The Central Bank of Nigeria reduced the Monetary Policy Rate by 50 basis points to 26.5 per cent on 24 February 2026, after the Monetary Policy Committee’s 304th meeting. SAMI TUNJI examines the disinflation trends, foreign exchange stability and banking sector reforms supporting the decision, alongside the fiscal risks that could challenge the outlook

When the Monetary Policy Committee met for its 304th session in Abuja, it delivered what several analysts had expected by cutting the Monetary Policy Rate by 50 basis points to 26.5 per cent. However, the committee kept other key settings unchanged, retaining the standing facilities corridor around the MPR at +50 and -450 basis points and leaving the Cash Reserve Requirement for deposit money banks at 45 per cent.

The CBN’s policy shift rests on one claim and one constraint. The claim is that disinflation is holding and is being supported by the delayed effect of earlier tightening, exchange rate stability and improving food supply. The constraint is that the same environment still carries risks, including fiscal releases and election-related spending that could push inflation up again.

CBN Governor Olayemi Cardoso, speaking during a press briefing after the meeting, signalled that the rate cut was not a declaration that inflation risk had ended. When asked if Nigeria could now “go to sleep on inflation”, he said, “Caution is our watchword in the Central Bank.”

Disinflation as key trigger

Analysts at Afrinvest earlier noted that Nigeria’s “disinflation trend, alongside sustained accretion to external buffers (foreign exchange reserves up 2.4 per cent since November to $47.8 bn), continued naira appreciation (up approximately 6.7 per cent to N1,355.00/$1.00 in the official market), and stable energy goods prices (notably, PMS), provides the CBN with latitude for policy fleibility.”

Nigeria’s headline inflation rate declined marginally to 15.10 per cent in January 2026, down from 15.15 per cent recorded in December 2025, according to the Consumer Price Index report released by the National Bureau of Statistics. This decline came despite earlier projections by analysts that Nigeria’s inflation could climb to 19 per cent in January. The NBS report showed that the Consumer Price Index fell to 127.4 in January from 131.2 in December, representing a 3.8-point decrease. The NBS said the January headline inflation rate was 0.05 percentage points lower than the rate recorded in December. The inflation figure was the lowest in five years and two months, since November 2020, when inflation stood at 14.89 per cent. The MPC described January 2026 as the eleventh consecutive month of decline in year-on-year headline inflation.

The disinflation story is clearer when broken down. Food inflation declined 8.89 per cent in January 2026 from 10.84 per cent in December 2025, which the MPC linked to improved domestic food supply, sustained exchange rate stability and base effects. The food inflation figure marked the first single-digit reading in 128 months and the lowest since August 2011, when food inflation stood at 8.66 per cent.

Core inflation eased 17.72 per cent from 18.63 per cent, driven largely by a moderation in Information and Communication services. The MPC also pointed to a short-run indicator. Month-on-month headline inflation fell to negative 2.88 per cent in January 2026 from 0.54 per cent in December 2025. A negative monthly reading suggests that the direction of prices in that month was not just slower growth but an outright decline, even if the durability of that pattern still needs to be tested across subsequent prints.

Speaking at the press briefing after the 304th MPC meeting, Cardoso said the continued deceleration in inflation was driven mainly by the “continued effects of the contractionary monetary policy”, foreign exchange market stability, robust capital inflows and improvement in the balance of payments. He added that these conditions suggested that prior tightening had helped anchor expectations. While the disinflation was central to why the committee saw room to reduce the benchmark rate, it did not loosen system liquidity aggressively as other parameters were retained.

The MPC flagged fiscal risk as releases from the federation account increase, which could pose upside risks to inflation. If fiscal expansion accelerates, it can increase liquidity and weaken the disinflation trend, particularly in an economy where supply constraints are common. In that scenario, the CBN would face a choice between defending disinflation with tighter policy or tolerating higher inflation to protect growth and credit conditions. This is why the cut looks like an incremental test rather than a clear start of a long easing cycle.

FX stability, reserves and recapitalisation

The MPC also linked its disinflation outlook to sustained stability in the foreign exchange market and stronger external buffers. Cardoso disclosed that gross external reserves rose to $50.45bn, providing import cover of 9.68 months for goods and services. The CBN tied reserve accretion to both real-economy flows and confidence. He pointed to higher export earnings and increased remittance inflows as drivers that contributed to foreign exchange stability and investor confidence. Cardoso also referenced favourable trade developments, a current account surplus, rising non-oil exports and increasing diaspora remittances.

