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Nigeria Needs To Do More In Economy Diversification – Gov Bagudu

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Kebbi State Governor, Atiku Bagudu
Kebbi State Governor, Atiku Bagudu
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Kebbi State Governor, Atiku Bagudu has advocated heavy investment in other sectors of the nation’s economy if the much talked about diversification of the economy from oil and gas must be a reality.

Bagudu spoke Monday at a public hearing on a bill for an Act to establish the Nigerian economic diversification council organised by the Senate Committee on National Planning and Economic Affairs.

The governor, who is a former senator said Nigeria is a blessed nation in all sense of the world and “we need to support different sectors of Nigeria, we need to support different constituents of Nigeria to do better.

“We have done well in petroleum and gas not because it is the only sector, but that is where we put in the most money. Maybe we have put, on an average basis between 1990 to 2010, which have been investing about 10 billion dollars in petroleum and gas when I say we, it is both public and private sectors”.

According to him “if you measure how much has been going into agriculture, for example, in that period, maybe, it is less than 500 million dollars.”

He said it will not be surprising that the outcome will be different, adding, “may be if we take mining, whether it is gold, which every state has something to offer, again may be we have not invested as much.

For him, “diversification has restructuring is an element of that so that we support the constituent parts whether they are states or sectors so that each can contribute more than it is contributing.

“Some of the anger we have had in the land may be result from the lack of inclusion when oil production was contaminating water bodies or in the oil producing states.

“Those who hitherto used those freshwater bodies as sources of livelihood for fisheries so those water bodies were taken over by weeds. And they also got angry and they said it doesn’t matter, you can go on producing oil but what about us.

He said late President Umaru Yar’Adua recognised that we had an amnesty programme that was restraining them and similar things are happening elsewhere that if we recognise and provide legislative backing to our diversification quest, we will be able to tell the world we are serious about diversification.

“The evidence in the last seven years had some positive traction that we can build and we can do better and quicker, adding that “it’s a collective”.

“Nigeria is a trillion dollar investment destination. Nigeria, what is our federal budget, less than 35 billion dollars? Maybe the national assembly is about to pass the 2023 budget. I’m sure it won’t be up to 40 billion dollars. What is the budget of Brazil, a country that is similar to Nigeria in terms of population, about 700 billion dollars.

“So if somebody is taking care of 220 million people with 700 billion dollars, you are taking care of 200 with less than 10 per cent of that. Isn’t it a no brainer that you will not be able to achieve as much. But we have to all come together, we have to borrow more money if that is what is required or we have to support all sectors to produce more money so that we can fund all our priorities badly.

On the forthcoming election, he thinks “we have made a statement enough in Nigeria that everyone is convinced that free, fair and transparent elections always lead to more confidence in the society, less rancour in the society.

He said the value of free, fair and transparent elections is there for all to appreciate, adding “what is important is for everyone to see what more can I do to ensure that we have a free, fair and transparent election.

“Sometimes, we are all guilty in the sense that we think it’s somebody who should solve the problem.

However, he said even transparent elections do not guarantee the best outcomes, sometimes still, democracy is based on the appeal of populist leaders, leaders who are popular at a particular time.

“We should all play a role to ensure that our processes are strengthened And they are strengthened. Today INEC is enhancing the transparency of election by better accreditation, speedy accreditation, better transmission of results in good time, security agencies are helping, above all President Buhari has committed to free, fair and transparent election even in states where our party has lost elections.

“We are a blessed nation in all senses of the word and we have to support and we need to support different constituents of Nigeria”, he concluded.

Mr. Thomson Akpabio from Nigeria Employers Consultative Association (NECA) drew the attention of the committee to section 332 which stipulates 2% tax on imported textile while it imposes 10% on locally produced one thereby serving as a disincentive to local manufacturing.

The sponsor of the bill, Sabi Abdullahi (Niger North) expressed his delight that the public hearing was well attended as stakeholders made very meaningful contributions that will enrich the legislation.

 

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Business & Economy

NERC Orders DisCos to Compensate Band A Customers for Power Supply Shortfalls

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The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (DisCos) to compensate eligible Band A customers affected by power supply shortfalls recorded between February and March 2026.

In a public notice issued on Wednesday, the commission said the special compensation scheme became necessary following significant electricity generation deficits across the Nigerian Electricity Supply Industry (NESI), which prevented some DisCos from meeting the minimum service commitments required for Band A customers.

According to NERC, the supply disruptions were largely caused by inadequate gas supply as well as vandalism of critical gas and transmission infrastructure, factors beyond the direct control of the distribution companies.

The regulator explained that Band A customers are entitled to a minimum of 20 hours of electricity supply daily. It noted that where a Band A feeder recorded an average daily supply of between 18 and 20 hours during the affected period, the existing compensation framework under Addendum No. NERC/2024/003 would continue to apply to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.

However, NERC stated that Band A feeders that received less than 18 hours of electricity supply per day between February and March 2026 would not be downgraded despite failing to meet the service threshold. Instead, customers connected to such feeders would receive special compensation.

