VFD Group Plc has announced its intention to raise up to N50bn in additional capital as part of its strategic growth initiatives.

The proposal is expected to be presented to shareholders for approval at the company’s 9th Annual General Meeting ,AGM, where several key resolutions will be tabled for consideration.

The planned capital raise, according to the notice released by the company, will be executed through a variety of instruments including rights issues, public offers, global depository receipts, commercial papers, bonds, loans, or a combination of convertible and non-convertible securities.

The capital may be raised in single or multiple tranches, series, or proportions, and may be offered either as standalone issuances or under structured programmes.

The Board of Directors will determine the terms and conditions of the capital raise, including interest or coupon rates, maturity periods, and other relevant terms, subject to the necessary regulatory approvals.

In addition to the capital raise, VFD Group is also seeking approval to capitalize the sum of ₦3.17bn from the balance of its share premium account as at December 31, 2024.

This capitalization will be used to issue bonus shares to existing shareholders. Specifically, the company intends to allot bonus shares worth ₦6.33bn, credited as fully paid at 50 Kobo each, to shareholders registered as of the close of business on Tuesday, April 22, 2025.

The bonus share issue will be on the basis of five new ordinary shares for every one ordinary share currently held. These bonus shares will rank equally in all respects with the existing ordinary shares of the company.

If shareholders approve the proposed resolutions, the company’s issued share capital will increase from ₦633.42m, divided into 1,266,849,100 ordinary shares of 50 Kobo each, to ₦3.8bn, divided into 7,601,094,600 ordinary shares of 50 Kobo each.

This increase will be effected through the creation of an additional 6,334,245,500 ordinary shares.

In line with the proposed increase in share capital, the company also seeks to amend Clause 6 of its Memorandum of Association to reflect the updated share capital structure.

The amendment will grant the company the flexibility to manage its capital in accordance with the provisions of its Articles of Association, including the power to vary, modify, or abrogate any rights attached to the shares.

The Board will further request authorization to deal with any fractional shares resulting from the bonus share issuance in a manner it deems fit, pursuant to applicable laws.

Additionally, the directors are seeking approval to enter into any agreements, execute necessary documents, appoint professional parties, and perform all actions required to implement the resolutions effectively. All actions will be subject to the approval and guidance of relevant regulatory authorities.

The AGM is expected to serve as a crucial platform for aligning shareholder interests with the company’s long-term growth plans and strategic objectives.

These proposals, if approved, will strengthen the Group’s capital base and enhance its capacity to pursue expansion opportunities across its investment portfolio.

By Dickson Pat 

Hundreds of finance ministers, central bankers, and policymakers from around the world are meeting in Washington this week for the semi-annual meetings of the International Monetary Fund ,IMF, and World Bank, with one issue dominating the agenda: tariffs.

While these Spring Meetings traditionally focus on multilateral policy coordination around global development, climate financing, and sovereign debt sustainability, this year’s discussions are expected to be overshadowed by a flurry of bilateral negotiations.

At the center of these talks is a global effort to seek relief from a sweeping series of U.S. tariffs reintroduced by President Donald Trump since his return to office in January.

Countries ranging from Japan to South Korea and several developing economies are hoping to secure exemptions or concessions from the U.S. administration, which has implemented aggressive import taxes up to 25% on key goods like steel, autos, and electronics.

These tariffs, finance leaders warn, are disrupting trade flows, darkening economic forecasts, and raising debt burdens in already fragile economies.

“The focus of these meetings in the past couple of years on reforming multilateral development banks and improving sovereign debt architecture will fall by the wayside”, said Nancy Lee, a senior policy fellow at the Center for Global Development and former U.S. Treasury official. “This time, it’s all about tariffs”.

According to Reuters report, central to the week’s bilateral engagements is U.S. Treasury Secretary Scott Bessent, President Trump’s chief negotiator on trade and a key figure whose stance on U.S. participation in multilateral institutions remains uncertain. His approach to tariff diplomacy and support for institutions like the IMF and World Bank is being closely watched by both allies and adversaries.

“Trade wars will dominate the week, as will the bilateral negotiations that nearly every country is trying to pursue in some way, shape or form”, said Josh Lipsky, director at the Atlantic Council’s GeoEconomics Center. “This becomes a Spring Meetings unlike any other”.

