Economy
President Buhari And The Fayawo Economy
On 15th October, the comptroller-general of the Nigerian Customs Service (NCS), Col. Hameed Ali (rtd), announced that “all goods, for now, are banned from being exported or imported through our land borders and that is to ensure that we have total control over what comes in”.
He added: “We are strategizing on how best the goods can be handled when we eventually get to the point where this operation will relax for the influx of goods.” With that statement, it became clear that the land borders between Nigeria and her neighbours that had been closed since August were not about to be opened soon.
Considering the negative impact smuggling of goods through our land borders has over the years created for local businesses and national security, it is difficult to fault the decision. For instance, data from ‘India and Benin Republic Bilateral Trade Report’ between 1st to 24th November 2016 reveals that within a 24-day period, India exported to Benin Republic 3340 shipments valued at about 75 million dollars.
“Top products which India exports to Benin are – Rice (HS Code – 1006) which accounted for 31.75% of total exports followed by Motor Vehicles…”, the report states. And we are talking of imports from just one country!
The author, Olusegun Adeniyi
With a population of 12 million people, which is about half that of Lagos, we must question why Benin Republic is reputed to be the 5th importer of rice in the world and the largest importer of second hand vehicles and clothes. The issue is that in clear violation of ECOWAS statutes, Benin Republic authorities have for decades made the smuggling of goods into Nigeria a mainstay of their economy. Niger, Chad, Cameroon and countries that do not even border Nigeria are also neck deep in this unwholesome practice.
Great economies of the world are sustained by the strength of their local production. In Nigeria, the influx of smuggled items has practically killed local initiatives. A recent report by the Enforcement, Investigation and Inspection Department in the Statistics Office of the NCS on smuggled products from 2016 to date is revealing. An overview of the report shows that the NCS seized items valued at N8.056 billion in 2016, N9.812 billion in 2017, a whooping N56.258 billion in 2018 and N1.806 billion from January to June this year. Yet, the items seized may amount to a tiny percentage of those that eventually entered our shores.
In 2016, commodities valued at N8,056,098,567.15 billion were seized by the NCS. A product by product breakdown, and their monetary values, are as follows: Artefacts, N115,727,471; bags/suitcases, N82,200,750; beverages/confectioneries, N5,870,655; boats/canoes/vessels, N1,075,000; ceramics and articles of ceramics, N11,670,016; cosmetics/perfumes/deodorants, N896,500; electronic/parts thereof, N4,777,150; fish/fish products, N19,210,000; footwears, N147,279,950; fridges/used compressors/air conditioners, N14,471,000; furniture and parts thereof, N143,450,511; and insecticides/repellents, N33,070,000. Others included were: Machinery/mechanical appliances/parts thereof, N29,766,500; motor cycles/ bicycles, N61,547,420; motor vehicles, N2,634,385,382.65; narcotics/Indian hemp/hard drugs, N495,344,674; pharmaceuticals/medicaments, N389,727,800; plastic/articles of plastic N10,919,420; petroleum products, N4,119,281.50; rethreaded and used pneumatic tyres N287,004,650; poultry products, N1,063,021,200; and raw hide/processed leather, N52,000,000. Others were rice, N1,170,690; soap/detergents/toiletries, N149,249,000; spaghetti/noodles, N23,881,064; spirit/beers, N7,636,000; sugar/salt, N348,600; textiles, fabrics and articles thereof, N499,426,900; timber and parts thereof, N379,128,600; tomato paste, N109,000; vegetable oil, N170,103,972; wines/alcoholic beverages, N10,567,500 and other goods N37,421,900.
Similarly, in 2017, products valued at N9,812,369,886 were seized with the following breakdown: Animal/wildlife animal products, 273,423,095.24; arms and ammunition, N532,183,095.24; bags/suitcases, N7,035,000; beverages/confectionaries, N9,398,600; boats/canoes/vessels, N1,949,292.19; ceramics and articles of ceramics, N8,678,500; currency/monetary documents, N17,040,000; elect/electronics/parts thereof, N221,889,100; fish/fish products N26,238,000; footwears, N75,255,200; fridges/used compressors/air conditioners, N9,834,000; furniture and parts thereof, 80,575,000.00, and insecticides/repellents, N3,628,000. Others were: Machinery/mechanical appliances/parts thereof, N92,283,900; maize N2,400,000; motorcycle/bicycles, N17,851,154; motor vehicles N4,067,307,884.19, narcotics/Indian hemp/hard drugs N638,580,749; plastic/articles of plastic, N9,219,825; petroleum products, N25,918,020; rethreaded and used pneumatic tyres, N212,870,900; poultry products, N517,767,100; printed books/materials N515,000; raw hide/unprocessed leather N32,850,000 and rice, N1,292,619,521. Others were scrap metals, N75,050,000; soaps/detergents/toiletries, N44,905,300; spaghetti/noodles, N24,749,828; sugar/salt N10,467,293; textiles, fabrics and articles thereof, N391,074,024; timber and parts thereof, N294,339,442; tomato paste N11,824,000; tobacco and cigarettes, N1,816,000; vegetable oil, N180,019,871; wines/alcoholic beverages; N13,930,000; and other goods, N485,819,846.
