Lagos pension standoff builds toward a deadline
LASPEC retirees have threatened a mega protest at Alausa if the state government fails to implement a promised pension increase by August 31, 2026, accusing officials of dragging their feet despite earlier assurances. The government maintains it has already paid over ₦168 billion in 2026, with LASPEC disbursing more than ₦4 billion to 1,862 retirees so far and preparing another ₦1 billion for roughly 700 more within a week.
Abia clears a major legacy gratuity backlog
Abia State has begun paying ₦61.8 billion in pension arrears, with several verified beneficiaries already receiving final gratuity payments. Finance Commissioner Uwaoma Ukandu confirmed the current tranche covers gratuities owed from 2001 to 2010, to be cleared in phases given the size of the liability.
Enugu approves a minimum pension increase
Governor Peter Mbah has approved raising the minimum pension to ₦32,000, tied to the new national minimum wage, alongside enrolling all local government pensioners in the state’s free health insurance scheme, set to launch August 20, 2026.
PTAD continues clearing federal arrears
Earlier this month, PTAD disbursed ₦3.82 billion in backend computation arrears to 30,356 pensioners under the Defined Benefit Scheme, part of a broader federal push to clean up legacy pension liabilities.
Structural developments to watch
PenCom’s proposed Infrastructure Fund and its ongoing review of the Pension Reform Act 2014 remain live processes shaping the industry. Separately, the combination of Premium Pension and Trustfund Pensions to form Nigeria’s third-largest Pension Fund Administrator continues to be one of the sector’s biggest structural stories this quarter.
Naira and reserves hit multi-year highs
External reserves reached an 18-year high of $53.29 billion as of August 26, up nearly 29 percent year-on-year, while the naira touched a five-month high near ₦1,338/$ on improved dollar liquidity. A report by MDU Capital (August 27) argues the naira still has a significant valuation gap and could strengthen below ₦1,000/$ within twelve months, estimating fair value around ₦984.70/$1.
CBN policy shift boosts liquidity
A CBN policy change removing restrictions on banks’ access to the Standing Lending Facility after FX or OMO participation has been credited with boosting market liquidity and helping push the naira toward its strongest levels since April.
Otedola builds First HoldCo stake
Femi Otedola continues increasing his stake in First HoldCo, parent company of First Bank, which has overtaken Zenith and GTCO to become Nigeria’s most valuable bank by market capitalisation. His position is edging toward his stated ambition of majority control.
Bank M&A as a capabilities shortcut
African banks are increasingly using acquisitions to gain digital capabilities, licences, and distribution networks rather than simply adding scale, a trend tracked across six major East African transactions since 2024.
Cautious optimism across capital markets
South Africa’s M&A activity slowed amid the Iran war and weak growth, while Nigeria’s five-week run as the world’s best-performing stock market came to an end. Meanwhile, the Africa Finance Corporation issued a $430 million digital bond, underscoring how African institutions are exploring new routes into global capital markets.
Other regional highlights
Earlier in August, Zimbabwe overtook Nigeria as Africa’s best-performing stock market on easing inflation and currency stability. Angola’s Unitel IPO, worth $329 million and more than 20 percent oversubscribed, marked the country’s biggest-ever listing. Egypt’s pound was flagged as the worst-performing major African currency over the past decade, down 82.7 percent since 2016, compared with the naira’s 77.7 percent decline over the same period.