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The Challenges Facing Nigeria’s Economy

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Nigeria Economy challenges

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.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Economy

Dangote Cement Assures Shareholders Lasting Value, Pays N753.8bn Dividend

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dangote cement shareholders AGM

By Aduragbemi Omiyale

Shareholders of Dangote Cement Plc have been assured of lasting value for their investment and trust in the cement producing firm.

This assurance was given by the chief executive of Dangote Cement, Mr Arvind Pathak, at the company’s Annual General Meeting (AGM), where shareholders approved the payment of N753.8 billion as dividend for the 2025 financial year.

The cement brewer paid a cash reward of N45 per share for the year, a 50 per cent increase in dividend payout from the N30 per share a year earlier, reaffirming the company’s position as one of the most rewarding investments on the Nigerian Exchange (NGX).

The increase follows the company’s outstanding 2025 financial performance and underscores its unwavering commitment to shareholder value creation.

It was the highest dividend payout in the history of Dangote Cement and reflects the strength of its earnings capacity, robust cash generation ability, and disciplined execution of its growth strategy

Dangote Cement delivered a landmark financial performance in 2025. Earnings per share rose significantly to N59.86, demonstrating the company’s resilience and operational excellence despite prevailing macroeconomic challenges.

Mr Pathak said the dividend increase is backed by the organisation’s strong financial performance and healthy balance sheet.

“The decision to increase our dividend by 50 per cent to N45 per share demonstrates the strength of Dangote Cement’s earnings capacity and cash generation capability.

“As we continue to execute our pan-African growth strategy, we remain committed to creating lasting value for our shareholders, investing in the future of the business, and supporting Africa’s industrial development. Our shareholders have stood by us throughout our journey, and we are delighted to reward that trust with another significant increase in returns,” he stated.

The chief executive noted that the firm continues to strengthen its footprint across Africa through strategic investments and capacity expansion projects.

In 2025, Dangote Cement commissioned a 3-million-tonne-per-annum grinding plant in Côte d’Ivoire, reinforcing its presence in West Africa and increasing total installed capacity to 55 million tonnes per annum (Mta) across eleven African countries.

He added that the Company remains focused on its long-term objective of expanding installed capacity to 80Mta by 2030, while driving operational efficiency, increasing exports, enhancing sustainability initiatives, and improving shareholder returns.

On his part, the chairman of Dangote Cement, Mr Emmanuel Ikazoboh, said the increase in dividend payout reflects the company’s determination to reward shareholders for their continued confidence and support.

“Our commitment remains to create sustainable value for all stakeholders. This significant increase in dividend demonstrates the strength of our business model, our disciplined approach to capital allocation, and our confidence in the future. We are grateful for the trust our shareholders have placed in us over the years and remain committed to delivering superior returns while maintaining the highest standards of corporate governance and operational excellence,” he stated.

The organisation’s dividend history has continued to set benchmarks in the Nigerian capital market. Over the past 15 years, Dangote Cement has distributed more than N3.3 trillion in dividends to shareholders, reinforcing its reputation as a dependable creator of long-term wealth.

The latest dividend increase follows a previous 50 per cent rise from N20 per share to N30 per share, underscoring a consistent record of rewarding shareholders.

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Economy

Binance Crosses $1bn in Assets Under Management for Stocks Trading

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Binance

By Aduragbemi Omiyale

Stock trading on the world’s leading blockchain ecosystem and digital asset infrastructure provider, Binance, has hit a significant milestone, surpassing $1 billion in assets under management (AUM) in 30 days since launch.

This milestone follows the recent achievement by bStocks, Binance’s tokenised 1:1 US securities, which hit $100 million in AUM within two weeks of launch.

Since the platform began stock trading on June 1, 2026, it has recorded more than $3 billion in total trading volume.

Stock trading on Binance gives users access to over 7,000 US stocks and ETFs, settled in stablecoins, directly within the app alongside their existing crypto holdings.

Analysis showed that the average daily inflows stood at $42 million, while approximately 73 per cent of users come from emerging markets, with one in 7 visitors to Binance’s stock trading page registering an account; of those new sign-ups, nearly 90 per cent went on to place a trade.

In addition, fractional orders averaged 35 per cent of equity trading volume, with users able to participate from as little as $5, while almost 71 per cent of equity holdings are allocated to the Technology sector, with almost half (48 per cent) of that directed toward Semiconductors.

Nearly 740 of the 7,000 available stocks and ETFs have already been traded, with the Technology sector generating approximately 23 times the trading volume of other sectors, underscoring the conviction that Binance users have behind these positions.

The allocation patterns are consistent with a financially literate user base actively managing sector exposure rather than trading indiscriminately.

