Category: Business Day

Oliver Alawuba, group managing director/Chief Executive Officer, UBA Plc has disclosed that the bank is out of any form of forbearance loans.

Forbearance is a temporary arrangement, typically with a lender, to lower or suspend loan payments for a set period due to financial hardship, allowing the borrower to resume payments once his financial situation improves.

The CBN in June directed banks to temporarily suspend the payment of dividends to shareholders, defer the payment of bonuses to directors and senior management staff. The apex bank also asked banks to refrain from making investments in foreign subsidiaries or embarking on new offshore ventures.

‘There is no forbearance loan in UBA books. CBN has already approved the payment of dividend which will be paid in next couple of days,’ the CEO said on Tuesday during the bank’s investor conference call. UBA said that some of the write-off for forbearance were taken off before H1’25 and finally erased in H1, which made it have less impact on its profitability. The CBN justifies the measures as necessary to strengthen capital buffers, enhance balance sheet resilience, and ensure prudent internal capital retention during this transitional period. The apex bank noted that suspension will remain in effect until banks fully exit regulatory forbearance and demonstrate compliance with capital adequacy and provisioning standards through independent verification.

Alawuba, who led the bank’s excos in responding to questions from participants at the conference further said, ‘It is important to note that UBA tries to ensure that we remain competitive on the total dividend yield for the year.’

The bank CEO noted that the CBN has also approved its dividend payment for the half year (H1). The Africa’s global bank recently released its financial performance for the half-year (H1) ended June 30, 2025, posting a N335 billion in profit after tax (PAT). The audited financials released to the Nigerian Exchange Limited (NGX) showed a remarkable growth across its major business segments, driven by strong earnings.

The bank recorded significant growth in its gross earnings and profit after tax, signalling robust balance sheet expansion.

Speaking on the capital raising and its deployment, he said, ‘the second round of the right issue was very attractive,’ adding that they bank is waiting for regulatory approval for the capital raise.

The bank had raised N234billion in its first capital raise. It just concluded the second capital raise -rights issue of N154billion, which it hopeful of raising as it awaits regulatory approvals.

He’s optimistic that the price of the shares of UBA will reroute north after the rights issue. The bank used the opportunity to disclose its revised growth guidance which include: deposit (20 percent), and loan (10 percent). Alawuba also noted that UBA committed to building Africa’s global bank.

At the end of the first two quarters of the year, and despite the tough global macroeconomic climate in Nigeria and major countries in Africa where the bank operates, UBA’s gross earnings grew by 17.28 percent, rising from N1.371 trillion in June 2024 to N1.608 trillion in the period under review.

Interest income also increased by 32.89 percent from N1.003 trillion in June last year to N1.334 trillion, while total assets went up by 9.71 percent to N33.3 trillion up from N30.3 trillion recorded in December 2024. Total Customer deposits also leapt by 11.9 percent in the same period to close at N27.6 trillion up from N24.6 trillion recorded at the end of 2024.

The results also showed that profit after tax which stood at N316.36 billion in June 2024, rose by 6.06 percent to close the half year at N335.53 billion, while profit before tax dropped slightly from N401 billion to N388 billion in the period under consideration. However, the banks’ shareholders’ funds remained strong as it increased by 23 percent from N3.41 trillion in December 2024, to N4.22 trillion in June 2025.

The Reddington Multi-Specialists Hospital, Lagos, brought vital healthcare services directly to the heart of the Oniru Community through a free medical outreach held at the Oniru Palace.

The initiative, a collaboration with His Royal Majesty, Oba Abdulwasiu Omogbolahan Lawal, the Oniru of Iruland, provided free consultations, health screenings, nutrition counseling, pharmacy services, and referrals to over 500 residents.

A 53-member medical team from Reddington Hospital, comprising doctors, nurses, nutritionists, pharmacists, laboratory scientists, dentists, physiotherapists, and ophthalmologists, anchored the event. The team’s comprehensive approach ensured that men, women, and children received quality care, addressing a wide range of health concerns, from high blood pressure to dental and eye care. Dr, Abiodun Osibamowo, the medical director of The Reddington Multi-Specialists Hospital, at the event,

harped on the importance of regular medical screening and counselling as key to sustainable health and general wellness.

‘You don’t wait until you start seeing symptoms of diseases before you come to the hospital. By that time, it may be too late and the doctors would be constrained in saving the patient’, Osibamowo told the crowd that had gathered at the Palace for the health screening.

