China’s zero-tariff policy on goods from 53 African countries took effect on May 1, with Nigeria expected to benefit. Questions remain over its readiness to take advantage of the move, amid concerns over infrastructure, export capacity and technology transfer.
Monday, May 11, 2026
Experts question Nigeria’s readiness for China’s zero-tariff policy
China’s zero-tariff policy on goods from 53 African countries took effect on May 1, with Nigeria expected to benefit. Questions remain over its readiness to take advantage of the move, amid concerns over infrastructure, export capacity and technology transfer.
Customs returns stolen luxury vehicles exported to Nigeria to Canada
As part of the ongoing efforts to strengthen international confidence in Nigeria’s anti-smuggling and cargo intelligence system, the Nigeria Customs Service (NCS) has formally handed over intercepted stolen luxury vehicles traced to Canada to the Deputy High Commissioner of Canada to Nigeria, Nasser Salihou.
The vehicles included a 2019 Lexus RX350, 2019 Mercedes-Benz G550, 2023 Land Rover Range Rover, 2019 Lamborghini Huracán, 2021 Rolls-Royce Dawn Convertible.
The others are 2018 Lamborghini Aventador and 2026 Toyota Tundra.
They are all all confirmed to have been stolen and illegally exported before ending up in Nigeria,” NCS spokesperson, Abdullahi Maiwada said in a statement on Sunday.
Maiwada said the vehicles were handed over at the Tin Can Island Port by Frank Onyeka, the Customs Area Controller of the Command.
According to him, the recovery followed months of intelligence sharing and operational collaboration between the NCS and the Royal Canadian Mounted Police.
The spokesperson added that authorities in Canada had traced a number of stolen high-end vehicles believed to have been smuggled into Nigeria through international shipping channels.
“Internal Customs document dated May 5, showed that the intercepted vehicles included a 2019 Lexus RX350, 2019 Mercedes-Benz G550, 2023 Land Rover Range Rover, 2019 Lamborghini Huracán, 2021 Rolls-Royce Dawn Convertible.
“Also, a 2018 Lamborghini Aventador and 2026 Toyota Tundra, all confirmed to have been stolen and illegally exported before ending up in Nigeria,” he said.
Speaking at the handing over, Onyeka said one of the vehicles, a Toyota Tacoma, was initially concealed inside a container carrying other vehicles and had not yet exited Customs control before intelligence from Canadian authorities triggered immediate intervention.
He said once the alert was received and shipping documentation transmitted through official channels, officers of the command moved swiftly to isolate the suspicious consignment.
He said the officers extracted the affected vehicle and placed it under enforcement custody pending diplomatic verification.
“What looked like a routine cargo movement quickly became an international criminal investigation.
“Once intelligence reached us, we placed the consignment under enforcement watch and secured the vehicle pending confirmation from Canadian authorities,” he said.
He explained that the service deliberately delayed the final release until officials of the Canadian government arrived in person to complete identification and recovery procedures.
“We had people who wanted to step in on behalf of others, but this was too sensitive. We insisted the handover must be directly to the Canadian government to preserve the integrity of the process,” he said.
The operation, he said, reinforces the NCS’ commitment to tackling transnational vehicle theft syndicates that exploit global shipping routes to move stolen automobiles across continents.
According to him, the recovery has revealed the ongoing cooperation between Nigeria and Canada in intelligence sharing, cargo profiling, and maritime enforcement.
He said this was particularly in tackling organised cross-border crimes involving stolen assets, illicit trade, and other fraudulent activities.
The vehicles included a 2019 Lexus RX350, 2019 Mercedes-Benz G550, 2023 Land Rover Range Rover, 2019 Lamborghini Huracán, 2021 Rolls-Royce Dawn Convertible.
The others are 2018 Lamborghini Aventador and 2026 Toyota Tundra.
