On Friday, July 12, 2024, the naira closed at N1,563.80/$1, marking a new low for the month of July as it rebounded from the day’s small appreciation. The currency rate between the naira and the dollar decreased by 0.59% from N1,554.65/$1 on Thursday, as reported by the FMDQ. The Central Bank of Nigeria (CBN) sold a dollar valued at $122.67 million to 46 authorised dealers over the course of two days, which led to the depreciation. The local currency crept closer to the N1,600 barrier on Friday, trading between a low of N1,496.46/$1 and a high of N1,586/$1. A cash…
Author: Ken Ibenne
The National Bureau of Statistics (NBS) reported that in 2023, Nigerians spent over ₦700 billion in cash bribes to public officials. According to the bureau, there was a rise in the average cash bribe paid in 2023 from ₦5,754 in 2019 to ₦8,284. In terms of what could be purchased with the money, the average bribe size in 2023 was actually 29% smaller than in 2019 after accounting for inflation. Roughly ₦721 billion, or US$1.26 billion, is projected to be paid in cash bribes overall in 2023; this amounts to 0.35 percent of Nigeria’s GDP (gross domestic product). Over 95%…
As per the News Agency of Nigeria (NAN) reports, the Senate on Thursday rejected a bill that aimed to modify the Foreign Exchange Act of 2004 by incorporating provisions for the regulation, oversight, and tracking of transactions in the Currency Market. Tuesday, February 20 was the first reading of the bill, which was sponsored by Sani Musa (APC-Niger), the chairman of the Senate Committee on Finance. It was titled “The Foreign Exchange (Control and Monitoring) Bill, 2024 (SB. 353).” The Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, Cap. F34, Laws of the Federation of Nigeria, 2004 is to be repealed,…
In an effort to increase food security in Nigeria, the Federal Executive Council (FEC) has approved the purchase of 1,200 tractor trailers, 4,000 disc ploughs, and 2,000 tractors, among other pieces of equipment, through the National Agricultural Mechanisation Programme (NAMP). This is stated in a statement that President Bola Tinubu’s Special Advisor on Information and Strategy posted on his X Twitter on Wednesday, summarising the conclusions of the FEC meeting that took place in Abuja. According to Onanuga, the DMCC company, which also intends to set up assembly plans for some of these equipment in the nation, will supply the…
The naira broke past the 2,000 level on Thursday, beginning the session at the lower end of its range versus the British pound sterling. In the meantime, data showed that the UK economy grew more quickly than expected in May, decreasing the possibility of an August rate decrease. This led to the pound reaching a four-month high versus the US dollar. The UK economy increased by 0.4% in May, according to flash numbers provided by the Office for National numbers on Thursday. The British pound’s value versus the US dollar shot up to a four-month high after the announcement. In…
A new law that would increase the percentage of gold from 4% to 30% in the nation’s foreign reserve assets is being considered by the Nigerian Senate. By making this change, the reserves are intended to become less dependent on the US currency and more dependent on a more sustainable product. A draft measure that is currently in the Senate would automatically name the Central Bank as the buyer of all gold generated in the nation, according to a report by Bloomberg Africa. As of the end of November, Nigeria’s reserves were valued at $34.8 billion, of which only 4%…
The top 10 stockbroking companies in the Nigerian stock market made a staggering N19.209 billion in the first half of 2024 thanks to higher brokerage fees brought in by more volume and value of trades on the NGX. Compared to the same period in 2023, when the top 10 brokers received N10.789 billion in commissions, this indicates a considerable increase. Increased purchasing activity resulted from investor confidence remaining high despite worries about growing inflation and interest rate hikes. This was made possible by the exchange of 56.672 billion shares during the review period, for a total value of N1.423 trillion.…
Premium Motor Spirit (PMS), often known as petrol, has risen to an astounding N978 a litre, according to The News Chronicles’ research, yet Nigerians are still struggling with a shortage of fuel. The landing cost of petrol, which includes the product’s international pricing, transportation, insurance, and other expenses, climbed to N978/litre from N720/litre in October 2023 at the black-market rate of N1,500 per dollar, according to research. “The rising landing cost of petrol is the outcome of the rising foreign exchange crisis. There are market interventions through subsidies because most Nigerians cannot afford the market price for petrol,” claimed a…
