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Tinubu Tax Reforms: Transformative Policy Deployment for Nigerian Economy in a Generation – IMPI

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The Independent Media and Policy Initiative (IMPI) has said that the new tax reforms will go down in the country’s history as President Bola Tinubu’s major legacy to Nigerians.

This according to the group is because of the potentials of the new laws to transform the Nigerian economic space more than any policy deployment in a generation, if well implemented.

In a statement signed by its Chairman, Dr. Omoniyi Akinsiju, IMPI noted that it came to that conclusion after a cursory look at the Nigeria Tax Act (NTA) 2025.

It said: “In the tradition of objective analysts, we have reviewed the new tax laws within the framework of policy contextuality, realism, and pertinence. Our verdict is that Nigeria’s federal administration, led by President Tinubu, has gifted the country a body of legacy fiscal policies with the potential to transform the Nigerian economic space more than any policy deployment in a generation.

“Based on our evaluation, the four tax acts — the Nigeria Tax (Fair Taxation) Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act — meet all the fiscal conditions required for accelerated and inclusive economic growth.

“By our reckoning, these tax reforms, as reflected in the substance of the four tax acts, alongside the removal of fuel subsidies and the harmonisation of foreign exchange transactions windows, are at the heart of the coordinated effort to reset the Nigerian economy on a sustainable and inclusive growth path.

“The ideal tax system raises essential revenue without excessive government borrowing. It should also do so without discouraging economic activities or deviating too much from tax systems in other countries.

“On this count, we submit that President Tinubu has accomplished multiple fiscal objectives in a single strategic manoeuvre, consolidating and reshaping Nigeria’s fragmented and complex tax architecture and emphasising rebuilding trust in the system.

“The new tax regime promotes tax compliance through fairness and positions the country as an attractive destination for domestic and foreign investments. In this light, Nigeria has just now commenced its long-held crystallisation of its economic renaissance.”

The group also pointed out that the new tax law has multiple provisions targeted at boosting domestic and foreign investment.

“With the implementation of the Nigerian tax laws starting in January 2026, foreign direct investment inflows into the country are expected to be reinvigorated. A major thrust in this regard is the adoption of the Minimum Effective Tax Rate (ETR) in the Nigerian Tax Act 2025 and other fiscal measures.

“Whereas the normal company income tax rate on a large company in Nigeria is 30 percent of the company’s profit, with the adoption of the ETR, Nigerian companies that are members of a multinational group with an aggregate group turnover of 750 million euros and above or have an annual turnover of 50 billion Naira and above will now be subject to a minimum effective tax rate (ETR) of 15% of their net Income.

“The goal is to avoid the double taxation of dividends and unrealised gains or losses. This reduction in tax rates and clarity around double taxation for multinational companies will undoubtedly influence the flow of global capital to Nigeria.

“This is in addition to introducing the Economic Development Incentive, which replaces the “pioneer” tax holiday incentive. This incentive introduces a 5% tax credit per annum for 5 years on qualifying capital expenditure purchased by eligible companies within 5 years, effective from the production date.

“The Act further provides that if a company has unused tax credits or qualifying capital expenses, it can carry them forward for 5 years. The EDI effectively reduces the company’s income tax obligation for a five-year consecutive period if it is part of a multinational group. Another attraction for global entrepreneurial capital is the prospect of establishing a residence in Nigeria.

 

“In addition, the tax exemption threshold for selling company shares in Nigerian companies has been increased to 150 million Naira (from 100 million Naira) in any 12 consecutive months, provided that the gains do not exceed 10 million Naira. This is another ease-of-doing-business policy.

“The overall tax structure, including the progressivity of income taxes, can influence income distribution and aggregate demand, affecting economic growth. This is substantially reflected in the NTA 2025. Section 56 of the Act stipulates that small companies with a gross turnover of 100 million Naira or less per annum and total fixed assets not exceeding 250 million Naira now enjoy zero per cent income tax.

“This is an extension of the threshold for benefiting companies from 25 million Naira in turnover under the 2020 Finance Act to 100 million Naira in the NTA 2025. This higher threshold captures more Nigerian companies, especially those considered to be medium-sized, in categorising companies that are no longer required to pay Company Income Tax (CIT).

“The most profound provision of the NTA 2025 is the zero tax charge on the personal income of Nigerians earning between 0 and 800,000 Naira annually. Nothing demonstrates the progressive nature of the new tax laws than this.

“We submit that this exposition of the progressivity of income taxes, as captured in the NTA 2025, will influence income distribution and aggregate demand, thereby driving economic growth. We can now envision the impact of the disposable income available to the approximately 5,800,000 wage workers in this category,” the policy statement added.

 

Udeme Ufot to Chair QEDNG Creative Powerhouse Summit

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Mighty Media Plus Network Limited, publishers of the online newspaper QEDNG, has announced Udeme Ufot as Chairman of the inaugural QEDNG Creative Powerhouse Summit.

Ufot is the Group Managing Director of SO&U, one of Africa’s foremost marketing communications groups.

The announcement was made in a statement on Friday. It follows the recent confirmation that the summit will take place on Tuesday, August 12, 2025, at Radisson Blu Hotel, Isaac John Street, Ikeja, Lagos.

Themed “Financing as Catalysts for a Thriving Creative Economy,” the summit will bring together key figures in the creative space—including industry leaders, investors, policymakers, and emerging talents—to discuss ways to boost the sector’s growth and sustainability.

Olumide Iyanda, Chief Executive Officer of Mighty Media Plus Network Limited and Convener of the summit, said Ufot’s career achievements and support for the creative economy make him an ideal choice.

“The summit will explore innovative funding solutions, fostering partnerships between creatives and investors, and provide tools for effective financial management. It will also serve as a space for collaboration between creatives, industry leaders, and policymakers to drive sustainable growth,” Iyanda said.

He recalled Ufot’s long-standing relationship with QEDNG, dating back to the platform’s launch in 2014. According to him, Ufot’s guidance and encouragement helped shape QEDNG’s direction and identity.

“Mr Ufot’s position as chairman will underscore his role as a thought leader and champion of Nigeria’s creative industry. His leadership and insights will inspire participants to pursue innovation and excellence, reinforcing the importance of strategic collaboration. It will also highlight his pivotal contributions to the advancement of the creative sector in Nigeria,” Iyanda added.

