Category: Business Day

Super Eagles head coach Eric Chelle has named a strong starting XI for Nigeria’s crucial 2026 FIFA World Cup qualifier against Lesotho at the Peter Mokaba Stadium in Polokwane on Friday evening.

Goalkeeper Stanley Nwabali retains his place between the sticks as he targets a tenth clean sheet for the national team. In defence, Benjamin Fredrick starts at right-back in the absence of regulars Ola Aina and Bright Osayi-Samuel, while Bruno Onyemaechi takes his usual spot on the left. William Troost-Ekong and Calvin Bassey form the central defensive pairing. With Fisayo Dele-Bashiru and Raphael Onyedika sidelined through injury, Wilfred Ndidi and Alex Iwobi will anchor the midfield, looking to control possession and dictate play in the middle of the park.

In attack, Victor Osimhen leads the line alongside Tolu Arokodare. Ademola Lookman and Moses Simon provide width and creativity from the flanks.

Nigeria, currently chasing a maximum of three points to keep their 2026 World Cup qualification hopes alive, knows that a victory against Lesotho is vital before their final Group C clash against Benin Republic.

Confirmed Nigeria Starting XI vs Lesotho

Goalkeeper: Stanley Nwabali

With estimates suggesting that Nigeria needs around $100 billion in investments each year for the next decade to help improve its infrastructure, there’s a huge opportunity for positive change and economic growth. Many of us notice the everyday challenges, like power outages, busy health facilities, traffic congestion, and a shortage of affordable homes. These issues can present challenges that sometimes slow down progress, making it more difficult for businesses to thrive and for Nigeria to compete on a global level. However, they also highlight areas where targeted investments and innovative solutions can make a real difference for our communities and our economy.

For years, the government has attempted to bridge this gap through budgetary allocations and borrowing from both domestic and foreign sources. While these efforts are commendable, they have proven insufficient. The reality is apparent: Nigeria cannot rely on public finance alone. Mobilising private capital, especially from institutional investors, is one of the sustainable pathways to financing infrastructure that will power our economic growth.

Pension funds and opportunities in infrastructure

Among global private capital pools, pension fund assets are particularly well-suited for investments in infrastructure. As managers of long-term savings, pension fund capital is naturally aligned with the nature of long-term capital infrastructure investment requirements. Moreover, investment in infrastructure assets can deliver steady, inflation-linked cash flows over an extended period. Globally, infrastructure has evolved into a defensive asset class, enhancing yields, diversifying portfolios, and providing essential services.

In Nigeria, despite the modest growth in infrastructure investments, this potential remains somewhat underutilised. According to the Pension Funds Operators Association of Nigeria’s (PenOp) recent flagship Infrastructure report [RA1], pension fund investment in infrastructure is still around 1.3 percent of total assets under management, even though regulations permit allocations of up to 10 percent. Historically, pension fund administrators have been cautious, citing concerns around project bankability, regulatory bottlenecks, and the overarching responsibility to safeguard contributors’ capital.

The inaugural PenOp Infrastructure Report provides valuable insights into how pension fund managers perceive the infrastructure asset class. The findings are instructive. Half of the fund managers surveyed identified the lack of bankable projects as the most significant barrier to investment. At the same time, 55 percent believe that infrastructure is the most attractive alternative asset class, and more than half are actively scouting opportunities. The report makes it clear that while challenges remain, there is a strong appetite within the pension fund industry to channel more capital into infrastructure, provided the right conditions are in place.

Opportunities for growth, challenges to overcome

Infrastructure investment is about enabling growth and improving lives. The PenOp report highlights power and transport sectors as the most attractive destinations for pension fund investment, given their direct impact on industrialisation, trade, and productivity. There is also rising interest in agriculture and healthcare – two sectors critical to Nigeria’s human and food security. Agriculture requires modern storage, logistics and irrigation systems to unlock its potential, while healthcare needs upgraded facilities to meet the demands of a growing population.

Still, unlocking pension fund capital for infrastructure will require deliberate action. The report underscores the importance of credit enhancements to mitigate risks, transparent and consistent project execution to build confidence, and regulatory reforms and tax incentives to encourage investment. Nigeria needs a wider ecosystem of de-risking instruments, policy consistency, and credible pipelines of investable projects to crowd in pension capital.

Stanbic IBTC as a viable infrastructure financing conduit

Stanbic IBTC Infrastructure Fund continues to play a catalytic role in infrastructure investment while advancing dialogue, transparency and knowledge-sharing within the industry. We are convinced that access to credible data on projects is vital for informed decision-making about the broader infrastructure asset class.

