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Sunday, 30 August 2026

Netanyahu vs Erdoğan: The Dangerous Game Unfolding in Syria, When Election Politics Meets Middle East Power Games

 

Netanyahu vs Erdoğan: The Dangerous Game Unfolding in Syria, When Election Politics Meets Middle East Power Games

Israel’s latest confrontation with Türkey over Syria may look, on the surface, like another episode in the increasingly complicated security rivalry unfolding across the Middle East. But beneath the diplomatic language and military warnings lies a much bigger question:

Is Benjamin Netanyahu trying to prevent a new strategic reality in Syria or is he deliberately manufacturing another external threat at a politically convenient moment?

That question has become difficult to ignore following Netanyahu’s claim that Israel and Syria had reached an understanding on maintaining a security status quo, and that Syria was on the verge of violating it by allowing Turkish forces to deploy at an air base near Aleppo.

Türkiye has strongly rejected the Israeli accusation.

And Washington’s own Syria envoy and ambassador to Türkiye, Tom Barrack, has offered an explanation that is potentially more damaging to Netanyahu than the original accusation itself.

Barrack suggested that Israel may have been “baiting” Türkiye, possibly because of domestic political calculations ahead of Israeli elections. He also raised the possibility of confusion between Israel’s military, Mossad and the Prime Minister’s Office.

Either explanation raises uncomfortable questions about how Israel is managing its increasingly complicated regional security environment.


What exactly is happening in Syria?

To understand the dispute, one has to look beyond Aleppo.

Syria has become one of the most contested strategic spaces in the Middle East following the collapse of Bashar al-Assad's government and the emergence of a new political order in Damascus.

The country is now caught between several competing interests.

Türkiye wants a stable Syria that does not become a base for Kurdish armed groups hostile to Ankara. Israel wants to prevent hostile military forces from establishing themselves close to its borders and has repeatedly demonstrated that it is prepared to use military force to enforce what it considers its security red lines.

The United States, meanwhile, wants to prevent Syria from becoming a battlefield between its regional partners.

And then there are Russia and Iran, whose influence in Syria has historically complicated the calculations of Israel, Türkiye and Washington.

The result is a country where a military deployment that Ankara considers defensive can be viewed by Jerusalem as a strategic threat.

That is essentially the background to the current dispute.

Why is Türkiye so important to Israel?

Türkiye is not an ordinary regional actor.

It is a NATO member, a major regional military power and a country with enormous influence over northern Syria.

Ankara already has substantial military infrastructure and relationships inside Syria. It also has considerable influence over Syrian opposition groups and the political and economic reconstruction of northern Syria.

That means that a deeper Turkish military presence in Syria could fundamentally change the balance of power.

For Israel, the concern is straightforward:

If Türkiye establishes a permanent military presence at strategic Syrian air bases, Israel may find itself operating in Syrian airspace in circumstances where Turkish forces are present.

That introduces the possibility of a direct confrontation between two powerful militaries.And that is precisely what makes Netanyahu's rhetoric so consequential.

Israel says it is defending the status quo—but what status quo?

This is where the Israeli argument becomes vulnerable to criticism.

Netanyahu's government argues that Syria must not be allowed to change the security arrangements that emerged after Assad's fall.

But Israel itself has repeatedly altered the military reality in Syria. Israel has conducted extensive strikes against Syrian military infrastructure, weapons facilities and other strategic targets. It has also expanded its military presence in areas bordering Syria.

Consequently, when Israel says another country is threatening to change the "status quo", its critics can reasonably ask:

Which status quo?

A status quo cannot mean that one side retains the right to continually change facts on the ground while demanding that everyone else preserve them.

That contradiction is at the heart of the current controversy.

Is Netanyahu trying to bait Erdoğan?

This is perhaps the most politically explosive possibility.

Türkiye's President Recep Tayyip Erdoğan and Netanyahu have become increasingly hostile toward each other, particularly over Gaza.

Erdoğan has been one of Netanyahu's most outspoken international critics and has repeatedly accused Israel of committing atrocities against Palestinians. Israel, for its part, has accused Türkiye of supporting forces and political movements hostile to Israel.

The relationship has therefore deteriorated dramatically. But neither country necessarily wants a direct military confrontation.

That is why Barrack's "baiting" explanation deserves attention.

If Israel deliberately exaggerated or publicised the Turkish deployment in order to provoke Ankara, it would represent a dangerous political calculation.

The objective could be to transform Türkiye from a diplomatic adversary into a security threat, allowing Netanyahu to campaign around the familiar Israeli political message:

Israel is surrounded by enemies and only a strong security government can protect the country.

That argument has enormous political power in Israel.


Elections change the equation

This is where domestic Israeli politics enters the story.

Netanyahu has survived politically through one of the most turbulent periods in Israel's modern history.

The October 7, 2023 Hamas attack shattered public confidence in the country's security establishment.

The subsequent Gaza war, hostage crisis, regional escalation and disputes over military strategy have continued to place enormous pressure on Netanyahu.

His political survival has therefore become inseparable from Israel's perception of security.

An external confrontation can change the political conversation.

Instead of debating:

  • the Gaza war,

  • hostage negotiations,

  • the government's handling of October 7,

  • Netanyahu's political future,

  • economic pressures,

  • or disagreements within the security establishment,

the political debate can suddenly become:

"Who can keep Israel safe?"

This is why the Turkish dimension is politically sensitive.


But there is a dangerous flaw in this strategy

Türkiye is not Iran.It is not Hezbollah.It is not Hamas. And it is not an isolated militia.

