Welcome back to 234Digest! After a brief pause while I focused on completing my debut mobile street photography ebook, the newsletter returns refreshed and revitalized.

Going forward, our Sunday editions will continue to deliver concise roundups of Nigeria’s economy, business, and culture. Meanwhile, Wednesdays will feature a focused deep dive into a single major news story, event, or profile that highlights Nigeria’s evolving narrative. Thank you for your patience—let’s continue exploring the stories that matter.

In this edition, we spotlight the launch of MonieWorld for UK-Nigeria remittances, rising inflation and fiscal pressures, a surge in solar energy investment, and Nigeria’s ambitions in mining and energy security. We also cover the latest on Nigeria’s electricity sector reforms, the Commonwealth Games bid, and the relentless spirit of Lagos Island’s market traders as featured in our Photo of the Day section.

It’s nearly midnight as I hit send on this newsletter, which I’m finishing up on my iPhone after a power outage knocked out my laptop. Let’s dive in.

Samuel Okocha, Curator & Editor, 234Digest

Quote of the day

"It makes it easy, quick, and reliable to send remittances, a critical source of fund for Nigeria’s economy."
— Tosin Eniolorunda, CEO, Moniepoint

Today’s briefs

Moniepoint launches MonieWorld for UK-Nigeria remittances

Moniepoint has launched MonieWorld, a new digital financial services platform targeting the UK’s African diaspora, especially Nigerians. The app allows users to send remittances to Nigeria instantly, at competitive exchange rates, and with no transaction fees. Payments can be made via bank transfers, cards, Apple Pay, and Google Pay.

Remittances are crucial for Nigeria, supporting household consumption, foreign exchange liquidity, and economic development. According to Nigeria’s central bank, remittances rose 9% to $20.98 billion in 2024, with the UK diaspora accounting for a significant share.

Inflation rises as oil prices and naira slide

Nigeria’s annual inflation rate climbed to 24.2% in March, reversing a two-month easing trend, according to the National Bureau of Statistics. The uptick comes amid a sharp selloff in oil prices—now about $65 per barrel, well below the $75 assumed in the 2025 budget—and a 4.2% naira depreciation against the dollar since early April. Oil output also fell 9% to 1.4 million barrels per day in March.

Economists warn that further naira devaluation may be needed to offset lower oil revenues, with Goldman Sachs noting that “risks are tilted toward fiscal slippage” as budget assumptions look increasingly optimistic. Inflationary pressures are expected to persist as import costs rise and the global trade war weighs on Nigeria’s main export earnings.

IMF: Reforms yet to benefit most Nigerians

The IMF’s latest Article IV mission notes that while Nigeria has taken important steps—removing fuel subsidies, halting monetary financing of deficits, and improving FX market functioning—poverty and food insecurity remain high. The Fund warns that macroeconomic uncertainty and falling oil prices continue to challenge the outlook. It urges authorities to channel fiscal savings from subsidy removal into critical investments and social protection, and to maintain tight monetary policy to anchor inflation expectations.

Solar Investment surges as fuel subsidy removal bites

In Nigeria, the demand for solar energy is surging. With the grid power being unreliable and petrol prices skyrocketing by nearly 500% due to the removal of fuel subsidies, generators have become less affordable. Arnegy, a Lagos-based clean technology company has successfully secured $15 million in Series B funding, increasing the total amount raised in this round to $18 million. This financial achievement enables the company to promote solar energy not only as a reliable power source but also as a cost-effective solution, indicative of a wider transformation within the market.

Nigeria and South Africa sign mining accord

Nigeria and South Africa have signed a partnership to boost cooperation in mining, including geological mapping, mineral data sharing, and joint exploration of agro and energy minerals. Nigeria is seeking to diversify away from oil, with mining currently contributing less than 1% to GDP. South Africa’s expertise is seen as key to unlocking Nigeria’s vast mineral resources, including gold, lithium, and iron ore.

Electricity subsidy cuts ease fiscal pressure

Nigeria has achieved a 35% reduction in electricity subsidies after raising tariffs for heavy users last year, according to Power Minister Adebayo Adelabu. The move has helped generate an additional ₦700 billion in revenue and reduced the government’s tariff shortfall from ₦3 trillion to ₦1.9 trillion. However, the sector remains burdened by high debt, grid failures, and reliance on costly generators. The government plans to pay down half of the ₦4 trillion owed to power generating companies this year.

Nigeria plans strategic petroleum reserve

Nigeria will establish a national strategic petroleum products stockpile this year to protect against global supply disruptions. The new reserve, modeled on the US Strategic Petroleum Reserve, will be significantly larger than the current 30-day supply buffer. Authorities aim to leverage expanding domestic refining capacity, especially from the Dangote Refinery, to build resilience against international market shocks.

Abuja in the running for 2030 Commonwealth Games

The Commonwealth Games Federation has confirmed Nigeria’s capital, Abuja, as a bidder to host the 2030 Games, alongside Gujarat (India) and Canada. If successful, this would mark the first time the Games are held in West Africa.

Photo of the day

And that’s a wrap. Until the next dispatch on Wednesday, have a great week ahead aa we keep on Nigeria’s evolving story.