Africa Development bank paper strategy for Nigeria; Capture climate-smart agricultural infrastructure development aligns with long-term development plan
As Africa development bank (AFDB) strives to promote sustainable economic development and social progress in the region; with the aim of growing the continents GDP, which is predicted to grow from 3.2 percent in 2024 to 4.1percent in 2025. By AFDB. The Africa development bank in a press statement has just recently announced the approval of five year- country paper strategy plans to boost economic growth in the Giant of Africa (Nigeria). This recent strategy will help millions of Nigerians access finance, skills, and infrastructure for farming, business growth and a stronger economy. Report says The AFDB five year- country strategy paper (2025-2030) for Nigeria, is committing about $650 million annually to driving economic transformation, build resilience, and foster broad-based prosperity in the country. Under this new strategy the bank will provide $2.95 billion over the first four years, then complemented by an estimated $3.21 billion in co-financing from development partners. According to the AFDB press release the strategy will be focusing on two “key-priorities”: promoting sustainable climate- smart infrastructure to enhance competitiveness and industrial development, and advancing gender and youth-inclusive green growth. Abdul Kamara, Director General of the African Development Bank’s Nigeria Office. While commenting on the strategy said it’s a “transformative partnership” which will strengthen ties between Nigeria and AFDB. He also expressed optimism that a “new level” will be achieved with the partnership. “This strategy takes a transformative partnership between the Bank and Nigeria to a new level.” He said. Improving Climate-smart framework. Mohammed Dahiru aminu an environmental expert and policy manager at methane pollution prevention; while writing in Abuja, expressed his concerns about how environmental changes is negatively impacting every aspect of our lives in Nigeria, he stressed that climate change is responsible for “present-day realities affecting farmers, food production and rural communities”. “I have seen firsthand how environmental change impacts every aspect of our lives In Nigeria, the effects of climate change are not just statistics or predictions for the future. They are a present-day reality affecting farmers, food production and rural communities.” He wrote. He also noted that; to combat the environmental problems which farmers face today 🙁 reduced crop yields, low productivity, floods, reduced harvest, droughts.) Which has caused: food shortages, rising prices and increased poverty in the Nigeria. He then proceeds to call for the need to embrace climate-smart policies as a solution. “To combat these challenges, it is important to embrace climate-smart agriculture”. He added. The AFDB policy stated that; it aims to combat the challenges of climate-smart development in Nigeria and will be investing in key climate-smart infrastructure projects like: climate-friendly, roads, power and water systems. And boost the country’s critical infrastructure gap over the coming years. “The strategy aims to close Nigeria’s critical infrastructure gap – estimated at $2.3 trillion between 2020 and 2043” it stated. However Mr. Abdul Kamara said with AFDB investment in “inclusive agricultural growth” millions of Nigeria will experience prosperity and huge transformation in the agricultural sector. “By investing in sustainable infrastructure and inclusive agricultural growth, we are not only building roads, power systems, and transforming agriculture – we are building pathways to prosperity for millions of Nigerians.” he said. Women, youth inclusiveness and green economy. AFDB press release confirms that million of Nigerian women, youth and small businesses, micro enterprises , medium sized enterprises – together with state government and rural communities will “benefit” from improved access to finance , enhanced supply chains, trainings, and business opportunities. Further-more, AFDB also reveals that it will be working closely with Affirmative Finance Action for Women in Africa (AFAWA). AFAWA, a pan-African initiative created to bridge the $42 billion financing gap facing women in Africa. AFAWA leverages the African Development Bank’s financial instruments to increase lending to women. Following the approval of this strategy Nigerian women entrepreneurs will benefit “targeted support” from AFDB throw AFAWA program. “Women entrepreneurs will receive targeted support under programs like the Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative”. It noted. AFDB through its press release also said this strategy will provide opportunities for youth in Nigeria to gain critical skills that will help end unemployment in the country. “youth will gain critical skills to tackle unemployment.” AFDB noted. Aligning with Nigeria long-term development plans. According to the release, AFDB investments are projected to support Nigeria’s ambition to double the size of its economy to $1 trillion and to create 1,561,000 jobs. However AFDB said this new strategy “ aligns” with Nigeria long-term development plans which include: * Agenda 2050: According to world food and agricultural organization (FOA) This Nigeria Agenda presents the government’s long-term economic transformation blueprint to address the economic and social developmental challenges and transform Nigeria in an upper middle-income country, through a full engagement of all resources, in order to achieve inclusive growth, reduce poverty and unemployment, increase social and economic stability, create a sustainable environment, and