Echotitbits – Nigeria News

Tag: Nigeria economy

  • Nigerian Banks to Enforce Mandatory Tax ID for All Account Operations

    Nigerian Banks to Enforce Mandatory Tax ID for All Account Operations

    In an update published by Channels TV, Nigerian commercial banks have begun the full enforcement of mandatory Tax Identification Numbers (TIN) for both new and existing account holders. This policy, which stems from the new tax reforms, requires every individual and business to link their bank accounts with their tax records. Failure to comply will result in restricted access to banking services, including transfers and withdrawals, as the government seeks to widen the tax net and track illicit financial flows.

    The Central Bank of Nigeria (CBN) and the FIRS have collaborated on a unified platform that allows for real-time verification of tax IDs. Bank officials have urged customers to update their records immediately to avoid being locked out of the financial system. The policy is also aimed at identifying high-net-worth individuals who have previously evaded taxes while moving large sums of money through the banking sector.

    The enforcement was also documented by The Nation and Vanguard. The Nation reported that “banks have seen a surge in customers visiting branches to link their TINs,” while Vanguard noted that “the move is expected to significantly boost the government’s non-oil revenue.”

    Echotitbits take:

    This is the “no-escape” phase of Nigeria’s tax reform. By linking TIN to bank accounts, the government can now monitor income versus lifestyle in real-time. Watch for a rise in fintech usage and “under-the-mattress” cash holdings as some small businesses try to avoid the digital tax footprint.

    Source: Facebook – https://web.facebook.com/ReportYourself/posts/nigerian-govt-set-make-tax-identification-number-mandatory-for-bank-accounts-fro/1421006479380864/?_rdc=1&_rdr#, January 31, 2026

    Photo credit: Facebook

  • Nigeria and United States Reinforce Strategic Trade and Investment Ties

    Nigeria and United States Reinforce Strategic Trade and Investment Ties

    The Guardian reports that Nigeria and the United States reaffirmed plans to deepen bilateral economic relations after a high-level Commercial and Investment Partnership meeting in Lagos.

    Nigeria’s Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, said the engagement is intended to streamline trade processes and attract sustainable U.S. capital into emerging sectors.

    Discussions reportedly centered on agriculture, the digital economy, and manufacturing, with both sides looking to reduce trade barriers and improve investor confidence through policy consistency.

    Channels TV and BusinessDay also covered the meeting, noting expectations of a more predictable operating environment for U.S. firms and potential FX benefits tied to stronger commercial flows.

    Echotitbits take: The timing is strategic as Nigeria tries to diversify away from crude oil. The reported involvement of U.S. agriculture-linked stakeholders hints at food-security collaboration via technology transfer. Watch for follow-on instruments such as export incentives for non‑oil products and targeted investor protections.

    Source: The Guardian – https://guardian.ng/business-services/nigeria-u-s-remain-committed-to-economic-ties-says-oduwole/ 2026-01-30

    Photo Credit: The Guardian

  • Domestic Investors Drive N126 Billion Gain in Nigerian Stock Market

    Domestic Investors Drive N126 Billion Gain in Nigerian Stock Market

    In an update published by Daily Post, the Nigerian Exchange (NGX) continued its positive run on Tuesday as investors saw their wealth grow by N126 billion. The market capitalization rose to N106.088 trillion, driven by strong buying interest in medium and large-cap stocks. The All-Share Index (ASI) advanced by 0.12 percent, reflecting a sustained optimism among domestic institutional investors and retail traders alike.

    The rally was spearheaded by gains in the real estate and financial services sectors, with firms like Union Homes and Access Corporation recording significant trading volumes. Despite a slight decline in overall trading volume compared to previous sessions, the transaction value remained high, suggesting that high-value trades are dominating the market floor.

    Leadership noted that the market performance was “largely driven by renewed buying interest in the banking sector,” specifically naming GTCO and Access Bank as key drivers. The Nation further validated the trend, reporting that “the Nigerian stock market has remained resilient despite global economic shifts,” attributing the growth to local pension fund activity.

    Echotitbits take: The dominance of domestic investors is a double-edged sword; it provides stability against global shocks but may limit the market’s total growth potential. Watch for any moves by the NGX to attract more foreign portfolio investors later in the year.

