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Liquidity challenges in Nigeria’s electricity market persisted in July 2025, as the country’s 11 distribution companies (DisCos) and Aba Power Limited Electric (APLE) posted a combined N49.18 billion revenue shortfall, according to the Nigerian Electricity Regulatory Commission (NERC).

The figure, captured in NERC’s July 2025 Commercial Performance Factsheet, showed a modest improvement from the N55.74 billion shortfall recorded in June 2025, but still underscores deep structural inefficiencies in revenue recovery across the sector.

Ikeja Electric topped the performance chart with a 102.05 per cent collection efficiency, billing N40.03 billion and collecting N40.84 billion, driven by arrears recovery and current charges.

Eko DisCo followed with an 86.56 percent efficiency, collecting N33.54 billion from N38.75 billion billed, while Benin DisCo achieved 95.19 percent, realising N15.13 billion from N17.77 billion billed.

Other strong performers included Ibadan DisCo, which recorded 82.81 percent efficiency with N20.90 billion collected from N25.24 billion billed, and Abuja DisCo, which posted 80.26 percent, collecting N30.44 billion from N37.93 billion billed.

In the mid-range, Enugu DisCo and Port Harcourt DisCo reported efficiencies of 78.34 percent and 76.07 percent, respectively, while Yola DisCo achieved 67.80 percent.

At the bottom of the ranking, Aba DisCo managed 61.81 percent, Kano DisCo 58.61 percent, and Kaduna DisCo 45.41 percent. Jos DisCo had the weakest showing, collecting just N4.59 billion out of N11.81 billion billed, representing a 38.95 percent efficiency rate, the lowest in the sector.

Commenting on the figures, Adetayo Adegbemle, Executive Director, PowerUp, cautioned that the results represent only about 40 percent of the energy delivered to DisCos, as the remainder is treated as a tariff shortfall to be covered by the Federal Government.

He warned that the sector’s sustainability remains precarious, ‘If DisCos are struggling to meet obligations on just 40 percent, their survival would be in serious doubt once tariff shortfall payments are removed and they are required to recover 100 percent of their Collection Rate Target (CRT),’ Adegbemle said.

According to him, the CRT stands at N210 per kWh, while the average allowed tariff is N116 per kWh, and the average recovery rate is N89 per kWh.

Some DisCos, he added, are recovering as little as N30 to N41 per kWh, highlighting the persistent inefficiency in collections despite ongoing regulatory reforms.

Industry analysts say the widening gap between energy billing, collection, and actual cost recovery highlights the fragile financial state of Nigeria’s power sector, raising concerns about its long-term sustainability without significant tariff adjustments and enforcement of performance standards.

Oil prices rose on Sunday after OPEC and its allies agreed to a modest increase of 137,000 barrels per day (bpd) from November, signalling a cautious approach to production growth amid persistent concerns of oversupply.

Brent crude climbed by nearly 1.5 percent to $65.30 per barrel, a 1.19 percent increase, while West Texas Intermediate (WTI) rose to $61.60, a 1.18 percent increase as markets reacted to the smaller-than-expected hike.

The output adjustment mirrors that of October and comes after the group dismissed rumours of a more aggressive 500,000 bpd increase.

So far this year, OPEC+ has raised its collective target by over 2.7 million bpd, equivalent to around 2.5 percent of global demand, as the alliance seeks to reclaim market share from non-OPEC producers without triggering a sharp price decline.

According to Oilprice, leading up to the meeting suggested friction between Russia and Saudi Arabia, with Moscow said to favour a modest hike due to sanctions-related constraints and fears of weakening prices, while Riyadh pushed for a bolder increase.

OPEC attributed its measured decision to a ‘steady global economic outlook and healthy market fundamentals,’ citing low global oil inventories as evidence of balance.

The alliance will reconvene on November 2 to reassess production levels and may revise its strategy depending on demand trends and inventory data.

