Month: November 2025

The Ogun State Government has announced an ambitious plan to generate N500 billion in Internally Generated Revenue (IGR) to finance the state’s 2026 fiscal year. The target, which marks one of the most aggressive subnational revenue projections in recent years, underscores the Abiodun administration’s push to build a more economically self-reliant and fiscally sustainable Ogun State.

Governor Dapo Abiodun disclosed the revenue goal during the Treasury Board meeting on the 2026–2028 Medium-Term Expenditure Framework (MTEF) and the 2026 budget session held in Abeokuta. According to him, the government is strategically positioning the state to fully harness its industrial strength, expanding infrastructure, and geographical advantages.

Abiodun said the N500 billion target is not merely a fiscal aspiration but a deliberate plan backed by reforms, policy alignment, and a determination to transform Ogun into Nigeria’s most competitive and efficient subnational economy. “We have set an ambitious target of generating N500 billion in Internally Generated Revenue to finance the 2026 fiscal year, as part of our drive to build a stronger and more self-sustaining Ogun State,” he said.

Long-Term Vision: N750 Billion IGR by 2027

The governor also provided insight into the administration’s long-term revenue plan, noting that the state aims to grow its annual IGR to N750 billion by 2027, the final year of his current tenure. This trajectory, he explained, aligns with Ogun’s stature as one of Nigeria’s top investment destinations and its unique position as Lagos State’s closest industrial and economic neighbour.

He emphasized that Ogun’s vast landmass — spanning more than 16,000 square kilometres — gives the state enough room to attract and accommodate investments that Lagos can no longer host due to space constraints and congestion.

“Ogun must leverage its proximity to Lagos and its vast landmass to achieve this target,” Abiodun said. “Our comparative advantage must be fully harnessed to provide what Lagos cannot offer. Innovation, efficiency, and accountability will be our guiding principles as we strengthen Ogun’s economic base.”

MDAs Directed to Develop Bold Revenue Plans

To meet the 2026 revenue target, Abiodun directed the Ogun State Internal Revenue Service (OGIRS) to contribute at least N250 billion. He also tasked other major revenue-generating agencies — including the Ogun Property Investment Corporation (OPIC), the Bureau of Lands, the Ministry of Education, Science and Technology, and the Ministry of Housing — to upscale their revenue mobilization efforts.

He stressed that every Ministry, Department, and Agency (MDA) must take responsibility by developing “bold, creative, and ambitious” revenue initiatives that align with their mandate and operational realities. According to him, the 2026 budget will be anchored on innovation-driven governance, fiscal discipline, and aggressive revenue expansion.

Infrastructure, Urban Renewal, and Economic Expansion

Beyond revenue plans, Governor Abiodun highlighted several development priorities for the coming fiscal cycle, including urban renewal and accelerated infrastructure development. A major focus will be the regeneration of Kara, near Isheri, a corridor that serves as one of the busiest entry points into the state from Lagos.

The governor said the redevelopment of Kara would give the axis a modern and befitting look consistent with Ogun’s reputation as the Gateway State. To ensure fairness and transparency, he announced the creation of an inter-ministerial committee that will oversee enumeration, compensation, and relocation processes for affected individuals and businesses.

According to Abiodun, the state is determined to execute the redevelopment in a way that is both humane and inclusive, ensuring that growth does not come at the expense of residents’ welfare.

“We remain focused on building a prosperous, modern Ogun State — one that reflects the ambition, discipline, and resilience of its people,” he added.

What You Should Know

Ogun has become one of Nigeria’s fastest-growing industrial zones, attracting investments across manufacturing, real estate, agriculture, logistics, and technology. In October 2025, Stellar Steel Company Limited, a subsidiary of China’s Galaxy Group and RSIN Group, signed a landmark agreement with the federal government to establish a $450 million steel plant in the state. The facility, expected to begin operations by mid-2026, will produce hot-rolled coil steel, iron doors, and gas cylinders — significantly reducing Nigeria’s dependence on imported steel products.

As Ogun pushes toward its N500 billion IGR target, the state’s success will depend on how effectively it leverages its industrial appeal, improves internal revenue systems, closes leakages, and sustains investor confidence. The coming fiscal year will test the depth of its reforms — and the strength of its ambition.

