On Monday, the first trading day of the week, the naira strengthened on the official foreign exchange (FX) market, rising to ₦88.35 vs the US dollar. Despite a decline in market liquidity, this is the case. According to data from the FMDQ Securities Exchange Limited, the naira appreciated 5.7% following Monday’s trading session. The dollar was quoted at N1,552.92, up from N1,641.27 on Friday at the Nigerian Autonomous Foreign Exchange Market (NAFEM). The FX market turnover, which measures the total amount of currencies moved during a given period, fell precipitously by 44.27 percent. The NAFEM window saw $343.71 million in…
Author: Ken Ibenne
The former president, Olusegun Obasanjo, has urged Nigerian authorities to use the nation’s abundant resources for national development, emphasizing that successful management is necessary to guarantee prosperity. Speaking on Sunday at the Methodist Archdiocese of Abuja’s 40th-anniversary celebration, Obasanjo emphasized that although Nigeria is endowed with a wealth of natural resources, it has had difficulty successfully managing them. The former president stressed that Nigeria’s problems are caused by poor management and decision-making, not a lack of resources. In reflecting on the sermon given by Methodist prelate Oliver Aba, Obasanjo emphasized the need for the nation’s leaders to acknowledge and appropriately…
The Nigerian Electricity Regulatory Commission (NERC) has revealed that Benin Republic and Togo owe Nigeria $5.79 million for the energy used in the second quarter (Q2) of 2024. According to the NERC’s second quarter 2024 report, out of the $15.60 million that was billed for power utilized during that time, $9.81 million was paid by international consumers between April and June 2024. The businesses in question include Odukpani-CEET in Togo, Mainstream-NIGELEC in Togo, Para-SBEE in the Benin Republic, and Transcorp-SBEE in Benin. Transcorp-SBEE in Benin remitted all of the $4.25 million that Nigeria had charged, whereas Para-SBEE in the Benin…
In partnership with Shell, TotalEnergies, and Agip, the Nigerian National Petroleum Corporation (NNPC) Limited has completed a major agreement to supply gas to Brass Fertiliser & Petrochemical Company Ltd.’s methanol-producing plant. Nearly nine years after the project’s original announcement, the gas sales and purchase agreement was signed in Abuja on Friday, marking a significant milestone for the project. The agreement was hailed as “a significant milestone in the ongoing efforts to monetise Nigeria’s vast gas reserves” by Ekperikpe Ekpo, Minister of Petroleum Resources (Gas). The agreement makes it possible for Brass Fertiliser & Petrochemical Company to start building the $3.3…
On October 11, 2024, the naira lost value in relation to the US dollar, ending at N1,641.27 in the official Investor and Exporter (I&E) market, even if the price of crude oil futures remained higher than $79 per barrel. Nigeria’s foreign exchange situation has changed, as seen by the naira’s 1.15% depreciation from the previous day’s rate of N1,622.57. In the meantime, market turnover in the I&E window surged to $616.73 million, a 323% increase over the $145.56 million exchanged the day before. Key Data Points Closing Exchange Rate: On October 11, 2024, the naira closed at N1,641.27 per dollar,…
According to the World Bank’s recently issued Food Security Update Report, Nigeria is witnessing an increasingly severe food insecurity crisis, with over one million more people experiencing extreme food insecurity in 2024 than the previous year. The research emphasizes that there has been a notable increase in the number of individuals experiencing severe food shortages in nations including Yemen, Ethiopia, and Nigeria. On the other hand, certain nations saw advancements. Even while these countries were still in serious food crisis circumstances, countries including Afghanistan, Guatemala, and Kenya showed reductions in food insecurity, with over a million fewer people experiencing acute…
To improve the taxpayer experience, the Federal Inland Revenue Service (FIRS) released a new Unstructured Supplementary Service Data (USSD) code on Wednesday: *829#. The code was launched at the Revenue House in Abuja by FIRS Chairman Zacch Adedeji as part of this year’s Customer Service Week, which had the subject “Above and Beyond.” Nigeria is becoming the sixth country in Africa to implement a USSD code to streamline tax payment procedures. The code allows taxpayers in Nigeria to access real-time services on any mobile network, according to Dare Adekanmbi, Special Adviser on Media to the FIRS Chairman. These services include…
