In a significant demonstration of its commitment to alleviating hunger and supporting vulnerable communities, leading financial institution, Fidelity Bank Plc, has provided food relief to more than 1,000 Internally Displaced Persons (IDPs) in Mangu Local Government Area of Plateau State through its Fidelity Food Bank Initiative.

The humanitarian outreach, conducted in collaboration with the Plateau State Sustainable Development Goals (SDGs) Office and supported by the ABBASID Charity Foundation, delivered essential food items including rice, noodles, and tomatoes to displaced families currently residing in transit camps across the community.

Speaking during the distribution exercise, Divisional Head, Brand and Communications, Fidelity Bank Plc, Dr Meksley Nwagboh, reaffirmed the bank’s dedication to supporting communities through impactful social interventions.

“The Fidelity Food Bank Initiative was conceived as a way of giving sustenance to the society and supporting vulnerable groups across Nigeria. Today, we are delighted to be in Mangu to extend this support to families affected by displacement. We hope this intervention helps nourish households and contribute to reducing the burden of hunger currently affecting them,” he said.

The intervention forms part of Fidelity Bank’s Corporate Social Responsibility (CSR) programme aimed at addressing food insecurity and providing critical support to vulnerable populations facing economic hardship and displacement. Nwagboh noted that the Fidelity Food Bank has become a key platform through which the bank contributes to national efforts aimed at reducing hunger and improving the welfare of underserved communities across the country.

Also speaking at the event, Mrs. Nanbam Danjuma-Lot, Project Coordinator of the Plateau State Sustainable Development Goals (SDGs), described the intervention as timely and impactful given the challenges faced by families living in IDP camps.

“Following the attacks and destruction experienced by these communities in recent years, many families continue to face significant hardship. We are pleased to partner with Fidelity Bank and other humanitarian organizations to bring succor to those affected. This reflects our collective commitment to supporting affected persons and helping them rebuild their lives,” she stated.

The Founder of ABBASID Charity Foundation, Mrs. Hauwa Abbas, highlighted the importance of strategic partnerships in addressing food insecurity across Nigeria.

“Our collaboration with Fidelity Bank has enabled us to extend food support to vulnerable communities nationwide. So far, we have reached between 32 and 40 communities across the country, providing much-needed assistance to families affected by hunger and economic hardship,” she stated.

Responding on behalf of beneficiaries, Mr. Titus Abednago, Village Head of Changal Community, expressed profound appreciation to Fidelity Bank, the Plateau State Government, and other partners for their support.

“This intervention has brought hope and relief to many families. We sincerely thank Fidelity Bank and all stakeholders for remembering our people during these challenging times. We also appeal for continued efforts to restore lasting peace so that our people can return to their farms and rebuild their livelihoods,” he said.

Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 10 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.

The Bank is a recipient of multiple local and international awards, including the 2025 Development Bank of Nigeria (DBN) Innovation Award for MSME support; Best Retail and SME Bank Award from Independent Newspapers; Best Bank for Export & Trade Finance and Most Innovative Bank of the Year at the 2025 BusinessDay Banks and Financial Institutions (BAFI) Awards; and Nigeria’s Best Private Bank at the 2025 Euromoney Awards. The Bank also received the inaugural Most Improved Commercial Bank of the Year award by Nairametrics, the SME Bank of the Year award by NewsDirect, and the Straight-Through Processing (STP) Excellence Award by Citi Group, in addition to recognition by Global Brands Magazine for Excellence in Community Empowerment.

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FCMB Group Plc has delivered one of the strongest financial performances in its history, posting a remarkable 141.72 per cent increase in Profit After Tax (PAT) to ₦177.27 billion for the financial year ended December 31, 2025. The exceptional earnings have attracted widespread attention across Nigeria’s financial markets, with analysts describing the results as compelling evidence that the Group has successfully converted strategic capital raising into sustainable profitability, stronger operational efficiency and enhanced shareholder value.

The audited financial statements indicate that the financial holding company has entered a new phase of growth, transitioning from capital accumulation to earnings acceleration following the successful deployment of proceeds from its ₦147.5 billion public offer completed in 2024. The impressive performance reinforces FCMB’s position as one of Nigeria’s fastest-improving financial institutions and demonstrates the effectiveness of its long-term transformation strategy.

Independent investment research firm Proshare described the 2025 financial performance as a strategic inflection point in FCMB’s corporate journey. According to the analysts, the triple-digit profit growth validates management’s ability to improve capital productivity by translating fresh equity into stronger earnings, enhanced balance-sheet strength and improved returns for shareholders. They noted that the results represent one of the most consequential performances recorded by the Group in recent years.

