Improved Global Approval Rating to Boost Nigeria’s International Standing
Moody global credit agency upgrades Nigeria’s issuer ratings from ‘Caa1’ to ‘B3’ following economic stability achieved by the country’s “bold reforms.” Moody Ratings a Global credit agency that evaluates the creditworthiness of various entities, including governments, corporations, and financial institutions. They assign ratings, which are opinions on the relative risk of default on an issuer’s financial obligations. Moody’s ratings are used to assess the potential risk of loss for investors. Issuer upgrade from moody boost investor confidence in Nigeria, as the country move from “Caa1 to B3, with a stable outlook, citing significant improvements in Nigeria’s external and fiscal positions.” The latest development aims to improve the country global image; Nigeria will be viewed as low credit risk by development partners. The ministry of finance issued a statement welcoming the development from the global credit agency. “This decision reflects growing domestic and international confidence in Nigeria’s ongoing economic reforms and improvements in the country’s fiscal and external positions under the administration of President Bola Ahmed Tinubu.” The development follows a similar improvement by Fitch Agency, which recently upgraded Nigeria’s credit ratings from ‘B-‘ to ‘B’ with a stable outlook. It’s the second time Moody is upgrading the country’s rating since 2023, “following its previous upgrade from Caa1 Stable to Caa1 Positive in December 2023.” Moody attributed Nigeria’s new face to the government’s commitment to correcting macroeconomic imbalances, enhancing fiscal transparency, and implementing structural reforms, while highlighting key measures which includes: tax reforms and the adoption of a more flexible, market driven foreign exchange regime, which it noted, “has greatly bolstered external reserves.” However, foreign exchange reserves reached $23.11 billion at the end of 2024 the highest over the past 3 years, up from $3.99 billion in 2023, $8.19 billion in 2022, and $14.59 billion in 2021. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, said the upgrade is an ‘encouragement’ for the tinubu-led administration to stay on course with current economic reforms. “We are encouraged by Moody’s recognition of our reform agenda,” the minister said. “This positive outlook reflects our administration’s determination and the tremendous work being carried out across various ministries, departments, and agencies — including our monetary policy authorities at the Central Bank of Nigeria (CBN)” he added. Meanwhile the CBN monetary policy committee, pegged policy rate at 27.50%. Mr. wale edun stressed this improvements will “stabilize the economy, attract investment, and ensure inclusive and sustainable growth for all Nigerians.” Tinubu-led Administration. Since taking office, in may 2023 the Tinubu-led administration has implemented tough but necessary policy measures to tackle long standing economic challenges; meanwhile some citizens and business stakeholders don’t agree with the policy, which they consider ‘harsh’. However, this policy has led to enhanced revenue mobilization, improved public financial management, and strategic partnerships to unlock infrastructure financing and increase private sector participation. Finance ministry noted the recent upgrade of Nigeria’s sovereign rating is particularly timely as the administration priorities “accelerating rapid, sustained, and inclusive growth, supported by both domestic and foreign private investment.” “In partnership with Central Bank of Nigeria, the Ministry of Finance remains committed to preserving macroeconomic stability, ensuring debt sustainability, and maintaining sound fiscal management. The government will continue to collaborate with both domestic and international partners to boost investor confidence and enhance Nigeria’s global credit standing.” Ministry of Finance noted.
Sidi Ould Tah Elected as 9th president of Africa Development Bank
At the bank’s annual meeting held in Abidjan, Côte d’Ivoire, Tah secured 76.18% of the total votes and 72.37% of the regional votes in the third voting round, massively defeating his opponents. The Africa Development Bank (AFDB), one of the continent’s largest financier and investor is set to have a new leadership on the 1st of September 2025, following the general election held on Thursday, where sidi ould tah emerged as winner, after three intense voting rounds, defeating Zambia’s Samuel Maimbo, Senegal’s Amadou Hott, Chad’s Mahamat Abbas Tolli, and South Africa’s Swazi Tshabalala. The winner is required to obtain at least 50.01% of both the regional and non-regional votes, Ould Tah secured 76.18% of the total vote and 72.37% of regional votes in the third round of voting, a crystal majority signaling the strength of his mandate. The 60 year old is set to become the banks 9th president taking over from Akinwumi Adesina, who held the position for 10years after his election in 2015. Akinwumi adesina is highly respected for his massive contributions to the progress of AFDB and Africa, his contributions are vividly remembered by all, key highlights of his performance; was growing the banks fortune from $93 billion in 2015 to over $350 billion in 2025, with massive investments in digital and inclusive infrastructural development delivered across different states in the region. Mr. sidi ould tah a Mauritanian national, born on the 31st December 1964, an economist with over 35 years experience; for decades he has been in several leadership positions: Minister of Economy and Finance, Minister of Economic Affairs and Development, respectively in his country. Until April he was the director general of the Arab Bank for Economic Development in Africa (BADEA), however, Tah’s success in the financial institution is immeasurable he led a 376% capital expansion and launched the institution’s first ten year strategy. As director, approval rating for BADEA increased significantly under his leadership, In May 2025, BADEA received an AA+ rating from S&P. BADEA became a major driver in small and medium enterprises finances (SMEs), inclusive infrastructural development, and digital platforms growth. In his victory speech; Tah thanked his supporters, regional and non-regional leaders for their efforts which led to his success in the just concluded election, while describing his awaiting role as a “beginning of a challenging yet inspiring journey” adding “together, we will drive Africa’s transformation with unity, ambition, and purpose.” Following his victory, Tah received congratulatory messages from several world leaders and directors, with hopes he’d thread in same footprints as his predecessor. Four Explosive Cardinal Points. During his campaign, Tah noted 4 cardinal points which he believes will bring transformation to AFDB. For his five year tenure which begins on the 1st of September, Tah will be working on these four point agenda, which was his campaign ‘Gospel’. Tah plan to consolidate the Bank’s Financial Capacity, by attracting funding from various partners and investors. “Under my leadership as president of the African Development Bank Group, the AfDB will not limit ambition to its available capital. I will utilize callable capital, attract private co-financing, and enhance our impact using structured instruments that align with Africa’s needs.” Tah noted. Also his second agenda is Delivering Results at Scale; he intends to do more key projects in the region. “In development, scale is not just an aspiration; it is a test. I will transform AFDB from fragmented pilot projects to flagship interventions that have a multi-country reach, a real implementation framework, and measurable results.” He said. Strengthen Institutional Credibility, is the president elect third agenda. “Institutions succeed or fail based on the confidence they command. Under my leadership, the AFDB will restore this confidence through clear fiduciary standards, skilled staff, and predictable governance.” He said. Finally, Deepen Partnerships and Global Relevance, the fourth point; for Mr. Tah Africa doesn’t need aid he believes in strategic partnerships instead. “The next AFDB President must speak to investors in Riyadh, Beijing, and Nairobi with equal fluency. I bring a partnership model built not on aid but aligned capital and shared purpose.” The president elect said. NWALI CHIDOZIE MICHEAL.
