The start of the second quarter of 2025 saw a further improvement in business conditions among Nigerian companies amid strengthening customer demand and growth of output.

In response, firms ramped up their purchasing activity and took on extra staff, but this expansion of capacity was not sufficient to prevent a build-up of backlogs of work.

Meanwhile, inflationary pressures ticked up from March but remained muted relative to the picture in 2024. 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.

Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank commented: “Nigeria’s private sector business activity maintained its positive momentum into the start of the second quarter of the year as the PMI settled at 54.2 in April – broadly in line with 54.3 recorded in March.

This latest improvement in business activity was primarily due to improved customer demand amid softening inflationary pressures, helping to support higher new orders.

Accordingly, all the four monitored sectors posted an improvement in business activity with the most significant improvement seen in the Services sector. In line with this improvement, the employment level increased for the fifth consecutive month, although the pace of increase was modest this time. Elsewhere, inflationary pressures continue to soften relative to 2024 as factors that significantly drove prices upward last year have moderated so far this year in terms of impacts.

Nonetheless, inflation increased in April compared to March, exacerbated by the impact of local currency depreciation and higher energy costs. Indeed, overall input prices increased across all the four monitored sectors with the Manufacturing sector witnessing the strongest inflationary pressures of the month.

The pass through of the higher input costs to customers meant that output price inflation also quickened in April but remained among the weakest in the past two years. Nigeria’s business conditions started Q2:25 on a positive note, and we expect this trend to be maintained, albeit relatively slower than witnessed in Q1:25.

This is as the local currency is expected to depreciate in Q2:25 compared to Q1:25 amid the lingering global uncertainties. This could also lead to slightly higher inflation rate than seen in Q1:25 but still expected to remain softer compared to the 2024 average.

Nonetheless, interest rates are likely to be lower this year amid moderate inflationary pressures, thereby helping to support economic growth over the medium term. Overall, we still maintain our expectation that the Nigerian economy is likely to grow by 3.5% y/y in real terms in 2025 relative to 3.4% y/y growth in 2024.”

The headline PMI posted above the 50.0 no-change mark for the fifth consecutive month in April. At 54.2, the PMI was broadly in line with the 54.3 posted in March and pointed to a solid monthly improvement in business conditions.

Output increased at a sharp and accelerated pace in April, with the rate of expansion the most pronounced since January 2024. All four broad sectors saw business activity rise, with the sharpest growth in services.

Higher new orders and increased customer numbers were among the factors mentioned by respondents as having supported growth of output. New orders rose sharply as demand conditions strengthened, with the pace of expansion little-changed from that seen in March. In line with the picture for output, employment increased for the fifth consecutive month in April as firms responded to greater workloads and made efforts to complete orders on time. Although modest, the pace of job creation was at an eight-month high.

A desire to keep on top of orders was also behind a rapid increase in purchasing activity, with the pace of growth quickening to the fastest since February 2022. Stocks of purchases were also accumulated during the month. Despite efforts to complete orders in a timely manner, companies saw backlogs of work increase in April.

The accumulation was the first in 11 months, albeit modest. High costs for materials in some cases meant that firms weren’t always able to secure the necessary inputs for projects, while other respondents mentioned that power outages had caused delays. Purchase costs continued to rise sharply amid higher raw material prices and currency weakness.

The pace of inflation was faster than in March, albeit still one of the slowest over the past two years. Staff costs rose at a solid pace. The pass-through of higher input costs to customers meant that output prices also increased, with inflation here too slightly stronger than in March.

Companies remained optimistic that output will rise over the coming year, but sentiment dipped for the third consecutive month. Confidence often reflected business expansion and investment plans.

The Managing Director of Unity Bank Plc, Mr. Ebenezer Kolawole, (Centre right), flanked by some members of the Bank’s Senior Executives, and a cross section of students at the launch of Genfi in Lagos

In a bold move to redefine promotion of financial literacy, Nigeria’s retail lender, Unity Bank Plc, has unveiled GenFi, a new digital banking platform tailored to empower kids and teenagers between the ages of 8 and 18 with essential financial skills.

