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AfDB’s Chief Adesina Warns Of Tariff ‘Shock Wave’
An onslaught of tariffs by the United States will send “shock waves” through African economies, the president of the African Development Bank said on Friday, warning of reduced trade and higher debt-servicing costs.
The comments come as US President Donald Trump has upended global markets by pushing — and then retracting — a slew of tariffs in recent days.
A baseline 10-percent levy remains in place for all countries, along with higher tariffs on Chinese imports to the United States — scrambling decades of global trade policy.
Those new levies — with 47 African countries at risk of even higher tariffs — will cause local currencies to weaken on the back of reduced foreign exchange earnings, AfDB President Akinwumi Adesina said in the nation’s capital, Abuja.
“Inflation will increase as costs of imported goods rise and currencies devalue against the US dollar,” Adesina said in a speech at the National Open University of Nigeria, according to prepared remarks which also touched on migration and decreased foreign aid.
“The cost of servicing debt as a share of government revenue will rise, as expected revenues decline.”
As some observers watch for countries around the world to turn to other trade partners — including China — Adesina warned that Europe and Asia “will buy less goods from Africa” amid the global shocks.
The Trump administration’s current trade posturing also makes it nearly certain that the US African Growth and Opportunity Act, a major duty-free agreement for 35 African countries that expires this year, will not be renewed, Adesina said.
“Chances of renewal and extension are now extremely low,” he said, predicting serious blows for Lesotho and Madagascar, which are major clothing, diamond and vanilla exporters.
Old models ‘no longer work’
Adesina is set to step down as head of the bank — a major lender to economic development projects on the continent — at the end of his second term later this year.
But much of his speech focused on the future of the continent, from critical mineral deals to reduced foreign aid to emigration.
He said the global financial system has failed to deliver for Africa “especially on matters of debt, climate change and access to greater financing”, while “restrictive immigration policies” in rich countries pose challenges for labour mobility.
The dismantling of USAID, America’s main foreign development arm, along with cuts by European countries, “means that the old development models that Africa has always relied on will no longer work.”
At the same time, however, Adesina argued that “aid is not the way to develop”, and that “Africa cannot blame others for not taking in its rising migrant population”.
“It must create the right environment for its own youth to thrive, right here on the continent,” he said.
Whether and how that happens though, is contingent on both African and foreign powers — including the United States as it pursues a deal on critical minerals with the Democratic Republic of Congo.
Though Adesina didn’t reference the deal directly, he warned that “Africa must also carefully negotiate its engagement in the global geopolitical rush for critical minerals and rare earth elements”.
Much of Africa’s vast mineral wealth is mined locally but processed abroad, leaving many countries at the bottom of the supply chain.
The continent “must move away from exporting raw minerals and move into processing and value addition to benefit from the high returns at the top of global value chains”, Adesina said.
The Nigerian Exchange reversed previous gains on Wednesday, April 16, as investors lost N445bn following a widespread decline in banking stocks, especially Guaranty Trust Holding Company and Zenith Bank.
At the close of trading, the All-Share Index dropped by 708.14 points, representing a 0.68 per cent decline, to settle at 103,851.88 points. This downward movement also dragged the overall market capitalisation from N65.7 tn to N65.3 tn, reflecting a N445 bn loss in value.
The decline in the market was primarily driven by sharp sell-offs in top-tier banks. Guaranty Trust Holding Company recorded the worst performance on the losers’ chart with an 11.94 per cent drop to close at N59.00 per share. Zenith Bank followed closely with an 11.65 per cent dip to close at N44.00 per share. Other laggards included Industrial and Medical Gases, which fell by 10 per cent, Guinea Insurance, which dropped by 9.52 per cent, and UPDC Real Estate Investment Trust, which declined by 8.2 per cent.
Despite the bearish outing, 124 listed equities participated in the day’s trading, out of which 24 recorded gains while 21 posted losses. Abbey Mortgage Bank led the gainers’ chart with a 9.99 per cent increase to close at N8.15 per share. It was trailed by Sovereign Trust Insurance with a gain of 7.69 per cent, the Nigerian Exchange Group rose by 7.3 per cent, and Deap Capital Management and Trust appreciated by 6.67 per cent.
Market activity also showed mixed sentiments. A total of 351.66m shares valued at N13.71bn were exchanged in 12,141 deals. Compared to the previous trading day, this represented a five per cent decline in trading volume, a 26 per cent increase in turnover, and an eight per cent drop in the number of deals.
Access Holdings led in terms of volume with 68.2m shares traded, followed by GTCO with 36.8m shares, FCMB Group with 28.8m shares, and United Bank for Africa with 26.4m shares.
On the performance of key indices, the NGX Top 30 Index fell by 0.72 per cent. The NGX Oil and Gas Index slipped by 0.05 per cent, while the NGX Industrial Index was marginally flat. However, some indices posted gains: the NGX Insurance Index advanced by 0.8 per cent, the NGX Consumer Goods Index rose by 0.34 per cent, and the NGX Pension Index edged up by 0.09 per cent.
In terms of broader market performance, the NGX has recorded a one-week loss of 0.32 per cent and a four-week loss of 1.84 per cent, although it retains a modest year-to-date gain of 0.9 per cent.
On Tuesday, the Nigerian equities market rebounded, with investors recording a gain of N19bn, pushing the market capitalisation of the Nigerian Exchange to N65.7tn at the close of trading.