Türkiye possesses one of the largest militaries in NATO and operates sophisticated air and land forces.

Any Israeli strategy that accidentally pushes Türkiye into a direct military confrontation would therefore carry extraordinary risks.

A confrontation between Israel and Türkiye could also create problems for the United States.

Washington has spent years trying to manage its relationships with Israel and Türkiye simultaneously.

The United States cannot easily afford to see two of its strategically important partners move toward military confrontation.

This explains why Barrack's intervention is significant. He is not merely a Turkish commentator.

He is the US ambassador to Türkiye and the American special envoy for Syria.

If Washington is publicly floating the possibility that Israel was deliberately baiting Türkiye, then Netanyahu's government should take notice.


The "confusion" explanation is even more troubling

Barrack's second explanation—that there may have been confusion between the Israeli military, Mossad and Netanyahu's office—raises an entirely different problem.

Israel's security apparatus is famously sophisticated.

The Israel Defense Forces, Mossad, Shin Bet and the Prime Minister's Office constitute one of the most powerful security establishments in the world.

Yet Israel has already experienced the consequences of intelligence and institutional failures.

The October 7 attack exposed profound weaknesses in intelligence assessment, military preparedness and political decision-making.

Three years after that catastrophe, any suggestion of another serious disconnect between the military, intelligence agencies and political leadership would be alarming.

A country operating in a region this volatile cannot afford competing foreign-policy messages coming from different branches of its security establishment.


Syria could become the new Israel–Türkiye fault line

The larger issue is that Syria is rapidly becoming the place where Israeli and Turkish strategic interests collide.

Türkiye's priorities include:

1. Preventing Kurdish armed groups from establishing an autonomous military zone along its border.

2. Maintaining influence over Syria's political transition.

3. Preventing another large refugee crisis.

4. Building economic and security influence in post-Assad Syria.

Israel's priorities are different:

1. Preventing hostile military forces from approaching its borders.

2. Restricting the transfer of advanced weapons to groups it considers threats.

3. Maintaining freedom of military action in Syrian airspace.

4. Preventing Syria from becoming a platform for attacks against Israel.

These objectives can coexist—but they can also collide spectacularly. Netanyahu may be underestimating Erdoğan

There is another reason the current escalation is dangerous.

Erdoğan is unlikely to accept being publicly portrayed as a destabilising force in Syria without responding.

Türkiye has its own domestic political considerations, regional ambitions and security concerns.

But Erdoğan also understands the danger of a direct war with Israel.

The rational Turkish strategy, therefore, is likely to be maximum pressure without crossing the threshold into direct conflict.

That could mean diplomatic pressure, military positioning, economic measures and stronger political involvement in Syria. Israel, meanwhile, could respond with more military activity.

This creates the classic danger of escalation:

Neither side initially wants war, but both sides keep taking actions that make war increasingly possible.


America is now in an uncomfortable position

Washington's role will be critical. The United States has traditionally maintained a special relationship with Israel while also regarding Türkiye as an important NATO ally.

Syria puts these relationships on a collision course. Washington therefore has an incentive to establish clear rules:

  • where Turkish forces can operate;

  • where Israeli forces can operate;

  • what constitutes a legitimate military target;

  • how airspace incidents will be prevented;

  • and how both countries communicate during military operations.

Without such mechanisms, Syria could become the location where a misunderstanding between Israel and Türkiye produces a crisis neither government intended.

The Netanyahu problem

The fundamental problem for Netanyahu is that almost every regional development now has a domestic political dimension.

After October 7, Israeli voters have become acutely sensitive to security.

Netanyahu understands that political environment better than almost anyone. But there is a difference between using national security as a political issue and allowing political considerations to influence national security decisions.

That distinction matters enormously.

If the Turkish allegation was genuinely based on credible intelligence, Israel should present its evidence through appropriate diplomatic and security channels.

If it was a misunderstanding, Israel should clarify it quickly. But if the accusation was deliberately amplified to provoke Türkiye or create a political narrative ahead of elections, then the strategy could prove disastrously short-sighted.

The real danger is not Türkiye, it is miscalculation. 

The Middle East already has enough active fronts.There is Gaza.There is the West Bank.There are tensions involving Lebanon and Hezbollah.There is the Iranian dimension. There is instability in Syria.

And there are competing American, Russian and regional interests. Adding a direct Israel–Türkiye confrontation to this environment would be extraordinarily dangerous.

The irony is that Netanyahu's stated objective is presumably to make Israel safer.Yet provoking a military crisis with Türkiye could produce the opposite result.

A Turkish military presence in Syria may be a strategic problem for Israel. But a direct Israeli-Turkish confrontation would be a much bigger one.

Netanyahu should resist the temptation of another enemy

There is a temptation in Israeli politics to frame every strategic challenge as another existential threat.

Some threats are unquestionably real. But not every disagreement requires military escalation.Türkiye and Israel have profound disagreements over Gaza, Syria and the future of the Middle East. Those disagreements are unlikely to disappear.

What should disappear, however, is the idea that military brinkmanship is the automatic answer.

Netanyahu's government should therefore answer some basic questions.

What exactly did Türkiye do?

What evidence does Israel possess?

What agreement with Syria was allegedly violated?

Who authorised the public accusation?

And perhaps most importantly:

Was the objective to prevent a Turkish military deployment—or to provoke Türkiye into becoming Israel's next major security adversary?

It is a warning about the dangerous intersection of Israeli foreign policy, military strategy and domestic politics.

Israel has already paid a terrible price for intelligence failures and institutional misjudgements.

It should be extremely careful not to replace one form of miscalculation with another.Because Syria does not need another war.

