Despite years of reform, Nigeria’s power sector has long struggled with inefficiency, debt and weak service delivery. But recent developments—driven by the strategic leadership—signal a turning point. From historic revenue gains to decentralised regulation, market restructuring and ambitious metering initiatives, the Nigerian Electricity Supply Industry is undergoing a quiet revolution, offering a glimmer of hope for consumers long weary of darkness and disappointment, reports JOHN OFIKHENUA.
Revenue generation remains the cornerstone of sustainability and growth in any industry, and the Nigerian Electricity Supply Industry (NESI) is no exception. A significant stride in this direction has been achieved—thanks to the strategic leadership of the Minister of Power, Chief Adebayo Adelabu.
Last year, in collaboration with him, the Nigerian Electricity Regulatory Commission (NERC) introduced a tariff increase for Band A customers—who represent 15 per cent of NESI’s consumer base. Although the policy initially sparked public outcry, it has proven impactful. At the Ministerial Press Briefing Series in Abuja last month, Adelabu announced that the reform yielded a remarkable N700 billion boost in market revenue—a 70 per cent jump from N1 trillion in 2023 to N1.7 trillion in 2024. He further disclosed that the increased earnings significantly reduced the government’s subsidy burden, trimming it from N3 trillion to N1.9 trillion within the review period.
His words: “Furthermore, it is evident that, due to our transformative tariff reforms, the market has generated an additional N700 billion in revenue, reflecting a 70% increase. This results from the cost-reflective tariff adjustment for Band A customers. Market revenue for 2024 rose from NGN 1 trillion in 2023 to NGN 1.7 trillion. This growth in market revenue is unprecedented, as the highest growth previously achieved was 20%. This has positively impacted the reduction of the government-subsidised tariff shortfall by 35%, decreasing it from NGN 3 trillion to NGN 1.9 trillion. According to the minister, it was a demonstration that financial viability and service delivery can coexist harmoniously.”
A few weeks later, the Minister hinted at the complete removal of electricity subsidies to pave the way for a fully cost-reflective tariff regime. He urged Nigerians to brace for the shift, stressing that subsidies were no longer fiscally sustainable. Should the government succeed in eliminating the subsidies, the projected N2.5 trillion budgeted for subsidy payments in 2025 could be redirected to critical infrastructure development. In terms of improving market liquidity, the Nigerian Electricity Liability Management Company (NELMCO) made commendable progress in debt recovery. Its efforts led to the reconciliation and reduction of debts owed by Federal Ministries, Departments, and Agencies (MDAs) to the Abuja Electricity Distribution Company (Abuja DisCo), cutting the figure by 47.4 percent—from N15.53 billion to N8.17 billion.
Another major milestone in the sector was the operationalisation of the Electricity Act (EA) 2023, which decentralised the electricity market. The Act empowered the Nigerian Electricity Regulatory Commission (NERC) to cede regulatory authority to states, allowing them to establish their own electricity regulatory bodies. This reform has spurred states and independent power producers into action. By the end of Q1 2025, NERC had successfully transferred regulatory oversight to 11 states: Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, and Plateau. Of these, seven states—Enugu, Ekiti, Ondo, Imo, Oyo, Edo, and Kogi—have completed the transition, while four others are still in the process.
For years, stakeholders in the power sector vigorously advocated for the unbundling of the Transmission Company of Nigeria (TCN). However, due to a perceived lack of political will or clarity on implementation, no concrete steps were taken—until the enactment of the Electricity Act (EA) 2023 empowered the current administration to act. In line with the Act, the Federal Government established the Nigerian Independent System Operator (NISO), which has now commenced operations.
According to the Minister of Power, Chief Adebayo Adelabu, the creation of NISO represents a significant milestone in Nigeria’s power sector reform. As mandated by the Electricity Act 2023, TCN is to be split into two distinct entities: the Transmission Service Provider (TSP) and the National Independent System Operator (NISO). This separation is designed to ensure operational clarity and independence between system operations and market functions. While previous administrations attempted this reform without success, the Tinubu administration achieved a breakthrough with the formal inauguration of NISO’s board by Vice President Kashim Shettima on April 8. NISO is now responsible for independently managing grid operations to improve efficiency and reliability.
At the distribution end of the electricity value chain, power distribution companies (DisCos) are the closest to consumers. One of their most persistent challenges, however, has been inadequate metering and poor revenue collection. To tackle this, the Federal Government has launched the Presidential Metering Initiative (PMI), aimed at closing the country’s metering gap and ensuring transparent billing and enhanced revenue recovery. The PMI is backed by a N700 billion allocation from the Federation Accounts Allocation Committee (FAAC) and will be implemented through a newly established Special Purpose Vehicle (SPV), with a fully constituted board. The initiative aims to deploy 1.1 million meters by the end of 2025, followed by 2 million meters annually over the next five years. Procurement processes for the meters are already underway.
In addition to domestic initiatives, the metering drive has received a significant boost through the World Bank-funded Distribution Sector Recovery Program (DISREP). Under the program, over 3.2 million meters will be procured and installed nationwide, alongside the deployment of meter data management solutions to enhance DisCos’ operational performance. The first batch of 75,000 meters under the International Competitive Bidding 1 (ICB1) arrived in April, with an additional 200,000 meters expected by May 2025.
Just last week, Minister Adebayo Adelabu disclosed that the ongoing nationwide metering efforts were already yielding tangible results. He noted that the mass metering initiative across military barracks had generated N769.1 million in revenue between August 2024 and April 2025. The project, beyond revenue generation, aims to improve electricity supply and foster better energy consumption management within military installations. Meanwhile, distribution companies are undergoing a major restructuring process to enhance service delivery and operational efficiency. According to the minister, changes in ownership and management are underway, while the Nigerian Electricity Regulatory Commission (NERC) is strengthening the performance matrix to ensure improved accountability among the DisCos.
The generation sub-sector of the Nigerian Electricity Supply Industry (NESI) has also recorded remarkable growth within the review period. On March 2, 2025, Nigeria reached a record-breaking available generation capacity of 6,003 megawatts (MW)—a historic first. Just two days later, on March 4, 2025, the country achieved a peak generation evacuation of 5,801.44 MW, with an accompanying daily energy delivery of 128,370.75 megawatt-hours (MWh). These milestones reflect a steady upward trend, as the average daily power generation and distribution in Q1 2025 stood at 5,700 MW, compared to 4,100 MW in Q3 2023—an increase of 1,600 MW, or nearly 40%, since Adelabu assumed office.
Further gains have come from the revitalization of previously dormant assets. The new management of the Niger Delta Power Holding Company (NDPHC), in collaboration with the ministry, has successfully restored 232.5 MW of idle capacity from the Omotosho and Benin power plants. Further demonstrating its nationwide impact, the Niger Delta Power Holding Company (NDPHC) has implemented major infrastructure upgrades across the electricity transmission network.
According to Adelabu, 14 transmission lines have been constructed, upgraded, or newly installed across various states. Notable among these are the rehabilitation of the existing 2 x 132kV transmission line bay extension at the TCN substation in Papalanto, Ogun State, and the ongoing 65km 330kV double-circuit transmission line between Afam and Ikot Ekpene (Lot 4A). Beyond the grid, off-grid and interconnected mini-grid projects have brought clean, reliable electricity to thousands of households across Plateau, Cross River, Niger, Oyo, and Osun States. These include: a 550KWp solar mini-grid in Bakin Ciyawa and Kwande communities, Plateau State; a 440KWp mini-grid in Cross River State; a 990KWp system powering 3,900 households in Niger State; a 510KWp solar hybrid mini-grid in rural communities in Osun State.
In terms of foreign investment and partnerships, Adelabu revealed that Sun Africa Energy and Skipper Electric have expressed strong interest in Nigeria’s power sector, particularly in renewable energy generation and grid expansion. Their proposals, currently under review, aim to integrate solar power into the national grid, diversifying energy sources away from traditional hydro and thermal generation and strengthening energy security. Efforts are also underway to maximise output from Nigeria’s major hydro assets. Of the 700MW capacity at Zungeru Hydropower Plant, 550MW is currently being evacuated, while the Kashimbila Plant is fully evacuating its 40MW capacity. Looking ahead, development has commenced on the Makurdi Hydropower Project, which has the potential to generate up to 1,500MW, and the revitalization of the Kaduna Thermal Plant, a 215MW facility that had been inactive for six years but is now 87% complete and expected to be operational by the end of the year.
Meanwhile, feasibility studies for the concession of the abandoned 10MW Katsina Wind Farm are underway in partnership with the Katsina State Government and private investors. Additionally, the ministry is exploring wind energy potential along Nigeria’s coastal belt in tandem with the Lagos-Calabar Coastal Highway project, as part of efforts to diversify the country’s energy mix through sustainable sources.
In terms of power generation, Nigeria holds an impressive 14GW hydropower potential, yet currently utilises only about 20% of that capacity. To bridge this gap, the Federal Government is developing a comprehensive hydropower plan focusing on small dams under the Sustainable Power and Irrigation in Nigeria (SPIN) program. Spearheaded by the Minister of Power, Chief Adebayo Adelabu, feasibility studies are currently underway—particularly along strategic development corridors such as the Badagry to Sokoto Highway—to harness small hydro resources more effectively.
However, despite these promising initiatives, the electricity sector remains burdened by a substantial financial crisis. A debt overhang of over N4 trillion continues to stifle progress, severely limiting the operational capacity of Generation Companies (GenCos). Many GenCos have expressed their frustration, warning of possible shutdowns if the liabilities are not addressed. In response, Adelabu has committed to settling 50% of the outstanding debt by the end of 2025—a significant step toward restoring investor confidence and operational stability in the sector.
Another critical challenge lies in the reluctance of Distribution Companies (DisCos) to invest in infrastructure upgrades. This hesitancy is largely attributed to the absence of a fully cost-reflective tariff regime, which undermines returns on investment. Simultaneously, a significant portion of the public continues to view electricity as a government-provided social service—a mindset rooted in the legacy of the defunct National Electric Power Authority (NEPA). The issue is further compounded by the widespread lack of metering. Many customers, burdened by estimated billing practices they believe grossly inflate their actual usage, have resorted to energy theft and other forms of self-help. The DisCos’ inability or unwillingness to fully meter their customers remains a major impediment to accurate billing and sustainable revenue generation.
While commendable strides have been made in policy reform and infrastructure development, consumers remain largely unimpressed. The public continues to demand tangible improvements in actual power supply rather than abstract milestones like peak generation or theoretical capacity. For most Nigerians, the true measure of success in the electricity sector lies in consistent, reliable access to electricity—not in projections or promises.
• FG unveils policies to tackle national emergency
With bold targets and renewed investments, the Bola Tinubu administration is taking on Nigeria’s out-of-school crisis, but its lasting impact will depend on sustained political will and policy reforms. Deputy Political Editor RAYMOND MORDI examines the challenges inherent in the programme and how the government can overcome them.
Every morning before the city fully awakens, 13-year-old Taofik Bello is already knee-deep in Lagos trash. In Bariga area, where the streets are narrow and choked with smoke from burning refuse, he moves with purpose — dodging Keke Napeps, avoiding broken glass, and weaving through the chaos of early market hustle.
With a torn sack slung over his shoulders and bare, blistered hands, Taofik picks through piles of waste in search of anything worth selling—plastic bottles, old wires, or crushed cans. The stench is heavy, usually from spoiled food, stagnant water, and diesel fumes, but Taofik is undaunted.
Some miles away, on the sweltering streets of Oshodi, nine-year-old David runs after moving vehicles in traffic, balancing a basin stacked with sachets of pure water on his small head. Horns blare; engines growl, and drivers shout. But David weaves through it all, barefoot on hot asphalt, his face streaked with sweat and exhaust.
At every rolled-down window, he chants, “Pure water, three for 100 naira!” hoping to make enough to take something home. He should be in school, learning to write his name or solve simple Mathematics. Instead, he spends his days chasing moving cars and dodging danger.
Taofik and David are not exceptions — they’re the norm in a country where poverty has pushed millions of children into roles they were never meant to fill. Across Nigeria, childhood is being rewritten. Instead of schoolbags, children carry loads on their heads. Instead of toys, it’s trays, tools, and trash. Instead of homework, they work to earn some money to survive.
Embedded in culture
In the northern part of the country, the crisis of out-of-school children is deeply tied to religious and cultural practices. Instead of being in classrooms, many children are pushed into the streets, left to roam and beg for survival. This widespread neglect reflects a system that has normalised child poverty and denied countless young people a fair chance at a future.
As inflation spikes and unemployment grips their parents, more children are forced to become breadwinners — contributing to family income through street hawking, scavenging, begging, or hard labour. For many households, a small child’s earnings, however small, make the difference between eating and going hungry.
The Bola Ahmed Tinubu administration clearly understands the magnitude of the crisis and has articulated a fairly robust response. As Nigeria grapples with the world’s highest number of out-of-school children, the administration has taken a bold stance, promising sweeping reforms to reverse this trend. The administration has set a two-year target to return 10 million out-of-school children to the classrooms.
Education Minister Olatunji Alausa said the plan is an offshoot of the reform initiatives of the Federal Government under the Hope for Quality Basic Education programme (Hope-Ed). The minister spoke during this year’s edition of the International Conference on Smart Education (ICSE) organised by the Universal Basic Education (UBEC) in collaboration with the Korean International Cooperation Agency (KOICA).
With an estimated 20 million Nigerian children out of school, the scale of the crisis is both staggering and urgent. The administration’s recent moves signal intent, but the real test lies in execution and sustainability.
A promising start
Since taking office, President Tinubu has unveiled a raft of policies aimed at tackling this national emergency. Chief among them is the ambitious pledge to return 10 million out-of-school children to classrooms by 2027. The government has also inaugurated the National Commission for Almajiri and Out-of-School Children Education, tasked with mainstreaming non-formal education into the broader system and scaling literacy programmes nationwide.
The administration’s Data repository, Out-of-school children, Teachers’ welfare, Skills development (DOTS) framework is a major plank of this agenda. It aims to build an accurate data system for educational planning, prioritise teacher training and welfare, and promote skills acquisition to complement formal learning.
Tinubu has approved significant funding for the renovation of 195,000 classrooms, the construction of 7,700 new schools, the installation of 22,900 boreholes and 28,000 toilets, and the procurement of over 1.6 million school furniture items. Additionally, more than 100 million textbooks and two million teaching aids are to be distributed nationwide.
These initiatives are supported by a renewed push for federal-state collaboration. The government has engaged state governors, urging them to align with the national blueprint and prioritise education in their respective domains. Vocational and technical education is also being promoted to equip the Nigerian youth with skills that match the demands of a changing economy.
Holistic approach
Experts say these initiatives reflect a holistic approach to tackling the out-of-school children crisis, combining infrastructure development, policy reform, and stakeholder collaboration. The administration’s commitment to education is evident in these multifaceted strategies aimed at creating a more inclusive and effective educational system in Nigeria.
Dr Davidson Akhimien, a retired military intelligence officer and security consultant, said it is a very laudable idea and would require collaboration between federal and state governments. He said, “A lot of emphasis should be placed on vocational training, by setting up vocational institutions across the country, because not everybody must go to a university. If we want to industrialise our country in the next 20 years, we must begin to provide the skill set that would be required for the workforce to support industrialisation, at least for the lower level.
“It would also help to reduce the current high unemployment rate in the country. The government should consider giving start-up grants to graduates of vocational training institutes to set up their businesses. In this way, they would create jobs and contribute to our gross domestic product (GDP) and reduce unemployment.
“Basic education must be formalised as a security and economic development issue. This shift will justify increased funding, prioritisation in conflict zones, and coordination between education and security agencies.”
Beyond good intentions
However, implementation has always been the Achilles’ heel over the years. Billions have been allocated before, with little to show for them. Corruption, bureaucracy, and poor monitoring often drain the impact before it reaches the children who need it most. The real test is not in the amount budgeted, or the detailed plan of action — but in whether it transforms lives at the street level, where kids like Taofik and David are still hustling for scraps.
The country has seen similar blueprints in the past that failed to take root because they were not anchored in law or aligned across the three tiers of government. “While these efforts are commendable, they are not likely to yield visible dividends in the short term—and perhaps not even in the long run—unless critical structural and institutional issues are addressed,” Emmanuel Gabari, a Kano-based broadcaster, social worker and human rights activist, told our reporter.
One such critical structural and institutional issue, he added, is that of an enabling law. He noted, “For the reforms to outlive the Tinubu administration, institutionalising them through legislation, funding frameworks, and federal-state compacts is crucial. Otherwise, they risk becoming another cycle of good intentions derailed by the next election season.”
Lack of legislative backing
The Kano-based activist said many of the programmes are not yet institutionalised. The DOTS framework, for instance, remains an executive initiative without legislative backing. As such, it is vulnerable to discontinuity if political priorities shift or a new administration takes a different path.
Similarly, the National Commission for Almajiri and Out-of-School Children, although established, still lacks the entrenched legal and financial autonomy required to operate independently of the executive arm. Thus, remains at the policy or programme level and cannot survive political transitions.
Besides, Gabari recalls that new administrations rarely continue programmes begun by their predecessors. He said, “I remember under the Goodluck Jonathan administration, a commission was set up to look into the challenges of the Almajiri education system. As a follow-up on the commission’s report, the administration built a lot of Almajiri schools in the northern part of the country.
“We saw how that project went, like a pipedream. Sadly, it was the very people who were supposed to be the beneficiaries of the Almajiri school project of former President Jonathan who kicked against it.
“So, you begin to wonder, what do we want? This pattern repeats across sectors: new governments scrap previous initiatives, even those launched with fanfare but yet to bear fruit.”
Tackling poverty
Beyond legislation and political will, any reform effort must also reckon with Nigeria’s deeper socioeconomic realities. Dr Akhimien reflects this perspective in the following paragraphs. He agrees with Gabari’s views in several respects. Like the Kano-based activist, he said the execution of the current policy would determine how far the Tinubu administration would go in bringing down the number of out-of-school children in the country.
