The International Finance Corporation and Standard Chartered Bank have launched a $300m risk-sharing facility to expand access to supply chain finance for businesses across eight African countries, including Nigeria, as firms on the continent continue to grapple with funding shortages.

The initiative, announced in a statement by Standard Chartered Bank on Wednesday, is expected to support supply chain and trade finance transactions worth about $1.9bn over the next three years, benefiting more than 500 suppliers, including small and medium-sized enterprises.

According to the statement, the programme will be implemented in Côte d’Ivoire, Egypt, Ghana, Kenya, Nigeria, South Africa, Tanzania and Zambia, targeting sectors such as agriculture, healthcare, and manufacturing.

The facility is designed to help suppliers receive payments faster, thereby improving cash flow and enabling businesses to expand production, pay workers, and invest in growth.

Under the arrangement, IFC, the private sector investment arm of the World Bank Group, will provide guarantees of up to $150m, with an initial commitment of $100m. The guarantees will support transactions denominated in both United States dollars and selected local currencies.

The statement noted that the risk-sharing structure would cover up to $300m in supply chain and trade finance assets originated by Standard Chartered across Africa.

It explained that the programme would deploy financing tools, including payables finance, receivables discounting, and pre-shipment finance schemes, to improve access to working capital for smaller businesses.

“The facility will help ensure their suppliers get faster payments, freeing up the working capital they need to improve production, pay wages, and hire,” the statement said.

The partnership comes amid growing concerns over the financing gap facing businesses in emerging markets, particularly SMEs that often struggle to secure affordable credit despite playing a critical role in economic activity and employment generation.

IFC Vice President for Products and Clients, Mohamed Gouled, said supply chain finance remained one of the fastest ways to address the funding challenges confronting businesses in developing economies.

“Supply chain finance is among the fastest ways to narrow the growing finance gap that businesses, particularly small and medium enterprises, are facing in emerging economies,” Gouled said.

He added, “By partnering with Standard Chartered to support companies at the centre of strategic value chains, we can unlock much-needed working capital at scale for businesses across Africa, including smaller firms and farmers, making supply chains more competitive and boosting job creation.”

The statement projected that the initiative could indirectly benefit more than one million farmers through stronger value-chain linkages and improved access to finance.

Chief Executive and Head of Coverage, Standard Chartered Africa, Dalu Ajene, said the partnership would strengthen supply chains and encourage sustainable business expansion across the continent.

“This $300m facility with IFC underscores our shared commitment to strengthening Africa’s supply chains and enabling sustainable business growth,” Ajene said.

He noted that the bank’s presence across major trade corridors linking Africa with Europe, Asia, the Middle East and the Americas would help channel financing to businesses involved in regional and global trade.

“By expanding access to supply chain finance, we are helping African companies unlock liquidity, manage risk, and invest with confidence,” he said.

Ajene added that the collaboration would empower businesses ranging from large corporations to local suppliers to participate more actively in international trade while supporting job creation and inclusive growth.

The statement highlighted the rapid growth of the global supply chain finance market, which reached an estimated $2.7tn in 2025, representing an eight per cent increase from the previous year.

However, it noted that access to such financing remains limited in many emerging and low-income economies because commercial lenders have traditionally focused on developed markets.

According to the statement, the new facility seeks to reduce risk associated with short-term trade and supply chain finance portfolios, thereby encouraging greater lending activity in markets where capital remains scarce.

Nigeria attracted $10.37bn in capital importation in the first quarter of 2026, representing an 83.83 per cent increase from the $5.64bn recorded in the corresponding period of 2025, according to the National Bureau of Statistics.

The latest Capital Importation Report released by the bureau on Wednesday also showed that capital inflows rose by 60.97 per cent from $6.44bn recorded in the fourth quarter of 2025, reflecting renewed foreign investor interest in the country’s financial markets.

The report stated, “In Q1 2026, total capital importation into Nigeria stood at $10.37bn, higher than $5.64bn recorded in Q1 2025, indicating an increase of 83.83 per cent. In comparison to the preceding quarter, capital importation increased by 60.97 per cent from $6.44bn in Q4 2025.”

Analysis of the inflows showed that portfolio investment remained the dominant source of foreign capital, accounting for $9.86bn or 95.09 per cent of the total amount imported into the economy.

The NBS disclosed that foreign direct investment stood at $135.08m, representing only 1.30 per cent of total capital inflows, while other investments accounted for $374.48m or 3.61 per cent.

