Business Analysis
CBN Cushioning COVID-19 Impact on the Economy

By Ademola Oyetunji
The year 2020 started on a brighter and prospective note for Nigeria and Nigerians, with the expectation of increased economic activities, arising most especially, from the CBN’s sustained interventions in agriculture and Small and Medium Enterprises (SMEs).
Economic indices also proved this until what was believed to be a localised virus in a town – Wuhan, in China, took on the world ravaging not only economies but with millions of human casualties.
Nigeria is battling to contain it, as no one expected its devastating destructive capacity. Other viruses like SARS and Ebola were not these destructive. It has no doubt brought unquantifiable damage to world’s harmony and economic life.
In a series of intervention by the Central Bank of Nigeria, CBN, at the wake of the novel COVID-19 Coronavirus outbreak, the Bank unveiled a succession of targeted facilities starting with a N50billion credit facility, followed by another N100billion credit support intervention for the health sector.
The Bank’s twin intervention funds were in quick response to the coronavirus pandemic, which has caused unprecedented disruptions in global supply chains, sharp drop in global crude oil prices, chaos in global stock and financial markets, lockdown of large swaths movements of persons in many countries, including Nigeria.
It also berthed here in Nigeria when the CBN was putting final dots on the organisation of its second edition of ‘Going for Growth 2.0’. (The first edition was held in Lagos in June 2019.) It is a Think-tank stakeholder assemblage of practitioners in the private and public sectors, bureaucrats and technocrats, bankers and industrialists concerned about the economic wellbeing of Nigeria.
The stakeholder meeting was held at the head office the Bank and it coincided with the outbreak of the novel COVID-19 virus. The fear of every stakeholder was palpable knowing how fragile the economy is, and having just exited economic recession and on the verge of getting its groove back.
However, the mono-product economy of Nigeria further exposed its fragility and precarious situation, especially with the way advanced economies were crumbling, battling how to salvage the ruins caused by the menace. The Nigeria situation is made worse as its major revenue source is hinged on oil proceeds for sustenance. Previous economic diversification efforts were only achieved on papers without commensurate commitment to achieve the programme.
The CBN Governor shortly on assumption of office admonished the handlers of the economy to brace up for the diversification of the economy to agriculture and non-oil products as the future of oil as source of sustenance is nigh. Emefiele became the lonely voice in this advocacy.
He was proved right when world oil prices dipped in 2015/2016 and the economy slipped into recession. Concerted efforts were made through various monetary policy interventions to revive the economy. He succeeded when hope seemed lost. And ever since he had been on the frontline canvassing for economic diversification and in the same vein frowning at the increasing public debt without commensurate buffers.
He was worried about the unabating internal security crisis caused by militancy and insurgence, particularly in the food producing areas of the country and has gravely affected economic growth, food security, and rising inflation. The CBN had also been concerned about the inadequacy of infrastructure in the economy.
These, and many more, are being addressed by the Bank in intervening in agriculture value chain, power, aviation, cotton and garment industry including ICT and the creative industry, as contained in the Bank’s five-year Policy Thrust.
Notable is the matrimony between the monetary regulator and deposit money banks under the aegis of Bankers’ Committee agreeing to work together for the economy. These were ongoing efforts when COVID-19 made its way into Nigeria.
In his quick response to avert total collapse knowing that the economy does not have the shocks required to weather the pandemic, he in sequence to its earlier held ‘Going for Growth 1.0’ in Lagos last year, conveyed its second edition in expectation of likely economic disruption that may arise with the virus outbreak.
Thus, he rallied a coalition of private sector operators, including industrialists, bankers and business moguls, on the urgent need to jointly combat the emerging COVID-19 crisis in Nigeria, particularly as the international crude oil prices were beginning to dip unprecedently in decades.
Countries around the world are individually and frantically fighting for themselves and their economies with different approaches peculiar to their environment and needs. In this circumstance, Nigeria is not an exception.
