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 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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