Economy
Nigeria Needs Double-Digit Growth to Reduce Poverty—Yuguda
By Aduragbemi Omiyale
If Nigeria intends to reduce poverty and provide for the welfare of its citizens, then it must ensure that the economy records a double-digit growth rate.
This was the submission of the Director-General of the Securities and Exchange Commission (SEC), Mr Lamido Yuguda, at the annual workshop of the Chartered Institute of Stockbrokers (CIS) with the theme Leveraging the Financial markets to achieve double-digit economic growth for Nigeria held in Abuja last Thursday.
While delivering his paper at the event which attracted various stakeholders, Mr Yuguda noted that growing the nation’s gross domestic product (GDP) by 10 per cent and above should not be a herculean task given that most key factors of production like a large vibrant youthful population, arable land, abundant rainfall, good drainage and a large and growing pool of savings are available.
He stressed that one key factor dragging the country backwards was infrastructure, noting that solving this problem will accelerate domestic production and employment given the direct correlation between an increase in production and job creation.
“Infrastructure is the area where we have a major problem and I mean roads and rail transportation, power generation and distribution, health infrastructure, and the like.
“I believe the capital market can play a vital role in the financing of infrastructure and forums such as this one would do well to dwell on this important subject.
“Recall that at independence in 1960, the domestic savings pool was rather limited, yet the new nation was able to mobilise adequate funds from both domestic and foreign sources to fund the construction of highways, railways and large power projects.
“These same projects are in a dismal state today when the population has grown more than threefold. The commission is increasingly focusing its attention on this subject because of its impact on economic development and the quality of life of our citizens,” Mr Yuguda said.
The SEC boss described the theme of the workshop as very relevant, particularly for a developing economy like Nigeria.
According to him, with a GDP growth rate of -1.92 per cent in 2020 and an IMF growth forecast of only 2.5 per cent for 2021, Nigeria must do more to make its citizens happy, noting that there was a need to urgently address the country’s high unemployment rate which currently stands at over 30 per cent.
He said SEC, as the apex body responsible for regulating and developing the Nigerian capital market, undertakes specific activities to ensure investor protection, preserve the integrity of the market and improve its overall efficiency through registration, surveillance and enforcement activities.
The agency, he stated, also supports market development through investor education and the introduction of robust frameworks for new products and processes in collaboration with market stakeholders.
“The activities of the commission are necessary to ensure a well-regulated, effective, deep and liquid capital market which is crucial for promoting optimal capital allocation and intermediation to finance productive investment and generate much-needed employment in the Nigerian economy,” he said.
According to him, “Over the past decade, the Nigerian capital market has grown significantly with a major uptick in activities both in the equity and bond markets, including leaps in the growth and size of Collective Investment Schemes.
“The growth, however, slowed in the past 3 to 4 years owing to a recessionary trend experienced in the economy. This is because the Nigerian capital market closely mirrors the Nigerian economy and feels the full effect of the prevailing economic situation of the country.
“To further increase the capital market’s contribution to the growth and development of the Nigerian economy, the commission is currently implementing its 10-year Capital Market Master Plan (2015-2025).
“The commission is midway into the implementation and has embarked on a review of the Plan – in collaboration with the relevant market stakeholders – to reflect new realities and sharpen its focus,” Mr Yuguda disclosed.
He, therefore, assured that the agency will continue to work assiduously towards achieving its mission of developing and regulating a capital market that is dynamic, fair, transparent and efficient, to contribute to the nation’s economic development.
“I believe that if we all contribute our quota, we can achieve a Nigeria characterized by sustainable growth and increased job creation through efficient intermediation and allocation of resources in the financial market,” he added.
In his remarks, the President/Chairman of Council of CIS, Mr Olatunde Amolegbe, said Nigeria is blessed with immense human and natural resources, but expressed dismay that the country is listed among the poorest countries in the world in terms of per capita income.
