The Nation Newspaper

Category: Special Report

  • Inside the N1.3tr CBEX scam that left thousands bankrupt

    Inside the N1.3tr CBEX scam that left thousands bankrupt

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

    • EFCC wades in

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

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

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

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

    In Lagos, the scam that wore a suit

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

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

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

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

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

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

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

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

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

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

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

    The lure before the crash

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

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

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

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

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

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

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

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

    Early looting

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

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

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

    Regulatory gaps

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

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

    EFCC wades in

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

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

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

  • Sustaining monetary, fiscal policies for bank recapitalisation

    Sustaining monetary, fiscal policies for bank recapitalisation

    The emergence of stronger and bigger banks is one of the crucial benefits expected from the ongoing Central Bank of Nigeria (CBN)-led recapitalisation of banks. The apex bank believes that achieving sustainable economic growth requires strong support from the financial system. The financial sector regulator is, therefore, keen on aligning monetary and fiscal policies to achieve government’s vision of growth for businesses and $1 trillion economy size for the country, writes Assistant Editor, COLLINS NWEZE.

    Aligning fiscal and monetary policy objectives comes with great benefits to the economy. The Central Bank of Nigeria (CBN) is at the centre of achieving fiscal and monetary policies collaboration and supporting the government’s plan for $1 trillion economy size.

    For a government that wants to grow its economy to $1 trillion mark, the support of the financial services sector led by the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso is crucial.

    The CBN boss had explained that bank recapitalisation ensures that lenders are well-capitalised, enabling them to take on greater risks, particularly in underserved markets. With stronger capital bases, banks can provide more loans and financial products to Micro Small and Medium Enterprises (MSMEs), rural communities and other vulnerable segments that have previously struggled to access formal financial services.

    The CBN had, on March 28, 2024 announced a two-year bank recapitalisation exercise which commenced on April 1, 2024 and is expected to end on March 31, 2026.

    The recapitalisation plan requires minimum capital of N500 billion, N200 billion and N50 billion for commercial banks with international, national and regional licenses respectively.

    Others included merchant banks N50 billion; non-interest banks with national license N20 billion and non-interest banks with regional license will now have N10 billion minimum capital. The 24-month timeline for compliance ends on March 31, 2026.

    Cardoso said the recapitalisation policy not only strengthens financial stability but also serves as a catalyst for inclusive growth.

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    “By enabling banks to extend more credit to MSMEs, we enhance job creation and productivity. Furthermore, with increased capital, banks can invest in technology and innovation, crucial for driving digital financial services such as mobile money and agent banking. These technologies are important to breaking down geographic and economic barriers, bringing financial services to even the most remote areas,” he stated.

    He said Nigeria has what it takes to deepen financial inclusion and support the growth of business and economy. He said the recapitalisation exercise will also support the government’s efforts to achieve a $1 trillion economy.

    The CBN further underscored the importance of banking recapitalisation as a major catalyst for the achievement of the $1 trillion economy agenda of the government.

    Banking sector remains robust

    Cardoso explained that the banking sector remains robust, with key indicators reflecting a resilient system.

    “The non-performing loan ratio remains within the prudential benchmark of five per cent, showcasing strong credit risk management. The banking sector liquidity ratio comfortably exceeds the regulatory floor of 30 per cent, a level which ensures banks are maintaining adequate cash flow to meet the needs of customers and their operations. The recent stress test conducted also reaffirmed the continued strength of our banking system,” he said.

     “I am pleased to note that a significant number of banks have raised the required capital through rights issues and public offerings well ahead of the 2026 deadline. I believe that the banking sector is in a strong position to support Nigeria’s economic recovery by enabling access to credit for MSMES and supporting investment in critical sectors of our economy,” he said.

    The CBN Deputy Governor, Corporate Services, Ms. Emem Usoro, said the journey to a $1 trillion economy requires structured planning, clearly defined policies, unwavering implementation, and an inclusive approach that aligns public and private sector interests.

    At the just-concluded seminar organised by the CBN for business editors and financial correspondents in Abuja, Usoro said that one of the key components of the $1 trillion ambition is the recapitalisation of Nigerian banks.

    She noted that banks must be sufficiently capitalised to meet the financial demands of a larger and more dynamic economy.

    “As we work towards building a $1 trillion dollar economy, we must consider the recapitalisation of our banks to be able to fund, finance and power the economy, and to favourably compete globally,” Usoro said.

    She further called for a collective effort from all stakeholders, adding that the financial system must be prepared to play its role in powering development.

    “We should particularly pay attention to bank recapitalisation to ensure that our banks are strong, resilient and stable enough to carry out financial intermediation, and the much-needed financing of development projects and programmes,” Usoro said.

    The Group Managing Director of United Bank for Africa (UBA), Mr. Oliver Alawuba described the ongoing CBN bank recapitalisation policy as both timely and essential in positioning the financial system to meet the demands of a growing and globally competitive economy.

    According to Alawuba, the initiative is expected to boost the resilience of the banking sector by strengthening its capacity to withstand economic shocks such as inflation, currency volatility and global geopolitical disruptions. He noted that the policy will also place Nigerian banks on a stronger footing to finance the country’s long-term economic transformation, including funding of large-scale infrastructure and industrial projects.

    Alawuba further stressed that the recapitalisation policy goes beyond regulatory compliance. It is a forward-looking strategy aimed at equipping Nigerian banks to operate at the scale and sophistication required by a trillion-dollar economy. He said the move would enhance the sector’s ability to support traditional economic drivers such as oil and gas, agriculture and manufacturing, as well as emerging sectors such as fintech, green energy and infrastructure development.

    “Nigerian banks need adequate capital buffers to meet the evolving demands of these sectors. Without this, the industry cannot effectively rise to the challenge,” he said.

    Alawuba further pointed out the sharp contrast between Nigerian banks and their counterparts in more advanced economies, where bank assets typically range between 70 and 150 per cent of Gross Domestic Product (GDP). In Nigeria, bank assets accounted for just 11.97 per cent of GDP as of 2024, a gap he said must be addressed if the country’s financial system is to align with international standards.

    He commended the CBN’s recent directive mandating a significant increase in minimum capital thresholds, describing it as recognition of the urgent need for stronger financial institutions capable of delivering on national priorities such as infrastructure expansion, digital transformation, inclusive financial services and economic diversification.

    Alawuba concluded that a robust, well-capitalised banking sector is critical for Nigeria’s aspiration to become a one trillion-dollar economy, and the recapitalisation drive is a forward-looking step to achieve that goal.

    According to the Director of the Banking Supervision Department at the CBN, Olubuka  Akinwunmi provided insights into the state of the banking sector by stating that banks have so far remained within the prudential thresholds stipulated by the regulator, including benchmarks for capital adequacy ratio and non-performing loans.

    “Currently, all our banks are still within the prudential thresholds that were set. And they are actively pursuing various recapitalisation efforts,” Akinwunmi said.

    On the possibility of mergers and acquisitions, Akinwunmi said such developments may occur naturally as banks assess their positions and seek strategic alignments.

    “Banks are currently focused on raising their own capital, but engagements are ongoing and when the opportunities arise, they will be taken,” Akinwunmi added.

    With regard to the licensing of new banks, he confirmed a recent uptick in applications and approvals, noting that the apex bank continues to monitor and support institutions that align with national development goals.

    He said priority sectors such as agriculture, infrastructure and manufacturing are receiving attention from both the government and financial institutions, as they are crucial to achieving a trillion-dollar economy.

    “This year’s national budget reflects a clear emphasis on critical sectors such as health, education, infrastructure and agriculture. Banks are taking cues from these priorities, recognising them as viable areas for business expansion,” Akinwunmi said.

    On how many internationally-active banks had met the new N500 billion capital requirement, he noted that substantial progress has already been made.

    “We are halfway through the journey in terms of timeline, and in terms of capital already raised; we are also halfway through. That is a positive signal,” he said.

    He added that the decision to start the recapitalisation process early has helped insulate the financial system from emerging global and domestic shocks.

    “The emerging global economic shifts and pressures were not lost on the management of the CBN. We started early. If we had waited till now, the challenges would have been greater. But we acted in time,” he stated.

    Dr Akinwunmi expressed his confidence that the recapitalisation requirements will be met, stressing that existing shareholders’ funds continue to serve as a buffer. However, the CBN deliberately opted for fresh capital inflows, particularly from foreign investors who have shown renewed confidence in Nigeria’s financial system.

    “International perception of Nigeria’s banking sector is improving. The reforms over the past year, especially around the foreign exchange regime and improved transparency regarding reserves, have improved investors’ confidence,” he said.

    He cited recent disclosures on Nigeria’s net reserves and improvements in regulatory credibility as key factors that are reshaping the outlook for foreign direct investment in the banking sector.

    On the Loan to Deposit Ratio (LDR), Akinwunmi explained that the current 50 per cent benchmark does not reflect a reluctance to lend but rather a contextual response to inflation and other macroeconomic challenges.

    “As the macro-economic environment stabilises, banks will naturally increase lending. It’s a cautious approach to ensure that lending supports sustainable growth,” he said.

    He also touched on the Cash Reserve Ratio (CRR), stating that there has been marked improvement in transparency. Banks now have a clearer understanding of CRR computations, unlike in the past, which enhances predictability and compliance.

    On Small and Medium Enterprises (SME) funding, he confirmed that banks have continued to make provisions, but the CBN remains actively engaged to ensure proper disbursement and sectorial targeting. Supervisory oversight, he explained, is being deployed to verify compliance and effectiveness of disbursed funds.

    On incentives, he said the most powerful incentive for banks lay in the opportunities provided by a growing economy.

    “A stronger bank can take on big-ticket businesses, including infrastructure financing. The current reforms, such as the infrastructure concession plans, present viable business opportunities for well-capitalised banks,” Akinwunmi said.

    The capital verification process, according to him, is thorough and designed to ensure that only legitimate, unborrowed funds are used for recapitalisation. An industry-wide tracking mechanism has been established to streamline verification across institutions and enhance collaboration.

    “Our examiners follow each capital trail meticulously, moving from one bank to another as necessary. Even if it’s not your bank under verification at that moment, we expect full cooperation to trace the sources of capital,” he said.

    On the broader question of resilience to global shocks, he maintained that Nigerian banks are being positioned to remain attractive to investors and capable of withstanding external disruptions.

    “CBN is monitoring developments closely and adjusting where necessary. The recapitalisation process is not just about compliance — it’s about long-term stability, competitiveness and economic transformation,” he said.

  • Nigeria’s $23.11B net FX reserves strengthen resilience against external shocks

    Nigeria’s $23.11B net FX reserves strengthen resilience against external shocks

    The Central Bank of Nigeria (CBN) has reported a substantial improvement in its Net Foreign Exchange Reserve (NFER) position as of the end of 2024, signalling enhanced external liquidity, a reduction in short-term obligations, and a revival of investor confidence. At $23.11 billion, the NFER is the highest it has been in over three years, providing the economy with greater resilience to withstand external shocks. Additionally, the CBN has opened multiple channels to bolster forex inflows, ensuring adequate liquidity while fostering a stable, transparent, and efficient foreign exchange market, writes Assistant Business Editor COLLINS NWEZE.

    Transparency and compliance are fundamental factors that determine the success of the foreign exchange (forex) market worldwide. In the forex market, transparency is essential in ensuring effective regulation, while operators must adhere to the regulatory guidelines established by central banks.

