led to a reduction in petrol prices, fostering greater competition in the market. Furthermore, he noted that it has strengthened the Naira on the international market, as refiners no longer need to use foreign currency to purchase crude oil for their refineries.

Prof Omowumi Iledare, an expert in petroleum economics at the Emmanuel Egbogah Foundation in Abuja, explained the benefits of the policy, stating that it fosters an environment for economic expansion. “One you are thinking of the likelihood of expanded economic outfit in the economy; secondly you are thinking in terms of increasing job creation because now you are using your naira, which is the currency that you are going to use to recover the product that you are selling. It is even to government’s benefit that comes with the naira purchase of crude because it is going to increase the country’s revenue because tax will be taken on the production of the crude that they are using in the domestic economy and the influence of fluctuation in foreign exchange will be diminished,” Prof Iledare explained, adding that “also, the royalty on the oil production for the local refinery will be paid in naira.”

The emeritus professor further argued that the policy helps the Central Bank manage money supply in the economy, as the pressure on the exchange rate often stems from the demand for foreign exchange to import petroleum products. However, he acknowledged that there should be concerns, as this could potentially impact the country’s foreign reserves. He described the policy as “novel” and pointed to other countries that have successfully implemented similar measures. For example, India and China have used their local currencies to conduct international transactions within their own borders, and it has proven successful for them.

“Nigeria would have been the poster child in Africa where we begin to establish the need to use local currency to pay for factor of production; but now we are backing out because there are perhaps certain (and I might be wrong) certain individuals that in the short run seems to be affected. Again, perhaps the NNPCL might be losing the market share in the downstream of wholesale market structure because they may be thinking that the crude oil being sold to Dangote Refinery in naira is increasing its competitive advantage,” Prof Iledare argued.

However, the professor explained that market competition and the in terdependence on commodity pricing significantly influence the market dynamics. He emphasised that this is why industry regulators must advocate for all participants, including other local refiners and consumers. Nonetheless, he stressed the importance of understanding the fundamental workings of the market. On the other hand, stakeholders who advocate for discontinuing the policy often point to Venezuela’s failed attempt in the early 2000s to replace the dollar with its local currency for oil transactions. They argue that the effects of this policy contributed to severe economic instability in the country. These stakeholders caution that Nigeria must proceed with care and learn from historical precedents, as policies that disrupt established international trade norms without adequate safeguards can have unintended consequences.

Meanwhile, some players, such as the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), argue that the Naira-for-Crude transaction framework presents significant risks. They warn that it could destabilise Nigeria’s foreign exchange system and deter foreign direct investment (FDI). Additionally, they contend that the policy could exacerbate the volatility of the Naira against other international currencies.

Supporting its position, DAPPMAN argued that crude oil transactions are traditionally conducted in dollars due to the currency’s stability and global acceptability. They warned that, given the weakened state of the Naira, continuing the policy could alienate trade partners and investors who rely on the predictability and stability of the dollar. The Executive Secretary, Olufemi Adewole, cautioned that failing to align with the international standard of conducting crude oil transactions in dollars could isolate Nigeria from global markets, reducing trade opportunities and discouraging investment inflows.

He further explained that, given the naira’s instability—driven by inflationary pressures and fluctuating exchange rates—tying crude oil transactions to the Naira could exacerbate these issues. “The naira has experienced significant fluctuations over the years, driven by inflation and exchange rate instability. If crude oil transactions are tied to the Naira, these problems will only worsen, potentially triggering capital flight and causing foreign investors to seek alternative markets. This would negatively impact Nigeria’s economic growth, the sustainability of the sector, and the efficiency of the oil and gas value chain,” Adewole stated. He emphasised the need for policies that recognise the unique nature of the oil and gas sector to ensure the country remains competitive on the global stage.

Further outlining the reasons for DAPPMAN’s support for the discontinuation of the policy, Adewole argued that Naira-for-crude transactions could place an unsustainable strain on Nigeria’s foreign exchange reserves. He warned that the Central Bank of Nigeria (CBN) might struggle to maintain currency stability amid insufficient dollar inflows, which would only add to the country’s economic challenges.

“It is almost inevitable that implementing this policy could further deplete Nigeria’s foreign exchange reserves,” Adewole warned. “The CBN may find it increasingly difficult to stabilise the Naira due to inadequate dollar inflows. Since oil transactions have historically been a primary source of foreign exchange, disrupting this mechanism will likely intensify economic pressures.”

Despite this, DAPPMAN stressed the need to balance economic sovereignty with global market realities. “DAPPMAN supports all efforts and policies aimed at strengthening the Naira. However, these strategies must drive substantial economic reforms that address the root causes of the Naira’s weakness. Nigeria must find a balance between national interests and global market dynamics. Economic policies are most effective when they focus on long-term sustainability rather than being shaped by sector-specific demands,” he explained.

Reiterating the need for policies that align with international market standards while ensuring long-term economic stability, Adewole cautioned that the future of Nigeria’s oil and gas sector hinges on pragmatic policies that promote investment, foster transparent competition, and safeguard the country’s foreign exchange reserves. “By creating an environment conducive to private-sector participation, Nigeria can achieve a sustainable energy sector that benefits the broader economy,” he added.

On the other hand, Prof Omowumi Iledare emphasised that the price of petroleum products is directly tied to the price of crude oil. He argued that pricing crude oil in local currency could mitigate the impact of exchange rate fluctuations on petroleum product prices. “So, if crude is bought in dollars but petroleum products are sold in Naira, consumers would bear a double burden when crude prices rise,” he explained. “If the local currency is devalued, the final product’s price will also increase, leading to inflationary pressures. Because crude oil is a critical factor of production, changes in its price significantly affect the broader economy, which creates a dilemma — or even a trilemma — in terms of economic stability,” Prof Iledare concluded.

Purpose achieved or not?

Experts remain divided on the unfolding situation. While some warn of severe consequences if the policy is terminated, especially with a halt in local sales, others argue that the market may not be significantly impacted, given that the sector is deregulated. A recent market intelligence survey conducted by The Nation revealed that the savings from the retail price of petrol in the final month of the Naira-for-crude policy exceeded N113 billion monthly, or approximately N3.8 billion daily. This has provided more disposable income for households. The analysis, based on the average daily petrol consumption of 50 million litres, as indicated by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), also considered price changes by the two main petrol suppliers—Dangote Petroleum Refinery and Nigerian National Petroleum Corporation (NNPC) Limited. Dangote Refinery, which had been selling petrol at N925 per litre, reduced its ex-depot price twice last month, bringing the retail pump price down to N860 per litre. Following the competitive price cut, NNPC, which had been selling petrol at N945 per litre, also lowered its retail price to N860 per litre.

Dr. Yusuf praised the pricing efficiency as a positive development for Nigerians, noting that it has freed up more disposable income for households. He highlighted that this is one of the significant benefits of deregulation. While Yusuf acknowledged that global factors contribute to price reductions, he also pointed out that domestic factors have played a role, particularly the removal of several dysfunctional policies within the oil and gas sector and the foreign exchange market.

“These policies are bringing some efficiency into the market system, and it’s beginning to restore normalcy to the overall economic management. It’s a welcome development. Many of us commend this and hope that the trend continues. Closely related to this is the fact that we’re beginning to see stability in the foreign exchange market. This is another remarkable development that is positively impacting the declining and stabilizing prices of energy, particularly petroleum products.

“So, I think the trajectory is positive, and I hope the government will continue addressing these critical issues that affect citizens’ welfare. We expect to see this progress in other sectors as well—such as cooking gas, diesel, and aviation fuel. We’d like to see deliberate policies to make these improvements happen, because energy prices and exchange rates have been two of the biggest issues we’ve faced over the past year,” Yusuf, an economist, explained.

Conflict and the days ahead

However, these gains might be lost soon. Over the weekend, the Nigerian Economic Summit Group (NESG) raised concerns over the potential cancellation of the naira-for-crude policy, warning that the move could exacerbate Nigeria’s already fragile foreign exchange (FX) pressures. The cancellation of the policy, which was originally aimed at strengthening the naira, is seen as a step backward in Nigeria’s broader foreign exchange strategy.

The Group cautioned that scrapping the initiative could lead to even more significant challenges in managing Nigeria’s forex reserves, which have already been under strain due to fluctuating oil prices and low foreign currency inflows. “This cancellation is a misstep that could exacerbate Nigeria’s already precarious forex situation,” said Tayo Aduloju, the Chief Executive Officer of NESG, adding that the move might have unintended consequences for Nigeria’s currency and oil revenue dynamics.

According to Aduloju, NESG supports the crude-for-naira initiative, if transactions align with prevailing market rates and avoid creating a hidden foreign exchange subsidy. “It solved the issue of local production needs chasing forex. Imagine a big player like Dangote constantly chasing forex every day to buy crude—this automatically increases pressure in the market, and it can be disruptive. The journey is going nowhere to help anyone. So, we encourage the committee to revisit the broad framework,” the NESG explained.