At Stanbic IBTC Asset Management, we prioritise curating value-creating and value-enhancing projects underpinned by sustainability and impact themes that deliver on critical outcomes to investors and other stakeholders.

Stanbic IBTC Infrastructure Fund has taken a lead on infrastructure financing in Nigeria, having supported projects with a cumulative value of ?280 billion since inception. Aggregate revenues of the sponsors that Stanbic IBTC Infrastructure Fund has supported since inception are in excess of ?900 billion. The Fund has made cash returns of over 35 percent to its investors, and its unit price has appreciated by 13 percent from ?100 per unit at inception to ?113 per unit as of 30 June 2025. In under four years of operation, the Fund has paid over ?24 billion in cash distributions to investors from a capital base of ?70 billion. Projects financed by the Fund have significantly impacted local communities, generating over 5,000 direct and indirect jobs across various sectors. In addition to boosting employment, investments in road infrastructure under the RITC scheme have enhanced public infrastructure, providing reliable transport solutions to commuters and delivering essential healthcare services to individuals.

In 2025, we launched our ?350 billion Stanbic IBTC Infrastructure Growth Fund (SIIGF) – the core mandate is to provide equity investment into infrastructure projects in Nigeria and Pan Africa. Our pipeline of infrastructure investment remains robust as we continue to mobilise domestic institutional capital as well as foreign capital at scale. With each of our projects, we are supporting the creation of a pathway to sustainable financing of infrastructure projects, reducing reliance on external borrowing, stimulating industrialisation, and improving the quality of life for millions of Nigerians. Achieving this requires coordinated action from government, regulators, development finance institutions (DFIs), and the private sector to create an enabling environment that gives pension funds the confidence to participate in infrastructure investment. This is too important a task to be left to any one stakeholder.

Investors who placed early bets on the Nigerian Exchange’s ICT stocks have seen some of the strongest returns in 2025, outpacing nearly every other sector as digital infrastructure investment and renewed optimism around tech-driven growth lift valuations across the board.

As of October 8, a N1 million investment made at the start of the year in NCR Nigeria would now be worth N3.2 million, while eTranzact would have grown to N2.46 million, CWG Plc to N2.17 million, and MTN Nigeria to N2.13 million, according to NGX trading data. Chams Holding would have risen to N1.8 million, and Omatek Ventures to N1.64 million, reflecting a powerful rebound in Nigeria’s listed technology ecosystem.

Taken together, these ICT firms have posted an average year-to-date gain of about 139 percent, far outperforming the NGX All-Share Index, which has gained around 40.9 percent so far this year. The sector’s sharp rally underscores how investors are shifting toward growth-oriented counters, betting on Nigeria’s accelerating digital transformation and sustained telecoms expansion.

The NGX ICT Index has been buoyed by a combination of earnings recovery, increased adoption of digital payment systems, and ongoing infrastructure spending by telecoms and fintech. MTN Nigeria, already a telecommunications giant, has benefited from robust data revenue and recent tariff adjustments. At the same time, smaller-cap players such as eTranzact, CWG, and Chams Holding have rallied sharply on speculative inflows and expectations of new digital service contracts.

The year’s standout performer has been NCR Nigeria, whose share price ballooned 220 percent, from N5 in January to N16 by October 8, on the back of strong order books and renewed investor confidence in its systems integration and fintech hardware business. eTranzact’s stock jumped 146 percent to N16, and CWG more than doubled to N17.55. Chams Holding gained 132 percent, while Omatek Ventures advanced 82 percent.

The surge in ICT valuations has stirred debate over how long the rally can last. Analysts note that liquidity from domestic institutional investors, coupled with limited foreign participation, has amplified price movements in thinly traded names. Still, sentiment remains broadly positive, with most brokers highlighting the sector’s resilience and earnings visibility.

With the federal government prioritizing broadband expansion, cashless payments, and artificial intelligence integration in public services, technology remains a central pillar of Nigeria’s medium-term economic strategy. As 2025 enters its final quarter, investors are watching whether ICT stocks can sustain their momentum amid profit-taking pressures and a shifting interest-rate environment.

Regardless of short-term corrections, the ICT sector’s 2025 performance has cemented its status as one of the Nigerian Exchange’s biggest success stories and evidence of how digital growth is reshaping Nigeria’s investment landscape.

At the 31st Nigerian Economic Summit (NES #31) taking place in Abuja, Oluseye Olusoga, group managing director of Parthian Group, joined leading policymakers and business executives to champion Pan-African capital market, strategic pension fund collaboration during an interactive panel discussion on ‘Future-Proofing Investments: Stability in Volatility.’

