Business

Boosting Development In Africa Via AfDB’s Investment Forum

Published

6 years ago

July 17, 2019

The African Development Bank (AfDB), put the financial outlay to finance Africa’s development needs at between 600 to 700 billion US dollars annually.
Of this amount, about 130-170 billion US dollars, was needed annually to address infrastructural deficit.
In order to get the needed funds to address the numerous development challenges in Africa, the AfDB launched the African Investment Forum (AIF).
The AIF is a platform to mobilise private equity funds, sovereign wealth funds and the private sector to facilitate infrastructure projects with the capacity to transform the continent.
The inaugural edition of the AIF was held in South Africa, while the second edition was also scheduled to hold in Johannesburg, South Africa, from November 11 to November 13.
Ahead of the November meeting, AfDB President, Dr Akinwumi Adesina, has appealed to investors to attend the bank’s 2019 AIF.
He spoke at Africa 50 General Shareholders meeting, held recently in Kigali, Rwanda.
Adesina said that Africa was ready for massive investments and offered an attractive investment destination.
He said that AIF, will bring together members with vested interest in Africa’s growth and development
“If you are an investor, do not miss Africa Investment Forum 2019, Africa is ready for massive investments and the environment is getting more attractive for investors.
“One such investment is the construction of the bridge that will connect the Democratic Republic of Congo and the Republic of Congo, a 550 million dollar transaction being led by Africa 50 in partnership with AfDB,” he said.
Adesina emphasised that the recently launched African Continental Free Trade Area (AfCFTA) had opened possibilities for an integrated single market for Africa.
He, however, pointed out that the continent needed to be connected through roads, rail, ports, airports, ICT backbones and energy corridors in order to enjoy the full benefits of the agreement.
Africa 50 is an innovative fund for developing and financing infrastructure in Africa, funded by AfDB, African governments, private and institutional investors.
“Africa 50 is on track to launch a private sector third party fund to leverage one billion dollar from private sector institutional investors.
“I encourage countries that have not yet joined Africa50 to do so.
“Join us as we move towards a future of great promise for Africa. Join us as we lay the foundation for a more prosperous Africa,” Adesina said.
Nigeria Country Department of AfDB, in collaboration with Africa Finance Corporation, recently organised a road show in Abuja, to sensitise stakeholders on gains of the AIF.
Ekiti governor, Dr Kayode Fayemi, who spoke at the event, emphasised the role of private capital to deliver the infrastructure required to grow Nigeria’s economy.
While expressing hope that Nigeria and other African countries would record significant investments that will boost the economy, Fayemi said that private investments are critical in providing jobs for millions of young Nigerians.
According to him, with the support of AfDB, African Finance Corporation and the quality of investors that attended the inaugural edition, the second edition would be successful.
“I am confident that if we put our best foot forward, we will receive significant funding commitment for investments across Nigeria and Africa,’’ the governor said.
Senior Bank Director, Nigeria Country Office, of AfDB, Mr Ebrima Faal, highlighted Nigeria’s prominence during the 2018 forum.
He pointed out that Nigeria was very visible and urged industry players and policy makers to maximise opportunities that the 2019 forum would provide.
Faal urged them to connect, engage and close high-impact deals.
He further recounted that last year’s edition of AIF held in South Africa recorded attendance of 2000 participants, representing 87 countries, including eight heads of government.
“Deals worth 46.9 billion dollars were discussed with 49 deals valued at 38.7 billion dollars secured.
“These figures are not just impressive for an attempt at something that has never been done on the continent, but phenomenal.
“The AfDB and its partners are excited to present you with the only platform that allows you to instantly pitch and close monumental deals on the spot.
“We encourage you to engage early and wholesomely to be part of re-writing Africa’s economic history,’’ Faal said.
According to Africa Finance Corporation Senior Director, Mr Taiwo Adeniji, “building on the success recorded in 2018, it is expected that Nigeria will be a major participant at the 2019 forum.
“The Africa Finance Corporation is keen to support Nigerian businesses across sectors to ensure effective project implementation to boost economic development.
“We are now seeing positive momentum in building transparent and durable institutions to anchor the political economy, promote and support development of the private sector.
“This is in order to increase the pace, depth and spread of economic growth in Africa,’’ Adeniji said.
On his part, a former Minister of Information and Communications, Mr Frank Nweke, identified early preparations as crucial in positioning Nigeria to meet international business and social impact investors eager to invest in Africa.
“Early preparation is also key, not only to prepare for the deals but being able to present them to a wide range of global investors.
“These investors are coming from different classes.
“We are talking about pension funds, sovereign wealth funds globally and in the continent, asset managers, commercial investment bankers so it is a wide array of investors that we are looking at.
“So we need to showcase very high transactions; we need to prepare projects and this is essential,’’ Nweke said.
Similarly, former Minister of Finance, Mrs Zainab Ahmed, urged the federal government to support the preparation.
“Ministries, Departments and Agencies (MDAs) must sit down to discuss what we expect.
“This preparation has to be done every time we are going to a forum.
“So when they go, they come into contact with investors and they will be interested in what is being presented.
“The potential investor wants to see where you are coming from, from the beginning to the end, they want to see their way through,’’ she said.
The Head, Private Sector Investment Operations, AIF/AfDB, Mr Odiogo Ezekiel, stressed that getting the projects bankable is also critical.
With the awareness raised through the road show, stakeholders say Nigeria will record more investment opportunities after the 2019 AIF.
Uwadileke writes for News Agency of Nigeria (NAN)

