Echotitbits – Nigeria News

Category: Economy

  • Naira Dips Slightly as Foreign Reserves Rise to $45.6 Billion

    Naira Dips Slightly as Foreign Reserves Rise to $45.6 Billion

    Figures cited by Daily Post show the naira recorded a mild dip at the official market, trading around ₦1,419.72 per dollar after a strong early-year run. The move marked the currency’s first reported depreciation of 2026.

    At the same time, the Central Bank of Nigeria said foreign reserves continued to rise, reaching about $45.64 billion, suggesting a strategy of building liquidity buffers rather than heavy immediate market intervention.

    The parallel market was also reported to have softened slightly. Analysts cited seasonal Q1 import demand and post-holiday business activity as factors behind short-term volatility.

    Vanguard and Leadership carried related market commentary, including calls to watch CBN liquidity actions and policy signals.

    Echotitbits take: A small dip isn’t panic territory. Rising reserves give the CBN more room to stabilize markets if pressure builds—watch policy signals at the next MPC meeting.

    Source: Daily Post – https://dailypost.ng/2026/01/02/naira-records-n100-appreciation-against-dollar-foreign-reserves-rise-to-45-5bn-in-2025/ 2026-01-09

    Photo Credit: Daily Post

  • Parallel Market Pressure Deepens as Naira Slides to ₦1,490 per Dollar

    Parallel Market Pressure Deepens as Naira Slides to ₦1,490 per Dollar

    According to Vanguard, the naira came under fresh pressure in the parallel market on Thursday, weakening to about ₦1,490/$—down from roughly ₦1,470/$ earlier in the week.

    Figures from the Nigerian Foreign Exchange Market (NFEM) also showed a mild softening in the official close, moving from about ₦1,416/$ to ₦1,421/$, widening the spread between official and street rates.

    Market watchers linked the renewed volatility to seasonal FX demand and speculative positioning, even as the central bank has continued to signal optimism around reserve buildup and longer-term convergence.

    **Echotitbits take:** The persistent gap between official and parallel rates remains a key credibility test for FX reforms. If liquidity at the retail end stays tight, expect more pressure on prices and confidence—watch closely for the CBN’s next market-facing intervention.
    Source: Guardian — https://guardian.ng/business-services/naira-eyes-n1300-at-parallel-market-as-speculators-offload-fx/ 2026-01-08

    Photo Credit: Guardian

  • Nigeria Posts ₦12 Trillion Trade Surplus as Non-Oil Exports Jump

    Nigeria Posts ₦12 Trillion Trade Surplus as Non-Oil Exports Jump

    Data released by Vanguard indicates Nigeria recorded a historic ₦12 trillion trade surplus in 2025, driven in part by a reported 21% rise in non-oil exports.

    Officials attributed the improvement to stronger performance in agriculture, processed solid minerals and select manufactured goods, positioning the outcome as a milestone for diversification.

    The stronger trade position is also expected to ease some FX pressure, though the broader macro outlook still depends on inflation and investment flows.

    **Echotitbits take:** The surplus is encouraging, but the public will measure success by jobs and cheaper goods. Watch for export incentives, port efficiency reforms and logistics upgrades that can keep non-oil growth durable.
    Source: Vanguard — https://www.google.com/amp/s/www.vanguardngr.com/2026/01/nigeria-records-n12trn-trade-surplus-21-non-oil-export-growth-in-h1-2025-trade-ministry/amp/ 2026-01-08

    Photo Credit: Vanguard

  • PwC Forecasts 4.3% GDP Growth for Nigeria in 2026, Cites Reforms and Digital Shift

    PwC Forecasts 4.3% GDP Growth for Nigeria in 2026, Cites Reforms and Digital Shift

    Insights from The Punch show PwC Nigeria is projecting a 4.3% expansion in Nigeria’s GDP in 2026, pointing to energy sector recovery and ongoing digital transformation in financial services.

    The report also linked growth prospects to sustained reform momentum, including fiscal adjustments and improvements in oil-region security.

    PwC flagged risks around inflation and external shocks, warning that poorly managed transitions could squeeze SMEs.

