Omolola and David were overjoyed when they secured visas to the United Kingdom. Relocating to a more developed country had long been their dream. The couple, married for just under four years, obtained their visas through a study route. Omolola was the student while David, her husband, was listed as a dependant.
However, they were faced with a serious dilemma: whether or not to leave their two-year-and-six-month-old daughter behind in Nigeria to live with her grandmother while they pursued a better life abroad.
“It was quite difficult for me to decide to leave her behind, but I found solace in the fact that she would be staying with my parents and they were sure to take care of her as much as I would have.
“Also, I was not sure how long it would take for us to settle in. So I decided it was better to leave her behind to save her from the troubles,” Omolola said in justifying her eventual option.
“In the first few months of leaving, it was like we could not reach her or get her to talk to us. She was giving us some kind of attitude. I think it was to make us feel guilty for leaving her.”
Asked how she was able to reconnect with her daughter, Omolola said: “We started making videos, sending her gifts and calling often. I mean we made an effort to stay connected with her no matter what.
“Then she started to talk to us again. Now, she is just waiting for us to come get her.”
“For my child, it would have been very difficult for us to settle in if she was with us when we came.
“For instance, my husband and I are working. He works full time, I work multiple jobs at different times.
“You can imagine if she had been with us. There would have been some level of restrictions to the kind of jobs we would be able to do and the times we do them, coupled with me going to school.”
According to the United Nations Department of Economic and Social Affairs’ (DESA), an estimated 1.7 million of Nigerians llivd in the Disapora as of June, 2020.
Taofeeq, a young man in his mid-20s, left Nigeria to study Marine Engineering overseas. After graduating, he returned home and married Shukurat, with whom he had a child.
Dissatisfied with Nigeria’s living conditions, Taofeeq decided to return to Egypt, where he had studied, hoping to secure a well-paying job and eventually bring his family over.
However, life took a different turn, as he could not meet expectations during his four-year stay in Egypt. He ended up marrying another woman there, who gave birth to a son.
Reflecting on his journey, Taofeeq expressed uncertainty about when he would return to Nigeria. He also rued his long absence from his Nigerian wife and the possibility that she may have been unfaithful during his four-year absence.
“I’ve been away for four years now. What is the assurance that she has not been ‘seeing’ another man? It’s doubtful. Money on my mind.
“I don get two boys (two sons from two wives). Na to hustle I dey like dis, and Naija come worst non. Make I no go enter and get stuck like the last time. You understand better,” he said.
Daniella, a 37-year-old mother of two, had butterflies in her belly when her husband was granted the American visa six years ago. For her, it was, indeed, an answer to a prayer, as the ‘breakthrough’ came at a point when she and her husband were facing a serious financial crisis.
Her husband, Emeka, had just unwillingly resigned from his workplace, and they had little savings with no job promised.
When Emeka secured his American visa, their plan was to also relocate his family within two years. Unfortunately, it has been six years now that he has been living apart from his family.
During a conversation with this writer, Daniella said although she was still in constant communication with her husband, she does not know how she would feel or act around him anymore if they eventually reunite.
Danielle said: “It has been six years already. I don’t know how I will act or how we will act around each other when we eventually reunite.
“We do talk on the phone and do video calls, and he is still very responsible for his kids.
“But it feels strange because we have been staying apart for too long. I guess we will have to start afresh.”
Asked how the kids connect with their dad, she said: “My first born is going to be eight. He was still very little when their dad travelled.
“But I gave birth to my second born few months after he travelled, because I was heavily pregnant when he left.
“So, they haven’t seen each other before in real life except on video call. It’s very hard.
“From our experience, I will never advise any couple to stay apart in the name of pursuing greener pastures.
“It’s better they go together, no matter what.”
A social media user known simply as Ada Tolo Finest on Instagram recently shared her experience living without her husband for six years. The middle-aged lady revealed that March 31, 2024 made it exactly six years she last set her eyes on her husband while advising young ladies not to take that route.
In pidgin English, she said: “This month makes it six good years I never use my eyes see my husband.
“It’s not easy! Can you do it? Do you have thick skin? Can you stay more than six years without seeing your husband? Even one year isn’t advisable.
“I cannot even advise my enemy to go into long distance relationship; it’s never a good thing.
“I stayed six good years. If I want to cry, I cry to myself. If I want to vex I vex to myself. Anything you do, you do it alone, even if you’re sick, except your children are with you.
“People will also gossip with your name. So if you want to go into a long distance relationship, know the type of heart you have, because it is not advisable.
“You may be getting the pounds and dollars but you will not have a relaxed mind.
“I am talking to my fellow women. Ask if he would take you along or how many times he would be coming home in a year.”
A child educator, Okeleke Nneka Rosemary, shares the impact of parents’ absence on a child’s emotional and psychological development.
She said: “Ideally, parents have been designed by God to nurture and train their children on the right path.
“Naturally, neglecting or depriving children of the above-mentioned aspect has the tendency to negatively affect their emotional and psychological wellbeing most times, and that is the reality of the emotional damage children experience, especially in the absence of their parents.
“When a parent or parents migrate, it almost every time affects the children emotionally and psychologically in the sense that they are not opportune to express themselves freely with whoever has been assigned to take care of them in the the parents’ absence.
“The children have to deal with living with someone who does not know them as much as their parents.
“Some children experience health and trust issues, which may affect their academic performance and their learning process generally. Most times, they tend to feel insecure.
“As an educator with over three years’ experience, I have had to deal with children whose parents migrated and entrusted them in the care of a family member, or close friend trusting me with details that are crucial about them.
“This is another thing that affects the children, because the people they are supposed to emotionally pour out their mind to are not available.
“On many occasions, we have heard about the physical abuse a girl child suffers in the hands of an abuser; the case of a boy child involved in illicit acts, while the children deal with peer pressure and many more.
“Now, the question is, do we advise parents who find greener pastures elsewhere to reject the opportunity because of their children?
“It depends on how grounded they are with their children and how responsible the family is. Children are fragile emotionally and psychologically, and they must be loved.”
Rosemary cites peer pressure among other long-term developmental consequences that children may face when separated from their parents at critical stages. According to her, children can be influenced negatively through peer pressure if proper observation is not carried out at every critical stage of their lives.
She said: “One of the worst things that can happen to a child is lack of parental guidance and monitoring. This can cause children not to relate or connect with their parents.
“Instead, they find solace amongst their peers, and this is dangerous. The teenage stage is a very crucial stage.
“Many things evolve, which include smoking, bad manners, curiosity, unwanted pregnancy, and a lot more, and these can jeopardise the mental and psychological well-being of the children as they grow.
“Having both parents out of one’s sight for any reason, whether good or bad, tells a lot about the emotional output of a child.
“Such a child grows up to disconnect himself or herself from people. He or she is always moody and sad and pulls away from situations most times.
“This is a wrong sign that shouldn’t be a part of a child’s lifestyle, because they tend to grow with it, and it affects mainly the self-esteem of such a child.
“When children are in the puberty stage, that is the appropriate time parents should guide and teach their children all they want them to know at that stage.
“This stage is critical because self-esteem is a paramount quality that should be taught closely to avoid low self-esteem.
“Low self-esteem deprives the children of the freedom to express themselves. Many children were victims of this, and the aftermath was not palatable, as many still suffer this to date”.
A clinical psychologist and family therapist, Joseph Bassey, also explained that children who are experiencing this may develop attachment issues, weakened emotional bond with absent parents, leading to problems with dependency, taking blame for other people’s fault, always wanting to please everyone as a way to recompense with initial loss of bond.
“There’s bound to be increased behavioral problems. An example is increased defiance or acting out due to stress or unmet emotional needs.
“In the long run, it might turn into conduct disorders if not checked.
“There are bound to be academic struggles too. Those children will experience difficulty concentrating or reduced motivation, which will negatively impact their academic performance.
“There’s going to be a sense of loss. Emotional pain from missing a parent during significant life milestones such as graduation, parents-teachers meeting or birthdays, may contribute to emotional trauma”.
Bassey advised families considering migration to “evaluate readiness: discuss the expectations, sacrifices, and emotional preparation as a family.
“Plan intentionally: Develop a timeline and clear strategy for reunification to minimise separation periods.
“Build a support network by engaging with community groups or extended families to provide emotional support during the separation.
“Open communication, prioritise honest, continuous conversations about feelings and challenges.
“Seeking professional guidance such as family counseling or therapy can prepare families for potential emotional impacts,” Bassey said.
Beneath the weight of precedent and the pull of progress, Nigeria’s legal profession stands at a crossroads. At the maiden Law Week of the NBA Eti-Osa Branch, the urgent task of bridging tradition and innovation took centre stage—reimagining justice not as it was, but as it must become in a digital world, report Associate Editor ADEKUNLE YUSUF and EMMANUEL CHIDI-MAHA
As technology transforms every industry at breakneck speed, the legal profession must evolve—not by forsaking its proud traditions, but by fusing them with the innovations essential to safeguarding rights, reinforcing ethics and driving enterprise. This imperative came into sharp focus at the maiden edition of the Nigerian Bar Association’s Eti-Osa Branch Law Week, held from Friday, 25 April through Tuesday, 29 April 2025, at the Conference Centre of the Naval Dockyard in Victoria Island, Lagos.
Under the banner “Bridging Tradition and Innovation in Law: Advancing Rights, Ethics and Technology,” the Coastline Bar transformed its sea-facing venue into a dynamic forum where senior counsel, magistrates, tech entrepreneurs and young practitioners convened to chart the future of legal practice in Nigeria. Here, between polished panel stages and immersive breakout sessions, delegates confronted the realities of e-filing backlogs, virtual courtroom design, AI-driven research tools, and data-privacy safeguards. The symbolism was unmistakable: leather-bound volumes on one table, laptops streaming live case-management demos on another; bespoke suits clustered around traditional handshake greetings, even as smartphones pinged real-time poll responses. Each conversation underscored a singular truth—Nigeria’s justice system cannot thrive by resting on precedent alone. It must evolve alongside industries powered by code, cloud computing, and machine learning.
In his welcome address, Chairman of NBA, Eti-Osa Branch, Mr. Olanrewaju Bamidele Obadina, expressed profound gratitude as he declared open the maiden Law Week of the Coastline Branch. He recalled that the branch was formally established on February 29, 2024, following the creation of the Eti-Osa Judicial Division—a milestone made possible by the visionary leadership of the Honourable Chief Judge of Lagos State, Hon. Justice Kazeem Olanrewaju Alogba, in whose honour the inaugural lecture was dedicated. Obadina noted that the new branch covers a jurisdiction stretching from Ahmadu Bello Way in Victoria Island to Majek Village, encompassing a vibrant legal and commercial corridor. From inception, the branch engaged in rights-based advocacy and community service. However, its promising start was marked by tragedy—the loss of its pioneer Chairman, Mr. M.M.A. Sanni, in a road accident.
Reflecting on the theme of the event, Obadina said it was chosen deliberately to inspire legal practitioners to uphold timeless values while embracing the demands of modern legal practice. He urged participants to engage fully, recommit to service, and strengthen the profession for future generations. “From the very beginning, the Eti-Osa Branch hit the ground running. We immediately engaged in programmes that reflect the values of the Bar, especially human rights interventions and community engagement. However, our early strides were met with tragedy.
“As legal practitioners, we are called to uphold timeless principles of justice and ethics while responding to the new demands of an increasingly digital and complex world. We must embrace innovation without losing the soul of our profession. This week is not only a celebration—it is a call to recommit ourselves to excellence, unity, and service. I urge all of us to participate actively, share generously, and leave here better equipped to lead in both the courtroom and the community,” Obadina said.
The week’s crescendo arrived on Monday, 28 April, when Dr. Muiz Banire (SAN) stepped to the podium. In a keynote that blended urgency with optimism, he challenged his peers to seize the moment before their practice is left behind. “I must confess it is exciting to be here today to lead discussions on a topic that queries yesterday, reviews the achievements of the moment, and looks into the future of our major—if not only—source of livelihood as lawyers,” Banire told an audience of bar practitioners, magistrates, and technology advocates. His message was clear: conservatism and coded procedures can no longer shield the profession from the tide of innovation sweeping the globe.
Banire painted a stark picture of a justice system in peril. Where is our e-filing system? he asked, lamenting the absence of a reliable digital infrastructure that could speed up case management. Where are the virtual hearing platforms capable of connecting judges, advocates, and witnesses across Nigeria’s vast expanse? More poignantly, where are the competent judges and the enforcement machinery necessary to turn judgments into reality? These rhetorical questions were not mere provocation. They underscored a lived reality in which even routine matters can drag through the courts for decades. Banire recalled a familiar courtroom joke: when an antelope learns the courts “are arresting all goats,” it joins the stampede—knowing it will take at least twenty years to prove its innocence. For many lawyers and litigants, justice is no longer a promise; it is a quagmire of lost files, stalled appeals, and decisions that “are worthless on paper.”
A legal system in crisis
Yet Banire refused to consign the profession to despair. He argued that resurrecting Nigeria’s administration of justice must come before any grand talk of artificial intelligence, virtual courts or blockchain-based registries. Only once the basics—case-tracking systems, digital filings, and transparent roll calls—are in place can true innovation take root. “Our justice system is broken,” Dr. Muiz Banire warned. “I could cite countless more examples in varying shades, but the conclusion remains the same: true justice is not being delivered in this country.” It is little wonder, he argued, that many Nigerians are increasingly turning to “self-help”—a dangerous trend born of deep frustration with a system they no longer trust. This concern is echoed in Aviomoh v. C.O.P. (2022) 4 NWLR (Pt. 1819) 69 at 112, paras. A–B, where Justice Ogunwunmiju of the Supreme Court lamented: “I would strongly deprecate the initiation of false criminal proceedings in cases having the elements of a civil dispute… Any effort to settle civil disputes and claims, which do not involve any criminal offence, by applying pressure through criminal prosecution should be deprecated and discouraged.”
