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Critics Blame Buhari, CBN for Nigeria’s Worst Economic Crisis

Published

10 years ago

June 1, 2016

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Some Nigerians have blasted President Muhammadu Buhari, elected on a wave of optimism last year, for failing to react not fast enough to the changing climate but made matters worse by experimenting with outmoded remedies that have not stemmed the economy’s freefall.

Godwin Emefiele, governor of Central Bank of Nigeria (CBN) has also come under bouquet of criticisms for some of his obnoxious policies as the apex bank governor.

Financial Times reported that as consequences of these that; supermarkets in Lagos are struggling to keep their shelves stocked, fuel is rationed and food prices have soared.

“The pain level is going up,” said Olisa Agbakoba, former head of the Nigerian Bar Association. “Everything is in short supply.”

Kayode Akindele at TIA Capital, a Lagos-based investment firm said that “The economy was a mess anyway and Nigeria was heading for a hard fall, but . . . should the fall be this hard?”

‘Self-inflicted’ wounds
According to the Financial Times, the fortunes of Africa’s most populous nation and leading oil producer have long ebbed and flowed with the price of oil, on which Nigeria depends for more than 90 per cent of hard currency earnings. But economists list several factors that make the current downturn markedly more worrying.

The structural change in the global oil industry since shale reserves were opened up by the development of new fracking techniques in the US makes it unlikely that major oil producers like Nigeria will see a significant price recovery any time soon.

In 2008, the last time crude prices crashed, Nigeria had savings to fall back on. This time it doesn’t: the administration of former president Goodluck Jonathan squandered the proceeds of the boom years in a bonanza of profligacy and corruption before he was voted out of office.

Then there is what critics describe as the “self-inflicted” wounds — the currency policies and associated import controls set up to conserve hard currency by prioritising strategic imports when Mr Buhari took power 12 months ago.

These have starved existing businesses of inputs, leading to a collapse in supplies of everything from medicines to spare parts, while incidents of price gouging have risen. The policies are also blamed for encouraging capital flight while forestalling fresh investment. Inflows dropped by nearly 75 per cent to $711m in the first four months of 2016.

“No one, even investors like us with a long-term view, is going to put money into Nigeria in the expectation of losing a third of the value of that investment,” says a senior partner in a UK-based private equity fund. He and other investors say that despite the president’s visceral opposition to devaluation, it appears inevitable.

The impact has been chilling. Nigeria’s economy, which grew annually at an average rate of 7 per cent in the decade to 2014, contracted by 0.36 per cent in the first quarter. According to most forecasts it is heading into recession.

The import controls and restrictions on foreign exchange have hit the manufacturing sector hard, eroding the credibility of the Buhari administration’s ambition to diversify the economy.

“Growing non-oil income is a key economic strategy of this government,” says Keith Richards, a veteran of Nigeria’s consumer goods industry who used to run a subsidiary in the country of Guinness, the brewer. “Blocking manufacturers manufacturing will have the opposite effect.”

More than half a million workers lost their jobs in the first four months of this year, according to official statistics. The livelihoods of tens of millions more people employed in the informal sector have been hit by inflation of nearly 14 per cent, spurred by escalating shortages of basic goods and the rapid devaluation of the naira on the parallel market, where most traders are now compelled to source their foreign exchange.

And while a new wave of militancy in the oil-producing Niger Delta has triggered a rally in the global price — it hit $50 per barrel last week for the first time in seven months — the violence is making matters worse at home, with any gains offset by production losses. In recent weeks, pipeline attacks have cut production to 1.45m barrels a day — far short of the 2.2m assumed in this year’s expansionary budget.

Oil revenues typically account for more than two-thirds of government income. Collapsing prices and falling production mean the government is now operating on about one-quarter of the $5bn in monthly revenues it had before the price fall began in mid-2014. Many state governments are now unable to pay salaries while power generation levels are at their lowest in years.

“Investors fear Nigeria is on a stagflationary road to Venezuelan-style multiple exchange rates and eventual meltdown,” says Charlie Robertson, chief economist at Renaissance Capital. “[But] we think reformists will help Nigeria swerve in time and avoid that car crash,” he said, after a government decision earlier this month to raise the price of fuel by 67 per cent in response to months of crippling shortages.