    In the case of Nigeria, these principles were effectively demonstrated when, last week, the Central Bank of Nigeria (CBN), under the leadership of Olayemi Cardoso, announced a significant improvement in the country’s foreign exchange reserves, reaching $23.11 billion by the end of the previous year. Upon assuming office in October 2023, Cardoso prioritised reforms aimed at rebuilding Nigeria’s economic buffers and bolstering its financial resilience. In the forex market, the apex bank had to confront a backlog of over $7 billion in unfulfilled commitments and a fragmented exchange rate system characterised by multiple forex rates. This situation had created an environment rife with arbitrage opportunities, undermining the market’s stability.

    This fragmented forex regime hindered the inflow of much-needed foreign investment and contributed to the depletion of Nigeria’s external reserves, which fell to $33.22 billion by December 2023. “Over the past year, we have undertaken critical reforms to unify Nigeria’s exchange rate, eliminating distortions and restoring transparency. This unification has enabled us 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, we are introducing an electronic FX matching system, which has proven effective in other markets,” Cardoso said.

    Surge in net FX reserve accretion

    According to data from the CBN, the Net Foreign Exchange Reserves (NFER) reached $23.11 billion, marking the highest level in over three years. This represents a significant rise from $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021. The NFER, which adjusts gross reserves by accounting for near-term liabilities such as FX swaps and forward contracts, is considered a more reliable indicator of the forex buffers available to meet immediate external obligations.

    Additionally, gross external reserves increased to $40.19 billion, up from $33.22 billion at the close of 2023. This surge in reserves reflects a combination of strategic measures taken by the CBN, including a deliberate and substantial reduction in short-term foreign exchange liabilities, particularly swaps and forward obligations. The strengthening of Nigeria’s foreign exchange reserves was further driven by policy actions aimed at rebuilding confidence in the FX market and boosting reserve buffers. This was complemented by a notable increase in foreign exchange inflows, particularly from non-oil sources.

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    As a result, Nigeria now holds a stronger and more transparent reserves position, which better positions the country to withstand external shocks. This expansion occurred while the CBN continued its efforts to reduce short-term liabilities, further improving the overall quality of the reserve position. “This improvement in our net reserves is not accidental; it is the outcome of deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability. We remain focused on sustaining this progress through transparency, discipline and market-driven reforms,” Cardoso commented.

    Reserves have continued to strengthen into 2025. While the first-quarter figures reflected some seasonal and transitional adjustments, including substantial interest payments on foreign-denominated debt, the underlying fundamentals remain solid. As a result, reserves are expected to continue improving throughout the second quarter of this year.

    Looking ahead, the CBN said it anticipates a steady increase in reserves, a projection supported by higher oil production levels and a more favourable export growth environment. This is expected to boost non-oil foreign exchange earnings and diversify external inflows. The CBN said it remains committed to prudent reserve management, transparent reporting and macroeconomic policies that foster a stable exchange rate, attract investment and build long-term economic resilience.

    Sustained liquidity boost for the FX market

    Last week, the Central Bank of Nigeria (CBN) injected $197.71 million into the domestic foreign exchange market. The CBN highlighted recent movements in the forex market between April 3 and 4, noting that these fluctuations reflect broader global macroeconomic shifts currently impacting several Emerging Market and Developing Economies.

    Omolara Omotunde Duke, Director of the CBN’s Financial Markets Department, explained that these developments stemmed from the recent announcement by the United States government of new import tariffs on goods from multiple economies. This has triggered an adjustment period across global markets. Additionally, crude oil prices have weakened, falling by more than 12% to approximately $65.50 per barrel, introducing new dynamics for oil-exporting countries like Nigeria.

    “In line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN facilitated market activity on Friday, April 4, 2025, with the provision of US$197.71 million through sales to Authorised Dealers,” the CBN said.

    “This measured step aligns with the bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market. The CBN continues to monitor global and domestic market conditions and remains confident in the resilience of Nigeria’s foreign exchange framework, which is designed to adjust appropriately to evolving fundamentals,” it added.

     “All Authorised Dealers are reminded to adhere strictly to the principles outlined in the Nigeria FX Market Code and to uphold the highest standards in their dealings with clients and market counterparties,” it further stated.

    Diversifying FX sources to strengthen inflows

    Foreign capital inflows remain a crucial driver in achieving both monetary and fiscal policy stability for the domestic economy. The CBN is actively cultivating additional sources of foreign exchange to increase dollar inflows and improve access for manufacturers and retail end-users.

    Through various initiatives—such as efforts to boost diaspora remittances via new product development, granting licences to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller FX model, and facilitating timely access to naira liquidity for IMTOs—the CBN has streamlined dollar-inflow channels for FX dealers. These measures are designed to stimulate business activity and foster broader economic growth.

    Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), commended these policy shifts, highlighting the creativity, dedication, and hard work that Cardoso has invested in ensuring that more forex flows into the economy and remains accessible to businesses. He stated that diaspora remittances to Nigeria, estimated at $23 billion annually, continue to be a reliable source of foreign exchange for the domestic economy. Additionally, the CBN is exploring other sources and policies to sustain and increase dollar inflows.

     According to him, the CBN’s initiatives have facilitated continued growth in foreign exchange inflows, aligning with the institution’s goal of doubling formal remittance receipts within the year. Remittances to the economy are expected to rise, driven by the CBN’s ongoing efforts to enhance public confidence in the forex market, strengthen a robust and inclusive banking system, and promote price stability—key factors for sustained economic growth.

    Charlie Bird, Director of Trading at Verto, noted that the dynamics of dollar liquidity have become more balanced, with foreign investors and airlines now able to repatriate funds with greater ease. Speaking at the Cordros Asset Management seminar titled “The Naira Playbook,” he highlighted that Nigeria has become a favored destination for foreign investors, thanks to improved dollar liquidity in the economy driven by the CBN’s positive reforms.

    For example, the CBN, under the leadership of Cardoso, recently introduced two new financial products aimed at serving Nigerians living abroad and attracting more diaspora remittances. These measures, along with others such as granting licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller FX model, and ensuring timely access to naira liquidity for IMTOs, are designed to further enhance foreign exchange inflows and strengthen the economy.

    X-raying the revised IMTO guidelines

    The Central Bank of Nigeria recently released revised guidelines for International Money Transfer Operators (IMTOs) in the country. These updated guidelines represent a significant shift in how IMTOs operate, reflecting the CBN’s ongoing efforts to enhance transparency and efficiency in foreign exchange transactions, while also strengthening diaspora remittances into Nigeria.

    A subsequent circular titled “New Measures to Enhance Local Currency Liquidity for Settlement of Diaspora Remittances” underscored the apex bank’s commitment to improving Nigeria’s foreign exchange market infrastructure by increasing the flow of remittances through formal channels. The revised guidelines introduce measures designed to provide licensed IMTOs with access to naira liquidity from the CBN, facilitating the smooth disbursement of remittances to beneficiaries.

    In a report analysing the circular, analysts at Duale, Ovia & Alex-Adedipe, a specialised law firm with experts in key areas of practice, noted that the guidelines allow IMTOs to process foreign remittance payouts through agents, designated as Authorised Dealer Banks (ADBs). These guidelines require IMTOs to formalize their relationships with ADBs by entering into contracts that outline the terms and conditions of their engagement. Moreover, IMTOs must notify the CBN whenever an ADB is appointed.

    Additionally, IMTOs are required to receive foreign remittances into a designated account maintained with ADBs. The analysts explained that the designated account must be kept separate from any other accounts held by the IMTO. The guidelines mandate both ADBs and IMTOs to disburse foreign remittance proceeds to beneficiaries in naira. They clarified that payments can be made either through the beneficiary’s bank account with the ADB or in cash, with the caveat that cash withdrawals must not exceed $200. If a beneficiary does not hold an account with the IMTO’s ADB, the ADB will credit the beneficiary’s account at another bank. Importantly, the guidelines prohibit IMTOs from purchasing foreign exchange from the domestic market to settle funds for their customers.

    A key significance of the circular is the introduction of measures that enhance IMTOs’ access to Naira liquidity, ensuring the timely settlement of diaspora remittances. Eligible IMTOs can now directly access the CBN window or utilise their ADB to conduct transactions involving the sale of foreign exchange in the Nigerian market. This enables IMTOs to purchase Naira directly from the CBN or through their ADBs for settling remittances, thereby improving local currency liquidity. This contrasts with what was obtainable under the guidelines as emphasised above. To ensure effective implementation of the Circular and to promote transparency and accountability in the Nigerian foreign exchange market, the CBN established that transactions executed and confirmed before noon on a trading day are eligible for same-day settlement. This aims to expedite the process for all participants, including remittance beneficiaries.

    The apex bank also directed that foreign exchange will be converted at the prevailing Nigerian Autonomous Foreign Exchange Market (NAFEM) rates, as referenced by a recognised market benchmark. Also, IMTOS and ADBs must submit daily regulatory returns to the CBN, detailing all relevant information on the sources of funds while eligible IMTOs must confirm their ADBs and provide standard settlement instructions to ensure smooth implementation of the new measures.

    Analysts said the circular remains a significant advancement in ensuring foreign exchange liquidity in Nigeria. By granting IMTOs direct access to obtain naira through the CBN window or through ADBs and implementing strict regulatory and reporting requirements, the CBN aims to enhance the efficiency and operations of IMTOs in the Nigerian market. These measures will streamline remittance flows, ensuring that funds move swiftly and securely through official channels.

    All eyes on diaspora remittances

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

    The initiative is also expected to provide a secure and efficient platform for managing funds and investing in Nigeria’s financial markets. Since the beginning of this year, eligible NRNs have continued to get the opportunity to own any of the Non-resident Nigerian accounts. The Non-Resident Nigerian Ordinary Account was designed to facilitate remittances by allowing non-resident Nigerians to remit foreign earnings into Nigeria and manage funds in foreign currency or naira. 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).

    President, Association of Bureaux De Change Operators of Nigeria, Dr. Aminu Gwadabe, explained that diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments. He CBN’s initiatives have supported continued growth in these inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year. According to Gwadabe, remittances in the economy are expected to increase based on CBN’s ongoing efforts to bolster public confidence in the foreign exchange market, strengthen a robust and inclusive banking system, and promote price stability, which is essential for sustained economic growth.

     In a report: “Diaspora remittances: The power behind Africa’s sustainable growth,” Regional Vice President of Africa at Western Union, Mohamed Touhami el Ouazzani, said remittances may be measured through the movement of money, but their real impact is measured in lives changed. He disclosed that in 2023 alone, $90 billion flowed into Africa from its global diaspora, an amount that rivals the Gross Domestic Product of entire nations. He said that remittances symbolise deep ties that keep communities connected across borders. “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 begins with understanding and meeting people’s aspirations. Ensuring individuals who strive for more can send and receive funds, regardless of their financial status, is crucial. We must cater to diverse needs. “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 deliberate investment in a future where borders blur. “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.