Ufot began his career in 1984 at Insight Communications, where he rose to the position of Deputy Creative Director (Art). In 1989, he joined CASERS as Creative Director. Just six months later, he co-founded SO&U, which has since become one of Nigeria’s most respected advertising agencies.

He holds a Bachelor’s degree in Industrial Design from Ahmadu Bello University, Zaria, and has also completed programmes at the Swedish Institute of Management and the Lagos Business School.

Over the years, Ufot has held several leadership roles in the industry. He served as President of the Association of Advertising Agencies of Nigeria (AAAN) and Chairman of the Advertising Practitioners Council of Nigeria (APCON).

He also chairs the Board of the Policy Innovation Centre, sits on the board of the Nigeria Economic Summit Group (NESG), and co-chairs its Policy Commission on Tourism, Hospitality, Entertainment, Creative Industries and Sports (THECS).

Ufot is committed to developing future industry leaders. He mentors young professionals and lectures at the School of Media and Communication, Pan-Atlantic University, where he chairs the advisory board.

He is a past President of the Lagos Business School Alumni Association and former Board Chair of LEAP Africa, a non-profit organisation focused on youth leadership and entrepreneurship. He also serves on the board of Special Olympics Nigeria.

In 2014, the Federal Government of Nigeria honoured him with the Member of the Order of the Federal Republic (MFR) for his contributions to the corporate sector.

The QEDNG Creative Powerhouse Summit is open to a broad audience, including artists, filmmakers, musicians, designers, advertisers, academics, and financial institutions. It is expected to be a landmark event for collaboration, innovation, and investment in Nigeria’s creative economy.

NESG-Stanbic IBTC Business Confidence Monitor: Easing Macro-economic Pressures, Favorable Business Climate

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The Business Confidence Monitor (BCM) is the flagship survey-based report of the Nigerian Economic Summit Group (NESG), supported by Stanbic IBTC.

The report obtains qualitative information on the current business performance within the Nigerian economy and gauges expectations about overall economic activities in the short term. It is anchored on business managers’ optimism on key leading economic indicators such as investment, prices, demand conditions, employment, etc.

The NESG-Stanbic IBTC BCM combines leading qualitative indicators on Production, Investment, Export, Demand Conditions, Prices, Employment, and the General Business Situation to gauge the overall business optimism of the Nigerian economy.

The target respondents for the Business Confidence Survey (BCS) are business establishments operating in Nigeria that have been engaged in economic activities since the beginning of 2023. The survey is administered to senior managers and business executives.

Businesses in Nigeria maintained a positive performance streak for another month, as the BCM Index stayed in the expansion region for the sixth consecutive month in 2025.

According to the NESG–Stanbic IBTC Business Confidence Monitor (BCM), the Current Business Index rose to 113.6 points in June, up from 109.8 points in May 2025. This performance is attributed to several tailwinds, including easing inflationary pressures, improved investor confidence and climate, and stronger business resilience across key sectors.

Sectoral analysis showed expansion across all sectors and broader economic activities. Strong business growth was observed in Manufacturing (123.6), non-manufacturing (120.7), and Trade (121.0) in June 2025. The Agriculture and Services sectors also expanded, though only slightly above the origin (100 index points), reaching 108.9 and 106.3 index points, respectively.

However, non-manufacturing’s performance declined when compared with its May 2025 level of 122.2. This decline is linked to factors such as credit squeeze, rising inventories due to weak demand, and high (weak) exchange rates, which fuel imported inflation and escalate production costs, especially as many companies in this sector depend on imported inputs.

Despite the overall positive trend, structural challenges constrained broader business growth. Key BCM sub-indices investment, export, supply order, prices, and employment recorded lower values compared to the previous month.

The cost of doing business also rose in June, reversing the slight relief observed in May 2025. Businesses identified major constraints such as limited access to financing, persistent electricity supply shortages, inconsistent economic policies, inadequate foreign exchange availability, and elevated commercial lease and rental costs.

In June 2025, the NESG–Stanbic IBTC Business Confidence Monitor (BCM) Index for the Agriculture sector rebounded from its temporary contraction in May 2025, returning to the expansion region. The sector index rose to 108.9 points in the month, up from 98.2 points in May.

This recovery was primarily driven by a swift rebound in the Crop Production sub-sector, which contributed over 80% of total output. The reversal of the May 2025 downturn is attributed to several favorable developments: the harvest period coinciding with the New Yam Festival celebrated nationwide, the commencement of wet-season planting, a boost in livestock activities following the inclusion of high-yield Danish dairy heifers, and the operationalisation of various agro-processing initiatives supported by multilateral development institutions.

A breakdown of performance across the five agricultural sub-sectors shows that only Fishing recorded a contraction (below 100 points) in June 2025. Other sub-sectors experienced expansion in business activities, with significant growth in Crop Production (109.6, up from 95.1 in May 2025). Agro-Allied (108.2), Livestock (105.2), and Forestry (100.0) also remained in the expansion region.

Despite these gains, many agribusiness owners pointed to several ongoing challenges affecting their operations, with limited access to finance being the most critical. Many reported difficulty securing loans, which limits their ability to procure essential inputs like feed, drugs, and agricultural equipment. Other challenges include infrastructure deficits particularly unreliable power supply and weak transportation and logistics networks rising input costs, high rental and operational expenses, growing insecurity, and regulatory burdens.

Unstable power supply remains a major concern, especially for poultry and fish farmers who rely heavily on cold storage and water systems, thus increasing their energy costs. This situation contributed to a rise in the cost-of-doing business index to 136.3 in June, from 120.2 in May 2025.

NESG–Stanbic IBTC Business Confidence Monitor (BCM) Index for the manufacturing sector showed that businesses experienced expansion, recording an index of 123.6 points in June 2025. This marks a significant improvement from 114.4 points in May 2025.

The uptick reflects stronger performance across key sub-sectors, boosting overall manufacturing output in Nigeria. Major contributors to this expansion include Textile, Apparel & Footwear; Cement; Plastic and Rubber Products; Wood and Wood Products; and Pulp, Paper and Paper Products.

Despite this progress, manufacturers highlighted persistent structural constraints, raw material shortages, unreliable electricity, high import tariffs, inflation, and insecurity. Rising production costs, high rents, imported machine parts, and diesel worsened by weak domestic currency continue to weigh on output and profits.