The Group’s gross revenue expanded by 42.46 per cent to exceed ₦1.13 trillion, while interest income surged by 61.68 per cent, crossing the ₦1 trillion milestone for the first time in FCMB’s history. Analysts attributed the growth to improved asset deployment, stronger lending activities, higher-yield investment assets and favourable market conditions that boosted earnings across the Group’s core businesses.

Profit Before Tax also climbed by 80.62 per cent to ₦202.10 billion, while the Group’s net interest margin improved significantly from 6.30 per cent to 9.50 per cent. Net profit margin strengthened from 9.23 per cent to 15.66 per cent, reflecting improved efficiency in converting revenue into bottom-line profit and demonstrating stronger synergy across the Group’s banking operations.

Experts Say Capital Productivity Is Driving Sustainable Growth

Reacting to the results, financial experts said FCMB’s performance illustrates how disciplined capital deployment can transform fresh equity into sustainable earnings growth.

Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), said the results underscore the importance of efficient capital allocation.

“Capital raising is only the beginning. Sustainable value comes from management’s ability to deploy those funds efficiently into productive assets that generate consistent returns. FCMB’s latest results suggest that management has made significant progress in achieving that objective.”

According to him, the Group’s performance also demonstrates prudent treasury management and effective balance-sheet optimisation at a time when Nigerian banks are strengthening their capital positions under evolving regulatory expectations.

Capital market analyst Ambrose Omordion, Chief Operating Officer of InvestData Consulting Limited, said FCMB’s financial performance reflects growing investor confidence in institutions that combine capital strength with disciplined execution.

He noted that the Group’s earnings profile, improved margins and stronger operational metrics position it favourably among Nigeria’s tier-two banking institutions and provide additional confidence for long-term investors.

Operational Efficiency Emerges as a Major Strength

Beyond the strong earnings performance, analysts identified FCMB’s improving operational efficiency as one of the defining highlights of the 2025 financial year.

According to Proshare Analysts, the Group demonstrated strong positive operating leverage by growing revenue faster than operating expenses despite Nigeria’s inflationary environment. Although personnel costs, technology investments and regulatory compliance expenses increased during the year, FCMB successfully reduced its cost-to-income ratio from 59.90 per cent to 53.75 per cent, reflecting disciplined execution of management’s operational strategy.

The analysts further explained that total operating income increased by nearly 60 per cent to ₦611.11 billion, comfortably outpacing the 43.41 per cent rise in operating expenses. This enabled the Group to absorb inflationary pressures while delivering stronger profitability, improved efficiency and a more resilient operating model. They added that sustaining this positive operating leverage would be critical to maintaining earnings momentum and increasing shareholder value in the years ahead.

Industry observers note that improving operational efficiency has become one of the most important indicators used by institutional investors when evaluating banking stocks. FCMB’s ability to expand income while maintaining cost discipline reinforces confidence in the Group’s strategic direction and strengthens its investment appeal ahead of the 2026 financial year.

Mrs. Yemisi Edun, Managing Director

Public Offer Begins Delivering Strong Returns

Another major highlight of the financial year was the successful utilisation of proceeds from FCMB’s ₦147.5 billion public offer, which was 33 per cent oversubscribed.

According to Proshare, management moved quickly to deploy the new capital into high-yield investment securities and other income-generating assets instead of allowing the funds to remain idle. This strategic deployment substantially enhanced earnings and strengthened capital productivity.

Interest income from cash and cash equivalents rose dramatically to ₦145.33 billion, compared with ₦12.80 billion in the previous year, while total investment securities expanded by 71.15 per cent to ₦2.04 trillion. Analysts described these figures as clear evidence that FCMB’s capital deployment strategy is producing measurable financial returns.

Prof. Uche Uwaleke, Professor of Capital Market at Nasarawa State University, Abuja, said the Group’s performance validates investors’ confidence in the 2024 public offer.

According to him, shareholders expect institutions raising fresh equity to convert those funds into sustainable earnings, stronger regulatory capital and long-term value creation.

Prudent Risk Management Supports Long-Term Stability

Despite the impressive earnings growth, FCMB maintained a conservative approach to risk management.

Loan impairment charges increased by 98.12 per cent to ₦81.71 billion, reflecting management’s deliberate strategy of strengthening provisions against potential macroeconomic uncertainties and preserving balance-sheet resilience. Proshare said the conservative provisioning approach demonstrates prudent corporate governance and reinforces confidence in the sustainability of the Group’s earnings trajectory.

Retail Banking Continues to Strengthen Funding Base

The Group also recorded significant progress in improving the quality of its funding structure.

Its Current Account and Savings Account (CASA) ratio increased to 65.41 per cent, while retail deposits expanded to ₦2.87 trillion. Savings deposits rose to ₦1.32 trillion, current account balances reached ₦1.57 trillion, and reliance on expensive wholesale funding declined, reducing the overall cost of funds even in a high-interest-rate environment.

