E-Financial
CBN Set to Establish Int’l Financial Centre at Eko Atlantic City
Mr. Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN), has disclosed plans by the apex bank to set up an International Financial Centre at the Eko Atlantic City in Lagos to be operational in the second quarter of 2022.
Emefiele explained that the facility is expected to serve as a hub for attracting domestic and external capital which is much-needed to strengthen the Nigerian economy post-COVID-19.
The CBN governor stated this in a keynote address he delivered at the 56th Chartered Institute of Bankers of Nigeria (CIBN) annual dinner held in Lagos at the weekend.
“The International Finance Centre when fully operational in the 2nd quarter of 2022, will help to position Nigeria as a key destination for investment in Africa,” Emefiele added.
The CBN governor noted that a key challenge to supporting growth in key sectors of the economy was access to large pools of cheap investment capital, adding that over $100 trillion was being held by institutional investors in Organisation for Economic Co-operation and Development (OECD) countries.
According to him, most of the funds were invested in low-yielding assets relative to high-yielding opportunities in Nigeria.
Furthermore, Emefiele noted that although uncertainties remained around the mutating Delta virus, prospects of a broad-based economic recovery in Nigeria were bright as efforts were being made to improve access to vaccines for Nigerians, in addition to measures aimed at implementing safety protocols to curb the spread of the virus.
He, however, pointed out that “our economic growth remains fragile, as our unemployment and inflation rate remains at levels that are not very supportive of growth. Second, continued implementation of our intervention efforts would need to be undertaken to sustain the recovery efforts and stimulate further growth of the economy.
“Third, given population growth at about 2.7 per cent annually, it is important that we continue to deploy measures that will enable our economy to attain annual growth rates of over five per cent.
“Through the pandemic, we are aware that our policy responses are often more effective when we work with the private sector. For example, the CACOVID alliance played an instrumental role in reducing the negative effects of the pandemic, by providing palliative support to families affected by the virus and in rebuilding our healthcare institutions.
“Leveraging the strength of the private sector will be critical in mobilising funds that are needed toward building a more resilient and stronger economy. We intend to strengthen collaborations with the private sector to support investments in critical sectors such as infrastructure, and ICT, in addition to ongoing efforts to build a stronger agriculture and manufacturing base in Nigeria.
“As a result, all efforts in 2022 must be made to ensure that we maintain our focus on improving access to finance and credit for households and businesses, mobilising investment to boost domestic productivity, enabling faster growth of non-oil exports, and supporting employment generating activities,” he explained.
Commenting on the recently introduced 100 for 100 policy on production and productivity, he reiterated that the programme targets credit of up to N5 billion to be provided to 100 firms every 100 days, provided that the firms are investing in projects that are Greenfield projects.
Secondly, projects would be assessed on their ability to generate significant employment opportunities in critical sectors of the economy, he added.
Thirdly on the 100 for 100 policy, he pointed out that eligible firms must show evidence of their efforts to harness available local raw materials towards the realisation of their intended investment.
Emefiele also said efforts would be made to support firms geared towards producing goods for the export market.
“Let me add that routine audits will be conducted on firms that receive funding, to ensure that they are complying with the terms of the program. We believe this program will significantly help to catalyse growth in critical sectors of our economy while aiding our efforts to create employment opportunities and reduce our dependence on imported goods.
“A key focus of the Central Bank of Nigeria under my leadership has been enabling the build-out of a robust payment system in Nigeria that will provide cheap, efficient, and faster means of conducting payments for most Nigerians.
“With the growing pace of digitisation globally, it is essential that we leverage digital channels in fulfilling this objective. Total transaction volumes using digital channels more than doubled between 2018 and 2020, as volumes rose from 1.3 billion to over 3.3 billion financial transactions in 2020.
“Digital payment channels also help to support continued conduct of business activities during the lockdown. Our robust payment system has continued to evolve towards meeting the needs of households and businesses in Nigeria. Reflective of the confidence in our payment system, between 2015 and September 2021, about $900 million has been invested in firms run by Nigerian founders.