The CBN further welcomed the newly issued Presidential Executive Order 09, which redirects oil and gas revenues into the Federation Account, and said the committee acknowledged its potential impact in improving fiscal revenue and reserve accretion. For monetary policy, the relevance is not the politics of the order but the mechanics. If more oil and gas revenue predictably flows through the federation account, fiscal planning can improve, and external buffers can strengthen, particularly if inflows support reserves and reduce pressure for deficit monetisation. However, the same story carries a risk. Higher inflows can also encourage higher spending if fiscal discipline is weak, and the MPC already warned that fiscal releases, including election-related spending, could push inflation up.

Cardoso also laid out a list of risks that can disrupt the external stability underpinning the rate cut. He cited the possibility of global shocks, uncertainties around oil prices, and the effect of pre-election spending if not contained.

The CBN governor further noted that banking sector indicators remained within regulatory thresholds and described the sector as resilient. He noted progress in recapitalisation, stating that 20 banks had fully met the new minimum capital requirements and that a further 13 were at advanced stages of their capital raising processes, which he said were expected to conclude within the stipulated time. He also noted that banks raised N4.05tn in verified and approved capital ahead of the 31 March 2026, recapitalisation deadline set by the CBN. The PUNCH observed that this figure was nearly double the N2.4 tn reportedly raised as of April 2025. Cardoso said N2.90tn of the amount, representing 71.6 per cent, was mobilised domestically, while N1.15tn, equivalent to 28.33 per cent, came from foreign participation.

“In summary, 71.67 per cent is domestic mobilisation and 28.33 per cent is foreign participation. This balance, in my view, represents a mix of domestic and foreign, which signals broad investor engagement and confidence in the sector,” Cardoso said.

The CBN governor also had to address stability risks tied to institutions under intervention. Cardoso said depositor funds in those institutions remain secure and that operations continue under close supervisory and regulatory oversight. He said this to prevent recapitalisation anxieties from turning into deposit flight or market rumours, both of which can disrupt the transmission of monetary policy.

A further stability issue is the payments and fintech ecosystem. The governor said the CBN recognised the importance of innovation but would ensure that risks to financial stability were properly managed. “We are advancing work already on a very comprehensive framework for digital assets,” Cardoso said, noting that the process would involve consultation and scrutiny to ensure transparency and long-term resilience. He disclosed that there are over 430 licensed fintech operators in Nigeria and described the segment as systemically important, adding that the CBN was strengthening supervisory oversight to address cyber threats and other emerging risks.

Likely impact of rate cut on Nigeria’s economy

In a statement, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, welcomed the CBN’s decision to cut the MPR by 50 basis points to 26.5 per cent, describing it as a signal of growing confidence in the nation’s economic stabilisation. He noted that the decision reflects “strong coordination between fiscal and monetary authorities as the country transitions from stabilisation to economic consolidation”.

Edun explained that the rate cut provides the government with “fiscal space to accelerate investment in infrastructure, energy, agriculture and social services”. He added, “For businesses, it improves access to credit, supports private sector investment, and strengthens job creation in the real economy.”

The Director-General of the Nigeria Employers’ Consultative Association, Adewale Oyerinde, earlier told The PUNCH that the marginal cut indicated that monetary authorities were responding to sustained pressures facing businesses.

“The marginal reduction in the benchmark interest rate represents a cautious but noteworthy signal that monetary authorities are beginning to respond to the sustained pressures facing businesses and the productive sector,” Oyerinde said. He added, “While the 50 basis point reduction may not immediately translate into significantly lower lending rates, it reflects a gradual shift toward supporting economic growth without undermining price stability.”

Oyerinde stressed that the overall policy stance remained tight due to the retention of the Cash Reserve Ratio at 45 per cent for commercial banks and other liquidity controls. “With a substantial portion of bank deposits still sterilised, the capacity of financial institutions to expand credit to the real sector may remain constrained in the near term,” he said.

In a policy brief shared with The PUNCH, the Director of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, described the rate cut as growth-supportive but warned that weak policy transmission and fiscal vulnerabilities could blunt its impact. “This policy direction is appropriate and growth-supportive. It reflects improving macroeconomic fundamentals and reinforces confidence in the economy’s stabilisation trajectory,” Yusuf said. He cautioned that lending rates might remain elevated due to structural constraints, stressing, “Unless these structural rigidities are addressed, the benefits of monetary easing may not fully translate into lower borrowing costs for manufacturers, SMEs, agriculture, and other productive sectors.”