The launch follows a report by the Central Bank of Nigeria, which found that only 38% of Nigerian adults are financially literate. This alarming statistic underlines the urgent need for early financial education.

GenFi, therefore, aims to reverse this trend by offering young users the platform to manage money effectively, aggregate and track allowances or income, set and achieve savings goals, and develop smart spending habits with parental guidance.

Speaking at the official launch event in Lagos, the Managing Director/Chief Executive Officer (Ag) of Unity Bank Plc, Mr. Ebenezer Kolawole, said the launch of the Genfi App represents a significant milestone since Unity Bank’s foray into retail Banking started several years ago, adding that “as the Bank continues to evolve, the institution is constantly innovating with technology to enable us drive more financial inclusiveness in different segments of the market”.

Mr. Kolawole explained that Genfi was inspired by the desire to nurture a financially savvy generation, and empower them to make smarter financial choices.

He said, “GenFi is short for Generation Finance, and with this app, the Bank is pioneering solution designed to empower Children, Teenagers, particularly Gen Z and Gen Alpha, with essential financial literacy skills and a Personal Finance Management Solution.

“GenFi is a market proposition that helps us address a critical knowledge gap among our kids and Teens as it also connects with the strong passion of parents desirous to empower their wards with financial literacy.”

Similarly, the Divisional Head of Retail and SME Banking at Unity Bank, Mrs. Adenike Abimbola, described GenFi as a financial product that goes beyond Banking: hence a financial literacy ecosystem designed to inculcate financial literacy skills amongst Nigerian Children through an engaging and gamified platform.

“Financial literacy is not a luxury. It’s a life skill. And like most life skills, the best time to learn is from childhood. That’s why we created GenFi, not just as a banking app, but as an interactive experience that nurtures discipline, planning, and financial independence from an early age,” Abimbola explained.

The Genfi platform leverages behavioural science and gamification to make financial learning fun and practical. Parents can monitor transactions, guide financial behaviours, and initiate real-life conversations around money management, thereby promoting not just financial skills, but also stronger family bonds.

“Imagine a 12-year-old setting a goal to save for a bicycle, not only are they learning to save, but they are also learning patience, discipline, and the value of delayed gratification. That’s the GenFi advantage,” said Abimbola.

Speaking after the launch, one of the students who attended the launch event, Master Ajayi Favour of Victoria Island Junior Secondary School, described Genfi as an “innovative banking solution that will equip children and teenagers with financial intelligence, management, and independence.” He expressed confidence that the app will gain global reach and become popular among the target demographics.

Also, a guest at the launch and school proprietor, Sylvia Ezeora, described the Genfi app as “user-friendly, educational, and motivational for children”. She noted that beyond teaching financial literacy, “the app empowers parents to reinforce positive behaviour through rewards for completed tasks and promotes responsibility”.

Another guest and parent, Genevieve Adindu, commended Unity Bank for the innovative solution, tailored for children aged 8 to 18, and noted that Genfi “provides a modern, engaging approach to instilling saving habits early in life, replacing traditional methods like the kolo with a more effective digital tool, thereby becoming a powerful companion for children’s financial education”.

GenFi is positioned as a national benchmark for youth-focused digital banking, with the potential to drive economic inclusion and sustainability across generations. The launch event was attended by key stakeholders from the education and finance sectors, technology partners, media, and young students who will be among the early adopters.

Stanbic IBTC Bank has successfully concluded its strategic participation at GTR West Africa 2025, reinforcing its commitment to advancing trade finance solutions and digital innovation across the region. The two-day conference, held at the Eko Convention Centre in Lagos on 24-25 April 2025, brought together over 400 delegates from more than 200 companies to address critical challenges and opportunities in Nigeria and beyond.

As a key event sponsor, Stanbic IBTC Bank showcased its comprehensive suite of trade finance solutions to help businesses navigate global trade realignments while capitalising on emerging opportunities within the African Continental Free Trade Area (AfCFTA).