Among those seeking quick tariff deals is Japan, which has faced some of the steepest U.S. duties. Japanese Finance Minister Katsunobu Kato is expected to meet Bessent on the sidelines of the meetings to continue negotiations. South Korea’s Finance Minister Choi Sang-mok has also confirmed bilateral discussions with Bessent, aiming to delay or soften the impact of the new tariffs while exploring collaboration in energy and shipbuilding sectors.

For developing economies, the stakes are especially high. IMF Managing Director Kristalina Georgieva warned last week that the Fund’s upcoming World Economic Outlook, to be released Tuesday, will reflect “notable markdowns but not recession”. She cited “off the charts” market volatility and policy uncertainty triggered by the trade tensions as major drags on global economic momentum.

Georgieva stressed that while the world’s real economy remains resilient, worsening perceptions around trade disruptions could further dampen investor confidence and economic activity.

Some policymakers have also raised concerns about the broader implications for U.S. financial markets. The renewed trade conflict has already sparked a sell-off in U.S. Treasury securities, prompting questions about the continued status of the dollar as a global safe haven.

Adding to the uncertainty is the Trump administration’s ambiguous commitment to multilateral development institutions. The Project 2025 Republican policy platform widely seen as influencing Trump’s policy direction has called for the U.S. to reconsider its participation in both the IMF and World Bank.

During this week’s meetings, many delegates will seek clarity from Secretary Bessent on the administration’s intentions. “First and foremost, does the U.S. view support for MDBs as in its interest?” Lee asked.

World Bank President Ajay Banga reported “constructive” talks with the Trump administration but said it remains unclear whether the U.S. will fulfill a $4bn funding commitment to the Bank’s International Development Association, pledged under former President Biden.

Banga is also expected to elaborate on a shift in World Bank financing strategy, signaling a pivot toward a broader mix of energy investments, including nuclear and natural gas projects, aligning more closely with Trump’s energy policy priorities.

Despite the tensions, some signs of cooperation remain. Secretary Bessent traveled to Argentina last week to endorse the IMF’s $20bn loan program for the country, describing it as a preferable alternative to “rapacious” Chinese lending models. That show of support offered a rare moment of policy continuity between U.S. administrations.

Meanwhile, three former U.S. Treasury officials Meg Lundsager, Elizabeth Shortino, and Mark Sobel cautioned against any U.S. retreat from the IMF. In an opinion piece published in The Hill, they argued that U.S. influence at the Fund allows it to shape global economic policy at minimal cost. “If the U.S. steps back from the IMF, China wins”, they wrote.

As the week unfolds, finance leaders will continue to meet behind closed doors, negotiating trade deals, seeking tariff relief, and gauging America’s role in shaping the future of the global financial system.

… Manufacturers spent ₦1.11trn On Alternative Energy

By Yahaya Umar 

Manufacturers Association of Nigeria ,MAN, has reported a significant surge in unsold finished goods across the manufacturing sector, with inventory levels climbing to ₦2.14trn in 2024.

This development, which reflects declining consumer demand and rising production costs, was detailed in MAN’s Economic Review for the second half of 2024.

The report also revealed that manufacturers spent a record ₦1.11trn on alternative energy sources, driven by persistent electricity supply challenges and surging energy costs.

According to the report, the 87.5% year-on-year increase in unsold inventory signals the intensifying strain on manufacturers’ ability to clear stock amidst eroding consumer purchasing power and inflationary pressures.

Although the second half of the year showed some signs of relief with inventory declining by 27.9% compared to the first half the cumulative figure underscores a difficult operating environment marked by weak demand and high input costs.

The review paints a mixed picture of the Nigerian manufacturing landscape in 2024.

On one hand, the sector showed resilience in areas such as local raw material sourcing, which improved to 57.1% from 52.0% in 2023.

On the other, it grappled with macroeconomic instability, exchange rate volatility, and surging inflation, which peaked at 34.8% by year-end. These conditions drove operational expenses higher and constrained new investments, despite a slight half-year improvement in some indicators.

It stated that the energy supply was among the most pressing issues. Though average daily electricity supply to manufacturers increased from 10.6 hours in 2023 to 13.3 hours in 2024 and rose to 15.2 hours in the second half of the year, the improvement came at a steep cost.

