The week ahead - Lightheaded
The second week of 2025 was a roller-coaster across Africa, marked by highs and lows in Nigeria, Ghana's rising inflation, and concerns for Mozambican parliamentarians.
The second week of the year was a mashup of emotions for important actors on the continent. Aso Rock was giddy over Chinese infrastructure diplomacy, while some Nigerian banks felt a little lighter in the pocket. The country’s air force came under fire, and its customs service did a victory lap. An important Lagos politician ended up unemployed. Data showed Ghanaian consumers weighed down at the counter, and newly minted Mozambican parliamentarians should be pretty concerned about their responsibilities.
Chart of the week
Keep an eye out for
Overnight, news emerged that Nigeria’s powerful governors have discussed reforming the country's fiscal policies and tax system and expressed support for President Tinubu’s tax reforms.
Nigeria's complex tax system, with multiple overlapping taxes, hinders business compliance, particularly for small and medium-sized enterprises, and fosters an informal sector prone to extortion. The current Value Added Tax (VAT) revenue distribution system also perpetuates regional disparities, sparking controversy over a proposed shift to a consumption-based VAT model.
Video
What we watched this week
At least 69 people were killed in Nigeria in three separate incidents, including a Nigerian Air Force airstrike that mistakenly killed 20 civilians in Zamfara State, an attack by suspected cattle herders that killed nine in Nasarawa State, and an Islamist militant attack that killed 40 farmers in Borno State.
As China's foreign minister visited Nigeria, the China Development Bank loaned Nigeria nearly $255 million for a railway project, and there were discussions about increasing economic cooperation and support.
The Central Bank of Nigeria (CBN) has fined nine banks, including Fidelity Bank, First Bank, and Zenith Bank, a total of ₦1.35 billion for failing to ensure cash availability via ATMs during the festive season.
The Nigeria Customs Service (NCS) has achieved a record-breaking revenue collection of ₦6.1 trillion ($3.65 billion) in 2024, surpassing its target by 20.2% and representing a 90.4% increase from the previous year.
Mudashiru Obasa has been impeached as Speaker of the Lagos State House of Assembly due to allegations of gross misconduct, financial impropriety, and abuse of office, including the misappropriation of ₦17 billion for constructing a gate to the assembly complex.
Ghana's consumer inflation rose to 23.8% in December 2024, driven by higher food prices, which reached 27.8%. Meanwhile, the country's energy sector debt surged to $3 billion, prompting plans for private sector involvement to improve efficiency and power distribution.
Mozambique's new parliament was sworn in under tight security amid opposition protests and a general strike led by Venancio Mondlane. Mondlane alleges electoral fraud in the October 2024 elections. Opposition parties Renamo and MDM boycotted the ceremony, leaving around 30 seats vacant.