“Just recently, in 2020, the country fell into its second economic recession in 5 years, although largely attributed to the COVID-19 pandemic which affected all countries in the world. We exited the recession in the fourth quarter of the same year 2020
“However, the critical point we have to note is that, historically, it has been observed that poorer countries need a much faster rate of GDP growth than the advanced economies of the world in to maintain standards of living as well as keep up with higher population growth rate,” he stated.
Mr Amolegbe said the theme for this year’s workshop has become imperative to drive the Nigerian economy as driving the economy will require financing of the right form, type, and mix.
He said despite government best efforts, the local financial market cannot be said to have been utilized optimally as of yet adding that the trend must be reviewed and reversed.
“Not long ago the capital market was used as the fulcrum of fundraising by all the different tiers of government. Such fund is always utilized for infrastructure development. Full subscription to the government’s revenue bond which is a form of borrowing is was widely used as the risk level is almost nil.
“Besides, governments’ participation in the market is a win-win affair for the government, the market, and investors. The time has come for all tiers of government to stage a comeback to the financial market to enhance capital raise for infrastructure development. Our seasoned facilitators shall surely do justice to this time-tested theme today.
“It is obvious that accelerated development of infrastructure will bring about job creation and employment opportunities with multiplier effects on the nation’s GDP. China’s GDP grows at an average of 10 per cent per year. This has lifted over 800 million people out of poverty in recent years,” he stated.
By Adedapo Adesanya
The Senate Committee on Banking, Insurance and Other Financial Institutions has called for stronger collaboration among financial sector regulators and other stakeholders to strengthen Nigeria’s financial system and support sustainable economic growth.
The committee made the call during an expanded stakeholders’ engagement in Lagos, attended by the leadership of the Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC), Asset Management Corporation of Nigeria (AMCON), National Insurance Commission (NAICOM) and Nigeria Export-Import Bank (NEXIM), among other industry stakeholders and financial experts.
Chairman of the committee, Mr Adetokunbo Abiru (Lagos East), who was represented by Mr Osita Izunaso (Imo West), said stronger legislative reforms and regulatory collaboration were necessary to reposition Nigeria’s financial architecture for long-term economic prosperity.
Mr Abiru said the financial sector remained critical to investment, job creation, business expansion and macroeconomic stability, stressing that its ability to mobilise savings, channel credit to productive sectors, facilitate investment and manage risks was fundamental to sustainable economic growth.
He said the current economic realities required closer collaboration between the legislature and financial regulators, noting that challenges confronting the sector were interconnected and could not be effectively addressed through isolated interventions.
The lawmaker identified inflationary pressures, global economic uncertainties, cybersecurity threats, low insurance penetration and the need to diversify Nigeria’s export base as some of the challenges requiring coordinated policy responses.
He said the engagement was aimed at generating practical solutions to strengthen the country’s financial architecture and support sustainable economic growth.
According to him, monetary policy, financial safety nets, banking institutions, the insurance industry and export finance were interdependent components of a stable financial system and must therefore be strengthened collectively.
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr Olusegun Ayo Omosehin, said the Nigeria Insurance Industry Reform Act (NIIRA) 2025 had contributed significantly to stabilising and repositioning the insurance sector.
Mr Omosehin disclosed that 43 insurance companies had successfully recapitalised, describing the development as a major milestone for the industry.
He commended Abiru and members of the committee for their role in advancing insurance sector reforms and urged the House of Representatives to expedite action on the relevant insurance reform bill to enable it to receive presidential assent and become operational.
Representatives of the CBN Governor and the Managing Directors of AMCON, NEXIM and NDIC also commended the Senate committee for its oversight and legislative support, saying its interventions had strengthened the agencies’ capacity to discharge their statutory mandates.
The engagement, held under the theme, Strengthening Financial System Architecture for Sustainable Economic Growth and Stability in Nigeria, also featured presentations by Professor Uche Uwaleke, President of Capital Market Academics of Nigeria (CMAN); Professor Biodun Adedipe, Chief Consultant, B. Adedipe Associates Limited; and Dr Tilewa Adebajo, Chief Executive Officer of CFG Advisory.