The price rise was interpreted as the government accepting the reality of severe dollar scarcity. But it fell short of the deregulation of state-set fuel prices that has long been urged by economists seeking to ease the chronic distortions in the economy. It left many observers saying shortages will return unless the government loosens its grip on the price of both fuel and the naira.

In a speech on Sunday marking his first year in office, Mr Buhari said he had inherited a “state near collapse”, ill-equipped for the strain of low oil prices. Insecurity was widespread, “corruption and impunity were the order of the day” and the treasury had been emptied. The initial challenge for his government had been to block leakages and reconstruct “the spine of the Nigerian state”.

The central bank last week admitted that the exchange rate cap — defended by Mr Emefiele as a way of protecting strategic imports from the low oil price and shielding the poor from inflation — is failing and should be abandoned. The comments fuelled speculation of a policy switch. Mr Buhari, on Sunday, appeared defensive about the approach taken so far but acknowledged that he had been forced to listen to advice to change course. He said he supported the central bank’s new strategy “to ensure alignment between monetary policy and fiscal strategy”.

The president also hinted in a briefing with local media that he was open to considering his options. “The . . . economists come and talk things to me, and when I raise issues they talk over my head instead of inside my head,” he was quoted as saying in Nigeria’s ThisDay newspaper. “On the value of the naira, I’m still agonising over it . . . I need to be educated on this . . . I am under pressure and we’ll see how we can accommodate the economists.”

Mr Emefiele has been crucial to the president’s defence that tight currency controls are the best response to the economic crisis. The two men meet frequently at the presidential villa, according to one of Mr Buhari’s spokesmen, and statements on monetary policy by the two over the past year are virtually indistinguishable.

Business argues that a controlled devaluation would allow manufacturers and traders to make informed pricing decisions, less dependent on the central bank governor’s will. Despite the recent comments, however, companies are not holding their breath.

Others in the government insist that the new budget will kick-start the economy. External borrowing to finance it has yet to be secured, however, and business remains unconvinced that government spending alone will be enough.

“It’s a monumental waste of money to be trying to stimulate the economy on the one hand and slowing it down on the other,” said Oyin Anubi, an Africa economist at Bank of America in London.

Losing allies
The damage is not just economic. The country’s travails have overshadowed progress the president has made on the problems he most wanted to tackle: the Islamist insurgency of Boko Haram and pervasive corruption in government.

Most damaging though is the political impact that is beginning to cost Mr Buhari allies. His decision-making style appears, even to senior members of the administration, overly secretive. Some criticise him for failing to consult with his cabinet and view his refusal to listen to alternative points of view.

Obiageli Ezekwesili, who served as a minister in two previous administrations and once led the World Bank’s Africa division, recently criticised Mr Buhari’s economic policies as “opaque” and “archaic”, saying that something that “did not work in 1984 cannot possibly be a solution in a global economy that’s much more integrated”.

Advisers to the president say his original priority was to lift people out of poverty. It was not to please the wealthy business community and skittish foreign portfolio investors. But those close to the administration claim there are signs of a shift in ideology within government: from the unbridled crony capitalism of the past to a more state-driven vision for promoting industry and jobs.

Industrial revolution
Mr Buhari’s initial instinct, said advisers, was to batten down the hatches, and pursue capital and import controls similar to those pursued by China in the 1980s, while gradually building up export capacity in sectors beyond oil.

The aim was to engineer the beginnings of an industrial revolution, create jobs and dedicate investment towards rebuilding infrastructure. Ethiopia, on the other side of the continent, has spurred the beginnings of an economic transformation using similar methods.

In Nigeria’s case, however, it could already be too late. The government’s ability to control the capital account — the deficit doubled to 3.7 per cent of GDP in 2015 — and restrict imports in a country rife with smuggling is questionable.

A Venezuela-style meltdown — once dismissed out of hand — now no longer seems such an outlandish prospect. Some observers argue that this doomsday scenario is forcing officials, including the president, to accept the need for a course correction.

“The bunker mentality has changed [in the past month] to a more open-to-discussion one” said Bismarck Rewane, chief executive of Financial Derivatives, a consultancy in Lagos.

“Even if the change [in policy] is involuntary, the combination of inflation, slowing GDP, exchange rate pressure and the drop in oil production . . . will bring change.”

