General News
Systematic Reopening of the Nigerian Economy by the PTF
By Chido Nwakanma
Eight months later, the arteries of the economy are pumping once again. Airports have reopened, bringing in 5,000 to 7,000 passengers daily. Schools have resumed, as have formal and informal markets. Machines are humming again in hitherto shut factories.
The full reopening of the economy after months of a lockdown that required careful management and phasing to reopen has brought relief. Nigerians are eager to get on with their lives. For the managers of the system, it was a delicate balancing act between health and economics. At times, it was akin to the famed chicken and egg scenario.
Caution governed the Presidential Task Force on COVID-19 in the management of the closing and opening of the Nigerian economy in the wake of the global pandemic. It has involved monitoring of local incident statistics and case numbers, international comparison, and trend analysis. It has been sequential and systematic and, importantly, data driven.
Many factors inform this extra caution. COVID-19 came into our shores through a visiting Italian businessman. It came against the backdrop of well-founded fears that Nigeria and other African countries could not cope with any widespread infection. Experts are currently trying to unravel how and why Africa escaped the feared doom.
Across the country, citizens now move freely to do their businesses. It was not so beginning 29 March 2020 when the PTF led the health authorities to announce the first lockdown.
It lasted 14 days during which the country banned interstate movements and imposed a curfew on Lagos and Ogun States as well as the Federal Capital Territory (FCT). The Federal Government ordered the full closure of all land borders and banned all large gatherings.
The ban on large gatherings affected many sectors of the economy from entertainment to religion and others in-between. Schools shut down with the more technically proficient turning to online lessons. Cinemas, restaurants, event centres and stadia all shut down.
The clampdown affected Lagos and Abuja the most for the simple reason that they had the most significant number of infections. Lagos has remained an epicentre of the incidence and spread of COVID19.
PTF then followed with two other shutdowns of less severity. At each stage, it eased the measures for each shutdown in line with what the figures and trends stated. For instance, while Europe and America are currently in the throes of a second round of the COVID-19, Nigeria’s incident numbers have remained low.
Health authorities in Nigeria worry about returnees for the Christmas period importing new cases into the country and the disregard of counsel on best practices to prevent infection by citizens in many cities across the country.
Opening of the economy followed even more caution and recommendations in the thematic areas the PTF established as a guide. These are movement, industry, labour, and community activities. Schools reopened, followed by the NYSC Orientation Camps. It was a significant test of its caution on mass gatherings.
As such, it followed the template of care and caution. Officials went round the states to certify the camps COVID-19 compliant. They then established COVID-19 testing facilities in each of the centres as well as the management of possible cases. It then lifted restrictions on outdoor sporting activities, including football, in consultation with the Ministry of Sports and Youth Development.
In recent times, PTF has increased the volume of its messaging on prevention practices. They include mandatory wearing of face masks in public settings, hand washing and sanitising routines, observing social distances of at least two metres between persons and limitations to the size of gatherings. No more than 20 people can stay together.
The PTF has since relaxed the restrictions on worship places. Worship places were a particular concern because of sensitivities around religion, but the intervention agency walked the tightrope skilfully.
Which comes first? The right to earn a living or the opportunity to stay alive in the first place?. Many a citizen fretted about the denial of the right to work, worship and gather during the restrictions.
Even in those periods, PTF allowed a window for the operations of banks, graduated opening of markets and shopping centres while exempting agricultural produce, petroleum products, manufactured goods, and essential services from the restrictions on movements. Logistics plays a central role in the chain of goods and services in the country.
With the international gateways now re-opened in select airports, Nigeria’s mandatory dual tests for incoming travellers is one of the strictest in the world.
Courtesy of the PTF, the Nigerian Centre for Disease Control (NCDC) and the Federal Ministry of Health, persons arriving Nigeria via the airport gateways must do a COVID-19 CPR test five days before boarding their flight. They then do a confirmation test in Nigeria on Day 7 after arrival.
The test represents one of the mitigation measures Nigeria has implemented to checkmate the spread (and importation) of COVID-19. Additionally, a recent travel advisory by NCDC has urged international travelers to suspend holiday plans to Nigeria unless deemed essential.
Even so, records on 2 December 2020 showed Nigeria had 67, 960 cases of COVID-19. Deaths stood at 1,177 persons. Hospitals had discharged 63,839 COVID survivors. By that date, Nigeria had done 779,708 tests.
The PTF has gradually unsealed the taps to allow the full blossoming of the economy. National Coordinator Dr Aliyu and the Chairman and Secretary to the Government of the Federation Mr Boss Mustapha continue to tread with caution even as they open up more and more of the economy.
Nigerians in the diaspora have petitioned Dr. Olubunmi Tunji-Ojo, minster of Interior, over passport printing in Atlanta and New York Consulates in the United States of America.
To this effect, the minister has approved and directed the Nigeria Immigration Service (NIS) to immediately deploy new printers to the passport offices in both cities.
These printers, according to him, are ready for installation. This short-term solution, he said, aims to resolve the current challenge promptly.
In a statement, the minister said that there is a new solution being implemented as a long-term plan that will usher in a streamlined passport regime, enabling Nigerians to apply for their passports with more ease.
Part of this plan includes the activation of a Passport Personalisation Centre in Abuja, which is scheduled to start in the next few weeks while also opening up more countries for the already-deployed contactless solution.
According to Tunji-Ojo, they are working round the clock, and none of the agencies is left behind.
“At the Nigeria Immigration Service, there has been an end-to-end automation of the passport application process and the introduction of the contactless application process, which has since been launched in Canada,” he said.
The Central Bank of Nigeria (CBN) said it has approved the release of the Nigerian Foreign Exchange (FX) Code and will officially launch the same on January 28, 2025.