reduce global concerns about climate change. * Nigeria’s National Development Plan (NDP). National library of Nigeria explains that the NDP 2021 – 2015, is a medium-term blueprint designed to unlock the country’s potentials in all sectors of the economy for a sustainable, holistic and inclusive national development, developed by the different facet of the Private Sector, Sub-national Government, Civil Society Organization (CSO) and facilitated by the Federal Government of Nigeria. * 2023 Renewed hope Agenda: which the vice president of Nigeria; His Excellency Kashim Shettima has explained as a strategy of President Bola Ahmed Tinubu’s administration in transformative policy thrust, aimed at repositioning Nigeria as a prime global investment destination. He said with the agenda hinged on the core pillars of democracy, development, demographics, and Diaspora engagement, the present moment serves as the opportune time to remind both Nigerians and the global community that Nigeria stands ready to embrace the future and conduct business. NWALI CHIDOZIE MICHAEL
Wale Edun leads FG meeting with HDMI concessionaires to unlock N1.5 trillion road infrastructure investment
The Honourable Minister of Finance and the coordinating minister of the economy earlier today led a a meeting with concessionaires under the Highway Development and Initiative (HDMI) of the federal government to unlock road infrastructure investments estimated at over N1.5 trillion. The meeting was held in the context of the government’s reforms and drive towards expanding private sector investment in Nigeria. Though most of the concession agreements were concluded between 2021 and 2022, it is only the concessionaire of the Benin – Asaba road that have moved to site and started work, after the flagging off ceremony last month. This meeting was therefore to unscrew remaining nuts in the other concessions so the concessionaires can move to sites. The Minister, speaking at the start of the meeting, shared that “within the context of current macroeconomic stability, the inputs, participation, and expertise of the private sector comes to the fore.” The Minister recalled that at the recent IMF / World Bank Spring Meeting, the administration was commended and recognised by both the Bretton Wood institutions and investors on macroeconomic stability. However, the government is now focused economic growth, jobs and improving the standard of living of Nigerians.” The Minister argued that “having achieved resilience and minimized the price pressures on goods and services, and exchange rates, the economic growth of 3.46 percent, though encouraging is not enough to lift millions out of poverty. The government is committed to growing at a faster rate to lift Nigerians out of poverty in millions.” The Minister also spoke about the recent lower oil prices. He said, though Nigeria is not directly affected by the proposed tariff measures of the US government, we are indirectly affected by the effects on crude oil prices. Against this background and as part of the government’s economic strategy of a private sector led growth, HDMI is critical. For all the concessionaires present, including Kola Karim, the Chairman of Shoreline, and the concessioner of the Benin – Asaba road, their major request at the meeting was for the addendum to the agreements reached to be signed by the government. Other knotty issues include dealing with existing contractual issues on the roads, and agreement on phases of each road concession. Wale Edun stressed that it is important for the government and the concessioners to reach agreement on the roads to increase productivity by reducing the journey times on the road. For instance, the Benin – Asaba road, when completed, will reduce the journey time by 75 percent. Eight other concessions will have the same treatment and accommodation covering an estimated 1,000 klm under the regulatory supervision of the Infrastructure Concession Regulatory Commission (ICRC). The Minister of Works, Senator David Umahi joined the meeting from Lagos where he is with some other potential investors on road infrastructure. He welcomed additional interest under the HDMI, with HDMI 2 set for launch. He requested that the investors tidy up arrangements, including guarantees and proof of funds “so that the government is sure that there is immediate mobilization to site after the addendum is signed.” The Minister for budget and planning, Senator Abubakar Atiku Bagudu says “this is no doubt an important milestone. The government is determined to support the private sector.” The Director General of ICRC, Dr. Jobson Oseodion Ewalefoh, says the agency is “here to speak to investors committed to seeing these through as demonstrated by the Benin – Asaba road.” He added, “government is about public trust, and this is to ensure that the private sector participants have the required capacity, expertise, and finance.” To all the private sector participants at the meeting, their concern is to ensure that they have the right documentation that ensures that the agreements are enforceable. They shared that it has taken long for them to get here and appreciates Edun’s role in trying to get the agreements ready so they can mobilise to sites. The HDMI, established in 2021, and currently in phase 1 is designed for the concession of major highways in Nigeria for private sector concession, mostly over a 25-year period. The concessioners will rebuild the roads, collect tolls, and return to the federal after the concession period. The roads already concession include the Benin – Asaba, for which work has commenced, Abuja – Lokoja, Onitsha – Owerri – Aba, Sagamu – Benin, Abuja – Keffi – Akwanga, and Kano – Shuari.
