Category: Business Day

Yemi Kale, the group chief economist and managing director, Afreximbank has said that if Nigeria stay the course of its ongoing reforms, inflation could fall to around 14 percent by end of 2026.

Meanwhile, the National Bureau of Statistics report showed that Nigeria’s inflation eased to 20.12 percent in August from 21.88 per cent in July.

Kale who stated this while delivering a keynote address at the ‘Platform Nigeria’, said that however, between now and then the hardship on households will continue.

According to him, much of the previous decade, monetary policy oscillated between tightening to fight inflation and loosening to spur growth, often undermined by large quasi-fiscal interventions. However, CBN has now reasserted price stability which is its core mandate. The Monetary Policy Rate was initially raised to 27.5 percent-one of the steepest tightening on record-while open-market operations were streamlined to mop up excess liquidity.

‘And importantly, these actions were accompanied by clearer communication with regular policy reports, forward guidance, and transparent explanations of the inflation outlook.’

According to him, the results are now visible, as headline inflation, which averaged above 25-30 percent in 2023-24, has begun to ease toward the low 20s, and food inflation, while still elevated, is slowing. He streesed that the gains are not merely statistical, adding that every percentage point of disinflation protects the real value of salaries, pensions, and savings, and reduces uncertainty for investors who must plan projects years in advance

‘And I believe that if we stay the course, inflation could fall to around 14 percent by end of 2026, all things remaining constant, as the effects of the currency float and fuel price jump are absorbed,’ he said.

According to Kale, Nigeria missed a similar opportunity to soften the immediate shock of reform, relying on ad-hoc and often poorly implemented palliatives rather than a comprehensive, well-communicated and targeted social-protection plan.

‘But the lesson here is, again, clear Reform is like curing a fever-you must endure some discomfort as the medicine takes effect, but the alternative of letting the fever rage because the pill is bitter or injection too painful is far worse.

‘A second, equally important lesson here is for government itself, which I have highlighted many times already. Many peer countries have matched reforms with targeted and effective social cushions to protect their most vulnerable citizens.

‘I mentioned Egypt earlier. Ghana is another. Ghana combined its 2022 debt-restructuring and currency reforms with a comprehensive and well targeted, scaled-up cash-transfer and school-feeding program to absorb some of the shock. But in this regard, Nigeria missed a similar opportunity to soften the immediate shock of reform, relying on ad-hoc and often poorly implemented palliatives rather than a comprehensive, well-communicated and targeted social-protection plan,’ Kale said. He emphasised that the key is not just introducing necessary reforms or even the important political will to see them through, but reforms must also be carefully planned, and thoughtfully implemented, so that structural change is matched by social protection and long-term public confidence.

The Nigerian private sector closed the third quarter of 2025 on a strong note, with business activity expanding for the tenth consecutive month, even as the pace of expansion slowed from the previous month.

According to the latest Stanbic IBTC Bank Purchasing Managers’ Index (PMI), the headline PMI posted 53.4 in September, slightly below August’s 54.2, but still firmly above the 50.0 benchmark that signals expansion.

‘Growth was supported by a surge in new orders, driven by improved customer demand and the launch of new products. Although the rate of expansion eased to a three-month low, business activity recorded a sharp increase across all four broad sectors. Firms responded by raising output, expanding operating capacity, and boosting purchasing activity,’ the report disclosed.

Muyiwa Oni, head of equity research, West Africa at Stanbic IBTC Bank, said Nigeria’s business conditions ended the quarter on a strong note, although the pace of strengthening moderated relative to August. Specifically, the headline PMI settled at 53.4 points in September from 54.2 in August, buoyed by improvement in output and new orders, while inflationary pressures also continued to soften.

‘The rate of expansion in output, at 56.1 points compared with 56.8 in August, remained strong despite easing slightly, supported by better material availability and rising customer demand. New orders, at 55.4 points, stayed well above the growth threshold for the 11th consecutive month, though at a slower pace than August’s 58.3 points,’ he added. The PMI figures align with the broader economy, which grew by 4.23 per cent year-on-year in Q2 2025, compared with 3.13 per cent in Q1, bringing first-half growth to 3.69 per cent. Oni said.

He added that ‘Agriculture and oil were the strongest drivers, expanding by 2.82 percent and 20.46 percent, respectively, and jointly contributing 35.6 percent of real GDP growth. Non-oil sectors such as ICT, finance and insurance, real estate, and trade also recorded positive gains.’

