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Flutterwave CEO Envisions Building Africa’s “Payment Superhighway” at CNN Global Perspectives Summit

  • dollaers
  • November 9, 2025
  • Fintech
  • 0 comments

Flutterwave Founder and CEO Olugbenga “GB” Agboola has outlined his bold vision of creating a “payment superhighway” that will connect African economies, streamline cross-border transactions, and strengthen the continent’s position in the global digital economy.

Speaking at CNN’s inaugural Global Perspectives Summit, themed “Africa’s Role in a Changing World,” Agboola said Flutterwave’s mission is to enable seamless money movement within Africa and between Africa and the rest of the world.

He described this initiative as key to unlocking intra-African trade and digital innovation across borders.

Regulatory Collaboration Driving Growth

Agboola emphasized the importance of regulatory cooperation in building Africa’s digital payment ecosystem. He cited the recent fintech memorandum of understanding between Ghana and Rwanda as a landmark step toward harmonizing cross-border payment regulations.

“Across the continent, regulators are very impressive. They understand how to enable the networks of growth and are focused on empowering players who have the infrastructure and understand the market,” Agboola said.

He added that the evolving regulatory environment is helping foster innovation, boost investor confidence, and expand the reach of African fintechs.

Global Leaders Discuss Africa’s Startup Future

Agboola shared the stage with other global business leaders, including Lucy Liu, Co-founder and President of Airwallex; Alex Okosi, Managing Director of Google Africa; and Serigne Dioum, CEO of MTN Group Fintech. The session, titled “Fueling the Next-Generation Startup Ecosystem,” was moderated by CNN’s Richard Quest.

Panelists agreed that Africa is at a pivotal moment for digital transformation, driven by its youthful population, entrepreneurial culture, and increasing access to financial technology.

Okosi highlighted that regulators across the continent are showing greater openness to digital finance, while Liu noted that many are prioritizing consumer protection and ecosystem integrity. Dioum added that regulators and operators now share a common goal of driving financial inclusion and economic empowerment.

Africa’s Legacy in Alternative Payments

Agboola acknowledged Africa’s pioneering role in alternative payment solutions, referencing successful models like Kenya’s M-Pesa and Nigeria’s Inter-Bank Settlement System (NIBSS).

He said these innovations have laid the groundwork for a unified, technology-driven financial system:

“What’s been missing is the interoperable infrastructure that connects these systems. At Flutterwave, we’re building that payment superhighway that allows businesses and consumers to move money seamlessly.”

Flutterwave’s Vision for a Connected Continent

Flutterwave continues to expand its footprint across Africa and beyond, developing digital tools that make cross-border payments faster, cheaper, and more reliable.

The company recently announced a strategic partnership with Polygon, a leading blockchain network, to build Africa’s largest infrastructure for stablecoin payments — a move aimed at enhancing transaction speed, transparency, and currency stability.

This initiative aligns with Flutterwave’s broader goal of transforming Africa’s fragmented financial landscape into a connected, interoperable ecosystem, where money moves “as freely as ideas and innovation.”

Agboola’s remarks underscored a powerful message: that with the right mix of regulatory collaboration, technological innovation, and entrepreneurial energy, Africa can become a global leader in digital payments and financial connectivity.

100 Dollars To Naira Black Market Today

Wema Bank Strengthens Capital Position with ₦50 Billion Share Listing

  • dollaers
  • November 9, 2025
  • Bank
  • 0 comments

Wema Bank Plc has further strengthened its capital base with the successful listing of 4.55 billion ordinary shares on the Nigerian Exchange Limited (NGX) following a ₦50 billion private placement.

According to a notice from the NGX, the newly listed shares — 4,545,454,542 ordinary shares of 50 Kobo each — were listed on Tuesday, November 4, 2025, at ₦11.00 per share.

With this addition, the bank’s issued and fully paid-up share capital has increased from ₦35.57 billion to ₦40.12 billion, further enhancing its capital adequacy ratio and expanding its capacity for future growth.

Boost to Market Capitalization

The listing positions Wema Bank among the top 25 most capitalized companies on the Exchange, with a market capitalization of ₦756 billion, representing about 0.8% of the NGX’s total equity market capitalization.

The fresh capital injection is expected to bolster liquidity, drive digital innovation, and support strategic retail expansion initiatives, reinforcing Wema Bank’s growing reputation as a technology-driven financial institution.

Strong Year-to-Date Growth Despite Volatility

Wema Bank’s share performance has reflected strong investor confidence throughout 2025. The stock closed trading on Friday, November 7, 2025, at ₦18.85 per share, marking a 107% year-to-date gain from its opening price of ₦9.10 in January.

Despite the impressive rally, the stock saw a mild pullback in recent weeks, declining 6% in four weeks, including a 2.1% dip from ₦19.25 to ₦18.85 on November 7 — a correction analysts attribute to short-term profit-taking.

Between August 11 and November 7, 2025, Wema Bank ranked 22nd most actively traded stock on the NGX, with 659 million shares traded across 24,904 deals, valued at ₦12.6 billion.

The stock recorded a trading high of 152 million shares on October 2 and a low of 572,900 shares on September 11, highlighting consistent investor engagement.

