At the same time, total capital importation into Nigeria rose to $10.37 billion, an 83.8% increase compared with the same period in 2025. This is also a 61% rise from the previous quarter.

Telecoms barely registered in the inflow mix, while banking and finance absorbed most of the funds entering the country.

Banking alone pulled in $7.55 billion, while the financing sector followed with $2.43 billion. Together, they accounted for more than 96% of total inflows.

Most of the capital entering the country came through short-term instruments. Portfolio investment topped the list with about 95% of total inflows, and foreign direct investment small at $135 million, or roughly 1.3%.

Telecoms, by comparison, attracted just 0.07% of total inflows, trailing even trading, agriculture, IT services and equities.

The decline in the sector stands out when set against recent years. Telecom capital importation reached $496.27 million in 2025, while it stood at $456.59 million in 2024. In 2023, it dropped to $134.75 million, before rising again in 2022 to $456.83 million.

A steep drop was recorded in the latest quarterly figures as seen. Inflows fell 91% year-on-year from $80.78 million in Q1 2025 and also dropped 93% from $103.36 million in the previous quarter.

Policy changes in the sector have not shifted investor behaviour. Early in 2025, the Nigerian Communications Commission approved a 50% tariff adjustment for operators with an aim to improve revenue and support network expansion.

Operators also increased spending. The commission said telecom companies invested more than N2.5 trillion in infrastructure in 2025. That is over $1 billion in network upgrades.

Even so, foreign inflows did not follow, as investors appear more focused on fixed-income returns than long-term infrastructure commitments. High yields in money market instruments and bonds continue to draw capital.

This means money is coming in, but not where long-term investment is most needed.

Foreign exchange reforms have helped strengthen activity in banking. Still, volatility in the currency market still weighs on long-term decisions, especially in sectors like telecoms that require steady capital planning.

The International Finance Corporation and the World Bank have in past reports pointed to the need for stable, long-term investment conditions in infrastructure-heavy sectors. That gap is very much visible in the current data.

Heavy dependence on short-term inflows leaves productive sectors exposed. Telecoms, manufacturing and agriculture all receive limited foreign capital.

These risks must be looked into as foreign investment in Nigeria drives growth for telecom, banking and many other sectors.

The post Nigeria Telecom Foreign Investment Falls to 4-Year Low Despite $10.37bn Capital Surge appeared first on Tech | Business | Economy.

The NBS report showed that capital inflows from the UK reached $5.08 billion between January and March 2026, representing 49.01 per cent of the total $10.37 billion capital imported into Nigeria during the period.

The UK outperformed other major investment sources, with the United States ranking second after contributing $3.18 billion, equivalent to 30.69 per cent of total inflows. The Republic of South Africa followed with $983.83 million, accounting for 9.49 per cent.

Nigeria recorded a significant increase in capital importation during the quarter, with total inflows rising by 83.83 per cent compared to the $5.64 billion recorded in the first quarter of 2025.

On a quarter-on-quarter basis, inflows also grew by 60.97 per cent from the $6.44 billion recorded in the fourth quarter of 2025.

A breakdown of the inflows revealed that foreign investors continued to favour portfolio investments, which accounted for $9.86 billion or 95.09 per cent of total capital imported during the quarter.

Other investments, including loans and trade credits, contributed $374.48 million, representing 3.61 per cent of total inflows, while Foreign Direct Investment (FDI) accounted for just $135.08 million, or 1.30 per cent of the total.

Sectoral analysis showed that the banking industry remained the primary destination for foreign capital, attracting $7.55 billion, equivalent to 72.79 per cent of total inflows. The financing sector followed with $2.43 billion or 23.42 per cent, while the production and manufacturing sector received $152.27 million, representing 1.47 per cent.

Among financial institutions facilitating capital importation, Standard Chartered Bank recorded the highest volume, handling $4.41 billion or 42.56 per cent of total inflows. Stanbic IBTC Bank followed with $2.78 billion, representing 26.79 per cent, while Rand Merchant Bank facilitated $930.82 million, accounting for 8.97 per cent.

