Economy
FG Expects Nigeria’s Economy to Bounce Back in Q1 2021
By Modupe Gbadeyanka
The federal government has expressed optimism that all things being equal, the economy of Nigeria should get back on its feet from the first quarter of next year.
Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said this when she received officials of the Federal Inland Revenue Service (FIRS) led by its Executive Chairman, Mr Mohammed Nami.
She said the various policies of the government are capable of injecting life into the economy, which contracted in the second quarter of 2020 by 6.1 per cent, according to the National Bureau of Statistics (NBS), which also said yesterday that inflation in August 2020 rose by 13.22 per cent.
Nigeria was faced with twin shocks this year and they came from a decline in the prices of crude oil and the global health pandemic of COVID-19, which forced a shutdown of the economy in Q2 2020.
The gross domestic product (GDP) is anticipated to decline again in the current third quarter despite the gradual reopening of economic activities in the country.
If the GDP records another negative growth in Q3 2020, Nigeria will officially fall into a recession like South Africa. It would be the second economic slip under the present administration of President Muhammadu Buhari.
Though the Buhari-led government wants to avoid this disaster, it is looking inevitable because of the effect of COVID-19 on the economy and Nigeria is not alone in this.
Speaking with her guests during the courtesy visit to her office in Abuja, the Finance Minister said, “We are expecting by the first quarter of 2021, we shall be okay.”
She charged the tax agency to do more in terms of generating revenue for the nation, reminding FIRS that there are other government obligations and debt servicing which requires revenue to fund “and we can see that the capacity to do more is there and we expect you to do more.”
“I also want your team working on the Finance Act to double their efforts. I want to remind you that we are an enabler for you. So, feel free and update us so that we can deal with your challenges,” she implored the team.
Mrs Ahmed commended the tax body for its revenue performance despite the decline in oil revenue, saying it has remained resolute as both Value Added Tax (VAT) and stamp duty have helped in boosting earnings.
According to her, the efforts at diversifying revenue sources have been a blessing, noting that the pandemic has not impacted much, especially in Nigeria because of the proactive measures taken by the government especially in the health sector.
In his remarks, the FIRS chief, Mr Mohammed Nami, thanked the Minister for her support for the agency, assuring her that they would do all their best “to provide food for FAAC (Federation Account Allocation Committee allocation) through revenue generation.”
Mr Nami said the FIRS has been contributing up to 70 per cent of the FAAC allocation in the last three to five months, thanking the Minister for keeping the economy buoyant, despite the challenges.
By Aduragbemi Omiyale
Nigeria slightly surpassed its quota set by the Organisation of the Petroleum Exporting Countries (OPEC) in July 2026.
In the month under review, the country produced about 1.57 million barrels of crude oil per day.
It was the third consecutive month Africa’s largest oil-producing nation was meeting its monthly quota, set to stabilise the price of the commodity on the global market by the oil cartel.
Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday showed that the 1.5 million barrels per day ceiling for Nigeria was surpassed last month.
The agency disclosed in a statement today that the country produced 1.505mbpd of crude oil and 0.17mbpd of condensate, bringing the combined daily production to 1.67mbpd.
In the month under review, the daily peak production of crude oil and condensate was 1.78mbpd, while the lowest daily production was 1.57mbpd.
Although Nigeria met its OPEC quota in the month of July, the statistics show that on a month-on-month basis, production fell by 4 per cent.
This was attributed to the decline in production due to operational challenges experienced at the Erha and Akpo fields, which impacted crude oil output during the period under review.
These disruptions constrained production volumes and contributed significantly to the overall reduction in national crude oil output.
Despite the challenges, production operations across most other producing assets remained relatively stable, with operators implementing measures aimed at maintaining production efficiency and minimising the impact of operational constraints, NUPRC stated.
By Aduragbemi Omiyale
The over 9 billion shares of Lasaco Assurance Plc issued to shareholders of the company via a rights issue have been listed on the Nigerian Exchange (NGX) Limited.
The equities were brought to Customs Street on Wednesday by the organisation, increasing its total issued and fully paid-up share capital.
Lasaco Assurance, which scaled the recapitalisation hurdle of the National Insurance Commission (NAICOM) in July 2026, raised fresh capital from the capital market to shore up its capital base.
The underwriting firm got about N18.5 billion from the rights issue, which involved the issuance of 9,236,321,546 ordinary shares at a unit price of N2.00.
The exercise was on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
Confirming the listing of the additional stocks of Lasaco Assurance today, the Head of Issuer Regulation Department of NGX RegCo, Mr Godstime Iwenekhai, announced in a circular that, “Trading licence holders are hereby notified that an additional 9,236,321,546 ordinary shares of 50 Kobo each of Lasaco Assurance Plc were today, Wednesday, August 12, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 9,236,321,546 ordinary shares of 50 Kobo each at N2.00 per share on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
“With the listing of the additional 9,236,321,546 ordinary shares, the total issued and fully paid-up share capital of Lasaco Assurance Plc has now increased from 11,083,585,855 to 20,319,907,401 ordinary shares of 50 Kobo each.”
By Adedapo Adesanya
The Nigerian Insurers Association (NIA) has said the successful recapitalisation of the insurance industry will strengthen the sector’s ability to support financial stability and economic growth.
NIA Chairman, Mrs Ebelechukwu Nwachukwu, said a well-capitalised insurance industry would be better positioned to meet its obligations promptly, underwrite complex and large-scale risks and serve as a dependable pillar of the Nigerian economy.
She made the remarks while commending the National Insurance Commission (NAICOM) for its structured implementation of the new minimum capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Mrs Nwachukwu said NAICOM’s clear guidelines, systematic verification process, defined timelines and rigorous supervision had provided operators with a credible framework for navigating the recapitalisation exercise.
She described the outcome as a major milestone for the industry and congratulated the 43 insurance and reinsurance companies that have successfully met the prescribed minimum capital requirements.
According to her, the exercise represents “a major win not just for regulators and operators, but for policyholders, investors and the wider Nigerian economy.”
Mrs Nwachukwu said the association would continue to work with NAICOM and other stakeholders to consolidate the gains of the exercise, with emphasis on sustainable industry growth, stronger market conduct and improved consumer confidence.
The official also expressed solidarity with the eight companies still undergoing final verification and regulatory review, urging them to remain confident as NAICOM completes the process within the 14-day review period.
The NIA chairman assured policyholders and the wider business community that the insurance industry would emerge from the recapitalisation exercise stronger, more resilient and better positioned to contribute to Nigeria’s economic development.