“Portfolio Investment ranked top with $9.86bn, accounting for 95.09 per cent, followed by Other Investment with $374.48m, accounting for 3.61 per cent. Foreign Direct Investment recorded the least with $135.08m, representing 1.30 per cent of total capital importation in Q1 2026,” the report added.

A further breakdown showed that money market instruments attracted the largest share of portfolio investments at $6.50bn, while investments in bonds amounted to $3.23bn. Equity investments under the portfolio category stood at $131.81m.

The banking sector emerged as the biggest destination for foreign capital during the quarter, attracting $7.55bn, representing 72.79 per cent of total inflows.

The financing sector followed with $2.43bn or 23.42 per cent, while the production and manufacturing sector attracted $152.27m, accounting for 1.47 per cent of total capital imported.

According to the report, “The Banking sector recorded the highest inflow with $7.55bn, representing 72.79 per cent of total capital imported in Q1 2026, followed by the Financing sector, valued at $2.43bn (23.42 per cent), and the Production/Manufacturing sector with $152.27m (1.47 per cent).”

Other sectors that received foreign investments included shares, trading, agriculture, information technology services, telecommunications, oil and gas, transport, construction, healthcare, education, and consultancy services.

The United Kingdom remained Nigeria’s largest source of foreign capital, accounting for $5.08bn or 49.01 per cent of total inflows. The United States followed with $3.18bn, representing 30.69 per cent, while South Africa accounted for $983.83m or 9.49 per cent.

The NBS said, “Capital importation during the reference period originated largely from the United Kingdom with $5.08bn, representing 49.01 per cent of the total capital imported. This was followed by the United States with $3.18bn (30.69 per cent) and the Republic of South Africa with $983.83m (9.49 per cent).”

Among financial institutions, Standard Chartered Bank Nigeria Limited received the highest capital inflow during the quarter at $4.41bn, representing 42.56 per cent of the total.

Stanbic IBTC Bank Plc followed with $2.78bn or 26.79 per cent, while Rand Merchant Bank handled $930.82m, accounting for 8.97 per cent. Other banks that facilitated capital inflows into the country during the period included Citibank Nigeria, Access Bank, First Bank of Nigeria, Guaranty Trust Bank, Zenith Bank, FCMB, Ecobank, Fidelity Bank, and United Bank for Africa.

The report noted that the capital importation data was compiled from information supplied by the Central Bank of Nigeria and captured fresh foreign capital reported by commercial banks. It added that the figures did not include other components of foreign direct investment, such as reinvested earnings.

Africa can unlock more than $469bn in additional annual revenue without raising statutory tax rates, according to the African Development Bank.

Chief Economist and Vice President for Economic Governance and Knowledge Management at the African Development Bank, Prof Kevin Urama, said this in an interview with the News Agency of Nigeria on Wednesday in Abuja.

He said the additional revenue could be mobilised without increasing tax rates, stressing that stronger domestic resource mobilisation remained the most sustainable source of development financing for the continent.

According to him, improving tax administration through digitalisation, strengthening public institutions, and enhancing service delivery would significantly increase tax compliance.

“We see that by improving tax administration through digitisation and other reforms, just adopting best practices, the continent can mobilise more than $469bn extra without increasing tax rates.

It is simply about improving efficiency and strengthening compliance,” he said.

Urama said many citizens were reluctant to pay taxes because they often had to provide essential services such as electricity, water, and road infrastructure for themselves.

He noted that governments could improve voluntary tax compliance by delivering quality public services, strengthening transparency, and ensuring prudent management of public resources.

The economist said AfDB was supporting African countries, including Nigeria, to strengthen domestic revenue mobilisation through capacity building for national revenue authorities.

For years, Nigeria’s foreign exchange market has been shaped as much by uncertainty as by supply and demand. Importers complained about delays and documentation bottlenecks. Exporters often questioned whether existing procedures encouraged them to repatriate earnings through official channels. Investors worried about policy reversals and access to foreign exchange. The banks found themselves navigating changing regulations, multiple directives, and periods of market stress.

Against that backdrop, the launch of the fourth edition of the CBN’s Foreign Exchange Manual represents more than a regulatory update. It is the latest stage in a broader effort by monetary authorities to build a foreign exchange market governed less by discretion and more by clear rules, transparency and accountability.

The revised manual, which became effective on 1 June, comes after nearly eight years since the previous edition was issued in 2018. During that period, Nigeria’s economy experienced a global pandemic, oil price volatility, foreign exchange shortages, exchange rate reforms and a shift towards a more market-driven currency regime. Those developments exposed weaknesses in the existing framework and increased calls for clearer operating standards.

