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The International Monetary Fund (IMF) has publicly highlighted the detrimental effect of Illicit Financial Flows (IFFs) out of Nigeria, noting that these leakages are significantly worsening the country’s persistent revenue problem.

Kristalina Georgieva, Fund’s Managing Director, IMF, pledged a renewed institutional focus on tracing such flows to effectively plug the fiscal leakages plaguing Nigeria’s economy.

‘We believe that for countries like Nigeria, the IMF’s renewed focus on tracing Illicit Financial Flows could provide a blueprint for plugging the fiscal leakages that have long undermined revenue generation and sustainable growth, ‘she said at the ongoing 2025 Annual Meetings of the IMF and World Bank in Washington, DC.

Georgieva said that the IMF’s enhanced strategy for identifying and tracking Illicit Financial Flows could provide a working blueprint for Nigeria to address the entrenched fiscal vulnerabilities that have long undermined its attempts at sustainable revenue generation and overall growth.

According to her, illicit financial flows, which include stolen public funds, proceeds from criminal activities, and untraceable digital transactions, continue to erode governance systems, drain public resources, and cripple developmental efforts, especially in developing economies. officials

Pinnacle Oil and Gas Limited has been named the Midstream/Downstream Company of the Year by the National Association of Energy Correspondents (NAEC).

The recognition celebrates Pinnacle’s outstanding contributions to operational excellence, infrastructure development, investment and innovation in Nigeria’s oil and gas industry.

In its award announcement, the body of national energy editors commended Pinnacle Oil and Gas Limited for its unwavering commitment to efficiency, quality service delivery, and sustained investment in infrastructure that strengthens the nation’s energy value chain. Over the years, Pinnacle Oil and Gas Limited has distinguished itself through an integrated range of midstream and downstream services that enhance energy availability and reliability.

The company operates one of West Africa’s most advanced offshore mooring systems and onshore terminals, enabling efficient petroleum handling and nationwide distribution. Through its bulk petroleum distribution operations, Pinnacle ensures steady access to quality fuels across the country, supported by a robust logistics and storage network.

Its growing chain of retail and commercial retail outlets provides premium petroleum products to individuals, businesses and industrial clients, while its expanding line of high-performance lubricants and energy solutions is designed to meet the evolving needs of customers in every sector. Pinnacle offers bulk fuel supply solutions for industrial clients and fleet operators, while its flagship lubricant brands, namely, PIBREUM and DYZEUM, are specially formulated to meet the performance needs of heavy-duty and light vehicles, as well as industrial machinery.

In line with its retail expansion strategy, two additional service stations are scheduled to commence operations in October, one in Makurdi, Benue State Capital and another in Ikotun, Lagos State. They are meant to further strengthen the company’s nationwide presence.

The federal government has urged members of the Non-Aligned Movement (NAM) to strengthen solidarity and deepen cooperation in addressing global challenges such as climate change, debt crises, and inequality.

Nigeria made the call on Tuesday through Dunoma Umar Ahmed, permanent secretary, Ministry of Foreign Affairs, during the 19th Ministerial Meeting of the Coordinating Bureau of NAM held in Kampala, Uganda.

In his address, Ahmed reaffirmed Nigeria’s commitment to the core principles of NAM, solidarity, justice, equity, and peace, while commending President Yoweri Kaguta Museveni and the people of Uganda for their hospitality and leadership of the movement.

‘The world today faces multiple, interlinked crises from climate-induced disasters and terrorism to pandemics and widening inequalities.

‘These burdens cannot be borne by any nation alone. We must strengthen solidarity and cooperation to achieve sustainable development, which remains the surest path to peace, security, and prosperity,’ Ahmed said.

The Permanent Secretary underscored the urgent need for developed countries to meet their climate finance commitments, stressing that developing nations continue to show leadership in environmental action despite limited resources.

He called for the fulfilment of the long-overdue $100 billion annual climate finance pledge by developed countries and a scale-up to at least $1 trillion annually to meet the climate and sustainable development goals of the Global South.

Ahmed highlighted Nigeria’s ongoing domestic reforms aimed at mobilising private capital for green investments. He cited the creation of the National Credit Guarantee Company and coordinated efforts across key ministries, solid minerals, finance, power, and environment to integrate green guarantees as tools to de-risk investments and attract private sector financing.

