Here’s a quick roundup of the top business news you may have overlooked, giving you the insights you need to stay informed and ahead of the game.
1. Energy Woes Loom: Solar Ban Sparks Outrage
Nigeria’s government plans to ban solar panel imports, sparking outrage. Chidi Okonkwo, a local businessman, calls it “outlawing umbrellas during the heaviest rains.” Essentially, solar power is a lifeline where power cuts are common. Subsequently, the government, pushing local content, believes Nigeria can produce enough panels. However, experts warn of a backfire, like the failed 2019 border closure. “Prices will rise,” predicts Aisha Mohammed, an energy analyst. Moreover, Jide Pratts, a trade expert, notes local production isn’t ready. Furthermore, Chioma Nwachukwu, a solar nonprofit project manager, says local panels are pricier. Consequently, with solar costs already high, a ban could boost them 40-60%. Ultimately, Tunde Olawale, a consultant, fears a return to polluting generators. And for Adebola Ogunleye, a food vendor, it means tough choices. The big question: can Nigeria build its solar industry in time?
2. Sky-High Fares: Air Travel Takes a Hit
Next, Nigeria’s domestic aviation sector hit turbulence. Specifically, passenger numbers dropped by 10% in 2024. Basically, aircraft shortages and soaring ticket prices are to blame. Consequently, airlines struggle with foreign exchange, making spare parts scarce. Also, routes to smaller cities suffer, leaving travelers with few options. For example, a one-way ticket to a second-tier airport now costs between ₦100,000 and ₦300,000, up from ₦65,000. Olumide Ohunayo, a travel expert, blames reduced income and infrequent flights. Moreover, Seyi Adewale, a cargo CEO, criticizes route monopolies. Additionally, the suspension of Dana Air worsened the situation. Ibrahim Mshelia, an airline CEO, points to dollar scarcity for maintenance. To sum up, experts suggest wet-lease agreements to boost capacity. Otherwise, air travel will become even more inaccessible.
3. Traffic Relief: Independence Bridge Reopens
Good news for Lagosians! The Federal Government ordered the immediate reopening of the Independence Bridge. David Umahi, the Minister of Works, acknowledged the traffic chaos. Olukorede Kesha, a Federal Controller of Works, apologized for the inconvenience. In short, while repairs are still planned, the bridge is back open to ease the gridlock.
4. Network Overhaul: Telecoms Fight Back
Now, let’s talk about our phones. Telecom companies, including MTN, Airtel, and Glo, are investing millions to improve network quality. Basically, this comes after the NCC approved a 50% increase in call and data prices. As a result, 1GB of data now costs ₦587.5, up from ₦287.5. For instance, Airtel’s 1GB plan jumped to ₦800. Understandably, users are frustrated, losing affordable bundles. However, telecom leaders argue the price hike is necessary for sustainability. Karl Toriola, MTN Nigeria’s CEO, warns of a crisis without investment. Ultimately, the companies promise better service with the increased revenue.
5. Currency Crunch: Trump’s Tariffs Shake the Naira
On the financial front, the naira took a hit. Essentially, it depreciated against the dollar after Trump announced global tariffs. Specifically, the naira fell to ₦1,552.53 per dollar. Also, foreign exchange reserves dropped. Additionally, oil prices fell due to concerns about global demand. Basically, Trump’s move raises fears about ripple effects on emerging markets.
6. World Bank Boost: Education and Welfare Get a Lift
Finally, the World Bank approved $1.08 billion for Nigeria’s education and welfare programs. Firstly, $500 million goes to NG-CARES, a resilience program. Secondly, $80 million supports ANRIN 2.0, aimed at reducing malnutrition. Thirdly, $500 million funds HOPE-EDU, focusing on basic education. Ndiamé Diop, World Bank Country Director, emphasizes the importance of these investments for long-term development. Ultimately, these programs align with Nigeria’s national development goals.
