Expectations are strong that the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) would announce another rate hike after their meeting on Tuesday, given that the majority of MPC members adopted a hawkish position last month. The monetary policy rate was increased by 400 basis points to 22.75 percent at the first meeting held under Governor Olayemi Cardoso. MPC member Aloysius Uche Ordu voted for an increase of up to 450 basis points. Cardoso requested a 425 basis point hike. Cardoso stated in his statement, “I am persuaded that the MPC must adopt an assertive stance by…
Author: Iken
Nigeria paid N7.8 trillion towards debt service in 2023—a 121% increase over N3.52 trillion in debt service from the year before. This is based on an examination of information made available by the Debt Management Office (DMO). According to the data breakdown, the cost of servicing domestic debt was N5.23 trillion, up 104% from N2.56 trillion in the prior year, while the cost of servicing external debt increased 167% to N2.57 trillion from N962.5 billion in 2022. The devaluation of the local currency, which increased the cost of servicing foreign debt commitments as the CBN struggled with an FX liquidity…
Nigeria’s naira strengthened on Thursday at the official foreign exchange market, reaching a two-month high of N1,382.35 per dollar. This increase was facilitated by foreign exchange reforms implemented by the Central Bank of Nigeria (CBN), which have increased investor confidence and dollar supply. Based on data obtained from the FMDQ Securities Exchange, the last time the naira finished as strong as it did on Thursday was on January 29, 2024, when the dollar was quoted at N1,348.63 at the Nigerian Autonomous Foreign Exchange Market (NAFEM). The naira appreciated 7.98 percent after trade on Thursday compared to the N1,492.61 quoted at…
The $617.7 million Investment in Digital and Creative Enterprises (i-DICE) plan has received approval from the National Economic Council (NEC) to be implemented in all 36 federation states as well as the Federal Capital Territory (FCT). Vice President Kashim Shettima presided at the 140th National Executive Council meeting, where the endorsement took place, according to a statement from the Vice President’s spokesperson, Stanley Nkwocha. Vice President Shettima gave state governors instructions to designate focal individuals to oversee the program’s execution in their individual states and to nominate representatives for each geographical zone at the zonal level during the virtual 140th…
Foreign companies have contributed significantly more to Nigeria’s tax revenue; in only a single year, the amount nearly doubled. The devaluation of the naira has probably contributed to this substantial fiscal gain by raising the value of local currency in overseas transactions for non-import (foreign) Value Added Tax (VAT) and overseas Company Income Tax (CIT) payments. Nigeria’s revenue from foreign-related Value Added Tax (VAT) increased by 61% to N824.6 billion in 2023, according to the most recent data from the National Bureau of Statistics (NBS). This represents a huge increase from N510.8 billion in 2022. Of more significance is the…
With an estimated N10.3 trillion in funding, the Central Bank of Nigeria’s Intervention Funds Programme has a 75.8% repayment record. The study also claims that N418.9 billion of the total loans disbursed are still questionable and that N193 billion of the total has been declared lost. A report that breaks down the bank’s intervention money over time provides this information. The records, which bank officials last updated in September 2023, were exclusively obtained by The News Chronicles. Out of the N10.3 trillion in intervention money, the report states that N4.4 trillion had been returned, leaving over N5.8 trillion unpaid. Certain…
Nigeria experienced its highest level of imported food inflation in February 2024, up 352 basis points from 26.3% to 29.8% during the preceding month. Nairalytics, the research division of Nairametrics, conducted an analysis that supports this. Subsequent investigation revealed that causes both internal and external have contributed significantly to the import inflation that has been rising steadily for more than 4 years. External factors include disruptions to the global supply chain brought on by the COVID-19 outbreak, the Russia-Ukraine war, and an increase in oil prices globally, among other things. On the internal front, the main cause is the lack…
To improve sustainability and cost-efficiency, the Federal Government, through the Ministry of Transportation, is thinking about converting the locomotives of the Nigerian Railway Corporation (NRC) to the more affordable and easily accessible LNG-CNG fuel. This comes after the De-Sadel consortium, as stated in a statement on the Ministry’s website, submitted a proposal on Tuesday to the NRC and the Ministry of Transportation, represented by Minister Saidu Alkali. The proposal suggested switching railway locomotives from more costly diesel to petrol. The De-Sadel consortium proposes to repair any damaged locomotives and to retrofit NRC’s locomotives with their LNG-CNG kits at no expense…