Net foreign exchange inflows increased from $16.44 billion in 2023 to $27.6 billion in the first half of 2024, a 67.8% increase. This occurred due to a 170% YoY rise in net foreign exchange inflows through the Central Bank of Nigeria and a 34.6% YoY increase in net inflows through autonomous sources. According to data from the CBN’s quarterly Economic Statistics, the amount of foreign exchange input into the economy increased year over year by 41.6%, from $33.7 billion in H1’23 to $47.73 billion in H1’24. Additionally, gross inflows from autonomous sources increased from $21.16 billion in H1’23 to $31.15…
On October 9, 2024, the naira fell vs the US dollar, closing at N1,625.13 during the official Investor and Exporter (I&E) window. This was accompanied by a modest decline in crude oil futures, which came in at roughly $76 per barrel. This latest fluctuation, with the naira falling by 4.06% from the previous trading day’s closing rate of N1,561, indicates a change in Nigeria’s foreign exchange dynamics. In the I&E window, market turnover also experienced a large decline, dropping from $253.68 million the day before to $170.60 million, a 49% decrease. Key Points On October 9, 2024, the naira closed…
Data from the Nigeria Inter-Bank Settlement System shows that between January and July 2024, the value of point-of-sale transactions in Nigeria was N6.23 trillion. This represents a 7.4% decrease from the N6.79 trillion reported during the same period in 2023, which is indicative of shifting consumer spending and behavior. According to a breakdown of the NIBSS statistics, PoS transactions rose from N807.16 billion in the equivalent month of 2023 to N850.09 billion in January, a 5.3% rise. But from N883.4 billion in February 2023 to N805.05 billion in February 2023, that is an 8.9 percent reduction. Transactions in March fell…
According to records accessible up to 2013, Nigeria’s foreign direct investment (FDI) during the second quarter of 2024 fell to $29.83 million, the lowest figure ever recorded. This is based on information from the National Bureau of Statistics’ most recent capital importation report (NBS). The FDI amount is a significant 65.33% decrease from the $86.03 million reported in the second quarter of 2023. Additionally, it demonstrates a noteworthy 74.97% decrease from the $119.18 million reported in Q1 2024, the previous quarter. Capital other than equity is included in FDI into Nigeria. Of the FDI in Q2 2024, equity investments accounted…
The World Bank projects that, despite a brief lift from a slew of recent stimulus measures, China’s economic growth rate will continue to fall in 2025. In an economic update on Tuesday, the international lender predicted that China’s growth rate will fall to 4.3% in 2024 from a projected 4.8% in 2024. The 2024 estimate is higher by 0.3% than the bank’s April estimate. It comes after Beijing announced stimulus plans last week, which increased investor confidence and sparked a brief surge in the stock market. Nevertheless, the World Bank’s growth estimate for 2025 remained constant from earlier estimates in…
The Nigerian Communications Commission (NCC) has warned it would fine Elon Musk’s internet company, Starlink, for increasing its subscription price in Nigeria without clearance from the regulator. This came after a report by THE NEWS CHRONICLES on Tuesday, in which stakeholders accused the telecom regulator of using a double standard by permitting the price increase but prohibiting local cellular companies from raising their rates. According to Dr. Reuben Muoka, the Commission’s Director of Public Affairs, the NCC did not sanction Starlink’s pricing increase in response to this publication’s question on the subject. He claimed that Starlink had violated the license…
According to a Pison Housing Company report on “The State of Real Estate Market in Nigeria,” over 80 percent of Nigeria’s 200 million people live in rented housing, making it one of the most active rental markets in the world. These renters also spend more than 50 percent of their income on house rent. However, professional estate agents claim that the unfavourable macroeconomic environment has produced an imbalance in the market, which is not helping the situation. In the major cities of Lagos, Abuja, and Port Harcourt, the most affected areas are office buildings, malls, grocery stores, low-rise, high-rise, and…
Yemi Cardoso, the governor of the Central Bank of Nigeria (CBN), has admitted that the interest rate increase to 27.25% is “painful” for borrowers, but he has also emphasized that the move is required to effectively control inflation and lessen the amount of surplus money in circulation. Cardoso said this at a speech on the subject of “Leadership in Challenging Times: Restoring Credibility, Building Trust, and Containing Inflation” to the Harvard Club of Nigeria in Lagos over the weekend. According to the head of the CBN, the central bank is aware that being a leader means making tough choices that…