Banire further highlighted how civil matters such as land and business disputes are now routinely handed over to law enforcement agencies, while communities suffer rising cases of extrajudicial killings and contract assassinations. Meanwhile, access to justice is being priced out of reach—court fees, legal retainers, and unofficial costs continue to soar in an unforgiving economic climate.
Justice in Nigeria did not die in a single moment, Banire observed—it was murdered by instalment, eroded gradually like a slow-acting poison or chronic illness we wrongly describe as “sudden.” He urged stakeholders to conduct a serious “prognosis” to identify the forces that have brought the justice system to its knees, starting with the deeply flawed process of appointing judicial officers. Under the Constitution, state Judicial Service Commissions—dominated by the Governor’s appointees—recommend judicial candidates, subject to National Judicial Council (NJC) approval. At the federal level, the composition is similar: mostly sitting judges, two Bar representatives, and one layperson—all appointed by the President. “Once the Governor backs a candidate, the recommendation is as good as done,” Banire said.
Though the NJC has set guidelines for minimum caseloads and judgments for aspirants, Banire warned of widespread “packaging”—states inflating candidates’ credentials with judgments they never authored. This opens the bench to mediocrities and “doubtful characters,” further undermining public trust. “As if incompetence were not damaging enough,” Banire continued, “what about character?” He argued that a morally bankrupt judge is even more dangerous than an unskilled one. Yet integrity, a non-negotiable trait, is too often ignored in the selection process. Shortlists remain hidden until final announcements, denying the public any chance to vet or raise objections. “I’ve long advocated for the public advertisement of judicial candidates and a civil society feedback window—just like we do for Senior Advocate appointments,” he said. “But my calls have gone unanswered.”
Beyond initial appointments, the elevation of judges to higher courts has devolved into raw politicking. While quotas and federal character principles were designed to promote equity, they have instead become veils for backroom deals. “Politicians no longer pretend to be neutral,” Dr. Banire charged. “They want their own judges at every level—‘he has worked for us and deserves a promotion.’” This transactional mindset manifests in rulings that lean toward political loyalty rather than legal principle. Echoing Lord Denning’s warning—“you cannot build something on nothing”—Banire argued that a judiciary weakened at its foundation cannot deliver justice at its highest levels.
These personnel failures are worsened by chronic underfunding. Many courtrooms are dilapidated, judges’ benches unstable, and essential technology virtually non-existent. Without functional e-filing systems, virtual hearing facilities, or prompt disciplinary frameworks, inefficiency festers. Errant judges and court officials often evade consequences due to bureaucratic inertia or insider shielding. “No amount of artificial intelligence hype will fix a system starved of basic infrastructure,” Banire warned. “Until we adequately fund the courts and enforce discipline swiftly and fairly, innovation will remain a pipe dream.”
True innovation means doing things better—more efficiently, equitably, and accessibly. While other professions have embraced technology to remove bottlenecks, the legal sector remains resistant. Many legal practitioners still view AI tools, virtual proceedings, and blockchain-based registries with suspicion, if not outright fear. Banire reminded the audience that law is not static but a living organism. To remain relevant and responsive, it must evolve with technological and societal change. Only then can innovation truly serve justice.
Why re-imagination is necessary
Nigeria’s legal system was built for a world of ink-stained files, clerical bottlenecks and in-person pleadings. But that world is vanishing. The present is defined by rapid case turnover, digital evidence, cross-border disputes, and clients whose expectations are shaped by real-time technology. Today’s legal challenges demand not only new tools, but also new mindsets, delivery models, and ethical guardrails.
Tradition has long been the soul of the legal profession, preserving procedure, precedent, and the gravitas of the courts. Yet tradition is now locked in an uneasy dance with innovation—a force that disrupts the familiar and opens the door to uncharted efficiencies. At the heart of this tension lies a fundamental question: How does the legal profession change without losing its core? With the emergence of Gen-Z lawyers—who bring fresh expectations about communication, culture and conduct—the challenge is urgent. The profession must decide how to reconcile a storied past with the promise of tomorrow, without eroding trust, diminishing ethics, or weakening justice.
Banire believes that technology offers a powerful path to a more accessible and efficient justice system—but only if lawyers, judges, and regulators evolve together. The goal is not to blindly adopt every new tool, but to build a deliberate, ethical, and secure bridge between the legal profession’s time-honoured values and the demands of a digital age. This transformation requires vision, training, and discipline. Innovation must not erode integrity; rather, it should enhance the fairness, transparency, and reach of justice. If done right, this reimagination of the legal system could mark the true rebirth of justice in Nigeria.
Nothing compares to achieving seamless payments at merchant locations using Point of Sale (PoS) and the new Moni App. The payment infrastructure, created by the United Bank for Africa (UBA), is making payment easy and boosting business output for merchant users. Many Small and Medium Enterprises (SMES) across several markets in the country have narrated their experiences in using the bank’s new PoS and Moni App at merchant locations, and all the feedbacks are that payments are received instantly, leaving customers satisfied with the bank’s e-payment operations, writes Assistant Editor COLLINS NWEZE.
The business environment is always filled with expectations from customers. They demand seamless services and when it is time to settle their obligations, they want the payment infrastructure to be smooth in performing that function.
For Aminatu Bashiru, a fabrics trader at Balogun Market in central Lagos, success of her business relies seriously on the efficiency of her bank’s payment infrastructure. She narrated how her business thrives with the support of new Point of Sale (PoS) and Moni App payment infrastructure deployed to her store by the United Bank for Africa (UBA Plc). Bashiru narrated how, over the years, she witnessed shifts in Nigeria’s financial landscape, where new players introduce products and services, middlemen promise quick fixes, but only a few deliver on their promises to customers.
One of the banks that have consistently delivered on its promises to customers is UBA Plc. She narrated how her partnership with the bank has helped her business to grow. “UBA has continued to deliver cutting-edge technology, such as its newly introduced instant settlement feature on its PoS and revamped UBA Moni App. Both payment tools ensure speed and security, helping customers to settle their obligations effortlessly,” she said.
According to UBA led by its Group MA, its payment solution has evolved into a vibrant hub for smooth digital transactions, now featuring a redesigned PoS terminal and an upgraded UBA MONI App. The enhanced PoS terminal offers exceptional performance, providing merchants with instant settlement, real-time tracking, pay-by-link options and a 100 per cent transaction success rate, enhancing speed, transparency and reliability for businesses of all sizes.
On the other hand, the improved UBA MONI App enhances UBA’s agency banking services with new capabilities, including instant settlement, transfer-based payments, secret question verification and a user-friendly design.
It also retains key features such as quick account creation, real-time money transfers, cash deposits and withdrawals, as well as discounted airtime and data. Together, these upgrades ensure a faster, more secure and smoother experience for merchants, agents and customers alike.
UBA’s Group Head, Retail and Digital Banking, Shamsideen Fashola, emphasises the transformative impact of these new improvements and upgrades on SME. “The newly introduced real-time settlement provides the much-needed lifeline for businesses. By ensuring immediate access to funds, we’re empowering merchants to operate with confidence, reinvest quickly and focus on growth rather than worrying about cash flow delays. This is how we drive financial inclusion and strengthen Nigeria’s digital economy,” he said.
This is particularly critical for small businesses operating on thin margins, where cash flow delays can disrupt restocking and payroll. With the elimination of settlement lag, UBA has improved convenience and trust, which is a major barrier to digital payment adoption in Nigeria and Africa.
Fashola adds: “Our goal is to make digital payments smooth and reliable for every merchant, from market stalls to large retailers. When businesses thrive, the entire economy benefits and UBA is proud to lead that change and charge.”
More so, trust is the cornerstone of UBA’s strategy. While fintech startups often struggle with credibility among older merchants and even younger ones, UBA leverages its over seven-decade reputation to reassure wary traders. “I don’t trust these new apps, but I know UBA. Immediately, I was informed about their new PoS and Moni app, I had to get it real quick. Their new PoS don’t fail, and their agents are always available to help; they are like children and family to me,” Aminatu said.
This trust is further enhanced by real-time transaction monitoring, providing merchants with full visibility over payments. Unlike opaque third-party platforms, UBA’s system provides instant notifications and failsafe reconciliations, which are crucial for businesses keeping daily ledgers.
Fashola explains further: “Trust isn’t built overnight as it is earned through consistency, reliability, and transparency. UBA’s long-standing presence in Nigeria means merchants see us as more than a service provider, but as a partner they can depend on.
“For many SMEs, especially in traditional markets, trust is just as important as functionality. That’s why we combine cutting-edge technology with the human touch, agents on the ground, responsive customer service, and complete transparency in every transaction. When a merchant knows their funds are secure and their issues will be resolved, they’re far more likely to embrace digital payments fully.”
Recognising that not everyone carries a bank card, UBA’s Moni App has introduced a new pay-by-transfer feature, enabling customers to easily make payments directly from their mobile banking apps. This move aligns with UBA Moni’s goal to bring more people, especially the financially excluded, into the banking system by working with local agents who understand and speak the language of their communities.
“Many of my customers don’t own physical cards,” Chinedu Okeke, a UBA Moni agent, said, adding that “they just show me their transfer confirmation and I get the alert instantly. It’s fast, secure, and there are no more arguments about whether payment was made.”
Fashola, UBA’s Head of Digital Banking, added that “financial inclusion is about meeting customers where they are. While cards are still relevant, we know that millions of Nigerians prefer to transfer directly from their bank accounts. With UBA Moni’s pay-by-transfer option, we’re streamlining the payment process while still delivering the trusted security UBA is known for.”
Hidden charges and unclear pricing have long been a major pain point for merchants and small businesses. Many traders have complained about unexpected deductions and fluctuating charges from payment providers, which cut into already tight profit margins.
UBA tackles this challenge head-on with clear, upfront pricing and zero hidden charges. Merchants know exactly which fee applies to each transaction type, whether it is card payments, transfers, or other methods.
“We believe fairness is non-negotiable in digital payments. Our merchants deserve to know exactly what a transaction costs, no fine print, no last-minute surprises. This is how we empower businesses to grow sustainably,” Fashola added.
Protecting customers against fraud
The UBA has continued to protect its customers against fraud. According to the bank, fraud remains a top concern for Nigerian merchants.
UBA’s upgraded terminals integrate advanced encryption and multi-factor authentication, while the MONI App adds secret question verification for high-value transactions.
The bank has been at the forefront of combating fraud in Nigeria’s banking sector, thanks to its significant investments in security and its transparent approach to tackling the menace. The bank continually upgrades its services with advanced features designed to help merchants mitigate fraud, particularly incidents stemming from fake alerts and poor network connectivity.
A Lagos-based UBA customer, Chinedu Okeke, said: “With UBA’s new security features, I can verify every transaction before the customer leaves my shop.”
According to him, a system also flags suspicious activity in real-time, a critical safeguard in a market where chargeback scams cost businesses billions annually.
“UBA’s newly upgraded PoS and MONI App is designed to offer solutions to the core issues that merchants contend with daily, such as instant settlements that eliminate cash flow stagnation or robust security features that combat fraud. UBA is at the forefront of establishing new benchmarks for dependability in digital payments.
“With a blend of cutting-edge technology and a reputation spanning decades of being reliable and dependable, UBA is filling the gap between conventional banking and contemporary fintech to make it possible for even the most cautious merchants to adopt digital payments with ease,” he said.
In a chat with reporters in Abuja, the Group Managing Director/CEO of UBA Plc, Oliver Alawuba said financial accessibility is an important factor for Nigeria to achieve $1 trillion economy target set by the Federal Government.
He said: “We can’t get it right when the majority of our people are not in the financial system. We can’t operate at full capacity. So, financial inclusivity must be driven to the extent that we are bringing everyone, every bankable citizen, into the financial system.”
Alawuba further explained that Nigeria’s transformation depends on how effectively the financial sector mobilises capital, supports infrastructure, treats the real sector and invests in digital innovation because strong economies are built on the foundation of strong banks.
CBN on payment modes in Nigeria
According to the Central Bank of Nigeria (CBN), as of June 30, 2024, the payment landscape in Nigeria has undergone significant changes.
This was revealed by CBN Governor, Olayemi Cardoso. While cash remains relevant, the adoption of non-cash payment channels has surged.
Electronic transactions, facilitated by platforms such as the NIBSS Instant Payment (NIP) have become increasingly popular. Nigerians now prefer digital methods for making payments, reflecting a shift away from traditional cash-based transactions.
Available data on non-cash retail payment channels at the end of June 2024 indicated that Internet (Web) Transfer remained the most patronised channel, accounting for 51.91 per cent of the total e-payment transactions, while NEFT was the least, with 0.20 per cent. A detailed breakdown of some of the e-payment channels is as follows:
The apex bank said cash has historically been the most prevalent form of payment in Nigeria. However, the landscape has evolved. In 2011, the CBN introduced the cashless policy. The goal was not to eliminate cash but to reduce its circulation in the economy. The policy encourages more electronic-based transactions, including payments for goods, services, and electronic transfers.
The volume and value of NIP rose to 5,626,762,540.00 and N476.89 trillion in the first half of 2024, up from 4,848,535,512 and N343.94 trillion in the second half of 2023, respectively, indicating increases of 16 per cent and 39 per cent.
This significant growth in the use of the channel was attributed to the cash scarcity experienced in March 2023, which compelled many Nigerians to switch to electronic channels for their transactions. Additionally, the Central Bank of Nigeria’s revised cashless policy, which further limited the amount of cash that could be withdrawn from banks, played a crucial role in promoting the growth of e-payments.
The number of PoS terminals deployed stood at 2,935,765 in the first half of 2024, representing a 20 per cent increase from 2,448,805 in the second half of 2023.
Furthermore, the volume and value of payments via PoS terminals rose to 6,395,670,571 and N85.914 trillion by the end of the first half of 2024, up from 4,974,979,119 and N61.902 trillion in the second half of 2023, representing increases of 29 per cent and 39 per cent in volume and value, respectively.
This growth can be attributed to the shift towards cashless transactions, as the Nigerian populace increasingly embraces digital payment methods over traditional cash transactions. The convenience and speed offered by PoS terminals have made them a preferred choice for everyday purchases, including groceries, utilities and services.