The FX code serves as a guideline to the banking industry to promote ethical conduct of authorised dealers in the Nigerian Foreign Exchange Market (NFEM).
“The Bank will formally launch the Code at the CBN Head Office Auditorium, Abuja, on Tuesday, January 28, 2025,” the CBN said in a notice published on its website.
In a bid to strengthen the governance and transparency of Nigeria’s FX market, the CBN in November 2024 introduced revised guidelines for the Nigeria Foreign Exchange Market (NFEM).
A key feature of these guidelines requires the boards of banks, alongside their Chief Executive Officers (CEOs) and Chief Compliance Officers, to annually attest to the Nigeria FX Code of Ethics and Conduct. This attestation underscores their commitment to uphold market integrity and comply with all CBN-issued circulars and guidelines.
The revised guidelines aim to deepen the foreign exchange market following the consolidation of all official FX market windows. The circular, issued by Omolara Omotunde Duke, director of the CBN’s financial markets department, supersedes prior directives, including the operational changes announced on June 14, 2023, and earlier circulars dating back to 2017.
Under the new framework, authorised dealers must facilitate FX transactions for firms and individuals while ensuring compliance with regulations. These dealers are tasked with conducting due diligence, providing transparent pricing, and offering market access through digital solutions.
Furthermore, all legitimate FX transactions must occur exclusively through authorised dealers, while dealings with unlicensed intermediaries are strictly prohibited.
Bureaux de Change (BDC) operators are also included in the revised guidelines. Licensed BDCs are allowed to purchase FX from authorised dealers to meet customer needs, within the limits set by the CBN. Similarly, all FX transactions conducted by BDCs, International Money Transfer Operators (IMTOs), and authorised dealers must adhere to the terms of their licenses and the Nigeria FX Code.
Moniepoint Inc, one of Nigeria’s leading business payments and banking services platforms, has secured an investment from Visa, a global leader in digital payments.
The investment marks an important milestone in Visa’s commitment to advancing financial inclusion and shaping the future of digital payments while fostering SME growth across Africa.
Founded in 2015 by Tosin Eniolorunda and Felix Ike, Moniepoint (formerly known as TeamApt) has established itself as a leading financial platform for Nigeria’s vast network of small and medium-sized businesses (SMEs), offering an integrated suite of services, including digital payments, bank accounts, credit, foreign exchange (FX), and management tools.
The platform processes over 1 billion transactions monthly, with total payments volume exceeding $22 billion, enabling businesses to digitize their operations and thrive in Africa’s rapidly evolving economy.
With this investment, Visa supports Moniepoint’s mission to empower African businesses, further accelerating its growth and expansion across the continent. Moniepoint’s profitable and scalable business model, alongside its strong operational and financial track record, has positioned it as a transformative force in the African fintech ecosystem.
As Africa’s Fintech landscape continues to evolve rapidly, driven by a dynamic ecosystem and a focus on bridging the financial inclusion gap, Visa has been at the forefront of this transformation, putting its expertise and resources to work in support of the growth of African Fintech startups.
Tosin Eniolorunda, Founder and Group CEO of Moniepoint Inc., said: “We are thrilled to announce Visa’s investment in Moniepoint. Visa’s backing is a strong endorsement of our vision to digitize and support African businesses at scale.
“Together, we aim to deepen financial inclusion, enabling SMEs to access the tools and resources they need to thrive in an increasingly digital economy. Given that about 83% of employment across Africa is in the informal economy, we are very keen to widen access and participation in the formal financial system and drive economic growth across Africa.”
He continued, “Visa’s expertise in global payments and Moniepoint’s proven ability to serve African businesses make this partnership an exciting opportunity in shaping the continent’s economic future even as we pave the way for a more inclusive and dynamic financial ecosystem.
“We are delighted in joining forces with Visa to enhance the digital payment infrastructure, expanding financial services, and fostering innovation in Africa.”
Andrew Torre, Regional President, Central and Eastern Europe, Middle East and Africa at Visa, added: “Moniepoint has built an impressive platform that directly addresses the needs of Africa’s SMEs, a critical segment in enabling economic development.
“By making financial services and digital payments more accessible and efficient, Moniepoint is helping transform how businesses operate in Nigeria and beyond. We are excited to support their next phase of growth and innovation.”
“Visa’s investment in Moniepoint is the latest example of our long-standing commitment to advancing digital economies in Africa. We will enable even the smallest businesses to thrive through innovative payment and software solutions that allow SMEs to scale and open new revenue opportunities, while streamlining their operations.”
Moniepoint has experienced exponential growth since its founding in 2015, with revenues increasing by over 150% CAGR in recent years. The company’s efforts to expand access to financial services align closely with Visa’s mission of enabling individuals and businesses to thrive in the global economy.
Congratulating both parties, the Nigerian Investment Promotion Commission (NIPC) celebrates this strategic investment in Moniepoint, highlighting it as proof of Nigeria’s attractiveness for investors due to its favorable business climate.
Furthermore, the NIPC praised Moniepoint as an exemplar of Nigerian excellence contributing significant value to the global financial ecosystem. The Commission emphasized its commitment to supporting investors and fostering economic cooperation in finance and technology to help Nigeria reach its full economic potential.
This partnership combines Moniepoint’s local expertise and innovative business model with Visa’s global resources and capabilities. Together, Moniepoint and Visa aim to accelerate the digital transformation of African SMEs, driving financial inclusion and long-term economic prosperity.
Visa joins other notable investors including Development Partners International, Google’s Africa Investment Fund, Verod Capital, Lightrock, QED Investors, Novastar Ventures, British International Investment (BII), FMO (the Dutch entrepreneurial development bank), Global Ventures and Endeavor Catalyst in advancing Moniepoint’s mission to create a society where everyone experiences financial happiness.
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