Category: Business Day

First Lady, Oluremi Tinubu has charged Youths on the need to remain focused and work hard on their chosen careers for a better future.

Tinubu stated this in a message to the youths on the occasion of the 2026 International Youth Day, which holds every August 12.

The First Lady , while joining the global community in highlighting the significance of this year’s theme, ‘Different Contexts, Common Aspirations.’ notes that although young people come from diverse backgrounds and face different circumstances, they share common aspirations for quality education, meaningful employment, equal opportunities, and a more sustainable future.

‘I encourage our youth to remain focused and hardworking’.

The First Lady, through her humanitarian activities, has created dedicated programmes that promotes active youth participation in social, economic, and political life.

She urged young people to take advantage of the federal government’s investments in the educational sector to strengthen creativity, innovation, entrepreneurship, and active citizenship to pursue their dreams.

‘ Fulfil your potential, and help build a more peaceful and prosperous Nigeria.

‘As we commemorate this day, let us renew our commitment to supporting and empowering young people by creating opportunities for them to realize their full potential and contribute meaningfully to society, ‘ she stated.

The International Youth Day, observed annually on August 12 of every year, was established by the United Nations, to celebrate young people’s potential as partners in global society and raises awareness of the cultural and legal challenges they face.

The 2026 theme is ‘Different Contexts, Common Aspirations’ is used to also highlight hurdles like unemployment, limited education access, and inequality.

2026 Focus: Directs attention toward youth in vulnerable regions like Least Developed Countries (LDCs) and Small Island Developing States (SIDS).

The Abia State Government says it has deployed a digital application, known as ‘CYTrack’, to identify and monitor high-risk and teenage pregnancies, as part of efforts to reduce maternal and child mortality in the state.

Okey Kanu, the State’s Commissioner for Information, disclosed this on Monday while briefing journalists on the outcome of the State Executive Council meeting presided over by Governor Alex Otti.

Kanu said that the application, piloted by the State Ministry of Health, had been successfully used to track teenage pregnancies and monitor expectant mothers through delivery, with the aim of preventing avoidable maternal and child deaths.

‘The State’s Ministry of Health has piloted the application of a digital tool to identify and track high-risk pregnancies in order to reduce maternal and child mortality.

‘This is an app, referred to as CyTrack, which has been used to successfully track teenage pregnancies and monitor such teenage pregnancies up to delivery to prevent maternal mortality’, he stated.

The commissioner said that the deployment of the technology was part of the Otti-led administration’s reforms in the health sector, which he said have continued to produce measurable improvements in healthcare delivery across the state.

He said data from functionalised Primary Healthcare Centres (PHCs) also showed increased healthcare utilisation, particularly in outpatient visits and deliveries.

According to him, the first 50 functionalised PHCs accounted for more than 20% of the 1.067 million outpatient department visits recorded between July 2025 and June 2026.

Kanu disclosed that three additional PHCs had been functionalised between July 27 and August 7, bringing the number of functionalised centres in the state to 151, from the previous 148.

He added that another 25 equipped PHCs were scheduled for functionalisation within the next three weeks.

The Commissioner further announced that enrolment in the Abia State Health Insurance Scheme increased from 233,000 to 237,000 between July 27 and August 7.

He said that the Abiriba Community Improvement Union, North America Charter, had also committed to sponsoring more than 1,000 indigent persons under the informal sector of the health insurance scheme.

Kanu urged other communities and organisations to emulate the initiative and support vulnerable residents to gain access to healthcare services.

He also said that the State recorded no outbreak of diseases of public health importance during the period under review, listing Ebola, Lassa fever, COVID-19, diphtheria, cholera, mpox and yellow fever among the diseases monitored.

Kanu said that the health sector reforms had also attracted external recognition, citing a recent report by Philips Consulting and SBI, which ranked Abia 1st nationally in healthcare affordability and among the top three states in healthcare quality.

He described the recognition as an independent validation of the transformation recorded in the state’s health sector.

‘The ranking and recognition by Philips Consulting serves as an independent validation of Abia’s impressive transformation journey so far in the state’s health sector’, Kanu said.

Enoch Uche, a professor and Commissioner for Health, explained that the Cytrack application, developed from a pilot project using Google technology, captures key demographic and pregnancy information, including a woman’s age and last menstrual period, which enables health workers to identify high-risk pregnancies and determine expected delivery dates and antenatal care schedules.

According to Uche, teenagers, women without antenatal care and those who rely on traditional birth attendants are among the groups considered particularly vulnerable to complications during pregnancy and childbirth.

He said the application sends reminders to pregnant women ahead of their antenatal appointments and, where necessary, alerts responsible adults within their communities to ensure that the women receive appropriate care.