The challenge is being a mono-product economy, oil, dwindled fiscal buffers, weak infrastructure, poverty and unemployment. Thus, the challenge at hand is everyone’s problem that requires every hand on the deck.
Godwin Emefiele, the Governor of CBN, had said, “The need for all Nigerians to play a role in this fight cannot be understated as we are quite literally in the fight of our lives. I must highlight the fact that this is not just about bringing money. Your time, your services, your products will all be helpful.”
Thus, from the foregoing, coupled with efforts being put in place, suitable to Nigeria’s peculiar needs in combating the virus and immune the economy from crisis, the CBN Governor rallied a coalition, the Coalition of Private Sector Against COVID-19, CACOVID, to support the Presidential Task Force on COVID-19 set up by the Federal Government to coordinate its response.
He outlined the objectives of the coalition to include mobilising private sector thought leadership; mobilise private sector resources; increase general public awareness, education and buy-in; provide direct support to private and public healthcare’s ability to respond to the crisis and support government effort knowing that with the dwindled revenue, the government alone at this period cannot handle this.
The Coalition Against COVID-19 (CACOVID) is a private sector task force in partnership with the Federal Government, the Nigeria Centre for Disease Control (NCDC) and the World Health Organisation (WHO) with the sole aim of combating Coronavirus, COVID-19, in Nigeria.
This Coalition is tasked to pull resources across industries to provide technical and operational support while providing funds and building advocacy through aggressive awareness drives. In addition to the efforts of the federal government, the Coalition will provide and equip medical facilities in the six geopolitical zones in Nigeria.
This also involves the creation of testing, isolation and treatment centers, and include the provision of Intensive Care Units (ICUs) and molecular testing labs.On its part to the cause, the CBN announced a N50 billion targeted credit facility stimulus package with 5 percent interest rate, that aims among others, to cushion the adverse effects of COVID-19 on households and MSMEs, by supporting households and MSMEs whose economic activities have been significantly disrupted by the pandemic virus, and stimulate credit to MSMEs to expand their productive capacity through equipment upgrade, and research and development.
While the twin N100 billion credit support intervention for the health sector seeks to strengthen the industry’s capacity to meet potential increase in demand for healthcare products and services. Pointedly, the CBN noted that “the scheme is to provide credit to indigenous pharmaceutical companies and other healthcare value chain players intending to build or expand capacity”.Emefiele further noted that, “the scheme is expected to improve public and private investment in the healthcare sector, facilitate improvements in healthcare delivery and reduce medical tourism to improve foreign exchange conservation”.
Obviously acknowledging MSMEs as the heart of any economy, the N50 billion scheme will be financed from the Micro, Small and Medium Enterprises Development Fund (MSMEDF) to cover key economic activities including agricultural value chain, hospitality (accommodation and food services), airline service providers, manufacturing and value addition, trading and any other income generating activities as may be prescribed by the CBN.
To accomplish its objective, NIRSAL Microfinance Bank has been chosen as the financial institution for the Scheme. The N100 billion health intervention fund as expected is to be funded from the Real Sector Support Facility-Differentiated Cash Reserves Requirement (RSSF-DCRR) and has Deposit Money Banks and Development Finance Institutions (PFIs) as eligible to disburse the fund.
The CBN action comes against the background of the governor’s pledge on assumption of office in 2014, when he promised to make the Bank a catalyst for economic growth. This underlies several monetary policy measures he had initiated to keep the economy running. He did not stop at that, he announced a N1.1trillion stimulus package to also support local manufacturing and boost import substitution to ensure that laboratories, researchers, and innovators work with global scientists to patent and produce vaccines.
These efforts were initiated against global monetary and fiscal responses to the debilitating effect of the COVID-19 attacks across the world in general, and Nigeria in particular. In the United States, the Congress approved about $2 trillion stimulus package in response to the economic impacts of COVID-19. While corporations will be the biggest recipients of the bailout, some of the fund will be paid directly to Americans hit by the pandemic with those directly impacted by the economic effects of COVID-19 have been slated to receive robust government support.