Financial analyst Bismarck Rewane, Managing Director of Financial Derivatives Company Limited, has consistently maintained that a strong retail deposit franchise provides banks with cheaper and more stable funding, enabling them to support sustainable lending growth and protect profitability during periods of monetary tightening. FCMB’s expanding retail deposit base aligns with this widely recognised principle of banking strategy.

Outlook Remains Positive

Looking ahead, analysts believe FCMB’s future performance will depend on its ability to sustain operational efficiency, deepen digital transformation, expand quality lending, strengthen retail banking and maintain disciplined capital allocation.

According to Proshare, successful execution of these strategic priorities is expected to support stronger earnings, improve market valuation and deliver sustained shareholder value in the coming years.

For investors and market participants, FCMB’s FY2025 performance represents far more than a year of record profits. It reflects the emergence of a stronger, more efficient and better-capitalised financial institution that is successfully converting strategic investments into sustainable growth.

As Nigeria’s banking industry advances into a new era of higher capital requirements and intensified competition, FCMB Group’s record ₦177.27 billion profit stands as a compelling example of how prudent leadership, disciplined execution, effective capital deployment and operational excellence can create enduring value for shareholders, customers and the Nigerian economy.

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By The Ameh News
Nigeria is set to host one of Africa’s most influential economic policy gatherings as the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, and the Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, lead a landmark fireside dialogue at the 7th Africa Emerging Markets Forum (AEMF) in Abuja on July 29–30, 2026.
Hosted by the Central Bank of Nigeria (CBN) in partnership with the Emerging Markets Forum (EMF) and the Centre for the Study of the Economies of Africa (CSEA), this year’s forum comes at a defining moment for African economies facing persistent inflation, slowing global growth, debt vulnerabilities, exchange-rate pressures, climate-related shocks and growing geopolitical uncertainties.
With the theme “Building Resilience Amidst Geoeconomic Uncertainties,” the conference will assemble central bank governors, finance ministers, policymakers, development finance institutions, academics, economists, investors and business leaders from across Africa and the global emerging-market community to identify practical solutions for sustainable and inclusive economic growth.
The centrepiece of the event will be the much-anticipated strategic conversation between Cardoso and Okonjo-Iweala, two globally respected economic leaders whose experience in monetary policy, international trade, financial reforms and global economic governance is expected to provide valuable insights into Africa’s next phase of economic transformation.
Observers believe the dialogue will explore how African nations can preserve macroeconomic stability while accelerating industrialisation, expanding intra-African trade, improving productivity, attracting long-term investment and strengthening regional value chains in an increasingly fragmented global economy.
The forum will also feature keynote addresses by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, and the Minister of Science, Technology and Innovation, Dr. Kingsley Udeh, reflecting the growing importance of aligning fiscal, monetary, innovation and technology policies to support sustainable development across Africa.
Other distinguished participants include Indermit Gill, Chief Economist and Senior Vice President for Development Economics at the World Bank Group; Harinder Kohli, Founder and Chief Executive of the Emerging Markets Forum; and Professor Adamu Ahmed, Vice-Chancellor of Ahmadu Bello University, alongside senior policymakers, development partners and private-sector leaders from around the world.
Discussions over the two-day summit will cover macroeconomic stability, regional integration, digital payments, financial technology (FinTech), infrastructure financing, foreign direct investment, artificial intelligence, technology transfer, food security, inflation management and monetary policy transmission in fragile and post-crisis economies.
Experts Highlight Strategic Importance
Economic experts say the forum arrives at a time when Africa requires stronger policy coordination to withstand external shocks and unlock its enormous economic potential.
Development economist Prof. Ken Ife noted that Africa’s long-term prosperity depends on strengthening institutions, improving infrastructure, accelerating industrialisation and creating a business environment capable of attracting both domestic and international investment.
Former Director-General of the Lagos Chamber of Commerce and Industry, Dr. Muda Yusuf, observed that maintaining macroeconomic stability, reducing inflation, improving foreign exchange liquidity and enhancing investor confidence remain fundamental to sustaining economic growth across emerging markets.
Financial analyst Bismarck Rewane said deeper regional trade integration, supported by efficient payment systems and policy consistency, would significantly enhance Africa’s competitiveness under the African Continental Free Trade Area (AfCFTA).
Analysts also believe that the participation of the WTO Director-General signals growing international confidence in Africa’s ability to become a stronger contributor to global trade, particularly if governments continue implementing reforms that improve productivity, competitiveness and the ease of doing business.
Why the Emerging Markets Forum Matters
The Emerging Markets Forum has evolved into one of the world’s foremost independent platforms for dialogue on development policy and economic reform. It brings together current and former heads of state, central bank governors, finance ministers, leading economists, business executives and development partners to exchange ideas on addressing the complex challenges confronting emerging and developing economies.
For Nigeria, hosting the forum reinforces its strategic position as one of Africa’s largest economies and demonstrates the CBN’s commitment to promoting evidence-based policymaking, regional cooperation and financial stability.
The meeting is also expected to strengthen collaboration between governments, multilateral institutions, development finance organisations and the private sector in mobilising capital for infrastructure, expanding digital financial inclusion, accelerating innovation and supporting sustainable economic development.
A Defining Moment for Africa
According to the organisers, the forum aims to foster open dialogue on issues of strategic importance while identifying practical policy solutions tailored to the realities of emerging and developing economies.
As global economic conditions continue to evolve, expectations are high that the Abuja forum will produce actionable recommendations capable of helping African countries build more resilient economies, deepen regional integration, expand trade and investment, create quality jobs and deliver inclusive prosperity for future generations.
With the combined expertise of the Central Bank of Nigeria, the World Trade Organization, the Emerging Markets Forum and leading development institutions, the 7th Africa Emerging Markets Forum is widely expected to shape important conversations on Africa’s economic future and reinforce the continent’s role in the global economy.
SAfrica Emerging Markets Forum 2026, Olayemi Cardoso, Ngozi Okonjo-Iweala, CBN, WTO, Abuja, African economy, emerging markets, inflation, regional integration, AfCFTA, monetary policy, investment, economic resilience, sustainable growth.

