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Finance

Best escrow services in Nigeria for secure B2B transactions

The Ultimate Guide to the Best Escrow Services in Nigeria for Secure B2B Transactions (2026)

  • dollaers
  • June 3, 2026
  • Finance
  • 0 comments

If you run a business, freelance agency, or retail venture in Nigeria, you already know that trust is the most expensive currency in the market. Whether you are a web developer in Port Harcourt coding a custom WordPress site, an Instagram vendor in Lagos shipping bulk goods, or a client looking to hire a reliable service provider, the same paralyzing question always arises: “Who drops the money or the service first?”

For years, the Nigerian digital economy has been plagued by the “payment before delivery” versus “payment on delivery” debate. Buyers are terrified of being scammed by ghost vendors—the infamous “what I ordered vs. what I got” syndrome. On the flip side, genuine service providers and artisans are equally afraid of delivering high-quality work only to be blocked by clients when it is time to pay.

This trust deficit stifles business growth, ruins customer acquisition strategies, and limits the potential of small businesses. The definitive solution to this problem is the use of secure payment gateways and, more specifically, smart escrow services.

In this comprehensive guide, we will explore why escrow is mandatory for secure B2B transactions in Nigeria, how it protects against fraud, and why the 360 App is quickly becoming the ultimate digital ecosystem for secure, trust-based local business.

What is an Escrow Service?

In the simplest terms, an escrow service acts as an impartial, secure third party that temporarily holds funds in a transaction. The escrow platform keeps the money safe until both the buyer and the seller are completely satisfied that the terms of their agreement have been met.

Think of it as a digital middleman with an ironclad vault. When a buyer hires a service provider or orders goods, they deposit the payment into the escrow account. The vendor receives a notification that the funds are secured. The vendor then does the work or ships the product. Once the buyer receives and approves the delivery, the escrow service releases the funds directly into the vendor’s business bank account.

By integrating escrow payment protection, neither party takes on financial risk. It is the ultimate tool for dispute resolution and buyer protection in the Nigerian e-commerce and gig economy space.

Why Nigerian Businesses Must Adopt Escrow Payments

For small and medium enterprises (SMEs) and independent contractors, relying solely on direct bank transfers is a massive liability. Here is why integrating an escrow system is the smartest financial security decision you can make in 2026:

1. Total Eradication of Fraud and Scams

The primary advantage of an escrow platform is secure funds management. It eliminates the risk of chargeback fraud for the seller and non-delivery fraud for the buyer. When funds are locked in a smart contract or secure gateway, scammers are immediately deterred, leaving you to deal strictly with verified, serious clients.

2. Professional Credibility and Client Trust

When you tell a new prospect, “I use an escrow service, so your money is 100% safe until you approve my work,” your conversion rates will skyrocket. It positions you as a premium, trustworthy brand. High-paying B2B clients and corporate organizations are far more likely to outsource local tasks to vendors who offer this level of financial security.

3. Seamless Dispute Resolution

Business disagreements happen. A project scope might change, or a product might get damaged in transit. Traditional bank accounts offer no mediation. Premium escrow services come with built-in dispute resolution protocols, ensuring that if a disagreement occurs, the funds remain frozen until a fair settlement is reached.

4. Financial Planning and Guaranteed Payouts

For gig workers, freelance developers, and artisans, knowing that the money is already committed gives you the peace of mind to focus on the job. You no longer have to waste valuable hours chasing invoices, begging for part-payments, or worrying about client defaults.

Who Needs Escrow Services in Nigeria?

Escrow is not just for massive real estate deals or corporate mergers; it is an essential business management tool for everyday transactions:

  • Freelancers and Tech Talent: Developers, graphic designers, and writers who need to secure client payments before writing a single line of code.

  • Artisans and Tradesmen: Plumbers, electricians, and interior decorators who need to buy materials without taking on out-of-pocket risks.

  • Online Marketplace Vendors: Clothing, electronics, and wholesale suppliers who want to offer buyer protection to new customers across the country.

  • Service Procurement Managers: HR teams and business owners looking to securely hire remote and local talent for temporary tasks.

The Ultimate Solution: The 360 App

While there are standalone payment gateways available, patching together different apps for chatting, finding clients, and managing payments is exhausting. Nigerian service providers and buyers need an all-in-one ecosystem.

Enter the 360 App.

The 360 App is not just an application; it is a complete “Circle of Trust” designed specifically to connect local professionals, artisans, and vendors with verified clients while completely automating the financial security of the transaction.

How the 360 App Secures Your Hustle

The developers of the 360 App understood that secure B2B lead generation requires a flawless payment infrastructure. Here is why the 360 App stands out as the premier escrow and business management solution in Nigeria:

  • Location-Based Discovery: The app allows buyers to easily search for and match with verified local professionals and vendors right in their city.

  • Real-Time Negotiation (Instant Chat): Before any money changes hands, buyers and sellers can use the app’s instant chat feature to share files, clarify project details, and negotiate terms seamlessly.

