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Business Insider
5 days ago
- Business
- Business Insider
Navigating headwinds: Nigeria's economic outlook for H2 2025
As the second half of 2025 begins, Nigeria finds itself at a critical economic crossroads. With mixed signals emerging from both global and local environments, policymakers, business leaders, and financial institutions must prepare for a delicate balancing act. From shifting geopolitical dynamics to domestic fiscal pressures, the outlook for H2 2025 is characterized by uncertainty but also opportunity. FSDH's latest macroeconomic update, titled 'Balancing on the Edge in a Fragile World,' provides timely insights into what lies ahead and how stakeholders can navigate this complex terrain. Globally, two major developments have reshaped the economic outlook: the return of Donald Trump to the U.S. presidency and the escalation of the Israel-Iran conflict. Trump's reintroduction of import tariffs—10% across the board, with additional levies on selected countries—has renewed global trade tensions, undermined multilateralism, and triggered capital flow reversals to emerging markets. Meanwhile, the Middle East conflict has disrupted oil supply routes, increased freight costs, and spurred volatility in global commodity prices. These external shocks have led the International Monetary Fund (IMF) to revise its global GDP growth forecast downward to 2.8% in 2025, from an earlier 3.3%. Although Sub-Saharan Africa is expected to grow by 3.8%, driven by structural reforms and improved export performance; however the region remains vulnerable to external shocks, especially in energy markets and financial flows. Domestic Realities: Falling Short of Oil Expectations Nigeria, still heavily reliant on oil, has felt the weight of these developments. Despite commendable efforts to diversify her export base, oil remains the lifeblood of government revenue. The Federal Government's ₦54.99 trillion 2025 budget was benchmarked at US$75 per barrel and 2.06 million barrels per day in production. However, actual performance in H1 2025 has fallen short, with oil prices averaging US$72 per barrel and production consistently below target. This has created a growing fiscal gap and raised questions about Nigeria's ability to meet her ₦35 trillion revenue projection. Positive Signs: PMI Growth and Inflation Tapering Despite these challenges, there are positive signals in the local economy. The Purchasing Managers' Index (PMI), a reliable indicator of economic activity, remained above 50 points between January and May 2025, indicating expansion in key sectors such as agriculture, industry, and services. Inflation, while still high, has begun to decline—from 24.5% in January 2025 to 23% by May 2025—thanks to the combination of improved food supply, relative exchange rate stability, and methodological adjustments by the National Bureau of Statistics. Exchange Rate Stability: Progress or Pause? Exchange rate dynamics have also shown signs of stabilisation. The Naira stood at ₦1,539/US$ as of June 2025, reflecting only a marginal 0.2% depreciation year-to-date. The 'willing buyer, willing seller' FX policy has improved transparency and market confidence, although Nigeria's external reserves declined by 8.5% in H1—from US$40.9 billion to US$37.3 billion—due to rising import bills and debt repayments. FSDH projects that exchange rate stability will depend on continued FX inflows, investor confidence, and fiscal discipline. With oil prices expected to hover around US$75-US$78 per barrel, maintaining production and boosting non-oil exports will be critical. Analysts caution that a renewed slump in oil output or a further deterioration in global trade conditions could reignite currency volatility. Fiscal Reform in Focus: Tax Administration Shake-Up A major turning point in H1 2025 came in June, when President Tinubu signed four transformational tax reform bills into law. These include the Nigeria Tax Act, Nigeria Tax Administration Act, Joint Revenue Board Act, and Nigeria Revenue