The PMI report hinted that Stanbic IBTC projects sustained growth into 2026, supported by a likely reduction in interest rates, lower inflation, and reduced exchange rate volatility.

The bank expects oil and non-oil sectors to grow by 14.3 per cent and 4.4 per cent year-on-year, respectively, in Q3 2025, translating into overall GDP growth of 4.5 per cent.

Yellow Card, a leading Pan-African fintech firm, has been named a finalist for the Payments Category at the inaugural Money Awards, hosted by Money20/20, the world’s premier fintech conference.

The recognition, to be celebrated at the event in Las Vegas on October 26, underscores Yellow Card’s bold mission to democratize financial access across Africa and emerging markets, placing it among global innovators reshaping the future of financial services.

Founded with a vision to level the financial playing field, Yellow Card is building critical payments infrastructure that empowers entrepreneurs in cities like Lagos and São Paulo to compete globally with the same opportunities as those in London or New York.

The fintech’s nomination highlights its rapid growth, strategic partnerships with industry giants like Visa and Fireblocks, and its expansion into new markets over the past year.

In response, Chris Maurice, CEO and co-founder of Yellow Card, said the company’s vision has always been bigger than just payments.

‘It is about creating a level playing field where an entrepreneur in São Paulo or Lagos has the same opportunity to scale globally as one in London or New York. Being a finalist at Money20/20 tells us the world is not just watching, but recognizing the importance of that mission,’ Maurice averred.

Justin Poiroux, CTO and co-founder of Yellow Card, added, ‘From an architectural standpoint, our innovation lies in making the complex feel simple. Businesses don’t need to be crypto experts to benefit from the speed and efficiency of stablecoins.

‘We built an infrastructure layer that handles all the back-end complexity. This nomination recognizes that a powerful customer experience is just as critical as the underlying technology. We’re building the financial layer to enable businesses around the world to harness the power of stablecoins and emerging market rails alike.’

Regal Insurance, Universal Insurance, and Sovereign Trust Insurance Plc have emerged as the most performing insurance stocks in the nine months of 2025, reflecting renewed investor confidence in Nigeria’s insurance sector.

According to data from the Nigerian Exchange Group (NGX), insurance stocks closed September with the sector’s index growing by 67.7 percent year-to-date to N1,191.04, up from N710.08 recorded on January 31st. This growth outpaced several other sectors of the equities market, underscoring the renewed appetite for insurance equities.

Regal Insurance led the market, with its share price soaring 290.2 percent from N0.41 in January to N1.6 by the end of September.

Universal Insurance followed closely, rising by 216.6 percent, from N0.36 in January to N1.14 in September. Sovereign Trust Insurance Plc ranked third, appreciating by 200 percent, moving from N1.00 to N3.00 within the same period.

AIICO Insurance and NEM Insurance joined the rally, with both companies more than doubling their share value, gaining 116 percent and 110 percent, respectively.

The momentum was equally felt among mid-tier players. Veritas Kapital Assurance advanced by 85 percent, while Cornerstone Insurance, Linkage Assurance, and International Energy Insurance all recorded growth of more than 70 percent year-to-date.

AXA Mansard Insurance, one of the most capitalised players in the market, rounded off the rally with a gain of 56 percent, reinforcing the broad-based recovery across the industry.

A major factor shaping sentiment is the recently passed Nigeria Insurance Industry Reform Act (NIIRA), which introduces stringent capital requirements aimed at strengthening the sector’s resilience.

Under the new regime, insurers must raise their minimum paid-up capital to N15 billion for non-life businesses, N10 billion for life, and N35 billion for reinsurance. Operators that fail to comply within 12 months risk losing their licences.

Industry experts say that while the recapitalisation exercise could lead to market consolidation through mergers, acquisitions, or exits, it will ultimately create fewer but stronger players.

Similarly, the insurance sector’s contribution to the nation’s GDP also recorded double-digit growth in the second quarter, rising to 15.7 percent compared to 7.08 percent in the first quarter.

The Federal Government which seeks a $1trn economy has been told how to easily meet the target and probably get to as high as $3trn within the period targeted.

He also said the right tech deployment could add half of Nigeria’s annual tax to current amounts, saying evidence is already on display.

This was the major echo at the StartupSouth 2025 summit which began in Port Harcourt Thursday, October 2, 2025.

Sylva Opuala-Charles, a professor of economics and financial expert, who delivered a keynote at the well-attended event, said technology adoption could be the game changer in the quest.

