Business
Nigeria’s economy may be back from the brink — The Economist
Improvements in macroeconomic stability are restoring investor confidence.
• President Bola Tinubu
A spate of painful reforms is beginning to show results.
When nigeria returned to civilian rule in 1999, Olusegun Obasanjo, the elected president, set out to clean up the economy after years of mismanagement by military governments.
Initially dismissed by critics, by the end of his second term Mr Obasanjo’s liberal policies had tamed inflation, spurred investment and raised annual gdp growth to around 7 percent.
It didn’t last. Over the past decade gdp per person has fallen.
Yet evidence is now mounting that another stretch of “golden years”, as one analyst calls the period following Mr Obasanjo’s liberalisation, may be on the cards.
In the past two and a half years Bola Tinubu, who in Mr Obasanjo’s day was the governor of Lagos and was elected president in 2023, has been enacting his own set of structural reforms.
As he gears up to run for a second term in 2027, they may be starting to pay off.
It is difficult to overstate the mess Mr Tinubu inherited.
When he took office in 2023, the country’s central bank had $7 billion (equivalent to 1.4% of gdp at the time) in obligations it could not meet, prompting international investors to flee en masse.
The bank’s credibility had been dented by a recklessly loose monetary policy, its mismanagement of dwindling foreign-exchange reserves and efforts to maintain an unsustainable tiered exchange-rate system.
Poverty has risen. But it looks as though Mr Tinubu’s bitter medicine is helping.
In 2022 alone the cash-strapped government spent some $10 billion, equivalent to 2.2% of gdp, on a ruinous fuel subsidy.
To fix things, Mr Tinubu’s government got on with a package of drastic structural reforms. It abolished the fuel subsidy and abandoned that multi-tiered system of dollar-pegged exchange rates, largely allowing the naira to float.
The Central Bank aggressively tightened monetary policy to curb the resulting bout of inflation.
The government also moved to improve security in the Niger Delta and offered a range of tax incentives to investors to boost dwindling oil production.
Nearly three years on, Nigeria’s 230 million people, especially the poor and the middle class, are still reeling from increases in fuel and food prices.
Poverty has risen. But it looks as though Mr Tinubu’s bitter medicine is helping.
The annual inflation rate, which hit a nearly 30-year high of 34.8% in December 2024, fell to 15.2% in December 2025.
Growth is returning.
The IMF expects the economy to expand by 4.4% in 2026.
Following two steep devaluations in 2023, the naira has stabilised (see chart).
The Central Bank’s foreign-exchange reserves have risen to $46 billion, their highest level in seven years.
Improvements in macroeconomic stability are restoring investor confidence.
On January 22nd Shell, a British company, said it hopes in 2027 to finalise plans, with partners, to develop a $20 billion offshore oilfield that has been sitting untapped for over 20 years.
Exxon Mobil, an American firm, has committed $1.5 billion to deep water development until 2027.
Local business leaders are more upbeat, too.
Oil-and-gas production is rising, much of it driven by local firms plugging leaks and improving output in onshore projects in the Niger Delta, which has become safer thanks to Mr Tinubu’s focus on security there.
All this should give the government some fiscal breathing room, particularly as the cheaper naira begins to raise the competitiveness of Nigeria’s non-oil exports such as cocoa and cashew nuts.
Recent reforms to taxation and tax collection, Mr Tinubu’s latest project, should help improve revenues further in the coming years.
Falling inflation should eventually begin to ease the cost-of-living pain.
However, even optimists have plenty of reasons to be cautious.
Savings from the fuel subsidy have largely been spent on servicing the public debt, which is still rising as the government continues to borrow against future sales of oil to fund its deficit.
Currently, some 60% of revenues are consumed by debt service.
On January 20th Nigeria’s finance minister said the government hoped to borrow less this year, but current budget projections suggest that is not realistic.
“The government is broke.
There’s nothing to invest in the future, that’s the truth,” says Esili Eigbe of Escap, a Nigerian consultancy.
