Nume Ekeghe in Bangkok, Thailand
The Africa Finance Corporation (AFC), the continent’s main infrastructure options supplier, yesterday introduced the appointment of the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso as Chairman of its Board of Directors. He succeeds the immediate-past Chair, Ireti Samuel-Ogbu, who served the Corporation meritoriously throughout her tenure and continues to function a board member.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele and Cardoso, yesterday wooed traders with commitments to maintain financial reforms, enhance the funding local weather and appeal to long-term capital because the federal authorities seeks to mobilise $78.5 billion for 65 tasks throughout key sectors of the economic system.
Also yesterday, the Dangote Group endorsed the federal authorities’s reforms, with its Group Chief Economist, Hassan Mammud, saying fiscal and financial coverage modifications had helped stabilise investments within the Dangote Refinery and different subsidiaries. He urged worldwide traders to spend money on Nigeria, describing the nation as an rising mannequin for different African economies.
At an traders’ discussion board in Bangkok, Thailand, held on the sidelines of the continued International Monetary Fund and World Bank Group Annual Meetings, the federal authorities’s officers outlined the federal government’s priorities, together with lowering inflation to single digits, addressing energy sector constraints, enhancing regulatory effectivity and offering clearer fiscal knowledge to help funding choices.
A brand new characteristic launched this yr was a deal room that designed to attach traders with key policymakers, information them by out there funding alternatives and reply questions on investing in Nigeria.
The initiative is meant to offer traders direct entry to related authorities officers and assist convert curiosity within the nation’s funding pipeline into precise commitments.
The pipeline includes 65 tasks requiring a complete of $78.5 billion, with power and transport accounting for nearly four-fifths of the funding requirement.
According to the mission breakdown offered on the discussion board, oil, gasoline and energy account for 25 tasks requiring $36.4 billion, whereas transport and maritime account for eight tasks valued at $25 billion.
Agriculture and agro-processing account for six tasks requiring $9.8 billion, whereas trade, manufacturing and mining comprise 17 tasks requiring $6.6 billion.
Technology, well being and concrete providers account for the remaining 9 tasks, with a mixed capital requirement of $700 million.
The authorities offered funding alternatives throughout totally different funding classes, from tasks requiring lower than $100 million to these needing $1 billion or extra.
The pipeline ranges from $1 million to $15 billion per mission, with a median capital requirement of $153 million. Of the 65 tasks, 48 require lower than $500 million, whereas 17, valued at a mixed $72.3 billion, require at the least $1 billion every.
The authorities can be searching for to strengthen investor participation by highlighting the protections out there to international traders.
These embrace permission for 100 per cent international possession in most sectors, full repatriation of capital and earnings with a Certificate of Capital Importation, double taxation and bilateral funding treaties, and Nigeria’s membership of the International Centre for Settlement of Investment Disputes (ICSID).
The funding framework additionally features a 5 per cent annual tax credit score on qualifying capital expenditure for 5 years underneath the Economic Development Tax Incentive.
Oyedele known as on traders to think about longer-term commitments, significantly as rates of interest start to say no and the relative attractiveness of fixed-income investments modifications.
He requested traders what the federal government wanted to do to encourage them to commit capital for longer intervals and shift from international portfolio funding to international direct funding.
“We know that, for example, as interest rates start to come down, fixed income may be less attractive, but actually, if you consider the risk and the reward, it remains attractive. But what is even better is that the Internal Rate of Return (IRR) for equity investment and FDI gets more attractive, and this is where we want to go to attract more patient capital,” he mentioned.
Speaking on the discussion board, Oyedele mentioned the federal government was strengthening collaboration between fiscal and financial authorities. He added that lowering inflation would assist decrease borrowing prices and ease strain on public funds.
“If I want to even just sound selfish from the fiscal side, whatever we do to bring inflation to a single digit, thereby creating the conditions for interest rate to also be single digits will save the fiscal side as of 2026 numbers more than $10 billion. So, this is this is a top priority for us,” he mentioned.
He added that the soundness and gradual appreciation of the naira had been serving to to average inflationary pressures.
“The good thing is because of the way the central bank has been able to help us manage the FX environment generally, we have seen the naira not only being stable but steadily appreciative, and the impact on that on inflation is downward, right? So, which is good.”
Oyedele mentioned the federal government would deal with 5 main areas of reform: agriculture, energy, inflation administration, regulatory effectivity and knowledge transparency.
On energy, he mentioned, “You cannot power a $1 trillion economy in darkness. It’s impossible.”
He defined that the federal government was analyzing market-reflective pricing, transmission challenges and effectivity within the electrical energy sector, which stay vital concerns for traders searching for to determine or increase companies in Nigeria.
On regulatory reform, Oyedele mentioned extreme regulation, unclear guidelines and administrative burdens imposed important prices on companies.
“We estimate that overregulation, regulatory burden, lack of clarity, and all of those excessive burden that we post on businesses actually are costing us more than the combined revenue from corporate tax, personal income tax and VAT combined,” he mentioned.
He added that the federal government was creating a framework for financial coverage to forestall the arbitrary introduction of recent guidelines, charges and licences.
On knowledge transparency, Oyedele acknowledged considerations in regards to the availability and consistency of Nigeria’s fiscal statistics, significantly the tax-to-GDP ratio. He mentioned the Ministry of Finance was finalising preparations to make related info out there and accessible on its web site.
“So, we are currently finalising all of that, and it will be available on the website of the Ministry of Finance, finance.gov.ng. It will be updated timely. It will be accessible. It will be credible,” he mentioned.