The Bola Ahmed Tinubu administration has since declared the ambition of a $1trn gross domestic product (GDP) before year 2030, from current $200bn to $300bn levels. Now, the professor said Nigeria could get to $3trn if the right technology is adopted.

Opuala-Charles, the founder and president of the Port Harcourt Premier Business School who was a banker and onetime finance commissioner in Bayelsa State, said the trillion-dollar economy could be majorly aided by research and development investment expenditure. ‘Research and Development (RandD) expenditure is the gross domestic spending on research and development, as a percentage of GDP.’

The world average is in RandD is 2.67%. ‘The US is at 3.59% as against less than 0.5% for Nigeria. ‘For instance, technology adoption in revenue collection could improve the country’s revenue generation by over 50% in the medium term.

‘We are already seeing this happening with the government generating over N20 trillion in revenues by August 2025 as against half of this in the corresponding period of last year with increased technology adoption in the process.’

He said with technology adoption in procurement, expenditure management in government and the private sector, there would be a major turning point for Nigeria’s growth and development.

Speakers and top stakeholders at the Startupsouth 10th annual conference in PH

He said with a population of under 35 years of age comprising about 75% of Nigeria’s population, the government and big corporations can stem the country’s growth challenges by taking remarkable measures to promote and adopt technologies in all sectors.

To achieve this, Opual-Charles suggested immediate establishment of technology parks in major cities to provide tremendous business and job opportunities to young people and innovative minded citizens as inalienable rights to change their lives.

‘With technology, capital will not be much of a challenge as scaling and repeatability are the major drivers in the startup space. What the government owes us is to make technology work and legislate to make both public and the private sectors take it to the next level. This will also help the ease of doing business, which is capable of attracting foreign direct investments into the country and creating new economic businesses, changing lives, transforming institutions and strengthening the economy.’

The conference, the 10th, seems to shake the south-south especially Port Harcourt. Most participants and experts around Nigeria and beyond streamed their commendations and appreciations for the journey so far.

Chairman of the StartupSouth, Kalada Apiafi, who is a known personality in the Small and Medium Enterprise (SME) space in the Niger Delta, said key resource in any business is information. He said Startupsouth was a place to get the strategic information tips to build, connect, and grow as the slogan says.

In his remarks, the convener, Uche Aniche, showed how the states of the south-south and east have faired in startup and tech.

Major speakers that thrilled the participants on day one include those from Google, Main One (now Equinix), and goodwill messages.

Nigeria’s U20 male team, the Flying Eagles, defeated Saudi Arabia 3-2 in a thrilling Group F encounter in Talca on Friday morning to earn their first three points and brighten their chances of advancing to the Round of 16 at the ongoing FIFA U20 World Cup in Chile.

Midfielder Nasiru Salihu opened Nigeria’s account in the 10th minute, but the Asians hit back in the 21st through Amar Alyuhaybi.

Undeterred, the seven-time African champions regained the lead as Amos Ochoche struck seven minutes before the break, sending Nigeria into halftime 2-1 ahead.

Saudi Arabia fought back again, equalising six minutes into the second half through Talal Haji.

The Flying Eagles, however, had the final say. With four minutes of added time, captain Daniel Bameyi coolly converted from the penalty spot to seal a dramatic victory for Nigeria.

The win means the two-time U20 World Cup finalists will secure a place in the Round of 16 if they avoid defeat against Colombia in their final group game on Monday.

Maruf Tunji Alausa, minister of education has reaffirmed Nigeria’s commitment to aligning education with labour market realities.

He noted this during a side event in New York themed: ‘Skills-to-Jobs: Strengthening Nigeria’s workforce systems for economic growth’ which was geared towards reaffirming Nigeria’s leadership in global workforce and education transformation.

‘Our vision is to ensure that every Nigerian learner is not only acquiring knowledge but also future-ready skills that unlock decent work opportunities. By strengthening the connection between classrooms and careers, we are laying the foundation for inclusive growth and national prosperity,’ Alausa said.

The side event was organised by the Federal Ministry of Labour and Employment (FMLE) in partnership with the National Identity Management Commission (NIMC), Tech4Dev, Semicolon Africa, and Avaara Partners, the high-level gathering convened policymakers, private sector leaders, development partners, and innovators to showcase Nigeria’s bold steps in linking education, skills, and employment for sustainable growth.

65% of Nigerian employers cite skills gap as a barrier to organisational transformation

Nkeiruka Onyejeocha, minister of State for Labour and Employment, also emphasised the government’s determination to deliver systemic workforce reform.

