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Nigeria’s Digital Economy Sector Contributes N7 Trillion to Q1 2025 GDP, Ranks Among Top Performers

By
Ojukwu Emmanuel
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0

Nigeria’s digital economy has emerged as a powerhouse, contributing an impressive N7 trillion to the country’s GDP in the first quarter (Q1) of 2025, solidifying its position as one of the nation’s top-performing sectors.

This remarkable achievement underscores the transformative impact of technology and innovation on Nigeria’s economic landscape, driven by advancements in telecommunications, fintech, e-commerce, and digital services

According to a report released by the National Bureau of Statistics (NBS), Nigeria’s total real GDP grew by 3.13% in Q1 2025, down from 3.76% in Q4 2024. The Digital Economy sector accounted for 14.19% of the total N49.34 trillion real GDP.

The sector, comprising the Information and Communication (I&C) sector and the Financial Institutions (FI) sector, posted real GDP contributions of 10.59% and 3.60% respectively. Both sub-sectors ranked among the top 10 performers in the Q1.

The I&C sector recorded a year-on-year (YoY) growth of 7.40% in real terms, despite a -8.86% contraction quarter-on-quarter. Its contribution to total real GDP (10.59%) was an improvement over the 10.17% recorded in the same quarter of 2024. Notably, the telecommunications industry dominated the I&C sector, contributing N4.2 trillion out of the total N5.2 trillion, representing 80% of the sector’s value. The remaining 20% came from broadcasting, publishing, and creative media services.

The Financial Institutions sector, which includes banks, fintechs, and insurance providers, contributed N1.8 trillion to GDP, with financial institutions accounting for N1.6 trillion (90.74%) and the insurance industry contributing just under N200 billion (9.26%).

Nigeria’s digital economy has continued to show impressive growth. The sector revenue rose from US$5.09 billion in 2019 to US$7.13 billion and US$9.97 billion in 2020 and 2021, respectively. It is projected that the sector revenue will reach $18.30 billion by 2026. In terms of investment in start-ups on the African continent, Nigeria ranks ahead of South Africa, Egypt, Kenya, and Ghana.

A McKinsey study published in 2017 predicted that the digital economy in Nigeria would contribute 3.0 million new jobs and add $88.00 billion to the economy over a decade. However, for a thriving and inclusive digital economy, African countries such as Nigeria need to build the critical foundations of the digital economy.

These foundations are interdependent and require public and private sector solutions. In Nigeria, the National Information Technology Development Agency’s (NITDA) Digital Economy Development Department aims to help the Federal Government meet its targets set by its National Digital Economy Policy and Strategy (NITDA, 2022).

The department aims to facilitate an effective, inclusive, and sustainable digital economy by:

  • Transforming Business Models: Promoting the adoption of digital business models and markets across sectors to enhance economic competitiveness.

  • Creating an Enabling Environment: Providing guidelines, frameworks, and regulations to foster digital service exchanges and the trade of digital goods.

  • Promoting Digital Literacy: Implementing capacity-building programs to boost digital skills, supporting the government’s goal of achieving 70% digital literacy by 2027 and 95% by 2030.

  • Driving Economic Growth: Supporting initiatives to increase digitally enabled Micro, Small, and Medium Enterprises (MSMEs) and Integrated Digital Ecosystems (IDEs), contributing to job creation and economic diversification.

  • Fostering Innovation: Encouraging the development and integration of emerging technologies like AI, IoT, blockchain, and robotics to address local challenges and create economic opportunities.

This is driven by efforts to boost digital literacy, digital commerce promotion, technology adoption, and industry collaboration to transform digital business models and markets across all sectors and industries while providing an enabling environment for exchanges of digital services and digital goods.

Digital innovation and disruptive technologies is a crucial key engine to the growth of the Nigerian economy, and the achievement of the diversification from oil dependency.

As Nigeria looks into the future, supporting these efforts by strategic investments in digital literacy, infrastructure and creating key linkages are crucial.