  • Paystack-Powered Smart Escrow: This is the game-changer. The 360 App utilizes Paystack—one of Africa’s most secure and robust payment gateways—to power its smart escrow feature. When an agreement is reached, the buyer funds the escrow. The funds are securely locked by 360. The vendor does the work with total confidence. Upon successful delivery, the funds are instantly released.

  • Tasks, Gigs, and Rewards: Beyond standard B2B transactions, the 360 App empowers Nigerian entrepreneurs by allowing them to monetize their free time. Users can discover online and offline tasks, complete them, and earn secure payouts through the same trusted ecosystem.

Transition Your Business Today

You can no longer afford to lose high-ticket clients because of trust issues, nor should you risk your hard-earned money paying unverified vendors. Whether you are looking to promote your small business in Nigeria, reach new prospects in your city, or simply hire a reliable artisan without the anxiety of being scammed, the 360 App is your ultimate business companion.

Take control of your digital transactions, protect your business capital, and join thousands of Nigerians who are already trading safely within the Circle of Trust.

Stop risking your money on unprotected transfers. Secure your next transaction by downloading the 360 App today:

  • For Android Users: Download 360 App from the Google Play Store

  • For iOS Users: Download 360 App from the Apple App Store

Empower your business, secure your payments, and simplify your life with 360.

FAAN Raises Cargo Port Charges to N20 from N7, Effective Immediately

  • dollaers
  • January 31, 2026
  • Finance
  • 0 comments

The Federal Airports Authority of Nigeria (FAAN) has increased cargo port charges from N7 to N20, marking the first upward review of the tariff in nearly two decades.

Nairametrics obtained the information exclusively from FAAN on Friday, January 30, 2026. According to the authority, the new rate takes effect immediately.

FAAN said the decision was driven by prolonged inflation, severe foreign exchange pressures, and the need to fund critical airport and cargo infrastructure upgrades.

What FAAN is saying

FAAN explained that the cargo port tariff had remained unchanged since 2008, despite major shifts in Nigeria’s macroeconomic environment over the past 18 years.

The authority said cumulative inflation over the period stood at about 287%, making the former N7 charge financially unsustainable. Based on National Bureau of Statistics (NBS) data, FAAN noted that a service priced at N7 in 2008 should now cost about N27.09 to retain the same real value.

However, the authority said it deliberately set the new tariff at N20, below the inflation-adjusted level, to limit the cost burden on cargo operators and maintain competitiveness.

“FAAN has increased tariffs after careful consideration of current economic realities. Our tariffs have remained static since 2008. Over the past 18 years, Nigeria has experienced significant inflation (approximately 287%) and a drastic depreciation of the naira. This adjustment is essential to sustain and upgrade critical airport infrastructure, which has become financially unsustainable under the old rates,” FAAN said.

The authority also cited foreign exchange pressures as a key factor. In 2008, the naira exchanged at about N118/$1, compared with roughly N1,500/$1 today. FAAN said this has driven up the naira cost of imported airport infrastructure components, including runway asphalt, aerodrome lighting systems, and fire service equipment parts, increasing operating and maintenance costs by over 1,000% in naira terms.

Clarifying concerns about multiple charges, FAAN said its cargo port charge is separate from fees charged by private concessionaires. The FAAN levy covers shared airport infrastructure such as runways, taxiways, perimeter fencing, security, access roads, and airfield lighting, while concessionaire fees relate to cargo handling, storage, and documentation within private terminals.

Tariff impact and infrastructure plans

FAAN said that even with the revised N20 tariff, Nigeria’s cargo port charges would remain competitive within the West African region. The authority noted that charges at Nigerian airports were previously lower than those at key regional hubs, including Kotoka International Airport in Ghana and Cotonou Airport in Benin.

The authority said the adjustment aligns Nigeria more closely with regional standards while preserving its attractiveness to air cargo operators and investors.

FAAN also downplayed the potential inflationary impact, stating that the cargo port charge represents only a small fraction of total air freight costs. It argued that improved infrastructure and efficiency could help offset some of the cost impact through reduced delays, faster turnaround times, and better cargo handling processes.

Revenue from the revised tariff will be reinvested in cargo-related infrastructure. Planned projects include rehabilitation of aprons and access roads, enhanced perimeter security, and upgrades to airfield lighting. FAAN also plans to deploy a Cargo Community System for digital documentation, introduce a truck call-up system at the Premier Cargo Terminal, and develop additional domestic cargo infrastructure.

FAAN said cargo operators and other industry stakeholders have been formally notified of the review and that consultations are ongoing. The authority described the tariff adjustment as a strategic move to build a more resilient, efficient, and future-ready air cargo ecosystem in Nigeria.

Why this matters

Cargo port charges are fees collected by airports to maintain and operate shared infrastructure used for air cargo operations. These include runways, taxiways, security systems, perimeter fencing, access roads, and airfield lighting. They are distinct from private cargo handling and warehouse charges.

The increase to N20 means higher per-unit revenue for FAAN and could marginally raise overall air freight costs, with possible pass-through effects on import and export pricing.

Coming 18 years after the last review, the adjustment reflects a long-delayed alignment with inflation and exchange rate realities and could influence Nigeria’s competitiveness as a regional air cargo hub.