They are all all confirmed to have been stolen and illegally exported before ending up in Nigeria,” NCS spokesperson, Abdullahi Maiwada said in a statement on Sunday.
Maiwada said the vehicles were handed over at the Tin Can Island Port by Frank Onyeka, the Customs Area Controller of the Command.
According to him, the recovery followed months of intelligence sharing and operational collaboration between the NCS and the Royal Canadian Mounted Police.
The spokesperson added that authorities in Canada had traced a number of stolen high-end vehicles believed to have been smuggled into Nigeria through international shipping channels.
“Internal Customs document dated May 5, showed that the intercepted vehicles included a 2019 Lexus RX350, 2019 Mercedes-Benz G550, 2023 Land Rover Range Rover, 2019 Lamborghini Huracán, 2021 Rolls-Royce Dawn Convertible.
“Also, a 2018 Lamborghini Aventador and 2026 Toyota Tundra, all confirmed to have been stolen and illegally exported before ending up in Nigeria,” he said.
Speaking at the handing over, Onyeka said one of the vehicles, a Toyota Tacoma, was initially concealed inside a container carrying other vehicles and had not yet exited Customs control before intelligence from Canadian authorities triggered immediate intervention.
He said once the alert was received and shipping documentation transmitted through official channels, officers of the command moved swiftly to isolate the suspicious consignment.
He said the officers extracted the affected vehicle and placed it under enforcement custody pending diplomatic verification.
“What looked like a routine cargo movement quickly became an international criminal investigation.
“Once intelligence reached us, we placed the consignment under enforcement watch and secured the vehicle pending confirmation from Canadian authorities,” he said.
He explained that the service deliberately delayed the final release until officials of the Canadian government arrived in person to complete identification and recovery procedures.
“We had people who wanted to step in on behalf of others, but this was too sensitive. We insisted the handover must be directly to the Canadian government to preserve the integrity of the process,” he said.
The operation, he said, reinforces the NCS’ commitment to tackling transnational vehicle theft syndicates that exploit global shipping routes to move stolen automobiles across continents.
According to him, the recovery has revealed the ongoing cooperation between Nigeria and Canada in intelligence sharing, cargo profiling, and maritime enforcement.
He said this was particularly in tackling organised cross-border crimes involving stolen assets, illicit trade, and other fraudulent activities.
How Nigerians are coping with heat waves amid crippling power outages
Nigerians are currently facing severe heat stress. People across the West African country are complaining about the unusually hot weather. The extreme heat has caused widespread distress, with many social media users reporting that it is affecting their health and reducing their productivity.
According to the Nigerian Meteorological Agency (NiMet), the heat stress is occurring because March falls in Nigeria’s peak transitional heat window — after the Harmattan dry season ends but before the rainy season begins. The heat is affecting people in many parts of the country, but it is more pronounced in some areas. The most affected areas are in the north-central, north-west, and north-east regions, as well as inland areas of the southern states.
By Abdulrosheed Fadipe, Global Voices
According to the Nigerian Meteorological Agency (NiMet), the heat stress is occurring because March falls in Nigeria’s peak transitional heat window — after the Harmattan dry season ends but before the rainy season begins. The heat is affecting people in many parts of the country, but it is more pronounced in some areas. The most affected areas are in the north-central, north-west, and north-east regions, as well as inland areas of the southern states.
Impact of the heat stress on Nigerians
Global Voices spoke to some Nigerians to understand the impact of the heat stress on their communities and how it is affecting their work and everyday life.
Onyekachi Ogbu is an Igbo-language consultant and AI data specialist. He lives in Enugu, Nigeria. He explains how the heat stress is affecting his productivity and everyday life:
"It makes it difficult to work, especially for a person like me who works from home. We don't use the regular power supply in my house. We rely on solar power and a power generator for power, but the solar power does not last for 24 hours. So, we majorly use it when the sun is shining from peak from 9 am to 12 pm or 1 pm. We use it mostly at night, and we can not use it to power fans because it is incapable of powering fans. So, we mostly rely on natural air entering the house from the windows. It's only when we are on the power generating set that we can use the ceiling fans. Because of the heat, it is hard to work indoors. Sometimes, I would have to work on my laptop outside to get fresh air as I work.