Unless the government cuts civil-service salaries, another big chunk of spending, or is able to restructure loans to make them cheaper, the extra revenue from recent tax reforms looks unlikely to be available for improving infrastructure or to pay for public health care and education.
“They’ve brought the deficit down, but they don’t seem to show any greater ability to get capital projects out of the door,“ says David Cowan, an economist at Citi, an American bank.
All this means that it will take a long time for ordinary Nigerians, who until now have mostly borne the pain of Mr Tinubu’s reforms, to feel any benefit.
Buying food has been a particular struggle, not just for the 42% of Nigerians who live on less than $3 a day, the World Bank’s definition of extreme poverty, but also for the urban middle class.
The price of a kilo of rice has nearly quadrupled since May 2023, while wages have barely budged.
Even though inflation is now falling, many still struggle to afford enough to eat.
Mr Obasanjo’s reforms in the early 2000s aimed to increase economic dynamism and improve people’s lives by attracting fresh capital investment into newly privatised sectors.
By the end of his second term in 2007, domestic companies were worth $85 billion, up from $3 billion in 1999.
Mr Tinubu, by contrast, has so far focused on restoring stability and reviving the country’s ailing oil-and-gas sector. To bring about more golden years for Nigerians, he needs to go beyond that. ■
Credit: The Economist
Business
Dangote Foundation Takes Over Aliko Dangote Skills Acquisition Centre Kano
Under the agreement, the Foundation will manage the multi-million naira facility for a number of years and operate programmes aimed at equipping young people with technical, digital and industrial skills.
The Aliko Dangote Foundation has taken over the management of the Aliko Dangote Skills Acquisition Centre in Kano state.
The Memorandum of Understanding was signed between the Foundation and the Kano State Government, on Friday.
Under the agreement, the Foundation will manage the multi-million naira facility for a number of years and operate programmes aimed at equipping young people with technical, digital and industrial skills.
Chairman of the Manufacturers Association of Nigeria (MAN), Kano-Jigawa Branch, Muhammad Bello Isyaku Umar, described the intervention as “far-reaching and impactful,” saying skills acquisition remained one of the most effective ways of addressing youth unemployment in Nigeria..
“Programmes such as the Aliko Dangote Skill Acquisition Centre can equip young people with practical skills that enable them to become entrepreneurs, artisans or employees. The emphasis should increasingly be on modern technical, digital and industrial skills,” Umar said.
He described Kano as the economic and commercial hub of northern Nigeria and said the Foundation’s interventions across the region had extended to several sectors.
Business
Okin Biscuits Set For Comeback After 17 Years, Targets Revival Of Jobs, Local Manufacturing
Founded in the 1980s by the late Chief Emmanuel Olatunji Adesoye, an illustrious son of Offa, Okin Biscuits grew into a household name with products including Okin Coasters, Shortcake and Okin Cabin Biscuits.
By Ochefa
After 17 years off the shelves, Okin Biscuits, one of Nigeria’s once-popular indigenous biscuit brands, is set to return to production as efforts intensify to revive the Ijagbo, Kwara State-based factory.
The planned comeback marks a significant attempt to restore one of the country’s old manufacturing brands while potentially reopening a major source of employment and economic activity in the community.
Founded in the 1980s by the late Chief Emmanuel Olatunji Adesoye, an illustrious son of Offa, Okin Biscuits grew into a household name with products including Okin Coasters, Shortcake and Okin Cabin Biscuits.
At its peak, the company provided direct and indirect employment to more than 2,000 people before production was eventually halted in 2009.
The shutdown reflected some of the structural problems that have continued to undermine Nigeria’s manufacturing sector, including harsh operating conditions, intense competition, inadequate infrastructure, vandalism and the theft of critical production equipment.
With the factory no longer producing, its products gradually disappeared from retail outlets and homes in Kwara, Lagos and other parts of the country.