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Chairman of Fidelity Bank Plc, Mrs. Amaka Onwughalu, has been honoured as Woman of the Year at the 5th Edition of the Anambra Man of the Year Awards (AMTY) in recognition of her outstanding contributions to Nigeria’s banking industry, corporate governance, leadership and service to society.

The award ceremony, held at the Stanel Dome Conference Centre, Awka, Anambra State brought together distinguished business leaders, academics, captains of industry and public figures to celebrate individuals and institutions whose achievements continue to shape business, governance, academia, public service and community development. The event was chaired by Prof. Joe Ezigbo, Founder of Falcon Corporation, while Prof. Bond Anyaehie, Vice Chancellor of Nnamdi Azikiwe University, Awka, delivered the keynote address themed, “Unstoppable Anambra, Leveraging Human Capital for Global Impact.”

Mrs. Onwughalu, who was appointed Chairman of the Board of Fidelity Bank effective January 1, 2026, joined the bank’s Board in December 2020. She has over 32 years of experience in financial services and has held senior leadership positions across leading institutions, including serving as Group Managing Director of legacy Mainstreet Bank Limited and Deputy Managing Director of Skye Bank Plc.

In her acceptance speech, she described the honour as deeply meaningful, noting that the recognition reinforced the values that have shaped her journey.

“I have been privileged to receive several honours over the course of my career. However, to be recognised by my home state makes this award especially meaningful. It reminds me of the values that have guided my journey such as integrity, resilience, service and excellence,” she said.

She dedicated the award to the mentors, colleagues, teams and institutions that have supported her career, adding that leadership is built on trust, shared responsibility and collective commitment.

“I am especially grateful to the Board, Management and staff of Fidelity Bank Plc. It is a privilege to serve as Chairman of a bank that continues to place strong governance, customer focus and sustainable growth at the heart of its operations,” she added.

Mrs. Onwughalu also expressed hope that the recognition would inspire more young people, especially young women, to pursue their dreams with courage, discipline and confidence.

Other awardees at the ceremony included High Chief Anthony Ikenna Obele, Chairman of Mekens Integrated Nigeria Ltd, who was named Business Icon of the Year, and Most Rev. Dr. Valerian Maduka Okeke, Metropolitan Archbishop of Onitsha, who received the Person of the Decade Award.

Also recognised were Dr. Chioma Irene Awuzie, Rector of Federal Polytechnic, Oko, who was named Public Servant of the Year, Prof. Stella Okunna, who received a Lifetime Achievement Award, Joy Egolum, Corporate Affairs Manager, East, Nigerian Breweries Plc, who was honoured as Corporate Leader of the Year, and Chinyere Moneme, SAN, who was named Inspiring Woman of the Year.

In his remarks, Prof. Ezigbo described the AMTY Awards as society’s acknowledgement that excellence, character and service matter, adding that celebrating people while they are alive helps encourage them to continue doing good and inspires others to follow their example.