Oil fight: Delta violence hits output Who are the Niger Delta Avengers? What do they want? How seriously should their threats to shut down Nigeria’s oil and gas sector be taken? The only question with an unequivocal answer is the third one.

Its leadership, backers and motivations remain unclear. But the devastating economic impact of the group’s sabotage campaign is plain to see. It has cut Nigeria’s crude exports by at least 850,000 barrels per day with attacks this year on pipelines and export terminals across the Niger Delta, home of the country’s oil industry, and no stranger to clashes over calls for a fairer distribution of oil revenues with the local community.

The shutdown in exports by the Avengers is not yet on a par with that of the militants of MEND at the height of the previous insurgency that ended with a ceasefire in 2009. But with state finances already severely strained by low oil prices, economists predict Nigeria will fall more quickly into recession unless the damage to energy infrastructure is repaired and the sabotage ends.

President Muhammadu Buhari has ordered army reinforcements to the Delta and threatened to treat the militants like the Boko Haram Islamists who have terrorised the north-east of the country. The comparison has angered many in the Delta who argue that, even if the sabotage damages the economy, it should be seen as a cry for attention.

“[Buhari] tends to see the Delta as a security issue . . . it’s about handling the ‘bad guys’,” says one western diplomat. “You hear almost nothing on the underlying grievances.”

The failure of the 2009 amnesty is one point over which the Buhari administration and many Deltans could find common ground.

“It was a bribe for peace,” said Charles Ekiyor, a former leader of the Ijaw Youth Council. The deal was supposed to include development of the impoverished region, he said. But under Mr Buhari’s predecessor, Goodluck Jonathan — who is from the Delta — it did not happen. Now the same grievances are being exploited by the Niger Delta Avengers.

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Mobile Internet Gender Gap Widest in Africa – GSMA

Published

9 hours ago

June 12, 2026

Chike Onwuegbuchi

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More than 810 million women across low- and middle-income countries (LMICs) remain offline, with Sub-Saharan Africa recording one of the world’s widest mobile internet gender gaps.

According to the GSM Association’s (GSMA’s) Mobile Gender Gap Report 2026, released this week, women in LMICs are still 12% less likely to use mobile internet than men, leaving an estimated 200 million fewer women connected than their male counterparts.

This is despite mobile internet becoming the primary gateway to the digital economy, according to new research from the GSMA.

The report reveals that of the 810 million women who remain offline globally, more than two-thirds live in Sub-Saharan Africa and South Asia −regions that continue to experience the widest disparities in digital access.

The findings highlight significant implications for Africa, and the challenges facing governments, mobile operators and development agencies seeking to expand digital inclusion.

The report notes that Sub-Saharan Africa’s mobile internet gender gap stands at 26%, second only to South Asia’s 25%. The divide becomes even more pronounced outside major cities.

“In LMICs, the gender gap in mobile internet adoption tends to be two to three times wider in rural areas than urban areas. In 2025, across all LMICs, the gender gap in mobile internet adoption was more than three times wider in rural areas than in urban areas.

“There is also a difference at the regional level, where the gender gap in mobile internet adoption is wider in rural than urban areas of LMICs in every region except Europe and Central Asia.”

For Africa, the rural challenge is particularly severe, the report warns.

The GSMA found that the gender gap in mobile internet adoption reaches 34% in rural areas of Sub-Saharan Africa, compared to 21% in urban centres.

Device challenge

Smartphone ownership remains a major obstacle to digital inclusion. The report found that women across LMICs are 13% less likely to own a smartphone than men, representing approximately 210 million fewer women with access to internet-enabled devices.

Across Sub-Saharan Africa, only 34% of women own smartphones, with the region recording a smartphone ownership gender gap of 22%, with access to internet-enabled devices remaining one of the most important factors influencing whether women eventually adopt mobile internet services.

“The type of mobile device a person owns matters, as it typically affects whether and how they use the internet. Once someone owns a smartphone, they are much more likely to be aware of mobile internet, adopt it and use it regularly and in a variety of ways. In fact, once women own a smartphone, these metrics more closely resemble those of men,” notes the report.

Barriers persist

Despite growing awareness of mobile internet and its benefits, women continue to face multiple barriers to meaningful participation in the digital economy.