The heat is also causing distraction. Imagine having a virtual meeting, and you have to be fully clothed, and you are sweating heavily as the meeting is ongoing. It will cause distraction because you won’t be comfortable because you can’t take off your clothes while having virtual meetings.
What I rely on to work easily these days is to use hand fans or step outside of the house. On some occasions, I buy fuel for the generator, but I cannot afford to do this every time because fuel price is high.
I believe everyone is feeling the heat stress, but many people in rural areas have limited awareness about it. That's why we need to create awareness for them to take safety precautions such as staying hydrated and being well-aerated."
Adewale Afolabi, a commercial rider in Osogbo, Osun State, Nigeria, said the heat is unbearable:
"The heat is too much and it is affecting my work, but I must continue working in order to take care of myself and my family."
Muh’d Tasi’u Jibril, a linguist living in Bauchi, narrates how the heat is affecting people living in the Northern part of the country:
"The heat has been unbearable for the last two weeks. As for a remote worker like me, I cannot work around 11pm to 3pm due to the unbearable heat. The heat was too much during the last ten days of Ramadan. It was so hot that people suffering from ulcer had to break their fast.
Normally, over here we used to experience the harmattan season during the months December, January and February. But this year there is nothing like that.
The heat did not affect my daily work since I work remotely. It is just the epileptic power supply that is making me feel the heat because you won't be able to use ACs and fans. I hardly sleep at night. I only sleep when I am able to find an alternative source of power to power fans and ACs. Also, it is difficult to get cold water to drink in this period because there is no electricity. What we used to do to cope with the heat stress at night is sleep outdoors, but we can no longer do that due to insecurity. It's only those who can afford solar panels that can power fans or AC that are not affected by the heat stress."
Nigeria’s power crisis worsens the situation
The worsening state of power supply in the country has made the situation worse. The National power grid has collapsed many times in 2026. This has led to nationwide blackouts, which have made it difficult for many citizens to cope with the heat stress. Due to the power cut, many Nigerians cannot use electrical appliances such as fans and ACs that could provide comfort. On March 24, the Minister of Power, Adebayo Adelabu, apologized to Nigerians for the frequent power outages.
Adesewa Popoola, an entrepreneur in Lagos, narrated how the heat stress is affecting Lagosians and how the crippling power supply has worsened the situation:
"I live in a neighbourhood where there is not much space between houses, and because there is no adequate ventilation in the houses in the area. I have noticed a significant change in the temperature pattern over the years. December is supposed to be the Harmattan season, when it might be hot during the day and cold during the evenings. But there was no Harmattan in Lagos throughout December and January. The temperature is always hot throughout the day. The heat has affected my work and daily life. There are times I need to go out and do some things. Once the time is past 10a.m. I won’t be able to go out, because of the extreme heat. I only go out when I am able to get a ride to my destinations. On many occasions, I have to wait till evenings when the heat has reduced before going out If I am unable to get a ride.
If I have an appointment, I have to be mentally prepared for coping with the heat. It is also affecting the way I dress. I am unable to wear some of my clothes because of the heat.
In order to cope with the heat, I stay indoors most times, bath as many times as I can, and drink water regularly.
About awareness, I think most people are not aware of the risks of the heat.
We all know the current situation of electricity in Nigeria. Due to epileptic nature of the power supply, it is difficult to cope with the heat, especially during nighttime when the heat is intense. Since there is no power, many people cannot turn on their fans. To make the matter worse, a lot of people cannot afford to buy fuel because of the hike in the price of fuel. It would have been easier to cope with the heat stress if the power supply is stable."