According to him, instruments such as green guarantees could mobilise five to six times more financing for sustainable development than conventional tools.

He praised initiatives like the Green Guarantee Group (GGG) for catalysing innovative climate solutions but stressed the need for stronger support from multilateral banks and global partners to lower the cost of green capital. Reaffirming Nigeria’s long-standing position on the Middle East crisis, Ahmed declared that the Palestinian question remains central to the Non-Aligned Movement’s identity and mission.

‘Nigeria condemns the ongoing occupation and the grave violations of international law and human rights suffered by the Palestinian people. We stand firmly with their legitimate aspirations for statehood and self-determination,’ he said. He reiterated Nigeria’s support for a two-state solution, with an independent State of Palestine based on the 1967 borders and East Jerusalem as its capital.

Ahmed also called for urgent reform of global multilateral institutions, arguing that the current system no longer reflects present-day realities or ensures fair representation.

Without reform, he warned, international governance risks losing legitimacy and trust among nations.

Ahmed pledged Nigeria’s continued dedication to the founding principles of the Non-Aligned Movement and its readiness to collaborate with other member states in building a world anchored on equity, mutual respect, and shared prosperity.

‘The challenges before us are formidable, but with solidarity, cooperation, and principled leadership, they are not insurmountable,’ he stated.

As Nigeria enters a new era of monetary policy easing, the Central Bank of Nigeria (CBN) is positioning itself to attract global investors through a mix of reforms, improved macroeconomic indicators, and renewed policy credibility.

While favourable external conditions have often supported Nigeria’s economic growth, sound domestic policies remain the true foundation for sustained progress. The exchange rate unification policy of the CBN and other reforms that have contributed to a decline in inflation are beginning to open the economy to greater global investor interest. With the re-emergence of monetary policy easing after a five-year break, Nigeria is signaling a drive to attract new investments, lower lending costs, and advance the government’s broader plan for growth and stability.

Nigeria’s economy has held up remarkably well in recent months despite a decline in crude oil prices, which account for over 90 percent of its foreign exchange earnings. Recent indicators, growth in Gross Domestic Product (GDP), a drop in the inflation rate, relative exchange rate stability, an increase in external reserves, and a rise in capital inflows, all point to an economy regaining momentum.

Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria, noted that monetary policy implementation has improved significantly, strengthening the resilience of the Nigerian economy. ‘Findings show that in the past, many economies were reluctant to let their exchange rates move freely. But with better-anchored inflation expectations and stricter macroprudential regulation, Nigeria has increasingly allowed the exchange rate to act as a shock absorber, while the central bank has shifted its focus toward stabilizing economic activity,’ he said.

According to him, sustaining the ongoing reforms and building on stronger policy foundations could help Nigeria turn its hard-won resilience into lasting stability and long-term economic growth.

Monetary policy easing began last month when the CBN-led Monetary Policy Committee (MPC) cut the benchmark interest rate by 50 basis points from 27.5 percent to 27 percent, marking the first rate cut since the tightening cycle began five years ago. The decision, reached at the 302nd MPC meeting, reflects a deliberate shift toward supporting economic growth amid easing inflationary pressures.

The move follows five consecutive months of slowing inflation, with projections indicating continued disinflation through the remainder of 2025. This easing phase signals the CBN’s confidence in a stabilising macroeconomic environment and its intention to stimulate economic activity by lowering borrowing costs, improving liquidity in the banking sector, and supporting stronger consumer spending and investment growth.

Adeyemi Adeniran, Statistician-General of Nigeria and CEO of the National Bureau of Statistics (NBS), said the latest Consumer Price Index (CPI) report showed headline inflation dropped from 21.88 percent in July to 20.12 percent in August. ‘Headline inflation (year-on-year) moderated further to 20.12 percent in August 2025, from 21.88 percent in July, driven by the decline in both food and core inflation. Besides, the second-quarter GDP report solidly puts growth within the quarter at 4.23 percent, representing a four-year high, up from 3.13 percent in the first quarter,’ he said.

The NBS report showed that growth was driven by improvements across both the oil and non-oil sectors. Stability in the oil sector combined with expansions in agriculture, industry, and services contributed to above-average performance. The GDP breakdown revealed that the oil sector grew by 20.46 percent in the second quarter of 2025, compared to 1.87 percent in the first quarter, propelled by a significant rise in crude oil production.