The quantum of smuggled products in 2018 was alarming as items valued at whooping N56,258,550, 658.32 were seized. Records of the seizure by the NCS were, animal/wildlife animal products valued at N4,348,057,579; arms and ammunition, N106,647,607; bags/suitcases, N16,145,900; beverages/confectioneries, N11,658,400; boats/canoes/vessels, N12,520,000; ceramics and articles of ceramics, N15,700,800; cosmetics/perfumes/deodorants, N1,990,000; elect/electronics/parts thereof, N96,771,092; fish/fish products, N2,282,000; footwears, N184,864,982; fridges/used compressors/air conditioners, N19,639,225 and furniture and parts thereof, N4,718,000. Others were insecticides/repellents, N16,659,600; machinery/mechanical appliances/parts thereof, N51,691,568; maize, NN1,248,000; and motorcycles/bicycles, N7,917,332; narcotics/Indian hemp/hard drugs N529,824,417; pharmaceuticals/medicaments N38,145, 257, 037; plastic/articles of plastic, N16,192,000; petroleum products, N78,846,440; rethreaded and used pneumatic tyres, N65,994,278; poultry products, N136,188,500 and printed books/materials, N99,000. There were also rice, N2,516,234,000; scrap metals, N186,135,943; soaps/detergents/toiletries, N35,557,200; spaghetti/noodles/couscous N200,273,200; spirit/beers N18,236,500; sugar/salt, N57,809,068; textiles fabrics and articles thereof, N765,816,545; timber and parts thereof N90,000,000; tomato paste N130,967,180; tobacco and cigarettes, N5,310,500; vegetable oil, N229,101,436; wines/alcoholic beverages, N4,296,000 and other goods, N313,303,401.
With barely two months to the end of the year, the country has recorded a reduction in losses when compared with records of seizure in the past three years. For instance, smuggled items worth a total of N1,806,886,286.78 have so far been seized. The breakdown showed products such as artefacts and antiquities, at the rate of N105,000 were seized. Also seized were bags/suitcases, N725,225 bags; beverages/confectioneries, N5,070; elect/electronic/parts thereof, N6,376,832.50; footwears, N11,905,300; fridges/used compressors/air conditioners, N584,700; furniture and parts thereof, N534,066; N243,600; machinery/mechanical appliances/ parts thereof, N503,000 and motorcycles/bicycles, N2,128,338.92. Others were motor vehicles, N1,063,164,764.81; narcotics/Indian hemp/hard drugs, N8,182,063; pharmaceuticals/medicaments, N345,855,450; plastic/articles of plastic, N348,300; petroleum products N480,020.50; rethreaded and used pneumatic tyres, N13,422,200; poultry products, N8,337,925; raw hide/unprocessed leather, N114,491,368 and rice, N123,169,960. Also included were scrap metals, N25,147,110; soaps/detergents/toiletries, N91,795; spaghetti/noodles/couscous, N1,957,915; sugar/salt, N2,929,245; textile fabrics and articles thereof, N19,244,166.40; timber and parts thereof, N685,500; tomato paste, N9,620,300; vegetable oil, N24,742,430; wines/alcoholic beverages, N445,000 and other goods, N21,432,641.65.
Whatever may be the misgivings over the closure of our land borders, we cannot allow our country to become a dumping ground for smuggled goods that feed the economy of our neighbours. But if we are to tackle the issue of smuggling, we must also look inwards. Growing up, many of us actually thought smuggling was a legitimate profession, given the impunity of perpetrators. It was not uncommon to hear that someone was a ‘Fayawo’ (smuggler) and there are many Nigerians who have become exceedingly rich, even billionaires on account of this economic sabotage. And if we are to be honest, the real enablers of these crooks are top officials of Customs. In fact, the majority of smugglers are Custom officials (retired and serving).