‘When we don’t see them, then this app, two days to antenatal care, it tells you that you should come for antenatal,’ he said.

The Commissioner added that the system also enables health workers to track pregnant women approaching their expected delivery dates and arrange for them to be taken to health facilities when necessary.

He disclosed that the system had already contributed to successful deliveries among teenage pregnancies managed through the programme, noting that health workers were able to intervene promptly when labour failed to progress and trigger Caesarean section where necessary.

He said the initiative was developed to address Abia’s peculiar maternal health challenges and was being adapted to suit the state’s needs.

The Commissioner also urged pregnant women to enrol in the state’s health insurance programme, noting that registered pregnant women were entitled to free maternal health services and delivery, including Caesarean section, under the Basic Health Care Provision Fund arrangement.

He said that the State Government’s objective was not only to provide well-equipped and adequately staffed hospitals but also to tackle the underlying factors responsible for maternal mortality by identifying vulnerable women early and ensuring that they receive timely care.

Google’s Gemini artificial intelligence chatbot has reached 1 billion monthly active users which marks the fastest growth of any product in the company’s history, according to CEO Sundar Pichai.

Pichai disclosed the milestone on Tuesday in a post on X, highlighting the rapid adoption of Gemini as Google seeks to strengthen its position in the increasingly competitive consumer AI market.

The latest figure comes less than a month after Google reported 950 million monthly active Gemini users in its most recent earnings report, meaning the platform added about 50 million users in a matter of weeks.

Google said 63 percent of Gemini users interact with the chatbot directly, rather than accessing its AI capabilities through other Google products and services.

The company also disclosed that about 100 million Apple users are active Gemini users.

Google supplies the underlying AI models used by Apple for features associated with Apple Intelligence and Siri.

The milestone puts Gemini in closer competition with OpenAI’s ChatGPT, which has also experienced rapid growth.

OpenAI said on July 31 that ChatGPT had reached 1 billion active users, alongside more than 2 million business customers which reveals the scale of competition between the two AI platforms.

Google’s rapid user growth reflects the company’s efforts to integrate Gemini across its ecosystem while also positioning it as a standalone consumer chatbot.

The competition is extending beyond chatbot users to businesses, mobile devices, search and productivity tools, as Google and OpenAI seek to make their AI assistants central to how consumers interact with technology.

For Google, the 1 billion-user milestone represents a significant expansion of Gemini’s reach and strengthens its challenge to ChatGPT in the global consumer AI market.

The company’s ability to convert Gemini’s large user base into sustained engagement and paid services could become important as competition intensifies and AI companies spend heavily on models, infrastructure and distribution.

For much of the past three decades, global health financing rested on the expectation that external assistance would continue to expand alongside the health needs of developing countries. That expectation is now less certain, as fiscal pressures in donor countries, changing political priorities and recent disruptions to established programmes reshape how health partnerships are financed and managed. Nigeria must prepare for that change without surrendering the gains those partnerships have helped to achieve.

The implications are especially clear in immunisation, where nearly 10 million children are born in Nigeria each year. Each cohort must be reached with the vaccines already in the national schedule, while new vaccines are introduced only where the burden of disease, the evidence and the capacity of the health system justify them. With one of the largest birth cohorts in the world, Nigeria is among the most demanding immunisation settings globally.

Against this background, Gavi’s announced support of about US$500 million between 2026 and 2030 at a meeting with President Tinubu is a welcome boost. It will help finance vaccines, strengthen delivery and surveillance, maintain the cold chain and reach children who remain outside routine services. The support is provided within Gavi’s co-financing model, under which participating governments meet a share of vaccine costs and take on more as their capacity grows. Under Gavi 6.0, the Alliance’s 2026-2030 strategy, country leadership and the long-term sustainability of national immunisation programmes remain central to the way support is provided.

Financing a national commitment

Nigeria has already co-financed vaccines at a level only few countries in the Gavi portfolio have matched. Over the course of the partnership, more than US$500 million has come from domestic resources. This scale of commitment reflects Nigeria’s demographic weight and a routine schedule of nearly 13 antigens; vaccines are consequently among the highest commodity cost items in the budget of the Federal Ministry of Health and Social Welfare.

This investment reflects the priority President Bola Ahmed Tinubu’s administration has given to immunisation, maternal and child health and primary healthcare. Sustaining that commitment as the programme expands will require counterpart financing to keep pace and responsibility to be shared more evenly across the federation. The Federal Government has historically borne most of the co-financing cost, while states are expected to provide much of the workforce, facilities, transport and community outreach through which vaccines reach children. A lasting financing framework should therefore reflect the shared responsibility between the federal and state levels.

