Economy
Nigeria’s Creditworthiness Improves by Higher Commodity Prices—Report
By Modupe Gbadeyanka
A new report by the UBS Wealth Management’s Chief Investment Office (CIO) has revealed that Nigeria’s creditworthiness improved by higher commodity prices and stronger economic outlook.
The report on Africa’s sovereign credit prospects, an important benchmark used to evaluate the risk of investing in a country, concludes that after years of deterioration, the credit outlook of many African sovereign issuers was stabilizing or improving.
Africa’s sovereigns have been hit by a range of issues in recent years, including the end of the commodity super cycle, depreciating exchange rates and mounting public debt ratios. Energy exporters, such as Nigeria, were particularly affected.
Nigeria, Africa’s largest economy, has seen several credit rating downgrades in recent quarters, but the recent recovery in energy prices and the potential for further moderate upside should bode well for the sovereign’s creditworthiness.
According to the report’s findings, however, macroeconomic prospects in the region are beginning to improve.
The International Monetary Fund (IMF) forecasts real GDP growth to almost double this year in Sub-Saharan Africa, reaching 2.6 percent, while fiscal and current account deficits are expected to have peaked at 4.5 percent and 4 percent last year, respectively.
Key drivers supporting the outlook include rising global growth and trade, a modest recovery in energy and base metal prices, more competitive exchange rates for African currencies, and structural reforms in a range of countries.
Head of Central and Eastern Europe, Middle East and Africa, France and Belgium International at UBS Wealth Management, Ali Janoudi, disclosed that, “The modest energy price recovery over the past 18 months has supported the growth potential of many African economies, but especially Nigeria.
“The more optimistic outlook for sub-Saharan Africa should also affect Nigeria’s economy going forward as the region embarks on a new phase of development.”
On his part, Head of Emerging Market Asset Allocation at UBS Wealth Management’s CIO, Michael Bolliger, noted that, “We expect Nigeria, Africa’s largest economy, to recover from recession this year although it is unlikely that growth rates will return to previous highs.
“A determining factor for the country’s growth outlook will be a successful continuation of the Naira’s exchange rate liberalization.”
UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland.
The operational structure of the Group is comprised of our Corporate Center and five business divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management and the Investment Bank. UBS’s strategy builds on the strengths of all of its businesses and focuses its efforts on areas in which it excels, while seeking to capitalize on the compelling growth prospects in the businesses and regions in which it operates, in order to generate attractive and sustainable returns for its shareholders.
All of its businesses are capital-efficient and benefit from a strong competitive position in their targeted markets.
UBS is present in all major financial centres worldwide. It has offices in 54 countries, with about 34 percent of its employees working in the Americas, 35 percent in Switzerland, 18 percent in the rest of Europe, the Middle East and Africa and 13 percent in Asia Pacific.
UBS Group AG employs approximately 60,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).
By Adedapo Adesanya
The Minister of State for Finance, Mr Taiwo Oyedele, has denied admitting errors in Nigeria’s new tax laws, describing the reports as “misleading” and a false misrepresentation.
In a Sunday statement, attributed to the Presidential Fiscal Policy and Tax Reforms Committee and posted on Mr Oyedele’s official X handle, the reports were described as an unhelpful twisted narrative that risks distorting public understanding and misleading the very people the reforms were designed to benefit.
“Our attention has been drawn to misleading media reports claiming that the Minister of State for Finance, Mr Taiwo Oyedele, has ‘finally admitted errors in the new tax laws.’
“These publications misrepresent the Minister’s statements, falsely alleging that he urged Nigerians to await the outcome of a legislative probe, a process that has long been concluded and the gazetted copies certified by the National Assembly [have been] published since early January 2026.
“This twisted narrative is unhelpful as it risks distorting public understanding and misleading the very people the reforms were designed to benefit,” the statement read.
The committee explained that the minister, while speaking at a fireside chat during the Nigerian Bar Association Section on Legal Practice conference in Lagos, highlighted early gains from the tax reforms.
According to the statement, the gains highlighted by the Minister included a significant increase in the number of informal businesses seeking registration with the Corporate Affairs Commission, as well as a rise in the number of registered taxpayers from about 10 million to over 100 million nationwide.
These impressive results stem from the robust design and progressive nature of the new laws, including an exemption of small companies from tax, increased exemption thresholds for low-income earners, tax exemptions on basic consumption items like food, education, healthcare, transportation, and rent, and the introduction of the Tax Ombud to protect taxpayer rights, it stated.
The statement added, “The Minister contrasted the transformative changes in the new laws with the regressive provisions in the old laws. He, however, emphasised that no law is perfect.
“Therefore, ongoing stakeholder engagement is essential to identify and address any errors or gaps for appropriate legislative updates through Finance Bills as part of a continuous improvement process.”