The latest figures suggest sustained confidence among foreign investors, particularly portfolio investors, in Nigeria’s financial markets amid ongoing economic reforms and efforts to stabilise the macroeconomic environment.

However, analysts note that the dominance of short-term portfolio investments and the relatively low level of foreign direct investment highlight the need for policies that attract long-term capital into productive sectors such as manufacturing, infrastructure, technology, and industrial development.

While rising capital inflows are expected to support foreign exchange liquidity and strengthen investor sentiment, experts argue that increasing the share of direct investment will be critical to driving sustainable economic growth, job creation, and industrial expansion.

The post UK Tops Nigeria’s Capital Source in Q1, Contributing 49% of Total Inflows – NBS appeared first on Tech | Business | Economy.

According to the latest Economic Report of the Central Bank of Nigeria (CBN), the sharp decline came as foreign investors increasingly favoured bonds and money market instruments, with foreign portfolio investment rising to $3.37 billion in January from $940 million in December 2025.

The trend highlights a growing preference for short-term debt assets over direct investments in businesses and productive sectors of the economy.

According to the CBN,

“Direct investment fell by 80.0 per cent to $0.03 billion in the review period.” The apex bank, however, noted that total capital inflow into the economy rose significantly during the month.

“The economy recorded a higher inflow of capital during the review period, driven mainly by the significant increase in portfolio investment inflow,” the report stated.

Overall capital importation climbed to $3.52bn in January 2026, compared with $1.25bn recorded in December 2025, largely on the back of increased foreign participation in the domestic fixed-income market.

The report stated that foreign portfolio investment accounted for $3.37bn of the total inflow. “A disaggregation showed that inflow of foreign portfolio investment amounted to $3.37 billion, a surge from the $0.94 billion in December 2025, due to significantly higher inflows for the purchase of bonds and money market instruments,” the CBN said.

Further analysis showed that portfolio investment accounted for 95.72 per cent of total capital inflows during the review period, while direct investment contributed only 0.77 per cent.

Other investment, consisting mainly of loans, accounted for 3.51 per cent of total inflows and declined to $120m from $160m in the preceding month.

The figures suggest that while foreign investors are returning to Nigeria’s financial markets, particularly attracted by high yields on fixed-income securities, appetite for long-term investments in factories, infrastructure, and other productive ventures remains subdued.

Sectoral analysis in the report showed that the banking industry was the biggest beneficiary of foreign capital inflows, attracting 75.15 per cent of the total funds imported into the economy in January.

Financing activities accounted for 22.20 per cent of total inflows, while production and manufacturing received just 1.16 per cent. Investments in shares accounted for 0.76 per cent, with trading and other sectors making up the balance.

The development came amid improved performance in Nigeria’s external sector. The CBN reported that the country recorded a stronger trade position during the review period, supported by higher export earnings and sustained capital inflows.

External reserves rose to $48.88bn in January 2026, providing import cover of 8.93 months for goods and services.

The naira also appreciated by 2.43 per cent at the Nigerian Foreign Exchange Market to N1,416.52/$ from the level recorded in the preceding month.

The report suggests that although macroeconomic conditions and foreign exchange stability have encouraged increased foreign participation in Nigeria’s financial markets, investors continue to favour liquid debt instruments over long-term commitments in the real sector of the economy.

President Bola Tinubu earlier said Nigeria is on course to attract close to $20bn in foreign direct investment in 2026 alone. He attributed the figure to his administration’s systematic removal of regulatory bottlenecks, macroeconomic stabilisation, and transparency reforms.

Tinubu said, “Removing all the bottlenecks gives you the necessary incentives for direct foreign investment into the country. This year alone, I can beat my chest that Nigeria is attracting close to $20bn in foreign direct investments.”

(Source: Punch)

The post FDI into Nigeria Slumps 80% to $0.03 billion in January appeared first on Tech | Business | Economy.

In a significant milestone, TLG Capital also confirmed the first close of the TLG AGIF II fund, raising $75 million towards its $200 million target.