Ikenna Uwadileke

Business

FIRS Clarifies New Tax Laws, Debunks Levy Misconceptions

Published

11 hours ago

December 5, 2025

The Tide

The Federal Inland Revenue Service has said that Nigeria’s newly enacted tax laws are designed to strengthen economic competitiveness, attract investments, and improve long-term fiscal stability.

The agency also clarified that the much-debated four per cent development levy on imported goods is not a new or additional tax burden, but a streamlined consolidation of several existing levies.

According a statement released Wednesday, one of the most misunderstood elements of the new tax framework is the four per cent development levy with the agency explaining that the levy replaces a range of fragmented charges — such as the Tertiary Education Tax, NITDA Levy, NASENI Levy and Police Trust Fund Levy — that businesses previously paid separately.

This consolidation, it said, reduces compliance costs, eliminates unpredictability and ends the era of multiple agency-driven levies. The law also exempts small businesses and non-resident companies, offering protection to firms most vulnerable to economic shocks.

Another major clarification relates to Free Trade Zones. Earlier commentary had suggested that the government was rolling back the incentives that have attracted export-oriented investors for decades. However, the reforms maintain the tax-exempt status of FTZ enterprises and introduce clearer guidelines to preserve the purpose of the zones.

“Under the new rules, FTZ companies can sell up to 25 per cent of their output into the domestic market without losing tax exemptions. A three-year transition period has also been provided to allow firms to adjust smoothly.

“Government officials say the reforms aim to curb abuses where companies used FTZ licences to evade domestic taxes while competing within the Nigerian market”, it said.

With the new measures, Nigeria aligns with global FTZ models in places like the UAE and Malaysia, where the zones function primarily as export hubs for logistics, manufacturing and technology.

The introduction of a 15 per cent minimum Effective Tax Rate for large multinational and domestic companies has also been met with public concern. But the FIRS notes that this policy aligns with a global tax agreement endorsed by over 140 countries under the OECD/G20 framework.

Without this adoption, Nigeria risked losing revenue to other countries through the “Top-Up Tax” mechanism, where the home country of a multinational collects the difference when a host country charges below 15 per cent. By localising the rule, Nigeria ensures that tax revenue from multinational operations remains within its borders.

Business

CBN Revises Cash Withdrawal Rules January 2026, Ends Special Authorisation

Published

12 hours ago

December 5, 2025

The Tide

The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly, with effect from January 2026.