PAN-AFRICAN TRADE: CBN ISSUES DIRECTIVE ON PAPSS TRANSACTION IN NIGERIA
As intra-African trade continues to record significant growth within the region, with Africa Continental free trade area (AFCFTA) and African Union (AU) playing major role in strengthening pan-African trade, and potentially increasing intra-Africa trade by 33% while aiming to create a large free trade area in Africa.One of the significant key-aspect of intra-Africa trade growth; is the unveiling of pan-African payment system PAPSS. PAPSS a payment system that supports cross-border retail payment in local currency, enabling the efficient flow of money securely across African borders, while minimizing risk and contributing to financial integration across the region. launched in 2022 by the African union (AU) and African export-import bank(afreximbank). The use of third-party currencies (USD,EURO) in trade dealings within Africa is increasingly expensive; financial experts are saying the use of third-party currencies for trade payments costs the region about $5billion yearly in intra-regional trade transactions fee; experts are describing this payment platform PAPSS as an alternative. Highlighting its supports for cross border retail payment in local currency, thereby eliminating any need for third-party currencies like the United States dollar and euro. Prof. Benedict Oramah, president of afremixbank told Arise tv in an interview that; foreign currency.(FX) is becoming scarce and there has been so many troubles with accruing it for payments of goods and services across Africa, adding that it has caused a “diversion of trade”. “In an age where foreign currency had increasingly become scarce you also have caused a diversion of trade, Because; to buy something from your neighbor you have to go and try and earn another currency somewhere else to be able to get the currency to pay for it” he said. Prof. Benedict is championing for the domestication of payment in Africa to avoid going through different channels to get foreign currencies to pay for trade within the region. “I would say this is not necessary, we want to domesticate all the inter-African payments” he added. However fifteen pan-African countries have been enrolled to PAPSS with their central banks incharge of PAPSS regulations in their respective countries. Namely: bank of Ghana, central bank of Nigeria, central bank of Liberia, central bank of the republic of Guinea, bank of Sierra Leone, reserve bank of Zimbabwe, central bank of Djibouti, bank of Zambia, central bank of Kenya, central bank of Gambia, central bank of Tunisia, central bank of Egypt, central bank of Comoros, reserve bank of Malawi, National bank of Rwanda. Recently, the central bank of Nigeria (CBN) in its ongoing commitments; to fostering seamless intra-African trade, driving financial inclusion, and operational efficiency for Nigerians engaging in cross-border payments within Africa has announced new guidelines for PAPSS transaction in the country. According to a circular referenced: TED/FEM/PUB/FPC/001/006, from the CBN trade and exchange department. There have been some significant reviews for document requirement for PAPSS Transaction in Nigeria. 1. The use of basic documentation, know your customers (KYC) and anti-money laundry (AML), provided by the customers to the authorized dealer bank for individual transaction below USD 2000 and corporate transactions below USD5000 or its equivalent monthly is now allowable. 2. For transactions above USD2000 and USD5000 for individual and corporate respectively, all Documentation requirements stipulated in the CBN foreign exchange manual and extant circulars shall apply. 3. Applicants shall be responsible for ensuring that regulatory documents are made available, to facilitate the clearance of goods (as may be requested by the relevant government agencies). 4. ADBs are allowed to source for foreign exchange for the settlement of PAPSS transaction through the Nigerian foreign exchange market (without recourse to the CBN). 5. All exports proceeds repatriated under PAPSS shall be subject to certification by the respective processing banks. Optimism for businesses. Financial experts and institutions said the use of PAPSS within Africa will reduce business dependant on third-party currencies and reduce transactional cost which in turn will boost business across the region. However, following the release of the new guidelines for PAPSS transaction, CBN has made it easy for Nigerian business owners to participate in intra-African trade and facilitate payments with PAPSS; by-passing strict regulations. This new guidelines eliminates the stress businesses go through while trying to provide documents stipulated to CBN foreign exchange manuals. Trades payment within the region can now be facilitated quickly with customer basic valid Identification documents. Press release from the apex bank says customer will be allowed to use (KYC) and (AML) documents for transactions below $2000 for private individuals\business; $5000 for corporate business transactions. However customers with large trade values above $2000 appropriated for private individuals and $5000 corporate businesses are subjected to strict regulations by CBN. CBN says traders with larger trade volume will face stricter restrictions while facilitating payment with PAPSS in the country. “for transactions above the threshold all documentation as stipulated in the CBN foreign exchange manual remains mandatory”. CBN noted. Additionally, to ensure the smooth clearance of goods across Nigeria’s borders the CBN said regulatory documents will be made available by applicants . This will ensure that the necessary papers are in place for smooth dealings. In another significant change, that’s good for business; CBN has allowed authorized dealer banks (ADBs) to source foreign exchange for the settlement of PAPSS transaction directly through the Nigerian foreign exchange market “without recourse to the CBN”. CBN noted that this move is to help enhance the flexibility of transactions, reducing the heavy reliance on the central bank. “Authorized dealer banks may now source foreign exchange for PAPSS settlement through the Nigerian foreign exchange market (without recourse to the CBN)”. CBN report noted. Trade volume concerns. Modupe Diyaola, a fin-tech leader and CEO of meCash told Business Day about her trade volume concerns, highlighting that increase in trade volume will bring down reduction in the price of transaction fee, which will drive efficiency for business owner within the continent. But the CBN guideline only gave easy room for minimum threshold of $2000 for private business and $5000 for corporate business. “I believe transaction fee will reduce overtime. Once volume are established
AI: Nigeria’s first Indigenous AI unveiled
