E-Financial
Opinion: Will Nigeria Shock the Global Arena in H2?
The largest economy in Africa has certainly had a presence in the third quarter of 2017. Investors across the globe are becoming increasingly optimistic over Nigeria’s economic outlook, as the nation mitigates internal risks, while breaking away from oil reliance.
Signs of recovery and momentum can already be viewed across Gross Domestic Growth and falling inflation, while foreign exchange has experienced an evolution.
With the ingredients for Nigeria to rattle the global arena in H2 already bubbling in the cauldron, an economic rebound by the end of the year is becoming a firm possibility.
As we head into the final trading month of Q3, market players will closely scrutinise core data such as inflation and GDP, which have the ability to boost sentiment further, if both exceed market expectations.
Nigeria’s foreign exchange crisis remains an obstacle on the road to recovery. While the timely implementation of the Investors and Exporters (FX) Window is likely to boost confidence over Nigeria’s outlook, this is only the first step.
With the NAFEX increasing the supply of foreign exchange into the largest economy in Africa, investors are likely to be magnetized, consequently adding another layer of stability to the FX markets.
The Central Bank of Nigeria may be commended on its ability to unify some of their multiple exchanges, by letting dealers quote the Naira levels used in trades, but more transparency is still needed.
For Nigeria to abolish its multiple exchanges and truly have an official exchange rate, it will require an official devaluation, which President Muhammadu Buhari has repeatedly rejected.
While a devaluation of the Naira is likely to accelerate inflation and punish Nigerians at home, it will increase transparency and ultimately boost foreign direct investment, which could in turn fuel economic growth.
Speaking of the Naira, the local currency currently trades around 370 to the Dollar on the parallel exchange.
Although the implementation of NAFEX has weakened prices noticeably, the currency still continues to hold ground against a broadly weaker Dollar. Further intervention by the Central Bank of Nigeria, coupled with confidence over Nigeria’s economic recovery, is likely to support the local currency further this year.
Market players will continue to evaluate the Federal Reserve’s ability to raise US interest rates, which have the power to strengthen the Dollar – consequently punishing emerging market currencies.
While Nigeria has taken steps to shield itself from internal shocks, the threat of capital outflows from a resurgent Dollar is still an issue that cannot be overlooked. Focusing on the technical outlook, repeated Dollar weakness could send the USDNGN towards 350 on the parallel markets.
With inflation in Nigeria following a negative trajectory, economic fundamentals stabilizing and foreign exchange displaying early signs of transparency, the Central bank of Nigeria is likely to remain in sharp focus.
While the intricate combination of falling oil prices, decelerating economic growth and a currency crisis initially encouraged the CBN to remain on standby, the current economic landscape has morphed for the better.
The clock is ticking for the central bank to make a move with an interest rate cut, as cooling inflation and improving core fundamentals indicate signs of stability.
The outlook for oil remains a significant economic factor for Nigeria, especially when considering how the commodity impacts the nation’s government revenues and stability of foreign exchange markets.
WTI Crude has struggled to maintain gains in August, with prices pressured below $50, as the oversupply concerns weighed on sentiment. This has been an interesting and volatile period for oil markets, with the commodity trapped in a tough tug of war, as conflicting data attracts both the bulls and bears.
Despite OPEC’s optimism over the production cut deal continues to spark speculative boosts in prices, reports of compliance slumping in July and output jumping to a 2017 high in the same month, excited bears.
This battle of attrition may be coming to a finale, with oil’s bearish action suggesting that investors are becoming increasingly skeptical of the cartel’s ability to rebalance the markets.
Nigeria has the ability to bounce back from an economic deceleration and break away from oil reliance but the right steps must be taken.
The developments in August are already highly encouraging with the implementation of NAFEX increasing foreign exchange transparency and putting investors at ease. As we head into the final month of Q3, market players are likely to become more dependent on data to gauge the nation’s economic health.
Sentiment towards the Nigerian economy continues to improve amid the stabilizing fundamentals, with the Central Bank of Nigeria cutting interest rates to support growth further if all the boxes are ticked.
The Securities and Exchange Commission (SEC) has unveiled plans to make sustainability reporting mandatory for large public interest entities from 2027 as Nigeria moves to align its corporate disclosure framework with global environmental, social and governance (ESG) reporting standards.
The phased implementation will begin with voluntary adoption by early adopters and large public interest entities before becoming mandatory in 2027. The requirement will extend to other public interest entities in 2028 and small and medium-scale enterprises (SMEs) by 2030.
