The African Development Bank Group has announced the approval of a fresh $500m loan to the Federal Government of Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme, aimed at strengthening fiscal policies, driving energy sector reforms, and promoting climate action.

A statement issued by the Communication and External Relations Department official, Alexis Adélé, on Wednesday said the AfDB Board of Directors approved the loan during a meeting in Abidjan and that it covers fiscal years 2024 and 2025.

The statement read, “The Board of Directors of the African Development Bank Group, meeting in Abidjan, approved a $500m loan to the Government of the Federal Republic of Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme. The policy-based operation is for fiscal years 2024 and 2025.”

The programme will target three key strategic areas to drive Nigeria’s economic and energy reforms. First, it aims to deepen fiscal policy reforms by strengthening public financial management systems and enhancing the transparency and efficiency of government spending.

Secondly, the initiative will focus on energy sector reform, seeking to accelerate improvements in the power engineering sector. The goal is to reduce energy poverty, expand access to electricity, enhance sector governance, and attract greater private investment.

The programme also aims to advance energy transition and climate action by supporting the implementation of Nigeria’s energy transition plan. It will promote climate change adaptation and mitigation efforts and introduce energy-efficiency standards for electrical appliances across the country.

Speaking on the programme, the Director-General of the African Development Bank’s Nigeria Office, Abdul Kamara, said the second phase aims to stimulate inclusive growth by fast-tracking structural reforms in the energy sector while supporting progressive fiscal policy reforms to boost non-oil revenues and expand fiscal space.

“The second phase of the programme aims to stimulate inclusive growth by accelerating structural reforms in the energy sector, while supporting progressive reforms of fiscal policy to boost non-oil revenues and expand fiscal space. The new phase will consolidate and build on the achievements of the first phase,” he added.

The programme will also update Nigeria’s Nationally Determined Contribution for the 2026–2030 period, aligning the country’s climate commitments with global targets.

Direct beneficiaries include key government agencies such as the Federal Ministries of Power, Finance, and Environment, the Federal Inland Revenue Service, the Nigerian Electricity Regulatory Commission, the Debt Management Office, the Office of the Auditor General, and the National Climate Change Council of Nigeria.

Private sector actors are expected to benefit from an improved investment climate and expanded opportunities in energy projects across states, as the programme aims to foster public-private partnerships.

As of 31 October 2025, the AfDB’s active portfolio in Nigeria included 52 projects with a total commitment of $5.1bn. This latest support underscores the AfDB’s continued commitment to Nigeria’s economic governance reforms, sustainable energy transition, and efforts to create a more resilient and inclusive economy.

The Manufacturers Association of Nigeria has urged the Central Bank of Nigeria to further reduce interest rates to ease the rising cost of borrowing, which continues to stifle production and erode competitiveness in the manufacturing sector.

In its reaction to the outcome of the Monetary Policy Committee meeting held on November 24 and 25, MAN stated on Wednesday that it acknowledged the MPC’s decision to retain the Monetary Policy Rate at 27 per cent but stressed that the current lending environment remains “punitive for manufacturers.”

Following its 303rd meeting on November 25, the MPC maintained the benchmark rate at 27 per cent, adjusted the Standing Facilities Corridor to +50/-450 basis points, retained the Cash Reserve Ratio at 45 per cent for commercial banks and 16 per cent for merchant banks, and kept the liquidity ratio at 30 per cent.

The MPC also expressed satisfaction with improving macroeconomic indicators, noting what they called a “continued slowdown in inflation” and the “accelerated pace of disinflation,” which stood at 16.05 per cent in October.

But MAN cautioned that the prevailing conditions in the real sector demand more decisive easing. In his statement, Director-General of MAN, Segun Ajayi-Kadir, said the association “appreciates the decision of the MPC to halt the increase in MPR” but insisted that manufacturers had expected “a further reduction in the rate to reduce the cost of borrowing.”

Ajayi-Kadir noted that despite the improvement recorded at the last meeting, manufacturers still contend with borrowing costs “ranging between 30 and 37 per cent,” describing the rates as “high, restrictive, and damaging to competitiveness.”

He said, “The rate hinders production and reduces the competitiveness of the sector. While the emphasis on exchange rate stability and improved forex liquidity is crucial, it is essential to reduce the cost of funds to encourage borrowing for expansion and investment.”

The Association warned that persistent high lending rates would continue to limit manufacturers’ access to affordable credit, particularly those in the small and medium industrial cadre.

MAN added that the challenge was compounded by structural bottlenecks such as poor infrastructure, high logistics costs, erratic electricity supply, soaring energy costs, and insecurity, which it said “cumulatively raise production costs and weaken competitiveness.”