The recent growth of artificial intelligence (AI) across the globe and Africa in particular has captured the interest of entrepreneurs, policymakers and tech developers around the continent. This new technology has the potential to transform the society, drive economic growth and easy access to information. United nations development program (UNPD) report, shows optimism about AI. Saying it will contribute significant growth to Africa economy if Africa enterprises “could capture” the endless opportunities in AI and taking it global. “$1.5 trillion will be injected to Africa’s economy which represents 50% of Africa’s 2024 GDP, if African businesses could capture 10% of the global AI Market.” UNDP. However Following the wave of AI across Africa; Nigeria the giant of Africa is not left out, recently an indigenous tech company ‘bildup’ located in Enugu state, led by Chibuike Aguene, on the 27th of august unveils the nations first indigenous AI technology software BILDUP. Bildup an AI-powered learning companion designed to support students, parents, and teachers, helps learners master subjects at their own pace, while giving parents and educators real-time insights into progress and performance. Both at home or in school, Bildup AI makes learning more engaging, personalized, and effective. Bildup founder at the launching of the AI software said: The development was achieved through collaborations with Nigerian engineers, educational experts, and government partners with the purpose of creating home-grown solutions for education and digital learning. “by Nigerians, for Nigerians,” Mr chibuike said to attendee of the event. Harnessing AI for educationThe recent software Bildup AI creates a unique learning path for each student based on their curriculum, performance, and learning style. As the student interacts with Bildup AI – askingquestions, completing tasks, or reviewing lessons the AI continuously adjusts the content and approach to ensure the learning experience stays relevant, challenging, and supportive. Vivian a high school student says her confidence has been over the moon since she started using the AI for learning mathematics, saying she can now “tackle maths problems” “With Bildup AI guided practice and engaged learning, my maths understanding improved so much. Now i feel confident and can tackle maths problems at my grade level!” She said. Local Ai: A new frontierThe federal ministry of communications, innovation and digital economy recently outlined a National AI strategy, with the aim of positioning Nigeria as a giant in Africa technology revolution. Dr. Bosun Tijani, the Minister of Communications, Innovation and Digital Economy says Nigeria model involves collaborating with local and international experts to develop technologies that will solve the nation direct needs and challenges. “The National AI Strategy was developed through a collaborative process involving government, academia, and industry. Nigeria’s approach to AI strategy development is unique and has garnered international recognition.The country’s model involves identifying and engaging with Nigerian researchers and experts in AI, both locally and internationally, to develop a comprehensive strategy that addresses the nation’s specific needs and challenges,” he said. Reports from the national Ai strategy suggests that locally designed AI solutions adapts to local realities are by far equipped to solving local challenges than externally enveloped technologies created for an entirely different people. Aguene founder of bildup AI described the AI startup as a breakthrough, designed to redefine education in Nigeria and Africa at large. “This is the first African indigenous AI technology” he said. Potential impact on educationHowever,students from local schools tested the software, experiencing tailored lessons in mathematics, science, and languages during the launching. Akachukwu a collage student happily described the software as a “study buddy” highlighting its accuracy and simplicity with its “step by step” breakdown of Mathematics equations and ability to provide detailed explanations for each answer. “It’s like talking to somebody of your age group, but has better understanding of what you want to learn” she said. However she’s excited about the high insight the software provides and how it helps her achieve more understanding about any specific mathematical problems. “Basically the entire user interface is very nice it’s very supportive, colorful and very nice for assimilation. She added. Future advancementFrom mastering concepts and acing tests to building future-ready skills, Bildup AI makes learning smarter, faster, and fun. Bildup a pioneer in leveraging AI integration in transforming education in Africa, empowering learners to overcome limitations and unlock their full potential. creates a unique learning path for each student based on their curriculum, performance, and learning style. As the student interacts with Bildup AI – asking questions, completing tasks, or reviewing lessons – the AI continuously adjusts the content and approach to ensure the learning experience stays relevant, challenging, and supportive. Officials from the ministry of communications, innovation and digital economy praised the innovation said it will offer “solutions” to many “home-grown” challenges in educational sectors across the Africa. “a model for home-grown solutions to Africa’s educational challenges”. They noted. Also Lacey a high school student said the innovation has made her study easier highlighting that the AI answers any question with clear and concise explanations. I don’t need to browse through lots of textbooks to find answers, now i can ask Bildup study buddy anything, and it explains things in a way i truly understand” she said. Nwali Chidozie Michael
Federal government to prioritise resource allocation in the face of low oil prices, target 7% growth
The Honourable Minister for Finance and the coordinating minister for the economy said in Washington yesterday that the federal government will pursue diversification of its revenues and adopt greater prudent resource allocation measures to mitigate the impact of low oil prices should it continue. The Minister spoke at a meeting with foreign investor that include representatives of JP Morgan, arguing that Nigeria is better positioned to deal with current global economic uncertainties on the back of the government recent reforms. The Minister led the government delegation to the IMF / World Bank Spring Meeting that include the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso and the Director General of the Debt Management Office (DMO), Ms. Patience Oniha. The Minister outlined the government’s strategy to cope with lower oil prices, including prioritizing government expenditure, expanding non-oil exports, and optimising assets through public-private partnerships, says the government’s growth target is 7 percent, following the 3.8 percent recorded in 2024, the highest growth rate since 2014. Nigeria’s brent crude oil traded for US $68 per barrel yesterday compared to the US $75 price benchmark for used for the 2025 budget. Oil price averaged US $80, US $77, and US $72 in January, February, and March this year. The fall in oil prices have followed recent uncertainty in the direction of the global economy and trade as demand for oil was expected to stagnate in the coming months. In relation to outlook, the US Energy Information Administration expects oil prices to average US $68 this year. Oil revenues play a huge role in the Nigerian economy and there is real concern about the impact of the fall on both government revenues and the economy. In 2022, oil revenue contributed about 56 percent of the total revenue collected by the government, account for almost 90 percent of Nigeria’s foreign currency earnings. Following the recent decline in oil prices, Naira has depreciated against the US $ by 4.3 percent, from N1,537 to N1,604. The Minister will seek to avoid grave policy errors of the past when federal government response to declining oil prices and revenues was dramatic increases in deficits, especially from the Central Bank of Nigeria, exacerbating inflation and the Naira’s weakness. Instead, the Minister emphasised that the priority of the government will be to ensure that government expenditure continues to meet the priorities of Nigerians, especially on critical infrastructure such as roads and power, and food security. “Nigeria is diversifying its economy away from dependence on oil prices, and the extensive work on tax reforms is almost concluded, * Edun stated. *We will do all we can to create an enabling business environment, provide incentives, and implement structural reforms to attract private sector investment, drive growth, and generate revenue,* the Minister added. With a focus on prudent resource allocation and diversification, Nigeria is poised to navigate the challenges of low oil prices and achieve sustainable economic growth.
