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Nigeria requires a comprehensive monetary policy approach -says Presidency

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.By Philippine Duru

philippineobetoduru@gmail.com

08034905774

 

 

Presidential Economic Adviser, Tope Fasua, has called for a comprehensive review of Nigeria’s monetary policy framework, warning that the sustained high-interest-rate environment is constraining the growth of micro, small and medium-sized enterprises (MSMEs), limiting investment, and slowing job creation.

 

Fasua stated that Nigeria requires a monetary policy approach that reflects the realities of its economy, rather than relying predominantly on aggressive interest-rate increases to curb inflation. He noted that while price stability remains a critical objective, monetary policy must also support business expansion, industrial development, and inclusive economic growth.

 

He argued that the prevailing high-interest-rate regime has significantly raised the cost of borrowing, making it increasingly difficult for businesses—particularly MSMEs—to access affordable credit needed to expand operations, invest in equipment, and create employment opportunities.

 

The presidential adviser emphasised that MSMEs form the backbone of Nigeria’s economy, accounting for the vast majority of businesses and providing millions of jobs across various sectors. He stressed that this strategic role necessitates greater consideration of the sector’s financing needs in monetary policy formulation.

 

According to Fasua, while monetary tightening can be an effective tool for managing inflation, persistently high lending rates may also suppress private sector investment and weaken overall economic activity when maintained over extended periods.

 

He therefore advocated a more balanced monetary policy framework that simultaneously supports sustainable economic growth and maintains price stability. Such an approach, he said, should reflect Nigeria’s unique economic structure, including its large informal sector, the financing constraints faced by small businesses, and broader national development priorities.

 

Fasua urged monetary authorities to adopt policies that better balance inflation control with the need to create an enabling environment for businesses to thrive, noting that elevated borrowing costs have become a significant barrier to entrepreneurship and productivity.

 

His remarks come at a time when many Nigerian businesses continue to face significant operational challenges, despite indications of easing inflationary pressures. Manufacturers, traders, and service providers have consistently identified high lending rates as a major constraint to expanding production, increasing capacity, and improving competitiveness.

 

Business groups have also maintained that while tight monetary policy may help contain inflation, prolonged high interest rates can discourage investment, reduce consumer spending, and slow economic growth—particularly in an environment where access to affordable financing remains limited.

 

The comments are expected to intensify ongoing discussions among policymakers, economists, and private sector stakeholders on the appropriate balance between inflation control and economic growth stimulation.

 

The debate has gained renewed relevance as Nigeria seeks to strengthen its private sector, attract greater domestic and foreign investment, diversify its economy beyond oil, and generate employment through expanded industrialisation and enterprise development.

 

Analysts note that any future adjustment to the country’s monetary policy framework will require a careful balancing act—ensuring inflation remains under control while guaranteeing that businesses have adequate access to affordable financing to drive productivity, innovation, and long-term economic growth.

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Business

North African Airline incurs Nigeria’s wrath

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By Philippine Duru

philippineobetoduru@gmail.com

08034905774

 

 

Nigeria has warned EgyptAir to modernise the aircraft deployed on its Nigerian routes, stressing that continued use of ageing planes could affect the airline’s operations in the country.

The Minister of Aviation and Aerospace Development, Festus Keyamo, gave the warning during a bilateral meeting with his Egyptian counterpart, Sameh El-Hefny, on the sidelines of the ongoing El-Alamein International Airshow (EIAS 2026) in Egypt.

According to a statement issued by Keyamo’s media aide, Tunde Moshood, the meeting focused on improving air connectivity between Nigeria and Egypt and strengthening cooperation between the two countries’ civil aviation authorities.

The discussions also covered the expansion of technical and professional capacity, as well as opportunities for greater collaboration among airlines, airports, regulators and other aviation stakeholders.

Keyamo specifically urged EgyptAir to deploy newer-generation aircraft on its Nigerian routes, rather than continuing with what Nigeria considers ageing aircraft.

“The minister also used the engagement to emphasise the need for a stronger and more modern fleet deployment by EgyptAir on its Nigerian routes,” Moshood said.

He said Keyamo urged the airline’s management to move away from the continued deployment of ageing aircraft and prioritise newer-generation aircraft in the Nigerian market.

According to the minister, fleet modernisation was essential to improving passenger experience, operational efficiency and the airline’s competitiveness.

Keyamo further stressed the strategic importance of Nigeria-Egypt aviation relations, noting that both countries occupy important positions within Africa’s aviation ecosystem.