At the just-concluded 2025 Spring Meetings of the International Monetary Fund (IMF) and World Bank Group, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso highlighted the positive impact of banking sector reforms on businesses and the broader economy. Cardoso acknowledged that while the economic reforms were challenging, they are beginning to yield tangible results, citing exchange rate stability, stronger economic buffers, a decline in inflation, and increased participation by foreign investors as clear signs of the early success of the macroeconomic initiatives, writes Assistant Editor COLLINS NWEZE
The adoption of orthodox monetary policies and reforms in the exchange rate regime continue to reverberate across key sectors of the economy. The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, said the reforms would be sustained, noting that they have helped steer the economy through a difficult path toward greater stability.
Globally, the past two years have been turbulent, with economies grappling with the aftermath of the COVID-19 pandemic, the ripple effects of the Russia-Ukraine war on energy and food prices, a surge in global inflation, and the subsequent tightening of monetary policy in advanced markets. Against this backdrop, Cardoso stressed the importance of sustaining and deepening reforms to strengthen Nigeria’s economic resilience and capacity to withstand external shocks.
He emphasised that tackling inflation, maintaining fiscal discipline, and driving economic diversification must remain top priorities. Another critical pillar of the ongoing reforms, Cardoso disclosed, is the commitment to a market-driven foreign exchange system—one designed to boost investor confidence and enhance economic efficiency. “We have embraced market-driven pricing for the naira, significantly enhancing transparency and restoring investor confidence.
Again, thanks to disciplined reforms and policy clarity, the naira has stabilised at a more sustainable level against the U.S. dollar. The once-wide gap between the official and parallel market rates has all but disappeared, a first in Nigeria’s recent history, and speculative arbitrage has all but vanished. “This renewed stability has restored confidence and spurred autonomous inflows through formal channels. These inflows are diversifying our foreign exchange sources beyond oil,” he stated.
Cardoso said that the apex bank has strengthened its monetary buffers and positioned Nigeria to better withstand external shocks. “Indeed, the macroeconomic stability we are beginning to see today would not have been possible without these decisive actions. Nigeria’s external buffers have also strengthened considerably. Our foreign reserves now exceed $38 billion, providing nearly ten months of import cover. This robust buffer enables us to better withstand external shocks – whether from declining oil prices or global financial turbulence – thereby safeguarding our economy,” he said.
Speaking further, Cardoso said that in 2024, Nigeria recorded a balance of payments surplus of $6.83 billion, the strongest in many years, driven by rising exports and renewed capital inflows. “At the same time, we are enhancing the strength of our financial sector. The banking sector recapitalisation is well underway, with strong momentum and stakeholder alignment, and will ensure that Nigerian banks are fully equipped to support the real economy with greater scale, stability, and capacity.
“At these Spring Meetings, our development partners expressed their confidence in Nigeria’s trajectory. Feedback from global investors and the Nigerian diaspora has likewise been overwhelmingly positive, reflecting growing alignment with our economic direction.
“Nigeria is increasingly recognized as a rising economic force, admired for the resolve shown in implementing difficult but necessary reforms. These achievements, while encouraging, only strengthen our resolve to press forward. We will not be complacent. Instead, we will redouble our efforts to ensure these positive trends are sustained,” he stated.
Upon assuming office in October 2023, the apex bank under his leadership prioritised reforms to rebuild Nigeria’s economic buffers and strengthen resilience. Inflation, which had surged to 27 per cent, was one of the most pressing challenges, partly driven by excessive money supply growth. While the GDP growth had stagnated at a meagre 1.8 per cent over the previous eight years, money supply expanded rapidly, averaging about 13 per cent growth annually. This imbalance not only fuelled inflation but also contributed to a significant depreciation of the naira.
Besides, inflation creates uncertainty for households and businesses, acting as a silent tax by eroding purchasing power and driving up living costs. To tackle the pressing challenge of inflation, the CBN acted decisively by raising the Monetary Policy Rate by 875 basis points to 27.5 per cent in 2024—an essential move to contain inflation and restore stability.
FX backlogs cleared
In the foreign exchange market, the country faced a backlog of over $7 billion in unfulfilled commitments and a fragmented FX regime characterised by multiple forex rates, which had encouraged arbitrage opportunities. This regime stifled much needed foreign investment, and led to the depletion of Nigeria’s external reserves, which fell to $33.22bn in December 2023. It must also be understood that the cost of the FX subsidy regime is estimated to far exceed that of fuel subsidies.
The apex bank has also undertaken critical reforms to unify Nigeria’s exchange rate, eliminating distortions and restoring transparency. This unification has enabled it to clear the outstanding foreign exchange obligations, giving businesses—ranging from manufacturers to airlines—the confidence to plan and invest in the future. To further enhance the functionality of the foreign exchange market, the CBN introduced an electronic FX matching system, which has proven effective in other markets.
With these developments came positive Fitch Ratings on Nigeria’s economy, signalling positive fallout from the reforms. The global rating agency said that from exchange rate unification to reduce arbitrage in the markets, introduction of electronic FX matching platform and a new FX code to enhance transparency and efficiency in the market as well as deployment of monetary policy tightening to keep inflation on check, the CBN has demonstrated commitment to achieving sustainable economy growth and exchange rate stability.
Already, the latest Fitch rating moved Nigeria’s long-term foreign-currency issuer default rating (IDR) from negative to stable, meaning that the country stands a better chance of attracting foreign investment, borrow money on international markets at better interest rates, and boost investor confidence. Fitch also applauded government’s commitment to policy reforms implemented since its move to orthodox economic policies in June 2023, including exchange rate liberalisation, monetary policy tightening, and steps to end deficit monetisation as well as fuel subsidies removal. “These have improved policy coherence and credibility and reduced economic distortions and near-term risks to macroeconomic stability, enhancing resilience in the context of persistent domestic challenges and heightened external risks,” the agency stated.
Other policy measures
The apex bank recently took strategic step to enhance transparency and boost market confidence with the inauguration of the Nigeria Foreign Exchange Code (FX Code) in Abuja. The FX Code has so far ignited naira stability at both official and parallel markets. Cardoso also recently launched the FX Code, underscoring integrity, fairness, transparency and efficiency as essential pillars for fostering Nigeria’s economic growth and stability.
He emphasised that the FX Code was built on six core principles: ethics, governance, execution, information sharing, risk management and compliance, as well as confirmation and settlement processes. These principles, he explained, aligned with international standards while addressing the unique challenges within Nigeria’s foreign exchange market. According to Cardoso, “The FX Code represents a decisive step forward, setting clear and enforceable standard for ethical conduct, transparency, and good governance in our foreign exchange market. The era of opaque practices is over. The FX Code marks a new era of compliance and accountability. Under the CBN Act 2007 and BOFIA Act 2020, violations will be met with penalties and administrative actions.”
The CBN has stated that while every effort has been made to ensure that the FX Code comprehensively addresses various aspects of market conduct and practice, it is not intended to be exhaustive. Governor Cardoso also noted that the journey towards market reform is already yielding results. He stated, “The year 2024 was marked by structural reforms that sought to return the naira to a freely determined market price and ease volatility as several distortions were removed from the market.”
Beyond the foreign exchange market, the FX Code forms part of the CBN’s renewed focus on compliance across the financial sector. Its six guiding principles, alongside 52 sub-principles, were designed to become the benchmark for conduct across all participating institutions.
Issued as a guideline for the foreign exchange market, the FX Code is backed by the authority of the CBN Act of 2007 and the Banks and Other Financial Institutions Act (BOFIA) of 2020. These legislative instruments empower the CBN to establish and enforce directives regarding the standards financial institutions must follow in conducting foreign exchange business in Nigeria. The FX Code, therefore, serves as an official directive that all market participants are expected to observe in their operations.
Besides FX Code, the apex bank also introduced the Electronic Foreign Exchange Matching System (EFEMS), which has proven effective in other economies in enhancing the functionality of the foreign exchange market. The EFEMS was meant to check forex market distortions, eliminate speculative activities and instil transparency. The EFEMS, which is commonplace in developed and developing markets, offers real-time information on currency rates, trading volumes and market activity.
Policies attract more dollar inflows
As part of its efforts to boost diaspora remittances and support naira stability, the CBN recently announced the introduction of two new financial products designed to serve Nigerians living abroad. The Non-Resident Nigerian Ordinary Account and the Non-Resident Nigerian Investment Account were created to streamline remittances, encourage investments and foster financial inclusion among Nigerians in the diaspora. It said, “The Central Bank of Nigeria is pleased to inform the general public of the introduction of the Non-Resident Nigerian Ordinary Account and Non-Resident Nigerian Investment Account targeted at Nigerians in diaspora.”
The initiative is also expected to provide a secure and efficient platform for managing funds and investing in Nigeria’s financial markets. Since the beginning of this year, eligible NRNs have continued to get the opportunity to own any of the non-resident Nigerian accounts. The Non-Resident Nigerian Ordinary Account was designed to facilitate remittances by allowing non-resident Nigerians to remit foreign earnings into Nigeria and manage funds in foreign currency or naira. Deposits from sources such as salaries, allowances and dividends are supported, alongside spending on family maintenance, education, and healthcare.
On the other hand, the Non-Resident Nigerian Investment Account provides an opportunity for NRNs to invest in Nigeria’s financial markets, including foreign currency-denominated bonds, fixed deposits, and local assets like equities, government securities, and mortgage products. The CBN explained that both accounts offer currency flexibility, enabling holders to maintain balances in either foreign currency or naira. Account holders will also be able to convert funds between the two currencies at prevailing exchange rates through authorised dealers. The Non-Resident Nigerian Investment Account, in particular, was structured to promote investments in Nigeria’s financial instruments, such as the Diaspora Bond, and encourage active participation in the country’s economic development.
The CBN said the introduction of these accounts will harness the economic potential of Nigerians in the diaspora by boosting remittances and fostering investments in critical sectors. These and other measures, including the granting licences to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and enabling timely access to naira liquidity for International Money Transfer Operators (IMTOs). Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments.
The Nigerian Institute of Medical Research (NIMR), the country’s leading hub for ground-breaking health discoveries, is now fighting for its survival. Crippled by exorbitant electricity bills and plagued by a suspiciously unstable power supply, the once-thriving institute faces a silent crisis. As vital laboratories darken and research grinds to a halt, this situation report serves as a stark warning that Nigeria’s future health security is in grave jeopardy—unless urgent action is taken, reports Associate Editor ADEKUNLE YUSUF
At the Nigerian Institute of Medical Research (NIMR) in Lagos — the country’s premier hub for cutting-edge, life-saving medical innovation — efforts to advance national health are quietly being strangled, not by a lack of will or expertise, but by something as basic, yet devastating, as unreliable electricity supply. On an ordinary day, beneath the calm corridors of NIMR in Lagos, a quiet crisis unfolds. Biological samples lie precariously vulnerable, delicate reagents risk being rendered useless, and multimillion-naira scientific equipment teeters on the brink of irreversible damage. And it all comes down to one grim reality: a relentless battle against electricity providers, a flood of inexplicably ‘crazy’ electricity bills, and a system mired in indifference.
Recently, the Director-General of NIMR, Prof Oladapo Obafunwa, could no longer hold back the rising tide of frustration. In an impassioned address to members of the press, he exposed the unbearable realities confronting Nigeria’s foremost medical research institution—offering a rare, no-holds-barred glimpse into a crisis that threatens not just NIMR’s survival, but the future of medical research in the country.
For many, repeated visits to NIMR have made its critical role in national health advancement increasingly clear. Yet behind its cutting-edge work lies a mounting crisis driven by crippling and outrageous electricity billing—a situation Prof. Obafunwa described as “deliberate attempts to frustrate NIMR.” According to him, Eko Electricity Distribution Company (EKEDC) issued bills nearing N49 million for August, N48 million for September and N44 million for October 2024—charges that, he insisted, bore no clear relation to the Institute’s actual consumption. In an attempt to reduce the financial burden, NIMR was forced to shut down power in its residential quarters daily between 9 a.m. and 4 p.m., despite research activities that require uninterrupted electricity supply.
Prof. Obafunwa highlighted the vulnerability of NIMR’s operations, stressing that the Institute houses temperature-sensitive equipment, delicate reagents often donated by international partners, and biological samples critical to ground-breaking studies. “We are not a hospital generating income from patients or a university collecting school fees. This is a research institute, yet we are being billed outrageously without justification,” he said.
Compounding the situation is the absence of a dedicated electricity meter for NIMR. Repeated requests for proper metering have been denied, with EKEDC reportedly insisting that consumption figures be monitored from their Jibowu office—an arrangement the DG described as “abnormal.” Despite multiple appeals to EKEDC, the Nigerian Electricity Regulatory Commission (NERC) and efforts to install an independent meter, the situation remains unresolved, deepening the crisis and jeopardising the future of critical medical research in Nigeria.
Ironically, just as the Nigerian Institute of Medical Research (NIMR) moved to install its own electricity meter, the Institute’s bill for April soared to an unprecedented N52 million—even amid persistent power outages. “There’s a limit to what we can achieve under these conditions,” lamented the Director-General, Professor Oladapo Obafunwa, warning that some foreign donors have already withdrawn their support due to the ongoing instability. He decried a system where “some people seem determined to feed fat from NIMR,” despite the institution’s vital contributions to Nigeria’s health sector.
In a passionate call for urgent dialogue and accountability, Prof. Obafunwa stressed that the survival of Nigeria’s foremost medical research institution—and by extension, the future of national health innovation—hangs in the balance. “For most of us, we’ve been here a couple of times. We are probably getting more familiar with what’s going on at NIMR and the relevance of NIMR to our nation. Yet, deliberate attempts to frustrate this institution continue—and it centres around power supply,” he said, his voice steady but laden with frustration.
Instead of being supported, NIMR is treated like a cash cow, he noted. To cope, the Institute has resorted to drastic measures: electricity to the residential quarters is cut off daily from 9 a.m. to 4 p.m.; laboratories housing temperature-sensitive equipment now operate under severe restrictions. Essential research—some of it sponsored by foreign donors—is constantly at risk. Equipment and reagents acquired through international goodwill stand in jeopardy because the Nigerian power system has failed those who rely on it most. “We have reagents; we have samples, and they are sensitive to temperature,” Obafunwa explained. “Each time the power is off, you risk losing months, sometimes years, of irreplaceable research.”
