Dangote IPO tests Nigeria's fintech infrastructure as investor demand overwhelms platforms

Several Nigerian digital investment platforms suffered outages as retail investors rushed to buy shares ​in Dangote Petroleum Refinery, highlighting the strain Africa's largest-ever share sale is placing on fintech infrastructure.

Regulators and market participants have urged first-time ‌investors to be cautious as the record $1.6 billion offering, launched this week by Aliko Dangote, seeks broad public participation through banks, mobile operators and fintech platforms.

Neither Dangote nor the underwriters have provided any figures for demand for the shares. However, the disruptions point to strong retail investor interest in the offer and illustrate the growing role fintech firms may play in widening access to Nigeria's ​capital markets.

When the IPO launched on Monday, Temi Popoola, CEO of NGX Group, said demand was so high that some investment apps crashed.

"I think ​this particular IPO is stress testing Nigeria's financial infrastructure across the board. Us fintechs are being tested to take this massive ⁠amount of traffic," Yanmo Omorogbe, co-founder and chief operating officer at one of the largest platforms, Bamboo, told Reuters.

Omorogbe said Bamboo faced outages after traffic on ​Bamboo's app surged to 10 times normal levels within 30 minutes of the IPO going live on Monday. The spike also affected some of Bamboo's third-party service providers, ​compounding the disruption.

"So you have almost a perfect storm, or should we say an imperfect storm, of massive influx of customers, third-party providers, and then multiple retries, creating even more demand on our system," Omorogbe said. "And to be very, very honest, our system broke."

MILLIONS EXPECTED TO BUY SHARES

Users of other platforms that allow digital share subscriptions, including Cowrywise and InvestNaija, also reported difficulties ​accessing services and executing transactions.

Oluwayinka Alaje, who runs a small printing shop in Abuja, said his attempt to buy Dangote shares on Bamboo had failed and he was ​only able to use another app late at night.

InvestNaija directed users to its WhatsApp channel after its platform was overwhelmed.
Bamboo and InvestNaija said their platforms were operating normally by Wednesday. ‌Cowrywise did ⁠not respond to requests for comment.

Some stockbrokers, including Chapel Hill Denham, are also using WhatsApp to reach potential investors. Chapel Hill Denham did not respond to a request for comment.

Betting that digital distribution channels will help attract millions of investors, including Nigerians who have never owned shares and those with limited access to traditional banking services, Dangote told local television he expects 10 million people to buy shares in the refinery.

Dangote has marketed it as a "people's IPO" - an opportunity to share the benefits of ​his business's growth, with the minimum investment ​set at just 10 shares or ⁠around $4 - a lower threshold than in previous IPOs.

The refinery, which cost more than $20 billion to build, has emerged as a key supplier of fuel to Europe following disruptions to Middle East exports. It increased fuel exports this year during the crisis, delivering ​a net profit of $1.82 billion in the first half of 2026 on revenue of more than $13 billion, according to ​its prospectus.

"ALL SORTS OF ⁠SCAMS"

The rush to buy into one of Africa's most significant industrial projects could create opportunities for fraudsters to target investors through phishing attempts, fake investment websites and impersonation scams designed to exploit the inexperienced.

"Somebody can create all sorts of scams. By the time people know about it, the guys have left town," said Bismarck Rewane, chief executive of Lagos-based ⁠Financial Derivatives ​Company.

The Securities and Exchange Commission has called on investors to be wary before they transfer funds ​or provide any personal information. The SEC has not reported any cases of fraud.

Analysts say the risks may be especially acute for first-time investors using mobile applications, where the speed and simplicity of digital transactions ​can make it harder to distinguish legitimate offers from fraudulent ones.

By Macdonald Dzirutwe, Reuters

Related story: Video - Dangote Refinery launches Nigeria's largest-ever IPO

Video - Dangote Refinery launches Nigeria's largest-ever IPO

Aliko Dangote launched an initial public offering for his refinery, seeking to raise $1.6 billion in what is being billed as Africa's largest share sale. If the offer is oversubscribed, a green-shoe option could increase the fundraising target to $2.1 billion, with ordinary Nigerians able to subscribe from as little as 10 shares.