“Notwithstanding these gains, close to 36 per cent of adult Nigerians do not have access to financial services. Improving access to finance for individuals and businesses through digital channels can help to improve financial inclusion, lower the cost of transactions, and increase the flow of credit to households and businesses.
“It is in this vein that the Central Bank of Nigeria recently deployed the first central bank digital currency in Africa, the e-Naira, which would help in attaining our goals of fostering greater inclusion using digital channels, supporting cross border payments for businesses and firms, and providing a reliable channel for remittance inflows into the country.
“The e-Naira will ensure that Nigerians in remote areas can conduct financial activities using their digital devices at little or no cost. It will also help to strengthen the effectiveness of government intervention programs, as funds provided will get to the intended beneficiaries. In less than four weeks since its launch, almost 600,000 downloads of the e-naira application have taken place.”
He added: “Efforts are ongoing to encourage faster adoption of the e-naira by Nigerians who do not have smartphones. The support of the financial industry will be critical in the ongoing deployment of the e-naira and efforts are ongoing to encourage continued partnership between the CBN and stakeholders in the financial industry.
“With the decline in revenues due to federal and state government as a result of reduced receipts from the sale of crude oil, alternative ways of funding infrastructure are critical if we are to ensure sustained growth of our economy. As we are all aware, the cost of logistics is often seen as a significant impediment to the growth of businesses in the country.
“In recognition of the role improved infrastructure could play in the development of our economy, along with the need to leverage private sector capital in funding the over N35 trillion deficit, which is the estimated amount required to build an efficient infrastructure ecosystem in Nigeria, the Central Bank of Nigeria working in partnership with critical stakeholders such as the Nigerian Sovereign Investment Authority (NSIA) and African Finance Corporation (AFC) set up Infracorp. Infracorp is expected to raise over N15 trillion to support investment in critical infrastructure in Nigeria.
“So far, N1 trillion has been provided as seed funds by the promoters to support the operations of Infracorp. We recently appointed four fund managers, and a Management Team has been selected to run and manage Infracorp.
“Over the next two months, Infracorp will kick off its operations by targeting strategic infrastructure projects that would help catalyse further growth of our economy. Infracorp is expected to set the standard template that will help in enabling greater private sector funding for public infrastructure projects in Nigeria.”
On the outlook for 2022, Emefiele revealed that CBN’s in-house model, after an exhaustive simulation with various oil price possibilities and numerous scenarios of other macroeconomic metrics, indicates a continued and strong rebound of the domestic economy.
He said the near-term outlook of the Nigerian economy was brightening significantly, with improvements projected into the short- and the medium-term. He projected that the real GDP growth rate would remain robust and strengthen within the short term.
“Output growth rate is projected to remain positive from 4.03 per cent in 2021q3 to nearly 2.91 per cent in 2021 fourth quarter, implying a total growth of about 3.10 percent for 2021. The short-term projection indicates a continued strengthening of the growth rate.
“Deliberate structural policies and reforms are needed to raise this projected trend higher towards the desired five per cent average growth level.
“Output growth rate for the Nigerian economy is broadly estimated by key institutions to consolidate in 2021. The IMF and the World Bank project real growth rates of 2.6 per cent and 2.4 per cent, respectively while the estimate by the Federal Ministry of Finance and National planning stands at 3.0 per cent.
“Generally, the real GDP growth rate is projected to remain robust and strengthen within the short-term, regardless of the immanent vulnerabilities. With this continued strengthening, real GDP could recover beyond the pre-pandemic levels by the first quarter of 2022. Further simulations of the medium-term projections suggest that Nigeria’s real GDP could surpass pre-COVID trends by 2024.
“The business environment remains optimistic given the sustained policy interventions in the economy. The overall business confidence index is projected to rise significantly from -9.2 index points as at end-August to over 37.7 index points in November 2021 and surpass 57.6 index points by mid-2022,” he added.