Multiple taxes, weak demand, unstable policies, and poor access to finance further stifle growth and expansion. In addition, insecurity hampers the sourcing of raw materials, further disrupting production. While most sub-sectors recorded positive performance, some particularly Motor Vehicle and Assembly posted declines. Still, the strength of major sub-sectors outweighed these losses, driving the sector’s overall index improvement.

Business conditions in Nigeria’s non-manufacturing sector posted a reading of +120.7 points in June 2025. This marks the second month in a row of declining business performance, highlighting growing concerns among businesses about the challenging economic environment.

While still within expansion territory, the index continues a downward trend from 123.6 points in April and 122.2 in May, reflecting growing strains on sector-wide business optimism. Many non-manufacturing industries attributed the weakening momentum to persistent structural and macroeconomic challenges. Poor power supply has increased reliance on costly diesel, while high rents, dilapidated roads, and other infrastructural deficits have inflated production and transportation costs, eroding business efficiency. Although the overall performance remained positive, the outlook varied across sub sectors.

Apart from Oil and Gas Services, which reported improved business activity, all other sub-sectors registered a decline compared to May, with “Other Non-Manufacturing” sliding into contraction at 98.4 points. Amplifying these pressures are rising exchange rates and restricted access to finance, which hinder procurement and planning.

Meanwhile, mounting regulatory burdens and elevated inflation continue to compress productivity and profit margins. These worsening conditions have increased operational costs, curtailed expansion, and weakened investor confidence across the sector.

Nigeria’s Services sector sustained its business expansion momentum in June 2025, following a slight slowdown in the previous month (May 2025). The NESG–Stanbic IBTC Services Business Confidence Monitor (BCM) Index rose to 106.3 points from 104.5 in May 2025.

The improvement in business performance was driven by growth in the Broadcasting and Real Estate sub-sectors, supported by rising client/consumer demand and more stable operating conditions Five of the six major service sub-sectors recorded business expansion.

However, the Telecommunications and Information Services sub-sector experienced a contraction due to structural challenges, including the rising cost of service delivery primarily energy-related-delayed tariff adjustments, high exchange rates, and soaring dollar-denominated expenses for tower leases, network equipment, and international connectivity.

Other Services sub-sectors reported weak expansion in June, as amplified business constraints such as energy-related cost pressures, logistics bottlenecks, currency volatility, and persistent security issues, particularly in northern and rural areas continued to hinder service growth and raise operating costs. These factors eroded competitiveness and dampened business activity during the period.

The NESG–Stanbic IBTC Trade index recorded an expansion in June 2025, with the index rising to 121.0 points, up from 114.1 points in May 2025. The Retail sub-sector showed a notable rebound, shifting from the contraction zone of 89.2 points in May to 111.7 points in June 2025.

In contrast, the Wholesale sub-sector experienced a slight decline but remained in the expansion zone, registering 130.3 points in June. This performance underscores the enduring structural and macroeconomic constraints that continue to weigh heavily on the trade sector.

The modest improvement in some areas of sectoral performance was largely driven by increased consumer demand for essential goods, relative stability in the retail prices of fast-moving consumer goods (FMCGs), and improved conditions in supply chain logistics.

Traders across key urban centers reported higher sales volumes in food items, personal care products, and household essentials categories typically considered non-discretionary partly due to heightened demand from festival-related activities nationwide.

Despite these gains, many trade businesses in Nigeria continue to struggle with a wide range of structural and operational challenges that impede their growth and profitability. Chief among these is the lack of capital, followed closely by market price volatility and logistics and transportation bottlenecks.

These challenges discourage investment, reduce business competitiveness, and make it increasingly difficult for entrepreneurs to sustain operations. Entrepreneurs frequently cite limited access to affordable financing and prohibitively high interest rates on loans as key constraints. These financial barriers hinder the ability to expand operations, replenish inventory, or invest in productivity-enhancing tools.

To capture the short-term outlook and performance expectations of business owners in the country, the NESG–Stanbic IBTC Future Business Expectation Index provides insights into the levels of optimism and pessimism among businesses for the next one to three months.

For June 2025, the index stood at 134.5 points, reflecting a slight improvement from 132.4 points in May 2025. Across the sectors, the Manufacturing sector recorded the highest optimism at 160.4 points, followed by Trade (158.0 points) and non-manufacturing (153.5 points).

Meanwhile, the Services sector, at 122.3 points, showed the lowest level of optimism regarding expected improvements in the business environment. Notably, sentiment improved in four sectors; Non-manufacturing, Manufacturing, Services, and Agriculture compared to May 2025, suggesting that despite higher index scores, businesses remain cautiously optimistic in their expectations due to ongoing macroeconomic uncertainties.

The generally optimistic outlook for Nigerian businesses is driven by a combination of seasonal economic activity, policy-driven interventions, relative exchange rate stability, ongoing infrastructure development, and a gradual recovery in consumer demand.

These drivers continue to support cautious optimism across various sectors, particularly in Agriculture, Retail Trade, Non-manufacturing, and Services. As these positive trends continue to build momentum, many businesses are positioning themselves to take advantage of new opportunities and more favorable operating conditions.

 

Universal Insurance, NHIA, PTAD, Rite Foods Sponsor NAIPE 2025 AGM

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The Universal Insurance Plc, National Health Insurance Authority (NHIA), Pension Transitional Arrangement Directorate (PTAD) as well as Rite Foods Limited will sponsor the 2025 Annual General Meeting (AGM) of the Nigerian Association of Insurance and Pension Editors (NAIPE).

This year’s NAIPE AGM will be held on Tuesday, July 8, 2025 at the Nigerian Insurers House in Victoria Island, Lagos.

NAIPE is the umbrella body for journalists covering insurance and pension sectors in Nigeria.

NAIPE holds its AGM in July every year and companies that sponsor the AGM have the unique opportunity to market their products and services to NAIPE members in the course of the event who will in-turn push out the information to the general public through publication of stories and analysis in their mediums and platforms.

Stories generated from the event will be in the media for over one month.

The Universal Insurance Plc is one of the nation’s largest personal lines insurers with over N8 billion in assets, selling eight major lines of insurance, including auto, property and commercial.

Universal Insurance offers a broad spectrum of insurance products for all types of businesses, corporate and individuals with unique services delivery.

According to Universal Insurance Plc, “Our vision is to be a dominant, specialised non-life insurer in Nigeria, creating and delivering value to stakeholders while our mission is to offer specialised non-life insurance protection to clients inspired by innovation, efficiency and prompt claims settlement.”