Ironically, just as the Nigerian Institute of Medical Research (NIMR) moved to install its own electricity meter, the Institute’s bill for April soared to an unprecedented N52 million—even amid persistent power outages. “There’s a limit to what we can achieve under these conditions,” lamented the DG, warning that some foreign donors have already withdrawn their support due to the ongoing instability. He decried a system where “some people seem determined to feed fat from NIMR,” despite the institution’s vital contributions to Nigeria’s health sector.
In a passionate call for urgent dialogue and accountability, he stressed that the survival of Nigeria’s foremost medical research institution—and by extension, the future of national health innovation—hangs in the balance. “For most of us, we’ve been here a couple of times,” he began, his voice steady but laden with frustration. “We are probably getting more familiar with what’s going on at NIMR and the relevance of NIMR to our nation. Yet, deliberate attempts to frustrate this institution continue—and it centres around power supply.”
Instead of being supported, NIMR is treated like a cash cow, he noted. To cope, the Institute has resorted to drastic measures: electricity to the residential quarters is cut off daily from 9 a.m. to 4 p.m.; laboratories housing temperature-sensitive equipment now operate under severe restrictions. Essential research—some of it sponsored by foreign donors—is constantly at risk. Equipment and reagents acquired through international goodwill stand in jeopardy because the Nigerian power system has failed those who rely on it most. “We have reagents, we have samples, and they are sensitive to temperature,” Obafunwa explained. “Each time the power is off, you risk losing months, sometimes years, of irreplaceable research.”
Paying through the nose, fighting for survival
Just how dire is the power situation at NIMR? On paper, electricity supply should last about 20 hours a day. In reality, it is far worse. “I would cautiously put the real supply at under 10 hours daily,” Obafunwa revealed. “Our maintenance department has kept daily handwritten records since January, and we are now digitising them to create a full graph. Once it’s ready, everyone will see the shameful reality.” In a modern laboratory setting, such unreliability is catastrophic. Research data, live cultures, vaccine materials—all depend on stable electricity. One blackout too many, and months or even years of research could be wiped out. Every minute of darkness erodes the tireless efforts of scientists working around the clock to combat infectious diseases, improve diagnostics, and strengthen Nigeria’s healthcare system.
While grappling with the electricity company, NIMR’s leadership has not remained passive. Obafunwa confirmed that the Presidency and several relevant agencies have been alerted. Ongoing conversations with the Federal Ministry of Health, the House of Representatives Committees, and ministerial aides aim to secure broader support. “We’re pushing for NIMR to be included in federal interventions targeted at universities and teaching hospitals,” he said. These efforts have begun to yield results. The Institute’s electricity budget, previously set at N20 million for 2024, has been raised to N145 million for 2025—a sevenfold increase. Additionally, funds have been approved to commence a phased transition towards alternative energy sources, most likely solar power. “My dream is for NIMR to go off the national grid—at least 80 per cent off,” Obafunwa said with determination. “If we can achieve that, this madness will end.”
Meanwhile, to stave off immediate disaster, NIMR’s management reached a painful compromise. At a recent meeting, it was agreed that the Institute would pay 50% of the disputed April bill—about N26 million—along with the third installment of a N6.7 million backlog and half of the VAT charges. In total, NIMR is parting with nearly N35 million, a stopgap measure intended to buy enough time for continued negotiations without facing an immediate disconnection.
Still, the Director-General remains deeply wary. “Every minute of power shutdown risks losing years of work,” Professor Oladapo Obafunwa warned. “And these same people who frustrate research will be the first to ask, ‘Why is Nigeria lagging behind in innovation?’” At the heart of Obafunwa’s impassioned address was a desperate plea—for understanding, urgent action, and accountability. “It is frustrating,” he said, his voice cracking with emotion. “It is infuriating that some people somewhere just feel they should feed fat on NIMR. They don’t seem to understand—or care—about the implications for healthcare delivery, for research, for our nation.”
His frustration echoes throughout NIMR’s corridors—among scientists forced to rerun ruined experiments, technicians scrambling to salvage temperature-sensitive samples, and administrators struggling to manage impossible budgets. NIMR is not just another government facility; it is Nigeria’s frontline in medical research, a national beacon for indigenous vaccines, cutting-edge diagnostics, and home-grown health solutions. Today, however, that beacon stands perilously close to being extinguished—not from a lack of expertise or commitment, but from the unseen sabotage of systemic neglect.
The ongoing ordeal at NIMR is symptomatic of a deeper national malaise: the tendency to choke the very institutions critical to Nigeria’s development. If the country dreams of becoming a health powerhouse, of standing resilient against epidemics, of producing its own vaccines and leading medical innovation in Africa, institutions like NIMR must be nurtured—not milked dry. When foreign donors pull out after witnessing a system that disrespects its own scientific institutions, when years of painstaking research are lost to preventable power cuts, when brilliant scientists grow demoralised or leave for better opportunities abroad, it is not just NIMR that suffers. It is Nigeria’s future that is mortgaged.
The fight for NIMR’s survival is, ultimately, a fight for the nation’s destiny. As Prof. Obafunwa put it, “You don’t get it in this society. Each time you shut down power, you destroy hope. And yet, when the time comes to ask for donations for research, the very same people responsible will offer nothing.” There are plans to introduce alternative energy solutions and reduce NIMR’s dependence on the unreliable national grid. There is cautious hope that government intervention will finally move from promises to tangible relief. But for now, the struggle continues—a struggle not just for uninterrupted light in NIMR’s laboratories, but for the very soul of Nigerian science. The question remains: Will Nigeria stand with its researchers? Or will it, once again, abandon its brightest minds to grope in the dark?
The Naira-for-Crude policy, designed to ensure the affordability and sustainability of petroleum supply, has sparked a fierce debate among experts. While supporters believe it strengthens the naira and boosts local refinery capacity, critics warn it could destabilise the currency and deter foreign investment. As the policy ends today, its future remains uncertain, with stakeholders divided on whether it should continue or be abolished. Assistant Editor MUYIWA LUCAS delves into the differing perspectives on this contentious issue.
The Naira-for-Crude policy was designed to support the domestic consumption of petroleum products. According to the government’s vision, the policy aimed to ensure a stable supply and optimise the use of local refining capacity. Additionally, it sought to eliminate the challenges associated with sourcing foreign exchange for petroleum imports. Proponents believed that the policy could enhance economic sovereignty and strengthen the local currency. Launched in October 2024, the policy was initially set to run for six months, with the final day scheduled for March 31.
However, just two weeks before the policy’s expiration, a major beneficiary—Dangote Refinery—announced that it would cease selling petrol in naira to the domestic market. This shift was due to the refinery no longer receiving crude oil in naira, but instead being left to refine oil that it imported using dollars. In response, the Nigerian National Petroleum Company (NNPC) Limited acted quickly, stating that it was in talks with Dangote and other local refiners. NNPC reaffirmed that the agreement was for an initial six-month period and subject to review.
Since the Naira-for-Crude policy’s implementation in October 2024, NNPC reported that it had supplied Dangote Refinery with over 48 million barrels of crude oil. As the policy’s end approaches, Zacch Adedeji, the Chairman of the Technical Sub-Committee on Domestic Sales of Crude Oil and Refined Products in naira, emphasised that the arrangement with local refineries had not been discontinued. However, recent developments may signal the conclusion of the policy.
Terms of sale and the debt burden
A key clause in the agreement stipulates that the sale of crude oil in naira is contingent upon the availability of the commodity. However, with the country facing challenges in meeting its production targets, fulfilling domestic obligations has become increasingly difficult. Under the Petroleum Industry Act of 2021, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had, earlier in the year, provided an estimate of the crude oil requirements for local refineries in the first half of 2025. This projection was aimed at ensuring effective capacity utilization of the nation’s domestic refineries through a consistent supply of crude oil.
According to the NUPRC’s forecast for the first half of 2025, the country’s crude oil production is expected to average 2,066,940 barrels per day (Bopd). Of this, the Commission estimated that local refineries would require 770,500 barrels per day (Bopd), which represents approximately 37 per cent of the projected daily production.
“This strategic initiative aligns with Nigeria’s commitment to bolstering its domestic refining capacity and ensuring the sustainability of its oil industry. The first half of 2025 is expected to witness increased synergy between local refineries and producing companies, setting the stage for a more robust and self-reliant petroleum landscape in Nigeria,” the NUPRC Chief Executive, Gbenga Komolafe said.
Stakeholders have raised concerns over the potential abandonment of the Naira-for-Crude policy, especially given that the government is aware of the projected crude oil allocation requirements. Furthermore, the claim of insufficient crude oil for domestic consumption is questionable, considering the clear provisions and guidelines established under the Domestic Crude Supply Obligation (DCSO) by NUPRC. The DCSO is a regulatory framework requiring oil-producing companies in Nigeria to allocate a portion of their crude oil production for domestic refining. This provision ensures a steady supply of feedstock to local refineries, bolsters national energy security, and aligns with Section 109 of the Petroleum Industry Act (PIA) 2021.
Introduced to guarantee a continuous supply of crude oil to domestic refineries, the DCSO aims to reduce Nigeria’s reliance on imported refined petroleum products, enhance local refining capacity, promote the growth of the downstream sector, and stabilise the domestic market. The NUPRC is tasked with enforcing this obligation. The allocation of crude oil for local consumption under the DCSO is determined through a mathematical model that considers factors such as the National Domestic Crude Supply Requirement (DCSRn), the company’s production forecast (Prodi), the national production forecast (Prodn), the company’s Technical Allowable Rate (TARI), and the national Technical Allowable Rate (TARn). For Joint Ventures (JVs), the model is adjusted based on the equity participation of each partner.
Each year, the NUPRC sets the percentage of crude oil allocated for domestic supply based on refining capacity, market demand, and government policy directives. Operators are notified of their obligations under the DCSO biannually, typically on January 1 and July 1. Although the Commission is not responsible for setting the price of crude oil supplied to the domestic market—since upstream activities operate under a deregulated pricing framework as outlined in Section 109 of the Petroleum Industry Act (PIA)—it does ensure that pricing remains fair and reasonable. According to the PIA, pricing is to be determined on a willing buyer, willing seller basis. However, to maintain transparency and fairness, the Commission requires producers and refiners to submit their monthly cargo pricing offers to the Commission.
The provision further stipulates that the pricing of domestic crude oil must align with Section 109 of the PIA 2021 and be based on international benchmarks. Adjustments may be made for factors such as logistics, quality differentials, and regulatory requirements. While the pricing operates on a willing buyer, willing seller basis, in cases of pricing disputes, the parties involved must bring the matter to the NUPRC for resolution. The provision also allows oil companies to export any remaining crude oil after fulfilling their DCSO obligations.
Sources suggest that the unsustainability of the policy is largely linked to several crude-backed loan commitments undertaken by the Nigerian National Petroleum Company (NNPC) Limited, among other factors, which have significantly contributed to the policy’s challenges. The NNPCL’s involvement in crude-backed loan commitments dates to 2019, with a total estimated amount of approximately $22.465 billion in loans to be settled. These agreements include a $750 million vendor financing programme and a $1.5 billion agreement, which expired in May 2023 and November 2024, respectively. Additionally, there is a $3.3 billion emergency crude repayment loan, secured in August 2023 and underwritten by Afreximbank through Project Gazelle Funding Ltd (PGFL), a special purpose vehicle (SPV) incorporated in the Bahamas. This loan was financed upfront by Afreximbank, Oando Plc, and Sahara Energy.
Other notable commitments include a $1 billion crude-backed loan issued during liquidity constraints, a $2 billion loan for Project Leopard, and a $7.5 billion loan for Project Gazelle II, all of which are scheduled for full repayment in January 2029 and April 2034, respectively. Further, NNPCL has other significant loan obligations, such as a $3 billion financing deal for NLNG Train 7, which matures in May 2029; a $1 billion loan for Project Eagle, due in June 2025; and a $300 million loan for Project Brogue, due in January 2027. Additionally, Project Bison—a $1.04 billion credit facility obtained by NNPCL—will mature in December 2026, while the $1 billion Project Yield is set to mature in June 2029. The company also has a $75 million offtake financing arrangement, which is due in October 2029.
There are ongoing discussions within the federal government regarding a new forward sale agreement, which is expected to extend until 2034. This proposed deal is largely driven by Nigeria’s urgent need to settle the Central Bank of Nigeria’s (CBN) outstanding obligations, including $3.2 billion, with $1.2 billion of this amount due in Eurobond yields in 2025. Given the significant financial commitments of both the NNPCL and the country—largely denominated in dollars—stakeholders argue that it is economically illogical for crude oil, which is priced in dollars on the international market, to be sold in naira. The Chief Executive Officer of the Major Energies Marketers Association of Nigeria (MEMAN), Clemet Isong, contended that the forward sales agreements entered into by the NNPCL have resulted in a reduction of the volume of crude oil allocated for domestic consumption.
“You cannot sell what you don’t have. There is no quota set aside for domestic consumption again because we do not have it. Set aside from who? From your own or from the IOC’s own? From who’s own? You don’t have; it’s just not there,” he said.
Isong, who has over 40 years of experience in Nigeria’s oil and gas sector, explained that for such a policy to be both effective and efficient, the country must significantly increase its crude oil production capacity to a level well beyond its current requirements. He further pointed out that, given the NNPC’s heavy debt burden, every dollar earned becomes crucial for debt repayment and ensuring the company’s survival. As a result, the allocation of crude oil for domestic consumption could be significantly impacted.
Implications of halting policy
The future of the policy—whether it continues or is suspended—has sparked a divide among stakeholders and economists. Some argue that the policy is heading in the right direction, while others view it as a potential disruptor to the country’s economic stability. Meanwhile, some critics attribute the situation to policymakers selectively favouring regulations or laws that align with their interests at any given time. From the perspective of those in favour of the policy, its discontinuation could have significant macroeconomic consequences. They fear that suspending the policy may place additional demand pressure on the foreign exchange market, potentially destabilising the prices of commodities that have been gradually stabilising.