For the entire year that ended on December 31, 2023, Dangote Cement Plc, BUA Cement Plc, and Lafarge Africa Plc blew N598.137 billion on fuel and electricity. This is a 42.45% increase over the N419.879 billion that was recorded in 2022 for the same period. This amount spent amounts to 40.39% of the N1.481 trillion total cost of sales that the cement companies reported for the period under consideration. This follows a period of high inflation in 2023 that caused prices for goods and services to increase nationwide. The data can be found in the audited half-year results of the…
Co-founder and CEO of the Nigerian civic startup BudgIT, Seun Onigbinde, has supported Abdul Ningi’s assertions that the 2024 budget included over 3 trillion in funding, even though he did not disclose specifics. Onigbinde made this statement on Tuesday during his appearance as a guest on Politics Today on Channels Television. Onigbinde stated that the BudgIT team verified Ningi’s assertions while the Senate was still in a boisterous session. In an interview with the British Broadcasting Corporation, Ningi, who just resigned from his position as Chairman of the Northern Senators’ Forum due to budgetary claims, stated that more than N3…
The Federal Capital Territory (FCT) High Court in Abuja was informed on Monday by Michael Agboro, an investigator with the Independent Corrupt Practices and Other Related Offences Commission (ICPC), that Godwin Emefieleok, the former governor of the Central Bank of Nigeria, had given contracts to April 1616 and Architekon Nigeria Limited, which belonged to his wife and CBN employee Sa’adatu Yaro, respectively. Multiple contracts for the delivery of electricity lines and bank cars, as well as the refurbishment of the CBN governor’s lodge in Lagos, were given to the two businesses. Emefiele was charged by the Economic and Financial Crimes…
Despite putting the African Continental Free commerce Area (AfCFTA) agreement into effect in 2021, Nigeria’s commerce with other African nations has not yet returned to pre-COVID-19 levels. Nigeria’s commerce with other African countries is slowly recovering, according to data from the National Bureau of Statistics’ (NBS) most recent international trade report. While there has been an upward trend since the epidemic low, trade volumes have not yet surpassed the peak before COVID-19, which raises questions about how well the AfCFTA agreement has sparked a strong trade rebound. According to a breakdown analysis, N1.11 trillion was traded in goods in 2019,…
The Nigerian government is estimated to owe over N100 billion in unpaid debt related to energy, according to Sunday Oduntan, Executive Director of the Association of Nigerian Energy Distributors. In an interview with Arise TV on Sunday, Oduntan disclosed this information and said that the government must do its share to create a favorable climate for the nation’s energy distributors. The executive director claims that the Ministry, Agency, and Departments (MDAs) owe N100 billion in total debt. Oduntan emphasized that if the government had paid its electricity bills on time, the latest debt payment by the presidential villa to the…
Vice President Kashim Shettima formally launched the Intergovernmental Committee on Carbon Market Activation Plan on Thursday, marking the formation of a new committee by the Federal Government that will pave the way for a sizeable $2.5 billion carbon market. The Vice President’s spokesperson, Stanley Nkwocha, released a statement stating that the committee’s objective is to provide a methodical framework for a sustainable carbon market. This action facilitates Nigeria’s participation in the lucrative $2.5 billion carbon market and is in line with President Bola Ahmed Tinubu’s goal of reducing the country’s carbon emissions. It is also backed by the Africa Carbon…
The former governor of Anambra State, Willie Obiano, is allegedly avoiding court procedure in an alleged money laundering case, according to the Economic and Financial Crimes Commission (EFCC). The EFCC’s attorney, Sylvanus Tahir, told the court during Thursday’s hearings about the difficulties in serving Obiano with court documents pertaining to his allegations. The EFCC charged Obiano on January 24 on nine counts related to purported N4 billion money laundering. According to the charges, from 2014 and 2022, Obiano was the governor of Anambra State, and during that time he allegedly stole security votes worth N4,008,573,350. Tahir reported that there had…
The prolonged foreign exchange crisis is making it difficult for Nigeria to attain its goal of 70% internet penetration by 2025 and is impeding further investments in telecom infrastructure. The depreciating value of the Naira combined with a steady decline in foreign direct investments (FDIs) into the telecom sector has reduced operators’ ability to invest in equipment. The National Bureau of Statistics (NBS) recently released data showing a significant fall in foreign direct investments (FDIs) in the telecom industry of 70.5% in 2023. In order to fulfil the broadband objective, the Minister of Communications, Innovation, and Digital Economy stated last…