Prof Iledare, however, noted that while the policy might be politically sound, it is economically challenging and could require negotiation rather than imposition. He suggested that it might only apply to government equity oil. “The biggest challenge with the PIA is selective implementation. There’s a difference between the letter of the law and the spirit of the law. When you begin picking and choosing from the law’s provisions, you’re likely to lose the intent of the law, and that’s what I’ve observed over the three years of implementing the PIA,” said Prof Iledare in a national television interview. According to him, the issue in the sector is not necessarily regulatory, but rather with policy formulation and implementation. “There must be a competent, transparent, and apolitical policy institution to formulate policies. The naira-for-crude policy could have been analysed with well-developed benefits, concerns, and a proper cost-benefit analysis,” he said.

The professor of petroleum economics stressed that understanding the price trend of petroleum products is crucial, as they are directly tied to crude oil prices. “If crude oil prices are volatile, petroleum product prices will also fluctuate. What we’ve done by attempting to use our local currency for crude oil transactions is like the passage of the local content law, which is working today. That’s why consistency and sustainability are key—it’s about ensuring access to affordable, available, and sustainable energy. This is the only way to grow the economy,” he stated.

He argued that policymakers must balance short-term challenges with long-term sustainability. “Some decisions require staying the course until optimal benefits are realised. Challenges bring opportunities, and that’s why we need a decision-making process, not just ad hoc responses to current situations. The naira-for-crude policy has only been in place for six months, and we haven’t even allowed it to fully play out so we can see its extreme benefits.”

April 24, 2025
FX reforms, interest rate hike trigger Fitch Ratings credit upgrade

Global credit rating agency Fitch Ratings has upgraded Nigeria’s credit rating to B, citing a wave of economic reforms that have bolstered policy credibility and eased near-term threats to macroeconomic stability. At the heart of these reforms is the Central Bank of Nigeria’s (CBN) push to formalise foreign exchange activities and strengthen monetary policy transmission. This has been achieved through a mix of policy rate hikes, prudential measures and operational tools such as open market operations—marking a clear departure from years of financial repression, writes Assistant Editor COLLINS NWEZE.

Fitch Ratings’ recent positive report on the Nigerian economy came as no surprise to stakeholders closely monitoring the bold economic reforms championed by the country’s monetary and fiscal authorities. From the unification of exchange rates to curb market arbitrage, to the rollout of an electronic FX matching platform and a new foreign exchange code aimed at enhancing transparency and efficiency, the Central Bank of Nigeria (CBN) has signalled a strong commitment to stabilising the currency. Coupled with a decisive shift towards monetary policy tightening to rein in inflation, these measures underscore the CBN’s drive toward sustainable economic growth and exchange rate stability.

Already, the latest Fitch rating moved Nigeria’s long-term foreign-currency issuer default rating (IDR) from negative to stable, meaning that the country stands a better chance of attracting foreign investment, borrow money on international markets at better interest rates, and boost investor confidence. Fitch also applauded government’s commitment to policy reforms implemented since its move to orthodox economic policies in June 2023, including exchange rate liberalisation, monetary policy tightening and steps to end deficit monetisation as well as fuel subsidies removal. “These have improved policy coherence and credibility and reduced economic distortions and near-term risks to macroeconomic stability, enhancing resilience in the context of persistent domestic challenges and heightened external risks,” the agency stated.

Sustaining FX Code/ EFEMS implementation

The apex bank recently took strategic step to enhance transparency and boost market confidence with the inauguration of the Nigeria Foreign Exchange Code (FX Code) in Abuja. The FX Code has so far ignited naira stability at both official and parallel markets. CBN Governor Olayemi Cardoso recently launched the FX Code, emphasising integrity, fairness, transparency, and efficiency as critical pillars for driving Nigeria’s economic growth and stability. He emphasized that the FX Code was built on six core principles: ethics, governance, execution, information sharing, risk management and compliance as well as confirmation and settlement processes. These principles, he explained, aligned with international standards while addressing the unique challenges within Nigeria’s foreign exchange market.

According to Cardoso, “The FX Code represents a decisive step forward, setting clear and enforceable standards for ethical conduct, transparency and good governance in our foreign exchange market. The era of opaque practices is over. The FX Code marks a new era of compliance and accountability. Under the CBN Act 2007 and BOFIA Act 2020, violations will be met with penalties and administrative actions.”

The CBN has stated that while every effort has been made to ensure that the FX Code comprehensively addresses various aspects of market conduct and practice, it is not intended to be exhaustive. Governor Cardoso also noted that the journey towards market reform is already yielding results. He stated, “The year 2024 was marked by structural reforms that sought to return the naira to a freely determined market price and ease volatility as several distortions were removed from the market.”

Beyond the foreign exchange market, the FX Code forms part of the CBN’s renewed focus on compliance across the financial sector. Its six guiding principles, alongside 52 sub-principles, were designed to become the benchmark for conduct across all participating institutions. Issued as a guideline for the foreign exchange market, the FX Code is backed by the authority of the CBN Act of 2007 and the Banks and Other Financial Institutions Act (BOFIA) of 2020. These legislative instruments empower the CBN to establish and enforce directives regarding the standards financial institutions must follow in conducting foreign exchange business in Nigeria. The FX Code, therefore, serves as an official directive that all market participants are expected to observe in their operations.

Besides FX Code, the apex bank also introduced the Electronic Foreign Exchange Matching System (EFEMS), which has proven effective in other economies in enhancing the functionality of the foreign exchange market. The EFEMS was meant to check forex market distortions, eliminate speculative activities and instil transparency. The EFEMS, which is commonplace in developed and developing markets, offers real-time information on currency rates, trading volumes and market activity.

Understanding monetary policy decisions

In February, the apex bank retained its benchmark lending rate at 27.50 per cent, marking the first time it has opted to maintain the rate in almost three years. CBN had been persistent in raising the lending rates since March 2022 when the rate stood at 11.5 per cent. The Monetary Policy Committee (MPC) of the bank stated that its unanimous decision was influenced by recent macroeconomic developments, which it noted with satisfaction. These include stability in the foreign exchange market, leading to an appreciation of the exchange rate, and the gradual moderation in petrol prices, both of which are expected to positively impact price dynamics in the near to medium term. The benchmark rate is the standard interest rate set by central banks, used to guide lending rates and influence economic activities, inflation, and financial stability. The central bank also retained the asymmetric corridor around the MPR at +500 to -100 basis points.

Cardoso said the committee voted to retain the Cash Reserve Ratio (CRR) at 50 per cent for commercial banks, while maintaining the CRR of merchant banks at 16 per cent. The committee also voted to retain the liquidity ratio at 30 per cent. The CBN has continued tightening monetary policy to curb inflation, implementing a series of interest rate hikes throughout 2024. These decisions were aimed at stabilising the economy amid persistent price pressures. In 2024, the bank raised rates six times, delivering a cumulative increase of 875 basis points. “The committee highlighted the benefits of the improvements in the external sector to exchange rate stability, including the convergence of race between the Nigeria foreign exchange market and the Bureau to change and urge the bank to relent, not to relent in its effort to boost market liquidity,” Cardoso said.

Other highlights of the ratings upgrade

Fitch expects the macroeconomic policy stance to support the move to lower inflation and sustain improvements in the foreign exchange (FX) market’s operation, though it will likely remain much higher than rating peers. It also expects “a continued reduction in external vulnerabilities through further easing of domestic FC supply constraints, while renewed energy sector reforms should help sustain current account surpluses.”

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It added: “Greater formalisation of FX activity including the Central Bank of Nigeria’s (CBN) recent introduction of an electronic FX matching platform and a new FX code to enhance transparency and efficiency, along with monetary policy tightening, has led to a greater rise in FX liquidity and general stability in the FX market after a 40% depreciation in 2024, closing the spread between the official and parallel exchange rates.

“Net official FX inflows through the CBN and autonomous sources rose by about 89% in 4Q24, compared to an 8% rise in 4Q23. We expect continued formalisation of FX activity to support the exchange rate, although we anticipate modest depreciation in the short term. The CBN has tightened monetary conditions through a combination of policy rate hikes to 27.5% (up 875bp since February 2024) and use of prudential and operational tools such as open market operations (at rates closely aligned to the MPR) to strengthen monetary policy transmission after years of financial repression.”

Reacting to the Fitch rating, Oladele Adeoye, Chief Rating Officer at DataPro, a Nigerian credit rating agency, said it was a positive development “in all ways.” Adeoye said it would boost investors’ confidence in Nigeria’s Eurobond as people would readily subscribe whenever it is issued. “Good rating also implies lower cost of fund. Of course, there will be inflow of foreign currency into the economy and this will give further room for the CBN to support the local currency and strengthen exchange rate,” he said.