Wale Edun pushes Nigeria’s reform agenda at IMF / World Bank Spring Meeting amidst US tariff uncertainty
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun is currently spearheading the country’s delegation to the 2025 IMF-World Bank Spring Meetings in Washington, D.C., driving discussions on economic reform, international partnerships, and financial sustainability amidst US tariff uncertainty. On the back of the uncertainty that follows the US flip flop on tariffs, the IMF had reported in its Spring World Economic Outlook a “slowdown in global growth as downside risks intensify,” projecting global growth of 3.3 percent for the year. Notwithstanding, the Honourable Minister’s schedule for the week underscores Nigeria’s focus on its continuous strategic push for economic reform, international partnership, and financial sustainability. Accordingly, the minister’s key engagements include bilateral meetings with senior officials from the IMF, World Bank, and International Finance Corporation (IFC), as well as participation in roundtables focused on climate finance, energy transition, and debt restructuring. In its outlook, the IMF called for “keen policy focus on balancing tradeoffs between inflation and real activity, rebuilding buffers, and lifting medium growth prospect through stepped up structural reforms as well stronger multilateral rules and cooperation.” Though there is huge room for upside, this ties in with Nigeria’s current macroeconomic focus. For instance, Nigeria recorded inflation rate of 24. 23 percent in March 2025, from 23.18 percent in February, the slightest increase in inflation since June 2023. Nigeria has also been rebuilding its foreign reserves, now at US $38 billion compared to US $33.2 billion at the end of 2023. According to one of Nigeria’s Bank CEOs who do not want to be quoted, “In the last 20 months, the Central Bank of Nigeria, under the leadership of Yemi Cardoso, as part of Nigeria’s broad economic strategy has focused on rebuilding reserves, rebuild confidence, and repay obligations.” It also ties in with the latest rating by Fitch, upgrading Nigeria’s long term foreign currency issuer default rating to ‘B’, from ‘B-‘, signifying stable outlook due to the ongoing economic reforms of the government. Following the significant progress made in stabilising Nigeria’s economy over the past year, the government is now targeting rapid, inclusive growth with a clear emphasis on job creation. Edun is using the global platform to advocate for Nigeria’s renewed economic agenda — centred on fiscal consolidation, expanding social protection, and unlocking private sector investment across key sectors. In his capacity as Coordinating Minister of the Economy, Edun continues to champion reforms that will deliver long-term economic resilience aimed at lifting millions of Nigerians out of poverty, while also ensuring that development is both equitable and sustainable. The Nigerian delegation includes senior officials from the Ministry of Finance, Budget and National Planning, the Central Bank of Nigeria,and Nigeria’s multilateral finance agencies. The Spring Meetings, which concludes this weekend, provides Nigeria’s fiscal and monetary policy leaders a timely platform for strategic discussions and partnerships that will unlock the country’s growth potential with dialogue expected to yield significant outcomes that will shape Nigeria’s economic trajectory and inform future policy directions.