The fund is anchored by the World Bank’s International Finance Corporation (IFC) and backed by a coalition of forward-looking investors: Swedfund, Norfund, and Bpifrance.

Through this partnership, the UK-funded Manufacturing Africa programme will fast track investment by supporting Africa Growth Impact Fund II with due diligence, corporate finance, ESG compliance, gender inclusion, supply chain and manufacturing operations support to eligible manufacturing companies targeted for investment by the fund.

In a challenging economic climate, this collaboration is designed to support Nigerian manufacturers in accessing the capital they need to grow, create jobs and drive long term economic growth.

In view of this, the first Nigerian company enlisted for the UK Manufacturing Africa’s support to raise $7.5 million debt finance under this arrangement is Terra Aqua; an aluminium recycler based in Ogun State.

TLG Capital has expressed interest in investing this whole amount in the company subject to meeting environmental, social and governance (ESG) and other operational performance indicators that Manufacturing Africa will guide the company through.

This single deal has the potential to create 200 direct jobs and 752 indirect jobs utilising a recycling process that requires 95% less energy than producing primary aluminium.

Since 2020, Manufacturing Africa has supported 41 deals that are seeking to raise over $1 billion of foreign direct investment and create 38,000 direct jobs across Nigeria.

Across Africa as a whole, the programme has raised almost $2.4bn and created 102,000 new jobs. With the financial close of 13 of these deals, the programme has directly facilitated the inflow of over $150 million of foreign direct investment into Nigeria.

Speaking on this latest partnership, Mr. Jonny Baxter, the UK deputy high commissioner in Lagos, said:

“A strong manufacturing sector is key to driving economic growth and industrialisation in Nigeria and across Africa. By supporting TLG Capital, we’re fostering greater capital flows into Nigeria, which in turn supports job creation, generates wealth and secures a prosperous future. TLG Capital is one of the key partners we are working with to improve foreign direct investments that support manufacturing in Nigeria, which will have a lasting positive impact on both our economies”

Thomas Pascoe, Manufacturing Africa programme Team Leader, said:

“This landmark investment emphasises the scale of the development opportunity in manufacturing across Africa. Manufacturing Africa has already helped create 102,000 jobs through the $2.4bn of FDI we have supported, and we look forward to working closely with TLG Capital to support investments by the AGID II fund.”

Isha Doshi, co-founder of TLG Capital, said:

“Today, one in four SME loans in Africa is under stress, and yet, the entrepreneurial spirit is unshaken. AGIF II is about capital that understands context—financing that’s flexible, strategic, and backed by advisory horsepower from Manufacturing Africa. TLG AGIF II brings together both capital and capacity building.”

The post DEAL: UK’s Manufacturing Africa Joins Forces with TLG Capital to Boost Manufacturing Sector in Nigeria appeared first on Tech | Business | Economy.

With machines automating tasks and replacing jobs, that looks so possible. Artificial Intelligence (AI), encompassing generative AI, automation, and robotics, has grown from being a niche technology to an indispensable tool no industry or economy must miss out on. 

Globally, investments in AI have increased, with tech companies like OpenAI, Google DeepMind, Anthropic, Microsoft, Amazon and Nvidia pouring a lot into this innovation.

AI’s double role of enhancing productivity and potentially displacing traditional jobs has prompted nations to race towards effective regulation, as seen with the EU AI Act, the US Executive Order on AI, and China’s AI policies to mitigate risks.

For Nigeria, statistics leave us wondering if the country is prepared to handle what AI brings, especially as economic imbalances have already led to high workforce reductions. 

A recent report by Nigerian data company Mustard Insights revealed that 43.7% of business owners in Nigeria reduced their workforce in 2024 due to economic challenges, leading to talks about how AI-induced automation will further impact employment.

Nigeria’s Workforce and the AI Drive

Job Creation vs. Job Displacement

The integration of AI into various sectors can automate tasks traditionally performed by humans. As of February 2024, 13 Deposit Money Banks in Nigeria had integrated AI-powered chatbots into their services, making customer interactions better and reducing the need for humans. While this improves efficiency, it also speaks really loudly about job displacement.