And the last thing the region needs is for Israel and Türkiye—two of the Middle East's most powerful military actors—to turn a dispute over an air base into a confrontation that neither side can easily control.

REITs, OMO Bills and the Search for Better Returns

By Jacqueline Nnadigwe

High interest rates make fixed-income securities attractive, but property investors are betting on longer-term income and capital growth

Nigerian investors are increasingly faced with a difficult choice: should they put their money in relatively short-term fixed-income instruments such as Open Market Operation (OMO) bills, or invest in Real Estate Investment Trusts (REITs) for exposure to the property market?

The answer depends largely on an investor's risk appetite, investment horizon, income needs and expectations about interest rates and inflation.

What are OMO bills?

OMO stands for Open Market Operations, a tool used by the Central Bank of Nigeria (CBN) to manage the amount of money circulating in the economy.

In simple terms, an OMO bill is a short-term investment instrument through which investors put money into securities issued by the CBN. The investor receives a return based on the price paid for the bill and its value at maturity.

For investors, one major attraction is that OMO bills are generally viewed as relatively low-risk investments because they are associated with the central bank and government securities market.

They can therefore appeal to investors who are more concerned about preserving their capital and earning a predictable return over a relatively short period.

However, "low risk" does not mean "no risk". Investors still face issues such as inflation, changing interest rates, liquidity and the risk of having to reinvest their money at lower rates when the investment matures.

What are REITs?

Real Estate Investment Trust, or REIT, provides investors with a way to invest in real estate without having to buy an entire property.

A REIT pools money from investors and uses it to own or invest in income-generating properties such as office buildings, shopping centres, residential properties, warehouses and hotels.

The properties can generate rental income, part of which may be distributed to investors.

For example, instead of an individual needing hundreds of millions of naira to purchase an office building, the investor can buy units or shares in a REIT and gain exposure to a portfolio of properties.

REITs can provide investors with income as well as the potential for capital appreciation if the underlying assets or the REIT's market value increase.

The trade-off is that REITs can fluctuate in value and are exposed to the performance of the property market and broader economic conditions.

Why the choice matters now

The comparison has become particularly important in an environment where Nigerian interest rates have been elevated.

When fixed-income instruments offer attractive yields, investors may be tempted to choose them over assets such as equities and REITs.

The logic is straightforward: if an investor can earn a relatively attractive return over a short period from a government or central-bank-related security, taking additional risks in the property or stock market may seem less appealing.

This creates what analysts often call an "opportunity cost."

In layman's terms, it means:

If I put my money here, what am I giving up by not putting it somewhere else?

For REITs to become more attractive relative to high-yielding fixed income, investors may want to see the potential for property income and capital growth to compensate them for taking on additional risk.

But REITs have a different advantage

REITs should not necessarily be viewed simply as competitors to OMO bills.

They serve different purposes in an investment portfolio.

An OMO bill is primarily a fixed-income investment, while a REIT provides exposure to real estate.

An investor holding a REIT could benefit from rising rental income and increasing property values over the long term. However, the market price of a publicly traded REIT can also fall.

This means REITs may be more suitable for investors who have a longer investment horizon and can tolerate fluctuations in the value of their investment.

Inflation remains a major consideration

For Nigerian investors, comparing the headline return on an investment with the country's inflation rate is crucial.

An investment can generate a high nominal return—the return stated in naira—but its real return may be much lower after taking inflation into account.

For example, if an investment earns 20 per cent but prices in the economy rise by a similarly high rate, the investor's purchasing power may not have increased by 20 per cent.

This is particularly important for long-term investors because inflation can gradually erode the value of money.

So, where should investors put their money?

There is no universal answer.

For an investor whose priority is capital preservation, relatively predictable returns and a shorter investment period, OMO bills and other high-quality fixed-income instruments may be attractive.

For an investor seeking long-term exposure to real estate, rental income and potential capital appreciation, REITs may offer a more suitable option, although with greater market risk.

Importantly, investors do not necessarily have to choose one over the other.

A diversified portfolio could contain a combination of fixed-income securities, REITs, equities, cash and other investments, depending on the individual's financial goals and risk tolerance.

Notable Nigerian OMO Auctions

1. 2023 OMO auctions
The CBN resumed issuing OMO bills more actively in 2023 after a period when OMO issuance to domestic investors had been relatively restricted. Some of the 2023 auctions attracted strong investor interest, particularly because of the relatively attractive yields.

2. 2024 OMO auctions
OMO bills remained an important instrument in the CBN's liquidity-management operations. The CBN conducted several auctions during the year, with yields reflecting the country's high-interest-rate environment.

NOTABLE REITs IN NIGERIA

1. UPDC REIT

One of the best-known Nigerian REITs is UPDC Real Estate Investment Trust (UPDC REIT).

It was launched in 2015 and is managed by UPDC REIT Management Limited. The REIT provides investors with exposure to commercial real estate rather than requiring them to purchase properties directly.

Its portfolio has included properties such as office buildings, residential properties and other commercial real estate assets.

2. Sunu II REIT

Sunu II REIT is another Nigerian real-estate investment vehicle that has attracted attention in the market. It provides investors with exposure to income-generating real estate and illustrates the development of Nigeria's collective property-investment market.

3. UHOM REIT

UHOM REIT is another example of a Nigerian REIT structure, giving investors access to real estate through a pooled investment rather than direct ownership of individual properties.

Moments in History When OMO Bills became attractive

1. The famous 2019–2020 OMO period
CBN used OMO bills extensively to mop up excess liquidity from the financial system. Yields became very attractive, and OMO bills became particularly popular among institutional investors.