By Adedapo Adesanya
Lafarge Africa Plc will change its corporate name to HBM Nigeria Plc, reflecting new majority ownership by China’s Huaxin Cement Co., subject to approval by shareholders of the 67-year old cement maker.
The company will ask shareholders to approve the change of its corporate identity to HBM Nigeria Plc at its 67th Annual General Meeting scheduled for April 30, 2026, in Lagos.
The proposed name change is part of a broader AGM agenda that also includes financial reporting, dividend approval, and board restructuring.
The rebrand marks a new chapter following Holcim’s exit and signals Huaxin’s intent to deepen its footprint in Nigeria’s construction materials sector.
The company highlighted the proposed name change as a key special resolution requiring shareholder approval at the meeting. Management noted that the amendment will formally alter Clause 1 of its Memorandum of Association, redefining its legal identity.
Lafarge Africa Plc reported strong financial performance for the 2025 financial year, underscoring the backdrop to its proposed strategic shift. The company recorded significant growth across key financial metrics.
Revenue rose to N1.1 trillion in 2025, up 53 per cent from N696.8 billion in 2024. Profit after tax increased from N100.1 billion to N273 billion, representing a 173 per cent growth. Operating profit climbed from N193 billion to N392 billion, driven by cost optimisation and operational efficiency.
Earnings per share surged from N6.22 to N17, reflecting improved profitability. The company has proposed a final dividend of N6.00 per share, subject to shareholder approval and applicable withholding tax.
Huaxin Cement acquired a controlling 83.81 per cent stake in Lafarge Africa Plc from the Holcim Group for roughly $1 billion. The deal, finalised in late 2025, marks Holcim’s complete exit from Nigeria to focus on other markets, with Huaxin aimed at expanding its footprint in Africa.
The chairman of Lafarge Africa, Mr Gbenga Oyebode, said Nigeria’s market holds vast potential with its positive growth indices, increasing urbanisation, and infrastructure demand.
“This development will further solidify Lafarge Africa’s position as a leading contributor to Nigeria’s infrastructure and economic growth. Nigeria’s market holds vast potential with its positive growth indices, increasing urbanisation, and infrastructure demand. We remain committed to leveraging these opportunities while maintaining our focus on sustainability and innovation.”
Lafarge expanded into Nigeria in 2001 through the acquisition of Blue Circle, thereby taking over its stake in West African Portland Cement Company (WAPCO), later rebranding it as Lafarge Cement WAPCO Plc and significantly increasing production capacity with new plants and infrastructure in Ogun State.
By Adedapo Adesanya
The Naira extended its gain on the Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, April 10, by 0.18 per cent or N2.43 to trade at N1,356.89/$1 compared with the previous day’s N1,359.32/$1.
It also improved its value against the Pound Sterling in the same market window by N16.01 to close at N1,828.82/£1 versus N1,844.83/£1, but lost N3.40 against the Euro to sell at N1,592.58/€1 versus N1,589.18/€1.
In the parallel market, the Nigerian Naira further appreciated against the Dollar during the session by N5 to settle at N1,385/$1 compared with the previous day’s rate of N1,390/$1.
With the FX market operating with greater liquidity and efficiency, market participants now transact without extraordinary interventions from the Central Bank of Nigeria (CBN).
However, external reserves fell for 16 straight days through April 8, the longest declining run since July 2025. The central bank’s foreign exchange holdings declined by $1.1 billion in the period to $48.94 billion, the lowest level since February 19, the lender’s data show.
After initially weakening, as the Iran war broke out, the Nigerian currency has recovered losses and is one of only four of 23 African currencies still standing in the period.
The CBN had pledged to stabilise the Naira and has boosted sales of high-yield short-term debt to attract inflows of Dollars.
As for the cryptocurrency market, Bitcoin (BTC) and other major cryptocurrencies fell after US Vice President J.D. Vance announced that the country and Iranian negotiators had failed to agree to an extended ceasefire. BTC lost 1.9 per cent to sell at $71,549.08.
The parties met in Pakistan on Saturday to negotiate an agreement after the US’s nearly six-week-long campaign against Iran. VP Vance said at a press conference afterwards that the US had “not reached an agreement.”
Cardano (ADA) fell 4.3 per cent to $0.2398, Solana (SOL) depreciated by 2.7 per cent to $82.22, Binance Coin (BNB) slumped 2.2 per cent to $593.61, Dogecoin (DOGE) went down by 1.9 per cent to $0.0912, Ethereum (ETH) weakened by 1.4 per cent to $2,214.56, and Ripple (XRP) crashed by 1.3 per cent to $1.33.
However, TRON (TRX) appreciated by 0.9 per cent to $0.3217, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
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