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A look at the Central Bank’s drive to bring every Nigerian into the formal economy — and why the finish line keeps moving*

In a market in Brass, a fishing town tucked into the creeks of Bayelsa State, a trader sells smoked fish to customers who tap their phones to pay rather than count out naira notes. Scenes like this, once rare outside Lagos and Abuja, are becoming more common across Nigeria. An evidence that the Central Bank of Nigeria (CBN) applaud ythat its decade-long push for financial inclusion is finally gaining real traction. Yet for every market woman now banking digitally, millions more remain locked out of the formal financial system entirely.

The CBN’s financial inclusion journey began in earnest in 2012 with the launch of the National Financial Inclusion Strategy (NFIS), which set an ambitious goal to significantly reduce the financially excluded adults to 20 percent by 2020. The strategy focused on expanding access to financial services through mobile banking, agent banking, microfinance, and other channels.

It didn’t work out that way. By the 2020 deadline, the headline inclusion figure stood at 64.1 percent, short of the 80 percent target the bank had set for itself under a later revision of the strategy. Breaking the numbers down revealed that payments services had reached only 45 percent of adults against a 70 percent target, savings stood at 32 percent against 60 percent, credit access languished at three percent against a 40 percent goal, insurance at two percent, and pensions at seven percent.

The bank revised its ambitions rather than abandon them. Under NFIS 3.0, the target became reducing exclusion to 25 percent by 2024 and here, the story brightens considerably. A 2023/2024 survey by Enhancing Financial Innovation and Access (EFInA) found formal financial inclusion had risen to 64 percent, up from 56 percent in 2020, while other tracking put the figure as high as 74 percent. Speaking at the time, CBN Governor Olayemi Cardoso described Nigeria’s financial inclusion drive as a long and sometimes arduous journey, admitting the bank had at times worried about the slow pace of progress.

But even celebrated gains come with a sobering footnote. EFInA’s chair, Dr Agnes Martins, welcomed the progress while stressing that a 26 percent exclusion rate still means 28.8 million adult Nigerians, a population roughly the size of Ghana remain shut out of the financial system.

Undeterred by years of missed deadlines, the CBN has now set its sights even higher. At a recent fintech and inclusion event, Cardoso unveiled “Vision 2028,” declaring that by 2028, every Nigerian, from Birnin Kebbi to Brass and Badagry to Baga, should be able to send and receive money faster than they can blink, with inclusion rather than exclusion as the watchword.

Concretely, the governor wants inclusion to reach 95 percent, which would bring 15 million more market women, farmers, and young people into the formal financial fold, and he insisted that cash should no longer define who gets to participate in the economy.

Cardoso also used the occasion to make a point about narrative ownership, urging Nigerians to project their fintech achievements globally and warning that if the country doesn’t tell its own story, others will tell it in less flattering terms.

Now, What’s really Driving forces behind the much anticipated gains? Several initiatives explain the recent upward trend like the Agent banking networks, The Shared Agent Network Expansion Facility (SANEF) has been central to reaching rural and semi-urban locations. In a recent review 69,094 new agents were onboarded, bringing the total to over 2 million and pushing access points to 1,903 per 100,000 adults. Combined with Payment Service Banks (PSB) and mobile money operators (MMO), these networks now extend across all 774 local government areas in the country.

Also, Governance structures put in place to drive the financial inclusion initiatives have significantly impactful. The National Financial Inclusion Secretariat operates through a Steering Committee chaired by the Governor, a Technical Committee chaired by the Deputy Governor for Financial System Stability, and four working groups covering products, channels, literacy, and interventions have brought coordination to what had often been a fragmented effort.

Rapid developments in the Fintech sub-sector are responsible for the growth being witnessed the inclusion drive. A recent CBN fintech report framed regulatory modernization as inseparable from inclusion goals, noting that improved currency and economic stability now make it clearer than ever that financial innovation can advance inclusion at scale, while acknowledging gaps remain in regulatory frameworks, payments infrastructure, and support for startups.

The place Mobile phone penetration cannot be downplayed as the spread of smartphones continues to be the single biggest enabler thereby reducing reliance on physical bank branches and making digital banking and payment solutions accessible even in remote areas.

However, some noticeable pitfalls still exist in the forms of gender and rural-urban divide. An analysis of Global Findex data spanning 2011 to 2021 found that despite real advances in formal account ownership and digital service use, exclusion gaps along gender, rural-urban, and digital lines remain prominent. An indication that the inclusion gains have not been evenly shared. Women, rural dwellers, and the poorest Nigerians continue to lag behind.

Tangential to the above is the most accounts opened don’t do much as having a bank account is not the same as using the financial system productively. The same research noted that while formal accounts are increasingly used for savings, real barriers persist around using those accounts for borrowing and sending remittances. This gap shows up in the CBN’s 2020 numbers, where credit penetration sat at just three percent against a 40 percent target.

