Economy
Local Savings Can Help Reflate Economy—Finance Minister
By Dipo Olowookere
Nigeria’s Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has said the country’s economy can be reflated if local savings is encouraged.
The global economy is currently on a life support because of the coronavirus pandemic, which forced many countries to lockdown their economies.
Nigeria was not an exception as it only eased the lockdown early June after almost all economic activities were shut down for nearly three months in order to curb the spread of COVID-19.
Already, the fiscal authorities are looking ahead of post-COVID-19 era. It is believed that the virus will disrupt the ways things have been done in the past.
While speaking at the inauguration of the National Savings Strategy Working Group in Abuja at the weekend, the Minister canvased the need to mobilise local savings, saying it was capable of reflating the economy post COVID-19.
She tasked members of the group to develop easy instruments that are safe to be able to attract ordinary Nigerians to key into the strategy.
The terms of reference of the group include; To study the National Savings Strategy Paper and advise the federal government on the feasibility of the proposals or with recommended changes.
The team is also expected to advise on ways and means of mobilizing and channelling corporate and individual savings to accelerate domestic capital formation to support entrepreneurs and enterprise development in the urgent task of diversifying the economy and the deepening of the capital market;
The group is further expected to draft a National Working Paper that outlines a detailed roadmap on the implementation of the National Savings Scheme to be submitted for approval by the Federal Executive Council.
“Let us not forget the average Nigerian that wants to save and does not have huge sums, we need to develop easy instruments that are safe to be able to attract them. look at creating retail savings scheme to allow these Nigerians to save quickly by being able to enter and exit without unnecessary rigours.
“We need to mobilise local savings to reflate the economy, increase productivity by creating new enterprises and ensure that existing ones also thrive,” she said.
Mrs Ahmed commended the acting Director General of the Securities and Exchange Commission (SEC), Ms Mary Uduk, her team and the members of the Capital Market Master Plan Implementation Council (CAMMIC) for their dedication and commitment to the implementation of the masterplan so far.
She expressed optimism that ongoing efforts to review the masterplan to align the assumptions and projections with current realities, would redefine the road map for stakeholder participation in the Nigerian capital market.
“My expectation when the review is concluded is that we would have a strategic document that provides a clear pathway that would enable the Nigeria’s capital market achieve the goal to be Africa’s deepest, most liquid and largest capital market contributing not only to Nigeria’s socio-economic development but also serve as a global financial hub offering opportunities to other parts of Africa,” she said.
In her remarks, Ms Uduk said the SEC launched a 10-year capital market masterplan in 2015, a market wide strategic blueprint that had the buy-in of all stakeholders, aimed at making the market deeper, vibrant and more effective.
Ms Uduk said the implementation of the initiatives in the 10-year plan will transform the Nigerian market, facilitate the diversification of the economy, encourage savings and create wealth.
“This will no doubt grow investors’ confidence, improve the depth and breadth of the market in terms of product offerings, engender market integrity, and contribute to the country’s economic growth.
“I am glad to report that we have taken up the initiatives outlined in the masterplan document in a systematic manner while engaging with the government, and other critical stakeholders to successfully implement key initiatives while driving the execution of others,” she stated.
Ms Uduk disclosed that the need to establish a National Savings Strategy was outlined in the masterplan as one of the key strategies to enhance capital formation by mobilizing domestic funds for investment to drive rapid economic growth.
She said it envisaged the deliberate provision of risk capital as venture capital and private equity that are naira based and more committed to the long-term prosperity of Nigeria, as well as create a buffer to the instability created by foreign investors.
“On July 16, 2016, CAMMIC set up a 7-man technical committee as a first step towards achieving that goal.
“The technical committee developed a 102-page, 7-chapter position paper which reviewed historical data and information on the Nigerian savings-investment culture, the Nigerian financial system, population and economy and the savings and investment strategies of select countries.
“The purpose of the position paper was to ascertain the need for a national savings strategy in Nigeria and make recommendations on an implementation strategy.
“The position paper forms the basis for the work expected to be carried out by the national working group being inaugurated today,” Ms Uduk added.
She, therefore, assured that SEC will provide the necessary support and every other assistance within its capacity to the national working group to ensure that their job is done in a timely and efficient manner.
Also speaking, Chairman of the team, Mr Fola Adeola, said savings is one of the fundamentals of highly developed economies and pledged the readiness of the group to help drive the Nigeria economy.
“This assignment is coming at a most difficult time as people are worried about the effect of COVID-19 on the economy, but if we get it right now, by the time we ease into good times, we will be better for it,” he added.
Recall that the capital market masterplan proposed the National Savings Strategy (NSS) as one of the key initiatives to drive capital formation and investment necessary to support entrepreneurs and enterprise development in the urgent task of diversifying the economy and deepening of the capital market.
To lift the equity markets, galvanize new start-ups and expand existing projects, there should be deliberate provision of Naira based risk capital.
In essence nurturing, growing and channelling domestic savings to fund the creation of new enterprises will result in rapid economic growth, diversification of the economy, acceleration in the rate of job creation and increasing the productivity and output of the Nigerian economy.
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
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