What you should know

The FAAN tariff hike follows other recent cost increases in Nigeria’s aviation sector. On December 1, 2025, the Nigerian Civil Aviation Authority (NCAA) introduced an additional $11.5 security levy under the Advance Passenger Information System (APIS), raising the total security charge per ticket to $31.50.

The APIS levy applies to all passengers arriving in or departing from Nigeria and is remitted by airlines to the NCAA. The system supports border control, passenger tracking, and enhanced security, while also allowing airlines to recover compliance costs.

Together, these developments signal rising cost pressures across Nigeria’s aviation value chain, even as regulators and operators seek to modernise infrastructure and improve operational efficiency.

PayPal’s Return Sparks Boycott Calls and Mixed Reactions Among Nigerians

  • dollaers
  • January 28, 2026
  • Finance
  • 0 comments

PayPal’s renewed engagement with Nigeria has triggered intense debate across social media, with reactions ranging from outright boycott calls to cautious optimism and pragmatic acceptance driven by business considerations.

The renewed activity follows a partnership between PayPal and local fintech company Paga, disclosed by Paga’s founder, Tayo Oviosu. The collaboration now allows Nigerian users to receive payments via PayPal—an important shift from years of limited functionality, during which Nigerians could make outbound payments but were unable to receive funds.

The development marks a significant change in PayPal’s long-standing posture toward Nigeria and has reopened conversations around trust, inclusion, and the evolving fintech landscape in the country.

Backlash and boycott calls

Many Nigerians reacted angrily, arguing that PayPal’s return does not resolve years of frustration linked to account freezes, withheld funds, and what they described as unfair targeting of Nigerian users.

Several users on X accused the company of stigmatizing Nigerians as fraud risks and called for a boycott in favour of homegrown fintech platforms. Critics argue that local payment solutions are faster, cheaper, and more responsive, and that PayPal’s re-entry should not be celebrated without accountability for past actions.

Others expressed fears that Nigerian users—particularly freelancers and gig workers—could again face prolonged fund holds, limited customer support, and sudden account restrictions. Some warned that users should proceed with caution, noting that dispute resolution mechanisms may still be weak and that Nigerian consumers lack strong institutional backing in cross-border financial conflicts.

Business-first perspectives

Despite the backlash, a number of users offered a more pragmatic view, framing PayPal’s return as a commercial decision rather than an act of goodwill.

According to this perspective, PayPal’s renewed interest in Nigeria reflects the country’s growing role in the global digital economy. With more Nigerians earning foreign income through freelancing, remote work, startups, and digital services, significant transaction volumes were already flowing through alternative platforms such as Payoneer, Deel, Raenest, and even cryptocurrencies.

Some commentators argued that PayPal risked being sidelined if it remained absent from Nigeria’s fast-evolving payments ecosystem. In this view, the company’s return is simply a response to market pressure and competition, similar to recent moves by Nigerian banks to restore international Naira card services.

Others suggested that the partnership with Paga could be part of PayPal’s broader strategy to push new products, including its PYUSD stablecoin, into high-adoption markets like Nigeria, where financial tools often scale rapidly through widespread use.

Divided reactions, personal choices

While some Nigerians welcomed the development as an additional option for cross-border payments, many insisted they would stick with existing platforms they trust. Several users noted that competition in the fintech space ultimately benefits consumers, even if individuals choose not to use PayPal.

Still, the emotional divide remains sharp. For some, PayPal’s history in Nigeria is difficult to forget. For others, the return represents an opportunity—particularly for businesses and freelancers seeking more global payment channels.

What you should know

PayPal’s limited operations in Nigeria date back to concerns over fraud and weak regulatory frameworks. In the early 2000s, PayPal restricted services in several African countries, including Nigeria, citing high levels of credit card fraud and the absence of robust identity and banking systems. Fraud rings were reported to have exploited stolen financial details to create and operate PayPal accounts, posing risks to the platform’s global network.

Under the new arrangement, Nigerian users can link their PayPal accounts to Paga wallets, view PayPal balances within the Paga app, convert funds, and withdraw in Naira. Whether this marks a lasting reset in PayPal’s relationship with Nigeria or simply a cautious re-entry remains to be seen.

FGN Bond Auction Overshoots N900bn Offer, Allots N1.54trn in January 2026

  • dollaers
  • January 27, 2026
  • Finance
  • 0 comments

The Federal Government of Nigeria (FGN) allotted a total of N1.54 trillion at its January 2026 bond auction, significantly exceeding the N900 billion originally offered, as strong investor demand underscored sustained confidence in government securities despite elevated interest rates.

The figures were released by the Debt Management Office (DMO) following the auction held on January 26, 2026. The exercise involved the re-opening of three existing FGN bond instruments, all of which recorded heavy oversubscription, prompting the government to raise its allotment size well above the initial offer.

Settlement for all successful bids is scheduled for January 28, 2026.

Strong demand across maturities
Investor appetite was robust across all tenors on offer, with longer-dated bonds attracting particularly strong interest, even amid wide bid ranges and lingering macroeconomic uncertainty.

