E-Financial
CBN Should Cut Interest Rate in 2018 To Boost Investors’ Confidence- Otunuga
Lukman Otunuga is a research analyst at FXTM. Prior to joining FXTM, Lukman spent two years as a research analyst with international currency broker FXCM, where he focused on technical and fundamental analysis of the global currency, commodity and stock markets.
Lukman was also responsible for leading educational seminars for international and local high net worth individuals, and has published a series of educational articles on forex trading with City A.M. Lukman holds a BSc (hons) degree in Economics from the University of Essex, UK and an MSc in Finance from London School of Business and Finance, where he studied corporate finance, mergers & acquisitions and the role of international financial institutions. Lukman recently had chat with select media organisations. Peter oluka was there for Nigeria CommunicationsWeek.
Nigeria Exited Recession
I was very happy when we heard news a few months back about the growth in Q2 (quarter 2, 2017), breaking the barriers to economic growth. It was very good and expected. If you look at the steps taken by the Central bank of Nigeria (CBN), especially at the start of the year, they have done well. When the country’s economy slide to recession, I knew it was going to have a large impact.
The CBN realised that cost inflation was the major issue, sharp depreciation of Naira skyrocketed the situation with cost of importation became quite expensive. The importers where sending the costs back to the consumers. So, by opening the important and export forex window helped to cushion the effect. Presently, naira is N360/$ and the official rate is N305/$, so it is a great departure from what we saw in February this year.
Secondly, what I have realised, if you look closely at the Government; the $5.5billion loan which everybody has been talking about, this is quite big. One, if you look at the breakdown of the loan, you will realise that $2.5billion will be utilised in funding the 2018 budget. For an ‘infrastructure budget’, this is very good. This is what international investors want to hear; that Nigeria is moving forward to funding infrastructure and diversifying. Through that means, the investors’ sentiments towards Nigeria will be positive. Part of the loan is used to service local debt, which is also good.
A few weeks ago Moody downgraded Nigeria from B1 to B2 and the reason gave was that after the budget, they suggested, that Nigeria wasn’t taking the right steps. So, Nigeria was unsuccessful in shielding investments and the economy from oil shocks. While I understand reason they put that out there, we must know that the journey for Nigeria to diversify is not going to happen overnight. It is something that will take a couple of year. E.g. if you look at GDP growth in the third quarter (Q3) it was 1.4%; a chunk of it was through oil price recovery. What other people are not saying is that another chunk of it came from agriculture. So, Nigeria is taking steps to invest in other sustainable socio-economic growth.
Projections About 2018 Budget
Before making these predictions, we have to look at 2018 ‘Budget of consolidation’. I believe if you look closely at the budget, probably, the Nigerian Government has learnt lessons from previous budgets.
First, they must move and implement that budget by approving it in January 2018. We don’t want to see a situation what happened in 2017 when the budget was passed until middle of the year. If you look at figures, the Government has predicted that oil price will be at $45 at 2.3m/barrels per day at N305/$.
While I agree with the $45 and N305/$, I am sceptical about the 2.3m barrels/day. Keep in mind that OPEC meeting may probably hold early next year; presently, Nigeria is except from crude oil cut. I hope the Government has put into consideration that OPEC has actually requested all members to cut production to 1.8m barrels/day. But Nigeria’s exception was due to conflicts in the Niger-Delta. If this is being fixed, who knows, OPEC may start to ask Nigeria: it’s time for you to cut production back to 1.8m barrels/day. Right now, Nigeria’s production is 2m barrels/day. So, if you move oil production to 1.8million barrels/day from 2.3m, it something to consider.
In furtherance to my comments back in February, as inflation continues to subside, probably when it gets below 14%, the Central Bank of Nigeria (CBN) should be offered the power to cut the interest rates to 12%. This is what we have been saying; once they do that they will actually encourage businesses to loan, thereby stimulating economic growth.
When it comes to Naira, the CBN has done a great job, stabilizing the Naira by nafex, improving the liquidity of the currency. We see the naira stabilising in the parallel market taking closer to CBN’s rate of N305/$
Key infrastructural development government should focus on in 2018
Top on the priority list of infrastructure that government should consider is the electricity. Statistics shows that electricity creation in Nigeria is very low. Stable electricity will naturally impact the businesses that will feed-back the economic growth. Roads are also important, especially in transporting goods.