The session focused on rebuilding investor confidence in Nigeria through transparent, stable, and credible policymaking amid ongoing reforms in foreign exchange management, fiscal consolidation, and governance.

Olusoga emphasised that while policy inconsistency has historically deterred investment, the greater challenge lies in poor communication of policy intent and weak stakeholder engagement.

‘Cohesive policymaking and effective communication from the government will help create the right environment for businesses to thrive,’ he stated. ‘If an investor sees that we are investing in our own country, and can see the returns, they will follow. The government must not only create the right policies but also communicate them clearly to inspire confidence.’

He further noted that Nigeria stands at a critical reflection point, urging policymakers to optimize existing initiatives before launching new ones. According to him, stability and clarity will form the foundation for sustained capital inflows and economic resilience.

Expanding on regional opportunities, Olusoga spoke on the African Continental Free Trade Agreement (AfCFTA) and its potential to unlock transformative growth through collaboration among African financial institutions:

‘I look forward to a future where we are truly Pan-African. Imagine if pension funds like Parthian Pensions in Nigeria and similar institutions in other countries jointly financed critical infrastructure projects along regional corridors; that kind of cooperation would drive real economic development.’

He highlighted how evolving capital market frameworks can enable cross-border trading of African securities, calling for further reforms to address currency fungibility and other barriers to regional financial integration.

‘Once these challenges are resolved, Africa will become a far more attractive investment destination, with shared prosperity across borders,’ he added.

Nigeria’s central bank has opened a new chapter in its monetary policy playbook, cutting its benchmark interest rate for the first time in five years and signalling a gradual pivot from a long spell of tightening to a more balanced stance aimed at sustaining disinflation, stabilising the naira, and boosting investor confidence.

The Monetary Policy Committee (MPC), after its 302nd meeting in Abuja on September 23, lowered the Monetary Policy Rate (MPR) by 50 basis points to 27 percent. The modest cut, though cautious, marks the first tangible shift from aggressive tightening since 2020.

‘Nigeria’s move, analysts say, is part of a global shift from aggressive tightening to a cautious easing cycle as inflation cools and economies adjust to post-pandemic normalisation.’

The decision underscores confidence in recent macroeconomic gains-slowing inflation, stronger foreign exchange inflows, and a resilient external reserve position-that have allowed policymakers to begin a controlled easing cycle without jeopardising price stability.

Governor Olayemi Cardoso, unveiling the Committee’s decisions, said the policy adjustment reflects the improving inflation outlook and a broader macroeconomic environment that supports credit growth and private sector expansion.

‘The Committee’s decision to lower the monetary policy rate was predicated on the sustained disinflation recorded in the past five months, projections of declining inflation for the rest of 2025, and the need to support economic recovery efforts,’ he said.

The move, which also adjusted the Standing Facilities corridor around the MPR to a +250/-250 basis points and raised the Cash Reserve Requirement (CRR) for commercial banks to 45 percent, comes as the Central Bank continues its cautious transition from unorthodox to orthodox policy frameworks. The MPC retained the CRR for merchant banks at 16 percent and kept the liquidity ratio unchanged at 30 percent.

A calculated pivot

For much of the past two years, Nigeria’s monetary policy has been dominated by aggressive rate hikes aimed at taming inflation that peaked above 28 percent in early 2024. But the landscape has shifted dramatically. Headline inflation dropped to 20.12 percent in August from 21.88 percent in July, marking the fifth consecutive month of decline, according to the National Bureau of Statistics (NBS).

The naira, which had come under severe pressure in 2023, has appreciated steadily, trading at an average of N1,530 per dollar in early September, supported by a 26 percent year-on-year increase in foreign exchange inflows and the bank’s disciplined FX management.

With these gains, the MPC judged there was sufficient policy space to ease monetary conditions slightly and support the real economy, particularly credit access for businesses. ‘The stability in the macroeconomic environment offered some headroom for monetary policy to support economic recovery,’ the Committee said in its communiqué.

Analysts say the 50 bps rate cut-though modest-was symbolic, breaking a cycle of relentless tightening and signalling a forward-looking approach under Cardoso’s leadership.

‘By lowering the benchmark rate, the MPC made a modest but meaningful move,’ said Bukola Bankole, partner and corporate finance expert at TNP. ‘For businesses already borrowing at rates above 30 percent, this adjustment will not ease financing costs immediately, but it signals recognition that growth cannot be perpetually stifled in the name of inflation control.’

The decision aligns with global trends. The U.S. Federal Reserve lowered its benchmark rate in September by 25 bps, citing labour market concerns. The Bank of England also trimmed rates in August to 4 per cent amid slowing growth, while the European Central Bank held steady after cumulative cuts earlier in the year.