Olayemi Cardoso, governor of the CBN explained that monetary policy easing became necessary following a review of macroeconomic developments. According to him, the MPC’s decision to ease policy was made in light of improving inflation trends. ‘The committee’s decision to lower the monetary policy rate was predicated on the sustained disinflation recorded over the past five months, projections of declining inflation for the rest of 2025, and the need to support economic recovery efforts,’ Cardoso said.

Bukola Bankole, Partner and Corporate Finance Expert at TNP, described the 50-basis-point cut as a modest but symbolic move, marking the first break from months of aggressive tightening. ‘For businesses already borrowing at rates above 30 percent, this adjustment will not immediately ease financing costs, but it signals recognition that growth cannot be perpetually stifled in the name of inflation control,’ she said.

According to her, ‘For investors, Nigeria’s yield story remains unchanged because even after the cut, local instruments remain among the most attractive across frontier and emerging markets. So, a half-point change does little to alter that. The real test is whether inflation continues to ease and whether the Naira can achieve meaningful stability. Inflation in Nigeria is not demand-driven; it is cost-push, reflecting exchange rate volatility, subsidy removal effects, high energy costs, and food supply disruptions. Against this backdrop, further hikes would have been the wrong medicine.’ Bankole further noted that the MPC decision reflects an effort to balance vigilance on inflation with the need to create room for credit expansion and investment. However, she warned that without consistency, stronger fiscal alignment, and structural reforms addressing inflation’s root causes, the cut would remain largely symbolic. ‘If those elements are in place, this small cut could mark the beginning of a sustainable policy mix that supports growth without abandoning the fight for price stability,’ she said.

Bismarck Rewane, managing director of Financial Derivatives Company Limited, also expressed optimism, saying that the remainder of 2025 appears poised for stronger performance, supported by foreign currency inflows and stable commodity prices.

In its continued effort to manage inflation, the CBN recently hosted the Monetary Policy Forum 2025, featuring fiscal authorities, legislators, private sector players, development partners, experts, and scholars under the theme ‘Managing the Disinflation Process.’ The forum aimed to improve monetary policy communication, foster dialogue, and strengthen collaboration on issues shaping monetary policy.

At the event, Cardoso emphasised that the apex bank’s focus remains on sustaining price stability, transitioning to an inflation-targeting framework, and developing strategies to restore purchasing power and ease economic hardship. He reiterated that the CBN is maintaining a disciplined approach to monetary policy, aimed at curbing inflation while stabilising the economy.

‘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,’ Cardoso said. ‘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.’

The CBN has also prioritised strengthening the banking sector, introducing new minimum capital requirements for banks (effective March 2026) to enhance resilience and prepare the financial system for Nigeria’s ambition of a $1 trillion economy. These reforms underscore the Bank’s commitment to creating an enabling environment for inclusive economic development. However, Cardoso stressed that achieving macroeconomic stability requires sustained vigilance and proactive monetary management.

‘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 stated. According to him, transitioning from an exchange rate targeting framework to an inflation-targeting framework aligns with the Bank’s determination to control inflation in line with its price stability objectives.

The non-oil sector also recorded notable progress, expanding by 3.64 percent in the second quarter of 2025 compared to 3.19 percent in the previous quarter. Its contribution to GDP stood at 95.95 percent, only slightly lower than the 96.03 percent recorded in the first quarter, despite the strong rebound in oil output. Sectoral analysis showed that agriculture GDP grew by 2.82 percent in the second quarter, up from 0.07 percent in the first quarter and 2.60 percent in the same period last year. The industrial sector, which had grown by 3.72 percent in the second quarter of 2024, nearly doubled to 7.45 percent in the second quarter of 2025. However, services GDP slowed slightly to 3.94 percent, compared to 4.33 percent in the previous quarter. Services, agriculture, and industries contributed 56.53 percent, 26.17 percent, and 17.31 percent to overall GDP respectively.

Experts noted that the latest GDP report confirms the economy is on the right track, though more coordinated policies are needed to deepen productivity. The Chairman of the Nigeria Economic Summit Group (NESG), Niyi Yusuf, said the report highlights the benefits of ongoing macroeconomic reforms, while urging the government to do more to unlock the economy’s full potential. ‘This is steady progress in the right direction. We need to stay the course, maintain momentum, and drive for broad-based growth across all sectors. Pro-growth regulations, predictable justice systems, private sector investment in critical areas, and improved security are all essential to fully unlock the economy’s potential,’ he said.

