Business

Lagos woos South African investors with $1.2b digital push, infrastructure drive

Published

5 months ago

April 27, 2026

NewsNexis Africa

Spread the love

By Ambrose Nnaji

Lagos State is positioning itself as West Africa’s premier investment hub, pitching major infrastructure upgrades, regulatory reforms and a surge in digital spending to South African investors as it seeks to deepen cross-border capital flows under the African Continental Free Trade Area (AfCFTA).

Speaking at the second edition of the Nigeria–South Africa Economic Diplomacy Roundtable 2026, the Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Ambrose-Medebe said the Lagos government attracted about ₦1 trillion in new investments in 2025, alongside more than $1.2 billion in digital infrastructure commitments, including data centres and broadband expansion.

“Lagos offers a stable, reform-driven environment with world-class logistics and a vibrant entrepreneurial base ready to scale opportunities”, the Commissioner said.

The roundtable, held under the South Africa Week 2026 platform and hosted in partnership with MTN Group and the South African Mission in Lagos, brought together government officials and corporate executives seeking to align policy with business realities.

Represented by the Director of Cooperatives, Ministry of Commerce, Cooperative Trade and Investment, Adeyemi Adeyinka, Ambrose-Medebe said Africa’s largest city economy, which accounts for more than 30percent of Nigeria’s Gross Domestic Product (GDP), is banking on a wave of infrastructure development to lower business costs and unlock trade. She highlighted progress on urban rail systems, road networks, and flagship projects such as the Lekki Deep Sea Port and coastal highway, designed to strengthen Lagos’ position as a regional logistics hub.

Ambrose-Medebe said the state has also accelerated regulatory reforms, including digitised government services and faster construction permitting timelines of about 15 working days for low-risk projects, helping it rank as Nigeria’s top-performing state in ease of doing business in 2025.

She said these moves are critical as Nigeria and South Africa — Africa’s two largest economies — attempt to reverse historically low levels of bilateral trade despite strong diplomatic and investment ties.

“Structural bottlenecks have long limited intra-African trade, but reforms at the subnational level, particularly in Lagos, could help unlock new value chains,” she said.

The state’s medium-term strategy, anchored on its Industrial Policy (2025–2030) and Development Plan 2052, targets export-led growth, with a focus on manufacturing, technology, and services, Ambrose-Medebe said.

She said the flagged upcoming investment roadshows, including the “Invest in Lagos” initiative in partnership with the Commonwealth Enterprise and Investment Council, is aimed at converting investor interest into bankable projects.

South African firms, already dominant in sectors such as telecommunications, retail and financial services in Nigeria, are being encouraged to expand into renewable energy, infrastructure financing, agribusiness value chains, and the creative economy.

According to the Commissioner, Governor Babajide Sanwo-Olu’s administration has allocated more than 52per cent of its 2026 budget to capital expenditure, signalling continued emphasis on infrastructure-led growth.

For investors, the pitch is clear: Lagos wants to be the entry point into a rapidly integrating African market. “This roundtable must move beyond dialogue to concrete deals and joint ventures”, Ambrose-Medebe said, underscoring a push for deeper commercial ties between the continent’s economic heavyweights.

The Chairman of the Nigerian-South Africa Chamber of Commerce, Ije Jidenma, called for deeper trust, joint ventures and outcome-driven partnerships between Nigerian and South African firms, as both countries seek to convert diplomatic ties into tangible economic gains.

Jidenma said economic diplomacy must move beyond rhetoric to deliver measurable progress in trade, infrastructure and private sector collaboration. She praised the vision of South Africa’s Consul General, Bobby Moroe, noting his role in advancing bilateral engagement and positioning the relationship as central to Africa’s growth agenda.

“At its core, economic diplomacy is about deploying economic tools—trade, investment, finance—to advance national interests,” Jidenma said, adding that the chamber is working to ensure businesses from both countries expand across each other’s markets on a “win-win and sustainable basis.” He said stronger collaboration could drive export growth, attract capital and technology, and help secure critical infrastructure across sectors such as energy and food systems.

The push comes amid shifting global economic dynamics that are forcing African economies to look inward for growth. Jidenma described the roundtable as both “timely and strategic,” arguing that Nigeria and South Africa must lead by example in strengthening partnerships across infrastructure, logistics, housing and digital connectivity to unlock investment flows and boost productivity.