Nigeria’s move, analysts say, is part of a global shift from aggressive tightening to a cautious easing cycle as inflation cools and economies adjust to post-pandemic normalisation.

Investor confidence and FX stability

Perhaps the most significant backdrop to the MPC’s pivot is the sustained stability in the foreign exchange market. The naira has remained relatively firm for weeks, bolstered by increased dollar liquidity and the Central Bank’s decisive actions to sanitise the FX market. Inflows have been buoyed by improved oil production, stronger export earnings, and steady remittances.

Cordros Securities analysts said the MPC’s actions will further reinforce investor confidence. ‘The Committee considered recent global shifts toward monetary easing and the prospect of further policy accommodation. This should be positive for capital flows into emerging and frontier markets, including Nigeria, adding an additional layer of support to engender continued exchange rate stability,’ they wrote in a post-meeting note.

For the CBN, sustaining FX stability remains a central pillar of its strategy. ‘The Committee acknowledged the continued stability of the foreign exchange market and its critical importance in achieving rapid disinflation,’ the communiqué stated, urging the Bank to continue implementing policies that boost capital inflows and deepen FX liquidity.

Cardoso echoed this view, emphasising that stability in the FX market is essential to sustaining investor confidence. ‘As we shift from unorthodox to orthodox monetary policy, the CBN remains committed to restoring confidence, strengthening policy credibility, and staying focused on its core mandate of price stability,’ he said.

Managing disinflation and growth

The CBN’s decision to ease policy is supported by data showing a clear downward trend in inflation. The deceleration has been underpinned by several factors-exchange rate stability, moderation in fuel prices, increased agricultural supply during the harvest season, and a stronger current account balance.

Food inflation, a persistent driver of Nigeria’s headline rate, also declined both on a year-on-year and month-on-month basis, offering further comfort to policymakers. ‘This easing in food inflation is a positive signal for the MPC,’ said Ifeanyi Ubah, head of research at Commercio Partners. ‘It gave the MPC greater confidence to implement a rate cut.’

The Bank, however, remains cautious. While inflation has slowed, the MPC flagged the build-up of excess liquidity in the banking system, driven largely by higher fiscal disbursements, as a potential risk to macroeconomic stability. To counter this, it widened the standing facilities corridor and imposed a 75 percent CRR on non-Treasury Single Account public sector deposits.

‘This adjustment is meant to strengthen liquidity management and reinforce the TSA regime,’ Cardoso explained. ‘The goal is to maintain balance-supporting growth without undermining stability.’

Evolving policy framework

The latest policy actions reflect a broader strategic recalibration at the Central Bank. Since assuming office, Cardoso has pledged to restore orthodox monetary management and strengthen the Bank’s credibility. The CBN is moving toward a formal inflation-targeting framework, aligning with international best practice.

During the Monetary Policy Forum held earlier this year, Cardoso reiterated that the CBN’s primary focus is to sustain price stability and restore purchasing power. ‘Managing disinflation amidst persistent shocks requires not only robust policies but also coordination between fiscal and monetary authorities to anchor expectations and maintain investor confidence,’ he said.

The Bank has also taken steps to fortify the financial system. New minimum capital requirements for banks, effective March 2026, aim to ensure resilience and position the sector for Nigeria’s $1 trillion economy ambition.

‘The reforms and policy decisions are part of a coordinated effort to strengthen monetary control, improve liquidity management, and create an enabling environment for inclusive economic growth,’ Cardoso noted.

Market reactions and outlook

Investors and analysts welcomed the MPC’s decision as a positive signal, though many stressed the importance of consistency and communication. ‘This cut could truly mark the beginning of a more sustainable policy mix that supports growth without abandoning the fight for price stability,’ said TNP’s Bankole. ‘But without predictable policy, stronger fiscal alignment, and structural reforms that address the root causes of inflation, this move will remain largely symbolic.’

Bismarck Rewane, managing director of Financial Derivatives Company, expects the easing cycle to extend into the festive season. ‘The remainder of 2025 appears poised for stronger performance, with foreign currency inflows and stable commodity prices providing support,’ he said. ‘The naira should remain stable around N1,500-N1,550 per dollar, and headline inflation could ease to 20 percent. The MPC is also likely to cut rates again in November, sustaining optimism into the festive season.’

Rewane noted that the rate cut will marginally reduce the government’s debt service burden while keeping yields attractive enough to sustain foreign portfolio inflows. That balance, analysts say, will be critical as Nigeria continues to rely on offshore participation to deepen liquidity and stabilise its currency.

