Business
Edun Meets Microsoft Delegation, Assures Conducive Business Environment For Multinational Tech Giants
Joel Ajayi
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has assured of government’s dedication and commitment towards creating a conducive business environment that will enable multinational companies to expand their investments in the country with a view to contributing to the nation’s economic growth and development.
He Edun gave the assurance when he received and met with a delegation in his office in Abuja from Microsoft Nigeria, led by the Country Manager Nigeria, Olatomiwa Williams.
The Minister welcomed Microsoft’s commitment to Nigeria and emphasized the administration’s understanding of the strategic importance of sector leaders like Microsoft.
The meeting, he said, marks a significant step forward in fostering a collaborative relationship between the federal government and multinational technology companies, driving economic development and innovation in Nigeria.
Speaking earlier, Microsoft Country Manager for Nigeria, Olatomiwa Williams, stated that the team was on the visit to address recent media reports and explore potential areas of collaboration between the federal government and the technology giant.
The Managing Director reassured the Minister that Microsoft remains committed to its operations in Nigeria, contrary to recent speculation.
He expressed the company’s desire to partner with the government in areas of mutual interest, including cyber security and youth upskilling.
Business
Rising Loan Repayments, Capital Reversals Drive CBN FX Outflows By $1.2bn
…Surge reflects growing external debt service burden
By Charles Cyril
Capital outflows from Nigeria rose significantly in January 2025, reaching $1.20bn, up from $1.06bn recorded in December 2024.
The increase represents a sustained pressure on the country’s external sector, driven primarily by surging external loan repayments and a notable uptick in capital reversals.
According to the January data, the sharp rise in outflows was largely due to a 27.45% increase in loan repayments, which amounted to $0.65bn during the month.
This surge reflects a growing external debt service burden, as the country continues to meet its obligations amidst tighter global financial conditions, elevated interest rates, and a strong US dollar.
Analysts suggest that these repayments are likely linked to maturing debt instruments and syndicated loans, which were contracted in previous years when global liquidity was more accommodative.
Funds previously invested in the country that are now being pulled out by investors also contributed significantly to the overall outflow.
These reversals rose by 3.85% in January to $0.54bn. The increase in capital reversals, according to findings, may be attributed to heightened investor caution, stemming from macroeconomic uncertainties, policy inconsistencies, and concerns over currency stability.
Some foreign portfolio investors may have opted to exit local markets due to perceived risks or in search of more attractive yields in other emerging or developed markets.
Interestingly, the repatriation of dividends the transfer of profits by foreign-owned companies to their parent firms declined sharply during the period.
According to the CBN data, the value of dividend repatriation fell by 66.67% to just $0.01bn. This sharp drop could be indicative of companies deferring profit remittances amid volatility in foreign exchange markets or regulatory measures aimed at easing pressure on external reserves.
In terms of proportional contribution to the total outflow, loan repayments constituted the largest share at 54.33%.
Capital reversals followed closely, accounting for 44.81%, while repatriated dividends made up a mere 0.85%.
Other forms of capital outflows, including payments for technical services, royalties, and management fees, accounted for the remaining portion.
The rise in capital outflows, particularly in the form of debt repayments, underscores the vulnerability of the country’s balance of payments to external shocks and rising debt obligations.
With international reserves under strain and external financing conditions still tight, policymakers face a delicate task of balancing debt service commitments with the need to support domestic economic growth and currency stability.
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