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How Nigerian Capital Market Can Combat COVID-19

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Timi Olubiyi

By Timi Olubiyi

Across the world, the impact of the novel coronavirus is still severe despite the ease of lockdown for economic reasons.

The uncertainty continues to heighten and no economy is spared from the fall-out from the COVID-19 outbreak.

Many African capital markets are bearish, Namibia, South Africa, Mauritius, Egypt, Morocco, Kenya, Ghana, Malawi, and a few others.

In Nigeria, the first quarter of the year 2020 in terms of performance closed in the red with a negative return of (20.65 percent), as against a negative return of (1.24 percent) in the first quarter of 2019.

The market capitalization of the Nigerian Stock Exchange (NSE), which represents the market value of all listed companies, lost about N2 trillion in the first quarter of 2020.

However, surprisingly the performance of the stock market in April 2020 was positive. The market performed with a gain of 8.08 percent to close the month of April at 23,021.01 points, from an opening level of 21,300.47 points at the beginning of the month.

In terms of market capitalization for the period, the value was up by N896 billion as at April 30, 2020, from an opening value of N11.101 trillion on April 1, 2020, to close at N11.997 trillion.

In May 2020, the market on month-on-month performance closed at 9.76 percent as against +8.08 percent gain recorded in April 2020. The performance hinged higher due to investors bargain hunting even though most of the trades were executed remotely.

This surprising feat in Nigeria, particularly during the COVID19 pandemic, could be attributed to smart investors bargain hunting and the release of good end-of-the-year financial results by some of the listed companies along with improved dividend declarations in recent time.

During this period, some of the companies that released their financials are MTN Nigeria Communications Plc, Vitafoam Nigeria Plc, Dangote Cement Plc, Julius Berger Nigeria Plc, Nigerian Breweries Plc, Zenith Bank Plc, Transcorp Hotels Plc, United Bank for Africa Plc, Transnational Corporation of Nigeria Plc, Guaranty Trust Bank Plc, Stanbic IBTC Holdings Plc, Access Bank Plc, Fidelity Bank Plc, Sterling Bank Plc, Seplat Petroleum Development Company Plc, 11 Plc, Dangote Sugar Plc, BUA cement Plc Total Plc, Airtel Plc Nestle Nigeria Plc, First Bank, Okomu Oil Plc, and BOC Gases Plc.

Nonetheless, the increasing number in the incidences of coronavirus (COVID-19) in Nigeria has been a huge concern, it could signal weak economic data, decline productivity, and falling consumption rate, which might even affect the overall outputs and performance of the economy eventually.

This projection is largely due to the global negative impact of coronavirus (COVID-19) pandemic on the economy, the weak inflow of foreign portfolio investments, high uncertainty in the economy, and owing to intense selling pressure occasioned by investors’ apathy in the capital market.

Already, the COVID-19 outbreak has forced a slow or halt in the physical operations of some businesses and that could heighten in the coming months.

The Nigerian stock exchange has been operational through remote trading with technology playing a significant role in the operations.

Likewise, companies have also adopted effective usage of technology to work remotely and mitigate the risk of total business shut down.

With the current realities, the next normal way to carry on business activities effectively in the meantime is through remote communications. Technology has the potential to still improve business efficiency and also improve transactions for businesses to perform, while this COVID-19 disruption persists.

The big question is internet data bundle cheap to sustain this efficiency? Agreeably, this is a different argument which is out of the context of this article.

Nonetheless, despite the promotion of technology adoption to ease business transaction in the meantime, the outbreak of the novel coronavirus (COVID-19) so far in Nigeria has been a bad indicator of economic performance and the capital market as a whole.

The level at which the coronavirus spread exponentially can result to damage consumption, purchasing power and services, and even investment decisions among investors.

Consequently, if the spread is not curtailed within a reasonable period, it might harm the inflow of foreign direct investments, imports and export trades, manufacturing, tourism, health, hospitality, services, travels and more than likely it might disrupt or crash the economic forecasts and revenue estimates of many businesses particularly SMEs in the country.

This pandemic might eventually impact negatively on the performance of the Nigerian stock exchange and that of many of the listed companies, given the high uncertainty around production, services, and demands if the COVID-19 continues to spread.

Rather than see the market perpetually closing on negative notes, adequate government policy response is recommended to immediately cushion the effect of the pandemic.