Dr. Muda Yusuf, an economist and Chief Executive of the Center for the Promotion of Private Enterprise (CPPE), warned that halting the Naira-for-Crude policy would be a “disturbing development” as it would fundamentally alter the dynamics of petroleum product pricing. “It will significantly change the dynamics of domestic petroleum products pricing. The sustainability of the widely celebrated deceleration of petroleum products prices is now evidently at risk. We may see a reversal of the trend.
“There are other macroeconomic implications. For instance, the demand pressure on the forex market would be elevated, resulting in an exchange rate depreciation scenario. The foreign reserves may come under pressure. All of these could result in adverse macroeconomic outcomes with profound implications for investors’ confidence,” Yusuf warned.
Industry analyst Mayowa Sodipo argued that the question of whether to continue the Naira-for-Crude policy should never have arisen for several reasons. He pointed out that the policy has led to a reduction in petrol prices, fostering greater competition in the market. Furthermore, he noted that it has strengthened the Naira on the international market, as refiners no longer need to use foreign currency to purchase crude oil for their refineries.
Prof Omowumi Iledare, an expert in petroleum economics at the Emmanuel Egbogah Foundation in Abuja, explained the benefits of the policy, stating that it fosters an environment for economic expansion. “One you are thinking of the likelihood of expanded economic outfit in the economy; secondly you are thinking in terms of increasing job creation because now you are using your naira, which is the currency that you are going to use to recover the product that you are selling. It is even to government’s benefit that comes with the naira purchase of crude because it is going to increase the country’s revenue because tax will be taken on the production of the crude that they are using in the domestic economy and the influence of fluctuation in foreign exchange will be diminished,” Prof Iledare explained, adding that “also, the royalty on the oil production for the local refinery will be paid in naira.”
The emeritus professor further argued that the policy helps the Central Bank manage money supply in the economy, as the pressure on the exchange rate often stems from the demand for foreign exchange to import petroleum products. However, he acknowledged that there should be concerns, as this could potentially impact the country’s foreign reserves. He described the policy as “novel” and pointed to other countries that have successfully implemented similar measures. For example, India and China have used their local currencies to conduct international transactions within their own borders, and it has proven successful for them.
“Nigeria would have been the poster child in Africa where we begin to establish the need to use local currency to pay for factor of production; but now we are backing out because there are perhaps certain (and I might be wrong) certain individuals that in the short run seems to be affected. Again, perhaps the NNPCL might be losing the market share in the downstream of wholesale market structure because they may be thinking that the crude oil being sold to Dangote Refinery in naira is increasing its competitive advantage,” Prof Iledare argued.
However, the professor explained that market competition and the in terdependence on commodity pricing significantly influence the market dynamics. He emphasised that this is why industry regulators must advocate for all participants, including other local refiners and consumers. Nonetheless, he stressed the importance of understanding the fundamental workings of the market. On the other hand, stakeholders who advocate for discontinuing the policy often point to Venezuela’s failed attempt in the early 2000s to replace the dollar with its local currency for oil transactions. They argue that the effects of this policy contributed to severe economic instability in the country. These stakeholders caution that Nigeria must proceed with care and learn from historical precedents, as policies that disrupt established international trade norms without adequate safeguards can have unintended consequences.
Meanwhile, some players, such as the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), argue that the Naira-for-Crude transaction framework presents significant risks. They warn that it could destabilise Nigeria’s foreign exchange system and deter foreign direct investment (FDI). Additionally, they contend that the policy could exacerbate the volatility of the Naira against other international currencies.
Supporting its position, DAPPMAN argued that crude oil transactions are traditionally conducted in dollars due to the currency’s stability and global acceptability. They warned that, given the weakened state of the Naira, continuing the policy could alienate trade partners and investors who rely on the predictability and stability of the dollar. The Executive Secretary, Olufemi Adewole, cautioned that failing to align with the international standard of conducting crude oil transactions in dollars could isolate Nigeria from global markets, reducing trade opportunities and discouraging investment inflows.
He further explained that, given the naira’s instability—driven by inflationary pressures and fluctuating exchange rates—tying crude oil transactions to the Naira could exacerbate these issues. “The naira has experienced significant fluctuations over the years, driven by inflation and exchange rate instability. If crude oil transactions are tied to the Naira, these problems will only worsen, potentially triggering capital flight and causing foreign investors to seek alternative markets. This would negatively impact Nigeria’s economic growth, the sustainability of the sector, and the efficiency of the oil and gas value chain,” Adewole stated. He emphasised the need for policies that recognise the unique nature of the oil and gas sector to ensure the country remains competitive on the global stage.
Further outlining the reasons for DAPPMAN’s support for the discontinuation of the policy, Adewole argued that Naira-for-crude transactions could place an unsustainable strain on Nigeria’s foreign exchange reserves. He warned that the Central Bank of Nigeria (CBN) might struggle to maintain currency stability amid insufficient dollar inflows, which would only add to the country’s economic challenges.
“It is almost inevitable that implementing this policy could further deplete Nigeria’s foreign exchange reserves,” Adewole warned. “The CBN may find it increasingly difficult to stabilise the Naira due to inadequate dollar inflows. Since oil transactions have historically been a primary source of foreign exchange, disrupting this mechanism will likely intensify economic pressures.”
Despite this, DAPPMAN stressed the need to balance economic sovereignty with global market realities. “DAPPMAN supports all efforts and policies aimed at strengthening the Naira. However, these strategies must drive substantial economic reforms that address the root causes of the Naira’s weakness. Nigeria must find a balance between national interests and global market dynamics. Economic policies are most effective when they focus on long-term sustainability rather than being shaped by sector-specific demands,” he explained.
Reiterating the need for policies that align with international market standards while ensuring long-term economic stability, Adewole cautioned that the future of Nigeria’s oil and gas sector hinges on pragmatic policies that promote investment, foster transparent competition, and safeguard the country’s foreign exchange reserves. “By creating an environment conducive to private-sector participation, Nigeria can achieve a sustainable energy sector that benefits the broader economy,” he added.
On the other hand, Prof Omowumi Iledare emphasised that the price of petroleum products is directly tied to the price of crude oil. He argued that pricing crude oil in local currency could mitigate the impact of exchange rate fluctuations on petroleum product prices. “So, if crude is bought in dollars but petroleum products are sold in Naira, consumers would bear a double burden when crude prices rise,” he explained. “If the local currency is devalued, the final product’s price will also increase, leading to inflationary pressures. Because crude oil is a critical factor of production, changes in its price significantly affect the broader economy, which creates a dilemma — or even a trilemma — in terms of economic stability,” Prof Iledare concluded.
Purpose achieved or not?
Experts remain divided on the unfolding situation. While some warn of severe consequences if the policy is terminated, especially with a halt in local sales, others argue that the market may not be significantly impacted, given that the sector is deregulated. A recent market intelligence survey conducted by The Nation revealed that the savings from the retail price of petrol in the final month of the Naira-for-crude policy exceeded N113 billion monthly, or approximately N3.8 billion daily. This has provided more disposable income for households. The analysis, based on the average daily petrol consumption of 50 million litres, as indicated by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), also considered price changes by the two main petrol suppliers—Dangote Petroleum Refinery and Nigerian National Petroleum Corporation (NNPC) Limited. Dangote Refinery, which had been selling petrol at N925 per litre, reduced its ex-depot price twice last month, bringing the retail pump price down to N860 per litre. Following the competitive price cut, NNPC, which had been selling petrol at N945 per litre, also lowered its retail price to N860 per litre.
Dr. Yusuf praised the pricing efficiency as a positive development for Nigerians, noting that it has freed up more disposable income for households. He highlighted that this is one of the significant benefits of deregulation. While Yusuf acknowledged that global factors contribute to price reductions, he also pointed out that domestic factors have played a role, particularly the removal of several dysfunctional policies within the oil and gas sector and the foreign exchange market.
“These policies are bringing some efficiency into the market system, and it’s beginning to restore normalcy to the overall economic management. It’s a welcome development. Many of us commend this and hope that the trend continues. Closely related to this is the fact that we’re beginning to see stability in the foreign exchange market. This is another remarkable development that is positively impacting the declining and stabilizing prices of energy, particularly petroleum products.
“So, I think the trajectory is positive, and I hope the government will continue addressing these critical issues that affect citizens’ welfare. We expect to see this progress in other sectors as well—such as cooking gas, diesel, and aviation fuel. We’d like to see deliberate policies to make these improvements happen, because energy prices and exchange rates have been two of the biggest issues we’ve faced over the past year,” Yusuf, an economist, explained.
Conflict and the days ahead
However, these gains might be lost soon. Over the weekend, the Nigerian Economic Summit Group (NESG) raised concerns over the potential cancellation of the naira-for-crude policy, warning that the move could exacerbate Nigeria’s already fragile foreign exchange (FX) pressures. The cancellation of the policy, which was originally aimed at strengthening the naira, is seen as a step backward in Nigeria’s broader foreign exchange strategy.
The Group cautioned that scrapping the initiative could lead to even more significant challenges in managing Nigeria’s forex reserves, which have already been under strain due to fluctuating oil prices and low foreign currency inflows. “This cancellation is a misstep that could exacerbate Nigeria’s already precarious forex situation,” said Tayo Aduloju, the Chief Executive Officer of NESG, adding that the move might have unintended consequences for Nigeria’s currency and oil revenue dynamics.
According to Aduloju, NESG supports the crude-for-naira initiative, if transactions align with prevailing market rates and avoid creating a hidden foreign exchange subsidy. “It solved the issue of local production needs chasing forex. Imagine a big player like Dangote constantly chasing forex every day to buy crude—this automatically increases pressure in the market, and it can be disruptive. The journey is going nowhere to help anyone. So, we encourage the committee to revisit the broad framework,” the NESG explained.
Prof Iledare, however, noted that while the policy might be politically sound, it is economically challenging and could require negotiation rather than imposition. He suggested that it might only apply to government equity oil. “The biggest challenge with the PIA is selective implementation. There’s a difference between the letter of the law and the spirit of the law. When you begin picking and choosing from the law’s provisions, you’re likely to lose the intent of the law, and that’s what I’ve observed over the three years of implementing the PIA,” said Prof Iledare in a national television interview. According to him, the issue in the sector is not necessarily regulatory, but rather with policy formulation and implementation. “There must be a competent, transparent, and apolitical policy institution to formulate policies. The naira-for-crude policy could have been analysed with well-developed benefits, concerns, and a proper cost-benefit analysis,” he said.
The professor of petroleum economics stressed that understanding the price trend of petroleum products is crucial, as they are directly tied to crude oil prices. “If crude oil prices are volatile, petroleum product prices will also fluctuate. What we’ve done by attempting to use our local currency for crude oil transactions is like the passage of the local content law, which is working today. That’s why consistency and sustainability are key—it’s about ensuring access to affordable, available, and sustainable energy. This is the only way to grow the economy,” he stated.
He argued that policymakers must balance short-term challenges with long-term sustainability. “Some decisions require staying the course until optimal benefits are realised. Challenges bring opportunities, and that’s why we need a decision-making process, not just ad hoc responses to current situations. The naira-for-crude policy has only been in place for six months, and we haven’t even allowed it to fully play out so we can see its extreme benefits.”
Global credit rating agency Fitch Ratings has upgraded Nigeria’s credit rating to B, citing a wave of economic reforms that have bolstered policy credibility and eased near-term threats to macroeconomic stability. At the heart of these reforms is the Central Bank of Nigeria’s (CBN) push to formalise foreign exchange activities and strengthen monetary policy transmission. This has been achieved through a mix of policy rate hikes, prudential measures and operational tools such as open market operations—marking a clear departure from years of financial repression, writes Assistant Editor COLLINS NWEZE.
Fitch Ratings’ recent positive report on the Nigerian economy came as no surprise to stakeholders closely monitoring the bold economic reforms championed by the country’s monetary and fiscal authorities. From the unification of exchange rates to curb market arbitrage, to the rollout of an electronic FX matching platform and a new foreign exchange code aimed at enhancing transparency and efficiency, the Central Bank of Nigeria (CBN) has signalled a strong commitment to stabilising the currency. Coupled with a decisive shift towards monetary policy tightening to rein in inflation, these measures underscore the CBN’s drive toward sustainable economic growth and exchange rate stability.
Already, the latest Fitch rating moved Nigeria’s long-term foreign-currency issuer default rating (IDR) from negative to stable, meaning that the country stands a better chance of attracting foreign investment, borrow money on international markets at better interest rates, and boost investor confidence. Fitch also applauded government’s commitment to policy reforms implemented since its move to orthodox economic policies in June 2023, including exchange rate liberalisation, monetary policy tightening and steps to end deficit monetisation as well as fuel subsidies removal. “These have improved policy coherence and credibility and reduced economic distortions and near-term risks to macroeconomic stability, enhancing resilience in the context of persistent domestic challenges and heightened external risks,” the agency stated.
Sustaining FX Code/ EFEMS implementation
The apex bank recently took strategic step to enhance transparency and boost market confidence with the inauguration of the Nigeria Foreign Exchange Code (FX Code) in Abuja. The FX Code has so far ignited naira stability at both official and parallel markets. CBN Governor Olayemi Cardoso recently launched the FX Code, emphasising integrity, fairness, transparency, and efficiency as critical pillars for driving Nigeria’s economic growth and stability. He emphasized that the FX Code was built on six core principles: ethics, governance, execution, information sharing, risk management and compliance as well as confirmation and settlement processes. These principles, he explained, aligned with international standards while addressing the unique challenges within Nigeria’s foreign exchange market.
According to Cardoso, “The FX Code represents a decisive step forward, setting clear and enforceable standards for ethical conduct, transparency and good governance in our foreign exchange market. The era of opaque practices is over. The FX Code marks a new era of compliance and accountability. Under the CBN Act 2007 and BOFIA Act 2020, violations will be met with penalties and administrative actions.”