The 2025 Future of Jobs Report projects that AI and information processing technology will displace 92 million jobs while creating 170 million new ones by 2030. This tells us AI’s impact on employment is not just a theory. 

However, the question about Nigeria’s workforce being ready to transition into these new AI-driven roles cannot be ignored.

The Nigeria Business Survival Report 2024 discloses that 85.4% of companies reported an increase in business costs due to inflation, leading many to adopt automation and AI-driven solutions to cut costs. Nonetheless, expenses are still increasing for companies, and AI could become both a tool for efficiency and a driver of job losses.

The Skill Divide & Nigeria’s Readiness

Assessing Nigeria’s readiness for wide AI adoption reveals both strengths and areas needing improvement. The AI Preparedness Index scores sub-Saharan Africa, including Nigeria, at just 0.34, showing a low level of readiness.

Even with the digital skills gap, there are promising signs of AI adoption. A report by Ipsos on behalf of Google found that 70% of Nigeria’s online population is already using generative AI tools, far above the global average of 48%. However, while adoption is high, structured education and skill development are inadequate.

Nigeria’s universities have been slow to integrate AI-focused curricula, leaving a workforce largely unprepared for AI-centric roles. While 41.7% of businesses have diversified their products and services to stay competitive, many still lack the AI expertise necessary to thrive in the digital economy.

Without targeted upskilling initiatives, Nigeria risks facing mass unemployment as automation replaces traditional jobs. Conversely, with strategic investments in education and AI-driven entrepreneurship, the nation can leverage AI as a push for economic growth.

The Economic Impact of AI on Nigeria

AI’s Work in Key Sectors

AI is already changing key industries in Nigeria:

• Finance & Banking: AI-powered fraud detection, credit scoring, and chatbots are simplifying operations.
• Agriculture: AI-driven precision farming and yield prediction tools are improving food production.
• Healthcare: AI-enhanced diagnostics and telemedicine are addressing gaps in healthcare access.
• Manufacturing: AI is driving smart factories and optimized logistics, boosting efficiency.
• Tech & Startups: Nigeria’s AI-driven startups are boosting innovation and economic diversification.

According to the Nigerian Bureau of Statistics, the ICT sector contributed 16.35% to Nigeria’s real GDP in Q3 2024, pointing to the thriving importance of technology even though there was a decline from 19.78% in Q2. Again, Statista projects that Nigeria’s AI market will grow by 27.08% between 2025 and 2030, reaching a market volume of $4.64 billion by 2030.

However, economic instability can hinder this. The Nigeria High Commission reports that Nigeria’s GDP per capita stagnated between 2015 and 2022, with policy missteps, high inflation, and currency devaluation dampening growth. While the current administration has introduced reforms to stabilize the economy, inflation is still pulling down business confidence, prompting companies to cut costs—including workforce reductions.

Foreign Direct Investment (FDI) & AI Startups in Nigeria

The boom of AI startups in Nigeria is attracting huge foreign investment, but infrastructure deficits, inconsistent electricity supply, limited internet penetration, and limited funding challenge the sustained growth.

Nevertheless, Nigeria’s large and youthful population can make up a huge market for AI solutions. With strategic investments in AI education, research, and digital infrastructure, Nigeria can become a hub for AI innovation without boundaries in Africa.

AI Policy, Ethics, and the Future of Work in Nigeria

Regulation and Government Response

Currently, Nigeria is in the early stages of formulating AI regulations. The National Information Technology Development Agency (NITDA) is expected to help build the country’s AI strategy. Observing global regulatory models, such as the EU AI Act and the U.S. Executive Order on AI, can help with ideas to develop our own.

However, the World Bank warns that while recent economic reforms have eliminated fuel subsidies and unified exchange rates, inflation remains high, increasing hardship for businesses and workers alike. Economic instability challenges long-term planning and without a stable economic environment, AI regulation may take a backseat to more immediate financial issues.