  • Women-on-wheels breaking barriers in transportation

    Women-on-wheels breaking barriers in transportation

    For years, truck driving has been seen as a man’s job because of the long hours, heavy machinery and the open road. However, times are changing and so are the drivers. These days, women are not just taking the steering wheel; they are shifting gears and driving change. Women’s incursion into these fields challenges the long-held stereotypes and societal norms that have traditionally made certain occupations exclusive preserve for men. CHINYERE OKOROAFOR reports

    The increased participation of women in traditionally “masculine” jobs, such as construction or engineering, indicates a shift in gender roles and expectations within the workforce. The development has led to greater gender equality and diverse perspectives in various fields as pressed for by the early feminist writers and advocates. The situation has led to breaking of barriers in which women’s incursion into these fields challenges the long-held stereotypes and societal norms that have traditionally relegated certain occupations to men. One of the jobs or professions that seemingly had been the exclusive preserve for men is truck driving.

    For years, truck driving, which is a profession in which trucks are used to convey goods from one point to the other, has long been seen as a man’s job because of the long hours, heavy machinery and the open road. There are many truck driver jobs available, including those for haulage, delivery and more.

    However, times are changing and so are the drivers. At Lafarge Africa, women are not just taking the steering wheel; they are shifting gears and driving change.

    Lafarge Africa PLC, is a leading innovative and sustainable building solutions company and manufacturer of a range of cement brands, has demonstrated its commitment to gender inclusion with the graduation of a new cohort of female truck drivers under its Women-on-Wheels (WoW) initiative. The graduation was held at the Lafarge Driving Institute in Ewekoro, Ogun State.

    The initiative underlines the company’s commitment to fostering diversity and inclusion in the transport and logistics industry.

    Through the Women-on-Wheels initiative, the women are proving that skill, determination and opportunity, not gender, define who should be behind the wheel.

    The Women-on-Wheels initiative was launched in 2019 through the Lafarge Driving Institute.

    Since then, it has evolved into a game-changer in Nigeria’s transportation industry, challenging stereotypes and opening doors for women in logistics.

    The goal is simple but powerful: to train and empower women to become professional truck drivers, ensuring they have the knowledge, confidence and certification needed to thrive in a traditionally male-dominated field.

    On March 26, this year, Lafarge Africa celebrated another milestone when it graduated 17 female truck drivers in Ewekoro, Ogun State.

    The latest batch joins the growing number of over 100 women who have benefited from the programme.

    The women are more than just drivers; they are pioneers, proving that they can handle the demands of the job while maintaining high safety and efficiency standards.

    Lafarge Africa’s commitment to gender diversity is not just about meeting quotas; it is about addressing real challenges in the logistics sector.

    With driver shortages affecting industries worldwide, empowering women to take on these roles is a strategic and socially responsible move.

    Research suggests that female drivers are up to four times safer than their male counterparts, making them a valuable asset in ensuring road safety, reducing running costs and maintaining vehicles better.

    Beyond the numbers, Lafarge recognises the broader impact of women’s economic empowerment. When women are financially independent, entire families and communities benefit from it.

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    This initiative extends far beyond the transport sector as more women earning stable incomes means better access to education, healthcare and improved quality of life for their families.

    Some hurdles

     However, the journey to becoming a female truck driver in Nigeria is not without challenges.

    Many of the women who enrolled in Women-on-Wheels initiatives have had to overcome societal biases, skepticism and even resistance from their own families.

    In a country where traditional gender roles remain deeply ingrained, the idea of women handling heavy-duty trucks is still met with surprise.

    Yet, with every kilometre they drive, the women are reshaping perceptions and proving that competence, not gender, should determine who gets the job.

    While sharing her experiences about the initiative, one of the graduates of the programme, Adobe Favour Ozioma stated that “this opportunity has transformed my life. I am proud to be a part of this pioneering initiative, proving that women can thrive in the transport industry.”

    This shows that for many of the graduates, WoW is more than a job; it is also a symbol of independence and self-sufficiency.

    It is about proving to themselves and the world that they are just as capable as anyone else.

    Lafarge Africa, in collaboration with the Lafarge Driving Institute, provides comprehensive training that goes beyond just driving.

    Participants undergo technical training to understand the mechanics of heavy-duty vehicles, road navigation and truck maintenance.

    Given the high rate of road accidents in Nigeria, safety is a top priority. So, they are trained in defensive driving, emergency response and compliance with transport regulations.

    This translates to lower accident rates, reduced maintenance costs and overall better fleet management.

    The programme also includes soft skills development, covering communication, problem-solving and stress management to help them adapt to life on the road.

    The rigorous training ensures that every graduate is competent and confident in their ability to perform at the highest standard.

    Since its launch, the initiative has gained traction, with increasing numbers of women showing interest in truck driving as a viable career option.

    In the early years, there was hesitancy, but with each successful batch of graduates, confidence has grown within the programme and in the wider community.The impact is also visible within Lafarge Africa’s logistics. At the 2025 Graduation ceremony, the Logistics Director of Lafarge Africa Plc Osazemen Aghatise spoke about the company’s belief in breaking barriers.

    “As much as we understand that we are operating in a male-dominated industry, we have never entertained the idea that gender roles should be brought to the workplace. We trust in potential and mindset. That’s why we don’t set limits for our women because we are of the firm belief that a Lafarge woman is as boundless as the sea,” he said.

    Lafarge Africa remains committed to expanding the initiative.

    There are plans in place to train even more female drivers and integrate them into logistics operations across the country.

    The long-term vision is to make gender diversity in transport the norm rather than the exception.

    The road ahead is open, and the opportunities are endless.

    The women who have taken part in this programme are breaking barriers and setting new standards.

    They are creating a future where no young girl will have to wonder if she belongs in a certain profession.

    The success of WoW is proof that when given the right opportunities, women can excel in any field, including those traditionally dominated by men.

    More importantly, it is a reminder that progress is also about social transformation.

    By empowering women to step into roles previously closed off to them, Lafarge Africa is not just building a stronger workforce; it is building a fairer, more inclusive society.

    As the women take to the roads, they carry with them more than just cargo. They carry the hopes and dreams of a generation that refuses to be limited by outdated norms.

    They drive not just for themselves, but also for every woman who has ever been told, “You can’t.”

    And with every mile they cover, they prove that they can.

  • Enugu’s march towards climate-resilient environment

    Enugu’s march towards climate-resilient environment

    Moved by the impacts of climate change which has become a pressing global concern, the Enugu State Government has launched a Climate Policy, Action Plan and Climate Education Manual in an effort to secure an environment resilient for economic growth. DAMIAN DURUIHEOMA reports.

    As the world grapples with the challenges of climate change, the Enugu State Government has taken some proactive steps towards mitigating its effects. One of the key steps being taken by the government is the launch of a Climate Policy, Action Plan and Climate Education Manual on Monday, March 17, 2025.

    This, being the first sub-national climate policy in Nigeria, is to provide Enugu State with a comprehensive framework to mainstream climate action in all sectors of the economy. It was produced as guidelines to secure a sustainable climate resilient for economic growth.

    The manual is made up of simple yet effective ways of combating the impacts of climate-related hazards such as flooding, unpredictable rainfall, deforestation, carbon emissions, erosion, landslide and heat waves, which Enugu, as a state, is vulnerable to.

    The policy and action plan, which is being implemented in partnership with various stakeholders, including the Africa Climate Foundation (ACF) and the Society for Planet and Prosperity (SPP), is taking off with the government already powering some of the already completed Smart Schools with green energy, while planting of thousands of trees across the city is beginning in earnest.

    According to the state governor, Peter Mbah, tree planting is a formidable move to mitigate the effects of climate change.

    The governor, who spoke at the launch, said that soon, tree planting in every home would be one of the criteria for building plans approval, adding that the state government and the Enugu State House of Assembly would work together to enact a law that would outlaw cutting of trees in the metropolis without approval.

    While stating that climate change was no longer a distant threat, the governor, represented by his deputy, Ifeanyi Ossai warned that “it is here with us, reshaping our environment, disrupting livelihoods and challenging our collective aspirations for sustainable economic development.”

    He said the Enugu State Climate Policy and Action Plan, is a bold and forward-thinking framework that outlines the state government‘s vision and trajectory for a resilient, low-carbon and prosperous future.

    Mbah said the document represents a historic commitment by his administration to lead the way in climate action while fostering sustainable development, economic transformation and social inclusiveness.

    “Enugu State is endowed with an abundance of natural resources, rich biodiversity and a hard-working population determined to build a future of economic prosperity. However, like many regions across Nigeria and the world, we are increasingly vulnerable to the devastating effects of climate change. Rising temperatures, unpredictable rainfall, flooding, erosion and deforestation threaten our agricultural productivity, water security and overall quality of life left unaddressed,” he said.

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    These challenges, according to him, could undermine the state government’s development trajectory.

    “But we refuse to let that happen. We envision an Enugu State where economic growth and environmental stewardship go hand in hand,” he assured.

    Reflecting more on the climate policy and action plan, Mbah said: “Our Climate Policy and Action Plan is not merely a response to the challenges of climate change. It is a strategic blueprint for unlocking green investments, creating thousands of new jobs and positioning Enugu as a leader in Nigeria’s low-carbon transition.

    “This plan aligns with national and international climate goals, including Nigeria’s commitment to achieving net-zero emissions by 2060 and the global objectives outlined in the Paris Agreement.

    “This policy is grounded in science, equity and inclusive governance. It is Nigeria’s first sub-national climate policy, developed through rigorous quantitative modelling and extensive stakeholder consultations,” Mbah said.

    The governor said his administration had leveraged the perspectives of a diverse range of stakeholders, including the youth, business leaders, academia, civil society, and local farmers, to ensure the policy reflected the aspirations of all Enugu citizens. He noted that a critical component of the plan was ensuring that climate action contributes to economic expansion.

    “Our vision is to grow Enugu’s economy from $4.4 billion in 2023 to $30 billion by 2031. We will achieve this by harnessing the power of green industries, clean energy and sustainable agriculture. By investing in renewable energy, promoting climate-smart agriculture, expanding public transportation, and modernising our waste and water management systems, we will not only reduce carbon emissions but also stimulate job creation and enhance our state’s competitiveness in the 21st Century economy.

    “This is not a plan for tomorrow—it is a plan for today. The Enugu State government is already embedding climate-smart measures into our annual budgets, fostering public-private partnerships and establishing financing mechanisms such as green bonds and carbon market initiatives.

    “We are determined to ensure that our commitment to sustainability translates into real action and measurable impact.

    “Together, we can build an Enugu State that is not only resilient to climate change but also a beacon of sustainable development, innovation and shared prosperity,” he said.

    The governor commended experts, policymakers and stakeholders who contributed to the development of the policy and action plan, saying their commitment and hard work would shape the future of Enugu State for generations to come. He also extended his administration’s gratitude to the Africa Climate Foundation (ACF) and the Society for Planet and Prosperity (SPP) for their funding and technical assistance, respectively.

    The state Commissioner for Environment and Climate Change, Prof. Sam Ugwu said climate change has become a global challenge with its consequential impacts on livelihoods and ecosystems distorting national and sub-national socio-economic values and activities.

    The commissioner noted that climate change policy and action plans were essential in reducing and ameliorating the situation.

    “This initiative is more than a policy document; it is a commitment to our people and our future. It reflects the aspirations of our farmers, business owners, students, researchers and local communities who all contributed to its development. It aligns with Nigeria’s net-zero emissions target by 2060 and global climate agreements, ensuring that Enugu State remains at the forefront of climate governance and action.

    “Policy alone is not enough. Action is required at all levels. We must work together with government agencies, private sector partners, development organisations, civil society and every citizen to ensure the successful implementation of these frameworks. The success of this policy depends on our collective will to turn strategy into tangible impact,” Prof. Ugwu said.