On the other hand, the National Health Insurance Authority (NHIA) was established under the National Health Insurance Act which was signed into law on 19 May 2022, replacing the National Health Insurance Scheme Act of 1999.

As of today, data shows that about 20 million Nigerians are covered by the scheme.

NHIA offers several benefits, including financial protection against high medical costs, access to quality healthcare services, and a comprehensive benefits package that covers a wide range of medical needs.

Also, the Pension Transitional Arrangement Directorate (PTAD) was established in 2013 and drawing its mandate from the Pension Reform Act of 2014, PTAD was tasked with consolidating and managing pensions under the Defined Benefit Scheme (DBS) for pensioners who retired on or before June 30, 2007 and did not transit to the Contributory Pension scheme.

PTAD has marked a significant milestone of revolutionizing Nigeria’s public sector pension administrative system.

When the Directorate was created, it inherited a host of challenges that had long plagued the legacy pension offices. These offices, comprising the Police, Customs, Immigration, Prisons, and the Civil Service, as well as the Boards of Trustees of Treasury funded Parastatals, Universities and Research Institutions and Agencies, were historically managed in a fragmented, inefficient, and underfunded manner. By 2004, this mismanagement had culminated in pension liabilities exceeding N2 trillion.

On the helm of affairs of the Directorate is the Executive Secretary, Tolulope Abiodun Odunaiya, a dynamic and results-oriented professional with a proven track record of managing complex workflows and consistently driving measurable outcomes. She was appointed to the position in November 2024, by President Bola Ahmed Tinubu.

Rite Foods Limited is the producer of Bigi Drinks, Fearless Energy Drinks, Sosa Fruit Drinks, and Rite and Bigi Sausage Rolls.

The company ably led by managing director/CEO, Mr. Seleem Adegunwa believes in the power of innovation and its potential to change the recycling business.

As Nigeria’s top food and beverage manufacturer, it said: “we are committed to helping recyclers to adopt cutting-edge techniques to recycling plastic trash, particularly in coastal areas, among other Corporate Social Responsibility (CSR) initiatives.”

MTN, 9mobile Ink National Infrastructure Partnership Deal

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L-R: Abolaji Idowu, Chief Financial Officer, 9mobile; Omotola Ojutayo, General Manager, Business Development, MTN; Lynda Saint Nwafor, Chief Enterprise Business Officer, MTN; Obafemi Banigbe, CEO, 9mobile, and Ayham Moussa, Chief Operating Officer, MTN at the Media Briefing to announce 9mobile and MTN National Roaming Partnership in Lagos.

In a landmark move set to redefine Nigeria’s telecom landscape, MTN Nigeria Communications Plc and Emerging Markets Telecommunications Services Limited (9mobile) have officially announced the rollout of their national roaming agreement, approved by the Nigerian Communications Commission (NCC).

The three-year agreement enables 9mobile subscribers to roam seamlessly on MTN Nigeria’s expansive network, significantly extending 9mobile’s coverage and improving service quality for its customers. The partnership signals a shift toward greater industry collaboration, aligning with the NCC’s vision for a more inclusive and efficient digital ecosystem.

Beyond infrastructure sharing, the agreement drives greater operational efficiency, stronger connectivity, and an enhanced user experience. It also paves the way for deeper collaboration between the two telcos, most notably a proposed spectrum leasing deal, in which 9mobile will lease its 900MHz (5MHz) and 1800MHz (15MHz) bands to MTN for three years, further strengthening MTN’s network capacity and service quality.

“This partnership marks a bold resurgence for 9mobile,” said Obafemi Banigbe, CEO of 9Mobile. “It empowers us to meet the needs of our customers, especially youthful and enterprise users, by delivering consistent, high-quality service as we roll out city by city in the weeks ahead.”

Banigbe acknowledged the leadership of Dr. Aminu Maida, Executive Vice Chairman and the leadership of the NCC, for enabling such progressive industry collaboration, and Dr. Bosun Tijani, Honourable Minister of Communications, Innovation, and Digital Economy, for his advocacy of a resource-efficient, consumer-first telecom ecosystem.

“In today’s telecom environment, access is more strategic than ownership,” Banigbe added. “Access to infrastructure is now more important than ownership,” Banigbe added. “Rather than duplicating networks, we’re investing in access that is commercially viable and sustainable. Network infrastructure typically accounts for 70–75% of an operator’s costs, savings here mean we can reinvest in innovation and customer experience. At 9mobile, our mantra is simple: build infrastructure where necessary, share it where possible,” he concluded”

Dr. Karl Toriola, CEO of MTN Nigeria, described the agreement as a milestone for the sector: “This collaboration underscores our commitment to industry innovation, customer-centricity, and support for the NCC’s goal of a fully connected Nigeria,” said Toriola. “It reflects our shared value philosophy, prioritizing partnerships that benefit the entire ecosystem.”

Toriola also praised Dr. Tijani’s efforts in promoting meaningful collaboration as a key driver of digital access, service quality, and nationwide inclusion.

This pioneering agreement sets a new benchmark for infrastructure sharing in Nigeria. It exemplifies how competitors can collaborate to address systemic challenges, reduce redundancies, and collectively transform the industry—ultimately delivering broader coverage, better service, and faster access to emerging technologies for Nigerian consumers.

 

Stanbic IBTC Holding’s N148bn Rights Issue Oversubscribed by 21.9%, Injects N140bn into Stanbic IBTC Bank

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Acting Group CE Statement

Commenting on the just concluded rights issue programme, the Acting Chief Executive of Stanbic IBTC Holdings Plc, Dr. Kunle Adedeji stated that after the completion of the verification exercise by the Central Bank of Nigeria and final clearance by the Securities and Exchange Commission, Stanbic IBTC Holdings Plc is announcing the successful close of the N148.7 billion Rights Issue subscription exercise.

The turnout and participation of existing shareholders taking up their rights was impressive such that the rights issue was over-subscribed by 21.9% to the tune of N181.4 billion. Our shareholders’ interest shows the confidence they continue to have in the brand.

“We appreciate the support of the Central Bank of Nigeria, The Securities and Exchange Commission, the Lead Issuing house, Joint Issuing houses and other stakeholders in the successful completion of the recapitalisation exercise.

We are optimistic about future opportunities, as the injection of new capital will position us to take advantage of them to enable us to deliver to our shareholders.