At the time, OMO bills became extremely attractive to investors because of their high yields and relatively low perceived risk.

This created a difficult environment for other asset classes because investors could obtain attractive returns without taking as much market risk.

In October 2019, the CBN also introduced restrictions that effectively prevented many domestic investors from participating in OMO auctions, leaving primarily banks and foreign portfolio investors. This made OMO bills a major topic in Nigeria's investment market.

Moments in History When REIT became attractive

1. 2020–2021: Low interest rates changed the equation

During the COVID-19 period, Nigerian interest rates fell significantly. Returns on some traditional fixed-income investments became less attractive.

That made income-generating assets such as REITs more interesting to investors looking for alternative sources of income.

The appeal was essentially:

"If I can't get as much income from fixed income, can I get it from property?"

2.  2021–2022: Investors looked for protection against inflation

As inflation became a bigger concern, real assets—including property—received greater attention.

Property is often considered a potential inflation hedge, because landlords can sometimes increase rents as the cost of living and replacement costs rise.

However, this isn't automatic. Nigerian property prices and rents don't always move perfectly with inflation, and REITs themselves can fall in market value.

3. UPDC REIT Establishment

UPDC REIT is one of the most established name when discussing the history of Nigerian REITs.

It was launched in 2015, giving investors a way to participate in commercial real estate without directly buying and managing buildings.

Its appeal is particularly useful for the REIT concept because investors can potentially receive distributions from property income, while the value of their units can also rise or fall.

But there's an important twist

REITs haven't always been attractive relative to Nigerian fixed income.

When interest rates rose sharply from 2022 onward, investors could obtain very attractive yields from government securities and other fixed-income products.

That made the calculation more difficult:

Why take the price risk of a REIT when I can get a high yield from a relatively low-risk fixed-income instrument?

 In very simple terms:

Low interest rates → REITs can look more attractive

High interest rates → OMO bills/T-bills/bonds can look more attractive

But it's not a hard rule. REITs can still perform well when rates are high if their rental income, occupancy and property values are strong.

The bottom line

The choice between OMO bills and REITs is ultimately a choice between relative certainty today and potential growth over time.

OMO bills may offer investors a relatively predictable short-term return, while REITs offer exposure to the potential long-term benefits of real estate.

For Nigerian investors, the most important questions are therefore not simply "Which investment pays more?", but: 

How long can I leave my money invested? 

How much risk can I tolerate?

What What will inflation do to my returns? And what role do I want this investment to play in my overall portfolio?

For latest information one should regularly check

  • CBN — latest OMO auction results, rates and maturities
  • FMDQ Exchange — Nigerian fixed-income market data and OMO/T-bill information
  • SEC Nigeria — registered REITs and current public offers
  • Nigerian Exchange (NGX) — prices and announcements for listed REITs
  • HOW CAN INDIVIDUALS TRADE OMO BILLS AND REIT RESPECTIVELY

    FOR OMO BILLS

    OMO bills are not normally bought like ordinary shares on the NGX. They are CBN securities, and access is generally through banks and authorised primary dealers/brokers.

    In practical terms, an individual would:

    1. Contact a bank or authorised investment/stockbroking firm that offers access to the Nigerian fixed-income market.
    2. Ask whether it currently has OMO bills available to retail investors or can facilitate a purchase.
    3. The institution tells you the maturity, price/yield, minimum investment and settlement terms.
    4. You transfer the money and the security is purchased on your behalf.
    5. You receive the proceeds at maturity according to the terms of the bill.
    6. Important: OMO availability to individuals has changed over time. The CBN's rules have also changed, so an individual shouldn't assume that an OMO auction is open to retail investors simply because the CBN is conducting one.

      Also don't confuse OMO bills with Nigerian Treasury Bills (NTBs). Both are short-term government-related securities, but they are different instruments and are issued through different processes.

      With an OMO bill, the individual is primarily buying a short-term debt security and holding it until maturity or potentially selling it through the fixed-income market, depending on the instrument and access provided by the intermediary

      How to invest in a REIT

      This is generally more straightforward if the REIT is listed on the Nigerian Exchange (NGX).

      An individual can:

      1. Open a CSCS account and a trading account with a licensed stockbroker.
      2. Fund the brokerage account.
      3. Search for the listed REIT on the broker's platform or instruct the broker to buy it.
      4. Buy units/shares in the REIT, just as you would buy shares in a listed company.
    So, for an ordinary Nigerian investor who wants something they can easily buy and sell like a stock, a listed REIT is generally the more familiar route. OMO bills require access through the appropriate fixed-income channel

      This article is for general information and is not personal investment advice. Investors should consider the specific terms, risks and costs of any security before investing.



    Saturday, 29 August 2026

    FTSE Frontier Return Could Bring Fresh Foreign Demand for Nigerian Banks, MTN, Nestlé

    FTSE Frontier Markets Index):

    In simple terms: it’s a list/index of smaller, less-developed stock markets around the world that are considered a step below “emerging markets.”

     Think of the categories like this:

    Developed markets → US, UK, Japan
    Emerging markets → India, Brazil, China
    Frontier markets → smaller/developing markets such as Vietnam, Romania, Kenya, etc.

    Nigeria’s return to the FTSE Frontier Index Series could create a new wave of interest in the country’s stock market, particularly in large, liquid companies such as Tier 1 banks, MTN Nigeria and Nestlé Nigeria.

    The move is important because FTSE indexes are followed by global fund managers, exchange-traded funds (ETFs) and other institutional investors. When a country or its companies become part of an index tracked by these investors, some funds may need to increase their holdings in those stocks to keep their portfolios in line with the benchmark.