Q3 2025 Results Reflect Strong Fundamentals

Wema Bank’s Q3 2025 results underscored its strong fundamentals, with gross earnings rising 42% year-on-year, driven by:

  • Increased interest income from loans,

  • Higher non-interest revenue, and

  • Continued success of its digital banking platforms, notably ALAT.

Pre-tax profit surged to ₦35.7 billion, up from ₦25.1 billion in the same period of 2024.
Total assets grew by 26% year-on-year to surpass ₦2.1 trillion, while customer deposits expanded steadily through retail growth and digital adoption.

Analysts view the private placement as timely, strengthening Wema Bank’s capital buffer ahead of the expected recapitalization drive in Nigeria’s banking sector.

Market Outlook

With a stronger capital base, expanding digital ecosystem, and consistent profitability, Wema Bank is emerging as one of Nigeria’s fastest-growing mid-tier lenders.

The ₦50 billion private placement provides additional flexibility to:

  • Fund new lending opportunities,

  • Deepen technological investments, and

  • Expand into new customer and SME segments.

While short-term price corrections may continue, analysts remain optimistic about Wema Bank’s medium- to long-term outlook, citing its strong fundamentals, operational efficiency, and clear digital-first growth strategy.

Afreximbank Projects Africa’s Rice Market to Reach $29.2 Billion by 2030

  • dollaers
  • November 9, 2025
  • Export-Import
  • 0 comments

The African Export-Import Bank (Afreximbank) has projected that Africa’s rice market will expand from $24 billion in 2024 to $29.2 billion by 2030, representing a compound annual growth rate (CAGR) of 4%.

This forecast was contained in the Afreximbank Commodity Bulletin Number 1 – 2025, which provides insights into trends shaping the continent’s agricultural trade and food security landscape.

Local Production Rising but Imports Still Dominant

Afreximbank noted that while Africa’s local rice production has improved in recent years, the continent remains heavily dependent on imports to meet its growing consumption needs.

Between 2018 and 2022, rice production rose from 36.9 million tonnes to 39.8 million tonnes, driven by population growth, urbanisation, and shifting dietary preferences. However, this supply growth still falls short of demand.

“In 2024, Africa’s rice market was valued at US$24 billion, with projections to reach US$29.2 billion by 2030,” the report stated, highlighting the ongoing supply-demand imbalance.

Persistent Challenges

The report identified key constraints limiting self-sufficiency in rice production, including:

  • Inadequate rural infrastructure and irrigation systems.

  • Limited access to quality seeds and modern mechanisation.

  • Climate-related risks, such as droughts and flooding, which frequently disrupt harvests.

These factors, according to Afreximbank, continue to suppress productivity and increase dependence on rice imports from India, Thailand, and Vietnam, which supply about 40% of Africa’s total rice consumption.

Nigeria, Mali, and Guinea Lead Drive Toward Self-Sufficiency

The report highlighted Nigeria, Mali, and Guinea as frontrunners in efforts to reduce rice importation and strengthen local value chains.

In Nigeria, initiatives such as the Anchor Borrowers’ Programme and private-sector investments in integrated rice mills have boosted domestic output. However, production still trails behind demand, leaving significant room for growth.

Urbanisation and Changing Diets Fuel Demand

Rising urban populations and shifting dietary habits continue to sustain rice consumption across the continent. Consumers are increasingly drawn to rice as a convenient, easy-to-prepare staple food, particularly in fast-growing urban centers.

AfCFTA and Regional Integration Could Boost Trade

Afreximbank emphasized that the African Continental Free Trade Area (AfCFTA) could play a crucial role in improving intra-African trade in rice by:

  • Reducing transportation and tariff barriers,

  • Facilitating cross-border agricultural cooperation, and

  • Encouraging regional value chain development in paddy rice and processed products.

What This Means

The bank’s projection that Africa’s rice market will reach $29.2 billion by 2030 has broad implications for food security, trade policy, and agricultural investment.

With an expected market expansion of over $5 billion in the next five years, opportunities are emerging for:

  • Private investors to fund rice processing and milling operations,

  • Agritech firms to improve productivity through innovation, and

  • Development finance institutions to support infrastructure and mechanisation projects.

Ultimately, Afreximbank’s outlook underscores both the growth potential and the vulnerability of Africa’s rice sector—highlighting the urgent need for coordinated investment, regional cooperation, and sustainable farming strategies to achieve long-term food independence.

NGX Records ₦4.64 Billion New Bond Listing in First Week of November 2025

  • dollaers
  • November 9, 2025
  • Finance
  • 0 comments

The Nigerian Exchange Limited (NGX) has kicked off November with renewed momentum in the capital markets, following the successful listing of a ₦4.64 billion infrastructure bond issued by Elektron Finance SPV Plc.

The 22.00% Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond, listed on Monday, November 3, 2025, marks the first tranche under the company’s ambitious ₦200 billion Bond Issuance Programme.

This 15-year bond, which matures in July 2040, carries a fixed coupon rate of 22% per annum, positioning it among the most attractive long-term debt instruments currently traded on the NGX.

Strong Credit Enhancement and Institutional Backing

Structured as a senior guaranteed bond, the issue is backed by the Infrastructure Credit Guarantee Company Plc (InfraCredit) and co-obligated by Victoria Island Power Limited. This dual backing provides investors with robust protection and enhances the bond’s credit quality.