CGTN Africa

Related story: Africa's richest man Dangote's IPO out of reach in Nigeria

Africa's richest man Dangote's IPO out of reach in Nigeria

 

The industrialist Aliko Dangote is turning to Nigerians to help finance the next growth phase of his oil refinery: The richest man in Africa announced that he is seeking to attract about $1.6 billion (€1.4 billion) by going public.

This initial public offering of Dangote Industries is intended to help support a $14.3 billion expansion, which would more than double the refinery's production capacity. In absolute numbers, it would increase capacity from 700,000 barrels per day (bpd) to 1.4 million bpd.

It would also include new petrochemical and refining units designed to reduce Nigeria's reliance on imports of some petrochemical products while also allowing the plant to produce different grades of diesel.

This plan would make the refinery one of the largest single-site refining complexes in the world.

Dangote's ambitious plans also include the launch of a processing plant in Kenya to extend his reach from the Atlantic to the Indian Ocean, which is planned to be launched in partnership with governments in eastern Africa.

African success story

Since it began operations in 2024, the Dangote Petroleum Refinery has started to reshape Nigeria's fuel market and has become one of the few businesses in the world to benefit from the ongoing supply disruptions caused by the war in Iran.

The refinery has become an important supplier of petrol and other fuels domestically and abroad; in fact, it made Nigeria a net exporter of refined fuel for the first time after reaching its full capacity in early 2026.

The refinery reported making an after-tax profit of $1.82 ​billion in the first half ​of 2026, following ⁠a $476 million loss for all of 2025.

Things appear to be on the up-and-up for Dangote — so, why is the company seeking public investment now?


Why is Dangote going public?

Ayodele Oni, an energy analyst and partner with the Bloomfield Law Practice in Lagos, told DW that the public offering could be a "game changer," as it alters the role of who could stand to benefit from Dangote's expansion drive.

Oni said equity invested by potentially millions of Nigerian and international shareholders would shield the corporation from having to rely solely on expensive dollar debt "with permanent Naira capital, which matches a business now earning heavily in Naira."

This could also unlock additional long-term investment as any "listed company answers to ... its shareholders every quarter."

"That transparency is precisely what long-term lenders and international partners want to see before the next billion is committed," Oni said.

He said this would turn into a sustainable model for Dangote, as the approach would be designed to permanently "lower its cost of capital for every future phase."

For 'the people' of Nigeria

Oni summarized the potential of the deal by referring to it as a restructuring of both who bears the risk — and who stands to share with the reward, with "the people" being the greatest beneficiaries of the IPO, at least to his mind.

Opening up the ownership of the refinery business to ordinary Nigerians does not automatically mean that many can afford it, however.

The pricing of the initial offering is indeed priced at an affordable 525 Naira (€0.34/$0.39) a piece for each of the 4.1 billion ordinary shares, and a minimum of just 10 shares.

At the signing ceremony in Lagos, Dangote said the company was trying to "make sure that the majority of … our drivers, our cook, our servants, our managers, everybody will have an opportunity to have a stake in the refinery."


Nigeria: Deep inequality, deeper pockets

In a country where almost two-thirds of the population is struggling with extreme poverty, according to Nigeria's National Bureau of Statistics, that figure can translate into 10% of the minimum wage — for people who are fortunate enough to have a job.

Entry-level employees and workers who perform menial tasks at Dangote are fortunate enough to earn almost four times the minimum wage in Nigeria, according to media reports — though this still translates to only about $150 a month in a country that has been witnessing steep inflation, especially in petrol prices. For most, seeing any personal benefit by investing in Nigeria's oil remains a pipe dream.

Charles Asiegbu, a policy and economic analyst who has worked as a consultant for various Nigerian organizations, told DW that Dangote's description of the offer as "for the people" could still qualify as a "psychological masterstroke" for those who can afford to invest.

Asiegbu said broader ownership could bring a large number of Nigerians into one consolidated platform, changing how they view the refinery.

"With millions as shareholders, it would shift from a private enterprise to a national asset in the public consciousness," Asiegbu said.

IPO excites investors

Nigerians who can afford to invest in Dangote appear to quickly be adopting that mindset.

Olamilekan Oladehinde, a Nigerian retail investor, told DW that he is "excited" to partake in the launch and buy shares. He said Dangote was now much more than just a private enterprise: It has become a key national asset that addresses direct social problems in Nigeria — including fuel shortages.