Global Voices spoke to some Nigerians to understand the impact of the heat stress on their communities and how it is affecting their work and everyday life.
Onyekachi Ogbu is an Igbo-language consultant and AI data specialist. He lives in Enugu, Nigeria. He explains how the heat stress is affecting his productivity and everyday life:
"It makes it difficult to work, especially for a person like me who works from home. We don't use the regular power supply in my house. We rely on solar power and a power generator for power, but the solar power does not last for 24 hours. So, we majorly use it when the sun is shining from peak from 9 am to 12 pm or 1 pm. We use it mostly at night, and we can not use it to power fans because it is incapable of powering fans. So, we mostly rely on natural air entering the house from the windows. It's only when we are on the power generating set that we can use the ceiling fans. Because of the heat, it is hard to work indoors. Sometimes, I would have to work on my laptop outside to get fresh air as I work.
The heat is also causing distraction. Imagine having a virtual meeting, and you have to be fully clothed, and you are sweating heavily as the meeting is ongoing. It will cause distraction because you won’t be comfortable because you can’t take off your clothes while having virtual meetings.
What I rely on to work easily these days is to use hand fans or step outside of the house. On some occasions, I buy fuel for the generator, but I cannot afford to do this every time because fuel price is high.
I believe everyone is feeling the heat stress, but many people in rural areas have limited awareness about it. That's why we need to create awareness for them to take safety precautions such as staying hydrated and being well-aerated."
Adewale Afolabi, a commercial rider in Osogbo, Osun State, Nigeria, said the heat is unbearable:
"The heat is too much and it is affecting my work, but I must continue working in order to take care of myself and my family."
Muh’d Tasi’u Jibril, a linguist living in Bauchi, narrates how the heat is affecting people living in the Northern part of the country:
"The heat has been unbearable for the last two weeks. As for a remote worker like me, I cannot work around 11pm to 3pm due to the unbearable heat. The heat was too much during the last ten days of Ramadan. It was so hot that people suffering from ulcer had to break their fast.
Normally, over here we used to experience the harmattan season during the months December, January and February. But this year there is nothing like that.
The heat did not affect my daily work since I work remotely. It is just the epileptic power supply that is making me feel the heat because you won't be able to use ACs and fans. I hardly sleep at night. I only sleep when I am able to find an alternative source of power to power fans and ACs. Also, it is difficult to get cold water to drink in this period because there is no electricity. What we used to do to cope with the heat stress at night is sleep outdoors, but we can no longer do that due to insecurity. It's only those who can afford solar panels that can power fans or AC that are not affected by the heat stress."
Nigeria’s power crisis worsens the situation
The worsening state of power supply in the country has made the situation worse. The National power grid has collapsed many times in 2026. This has led to nationwide blackouts, which have made it difficult for many citizens to cope with the heat stress. Due to the power cut, many Nigerians cannot use electrical appliances such as fans and ACs that could provide comfort. On March 24, the Minister of Power, Adebayo Adelabu, apologized to Nigerians for the frequent power outages.
Adesewa Popoola, an entrepreneur in Lagos, narrated how the heat stress is affecting Lagosians and how the crippling power supply has worsened the situation:
"I live in a neighbourhood where there is not much space between houses, and because there is no adequate ventilation in the houses in the area. I have noticed a significant change in the temperature pattern over the years. December is supposed to be the Harmattan season, when it might be hot during the day and cold during the evenings. But there was no Harmattan in Lagos throughout December and January. The temperature is always hot throughout the day. The heat has affected my work and daily life. There are times I need to go out and do some things. Once the time is past 10a.m. I won’t be able to go out, because of the extreme heat. I only go out when I am able to get a ride to my destinations. On many occasions, I have to wait till evenings when the heat has reduced before going out If I am unable to get a ride.
If I have an appointment, I have to be mentally prepared for coping with the heat. It is also affecting the way I dress. I am unable to wear some of my clothes because of the heat.