As the countdown to the January, 2026 effective take off of two landmark Tax Reform laws gathers steam, wrong narratives and misconceptions about aspects of the new tax laws have also been on the increase. While some of the misconceptions are borne out of innocent ignorance, others are mostly from a place of political mischievousness. In this Explainer I will be addressing the misconceptions around the income tax provisions in the Nigeria Tax Act, 2025.

Over the past couple of months, I have noticed the following misconceptions and wrong narratives around the issue of income tax, many of which emanate from individuals or businesses who have clearly been evading income taxes:

1. Nigerians pay higher income taxes from January 1, 2026

2. Money in individual bank accounts would be automatically taxed by the government

3. Federal government is desperate to raise revenue by taxing the income of Nigerians heavily.

4. Tax laws will stifle productivity

I will briefly touch on each of these misconceptions, providing clarifications in layman terms.

Higher or Lower Income Taxes for Individuals?

The reality is that the income tax paid by MAJORITY of Nigerians will reduce following the new personal income tax provisions in the Nigerian Tax Act, 2025 that exempted individuals earning N800,000 and below per annum from paying income tax. What this means is that Nigerians earning minimum wage or below will pay zero income tax.

I understand some will argue that minimum wage is N70,000 per month, which translates to N840,000 per annum and ordinarily means a minimum wage earner still has N40,000 above the N800,000 exemption threshold that is subjected to an income tax of 15% under the new tax law. That is correct, but here is the catch, there is what is called TAXABLE INCOME and is not necessarily equivalent to the total income of an individual.

Taxable income is simply the part of the total income that can be taxed after allowable deductions have been made. Under the NTA 2025, you can deduct the following from your GROSS income to get your TAXABLE income:

a) NHIS contribution (5% of salary for most employees)

b) Annual rent (corresponding to 20% of the rent up to a maximum of N500,000)

c) National Housing Fund deduction (2.5% of gross pay)

d) Employee Pension contribution (8% of employee salary)

e) Life insurance premium for you and your spouse

In other words, a minimum wage earner claim some or all of these deductions and these will certainly drive down the taxable income within the exemption threshold of N800,000 per annum.

Let us do a practical calculation for an individual earning N70,000 monthly (minimum wage) who pays an annual rent of N200,000 in addition to NHIS, NHF and contributory pension deductions.

His gross annual income = N840,000

Pension contributions = N67,200

NHF deduction = N21,000

NHIS deduction = N42,000

20% of Annual Rent = N40,000

By the time you make these allowable deductions from the N840,000 gross income, the individual’s TAXABLE INCOME becomes N710,800. This falls well within the exemption threshold which means the individual will not pay any income tax.

If an individual earns N80,000 monthly, and we use similar deductions for NHIS, NHF and CPS while raising annual rent to N300,000 with 20% amounting to N60,000, the individual will still be exempt from paying income tax as the taxable income would be N799,200 – within the N800,000 tax exemption threshold. Even when we calculate for an individual earning an annual gross income of N1.2m, the individual may even fall within the tax exempt status depending on the deductions he or she claims or at worst the individual may just be taxed an effective tax rate of 2.5% under the new law as against 4.6% under the old law.

The tax band is progressive in nature and only makes the rich with reasonably much higher annual gross income to pay a little more than before, which is a fair system. Although, depending on the deductions they may claim, they can end up paying lesser income tax than before. This in itself opens a lot of opportunities for the economy especially the life insurance sector as well as the health sector since one can actually sign up for health insurance and/or life insurance in order to pay lesser income tax while at the same time benefiting from quality all-round cheaper healthcare offered by the NHIS for the family.

Below is a demo tax calculation for an individual earning an annual gross income of N50 million. The individual lives in an apartment he purchased with a bank loan of N80 million at an annual interest rate of 27% with a five-year tenor, making his annual interest payment to be approximately N4.32 million. This particular individual also makes N5 million contribution towards his pension and another N2.5 million NHIS contribution that covers himself, his spouse and four kids.