To all shareholders, we are grateful for your unwavering belief and support for the Stanbic IBTC Brand and your willingness to continue this journey with us.”

Having received an injection of N140 billion from the parent company, the Chief Executive of the Banking subsidiary, Mr. Wole Adeniyi, remarked that ‘the injection of the new capital into the banking subsidiary is a positive development. This will enable the Bank to seize additional opportunities within the industry and enhance our Single Obligor Limit (SOL). We deeply appreciate the dedication and hard work of our regulators, issuing houses, and all other stakeholders. We extend our sincere gratitude for your continued support.’

 

About Stanbic IBTC Holdings Plc

Stanbic IBTC Holdings is a member of Standard Bank Group. Standard Bank Group is Africa’s largest banking group ranked by assets and has been in business for over 162 years.

With a controlling stake of 68.46% in Stanbic IBTC Holdings Plc, Standard Bank Group employs over 50,000 people (including Liberty) worldwide; operates in 20 African countries including South Africa and has operations in five key financial centres outside Africa, including London, Sao Paulo, Dubai, New York, and Beijing. 

Stanbic IBTC Holdings’ strategy is to position itself as the leading end-to-end financial services solutions provider in Nigeria. The Group offers expert services in four business segments – Personal and Private Banking, Insurance and Asset Management, Business & Commercial Banking and Corporate and Investment Banking.

With a team of experienced and customer-focused staff, Stanbic IBTC offers services which include specialised finance, trade finance, stockbroking, trustee services, global markets, custodial services, foreign exchange, asset and pension management, insurance brokerage, life insurance, lending, savings, and investment products.

 

 

NAICOM Hands over New Licences to SanlamAllianz Life, General Insurance

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The National Insurance Commission (NAICOM) today handed over new licenses to SanlamAllianz Life and General Insurance Nigeria Limited in a brief ceremony held in Abuja.

Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, emphasised the Commission’s commitment to supporting the growth of insurance entities in the country, while ensuring strict compliance with regulatory requirements.

He urged the companies to prioritise good corporate governance, stability, and timely claims settlement processes.

The Commissioner reiterated NAICOM’s dedication to removing unnecessary bottlenecks and improving the insurance industry’s overall performance. He expressed confidence that the merger would enhance the companies’ capabilities and contribute to the industry’s growth.

Access Bank Highlights Leadership at Climate Governance Initiative Launch

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Access Bank Plc has once again demonstrated its leadership in sustainable finance with a strong showing at the launch of the Climate Governance Initiative Nigeria (CGIN) Chapter, hosted by Lagos Business School.

Dr. Greg Jobome, Executive Director, Risk Management at Access Bank, was specially invited to speak at the event in recognition of the Bank’s pioneering role in integrating sustainability into its business model and its inspiring leadership within Nigeria’s corporate landscape.

In his presentation, Jobome provided a comprehensive overview of how Access Bank has embedded climate risk considerations across its governance structure, operations, and financial decision-making processes. He noted that climate change is a standing agenda item at both Board and Executive Management levels, with dedicated policies and systems in place to monitor and manage its impact.

Access Bank operates in 24 countries and serves over 60 million customers, with more than 18.5 million digital banking users and over 800 branches. The Bank has a capital adequacy ratio of 20.46% for its banking group and maintains a broad international footprint, including branches in Paris and subsidiaries in Angola.

The Bank has implemented a range of climate-focused initiatives including the measurement and reporting of Scope 1, 2, and 3 emissions, adoption of the Partnership for Carbon Accounting Financials (PCAF) model for financed emissions, and application of global reporting frameworks such as Task Force on Climate-related Financial Disclosures (TCFD) and the recently launched International Financial Reporting Standard (IFRS) S1 and S2 standards.

To date, Access Bank has installed over 974 solar-powered ATMs, reduced paper usage by more than 72% through process automation, and achieved a 50% reduction in landfill waste at its headquarters through comprehensive recycling initiatives. Its Sustainable Finance Accelerator programme has supported numerous businesses in the climate space, providing funding, capacity building, and technical assistance. The bank has also reached over 63 million lives through social investments.

Dr. Jobome stated that climate considerations are integrated into credit approvals, capital expenditure planning, and the development of green financial products. These include offerings like Switch to Solar, Solar for Health, and mini-grid solutions targeted at supporting energy transition and low-carbon growth.

Access Bank has also issued Green and Sustainability Bonds and is the first commercial bank in Africa to be certified by the Sustainability Standards and Certification Initiative. Over the years, the Bank has received several recognitions including the World Finance Award for Most Sustainable Bank in Nigeria (twelve consecutive times), Euromoney’s Best Bank for ESG (Ghana), and the IFC’s Best Trade Partner in West Africa.

“Access Bank’s climate risk journey reflects a long-standing commitment to building a sustainable institution,” Jobome said. “We recognised early that climate risk is financial risk. We did not wait for regulation; instead, we acted proactively. That decision has made our institution more resilient and positioned us to unlock new growth opportunities.”

Dr. Jobome was invited to speak because Access Bank’s journey in building a sustainable organisation and leading the Nigerian corporate landscape has been truly inspiring. The Bank’s proactive stance, deep expertise, and results-driven implementation have made it a model for other financial institutions in Nigeria and across Africa.

The Climate Governance Initiative Nigeria Chapter was formally launched by Lagos Business School as part of the World Economic Forum’s global network to promote climate-conscious decision-making in corporate boardrooms.

The event brought together board members, C-suite executives, regulators, and sustainability experts to strengthen climate governance and drive corporate responsibility in addressing climate change.

 

Fidelity Bank Extends Relief Efforts to Eti-Osa Community with Food Bank Initiative

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Henry Asiegbu, Divisional Head, Operations, Fidelity Bank Plc (Left); Adebayo Adeyinka, Executive Technical Assistant to the Managing Director/Chief Executive Officer, Fidelity Bank Plc (5th from Left); Meksley Nwagboh, Divisional Head, Brand and Communications, Fidelity Bank Plc (Right); flanked by some of the beneficiaries at the Fidelity Food Bank outreach in Eti Osa Local Government Area, Lagos recently.

As part of its unwavering commitment to reducing food insecurity and supporting vulnerable communities, Fidelity Bank Plc, a leading financial institution, has distributed food packs to residents of Victoria Island in the Eti-Osa Local Government Area of Lagos as part of its nationwide Fidelity Food Bank initiative.