On how the government can improve on this, Adeoye said: “Nigeria must increase productivity that can boost export and lower import. This will enhance the external reserve and improve public finance. “We need to continue to improve our revenue base, and this includes both oil and non-oil revenue.”

Registrar/Chief Executive Officer, Nigeria Institute of Credit Administration (NICA) Chartered, Prof. Chris Onalo, said the national body for credit management said the Fitch rating “means a lot.” He said he could not agree less with the agency’s rating. “It is solid, it is stable, it is progressing, and it has a future outlook,” Onalo said.

On further steps government can take on the economy, he said: “The government should focus on expanding the economy. In other words, all-inclusive economic activities. “The government should fix the infrastructural problem, because that will stimulate future ratings. It should also reduce the cost of doing business drastically. And then fix electricity and clamp down on the local insecurity, like the insurgency is becoming a thing of the past now, but pocket pickers, people that break into offices, and you can arrest that by creating avenues for job, wider job availability for people that are regarded as forgotten miscreants. The Fitch Ratings shows that the country has a stable outlook in terms of investment and that can have a positive effect on our foreign direct investments.”

Other analysts described the Fitch rating as “a significant step forward in restoring investor confidence and economic stability.” According to them, the development means an improvement in Nigeria’s creditworthiness, which could open up new opportunities for the country across several sectors. “A ‘B’ rating from Fitch is a step up, which is generally a positive sign. It means Fitch believes Nigeria’s creditworthiness has improved,” Dr. Balogun said. He explained that the upgrade could enhance Nigeria’s attractiveness to international investors. “A better credit rating makes Nigeria a more attractive place for investors. This could lead to increased foreign investment in various sectors,” he noted.

One of the major implications of the improved rating is that Nigeria may now be able to borrow at lower interest rates. The Fitch Ratings is also expected to allow the federal government to finance projects more efficiently and manage its debt burden more effectively and further send a signal to the global community that Nigeria’s economy is on a more stable footing, which could in turn boost international confidence in the country’s financial environment. Additionally, the new rating could offer Nigeria better access to international financial markets, thereby increasing funding options for both the public and private sectors.

With positive Fitch Ratings which would lead to potentially lower borrowing costs, the government could invest more in infrastructure development—roads, bridges and power plants—thereby attracting both local and international capital. Such investments would support government’s continued drive for infrastructure development and sustainable growth for the economy.

April 24, 2025
Efforts to mainstream natural medicines gaining traction

Amid a global shift toward natural healing, Nigeria is harnessing its rich traditional medicine heritage. With growing legislative backing and global interest in natural healing, the Nigerian Natural Medicine Development Agency (NNMDA) is at the forefront of efforts to legitimise, regulate and integrate traditional remedies into Nigeria’s mainstream healthcare system, reports Associate Editor ADEKUNLE YUSUF

As the global wellness movement leans increasingly towards organic and nature-based solutions, Nigeria is taking bold steps to bring its rich heritage of traditional medicine into the mainstream. At the forefront of this transformation is the Nigerian Natural Medicine Development Agency (NNMDA), which is steadily working to validate, standardise and promote natural medicine practices across the country.

From herbal teas to plant-based remedies, Nigeria boasts an extensive pharmacopeia built on centuries of indigenous knowledge. Yet, for decades, this vast resource remained underutilised, largely confined to informal settings and often dismissed in modern medical circles. That tide is now turning. With global attitudes warming towards natural health remedies and the urgent need for affordable, accessible healthcare back home, Nigeria is poised for a traditional medicine renaissance.

NNMDA’s renewed energy under the leadership of its Director-General, Prof Martins Emeje, is already drawing attention from key stakeholders, including the National Assembly. During a recent visit to the Nigerian Natural Medicine Development Agency headquarters in Lagos, the House Committee on Legislative Compliance, led by Badau Yusuf Ahmed, expressed firm support for the agency’s strategic plans to mainstream traditional medicine and create employment opportunities across all 774 local government areas in Nigeria. According to him, the House of Representatives has committed to fully backing the NNMDA’s efforts to advance natural medicine development in the country. Lawmakers, he said, believe that this initiative will not only enhance healthcare delivery but also improve access to affordable, locally sourced medications for Nigerians. They pointed out that with the right investment and support, the growth of Nigeria’s natural medicine sector could significantly reduce the nation’s reliance on imported pharmaceuticals.

Reaffirming the legislature’s commitment, Ahmed emphasised that large-scale development of natural medicine has the potential to drive substantial job creation and contribute to the economic empowerment of communities nationwide. “This move by the NNMDA to develop and promote traditional medicine is encouraging. This will reduce costs and dependence on foreign medicine. So, at the same time, this plan will help our teeming youths by creating job opportunities in our communities across the country.

“The NNMDA DG has informed us of its plans, and the only thing is to encourage him to formalise everything in writing and submit it to us. We’ll take it from there and put it into action,” Ahmed said during the committee’s visit.

Under the visionary leadership of its Director-General, the NNMDA has launched a series of strategic initiatives aimed at repositioning natural medicine as a credible, accessible and scientifically backed option for healthcare delivery in Nigeria. With a mandate to research, develop, document, and promote the nation’s natural medicine resources, the agency is bridging the gap between traditional knowledge and modern science. “Our mission is simple yet profound — to mainstream traditional medicine in Nigeria by ensuring it is safe, effective and globally competitive. We are committed to evidence-based research that not only validates indigenous remedies but integrates them into the national health system,” said Prof Emeje.

Indeed, NNMDA’s blueprint for reform is comprehensive. With a clear focus on research, validation, capacity building and policy integration, the agency aims to ensure that traditional remedies are safe, standardised and effective. More than this, Emeje always enthuses that the agency envisions a Nigeria where the country’s vast biodiversity is not only harnessed for improved healthcare delivery but also becomes a pillar of economic growth. “Our goal is to liberate Nigerians from the overdependence on imported medicines and reclaim ownership of our indigenous knowledge. With adequate support and funding, Nigeria can lead the herbal medicine market in Africa and become a net exporter of high-quality, scientifically backed products.”

To achieve the ambitious goal, the agency is currently seeking N2 billion in funding to operationalise its plan. One key element of this is the deployment of 15,480 trained personnel across the nation’s 774 local government areas. These community-based teams would identify, document and develop natural remedies unique to each region—a model that could revolutionise disease management and prevention nationwide. “Each community has unique flora, fauna, and minerals. These should be explored for diseases peculiar to those communities,” Emeje explained.

Indeed, the concept is rooted in science. Diseases, according to the NNMDA, often have environmental factors. Therefore, the local ecosystem is the best place to seek natural solutions. The novel plan by the NNMDA aligns with the World Health Organisation’s (WHO) push for countries to integrate traditional medicine into their national healthcare frameworks. To ensure quality and safety, the NNMDA boss said his agency is working on a national herbal pharmacopoeia—a scientifically validated database of Nigerian medicinal plants and their uses. A digital pharmaceutical information system and a knowledge repository of traditional healing practices are also underway, designed to give future generations of Nigerians access to validated, regulated indigenous medical knowledge.

The agency is also conducting clinical trials on several herbal formulations to tackle common and chronic ailments, including malaria, diabetes, hypertension, sickle cell anaemia, urinary tract infections, arthritis, and various skin conditions. Such trials are essential not only for domestic approval but also for international acceptance. According to Emeje, NNMDA’s strategic goals have also attracted partnerships, including Memorandum of Understanding (MoUs) with strategic health and research organisations to scale up research and commercialisation efforts. The NNMDA DG said every partnership his agency entered into is a deliberate agenda that aims to leverage human capacity to broaden the reach of NNMDA’s research outcomes and initiatives, contributing to the growth and global recognition of Nigeria’s natural medicine research efforts.

Moreover, policy reforms now require traditional medicine practitioners to undergo certified training, ensuring professionalism, safety and standardisation. “Without proper training and certification, we cannot guarantee that patients are getting safe and effective treatments,” Emeje said. “We’re formalising the sector—this is no longer an informal, word-of-mouth trade.”

Several herbal products formulated and launched

In another significant step toward improving public health and strengthening the country’s traditional medicine sector, NNMDA has launched a new line of indigenous herbal products. These formulations are aimed at tackling some of Nigeria’s most pressing health challenges, including cholera, antimicrobial resistance (AMR), snakebites and livestock diseases. Developed through a blend of time-tested traditional knowledge and modern scientific research, the products underscore the agency’s commitment to making natural medicine a credible and accessible component of mainstream healthcare.