Stringent Know Your Customer (KYC) rules, while necessary for security, have an unintended cost for identification and documentation. Strict KYC requirements sometimes exclude individuals who lack the required identification documents in the first place. A particular problem in a country where national ID coverage is still incomplete after several decades.

Way forward for a more Inclusive System should by going beyond infrastructure to literacy and trust. As one payment service bank executive put it, true inclusion requires going further than agent networks — accelerating investment in nationwide digital infrastructure, enhancing financial literacy, developing solutions in local languages, and designing products that are intuitive and affordable.

Meanwhile, in order to Deepen credit and insurance access beyond payments only, the seemingly lopsided progress which is strong in payments but weak in credit and insurance, the next phase needs products tailored to farmers and small traders who need working capital and risk protection, not just a place to receive transfers.

The identity gap must be closed by Linking national identity enrollment campaigns directly to account-opening drives to remove one of the most persistent barriers to entry for the undocumented poor.

Generic inclusion campaigns target must women and rural dwellers to close the gender and geographic gaps in addition to Sustaining multi-sector collaboration. Because Achieving comprehensive financial access will require continued partnerships across private companies, NGOs, and public institutions to drive innovation and broaden service delivery — a recognition that the CBN cannot do this alone.

In conclusion, as millions of adults still are outside the formal system, and with credit, insurance, and rural-gender gaps still wide, Vision 2028’s 95 percent target will test whether Nigeria’s financial system can finally convert access into genuine economic opportunity.

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The proposal, if approved by the National Assembly after consultations with organised labour, employers and other stakeholders, would mark one of the most significant reforms to Nigeria’s Contributory Pension Scheme (CPS) since the Pension Reform Act was enacted over a decade ago.

PenCom Director-General, Ms. Omolola Oloworaran, disclosed the development while addressing participants at the 2026 Pension Consultative Forum for States, the Federal Capital Territory (FCT) and Licensed Pension Fund Operators (LPFOs) held in Lagos.

Currently, employers contribute a minimum of 10 per cent of an employee’s monthly emoluments, while employees contribute 8 per cent, making a combined statutory contribution of 18 per cent. PenCom believes the existing rate may no longer be adequate to guarantee comfortable retirement benefits amid rising inflation and increasing life expectancy.

Why PenCom Wants Higher Contributions

According to Oloworaran, discussions are already underway with organised labour, lawmakers and other stakeholders on proposed amendments designed to improve retirement security for millions of Nigerian workers.

She explained that while the Commission has resolved that contribution rates should be increased, broad consultations are necessary to ensure consensus before the proposal is formally presented.

“We are engaging Labour, the National Assembly and all relevant stakeholders on the review of the Pension Reform Act. The contribution rates will certainly increase, but we must carry everyone along.”

Industry observers say increasing pension contributions would significantly boost workers’ retirement savings while providing additional long-term capital for infrastructure development and economic growth.

Only Eight States Fully Complying with Pension Law

The PenCom boss expressed dissatisfaction with the slow implementation of the Contributory Pension Scheme across Nigeria’s 36 states.

According to her, only eight states are fully operating the CPS in accordance with the law.

She described the level of compliance as unacceptable, stressing that governors must prioritise workers’ welfare beyond their years in office.

“If I were to score the level of compliance, it would still be an F9. Governors must think beyond today and ensure workers enjoy financial security after retirement.”

She urged all state governments to migrate fully to the CPS to eliminate the recurring pension crises associated with the old Defined Benefits Scheme.

PenCom Targets Sustainable Funding for State Pension Bureaus

To encourage wider adoption of the CPS, PenCom also revealed plans to establish sustainable income streams for state pension bureaus.

Several states have argued that inadequate funding and administrative challenges have slowed implementation of the pension scheme.

Oloworaran acknowledged these concerns and assured stakeholders that the Commission is considering practical funding models that would strengthen state pension institutions without compromising accountability.

Commission Warns Against Diversion of Pension Deductions

PenCom also condemned the practice by some state governments of deducting pension contributions from workers’ salaries without remitting them into individual Retirement Savings Accounts (RSAs).

The Commission warned that such practices expose pension assets to misuse and could create huge unfunded liabilities for future administrations.

According to Oloworaran, pension deductions belong to workers and should never remain in government accounts where they could be diverted for unrelated purposes.

She pledged that PenCom would intensify engagement with affected states to end the practice.

Nigeria’s Pension Industry Continues Strong Growth

Despite implementation challenges at state level, Nigeria’s pension industry continues to record remarkable growth.

PenCom’s latest unaudited industry report shows that total pension assets climbed to ₦31.32 trillion in May 2026, representing an increase of approximately ₦384.98 billion from ₦30.94 trillion recorded in April.

