Economy
Nigeria’s Revenue-to-GDP Ratio Too Low for Economic Growth—IMF
By Dipo Olowookere
The International Monetary Fund (IMF) has said Nigeria’s revenue–to-gross domestic product (GDP) ratio of about 9 per cent was too low to trigger the economic growth projected by President Bola Tinubu in his Renewed Hope Agenda.
Addressing journalists at its last press briefing for 2023 on Thursday, the global lender said the administration of Mr Tinubu must boost the government’s revenue to have funds to achieve his goals.
On May 29, 2023, Mr Tinubu took over from Mr Muhammadu Buhari, promising to jump-start the economy and work tirelessly to address food security, end hunger, eradicate poverty, create jobs, and help the most vulnerable members of society
To kick start, he removed the payment of subsidies for petrol and adopted a foreign exchange liberalisation policy, though the exchange rate between the official and the black markets remains wide (N843.07/$1 at NAFEM and N1,180/$1 at the black market.)
At the briefing yesterday, the IMF Director for Communications Department, Ms Julie Kozak, praised Mr Tinubu for the “two bold and important reforms shortly.”
However, she stressed that the revenue-to-GDP ratio must be improved to “create fiscal space for social and development spending.”
“Raising revenue from the very current low revenue to GDP ratio of 9 per cent is essential to create fiscal space for social and development spending.
“Nine per cent of GDP is a very low revenue-to-GDP ratio, and it is not high enough to be able to support strong social safety nets and development spending, to help protect vulnerable households and also to meet Nigeria’s development needs.
“The 2024 budget aims to reduce the fiscal deficit while also creating space for these priority spendings, both on the social side and also on the development side,” she said.
While commenting on the rising inflation in the country, Ms Kozak said the Central Bank of Nigeria (CBN) may have to raise the monetary policy rate (MPC) at its next Monetary Policy Committee (MPC) meeting.
Recall that last month, the National Bureau of Statistics (NBS) said inflation in October 2023 increased by 27.33 per cent, while the MPC at its last meeting in July pegged the benchmark interest rate at 18.75 per cent.
By Adedapo Adesanya
Union Dicon Salt Plc has raised an alarm that it has been unable to establish contact with Aims Limited, which holds a significant equity stake in the company, stalling its revival plans.
In a formal announcement issued to the Nigerian Exchange (NGX) Limited, shareholders and the investing public, Union Dicon Salt, said Aims Limited owns 64 million shares, representing 40 per cent of the company’s issued share capital, effectively positioning it as one of the most influential shareholders in the listed salt manufacturing firm. Aims Limited is a Brazilian company.
This development, according to the statement signed by Mr Alfred E. James, the company secretary, has raised fresh questions about shareholder communication and governance oversight within Nigeria’s listed companies.
The company disclosed that repeated attempts to communicate with the shareholder have so far been unsuccessful, prompting the unusual step of issuing a public notification in compliance with provisions of the exchange’s rulebook governing disclosures by listed issuers.
“In line with the provisions of 17.5 Rule Book of the Exchange 2015 (Issuers Rules), Union Dicon Salt Plc hereby notifies the Nigerian Exchange Limited, shareholders of the company, and the general public,” the notice stated, before outlining the inability to reach the shareholders despite several efforts.
Union Dicon Salt Plc said the public disclosure is intended to formally request that Aims Limited immediately establish contact with the company through its corporate offices located at Kirikiri Lighter Terminal, Kirikiri Phase 2, Apapa, Lagos, or through the office of the company secretary.
Established in 1984, the Company operates a 60 – 40 per cent joint venture between the Defence Industries Corporation of Nigeria (DICON) and its technical partners, Aims. In 1987, it established a factory at Kirikiri Lighter Terminal in Lagos, where Dicon Salt was importing bulk salt, doing some refining processes, and selling the product through the company’s established network. Its products include pure, refined, and iodised edible salts.
By Aduragbemi Omiyale
The rights issue of Linkage Assurance Plc, involving 12,320,000,000 ordinary shares of 50 Kobo each at N1.32 per share, has been approved by the Securities and Exchange Commission (SEC).
Business Post reports that the underwriting company is offering shareholders on the basis of two new ordinary shares for every three ordinary shares held as of January 22, 2026.
Linkage Assurance, in a notice to the Nigerian Exchange (NGX) Limited, disclosed that the offer opens on March 11, 2026, and closes on April 23, 2026.
Shareholders interested in the rights issue are required to submit the completed participation forms, together with payment or evidence of payment for the full amount payable, on or before Thursday, April 23, 2026, to any of the issuing houses or receiving agents listed in the rights circular.
The insurance firm intends to use funds from the exercise to meet the required minimum capital introduced by the Nigeria Insurance Industry Reform Act, 2025, and to expand into key areas of insurance business.
The disclosure noted that “the rights issue provides existing shareholders with the opportunity to increase their equity holdings in the company, thereby reinforcing their participation in and support of the company.”
It advised shareholders “to contact their stockbrokers and/or financial advisors for further information regarding the offer.”
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded its first loss of the week with a 1.29 per cent decline on Thursday, March 5.
This brought down the NASD Unlisted Security Index (NSI) by 54.84 points to 4,256.41 points from 4,256.41 points, while the market capitalisation shed N32.82 billion to close at N2.546 trillion versus Wednesday’s N2.524 trillion.
The loss was due to the drop in the share prices of securities on the trading platform led by MRS Oil Plc, which lost N20.00 to trade at N210.00 per unit versus the previous session’s N230.00 per unit.
FrieslandCampina Wamco Nigeria Plc dropped N4.35 to sell for N124.48 per share compared with Wednesday’s price of N128.83 per share, Central Securities Clearing System (CSCS) Plc depreciated by N2.33 to N80.16 per unit from N82.59 per unit, Lagos Building Investment Company (LBIC) Plc shrank by 37 Kobo to N3.75 per share from N4.12 per share, and Food Concepts Plc declined by 33 Kobo to N3.06 per unit from N3.36 per unit.
Conversely, Newrest Asl Plc added N5.06 to sell at N55.59 per share versus N50.53 per share, and Geo-Fluids Plc grew by 12 Kobo to N3.30 per unit from N3.18 per unit.
During the session, the volume of securities jumped 43.4 per cent to 3.8 million units from 2.6 million units, the value of securities increased by 560.5 per cent to N423.3 million from N2.6 million, and the number of deals dipped 8.7 per cent to 42 deals from the preceding session’s 46 deals.
CSCS Plc remained the most traded stock by value (year-to-date) with 36.9 million units worth N2.3 billion, followed by Okitipupa Plc with 6.3 million units traded for N1.1 billion, and MRS Oil Plc exchanged 3.4 million units for N506.6 million.
Resourcery Plc ended the day as the most traded stock by volume (year-to-date) with 1.05 billion units sold for N408.7 million, followed by Geo-Fluids Plc with 123.1 million units valued at N481.6 million, and CSCS Plc with 36.9 million units worth N2.3 billion.
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