    He commended Governor Mbah for showing interest in climate change by devoting a huge part of the Ministry of Environment to climate change.

    Presenting the overview of the Climate Change Policy, Action Plan and Climate Manual, the Special Adviser to the Governor on Climate Policy and Sustainable Development, Prof. Chukwumerije Okereke said the Climate Policy and Action plan integrated an energy and economic framework.

    The policy, he said, had become very imperative because climate change is causing a lot of economic havoc not only in Enugu but also around the world.

    Prof. Okereke revealed that Enugu State is already losing the water body, saying that the biggest impact will be on agriculture.

    According to him, climate-smart agriculture is one of the ways to mitigate the devastating effects of climate change.

    The Chief Field Officer of the United Nations Children’s Fund (UNICEF), Enugu, Mrs Juliet Chiluw, commended the Enugu State Government for its Smart Green School and launch of the climate action and policy.

    “One of our mandates is to ensure that all children attain rights in all circumstances and context.

    “So, UNICEF is a critical member of the table to ensure social protection of child rights in alliance with climate change,” she said.

    The Corporate Affairs Manager, East, of Nigeria Breweries Plc, Joy Egolum who spoke on behalf of the brewery manager, described the policy as a plan towards sustainability and ensuring that “we exist” which is what any business wants to do.

    “So, what we have done with the Enugu State Government is to show that we’re partnering with them in playing our part in ensuring that we’re able to brew with green energy and so, what we’ve shared today is how far we’ve gone and what we also intend to do going forward because it’s part of our sustainability agenda.”

    She listed some of the brewery’s programmes to reduce its carbon footprint in Enugu State, where it operates, saying, “We currently have about 20 per cent of our energy requirements through our 4mw solar farm.

    “We’re also investing in biomass instead of disposing of some of the byproducts of our brewery operations or processes; we will now use those to get energy through biomass. We currently use compressed natural gas. We’re not averse to reducing our carbon footprint.”

    Highlight of the event was the formal unveiling of the Enugu Climate Policy, Action Plan and Climate Education Manual by the governor.

  • Fresh reign of terror in Benue

    Fresh reign of terror in Benue

    • Herdsmen scare farmers away, feed their farm produce to cows

    • With our cassava, they feed their cows like parents do their babies – Victim

    Many farmers in Agatu area of Benue State are battling with trauma and depression following the unmitigated terror unleashed on their investments by marauding herders. A good number of the farmers have resorted to begging for food to keep their families alive, raising concerns about food security in the days ahead. Aside from the menace of the herders, findings revealed that they have become cash cows for depraved people fleecing them of their hard earned resources in the guise of processing loans for them. INNOCENT DURU reports.

    Sabo Afada, a farmer in Agatu area of Benue State, was host to some unsolicited visitors while working on his rice farm recently.

    The visitors identified by Sabo as herders were neither on the farm to buy produce nor to help in tilling the soil.

    “They came to vandalise the farm, and we could not stop them because they were fully armed. My family andand simply left the farm for them when they came to graze and destroy what we had planted.

    “We could not stand watching them destroy our farm.

    “I cried and felt very sadat the vandalisation of my farm by the herders. 

    “I was sot happy at all.”

    Sabo said he did not put up any resistance because “they will not spare you if you make any attempt to resist them.

    “If you mistakenly move close to them, they will cut you with machetes.

    “If you tell them not to graze on your farm, they will not mind killing you.”

    The embattled farmer said the destruction of his farm is nothing new in the area.

    His words: “They started destroying my farms four years ago and have continued this year.

    “This year, they have destroyed my yam, rice and beans, which is used to make okpa.

    “They have rendered me helpless.”

    Sabo said from being an independent man, the menace of herders has turned him into an irritating dependant.

    To survive, he said, “we often go to places where the herders have not invaded to work for other farm owners.

    “We do this to see if we can get one or two basins of cassava to eat at home.

    “We have new yam in our place at the moment but as a farmer with a large expanse of land, I don’t have a single tuber.

    “What we do is to go to people who have and beg them for some rations.

    “There is nobody to help us at the moment. We are helpless. 

    “I am ready to farm, but there is no financial assistance.”

    The command and control powers brazenly wielded by the herders have also left Abel Ogbaeba Odejo, a large scale farmer, confounded and devastated.

    Abel is sad that as a citizen peacefully going about his legitimate activities on his farm, the success or failure  of his investment is not dependent on his efforts but by the savage herders.

    Narrating his experience with the herders, Abel said: “They met me on the farm and I told them that we had not finished harvesting rice.

    “I demanded to know what they had come to do, and they said they came to pasture their cows. I said, this is not the time for that.

    “Before I knew it, another set of cows surfaced on the other side.

    “I have a large farm of rice. They destroyed my corn, rice and yam farms. Even one of the herders threatened to kill me.”

    Continuing, he said: “The day before yesterday (Sunday) when I went to the farm, my ‘ogbono’ tree had been cut down. They also destroyed the palm trees.

    “This afternoon (Tuesday), I went to the farm and saw them on my kolanut tree. They cut all the seeds on it.

    “When they saw me, they jumped down and started running.

    “They were with cutlasses so I could eot go after them.

     “My rice farm that they destroyed is more than three hectares.

    “My brother, it’s a terrible thing.”

    Following the losses he has recorded, Abel said he is left with nothing. “It is just corn flour that we have eaten today. I bought it from the market.This is something I used to make in my house.

    “Last year, I had about six bags. But early this year, I had one, and we have finished it.”

    Also reliving his experience, another farmer in Agatu, Agbochenu Paul, said he was working on his farm, “but when I saw the herders coming towards my farm, I had to leave the place for them.

    “They destroyed everything thereafter.

    “Only divine intervention saved my life when I saw the damage done to my farm. 

    “The situation was beyond my control. It was only God who saved me. I seriously shed tears.”

    Agbochenu regretted that the herders have been destroying “my farms for the past three years. I left where I was to another place and they still came and destroyed everything.

     “As I am talking to you, they have ravaged everything. I plan to start all over again.

    “Without farming, I am done for. I am not a secular worker. I am a perpetual farmer.”

    With no help in sight to protect them from the herders’ reign of terror, Agbochenu said

    “it is only God who can secure our farms for us. There is no alternative”.

    ‘Herders feed cows with our cascassa like parents feed children with noodles’

    One of the farmers who have suffered massive losses at the hands of the prowling herders is Peter Eigege, who said: “They destroyed my farms. They destroyed my guinea corn, rice and palm tree plantation. They destroyed everything.”

    Further reliving his ordeal, Eigege said: “Cassava is like noodles to the cows.  The herders cleared and gave everything to the cows to feast on.”

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    He regretted the monstrosity of the herders, which he said was getting worse by the day.

    Eigege said: “I was not the only person affected. It applied to many other farmers.

    “Unfortunately, the herders are still on the farm. Our people met with their leaders and they promised that they will leave in May.”

     With the deadline set by the herders to leave the farms, Peter said “anything we want to plant will be in June or July, and that will be late planting.

    “If we plant very late, it will not yield as much as when we plant early.

    “Early planting starts from April till May.”

    Unlike his peers who said they were on their farms when herders came to unleash terror, Eigege said: “I was not on the farm when they carried out the dastardly act. They did it in the night.

    “They dug out everything in the night, and when you get to the farm in the morning you will find out that your plants have been destroyed.

    “I had about three hectares of Guinea corn and everything was destroyed. 

    “I now buy guinea corn from the market.

    “I had about two hectares of yam, but I cannot boast of 100 tubers at the moment.

    “Before now, the least I would have was 1,000 tubers. They destroyed everything.

    “My wife used to get about six kg of 25 litres of palm oil from our plantation, but she couldn’t get up to one gallon this time around because the herders vandalised everything.

    “My wife now goes to the market to buy N100 worth of palm oil for us to cook.”

    Following the setback he has suffered, Eigege said: “We are living by the grace of God. 

    “Before, we used to eat three square meals. But that is impossible now.  We manage whatever we see in the morning and arrange a proper meal in the evening. 

    “We are on half, zero, one eating pattern now.

    “At times, I leave the little I have to eat in the morning for my children.”

    A frontline farmer and former district head in Agatu, Hon Bawa Haruna, said although the herders have not been killing farmers in Agatu in recent times, their activities have left many farmers psychologically paralysed.

    “They will see you, and will greet you. But as soon as you are not there on your farm, whatever you leave there is no longer your own. What you see this morning you can’t see tomorrow again.

    “They will use their machete to cut it down. 

    “When I went to my cashew farm yesterday (Monday), I shed tears because they vandalised everything.

    “My children could not lay their hands on one seed of cashew. The herders collected all of them.

     “The cashew that I planted almost 10 years ago is on two standard hectares. It is more than 1,000 stands.

    “When I saw the destruction, I just left because I don’t want to have hypertension.

    “I just shed tears and left because nothing compares to my life.”

     Before the incident on Monday, Haruna said he used to harvest a bag of cashew seed every day. “If my children should go and pick cashew, we could realise more than a bag of cashew nuts.

    “But since the beginning of the harvest season, I have only one paint rubber that is just only N2,000. And it is 30 of that rubber that makes up a whole bag.

    “I can’t actually give the correct figure of what I lost.”

     The herders, according to Haruna, “don’t have  a farm in my place, but they bring cashew nuts to sell to our people at home.

    “They have only cows, and when you touch their cows, the government will respond immediately. But if you report on cashew, yam or other farm produce being destroyed, no action is taken. And nobody will arrest the herders.”

    Continuing, he said: “I have no single yam in my large expanse of farm.

    “If you see me with a tuber of yam, I either bought it from the market or I stole it from somebody’s farm.

    “I don’t have a single seed of yam to be planted next season, now that the rain is about to start.

    “They ate up my yam farm. They destroyed everything.”

    Haruna said he used to have up to 3,000 heaps of yams. “I used to plant up to 3,000 seedlings. I don’t have even one tuber now.”

    Farmers lose money to loan applications

    Apart from the endless losses occasioned by the herders’ activities, a good number of the farmers in the agrarian community lamented how they were on many occasions cajoled to buy forms to get loans that never materialised.

    In their eagerness to get loans to improve their production, the unsuspecting farmers kept giving in to as many people as sold ideas of loans to them.

    Sharing his experience, Haruna said: “I applied several times. They would collect money and after assuring that everything was ready, they would not credit my account.

    “I travelled to Abuja more than seven times. I know how much I spent sleeping in hotels and attending workshops.

    “At the end of the day, there was no head way. This happened two years ago.

    “I did not apply last year and this year because they have been deceiving people.

    “The government is full of policy making but the implementation is not there.

    “They will say we are implementing this, we are doing this, we are forming policy on this and that for farmers, but at the end of the day, it is people that are farming in the air that will benefit from it.”

    Speaking in the same vein, Sabo said: “I have been applying for loans but I never got any. 

    “To apply for the loans, they often mandate us to obtain forms with N2,500.

    “After obtaining the forms, they would not give the loan.

    “We have the land to farm but there is no money to do this.

    “I am over 60 years.  We eat once a day on many occasions. But on some other occasions, we may have food to eat two times a day.”

    On his part, Agbochenu said: “I applied for a loan and they gave me an ID card. 

