Small and Medium Enterprises (SMEs) in Nigeria are grappling with stalled growth due to the ongoing foreign exchange (FX) crisis, which has led to soaring costs of imports and difficulty accessing foreign currencies. Operators in the sector have raised concerns about the adverse impact of FX scarcity on their operations, warning that continued inaction could undermine the sector’s contribution to the economy. Key Challenges SMEs, which account for about 48% of Nigeria’s GDP, face mounting challenges due to the FX crisis: – **Cost of Imports**: Businesses reliant on imported raw materials and equipment are struggling to keep up with escalating…
Author: Temitope N.
Nigeria’s inflation rate hit a staggering 33.88% in October, driven primarily by soaring energy costs. The surge, the highest in recent years, has compounded economic challenges for businesses and households alike. The Role of Energy Costs Economic experts highlight rising energy expenses as the core factor behind the inflationary trend: – **Fuel Prices**: The removal of subsidies earlier in the year led to a sharp increase in petrol prices, triggering higher transportation and production costs. – **Electricity Tariffs**: Businesses and households are grappling with steep electricity tariffs, inflating the cost of goods and services. – **Currency Depreciation**: A weakened naira…
In a bid to safeguard the livestock sector from the devastating impacts of disease outbreaks, the Federal Government has commenced the distribution of vaccines nationwide. This initiative aims to protect animal health, ensure food security, and stabilize livelihoods dependent on livestock farming. Containing Disease Spread Speaking during the launch of the vaccine distribution program in Abuja, the Minister of Agriculture and Rural Development, Abubakar Kyari, stated that the move is part of the government’s proactive measures to mitigate the risks posed by prevalent livestock diseases. He highlighted the economic losses that such diseases have caused in the past, emphasizing the…
The Nigerian Shippers’ Council (NSC) has called for robust collaborations to maximize the benefits of the African Continental Free Trade Area (AfCFTA). The council emphasized the need for public and private sector partnerships to position Nigeria as a key player in Africa’s trade integration agenda. Unlocking AfCFTA’s Potential Speaking at a stakeholder engagement forum in Lagos, the Executive Secretary of the NSC, Emmanuel Jime, outlined the vast opportunities that AfCFTA offers to Nigeria’s economy. With the agreement poised to create a single market for goods and services across 54 African nations, Jime stressed that Nigeria must strengthen its infrastructure, logistics,…
Mikano International, a leading provider of power and heavy-duty equipment in Nigeria, is gearing up to launch its latest range of mining equipment in Abuja. The unveiling, scheduled to take place at a high-profile event in the nation’s capital, signals the company’s foray into bolstering Nigeria’s burgeoning mining sector with state-of-the-art machinery. Supporting Nigeria’s Mining Ambitions The mining sector is a critical component of Nigeria’s economic diversification agenda. With over 44 solid minerals identified across the country, there is significant potential for growth. Mikano’s investment in mining equipment is seen as a strategic response to the increasing demand for modern…
The International Monetary Fund (IMF) has emphasized the urgent need for substantial global financial support to address the economic challenges facing Sub-Saharan Africa. The call highlights the region’s struggle with economic recovery, debt sustainability, and the adverse impacts of global financial tightening. A Region in Crisis Sub-Saharan Africa continues to grapple with the lingering effects of the COVID-19 pandemic, the global energy crisis, and climate change. Many countries in the region are also burdened by rising inflation, depreciating currencies, and declining foreign direct investment. According to the IMF, these challenges have pushed several nations toward economic fragility, with growth rates…
Wema Bank, one of Nigeria’s leading financial institutions, has been recognized with multiple prestigious awards in the banking sector, highlighting its commitment to excellence, innovation, and customer-centric services. These accolades reinforce the bank’s position as a trailblazer in digital banking and a trusted partner for financial growth. Recognized for Excellence At the recent awards ceremonies held in Lagos and Abuja, Wema Bank clinched titles across several categories. The awards celebrated its outstanding achievements in areas such as digital transformation, customer service, and financial inclusion. These recognitions include: 1. **Best Digital Bank of the Year** – For its innovative *ALAT by…