InfraCredit’s guarantee effectively transforms the Elektron Finance bond into a low-risk, investment-grade asset, while the co-obligation ensures both financial and operational discipline. Market analysts note that such structures have become increasingly important in deepening Nigeria’s infrastructure debt market.

Key Details of the Listing

According to the NGX, the bond was listed at ₦1,000 per unit and will make semi-annual coupon payments on January 7 and July 7, beginning in July 2025.
Amortised redemption payments will start 36 months after issuance and continue until maturity in July 2040, ensuring disciplined repayment throughout the tenor.

Strong Institutional Participation

The offering attracted significant institutional investor participation, underscoring growing confidence in infrastructure-backed corporate debt.

  • Lead Issuing House: Vetiva Advisory Services Limited

  • Joint Issuing Houses: Anchoria Advisory Services, ARM Capital, CardinalStone Partners, FBNQuest Merchant Bank, and Iron Global Markets Limited

  • Joint Stockbrokers: Anchoria Securities Limited, Vetiva Securities Limited, and ARM Securities Limited

  • Bond Trustee: Custodian Trustees Limited

  • Registrar: Veritas Registrars Limited

Market observers say the success of the Elektron Finance Series 1 bond demonstrates the increasing appetite for long-term, high-yield instruments in Nigeria’s fixed-income market, particularly among pension funds, insurance firms, and asset managers.

Why It Matters

Nigeria continues to face a substantial infrastructure financing gap, estimated at over $100 billion annually. Instruments such as the Elektron Finance bond—supported by InfraCredit guarantees—are vital for attracting long-term domestic capital into critical sectors like power, transport, and industrial development.

About InfraCredit

InfraCredit is a specialised credit enhancement institution backed by the Nigeria Sovereign Investment Authority (NSIA) and international development finance partners. Its mandate is to de-risk infrastructure-related debt instruments and make long-term, naira-denominated financing more attractive to institutional investors.

By guaranteeing corporate infrastructure bonds, InfraCredit helps reduce default risk, improve liquidity, and promote sustainable investment in Nigeria’s economic backbone.

Bottom Line

The ₦4.64 billion Elektron Finance SPV Plc bond listing reinforces NGX’s position as a key platform for infrastructure finance and long-term capital mobilisation. With a 22% annual yield, strong guarantees, and disciplined repayment structure, the bond represents a compelling opportunity for investors seeking high returns with low credit risk—and a vital step forward in bridging Nigeria’s infrastructure gap.

Naira Resilience Pays Off: Pound Sterling Holds Below ₦1,900/£ Amid November Currency Rally

  • dollaers
  • November 9, 2025
  • Economy News
  • 0 comments

The Nigerian naira maintained its upward momentum in early November, strengthening against the British pound sterling and breaking a major resistance level that had held for months. The local currency’s resilience—driven by steady foreign exchange inflows, strong Central Bank reforms, and improved investor sentiment—has kept the pound-to-naira exchange rate below ₦1,900/£ throughout the first week of November.

Data from the interbank and official markets showed that the pound traded between ₦1,885 and ₦1,890/£ during the final trading sessions of the week. Though the parallel (black) market recorded slightly higher rates due to premiums, the currency remained relatively stable, hovering below ₦1,950/£.

This performance underscores the naira’s sustained recovery in 2025—a turnaround that contrasts sharply with the heavy depreciation witnessed in 2023 and early 2024. Analysts attribute this renewed strength to a combination of policy consistency, improved oil earnings, and market-oriented measures implemented by the Central Bank of Nigeria (CBN).

CBN Reforms and Reserve Gains Strengthen Naira

The CBN’s shift toward a more transparent and unified exchange rate regime, coupled with active liquidity management, has restored confidence in the foreign exchange market. The apex bank’s regular interventions, supported by stronger oil receipts and diaspora remittances, have also contributed to a steady increase in foreign reserves.

As of early November 2025, reserves stand above $43 billion—a figure that continues to provide a buffer against external shocks. This improved reserve position has enabled the CBN to smoothen volatility, ensuring that both the official and parallel market rates remain within a narrow band.

Market watchers believe the naira’s current stability is also supported by reduced speculative demand, improved dollar supply from exporters, and corporate conversions at the end of the month. However, they caution that pressures could re-emerge toward the end of the year due to festive-season imports and pre-election fiscal spending.

Trade Relations and Economic Context

Nigeria’s trade relationship with the United Kingdom remains robust, buoyed by post-Brexit agreements and strengthened Commonwealth ties. Between July 2024 and June 2025, total bilateral trade in goods and services between the two nations reached £8 billion—an 11.1% increase from the same period the previous year.

Despite these gains, Nigeria remains susceptible to fluctuations in global oil prices, which still play a dominant role in the country’s external earnings. Economists emphasize the need for Nigeria to sustain its non-oil export diversification drive to ensure long-term foreign exchange stability.

Naira Also Holds Firm Against the U.S. Dollar

Alongside its gains against the pound, the naira continued to hold firm against the U.S. dollar. At the official market, the currency traded between ₦1,435 and ₦1,438/$1 during the week, closing at ₦1,435.03 on November 7—a slight 0.22% decline from the previous session. In the parallel market, rates averaged around ₦1,445–₦1,450/$1.