For instance, he argued that bringing millions of children back to school also entails a reduction of poverty, particularly among some vulnerable groups. He added, “As Nigeria’s economic crisis deepens, millions of children are being left behind—hungry, uneducated, and invisible. The high level of poverty poses a major challenge to the rights of the child despite the country’s adoption of the 2003 Child Rights Act.
Insecurity
“Tackling insecurity in conflict-affected zones, especially in the north, is also key because many schools remain closed due to insecurity. The government must prioritise safe schooling by protecting education infrastructure and deploying security or community-based strategies to make school environments safe.”
The security expert said the National Assembly must enact an enabling law to support the new policy. He enjoined the government to criminalise some parents’ refusal to send their children or wards to school “because they are stealing the future of such children”. He added, “At least, with the funding of basic education by the government, parents have no excuse not to send their children to school.”
The retired military officer said the problem is complex, particularly in the north, because it is embedded in the region’s cultural practices. He noted, “However, with focused, culturally sensitive solutions, it is possible to change the narrative. Curbing the crisis in the north requires a multi-pronged approach that tackles both the root causes and the systemic gaps.
“These include reforming the Almajiri education by integrating it into the formal education system, with religious studies, so children can gain literacy, numeracy, and life skills alongside Quranic teachings. Government and religious leaders need to work together to modernise the system.”
Elite manipulation
He said it is erroneous to blame religion for the menace of out-of-school children in the north. His words: “It is a fallacy to say the problem lies in religion. Islam does not discourage education. It is the northern elite that have somehow manipulated the masses to shun Western education to keep them from seeing the light. Education is light, and light leads to freedom, liberty.
“Once they deprive these people of education, they are deprived of their rights. The problem isn’t religion—it’s elite manipulation. What the civil society groups should do is probably to demystify this thing about religion, Boko Haram, which means no to Western education. It’s all a lie. Most northern leaders have children in Ivy League schools in the West.”
Another strategy is through creating awareness by running targeted campaigns to shift cultural perceptions about the value of formal education, especially for boys in traditional Quranic schools and girls often kept out due to early marriage or domestic roles.
This can be done by engaging and collaborating with religious leaders and traditional rulers to champion education from within the cultural framework, making it easier for communities to accept reform. Deep-rooted practices such as Almajiri education must be modernised, not abolished, through integration with formal schooling.
Lack of political will
Dr Akhimien said the private sector and civil society organisations, which are major stakeholders, must also be integrated into the government’s educational policy. He said, “Whatever strategy is being adopted, the private sector and CSOs should be integrated more formally into the process. These groups often have deeper reach at the grassroots level and can help drive enrollment, monitor progress, and fill capacity gaps.”
The retired military intelligence officer said a mass mobilisation campaign should be developed and propagated on social and traditional media channels. “They must be produced in different indigenous languages, so that they come close to the heart of every Nigerian,” he added.
In addition, the political calendar presents a significant obstacle. With elections held every four years and campaigns beginning two years into the life of a new administration, there is often a lack of continuity between administrations because the education sector is largely under state control.
Education, which is largely controlled at the state level, suffers from fragmented implementation. Collaboration with state governments and international partners is essential to advance reform goals. Even at that, success depends on political alignment and long-term commitment across party lines and administrations.
Governors from different political parties or with competing priorities may not fully buy into Tinubu’s federal initiatives. This decentralisation, while constitutionally appropriate, fragments the national education response and hinders uniform implementation.
Funding challenge
Moreover, funding remains a perennial challenge. The Federal Government’s budgetary allocations to education in the last 10 years have hovered between five to nine per cent. This is against UNESCO’s recommendation that countries should allocate between 15 to 20 per cent of their national budgets to education.
The bulk of education spending often goes to recurrent expenditure (salaries, overheads) rather than capital investments (schools, tech, and infrastructure).
Despite the launch of multiple initiatives (e.g., UBEC, BESDA, Safe School Initiative), actual funding for implementation remains limited.
Implementation capacity is weak, and budgeted amounts are often poorly disbursed or underutilised. Reliance on federal allocations further exposes education funding to oil price volatility, political transitions, and economic shocks.
At the state level, education remains underfunded, despite being a constitutional responsibility. Most states allocate between 10 and 15 per cent of their budgets to education. However, actual disbursement and impact vary widely, as political will and capacity constraints affect delivery,
Besides, federal counterpart funding from UBEC usually goes unclaimed in many cases. This is due to poor budget planning or the inability to provide matching grants. Also at the state level, recurrent expenditure dominates—largely salaries—while capital spending (school building, books, ICT) remains low.
Dedicated financing mechanism
Without a dedicated and protected education financing mechanism, long-term sustainability remains doubtful.
There is also the issue of capacity. Many of the institutions tasked with implementing the current reforms suffer from inadequate manpower, poor training, and limited digital infrastructure. For instance, real-time data tracking of school attendance and enrollment—a key part of the DOTS plan—requires advanced systems and trained personnel that are currently in short supply.
Gabari, a United Nations Youth Parliament Ambassador, believes that Nigeria is not ready for such innovation for several reasons. He argued: “The administration is also talking about digital tracking systems to harness data for planning purposes. However, we should be mindful that these systems are new in our clime and are not yet integrated into the mainstream of our civil service operations or the State Universal Basic Education Boards (SUBEBs).
“The problem with innovations like these again is that we are back to square one. Where is the electricity to power the computer systems? Electricity is pivotal to every other sector because we need it to power the operations of small businesses, activities in our schools, among other things.”
Governance, a relay race
The Youth Parliament ambassador said development is not a one-day business. For it to take place, he added, there must be continuity in governance. He said, “It’s like a relay race where an incumbent leader must transfer the baton to the incoming one to continue. Nigeria has some of the best policies in the world, but as I said earlier, we are not concerned about continuity or leveraging on existing platforms.
“Incoming administrations often abandon existing projects, assuming a new system must replace them, regardless of merit. Like the proverbial saying that one should not throw the baby away with the bath water, the new government must look at what is not working well in an existing project and fix it, rather than jettisoning the entire thing and beginning afresh.
“It is only when our leaders develop the mindset of focusing on the implementation of existing projects, rather than insisting on the one initiated by the new administration for political expediency, that we will move forward. It’s more like playing politics with the country’s development.”
Finally, apart from legislative entrenchment of the policies, experts say stronger coordination mechanisms must exist between federal and state governments. This could include performance-based grants that reward states for achieving specific education milestones, as well as formal compacts that commit governors to shared targets.
The administration must recognise that tackling the out-of-school children crisis is not just a social policy but a national security and economic development issue. Education should be treated as strategic infrastructure, as essential as roads, power, and defence.
Conclusion
The Tinubu administration has laid a promising foundation. Yet, unless the outlined reforms are institutionalised, adequately funded, and sustained across administrations, they risk joining the graveyard of abandoned policies.
Nigeria stands at a crossroads. The opportunity to lift millions of children out of poverty and ignorance is within reach — but only if the country moves from promise to practice, from pilot to permanence.
The cost of failure is not just educational — it’s economic, social, and existential. Will this administration be the one to finally break the cycle? Or will another generation of children be lost to promises not kept?
Nigeria’s health sector is undergoing a quiet but determined transformation. Over the past two years, a mix of policy reforms, targeted investments, and strategic collaboration has begun to reshape the system. Amid reduced donor funding and evolving global health priorities, gains in primary healthcare, insurance coverage and system resilience are emerging. The country is steadily building the groundwork for a more responsive and self-sustaining health infrastructure, reports DELE ANOFI.
Nigeria’s steady advancement towards achieving Universal Health Coverage (UHC) is increasingly gaining international recognition. Time magazine recently named three Nigerian health professionals among its 100 most influential people in health: the Coordinating Minister of Health and Social Welfare, Prof Muhammad Ali Pate; Dr Ladidi Kuluwa Bako-Aiyegbusi, a senior official at the Ministry; and Dr Abasi Ene-Obong, a private sector innovator in genomics.
Prof Pate was recognised for leading the vaccination of over 12 million girls against the human papillomavirus (HPV), the rehabilitation of more than 900 primary healthcare centres (PHCs), and the launch of the “Know Your Numbers” campaign, which screened 10 million Nigerians for common health risks. Dr Bako-Aiyegbusi received acclaim for her pioneering work in tackling childhood malnutrition by fortifying widely consumed bouillon cubes with vital micronutrients.
By the third quarter of 2024, Nigeria had surpassed its targets on 31 out of 41 key health performance indicators. According to findings from the 2023 Demographic and Health Survey and the People’s Voices Survey, child mortality has declined by 16.7%, with rates dropping from 132 to 110 deaths per 1,000 live births since 2018. The country has also seen notable reductions in disease burden: diarrhoeal diseases have decreased by 40%, respiratory infections by 30%, HIV prevalence by 12%, and malaria incidence by 5%.
These improvements have been largely attributed to sustained public investment in primary healthcare. Since 2019, more than N130 billion has been allocated to the Basic Health Care Provision Fund (BHCPF), including N31 billion disbursed in 2023 and N25.8 billion in 2024. An additional N32.8 billion has already been approved to support primary healthcare programmes in the first quarter of the 2025 fiscal year. The Ministerial Oversight Committee (MOC), which supervises the BHCPF, has held more meetings in the past 18 months than in all preceding years combined—an indication of improved governance and accountability in the sector. A core objective of the government’s health reform agenda is to ensure the presence of at least one fully functional PHC in every political ward, with plans to double PHC coverage by 2027.
There has also been progress in health insurance coverage. Enrolment rose by 11% in the past year, bringing the total number of Nigerians covered to 18.7 million. The long-term ambition remains the achievement of universal health coverage by 2030. While challenges persist, the data suggests that Nigeria is laying the groundwork for a more inclusive and resilient health system. The combination of strategic leadership, increased funding, and multi-sectoral collaboration is yielding measurable results—offering a path forward for sustained health system strengthening.
Under the Renewed Hope Agenda, Nigeria has intensified health sector reforms through a suite of strategic frameworks, including the National Health Renewal and Investment Initiative (NHRII), the Nigeria Health Sector Renewal Compact—signed between the Federal Government, all 36 State Governments, and development partners—and the Sector-Wide Approach (SWAp). These coordinated efforts aim to harmonise previously fragmented interventions and build a more integrated, efficient, and self-reliant health system.
At the tertiary level, 201 hospital projects have been completed and 179 sets of medical equipment procured. Workforce development is another critical area of focus. More than 2,400 new health professionals have been recruited, while 120,000 frontline health workers are undergoing retraining—over half of whom have already completed the process. To address the growing issue of medical brain drain and workforce shortages, enrolment quotas at health training institutions have been expanded.
Health insurance coverage for vulnerable populations is also advancing. Through the National Health Insurance Authority (NHIA), 1.8 million vulnerable Nigerians have been enrolled, providing them with access to essential health services and reducing out-of-pocket expenditure. In parallel, efforts to industrialise the health sector are gathering pace. A landmark $1 billion agreement with Afreximbank is supporting the expansion of local pharmaceutical manufacturing, with backing from five development finance institutions and more than 70 private firms. A beta-lactam antibiotics plant in Lagos is already operational, creating over 700 jobs. Global players such as Abbott and Siemens are planning local production ventures; while a $240 million Brazilian-funded generics manufacturing facility is currently in development.
Regulatory reforms are also underway to strengthen oversight and quality assurance. In a bid to streamline and safeguard organ and tissue transplantation services, the government has introduced new Standards and Guidelines for the Establishment and Coordination of Organ/Tissue Transplantation Services in Nigeria. All facilities involved in such procedures are now required to register and obtain licences from the National Tertiary Health Institutions Standards Committee (NTHISC). Additionally, a National Organ Transplantation Registry is being established to enhance transparency and accountability in the sub-sector.
The game-changing Basic Health Care Provision Fund
The Basic Health Care Provision Fund (BHCPF) continues to play a pivotal role in Nigeria’s pursuit of universal health coverage. With N130.8 billion committed over five years, the fund is strengthening the foundation of primary healthcare by supporting the establishment of at least one functional Primary Healthcare Centre (PHC) in every ward nationwide. In 2024 alone, N25.8 billion was allocated to support 8,809 facilities, with an additional N12.9 billion pending disbursement. The fund is distributed across four key agencies: the National Health Insurance Authority (NHIA) receives 48.75%, the National Primary Health Care Development Agency (NPHCDA) 45%, the National Emergency Medical Treatment Committee 5%, and the Nigeria Centre for Disease Control and Prevention (NCDC) 1.25%.
The results are tangible—higher enrolment in health insurance schemes, a reduction in disease burden, and expanded deployment of health workers in underserved communities. Strategic objectives include doubling the number of PHCs per ward by 2027 and achieving universal health coverage by 2030.
Ending AIDS by 2030: The NACA strategy
Between 2023 and 2025, the National Agency for the Control of AIDS (NACA) made considerable progress despite diminishing donor contributions. More than 1.63 million Nigerians—representing 86% of people living with HIV—are now receiving treatment. Women comprise nearly 60% of those reached, prompting gender-responsive interventions at the community level.
NACA’s strategy is rooted in community leadership, decentralised care, and greater reliance on domestic resources. Public campaigns, including those marking World AIDS Day 2023, underscored the role of civil society and the need to reduce stigma. The launch of the National Strategic Framework (2023–2027) introduced a sustainability model with a business-oriented focus. A key milestone is the establishment of the N62 billion HIV Trust Fund of Nigeria, in collaboration with the Nigerian Business Coalition Against AIDS. The Federal Government further allocated N10 billion for HIV-related commodities in 2025, of which N4.8 billion is earmarked for scaling up treatment.
NACA is also integrating HIV services within broader health systems in 12 states, with plans to extend to 25. By 2025, local manufacturing of HIV commodities—including test kits, condoms, and antiretrovirals—is expected to commence. Notably, efforts to prevent mother-to-child transmission (PMTCT) are gaining ground, with over four million pregnant women screened for HIV in 2023. A newly established Acceleration Plan Committee is leading efforts to close the treatment gap for children.
Drug safety and local manufacturing: NAFDAC’s reform agenda
The National Agency for Food and Drug Administration and Control (NAFDAC) has intensified its reform agenda to enhance public health safeguards and regulatory effectiveness. A major achievement is the World Health Organization’s prequalification of the Central Drug Control Laboratory in Lagos, enabling the certification of Nigerian-made medicines for export.
Crackdowns on counterfeit pharmaceuticals have yielded substantial results, with over N1 trillion worth of fake drugs seized from major markets. To streamline drug distribution and improve oversight, the agency is implementing new regulations—including a ban on alcoholic beverages in sachets, which has faced resistance—and relocating vendors to Coordinated Wholesale Centres, starting in Kano.
As part of efforts to tighten import controls, Cotecna Inspection Services has been appointed as a third-party inspection agent for pharmaceutical imports from India. In parallel, NAFDAC is supporting local pharmaceutical innovation, including regulatory backing for Nigeria’s first glucometer and diagnostic strip production facility. The agency is working towards achieving WHO Maturity Level 4 certification, positioning Nigeria as a regional leader in pharmaceutical regulation and safety.
Health insurance reform: NHIA’s inclusive model
During the period under review, the National Health Insurance Authority (NHIA) undertook significant reforms to expand access and inclusivity within Nigeria’s health insurance landscape. As of early 2025, enrolment figures had risen to 19.2 million Nigerians at both national and sub-national levels—marking a 14% increase from the 16.7 million recorded at the start of the current administration. In February 2025, the NHIA revised key provider reimbursement mechanisms. Capitation payments—fixed annual sums paid to healthcare providers per insured patient—were increased by 93% compared to December 2023. Meanwhile, fee-for-service payments, which reimburse providers for individual medical services, saw a staggering 378% rise over the same period. These adjustments reflect a strategic effort to improve provider incentives and service quality.
To bolster coverage for vulnerable populations, the agency operationalised the Vulnerable Group Fund. This intervention complements the implementation of the 2023 Operational Guidelines, which aim to harmonise insurers under a single regulatory framework. Central to the NHIA’s forward strategy is the ambition to enrol 50 million Nigerians, with a strong focus on the informal sector—where coverage currently remains under 1%. The NHIA has also rolled out impactful access-driven initiatives. Among them is the National Medicine Supply Initiative, launched in partnership with 12 local pharmaceutical manufacturers. The scheme introduced 33 NHIA-branded generic medicines, projected to reduce drug prices by up to 50%. Currently piloted in seven states and the Federal Capital Territory, the initiative is poised to improve the availability of affordable, quality medicines nationwide.
Moreover, NHIA programmes now offer free caesarean sections in 172 high-risk Local Government Areas, have treated 1,600 women under the Fistula-Free Programme, and provided emergency obstetric care to nearly 3,000 women. A N32.8 billion first-quarter allocation is sustaining coverage across 8,000 healthcare facilities.
Strengthening disease preparedness: The NCDC response
The Nigeria Centre for Disease Control and Prevention (NCDC) has continued to reinforce the nation’s capacity to respond to public health emergencies. During recent outbreaks of cerebrospinal meningitis in Jigawa, Yobe, and Katsina States, the agency led a nationwide response effort, which included the delivery of over one million doses of the Men5cv vaccine. The NCDC activated Emergency Operations Centres in response to multiple outbreaks, while deploying expert teams, essential supplies, and technical support to affected regions. In collaboration with international partners including WHO, UNICEF, and Gavi, the agency expanded diagnostic capacity, improved sample collection, and intensified public sensitisation campaigns.
Efforts to improve routine immunisation also gained momentum, with the introduction of vaccines for Human Papillomavirus (HPV) and malaria. Coordinated advocacy and strengthened partnerships with state governments have improved disease surveillance and boosted the resilience of Nigeria’s emergency health infrastructure.
Reinforcing the fight against HIV, TB and Malaria
Despite diminishing international support—particularly from USAID—Nigeria has demonstrated renewed commitment to tackling its most pressing infectious diseases. The Federal Government earmarked an additional N300 billion for the health sector in 2025, including N10 billion for HIV treatment. This investment targets an additional 100,000 individuals and accelerates progress towards achieving the UNAIDS 95-95-95 targets.