DMO: High investor confidence-Nigeria sukuk VII records excess subscription
The N300 billion Naira series VII sovereign sukuk recently offered by the federal government of Nigeria through the debt management office (DMO), recorded an “unprecedented” subscription level of N2.205 trillion Naira, which represents an excess of 735% subscription, sighting huge investor confidence for the non-interest certificate. The past years, different government has been exploring various means of funding options, for capital projects, from both the international and domestic markets; this led the Nigerian government and cooperate groups, in recent years to attract funding from investors through an Islamic bond ‘sukuk’. Sukuk represent ownership in an underlying asset, project, or business activity that generates returns based on the asset’s performance. Unlike conventional bonds, Sukuk adhere to Shariah principles, ensuring ethical and interest-free investment opportunities. Nigeria first issuance of sukuk was in 2013 by the osun state government for the building of 26 schools, using Ijarah Sukuk of 11.4 billion naira (approximately $27.5 million), Sukuk issuances in the Nigerian financial markets has since then became frequent. The DMO’s innovation in ethical finance has been widely acknowledged within and beyond Nigeria’s borders. It continues to play a central role in mobilising investors to fund infrastructure without breaching the fiscal deficit threshold prescribed by the Fiscal Responsibility Act, while improving capital market development through diverse product offerings. On the 12th of may the Federal Government started the sales of sukuk VII, with a rental rate of 19.75% per annum and due for maturity on May 2032. According to a statement from DMO, the islamic certificate recorded massive subscription from investors; Signifying a clear evidence of the huge investor-appetite for the ethical instrument. Sukuk VII provided opportunities for all Nigerians to participate in the activities of the capital market, while expanding the nation’s investor-base. “An analysis of the subscriptions showed that the subscribers cut across various segments of the public: retail, non-interest banks and financial institutions, banks, pension fund administrators, asset/fund managers and others.” DMO noted. However, capital accumulated from the issuance of the recent sukuk will be used for construction of roads and building of bridges in all the geo-political zones in country, by the federal government. “Like the previous series, funds realized from the Issuance will be used by the FGN to construct new roads and rehabilitate existing ones, as well as build bridges in the six (6) geo-political zones of the country and the Federal Capital Territory.” “The raising of funds through Sukuk to finance infrastructure projects aligns with Mr. President’s Renewed Hope Agenda of which infrastructure development is a key pillar.” DMO noted. Debt management office said that infrastructure investments financed through Sukuk have consistently delivered tangible results across the country. Previous issuances under the Sukuk programme have been utilised to complete over 44 key road projects spanning more than 4,000 kilometres, while improving access to rural and urban communities and reducing travel time and vehicle operating costs. Previous N100billion Naira sukuk bond. The recent sukuk VII isn’t the first time the government is issuing the Islamic bond, the first ever sovereign sukuk was introduced in 2017 by the then president Buhari administration, it was a N100 billion Naira bond for road infrastructure. DMO however, disclosed that the government has fulfilled its obligations to investors, who purchased the 2017 non-interest certificate; Sighting its commitments to transparency and accountability; all investors received full returns of their investment. The numerous road projects funded by the 100bn Sukuk fund in 2017 included projects in the South West, South-South, South East, North Central, North East, and North West zones. Meanwhile, framework of the Sukuk issuance ensured that the Central Bank of Nigeria (CBN), serving as the Paying Agent, distributed periodic rental payments to Sukuk holders on scheduled dates. Upon maturity, the government acquires the underlying road assets, then, principal amounts are transferred in bulk to the Sukuk holders, concluding the investment cycle. NWALI CHIDOZIE MICHAEL
Nigeria: Borrowing Essential for Economic Prosperity- won’t increase debt burden, Tinubu.
