Economy
Africa will be global labour centre by 2030 – Lagarde
Managing Director, International Monetary Fund IMF, Ms Christine Lagarde has said that by 2030, Africa will be the centre point of labour as over half of new workers entering the global labour force will come from Africa. This she said is as a result of the youthful nature of Africa demography.
Her position was made known in her address to the Economic Commission for Africa’s hosted by the commission in Addis Ababa, Ethiopia themed: Economic challenges and opportunities facing the African continent; the role of technology in supporting the region’s achieve – more inclusive growth.
Lagarde in her position paper said that youths in Africa comprise 75 per cent of the working population. “With the right strategy, this incredible surge could translate into a virtuous cycle of economic growth and development”. She, however, cautioned that hundreds of millions of people would need better healthcare, more educational opportunities and jobs, especially in career paths that had not yet been invented. She said “when I travel in Africa, I never worry that the dreams of the next generation are not big enough. “The only question is whether we can create an environment where those dreams will have the chance to be realised.” Lagarde expressed concern over uneven growth and slowdown in some countries due to lower commodity prices. She lamented that on a Gross Domestic Product (GDP) per capita basis, 15 countries in the continent were expected to experience a decline this year.
“Achieving growth that is stronger, lasting and more inclusive – one that leads to benefits and higher living standards – will require diversification. And the right balance between investment and debt sustainability and harnessing technology to accelerate economic and social development. Technology does not hold all the answers in fact, technology often raises new questions, including the impact of automation. However, there is no doubt that technology is an important part of the story,” she said.
Lagarde said that governments could do more than just encourage innovation, they could also help lead the way themselves. She said that governments could create a foundation for innovation by streamlining regulations “so that everyone plays by the same rules and entrepreneurs are rewarded for their ingenuity. Doing both – creating the right environment for technological innovation and leveraging digital tools leads to more transparency, stronger accountability and delivery of a better life for every citizen,” she said. Citing an example, she indicated that updating payment systems from cash to digital could lead to savings of about one per cent of GDP, adding that in some places in Africa the potential was even higher.
The Executive Secretary, ECA, Ms Vera Songwe said that the fall in GDP per capita in many countries was alarming for inclusive growth, adding that the biggest challenge facing Africa was how to increase the standard of living of its populations. “With the huge demographic bulge Africa is facing, can Africa dream of moving more countries into middle-income status? Do we have to start working on a world where with the current population dynamics, Africa is caught up in a demographic trap where growth does not lead to increases in GDP per capita?”
To accelerate development, she called for more ambitious growth numbers, stating that double-digit growth rates were now needed to respond to these challenges. “This is the only way to invest while maintaining appropriate macro balances such as the debt to GDP. As interest rates rise in the West and threaten to reduce Foreign Direct Investments (FDIs) flows to Africa, we have to find ways of financing our development.”
She proposed the need to collect more taxes, broadening the base, making all savings more productive and investing resources efficiently and effectively. Lagarde’s official visit to the ECA is the first of its kind by a leader of the IMF, the statement said. Present at the event are representatives from the private sector, academia, university students, UN staff and the diplomatic corps.
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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