“I No Longer Need to Lobby for FX”: BUA Cement Chairman Hails CBN Reforms, Sees Naira Strengthening to N1,200/$

By
Samuel Nwite
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0

The Chairman of BUA Cement Plc, Dr Abdul Samad Rabiu, says the Central Bank of Nigeria’s (CBN) ongoing foreign exchange reforms have effectively eliminated the era of lobbying for dollars—a practice he admitted was once routine for Nigerian businesses under the previous FX regime.

Rabiu, who spoke in Abuja on Monday during a media briefing following the company’s 9th Annual General Meeting, said the new FX framework has brought transparency and fairness to currency access, allowing businesses to plan with more confidence and less political maneuvering.

“I was making a joke a few weeks ago that I’ve only seen the current CBN Governor maybe twice since his appointment. That’s because I don’t need him,” Rabiu said. “Before now, I used to visit the CBN every two weeks to lobby for FX. That was the only way to survive.”

The billionaire businessman described the previous system as a distortion that created artificial scarcity and privilege. “The rate was N500 or N600 officially, but nobody could get it. On the street, it was closer to N1,000. It was an artificial rate,” he said.

In contrast, Rabiu praised the new FX system for unifying the market and closing the gap between the official and parallel rates.

“Now, the rate you get is what everyone else gets. You go to the bank, you get FX at the market rate,” he said, adding that the current policy environment fosters a level playing field for all businesses.

Naira Could Strengthen Further

Rabiu expressed optimism that the naira would continue its upward trajectory, predicting that the exchange rate could appreciate to around N1,200/$ in the coming months, down from highs of nearly N2,000/$ earlier in the year. He linked this optimism to increased transparency in FX flows and the market-driven approach adopted by the CBN.

The BUA chairman said this trend is already translating into lower commodity prices.

“We are beginning to see a decline in the cost of goods—cement prices are coming down, food prices too,” he noted.

FX Reforms Offset by Soaring Input Costs

However, Rabiu acknowledged that cement prices had earlier risen sharply due to cost pressures tied to FX volatility, imported machinery, and high energy costs.

“Despite these challenges, we’ve tried to keep our prices stable and fair. But energy and imported components really drove production costs up,” he explained.

BUA Cement’s Financials Defy Volatility

Despite macroeconomic headwinds, BUA Cement posted a remarkable 90.6 per cent revenue growth in 2024, reaching N877 billion—up from N460 billion in 2023. The company, however, reported FX-related losses of N93.9 billion in the same period, underscoring the lingering impact of currency depreciation earlier in the year.

Profit before tax rose 48.2 per cent to N99.63 billion, while profit after tax for the first quarter of 2025 alone stood at N81 billion—more than the entire earnings for the full year 2024. Rabiu projected that full-year 2025 earnings could hit N250 billion if current performance trends continue, buoyed by increased output, better FX conditions, and operational efficiencies.

Return on average capital employed rose to 15 per cent in 2024 from 10 per cent the previous year, while earnings per share grew to N2.18 from N2.05, representing a 6.3 per cent increase.

“This performance was driven by a combination of increased dispatch volumes and prudent pricing strategies, even as the Company absorbed rising input costs,” Rabiu said. He added that cash generation had also improved significantly, allowing BUA Cement to pay down import finance facilities and reduce its exposure to dollar-denominated obligations.

Having recently commissioned two new cement lines in Sokoto and Edo states, Rabiu disclosed that the company has reached its production target of 20 million metric tonnes per year and will not be pursuing further expansion in the short term.

“Our focus now is on consolidating operations, cutting costs, and improving efficiency,” he said.

BUA Bets on Local Content and LNG to Tame Energy Costs

Managing Director and CEO of BUA Cement, Yusuf Binji, also spoke at the AGM and emphasized that energy remains the company’s largest cost driver. He revealed that BUA is investing in a 700-tonnes-per-day liquefied natural gas (LNG) regasification plant to stabilize energy supply and cut costs.

Binji said the company had renegotiated existing service contracts to increase local content participation, which has helped in reducing FX exposure and improving cost efficiency. “We are focused on resilience, strategic agility, and delivering value in a volatile macroeconomic environment,” he said.