He said the management of Reddington Hospital was partnering with the Oniru-in-council for the free medical services because of the excellent leadership Oba Abdulwasiu Lawal has provided for the residence of Iru Kingdom since he ascended the throne five years ago.

‘When the Kaabiyesi visited The Reddington Hospital earlier this year as part of the activities marking his fifth anniversary on the throne, he sought for our collaboration in providing quality and affordable health care for the people of his community. This medical outreach marks the beginning of such partnership,’ Osibamowo said. His Royal Majesty, Oba Abdulwasiu Omogbolahan Lawal, commended the management of The Reddington Hospital for sending a very strong team of multi-specialists to the free medical outreach, nothing that it afforded most of his subjects who would otherwise have been unable to afford such services to get quality health counselling and care at zero cost.

‘I am very passionate about the health and wellbeing of my people that is why the Oniru-in-council is partnering with a very reputable hospital like The Reddington Hospital to provide free medical services to them and ensure we have a healthy community able to work and earn a living’, Lawal said.

The questions and answers session anchored by the Osimabowo was very enlightening and educative as he answered questions on broad range of health issues, causes and prevention, such as high blood pressure, obesity, stroke, cancer, ulcer, etc. He talked about the importance of eating right, regular exercise and regular health screening and counselling.

No fewer than 500 residents comprising men, women and children benefitted from the free medical outreach. Some of the beneficiaries expressed their feelings.

‘I am happy about this programme and I pray to God to keep our Oba because visiting the hospital these days is very expensive. I also learnt a lot from the Medical Director during the questions and answers session especially the causes of high blood pressure and stroke and how to prevent it’, said Mrs Ige Salako. For Abdullatif Ogunbambi Abisogun, the free medical outreach should be more regular ‘because we need to be checking our health status from time to time. Prevention is better than medication’.

The Reddington Multi-specialists Hospital, Lagos has been at the fore of cutting-edge medical technology backed by very experienced consultants providing world class affordable services thereby reducing medical tourism and capital flight out of Nigeria.

President Bola Tinubu has condemned the murder of Somtochukwu Maduagwu, a news anchor with Arise News Television, directing security operatives to fish out her killers.

Bayo Onanuga, presidential Spokesman, said Maduagwu was killed during an attack by robbers at her residence in Katampe, Abuja.

President Tinubu extended his condolences to the family of Maduagwu, the management and staff of Arise News Television, and the entire Nigerian media fraternity over the loss. According to the President : ‘ Ms Maduagwu was a promising professional journalist whose life was cut short in a cruel and condemnable manner.

‘ Security and law enforcement agencies should conduct a quick and thorough investigation into the incident and ensure that the perpetrators are apprehended and brought to justice without delay,’ he said.

The President, while also commiserating with the bereaved family, assured Nigerians that his administration remains committed to ensuring the safety and security of all citizens, and will continue to strengthen measures aimed at combating crime in all its forms.

Nigerian Deposit Money Banks are parking record amounts of excess cash at the Central Bank of Nigeria (CBN) deposit window while lending to the economy continues to stutter, even after the recent cut in interest rates.

Data from the CBN shows that banks’ Standing Deposit Facility (SDF) rose to an all-time high of N5.38 trillion on Monday, driven by excess liquidity from Federation Account Allocation Committee (FAAC) disbursements and Open Market Operation (OMO) repayments.

The SDF is a monetary policy tool that allows banks and other deposit-taking institutions to lodge their excess liquidity with the CBN overnight and earn interest – without needing to provide collateral.

The amount deposited by banks surged by 52.6 percent, rising from N3.5 trillion as of September 24, 2025, to N5.38 trillion on Monday, September 29, 2025.

Banks shun lending

On the borrowing side, through the Standing Lending Facility (SLF), commercial banks have shunned the CBN’s lending window for the past nine business days. Borrowing from the apex bank’s window dropped to a one-month low of N22 million on September 16, 2025, the last time such levels were recorded being August 8, 2025, when banks borrowed N25 million.

Over the same period, the CBN carried out OMO repayments worth N459.8 billion in one month, including N254.9 billion on September 23, 2025, and N204.9 billion on September 16, 2025.

The banking system opening balance stood at N338.9 billion as of Monday, September 29, 2025, reflecting a 22.86 percent increase from N275.88 billion at the beginning of the month. Meanwhile, the CBN has not conducted any OMO auction since September 4, 2025, after selling N620.7 billion in an auction on September 3, 2025.