"They're trying to expand, and that's something I am very proud and happy to identify with," Oladehinde said. "The fact that it's also owned by a Nigerian makes me more than happy, and that's why I will be buying a stake in the company," he said about the richest man in Africa.

Risks and opportunities

Oladehinde said he had no concerns about investing in Dangote — despite the fact that various market experts have cautioned investors to be mindful of potential risks, especially because refining is a cyclical business.

Oni said Dangote was riding a wave during the current situation across the Middle East; however, fortunes could change — especially when the tensions around the Strait of Hormuz eventually ease. A return to steep competition in oil prices from those Middle Eastern countries could then saturate markets.

Dangote's strengths were a mitigating factor, Oni said: "The Middle East disruption showed that a refinery on [Nigeria's] Atlantic coast can supply Europe and the Americas faster than the Gulf can — and, at 700,000 bpd, the plant has already proven the model, so the expansion is about scale on an existing site, which is the cheapest capacity anyone can build."

Oladehinde said this was exactly the outlook that he will be betting on. "I believe the time has come for us," he said. "We can't lose this the momentum."

By Abiodun Jamiu, DW

World Bank backs Nigeria 2026–2032 plan with $1.25 billion to spur jobs, private investment

The World Bank Group has approved a new long-term partnership strategy for ​Nigeria alongside $1.25 billion in financing, aiming ‌to drive job creation and economic growth by unlocking private sector investment and expanding ​access to energy, digital, and agricultural ​services.

The World Bank Group approved a ⁠2026–2032 Country Partnership Framework for Nigeria ​and $1.25 billion financing package aimed at driving ​job creation through private sector–led growth.

The strategy builds on recent reforms that have lifted growth, revenues ​and reserves, and aims to translate ​gains into broader living standards.

Targets expanded access: energy ‌for ⁠32 million people, broadband for 58 million, better health and nutrition for 40 million and support for 9.5 million farmers.

Financing ​backs reforms ​to ⁠deepen capital markets, modernise digital regulation, expand electrification, ease regional ​trade, improve farm inputs and boost ​domestic ⁠revenues.

Officials say unlocking private investment and tackling structural constraints - supported by guarantees and ⁠policy ​reforms - is key to ​sustaining growth, resilience and poverty reduction.

By MacDonald Dzirutwe, Reuters

Stablecoins gain in Nigeria for cross-border transfers

Nigerians are increasingly turning to U.S. dollar-pegged digital tokens, or stablecoins, to move money ​across borders, as households and small businesses ‌seek cheaper and faster alternatives to traditional channels, the IMF said on Tuesday.

The Fund said what began as a ​niche crypto use has grown into a significant payments ​route, with Nigeria receiving about $59 billion in crypto ⁠inflows between July 2023 and June 2024 ​and accounting for roughly 60% of stablecoin inflows in ​sub-Saharan Africa.

Stablecoins - cryptocurrencies pegged to assets and designed to hold a stable value - have gained global traction, backed in part by support from U.S. President ​Donald Trump.

Their price stability, combined with fast transfers via smartphones ​and digital wallets, has driven rapid adoption in Nigeria, the IMF ‌said.

For users, ⁠they offer near-instant cross-border payments and a way to store value outside a volatile naira currency, effectively bridging crypto markets and traditional finance.

They can also undercut conventional ​remittance channels, where ​sending $200 to ⁠sub-Saharan Africa costs on average about 9% of transaction value, compared with a global average of ​6%, said the IMF, citing World Bank ​data.

However, their rise poses policy ⁠challenges.

Widespread use of dollar-linked tokens could weaken monetary policy by reducing demand for the naira, while shifting ⁠transactions ​to digital wallets complicates oversight ​and raises the risk of illicit flows, the IMF said.

By MacDonald Dzirutwe, Reuters

Nigeria becoming Africa’s largest fintech hub

Professor of Economics and Vice Chancellor of James Hope University (JHU), Olu Akinkugbe, has said Nigeria is rapidly emerging as Africa’s largest and most dynamic fintech hub.

Recall that Nigeria has the highest volume of venture capital funding on the continent and houses a booming ecosystem of over 430 startups. The sector is valued at over $10.6 billion and is anchored in Lagos, the commercial capital of Nigeria.