In May 2024, the total quantity of money outside of Nigeria’s banking system rose to an all-time high of N3.71 trillion. This is based on information from the Central Bank of Nigeria’s (CBN) credit and monetary statistics. The new high indicates either a rise in the inclination for cash transactions or a declining trust in the financial system. What does the data indicate? In May 2024, the amount of cash outside banks increased by N104.89 billion over the previous month, representing a 3% month-on-month growth. With data climbing from N3.28 trillion in January 2024 to N3.41 trillion in February and…
Nigeria’s active Internet Service Providers (ISPs) fell to 242 in July from 252 in May of this year, as operators whose licenses expired failed to renew them. The decrease in the number of ISPs coincided with the July 1 licensing of two new companies, Sulfman Consulting Ltd. and NGCOM Lastmile Solution Ltd., according to the Nigerian Communication (NCC) updated database of ISPs. This shows that in June of this year, twelve ISPs renounced their licenses. The N500,000 five-year license is renewable and has a cost. The NCC had lately bemoaned the fact that a large number of ISPs were failing…
Financial fraud losses at Nigerian banks decreased significantly in the first quarter of this year, with losses falling by 77.62% from the same period last year. This was revealed in the recently released Financial Institutions Training Centre (FITC) Report on Fraud and Forgeries Report in Nigerian Banks for Q1 2024. The research states that Nigerian banks lost N468.42 million in Q1, 2023—a significant decrease from the N2.09 billion they lost in Q4. According to the study, there was a total of N2.99 billion in fraud during the quarter, which is a 56.73% decrease from the N6.91 billion that was reported…
In the first five days of July 2024, Deposit Money Banks’ borrowing from the Central Bank of Nigeria (CBN) reached an all-time high of N5.38 trillion. Compared to the N1.56 trillion that banks borrowed in the first five days of June 2024, this amounts to a 245 percent rise. According to data from the CBN, it represents a 202 percent increase year over year from the N1.78 trillion borrowed by banks in the first week of July 2023. The Standing Lending Facility (SLF) procedure is one way the central bank provides banks with liquidity. According to analysts, banks may be…
The Board of Directors’ suggested dividend of N3.009 billion for the 2023 fiscal year has been approved by NEM Insurance Plc’s shareholders. The 54th Annual General Meeting of the Company, which was held in Lagos, approved the move. The dividend is equivalent to a payout to shareholders of 60 kobo for every N1 in common shares, deducted at the appropriate percentage of withholding tax. Speaking to shareholders at the annual general meeting, Mr. Tope Smart, the group chairman, said that low foreign direct investment was caused by a number of factors, including insecurity, frequent power outages, fluctuating exchange rates, and…
Director Mojisola Adeyeye of the National Agency for Food and Drugs Administration and Control (NAFDAC) stated that the organisation has spent more than N6 billion of its own internal funds over the past eight years building the infrastructure required to enable international trade in Nigerian pharmaceuticals. Adeyeye stated at BusinessDay’s policy intervention series focused on NAFDAC as an agency for economic development and transformation that the agency, in a broad restructuring of strategies to discharge its function, has used this fund on the expansion of its laboratory capacity across the nation, putting it on track to achieve the World Health…
The Binance cryptocurrency platform has come under fire from the Central Bank of Nigeria (CBN) for allowing unauthorised deposits and withdrawals on its platform that were intended for banks and other approved financial institutions. Justice Emeka Nwite of the Federal High Court in Abuja was informed on Friday by Dr. Olubukola Akinwunmi, Head of Payment Policy and Regulation Division at the CBN, that the deposits and withdrawals made on the Binance platform were within the purview of the apex bank’s authorization for Nigerian banks. According to reports by The News Chronicles, the Nigerian government has charged Binance, its executives Tygran…