Analysts’ view

Adebowale Funmi, head of Research at Parthian Securities, explained that banks are drawn to the SDF because it remains more attractive than investing in treasury bills. She noted that with the current MPR at 27 percent and an asymmetric corridor of -250/+250 basis points, the SDF rate stands at 24.5 percent. By comparison, the discounted yield on a 364-day treasury bill is about 16.78 percent, with effective yields slightly below 20 percent – making the SDF a more appealing option for banks.

Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), said the surge in bank deposits with the CBN reflects the absence of sufficient credit opportunities to absorb the available resources.

‘Even though the rate has come down, the opportunities are not there. If the risk environment is high, banks will prefer to keep their money with the CBN,’ he said.

Yusuf stressed that the elevated risk perception, particularly among small and medium enterprises (SMEs), discourages banks from lending and suggested that the CBN may need to implement further rate cuts to stimulate credit creation.

At its 302nd meeting last week, the Monetary Policy Committee (MPC) unanimously voted to reduce the Monetary Policy Rate (MPR) by 50 basis points to 27 percent, adjust the symmetric corridor to +250/-250 basis points around the MPR, set the Cash Reserve Ratio (CRR) at 45 percent for commercial banks and 16 percent for merchant banks, and introduce a 75 percent CRR on non-Treasury Single Account (TSA) public sector deposits, while maintaining the Liquidity Ratio (LR) at 30 percent. The move marked the first policy rate cut in five years.

Ayodeji Ebo, managing director/chief business officer at Optimus by Afrinvest, explained that with the MPR corridor fixed at +250/-250 basis points, the SLF rate declines to 29.5 percent from 30 percent, while the SDF rate drops to 24.5 percent from 25 percent.

According to him, this adjustment means banks will now pay slightly less when borrowing short-term liquidity from the CBN and earn marginally less when depositing excess funds overnight. The effect is to keep interbank market rates aligned with the new MPR, thereby ensuring smoother monetary policy transmission.

Ebo added that the imposition of a 75 percent CRR on non-TSA public-sector deposits significantly restricts the portion of such funds banks can deploy for lending, leaving only N250 out of every N1,000 available. He explained that while this measure curtails banks’ dependence on public-sector liquidity, reduces speculative use of government deposits, and strengthens monetary control, it also tightens liquidity further, potentially slowing the pace at which the rate cut translates into actual credit expansion in the economy.

Credit position

Analysts at FBNQuest anticipate a gradual recovery in credit expansion to the real economy, supported by the narrowing of the corridor around the MPR and the reduction in commercial banks’ CRR.

Credit to the private sector declined by 2.2 percent to N76.14 trillion in June 2025, compared to N77.8 trillion as of May 2025, data from the CBN indicated.

‘The rise in deposits to the CBN is an excess liquidity issue,’ said Tilewa Adebajo, chief executive officer of The CFG Advisory. He explained that banks currently hold more funds than they can deploy under acceptable risk-return conditions. According to him, this reflects a cautious stance by banks, given the weak credit appetite arising from high lending rates and elevated risks in the economy. ‘How many people can borrow at 40 percent?’ Adebajo asked.

Sixty-five years after independence, Nigeria’s telecommunications sector reflects both the nation’s remarkable progress and its unfinished struggles.

From colonial telegraphs in the late 19th century to a digital ecosystem with more than 220 million active lines today, telecoms have become a powerful driver of economic inclusion and innovation.

Yet stubborn gaps, including vandalism, broadband shortfalls, power deficits, multiple taxation, and regulatory hurdles, amongst others, continue to dim the gains.

From telegraphs to 172m lines

Nigeria’s telecoms journey began in 1886 when Cable and Wireless established the first telegraphic link. At independence in 1960, just 18,724 fixed telephone lines served a population of 40 million. The department of Posts and Telecommunications oversaw the network, which remained limited and unreliable. Ambitious targets under the First National Development Plan (1962-1968) sought to expand coverage, but the civil war stunted progress, leaving results at less than half of projections. The 1970s and 1980s brought incremental growth, but service was still costly and inefficient.

A turning point came in 1985 with the merger of the Posts and Telecommunications Department and Nigerian External Telecommunications into Nigerian Telecommunications Limited (NITEL), a state monopoly. NITEL struggled to deliver efficient service, and by the late 1980s, reforms were overdue.