This initiative, which attracted beneficiaries from diverse backgrounds, forms a key pillar of the bank’s Corporate Social Responsibility (CSR) strategy and reinforces its dedication to driving meaningful impact across Nigerian communities.

Speaking during the distribution event, Mr. Adebayo Adeyinka, Executive Technical Assistant to the Managing Director/CEO of Fidelity Bank Plc, emphasised the long-term impact of the initiative. “The Fidelity Food Bank was established to address the pressing challenges of poverty, hunger, malnutrition, and infant and maternal mortality within our communities,” he said.

“It aligns with Goal No. 2 of the United Nations Sustainable Development Goals – Zero Hunger – and reflects our long-term commitment to improving lives across the country. From IDP camps to flood-affected regions like Niger State, this is a nationwide outreach that we are proud to continue,” Adeyinka added.

Also present at the event was the Divisional Head, Operations, Fidelity Bank Plc, Mr. Henry Asiegbu, who highlighted the growing support and impact of the program.

“This intervention has been positively received at all levels – from community members to government and partner organisations,” he noted. “The support has been overwhelming, and it encourages us to sustain and expand the initiative further.”

For many of the community members, the gesture offered more than just nourishment – it restored dignity and hope. Victoria Olubiyo, resident and representative of the members of the community, expressed her gratitude, saying, “Fidelity Bank has brought joy to our lives. Even during the no-cash crisis, their ATMs were always working. They’ve provided boreholes, fulfilled their promises, and shown genuine care. Today, people – men, women, children, even those living with disabilities – are supported. I urge other banks to follow their example.”

Another beneficiary, Jerome Igbe, echoed this sentiment, saying: “This means so much to struggling families. I honestly didn’t expect this kind of support. May God bless them and replenish their resources.”

Through initiatives like the Fidelity Food Bank, the bank continues to demonstrate its role as a socially responsible corporate organisation committed to impacting Nigerians positively.

Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.

The Bank is a recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine.

Additionally, the Bank was recognised as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.

Union Bank Strengthens Sustainability Leadership with Symposium, School Recycle Bin Donations on World Environment Day 2025 

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Union Bank of Nigeria Plc, a leading advocate for environmental sustainability and ESG in Africa, marked World Environment Day 2025 by partnering with the Nigerian Conservation Foundation (NCF) to host a high-impact symposium themed “Ending Plastic Pollution” at the Lekki Conservation Centre, Lagos.

The event brought together corporate leaders, environmental experts, and stakeholders to address the urgent challenge of plastic pollution and champion innovative solutions for a cleaner future.

The symposium featured thought-provoking discussions on the environmental and economic risks posed by plastic waste.

Speaking at the event, Union Bank’s Chief Brand and Marketing Officer, Olufunmilola Aluko, said: “At Union Bank, sustainability goes beyond banking. We are dedicated to empowering communities with knowledge and resources, like recycling initiatives to tackle plastic pollution and rejuvenate our environment.”

In line with this commitment, Union Bank extended its impact through an educational outreach in Lagos secondary schools, donating recycling bins and raising awareness about environmental preservation among young Nigerians.

These efforts are part of the bank’s broader UnionCares platform, which drives impactful Corporate Social Responsibility (CSR) initiatives across Nigeria.

The bank remains steadfast in promoting ethical business practices, social responsibility, and sustainable community development.

About Union Bank Plc:

Founded in 1917, Union Bank is a pioneer in the Nigerian financial industry, renowned for its “Simpler, Smarter Banking” and unwavering commitment to empowering individuals, businesses, and communities through innovative solutions and sustainable initiatives.

The Bank is a trusted and recognisable brand with an extensive network of over 300 branches across Nigeria. The Bank offers various banking services to individual and corporate clients, including current, savings, and deposit account services, funds transfer, foreign currency domiciliation, loans, overdrafts, equipment leasing, and trade finance.

The Bank also offers customers convenient electronic banking channels and products, including Online Banking, Mobile Banking, Debit Cards, ATMs, and POS Systems.

Stanbic IBTC Bank Wins GTR Award for Best Trade Finance Bank in West Africa

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Stanbic IBTC Bank has been honoured with the Best Trade Finance Bank in West Africa award at the Global Trade Review (GTR) Awards in London on June 26, 2025.

This award recognises the bank’s exceptional performance in trade finance and its commitment to delivering innovative solutions.

The GTR (Global Trade Review) Leaders in Trade Awards recognise excellence in global trade, commodity, supply chain, export finance, and fintech sectors. The GTR hosts these annual awards to honour institutions that have demonstrated exceptional performance and innovation in their respective fields. Securing the Best Trade Finance Bank award highlights Stanbic IBTC Bank’s strong market position and reinforces the Bank’s commitment to delivering exceptional services.

Commenting on the award, Eric Fajemisin, Executive Director of Corporate and Transaction Banking, Stanbic IBTC Bank, emphasised the importance of trade finance in fostering economic development: “Trade finance is vital for the growth and sustainability of businesses, especially in emerging markets. This award is a recognition of our efforts to empower businesses and contribute to the overall economic progress of West Africa. We remain focused on enhancing our service offerings and supporting our clients in achieving their trade objectives and beyond”.

The recognition at the GTR Awards underscores Stanbic IBTC Bank’s leadership and expertise in trade financing solutions, positioning the bank as a vital partner in promoting international trade across West Africa. The bank’s ongoing commitment to innovation and customer-centric solutions continues to drive its success in the competitive trade finance landscape.

Jesuseun Fatoyinbo, Head, Transaction Banking, Stanbic IBTC Bank, shared insights on the significance of the recognition: “This Award of Best Trade Finance Bank in West Africa is not only an honour but a responsibility. It reinforces our role as a leader in the market, committed to enhancing trade capabilities for businesses in the region. We understand the challenges that our clients face in navigating global trade, and we will continue to innovate and provide the partnership they need to succeed. This recognition inspires us to stay at the top and maintain our commitment to excellence.”

Ryan Stokes, Head, Transaction Banking, International, Standard Bank Group, received the award on behalf of the Bank.

As Stanbic IBTC Bank forges ahead, the focus remains on leveraging technology and developing new strategies to meet the evolving needs of clients, ensuring that businesses in the region can thrive in the global marketplace.