The federal ministry of finance, justified the proposed massive external loan request by the Nigerian president; which sparked controversy among citizens and stakeholders, who ‘hoped’ to see the country free from debts obligations to external lenders; the ministry described the loan request as an essential component of the medium-term expenditure framework (MTEF), with the aims of setting balance in fiscal deficits, budget priorities and resources allocation over 2024-2026 period. In three separate letters transmitted to the National Assembly on Tuesday which contain requests from the Nigerian president Bola Tinubu seeking the approval of the legislative for fresh loans, totaling over 38.5 trillion Naira. the first letter, the president seek National Assembly approval to raise $2 billion through the issuance of foreign currency denominated financial instruments (services with value or payment linked to other currencies aside the Naira) in the country’s domestic market. The president made reference to the executive order signed earlier in October 2023, by the government. “This request is pursuant to the provisions of Section 44 (1) and (2) of the Fiscal Responsibility Act 2007 and Section 1(7) of the Executive Order, which requires National Assembly approval for all new borrowings and appropriation of the proceeds” Tinubu wrote. The president noted that the loan would be invested in key sectors of the economy, to boost growth, job creation and foreign exchange earnings. He said the capital raising won’t increase external debt burden. The Nigerian president second request features a borrowing plan amounting to $21.5 billion, €2.2 billion, 15 billion Japanese yen and €65 million in grants for the year 2025-2026, Mr. Tinubu noted that, the proceeds will fund priority projects in key areas of development which includes: education, health, agriculture and tackling unemployment. However, the multi-currency proposed borrowing amounts to over 38.5 trillion Naira when calculated on the current exchange rate of 1600 per U.S dollar. Meanwhile, if approved; the recent request will join series of foreign loans secured by the administration over the last two years. President Tinubu expressed that the borrowing plans were of significant importance to facilitate the administration fulfill its commitments to the nation through early resources disbursement and effective key project financing. Contained in the third prayer to the legislative, the president Tinubu requested the National Assembly, approves the issuance of Nigerian federal bonds worth N757.98 billion in the domestic market to offset outstanding pension liabilities under the Contributory Pension Scheme as of December 31, 2023. The request, he said, follows the federal government’s non-compliance with several provisions of the Pension Reform Act (PRA) 2014 over the years largely due to revenue constraints. “This bond issuance will enable the federal government to meet its obligations to retirees, restore confidence in the pension system, and improve the welfare of retired public servants,” Tinubu wrote. All three requests have made its way to the Assembly house committee on finance for further deliberations and legislative action. Concerns Arising. Sighting the huge borrowing figures, many Nigerians have been thrown off-balance; with questions concerning the proposed borrowing. Prompting the federal finance minister to shed more light on the borrowing plans providing context and clarity. According to a press release from the federal ministry of finance, the borrowing plan is in accordance with the Medium-Term Expenditure Framework (MTEF) with both the Fiscal Responsibility Act 2007 and the dept management office (DMO) Act 2003. The objective of the DMO is to minimize, over the long term, the cost of meeting the Government’s financing needs, taking into account risk, while ensuring that debt management policy is consistent with the objectives of monetary policy. Citizens are of concerned if the proposed loans are taking place this year; however, the ministry highlighted that the loans do not “equate” actual borrowing for the year, pointing out that borrowing for this year is accounted for in the budget, which is $1.23billion, and has not “yet been drawn.” Meanwhile the release highlighted no geopolitical zone will be left out; as the proposed borrowing plan is for both federal and state governments across the country’s six geopolitical zones. According to the press release the debt rolling plan is not an “automatic increase” in nation’s debt burden, for the loans is tied to key projects, and borrowings are split over the period of which the projects are being carried out. “a large proportion of projects in the 2024. – 2026 rolling plan has multi-year draw downs of between 5 – 7 years which are project-tied loans.” It noted. These projects cut across critical sectors of the economy, including: power grids and transmission lines, irrigation for improving food security, fiber optics network across the country, fighter jets for security, and rail and road infrastructure. Source: Nigeria Development Partners to the Rescue. Many Nigerians are anxious with the sources for the proposed loans and how it’s to be managed; the government made it clear that majority of the borrowing will be sourced from Nigeria’s Development Partners, which includes: including the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, China EximBank, and the Islamic Development Bank. The government noted these financial institutions offer “concessional financing with favorable terms and long repayment periods,” which, thereby “support Nigeria’s development objectives sustainably”. Government argued. However, the government reiterates that the debt service to revenue ratio has started decreasing from its peak of over 90% in 2023, sighting the “ended of the distortionary and inflationary ways and means”. Meanwhile the Tinubu-led administration has recently cleared the $3.4billion emergency loans procured from the IMF by the previous government. The administration loudly optimistic about the revenue growth in the state owned enterprises and agencies, it pointed out significant revenue expectations from the Nigerian National Petroleum Corporation (NNPC), and technology-enabled monitoring collection of surpluses from revenue-generating ministries, departments, and agencies, including legacy outstanding dues. “Having achieved a fair degree of macroeconomic stabilization,” with applause from IMF/World Bank; the ministry justified that decision for the proposed 38.5trillion Naira loan; say-it will “pivot the economy onto a path of rapid, sustained, and inclusive economic growth.”