Though it is still too early to measure the full economic impact of COVID-19 on the capital market in Nigeria, however, the early signs do not look good.

Regulators in the capital market, as a matter of urgency, need to propose to government, direct policy responses to cushion the effect of the COVID-19.

This is imperative because most of SMEs and companies listed have experienced supply chain disruption and depressing investment climate. Therefore, government intervention or palliative is required for their sustainability.

As part of an effort to reduce the negative impact of COVID19 in the country, especially the disruption of regular activities and economic instability the capital market and the market operators can be assisted by the government.

The suspension of the proposed July 1, 2020, increase in electricity tariffs across the country by the electricity distribution companies (Discos) is recommended to ease the negative impact of COVID-19.

That said, the policy responses by the Nigerian government can further be reviewed to accommodate fiscal palliative measures and economic stimulatory measures targeted at the capital market to ameliorate the impact on the economy especially to save businesses, professionals and capital market operators.

Measures such as tax deferrals, tax holidays from states and the Federal Inland Revenue Services (FIRS), reduction in interest rates on all Central Bank of Nigeria (CBN) intervention facilities and relaxation of the stringent requirements are recommended.

Further to this, the approval of extension on moratorium on federal government funded loans, through Bank of Industry (BOI), Bank of Agriculture (BOA), and Nigeria Export-Import Bank (NEXIM Bank) and the Nigerian Communication Commission (NCC) can be considered.

The NCC can look into the downward review of the internet data cost to sustain business usage, especially for remote trading and e-commerce needs.

Allocation of contingency and crisis intervention funds to subsidies salaries of some private establishment that has been badly affected by COVID-19 pandemic in health, maritime, education sectors to mitigate the massive unemployment spike in the country.

Furthermore, technical proposals should be considered from the capital market professionals and operators for the expression of measures to help their businesses and stem the tide of COVID-19 impact.

The joint development of comprehensive policy for market sustainability and recovery where applicable by government and the capital market professionals is recommended at this time. This will in no small measure minimize the impact of the pandemic in the capital market landscape and stimulate the economy at large. It will also attract more capital market participation and encourage more listing on the exchange, which in turn will provide market liquidity.

The real subject matter for the government and other economic policymakers is to see that the virus is short-lived in Nigeria.

Consequently, the performance of the Nigerian capital market will be significantly influenced by how the government can quickly address the COVID-19 pandemic.

It is imperative to state that the capital market can always support economic growth if the needed policies are put in place.

Currently, Nigeria majorly depends on crude oil foreign revenue to have a stable economy and this revenue expectation has been dashed due to global shocks. This lull and weakening of the economy also affect the performance of the listed companies on the exchange and the capital market as a whole.

Therefore, to mitigate the negative impact and to response to the COVID-19 consequences, a government intervention is necessary.

On the part of the regulators to deepening market participation, it is recommended that necessary support be given to large firms, SMEs including government agencies to list.

The Securities and Exchange Commission (SEC) and NSE should relax the listing requirements to accommodate more qualified companies to list on the stock exchange.

More so, the lowering of transaction and listing costs will directly attract more listings and deepen market participation.

Point of note is that the co-operation and co-ordination between and among the various financial markets regulators such as SEC, NSE, CBN, Pension Commission (PenCom), Debt Management Office (DMO) and National Insurance Commission (NAICOM) need to be strengthened to assure coherent of policies.

Therefore, the post-COVID-19 regulatory regime should involve consistent and coordinated policy responses and pronouncement from these regulators and agencies to create considerable effective implementations, which will in turn boost market confidence.

I foresee a return of foreign investors when a bit of stability and flattening of the curve of the pandemic has been achieved globally particularly in Nigeria.

Besides, regulators and government need to improve policies and laws to promote foreign investors and inward foreign direct investments (FDIs) because it will eventually stimulate economic development.

The policy of ease of doing business in Nigeria can be upgraded to include foreign portfolio investment policy options.

Furthermore, Foreign Direct Investment (FDI)-incentives (tax-related) to considerably increase foreign participation in our capital market ecosystem needs to reflect in the Post-COVID recovery policy.

In conclusion, equities are grossly undervalued at current prices; most stocks are far below their real worth and book value.

Also, the current valuations already offer opportunities to those who want to position for the long term. Essentially, hedging against inflation is achievable with the current equity prices if held over in the long term.

How may you obtain advice or further information on the article?