Speaking when members of the National University Commission (NUC) visited the Lagos campus of the institution, the don observed that Nigeria was leading with innovations in payments, lending, and blockchain, thereby transforming the economy.

He also revealed that the institution’s Fintech programme was strategically designed to produce graduates who would not only understand financial systems but could harness big data, machine learning, and predictive analytics to drive inclusion, efficiency, and security in financial services.

Noting that the institution was in advanced talks with the nation’s Fintech ecosystem, he added it was also having conversations with the University of Texas in Dallas, and two other universities in Canada and East Asia to collaborate on technological solutions that would contribute to digital innovation on the continent.

According to him, the NUC is a vital regulatory body to nearly 310 universities across our nation that plays an indispensable role in maintaining standards, ensuring relevance, and fostering global competitiveness.

He told the guests: “Your (NUC’s) consistent engagement with tertiary institutions strengthens our sector and guarantees that the degrees we award remain symbols of genuine scholarship and integrity. For this noble mandate, we express our profound respect and gratitude.”

By Sunday Aikulola, The Guardian

Nigeria’s $118 billion stock market slips as traders cash out after weeks of gains

Nigeria’s stock market paused for breath on Thursday after weeks of relentless gains, with investors taking profits in several high-flying stocks even as the broader rally remained intact.

The benchmark NGX All-Share Index fell 0.1% to close at 252,243.11 points, trimming 265.08 points from the previous session.

The decline was modest compared with the market’s recent run, which has pushed Nigerian equities among the world’s strongest-performing assets this year.

Despite Thursday’s pullback, the market is still up 5.22% over the past week, 20.51% over the last month and 62.1% since the start of 2026, extending a rally fueled by banking stocks, industrial giants and renewed foreign investor interest in Africa’s largest economy.

Trading activity, however, slowed.

A total of 1.04 billion shares worth NGN 41.5 billion were traded in 74,677 deals, representing a 34% drop in volume and a 55% decline in turnover compared with Wednesday’s session. The weaker activity suggests some investors are becoming more selective after the market’s rapid climb.

Nigeria’s stock market capitalization now stands at NGN 161.7 trillion, equivalent to roughly $118 billion.

Among individual stocks, logistics company Red Star Express led gainers after jumping 18.59% to NGN 31.90 per share. It was followed by Cornerstone Insurance, Austin Laz & Company and Learn Africa.

On the losing side, Zichis Agro Allied Industries dropped 10.09%, while FTN Cocoa Processors, Meyer and RT Briscoe also posted steep declines.

Trading was dominated by retail-driven activity in mid- and large-cap stocks. Chams recorded the highest traded volume with 128 million shares exchanged, followed by VFD Group, First HoldCo and Access Holdings.

Sector performance was mixed. Insurance stocks outperformed, with the NGX Insurance Index gaining 0.46%, while the NGX Pension Index also advanced.

Oil and gas stocks remained near multi-year highs, with the sector index now up more than 128% this year as investors continue betting on energy earnings and naira-driven revenue growth.

The latest market pause comes as investors assess whether the rally can be sustained after months of aggressive buying.

Analysts say expectations of stronger corporate earnings, currency stability and improving foreign exchange liquidity have helped support sentiment toward Nigerian assets in recent months.

Still, the sharp drop in turnover on Thursday may signal growing caution among traders after one of the fastest stock market rallies Nigeria has seen in years.

By Ayodeji Adegboyega, Business Insider Africa

President Tinubu urges global finance overhaul as debt costs crowd out spending

Nigeria will spend about $11.6 billion servicing its ‌debt in 2026, nearly half of its projected government revenue, President Bola Tinubu said, as he called for an overhaul of a global financial system he said penalises African borrowers.

Debt-servicing costs are crowding out spending on infrastructure, healthcare and education, ​he said, despite a government tax overhaul aimed at boosting revenues in Africa's most populous ​country. Nigeria spent $5.15 billion servicing its debt in 2025, data from the Debt Management ⁠Office showed.

In a speech at the Africa Forward Summit in Nairobi on Tuesday, Tinubu said high borrowing ​costs and limited access to long-term finance were diverting resources away from industry, skills and infrastructure, in ​what he called a structural disadvantage for African economies. The summit, co-hosted by Kenya and France, drew leaders from more than 30 countries.