The 1988 Privatization and Commercialization Decree signaled change, but meaningful liberalisation only arrived in the 1990s. The creation of the Nigerian Communications Commission (NCC) in 1992 opened the door to competition, while the 2000 National Telecommunications Policy under president Olusegun Obasanjo dismantled NITEL’s monopoly. GSM licensing in 2001 marked the dawn of a new era.

GSM era sparks growth

Operators like MTN and Globacom transformed Nigeria’s telecoms landscape almost overnight. In 2001, fewer than half a million lines existed. Today, subscriptions is about 172 million, according to NCC latest data. Telecoms now contribute roughly 14 percent of GDP, enabling e-commerce, fintech, and social connectivity on a scale unimaginable a generation ago.

Infrastructure milestones such as Glo-1, the first submarine cable fully owned by an African operator, showcased Nigeria’s ambition to connect globally.

The Nigerian Communications Act of 2003 cemented a strong regulatory framework, ensuring competition and attracting massive private investment.

Tinubu’s Renewed Hope Agenda

Since May 2023, telecommunications has taken on greater prominence under President Bola Tinubu’s Renewed Hope Agenda. Bosun Tijani, minister of Communications, Innovation and Digital Economy, has championed a 2023-2027 Strategic Blueprint anchored on five pillars: knowledge, policy, infrastructure, innovation, and trade.

The results are already visible. More than 117,000 Nigerians have been trained under the 3 Million Technical Talent (3MTT) program, exceeding early targets. Global partnerships have been struck with MTN, Airtel, the European Union, and UNDP, while Nigeria launched a National AI Strategy to position itself as a continental leader in emerging technologies.

Investor confidence has returned, buoyed by policy moves such as scrapping the controversial five percent telecom tax and approving tariff adjustments. Foreign direct investment in ICT surged nine-fold from $22 million to $191 million in the first quarter of 2024. Operators, too, are doubling down: MTN Nigeria has pledged N1 trillion in capital expenditure for 2025 alone. ‘Stable policies and regulatory clarity are enabling us to reinvest in quality of service. It is a testament to how far the sector has come and how much more it can deliver,’ said Karl Toriola, chief executive officer of MTN Nigeria.

Broadband, power gaps, vandalism persist

Despite progress, major gaps persist. Broadband penetration stood at 48.81 percent in August 2025, far short of the 70 percent target set in the National Broadband Plan. Rural communities remain underserved, hobbled by power shortages, multiple taxation, and right-of-way bottlenecks.

The World Bank estimates that Nigeria’s infrastructure gap costs the economy $29 billion annually. Power shortages alone erode quality of service, with telecom operators spending heavily on diesel to run approximately 40,000 sites nationwide.

Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), warned that systemic barriers remain. ‘Multiple taxation, vandalism and high cost of Right of Way are still major problems that need to be addressed to encourage more investments,’ he said. Ambitious projects ahead

Government officials insist solutions are in the pipeline. Later this year, the administration plans to roll out Project BRIDGE, a $2 billion, 90,000-kilometre national fibre network, alongside 7,000 new towers, 80 percent of which will serve underserved areas.

Other initiatives include e-governance platforms, Talent City innovation hubs, and expansion of the 3MTT program to train more digital workers.

‘We believe we should build and are building a resilient global system to ensure Nigeria is not just keeping pace with digital infrastructure but also strengthening it,’ Tijani said.

NCC’s policy-to-law legacy

For the NCC, Nigeria’s telecoms story has always rested on strong policy foundations. Aminu Maida, the commission’s executive vice chairman, recalled that the National Telecommunications Policy (2000) paved the way for the Nigerian Communications Act (2003), which transformed connectivity.

‘We moved from about 500,000 fixed lines to almost 80 million active lines in under a decade. Competition drove innovation and affordability; even with recent tariff adjustments, the average price per minute remains below the N50 per minute level at the dawn of GSM,’ Maida said.

Newer policies, including the National Policy on 5G, the National Broadband Plan (2020-2025) and the National Cybersecurity Policy, are shaping today’s landscape. Meanwhile, indigenous content and online child protection frameworks are in early stages of implementation.

Looking ahead, Maida said the NCC’s focus will be on expanding fibre-to-buildings, ensuring affordable high-speed connectivity, and building resilience against vandalism and infrastructure disruptions. ‘Our goal is a robust, resilient, safe, and secure internet for all citizens, businesses, and government,’ he stated.