After deducting N5 million pension contributions, N2.5 million NHIS contribution and N4.32 million interest payment, his taxable income out of the N50 million gross income becomes just N35.18 million. However, this N35.18 million is not taxed a flat rate of 23% (under the old law, income above N3.2 million is taxed a flat rate of 24%), rather it is progressive – the first 800k is 0%, next N2.2m is taxed at 15%, next N9m is taxed at 18%, next N13m is taxed at 21% while the next N25m is taxed at 23%.

The income tax of this individual under the new tax laws is N7.02 million, which is basically 14.0% of his gross income – just 1.1% higher than his effective tax rate under the old laws. This is still by far very fair when you consider what is obtainable in many other countries of the world where effective tax rate can get to as high as 60% of taxable income.

Will income tax be automatically deducted from bank accounts?

The simple answer is NO. Taxes would not be automatically deducted from the bank account of Nigerians.

This misconception is probably because of the provisions in section 29 of the Nigeria Tax Administration Act which mandates banks and other financial institutions to furnish the tax authority on a quarterly basis information (name and addresses) about their customers with cumulative monthly transactions of N25 million and above for individuals or N100 million and above for a body corporate. Even though the information will help a tax authority know those ELIGIBLE taxpayers evading taxes, the provision does not amount to automatic deduction of taxes from the accounts.

Crucially, if your monthly cumulative transactions as an individual does not amount to N25 million and above or from N100 million for corporate bodies, this provision does not concern you in any way. Only about 5% of the population have bank accounts that have more than half a million in them. So, in essence, more than 90% of Nigerians, which includes all the poor and vulnerable people in Nigeria are not affected by this provision.

Is the Federal Government desperate to raise revenue by taxing the income of Nigerians heavily?

Again, the simple and short answer is NO!

The reforms in the income tax laws are not particularly meant for the federal government to raise more revenue by taxing Nigerians heavily, the reverse is actually the case. The tax laws are meant to relieve poor Nigerians of tax burden. Meanwhile, the greatest beneficiary of personal income tax revenues are the states because Section 3(2) of the Nigeria Tax Administration Act confers jurisdiction on the state tax authority in respect of tax on the income, profit or gains of individuals residing in a state. Therefore, personal income tax is part of the IGR sources of state governments.

The FG only retains income taxes from personnel of the armed forces and personnel of the Nigerian Foreign Service in addition to non-residents (those not living in Nigeria) who derive income or profit from Nigeria. Under the new tax laws, the FG has even exempted members of the armed forces from paying income tax. So, the federal government cannot raise revenue from the income of civilians living in Nigeria as that is the exclusive preserve of the states.

Also, the fact that the tax laws exempted Nigerians earning below N800,000 per annum from income tax shows that the tax laws are not necessarily about raising revenues but reducing tax burden on Nigerians so that they can have more disposable income. The tax laws simply tried to focus on increasing tax compliance by the high-income earners with the state governments being the ultimate beneficiary in any case.

Will the tax laws stifle productivity?

Definitely NOT!

The new tax laws are primarily meant to boost productivity and not stifle it. This is not difficult to prove. First, the wide range of exemptions for both individual taxpayers and small businesses clearly indicates an intention to bring relief to low income individuals and small businesses. Section 56 of the Nigeria Tax Act pegs the income (profit) tax rate for small businesses at 0%.

In section 147 (page 331) of the Nigeria Tax Administration Act, a small company is defined as a company with an annual gross turnover of N100m or less and with total fixed assets not exceeding N250m. This is basically 90% of businesses in Nigeria. A tax law that exempts over 90% of businesses in the country from paying profit tax cannot be stifling productivity under any circumstances!

In fact, the same section 56 of the Nigeria Tax Act pegs the profit tax rate for larger companies at 30% with a proviso that this rate shall be REDUCED to 25% from a date to be determined in an order issued by the President on the advice of the National Economic Council. This provision was a compromise position reached to allay the fears of the Nigerian Governors Forum who felt the initial proposal to progressively reduce CIT for large companies to 25% by 2030 would likely reduce revenue inflows into the federation account since CIT revenue is shared by the three tiers of government.