The Raw Materials Research and Development Council (RMRDC) and members of the National Assembly have intensified efforts to halt the importation of materials that are readily available within Nigeria. This move aligns with the federal government’s agenda to promote local content, boost industrial growth, and conserve foreign exchange. Advocacy for Local Resource Utilization The Director-General of the RMRDC, Professor Hussaini Doko Ibrahim, highlighted the economic drawbacks of importing raw materials that can be sourced domestically. Speaking during a recent stakeholder engagement in Abuja, he stated that over-reliance on imports undermines local industries and contributes to trade imbalances. “Many industries are…
Nigeria’s oil sector is poised for a significant revenue boost, with monthly earnings projected to reach N6.9 trillion as production levels rise, according to recent industry estimates. This comes on the back of improved crude oil output and stable global oil prices, signaling a potential turning point for the nation’s economy. Production Recovery and Growth Crude oil production has shown steady improvement, with output nearing 1.8 million barrels per day (bpd), up from an average of 1.3 million bpd recorded earlier this year. This recovery is largely attributed to enhanced security measures in oil-producing regions, particularly the Niger Delta, and…
President Bola Ahmed Tinubu is expected to present Nigeria’s proposed 2025 budget, estimated at a historic N47 trillion, to the National Assembly today. If approved, this budget will mark a significant milestone, being the largest in the country’s history, as it seeks to address Nigeria’s economic challenges and drive growth in critical sectors. Focus on Economic Recovery The 2025 budget, tagged *“Budget of Renewed Hope and Growth,”* reflects the Tinubu administration’s commitment to reviving the economy amidst fiscal pressures, including high inflation, revenue shortfalls, and the lingering effects of subsidy removal. The budget prioritizes infrastructure development, energy transition, job creation,…
FirstBank of Nigeria has announced its sponsorship of the inaugural Lagos Theatre Festival, a landmark event celebrating the vibrancy and diversity of the performing arts in Nigeria. This festival, held at various venues across Lagos, aims to showcase both emerging and established talents in the theatre, film, and arts sectors, solidifying Lagos as a cultural hub for creative expression in West Africa. Supporting the Arts: FirstBank’s Commitment to Culture and Community FirstBank’s sponsorship of the festival underscores the bank’s commitment to community building and support for the creative industry. Recognizing the arts as a powerful tool for social connection, FirstBank…
The Chartered Institute of Stockbrokers (CIS) has awarded fellowship honors to key figures in Nigeria’s financial sector, including the Director-General of the Securities and Exchange Commission (SEC), Mr. Lamido Yuguda. The fellowship awards, one of the most prestigious recognitions in Nigeria’s capital market, were presented at a recent ceremony held to acknowledge individuals for their significant contributions to the growth and development of the industry. Recognizing Leadership and Commitment in Capital Markets Mr. Yuguda’s fellowship from the CIS is a recognition of his outstanding leadership and ongoing efforts to drive transparency and investor protection within the Nigerian capital markets. Since…
The Nigerian Ports Authority (NPA) has commended APM Terminals (APMT) for its steadfast commitment to upholding stringent safety standards across its operations in Nigeria. APMT, a leading global terminal operator, has maintained rigorous safety protocols at its Apapa terminal, contributing to the overall safety, efficiency, and reliability of Nigeria’s port infrastructure. APMT’s Safety Commitment: A Model in Port Operations APMT’s dedication to safety involves strict adherence to global safety practices, continuous staff training, and the use of state-of-the-art safety technology. These measures have created a safer work environment for employees, port users, and visiting seafarers. By prioritizing safety, APMT has…