He acknowledged persistent structural and perception challenges but stressed that building trust remains central to unlocking the full potential of the relationship. “Our role is also about attitudinal change,” she said, urging businesses to look beyond short-term obstacles and align around a broader continental vision.

Jidenma pointed to growing private sector leadership as a catalyst for that shift, citing remarks by Mcebisi Jonas on embedding corporate activity within national development priorities. Companies, she said, must go beyond profit-making to become part of the “fabric of nation-building,” integrating investment with long-term socio-economic impact.

The chamber, she added, is positioning itself as a bridge to facilitate deals, reduce information gaps and support market entry for businesses on both sides. Discussions at the roundtable are expected to focus on practical outcomes, including closing financing gaps, improving broadband infrastructure and creating a more enabling environment for private sector participation.

With Africa’s largest economies under pressure to deliver on integration ambitions, Jidenma said the success of the platform would ultimately depend on its ability to translate dialogue into projects. “The people in this room can activate transformative infrastructure—not just for our two countries, but for the continent,” she said.

As stakeholders deepen engagement, the Nigeria–South Africa corridor is increasingly seen as a test case for whether economic diplomacy can deliver scalable, private sector-led growth across Africa.

Acting Consul General Kgothatso Xulu, representing Consul General Bobby Moroe, said both countries must move beyond dialogue to structured, results-driven engagement capable of unlocking continental growth. He argued that while high-level conversations have helped sustain diplomatic goodwill over the years, the next phase of the Nigeria–South Africa relationship must be defined by implementation—clear timelines, bankable projects and measurable outcomes that directly impact trade, investment and industrial development.

According to her, aligning policy with private sector priorities will be critical to achieving this shift. He noted that regulatory bottlenecks, market access constraints and fragmented value chains continue to limit the full potential of bilateral trade, despite the size and influence of both economies. Structured engagement, she said, should focus on resolving these barriers through coordinated reforms, while also expanding opportunities in key sectors such as telecommunications, energy, infrastructure and digital innovation.

Xulu stressed that the stakes go beyond bilateral gains, positioning Nigeria and South Africa as joint drivers of Africa’s economic future. With the African Continental Free Trade Area opening new pathways for intra-African trade, she said both countries carry a responsibility to lead by example—demonstrating how strategic cooperation can translate into scalable growth, stronger regional value chains and inclusive development across the continent.

Business

Customs: Salako takes charge at Lilypond Export Command, pledges stronger trade facilitation

Published

3 weeks ago

August 25, 2026

NewsNexis Africa

Spread the love

By Editor

The Nigeria Customs Service (NCS), Lilypond Export Command, has commenced a new phase of leadership following the retirement of its Customs Area Controller (CAC), Comptroller Samuel Olusanya Ariyibi.

Ariyibi formally handed over the affairs of the Command to Deputy Comptroller Olusola Salako, who has assumed duty as Acting Customs Area Controller.

The handing-over and taking-over ceremony, held on August 24, marked the formal conclusion of Ariyibi’s tenure and followed the established administrative procedures of the NCS.

In a statement, Olusola Oke, Ariyibi expressed appreciation to the Comptroller-General of Customs, Bashir Adewale Adeniyi, the management of the Service, officers and men of the Command, and stakeholders for their support and cooperation during his tenure.

The retiring CAC attributed the achievements recorded by the Command to teamwork, professionalism, discipline and dedication, as well as sustained collaboration between Customs personnel and stakeholders.

He urged officers and men to extend the same commitment and cooperation to the new leadership, stressing the need to preserve the operational standards and gains recorded under his watch.

Ariyibi also expressed confidence in Salako’s ability to build on the foundation already established and further strengthen the mandate of the Lilypond Export Command.

Responding, the new Acting CAC, Deputy Comptroller Salako, commended Ariyibi for what he described as his dedicated and meritorious service to the NCS and contributions to the development of the Command.

Salako pledged to provide purposeful, responsive and professional leadership, with emphasis on strengthening the Command’s core responsibilities.

He identified trade facilitation, regulatory compliance, anti-smuggling operations and stakeholder engagement as key areas that would receive attention under his leadership.

The Acting CAC also called on officers and men of the Command to uphold discipline, professionalism and teamwork, noting that collective responsibility would be critical to achieving the strategic objectives of the Command and the broader mandate of the NCS.

He further solicited the continued support and cooperation of stakeholders, saying stronger collaboration would be essential to improving operational effectiveness and enhancing the Command’s contribution to Nigeria’s economic development.