Dr Timi Olubiyi is an Entrepreneurship and Small Business Management expert. He is a prolific investment coach, Chartered Member of the Chartered Institute for Securities & Investment (CISI) and a financial literacy specialist. He can be reached on the twitter handle @drtimiolubiyi and via email: [email protected] for any questions, reactions, and comments.

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Guide to Employee Training That Reinforces Workplace Safety Standards

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Workplace Safety Standards

Workplace safety is not sustained by policies alone. It is built through consistent training that shapes daily behaviour, decision-making, and accountability across every level of an organisation. When employees understand not only what safety rules exist but why they matter, they are far more likely to follow them and intervene when risks arise. Effective safety-focused training protects workers, strengthens operations, and reduces costly incidents that disrupt productivity and morale.

As industries evolve and workplaces become more complex, employee training must go beyond basic orientation sessions. Reinforcing safety standards requires an ongoing, structured approach that adapts to new risks, changing regulations, and real-world job demands. A thoughtful training strategy helps create a culture where safety is a shared responsibility rather than a checklist item.

Establishing a Foundation of Safety Awareness

The first purpose of workplace safety training is awareness. Employees cannot avoid hazards they do not understand. Comprehensive training introduces common workplace risks, clarifies acceptable behaviour, and sets expectations for personal responsibility. This foundational knowledge empowers employees to recognise unsafe conditions before incidents occur.

Safety awareness training should be tailored to the specific environment in which employees work. Office settings require education on ergonomics, electrical safety, and emergency evacuation procedures, while industrial workplaces demand detailed instruction on machinery risks, protective equipment, and material handling. When training reflects actual job conditions, employees are more engaged and better equipped to apply what they learn.

Clear communication is essential during this stage. Using plain language and real examples helps employees connect training concepts to daily tasks. When safety awareness becomes part of how employees think and talk about their work, it begins to shape behaviour consistently across the organisation.

Integrating Safety Training into Daily Operations

Safety training is most effective when it is integrated into everyday work rather than treated as a one-time event. Ongoing reinforcement ensures that safety standards remain top of mind as tasks, equipment, and responsibilities change. Regular training sessions create opportunities to refresh knowledge, address new risks, and correct unsafe habits before they lead to injury.

Incorporating short safety discussions into team meetings helps normalise these conversations. Supervisors play a critical role by modelling safe behaviour and reinforcing expectations during routine interactions. When employees see safety emphasised alongside productivity goals, it reinforces the message that both are equally important.

Hands-on training also strengthens retention. Demonstrations, practice scenarios, and real-time feedback allow employees to apply safety principles in controlled settings. This experiential approach builds confidence and reduces hesitation when employees encounter hazards in real situations.

Aligning Training with Regulatory Requirements

Workplace safety training must align with applicable regulations and industry standards to ensure legal compliance and worker protection. Laws and regulations change frequently, making it essential for organisations to keep training materials updated. Failure to do so can expose employees to unnecessary risk and organisations to legal consequences.

Training programs should clearly explain relevant safety regulations and how they apply to specific roles. Employees are more likely to comply when rules are presented as practical safeguards rather than abstract mandates. Documenting training completion and maintaining accurate records also demonstrates organisational commitment to compliance.

Many organisations rely on support from compliance training companies to navigate complex regulatory landscapes and design programs that meet both legal and operational needs. These partnerships can help ensure training remains accurate, consistent, and aligned with evolving requirements without overwhelming internal resources.

Encouraging Participation and Accountability

Effective safety training depends on active participation rather than passive attendance. Employees should be encouraged to ask questions, share concerns, and contribute insights based on their experiences. When workers feel heard, they become more invested in maintaining a safe environment.

Creating accountability is equally important. Training should clarify individual responsibilities and outline the consequences of ignoring safety standards. Employees need to understand that safety is not optional or secondary to performance goals. Reinforcement from leadership ensures that unsafe behaviour is addressed consistently and constructively.

Peer accountability also strengthens safety culture. When training emphasises teamwork and shared responsibility, employees are more likely to watch out for one another and intervene when they see risky behaviour. This collective approach reduces reliance on supervision alone and builds resilience across the workforce.

Adapting Training for Long-Term Effectiveness

Workplace safety training must evolve alongside organisational growth and workforce changes. New hires, role transitions, and technological updates introduce risks that require refreshed instruction. Periodic assessments help identify gaps in knowledge and opportunities for improvement.