"Every single dollar that leaves our treasury to pay punitive interest rates is a dollar that did not go ​into our steel sector, our textile mills, our agro-processing plants, or our digital industries," he said, adding ​it also meant fewer trained engineers and less affordable power for factories.

Now in his third year in office and ‌aiming for ⁠re-election in January 2027, Tinubu has rolled out Nigeria's biggest reforms in decades, scrapping costly fuel and energy subsidies, devaluing the currency and overhauling the tax system in a bid to stabilise an economy hit by inflation, foreign exchange shortages and external shocks.

He said the "painful, homegrown" reforms had stabilised macroeconomic indicators and ​lifted investor sentiment.

But he ​added that the gains ⁠were being eroded by a global financial system that treats African sovereigns as persistently high-risk borrowers, driving up interest costs.

Analysts led by the Nigerian Economic Summit ​Group said this week that debt servicing remains a key vulnerability for the ​country.

Tinubu called ⁠for reforms including cheaper financing and deeper economic integration that prioritises Africa's growth and prosperity.

He also urged curbs on illicit financial flows and greater support for industrialisation, saying Africa still accounts for less than 2% of global ⁠manufacturing.

"Nigeria ​is not asking for charity," he said. "We're demanding a financial system ​that intentionally enables Africa to industrialize, to process its own minerals, refine its own crude oil, manufacture its own pharmaceuticals, and ​compete fairly in global markets."

By Camillus Eboh, Reuters

A handful of companies now control over 90% of Nigeria’s $114 billion stock market

A small group of companies now controls more than 90% of Nigeria’s stock market, underscoring how a powerful rally is being driven by a narrow set of dominant firms.

By the end of April, large-cap stocks accounted for about $104 billion (N142.79 trillion) of the market’s total value of roughly $114 billion (N155.70 trillion).

This concentration shows a market where a relatively small number of companies shape overall performance, liquidity, and investor sentiment.

The surge has been driven by sustained investor demand for telecoms, industrial goods, energy, and banking stocks, sectors viewed as more resilient in an environment marked by inflation, currency volatility, and economic adjustment.

Market leaders such as MTN Nigeria, BUA Foods, and Dangote Cement remain central to the rally, supported by strong earnings, scale, and pricing power.

Energy companies have also benefited from higher oil prices and foreign exchange adjustments, while banks have attracted renewed interest on the back of rising interest income and recapitalisation expectations.

The trend has been reinforced by institutional and foreign investors, who typically favour large, liquid stocks when allocating capital in frontier markets.

Over the past year, the value of these dominant companies has more than doubled, reflecting a combination of price gains, earnings growth, and currency-driven valuation changes following the naira’s devaluation.

In April alone, the segment added about $20 billion (N27.39 trillion), highlighting the pace at which valuations have expanded.

This concentration has helped drive Nigeria’s broader market rally, pushing equities to record highs and making the country one of the best-performing markets globally this year.

But it also points to structural imbalances.

Smaller and mid-sized companies continue to attract limited investor attention, leaving market participation relatively shallow despite headline gains.

That imbalance means overall market performance is heavily influenced by a handful of stocks, increasing vulnerability to sector-specific shocks or shifts in investor sentiment.

The pattern mirrors global trends, where large-cap companies increasingly dominate returns, particularly in markets such as the United States, where a small group of technology firms has driven much of the equity rally.

For Nigeria, the near-term outlook remains positive. Strong earnings, ongoing reforms, and improved foreign exchange liquidity are expected to sustain investor interest in leading companies.

However, analysts say broader participation across smaller stocks will be critical for building a deeper and more balanced market over time.

Ayodeji Adegboyega, Business Insider Africa

Stock market in Nigeria surges as industrial stocks power a strong rally

Nigeria’s equities market extended its strong run on Tuesday, with a sharp rise in industrial and energy stocks lifting the benchmark index to new highs and reinforcing one of the world’s best-performing market trends this year.

The NGX All-Share Index climbed 2.24% to close at 228,602.00 points, gaining 4,999.71 points in a single session. The move pushes the market’s return to 46.9% so far in 2026, underlining sustained investor appetite despite macroeconomic uncertainties.

Trading activity was robust. A total of 907.9 million shares worth N68.2 billion were exchanged in 72,697 deals.

