Economy
Eko Atlantic eyes 2023 finish as Nigeria economy picks up
A high-end seaside development in Nigeria’s megacity of Lagos could be fully operational in the next five years as the West African nation’s economy rebounds from its worst contraction in more than two decades, according to the project’s promoter. Eko Atlantic City is being built on a planned 10 square-kilometer (3.8 square-mile) stretch of land that’s being reclaimed from the Atlantic Ocean, Ronald Chagoury, chairman of South Energyx Nigeria Ltd., said in a May 23 interview in the commercial hub. When the final project is complete, as many as 250,000 people are expected to live in the development, where a three-bedroom apartment could cost almost $1 million, according to online property listings.
“We still need two years for the sea wall, one year after that for the sand-filling and another year to 18 months for the infrastructure, so say another five years to be fully operational with infrastructure,” with the first half already complete, said 69-year-old Chagoury, whose company is in charge of the basic infrastructure such as roads. Developers will erect most buildings, and the wider project could take up to 35 years, he said. The sea wall will be 8.5 kilometers (5.3 miles) long once completed. Construction slowed after a fall in oil prices in mid-2014 caused the economy of Nigeria, Africa’s top crude producer, to contract. Today, Eko Atlantic, where so far 6.5 square kilometers have been reclaimed, is traversed by roads and has three completed and occupied buildings — two residential and one for businesses — and work has started on another 13.
“Over the last six months, we’ve seen an improvement in the economy,” the Lebanese-Nigerian businessman said. “We’re seeing the end of the tunnel.” While economic growth slowed to 1.95 percent in the first three months of the year, Nigeria’s gross domestic product has expanded for four straight quarters. The International Monetary Fund forecasts growth will accelerate to 2.1 percent this year from 0.8 percent in 2017, as oil output remains stable and prices rebound, providing more foreign currency for manufacturers to import inputs.
Once completed, Eko Atlantic City will have high-speed fiber internet, 24-hour power in a country with frequent outages, restaurants and shops along its Eko Boulevard, which is modeled after Paris’ Champs Elysees. It also hopes to attract the corporate headquarters of top companies in Nigeria and West Africa. Nigerian oil magnate Folorunso Alakija said in a 2015 interview with Bloomberg that she was investing there, and the U.S. consulate told CNN in August 2016 it was considering a property.
The consulate didn’t answer an email or return a call seeking comment, and Chagoury declined to speak about his clients. He also declined to say how much money had been invested in the project and how many plots had been sold. Lagos’s high-end property market, which has typically been dominated by politicians, has also suffered from a crackdown on corruption since President Muhammadu Buhari was elected three years ago, said Afrinvest Securities Ltd. Managing Director Ayodeji Ebo. “People can’t just bring out their money anyhow,” he said by phone from Lagos. “Occupancy rates have been very low.”
While the project won praise by former U.S. President Bill Clinton who visited the site in 2013, the need for more luxury or even upper-middle-class housing has been questioned in a city of 20 million inhabitants who mostly earn a modest income. CNN has reported that the Clinton Foundation received donations from the Chagoury family. In the high-value areas of Victoria Island, Ikoyi and Banana Island, vacancy rates run between 20 to 30 percent, according to Jonathan Millard, director at Troloppe Property Services.
“And then there are all these buildings that are currently empty,” he said by phone. Eko Atlantic’s plan includes one-, two- and three-bedroom apartments starting at a sale price of $200,000, Chagoury said. “People think it’s for the rich only,” he said. “It’s not for the rich; it’s for the middle class and up.” With an income per capita of $7,000, according to Lagos-based advisory group Financial Derivatives, the average city resident won’t be able to live there now. But an estimated 6.5 percent annual growth rate in the urban area’s economy between 2015 and 2030 means the number of households earning $70,000 annually could double to about 120,000 by 2030, according to PwC.
With land and property priced in dollars, Eko Atlantic has missed out on buyers affected by a more-than-halving of the value of the naira against the greenback since mid-2014. So South Energyx is seeking to attract some of the estimated 15 to 18 million Nigerians who live abroad and have access to cheaper loans and foreign-currency earnings.
Less than one in 20 of houses in Nigeria are financed by property loans, according to the Mortgage Banking Association of Nigeria. Chagoury and his older brother Gilbert founded the Chagoury Group conglomerate in the 1970s with a range of interests including flour mills, water bottling, insurance, furniture manufacturing, telecommunications and hospitality, according to the group’s website. They own Lagos’ sprawling 825-room Eko Hotel. Now Ronald Chagoury’s primary focus is finishing Eko Atlantic. He remains confident the demand will pick up again, 12 years after the signing of a 78-year concession agreement with Lagos state to get the project started. “Lagos’s population is growing to 25 million,” he said. “If 2 percent can afford it, or 5 percent, that will be enough.”
Bloomberg
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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