Dr Emomotimi Agama, Director-General of the SEC, disclosed this at the 2026 Financial Institutions Training Centre (FITC) Sustainability and ESG Conference 3.0 in Lagos, themed ‘Building a Sustainable Africa: Integrating Environmental Stewardship, Social Investment, and Strong Governance for a Prosperous Future’.
Agama said Nigeria’s sustainability disclosure regime is being aligned with the International Sustainability Standards Board (ISSB) framework, including IFRS S1 and IFRS S2, which have emerged as the global benchmark for sustainability reporting.
He said that institutional investors increasingly consider ESG performance a key determinant of capital allocation rather than a peripheral corporate responsibility issue, noting that the price of entry is disclosure.
He said the reforms would strengthen investor confidence and position Nigerian businesses to access global capital markets, where sustainability disclosures are becoming an essential investment requirement.
According to him, Nigeria’s capital market has recorded significant expansion, with market capitalisation growing from about N130 trillion to nearly N160 trillion following recent market reforms, while assets under management have surpassed N9 trillion.
To deepen sustainable finance, Agama said the commission was promoting infrastructure, green and municipal bonds, alongside infrastructure-focused investment funds, to mobilise long-term capital for critical national projects.
He added that the SEC would also encourage investments in the blue economy and support financing for the power sector through green energy bonds, project bonds and public-private investment structures.
The SEC chief cited the recent launch of the Nigerian Exchange (NGX) Impact Board as another milestone in advancing sustainable finance and urged companies, regulators and investors to move beyond commitments by embedding sustainability into governance, operations and investment decisions.
Managing Director and Chief Executive Officer of the Financial Institutions Training Centre (FITC), Dr Chizor Malize, said sustainability and ESG had evolved from compliance issues to core drivers of business competitiveness, investment decisions and economic development.
She said the conference, now in its third edition since 2024, had become a leading platform for advancing sustainability discourse in Africa, adding that this year’s gathering was designed to move stakeholders “from conversation to commitment”.
Chairman of the FITC Advisory Board, Prof Fabian Ajogwu, described governance as the foundation of sustainable development, arguing that Africa must become a standard-setter rather than merely adopting frameworks developed elsewhere.
Although Africa contributes less than four per cent of global greenhouse gas emissions, he said, the continent bears a disproportionate share of climate-related impacts, including worsening floods and increasingly erratic weather patterns.
Ajogwu also cited estimates that poor governance costs Africa between $88 billion and $90 billion annually, while highlighting technology-driven agricultural initiatives, including a partnership involving Morocco’s OCP Group and the Nigeria Sovereign Investment Authority (NSIA), as examples of practical models that should be replicated across the continent.
Delivering the keynote address, Chairman of the MTN Nigeria Foundation, Mosun Belo-Olusoga, said the debate over the relevance of sustainability and ESG had ended, with the real challenge now centred on implementation.
She observed that global investors increasingly evaluate businesses on governance quality, resilience and their ability to manage environmental and social risks, in addition to profitability.
Belo-Olusoga noted that despite contributing the least to global carbon emissions, Africa possesses vast arable land, abundant renewable energy resources and critical minerals required for the global energy transition.
She identified four leadership priorities for the continent: shifting from short-term performance to long-term value creation, replacing corporate philanthropy with strategic social investment, moving beyond regulatory compliance to responsible leadership, and strengthening collaboration among governments, businesses and development partners.
She also outlined five priorities for Africa’s ESG agenda over the next decade, including embedding sustainability into corporate strategy and governance, investing in human capital, mobilising indigenous capital through instruments such as green bonds and pension funds, strengthening institutional accountability, and fostering partnerships in renewable energy, digital technology and climate-smart agriculture.
“The defining challenge before Africa is not a shortage of vision; it is execution,” Belo-Olusoga said, urging governments to create enabling policies, businesses to integrate ESG into enterprise risk management, and financial institutions to develop innovative financing mechanisms that support a green and inclusive economy.
Nigeria’s Bank Verification Number (BVN) database expanded to 69.55 million as of July 5 2026 from 69.32 million in June 2026, according to latest data released by the Nigeria Inter-Bank Settlement System (NIBSS).
BVN is an 11-digit biometric identification system introduced by the Central Bank of Nigeria and managed by the Nigeria Inter-Bank Settlement System (NIBSS) to secure customer accounts and reduce fraud.
This means that BVN enrolments increased by 228,947 between June and July 5 this year.
With the BVN database standing at 67.8 million as of December 31, 2025, it also means that the database grew by 1.75 million between the end of last year and July 5, 2026.
Specifically, with less than 1.8 million BVN enrolments so far recorded for this year, it is looking highly unlikely that BVN registrations at the end of 2026 will come close to the 4.3 million total registrations recorded in 2025.
