Business
AFRICAN FUTURE DEPENDS ON INTEGRATING INFORMAL SECTOR INTO FORMAL INTRA-AFRICAN TRADE – VP SHETTIMA
The Vice President, Senator Kashim Shettima, has emphasized that Africa’s future economic success depends on its ability to integrate the informal sector into the formal intra-African trade framework, particularly through the African Continental Free Trade Area (AfCFTA). In a statement signed by Stanley Nkwocha, Senior Special Assistant to The President on Media & Communications, Shettima made this declaration on Monday when he declared open the 4th African Union Micro, Small and Medium Enterprises (MSMEs) Forum in Abuja.
Stanley Nkwocha said Shettima warned that if Africa fails to harness the potential in the informal sector for small businesses to grow, the continent would “keep going round the same cycle of despair.” Shettima demanded the integration of the informal economy into the fabric of formal intra-African trade, noting that this is the reason why small businesses have remained at the heart of policy formulation in Nigeria.
“Your Excellencies, distinguished delegates, there can be no African prosperity without a strong MSME ecosystem. This forum is a continental call to action. We owe it to ourselves, to our children, and to generations unborn, to integrate our informal economy into the framework of formal intra-African trade,” Shettima said. He expressed confidence that through collaborative efforts, the forum would mark a turning point and translate shared aspirations into concrete actions that empower MSMEs and propel Africa towards a brighter, more sustainable future.
Shettima highlighted the crucial role MSMEs play in the development and growth of Africa, observing that beyond employing millions of Africans, “they are engines of inclusive growth and effective tools for poverty alleviation.” In Nigeria alone, MSMEs contribute a staggering 48% to the national GDP and employ over 84% of the workforce.
The Vice President identified limited access to affordable finance as a major challenge confronting MSMEs in Africa, describing it as a recurring nightmare. However, he expressed hope that the AfCFTA would bring change, saying, “It costs our continent not just money—it costs us momentum. But we must find hope in the promise of the African Continental Free Trade Area (AfCFTA).”
Shettima also acknowledged the remarkable surge in digital adoption across Africa, saying technology is achieving what politics has failed to actualize over the years. He emphasized the need for policymakers to invest in robust digital infrastructure, bridge the digital literacy gap, and establish regulatory frameworks that do not stifle innovation.
The forum featured remarks from several dignitaries, including the Deputy Chief of Staff to the President/Chairman of the Host Country Committee, Senator Ibrahim Hassan Hadejia; Special Adviser to the President on Job Creation and MSME, Mr. Temitola Adekunle-Johnson; Director General of the Small and Medium Enterprises Development Agency (SMEDAN), Mr. Charles Odii; and Managing Director of the Bank of Industry, Dr. Olasupo Olusi, among others.
Two of Nigeria’s largest beverage manufacturers; Nigerian Breweries and Guinness Nigeria, have announced plans to increase the prices of some of their products, citing rising operational and production costs amid the country’s challenging economic environment.
In separate notices sent to distributors, both companies said the price adjustments would affect selected stock-keeping units (SKUs) across their product lines. The move comes as manufacturers grapple with inflation, foreign exchange volatility, rising energy expenses, and increasing logistics costs.
Nigerian Breweries, Nigeria’s largest brewing company, disclosed that its new price structure would take effect on March 20, 2026. In a letter dated March 13 and signed by its zonal business manager (West), John Oloche Ademu, the company, said the review was necessary to cushion the impact of escalating operational and input costs.
The company explained that the current economic landscape has significantly increased the cost of doing business, making the price adjustment unavoidable in order to sustain operations and maintain steady product supply to distributors.
Similarly, Guinness Nigeria informed distributors in a notice dated March 14 that it would also increase prices on selected products, with the new rates expected to take effect from March 27, 2026. The brewer said the decision was driven by prevailing economic conditions that have raised production and operational expenses across the industry.
Both companies noted that distributors who place and fully fund their orders before the effective dates will still be able to purchase products at the existing prices.
Industry analysts say the development reflects growing pressure on manufacturers in Nigeria, where the cost of raw materials, packaging, transportation, energy, and foreign exchange has surged in recent months. The planned adjustments could lead to higher retail prices for popular beer and malt drinks in the coming weeks as distributors and retailers adjust to the new pricing structure.
Nigerian Breweries produces widely consumed brands such as Star Lager, Gulder, Legend Extra Stout, Heineken, and Maltina, while Guinness Nigeria is known for products including Guinness Stout, Malta Guinness, and Orijin.
The price hike is expected to add further pressure on consumers already facing high inflation and rising living costs across the country.
The Central Bank of Nigeria (CBN) has directed all banks in the country to restrict banking services to large borrowers with non-performing loans, in a move aimed at strengthening financial stability and reducing risks in the banking sector.
In a circular dated March 12, 2026, and addressed to all financial institutions, the apex bank said the directive targets “non-performing large ticket obligors” whose debt exposures could pose a systemic risk to the financial system.
Under the new directive, banks are required to deny additional credit facilities to any large borrower whose loan has been classified as non-performing and recorded in the Credit Risk Management System (CRMS) or any licensed private credit bureau.
The restriction covers all forms of credit, including loans and other direct lending facilities. Banks have also been instructed not to extend contingent banking services such as letters of credit, performance bonds, banker’s confirmations, or advance payment guarantees to such borrowers.
The CBN further directed banks to strengthen collateral coverage by obtaining additional realizable collateral from affected borrowers in order to secure existing exposures.
According to the apex bank, large ticket obligors are borrowers whose total exposure meets the threshold outlined in the Prudential Guidelines for Deposit Money Banks in Nigeria or whose combined borrowings across banks exceed the Single Obligor Limit (SOL), thereby posing potential risks to banks’ Capital Adequacy Ratio (CAR).
The directive forms part of the regulator’s efforts to protect depositors, enforce prudential compliance, and maintain stability within Nigeria’s banking system.
Vietnam recorded the world’s largest trade surplus with the United States in January 2026, surpassing both Mexico and China, according to the newly released U.S. trade data.
The figures show that Vietnam’s exports to the United States surged sharply at the start of the year, helping the Southeast Asian country top the list of America’s largest trade surplus partners.
Data from U.S. authorities indicate that the trade surplus reached about $19 billion in January, driven largely by a 53% increase in Vietnamese exports to the U.S., which exceeded $20 billion during the period.
The development reflects a continuing shift in global trade patterns, as American imports from China declined while more goods are sourced from Vietnam and other Asian manufacturing hubs.
Despite the strong trade figures, negotiations between Washington and Hanoi over a bilateral trade agreement remain unresolved. Officials say disagreements over tariff rates and the widening trade imbalance have delayed progress on a deal.
Analysts also note that Vietnam’s trade surplus with the United States has been expanding steadily in recent years, partly because higher tariffs on Chinese goods encouraged companies to shift manufacturing and exports to Vietnam.