Economy
ABCON Raises Alarm Over Forex Supply Shortage from CBN
By Adedapo Adesanya
The Association of Bureau De Change Operators of Nigeria (ABCON) has lamented over the foreign exchange (forex) crisis facing the country, saying that supply from the Central Bank of Nigeria (CBN) has reduced drastically.
The association’s president, Mr Aminu Gwadabe, made this disclosure during a recent interview on Channels Television.
He noted that the forex crisis was as a result of massive speculation, hoarding and panic buying, which have put the local currency under serious pressure.
He complained that about $3 billion was waiting to be wired offshore by investors should the pandemic disappear and economic activities resume fully.
He lamented that a lot of Nigerians have lost confidence in the value of the Naira and are currently in a panic-buying mood.
‘‘Most Nigerians have overnight suddenly become Bureau De Change operators with many exchanging their Naira for Dollars, believing that the Naira could be devalued anytime soon.
“Another troubling aspect is that some SMEs have shut down their businesses and exchanged the proceeds for Dollars and now trading in currency exchange,” he alerted.
He warned that this remained an unhealthy development for the economy because such actions were putting undue pressure on the Naira.
He explained that various financial forecast of the economy predicted that diaspora remittances would be down by 20 percent, adding that investors are checking out while crude oil prices are also at an all-time low.
He said despite the coronavirus pandemic, which has slowed down economic activities, Nigerians were still in need of foreign exchange to pay for their wards schools fees and upkeep abroad while others need same for medical bills.
He said the lack of diaspora inflow into the economy and the suspensions of inbound international flights have all combined to limit the sources of forex for BDC operators.
The ABCON boss warned against the disparity in the country’s exchange rate, saying no country can afford to fold its arms and watch its currency slide into a massive free fall.
He noted that there cannot be a different rate for the same product, saying the way to go remains a unification of the country’s exchange rates in order to move from price volatility to price stability if the economy is to be prevented from total collapse.
‘‘There have been a lot of criticisms against the multiplicity of the country’s exchange rate regime. Government and all those concerned must work to remove all the barriers hindering the attainment of a unified exchange rate figures.
“There are a lot of questions about distortions, transparency and resource allocations. But if all the rates are unified, all these cynicism about the exchange rate will be automatically removed, thereby shutting the doors against rent-seekers who thrive on hoarding and speculative buying of currencies.
Mr Gwadabe also kicked against the activities of rent-seekers in the forex market, saying their continued presence willing bring about serious danger because they are not adding value to the economy.
The ABCON boss charged the government and its regulatory agencies to look at a change in methods, saying forex inflow may not happen anytime soon because every country and investors are hoarding same due to the coronavirus pandemic.
He challenged the government to think outside the box and look towards other sources of foreign exchange inflow, especially the Diaspora remittances.
‘‘This is a creative destruction period. We need to look into our Diaspora remittances. What are the challenges? Why are we not receiving the exact $29 billion Diaspora Remittance into the economy per annum which is far more than the receipt from crude oil per annum.”
By Aduragbemi Omiyale
The acquisition of the Bullet brand portfolio from Sun Mark has been completed by Champion Breweries Plc, a statement from the company confirms.
This marks a transformative milestone in the organisation’s strategic expansion into a diversified, pan-African beverage platform.
With this development, Champion Breweries now owns the Bullet brand assets, trademarks, formulations, and commercial rights globally through an asset carve-out structure.
The assets are held in a newly incorporated entity in the Netherlands, in which Champion Breweries holds a majority interest, while Vinar N.V., the majority shareholder of Sun Mark, retains a minority stake.
Bullet products are currently distributed in 14 African markets, positioning Champion Breweries to scale beyond Nigeria in the high-growth ready-to-drink (RTD) alcoholic and energy drink segments.
This expansion significantly broadens the brewer’s addressable market and strengthens its revenue base with an established, profitable portfolio that already enjoys strong brand recognition and consumer loyalty across multiple markets.
“The successful completion of our public equity raises, together with the formal close of the Bullet acquisition, marks a defining moment for Champion Breweries.
“The support we received from both existing shareholders and new investors reflects strong confidence in our long-term strategy to build a diversified, high-growth beverage platform with pan-African scale.
“Our focus now is on disciplined execution, integration, and delivering sustained value across markets,” the chairman of Champion Breweries, Mr Imo-Abasi Jacob, stated.
Through this transaction, Champion Breweries is expected to achieve enhanced foreign exchange earnings, expanded distribution leverage across African markets, integrated supply chain efficiencies, portfolio diversification into high‑growth consumer beverage categories, and strengthened presence in the RTD and energy drink segments.
