Business
Nigeria May Slip Into Recession as Budget Deficit Hits N30.58trn In Seven Years
The budget deficit has risen to at least N30.58tn in the last seven years.
This is according to data from budget implementation reports for the third and fourth quarters of 2015; the four quarters of 2016, 2017, 2018, 2019, 2020; the first three quarters of 2021; and the first four months of 2022.
According to Investopedia, a budget deficit occurs when expenses exceed revenue.
An analysis of the reports on the Budget Office of Nigeria’s website revealed that Buhari’s administration had spent at least N54.98tn on budget implementation since its inception but has only financed this spending with N24.39tn, leaving a deficit of N30.58tn.
A breakdown of some of the expenses revealed that the present administration had spent at least N23.66tn on personnel costs, pensions, overhead costs, presidential amnesty programme, other service-wide votes, and special interventions.
A minimum of N14.13tn has been spent servicing domestic and foreign debts, and at least N10.47tn has been spent on capital expenditure.
According to the reports, this deficit financing has been largely financed by government borrowing. The budget implementation report for Q4, 2015 said, “The FGN has arranged to raise short-term credit from the CBN through the mechanism of Ways and Means subject to a ceiling of 12.5 percent of FGN’s revenue.
“This amount will be retired and therefore not considered as new borrowing outside the borrowing approved to finance the budget deficit. However, due to current fiscal challenges, the CBN had agreed to increase the Ways and Means advances threshold hence the FGN’s ability to raise N615.96bn from this source.”
Since allowance for raising the ceiling was made, total borrowing from the CBN has hit N19.01tn in April 2022 from N648.26bn as of June 2015.
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Also, the nation’s total debt profile hit N41.06tn as of March 2022 from N12.12tn, according to the Debt Management Office.
A document titled ‘Public Consultation on the Draft 2023 – 2025 MTFF/FSP’ presented by the Minister of Finance, Budget & National Planning, Mrs. Zainab Ahmed, said, “Revenue generation remains the major fiscal constraint of the federation. The systemic resource mobilization problem has been compounded by recent economic recessions.”
Recently, the Monetary Policy Committee of the Central Bank of Nigeria raised concerns over the nation’s debt sustainability. It said the Federal Government’s debt profile was worrying and noted that there was a need for it to urgently diversify its revenue base.
Commenting on the story, economists stated that a high deficit was not good for the economy and might cause inflation, recession, and slow down growth.
Speaking to a reporter, an economic expert, and seasoned academic at the University of Uyo, Professor Akpan Ekpo, said, “This shows that expenditure has eclipsed the revenue, because they have to borrow, which is why there is a deficit.
“They can’t raise enough domestic resources to finance spending. That gap is a deficit. Talking about GDP, by the rules, it should not be more than a certain percentage of GDP, but it has exceeded that. And when you borrow, you have expectations of borrowing because if you are not transparent, we don’t know what you are borrowing for.
“If you are borrowing to finance recurrent and overhead, it is not good for the economy. If you borrow to finance capital projects, in the long run, even if you have a deficit, it will have a positive multiplier effect. The deficit, if it is used to finance recurrent, is problematic to the economy.
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“One way of solving that is to raise more of domestic revenue or cut down on expenditure that is not needed, especially, the cost of governance. There is a need to check the expenditure profile and cut down on it. Or we could do expenditure switching, where unimportant items are switched with important items.
“We are spending more than we can raise resources and we are not spending it on hard infrastructure.”
Associate professor of Economics at the Pan-Atlantic University, Lagos, Olalekan Aworinde, added that the deficit was being financed by either government borrowing, sales of government properties, or printing money.
According to him, any of these options had implications for the economy. He stated, “Loans can be good and can be bad. A loan is good if it is used for productive expenditure, but if it is used for recurrent expenditure or consumption expenditure, this is not bringing back any returns.
“If the component of this deficit is majorly recurrent expenditures, it shows that we are unlikely to have any growth. There isn’t going to be any revenue coming out from there. The implication of this is that we are likely going to have stunted growth. Stunted growth in the sense that we are not likely going to have an increase in the total values of goods and services that are produced in the country.
“If care is not taken, we are likely going to slide into recession.”
He added that financing the deficit through sales of government properties would mean the government was reducing its asset base, which did not speak well for the economy.
NPO
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Auto
Uwatse Joins Ade-Ojo, Maduka in Exclusive League of Nigeria Auto Legends
Uwatse Joins Ade-Ojo, Maduka in Exclusive League of Nigeria Auto Legends
In a rare recognition of industry leadership and enduring contributions to Nigeria’s automotive sector, the Nigeria Auto Journalists Association (NAJA) has named Chief Benson Uwatse, Chairman of Weststar Associates Limited, recipient of the prestigious Nigeria Auto Legend Award at the 19th Nigeria Auto Industry Awards.
Uwatse’s emergence places him in an exclusive league of automotive icons, making him the third industry heavyweight to receive the distinction after Chief Michael Ade-Ojo, Chairman of Toyota Nigeria Limited, and Dr Cosmas Maduka, President and Chief Executive Officer of Coscharis Group.
