Economy
Naira Stability Buoys Nigeria’s Consumer Confidence Index in Q2—Report
By Dipo Olowookere
A new report released by South Africa-based Nielsen Africa has revealed Nigeria’s Consumer Confidence Index (CCI) for the second quarter of 2018 recorded a very healthy increase of nine points to 122, while Ghana’s CCI for the same quarter dropped 12 points to 108.
In an emailed statement to Business Post, Nielsen Africa noted that in terms of Nigeria’s performance, its Sub Saharan Africa chief, Mr Bryan Sun, submitted that, “The stability of forex rates and a steady Naira has led to stable retail prices of most manufactured goods and imported staples, resulting in a recovery in confidence levels in Nigeria. The improvements seen in the economic environment are reflected in the overall enhanced sentiment, with 83% of Nigerians describing the state of their personal finances over the next year as excellent or good.”
He stated further that this has resulted in a more positive outlook in terms of Nigerian consumers immediate-spending intentions, which has risen to 48% (up from 38% in Q1) who say now is a good or excellent time to purchase what they need or want.
This increasingly positive sentiment is also reflected in their job prospects, with 67% viewing them as excellent or good (up from 56% in Q1’18) and 29% as not so good or bad.
More cash, more spend
Looking at whether Nigerians have spare cash, a majority of 54% said yes, up nine points from the previous quarter, while 46% said no. Looking at what their spending priorities are once they do have spare cash, the highest number 86% would put it in savings followed by 82% on home improvements, 72% on new clothes and 67% would use their spare cash for both out of home entertainment and investing in shares and mutual funds.
When asked about the changes in their spending to save on household expenses, compared to this time last year, 80% of Nigerians agreed that they have changed their spending habits.
In terms of the actions they took to save money last year, the highest number (66%) said they spent less on at home entertainment, followed by 57% who took less holidays, 42% who spent less on new clothes and 39% who delayed the replacement of major household items.
Some of the major concerns driving this more cautionary mindset include 19% who think economy is their biggest concern over the next six months, whereas 12% consider food prices and 11% said work/ life balance is their biggest concern. When asked what their second biggest concern would be over the next six months, 19% said food prices, 13% said work/life balance and 12% mentioned job security.
Growing uncertainty in Ghana
From a stable confidence level in Q1’18, Ghana dropped 12 points this quarter to 108, the lowest since quarter 3, 2016.
Mr Sun comments; “Though consumer confidence in Ghana has declined in Q2’18, it still leans on the positive side, 100 being the neutral point on the index. The declining economic growth in Ghana, subdued performance in the non-oil and industrial sector, and poor agricultural performance has led to declining confidence levels this quarter.”
He adds that this uncertain sentiment is reflected by the six point drop in Ghanaians, down to 79%, who describe the state of their personal finances over the next year as excellent or good, and 17% (increase of 10% from Q1’18) who say that state of their personal finances is “not so good” or “bad”.
“It’s therefore no surprise that Ghanaian consumers’ immediate-spending intentions have declined, with only 35% of respondents (down from 48% in Q1’18) who say now is a good or excellent time to purchase what they need or want, versus the 61% who said it was not,” reports Mr Sun.
This declining sentiment is also reflected in Ghanaians’ job prospects, which has dropped 11 points to 54% who view them as excellent or good and a 10 point rise to 39% who think their job prospects are not so good or bad compared to the previous quarter.
Disposable income
Looking at whether Ghanaians have spare cash to spend, there was an even 50/50 split between those respondents who said yes and no. Looking at what their spending priorities are once they do have spare cash, the highest number 78% would spend it on home improvements, 77% would put it into savings and 61% would spend on new clothes.
When asked about the changes in their spending to save on household expenses, compared to this time last year, 61% of Ghanaians agreed that they have changed their spending habits. In terms of the actions they took to save money last year, the highest number (49%) said they spent less on at home entertainment, followed by 48% who took less holidays, 32% who delayed the replacement of major household items and 31% who spent less of new clothes.
The factors driving this more cautionary mindset are embodied in Ghanaians biggest and second biggest concerns over the next six months. The highest number of respondents (14%) said health is their biggest concern, followed by work/life balance (13%), and food prices and the economy (both at 12%).
When asked about their second biggest concern over the next six months, 16% of respondents said work/life balance, 12% said their kids’ education/welfare, and food prices and higher fuel prices both recorded 11%.
Elaborating on these results, Sun says: “Despite the decline in confidence levels, Ghana’s outlook is still positive. A strong domestic demand and favourable performance on oil, cocoa, and gold, coupled with ongoing investment in the country, gives hope for a brighter second half in 2018 for the country, resulting in a revival of consumer sentiments and spend”.
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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