E-Financial
Nigeria on Bumpy Road to Recovery; Foreign Exchange Reserves in Focus
By Lukman Otunuga, Senior Research Analyst at FXTM,
The Nigerian economy still remains on a rocky road to recovery in the face of depressed oil prices, US-China trade uncertainty and fears over decelerating global growth.
Although the nation’s GDP expanded 1.94% during the second quarter of 2019, it is unlikely to meet the government’s 3% growth targets this year. The International Monetary Fund (IMF) has projected Nigeria’s growth to expand 2.3% this year and 2.5% in 2020. Despite the ongoing push for economic diversification, 90% of foreign exchange earnings and 70% of government revenues are still attained from oil sales.
While the Central Bank of Nigeria can be commended on its effort to promote Naira stability, this has come at the expense of falling reserves which decreased to $42.1 billion in September. Much attention will be directed towards the pending foreign exchange reserves data for October scheduled for release on Wednesday. Further signs of reserves declining amid weak oil prices and intervention by the CBN is likely to weigh on the Naira.
Market mood brightens on trade deal optimism
The mood across financial markets continues to brighten after President Donald Trump said that Washington “was ahead of schedule” on a trade deal with China.
This encouraging news has certainly injected global equity bulls with a renewed sense of confidence as optimism increases that the two largest economies in the world will sign “phase one ” of the trade agreement soon. Shares across Asia are pushing higher on Tuesday amid the risk-on sentiment, after the S&P 500 hit an all time record high overnight on the back of trade hopes and prospects of lower interest rates by the Fed. The positive vibe from Asian markets should also support European stocks and potentially Wall Street later this afternoon.
Fourth time lucky? Johnson seeks snap election again
There was little to cheer about on Monday in Brexit news despite the European Union granting Britain a flexible three-month extension to the Brexit process until 31 January 2020.
Although this has prevented the UK from leaving the European Union on October 31 without a deal, it is simply kicking the can down the road. This sentiment is clearly being reflected in the British Pound which offered a fairly muted reaction to the third Brexit extension. With British lawmakers rejecting Prime Minister Boris Johnson’s plan for an early election in December, where do we go from here? While Johnson is expected to try again for an early election on Tuesday, history could repeat itself for the fourth time in two months. Until investors are offered proper direction and clarity on Brexit, Sterling’s rise may be capped below 1.30.
Dollar waits for FOMC meeting
The Dollar held steady against a basket of major currencies on Tuesday ahead of the FOMC meeting on Wednesday. With markets widely expecting the Fed to dish out another insurance rate cut in face of trade uncertainty and global growth concerns, much attention will be directed towards Jerome Powell’s press conference. Should Powell sound less dovish than expected, investors are likely to revaluate whether the Federal Reserve will cut interest rates in December.
Gold in the spotlight
Gold has stumbled into the trading week under pressure thanks to the improving market mood and risk-on sentiment. Given how prices are trading below the $1500 level, further downside could be on the cards in the short term.
However, investor expectations over the Federal Reserve cutting interest rates in October coupled with Brexit uncertainty should stimulate appetite towards the precious metal in the medium term. The longer-term outlook will remain influenced by US-China trade developments and global growth concerns. Although most remain cautiously optimistic over the two largest economies in the world signing a “phase one” trade deal, there is still room for disappointment as talks have fallen apart in the past. Focusing on the technical picture, Gold is tracking sideways on the daily charts but the breakdown below $1500 should open a path towards $1485.
Nigeria Deposit Insurance Corporation (NDIC) has begun the final phase of liquidation for the defunct Premier Commercial Bank, initiating the payment of liquidation dividends to verified creditors, nearly 25 years after the bank’s closure.
Premier Commercial Bank had its operating license revoked by the Central Bank of Nigeria (CBN) on December 20, 2000, following findings of financial instability and regulatory non-compliance.
Since then, the NDIC has overseen the bank’s liquidation process under a winding-up order from the Federal High Court, which designated the corporation as the official liquidator.
In a public announcement, the NDIC invited all eligible creditors to visit any of its zonal offices between June 2 and June 27, 2025, to verify and claim their entitlements.
This move marks a critical milestone in the final settlement of claims related to the bank’s collapse.
To facilitate the verification process, creditors are required to present proof of deposit or shareholding, such as a passbook, chequebook, term deposit certificate, or bank statement.
Additionally, valid identification documents must be submitted, including a driver’s license, international passport, national identity card, NIN slip/card, voter’s card, or a formal identification letter from a traditional ruler or local government chairman.