Tariff hikes exceeding 200%  for Band A consumers, alongside 12 national grid collapses, forced manufacturers to ramp up expenditure on alternative energy sources.

Total spending on diesel, petrol, gas, and other alternatives rose by 42.3% from ₦781.68bn in 2023 to ₦1.11trn in 2024.

A sectoral breakdown of energy spending revealed that the Food, Beverage & Tobacco industry led the pack with ₦229.41bn in alternative energy expenditure, up from ₦182.76bn the previous year.

The Chemical & Pharmaceuticals sector doubled its energy spending to ₦208.68bn, while the Non-Metallic Mineral Products sector recorded ₦118.49bn a 33.7% increase.

The Textile, Apparel & Footwear sector saw the most dramatic rise, with energy expenses increasing fourfold to ₦26.45bn from just ₦6.97bn in 2023.

The high cost of energy was compounded by rising finance costs. The Central Bank of Nigeria’s aggressive monetary tightening drove up the Monetary Policy Rate ,MPR, to 27.5%, pushing average commercial lending rates for manufacturers to 35.5% up from 28.06% in 2023.

As a result, total finance costs for the sector reached ₦1.3trn, severely limiting capacity for expansion and capital investment.

Manufacturing investment also contracted significantly in real terms, falling by 35.3% to ₦658.81bn.

In nominal terms, investment declined by 11.3% to ₦2.85trn, as companies paused or scaled down expansion plans in response to mounting economic uncertainties.

The most significant reductions were observed in the Land & Buildings and Furniture & Equipment categories.

According to the report, despite these headwinds, capacity utilisation in the sector edged up slightly to 57.0% in 2024, compared to 55.1% in 2023.

This modest improvement was supported by gains in key sub-sectors, including non-metallic mineral products, motor vehicles & miscellaneous assembly, and chemicals & pharmaceuticals. However, this progress was tempered by persistent challenges such as forex scarcity, inflation, and energy disruptions.

Manufacturing production also followed a dual trend. Real output increased by 1.7% year-on-year to ₦7.78trn, driven by improved activity in select sub-sectors. Yet, production declined by 3.1% when comparing the second half of 2024 with the first, reflecting the impact of rising operational costs and weakening consumer demand.

In nominal terms, output soared by 34.9% to ₦33.43trn, largely due to inflationary effects.

The report noted that employment in the sector remained relatively stable. A total of 34,769 jobs were created in 2024, representing a 1.8% increase from 34,163 jobs in 2023.

However, employee exits also rose slightly to 17,949, compared to 17,364 in the previous year. The net result was 16,820 new jobs, virtually unchanged from the net 16,799 recorded in 2023, indicating that employment gains were mostly offset by high labour mobility and restructuring.

MAN’s Director General, Segun Ajayi-Kadir, noted that while the sector demonstrated a degree of resilience, more decisive policy support is needed to ensure sustainable growth.

He emphasised the importance of stabilising macroeconomic conditions, ensuring a reliable energy supply, and expanding access to affordable financing for manufacturers.

“The challenges are real, but so are the opportunities”, he said. “If we can address the structural constraints particularly energy and finance, we can unlock far greater productivity and industrial contribution to national growth.

The report concludes with a call for urgent reforms to ease manufacturers’ cost burdens and stimulate investment, as the sector remains a critical driver of employment, economic diversification, and inclusive growth in Nigeria.

By Aliyu Galadima 

Foreign and domestic investors have called on the Nigerian government to address some issues to make investing in the country attractive to them.

They made this call at a strategic investment forum hosted at the Nasdaq MarketSite in New York, USA. The event was organized by the Central Bank of Nigeria ,CBN, in collaboration with Nigerian Exchange ,NGX, Group Plc, JPMorgan, and the African Private Capital Association ,AVCA.

The forum was put together to woo global capital and enhance investor’s confidence because it had in attendance leaders from the Nigerian diaspora, global investment institutions, and corporate executives.

While the investors welcomed Nigeria’s reform agenda, they emphasised that sustained confidence would require consistent foreign exchange ,FX, policies, lower transaction costs, reduced regulatory friction, clearer direction on non-oil revenue reforms, an improved ease of doing business, and continued transparency in monetary and fiscal communication.