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Among the flagship innovations is a herbal remedy specifically designed to combat cholera—a waterborne disease that continues to pose a serious threat in many parts of Nigeria. The formulation, derived from locally sourced medicinal plants known for their antibacterial and anti-diarrheal properties, was developed in collaboration with traditional healers and scientific researchers to ensure its safety and efficacy. This marks a critical advancement in the use of natural medicine for combating endemic diseases.

In addition to cholera, the agency is addressing the global threat of antimicrobial resistance (AMR) by introducing herbal products with potent antimicrobial properties. These natural formulations are intended to serve as alternatives to conventional antibiotics, particularly in rural and underserved communities where access to modern healthcare remains limited. By promoting the responsible use of traditional remedies, the agency aims to reduce dependence on synthetic antibiotics, which is one of the major drivers of resistance.

Beyond the health impact, the initiative has far-reaching socio-economic benefits. NNMDA is deliberately involving local communities by sourcing raw materials from Nigerian farmers and working closely with traditional herbalists. This inclusive approach not only ensures authenticity in the production process but also stimulates rural economies, creates jobs, and supports sustainable agricultural practices. It reflects a broader strategy to integrate healthcare improvement with economic empowerment.

The commercialisation of these herbal products is a key component of NNMDA’s long-term vision. The agency is currently forging partnerships with local distributors and international pharmaceutical firms to scale up production and extend the reach of these remedies beyond Nigeria’s borders. The goal is to make scientifically validated traditional medicines widely available, particularly in remote areas where conventional healthcare services are scarce. With the right investment and regulatory support, these products could position Nigeria as a leader in Africa’s traditional medicine market.

The agency’s work also extends to other critical health concerns. In regions like Gombe State, where snakebites remain a significant threat, NNMDA has developed a herbal antidote using local plant resources. In collaboration with partners from India and the Netherlands, it is also developing herbal treatments for livestock diseases, addressing a major concern for the country’s agricultural sector. To fast-track the integration of these remedies into the national healthcare system, NNMDA is actively engaging with regulatory bodies, including the National Agency for Food and Drug Administration and Control (NAFDAC). Several products are already in advanced stages of development, pending regulatory approval for clinical trials and mass production, with the agency remaining committed to expanding its portfolio of indigenous medicines and new products set for release later this year.

Getting the much-need legislative backing

The House of Representative members have not just expressed moral support—they’ve begun backing their endorsement with legislative action. Months before their visit to NNMDA, lawmakers had adopted a motion sponsored by Emmanuel Ukpong-Udo of Akwa Ibom State, urging a national shift in mindset toward natural medicine. Ukpong-Udo noted that globally, nature-based remedies are becoming mainstream and that Nigeria should not be left behind. He described traditional medicine as the most accessible and preferred health solution in many communities and cautioned against continued subservience to imported pharmaceutical products.

Following this, the House mandated its Committees on Healthcare Services and Science and Technology to work with stakeholders and the NNMDA to strategise on the full integration of traditional medicine into Nigeria’s healthcare framework. Their tasks include creating awareness, boosting local confidence in natural remedies, and encouraging local innovation in pharmaceutical sciences. “We are committed to ensuring that NNMDA’s goals are not just dreams on paper but realities that improve lives and reduce our health sector’s financial burden,” Ahmed reaffirmed.

According to the WHO, over 80 per cent of the global population uses traditional medicine in some form. The global herbal medicine market is projected to surpass $600 billion by 2033, with Africa’s share expected to rise significantly due to increasing interest in biodiversity and natural health. For Nigeria—Africa’s most populous country with an estimated 10,000 medicinal plant species—this presents a unique opportunity. If properly harnessed, traditional medicine could become a significant foreign exchange earner, much like cocoa or oil once were. Emeje believes Nigeria is sitting on a goldmine. With the right investments, he says, the country could be exporting medicinal plants and finished herbal products within a year. More importantly, it could bring healthcare to the doorsteps of millions who currently have limited or no access to modern medicine.

Backed by legislation, partnerships, and funding, NNMDA’s vision is rapidly becoming reality—driving down healthcare costs, creating jobs, and restoring pride in Nigeria’s indigenous knowledge, while positioning the country as a rising force in the global natural medicine economy.

April 21, 2025
CBN targets product quality upgrade, FX inflows in renewed export drive

In a bold effort to strengthen Nigeria’s non-oil exports and boost the country’s standing in global trade, the Central Bank of Nigeria (CBN) and the Bankers’ Committee are rolling out strategic interventions to upgrade the quality, packaging and competitiveness of locally manufactured products. Through targeted investments in technology, aggressive capacity building for manufacturers and deeper collaboration between banks and producers, the new focus is to transform made-in-Nigeria goods into globally competitive brands. Backed by reform-driven policies to eliminate structural barriers, the initiative aims to boost confidence in Nigerian exports, unlock fresh foreign exchange inflows and strengthen the country’s long-term economic resilience, writes Assistant Editor COLLINS NWEZE

Attracting international buyers for export products requires a multifaceted strategy that encompasses thoughtful product design, high-quality packaging, and stringent quality control measures—making the products highly competitive and appealing in global markets. Establishing a strong digital footprint, participating in international trade fairs, and engaging with key stakeholders such as banks, regulatory bodies, and policymakers can significantly enhance manufacturers’ access to global buyers. When these efforts succeed, they lead to increased foreign exchange inflows from export earnings, ultimately contributing to a stronger exchange rate and the steady growth of the nation’s foreign reserves.

Experts agree that increased foreign exchange (forex) inflows bring significant benefits to the domestic economy and align with the Central Bank of Nigeria’s (CBN) efforts to ensure price and exchange rate stability. Under the leadership of Governor Olayemi Cardoso, the apex bank has intensified efforts to boost forex inflows and ensure accessibility for businesses that rely on foreign exchange for their operations. A key quick win in this drive is enhancing the global competitiveness of Nigerian export products—through improved standards, branding, and market access.

Additionally, the CBN is advancing several initiatives to attract forex, including boosting diaspora remittances through innovative product offerings, licensing new International Money Transfer Operators (IMTOs), implementing the willing buyer–willing seller FX model, and ensuring timely naira liquidity for IMTOs. These measures are streamlining forex inflow channels and positioning the economy for stronger, more sustainable growth.

Diaspora remittances to Nigeria—estimated at $23 billion annually—remain a vital and reliable source of foreign exchange for the domestic economy. In addition to this, the CBN is exploring other sources and implementing policies aimed at sustaining and increasing dollar inflows. The CBN’s strategic initiatives have contributed to steady growth in remittance volumes, in line with its ambitious target to double formal remittance receipts within a year. Remittance inflows are expected to rise further as the CBN continues to restore public confidence in the foreign exchange market, foster a stable and inclusive banking system, and promote price stability—all of which are critical to long-term economic growth.

Director of Trading at Verto, Charlie Bird, noted that Nigeria’s dollar liquidity dynamics have become more balanced, allowing foreign investors and international airlines to repatriate funds with greater ease. Speaking at the Cordros Asset Management seminar titled “The Naira Playbook,” Bird described Nigeria as the new darling of foreign investors—thanks to improved dollar liquidity driven by the Central Bank of Nigeria’s (CBN) ongoing reforms.

As part of these reforms, the CBN under Governor Cardoso recently introduced two innovative financial products aimed at serving Nigerians in the diaspora and boosting remittance inflows. These initiatives, alongside the licensing of new International Money Transfer Operators (IMTOs), implementation of the willing buyer–willing seller FX model, and provision of timely naira liquidity to IMTOs, are part of broader efforts to strengthen the foreign exchange market and support economic stability.

Upgrading product quality for export

The Central Bank of Nigeria, in collaboration with the Bankers’ Committee, is driving initiatives aimed at improving the quality and competitiveness of Nigerian products in global markets. According to the CBN, Nigerian manufacturers can only thrive internationally if their products meet the quality, packaging and branding standards required to compete effectively with global counterparts. While many Nigerian products still fall short of these standards, the banking sector is expected to play a pivotal role in helping businesses enhance their global competitiveness. This includes financing improvements in production, packaging and branding. To increase the visibility and appeal of locally made goods and services abroad, there is a pressing need for better product presentation and stronger market positioning. With the right support, Nigerian businesses can scale up to meet international demand and unlock new export opportunities.

Speaking during a Bankers’ Committee meeting in Lagos, the Director of the Consumer Protection and Financial Services Department at the Central Bank of Nigeria (CBN), Dr. Aisha Olatinwo, stated that with ongoing support from the apex bank and commercial banks, local businesses are better positioned to thrive in global markets. She, however, acknowledged that several challenges continue to hinder the growth of Nigerian-made goods. Represented by the Deputy Director of the department, Nelson Amuwa, Dr. Olatinwo noted that the CBN is actively working to address constraints related to product quality, packaging, branding, and global market readiness—factors that limit the competitiveness of locally produced goods and services.