In the fight against tuberculosis, focus has shifted to improving early diagnosis and detection, particularly in light of rising drug-resistant strains. Innovative domestic financing mechanisms are being explored to address funding shortfalls. A notable intervention came from the First Lady, Senator Oluremi Tinubu, who, in her role as Global TB Champion, contributed N1 billion through her Renewed Hope Initiative (RHI) in 2024 to bolster national efforts.
On the malaria front—where Nigeria bears 27% of the global disease burden—the government has committed N231.73 billion for 2025, with N41 billion specifically allocated for malaria vaccine procurement. Following successful pilot introductions in Kebbi and Bayelsa States, the vaccine rollout is expected to expand to 17 additional states by year’s end.
Immunisation breakthroughs and vaccine access
Nigeria has made significant progress in immunisation, driven by strong political will and robust international support, particularly through the National Primary Health Care Development Agency (NPHCDA). A major milestone was the phased introduction of the RTS, S malaria vaccine in Bayelsa and Kebbi States—a critical intervention in combating a disease that still claims nearly 200,000 Nigerian lives annually.
Parallel efforts to introduce the HPV vaccine for girls aged 11 to 12 have reached nearly five million children across 15 states, thanks to effective grassroots mobilization and the involvement of traditional institutions and civil society actors. Nigeria also became the first country to receive over one million doses of the MenFive vaccine, which protects against multiple strains of meningitis, marking another immunisation landmark. These efforts are backed by a N303 billion Health System Strengthening (HSS3) grant, aimed at reaching 1.8 million zero-dose children through enhanced routine immunization. Key enablers include solar-powered cold chain equipment and upgraded vaccine distribution infrastructure. On the regulatory front, the revision of the National Vaccine Research and Development Plan signals renewed commitment to local vaccine production.
Collaborations with Gavi, WHO, and UNICEF have further reinforced Nigeria’s immunization ecosystem, enabling access to critical vaccines and fostering long-term resilience. However, a $430 million annual financing gap persists, underscoring the urgent need for sustainable, domestic funding mechanisms.
Preventive care and immunisation
Preventive healthcare is gaining momentum nationwide. Expanded immunization campaigns have delivered millions of doses of measles, tetanus-diphtheria, and HPV vaccines. HIV prevention and treatment services are now offered at over 40,000 health facilities, while cancer care is being scaled through international partnerships, new treatment centres, and the rollout of a national cancer registry.
Through the Sector-Wide Approach (SWAp) framework, donor funds are now more effectively coordinated. Flagship initiatives like HOPE and HOPE-PHC aim to reach over 40 million Nigerians, focusing on improved governance, digital health tools, and evidence-based health interventions.
Strengthening cancer control
In the past two years, Nigeria has intensified its battle against cancer through a multi-pronged strategy centred on prevention, early detection, treatment access, and research. The National Institute for Cancer Research and Treatment (NICRAT), in collaboration with the Federal Government and the Nigeria Sovereign Investment Authority (NSIA), is spearheading the establishment of six Centres of Excellence and six preventive oncology centres—one in each geopolitical zone—to bring screening and diagnosis closer to communities and promote early intervention.
Preventive strategies have expanded, with the HPV and hepatitis B vaccines now integrated into the national immunisation schedule to help reduce cervical and liver cancer cases. Efforts to build a robust national cancer registry are also underway, aimed at strengthening data-driven policy and resource allocation. Support for vulnerable populations is growing. The Cancer Health Fund has been scaled up, with N1 billion allocated for cancer care in the 2025 budget—including childhood cancers. Public-private partnerships are proving transformative, with collaborations involving AstraZeneca, Roche, and Pfizer helping to cut treatment costs and enhance diagnostic access.
Cancer infrastructure is expanding nationwide, with over 1,200 healthcare professionals trained to deliver quality care. NICRAT is also driving forward cancer research through initiatives like the SINCCAR project and partnerships with global health institutions. A $250 million private-sector-led Cyclotron hospital is set to be built in Abuja—poised to revolutionize cancer treatment in Nigeria and across the continent. Meanwhile, advocacy by the Nigerian Cancer Society is increasing public awareness and building momentum for greater investment in cancer control. While challenges remain, the response is gaining traction—anchored by political commitment and multi-sectoral engagement.
Responding to the Japa challenge
Confronted with the wave of health worker emigration—popularly termed the ‘Japa syndrome’—Nigeria has introduced a suite of workforce retention measures. A high-level committee was tasked with resolving industrial disputes, enhancing remuneration, and creating enabling work environments. The National Health Workforce Migration Policy offers a strategic approach to ethical migration management, talent retention, and diaspora engagement. Infrastructure investments—especially in the revitalization of over 8,000 primary healthcare centres—are designed to make workplaces more attractive for medical professionals.
Yet, the challenge endures. Issues such as unpaid allowances, policy inconsistencies, and poor facilities continue to fuel the brain drain. Bridging this gap remains a critical priority if Nigeria is to sustain its healthcare reforms.
Policy and programmatic innovations
Over the past two years, Nigeria has launched a flurry of reforms under the Health Sector Renewal Initiative, which includes the Nigeria Health Sector Renewal Compact and the Four-Point Agenda. The Compact—signed by the Federal Government, 36 state governments, and development partners—marks a unified commitment to systemic transformation.
Among the key reforms: Executive Order on Local Drug Production: Removes tariffs on pharmaceutical machinery and raw materials, streamlining manufacturing. NHIA Expansion Strategy: Health insurance enrolment has grown from 16 million to 18.7 million, supported by capitation reviews and closer collaboration with state schemes. Safe Motherhood Guidelines: New protocols such as the Calibrated Drape and Labour Care Guide are targeting 7 million pregnant women and 6 million new-borns annually. Free Caesarean Section Programme: Offers life-saving surgeries at no cost in NHIA-accredited facilities. Dialysis Cost Reduction: A 20% decrease in dialysis charges across federal hospitals in eight states is easing burdens on kidney patients. Maternal Mortality Initiative (MAMII): Provides free maternal services to reduce pregnancy-related deaths. NCD Strategies: New national strategies for hypertension, tobacco control (2024–2028), and task-sharing in care delivery are being implemented. Infectious Disease Control: Updated strategies for HIV/AIDS, hepatitis, and STIs were introduced in late 2023.
Health governance and transparency
Accountability is emerging as a cornerstone of Nigeria’s health reforms. In October 2024, the government invited global health watchdogs—including the International Atomic Energy Agency (IAEA), WHO, and the International Agency for Research on Cancer (IARC)—to evaluate its response to non-communicable diseases. The Impact Review Mission Team conducted a comprehensive nationwide assessment, yielding recommendations that are already shaping program adjustments.
In addition, new partnerships with institutions such as the Mayo Clinic, Milken Institute, Syndicate Bio, Phillips Foundation, and St. Jude Global have strengthened capacity in research, diagnostics, and service delivery. Importantly, anti-corruption agencies and civil society organizations are now part of monitoring and fund-tracking mechanisms, marking a shift toward greater transparency. A pivotal move came with the inauguration of 774 Health Fellows by President Bola Tinubu—an initiative led by the Coordinating Minister for Health—to oversee the construction and activation of 8,800 new primary healthcare centres nationwide.
While gaps persist in workforce retention, infrastructure, and equitable access, the transformation of Nigeria’s health sector is undeniable. With foundational reforms in motion, expanded service delivery, and enhanced governance, the sector is poised for sustainable growth. Anchored by political resolve, international collaboration, and a commitment to transparency, Nigeria is advancing steadily toward its vision of universal health coverage and global competitiveness in healthcare. The groundwork laid since 2022 could very well define the trajectory of a healthier, more resilient Nigeria.
In the Federal Capital Territory (FCT) Abuja, the price of shelter has become a ruthless competitor in the race for survival. The FCT, a symbol of planned urban development and serenity, is fast becoming a city where decent housing is slipping beyond the reach of average earners. GBENGA OMOKHUNU, NICHOLAS KALU and JOSHUA OBOH explore how Abuja residents are navigating the rent burden in the FCT.
From the city centre to its far-flung suburbs, residents of the FCT are caught in a punishing cycle of annual rent hikes, forced relocations and shrinking options. For many, securing a roof over their heads now feels like a battle, where landlords hold all the power and tenants are left clinging to hope. Most times, tenants have to endure the decrepit conditions as nothing is often done to address issues concerning deterioration of the houses, including amenities and other facilities necessary for good living. Residents have continued to groan under the circumstances.
The indiscriminate hike in rent in the Federal Capital Territory (FCT) has made decent accommodation difficult, especially for low-income earners.
House rent in most locations in the country’s capital has increased by over 50 per cent in recent times despite the economic challenges Nigerians experience daily.
Concerns by residents over the indiscriminate increase in the cost of house rents by landlords in the FCT have heightened.
Tenants have recounted how it is becoming increasingly tough for them to meet up with their obligation of paying annual rent, accusing landlords of increasing rent at will.
Abuja’s housing crisis is a pressing issue. Residents struggle to cope with the high cost of living and scarcity of affordable accommodation.
The city’s rapid population growth of approximately eight per cent annually has created a significant demand for housing, resulting in a substantial housing deficit.
Abuja accounts for 10 per cent of the country’s overall housing shortage, with an estimated 1.7 million housing units needed.
Many residents are forced to live in poor conditions due to the lack of affordable housing options.
Landlords, driven by the need to cover their expenses and maintain their standard of living, have resorted to charging exorbitant rents. A two-bedroom apartment in the outskirts of Abuja such as Karu, Nyanya, Lugbe, Kubwa and Apo, now commands an average rent of between 800,000 and 1.5 million naira per year.
However, these figures pale in comparison to the sky-high rates demanded in posh neighborhoods such as Asokoro, Maitama, Garki, Wuse, Jabi and Utako.
For most landlords, rental income is their primary source of revenue, which they rely on to cover their expenses and maintain their livelihoods.
However, when their rental income no longer suffices to meet their immediate needs, they are left with no choice but to raise the rent. It becomes a vicious cycle that ultimately burdens those who are already financially strained.
The implications of the rising cost of rent are far-reaching. Families and individuals who are already struggling to make ends meet find themselves trapped in a cycle of poverty. Affordable housing becomes a distant dream, forcing many to settle for sub-standard living conditions or resort to overcrowded and inadequate accommodation.
Exorbitant rental costs make it difficult for low-and moderate-income earners to afford decent housing. Despite the housing shortage, many high-end properties in the city centre remain unoccupied, with rents that are expensive for most residents.
The Senate has proposed a bill to regulate rent payments, limiting advance payments to three months. Experts advocate for increased investment in affordable housing, public-private partnerships and community land trusts. Some lawmakers suggest imposing property taxes on unoccupied high-end properties to encourage occupancy and generate revenue.
A real estate agent, Mr Babatunde Ore said: “A two-bedroom apartment in a decent neighbourhood can cost upwards of N5 million per annum in the city, while in the satellite towns it costs like N1.5 to N2 million.
The high demand for housing, fueled by the city’s growing population and limited supply has created fertile ground for exploitative landlords and property developers.
As rents continue to soar, many residents are forced to seek alternative accommodation, often in informal settlements or on the streets.
Homelessness is a growing concern in the FCT, with many individuals and families struggling to access necessities such as shelter, sanitation and healthcare.
Findings showed how many youths, children, and the elderly loiter around abandoned buildings and under bridges. Many of them have either been evicted by their landlords or cannot afford to secure decent accommodations.
A good example of such places is the Mabuchi, Banex, Berger Bridges and a seven-storey building opposite the NNPC Filling Station, Wuse Zone 1 in the FCT have become shelters for many homeless residents.
Abuja Review observed that in Area One in Abuja Municipal Area Council, several families take shelter in some uncompleted buildings without doors, or windows and having just sacks to keep the rooms enclosed.
One of the residents, a father of four, Mr. Johnson Ona told Abuja Review: “This is where I live with my family. The condition is not encouraging, but this is the best we can afford for now. Things are not easy since we were driven away from our accommodation in Kubwa.”
A civil servant who identified himself as John said there were many houses in the city with no one occupying them because of high rents. “The government should make policies that will stop this trend; houses should not be empty when many people do not have houses,” he said.
A banker, who pleaded that his name be not mentioned because of personal reasons, said it is inhuman to increase the rent on a house that was built many years ago because of the economic situation today.
He said: “As a tenant, I have received terrible treatment from my landlord who does whatever he likes.
“The government should be able to regulate the arbitrary increase in house rents; if the government can put a benchmark on rents, it will help the residents.”
A cab driver, Ojo Omoloba said everything in the country is very expensive, adding that house owners were also trying to survive the hard times.
Omoloba said: “I decided to live with my friends so that we can jointly pay the rent of N400, 000 every year.
“This is the only way I can survive in Abuja. I appeal to the government at all levels to look into the hardship people are experiencing and address it; it is becoming unbearable.”
A student, Emeka Onu expressed dissatisfaction with the situation, adding that no average Nigerian was having it easy.
“The situation is very bad and has rendered many people homeless because they cannot afford to pay rent in the city,” he said.
The FCT has experienced rapid urbanisation and population growth in recent years, leading to an increased demand for housing. This growth has put pressure on the existing housing stock, leading to high rents and a shortage of affordable housing options.
According to experts, the housing supply in the FCT has not kept pace with the growing population, leading to a shortage of affordable housing options. This shortage has driven up rents, making it difficult for low- and middle-income households to access decent housing.
The capital has become a magnet for people from all parts of the country seeking better opportunities. While the influx has contributed to the economic growth of the territory, it has also put pressure on the housing market, leading to high rents and a shortage of affordable housing options.
The consequences of high rents and homelessness in the Federal Capital Territory are far-reaching and devastating, affecting not only individuals but also broader society.
Many residents are forced to live in squalid conditions, exposed to health risks and vulnerable to crime and exploitation.
The failure to address the housing crisis can lead to social unrest, political instability and a loss of faith in the government. As the housing crisis persists, frustration and anger among the affected population can grow, leading to increased protests, activism and political polarisation. Moreover, the government’s apparent inability to address the crisis can erode trust in institutions and undermine democracy.
Experts have suggested a multifaceted approach that addresses the root causes of the problem.
This housing crisis has also led many to prostitution and involvement in crimes. A disproportionate number of sex workers live in poverty. Sex workers in the FCT identified poverty, unemployment and insufficient financial resources as major barriers to housing. Poverty often leads to living in inadequate and unsafe housing.
To have a lasting solution to the housing crisis in the country’s capital, the FCT Minister, Nyesom Wike, alongside Area Council chairmen are focusing on developing satellite towns in Abuja, including providing infrastructural facilities and affordable/social housing.
This initiative aims at improving living standards, reducing pressure on the capital city and encouraging migration away from the city centre, ultimately driving property development in these areas.
Reacting to the development, Wike, in an interview said the FCT administration is actively working to improve living standards and provide basic amenities in the six area councils.
He said the initiatives aim not only at improving the living conditions in the satellite towns but also to address the challenges of urbanisation and urban congestion in the capital city.
The minister reiterated the administration’s commitment to extending development beyond the city centre to the satellite towns, echoing President Bola Ahmed Tinubu’s consistent directive.
“The emphasis Mr President has always made is that we should not only concentrate in the cities. We should take development to the satellite towns. The improved connectivity would make it unnecessary for people to relocate to the city. The short travel time to the city, facilitated by the road network, is expected to encourage people to build homes in the areas, offering a more affordable alternative to city living and fostering economic growth in the communities.
“With this road being done, you don’t need to stay in the city. That’s what the road network brings about. It will open up the entire place. People would like to build houses here instead of staying in the city that appears to be more expensive.
“I’m sure that most people will be looking out on how they can have a plot of land in these areas where they can develop so that they will stop paying rent in the city. So, this road will open up the two communities as well as the economy of the place,” he said.
All the area council chairmen, according to findings, are also giving the minister the needed support for mass housing in rural areas.
The President of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Mr Victor Alonge blamed the situation on population growth and high demand for housing in Abuja.
He said while the government cannot fix rent prices directly, it can create policies to support low-income earners.
“The government can provide land and support schemes for workers such as teachers, nurses and civil servants to afford decent accommodation,” he noted.
The Minister of Housing and Urban Development, Ahmed Musa Dangiwa announced the upcoming launch of the Renewed Hope Social Housing Programme, which aims at providing affordable homes for Nigerians across all income levels to address the housing crisis.
Dangiwa said the Federal Government plans to build 100 houses in each of the 774 local government areas which will total 77,400 homes.
“These houses will have schools, clinics, shopping areas and security posts. Someone earning N30, 000 can own a home and pay just N10, 000 monthly,” he explained.
He said 80 per cent of the homes will be sold at subsidised rates to workers, while the remaining 20 per cent will be given free to widows, orphans, the unemployed and other vulnerable groups.
He noted that the initiative is part of larger housing plans that include the development of Renewed Hope Cities in the FCT and six other states, as well as 250-unit estates in 12 state capitals across the country.
However, for many Abuja residents, these plans are still promises.
“We’ve heard these announcements before. Let’s hope that this particular promise will materialise for the reason that if nothing is done, many of us may soon have nowhere to live,” said Joy Omeni.
With Nigeria’s housing deficit widening against the backdrop of rapid population growth, the Federal Government’s Renewed Hope Cities and Estates Programme promises a bold step toward mass homeownership. However, while the initiative offers a glimmer of hope for many, significant gaps—ranging from affordability to access—continue to dim the dream of owning a home for millions of Nigerians, reports Assistant Editor OKWY IROEGBU-CHIKEZIE
As Nigeria races towards a demographic milestone, the urgency for solutions to its housing crisis has never been greater. With a population currently estimated at 223 million and projected by the World Bank to reach 262.9 million by 2030—and a staggering 401.3 million by 2050—the country is on course to become the third most populous nation on earth. This explosive growth, while rich with economic potential, also brings with it an acute demand for housing, infrastructure, and jobs.
Among the most pressing challenges is Nigeria’s yawning housing deficit, which has long plagued urban and rural communities alike. For a forward-looking administration, addressing this shortfall is not just a developmental necessity—it is a national imperative. In a bold move to tackle the crisis, President Bola Ahmed Tinubu launched the construction of the Renewed Hope Cities and Estates in February 2024. The flagship project kicked off with 3,112 housing units in Karsana, Abuja, and was swiftly followed by similar developments across the country. Encouragingly, tangible progress is already evident—not just in the bricks and mortar of housing units, but in the broader reforms aimed at overhauling the housing sector.