The report identifies affordability, literacy and digital skills as the leading barriers preventing women from getting online.

Even after gaining access, women frequently report safety and security concerns, data costs and connectivity quality as obstacles to broader internet use.

The report notes: “Addressing rural gender gaps is essential to advancing digital inclusion for women overall. In particular, women who live in rural areas tend to have limited physical access to essential services and may have the most to gain from better access to mobile and mobile internet.

“Addressing gender gaps in mobile ownership, particularly of smartphones, and in mobile internet use can help women in rural areas benefit from these digital technologies to the same extent as men.”

Claire Sibthorpe, head of digital inclusion at the GSMA, warns that progress is not happening quickly enough and emerging technologies such as artificial intelligence risk creating new forms of digital exclusion.

“While there has been a slow narrowing of the mobile gender gap since 2022, much more is needed to address the persistent and significant gender gaps in mobile internet adoption and use.

“We live in an increasingly digital world and the proliferation of technologies such as AI are creating greater digital divides and inequities, elevating the need to ensure digital inclusion for all.”

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Payaza Secures ‘A’ Credit Ratings from Moody’s, Agusto, DataPro, Intelligence Africa

Published

3 days ago

June 9, 2026

Chike Onwuegbuchi

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Payaza Africa, a payments infrastructure company, has earned strong credit ratings from four major rating agencies, reinforcing its growing reputation as a resilient and credible player in Africa’s financial services ecosystem.

The payment company recorded upgrades across the board, with DataPro raising its rating from A to AA-, Intelligence Africa assigning it an A- investment-grade rating, Agusto upgrading it from BBB to A-, and GCR, an affiliate of Moody’s, also moving it from BBB to A-.

A credit rating reflects a company’s financial strength and its ability to meet debt obligations, indicating how safe it is for lenders and investors to extend credit.

In a statement on Monday, the company described the achievement as a validation of its disciplined growth trajectory and operational resilience in a dynamic fintech landscape. It added that the upgrades position Payaza as a future-ready brand with increasing relevance not only within Africa but also in the global fintech space.

Commenting on the development, Seyi Ebenezer, the Chief Executive Officer of Payaza Africa, said the ratings reflect years of deliberate effort to build a sustainable and globally competitive institution.

“This milestone is a strong affirmation of the work we have done to build Payaza on a foundation of discipline, trust, and long-term value creation. Receiving these upgraded ratings sends a clear message that Payaza is not only growing, but growing with strength, structure, and sustainability,” he said.

Ebenezer noted that the recognition goes beyond financial performance, highlighting the company’s ability to execute strategically while maintaining strong risk management practices.

“For us, this is bigger than recognition. It reflects our commitment to building a world-class institution that can compete globally while continuing to serve businesses and consumers across the continent with excellence.

“Over time, our ratings journey has reflected more than strong financial performance. It speaks to a business built on disciplined execution, prudent management, and the ability to scale responsibly in a dynamic market. This has helped us stand out not only as an innovator in digital payments, but as a maturing financial institution with the operational depth to compete globally.

“These new ratings are expected to further strengthen Payaza’s standing with investors, regulators, partners, enterprise clients, and the wider financial community. In a sector where trust, resilience, and compliance are increasingly central to long-term success, independent ratings remain a powerful endorsement of a company’s ability to manage risk, meet obligations, and sustain growth,” Ebenezer said.

Payaza Africa provides payment infrastructure solutions focused on collections, payouts, embedded finance, and digital commerce enablement for businesses across Africa.

The company has also continued to expand its product ecosystem with solutions such as Payaza Checkout for payment collections and payouts, Chat and Pay by Payaza for WhatsApp-based transactions, Payaza Give for donations and digital contributions, and Shopaza, its e-commerce platform designed to help businesses sell and receive payments more efficiently.

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London Strengthens Global Investment Ties with Africa @ First Ever London-Africa Business Summit

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1 week ago

June 5, 2026

Chike Onwuegbuchi

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The Mayor of London, Sadiq Khan, has today hosted City Hall’s first ever London-Africa business summit, bringing together 200 business and political leaders from across the continent to strengthen trade and investment ties between London and Africa.