The CBN has stated that while every effort has been made to ensure that the FX Code comprehensively addresses various aspects of market conduct and practice, it is not intended to be exhaustive. Governor Cardoso also noted that the journey towards market reform is already yielding results. He stated, “The year 2024 was marked by structural reforms that sought to return the naira to a freely determined market price and ease volatility as several distortions were removed from the market.”
Beyond the foreign exchange market, the FX Code forms part of the CBN’s renewed focus on compliance across the financial sector. Its six guiding principles, alongside 52 sub-principles, were designed to become the benchmark for conduct across all participating institutions. Issued as a guideline for the foreign exchange market, the FX Code is backed by the authority of the CBN Act of 2007 and the Banks and Other Financial Institutions Act (BOFIA) of 2020. These legislative instruments empower the CBN to establish and enforce directives regarding the standards financial institutions must follow in conducting foreign exchange business in Nigeria. The FX Code, therefore, serves as an official directive that all market participants are expected to observe in their operations.
Besides FX Code, the apex bank also introduced the Electronic Foreign Exchange Matching System (EFEMS), which has proven effective in other economies in enhancing the functionality of the foreign exchange market. The EFEMS was meant to check forex market distortions, eliminate speculative activities and instil transparency. The EFEMS, which is commonplace in developed and developing markets, offers real-time information on currency rates, trading volumes and market activity.
Understanding monetary policy decisions
In February, the apex bank retained its benchmark lending rate at 27.50 per cent, marking the first time it has opted to maintain the rate in almost three years. CBN had been persistent in raising the lending rates since March 2022 when the rate stood at 11.5 per cent. The Monetary Policy Committee (MPC) of the bank stated that its unanimous decision was influenced by recent macroeconomic developments, which it noted with satisfaction. These include stability in the foreign exchange market, leading to an appreciation of the exchange rate, and the gradual moderation in petrol prices, both of which are expected to positively impact price dynamics in the near to medium term. The benchmark rate is the standard interest rate set by central banks, used to guide lending rates and influence economic activities, inflation, and financial stability. The central bank also retained the asymmetric corridor around the MPR at +500 to -100 basis points.
Cardoso said the committee voted to retain the Cash Reserve Ratio (CRR) at 50 per cent for commercial banks, while maintaining the CRR of merchant banks at 16 per cent. The committee also voted to retain the liquidity ratio at 30 per cent. The CBN has continued tightening monetary policy to curb inflation, implementing a series of interest rate hikes throughout 2024. These decisions were aimed at stabilising the economy amid persistent price pressures. In 2024, the bank raised rates six times, delivering a cumulative increase of 875 basis points. “The committee highlighted the benefits of the improvements in the external sector to exchange rate stability, including the convergence of race between the Nigeria foreign exchange market and the Bureau to change and urge the bank to relent, not to relent in its effort to boost market liquidity,” Cardoso said.
Other highlights of the ratings upgrade
Fitch expects the macroeconomic policy stance to support the move to lower inflation and sustain improvements in the foreign exchange (FX) market’s operation, though it will likely remain much higher than rating peers. It also expects “a continued reduction in external vulnerabilities through further easing of domestic FC supply constraints, while renewed energy sector reforms should help sustain current account surpluses.”
It added: “Greater formalisation of FX activity including the Central Bank of Nigeria’s (CBN) recent introduction of an electronic FX matching platform and a new FX code to enhance transparency and efficiency, along with monetary policy tightening, has led to a greater rise in FX liquidity and general stability in the FX market after a 40% depreciation in 2024, closing the spread between the official and parallel exchange rates.
“Net official FX inflows through the CBN and autonomous sources rose by about 89% in 4Q24, compared to an 8% rise in 4Q23. We expect continued formalisation of FX activity to support the exchange rate, although we anticipate modest depreciation in the short term. The CBN has tightened monetary conditions through a combination of policy rate hikes to 27.5% (up 875bp since February 2024) and use of prudential and operational tools such as open market operations (at rates closely aligned to the MPR) to strengthen monetary policy transmission after years of financial repression.”
Reacting to the Fitch rating, Oladele Adeoye, Chief Rating Officer at DataPro, a Nigerian credit rating agency, said it was a positive development “in all ways.” Adeoye said it would boost investors’ confidence in Nigeria’s Eurobond as people would readily subscribe whenever it is issued. “Good rating also implies lower cost of fund. Of course, there will be inflow of foreign currency into the economy and this will give further room for the CBN to support the local currency and strengthen exchange rate,” he said.
On how the government can improve on this, Adeoye said: “Nigeria must increase productivity that can boost export and lower import. This will enhance the external reserve and improve public finance. “We need to continue to improve our revenue base, and this includes both oil and non-oil revenue.”
Registrar/Chief Executive Officer, Nigeria Institute of Credit Administration (NICA) Chartered, Prof. Chris Onalo, said the national body for credit management said the Fitch rating “means a lot.” He said he could not agree less with the agency’s rating. “It is solid, it is stable, it is progressing, and it has a future outlook,” Onalo said.
On further steps government can take on the economy, he said: “The government should focus on expanding the economy. In other words, all-inclusive economic activities. “The government should fix the infrastructural problem, because that will stimulate future ratings. It should also reduce the cost of doing business drastically. And then fix electricity and clamp down on the local insecurity, like the insurgency is becoming a thing of the past now, but pocket pickers, people that break into offices, and you can arrest that by creating avenues for job, wider job availability for people that are regarded as forgotten miscreants. The Fitch Ratings shows that the country has a stable outlook in terms of investment and that can have a positive effect on our foreign direct investments.”
Other analysts described the Fitch rating as “a significant step forward in restoring investor confidence and economic stability.” According to them, the development means an improvement in Nigeria’s creditworthiness, which could open up new opportunities for the country across several sectors. “A ‘B’ rating from Fitch is a step up, which is generally a positive sign. It means Fitch believes Nigeria’s creditworthiness has improved,” Dr. Balogun said. He explained that the upgrade could enhance Nigeria’s attractiveness to international investors. “A better credit rating makes Nigeria a more attractive place for investors. This could lead to increased foreign investment in various sectors,” he noted.
One of the major implications of the improved rating is that Nigeria may now be able to borrow at lower interest rates. The Fitch Ratings is also expected to allow the federal government to finance projects more efficiently and manage its debt burden more effectively and further send a signal to the global community that Nigeria’s economy is on a more stable footing, which could in turn boost international confidence in the country’s financial environment. Additionally, the new rating could offer Nigeria better access to international financial markets, thereby increasing funding options for both the public and private sectors.
With positive Fitch Ratings which would lead to potentially lower borrowing costs, the government could invest more in infrastructure development—roads, bridges and power plants—thereby attracting both local and international capital. Such investments would support government’s continued drive for infrastructure development and sustainable growth for the economy.
Amid a global shift toward natural healing, Nigeria is harnessing its rich traditional medicine heritage. With growing legislative backing and global interest in natural healing, the Nigerian Natural Medicine Development Agency (NNMDA) is at the forefront of efforts to legitimise, regulate and integrate traditional remedies into Nigeria’s mainstream healthcare system, reports Associate Editor ADEKUNLE YUSUF
As the global wellness movement leans increasingly towards organic and nature-based solutions, Nigeria is taking bold steps to bring its rich heritage of traditional medicine into the mainstream. At the forefront of this transformation is the Nigerian Natural Medicine Development Agency (NNMDA), which is steadily working to validate, standardise and promote natural medicine practices across the country.
From herbal teas to plant-based remedies, Nigeria boasts an extensive pharmacopeia built on centuries of indigenous knowledge. Yet, for decades, this vast resource remained underutilised, largely confined to informal settings and often dismissed in modern medical circles. That tide is now turning. With global attitudes warming towards natural health remedies and the urgent need for affordable, accessible healthcare back home, Nigeria is poised for a traditional medicine renaissance.
NNMDA’s renewed energy under the leadership of its Director-General, Prof Martins Emeje, is already drawing attention from key stakeholders, including the National Assembly. During a recent visit to the Nigerian Natural Medicine Development Agency headquarters in Lagos, the House Committee on Legislative Compliance, led by Badau Yusuf Ahmed, expressed firm support for the agency’s strategic plans to mainstream traditional medicine and create employment opportunities across all 774 local government areas in Nigeria. According to him, the House of Representatives has committed to fully backing the NNMDA’s efforts to advance natural medicine development in the country. Lawmakers, he said, believe that this initiative will not only enhance healthcare delivery but also improve access to affordable, locally sourced medications for Nigerians. They pointed out that with the right investment and support, the growth of Nigeria’s natural medicine sector could significantly reduce the nation’s reliance on imported pharmaceuticals.
Reaffirming the legislature’s commitment, Ahmed emphasised that large-scale development of natural medicine has the potential to drive substantial job creation and contribute to the economic empowerment of communities nationwide. “This move by the NNMDA to develop and promote traditional medicine is encouraging. This will reduce costs and dependence on foreign medicine. So, at the same time, this plan will help our teeming youths by creating job opportunities in our communities across the country.
“The NNMDA DG has informed us of its plans, and the only thing is to encourage him to formalise everything in writing and submit it to us. We’ll take it from there and put it into action,” Ahmed said during the committee’s visit.
Under the visionary leadership of its Director-General, the NNMDA has launched a series of strategic initiatives aimed at repositioning natural medicine as a credible, accessible and scientifically backed option for healthcare delivery in Nigeria. With a mandate to research, develop, document, and promote the nation’s natural medicine resources, the agency is bridging the gap between traditional knowledge and modern science. “Our mission is simple yet profound — to mainstream traditional medicine in Nigeria by ensuring it is safe, effective and globally competitive. We are committed to evidence-based research that not only validates indigenous remedies but integrates them into the national health system,” said Prof Emeje.
Indeed, NNMDA’s blueprint for reform is comprehensive. With a clear focus on research, validation, capacity building and policy integration, the agency aims to ensure that traditional remedies are safe, standardised and effective. More than this, Emeje always enthuses that the agency envisions a Nigeria where the country’s vast biodiversity is not only harnessed for improved healthcare delivery but also becomes a pillar of economic growth. “Our goal is to liberate Nigerians from the overdependence on imported medicines and reclaim ownership of our indigenous knowledge. With adequate support and funding, Nigeria can lead the herbal medicine market in Africa and become a net exporter of high-quality, scientifically backed products.”
To achieve the ambitious goal, the agency is currently seeking N2 billion in funding to operationalise its plan. One key element of this is the deployment of 15,480 trained personnel across the nation’s 774 local government areas. These community-based teams would identify, document and develop natural remedies unique to each region—a model that could revolutionise disease management and prevention nationwide. “Each community has unique flora, fauna, and minerals. These should be explored for diseases peculiar to those communities,” Emeje explained.
Indeed, the concept is rooted in science. Diseases, according to the NNMDA, often have environmental factors. Therefore, the local ecosystem is the best place to seek natural solutions. The novel plan by the NNMDA aligns with the World Health Organisation’s (WHO) push for countries to integrate traditional medicine into their national healthcare frameworks. To ensure quality and safety, the NNMDA boss said his agency is working on a national herbal pharmacopoeia—a scientifically validated database of Nigerian medicinal plants and their uses. A digital pharmaceutical information system and a knowledge repository of traditional healing practices are also underway, designed to give future generations of Nigerians access to validated, regulated indigenous medical knowledge.
The agency is also conducting clinical trials on several herbal formulations to tackle common and chronic ailments, including malaria, diabetes, hypertension, sickle cell anaemia, urinary tract infections, arthritis, and various skin conditions. Such trials are essential not only for domestic approval but also for international acceptance. According to Emeje, NNMDA’s strategic goals have also attracted partnerships, including Memorandum of Understanding (MoUs) with strategic health and research organisations to scale up research and commercialisation efforts. The NNMDA DG said every partnership his agency entered into is a deliberate agenda that aims to leverage human capacity to broaden the reach of NNMDA’s research outcomes and initiatives, contributing to the growth and global recognition of Nigeria’s natural medicine research efforts.
Moreover, policy reforms now require traditional medicine practitioners to undergo certified training, ensuring professionalism, safety and standardisation. “Without proper training and certification, we cannot guarantee that patients are getting safe and effective treatments,” Emeje said. “We’re formalising the sector—this is no longer an informal, word-of-mouth trade.”
Several herbal products formulated and launched
In another significant step toward improving public health and strengthening the country’s traditional medicine sector, NNMDA has launched a new line of indigenous herbal products. These formulations are aimed at tackling some of Nigeria’s most pressing health challenges, including cholera, antimicrobial resistance (AMR), snakebites and livestock diseases. Developed through a blend of time-tested traditional knowledge and modern scientific research, the products underscore the agency’s commitment to making natural medicine a credible and accessible component of mainstream healthcare.
Among the flagship innovations is a herbal remedy specifically designed to combat cholera—a waterborne disease that continues to pose a serious threat in many parts of Nigeria. The formulation, derived from locally sourced medicinal plants known for their antibacterial and anti-diarrheal properties, was developed in collaboration with traditional healers and scientific researchers to ensure its safety and efficacy. This marks a critical advancement in the use of natural medicine for combating endemic diseases.
In addition to cholera, the agency is addressing the global threat of antimicrobial resistance (AMR) by introducing herbal products with potent antimicrobial properties. These natural formulations are intended to serve as alternatives to conventional antibiotics, particularly in rural and underserved communities where access to modern healthcare remains limited. By promoting the responsible use of traditional remedies, the agency aims to reduce dependence on synthetic antibiotics, which is one of the major drivers of resistance.
Beyond the health impact, the initiative has far-reaching socio-economic benefits. NNMDA is deliberately involving local communities by sourcing raw materials from Nigerian farmers and working closely with traditional herbalists. This inclusive approach not only ensures authenticity in the production process but also stimulates rural economies, creates jobs, and supports sustainable agricultural practices. It reflects a broader strategy to integrate healthcare improvement with economic empowerment.