Service Act. Collectively, these reforms aim to harmonise tax administration, improve compliance, and empower a new, independent national revenue service. Highlights of the reforms include raising the Capital Gains Tax for corporates from 10% to 30%, introducing a Development Levy on large firms, zero-rating VAT for essential goods, and exempting small businesses with under ₦100 million turnover from filing taxes. The reforms are expected to grow Nigeria's tax-to-GDP ratio from 10% to 18% within three years. While implementation remains a hurdle—especially at state and local levels—this marks a significant shift in Nigeria's revenue strategy. In the capital markets, optimism is quietly building. The Nigerian Exchange (NGX) posted a 16.6% year-to-date return as of June 2025, outperforming many global indices. Banking and consumer goods stocks led gains, buoyed by strong corporate earnings and macro reforms. Treasury Bill yields and long-term bond rates have declined, signaling renewed investor appetite for Nigerian assets. Foreign Portfolio Investments (FPIs) flows have increased significantly, hitting US$5.46 billion in Q1—a 67% jump from the previous quarter. This resurgence has been fueled by FX reform, positive real interest rates, and improved clarity on policy direction. However, the risk of 'hot money' outflows remains, underscoring the need for deeper, longer-term capital investments. Strategic Priorities for H2 2025 Looking ahead, FSDH outlined several strategic imperatives for economic stakeholders in H2 2025. First, there is an urgent need to boost oil production, not just to meet budget benchmarks, but to enhance export earnings. Second, the country must deepen its non-oil export capabilities, especially in agriculture and manufacturing, to diversify FX sources. Third, unlocking private-sector credit by reducing the high Cash Reserve Ratio (CRR) remains key to real sector growth. Fourth, leveraging ongoing tax reforms to enhance state-level revenue and improve the business climate is vital. Importantly, Nigeria's digital economy and financial technology space also hold promise. The integration of AI, open banking frameworks, and digital payment systems are transforming how financial services are delivered. FSDH notes that institutions that embed digital transformation into their service models will lead in agility, customer retention, and market expansion. Cautious Optimism: Nigeria's Path Forward While global risks remain—from U.S. monetary policy to geopolitical tensions and potential oil shocks—Nigeria has the tools to stay on a path of gradual stabilisation. The success of H2 2025 will depend on disciplined execution of reforms, coordinated fiscal and monetary policy, and institutional accountability. Nigeria's economic outlook for the rest of 2025 is cautiously optimistic. Inflation is expected to decline further which may allow for monetary easing later in the year. The Naira is likely to remain within the current range, while GDP growth will be modest, driven by agriculture, services, and rising investor interest. Structural reforms are beginning to take root, but the second half of the year will require political will, macroprudential discipline, and bold leadership. And as FSDH aptly notes in its report, 'Resilience is not just about surviving the storm; it's about building structures that thrive within it.' Nigeria has the opportunity to prove that in H2 2025.
Bloomberg
5 days ago
- Business
- Bloomberg
Nigeria MPC Member Sees ‘Undervalued' Naira Rallying This Year
The Nigerian naira is undervalued and expected to rally this year amid improvements in fiscal and monetary conditions, according to a member of the central bank's monetary policy committee. The currency is projected to 'appreciate to 1,450 naira per dollar by the end of 2025,' from 1,535.50 at present, Murtala Sagagi said after a May 20 committee meeting, the central bank said in statement published on its website. 'The value of the naira has been relatively stable even though it is still considered undervalued,' he said.