    **Echotitbits take:** The projection is achievable—but only if reforms translate into investment, stable prices and inclusive growth. Watch for policy clarity and execution speed, especially around taxes, FX and energy.
    Source: BusinessDay — https://businessday.ng/business-economy/article/nigerias-tax-to-gdp-ratio-seen-rising-in-2026-as-reforms-kick-in/ 2026-01-08

    Photo Credit: BusinessDay

  • CBN warns bank recapitalisation could crowd out other capital-market fundraising

    CBN warns bank recapitalisation could crowd out other capital-market fundraising

    Reporting by Punch indicates the Central Bank of Nigeria (CBN) is warning that the ongoing bank recapitalisation drive could tilt capital-market funding even more heavily toward banks, leaving other issuers struggling to attract investor attention.

    The concern is not that recapitalisation is unnecessary, but that liquidity could become concentrated in bank equity and related offers if multiple large fundraises hit the market around the same time.

    CBN’s outlook describes a generally bullish capital-market tone, but stresses that momentum can become fragile when one sector dominates deal flow, raising concentration risk.

    For corporates outside banking, the implication is tougher pricing and slower book-building if banks keep taking the front seat through 2026.

    Elsewhere, ThisDay quoted the apex bank warning the market could face “higher concentration risk” and that recapitalisation may “crowd-out other issuers.” Premium Times also noted the central bank’s caution that rising non-performing loans and concentration risks could weigh on growth outcomes.

    Echotitbits take: The sequencing of bank offers will matter. If multiple tier-1s fundraise in the same quarter, expect wider discounts and weaker demand for non-bank IPOs and bonds. Timing discipline and a deeper investor base are the pressure valves.

    Source: BusinessDay – https://businessday.ng/companies/article/cbn-sees-capital-market-extending-bullish-streak-on-bank-recapitalisation/ January 7, 2026
    BusinessDay  January 7, 2026

    Photo Credit: BusinessDay

  • CBN projects faster growth and stronger reserves in 2026 as inflation eases

    CBN projects faster growth and stronger reserves in 2026 as inflation eases

    According to Premium Times, the CBN’s 2026 macro outlook projects faster economic expansion alongside further inflation moderation and stronger external buffers.

    The baseline assumes reform momentum continues—supporting business confidence, improving FX market credibility, and lifting investment planning if volatility stays contained.

    On prices, the outlook points to headline inflation easing further in 2026 as food and energy pressures cool and supply conditions improve, though risks remain from oil-output shocks and fiscal slippages.

    CBN also sketches a fiscal picture that still requires revenue reforms and expenditure discipline to avoid renewed macro stress.

    Vanguard reported the central bank forecast includes “a 4.49 per cent growth in GDP” and external reserves rising to “$51.04 billion.” Leadership similarly highlighted that CBN “forecasts $51bn external reserves in 2026.”

    Echotitbits take: This is cautious optimism, not a victory lap. Watch oil output, FX liquidity, and whether fiscal discipline holds—those will decide if the forecast becomes reality.

    Source: Premium Times – https://www.premiumtimesng.com/news/top-news/846528-nigerian-economy-expected-to-grow-4-49-in-2026-inflation-to-ease-cbn.html December 30, 2025
    Premium Times December 30, 2025

    Photo Credit: Premium Times

  • Enugu sets N870bn IGR target for 2026 as agencies are told to ramp up collections

    Enugu sets N870bn IGR target for 2026 as agencies are told to ramp up collections

    In a report by ThisDay, Enugu Governor Peter Mbah set an N870 billion internally generated revenue target for 2026, urging MDAs to intensify revenue mobilisation amid global uncertainty.

    The target is positioned as a core funding pillar for the state’s programme, implying stronger compliance drives, more automation, and broader clarity on what qualifies as collectible revenue.

    The funding mix also points to the continuing role of FAAC allocations and capital receipts, but with IGR expected to carry a heavier share of budget ambition.

    If pursued aggressively, the tension will be balancing expansion of the tax net with maintaining a business-friendly environment that doesn’t choke SMEs and investment.

    The Guardian noted the governor’s funding mix includes “N870 billion IGR” alongside other streams, while The Sun also reported the same direction around the N870bn target tied to the 2026 budget framework.

    Echotitbits take: Enugu’s ambition is plausible only with digitised collections, fewer leakages, and clearer taxpayer services. Watch reforms in land administration, transport levies, and business licensing—the fastest IGR accelerators and the most abused if not controlled.

