Economy
Nigeria’s Current Sources of FX Inflows Unreliable—Emefiele
By Aduragbemi Omiyale
Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has expressed worry over the sources of foreign exchange (FX) inflows in Nigeria, describing them as unreliable as they are prone to external forces, which hurt the nation’s economy.
Nigeria, the largest economy in Africa, has struggled to strengthen its legal tender, the Naira, in the forex market due to a shortage of foreign currencies to meet the demand of end-users.
Despite the prices of crude oil rising on the global market, the country’s external reserves have continued to deplete because the apex bank dips its hands into the purse to defend the local currency in the FX market.
Nigeria relies on crude oil sales to earn forex but it has not been able to take advantage of the recent rise in the price of the commodity as well as the war in Ukraine instigated by Russia.
A few months ago, the CBN, in an effort to change the narrative, launched an initiative called CBN RT 200 aimed at generating $200 billion from non-oil exports in the coming years.
The central bank was in Lagos on Thursday for a Non-Oil Export Summit and the CBN chief stated that country’s foreign exchange challenges were beyond the powers of monetary policy, noting that efforts are being made to manage both the demand and supply side to meet forex obligations.
Attributing the current challenges of the Nigerian economy to a combination of local and global factors such as the COVID-19 pandemic, delays in global logistic value chains and local security challenges, he expressed concern that most of Nigeria’s current sources of FX inflows were unreliable and prone to fluctuations of global economic developments.
Mr Emefiele noted that the global economic challenges had impacted food production among others and had exerted undue pressure on the economy, thereby exposing the fragility of the Nigerian economy and making macroeconomic management very difficult.
“These problems call for urgent design and steadfast implementation of other supportive, structural, and complementary policies that are broad-based, coordinated and focused on complementing the work of the monetary authority,” he noted.
Reiterating the need for a more diversified economy, Mr Emefiele said Nigeria could be great without crude oil, the global price of which the country had no control over.
He, therefore, urged all stakeholders to regroup by working together to reposition Nigeria on a growth trajectory by taking diversification of the economy much more seriously, emphasising that Nigeria had very little choice left but to look inwards and find innovative solutions to its challenges.
In order to avoid sudden adjustments to Nigeria’s economic life, he said there was the need to focus on strategies that can help the country earn more stable and sustainable inflows of foreign exchange.
“We would need to follow the best practices of other countries and ensure that we protect ourselves a little bit from factors that are beyond our immediate control. This is the time to start working in synergy for the good of our nation.
“This is the time for us as a Banking Community to do more and support exporters who have been flying the flag of Nigeria in the international market space,” Mr Emefiele declared.
Although he admitted the enormity of the ultimate goal of $200 billion in non-oil exports over the medium term, Mr Emefiele expressed confidence that the goal was attainable, given the fact that many countries less endowed than Nigeria had achieved much in the field of agriculture.
To underscore his point, he said within a short period of implementing the Non-Oil FX Rebate Scheme, the country had recorded a significant increase in non-oil export repatriation, adding that eligible exporters had been paid over N3.5 billion in rebates.
In his remarks, the Governor of Lagos State, Mr Babajide Sanwo-Olu, lauded the CBN and other actors in the banking sector for supporting the efforts by the Federal Government and states, especially Lagos, to boost growth in the economy.
Mr Sanwo-Olu expressed optimism that the Lekki Deep Seaport, which he described as the largest in West Africa, will be handed over for use at the end of 2022, thereby providing enormous opportunities to exporters to ply their trade and by extension improve the export earnings of the country.
As part of efforts to decongest the Apapa and Tin Can Island Ports in Lagos, the Governor said the state government was awaiting approval for work to begin on the Badagry Ports in the Western part of Lagos.
For businesses operating across borders, payments are no longer simply the final step in a transaction. The way money moves can influence where a company sells, how quickly it can enter a new market, and how easily customers can complete a purchase. As digital payment methods become more diverse, businesses are adjusting not only their checkout options but also the way payment processes fit into wider operations.
This shift is particularly visible in international commerce. A company can now serve customers in multiple markets without relying on a single payment method or a traditional physical presence in each location. Digital payments have become part of the infrastructure that supports increasingly distributed business models.
A More Connected Payment Environment
Global commerce has created a more complicated payment environment. Customers in different countries may have very different expectations about how a purchase should be paid for. Some markets rely heavily on cards, while others have seen rapid adoption of digital wallets, bank-based payment methods, or other local alternatives.