The commercialisation of these herbal products is a key component of NNMDA’s long-term vision. The agency is currently forging partnerships with local distributors and international pharmaceutical firms to scale up production and extend the reach of these remedies beyond Nigeria’s borders. The goal is to make scientifically validated traditional medicines widely available, particularly in remote areas where conventional healthcare services are scarce. With the right investment and regulatory support, these products could position Nigeria as a leader in Africa’s traditional medicine market.
The agency’s work also extends to other critical health concerns. In regions like Gombe State, where snakebites remain a significant threat, NNMDA has developed a herbal antidote using local plant resources. In collaboration with partners from India and the Netherlands, it is also developing herbal treatments for livestock diseases, addressing a major concern for the country’s agricultural sector. To fast-track the integration of these remedies into the national healthcare system, NNMDA is actively engaging with regulatory bodies, including the National Agency for Food and Drug Administration and Control (NAFDAC). Several products are already in advanced stages of development, pending regulatory approval for clinical trials and mass production, with the agency remaining committed to expanding its portfolio of indigenous medicines and new products set for release later this year.
Getting the much-need legislative backing
The House of Representative members have not just expressed moral support—they’ve begun backing their endorsement with legislative action. Months before their visit to NNMDA, lawmakers had adopted a motion sponsored by Emmanuel Ukpong-Udo of Akwa Ibom State, urging a national shift in mindset toward natural medicine. Ukpong-Udo noted that globally, nature-based remedies are becoming mainstream and that Nigeria should not be left behind. He described traditional medicine as the most accessible and preferred health solution in many communities and cautioned against continued subservience to imported pharmaceutical products.
Following this, the House mandated its Committees on Healthcare Services and Science and Technology to work with stakeholders and the NNMDA to strategise on the full integration of traditional medicine into Nigeria’s healthcare framework. Their tasks include creating awareness, boosting local confidence in natural remedies, and encouraging local innovation in pharmaceutical sciences. “We are committed to ensuring that NNMDA’s goals are not just dreams on paper but realities that improve lives and reduce our health sector’s financial burden,” Ahmed reaffirmed.
According to the WHO, over 80 per cent of the global population uses traditional medicine in some form. The global herbal medicine market is projected to surpass $600 billion by 2033, with Africa’s share expected to rise significantly due to increasing interest in biodiversity and natural health. For Nigeria—Africa’s most populous country with an estimated 10,000 medicinal plant species—this presents a unique opportunity. If properly harnessed, traditional medicine could become a significant foreign exchange earner, much like cocoa or oil once were. Emeje believes Nigeria is sitting on a goldmine. With the right investments, he says, the country could be exporting medicinal plants and finished herbal products within a year. More importantly, it could bring healthcare to the doorsteps of millions who currently have limited or no access to modern medicine.
Backed by legislation, partnerships, and funding, NNMDA’s vision is rapidly becoming reality—driving down healthcare costs, creating jobs, and restoring pride in Nigeria’s indigenous knowledge, while positioning the country as a rising force in the global natural medicine economy.
In a bold effort to strengthen Nigeria’s non-oil exports and boost the country’s standing in global trade, the Central Bank of Nigeria (CBN) and the Bankers’ Committee are rolling out strategic interventions to upgrade the quality, packaging and competitiveness of locally manufactured products. Through targeted investments in technology, aggressive capacity building for manufacturers and deeper collaboration between banks and producers, the new focus is to transform made-in-Nigeria goods into globally competitive brands. Backed by reform-driven policies to eliminate structural barriers, the initiative aims to boost confidence in Nigerian exports, unlock fresh foreign exchange inflows and strengthen the country’s long-term economic resilience, writes Assistant Editor COLLINS NWEZE
Attracting international buyers for export products requires a multifaceted strategy that encompasses thoughtful product design, high-quality packaging, and stringent quality control measures—making the products highly competitive and appealing in global markets. Establishing a strong digital footprint, participating in international trade fairs, and engaging with key stakeholders such as banks, regulatory bodies, and policymakers can significantly enhance manufacturers’ access to global buyers. When these efforts succeed, they lead to increased foreign exchange inflows from export earnings, ultimately contributing to a stronger exchange rate and the steady growth of the nation’s foreign reserves.
Experts agree that increased foreign exchange (forex) inflows bring significant benefits to the domestic economy and align with the Central Bank of Nigeria’s (CBN) efforts to ensure price and exchange rate stability. Under the leadership of Governor Olayemi Cardoso, the apex bank has intensified efforts to boost forex inflows and ensure accessibility for businesses that rely on foreign exchange for their operations. A key quick win in this drive is enhancing the global competitiveness of Nigerian export products—through improved standards, branding, and market access.
Additionally, the CBN is advancing several initiatives to attract forex, including boosting diaspora remittances through innovative product offerings, licensing new International Money Transfer Operators (IMTOs), implementing the willing buyer–willing seller FX model, and ensuring timely naira liquidity for IMTOs. These measures are streamlining forex inflow channels and positioning the economy for stronger, more sustainable growth.
Diaspora remittances to Nigeria—estimated at $23 billion annually—remain a vital and reliable source of foreign exchange for the domestic economy. In addition to this, the CBN is exploring other sources and implementing policies aimed at sustaining and increasing dollar inflows. The CBN’s strategic initiatives have contributed to steady growth in remittance volumes, in line with its ambitious target to double formal remittance receipts within a year. Remittance inflows are expected to rise further as the CBN continues to restore public confidence in the foreign exchange market, foster a stable and inclusive banking system, and promote price stability—all of which are critical to long-term economic growth.
Director of Trading at Verto, Charlie Bird, noted that Nigeria’s dollar liquidity dynamics have become more balanced, allowing foreign investors and international airlines to repatriate funds with greater ease. Speaking at the Cordros Asset Management seminar titled “The Naira Playbook,” Bird described Nigeria as the new darling of foreign investors—thanks to improved dollar liquidity driven by the Central Bank of Nigeria’s (CBN) ongoing reforms.
As part of these reforms, the CBN under Governor Cardoso recently introduced two innovative financial products aimed at serving Nigerians in the diaspora and boosting remittance inflows. These initiatives, alongside the licensing of new International Money Transfer Operators (IMTOs), implementation of the willing buyer–willing seller FX model, and provision of timely naira liquidity to IMTOs, are part of broader efforts to strengthen the foreign exchange market and support economic stability.
Upgrading product quality for export
The Central Bank of Nigeria, in collaboration with the Bankers’ Committee, is driving initiatives aimed at improving the quality and competitiveness of Nigerian products in global markets. According to the CBN, Nigerian manufacturers can only thrive internationally if their products meet the quality, packaging and branding standards required to compete effectively with global counterparts. While many Nigerian products still fall short of these standards, the banking sector is expected to play a pivotal role in helping businesses enhance their global competitiveness. This includes financing improvements in production, packaging and branding. To increase the visibility and appeal of locally made goods and services abroad, there is a pressing need for better product presentation and stronger market positioning. With the right support, Nigerian businesses can scale up to meet international demand and unlock new export opportunities.
Speaking during a Bankers’ Committee meeting in Lagos, the Director of the Consumer Protection and Financial Services Department at the Central Bank of Nigeria (CBN), Dr. Aisha Olatinwo, stated that with ongoing support from the apex bank and commercial banks, local businesses are better positioned to thrive in global markets. She, however, acknowledged that several challenges continue to hinder the growth of Nigerian-made goods. Represented by the Deputy Director of the department, Nelson Amuwa, Dr. Olatinwo noted that the CBN is actively working to address constraints related to product quality, packaging, branding, and global market readiness—factors that limit the competitiveness of locally produced goods and services.
Echoing her views, the Executive Chairman of the Lagos State Internal Revenue Service (LIRS), Ayodele Subair, emphasised the crucial role of the financial sector in supporting the sustainability and long-term success of Nigerian businesses. He said: “The Bankers’ Committee plays a vital role in facilitating financial inclusion and driving Made-in-Nigeria products. By working together, stakeholders can unlock the full potential of Nigeria’s financial system and promote export diversification and support local businesses.”
While delivering his keynote address, Dr. Bamidele Ayemibo emphasised the need for Nigerian manufacturers to prioritise product quality, modern packaging, and strong branding. According to him, these elements are essential to enhancing the competitiveness of Nigerian products in both regional and international markets. Raising some posers, Ayemibo said: “From manufacturing to fashion, to technology and to the industry, our ability to compete depends on how well we can align to embrace productivity and deliver consistent, high-quality products that command respect in global markets.
“By deepening these partnerships, we can identify and dismantle barriers to growth, encourage innovation, and scale up the support structures that enable enterprises to thrive in competitive environments. The Nigerian banking sector remains a critical industrial foundation to build Nigerian products, opportunity-building initiatives, and investment technology. Banks are well-positioned to support businesses in enhancing their competitive opportunities,” he stressed.
Nigerian manufacturers, he said, “should ensure that the products are attractive and suitable for specific markets. And utilise packaging as a branding tool. Packaging can serve as a critical component of branding. Nigeria should design packaging that not only protects the product but also tells the story and resonates with the consumer.”
Also speaking at the event, the President of the Manufacturers Association of Nigeria (MAN), Francis Meshioye, described the town hall meeting as both timely and necessary. He, however, lamented the increasingly harsh operating environment for the manufacturing sector. According to Meshioye, manufacturers spent a staggering N1.3 trillion on the cost of funds in 2024 alone. He decried the prevailing interest rates—ranging between 35 and 37 per cent—as a major disincentive to business growth and sustainability.
He urged the CBN and the Bankers’ Committee to introduce long-term financing options tailored for manufacturers, with more favourable terms that support rather than stifle industrial productivity. “It is critical at this point for the CBN and the Bankers Committee to fund production at cheaper rates, and also fund backward integration, amongst others. That’s only to cut down the excess amount expended on cost of funds which is adversely affecting production in the country.”
The Central Bank of Nigeria recently released revised guidelines for International Money Transfer Services (IMTS) in Nigeria, marking a significant shift in how International Money Transfer Operators (IMTOs) operate within the country. These updated guidelines reflect the CBN’s ongoing commitment to enhancing transparency, boosting operational efficiency, and increasing diaspora remittance inflows through formal channels.
In a related circular titled “New Measures to Enhance Local Currency Liquidity for Settlement of Diaspora Remittances,” the apex bank reiterated its dedication to strengthening Nigeria’s foreign exchange market infrastructure. The circular outlines key initiatives designed to streamline remittance flows, including providing licensed IMTOs with direct access to naira liquidity from the CBN—thereby enabling the timely and seamless disbursement of remittances to beneficiaries.
In a report analysing the new circular, analysts at Duale, Ovia & Alex-Adedipe, a specialised law firm with experts in key areas of practice, explained that the revised guidelines now allow International Money Transfer Operators (IMTOs) to conduct the payout of foreign remittances through agents, designated as Authorised Dealer Banks (ADBs). The guidelines stipulate that IMTOs must enter into formal agreements with ADBs, clearly outlining the terms and conditions of their partnership. Additionally, IMTOs are required to notify the Central Bank of Nigeria whenever they appoint a new ADB.
Furthermore, the guidelines specify that IMTOs must receive foreign remittances in a designated account held with the ADB. This account, the report clarified, must be separate from other accounts maintained by the IMTO. The guidelines also mandate that ADBs and IMTOs disburse the proceeds of foreign remittances to beneficiaries in naira.
To ensure the effective implementation of the new circular and to promote transparency and accountability in Nigeria’s foreign exchange market, the CBN has established that transactions confirmed before noon on any given trading day will be eligible for same-day settlement. This measure is designed to expedite the process for all stakeholders, including remittance beneficiaries. The apex bank further directed that foreign exchange payments can be made either through a bank account with the Authorised Dealer Bank (ADB) or in cash, with the condition that cash withdrawals do not exceed $200. If a beneficiary does not have an account with the IMTO’s ADB, the ADB is required to credit the beneficiary’s account at another bank. Notably, the guidelines also prohibit IMTOs from purchasing foreign exchange from the domestic market to settle funds for their customers. The key significance of the circular lies in the introduction of measures that enhance IMTOs’ access to naira liquidity, thereby facilitating the timely settlement of diaspora remittances.
Under the revised guidelines, eligible IMTOs can now directly access the Central Bank of Nigeria (CBN) window or use their Authorised Dealer Banks (ADBs) to execute transactions involving the sale of foreign exchange in the Nigerian market. This change allows IMTOs to purchase naira directly from the CBN or through their ADBs for settling remittances, significantly improving local currency liquidity. This marks a notable departure from the previous guidelines, as highlighted earlier. Foreign exchange transactions will now be converted at the prevailing Nigerian Autonomous Foreign Exchange Market (NAFEM) rates, as referenced by a recognized market benchmark.
Additionally, both IMTOs and ADBs are required to submit daily regulatory returns to the CBN, detailing all relevant information on the sources of funds. Eligible IMTOs must also confirm their ADBs and provide standard settlement instructions to ensure the smooth implementation of these new measures. Analysts have noted that this circular represents a significant step forward in enhancing foreign exchange liquidity in Nigeria. By granting IMTOs direct access to naira through the CBN window or ADBs and imposing strict regulatory and reporting requirements, the CBN aims to streamline remittance flows, ensuring that funds are processed swiftly and securely through official channels.
Diaspora remittances gain more attention
In a bid to boost diaspora remittances and support the stability of the naira, the Central Bank of Nigeria recently introduced two new financial products designed specifically for Nigerians living abroad. The Non-Resident Nigerian Ordinary Account and the Non-Resident Nigerian Investment Account are intended to streamline remittance processes, encourage investment, and promote financial inclusion among Nigerians in the diaspora. It said, “The Central Bank of Nigeria is pleased to inform the general public of the introduction of the Non-Resident Nigerian Ordinary Account and Non-Resident Nigerian Investment Account targeted at Nigerians in diaspora.”
The initiative is also expected to provide a secure and efficient platform for managing funds and investing in Nigeria’s financial markets. Since the beginning of this year, eligible Non-Resident Nigerians (NRNs) have been given the opportunity to open any of the newly introduced Non-Resident Nigerian accounts. The Non-Resident Nigerian Ordinary Account is designed to facilitate remittances by enabling non-resident Nigerians to send foreign earnings into Nigeria. It also allows account holders to manage funds in either foreign currency or naira. This account supports deposits from sources such as salaries, allowances, and dividends, while also catering to expenditures on family maintenance, education and healthcare.