Compared with the previous session, volume rose 34% and turnover jumped 55%, even as the number of deals declined by 12%, suggesting larger ticket trades dominated the session.

Market capitalisation stood at about N147.3 trillion, equivalent to roughly $107 billion.

Gains were broadly distributed, with 39 stocks gaining and 39 declining, showing a balanced but active market.

Industrial names led the rally. Lafarge Africa posted the maximum daily gain of 10% to close at N324.50, alongside Industrial & Medical Gases and FTN Cocoa Processors, which also rose by the daily limit. Austin Laz & Company followed closely with a 9.71% increase.

The strong performance in industrial counters helped push the NGX Industrial Index up 4.86% on the day and nearly 80% year-to-date, highlighting renewed investor interest in infrastructure-linked and manufacturing plays.

Banking stocks weigh on losers’ chart

On the downside, banking and mid-tier names faced selling pressure. United Bank for Africa declined 10% to N44.55, while Trans-Nationwide Express, Jaiz Bank and Berger Paints also recorded steep losses.

Despite the declines, banking stocks still dominated trading volumes, reflecting continued liquidity and investor positioning in the sector.

Access Holdings led activity with 220 million shares traded, followed by Fidelity Bank, Wema Bank and Linkage Assurance.

Sector performance remained strong across the board. The NGX Oil & Gas Index rose 4.66%, taking its year-to-date return above 100%, while the Consumer Goods and Main Board indices also posted solid gains.

The NGX Top 30 and Premium indices, which track large-cap stocks, continued to trend higher, reinforcing the role of heavyweight companies in driving the rally.

Nigeria’s stock market has attracted increased attention in 2026 as investors seek protection against inflation and currency volatility, while also rotating into equities with strong earnings outlooks.

Reforms in the foreign exchange market and improving corporate profitability have also helped restore confidence, drawing both local institutional funds and foreign portfolio investors back into equities.

With returns nearing 50% this year, the Nigerian market is emerging as one of the standout performers globally, though analysts warn that volatility could increase as valuations rise and profit-taking sets in.

By Ayodeji Adegboyega, Business Insider Africa

Nigeria stocks hit fresh record as $107 billion market extends one of world’s top rallies

Nigeria’s stock market closed at another record on Friday, extending one of the world’s strongest equity rallies this year as gains in banking and industrial shares lifted the Nigerian Exchange Limited’s total value to N145.3 trillion ($107.2 billion).

The benchmark NGX All-Share Index rose 1.3% to 225,724.33 points, taking gains to 3.94% over the past week, 12.34% over the past month, and 45.05% year-to-date.

A total of 627.4 million shares worth N44.39 billion ($32.7 million) were traded in 55,081 deals. Compared with the previous session, turnover rose 17%, while trading volume fell 6%.

Nigeria has become one of the standout frontier markets of 2026, helped by stronger corporate earnings, bank recapitalisations, domestic pension-fund demand and investor bets that economic reforms will improve long-term growth.

Banking shares dominated volumes, with Access Holdings, United Bank for Africa, Wema Bank and Zenith Bank among the most actively traded stocks.

Investors are now watching whether the market can cross the N150 trillion ($110.6 billion) milestone in coming sessions.

By Ayodeji Adegboyega, Business Insider Africa

President Tinubu names Taiwo Oyedele as new finance minister

Nigerian President ​Bola Tinubu has approved ‌a minor cabinet shuffle that removed two ministers ​and promoted a ​junior official to the key ⁠post of finance ​minister, his office said in ​a statement on Tuesday.

Taiwo Oyedele, previously minister of state ​for finance, replaced Wale ​Edun as minister of finance ‌and ⁠coordinating minister of the economy.

Housing and urban development minister Ahmed Musa Dangiwa ​also ​exited ⁠the cabinet, with Muttaqha Rabe Darma ​named ministerial nominee for ​the ⁠role, the statement said.

Reuters

Nigerian banks raise $3.36 billion in major reform drive

The Central Bank of Nigeria says 33 banks have met new capital requirements under a major recapitalization programme. The exercise raised $3.36 billion, boosting financial stability and strengthening the sector’s ability to support economic growth.

