Economy
Weakening Naira May Persist in 2023—AfDB
By Adedapo Adesanya
Nigeria is expected to continue facing a weakening Naira amid tightening global financial conditions, says a new report from the African Development Bank (AfDB).
This will be a worse-case scenario as African economies remain resilient with a stable outlook in the 2023-2024 fiscal year.
The report, Africa’s Macroeconomic Performance and Outlook (MEO) 2023, estimates Africa’s average GDP to stabilize at 4 per cent in the next two years, up from 3.8 per cent in 2022.
In a statement from the bank on Wednesday, this was presented on the sidelines of the recently concluded 36th African Union Assembly in Addis Ababa, Ethiopia, by the lender’s chief economist and vice president, Mr Kevin Urama.
He said that the continent could benefit from high demand for its commodities as countries seek alternatives for food and energy in response to disruptions caused by the war in Ukraine.
The continent, he noted, remains a treasure trove for smart investors globally, but it must strive for higher growth rates, more inclusive economies, and greater resilience to external shocks.
“The stable outlook projected for 2023–2024 reflects the continuing policy support in Africa, global efforts to mitigate the impact of external shocks and rising uncertainty in the global economy,” he said.
The new publication, to be released in the first and third quarters of each year, will provide African policymakers, global and domestic investors, researchers, and other development partners with an up-to-date, evidence-based assessment of the continent’s recent macroeconomic performance and short-to-medium-term outlook amid dynamic global economic developments.
Mr Urama urged bold policy actions. “To meet the significant financing gaps in Africa, it is imperative to enact policies that can mobilize and leverage private financing for development in Africa,” he said.
The unfavourable global conditions have led to rising inflation, higher debt servicing costs and increased risk of debt distress in developing countries, including Africa.
“As in many emerging market economies, tightening financial conditions and the appreciating US dollar have had dire consequences for most African economies,” Mr Urama said. It has also become difficult for African countries to access international capital markets for new financing, he added.
Most African currencies, especially in commodity-exporting countries, lost substantial value against the Dollar in 2022 due to monetary policy tightening in the United States. The depreciation rates ranged from 21 per cent in Malawi to 69 per cent in South Sudan.
Mr Urama cautioned that currency weaknesses in Africa’s more globally integrated economies, such as Algeria, Kenya, Nigeria, and South Africa, may persist in 2023.
“Key drivers of the currency depreciations include the tightened global financial conditions and weak external demand, macroeconomic imbalances, constrained revenues and weak investment flows, and political risk aversion associated with countries’ election cycles,” Mr Urama said.
He said that African countries’ fiscal positions have already been stretched by COVID-19 policy responses and support for vulnerable populations against rising food and energy prices amid high debt and the impacts of climate change.
Other economic headwinds include the spillover effects of rising geopolitical tensions, particularly the Russian invasion of Ukraine. These conditions are pushing price stability beyond most central banks’ grasp.
By Adedapo Adesanya
The Minister of Finance, Mr Wale Edun, says Nigeria’s crude oil production has risen to 1.8 million barrels a day, contrasting with available production data.
Speaking in an interview with Reuters on Wednesday on the sidelines of the International Monetary Fund and World Bank Group spring meetings in Washington D.C., the Minister said the current oil output would generate fiscal breathing space that will allow the government to support vulnerable households as it ploughs ahead with reforms.
Nigeria, which is a member of the Organisation of the Petroleum Exporting Countries (OPEC), is Africa’s largest oil producer.
Mr Edun said rising crude production was positive for Nigeria’s revenue, foreign exchange and the country’s fiscal situation.
“It gives us that extra fiscal space within which to look at … helping the vulnerable households at this time,” he told the publication, noting that support would be targeted, adding “there is no thought of any return or retardation to broad untargeted subsidies.”
Mr Edun also said the Bola Tinubu-led administration was also committed to continuing its reform programme.
“Nigeria is in a position where the resilience that has been built in the economy is actually very obvious for all to see,” he said.
Despite the 1.8 million barrels per day figure claim, Business Post reports that production data for March 2026 from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that Nigeria attained 1.546 million barrels per day, made up of 1.382 million barrels per day of crude, 42,809 barrels per day of blended condensate and 120,442 barrels per day of unblended condensate.
The average crude production represents 92 per cent of the OPEC quota, which is fixed at 1.5 million barrels per day.
By Adedapo Adesanya
The Securities and Exchange Commission Nigeria (SEC) has unveiled a new regulatory framework that would allow companies operating within free trade zones to raise capital from the Nigerian public, subject to strict eligibility and disclosure requirements.
The proposal, titled New Rules for Public Offering of Securities by a Free Trade Zone Entity, is anchored on provisions of the Investments and Securities Act (ISA) 2025 and is designed to integrate free trade zone enterprises into the domestic capital market while strengthening investor protection.
Under the proposed rules, only entities duly licensed by recognised free zone authorities, such as the Nigeria Export Processing Zones Authority and the Oil and Gas Free Zones Authority, will be eligible to issue shares to the public.
The commission clarified that the rules will apply strictly to free trade zone entities (FTZEs), excluding companies operating outside designated zones, even if licensed by zone authorities. It also emphasised that no FTZE will be permitted to offer securities to the public without prior approval from the Commission.
To qualify, an FTZE must demonstrate a minimum of three years’ operating track record immediately preceding its application, with at least two years of independent business activity within a free trade zone. Additionally, such entities are required to have competent senior management and a minimum paid-up share capital of not less than N7.5 billion.
The SEC said FTZEs seeking to access the capital market must subject themselves to Nigeria’s tax laws and comply fully with ongoing disclosure and reporting obligations applicable to publicly listed companies.
The proposed framework also outlines extensive registration requirements. Issuers will be required to submit evidence of licensing by a free zone authority, constitutional documents, and verified details of shareholding structure and board composition.
A “No Objection” letter from the relevant free zone authority will also be mandatory, alongside a commitment to list the offered shares on a registered securities exchange.
The SEC noted that the rules are intended to provide clarity on eligibility criteria and operational conditions for FTZEs seeking to conduct public offerings, thereby deepening the capital market and aligning free zone operations with national financial system standards.
By Aduragbemi Omiyale
Shareholders of Guinness Nigeria Plc will share about N4.38 billion as an interim dividend for the first quarter of 2026, the board has disclosed.
This cash reward amounts to N2.00 per share, as the company has shares outstanding of 2,190,382,819 on the floor of the Nigerian Exchange (NGX) Limited.
The brewer stated that the interim dividend would be paid to investors whose names appear on the register of members as of the close of business on April 20, 2026.
The dividend payout is being proposed following the sustained profitability reflected in the unaudited financial results of the company in the first three months of this year and its “strong performance in FY 2025.”
It would be “paid from distributable profits in accordance with Sections 426–428 of the Companies and Allied Matters Act (CAMA) 2020.”
Analysis of the performance of the brewery giant between January and March 2026 showed that revenue grew by 4 per cent on a year-on-year basis to N122.77 billion from N118.34 billion in the same period of last year, while the gross profit contracted to N43.48 billion from N44.52 billion due to prevailing cost pressures within the operating environment.
The company’s operating profit also shrank to N17.18 billion from N18.00 billion in the first quarter of 2025 due to elevated marketing & distribution costs and administrative expenses.
However, the reduction in net finance costs to N1.43 billion from N7.72 billion in Q1 of 2025 helped the organisation to grow its post-tax profit to N10.39 billion in the period under review versus the N7.03 billion recorded in the corresponding period of last year.
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