Economy
Why the Nigerian Economy Requires Immediate Reforms
Not too long ago, Bola Ahmed Tinubu won the presidential election. He will take over the presidency of Nigeria in May 2023 and will have the difficult challenge of reviving the weak Nigerian economy by implementing many crucial changes.
GDP Growth Rate
The National Bureau of Statistics’ latest data on Nigeria’s Gross Domestic Product (GDP) shows a decrease in the annual GDP growth rate to 3.10% in 2022, compared to 3.40% in 2021. However, in the 4th quarter of 2022, the economy grew by 3.52%, in contrast to the 2.25% in the previous quarter.
Non-oil sectors were responsible for most of the growth. More precisely, 95.66%, while Nigeria’s oil sector contributed 4.34%. Daily oil production increased to 1.34 million barrels per day in Q4, up from the previous quarter’s 1.20 million barrels. However, it is still lower than the 1.50 million barrels per day recorded in the same quarter of 2021.
The services sector was also one of the main reasons for growth, contributing 56.27% to the GDP in the 4th quarter of the year.
Furthermore, the information and communication sector also played a significant role. It caused a 16.22% growth in the 4th quarter, compared to 15.35% in the 3rd quarter and 15.21% in the 4th quarter of 2021.
Another sector that helped with the GDP growth was the trade sector. It added 13.20% to the GDP in Q4, higher than the 12.45% in Q3. Although the sectors mentioned above had a positive effect on the GDP, there are still some sectors that lowered it.
Agriculture’s contribution to the GDP in the 4th quarter was 24.90%, a bit lower than the previous quarter’s 27.55%. Severe flooding across the country significantly set back agriculture, causing the sector to record a 0.94% decrease.
Manufacturing’s contribution to real GDP in 2022 was 8.40%, lower than 15% in 2021. So, the new president can work on expanding labour productivity through education to improve the country’s GDP.
Socio-Economic Issues
Mrs Zainab Ahmed, the Minister of Finance, Budget, and National Planning, mainly worries about the government’s ability to fund important programs due to low tax compliance among Nigerians. In the past, citizens paid taxes, but this changed since Nigeria became an oil-based economy. But, perhaps quite surprisingly, Nigeria’s gambling industry could provide a good source of revenue as it is relatively advanced compared to other African countries.
In general, governments tax the gambling industry to generate revenue, which also applies to Nigeria. However, with the online gambling world remaining largely unregulated in Nigeria (as well as in the vast majority of African countries), Nigeria is missing out on a significant potential source of income, not to mention that Nigerian citizens gambling online remain primarily unprotected due to the lack of regulation in the country.
With no deposit bonuses and other enticing offers brought about by the rise of online gambling attracting more and more players each year, it’s crucial to address the problem of the lack of legislation in this sector – for both players’ and the country’s sake.
And although tax collection has increased significantly from N6 trillion in 2021 to N10 trillion in 2022, the government still needs to address the growing expenditure that outpaces revenue growth by almost double annually.
Improving the Transmission Infrastructure
Power transmission is a huge issue for Nigerian citizens. Despite installing almost 13 GW of grid power-producing capacity, only an average of 3.4 GW reaches customers.
According to Prof. Kingsley Moghalu, the next government must increase revenue and address waste and corruption in governance by bringing in competent professionals to manage the economy. In addition, the new president must take direct ownership and leadership of the power sector, and mandate key players, to enhance transmission infrastructure.
The CEO of Proton Energy, Mr Oti Ikomi, emphasizes the need for a single individual who is accountable and takes instructions from the president, who must take ownership and not just hold a titular position. This individual must have technical, administrative, and supervisory responsibilities and meet regularly with the president.
He cited the example of Egypt, where the President had weekly meetings, which improved the transmission infrastructure. He added that Siemens Energy, a giant global energy corporation, is willing to work with Nigeria, but the country must also be ready to expedite things.
Domestic Debts
Dr Baba Musa, the Director-General of the West African Institute for Financial and Economic Management, finds Nigeria’s large debt a major challenge. He highlights the need to remove fuel subsidies and increase revenue through innovative means, such as cancelling tax relief.
Dr Musa also emphasizes the importance of spending only on essential items until revenue improves. He calls for coordination between the fiscal and monetary authorities and suggests evaluating the quality of fiscal spending.
In contrast, Mrs Zainab Ahmed states that the main issue with the Nigerian economy is the lack of ability to generate sufficient revenue rather than the current debt situation. Therefore, domestic revenue needs to be increased to reduce reliance on borrowing.
All in all, the new Nigerian president, Bola Ahmed Tinubu, must tackle the various economic challenges by implementing critical reforms that will ensure sustainable recovery.
The president must prioritize fiscal management, establish a unified and stable market-based exchange rate, and put an end to fuel subsidies. These measures are necessary to navigate the country toward economic prosperity.
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.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN