E-Financial
BCG’s Report Links Nigeria’s Long-Term Success to Infrastructure Investments
Improving Nigeria’s infrastructure through prioritized investments will help to secure its long-term success as Africa’s largest economy, according to a new report by The Boston Consulting Group (BCG).
Unlocking Nigeria’s Potential: The Path to Well-Being is being released and coincides with the opening of BCG’s new office in Lagos this week.
The report identifies infrastructure, education, health, governance, and civil society as areas that require immediate attention, and outlines the root causes of these challenges and a series of actions that can drive meaningful progress. The most critical focus, the report says, must be addressing Nigeria’s weak infrastructure—doing so will enable the country to make much-needed progress in the other key areas and diversify sources of foreign exchange.
Luis Gravito, senior partner and chairman of BCG’s Lagos office and a coauthor of the report, said, “Economic pressure, including low oil prices, a possible recession, and a declining naira, make it imperative that the country move quickly to address major gaps—and infrastructure should be priority one. Swift and disciplined action will allow Nigeria to fully harness its vast resources and potential, most notably its vibrant and entrepreneurial population.”
The value of Nigeria’s infrastructure stock is about 35% of GDP, compared with an average of about 70% for large economies.
A key reason for the shortfall: Nigeria invested just $664 per capita (adjusted for purchasing-power parity) in infrastructure annually from 2009 to 2013, or 3% of GDP, compared with an average of $3,060, or 5% of GDP, for several peer countries. Without decisive intervention, that gap is likely to widen.
Dr. Wiebe Boer, a Principal in the Lagos office and a coauthor of the report, said, “Nigeria must address major gaps, from the power generation, transmission and distribution network, to roads and railway, sanitation systems, and technology infrastructure. These issues have major ripple effects, including impacts on health and on the country’s ability to diversify its economy, expand its pool of tradable goods, and create badly needed jobs.”
The report outlines five concrete actions to address the infrastructure issues: establishment of a central body empowered to oversee and direct the entire life cycle of infrastructure investments; the identification of ten high-priority infrastructure projects; international road shows by the government to line up private funding, including foreign direct investment, for those projects; initiatives to ensure flawless execution of the ten projects in order to generate early wins; and leveraging momentum to launch a sustained infrastructure-building drive.
The report bases its analysis on BCG’s Sustainable Economic Development Assessment (SEDA), the firm’s globally recognized diagnostic tool for evaluating the relative well-being (the standard of living) of countries around the world, and on interviews with Nigerian executives in sectors such as energy, banking, and telecommunications. Nigeria ranks 142nd out of the 149 countries in the SEDA data set when it comes to converting wealth (as measured by GDP per capita) into well-being, putting the country just ahead of Libya and Angola and behind Swaziland and Pakistan.
Hans-Paul Bürkner, chairman of BCG, attending the launch of BCG’s new office this week, commented, “Nigeria’s challenges are significant—but they are more than matched by the talent and entrepreneurial drive of its people. However, the Nigerian people need better infrastructure, health, education, and institutions to be able to translate their energy and drive into prosperous personal lives and a prosperous society. The opening of BCG’s office in Lagos in spite of the current economic climate reflects our confidence in Nigeria’s future and our commitment to playing a role in the country’s long-term success.”
In addition to concrete recommendations to improve Nigeria’s infrastructure, the report offers comprehensive actions to improve governance, civil society, education, and health. The interventions focus on establishing clear priorities, developing detailed plans, monitoring execution, creating links between implementers and decision makers, communicating effectively to all stakeholders, and leveraging partnerships with public and private organizations.
Action must be swift, the authors note, but disciplined and sustained effort can yield real progress—and increase the well-being of all Nigerians.
The next currency crisis could accelerate the shift of the roughly $315 billion global stablecoin market into a digital-dollar alternative for citizens in emerging economies, notably in regions like sub-Saharan Africa and Latin America.
As local fiat currencies face devaluation and high inflation, citizens and businesses are increasingly utilizing smartphone-based stablecoins (such as USDT and USDC) as hedges and primary mediums of exchange.
According to the International Monetary Fund (IMF), the rapid adoption of dollar-linked digital assets—particularly in countries heavily affected by inflation like Nigeria—poses significant risks to monetary sovereignty.
With up to 95% of surveyed individuals in some African markets preferring to receive payments in stablecoins over local fiat, the rising volume of these decentralized, cross-border channels weakens domestic currency demand and dilutes the effectiveness of local monetary policy.
IMF observed in a report titled “Stablecoins in Nigeria: A Growing Cross-Border Channel” noted that the widespread use of stablecoins poses risks to monetary sovereignty, particularly as more individuals and businesses turn to digital dollar-linked assets for savings and transactions.