Speaking at the launch, CBN Governor, Mr Olayemi Cardoso, argued that the changes were necessary to align foreign exchange administration with present realities.

“Foreign exchange is more than a financial instrument; it is a critical enabler in any open economy. It anchors price stability, facilitates the flow of goods and capital, and shapes investor sentiment,” Cardoso said.

He noted that both global and domestic economic conditions had changed considerably over the past decade, requiring regulators to update the framework guiding market operations.

“Ongoing foreign exchange market reforms have made it necessary to revise the Manual to provide a more coherent and forward-looking regulatory framework. The last edition was issued in 2018, making this review both timely and necessary,” he added.

Yet beyond the ceremonial launch, the revised manual raises a broader question. Can clearer rules and stronger compliance requirements help deliver the stable, transparent and liquid foreign exchange markets that policymakers have promised for years?

Rules driving confidence

The CBN’s current reform programme has largely focused on restoring confidence in the foreign exchange market. Since assuming office, Cardoso has repeatedly argued that transparency, market discipline and credible price discovery are prerequisites for attracting investments and improving liquidity.

The revised manual appears designed to provide the operational framework for those objectives.

According to the Deputy Governor, Economic Policy Directorate, Dr Muhammad Abdullahi, the review formed part of a wider strategy initiated at the beginning of the current administration of the apex bank.

“It is important to note that the reform and comprehensive review of Nigeria’s Foreign Exchange Manual was initiated by the CBN Governor, Mr Olayemi Cardoso, from the very beginning of his administration as part of a broader agenda to restore confidence, improve transparency, deepen liquidity, and strengthen the overall functioning of Nigeria’s foreign exchange market,” Abdullahi said.

His remarks suggest that the manual should not be viewed in isolation. Rather, it follows a series of reforms introduced over the past two years, including the adoption of the Electronic Foreign Exchange Matching System, the Nigerian Foreign Exchange Code and efforts to unify exchange rate determination within the official market.

Those reforms sought to address longstanding criticisms that Nigeria’s foreign exchange market was fragmented, opaque and vulnerable to discretionary practices.

“A modern FX market cannot thrive in an environment characterised by opacity, fragmentation, delays, uncertainty, or excessive administrative bottlenecks,” Abdullahi said. “It requires trust, transparency, liquidity, efficient market infrastructure, prudent regulation, and responsible market conduct.”

The deputy governor argued that the revised manual would help create those conditions by standardising procedures, clarifying documentation requirements and establishing clearer responsibilities for authorised dealers and market participants.

The objective is not simply regulatory compliance. It is to reduce uncertainty.

Foreign exchange markets function most efficiently when participants understand the rules and have confidence that those rules will be applied consistently. Where ambiguity exists, businesses tend to delay investment decisions, traders demand higher risk premiums, and investors become cautious.

For Nigeria, where foreign exchange remains central to trade, manufacturing, education, healthcare and capital flows, such uncertainty carries significant economic costs.

This explains why the CBN repeatedly emphasised transparency and consistency throughout the launch event.

Cardoso also described the revised manual as part of efforts to strengthen “clarity, consistency, and market efficiency” while promising stronger monitoring mechanisms to ensure accountability across the system.

Whether those goals are achieved will ultimately depend on implementation. Regulations alone rarely change markets. Consistent enforcement does.

What has changed?

The practical significance of the revised manual lies in its detailed operational provisions.

While many of the changes may appear technical, they affect a wide range of economic activities, from import transactions and export proceeds to travel allowances and tuition payments abroad.

Among the notable revisions is the harmonisation of Personal Travel Allowance and Business Travel Allowance disbursements with the revised Bureau de Change guidelines. Under the new arrangement, 75 per cent of PTA and BTA transactions will be processed electronically, while only 25 per cent may be disbursed in cash.

The manual also increases allowable advance payments for imports from 15 per cent to 30 per cent. For businesses that depend on imported inputs, this could improve transaction flexibility and reduce delays associated with supplier payment arrangements.

Another important provision concerns export transactions. Processing of Form NXP, the principal export documentation platform, will now be free of charge. The manual also introduces specific provisions governing service exports, technology-sector remittances and Pan-African Payment and Settlement System transactions.

These additions reflect changes in the structure of Nigeria’s economy.

A growing share of foreign exchange earnings now originates from services, technology exports and regional trade rather than traditional merchandise exports alone. Regulatory frameworks that fail to recognise those realities risk becoming outdated.

The revised manual also introduces Non-Resident Investment Accounts and Non-Resident Ordinary Accounts, while allowing foreign companies operating in the extractive sector to repatriate 100 per cent of export proceeds.