    This could translate into fresh foreign capital for Nigeria’s equity market and improve trading activity in some of its biggest companies.

    Nigerian banks could be major beneficiaries

    Nigerian Tier 1 banks are among the companies that could attract renewed attention from foreign investors.

    The banks—such as Access Holdings, Zenith Bank, GTCO, First HoldCo and UBA—are some of the most heavily traded stocks on the Nigerian Exchange. They also have large market capitalisations and significant operations across Nigeria and, in some cases, other African markets.

    However, Nigerian bank shares have historically traded at lower valuations than many of their counterparts in emerging and frontier markets.

    One major reason has been currency risk.

    The naira has experienced several sharp periods of depreciation, making Nigerian assets more difficult for foreign investors to value. A bank may report strong growth in naira terms, but when an overseas investor converts those returns into dollars or another foreign currency, the gains can be significantly reduced by exchange-rate losses.

    For example, if a bank’s share price rises by 30 per cent in naira terms but the naira loses 20 per cent of its value against the dollar over the same period, a foreign investor may see a much smaller return in dollar terms.

    This currency uncertainty has historically encouraged some international investors to demand a discount before putting money into Nigerian stocks.

    Why the FTSE development matters

    Nigeria’s inclusion in the FTSE Frontier Index Series could help address one part of that problem by making the Nigerian market more visible to international investors.

    Index-tracking funds generally invest according to the composition of the benchmark they follow. If Nigerian companies receive larger weights in the index, funds tracking the index may have to buy more of those shares.

    This does not mean every Nigerian stock will automatically receive large foreign inflows. Companies must meet requirements relating to factors such as market size, liquidity and foreign ownership availability.

    The biggest and most liquid companies are therefore likely to be in a stronger position to benefit.

    MTN Nigeria and Nestlé could also gain

    The potential beneficiaries extend beyond the banking sector.

    MTN Nigeria, one of the country’s largest listed companies, could attract increased institutional interest because of its size, liquidity and position in the telecommunications industry.

    The company has also been dealing with the impact of naira depreciation, rising operating costs and changes in the telecommunications market. Greater foreign participation could improve demand for the stock, although investors will continue to pay close attention to the company’s earnings, foreign-exchange exposure and dividend outlook.

    Nestlé Nigeria is another major consumer company that could attract attention.

    As one of the country’s leading food and beverage manufacturers, Nestlé has strong brand recognition and a large domestic market. However, like many Nigerian companies, it has faced higher costs arising from inflation, imported inputs and foreign-exchange pressures.

    For foreign investors, the FTSE exposure could put companies such as Nestlé back on the radar of global funds looking for opportunities in frontier markets.

    More foreign money could improve the market

    One of the biggest potential benefits of increased institutional participation is better liquidity.

    A market with more buyers and sellers generally allows investors to enter and exit positions more easily. Higher trading volumes can also make share prices more reflective of market demand and reduce the difficulty of buying or selling large positions.


    For Nigerian companies, greater foreign participation could also help improve price discovery.

    In simple terms, if more international investors are willing to buy Nigerian shares, companies that are considered undervalued could see stronger demand and potentially higher valuations.

    But the FTSE return is not a guarantee of higher share prices

    Despite the potential benefits, investors should not assume that index inclusion alone will trigger a sustained rally in Nigerian equities.

    Foreign investors will still consider several factors, including the stability of the naira, inflation, interest rates, corporate earnings, dividend payments, economic growth and government policies.

    The availability of foreign exchange will also remain important. International investors need confidence that they can convert their investment proceeds and dividends back into foreign currency when they decide to leave the market.

    For banks in particular, investors will continue to monitor asset quality, non-performing loans, capital levels, interest margins and the impact of the broader economy on borrowers.

    A potential turning point for Nigeria’s capital market

    Nigeria’s return to the FTSE Frontier Index Series therefore represents more than an index classification.

    It could provide an opportunity for the Nigerian Exchange to regain some of the attention it lost from international investors during years of currency instability and market-access concerns.

    The immediate beneficiaries are likely to be the market’s largest and most liquid companies, particularly Tier 1 banks, MTN Nigeria and major consumer and industrial stocks.

    If the development is followed by sustained economic reforms, improved foreign-exchange liquidity and stronger corporate earnings, Nigeria could become more attractive to global investors.

    For Nigerian banks, which have long traded below the valuations of some international peers because of currency and country risks, increased foreign demand could provide an opportunity for the market to reassess their value.

    The FTSE return may not solve Nigeria’s investment challenges overnight. But it could be an important step towards putting Nigerian equities back in front of a much larger pool of global capital.

    Fuel Subsidy Savings Released: Analysis and Breakdown: A government Transferred Pain to its citizens, yet earning marginally higher

    Subsidy Removal Time Line

    Period What Happened Fiscal/Political Effect
    Before May 2023 Government subsidised PMS
    (Premium Motor Spirit)
    Cheap petrol, but a large and
    Increasingly Controversial Fiscal Burden
    May–June 2023 Tinubu announced subsidy removal Petrol prices jumped sharply
    2023–2024 Naira depreciation Plus
    higher crude/refining costs
    Petrol prices rose dramatically again
    2024 onward
    Dangote refinery began supplying PMS;
    NNPCL pricing remained politically sensitive
    Debate shifted toward whether
    subsidy had really disappeared entirely
    2025–26 Government continued defending subsidy
    removal while pricing interventions persisted
    Question became: is the subsidy gone,
    or merely hidden/reconfigured?