The naira/dollar rate was reported at N1,520 on both the official and parallel markets on Thursday, marking the convergence of the foreign exchange (FX) market. This unusual alignment in the foreign exchange market is significant because it reflects the Central Bank of Nigeria’s (CBN) efforts to stabilize the naira and lessen disparities across various market groups. According to analysts, this convergence could be a sign of increased efficiency and openness in the FX market, which could boost investor confidence. It is anticipated that the economy will be significantly impacted by the reduction of the exchange rate gap, with inflation rates…
Keir Starmer’s center-left Labour Party won a sizable majority in the UK general election, providing much-needed comfort to the global currency market after years of market turbulence under the Conservatives. This year, the British pound held its ground against the haven currency and kept most of its gains against the naira. Prime Minister Rishi Sunak of the Conservative Party has admitted defeat, even though there were still a lot of election results to be revealed. Labour had secured over 326 of the 650 seats in parliament, more than 410 of which were predicted by an exit poll. Regarding Sir Keir…
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has set a 24-hour deadline for new investors to sign up for the 2024 oil block licensing bid round. On Wednesday, during the 23rd Nigerian Oil and Gas Energy Conference (NOG) in Abuja, with the theme “Showcasing Opportunities, Driving Investment, Meeting Energy Demand,” Mr. Gbenga Komolafe, the Chief Executive of NUPRC, made this news. Komolafe announced in his presentation, “Defining the Outlook for Deep Water Exploration and Production in Nigeria,” that the pre-qualification document submission and registration period will end at midnight on Friday, July 5, 2024. “Registration closes at 12 midnight Friday,…
Nigeria intends to introduce a 7.5 percent value-added tax (VAT) on cryptocurrency transactions to capitalize on the country’s $56.7 billion cryptocurrency sector. The cryptocurrency network KuCoin will start collecting the 7.5 percent VAT on transaction fees on July 8, 2024. With Binance’s issue remaining very much in the public eye, the goal is to comply with Federal Inland Revenue Service (FIRS) requirements and prevent any potential disagreement with the tax agency. Nigeria is home to one of the world’s biggest peer-to-peer (P2P) cryptocurrency markets. Global blockchain platform Chainalysis reports that during July 2022 and June 2023, the amount of cryptocurrency…
The Poultry Association of Nigeria (PAN) has disclosed that more than 30% of poultry farms in the country have closed in the last six months due to industry difficulties. This was revealed by PAN’s National Publicity Secretary, Mr. Godwin Egbebe, in a Tuesday interview in Lagos with the News Agency of Nigeria (NAN). He blamed the shutdowns on the excessive operating expenses, which have significantly increased the price of eggs across the country. “The challenges faced by the poultry industry in the first half of the year have resulted in the closure of farms for about 30% of local farmers…
The money supply (M3) reached a record high of N99.23 trillion in May 2024, and given banks’ predicted capitalization, it is anticipated to soar even higher. This would raise concerns regarding the value of the naira and the ongoing pressure from inflation. The Central Bank of Nigeria (CBN) released data indicating that M3 increased from N55.69 trillion in May 2023 to N99.23 trillion in May 2024, a year-over-year increase of 78.18 percent. An economy’s inflationary pressure increases with an increase in the money supply. Economists claim that while it can spur economic growth, it might also erode price stability. The…
The World Bank has announced that it is reorganizing Nigeria’s Digital Identification for Development (ID4D) initiative to ensure that the $430 million pledged by lenders is fully disbursed. The restructuring, according to the Bank, was required because the co-financiers, the European Investment Bank (EIB) and the French Development Agency (AFD), threatened to withhold their funding if the World Bank stopped being the project’s implementer after the project’s original closure date of June 30, 2024. The project’s funding plan, approved by the International Development Association (IDA) in 2020, calls for the release of $100 million from AFD, $215 million from the…
Despite monetary tightening measures being pursued by the Central Bank of Nigeria (CBN), Nigeria’s money supply (M3) hit a record high of N99.23 trillion in May 2024. This notable expansion underscores the intricate dynamics of the nation’s financial system amidst continuous endeavors to manage inflation and stabilize the economy. The CBN reports that in April 2024, M3 climbed by 2.33 percent from N96.97 trillion. The gain increased even more significantly on a quarter-over-quarter basis, from N92.34 trillion in March 2024 to 7.46 percent. The money supply of an economy is broadly measured by M3, which includes a variety of easily…