Yusuf added that fiscal consolidation remained the missing anchor. “Without fiscal consolidation, monetary easing could be undermined by continued fiscal pressures and crowding-out effects in the financial system,” he said.

Looking ahead, Cardoso said the outlook suggests that “the current momentum of domestic disinflation will continue in the near term”, supported by exchange rate stability and improved food supply. However, he warned that “increased fiscal releases, including election-related spending, could pose upside risk to the outlook.” He reaffirmed the MPC’s commitment to “an evidence-based policy framework, firmly anchored on the Bank’s core mandate of ensuring price stability, while safeguarding the soundness and resilience of the financial system.”

The Nigerian Exchange Limited experienced a bearish turn in the final week of February, with key market indicators closing in the red amidst a significant drop in trading turnover.

According to the weekly market data, the NGX All-Share Index depreciated 1.11 per cent, closing the week at 192,826.78 points, while Market Capitalisation shed approximately 1.12 per cent to settle at N123.763tn.

Investor activity cooled significantly compared to the previous week. A total turnover of 5.494 billion shares worth N196.709bn was traded in 370,233 deals, a notable contrast to the 7.662 billion shares valued at N252.566bn that exchanged hands the prior week.

The Financial Services Industry maintained its dominance, leading the activity chart with 3.241 billion shares valued at N82.775 bn. This sector alone contributed 58.99 per cent to the total equity turnover volume. The Oil and Gas Industry followed in a distant second, while the Services Industry took the third spot.

Trading in the top three equities, Japaul Gold and Ventures Plc, Fortis Global Insurance Plc, and Zenith Bank Plc, accounted for 1.576 billion shares worth N33.46 bn, representing 28.68 per cent of the total turnover volume.

During the week, 32 equities appreciated less than 71 equities did in the previous week. Sixty-nine equities depreciated, higher than 41 equities in the previous week, while 47 equities remained unchanged, higher than the 36 recorded in the previous week.

Despite the general market dip, Fortis Global Insurance Plc emerged as the top gainer, with its share price leaping 56.67 per cent to close at N0.94. Other significant gainers included Okomu Oil Palm Plc (+20.92 per cent) and Infinity Trust Mortgage Bank Plc (+20.63 per cent). On the losing side, Associated Bus Company Plc led the decliners, shedding 25.00 per cent of its value.

A major highlight of the week was the regulatory intervention by the Exchange. Effective Monday, 23 February 2026, the NGX announced the suspension of trading in the shares of Zichis Agro-Allied Industries Plc. The move was made pursuant to Rule 7.0 of the Rulebook of the Exchange, which empowers the NGX to halt trading in the interest of the investing public.

In announcing the suspension of Zichis Agro-Allied, the NGX RegCo stated, “Trading License Holders and the investing public are hereby notified that pursuant to the provisions of Rule 7.0, Rules on Suspension of Trading in Listed Securities, Rulebook of The Exchange (Issuers’ Rules), which states that notwithstanding any of the foregoing provisions, The Exchange may, in accordance with any of its rules, place the trading of any security on suspension.” It may also do so if it is of the view that such suspension will be in the interest of the investing public and in accordance with the SEC rules. The shares of Zichis Agro-Allied Industries Plc (Zichis or the company) have been suspended from trading on the facilities of Nigerian Exchange Limited, effective today, Monday, 23 February 2026.

“The suspension of trading in Zichi’s shares shall be lifted upon the conclusion of an investigation into the trading activities of the company’s shares.”

The Nigeria Customs Service has announced that its Advance Ruling Account grew from 60 in December 2024 to 173 in December 2025, adding that the initiative accounted for 2.9 per cent of total revenue from goods valued at N240.8bn in 2025.

The National Public Relations Officer of the service, Abdullahi Maiwada, a Deputy Controller of Customs, announced this in a statement on Sunday. According to the statement, Maiwada presented the figures while delivering a paper at the 17th Session of the Capacity Building Committee of the World Customs Organisation held at its headquarters in Brussels last week.

The paper was titled, “Communicating the Results of Capacity-Building Initiatives More Effectively: Nigeria Customs Service Experience and Lessons Learned.”