Yahoo
14-07-2025
- Business
- Yahoo
AEON expands Web3 mobile payment solution to Nigeria
AEON, the cryptocurrency payment framework, has expanded its Web3 mobile payment solution, AEON Pay, into the Nigerian market. AEON Pay now enables users in Nigeria to conduct transactions with local merchants by integrating support for local bank transfers within its Telegram miniapp and decentralised applications (dApps). It allows Nigerian consumers to make purchases in Naira (NGN) with their preferred cryptocurrency and wallet for payment, eliminating the need for manual cash-outs or the use of centralised exchanges. AEON Pay will oversee the conversion of digital assets and initiating a bank transfer to the merchant's account. The service is compatible with the Nigeria Inter-Bank Settlement System (NIBSS), which provides the infrastructure for interbank settlements and digital payments. AEON Pay is accessible through various platforms, including Telegram MiniApps, wallet dApps, and crypto exchanges. AEON has now reached beyond its initial focus in Asia, with future plans to adapt to financial systems in Latin America. 'This launch signals AEON's official entry into Africa', the company said in a statement. In November last year, AEON introduced an authorisation payment feature on the TON blockchain to enhance the utility of blockchain technology in everyday financial activities. AEON's payment protocol is designed to set a new standard for crypto payments by linking Web3 infrastructure with conventional applications. "AEON expands Web3 mobile payment solution to Nigeria " was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Insider
03-07-2025
- Business
- Business Insider
Beta Glass 51st AGM: Doubles dividend to ₦1.76bn as PAT surges 112% in 2024
Beta Glass Plc, a member of Frigoglass Group and the leading glass packaging manufacturer in West and Central Africa, announced a 1.76Bn dividend at the company's Annual General Meeting (AGM), which held recently at Landmark Event Centre in Lagos. The event, which was attended by shareholders, institutional investors and regulators, offered a platform to review the company's Annual Report and Financial Statements for the year ended December 31, 2024 and set the course for future expansion and sustainability. Chairman of the Board, Dr. Vitus Ezinwa, welcomed shareholders and commended the company's resilient performance in an increasingly complex macroeconomic environment. He announced a dividend of ₦1.76 billion Naira, a 111% increase from the previous year. In his address, the Chairman also noted, 'The results we share today reflect a business that has remained steadfast, agile and deeply committed to delivering value. Despite inflationary pressures, exchange rate fluctuations and rising costs, Beta Glass' 2024 fiscal performance exceeded our expectations. We appreciate our shareholders' invaluable support and trust in our long-term vision.' For the full year, Beta Glass Plc recorded an 87% increase in revenue, while Profit After Tax (PAT) rose by 112% compared to the previous financial year. This exponential growth was primarily driven by a 61% increase in pricing and a 16% increase in sales volume, reflecting the increase in market demand. The company's dividend per share rose from 1.4 Naira in 2023 to 2.95 Naira per share in 2024. Chief Executive Officer of Beta Glass, Alexander Gendis, attributed the company's robust performance to strategic decisions around capacity utilisation, operational efficiency and customer-centricity. 'For us, 2024 was a continuation of a journey of transformation and consolidation,' said Mr. Gendis. 'Our company achieved margin expansion without compromising volume growth which is a clear demonstration of the strength of our business model. In 2025, we are cautious, yet optimistic. We're not only expanding our footprint in various sectors but also our export focus on West and Central Africa. In addition to this, 2025 will see an increase in our sustainable energy efforts with our investment in a solar power plant at our Agbara plant.' At the end of the 2024 financial year, Beta Glass Plc delivered a gross profit of 30.75 billion Naira, up by 148 % from 12.38 billion Naira recorded in the previous year. Profit Before Tax increased to 19.90 billion naira representing 111% increase from 9.45 billion recorded in 2023. While Profit After Tax rose by 112% to close the year at N13.63 billion Naira from N6.44 billion Naira in 2023. Key resolutions presented at the AGM, including approval of the 2024 financial statements and the ratification of board appointments, were approved by shareholders. As Beta Glass Plc enters a new fiscal year, the company is expanding its export footprints and investing in alternative sustainable energy sources to boost efficiency and support growing domestic and international demand. About Beta Glass Plc Beta Glass Plc is a leading manufacturer of premium glass packaging solutions for beverage, pharmaceutical and food industries. Headquartered in Lagos, Nigeria, the company operates across nine other African countries, including Ghana, Côte d'Ivoire, Sierra Leone, Liberia, Cameroon, South Africa, and Burkina Faso. Beta Glass also exports to markets such as Ghana, Burkina Faso, Ivory Coast, Angola, Benin, Gabon, Mauritius, and Togo, serving both regional and international clients with a strong commitment to quality, innovation, and sustainability.
Coin Geek
01-07-2025
- Business
- Coin Geek
Stablecoins explode in Africa, but will regulators catch up?