The recognition celebrates Uwatse’s more than three decades of involvement in the Nigerian automotive industry, particularly his role in advancing the Mercedes-Benz brand and strengthening its presence in the country’s premium and luxury vehicle market.
The recognition underscores Uwatse’s longstanding involvement in the Nigerian automotive sector and his contributions to the development and representation of the globally renowned Mercedes-Benz brand in the country.
As Chairman of Weststar Associates Limited, the authorised general distributor of Mercedes-Benz in Nigeria, Uwatse occupies a strategic position in the country’s premium and luxury automobile market.
Weststar is responsible for coordinating Mercedes-Benz’s business activities in Nigeria, covering passenger cars, commercial vehicles, trucks and buses, alongside dealer support, marketing, training, genuine spare parts supply, warranties and after-sales services.
The company officially commenced operations in February 2008, assuming responsibility for Mercedes-Benz sales and after-sales operations in Nigeria. Its distribution network and authorised dealerships provide sales and servicing support across different parts of the country.
Uwatse’s association with the Mercedes-Benz brand spans more than three decades, giving him considerable experience in the Nigerian automotive business, particularly in premium vehicle distribution, customer relations and brand development.
His involvement in the business has also included leadership responsibilities in the Mercedes-Benz dealership network, specifically as Managing Director of MB Automobile Services Limited, one of the authorised Mercedes-Benz dealers in Nigeria.
The Nigeria Auto Legend Award is particularly significant because it recognises individuals whose contributions extend beyond routine business operations to the development, growth and advancement of the nation’s automotive industry.
Chief Ade.Ojo, the founder of Elizade Nigeria Limited and Chairman of Toyota Nigeria Limited, was the first recipient of the special industry recognition in 2017, in acknowledgement of his decades of investment, enterprise and contributions to Nigeria’s automobile business.
Dr Maduka, who transformed Coscharis from a modest automobile trading venture into one of Nigeria’s leading indigenous conglomerates, also earned recognition for his remarkable contributions to the automotive sector. Under his leadership, Coscharis Motors secured distribution franchises for several globally recognised automobile brands, including BMW, MINI, Rolls-Royce and Ford.
Uwatse’s emergence as the third recipient further reinforces NAJA’s commitment to celebrating individuals whose leadership, enterprise and industry experience have contributed significantly to the evolution of Nigeria’s automotive landscape.
The 19th edition of the Nigeria Auto Industry Awards, organised by NAJA, is scheduled to hold on Thursday, December 3, 2026, at the Civic Centre, Victoria Island, Lagos.
The annual awards bring together automobile manufacturers, distributors, dealers, policymakers, regulators, industry professionals and other stakeholders to celebrate outstanding achievements and recognise excellence across Nigeria’s automotive and transportation sectors.
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Insurance
Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention
Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention
Continental Reinsurance Holdings Limited has strengthened its investment proposition ahead of its proposed listing on the Botswana Stock Exchange (BSE), following regulatory approval of its Supplementary Prospectus, which introduces significant changes to its shareholding structure and incorporates improved half-year financial results.
The development is expected to boost investor confidence in the planned Initial Public Offering (IPO), particularly following the decision by promoter-controlled existing shareholder vehicle, ACA Cornerstone Limited, to retain its entire stake in the company rather than exit as initially contemplated.
Under the revised offer structure, ACA Cornerstone will retain all 253,951,336 shares it currently holds, representing approximately 11.9 per cent of Continental Reinsurance Holdings’ enlarged issued share capital after completion of the offer, assuming all contemplated new shares are issued.
The shareholder has also provided a formal undertaking, subject to specified conditions, to retain the shares for a minimum of five years following the company’s listing.
The commitment represents a significant shift from the original offer structure and signals continued confidence in the company’s business prospects, while strengthening alignment between existing and prospective shareholders.
Commenting on the development, Group Managing Director of Continental Reinsurance Holdings, Mutsunge Lawrence Nazare, said the revised offer reflected the company’s willingness to engage with investors and address their concerns.
“We have engaged closely with investors and taken on board their feedback. The revised offer reflects that engagement and reinforces our long-term investment proposition,” Nazare said.
He explained that ACA Cornerstone’s decision to remain invested, alongside its five-year share retention undertaking, demonstrated its continued commitment to the business and its future.
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According to him, the development would strengthen the relationship between existing and incoming shareholders as the company prepares to enter the Botswana Stock Exchange.
Beyond the revised shareholding arrangement, the Supplementary Prospectus incorporates the Group’s audit-reviewed interim financial results for the six months ended June 30, 2026, showing a significant improvement in profitability and underwriting performance.
The company’s profit before tax surged by approximately 352 per cent to P79.2 million, compared with P17.5 million recorded during the corresponding period of 2025.
Similarly, profit after tax increased by approximately 902 per cent, rising to P64.4 million from P6.4 million in the previous year’s comparable period.
Insurance revenue also recorded growth, increasing by 2.4 per cent to P1.213 billion, reflecting continued business activity and revenue generation across the Group’s operations.
The company also reported a notable improvement in its underwriting performance, with its underwriting margin rising to 6.8 per cent from 4.2 per cent in the corresponding period of the previous year.
