Business

Rising Loan Repayments, Capital Reversals Drive CBN FX Outflows By $1.2bn

Published

7 months ago

May 12, 2025

…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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Business

FG, Investonaire Academy Unveil National Programme to Equip 100,000 Youths with Financial Skills, Digital Wealth Tools

Published

5 days ago

November 25, 2025

The Gleamer

By Joel Ajayi

The Federal Government, in collaboration with Investonaire Academy, has unveiled a nationwide financial literacy and wealth-building programme targeting more than 100,000 young Nigerians. The initiative is designed to equip participants with practical skills in budgeting, saving, investing, asset building, and long-term financial planning, positioning them for sustainable prosperity in a rapidly evolving economy.

Launched on Tuesday in Abuja, the Honourable Minister of Youth Development, Comrade Ayodele Olawande, described financial literacy as a necessary survival tool for young people confronting today’s economic realities.

He noted that the initiative represents the foundation of a broader vision expected to extend beyond Nigeria to other African nations and global markets.

Reaffirming the Federal Government’s commitment to supporting over 4,000 corps members annually, the Minister said the programme will provide platforms, resources, and skills needed for both job creation and employability.

“The young people who understand money — how to save, invest, build assets, and manage risk — are the ones who will lead Nigeria into prosperity,” he said.

A major highlight of the launch was the expansion of the Nigeria Youth Academy, a digital platform offering mentorship, training, and startup support. According to the Minister, more than 200 startups will receive empowerment through the Academy’s e-app platform before the end of the year.

He stressed the need for deeper collaboration with private organisations, innovators, and youth-focused groups, noting that government alone cannot drive youth development. He further encouraged young Nigerians to embrace skills acquisition, innovation, and digital enterprise, saying these remain critical to reducing the desire for migration and increasing self-reliance.

Outlining the Ministry’s long-term commitments, Olawande emphasized three priorities: supporting youth innovation, equipping them with growth tools, and safeguarding millions of Nigerian youths under the Ministry’s mandate.

Speaking at the launch, Sebastien Sicre, Chief Operating Officer of Investonaire Academy, said the programme was crafted to revolutionize the way Nigerian youths learn and apply financial knowledge. He highlighted the Academy’s gamified Learning Management System (LMS), which offers interactive learning tools, community forums, and real-time mentorship to make financial education engaging and accessible.

Complementing the digital platform is a new 200-square-metre physical training centre in Abuja, opposite the NNPC Towers, where in-person workshops and mentorship sessions will take place.

The curriculum covers key global asset classes — including equities, commodities, forex, and indices — ensuring participants gain a broad understanding of financial markets.

Sicre added that with Federal Government backing, the programme seeks to unlock new opportunities, strengthen youth participation in the digital economy, and reward outstanding participants through a $1 million funding pool to support new and existing ventures.

International Programme Director of Investonaire Academy, Dr. Enefola Odiba, explained that the initiative aims to bridge long-standing gaps in financial education among Nigerian youths. While schools teach many subjects, he said, essential financial skills are often missing.

“Many people can earn money — earning money can be easy. The real challenge is retaining, managing, and growing that money,” he noted.
Referencing the Central Bank of Nigeria’s definition of financial literacy, Odiba stated that implementation remains a major national challenge. He said the initiative brings together government agencies, youth groups, academic institutions, and private-sector partners to translate strategy into measurable impact.

The programme’s curriculum covers budgeting, saving, investing, and financial planning — areas where many young people struggle. By offering practical training, real-world insights, and guided mentorship, the initiative aims to build a generation of financially empowered youth capable of driving innovation, entrepreneurship, and sustainable economic growth.

With this partnership, the Federal Government and Investonaire Academy share a common goal: to empower young Nigerians with the financial intelligence and digital tools needed to build wealth, grow businesses, and transform the nation’s economic future.

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