    “We paid money to get the forms, but I didn’t get any loan at the end of the day and no explanation was given.

    “I am willing to take out a loan to go back to the farm.”

    The story was the same for Eigege who said: “I applied for a loan but didn’t get it.

    “We were asked to obtain and fill forms but we didn’t get any loan. 

    “The people who came to ask us to apply for loans said they were representatives of the Central Bank of Nigeria.

    “If I can get a loan, I will be able to return to the farm. If I don’t get a loan, I will use manual labour.

    “With a loan, I can do mechanised farming.

    State government not helping matters, says former district head

    Heaping the blame of the vandals’ activities on the doorstep of the state government, Hon. Bawa Haruna said the government is no longer helping matters after it instructed that they should enter a peace accord with herders.

    “We all agreed because the lives that we are losing, we are not regaining them. It is life that matters to us.

    “If you have property and your life is not there, what is the value of that property to a dead body?

    “What is the value of whatever you have when you are not alive? So we better stay alive and lose all our belongings.

    “We believe that God will intervene one day even though the government is not doing the part it is supposed to do.”

    According to Haruna, the arrangement was that “we should all stay together because the herders are human beings and Nigerians too.

    “The herders were asked to bring their wives and their children to stay here. But where are these wives? Where are the children?

    “If they are not coming for violence, where are the children? They came only with their animals.

    “Publish exactly what I’m telling you. Don’t add and don’t remove.

    “Let any government come and apprehend me for the kind of suffering my people are going through.”

    In spite of the massive losses the farmers have recorded, Haruna says “nobody is giving them any benefit, nobody is giving them any incentive. Nobody is doing that.

    “Some plans will be done over there at the federal level, pronounced, everybody will hear, but it will not get to the right people that are affected. Quote me Bawa Haruna.”

    When he held sway as the district head, Haruna said, “I have been denied of my salary for about 82 months.

    “I have written several letters to the governor. I have written to the Bureau of Local Government and Chieftaincy Affairs.

    “Recently, they replaced me with another person. They have not sacked me.

    “They have not terminated my appointment as district head.”

    We are not aware of ugly development – Benue Govt

    Benue State government says its not aware of the plight of the farmers in Agatu.

    The Commissioner for Agriculture, Prof Moses Ogbaji in a terse response to our request via a text message said: “Sincerely I am not aware of this ugly development.”

  • Assessing benefits, hurdles in local solar panel manufacturing

    Assessing benefits, hurdles in local solar panel manufacturing

    The shift towards local manufacturing of solar panel is proving to be a game-changer in the industry. Importation costs, logistics challenges, and currency fluctuations have historically inflated the prices of solar panels, making them less accessible to the average consumer. However, the ongoing growth in local solar panel production, fuelled by increasing investments from LPV Technologies, is addressing these challenges by reducing foreign exchange dependency, lowering energy costs and creating jobs, ultimately benefiting the economy and supporting sustainable development, reports Assistant Editor, COLLINS NWEZE

    Energy is at the heart of development; it powers investments, fosters innovation and creates new industries that drive job creation, inclusive growth and shared prosperity. Among the various renewable energy sources, solar power stands out as a game changer. It has become an increasingly cost-competitive and reliable source of energy, especially in developing economies. As demand for renewable energy solutions continues to rise, Nigeria’s solar industry is primed for rapid expansion.

    However, the high cost of importing solar equipment—often accounting for up to 30 per cent of the total project cost—has long been a significant barrier to broader adoption. Recognising this challenge, LPV Technologies is leading the way in local manufacturing innovation. By offering competitive pricing, LPV significantly reduces capital expenditure (CAPEX) for solar developers and end-users. Through the use of local expertise and resources, LPV Technologies enhances cost efficiency without sacrificing quality, establishing itself as a key player in Nigeria’s renewable energy sector.

    Financing the energy transition

    The World Bank statistics showed that energy consumption accounts for more than three-quarters of greenhouse gas emissions. Accelerating the energy transition requires financing, and the massive deployment of renewable energy and energy efficiency while gradually retiring fossil fuels. However, in developing countries, constrained fiscal space and lack of access to finance make costly upfront investments in energy efficiency and renewable energy out of reach. In addition, macroeconomic and political uncertainties discourage investors. Multilateral development banks and donors play a critical role in scaling up support to countries with more affordable concessional financing to reduce the steep upfront costs of clean energy projects.

    The World Bank partners with governments to set policy direction, establish sound regulatory and macroeconomic frameworks, and strengthen institutions—including power utilities, the backbone of the electricity sector—that can help create a series of bankable projects. Private sector investment is crucial for achieving the sevenfold increase in investments needed in developing countries for energy access and transition—roughly $1-2 trillion by 2030—which also directly benefits job creation.

    Local manufacturing provides competitive advantage

    The shift towards local manufacturing is a game-changer in the solar panel industry. Importation costs, logistics challenges and currency fluctuations have historically inflated the prices of solar panels, making them less accessible to the average consumer. LPV Technologies is changing this narrative through its locally manufactured solar panels. By sourcing premium raw materials from globally recognized suppliers, the company guarantees top-tier quality and performance.

    This strategic approach not only reduces overall project costs but also minimizes supply chain disruptions. With faster turnaround times and reduced dependence on international suppliers, LPV Technologies ensures consistent solar panel viability, enabling solar project developers to meet tight deadlines. By producing locally, the company supports Nigeria’s vision for energy security and independence while maintaining high standards of quality and efficiency. According to energy expert Dr. Felix Duke, “Local manufacturing of solar panels significantly lowers the cost barrier to entry for many households and businesses in Nigeria. By reducing dependence on imports, companies like LPV Technologies create a more stable and resilient renewable energy sector.”

    Job creation, economic growth

    LPV Technologies’ commitment to local manufacturing extends beyond cost efficiency—it is also a powerful driver of economic growth. Nigeria’s unemployment rate is currently high, underscoring the need for sustainable job creation. By establishing local manufacturing facilities, LPV Technologies is generating both skilled and unskilled job opportunities across various functions, including manufacturing, quality control, logistics and maintenance of solar panels. This strategic investment in human capital not only addresses unemployment but also contributes to skill development within the renewable energy sector. By empowering the local workforce, LPV Technologies fosters economic growth and enhances the community’s capacity to support the nation’s renewable energy ambitions.

    Read Also: Minister urges Airbus on maintenance hub for Nigeria

    Renewable energy consultant, Amina Yusuf, highlights the broader impact: “Beyond direct employment, local solar manufacturing fosters the development of a supply chain that supports small and medium-sized enterprises (SMEs). This ecosystem growth is crucial for Nigeria’s long-term energy sustainability.”

    Renewable energy goals

    Nigeria is on a mission to diversify its energy mix, with a target of achieving 30 per cent renewable energy integration by 2030. This transition is critical for reducing the nation’s dependence on fossil fuels, which currently dominate the energy landscape and contribute to significant greenhouse gas emissions. LPV Technologies is playing a pivotal role in this energy transition by providing high-quality solar panels tailored to Nigeria’s unique environmental conditions.

    By offering locally manufactured solar solutions, LPV Technologies supports the government’s renewable energy targets while ensuring that clean, sustainable energy is accessible to all. This strategic alignment with national energy policies positions LPV Technologies as a key enabler of Nigeria’s journey toward a cleaner, greener future. Dr. Peter Okon, a renewable energy policy expert, asserts: “Companies that align their operations with Nigeria’s renewable energy targets are not only contributing to a more sustainable future but are also positioning themselves as indispensable partners in the nation’s energy transition. LPV Technologies is a prime example of such leadership.”

    Local content gains

    The Nigerian government has implemented several policies to promote local content, particularly in the renewable energy sector. These policies encourage local manufacturing to reduce import dependency and stimulate economic growth. LPV Technologies is strategically aligned with these regulatory frameworks, ensuring compliance while delivering cost-effective, locally manufactured solar panels.

    By supporting local content policies, LPV Technologies helps stakeholders meet regulatory requirements while enjoying the financial benefits of sourcing within Nigeria. This strategic positioning not only enhances brand reputation but also establishes the company as a trusted partner in Nigeria’s renewable energy landscape. Energy economist, Dr. Emmanuel Adeniran, notes: “With the right incentives and policies in place, Nigeria can become a leading hub for solar panel manufacturing in Africa. LPV Technologies is paving the way for this transformation by demonstrating the economic and environmental benefits of local production.”

    One of the major challenges in Nigeria’s solar industry is the delay in project timelines due to the complexities of importing equipment. Lengthy shipping durations, customs delays, and unpredictable supply chain disruptions often impact project execution. LPV Technologies’ local manufacturing line mitigates these challenges by enabling just-in-time delivery. This streamlined supply chain significantly reduces project completion times, ensuring faster deployment of solar solutions. By minimizing logistical complexities, LPV Technologies enhances operational efficiency, enabling developers to deliver projects on schedule and within budget.

    Solar project developer, Chinedu Obi, affirms: “Time is money in the solar industry. The ability to source high-quality solar panels locally without waiting months for shipments from overseas makes a tremendous difference in project execution and return on investment.”

    Beyond offering cost savings and economic benefits, local solar panel manufacturing plays a pivotal role in advancing environmental sustainability. Importing solar panels from abroad significantly contributes to carbon emissions, especially from transportation. By manufacturing solar panels domestically, LPV Technologies effectively reduces the environmental impact associated with long-distance shipping and reduces packaging waste.

    Moreover, solar energy is a key driver in Nigeria’s battle against climate change. Through the provision of affordable, high-quality solar panels, LPV Technologies is accelerating the country’s transition to renewable energy, reducing dependence on fossil fuels, and contributing to a lower carbon footprint. Environmental advocate, Bola Oladipo, states: “For Nigeria to meet its climate commitments, home-grown solar solutions must be prioritized. LPV Technologies’ local production model is an excellent example of how economic and environmental goals can align.”

    Future prospects and industry growth

    As Nigeria’s renewable energy sector continues to evolve, the role of local solar panel manufacturers will become increasingly vital. LPV Technologies’ innovative approach positions it at the forefront of this transformation, driving cost reductions, job creation, and sustainable energy solutions. Looking ahead, LPV Technologies aims to expand its production capacity, explore new technological advancements, and enhance research and development efforts. By continuously innovating and adapting to market needs, the company is set to maintain its competitive advantage and reinforce its position as a leader in Nigeria’s solar panel industry.

    As Nigeria accelerates its journey towards a greener future, LPV Technologies remains a key player, driving growth, innovation, and impact in the renewable energy sector. With strong government support, increasing demand, and an unwavering commitment to quality, LPV Technologies is not just manufacturing solar panels—it is pioneering a brighter, more sustainable future for Nigeria.

    Nigeria has over the years developed several policies and frameworks in a bid to improve energy access and bridge the energy gap through renewable energy sources. The implementation of key policies has supported local manufacturing of solar panel, a key component in solar energy architecture. The transition towards more sustainable energy sources, has ensured that solar energy remains a key player in this shift, benefiting the environment and local industries. This transition is critical for reducing the nation’s dependence on fossil fuels, which currently dominate the energy landscape and contribute to significant greenhouse gas emissions.