In his address to delegates from member administrations, Maiwada explained that the NCS, under the leadership of the Comptroller General of Customs, Adewale Adeniyi, who also serves as the Chairperson of the WCO Council, has deliberately transitioned from routine activity reporting to evidence-based storytelling that clearly demonstrates reform outcomes and measurable impact

On the Advance Ruling programme, Maiwada disclosed that, “83 Advance Rulings were issued in 2025, while registered accounts grew from 60 in December 2024 to 173 in December 2025, reflecting a 188.3 per cent increase in stakeholder participation. The initiative accounted for 2.9 per cent of total revenue from goods valued at N240.8bn in 2025, reinforcing the role of structured communication in promoting predictability and voluntary compliance.”

According to him, the service’s reform communication framework is structured around three core pillars: institutional capacity building, human resource development, and stakeholder capacity engagement, ensuring that reforms are not only implemented but clearly understood and trusted.

Using the Time Release Study as a case study, Maiwada highlighted how the service adopted transparent data presentation tools, including infographics, to demonstrate that a significant proportion of cargo clearance delays were attributable to systemic idle time rather than inspection procedures.

“This approach shifted the narrative from defensive explanations to performance benchmarking, strengthening shared accountability across the trade ecosystem,” he said.

Highlighting progress under the Authorised Economic Operator Programme, he revealed that about 120 companies have received full AEO certification. “Additionally, 3,270 officers were trained nationwide as AEO champions to sustain implementation and deepen stakeholder engagement,” Maiwada stressed.

He referenced the deployment of the indigenous Unified Customs Management System, called B’Odogwu, as a milestone in digital transformation, supported by continuous sensitisation and user engagement.

The NCS’s image maker further highlighted the Customs Integrity Perception Survey as a data-driven tool for strengthening accountability and public trust, noting that integrity management within the service is now measurable and continuously assessed.

Maiwada further encouraged WCO member administrations to integrate communication units at the design stage of reform initiatives, humanise institutional processes, sustain engagement beyond single events, and strengthen peer learning across Customs administrations.

The Advance Ruling initiative is a trade facilitation mechanism introduced by the NCS. It allows importers, exporters, customs brokers, and other qualified operators to request a written, binding decision from Customs on key aspects of a goods transaction before the goods are imported or exported. These decisions cover issues such as tariff classification, valuation, origin, and certain duty exemptions — giving traders clarity and certainty on customs treatment in advance.

About 14.66 per cent of Nigeria’s crude oil production in 2025 was likely committed to servicing crude-backed loan facilities, based on estimates derived from disclosures in the Nigerian National Petroleum Company Limited’s 2024 financial statements and official production data.

An analysis by The PUNCH shows that four major crude-secured arrangements — Project Gazelle, Project Yield, Project Leopard, and Eagle Export Funding — are backed by a combined 213,000 barrels of crude oil per day.

If this allocation remained unchanged throughout 2025, the total volume committed to debt servicing would amount to 77.75 million barrels for the year, calculated by multiplying 213,000 barrels per day by 365 days.

Data from the Nigerian Upstream Petroleum Regulatory Commission indicate that Nigeria produced 530.41 million barrels of crude oil between January and December 2025.

The 77.75 million barrels tied to crude-for-loan arrangements therefore represent 14.66 per cent of total annual production. Using the 2025 average Bonny Light price of $72.08 per barrel, the 77.75 million barrels translate to about $5.60bn.

Converted at the official exchange rate of N1,492 to the dollar, the crude potentially deployed to service the loans is valued at approximately N8.36tn. This implies that out of the estimated gross crude oil earnings for 2025, a sizeable portion of output by volume was effectively earmarked for debt servicing before revenues could fully accrue to government coffers.

The obligations span multiple forward-sale and project-financing arrangements expected to be serviced through substantial crude oil and gas deliveries. These commitments have become a central pillar of NNPC’s funding framework following years of fiscal strain, volatile production, and declining upstream investment.

Several of the facilities were used to refinance legacy debts, fund refinery rehabilitation, support cash flow, and meet government revenue obligations.

One of the major exposures is linked to the Eagle Export Funding arrangement. Although the 2024 financial statement notes that “at least 1.8 million barrels” must be delivered per cycle, earlier reporting by The PUNCH indicates that the facility comprises three separate loan tranches.