On a year-on-year basis, pension assets expanded by nearly 29.5 per cent, demonstrating increasing confidence in the Contributory Pension Scheme and the resilience of Nigeria’s pension industry.

Experts React

Dr. Muda Yusuf, Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE) said increasing pension contributions could significantly improve retirement outcomes but cautioned that implementation should be gradual to avoid placing additional financial pressure on workers and employers.

According to him, government must balance workers’ welfare with prevailing economic realities, particularly inflation and rising living costs.

Prof. Uche Uwaleke, Professor of Capital Market, Nasarawa State Universit  described the proposed amendment as a positive step toward strengthening Nigeria’s pension system.

He noted that larger pension contributions would expand the industry’s asset base, increase long-term investment funds and support infrastructure financing, while providing retirees with improved financial security.

He, however, stressed that compliance and transparency must improve to ensure contributors enjoy the full benefits of the scheme.

Dr. Boniface Chizea, Financial Economis  said raising contribution rates alone would not solve Nigeria’s pension challenges unless all employers—particularly state governments—strictly comply with remittance obligations.

He urged PenCom to strengthen enforcement mechanisms and impose sanctions on employers that fail to remit workers’ pension contributions promptly.

What It Means for Nigerians

If approved, the proposed increase in statutory pension contributions would:

Increase retirement savings for Nigerian workers.

Improve pension benefits after retirement.

Expand Nigeria’s long-term investment capital for infrastructure and economic development.

Strengthen financial stability within the pension industry.

Reduce future pension liabilities and old-age poverty.

Improve confidence in the Contributory Pension Scheme.

What Happens Next?

PenCom will continue consultations with organised labour, employers, state governments and the National Assembly before forwarding amendments to the Pension Reform Act.

Once enacted, the revised law is expected to introduce higher contribution rates alongside broader reforms aimed at strengthening governance, expanding state participation and protecting pension contributors across Nigeria.                   PenCom, Pension Reform Act 2014, Omolola Oloworaran, Contributory Pension Scheme, Nigeria pension, Retirement Savings Account, pension contributions, pension assets, pension reform, National Assembly, organised labour.

PenCom has unveiled plans to increase statutory pension contribution rates through amendments to the Pension Reform Act 2014, as stakeholders push for stronger retirement savings, wider state adoption of the Contributory Pension Scheme, and better protection of workers’ pension funds.