At present, 14 active construction sites are underway nationwide, accounting for a total of 10,112 housing units. As part of the Renewed Hope Estates initiative, 12 estates—each comprising 250 housing units—are under construction in 12 states, representing two from each geo-political zone: North-East: Yobe, Gombe; North-Central: Nasarawa, Benue; North-West: Sokoto, Katsina; South-East: Abia, Ebonyi; South-South; and Delta, Akwa Ibom. Together, these sites are expected to deliver 3,000 homes in the first phase alone.
Meanwhile, the government has rolled out plans for Renewed Hope Cities—larger, urban-style housing schemes—beginning with developments in the Federal Capital Territory (3,112 units), Kano (2,000 units), and Lagos (2,000 units). Additional projects are in the pipeline for Enugu, Borno, Rivers, and Nasarawa. The overarching goal is to establish at least one Renewed Hope City in every geo-political zone as well as in the FCT.
Significant strides have already been made, with a substantial number of units at the roofing stage. The Federal Ministry of Housing is working closely with developers to ensure that the projects are completed and inaugurated as scheduled. For instance, at the Abuja site, 1,000 housing units are nearing completion—requiring only plastering and internal finishing. According to industry analysts, these construction efforts have generated over 252,800 jobs, based on an average of 25 jobs per unit. These include both direct and indirect employment opportunities for Nigerians across the economic spectrum. From architects, civil engineers and surveyors to masons, carpenters, electricians, plumbers, steel fixers and welders—right down to security guards, labourers, concrete pourers, and site excavators—the Renewed Hope Cities and Estates initiative is not only providing shelter, but also serving as a powerful engine of economic revival. By harnessing the potential of the housing construction sector, the initiative is delivering meaningful work, lifting thousands off the streets, and laying the foundations for a more secure and equitable future.
Opening the door to home ownership
For many Nigerians, owning a home has long seemed like a distant dream—out of reach due to soaring property prices and prohibitive mortgage requirements. But recent reforms under the Renewed Hope Agenda are beginning to shift the narrative, offering more accessible pathways to home ownership for a broader cross-section of citizens. One of the most viable routes is through the National Housing Fund (NHF) mortgage loan, administered by the Federal Mortgage Bank of Nigeria (FMBN). Under this scheme, eligible Nigerians can secure housing loans of up to N50 million, repayable over 30 years at an affordable 6 per cent interest rate. This stands in stark contrast to the steep 18–23 per cent interest charged by most commercial banks.
What makes the NHF loan particularly attractive is the comparatively low equity requirement. Unlike commercial banks that may demand up to 30 per cent equity, the NHF requires just 10 per cent. For instance, a loan of N10 million would require only N1 million as upfront equity—a potentially life-changing difference for many working-class Nigerians. Another innovative product from the FMBN is the Rent-to-Own scheme. This initiative allows contributors to the National Housing Scheme to move into a home and begin paying for it in monthly, quarterly or annual instalments, over a 30-year period, at a modest 7 per cent interest rate—all without any initial equity. It’s a model designed for flexibility, dignity, and gradual empowerment.
Critics argue that prices are still out of reach for the very people the programme intends to support. For example, a one-bedroom apartment at the Renewed Hope City in Karsana, built under a Public-Private Partnership (PPP), is priced at approximately N22 million. In contrast, a similar unit under the Renewed Hope Estates, funded via government budgetary allocations, costs around N10 million.
In response to growing public scrutiny, the government has pledged further interventions to cushion the affordability gap. Plans are underway to establish a National Social Housing Fund (NSHF)—a bold move aimed at ensuring that low-income earners, the unemployed, the vulnerable and other underprivileged groups are not left behind in the quest for decent and dignified shelter. Ultimately, the evolving suite of options and reforms signals a renewed political will to democratise home ownership in Nigeria—bridging economic divides and enabling millions to finally call a house their home.
To further strengthen its commitment to inclusive housing, The Nation has learnt that a memo to the Federal Executive Council (FEC) and an Executive Bill to the National Assembly are currently in the works to establish a National Social Housing Fund (NSHF). The proposed fund is expected to draw from diverse sources, including annual budgetary allocations, philanthropic donations, corporate social responsibility contributions, and even voluntary donations from patriotic Nigerians. Insiders close to the administration affirm that President Tinubu is approaching Nigeria’s housing challenge with gravitas and a structured, deliberate strategy. They maintain that the President clearly recognises the urgency of the situation and is resolute in his mission to rekindle citizens’ hope in the possibility of affordable, accessible, and functional housing for all.
According to Dr Olayemi Rotimi-Shodimu, one of the Conveners of the Renewed Hope Housing Public-Private Partnership (PPP) initiative, the programme seeks to offer more than just shelter—it is designed to chart a clear policy direction and provide a structured roadmap for housing-sector PPPs in Nigeria. Beyond policy, the initiative is also engineered to facilitate stakeholder engagement, bringing together key players from across the spectrum—government officials, private sector investors, and international development partners—to foster deeper collaboration and attract sustainable investment into the sector.
At the heart of this reform effort is the Renewed Hope Social Housing Programme, which forms a crucial pillar of President Tinubu’s broader agenda for inclusive growth. The programme is targeted specifically at low-income earners, the unemployed, internally displaced persons (IDPs), and other marginalised groups, spanning both the formal and informal economic sectors. One of the most ambitious components of the programme is the construction of 100 housing units in each of Nigeria’s 774 local government areas, translating to a remarkable 77,400 homes. The government aims to deliver these within a one-year timeframe—a bold undertaking that underscores the scale of its ambition.
The Minister of Housing, Ahmed Dangiwa has revealed that the ambitious Renewed Hope Social Housing Programme will be financed through the Renewed Hope Infrastructure Development Fund (RHIDF). According to him, each estate under the initiative will be developed as a complete community, equipped with vital amenities such as a primary school, healthcare clinic, recreational spaces, police outpost, and a shopping mall—all designed to foster safe, dignified living. Speaking on the all-important issue of affordability, Dangiwa explained that 80 per cent of the homes will be sold to residents of the host communities, based on their ability to pay one-third of their monthly income. “Someone earning N30,000 monthly can pay just N10,000 to own a house,” he said, underscoring the administration’s commitment to housing access for everyday Nigerians.
The remaining 20 per cent of the homes, he added, will be allocated free of charge to vulnerable Nigerians, including widows, orphans, and those with little or no income. This component ensures that no one is left behind in the government’s drive to provide inclusive and equitable housing. Dangiwa also clarified that the Renewed Hope Social Housing Programme is the third leg of a broader housing agenda, which includes Renewed Hope Cities and Renewed Hope Housing Estates. These three components work in synergy to address different layers of housing demand—urban, peri-urban, and rural.
At present, Renewed Hope Cities are under development in seven locations, namely Abuja, Rivers, Lagos, Enugu, Nasarawa, Kano, and Maiduguri—each representing one of the six geopolitical zones plus the Federal Capital Territory. These are being executed through Public-Private Partnership (PPP) arrangements, combining public vision with private sector efficiency. In addition, the federal government plans to construct 250 housing units in two capital cities per geopolitical zone, totalling 12 cities under the Renewed Hope Estates scheme. Unlike the Cities, these Estates are being directly funded through the federal budget, with a clear intent to expand further in the coming fiscal year.
Yet, despite these bold strides, housing experts warn that Nigeria’s deficit—estimated in the tens of millions—cannot be closed through conventional funding models alone. To effectively bridge the gap, at least one million housing units must be built annually for the next 20 years. This, they argue, would require extra-budgetary innovations and sustainable financing mechanisms far beyond yearly allocations.
On funding and financial innovations
Building houses is not cheap—especially not at the scale required to dent Nigeria’s housing deficit. But under President Tinubu’s Renewed Hope Agenda, the Federal Ministry of Housing and Urban Development is deploying creative, multi-layered funding strategies to make decent shelter a reality for all. According to Dangiwa, the financing model for the Renewed Hope Housing programme stands on three robust legs: budgetary allocation, public-private partnerships (PPPs), and financial engineering to bridge affordability gaps. “We understand that traditional budgetary channels alone are inadequate. So we’ve embraced diverse strategies to achieve results.”
The first strategy is direct budgetary provision. The Ministry is funding 12 Renewed Hope Estates across the country through the N50 billion 2023 Supplementary Budget, with an additional N27.2 billion allocated in the 2024 budget to complete critical infrastructure. Plans are already underway to scale the programme further in the 2025 fiscal year to cover more states. The second—and perhaps more transformative—approach is the deployment of Public-Private Partnerships. For instance, the three Renewed Hope Cities currently under development in Abuja, Lagos, and Kano are being delivered through a consortium of private developers who are expected to build up to 100,000 housing units nationwide.
Here’s how it works: the private developers source land and secure construction finance, while the government provides the enabling environment and off-taker guarantees. One of the standout examples is the Karsana Renewed Hope City, where the Ministry facilitated a N100 billion Bankable Off-taker Guarantee through the Federal Mortgage Bank of Nigeria (FMBN). This singular intervention enabled developers to mobilise over N40 billion in construction financing—an unprecedented feat in Nigeria’s housing history. To further enhance affordability, the government has introduced a cross-subsidy model. Under this model, homes in the Renewed Hope Cities are offered at commercial rates to high-income buyers, while a significant percentage is sold at concessionary prices to low- and middle-income Nigerians, particularly members of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC). This strategy fosters integrated communities while ensuring that the poor are not priced out.
Still, the challenges are enormous. Experts estimate that to close Nigeria’s housing gap, the country must build 550,000 units annually for the next 10 years—a task requiring a whopping N5.5 trillion per annum. Clearly, PPPs alone are not a silver bullet. This disparity is starkly evident in the pricing. A one-bedroom unit at the Renewed Hope City in Karsana, developed under the PPP model, goes for about N22 million. In contrast, a similar unit in the Renewed Hope Estates, which are budget-funded, costs just N10 million. What accounts for this massive difference? Through this thoughtful blend of policy realism, financing innovation, and social inclusion, the Tinubu administration is trying to break the long-standing jinx of affordable housing in Nigeria.
Some may ask: Why does the government continue to pursue Public-Private Partnerships (PPPs) in housing? The answer lies in a delicate but deliberate balancing act between equity and efficiency. As Dangiwa explained, the federal government has a dual obligation: to catalyse private sector involvement in housing delivery while ensuring that every Nigerian—regardless of income—has access to decent shelter. While the PPP-driven Renewed Hope Cities cater primarily to high- and middle-income earners who can bear market-driven prices, the budget-funded Renewed Hope Estates are explicitly designed to meet the needs of lower-income Nigerians. The result is a more inclusive housing ecosystem—one that reflects both economic diversity and social responsibility.
Still, government is acutely aware that PPPs alone cannot bridge the nation’s vast housing deficit. The numbers speak for themselves: Nigeria needs to construct at least 550,000 units annually for the next decade—a feat that requires a staggering N5.5 trillion per year. By contrast, the current N50 billion annual housing budget barely scratches the surface. To change this narrative, the Ministry has launched a bold advocacy campaign, successfully engaging the National Assembly. As a result, there is now broad legislative backing for a significant increase in the housing budget. Beginning with the 2025 budget cycle, the Ministry aims to secure at least N500 billion annually. This expanded funding would enable the scaling of the Renewed Hope Estates programme to all 36 states, doubling housing targets from 250 to 500 units per state—a critical step toward national coverage.
In a strategic move that signals Nigeria’s intent to deepen international cooperation, the Ministry is finalizing a ground-breaking partnership with Shelter Afrique Development Bank (ShafDB)—a Pan-African housing finance institution in which Nigeria is the largest shareholder. The first phase of this collaboration will see an investment of N50 billion to deliver 5,000 housing units. This marks the first time the Nigerian Ministry of Housing and Urban Development will directly access financing from ShafDB—a milestone Minister Dangiwa called “another Renewed Hope First.”
Beyond attracting international finance, the Ministry is working to optimize the performance of its key housing agencies—particularly the Federal Mortgage Bank of Nigeria (FMBN) and the Federal Housing Authority (FHA). Under the Renewed Hope Agenda, FMBN has emerged as a vital engine for affordable housing. Between May 2023 and April 2025, the Bank disbursed N59.3 billion in housing loans, delivered 2,465 housing units, and created over 61,625 decent-paying construction jobs across the country. Notably, FMBN has supported 17,980 Nigerians with single-digit interest loans, including home renovation loans, rent-to-own schemes, and the innovative Cooperative Housing Development Loan and Individual Construction Loans.
The bank’s flagship intervention, however, remains the N100 billion Bankable Off-taker Guarantee for the Renewed Hope Cities—an unprecedented move that de-risks private investments and boosts developer confidence. In addition, FMBN recently launched a Rent Assistance Product, designed to ease the financial burden on renters by allowing them to pay rent in monthly instalments over a year, a critical innovation in a country where yearly rent demands often push citizens into financial distress. Meanwhile, the Federal Housing Authority has quietly but efficiently negotiated free land donations from 20 state governments, a gesture that drastically reduces development costs. In Phase One, the FHA is set to begin construction of 200 Renewed Hope Houses across 17 states, setting the stage for broader interventions in subsequent phases.
While the supply of housing remains central to the Renewed Hope Agenda, Minister Ahmed Dangiwa is clear-eyed about another foundational priority: improving Nigeria’s land administration system. The objective, he said, is to create a land governance framework that ensures clarity, security, and accessibility in land ownership and transactions. These are the bedrocks upon which investor confidence and long-term national development can rest. Yet even as policy reforms are underway, questions continue to swirl around the true affordability of government-delivered housing, especially for Nigeria’s low-earning citizens. Surveyor Ibikunle Ajao is one of those calling for a deeper interrogation of Nigeria’s housing economics. He takes issue with the popular narrative that sees housing units priced at N10 million per room as attainable. He pointed out that the real problem lies not just in price tags, but in the structural roots of housing inflation—including what he termed “dead capital,” the prohibitive cost of land and building materials and the absence of innovation in local construction technologies.
Why isn’t the government investing heavily in research to bring down construction costs?” He painted a stark picture: a university graduate earning N120,000 monthly—N1.44 million annually—who must pay for rent, transportation, food, and health care. “Tell me,” he asked rhetorically, “how many years would it take for such a person to save N10 million to buy a single room?”
An estate surveyor and Chairman of the Board of Trustees at the Society for Professional Valuation (SPV), Mr. Sola Enitan, agrees that the housing deficit cannot be solved by government alone. He advocates a multi-pronged approach—one that harmonizes policy reform, private sector engagement, and international financing. Also weighing in is Toye Eniola, Executive Secretary of the Association of Housing Corporations of Nigeria (AHCN). He took a more nuanced stance on the question of affordability, suggesting that N10 million for a one-room apartment cannot be universally classified as expensive or cheap without context. “Affordability depends on several indices—location, quality of finishing, building materials, and target buyers,” Eniola explained. “A one-bedroom apartment in Victoria Island, Lagos, cannot be priced the same as one in Ikorodu.”
However, when viewed through the lens of Nigeria’s working class—especially civil servants earning the N70,000 minimum wage—the numbers become sobering. Eniola concluded that for the lowest earners, the current housing price point is “simply unaffordable.”
While the Renewed Hope Housing Programme signals a bold step toward tackling Nigeria’s housing deficit, concerns persist over its delivery, affordability, and long-term impact. Developer Ezenwa Udoji described the programme as visionary, crediting it with the potential to generate jobs and revitalise local economies. He noted that the incorporation of public-private partnerships and infrastructure in housing estates is commendable. However, he warned that success hinges on greater transparency, accountability, and fairness. Udoji advocated for citizen engagement, real-time updates, and strict enforcement of quality standards to restore public trust and prevent corruption.
Expanding the conversation, Kunle Awolaja, President of the African Real Estate Society (AFRES), argued that bridging Nigeria’s 25 million housing deficit demands a multi-pronged approach. He called for policy reforms, sustainable building innovations, streamlined land processes, and expanded mortgage options, including micro-mortgages and rent-to-own schemes. Awolaja also stressed the importance of digitising land records, decentralising urban growth through satellite cities, and investing in local building materials. Both experts agree: while Renewed Hope lays a promising foundation, only a holistic, transparent and inclusive framework will ensure its success. For now, Nigerians are watching — hopeful, yet cautious.
The directive on exchange rate unification to reduce market arbitrage originated from President Bola Tinubu. Two years on, these policy reforms have significantly narrowed the gap between official and parallel market rates. Yet, occasional volatility triggered by foreign exchange scarcity remains a challenge that must be addressed to sustain the benefits of these reforms. Complementary policies—such as bank recapitalisation, the introduction of an electronic FX matching platform, a new FX code, and monetary policy tightening aimed at price stability—are empowering the Central Bank of Nigeria (CBN) to maintain a resilient financial system and steer the economy toward sustainable growth, writes Assistant Editor COLLINS NWEZE.
The financial sector continues to be a key driver of Nigeria’s economy. Despite facing multiple challenges from both domestic and global pressures, the sector has emerged stronger and more resilient during the first two years of President Bola Tinubu’s administration. A crucial factor for sustaining market confidence is increasing liquidity, which depends largely on boosting foreign exchange earnings and supporting the manufacturing sector.
Over this period, the Central Bank of Nigeria (CBN), under Governor Olayemi Cardoso, has reinforced its commitment to helping the government achieve its economic goals through a range of reforms. These include unifying exchange rates, improving payment systems, and ongoing recapitalization of banks. A major milestone was the consolidation of multiple exchange rates into the Investors and Exporters (I&E) forex window, a reform championed by President Tinubu.
As a result, applications for medicals, school fees, Business Travel Allowance, Personal Travel Allowance, and SME transactions are now processed exclusively through the I&E window. The foreign exchange market also saw the return of the “Willing Buyer, Willing Seller” model at the I&E window. For example, the naira currently trades at N1,599 to $1 on the official window and N1,605 to $1 on the I&E window—reflecting a minimal N6 difference between the two rates. Shortly after the naira unification policy was introduced, the market faced liquidity challenges that pushed the exchange rate above N1,900 to $1. However, increased dollar inflows have since stabilized the market, restoring confidence in the currency.