Rabiu reaffirmed the company’s commitment to rewarding shareholders, announcing a N2.05 dividend per share—a 94 per cent payout ratio.

“We remain committed to shareholder value and long-term sustainability,” he said.

The financial turnaround, strategic investments, and FX reforms have all contributed to a more stable outlook for BUA Cement in 2025, reinforcing the group’s position as one of Nigeria’s most formidable industrial players.

A Look At Trump Media & Technology Group’s $2B Bitcoin Investments

By
Paul Ugbede Godwin
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0

Trump Media & Technology Group, the company behind Truth Social, announced that it has acquired approximately $2 billion in Bitcoin and Bitcoin-related securities as part of its crypto treasury strategy. This move, which accounts for about two-thirds of the company’s $3 billion in liquid assets, includes an additional $300 million allocated to an options acquisition strategy for Bitcoin-related securities. The company plans to continue acquiring Bitcoin and may convert these options into spot Bitcoin based on market conditions.

CEO Devin Nunes stated that these assets aim to ensure financial freedom, protect against discrimination by financial institutions, and create synergies with a planned utility token for the Truth Social ecosystem. The announcement follows a $2.5 billion fundraising plan disclosed in May 2025, involving stock sales and convertible bonds. Shares of Trump Media (DJT) rose as much as 9% in early trading after the news.

By allocating two-thirds of its $3 billion in liquid assets to Bitcoin and Bitcoin-related securities, TMTG is heavily betting on cryptocurrency as a hedge against inflation, currency devaluation, or financial censorship. Bitcoin’s volatility, however, introduces significant risk, as its price can fluctuate dramatically (e.g., Bitcoin’s price has ranged from $30,000 to over $100,000 in recent years). A sharp decline could erode TMTG’s financial position, while a surge could bolster its balance sheet.

The move signals confidence in Bitcoin’s long-term value and aligns TMTG with the growing trend of corporate Bitcoin adoption (e.g., MicroStrategy, Tesla in the past). The 9% stock price surge for DJT post-announcement suggests investor enthusiasm, but sustained market confidence will depend on Bitcoin’s performance and TMTG’s execution of its crypto strategy. The $300 million options strategy for Bitcoin-related securities provides flexibility to pivot based on market conditions, potentially mitigating risk. However, converting options to spot Bitcoin could amplify exposure to volatility.

TMTG’s stated goal of protecting against “discrimination by financial institutions” aligns with a narrative of resisting centralized financial systems, often associated with “Big Tech” or “Big Finance.” This resonates with Bitcoin’s ethos of decentralization and censorship resistance, appealing to supporters skeptical of traditional institutions. By embracing Bitcoin, TMTG positions itself within the pro-crypto movement, which has gained traction among conservative and libertarian groups.

The planned utility token for the Truth Social ecosystem suggests an ambition to integrate blockchain technology into its platform, potentially for payments, rewards, or decentralized features. This could differentiate Truth Social from competitors but risks regulatory scrutiny, especially given the SEC’s strict stance on crypto tokens. The U.S. regulatory environment for cryptocurrencies remains uncertain, with potential crackdowns on unregistered securities or tax evasion.

TMTG’s Bitcoin holdings and planned token could attract attention from the SEC, IRS, or other agencies, especially given the company’s high-profile political associations. The announcement could fuel speculation in Bitcoin markets, particularly if perceived as a politically motivated move. Critics may argue it inflates Bitcoin’s price artificially, drawing scrutiny from regulators or market watchdogs.

Bitcoin’s accessibility is limited to those with technical knowledge or financial resources, potentially alienating TMTG’s broader user base. If the utility token becomes central to Truth Social, it could create barriers for non-crypto-savvy users, limiting platform adoption. The move aligns TMTG with pro-crypto conservatives and libertarians who view Bitcoin as a tool for financial sovereignty. Conversely, it may alienate critics who associate crypto with speculation, fraud, or environmental concerns (e.g., Bitcoin mining’s energy consumption).