Given the foregoing, we must commend the attempt by the Buhari administration to confront this challenge that has not only economic but serious national security implications. For instance, in 2016, illegal arms and ammunition worth N532,183,095.24 and hard drugs related goods worth N495,344,674.00 were seized by Customs. If we extrapolate that the majority of smuggling activities succeeded, then we can only imagine the danger this poses to our national security. But the questions remain: Will the closure of the land borders finally stop smuggling? For how long do we intend to close these land borders? What happens after they are eventually reopened since they cannot be closed for ever?
In a research paper titled, “Second-hand vehicle markets in West Africa: A source of regional disintegration, trade informality and welfare losses”, four Nigerian lecturers, Abel Ezeoha, Chinwe Okoyeuzu, Emmanuel Onah and Chibuike Uche examined “second-hand vehicle markets in the West African region, focusing on the triad trading arrangements among Nigeria, Benin, Togo, and Niger” with the conclusion that the market provides disincentives against regional integration. “Benin and Togo are incentivised by the revenues derived from re-export trade and port operations. Niger provides a proxy market for the illegal re-export of these vehicles to Nigeria, with the latter suffering huge welfare losses as a major consuming nation”, they wrote.
That the closure of land borders came just three months after signing the African Continental Free Trade Agreement is unfortunate. But we were left with little choice. My friend, Dr Orji Ogbonaya Orji, the NEITI Director of Communications, is easily one of the most humorous Nigerians around. On Tuesday, Orji told me the story of a man whose wife was involved in adultery and was crying. While his friend commiserated with him, he reportedly said, “No be the man wey dey sleep with my wife inside a locked room dey pain me. Na the man wey dey peep through the window.” From my reading of the situation, those (about 50 other African countries) “peeping through the window” are more dangerous to our economic wellbeing than some naughty neighbours. Dealing with those neighbours will send a message to them that we will not allow our country to be a dumping ground in the name of free trade.
The border closure is an opportunity for Nigeria to correct the anomaly of corruption among NCS officials who should advise government on the appropriate tariff on goods that are currently smuggled in order to encourage legitimate importation and enhanced revenue. This is also an opportunity to determine the competitive advantage of the Nigerian economy in the production of those smuggled items we consume. But more important is the need for internal cleansing by the NCS, regardless of their current posture. The modus operandi, orientation and doctrine of the NCS is inherently dysfunctional to the wellbeing of our economy.
On the whole, the challenge for the federal government is that of remaining faithful to the relevant ECOWAS and AU treaties on legitimate movement of goods and persons while controlling the epidemic of smuggling across our land borders. It is difficult to quantify the damage smuggling, surreptitiously encouraged by a number of our neighbouring countries, has done to our economy and national security. We have not even addressed the subversion by these countries of our foreign exchange market and the social welfare transfer payments as beneficiaries of smuggled subsidised fuel from Nigeria.
While fidelity to ECOWAS and AU treaty obligations is important, the issues we need to address in this closure of borders are: Combating smuggling, curbing institutional corruption, protecting and promoting local industry and boosting revenue through tariff reform. For now, let the land borders remain closed until we can guarantee a measure of sanity.
You can follow me on my Twitter handle, @Olusegunverdict and on www.olusegunadeniyi.com
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Tier-one Lender, Fidelity Bank Plc., has announced the resumption of international transactions on its Naira Debit Cards.
This recommencement gives customers the freedom to make seamless payments abroad, online, and at ATMs outside the country.
The Divisional Head of eBanking, Fidelity Bank, Ifeoma Onibuje, shed light on the development.
Onibuje said: “We are delighted to inform the public that Fidelity Naira Cards are now enabled for global use.
“This means that our travelling customers can now utilize their Naira Debit cards outside the country to shop, spend and withdraw internationally without hassles.”
“Consequently, our customers can now spend up to $1,000 quarterly for international POS and online transactions; and withdraw up to $500 quarterly on international ATMs.”
The announcement offers Fidelity Bank customers another way to complete international transactions, in addition to the Bank’s existing foreign currency debit and credit cards.
The bank stated that it further reinforces its commitment to delivering solutions that fit seamlessly into customers’ lifestyles.
With Fidelity Bank’s VISA and Mastercard Naira Debit Cards, Nigerians can now enjoy effortless global access.
Beyond payments, Fidelity VISA cardholders, one of the variants of the bank’s card offerings, also enjoy premium travel and lifestyle benefits.
The benefits range from airport lounge and spa access via the Visa Airport Companion App, to fast-track immigration lanes and 20% discounts on SIXT car rentals worldwide.
This move, the bank said, also reflects its commitment to provide secure, convenient, and reliable banking services that empower customers in Nigeria and beyond.
The bank noted that it has deliberately made the process of getting a Fidelity Naira card seamless.