The United Kingdom, had also launched a stimulus package to stabilise Britain’s virus-hit economy, which include the government paying the wages of workers throughout the country. So also, is India, among other countries.
The federal government of Nigeria has also announced a N500 billion stimulus package as the fiscal response to keep the economy afloat. Though its details have not been revealed, as it is awaiting National Assembly approval.
The CBN policy response to COVID-19 has thus provided a calm in the economy, helping manufacturers to continue production and keep plants running to meet domestic demand without arbitrary price hike to account for the rising cost of raw materials.
These unprecedented initiatives to support pharmaceutical and healthcare companies are commendable, given the shutdown of countries across the world, the rising spread of the COVID-19 virus in Nigeria, and sustained panic buying of pharmaceutical products domestically.
With the drop in the world price of crude oil, hovering around $20 – $26 p/b, about 57 percent below budget benchmark and revenue expectations, there is therefore an urgent need for the government to complement the CBN initiatives and go beyond its monetary interventions and fashion a pragmatic and actionable fiscal stimulus package to assuage the effects of the lockdown on the poor and businesses. Oyetunji wrote from Ibadan, Oyo State
Business Analysis
Nigeria Customs Generates over N1.75trn Revenue in 2025
By Joel Oladele, Abuja
The Nigeria Customs Service (NSC) has generated an impressive N1,751,502,252,298.05 in revenue during the first quarter of 2025.
The Comptroller-General (CG) of the Service, Bashir Adeniyi, disclosed this yesterday, during a press briefing in Abuja.
According to Adeniyi, the achievement not only surpasses the quarterly target but also marks a substantial increase compared to the same period last year, reflecting the effectiveness of recent reforms and the dedication of customs officers across the nation.
“This first quarter of 2025 has seen our officers working tirelessly at borders and ports across the nation.
I’m proud to report we’ve made real progress on multiple fronts—from increasing revenue collections to intercepting dangerous shipments,” Adeniyi stated.He attributed this success to the reforms initiated under President Bola Tinubu’s administration and the guidance of the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun.
The CG noted that the revenue collection for Q1 2025 exceeded the quarterly benchmark of N1,645,000,000,000.00 by N106.5 billion, achieving 106.47% of the target. This performance represents a remarkable 29.96% increase compared to the N1,347,705,251,658.31 collected in Q1 2024.
Adeniyi highlighted the month-by-month growth, noting that January’s collection of N647,880,245,243.67 surpassed its target by 18.12%, while February and March also showed positive trends.
“I’m pleased to report the Service’s revenue collection for Q1 2025 totaled N1,751,502,252,298.05.
“Against our annual target of N6,580,000,000,000.00, the first quarter’s proportional benchmark stood at N1,645,000,000,000.00. I’m proud to announce we’ve exceeded this target by N106.5 billion, achieving 106.47% of our quarterly projection. This outstanding performance represents a substantial 29.96% increase compared to the same period in 2024, where we collected N1,347,705,251,658.31.
“Our month-by-month analysis reveals even more encouraging details of this growth trajectory,” Adeniyi said.
In addition to revenue collection, Adeniyi said the NCS maintained robust anti-smuggling operations, recording 298 seizures with a total Duty Paid Value (DPV) of ₦7,698,557,347.67.
He stated that rice was the most seized commodity, with 135,474 bags intercepted, followed by petroleum products and narcotics.
“From rice to wildlife, these seizures show our targeted approach,” Adeniyi remarked, noting the NCS’s commitment to combating smuggling and protecting national revenue.
Adeniyi also highlighted key initiatives, including the expansion of the B’Odogwu customs clearance platform and the launch of the Authorized Economic Operators Programme, which aims to streamline processes for compliant businesses. The NCS’s Corporate Social Responsibility Programme, “Customs Cares,” was also launched, focusing on education, health, and environmental sustainability.