David Malpass, former World Bank President, has warned that Nigeria’s increasing reliance on collateral-backed and complex borrowing arrangements could make any future debt restructuring more difficult and discourage investors if the country’s debt position becomes unsustainable.
David Malpass, former World Bank President
Malpass, who was 13th president of the World Bank Group, from April 9, 2019 – June 1, 2023, raised the concern in a World Bank Policy Research Working Paper titled Public Debt and Central Banks, which was based on the Stanley Fischer Memorial Lecture delivered at the World Bank Group’s Annual Bank Conference on Development Economics.
He said increasingly sophisticated collateralised transactions in developing economies, including Nigeria, Angola and Senegal, were creating what he described as “a new race toward seniority in the capital structure.”
In sovereign lending, collateralised creditors may gain priority over other lenders by tying repayment to specific assets, revenues or financial instruments. Malpass warned that the expansion of such arrangements could leave fewer resources available for unsecured creditors and make negotiations more contentious during a debt crisis.
He also questioned the growing use of guarantee products provided by multilateral development banks, arguing that their effectiveness had not been adequately tested during sovereign debt restructurings.
According to him, private lending to distressed or high-risk governments has become less transparent, with some commercial agreements containing non-disclosure clauses that prevent citizens, investors and other creditors from understanding their full implications.
Malpass said debt reconciliation efforts were already being hindered by limited access to sovereign loan contracts, particularly agreements linked to Chinese lending programmes.
The former World Bank chief also criticised the international debt restructuring system, arguing that existing mechanisms had failed to provide timely and meaningful relief to heavily indebted countries.
Beyond debt transparency, Malpass identified exchange rate stability as an important requirement for Nigeria’s economic growth.
He grouped Nigeria with Ethiopia and Egypt among countries where multiple exchange rates and poorly managed currency systems had transferred wealth from low-income earners to politically or economically privileged groups.
He estimated Nigeria’s per capita income at about $1,500, or roughly $4 a day, while noting that median income was likely to be considerably lower because wealth remained concentrated among a small proportion of the population.
Malpass argued that the benefits of credible currency reform could be substantial, pointing to the significantly higher earnings of Nigerians working abroad as evidence of the country’s unrealised productive potential.
He disclosed that, while serving as World Bank president, he held several meetings with Nigeria’s previous administration, cabinet officials and the bank’s Nigeria team to identify reforms capable of accelerating economic growth.
Those discussions highlighted currency stabilisation, exchange rate unification, oil sector reforms, tax changes and agricultural liberalisation, particularly in rice production, as priorities.
Malpass said the reforms could transform Nigeria’s economy in a manner comparable to the policy changes that helped launch China’s sustained period of rapid growth in the 1990s.
Malpass’ warning comes amid continuing scrutiny of Nigeria’s use of unconventional financing to refinance expensive obligations and cover budget deficits.
The International Monetary Fund and Fitch Ratings had earlier raised concerns about the Federal Government’s proposed $5 billion Total Return Swap with First Abu Dhabi Bank, warning that derivatives-based sovereign borrowing could obscure the country’s true debt exposure and complicate future restructuring.
Despite those concerns, Nigeria reportedly accessed an initial tranche of about $1.5 billion from the arrangement.
The controversy follows years of debate over the transparency of Nigeria’s borrowing, including loans linked to crude oil revenues, infrastructure assets and bilateral agreements whose full terms were not always publicly disclosed. With debt-service costs consuming a substantial share of government revenue, the latest warning reinforces concerns that short-term financing relief could create more difficult obligations for future administrations.
Ecobank Nigeria has launched Scaling Up!!!, its flagship business storytelling podcast designed to inspire, educate and empower entrepreneurs, founders, business leaders and the next generation of African innovators through authentic conversations with some of the continent’s most accomplished business personalities.