Year-to-date, the naira has appreciated between 7% and 14% against the dollar, recovering from its mid-year high of ₦1,624/$1 recorded in May 2025. Analysts credit the rebound to increased liquidity in the official market, rising investor confidence, and improved fiscal coordination between the Ministry of Finance and the CBN.

Global Market Dynamics: Pound Faces Pressure

The British pound has come under pressure globally, losing ground against the U.S. dollar due to renewed dollar strength and concerns about slowing UK growth. Earlier in the week, the pound fell to the $1.30 support level before recovering slightly to $1.31 by Friday’s close.

A combination of factors has driven the pound’s weakness: a rally in the U.S. dollar fueled by strong private-sector job growth, rising Treasury yields, and expectations that the U.S. Federal Reserve will delay further rate cuts. In contrast, the Bank of England held its key rate steady at 4% and signaled a possible rate cut in December, adding to bearish sentiment around the pound.

Markets now widely expect a December rate cut, as reflected in short-dated gilt yields and forward curves. This policy divergence—between a patient U.S. Federal Reserve and a dovish Bank of England—has weighed on sterling’s attractiveness for investors.

The Broader Picture: What Lies Ahead

Global markets experienced volatility this week, with U.S. equities retreating from record highs as investors reassessed valuations in the technology and artificial intelligence sectors. Safe-haven demand boosted the dollar, while gold prices fluctuated as investors liquidated positions to cover equity losses.

For Nigeria, the immediate outlook remains cautiously optimistic. The naira’s resilience is expected to persist if current reforms are maintained and oil prices remain relatively stable. However, external shocks—such as U.S. interest rate changes or global commodity price swings—could test this stability.

In the week ahead, market participants will be watching for key data releases, including the UK’s employment figures and the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) reports. These data points will likely shape investor sentiment across currency markets.

Bottom Line

The naira’s performance against the pound and dollar in November reflects growing confidence in Nigeria’s economic management and foreign exchange reforms. With the British pound staying below ₦1,900/£ and the U.S. dollar holding around ₦1,435/$1, the local currency appears poised to end the year on a stronger footing—provided fiscal discipline, steady oil inflows, and investor confidence are maintained.

Nigeria’s 2025 currency rally demonstrates that, despite structural challenges, resilience and reform can yield tangible gains for both the economy and the naira.

Veritas Kapital Swings to ₦1.8 Billion Profit in Q3 2025, Surpasses Forecast Expectations

  • dollaers
  • November 8, 2025
  • Business
  • 0 comments

Veritas Kapital Assurance Plc has reported a profit before tax of ₦1.8 billion for the third quarter (Q3) of 2025, marking a sharp turnaround from a ₦2.8 billion loss recorded in the same period last year. The performance also exceeded the company’s internal forecast of ₦867 million, underscoring a significant rebound in profitability and operational efficiency.

For the nine-month period ended September 2025, Veritas Kapital posted a ₦4.88 billion pre-tax profit, representing a 64% increase from the ₦2.97 billion recorded during the same period in 2024.

While the company’s insurance revenue fell 40% year-on-year to ₦3.73 billion, its strong cost management and favorable reinsurance arrangements helped deliver a much-improved bottom line.

Key Highlights (Q3 2025 vs Q3 2024)

Insurance Revenue: ₦3.73 billion, down 40% from ₦6.19 billion
Insurance Service Expenses: ₦6.02 billion, down 44% from ₦10.75 billion
Net Investment Income: ₦717.1 million, marginally down 0.5% from ₦720.4 million
Net Insurance & Investment Result: ₦2.54 billion, compared to a ₦3.05 billion loss in Q3 2024
Other Operating Income: ₦180.8 million, compared to ₦1.47 billion in Q3 2024
Other Operating Expenses: ₦1.54 billion, up from ₦1.23 billion
Profit for the Period: ₦526.4 million, versus a ₦2.3 billion loss last year
Basic EPS: ₦0.08, up from a negative ₦0.33
Total Assets: ₦36.36 billion, down 3.2% year-on-year
Total Equity: ₦19.47 billion, up 27% from ₦15.29 billion in December 2024

Management Commentary

Dr. Adaobi Nwakuche, Managing Director and CEO of Veritas Kapital Assurance Plc, described the company’s performance as a “reflection of purpose translated into progress.”

She stated, “We see these results as validation that when an organization aligns its strategy with its values, growth becomes inevitable. Every milestone we achieve is built on trust — the trust of our customers, brokers, partners, and employees, who continue to give their best every day.”

Dr. Nwakuche attributed the strong recovery to effective cost optimization, risk-sharing through reinsurance, and operational discipline, which collectively helped offset the impact of weaker revenue.

Performance Drivers

The biggest contributor to the company’s turnaround was the substantial improvement in its net insurance and investment result, which rose to ₦2.54 billion from a ₦3.05 billion loss in Q3 2024.

A major factor behind this improvement was the 62% reduction in insurance service expenses, falling from ₦10.75 billion to ₦6.02 billion. This sharp decline resulted from streamlined operations, improved claims management, and better cost control across underwriting and administration functions.

In addition, Veritas Kapital benefited from a positive net reinsurance result — meaning the firm received more from reinsurers than it paid in premiums. This helped cushion the effect of claims and boosted cash flow.

By effectively sharing risk with reinsurers, the company reduced its exposure to large claims, strengthened liquidity, and maintained a more stable earnings outlook.