Today, when we were moving around, the roads are very bad with deeps and gullies. Agriculture is another very important part that the Government will look into. Looking closely to the Nigerian population of 190million people; this is over 50% of the whole population of West Africa and we know that Nigeria has high rate of youth unemployment; these are able-bodied young people.
If the government can invest more on innovative farming, it could be the medium to absorb some of the young people. Not only will this support employment, but will enable Nigeria have food security. Yes, the economy has improved compared to February, but being able to grow and export our food is very important too. So, electricity, road and agriculture are three key areas government must not fail to address.
Following that, naturally, are, education, health and manufacturing.
Assessment of Nigeria’s Ability To Leverage Int’l Trade Agreements
To be honest, after the President went to China and the pronouncement was made that Nigeria and China has entered into agreement on the Yuan, I haven’t heard anything about it again. I wouldn’t know if the Government is trying to focus, first, internally; to be sure we are in the right and stable position, before we start dealing with international trade agreements.
Cryptocurreny and the Future of Online Forex
I don’t really blame the people who are still sceptical about bitcoin. Could you believe Bitcoin would ever sell for over $10,000? At the start of the year, it was below $1,000. That is over 900% increase which is why people jumping in; it is an amazing opportunity. But the problem with bitcoin is there is no real fundamental behind it. The main driver behind it is simply investors jumping in. It’s just like the stock market is rising, every body would want to be part of it. It rises on speculation.
Another thing about Bitcoin is, it doesn’t have really intrinsic value, which raises the fear it could be another massive speculated bubble. And we know what happens to bubbles- they burst. This is why the Nigerian Government is very protective, especially for the people of Nigeria jumping at it. Because something that lack intrinsic value, extremely volatile and not even licensed by the Central Bank of Nigeria (CBN) nor covered by insurance, if you jump in and lose, that is the end of it.
Inspite, the scepticism, there are still the positives. We heard about the CME Group; they are planning to launch bitcoin features this month. That is a big move, because they are going to trade bitcoin, and track investors like banks. This will be a game changer in the bitcoin segment; who knows it will hit $25,000 by 2018. It is just that it remains a bubble….
….What are Bitcoin’s impact on forex market?
Honestly, I haven’t seen any bitcoin bullish impact on the forex market. With regards to how it has impacted the financial market in general, there have been some talks it is becoming the new safe haven. Such asset depicts that people are not safe and would like to have a safe net for their assets. It’s similar to what happens with gold.
When people and businesses gain genuine access to financial services, they gain the ability to transact securely, build savings, and access credit. That access creates the conditions for progress: more stable revenues, better business decisions, and the capacity to grow. Progress, sustained over time, is what produces financial happiness. This framework is how Moniepoint measures its impact.
According to Moniepoint 2025 Impact Report, titled creating financial happiness; “Financial happiness is the feeling of confidence and ease that comes with financial freedom and well-being. It is a condition that develops over time and requires a specific set of enablers to take hold.
For millions of people and businesses across Nigeria, those enablers, like tools and solutions to manage their finances, have historically been out of reach. Moniepoint was built to change that, and this change, for us, begins with inclusion”.
Across the world, access to digital tools is a key driver of financial inclusion. The World Bank’s Global Findex 2025 report finds that more than 60% of adults in low- and middle income economies now make or receive digital payments. In Nigeria, this figure is around 54%. Moniepoint has been a key driver in expanding this access with its POS terminals. “Our terminals also drive financial inclusion for individuals.
The report stated that, in 2025, Moniepoint enabled 100 million people to make payments via their POS terminals across the country. For customers in communities where bank branches are scarce or non-existent, a Moniepoint terminal at their local shop, market stall, or fuel station provides reliable access to digital financial services.
They can make purchases, withdraw cash, and manage their money without travelling long distances or depending solely on physical currency. Critically, customers without cards can complete transactions through direct bank transfers to the terminal’s account.
Beyond practical benefits, Moniepoint terminals have also introduced a new layer of trust to everyday commerce. “When network issues make it unclear if a payment went through, the Moniepoint terminal’s loud beep provides instant confirmation for everyone, building trust in digital payments with every transaction”.
Moniepoint POS terminals operate across all 774 local governments in Nigeria, ensuring that small sellers and large stores can accept payments reliably, regardless of location.
In 2025, millions of Nigerians, businesses and individuals alike, accessed Moniepoint services through its mobile app. Top among them are groups like women and low-income earners, who have historically been excluded from formal banking. Inclusion of women is particularly important, as they typically manage household spending and informal savings but are frequently left out of structured financial systems. “Through our app, they are gaining financial independence and greater control over their economic decisions,” the report added.