The Nigerian Paper industry continues decline amidst strong import competition
The Nigerian paper industry meets over 90% of its white‑paper demand through imports, costing an estimated US $5 billion annually and draining the country’s foreign exchange. Despite having modern facilities such as NIXIN Paper Mill, local producers say they operate below capacity due to policy inconsistencies and an unfavourable business environment. Current tariff structures impose a 25% duty on imported paper while exempting educational materials, skewing competitiveness in favour of foreign suppliers, which they argue its insufficient. However, some industry experts argue that the country cannot “tariff” itself into manufacturing competitiveness. Rather the industry should look into other factors that can drive productivity and growth. The underutilisation of privatised mills is driven by capital‐intensive machinery, lack of long‑fibre pulp resources, and power and infrastructure deficits. Import bills reached ₦412 billion in 2022 alone and over ₦1.63 trillion in the past five years, exacerbating job losses and economic vulnerabilities. Comparatively, China’s pulp and paper industry thrives on clear investment incentives and sector‑specific policies, producing 283.9 million tonnes in 2022 under a supportive regulatory framework. To revive Nigeria’s paper sector, coordinated policy reforms, harmonised tariffs, investment incentives, public‑private partnerships, and raw‑material diversification—are essential to create jobs, conserve forex, and safeguard the environment. Nigeria’s domestic paper‐production capacity falls drastically short of demand, leading to import dependence for over 90% of white papers used in education, printing, and publishing. Modern facilities like the NIXIN Paper Mill remain underutilised, operating well below their technical capacity due to policy gaps and infrastructural constraints. This imbalance underpins the sector’s decline and necessitates urgent analysis of the policy, economic, and structural barriers to local paper manufacturing. Industry stakeholders frequently cite conflicting government directives that undermine investor confidence and long‑term planning. For example, duty waivers on imported educational materials clash with high tariffs on general paper imports, making local production economically untenable. Experts warn that without a coherent industrial policy, private mills will continue to struggle with unpredictable cost structures and regulatory burdens. Imported paper attracts a 25% import duty, while educational books and notebooks often enter duty‑free, creating a loophole exploited by importers and disincentivising local manufacturers. This misalignment skews market competition, flooding the market with cheaper foreign paper and suppressing domestic producers’ ability to achieve economies of scale. Nigeria spent an estimated US $5 billion on paper imports in 2022, translating to ₦412 billion in import value, with broader allied products pushing cumulative import bills to over ₦1.63 trillion in the last five years. These outflows strain foreign reserves and divert capital from critical investments. The lack of competitive local production has precipitated mill closures and underemployment in allied sectors, with experts noting significant job losses across manufacturing, logistics, and forestry inputs. The macro‑economic fallout includes reduced tax revenues and diminished industrial linkages. Unchecked importation and paper consumption carry environmental costs, including higher carbon footprints from long‑distance shipping and increased waste generation. Research advocates for leveraging recycled wastepaper as an alternative raw material to reduce pollution and conserve forestry resources. China’s pulp and paper sector produced 283.91 million tonnes in 2022 and benefits from a clear Catalogue of Encouraged Industries that actively invites foreign investment in pulp, paper, and allied sub‑sectors . Incentives such as tax breaks, subsidised financing, and streamlined land‑use policies have enabled China to build resilient supply chains and achieve global leadership despite limited domestic forestry resources. Experts have therefore recommended steps to revive the industry, including tariff harmonisation by aligning import duties to level the playing field—phasing out zero‑duty exemptions and standardising paper tariffs to protect local producers. Also, introduce tax holidays, subsidised loans, and guaranteed off‑take agreements for new and existing paper‑mill projects, modelled on China’s encouraged‑industry framework. In addition, accelerate research and development into using wastepaper and agricultural residues as pulp substitutes, reducing dependence on imported long‑fibre pulp and engaging the RMDC’s programmes which could save up to ₦500 billion in forex annually, establish industrial clusters with shared power, water, and logistics infrastructure to lower operational costs and improve economies of scale. Finally, constitute a multi‑stakeholder task force to review and synchronise all policies affecting the paper value chain, ensuring consistent implementation across ministries. Reviving Nigeria’s paper industry demands more than sporadic interventions—it requires a cohesive strategy integrating policy reform, fiscal incentives, and collaborative investment. By learning from successful models like China’s and harnessing domestic resources innovatively, Nigeria can rebuild a self‑sustaining paper manufacturing sector that creates jobs, conserves foreign exchange, and promotes environmental stewardship.
Nigeria in the Global Energy Transition Era – Prof. Barth Nnaji
The 2025 Bullion Lecture of the Centre for Financial Journalism by Professor Bart Nnaji, CON, NNOM, FAS, FAEng, Chairman and CEO Geometric Power Group at the Civic Centre, Victoria Island, Lagos 10 April 2025. Recognitions and greetings. I would like to thank the Chief Executive Officer of Centre for Financial Journalism, Dr. Ray Echebiri, for inviting me to deliver the 2025 edition of The Bullion Lecture. Ray appreciates the immense value of continuous learning and development. Continuous learning results in continuous improvement. Constant improvement is the driver of personal, organizational, and societal progress. Ray, who graduated top of his Economics class at the University of Calabar had made a name in the early 1990s as a leading financial journalist with the Champion Newspapers. But he wasn’t carried away by the glamour of fame; he headed for the United Kingdom where he studied Economics. Even as a successful publisher, he returned to school to study for a doctorate. Knowledge acquisition is the way to go. Long before technology made its way to the centre of how we now live and work, Peter Drucker, the all-time management guru, had written about the knowledge economy. Decades later, the leading global firms are the knowledge-driven ones like Apple, Google, Nvidia, Huawei, Microsoft, Amazon, Tesla, etc; and the leading nations are the ones that invest heavily in knowledge, research, and skills. With the rise of AI the imperative of learning, unlearning, reskilling, and upgrading cannot be overemphasized. The topic of this address is Nigeria in an Era of Energy Industry in Transition. What is the motivation for discussing energy transition? It is clear to everyone in the world that our dear Earth has been getting hotter and hotter. Here in Nigeria, the climate gets so hot between January and March that you sometimes wonder if your cooling systems like the