For businesses, this variety creates both opportunities and practical challenges. Offering payment options that customers recognize can reduce friction during a transaction, while supporting several markets may require businesses to work with different payment technologies and providers.
Digital payments have therefore become closely connected to market expansion. A company entering a new country does not only need to consider demand for its products or services. It also needs to understand how customers in that market prefer to pay and whether its existing payment setup can accommodate those expectations.
More Choices for Businesses and Customers
The growth of digital payments has expanded the range of choices available on both sides of a transaction.
Consumers can increasingly choose between cards, digital wallets, bank transfers, mobile payment methods and other forms of electronic payment. Businesses, meanwhile, can select from different technologies and payment providers depending on their markets and operational requirements.
This development has changed the role of payments in the customer experience. Payment is no longer necessarily treated as an isolated technical process that begins only after a purchasing decision has been made. The available options can influence whether a customer completes a transaction in the first place.
For international businesses, flexibility can be particularly important. A payment method that is familiar and convenient in one market may be less relevant in another. Supporting a broader selection can allow businesses to adapt their payment experience without changing the underlying product or service.
The Rise of Alternative Payment Models
Traditional card and bank-based payments remain important, but the digital payments landscape has expanded beyond these established methods. Digital wallets, account-to-account payments, mobile solutions and cryptocurrency have all contributed to a broader definition of what a digital transaction can look like.
Cryptocurrency remains a smaller part of the overall payments landscape, but it has created another category of payment technology for businesses to consider. Specialized solutions such as BitHide can provide businesses with tools for handling crypto payments as part of their broader payment operations.
The significance of this development is not necessarily that every business will adopt cryptocurrency. Rather, it demonstrates how the payment landscape continues to diversify. Businesses operating internationally can increasingly choose from different models instead of relying on a single approach across every market.
Payments Are Becoming Part of Business Operations
As payment systems become more digital, their role increasingly extends beyond accepting money from customers. Payment processes can interact with accounting, order management, customer records and other parts of a company’s digital operations.
This is particularly relevant for businesses with large transaction volumes or customers in multiple countries. Manual payment processes can become difficult to manage as the number of transactions, currencies and payment methods increases. Digital systems can help businesses organize these processes within a wider operational framework.
The result is a gradual shift in how companies think about payments. Instead of treating payment processing as a separate function, businesses are increasingly considering it alongside other elements of their digital infrastructure.
This does not mean that every company needs a complex payment setup. The appropriate approach depends on the business model, target markets, transaction volumes and types of customers involved. For some companies, a small number of established payment methods may be sufficient. Others may need a more flexible arrangement because of the markets they serve.
Adapting to Different Markets
One of the more important changes brought by digital payments is the ability to adapt payment experiences to different markets.
International businesses often face differences in consumer behavior, financial infrastructure and preferred payment methods. A payment strategy that works well domestically may therefore require adjustments when a company expands internationally.
Digital payment technology can make these adjustments more practical, but it does not remove the need for local market knowledge. Businesses still need to understand customer preferences, applicable requirements and the practical costs associated with different payment methods.
This makes payment strategy part of international expansion rather than an issue that can be addressed only after a new market has been entered.
What Comes Next for Global Businesses
The digital payments market is likely to continue becoming more diverse as businesses and customers adopt new ways of moving money. The important change may not be the replacement of one payment method by another, but the growing ability to combine different methods according to the needs of a particular business or market.
For global companies, this creates an emphasis on adaptability. Payment systems need to support the way a business operates rather than becoming a limitation on where and how it can sell.
Digital payments are consequently becoming more than a convenient alternative to cash or traditional payment processes. They are increasingly connected to international commerce, customer experience and day-to-day business operations. As payment options continue to develop, companies that can adapt their payment strategies to different markets will be better positioned to operate in an increasingly digital global economy.
By Adedapo Adesanya
The Dangote Refinery accepted 52.6 million barrels of crude oil and condensate from producers in the second quarter of 2026, representing 78 per cent of the 68.1 million barrels offered to the refinery, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The refinery, which required about 63 million barrels during the three-month period, received the largest share of crude volumes offered to domestic refineries, accounting for about 98 per cent of total volumes offered by producers.
The figures were contained in the commission’s latest data on the implementation of the Domestic Crude Supply Obligation (DCSO), which showed that producers supplied 53.7 million barrels to local refineries between April and June.
The Q2 performance translated to a 97.4 per cent compliance rate with the DCSO, which is enforced by the NUPRC under Section 109 of the Petroleum Industry Act (PIA) 2021.