Held in the heart of the City of London, the summit included the Minister of Trade for Agribusiness and Industry in Ghana and representatives from SOAS, the Nigerian Exchange Group, Ventures 54 and London Africa Network to showcase London as the global city of choice for African companies looking to expand internationally and attract investment.

The Mayor announced the summit during his 2025 trade mission to Nigeria, Ghana and South Africa, where he led a delegation to promote London as a global destination for investment. Since the visit, African businesses have invested more than £30 million into London through foreign direct investment.

117 African organisations are listed on the London Stock Exchange, spanning sectors from telecoms and finance to energy and technology. Companies include telecoms giant Airtel Africa and energy supplier Seplat Energy. By comparison, fewer than 20 African organizations are listed on the New York Stock Exchange, underlining London’s deep economic and cultural links with the continent.

The summit builds on growing economic momentum between the UK and Africa. Total UK-Africa trade reached approximately £52 billion in 2025 despite continued global economic uncertainty, while UK exports to Africa increased to nearly £26.2 billion, reflecting rising demand for UK goods and services across African markets.

Africa is increasingly recognised as one of the world’s most important long-term growth regions, driven by rapid urbanisation, infrastructure investment, population growth and expanding consumer markets.

The UK remains among Africa’s top 10 supplying markets and continues to strengthen trade relationships through agreements covering 18 African countries. There are also huge community links between the UK and Africa. The UK has the second largest Nigerian diaspora population, second only to the US, with an estimated 215,000 Nigerians living here.

The Mayor’s London Growth Plan identified the need to attract more foreign direct investment to help grow London’s economy by £107 billion by 2035 and support the creation of 150,000 good jobs by 2028. London continues to lead as the top destination for African foreign direct investment in Europe and the US, ranking second globally outside Africa behind only Dubai.

The summit also highlighted major opportunities for collaboration across sectors, including financial services, digital technology, education, healthcare, energy transition, infrastructure and the creative industries, with London well positioned to deepen its role as a strategic trade and investment partner for African markets.

The Mayor of London, Sadiq Khan, said: “I am proud to host City Hall’s first ever London-Africa business Summit, bringing together investors, entrepreneurs and businesses to showcase London as the best city in the world for African companies to expand internationally and attract investment.

“With more African companies listed on the London Stock Exchange than any other exchange, it is one of the most globally important growth regions. I am delighted that my African trade mission last year has encouraged both inward investment and outward expansion, creating jobs and further strengthening the links between us. I look forward to more opportunities developing from this Summit as we continue to build a better, more prosperous London for everyone.”

Mr. Mark Smithson, Country Director, UK Department for Business and Trade, Nigeria, and Anglo West Africa said: “The London-Africa Business Forum has brought together ambition, capital and creativity, reinforcing London’s role as a global gateway for African enterprise.

“As we look to the next chapter, we are deepening partnerships that drive sustainable growth, shared prosperity and long-term opportunity across both regions. In Nigeria, we are working closely with key partners, businesses and investors to unlock investment, create jobs and deliver tangible economic outcomes.”

Soren Nikolajsen, Managing Director, Industry Engagement Defence and Trade at Natwest said: “London remains one of the world’s leading destinations for international investment, underpinned by its deep financial expertise and global connectivity. Bringing together investors from across Africa in this way is a valuable opportunity to strengthen relationships, showcase the breadth of opportunity here, and support long-term, mutually beneficial growth.”

Olukorede (K.O.) Adenowo, Chief Executive Officer, FirstBank UK, said: “FirstBank UK is proud to support the strengthening of the Africa–UK corridor, where growing demand for capital and expertise continues to drive cross-border opportunity. London remains a powerful gateway for African businesses seeking to scale internationally, while Africa offers compelling long-term investment potential.

“At FirstBank UK, we are focused on supporting cross-border trade and facilitating capital flows by connecting clients to global markets and structuring bankable opportunities. Through stronger collaboration, we can unlock greater investment and deliver sustainable growth across both regions.”

Dylan Martin, Chief Executive Officer of Teybridge Capital said: “Our expansion in London marks an important milestone for Teybridge Capital Europe and reflects the strength of our growth in the UK market. With over 60 per cent of our client base in the UK, this was a natural step in deepening our presence on the ground and investing in a high-performance, locally based team to support our next phase of growth.”

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