Economy
The Challenges Facing Nigeria’s Economy
The Challenges Facing Nigeria’s Economy
The ongoing COVID-19 crisis is threatening to push Nigeria’s economy backwards, just a few years after the country successfully emerged from a damaging recession. The warning signs are flashing again as increased borrowing, a weakening currency and rising unemployment loom ominously.
As government and financial institutions struggle to remedy the situation, there is a growing demand for foreign exchange, forcing banks to ration outflow, while the hoped-for rally in oil prices has not materialised. Over-dependence on oil, policy inconsistency, insecurity and a persistent level of corruption have all had a dampening effect on the nation’s finances.
But Nigeria remains a nation with tremendous resources and potential, and there are reasons to be optimistic about the future, with a number of avenues to explore that could offer increasing prosperity and a way to guide the country to a firmer financial footing.
Promise of Agriculture
Agriculture remains a strength for Nigeria and it has the potential to help revive the economy. There are a number of plans in place, such as the Kano Agro Pastoral Project, that can help to galvanise this important part of the Nigerian economy. Nigeria is blessed with huge reserves of arable land and a significant farming population, offering a potential solution not just to economic downturn but also to the equally important issues of food poverty and food security.
There are promising signs that cooperation between agricultural specialists, state and national governments is starting to take effect, and by focusing on developing targeted crop value chains while improving the rural infrastructure, Nigeria’s farmers can be empowered to boost the economy.
Importance of Diversification
Nigeria has enormous human potential and economic ingenuity. The inventiveness of the Nigerian entrepreneur is on display across many sectors.
Take the thriving and growing mobile technology sector. Evidence suggests that mobile penetration increased from 36% to 50% between 2014 and 2017. That trend has continued with one estimate by Business Monitor International putting the likely number of mobile subscribers at 182 million by 2021, up from 153 million in 2017. Demand for mobile services has been driven both by technological advances and the dynamic marketing practices of Nigerian mobile companies.
This proliferation of mobile usage is also helping to drive the success of some of the top online casinos in Nigeria. The online casino sector, boosted by the ever-widening availability of mobile technology, is expanding rapidly, particularly among the increasingly affluent young Nigerian middle class.
Innovative local gaming companies are striking deals with major online casino content providers, as well as with international payment providers and digital support companies, enabling them to offer an ever more cutting-edge casino gaming experience.
The rise of the online casino and mobile sectors demonstrates Nigeria’s entrepreneurial potential. But fully unleashing that potential may first require tackling the country’s over-reliance on oil revenue. This has become a problem, but Nigeria has the opportunity to lead the way in designing the new green economy of the 2020s.
The government has already launched Africa’s first sovereign green bonds and has taken steps to extricate the country from oil dependency, starting with a cut in oil subsidies.
Money diverted from the oil industry can be directed into the renewables sector, while the Nigerian Ecological Fund has the potential to tackle some of the serious ecological problems facing the nation – a clean-up that can also boost the economy. The Ministry of Works, in conjunction with the wider government, can help to lead the way by bringing about green reforms in the Nigerian construction industry, while tackling the serious housing shortage in the country.
Rise of technology
Technology is another way in which Nigeria can help to steer its economic ship to safer waters. Although it can be difficult to focus on the future in times of economic difficulty, there is enormous untapped potential in Nigeria when it comes to technological change, not least among the country’s business sector. A strong push to adopt new methods, such as remote work, e-commerce and artificial intelligence, much of which has been given a boost by the pandemic, could reap dividends.
There is a huge potential demand for improved IT infrastructure, from collaboration tools that enable workers to operate effectively as a team while working at home, to teaching solutions that can enable teachers to deliver lessons remotely. And beyond that, the promises of cloud computing and smart homes offer Nigeria the opportunity to be bold and take the lead in African technology.
Retooled finance
Technology can also have a role to play in helping the Nigerian finance sector to contribute to the national economy. The pandemic has shown that more can be done in terms of automation and technical solutions to financing problems, while at the same time, the sector can do more to reach out to all sectors of society. The Nigerian finance industry is full of talent and the desire for innovation, and if unleashed, can play a major role in the nation’s recovery.
Like many other nations around the world, Nigeria has taken a hit due to COVID-19 and there are specific long-term problems that the country still needs to face. But the nation remains one of the most significant countries in the world and a powerhouse in Africa, and with sufficient guidance and investment, the potential of Nigerian farmers, business people, administrators, bankers and scientists can be harnessed to help build a more prosperous future.
By Adedapo Adesanya
The Economic and Financial Crimes Commission (EFCC) has intercepted eight trucks transporting suspected illegally mined solid minerals in Benue State as it intensifies the crackdown on illegal mining activities in the North Central region of the country.
This was disclosed in a statement by the anti-graft agency, on its official X handle, where it confirmed the arrests of the individuals involved.
The EFCC stated that the trucks were seized on Wednesday, March 19 in the Katsina-Ala Local Government Area of Benue State.
According to the EFCC, preliminary investigations revealed that the minerals—believed to be fluorite and iron stones—were mined from unauthorized sites in Logo Local Government Area of the state.
