Economy
Nigeria’s Economy Strong Enough to Absorb Oil Market Shocks—Edun
By Adedapo Adesanya
The federal government has begun assessing the potential economic implications of the escalating geopolitical tensions in the Middle East and adjusting policies to shield Nigeria from possible disruptions.
This was disclosed by the Minister of Finance, Mr Wale Edun, as the Economic Management Team (EMT) convened to evaluate the risks posed by the US-Israel-Iran standoff to global energy routes, such as the Strait of Hormuz.
He said Nigeria’s robust 4.07 per cent real GDP growth in Q4 2025 positions the country to weather looming oil market shocks from Iran tensions.
Mr Edun, who chairs the EMT, in a statement issued on Tuesday by the Assistant Director for Information and Public Relations in the ministry, Uloma Amadi, said the government was closely monitoring developments and remained committed to safeguarding Nigeria’s economic stability.
The EMT moved to review the potential impact of the unfolding crisis on the Nigerian economy.
Mr Edun also chaired a Naira-for-Crude policy coordination meeting to evaluate developments in the global energy market and their possible domestic implications.
The government noted that the situation remained fluid, with global markets already showing signs of uncertainty amid concerns about potential disruptions to critical energy supply routes, particularly the Strait of Hormuz.
Such disruptions, it said, could lead to volatility in crude oil prices and financial markets worldwide.
Given Nigeria’s integration into global commodity and financial markets, the government identified three major channels through which the crisis could affect the domestic economy.
These include crude oil and gas prices, capital flows and financial market conditions, as well as global logistics and supply costs.
The statement noted that volatility in global energy markets was already pushing up the prices of key commodities, with possible implications for domestic fuel, diesel, cooking gas, and fertiliser costs.
It added that heightened geopolitical risks could also lead to a shift by global investors toward safe-haven assets, potentially affecting capital inflows into emerging markets, including Nigeria.
In addition, disruptions to major shipping and energy supply routes could increase international freight and logistics costs, thereby exerting upward pressure on domestic prices.
The Minister of Finance noted that, beyond these immediate effects, sustained instability in the region could lead to higher prices for goods and services, further intensifying inflationary pressures and the cost of living.
During the EMT meeting, ministers provided sector-specific updates on the evolving situation, with discussions focusing on the likely scale of impact on Nigeria depending on the duration and intensity of the conflict.
Particular attention was placed on how developments in the global oil market could influence Nigeria’s fiscal outlook and external reserves.
The government said the Economic Management Team is closely monitoring key macroeconomic indicators, including global crude oil prices, exchange rate developments, and their potential impact on domestic prices.
It is also tracking capital flows, financial market conditions and broader implications for Nigeria’s fiscal position.
Despite global uncertainty, the Federal Government said Nigeria is entering the period from a position of strengthened economic fundamentals.
It cited recent economic data showing that the country recorded a real Gross Domestic Product growth of 4.07 per cent in the fourth quarter of 2025, one of the strongest quarterly performances in more than a decade.
According to the statement, the growth reflects the impact of ongoing economic reforms and improved macroeconomic coordination.
The government said it remains committed to protecting these gains and ensuring that recent progress in economic stabilisation and revenue mobilisation is not undermined by external shocks.
To achieve this, the Economic Management Team is maintaining close coordination across fiscal, monetary and energy policy institutions.
Policy options are also being kept under continuous review to mitigate potential volatility and protect households and businesses from the possible spillover effects of the global crisis.
Mr Edun emphasised that careful policy calibration would remain central to the government’s response to evolving global developments.
By Adedapo Adesanya
The Lagos State Government has secured about $22 million in Foreign Direct Investment (FDI) commitments to expand digital infrastructure across the state, in a move aimed at strengthening its position as Nigeria’s leading technology and innovation hub.
The investment was facilitated through the Lagos State Infrastructure Maintenance and Regulatory Agency (LASIMRA) and is expected to accelerate the deployment of fibre optic networks, improve broadband penetration and support smart-city development initiatives.
Speaking recently during the 2026 Ministerial Press Briefing held in Alausa, Ikeja, the Special Adviser to the Governor on Infrastructure, Mr Olufemi Daramola, disclosed that LASIMRA attracted foreign direct investment commitments worth about $22 million targeted at the rollout of high-capacity fibre optic infrastructure across Lagos State.
He said the development aligns with the government’s broader strategy to expand the state’s digital economy and enhance technology-driven growth in Africa’s most populous commercial centre.
Mr Daramola explained that the agency also facilitated additional investments for the deployment of about 30,000 kilometres of 28-way fibre duct infrastructure along strategic corridors across the state, building on the existing 3,000 kilometres of fibre already installed.
He noted that the expansion would significantly improve internet connectivity, boost broadband access and strengthen operations within Lagos’ rapidly growing digital ecosystem.
Beyond foreign investment inflows, he revealed that LASIMRA recorded a 300 per cent increase in revenue generation during the review period, driven by improved permit processing systems, enhanced regulatory compliance and the introduction of digital workflow platforms.
He further disclosed that the agency is advancing the Automated Telecom Infrastructure Registration System (TIRS), a digital platform designed to automate infrastructure registration, improve compliance monitoring and accelerate permit approvals for telecom operators.