The Human Papillomavirus (HPV) vaccine Cecolin® has been prequalified by the World Health Organisation (WHO) for use in a single dose regimen to help prevent cervical cancer. The WHO declared on Friday that Cecolin® satisfies the requirements outlined in its 2022 recommendations for the off-label, alternative use of HPV vaccinations in single-dose schedules. The World Health Organisation states that this approval will help ensure a more stable supply of HPV vaccines, which could lead to more girls receiving the shot and being protected from cervical cancer. The WHO said, “This significant milestone will help improve the sustainable supply of HPV…
The All-Share Index (ASI) gained 0.47%, or 456.12 points, to close at 97,520.54 on October 4, 2024, marking a good close for the Nigerian stock market. A 20% rise in market activity—with the trading volume reaching 320 million shares—supported this uptick. Friday saw strong SEPLAT advances, with UBA leading in trade volume. With its rise, SEPLAT emerged as the day’s best performer, with ABCTRANS coming in second with a 9.92% gain. In the meantime, the total number of shares moved increased to 320 million, a notable increase over the 268 million shares exchanged in the previous session. With a 10.00%…
The Central Bank of Nigeria (CBN) declared that from September 6 to September 30, it sold $543.5 million to dealer banks with authorization. In a statement, Omolara Duke, the CBN’s Director of the Financial Markets Department, said that the sales took place at the Nigeria Foreign Exchange Market (NFEM) over the course of eleven dealing days using a two-way quote. She clarified that the goal of the spot sales was to reduce market volatility caused by the strong demand for imports of commodities and the cyclical need for foreign exchange. The statement stated that by providing the range of rates…
The depreciation of the Naira in the parallel market, according to Bureau De Change (BDC) operators in Nigeria, has been ascribed to a shortage of foreign exchange in the industry as main sources have been substantially curtailed. Aminu Gwadabe, the chairman of the Association of Bureau De Change Operators of Nigeria (ABCON), informed Nairametrics that the CBN’s recent policies have significantly negatively influenced the forex market’s supply of currency for that particular segment. He claims that members of the Association now depend on sporadic involvement from the Central Bank of Nigeria (CBN) and no longer receive as much foreign exchange…
A government official aims to attract up to $10 billion in new investments in deep-water gas exploration in Nigeria based on tax advantages and other measures outlined in a new industrial policy framework. President Bola Tinubu stated earlier this week that the Federal Executive Council has accepted the framework and will now send it to the National Assembly for passage into law. According to a statement released on Thursday by Tinubu’s special adviser, Olu Verheijen, the new policy framework aims to accelerate advancements in Nigeria’s offshore gas sector, where an estimated 67% of the resource remains unexplored. Tax credits are…
The number of approved digital lenders in the country has increased by 79.77 percent since April 2023, demonstrating Nigerians’ growing credit appetite. According to the Central Bank of Nigeria (CBN), this has happened at the same time as personal loans have increased by 329.28 percent annually to N7.52 trillion in March 2024. The number of digital lenders increased by 79.77 percent, from 173 in April 2023 to 311 in September 2024, according to Federal Competition and Consumer Protection Commission (FCCPC) data. The “Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022,” which regulates the digital lending industry and ensures…
The Federal High Court in Abuja has been informed of the views taken by the Federal Competition and Consumer Protection Commission (FCCPC) and the National Broadcasting Commission (NBC) regarding Pay-Per-View subscription requests against Multichoice Nigeria products, GOtv and DStv. In lawsuit number FHC/ABJ/CS/563/2024, Multichoice Nigeria Limited requested that the court reject a plaintiff’s application forcing it to meter its DStv and GOtv decoders to read subscribers’ subscriptions just once, either during viewing or per view. Maduabuchi O. Idam Esq. brought the FCCPC and NBC into a new legal battle by requesting an order directing the Attorney General of the Federation,…
Starlink, Elon Musk’s satellite internet service provider, has raised prices for its Nigerian residential and personal customers. According to THE WHISTLER, the corporation increased the subscription price by an astounding 97.36%. Just one week has passed since Starlink debuted a more reasonably priced internet kit in Kenya, priced at $208.38, combined with a $30.87 (N49,422) monthly household subscription plan. Now, there has been a sharp increase. Customers in Nigeria received an email from Starlink on October 1, 2024, informing them that a price modification was necessary due to “excessive levels of inflation.” For current subscribers, the new monthly subscription costs…