    Tinubu’s May 29, 2023 declaration that “fuel subsidy is gone” ended the federal government’s long-running practice of keeping petrol prices artificially low by absorbing part of the cost. The immediate fiscal logic was straightforward: But subsidy payments had become enormously expensive, opaque and difficult to sustain.

    But the story did not end with the subsidy’s removal. The subsidy shifted from an explicit government expenditure into a much larger cost borne by households and businesses through higher petrol prices, transport fares, food prices and inflation.

    Every naira used to keep petrol artificially cheap was a naira unavailable forinfrastructure, health, education, debt service or other public spending. By eliminating the subsidy, Tinubu's government gained substantial fiscal space and reduced one of the country's biggest recurring drains.

    The problem is that Nigerians experienced the reform not as fiscal consolidation, but as a price shock.

    .Tinubu's subsidy gamble, rests on a proposition: short-term pain in exchange for long-term economic stability. That proposition is defensible. But it only works politically if the savings are visible in Nigerians' lives.

    If subsidy savings are swallowed by debt service, waste, weak public services and an inefficient state, Nigerians have every reason to ask: If we are paying the full price of petrol, where exactly is the benefit of removing the subsidy? That is the central weakness of the government's narrative.

    Bottom line: Tinubu did not simply “save Nigeria money” by removing the fuel subsidy. He reallocated the cost . The federal government reduced a huge and distortionary fiscal liability, while Nigerian households absorbed a substantial share of the adjustment through higher energy, transport and food costs. Whether the policy becomes an economic success depends on what government does with the fiscal space it created.

    SUBSIDY REMOVAL SAVINGS ANNOUNCED

    The Tinubu administration’s newly released figures provide an important answer to one question but leave a much bigger one unresolved.

    According to Finance Minister Taiwo Oyedele,

    subsidy removal and other reforms generated ₦15.8 trillion in savings for the Federation Account over the period under review. But the government also says it spent ₦30.64 trillion in additional expenditure.


    The political argument is therefore no longer simply ,“How much did subsidy removal save?” It is: Where did the money go, and did Nigerians receive enough tangible benefits to compensate for the economic shock caused by subsidy removal? The ₦15.8 trillion subsidy-related savings were distributed as follows:

    . <

    There is an important point here: the ₦15.8 trillion was not ₦15.8 trillion sitting in Abuja's bank account. It accrued to the Federation Account and was shared across the three tiers of government. That distinction matters enormously when assessing whether ordinary Nigerians benefited. What the additional ₦30.64tn was spent on, The minister's breakdown is revealing: Together, these four categories account for the government's stated ₦30.64 trillion in additional expenditure.

    1. Wages: some relief, but not necessarily real income relief, The largest item was ₦9.39 trillion in wage adjustments. On paper, this is one of the clearest areas in which Nigerians could have received relief. Government increased expenditure to compensate workers for the changed economic environment. Higher nominal wages can help workers cope with the sharp increase in the cost of living following the removal of the petrol subsidy.

    But there is a critical distinction between higher wages and higher purchasing power. If salaries rise while food, transport, electricity, rent and other necessities rise faster, workers can receive more naira while effectively becoming poorer. That is particularly important in evaluating the subsidy reform. Editorial verdict: Partial relief. The wage spending represents an attempt to cushion workers, but the headline figure alone cannot demonstrate that Nigerian households became better off. The relevant measure is real income after inflation, not simply how many naira were added to payrolls.

    2. External debt servicing: Relief for government, not directly for households The second-largest expenditure was ₦9.37 trillion on external debt servicing. This is where the government's argument becomes considerably harder to sell to the average Nigerian.

    Debt servicing can be fiscally necessary. A government that fails to service its obligations risks damaging its creditworthiness, increasing borrowing costs and creating further financial instability. But debt repayment is not the same thing as delivering a new road, hospital, cheaper electricity or lower food prices. Government must learn to exhaust options before jumping to debts. This will help reduce debt servicing to manageable levels, N9.37 trillion hurts the economy. Debt servicing may protect the government's balance sheet without immediately improving a household's balance sheet.
    A Nigerian struggling with ₦1,000-plus petrol prices, expensive food and high transportation costs does not experience a ₦9.37 trillion debt-service payment as direct economic relief.

    3. Infrastructure: Here the government has a stronger argument. ₦6.47 trillion was allocated to infrastructure. Infrastructure spending can produce benefits that Nigerians actually feel better roads, transportation networks, water systems, public facilities, power infrastructure and other productive assets. But again, allocation is not the same as impact.

    The crucial questions are:
    a. Which projects received the money?
    b. Where are they located?
    c. How much was actually spent?
    d. Were projects completed?
    e. What did they cost?
    f. What measurable economic benefit did they produce?


    If the ₦6.47 trillion translates into functioning infrastructure, it can become a genuine long-term dividend of reform. If it is merely announced as expenditure, Nigerians have little reason to count it as relief.

