Crunch Times News

By Otobong Gabriel,Abuja 

Dubai, UAE – Nigeria and China have taken a major step toward transforming Africa’s energy and lithium sectors as Dr. Orji Uzor Kalu, Chairman of Swiber Africa (Nigeria) Group, and Zhu Gongshan, Chairman of GCL (China) Group, officially signed a strategic cooperation agreement in Dubai. 

The partnership will focus on modernizing Nigeria’s power system and developing its lithium resources.

Nigeria has long faced severe electricity shortages that have constrained industrial growth and living standards.

Under the agreement, GCL plans to introduce advanced clean power technologies and a full-scale virtual power plant system, modeled after its successful deployment in China’s Suzhou Industrial Park. This system provides high-precision energy management, from millisecond-level rapid response to long-term forecasting, aligning directly with Nigeria’s Presidential Power Initiative (PPI).

Planned projects include:

3 GW of gas-fired power plants

4 GW of integrated wind and solar energy projects

Expansion of hydropower and coal-fired stations

Smart grid upgrades to modernize the national electricity network

On the lithium front, Nigeria has abundant resources, but development has been limited to low-value extraction and preliminary processing. GCL will support the establishment of a lithium carbonate facility in Abia State, creating a full industrial chain—from resource extraction and processing to production and global export. 

This initiative aligns with Nigeria’s 2026 policy push to strengthen local lithium processing and mirrors GCL’s successful projects in Ethiopia.

With GCL’s existing global lithium production capacity and access to premium overseas resources, the collaboration promises a stable supply for international markets while boosting Nigeria’s industrial growth and energy transition.

This landmark Nigeria-China partnership represents a major step toward sustainable power, economic development, and global competitiveness in both the energy and lithium sectors.

By Otobong Gabriel,  Abuja 

The Central Bank of Nigeria (CBN) has announced plans to roll out new regulations aimed at improving access to cash and reducing frequent automated teller machine (ATM) failures across the country.

The proposed rules, expected before the end of the second quarter of 2026, will require commercial banks to align the number of debit cards they issue with the capacity of their ATM networks. 

The initiative is part of broader efforts to strengthen Nigeria’s payment system and restore public confidence in electronic transactions, as many Nigerians continue to depend heavily on cash.

Speaking at the 2026 Committee of Heads of Bank Operations Conference, CBN Governor Yemi Cardoso, represented by his Special Adviser, Fatai Karim, said the policy is designed to address congestion, prolonged downtime, and uneven cash distribution at ATMs nationwide.

According to Karim, excessive card issuance without adequate ATM infrastructure has placed strain on the banking system, making cash withdrawals unreliable for customers.

“When access to cash fails due to extended ATM outages or poor distribution, it weakens trust in the entire payment system,” he said.

The CBN noted that it is currently consulting with key industry stakeholders and expects the new framework to take effect within the coming months.

Industry analysts say the planned regulations will improve ATM reliability, ensure better cash availability, and enhance the overall efficiency of Nigeria’s electronic payment ecosystem.

Rising Cash Outside the Banking System

The announcement comes amid growing concern over the amount of cash held outside Nigerian banks. By the end of 2025, currency outside the banking system rose to a record N5.4 trillion, highlighting Nigerians’ continued preference for physical cash.

CBN data shows that total currency in circulation reached about N5.7 trillion in December 2025, while overall money supply expanded to approximately N124.4 trillion during the same period.

Currency held by households, traders, and businesses outside regulated financial institutions exceeded the previous record of N5.125 trillion recorded in December 2024. 

Experts say this trend reflects a widening gap between formal banking channels and Nigeria’s cash-driven economy, despite ongoing efforts to promote financial inclusion, mobile banking, and digital payments.

Banks Begin VAT Deduction on Card Fees

Meanwhile, Nigerian banks have started deducting a 7.5 percent Value Added Tax (VAT) on card maintenance fees and selected electronic banking charges, effective January 19, 2026.

Under the new structure, a N50 card maintenance fee now attracts an additional N3.75 VAT charge. Some customers have reported seeing the deductions reflected as separate transactions on their accounts.

The CBN says the combination of tighter ATM regulations and broader payment reforms is aimed at improving service delivery, reducing system failures, and rebuilding trust in Nigeria’s financial infrastructure.