E-Financial
IMF casts gloomy cloud over Nigeria’s economy
By Lukman Otunuga, Research Analyst at FXTM
Market optimism over Nigeria’s economic recovery received a blow in September following an International Monetary Fund (IMF) statement that the nation was performing poorly.
Although at the start of the year the economic outlook looked incredibly encouraging with Nigeria coming out of a recession, the latest IMF report planted a seed of doubt over that recovery. The nation’s GDP rate in 2018 was revised downwards from 2.1% with tepid growth expected next year. While there could be some truth behind the IMF’s gloomy predictions, it is worth noting they were likely based on trade tensions and stress in emerging markets weighing heavily on global sentiment. According to the IMF, Nigeria’s projected economic growth may not be enough to create jobs for the country’s robust population while inflation is expected to rise to 13.5% in 2019. Although the weak GDP growth witnessed in Q2 added to the factors that have stimulated fears over the economy, there is still some light at the end of the tunnel.
Nigeria’s macro fundamentals were mostly mixed during the third trading quarter with inflation dipping to a 11.14% low before rebounding to 11.24% in August. While consumer prices continued to stabilize, the manufacturing and non-manufacturing PMI remained in expansionary territory. With foreign exchange reserves hovering around the $46 billion level thanks to higher oil prices, there was noticeable stability in the Naira. The mixed data, external factors, and looming election risk resulted in the Central Bank of Nigeria (CBN) maintaining status quo for the whole of Q3.
It will be interesting to see if the central bank is able to act during the final trading quarter of this year. Higher US interest rates have sparked capital outflows while global trade tensions continue to weigh on sentiment. Although inflationary pressure has eased, pre-election spending could end up driving consumer prices higher, ultimately complicating the CBN effort to cut interest rates. While the idea behind a rate cut was to stimulate Nigeria’s economic growth, such a strategy may end up widening the interest rate differentials between the Fed and CBN – consequently accelerating capital outflows.
Outside of Nigeria, the bullish sentiment towards the US economy, prospects of higher US interest rates and safe-haven flows have boosted the Greenback. An appreciating Dollar remains very bad news for emerging markets, with Nigeria on the list. With the US firing on all cylinders and the Fed expected to raise interest rates in December and three more times in 2019, EMs remain threatened by capital outflows.
Looking at oil, the commodity had an explosive start in October, with Brent Crude accelerating past $86 and West Texas Intermediate doing its best to catch up but falling behind by roughly $10. Even with reports of the US considering waivers on Iran oil sanctions, the outlook points to further upside. With oil markets heavily supported by trade policy changes in the US and geopolitical risk factors, this is good news for oil-dependent nations. A steady appreciation in oil is likely to support Nigeria which currently remains reliant on oil exports for a chunk of its government revenues.
As we head deeper into the final trading quarter of 2018, investors will be paying very close attention to domestic economic data, central bank policy, and GDP figures. With the IMF trimming Nigeria’s growth outlook this year and for 2019, this could be a wakeup call for the government to boost its efforts in diversifying the nation from oil reliance. There needs to be a stronger push on agriculture developments and reinforcing infrastructure to create a stable and sustainable macroeconomic environment. With the near-term outlook for oil prices bullish and the Naira witnessing stability against the Dollar, Q3 growth could offer markets a pleasant surprise. It will be interesting to see if positive growth during the third quarter is enough to encourage the CBN to cut interest rates before 2019.
E-Financial
First Asset Management Launches National Initiative to Raise 100m Investment-Smart Nigerians
First Asset Management, one of Nigeria’s leading investment managers and a subsidiary of FirstHoldCo Plc, launches the 100 million Smart Inventors campaign.
Nigeria’s investment market has huge potential, yet it remains underutilised due to widespread distrust, misinformation, and past losses suffered through fraudulent schemes. Trillions of Naira have been lost, leaving many Nigerians fearful and excluded from real, rewarding investments and leaving them on the economic sidelines.
Reports show that less than 5% of adult Nigerians currently participate in the formal capital market, and as low as 0.25% invest in Mutual Funds, a stark contrast to participation rates often exceeding 50% in developed economies like the United States. This highlights the urgent need to restore trust and improve access to credible investment education.
In response to this critical challenge, First Asset Management has announced the launch of a landmark national movement, the “100 million Smart Investors Initiative”. The campaign is positioned as a direct strategy to rebuild investor confidence and democratise financial knowledge across the nation.
According to the firm, the initiative was conceived from the need to address the anxieties that have historically prevented countless Nigerians from participating in real wealth-building investments. Drawing on its track record of trust and market expertise, First Asset aims to cultivate a new generation of informed, confident investors.
At the heart of the initiative is a comprehensive investor education programme. The goal is to transform casual interest in investing into active participation within a supportive, well-informed community.
Beyond expanding investor numbers, the movement seeks to improve the quality of investment decisions by equipping individuals with the tools to evaluate opportunities and avoid fraudulent platforms.
For everyday Nigerians, the initiative promises simplified, practical financial education that demystifies investing. By building a strong peer network through a nationwide community platform, it seeks to reduce the isolation often faced by new investors and promote collective financial empowerment.