The NDIC assured the public that the ongoing settlement is part of a broader effort to bring closure to longstanding claims resulting from Premier Commercial Bank’s liquidation. The process, according to the corporation, has been designed to ensure efficient disbursement to all verified stakeholders.
Premier Commercial Bank is one of 53 deposit money banks whose licenses were revoked by the CBN between 1994 and 2018 due to various violations and signs of financial distress.
These closures were followed by legal procedures appointing the NDIC to manage asset recoveries and creditor settlements.
By initiating this final phase of payment, the NDIC is reaffirming its commitment to financial system stability and depositor protection while calling on all affected individuals and institutions to complete verification processes promptly to receive their due compensation.
Securities and Exchange Commission (SEC) has directed all public companies and Registrars to stop treating unclaimed dividends older than 12 years as “statute-barred”, especially those dating from before the enactment of the Finance Act 2020.
The directive reaffirms the provisions of Section 60 of the Finance Act, which mandates that dividends unclaimed for over six years be transferred to the Unclaimed Funds Trust Fund (UFTF), where they remain accessible to shareholders pending claims.
The Commission said that shareholders are entitled to continue to claim their dividends that are not statute-barred (that is not above 12 years) before December 31, 2020 “when the Finance Act 2020, came into effect.”
According to the SEC in a Circular, “The attention of the Securities and Exchange Commission has been drawn to the fact that paying companies and their Registrars have continued to treat unclaimed dividends of public companies that are older than 12 years as being “statute-barred” without recourse to the provisions of the Finance Act 2020.
“In response to various inquiries on the subject, the Commission hereby clarifies as follows: The import of the provisions of Section 60 of the Finance Act 2020 (December 31, 2020), is that, where dividends declared by a public company quoted on the Nigerian Exchange Limited remained unclaimed for a period of six years or more, such dividends are expected to be transferred to the Unclaimed Funds Trust Fund (UFTF) to be held in trust and managed pending when the shareholder presents a claim for such unclaimed dividends.
“Pending the setting up and operationalisation of the UFTF by the Federal Government, pursuant to its powers under Sections 3 (4) (e) and 93 of the Investments and Securities Act 2025, the Commission hereby directs public companies and their Registrars to continue to honour all requests by shareholders for the payment of unclaimed dividends as described above, with effect from December 31, 2020”.
The Commission therefore directed public companies and Registrars to effect immediate compliance with the directive and submit periodic reports on same in the manner prescribed in the Commission’s Rules and Regulations.
Federal Inland Revenue Service (FIRS) has revised its Standard Operating Procedure (SOP) as part of efforts to improve consistency, transparency, and service delivery in tax administration across the country.
According to a statement on Monday in Abuja by Mr. Collins Omokaro, Special Adviser on Communication Strategy and Advocacy to the Executive Chairman of FIRS, the revised SOP offers a unified framework for core tax processes including registration, payment, audit, and enforcement.
“This is about people, experience, and impact. It’s a step toward a tax system that supports voluntary compliance and national development,” Omokaro said.
He explained that while FIRS field offices have long operated with good intentions, inconsistent methods across different locations often created confusion for taxpayers.
The revised SOP, he said, is designed to eliminate such disparities by providing a single, clear roadmap for operations in all of the Service’s over 300 offices nationwide.
More than just a procedural manual, the new SOP is described as a statement of institutional direction, reflecting values that define the future of the Service.
Omokaro quoted Dr. Zacch Adedeji, executive chairman of FIRS, as saying that “This SOP is not just a technical document—it is a declaration of who we are becoming as a service. It reflects our commitment to transparency and service to the Nigerian people.”
The SOP update is one component of a broader reform agenda underway at FIRS, which aims to transform the agency into a fully service-oriented institution.
The changes are also aligned with the ongoing digital transformation within the agency, which is intended to harmonize human and technological systems for faster, more reliable, and taxpayer-friendly service delivery.
Internally, the SOP is expected to enhance operational efficiency and provide a foundation for improved staff training, clearer guidance, and stronger evaluation systems. Omokaro noted that every FIRS employee is expected to study, implement, and embody the procedures outlined in the new document.
“With this rollout, every FIRS staff member has a clear mandate: study it, apply it, and embody it. That’s how we’ll earn the trust of Nigerians,” he said.
The SOP reform is being introduced as part of the Service’s broader mission to reposition itself as a modern tax authority grounded in accountability, consistency, and a shared sense of national purpose.
The move comes as the FIRS continues to modernize its processes, improve tax collection efficiency, and foster a culture of voluntary compliance—all aimed at strengthening revenue mobilization to support Nigeria’s development agenda.
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