The transition formally brings Ariyibi’s tenure as CAC of Lilypond Export Command to an end following his retirement from the NCS.

The Command commended the retiring comptroller for his service to the Service and the nation and wished him a fulfilling retirement. It also welcomed Salako and wished him a successful and impactful tenure as Acting CAC.

Business

Rite Foods’ innovation, green energy drive earns top 50 impact recognition

Published

3 weeks ago

August 25, 2026

NewsNexis Africa

Spread the love

By Reporter

Rite Foods Limited, an indigenous food and beverage company, has been recognised among the Top 50 Nigerian Companies of Impact 2026 at the Industry Newspaper Awards.

The recognition honours companies making measurable contributions to Nigeria’s economic and social development through innovation, sustainability, employment generation and community-focused initiatives.

Rite Foods was recognised for its investments in modern manufacturing infrastructure, technology, product development and sustainable business practices, as well as its contribution to local value creation and the growth of Nigeria’s fast-moving consumer goods (FMCG) industry.

The Editor-in-Chief and Chief Executive Officer of Industry Newspaper, Goddie Ofose, said the award also reflects the company’s activities in employment creation, community development, environmental sustainability and product innovation.

According to him, the Top 50 Companies of Impact recognition is designed to celebrate organisations whose operations generate tangible economic, social and environmental value.

Ofose said Rite Foods stood out for its commitment to innovation, sustainability, environmental preservation and community development.

“The Top 50 Companies of Impact recognition is designed to celebrate organisations whose activities demonstrate tangible economic, social, and environmental value. Rite Foods distinguished itself through its commitment to innovation, sustainability, environmental preservation, and community development.”

He particularly cited the company’s Waste-Is-Naira (W.I.N.) programme and Riteonthebeach project, which are focused on plastic waste recovery, environmental cleanliness and public awareness.

Over the years, Rite Foods has expanded its portfolio of consumer brands, including Bigi Carbonated Soft Drinks, Bigi Premium Drinking Water, Sosa Fruit Drinks, Fearless Energy Drink, Rite Spicy Beef Sausage, Bigi Beef Sausage and Bigi Flex Sausage.

Through continued investment in product development, the company has introduced new flavours and packaging formats aimed at responding to changing consumer preferences while maintaining its emphasis on quality and affordability.

Ofose said the initiatives demonstrate how corporate sustainability programmes can extend beyond the factory environment to tackle environmental challenges affecting communities.

Rite Foods’ energy strategy was also highlighted as part of its sustainability efforts.

The Editor-in-Chief said about 95 per cent of the company’s energy consumption comes from cleaner energy sources, including natural gas and solar power, while diesel accounts for about five per cent.

He said the energy mix has helped the company reduce its environmental footprint while supporting operational efficiency.

Beyond environmental sustainability, Ofose also commended Rite Foods’ corporate social responsibility initiatives in education, healthcare and economic empowerment, saying they have contributed to community development across Nigeria.

Commenting on the award, the Head, Corporate Affairs and Sustainability, Rite Foods Limited, Ekuma Eze, said the recognition reflects the company’s commitment to creating value beyond its commercial activities.

“This honour is a reflection of the impact we are creating across multiple areas from innovation and human capital development to community engagement, sustainability and support for initiatives that contribute to national development.”

Eze said innovation remains central to Rite Foods’ business strategy, adding that investments in product development and manufacturing capabilities have strengthened the company’s ability to respond to changing consumer preferences and compete in Nigeria’s evolving FMCG market.

“For us, innovation is not simply about introducing new products. It is about understanding consumers, investing in people and technology, improving our processes, and creating products and solutions that deliver value. This recognition reinforces our commitment to doing more,” he said.

The latest recognition adds to a growing list of awards and industry commendations received by Rite Foods for its performance, innovation, leadership and sustainability initiatives.

The company said the recognitions reinforce its ambition to build a proudly Nigerian business operating to global standards while deepening investments in innovation, sustainability, human capital, communities and the future of Nigeria’s consumer economy.

Business

Elumelu’s $500m Seplat bet doubles to over $1bn in eight months

Published

4 weeks ago

August 20, 2026

NewsNexis Africa

Spread the love

By Ambrose Nnaji

Tony Elumelu’s investment in Seplat Energy Plc has crossed the $1 billion mark in market value, less than eight months after his investment vehicle, Heirs Holdings, acquired a 20.07 percent stake in the Nigerian energy company for approximately $500 million.