‘The future of work demands bold action. Our ministry, is investing in systems that prepare young Nigerians for the jobs of tomorrow, building bridges between skills providers, employers, and industries to ensure that no talent is left behind,’ she stated.

The first high-level panel explored policy reforms, digital infrastructure, and opportunities in the creative and green economy.

The key contributors included Rimamskeb Nuhu, special assistant to the vice president on Strategy and Policy, Moriam Ajaga, special adviser to the president on Art and Culture, Barr. Ismaeel Ahmed, executive chairman, Presidential CNG Initiative, Olumbe Akinkugbe, executive director, Galaxy Backbone and Sam Immanuel, CEO, Semicolon Africa.

A second panel examined skill-to-job linkages with insights from Rosy Fynn, country director, Mastercard Foundation Nigeria, Victoria Strokov, program manager, Partnership for Economic Inclusion at HSPGE), Oladiwura Oladepo, executive director, Tech4Dev and Sanyade Okoli, special adviser to the President on Finance and the Economy. Okoli stressed that reforms must translate into livelihoods, noting,

‘Finance must show up on payslips, not just in statistics. That is why we are linking innovation, credit, and social protection directly to employment outcomes so that every investment fuels opportunities for young Nigerians.

The event featured an interactive dialogue featuring youth voices, development partners, and private sector leaders. Discussions reinforced Nigeria’s commitment to closing the training-to-employment gap, strengthening cross-sector partnerships, and advancing reforms under the Renewed Hope Agenda.

By aligning education, skills development, and labour policies, Nigeria is not only positioning its youth for the jobs of tomorrow but also cementing its influence in shaping the global future of work.

As fuel prices fluctuate, the foreign exchange market remains volatile, and government policies shift with little notice, many small and medium-sized enterprises (SMEs) in Nigeria remain uncertain of their next move.

Despite accounting for 96 percent of all businesses, contributing 48 percent to national GDP, and providing 84 percent of employment, SMEs face a complex and demanding operating environment.

Long-term survival remains a significant challenge, with only 5 to 20 percent making it past the five-year mark, according to the Small and Medium Enterprises Development Agency (SMEDAN). These pressures continue to constrain the growth potential of one of the country’s most vital economic segments.

Sopirinye Millar-Jaja, management systems analyst at Phillips Consulting Limited, said, ‘This is where business continuity becomes essential. It’s more than just disaster recovery; it’s a proactive approach to ensure critical operations continue, even in the face of unexpected disruptions.’

‘Whether it’s a power outage, cash crunch, or policy change, continuity planning helps businesses bounce back quickly with minimal downtime. Simply put, it’s about ensuring the company keeps going, no matter what,’ she said.

Many Nigerian SMEs operate without safety nets, emergency funds, or backup systems. The impact of the recent naira redesign, fuel shortages, and sudden regulatory shifts has demonstrated just how vulnerable small businesses are.

To build resilience in this unpredictable environment, SMEs must take small but deliberate steps. Continuity planning is about knowing your business well enough to protect what matters most. Here are six lessons that offer a practical path forward for SMEs seeking to prepare, adapt, and stay operational amid uncertainty:

Understand and map your critical operations: The first step is awareness. SMEs must identify the parts of their business they can’t afford to lose. This Business Impact Analysis (BIA) doesn’t have to be complex; it’s listing key products, services, people, and processes, and asking: If this stopped today, how long could I stay afloat? For instance, a logistics business should have a fuel backup plan or alternative transport options mapped out to maintain delivery timelines during scarcity.

Don’t rely on just one source: In a volatile economy, diversification is a survival tactic. Over-dependence on a single supplier, payment method, product, or major client is a fast track to collapse. SMEs should source from more than one vendor, offer multiple payment options (bank transfer, POS, USSD, QR codes), explore alternative sales channels like WhatsApp storefronts, and look into digital exports if their offerings have diaspora appeal. Business continuity means having options and flexibility.

Embrace technology for flexibility: Simple digital tools can make a significant difference during disruptions. Technology ensures businesses stay connected, remain organised, and can continue service delivery even when things are unplanned. SMEs can leverage WhatsApp Business for orders, Google Drive for business records, and diverse digital payment methods like USSD and POS (now used by 45 percent of Nigerian adults for digital transactions) to keep operations fluid. Medium-sized businesses can benefit from cloud tools like Microsoft 365 or basic accounting platforms for remote financial tracking.

