Month: November 2025

Vice President Kashim Shettima has said that Nigeria is on the threshold of a new era in governance and digital innovation, with the National Digital Economy and e-Governance Bill set to serve as the catalyst for a far-reaching GovTech revolution.

Speaking at the opening ceremony of the Digital Nigeria International Conference and Exhibition 2025 in Abuja, Shettima described the forthcoming law as a landmark reform that will institutionalize smarter governance, promote transparency, and ensure inclusive digital service delivery nationwide.

“Just as the cashless policy unlocked the fintech revolution, this new Bill will unlock the GovTech revolution — ushering in an era of smarter governance, greater transparency, and inclusive service delivery,” the Vice President said.

The National Digital Economy and e-Governance Bill, currently in its final stages of enactment, is designed to modernize how the government interacts with citizens and businesses. The legislation seeks to build a framework for electronic governance, data protection, cybersecurity, and seamless access to public services.

Stabilizing Nigeria’s Economy

Shettima also lauded President Bola Ahmed Tinubu’s economic leadership, stating that the administration has ended “the regimes of volatility and unpredictability” that previously defined Nigeria’s economy.

He noted that the country’s economic stabilization efforts are beginning to yield global recognition, with international credit rating agencies such as Fitch Ratings and Moody’s Investors Service recently upgrading Nigeria’s outlook to “stable.”

According to Shettima, these upgrades confirm investor confidence in the government’s reform agenda. “The phase before us now,” he said, “is to ensure that these macroeconomic gains trickle down to the people — from the kiosks of neighborhood traders to the boardrooms of multinational corporations.”

Three Pillars of Digital Transformation

The Vice President outlined the administration’s digital transformation strategy as resting on three key pillars — People, Infrastructure, and Policy — all aimed at positioning Nigeria as Africa’s most competitive digital economy.

Under the People pillar, Shettima said the government is investing heavily in digital education and capacity building through initiatives like Digital Literacy for All (DL4ALL) and the 3 Million Technical Talent (3MTT) programme. These initiatives are designed to build a generation of digitally skilled Nigerians capable of driving innovation and participating actively in the global knowledge economy.

On Infrastructure, Shettima revealed that the government is rolling out a national broadband “superhighway” to connect every state and ensure equitable digital access. Through flagship projects such as Bridge and Project 774, the aim is to provide high-speed internet connectivity to urban centers and rural communities alike.

“With this infrastructure, startups in Gusau or Makurdi will compete effectively with those in Lagos or Abuja,” he said.

The Policy pillar focuses on creating a stable, innovation-friendly environment. Shettima noted that Nigeria’s success with the cashless economy has already placed the country among the world’s most dynamic fintech hubs. The next frontier, he said, is leveraging automation, artificial intelligence (AI), and data analytics to make government operations more efficient and responsive.

A Digital Future for Public Service

Shettima described the new Digital Economy Bill as the cornerstone of Nigeria’s transition toward a modern, technology-driven public sector. Once enacted, the Bill will streamline government processes, strengthen accountability, and make public institutions more citizen-focused.

“We can no longer apply 20th-century solutions to 21st-century problems,” he emphasized. “Our goal is a digital ecosystem that functions as seamlessly in Lagos as it does in Kano, Port Harcourt, or Gusau — one that guarantees inclusion, competitiveness, and opportunity for all.”

He urged both public and private stakeholders to support Nigeria’s evolution from a digitally reactive nation to a digitally proactive society — one that fosters innovation, inclusion, and sustainable growth.

Legislative Backing and Broader Vision

The House of Representatives has already expressed strong commitment to the Bill, describing it as a cornerstone of Nigeria’s modernization efforts. The legislation aims to provide a comprehensive legal framework for the digital economy, covering areas such as e-transactions, cybersecurity, data governance, and national digital infrastructure.

Once enacted, the Bill is expected to transform how the government operates, how citizens access services, and how Nigeria positions itself in the emerging global digital order — effectively marking the beginning of a GovTech revolution that could redefine governance and service delivery in Africa’s largest economy.

Nigeria’s crude oil sector recorded a steep decline in profitability in 2024, as the country’s gross profit from crude oil and gas sales fell sharply by N824.66 billion, even though total oil receipts and production increased during the year.