Cordros analysts shared similar optimism. ‘We expect the Committee to remain cautious, balancing growth-supportive measures with its core mandate of maintaining price stability,’ they said. ‘Monetary easing will likely be carefully calibrated to ensure that interest rates remain competitive enough to attract capital inflows and anchor inflation expectations.’

Global context and domestic risks

The CBN’s pivot comes as central banks across major economies weigh the delicate balance between cooling inflation and avoiding recession. In the U.S., the Fed’s September rate cut reflected a shift in focus from inflation risks to rising unemployment. In the U.K., the Bank of England paused after one cut, citing subdued growth but lingering inflation pressures. The European Central Bank, too, opted for caution, keeping rates steady in September after a cumulative 100 bps easing earlier in the year.

Nigeria’s challenge, however, remains uniquely structural. Inflation is largely cost-push, driven by exchange rate pass-through, high energy costs, and supply chain disruptions rather than excessive demand. These factors limit the efficacy of monetary tightening as a sole inflation-fighting tool. Hence, the MPC’s gradual easing reflects recognition that the path to sustained stability requires coordination between fiscal and monetary authorities.

While the rate cut is expected to support credit expansion and investment, economists warn of potential headwinds. Excess liquidity from fiscal releases, volatile oil revenues, and external shocks could complicate monetary transmission. Yet, for now, the policy direction suggests cautious optimism.

The road ahead

With inflation easing and the naira strengthening, Nigeria’s monetary authorities are entering a critical phase-one that tests whether gradual easing can reinforce growth without reigniting inflationary pressures. The MPC’s credibility, communication, and consistency will be pivotal in shaping investor sentiment and sustaining FX stability.

The CBN’s bet is that the recent disinflation trend and stable currency will persist long enough to justify further rate cuts, unlocking cheaper credit and stimulating investment. ‘The real test’, said Bankole of TNP, ‘is whether inflation continues to ease and whether the naira can achieve meaningful stability.’

For now, the signals are encouraging. Foreign exchange inflows are rising, oil output is improving, and consumer sentiment is recovering modestly. December’s traditionally active spending season, driven by diaspora remittances, tourism, and festive activities, could provide further support for growth.

But as Cardoso himself acknowledged, achieving durable macroeconomic stability requires sustained vigilance. ‘Our focus must remain on price stability, the planned transition to an inflation-targeting framework, and strategies to restore purchasing power and ease economic hardship,’ he said.

As Nigeria’s central bank charts its way through a delicate policy transition, investors are watching closely. The easing cycle, however modest, represents both a policy recalibration and a confidence signal-one that could define the trajectory of Africa’s top crude producer in the year ahead.

Anthonia Ani looks forward to July with expectation. It is around the time that secondary schools in the Kwamba local government of Niger State hold ceremonies for graduating students, and her small store, offering food items needed to prepare the day’s ‘Item 7,’ was a popular destination for them, some of whom had become ‘regular customers’.

Ani’s goods are part of the many goods loaded onto trucks that leave Onitsha’s main market, a sprawling square where everything from textiles, electronics, cosmetics, to food items is traded. From there, goods snake their way through the country, feeding small shops like hers.

‘It’s the peak season of our business,’ said Ani, who runs the shop with her husband. But this year was disappointing. She told BusinessDay that she didn’t experience sales as usual, as schools and other consumers cut down on spending to save costs.

‘Anybody coming now will say that they just have to manage what they have,’ she said. ‘In fact, they are not inviting parents for the graduations anymore, they want only the graduates. The amount of spices and the condiments they bought compared to what they need has dropped.’

Ani’s experience is not isolated and rather reflective of a cautious population who, with rising prices and limited income, realise they can no longer afford what they used to, and now seldom visit the market.

The output of Nigeria’s trade sector is on a downward slope for the third straight quarter, according to the latest GDP figures released by the National Bureau of Statistics. And compared to last year, it experienced a slowdown in the first half.

Output dropped from 2.04 per cent between September and December 2024 to 1.78 per cent in the first quarter of 2025. By the second quarter, it headed downwards once more to a 1.29 per cent growth.

The sector’s GDP growth in the first half of the year dropped by 0.53 per cent compared to last year, stunting its contribution to total GDP.

Experts say low consumer purchasing power, influenced by double-digit inflation, has discouraged big purchases from micro, small, and medium enterprises (MSMEs)-which make up per percentage of Nigerian businesses.