The experts presented policy recommendations on key issues affecting Nigeria’s financial system, with emphasis on financial stability, investment and sustainable economic growth.
Mr Abiru said the Senate would continue to engage financial regulators and other stakeholders to deepen financial inclusion, strengthen public confidence in financial institutions and improve regulatory effectiveness.
He said the broader objective was to position Nigeria’s financial system to compete more effectively in the global economy while remaining resilient and responsive to the country’s economic transformation agenda.
By Aduragbemi Omiyale
The first six months of 2026 were not too good for Caverton Offshore Support Group Plc, as it suffered an N8.7 billion loss compared with the N2.1 billion net profit it recorded in the same period of 2025.
This occurred as the company posted a 10.91 per cent decline in earnings between January and June 2026, according to its financial statements for the period ended June 30, 2026.
Analysis of the results showed that the revenue generated in the period under review stood at N14.7 billion versus the N16.5 billion printed in the corresponding period of last year.
Business Post observed that the revenue was negatively impacted by a decline in earnings from helicopter charter and helicopter/airplane contract.
Further analysis of the financial results indicated that operating profit went down by 22.34 per cent to N7.3 billion from N9.4 billion, with administrative expenses jumping to N7.9 billion from N4.7 billion.
But Caverton believes things will get better, noting that the clearest driver of the recovery is Caverton Marine.
Through its relationship with Stena Bulk, one of the world’s leading tanker operators, the organisation now participates in three Suezmax tankers trading a rare source of foreign-currency revenue for a Nigerian-listed company.
It noted that the relationship is being deepened through Unity Shipping Worldwide, a joint venture with the Nigerian National Petroleum Company (NNPC) Limited and Stena Bulk that pairs the state-owned oil firm’s national position and Stena Bulk’s fleet with Caverton’s indigenous operating platform
Closer to home, the firm’s OMIBUS platform, developed with Shanghai-based electric-propulsion OEM Explomar, is bringing battery-electric passenger ferries to Lagos waterways. A prototype is already in service, and Caverton holds a firm order from Lagos State for ten vessels, an early-mover position in clean inland-water transport that the group believes can be replicated across other states as the fleet enters service and ferry operations mature into steady, recurring revenue.
In aviation, the institution said the recovery is anchored on its partnership with NHV, a Belgium-based international helicopter operator, with the restructuring of charter operations targeted for the second half of 2026.
“The first half of the year tested us, but the direction of travel is now visible in the numbers.
“Quarter on quarter, we are working to build up our revenue to narrow losses. Our marine business units, from international tankers to electric ferries, are scaling.
“Meanwhile, our aviation relaunch is on track for the second half, and our cost base is tighter than it has been in years. There is distance still to travel, but Caverton is moving from stabilisation to recovery, and we intend to finish 2026 with that momentum intact,” the chief executive of Caverton, Mr Olabode Makanjuola, stated.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB) have issued new guidelines clarifying the taxation of virtual assets in Nigeria.
The guidelines provide an administrative framework for the taxation of virtual assets and specify the tax obligations of individuals and businesses operating in the sector.
According to a public notice issued by the two agencies, the framework covers registration, reporting and record-keeping requirements, valuation principles and the tax treatment of virtual asset transactions.
It applies to taxpayers, Virtual Asset Service Providers (VASPs), peer-to-peer (P2P) marketplace operators, tax practitioners and other persons engaged in virtual asset-related activities.
The NRS and JRB said the guidelines were developed in line with the provisions of the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025.
The two bodies said the release was aimed at providing clarity, certainty and consistency in the administration of Nigeria’s tax laws as the country’s virtual asset ecosystem continues to evolve.
The agencies added that the framework would promote voluntary compliance, enhance transparency and support the development of a fair and efficient tax system for digital asset transactions.
They urged all affected taxpayers and stakeholders to familiarise themselves with the guidelines and ensure compliance with the applicable tax obligations.
The guidelines are available on the official websites of the two agencies.
