Economy
Nigeria, a fantastic place for investment Osinbajo tells Vietnamese
Nigeria is the best, most natural destination for investment in Africa and the Socialist Republic of Vietnam can leverage the cherished friendship with Nigeria to gain entry to the vast Nigerian and African markets, according to Vice President Yemi Osinbajo, SAN. Prof. Osinbajo made this assertion at his meeting this morning with Vietnamese President Nguyen Xuan Phuc, who also expressed strong commitments to leverage and deepen the existing diplomatic relations and friendship with Nigeria for economic development, especially in the areas of agriculture, oil and gas, and telecommunications. Both leaders interacted in what was a very friendly and warm encounter when Prof. Osinbajo paid a courtesy call on the President as the VP wrapped up a 3-day official visit to Vietnam. The Vietnamese leader had come outside the building to personally receive the Vice President and held his hand as they both walked inside the Presidential Palace. At the end of the meeting, President Phuc again escorted the VP outside and this time went all the way to see him to his car and waved as the VP’s convoy drove off.
The VP had in the first two days of his visit held talks with his counterpart, Madam Vo Thi Anh Xuan, and Prime Minister, Phạm Minh Chính. He also met the Vietnamese business community under the auspices of the Vietnam Chamber of Commerce and Industry (VCCI), visited the Vietnam Academy of Agricultural Sciences, the FTP University and its software firm, and also interacted with representatives of the Nigerian community in Vietnam. On Tuesday while speaking at the VCCI, Prof. Osinbajo had said Nigeria remains the most intuitive place to do business, observing that despite the economic slowdown in the aftermath of the pandemic, GDP growth has been positive for the last seven quarters and though it slowed to 2.3% on a year-to-year basis in the third quarter of this year, it was a 9.7% increase over the second quarter. “Apart from being the most populous country in Africa, Nigeria also has the continent’s largest economy, accounting for over 20% of continental GDP. The Nigerian private sector has undertaken large path-breaking investments in the country in agriculture, manufacturing, petrochemicals, finance, telecommunications and the digital economy,” he added.
In terms of market viability, Prof. Osinbajo noted that Nigeria continues to rank very high, explaining how “our people are renowned for being energetic and tech-savvy, with over 60% of the population below 25 years of age.” In the tech space, the VP said “between 2015 and last year, 6 Nigerian tech-based companies have been certified as unicorns. These are companies valued at over a billion US dollars each. Nigeria is also now home to over 200 stand-alone FinTech companies, plus a number of FinTech solutions offered by banks and mobile network operators as part of their product portfolio. Between 2014 and 2019, Nigeria’s bustling FinTech segment raised over $600 million in funding and attracted a quarter of the almost $500 million raised by African tech startups in 2019 alone.” He stated further that “the creative sector which employs over 4 million people and has the potential to add 2.7 million by 2025, is ranked the second largest employer of labour after the agricultural sector.
“We are on course to become the 3rd largest national market, based on headcount by the year 2050. We are already the largest financial market in Africa with a market capitalisation in excess of US$50 billion as of the end of last year.” And also today in his conversation with the Vietnamese leader, the Vice President informed President Phuc about his engagements in Hanoi and restated that there is great potential for stronger and more fruitful collaborations between Vietnam and Nigeria. According to Prof. Osinbajo “building on our friendship, we are looking forward to a greater number of Vietnamese investments in Nigeria and Africa by extension.”
He re-emphasised the advantage of Nigeria’s membership of AfCFTA, saying “Nigeria offers one of the best investment destinations in Africa, some of the best investment conditions in Africa because, among other things, Nigeria is the gateway to Africa. We believe that if Vietnam investments come into Nigeria, it will have the potential of penetrating the gates of West Africa and the entire continent.”
The Vice President identified areas of investments for the Vietnamese business community to include renewable energy, solar power plants (in furtherance of international agreements to reduce gas emission by 20%) and telecommunications, noting that “Nigeria is a fantastic opportunity for investment.” On his part, President Phuc welcomed the VP to Vietnam, saying “we appreciate the gesture of you coming from Africa based on our cherished friendship and partnership.” He assured the VP that further discussions would be held on the aspirations of Vietnamese entrepreneurs investing in Nigeria, especially in the areas of agriculture, technology, telecommunications, oil and gas, among others. Specifically regarding agriculture, President Phuc said, rice production is one of the strengths of the country, and as such, the collaboration between both countries can enhance Nigeria’s rice production capacity. Commenting on the VP’s previous meetings with the Vietnamese VP and Prime Minister, the President noted that the outcome of the interactions has been good. He said, “we have reached a consensus on many issues, we have a lot of potentials to explore.”
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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