‘We have weak consumer demand at the moment,’ said Femi Egbesola, president of the Association of Small Business Owners Association of Nigeria (ASBON). ‘Even though data shows there’s a form of stability, inflation (rate currently at 20.12) is still very high compared to other nations. And because inflation is high, the take-home of an average worker is low in terms of purchasing power.’

He said that people now buy less than they used to and concentrate on basic needs. ‘And for that reason, the trade would definitely slow down because the demand slows down.’ Victoria Babalola, a Lagosian, is one of those people who have watched their purchasing power slip despite earning three times the country’s minimum monthly wage of N70,000, a salary which many Nigerians, especially in the informal sector, still earn below.

Her salary has not changed, but food prices have.

‘Foodstuffs are more expensive now compared to last year,’ she told BusinessDay. ‘The money you used to buy one kilo of chicken one year ago might only buy you half a kilo now.’ A bowl of custard, which she enjoys, now costs 100 per cent more than it did a year ago. Her appetite has had to adjust to the times. ‘I don’t even order out anymore,’ she said.

She now spends with caution, leaving just enough money in the bank in case of rainy days. ‘If life throws you lemons, you want to quickly make lemonade,’ she said.

Adeleke, like Babalola, considers himself a victim of the economy. A family man who leaves home to guard gates in Lekki, one of Lagos’s wealthy neighbourhoods, for a little over the minimum wage, he regrets not being able to buy as much as he could.

‘Before, I can buy one bag of rice. Now it’s very expensive, so I will just buy half bag. It’s not easy oh,’ he told BusinessDay. Low demand means traders are being forced to drop prices of their products to encourage patronage, squeezing their profit margins thin with little left to compensate for operational costs.

The journey from Onitsha comes with layers of added cost, including port charges and clearing fees in Lagos, where the goods sit for a week, incurring demurrage. This comes with haulage costs, which have surged with rising diesel and petrol prices.

Bad roads also increase travel time, truck maintenance, and the risk of goods being damaged or spoiled.

‘Transportation alone takes a greater part of what one can gain from the goods,’ Ani said. She told BusinessDay that even when food prices come down, her prices must remain up or else she runs into a loss.

As many businesses require adequate power to survive, many shops around here resorted to buying small fuel-powered generators to run their businesses, due to the unsustainable power supplied from the national grid, which comes with high electricity bills.

‘They say they prefer to buy the fuel at that high rate, than to be paid money for what they will not even make any profit out of it.’

Despite the band system introduced by the government to regulate tariffs, many of the vendors do not even know what band they are on or how much electricity they use, she confirmed. They are simply charged intermittently based on the size of their shops.

As for Ani, there are no more lights in her shop, not from the national grid or from a mobile generator. ‘I don’t need it,’ she claimed.

Egbesola pointed to how a cocktail of barriers, including high costs of importations, borrowing costs and currency devaluation, leaves many businesses in a tight place

He said they are now seeking locally sourced raw materials to replace those from the expensive port.s

‘They are also doing backward integration, and you know when we do less import, definitely trade will shrink,’ he said.

While the Central Bank insists that liquidity has improved, businesses say access is still limited and unpredictable. ‘Scarcity is still there, and you know when there’s scarcity, organisations, particularly manufacturing companies, will not be able to import in their raw materials, their equipment, as they should, and when that happens, their production will slow down.’

When production slows, there are fewer goods for wholesalers, distributors, and retailers to buy and resell. With fewer goods flowing through the economy, the trade sector’s margins shrink, which shows up as slower trade GDP growth.

Despite the drag, trade continues to dominate Nigeria’s GDP profile, contributing over 18 per cent in the latest rebased figures, ahead of sectors like crop production and manufacturing. Experts warn, however, that dominance should not be mistaken for resilience.

‘The implication is that if nothing is done, it will continue to reduce revenue that government is supposed to get, which will also rub off on infrastructural development and other social safety nets that it’s supposed to provide,’ Egbesola said.

If reforms succeed in easing the barriers-by widening access to foreign exchange, lowering borrowing costs, and creating consistent trade policies-activity could rebound. More trade would mean higher revenues for the government, healthier businesses, and stronger household spending power.

He said if trade can be supported to grow as it should, companies will make more money.

‘This money will trickle down to average Nigerians and to better the lot of our lives. You will see more activities, both businesses, both households, both socially will improve.’

The Global Center on Adaptation (GCA) on Friday launched the In-Country YouthADAPT demo day events under the African Adaptation Acceleration Program (AAAP).

Following this development, youth-led enterprises from Kenya, Tanzania, Rwanda, Ghana and Nigeria will over the coming weeks compete in a series of national demo day events.

The top 10 enterprises (two per country) will be awarded $30,000 grants and enrolled in a year-long acceleration and mentorship program, equipping them to attract long-term investment and scale their impact.