The first, a $935m loan secured in 2020 and backed by 30,000 barrels per day, was fully repaid by September 2023. A second tranche of $635m was also cleared within the same period. The only outstanding portion is the Project Eagle Export Funding Subsequent 2 Debt, a $900m facility obtained in 2023 and secured against 21,000 barrels per day.

Repayment was scheduled to commence in June 2024, with final maturity expected in 2028. As of December 2024, the outstanding balance stood at N1.1tn, making Eagle one of the company’s significant forward-sale exposures.

“The company had capital commitments of N1.1tn as at the year ended 31 December 2024 (31 December 2023: N1.2tn). This relates to the forward sale agreement with Eagle Export Funding Limited for the delivery of Crude Oil.

“Under the contract, Eagle Export Funding Limited will make an upfront payment to NEPL for crude in a Forward Sale Agreement. The payment received is required to be settled with the delivery of crude oil volumes, i.e., NEPL sells crude to Eagle Export Funding Limited based on a delivery schedule.

“Based on the agreement, at least 1,800,000 barrels of Crude oil must be nominated and scheduled by NEPL (and delivered at the relevant delivery terminal to Eagle Export Limited in every delivery period commencing on 28 August 2020,” the NNPC financial statement read.

Another significant obligation arises from the incremental gas-supply financing arrangement with Nigeria LNG Limited. Under the agreement, NLNG provided upfront funding of N772bn for gas supplies to be delivered over time.

By the end of 2024, gas worth N535bn had been drawn and N312bn recovered by NLNG, leaving N460bn yet to be supplied. A financing charge of N12bn also accrued during the period, bringing the total outstanding balance to N472bn.

The refinery rehabilitation programme accounts for some of the largest crude-secured debt commitments. Project Yield, the financing structure backing the Port Harcourt Refinery upgrade, had an outstanding drawdown of N1.4tn at the close of 2024.

The agreement requires NNPC to deliver refined-product-equivalent volumes of 67,000 barrels per day, with repayment scheduled to begin in June 2025 after a two-and-a-half-year moratorium.

“This is a 7-year N1.5tn PxF loan obtained in October 2022 for general corporate purposes with the ultimate use being the execution of the EPC Contract between PHRC and Tecnimont for the rehabilitation of Port Harcourt Refinery.

“It is secured with a forward sale of refined product equivalent of 67kbpd of crude oil. As of 31 December 2024, the amount drawn is N1.4tn with principal repayment to commence in June 2025 after a moratorium period of two years and 6 months. Therefore, loan commitment as of 31 December 2024 is N1.4tn,” the financial statement read.

Similarly, Project Leopard, another crude-backed forward-sale facility, carried an outstanding balance of N1.3tn. The five-year financing agreement commits the company to deliver 35,000 barrels of crude oil per day, with repayments expected to begin in mid-2025 after a six-month moratorium.

The largest exposure relates to Project Gazelle, a substantial crude-for-cash arrangement used to finance advance tax and royalty payments on Production Sharing Contract assets.

NNPC had drawn N4.9tn out of the total N5.1tn facility by December 2024. Crude valued at N991bn had been delivered, leaving an outstanding N3.8tn. The agreement requires sustained deliveries of 90,000 barrels per day until the liability is fully extinguished.

Taken together, the company’s major crude-for-loan facilities — Eagle Export Funding (21,000 bpd), Project Yield (67,000 bpd), Project Leopard (35,000 bpd) and Project Gazelle (90,000 bpd) — represent a combined commitment of 213,000 barrels per day, in addition to separate gas-delivery obligations under the NLNG arrangement.

Although the N8.36tn estimate reflects the gross market value of crude tied to loan servicing, actual fiscal receipts depend on pricing formulas, lifting schedules, repayment structures and other contractual terms.

The PUNCH earlier reported that Nigeria earned an average of N55.5tn from crude oil sales in 2025, compared to N50.88tn in 2024. NUPRC data show that Nigeria produced 530.41 million barrels of crude oil between January and December 2025, with output fluctuating during the year amid outages, operational disruptions and gradual recovery in some fields.

Industry analysts noted that the revenue figure represents gross earnings and does not account for production costs, joint venture cash calls, production-sharing contract cost recovery, oil theft, domestic supply obligations, or deferred liftings.

Nonetheless, the analysis highlights the scale of crude inflows generated during the year and underscores the importance of output stability and price performance to Nigeria’s oil-dependent economy.