The Manufacturers Association of Nigeria (MAN) has cautioned that the planned ban by the National Agency for Food and Drug Administration and Control (NAFDAC) on the production and sale of alcoholic beverages in sachets and small PET bottles could have devastating economic consequences.

According to the Association, the policy—scheduled to take effect on December 31, 2025—could result in the loss of over ₦1.9 trillion worth of investments and threaten the livelihoods of more than five million Nigerians, including both direct and indirect workers across the country’s manufacturing value chain.

In a statement issued in Lagos, Segun Ajayi-Kadir, Director General of MAN, described the ban as “economically reckless and procedurally flawed,” warning that it would cripple indigenous enterprises that have invested heavily in the segment and undo years of industrial progress in Nigeria’s beverages sector.

Lack of Consultation and Policy Inconsistency

Ajayi-Kadir criticized both the Senate and NAFDAC for what he called a hasty and unilateral decision, noting that the Senate’s November 6 resolution contradicts the consensus reached among key stakeholders during the validation of the National Alcohol Policy held in October 2025.

He explained that the validated policy had recommended a multi-sectoral approach—not an outright ban—to tackle alcohol abuse while preserving legitimate business operations. The plan included tighter enforcement of existing regulations, licensing of retail liquor outlets, and sustained public education on the risks of excessive drinking, especially among minors.

“During the policy validation process, stakeholders agreed on a national framework that balances public health priorities with economic realities,” Ajayi-Kadir said. “The Senate’s recent resolution disregards that consensus and undermines confidence in regulatory consistency.”

He added that the industry had anticipated a one-year transition period for full implementation of the policy, not an immediate cessation that would destabilize manufacturing operations and supply chains.

Threat to Jobs and Industrial Output

MAN warned that enforcing the ban could reverse the fragile recovery currently seen in the manufacturing sector, which has been gradually improving amid challenging economic conditions.

“The pronouncement will have serious consequences for the now stabilizing economy,” the statement said. “It threatens over ₦1.9 trillion in investments—mostly from local companies—could trigger mass retrenchment of more than 500,000 direct employees and an additional five million indirect workers, and reduce capacity utilization in a sector that is finally showing signs of rebound.”

Ajayi-Kadir noted that sachet and small-bottle packaging were introduced as affordable innovations for low-income adult consumers, allowing responsible consumption in controlled portions. Eliminating them, he warned, would remove a viable product category without addressing the root causes of misuse.

Risk of Illicit Trade and Consumer Harm

MAN also expressed concern that a blanket ban could fuel the growth of illicit and unregulated alcohol markets, exposing consumers to dangerous, unverified products.

“The alcoholic beverages produced by regulated local manufacturers are NAFDAC-certified and meet established safety standards,” Ajayi-Kadir explained. “Once legitimate products are banned, consumers will turn to unsafe alternatives that operate outside any regulatory oversight.”

He warned that such a scenario would not only endanger public health but also deprive the government of valuable tax revenue and worsen Nigeria’s trade imbalance, as smuggled foreign brands fill the void created by the ban.

A Call for Balanced Regulation

Rather than imposing a prohibition, MAN urged both the Senate and NAFDAC to revisit the validated National Alcohol Policy and implement its structured recommendations. These include stricter enforcement, responsible advertising, public awareness campaigns, and community-level education.

Ajayi-Kadir emphasized that the industry remains committed to promoting responsible consumption, revealing that manufacturers have collectively invested over ₦1 billion in national campaigns against underage drinking and alcohol misuse.

“The ban will not solve the problem—it will only destroy legitimate businesses and push the trade underground,” he said. “What Nigeria needs is smart regulation, not prohibition.”

Background

NAFDAC’s Director General, Professor Mojisola Adeyeye, had earlier announced that the agency would enforce a total ban on alcoholic beverages packaged in sachets and small bottles below 200 millilitres by December 2025. She cited concerns about the accessibility of such drinks to minors and commercial drivers, as well as rising cases of addiction and health-related incidents.

However, industry stakeholders argue that the agency’s approach disregards the economic realities of local producers and consumers. As the debate intensifies, the coming months will determine whether Nigeria chooses a path of balanced reform—or faces the fallout of an abrupt policy shift that could reshape its manufacturing landscape.

