Experts Predict Trump's Tariff Will Have a Ripple Effect On Nigerian Startups

Sunday 13th April 2025

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Venture capital firms poured billions into emerging markets, including Africa, during the US zero-interest period to generate disproportionate returns. However, if or when the US trade tariff resumption, it may reduce non-oil export volumes, cause exchange rate volatility, and increase inflation.

Most Nigerian startups operate in industries like e-commerce, logistics, agriculture, fintech, and technology, which could force investors to take a "wait and see" stance by pulling out of African markets.

Temitope Omosuyi, a UK-based investment analyst made the following comments;

“The uncertainty would likely deter investment inflows into African startups, as potential investors assess the risks involved.”

“The impact will extend to most of their prospects, particularly in logistics and cross-border payments.”

Nigeria’s Oil Reserves Reach 37.28 Billion Barrels, Gas Reserves Hit 210.54 tcf – NUPRC

Nigeria has 37.28 billion barrels of crude oil and 210.54 trillion cubic feet (tcf) of gas reserves as of January 1, 2025, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

NUPRC's Commission Chief Executive, Engr. Gbenga Komolafe made this announcement on Friday.

According to the News Agency of Nigeria (NAN), the amount comprises 5.84 billion barrels of condensates and 31.44 billion barrels of crude oil, Komolafe pointed out.

Excerpts from the source state;

“The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Friday said that the nation’s crude oil reserves stood at 37.28 billion barrels (bb) as of Jan. 1, 2025.

“The commission also said that Nigeria’s gas reserves hit 210.54 trillion Cubic Feet (tcf).”

“Mr Gbenga Komolafe, Commission Chief Executive, NUPRC, who stated this, said that oil and condensate reserves stood at 31.44bb and 5.84bb respectively, amounting to a total of 37.28 bb.”

Wema Bank To Raise N150 Billion via Rights Issue

According to Wema Bank, the money it plans to raise by selling its current shareholders N150 billion worth of shares will put it on track to become one of the systemically important banks—a group of lenders that are frequently referred to as "too big to fail" because their failure could seriously jeopardise the financial system.

The lender announced on Thursday that the rights issue, scheduled to go live on Monday, "will consolidate the Bank's vision of becoming a Systematically Important Bank (SIB) and creating value for our esteemed shareholders."

Wema Bank has to reach the new N25 billion threshold by March next year.

Previously the CBN stated;

“By increasing the minimum capital requirements, the CBN aims to ensure banks have a robust capital base to absorb unexpected losses and capacity to contribute to the growth and development of the Nigerian economy.”

Investors Gain N377 Billion on Nigerian Stock Market Thursday

On Thursday, the Nigerian stock market recovered, gaining N377 billion on the Nigerian Exchange Ltd.

Compared to the N65.470 trillion recorded on Wednesday, the market capitalisation increased by N377 billion, or 0.58%, to close at N65.847 trillion.

Similarly, the All-Share Index (ASI) increased 601.25 points, or 0.58%, from its previous value of N104,187.00 to settle at 104,788.25.

Strong buying interest in medium—and large-capitalised stocks, including Caverton Offshore Support Group, VFD Group, Neimeth, and others, propelled the upward trend.

With 47 winners and 11 losers, the market breadth closed higher.

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Thank you for reading! Stay tuned next week to be updated with the latest major events from the Nigerian commercial sector.