Emomotimi Agama, the director-general (DG) of the Security and Exchange Commission (SEC), says the CBEX digital trading platform is not registered with the agency.
Agama spoke on Arise Xchange on Wednesday, responding to questions on the loss of investors’ funds after the recent collapse of the CBEX trading platform.
The CBEX had reportedly promised investors a 100 percent returns, before it suddenly crashed — leading to the looting of its Ibadan office on Monday.
The director-general said the commission has repeatedly warned that any investment scheme that is not registered is illegal.
He said investors must always check if schemes are registered with the SEC, noting that the ISA 2025 defines ponzi schemes and prescribes sanctions for those involved.
“For us at the SEC, our primary responsibility is investor protection, and investor protection stems out of registration and regulation,” he said.
“When a scheme is not registered with the SEC, it becomes illegal; and is important that whoever is interested in investing in such scheme must ask the question, Are you registered with the SEC?
“If that is not the case, then it is automatically stated and known that such is an illegal activity and will not be condoned even by the SEC.”
‘SEC HAS NOT RECEIVED OFFICIAL COMPLAINTS REGARDING CBEX’
Agama said the commission was unaware of CBEX’s illegal operation, stressing that no official complaints were made regarding the scheme.
“Often times with schemes like this, most people will always try to keep it away from the regulator and even keep it away from their friends, except a few group of persons whom they are interested in,” he said.
“So for us, at the SEC as we speak today, at this hour, we have not received any complaints from anyone regarding CBEX.
“If we had received any formal complaint regarding CBEX, the team at the SEC will have actually swung into action trying to get who is involved.
“However, we sympathise very much with the people, the victims, because they are Nigerians, and of course, at SEC, we will commence investigation as to where these people are, and make sure we hunt them down, because the law actually has given us the power to take them down, find them, sanction them by fining, and also sending them to the prisons for 10 years, that is the provision of the law.”
‘WE’ll CONTINUE TO EDUCATE NIGERIANS’
The director-general said the SEC has persistently cautioned Nigerians against investing in schemes that seem too good to be true.
He noted that the commission uses paid advertisements, videos uploaded on the SEC website, interviews, and newspaper articles to enlighten the public.
“Ponzi scheme didn’t start today, it is a global malaise. It started in the 20th century by a man called Charles Ponzi, who clearly, at that point in time, promised that he was going to give every investor 50 percent in returns, and from then on, it became a practice by so many people to defraud people from their hard-earned resources,” Agama said.
“It is very clear that the choices made by people must be dictated and regulated by the law of the land.
“The SEC will continuously educate people. We have in the process of doing that, agreed to various forms of interview.
“We’ve also launched a podcast at the SEC providing more information towards our long term goal of launching a capital market radio, we will continue, because we know that it is not enough.
“We will continue to educate Nigerians onto the last milestone to make people understand and know the value of proper investment.”
The director-general urged Nigerians who want to invest to make sure they verify the registration status of investment schemes from the SEC.
Agama reiterated that the commission has taken several actions against Ponzi schemes in the country, resulting in the imprisonment of culprits.
He added that the SEC is collaborating with the Economic and Financial Crimes Commission (EFCC) to rid the country of “unscrupulous individuals who have malicious intentions towards citizens”.
Nigerians are voicing outrage over unexpected deductions from their bank accounts by NIRSAL Microfinance Bank, which they claim were linked to COVID-19 grants disbursed during the administration of former President Muhammadu Buhari.
Beneficiaries, particularly in Kwara State, allege they were misled into providing their Bank Verification Numbers (BVN) and account details under the impression they were receiving grants, not loans.
The controversy has sparked accusations of mismanagement and calls for intervention from President Bola Ahmed Tinubu, as well as oversight bodies like the National Human Rights Commission and the Consumer Protection Council.
According to the Global Information Team, a monitoring group, many beneficiaries were unaware that the funds were loans requiring repayment.
Anabel Crown, the group’s head of investigation, described NIRSAL’s deduction practices as “unacceptable,” arguing that the bank should hold accountable politicians who facilitated the disbursements rather than penalizing recipients.
In Kwara State, some beneficiaries claim aides of former Senate President Bukola Saraki collected their BVN and account details, presenting the funds as grants to support indigenes during the pandemic.
At NIRSAL’s Area 10 Post Office branch in Abuja, frustrated beneficiaries gathered to protest, but their complaints have reportedly gone unaddressed.
“I was told it was a grant to help us survive COVID-19,” said Aisha Muhammed, a trader from Kwara. “Now they’re taking money from my account without warning. How is this fair?”
The Central Bank of Nigeria (CBN), which oversees NIRSAL, is said to have authorized the recovery of the funds without considering how they were disbursed.
He argue this approach disregards the circumstances under which beneficiaries received the money, many of whom were not informed of repayment obligations.
The deductions have fueled speculation of political motives, with some suggesting the controversy could tarnish President Tinubu’s image ahead of the 2027 elections.
“This is a ploy to undermine the president’s reputation,” claimed Adebayo Olanrewaju, a civil society activist.
“The government must step in to protect citizens.”
The National Human Rights Commission and the Consumer Protection Council have been called upon to investigate NIRSAL’s practices, particularly the lack of prior notice before deductions.
“Withdrawing money without consent violates people’s rights,” said Funmi Adeyemi, a legal advocate.
“This must be addressed urgently.”