The Nigerian Upstream Petroleum Regulatory Commission has presided over the formal handover of the OLO Oilfield Host Community Development Trust from TotalEnergies to Aradel Holdings, in what officials described as a major milestone in the implementation of the Petroleum Industry Act and the protection of host community interests during operator transitions.

The ceremony, held at the commission’s headquarters in Abuja, brought together senior officials of the regulator, executives of both companies, and representatives of the OLO host communities to formally complete the transfer of settlor responsibilities under the trust.

A statement issued by the NUPRC Head, Media and Strategic Communication, Eniola Akinkuotu, on Friday said the move is expected to ensure continuity in community development programmes despite the change in operator of the Olo/Olo West marginal field.

The OLO Host Community Development Trust was established in line with the provisions of the Petroleum Industry Act, which mandates operators to contribute three per cent of their previous year’s operating expenditure to support sustainable development in host communities.

Between 2023 and 2025, the trust has enabled the completion of more than 100 projects covering water supply, electricity, road construction, education, and healthcare. About 40 additional projects are currently ongoing, with over 25,000 residents across the host communities said to have benefited directly from the interventions.

TotalEnergies previously operated the Olo/Olo West marginal field within the former OML 58 in the Eastern Niger Delta before its acquisition by Aradel Holdings, making the transfer of responsibilities under the trust a statutory and operational requirement.

The oil major confirmed that all obligations up to the date of transfer had been fully met and that there were no outstanding liabilities. Aradel has now formally assumed full responsibility following the Commission’s regulatory consent.

Speaking at the ceremony, the Commission Chief Executive of the NUPRC, Oritsemeyiwa Eyesan, who was represented by the Executive Commissioner, Health, Safety, Environment and Community, Capt John Tonlagha, said the transition demonstrates the effectiveness of the PIA framework in safeguarding host community interests.

He said the trust’s structure and governance have been preserved, ensuring that ongoing projects will continue without disruption.

“The Olo Oilfield Host Community Development Trust remains intact. Its governance structure has been preserved, and its statutory funding obligations are transitioning seamlessly to the new settlor, exactly as envisioned by the Petroleum Industry Act,” Tonlagha said.

He added, “The commission will continue to provide firm and consistent oversight to ensure full compliance with the provisions of the Act for the benefit of both the host communities and the industry. This is a critical component of building trust and stability in Nigeria’s upstream sector.”

In his remarks, the General Manager, Community Affairs, Projects and Development at TotalEnergies, Dornu Kogam, urged the new operator to sustain the transparent and inclusive engagement model that had guided the implementation of projects.

“We encourage Aradel Holdings to maintain the same transparent, community-centred approach. The success recorded so far is the result of sustained dialogue, mutual respect, and shared development goals,” he said.

Responding, the Community Affairs Manager of Aradel Holdings, Blessyn Okpowo, assured stakeholders of the company’s commitment to fulfilling its obligations and sustaining the development momentum.

“We want to assure the host communities and the Commission that, in line with the Petroleum Industry Act, we will honour all commitments and duties required of the settlor. We also intend to work very smoothly and continue the engagement model established by TotalEnergies,” he said.

The Chairman of the Board of Trustees of the OLO Host Community Development Trust, Wale Godwin, commended the progress recorded so far, noting that 118 projects had already been delivered out of 160 planned.

He also praised the regulator’s oversight role, particularly its approval of the Community Development Plan before the commencement of projects.

“We appreciate the commission for ensuring proper regulatory guidance and approval processes. This has strengthened transparency and confidence among stakeholders and ensured that projects are aligned with the real needs of the communities,” he said.

The host community framework under the Petroleum Industry Act is widely regarded as one of the most significant reforms in Nigeria’s oil and gas sector. It was introduced to address longstanding grievances in oil-producing communities over environmental degradation, poverty, and perceived neglect despite decades of resource extraction.

Under the law, operators are required to set up Host Community Development Trusts and contribute three per cent of their annual operating expenditure to fund sustainable development initiatives.

This model is designed to reduce conflicts, curb pipeline vandalism, and promote stability in the Niger Delta by ensuring that communities derive measurable benefits from oil operations.

The successful transition of the OLO trust signals growing confidence in the new regulatory regime and highlights the importance of continuity and accountability in community development amid asset divestments and acquisitions across Nigeria’s upstream sector.