Echoing her views, the Executive Chairman of the Lagos State Internal Revenue Service (LIRS), Ayodele Subair, emphasised the crucial role of the financial sector in supporting the sustainability and long-term success of Nigerian businesses. He said: “The Bankers’ Committee plays a vital role in facilitating financial inclusion and driving Made-in-Nigeria products. By working together, stakeholders can unlock the full potential of Nigeria’s financial system and promote export diversification and support local businesses.”

While delivering his keynote address, Dr. Bamidele Ayemibo emphasised the need for Nigerian manufacturers to prioritise product quality, modern packaging, and strong branding. According to him, these elements are essential to enhancing the competitiveness of Nigerian products in both regional and international markets. Raising some posers, Ayemibo said: “From manufacturing to fashion, to technology and to the industry, our ability to compete depends on how well we can align to embrace productivity and deliver consistent, high-quality products that command respect in global markets.

“By deepening these partnerships, we can identify and dismantle barriers to growth, encourage innovation, and scale up the support structures that enable enterprises to thrive in competitive environments. The Nigerian banking sector remains a critical industrial foundation to build Nigerian products, opportunity-building initiatives, and investment technology. Banks are well-positioned to support businesses in enhancing their competitive opportunities,” he stressed.

Nigerian manufacturers, he said, “should ensure that the products are attractive and suitable for specific markets. And utilise packaging as a branding tool. Packaging can serve as a critical component of branding. Nigeria should design packaging that not only protects the product but also tells the story and resonates with the consumer.”

Also speaking at the event, the President of the Manufacturers Association of Nigeria (MAN), Francis Meshioye, described the town hall meeting as both timely and necessary. He, however, lamented the increasingly harsh operating environment for the manufacturing sector. According to Meshioye, manufacturers spent a staggering N1.3 trillion on the cost of funds in 2024 alone. He decried the prevailing interest rates—ranging between 35 and 37 per cent—as a major disincentive to business growth and sustainability.

He urged the CBN and the Bankers’ Committee to introduce long-term financing options tailored for manufacturers, with more favourable terms that support rather than stifle industrial productivity. “It is critical at this point for the CBN and the Bankers Committee to fund production at cheaper rates, and also fund backward integration, amongst others. That’s only to cut down the excess amount expended on cost of funds which is adversely affecting production in the country.”

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X-raying the revised IMTO guidelines

The Central Bank of Nigeria recently released revised guidelines for International Money Transfer Services (IMTS) in Nigeria, marking a significant shift in how International Money Transfer Operators (IMTOs) operate within the country. These updated guidelines reflect the CBN’s ongoing commitment to enhancing transparency, boosting operational efficiency, and increasing diaspora remittance inflows through formal channels.

In a related circular titled “New Measures to Enhance Local Currency Liquidity for Settlement of Diaspora Remittances,” the apex bank reiterated its dedication to strengthening Nigeria’s foreign exchange market infrastructure. The circular outlines key initiatives designed to streamline remittance flows, including providing licensed IMTOs with direct access to naira liquidity from the CBN—thereby enabling the timely and seamless disbursement of remittances to beneficiaries.

In a report analysing the new circular, analysts at Duale, Ovia & Alex-Adedipe, a specialised law firm with experts in key areas of practice, explained that the revised guidelines now allow International Money Transfer Operators (IMTOs) to conduct the payout of foreign remittances through agents, designated as Authorised Dealer Banks (ADBs). The guidelines stipulate that IMTOs must enter into formal agreements with ADBs, clearly outlining the terms and conditions of their partnership. Additionally, IMTOs are required to notify the Central Bank of Nigeria whenever they appoint a new ADB.

Furthermore, the guidelines specify that IMTOs must receive foreign remittances in a designated account held with the ADB. This account, the report clarified, must be separate from other accounts maintained by the IMTO. The guidelines also mandate that ADBs and IMTOs disburse the proceeds of foreign remittances to beneficiaries in naira.

To ensure the effective implementation of the new circular and to promote transparency and accountability in Nigeria’s foreign exchange market, the CBN has established that transactions confirmed before noon on any given trading day will be eligible for same-day settlement. This measure is designed to expedite the process for all stakeholders, including remittance beneficiaries. The apex bank further directed that foreign exchange payments can be made either through a bank account with the Authorised Dealer Bank (ADB) or in cash, with the condition that cash withdrawals do not exceed $200. If a beneficiary does not have an account with the IMTO’s ADB, the ADB is required to credit the beneficiary’s account at another bank. Notably, the guidelines also prohibit IMTOs from purchasing foreign exchange from the domestic market to settle funds for their customers. The key significance of the circular lies in the introduction of measures that enhance IMTOs’ access to naira liquidity, thereby facilitating the timely settlement of diaspora remittances.

Under the revised guidelines, eligible IMTOs can now directly access the Central Bank of Nigeria (CBN) window or use their Authorised Dealer Banks (ADBs) to execute transactions involving the sale of foreign exchange in the Nigerian market. This change allows IMTOs to purchase naira directly from the CBN or through their ADBs for settling remittances, significantly improving local currency liquidity. This marks a notable departure from the previous guidelines, as highlighted earlier. Foreign exchange transactions will now be converted at the prevailing Nigerian Autonomous Foreign Exchange Market (NAFEM) rates, as referenced by a recognized market benchmark.

Additionally, both IMTOs and ADBs are required to submit daily regulatory returns to the CBN, detailing all relevant information on the sources of funds. Eligible IMTOs must also confirm their ADBs and provide standard settlement instructions to ensure the smooth implementation of these new measures. Analysts have noted that this circular represents a significant step forward in enhancing foreign exchange liquidity in Nigeria. By granting IMTOs direct access to naira through the CBN window or ADBs and imposing strict regulatory and reporting requirements, the CBN aims to streamline remittance flows, ensuring that funds are processed swiftly and securely through official channels.

Diaspora remittances gain more attention

In a bid to boost diaspora remittances and support the stability of the naira, the Central Bank of Nigeria recently introduced two new financial products designed specifically for Nigerians living abroad. The Non-Resident Nigerian Ordinary Account and the Non-Resident Nigerian Investment Account are intended to streamline remittance processes, encourage investment, and promote financial inclusion among Nigerians in the diaspora. It said, “The Central Bank of Nigeria is pleased to inform the general public of the introduction of the Non-Resident Nigerian Ordinary Account and Non-Resident Nigerian Investment Account targeted at Nigerians in diaspora.”

The initiative is also expected to provide a secure and efficient platform for managing funds and investing in Nigeria’s financial markets. Since the beginning of this year, eligible Non-Resident Nigerians (NRNs) have been given the opportunity to open any of the newly introduced Non-Resident Nigerian accounts. The Non-Resident Nigerian Ordinary Account is designed to facilitate remittances by enabling non-resident Nigerians to send foreign earnings into Nigeria. It also allows account holders to manage funds in either foreign currency or naira. This account supports deposits from sources such as salaries, allowances, and dividends, while also catering to expenditures on family maintenance, education and healthcare.

In contrast, the Non-Resident Nigerian Investment Account provides NRNs with the opportunity to invest in Nigeria’s financial markets. This includes a range of investment options such as foreign currency-denominated bonds, fixed deposits, local equities, government securities and mortgage products. The CBN explained that both accounts offer currency flexibility, allowing holders to maintain balances in either foreign currency or naira. Account holders will also be able to convert funds between the two currencies at prevailing exchange rates through authorised dealers.

The Non-Resident Nigerian Investment Account, in particular, is designed to promote investment in Nigeria’s financial instruments, such as the Diaspora Bond, and encourage active participation in the country’s economic development. The CBN stated that the introduction of these accounts aims to harness the economic potential of Nigerians in the diaspora by increasing remittances and fostering investments in critical sectors. In addition to these initiatives, the CBN is also granting licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and ensuring timely access to naira liquidity for IMTOs, all of which contribute to a more efficient and stable foreign exchange market.

Dr. Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria, explained that diaspora remittances are a vital source of foreign exchange for Nigeria, complementing both foreign direct investment and portfolio investments. He highlighted that the CBN’s initiatives have contributed to the continued growth of these inflows, aligning with the CBN’s goal of doubling formal remittance receipts within a year. Gwadabe also emphasised that, given the CBN’s ongoing efforts to strengthen public confidence in the foreign exchange market, build a robust and inclusive banking system and promote price stability, the flow of remittances into the economy is expected to increase—fostering sustained economic growth.

In the report “Diaspora Remittances: The Power Behind Africa’s Sustainable Growth”, Mohamed Touhami el Ouazzani, Regional Vice President of Africa at Western Union, emphasized that while remittances can be measured by the movement of money, their true impact lies in the lives they change. He revealed that in 2023 alone, $90 billion flowed into Africa from its global diaspora—an amount that rivals the Gross Domestic Product (GDP) of entire nations.