According to the Budget Implementation Report for Q4 2024, published by the Budget Office of the Federation, gross profit from oil and gas operations dropped to N1.08 trillion in 2024, compared to N1.90 trillion in 2023 — representing a 43.32% year-on-year decline.

This performance not only highlights the erosion of profitability across Nigeria’s oil value chain but also underscores persistent inefficiencies despite key policy reforms, including the removal of the petrol subsidy and strengthened upstream monitoring systems. The gross profit also fell short of the government’s full-year target of N1.46 trillion by N385.39 billion (26.32%), signaling weaker-than-expected returns from the sector.

Profitability Shrinks Despite Higher Revenue Collection

While gross profit declined, Nigeria’s overall oil and gas receipts increased substantially. Total oil and gas revenue before deductions rose to N15.07 trillion in 2024, up from N8.36 trillion in 2023 — a sharp 80.33% increase.

However, the composition of this revenue reveals a worrying imbalance: gross profit accounted for only 7.2% of total oil and gas income in 2024, compared to 22.8% in the previous year. This means that while the federal government is mobilizing more naira-based revenues, a much smaller proportion of those earnings is translating into pure profit.

Quarterly data reinforce this margin pressure. Gross profit came in at N365.22 billion in Q1, plunged to N161.49 billion in Q2, and then rebounded modestly to N216.58 billion and N335.69 billion in Q3 and Q4, respectively. Still, none of these quarterly results met the budget benchmark of N366.09 billion, and the deep Q2 slump left a hole that subsequent quarters could not fully close.

Oil Taxes, Royalties, and FX Gains Rise Sharply

Underneath the declining profit figures, the broader oil and gas revenue landscape was notably strong. The fiscal system captured more naira revenues from the sector, largely due to currency effects and improved enforcement.

Petroleum Profit Tax (PPT) and gas income surged by 111.56%, rising from N2.84 trillion in 2023 to N6.00 trillion in 2024. Similarly, royalty collections jumped by 179.74%, reaching N6.99 trillion compared to N2.50 trillion the previous year. The increase reflects better metering, improved compliance, and stronger oversight from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Perhaps the most dramatic growth came from exchange gains, which climbed to N4.24 trillion from N791.88 billion, representing a massive 435.93% increase. The naira’s sharp depreciation following foreign exchange reforms significantly inflated the naira value of dollar-denominated oil exports.

Other ancillary revenues also rose strongly. Gas flaring penalties reached N391.26 billion, up from N140.54 billion, while incidental oil revenues — including royalty recovery and marginal field payments — more than doubled to N347.75 billion. These gains highlight the fiscal impact of regulatory tightening and improved revenue tracking.

Rising Costs and JV Structures Erode Profits

Despite higher tax and royalty inflows, the underlying profitability of Nigeria’s oil operations deteriorated. The data suggest that escalating operating costs, legacy joint-venture (JV) obligations, and the structure of production-sharing contracts (PSCs) continue to limit the federal government’s share of oil profits.

Even though deductions for JV cash calls and federally funded upstream projects fell significantly — from N2.45 trillion in 2023 to N156.70 billion in 2024 — the gross profit margin remained thin. The report shows that items such as “Other Federally Funded Upstream Projects,” which cost N1.92 trillion in 2023, dropped to zero in 2024, while JV cash call deductions also disappeared from the books.

Net Oil Revenue Jumps, but Gains May Be Superficial

Thanks to lower deductions and favorable FX conversions, net oil revenue to the federation surged to N12.95 trillion in 2024, up from N4.82 trillion in 2023 — a rise of 168.83%. Similarly, total oil and gas revenue after the 13% derivation to oil-producing states increased by 80.35%, reaching N13.11 trillion compared to N7.27 trillion in the prior year.

However, analysts warn that these headline gains are primarily accounting-based, driven by currency revaluation effects rather than improved efficiency or productivity in the upstream sector. The gap between soaring tax receipts and collapsing profit margins highlights a structural weakness in Nigeria’s petroleum economics — where rising costs, exchange rate distortions, and governance inefficiencies continue to erode real earnings.

As 2025 unfolds, the challenge for policymakers will be translating high nominal oil revenues into sustainable fiscal gains by improving cost efficiency, renegotiating JV frameworks, and accelerating reforms to reduce leakages across the petroleum value chain.