In order to cope with the heat, I stay indoors most times, bath as many times as I can, and drink water regularly.
About awareness, I think most people are not aware of the risks of the heat.
We all know the current situation of electricity in Nigeria. Due to epileptic nature of the power supply, it is difficult to cope with the heat, especially during nighttime when the heat is intense. Since there is no power, many people cannot turn on their fans. To make the matter worse, a lot of people cannot afford to buy fuel because of the hike in the price of fuel. It would have been easier to cope with the heat stress if the power supply is stable."
Cause of the heat wave and recommendations
Researchers have attributed the cause of the heat stress to climate change.
Earlier in March, the Nigerian Meteorological Agency (NIMET) issued a nationwide alert, warning the general public about the health risks the heat stress may pose in some parts of the country. The agency also warned the public to take necessary precautions to reduce their exposure to the heat. In the X post, NIMET encouraged Nigerians to drink plenty of water to stay hydrated, stay in well-ventilated or air-conditioned rooms, wear light, breathable clothing, and wear hats, sunshades, and sunscreens. It advised parents to keep infants cool and hydrated, and never leave children in a closed, parked vehicle.
People are hoping the rainy season starts soon to ease heat stress.
Researchers have attributed the cause of the heat stress to climate change.
Earlier in March, the Nigerian Meteorological Agency (NIMET) issued a nationwide alert, warning the general public about the health risks the heat stress may pose in some parts of the country. The agency also warned the public to take necessary precautions to reduce their exposure to the heat. In the X post, NIMET encouraged Nigerians to drink plenty of water to stay hydrated, stay in well-ventilated or air-conditioned rooms, wear light, breathable clothing, and wear hats, sunshades, and sunscreens. It advised parents to keep infants cool and hydrated, and never leave children in a closed, parked vehicle.
People are hoping the rainy season starts soon to ease heat stress.
Friday, May 8, 2026
Billionaire drug baron arrested as NDLEA dismantles global laundering network
Operatives of a Special Operations Unit of the National Drug Law Enforcement Agency (NDLEA), in close coordination with the United States Drug Enforcement Administration (DEA) Lagos Country Office and law enforcement partners from Switzerland, France and Greece, have successfully dismantled a transnational criminal organisation involved in drug money laundering operations worth hundreds of billions of naira across Europe and Nigeria.
The multi-country investigation into the drug money laundering operations culminated in the simultaneous arrest of a billionaire drug baron, Amadi Simon, in Switzerland, and his co-conspirators: 34-year-old Jecinta Amara Ikechi in Anambra State, and 28-year-old Blessing Ngozi Amadi in Agbor, Delta State, on Tuesday, April 28, 2026.
The arrests followed months of intelligence gathering and investigations across multiple jurisdictions linking Amadi to the laundering of hundreds of billions of naira in proceeds from drug trafficking and other financial crimes.
In addition to the arrest of the suspects, the NDLEA, in collaboration with its international law enforcement partners, also traced multi-billion naira assets linked to Amadi’s transnational criminal network in Nigeria and abroad.
His operations in Nigeria involved a complex scheme of front and shell companies, pass-through accounts and proxies, as well as the use of numerous traditional and cryptocurrency accounts to conceal and launder illicit funds.
Properties identified and linked to Amadi Simon as proceeds of illicit drug trafficking include Jovi Hotel, located at 1 Isiayei Street, GRA Phase 1, Asaba, Delta State; Jovi Hotel and Suites, located at 4 Orikeze by Deeper Life Road, Agbor, Delta State; and Jovi Apartment at Jamieson Court, Mabushi, Abuja. Several bank accounts and cryptocurrency addresses allegedly used by the cartel to conceal hundreds of billions of naira in illicit funds have also been identified and blocked.
