Economy
Stablecoins Will Address Forex Risks Businesses Face in Africa—Ledig
By Dipo Olowookere
Businesses operating in Africa encounter many challenges and the chief among them is foreign exchange (FX) liquidity because of most countries on the continent rely on traditional systems that are no longer suited for how business is done today, the Head of Product and Technologies at Ledig Technologies, Mr Chiagozie Iwu, informed Vanguard in a recent interview.
“One major issue you’ll find in about 70 per cent to 80 per cent of African countries, especially for businesses with global exposure, is access to foreign exchange.
“The ability to access foreign exchange, to hedge against currency risks, and to sell goods and services while getting paid in a strong, globally leveraged currency like the US dollar, are some of the biggest challenges businesses face,” he stated, listing other issues as security risks, inadequate regulatory frameworks, and a lack of proper legal protection.
He blamed the inability of African nations to update their forex processes as the reason for this, noting that, “When you use FX systems designed for doing business in the 1970s, you simply can’t keep up with today’s global pace.”
“When it comes to foreign exchange, there are traditional markets for FX facilitation. However, in countries like Nigeria, Kenya, Malawi, Ghana, and Egypt, many of these traditional markets are broken. They tend to favour certain types of businesses, and if you don’t fit into those categories, you’re likely to struggle with accessing and managing foreign exchange for your operations,” Mr Iwu disclosed.
However, he pointed out that the blockchain technology and stablecoins are gradually bridging the gap because they provide a more flexible alternative as they are often more liquid than the US dollar itself.
“Foreign exchange in Africa is a big problem. Traditional systems have failed us, and I see stablecoins stepping in to bridge this gap because they are properly digitized.
“Stablecoins are going to be a major financial engine in Africa, and I don’t just mean USD-backed stablecoins. It also includes local stablecoins like the CNGN,” he said,” referencing the strong adoption of stablecoins like USDT and USDC among the younger generations, emphasizing that stablecoins are already becoming a major part of the financial system.
He also praised the CNGN as the first proper attempt to create a regulated Nigerian stablecoin, expressing hope that more African countries will follow suit.
Mr Iwu stated that Ledig is in the financial market to help businesses navigate the FX struggles they go through.
“We help companies, including those facilitating payments for retail users, access liquidity. Our OTC desk enables high-ticket, high-volume foreign exchange and stablecoin conversions between local currencies and stablecoins, and vice versa.
“We also provide hedging instruments that allow businesses to protect themselves against currency exchange risks.
“Whatever you are doing in Africa, whether it’s trade financing, payments, e-commerce, trading, imports, exports, Ledig helps guarantee stablecoin liquidity you can leverage to scale, removing the FX hurdles that usually slow businesses down,” he stated, averring that many companies serving the retail trade sector rely on Ledig’s infrastructure to serve their customers.
“While having the US dollar for foreign exchange protection is important, having a properly digitized Nigerian Naira that is accessible to people and businesses outside Africa is equally critical. It’s initiatives like this that are also very useful for companies like Ledig,” Mr Iwu submitted.
Business Post reports that Ledig Technologies is a fintech company focused on providing financial solutions for businesses with foreign exchange exposure to Africa.
By Modupe Gbadeyanka
The Nigerian maritime sector may soon witness the inflow of $600 million in investment from APM Terminals.
On the sidelines of the ongoing Africa CEO Forum in Kigali, Rwanda, the Regional President of APM Terminals for Africa-Europe, Mr Igor van den Essen, informed President Bola Tinubu that his company was interested in deepening its investment in Nigeria.
According to a statement issued by the Special Adviser to the President of Information and Strategy, Mr Bayo Onanuga, the investment would be deployed in Apapa port modernisation, logistics infrastructure, and long-term private-sector investment in Nigeria’s maritime sector.
President Tinubu welcomed the investments, emphasising that Nigeria is repositioning itself for greater competitiveness through ongoing economic reforms and infrastructure modernisation.
He said the country is determined to move beyond structural bottlenecks and outdated systems, stressing the need for advanced technology, faster cargo processing, and improved operational efficiency across the nation’s ports.
He emphasised that Nigeria possesses the market scale, talent base, and economic potential to support globally competitive maritime and logistics infrastructure investments and called on other investors to take advantage of Nigeria’s reform outcomes.