Nigeria’s Ministry of Finance Incorporated (MOFI) has taken another bold step toward bridging the nation’s housing deficit with the official listing of its N1 trillion MOFI Real Estate Investment Fund (MREIF) on the Nigerian Exchange Group (NGX). The landmark event, held in Lagos, drew senior government officials, capital market leaders, and private sector investors, highlighting a renewed national commitment to harnessing capital market mechanisms for inclusive economic development.

The listing represents the second series of the MREIF, featuring one billion units priced at N100 each. It is designed as a strategic vehicle to mobilize long-term private and institutional capital into Nigeria’s housing and infrastructure sectors. Beyond its financial significance, the initiative reinforces the Federal Government’s broader goal of using innovative, market-based models to address critical social and economic challenges.

A Transformative Moment for Nigeria’s Capital Market

Speaking at the ceremony, Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, described the listing as a “transformative moment” for Nigeria’s capital market and its social development agenda. According to him, the MREIF embodies the administration’s Renewed Hope Agenda, which seeks to channel private funds into sectors that create jobs, improve living standards, and drive sustainable growth.

“The MREIF represents a transformative approach to affordable housing—mobilizing private and institutional capital into the housing sector, creating jobs, and stimulating economic growth,” Edun said. He added that the fund’s AAA rating from Agusto & Co and AA from GCR demonstrates investor confidence in both the initiative and Nigeria’s financial system.

Driving Growth through Public-Private Collaboration

At the core of the MREIF’s model is a Public-Private Partnership (PPP) framework that combines government policy direction with market efficiency. The Fund will channel long-term financing into the housing sector, offering investors a credible platform for both financial returns and social impact.

Dr. Shamsuddeen Usman, Chairman of MOFI’s Board, hailed the Fund’s listing as a defining step in unlocking real estate as a key driver of inclusive economic growth. “The MREIF is more than an investment instrument—it is a catalyst for inclusion and shared prosperity,” he said.

He explained that beyond its financial appeal, the Fund is structured to deliver measurable social outcomes, including expanding access to affordable housing and supporting Nigeria’s construction and mortgage value chains. Since becoming operational in May 2025, the Fund has already facilitated over 1,000 mortgages, demonstrating its immediate impact and scalability potential.

Building Investor Confidence and Financial Sustainability

Delivering his remarks, Dr. Armstrong Ume Takang, Managing Director and CEO of MOFI, emphasized that the MREIF aligns perfectly with the government’s strategic investment vision to deploy capital for national transformation.

“This listing underscores MOFI’s mission to deploy capital strategically for national transformation,” he said. “The MREIF is designed to provide long-term, low-cost mortgage financing, making homeownership a reality for millions of Nigerians while stimulating local economies.”

Dr. Takang also commended the Securities and Exchange Commission (SEC), the Nigerian Exchange (NGX), and other transaction partners for their role in structuring the Fund to meet international standards of transparency, governance, and sustainability.

Expanding Access and Creating Opportunity

The NGX listing is expected to boost liquidity and visibility for the Fund, offering opportunities to both institutional and retail investors—including Nigerians in the diaspora. The platform’s disclosure and governance framework will also enhance accountability and investor protection, strengthening overall confidence in the market.

According to Dr. Usman, the listing is “more than a financial milestone—it is proof that policy, capital, and purpose can intersect to deliver real impact.” He noted that MOFI’s collaboration with both private and public stakeholders marks a new chapter in Nigeria’s pursuit of economic inclusiveness through strategic investment.

A Market-Driven Path to Homeownership

The MOFI Real Estate Investment Fund (MREIF) is a government-backed yet market-driven initiative providing affordable mortgage financing at a competitive interest rate of 9.75%, with a maximum tenure of 20 years and a minimum equity contribution of 10%. By blending policy support with private sector participation, the Fund seeks to make homeownership more accessible and sustainable for Nigerians across income levels.

Ultimately, the MREIF’s listing on the NGX marks a defining moment for Nigeria’s real estate and financial markets—signaling that the country is ready to use innovative financial instruments not just to build houses, but to build futures.