Speaking on the coordinated efforts of the NDLEA, the United States DEA and other international partners, Chairman/Chief Executive Officer of the agency, Mohammed Buba Marwa, said the success of the multi-country and multi-year operation sends a clear message that the NDLEA maintains a zero-tolerance policy towards crimes that jeopardise the safety of Nigerians, the integrity of the country’s reputation and the stability of the economy.
He expressed gratitude for the support received from the US DEA in dismantling Amadi’s transnational criminal network, adding that the U.S. Mission to Nigeria has continued to partner with the agency in combating narcotics trafficking through training in intelligence, evidence collection, case management and tactical operations, as well as the provision of critical equipment. He assured that the NDLEA would continue to expand its cooperation with the United States and other international partners.
“The NDLEA remains relentless in its pursuit of those involved in narcotics trafficking and associated financial crimes, regardless of where they attempt to hide. Built on a foundation of strategic partnership, unwavering integrity and dedicated professionalism, the NDLEA is committed to ensuring that Nigeria is neither a haven for drug traffickers who profit from illicit substances nor a sanctuary for their criminal proceeds,” Marwa said.
By Bertram Nwannekanma, The Guardian
The multi-country investigation into the drug money laundering operations culminated in the simultaneous arrest of a billionaire drug baron, Amadi Simon, in Switzerland, and his co-conspirators: 34-year-old Jecinta Amara Ikechi in Anambra State, and 28-year-old Blessing Ngozi Amadi in Agbor, Delta State, on Tuesday, April 28, 2026.
The arrests followed months of intelligence gathering and investigations across multiple jurisdictions linking Amadi to the laundering of hundreds of billions of naira in proceeds from drug trafficking and other financial crimes.
In addition to the arrest of the suspects, the NDLEA, in collaboration with its international law enforcement partners, also traced multi-billion naira assets linked to Amadi’s transnational criminal network in Nigeria and abroad.
His operations in Nigeria involved a complex scheme of front and shell companies, pass-through accounts and proxies, as well as the use of numerous traditional and cryptocurrency accounts to conceal and launder illicit funds.
Properties identified and linked to Amadi Simon as proceeds of illicit drug trafficking include Jovi Hotel, located at 1 Isiayei Street, GRA Phase 1, Asaba, Delta State; Jovi Hotel and Suites, located at 4 Orikeze by Deeper Life Road, Agbor, Delta State; and Jovi Apartment at Jamieson Court, Mabushi, Abuja. Several bank accounts and cryptocurrency addresses allegedly used by the cartel to conceal hundreds of billions of naira in illicit funds have also been identified and blocked.
Speaking on the coordinated efforts of the NDLEA, the United States DEA and other international partners, Chairman/Chief Executive Officer of the agency, Mohammed Buba Marwa, said the success of the multi-country and multi-year operation sends a clear message that the NDLEA maintains a zero-tolerance policy towards crimes that jeopardise the safety of Nigerians, the integrity of the country’s reputation and the stability of the economy.
He expressed gratitude for the support received from the US DEA in dismantling Amadi’s transnational criminal network, adding that the U.S. Mission to Nigeria has continued to partner with the agency in combating narcotics trafficking through training in intelligence, evidence collection, case management and tactical operations, as well as the provision of critical equipment. He assured that the NDLEA would continue to expand its cooperation with the United States and other international partners.
“The NDLEA remains relentless in its pursuit of those involved in narcotics trafficking and associated financial crimes, regardless of where they attempt to hide. Built on a foundation of strategic partnership, unwavering integrity and dedicated professionalism, the NDLEA is committed to ensuring that Nigeria is neither a haven for drug traffickers who profit from illicit substances nor a sanctuary for their criminal proceeds,” Marwa said.
Oil's Price Surge Spurs Nigeria's Flip From Discount to Darling
Nigerian assets are rallying across stocks, bonds and the currency as investor confidence builds in President Bola Tinubu’s economic agenda.