That balance becomes more important with every vaccine introduced, because each addition creates a recurrent obligation as successive cohorts become eligible. Each new vaccine must therefore be judged not only by disease burden but also by equity, affordability and the ability of the health system to deliver it consistently. Expanding the schedule without sustaining reliable coverage would defeat the purpose of doing so.

The design of the NHSRII

These financing choices cannot be separated from the way the wider health system is organised. The Nigeria Health Sector Renewal Investment Initiative (NHSRII) was designed in response to a system in which priorities, financing and implementation had too often been dispersed across separate programmes. It provides the framework through which the government sets national priorities, states and partners align behind them, and resources are connected more clearly to results.

External assistance has contributed immensely to Nigeria’s health gains, much of it delivered through separate plans, procurement channels, contractors and reporting systems. These programmes saved lives and built important capabilities, but they also produced fragmentation, duplication and limited visibility across the sector, leaving national institutions to assume responsibilities without always inheriting the systems, data and financing required to sustain them.

The Sector-Wide Approach (SWAp) was introduced to change that pattern. Under the Health Sector Renewal Compact, the Federal Government, all 36 states, the Federal Capital Territory and development partners have committed to working from one national plan, one budget and one reporting system. Because Nigeria’s health system remains decentralised, national progress still depends on state and local performance; the reform therefore gives the federation a shared direction while making responsibilities, resources and results easier to track.

The HOPE for Quality Primary Healthcare (HOPE-PHC) programme gives practical effect to this approach by linking financing to measurable improvements in primary healthcare at the state level.

Building the domestic financing base

Within that framework, domestic financing has risen incrementally under President Tinubu. Health represented about 3.48 percent of the federal budget when the administration began; it moved to 4.3 percent, then about 5.28 percent, and reached 6 percent of the 2026 budget net of liabilities. Although Nigeria’s needs remain greater, this progression establishes a stronger domestic base over successive budgets instead of resting policy on promises that cannot be sustained.

These increases are intended to support better services, stronger financial protection and improved population health. Achieving that purpose requires sound planning, predictable financing, disciplined procurement and clear reporting so that Nigerians can see the connection between increased health investment and medicines in stock, functioning facilities, frontline workers and protection from catastrophic costs.

From imports to domestic production

As domestic financing grows, it should also change what Nigeria buys and what it is able to produce. Replacing donor money with public money to import the same finished products would leave the country exposed to foreign-exchange volatility, supply disruptions and production decisions made elsewhere.

This is why President Tinubu established the Presidential Initiative to Unlock the Healthcare Value Chain (PVAC). Its mandate covers pharmaceuticals, vaccines, biologics, diagnostics, medical devices, logistics and health technology, with the aim of reducing that dependence by attracting investment into domestic production and building a stronger healthcare economy.

Vaccine manufacturing is technically demanding and requires capital, technology transfer, regulation, quality assurance and dependable demand over many years. Nigeria has the market to support such investment, but viability will depend on pooled procurement, development finance, strong regulation and credible technology partnerships working together. Gavi’s growing support for African vaccine manufacturing can assist countries prepared to build that capacity on sound commercial and regulatory foundations.

Beyond 2030

We expect the Gavi commitment to leave Nigeria with more than the vaccines purchased over five years. By 2030, fewer children should remain outside routine immunisation, differences between states should have narrowed, and federal and state governments should have a clearer and more durable arrangement for sharing recurrent costs. Data, supply chains and programme management should also sit more securely within Nigerian institutions.

The Gavi funding, rising domestic budgets and the drive for local manufacturing are therefore parts of one reform programme under the NHSRII. This approach is enabling Nigeria to build a health system in which international cooperation serves national priorities and domestic institutions carry a growing share of responsibility.

That transition is taking place amid constrained public revenues, unequal fiscal capacity across states and rising costs for essential commodities. Meeting these pressures will require careful priority-setting, greater efficiency and a steady expansion of domestic financing without weakening services on which people already depend.

Nigeria welcomes Gavi’s US$500 million support as part of the shared effort to protect our children over the next five years. Within that period, we will continue to strengthen the domestic financing and institutional capacity needed to sustain immunisation beyond 2030, as Nigeria assumes greater responsibility for financing the programme and meeting the health needs of our citizens.

The Lagos Commodities and Futures Exchange (LCFE) has secured a licence from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to facilitate the trading and clearing of petroleum liquids, in a development expected to deepen price discovery, transparency and investment in Nigeria’s energy market.

The approval provides LCFE with the regulatory foundation to establish a structured marketplace for petroleum liquids, linking the physical petroleum market with Nigeria’s capital market through regulated trading, clearing and settlement infrastructure.