MTN Nigeria said it invested N1tn in 2025 to expand fibre infrastructure, roll out additional base stations and strengthen network capacity nationwide, as the country’s biggest telco returned to profitability after a choking financial year marked by foreign exchange pressures and negative equity.

The capital expenditure, more than double the prior year’s spending, formed part of a broader recovery that saw the company post a profit after tax of N1.1tn for the year ended December 31, 2025. The rebound followed a difficult 2024 in which MTN suspended dividend payments and grappled with balance sheet strain.

Chief Executive Officer Dr Karl Toriola described 2025 as a defining year for the company, linking the improved earnings position to renewed long-term infrastructure investment.

“During the year, we invested N1tn in network expansion and modernisation, more than double the prior year’s capital expenditure. This investment translates to additional base stations, deeper fibre rollout, expanded capacity and improved network resilience across the country because sustaining critical digital infrastructure requires disciplined capital allocation and a deliberate long-term approach,” the executive said.

The telcos’ total subscriber base increased to 87.3 million, up 7.9 per cent, while active data subscribers rose to 53.2 million. Data traffic grew by 34 per cent during the year. These figures reflect sustained demand for digital services across the country and underscore the need for continued investment in network capacity and resilience.

“We are mindful that in a period of economic pressure, expectations from customers are heightened. When Nigerians purchase data or rely on our network for work, education, financial services or daily communication, they expect reliability, fairness and continuous improvement. That expectation is both legitimate and central to our responsibility, Toriola noted.

MTN’s service revenue rose 55.1 per cent to N5.2tn in 2025, while earnings before interest, tax, depreciation and amortisation more than doubled to N2.7tn. Earnings per share improved to N53.07 from a negative N19.05 a year earlier, reflecting the sharp turnaround in operational performance.

Chief Financial Officer Modupe Kadiri said the company’s financial recovery was built on deliberate balance sheet repair, disciplined capital allocation and reduced foreign exchange exposure.

“A year ago, MTN Nigeria was in negative equity. Today, we are declaring a N20 total dividend for the 2025 financial year,” Kadiri stated.

The board approved a final dividend of N15 per share, subject to shareholder approval at the annual general meeting, bringing the total dividend for the year to N20 per share, including an interim dividend of N5 already paid in the fourth quarter.

According to its report, MTN generated N1.2tn in free cash flow during the year and rebuilt shareholders’ equity to N548.7bn, with retained earnings standing at N400.4bn at year-end, signalling restored financial stability after the previous year’s market volatility.

Toriola said profitability would continue to underpin infrastructure expansion, noting that profit enables sustained reinvestment in network quality and broader coverage rather than serving as an end in itself.

“Profit, in our context, is not an end in itself. It is the mechanism that enables continued investment in network quality, broader coverage and enhanced customer experience. As Nigeria’s digital ecosystem continues to expand across fintech, small businesses, education and public services, resilient and future-ready telecommunications infrastructure remains foundational to national development,” he added.

The Manufacturers Association of Nigeria has found that maintenance lapses account for between 10 and 15 per cent of energy waste in factories, while most facilities lack sub-metering systems needed to track consumption.

The findings emerged from a Cleaner Production Assessment conducted in 42 industries across four geopolitical zones and presented at the National Stakeholders’ Sensitisation Workshop on ISO 50001 and 14001 standards in Lagos on Tuesday.

The assessment, carried out under the GEF-UNIDO Industrial Energy Efficiency and Resource Efficiency Cleaner Production Project, covered sectors including food and beverages, basic metals, wood and wood products, textiles and leather, and petrochemicals.

Presenting the technical findings, IEE and RECP National Expert Obafemi Adejumo said the study exposed a wide gap between current practices and global best standards. He noted that the study uncovered significant industrial energy efficiency gaps across the country.

“What I have noticed is that there is a big gap between where we should be and where we are at the moment. Not all parts of the industry are doing well with energy efficiency. Some industries are already doing well, but a lot of other industries have not really plugged into it”, Adejumo said.

The CPA identified compressed air systems as a major source of electricity waste, accounting for about 25 per cent of losses, largely due to leaks and improper use. In some plants, optimising the system enabled operators to shut down one compressor entirely.

Steam systems accounted for 30 per cent of losses, while lighting contributed 18 per cent. The assessment also found significant thermal losses from poor insulation and flue gases in boilers and furnaces, inefficient motor systems running at partial loads, and a lack of Variable Speed Drives.