Ethics & AI Bias

AI systems trained on non-representative data can exhibit bias, leading to unjust outcomes for Nigerian users. Ensuring ethical AI use requires frameworks that promote fairness, accountability, and transparency.

Added to this, data privacy and security are both big concerns. AI systems process large amounts of sensitive information, and without proper oversight, data breaches and misuse could worsen existing inequalities. Balancing the benefits of automation with the need to protect the human workforce is important to prevent increasing existing inequalities.

What Needs to Happen Next?

• Government & Policymakers: Develop and implement a structured AI strategy, including regulations, infrastructure investment, and AI research support.
• Businesses: Invest in AI upskilling programs to ensure employees stay competitive in the market.
• Individuals: Pursue AI education to stay relevant in this AI-driven job market.
• Global Collaborations: Promote partnerships with AI firms and institutions to facilitate knowledge transfer and technological progress.

Will AI Be a Curse or a Blessing for Nigeria?

The AI revolution is already changing Nigeria’s workforce and economy. While AI threatens traditional jobs, it also brings an opportunity for economic growth.

However, economic instability and high business costs have already led to job losses, as revealed by Mustard Insights. If AI adoption grows without a parallel investment in workforce reskilling, Nigeria could face even greater unemployment rates.

On the other hand, with targeted policies, digital infrastructure investments, and AI-focused education, Nigeria can leverage AI as a tool for innovation and economic growth.

Hence, Nigeria must embrace AI wisely—or risk being left behind in the next industrial revolution.

Finally:

The popular saying goes thus; “AI is not just the future; it is the present. The nations that embrace it wisely will determine the future of work and economic prosperity.” Will Nigeria be one of them?

The post AI Boom: What it Means for Nigeria’s Workforce and Economy appeared first on Tech | Business | Economy.

The renowned body also noted that indigenous oil companies acquiring the assets of divesting international oil companies will not be able to match their investing power.

The EIU, in its latest Country Report on Nigeria, observed that the indigenous companies would not have the same financial power to invest as the multinationals, who had been the major drivers of the Nigerian oil industry since its inception.

It feared that there might be a net withdrawal of foreign direct investment (FDI) in 2024, as it happened in the previous year.

“The wider business environment will remain highly challenging, undermined by corruption, cronyism, rampant insecurity and a giant infrastructure gap.

“Multinationals are increasingly deciding to quit Nigeria or reduce their presence; we estimate there was a net withdrawal of foreign direct investment in 2023, to be repeated in 2024 as naira losses exert pressure on balance sheets carrying large foreign liabilities,” the EIU said.

It is instructing to note that, there have been trends of foreign oil companies have concluded plans to sell their onshore oil businesses to relocate offshore.

Recently, Shell Plc said it had “reached an agreement to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited” to Renaissance, a consortium of five companies comprising four exploration and production companies.

Also, ExxonMobil, Equinor, and Total Energies had all indicated interest in divesting their stakes in Nigeria’s onshore oilfields.

Although, Heineken Lokpobiri, the minister of state petroleum (Oil), said the divestment by some international oil companies was a win-win situation, saying it would make room for indigenous companies to develop capacity within the onshore and shallow water spaces.

Also, the Governor of Imo State, Hope Uzodinma, had accused the foreign oil firms of not being genuine investors, questioning their rationale for abandoning onshore for offshore.

The post Why Low FDI, Mass Exodus of Companies Persist in Nigeria appeared first on Tech | Business | Economy.

The figures obtained from the NBS Q3 Foreign Capital Importation, represents a drop of around 216.46% when compared with the figure for the previous quarter which stood at $605.04 million.

According to the report, on a year-on-year basis, FDI to the manufacturing sector declined by 71.2% from $392.54 recorded in Q3, 2022 to its figure in the quarter under review.

However, in the first nine months of 2023, the manufacturing sector received around $1.14 billion in foreign capital.

This represents an increase of $415.82 million when compared to the $724.75 million received in the same period of 2022.

The report also disclosed that the decline in foreign capital is not unique to the manufacturing sector but to the general economy in Q3.