Nodding in agreement is Future Investment Initiative Institute (FII Institute), a non-profit organisation run by the Public Investment Fund, Saudi Arabia’s main sovereign wealth fund.
FII Institute said that central banks face structural challenges.
And according to the institute, when citizens move savings out of national banks and into private digital wallets, conventional capital controls lose their grip.
Institutions like the Bank for International Settlements warn that interest-bearing stablecoins compete directly with domestic-currency deposits, complicating financial oversight and making smartphone-based transfers incredibly difficult for authorities to monitor.
In Nigeria, Naira depreciation has pushed users toward dollar-stablecoins, according to report by Gino Matos in cryptoslate.com.
A stablecoin is a type of cryptocurrency designed to maintain a steady value by pegging its price to a reserve asset, such as a fiat currency (e.g., the U.S. dollar) or a commodity (e.g., gold).
They act as a bridge between traditional money and the digital asset world, providing the speed of crypto without the extreme price swings of assets like Bitcoin.
Federal government has reopened three federal government of Nigeria (FGN) bond issues valued at N1.2 trillion for subscription as part of efforts to raise long-term funds from the domestic debt market.
The Debt Management Office (DMO), which announced the offer on Tuesday, said the three reopened bond issues are each valued at N400 billion.
According to the DMO, the first offer is the January 2035 FGN Bond, a 10-year reopening, carrying an interest rate of 22.60 per cent per annum.
The second is the May 2028 FGN Bond, a 15-year reopening, with a coupon rate of 15.45 per cent per annum, while the third is the June 2037 FGN Bond, a 20-year reopening, also valued at N400 billion.
The office said the bond auction is scheduled for July 20, while successful subscriptions will be settled on July 22.
It explained that the bonds are offered at N1,000 per unit, with a minimum subscription of N50 million and additional investments in multiples of N1,000.
For the reopened bonds, the DMO said successful bidders would pay a price based on the yield-to-maturity that clears the auction, in addition to any accrued interest on the instruments.
Interest on the bonds will be paid every six months, while the principal will be repaid in full on the respective maturity dates.
The DMO reaffirmed that FGN bonds are backed by the full faith and credit of the Federal Government and constitute obligations chargeable on the general assets of the federation.
It added that the bonds qualify as trustee investment securities under the Trustee Investment Act and enjoy tax exemptions for eligible investors, including pension funds, under the Company Income Tax Act and Personal Income Tax Act.
The bonds are listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange and also qualify as liquid assets for banks in computing their liquidity ratios.
FGN bonds are long-term debt instruments through which investors lend money to the Federal Government in exchange for periodic interest payments and repayment of the principal at maturity.
Gigbanc, Nigerian fintech startup, has announced it is winding down operations, after three years, citing a tough fundraising climate.
Paul Omoregie Okundaye, and Babatope Oni, co-founders of Gigbanc
The company, which set out to build cross-border financial infrastructure for African freelancers, creators, entrepreneurs and businesses, confirmed the decision in a statement signed by its co-founders.
“After careful consideration, Gigbanc’s leadership has made the difficult decision to wind down operations,” the company said, adding that the move “reflects the broader funding environment affecting early stage startups in Africa, a challenge that has been widely documented across the ecosystem.”
Since its founding, Gigbanc grew a community of more than 150,000 people across multiple countries and processed over $7.28 million (N10 billion) in payment volume, helping thousands of users receive their first international payment.
The company also ran conferences, fellowships and community events aimed at connecting entrepreneurs and creators across the continent.
`Despite the shutdown, Gigbanc said it is not walking away emptyhanded.
The company disclosed that it is in active acquisition discussions with a prominent financial infrastructure firm, with further details to be shared once the process closes.
Paul Omoregie Okundaye, co-founder and CEO, and Babatope Oni, co-founder and CTO, framed the closure as the end of a chapter rather than the erasure of Gigbanc’s impact.
“While Gigbanc is winding down operations, we don’t see this as the end of what we built together. Instead, we see it as the completion of an important chapter,” the founders said. “The relationships, lessons, community, and impact we’ve created will continue to outlive the company itself.”
The founders thanked users for their trust throughout the company’s run, citing everything from transactions and feature requests to bug reports and criticism as forces that shaped the product
“We leave this journey incredibly proud. Proud of our team, who gave everything they had.
Proud of the community that rallied behind us,” they said.
Gigbanc’s exit adds to a growing list of African startups that have shut down or scaled back operations in recent years as venture funding on the continent has tightened, with founders increasingly citing capital scarcity as the primary driver behind closures and consolidations.
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