MAN urged the CBN and policymakers to strengthen monetary–fiscal coordination and pursue reforms that unlock industrial potential to sustain stability and drive inclusive growth. MAN said the CBN should “strengthen handshake with the fiscal authority to promote reforms capable of unlocking the full potential of the manufacturing sector.”

MAN also highlighted a series of recommendations aimed at positioning the sector for productive growth. It advised the CBN to “adopt a downward review of the rate in subsequent MPC meetings to lessen the burden of high borrowing costs and incentivise long-term investments,” particularly in capital-intensive sub-sectors.

MAN further recommended that the apex bank introduce additional policy instruments to facilitate credit flow to the real sector while the Federal Government strengthens fiscal discipline and scales up investments in roads, electricity, and logistics to boost supply capacity.

On exchange rate management, MAN urged the government to work closely with the Central Bank to stabilise the naira and manage potential risks linked to capital flight arising from the new MPC corridor adjustment “that will push banks to lend more.”

It also called for complementary fiscal measures that support industrial development, promote structural reforms in agriculture, manufacturing, and energy, and address inflationary pressures. The body added that insecurity in agricultural and industrial zones must be urgently resolved to stabilise raw material supplies and food output, stressing that “a secure environment is critical to sustained industrial growth.”

While commending the MPC for measures aimed at strengthening liquidity and encouraging lending, MAN said the government must seize the moment to drive credit-led growth in productive sectors. The Association urged the CBN to “monitor and evaluate the impacts of previous MPC decisions on credit access to the real sector” to inform future policy decisions.

MAN concluded by reaffirming its appreciation of the CBN’s efforts to stabilise the economy but maintained that stronger coordination between fiscal and monetary authorities remains essential to ensure that the MPC’s decisions translate into real sector gains, sustained growth, and broader economic development.

Bullish trading resurfaced on the Nigerian Exchange Limited on Tuesday, breaking a bearish run that had entered its sixth day as of Monday.

At the close of trading, the All-Share Index and Market Capitalisation rose by 0.10 per cent to 143,763.13 and N91.44tn, respectively, resulting in a gain of N94.47bn for investors.

Analysts maintained that sustained profit-taking had continued to pressure the overall performance of the local bourse, leading to bearish trading. The positive turn in the market also coincided with the decision of the Monetary Policy Committee of the Central Bank of Nigeria to hold the benchmark rate at 27 per cent at the end of its last meeting of the year.

The MPC also retained the Cash Reserve Ratio at 45 per cent for commercial banks and 16 per cent for merchant banks, and the 75 per cent CRR on non-TSA public sector deposits. The Liquidity Ratio was retained at 30 per cent, while the Standing Facilities Corridor was adjusted to +50 / -450 basis points around the MPR

Meanwhile, market sentiment on the NGX turned positive, as 26 advancers outweighed 20 decliners, yielding a favourable 1.3x breadth ratio. The stocks of NCR, Ikeja Hotel, Prestige Assurance, Eunisel, and Sterling Financial Holding Company led the gainers, while Caverton, Union Dicon, Sunu Assurance, Lasaco, and Mansard topped the losers’ list.

Sectoral performance was mixed, with banking posting the strongest gain at 0.56 per cent, followed by consumer goods (0.01 per cent), while insurance declined by 0.84 per cent. The Oil & Gas, Industrial, and Commodity sectors remained flat.

Despite the uptick in the market, trading activity weakened across all metrics. Volume contracted by 18.62 per cent to 556.15 million shares, transaction values dropped 34.04 per cent to N18.71bn, and deal count fell 18.29 per cent to 19,500.

Analysts at Cowry Asset Management said the downturn in trading activity reflected diminished institutional engagement through reduced block trades and subdued retail participation amid ongoing risk-averse sentiment.

The new Nigerian Tax Act, which comes into effect on January 1, 2026, has been hailed as containing reforms capable of transforming the nation’s economy, promoting equity among the populace, improving the financial capabilities of low and medium class workers while substantially bridging Nigeria’s age-long infrastructural gap.

To enforce compliance and effective implementation, some guidelines, including penalties for flouting the laws, have been put in place. Some of the penalties have been outlined below.

Failure to register

N50,000 for the first month of default and N25,000 for each subsequent month Failure to file returns VAT Returns.

N100,000 in the first month in which the failure occurs and N50,000 for each subsequent month Failure to keep books.

For a company, N50,000

Failure to grant access for the deployment of technology

N1,000,000 for the first day of default and N10,000 for each subsequent day of default.

Failure to use fiscalisation system

N200,000 plus 100% of tax due and interest at the prevailing CBN rate per annum.