Build a financial buffer, even if it’s modest: Since disruptions come with immediate costs (repairs, stock replacement, salary coverage), a small financial cushion can be the difference between shutting down and staying open. SMEs should set aside a portion of profits monthly, cut back on non-essential spending, and explore cooperative or micro-savings platforms. Being financially equipped is essential for handling unexpected challenges.

Train your people and build leadership depth: A plan is useless without people who can execute it. Operations should not pause just because the founder is unavailable. SMEs must cross-train staff, enabling them to step into each other’s roles. This includes creating a basic crisis communication plan (who notifies customers/partners), sharing access to key tools with trusted team members, and fostering a culture of responsibility. Prepared systems are important, but so are prepared people.

Document and communicate your continuity plan: A disruption often escalates because teams are unsure what to do. The plan doesn’t need to be technical; it can be a simple checklist outlining steps for common disruptions like payment platform failures, staff absence, or inflation-driven price hikes. What matters is clarity. Who to contact first? What are the backup options? Where are essential documents stored? The plan must be shared, understood, and easy to activate by staff, partners, and vendors to be effective.

After 65 years of independence, Nigeria’s over-dependence on imports has stalled its transformation from an agrarian economy to an industrial one.

After gaining independence in 1960, the Nigerian government implemented the Import Substitution Policy to curb import dependency, create jobs, and preserve foreign exchange, marking a strategic shift towards industrialisation.

This was seen as a diametrically superb policy that was targeted at transforming the country from an agrarian to an industrial economy.

However, the policy failed because early policy-makers believed that protectionism was a cure-all for the country’s fledgling economy.

Since then, past governments have adopted various policies aimed at reducing over-dependence on imports, creating a high number of local jobs and saving foreign exchange. Some of the policies are the Nigerian Enterprises Promotion Decree, Structural Adjustment Policy, Small and Medium Industries Equity Investment Scheme, National Industrial Revolution Plan, National Automotive Policy and the Export Expansion Grant.

But lack of implementation and continuity in the policies has slowed the progress of the country’s industrial revolution.

According to the National Bureau of Statistics (NBS), growth in the manufacturing sector grew to 1.6 percent in the second quarter of 2025 from 1.28 percent in the same period in 2024.

Nnanyelugo Ike-Muonso, director-general of the Raw Materials, Research and Development Council (RMRDC), said that Nigeria must reduce its dependence on imported raw materials by at least 60 percent within the next five years if it is to become an industrial nation.

‘Over 70 per cent of manufacturing inputs used in our economy are imported. These data points expose a structural weakness,’ Ike-Muonso said in August at MAN’s equipment expo in Lagos.

‘We export our raw materials in their crude form, import in refined quality, and surrender jobs and value offshore before we have even begun,’ he said.

He argued that the country has the potential to industrialise rapidly, with over 120 commercially viable solid minerals, vast agricultural resources, and a large youthful population.

But Ike-Muonso reiterated that what is missing is ‘strategic coordination, bold implementation, and technology-backed commitment.’

While industrialisation has been a cornerstone of transformation in developed nations, Nigeria still lack the bustling facilities and vibrant industrial landscapes that characterise strong economies, despite its significant manufacturing capability and promising trajectories.

The availability of adequate infrastructure is also a major determinant of the success of every country’s industrial sector; however, Nigeria does not have adequate infrastructure to grow businesses, especially developed transport systems such as roads and railways connected to the nation’s seaports.

From Agbara industrial cluster in Ogun to Apapa in Lagos, roads are bad or inaccessible. Access roads to Apapa and Tin Can ports – Nigeria’s two main ports have continued to be nightmares for manufacturers and exporters. It is impossible to talk about infrastructure without discussing power. Energy is a key element of the production process. Nigeria’s inability to supply and distribute sufficient electricity has left businesses at the mercy of generators powered by diesel and petrol, whose prices have surged in recent months.

This raises the production costs for manufacturers significantly and forecloses their chances of competing with international peers.

According to the Manufacturers Association of Nigeria (MAN), manufacturers spend 40 percent of their total production cost on generating energy for their businesses.

Nigerian manufacturers suffered from a long-running shortage of foreign exchange and a sharp devaluation in 2024, which made doing business in the country complicated.

In 2024, the naira lost 40.9 percent of its value against the dollar in the official market despite notable growth in external reserves within the period, according to BusinessDay analysis.