    Experts said that solar energy can lead to significant savings on energy costs for both residential and commercial consumers. By generating their own electricity, homeowners and businesses can reduce their reliance on the grid and lower their utility bills. This financial relief allows consumers to reallocate their savings towards other needs, potentially boosting local spending and stimulating economic growth. For businesses, the cost savings from solar energy can be substantial, improving their bottom line and allowing for reinvestment in other areas. By reducing operational costs, solar energy helps these businesses remain competitive and financially viable, which in turn supports local economies by maintaining jobs and encouraging business expansion.

    According to the World Bank Group, solar energy provides clean, affordable and reliable electricity access in developing countries while reducing dependence on fossil-based energy systems. The bank explained that energy is the lifeline for a modern economy and is critical for the necessities of human life—education, healthcare, food, and jobs, on a livable planet. Expanding energy access and meeting climate goals must be done simultaneously by scaling up energy efficiency and renewable energy investments that allow the phase-down of fossil fuels.

    Yet nearly 700 million people still live without electricity worldwide, and about 2.3 billion people rely on polluting traditional fuels and technologies to cook their meals. Scaling up renewables and energy efficiency, investing in electrification at scale, and improving power utilities while avoiding new coal plant construction and retiring old plants are critical to providing clean energy to power homes, schools, hospitals, and businesses.   Overall, renewable energy can help countries mitigate climate change, build resilience to volatile prices, and lower energy costs.

  • Transforming Africa’s public service through leadership training

    Transforming Africa’s public service through leadership training

    The AIG Public Leaders Programme, launched by the AIG-Imoukhuede Foundation, is revolutionising Africa’s public sector by equipping leaders with the essential skills to drive transformational change. Through a combination of world-class leadership training and innovative strategies, the programme empowers public servants to address complex governance challenges. By strengthening leadership capacity across Africa, it aims to foster efficient, accountable, and citizen-centric public service, ultimately contributing to sustainable development and economic growth, JULIANA AGBO writes.

    The public sector remains a cornerstone of governance and administration, playing a vital role in a nation’s economic and social development. A well-functioning public sector significantly enhances citizens’ quality of life, with research consistently highlighting the strong correlation between public sector performance and economic growth.

    However, genuine transformation in the public sector demands the collaborative efforts of citizens, civil society organizations, and the private sector. In response to this need, the AIG-Imoukhuede Foundation, through its Public Leadership Programme (PLP), has led initiatives to improve public service delivery and expand access to quality primary healthcare across Africa, starting with Nigeria. The AIG Public Leaders Programme, developed in partnership with the University of Oxford’s Blavatnik School of Government, provides emerging African public sector leaders with a distinctive opportunity to enhance their leadership skills and capacity for driving impactful change.

    The AIG Public Leadership Programme is an executive capacity-building initiative tailored specifically for public servants across Africa. Designed for senior leaders and those advancing into higher roles, the programme equips participants with the critical skills necessary to navigate and lead in today’s rapidly evolving and complex world. By strengthening their leadership capabilities, the programme empowers these leaders to drive positive, transformational change within their institutions and beyond.

    Featuring a dynamic blend of online and in-person classes, the curriculum fosters engagement through discussions, simulations, and hands-on exercises. It is crafted to enhance leadership abilities while instilling a culture of excellence, effectiveness, and integrity within public institutions. Led by renowned global experts in public policy, the programme offers a transformative learning experience that is reshaping the narrative of public sector reform. Its long-term goal is to empower Nigerian public servants to reclaim their leadership position on the continent, echoing the era of the 1960s and 1970s when Nigeria’s public service was internationally revered for its excellence. Over the past four years, the programme has trained nearly 300 public servants, equipping them with world-class leadership skills and innovative strategies to tackle governance challenges both in Nigeria and across the continent.

    Programme impact and reach

    Former Vice President of Nigeria, Professor Yemi Osinbajo, emphasised that the AIG Public Leaders Programme has evolved into much more than a contribution to the development of Nigeria and Africa’s public service. Osinbajo, who delivered the keynote address at the closing ceremony for the programme’s fourth cohort, highlighted the critical role of public service in national development.

    He described the programme as a transformative initiative for building capacity within the civil service, not only locally but across the entire continent. Reflecting on the impact of public service on nation-building, Osinbajo noted that when public services are delivered by well-trained, well-resourced, and motivated professionals, economies flourish, businesses expand, jobs are created, and lives are improved.

    Explaining further, he stated that when the public service is weak, disorganized, or driven by self-interest, progress is hindered, opportunities are squandered, and the economy suffers as a result. He said: “Clearly when public systems fail, everyone suffers. But when the public service sees itself as a public resource to solve problems, the possibilities for transformational change are limitless.

    “Consider again, the daily challenges entrepreneurs face when trying to register companies, secure certifications, or obtain necessary approvals. Every time we delay their progress, telling them to come back next week instead of resolving issues today, we are not just postponing one person’s prosperity. We are postponing opportunities for many others whose livelihoods depend on that business succeeding. In short, when a public officer becomes an obstacle, they directly undermine national prosperity.”

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    Speaking on the need for effective policy, Osinbajo emphasised that policymaking must be adaptive, responding to evolving realities. He stressed that regulatory frameworks must continuously evolve to address new developments, unlocking opportunities while safeguarding the public interest. “An effective public service today must also see the private sector as crucial partners. The public service exists to facilitate enterprise and support the private sector. This fact is the fundamental of a dynamic and productive relationship between the public and private sectors in our nations. The AIG Public Leaders Programme empowers participants to imagine new possibilities, test bold ideas, and design practical solutions,” Osinbajo said.

    He highlighted that many programme participants had already implemented reform projects with far-reaching impacts, such as leveraging mobile technology to expand mental health services and developing AI-powered knowledge management tools. Osinbajo likened these public servants to “public service scientists”—innovators who, much like technology scientists, create groundbreaking systems and processes to ensure that healthcare, safety, education, and economic opportunities are accessible to every citizen, not as a privilege, but as a fundamental guarantee.

    “The prosperity of our nations depends on the diligence, integrity and vision of our public servants. With programmes like this nurturing such talent, the future of public service in Africa is bright. I am convinced that after these past six months of rigorous learning, your approach to public service will never be the same,” he added, urging graduates to embrace a mindset of problem-solving, creativity, and transformative leadership.

    Founder of the AIG-Imoukhuede Foundation, Aigboje Aig-Imoukhuede (CFR), emphasised the programme’s broader vision of empowering a special breed of public servants capable of driving meaningful change. He explained that the AIG Public Leaders Programme is not just a Nigerian initiative; it has extended its impact across Africa, bringing together participants from eight countries since its inception. Designed for senior public officials, the programme provides advanced training on governance, integrity, and technology-driven solutions to the challenges of public administration. Aig-Imoukhuede stated, “Our challenge is not just about doing things faster; it’s about catching up. Catching up requires not just intelligence, but the courage to do things differently.”

    This call to action resonated deeply with the 68 cohort members, who have spent months refining leadership strategies that prioritise accountability, innovation, and citizen-centric governance. Their journey through the programme has equipped them with the skills needed to navigate complex public sector challenges while driving meaningful reform.

    Prof Emily Jones of the Blavatnik School of Government at the University of Oxford highlighted five core themes central to the programme, underscoring their pivotal role in shaping effective governance. “The first, ‘Integrity in Public Life,’ reflects the importance of ethical leadership as the foundation of effective governance,” Jones explained. She emphasised that public servants must consistently act in the best interests of citizens to foster trust and accountability. Acknowledging the rapid technological transformation reshaping public administration, she also noted that the programme underscores the necessity for leaders to be skilled in integrating AI, big data, and digital tools to enhance service delivery.

    Another key theme, she said, is ‘Institutional Leadership and Performance Reform,’ which recognises that improving public institutions is a continuous process requiring visionary leadership and strategic planning. Jones further highlighted the programme’s emphasis on ‘Negotiating in the Public’s Interest,’ noting that public officials often engage in negotiations related to policies, budgets, and international agreements. Mastering these negotiation skills is essential for securing the best possible outcomes for citizens.

    The final theme, ‘Governing in Times of Challenge and Change,’ she explained, calls for adaptive leadership in response to global disruptions such as climate change, economic shifts, and technological advancements. Leaders must be both proactive and resilient to navigate these complexities. She also praised the reform projects completed by the cohort, citing examples of real-world impact, including one public servant who used her project to reduce hospital patient waiting times by half—an initiative now being rolled out across her state. “The stories of impact emerging from this programme are proof that real change is possible,” she said. “Each of you has the power to deliver meaningful transformation in your institutions and communities.”

    President of the AIG-Imoukhuede Alumni Association, Mr. Idowu Bakare, highlighted the growing network of public sector leaders who have graduated from the Foundation’s capacity-building programmes and are dedicated to strengthening public service delivery across Africa. He reaffirmed the Association’s commitment to supporting new graduates. With a mission to serve as a hub for collaboration, innovation, and the implementation of alumni-driven projects, Idowu asserted that the collective action of the association would amplify the programme’s long-lasting impact.

    Transformational change in the public sector

    Corroborating the former vice president, the Head of Civil Service of the Federation, Mrs. Esther Didi Walson-Jack, underscored the critical role of leadership development in driving public service reforms across the continent. She emphasised that by equipping leaders with the necessary tools to improve service efficiency, the Foundation is at the forefront of driving meaningful transformations that have a positive impact on the economy. Walson-Jack commended the programme for aligning with Nigeria’s civil service reform efforts, noting that many alumni are actively contributing to key national reform projects. She also highlighted that the collaboration between the public sector, academia, and philanthropic organizations marks a new era in African governance—one rooted in competence, innovation, and a steadfast commitment to the public good.

    “As Africa navigates the complexities of the 21st-century global economy, the importance of a strong, ethical, and future-ready public sector cannot be overstated. The AIG Public Leaders Programme is proving that with the right training and mindset, public servants can drive transformational change and elevate governance standards,” she said.

    The Executive Vice Chairman of the Foundation, Mrs. Ofovwe Aig-Imoukhuede, emphasised the programme’s significant impact, stating that graduates are now equipped with the skills and insights necessary to excel in their roles within the public service. On the issue of effective leadership, she highlighted that the programme addresses the urgent need for strong leadership in the African public sector. By fostering sustainable development and good governance, the programme ensures participants are prepared to tackle contemporary challenges. She also noted that these graduates are not only applying their knowledge effectively but are actively sharing their expertise within their organisations and the broader public sector, thereby enhancing overall leadership capacity.

    “Our mission is to improve the lives of Africans by transforming public service delivery and expanding access to efficient service delivery. We are committed to driving meaningful change, and we are proud of the impact our programme participants are making. By applying what they have learned, they are fostering positive transformation within their organizations.

    “The AIG Public Leaders Programme continues to set a high standard for leadership training, shaping a new generation of public servants who are poised to drive significant policy and governance reforms across Africa,” Aig-Imoukhuede stated.

  • FX market, naira, foreign reserves firm up on CBN policies

    FX market, naira, foreign reserves firm up on CBN policies

    The naira and Nigeria’s foreign reserves saw significant gains last week, as the Central Bank of Nigeria (CBN)’s policy measures continued to positively influence the forex markets. In addition to maintaining exchange rate stability, the CBN has ramped up interventions, increasing FX supply to retail end-users, reducing market distortions, and ensuring effective foreign reserves management. These liquidity injections, along with improved compliance with FX regulations, have not only stabilised the naira in both official and parallel markets but have also sparked renewed interest from foreign investors in Nigeria’s economy, reports Assistant Business Editor, COLLINS NWEZE

    The continued stability in Nigeria’s foreign exchange (forex) market has had a significant impact on both businesses and the broader economy. The Central Bank of Nigeria’s (CBN) timely interventions—through strategic policy measures and liquidity injections—have effectively curbed the naira’s depreciation, restoring stability to the forex market. As part of its commitment to maintaining exchange rate stability, the CBN recently injected $360 million through authorised dealers into the market. This move has helped to mitigate the risk of a sharper devaluation amid growing demand pressures.