Failure to deduct tax

40% of the amount not deducted

Failure to make attribution

N100,000 penalty

Failure to remit tax deducted at source or self-account

For failure to remit tax deducted is to pay the amount deducted, collected or withheld but not remitted. And administrative penalty of 10% per annum, and the interest at the prevailing CBN monetary policy rate.

For self-account under this act is liable to pay the tax not self accounted for, an administrative penalty of 10% per annum of the amount not self accounted for, an interest at the prevailing CBN monetary policy rate.

A person convicted of any of the offenses under this section shall be liable to imprisonment up to three years or a fine of not less than the principal amount due plus penalty of not more than 50% of the sum or both.

Failure to attend to demands, request or notices

N100,000 in the first day of default and N10,000 for every subsequent day where the default continues.

Any one who does not provide requested tax information, documents or records within the required time will pay an administrative penalty of N200,000 for the first day of default and N10,000 for each subsequent day where the failure continues.

A person who fails to or refuses to comply with obligations to submit information relating to legal arrangement, notice, rules, regulations, guidelines or circulars issued by the services or any other relevant tax authority is liable to an administrative penalty of N1,000,000 for the first day of default, in addition to 10,000 for each subsequent day of failure, other administrative penalties may apply as stated in any related notice, rule, regulation, guideline or circular.

Jet fuel price volatility is hitting airlines unevenly across global markets as weakening local currencies deepen cost pressures, according to new insights from the International Air Transport Association.

According to a statement issued by the body, “The first chart of the week, a decade ago, showed that jet fuel price declines had uneven impacts across economies due to fluctuations in local currencies against the US dollar.”

The situation has worsened over the past four years, with jet fuel prices swinging dramatically. The report noted that “jet fuel price volatility in USD has intensified, especially since 2020, driven by the pandemic-induced demand collapse, the post-pandemic recovery amid supply chain disruptions, and escalating geopolitical tensions.”

Countries whose currencies have weakened are now paying significantly more for fuel. The statement highlighted that “The most pronounced impacts are observed in Russia and Brazil, whose currencies have depreciated the most against the dollar since 2014.” Russia’s ruble has slid following the invasion of Ukraine and subsequent international sanctions, while “the Brazilian real has also suffered recently as expectations are high that the central bank will loosen monetary policy in spite of persistent fiscal woes and the detrimental effect of tariffs on the country’s external accounts.”

Even major economies have felt the pressure. “Although less pronounced than in Russia and Brazil, the EU, China, and India have all seen their currencies weaken against the US dollar since mid-2022,” the analysis stated. However, it also pointed out that “the dollar has lost around 10 per cent of its value this year against many currencies. The countries lucky enough to find themselves in the latter group have seen their fuel bills cheapen in local currency terms.”

Jet fuel remains one of the largest cost components in aviation. As emphasised by the statement, “Fuel costs make up close to 26 per cent of total operating expenses of airlines, alternating with labour as the largest cost category.” Additionally, “Approximately 55–60 per cent of all global airline costs are denominated in USD, compared to 50–55 per cent of revenues.”

This imbalance has direct consequences for profitability. The report explained that “Based on this, a one per cent appreciation of the USD against global currencies could reduce operating margins by about 0.1 percentage points, while a one per cent depreciation could improve margins by a similar amount.”

Hilal Takaful Nigeria Limited, a subsidiary of Cornerstone Insurance Plc, has appointed Mr Hassan Olanrewaju as its new Managing Director/Chief Executive Officer, effective immediately.

In a statement made available to The PUNCH, the firm said the appointment underscores its commitment to ethical insurance practices, innovation, and participant-focused service delivery.

According to the statement, Olanrewaju is a chartered insurance professional with over two decades of experience.

“Mr Olanrewaju brings a wealth of expertise spanning technical operations, business development, and strategic management. His career includes leadership roles at Mutual Benefits Assurance Plc, Great Nigeria Insurance Plc, Law Union & Rock Plc, and Oceanic Insurance Group, where he consistently delivered growth, operational efficiency, and market expansion. His deep industry insight and proven leadership make him well-suited to advance Hilal Takaful Insurance’s mission of offering ethical, innovative, and customer-focused solutions,” the statement read.

The Board of Hilal Takaful Insurance also expressed confidence in Olanrewaju, noting, “We believe Mr Hassan’s leadership will further strengthen Hilal Takaful’s presence in the Takaful ecosystem, driving greater impact, innovation, and excellence in service delivery.”

Speaking on his appointment, the new MD/CEO said, “It is a privilege to lead Hilal Takaful Insurance at such a defining time. I look forward to working with our dedicated team to enhance our offerings, deliver exceptional value to our participants, and uphold the ethical principles that are the cornerstone of our brand.”