The licence was unveiled in Abuja on Tuesday at a stakeholder event attended by senior representatives of the NMDPRA, Securities and Exchange Commission (SEC), S and P Global Ratings, Central Securities Clearing System (CSCS), Alliance Law Firm and other participants in the capital and petroleum markets.

Already, no fewer than 10 petroleum liquid traders have committed to participating on the Exchange, providing an initial pool of market participants for the development of the new trading ecosystem

Akin-Akeredolu-Ale, Managing Director/Chief Executive Officer, LCFE said the approval marked a defining moment for Nigeria’s commodities market, noting that the infrastructure required to support petroleum liquids trading was now increasingly coming together.

‘The issuance of this marks a defining moment for Nigeria’s commodities market. It gives us the regulatory foundation to bring petroleum liquids into a transparent, structured and technology-enabled marketplace, connecting the physical energy market with Nigeria’s capital market,’ he said.

Akeredolu-Ale said the emerging market architecture would incorporate technology-enabled trading, two-way quotations, contract trading and settlement, as well as licensed collateral managers to strengthen oversight and risk management.

The development comes as Nigeria’s petroleum industry undergoes significant structural changes following the implementation of the Petroleum Industry act (PIA)deregulation of the downstream market and the commencement of operations by the Dangote Refinery.

Rabiu Abdullahi Umar, Chief Executive, NMDPRA said the Authority’s priority was to create a predictable, equitable and transparent regulatory environment capable of attracting investment and supporting the sustainable growth of the energy market.

According to him, the PIA, market deregulation and the emergence of large-scale domestic refining capacity have fundamentally altered Nigeria’s position in the global energy market.

Emomotimi Agama, Director General, Securities and Exchange Commission (SEC) commended LCFE for pursuing the initiative, describing it as an opportunity capable of transforming Nigeria’s commodities and capital markets.

Samera Mensah, Managing Director, Africa Research and Analytics and Country Head, South Africa, S and P Global Ratings stressed the importance of credible market infrastructure, transparent pricing, benchmarks and credit ratings in building investor confidence.

According to Mensah, S and P has reclassified Nigeria from a frontier market to an emerging market, a development that aligns with the President’s ambition to grow the Nigerian economy to $1 trillion.

Onome Komolafe, Division Head, Business Services and Client Experience at CSCS, said the financial market infrastructure provider would support the new market through its depository, clearing and settlement capabilities, including digital asset recording and depository services.

Uche Obi, Founder and Managing Partner of Alliance Law Firm described the licence as a major legal and regulatory milestone for Nigeria’s commodities market, noting that it provides LCFE with the authority to facilitate the approved trading and clearing activities and underscores the regulatory and institutional capacity supporting the new market.

Analysts described the receipt of the NMDPRA approval as a significant milestone in LCFE’s broader ambition to transform Nigeria’s commodities market and position the Exchange as a leading commodities trading platform in Africa.

More than 2,700 residents of Imogbara, Odo-Ijesha and Iperindo communities in Osun State have received free medical services under the fourth annual Community Medical Outreach organised by Segilola Resources Operating Limited (SROL).

The two-day outreach, held on August 7 and 8, provided medical consultations, diagnostic services, specialist care and health education, while expanding SegunCare, SROL’s long-term healthcare programme for residents living with chronic illnesses, to provide broader mental health support.

A total of 2,762 medical consultations were conducted, while 81 residents were referred for general and specialist surgical procedures. The programme also recorded 1,860 laboratory investigations and 563 eye examinations, with 21 residents scheduled for eye surgeries and 174 given prescription reading glasses.

Residents were also screened for hypertension, diabetes, HIV, hepatitis B and C, tuberculosis and other health conditions.

The expanded SegunCare programme identified seven residents with chronic mental health conditions and provided access to rehabilitation and counselling. Another 50 residents were enrolled in the programme for continued management of chronic illnesses.

SegunCare was launched in 2025 to provide monthly medication, routine monitoring and long-term treatment for residents living with chronic diseases. The programme currently supports about 279 beneficiaries, with the latest enrolments bringing the number of people receiving ongoing support to a larger pool.

While mental health diagnosis and treatment were already part of SegunCare, SROL said the latest expansion would provide more comprehensive support through counselling, rehabilitation for residents affected by substance use, community education to address misconceptions around chronic diseases and patient support groups aimed at reducing social isolation.

Princewill Osuchukwu, medical services manager at SROL, said sustained treatment was necessary to achieve lasting health outcomes beyond the company’s annual medical outreach.

‘Our vision has always been to ensure that quality healthcare is not limited by location or affordability,’ Osuchukwu said.

‘While the annual outreach provides immediate access to essential medical services, we recognise that lasting health outcomes require sustained care.’