The 18.50% FGN February 2031 bond had an offer size of N300 billion but attracted total bids of N514.45 billion from 124 submissions. Of this amount, N398.19 billion was allotted, including N17.50 billion issued through non-competitive allotments.

The 19.00% FGN February 2034 bond recorded the strongest demand, with subscriptions reaching approximately N1.01 trillion against an offer of N400 billion. Total allotment on the instrument stood at N576.33 billion, including N113.22 billion allotted on a non-competitive basis.

The 22.60% FGN January 2035 bond also saw heavy interest, attracting bids of N731.40 billion for an offer size of N200 billion. The DMO allotted N570.16 billion on the bond from 176 successful bids.

In total, the three instruments accounted for the N1.54 trillion allotted, far exceeding the original N900 billion on offer.

Marginal rates clear below coupons
Despite aggressive bidding, marginal rates across the three bonds cleared well below their respective coupon rates, reflecting investors’ willingness to lock in long-term yields.

The February 2031 bond, with a remaining tenor of about five years, cleared at a marginal rate of 17.62%, with bids ranging between 15.85% and 18.50%.

The February 2034 bond, with roughly eight years to maturity, cleared at a marginal rate of 17.50%, within a bid range of 16.00% to 19.40%.

The January 2035 bond, which has close to nine years remaining, cleared at a marginal rate of 17.52%, despite bids extending as high as 25.90%.

The DMO clarified that while allotments were made at the marginal rates, the original coupon rates of 18.50%, 19.00%, and 22.60% will be paid over the life of the respective bonds.

What this signals
The auction results point to strong demand along the yield curve, suggesting that investors remain comfortable locking in long-term FGN securities despite inflation concerns, tight monetary conditions, and fiscal pressures.

Clearing marginal rates below coupon levels also indicates intense competition among bidders and confidence in the government’s ability to meet its debt obligations.

Flashback and context
The strong January outcome follows earlier signals of sustained demand for FGN bonds. In December 2025, the Federal Government raised N596.47 billion at its bond auction, exceeding the N460 billion initially offered through the re-opening of the FGN August 2030 and FGN June 2032 bonds.

Between January and December 2025, total FGN bond allotments amounted to approximately N5.12 trillion, according to DMO data. In January 2025 alone, the government raised N669.94 billion against an offer size of N450 billion.

What you should know
FGN bond auctions remain a central pillar of Nigeria’s domestic borrowing strategy and serve as key benchmarks for pricing other fixed-income instruments in the market.

The strong oversubscription recorded in January 2026 reinforces the role of government securities as a preferred investment destination for institutional investors seeking attractive yields and relative safety in a volatile economic environment.

Currency Outside Nigeria’s Banking System Hits Record N5.4 Trillion at End of 2025

  • dollaers
  • January 25, 2026
  • Currencies, Finance
  • 0 comments

Nigeria’s currency held outside the formal banking system rose to an all-time high of N5.4 trillion by the end of 2025, highlighting a significant increase in the volume of physical cash retained by individuals and businesses across the country. The latest figures underscore a growing reliance on cash, despite long-standing policy efforts aimed at promoting digital payments and reducing the economy’s dependence on physical currency.

The data, released as part of the Central Bank of Nigeria’s (CBN) money supply statistics, provides insight into liquidity conditions and cash usage patterns within the economy. The sharp rise in currency outside banks occurred alongside a broader expansion in money supply, with total money supply closing the year at approximately N124.4 trillion. This combination has raised fresh questions about the effectiveness and pace of Nigeria’s transition toward a cashless economy.

Currency in circulation also reached a historic high of N5.7 trillion in December 2025, indicating that only a relatively small portion of total cash remained within commercial bank vaults. The figures suggest that a significant share of naira notes continues to circulate directly among households, traders, and businesses rather than being held in deposit accounts.

What the Data Shows

Currency outside banks represents physical cash that is not deposited within the formal banking system. As of December 2025, this figure stood at N5.4 trillion, the highest level ever recorded. This surpassed the previous record of N5.125 trillion observed in December 2024.

While currency outside banks typically rises toward the end of each year due to increased spending during the festive season, the scale of the increase in 2025 was particularly notable. Throughout the year, currency outside banks averaged about N4.5 trillion, before accelerating sharply in the final months and crossing the N5 trillion threshold.

Total currency in circulation followed a similar trajectory, climbing steadily and closing the year at N5.7 trillion. The sustained growth in physical cash usage appears to contrast with the CBN’s long-standing objective of reducing cash transactions through digital payment systems, electronic transfers, and financial technology platforms.

Although the current CBN leadership continues to support digital financial inclusion, recent monetary policy actions suggest a greater reliance on orthodox tools—such as interest rate adjustments and liquidity management—rather than direct restrictions on cash availability.

Policy Context and Historical Background

The current rise in currency outside the banking system marks a significant shift from the approach adopted by the previous CBN leadership. In the period leading up to Nigeria’s 2023 general elections, the central bank pursued an aggressive strategy to limit cash availability, culminating in one of the sharpest contractions in currency circulation in recent history.