The provision allows the eventual rate reduction to happen when the states (who are represented in the National Economic Council) are confident that such a reduction will not adversely impact on the federation revenue inflows. The Council will then advise the President to proclaim the order reducing CIT to 25%. If the new tax laws were to be anti-productivity, the company income tax rate would have been jerked up to above the 30% rate in the old Income Tax law.

Conclusion

From the foregoing, it is evidently clear that the income tax provisions in both the Nigeria Tax Act and the Nigeria Tax Administration Act are people-friendly, business-friendly, pro-poor and formulated to stimulate productivity by reducing the amount of money businesses pay as profit taxes or eliminating the profit tax entirely for small businesses. It is important that states through their tax authorities massively educate residents on the correct provisions of the tax laws especially as it pertains to income taxes.

As I conclude, I must emphasise that tax is an obligation that citizens owe their country. There is no valid excuse for any ELIGIBLE taxpayer, especially those who are not classified poor, to shy away from paying their fair share of taxes. This also applies to eligible corporate taxpayers. The new tax laws makes tax evasion more difficult and will bring many eligible taxpayers, hitherto avoiding taxes, into the tax net. As more high net worth individuals and entities are captured in the tax net, they will have more motivation to demand for accountability from elected and appointed leaders across the three tiers of government who manage these tax revenues. This is potentially a very good news for accelerated national development.

The Federal Government has announced that Nigeria’s National Single Window (NSW), a digital platform designed to streamline trade processes and boost export efficiency, will become operational in the first quarter of 2026.

Jumoke Oduwole, Minister of Industry, Trade and Investment, disclosed this at the 31st Nigerian Economic Summit (NES31) in Abuja.

Oduwole also underscored the government’s commitment to accelerating non-oil exports and improving trade facilitation through the African Continental Free Trade Area (AfCFTA) framework, noting that trade diversification remains a central element of the Renewed 8-Point Agenda, with item number seven focusing on export acceleration.

‘We’ve gone back to examine the foundations of our trade relationships, engaging both old and new partners. Our goal is to coordinate what has been happening in the Nigerian economy over the past five years within the AfCFTA framework,’

‘At the beginning of the year, the Ministry released an outlook document stating our priorities for the year, from investment mobilisation to our trade policy review, to industrial policy, and of course, driving exports diversification.

‘One of the pillars that I’ll rest on this morning is our use of the AFCTA as a strategic driver for rebalancing our normal exports. In Q1, the Central Bank released that year-on-year, exports from Nigeria to the rest of Africa had increased by 24 per cent year-on-year.

‘We’ve worked significantly on our national single window. That will be coming live in Q1 of 2026,’

According to her, Nigeria has made tangible progress, including conducting a five-year review of AfCFTA implementation, establishing a central coordination committee for AfCFTA to guide stakeholders.

She also stated that Nigeria has submitted its schedule of tariffs to the AfCFTA secretariat, leading as Africa’s digital trade champion, a title conferred by the African Union.

Oduwole also disclosed that Nigeria has also launched an Air Capital Corridor in partnership with Uganda Air, opening trade routes to 13 African countries for goods such as apparel, cosmetics, and light manufacturing products.

This initiative, she noted, has reduced air freight costs by up to 75 per cent, significantly boosting trade access for small and medium enterprises (SMEs).

She added that Nigeria’s first Trade Intelligence Toolkit has been deployed to support exporters.

‘We’re not only planning policies; we are implementing them. These actions are giving life to AfCFTA and strengthening Nigeria’s trade competitiveness,’ Oduwole said

She further disclosed that the Ministry is negotiating new trade and investment agreements with Nicaragua, Gulf nations, and Brazil, while working closely with the Office of the Vice President and the Ministry of Agriculture on export diversification and deforestation regulations.

Highlighting a recent success, Oduwole cited Nigeria’s collaboration with the International Trade Centre (ITC) and the Government of Japan, which prevented the rejection of Nigerian sesame exports, a commodity that makes up 40 per cent of Japan’s consumption.