While these reforms have made significant progress, the Central Bank of Nigeria (CBN) continues to reassure both domestic and international investors of its commitment to rebuilding Nigeria’s economic buffers and enhancing resilience. To address the urgent challenge of inflation, the CBN took decisive action by raising the Monetary Policy Rate by 875 basis points to 27.5 percent in 2024—an important step aimed at containing inflation and restoring macroeconomic stability.
In the foreign exchange market, over $7 billion in unfulfilled commitments, coupled with a fragmented FX regime featuring multiple exchange rates, had created opportunities for arbitrage. The apex bank not only cleared these backlogs but also implemented transparent measures to prevent their recurrence. Over the two-year period, Fitch Ratings upgraded Nigeria’s long-term foreign-currency issuer default rating (IDR) from negative to stable. This upgrade signals improved prospects for attracting foreign investment, accessing international borrowing at better rates, and boosting investor confidence. Fitch further commended the government’s commitment to policy reforms introduced since June 2023, including exchange rate liberalisation, monetary policy tightening, ending deficit monetisation, and the removal of fuel subsidies.
Recapitalisation of banks
The ongoing recapitalisation of banks brings several benefits to the economy, including enabling lenders to take bigger risks by banking underserved markets.On the recapitalisation, Cardoso said: “This strategic move ensures that banks are well-capitalised, enabling them to take on greater risks, particularly in underserved markets. With stronger capital bases, banks can provide more loans and financial products to Micro, Small and Medium Enterprises (MSMEs), rural communities, and other vulnerable segments that have previously struggled to access formal financial services.”
The CBN announced on 28 March 2024 a two-year bank recapitalisation exercise, which commenced on 1 April 2024 and is expected to end on 31 March 2026. The recapitalisation plan requires minimum capital of N500 billion, N200 billion, and N50 billion for Commercial Banks with International, National, and Regional licences respectively.
Group Managing Director of United Bank for Africa, Oliver Alawuba, said the ongoing bank recapitalisation policy is both timely and essential in positioning the financial system to meet the demands of a growing and globally competitive economy. He added that the initiative is expected to boost the resilience of the banking sector by strengthening its capacity to withstand economic shocks such as inflation, currency volatility, and global geopolitical disruptions. “The policy will also place Nigerian banks on a stronger footing to finance the country’s long-term economic transformation, including funding of large-scale infrastructure and industrial projects.
“The recapitalisation policy goes beyond regulatory compliance. It is a forward-looking strategy aimed at equipping Nigerian banks to operate at the scale and sophistication required by a trillion-dollar economy. The move would enhance the sector’s ability to support both traditional economic drivers such as oil and gas, agriculture, and manufacturing, as well as emerging sectors like fintech, green energy, and infrastructure development,” he said. Alawuba reiterated that Nigerian banks need adequate capital buffers to meet the evolving demands of these sectors, otherwise, industry cannot effectively rise to the challenge.
According to Alawuba, the depreciation of the naira remains a significant challenge for banks in their efforts to raise new capital. He explained that investors are concerned about exchange rate volatility and how it might affect the value of their investments at the time of exit. “The Central Bank really needs to build a lot of confidence in that area by boosting liquidity in the foreign exchange market. However, we have seen a gradual restoration of investor confidence in the economy, and that will continue to help allay such fears,” he said.
Alawuba further noted that banks have made considerable progress in delivering greater digital value to customers and improving the convenience of accessing banking services. Nevertheless, he acknowledged that issues such as cybersecurity breaches and incidents of fraud have affected public trust in the banking sector and remain areas requiring urgent attention.
Recapitalisation comes with benefits
Cardoso said the recapitalisation policy not only strengthens financial stability but also serves as a catalyst for inclusive growth. “By enabling banks to extend more credit to MSMEs, we enhance job creation and productivity. Furthermore, with increased capital, banks can invest in technology and innovation, crucial for driving digital financial services such as mobile money and agent banking. These technologies are key to breaking down geographic and economic barriers, bringing financial services to even the most remote areas,” he stated. The event also provided an opportunity for the Central Bank of Nigeria (CBN) to launch several key initiatives aimed at deepening financial inclusion. These included the Women Financial Inclusion Dashboard, the Women Entrepreneurs Finance Code, and the Financial Inclusion Framework for Forcibly Displaced Persons.
In a separate strategic move to enhance transparency and bolster market confidence, the CBN recently inaugurated the Nigeria Foreign Exchange Code (FX Code) in Abuja. This initiative has already contributed to improved naira stability across both official and parallel markets. CBN Governor, Olayemi Cardoso, who spearheaded the launch of the FX Code, underscored integrity, fairness, transparency, and efficiency as fundamental pillars essential for driving Nigeria’s economic growth and stability. He highlighted that the FX Code is anchored on six core principles: ethics, governance, execution, information sharing, risk management and compliance, as well as confirmation and settlement processes—all aimed at creating a more robust and credible foreign exchange market.
Fight against inflation continues
According to the latest data from the National Bureau of Statistics (NBS), Nigeria’s inflation rate eased to 23.7 per cent in April 2025, a modest decline from the 24.2 per cent recorded in March. Finance Minister and Co-ordinating Minister for the Economy, Olawale Edun, alongside the CBN Governor, reaffirmed that the government recognises the threat inflation poses to the welfare of citizens and is implementing strategic measures aimed at reducing it to single digits while expanding the country’s investment landscape.
Cardoso stated: “We recognise 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.”
In alignment with this vision, Edun noted that Nigeria is targeting seven per cent economic growth, a projection that, if achieved, would significantly reduce poverty and improve the lives of millions of Nigerians. He said: “That’s a commitment and a target. The way to achieve it is by focusing on agriculture, increasing productivity, and making food more available to the people. We are also prioritising infrastructure development, especially in the digital economy, to benefit young people, and we are supporting businesses through improved access to finance.”
Providing insights into the outcome of the Spring Meetings, Edun noted that the discussions took place against a backdrop of global uncertainty, structural shifts, rising trade and geopolitical tensions, elevated interest rates, and high debt levels—conditions that have severely impacted many countries in Sub-Saharan Africa. He explained that while tariff hikes are eroding real wages and the disruption of global supply chains continues to disproportionately affect Emerging Market and Developing Economies (EMDEs)—due to their limited economic diversification and heavy reliance on imports—domestic policy re-strategising must remain the first line of defence.
“Fiscal policies should safeguard sustainability and rebuild buffers; remain investment friendly to create job opportunities and enhance resilient growth. Policy calibration should be toward further restoring confidence & stability, reduce imbalances and improve productivity to drive sustainable growth. Regional & cross regional economic integration and cooperation is critical,” he said.
He explained that in line with the Renewed Hope Agenda of Mr. President, Nigeria is already pursing growth-oriented policies through the various initiatives in agriculture & food security, road & rail infrastructure, social security as well as strong reform in both the upstream & downstream sectors of the oil & gas arena. Continuing, Cardoso disclosed that another key pillar of the reforms is 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.
Non-resident biometric verification number
Recognising the strategic importance of expanding the financial services network—particularly to Nigerians in the diaspora—the Central Bank of Nigeria (CBN) recently launched the Non-Resident Biometric Verification Number (NRBVN) platform in Abuja. Speaking at the launch, Governor Cardoso noted that historically, Nigerians living abroad have encountered significant challenges when attempting to access financial services in Nigeria. The mandatory in-person verification process for obtaining a BVN often entailed substantial costs in both time and financial resources, particularly for those residing in remote areas.
The NRBVN platform directly addresses these challenges. By enabling digital verification and implementing robust Know Your Customer (KYC) procedures, Nigerians globally can now remotely obtain a BVN—securely and efficiently. This single digital gateway will provide seamless access to a range of banking services, including account opening and secure fund transfers, thereby significantly enhancing convenience and reducing transaction costs.
“In developing this solution, we draw valuable lessons from countries such as India and Pakistan. India’s Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts have significantly simplified banking processes for its diaspora, and Indian banks currently hold approximately $160 billion in diaspora deposits, achieved by providing attractive and tailored products and services,” he said.
According to the CBN boss, in developing the NRBVN, the team also took cognizance of Pakistan’s innovative Roshan Digital Account, offering fully online on-boarding and investment opportunities and successfully attracting nearly $10 billion since its inception. These examples, Cardoso explained underscore the power of digital financial inclusion and specifically tailored products in driving meaningful engagement and substantial economic inflows from diaspora populations.
Backward integration gains ground
Nigeria stands at a critical crossroads where the imperative to promote local manufacturing has never been more pressing. As businesses and the broader economy continue to push towards sustainable growth and development, the promotion of indigenous manufacturing offers far-reaching benefits. These include job creation, increased foreign exchange earnings through exports, enhanced support for the naira, and a broader contribution to economic and social progress. However, achieving these gains demands a deliberate shift—especially by major economic players such as those in the telecommunications sector—towards backward integration. This strategy entails sourcing and producing essential inputs locally, thereby reducing dependence on imported raw materials.
Governor Cardoso recently provided insights into the economic benefits of backward integration in the telecoms industry. Speaking in Abuja during a courtesy visit by the Airtel Africa management team led by Group CEO Sunil Taldar, Cardoso emphasised that ramping up local production of key components—such as SIM cards, cables, and telecom towers—would significantly ease pressure on foreign exchange, generate employment, and drive economic growth. He noted that over the past 16 months, the Central Bank has taken deliberate steps to stabilise the foreign exchange market, strengthen the naira, and attract both local and foreign investment. Against this backdrop of progress, Cardoso called on telecoms operators to play their part by embracing backward integration.
In response, Sunil Taldar commended the CBN’s reform efforts and expressed Airtel Africa’s support for the local production drive, acknowledging that it would be beneficial for the telecoms industry in the long term. He also reaffirmed Airtel’s commitment to expanding financial inclusion through technology. Taldar was joined on the visit by Dinesh Balsingh, CEO of Airtel Nigeria; Jaideep Paul, Group CFO; and Femi Adeniran, Director of Corporate Communications and CSR.
Executive Secretary of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), Gbolahan Awonuga, said that aside telecom operators, other key business owners and entrepreneurs can also invest in the local manufacturing of key components in telecoms operations. He said: “We have to look inwards and get Nigerian companies to produce these key components in telecom operations locally. Government also has a role to play, by ensuring that key infrastructure especially power is available. We do not want a situation where locally produced inputs, will become more expensive than imported versions.”
Awonuga said that telecom sector plays key roles in banking services, including enabling digital payments and ensuring security of transactions. He said banking and telecom sectors have more to gain if backward integration thrives in the country adding that government has significant role to play to make the move a success.
More views from stakeholders
The World Bank has projected that Nigeria’s economy will grow by 3.6 per cent in 2025. Speaking on the outlook, Alex Sienaert, the World Bank’s Lead Economist for Nigeria, commended the Nigerian government for implementing key macroeconomic reforms that have contributed to stabilising the economy. However, Sienaert stressed that further action is required to ensure that the projected growth is inclusive, particularly through the expansion of cash transfer programmes aimed at supporting vulnerable populations.
He noted that global experience demonstrates that the public sector alone cannot drive sustainable economic growth or create sufficient employment opportunities. Instead, he said, the government must recognise the limitations of public resources and adopt a strategy that allows the public sector to focus on delivering essential services—such as infrastructure and human capital development—while creating a more enabling environment for the private sector to flourish.
“Nigeria is no exception, particularly since public resources remain constrained. A useful strategy is to position the public sector to play a dual role as a provider of essential public services, especially to build human capital and infrastructure, and as an enabler for the private sector to invest, innovate, and grow the economy,” Sienaert added.
The World Bank has also stated that Nigeria’s economy must grow at five times its current pace to achieve the $1 trillion GDP target by 2030 and effectively tackle the country’s rising poverty levels. Meanwhile, Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), commended the current administration for implementing several critical corrective reforms. He noted that the government’s commitment to exchange rate convergence and the removal of the fuel subsidy were courageous and necessary steps to eliminate longstanding distortions in the economy. “These were inevitable reforms, essential for fixing damaging economic distortions,” Yusuf said.
However, he emphasised the need for additional measures to cushion the impact of the reforms. “We need to see more fiscal and tax incentives to stimulate the recovery of key growth sectors and reduce the pain associated with current policy adjustments. The government now has the fiscal space to support businesses and vulnerable groups through well-targeted, policy-driven incentives,” he added.
Dr. Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), has called for greater inclusivity in the management of diaspora remittances to boost foreign exchange inflows. He urged President Tinubu to diversify Nigeria’s forex sources by granting autonomy to Bureau de Change (BDC) operators and readmitting them into the Central Bank of Nigeria’s foreign exchange framework. According to him, BDCs should be formally recognised as agents for handling diaspora remittances and facilitating cash imports through banks.
Gwadabe believes this strategic move will not only increase dollar liquidity but also stabilise the forex market and support economic growth. “I advise the president to ensure that Nigeria’s forex sources are diversified through the grant of autonomy to the BDCs to be readmitted into the frame and legislation of the apex bank foreign exchange policies as agents of Diaspora remittances and cash imports through the banks,” he said.
His recommendation underscores the critical role of non-traditional financial institutions in expanding access to forex sources and improving market efficiency. Despite numerous economic challenges, Nigeria has, over the past two years, steadily repositioned itself as a rising economic force. The country’s resolve in implementing difficult but necessary reforms has attracted commendation and revived investor confidence. These gains, though fragile, provide a strong foundation upon which to deepen reforms, expand opportunities and consolidate sustainable growth. Opening up the foreign exchange ecosystem—particularly through diaspora remittances—can be a game changer in Nigeria’s journey towards economic stability and long-term prosperity.
Since President Bola Tinubu took office in 2023, Nigeria’s ICT sector has seen encouraging growth through increased digital innovation, start-up support and youth-driven entrepreneurship. However, infrastructural challenges like unreliable power, operational cost, limited internet access, insecurity and regulatory barriers continue to slow progress. Balancing these advances with persistent obstacles will be crucial for Nigeria to fully harness its tech potential and drive inclusive economic transformation in the years ahead, reports Assistant Editor LUCAS AJANAKU
When President Bola Tinubu assumed office on May 29, 2023, expectations were high that his administration would bring transformative change to Nigeria’s ICT sector. These hopes were well-founded. As former governor of Lagos State, Tinubu had successfully leveraged technology to boost the state’s internally generated revenue (IGR) and eliminate payroll fraud, particularly the issue of “ghost workers.”
His commitment to technology-driven governance was evident when he received the Vice President of Oracle, Andress Arroyo, during a courtesy visit in Abuja. Tinubu spoke fondly of his experience with the tech company, saying: “I have tested Oracle, and it worked for our success. In Lagos State, what we did in effective collaboration with you has been copied across the states of the federation.”
Since taking office, President Tinubu has shown a clear resolve to prioritise digital innovation as a catalyst for economic growth. This vision was reflected in the renaming of the Federal Ministry of Communication and Digital Economy to the Ministry of Communication, Innovation and Digital Economy, followed by the appointment of a seasoned industry expert, Dr. Bosun Tijani, as minister.
“We can only build our institutions with accurate data and cutting-edge data management capabilities that are reliable and effective. We can only rely upon our human resources for excellent service delivery to Nigerians if they are well-trained and ready to learn,” he said, adding that the government is committed to a bottom-up approach and believes that a comprehensive solution for public administration can be created from a single sheet of paper, enhancing effectiveness and reliability.
“The transfer of knowledge is essential for our nation and the continent. In this government, we believe that the only way to build our country is a bottom-up approach and from one single sheet of paper, we can create an end-to-end solution for public administration that will rid our service of its worst tendencies in favour of effectiveness and reliability,” Tinubu said.
Coordinating Minister of the Economy and Minister of Finance, Wale Edun, highlighted the growing role of the ICT sector in Nigeria’s economy, revealing that the industry contributed 16per cent to the country’s GDP in 2024. “We are prioritising the ICT sector as a key driver of economic stability and job creation,” Edun said. He also referenced Tinubu’s recent engagement with Flutterwave’s CEO, where the company pledged to support Nigerian youth and small businesses through technology-driven solutions. “Flutterwave is considering listing on Nigeria’s Stock Exchange, and we expect this to strengthen the tech and payments ecosystem further,” he added.
In line with its commitment to develop the ICT sector, the Federal Government has rolled out a series of forward-thinking policies through the Ministry of Communications, Innovation and Digital Economy, the body responsible for shaping the direction of Nigeria’s tech industry. Among these is the ambitious 3,000,000 Technical Talent (3MTT) initiative, designed to build a vast pool of skilled tech professionals who can drive the country’s digital economy and position Nigeria as a global exporter of digital talent.
Another notable initiative is Project 774LG Connectivity, which aims to provide internet access to all 774 local government secretariats across the nation, thereby fostering inclusivity and digital access at the grassroots level. To further improve internet penetration nationwide, the government launched a special-purpose vehicle (SPV) tasked with deploying an additional 90,000 kilometres of fibre-optic cable. This bold infrastructure push has already drawn the attention and interest of the World Bank.
Furthermore, the National Digital Economy Policy and Strategy (2020–2030), initially introduced under the previous administration, has been revitalised with more ambitious targets and increased funding. Complementing this is the National Digital Innovation and Entrepreneurship Policy, which seeks to nurture the start-up ecosystem by creating a conducive environment for tech businesses to grow into unicorns. The policy includes tax incentives, streamlined regulatory procedures, and access to capital through government-backed venture funds—key enablers for start-up success in Nigeria’s evolving digital landscape.
To keep pace with the rapidly evolving digital landscape, the Federal Government updated the National Cybersecurity Policy and Strategy, ensuring it is better equipped to respond to emerging threats posed by new technologies. Recognising the vital role of cybersecurity in a digitising economy, the government has implemented several measures to protect Nigeria’s digital infrastructure. These efforts include strengthening cybersecurity frameworks, enhancing the capacity of law enforcement agencies to tackle cybercrime, and increasing public awareness around digital safety.
