Bureau de Change (BDCs) operators in Nigeria continue to grapple with the challenge of meeting the N2 billion recapitalization requirement set by the Central Bank of Nigeria (CBN), despite the recent extension granted by the regulatory body. The recapitalization drive, aimed at strengthening the financial stability of BDCs and curbing illicit financial flows, has proved difficult for many operators, particularly smaller firms with limited access to capital. The CBN initially set a deadline for the recapitalization, but following feedback from BDCs struggling to raise the necessary funds, the deadline was extended. However, many operators, particularly those in the informal sector,…
Author: Temitope N.
The rebasing of Nigeria’s Gross Domestic Product (GDP) is expected to benefit the services sector the most, according to analysts, who predict substantial growth in this area as a result of the updated economic calculations. The rebased GDP, which now includes a broader range of economic activities, shows the increasing importance of services, including telecommunications, financial services, and information technology, in driving the national economy. The National Bureau of Statistics (NBS) recently completed the rebasing process, adjusting the GDP calculation to reflect changes in the structure of the economy. The new methodology has revealed that the services sector’s contribution to…
Fidelity Bank has taken a step to support maternal health in Lagos by donating maternity kits to expectant mothers across the state. The initiative, part of the bank’s corporate social responsibility (CSR) program, aims to promote safe childbirth and improve the well-being of women in underserved communities. At the donation event held in Lagos, the bank distributed essential items such as baby clothes, diapers, antiseptics, and other maternal care products. The kits are designed to ease the financial burden on expectant mothers and ensure they have access to basic necessities during childbirth. Speaking at the event, Fidelity Bank’s Executive Director,…
The Federal Fire Service has announced plans to enforce mandatory insurance for buildings nationwide, a move aimed at improving fire safety and mitigating the financial impact of fire incidents on property owners. This initiative seeks to ensure compliance with existing fire safety regulations while providing a safety net for individuals and businesses in the event of fire-related disasters. Speaking at a recent press conference, the Controller General of the Federal Fire Service, Abdulganiyu Jaji, emphasized the importance of proactive measures in addressing fire risks. “Mandatory building insurance is not just about compliance; it’s about creating a culture of accountability and…
A report by the GSM Association (GSMA) reveals a significant shift in business priorities, with companies now placing greater emphasis on cybersecurity over traditional cost-cutting measures. This change reflects the growing awareness of the risks posed by cyber threats and the critical need to safeguard digital infrastructure. The report highlights that organizations across industries are allocating more resources to enhance their cybersecurity frameworks. This includes investments in advanced threat detection systems, employee training, and compliance with global security standards. The shift comes amid a surge in cyberattacks targeting businesses of all sizes, exacerbated by the rapid digital transformation brought about…
FirstBank of Nigeria has announced plans to extend its operations to Ethiopia, Angola, and Cameroon, signaling its commitment to broadening its footprint across Africa. This strategic move aligns with the bank’s vision of becoming a leading financial institution on the continent and capitalizing on emerging market opportunities. Adesola Adeduntan, CEO of FirstBank, revealed the expansion plans during a recent investor briefing, highlighting the bank’s focus on leveraging its expertise to support economic growth and financial inclusion in these target markets. “Our ambition is to bring FirstBank’s world-class banking services to more countries, fostering innovation and growth in Africa’s financial ecosystem,”…
Consumer sentiment in the United States fell to 73.2 in January, reflecting growing unease among Americans about the state of the economy. This figure, reported by the University of Michigan’s monthly survey, marks a decline from December’s reading of 77.6, signaling a shift in public confidence as inflation, interest rates, and geopolitical tensions weigh heavily on household optimism. The drop in sentiment is attributed to a combination of factors, including persistent inflationary pressures that have eroded purchasing power and uncertainty about the Federal Reserve’s monetary policy trajectory. Rising costs for essential goods, coupled with higher borrowing rates, have left many…
The inclusion of pension fund contributions in Nigeria’s rebased Gross Domestic Product (GDP) has sparked discussions among experts, who believe the move could enhance scrutiny and accountability in the pension sector. With the rebasing exercise reflecting a more accurate picture of the economy, attention is now shifting to the regulatory and operational frameworks governing pension funds. The National Bureau of Statistics (NBS) recently updated the GDP computation model to align with international standards, incorporating previously overlooked sectors and financial streams, including pension funds. The adjustment has revealed the significant contribution of pension assets to the economy, showcasing their role in…
The Nigerian banking sector navigated a transformative 2024, marked by significant recapitalization, stringent regulatory measures, and impressive profitability across the board. These developments underscored the sector’s resilience amid economic challenges and its adaptability to evolving financial landscapes. One of the year’s highlights was the recapitalization drive initiated by the Central Bank of Nigeria (CBN). Banks were required to bolster their capital bases to meet new regulatory thresholds, ensuring enhanced stability and improved capacity to withstand economic shocks. This move, though challenging for some financial institutions, strengthened the overall health of the sector and positioned it for sustainable growth. Regulatory interventions…
Amid recurring power outages and reliability issues, Dangote Group, NNPCL, Total, and 247 other companies have disengaged from Nigeria’s power distribution companies (Discos), opting to generate their own electricity. Collectively, these firms now produce an estimated 6,500 megawatts (MW) of power, highlighting a growing trend of self-reliance in energy generation among businesses. The decision stems from the inability of Discos to provide consistent and adequate electricity, which has hampered industrial productivity and increased operational costs for many firms. By investing in captive power plants, these companies aim to ensure uninterrupted energy supply, reduce downtime, and maintain competitiveness in a challenging…