The Minister also mentioned ongoing efforts to enhance customs coordination.

‘The ease of doing business part, working with businesses on specific issues, and then other agencies like the work of Nigerian Customs Service, the accelerated de-risking of certain businesses for fast track of their exports and imports, and those are some of the practical steps, some of the companies in this room have had that accreditation, the first round happened, and then we expanded in the later time,’ Oduwole said.

Reacting to a review and endorsement of her book in Businessday on Sunday, 5 October 2025, NLNG-prize shortlisted writer Nikki May has said that the candid review made her cry.

She stated in a note to Nia Ihuoma Alexxis: ‘Your review made me cry. With joy. You got it. I am grateful.’

Nia Ihuoma Alexxis commended Nikki May’s work in response to the discussion on the 2025 Nigeria Prize for Literature shortlist in the Executive Bookshelf in the Sunday edition of BusinessDay.

She stated, ‘Some books entertain you. Some move you. And then there are the ones that take you by the hand, drag you across the pages, and leave you feeling transformed. Nikki May’s This Motherless Land clearly fits into that last category.

‘This Motherless Land is not just a novel; it’s an entire journey. It’s Lagos traffic and Somerset rain; it’s cousins who become each other’s lifeline; it’s grief, jealousy, inheritance, identity – and that complicated kind of love that isn’t romantic but still manages to feel earth-shaking. May gave us Wahala, and now she’s back – bigger, bolder, and, dare I say, even better’.

Nia Alexxis then affirmed, ‘This Motherless Land is a stunning, moving, funny, and unforgettable work. Buy it. Please read it. Lend it out. Snatch it back before your friend forgets.’ And if it does go on to claim the NLNG Prize, you’ll be able to say you knew before the judges did.’

BusinessDay discussed the shortlisted works. Poet, dramatist, and journalist Uzor Maxim Uzoatu previously reviewed the works of Chigozie Obioma, author of The Road To The Country. The remaining piece is Oyin Olugbile’s Sanya.

Nikki May is one of two female writers on the three-person shortlist. Oyin Olugbile is the other. Chigozie Obioma is the only remaining male.

It came down to these three outstanding authors from 152 entries.

A winner of the $100000 prize will emerge this Friday at the Grand Awards Night. The literature prize is the main event, as the Science Prize Committee ruled that none of the entries was good enough.

In a statement, NLNG declared, ‘The Advisory Board of The Nigeria Prize for Science has announced that there will be no winner for the 2025 edition, following the judges’ dissatisfaction with the overall quality of entries received.’

Speaking at a press briefing in Lagos, the Chairman of the Advisory Board, Professor Barth Nnaji, explained that after a rigorous adjudication of the 112 entries submitted this year, none was found suitable for the Prize. He stated that the decision, though difficult, reinforced the Board’s commitment to upholding the integrity of the selection process and protecting the reputation of the prestigious Nigeria Prize for Science.

He noted that the Prize is not just about rewarding scientific output, but also about safeguarding the values of creativity, originality, and scientific rigour that define truly outstanding work.

‘To lower the bar would be to betray the trust of the public and diminish the legacy of the Prize itself,’ Prof. Nnaji affirmed.

He commended the courage and dedication of all who submitted entries, noting that their efforts reflect discipline and a desire to contribute to both national and global scientific discourse. He emphasised that excellence transcends effort, requiring innovation, mastery of craft, and the ability to leave a lasting impact on human thought and development.

The Board chairman called on Nigerian scientists, researchers, and innovators to be inspired by the judges’ verdict to do more and strive higher.

‘The Nigeria Prize exists to celebrate only the finest achievements, work that embodies originality, withstands scrutiny, and elevates scientific discourse. Where these qualities are absent, we cannot, in good conscience, bestow the Prize,’ he stated.

European stocks fell on Monday, with a sudden rise in political uncertainty following the resignation of France’s Prime Minister, Sebastien Lecornu.

The unexpected departure, coming just weeks after his appointment, triggered a broad market sell-off across the region.