Ultimately, the 100 Million Smart Investors movement represents a significant investment in Nigeria’s human capital. By providing actionable steps, success stories, and sustained education, First Asset Management aims to usher in a new era of financial literacy and participation.
This initiative would not only enhance the financial well-being of individuals and families but also contribute to the broader economic prosperity of the nation by channelling dormant capital into productive sectors of the economy.
To kickstart this bold quest, the brand has planned a series of free educational bootcamps, podcasts and community engagement with industry experts and leaders. The inaugural event will take place live on 26 July 2025.
Follow @FirstAssetManagement on all social media handles to stay informed and visit https://first-assetmanagement.com/smart-investors for details on how to join the movement.
PalmPay, a leading neobank and fintech platform focused on emerging markets, has been recognised in CNBC and Statista’s 2025 Top 300 Fintech Companies in the World list. This marks the second year in a row that PalmPay has earned a place among the world’s most innovative and impactful financial technology firms.
The selection is based on a rigorous evaluation of thousands of companies globally, assessing growth, innovation, market penetration, and impact. This year’s list includes a mix of global leaders – including Revolut, Nubank and Ant Group – alongside rising stars from high-growth markets, underscoring the growing influence of emerging-market fintechs like PalmPay.
PalmPay’s inclusion reflects its continued momentum as one of Africa’s leading fintech platforms. With over 35 million registered users and up to 15 million transactions processed daily, the company offers a comprehensive suite of digital financial services tailored to the needs of underserved communities.
In its main market, Nigeria, PalmPay operates as a full-service neobank, offering consumer financial services such as transfers, bill payments, credit, savings, and insurance – all accessible through its user-friendly app and supported by a nationwide network of over 1 million agents and merchant partners. The company also provides POS and API-driven B2B solutions tailored to the needs of merchants and enterprise clients.
“To be recognised as one of the world’s top fintech companies by CNBC and Statista is a powerful affirmation of our mission to build a more inclusive financial system,” said Sofia Zab, Founding Chief Marketing Officer at PalmPay.
“Through cutting-edge technology, deep local distribution, and a customer-first mindset, we’ve built Nigeria’s leading neobank. As we scale PalmPay to more emerging markets, including Tanzania and Bangladesh, our focus remains on closing financial access gaps for everyday consumers and businesses, while expanding the partner ecosystem that fuels our reach and impact.”
As part of its broader expansion strategy, PalmPay recently launched in Tanzania and Bangladesh through a smartphone device financing model that serves as an entry point to digital financial services.
“PalmPay is building a neobanking platform tailored to the realities of emerging markets,” said Jiapei Yan, Group Chief Commercial Officer at PalmPay. “We are creating the infrastructure for a connected digital economy – where people and businesses can thrive through reliable, inclusive financial tools.
This recognition from CNBC and Statista affirms our progress and also the scale of the opportunity ahead. As we expand across more emerging markets, we are committed to creating lasting value for our users, partners, and the communities we serve.”
PalmPay’s inclusion follows another major recognition earlier this year: the company ranked #2 overall and #1 in the financial services sector on the Financial Times – Africa’s Fastest-Growing Companies 2025 list. The ranking, based on revenue growth between 2020 and 2023, highlighted PalmPay’s rapid scale and market traction across Africa.
PalmPay currently operates in Nigeria, Ghana, Tanzania, and Bangladesh, and is expanding its presence across Africa and Asia through device financing, digital banking, and B2B payment services. Backed by a robust neobanking platform and a partnership-led approach, the company is committed to shaping the next chapter of inclusive financial growth.
Fidelity Bank Plc has reaffirmed its commitment to quality education and youth empowerment with the renovation of a classroom block and donation of textbooks to Aso Pada Government Secondary School in Karu LGA, Nasarawa State.
L-R: The Team Lead, CSR, Fidelity Bank Plc, Victoria Abuka; Vice Principal, Government Secondary School, Aso Pada, Maraba, Mr. Abdullahi Idris; Project Co-ordinator, Elite Bankers 2025 Inductee Class, Fidelity Bank Plc, Onyinyechi Ihesiaba; Vice Principal -Academics, Government Secondary School, Aso Pada, Maraba, Mr. Ela Isa; during the commissioning of a renovated block of classrooms and the distribution of Back-to-School Materials at Government Secondary School Aso Pada, Maraba, Nassarawa State recently.
The project was executed through the Fidelity Helping Hands Program (FHHP), a corporate social responsibility initiative that enables staff to identify community needs, raise funds, and receive matched support from the bank.
Speaking at the handover ceremony, Dr. Meksley Nwagboh, Divisional Head, Brand and Communications, said the school was chosen due to its impact on the local community and its lack of renovation in over 15 years.
Vice Principal Abdullahi Idris praised the bank’s gesture, calling it “an investment in the future of our nation,” and expressed hope for a lasting partnership.
The initiative follows Fidelity Bank’s recent donation of 1,000 solar-powered schoolbags to pupils across Ogun State, aimed at improving study conditions in areas with limited electricity.
Fidelity Bank serves over 9.1 million customers and has received multiple awards for innovation and SME support, including the 2024 Excellence in Digital Transformation Award and Best Bank for SMEs in Nigeria by Euromoney.
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