In January 2023, currency outside banks fell to a record low of N792.1 billion following the introduction of the naira redesign policy. The initiative significantly restricted access to physical cash, triggering widespread economic disruption, supply chain challenges, and public dissatisfaction. Although the policy was officially framed as a measure to improve monetary control and curb illicit financial activities, many observers believed it was also intended to limit the use of cash during the election period—an allegation the CBN denied.

Since the appointment of the current CBN Governor, Yemi Cardoso, the Bank has recalibrated its approach. Policy focus has shifted toward stabilising prices, strengthening the currency, and restoring confidence in the financial system, while allowing cash to circulate more freely alongside digital payment options.

Implications for the Financial System

The increased availability of cash outside the banking system has contributed to the rapid expansion of Nigeria’s agency banking network, particularly Point-of-Sale (PoS) operations. Access to cash has become a major source of income for thousands of PoS operators nationwide, especially in areas with limited bank branch coverage.

However, rising demand for cash services has also driven up operating costs. The price of PoS terminals has increased significantly between 2023 and 2025, influenced by inflation, foreign exchange pressures, and higher logistics expenses. Entry-level terminals that once sold for N15,000 to N20,000 now cost around N21,500, while more advanced smart devices have more than doubled in price.

At the same time, the CBN has tightened regulatory oversight of agent banking activities. New rules require geo-tagging of PoS terminals and impose penalties starting from N5 million, with additional daily fines for continued non-compliance. These measures reflect growing efforts to formalise and monitor cash distribution channels, even as physical cash remains deeply embedded in Nigeria’s economic activity.

Overall, the record level of currency outside banks highlights the complex balance Nigeria faces between promoting digital finance, ensuring liquidity, and maintaining monetary stability in an economy where cash continues to play a central role.

Nigerian Financial Market Liquidity Rises to N2.78 Trillion Despite Central Bank Tightening

  • dollaers
  • January 25, 2026
  • Finance
  • 0 comments

Liquidity conditions in Nigeria’s financial markets strengthened significantly in the third week of January 2026, even as the Central Bank of Nigeria (CBN) intensified efforts to withdraw excess funds from the banking system. Data from market analysts show that average system liquidity climbed to N2.78 trillion as of Friday, January 23, 2026, representing a 31.75% increase compared to the N2.11 trillion recorded the previous week.
Analysts at Cowry Assets Management Limited attributed the sharp rise in liquidity to substantial maturity inflows and sustained investor participation across money market instruments. This expansion occurred despite aggressive monetary operations by the CBN aimed at tightening financial conditions and curbing surplus liquidity.
According to the analysts, the primary driver of the liquidity surge was the repayment of approximately N2.2 trillion in Nigerian Treasury Bills (NTB) maturities during the week. These inflows outweighed significant liquidity debits arising from both Treasury Bills auctions and Open Market Operations (OMO) settlements conducted by the central bank.
Specifically, liquidity was reduced by about N1.06 trillion from NTB auction sales held midweek, alongside an additional N1.3 trillion debited through OMO bill settlements earlier in the week. Despite these sizable withdrawals, the volume of maturing instruments ensured that the overall system liquidity remained elevated.
Market data further revealed that the CBN conducted multiple liquidity mop-up operations, withdrawing over N3 trillion through two separate auctions. However, the scale of inflows from maturing instruments proved sufficient to offset the tightening measures, allowing excess liquidity to persist within the financial system.
Interest Rates and Money Market Conditions
The central bank’s tightening stance translated into upward pressure on money market rates. Interbank Offered Rates (NIBOR) rose across all tenors, reflecting the costlier funding environment faced by financial institutions.
The overnight NIBOR increased by 2 basis points to 22.84% by the close of the week, while the one-month, three-month, and six-month tenors also recorded moderate increases. Funding conditions remained tight, with the overnight funding rate rising by 10 basis points to 22.79%, while the Open Repo Rate remained unchanged at 22.50%.
Similarly, Nigerian Treasury Index (NITTY) yields trended higher across most maturities. While the one-month NITTY declined slightly by 6 basis points to 16.64%, longer tenors recorded increases, with yields reaching 16.69% for three months, 17.88% for six months, 19.33% for nine months, and 21.18% for twelve months.
Treasury Bills Market Activity
Activity in the Treasury Bills market reflected a cautious investor sentiment, as rising yields triggered selective sell-offs in the secondary market. Average secondary market yields increased by 37 basis points week-on-week to 18.50%, indicating a bearish trading tone.
At the primary market auction, the CBN offered N1.15 trillion in Treasury Bills, attracting strong investor interest with total subscriptions of approximately N3.4 trillion. Nearly 98% of bids were concentrated in the 364-day tenor, highlighting investor preference for longer-dated instruments amid expectations of sustained high yields.
The central bank allotted about N1.1 trillion, with stop rates on the 91-day and 182-day bills rising to 15.84% and 15.65%, respectively. In contrast, the 364-day bill eased marginally to 18.36%, reflecting slight moderation at the long end of the curve.
Earlier in the week, the CBN also conducted an OMO auction, offering N600 billion across the 203-day and 245-day tenors. The auction attracted robust demand, with subscriptions totaling N2.9 trillion, resulting in N2.6 trillion in allotments. Stop rates settled at 19.38% for the 203-day bill and 19.39% for the 245-day bill.
Outlook for the Coming Week
Analysts expect system liquidity to remain positive in the near term, supported by an estimated N900 billion in OMO maturities and anticipated inflows from the Federation Accounts Allocation Committee (FAAC). However, upcoming liquidity pressures could limit the pace of rate moderation.
Notably, a planned N900 billion Federal Government of Nigeria bond auction scheduled for January 26, alongside repayments exceeding N900 billion, may partially offset inflows and keep funding rates elevated.
Cowry Assets noted that while liquidity conditions are expected to remain supportive, funding costs may stay above recent averages as investors position ahead of full-year 2025 earnings releases and navigate evolving monetary conditions.
Overall, the latest data underscores the complex balance facing Nigeria’s monetary authorities, as liquidity continues to expand despite tightening measures, reflecting deeper structural dynamics within the financial system and the broader economy.