Total capital importation for Q3 stood at $654.65 million which represents a drop of 36.45% when compared to the figure recorded in Q2 ($1.03 billion).

Every year, foreign capital declined by 43.55% from the $1.16 billion recorded in the same quarter of 2022.

It would be recalled that the manufacturing sector in the past few years has been faced with a series of problems that have curtailed its growth.

These problems include; rising foreign exchange rates, high energy costs occasioned by epileptic power supply, multiple taxation, inflation.

A review of the performance of some manufacturing firms listed on the NGX reveals that 8 companies recorded a foreign exchange loss of -N129.811 billion while only three of these companies recorded a foreign exchange gain of just N3.49 billion.

This coupled with the difficulty of multinationals in the manufacturing space to repatriate cash has resulted in notable exits in recent times. (Independent).

[Featured Image Credit]

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However, the Foreign Direct Investments (FDI) component stood at $47.6 million, indicating a 43.48 percent decline compared to the $84.23 million recorded in Q4 2022, according to a CSEA Africa post.

This also represents the fourth decline in five successive quarters, and a year-on-year decline of over 69 percent compared to $154.97 million in Q1 2022.

The FDI which is the amount of assets commitments of foreigners is an essential factor to growth and development of the economy, as it contributes to employment creation and expansion in output.

This decline, therefore, suggests a persistent drop in foreign investors’ confidence in the economy and could be attributed to some infrastructural gaps in the economy and unstable exchange rates, but more significantly, the political uncertainties in the build-up to the country’s 2023 general elections.

This has implications for overall economic performance and may continue to fall or stay at a low level until the election petitions are over.

Therefore, the government should provide an enabling business environment for foreign investors to come in and retain those available by addressing infrastructural deficits that increase the cost of business operations and eliminating unhealthy regulations that prevent easy repatriation.

It is also essential to address insecurity challenges and to develop a consistent long-term master plan that will direct investment promotion strategies in the country.

There is a need for the government to create an enabling environment for foreign investments, as this contributes a significant proportion of the revenue inflow for the country.

Ultimately, there is a need to improve subnational investment agencies and assist them in enacting business-friendly policies necessary to attract international investments.

The post Nigeria’s FDI Falls by over 43% in Q1 2023 appeared first on Tech | Business | Economy.

CITN’s chairman for Abuja chapter, Kennedy Iwundu, raised this concern during the CITN Week held in Abuja on Thursday.

He emphasized that the prevailing multiple taxation problem has driven some investors to opt for importation rather than establishing production companies, resulting in adverse effects on the country’s business landscape.

Speaking at the CITN Week, themed ‘Tax Reforms Digitalisation and Its Impact on Doing Business In Nigeria,’ Kennedy Iwundu urged tax professionals to focus on the current tax system and devise effective solutions to be presented for tax reforms.

He highlighted that the existing scenario, where the Federal, State, and Local Government Areas each have an extensive list of taxes and levies, poses a significant hindrance to business growth.

Iwundu stressed that the excessive burden of multiple taxation discourages both foreign and local investments from contributing to the growth of the Nigerian economy.

The complexity of the current tax system, which includes multiple federal taxes such as company income tax and various sector-specific collections, presents a serious challenge for investors, according to the CITN chairman.

In a show of support for the Federal Government’s initiatives, the Chartered Institute of Taxation of Nigeria applauded the establishment of the Presidential Committee on Fiscal Policy and Tax Reforms.

President Bola Tinubu recently signed four Executive Orders, including the suspension of the five percent excise tax on telecommunication services and excise duties on locally manufactured vehicles.

Mr. Samuel Agbeluyi, the President of CITN, expressed high expectations that the committee’s mandate would lead to enhanced revenue collection efficiency, promote transparency, foster a healthy tax culture, and encourage voluntary compliance.

To encourage a favorable business climate and attract foreign and local investments, stakeholders stress the urgency of implementing tax reforms and digitalization to streamline the taxation process and alleviate the burden of multiple taxes on businesses in Nigeria.