Homepage > News > Finance > Stablecoins explode in Africa, but will regulators catch up? Getting your Trinity Audio player ready... Africa has long been touted as the region that most benefits from digital assets and blockchain technology. However, activity in the region has been the lowest globally, and blockchain adoption has also failed to blow up as expected. This is now changing, and stablecoins are at the forefront of this transformation. Africans prioritize utility over speculation, and now, with stablecoins, payments, hedging against local currency depreciation and cross-border transfers are easier and faster than ever. Africa's stablecoin revolution Africa's embrace of stablecoins didn't happen overnight; it's been building over the past few years. With the value of most local currencies depreciating—the naira, for instance, has lost 73% of its value against the USD over the past three years—Africans have turned to stablecoins as a hedge. Millions more have been using stablecoins to send and receive funds from overseas. A new report by the pan-African exchange Yellow Card revealed that Africa leads the stablecoin sector with a 9.3% adoption rate. The report placed Nigeria first globally with 25.9 million users, translating to 12% of the population. 'Stablecoins have become an increasingly critical tool for Africans seeking more efficient and accessible financial solutions. Nowhere is this more evident than in Nigeria,' the report stated. 'Nigeria's leadership in stablecoin adoption and digital asset usage is not just a tech milestone; it's a signal of how financial innovation can thrive in response to local needs.' Ten other African nations are in the top 50, including Ethiopia, Morocco, and Kenya at 26th, 27th and 28th respectively. This milestone is even more impressive for Morocco and Egypt (ranked 44th), considering they placed bans on digital assets years ago; combined, the two North African countries have 17 million stablecoin users. Overall, over 54 million Sub-Saharan Africans have been using stablecoins. The report pointed out that stablecoins 'are becoming a permanent fixture in Africa's financial landscape, driven not only by individual users but increasingly by businesses and financial institutions, with international collaboration and government interest accelerating the trend.' Yellow Card says that stablecoins are moving beyond peer-to-peer funds transfers as more businesses are now accepting them as payment, 'unlocking faster transactions and deeper access to foreign currency-denominated tools, all of which fuel economic innovation and financial inclusion.' Digital asset payments on an uptrend Yellow Card's report aligns with another study by Luno that found South Africans are increasingly making digital asset payments, with stablecoins the most popular. Since November last year, Luno Pay has recorded $1.1 million in digital asset payments, equating to over $150,000 every month. 'Appetite for digital currency transactions in everyday commerce is growing,' commented the country manager for South Africa, Christo de Wit. The stablecoin economy is expanding beyond the mainstream exchanges, with new fintechs now relying on stablecoin rails to enable fast and cheap transfers across borders. One of these is Juicyway, which launched out of stealth mode last December after a $3 million pre-seed funding round. The startup claimed it had processed $1.3 billion in 25,000 transactions while in stealth mode without a publicly available app or any marketing. It relied purely on referrals from its clients, according to its founders. Even offshore startups are now targeting Africa with stablecoin products. Zoot, an i-gaming startup founded by former Meta (NASDAQ: META) executive Sean Ryan, says Africa is now its biggest growth opportunity. 'We are now seeing explosive growth in stablecoin adoption, and real-money gaming is a trillion-dollar market waiting to be transformed by crypto rails,' said David Pakman, the managing partner at CoinFund, one of the investors in Zoot. But while adoption skyrockets, regulators must catch up, industry leaders say. 'Collaborations between government and fintechs will help build trust, scale solutions, and drive sustainable systems that solve real problems. Everyone from startups to regulators has a role to play,' says Nathaniel Luz, the president of the Africa Stablecoin Network. Luz is the lead organizer of the upcoming Nigeria Stablecoin Summit, set to be held on July 24, which will bring together regulators, innovators, and enthusiasts to chart a path forward for stablecoins in Nigeria and beyond. Gillian Darko, the Chief of Staff at Yellow Card, concurs, amplifying the need for policymakers to catch up with the rapid advancements in the stablecoin sector. 'The growing consensus is clear: regulations should support innovation, not stifle it,' she says. Watch: Tech redefines how things are done—Africa is here for it