Factory Undergoing Major Rehabilitation
However, the industrial facility is now showing signs of renewed activity.
A visit to the factory in Ijagbo showed that extensive rehabilitation work is underway across the complex.
The main factory building, which houses the production machinery, as well as the administrative block and other facilities, are undergoing comprehensive renovation.
The premises have already assumed a significantly different appearance, suggesting that the revival project has moved beyond plans and into physical reconstruction.
The management recently announced through its official Facebook page that production machinery was being test-run.
It said biscuits rolled off one of the rehabilitated production lines on August 25, 2026, marking the first production from the factory in 17 years.
The development is significant not merely as the return of a nostalgic consumer brand, but as an example of how the rehabilitation of abandoned industrial assets could contribute to renewed domestic production and employment.
For Nigeria, where manufacturers continue to contend with high energy and logistics costs, infrastructure constraints, foreign exchange pressures and strong competition from imported products, the reopening of an existing manufacturing facility could offer a potentially faster route to industrial capacity expansion than building an entirely new factory.
Community Backs Revival
…biscuits rolled off one of the rehabilitated production lines on August 25, 2026, marking the first production from the factory in 17 years.
The planned resuscitation has also attracted strong support from the Offa community.
The Aare Bobaselu of Offa, Chief Abdulatif Adekunle Ajeigbe, described the development as “heartwarming,” linking it to the broader Offa Mega City project championed by the Olora of Offa, Oba Muftau Mohammed Gbadamisi, Esuwoye II.
According to him, members of the community had made several efforts to revive the moribund factory, including exploring the possibility of group financing.
“We did our best to see that the factory came back to life, but it was the children of the late Asiwaju of Offa and the founder of the factory, Chief Emmanuel Olatunji Adesoye, who insisted on carrying on their father’s legacy through the factory,” he said.
Ajeigbe commended the founder’s children for their determination to preserve the family’s industrial legacy and bring the factory back into operation.
More Than A Brand Revival
The return of Okin Biscuits also highlights the wider economic value embedded in Nigeria’s abandoned industrial assets.
The company’s earlier success created employment not only within the factory but across its supply and distribution networks, including raw-material suppliers, transporters, distributors, retailers and other service providers.
A successful reopening could therefore have an economic impact extending beyond the factory gates, particularly if production eventually returns to significant capacity.
The bigger test, however, will be whether the revived company can operate sustainably in an increasingly competitive Nigerian consumer market.
The new investors will have to contend with production costs, energy supply, distribution challenges, consumer purchasing power and competition from both established domestic manufacturers and imported brands.
For Okin, the challenge is therefore not simply to restart the machines, but to build a commercially viable manufacturing operation capable of sustaining production, protecting jobs and reclaiming market share.
If successful, the return of Okin Biscuits could become more than a nostalgic homecoming for Nigerian consumers.
It could provide a practical demonstration that some of the country’s dormant industrial assets can be rehabilitated, modernised and returned to productive use.
After 17 years of silence, the sound of Okin’s production lines running again may therefore signal the beginning of a new chapter for one of Nigeria’s forgotten manufacturing brands.
Business
Dangote to launch Refinery’s IPO September 14 or 16
Dangote disclosed this on Thursday while speaking to investors and analysts in Botswana.
Aliko Dangote, chief executive officer (CEO) of the Dangote Group, says the initial public offering (IPO) of Dangote refinery will open in the next 10 to 12 days.
Dangote disclosed this on Thursday while speaking to investors and analysts in Botswana.
The refinery had announced plans to launch a Pan-African IPO, offering at least 10 percent of its refining business to fund a $40 billion expansion objective.
On August 18, the refinery said it had completed a $1 billion underwriting programme ahead of the planned IPO.
Speaking during his visit to the southern African country, Dangote said his ambition was to double the refinery’s capacity.“So our dream is that we want to make sure we double the capacity of the refinery… which will take us to 1.4 million barrels per day. The IPO will open in the next 10 to 12 days,” he said.
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