As the CITN’s call for action gains momentum, the government’s Presidential Committee on Fiscal Policy and Tax Reforms will be tasked with devising and implementing measures to address the issue of multiple taxation and create a more conducive environment for business growth.

Stakeholders hope that these efforts will foster increased foreign investments and bolster the Nigerian economy in the long run

The post CITN Urges FG Action on Multiple Taxation to Boost Foreign Investments appeared first on Tech | Business | Economy.

As at the 31st of March 2022, the black market rate was at N587/$1, which indicates a N29 decline in Q2 2022,11 Jul 2022.

Experts have explained at different fora that the factors causing the weakening of naira include the basic factor of supply and demand, saying if too much naira is chasing scarce dollars; the dollar gets stronger relative to the naira, and vice versa.

Others have argued that global economic shakeup Post-COVID-19 is also having an impact on the naira.

Another school of thought believes that the most important determinant of the value of the naira is whether or not the Nigerian economy is productive and competitive in international trade.

However, a technologist has a solution on how to save naira from further devaluation particularly with the launch of eNaira.

Dr. Oluseyi Akindeinde, the co-Founder and CTO of Digital Encode Limited, called the Central Bank of Nigeria (CBN) to implement eNaira on Blockchain Technology to increase its potency for global competition.

Speaking at the recent Nigeria Computer Society (NCS) International Conference themed: ‘Smart, Secure and Sustainable Nation’, Dr. Adindeinde argued that naira needs to be repositioned in the event of global economic shift and technological advancements for it to compete favourably.

His position:

“We have a problem of currency devaluation. The caveat is that I am not an Economist, but from a technology point of view you would want to ask: Why is the Dollar always sought after as a currency? The primary answer is economic value. Dollar has velocity. Dollar is the only currency you can easily use in any country.

“So, can’t we do the same with Naira? We need to export naira to make it happen. We have started with the eNaira but it is operating in a silo. Can we open up the eNaira and put it in a public blockchain technology.

“Last year, $19.2 billion(USD) was remitted into Nigeria. If you want to make Naira more valuable, then increase the demand. Speak to Nigerians in Diaspora to dollar with eNaira and remit the eNaira to Nigeria via the blockchain technology.  The technology is there to help us.

“Apart from the Diaspora remittances, we can start accepting Foreign Direct Investments in eNaira. Recall that Emirates cried the other week; they couldn’t repatriate $85 million to the UAE. They even threatened to reduce flight operations to Nigeria. With eNaira on blockchain they don’t need to convert naira to dollar before fund repatriation, because anywhere you are in the world you can exchange the eNaira”.

But Mr. Folashodun Shonubi, a Deputy Governor, Operations Directorate at the CBN, speaking through a representative, technically disagreed with Dr. Akindeinde’s proposal thus:

“We believe that the eNaira has the same value as the normal Naira you hold. And if you are changing the money from one currency to another, there has to be a purpose for it; CBN wants to be sure you utilize the fund for the purpose you applied for naira to dollar and vice versa. We have a list of permissible items/activities for which we can allow you to exchange your money – if you want to pay school fees, or if you need the BTA. You can’t just wake up on your own with the decision to buy a dollar unless it meets the requirement. If you have documents to prove you, through our system, you will be able to get forex.

“The only recommended rate is I&E – Import and Export rate. What people call Black Market is just an opportunist situation we have to deal with in the country.

When asked how the exchange rate will be determined with eNaira on the blockchain?

Dr. Akindeinde said that it will largely be determined through a price discovery mechanism by market forces hence as the demand for eNaira increases it will increase its value against the USD and naturally reduce the demand for the United States dollar.

“The remittance is simply to set it off. It will kick-start the demand. What this means is that an Adire maker in Abeokuta can sell her Adire for eNaira and anyone in the world can buy it because access to eNaira wouldn’t now be restricted to people just in Nigeria.

“Anyone from any part of the world would be able to convert their USD to eNaira (on the blockchain) and patronize the adire maker and she doesn’t need to quote in usd or even accept credit card payments.

“It’ll open up markets yet unknown and will completely eliminate the alternative (black) market”, he stated.

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