CGTN Africa

Nigerian fintech Redtech plans to raise $100 million for expansion

CEO Emmanuel Ojo says the company will first extend its services to 29 African countries, after which they will consider a Series A funding round. Redtech expects annual transactions on its platform to grow from $25 billion in 2025 to $100 billion within two years, with the transaction value tripling to $73.6 billion. Backed by tycoon Tony Elumelu, Redtech is also looking to expand its equity base and introduce new products across the continent.

CGTN Africa

PayPal Goes Live In Nigeria Through Paga, Enabling Global Payments And Local Withdrawals

Paga, Nigeria’s pioneering fintech company, and PayPal, the global payments and commerce platform, today announced the availability of live account linking for customers in Nigeria. The integration enables users to access PayPal-supported cross-border payments directly through Paga’s digital wallet, allowing them to receive international payments and withdraw funds locally in Naira.

With this integration, users in Nigeria can link their PayPal accounts directly to their Paga wallets to receive cross-border payments from PayPal supported markets, shop with global PayPal merchants, and access their funds locally. The service also enables Nigerian merchants and entrepreneurs to reach PayPal’s global network of over 400 million users worldwide, and grow their businesses internationally.

Through Paga, users can easily access their PayPal balances and withdraw funds across everyday financial needs, including spending via card, transferring to local bank accounts, or paying bills and merchants within the Paga ecosystem, providing a seamless bridge between global earnings and local use. The collaboration strengthens Nigeria’s financial services ecosystem by promoting cross-border commerce, empowering merchants and small business growth, and supporting the country’s digital economic infrastructure.

“We are proud to make this integration live and available to users across Nigeria,” said Tayo Oviosu, Founder and Group CEO of Paga. “Whether you’re a freelancer receiving international payments, a business selling online, or a consumer shopping globally, this collaboration makes it easier to access and use global funds locally, in a way that’s simple, secure, and built for our markets.”

“We’ve been intentional about partnering with local innovators like Paga and developing solutions that help Nigerians earn, spend, and grow,” said Otto Williams, Senior Vice President, Regional Head and General Manager of PayPal Middle East and Africa. “This collaboration helps strengthen the broader payments ecosystem by supporting local innovation, expanding financial inclusion, and enabling more consumers and businesses to participate confidently in the digital economy.”

Nigeria’s digital payments market continues to expand rapidly, with transaction values reaching ₦657.8 trillion in 2023 and more than 30 million active mobile wallet users (Novatia Consulting, 2024). With over 21 million users and a fast-growing API infrastructure, Paga is uniquely positioned to scale PayPal’s services to both consumers and businesses across the country, leveraging its local settlement network, digital wallet, and Visa card integrations positioning it as a secure and trusted local partner for cross-border digital payments.

To access PayPal services through Paga, users can log in to the Paga app or www.paga.com, link their PayPal account, and start receiving international payments into their Paga wallet and use those funds to pay bills, transfer to bank accounts, or shop online.

By Grace Ashiru, Tech In Africa

EU removes Nigeria from financial crime high-risk list

The European Union has officially removed Nigeria from its list of high-risk jurisdictions for money laundering and terrorism financing, a decision expected to ease cross-border transactions and improve investor confidence.

The update was published on the European Commission’s website and follows Nigeria’s removal from the Financial Action Task Force greylist in 2025, following a series of anti-money laundering and counter-terrorism financing reforms.

Under the new decision, enhanced due diligence requirements applied to transactions involving Nigeria will be lifted from January 29, 2026, subject to procedural approval by the European Parliament and the Council of the European Union.

Explaining the move, the European Commission said the update reflects decisions taken by the FATF at its June and October 2025 plenaries, where several countries were removed from the list of jurisdictions under increased monitoring.

“The EU has added new third-country jurisdictions to the list (Bolivia and the British Virgin Islands) and delisted a number of others (Burkina Faso, Mali, Mozambique, Nigeria, South Africa and Tanzania),” the Commission stated.

It noted that entities covered by the EU’s anti-money laundering framework are required to apply enhanced vigilance when dealing with countries on the high-risk list, adding that Nigeria’s removal means such heightened scrutiny will no longer apply to Nigerian-related transactions within the bloc once the regulation takes effect.

Reacting to the development, the Minister of State for Finance, Dr Doris Uzoka-Anite, described the decision as a major boost for the country.

