Finance
Nigeria’s economy still tied to Oil’s fortunes


By: Lukman Otunuga (FXTM)
The Nigerian economy was exposed to an array of risk factors during H2 ranging from severely depressed Oil prices, falling external reserves, geopolitical tensions, and prospects of higher US interest rates.
With economic growth staging a fragile rebound and heavy hitters such as the IMF even downgrading growth forecasts from 2.1% to 1.9%, some may feel Nigeria’s growth prospects remain quite discouraging.
Recent reports from the World Bank predicting growth to hover slightly below 2% due to an underinvestment in human capital is likely to rub salt into the wound.
With the recent decline in Oil prices negatively impacting government revenues and possible complications to properly enact the 2019 budget, all signs point to tough times ahead.
However, the fact that Nigeria remains on the path to diversifying away from Oil reliance suggests there is still some light at the end of this dark tunnel. It must be kept in mind that the largest economy in Africa has all the required ingredients needed to positively surprise global markets in the coming years.
With a population of near 200 million, a youthful workforce and an incredible abundance of natural resources that seem to be underexploited, agricultural development may be the medicine to Nigeria’s illness. If the nation is able to elevate the agriculture sector to a respectable point of self-sufficiency, this will be the first step in creating a stable and sustainable macroeconomic environment.
This is part of the government’s increased efforts to develop infrastructure to stimulate growth further.
The presidential elections in February will certainly be a double-edged sword for the Nigerian economy. Economic growth has the potential to expand next year thanks to increased government spending ahead of the elections. However, increased spending will inevitably rekindle inflationary pressures ultimately forcing the Central Bank of Nigeria (CBN) to re-evaluate its monetary policy stance.
While speculations were initially rife over the CBN cutting interest rates in an effort to support growth, rising interest rates in the United States and Dollar strength resulted in the CBN missing the window of opportunity. With the new minimum wage in Nigeria likely to stoke inflationary pressures and falling Oil prices weighing on the Naira’s peg against the Dollar, higher interest rates may be enforced to maintain reserves.
Focusing on foreign exchange, the Naira’s stability against the Dollar remains the product of repeated intervention by the CBN. Higher Oil prices during the third trading quarter helped the CBN defend the Naira against an appreciating Dollar. With market conditions changing drastically and Oil weakness currently a dominant market theme, the CBN may face difficulties supporting the Naira.
As we head into the final trading month of 2018, the outlook for the Nigerian economy is poised to remain heavily influenced by Oil prices, the Dollar, global trade developments and pre-election jitters. Although consumer prices in Nigeria eased in October to 11.26%, government spending, and the new minimum wage are seen rekindling inflationary pressures. With the Fed expected to raise interest rates in December, Nigeria is at risk of experiencing capital outflows. Oil prices remain gripped by concerns over excessive supply in the markets and fears of falling demand – themes that may translate to falling government revenues and vulnerable Naira exchange.
Investors will be keeping a very close eye on the pending GDP report for Q3 which should provide fresh insight into the health of the largest economy in Africa. Sentiment towards the nation could end the year on a positive note if economic growth during the third trading quarter meets or exceeds expectations
Finance
Tinubu Launches Personal Income Tax Calculator to Improve Compliance, Fairness
By ORJI ISRAEL


President Bola Tinubu has launched a Personal Income Tax Calculator to help Nigerians work out their tax obligations under the new tax law.
The tool is expected to make compliance easier and improve transparency in the system.
In a post on his X page, the president said the calculator shows how the recent reforms protect low-income earners while ensuring fairness.
“A fair tax system must never punish poverty or weigh down the most vulnerable. With the new tax laws I recently signed, taking effect from January 2026, we have lifted this burden and created a path of equity, fairness, and true redistribution in our economy,” Tinubu said.
Some months ago, he signed four major tax bills into law to bring Nigeria’s scattered tax system under one framework. These include the Nigeria Tax Administration Law, which sets out a uniform process for tax administration across federal, state, and local governments; the Nigeria Revenue Service (Establishment) Bill, which replaces the current Federal Inland Revenue Service Act with a stronger, more independent revenue agency; and the Nigeria Revenue Service (NRS) and Joint Revenue Board (Establishment) Bill, which creates a formal structure for cooperation between revenue bodies at all levels.
The introduction of the tax calculator, together with these reforms, is expected to reduce confusion for both individuals and businesses, while also making it easier for them to meet their obligations and contribute to national growth.
Tinubu added that the reforms are part of building renewed hope for the economy and urged Nigerians to trust in the country’s future for themselves and their families.