Earlier, Mr Igor van den Essen lauded President Tinubu’s reform agenda and policy direction, which had strengthened investor confidence and created renewed momentum for long-term infrastructure investments.
He described Nigeria as a strategic stronghold within its African operations, referencing over 20 years of collaboration and substantial existing investments in the country’s port ecosystem.
He reaffirmed his company’s commitment to expanding investments in Nigeria and disclosed plans to support the development of world-class terminal infrastructure and technology-driven port operations.
He also commended Mr Tinubu for establishing the National Single Window (NSW), which has streamlined trade procedures, improved Customs coordination, and reduced delays in cargo clearance.
By Adedapo Adesanya
Dangote Petroleum Refinery has filed a new lawsuit against the federal government over the fuel import licences issued to marketers and the Nigerian National Petroleum Company (NNPC) Limited.
Last week, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issued licences to six marketers for the importation of 720,000 metric tonnes of Premium Motor Spirit, known as petrol.
The marketers are NIPCO, AA Rano, Matrix, Shafa, Pinnacle, and Bono. The development comes amid claims by the NMDPRA that the Dangote Petroleum Refinery now supplies over 90 per cent of Nigeria’s daily petrol consumption.
Dangote said in the filing that the licences issued undermine its operations and contravene the law, which it argues allows imports only when domestic supply falls short.
Named in the suit against the country is the Attorney General and Minister of Justice, Mr Lateef Fagbemi. The federal government can only be sued via his office.
The case signals renewed tensions almost a year after Dangote withdrew an earlier lawsuit challenging similar licences. That case sought to nullify import permits issued to the NNPC and several traders.
The new filing asks the Federal High Court in Lagos to set aside import permits issued or renewed by the NMDPRA, arguing they breach an earlier order to maintain the status quo.
Dangote ended the earlier lawsuit in July 2025 without explanation, leaving unresolved questions over competition and supply in one of Africa’s largest fuel markets.
Nigeria has long relied on petrol imports due to underperforming state refineries. However, Dangote’s 650,000 barrels per day capacity refinery was touted to end that dependence.
Despite the presence of the facility, imports have continued to cover supply gaps as the refinery ramps up output.
The NMDPRA did not issue a single import licence in the first quarter of 2026 because the Dangote refinery had the capacity to meet Nigeria’s petrol demand.
Business Post gathered that only upon intervention by President Bola Tinubu were the licenses granted for the second quarter by the NMDPRA.
By Adedapo Adesanya
The Nigeria Bureau of Statistics (NBS) has revealed that Nigeria’s headline inflation rate in April 2026 rose to 15.69 per cent, beating analysts’ expectations of 15.95 per cent, as the fallout from the Iran war continued to affect the global economy.
The statistical office on Friday showed the headline inflation rate for April on a month-on-month basis was 2.13 per cent, while the food inflation rate in the review month was 16.06 per cent on a year-on-year basis.
The rise in prices comes as an energy price shock stemming from the continued conflict in the Middle East, which stoked food prices and affected relative exchange rate stability.
According to the NBS, “this can be attributed to the rate of change in the average prices of the following products: Millet whole grain, yam flour, ginger (Fresh), beef, garri, tam tuber, pepper (Fresh), cray fish, cassava tuber, Beans, Irish Potatoes, tomatoes (fresh), wheat grain (Sold loose), soya beans, guinea corn, plantain, carrots (Fresh) etc.”
“The average annual rate of food inflation for the twelve months ending April 2026, relative to the previous twelve-month average, was 17.55%, which was 17.05% points lower than the average annual rate of change recorded in April 2025 (34.60%),” the NBS said.
Analysts at Coronation Research had earlier projected that the inflation rate in Nigeria would be at 15.95 per cent on a year-on-year basis in April 2026. It added that the expected inflation rate signals a return toward the underlying disinflation trajectory and could be a pivotal data point in shaping Monetary Policy Committee (MPC) deliberations at the next policy meeting.
It also expects food inflation to further ease, as food and non-alcoholic beverages remain the dominant contributor to headline CPI, accounting for about 40 per cent of the Consumer Price Index (CPI) basket.
The MPC of the Central Bank of Nigeria (CBN) will meet this month, the first since the Iran War started in late February, to review core monetary policies and possibly make adjustments.
The committee reduced the Monetary Policy Rate (MPR) by 50 basis points from 27.0 per cent to 26.5 per cent at its 304th Monetary Policy Committee (MPC) meeting in February.
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