By framing the acquisition as a defense against financial discrimination, TMTG reinforces a narrative of distrust in banks and government institutions. This resonates with its base but risks further polarizing those who support traditional financial systems or regulatory oversight. Bitcoin’s high entry cost and the technical complexity of crypto markets exclude many lower-income individuals, including some of TMTG’s target audience. This could exacerbate perceptions of economic elitism, even among supporters, if the benefits of TMTG’s crypto strategy.

TMTG’s heavy Bitcoin allocation contrasts with traditional corporate treasury strategies (e.g., holding cash or bonds). If successful, it could validate crypto as a mainstream asset, but a crash could fuel criticism that TMTG prioritizes speculative bets over stability, deepening divides between crypto advocates and skeptics. Integrating a utility token into Truth Social may appeal to crypto enthusiasts but could alienate less tech-savvy users, particularly older demographics who form a significant portion of TMTG’s base.

By doubling down on crypto, TMTG further differentiates itself from mainstream platforms like X or Meta, which have not heavily embraced blockchain. This could solidify Truth Social’s niche as a platform for a specific ideological and technological subculture but limit its broader appeal. The stock surge and media attention boost TMTG’s visibility, potentially attracting new investors and users to Truth Social. However, Bitcoin’s volatility and regulatory risks could lead to financial instability if not managed carefully.

If successful, TMTG’s crypto strategy could position it as a leader in the convergence of social media and blockchain, potentially influencing other platforms to follow suit. However, failure (e.g., a Bitcoin crash or regulatory crackdown) could damage TMTG’s credibility and financial health, reinforcing critics’ skepticism. The move entrenches TMTG in a polarizing space, aligning it with crypto’s anti-establishment ethos while risking alienation of those wary of speculative or unregulated markets.

TMTG’s $2 billion Bitcoin acquisition is a bold, high-risk move that strengthens its anti-establishment brand and aligns it with the pro-crypto movement. While it may enhance financial flexibility and appeal to a niche audience, it risks exacerbating divides between crypto advocates and skeptics, tech-savvy and traditional users, and those who trust versus distrust centralized institutions. The success of this strategy hinges on Bitcoin’s performance, regulatory developments, and TMTG’s ability to integrate crypto into Truth Social without alienating its core user base.

Mercurity Fintech’s $200 Million Solana Treasury Strategy Could Enhance Its Position In The Blockchain Space

By
Paul Ugbede Godwin
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0

Mercurity Fintech Holding Inc. (Nasdaq: MFH) announced that it secured a $200 million Equity Line of Credit Agreement with an entity named Solana Ventures Ltd. to launch a Solana-based digital asset treasury strategy. The initiative aims to position MFH as a long-term institutional participant in the Solana ecosystem, focusing on accumulating SOL tokens, generating yield through staking, validator nodes, and decentralized finance (DeFi) protocols, and investing in Solana-based projects like tokenized real-world assets and financial products.

The strategy complements MFH’s existing plans, including a $500 million DeFi basket treasury involving assets like Ethereum, XRP, Cardano, and BNB, and does not replace its Bitcoin investment strategy. Chief Strategy Officer Wilfred Daye highlighted Solana’s speed, cost-efficiency, and regulatory acceptance as key drivers for this move. However, controversy arose as Solana Ventures LLC, the official subsidiary of Solana Labs, denied any involvement in the agreement, stating it has not engaged in equity credit lines with public companies.

According to Wu Blockchain, MFH clarified that the deal involves a different entity with a similar name to Solana Ventures, though MFH has not publicly retracted its initial announcement or provided further details on the entity. This discrepancy remains unresolved. The news coincided with a 5.46% rise in Solana’s price boosting its market cap above $100 billion, and a 2% increase in MFH’s stock price to around $5.

The announcement contributed to a 5.46% increase in Solana’s (SOL) price, pushing its market capitalization above $100 billion with a 69.44% surge in trading volume to $8.69 billion. This reflects growing institutional interest in Solana as a high-performance blockchain for tokenized assets, DeFi, and real-time payments. MFH’s strategy to accumulate SOL, generate yield through staking and validator nodes, and invest in Solana-based projects (e.g., tokenized real-world assets and financial products) could drive liquidity and innovation within the Solana ecosystem.