Cardoso, in his remarks, mentioned the federal government’s reforms had been starting to supply larger stability for funding and financial development. He emphasised that decrease inflation remained important to enhancing the welfare of odd Nigerians.
“The reason why we felt it was important to give ourselves this as a target is to recognise the fact that inflation is probably the biggest stance on the poor, and so it is critical that we bring it down to levels that are more manageable, rather than the situation where you feel okay, you’re lower double digits, and it’s okay. It isn’t okay,” he mentioned.
Cardoso mentioned inflation had declined from about 34–35 per cent to roughly 15 per cent, describing the discount as important however insisting that the central financial institution wouldn’t turn into complacent.
“Our medium-term target is to bring it down to single digits. Of course, as we embrace inflation targeting, that will obviously be a lot more open and transparent, and people will be able to have a clearer sense of the road of travel,” he mentioned.
He additionally pointed to Nigeria’s exterior reserves, which he mentioned had reached their highest stage in 18 years, describing them as a buffer in opposition to exterior shocks.
According to Cardoso, the reforms had helped Nigeria stand up to international pressures, together with the consequences of struggle and discussions round tariffs, whereas the change fee had remained steady and appreciated.
Responding to considerations that odd Nigerians had been but to really feel the advantages of the reforms, Cardoso mentioned the soundness offered by the insurance policies had helped forestall a worse consequence.
AFC Appoints Cardoso Board Chairman
The Africa Finance Corporation (AFC), the continent’s main infrastructure options supplier, yesterday introduced the appointment of Mr. Olayemi Cardoso as Chairman of its Board of Directors.
An announcement which introduced this yesterday, said that Cardoso brings in depth expertise spanning worldwide banking, funding administration, financial coverage and public sector management.
“Since assuming workplace as Governor of the CBN in September 2023, he has led a far-reaching programme of financial, financial-sector, and institutional reforms to revive macroeconomic stability, strengthen coverage credibility, and rebuild investor confidence in Nigeria’s economic system.
“Under his management, the CBN has carried out important reforms to Nigeria’s international change market, addressed longstanding international change obligations, strengthened financial coverage transmission, and enhanced institutional governance and transparency.
“The Bank has additionally concluded a recapitalisation programme for the banking sector, aimed toward strengthening the resilience and capability of Nigeria’s monetary system to help sustainable financial development.
“Prior to his appointment as Governor, Mr. Cardoso constructed a distinguished profession in worldwide banking and public service, together with a 12-year tenure as Chairman of Citibank Nigeria and repair as Commissioner for Economic Planning and Budget in Lagos State.
“In the latter role, he contributed to economic planning and fiscal management in one of Africa’s largest economies. He holds a degree from Aston University in the United Kingdom and a master’s in public administration from Harvard Kennedy School, where he also served on the Alumni Board,” it added.
It additional said that Cardoso’s appointment got here because the AFC continued to increase its function in financing and creating strategic infrastructure belongings that handle Africa’s infrastructure hole, speed up industrialisation and strengthen regional integration.
“His experience in financial sector reform, institutional governance and capital markets will provide valuable perspective on the Corporation’s strategic direction as it mobilises investment to unlock Africa’s economic potential,” it added.
President & CEO of AFC, Samaila Zubairu, was quoted to have mentioned: “We are delighted to welcome Mr Cardoso as our Board Chairman. He shares our conviction that Africa’s lasting stability depends on its productive capacity. His leadership will strengthen AFC as we advance The Africa We Build 2050, mobilising African capital to build the infrastructure and industries that create jobs, prosperity and dignity for our people. We also sincerely thank Mrs Samuel-Ogbu for her dedication and contribution to AFC’s board during her tenure.”
Commenting on the appointment, Cardoso mentioned: “A more productive Africa is a more stable Africa. AFC has the credibility and track record to mobilise capital and build the infrastructure and industries that drive transformation. I look forward to working with the Board, management and member states to advance The Africa We Build 2050. Our measure of success must be the productive capacity we create, the industries we enable and the jobs we support.”
Dangote Group Applauds FG’s Reforms, Says Policy Stability Boosted Confidence in Refinery Investment
The Dangote Group additionally endorsed the federal government’s reforms, with its Group Chief Economist, Hassan Mammud, saying fiscal and financial coverage modifications helped the Group stabilise its operations and enhance funding projections.
Mammud, who represented the President of the Dangote Group, Alhaji Aliko Dangote, on the discussion board, mentioned the transparency and credibility of financial coverage supported the group’s funding in its refinery funding.
He mentioned coverage consistency and incentives out there to companies working in an export-free zone had been vital components in constructing investor confidence.
“The transparency and the credibility we have seen in that has significantly enabled the Dangote Group to have good projections and was able to come out of the woods from his investment of about $20 billion in the refinery,” he mentioned.
Mammud urged worldwide traders to think about Nigeria, describing the nation’s reform expertise as a mannequin for different African economies.
“Please come into Nigeria, bring your investment. Nigeria is actually a symbol to other African countries now,” he mentioned.
Cardoso welcomed the group’s feedback, noting that the reforms had helped handle the challenges companies confronted when exporting at one change fee and importing at one other.
“The ability of Dangote to take bull by the horns and at least break that cycle and enter the value-added chain is one to be commended,” he mentioned.
The endorsement got here as the federal government sought to make use of the traders’ discussion board and its new deal room to current particular tasks, make clear funding situations and encourage traders to commit capital to Nigeria.