Touhami el Ouazzani noted that remittances represent the deep ties that connect communities across borders, underscoring their significance beyond just financial transactions. “Families with a breadwinner working abroad depend on these funds to provide vital support for day-to-day needs. They also build the foundation for broader financial stability.

“Beyond their immediate impact, remittances are powerful drivers of economic change. They fuel infrastructure development, spur entrepreneurship, and promote financial inclusion – all essential for long-term economic development. Ghana’s National Financial Inclusion and Development Strategy (NFIDS) is simplifying access to remittances, while countries like Kenya, Ethiopia and Nigeria are tapping into diaspora bonds to fund infrastructure and other national projects,” he added.

For remittances to be truly transformational, it starts with understanding and addressing people’s aspirations. Ensuring that individuals—regardless of their financial status—can send and receive funds is crucial. It’s essential to cater to the diverse needs of all, empowering those who strive for more to access the financial support they require. “In a continent renowned for its entrepreneurial spirit, offering multiple channels for remittance access is key. Whether through bank accounts, digital wallets, mobile money apps, or cash pickups, this flexibility ensures that funds are delivered in ways that best suit local realities. Providing innovative and inclusive solutions empowers individuals to not only manage their immediate needs but also to invest in long-term growth opportunities,” he added.

According to him, every remittance is a seed of change— a purposeful investment in a future where borders become increasingly irrelevant. “The future of remittances in Africa transcends mere financial support. By strategically directing funds into sectors that need them most, Africa’s diaspora is not just sending money home; they are building resilient economies and challenging traditional models of progress.

“This power demands that we unite with purpose, reimagine prosperity and empower future generations. The question then becomes whether we are prepared to unlock the continent’s true potential and reshape the global narrative of success,” he stated.

Recent data from the International Monetary Fund (IMF), particularly its Currency Composition of Official Foreign Exchange Reserves (COFER), reveals a growing prominence of nontraditional reserve currencies. These include the Australian dollar, Canadian dollar, Chinese renminbi, South Korean won, Singaporean dollar, and various Nordic currencies.

Stakeholders agree that the initiatives introduced by the Central Bank of Nigeria under Governor Cardoso have not only revitalised the foreign exchange market and ensured lasting stability but have also laid the groundwork for sustainable economic growth. They have applauded the collective efforts from all parties involved, emphasising that the financial system must be equipped to play its crucial role in driving development. They stressed the importance of supporting businesses in reaching new heights, both in domestic and international markets, ensuring that the economy remains resilient and competitive on the global stage.

April 21, 2025
How has Issa Aremu fared at Labour Institute?

Not many Nigerians are aware of the role the Michael Imoudu National Institute for Labour Studies (MINILS) plays in labour education. Established via Act Cap 261 of the Laws in 1983, MINILS has been promoting labour education and building the capacity of workers, employers and government officials in labour and industrial relations. In this special report, Assistant Features Editor CHINAKA OKORO examines the trajectory of the country’s foremost labour institute under its current leadership, revealing stakeholders’ call for renewal of its appointment.

The Michael Imoudu National Institute for Labour Studies (MINILS) which was established in 1983 aimed at building the capacity of workers, employers and government officials in labour and industrial relations. This is achieved through training, research and fostering inter-institutional linkages to promote best practices and achieve industrial harmony for sustainable development.

The Institute, named after Nigeria’s foremost union leader, Pa Michael Athokhamien Omnibus Imoudu, undertakes extensive initiatives aimed at building the capacity of workers and their unions; promoting exchange between industrial relations parties in the interest of industrial harmony; developing international linkages to encourage best practices and global solidarity and advancing the frontiers of unionism.

As a result of its role in fostering strategic and peaceful relationships between the government and labour, the former Minister of Labour and Employment, Senator Chris Ngige, in 2022, recommended that labour leaders should visit the Michael Imoudu National Institute for Labour Studies (MINILS) for labour education.

Ngige’s comments came at the peak of labour agitations in the country over the hike in the pump price of petroleum products, economic hardship and other challenges during the administration of former President Muhammadu Buhari.

The former Anambra State Governor emphasised the need to send a new crop of labour leaders to MINILS to study labour-related issues as the constant threat of strikes by labour unions was becoming a disservice to the country.

Not many Nigerians are aware of the role MINILS plays in labour education. Established via Act Cap 261 of the Laws in 1983, MINILS has been promoting labour education and building the capacity of workers, employers and government officials in labour and industrial relations. It does this through regular and in-plant courses and inter-institutional linkages; all aimed at promoting industrial harmony and best labour practices for sustainable national development.

Under the leadership of its current Director-General/Chief Executive Officer, Issa Aremu, the agency has been repositioned to effectively promote labour education, among other mandates.

Since his appointment in 2021 by former President Buhari, Aremu has transformed the agency from an idle institution into a vibrant organisation aligned with its statutory mandate.

Ngige’s recommendation that labour leaders be sent to MINILS is a testament to the progress made by the former General Secretary of the National Union of Textile and Garment Workers under the supervision of the Federal Ministry of Labour and Employment.

That recommendation has since been graciously embraced by trade union organisations.

Transformative leadership

Before Aremu’s appointment in 2021, MINILS was underperforming in its core mandates of education, citizenship engagement, and policy advocacy, which complemented the government’s efforts.

Together with his management team, Aremu has, over the past four years, provided transformational leadership that has repositioned the once-dormant institute into a fast-performing and visible agency under the Federal Ministry of Labour and Employment.

For the first time in its history, the Director-General initiated and inaugurated a corporate Strategic Plan (2022–2026) for the Institute. The plan outlines a framework and roadmap for the systematic growth of MINILS within the context of its enabling statute and the expectations of its stakeholders.

Currently, Aremu has made MINILS more visible and aligned its activities with President Bola Tinubu’s Renewed Hope Agenda. The institute has also been active in promoting industrial harmony in workplaces, social dialogue between labour and the government, youth skill acquisition programmes, youth and women inclusion and mass digital literacy for self-employment and empowerment.

Members of organised trade unions under the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC) and the Nigeria Employers’ Consultative Association (NECA), at both federal and state levels, regularly patronise MINILS for labour education.

As good luck would have it, the Institute, under Aremu’s leadership, has effectively keyed into President Tinubu’s Renewed Hope Agenda.

As part of the President’s focus on workplace harmony for national development, MINILS surpassed its 2024 Ministerial Deliverables Target of 1,250, reaching over 3,000 on-site/online participants at the institute’s headquarters in Ilorin, Kwara State.

The administration’s 8-point agenda and the Labour, Employment and Empowerment Programme (LEEP) spearheaded by the Minister of State for Labour and Employment, Dr Nkiruka Onyejeocha, aim to promote youth employment through skill acquisition and participation in the digital economy.

To drive this mandate, MINILS trained 720 youths from across Nigeria’s six geopolitical zones in entrepreneurial skills, including cinematography, photography, carpentry and textile design.

Having completed the construction of the Entrepreneurship Development Centre in 2022, equipped with sewing machines, photographic tools and carpentry equipment, Aremu has, admirably, diversified the institute’s training beyond traditional courses such as collective bargaining and grievance handling to include mass job creation and poverty eradication through skills acquisition.

Under the Federal Government’s SKILL-UP-ARTISANS (SUPA) programme initiated by President Tinubu, MINILS trained 220 participants in various trades such as tailoring, carpentry and design.

Again, Aremu’s administration has ensured a significant gender mix of male and female participants from unions, employer associations and states, including People with Disabilities (PWDs) in line with the inclusion agenda of the Renewed Hope Agenda.

Participants from all six geopolitical zones attend the institute’s annual training programmes, signifying a national reach and impact.

Another area of achievement in the past four years is Comrade Aremu’s reversal of the infrastructural and environmental decay of the institute.

He reconstructed access roads and extended them to the host community, completed a previously-abandoned U-shaped complex and renovated hostels, a 1,000-capacity auditorium and several training halls.

His role in minimum wage negotiations

During the protracted negotiations on the new national minimum wage, Aremu leveraged over three decades of labour experience. He participated in the South-West Zonal public hearing organised by the Tripartite National Minimum Wage Committee in Lagos on March 7, 2024 and the Policy Dialogue on the New National Minimum Wage Act hosted by MINILS on March 16, 2024.

Following the October 2, 2023 15-point Memorandum of Understanding between organised labour and the Federal Government, President Tinubu inaugurated a 37-member Tripartite Committee on January 30, 2024.

As MINILS Director-General, Aremu initiated a cost-of-living market survey that provided research input into the remarkable negotiations that resulted in a new national minimum wage of n70,000.

Under Aremu’s leadership, MINILS marginally improved its internally generated revenue (IGR) from subsidised courses; though these gains were tempered by inflation and high transportation costs. With improved capital and overhead budgets, MINILS plans to further exceed ministerial targets in line with President Tinubu’s Renewed Hope Agenda.