This aligns with a broader trend of companies like DeFi Development Corp. (holding 999,999 SOL) and BIT Mining (planning $200–300M for SOL) adopting Solana for treasury strategies. By diversifying its treasury to include SOL alongside its $500 million “DeFi Basket” (involving Ethereum, XRP, Cardano, and BNB) and an $800 million Bitcoin strategy, MFH positions itself as a major player in blockchain-native treasury management, potentially attracting more institutional investors to Solana.

MFH’s focus on staking, validator operations, and DeFi protocols offers potential for long-term yield generation, enhancing its financial stability beyond traditional fintech services. The announcement led to a 2% increase in MFH’s stock price to around $5, with some reports noting a peak of 14.09% at $5.16, reflecting positive market sentiment. However, MFH’s financial challenges, including negative profitability and cash flow issues, suggest that the success of this strategy is critical for its valuation.

MFH’s move to bridge traditional finance with blockchain innovation, as articulated by Chief Strategy Officer Wilfred Daye, positions it to capitalize on Solana’s speed, cost-efficiency, and regulatory acceptance, potentially strengthening its market presence. The announcement reflects a growing trend of public companies diversifying treasuries with altcoins like Solana, Ethereum, and XRP, following MicroStrategy’s Bitcoin model. This shift involves active participation through staking and DeFi, unlike Bitcoin’s passive accumulation approach, but carries risks due to altcoins’ volatility and lower liquidity.

Solana’s growing regulatory acceptance, as noted by MFH, could encourage more firms to adopt similar strategies, though long-term success depends on navigating regulatory uncertainties. The controversy stems from Solana Ventures LLC, the official subsidiary of Solana Labs, denying any involvement in the $200 million deal, stating it has not engaged in equity credit line agreements with public companies.

MFH clarified that the agreement involves a different entity with a similar name, but has not retracted its announcement or provided further details, creating a divide in perception and credibility. The discrepancy raises questions about MFH’s due diligence and transparency. The failure to clarify the identity of “Solana Ventures Ltd.” or retract misleading statements could erode investor trust, potentially impacting MFH’s stock performance and partnerships.

If the entity named “Solana Ventures Ltd.” is unrelated to Solana Labs, MFH’s use of the name could invite legal scrutiny for misleading investors. Solana Labs may also face reputational challenges if the confusion persists. While the announcement initially boosted SOL’s price and MFH’s stock, the controversy could lead to divergent outcomes. Continued institutional interest in Solana (e.g., DeFi Development Corp., BIT Mining) may sustain SOL’s momentum, but MFH’s stock could face volatility if the controversy escalates.

The announcement highlights Solana’s rising appeal for institutional treasury strategies due to its high-performance blockchain and yield-generating opportunities. However, the controversy underscores the importance of transparency in crypto-finance deals. MFH’s failure to promptly clarify the identity of “Solana Ventures Ltd.” risks undermining its credibility, especially given its financial challenges (negative P/E ratio, cash flow issues). The broader trend of altcoin treasuries carries both promise and risk, as altcoins’ volatility and regulatory uncertainties could amplify losses compared to Bitcoin-focused strategies.

Solana’s ecosystem benefits from institutional interest, but the confusion around this deal could deter cautious investors unless resolved swiftly. Mercurity Fintech’s $200 million Solana treasury strategy could enhance its position in the blockchain space and bolster Solana’s ecosystem, driving liquidity and innovation. However, the controversy over Solana Ventures’ involvement creates a divide between optimistic market sentiment and skepticism about MFH’s transparency.

Coinwatch Launches ” The Coinwatch Track” For Market Makers

By
Paul Ugbede Godwin
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0

Coinwatch has launched “Coinwatch Track“, a real-time dashboard designed to help crypto projects monitor their market makers’ activities. The tool provides visibility into trading metrics such as order book depth, spread, and volume across exchanges, using market maker API keys processed securely via Trusted Execution Environments (TEEs) to protect privacy. This addresses challenges like opaque market maker performance, enabling projects to track liquidity, verify activity, and ensure accountability.