In a collaborative effort to support female entrepreneurship in Nigeria, the Nigerian Bottling Company (NBC) and the Women in Management, Business, and Public Service (WIMBIZ) have awarded a N1 million grant to a promising female entrepreneur. This initiative forms part of a broader commitment by both organizations to empower women in business and foster economic growth by providing critical financial resources, mentorship, and networking opportunities for Nigerian women. Empowering Female Entrepreneurs: The Importance of Financial Support Female entrepreneurs in Nigeria, and across the world, often face unique challenges, including limited access to finance, restricted business networks, and cultural biases. Financial…
The Federal Government of Nigeria has pegged the investment gap in the power sector at an estimated $10 billion, highlighting the need for substantial funding to meet the nation’s energy needs and accelerate economic development. The assessment underscores the critical infrastructure shortfalls that continue to hinder reliable electricity generation, transmission, and distribution across Nigeria. Investment Needs and Sectoral Challenges Despite decades of reform efforts, Nigeria’s power sector remains fraught with challenges, including inadequate generation capacity, inefficient transmission networks, and distribution bottlenecks. The $10 billion investment gap estimate reflects the scale of resources required to address these issues and modernize Nigeria’s…
The Nigerian National Petroleum Company Limited (NNPCL) has announced the appointment of new Executive Vice Presidents (EVPs) and a Chief Financial Officer (CFO), as part of its strategic move to bolster leadership and drive operational efficiency. The newly appointed executives bring a wealth of industry experience and are expected to play a pivotal role in advancing NNPCL’s objectives in the rapidly evolving energy sector. Strategic Significance of the New Appointments NNPCL, which recently transitioned from a government-run corporation to a limited liability company, has been working to transform its operations, boost profitability, and adapt to global energy trends. The appointment…
The University College Hospital (UCH) in Ibadan, Nigeria’s premier teaching hospital, has been disconnected from the electricity grid by the Ibadan Electricity Distribution Company (IBEDC) due to an outstanding debt exceeding N400 million. This disconnection has raised serious concerns about the hospital’s operational capacity, particularly in maintaining critical healthcare services reliant on constant power. Background of the Debt and Disconnection According to IBEDC, UCH’s unpaid electricity bills have accumulated over time, reaching the significant sum of over N400 million. This outstanding balance has strained the financial relationship between the two entities, culminating in the recent disconnection. IBEDC has stated that…
In response to rising demand for safe and reliable travel between Abuja and Kaduna, the Nigerian Railway Corporation (NRC) has announced the expansion of its train services on this key route. The move is part of NRC’s commitment to improving transportation infrastructure and providing affordable, efficient options for the growing number of commuters traveling between these two cities daily. Addressing Rising Demand and Safety Concerns With an increasing population and limited transport alternatives, the Abuja-Kaduna route has become essential for both daily commuters and travelers seeking safer and quicker alternatives to road travel. The expansion includes additional trains and revised…
In a bid to promote female entrepreneurship in Nigeria, the Nigerian Bottling Company (NBC) and the Women in Management, Business, and Public Service (WIMBIZ) have awarded a N1 million grant to a promising female entrepreneur. This initiative aligns with their shared mission to empower women in business, enhance economic growth, and foster sustainable development through gender inclusivity. Empowering Women Entrepreneurs in Nigeria The grant comes as part of NBC and WIMBIZ’s broader strategy to support women in overcoming barriers to entrepreneurial success. For many women, accessing capital to start or expand their businesses remains a significant challenge, limiting growth opportunities…
A new economic report has projected a steep decline in the value of the Nigerian naira, suggesting that it could weaken to N1,993 against the US dollar if certain economic factors are not addressed. This forecast, while alarming, has triggered discussions among financial experts, policymakers, and citizens about the underlying causes and potential measures to stabilize the currency. Factors Driving the Projected Naira Depreciation The report highlights several key drivers behind the anticipated depreciation. Primary among them is the enduring imbalance between Nigeria’s import and export levels. As Africa’s largest economy, Nigeria is highly dependent on imports for a significant…