 

 

Leadway Health HMO Reinforces Industry Leadership with Third Straight HMO of the Year Award

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Dr. Tokunbo Alli

Chief Executive Officer

Leadway Health HMO

Leadway Health HMO, one of Nigeria’s premier health insurers, has been honoured with the Health Maintenance Organisation (HMO) of the Year award at the Nigerian Healthcare Excellence Awards (NHEA) for an unprecedented third consecutive year.

This unparalleled three-peat achievement affirms Leadway Health HMO’s position as a consistent leader in delivering innovative, accessible, and customer-focused healthcare solutions across Nigeria. Leadway Health HMO set a new record, one that has never been achieved in the 15-year history of the NHEAwards. The award, presented at a ceremony in Lagos on Friday, June 27, 2025, celebrates the organisation’s excellence in service delivery, technology integration, unmatched service delivery, and its expanding provider network.

Speaking on this achievement on a three-year streak, Chief Executive Officer, Leadway Health HMO, Dr. Tokunbo Alli stated: “Receiving the HMO of the Year award for the third consecutive year is a deeply meaningful milestone for us at Leadway Health HMO. It is more than an accolade; it is a resounding validation of our commitment to transforming healthcare delivery in Nigeria, Africa, and the world at large.

“In a country where fewer than one in ten people have access to health insurance, we recognise the immense responsibility we carry. Through our investment in digital innovation, operational efficiency, and inclusive health plans, we are not only improving access to quality care but also setting new benchmarks for service excellence within the industry. This recognition reflects the trust our customers place in us and the unwavering dedication of our team and partners who make our vision a reality every day.”

Dr Alli added, “We will continue to scale our hospital partnerships, enhance claims transparency, and leverage technology to deliver even more accessible, affordable, and customer-centric healthcare solutions. This award strengthens our resolve to be at the forefront of Nigeria’s health transformation journey—driving meaningful change, one life at a time.”

Leadway Health HMO’s triple win comes at a time when trust and performance in the HMO sector are under scrutiny. With a growing population, rising healthcare costs, and a national goal of achieving Universal Health Coverage (UHC) by 2030, the company’s performance positions it as a crucial stakeholder in driving Nigeria’s health transformation agenda.

The Nigerian Healthcare Excellence Awards, founded in 2014 by Global Health Project and Resources in collaboration with Anadach Group USA, is the industry’s most respected recognition platform. This year’s edition was themed Collaborating for Impact: Strengthening Health Systems through the SWAP Approach”, emphasising unified efforts to drive change.

 

About Leadway Health HMO

Leadway Health HMO is a leading Health Maintenance Organisation (HMO) in Nigeria, dedicated to providing comprehensive and innovative healthcare solutions.

Established with a mission to improve healthcare accessibility and outcomes, Leadway Health HMO offers a range of health plans tailored to meet the diverse needs of individuals, families, and organisations.

 

 

Unity Bank Empowers Young Entrepreneurs with ₦16m Business Grant

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No fewer than 30 young entrepreneurs have been awarded a ₦16 million business grant by Unity Bank Plc during the latest edition of its flagship entrepreneurship development initiative, the Corpreneurship Challenge.

The winners, budding entrepreneurs developing innovative solutions across various business value chains including fashion design, bag making, pastry making, event management, beauty, vegetable farming, and more, emerged tops after participating in a business pitch competition held recently for Batch A Stream 2 across 10 NYSC Orientation Camps in Cross River, Niger, Abuja, Nasarawa, Taraba, Kaduna, Plateau, Jigawa, Anambra, and Lagos States.

At the NYSC Orientation Camp in Ipaja, Lagos State, corps member Adeniyi Stephen Gbemininyi, who pitched a fashion design business, emerged as the overall winner, clinching the ₦800,000 grand prize. Kolawole Opeoluwa Darasimi, a budding bag maker, won a ₦500,000 grant, while Johnson Elizabeth Ene received a ₦300,000 grant to support her cake and pastry business.

Across the remaining nine states, 27 other winners also emerged after pitching business plans in diverse sectors such as fish production, poultry farming, fashion, soap and cake making, printing, piggery, beverage production, and more.

Over the past six years, the Unity Bank Corpreneurship Challenge has become an integral part of the NYSC programme, aligning with the Federal Government’s commitment to upskilling fresh graduates amid the growing dearth of white-collar jobs. The programme attracts thousands of applications from serving NYSC corps members, whose business plans are evaluated for originality, marketability, employability potential, and overall business acumen.

Speaking during the grand finale in Lagos, Unity Bank’s Divisional Head, Retail & SME, Mrs. Adenike Abimbola, said: At Unity Bank, we believe that empowering young people to shape Nigeria’s economic future must be supported to provide longer-term sustainability. Through the Corpreneurship Challenge, we are not just providing funding, but nurturing a new generation of entrepreneurs equipped with the skills, resources, and confidence to create jobs and transform communities. The success stories we see year after year reaffirm our commitment to youth empowerment and SME development.”

She added: The overwhelming interest and high quality of business ideas we receive in every edition demonstrate the incredible potential among Nigeria’s youth. We are proud to partner with the NYSC SAED to make these dreams a reality.”

The Corpreneurship Challenge has earned Unity Bank national recognition for its contribution to youth empowerment and job creation, attracting over 2,000 applicants per edition.

In partnership with the NYSC Skill Acquisition and Entrepreneurship Development (SAED) programme, the initiative features a business pitch competition that allows participants to present their business plans and win grants of up to ₦800,000.

So far, Unity Bank has invested over ₦100 million in the initiative, producing over 160 winners since its launch in 2019.

 

NGX Group Secures Funding Support from DEG Impulse to Kick Off N-Zero Programme in Nigeria

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Nigerian Exchange Group (NGX Group), a leading integrated market infrastructure provider in Africa, has signed a funding agreement with DEG Impulse gGmbH, a subsidiary of the German Development Finance Institution, DEG – Deutsche Investitions-und Entwicklungsgesellschaft mbH, part of KfW Bankengruppe, to commence the implementation of its flagship NGX Net-Zero Programme (N-Zero).

The recently signed agreement in Cologne, Germany, marks a major step forward in NGX Group’s efforts to strengthen climate resilience and promote low-carbon development across Nigeria’s private sector. The multi-billion-naira funding was secured under DEG Impulse’s develoPPP programme, which supports innovative private sector initiatives with high development impact.