He said the integration of additional mental health support was another step towards providing more holistic healthcare to communities around SROL’s operations.

For beneficiaries, the long-term nature of the programme has helped ease the financial burden associated with chronic illness.

Adeshina Sherifat, who enrolled in SegunCare last year, said the programme had enabled her to access regular medication and monitoring that she previously struggled to afford.

‘Before SegunCare, buying my medication every month was very difficult because I couldn’t always afford it,’ she said. ‘Today, I receive my medication regularly, my health is monitored, and I feel much stronger.’

Soji Gbege, chairman of the Iperindo Community Development Agreement Committee, said the consistency of the programme had helped strengthen trust between SROL and host communities.

‘For many families in our communities, quality healthcare remains expensive and sometimes out of reach,’ Gbege said.

‘What has mattered most to us is not just what SROL provides during the outreach, but how consistently they have shown up for our communities year after year.’

SROL said its annual community medical outreach has reached more than 13,000 residents since inception, making it one of the company’s flagship community initiatives.

The programme focuses on preventive healthcare, specialist treatment and long-term disease management, alongside SROL’s broader investments in education, economic empowerment and infrastructure in its host communities.

There was a time when participating in the Nigerian securities market required not just capital, but connections. An investor needed a broker with the right relationships and enough patience to wait for price updates that were often already outdated by the time they arrived. Trading was slow, manual, and largely inaccessible to the average Nigerian. The process remained opaque, concentrated within a relatively small circle of institutional desks and informed intermediaries.

Today, securities trading in Nigeria has undergone a profound transformation. Over the past decade, the market has evolved from a system defined by physical presence, paperwork, and lengthy settlement processes to one increasingly driven by digital infrastructure, real-time information, and broader participation. What was once reserved for a niche group of participants is now increasingly accessible to everyday Nigerians, as technology reshapes how the capital market functions.

The most visible impact has been the democratisation of access. Digital trading platforms now enable investors to buy and sell equities, fixed-income instruments, and other listed securities directly from their mobile phones or computers. Opening accounts, funding wallets, executing trades, and monitoring portfolios can be completed within minutes, often without visiting a physical office. This shift has contributed significantly to increased retail participation, particularly among younger investors who expect financial services to offer the same convenience as mobile banking and digital commerce. Barriers such as geography, information access, and operational complexity that once limited participation have steadily diminished.

Transparency has improved significantly. Investors today have access to real-time pricing, instant trade confirmations, and comprehensive transaction histories that provide far greater visibility into their investment activities. The Securities and Exchange Commission (SEC) Nigeria and other market operators have supported this progress through initiatives that strengthen market integrity, improve disclosure standards, and promote digital innovation. The information gap that once separated institutional and retail investors has narrowed considerably, with individual investors now able to access data, market updates, and research insights once available only to professional trading desks. At the infrastructure level, the dematerialisation of share certificates, the strengthening of the Central Securities Clearing System (CSCS), the adoption of electronic dividend systems, and digital KYC frameworks anchored on BVN and NIN verification have collectively eliminated many of the inefficiencies that previously characterised the investment journey.

From an institutional perspective, the benefits extend beyond convenience. Enhanced trading infrastructure, improved market data, and faster execution capabilities have strengthened portfolio management and decision-making across the board. Market participants can now access deeper insights into liquidity patterns, trading activity, and price movements in real time, enabling more informed responses to changing market conditions. Upgraded exchange infrastructure and automated trading systems have also reduced latency, improved order matching, and raised execution quality overall. Globally, data and analytics are playing an increasingly important role in this environment. Investors now have access to tools that go beyond intuition, supporting decisions grounded in portfolio performance, asset allocation trends, and risk exposure metrics. Artificial intelligence and machine learning are also beginning to reshape how market participants identify opportunities and manage risk. As these technologies become more accessible, Nigerian investors are well positioned to benefit from their broader adoption.

Perhaps the most consequential long-term impact of this transformation is the depth of financial inclusion it is enabling. Historically, high minimum investment thresholds, limited access to information, and complex onboarding requirements prevented many Nigerians from meaningfully participating in the capital market. Today, digital platforms are addressing these barriers through simplified account-opening processes, lower entry requirements, investor education resources, and more accessible investment products. Investors can increasingly access fixed-income securities, mutual funds, and other products through digital channels. As smartphone penetration and internet access continue to expand, capital market participation is expected to become more widespreadand driven by a mobile-first generation that moves fluidly between saving, spending, and investing within integrated financial ecosystems.