Nigeria’s crude oil sector recorded a steep decline in profitability in 2024, as the country’s gross profit from crude oil and gas sales fell sharply by N824.66 billion, even though total oil receipts and production increased during the year.

According to the Budget Implementation Report for Q4 2024, published by the Budget Office of the Federation, gross profit from oil and gas operations dropped to N1.08 trillion in 2024, compared to N1.90 trillion in 2023 — representing a 43.32% year-on-year decline.

This performance not only highlights the erosion of profitability across Nigeria’s oil value chain but also underscores persistent inefficiencies despite key policy reforms, including the removal of the petrol subsidy and strengthened upstream monitoring systems. The gross profit also fell short of the government’s full-year target of N1.46 trillion by N385.39 billion (26.32%), signaling weaker-than-expected returns from the sector.

Profitability Shrinks Despite Higher Revenue Collection

While gross profit declined, Nigeria’s overall oil and gas receipts increased substantially. Total oil and gas revenue before deductions rose to N15.07 trillion in 2024, up from N8.36 trillion in 2023 — a sharp 80.33% increase.

However, the composition of this revenue reveals a worrying imbalance: gross profit accounted for only 7.2% of total oil and gas income in 2024, compared to 22.8% in the previous year. This means that while the federal government is mobilizing more naira-based revenues, a much smaller proportion of those earnings is translating into pure profit.

Quarterly data reinforce this margin pressure. Gross profit came in at N365.22 billion in Q1, plunged to N161.49 billion in Q2, and then rebounded modestly to N216.58 billion and N335.69 billion in Q3 and Q4, respectively. Still, none of these quarterly results met the budget benchmark of N366.09 billion, and the deep Q2 slump left a hole that subsequent quarters could not fully close.

Oil Taxes, Royalties, and FX Gains Rise Sharply

Underneath the declining profit figures, the broader oil and gas revenue landscape was notably strong. The fiscal system captured more naira revenues from the sector, largely due to currency effects and improved enforcement.

Petroleum Profit Tax (PPT) and gas income surged by 111.56%, rising from N2.84 trillion in 2023 to N6.00 trillion in 2024. Similarly, royalty collections jumped by 179.74%, reaching N6.99 trillion compared to N2.50 trillion the previous year. The increase reflects better metering, improved compliance, and stronger oversight from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Perhaps the most dramatic growth came from exchange gains, which climbed to N4.24 trillion from N791.88 billion, representing a massive 435.93% increase. The naira’s sharp depreciation following foreign exchange reforms significantly inflated the naira value of dollar-denominated oil exports.

Other ancillary revenues also rose strongly. Gas flaring penalties reached N391.26 billion, up from N140.54 billion, while incidental oil revenues — including royalty recovery and marginal field payments — more than doubled to N347.75 billion. These gains highlight the fiscal impact of regulatory tightening and improved revenue tracking.

Rising Costs and JV Structures Erode Profits

Despite higher tax and royalty inflows, the underlying profitability of Nigeria’s oil operations deteriorated. The data suggest that escalating operating costs, legacy joint-venture (JV) obligations, and the structure of production-sharing contracts (PSCs) continue to limit the federal government’s share of oil profits.

Even though deductions for JV cash calls and federally funded upstream projects fell significantly — from N2.45 trillion in 2023 to N156.70 billion in 2024 — the gross profit margin remained thin. The report shows that items such as “Other Federally Funded Upstream Projects,” which cost N1.92 trillion in 2023, dropped to zero in 2024, while JV cash call deductions also disappeared from the books.

Net Oil Revenue Jumps, but Gains May Be Superficial

Thanks to lower deductions and favorable FX conversions, net oil revenue to the federation surged to N12.95 trillion in 2024, up from N4.82 trillion in 2023 — a rise of 168.83%. Similarly, total oil and gas revenue after the 13% derivation to oil-producing states increased by 80.35%, reaching N13.11 trillion compared to N7.27 trillion in the prior year.

However, analysts warn that these headline gains are primarily accounting-based, driven by currency revaluation effects rather than improved efficiency or productivity in the upstream sector. The gap between soaring tax receipts and collapsing profit margins highlights a structural weakness in Nigeria’s petroleum economics — where rising costs, exchange rate distortions, and governance inefficiencies continue to erode real earnings.