Balance Sheet and Financial Stability

As of September 2025, total assets stood at ₦36.36 billion, slightly lower than the ₦37.54 billion reported in 2024, reflecting a modest dip in cash and cash equivalents. However, Veritas Kapital remains financially sound, with substantial assets supporting its underwriting capacity.

More notably, total equity climbed 27% year-on-year, rising to ₦19.47 billion from ₦15.29 billion in December 2024. The improvement was primarily driven by retained earnings, which improved to ₦2.1 billion from a ₦1.2 billion deficit a year earlier.

Dr. Nwakuche emphasized that this growth in shareholders’ funds demonstrates the company’s strengthened balance sheet and renewed investor confidence. She said, “Our equity growth reflects the strength of our strategies and the trust our investors place in us. With a solid capital base, we are well-positioned to continue investing in innovation, customer experience, and sustainable growth.”

Market Performance and Capital Plans

Veritas Kapital’s share price has mirrored its improving fundamentals. Beginning the year at ₦1.36, the stock has appreciated to ₦1.85 as of November 7, 2025, representing a 36% year-to-date increase.

In addition, the company recently announced plans to raise ₦15 billion in fresh capital through a private placement, a move aimed at strengthening its solvency margin, expanding underwriting capacity, and positioning the firm for future growth opportunities in the Nigerian insurance market.

Bottom Line

Despite a significant decline in insurance revenue, Veritas Kapital Assurance Plc’s Q3 2025 results underscore a successful turnaround driven by disciplined cost management, positive reinsurance recoveries, and improved investment performance.

The return to profitability — and the strong nine-month performance — demonstrates that Veritas Kapital’s ongoing transformation strategy is yielding measurable results. With a strengthened balance sheet, improved equity, and renewed investor confidence, the insurer appears well-positioned for sustained growth heading into 2026.

Nigeria’s $2.3 Billion Eurobond Issue Raises Concerns Over High Borrowing Costs — Nairametrics CEO

  • dollaers
  • November 8, 2025
  • Economy News
  • 0 comments

Nigeria’s latest $2.3 billion Eurobond issuance has reignited debate over the country’s rising debt costs, as Ugodre Obi-Chukwu, Founder and Chief Executive Officer of Nairametrics, described the deal as “expensive” and reflective of persistent investor caution toward Nigeria’s macroeconomic stability.

Speaking on Moneyline with Nancy, Obi-Chukwu noted that the yields — 8% for the 10-year tranche and 9% for the 20-year tranche — are unusually high for sovereign debt, particularly for a country seeking to rebuild investor confidence after years of fiscal strain and currency instability.

“Nine percent over twenty years is high. Unless Nigeria can refinance when rates fall, this could become a burden. The pricing reflects investor caution around Nigeria’s risk profile,” Obi-Chukwu explained.

High Demand, But At a High Price

The Federal Government announced the Eurobond sale earlier in the week, revealing that the issuance was oversubscribed by more than 400%. While this indicates strong investor appetite for Nigerian debt, Obi-Chukwu warned that the enthusiasm came at a steep cost.

“The oversubscription shows that foreign investors still see value in Nigeria,” he said. “But the yields also tell a different story — they show that investors are pricing in significant risk. Borrowing at this rate may help short-term funding needs, but it raises long-term sustainability questions.”

According to analysts, the high yields stem from global inflationary trends, elevated interest rates, and Nigeria’s own fiscal and exchange rate vulnerabilities. With debt servicing already consuming a large share of government revenue, further borrowing at such levels could intensify fiscal pressures.

Investor Sentiment and Debt Sustainability

Obi-Chukwu’s comments come amid growing scrutiny of Nigeria’s debt management strategy. Despite recent reforms by the Ministry of Finance and the Debt Management Office (DMO), Nigeria’s debt-to-GDP ratio and interest payment obligations remain concerning.

He emphasized that investor confidence, while improving, remains conditional — foreign investors are engaging with Nigerian assets, but demanding higher compensation for perceived risks such as exchange rate volatility, inflation, and policy inconsistency.

“The cost of borrowing cannot be ignored,” Obi-Chukwu cautioned. “It’s encouraging to see investor demand, but if the government continues to issue debt at these rates, it will weigh on our fiscal balance in the long run.”

He added that Nigeria must focus on enhancing revenue generation, curbing inflation, and building policy credibility to gradually lower borrowing costs in future debt issuances.

Zenith Bank’s Performance Reflects Sector Resilience

Turning to the domestic financial sector, Obi-Chukwu praised Zenith Bank Plc for delivering an exceptional third-quarter (Q3 2025) performance despite the tough macroeconomic backdrop.

The bank’s gross earnings rose 16% year-on-year to ₦3.4 trillion, driven largely by a 41% surge in interest income to ₦2.7 trillion. Pre-tax profit reached ₦917 billion, which he described as “mouth-watering for shareholders.”

Even after adjusting for foreign exchange revaluation gains that inflated 2024 results, Obi-Chukwu said Zenith’s core earnings performance remains “remarkably strong.”

“Stripping out FX gains, this is a lot more impressive than expected,” he noted. “Zenith continues to show that disciplined cost management and balance sheet strength are key to surviving in a high-rate environment.”

He further commended the bank for maintaining a net interest margin of around 12%, despite high funding costs, and keeping its cost-to-income ratio below 50%.