The World Bank also offered a positive outlook on Nigeria’s economy, forecasting three consecutive years of uninterrupted growth. In its June *Global Economic Prospects* report, the Bank projected Nigeria’s growth at 3.6 percent in 2025, 3.7 percent in 2026, and 3.8 percent in 2027. However, it downgraded global growth forecasts for 2025 by 0.4 percentage point to 2.3 percent, citing higher tariffs and growing uncertainty as major headwinds for most economies.

The report noted that global growth in 2025 would be the weakest outside of a recession since 2008, while inflation was projected to reach 2.9 percent, remaining above pre-pandemic levels due to tariffs and tight labor markets. For Sub-Saharan Africa, growth is expected to strengthen to 3.7 percent in 2025 and average 4.2 percent between 2026 and 2027, assuming global conditions remain stable, inflation continues to decline, and regional conflicts ease.

Indermit Gill, World Bank Group Chief Economist and Senior Vice President for Development Economics, warned that ‘outside of Asia, the developing world is becoming a development-free zone.’ Similarly, Ayhan Kose, the Bank’s Deputy Chief Economist and Director of the Prospects Group, observed that emerging and developing economies once benefited from trade integration but now find themselves on the frontlines of a global trade conflict.

Recently, Nigerians watched on national television as some prominent Southeast politicians visited the Aspanda Market in the former Trade Fair Complex in Lagos over recent demolitions in that vicinity by Lagos State authorities. The visit spoke of the high-octane nature of an increasingly contentious issue, fraught with allegations of bigotry and recriminations. I watched too, with bemused scepticism.

I have no sympathy for those whose buildings get demolished because they were built out of zone and in violation of extant building and land codes. That is as it should be. I say so as a technocrat and erstwhile policymaker and administrator. Laws are made to be respected. That’s what the rule of law is all about. Such persons should not complain about the consequences of their greed and stupidity.

Such things happen because the Nigerian society is now so unapologetically transactional and imbued with impunity that some affluent people believe that they can subjugate rules and regulations, violate statutory laws and still buy their way out of attendant reprisals. Nowhere is such an attitude more rampant than with the acquisition of landed property in major cities. Green areas, public parks, golf courses and playgrounds have been carved up and sold to rich speculators. The same fate has befallen water causeways and even lands earmarked for special public projects. Invariably, the master plans of major cities, including Abuja, have been at risk.

Nevertheless, there comes a point when discretionary authority and powers need to be applied in law enforcement matters. That’s what adaptive leaders do. That’s what good governance does. Buildings should be demolished when they are unfit for habitation and pose a clear and present danger to the general public. But buildings should not always be demolished simply because they violate zoning laws. And that’s not to say that zoning laws should be disrespected or that impunity should not be punished.

Lately, there has been a spate of demolitions in Lagos State. Some suggest such demolitions are punitively targeted. The contention is debatable. Yet, as policy, demolitions cannot be used for gerrymandering or disenfranchisement. But that is not the kernel of this write-up. The point here is that in a nation with over 75 million housing deficits, of which 17 million of the shortfall is in Lagos, demolishing an already completed building is defeatist and not the best policy option or punishment. Such practice is also not in the best interest of the larger society. It is myopic, except there are ulterior motives. As a social scientist, I favour, without apologies, the use of history in present and future decision-making, especially in governance matters. That use of history may apply to ongoing demolitions.

Many years back, in the late 1980s, there was an interesting and celebrated case in New York City that speaks to the zoning, building code enforcement, respect for the rule of law and discretionary authority. It also speaks to arbitration and legal adjudication of such matters. In the New York case, a luxury high-rise building was approved for construction on the Upper East Side of Manhattan. The building’s structure, height, floors, air rights and related codes were all sorted out, and the approvals and permits were granted. The highbrow building was mixed commercial and residential. This meant that the ground and lower floors could house high-end stores, and the rest of the 30-floor building would house various-sized apartments.

As it happened, the builder made a subjective internal adjustment to accommodate the then-fashionable high ceilings in all the residential apartments. This meant an additional three feet per floor outside the approved plan. This did not seem like a big deal. But the additional three feet per floor resulted cumulatively in an extra 75 feet being added to the height of the building. Technically, this equated with adding 5 floors to the original design. The high-rise building was still the stipulated 30 floors, but the height was far in excess of what was statutorily approved.