The Governor of the CBN, Mr Yemi Cardoso, in a fireside chat with Nobel Prize-winning economist, Mr James Robinson, outlined Nigeria’s monetary policy direction, growth prospects, and efforts to deepen its financial markets.

He reaffirmed the CBN’s commitment to disciplined policy management, market-friendly reforms, and enhanced transparency to foster a stable, investor-friendly environment.

“We inherited a crisis of confidence, but we chose a different path. We’re not turning back”, Mr Cardoso declared.

He also stressed the importance of strong collaboration between regulators like the CBN, market operators such as NGX Group and Nigerians in diaspora, describing it as critical to building a resilient financial system and mobilizing long-term investments.

On his part, the chief executive of NGX Group, Mr Temi Popoola, who moderated a panel on how Nigeria’s reforms are repositioning the country as an increasingly attractive destination for global capital, said, “Today’s dialogue marks a pivotal step in reshaping global perceptions of Nigeria’s investment story”.

“The candid engagement between policymakers, market operators, and investors reflects the real progress Nigeria is making. NGX Group remains committed to supporting reforms that strengthen market structures, drive innovation, and accelerate economic growth”, he added.

Democratic Front ,TDF, says the 6.84 billion dollars balance of payment surplus in 2024 is another indication of economic prosperity under President Bola Tinubu’s administration.

Malam Danjuma Muhammad, Chairman of TDF, in a statement yesterday said the development would boost investors’ confidence in the country.

“In addition to increasing the country’s foreign exchange reserve, improving the nation’s creditworthiness, and enhancing monetary policy flexibility in the economy, the balance of payment surplus will significantly reduce Nigeria’s dependency on foreign exchange to the benefit of local productivity.

“We believe that the combination of fiscal reforms in the macroeconomic system, which has enhanced the Federal Government’s revenue generation capacity, and monetary policy reforms introduced by the CBN, have boosted confidence in the Nigerian economy.

“These have encouraged import substitution in economic trades to conserve foreign capital for local economic growth”, said TDF.

The group said it was confident that this economic feat would inevitably lead to a reduction in headline inflation and also trigger an increase in production that would generate wealth and employment for Nigerians.

“We recall that for decades, the history of Nigeria’s economy was replete with over-dependence on foreign exchange for local and international trades, which impeded sustainable growth.

“This instituted a trajectory of consistent deficit in the balance of payment, and put pressure on the dollar to the detriment of the local currency and our macro economy”, said TDF.

It, however, said the Nigerian economy had responded positively to the pro-market and the private sector-friendly reforms of the Tinubu administration, as evident in the increased use of Naira for major trades, and exploring opportunities for import substitution.

“This policy has provided an incentive for Nigeria to export refined petroleum products to the United States, Saudi Arabia and other parts of the world through the Dangote Refinery, which began production under the Tinubu administration.

“It is heartening to also note that the posting of 6.84 billion dollars surplus in the balance of payment, is an indication of sustainable economic growth and stability and a show of strength to resist global economic shocks and headwinds”, the group added.

The group said the trade surplus underscored the need for the continuous implementation of the bold and pragmatic economic policies of the administration.

It said this was the only viable route to increasing the country’s foreign exchange reserves, service external debt, finance domestic investments, increase national savings, respond to internal economic challenges, and also stimulate economic growth and productivity.

It said it was optimistic that it would inevitably lead to more jobs and a plethora of trade opportunities for Nigerians in the coming months.

By Dickson Pat 

Financial analysts at BMI, a Fitch Solutions company, have projected Nigerian banks’ loan growth at 24% by the end of 2025, a significant slowdown from the 50% growth anticipated by the close of 2024.

While the outlook remains robust, the growth rate will be tempered by a combination of macroeconomic factors and regulatory changes.

As of September 2024, the Nigerian banking sector’s loan portfolio has closely tracked its asset growth, with foreign currency-denominated loans accounting for 38.1% of the total loans.

This proportion has been heavily influenced by the steep depreciation of the naira, which has inflated the value of foreign-denominated loans.

However, analysts believe that the continued depreciation of the naira is unlikely to provide the same level of boost to foreign currency loans in 2025, as the currency stabilizes.

BMI analysts foresee that the broader economic environment will offer support for loan growth, citing a slight recovery in GDP growth and an anticipated reduction in inflation.