DMO to Raise ₦900 Billion in January 2026 FGN Bond Auction

  • dollaers
  • January 20, 2026
  • Finance
  • 0 comments

The Debt Management Office (DMO) has announced plans by the Federal Government of Nigeria (FGN) to raise ₦900 billion through the reopening of three Federal Government bonds at its January 2026 bond auction.

According to a circular issued by the DMO on Monday, the auction is scheduled for January 26, 2026, with settlement expected on January 28, 2026. The offer spans medium- and long-term maturities, giving investors a range of duration options across the yield curve.

What the DMO is offering

The January auction will feature three reopened FGN bond instruments with a combined target of ₦900 billion:

  • ₦300 billion from the 18.50% FGN February 2031 bond

  • ₦400 billion from the 19.00% FGN February 2034 bond

  • ₦200 billion from the 22.60% FGN January 2035 bond

Each bond is offered at ₦1,000 per unit, with a minimum subscription of ₦50,001,000 and additional purchases in multiples of ₦1,000.

The coupon rates on these bonds are fixed, while successful bidders will pay a price that reflects the yield-to-maturity at which the auction clears, plus any accrued interest. Interest payments will be made semi-annually, and principal will be repaid in full at maturity under a bullet repayment structure.

Strong demand for government securities

DMO data shows that total FGN bond allotments in 2025 reached about ₦5.12 trillion, highlighting sustained investor appetite for government securities despite a high-interest-rate environment.

This strong participation underscores the role of FGN bonds as a preferred asset class for pension funds, insurance companies, banks, and other institutional investors seeking predictable returns and low credit risk.

Why the government uses bond reopenings

The FGN has consistently relied on bond reopenings as a strategic tool to finance budget deficits while deepening Nigeria’s domestic debt market.

Reopened bonds allow the government to raise funds through existing instruments with known coupon rates, providing pricing certainty for investors and reducing the administrative costs associated with issuing entirely new securities. They also improve market liquidity and help strengthen the domestic benchmark yield curve, which is critical for pricing other fixed-income instruments.

Key incentives for investors

Investors participating in the January 2026 auction will benefit from several statutory and regulatory advantages:

  • The bonds qualify as approved investments under the Trustee Investment Act.

  • They are recognised as government securities under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), making them eligible for tax exemptions.

  • The bonds will be listed on Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange, ensuring transparency and secondary market tradability.

  • FGN bonds count as liquid assets for banks in the computation of liquidity ratios and are backed by the full faith and credit of the Federal Government.

Applications for the auction must be submitted through authorised Primary Dealer Market Makers (PDMMs), in line with the DMO’s guidelines.

The bigger picture

The January 2026 bond auction forms part of the FGN’s broader domestic borrowing strategy, aimed at financing budgetary obligations while offering investors stable, long-term investment options. At the same time, it supports the continued growth and sophistication of Nigeria’s domestic debt market.

John Holt Shares Gain 42.9% YTD in 2026, but Risks Still Loom

  • dollaers
  • January 20, 2026
  • Finance, Stocks
  • 0 comments

Shares of John Holt PLC have climbed 42.9% year-to-date (YTD) in 2026, placing the stock 15th on the Nigerian Exchange (NGX) YTD performance table. The rally has been even sharper in the short term, with the stock rising over 70% month-to-date, drawing fresh attention from market watchers.

Ordinarily, such a move would signal renewed investor confidence. In John Holt’s case, however, the surge raises difficult questions—especially given the stock’s 37% decline in 2025, when it ranked among the 20 worst-performing equities on the exchange.

For a company coming off a weak year, a gain of more than 40% in just half a month—without a clear shift in fundamentals—demands a closer look. Is this the start of a genuine turnaround, improving growth expectations, or simply a speculative bounce in a thinly traded stock?

The company at a glance

Founded in 1961 and listed on the Nigerian Stock Exchange in 1974, John Holt is one of Nigeria’s long-standing corporate names. Over the decades, it has evolved into a diversified conglomerate with operations spanning renewable energy solutions, diesel and gas generators, firefighting equipment, rapid intervention vehicles, air-conditioning systems, marine boats, and the export of non-oil products.