The floating of the naira increased the official exchange rate from N463.38/$ on June 9 in 2023, to N1,500/$ as of October 3 in 2025.

The high cost of dollars and the implementation of a 7.5 percent value added tax on diesel imports have pushed its pump price to as high as N1,200 per litre.

The number of registered manufacturing firms with the MAN dropped from 4,850 in the early 1980s to 2,000 in 2010. From 2017-2024, more than 50 manufacturing companies have shut down.

Some of them are Surest Foam Limited, Mufex, Framan Industries, MZM Continental, Nipol Industries, Moak Industries, Stone Industries, Procter and Gamble, and GlaxoSmithKline, among others.

Regulation is a major issue hurting the sector. In Nigeria, Africa’s most populous country, agencies of the government work at cross-purposes.

For instance, the Standards Organisation of Nigeria (SON) does not accept tests done by the National Agency for Food and Drug Administration and Control (NAFDAC) and vice versa. Worse still, their responsibilities overlap. Similarly, local or state governments do not accept agreements by the Federal Government, particularly when it has to do with money or taxes.

Nigeria is cash-strapped due to low oil prices and high debt servicing. This is hurting the country’s capacity to fund projects and critical sectors.

However, the pool of funds from the CBN and development finance institutions is stashed in banks, which are sometimes unwilling to lend to businesses due to what they call the ‘high-risk level’ of lending to businesses in Nigeria.

Consequently, several manufacturers have complained that they cannot access most funds advertised by the government.

While some manufacturers have accessed funding from the CBN, Bank of Industry and others, however, the funds are not easily accessible by all players.

Sarah Mullally has been named the new Archbishop of Canterbury, becoming the first woman to lead the Church of England in its nearly 1,500-year history.

Her appointment, confirmed on Friday by King Charles III after a formal selection process, marks a watershed moment for the Anglican Communion, which counts around 85 million members worldwide. Mullally, 63, will serve as the 106th Archbishop of Canterbury, succeeding Justin Welby, who stepped down earlier this year following a damning abuse scandal.

‘The responsibility is huge, but I feel peace and trust in God to carry me,’ Mullally, a former nurse and later Bishop of London, said in her first public statement after the announcement. Prime minister Keir Starmer welcomed her appointment, describing the Church of England as ‘part of the fabric of our communities’ and expressing confidence that Mullally would play ‘a key role in our national life.’

Mullally’s elevation comes at a turbulent time for the Church. Her predecessor, Welby, resigned after an independent inquiry found that senior church figures had covered up decades-old abuse by John Smyth, a barrister who ran evangelical summer camps in the 1970s and 1980s. At least 130 boys and young men were said to have suffered at Smyth’s hands. He died in South Africa in 2018 while under investigation, never facing criminal charges.

The scandal has fuelled calls for deep reform within the Church of England, whose supreme governor is the British monarch. Once the spiritual backbone of national life, the Church now counts around 20 million baptised members but fewer than one million regular worshippers. Mullally’s appointment also signals the Church’s evolving stance on women in leadership. The Church of England began consecrating women bishops in 2014, following decades of debate, although other Anglican provinces, such as the United States, had taken this step decades earlier. Mullally herself became the first female Bishop of London in 2018, the third-highest post in the English hierarchy. Mullally is a former cancer nurse who worked as England’s Chief Nursing Officer in the early 2000s, while also being ordained as a priest in 2002. She became one of the first women to be consecrated as a bishop in the Church of England in 2015.

‘There are great commonalities between nursing and being a priest. It’s all about people, and sitting with people during the most difficult times in their lives,’ she once told a magazine.

She has advocated for creating an open and transparent culture in churches which allows for difference and disagreement, and has spoken on issues including the cost-of-living crisis, healthcare, and social justice.

Today, more than 40 of England’s 108 bishops are women, with women making up a similar proportion among priests. The office of the Archbishop of Canterbury is one of Britain’s most historic. The first incumbent, Augustine of Canterbury, was appointed in the late sixth century. The role became central to national life after King Henry VIII established the Church of England in the 1530s, thereby breaking with the Roman Catholic Church.

Mullally’s selection was the outcome of a lengthy process led by a committee under a former head of MI5, reflecting the position’s political as well as spiritual weight. Her leadership will stretch far beyond England, with the Archbishop of Canterbury regarded as the symbolic head of global Anglicanism.

The challenge before her is twofold: to restore trust in an institution shaken by scandal and to offer direction in a society where faith holds a diminished but still powerful role.