This development marks a significant milestone in empowering Africa’s next generation of climate entrepreneurs, providing them with investment, mentorship, and pathways to scale up their innovative adaptation solutions.

The Demo Day events are designed to bridge the financing gap for youth-led adaptation enterprises by linking them directly with domestic and regional private-sector investors.

Participating investors will gain access to a curated pipeline of high-potential enterprises through pitch sessions and private deal rooms, supported by transaction advisory and due diligence facilitation from the Kenya Climate Innovation Centre (KCIC) on behalf of GCA.

From a pool of over 500 applicants, up to 100 enterprises-approximately 20 per country-have been shortlisted to pitch their ideas before panels of distinguished jurists and investors. Their innovations span sectors critical to Africa’s climate resilience, including food security and resilient infrastructure. Each country’s event will showcase the ingenuity of young Africans tackling some of the continent’s most pressing climate challenges in agriculture and infrastructure with locally grounded, commercially viable solutions.

Patrick V. Verkooijen, President and CEO of the Global Centre on Adaptation, said: ‘Africa’s youth are not just victims of the climate crisis-they are architects of the solutions. Through our YouthADAPT challenge, we are turning their ideas into investable, impactful businesses.

‘This is practical climate leadership: aligning innovation with national priorities and NDCs, creating decent jobs and strengthening food systems and infrastructure where it matters most. I call on banks, development finance institutions, impact investors, and corporate partners to join us-so that by COP30 and beyond, we can scale these solutions to scale.’

Joseph Murabula, Chief Executive Officer Kenya Climate Innovation Centre said, ‘We all know that Africa’s greatest resource is its innovative, youthful population. We are moving beyond this rhetoric to action.

‘Through the In-Country YouthADAPT 2025 Challenge, we are providing African youth with the essential tools, including funding, mentorship, and market access, to turn their climate adaptation solutions into viable businesses. This is how we build climate resilience from the ground up, strengthening food security and critical infrastructure,’ he added.

Following the Demo Day series, final selections and investment commitments will be announced during COP30 in Brazil in November 2025, where the top ten youth-led enterprises will be showcased on the

A new player is emerging in Africa’s growing beauty-tech space. Dorasilk, founded by entrepreneur Onaopemipo Monica Akintunde, has unveiled what it calls the first Wig Revamp Ritual System, a structured care process designed specifically for wigs and donor hair.

Positioned at the intersection of science and beauty, Dorasilk’s approach applies technology and research to a segment often overlooked in the wider hair care industry. The system aims to help users maintain the quality, texture, and lifespan of their premium hairpieces.

‘We’re merging African beauty traditions with modern cosmetic science to create a new experience for women who invest in quality hair,’ Onaopemipo said. ‘Dorasilk is built on research and a commitment to make luxury care more accessible.’

According to market data, Africa’s wig and hair extension industry is valued at over $6 billion and continues to grow rapidly. Dorasilk’s patent-pending ritual system, registered with the UK Intellectual Property Office (UKIPO), positions it among the few beauty brands in the region focused on innovation-led formulation and user education. Onaopemipo, who launched the brand after years of frustration with limited wig care solutions, says her experience as both a consumer and researcher shaped Dorasilk’s creation. The company is headquartered in Abuja, which she describes as ‘a rising hub for African beauty innovation.

Dorasilk is currently raising $2 million in growth capital to support restocking, research and development, marketing, and distribution. The company says the funds will enable it to meet early demand, advance its proprietary complexes, and expand access across key African cities.

The brand has attracted significant early interest, with hundreds joining its waitlist within weeks of pre-launch. Dorasilk’s first retail collection is expected to roll out by November 2025.

Dorasilk is a beauty-tech company based in Abuja, Nigeria, developing technology-powered rituals for wigs and donor hair. The brand combines research, formulation science, and accessible luxury to create structured systems for hair maintenance and longevity.

Germany has not closed its doors to new citizens, but has chosen to ‘open them more slowly’ by ending its three-year fast track citizenship programme, while making it five years.

The decision reflects growing public unease over migration pressures across Europe, with concerns about the strain on housing, education, and public services fuelling political tension.

The pathway which was intended to enable well-integrated foreign residents to obtain citizenship in just three years, was rarely used. Of the roughly 300,000 naturalisations recorded in 2024, only a few hundred were granted under the fast-track clause.