“That’s commendable,” he said. “With total assets at about ₦31 trillion, Zenith remains one of the most operationally efficient banks in the country.”

However, he advised Nigerian banks to diversify income streams and develop hedging strategies as foreign exchange gains normalize. “With the naira strengthening, banks must prepare for margin compression. Hedging will be critical,” he emphasized.

Outlook: Cautious Optimism for 2026

Looking ahead, Obi-Chukwu expressed cautious optimism for the Nigerian banking industry going into 2026. He noted that while some lenders are grappling with inflation and rising operating costs, others — especially the FUGAZ banks (First Bank, UBA, GTCO, Access, and Zenith) — continue to post solid growth.

“We’ve seen a mixed bag — some banks are thriving, others are adjusting. But overall, the sector is profitable, deposits are rising, and total assets are expanding. The FUGAZ banks alone now control over ₦150 trillion in assets,” he said.

He suggested that the next phase of growth for Nigerian banks should focus on efficient capital deployment, technological innovation, and risk diversification in anticipation of more volatile macroeconomic conditions.

In conclusion, while Obi-Chukwu welcomed Nigeria’s renewed access to international capital markets, he underscored the importance of managing the cost of debt carefully. “Borrowing is not inherently bad,” he said, “but when you’re paying 9% over 20 years, it must come with a clear plan for growth, stability, and fiscal responsibility.”

Banks’ Deposits with CBN Rise to ₦4.8 Trillion as Market Liquidity Surges

  • dollaers
  • November 8, 2025
  • Bank
  • 0 comments

Nigeria’s banking system entered November awash with liquidity as commercial banks significantly increased their cash deposits with the Central Bank of Nigeria (CBN), signaling heightened risk aversion within the money market. As of Friday, November 7, 2025, total deposits placed by banks under the Standing Deposit Facility (SDF) reached an impressive ₦4.816 trillion, one of the highest levels seen in recent quarters.

This marks a notable rise from the ₦4.424 trillion recorded just two days earlier on November 5, underscoring banks’ preference for the safety of CBN deposits over lending in the interbank or credit markets. Under the SDF, banks earn a 24.8% interest rate for parking idle funds overnight — a relatively high risk-free return compared to potential market exposures.

Banks Prefer Safety Over Lending

The CBN’s weekly financial report showed that banks have been increasingly channeling their excess liquidity into the apex bank’s deposit window rather than extending credit to businesses or engaging in interbank lending. Between October 31 and November 5, total system deposits rose steadily — from ₦2.301 trillion at the end of October to ₦2.916 trillion on November 4, and further to ₦2.994 trillion the next day.

While these figures might suggest abundant liquidity within the financial system, the situation is far more nuanced. Market analysts say that the liquidity is concentrated among a few large deposit money banks (DMBs) that dominate reserves, while smaller institutions continue to face funding pressures. This uneven distribution has kept interbank trading volumes subdued, as smaller banks struggle to access affordable short-term funding.

In effect, the system appears “liquid” on paper, but the money is not circulating efficiently. Rather than channeling funds into productive lending or interbank markets, the bulk of the excess liquidity remains parked at the CBN — a symptom of both risk aversion and structural inefficiencies in Nigeria’s banking framework.

Government Debt Operations Inject Fresh Cash

Mid-week financial data from the CBN showed that the Debt Management Office (DMO) injected additional liquidity into the financial system through primary-market Treasury bill and bond operations. On Thursday, November 6, the DMO successfully raised ₦546.24 billion in new government securities while simultaneously repaying ₦662.76 billion in maturing obligations.

This transaction resulted in a net liquidity injection of approximately ₦116.52 billion, which further boosted the cash positions of banks. The data also revealed that banks’ opening balances — a key measure of available reserves at the start of the trading day — rose from ₦141.11 billion on November 5 to ₦247.17 billion on November 7, indicating stronger reserve buffers.

However, despite these inflows, banks remained hesitant to lend, preferring to hold onto liquidity. This cautious behavior highlights ongoing market uncertainties, particularly around foreign exchange volatility, inflation pressures, and collateral constraints.

Minimal Borrowing Reflects Low Credit Appetite

Interestingly, while deposits at the CBN surged, borrowing through the Standing Lending Facility (SLF) — the CBN’s emergency borrowing window — remained extremely low at just ₦2.85 billion. The sharp contrast between trillions of naira parked in deposits and negligible borrowing underscores one thing: banks are flush with cash but unwilling to take risks.

In a normally functioning money market, banks with surplus liquidity lend to those with temporary shortfalls, creating a vibrant interbank ecosystem. But persistent structural frictions, including liquidity concentration, regulatory uncertainty, and operational inefficiencies, continue to hinder the redistribution of funds. This has led to an environment where liquidity remains “trapped” within the central bank, limiting the multiplier effect on the broader economy.

Policy Implications for the CBN

The surge in deposits presents both opportunities and challenges for the CBN. On one hand, the high volume of funds parked in the SDF gives the central bank flexibility to sterilize excess liquidity — a move that helps curb inflationary pressures. On the other hand, it highlights a weak monetary policy transmission mechanism: ample liquidity in the system is not translating into higher credit growth or lower market interest rates.