The acquisition accelerates Champion Breweries’ transition from a regional brewing business to a multi-category consumer platform with continental reach.
Bullet Black is Nigeria’s leading ready-to-drink alcoholic beverage, while Bullet Blue has built a strong presence in the energy drink category across several African markets.
By Adedapo Adesanya
Emerging market fintech firm, M-KOPA, has announced plans to deepen its reach in Nigeria to the South South and South East regions, starting with Edo this year, after providing N231 billion in credit to over 1 million customers in the country.
The firm released its first Nigeria-focused Impact Report, which showed that Nigeria is M-KOPA’s fastest-growing market and fastest to reach the milestone.
Since its foray into the Nigerian market in 2019, M-KOPA has been working to dismantle barriers to financial inclusion by providing flexible smartphone financing and digital financial tools that align with how people in the informal economy earn and manage their money.
It operates in six states in the country, including Lagos, Ogun, and Oyo, among others.
The report highlights the company’s contribution to income generation, digital inclusion and economic opportunity for Every Day Earners across the country.
The report showed that M-KOPA has enabled 290,000 first-time smartphone users, while 56 per cent of agents accessed their first income opportunity through the platform.
It showed high income and livelihood gains among its users, with about 77 per cent of customers leveraging smartphones or digital loans obtained through the platform to generate income, indicating that access to financed devices is directly supporting micro-entrepreneurial activity and informal sector productivity.
Furthermore, 75 per cent of users report higher earnings since gaining access to M-KOPA’s services, suggesting measurable improvements in personal revenue streams. On the distribution side, 99 per cent of agents disclose increased earnings, reflecting positive spillover effects across the company’s value chain.
In addition, 81 per cent of long-term customers state that their household expenses have improved, pointing to enhanced financial stability and better consumption smoothing over time.
Speaking on the report, Mr Babajide Duroshola, General Manager, M-KOPA Nigeria, said, “Nigeria represents extraordinary potential, and we’re proud that it has become M-KOPA’s fastest-growing market. Our Impact Report shows that when Every Day Earners gain access to the right digital and financial tools, they use them to create stability and long-term progress for their families. This is about access that unlocks opportunity and sustained prosperity.”
On its expansion plans Nigeria-wide, the M-KOPA helmsman said, “Many of the states we are considering are already similar to the ones we are currently in proximity… So, there is proximity and similarity between these states, and that’s what we are going to do, starting with Edo.”
He noted that as M-KOPA Nigeria continues to expand, the focus remains on ensuring more everyday earners gain access to the digital and financial tools they need to build resilient, prosperous futures in Nigeria’s rapidly digitising economy.
By Aduragbemi Omiyale
The ban on the export of raw shea nuts from Nigeria has been extended by one year by President Bola Tinubu.
A statement from the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, on Wednesday disclosed that the ban is now till February 25, 2027.
It was emphasised that this decision underscores the administration’s commitment to advancing industrial development, strengthening domestic value addition, and supporting the objectives of the Renewed Hope Agenda.
The ban aims to deepen processing capacity within Nigeria, enhance livelihoods in shea-producing communities, and promote the growth of Nigerian exports anchored on value-added products, the statement noted.
To further these objectives, President Tinubu has authorised the two Ministers of the Federal Ministry of Industry, Trade and Investment, and the Presidential Food Security Coordination Unit (PFSCU), to coordinate the implementation of a unified, evidence-based national framework that aligns industrialisation, trade, and investment priorities across the shea nut value chain.
He also approved the adoption of an export framework established by the Nigerian Commodity Exchange (NCX) and the withdrawal of all waivers allowing the direct export of raw shea nuts.
The President directed that any excess supply of raw shea nuts should be exported exclusively through the NCX framework, in accordance with the approved guidelines.
Additionally, he directed the Federal Ministry of Finance to provide access to a dedicated NESS Support Window to enable the Federal Ministry of Industry, Trade and Investment to pilot a Livelihood Finance Mechanism to strengthen production and processing capacity.
Shea nuts, the oil-rich fruits from the shea tree common in the Savanna belt of Nigeria, are the raw material for shea butter, renowned for its moisturising, anti-inflammatory, and antioxidant properties. The extracted butter is a principal ingredient in cosmetics for skin and hair, as well as in edible cooking oil. The Federal Government encourages processing shea nuts into butter locally, as butter fetches between 10 and 20 times the price of the raw nuts.
The federal government said it remains committed to policies that promote inclusive growth, local manufacturing and position Nigeria as a competitive participant in global agricultural value chains.
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