Article content
The nation’s stock benchmark has climbed 63% this year in dollar terms, the best performance after South Korea’s Kospi out of 92 global indexes tracked by Bloomberg. That took its advance over the past 12 months to more than 200%. Local-currency government bonds have outpaced most emerging-market peers, while the naira is one of the top-performing African currencies.
Tinubu’s reset of the Nigerian economy included scrapping the costly fuel subsidies and multiple exchange-rates that had left the currency overvalued and deterred investors. Economic growth will accelerate to 4.1% this year, compared with 3.3% when Tinubu came into office three years ago, according to the International Monetary Fund. It also earned the country a credit-rating upgrade from Moody’s Ratings and Fitch Global Ratings in 2025.
With more credible economic policies in place, investors are returning to Nigeria’s capital markets. The rise in oil prices since the start of the Iran war has provided a budget windfall as the country relies on crude exports for about one third of government revenue.
Article content
Foreigners bought 181.8 billion naira ($133 million) of Nigerian equities in March, up from 72.3 billion naira the previous month, according to the latest exchange data, even as the Middle East conflict sparked a global stock selloff.
Article content
“Nigeria is transitioning from a credibility discount to an execution story,” said Romain Bordenave, an emerging-markets portfolio manager at Edmond de Rothschild Suisse SA. “The Iran conflict is definitely pushing Nigeria as an Africa darling.”
With a $105 billion market capitalization, Nigeria’s market is now bigger than New Zealand’s, and in the same league as Portugal, Ireland and Morocco, according to data compiled by Bloomberg.
Article content
Among the best-performing shares this year are companies that benefit from economic growth: Bua Cement Plc is up 140%, Zenith Bank Plc has climbed 104% and MTN Nigeria Communications Plc, a mobile-phone provider, has gained 57%. Oil and gas exploration company Seplat Energy Plc has almost doubled, while rival Aradel Holdings Plc has soared 172%.
Article content
The nation’s stock market received a boost when FTSE Russell recently announced the reclassification of Nigeria to frontier-market status with effect from September. Inclusion in the gauge would attract demand from index-tracker funds.
Meanwhile, the country’s stock market is also getting a vote of confidence from Africa’s richest man, Aliko Dangote, who plans to sell about 10% of his oil-refinery company in Nigeria, with additional listings on other African exchanges. The refinery has an estimated market valuation of between $25 billion and $45 billion.
“The FTSE reclassification is very positive for the Nigerian market,” said Samuel Sule, the chief executive of Renaissance Capital Africa. “Many global institutional investors track the index and as such, inclusion will attract increased market volume and activity. The Dangote refinery IPO is expected to deepen the market further.”
Still, Nigeria’s economy isn’t entirely protected from the risks of the Iran war. Despite Nigeria being the continent’s biggest oil producer, local fuel costs have climbed as international prices rose. The agricultural sector will take a hit from higher fertilizer prices, pushing up food costs and threatening a slowdown in inflation that took the consumer-price index to a five-year low in February.
“Even temporary volatility in oil markets could slow or reverse recent disinflationary trends,” Manji Cheto, a senior vice president at Teneo Holdings, wrote in a report last month. “This creates an asymmetric risk profile: higher oil prices raise domestic inflation quickly, while fiscal benefits accrue more gradually and remain partially constrained.”
For now, however, the outlook for the economy supports further gains, according to Michel Aubenas, head of emerging-market debt at BlackRock Inc. Local-currency bonds have returned 14% in dollar terms year-to-date, outperforming all major emerging markets except Argentina and Brazil, while the naira currency has strengthened almost 6%. Nigeria’s dollar bonds have returned 5%, compared with an average of 1.3% for emerging markets, according to Bloomberg indexes.
“We like the dollar-denominated debt and find the valuations very attractive, as well as the currency, provided they continue to be supported by ongoing reforms,” Aubenas said.