Perhaps more significant for individual account holders is the removal of the mandatory Form A requirement for remittances using ordinary domiciliary accounts.

Although authorised dealer banks will still be required to verify the legitimacy of transactions, the change eliminates an administrative layer that many market participants considered cumbersome.

The manual further provides for tuition fee payments of up to $25,000 per semester for undergraduate and postgraduate studies abroad and allows transfers between export proceeds domiciliary accounts and ordinary domiciliary accounts under specified conditions.

Collectively, these provisions indicate a regulatory approach focused on reducing bottlenecks while maintaining oversight.

“Our goal is to reduce transaction frictions, improve processing timelines, deepen market confidence, encourage formal market participation, and create a more seamless and efficient experience for legitimate users of Nigeria’s foreign exchange market,” Abdullahi said.

For businesses and investors, the real measure of success will be whether these changes translate into faster processing, reduced compliance costs and more predictable access to foreign exchange.

Banks back discipline

Among market participants, commercial banks are likely to play the most critical role in implementing the revised framework.

As intermediaries between customers and the foreign exchange market, banks will be responsible for applying documentation standards, processing transactions and ensuring compliance with the new requirements.

It was therefore notable that bank chief executives used the launch event to publicly endorse the reforms.

Speaking on behalf of the Body of Banks’ Chief Executive Officers, the Group Managing Director of United Bank for Africa, Mr Oliver Alawuba, described the revised manual as a continuation of the CBN’s recent market reforms.

“Coming after the introduction of the Electronic Foreign Exchange Matching System and the Nigerian Foreign Exchange Code, this revised manual reinforces a clear policy direction of the Central Bank of Nigeria, a policy direction that anchors on transparency, ethical conduct, credible foreign exchange discovery, stronger documentation, improved oversight, and greater confidence,” Alawuba said.

He argued that reforms introduced over recent years had altered perceptions within the market.

“One of the things I always ask anytime I ask questions about Nigeria is that two years ago or three years ago, as a banker, if you meet your customer, they will ask you, ‘Do you have foreign exchange for us?’ But today, when you meet your customer, you will be the one asking the customer whether they have foreign exchange,” he said.

His remarks reflected the CBN’s broader objective of encouraging foreign exchange inflows into the formal market rather than outside official channels.

However, Alawuba also stressed that reforms could not succeed without discipline, saying, “We can’t do this reform without discipline. So what this manual comes with is the discipline of operators and regulators and all stakeholders as we continue to have a sustainable foreign exchange market.”

A similar theme emerged in remarks by the Group Managing Director of Access Holdings Plc, Mr Roosevelt Ogbonna.

The Nigerian capital market ended the week on a resilient note despite a sharp 38 per cent decline in turnover caused by the two-day Eid al-Adha public holidays. Although trading activity across major asset classes was significantly weakened by the break, the All-Share Index still posted a modest gain as investors conducted system checks ahead of the transition to the T+1 settlement cycle, JIDE AJIA reports

The Nigerian Exchange experienced a sharp contraction in trading activity for the week ended 29 May 2026. This retraction was primarily driven by a compressed trading timeline, as the Federal Government declared Wednesday, 27 May, and Thursday, 28 May, as public holidays to commemorate the Eid al-Adha celebrations.

Despite the lost momentum in total volume, underlying market sentiment remained quietly resilient. The benchmark All-Share Index managed a minor gain, while the markt prepared for a major regulatory milestone.

Volume, value realitie

The footprint of the two-day pause was starkly visible in the week’s trading statistics. Investors exchanged a total turnover of 2.398 billion shares worth N111.480bn in 241,313 deals. This represents a significant 38.12 per cent drop in volume and a 31.08 per cent decline in financial value compared to the preceding week, which had seen 3.875 billion shares valued at N161.757bn change hands across 334,745 deals.

Even with the shortened week and lower participation, buying interest in select heavyweights managed to push the NGX All-Share Index up by 0.27 per cent, closing the week at 250,385.47 points. Concurrently, aggregate market capitalisation closed at a robust N160.509tn.

Sector performance

As is typical on the local bourse, liquidity is concentrated heavily inside institutional banking and financial tickers. The Financial Services Industry anchored the week’s activity chart, clearing 1.656 billion shares valued at N48.229bn across 94,812 deals. This sector single-handedly accounted for 69.07 per cent of the total equity turnover volume and 43.26 per cent of the overall value.

The Services Industry secured a distant second place, recording a turnover of 265.448 million shares worth N4.530bn. The Information and Communications Technology Industry took third place, tracking 101.848 million shares worth N9.163bn.