For millions of Nigerians, debit cards represent a move away from the limits of cash transactions. They enable safer, more reliable everyday payments, particularly as more local businesses begin to accept digital payments.
Moniepoint debit cards are designed to meet this need. In 2025, Moniepoint customers completed over 300 million card transactions at physical locations, largely driven by essential, food-related purchases. Most of this spending took place at neighbourhood provision shops where households buy everyday items such as rice, cooking oil, and soap.
“We’ve made access to our cards intentionally simple. Customers can get a Moniepoint debit card by requesting it within their mobile app or from neighbourhood agents, without lengthy paperwork or waiting periods. By lowering these barriers, more people are able to access financial tools and participate in the formal financial system.
“Our cards also safeguard our customers’ financial information. They don’t carry special markings or any identifiers that could expose our customers or put their financial security at risk. In the event of loss, this reduces the likelihood of targeted fraud or misuse.
“When people can pay with their debit cards at their neighbourhood stores, they can manage their spending, reduce cash handling, and transact more securely. Merchants also benefit, recording higher transaction volumes and more consistent customer activity.
“Moniepoint helps millions of businesses and individuals across Nigeria access seamless payments and banking, every day. The widespread adoption of our tools and services, as highlighted, demonstrates our critical role in expanding financial access, supporting everyday commerce, and enabling more Nigerians to participate safely and consistently in the digital economy,” the report noted.
ChatPay has launched Africa’s conversational banking platform, enabling individuals and businesses to access financial services through WhatsApp.
The Lagos-based fintech startup, is in controlled rollout, connecting WhatsApp to linked-bank management, airtime and supported electricity payments through simple conversations.
The company said the platform is designed to enable users to send money, pay bills, buy airtime and manage business transactions within WhatsApp conversations, subject to the completion of regulatory approvals and integration with licensed banking partners.
According to ChatPay, the platform is operated by CP Technology Limited and is currently undergoing a phased rollout ahead of its planned public launch.
The company said the initiative is intended to simplify access to financial services by leveraging WhatsApp, which it estimates is used by more than 50 million Nigerians monthly.
Speaking on the idea behind the platform, Adeoluwasubomi Odebunmi, product lead and co-founder, said the concept emerged while she was studying Software Engineering at Babcock University.
“I saw the gap while I was still in school—how much friction there was just to move money. I didn’t want to just study the problem. I wanted to help fix it,” she said.
Odebunmi said she had previously worked on software solutions spanning e-commerce, real estate management, school administration and artificial intelligence applications before co-founding ChatPay.
Aseoluwa Siyanbola, growth lead and co-founder, said his experience managing Nigerian bank accounts while studying abroad highlighted some of the challenges users face with digital banking services.
According to him, difficulties such as one-time password (OTP) failures and inconsistent banking applications inspired the team to explore conversational banking solutions.
“We each encountered similar challenges and came together to build a solution that simplifies everyday financial transactions,” he said.
cAbraham William, tech lead and co-founder, said the company is focused on improving access to financial services through a platform that many Nigerians already use daily.
“We want to make financial services easier to access by allowing people to carry out transactions through a familiar messaging platform,” he said.
William said he oversees the company’s engineering, technology strategy and system architecture.
ChatPay said its services will be introduced in phases as regulatory requirements are met and integrations with banking partners are completed.
The company added that its newly launched “Founding 2,500” programme will enable selected early users to test features, provide feedback and participate in product development before the platform’s wider rollout.
According to the company, interested users can register for the waitlist and the Founding 2,500 programme through its website.
Founded by Odebunmi, Siyanbola and William, ChatPay said its long-term goal is to expand conversational banking services beyond Nigeria into other African markets after its domestic rollout.
United Bank for Africa (UBA) Plc has been named Nigeria’s Best Bank for Retail Banking and Best Bank for Sustainability Leadership (ESG) at the 2026 Euromoney Awards for Excellence, reinforcing its position as one of Africa’s leading financial institutions.
The awards were presented on July 17 at The Peninsula London in the United Kingdom, recognising financial institutions that have demonstrated outstanding performance, innovation, customer impact and sustainable banking practices.
The double recognition highlights UBA’s growing influence in retail banking and its commitment to advancing environmental, social and governance (ESG) principles across its operations.