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The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 26.5 per cent, maintaining all other key monetary policy parameters in a move aimed at consolidating declining inflation, preserving exchange rate stability and shielding Africa’s largest economy from growing geopolitical and global economic uncertainties.
The decision was reached at the 306th Meeting of the Monetary Policy Committee (MPC) held on July 20 and 21, 2026, where all 11 members unanimously agreed that maintaining the current monetary policy stance remained the most appropriate option despite encouraging signs of easing inflation.
The Committee explained that although inflation has continued to moderate, renewed hostilities in the Middle East, rising global energy prices and persistent supply chain disruptions pose significant upside risks that require a cautious policy approach.
MPC Retains All Key Monetary Policy Parameters
Following extensive deliberations on domestic and international economic developments, the Committee resolved to:
Retain the Monetary Policy Rate (MPR) at 26.5 per cent.
Maintain the Standing Facilities Corridor at +50/-450 basis points around the MPR.
Retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45 per cent.
Retain the CRR for Merchant Banks at 16 per cent.
Maintain 75 per cent CRR on non-TSA public sector deposits.
Leave every other monetary policy parameter unchanged.
Why the CBN Chose to Hold Rates
According to the MPC, recent economic indicators suggest that previous monetary tightening measures are beginning to produce positive results, particularly in slowing inflation and strengthening confidence in Nigeria’s foreign exchange market.
However, members noted that escalating geopolitical tensions in the Middle East continue to threaten global economic stability through higher crude oil prices, increased transportation costs and renewed inflationary pressures.
The Committee stressed that retaining the current policy stance would allow it to closely monitor incoming inflation data while preserving macroeconomic stability and maintaining investor confidence.
Inflation Moderates as Exchange Rate Stability Improves
The MPC noted that Nigeria’s headline inflation eased slightly to 15.91 per cent in June 2026, down from 15.93 per cent in May, ending three consecutive months of rising inflation.
Core inflation also declined significantly to 15.92 per cent from 16.82 per cent, reflecting improved exchange rate stability.
Although food inflation increased to 17.52 per cent due to supply constraints, the Committee observed that the overall inflation trend remains encouraging.
Similarly, the country’s 12-month average inflation rate declined for the sixth consecutive month, falling to 17.63 per cent, while month-on-month inflation slowed to 1.66 per cent, indicating that price pressures are gradually easing.
External Reserves Rise Above $52 Billion
The Committee also highlighted improvements in Nigeria’s external sector.
According to the communiqué, gross external reserves increased to $52.52 billion as of July 17, 2026, up from $50.47 billion at the end of May.
The reserves, largely boosted by crude oil-related tax receipts and third-party inflows, are sufficient to finance approximately 11 months of imports, far exceeding the international benchmark of three months’ import cover.
Banking Sector Stronger After Recapitalisation
The MPC expressed satisfaction with the outcome of the banking sector recapitalisation exercise, describing it as a major step towards strengthening Nigeria’s financial system.
Members noted improvements in key prudential and financial soundness indicators but urged the CBN to sustain close supervision of banks to preserve financial stability and minimise emerging risks.
Government Reforms Receive MPC Endorsement
The Committee applauded ongoing collaboration between fiscal and monetary authorities, noting that stronger policy coordination has helped cushion Nigeria against external shocks.
It also welcomed the Federal Government’s renewed efforts to increase crude oil production, implement Executive Order 9 and unlock opportunities in the solid minerals sector to diversify government revenue and reduce dependence on oil.
Economic Growth Remains Positive
Despite global uncertainties, the MPC said Nigeria’s economy remains resilient.
The Committee noted that real Gross Domestic Product (GDP) grew by 3.89 per cent in the first quarter of 2026, driven largely by robust performance in telecommunications, financial services, transportation, trade and other non-oil sectors.
Economic activities also strengthened as the country’s Purchasing Managers’ Index (PMI) returned to expansion territory at 50.1 points in June, signalling renewed business confidence.
Global Risks Still Threaten Inflation Outlook
While acknowledging improvements in Nigeria’s macroeconomic environment, the MPC warned that the global outlook remains uncertain.
The Committee observed that global growth is projected to slow to 3.0 per cent in 2026 due to escalating geopolitical tensions, trade policy uncertainties and tighter fiscal conditions.
It warned that higher crude oil prices, climate-related disruptions, exchange rate volatility and global supply chain challenges could fuel fresh inflation across emerging economies, including Nigeria.
Experts Welcome Decision
Economic experts who spoke with The Ameh News described the MPC’s decision as timely and necessary.
Celestine Ukpong, Economist, said the decision demonstrates the CBN’s commitment to sustaining macroeconomic stability despite mounting external pressures.
According to him, although inflation has begun to moderate, the pace of decline remains gradual, making it premature for the apex bank to cut interest rates.
He noted that maintaining policy consistency would strengthen investor confidence, protect the naira and sustain the recent gains recorded in foreign exchange stability.
Dr. Akin Olaniyan, economist, leadership coach and public affairs analyst, said the Committee adopted a balanced approach by prioritising long-term price stability over short-term economic stimulus.
He stressed that while high interest rates may continue to increase borrowing costs for businesses, reducing inflation remains essential for sustainable economic growth.
Olaniyan urged government to complement monetary policy with structural reforms capable of lowering production costs, improving infrastructure and boosting agricultural productivity.
Peter Adebayo, FCA, said retaining the current policy stance sends a positive signal to investors that Nigeria remains committed to responsible macroeconomic management.
He called for stronger fiscal discipline, increased domestic production, improved logistics and enhanced food security to complement the CBN’s monetary policy efforts.
What the Decision Means for Nigerians
For businesses and households, the decision means lending rates are likely to remain elevated in the near term, making access to credit relatively expensive.
However, economists believe maintaining higher interest rates could help:
Sustain the decline in inflation.
Protect the value of the naira.
Attract foreign portfolio investment.
Preserve external reserves.
Strengthen confidence in Nigeria’s banking system.
Create a more stable environment for long-term economic growth.
Looking Ahead
The MPC expressed optimism that inflation would continue to moderate in the coming months as the effects of previous monetary tightening deepen, exchange rate stability persists and food supply improves with the harvest season.
Nevertheless, the Committee warned that a prolonged escalation of the Middle East conflict remains the biggest threat to Nigeria’s inflation outlook and pledged to take appropriate policy actions whenever necessary to safeguard price and financial system stability.
The next meeting of the Monetary Policy Committee is scheduled for September 21 and 22, 2026.
The Central Bank of Nigeria retained the Monetary Policy Rate at 26.5% as inflation eased to 15.91%, external reserves rose to $52.52 billion and global risks persisted. Experts explain what the decision means for businesses, investors and Nigerians.
CBN MPC July 2026, Monetary Policy Committee, Olayemi Cardoso, Nigeria interest rate, MPR 26.5%, Nigeria inflation, External reserves, Exchange rate, Banking recapitalisation, Nigerian economy, Monetary policy, Financial stability, CBN news, The Ameh News.

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