The pan-European Stoxx 600 index slipped 0.4 per cent in London morning trade, snapping a five-day winning streak. However, the domestic French market bore the brunt of the investor panic, with the CAC 40 index tumbling 2 per cent shortly after the news broke, reflecting deep concern over the country’s deepening instability.

The event marks another setback for President Emmanuel Macron’s weakened government, which recently saw the collapse of former Prime Minister François Bayrou’s administration amid budget disputes. Analysts suggest this development significantly raises the likelihood of early elections and points to sustained market volatility ahead.

Financial stocks led the decline. French banking stocks were hit hardest, with Société Générale, BNP Paribas, and Crédit Agricole all dropping by more than 5 per cent. The bond market also signalled investor unease as the yield on France’s 10-year bond climbed to a 10-day high of 3.599 per cent.

In currency markets, the euro fell sharply, dropping 0.7 per cent to $1.1658, as traders weighed the implications of a fresh leadership crisis in the Eurozone’s second-largest economy.

Medplus and Mobihealth International are partnering to deepen the nationwide adoption of telemedicine across Nigeria.

This follows the recent nationwide launch of telehealth hubs aimed at offering convenient and accessible doctor consultations.

The partners disclosed that the Medplus-Telehealth collaboration aims to enhance patient care by closing the gap between pharmacy visits and doctors’ follow-ups.

‘Through this strategic alliance, customers across over 150 Medplus stores in 19 states can now walk in and consult licensed doctors virtually, access genuine medications, and receive quick access to primary health care,’ Joke Bakare, founder/CEO, Medplus, said in a statement.

She noted that the innovative partnership is capable of transforming access to primary care one pharmacy at a time, and disclosed that the is at the forefront of transforming pharmacy care in Nigeria.

‘Our partnership with Mobihealth ensures that every Medplus store is not just a place to buy medicine, but a gateway to timely, affordable, and trusted healthcare services,’ Bakare said.

Funmi Adewara, founder/CEO, Mobihealth, stated that the partnership is a major milestone in their mission to make healthcare accessible to all Nigerians.

‘By embedding telehealth hubs in Medplus stores, we are offering people the power to consult a doctor – anytime, anywhere – at an affordable rate, while ensuring genuine medication is always within reach,’ Adewara said.

According to her, the partnership is designed to offer in-store telehealth hubs with private booths and diagnostic support for virtual doctor consultations, walk-in and virtual access to medical care, and e-prescriptions filled on-site or delivered to customers’ doorsteps.

‘This initiative is particularly impactful for busy urban dwellers and underserved populations who often face long wait times, high costs, or limited access to quality medical professionals.’

The Chartered Institute of Educational Practitioners, United Kingdom (CIEPUK), says it will launch a Global Southern Studies/Research Centre (GSSRC) at Paul University, Awka, in partnership with Soochow University, China.

The unveiling of the centre is scheduled for Oct. 17 at the Nwawka Auditorium, Paul University.

According to CIEPUK, the centre aims to enhance academic collaboration, innovation, and sustainable development across the Global South.

It will also serve as a hub for research, knowledge exchange, and international partnerships.

CIEPUK’s African regional office is located at Paul University, where the centre will be based.

Key research areas include technology, climate change, agriculture, health sciences, social development, and cultural exchange.

Officials from the three partner institutions described the initiative as a milestone in academic diplomacy and a model for South-South cooperation and sustainable progress.

The Consular Representative of China in Nigeria is expected to attend the launch.

Marcel Ezenwoye, CIEPUK Global President, who also serves as Director of the Pre-degree Programme at Paul University, signed the formal announcement.

Ezenwoye said the centre would support cross-border collaboration and foster innovative solutions to development challenges.

He added that it would also promote cultural understanding through academic exchange.

Organisers said the centre would facilitate joint publications, patents, policy research, and scholarships, in addition to offering training and exchange opportunities for Nigerian students and researchers.

Stakeholders said the initiative would strengthen Nigeria’s role in global research partnerships and align with both national and regional development goals.