ACs are working. Scientists attribute the increasingly hot atmosphere to climate change. They regard the change as an existential threat. The change is mostly from fossil fuels, namely, coal, oil, and gas. To check the impending Armageddon, a global environmental summit was held in Paris in 2015 where several countries, including Nigeria, signed an accord to reduce global warming to 1.5 degrees centigrade or less of the pre-industrial era; 194 countries plus the European Union have now signed the treaty. Nigeria has also committed to achieving net zero by 2060, that is, the period when our carbon emissions will not be more than our carbon dioxide removal from the atmosphere through such mitigation strategies as forestation. Gabon, Comoros, Panama, and Madagascar are among the countries that have already achieved net zero. Nigeria has launched the Energy Transition Plan to help achieve the net zero target. The energy industry is among the largest contributors to climate change, so it has come under intense pressure in the effort to check climate change. The United Kingdom, Sweden, Slovakia, and Portugal are among the European countries that have decommissioned their coal plants, the world’s greatest environmental polluters. The United States now generates only 19% of its electricity from coal, a long leap from the period such plants used to account for 50% of its electricity. It has to be noted that the rapid decommissioning of coal plants in the United States is not a result of environmental concerns, but rather a result of business and economic considerations. It is now cheaper to build and generate power from gas-fired plants than from the fleet of coal fired power plants which are now aging and, therefore, more expensive to maintain. While the campaign for the replacement of fossil fuels with renewable energy and other forms of technology considered environmentally better has been successful regarding energy from coal, the same thing cannot be said about oil and gas. The reason is not far-fetched. The campaign is sometimes not realistic in some areas. Patrick Pouyanne, the transformative global CEO and chairman of TotalEnergies, which is the most environmentally conscious of all international oil majors, has been arguing that the campaign is being rushed. In an in-depth interview published in McKinsey Quarterly on February 20, 2025, Pouyanne cited the example of the maritime sector where pollution would have been reduced by 20% if the liquefied natural gas (LNG) had earlier been allowed to replace oil rather than the energetic call for a ban on all fossil fuels. We all saw the unrealistic call for the ban at the UN Conference of Parties (COP) 28 in Dubai in 2023 and at COP 29 in Azerbaijan in 2024. But the COP organizers and participants were realistic and wise enough to accept that what the world needs is a fair and just energy transition rather than an outright ban on fossil fuels when there are no sufficient replacements yet. If the call had been heeded, it would have been unfair to most developing nations. Most of the global fossil fuels are deposited in developing countries. It is difficult to persuade a poor country like Bangladesh not to build new coal plants when Japan, for instance, still uses coal plants. Poor countries don’t have the financial resources, the technology, and enough people with the skill set to transition immediately to clean energy. As it is often said, the developing countries should be allowed to breathe. Developed nations used coal, the unparalleled polluter, to industrialize and, in the process, created the global warming crisis. It may be argued that by agreeing at COP 29 last November in Azerbaijan to increase its annual financial assistance to developing countries from $100 billion to $300 billion annually to cope with the severe challenges of adjusting to a new era of green energy, the developed nations are beginning to acknowledge their tremendous culpability in the profound environmental crisis. We are all victims of the consequences of climate change, no exception. Loss of seashores, ocean rise, heatwaves, desertification, gully erosion, etc, have been increasing in recent years. We all are witnesses to the annual wildfires in California. The most recent which took place
Interbank Rate Hits a Five-Year High Amid CBN Liquidity Tightening: A Historical Perspective
In a decisive shift that underscores the Central Bank of Nigeria’s renewed commitment to curbing excess liquidity, the country’s interbank rates have surged to levels not witnessed in the past five years. Recent reports indicate that the current rate has escalated dramatically, marking a notable departure from the more subdued levels observed just months ago. Earlier in the year, some estimates pointed to interbank lending rates as low as 4.40% in January 2025. However, with the CBN intensifying its liquidity tightening measures, more recent data suggest that rates have now soared to figures approaching 28.58%. This significant uptick reflects the central bank’s strategy to manage liquidity pressures amid inflationary challenges and persistent currency instability. A historical review of Nigeria’s monetary policy further accentuates the current situation. Data compiled by economic research platforms reveal that Nigeria’s policy rate once hit a record low of 6.00% per annum in August 2010. Since then, the rate has experienced considerable volatility, fluctuating as the central bank navigated a range of economic pressures. From December 2006 to February 2025, the average policy rate hovered around 12.00% per annum, punctuated by phases of both easing and tightening as policymakers sought to strike a balance between growth support and inflation control. The recent surge in interbank rates can be largely attributed to the CBN’s deliberate strategy to absorb excess liquidity from the banking system. By constraining the amount of readily available capital, the central bank aims to temper inflation and bolster the stability of the naira. Although these measures have inevitably led to increased borrowing costs for financial institutions, they are viewed as a necessary corrective step in ensuring long-term economic stability. Market analysts note that while past episodes of rate hikes have sometimes preceded periods of enhanced macroeconomic stability, they have also occasionally led to short-term challenges in credit availability and business investment. The current spike is particularly striking when compared with the lower levels of the recent past, underscoring the intensity of the CBN’s current tightening stance. Reflecting on past monetary policies, Nigeria’s journey has been one of careful calibration between stimulating economic growth and containing inflationary pressures. The historically low rates of 6.00% in 2010 were indicative of a period characterized by relatively accommodative monetary conditions. In contrast, successive tightening measures were introduced to counteract rising inflation and adverse external pressures. Today’s five-year high in the interbank rate serves as a stark reminder of the dynamic interplay between monetary policy and market confidence in Nigeria’s financial landscape. Looking forward, as the CBN continues to monitor domestic and global economic developments, further adjustments in policy rates may be on the horizon. Stakeholders across the financial spectrum remain alert to the potential ripple effects on lending, consumer spending, and overall economic growth, all of which will be critical in shaping Nigeria’s economic future.