This transformation is not without its challenges. Cybersecurity risks, digital literacy gaps, and infrastructure constraints remain important considerations. Protecting investor data and ensuring the resilience of trading platforms are essential to sustaining trust in a digital-first market environment. Market operators, regulators, and technology providers continue to strengthen security frameworks through encryption, multi-factor authentication, enhanced compliance controls, and real-time monitoring systems. Sustaining investor confidence will require continued investment in all three areas: technology, education, and regulatory oversight.

Looking ahead, the next phase of market evolution is likely to be shaped by deeper integration of artificial intelligence, predictive analytics, and potentially blockchain-enabled settlement infrastructure. These innovations have the potential to further reduce operational inefficiencies, strengthen risk management, and improve the overall investor experience. But the future of securities trading will not be defined by technology alone. It will be defined by how effectively that technology expands access, improves decision-making, and deepens trust within the market. The real value of digital transformation lies not in the tools themselves, but in their ability to create a more transparent, inclusive, and efficient investment ecosystem.

Technology has done more than digitise securities trading in Nigeria. It has fundamentally shifted the balance of access and information within the market. The competitive advantage in investing will no longer be determined solely by access to capital, but increasingly by access to intelligence, speed, and seamless digital experiences. For investors, the implication is clear: access is no longer the barrier it once was. The opportunity now lies in how effectively individuals and institutions leverage the tools available to participate in the market and build long-term wealth.

The market is no longer anchored at the broker’s desk – it is already in your hand.

To access the capital market via CardinalStone, investors can trade securities, monitor their portfolios, and manage their investments through the CardinalStone Online Trading Portal at app.cardinalstone.com or via the CS Alpha mobile app, available for download on major app stores.

Nigeria’s drive to raise tax revenue by widening the tax net faces a fundamental constraint as millions of workers and businesses earn too little to contribute significantly to government coffers, making economic productivity as important as tax compliance.

The government estimates that Nigeria’s tax-to-GDP ratio has risen to 13.5 percent, from less than 10 percent at the start of the President Bola Tinubu administration, and is targeting 18 percent as its tax reforms take effect.

Closing that 4.5-percentage-point gap would require the government to collect substantially more revenue relative to the size of the economy, putting greater focus on both tax administration and the ability of businesses and individuals to generate taxable income.

The central question is therefore whether Nigeria can achieve its tax ambitions simply by identifying more taxpayers or whether it must first create a larger pool of profitable businesses and better-paying jobs from which sustainable tax revenue can be generated.

‘Nigeria can’t sustainably tax its way to significantly higher revenue without first expanding the number of people and businesses earning enough to contribute meaningfully to the tax base,’ said Yvonne Afolabi, a Lagos-based tax and investment expert.

According to Afolabi, tax reforms should go alongside investment in small and medium-sized businesses, infrastructure, skills and productive sectors of the economy.

‘The objective should not be to extract more tax from the existing formal base, but to grow the base itself,’ she said.

The argument comes as Africa’s most populous economy rejigged its tax regime for the first time in decades with the aim of improving compliance, broadening its base, and making tax administration more efficient.

Taiwo Oyedele, minister of finance and coordinating minister of the economy, has repeatedly argued that Nigeria’s revenue problem is not primarily that tax rates are too low but that too few eligible taxpayers pay taxes.

The government has also stressed that the reforms are designed to improve fairness in the system rather than simply increase the burden on individuals and businesses already paying taxes.

That position addresses the compliance side of Nigeria’s revenue problem. But the country also faces a productivity challenge.

The latest available labour-force data show the scale of that challenge. Available data from the National Bureau of Statistics showed that 93 percent of total employment was informal in 2024.

The unemployment rate, meanwhile, stood at 4.9 percent by the end of 2024 under the revised labour-force methodology.

The figures highlight an important distinction in Nigeria’s tax debate: being employed does not necessarily mean earning enough to generate significant taxable income.

A large informal workforce means millions of Nigerians are economically active through self-employment, small businesses and other activities that may generate income but remain difficult to capture fully through conventional tax administration.

Nigeria’s tax challenge is therefore not simply to move more people into the tax register. It is to increase the amount of income and profit generated by the people and businesses already participating in the economy.

That requires investment. Businesses with access to affordable finance, reliable electricity, transport infrastructure, digital connectivity and skilled workers are better positioned to increase production, employ more people and generate sustainable profits.

As businesses grow and workers earn more, the pool of taxable economic activity expands.

The Bank of Industry provides one indication of the potential role of financing in that process.

The development finance institution said it disbursed a record N636 billion to businesses in 2025, its highest annual financing volume, supporting more than 7,000 businesses.

The Presidency said the financing supported or sustained about 1.6 million jobs.

The figures illustrate how access to capital can support productive activity, although the amount of financing disbursed or number of jobs supported does not by itself establish how much additional tax revenue the businesses will eventually generate.