Currently, 12 market makers are integrated, including Amber, Ampersan, Auros, CyantArb, Flowdesk, Galaxy, GSR, IMC, Keyrock, LO:TECH, Pulsar, and STS Digital, with more expected to join. The platform also supports exchange listing processes and liquidity management for tokens. Coinwatch Track provides crypto projects with real-time insights into market maker performance, including metrics like order book depth, spread, and trading volume. This transparency helps projects ensure market makers are fulfilling their obligations, such as maintaining liquidity and minimizing price manipulation.

Projects can make data-driven decisions, optimize token performance, and hold market makers accountable, reducing the risk of underperformance or unethical practices. By integrating 12 major market makers (e.g., Amber, Auros, GSR) and using secure Trusted Execution Environments (TEEs) to protect sensitive data, Coinwatch fosters trust between projects and market makers.

The dashboard supports projects in navigating exchange listing requirements by providing verifiable liquidity metrics, streamlining the process. Smaller or newer projects may find it easier to meet exchange standards, potentially increasing the number of tokens listed on reputable platforms. The tool levels the playing field by giving smaller projects access to sophisticated monitoring tools previously available only to larger players with in-house analytics.

As more market makers join the platform, Coinwatch Track could set a precedent for standardized reporting and performance metrics in the industry. This may push market makers to adopt best practices, reducing predatory behaviors like wash trading or front-running, but it could also increase operational costs for market makers.

While Coinwatch Track empowers projects with data, access to the dashboard may come with costs (pricing details are not publicly available, but premium tools often require subscriptions). Smaller projects or those with limited budgets may struggle to afford it. This could create a two-tier system where well-funded projects gain a competitive edge through better market maker oversight, while smaller projects remain reliant on less transparent or manual monitoring methods.

Coinwatch could offer tiered pricing or free access for early-stage projects to bridge this gap. The dashboard’s advanced metrics (e.g., order book depth, spread analysis) require a degree of technical expertise to interpret and act upon. Projects without skilled analysts may underutilize the tool. Teams with technical resources will benefit more, potentially widening the gap between professionally managed projects and those run by less experienced teams.

Coinwatch could provide educational resources or simplified interfaces to make the tool more accessible to non-technical users. Only 12 market makers are currently integrated, and others may resist joining due to privacy concerns or the cost of compliance with Coinwatch’s API requirements. Projects working with non-integrated market makers may face reduced visibility, creating a divide between those using supported market makers and those using others.

Market makers not on the platform may lose business if projects prioritize Coinwatch-compatible partners. Coinwatch’s expansion to include more market makers will be critical to reducing this divide. While Coinwatch Track enhances transparency, it introduces a centralized platform for monitoring decentralized markets. Projects relying heavily on Coinwatch may cede some control to a third-party tool.

Coinwatch’s use of TEEs for data privacy is a step toward addressing security concerns, but broader adoption may require open-source components or decentralized alternatives. Crypto projects operate in varied regulatory environments, and market makers may face different compliance requirements based on jurisdiction. Coinwatch Track’s utility could vary depending on local regulations.

Projects in stricter jurisdictions may face challenges integrating with the platform if market makers or exchanges are restricted, creating disparities in tool adoption globally. Coinwatch could tailor its platform to comply with major regulatory frameworks, but this would require significant resources. The tool could reduce market manipulation by making market maker activities more transparent, potentially stabilizing token prices and increasing investor trust.

However, it may also increase scrutiny on market makers, potentially driving some to operate in less regulated or non-integrated environments. Coinwatch Track positions Coinwatch as a leader in crypto analytics, but competitors like Nansen or Dune Analytics could develop similar tools, intensifying competition. Widespread adoption depends on market maker participation and project willingness to integrate APIs. Resistance from either group could limit the tool’s impact.

Coinwatch Track is a significant step toward transparency and accountability in crypto market making, benefiting projects, investors, and exchanges. However, it risks creating divides based on access, technical expertise, market maker integration, centralization concerns, and regulatory differences. To maximize its impact and minimize inequities, Coinwatch should focus on affordability, user education, broader market maker integration, and regulatory adaptability.

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