The company operates within the conglomerate sector, alongside peers such as UACN, Transcorp, SCOA, and Chellarams.

Financial performance: uneven and volatile

Between 2021 and 2025, John Holt generated ₦11.18 billion in cumulative revenue. While the headline figure appears solid, the underlying trend is far less reassuring. Revenue fluctuated sharply year to year, resulting in an average annual growth rate of just over 5% across the five-year period.

Profitability has been even more erratic. The company recorded losses in 2021 and 2023, modest profits in 2022 and 2025, and one exceptional year in 2024. In that standout year, profit after tax surged to ₦2.47 billion, with earnings per share jumping to ₦6.34. By 2025, EPS had fallen back sharply to ₦1.20.

A closer look at the 2024 numbers shows why caution is warranted. A significant portion of that year’s profit did not come from core operations. Instead, it was driven by about ₦3.45 billion in other income, largely from the disposal of property, plant and equipment, as well as support from the company’s parent.

In simple terms, John Holt sold assets and benefited from one-off backing in 2024—boosting profit temporarily rather than sustainably.

When those exceptional items faded in 2025, profitability dropped sharply, a decline compounded by persistently high costs. Cost of sales—driven mainly by finished goods—absorbed over 75% of revenue, highlighting weak operating efficiency and thin margins.

This distinction matters because equity markets ultimately reward companies that can generate consistent, recurring earnings, not occasional windfalls.

Why the sharp rally in early 2026?

Trading data offers important clues. Over the past three months, John Holt has ranked 108th by trading activity on the Nigerian Exchange, underscoring how thinly traded the stock is.

Since the start of 2026, the shares have frequently traded flat at ₦7.00, with opening, high, low, and closing prices often identical across multiple sessions. Meanwhile, daily volumes have swung wildly—from a few tens of thousands of shares to several hundred thousand in a single day.

This pattern suggests a market driven more by a scarcity of sellers than by broad-based demand. In such low-liquidity conditions, even modest buying can push prices sharply higher. Once prices start moving, momentum traders often pile in, reinforcing gains regardless of whether the underlying business has materially improved.

Is the stock undervalued?

Based on available fundamentals, John Holt does not appear undervalued in a way that clearly justifies strong, long-term investor conviction.

For a convincing undervaluation case, the company would need to demonstrate sustained earnings growth, improving margins, and the ability to generate ₦1 billion or more in recurring annual profits without reliance on asset sales or parent-company support. That evidence is not yet visible.

The bottom line

John Holt’s 2026 rally is a textbook example of how share prices can move ahead of fundamentals in thin markets. The recent gains appear driven largely by low liquidity, limited free float, and speculative interest rather than a clear operational turnaround.

While the company returned to profitability in 2025, margins remain weak and costs continue to consume most of its revenue. Until earnings become more consistent and are clearly driven by core operations, caution remains the sensible stance for investors.

The $130bn Heist: How Africa’s Energy Elite Are Vacuuming Global Capital

  • dollaers
  • January 18, 2026
  • Finance
  • 0 comments

This isn’t innovation in the Silicon Valley sense. It’s infrastructure arbitrage—and the West is only just catching on.

In the pantheon of African enterprise, figures like Femi Otedola, Tony Elumelu, and Aliko Dangote didn’t build empires by chasing isolated deals. They engineered systems. And nowhere is that distinction more consequential than in energy.

Across Africa’s power landscape, a quiet revolution is underway. The winners aren’t those with the biggest gas fields or the most megawatts—they’re the ones with the strongest grip on the value chain. From Lagos to Cape Town, Nairobi to Johannesburg, integrated energy platforms are outpacing single-asset projects and pulling in capital at a startling pace.

The numbers are blunt. Roughly 83% of institutional capital now flows into integrated infrastructure platforms, up from about 41% in 2020. This isn’t gradual evolution; it’s a hostile takeover of an old development model that no longer inspires confidence. Capital today isn’t betting on promise—it’s paying for structure.

Africa needs about $130 billion a year in energy investment through 2030 to close its power gap. Yet only 40–45% of that target is being met. The shortfall isn’t due to a lack of money. It’s because capital won’t stay where governance, cash flows, and risk allocation are weak.

The new energy elite understands what capital demands:

  • Bankable contracts that are legally airtight

  • Routing control, including transmission and distribution access

  • Cash discipline with transparent, predictable revenues

  • Downside ownership, ensuring aligned incentives

Miss one, and the money walks.

That reality explains why the era of the single-asset project is fading. Even Dangote’s $19 billion refinery—an engineering marvel—illustrates the risk of monolithic assets concentrated in one jurisdiction. Political exposure, currency volatility, and regulatory bottlenecks can erode confidence fast.

By contrast, groups like Heirs Holdings, Actis, and Cardinal Stone are building multi-asset, multi-country platforms designed for resilience and exit. Otedola’s transformation of Geregu Power is instructive: by integrating gas supply, generation, and wheeling infrastructure, a single plant became an optionality engine. The product isn’t just electricity—it’s negotiating power.