By Ray Ndlovu and Emele Onu, Bloomberg
Article content
The nation’s stock benchmark has climbed 63% this year in dollar terms, the best performance after South Korea’s Kospi out of 92 global indexes tracked by Bloomberg. That took its advance over the past 12 months to more than 200%. Local-currency government bonds have outpaced most emerging-market peers, while the naira is one of the top-performing African currencies.
Tinubu’s reset of the Nigerian economy included scrapping the costly fuel subsidies and multiple exchange-rates that had left the currency overvalued and deterred investors. Economic growth will accelerate to 4.1% this year, compared with 3.3% when Tinubu came into office three years ago, according to the International Monetary Fund. It also earned the country a credit-rating upgrade from Moody’s Ratings and Fitch Global Ratings in 2025.
With more credible economic policies in place, investors are returning to Nigeria’s capital markets. The rise in oil prices since the start of the Iran war has provided a budget windfall as the country relies on crude exports for about one third of government revenue.
Article content
Foreigners bought 181.8 billion naira ($133 million) of Nigerian equities in March, up from 72.3 billion naira the previous month, according to the latest exchange data, even as the Middle East conflict sparked a global stock selloff.
Article content
“Nigeria is transitioning from a credibility discount to an execution story,” said Romain Bordenave, an emerging-markets portfolio manager at Edmond de Rothschild Suisse SA. “The Iran conflict is definitely pushing Nigeria as an Africa darling.”
With a $105 billion market capitalization, Nigeria’s market is now bigger than New Zealand’s, and in the same league as Portugal, Ireland and Morocco, according to data compiled by Bloomberg.
Article content
Among the best-performing shares this year are companies that benefit from economic growth: Bua Cement Plc is up 140%, Zenith Bank Plc has climbed 104% and MTN Nigeria Communications Plc, a mobile-phone provider, has gained 57%. Oil and gas exploration company Seplat Energy Plc has almost doubled, while rival Aradel Holdings Plc has soared 172%.
Article content
The nation’s stock market received a boost when FTSE Russell recently announced the reclassification of Nigeria to frontier-market status with effect from September. Inclusion in the gauge would attract demand from index-tracker funds.
Meanwhile, the country’s stock market is also getting a vote of confidence from Africa’s richest man, Aliko Dangote, who plans to sell about 10% of his oil-refinery company in Nigeria, with additional listings on other African exchanges. The refinery has an estimated market valuation of between $25 billion and $45 billion.
“The FTSE reclassification is very positive for the Nigerian market,” said Samuel Sule, the chief executive of Renaissance Capital Africa. “Many global institutional investors track the index and as such, inclusion will attract increased market volume and activity. The Dangote refinery IPO is expected to deepen the market further.”
Still, Nigeria’s economy isn’t entirely protected from the risks of the Iran war. Despite Nigeria being the continent’s biggest oil producer, local fuel costs have climbed as international prices rose. The agricultural sector will take a hit from higher fertilizer prices, pushing up food costs and threatening a slowdown in inflation that took the consumer-price index to a five-year low in February.
“Even temporary volatility in oil markets could slow or reverse recent disinflationary trends,” Manji Cheto, a senior vice president at Teneo Holdings, wrote in a report last month. “This creates an asymmetric risk profile: higher oil prices raise domestic inflation quickly, while fiscal benefits accrue more gradually and remain partially constrained.”
For now, however, the outlook for the economy supports further gains, according to Michel Aubenas, head of emerging-market debt at BlackRock Inc. Local-currency bonds have returned 14% in dollar terms year-to-date, outperforming all major emerging markets except Argentina and Brazil, while the naira currency has strengthened almost 6%. Nigeria’s dollar bonds have returned 5%, compared with an average of 1.3% for emerging markets, according to Bloomberg indexes.
“We like the dollar-denominated debt and find the valuations very attractive, as well as the currency, provided they continue to be supported by ongoing reforms,” Aubenas said.
By Ray Ndlovu and Emele Onu, Bloomberg
Subscribe to:
Posts (Atom)