The report highlighted that most facilities lack sub-metering, making it difficult to manage energy use effectively.

“Data gaps are a serious issue. Most facilities lack sub-metering, making it difficult to manage what isn’t measured,” the assessment noted.

The study also found that idle equipment in textile and leather factories and a weak maintenance culture contributed to avoidable losses of up to 15 per cent.

The assessment revealed that grid unreliability in Kano and Anambra amplified energy losses, while thermal inefficiencies were more pronounced in the basic metal and petrochemical sectors.

However, it recorded successes in the food and beverage sector, where a Lagos-based plant reduced compressed air leaks by 20 per cent after optimisation.

Overall, the CPA estimated that industries could achieve between 20 and 25 per cent energy reduction, translating to about 500 megawatt-hours of savings per plant annually, if integrated industrial energy-efficiency measures were implemented.

The association urged manufacturers to adopt ISO 50001 and ISO 14001 standards to institutionalise energy management and cleaner production.

National Project Coordinator, GEF-UNIDO IEE/RECP Project, Jacob Oladipo, said ISO 50001 focuses on energy efficiency, while ISO 14001 addresses resource efficiency and cleaner production.

“Today, we are looking at feedback from the exercise conducted under this project, mainly the exposure of the project components to ISO standards 50001 and 14001. The 50001 has to do with energy efficiency, while the 14001 has to do with resource efficiency and cleaner production,” Oladipo said.

He said the CPA exposed poor water management practices across industries, stating, “We discovered that industries extract their water from boreholes and attach no importance to the usage of water. They use fresh water and discard it without knowing the volume used per day. If you are producing and you don’t know the volume of water you are using, how will you know the volume of water that you are wasting?”

He added that recycling water reduces overall consumption and improves resource efficiency. “One of the cardinal principles of resource efficiency is that you produce with less waste. If you recycle your water, it reduces the amount of water you use at the end of the day because water is not going out into the drain,” he said.

Adejumo stressed that awareness and top management commitment remain critical to closing the efficiency gap.

“One thing that will be needful is that the top management in the industry needs to be equipped with the right knowledge of this concept. If the top management doesn’t buy into it, the ordinary facility manager will not be able to do it”, Adejumo said.

He explained that the campaign’s core message rests on cost savings and competitiveness. “If you can reduce energy consumption, then your cost of production will be reduced. When you save energy costs in your facility, you boost the sustainability of your organisation and make it competitive,” Adejumo said.

He warned that inefficiencies also increase carbon emissions, stating, “If you burn more fuel because of inefficiencies, then you have more emissions into the atmosphere. We must work on that on a national scale.”

Meanwhile, the Chief Executive Officer of Spectra Industries Ltd, Duro Kuteyi, said the initiative exposed hidden financial leakages in factories.

“The IEE and RECP initiative is an innovative system that shows industrialists where they are losing money, and now they can prevent it,” Kuteyi said.

He said factories could recover waste heat from generators and commercialise waste streams. “Even in the use of a generator, the heat coming from the generator can be converted to do other things in the factory. From the waste generated, we had already put energy into that waste, so it should not be trashed. The waste should be commercialised to compensate for part of the energy used”, Kuteyi said.

He urged industrial leaders to personally undergo ISO training. “It is better for the industrialist himself to understand this so that he can pass it down. Everybody stands to benefit if he wants to”, he said.

In his welcome address, the Director-General of MAN, Segun Ajayi-Kadir, represented by National Technical Coordinator Dr Oluwasegun Osidipe, described the project as a defining moment for the sector.

“The implementation of the GEF-UNIDO Industrial Energy Efficiency, Resource Efficiency and Cleaner Production Project marks a defining moment in our collective journey towards sustainability,” Ajayi-Kadir said.

He asserted that manufacturers must champion sustainable practices to enhance competitiveness and resilience, stating, “As we embrace the principles of energy efficiency, we will not only be reducing our carbon footprint but also saving on energy costs. In return, the efficiency, competitiveness and resilience of operations will be enhanced to meet the increasing demand of our global marketplace.”

He urged policymakers to create an enabling environment that supports energy management systems and cleaner production, adding that Nigeria can safeguard its environment and foster sustained economic growth by optimising resource use and investing in energy-efficient technologies.