These factors, combined with expectations of interest rate cuts by the Central Bank of Nigeria ,CBN, in 2025, are expected to stimulate credit demand and bolster loan growth across the banking sector.

However, analysts caution that several challenges lie ahead for Nigerian banks, primarily stemming from recent regulatory changes.

The CBN has recently imposed higher capital requirements for banks, which will require lenders to bolster their capital buffers. While this move is aimed at strengthening financial stability in the long run, it may constrain banks’ lending capabilities in the short term, particularly for smaller institutions.

According the analysts, in addition, the high Cash Reserve Ratio ,CRR, of 50%, which mandates banks to hold a substantial portion of their deposits with the CBN, will divert resources away from lending to the private sector. This further limits the availability of credit and may slow the pace of loan growth.

The banking sector in Nigeria has also faced ongoing pressure to maintain adequate capital levels. The capital adequacy ratio ,CAR, has been trending downward in recent years, standing at 12.5% as of Q2 2024.

They noted that the CBN’s decision to increase the minimum capital requirements for banks in March 2024 is expected to bolster capital buffers, with many larger banks already meeting or on track to meet these new requirements through fresh equity injections and strategic mergers and acquisitions.

According to them, this regulatory shift is anticipated to lead to increased consolidation within the banking sector, particularly among smaller, third-tier banks.

Heritage Bank has already been the first casualty of the new capital requirements, collapsing as a result. In response, the CBN approved its first bank merger under the new rules in August 2024, between Providus Bank and Unity Bank, a sign of the increasing trend of mergers and acquisitions ,M&A, expected in the coming months.

The analysts believe that these strategic mergers will help improve the capital positions of Nigerian banks, ensuring they are better equipped to weather future economic challenges and maintain stability in the face of external and domestic pressures.

With these adjustments, Nigerian banks are expected to emerge from this period of regulatory tightening in a stronger position to support economic growth.

While loan growth in Nigeria is set to slow in 2025, the banking sector’s outlook remains positive, with an emphasis on strengthening capital buffers and adapting to the evolving regulatory landscape.

From Our Correspondent 

Kano State Government says, it will attract over 10 billion dollars in investment in renewable energy and solid minerals development from its partnership with prestigious Moroccan companies in the next five years.

The state government also said the stage was set for the signing of a series of investment Memoranda of Understanding ,MoU, with the Kingdom of Morocco. This is contained in a statement on Sunday in Kano by Sunusi Bature Dawakin-Tofa, the media aide to Gov. Abba Kabir-Yusuf.

He said the agreements would focus on renewable energy, agriculture and commerce, as part of the state government’s drive to reposition its economy. Dawakin-Tofa said the development was sequel to a high level investment mission to Morocco led by the governor.

He said the delegation held strategic meetings with key Moroccan institutions, including the Ministry of Energy Transition and Sustainable Development, the Moroccan Agency for Sustainable Energy ,MASEN, the Moroccan Agency for Africa ,OCP Africa, and the Casablanca Chamber of Commerce.

According to Dawakin-Tofa, the agreements will also explore areas such as investor identification, financing models, and cutting-edge technologies for energy storage and efficient distribution, particularly for industrial use in Kano.

He said the Casablanca Chamber of Commerce, one of Africa’s leading private sector platforms, expressed its willingness to collaborate with the state in areas of renewable energy and solid minerals development.

 “This partnership is expected to boost the state’s economy and contribute to the projections of attracting up to $10 billion in investments over the next five years in line with the state’s strategic investment plan”, he said.

Dawakin-Tofa said the delegation also met with OCP Africa, one of the world’s largest fertiliser producers.

“OCP welcomed the partnership, proposing new agricultural development projects that include fertiliser blending plants, advanced supply chain systems, and support for smallholder farmers through modern farming technologies.

“The visit marks a major milestone in the state’s pursuit of global partnerships to fast-track industrial growth, clean energy transition, and sustainable agricultural development”.

 According to Dawakin-Tofa, one of the major outcomes of the visit is a proposed partnership with MASEN, which included technical collaboration to support Kano’s transition to clean energy.

 “MASEN, renowned for managing one of Africa’s largest solar power plants in Ouarzazate, generating 500 megawatts, has pledged to share its expertise and lessons learned and offer technical support for Kano’s Light-Up Kano Initiative, which aims to generate 2,000 megawatts of solar energy within five years”.