Based on shipping data and traders, Nigeria’s recently constructed Dangote oil refinery is taking market share away from European refiners by exporting more gasoil to West Africa. As it waits for the restart of equipment required to produce cleaner fuels, the $20 billion refinery is reportedly producing a lesser grade of gasoil than expected, according to Reuters. As a result, the refinery is looking for buyers in nearby markets. According to statistics from analytics company Kpler, the refinery’s gasoil exports in May nearly doubled from April’s levels, coming in at close to 100,000 barrels per day (bpd). Except for one…
The federal government says it has disbursed a total of N27.2 billion of the N50 billion incentives set aside for nano firms under the trade grant initiative between April and June 2024. This is based on information retrieved as of June 30, 2024, from the Presidential Conditional Grant Scheme (PCGS) webpage. Throughout the programme, 545,830 people have benefited from it, according to statistics that counts the number of recipients who have received the N50,000 award for their nano companies across the 774 local government areas (LGAs). This shows that N27.2 billion has been given to these people by the federal…
Nigerian states’ responsibilities to service their external debt have increased significantly; in the first four months of 2024, they climbed by 123% when compared to the same time in 2023. The National Bureau of Statistics (NBS) Federal Account Allocation Committee (FAAC) data analysis indicates that the total amount paid for external debt service from January to April 2024 was N96.52 billion, a significant increase over the N43.31 billion paid during the same period the year prior. The amount deducted for servicing external debt in 2023 was N120.01 billion, a 54% increase from N78 billion in 2022. Interestingly, 124% more money…
Nigeria is experiencing a serious and escalating food crisis as the country enters the second half of the year. Several causes are causing a sharp decline in farm output, including rising input costs, growing levels of insecurity, and the effects of climate change. This combination of difficulties poses a threat to worsen the food crisis and cause millions of Nigerians to suffer from starvation. Growing Input Costs: A Significant Obstacle The increase in input costs is one of the main causes of the food crisis. A market survey conducted by The News Chronicles sees that the average cost of a…
Following the release of the nation’s most recent public debt statistics by the Debt Management Office last week, Nigeria’s debt-to-GDP ratio surpassed 50% for the first time ever. The DMO reports that Nigeria currently has a N121 trillion public debt portfolio, of which N65.6 trillion is domestic debt and $42.1 billion is international debt (which, when converted to Naira, becomes N56 trillion). The nominal gross domestic product (GDP) of Nigeria as of December 2023 was N229.9 trillion; in real terms, however, GDP growth was only 2.74%. This may indicate that the nation’s debt-to-GDP ratio has crossed the 50% mark for…
In Sub-Saharan Africa, Nigeria emerged as a significant beneficiary of diaspora remittances, accounting for around 35% of all inflows in 2023. This is based on a World Bank analysis of remittances received worldwide in 2023 and projections of inflows for 2024. According to the data, Nigeria saw the largest inflow of $19.5 billion in the region last year. “The expansion in the region Strong remittance growth in Uganda (15% to $1.4 billion), Rwanda (9.3% to $0.5 billion), Kenya (2.6% to $4.2 billion), and Tanzania (4% to $0.7 billion) drove remittances in 2023. “Remittances to Nigeria fell by 2.9% to $19.5…
Numerous Nigerian homes have come up with ways to deal with the predicament as the cost of fresh pepper and tomatoes continues to soar. However, nutrition experts have cautioned that people should be cautious when using contaminated substitutes and dangerous mixtures. Additionally, Nigerians have pushed governments at all levels to deal with the issues that are burdening the populace, including as rising inflation, food insecurity, and other related problems. According to information obtained by The News Chronicles, a basket of tomatoes that cost N20,000 at this time last year is now worth over N100,000. This is due to the sharp…