The Federal Inland Revenue Service (FIRS) says that no fewer than 1,000 companies, representing 20% of total eligible firms, have begun integrating its newly launched electronic invoicing (e-invoicing) system less than two weeks after it went live.
The FIRS e-invoicing platform, which went live on August 1, 2025, after a successful pilot phase that began in November 2024, was designed to modernise Nigeria’s tax administration, curb evasion, and enhance transparency in revenue generation. It also provides the FIRS with real-time visibility into commercial transactions, ensuring authenticity and completeness of invoices.
According to a statement by Dare Adekanmbi, special adviser on Media to FIRS Chairman Zacch Adedeji, at least 1,000 companies, representing 20% of more than 5,000 eligible firms, have already adopted the system and begun integrating with the FIRS platform.
Adekanmbi noted that the initiative, also known as the Merchant-Buyer Model, will be rolled out in phases. “Large taxpayers, which are companies with annual turnover of N5 billion and more, are expected to be the first to be onboarded on the platform,” he said.
FIRS revealed that MTN Nigeria was the first taxpayer to transmit live electronic invoices to the platform, while Huawei Nigeria and IHS Nigeria have concluded test transmissions and are expected to go live soon.
The agency added that the initial compliance deadline of August 1, 2025, has been extended by three months to accommodate companies currently facing onboarding challenges. The new deadline is now November 1, 2025.
Finance
NGX Boss, Umaru Kwairanga, to Chair Business Journal Fintech Roundtable 2025
By Our Correspondent


Dr. Umaru Kwairanga, Group Chairman, Nigerian Exchange Group (NGX) will Chair the 2nd Business Journal Fintech & Financial Inclusion Roundtable 2025 scheduled for Friday, August 29, 2025 at Oriental Hotel, Lekki, Lagos. Time is 10-am prompt.
The theme of the Roundtable is: Fintech & Financial Inclusion: The Opportunities & Challenges for Nigeria.
In a statement, Prince Cookey, Publisher/Editor-in-Chief of Business Journal Media Group said the choice of Umaru Kwairanga to chair the event is a reflection of his immense and chequered journey in the Nigerian economic system over the years.
“Dr. Umaru Kwairanga is a noted player in the Nigerian economy and financial services sector. Over the years, he has carved a positive niche in driving the narrative in national policy formulation, implementation and review. He remains a worthy point of reference and role model to current and future players in the Nigerian economy.”
Alhaji (Dr.) Umaru Kwairanga, Sarkin Fulani Gombe and Group Chairman, Nigerian Exchange Group (NGX), is a notable player in the Nigerian corporate world, a thorough-bred professional and a prominent community leader in Gombe State and the North East region.
He has served at the highest levels of the banking, pension, investment, manufacturing and commercial sectors of Nigeria’s economy. He is the current Chairman of the Nigerian Exchange Group Plc, Nigeria’ oldest stock exchange and also Chairman of Tangerine General Insurance Limited.
The NGX Chairman is also a Director on the Boards of First Bank Senegal Limited, Tangerine Apt Pensions Limited and the Group Managing Director of Finmal Finance Services Limited.
He is a past Chairman of Ashaka Cement plc and previously served on the Boards of Jaiz Bank Plc, Central Securities Clearing System Plc, Lafarge Africa Plc and First Bank Mortgages Limited to mention a few.
Professionally, Alhaji Kwairanga is a Fellow of the Chartered Institute of Stockbrokers, Chartered Institute of Directors of Nigeria, the Certified Pension Institute of Nigeria and the Abuja Commodities and Securities Exchange.
He is also a Council Member of the Chartered Institute of Stockbrokers; the Chartered Institute of Directors and he is the current President of the Certified Pensions Institute of Nigeria.
Kwairanga is a holder of the prominent traditional title of Sarkin Fulani Gombe and has led several initiatives for peace and development in Gombe State and the North East region in general.
He has also been involved in policy and strategy formulation in the public sector as a Member of the Vision 2020 Committee, the Presidential Advisory Committee on the Nigerian Industrial Revolution Plan and several committees of the Securities and Exchange Commission (SEC).
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