The sharp appreciation in the value of the holding follows a strong rally in Seplat’s shares on both the Nigerian Exchange (NGX) and London Stock Exchange (LSE), which has lifted the company’s market capitalisation to about $5.24 billion.

Heirs Holdings acquired 120.4 million Seplat shares from French energy company Maurel & Prom in December 2025, becoming the company’s largest shareholder.

Based on Seplat’s referenced share prices of N11,200.60 on the NGX and £6.47 on the LSE, the 120.4 million-share holding is now valued at approximately $1 billion, more than twice the original investment.

The gain underscores the scale of Seplat’s market rerating since the transaction and represents one of the more notable appreciation stories among major Nigerian-listed companies in 2026.

Seplat entered 2026 at N5,809 per share but quickly began a sustained rally after the Heirs Holdings transaction.

Within the first trading week of the year, the stock gained 6.2 percent and reached a new 52-week high.

By March, the share price had moved above N9,000, before crossing the N10,000 threshold in April.

Seplat became the first stock listed on the Nigerian Exchange to trade above N10,000 per share, closing at N10,450 on April 14 and recording a year-to-date gain of almost 80 percent at the time.

The stock has since moved above N11,000, putting its 2026 gain at more than 90 percent from its year-end 2025 level.

For Heirs Holdings, the sustained appreciation has effectively transformed the $500 million acquisition into a holding worth about $1 billion at the referenced market prices.

The rise in Seplat’s share price has coincided with a significant expansion in the company’s underlying business following its acquisition of Mobil Producing Nigeria Unlimited (MPNU).

The transaction transformed Seplat’s production scale and significantly expanded its offshore portfolio.

The impact was evident in the company’s 2025 financial performance, its first full year reflecting the enlarged asset base.

Revenue increased 144 percent to $2.73 billion, while adjusted EBITDA rose 137 percent to $1.28 billion.

Operating cash flow increased 276 percent to $1.17 billion, while net debt declined 25 percent to $673.3 million.

Seplat also increased its total dividend for 2025 by 52 percent to 25 cents per share.

The company’s 2026 performance has further strengthened the case for the market’s rerating.

In the first half of 2026, Seplat generated N2.50 trillion in revenue, while profit before tax rose 74 percent to N790.4 billion.

Profit after tax increased sharply from N42.5 billion in the corresponding period of 2025 to N225.5 billion.

The company also continued to strengthen its balance sheet.

Interest-bearing borrowings declined from about N1.44 trillion at the end of 2025 to N1.11 trillion by June, while cash increased to N598.3 billion.

The combination of higher earnings, stronger cash generation and lower leverage has provided additional support for the market’s more bullish assessment of the company.

Seplat’s enlarged asset portfolio has also translated into higher production.

Average working-interest production reached 139,509 barrels of oil equivalent per day (boepd) in the first half of 2026, compared with 134,492 boepd a year earlier.

Offshore assets accounted for more than half of total production, while natural gas liquids production more than doubled to 8,459 barrels per day.

The change represents a significant shift in the company’s production profile.

In 2025, average production had already risen to 131,506 boepd from 52,947 boepd in 2024 following the first full year of offshore consolidation after the MPNU acquisition.

The enlarged production base has therefore given Seplat greater diversification across assets and revenue streams than it had before the transaction.

Elumelu’s increasing involvement in Seplat adds another dimension to the investment.

After joining the company’s board in January 2026, he is expected to become chairman from January 1, 2027.

That would place Seplat’s largest shareholder in a more direct leadership position as the company seeks to consolidate the gains from the MPNU acquisition and pursue further growth.

The development also deepens Elumelu’s involvement in the Nigerian energy industry, alongside his interests across banking, power and other sectors through his investment holdings.

However, the sustained value of the Heirs Holdings investment will ultimately depend on Seplat’s ability to maintain production growth, manage costs, generate cash and translate its enlarged asset base into sustainable shareholder returns.

For now, the movement from an approximately $500 million investment to a stake worth around $1 billion highlights the scale of the market’s reassessment of Seplat since the MPNU acquisition.

More importantly, the company’s stronger earnings, higher production and improving balance sheet suggest that the share-price rerating is increasingly being supported by improvements in the underlying business rather than market sentiment alone.