General News
Will Nigeria’s economy gather momentum during the second half of 2019?
The news that Nigeria’s economy cooled down to 2.05 percent in the first quarter of 2019 compared to 2.38 percent in Q4’18 has left investors wondering about the chances of growth gathering momentum during the second half of the year. On the one hand, it’s an encouraging sign we’ve seen the fastest first-quarter growth since 2015, driven mainly by the non-oil sector which grew 2.47 percent. On the other hand, the Oil sector shrank by 2.4 percent, sending a worrying signal that the sector isn’t doing as well as it should be even amid rising Oil prices.
It is becoming increasingly clear that economic growth is unlikely to reach the ambitious Economic Recover and Growth Plan (ERGP) target of seven percent but it may hit the Central Bank of Nigeria’s target of 2.47 percent. For this to happen, the growth trend in the Oil sector would need to rebound and the services sector would need to sustain its current strength. Added momentum could stem from Oil prices should they hit a bullish streak going forward, supporting the economy as the Oil trade still accounts for a handsome chunk of the nation’s foreign exchange earnings.
There are other potential areas of growth. Regionally there is a significant development which could increase economic efficiencies and trade within Africa – the African Continental Free Trade Area (AfCFTA) which comes into effect on May 30. Although Nigeria hasn’t yet joined AfCFTA, there’s still a chance it will do so, once discussions are completed with stakeholders. In addition to opening intra-Africa trade relations, the AfCFTA gives multi-national companies the chance to set up in one African country and be passported to another 52 countries within a common market made up of over one billion people. Increased access to foreign expertise and investment could improve local manufacturing and processing systems while driving more growth and jobs creation. In the best-case scenario, standardised trading agreements across AfCFTA may open up trading channels which could lead to increased company sales, revenues and profits. Nigeria sells just 12.7 percent of its total exports to other African countries, so if the treaty is ratified there’s scope for increased government and company revenues from a boost in trade.
In general, there needs to be a stronger push in diversifying away from Oil reliance to other sources of sustainable growth. An important part of sustainable growth is investment sentiment and the current economic stability along with easing inflationary pressures which may lead to a more dovish Central Bank of Nigeria (CBN) monetary policy by way of interest rate cuts. If so, a reduction in interest rates would stimulate borrowing and investment from local businesses, which in turn would support economic growth. A more robust economy plus foreign exchange reserves rising towards $45 billion would likely provide ammunition for the CBN to defend the Naira.
Another factor impacting on Nigeria’s recovery is the external threat of the US-China trade negotiations which could end up pressuring Oil prices if the result is a global slowdown, meaning less demand for Oil. The USD is staying strong amid the trade tensions and should they intensify further, they will hit emerging markets where it hurts – in their currency exchanges. This would undermine the Naira while pressuring consumer spending and on top of that, falling Oil prices would likely dent government revenues.
Looking ahead, there is scope for Nigeria’s economy to gather momentum in the second half of the year, provided some key basics of growth are kept in focus: supportive monetary policy; keeping consumer spending healthy; sustaining investor confidence; and improving economic infrastructure, particularly in the Oil sector. Even if the risks stemming from US-China trade disputes are out of Nigeria’s hands, shoring up the domestic economy could help it weather any storms. The worst-case alternative is less attractive. If a global slowdown is triggered due to the trade tensions, economic growth in Nigeria may follow suit, meaning the CBN will face more difficult challenges to support the Naira and wider economy through monetary policy.
Federal Competition and Consumer Protection Commission (FCCPC) has warned Lagos traders against enforcing the unlawful “no return, no refund” policy, declaring it illegal under the Federal Competition and Consumer Protection Act (FCCPA) 2018.
FCCPC
Dr Olubunmi Otti, FCCPC Southwest Zonal Coordinator, issued the directive during the inauguration of new executives of the Phone and Allied Products Dealers Association (PAPDA) on Wednesday, stressing consumer education as the strongest defence against market exploitation.
“There is no such thing as ‘no return, no refund’. If a product does not fulfil its intended purpose, the consumer has the right to return it,” Otti declared, adding the commission mediates complaints for refunds, replacements, or exchanges.
Non-compliant businesses face fines, product withdrawals, seizures, prosecutions, or shutdowns. Otti noted thousands of monthly complaints via the FCCPC portal in the Southwest alone, with sensitisation expanding to Alaba Market and Trade Fair Complex.
She urged consumers: “When your rights are violated, do not just say, ‘You give it to God.’ Bring your complaints to the FCCPC. The law empowers us to protect you,” while calling for traders’ collective responsibility to ensure quality products and services.
African Development Bank Group (AfDB) has approved a €6.5 million investment in the Saviu II venture capital fund to boost technology start-ups across Francophone West and Central Africa.
The Bank Group will contribute €4.5 million as equity investment and an additional €2 million as a first-loss hedging tranche on behalf of the European Commission under the Boost Africa Programme.
The investment is expected to strengthen early-stage financing for innovative businesses with strong technological and digital components, particularly in French-speaking countries.
Saviu II, the second investment vehicle managed by Saviu Partners, plans to invest between €500,000 and €3 million in about 20 seed-stage or early institutional fundraising start-ups. The fund will primarily target B2B technology-oriented companies with scalable models.
At least 60 per cent of the fund’s commitments will focus on French-speaking countries in West and Central Africa, including Côte d’Ivoire, Cameroon, Benin, Senegal, Togo, Burkina Faso and Mali.
The fund may also co-invest in promising East African technology firms seeking expansion into Francophone markets.
In addition, Saviu II will dedicate a special funding envelope for pre-seed investments, mainly through minority equity stakes, often in collaboration with incubators, venture studios and other ecosystem partners.
Industry observers say the AfDB’s backing is expected to de-risk early-stage investment and crowd in more private capital into Africa’s growing digital economy.
Saviu Partners previously launched Saviu I in 2018 with a capitalization of €10 million.
The first fund invested in 12 start-ups, mainly based in French-speaking West Africa, offering not just funding but hands-on support in business development, recruitment, international expansion and fundraising.
Nigerian Electricity Regulatory Commission (NERC) has ruled in favor of electricity consumers, directing distribution companies (DisCos) to refund ₦20.33 billion in outstanding costs for meters bought under the Meter Asset Provider (MAP) framework.
NERC
Signed on February 27, 2026, by Musiliu Oseni, chairman,NERC and Dafe Akpeneye, commissioner Order No. NERC/2026/025 amends a 2023 directive.
It requires DisCos to disburse the funds via energy credits over 12 months starting March 1, 2026, addressing years of slow refunds.
As of December 31, 2025, DisCos owed this amount due to delays in reimbursing prepaid customers who funded their own meters.
DisCos must automate credits for the full MAP meter cost upon activation, disbursed monthly over 120 months based on the customer’s tariff—credits cannot offset legacy debts.
Prepaid customers will receive a monthly token by the 4th day equivalent to the reimbursement value; for arrears, they’ll get two tokens per month.
Postpaid customers will see a distinct credit line on bills subtracted from totals, with two line items monthly for arrears.
NERC mandates monthly reports on reimbursement values using an approved template, plus dedicated email channels for complaints with resolution status included.
The order aims to end delays, improve notifications, and boost sector trust. DisCos must accelerate arrears recovery over 12 months without further excuses.
This follows NERC’s February 2026 compliance review, amid ongoing power sector challenges highlighted by Power Minister Adebayo Adelabu.
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