He reaffirmed Nigeria’s commitment to expanding strategic international partnerships to improve air connectivity, promote tourism and trade, support airline growth and deliver greater value to passengers and the aviation industry.

The Nigerian delegation also expressed the country’s readiness to work with Egypt’s Ministry of Civil Aviation to identify areas of mutual cooperation, particularly within the framework of the Single African Air Transport Market (SAATM).

Responding, El-Hefny welcomed the engagement and reaffirmed Egypt’s commitment to deepening aviation cooperation with Nigeria.

He called for closer collaboration between the two countries to advance air transport development and strengthen links between their aviation industries.

The Egyptian minister also advocated stronger institutional cooperation between the African Civil Aviation Commission (AFCAC) and the League of Arab Civil Aviation (LACA).

“Enhanced collaboration between the two regional aviation bodies could promote stronger partnerships and facilitate greater cooperation among African and Arab States,” El-Hefny said.

The meeting ended with both ministers reaffirming their commitment to sustained dialogue, stronger institutional cooperation and initiatives aimed at delivering tangible benefits to the aviation sectors of Nigeria and Egypt.

 

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₦10m monthly made from akara and bread business -Umo Eno

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Philippine Duru

philippineobetoduru@gmail.com

08034905774

 

 

 

Akwa Ibom State Governor, Umo Eno, has recounted his early experience in entrepreneurship, revealing that he once made not less than ₦10 million in a month from selling akara and bread.

Eno, who spoke while reflecting on his journey before entering public service, said the business experience played an important role in shaping his understanding of enterprise, hard work and wealth creation.

According to the governor, he started from a modest venture involving the sale of akara and bread before gradually expanding his business activities.

“I started selling akara and bread. I made not less than ₦10m in a month,” Eno said.

The governor’s account highlights the entrepreneurial path he pursued before rising through the ranks in business and eventually becoming governor of Akwa Ibom State.

Eno has frequently emphasised the importance of entrepreneurship and economic empowerment, particularly as a means of creating opportunities for young people and reducing dependence on government employment.

His recollection of the akara and bread business also underscored his view that small businesses, when properly managed and supported, can grow into significant sources of income and employment.

The governor’s comments come amid growing conversations around entrepreneurship, youth empowerment and the need to create sustainable livelihoods in Nigeria, where many young people are turning to small and medium-scale enterprises to earn a living.

Eno has continued to advocate policies and initiatives aimed at expanding economic opportunities and encouraging residents to become self-reliant through productive ventures.

His story of moving from selling akara and bread to occupying the highest political office in Akwa Ibom has also been presented as an example of how entrepreneurship, persistence and business experience can shape an individual’s journey to leadership.

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Business

All share index gains about 0.81% as NGX rebounds

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The Nigerian Exchange Limited (NGX) rebounded last week, with the All-Share Index (ASI) gaining about 0.81 per cent to close at 241,298.47 points, as renewed investor interest in oil and gas and banking stocks lifted market sentiment.

 

The week’s gain translated into an estimated ₦1.29 trillion increase in market capitalisation, pushing the value of listed equities to about ₦155.83 trillion.

 

With the latest appreciation, the NGX’s year-to-date return remained strong at approximately 55 per cent, underscoring the market’s substantial gains despite intermittent periods of profit-taking and volatility.

 

The recovery was largely driven by buying interest in oil and gas and banking stocks, with Seplat Energy among the notable gainers during the week.

 

Market sentiment also received a boost from developments in Nigeria’s international financial-market standing. FTSE Russell confirmed the country’s reclassification to Frontier Market status, effective September 21, 2026, a move expected to influence international investor positioning toward Nigerian equities.

 

Further support came from Moody’s decision to revise Nigeria’s outlook to positive, reinforcing expectations that ongoing economic and fiscal reforms could improve the country’s credit profile.

 

Despite the positive performance, trading activity was relatively subdued, partly reflecting the shortened trading week. Market volume declined as investors adopted a more cautious approach amid prevailing economic uncertainties and profit-taking pressures.

 

Analysts said the latest rebound highlights continued investor appetite for fundamentally strong sectors, although the sustainability of the market’s upward trajectory will depend on macroeconomic conditions, corporate earnings, foreign investor participation and policy developments.

 

As investors enter a new trading week, attention is expected to remain on the performance of banking and energy stocks, while the implications of Nigeria’s forthcoming Frontier Market reclassification could further shape sentiment and capital flows into the equities market.

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