Binance Research projects that by 2031, crypto exchanges as a category could channel $2 trillion in incremental capital into global equity markets and bring 300 million new investors into the asset class.

“A billion dollars in 30 days is a sign of the demand that has been waiting decades for a door to walk through. The walls that kept most of the world out of US stocks were never as solid as they looked. We built this for the hundreds of millions of people who never had a way in,” the Head of Exchange and Trading at Binance,” Shunyet Jan, stated.

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Economy

Velex Advisory’s Approach to Financial Structuring for Business Growth

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Velex Advisory

Expansion across Africa is often framed as a market opportunity.

New customers, growing adoption, and expanding digital ecosystems continue to attract businesses into multiple African markets. Yet for many companies, growth across the continent becomes difficult to sustain beyond initial entry.

Across African markets, businesses must operate within different tax regimes, currency environments, banking systems, and capital access frameworks. These differences introduce financial complexity that directly impacts how companies manage cash flow, allocate capital, and sustain operations across jurisdictions.

Over time, these issues increase financial risk and slow growth, limiting the ability of emerging growth companies and established businesses alike to scale sustainably.

Financial Advisory as a Strategic Growth Enabler

According to Velex Advisory, managing this complexity requires more than accounting. It requires a structured approach to how financial decisions are made across the business.

“Poor financial management and structure is one of the biggest challenges businesses across Africa face, especially as they expand. In many cases, growth happens faster than the systems supporting it, which then leads to cash flow pressure, inefficiencies across markets, and difficulty sustaining that growth,” says Jonathan Nwanze, Finance Manager, Velex Advisory West Africa.

Businesses, therefore, need structured, strategic financial advisory to help them:

  • Align their financial structure and capital structure with the expansion strategy
  • Manage capital across multiple jurisdictions, and maintain visibility across revenue and cost centers.
  • Prepare for investment, funding, and capital raising
  • Ensure compliance without limiting operational flexibility.

This is what enables businesses to move from operating to scaling with clarity, financial flexibility, and control across markets.

How Velex Advisory Structures Finance for Scalable Growth

Financial advisory is one of Velex Advisory’s core service areas, supporting businesses by aligning financial strategy with how they operate and expand across African markets.

Rather than treating finance as a back-office function, the firm works with companies to ensure that financial decisions support business growth, market entry, and long-term sustainability across multiple jurisdictions.

“Scaling across multiple markets requires more than access to capital. It requires discipline in how that capital is structured, deployed, and managed across the business,” says Vadim Mildov, Executive Chairman, Velex Group.

At Velex Advisory, financial advisory is delivered as a structured, hands-on process that connects financial planning with operational and strategic decision-making across the business.

This includes:

i) Tax Advisory

Operating across multiple markets requires careful alignment with different tax regimes.

Velex Advisory supports clients in structuring their operations to ensure tax efficiency while maintaining compliance with local regulations. This includes corporate tax positioning, cross-border tax considerations, and aligning tax structures with revenue flows, business plans, and overall financial goals.

ii) Financial and Investment Analysis

As businesses scale, financial visibility becomes increasingly important.

Velex Advisory provides financial and investment analysis to help businesses assess performance, evaluate growth opportunities, and prepare for investment or expansion. This includes supporting investment readiness, understanding valuation, and identifying financial risks across markets.

iii) Banking Advisory and Assurance

Access to banking infrastructure and financial institutions varies significantly across African markets.

Velex Advisory supports businesses in establishing and managing banking relationships, navigating local financial infrastructure, and aligning capital and liquidity structures with operational needs. This includes guidance on liquidity management, capital planning, and financial systems that support cross-border operations.

Connecting Financial Structure to Business Growth

Financial advisory does not operate in isolation. Velex Advisory also supports businesses across key operational and legal functions that directly impact how companies operate and expand.

“Financial structuring and legal structuring are deeply connected. Decisions around transactions, partnerships, and expansion have direct implications on risk exposure and long-term sustainability,” explains Laura Gacho, Legal Manager, Velex Advisory East Africa.

On the legal side, the firm provides support in licensing and regulatory compliance, intellectual property and data protection, and transaction advisory, including joint ventures, M&A transactions, capital raises, and strategic partnerships.

From a business advisory perspective, Velex Advisory works with clients on business establishment and development, market entry and growth strategy, human resources consulting, and due diligence and valuation support, ensuring that operational, structural, and strategic decisions are aligned from the outset.

By integrating business, legal, and financial advisory services, Velex Advisory supports companies in building structures that are not only compliant but capable of sustaining long-term success and growth across African markets.

As part of the broader Velex Group and working alongside Velex Hub and Velex Investments, the firm connects advisory, investment readiness, and expansion strategy into a single, coordinated approach across markets.

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