The situation could prompt the CBN to deploy additional Open Market Operations (OMO) to absorb some of the surplus cash and stabilize short-term interest rates. Still, as long as risk appetite among banks remains low, such liquidity management measures may only provide temporary relief.

Analysts Caution on Structural Gaps

Market experts warn that sustained reliance on the SDF reflects deeper structural issues within Nigeria’s financial system. While high SDF balances enable the CBN to control short-term liquidity and inflation, they also discourage interbank activity and dampen credit creation, ultimately constraining private-sector growth.

Economists suggest that the solution lies in structural reforms aimed at improving collateral mobility, risk-sharing mechanisms, and market confidence. By creating a more efficient financial infrastructure, liquidity could circulate more evenly, supporting productive investment and economic expansion.

For now, dealers expect overnight interest rates to remain low, barring major fiscal withdrawals or large-scale foreign exchange interventions. However, the broader challenge remains clear: until liquidity in the banking system is effectively channeled into credit and investment, the benefits of rising reserves and abundant cash will remain largely unrealized for the Nigerian economy.

Naira Falls to ₦1,438.5/$1 at Official Market Despite Rising Foreign Reserves

  • dollaers
  • November 8, 2025
  • Economy News
  • 0 comments

The Nigerian Naira ended the week on a slightly weaker note against the U.S. dollar, closing at ₦1,438.5/$1 at the official foreign exchange market on Friday, November 7, 2025. This marginal depreciation came despite a continued increase in the country’s foreign reserves, which analysts say reflects stronger foreign exchange inflows and improved macroeconomic management by the Central Bank of Nigeria (CBN).

According to figures published on the CBN’s official website, the Naira experienced minor fluctuations throughout the week — trading at ₦1,438/$1 on Monday, ₦1,441.75/$1 on Tuesday, ₦1,440/$1 on Wednesday, and ₦1,437.5/$1 on Thursday, before settling at ₦1,438.5/$1 on Friday. Although these movements appear relatively stable, the overall trend still indicates a modest depreciation from the previous week’s close of ₦1,427.5/$1.

Parallel Market Records Slight Appreciation

In contrast to the official window, the Naira showed modest strength in the parallel (black) market, appreciating to ₦1,445/$1 from ₦1,455/$1 recorded midweek. Traders in Lagos and Abuja reported that the currency traded between ₦1,445 and ₦1,460 per dollar during the week, suggesting mild volatility but a generally firmer outlook compared to late October.

Market participants attributed the parallel market’s relative stability to a surge in dollar inflows from diaspora remittances, coupled with end-of-month conversions by corporate entities. These inflows temporarily boosted liquidity and helped narrow the gap between the official and parallel market rates. However, currency traders warned that the trend may be short-lived as festive season demand and election-related spending are expected to heighten dollar demand in the coming weeks.

Week-on-Week Performance and Context

On a week-on-week basis, the Naira weakened by ₦11, closing at ₦1,438.5/$1 compared to ₦1,427.5/$1 the previous Friday, October 31, 2025. The slight depreciation interrupted a two-week streak of gains recorded in late October, when the local currency appreciated due to increased confidence in CBN reforms and improved FX liquidity conditions.

The current pullback signals renewed pressure on the Naira as importers ramp up dollar purchases ahead of the Christmas and New Year shopping season. Analysts also point to speculative trading activity and short-term market corrections as contributing factors to the week’s weaker close.

Foreign Reserves Climb to $43.32 Billion

Despite the mild depreciation, Nigeria’s foreign reserves continued their upward trajectory, rising to $43.32 billion from $43.17 billion the previous week. This marks one of the country’s strongest reserve levels in months and reflects increased oil receipts, steady portfolio inflows, and growing investor confidence in the Nigerian economy.

The CBN attributed the rise in reserves to a combination of factors, including autonomous FX inflows from non-oil exports, higher crude oil production, and renewed foreign investor participation following the implementation of market-friendly policies under Governor Olayemi Cardoso’s leadership.

“The steady accumulation of reserves indicates that Nigeria’s external sector is gaining resilience,” a CBN official noted. “This provides a stronger buffer to manage short-term volatility and supports confidence in the Naira.”

Analysts Warn of Near-Term Volatility

While the recent reserve build-up offers a positive signal, financial analysts caution that seasonal pressures could reintroduce volatility in the short term. As the country approaches the festive season and the start of political campaign spending for the 2027 general elections, dollar demand is expected to rise significantly.

Economist Abas Adelakun told reporters that although the fundamentals are improving, the next few months will test the durability of the CBN’s reforms.

“What we’re seeing now is cautious optimism,” he said. “Foreign reserves are climbing, but structural challenges remain. Sustaining the Naira’s stability will require deepening export diversification and curbing speculative activity.”

Analysts from Standard Bank echoed similar concerns, warning that fiscal spending linked to electioneering could weaken the Naira in 2026 and 2027.

“Election-related expenditures and primary campaigns scheduled to begin in early 2026 will likely boost liquidity and increase foreign exchange demand,” the bank’s report stated. “However, a robust reserve position should allow the CBN to manage short-term pressures effectively.”

Policy Outlook and Budget Context

President Bola Ahmed Tinubu, in his December 2024 budget presentation, projected a stronger and more stable currency for 2025. The administration based its budget assumptions on an exchange rate target of ₦1,500/$1 and a reduction in inflation from 34.6% to 15% by year-end.