Business Post reports that the Benue State government had paused all mining activities, as it was responsible for some of the crisis in the state.
“We are determined to combat the illegal mining of Nigeria’s mineral resources and bring perpetrators to justice. The suspects will be charged to court as soon as investigations are concluded,” EFCC tweeted on X, formerly known as Twitter.
Illegal mining has been a growing concern in Nigeria, with authorities warning that the illicit extraction of solid minerals deprives the country of valuable revenue and contributes to environmental degradation.
The EFCC was involved in the issue of mining to quell further economic losses facing the nation.
According to the Minister of Solid Minerals, Mr Dele Alake, the government is losing trillions of Naira to unregulated and illegal mining activities.
He disclosed earlier this week that the Federal Executive Council (FEC) had approved N2.5 billion for the procurement of an integrated solution framework to combat illegal and unregulated mining activities.
He also disclosed that his ministry had opted for dialogue and collaboration with state governors rather than confrontation, saying many governors were initially unaware of the constitutional framework governing mining, but have now been engaged through discussions facilitated by the Nigeria Governors’ Forum (NGF).
Mr Alake noted that states must collaborate with federal authorities in addressing illegal mining and related criminal activities.
By Aduragbemi Omiyale
As part of the 2025 Global Money Week celebration, over 200 students were recently selected and equipped with essential financial literacy skills.
This seminar on money management tips was put together by the Nigerian Exchange (NGX) Group Plc, in collaboration with the Central Bank of Nigeria (CBN) and MinieMoney.
It underscored a shared commitment to fostering financial inclusion and equipping young Nigerians with the knowledge required for long-term financial well-being.
The event was organised to mark the Global Money Week, is a global initiative currently in its 13th edition designed to promote financial education among young people, ensuring they develop the critical thinking skills needed to make informed financial decisions.
The 2025 theme, Think Before You Follow, Wise Money Tomorrow, reinforces the importance of strategic financial planning from an early age.
The Head of Trading and Products at NGX, Mr Abimbola Babalola, highlighted the transformative power of financial literacy in shaping students’ futures.
“The financial choices you make today will determine the quality of your life tomorrow. Understanding saving, investing, and responsible money management early on will put you on the path to financial success,” he stated.
Also, the Assistant Director of the Consumer Protection Department at CBN, Mr Christian Mordi, introduced the CBN’s ‘Sabi Money’ platform, designed to enhance financial education nationwide.
“Financial literacy extends beyond numbers; it is about developing discipline, patience, and informed decision-making skills that foster economic security,” he noted.
On his part, the chief executive of MinieMoney, Mr Gbolahan Faniran, emphasized the importance of early investment habits and leveraging the power of compound interest.
“Achieving financial success is not about following trends but about making intentional money choices today that ensure a secure future,” he said.
Business Post reports that students from Vivian Fowler Memorial College for Girls, Dansol High School, Kith and Kin Educational Schools, Caleb British International School, Lagos Preparatory and Secondary School, and The Bells Comprehensive Secondary School attended the programme.
They engaged in insightful discussions on financial literacy, investment strategies, and capital market operations, with the added opportunity to experience firsthand the dynamics of the NGX trading floor.
By Adedapo Adesanya
The trio of Geo-Fluids Plc, Food Concepts Plc, and Industrial and General Insurance (IGI) Plc were extended the stay of the NASD Over-the-Counter (OTC) Securities Exchange in the red region for another trading day, weakening the alternative stock exchange further by 0.13 per cent on Thursday, March 20.
Geo-Fluids Plc lost 15 Kobo to trade at N2.70 per unit compared with the previous day’s N2.85 per unit, Food Concepts Plc declined by 6 Kobo to close at N1.49 per share versus Wednesday’s closing price of N1.55 per share, and IGI Plc tumbled by 2 Kobo to settle at 37 Kobo per unit, in contrast to the 39 Kobo per unit it traded a day earlier.
As a result, the NASD Unlisted Security Index (NSI) went down by 4.36 points to close at 3,373.62 points, in contrast to the previous trading day’s 3,377.98 points.
In the same vein, the market capitalisation of the bourse depreciated by N2.51 billion to settle at N1.948 trillion compared with the preceding day’s N1.951 trillion.
During the trading session, the volume of securities traded at the bourse crumbled by 99.4 per cent to 201,873 units from the 31.3 million units recorded on Wednesday, the value of securities bought and sold by the market participants moderated by 97.7 per cent to N776,509.51 from the N33.3 million quoted a day earlier, and the number of deals carried out by investors decreased by 26.1 per cent to 17 deals from 23 deals.
When the market closed for the day, Impresit Bakolori Plc remained the most active stock by value (year-to-date) with 533.9 million units sold for N520.9 million, followed by FrieslandCampina Wamco Nigeria Plc with 13.0 million units valued at N505.1 million, and Afriland Properties Plc with 17.5 million units worth N359.5 million.
In the same vein, Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 533.9 million units valued at N520.9 million, trailed by IGI Plc with 69.9 million units sold for N23.7 million, and Geo-Fluids Plc with 44.1 million units worth N88.9 million.
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