“As part of its smart-city agenda, Lagos has deployed Geographic Information System (GIS) technology for mapping and monitoring fibre routes, telecommunications masts and towers, while also advancing the rollout of 5G-enabled smart poles across the state,” he said.
Mr Daramola added that the ongoing initiatives are aimed at building a resilient and future-ready digital infrastructure ecosystem capable of attracting further investments, fostering innovation and supporting long-term economic growth.
This marks the latest government move in tech following its plans to expand the city’s data centre capacity to over 250 megawatts (MW) by 2030 as part of efforts to strengthen the digital infrastructure ecosystem.
By Aduragbemi Omiyale
On Monday, June 1, 2026, the Nigerian capital market achieved a historic milestone with the successful transition to a T+1 settlement cycle.
With this feat, it becomes the first market in Africa to implement the shortened settlement framework designed to enhance efficiency, reduce risk, and improve global competitiveness.
This is part of efforts to align the ecosystem with global best practices, where shorter settlement cycles are increasingly being adopted to improve post-trade efficiency, reduce counterparty risk, and strengthen investor confidence, reaffirming regulators’ commitment to continued modernisation of market systems and processes.
The transition follows six months of coordinated industry-wide preparations involving regulators, exchanges, depositories, custodians, registrars, and other market participants, positioning Nigeria among global markets adopting shorter settlement cycles to improve post-trade efficiency and market resilience
At a ceremony to mark this achievement through a symbolic closing gong ceremony yesterday, the Director-General of the Securities and Exchange Commission (SEC), Mr Emomotimi Agama, described the development as a defining moment in the market’s evolution.
“The era of T+1 has begun. In just six months, Nigeria has successfully progressed from T+2 to T+1 settlement, joining a growing group of markets embracing faster and more efficient settlement cycles.
“This achievement signals that Nigeria is prepared to undertake the structural reforms required to compete for global capital,” Mr Agama enthused.
In his goodwill message, the chairman of the Nigerian Exchange (NGX) Group Plc, Mr Umaru Kwairanga, described the transition as a key step in the ongoing transformation of Nigeria’s capital market.
He said the development underscores the shared commitment of stakeholders to strengthening market institutions, deepening investor confidence, and enhancing the market’s role in supporting economic growth and capital formation.
“Milestones such as this reinforce confidence in our institutions and demonstrate our collective determination to build a more efficient and globally competitive capital market,” he stated.
Also speaking at the event, the Chairman of Central Securities Clearing System (CSCS) Plc and chief executive of NGX Group, Mr Temi Popoola, said the transition represents a critical step in the broader evolution of Nigeria’s capital market.
He noted that while the achievement marks a significant milestone, it is part of a longer journey toward building a deeper, more liquid, and more globally competitive market capable of supporting sustained economic growth and capital formation.
“While today is a significant milestone, it is not the destination. It is part of a broader journey toward building a deeper, more liquid, efficient, and globally competitive capital market capable of supporting long-term economic growth and capital formation,” Mr Popoola stated.
On his part, the chief executive of CSCS Plc, Mr Shehu Shantali, said the milestone reflects the strength and operational readiness of Nigeria’s post-trade ecosystem, noting that the new settlement cycle would enhance transaction speed, improve liquidity efficiency, and reduce settlement exposure across the market.
“This transition is far more than a reduction in settlement timelines. It represents a strategic upgrade to market infrastructure and reinforces our commitment to building a more efficient, resilient, and globally competitive capital market,” he disclosed.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a loss of 0.21 per cent on Monday, June 1, with the market capitalisation down by N5.44 billion to N2.587 trillion from N2.592 trillion, and the Unlisted Security Index (NSI) falling by 9.10 points to close at 4,324.68 points compared with last Friday’s 4,333.78 points.
The unlisted securities exchange came under selling pressure yesterday, as investors trimmed their exposure to the landscape, with the volume of securities rising by 438.3 per cent to 3.6 million units from 666,853 units. Also, the value of securities increased by 465.9 per cent to N177.4 million from N31.4 million, and the number of deals surged by 37.0 per cent to 37 deals from 27 deals.
Great Nigeria Insurance (GNI) Plc closed the session as the most traded stock by value on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 61.2 million units exchanged for N4.4 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units traded at N415.7 million.
There were three price gainers and four losers on the first trading day of the new month yesterday, with FrieslandCampina Wamco Nigeria Plc up by N10.60 to N186.68 per share from N176.08 per share. MRS Oil Plc added N1.90 to close at N180.00 per unit versus N178.10 per unit, and Afriland Properties Plc grew by 5 Kobo to sell at N16.0o per share versus N15.90 per share.
On the flip side, CSCS Plc dropped N4.83 to trade at N72.97 per unit compared with the previous session’s N77.80 per unit, IPWA Plc lost 21 Kobo to sell at N2.03 per share versus N2.24 per share, Industrial and General Insurance (IGI) Plc fell by 6 Kobo to 54 Kobo per unit from 60 Kobo per unit, and Food Concepts Plc declined by 2 Kobo to N2.68 per share from N2.70 per share.
The market has commenced the T+1 settlement cycle, meaning securities transactions will be executed within one business day as part of efforts to enhance efficiency and speed in the Nigerian capital market.
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