The podcast, which will be available on Ecobank Nigeria’s official YouTube channel and other major digital streaming platforms, reinforces the bank’s commitment to supporting businesses beyond banking by creating a platform where entrepreneurs can learn from the experiences of successful founders, creatives and industry leaders who have built thriving enterprises across diverse sectors.
Featuring compelling conversations on entrepreneurship, leadership, innovation, resilience and business growth, Scaling Up!!! offers practical lessons and real-life insights that aspiring and established entrepreneurs can apply in building sustainable businesses.
The inaugural season features an impressive lineup of distinguished guests, including beauty entrepreneur and Founder/CEO of Beauty by AD, Adeola Adeyemi (Diiadem); renowned filmmaker and Founder of Golden Effects Pictures, Kunle Afolayan; veteran music producer and Founder of Coded Tunes, ID Cabasa; luxury fashion entrepreneur, Ejiro Amos Tafiri; celebrated commercial photographer, Emmanuel Oyeleke; Co-founder and Lead Interior Designer of Siriano Limited, Adewunmi Adegbola; and Founder of Windsor Gallery and Nahous Creative Hub, Richard Vedelago.
Each episode explores the guests’ entrepreneurial journeys, highlighting the opportunities they embraced, the challenges they overcame and the strategies that enabled them to build enduring brands and successful businesses.
Speaking on the launch, Austen Osokpor, Head, Marketing & Corporate Communications, Ecobank Nigeria, said: “Scaling Up!!! reflects Ecobank’s belief that empowering entrepreneurs goes beyond providing financial solutions.
“Through authentic storytelling and insightful conversations, we are creating a platform where business owners can learn directly from people who have successfully navigated the realities of building sustainable enterprises. It is another way we are reinforcing our commitment to driving entrepreneurship, innovation and economic growth across Africa.”
Also speaking, Head, SMEs, Partnerships & Collaborations, Ecobank Nigeria, Omoboye Odu, said: “Entrepreneurs learn best from the experiences of those who have walked the journey before them. Scaling Up!!! provides practical insights, inspiration and valuable lessons that will help founders make better business decisions, overcome challenges and unlock new opportunities for growth.
“The podcast further strengthens Ecobank’s role as a trusted partner supporting SMEs at every stage of their entrepreneurial journey.”
Sharing the creative vision behind the initiative, the Producer of Scaling Up!!!, Jemimah Ugiagbe, said: “Our goal was to create more than just another business podcast. We wanted honest, engaging and relatable conversations that reveal the realities behind success, the setbacks, the resilience, the bold decisions, and the lessons that every entrepreneur can learn from.
“Every episode is designed to leave listeners informed, inspired and motivated to build businesses that create lasting impact.”
The podcast further strengthens Ecobank Nigeria’s position as a trusted partner for entrepreneurs by providing a knowledge-sharing platform that extends beyond traditional banking services. GeographicReference
Through meaningful conversations with accomplished founders and innovators, the bank continues to demonstrate its commitment to fostering enterprise development, encouraging innovation and promoting sustainable economic growth across Africa.
Scaling Up!!! is targeted at SMEs, entrepreneurs, founders, startups, business executives, creatives, students and young professionals seeking practical business insights from some of Africa’s most respected industry leaders.
New episodes will be released regularly across Ecobank Nigeria’s YouTube channel and other major podcast streaming platforms, offering audiences thought-provoking conversations on entrepreneurship, leadership, innovation and business growth.
Ecobank Nigeria is a member of the Ecobank Group, the leading pan-African banking institution with operations in 33 African countries and international offices in London, Paris, Beijing, and Dubai.
With over 220 branches, more than 36,000 agency banking locations, and robust digital platforms, Ecobank delivers accessible, affordable, and instant banking services. The bank is strategically positioned to support pan-African trade, particularly under the African Continental Free Trade Area (AfCFTA).