Data from incident reports, near misses, and employee feedback provides valuable insight into training effectiveness. Adjusting content based on real outcomes ensures that training remains relevant and impactful. Organisations that treat training as a dynamic process are better equipped to respond to emerging risks.

Long-term effectiveness also depends on reinforcement beyond formal sessions. Visual reminders, updated procedures, and accessible reporting tools help sustain awareness. When safety standards are supported through multiple channels, employees receive consistent cues that reinforce training messages daily.

Conclusion

Reinforcing workplace safety standards through employee training requires intention, consistency, and adaptability. Training that builds awareness, integrates into daily operations, aligns with regulations, and encourages accountability creates a safer environment for everyone involved. When employees understand their role in maintaining safety, they are more confident, engaged, and prepared to prevent harm.

A strong training program is not simply a compliance exercise. It is an investment in people and performance. Organisations that prioritise meaningful safety training protect their workforce while fostering trust, stability, and long-term success.

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Debt is Dragging Nigeria’s Future Down

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more concessional debt

By Abba Dukawa 

A quiet fear is spreading across the hearts of Nigerians—one that grows heavier with every new headline about rising debt. It is no longer just numbers on paper; it feels like a shadow stretching over the nation’s future. The reality is stark and unsettling: nearly 50% of Nigeria’s revenue is now used to service debt. That is not just unsustainable—it is suffocating.

Behind these figures lies a deeper tragedy. Millions of Nigerians are trapped in what experts call “Multidimensional Poverty,” struggling daily for dignity and survival, while a privileged few continue to live in comfort, untouched by the hardship tightening around the nation. The contrast is painful, and the silence around it is even louder.

Since assuming office, Bola Ahmed Tinubu has embarked on an aggressive borrowing path, presenting it as a necessary step to revive the economy, rebuild infrastructure, and stabilise key sectors.

Between 2023 and 2026, billions of dollars have been secured or proposed in foreign loans. On paper, it is a strategy of hope. But in the hearts of many Nigerians, it feels like a gamble with consequences yet to unfold.

The numbers are staggering. A borrowing plan exceeding $21 billion, backed by the National Assembly, alongside additional billions in loans and grants, signals a government determined to keep spending and building. Another $6.9 billion facility follows closely behind. These are not just financial decisions; they are commitments that will echo into generations yet unborn.

And so, the questions refuse to go away. Who will bear this burden? Who will repay these debts when the time comes? Will it not fall on ordinary Nigerians already stretched thin to carry the weight of decisions they never made?

There is a growing fear that the nation may be walking into a future where its people become strangers in their own land, bound by obligations to distant creditors.

Even more troubling is the sense that something is not adding up. The removal of fuel subsidy was meant to free up resources, to create breathing room for meaningful development.

But where are the results? Why does it feel like sacrifice has not translated into relief? The silence surrounding these questions breeds suspicion, and suspicion slowly erodes trust.  As of December 31, 2025, Nigeria’s public debt has risen to N159.28 trillion, according to the Debt Management Office.

The numbers keep climbing, but for many citizens, life keeps declining. This disconnect is what hurts the most. Borrowing, in itself, is not the enemy. Nations borrow to grow, to build, to invest in their future. But borrowing without visible progress, without accountability, without compassion for the people, it begins to feel less like strategy and more like a slow descent.

If these borrowed funds are truly building roads, schools, hospitals, and opportunities, then Nigerians deserve to see it, to feel it, to live it. But if they are funding excess, waste, or luxury, then this path is not just dangerous—it is devastating.

Nigeria’s growing loan profile is a double-edged sword. It can either accelerate development or deepen economic challenges. The key issue is not just borrowing, but what the country does with the money. Strong governance, transparency, and investment in productive sectors will determine whether these loans become a foundation for growth or a long-term liability. Because in the end, debt is not just an economic issue. It is a moral one. And if care is not taken, the price Nigeria will pay may not just be financial—it may be the future of its people.

Dukawa writes from Kano and can be reached at [email protected]

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Nigeria’s Power Illusion: Why 6,000MW Is Not An Achievement

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Nigeria Electricity Act 2023

By Isah Kamisu Madachi

For decades, Nigeria has been called the Giant of Africa. The question no one in government wants to answer is why a giant cannot keep the lights on.