It stressed that customers can easily apply for their Fidelity VISA or Mastercard Naira Debit card via the Fidelity Mobile App or simply visit the nearest Fidelity bank branch to request for one and they can start transacting globally with ease.
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine.
Additionally, the Bank was recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.
A Nigerian TikTok sensation known as “Geh Geh” has stunned the internet after pulling in over $30,000 from a single live session that attracted more than 177,000 viewers.
The young entertainer, who calls his platform the “University of Wisdom and Understanding,” has quickly built a cult following with his raw and unfiltered lectures about women, money, and survival in Nigeria.
During the live broadcast on Thursday, August 21, viewers showered him with virtual gifts that he later calculated to be worth over $30,000.
The milestone instantly pushed him into the spotlight as one of Nigeria’s fastest-rising online personalities.
Reacting in disbelief after the stream, Geh Geh said:
“More than 177,000 people watch my lectures today. Jesus! University of wisdom and understanding, the only university where once you graduate, woman go fear to ask you for money.”
Despite not having a formal education, Geh Geh proudly calls himself “the first illiterate to find a university in the history of Nigeria.” In a video after the viral live, he reminded fans of his humble background:
“I no be graduate too, but by the grace of God, I don find school. I be orphan, but now Nigerians don show me love.”
The TikTok star admitted he was overwhelmed by the generosity of his supporters.
“See gift I made over… more gift when they give me today is worth about $30,000. I no go take this love for granted, because I no really do anything for am.”
His rise has been hailed as proof of how social media is transforming lives in Nigeria. With no degree, no rich background, and no industry connection, Geh Geh has managed to build a fanbase that now calls themselves “students” of his unusual university.
Still, his controversial views on women and relationships continue to spark heated debates. While some dismiss his advice as reckless, others insist his boldness speaks directly to Nigeria’s frustrated youth.
Reflecting on his sudden fame, Geh Geh compared himself to great thinkers:
“If Nigeria be country wey value great people, by now them suppose dey compare people like me with Aristotle, Wole Soyinka, Einstein… but I thank God say people dey see my head and my own difference.”
From an orphan with no prospects to a viral star earning in dollars, Geh Geh’s story has become one of digital empowerment.
His journey shows how platforms like TikTok are creating new forms of fame, money, and influence for Nigerians especially those once written off by society.
The United Kingdom has once again cemented its position as Nigeria’s leading source of foreign capital, accounting for more than N5.5 trillion in inflows during the first quarter of 2025, according to the latest data from the National Bureau of Statistics (NBS).
Figures from the Capital Importation Report show that capital from the UK rose to $3.68bn (N5.52tn) in Q1 2025, representing 65.26% of Nigeria’s total $5.64bn inflows for the quarter.
This marked a 29.2% rise from the $2.85bn recorded in Q4 2024 and more than double the $1.81bn inflows seen in Q1 2024.
This underscores Britain’s dominance in Nigeria’s external financing profile and highlights the strong bilateral financial ties between both nations.
Breakdown of Q1 2025 Capital Inflows by Country
United Kingdom: $3.68bn (65.26%)
South Africa: $501.29m (8.88%)
Mauritius: $394.51m (6.99%)
United States: $368.92m (6.54%)
United Arab Emirates: $301.72m (5.35%)
Together, these top five countries accounted for over 92% of Nigeria’s capital inflows, reflecting both the concentration of Nigeria’s foreign investments and the risks of over-dependence on limited markets.
Other contributors included:
Cayman Islands: $114.76m (up sharply from $0.64m in Q4 2024)
Belgium: $70.54m
France: $47.33m
Netherlands: $42.68m (down significantly from $425.61m in Q4 2024)
Singapore: $36.79m
Overall, capital importation into Nigeria stood at $5.64bn in Q1 2025, up 10.9% from Q4 2024’s $5.09bn, and a remarkable 67.1% higher than the $3.38bn recorded in Q1 2024.
The NBS noted:
“Capital Importation during the reference period originated largely from the United Kingdom with $3,681.96m, showing 65.26 per cent of the total capital imported.”
A separate survey by Strategy Management Partners (UK) reveals that British companies are increasingly targeting Africa as a strategic growth frontier.
50% of UK firms with annual turnover above £20m are already operational in Africa and planning expansions.
Another 28% of executives said they are interested but remain cautious about entry strategies.
Africa’s appeal lies in its resource wealth and demographic potential:
30% of the world’s mineral reserves
8% of natural gas reserves
12% of oil reserves
65% of the world’s arable land
Projected to host 25% of the global workforce by 2035
Seven key sectors remain magnets for foreign capital inflows into Nigeria and Africa at large:
1. Technology
2. Oil & Gas
3. Power and Renewable Energy
4. Agriculture
5. Manufacturing
6. Infrastructure
7. Strategic Minerals
Analysts warn that while Nigeria’s reliance on UK-driven inflows reflects strong global confidence, the concentration of sources exposes the economy to external shocks if investor sentiment shifts in these countries.