The more important question is whether such financing allows enterprises to move from survival to sustained growth.

Nigeria needs businesses capable of increasing turnover, investing in equipment, employing workers and generating taxable profits, rather than simply expanding the number of registered enterprises.

This is particularly important for small and medium-sized businesses, which account for some 96 percent share of economic activity but often face high financing costs, unreliable infrastructure and other constraints that limit their ability to scale.

Without addressing those constraints, stronger tax enforcement could increase the number of registered taxpayers without producing a proportionate increase in revenue.

But Nigeria cannot simply wait for businesses and incomes to grow before collecting more taxes.

The government needs revenue now to finance infrastructure, education, healthcare and other investments required to raise productivity. This creates a fiscal cycle in which taxation and investment have to reinforce each other.

A wider and more efficient tax base can provide the government with resources to invest in the economy, while investment in businesses, infrastructure and human capital can create the jobs, incomes and profits needed to sustain a larger tax base.

That makes the government’s 18 percent target more than a test of the tax authorities’ ability to identify and collect from taxpayers.

It is also a test of Nigeria’s ability to expand the productive economy from which those taxes are generated.

‘As more Nigerians move into productive employment and SMEs become more profitable and formalised, government revenue naturally increases,’ Afolabi said.

For Nigeria, the success of tax reform may ultimately be measured not only by how many taxpayers are brought into the system, but by how much taxable economic activity the economy is able to create.

The more businesses that grow, the more workers who move into productive and better-paying employment, and the more income and profits they generate, the stronger and more sustainable the country’s tax base becomes.

The new fiscal space for states

The removal of the petrol subsidy and the alignment of the naira with market forces have created unprecedented fiscal room for Nigerian states. Before 2023, states struggled to pay salaries and pensions, often resorting to borrowing. Today, thanks to these reforms, FAAC allocations have surged.

For context, the total FAAC disbursement to states in 2022 was ?2.8 trillion, compared to ?2.49 trillion in just the first seven months of 2026. This explosion in funding has allowed states to meet obligations effortlessly, unlike the pre-2023 era when artificial FX rates distorted revenues and forced the Federal Government itself to borrow heavily from the CBN, fuelling inflation.

The risks of windfalls

Windfalls, when unplanned, often lead to waste. States risk spending on irrelevant projects or indulging in short-term populism simply because ‘the money is there’. Citizens must therefore hold their governors accountable: if infrastructure does not improve, the fault lies with state leadership, not Abuja.

Infrastructure as the best subsidy

Unlike petrol subsidies, which largely benefited the connected elite, infrastructure is a universal subsidy. The 3rd Mainland Bridge in Lagos is a perfect example: rich and poor alike benefit from it daily. Subsidy removal should therefore translate into infrastructure that makes life easier for all citizens.

Discipline over resources

Accelerating infrastructure development is less about the size of resources and more about discipline and focus. Just as wealth creation for individuals depends on consistent investment rather than waiting to ‘get rich first’, states must adopt a disciplined approach to saving and investing in infrastructure.

Establishing State Infrastructure Development Funds (SIDF)

Each state should set up a State Infrastructure Development Fund (SIDF), seeded with part of the FAAC windfall and sustained by monthly deposits. This deliberate structure ensures:

Dedicated funding for infrastructure projects.

Investor confidence, as construction firms and financiers can see clear repayment plans.

Transparency and accountability, reducing cost overruns and fraudulent contract revisions.

Continuity across administrations, since projects backed by SIDF cannot be arbitrarily abandoned.

This model mirrors the sinking fund arrangements once common in project finance in my days in banking, where regular cash flows were dedicated to repaying long-term loans.

Governance and expertise

For SIDFs to succeed, states must:

Establish strong legal frameworks.

Appoint credible boards with professional expertise.

Partner with banks and financial institutions already setting up infrastructure funds.

Such guardrails will prevent misuse, attract co-funding, and ensure projects are completed on time.

Nigeria’s states now have the fiscal opportunity to transform their infrastructure. But opportunity alone is not enough. Discipline, structure, and transparency are essential. By treating infrastructure as the true subsidy for citizens and institutionalising funding through SIDFs, states can deliver lasting economic and social benefits.

Governor Umo Eno of Akwa Ibom State has urged indigenes of the State in the diaspora to deploy their expertise, skills, global exposure, networks and investments to boost the state government’s investment drive.

Governor Eno said that Akwa Ibom is steadily positioning itself as a major investment and tourism destination.

Governor Eno made the call at the Gala Night of the 39th annual convention of the Akwa Ibom State Association of Nigeria (AKISAN), held at the Hilton Anatole Resort in Dallas, Texas, which was made available to the media.