While the current exchange rate remains above the government’s target, analysts argue that the recent improvement in reserves, coupled with ongoing monetary tightening, could help the Naira regain ground over the medium term.

However, the sustainability of these gains depends on Nigeria’s ability to expand non-oil exports, boost fiscal revenues, and control inflation. Without addressing these structural constraints, experts warn that short-term improvements may not translate into lasting currency stability.

Meta Reportedly Earns $7 Billion Annually from Scam Ads on Facebook and Instagram — Reuters Investigation Reveals Widespread Fraud

  • dollaers
  • November 8, 2025
  • Fintech
  • 0 comments

A new investigative report has revealed that Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, earns an estimated $7 billion annually from advertisements linked to fraudulent or high-risk activities. The findings, based on internal Meta documents obtained by Reuters, paint a troubling picture of how scam ads have become embedded in the company’s advertising ecosystem — and how Meta’s internal policies may indirectly profit from them.

According to the documents, Meta displays as many as 15 billion “high-risk” ads per day, many of which promote fraudulent e-commerce schemes, illegal gambling platforms, and banned medical products. These ads target users globally through Facebook’s and Instagram’s algorithmic systems, often exploiting Meta’s data-driven personalization features to reach vulnerable audiences.

Internal Tolerance for Scam-Linked Revenue

The documents reviewed by Reuters indicate that Meta’s internal enforcement systems use automated detection tools to flag suspicious advertisers. However, the company reportedly bans these advertisers only when its systems are 95% certain that the ads are fraudulent. When confidence falls below that threshold, Meta does not remove the ads — instead, it imposes higher advertising fees on the suspected accounts as a penalty, effectively allowing them to continue operating while generating revenue for the company.

This practice means that Meta benefits financially from potentially fraudulent advertisers, even as users are exposed to harmful content. Once users engage with such ads, Meta’s ad-personalization algorithms often recommend similar advertisements, creating a cycle in which scam-related content continues to spread across the platform.

Scam Ads Represent Up to 10% of Meta’s Annual Revenue

Across various internal departments — including finance, safety, and government affairs — Meta employees estimated that scam and prohibited advertisements contributed roughly 10.1% of the company’s total revenue in 2024, equivalent to about $16 billion. These earnings were described internally as “violating revenue,” referring to income generated from ads that breach Meta’s internal policies or local advertising laws.

More concerningly, the reports show that Meta had internal limits on how much revenue it was willing to sacrifice to combat fraudulent advertising. In early 2025, enforcement teams reportedly could not take actions that would cost the company more than 0.15% of its total revenue — about $135 million out of the $90 billion generated in the first half of the year. This restriction effectively placed a cap on the company’s willingness to remove scam ads that could hurt its financial performance.

Meta Responds: “Data Misrepresented”

In response to Reuters’ findings, Meta spokesperson Andy Stone rejected the characterization of the documents, stating that they “present a selective and misleading view” of the company’s internal processes. Stone explained that the 10.1% figure was a “rough and overly inclusive” estimate that also captured “many legitimate ads.”

“We aggressively fight fraud and scams because people on our platforms don’t want this content, legitimate advertisers don’t want it, and we don’t want it either,” Stone said. He added that Meta has made “substantial progress,” claiming that user reports of scam ads have fallen by 58% over the past 18 months and that the company removed 134 million scam-related ads globally in 2025 alone.

Despite these efforts, Reuters reports that Meta’s own internal assessments contradict its public statements. A May 2025 internal safety division report found that Meta platforms were implicated in one-third of all successful scams in the United States, while another analysis concluded that “it is easier to advertise scams on Meta than on Google.”

Regulators Investigate Meta’s Role in Global Scam Epidemic

Meta’s handling of scam ads has drawn scrutiny from regulators across several jurisdictions. The U.S. Securities and Exchange Commission (SEC) is reportedly investigating Meta’s advertising operations and its potential role in facilitating large-scale online financial scams.

In the United Kingdom, a 2023 report by the Financial Conduct Authority (FCA) found that Meta’s platforms were responsible for 54% of all payments-related scam losses in the country — more than any other social media platform combined.

Experts argue that Meta’s advertising model, which prioritizes engagement and personalization, has unintentionally become fertile ground for fraudsters. Once a user clicks on or interacts with a scam ad, Meta’s algorithms serve them more similar content, amplifying exposure and risk.

Meta’s Broader Enforcement Actions

In a separate update released earlier this year, Meta announced that it had taken enforcement action against about 500,000 accounts involved in spam or fake engagement behavior during the first half of 2025. The company also removed around 10 million fake profiles, many of which were impersonating well-known content creators.

These actions were part of Meta’s broader initiative to improve “feed integrity” and promote authentic user content. However, the company’s update did not address enforcement measures specifically related to scam ads, leaving questions about how aggressively Meta intends to confront the issue moving forward.

A Growing Ethical Dilemma

The revelations add to growing criticism of Meta’s business practices and the ethical implications of its advertising algorithms. As digital fraud surges worldwide, consumer advocates and lawmakers are urging Meta to adopt stricter ad verification systems and greater transparency in its revenue sources.

While Meta insists that it is committed to protecting users and cleaning up its platforms, the internal documents suggest a fundamental tension between profit maximization and user safety — one that regulators may now seek to resolve through tighter oversight and new accountability frameworks.

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