Despite these achievements, the CG noted that the NCS faced challenges, including exchange rate volatility and non-compliance issues. Adeniyi acknowledged the need for ongoing adaptation and collaboration with stakeholders to address these challenges effectively.
Looking ahead, the NCS aims to continue its modernization efforts and enhance service delivery, ensuring that it remains a critical institution in Nigeria’s economic and security landscape.
“Results speak louder than plans; faster clearances through B’Odogwu, trusted traders in the AEO program, and measurable food price relief from our exemptions. We’ll keep scaling what works,” he concluded.
BUSINESS
NSIA Net Assets Hit N4.35trn in 2024
By Tony Obiechina Abuja
The Nigeria Sovereign Investment Authority (NSIA) yesterday disclosed that its net assets grew from N156bn in 2013 to N4.35 trillion in 2024.
Similarly, the Authority has remained profitable for 12 consecutive years, leading to cumulative retained earnings of N3.
74 trillion in 2024.Managing Director and Chief Executive Officer of NSIA, Aminu Umar- Sadiq made these disclosures at a media engagement in Abuja, highlighting its audited financial results for the 2024 fiscal year.
According to him, the results underscored the resilience of the authority’s investment strategy and the strength of its earnings, driven by a well-diversified revenue base and robust risk management practices, despite a challenging global macroeconomic and geopolitical environment.
Total operating profits, excluding share of profits from associates and Joint Venture (JV) entities, increased from N1.17 trillion in 2023 to N1.86 trillion in 2024, driven by the strong performance of
NSIA’s diversified investment portfolio, infrastructure assets, gains from foreign exchange movements, and derivative valuations.
In addition, Total Comprehensive Income (TCI), inclusive of share of profits from associates and JV entities, reached N1.89 trillion in 2024, reflecting a 59 per cent increase from N1.18 trillion in 2023.
Core TCI (excluding foreign exchange and derivative valuation gains) rose by 148 per cent to N407.9 billion in 2024 compared to N164.7 billion in 2023, supported by robust returns on financial assets measured at fair value through profit and loss, including collateralised securities, private equity, hedge funds, and Exchange-Traded Funds (ETFs).
Umar-Sadiq said the authority’s outstanding financial performance in 2024 reflected the “strength of our strategic vision, disciplined execution and unwavering commitment to sustainable socio-economic advancement.”
He said, “By leveraging innovation, strategic partnerships and sound risk management, we have not only delivered strong returns but also created value for our stakeholders
“As we move forward, we remain focused on driving economic transformation, expanding opportunities, scaling transformative impact and ensuring long-term prosperity for current and future generations of Nigerians.”
The CEO reaffirmed the authority’s commitment to managing the country’s SWF, and delivering the mandates enshrined in the NSIA Act.
He said NSIA remained poised to continually create long-term value for its stakeholders by delivering excellent risk-adjusted financial results, developing a healthy and well-diversified portfolio of assets and large-scale infrastructure projects, and enhancing the desired social outcomes.
He noted that NSIA was committed to its mandate of prudent management and investment of Nigeria’s sovereign wealth.
“In adherence to its Establishment Act, NSIA prioritises transparency, disclosure, and effective communication with all stakeholders and counterparties,” he said.
He pointed out that in the year under review, a new board, led by Olusegun Ogunsanya as Chairman, was appointed by President Bola Tinubu, in accordance with the provisions of the NSIA Act.
The new board will provide strategic direction and oversight, in addition to playing a pivotal role in critical decision making.
He remarked that under the guidance of the Board, the Authority will retain focus on its primary mandate of creating shared value for all stakeholders based on its continued adoption of corporate governance practices.
“NSIA prides itself an investment institution of the federation established to manage funds in excess of budgeted oil revenues and its mission is to play a pivotal role in driving sustained economic development for the benefit of all Nigerians through building a savings base for the Nigerian people, enhancing the development of the county’s infrastructure, and providing stabilisation support in times of economic misadventure,” he added.