    4. Electricity subsidies:The government says ₦3.14 trillion went into electricity subsidies. it was deployed to cushion electricity costs.This is perhaps the most interesting item because electricity prices directly affect households and businesses. Without intervention, electricity costs could have been even higher for some consumers. In that sense, subsidy spending can represent prevented pain rather than visible relief.
    But there is a complication. A subsidy that keeps tariffs down does not necessarily solve the underlying electricity problem. Nigerians still care about: price , reliability, hours of supply. If a household pays a subsidised tariff but continues to rely heavily on petrol or diesel generators, the effective cost of electricity remains high. The bigger problem:
    ₦15.8tn saved versus ₦30.64tn spent, This is where the government's presentation deserves particularly careful scrutiny. The administration says it generated approximately:

    Against this, additional expenditure was approximately: ₦30.64 trillion,The two numbers are remarkably close. But there is an important accounting lesson here. Borrowing is not savings: The ₦11.85 trillion in incremental borrowing represents additional financing, not money created by subsidy removal. That means it would be misleading to portray the entire ₦30.77 trillion as money “saved” by removing the subsidy. The cleaner interpretation of the government's figures is: Subsidy removal created fiscal space, while additional revenue and borrowing also provided resources that enabled the government to finance expenditure.
    That is a very different proposition from saying Nigerians' subsidy savings were simply converted into public services.
    So, did Nigerians experience relief? The honest answer is: Not really , but the figures supplied by government do not yet establish that Nigerians are better off overall.

    Therefore, Nigerians should not judge the reform simply by asking how much government saved. They should ask: What did the average Nigerian gain after accounting for the cost of losing the subsidy? That calculation requires household-level indicators, not just government expenditure figures. The Tinubu administration deserves credit for finally putting numbers behind its claim that subsidy removal created fiscal savings. ₦15.8 trillion is a substantial figure. But it is not, by itself, evidence of economic success. The real test of reform is not whether government revenue increased. It is whether the resulting resources produced better living standards, stronger public services, higher real incomes and a more productive economy. And on that score, the government's figures leave considerable room for questioning.


    A government can save billions while citizens become poorer. It can spend trillions while public services remain inadequate. It can increase wages while inflation destroys purchasing power. And it can spend heavily on infrastructure without delivering infrastructure that citizens can actually use.
    The most revealing figure in Oyedele's presentation may therefore not be the ₦15.8 trillion saved. It may be the gap between government’s additional resources and Nigerians' lived experience.

    Until the administration can demonstrate, sector by sector, what ₦15.8 trillion in subsidy savings has translated into for the average Nigerian, the phrase “subsidy savings” remains more compelling as a fiscal statistic than as a household reality? The money may have been saved. The harder question is whether Nigerians have been saved from the consequences of the reform.

    The picture is stark: Nigeria moved from subsidising petrol consumption to making consumers absorb the market price and the transition coincided with a dramatic petrol-price shock. Inflation also accelerated. That does not mean subsidy removal was solely responsible Nigeria's inflation story also involves the naira's depreciation, food supply constraints, monetary conditions and other structural problems. But fuel is an economy-wide input, so its price shock inevitably travels through transport, logistics, agriculture and ultimately food.

    Tinubu's reform solved one problem an unsustainable and distortionary subsidy regime but created a very immediate political test: Can the government convert the money saved into better infrastructure, cheaper transport, stronger social protection and ultimately lower living costs?

    Without that second half of the bargain, subsidy removal risks looking less like economic reform and more like a transfer of the government's burden onto already-stretched households.


    Sources of FG Revenue

    S/NO Type of Revenue Generated Amount
    1 Subsidy Removal Savings N15.8 Trillion
    2 Incremental Revenues N3.12 Trillion
    3 Incremental Borrowing gives approximately N11.85 Trillion
    TOTAL INCREMENTAL RESOURCES N30.77 Trillion
    EXPENDITURE N30.64 Trillion

    Friday, 28 August 2026

    (Hibiscus sabdariffa), AKA Zobo or roselle: Cultivation and Harvest

     Hibiscus zobo (Hibiscus sabdariffa), commonly called roselle, is grown primarily for its fleshy calyces, which are used to make zobo drinks. It grows well in tropical and subtropical climates, including much of West Africa.

    Suitable soil for zobo

    The best soil is:

    • Well-drained loam or sandy-loam soil — this allows good root development while preventing waterlogging.

    • Moderately fertile, with adequate organic matter.

    • Slightly acidic to neutral, ideally around pH 5.5–7.0.

    • Good moisture-holding capacity is useful, but the soil should not remain waterlogged.

    • Avoid very heavy clay soils or soils with prolonged standing water because they can cause poor root growth and disease.

    Before planting, incorporating well-decomposed manure or compost can improve soil structure and fertility.

    How zobo is cultivated

    1. Land preparation
    Clear weeds and prepare the soil to a fine tilth. Where drainage is poor, plant on raised beds or ridges.

    2. Seed selection
    Use mature, healthy seeds from a good-performing roselle variety. Varieties differ in calyx colour, size, maturity period, and suitability for local conditions.

    3. Planting
    Zobo is normally established directly from seed.

    A practical spacing is approximately 60–75 cm between plants and 75–100 cm between rows, although the optimum spacing depends on the variety and whether the crop is being grown mainly for leaves or calyces.

    Plant about 2–3 seeds per hole, shallowly (roughly 1–2 cm deep), and thin to the strongest plant after establishment.

    4. Water management
    Keep the soil adequately moist during germination and early growth. Once established, roselle is relatively tolerant of short periods of dry conditions, but water stress during important growth stages can reduce yield. Avoid excessive irrigation.

    5. Weed control
    Weed regularly, particularly during the first 6–8 weeks, when young plants compete poorly with weeds. Mulching can help conserve moisture and suppress weeds.

    6. Fertilization
    A soil test is the best basis for fertilizer application. Compost or well-rotted animal manure can provide organic matter and nutrients. Excessive nitrogen should be avoided because it can encourage vegetative growth at the expense of desirable calyx production.

    7. Pest and disease management
    Common problems can include aphids, caterpillars, beetles and other leaf-feeding insects, while fungal diseases can become problematic under excessive moisture and poor air circulation.