SpaceX: Reaching the unconnected, Starlink broadband expansion in Africa
Africa continues to embrace satellite technology, with Starlink transforming broadband access and reshaping the telecommunications industry in Africa. The technology has received overwhelming support from different Africa countries, with government, give out operating licenses to Starlink as sign of goodwill, even while local service providers kicks against it. Nigeria the most populous country in Africa, was the first in the continent to accept Starlink operations in January 2023, and since then the technology has spanned across 15 other African countries (Benin, Botswana, Burundi, Cape Verde, Eswatini, Ghana, Kenya , Liberia, Madagascar, Malawi, Mozambique, Niger, Nigeria, Rwanda, Sierra Leone, South Sudan, Zambia, Zimbabwe) and plans to expand to more countries before the end of 2025. Aside Nigeria Starlink also has big market in: Mozambique, Rwanda, Kenya and Malawi. Starlink has over 65,000 subscribers in Nigeria a significant increase from 23,897 subscribers when it first launched in 2023, and has made its way to becoming the second largest internet service provider (ISP) in the country. The technology has over 237,000 subscribers in Africa, with a growing presence in over 15 countries. Starlink deliver high internet speed services through a network of over 5,600 low-earth orbit (LEO) satellite, deployed into the orbit by spaceX since 2019. Series of performance tests shows that Starlink’s download speeds can exceed 100 megabits per second in different countries, enhancing the quality of internet-powered activities including live streaming, online gaming and video calls. meanwhile, the progress Starlink has made within Africa, doesn’t sit right with other local ISP,for its gaining the most subscribers while investing less in ground infrastructure, compare to other local telecom companies. Africa has low internet connectivity rate of 43%, below global average of 66%, its due to the fact that, 57% of Africa population resides in rural areas with most not having access to electricity. To foster broadband connectivity in rural areas, airtel Africa, a leading telecommunications company in Africa has just recently partnered with spaceX to roll-out Starlink’s high-speed satellite internet across nine of its 14 African markets. Broadband access for rural areas. The airtel satellite deal with Starlink will benefit immensely people and businesses in rural areas, for most of airtel customers reside in regions where internet access is relatively low. For airtel, it’s a strategic move to boost and improve connectivity in rural communities within the region while offering customers high internet speeds services. Airtel Africa will leverage Starlink’s low-earth-orbit satellite technology alongside its ground infrastructure to bridge the continent’s digital divide. “This collaboration is a game-changer for digital inclusion,” Airtel Africa said. “This partnership with SpaceX is a significant step to demonstrate our continued commitment to advancing Africa’s digital economy through strategic investments and partnerships. Airtel Africa Managing Director and Chief Executive Officer, Sunil Taldar said. This move will supercharger connectivity in rural areas. For Starlink the deal presents an opportunity to significantly expand its digital footprint in Africa internet service markets. SpaceX has secured operating license in nine countries within Airtel Africa’s foothold, including Nigeria, Kenya, and Zambia, with applications pending for the remaining five. “We are very excited to work with Airtel to bring the transformative benefits of Starlink to the African people in new and innovative ways. Vice President of Starlink Business Operations, Chad Gibbs, said. He further highlighted the immense opportunity the collaboration will provide for the region and also, aid in Starlink market expansion. The partnership targets Airtel’s 163 million customers across markets like Nigeria, Ghana, Zimbabwe, and Cape Verde, where demand for reliable internet in education, healthcare, and commerce is soaring. “this agreement with Airtel highlights how, once licensed, Starlink welcomes the opportunity to join forces with important industry leaders to ensure as many people as possible can benefit from Starlink’s presence.” He added. Collaboration with spaceX will see Airtel Africa integrate Starlink’s satellite tech to boost its offerings, targeting enterprises, health centers, and underserved regions. Barriers with operating license. While spaceX is receiving overwhelming support within Africa, from government waivers – residence acquiring and subscribing to Starlink; however, there’s a stumbling block with South Africa, the birthplace of spaceX owner and founder Elon Musk. South Africa which poses as a potential big market destination for Starlink, for it’s modernize large economy in Africa. However South Africa’s government has not given Elon musk the nod to go ahead and launch spaceX technology in the country, despite several dialogues and negotiations between both parties. The government has been reluctant to give Starlink an operational license, cause Pretoria insists that the company will have to give out 30% of share equity in the country to be owned by natives, women or people with disabilities, which Elon musk is yet to commit. It’s a standard practice for any telecom seeking license in South Africa. Although some report says Elon musk struggles with gaining operational license in the country is due to supporting the narrative of an allege genocide of white farmers in South Africa, which the government has denied countlessly any claim of such act in the country. NWALI CHIDOZIE MICHAEL
Cocoa an alternative for Nigeria oil revenue short falls?
The price surge and increasing global demand for cocoa in 2024 toward the subsequent year, become a wake-up call for the Nigerian government to foster the development of the cocoa industry in the country, with the aim of competing in the global market, this is coming 30 years after the government has shifted attention from the commodity and focused more on crude oil, which price is seen to be declining and cocoa price soaring. Nigeria the 4th largest cocoa producer in the world, only behind Cote d’Ivoire, Ghana and Indonesia. Nigeria contributes approximately 6% of cocoa global supply; with smallholder farmers contributing 80% of the country’s production. The commodity is also the country’s top agricultural export. In 2023 Nigeria exported over 366,286 metric tons of cocoa beans with revenue over $669 million the subsequent year comes a huge revenue increase of $1.8billion, this was driven by higher demand for the commodity, climate change and disruption in supply chain; all this led to the surge in price. The commodity was trading at $2000 per ton in 2023, it soared to over $12000 in 2024 a massive over 500% increase, within 3 years. price surge of cocoa and significant increase in global demand has made trading the commodity more profitable compare to oil trade, which is currently facing lots of global challenges , with