Venture money is moving into security technology. That's the lead signal for this week's brief. We're also covering electricity payments. The government is using bonds to pay old debts. And the central bank seems to be easing up on interest rates.

Together, these signals suggest an adjustment on how stakeholders handle risk. And that adjustment runs across defence, infrastructure and macro policy. But external trade pressures remain a concern.

A security startup based in Abuja, Terrahaptix Inc., got $22 million more in venture funding, just weeks after getting $11.8 million. The money will go into locally built surveillance systems designed to protect critical infrastructure across Nigeria and other African markets.

The latest funding was led by Lux Capital and Resilience17 Capital, started by Flutterwave boss Olugbenga Agboola.

The speed of the funding round was reported to have been completed under two weeks. That indicates investors want tech that protects key infrastructure, and not just military gear.

Last year, Terrahaptix got a contract to put AI drones and towers at two of Nigeria’s hydroelectric dams. The dams are Shiroro and Gurara.

And now, they’re teaming up with the Defence Industries Corporation of Nigeria (DICON) to make surveillance gear at home. The partnership will use state-owned production facilities and aim to reduce reliance on imports and scale local output.

The timing also works. Exchange rate volatility has moderated compared to 2024 levels. That makes it easier to plan costs for hardware-heavy production that rely on imported components. And with U.S.-Nigeria security ties growing, protecting infrastructure is a big deal. 

The broader signal suggests venture capital sees defence tech as key infrastructure for Africa.

President Bola Ahmed Tinubu approved ₦2.8 trillion to pay electricity generators (GenCos) after an audit cut their ₦6 trillion backlog claim by more than half. Instead of cash, the government will issue bonds.

However, GenCos have rejected the audit outcome, disputing the charactersation of the ₦2.8 trillion as a final of outstanding obligation.

More than 70% of Nigeria’s grid-electricity generation is fueled by gas. Improved cash-flow predictability could unlock feedstock constraints that have kept national generation below 5,000MW despite installed capacity exceeding 13,000MW.

If the settlement and dispute resolution proceed smoothly, this bond conversion could improve the bankability of generation assets and bring more stability to Nigeria’s power sector.

Overlaying these sectoral shifts, the Central Bank of Nigeria cut interest rates by 0.5% to cut to 26.5%, after inflation slowed to 15.1% in January.

Governor Olayemi Cardoso said the decision was a “balanced evaluation of risks,” citing exchange-rate stability and improved food supply conditions.

While the policy stance remains restrictive in absolute terms, the direction of travel looks clearer.

But external risk lingers in the background.

A U.S. congressional report recommended blocking Nigerian beef exports to regional markets like Côte d'Ivoire, Ghana, South Africa and Senegal to compel disarmament among armed groups in Nigeria’s Middle Belt.

If the recommendation gets approved, it could hurt Nigeria's plans to boos meat exports, projected to earn ₦3.2 billion yearly.

The link between domestic security conditions and trade access introduces an additional geopolitical risk premium.

Processors eyeing AGOA or AfCFTA corridors may now require more sophisticated risk assessment of the policy environment.

This week’s signals suggest a recalibration of risk across in security, infrastructure, and trade channels. Long term success will depend on how well they are handled.

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