Among the flagship initiatives is the 3MTT Digital Skills Programme, which aims to train three million Nigerian youths in digital technology and essential soft skills. This programme is not only intended to boost digital literacy but also to create employment opportunities and support Nigeria’s transition to a more diversified, tech-driven economy by preparing the workforce for future demands. In the area of broadband expansion, the government has committed to delivering internet connectivity to all 774 local government secretariats within six months. This ambitious goal leverages existing national infrastructure, including NIGCOMSAT and Galaxy Backbone’s fibre-optic network, to deepen digital penetration and stimulate the digital economy.
Global development institutions have acknowledged the importance of such efforts. For instance, the World Bank notes that a 10 per cent increase in mobile broadband penetration can significantly boost economic growth in developing countries—estimating a potential 2.5 per cent rise in GDP per capita across Africa. The Bank underscores that expanding broadband access is critical for accelerating digital transformation and economic development, particularly in regions where connectivity still lags behind.
Support for the digital economy and e-governance under President Tinubu’s administration has been nothing short of remarkable. The government has prioritized the development of a thriving digital ecosystem, with plans to enact the Digital Economy and e-Governance Bill, 2024. As part of this drive, states are being encouraged to eliminate bottlenecks such as Right of Way (RoW) fees, which hinder the deployment of telecom infrastructure. There is also a strategic push to migrate all government ministries, departments, and agencies to the OneGov.ng portal, aimed at streamlining e-governance and improving service delivery.
On the global stage, the administration has advanced Nigeria’s digital infrastructure by facilitating the landing of a Meta-backed submarine cable, a move that is expected to double the country’s subsea internet capacity and significantly boost economic activities, particularly in the tech and creative sectors. The government is also actively fostering partnerships with leading global technology companies to support innovation, capacity building, and monetisation opportunities for Nigerian digital creators. Youth empowerment remains a central pillar of these digital initiatives. Through sustained funding for programs like the 3MTT initiative, the government is promoting widespread digital skills acquisition. Other efforts include supporting the establishment of digital health innovation hubs and encouraging technology adoption among small and medium-scale enterprises (SMEs) to increase productivity and competitiveness.
On the infrastructure front, the administration has made landmark strides with significant investments in broadband expansion. A Special Purpose Vehicle (SPV) has been approved to deliver an additional 90,000 km of fibre-optic cable, expanding Nigeria’s digital backbone to at least 125,000 km. This will make it the third-longest terrestrial fibre-optic network in Africa, after Egypt and South Africa—positioning the country as a leading digital hub on the continent.
“This project will result in the third-longest fibre-optic network in Africa, following only South Africa and Egypt,” said Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy. He noted that significant progress had already been made, bolstered by the support of the Ministry of Finance and a $500 million funding commitment secured from the World Bank.
In a further demonstration of Nigeria’s digital ambition, Tijani disclosed that the country is on track to become one of the first in Africa to fully transition from IPv4 to IPv6, a critical step toward achieving more robust internet connectivity, enhanced security, and future-ready digital infrastructure. On the contentious issue of Right of Way (RoW) fees, Tijani revealed that 11 states have so far complied with the Federal Government’s request to waive the charges—an important step aimed at lowering broadband deployment costs and accelerating internet penetration across the country.
To strengthen international linkages, President Tinubu approved the conversion of a federal property in San Francisco, USA, into a Nigerian Digital Technology Exchange Programme Hub, known as the Nigeria Startup House. This initiative is designed to connect Nigeria’s burgeoning start-up ecosystem to global tech markets and attract foreign direct investment (FDI). On the policy and regulatory front, the President directed that digital infrastructure investments be prioritised, accompanied by sweeping reforms to remove bureaucratic bottlenecks. Among these is a review of withholding tax policies for telecom companies, aimed at stimulating further private-sector investment in broadband and digital infrastructure.
The administration has also encouraged large-scale private sector participation. Notably, American Tower Corporation (ATC Nigeria) has sustained a major investment drive, with its cumulative investments in digital infrastructure surpassing $2.19 billion since 2015. Collectively, these efforts—ranging from fiscal policies and regulatory reforms to global partnerships and massive infrastructure investments—are strategically designed to expand digital access, reinforce Nigeria’s digital backbone, and position the country as a formidable player in the global digital economy.
To bridge Nigeria’s digital divide, the Universal Service Provision Fund (USPF), in collaboration with development partners, has announced plans to deploy an additional 1,000 base transceiver stations (BTS) in rural communities across the country. This effort is in addition to the 7,000 BTS recently unveiled by the Federal Government as part of its broader push to improve nationwide connectivity. According to a report by the Policy Competition and Economic Analysis Department of the Nigerian Communications Commission (NCC), the industry saw significant infrastructure development in 2022. Mobile Network Operators (MNOs) recorded: 34,862 towers; 127,294 base transceiver stations; 289,270.48 km of microwave coverage; 125 gateways; and 96,198 km of terrestrial and submarine fibre-optic cabling. The USPF also highlighted the considerable progress made in closing the country’s connectivity gap. Between 2013 and 2024, the gap narrowed by 57.97 per cent, with the number of unconnected clusters—areas with limited or no network services—dropping from 207 to 87. This improvement has directly impacted 13.8 million Nigerians, bringing them into the communication fold.
Moreover, the number of people living in unserved and underserved areas has decreased significantly, falling from 36.8 million in 2013 to 23 million today. These gains reflect the government’s sustained investment in telecom infrastructure and its commitment to ensuring that no part of the country is left behind in the digital age.
Challenges persist in a sector gasping for breath
Despite the renewed momentum in Nigeria’s digital transformation, the telecom sector continues to grapple with longstanding obstacles—many of which predate the Tinubu administration. Both the Association of Telecommunications Companies of Nigeria (ATCON), led by Tony Izuagbe Emoekpere, and the Association of Licensed Telecom Operators of Nigeria (ALTON), chaired by Gbenga Adebayo, have jointly raised alarm over several critical issues threatening the sustainability of the industry and its ability to deliver quality services. These include: Multiple taxation, High Right of Way (RoW) charges, infrastructure vandalism, foreign exchange constraints, and inconsistent power supply.
On the tax burden, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, revealed that Nigeria officially has over 60 types of taxes, while unofficial estimates put the figure at over 200. He added that some states impose between 100 to 117 different levies, further complicating the business climate.
Adebayo, who leads ALTON—a body representing major carriers such as MTN, Airtel, Globacom, and 9mobile—noted that the telecom sector alone contends with over 50 different taxes, levies, and regulatory charges, making it one of the most overburdened sectors in the economy. Another compounding challenge is the removal of petrol subsidies, which triggered inflation rates nearing 30 per cent. Telecom operators say they have not been spared from the effects. Operating costs have surged, largely driven by the rising cost of powering infrastructure.
When the telecom sector was liberalised nearly 25 years ago, the Federal Government reportedly promised operators a minimum of 18 hours daily electricity supply from the national grid. That commitment was never fulfilled. Nigeria’s ageing and inefficient transmission infrastructure has made consistent power supply elusive—even if 10 megawatts of electricity were generated nationally. As a result, telecom operators have been forced to rely heavily on diesel generators, inverter batteries, and solar power systems to keep their base stations running. Unfortunately, these power sources are frequently vandalized or stolen, adding further strain to already overstretched operational budgets. These persistent challenges, if not urgently addressed, risk undermining the substantial progress made in Nigeria’s digital economy and could hinder future growth, innovation, and job creation within the sector.
Despite government reforms and recent tariff adjustments, the telecoms sector continues to face severe headwinds. Karl Toriola, CEO of MTN Nigeria, painted a stark picture of the industry’s condition, likening it to “a sick patient in an intensive care unit (ICU), gasping for breath.” Gbenga Adebayo, Chairman of ALTON, echoed similar sentiments, warning that without tariff adjustments, the sector might be forced to adopt load shedding, similar to what happens in the power sector—rationing services due to the unsustainable cost of operations.
In a bid to avert such a scenario, the Federal Government recently approved a 50 per cent adjustment in telecom end-user tariffs. The move, announced by Dr. Aminu Maida, Executive Vice Chairman/CEO of the Nigerian Communications Commission (NCC), was aimed at stabilizing the industry and enabling operators to invest in service quality improvement. The decision was widely welcomed by industry stakeholders. Obafemi Banigbe (CEO of 9mobile), Dinesh Balsingh, Karl Toriola, Gbenga Adebayo, Tony Emoekpere, and even consumer watchdogs such as the Association of Telephone, Cable TV and Internet Subscribers of Nigeria (ATCIS-Nigeria), led by Sina Bilesanmi, hailed the measure as a much-needed breather for an industry teetering on the brink.
However, consumer groups and subscribers remain sceptical about the impact of the tariff hike. ATCIS-Nigeria and the Association of Telecom Subscribers of Nigeria (NATCOMS) have noted that the price adjustment has not immediately translated into better service delivery. “We are appalled by the poor service quality. The worst is data. When you buy data for N2,000—without streaming videos—just checking emails or chatting on social media, it vanishes like soap bubbles. You keep paying for services that don’t match your hard-earned cash,” lamented a subscriber, Agnes.
In response to these concerns, Dr. Maida has assured the public that service improvements will take time. According to him, telecom operators have collectively committed over $1 billion towards equipment upgrades and nationwide network expansion. He noted that this information was gathered during his engagement with original equipment manufacturers (OEMs), reinforcing the NCC’s stance that the industry needs a grace period—three months post-adjustment—to deliver visible results. Still, subscribers remain watchful, hoping that the financial lifeline extended to operators translates into meaningful change in their everyday digital experiences.
In a decisive step to fortify Nigeria’s digital infrastructure, President Tinubu signed the Designation and Protection of Critical National Information Infrastructure Order, 2024, into law. This landmark order establishes a legal framework for the protection of vital ICT assets—including telecom towers, data centres, and fibre optic cables—against sabotage, vandalism, and other forms of malicious interference. The regulation prescribes strict penalties for wilful damage or disruption, signalling the government’s resolve to protect what many now consider Nigeria’s digital lifeline.
The order is a much-needed intervention in a sector often described as “the chicken that lays the golden egg”—a reference to the telecom industry’s consistent and growing contribution to Nigeria’s Gross Domestic Product (GDP). According to official data, the ICT sector contributed 17.68% to real GDP in Q4 2024, with the telecommunications sub-sector alone driving 14.40% of that growth. Since Q1 2020, telecom’s quarterly contribution has remained above 10%, affirming its role as a key engine of the national economy.
Yet, challenges persist—especially in the area of national security. Despite the mandatory linkage of the National Identity Number (NIN) with every SIM card, criminal elements still exploit mobile infrastructure to carry out nefarious activities. A glaring example is the continued use of mobile phones by kidnappers to negotiate ransoms, often under the radar of law enforcement. At a recent forum in Lagos, lawmakers expressed deep frustration over the situation, directing criticism at the Nigerian Communications Commission (NCC). One of the most vocal was Chinedu Ogah, who decried what he described as the Commission’s long-standing inaction. “Every crime committed in the country rides on infrastructure operated by MNOs—and both the NCC and the operators are aware of this,” Ogah fumed.
He further questioned the Commission’s timing in highlighting the limitations of the Nigerian Communications Act of 2003, asking why it had taken 22 years—or even just five years after enactment—to flag its inadequacies. These concerns underscore the tension between digital advancement and national security and highlight the urgent need for more responsive regulatory oversight, updated legislation, and better collaboration between telecom operators, security agencies, and regulators.
Etanabene Benedict accused the Nigerian Communications Commission (NCC) and Mobile Network Operators (MNOs) of aiding and abetting criminal activities within the country. As a lawyer, he insisted that they should be prosecuted and made to answer criminal charges. Eletu Moshood Olawale raised concerns about the collaboration between the NCC and MNOs, arguing that the partnership was driven solely by profit motives. He questioned whether Nigerians were truly benefiting from these arrangements, asking rhetorically, “Are Nigerians getting value for their money?” He also condemned the abuse of social media platforms for personal attacks, highlighting how the Commission appeared to turn a blind eye to such issues.
On the other hand, Maida stated that certain regulatory decisions have begun to stabilize the telecommunications sector. He highlighted that, at the insistence of the NCC, about 60 million SIM cards were deactivated last year, ensuring that every active line is now linked to a National Identification Number (NIN). He also asserted that no MNO obstructs lawful intercept requests from law enforcement agencies. Adebayo challenged any security agency to publicly confirm if telcos have ever refused requests for geo-location data, implying full cooperation between telcos and security agencies.
These initiatives collectively mark significant progress in Nigeria’s ICT sector under President Tinubu’s administration. The focus has been on securing infrastructure, expanding access, empowering youths, and positioning Nigeria as a leading digital economy in Africa.
However, telecom subscribers may soon face a five per cent increase in data and voice service charges if the Nigeria Tax Bill 2024, passed by the Senate on May 8, 2025, is signed into law. The bill reintroduces a controversial five per cent excise tax on telecom services. Industry operators warn that this tax could burden consumers and impede efforts toward digital inclusion. This excise duty was first introduced under the Finance Act of 2020 during former President Muhammadu Buhari’s administration. Implementation faced resistance from the then Minister of Communications and Digital Economy, Prof. Ali Pantami, who claimed he was unaware of the tax when the Nigerian Customs Service sought to begin enforcement.
The five per cent excise tax on telecom services faced strong opposition not only from telecom operators but also from subscriber groups, leading to its earlier suspension. Its recent passage by the Senate has reignited widespread criticism across Nigeria, especially given the fragile state of the economy. The tax threatens to increase the cost of essential telecom services, which many Nigerians rely on daily.
President Tinubu had previously suspended the tax in July 2023, citing concerns that it could exacerbate inflation and restrict access to digital services for the populace. “We’ve had no clarity on how the five per cent tax would be implemented, but the burden will fall on the consumer. Telecoms should be treated as a social good, not taxed like luxury items. No one taxes telecoms like this in countries where infrastructure is taken seriously,” warned Adebayo.
Industry experts argue that excise taxes are typically applied to luxury or harmful goods — such as designer watches, luxury cars, alcohol, or tobacco — where governments seek to discourage consumption. Internet access and voice calls, which are increasingly considered fundamental human rights in more advanced economies, should not be classified as luxury items. “There’s no wiggle room for operators to absorb this cost. Operators are already working with a tariff increase that fell short of what they need. The new tax will squeeze margins and hit consumers the hardest,” noted Emoekpere.
Adebayo added, “The government should not be so extractive of the average Nigerian. Someone recharging N1,000 will feel this five per cent tax the most. It also places an additional compliance burden on operators to collect and remit the tax.”
Bolaji Balogun, CEO of Chapel Hill Denham, emphasized the critical role of ICT in Nigeria’s security and development. He urged the ecosystem to increase localization efforts to reduce foreign exchange dependency, leverage the capital markets, and develop a steady pool of skilled human capital. Balogun warned that only investments — not taxation — will lift Nigerians out of poverty.
Despite ambitious policies, many require long gestation periods, and unresolved challenges threaten to undermine expected progress. Key hurdles include insecurity — with the Critical National Infrastructure Executive Order still not operationalized — persistent multiple taxation, and restricted access to foreign exchange for telcos to procure essential equipment. These obstacles remain major roadblocks to meaningful growth and development in Nigeria’s ICT sector.
Despite enduring macroeconomic headwinds and structural hurdles, the nation’s manufacturing sector is finding flickers of hope amid bold policy reforms. As the real engine of economic growth, manufacturing sits at the heart of the nation’s aspirations for industrial revival. Two years into President Tinubu’s ambitious Renewed Hope Agenda, the sector stands at a crossroads—grappling with painful shocks yet bracing for transformation driven by audacious fiscal and monetary recalibrations, reports Assistant Editor CHIKODI OKEREOCHA
For decades, the nation’s economic narrative has been one of boundless promise shadowed by persistent and complex challenges. As Africa’s largest economy, the nation is endowed with vast natural resources, a burgeoning youthful population, and an enviable geopolitical stature within the continent. Yet, despite these inherent strengths, Nigeria has struggled to fully harness its potential. Chronic under-investment in critical infrastructure, pervasive corruption and a stubborn dependence on oil exports have collectively stifled the country’s progress. These longstanding impediments have slowed efforts to diversify the economy and elevate living standards, leaving many Nigerians eager for transformative change.
In this context, the recent unveiling of the Nigeria First Policy by the federal government emerges as a clarion call for economic revival and self-determination. This ambitious blueprint is designed to reposition Nigerian businesses, talents, and resources as the pillars of a new economic renaissance. It signals a deliberate and strategic pivot away from external dependency toward a future defined by economic sovereignty, resilience, and sustainable growth.
Capping a wave of strategic reforms, the Federal Government’s approval of the Nigeria First policy directive on May 5, 2025, has been widely welcomed as a bold and transformative initiative. Announced by the Minister of Information and National Orientation, Mohammed Idris, the policy mandates that all government procurement processes henceforth prioritise Nigerian-made goods and services. This directive is more than procedural; it is a deliberate and symbolic assertion of the government’s resolve to empower local manufacturers and safeguard domestic value chains. Crucially, the policy stipulates that government agencies must abstain from procuring foreign products or devices that are already manufactured within Nigeria—unless a clear, justifiable exception is made.
The Nigeria First Policy is poised to be formalised through an executive order from President Bola Tinubu, aligning with his broader economic vision to shield the Nigerian economy from the shocks of a volatile global environment. Central to this vision is the ambition to ignite sustainable industrial growth and generate jobs at a scale commensurate with Nigeria’s vast population. This move seeks to reposition the manufacturing sector as the vibrant engine of national development, catalysing economic diversification and fostering resilience.
Industry stakeholders have expressed cautious optimism about this shift. The Director General of MAN, Segun Ajayi-Kadir hailed the policy as a long-overdue lifeline. “This initiative offers renewed hope and encouragement to Nigerian manufacturers who have endured harsh economic conditions with unwavering faith in the country’s potential,” he noted. More than a mere policy statement, Nigeria First is a concrete affirmation of government commitment to nurturing a self-reliant economy. Ajayi-Kadir, a leading voice in the manufacturing community, emphasised that by prioritising locally made products, Nigeria can stimulate domestic demand, optimise capacity utilisation, and attract vital private sector investments. The ripple effects of such a shift are profound: revitalised industries, reduced unemployment, enhanced innovation, and a shrinking trade deficit—each reinforcing a stronger national identity intertwined with economic self-determination.