western countries advocating for energy shift, away from fossil fuels to renewable energy, for the sake of preserving the climate. Thinkbusiness Africa previously reported the decline in oil price and the low oil production in Nigeria, the risk it poses to the country’s 2025 national budget. The 54 trillion naira budget which was projected on a daily oil production of 2.06 million barrel per day and benchmark of $75 per barrel; however, the projections appears grossly optimistic, as the year kicked off with 1.6 million barrel per day in January and has remained below in the subsequent month, also price has gone below $60 a barrel and currently trading above $65 as reported by Brent crude. The revenue challenges and global barriers associated with crude oil trade, has led the Tinubu administration into looking for means to diversify the economy away from oil revenue, which made administration start looking back at cocoa production, which the country turned away from, decades ago. Recently, the federal executive council drafted a bill for the establishment of the national cocoa management board (NCMB) to revitalize and regulate Nigeria’s cocoa sub-sector for enhanced economic development. This bill is currently on its way to the national assembly for enactment. This is president tinubu’s plan to reposition Nigeria as a giant cocoa powerhouse and ensure the prosperity of local cocoa farmers. According to abubakar kyari, the minister for agriculture and food security, he said the NCMB will rehabilitate old plantations, develop new ones and provide soft credit facilities to support farmers. For the government, the major aim is to create a sustainable cocoa economy to drive significant revenue for the country while massively creating jobs and contributing to the GDP. “the NCMB is designed to create a sustainable cocoa economy that contributes significantly to our GDP” kyari stated. “it will drive increased domestic consumption, industrialization, youth participation and higher foreign earnings” the minister added. Cocoa board? This isn’t the first time the country is having a board to oversee the development in the cocoa industry, the then cocoa board of 1986 was a part of wider economic reforms to deregulate cocoa and produce industries in the country, as part of condition for IMF loans, however farmers and stakeholders hated the board for its influence over the price of the commodity. Most cocoa farmers saw the board as an enemy to their progress. In a very recent interview with tribune newspaper, Oba Dokun Thompson the founder of international cocoa diplomacy (ICD) expressed that, the NCMB drafted by the FEC is very important for the development of cocoa industry in the country, he highlighted that, the industry has suffered greatly over the past 40 years without a central body to back it’s development progress. Stating the creation of a new board will enable the commodity industry “work well within” international regulatory bodies. “Now, the board will be able to work well within ICCO,UNCTAD,ITC,etc with a more concise approach for the well defined and measurable goals” he highlighted. For Mr. Thompson, he sees NCMB as a game changer for the commodity industry, highlighting that Nigeria is in the best position to showcase to the world how revenue from cocoa production can benefit all citizens and boost economic growth. “in short this bill will bring about the transformational power of cocoa in every sense of it” Mr. Thompson noted. EUDR: agricultural export barrier. Cocoa exports significantly contribute to Nigeria’s foreign exchange earnings, being a major non-oil export, the commodity contributed 2.62% to Nigeria GDP in 2024. Netherlands, Italy, Germany, Belgium, Malaysia and Indonesia; are Nigeria’s biggest cocoa buyers, however there’s often traceability barriers from European Union (EU) on agricultural exports, the EU are washing their washing their hands away from environmental degradation across the globe; hence the need to setup laws like the EUDR. The European Union Deforestation Regulation (EUDR), are set of rules designed to ensure that goods traded and consumed in the EU do not contribute to deforestation and forest degradation. It covers key commodities like cocoa, coffee, cattle, palm oil, rubber, soy, and wood, as well as many derived products. The EUDR aims to reduce the EU’s impact on global deforestation and forest degradation by requiring companies to demonstrate that their products are free from recent deforestation. Mr. Thompson expressed that, the NCMB will strengthen framework that will comply with the EUDR standards, so Nigeria won’t have any problems exporting agricultural commodities. He further talked about a plan to transition cocoa farming in Nigeria to organic cocoa production to aid sustainability. “There is also the plan to transition from conventional cocoa to organic cocoa and with the Board in place, the country can now work
ECOWAS: Labour migration strategy to drive mobility, integration in West Africa
Labour migration within the Economic Community of West African States (ECOWAS) region is a significant and vital component of regional integration and economic development in West Africa. Current strategic priorities of the Commission, offer channels to introduce labour migration-specific initiatives in the areas of social protection, small-scale cross-border trade, and youth employment. However, while there are many benefits in terms of economic growth and cultural exchange, issues such as inconsistent policy implementation and migration-related risks (dangers during transit, exploitation, health issues, and social tensions) remain a challenge. As such, addressing these issues through stronger governance, better coordination, and protective measures is crucial for maximizing the potential of labour migration in West Africa. In a historic advancement, ECOWAS and its technical partners,recently convened the implementation of ECOWAS Labour Migration Strategy and Action Plan (2025–2035); in Accra the capital city of Ghana. According to a press release from the commission, the strategy aims to “advance safe, regular, and rights-based labour mobility across the region.” Reports from ECOWAS shows labour immigration within the region concentrates on: Burkina Faso to Côte d’Ivoire (agriculture, cocoa production, domestic work); Niger to Nigeria (construction, informal trade, services); Mali to Senegal (fishing, manufacturing, textile industry), and Ghana to Nigeria (oil & gas, finance, education). Meanwhile Africa union (AU) reported the number of international migrant workers in the ECOWAS region in 2017 was 3.74 million, an increase of 26.2 per cent from the year 2008 when there were 2.97 million migrant workers in the region, and 4.3 million in West Africa which hosts the largest number of migrant workers. Out of the 3.7 million international migrant workers in West Africa, 1.6 million were women and young migrants (15-35 years old) made up 46 per cent of all migrant workers. Speaking on the strategy, The Honourable Minister for Labour, Jobs and Employment of Ghana, Dr. Abdul-Rashid