As 2025 unfolds, the challenge for policymakers will be translating high nominal oil revenues into sustainable fiscal gains by improving cost efficiency, renegotiating JV frameworks, and accelerating reforms to reduce leakages across the petroleum value chain.

Prominent legal scholar and former President of the Nigerian Bar Association (NBA), Dr. Olisa Agbakoba, SAN, has called for urgent and comprehensive reforms in Nigeria’s land titling system, arguing that it represents the single most transformative policy that could unlock over N1.5 quadrillion in dormant capital and reposition the nation’s economy for sustainable growth.

Speaking in a policy paper titled “Devolution is the Solution: Foundational Reform Agenda for Nigeria’s Transformation,” Agbakoba said that Nigeria’s vast wealth lies not in oil or foreign reserves but in the untapped potential of land and real estate assets currently trapped under informal ownership.

He emphasized that the failure to properly document and legally recognize land ownership has left billions of dollars in “dead capital” — assets that cannot be leveraged, traded, or integrated into the financial system.

“Over 90 percent of land and real estate in Nigeria have tainted, defective, or no titles at all,” Agbakoba said, citing findings from studies conducted by the World Bank, PwC, and his firm, Olisa Agbakoba Legal (OAL). “This creates ‘dead capital’—assets that cannot be traded, serve as collateral, or be indexed to the financial system.”

According to him, this situation mirrors the thesis of Peruvian economist Hernando de Soto, who argued in The Mystery of Capital that converting dead capital into productive assets through formal property rights is one of the most powerful tools for economic transformation in developing countries.

Formal Land Titling as an Economic Game-Changer

Agbakoba stressed that land titling — the process of formally recognizing and recording private property rights — could radically expand access to credit and investment in Nigeria. With formal ownership documents, property holders can use their land or buildings as collateral for loans, unlocking liquidity and empowering individuals and businesses alike.

“Once property owners have legal titles, banks will be more willing to lend because the assets represent secure collateral backed by enforceable rights,” he explained. “This is how nations build credit-based economies that drive wealth creation and industrialization.”

Commendation for Ongoing Federal Reforms

The senior advocate praised the Federal Government’s National Land Registration, Documentation and Titling Programme, which aims to digitize land records and create a transparent national property registry. However, he urged the administration of President Bola Tinubu to accelerate and scale up the project, ensuring full collaboration between federal and state land agencies.

According to Agbakoba, integrating land values into the national financial system through digital mapping, legal harmonization, and unified documentation would lay the groundwork for massive capital mobilization. “This is not just an administrative reform,” he added. “It is a structural economic revolution.”

From a Cash Economy to a Credit Economy

Agbakoba argued that Nigeria must transition from its prevailing cash-based economy to a credit-driven system if it hopes to achieve inclusive and sustained growth. He maintained that a credit economy allows citizens to leverage assets and expand purchasing power beyond immediate cash availability.

“Nigeria operates a cash economy, which limits the economy’s productive potential because people can only buy what they can afford,” he said. “A functional credit system allows individuals to buy, build, and invest in ways that multiply economic activity.”

To illustrate the potential impact, Agbakoba projected that if 200 million Nigerians each accessed N300,000 in credit, the country would inject N60 trillion into circulation — stimulating domestic demand, supporting small businesses, and easing the country’s foreign exchange pressures.

“When citizens can access affordable credit in naira to own homes, start enterprises, or expand production, it strengthens the naira’s real value,” he explained. “It becomes a currency backed not just by policy, but by productivity and confidence.”

Government Commitment to Land Reform

In August, the Minister of Housing and Urban Development, Arc. Ahmed Dangiwa, reaffirmed the Federal Government’s commitment to improving land titling, documentation, and registration across the country. He announced a plan to raise formal land documentation coverage to 50 percent within the next decade, under a national initiative aimed at unlocking the full economic potential of land assets.

Agbakoba welcomed this commitment but emphasized that political will and institutional coordination would determine the reform’s success. “With the right legal framework, Nigeria can turn its vast land resources into bankable wealth,” he concluded. “This is the surest path to financial inclusion, poverty reduction, and genuine national prosperity.”