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 Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has secured a $12 billion commitment from South Korea to establish a Skills Acquisition Centre in Abuja, as part of efforts to strengthen entrepreneurship and boost small businesses across Nigeria.
The chief executive of SMEDAN, Mr Charles Odii, disclosed this over the weekend during a road walk and sensitisation campaign at Utako Market in Abuja to commemorate the 2026 World MSME Day.
According to Mr Odii, the proposed facility will provide vocational and entrepreneurial training to young Nigerians and enhance the capacity of Micro, Small and Medium Enterprises (MSMEs).
He said the agency is awaiting the allocation of land by the Federal Capital Territory (FCT) Administration for the project.
“We need land in the FCT to build the Skills Acquisition Centre. If the FCT Administration is unable to provide one, we will use our office premises in Idu, Abuja, because we do not want Nigeria to miss this opportunity offered by the Korean Government to support skills and vocational training,” he said.
As part of activities marking the World MSME Day, Mr Odii also announced the launch of SMEDAN’s N500 million GROW Fund, a zero-interest financing intervention designed to support small businesses across the country.
He explained that the fund would be disbursed to members of registered cooperative societies and business associations to strengthen their enterprises.
According to him, beneficiaries are expected to utilise the funds strictly for business purposes, including expanding working capital, acquiring workspaces and purchasing equipment.
“The funding is meant to support and improve their businesses. It should be used for working capital, workspaces, tools and other productive business needs. Any use outside these objectives will not be encouraged,” he said.
Mr Odii further disclosed that entrepreneurs trained by SMEDAN in Abuja would receive vocational equipment, including washing machines, barbing kits, shoemaking tools and sewing machines, to enable them to become self-reliant.
“We have identified these tools as essential to the businesses of our trainees based on the skills programmes they have undergone,” he added.
The SMEDAN boss stressed that the agency’s interventions are driven by the critical role MSMEs play in Nigeria’s economy.
“Small businesses are the heartbeat of Nigeria’s economy. By providing infrastructure, skills and financing, we are creating an enabling environment for them to grow, thrive and contribute meaningfully to national development,” he said.
Odii also revealed that the National MSME Policy would be reviewed and relaunched in November 2026 to strengthen the sector and improve its contribution to economic growth.
He called on state governments to collaborate with SMEDAN in expanding skills acquisition programmes, creating jobs, reducing poverty and supporting the economic development agenda of President Bola Tinubu’s administration.
By Adedapo Adesanya
The Dangote Petroleum Refinery has purchased two cargoes of crude oil from the United Arab Emirates (UAE), marking its first-ever procurement of Middle Eastern crude as it diversifies its feedstock sources ahead of continuous expansion.
According to a report by S&P Global Commodity Insights, the two cargoes will be the first sourced by the 700,000-barrels-per-day refinery from any Middle Eastern supplier, signalling a shift from its traditional reliance on Nigerian, African, and United States crude grades.
The report said the purchases followed the resumption of oil exports from the Middle East after the United States and Iran reached an interim peace agreement that restored confidence in shipping through the Strait of Hormuz.
The refinery, designed primarily to process Nigeria’s light sweet crude, has increasingly diversified its crude slate as operations ramp up. The company sources crude from Brazil, Equatorial Guinea, Angola, Algeria, and the US, among others.
The refinery and the Nigerian National Petroleum Company (NNPC) Plc had agreed on the supply of between 13 and 15 cargoes of Nigerian crude monthly in Naira, but the volumes often fluctuate. In May, the state oil company allocated seven cargoes to the plant, up from five in previous months.
The chief executive of the Dangote Refinery, Mr David Bird, had previously disclosed that these constraints had compelled the company to seek additional crude sources outside Nigeria.
According to S&P Global, the refinery has been broadening the range of crude grades it processes as part of its ambition to operate as a fully merchant refinery. The report noted that in 2025, about 70 per cent of the refinery’s crude imports came from Nigeria, while 24 per cent originated from the United States.
The report added that the refinery’s expansion plans would further increase its crude requirements. Dangote plans to double the refinery’s processing capacity to 1.4 million barrels per day by the end of 2028, a level that would enable it to process about 80 per cent of Nigeria’s recent crude oil production in a single day.
Business Post understands that since NNPC cargoes are cheaper for the refinery because of lower shipping costs, importation of crude could translate to higher fuel prices, with Nigerians possibly buying as high as N1,300 – N1,400 at the pump.
By Adedapo Adesanya
The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern that Nigerian consumers have yet to benefit from lower prices despite the recent sharp decline in global crude oil prices.
Business Post reports that crude prices currently trade around $69 and $71 per barrel in the international market.
The commission stated on Sunday that following a market surveillance exercise, the review of gantry prices from local refiners, marketers, depot operators and retail outlets showed only token reductions, not aligned with the steep drop in international crude prices.
The chief executive of the agency, Mr Tunji Bello, said that though the FCCPC does not set petroleum prices in a deregulated market, it is mandated by the Federal Competition and Consumer Protection Act, 2018, to promote competition and protect consumers from unfair business practices.
“To be clear, the commission does not regulate or approve petroleum prices in a deregulated downstream market. Our responsibility under the Federal Competition and Consumer Protection Act, 2018, is to promote competitive markets, prevent anti-competitive conduct, and protect consumers from unfair, deceptive and exploitative business practices,” Mr Bello said.
“We are concerned that while dealers often respond swiftly by hiking pump prices whenever crude prices rise, it is curious that it is taking forever for consumers to benefit significantly when crude prices fall. Competitive markets must work fairly in both directions,” he added.
The organisation noted that crude prices fell to about $73 per barrel after a recent ceasefire between the United States and Iran and the reopening of the Strait of Hormuz, down from a peak near $120 per barrel in April.
During the April–May price spike, petrol prices rose to between N1,350 and N1,500 while diesel traded around N2,000. In February, PMS averaged between N800 and N900. Presently, average retail PMS nationwide is about N1,200, with some local refiners listing gantry prices between N1,025 and N1,075.
The FCCPC acknowledged that domestic fuel prices are affected by multiple commercial factors, including refining costs, foreign-exchange movements, logistics, financing and distribution expenses, but said competitive market dynamics should have passed more of the recent international cost declines to consumers.
“Market liberalisation does not diminish businesses’ obligations to compete fairly or consumers’ right to fair treatment,” Mr Bello added. “Where credible evidence indicates conduct that undermines competition, exploits consumers or otherwise contravenes the Federal Competition and Consumer Protection Act, the Commission will investigate and take appropriate enforcement action,” urging consumers to report suspected anti-competitive conduct, misleading pricing or other unfair market behaviour via its established complaint channels.
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