Complementing this perspective, Mr. Adewale-Smatt Oyerinde, Director General and Chief Executive of the Nigeria Employers’ Consultative Association (NECA), described the Nigeria First Policy as “a strategic economic imperative that organised private sector stakeholders have long championed.” According to Oyerinde, this intervention directly addresses pressing economic challenges by mandating the prioritisation of Nigerian-made goods and services. He underscored its potential to boost domestic production capacity, relieve pressure on the foreign exchange market, and invigorate industrial growth—while simultaneously creating much-needed employment opportunities. “For years, we have urged the government to fully back local manufacturers,” Oyerinde stated. “This policy provides a practical pathway toward self-sufficiency and a more robust, resilient economy.”
In sum, the Nigeria First Policy heralds a pivotal moment in Nigeria’s economic journey. It embodies a shift toward inclusive growth, where local knowledge, resources, and ingenuity take centre stage. While challenges in implementation remain, the policy’s success could redefine Nigeria’s economic trajectory—empowering its people and industries to compete confidently both at home and abroad. In this new dawn, Nigeria stands poised to reclaim its place not just as Africa’s largest economy, but as a beacon of economic sovereignty and sustainable development.
It is no coincidence that the real sector—particularly manufacturing—is widely regarded as the engine of economic growth. This recognition stems from the sector’s pivotal role in driving broad-based development. With its intricate linkages across agriculture, services, and trade, manufacturing possesses an unmatched capacity to generate employment, enhance productivity, and contribute significantly to national output. More importantly, it offers a viable pathway to inclusive and sustainable development, creating value chains that can uplift millions and drive long-term economic transformation.
Thus, it came as no surprise when the administration of President Bola Ahmed Tinubu, in alignment with its Renewed Hope agenda, set an ambitious industrialisation target: to grow the manufacturing sector by an average of six per cent annually. At the heart of this aspiration lies a broader economic vision—to elevate Nigeria into a $1 trillion economy by the year 2026, powered by a revitalised and competitive manufacturing base. In this vision, factories would hum with renewed activity, warehouses brim with homegrown goods, and the Nigerian brand, once constrained, would stand tall on the global stage.
Yet two years into the administration, a pressing question persists: has this crucial engine of growth been successfully jumpstarted? Has manufacturing lived up to its promise as the linchpin of national economic renewal? And more critically, have the government’s fiscal and monetary reforms helped to resolve the deep-rooted and emerging challenges faced by the sector?
From the outset, the Tinubu administration did not underestimate the scale of the task before it. It inherited an economy burdened by structural imbalances, including weak infrastructure, limited industrial financing, and inconsistent policy implementation—all of which had long conspired to suppress Nigeria’s manufacturing potential. But as the administration sought to clear a path for reform, it also introduced sweeping policy changes that, while bold and necessary, delivered severe short-term shocks to both businesses and households.
Chief among these were the removal of the decades-old fuel subsidy regime and the liberalisation of the foreign exchange market. While the end of fuel subsidies helped to eliminate a major fiscal drain and curb corruption within the system, it led to a sharp, nearly 500 per cent rise in petrol prices over the course of a year. For manufacturers, this translated into skyrocketing transportation and energy costs, complicating production planning and eroding competitiveness.
Simultaneously, the unification of Nigeria’s multiple exchange rates and the subsequent floatation of the naira brought dramatic currency devaluation. Between October 2023 and October 2024, the naira lost over half its value—prompting the World Bank to rank it among Africa’s worst-performing currencies during that period. The sudden depreciation sent shockwaves through the economy, significantly increasing the cost of imported raw materials and machinery that many local manufacturers still rely on.
While the World Bank acknowledged that the reforms eventually improved foreign exchange liquidity and helped stabilise the naira by early 2025, the path to that point was turbulent. Businesses, particularly in the manufacturing sector, were left grappling with rapidly rising input costs and reduced consumer purchasing power. The inflationary spiral sparked by these twin reforms deepened Nigeria’s cost-of-living crisis, with food and fuel prices reaching unprecedented highs. Real incomes fell sharply, and the promise of an industrial rebirth began to feel remote for many.
The impact on household welfare was profound. Nigerians faced skyrocketing prices across essential sectors—food, transportation, energy, healthcare, and education—effectively lowering living standards. Businesses, especially those in the manufacturing sector, were not spared. Otunba Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN), offered a sobering picture of the sector’s performance under these strained conditions. According to him, the combined weight of high inflation, currency depreciation, surging interest rates, escalating electricity tariffs, sluggish sales, multiple taxation, and persistent security challenges had placed manufacturers under immense pressure. These compounding factors severely eroded profitability and dampened the sector’s overall contribution to the nation’s GDP.
He noted, for example, that inflation had soared to a staggering 34.6 per cent by November 2024, drastically diminishing consumer purchasing power and triggering a slump in demand for manufactured goods. The direct consequence was a growing stockpile of unsold inventory—reportedly valued at over N1.4 trillion across the manufacturing sector. In addition, the floating of the naira significantly inflated the cost of imported raw materials and machinery, compounding the operational challenges for manufacturers already grappling with thin margins.
Interest rates, another critical factor, surged to 27.7 per cent by November 2024, pushing the cost of borrowing beyond reach for many businesses. This stifled access to credit for expansion and technological upgrades, further limiting the sector’s capacity for growth and innovation. Compounding these challenges was a steep hike in electricity tariffs—by over 250 per cent—which turned energy costs into one of the largest operating expenses for manufacturers in 2024. In response, many firms were forced to invest in alternative energy sources, further depleting their already stretched resources and making it even more difficult to remain competitive in both local and export markets. These pressures, Meshioye observed, were clearly reflected in the manufacturing sector’s dwindling contribution to Nigeria’s GDP—a troubling signal for a country that aims to industrialise and diversify its economy.
The signs of distress within Nigeria’s manufacturing sector have become increasingly evident. For instance, the sector’s share of the economy declined sharply from 16.04 per cent in Q4 2023 to 12.68 per cent in Q2 2024, underscoring a contraction in economic activity. “The combination of high operational costs, reduced consumer demand, and limited access to finance contributed majorly to this decline,” said Otunba Meshioye.
The sector’s growth figures paint an equally troubling picture. In Q3 2024, manufacturing recorded a modest growth rate of 2.18 per cent—far below the six per cent average projected by the Tinubu administration. Even more concerning, this lacklustre performance came at a time when the broader economy experienced notable improvement, expanding by 3.46 per cent—compared to 2.54 per cent in the same period in 2023 and 3.19 per cent in the preceding quarter. According to the National Bureau of Statistics (NBS), the uptick in GDP was primarily driven by the services sector, which contributed a dominant 53.58 per cent to the economy. In contrast, agriculture and industry—which includes manufacturing—accounted for 28.65 per cent and 17.77 per cent, respectively. Within the services sector, key drivers included information and communication technology (14.51 per cent), trade (12.67 per cent), and financial and insurance services (4.72 per cent).This emerging pattern of growth has raised serious concerns among industry stakeholders. Ajayi-Kadir, expressed worry over the growing imbalance, warning that the dominance of the services sector poses a major setback to Nigeria’s industrialisation goals. He cautioned that as the services sector continues to expand—without a corresponding rise in manufacturing output and employment—the country risks undermining its broader economic objectives. “The economy is set to fail in its aspirations of reducing forex demand pressures, promoting value addition, generating mass employment, increasing export earnings, driving industrial-led growth, and ensuring sustainable development,” Ajayi-Kadir stated.
Ajayi-Kadir further warned that, under current conditions, “Achieving a $1 trillion economy by 2026 is apparently difficult.” He stressed that the manufacturing sector’s anaemic growth clearly signals how it is being stifled by rising interest rates, soaring exchange rates, and escalating energy costs. According to him, the continued decline in the sector’s real growth is a stark indication of the harmful effects of prevailing macroeconomic policies. This, he explained, is also reflected in the sector’s declining nominal growth, which dropped year-on-year from 36.59 per cent to 32.97 per cent—largely driven by high inflationary pressures and the exit of major multinational manufacturing firms from the Nigerian market. “It is evident that inflation has been a major factor undermining the growth of the manufacturing sector,” Ajayi-Kadir stated. “The sector has remained especially vulnerable to an unstable macroeconomic environment, worsened by recent economic reforms.”
He lamented the simultaneous underperformance of both agriculture and manufacturing—two sectors critical to national development. Agriculture, which plays a key role in supplying affordable local raw materials for manufacturing, and the manufacturing sector itself, failed to feature among the top five fastest-growing sectors during the period under review. While insecurity in key farming regions disrupted agricultural production and had negative ripple effects on agro-allied industries, macroeconomic and infrastructural headwinds continued to suppress the manufacturing sector’s potential over the past two years.
Fiscal and monetary reforms to the rescue
Since assuming office on May 29, 2023, President Tinubu has remained unwavering in his commitment to reposition Nigeria’s real sector—particularly manufacturing—as Africa’s most productive and globally competitive. Through bold and strategic reforms, his administration has sought to lay the foundation for a reenergized economy, driven largely by private sector growth. From the now-famous declaration that “subsidy is gone” to the liberalisation of the foreign exchange regime and the signing of four executive orders aimed at addressing tax-related concerns of manufacturers and other businesses, the administration has rolled out a series of reforms designed to catalyse a swift economic rebound.
The decision to end the fuel subsidy—long criticised for being opaque, corruption-prone and fiscally unsustainable—signalled a clear intent to confront long-standing structural distortions head-on. Introduced in the 1970s to cushion the high landing costs of imported refined petroleum products, the subsidy regime had evolved into a fiscal black hole, draining billions of dollars annually from the national treasury. On another front, the unification of exchange rates led to the floating of the naira—a move welcomed by stakeholders as a long-overdue correction. Dr. Muda Yusuf, Director/CEO of the Centre for the Promotion of Private Enterprise (CPPE), hailed the development as “a bold step” capable of unlocking investment opportunities, boosting employment, and improving capital flows into the country.
Micro, Small and Medium Enterprises (MSMEs)—a vital cog in the nation’s economic machinery—also received a lifeline with the introduction of a N75 billion single-digit loan facility disbursed through the Bank of Industry (BoI). With a competitive interest rate of nine per cent and no hidden charges, the scheme allows qualified MSMEs to access up to N1 million, offering much-needed support for business growth and sustainability. In another landmark move, President Tinubu on June 9, 2023, signed the Electricity Act 2023 into law, repealing the Electricity and Power Sector Reforms Act of 2005. The new law introduces a transformative shift by legally empowering states, private companies, and individuals to generate, transmit, and distribute electricity—a step widely seen as a game-changer for Nigeria’s power sector and a critical enabler for industrial expansion.
The move gladdened the hearts of manufacturers, with Ajayi-Kadir describing the Electricity Act 2023 as “a potential game changer for the manufacturing sector—if well implemented.” His optimism stems from the staggering annual loss of N10 trillion that the Nigerian economy incurs due to electricity shortages—a figure equivalent to about two per cent of the country’s GDP. Ajayi-Kadir noted that this persistent power deficit has long made Nigeria one of the most difficult environments in which to conduct business, with the country ranked 171 out of 190 in the World Bank’s Ease of Doing Business index. He expressed confidence that dynamic implementation of the Act would attract increased private investment into renewable energy, bolster energy efficiency, and significantly improve power supply to manufacturers—three critical ingredients for enhanced industrial productivity.
Signing of 4 Executive Orders
To provide crucial buffers and breathing space for the manufacturing sector amid tightening economic conditions, President Tinubu on Thursday, July 6, 2023, signed four executive orders. These deferred the commencement of certain tax changes contained in the Finance Act and the Customs, Excise Tariff (Variation) Amendment Order, which had threatened to impose additional fiscal burdens on businesses. The executive orders primarily addressed distortions in tax exchange rates and the arbitrary application of new levies, which had previously complicated manufacturing operations. Their suspension was widely welcomed by private sector operators, who saw the move as a reaffirmation of the administration’s commitment to a business-friendly environment.
In tandem, the President established the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by renowned tax expert and former PwC Partner, Mr. Taiwo Oyedele. The Committee, comprising seasoned professionals from both the public and private sectors, was mandated to overhaul Nigeria’s tax architecture. Its scope included reforming outdated tax laws, harmonising overlapping levies, streamlining fiscal policy design, and improving revenue administration.
These efforts bore legislative fruit on Thursday, May 8, 2025, when the Senate passed the final two of four landmark tax reform bills. Together, these bills promise to modernise Nigeria’s tax administration, reduce inefficiencies, and offer a more transparent and predictable tax system for businesses. The four bills are: Joint Revenue Board (Establishment) Bill, 2025; Nigeria Revenue Service (Establishment) Bill, 2025; Nigeria Tax Administration Bill, 2025’ and Nigeria Tax Bill, 2025. Industry experts believe these reforms—especially when fully implemented—will simplify compliance, curb the multiplicity of taxes, and attract both local and foreign investment into Nigeria’s manufacturing space.
Consumer credit scheme promises a new dawn
Another strategic reform that underscores President Tinubu’s resolve to stimulate the real sector and unlock consumer demand is the Consumer Credit Scheme (CCS). Approved by the Federal Government, the CCS is designed to empower working Nigerians and small business customers to purchase products and services upfront while paying in instalments—thus boosting consumption and domestic production. The scheme’s first phase officially launched on April 21, 2024, targeting workers nationwide. It is in alignment with the President’s directive to expand access to consumer credit, thereby catalysing economic participation and enhancing financial inclusion.
Spearheading this initiative is the Nigerian Consumer Credit Corporation (CREDICORP)—a federally owned institution tasked with making consumer credit available to 50 per cent of Nigeria’s working population by 2030. In collaboration with financial institutions and cooperative societies, the CCS is expected to spur demand across key sectors, reduce reliance on informal borrowing, and bolster the manufacturing sector by expanding the domestic market for locally made goods. Industry observers see the CCS as a strategic bridge between policy and productivity—driving inclusive economic growth, stimulating the real sector, and offering a much-needed cushion for households grappling with rising living costs.
National Single Window to cut red tape and unlock billions
In a further bid to enhance ease of doing business and stimulate non-oil revenue, the Tinubu administration has revived and begun implementing the National Single Window (NSW) initiative—a centralised electronic trade platform aimed at streamlining Nigeria’s import and export processes. Originally conceptualised in 2016 but stalled due to bureaucratic inertia, the initiative was given new life under President Tinubu, who formally commissioned its implementation on April 16, 2024. Once fully operational, the NSW is projected to reduce average cargo clearance time at Nigerian ports by up to 60 per cent—a monumental shift for a country long plagued by inefficient and opaque port operations.
According to the Minister of Marine and Blue Economy, Adegboyega Oyetola, the NSW will enhance transparency, eliminate duplication of documentation, and significantly curb revenue leakages, which have been estimated to cost the Federal Government over $3 billion annually. The platform is also expected to improve national security by ensuring end-to-end traceability of trade-related activities at the country’s borders. As trade becomes more digitised and integrated through the NSW, exporters and importers will experience shorter wait times, fewer regulatory bottlenecks, and more predictable trade costs—critical factors in attracting foreign investment and deepening Nigeria’s industrial base.
Nigeria takes digital lead in Africa
In a further boost to its economic profile, Nigeria was recently named the Digital Trade Champion by the African Union (AU) under the Africa Continental Free Trade Area (AfCFTA) protocol. The recognition was conferred at the 38th Ordinary Session of the Assembly of Heads of State and Government in Addis Ababa, Ethiopia, where Nigeria’s pivotal role in the development and implementation of the AfCFTA Digital Trade Protocol, adopted in February 2024, was acknowledged. This prestigious designation underscores Nigeria’s growing influence in shaping the continent’s digital economy and affirms the government’s commitment to fostering cross-border e-commerce, innovation, and digital entrepreneurship.
Industry analysts view this recognition as both symbolic and strategic, especially as digital trade has become a critical driver of post-pandemic economic recovery and resilience. With the right support infrastructure, Nigeria could potentially become a continental hub for digital innovation, expanding its service exports and creating new economic opportunities across youth-led tech enterprises.
Manufacturers lament policy setbacks
Yet, not all of the administration’s policy moves have been met with applause. One notable sore point for local producers is the ban on alcoholic beverages packaged in sachets and small PET bottles (less than 200ml), which took effect on February 5, 2024. While the Federal Government argued that the ban was aimed at protecting public health—particularly by curbing underage alcohol consumption—industry operators raised red flags, claiming the policy was economically disruptive and poorly timed.
Manufacturers insist the ban infringes on the rights of legitimate businesses and risks destroying the investments of numerous indigenous entrepreneurs who have persevered through economic instability to sustain operations. “This blanket ban amounts to an economic ambush,” one industry source said. “It fails to account for the thousands of jobs tied to this value chain—from production to packaging to retail.” Critics argue that rather than outright prohibition, the government should have enforced stricter regulatory controls, including responsible marketing and age-verification systems, without stifling the entrepreneurial ecosystem.
Angst over Customs’ 4% FOB levy
Yet another policy threatening to undercut recent economic gains is the proposed reintroduction of a four per cent Free-on-Board (FOB) levy by the Nigeria Customs Service (NCS)—a move that has stirred palpable unease within the manufacturing sector. Although the implementation was initially suspended to allow for broader consultations with the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and other critical stakeholders, manufacturers remain deeply unsettled by what they describe as an ill-timed and economically hazardous policy proposal.
Ajayi-Kadir minced no words in his condemnation of the development, describing it as “inauspicious and deeply troubling.” “If implemented, this 4% FOB levy will become an additional cost overlay on the already burdensome 1% Comprehensive Import Supervision Scheme (CISS) fee. It is a counterproductive policy at a time when manufacturers are operating in survival mode,” he warned.