As an apostle of continuity, Aremu has completed inherited projects, including office blocks, classrooms and hostels; built a crèche for working parents; introduced renewable solar energy; constructed a 10-kilometre access road to the Olulade host community; initiated a new administrative block; and maintained the 15-hectare institute premises.

He has also invested in staff capacity building, paid support staff regularly and enhanced the morale of members of staff, while also increasing the budget and revenue base of the institute.

Read Also: Ekiti Labour leaders endorse Oyebanji’s re-election bid

As a firm believer in mass citizenship engagement, Comrade Aremu has actively promoted awareness of the Renewed Hope Agenda’s labour-related reforms, including the new minimum wage, public transportation alternatives post-subsidy and the student loan initiative. Apart from this feat, he has ensured capacity building of the Institute as part of the Institute’s core mandate by upscaling both on-site and online labour education for improved productivity and industrial harmony in Nigeria and West Africa.

Thousands of public and private sector workers have benefited from regular and tailor-made (in-plant) training delivered through MINILS’ five core departments: Trade Union Education; Labour Management Relations; Academic and Distance Learning; Entrepreneurial Development and Social Protection.

Despite the COVID-19 disruptions in 2021/2022, MINILS organised hundreds of training courses which focused on social dialogue, collective bargaining and peaceful conflict resolution.

Courses also cover labour law, leadership, conflict resolution, work ethics and trade union practice in evolving environments.

Aremu’s role in Tinubu’s election

Aremu’s experience extends to politics. As a seasoned labour leader, he was appointed as the Director of the Labour Directorate of the Asiwaju/Shettima Presidential Campaign Council (PCC) of the All Progressives Congress (APC).

The directorate, inaugurated at the Presidential Villa on September 29, 2022, mobilised labour unions and civil society groups nationwide. It facilitated a Town Hall meeting between the APC presidential candidate and organised labour on December 19, 2022, attended by 1,817 labour leaders from 62 industrial unions.

The engagement was considered the PCC’s most successful and significant contribution to APC’s 2023 electoral victory.

Aremu also delivered his Alapata polling unit in the Baboko electoral ward for President Tinubu and Governor Abdulrahman AbdulRazaq.

As part of his achievements, Aremu revived the hitherto moribund national and international partnerships for MINILS, attracting resources and technical competencies.

The Institute also signed an MoU with the International Training Centre of the International Labour Organisation (ITCILO) for staff training and promotion of decent work.

Other partnerships include with: Friedrich-Ebert-Stiftung (FES); Development Research and Projects Centre (DRPC); Kwara State Government; West African Management Development Institute (WAMDEVIN); National Universities Commission (NUC); University of Ilorin; Lagos State University (LASU); Independent Corrupt Practices and Other Related Offences Commission (ICPC); National Salaries, Incomes and Wages Commission (NSIWC) and Nigeria Institute of Policy and Strategic Studies (NIPSS), Kuru.

International collaborations include the University of Greenwich’s Centre of Research on Employment and Work (UoG-CREW) in London and the International Labour Organisation’s (ILO) ITC in Turin, Italy, which were the two major takeaways from the Nigerian delegation at the 353rd Session of the Governing Body (GB) of the ILO in Geneva, Switzerland.

As his tenure winds down, many believe that Comrade Aremu deserves a renewal of his appointment to continue his impactful reforms at MINILS.

Observers also suggest that the country still needs his wealth of experience to foster productive labour relations between the Tinubu administration and the labour unions.

April 18, 2025
Inside the N1.3tr CBEX scam that left thousands bankrupt

On the night of April 15, thousands of Nigerians were left reeling from the collapse of CBEX, a cryptocurrency investment platform that promised quick wealth through high returns. As news spread that the platform had vanished, leaving its investors penniless, a scene of chaos unfolded in Ibadan, where hundreds of victims gathered in desperate search of answers. Their faces, frozen with shock and disbelief, mirrored the heartbreak and betrayal felt across the nation. What began as a hope for financial freedom had ended in one of Nigeria’s most devastating Ponzi scheme failures, leaving a trail of broken dreams and shattered lives, report YINKA ADENIRAN and NTAKOBONG OTONGARAN.

• EFCC wades in

They were stunned—speechless, bewildered and heartbroken. Men and women, young and old, all united by disbelief and silent anguish. Some clung to the desperate hope that it was just a bad dream they would soon awaken from. Others were already burning with quiet rage, waiting for the slightest chance to exact revenge. They were the victims of a Ponzi scheme—CBEX—which reportedly collapsed on Monday night.

While some rolled on the ground, wailing in despair, others sat in stunned silence, their faces etched with confusion and betrayal. The atmosphere at the CBEX office in Oke Ado, Ibadan, was heavy with tension and heartbreak. Hundreds had gathered there, all grasping for answers—hoping against hope that what they had heard wasn’t true. But the grim reality was inescapable. These were just a fraction of the thousands of Nigerians left financially shattered by the sudden implosion of CBEX, a cryptocurrency investment platform that lured investors with the promise of impossibly high returns.

The distraught crowd that converged on the Ibadan office recounted harrowing losses—millions of naira vanished in the blink of an eye. For many, CBEX had been a lifeline, a shot at financial freedom. Now, it was a nightmare they never imagined. The collapse of CBEX, a cryptocurrency investment scheme, has left thousands of Nigerian investors reeling in disbelief and financial ruin. Many of the victims, who gathered at the company’s Oke Ado office in Ibadan, described the situation as a bitter pill they were forced to swallow. Several are still clinging to faint hope that the scheme might somehow be revived, unable to fully grasp the magnitude of their losses.

At the heart of the growing outrage is the staggering scale of the reported financial damage—estimated at over $935 million (about N1.5 trillion) in trapped or vanished funds. The investors, who were lured by the promise of doubling their money within 30 days, now say they were misled and betrayed. As of the time of filing this report, it remains unclear whether CBEX was registered with the Securities and Exchange Commission (SEC) or had the necessary approvals to operate such a financial scheme. Regardless, it managed to attract scores of Nigerians with lofty promises and slick marketing. For many, CBEX wasn’t just an investment; it was a lifeline—a means to improve their lives. Now, they are left with nothing but regrets, broken dreams, and a desperate cry for justice.

In Lagos, the scam that wore a suit

“Owo mi ti lo.” – My money is gone. That was the helpless cry of Rasheedah, a caterer from Yaba, Lagos, who had poured N2.5 million—her entire savings—into what was once hailed as Nigeria’s fastest-growing digital investment platform: CBEX. Like thousands of other Nigerians, Rasheedah believed in the promise of financial freedom, AI-powered trading, and guaranteed 100% returns in just 30 days. What she didn’t know was that CBEX was, in reality, one of the most intricately disguised Ponzi schemes Nigeria has ever witnessed—defrauding over 600,000 Nigerians and siphoning off a staggering N1.3 trillion in just nine months.

CBEX — short for Crypto Business Exchange — branded itself as a next-generation, AI-driven cryptocurrency trading and wealth-building platform. With sleek user dashboards modelled after legitimate platforms like Binance and a daily ROI promise of 3.5%, it appeared too good to ignore in a country where the average annual interest rate on savings hovers around a mere 5%.

According to a BusinessDay investigation, CBEX cemented its credibility using a strategic two-pronged approach: aggressive influencer marketing and gamified referral schemes. Social media influencers, especially in Lagos, were paid generously to flaunt “withdrawal proofs” and post flashy Instagram Reels showing off bundles of cash—convincing everyday Nigerians that CBEX wasn’t just legit, it was the future.

Behind the glossy interfaces and technical jargon, there was no trading. No AI. No blockchain innovations. Just a carefully orchestrated maze of bank accounts and crypto wallets engineered to launder money as quickly as it was collected.

In April 2024, the Hong Kong Securities and Futures Commission (SFC) raised the alarm, issuing a public warning against the fraudulent operations of CBEX Group and Bitget Pro. The signs had been there all along. Promises of 100% returns in 30 days—financially impossible. No verifiable licenses—CBEX wasn’t registered with Nigeria’s Securities and Exchange Commission. Aggressive referral schemes—eerily reminiscent of MMM’s “Bring Two to Earn More” model. And an opaque structure—no known office address, no traceable directors, no accountability.

Yet CBEX didn’t just survive—it thrived in Nigeria. From Ikeja to Lekki, Mushin to Agege, its network expanded rapidly. Recruitment hubs sprang up in restaurants, co-working spaces, and even church halls. “Team leads” earned commissions for each new investor they brought in. Hopes of doubling one’s income overtook caution. Ngozi, a 41-year-old church treasurer, told FIJ that she persuaded 13 members of her women’s group to invest N4.8 million in cooperative funds. “They trusted me,” she said, voice cracking. “Now they call me every day, crying. I can’t sleep.”