Represented by Eno-Obareki, Coordinator, Office of the First Lady, congratulated Mbong Ekiko, the newly re-elected AKISAN President and his executive members, commending them for sustaining the annual convention as a platform for unity, networking, cultural celebration and the promotion of the collective interests of Akwa Ibom people in diaspora.

He described the convention theme, ‘Unleashing our full potential: Transforming AKISAN together for a brighter tomorrow,’ as timely and consistent with his administration’s determination to expand the frontiers of development through the ARISE Agenda.

Governor Eno said that his administration had recorded significant progress in healthcare, tourism, power, aviation, agriculture, education, security, infrastructure, human capital development and efforts toward the realisation of the Ibom Deep Seaport.

He urged the diaspora to see the development of Akwa Ibom as a shared responsibility, stressing that their professional expertise, exposure and international networks remained valuable assets for accelerating development at home.

‘You have the training, the skill set, the exposure and contacts – these are areas we expect you to bring back to add value to our development,’ he said.

Highlighting the State’s healthcare investments, the Governor cited the recently unveiled 350-bed Ibom International Hospital, along Uyo-Ikot Ekpene Road and the Oluremi Tinubu Elders’ Care Centre.

He commended Ita Anwan AKISAN member for responding to the State’s call to contribute her expertise to the hospital project, noting that she supervised the project from inception to completion and developed its management manual.

The governor called on healthcare professionals in diaspora to partner with the State, particularly as the hospital has 24 speciality departments, including oncology.

On power and tourism, the Governor disclosed the establishment of the Akwa Ibom State Electricity Regulatory Commission (AKSERC) following the liberalisation of the electricity sector, expressing confidence that the state would provide steady and affordable power within the next year.

He also said that Akwa Ibom was being positioned as a tourism hub, citing the Arise Palm Resort, which he disclosed would be commissioned by President Bola Tinubu during the state’s anniversary celebrations. Describing the facility as ‘our own Disneyland,’ he invited Diaspora investors to explore opportunities in tourism, hospitality and related sectors.

Governor Eno also highlighted the International Convention Centre, Arise Shopping City and Ibom Hotel, all located within the Tropicana axis, while in the aviation sector he described the Victor Attah International Airport Terminal as one of the smartest and most modern in the country.

He disclosed that Ibom Air had commenced commercial flights from Uyo to Accra, Ghana, with plans for additional international routes, while work was advancing on the Airport Village and a hospital within the airport complex.

He said that developments in roads, aviation and the Ibom Deep Seaport reflected the State’s expanding infrastructure base. ‘Akwa Ibom continues to rise, and we want you to be a part of this great journey of growth,’ he told the Diaspora community.

The governor further noted the administration’s social investment programmes, including the payment of backlog gratuities and the construction of 461 solar-powered compassionate homes for vulnerable residents.

He said that the government is also investing in agriculture and food security, human capital development, transportation, the blue economy, security, housing and sports, while 85 other audacious projects were being executed across various sectors. He appealed to Diaspora investors to explore opportunities such as the Ewet Luxury Housing Estate.

He urged Akwa Ibom people abroad not to lose sight of developments at home, challenging them to emulate the Indian, Chinese and Irish Diaspora communities whose knowledge, skills, investments and global networks contributed to the transformation of their respective countries.

‘While you are living and flourishing here, don’t lose sight of what is happening back home,’ he said, urging them to become ambassadors of Akwa Ibom and help attract investors and visitors to the state, which he described as ‘a shining city on the hill, bold, inviting, enchanting and welcoming.’

Aniekan Umanah, the State’s Commissioner for Information, earlier at the Governor’s Town Hall meeting with a cross-section of Akwa Ibom indigenes in the diaspora, delivered a comprehensive visual presentation detailing the accomplishments of the Eno administration in line with the ARISE Agenda.

The presentation highlighted major completed, ongoing and planned projects across infrastructure, healthcare, tourism, aviation, power, agriculture, education, security, human capital development and social investment, giving the Diaspora audience a broader view of the administration’s development trajectory.

The convention witnessed the swearing-in of Mbong Ekiko for a second term as President of AKISAN following his re-election. In his remarks, Ekiko commended Governor Eno for what he described as the numerous developmental strides recorded by the administration across critical sectors of the state, as well as its deliberate efforts to strengthen partnership and engagement with the Akwa Ibom Diaspora.

In recognition of these strides and the growing partnership between the State and its diaspora community, the AKISAN Council announced its resolution to host the association’s 40th convention in 2027 in Uyo, the Akwa Ibom State capital, a decision that was received with enthusiasm by delegates and members.