That’s the platform premium. Platform-backed energy assets command valuation uplifts of roughly 30% over standalone projects. The $600 million raised by the Sahara Energy Platform in late 2025 wasn’t priced on kilowatt-hours, but on jurisdictional spread, covenant strength, and exit readiness. Capital is paying for certainty.

Consider Transnational Energy, operating across Nigeria, Zambia, and Uganda. With unified governance and a standardised capital structure, it has attracted over $1.2 billion in investment, offering investors robust covenant protection and a clear exit path. Regulatory diversification, shared infrastructure, and network effects turn assets into systems—and systems into leverage.

Compare that with the traditional model: secure land, sign a PPA, raise project finance, build, and hope the offtaker pays. One tariff delay or currency shock can collapse the entire structure. Platforms absorb those shocks by design, spreading risk across borders, buyers, and revenue lines.

The investment thesis is clear. Africa’s energy future is platform-driven, with potential returns of 3x–5x over the next few years for well-structured vehicles. Capital is rotating toward governance over generation, structure over scale, and exit readiness over raw output.

That’s the paradox. Africa doesn’t need more gas. It needs better systems. Not more plants—but platforms.

The lone entrepreneur keeping a generator running through the night is giving way to covenant-locked, multi-jurisdictional, exit-ready enterprises. The playbook is simple: bundle assets, cross borders, lock in governance, and build with an exit in mind. Sentiment doesn’t attract capital. Structure does.

The titans already know this. The rest are running behind.

Yobe State Clears Gratuities Backlog with ₦15.4bn Payout to Retirees

  • dollaers
  • January 15, 2026
  • Finance, Government
  • 0 comments

The Yobe State Government has announced that it has fully cleared outstanding gratuity obligations owed to retirees of both the state and local governments, spending a total of ₦15.4 billion to offset arrears accumulated over several years.

The disclosure was made on Wednesday in Damaturu by the Secretary to the State Government (SSG), Alhaji Baba Wali, during a press briefing marking six years of the administration of Governor Mai Mala Buni.

According to Wali, the payments have eliminated all gratuity liabilities, providing long-awaited relief to retired public servants across the state. He described the clearance of the backlog as a major social intervention by the administration, aimed at restoring dignity and financial stability to retirees who had waited years for their entitlements.

Security, jobs, and capacity building

Beyond gratuity payments, the SSG outlined several interventions undertaken by the state since 2019. On security, he said the government had procured 250 operational vehicles and 500 motorcycles for security agencies, while more than 300 patrol and specialised vehicles were rehabilitated. In addition, over 2,000 vigilantes, hunters, and hybrid force operatives were engaged to complement formal security operations across the state.

In employment and human capital development, Wali disclosed that the government had recruited 6,449 workers and organised about 35 training programmes for more than 6,395 civil servants. He added that over 26,000 teachers had been trained or retrained, while more than 4,000 teaching and non-teaching staff were recruited into primary and secondary schools statewide.

Infrastructure and social services

On infrastructure, the SSG said approximately 500 kilometres of roads had either been completed or were ongoing. Key projects include the Geidam–Bukarti, Damagum–Gubana, Nguru–Bulanguwa, and Fika–Maluri roads.

He also revealed that the ₦22 billion flyover and underpass project in Damaturu, being executed by Triacta Nigeria Limited, is expected to be delivered in the first quarter of 2026.

In the education sector, Wali said the administration constructed six model schools, seven mega schools, nine girls’ secondary schools, and eight co-educational secondary schools. He added that the government continues to pay WAEC, NECO, and NABTEB registration fees for all students in the state.

Healthcare interventions include the construction or rehabilitation of Primary Healthcare Centres in 140 of the state’s 178 wards, the procurement of 88 tricycle ambulances, and the enrolment of over 300,000 residents into the state health insurance scheme. He also said drugs worth ₦2.3 billion were supplied to the Yobe Drugs and Medical Consumable Management Agency.

On transportation and power, the SSG noted that the state acquired 20 buses for the Yobe Transport Corporation, sold over 100 vehicles at subsidised rates, electrified 25 villages, extended power to more than 200 locations, and ensured 24-hour electricity in all general hospitals.

What you should know

Yobe State’s clearance of gratuity arrears and infrastructure investments build on broader development efforts. In 2024, the African Development Bank approved a $50 million loan for the Yobe State Environmental and Climate Change Action Project (ECCAP), part of a $101.34 million programme to address climate vulnerabilities, improve food security, and enhance livelihoods for over 3.5 million residents. The project also received $30 million co-financing from the Arab Bank for Economic Development in Africa.

In April 2025, the Federal Government commissioned the first phase of a 400-kilowatt solar power plant at the Yobe State University Teaching Hospital in Damaturu under the Renewed Hope Agenda, a move expected to cut power costs, reduce outages, and improve healthcare delivery.

Overall, the state government says the clearance of gratuity arrears underscores its commitment to fiscal responsibility, social welfare, and long-term development.

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