S&P Global has agreed to acquire a majority stake in Agusto & Co., one of Africa’s oldest and largest domestic credit rating agencies, in a move that signals growing international interest in the continent’s capital markets and credit ecosystem.
According to a joint statement by the rating agencies. The transaction, which is subject to regulatory approvals, will give the global ratings giant a stronger foothold in Africa through Agusto & Co.’s operations in Nigeria, Kenya, Ghana, and Rwanda. Financial terms of the deal were not disclosed.
The acquisition marks one of the most significant investments by a global ratings agency in Africa’s domestic credit ratings market in recent years and comes as governments and companies across the continent increasingly rely on local debt markets to finance infrastructure, corporate expansion, and fiscal deficits.
Yann Le Pallec, president of S&P Global Ratings, said the investment reflects the company’s long-term commitment to Africa’s financial markets.
“We are delighted to partner with Agusto & Co. to strengthen our domestic ratings presence across Africa,” Le Pallec said. “This transaction underscores our commitment to supporting growth and transparency in local credit markets throughout the continent.”
He added that combining S&P Global’s international analytical capabilities with Agusto & Co.’s local market knowledge would help improve credit transparency and support investor confidence across African markets.
Founded more than three decades ago, Agusto & Co. has built a reputation as one of Africa’s leading domestic rating agencies, providing credit ratings on banks, corporates, and other institutions. The company has expanded beyond Nigeria into several African markets and has played a key role in the development of domestic bond markets.
For Agusto & Co., the transaction represents a major milestone in its growth strategy and fulfills a long-held ambition to align with a global ratings institution.
“This partnership is a transformational milestone for Agusto & Co. and African capital markets, fulfilling our late founder’s vision of affiliating with a leading global rating agency,” said Yinka Adelekan, managing director of Agusto & Co.
According to Adelekan, the combination of Agusto’s regional expertise with S&P Global’s international resources and analytical network is expected to create broader opportunities for issuers and investors while supporting more transparent and resilient credit markets across Africa.
Despite the ownership change, Agusto & Co. said it will continue operating as an independent domestic ratings agency, maintaining its own rating methodologies and issuing ratings under applicable regulatory frameworks.
That structure is expected to preserve the agency’s regulatory standing in the jurisdictions where it operates while enabling it to benefit from S&P Global’s technology, research capabilities, and global market expertise.
The acquisition also reflects increasing global interest in Africa’s capital markets, where governments are pursuing domestic borrowing strategies and private companies are seeking alternative sources of long-term financing amid tighter global liquidity conditions.
The transaction is expected to close in the second half of 2026, subject to regulatory approvals and other customary closing conditions. S&P Global said the acquisition is not expected to have a material impact on its financial results.
Fact-Check: Elon Musk’s “Tesla Pi Phone” is Internet Rumor
Dangote Plans to Donate One-Third of Wealth to Charity as Legacy
NDPC Directs DCPMIs to Register with Agency or Face Legal Consequences
Malpass, Ex World Bank Chief Raises Alarm over Nigeria’s Secretive Debt Structures
How and Why Apps Deplete Data – ALTON
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
BON Establishes Six Ad Hoc Committees to Modernize Broadcasting
News2 days agoSee Verified 20 Countries Nigerian Passport Holders Can Travel Visa-Free
E-Business2 days agoReport Says Cybercriminals Deploy Malware to Hijack Crypto Wallets, Monitor Browsers Telegram
Telecom2 days agoNCC, REA Partner to Cut Telecom Costs with Renewable Energy
Telecom2 days agoSubscribers, Telcos Warn FCCPC over Airtime Lending Enforcement
E-Business2 days agoNPC Opens 131 Births, Deaths Registration Centres in Anambra
General News2 days agoAfDB, Nigeria Urge African Control of Mineral Resources
News1 day agoHistory as Lagos Becomes First Nigerian State to Launch Greenhouse Gas Registry
General News2 days agoLagos Chamber Opposes 21 Percent Pension Contribution, Warns of Job Losses