    Use integrated pest management: maintain field sanitation, remove severely affected material, avoid excessive watering, encourage beneficial insects, and use an appropriate registered pesticide only when necessary.

    8. Harvesting
    For zobo production, the calyces are the principal harvest. After flowering, the calyces enlarge and become fleshy. They are harvested when they have developed good size and colour but before they become excessively mature and tough.

    The calyces are separated from the seed capsules and can be used fresh or dried for storage and processing.

    Approximate production cycle

    Depending on the variety and environmental conditions:

    Seed → germination (about 1–2 weeks) → vegetative growth → flowering → calyx development → harvest, commonly around 3–5 months after planting.

    Day length has a particularly important effect on flowering in roselle, so planting date and local climate can significantly affect the crop cycle.

    Important considerations for West African farmers

    For commercial zobo production, I would recommend paying particular attention to:

    1. Planting at the beginning of the suitable rainy period, while avoiding periods when the field is likely to become waterlogged.

    2. Conducting a soil test before applying fertilizer.

    3. Selecting a variety adapted to your particular region and intended market.

    4. Maintaining adequate spacing and weed control.

    5. Harvesting calyces at the appropriate maturity and drying them properly to prevent mould and deterioration.


    Stanbic IBTC ETF 40 Delivers 829% Cumulative Return: What Investors Need to Know

     

    Stanbic IBTC ETF 40 Fund has delivered an impressive 829% cumulative return, translating to an average annual return of 32.5%, highlighting the growing potential of exchange-traded funds as a route to Nigeria’s equity market.

    The performance puts the fund firmly on the radar of investors looking for diversified exposure to Nigerian equities without having to select individual stocks.

    What does an 829% return mean?

    An 829% cumulative return means that an investment of ₦1 million, if it had tracked the reported return over the relevant period and assuming the return figure is presented on a total-return basis, would have grown to approximately ₦9.29 million.

    That is a gain of about ₦8.29 million on the original ₦1 million.

    The reported 32.5% average annual return is also significant because it demonstrates the power of compounding over time. However, investors should not interpret 32.5% as a guaranteed return every year. ETF prices can rise and fall, and past performance does not guarantee future results.

    Why the ETF 40 matters

    An ETF, or Exchange-Traded Fund, is an investment fund whose units can be bought and sold on a stock exchange, much like ordinary shares.

    The Stanbic IBTC ETF 40 provides investors with exposure to a basket of Nigerian equities rather than requiring them to buy each constituent individually.

    This offers several potential advantages:

    • Diversification: One investment gives exposure to multiple companies.

    • Convenience: Investors don't have to construct an entire portfolio themselves.

    • Liquidity: Units can be traded during market hours on the exchange, subject to market liquidity.

    • Market exposure: Investors can participate in the performance of a broad group of Nigerian equities.

    • Potential for long-term wealth creation: Returns can compound when investments are held for the long term.

    How can you trade Stanbic IBTC ETF 40?

    For an investor who wants to buy or sell the ETF, the process is broadly similar to trading a listed Nigerian stock.

    1. Open a CSCS account

    You need a Central Securities Clearing System (CSCS) account through a registered stockbroker. The CSCS account is where your securities are held electronically.

    2. Open an account with a registered stockbroker

    Choose a SEC-registered Nigerian stockbroker that provides access to the Nigerian Exchange (NGX).

    The broker will provide the platform through which you can place your ETF buy or sell orders.

    3. Fund your brokerage account

    Transfer money into your brokerage account. The amount you need depends on the ETF's prevailing market price, the number of units you want to purchase and applicable transaction charges.

    4. Place your order

    Search for the Stanbic IBTC ETF 40 on your broker's trading platform and enter:

    • Number of units

    • Your preferred buying price, if using a limit order

    • Buy or sell instruction

    Your broker sends the order to the market for execution.

    5. Monitor your investment

    Once your order is executed, the units become part of your investment portfolio. You can monitor the market price and decide whether to hold, buy additional units or sell.

    ETF 40 is not the same as a savings account

    The reported 829% performance may be attractive, but investors should understand that an ETF is a market investment, not a fixed-income deposit.

    Its market value can decline, sometimes sharply.

    For example, someone buying when the market is expensive could experience a temporary loss if equity prices subsequently fall. The long-term investment case therefore needs to be separated from short-term price movements.

    The bigger investment story

    The significance of Stanbic IBTC ETF 40's reported performance goes beyond the headline 829%.

    Nigeria's capital market has traditionally been dominated by investors selecting individual shares. ETFs provide another route: buying a diversified basket through one listed security.

    For new investors, this can make equity-market participation easier to understand.

    But the important question is not simply "How much has the ETF made?"

    It is also:

    Can the underlying Nigerian companies continue producing earnings, dividends and capital appreciation that justify higher valuations in the years ahead?

    That is where investors need to look beyond historical performance.

    Bottom line

    The 829% cumulative return and 32.5% average annual return reported for Stanbic IBTC ETF 40 is a powerful illustration of what long-term exposure to equities can potentially achieve.

    For an investor considering the fund, however, the appropriate approach is to understand the ETF, examine its current price and underlying holdings, consider fees and liquidity, and invest according to personal risk tolerance and time horizon.

    In simple terms: you don't need to buy 40 different stocks to gain diversified exposure. An ETF can package that exposure into one trade.

    Investment returns are not guaranteed. Investors should verify the latest ETF price, performance figures, fees, holdings and trading information from Stanbic IBTC Asset Management, the NGX and their registered stockbroker before investing.

    Need to open CSCS Account? Need to start trading? All logistic handled send interested WhatsApp to this number +2348038545323