    Source: The Punch – https://punchng.com/mbah-urges-agencies-to-boost-revenue-meet-budget-target/ January 7, 2026
    The Punch  January 7, 2026

    Photo Credit: The Punch

  • Economic Expert Projects 4% GDP Growth for 2026 Under Reform Gains

    Economic Expert Projects 4% GDP Growth for 2026 Under Reform Gains

    Figures cited by The Nation suggest Nigeria could record up to about 4%–4.5% GDP growth in 2026 if ongoing reforms are sustained, according to Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises (CPPE).

    Yusuf cautioned that structural bottlenecks still constrain productivity and warned that overly optimistic revenue assumptions in the 2026 budget could weaken implementation if oil price volatility persists.

    ThisDay and Daily Post also reported the forecast and highlighted Yusuf’s emphasis that growth must translate into jobs, especially as household spending pressures remain high even with signs of moderating inflation.

    Echotitbits take: 4% growth is respectable, but Nigeria’s real test is whether reforms deliver broad employment and higher productivity. Watch quarterly GDP data for stronger contributions from manufacturing and agriculture—not just services.

    Source: ThePunch – https://punchng.com/sustained-reforms-can-push-nigerias-gdp-to-4-in-2026-expert/ 2026-01-07

    Photo Credit: ThePunch

  • Nigerian Billionaires Outpace South African Rivals in Wealth Growth

    Nigerian Billionaires Outpace South African Rivals in Wealth Growth

    Figures cited by BusinessDay show that Nigeria’s top billionaires have officially overtaken their South African counterparts in combined net worth, reaching a total of $43 billion. Abdul Samad Rabiu, chairman of BUA Group, led the growth in 2025, significantly narrowing the gap with long-time leader Aliko Dangote while simultaneously moving ahead of South Africa’s wealthiest industrial titans.

    The report attributes this shift to the successful expansion of Nigerian conglomerates into the regional African market and the stabilization of the Naira, which has helped maintain the dollar-denominated value of their assets. This ‘wealth war’ between Africa’s two largest economies highlights the growing influence of Nigerian industrialization on the continent.

    The milestone was also mentioned by The Guardian and Vanguard. The Guardian noted that ‘Nigerian billionaires overtake South African peers,’ while Vanguard highlighted that ‘Rabiu leads wealth growth in 2025,’ solidifying his position as one of the most influential figures in African business.

    Echotitbits take: While these numbers are impressive, they highlight the extreme wealth concentration in Nigeria. The growth of these billionaires is largely tied to infrastructure and commodities—sectors that rely heavily on government policy. For the average Nigerian, the real question is when this industrial growth will lead to a significant reduction in the cost of basic goods like cement and sugar.
    Source: BusinessDay – https://businessday.ng/news/article/meet-4-nigerian-billionaires-worth-27-8bn-combined-forbes/ January 6 2026

    Photo Credit: BusinessDay

  • Nigerian Capital Market Hits Historic ₦100 Trillion Milestone

    Nigerian Capital Market Hits Historic ₦100 Trillion Milestone

    Figures cited by Vanguard show that the Nigerian Exchange Limited (NGX) has crossed the ₦100 trillion market capitalization threshold for the first time in history. This unprecedented surge occurred during the opening sessions of the first week of 2026, driven by aggressive buying interest in blue-chip stocks. Analysts attribute this ‘January effect’ to renewed investor confidence in the federal government’s long-term economic stability measures.

    The rally reflects a significant shift in market sentiment as both domestic and institutional investors pivot toward high-yielding equity assets. Experts noted that the milestone is not merely a symbolic victory but a reflection of the deepening of the Nigerian financial sector, which has seen increased participation from local pension fund administrators and retail investors seeking a hedge against previous inflationary pressures.

    The development was also highlighted by The Nation and BusinessDay. The Nation reported that the ‘stock market capitalization hits ₦101 trillion,’ marking a rapid climb in valuation. Similarly, BusinessDay observed that ‘Nigeria crosses ₦100trn market cap on January effect,’ noting that the surge positions the NGX as a dominant force in sub-Saharan African capital markets.

    Echotitbits take: Hitting the ₦100 trillion mark is a psychological breakthrough for the Nigerian economy. It suggests that despite the hardships of 2025, the private sector is betting on a 2026 recovery. However, the concentration of wealth in a few blue-chip stocks means the government must work harder to ensure this liquidity trickles down to small and medium enterprises (SMEs).
    Guardian – https://guardian.ng/news/apc-draws-battle-line-with-wike-over-rivers-political-control/ January 6 2026

    Photo Credit: Guardian