Hassan Pelpuo, expressed optimism about labour immigration strategy, saying it’s time the region work together to integrate members of ECOWAS state in meaningful policies that will strengthen the region. While highlighting Ghana’s commitment to promoting inclusive labour governance. “a timely opportunity to move from fragmented policies to coordinated regional solutions,” Dr. Abdul said. Labour immigration strategy ECOWAS report expressed that a comprehensive Labour Migration Strategy and Action Plan is essential to address the challenges of labour migration and unlock its potential benefits for the socio-economic development of the ECOWAS region. Highlighting that; such a Strategy would ensure that labour migration contributes to economic growth, social inclusion, and regional integration while mitigating its potential risks. Thus, this ECOWAS Labour Migration Strategy and Action Plan (LMSAP) is critical to promoting free movement and labour mobility, protecting men and women migrant workers’ rights, improving data management and research, fostering labour market integration and development, while facilitating regional cooperation and partnerships. Mr. Joseph Akpan, Director of Wages and Employment in Nigeria’s Ministry of Labour, highlighted the importance of ensuring that “the strategy is relevant, realistic, and results-oriented,” underscoring the shared responsibility of all stakeholders in ensuring measurable impact. Strategic objectives 1: promote regular migration, labour mobility, and human security. according to ECOWAS this objective is aimed at the following: -Ensure equitable access to and participation in safe and regular migration opportunities and mobility pathways through the effective implementation of the ECOWAS Free Movement Protocol. -Ensure that labour migration is governed by clear, coherent, harmonized policies and legal frameworks across Member States. -Support development and the recognition of skills, qualifications, and experience across borders to facilitate better labour market integration and enhance employability of migrant workers in the labour markets of Member States. -Develop and operationalize a Labour Market and Migration Information System (LMMIS) to produce comprehensive, accurate and harmonized data on labour market, including labour migration. -Develop and implement strategies to address forced labour of migrant workers and linkages with smuggling, and trafficking in persons, while providing protection and assistance to victims. Strategic objective 2: Protect the rights of migrant workers. -Promote the rights and welfare of migrant workers and their families through ensuring fair and ethical recruitment and access to decent work. -Protection against exploitation and labour rights violations through strengthening of support and social services. Strategic objective 3: maximize the development impact of labour migration. -Leverage remittances and diaspora contributions for socio-economic development, including investment in key sectors such as education, health, and infrastructure. – Encourage the circulation of skills and knowledge between countries through programmes that support the return migrants and brain gain. Strategic objective 4: promote regional cooperation and strengthen governance capacities. -Build the capacity of Member States to manage labour migration effectively through evidence-based policy development, and enhanced coordination. -Enhance the role of ECOWAS institutions in monitoring labour migration trends and ensuring compliance with regional, continental and International agreements. -Foster regional dialogue and cooperation among ECOWAS member states to address common migration challenges and opportunities. -Strengthen partnerships with international organizations, civil society, and the private sector to enhance the governance of labour migration. Strategic objective 5: ensure gender and social inclusion in migration policies. -Integrate gender-responsive approaches in labour migration policies and programmes to ensure that the gender-specific needs as well as the needs of youth, persons with disabilities, and other vulnerable groups are addressed. -Promote social inclusion by reducing discrimination against migrant workers based on gender, ethnicity, or legal status. Further comments on the commission strategy, Ms. Fatou Diallo Ndiaye, Chief of Mission of IOM Ghana, Benin and Togo, emphasised the need for harmonised data systems, protection mechanisms for migrant workers, and actionable national policies. However Ms. Adaeze Emily Molokwu, a representative of AU, further underscored the need for Member States to align national instruments with regional frameworks, and to ensure the effective domestication of the Strategy as a driver of sustainable development, social cohesion, and enhanced labour mobility in West Africa. Meanwhile ECOWAS emphasized that implementation of this Strategy will directly impact the lives of millions of West African workers by formalising mobility pathways, strengthening job-matching mechanisms, and expanding
Nigerian startups take lead at Africa fastest growing companies 2025
The financial times (FT) recently published 130 lists of fastest growing companies in Africa for 2025, with Nigerian technology companies taking the 1st, 2nd and 3rd positions respectively. The list was dominated by South Africa and Nigeria companies, accounting for 79 businesses combined from the two nations. South Africa alone accounts for 51 businesses, the highest for any African country on the list; while Nigeria accounts for 28 businesses on the list. Nigeria continues to show that, indeed, it is the giant of Africa, not only in population but also in economic growth and entrepreneurship development. Nigeria has a population of over 200 million people, the largest in Africa according to world bank; with the 4th largest GDP ($188.27 billion)in the continent, only behind Algeria with $268.86 billion, Egypt $347.34 billion and South Africa with the highest GDP of $410.35 billion. Occupying the FT top3 are Nigerian business giants: Omniretail Inc, an E-commerce company leading the list , palmpay Ltd. a financial technology company ranking 2nd on the list, and Remedial Health Inc. a Pharmaceuticals & Cosmetics business ranked 3rd. The top 3 ranking shows Nigeria’s prowess in economic, technology and innovative domination in Africa. According to financial times, fintech is the fastest growing industry in Africa, with fintech companies making 20% on the overall list, 26 fintech companies around Africa appeared on the list. Subsequently followed by IT& software companies, 21 IT software companies also appeared on the list. This highlights that the shape of financial services in Africa is significantly changing. The FT ranking, compiled in conjunction with research company Statista and now in its fourth year, is backward looking, ranking businesses according to the compound growth rate between 2020 and 2023. Omniretail Inc. Omniretail ranking 1st on the list is an E-commerce company on a journey to accelerate trade value chain stakeholders’ progress by