On an individual stock level, the trio of Fidelity Bank Plc, Access Holdings Plc, and The Initiates Plc dominated order books. Together, they accounted for 903.681 million shares worth N19.227bn, commanding 37.69 per cent of the week’s total traded volume.

Shifting equities

Market breadth leaned negative for the week, signalling selective profit-taking as investors repositioned their portfolios. Overall, 34 equities closed higher, 51 ended lower, and 61 maintained their previous valuations.

International Energy Insurance Plc led the appreciation chart with a stellar 32.55 per cent surge, closing at N4.52 per share. It was followed closely by Sovereign Trust Insurance Plc, which climbed 20.61 per cent to finish at N2.75, and Tantalizers Plc, jumping 18.40 per cent to close at N4.89.

Conversely, Dangote Sugar Refinery Plc took a heavy hit, plunging 18.22 per cent to top the losers’ table at N71.15 per share. The Initiates Plc also pulled back after its high-volume sessions, shedding 15.98 per cent to close at N28.40.

Beyond secondary trading, the final week of May featured highly consequential updates for corporate funding and the fixed-income ecosystem, including Dangote Sugar’s Rights Issue. The exchange officially activated the trading code (RR26DANGSU) for Dangote Sugar Refinery Plc’s massive capital raise.

The company is offering over 8.09 billion ordinary shares at N60.00 per share based on two new ordinary shares for every three held. The trading window for these rights will remain open until 24 June 2026.

The debt market received an additional liquidity layer as the NGX listed supplementary units of existing Federal Government of Nigeria Bonds issued earlier in May. This expanded the outstanding units for both the 16.2499 per cent FGN APR 2037 and the 22.60 per cent FGN JAN 2035 tranches, providing institutional investors with deepened fixed-income depth.

The share prices of ABC Transport Plc, AIICO Insurance Plc, and Haldane McCall Plc were officially adjusted by the exchange following their respective ex-dividend dates, reflecting their cash distribution payouts to shareholders.

Migration to T+1

While the shortened week felt subdued on the surface, Friday, 29 May, marked a historic bookend for the Nigerian capital market. It was the final session operating under the legacy T+2 post-trade settlement timeline.

TAJBank Limited, Nigeria’s innovation-driven non-interest bank, has maintained its lead position as the country’s largest ethical bank, based on the statements of financial position approved by regulatory authorities at the end of the 2025 financial year.

The latest data from the bank’s FY2025 financial statement showed that the non-interest lender consolidated its frontline position in the subsector across gross assets, profit values, and other key performance indicators during the year.

Specifically, in the year under review, TAJBank’s total assets grew 41 per cent to N1.34tn from N953bn in the preceding year. Gross earning assets surged 81 per cent to N847.71bn from N467.38bn in FY2024, while total equity surged to N149.23bn, reflecting a 144 per cent growth over the N61.25bn recorded in FY2024.

A further analysis of the approved financial statement indicated that the bank posted N132.56bn in gross earnings, representing a 71 per cent growth over the N77.55bn in the previous year

Its profit before tax surged 74 per cent to N31.56bn in FY2025 from N18.17bn in FY2024, while its capital adequacy ratio stood robustly at 30 per cent.

Commenting on the bank’s performance, a chartered banker and former Director-General of the Chartered Institute of Bankers of Nigeria, Uju Ogubunka, said the financial metrics between 2024 and 2025 indicated massive progress.

Ogubunka, who is also the President of the Bank Customers Association of Nigeria, stated, “The bank’s performance is excellent evidence that it is aggressively penetrating its targets, especially in the rural areas, and thus contributing to the level of financial inclusion nationwide. It is also a testament to the profitability and viability of the non-interest banking sector in Nigeria.”

In his remarks, the Managing Director/Chief Executive Officer of TAJBank, Hamid Joda, said the stellar performance was a reflection of corporate dedication.

“The improving performance of our bank is a clear demonstration of the board and management’s strong commitment to making TAJBank the best ethical bank in Nigeria by all assessment parameters,” Joda said. “We owe our shareholders, customers, regulatory authorities, and workers a lot of gratitude for supporting our efforts targeted at transforming TAJBank into a global brand in the ethical banking space in the years ahead,” he added.

Similarly, the bank’s Executive Director, Sherif Idi, assured stakeholders of sustained value creation in line with the bank’s long-term business model. Idi said, “The FY2025 performance of TAJBank is in furtherance of its corporate vision and mission, and I want to assure all our stakeholders, particularly the shareholders and customers, that our bank shall continually promote their interest in line with our corporate shared values always.”