In February, CBEX hosted a promotional event at a bar in Lekki. What began as a flashy networking party ended in devastation. “We were fools,” said Tope, a photographer who lost N780,000. “That’s what I keep telling myself.” The crash came quickly. On April 7, 2025, investors began reporting withdrawal delays. CBEX claimed accounts were under review and demanded “verification fees” of $100 to $200 to unlock funds, promising $1,000 or more in return. Some paid. Most never got a dime back. By April 11, panic had set in. Wallets were frozen. On April 15, CBEX vanished—Telegram channels locked, WhatsApp groups restricted, websites wiped clean.

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In Lagos, the aftermath was nothing short of chaos. Instagram was flooded with videos of distraught investors—many of them women—storming the CBEX office in Egbeda. Some collapsed in anguish. “God, oh God, what have I done?” wailed one woman in a heart-wrenching voice note shared by The Sun. “I went to the Lagos office, but it was locked,” recalled Azeez. “It felt like a bad dream.”

The human toll was staggering. Reports of suicides and mental breakdowns painted a grim picture. “So many people attempted suicide because of this Ponzi scheme,” one anonymous victim told The Sun, questioning how such a colossal scam had evaded the radar of authorities for so long. In a cruel twist, users were later asked to “re-verify” their accounts by paying fees ranging from $100 to $200—deepening the wounds for those already duped. “It was psychological warfare,” said Olumide, an accountant based in Surulere. “We weren’t just defrauded—they toyed with our minds.”

With its population of over 20 million and a thriving tech-savvy youth, Lagos was CBEX’s epicentre. The city’s economic pressures—soaring 33.1% inflation, a plummeting naira, and high unemployment—made the platform’s promises of high returns dangerously appealing. “Lagosians are natural hustlers,” said Olayimika Oyebanji, a Web3 specialist. “But that hustle makes us vulnerable to scams, especially those exploiting the crypto space.”

CBEX’s referral model weaponised trust, turning ordinary people into accidental recruiters. “I referred my brother and even my pastor,” said Chidinma Okeke, a single mother from Ikeja who lost N1.5 million. “Now they blame me.”

The lure before the crash

Before its sudden collapse, CBEX presented itself as a sophisticated investment platform leveraging artificial intelligence to generate returns with minimal risk. Sources revealed that the scheme operated under a so-called “compound interest” model, claiming that AI would trade just 1 per cent of an investor’s balance twice daily—an approach marketed as risk-averse and highly efficient. The allure was strong, bolstered by promises of rapid profits and a referral system that rewarded users with a 12 percent increase in trading signals for bringing in new investors—a textbook characteristic of a Ponzi scheme.

As confidence grew, many investors poured in not just their savings but borrowed funds, hoping for quick returns. Tragically, the scheme’s abrupt withdrawal restrictions and eventual crash left them financially stranded. For many like Olubiyi Ojewale, the crash of CBEX was more than a financial blow—it was a personal crisis. He had invested his house rent, banking on promised returns. Now, like countless others who saw CBEX as a lifeline, he faces the grim reality of broken promises, growing debts and uncertainty about how to recover from the loss.

He said, “I invested $300 on 4th of April with the hope of making first withdrawal on 9th of May but the scheme unfortunately crashed on 15th of April. I am finished; I will be homeless from next month because I have invested all the money saved to renew my annual house rent on CIBEX. I won’t lie to you it will affect me in many ways because I don’t have any other way of raising the money for now.

“I don’t know what to tell my landlord by next month after I have already begged for three months. Greed has killed me. If I had known I would have paid my house rent instead of investing the money. Where will I raise money if I am served quit notice over failure to pay the rent? I am scared I will be homeless soon; If I am permitted to stay here I will bring my belongings here to their office here in Oke Ado since I am about to be homeless due to my investment in the scheme.”

Another investor, Fola Olaoye, is now caught in a web of regret and fear after introducing his landlord and the landlord’s son to the CBEX scheme. While Olaoye invested $600 (about N1 million), his landlord put in $1,000, and his son added $600—bringing their combined loss to $1,600. None of them were able to withdraw either capital or profit before the platform crashed. Now, Olaoye says he is avoiding calls from his landlord, afraid of the fallout and the possibility of eviction. He admitted to putting his phone on flight mode just to escape the tension, as the incident has strained their relationship. With emotions running high and trust broken, Olaoye’s situation mirrors the plight of many others who not only lost money, but also risked the relationships they valued most.

One of the victims, who requested anonymity, revealed that he had invested his entire retirement benefits from the bank into the scheme. “My initial plan was to use the profits from the investment to start a business,” he said, his voice heavy with regret. “I even encouraged my wife to do the same. She invested $7,000 in the scheme. Now, we are ruined. Everything we laboured for is gone. I regret putting my life savings into this, and even more, I regret convincing my wife to do the same. We’ve lost it all.”

Another investor, Olaoluwa Adebayo, shared a similarly painful experience. He had returned to Nigeria from the United Kingdom with plans to start a business and invested $15,000 into the scheme. According to him, he was initially sceptical, especially since he had experience trading forex while in the UK. “I didn’t believe in the scheme at first,” he said. “But a friend of mine withdrew $11,000 from it right in front of me. That convinced me it was real, so I decided to invest before starting my business. Now, everything is gone.”

He said, “I invested with 15000 US dollars after my return from the United Kingdom and the money was meant to start up business here in Nigeria but I decided to invest in the scheme first before starting the business, at first I didn’t believe in the scheme because I also trade in forex but I invested in it after my friend here in Nigeria withdraw 11000 US dollars from the scheme in my presence. So, this convinced me and invested 15,000 dollars on it, I withdrew my money before investing the money back on the scheme, but sadly our money is gone.”

Early looting

Shortly after rumors of the platform’s impending collapse spread among investors, hundreds of aggrieved individuals stormed the company’s office in Oke Ado, Ibadan, looting everything in sight. Eyewitnesses said the chaos erupted earlier in the day when a group of unidentified persons forcibly entered the premises of CBEX, which occupies a floor in the two-storey building, and began carting away valuable items.

A viral video circulating on social media captures the moment people were seen hauling items out of the building while stunned bystanders looked on in disbelief. Residents described the scene as chaotic and surreal, with some saying the looting began abruptly and escalated rapidly before security operatives could arrive. “I was just returning from the market when I saw people rushing into the building and coming out with things. It felt like a scene from a movie,” recounted a local trader.

As news of the looting spread, security operatives were swiftly deployed to the scene to safeguard lives and property. At the time of this report, the police have taken full control of the CBEX office complex in Oke Ado, Ibadan, in a bid to prevent further destruction and theft by enraged investors. A police source confirmed that the action was necessary to forestall additional looting of equipment and to restore order.

Regulatory gaps

One of the affected investors, an entrepreneur who requested anonymity, described the CBEX debacle as a glaring indication of the regulatory shortcomings in Nigeria’s financial ecosystem. While acknowledging that the Securities and Exchange Commission (SEC) has repeatedly warned the public about unregistered investment platforms, he criticized the agency’s lack of aggressive enforcement.

He noted that although the newly signed Investment and Securities Act (ISA) 2025 provides the SEC with broader powers to clamp down on fraudulent schemes, the legislation has come too late for CBEX investors. He called on all relevant regulatory bodies to urgently bridge the gap between policy and enforcement, stressing that more proactive oversight could prevent future financial scams. In his appeal to the public, he emphasized the importance of financial literacy and urged Nigerians to be wary of schemes that promise guaranteed returns. “We must learn to question what looks too good to be true. Financial education is key to protecting our future,” he said.

EFCC wades in

The Economic and Financial Crimes Commission (EFCC) has since launched a full-scale investigation. Speaking on Channels Television’s Morning Brief on April 16, 2025, EFCC spokesperson Dele Oyewale said the agency had been tracking CBEX before its collapse. “We didn’t wait for Nigerians to cry out before we took action,” he said, revealing that the EFCC had been gathering intelligence on the platform for some time.

The commission is now probing what it describes as a N1.3 trillion fraud, working with Interpol to go after both local and international perpetrators. “We had our intelligence before the incident,” Oyewale reiterated. He pointed to a March 11, 2025, advisory that listed 58 suspected Ponzi schemes—though CBEX was conspicuously missing from the list.

Still, Oyewale struck an optimistic tone for victims. “Investors are going to get their money back,” he assured, citing provisions in the newly enacted Investment and Securities Act (ISA) 2025, which criminalises unregistered digital trading platforms. With the ISA 2025, it’s straightforward—we will bring them to justice,” he said, emphasising collaborations with international law enforcement, the Securities and Exchange Commission (SEC), and the Central Bank of Nigeria (CBN).

April 17, 2025