In a circular released Tuesday, December 2, 2025, and signed by the Director, Financial Policy & Regulation Department, FIRS, Dr. Rita I. Sike, the apex bank explained that previous cash policies had been introduced over the years in response to evolving circumstances.

However, with time, the need has arisen to streamline these provisions to reflect present-day realities.

The statement said the new set of cash-related policies is designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.

“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

“With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,”

“Effective January 1, 2026, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities will be limited to N5 million”, it said.

According to the statement, withdrawals above these thresholds would attract excess withdrawal fees of three percent for individuals and five percent for corporates, with the charges shared between the CBN and the financial institutions.

Daily withdrawals from Automated Teller Machines (ATMs) would be capped at N100,000 per customer, subject to a maximum of N500,000 weekly stating that these transactions would count toward the cumulative weekly withdrawal limit.

The special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly has been discontinued.

The CBN also confirmed that all currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at N100,000. Such withdrawals will also form part of the weekly withdrawal limit.

Deposit Money Banks are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments.

They must also create separate accounts to warehouse processing charges collected on excess withdrawals.

Exemptions and superseding provisions
Revenue-generating accounts of federal, state, and local governments, along with accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, are exempted from the new withdrawal limits and excess withdrawal fees.

However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.

The CBN clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.

Business

Shippers Council Vows Commitment To Security At Nigerian Ports

Published

14 hours ago

December 5, 2025

The Tide

The Nigerian Shippers Council (NSC)has restated its commitment towards ensuring security at Nigerian seaports.

Executive Secretary/Chief Executive Officer of the Council, Dr Pius Akuta, said this in Port Harcourt, while declaring open a one day workshop organized by the Nigerian Shippers Council in collaboration with the Nigerian police( Marin Division).

Theme for the workshop was ‘Facilitating Port Efficiency; The strategic Role of Maritime police “

Akuta who was represented by the Director, Regulatory Services, Nigerian Shippers Council, Mrs Margeret Ogbonnah, said the workshop was to seek areas of collaboration with security agencies at the Ports with a view to facilitating trade

Akuta said the theme of the workshop reflects the desire of the council and the Nigerian police to build capacity of police officers for better understanding and administration of their statutory roles in the Maritime environment.

He said Nigerian seaports has constantly been reputed as one of the Port with the longest cargo dwell in the world, adding,”This is so, because while it takes only six hours to clear a containerized cargo in Singapore Port, seven days in Lome Port, it takes an average of 21 days or more in Nigerian Ports” stressing that this situation which has affected the global perception index on Ease of Doing Business in Nigerian seaports must be addressed.

Akuta said NSC which is the economic regulator of the Ports has the responsibility of ensuring that efficiency is established in the Ports inorder to attract patronages.

“Pursuant to its regulatory mandate, the NSC has been collaborating with several agencies to ensure the facilitation of trade and ease of movement of cargo outside the Ports to avoid congestion”he said.

Also speaking the commissioner of police, Eastern Port Command, Port Harcourt, CP Tijani Fakai, said Maritime police has played some roles in facilitating Ports efficiency.

He listed some of the roles to include ensuring security and crime prevention at the Ports, checking of illegal fishing activities at the Ports, checking of human trafficking and drug smuggling and prevention of fire incident at the Ports.

Represented by ACP, Rufina Ukadike, the CP said police at the Ports have also helped in the decongestion and prevention of unauthorized Anchorage.

He commended the Nigerian Shippers Council for the workshop and assured of continuous collaboration.

Speaking on the dynamics of cargo handling, Deputy Controller of customs, Muhydeen Ayinla Ayoola, said the launching of electronic tracking system and dissolution of controller General Taskforce has helped to ensure efficiency at the Ports.

Ayoola who represented the custom Area Controller Port Harcourt 1 Area command, however raised concerned over rising national security threat , which according to him has affected efficiency at the Ports.

John Bibor