Diversification of investment partnerships particularly within Asi
a, the Americas, and intra-African trade will be crucial to ensuring long-term resilience in capital inflows.
The United States government has said that Nigeria’s new N70,000 minimum wage has lost real value due to the sharp fall of the naira, leaving millions of workers trapped in poverty.
According to the 2024 Country Reports on Human Rights Practices, released by the U.S. Department of State’s Bureau of Democracy, Human Rights, and Labour, the wage translates to just $47.90 per month.
The report noted that currency devaluation and weak enforcement have undermined the wage increase.
The report also revealed that many states are yet to implement the new wage law. Several governors cited financial challenges as the main excuse.
Even where the law exists, compliance remains poor because of limited labor inspectors and weak oversight from authorities.
Wage Devaluation and Exclusion
The report highlighted that firms with fewer than 25 workers are excluded from the minimum wage law, leaving millions of employees without protection.
This also explained that about 70 to 80 percent of Nigeria’s workforce operates in the informal sector, where wage and labor rights are almost never enforced.
This means a majority of Nigerians continue to earn far below the national benchmark, despite the government’s approval of N70,000 as the new minimum wage.
The U.S. report stressed that the naira’s sharp decline, trading above N1,500 to the dollar, had worsened the wage erosion. This has left workers unable to afford basic needs, pushing many deeper into poverty.
Human Rights and Labor Challenges
The document pointed out that weak enforcement of labor laws contributes to worsening poverty levels in the country.
Workers in the informal sector, such as street vendors, artisans, and small traders, rarely benefit from labor protections.
The report also noted that Nigeria’s minimum wage is rarely sufficient to cover basic food, housing, and transport needs.
This has further exposed structural gaps in the government’s approach to economic reforms and poverty reduction.
Governors Push Investment Platform
Meanwhile, the Nigeria Governors’ Forum (NGF) has launched a new investment initiative called NGF Investopedia.
The platform seeks to attract capital flows into bankable projects across all 36 states, with the goal of tackling Nigeria’s annual $100 billion infrastructure financing deficit.
The launch event in Abuja gathered governors, international partners, and investors. The forum described the platform as a long-term strategy to unlock growth opportunities across states and strengthen Nigeria’s subnational economies.
NGF Chairman and Kwara State Governor, Abdulrahman AbdulRazaq, said Nigeria must urgently leverage its human and natural resources to address poverty and joblessness.
“Here is Africa’s largest economy, endowed with abundant human and natural resources,” he said, stressing that state governments must play a bigger role in attracting investments and supporting local industries.
A Widening Gap
The contrast between the U.S. report on wage decline and the governors’ push for investment highlights Nigeria’s economic paradox.
While authorities promote foreign capital inflow, millions of workers continue to survive on wages that have lost most of their value.
With inflation rising, food prices soaring, and the naira weakening, the gap between earnings and cost of living keeps widening.
Unless enforcement improves and the informal sector is integrated into wage protections, the N70,000 benchmark may remain symbolic rather than effective.
Fidelity Bank may have hit another milestone the Fidelity Naira Card is now accepted globally.
This was disclosed in a message sent to Diaspora Digital Media (DDM) via email on Monday.
According to the statement entitled “Your Fidelity Naira Card Now Works Globally; Shop, Pay and Withdraw with Ease!“, customers can buy favourite global brands online using their Fidelity Naira Card.
The band also stated that they can equally pay at POS terminals abroad and make cash withdrawals at ATMs as they travel.
The message reads:
“We’re excited to let you know that your Fidelity Naira Card is now enabled for global use — so you can shop, spend and withdraw internationally with confidence.
“Here’s what you now enjoy every quarter:
|
Channel |
Transaction Limit |
| ATM Withdrawal abroad | $500 |
| Online/Web & POS Payments | $ 1,000 |
“What does this mean for you?
- Shop your favourite global brands online
- Pay at POS terminals abroad with ease
- Withdraw cash at ATMs when you travel.”
The statement, however, noted that the $1,000 quarterly limit applies to all international transactions combined, including ATM withdrawals, online purchases, and POS payments.
The bank urged customers who may need assistance with setting card limits or activating their cards for global use, to contact the bank’s customers care “Centre Trueserve”, which is available round the clock, whether in Nigeria, or outside the country.
“Your world, your card — spend smart, spend globally with Fidelity,” the message concludes.
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