The agency said the DCSO framework operates on a “willing buyer, willing seller” basis, with monthly consultations between producers and refiners used to determine crude allocation volumes.
Despite producers offering the Dangote Refinery about 5.1 million barrels more than its quarterly requirement, the plant accepted 52.6 million barrels, leaving about 15.5 million barrels of the offered volume unaccepted.
NUPRC said the difference highlighted the need for continued coordination between producers and domestic refiners, particularly on commercial terms and logistics.
The commission attributed the improved DCSO compliance in the second quarter to increased local crude production and the signing of long-term crude supply agreements backed by bankable Sales and Purchase Agreements (SPAs).
According to NUPRC, these agreements have reduced transactional difficulties and improved the predictability of crude supply, enabling domestic refineries to plan their offtake more effectively.
Monthly data showed mixed performance during the quarter. In April, producers offered 19.31 million barrels against an allocation of 18.13 million barrels, while refineries received 20.88 million barrels, representing a 114.9 per cent delivery rate.
In May, producers offered 23.19 million barrels against an allocation of 18.78 million barrels, but actual deliveries fell to 14.23 million barrels, resulting in a 75.8 per cent compliance rate.
In June, producers offered 26.84 million barrels against an allocation of 18.17 million barrels, while refineries received 18.61 million barrels, representing a 102.4 per cent performance rate.
The NUPRC said it would continue to enforce the DCSO under the PIA while leveraging increased domestic production and commercial supply arrangements to support Nigeria’s energy sufficiency objectives.
By Modupe Gbadeyanka
The Group Chief Innovation and Technology at Meristem, Mr Stanley Jacob, submitted that the core financial challenge facing Nigeria and Africa is not funding, but a lack of financial architecture and project readiness to deploy existing capital safely and productively.
At a forum organised by The Alternative Bank (AltBank) last Thursday in Lagos, Mr Jacob tasked policymakers to think out of the box, noting that the continent holds vast domestic capital pools.
At the event themed Beyond Interest, he also disclosed that the convergence of the Pan-African Payment and Settlement System (PAPSS) with the tokenisation of real-world assets could hand Nigeria a first-mover advantage in continental capital markets.
This sentiment was echoed by the Executive Director of Tugrande Alliance Limited, Ajibola Tobi-Osho, who pointed out that while Nigeria has moved from crisis management to macroeconomic stability, the binding constraint has shifted from inflation to capital allocation, with banks parking record liquidity at the central bank rather than lending to the businesses that drive jobs and growth.
Last Thursday’s programme was convened to advance the case for non-interest finance as a practical route to mobilising patient capital into Nigeria’s productive economy, as well as press investors and policymakers to judge every allocation by both the returns it earns and the capacity it builds.
The chairman of The Alternative Bank, Mr Muhtar Bakare, stated that Nigeria’s constraint is less a shortage of capital than a shortage of the trust that allows capital to do patient work.
“What we lack is not effort. We lack capital that stays long enough to turn effort into capacity, capacity into durable jobs and durable jobs into stability. That is why the distinction between extractive and productive capital matters,” he said.
Also speaking, the Governor of Lagos State, Mr Babajide Sanwo-Olu, averred that the government is not a competitor to private investment but an enabler of it.
“The future of finance is not only about the price of capital; it is increasingly about the quality of the economic activity that capital enables. Lagos is not only open for business; Lagos is prepared to do business,” Mr Sanwo-Olu, represented by the Commissioner for Finance, Mr Abayomi Oluyomi, stated.
In his remarks, former Governor of Lagos State and former Minister of Works and Housing, Mr Babatunde Fashola, argued that capital anchored to real, productive assets and to the public good delivers more durable value than money chased for short-term yield, and urged investors and institutions to weigh the long-term social returns of where they place their funds.
Delivering his brief on The Business Case for Ethical Capital, a member of Sterling Financial Holdings Company Plc board, Mr Abubakar Suleiman, traced The Alternative Bank’s journey from a modest non-interest window opened by Sterling Bank in 2014 to an institution he said now holds total assets approaching ₦500 billion and serves nearly a million customers.
“The Alternative Bank has shown that non-interest banking can grow, win customers, and generate profit. The business case for ethical capital already exists. Our task is to apply it with discipline,” he stated.
He pointed to WasteBanc, AltBank’s recycling initiative with the Lagos Waste Management Authority, and to Nigeria’s sovereign Sukuk programme as evidence that values-aligned finance can hold to commercial standards while connecting capital to identifiable, productive assets.