unlocking access to services and the flow of working capital, with the vision to build the largest profitable network of retailers in Africa, by simplifying distribution and retailing of essential goods in the region. Their platform connects manufacturers with retailers, facilitating online ordering and transactions. Omniretail was established in January 2019 in Lagos state, Nigeria. By June 2020 they lunched their app and digitalized their first 1000 retailers in November 2020, they expanded to 5 states by June 2021 and grossed N1billion Naira transactions in July and were able to digitalize 35,000 retailers by the end of 2021. However, within 2022 omniretail secured $3million funding, partnered with over 50 manufacturers and increased number of retailers to 65,000. By 2023 they scaled up heavily after securing $7.5million funding from marquee investors. They grossed over 100billion Naira transactions and launched in Ivory Coast and retailers grew to over 100,000 within the end of 2023. In 2024 omniretail launched in Ghana and transactions grossed over 500billion Naira. Omniretail currently operates in 3 countries (Nigeria, Ghana and Ivory Coast) and is the fastest growing company in Africa. PalmPay Ltd. Ranking 2nd on the FT list, a fintech innovative startup with the aim of making digitized payments more accessible and flexible. Report says palmpay offers faster financial services than traditional banks. By 2018 palmpay launched in Nigeria, and rolled out financial services in Nigeria in 2020, their financial services which includes giving out small loans to users. 2021 comes the big expansion after securing a $100million series A funding. The funding was secured from multiple investors, including: Chuangshi Capital, Yushi Capital, and AfricInvest. 2022 palmpay launched in Ghana, the subsequent year; they recorded revenue of over $63million (2023), 30million users, 2500 plus global employees and over 500000 agents around Africa. Remedial Health Inc. ranking 3rd on the 130 financial times list, is Remedial Health, a health technology company that provides inventory, software, data and financing solutions to healthcare providers and small businesses in Africa. At Remedial Health, they provide a technology-driven platform that streamlines pharmaceutical procurement, enables real-time inventory management, offers actionable business insights, and delivers flexible financing options—empowering healthcare providers to operate more efficiently and serve their communities better, they offer solutions that seek to streamline pharmacy operations and close the gap between pharmacies and wards/patients. Remedial health inc was founded in September 2020 by Samuel Okwuada and Victor Benjamin both has a combined 20 years experience in pharmaceutical and software development sectors in Africa, they launched remedial health in march 2021, by august, they grossed 300 pharmacies network served by Remedial Health. However in October over $800,000 worth of inventories deployed, later in November 2021 they secured a $12 million funding to expand their services around Africa. They recorded $16 million revenue in 2023 and currently employed over 300 staffs.
World bank: Macroeconomic reforms not enough for inclusive growth in Nigeria
Reports from word bank noted Nigeria’s macroeconomic situation is significantly improving as a direct result of sustained economic reforms; however inflation rate will maintain its double digits while it’s expected to fall to an annual average of 22% in 2025. This was disclosed in world bank’s latest edition of Nigeria development update (NDU) titled “building momentum for inclusive growth” The recent NDU shows that economic growth in the last quarter of 2024 increased to 4.6% year-onyear (yoy), pushing growth for the full year 2024 to 3.4%, the highest since 2015 (excluding the 2021-2022 COVID-19 rebound) the growth was driven by service and modest oil production recovery, with business activities expanding in the early months of 2025 from less than 50% in November 2024 to over 54%, according to the CBN and stanbic purchasing managers index(PMI). Recent reforms have also helped to strengthen the foreign exchange (FX) market and Nigeria’s external position, the NDU reported that FX reform has helped achieved “market-reflective, unified, and more stable exchange rate” and has significantly increased Nigeria’s foreign reserve buffer. Nigeria foreign reserve gross over $40billion dollars from $34 billion in February 2024, meanwhile the official exchange rate has been over 1700 Naira per U.S dollar in November 2024 but currently at 1600 Naira per U.S dollar; the NDU shows stability since the FX de facto unification in February 2024. However gross revenue collected by the entire federation soared significantly in 2024, the NDU attributing it to factors like: In 2023 the gross revenue collected from federal government agencies (NUPRC,NNPC,FIRS,NCS,FGN,state IGRs) was 20.7 trillion Naira, then 2024 comes a big increase of 37.1 trillion Naira, 79.2% YOY increase. This revenues changes directly impacted Nigeria’s GDP positively as 2023 revenue collections contributed 8.8% while 2024 contributed 13.3% to the GDP with a 4.5% change in the GDP, according to NDU report. Furthermore the NDU stated that consolidated fiscal position improved in 2024, driven by surging revenues, which was mostly seen at the state level due to revenue increase from federal account allocation committee (FAAC), 43.5 percent of gross revenue collected by the federation was sent to state accounts . The fiscal deficit shrank from 5.4% of GDP in 2023 to 3.0% of GDP in 2024, a major improvement which was driven by sharp increase in revenues of the entire Federation, which rose from N16.8 trillion in 2023 (7.2% of GDP) to an estimated N31.9 trillion in 2024 (11.5% of GDP). Mr. Taimur Samad, Acting World Bank Country Director for Nigeria, speaking on the country’s economic development, applauded Nigeria for the impressive work being done on macroeconomic reforms stability highlighting that the country can now focus more on strategic spending on human capital and infrastructure. “Nigeria has made impressive strides to restore macroeconomic stability. With the improvement in the fiscal situation, Nigeria now has a historic opportunity to improve the quantity and quality of development spending; investing more in human capital, social protection, and infrastructure.” He said. Despite macroeconomic growth, challenges persist. World Bank noted in a recent press release that, while Nigeria’s economic indicators are showing signs of improvement, particularly growth, revenue, and fiscal balance; however price pressures remains elevated. While expressing optimism about inflation rate, noting it’s expected to fall, highlighting monetary policy reforms have anchored market rates and helped contained the inflation surge. “Inflation has remained high and sticky but is expected to fall to an annual average of 22.1% in 2025, as a sustained tight stance firmly establishes monetary policy credibility and dampens inflationary expectations.” The press release