In an effort to promote innovation across the economy, the Nigerian federal government has revealed that it is in talks with the Commonwealth of Nations to accept Nigerians into its AI Academy. On Monday, September 30, 2024, Chief Uche Nnaji, Nigeria’s Minister of Innovation, Science, and Technology, made this announcement via his X page. The discussions stemmed from high-level conversations held outside of the just finished 79th session of the United Nations General Assembly (UNGA) with Patricia Scotland, the Secretary-General of the Commonwealth of Nations. Using AI as a Tool to Power Nigeria’s Economy Nnaji disclosed that they talked about…
The Federal Government has inked a N122 billion project equity participation agreement with six gas infrastructure businesses targeted at revamping the midstream gas value chain across the country. During the signing of the Promoters Agreement and the Midstream Downstream Gas Infrastructure Fund (MDGIF) in Abuja on Monday, the Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, revealed this. The News Agency of Nigeria (NAN) reports that the MDGIF signed the deal with proponents of gas infrastructure in order to improve Nigeria’s gas infrastructure. Ekpo stressed that the fund was dedicated to helping investors make sure that gas is…
The current economic issues facing Nigeria are a result of a budgetary imbalance that President Bola Tinubu has said must be corrected. This was said by the President in his nationwide broadcast on Tuesday, October 1, Independence Day. “The economy is undergoing the necessary reforms and retooling to serve us better and more sustainably. If we do not correct the fiscal misalignments that led to the current economic downturn, our country will face an uncertain future and the peril of unimaginable consequences,” the president declared. “Thanks to the reforms, our country attracted foreign direct investments worth more than $30 billion…
The World Bank has authorized three new projects worth $1.57 billion for Nigeria. In a statement released on Monday, World Bank Nigeria stated that the additional funding will help the nation address healthcare and education governance issues, enhance primary healthcare services, and strengthen irrigation and dam safety to increase resilience to climate change. The September 26, 2024, clearance demonstrates the World Bank’s dedication to enhancing Nigeria’s human capital and fostering resilience against climate-related hazards. This finance package, which consists of a $70 million grant and a $1.5 billion loan, is a part of larger initiatives to combat poverty and increase…
According to TNC’s research, ExxonMobil’s intention to invest $10 billion in deep-water oil projects in the largest oil-producing nation in Africa is anticipated to unleash at least 180,000 barrels per day (bpd). One of the foreign oil firms (IOCs) that left Nigeria’s onshore environment to investigate deep-water operations in the oil-rich Niger Delta is ExxonMobil. Executives from ExxonMobil have made vague references to the advancements being made on some deep-water projects in Nigeria during recent public appearances. These projects include the oil-rich Niger Delta’s OML 133 (Erha FPSO), OML 138 (Usan FPSO), OML 139, and OML 154 (Owowo find). The…
Operators in the Nigerian real estate market warned that the Central Bank of Nigeria’s (CBN) recent increase in interest rates to 27.75 percent may result in higher building and maintenance costs nationwide. They pointed out that banks might be excluding developers from the credit market by lending at rates as high as over 40%. Due to the circumstances, there will be less housing available, which will compel landlords to raise rent and rates. “Real estate developers are investors. Any change in the price of building materials or the cost of finances will drive businesses to raise their rates or rentals…
Instant transfers drive Nigeria’s N572 trillion cashless boom, although point of sale (POS) transactions are falling. The Nigeria Interbank Settlement System (NIBSS) has released new data showing that in the first seven months of 2024, the total cashless transactions increased by 84.37 percent to N572.63 trillion. Cashless payments increased from N395.38 trillion in 2022 to N611.06 trillion by 2023. According to experts, in 2024, these figures will rise to previously unheard-of proportions. The NIBSS monitors cashless transactions through rapid payments and point-of-sale channels. Over the period, instant payments increased by 86.44 percent to N566.39 trillion. PoS transactions, on the other…