The decision to close the fast-track pathway, represents a significant shift in the country’s approach to immigration and integration, signalling a firmer stance from the government led by Friedrich Merz, chancellor. A shift in citizenship policy

The programme was introduced under Olaf Scholz, the former chancellors’ coalition government to reward exceptional integration. It allowed foreign nationals who demonstrated advanced language skills, civic engagement, or strong professional or academic achievements to apply for citizenship after only three years.

The fast-track route was designed to make Germany more attractive to skilled professionals already contributing to society. Applicants had to show advanced proficiency in German, evidence of voluntary or civic participation, and a strong professional or academic performance.However, Merz’s administration argued that citizenship should be the result of successful integration, not a tool to encourage migration.

‘A German passport must come as recognition of a successful integration process, not as an incentive for illegal immigration,’ Alexander Dobrindt, Germany’s interior minister told lawmakers. This sentiment boosted the far-right Alternative for Germany (AfD) party, which gained traction by calling for stricter immigration controls.

Now members of the coalition have defended the reversal, arguing the clause had minimal effect. ‘Its removal doesn’t change the essence of the citizenship law,’ a German lawmaker noted. Broader implications

Despite tightening its rules, Germany continues to face a demographic challenge. The ageing population and labour shortages in key sectors such as healthcare, construction, and technology remain critical concerns.

Critics warn that eliminating the fast-track pathway could make Germany less competitive in attracting international talent at a time when countries like Canada and Australia are streamlining citizenship processes.

Filiz Polat, Member of Parliament (MP) warned, ‘Germany is competing for the best minds in the world. If those people choose Germany, we should do everything possible to keep them.’

What changes for immigrants

Under the new framework, the three-year fast-track route is abolished, meaning that all applicants must now follow the standard process.

The five-year route remains available to those who meet integration and language requirements.

The dual citizenship route is still permitted, allowing immigrants to retain their original nationality.

The road ahead

For most immigrants, the pathway to citizenship now takes five years, or eight years for those who do not meet the integration benchmarks. While the government has removed the accelerated route, other reforms from the Scholz era, such as allowing dual citizenship and simplifying applications remain in place.

More than 700 Nigerians have become homeowners in just six months, marking early success for a landmark mortgage reform programme championed by the Federal Government through the Ministry of Finance Incorporated (MOFI).

The initiative aims to tackle Nigeria’s chronic housing crisis, which has left millions locked out of ownership due to high interest rates, limited access to credit, and a housing deficit estimated at over 28 million units.

Speaking on the initiative, Wale Odutola, CEO of ARM HoldCo, said MREIF represents the type of collaboration needed to deepen Nigeria’s housing finance system.

‘MREIF embodies the kind of partnership Nigeria has long needed-government resolve combined with private sector rigour,’ Odutola said. ‘Together with MOFI, we are laying the structural foundation for a housing sector that rewards citizens, unlocks investor confidence, and drives inclusive growth.’

As the heart of the reform, MOFI Real Estate Investment Fund (MREIF), a N1 trillion Securities and Exchange Commission-registered vehicle was created to provide long-term, affordable mortgages for ordinary Nigerians. The fund offers loans at 9.75 percent per annum with repayment periods of up to 20 years, a major shift from the double-digit lending rates that have long defined Nigeria’s mortgage market.

Since inception, MREIF has financed over 700 homebuyers through 11 Eligible Financial Institutions (EFIs) across five regions of the country. These include Abbey Mortgage Bank, Access Bank, FCMB, FHA Mortgage Bank, Gateway Mortgage Bank, Globus Bank, Imperial Homes Mortgage Bank, Infinity Trust Mortgage Bank, Living Trust Mortgage Bank, Nigeria Police Mortgage Bank, Providus Bank, Stanbic IBTC, and Union Bank.

Each mortgage represents a family transitioning from rent to ownership, a step that builds household wealth and stability.

The combination of government support, private-sector management, and transparent governance makes MREIF a stronger model than earlier public housing schemes.

The Federal Government committed N150 billion under Series 1 funding, fully subscribed in December 2024, while private investors contributed another N100 billion under Series 2. Additional tranches are expected to raise the fund to N1 trillion, ensuring sustainability. The fund is managed by ARM Investment Managers, providing professional oversight and accountability.

Beyond individual mortgages, MREIF supports developers through offtake guarantees, encouraging new construction, job creation, and expansion of the housing supply chain. It also provides a credible platform for diaspora Nigerians seeking secure real estate investment opportunities.

Although inflation, forex volatility, and high construction costs remain challenges, MREIF’s long-term and concessionary structure provides a cushion. With more financial institutions and investors expected to participate, the fund could help thousands more Nigerians move from renting to owning homes, turning one of Nigeria’s toughest socioeconomic challenges into an opportunity for inclusive growth.