Under the approved arrangement, Non-MD customers will receive compensation equivalent to 20 percent of the approved February 2026 energy cap applicable to their feeder. MD customers, on the other hand, will receive compensation equivalent to 20 percent of the average energy billed per MD customer in February 2026.

The commission further directed that prepaid customers should receive their compensation through electricity token credits, while postpaid customers should benefit through direct bill adjustments.

To ensure transparency, NERC instructed DisCos to clearly communicate the value and period of the compensation to affected customers. The regulator also prohibited distribution companies from using the compensation credits to offset any existing customer debts.

Reaffirming its commitment to consumer protection, NERC said it would closely monitor the implementation of the directive and verify compliance across all distribution companies to ensure that eligible customers receive the compensation due to them.

The commission added that the measure is aimed at safeguarding consumer interests while maintaining the stability and sustainability of Nigeria’s electricity market.

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Nigeria, UK Move to Close £1.2bn Trade Data Gap with Digital Customs Pact

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Nigeria and the United Kingdom have agreed to deepen customs cooperation through a new digital data-sharing framework aimed at resolving a £1.2 billion discrepancy in bilateral trade figures, a longstanding issue affecting transparency and efficiency between both economies.

The agreement was reached during a high-level meeting in London on March 18, 2026, held on the sidelines of President Bola Tinubu’s state visit under the Nigeria–UK Enhanced Trade and Investment Partnership (ETIP).

According to the Nigeria Customs Service (NCS), the talks brought together Comptroller-General Adewale Adeniyi and Ms. Megan Shaw, Head of International Customs and Border Engagement at His Majesty’s Revenue and Customs (HMRC), with discussions focused on customs modernisation, trade data transparency, and operational collaboration.

At the centre of the engagement is a significant mismatch in trade statistics. Nigeria recorded about £504 million worth of imports from the UK in 2024, while UK data shows exports to Nigeria at approximately £1.7 billion over the same period — leaving a gap of roughly £1.2 billion.

Both sides described the discrepancy as structural and agreed on coordinated measures to address it. Chief among these is the proposed implementation of a pre-arrival data exchange system, which will connect digital customs platforms in both countries to improve data accuracy, strengthen risk management, and enhance compliance monitoring.

Adeniyi emphasised that stronger customs collaboration is vital for economic growth and sustainable trade, noting that customs authorities play a key role in ensuring secure and transparent cross-border trade flows.

The meeting also highlighted advancements in customs technology, with the UK showcasing artificial intelligence-driven tools, digital verification systems, and real-time analytics designed to improve cargo processing, risk assessment, and border security.

In addition to addressing the data gap, both countries agreed on several strategic initiatives, including the development of a Customs Mutual Administrative Assistance Framework, technical cooperation on capacity building, and the establishment of a joint engagement mechanism under ETIP.

The NCS said the outcomes of the meeting would enhance operational efficiency, boost trade facilitation, and support Nigeria’s broader economic reform agenda, positioning the country for improved competitiveness in global trade.

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Nigeria’s “Shockproof” Economy: Cardoso Signals New Era of Stability to London Investors

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CBN Governor, Yemi Cardoso
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Central Bank of Nigeria (CBN) Governor Olayemi Cardoso issued a bullish assessment of the nation’s financial health yesterday, declaring that aggressive institutional reforms and disciplined monetary policy have built a “stronger capacity” to withstand global economic volatility.

Speaking at the Africa Capital Forum—held on the sidelines of President Bola Ahmed Tinubu’s state visit to the United Kingdom—Cardoso painted a picture of a Nigerian economy transitioning from a period of emergency stabilization to one of sustained investment.

A Fortress Against Volatility

The Governor’s address focused heavily on the “de-risking” of the Nigerian financial system. By emphasizing a shift toward a predictable policy framework, Cardoso aimed to reassure international stakeholders that the days of opaque, discretionary decision-making are ending.

“We are reviewing our policies with a view to developing meaningful policies and establishing a predictable policy framework to minimise discretion,” Cardoso stated, noting that consistency is the primary tool for reducing investor uncertainty.

The Governor highlighted several critical milestones achieved under the current administration’s reform agenda:

Banking Recapitalization: The CBN reported that over 30 banks have already met new capital requirements.

Notably, 28% of the newly raised funds originated from foreign investors—a metric Cardoso cited as a clear vote of international confidence.

FX Transparency: A new foreign exchange manual has been deployed, stripping away previous restrictions to boost liquidity and simplify operations for multinational businesses.

Remittance Surge: Increased diaspora remittances have bolstered foreign exchange reserves, providing a crucial buffer against external shocks.

Fiscal-Monetary Synergy: In a departure from previous friction, Cardoso noted that the inclusion of fiscal authorities on the CBN Board and the Monetary Policy Committee (MPC) has synchronized the nation’s broader economic strategy.

The Digital Frontier: “Vision for Nigeria”

Looking ahead, the Governor announced the completion of a new Payments System Vision. This initiative aims to cement Nigeria’s status as the continental leader in digital payments and cross-border transactions, specifically targeting the removal of regulatory hurdles for the nation’s burgeoning fintech sector.

 

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