Nigeria’s New Investment Law: A Threat to Privacy or a Necessary Regulatory Tool?
Nigeria’s new investment law grants the Securities and Exchange Commission (SEC) the authority to request user data from telecommunications companies as part of its regulatory oversight. The law, which aligns with the government’s efforts to strengthen financial transparency and combat illicit activities in the investment sector, empowers the SEC to obtain call records, messages, and other telecom-related data when investigating securities violations. The enactment of Nigeria’s investment law raises significant concerns about privacy, regulatory overreach, and potential abuse. While governments worldwide access telecom records for law enforcement and national security purposes, Nigeria’s new framework lacks the judicial oversight seen in more established democracies, making it vulnerable to misuse. This move is potentially a part of a broader pattern. Nigeria has a history of leveraging telecom data in ways that threaten personal freedoms, often without proper accountability. The move also raises questions about its alignment with global best practices and the potential for violations of citizens’ constitutional rights. Nigeria’s use of telecom data for surveillance has been a recurring issue. In 2018, journalist Samuel Ogundipe was arrested after security agencies accessed his call records without a warrant, tracking his location and detaining him over a report he published. This was not an isolated incident. Law enforcement agencies have repeatedly used telecom data to monitor critics, activists, and opposition figures, often bypassing legal safeguards. Reports have also emerged that the Defence Intelligence Agency (DIA) acquired equipment capable of intercepting calls and text messages, further fueling concerns about unauthorized surveillance. This raises critical questions about whether regulatory bodies like the SEC could extend their reach beyond investment-related investigations into broader, unchecked data access. Notably, many countries allow government agencies to access phone records, but they do so under strict legal conditions. In the United States, the USA PATRIOT Act initially enabled the mass collection of telecom data, but after the Snowden revelations in 2013, reforms were introduced through the USA FREEDOM Act. Now, U.S. agencies must obtain a court order to access specific phone records, and bulk data collection by the government has been curtailed. The United Kingdom’s Investigatory Powers Act (IPA) 2016, known as the “Snooper’s Charter,” grants intelligence agencies access to telecom data but includes judicial and ministerial oversight. Despite these safeguards, the law has been challenged in court, with rulings emphasizing that indiscriminate data collection violates privacy rights. The European Union, through its General Data Protection Regulation (GDPR), places heavy restrictions on government access to personal data, including telecom records. Authorities must prove proportionality and necessity before requesting such information. Even in countries with metadata retention laws, strict privacy safeguards are in place to prevent abuse. On the other end of the spectrum, China and Russia operate under laws that grant broad, warrantless access to telecom data. China’s Cybersecurity Law and Russia’s Yarovaya Law require telecom companies to store call records, texts, and even internet browsing data for long periods, with little to no independent oversight. Critics argue that these laws enable state surveillance and suppress dissent. Nigeria’s new investment law appears to align more closely with the Chinese and Russian model rather than the legal frameworks of the U.S., U.K., or E.U. The most concerning aspect is the absence of clear judicial oversight. Unlike in the U.S. or U.K., where a court order is required to access telecom records, Nigeria’s SEC may obtain user data without a well-defined legal check. This potentially raises several critical questions: •Who within the SEC has the authority to request telecom data? •What independent oversight mechanisms exist to prevent misuse? •Are there penalties for unauthorized or excessive data collection? •Will affected individuals be notified if their data is accessed? In a country where security agencies have previously misused telecom data to track journalists and political opponents, the lack of transparency in this new law poses a serious risk. The Nigerian Communications Act of 2003 already allows service providers to assist authorities in preventing crime, but it has been criticized for enabling warrantless data collection. The Cybercrimes (Prohibition, Prevention, Etc.) Act of 2015 similarly mandates telecom companies to retain subscriber information for two years, allowing law enforcement access upon request—yet it fails to outline clear safeguards against abuse. While regulatory oversight is necessary for ensuring a stable investment climate, unchecked access to telecom data could erode public trust and discourage investment – the very outcome this law seeks to prevent. To strike a balance between regulatory needs and individual privacy, Nigeria must: 1.Establish transparent guidelines that define the scope and limits of data access by regulatory bodies. 2.Implement judicial review mechanisms, ensuring that all requests for telecom data are subject to legal scrutiny. 3.Introduce accountability measures that penalize misuse of telecom data by government agencies. 4.Align its policies with global best practices to prevent potential human rights violations. Nigeria’s new investment law represents a significant shift in regulatory power, but without the necessary checks and balances, it risks becoming a tool for surveillance rather than economic oversight. If the government is serious about fostering investor confidence, it must ensure that its regulatory actions do not infringe on citizens’ rights. Otherwise, Nigeria may find itself on a path where privacy is compromised under the guise of economic progress.