Economy

An Assessment of NNPC Remittances to the Federation

By Lateefat AbdulganiyuPosted on October 15, 2025Posted in EconomyTagged Federation, Nigeria, NNPC, Reserves3 Comments

The recent rise in NNPC remittances marks a positive development for Nigeria’s revenue profile. With payments made in U.S. dollars, these inflows have also supported growth in foreign exchange reserves. FX reserves increased from US$37.9 billion at the end of April to more than US$42 billion at the end of September. This increase has also supported positive domestic and foreign sentiment, with the net impact being an appreciation of the currency to below NGN1,500/USD since 15 September.

Nigeria Eurobonds: Short-Dated Opportunity Amid Structural Recalibration

By Peter OmotosoPosted on August 21, 2025Posted in Business & Finance, EconomyTagged Eurobond, Fitch, NigeriaNo Comments

Following the recent wave of reform-led sentiment upgrades and positive outlook revisions on Nigeria’s economy by leading global institutions and credit rating agencies, Nigerian Eurobonds have seen a notable rebound in investor interest. This renewed momentum is particularly visible on the short end of the curve, where market participants are finding favorable entry points supported […]

Navigating Tax and Regulatory Hurdles in Nigeria’s Fintech Sector

By Dolapo AterePosted on October 30, 2023Posted in EconomyTagged cbn, Crypto, Fintech, Nigeria, Payments, taxNo Comments

The rapid growth and innovation within the Nigerian Fintech industry have transformed the financial landscape and presented unique and complex tax challenges. As Fintech companies continue to disrupt traditional financial services and expand their operations, navigating the evolving taxation landscape has become critical. The growth and competition within the payment gateway industry, as exemplified by companies like Flutterwave, Paystack, Remita, Interswitch, and others, are truly remarkable to witness. As reported by the Central Bank of Nigeria (CBN), E-payment transactions in 2022 reached an impressive volume of 22 billion. At the same time, data from the Nigeria Inter-Bank Settlement Systems (NIBSS) shows that electronic transactions amounting to ₦38.9 trillion were conducted through the NIBSS Instant Payment platform (NIP) as of November 2022 (+50.2% vs November 2021: ₦25.9 trillion). This is a testament to the robust expansion of the Fintech sector in Nigeria, attracting policymakers in terms of supporting their growth and boosting tax collections from the sector. We will delve into the problems and obstacles at hand, while also exploring potential solutions for the way forward.

Q4-2022 sees Nigeria’s External Position Improve with a Return to Surplus

By Rachael OlaiyaPosted on September 5, 2023Posted in EconomyTagged Crude Oil, Current Account, exports, External Position, imports, Nigeria, Trade1 Comment

In Q4-2022, Nigeria’s external position improved, as the current account returned to a surplus position, primarily propelled by a higher trade balance surplus and reduced shortfalls in the services and primary income accounts. Specifically, the current account balance attained a surplus of $2.3 billion, a significant turnaround from the $2.1 billion deficit recorded in Q3-2022.

Why U.S. Monetary Policy Objectives are Unrealistic and How it Chokes the Global Economy in a Post-Pandemic World (PART TWO)

By Abdulmajid IsahPosted on July 28, 2023Posted in Africa & World Economy, EconomyTagged Africa, EU, IMF, Interest rates, Monetary Policy, Pandemic, US Dollar, US FedsNo Comments

In the second part of two articles, Abdulmajid discusses the global effects of aggressive monetary policy, in Africa, the EU, and the United States. In addition, He highlights a few analyst recommendations and the potential repercussions of those recommendations.

Why U.S. Monetary Policy Objectives Are Unrealistic and How it Chokes the Global Economy in a Post-Pandemic World (PART ONE)

By Abdulmajid IsahPosted on July 19, 2023Posted in Africa & World Economy, EconomyTagged IMF, Interest rates, Monetary Policy, Pandemic, United States, US Dollar, US Fed1 Comment

The Federal Reserve Bank of the United States of America, also referred to as “The Federal Reserve” or “The Fed” or “The U.S. Fed,” has an almost monopolistic influence on the functioning and operation of global economies. Due to the U.S. dollar’s status as the World Reserve Currency (WRC) and the currency of choice (or circumstance) for international trade and commerce. The Federal Reserve, which is the apex bank of the world’s largest economy, serves almost as the de facto central bank for the rest of the world, and as such, decisions made within its walls ripple through the halls of other central banks and international/continental financial institutions.

In the first of two pieces on this subject, I will make an effort to present a clear and short explanation of what monetary policy is, how the Federal Reserve has worked to rein in inflation in a manner that is consistent with the objectives that it has articulated, and how inflation is proving to be structural in the economies of the United States and the rest of the world.

Cracks in The Armor: Unveiling The First Republic Bank Failure

By Oluwatobi SholankePosted on May 16, 2023Posted in EconomyTagged Credit, FDIC, Inflation, Interest rates, SVB, Technology, US Fed1 Comment

Prior to its failure, FRB was a California-based lender that served wealthy Americans with low-rate mortgages in exchange for cash, much as SVB, which catered to technology firms. However, things changed when the Federal Reserve (the Fed), started raising the benchmark interest rate in 2022 in response to escalating inflationary pressures in the world’s largest economy. Notably, the Fed increased the key policy rate by a cumulative 425bps in 2022, with rates now at their highest level since 2008. FRB’s assets suffered losses as a result, as did customer deposits, and the bank’s reputation was damaged.

Beyond Nigeria’s GDP numbers: Is it icing on the cake or the cake itself?

By Lawal Adekunle HamzahPosted on September 13, 2022Posted in Articles, EconomyTagged Agriculture, Economy, Finances, GDP, insurance, Nigeria, Non-oil sector, Oil production, Oil Sector2 Comments

According to the National Bureau of Statistics (NBS), Nigeria’s Gross Domestic Product (GDP) rose by 3.54% y/y in real terms in the second quarter of 2022 (Q2-2022). This shows that the economy expanded in Q2-2022 by 0.44% when compared to the 3.11% y/y recorded in the preceding quarter (Q1-2022) as the non-oil sector remains the key driver of growth. Similarly, this outturn represents an economic expansion on a year-on-year basis, albeit at a slower rate when compared to Q1-2021 (5.01% y/y) as the growth rate declined by 1.47%.

Nigeria’s inflation rate hits 19.64% in July 2022, the highest in 17 years

By Solomon Sele AyebawanaemiPosted on August 23, 2022Posted in Articles, Business & Finance, EconomyTagged Core inflation, Economy, Food prices, Inflation, NBS, NigeriaNo Comments

An examination of the NBS inflation data shows that this is the highest since September 2005 when the inflation rate hit 24.32% year-on-year. On a month-on-month basis, the headline inflation rose by 1.82% in July 2022. This is the same as the rate recorded in June 2022 (1.82% m/m). In our view, higher energy prices and continued depreciation of the local currency against the US Dollar were the key drivers behind this uptick.

Is Nigeria’s Population a problem?

By Sheriffdeen AdeotiPosted on July 7, 2022Posted in EconomyNo Comments

Nigeria’s population exploded from 60 million at independence – 1960, to 150m in 2010. Currently, Nigeria has a population of 206 million, growing at a 2.67% annual CAGR. Meanwhile, Nigeria’s food production index (normalized to 100), currently at 107, is a 2.10% annual CAGR between 2007 and 2020.