Nigeria sits on the largest proven oil reserves in Africa, holds the continent’s most populous nation at over 220 million people, and commands the fourth largest GDP on the continent at roughly $252 billion. It possesses vast deposits of solid minerals, a fintech ecosystem that accounts for 28% of all fintech companies on the African continent, and a diaspora that remits billions of dollars annually.

If potential were electricity, Nigeria would have been powering half the world. Instead, an immediate former minister is boasting about 6,000 megawatts.

Adebayo Adelabu resigned as Minister of Power on April 22, 2026, citing his ambition to contest the Oyo State governorship election. In his resignation letter, he listed among his achievements that peak generation had increased to over 6,000 megawatts during his tenure, supported by the integration of the Zungeru Hydropower Plant. It was presented as a great crowning legacy. The claim deserves scrutiny, and the numbers deserve context.

To begin with, the context. Ghana, Nigeria’s neighbour in West Africa, has a national electricity access rate of 85.9%, with 74% access in rural areas and 94% in urban areas. Kenya, with a 71.4% national electricity access rate, including 62.7% in rural areas, leads East Africa. Nigeria, by contrast, recorded an electricity access rate of just 61.2 per cent as of 2023, according to the World Bank. This is not a distant or poorer country outperforming Nigeria. Ghana’s GDP stands at approximately $113 billion, less than half of Nigeria’s. Kenya’s economy is around $141 billion. Ethiopia, which has invested massively in the Grand Ethiopian Renaissance Dam and is already exporting electricity to neighbouring countries, has a GDP of roughly $126 billion. All three are doing more with far less.

Now to examine the 6,000-megawatt, Daily Trust obtained electricity generation data from the Association of Power Generation Companies and the Nigerian Electricity Regulatory Commission, covering quarterly performance from 2023 to 2025 and monthly data from January to March 2026. The data shows that in 2023, peak generation was approximately 5,000 megawatts; in 2024, it reached approximately 5,528 megawatts; in 2025, it ranged between 5,300 and 5,801 megawatts; and by March 2026, available capacity had declined to approximately 4,089 megawatts. The grid never recorded a verified peak of 6,000 megawatts or higher. Adelabu had, in fact, set the 6,000-megawatt target publicly on at least three separate occasions, missing each deadline, and later admitted the target was not achieved, attributing the failure to vandalism of key transmission infrastructure.

In February 2026, Nigeria’s national grid produced an average available capacity of 4,384 megawatts, the lowest monthly average since June 2024. For a country with over 220 million people, this means electricity supply remains far below national demand, with the grid delivering only about 32 per cent of its theoretical installed capacity of approximately 13,000 megawatts. To put that in sharper comparison: in 2018, 48 sub-Saharan African countries, home to nearly one billion people, produced about the same amount of electricity as Spain, a country of 45 million. Nigeria, the continent’s most resource-rich large economy, is a significant part of that embarrassing equation.

The tragedy here is not just technical. It is a governance failure with compounding human costs. An economy that cannot provide reliable electricity cannot competitively manufacture goods, cannot industrialise at scale, cannot attract the volume of foreign direct investment its endowments warrant, and cannot build the digital infrastructure that would allow it to lead on artificial intelligence, data governance, and the emerging critical minerals economy where Africa’s next great opportunity lies. Countries with a fraction of Nigeria’s mineral wealth and human capital are already debating those frontiers. Nigeria is still campaigning on megawatts.

What a departing minister should be able to say, given Nigeria’s endowments, is not that peak generation touched 6,000 megawatts at some unverified moment. He should be saying that Nigeria now generates reliably above 15,000 megawatts, that rural electrification has crossed 70 per cent, and that the country is on a credible trajectory toward the kind of energy sufficiency that unlocks industrial growth. That is the standard Nigeria’s size and resources demand. Anything below it is not an achievement. It is an apology dressed in a press release.

The power sector has received billions of dollars in investment across multiple administrations. The 2013 privatisation exercise, the Presidential Power Initiative, the Electricity Act of 2023, and successive reform promises have produced a sector that still, in 2026, cannot guarantee eight hours of reliable supply to the average Nigerian household. That a minister exits that ministry citing a megawatt figure that fact-checkers have shown was never actually reached, and that even if reached would be unworthy of celebration given Nigeria’s potential, captures the full depth of the problem. The ambition is too small. The accountability is too thin. And the country deserves better from those who are privileged to manage its extraordinary, squandered potential.

Isah Kamisu Madachi is a policy analyst and development practitioner. He writes via [email protected]

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