    The official FX rate stands at N1,530/$, while the naira trades at N1,580/$ on the parallel market. The Central Bank of Nigeria’s (CBN) robust interventions, including last week’s sale of $360 million to authorised dealers, continue to play a key role in stabilising the naira. Naira stability is further supported by inflows from Foreign Portfolio Investors (FPIs), significant contributions from International Oil Companies (IOCs), and the CBN’s previous $18.4 million interventions into the market. Additionally, there is renewed interest from FPIs in the FX market, driven by improved market confidence, a more efficient forex framework, and stronger macroeconomic conditions.

    Analysts at Cordros Research reported that Nigeria’s gross FX reserves increased by $12.06 million week-on-week, reaching a total of $38.36 billion. This marks a reversal after nine consecutive weeks of decline. “Concerns about oil receipts underpinned by lower oil prices are likely to temper net FX inflows from Foreign Portfolio Investors, likely sustaining pressure on the naira. Nonetheless, CBN’s sustained market intervention and reduced market distortions are expected to prevent a sharp depreciation of the naira,” the report said.

    Philip Sigwart, Group CEO of Baobab Group, stated that the Nigeria forex market has turned a corner, with the restored stability now creating a favorable environment for more companies to invest in the economy. He revealed that, due to the improved business confidence and stability in the forex market, his company plans not only to inject new capital into its operations but also to increase lending to businesses. Sigwart, speaking from Baobab Group’s headquarters in Paris during a media briefing in Lagos, emphasised that the volatility in the forex market, which previously made planning and investment challenging for businesses, has been effectively addressed. He noted that now is the right time to invest and expand Baobab Group’s operations in Nigeria, with plans to grow to at least 100 branches and target a N1 trillion balance sheet.

    CBN’s views

    CBN Governor, Olayemi Cardoso, explained that the Central Bank faced a significant backlog of over $7 billion in unfulfilled foreign exchange commitments, compounded by a fragmented FX regime with multiple exchange rates. This system created opportunities for arbitrage, which hindered much-needed foreign investment and contributed to the depletion of external reserves, which had fallen to $33.22 billion in December 2023.

    To address these challenges, the CBN implemented critical reforms to unify Nigeria’s exchange rate, eliminating market distortions and restoring transparency. According to Cardoso, the FX unification has enabled the apex bank to clear the outstanding $7 billion in foreign exchange obligations, boosting business confidence across various sectors—from manufacturing to airlines—by providing the certainty needed for long-term planning and investment.

    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. Governor Cardoso explained, “The introduction of the electronic matching system will correct market distortions by enhancing the price discovery process. Additionally, it will significantly boost the Central Bank’s oversight and intervention capabilities, ensuring a more stable and transparent foreign exchange market.”

    Cardoso emphasised that while the Central Bank will continue to lay the foundation for price stability and create a conducive policy environment, the role of banks in this process is crucial. He stressed that the collaboration between the CBN and financial institutions will be key to ensuring sustained stability and fostering growth in the foreign exchange market. “An FX market defined solely by when and how the Central Bank buys or sells dollars is inadequate for the needs of a dynamic economy like Nigeria’s. Now is the time for banks to step up to their intermediation and market-making responsibilities, providing customers with the right solutions to run their businesses and manage risks effectively,” he said.

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    Many stakeholders have praised the CBN’s reforms, which have not only stabilised the exchange rate but also attracted a new wave of investment into the economy. Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), credited the ongoing stability of the naira against the dollar and other global currencies to the CBN’s policies. Gwadabe highlighted key policies such as the Foreign Exchange (FX) Code, increased investor confidence and foreign direct investment-supporting initiatives, all of which are effectively curbing the activities of FX speculators.

    Gwadabe explained that the implementation of the FX Code is comprehensively addressing various aspects of market conduct and practices. For example, the policy authorises the CBN to establish and enforce directives that set the standards for financial institutions regarding how FX transactions should be conducted. He emphasised that the FX Code further promotes transparency and accountability in the market, helping to sustain the stability and rally of the naira over time. Gwadabe also expressed his support for the CBN’s position, stating that all institutions engaged in the foreign exchange market must submit a detailed implementation plan to the CBN, outlining how they will fully comply with the FX Code.

    These plans are expected to be formally approved and signed by the institution’s board of directors. Additionally, the plans must be accompanied by relevant extracts from the board meeting where the plan was reviewed and endorsed, ensuring full transparency and accountability in the implementation process.

    CENTRAL BANK NIGERIA

    CEO, Countryside Markets Limited, Stevens Michael, said: “For me, the whole idea is just to ensure that there is a lot more sanity in the foreign exchange market because certain characters have really created a whole lot of problems over the years in the foreign exchange market. I think that is what the CBN is trying to do and the more we’re able to sanitise the markets, I think the more stability it will achieve in the foreign exchange market,” he said.

    At the launch of the Nigeria Foreign Exchange Code (FX Code), Cardoso emphasised that integrity, fairness, transparency and efficiency are critical pillars for driving Nigeria’s economic growth and stability. He outlined that the FX Code is built on six core principles: ethics, governance, execution, information sharing, risk management and compliance, and confirmation and settlement processes. Cardoso explained that these principles align with international standards while also addressing the unique challenges faced 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.”

    Commercial banks are key stakeholders in the implementation of the FX Code. Analysts have therefore urged the CBN to establish robust compliance checks to ensure that banks—historically one of the weakest links in FX policy implementation—adhere to the new policy measures. While the CBN has secured the support and commitment of these banks, routine regulatory checks will be essential to sustain the positive market outcomes from the initiative.

    The formal signing by participating banks symbolises a unified effort to promote transparency and trust. However, it is crucial for the apex bank to take steps that ensure the banks not only make commitments but also match their words with tangible actions.

    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 grant the CBN the power to establish and enforce directives regarding the standards that 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 adhere to in their operations. As part of the compliance requirements, market participants must conduct a self-assessment of their adherence to the FX Code and submit a report detailing their level of compliance to the CBN by January 31, 2025.

    Following this, all institutions engaged in the foreign exchange market must provide the CBN with a detailed implementation plan outlining how they intend to achieve full compliance with the FX Code. This plan must be formally approved and signed by the institution’s board of directors and accompanied by relevant extracts from the board meeting where the plan was reviewed and endorsed. In addition to the FX Code, the apex bank also introduced the Electronic Foreign Exchange Matching System (EFEMS), a system that has proven effective in other economies in enhancing the functionality of the foreign exchange market. The introduction of EFEMS aims to streamline FX transactions, improve transparency and facilitate better price discovery, contributing to a more efficient and stable market.

    The EFEMS was introduced to address forex market distortions, eliminate speculative activities, and instill transparency. Commonplace in both  developed and developing markets, the EFEMS provides real-time information on currency rates, trading volumes, and market activity, thereby promoting a more efficient and transparent market environment. In line with this initiative, the CBN recently issued a directive requiring all banks operating in the interbank FX market to adopt the Bloomberg BMatch system for trading. The platform, which became operational on December 2, 2024, is designed to enhance transparency and operational efficiency, further supporting the stabilization and development of Nigeria’s FX market.

    The CBN also issued comprehensive guidelines for the operations of the interbank foreign exchange (FX) trading system via EFEMS, setting the minimum tradable amount at $100,000, with incremental clip sizes of $50,000. This structure aims to promote transparency and efficiency in the FX market. According to the CBN, the EFEMS initiative is designed to ensure “transparent, fair and efficient FX trading, minimise counterparty risks, and enforce compliance with CBN regulations,” thereby enhancing the stability and integrity of Nigeria’s foreign exchange market.

    Between December 2, when the new electronic trading platform commenced, and December 10, 2024, the naira gained N147.69 against the dollar in the official market. The naira also appreciated substantially at the parallel market during this period, reflecting the positive impact of the new trading platform on the FX market.

    CBN’s policies support remittances inflows

    As part of its efforts to boost diaspora remittances and support naira stability, the CBN recently introduced two new financial products aimed at serving 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. These products are designed to facilitate easier financial transactions, promote savings, and strengthen economic ties between Nigeria and its global diaspora community. 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 continued to have the opportunity to open any of the Non-Resident Nigerian accounts. The Non-Resident Nigerian Ordinary Account is specifically designed to facilitate remittances by enabling non-resident Nigerians to send foreign earnings into Nigeria and manage funds in either foreign currency or naira. This account supports deposits from various sources, such as salaries, allowances, and dividends, while also allowing spending on family maintenance, education and healthcare, thus promoting financial inclusion and supporting the needs of NRNs.

    On the other hand, the Non-Resident Nigerian Investment Account offers NRNs an opportunity to invest in Nigeria’s financial markets, including foreign currency-denominated bonds, fixed deposits, and local assets such as equities, government securities, and mortgage products. The CBN explained that both accounts provide currency flexibility, allowing holders to maintain balances in either foreign currency or naira. Account holders will also have the ability to convert funds between the two currencies at prevailing exchange rates through authorized dealers, further enhancing the accessibility and functionality of these accounts for Nigerians abroad.

    The Non-Resident Nigerian Investment Account was designed 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 stated that the introduction of these accounts will help harness the economic potential of Nigerians in the diaspora by boosting remittances and fostering investments in critical sectors, thereby supporting national growth and stability. Through these accounts, the CBN aims to deepen financial inclusion and strengthen the ties between Nigeria and its global diaspora community.

    These measures, along with granting licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and enabling timely access to naira liquidity for IMTOs, are designed to further enhance the efficiency and transparency of Nigeria’s remittance inflows. Diaspora remittances are a vital source of foreign exchange for Nigeria, complementing both foreign direct investment and portfolio investments.

    The CBN’s initiatives have driven continued growth in these inflows, aligning with its goal of doubling formal remittance receipts within a year. As a result, remittances in the economy are expected to increase, fuelled by the CBN’s ongoing efforts to bolster public confidence in the foreign exchange market, strengthen a robust and inclusive banking system, and promote price stability—critical factors for sustained economic growth.

    In a report titled “Diaspora Remittances: The Power Behind Africa’s Sustainable Growth,” Mohamed Touhami el Ouazzani, Regional Vice President of Africa at Western Union, emphasised that while remittances can be measured by the movement of money, their true impact is seen in the lives they change. He highlighted 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. This underscores the crucial role of remittances in driving economic development and improving the livelihoods of millions across the continent.

    He added that remittances symbolise deep ties that keep communities connected across borders. “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 begins with understanding and meeting people’s aspirations. Ensuring that individuals who strive for more can send and receive funds, regardless of their financial status, is crucial. It’s essential to cater to diverse needs, providing accessible, reliable, and affordable financial services to empower people and help them achieve their goals. By doing so, remittances can play a key role in fostering economic inclusion and supporting sustainable development across communities.

    “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 deliberate investment in a future where borders blur. Each transfer represents more than just money; it is a step toward greater global connectivity and a catalyst for positive transformation in the lives of individuals, families, and entire communities. By fostering these connections, remittances help bridge gaps and create opportunities, contributing to long-term growth and prosperity.