As Nigeria reflects on its independence milestone, the telecoms sector stands as both a symbol of progress and a reminder of unfinished business. From 18,724 lines in 1960 to 172 million active subscriptions today, the sector’s trajectory underscores the transformative power of connectivity.

But broadband gaps, power shortages, and policy hurdles still hold back its full potential. Closing those gaps and ensuring equitable access may well define how completely telecoms can deliver on the promise of inclusion in Africa’s largest economy.

Business recovery and insolvency stakeholders have called for the strengthening of insolvency institutions to enhance practitioners’ effectiveness and align Nigeria’s frameworks with global best practices.

This was made known at the 2025 Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) conference in Lagos. The two-day event focused on deepening the use of insolvency tools to resolve chronic indebtedness and financial distress facing businesses.

Justice John Tsoho, Chief Judge of the Federal High Court, represented by Justice Akintayo Aluko, told participants that practitioners, regulators, and the judiciary all play critical roles in restructuring and insolvency processes, especially during periods of economic turbulence. He urged professionals to uphold integrity, independence, impartiality, and transparency while avoiding personal gain from sensitive corporate information.

‘The role of an insolvency practitioner in the life of a company under distress is significant. Insolvency does not necessarily signal the end of a business,’ Tsoho said. ‘Practitioners must carefully adopt tools such as receivership, administration, mergers and acquisitions, or bankruptcy in the best interest of both creditors and debtors.’ Chimezie Ihekweazu, BRIPAN President, said this year’s theme, ‘Deepening Insolvency Tools for Resolving Commercial and Financial Challenges of Businesses’, was timely given Nigeria’s exposure to economic headwinds, geopolitical shifts, and technological disruptions.

‘In Nigeria and across Africa, it has become imperative to sharpen and deepen the tools at our disposal for business rescue, debt restructuring, and sustainable recovery,’ he said. Justice Victoria Nwoye, also speaking at the conference, stressed that insolvency frameworks should serve as ‘economic stabilisers,’ not punitive measures. She warned that many regimes worldwide remain inaccessible to businesses that need them most, leaving both small enterprises and multinationals vulnerable during financial crises.

‘Be it small enterprises or multinational corporations, the ability to navigate distress is no longer a peripheral concern; it is central to survival and growth,’ she noted.

The conference concluded with a consensus that Nigeria must strengthen its insolvency institutions, enforce ethical codes for practitioners, and improve access to restructuring mechanisms to safeguard businesses and the wider economy.

Dangote Petroleum Refinery has continued operating despite a nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which has disrupted logistics and heightened tensions in the oil sector, company and trade sources confirmed on Tuesday.

Initial reports suggested that the entrance to the 650,000-barrel-per-day facility in Lagos was blocked by striking workers, but refinery operations have not been fully halted. The industrial action, which began on Sunday, is already attracting the attention of the Nigeria Labour Congress (NLC), PENGASSAN’s parent body, raising fears of broader solidarity protests that could worsen pressure on the refinery’s operations.

A mediation meeting convened on Monday to resolve the standoff ended in deadlock after more than nine hours of deliberations.

The talks, chaired by labour minister Muhammad Dingyadi, brought together leaders of PENGASSAN, representatives of Dangote Refinery, the finance ministry, and top officials of both the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority. Festus Osifo, PENGASSAN’s president, said negotiations failed because Dangote management refused to reinstate 800 workers whose dismissal sparked the dispute.

He said the union would continue its action until those workers were reinstated.

‘Our position has been very clear; you have to reinstate these people. If you reinstate them tonight, we will call off our action tonight but unfortunately, that reinstatement did not happen. And we were not able to reach conclusions on the subject,’ Osifo told journalists after the meeting. The meeting continues today, according to reports. But for now, Dangote Refinery appears largely unshaken, with operations ongoing despite the union’s threats and the unresolved conflict.

In virtually every nation, the discourse on economic growth often revolves around factors such as industrial output, foreign investment, technology, and human capital development. Yet, one element that is sometimes underexplored but remains fundamental is housing infrastructure.

Housing is more than just shelter; it is an economic commodity, a social stabiliser, and a driver of development. From job creation to stimulating demand in allied industries, and from providing collateral for wealth creation to enabling urban renewal, housing infrastructure plays a central role in catalysing sustainable growth.