Afreximbank has reaffirmed its commitment to scaling up intra-African trade, industrialisation, and value-chain development under the African Continental Free Trade Area, pledging stronger trade-financing instruments and deeper policy support to ensure that no African country is left behind in the rollout of the single continental market.

The assurances were given in Abuja on Monday by the Director of Trade Facilitation and Investment Promotion, Intra-African Trade and Export Development at Afreximbank, Dr Gainmore Zanamwe, during his address at the AfCFTA Public Sector, Private Sector, and Press Summit.

Zanamwe, in his address made available to our correspondent, said Afreximbank has deliberately designed a suite of innovative financing tools to unlock new levels of trade and investment flows across the continent.

“Afreximbank designed a range of financing and trade facilitation instruments to support intra-African trade and the AfCFTA,” he said. “We disbursed $20n between 2017 and 2021 in support of intra-African trade and investment, and we are on course to double this to $40bn by 2026.”

He highlighted two flagship interventions—the Global Facility for Intra-African Trade Champions and the Engineer, Procure and Contract Initiative—which he described as catalytic vehicles for building homegrown industrial champions and expanding Africa’s productive capacity.

Under INTRA-CHAMPS, Afreximbank provides financing, risk guarantees, advisory services, twinning, and ecosystem-building support to companies with the capacity to scale across borders. Zanamwe said the programme is already transforming Africa’s industrial landscape. “Today, INTRA-CHAMPS has helped catalyse the pan-African expansion of several major industrial players,” he noted.

He cited the Egyptian-born multinational ElSewedy Electric, which leveraged Afreximbank’s support to spread operations across more than 15 African countries, delivering power and infrastructure projects essential to continental trade. He also referenced the Dangote Group, one of Afreximbank’s longest-standing beneficiaries, which he described as “Africa’s most iconic industrial conglomerate,” with cement, fertiliser, and refinery operations now anchoring value chains across the continent.

According to him, these success stories show that African companies, when equipped with the right tools, can lead Africa’s industrial revolution. “We are not just financing trade,” Zanamwe said. “We are laying the foundation for industrialisation, competitiveness and sustainable prosperity.”

He emphasised that Afreximbank’s strong presence at the P3 Summit is an expression of its unwavering commitment to ensuring that the AfCFTA becomes fully operational.

“Our presence at this gathering—the P3 Summit—is a clear testament that Afreximbank is fully committed to making the single market under the AfCFTA a reality,” he declared. “We are committed to taking the AfCFTA from a mere legal instrument and using it to catalyse industrialisation and the development of regional value chains.”

He added that the bank will continue to deploy its trade finance and facilitation instruments to accelerate the implementation of the continental market. “Our mandate is to promote and facilitate African trade, and the AfCFTA provides the framework for doing exactly that,” he said.

Zanamwe admitted that the transition to a liberalised trade regime may present challenges, especially for countries adjusting to new tariff structures. To address this, he explained that Afreximbank and the AfCFTA Secretariat jointly established the AfCFTA Adjustment Fund, backed by a $1bn commitment.

Of this amount, $100m has been allocated to the Credit Fund for commercial projects, while $10m has been placed in the Base Fund to support policy reforms.

“The Credit Fund is fully operational, with $10m already disbursed,” he said. “Fundraising has been underway since April 2025, and the Base Fund is positioned to provide grants to eligible countries and compensate for temporary losses in tariff revenue. This ensures that no country is left behind and that the agreement can be implemented by all.”

The Afreximbank director also touched on trade standards, quality assurance, and export competitiveness—factors he said are essential to the success of the AfCFTA. He noted that the bank supported the development of the Africa Quality Policy and also participated in the review of the Nigeria Quality Policy, which seeks to improve the quality infrastructure and market readiness of Nigerian products.

However, he stressed that Nigeria must now strengthen its legislative and regulatory framework to unlock the full benefits. “For the ecosystem for food safety to work well, Nigeria needs to ensure that the National Quality and Food Safety Bill is passed and implemented,” he said.

According to him, passing the bill will give Nigerian producers access to safer and higher-quality inputs, help local manufacturers meet domestic and export market requirements, and strengthen Nigeria’s foothold in regional value chains. He added that the measure will also ensure that the African Quality Assurance Centres operating in Nigeria are viable and sustainable, enabling them to deliver greater value to exporters.

Throughout his address, Zanamwe repeatedly stressed that the AfCFTA represents a once-in-a-generation opportunity for Africa to industrialise, scale up production, and build regional prosperity. He urged governments, regulators, and private-sector players to maintain the momentum.

“The AfCFTA is Africa’s pathway to economic transformation,” he said. “But it will take collective commitment, bold reforms, and strategic investments to unlock its full promise.”

Ending on an optimistic note, he added: “The future of African trade is continental, integrated and industrialised—and the time to act is now.”