    “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.

    Understanding diaspora remittances

    Globally, Nigeria is among the leading countries that attract funds from migrant workers, alongside other nations such as Pakistan, Canada, the USA, Australia, and Vietnam. Nigeria stands out as one of the countries with a large number of migrant workers worldwide, who send remittances back home. These funds, estimated at $23 billion annually, serve as a reliable source of foreign exchange for the domestic economy. Diaspora remittances play a crucial role in supporting the country’s foreign currency reserves, contributing to economic stability, and improving the livelihoods of millions of Nigerians.

    Such remittances remain a cheap source of funding because they do not need to be repaid with interest. Instead, they go directly into improving lives by contributing to the construction of houses, payment of school fees, healthcare, and other essentials, all of which add significant value to the economy. Diaspora remittances represent household income from foreign economies, arising mainly from the temporary or permanent movement of people to those economies. These remittances can be both cash and non-cash items that flow through formal channels, such as electronic wire transfers, or informal channels, like money or goods carried across borders. They play an essential role in supporting the livelihoods of families, boosting local economies, and providing a reliable stream of foreign exchange for the receiving country.

    Meanwhile, recent data from the International Monetary Fund (IMF) under its Currency Composition of Official Foreign Exchange Reserves (COFER) points to the rise of nontraditional reserve currencies, including the Australian dollar, Canadian dollar, Chinese renminbi, South Korean won, Singaporean dollar, and Nordic currencies. Stakeholders have agreed that the measures instituted by the CBN under Governor Cardoso have not only lifted the forex market and entrenched long-lasting stability but have also laid the foundation for sustainable economic growth. These reforms are seen as crucial steps in strengthening Nigeria’s economic resilience and ensuring a more balanced and diverse foreign exchange environment.

  • Assessing financial sector’s input to $1 trillion economy target

    Assessing financial sector’s input to $1 trillion economy target

    The World Bank recently reaffirmed Nigeria’s position as the largest economy in Africa by Gross Domestic Product (GDP). Not content with this achievement, the Federal Government has set an ambitious target of growing the economy to $1 trillion by 2030. While many stakeholders view this goal as audacious, they agree it is achievable. To realise this vision, substantial efforts will be required, including the Central Bank of Nigeria (CBN)-led bank recapitalisation, foreign exchange reforms, and a continued fight against inflation, writes Assistant Editor Collins Nweze

    A well-capitalised banking sector is undeniably crucial for the growth of the domestic economy. This is why nearly two years ago, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso urged banks to prepare for a new round of recapitalisation to ensure they have the necessary capital to support the Federal Government’s $1 trillion GDP  target. Cardoso reiterated that President Bola Ahmed Tinubu’s economic plan aims to reach a $1 trillion GDP by 2030, emphasising that the current bank capitalisation is insufficient to support such a large economic scale.

    The CBN boss asked: “Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1.0 trillion economy in the near future? In my opinion, the answer is “No!” unless we take action. Therefore, we must make difficult decisions regarding capital adequacy. As a first step, we will be directing banks to increase their capital.”

    Continuing, he said: “The administration, as outlined in the widely circulated Policy Advisory Council report on the national economy, had set an ambitious goal of achieving a Gross Domestic Product (GDP) of $1.0 trillion, with clearly defined priority areas and strategies.” According to him, attaining this substantial target necessitates sustainable and inclusive economic growth at a significantly higher pace than current levels. “The administration has already commenced this journey through fiscal reforms, including the removal of petrol subsidy and the unification of the foreign exchange market rate,” he added.

    Today, many banks have successfully recapitalised, while others are exploring mergers and acquisitions to strengthen their capital bases. The CBN Governor stated that these moves align with the central bank’s efforts to enhance financial inclusion and support economic growth. To further these objectives, the CBN has introduced new minimum capital requirements for banks. He said: “This strategic move ensures that banks are well-capitalised, enabling them to take on greater risks, particularly in underserved markets. With stronger capital bases, banks can provide more loans and financial products to Micro Small and Medium Enterprises (MSMEs), rural communities, and other vulnerable segments that have previously struggled to access formal financial services.”

    The World Bank recently identified four key sectors where strategic reforms could drive significant investment and job creation. In the Information and Communication Technology (ICT) sector, reforms could unlock up to $4 billion in investments, creating over 200,000 jobs. In agribusiness, potential investments of $6 billion could generate more than 275,000 jobs. The solar photovoltaic (PV) industry presents an opportunity for $8.5 billion in investments, potentially creating over 129,000 jobs. Meanwhile, the pharmaceutical sector could attract $1.6 billion in investments, leading to the creation of 30,000 to 40,000 jobs.

    Sustaining bank recapitalisation

    On March, 28, last year, CBN unveiled a two-year bank recapitalisation exercise which commenced on April 1, 2024, and is expected to end on March 31, 2026. The recapitalisation plan requires minimum capital of N500 billion, N200 billion, and N50 billion for Commercial Banks with International, National, and Regional licenses, respectively. Cardoso said the recapitalisation policy not only strengthens financial stability but also serves as a catalyst for inclusive growth. “By enabling banks to extend more credit to MSMEs, we enhance job creation and productivity. Furthermore, with increased capital, banks can invest in technology and innovation, crucial for driving digital financial services such as mobile money and agent banking. These technologies are key to breaking down geographic and economic barriers, bringing financial services to even the most remote areas,” he stated.

    The CBN is the final signatory in a tripartite capital verification committee that included the Securities and Exchange Commission (SEC) and Nigeria Deposit Insurance Corporation (NDIC). Under the guidelines for the recapitalisation, capital verification is a major requirement before the clearance of the allotment proposal and release of the funds to the bank for onward completion of the offer process and addition of the new capital to its capital base.

    Experts had estimated that banks could raise about N5 trillion within the two-year recapitalisation period. About one year to recapitalisation deadline, banks have stepped up preliminary consultations on the prospect of business combinations.  Analysts said there have been “more talks around mergers and acquisitions” as banks consider alternative options to fresh capital raising.

    The CBN had approved the first mergers and acquisition deal between Providus Bank and Unity Bank in 2024. Access Holdings Plc, Ecobank Nigeria and Jaiz Bank Plc have met the new minimum capital requirements. Afrinvest banking sector report on bank’s recapitalisation explained that the CBN had, in its March 2024 capital requirement guideline, announced a new capital structure for banks under different licenses to strengthen the financial system and aid the government’s target of a $1 trillion economy by 2032.

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    The recapitalisation exercise was also triggered by the clear erosion of banks’ capital buffer post-2010 from a real and FX perspective compared to 2010 levels. “Using the 2023 average, the existing minimum capital size has lost 77.1 per cent and 76.5 per cent in FX and real terms, respectively. To shore up the capital gap, the CBN considered the impact of macroeconomic headwinds on banks’ risk profiles and financial position in defining the new threshold,” the report said.

    Stakeholders speak

    The Chairman of Parthian Group, Adedotun Sulaiman, emphasised the essential role of investments in economic development, stating, “capital is the oxygen of the economy, and without capital, we can’t go very far.” Speaking during the launch of the company’s two investment funds in Lagos, he said the products are its own modest contribution, in mobilising the capital needed to achieve the President’s audacious goal of creating a $1 trillion economy. He said: “I will say we have huge capital deficit in Nigeria, and other developing countries. We need enough capital to build infrastructure, and support economic growth. So, what we are doing is set up these products, mobilise the capital from small savers, individuals, and corporate and then deploy the capital to people that need it can use the funds to build roads, schools, healthcare among others,” he said.

    Sulaiman added: “So, that is what we are doing; it is our modest contribution to grow the Nigerian economy. The $1 trillion economy target is ambitious, audacious. The thing about life is that one should challenge oneself. Is it possible? Yes, it is possible but requires a lot of hard work and resources. And can we rise to the occasion as a country? Yes, I think so.”

    Other analysts said the government’s goal of achieving a $1 economy would require the institutionalisation of corporate governance in Nigeria’s public sector to foster transformation within the sector. They urged Nigeria to adopt good governance practices to align better with international business standards. She also called for a legal framework to support this institutionalization and structures to drive national transformation.

    Remittances deepen FX inflows

    Already, remittances through International Money Transfer Operators (IMTOs) rose 79.4 per cent to US$4.18 billion in the first three quarters of 2024, demonstrating the positive impact of FX reforms. Additionally, the CBN lifted the 2015 restriction barring 41 items from accessing FX at the official market to enhance trade and investment. These reforms and developments reflect the bank’s commitment to creating an enabling environment for inclusive economic development. However, achieving macroeconomic stability requires sustained vigilance and a proactive monetary policy stance. “As we shift from unorthodox to orthodox monetary policy, the CBN remains committed to restoring confidence, strengthening policy credibility, and staying focused on its core mandate of price stability,” Cardoso reaffirmed.

    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. Analysts insist that these measures under Cardoso have not only lifted the forex market and entrenched long-lasting stability but laid foundation for sustainable economic growth.

    Very significantly, the resilience of the domestic economy, bolstered by a strong financial system with robust soundness indicators, instils confidence in the economic structure. Major prudential ratios, such as capital adequacy, liquidity, and Non-Performing Loans ratios, were within prudential limits, reflecting proactive regulatory oversight and strong industry risk management practices. Significant credit was extended to growth-enhancing sectors such as agriculture, manufacturing and general commerce, as well as individuals and households.

    The credit played a crucial role in stimulating economic activities and supporting output performance, emphasising the role of financial institutions and sound regulation led by the Central Bank of Nigeria. Besides, the CBN has also taken strategic steps to tackle inflation. The apex bank recently hosted the Monetary Policy Forum 2025, featuring fiscal authorities, legislative, private sector, development partners, subject-matter experts, and scholars with the theme: “Managing the Disinflation Process.” Cardoso explained that the apex bank’s focus is to sustain price stability, the planned transition to an inflation-targeting framework, and strategies to restore purchasing power and ease economic hardship. The CBN is continuing its disciplined approach to monetary policy, aimed at curbing inflation and stabilizing the economy. “These actions have yielded measurable progress: relative stability in the FX market, narrowing exchange rate disparities, and a rise in external reserves to over $40 billion as of December 2024.

    The CBN also focused on strengthening the banking sector, introducing new minimum capital requirements for banks (effective March 2026) to ensure resilience and position Nigeria’s banking industry for a $1 trillion economy,” he said. To further enhance the functionality of the foreign exchange market, the apex bank introduced an Electronic Foreign Exchange Matching System which has proven effective in other markets. The programme 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. For many stakeholders, these measures under Cardoso have not only lifted the forex market and entrenched long-lasting stability but laid solid foundation for economy and businesses to thrive.

    Banking sector indicators show resilience

    Cardoso explained that within the banking sector, the sector remains robust with key indicators reflecting a resilient system. “The non-performing loan ratio remains within the prudential benchmark of five per cent, showcasing strong credit risk management. The banking sector liquidity ratio comfortably exceeds the regulatory floor of 30 per cent, a level which ensures banks are maintaining adequate cash flow to meet the needs of customers and their operations. The recent stress test conducted also reaffirmed the continued strength of our banking system,” he said. To ensure that our banking system can effectively support the growth of our economy, efforts to strengthen banks’ capital buffers were announced in 2023 with a two-year implementation window.