Economy
Nigeria Must Adopt Dual Circulation Economy to Prosper—Sekibo
By Aduragbemi Omiyale
The Managing Director of Heritage Bank Plc, Mr Ifie Sekibo, has advised the federal government to adopt a dual circulation economic strategy like China to attain prosperity.
A dual circulation economy involves growing exports and expanding domestic demands from locally produced items by building higher consumption almost at the same time.
For Mr Sekibo, this strategy will work well in Nigeria because the country has the population to soak the pressure.
Speaking at an event organised by The Men’s League of Christ Church Port Harcourt, Rivers State, he also stressed that the government must address security challenges and leadership issues as they remain very critical for the success of the economic model.
At the programme themed What do Nigerians Want,? Mr Sekibo said, “On a higher note, I think one of the things that we need to achieve as a country is the issue of functional and value-adding identity management, which is still far away from us, although, some people know that we have BVN, NIMC and a few other identity capture systems they have not been as functional and value-adding, like the social security number that most people in advanced economies carry.”
The Heritage Bank chief, who was represented by the Divisional Head of Strategy and Business Solutions of the bank, Mr Segun Akanji, further explained that to achieve a prosperous economy, Nigeria needs to find ways and means by policies to build a dual circulation economy which thrives on three pillars.
According to him, the country needs to focus on building a dual circulation economy where it can expand domestic production and demand by making sure that the masses are employed.
“We need to make our people productive and stop putting subsidies in unproductive zones. When you give subsidies to people with inadequate or no income, they really cannot add value to the economy, and money has a way of flowing away due to the import of consumables from other countries and because of this, a larger portion of every consumption or cash given as subsidy gets out of the country,” Mr Sekibo stated while delivering a paper titled The Economy Nigeria Needs to Break Forth.
The bank’s helmsman further explained that to expand the domestic production, the government must give the private sector support to drive employment creation, technology, which is riding on innovation and manufacturing must be in place and, the population which is an added advantage must be well educated.
He highlighted the need to examine how the country could add value to primary production for global export, emphasizing on reduction of over-dependence on foreign markets but rather increasing local production for export, whilst also increasing demand for local products.
Mr Sekibo further affirmed that if states could function as proper federating units and take the lead of the competitive comparative advantages therein, wealth creation would be achieved that would bring about the desired changes.
Also speaking at the event, the former Governor of Anambra State and presidential candidate of the Labour Party (LP) in the 2023 general elections, Mr Peter Obi, agreed with Mr Sekibo that the country must address the issues of insecurity and leadership deficiency in order to prosper.
He lamented the huge indebtedness of the country, which he blamed on unproductivity due to the inimical situation of a high unemployment rate resulting in over 80 million Nigerians being jobless.
According to him, cumulative failure of the government over the years plunged Nigeria into insecurity, noting that other factors include the failure to migrate from sharing formula to production formula and lack of will to transform the power sector and the need to focus and support the micro, small and medium enterprises (MSMEs).
On his part, a clergyman, Pastor Ituah Ighodalo, harped on the need for leadership change, arguing that what the country needs now are leaders who have a vision and are ready to sacrifice for the common man, stating, “things must be done differently”.
Also speaking, Prof. Oyelowo Oyewo submitted that the police, power provision and railway must be decentralised as this will make states to be less dependence on the centre.
He maintained that regions are closer to the people and will boost security, the economy and the sense of belonging by the populace. He also identified data and planning as key factors in ensuring that programmes are tailored towards the people.
By Adedapo Adesanya
United Capital Plc has acquired a 5 per cent equity stake in the Nigerian Exchange (NGX) Group Plc for an undisclosed fee, deepening its involvement in Nigeria’s capital market.
The pan-African investment banking and financial services group announced this in a statement on Monday, noting that the transaction had been successfully completed and describing the investment as a key milestone in its long-term growth strategy.
NGX Plc, which serves as the holding company for Nigeria’s premier securities exchange and related market infrastructure businesses, plays a central role in Nigeria’s capital formation, market development, and economic growth.
United Capital said the acquisition reflects its confidence in the future of Nigeria’s capital markets and positions the Group to contribute more actively to the development of the nation’s financial system.
Commenting on the development, the chief executive of United Capital, Mr Peter Ashade, said the investment aligns with the company’s vision of creating sustainable value while supporting institutions critical to economic development.
“This acquisition reflects our confidence in Nigeria’s capital markets and our responsibility to contribute to their growth actively,” Mr Ashade said.
“We have always said that United Capital is not just a participant in Nigeria’s capital markets; we are also builders. This strategic investment in NGX Plc is exactly that: we are building for impact. It is our vote of confidence in the leadership and strategic direction of the NGX and where the capital market is headed,” he added.
According to him, the acquisition underscores the firm’s commitment to supporting the continued evolution of Nigeria’s capital market infrastructure while delivering long-term value to shareholders.
United Capital, which operates across 12 countries in West, East and Central Africa, provides a range of services spanning investment banking, asset management, securities trading and wealth management.
The company said the stake in NGX Plc would enable it to leverage its regional footprint and market expertise to support the Exchange’s next phase of growth and transformation.