Business Analysis
A Peep Into Dangote’s Refinery, The World’s Engineering Wonder

By Cletus Akwaya
Call it Dangote Republic and you would not be wrong, for that is what it means in real sense.
The ultra-modern Dangote Refinery and Petrochemical complex located at the Lekki Free Trade Zone in Lagos is the World’s Engineering wonder.
A guided tour for top Media executives in the country by the President, Dangote Industries Group himself, Alhaji Aliko Dangote on July 14, provided a rare privilege and opportunity to appreciate the project that has emerged as the World’s largest single train petroleum refinery.
Dangote, the Kano-born business mogul and Africa’s richest man, whose vision for the industrial transformation of Nigeria led to the initiation of this project is certainly a fulfilled person, having accomplished such a gargantuan task in the spelt of just about 10 years.
The refinery, which is built and equipped with the latest technology in the industry. It is a behemoth sitting on a huge land space of 2, 735 hectares, approximately seven times, the size of Victoria Island, the octane section of Lagos, which has become the abode for the very rich in the nation’s commercial nerve – centre over the decades.
The land was provided by the Lagos state government after the payment of $100million dollars by the Dangote Group as cost of the land.
The edifice didn’t come easy as the engineers had to reclaim 65million cubic metres of sand through dredging of the Atlantic coastline to pave way for the construction of the refinery and its accompanying facilities especially the Jetty.
The Dangote refinery is not a stand-alone project as it has a coterie of associated industries and infrastructure making it a self-reliant complex.
For instance, the company has a fully developed port (jetty)for maritime operations for both in-take of crude and discharge of refined products. This perfectly compliments the huge pipeline network that lands into the Atlantic for intake of crude and loading of refined products to ships. Its Jetty, which stretches 9KM into the international waters in the Atlantic Ocean and 12.5 KM from the refinery is perhaps one of the most modern in the world built with sand piles that shield the final landing points from the violent oceanic waves, thus providing for safety and stability of ships, barges and oil tankers.
The complex is accessed by 200KM network of concrete under-lay and well asphalted road network to ease vehicular traffic. The refinery has its dedicated steam and power generation system with standby units to adequately support operations of the various plants in the complex.
It has successfully completed a 435 MW power generating plant for its operations. The power generated from this plant surpasses the entire distribution capacity of Ibadan Electricity Distribution company, which supplies electricity to five states of the Federation including Oyo, Osun, Ondo, Ekiti and Kwara.
The Dangote refinery with a capacity of 650,000 bpd of crude oil is designed to handle the crude from many of the African countries, the Middle East and the US light crude. Its petrochemical plant is designed to produce 77 different high-performance grades of polypropylene, which is the major raw material for numerous industries and other refineries. With a huge refining capacity, Alhaji Dangote said the products from the refinery company would easily meet 100 per cent the needs of Nigeria’s demand for gasoline, diesel, Petrol and Aviation Jet with 56 per cent surplus for export, from which the company projects to earn a princely $25billion per annum from 2025.
The company has facility to load 2,900 trucks with its various products in a day by land and millions of litres of products through the waters depending on where the orders come from. The $25million projected revenue in 2025 could translate to a huge relieve for the nation in dire need of foreign earnings to shore-up the value of the nation’s currency.
The associated industry, the Dangote Fertilizers Limited also situated in the complex utilises the raw materials from petrochemicals to produce different varieties of fertilzers especially Urea, NPK and Amonia grades of fertilizers. Apart from the local market, Dangote is already exporting its fertilizers to other countries including Mexico, a testament to its high quality that meets world standards.
This feta, the President of Dangote industries explained was possible because of the high quality, the company has opted to pursue. In between the refinery and the fertilizers complex lies a 50,000 housing estate, which provided accommodation for the construction workers at the time of construction especially during the COVID-19 lockdowns of 2020, when workers remained encamped on the project site to continue with the work.