The improved margin points to stronger underwriting results during the period, complementing the significant growth recorded in the Group’s overall profitability.
As of June 30, 2026, Continental Reinsurance Holdings reported total assets of P3.27 billion and shareholders’ equity of P1.43 billion, providing further insight into its financial position ahead of the proposed public listing.
Despite the changes to the offer structure and the improved financial performance, the company said its offer price would remain unchanged at P1.00 per share.
Continental Reinsurance Holdings is maintaining its target of raising USD30 million in new growth capital through the offer for subscription. The funds are expected to support the Group’s growth ambitions and strengthen its capacity to pursue opportunities within the reinsurance market.
The Public Offer will remain open until 15:30 on Friday, November 20, 2026, while the company’s listing on the Main Board of the Botswana Stock Exchange is scheduled for December 10, 2026, subject to the fulfilment of applicable listing requirements.
The company has also made provisions for investors who submitted applications before the publication of the Supplementary Prospectus to reconsider their investment decisions in light of the revised offer.
Such investors may maintain, amend or withdraw their existing applications. However, the deadline for submitting amendment or withdrawal notices is November 11, 2026.
Applications for which no amendment or withdrawal notice is received by the stipulated deadline will remain valid and unchanged.
The Supplementary Prospectus is expected to be read alongside the original Prospectus dated August 4, 2026. Both documents are available on the company’s website, www.continental-re.com, as well as through its sponsor, Motswedi Securities.
With the retention of a major existing shareholder, a five-year commitment against an early exit, and substantially improved interim financial results, Continental Reinsurance Holdings is seeking to reinforce investor confidence as it moves closer to its planned entry into the Botswana capital market.
Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention
Business
EFCC, NMDPRA Raid Chinese-Linked Illegal Refinery in Ogun, Uncover 90,000-Litre Underground Tanks
EFCC, NMDPRA Raid Chinese-Linked Illegal Refinery in Ogun, Uncover 90,000-Litre Underground Tanks
Officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Economic and Financial Crimes Commission (EFCC) have uncovered an illegal refinery allegedly linked to Chinese nationals at Ogere-Remo, Ikenne Local Government Area of Ogun State.
The facility, which occupies more than three hectares of land, was raided on Wednesday following intelligence gathered by the EFCC, revealing what investigators described as a well-fenced but unauthorised crude oil processing operation.
During the operation, the joint team discovered underground tanks suspected to have been used for heating and processing sludge oil, a waste product from refining, as well as substances believed to be Automotive Gas Oil (AGO), commonly known as diesel.
NMDPRA officials subsequently sealed the facility pending further investigation.
Speaking during the inspection, the Ogun State Coordinator of NMDPRA, Dr Atilola Akinyemi, said the facility was operating without approval or a licence from any recognised regulatory authority.
He disclosed that an underground storage installation behind the facility had an estimated capacity of more than 90,000 litres, alongside underground heating systems, water hydrants for cooling, locally fabricated tanks and silos designed for separating processed substances.
Describing the operation as illegal, Akinyemi said the operators appeared to possess technical expertise but had deliberately designed the facility to evade regulatory oversight.
“This facility you see here is very crude and completely illegal. This is not a refinery by any standard. It does not have a permit from any regulatory authority and its operations are unknown to the relevant authorities.
“They appear to be technically skilled people who have deliberately designed this facility to circumvent government regulations. When we examine their final product, it may look like diesel to the average person, but we cannot classify it as diesel until laboratory tests have been conducted,” he said.
The EFCC Zonal Director, Lagos Zonal Directorate 2, Bawa Usman Kaltungo, said the discovery pointed to a well-established illegal refining operation involving several stages of processing sludge into products resembling diesel.
“What we have seen here is an illegal refinery with a complete setup, featuring all the processes through which sludge passes before being converted into what is commonly referred to as diesel. Judging by the nature of this facility, it has been operating for years,” Kaltungo said.
He raised concerns over the growing involvement of foreign nationals in illegal industrial activities around the Ogere axis, recalling that 14 Chinese nationals were arrested in the area a week earlier over alleged illegal lithium processing.
According to him, investigations into the earlier operation revealed immigration irregularities, with some of the suspects allegedly lacking passports, while others were found to have overstayed their visas by about three months.
“Some of them had passports, while others did not. Even among those who had passports, we discovered that some of their visas had expired about three months earlier. Yet, there were still individuals operating there without passports,” he said.
Kaltungo vowed that those behind the illegal refinery would be identified and brought to justice.
Also speaking, the Director of the EFCC’s Department of Proceeds of Crime Management, Mr Gbolahan Latona, condemned the activities, warning that illegal operations of this nature undermine legitimate investments in Nigeria’s petroleum industry.
“Imagine allowing saboteurs like these to operate freely and undermine the efforts of legitimate investors like Dangote Refinery. Ultimately, it is Nigerians who will suffer,” Latona said.
The discovery comes amid renewed efforts by regulatory and law enforcement agencies to clamp down on illegal industrial operations, economic sabotage and activities capable of undermining investments in Nigeria’s oil and gas sector.
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