Analysts note that while the expansion in the BVN database last year was largely driven by the introduction of the NonResident Bank Verification Number (NRBVN) initiative, which enables Nigerians in the diaspora to do their BVN enrolment remotely, thereby removing physical barriers and boosting cross-border financial engagement, the Central Bank of Nigeria (CBN) in March this year, announced a revised BVN regulatory framework, that saw it introducing stricter controls on suspected fraudulent transactions, BVN enrollment, and data access within the banking system.
According to the regulator, the amendments to the BVN framework, which came into effect on May 1, 2026, were aimed at strengthening fraud monitoring, improving identity management within the financial system and safeguarding the integrity of banking transactions, by strengthening identity verification and ensuring that BVN registration aligns with legally recognised age thresholds.
Thus, under the revised BVN framework, the apex bank introduced a stricter age requirement for BVN enrolment, limiting registration to 18-year-old individuals and above.
Also, under the new framework, customers will only be allowed to change the phone number associated with their BVN once. The CBN further stated: “Under the new guidelines, financial institutions are required to establish and maintain a temporary watch-list for BVNs linked to suspected fraudulent transactions reported within the banking system.
“A BVN may remain on this temporary Watch-list for a maximum period of twentyfour (24) hours, during which the BVN owner shall be contacted to provide clarification regarding the identified transaction(s).”
Launched on February 14, 2014, by the CBN in collaboration with the Bankers’ Committee, the NIBSS, and the German firm Dermalog, the BVN scheme was designed to capture the biometrics of all bank customers and provide each with a unique 11-digit identification number that can be verified across the Nigerian banking industry.
Central Bank of Nigeria (CBN) has reaffirmed that the standard N100 banknote remains legal tender across the country, warning that its rejection by individuals, businesses and institutions violates the law.
The clarification follows reports that some members of the public have refused to accept the standard N100 note over concerns about its legal tender status following the introduction of the commemorative N100 banknote issued to mark Nigeria’s centenary.
In a statement signed by Mrs. Hakama Sidi-Ali, acting director of Corporate Communications, the apex bank stressed that “both the commemorative N100 banknote and the standard N100 banknote are valid legal tender and must be accepted for all transactions nationwide.”
The CBN explained that the commemorative N100 note was introduced to celebrate Nigeria’s centenary and did not replace the existing standard N100 banknote.
The CBN cautioned individuals, businesses, financial institutions and other economic agents against rejecting the standard N100 note, noting that such action contravenes the provisions of the CBN Act and undermines public confidence in the national currency.
It warned that appropriate enforcement measures would be taken against any person or organisation found violating the law.
The apex bank reaffirmed its commitment to protecting the integrity of the naira, maintaining confidence in all duly issued banknotes and ensuring the smooth circulation of currency across the country.
The CBN also urged members of the public to continue accepting and transacting with all banknotes legally issued by the Bank and advised anyone seeking further clarification to use its official communication channels.
Police Busts Syndicate Who Allegedly Stole N3Bn from Financial Institution
MTN Accelerates Network Expansion to Meet Surging Telecom Demand
Court Remands Akujobi, Ex Access over alleged Theft of N294.5m
TeKnowledge, Equinix Partner to Advance Nigerian Digital Infrastructure
NSIB Faults Runway Identification, Reveals Cockpit Disagreement in Asaba Jet Incident
Nigeria Launches FreeTV Nationwide
NASENI Moves to Digitize CCB’s 5m Assets Declaration and Operations
NRC, Ponzi Scheme Collapses Resulting Loss of Billions of Naira
Lebara Nigeria Launches Lebara Play, Africa’s First Telecom-Owned Micro-Drama Platform
CANAL+ Partners Samsung to Pre-Load DStv Stream on New Samsung TVs In Nigeria, Other African Countries
Telecom2 days agoFixed Wired Internet Market Lags as Mobile Gains Ground
News2 days agoStudy Reveals How Moniepoint is Powering Nigeria’s $11Bn Food Service Sector
Broadcasting2 days agoBON Establishes Six Ad Hoc Committees to Modernize Broadcasting
General News2 days agoCourt Adjourns Alleged Binance Tax Evasion Case over Settlement Talks
E-Business2 days agoNew NIMC Act Strengthens Data Protection, Privacy – Director
General News2 days agoXenophobic Attacks: OYC Threatens to Picket MTN Nigeria Offices
General News2 days agoAre We Entering a Fully Digital Financial Economy?
Telecom2 days agoNCC Advances Nationwide Rollout of 112 Emergency Number After NEC Approval