What stands out the Dangote Refinery is perhaps not in its sheer size and capacity but in the fact that it is perhaps the only of such projects whose Engineering, Procurement and construction(EPC) was done directly by the company without engaging the world renowned refinery constriction companies like Technip Bechtel (USA)Technip (France)Aker Solutions (Norway)Chiyoda Corporation (Japan)SNC-Lavalin Group (Canada)J. Ray McDermott (USA)JGC Corporation (Japan)Hyundai Heavy Industries (South Korea)Foster Wheeler (USA) and Daelim Industrial Company (South Korea)
“The design of the refinery was handled by dozens of Engineers and technical experts assembled in India and Houston, Texas, USA to execute engineering designs of the refinery,” said Edwin Kumar, the Executive vice President, Oil and Gas for the Dangote Group who midwifed the birth of the refinery complex.
“We didn’t give out contracts to anybody, we bought every single bolt and equipment ourselves and had it shipped into the country,” Dangote explained to his guests.
Part of the equipment imported into the country was the procurement of over 3,000 cranes to handle the evacuation of huge consignments of machinery from the wharf and for subsequent installation at the construction site. The cranes have become an unusual assemblage of such equipment to be found in one place on the African continent.
If there was any doubt that Alhaji Aliko Dangote is Africa’s richest man, the successful completion of the refinery and petrochemical complex at the cost of about $20billion has further confirmed his status as Africa’s leading businessman and entrepreneur.
However, Dangote does not really accept that he is the richest man on the continent,
“When you are rich, you accumulate cash, but when you wealthy, you create wealth” he told the top Media executives on tour of the huge project, explaining that he would rather prefer to be referred to as a “Wealthy man.”
And consistent with his business philosophy, Dangote hinted of plans to list the refinery on the Nation’s stock exchange by the first quarter of 2025. His vision is to avail the public of 20 per cent of the shares so as to ensure participation by Nigerians and even international portfolio investors.
The refinery company and the entire of Dangote Group at the moment provides direct employment to about 20,000 Nigerians and much indirect jobs to Nigerians, making it the highest employer of labour outside the government.
Most interestingly, the highly technical operations of Dangote refinery is operated by over 70 per cent of local manpower who work in the refinery control, centre, the numerous production and quality control laboratories among others. Some of the staff who explained their tasks to the visiting media executives said they were graduates of Engineering and allied disciplines recruited mostly from Nigerian universities and trained in various institutions abroad for periods ranging from sixth months – one year to master refinery operations. Through this strategy, Dangote has ensured transfer of technology to thousands of Nigerian youths.
“We don’t know where they come from as long as they are Nigerians and if they decide to leave and join international oil companies for better job opportunities, we have no problem with that,” Dangote responded to a question on the strategy to retain the technical manpower for stability of the refinery’s operations.
The Dangote Refinery is a Republic of some kind, at least an economic or industrial Republic.
But the man who presides over this ‘industrial empire’, Alhaji Dangote says his only ambition is to boot the nation’s economy and ensure netter life for Nigerians.
“When you import any product into Nigeria, you are importing poverty and exporting our jobs to those countries from where you are importing” Dangote said adding “this is why I want economic nationalism in Nigeria.”
Dangote’s vision even goes beyond Nigeria as he has cement factories and other business concerns in about 13 African countries including Ghana, Ethiopia, Tanzania, Uganda, etc. This signifies his continent-wide dream to transform Africa’s economies.
There has been attempts by some international oil companies to frustrate the successful take-off of the refinery, through over pricing and in some instances outright denial of crude supplies for processing. This made Dangote to commence importation of crude from the US. However, the cheering news that the Nigerian National Petroleum Company Limited (NNPC) has finally approved a supply arrangement has raised hopes that full operations will commence and that the long-awaited Dangote oil products will reach consumers around the country from August.
At last, the Dangote Group may have achieved its objective to serve as the elixir to Nigeria’s industrialisation effort. This is perhaps the greatest legacy of Africa’s richest man to his country of birth.