N-Zero is designed to support businesses with the tools, frameworks, and technical guidance required to set, validate, and achieve science-based emission reduction targets. It aligns with Nigeria’s commitment to the Paris Agreement and the global goal of limiting temperature rise to 1.5°C.

By bringing together global climate partners, including implementing partner Africa Foresight Group (AFG), NGX Group, through N-Zero, will assist companies in developing credible transition plans and carbon projects that generate verifiable carbon credits, thereby supporting economic resilience, promoting green investments, and contributing to a decarbonized future.

Temi Popoola, Group Managing Director/Chief Executive Officer of NGX Group, said:
“The signing of this agreement with DEG Impulse marks a significant milestone in our sustainability journey. This partnership demonstrates strong confidence in our vision to drive sustainable finance, build a climate-conscious private sector in Nigeria and champion climate action across Africa. Through N-Zero, we aim to translate ambition into measurable impact by reducing emissions and positioning Nigerian corporates to benefit from emerging opportunities in the global carbon market.”

Alhaji (Dr.) Umaru Kwairanga, Group Chairman of NGX Group, added:
“This initiative represents a bold step toward positioning NGX Group at the forefront of climate leadership in Africa. As we activate the N-Zero Programme, we reaffirm our long-standing commitment to innovation, sustainable development, and creating long-term value for the Nigerian economy. It is our firm belief that capital markets must play a central role in delivering climate solutions, and this partnership is a model for what is possible when global institutions collaborate with local expertise”.

Dr. Hubertus Pleister, Managing Director of DEG Impulse, commented: “With the support of the German Federal Ministry of Economic Cooperation and Development (BMZ), the develoPPP initiative contributes to NGX’ transformation journey by addressing climate risks and advancing sustainability through strategic and innovative collaboration – reinforcing our shared commitment to building resilient capital markets and enabling long-term impact.”

The “NGX’ N-Zero Programme” will run from June 2025 to April 2027 and is expected to reduce or avoid 20,000 tons of greenhouse gas emissions. It will support at least 26 businesses in implementing environmental and social standards and provide access to carbon markets through credit registration and emissions offsetting.

This collaboration underscores NGX Group’s commitment to the United Nations Sustainable Development Goal 13 (Climate Action) and its role in advancing Nigeria’s transition to a more sustainable and inclusive economy.

 

Stanbic IBTC Bank Nigeria PMI: Output Growth Slows but Business Confidence Rises Sharply

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The Nigerian private sector remained in growth territory as the first half of 2025 drew to a close, and business confidence improved markedly in June.

That said, rates of expansion in output, new orders and purchasing eased from May. Although rates of inflation remained relatively sharp, there were further signs of cost pressures softening and companies raised their output prices at the slowest pace in just over two years.

The headline figure derived from the survey is the Stanbic IBTC Purchasing Managers’ Index (PMI). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

The headline PMI remained above the 50.0 no-change mark for the seventh consecutive month in June. That said, at 51.6, the reading was down from 52.7 in May and the lowest in the current growth sequence. The PMI signalled a modest improvement in business conditions in the private sector.

The rate of output growth eased particularly sharply, slowing for the second month running to a seven-month low. Sector data indicated that the slowdown in the pace of expansion reflected a fall in manufacturing production as activity continued to rise elsewhere. Where output rose, respondents linked this to higher new orders and the securing of new customers.

Indeed, new business increased solidly in June, albeit here too the pace of expansion slowed and was at a five-month low. While the pace of output growth eased in June, companies were much more optimistic about the outlook for the coming year.

Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank commented: “Business conditions remain in the expansionary territory for the seventh consecutive month in June, but the pace of expansion slowed for the third consecutive month after peaking in March. Specifically, the headline PMI settled lower at 51.6 points in June from 52.7 points in May – below this year’s average PMI print of 53.1 points. Some firms noted muted demand conditions in June, while others witnessed higher activity linked to securing new customers and greater new orders. Nonetheless, Optimism in the 12-month outlook for output surged higher to 83.9 points in June from 70.9 in May – the highest level since August 2022 (85.8 points) and moving much closer to the series average (89.4 points) after a period of historically subdued expectations. Survey participants linked this confidence to hopes that sufficient funding would be available to invest in improving and expanding operations. Elsewhere, output price inflation slowed for the second month running in June and was the weakest since May 2023. However, selling prices continued to rise sharply as firms passed on higher input costs to customers.”

Manufacturing posted the fastest increase in output prices of the four broad sectors covered by the report. The employment level was broadly stable in June as companies that took on extra staff often did so to try to keep on top of workloads.

That said, muted demand and cost pressures discouraged other firms from hiring. Insights from the monthly PMIs and crude oil production data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) suggests an economy that grew by an estimated 3.7% y/y in H1:25 supported by higher crude oil production and growth improvement across Manufacturing and Services, while Agriculture continues to lag its long-term average growth rate of 3.6%.

Given that inflation is expected to remain softer compared to the 2024 average, interest rates are likely to be lower this year and next – we expect 150/200 bps rate cut in 2025 and 200/250 bps rate cut in 2026. These, in addition to structural reforms, removal of previous protectionist policies, and subsiding impact of the government’s flagship reforms should help to support the medium-term economic growth path. Therefore, we still maintain our expectation that the Nigerian economy is likely to grow by 3.5% y/y in real terms in 2025, but post-GDP rebasing may amplify this growth to 4.2% y/y.”

Sentiment improved to the highest since August 2022 and moved closer to the series average after a period of relatively weak optimism. Those respondents that predicted a rise in activity over the next 12 months linked this to planned investment in improving and expanding operations. Staffing levels were kept broadly stable in June following a marginal reduction in May. Meanwhile, purchasing activity continued to rise, but as was the case with output the pace of expansion slowed. This fed through to a weaker rise in inventories, which increased at the slowest pace in the current seven-month sequence of accumulation. Backlogs of work increased for the third consecutive month, and at a modest pace that was broadly in line with that seen in May.

Panellists linked higher outstanding business to shortages of materials, delayed payments from customers and power supply issues. Suppliers’ delivery times were broadly unchanged in June, ending a period of shorter lead times stretching back to March 2023.

Some firms noted that poor road conditions had caused delays. Purchase costs increased sharply in June, but the pace of inflation eased to a 25-month low. On the other hand, staff costs increased at a faster pace. With overall input price inflation slowing, companies also raised their output charges at a weaker rate, the softest since May 2023.