Ajayi-Kadir further noted that the levy would only compound existing bottlenecks, particularly when considered alongside a potential 15% increase in port charges, an unprecedented spike in energy costs, and the volatile import duty exchange rate regime. He painted a sobering picture of the current import landscape, revealing that the cost of imports had ballooned by over 118%—from N2.07 trillion in the first nine months of 2023 to N4.53 trillion in the same period of 2024. He warned that any further levies would only deepen inflationary pressures, erode manufacturers’ competitiveness, and jeopardise the very essence of Nigeria’s industrialisation ambitions. “Our members are already overwhelmed. Introducing yet another layer of financial burden will disrupt production cycles and possibly lead to shutdowns and job losses,” Ajayi-Kadir said in a statement issued to The Nation.
Expatriate employment levy sparks concerns
In a bid to bridge the wage disparity between expatriates and Nigerian workers, the Federal Government introduced the Expatriate Employment Levy (EEL) on February 28, 2024. The levy mandates companies to pay fees for employing expatriates and sets guidelines to encourage the prioritisation of Nigerians in foreign-owned enterprises. However, this policy was met with strong resistance from manufacturers and business operators. The Manufacturers Association of Nigeria and other stakeholders urged the government to direct the Nigerian Immigration Service (NIS) to halt enforcement of the EEL, warning that the levy could deter much-needed Foreign Direct Investment (FDI) and disincentivise domestic investors alike. “The implementation of this levy without adequate consultation sends the wrong signal about Nigeria’s commitment to maintaining an investment-friendly environment and promoting ease of doing business,” they argued.
Echoing this sentiment, the Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, called for a balanced and pragmatic approach to expatriate employment policies, emphasizing the delicate relationship between local workforce development and sustained FDI inflows.
Operators ask the Fed Govt to walk the reform talk
Beyond policy formulation, the chorus from industry leaders is clear: bold reforms alone are not enough. For these initiatives to translate into tangible progress, they must be followed by diligent, transparent, and consistent implementation. There is a shared conviction among stakeholders that the sustained success of Nigeria’s economic recovery hinges on effective execution of reforms and strategic interventions aimed at reviving the private sector.
Supporting this optimism, the World Bank’s Spring 2025 Africa’s Pulse report forecasts Nigeria’s economy to grow by 3.6 per cent in 2025, building on an estimated 3.4 per cent expansion in 2024. The report further anticipates growth strengthening to 3.8 per cent by 2027, assuming the continuation of current macroeconomic reforms. Industry voices underscore the importance of ongoing efforts. Otunba Meshioye, a respected figure in the manufacturing sector, noted that the sector’s trajectory and the broader economy’s health will depend largely on the successful implementation of passed tax reforms, macroeconomic stability, and investments in infrastructure and technology.
Ajayi-Kadir affirmed this outlook, stating: “Given the series of fiscal and monetary reforms under this administration, we expect the contraction of the economy to ease, ushering in a period of modest growth and exchange rate stability in 2025.”
Other urgent recommendations from manufacturers
To accelerate the revival of the manufacturing sector and sustain economic growth, manufacturers have urged the Federal Government to urgently address several critical challenges facing the industry. Key among their demands is a suspension of further electricity tariff hikes and a review of previous increases, which have significantly escalated operational costs. They also called for a halt to the persistent interest rate hikes and urged the Central Bank and commercial banks to provide single-digit interest loans tailored for manufacturers to ease their financing burden.
Expanding access to industrial credit remains a priority, with calls for the Bank of Industry’s capital base to be strengthened, thereby enabling greater support for manufacturing enterprises. Manufacturers also stressed the need to reverse the 15 per cent increase in port charges and fast-track the implementation of the National Single Window project to slash trade costs and reduce delays at ports. They further recommended the adoption of a transparent and predictable exchange rate mechanism for customs duties to stabilize import costs and advocated for enhanced collaboration between monetary and fiscal authorities to ensure policies are aligned and mutually reinforcing for economic growth.
“We hope for stability in the foreign exchange market and easing of the inflationary pressure,” added Sola Obadimu, Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA). Obadimu emphasised that the anticipated resurgence of the manufacturing sector in 2025 is largely hinged on a stable forex market that will allow manufacturers to plan their production cycles and manage costs effectively. He also noted that declining inflation rates would pave the way for lower interest rates, creating a more conducive environment for business growth.”
Echoing this optimism, MAN President Ajayi-Kadir expressed confidence that a combination of foreign exchange stability, revised power pricing mechanisms, and effective tax reforms could drive the manufacturing sector to achieve 10 per cent growth in 2025. “If all these measures are implemented effectively, we expect a significant improvement in the sector’s performance and growth,” he concluded.
In a world where command-and-control leadership is fast becoming obsolete, a quiet revolution is stirring—powered not by charisma or clout, but by coaching. At the 2025 International Coaching Week in Lagos, leaders gathered not to dictate, but to reflect. In a city known for noise and ambition, they embraced curiosity, empathy and inquiry—unveiling why coaching is no longer optional, but essential to driving the kind of change Africa urgently needs, report Associate Editor ADEKUNLE YUSUF and EMMANUEL CHIDI-MAHA
In the sweltering heart of Lagos, where ambition hums louder than the city’s ever-present traffic and ideas bloom with the tenacity of jacaranda trees in full flourish, something quietly radical unfolded during the 2025 International Coaching Week. Beyond the clangour of honking horns and the rhythmic pulse of Nigeria’s most restless metropolis, a different kind of dialogue was taking root—one not driven by authority or agenda, but by inquiry, reflection and intentional growth. Held at the elegant Alliance Française/Mike Adenuga Centre, the weeklong event invited leaders, change-makers, and curious minds into a space where the language of power was traded for the vocabulary of transformation. It signalled a deeper stirring in Africa’s leadership narrative—one where the question is no longer who leads, but how they do so.
Across Africa, and indeed within Nigeria, the urgency for transformative leadership is not just rhetorical. It is real, palpable, and pressing. With entrenched systems still wobbling under the weight of poor governance, social inequity and economic volatility, the question is no longer if change is needed—it’s how to cultivate the kind of leaders who can make it happen. In a country where rigid hierarchies and entrenched mind-sets often constrict progress, the event’s theme—“Coaching as a Catalyst for Transformation”—felt less like an aspiration and more like an imperative. The gathering marked a decade of professional coaching under the International Coaching Federation (ICF) Nigeria Chapter, but it also cast a critical gaze forward.
At its core was a stirring keynote by Retired Brigadier General Dr. Tunde Reis—now a transformational coach and strategist—whose address became the event’s moral compass. With clarity and conviction, he urged leaders to embrace vulnerability, actively listen to younger voices, and use coaching not as a corporate perk, but as the engine of systemic change. His words echoed a truth often ignored in Nigeria’s leadership space: that transformation begins not with titles or tenures, but with self-awareness, empathy and the courage to unlearn. As the curtains fell on the celebration, what lingered was not just applause, but the quiet conviction that a different kind of leadership is both possible—and urgently needed.
Enter coaching—not the buzzword, not the Instagram mantra, but the disciplined, globally regulated, quietly revolutionary practice that is increasingly reshaping what it means to lead. Leadership has long been associated with authority—the kind announced by title, declared by decree, or worn like a badge. But in today’s turbulent world, traditional leadership models, heavy on command and control, are cracking under the weight of modern complexity. What’s emerging in their place is a softer, deeper kind of power: rooted not in the volume of one’s voice but in the clarity of one’s mind, the flexibility of one’s thinking, and the authenticity of one’s presence.
ICF Nigeria’s president, Akanimo Ekong, captured this shift in his welcome address. “Coaching is becoming a strategic tool for growth-minded companies and forward-thinking public leaders,” he said. “Corporate Nigeria and even political Nigeria now understand that coaching isn’t about giving instructions. It is about helping leaders think more clearly, act decisively, and build thriving cultures.” This reframing is not merely semantic—it’s seismic. For years, coaching was misunderstood, often lumped together with mentoring or therapy. Today, thanks to relentless advocacy and tangible results, it is being embraced as a critical lever for transformation—especially in places where outdated leadership norms still dominate boardrooms and bureaucracies.
Ekong explained that a professional coach is not a guru, not a fixer, and certainly not a boss. They are “thinking partners,” skilled in helping executives and policymakers navigate the fog of uncertainty by sharpening their self-awareness and unlocking their strategic acumen. “In today’s dynamic economy, where certainty is scarce,” Ekong noted, “coaching allows leaders to think beyond the old ways of doing things. This is especially important in Nigeria, where leadership transformation can be as critical as infrastructure or capital investment.”
Perhaps nowhere is this transformation more visible than in the Lagos State Government, which has emerged as an unlikely trailblazer in public-sector coaching. Under the stewardship of Governor Babajide Sanwo-Olu, executive teams have been paired with ICF-certified coaches, ushering in a quieter revolution in how policy is shaped, teams are led, and problems are solved. In a country often dominated by top-down governance, this shift is subtle but profound. It signals a move toward more responsive, participatory, and reflective leadership—qualities long absent in the corridors of power.
“Just like you wouldn’t board a plane with a pilot trained in five days,” Ekong warned, “you shouldn’t trust your business strategy or team culture to an untrained coach. What we offer is global-standard professional support.” The push for credentialing is more than about gatekeeping—it’s about safeguarding credibility in an era where anyone with a ring light and a following can claim to be a coach. ICF certification, which requires 500 hours of practice, rigorous assessments, and strict ethical adherence, stands as a bulwark against this growing tide of imposters.
At the heart of the gathering was a keynote that landed not just with applause, but with resonance—a speech that became the intellectual and emotional spine of the day. Retired Brigadier General Dr. Tunde Reis, now a transformational coach and strategist, took the stage with the gravitas of his past and the vision of a new kind of future. With warmth and candour, he urged Nigeria’s leaders to embrace something rarely associated with command: vulnerability. He made the case that true leadership in today’s volatile world demands more than competence—it requires courage, emotional intelligence, and a willingness to unlearn. “When we talk about innovative leadership,” Reis began, “we’re not just talking about incremental change. We’re talking about transformation—deep, systemic, uncomfortable, necessary transformation.”
That kind of shift, he argued, can’t happen without risk. “Innovation comes with failure,” he said plainly. “And most leaders are terrified of failing.” Yet it is precisely in that fear, he suggested, that coaching finds its power—not as a safety net, but as a springboard. He described coaching not as a transactional tool, but as a recalibration of mind-set—a framework that challenges the rigid hierarchies and cultural entrenchments that often choke creativity and exclude younger voices from decision-making spaces. “In this fast-paced world,” Reis declared, “age and experience should serve as a compass, not a roadmap.” His call for intergenerational dialogue struck a nerve. Too often, he noted, Nigerian leadership dismisses the energy and insight of youth. But coaching, he insisted, can shift this dynamic—creating spaces where curiosity is king, where intelligence is collective, and where every voice counts. “The young are not just the leaders of tomorrow,” he concluded. “They are the solution providers of today.”
At the heart of coaching is a deceptively simple principle: listening. And few underscored this better than Dr. Reis. “Nigeria’s economic survival,” he said, “requires collective intelligence and multi-disciplinary collaboration. Coaching enables an environment of curiosity and learning that brings everyone to the table—not just the loudest voice or the highest rank.” In other words, the era of the all-knowing strongman is over. What the future demands are not superheroes, but super listeners—leaders willing to sit in the discomfort of not having all the answers and instead draw strength from the collective. Dr. Reis lamented how hierarchical cultural norms continue to stifle innovation in Nigerian institutions. “Younger, tech-savvy professionals are often side-lined despite having practical insights into modern solutions,” he observed. “Age and experience should serve as a compass, not a roadmap.” This, he suggested, is where coaching makes its most radical contribution. It challenges not only how leaders lead, but also who gets to be heard in the process.
It may seem counterintuitive to the hard-nosed, results-driven executive, but empathy is fast becoming the ultimate leadership superpower. And coaching, with its foundations in presence, listening, and inquiry, builds it into the muscle memory of decision-makers. “It’s about seeing leaders become more empathetic, more effective, and ultimately more human,” Reis reflected. In an era where burnout, mistrust, and disengagement are rife, this is no small feat. Leaders who coach—and who are coached—are better equipped to hold complexity without collapsing into overwhelm. They create workplaces that breathe, where innovation can flourish, and people can thrive. The impact isn’t just emotional—it’s economic. Companies with strong coaching cultures report higher employee engagement, better retention, and improved bottom lines. Governments that prioritize reflective leadership make better policy, build citizen trust, and govern more effectively.
The continent stands at a pivotal juncture. From Nairobi to Abuja, from Cape Town to Accra, the call for a new leadership ethos grows louder. But revolutions do not start at rallies—they begin in rooms like the one in Lagos, where ideas stretch and identities shift. Where a senior civil servant dares to say, “I don’t know.” Where a CEO learns to ask, not just answer. Where a general admits the limits of hierarchy. Coaching, then, is not a luxury. It is a necessity—a quiet force with loud outcomes. It is how leaders trade hubris for humility, control for collaboration, and routine for renewal.
In this way, coaching is more than a method. It is a mind-set. One that says the most powerful leaders are not those with all the answers but those who ask the best questions. It’s about staying curious in a world desperate for certainty. About choosing growth over grit, and wisdom over winning. As ICF Nigeria charts its next decade, its ambitions are lofty but rooted. There is talk of embedding coaching into civil service training, of equipping young professionals with coaching skills early in their careers, of building a future where leadership across sectors is as much about how you think as what you do. And if the Lagos event is any indication, that future is not as far off as it once seemed. More executives are hiring coaches. More public institutions are partnering with certified professionals. More leaders are realising that transformation doesn’t begin with strategy—it begins with self.
So why do leaders need coaching to drive transformative change? Because change is messy. Because people are complex. Because the future is unpredictable. And because even the boldest vision will falter if not carried by leaders who are self-aware, emotionally intelligent, and relentlessly curious. In a world clamouring for transformation, coaching doesn’t just help leaders reach higher. It helps them go deeper. And that, perhaps, is the real revolution.
Nigeria’s economy recorded its fastest growth in nearly a decade in the fourth quarter of 2024, driven largely by bold economic reforms—most notably in the foreign exchange regime. The World Bank has acknowledged that the country is making significant progress in restoring macroeconomic stability, while also reallocating more resources towards human capital development, social protection, and infrastructure. Economic analysts point to the Central Bank’s inflation-fighting measures and the enhanced transparency in the FX market as critical pillars for achieving enduring macroeconomic stability, writes Assistant Editor COLLINS NWEZE
For the World Bank, exchange rate reforms were a key driver of Nigeria’s 4.6 per cent economic growth recorded in the fourth quarter of last year. Spearheaded by the Olayemi Cardoso-led Central Bank of Nigeria (CBN), these reforms unified all exchange rates under the Investors and Exporters (I&E) FX window.
As a result, all foreign exchange applications—including those for medical expenses, school fees, Business Travel Allowance (BTA), Personal Travel Allowance (PTA), and Small and Medium Enterprises (SMEs)—are now processed through the I&E window. The CBN also reinstated the “Willing Buyer, Willing Seller” model within this framework, marking a significant shift in foreign exchange operations.
While the reforms have yielded notable progress, the apex bank continues to reassure both domestic and international investors of its commitment to rebuilding Nigeria’s economic buffers and strengthening financial resilience. For instance, in a bold move to address soaring inflation, the CBN raised the Monetary Policy Rate by 875 basis points to 27.5 per cent in 2024—a crucial step toward curbing inflationary pressures and restoring macroeconomic stability.
In addition, the foreign exchange market—once plagued by over $7 billion in unfulfilled obligations and a fragmented FX regime that encouraged arbitrage—has undergone significant restructuring. The CBN not only cleared the outstanding backlogs but also implemented transparent mechanisms to prevent future accumulation, reinforcing investor confidence and market discipline.
At the unveiling of the Nigeria Development Update (NDU) titled “Building Momentum for Inclusive Growth, in Abuja, the World Bank’s lead economist for Nigeria, Alex Sienaert, disclosed that there was a 4.6 per cent year-on-year growth in the fourth quarter, including continued expansion in early 2025 based on high-frequency business indicators. The World Bank expects Nigeria’s economy to grow 3.6 per cent this year.
Sienaert commended the Nigerian government for implementing macroeconomic reforms that have stabilized the economy.
However, he pointed out that more efforts are needed to ensure that this growth is inclusive, particularly through expanding cash transfer programmes for the vulnerable populations in the country. Sienaert added that international experience shows that the public sector alone cannot generate sustainable economic growth and jobs. He stressed that public resources remain limited and that a successful strategy for Nigeria would involve positioning the public sector to both provide essential services—such as human capital development and infrastructure—and create an enabling environment for the private sector to thrive.
“Nigeria is no exception, particularly since public resources remain constrained. A useful strategy is to position the public sector to play a dual role as a provider of essential public services, especially to build human capital and infrastructure, and as an enabler for the private sector to invest, innovate, and grow the economy,” Sienaert added.
Nigeria’s foreign exchange reforms have created a market-reflective, unified and stable exchange rate, allowing the central bank to rebuild official reserves, now exceeding $37 billion, Sienaert said. “That’s significant because this is the cushion the economy has against external volatility,” he said. The World Bank also said Nigeria’s economy needs to grow at a rate five times faster than its current pace to achieve the $1 trillion target by 2030 as well as address the country’s rising poverty levels.
On his part, Cardoso addressed the role of the Central Bank in safeguarding economic stability, particularly in the foreign exchange market. “We will continue to protect the economy. With that comes a need to be proactive,” he remarked. He expressed confidence that the ongoing policies will lead to a moderation of inflation and interest rates over time. He also stressed the importance of financial inclusion, noting that the CBN is committed to supporting the fintech sector and improving access to finance for all Nigerians.
How it started
On assuming office in October 2023, the CBN leadership prioritized 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 characterized by multiple forex rates, which had encouraged arbitrage opportunities. This regime stifled much needed foreign investment, and led to the depletion of our 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.
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 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 Central Bank of Nigeria (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.
Transparency/confidence building measures
The apex bank 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, recently launched the FX Code, emphasising integrity, fairness, transparency, and efficiency as critical pillars for driving 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 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.
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 was 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.