At the heart of modern economies, housing represents both a consumption good and an investment asset. For households, a house is the most valuable asset they may ever own; for governments, housing development signifies a visible expression of social contract fulfillment; and for the economy, housing is a critical sector that triggers multiplier effects across industries.

According to World Bank estimates, the real estate and construction sector contributes between 7 percent and 14 percent of global GDP, depending on the region. In advanced economies such as the United States, housing-related activities, construction, real estate, mortgage finance, home improvement, and property services, are significant drivers of employment and wealth accumulation.

Similarly, in emerging economies like Nigeria, housing is estimated to contribute about 3.1 percent of GDP, though with vast untapped potential. The importance of housing infrastructure stems from its ability to integrate multiple aspects of the economy, ranging from financial markets to labour absorption, raw material demand, and even energy consumption patterns.

One of the clearest pathways through which housing drives economic growth is job creation. Housing infrastructure development requires a wide array of skilled and unskilled labour-land surveyors, architects, town planners, engineers, builders, masons, carpenters, electricians, plumbers, and labourers. The construction phase alone is highly labour-intensive and generates immediate employment.

Beyond construction, housing stimulates jobs in allied industries such as:

Cement, steel, timber, and glass manufacturers benefit directly from rising demand.

Furniture, interior décor, and home appliance industries experience growth from household spending.

Financial institutions expand their mortgage, insurance, and investment portfolios.

The International Labour Organisation (ILO) estimates that every housing unit constructed directly and indirectly generates between 5 and 7 jobs, depending on the complexity of the project. In countries struggling with high unemployment rates, especially among youths, housing development represents a low-hanging fruit for labour absorption and poverty alleviation.

Furthermore, housing plays a unique role in wealth accumulation and capital formation. Unlike many consumer goods that depreciate, housing typically appreciates over time, thereby serving as a store of wealth. For many households, owning a home is the first step toward economic security and social mobility.

Moreover, housing assets are often used as collateral to access credit, which fuels entrepreneurial ventures, small businesses, and industrial expansion. In advanced economies, mortgage markets are among the most developed financial sectors, reflecting the centrality of housing to economic dynamism. In contrast, underdeveloped housing finance systems in many developing countries limit credit creation, thereby constraining economic opportunities.

Thus, by expanding housing infrastructure, countries stimulate financial deepening, broaden access to capital, and enhance wealth distribution among citizens.

Urbanisation is one of the defining features of the 21st century. The United Nations projects that by 2050, nearly 70 percent of the world’s population will live in urban areas. For countries like Nigeria, where urbanisation is rapid but poorly managed, housing infrastructure becomes a crucial determinant of whether urban growth leads to prosperity or squalor.

Well-planned housing infrastructure is not just about buildings; it encompasses roads, drainage, power supply, water systems, waste management, schools, and hospitals. When integrated with urban planning, housing infrastructure prevents the growth of slums, enhances liveability, and improves productivity.

A city with adequate housing infrastructure attracts investors, boosts tourism, and fosters innovation. On the contrary, inadequate housing leads to overcrowding, insecurity, health hazards, and economic inefficiency.

Therefore, housing infrastructure development must be seen as a strategic tool for urban renewal and sustainable cities, aligning with the United Nations Sustainable Development Goal (SDG 11): ‘Make cities and human settlements inclusive, safe, resilient, and sustainable.’

Housing infrastructure has strong backward and forward linkages with the industrial sector. The construction of a single housing estate requires raw materials such as cement, iron rods, paints, ceramics, cables, and roofing sheets-all products of local industries.

This demand stimulates local production, encourages import substitution, and generates foreign exchange savings. In countries with strong housing policies, such as China, the real estate and housing sector has been deliberately leveraged to grow domestic industries.

The Chinese government, for example, integrated housing development with industrial production, thereby transforming its housing sector into a pillar of its economic miracle. For developing countries, expanding housing infrastructure could serve as a stimulus for industrial diversification away from resource dependency, creating a robust value chain of construction-related industries. Economic growth is not just about figures and GDP ratios; it is equally about social cohesion and stability. Adequate housing contributes to societal peace by reducing homelessness, overcrowding, and the tensions that arise from informal settlements.

A family that lives in decent housing experiences improved health, educational performance for children, and higher productivity for adults. Conversely, inadequate housing contributes to poor health outcomes, crime, and urban discontent-all of which erode economic progress. Housing is, therefore, not merely an economic commodity; it is a social stabiliser and a foundation for inclusive development. Countries that invest in housing infrastructure ultimately invest in the well-being and productivity of their citizens.