The event is expected to attract dignitaries, academics, students, and international guests.

Recently at the prestigious International Risk Management Awards ceremony held in South Africa, Eneni Oduwole, the 1st vice president and vice-chair of the Governing Council of the Chartered Risk Management Institute of Nigeria (CRMI) emerged winner of the Africa risk management award.

Oduwole’s recognition is seen as a testament to her dedication to capacity development, ethical leadership and the elevation of professional standards within Nigeria and Africa’s risk management ecosystem.

A seasoned risk management and ESG professional and the Founder/Chief Executive Officer of Alter-Ed Limited, Oduwole’s recognition underscores her outstanding contributions to advancing risk management practices, corporate governance and institutional resilience across the continent.

The recognition affirms her professional excellence and leadership.

She states, ‘Being nominated for the Africa Risk Management Awards is both an honour and a humbling recognition of my commitment to advancing risk management, governance, and sustainability in Africa. It reflects the collective efforts of professionals striving to embed resilience and ethical leadership across organisations and industries.

‘To me, this nomination is not just personal-it symbolises the progress of the risk management profession on the continent and the vital role it plays in shaping Africa’s sustainable growth and global competitiveness. It inspires me to continue mentoring, innovating, and contributing to solutions that strengthen institutions and communities,’ she said.

Kevin Ugwuoke, president and chairman of the Council of CRMI in a statement, described Oduwole’s achievement as a reflection of the Institute’s growing international profile and Nigeria’s leadership role in shaping the future of risk management in Africa.

He states, ‘that this award reflects the key value proposition of CRMI, encouraging and equipping risk professionals for excellence, leadership, and dedication in advancing the risk management profession not just within their immediate spheres of influence but most importantly across Africa, and globally.’

The Africa Risk Management Award honours individuals and institutions who have demonstrated innovation, integrity and significant impact in promoting effective risk management frameworks in Africa.

Before founding Alter-Ed Limited, a platform dedicated to professional development and organisational transformation, Oduwole held several senior leadership roles in Nigeria’s bank regulatory, financial services, and manufacturing sectors.

She has been widely recognised for her mentorship, thought leadership, and advocacy for a resilient and ethically driven risk culture across industries.

Her international recognition further cements Nigeria’s position as a hub of professional excellence and highlights CRMI’s pivotal role in promoting best practices, strategic governance, and innovation in risk management across Africa.

Nigeria loses billions yearly to foreign control of its shipping industry. With the new Blue Economy framework, the nation has a once-in-a-generation chance to reclaim its maritime sovereignty, create jobs, and unlock $20 billion in annual value by 2035.

For 15 years, Nigeria has quietly haemorrhaged an estimated $120 billion in potential earnings-not through corruption alone, but through the invisible hand of foreign vessels hauling our crude, containers, and cargo while our own fleet languishes. Every shipment of fertiliser or barrel of crude exported carries with it jobs, expertise, and national sovereignty that should belong to Nigerians. This is not just an economic imbalance; it is a question of sovereignty at sea.

The recently launched Nigeria Maritime Sovereignty and Blue Economy Acceleration Plan (NMS-BEAP 2035) offers the most coherent pathway yet to reverse this drain. It aims to reclaim $5-6 billion in annual freight earnings, raise maritime GDP from 2 to 5 percent, and generate over 250,000 jobs through indigenous fleet participation and shipbuilding. By 2035, the plan envisions that at least 80 percent of Nigeria’s shipping tonnage will be carried by Nigerian-owned vessels, anchoring prosperity within our shores.

The urgency is clear from the data. In 2024, Nigeria’s ports handled 103 million tonnes of cargo and recorded 4,005 vessel calls, yet less than 20 percent of this trade was moved by local operators. The country currently has only 7,000 certified Nigerian seafarers, far short of the 25,000 required by 2035 to sustain the sector. The result is a $7-9 billion annual forex leak, an economic wound that deepens Nigeria’s balance-of-payment pressures and weakens the naira.