In contrast, the Non-Resident Nigerian Investment Account provides NRNs with the opportunity to invest in Nigeria’s financial markets. This includes a range of investment options such as foreign currency-denominated bonds, fixed deposits, local equities, government securities and mortgage products. The CBN explained that both accounts offer currency flexibility, allowing holders to maintain balances in either foreign currency or naira. Account holders will also be able to convert funds between the two currencies at prevailing exchange rates through authorised dealers.
The Non-Resident Nigerian Investment Account, in particular, is designed to promote investment in Nigeria’s financial instruments, such as the Diaspora Bond, and encourage active participation in the country’s economic development. The CBN stated that the introduction of these accounts aims to harness the economic potential of Nigerians in the diaspora by increasing remittances and fostering investments in critical sectors. In addition to these initiatives, the CBN is also granting licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and ensuring timely access to naira liquidity for IMTOs, all of which contribute to a more efficient and stable foreign exchange market.
Dr. Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria, explained that diaspora remittances are a vital source of foreign exchange for Nigeria, complementing both foreign direct investment and portfolio investments. He highlighted that the CBN’s initiatives have contributed to the continued growth of these inflows, aligning with the CBN’s goal of doubling formal remittance receipts within a year. Gwadabe also emphasised that, given the CBN’s ongoing efforts to strengthen public confidence in the foreign exchange market, build a robust and inclusive banking system and promote price stability, the flow of remittances into the economy is expected to increase—fostering sustained economic growth.
In the report “Diaspora Remittances: The Power Behind Africa’s Sustainable Growth”, Mohamed Touhami el Ouazzani, Regional Vice President of Africa at Western Union, emphasized that while remittances can be measured by the movement of money, their true impact lies in the lives they change. He revealed that in 2023 alone, $90 billion flowed into Africa from its global diaspora—an amount that rivals the Gross Domestic Product (GDP) of entire nations.
Touhami el Ouazzani noted that remittances represent the deep ties that connect communities across borders, underscoring their significance beyond just financial transactions. “Families with a breadwinner working abroad depend on these funds to provide vital support for day-to-day needs. They also build the foundation for broader financial stability.
“Beyond their immediate impact, remittances are powerful drivers of economic change. They fuel infrastructure development, spur entrepreneurship, and promote financial inclusion – all essential for long-term economic development. Ghana’s National Financial Inclusion and Development Strategy (NFIDS) is simplifying access to remittances, while countries like Kenya, Ethiopia and Nigeria are tapping into diaspora bonds to fund infrastructure and other national projects,” he added.
For remittances to be truly transformational, it starts with understanding and addressing people’s aspirations. Ensuring that individuals—regardless of their financial status—can send and receive funds is crucial. It’s essential to cater to the diverse needs of all, empowering those who strive for more to access the financial support they require. “In a continent renowned for its entrepreneurial spirit, offering multiple channels for remittance access is key. Whether through bank accounts, digital wallets, mobile money apps, or cash pickups, this flexibility ensures that funds are delivered in ways that best suit local realities. Providing innovative and inclusive solutions empowers individuals to not only manage their immediate needs but also to invest in long-term growth opportunities,” he added.
According to him, every remittance is a seed of change— a purposeful investment in a future where borders become increasingly irrelevant. “The future of remittances in Africa transcends mere financial support. By strategically directing funds into sectors that need them most, Africa’s diaspora is not just sending money home; they are building resilient economies and challenging traditional models of progress.
“This power demands that we unite with purpose, reimagine prosperity and empower future generations. The question then becomes whether we are prepared to unlock the continent’s true potential and reshape the global narrative of success,” he stated.
Recent data from the International Monetary Fund (IMF), particularly its Currency Composition of Official Foreign Exchange Reserves (COFER), reveals a growing prominence of nontraditional reserve currencies. These include the Australian dollar, Canadian dollar, Chinese renminbi, South Korean won, Singaporean dollar, and various Nordic currencies.
Stakeholders agree that the initiatives introduced by the Central Bank of Nigeria under Governor Cardoso have not only revitalised the foreign exchange market and ensured lasting stability but have also laid the groundwork for sustainable economic growth. They have applauded the collective efforts from all parties involved, emphasising that the financial system must be equipped to play its crucial role in driving development. They stressed the importance of supporting businesses in reaching new heights, both in domestic and international markets, ensuring that the economy remains resilient and competitive on the global stage.
Not many Nigerians are aware of the role the Michael Imoudu National Institute for Labour Studies (MINILS) plays in labour education. Established via Act Cap 261 of the Laws in 1983, MINILS has been promoting labour education and building the capacity of workers, employers and government officials in labour and industrial relations. In this special report, Assistant Features Editor CHINAKA OKORO examines the trajectory of the country’s foremost labour institute under its current leadership, revealing stakeholders’ call for renewal of its appointment.
The Michael Imoudu National Institute for Labour Studies (MINILS) which was established in 1983 aimed at building the capacity of workers, employers and government officials in labour and industrial relations. This is achieved through training, research and fostering inter-institutional linkages to promote best practices and achieve industrial harmony for sustainable development.
The Institute, named after Nigeria’s foremost union leader, Pa Michael Athokhamien Omnibus Imoudu, undertakes extensive initiatives aimed at building the capacity of workers and their unions; promoting exchange between industrial relations parties in the interest of industrial harmony; developing international linkages to encourage best practices and global solidarity and advancing the frontiers of unionism.
As a result of its role in fostering strategic and peaceful relationships between the government and labour, the former Minister of Labour and Employment, Senator Chris Ngige, in 2022, recommended that labour leaders should visit the Michael Imoudu National Institute for Labour Studies (MINILS) for labour education.
Ngige’s comments came at the peak of labour agitations in the country over the hike in the pump price of petroleum products, economic hardship and other challenges during the administration of former President Muhammadu Buhari.
The former Anambra State Governor emphasised the need to send a new crop of labour leaders to MINILS to study labour-related issues as the constant threat of strikes by labour unions was becoming a disservice to the country.
Not many Nigerians are aware of the role MINILS plays in labour education. Established via Act Cap 261 of the Laws in 1983, MINILS has been promoting labour education and building the capacity of workers, employers and government officials in labour and industrial relations. It does this through regular and in-plant courses and inter-institutional linkages; all aimed at promoting industrial harmony and best labour practices for sustainable national development.
Under the leadership of its current Director-General/Chief Executive Officer, Issa Aremu, the agency has been repositioned to effectively promote labour education, among other mandates.
Since his appointment in 2021 by former President Buhari, Aremu has transformed the agency from an idle institution into a vibrant organisation aligned with its statutory mandate.
Ngige’s recommendation that labour leaders be sent to MINILS is a testament to the progress made by the former General Secretary of the National Union of Textile and Garment Workers under the supervision of the Federal Ministry of Labour and Employment.
That recommendation has since been graciously embraced by trade union organisations.
Transformative leadership
Before Aremu’s appointment in 2021, MINILS was underperforming in its core mandates of education, citizenship engagement, and policy advocacy, which complemented the government’s efforts.
Together with his management team, Aremu has, over the past four years, provided transformational leadership that has repositioned the once-dormant institute into a fast-performing and visible agency under the Federal Ministry of Labour and Employment.
For the first time in its history, the Director-General initiated and inaugurated a corporate Strategic Plan (2022–2026) for the Institute. The plan outlines a framework and roadmap for the systematic growth of MINILS within the context of its enabling statute and the expectations of its stakeholders.
Currently, Aremu has made MINILS more visible and aligned its activities with President Bola Tinubu’s Renewed Hope Agenda. The institute has also been active in promoting industrial harmony in workplaces, social dialogue between labour and the government, youth skill acquisition programmes, youth and women inclusion and mass digital literacy for self-employment and empowerment.
Members of organised trade unions under the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC) and the Nigeria Employers’ Consultative Association (NECA), at both federal and state levels, regularly patronise MINILS for labour education.
As good luck would have it, the Institute, under Aremu’s leadership, has effectively keyed into President Tinubu’s Renewed Hope Agenda.
As part of the President’s focus on workplace harmony for national development, MINILS surpassed its 2024 Ministerial Deliverables Target of 1,250, reaching over 3,000 on-site/online participants at the institute’s headquarters in Ilorin, Kwara State.
The administration’s 8-point agenda and the Labour, Employment and Empowerment Programme (LEEP) spearheaded by the Minister of State for Labour and Employment, Dr Nkiruka Onyejeocha, aim to promote youth employment through skill acquisition and participation in the digital economy.
To drive this mandate, MINILS trained 720 youths from across Nigeria’s six geopolitical zones in entrepreneurial skills, including cinematography, photography, carpentry and textile design.
Having completed the construction of the Entrepreneurship Development Centre in 2022, equipped with sewing machines, photographic tools and carpentry equipment, Aremu has, admirably, diversified the institute’s training beyond traditional courses such as collective bargaining and grievance handling to include mass job creation and poverty eradication through skills acquisition.
Under the Federal Government’s SKILL-UP-ARTISANS (SUPA) programme initiated by President Tinubu, MINILS trained 220 participants in various trades such as tailoring, carpentry and design.
Again, Aremu’s administration has ensured a significant gender mix of male and female participants from unions, employer associations and states, including People with Disabilities (PWDs) in line with the inclusion agenda of the Renewed Hope Agenda.
Participants from all six geopolitical zones attend the institute’s annual training programmes, signifying a national reach and impact.
Another area of achievement in the past four years is Comrade Aremu’s reversal of the infrastructural and environmental decay of the institute.
He reconstructed access roads and extended them to the host community, completed a previously-abandoned U-shaped complex and renovated hostels, a 1,000-capacity auditorium and several training halls.
His role in minimum wage negotiations
During the protracted negotiations on the new national minimum wage, Aremu leveraged over three decades of labour experience. He participated in the South-West Zonal public hearing organised by the Tripartite National Minimum Wage Committee in Lagos on March 7, 2024 and the Policy Dialogue on the New National Minimum Wage Act hosted by MINILS on March 16, 2024.
Following the October 2, 2023 15-point Memorandum of Understanding between organised labour and the Federal Government, President Tinubu inaugurated a 37-member Tripartite Committee on January 30, 2024.
As MINILS Director-General, Aremu initiated a cost-of-living market survey that provided research input into the remarkable negotiations that resulted in a new national minimum wage of n70,000.
Under Aremu’s leadership, MINILS marginally improved its internally generated revenue (IGR) from subsidised courses; though these gains were tempered by inflation and high transportation costs. With improved capital and overhead budgets, MINILS plans to further exceed ministerial targets in line with President Tinubu’s Renewed Hope Agenda.
As an apostle of continuity, Aremu has completed inherited projects, including office blocks, classrooms and hostels; built a crèche for working parents; introduced renewable solar energy; constructed a 10-kilometre access road to the Olulade host community; initiated a new administrative block; and maintained the 15-hectare institute premises.
He has also invested in staff capacity building, paid support staff regularly and enhanced the morale of members of staff, while also increasing the budget and revenue base of the institute.
As a firm believer in mass citizenship engagement, Comrade Aremu has actively promoted awareness of the Renewed Hope Agenda’s labour-related reforms, including the new minimum wage, public transportation alternatives post-subsidy and the student loan initiative. Apart from this feat, he has ensured capacity building of the Institute as part of the Institute’s core mandate by upscaling both on-site and online labour education for improved productivity and industrial harmony in Nigeria and West Africa.
Thousands of public and private sector workers have benefited from regular and tailor-made (in-plant) training delivered through MINILS’ five core departments: Trade Union Education; Labour Management Relations; Academic and Distance Learning; Entrepreneurial Development and Social Protection.
Despite the COVID-19 disruptions in 2021/2022, MINILS organised hundreds of training courses which focused on social dialogue, collective bargaining and peaceful conflict resolution.
Courses also cover labour law, leadership, conflict resolution, work ethics and trade union practice in evolving environments.
Aremu’s role in Tinubu’s election
Aremu’s experience extends to politics. As a seasoned labour leader, he was appointed as the Director of the Labour Directorate of the Asiwaju/Shettima Presidential Campaign Council (PCC) of the All Progressives Congress (APC).
The directorate, inaugurated at the Presidential Villa on September 29, 2022, mobilised labour unions and civil society groups nationwide. It facilitated a Town Hall meeting between the APC presidential candidate and organised labour on December 19, 2022, attended by 1,817 labour leaders from 62 industrial unions.
The engagement was considered the PCC’s most successful and significant contribution to APC’s 2023 electoral victory.
Aremu also delivered his Alapata polling unit in the Baboko electoral ward for President Tinubu and Governor Abdulrahman AbdulRazaq.
As part of his achievements, Aremu revived the hitherto moribund national and international partnerships for MINILS, attracting resources and technical competencies.
The Institute also signed an MoU with the International Training Centre of the International Labour Organisation (ITCILO) for staff training and promotion of decent work.
Other partnerships include with: Friedrich-Ebert-Stiftung (FES); Development Research and Projects Centre (DRPC); Kwara State Government; West African Management Development Institute (WAMDEVIN); National Universities Commission (NUC); University of Ilorin; Lagos State University (LASU); Independent Corrupt Practices and Other Related Offences Commission (ICPC); National Salaries, Incomes and Wages Commission (NSIWC) and Nigeria Institute of Policy and Strategic Studies (NIPSS), Kuru.
International collaborations include the University of Greenwich’s Centre of Research on Employment and Work (UoG-CREW) in London and the International Labour Organisation’s (ILO) ITC in Turin, Italy, which were the two major takeaways from the Nigerian delegation at the 353rd Session of the Governing Body (GB) of the ILO in Geneva, Switzerland.
As his tenure winds down, many believe that Comrade Aremu deserves a renewal of his appointment to continue his impactful reforms at MINILS.
Observers also suggest that the country still needs his wealth of experience to foster productive labour relations between the Tinubu administration and the labour unions.