Despite its enormous potential, several challenges limit the ability of housing infrastructure to fully drive economic growth in many developing economies. These include:

High Construction Costs – Rising prices of cement, steel, and other inputs make housing unaffordable for low- and middle-income earners.

Weak Mortgage Systems – Limited access to long-term financing hampers home ownership and housing investment.

Land Tenure and Titling Issues – Bureaucratic bottlenecks in land administration discourage investment and inflate costs.

Infrastructure Deficits – Poor roads, electricity, and water supply in many areas limit large-scale housing projects.

Policy Inconsistency – Frequent changes in government policies undermine long-term housing sector planning.

These barriers explain why many countries face acute housing deficits. For instance, Nigeria is estimated to have a housing deficit of over 20 million units, requiring trillions of naira in investment to bridge. Without deliberate intervention, housing infrastructure cannot achieve its transformative economic role.

To fully harness housing infrastructure as a driver of economic growth, deliberate strategies must be pursued to:

Expand Affordable Housing Finance – Strengthen mortgage institutions, encourage low-interest housing loans, and promote innovative financing models such as cooperative housing schemes.

Promote Local Building Materials – Support research and development into affordable, locally sourced materials to reduce costs and dependence on imports.

Reform Land Administration – Simplify land titling processes, reduce bureaucratic delays, and digitise land registries to attract investment.

Public-Private Partnerships (PPP) – Governments should partner with private developers to deliver large-scale housing projects while providing enabling infrastructure.

Integrate Housing with Urban Planning – Housing development should be accompanied by roads, schools, hospitals, and utilities to create liveable communities.

Incentivise Green Housing – Encourage eco-friendly housing designs that reduce energy costs and promote sustainability.

By implementing these strategies, housing infrastructure can become a central pillar of economic transformation.

In conclusion, housing infrastructure is more than bricks and mortar-it is the foundation of economic progress and social stability. By stimulating employment, wealth creation, industrial development, and urban renewal, housing plays a catalytic role in shaping the trajectory of national growth.

Countries that have prioritised housing development, such as Singapore, China, and South Korea, have not only witnessed improved living standards but also experienced accelerated economic growth. For nations like Nigeria, where the housing deficit remains alarming, deliberate investment in housing infrastructure represents both a social necessity and an economic opportunity.

In the final analysis, the road to inclusive and sustainable growth is paved not only with factories, highways, and financial markets but also with the homes people live in. If governments and stakeholders recognise housing as a strategic growth driver, they will not only build houses but also build economies, build wealth, and build nations.

The Edo State Executive Council has approved a revised supplementary budget of N799.820 billion for the 2025 fiscal year, up from the initial N675.220 billion, representing an increase of approximately N125 billion, or 18 percent.

The approval which followed an emergency executive meeting presided over by the Chairman-in-Council and Governor of Edo State, Monday Okpebholo, on Monday,

Briefing journalists immediately after the meeting, the Commissioner for Finance, Emmanuel Okoebor, explained the rationale behind the adjustment and emphasised the government’s commitment to infrastructure development.

Okoebor explained: ‘Previously, we had a budget of N675 billion with recurrent expenditure having about 33 percent and capital 67 percent. The new revised budget now has about 70 percent for capital expenditure as against 30 percent for recurrent expenditure. It shows the commitment of Governor Monday Okpebholo in infrastructural development in Edo state.’

He further explained the size and nature of the increment. ‘The increment in the budget is about N125 billion, which signifies about 18 percent of the previous budget. Recurrent increased with about N12 billion, while capital is about N113 billion from the previous one. Given about 25 percent increment in Capital expenditure and just 5 percent increment in recurrent expenditure.

‘It clearly shows that the government is concerned about infrastructural development making Edo people happy. We have done about 254KM of road across the state, and many more construction works are ongoing.

‘Recurrent expenditure has about 5 percent increment as the increase in minimum wage necessitated that increment, including a lot of employment the present administration did in the hospital management board for over 1000, and it needs to be captured.

‘The budget has been increased by N125 billion, which is about 18 percent, and capital expenditure by about 25 percent, from N450 billion to N563 billion.’

According to the Honourable Commissioner for Information and Communication, Paul Ohombamu, the revised budget is expected to be forwarded to the Edo State House of Assembly for legislative consideration and passage.