noted. while highlightening challenges post macroeconomic reforms, world bank’s NDU report shows there have not been full transparency with the premium motor spirit (PMS) subsidy removal. It pointed out that PMS subsidy ended effectively in October 2024, but the revenue gains from the subsidy removal have not been flowing into the federation account. Also it stated that since October 2024 Nigerian National Petroleum Company Limited (NNPCL) has been using the official exchange rate for fiscal revenues, in October 2024 till December 2024 official exchange rate reached 1700 Naira per dollar but NNPCL refused to make changes during those periods and also stopped reporting FX differential losses. However in January 2025 NNPCL began remitting 50% of the revenue gains from PMS subsidy removal to the federation; while using the remaining half to settle past arrears. Compounding the challenges further is Nigeria 2025 national budget which the world bank’s Nigeria development update (NDU) report has joined other financial experts to describe it as “overly ambitious” while stressing the need for its implementation to be carefully monitored and corrections be made if necessary. NDU stated that “overly optimistic revenue projections may cause financing requirements to exceed budgeted amounts, leading to a build up of arrears and raising the risk of renewed recourse to deficit monetization.” NDU emphasized that, the budget revenue assumptions and early data of 2025 appears to be grossly mismatched. Highlighting some key differences in the budget revenue projections and early 2025 data. Oil production 2.1 million barrels per day (mbpd) as projected in the 2025 budget but, Nigeria has only been able to produce 1.6 mbpd in January- march 2025. Further problem associated with the oil revenue for funding of the 2025 budget is the fall in crude oil price, recently Brent crude has fallen below $60 and is currently trading above $65 but the benchmark used for the 2025 budget crude oil sale was $75 per barrel. Following the subsidy removal and macroeconomic reforms that Nigeria has embarked on since 2023, the government has since then rolled out palliatives to help mitigate the impact of the controversial reforms, which includes 25,000 Naira cash assistance to over 60 million vulnerable Nigerians. The NDU report, stated rollout has been slow but implementation are been scaled up, it reported that as of 1st of may 2025, 5.6 million households has received atleast one time payment of 25,000 Naira, with 2.4 million and 1.24 million Nigerians receiving up-to 2-3 times the palliative, upon being biometrically verified. The
Africa development bank approves €26.5 million support for clean energy in Togo
A significant boost for clean energy initiatives across Africa, the Africa development bank (AFDB) has approved €26.5 million to support the construction of a new solar power plant in Togo Africa is actively pursuing clean energy initiatives to increase energy efficiency, reduce emissions and potentially become a net exporter of clean energy across the globe with renewable sources like: solar, wind and hydro power. A lot of communities have embraced solar energy; it’s one of the cheapest sources of electricity in many areas. According to a press release from AFDB the €26.5 million euro will support the development of a 62 megawatt-peak Greenfield solar photovoltaic power plant in Sokodé, Togo. The plant, in Sokodé, in the centre of the country, will supply clean, renewable energy to more than 700,000 people who currently have limited access to electricity. Report from the press release says financing for the project “includes a loan of up to €18.5 million from the African Development Bank and a concessional loan of up to €8 million from the Bank-managed Sustainable Energy Fund for Africa (SEFA). PROPACO, the French development finance agency focused on private sector growth in emerging markets, will provide additional co-financing, positioning the €61 million project as a model of effective public-private collaboration.” Energy capacity, long term plans. According to word bank reports Togo has a population of 9.3 million people; however 59% of the population has access to electricity; with 41% vulnerable to energy crisis. Leading to the country’s national target of achieving 100% electrification by 2030. The target plans to include renewable energies to its energy mix to achieve a 20% target by 2030. From 3megawatt Togo has been on the journey of increasing its clean energy production to 200 megawatt by 2030. However AFDB hints that the financial support for the Sokodé solar project is to help with the country’s agenda for 100% electrification. Highlighting it will move the country away from fossil power which are cost and also causes pollution. “This project is critical for achieving Togo’s target of installing 200 MWp of renewable energy capacity by 2030. It will pave the way for the country’s energy transition away from costly and polluting thermal generation, enhancing energy security and reliability, and accelerating the path to universal access by 2030.” AFDB noted. Mr. Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the AFDB. Expressed that the project portrays Togo’s strong commitment to clean energy, and AFDB support for advancing renewable energy across the continent. “The Sokodé solar project is a landmark achievement that highlights Togo’s strong commitment to the transition to renewable energy” he said. He also noted that the project not only supports Togo’s efforts to access to energy through renewable but also stimulates local economic growth and enhances the country’s energy security and reliability. Solar energy projects across Togo. Reports from ESI-Africa shows: the Blitta solar PV plant has enabled the installation of 51,887 individual solar kits for the benefit of 35,000 rural households and 394 solar water pumps for small farmers. The renewable energy development policy in Togo has also enabled the establishment of mini solar power plants in Bavou (Ogou), Assoukoko (Blitta), Takpapiéni (Oti-Sud) and Koutoum (Bassar) for a total production of 600kWp. “The objective is to considerably boost the production of renewable energies from 3MW to 200MW by 2030, and in turn fight against climate change.” Says the Togo presidency. However, the AFDB press release confirms the Sokodé solar project is developed by French multinational power utility company Électricité de France, the project entails the design, construction, and operating of the Greenfield solar plant and an 11 km transmission line in Sokodé. Once operational, the plant is expected to generate 87 gig-watt-hours of electricity annually, delivering clean, reliable, and affordable power to communities while addressing energy deficits. The project also supports Togo’s M300 energy compact by driving least-cost power generation through competitive bidding and boosting private sector involvement. It aligns with the African Development Bank Group’s “Light Up and Power Africa” goal to advance sustainable, inclusive energy solutions across the continent. NWALI CHIDOZIE MICHEAL