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.
E-Financial
Zenith Banks Leads as 8 Banks Suffer N156Bn Impairment Charges

Eight leading Nigerian banks collectively set aside N156 billion as impairment charges on their credit and financial assets, marking a significant financial impact amidst a challenging economic environment, in the opening quarter of 2025.
Known commonly as loan losses or credit impairments, these charges highlight the banks’ defensive measures against risks arising from inflation, naira depreciation, and tightened liquidity affecting consumers and businesses alike.
The level of impairment varied considerably across institutions, reflecting divergent risk appetites and credit management practices.
Zenith Bank led with the highest provision of N49.38 billion, an 11.8 percent reduction from the previous year’s N55.97 billion.
This decline may suggest enhanced asset quality or more rigorous loan recovery tactics.
Broken down, loans and advances contributed N35.95 billion to impairments, while investment securities and treasury bills added N7.1 billion and N2.16 billion respectively.
Despite heavy provisioning, Zenith recorded a notable 20.7 percent increase in post-tax profit, soaring from N258.34 billion to N311.83 billion.
Similar trends emerged at First HoldCo, which posted N37.25 billion in impairment (down 11.2 percent), driven mainly by loans and advances provisions of N41.23 billion.
Offsetting this were write-offs and reversals that mitigated losses.
First HoldCo’s profit, however, fell to N171.10 billion from N208.11 billion.
Access Holdings and Guaranty Trust Holding Company also demonstrated reduced impairment charges, indicating stronger credit monitoring.
Access’s net provision dropped 4.5 percent to N21.77 billion, while Guaranty Trust’s impairment stabilized near last year’s N13.42 billion figure.
Yet, Guaranty Trust’s profit plunged 43.6 percent to N258.03 billion, a striking contrast to other banks’ profit growth.
On the other hand, United Bank for Africa (UBA) faced a staggering 332.2 percent surge in impairment, from N3.28 billion to N14.18 billion—pointing to amplified credit risks possibly driven by external economic pressures.
Nonetheless, UBA recorded a 33.1 percent profit uptick to N189.84 billion.
FCMB’s impairment charge fell notably by nearly 60 percent to N9.52 billion, aided by significant recoveries of previously written-off loans, boosting its profit to N32.23 billion.
Meanwhile, Fidelity Bank and Wema Bank posted sharp rises in impairment—285.8 percent and 64.7 percent increases respectively—reflecting heightened write-downs that underscore growing risk exposure amidst portfolio expansions.
Overall, while the cumulative impairment charge diminished by 5.2 percent compared to Q1 2024, individual bank results were mixed, embodying the varied strategies and external pressures in Nigeria’s banking sector.
E-Financial
SEC Flags FF Tiffany as Ponzi Scheme

Securities and Exchange Commission (SEC) has revealed plans to commence investigation into the activities of an entity operating under FF Tiffany, allegedly running a fraudulent investment scheme that has defrauded citizens.
A statement by SEC on Tuesday in Abuja said preliminary information revealed that the scheme, which promised investors unusually high and unrealistic returns, had resulted in the loss of several billions of naira.
The SEC said it viewed the activity as a threat to investor confidence and the overall integrity of the financial system.
The commission assured the public that it was working closely with law enforcement agencies and other relevant bodies to bring everyone involved in the unlawful operation to justice.
According to SEC, those found culpable will be prosecuted in accordance with Investment and Securities Act (ISA) and regulatory provisions.
SEC reiterated its earlier warnings to the general public to desist from engaging in Ponzi or unregistered investment schemes that promised guaranteed or exaggerated returns.
”These schemes are not registered with the SEC and do not offer investor protection under the law.
“The commission is currently investigating 79 schemes and will make a statement on its findings at the conclusion of the investigation,” the SEC said.
The commission encouraged investors to conduct due diligence and verify the registration status of any investment firm or product by visiting the SEC website or contacting the commission directly through official channels.
SEC said it remained committed to its mandate of protecting investors, ensuring fair practices, and maintaining confidence in Nigeria’s capital market.
E-Financial
AccionMonie App to Empower Low-Income Households

Accion Microfinance Bank has unveiled AccionMonie, a next-generation digital financial services platform aimed at empowering individuals, micro, small, and medium enterprises (MSMEs), as well as low-income households across Nigeria.
Speaking at the official launch in Abuja, Chief Executive Officer of Accion MfB, Taiwo Joda, described the introduction of AccionMonie as a significant milestone and a testament to the bank’s culture of innovation, designed to meet the evolving needs of its customers.
“At Accion Microfinance Bank, we believe in the potential of every MSME to drive inclusive economic growth. That is why we are committed to empowering them with the financial support they need to grow, innovate, and make a lasting impact in their communities and beyond,” Joda said.
He added that the app provides instant access to essential services including loans, savings, and other forms of financial support.
According to Joda, AccionMonie is a strategic component of the bank’s “Always There to Lend You a Hand” campaign, which underscores its commitment to small business development and the economic upliftment of underserved households. The campaign positions Accion MfB as not only a financial institution but also a trusted partner in its customers’ journey to prosperity.
Highlighting the economic role of MSMEs in Nigeria, he noted that with an estimated 37 million MSMEs, the sector accounts for 86% of employment and contributes 48% to Nigeria’s Gross Domestic Product (GDP). However, these enterprises continue to face major challenges such as limited access to finance, inadequate infrastructure, and an unfavourable business environment.
Also speaking at the launch, the bank’s Chief Commercial Officer, Stephen Olalere, said the combination of AccionMonie and the bank’s expansive network of over 74 branches across 12 states will help bridge the gap in financial service delivery to small businesses.
“The platform’s user-friendly features are designed to simplify payments and offer vital support to businesses and individuals alike,” he said.
Paul Ehiagbonare, Chief Digital Officer of the bank, described the launch as a bold step toward digital leadership and financial empowerment.
“For us, AccionMonie reflects customer empowerment through digital tools and technologies. It offers a range of customer-focused features designed to promote financial inclusion,” he said.
One of its standout features is Save2Loan, which allows users to save between ₦50,000 and ₦250,000 over a 90-day period and become eligible for a loan worth twice their saved amount. This, Ehiagbonare explained, will help promote a savings culture while enhancing credit access.
In addition, customers can conveniently fund their AccionMonie accounts using any debit card, eliminating the need for physical visits or long queues in banking halls.
- Telecom2 days ago
NCC Introduces N10m Licence Fee for Bulk SMS Service
- Telecom2 days ago
MTN Nigeria Targets $1Bn Cloud Market with Largest Modular Data Centre
- General News2 days ago
Woodhall Capital and Partners Launch ₦1.5Bn Fund
- E-Business2 days ago
Firm Highlights Top Risks of Quantum Computing
- General News2 days ago
Burna Boy Distances Himself from Meme Coin, Labels Crypto as Fraud
- Telecom2 days ago
PAT Taps Osi as CEO
- E-Financial2 days ago
Africa Launches PAPSSCARD, First Pan-African Card Scheme
- News2 days ago
Experts Urge MSMEs to Build Strong Partnerships in Solving Problems,