But this narrative is reversible. Other nations have shown what political will and structured investment can achieve. In the 1970s, South Korea built a $40 billion shipbuilding industry almost from scratch, anchored on state-backed finance and technology transfer. The Philippines, now one of the world’s largest suppliers of seafarers, trains nearly 375,000 maritime professionals whose remittances generate over $6 billion annually. Nigeria, strategically located on the Atlantic corridor and already commanding West Africa’s largest cargo throughput, can replicate such success: if it aligns policy, finance, and enforcement.

Three pillars are essential for this transformation: finance, enforcement, and human capital.

First, activate and disburse the long-dormant Cabotage Vessel Financing Fund (CVFF). Nigerian shipowners currently borrow at interest rates of 25 percent for three years, while foreign competitors enjoy 4.5 percent loans over 25 years. Unlocking the CVFF with single-digit interest rates and 15-20-year tenors would be catalytic. Paired with a National Shipbuilding Fund and duty-free vessel imports, it could reduce capital costs by as much as 70 percent and stimulate shipyard investment in Lagos, Onne, and Calabar. The NMS-BEAP projects $12-16 billion in CAPEX by 2035, with a healthy 16-19 percent ROI, strong fundamentals for both investors and the Treasury.

Second, enforce cabotage with integrity. Nigeria’s Coastal and Inland Shipping Act (Cabotage Act) was meant to protect indigenous operators, yet it has been gutted by indiscriminate waivers that favour foreign fleets. The proposed Cabotage Joint Taskforce (CJT), uniting NIMASA, the Navy, Customs, and indigenous operators, must operate with transparency and authority. Real-time vessel tracking, publicly accessible waiver logs, and whistleblower incentives can deter sabotage. Without credible enforcement, policy remains paper.

Third, invest strategically in people. Nigeria’s maritime academies are underfunded and outdated. Establishing a National Seafarer and Technical Certification Centre aligned with IMO and STCW standards would close the skills gap and future-proof the workforce for digital, green, and LNG-based shipping. This is not an aspirational goal but an economic imperative. A skilled maritime workforce not only earns forex but also enhances safety, efficiency, and Nigeria’s reputation as a maritime nation.

Reform must also tackle the currency dimension. Freight billing in dollars has created a hidden inflationary pressure, shipping costs alone add an estimated 35 percent to domestic prices. Transitioning to naira-denominated freight settlements, backed by the Central Bank and key exporters, will localise value and stabilise the naira. Such a move is neither isolationist nor illegal: under the WTO’s GATS Article XIV bis, countries may adopt maritime sovereignty measures for national security. The U.S. Jones Act, India’s tonnage tax, and the UK’s post-Brexit cabotage reforms all affirm this principle.

Critics may argue that indigenous control risks inefficiency or rent-seeking. But the alternative, continued dependency, is far costlier. Maritime sovereignty does not mean shutting out competition; it means ensuring Nigerians benefit first from the resources of their own waters. When South Korea protected and nurtured its shipyards, it didn’t stifle trade, it built global champions.

The stakes are not abstract. If Nigeria executes the NMS-BEAP roadmap with discipline, activating CVFF by 2025, enforcing waiver sunsets by 2027, scaling shipyards by 2031, and achieving full sovereignty by 2035, the payoff will be historic. The blue economy could contribute ?30 trillion annually, reduce unemployment, and reposition Nigeria as a maritime hub between the Gulf of Guinea and the global Atlantic trade system.

As the late Capt. Bashir, a pioneer Nigerian mariner, once demonstrated, rising from the defunct National Shipping Line to command a 350,000 MT Saudi Aramco tanker, our talent has never been the issue. What Nigeria lacked was a system. With political resolve and public pressure, symbolised by the ongoing 111,111-signature e-petition, the nation can finally build that system.

Our maritime story need not remain one of loss and dependency. If we act decisively, Nigeria’s blue waters can become a reservoir of prosperity, pride, and sovereignty, anchoring not only ships but also the nation’s economic future.