    Source: The Nation – https://thenationonlineng.net/stock-markets-capitalisation-rises-to-n127tr/ January 28, 2026

    Photo Credit: The Nation

  • Naira Gains in Official Market as CBN Interventions Boost Liquidity

    Naira Gains in Official Market as CBN Interventions Boost Liquidity

    The Nigerian naira opened the final week of January 2026 with modest gains against the US dollar in the official market, following reported Central Bank of Nigeria (CBN) interventions and improved foreign exchange liquidity.

    Market watchers say the spread between official and parallel market rates continues to narrow, a trend linked to recent efforts to attract foreign portfolio inflows and stabilize the currency. For import-reliant businesses, even incremental stability can ease cost planning and reduce pass-through inflation on raw materials.

    The CBN is expected to remain cautious, maintaining a tight monetary stance as inflation risks persist. Separate market reporting also characterized the gains as liquidity-driven, reinforcing the view that policy signaling and FX supply conditions will be decisive through Q1.

    Echotitbits take: Currency stability is the Holy Grail for the current economic team. If the Naira stays within this range, we might see a more significant drop in the cost of imported raw materials by the second quarter.
    Source: BusinessDay – https://businessday.ng/business-economy/article/naira-records-0-8-year-to-date-gain-as-reserves-grow-further/ 2026-01-26

    Photo Credit: BusinessDay

  • Shell CEO Announces Massive $20 Billion Investment Commitment for Nigeria

    Shell CEO Announces Massive $20 Billion Investment Commitment for Nigeria

    Shell Plc has announced a fresh $20 billion investment commitment to Nigeria’s energy sector, disclosed by global CEO Wael Sawan during a meeting at the Presidential Villa. Sawan praised recent policy reforms, saying they have helped restore investor confidence in Nigeria’s oil and gas industry.

    The investment is expected to target deepwater assets and gas infrastructure, including projects linked to Bonga North and NLNG. Shell’s leadership indicated the company is positioning for long-term capital deployment, with gas infrastructure aligned to Nigeria’s energy transition ambitions.

    The commitment is being framed by government officials as support for the administration’s wider economic agenda and efforts to reverse years of declining oil production. Separate reporting also described the package as a potential lifeline to multiple idle assets, while emphasizing leadership and policy clarity as factors driving the decision.

    Echotitbits take: After years of divestment talk, this massive commitment from Shell is a vote of confidence. The challenge now lies in ensuring security for these assets to prevent the crude oil theft that plagued previous years.
    Source: The Punch – https://punchng.com/shell-ceo-hails-tinubus-leadership-pledges-20bn-investment-in-nigeria/ 2026-01-26

    Photo Credit: The Punch

  • NICA Demands Shift to Credit-Based Economy to Spur Growth

    NICA Demands Shift to Credit-Based Economy to Spur Growth

    The National Institute of Credit Administration (NICA) has renewed calls for the Federal Government to institutionalize a credit-driven economic model, arguing that a transition from predominantly cash-based transactions can deepen financial inclusion and improve long-term economic resilience.

    Key argument: NICA says a functional credit economy depends on strong legal frameworks for default management and a culture of transparency, alongside closer collaboration between government reforms and professional credit institutions.

    Context: Analysts cited in related coverage suggest a properly implemented credit-led recovery could boost growth, but implementation risks remain—especially amid inflation and policy uncertainty.

    Echotitbits take: A stronger credit system could expand SME capacity and middle-class purchasing power. The real test is whether monetary policy and inflation dynamics can support affordable lending without increasing systemic risk.

    Source: The Guardian – https://guardian.ng/business-services/nica-seeks-migration-to-credit-based-economic-growth/ (January 25, 2026)

    The Guardian 2026-01-25

    Photo Credit: The Guardian

  • Nigeria Braces for 40% Tariff Wall Under New U.S. Economic Directives

    Nigeria Braces for 40% Tariff Wall Under New U.S. Economic Directives

    Reporting citing SBM Intelligence and additional coverage indicates Nigeria’s export outlook could face new headwinds following an announced U.S. policy directive imposing an immediate 25% tariff on countries that maintain significant commercial ties with Iran. Analysts warned that, in combination with existing barriers, the measure could amount to a de facto “40% tariff wall” for affected trade flows.