In a post on X on Thursday, she said, “Big win for Nigeria! Removed from the EU’s financial ‘high-risk’.” She added, “Congrats to President @officialABAT on this achievement. As Minister of State for Finance, I’m proud of this boost to trade and investor confidence.”

Also commenting on it, the Coordinating Minister of the Economy and Minister of Finance, Mr Wale Edun, said Nigeria’s exit from the European Union’s high-risk third-country list is a major boost for investor confidence.

Speaking in Lagos on Thursday at the NESG 2026 Macroeconomic Outlook Presentation, Edun said, “Exiting the EU high-risk list is a landmark achievement for Nigeria. It sends a clear signal to investors that Nigeria is serious about maintaining a stable, credible, and transparent business environment.”

Nigeria’s exit from the EU high-risk list is expected to have significant economic and financial implications. Countries classified as high-risk often face higher transaction costs, delayed payments, tighter correspondent banking relationships, and reduced foreign investment.

With the lifting of enhanced due diligence requirements, Nigerian banks, exporters, fintechs, and other businesses transacting with European partners are expected to face fewer compliance hurdles, a development that could improve trade flows, ease remittances, and support capital inflows.

The decision also reinforces Nigeria’s credibility as it seeks to reform its financial system and curb illicit financial flows, at a time when the government is pushing to attract foreign investment and deepen integration into global financial markets.

Nigeria was removed from the FATF greylist in October last year after implementing reforms to strengthen its anti-money laundering and counter-terrorism financing framework.


The country was delisted alongside South Africa, Burkina Faso, and Mozambique, all of which had stepped up efforts to combat money laundering and terrorist financing.

South Africa and Nigeria were added to the FATF greylist in February 2023, Mozambique in October 2022, while Burkina Faso was first designated in February 2021.

SyndiGate

Nigeria's drive to build a digital economy faces major setbacks

Nigeria’s ambition to build a digital economy is facing a major hurdle as the country grapples with cuts, vandalism, and access disputes. This has triggered thousands of network outages, slowing broadband growth, disrupting businesses, raising concerns over the country's digital future.

CGTN Africa

Video - Nigeria implements reform aimed at widening tax net

Nigeria has launched one of its most ambitious tax reforms in decades, aimed at broadening the tax base, streamlining collections, and boosting government revenue. The policy, introduced following a costly fuel subsidy removal and currency reforms that increased the cost of living, has generated both hope and concern across Africa’s largest economy.

CGTN Africa

Nigeria’s private sector shows strong growth at end of 2025

Nigeria’s private sector maintained solid growth momentum at the end of 2025, with the headline Purchasing Managers’ Index (PMI) posting 53.5 in December, slightly down from 53.6 in November.

The latest PMI reading marks the thirteenth consecutive month of business condition improvements, according to data from Stanbic IBTC Bank Nigeria PMI survey compiled by S&P Global.

Growth in December was driven by improved customer demand, which supported a marked increase in new orders. This was the fourteenth consecutive monthly rise in sales, only slightly weaker than November’s increase. Companies responded by expanding output sharply, with agriculture leading growth among the four broad sectors surveyed.

Businesses also increased their purchasing activity and inventory holdings due to stronger customer demand. Employment rose for the sixth consecutive month, though only marginally and at the slowest pace since June 2025.

Inflationary pressures picked up modestly in December but remained close to recent lows. Higher raw material prices led to a marked rise in purchase costs, while staff costs increased as firms paid employees for additional work. In response, companies raised their selling prices, with manufacturing registering the sharpest increase.


Business confidence improved significantly, jumping to a six-month high with nearly 59% of respondents predicting growth. This optimism was largely based on planned investments in business expansions and new branch openings.

Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, commented that while input prices increased sharply in December from November’s near five-year low, the inflation rate remained weaker than the 2025 average. He attributed the pickup in inflationary pressures to higher spending patterns during the festive period.

Oni projected Nigeria’s economy to grow by 3.8% in 2025 and 4.1% in 2026, with both manufacturing and services likely to see higher growth in 2025 compared to 2024 levels.

Investing.com

Video - Nigeria tightens cash withdrawal limits

Nigeria's central bank capped weekly access for individuals at $345 and $3,450 for businesses. The move is designed to combat money laundering, boost financial security, and support the shift to a cashless economy.

CGTN Africa