Speaking on the event, Jesuseun Fatoyinbo, Head, Transaction Banking, Stanbic IBTC Bank, emphasised that the GTR West Africa 2025 indicates that digital transformation is now essential for maintaining market access and staying competitive. “We are committed to bridging the digital divide through our advanced trade platforms that eliminate friction points and enable businesses of all sizes to participate effectively in global and regional trade.”

Stanbic IBTC Bank’s delegation made significant contributions to the conference agenda, with senior executives participating in high-profile panel discussions. Ojinika Shote, Head, Sales, Transaction Banking, shared valuable insights on operational efficiency during the ‘Stripping out cost’ panel, highlighting innovative approaches to reducing trade finance expenses.

Adewale Adekoya, Manager, Trade Products, Transaction Banking, lent his expertise to the ‘$1 trillion food economy’ discussion, addressing the region’s financial solutions for agricultural trade and food security challenges.

Commenting on the event, Eric Fajemisin, Executive Director, Corporate and Investment Banking, Stanbic IBTC Bank, emphasised the bank’s strategic vision: “Despite global uncertainties, West Africa holds enormous potential as the continent’s trade epicentre. We focus on developing tailored financial solutions that help businesses transform challenges into opportunities while promoting sustainable economic growth across the region.”

The conference underscored several priorities that align with Stanbic IBTC Bank’s strategic direction, including accelerating digital adoption across trade ecosystems, expanding access to trade finance for SMEs, developing innovative solutions for intra-African trade, and embedding sustainability principles in trade finance products.

“The insights gained at GTR West Africa 2025 will further enhance our ability to support clients through an evolving trade landscape. “We are particularly focused on helping businesses leverage the AfCFTA framework to expand their regional footprint while ensuring they can meet increasingly digital requirements in global markets,” added Fatoyinbo.

Stanbic IBTC Bank continues to invest in cutting-edge digital infrastructure and specialised expertise to maintain its position as a leading trade finance partner in West Africa, supporting businesses across various sectors, including agriculture, manufacturing, and energy.

A liquidation dividend represents amount paid by the Corporation to depositors of a closed bank, in excess of the maximum insured limit, from the proceeds of sales of assets and recovery from the debtors of the failed bank. It also includes amounts paid to creditors and shareholders after all depositors have been fully paid.

In its continued commitment to ensuring that depositors of the defunct Heritage Bank are fully reimbursed, the Nigeria Deposit Insurance Corporation (NDIC) has declared first tranche of liquidation dividends totaling ₦46.6 billion from the proceeds of sales of the defunct bank’s assets and recovery of debts owed to the defunct institution.

The payment of the first tranche of the liquidation dividends commenced on Friday April 25, 2025. This initial dividend payment was at the rate of 9.2 kobo per Naira on a pro-rata basis to the depositors whose account balances exceeded the NDIC’s maximum insured limit of ₦5.0 million as at the time of the bank’s closure.

It will be recalled that following the revocation of the Heritage Bank’s operating license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC promptly began reimbursing insured deposits of up to N5 million per depositor.

To ensure seamless and efficient payment process, the NDIC used the depositors’ Bank Verification Number (BVN) to locate alternate account number of depositors in other banks and automatically credited them with the insured amount.

Furthermore, the Corporation leveraged the existing records used in the payment of the insured amount to facilitate the disbursement of first tranche of liquidation dividends. Consequently, any depositor with amount in excess of N5.0 million who was paid insured amount but did not receive the payment the liquidation dividends should approach the nearest NDIC office or contact us on the telephone numbers below.

In the Meantime, depositors of the defunct banks who do not maintain alternative bank account and were not paid the insured amount, are advised to visit the nearest NDIC office or go to the claims page on the Corporation’s website, www.ndic.gov.ng to download, complete and submit deposit verification form for the payment of the insured amount and where applicable, the first tranche of their liquidation dividends.

The Corporation wishes to reassure public that this payment represents only the first tranche of liquidation dividends.

Further payments will follow as more assets of the defunct Heritage Bank are realized and outstanding debts are recovered. The NDIC remains committed to its vigorous efforts in assets recovery and ensuring all eligible depositors are reimbursed.