    The directive—communicated via the U.S. President’s social media platform—was presented as an enforcement mechanism for sanctions policy against Tehran. For Nigeria, the concern is that any exposure through bilateral engagements or energy-linked consultations could trigger trade penalties that undermine foreign exchange earnings and export diversification efforts.

    The Guardian and ThisDay also reported on potential fallout and official reactions, including indications that Nigeria’s Ministry of Foreign Affairs is reviewing the directive and engaging U.S. counterparts to protect legitimate trade interests.

    Echotitbits take: If applied strictly, this policy forces Nigeria into a difficult trade-off between strategic diplomacy and market access. Watch for accelerated diplomatic engagement in Washington, and for Nigeria to seek carve-outs by emphasizing its strategic role in regional security and energy stability.
    Source : BusinessDay — https://businessday.ng/maritime/article/nigeria-faces-40-us-tariff-hit-over-iran-trade-ties/ 2026-01-24

    Photo Credit: BusinessDay

  • Nigeria Can Achieve 2026 Economic Targets Through Targeted Tax Reforms

    Nigeria Can Achieve 2026 Economic Targets Through Targeted Tax Reforms

    Nigeria Can Achieve 2026 Economic Targets Through Targeted Tax Reforms

    In an update published by The Nigerian Observer, the Lagos Chamber of Commerce and Industry (LCCI) said Nigeria can meet its 2026 growth targets if the government sustains its reform trajectory. The Chamber emphasized that tax harmonization and the removal of multiple levies on manufacturers are critical for boosting industrial output, competitiveness, and job creation.

    LCCI’s assessment comes amid a broader push for fiscal discipline. The group said recent reforms have been painful but are beginning to attract investor interest. It warned, however, that high costs of doing business—especially energy and logistics—must be addressed so that reform gains are not eroded.

    The Guardian validated the position, quoting an LCCI executive who argued for a tax system that encourages production rather than consumption. ThisDay also reported that business leaders are cautiously optimistic, particularly about the second half of 2026 if policy consistency holds.

    Echotitbits take: LCCI is acting as a constructive critic. Tax harmonization is pivotal because nuisance levies across state and local levels remain a deterrent for SMEs. Reform credibility will be judged by implementation—not press conferences.

    Source: StateHouse— https://statehouse.gov.ng/2026-marks-the-beginning-of-a-more-robust-phase-of-economic-growth/ (2026-01-23)

    Photo Credit: StateHouse

  • Local Currency Firms Up Against Dollar in Early 2026 Trading

    Local Currency Firms Up Against Dollar in Early 2026 Trading

    Local Currency Firms Up Against Dollar in Early 2026 Trading

    Figures cited by Vanguard show that the Nigerian Naira began the third week of January on a strong note, appreciating to approximately 1,418 per dollar in the official market. The move has been attributed to increased liquidity in the Nigerian Foreign Exchange Market (NFEM) and a drop in speculative demand. Analysts say the Central Bank’s efforts to clear outstanding obligations have restored some confidence among corporate buyers.

    In the parallel market, the currency also showed resilience, trading between 1,470 and 1,485 per dollar. Market watchers point out that the gap between official and street rates is narrowing—an objective of current monetary policy. Bureau De Change operators say typical New Year volatility has been tempered by a steady flow of diaspora remittances and improved oversight.

    The Guardian also reported that rate convergence is a positive signal for international investors. ThisDay quoted a financial analyst saying that improved transparency is contributing to market stability. The market remains optimistic that the Naira can hold its trajectory through the first quarter.

    Echotitbits take: Stability is the keyword. While 1,400+ remains a high level, reduced daily swings help businesses plan. The true stress-test will be sustaining liquidity without undue pressure on external reserves.

    Source: Reuters — https://www.reuters.com/world/africa/south-african-rand-firmer-ahead-local-inflation-data-2026-01-21/ (2026-01-23)

    Photo Credit: Reuters 2026-01-23