According to Euromoney, UBA distinguished itself through a series of sustainability initiatives, including the introduction of a Green Financing Facility designed to support households and businesses transitioning to renewable energy.
The publication also cited the bank’s ₦5 billion financing programme, implemented in partnership with the Bank of Industry (BOI), to provide funding for women-owned businesses.
Euromoney further recognised UBA’s commitment to achieving net-zero carbon emissions by 2050, describing it as a demonstration of the bank’s long-term sustainability strategy.
The publication also highlighted the bank’s efforts to integrate sustainability into its operations through the deployment of solar-powered energy solutions across 50 branches and comprehensive ESG capacity-building programmes that have trained more than 16,000 employees across the UBA Group.
In the retail banking category, Euromoney noted that UBA continued to consolidate its position as one of Africa’s largest retail banking institutions.
According to the publication, the bank expanded its customer base to more than 37 million by the end of 2025, while retail banking revenue increased more than fourfold to ₦429.5 billion.
The awards also recognised UBA’s continued investment in digital banking innovation, particularly enhancements to its artificial intelligence-powered chatbot, LEO.
Euromoney noted that LEO became Africa’s first AI-powered banking platform to facilitate cross-border money transfers in local currencies through the Pan-African Payment and Settlement System (PAPSS).
Commenting on the awards, UBA’s Group Managing Director and Chief Executive Officer, Mr Oliver Alawuba, described the recognition as a validation of the bank’s commitment to delivering value to customers while promoting sustainable development across Africa.
“To be recognised as Nigeria’s Best Bank for both ESG and Retail Banking in the same year sends a powerful message that sustainable banking and commercial success are mutually reinforcing.
“At UBA, we are committed to financing Africa’s future, supporting businesses and communities, promoting financial inclusion, and delivering innovative banking solutions that improve lives.
“These awards belong to our customers for their confidence in us and to every member of the UBA family whose dedication continues to make our vision a reality,” he said.
Also speaking, UBA’s Group Head, Marketing, Brand and Corporate Communications, Mrs Alero Ladipo, said the awards reflected the bank’s unwavering commitment to putting customers at the centre of its operations.
According to her, every innovation, investment and banking solution introduced by UBA is aimed at creating exceptional value for customers while expanding access to financial services.
“These awards are a powerful affirmation of our Customer First philosophy.
“Whether it is supporting entrepreneurs with access to finance, enabling seamless digital payments, advancing clean energy financing or expanding financial inclusion across Africa, UBA remains focused on delivering meaningful impact.
“We are honoured that one of the world’s most respected financial publications has recognised these efforts,” she said.
UBA currently operates in 20 African countries, as well as the United Kingdom, United States, France and the United Arab Emirates, serving more than 45 million customers through a combination of digital banking platforms and physical branch networks.
The bank said it remains committed to strengthening financial inclusion, driving innovation and supporting sustainable economic development across Africa and beyond.
HURIWA, CLO Protests Bill Asking Social Media Firms’ to Open Shops Nigeria
Anambra Govt Bans Graduation Ceremonies in Anambra Schools
Airtel Secures Another 10-year Spectrum Renewal in Nigeria
Moniepoint as a Key Driver in Expanding Financial Access for Businesses in Nigeria
Nigeria, Israel Strengthen Research, Technology Collaboration
NRC, Ponzi Scheme Collapses Resulting Loss of Billions of Naira
EFCC Busts NIS Visa Overstay Racket, Uncovers N700m in an Account
Tokenization, Blockchain Technology will Transform Financial Institutions – IMF
From Scarcity to Scale: What Africa Can Learn from India’s Agricultural Transformation
Spotify partners Afro Nation Portugal to expand African music experience
E-Business3 days agoKaspersky Warns Mobile‑data Buyers about Scammers Posing as Telecoms Operators
General News3 days agoThree Entrepreneurs Secure ₦5 Million at The Gathering on 100 Pitchathon
E-Financial3 days agoChatPay Unveils Public Waitlist for WhatsApp-Based Banking Platform
News3 days agoAfrican Judges Pledge Support for AfCFTA’s Success
Telecom3 days agoAirtel Africa Backs London Listing
Telecom2 days agoGSMA Supports Abuja Declaration on Meaningful Connectivity for Africa, Joins Partners to Launch ATLAS Umoja
Telecom3 days agoGSMA Says High Smartphone Costs Threatens Africa’s AI Future
E-Business3 days agoNigeria Leads Africa in Online Gambling Regulation – GCI