The acquisition comes amid a series of strategic milestones for the financial services group, including the successful recapitalisation of all its subsidiaries ahead of regulatory deadlines and the recent acquisition of operational licences in Ethiopia and Rwanda.
By Adedapo Adesanya
Nigerians have kicked against suggestions by the International Monetary Fund (IMF) to the federal government to consider increasing the Value Added Tax (VAT) rate and introducing excise duties on telecommunications services as part of efforts to boost revenue generation and create fiscal space for development spending.
IMF, in its 2026 Article IV Consultation Report on Nigeria, warned that despite recent tax reforms, additional revenue measures would likely be required over the medium term to support critical social and infrastructure spending.
According to the IMF, Nigeria’s revenue mobilisation efforts must go beyond administrative improvements to address the country’s persistently low revenue-to-GDP ratio and rising expenditure pressures.
The Fund stated that, “Further tax policy changes will likely be needed, such as increasing the VAT rate, extending VAT to fuel products, rationalising tax expenditures in particular VAT exemptions on extractive industries and some customs duties, and introducing telecom excises, to complement administrative gains.”
It noted that while the recently enacted tax reforms are expected to improve revenue collection over time, some of the measures are revenue-reducing in the short term and may take time to yield significant gains.
On X (formerly Twitter), user @RealCeecee wrote – “You want to impose more suffering on people living on empty pockets. Where exactly does all this revenue go to? IMF would never give this kind of advice to any country that has good leaders, when the masses are already going through extreme suffering.”
“To be honest Nigerian need to stand its feet against the IMF, no be anything them go detect for us. The revenue they are talking about has anyone seen where it goes, let alone imposing another way to generate that will actually cause discomfort for Nigerians,” another handle, @KingMasy, wrote.
The IMF had stressed that continued revenue mobilisation is essential if the government is to sustain higher capital spending and expand social intervention programmes aimed at cushioning the impact of economic reforms on vulnerable Nigerians.
“Over the medium term, continued revenue mobilisation is essential to creating fiscal space for development and social spending,” the Fund said, adding that there was limited room to maintain the projected increase in capital expenditure without additional revenue sources.
The Bretton Woods institution, however, cautioned that the timing of any new tax measures should take into account the worsening poverty and food insecurity situation in the country.
It emphasised that any tax increases should be accompanied by a fully funded and effective cash transfer programme to shield vulnerable households from additional economic hardship.
“The timing of reforms must consider the poverty and food insecurity situation and ensure that the cash transfer system is in place and funded,” the report stated.
The IMF’s recommendation comes as Nigeria continues to grapple with weak revenue generation despite recent reforms, including the removal of fuel subsidies and efforts to improve tax administration.
The Fund projected that poverty and food insecurity could worsen amid higher global fuel and food prices, noting that poverty had already reached 63 per cent of the population while about 27 million Nigerians faced food insecurity in 2025.
It also reiterated its call for a neutral fiscal stance in 2026, warning that spending pressures linked to poverty, food insecurity and preparations for the 2027 general elections could widen fiscal deficits and increase financing needs if not carefully managed.
By Adedapo Adesanya
The National Bureau of Statistics (NBS) has revealed that Nigeria’s headline inflation rate in May 2026 rose to 15.93 per cent from 15.69 per cent in April, as the pressure from the Iran war continued to affect the global economy.
In the report on Monday, the statistical office showed that the headline inflation rate for May on a month-on-month basis was 1.75 per cent. 0.39 per cent lower than the 2.13 per cent recorded in April 2026.
On an annualised basis, the print was down from 26.06 per cent in the same month of the preceding year (May 2025). This was due to the rebasing of the calculation year from 2009 to 2024.
The rise in prices, which stemmed from the continued conflict in the Middle East, continued to stoke food prices and energy costs, which account for a huge chunk of average spending.
According to the NBS, “this can be attributed to the rate of change in the average prices of the following products: Millet whole grain, yam flour, ginger (Fresh), beef, garri, tam tuber, pepper (Fresh), cray fish, cassava tuber, Beans, Irish Potatoes, tomatoes (fresh), wheat grain (Sold loose), soya beans, guinea corn, plantain, carrots (Fresh) etc.”
The Food inflation rate in May 2026 on a month-on-month basis was 2.98 per cent, down by 0.65 percentage points from April 2026 (3.63 per cent), while on a year-on-year basis, it was 16.96 per cent and stood at 24.55 per cent in the same month of the preceding year (May 2025).
In its recent assessment of Nigeria, the International Monetary Fund (IMF) acknowledged the country’s ongoing macroeconomic reform efforts while warning that rising inflation, deepening poverty, and external shocks linked to geopolitical tensions could undermine recent gains.
The IMF projected a reversal in the disinflation trend, with headline inflation rising from 15.1 per cent in February 2026 to 15.4 per cent in March, driven largely by food price increases. It projected year-end inflation of 17.0 per cent, citing global commodity shocks and domestic pass-through effects.
The lender also recommended that the Central Bank of Nigeria maintain a cautious, data-dependent monetary policy stance following its recent steadying of interest rates at 26.5 per cent.
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