Consequently, the additional height of the building violated the air rights of some neighbouring buildings. It was also at variance with the approved design. The owners and occupants of the contiguous buildings filed complaints. The city’s housing authorities that issue construction permits investigated and found that the complaints were meritorious. There were deviations from the approved plan and, therefore, violations. What to do?

The high-rise building could not be certified for occupancy. The developers were losing money. The city was also losing money from property taxes via sales of the apartments. Litigation seemed likely but would be time-consuming and financially costly for both sides. The parties submitted to arbitration. At mediation, it was determined that the only practical remediation required to meet compliance would be to knock off the equivalent of five floors in order to bring the building in line with extant codes and the approved building plan. That solution itself would also be costly for the developer. So, there was a need to find common ground, a win-win solution, for the developer, the city authorities and potential investors/owners of the condominium apartments.

While the unapproved and uncertified building stood vacant for several months, arbitration commenced, aimed at protecting public and private interests by allowing the law to adapt to some discretionary flexibility, away from rigid enforcement that would be totally punitive. In a city that badly needed more houses to meet growing demands and existing shortfalls, demolition, though an option, would be the final resort, and only if all else failed.

Two issues were critical to agreeing to arbitration. Both the developer and city supervisors were found not to have been wilfully negligent of the law. Nonetheless, the developers took some architectural and structural liberties, and the city building supervisors were lax in their due diligence and thus failed to catch the additional three-foot-per-floor adjustment at the foundational level, where it could have been stopped or the building plan revised accordingly. Thus, the city did not meet its remit obligations fully. While the developer met the approved floor specifications, it failed to comply with the overall building height specifications.

Rather than pursue demolition, which would have resulted in obliterating about 50 apartment units of various sizes and configurations, the city decided to allow the building to stand. For consequences, the developer would allocate three contiguous floors out of the thirty floors to the city as low-income houses for subsidised rents over thirty years. The developer would still collect rent for those three floors of about thirty units, but not at a premium market rental rate. It was also agreed that a separate entrance would be created for the city-assigned floors, thus segregating that section from the remaining twenty-seven luxury stores and luxury home floors. Contextually, the building would still be designated a luxury high-rise, but with some intrinsic conditionalities.

In essence, the errant developer was sanctioned and punished, as required by law, but not by way of punitive demolition, in which the developer, investors and the city would all be losers. The mutually accepted outcome was the essence of decision-making at its best. The non-exculpatory resolution also served as a deterrent for future developers.

As Nigerians continue to witness completed buildings, some costing billions, being demolished in parts of Lagos State, especially, as well as in other parts of the federation, I often wonder if the intent of such demolitions is not conceptually punitive. If so, the rule of law has gone awry. Everyone loses, even though it may seem that the developer or owner incurs the greatest loss.

While I’m unsympathetic to lawbreakers, the ongoing policy of outright demolition is, without doubt, hare-brained. Lagos State still has a high 17 million housing deficit. And most buildings targeted for demolition could have been stopped at the foundational level, but for obvious complicity, when approvals are granted by a criminal cartel of local government and state officials, bereft of any moral compass, who take advantage of very greedy and stupid rich persons.

Besides outright demolition, several policy options exist for resolving these matters. There ought to be some compartmentalisation of the problems and solutions. State governors have statutory authority to revoke the right of occupancy on any land in the public interest. So, rights to a house or structure built on a water causeway, green area, or access road, rather than being demolished, could be rendered a state property with a statutory revocation. The city, local government or state authorities and the owner of the structure can then negotiate a settlement that might save the property, built at great cost, from demolition. The property could also be placed in a high-luxury property tax bracket. Such a decision will avert outright demolition and help in reducing the national housing deficit.

Demolitions might seem the only way out when the rule of law goes awry. But they are not, since demolitions also have unintended binary consequences. They stultify housing development. They also disincentivise and chase investors and developers away. The greatest danger, however, especially in the case of Lagos State, is the contention that such demolitions target certain ethnicities. That policy choice is dangerous, whether such allegations are myth or reality. Since various policy options still exist for addressing thorny zoning questions, political leaders must explore every option before embarking on a linear policy of outright demolition that might backfire or, in the long run, hurt public interest.