Concerns have been raised by several financial experts about the Central Bank of Nigeria’s (CBN) aggressive monetary policy approach, which has resulted in another 22.75% interest rate increase. These specialists emphasized the possible negative consequences of the increased monetary policy rate (MPR) on current bank loans in an exclusive conversation with Nairametrics. They noted that this would force banks to modify the rates at which they offer loans, which could exacerbate the amount of non-performing loans (NPLs) and strain financial stability metrics. The monetary policy rate (MPR), which was formerly 22.75%, had a significant increase of 400 basis points due…
After Nigerian regulators clamped down on the cryptocurrency exchange, Binance is scheduled to end all naira services by March 8, 2024. The company informed its subscribers that it would convert all NGN balances to USDT in their accounts. It said in a statement on Tuesday that it will no longer accept deposits in naira. “Prior to the termination of these NGN services, users are encouraged to withdraw NGN, trade their NGN assets, or convert NGN into cryptocurrency.” Naira withdrawals must end by March 8, 2024, at which point they will be changed to USDT at a rate of N1,515.13/USDT. It…
In an exciting development for football fans, Manchester United is vying for the services of Victor Osimhen, the Nigerian phenomenon, and Napoli striker, during the upcoming summer transfer period. With Paris Saint-Germain (PSG) and Chelsea as strong rivals, the Premier League’s biggest teams could face off in a transfer battle for the prolific forward as a result of this interest. Osimhen is high on both Manchester United’s and PSG’s lists of targets as they prepare for big summer transfers, as the Independent reports. The focus on Osimhen highlights the significant risks involved and the intense desire of elite European clubs…
Consumer price index (CPI) data for January 2024 was recently issued by the National Bureau of Statistics (NBS), and it showed a notable increase in the price of imported food within the Nigerian economy. The average price index for imported food increased dramatically over four years, from January 2020 to January 2024, more than doubling from 337.8 to 692.6. This represents an unparalleled increase of 105.03% within the examined period. A key economic indicator, the Consumer Price Index (CPI) tracks how prices for a market basket of goods and services, including food, have changed on average over time for urban…
Nigeria, the biggest producer of crude oil in Africa, is prepared to face difficulties in its oil output in the wake of the Organization of Petroleum Exporting Countries (OPEC) and its allies’ recent decision to prolong output restrictions for an additional three months. The move poses a serious challenge to Nigeria’s oil industry and is intended to stabilize the world’s oil markets in the face of continuous instability. The prolonged output reduction has an impact on the nation’s economy and financial planning because of its heavy reliance on oil money. According to AIONA’s chief operating officer, Jide Pratt, Nigeria should…
In a Sunday speech in Doha, Qatar, President Bola Tinubu promised to deal with anyone who attempts to erode investor trust in the nation by demanding bribes. The president assured the world’s business community that Nigeria is prepared for serious business and that his administration would take firm action against any vested interests that threaten investor faith in the country’s economy. Speaking on Sunday at the Nigeria-Qatar Business and Investment Forum in Doha, the President also promised to clear up any obstacles to successful, lawful business ventures and regain the trust of foreign investors in the nation. The President informed…
On Thursday, February 29, 2024, during an interview for the Thursday edition of “Politics Today” on Channels Television, this momentous announcement was made public. In response to a question from the program’s anchor, Governor Otti disclosed this ambitious plan. It was one of his main campaign promises to build a light rail system if elected governor of Abia State in the most recent gubernatorial elections. “We are discussing with a Chinese company and the discussions are going on well. It is not going to be easy, but it is going to be done. It is not something that you will…
Concerns have been expressed about the future of cryptocurrencies in Nigeria following Nigeria’s ban on Binance. The worries come after two weeks of government actions aimed at the cryptocurrency platform. Nigeria requested last week that its telecommunications companies limit users’ access to cryptocurrency company websites. After that, it requested that Binance and other parties stop USDT trades in naira. Nigerians are currently unable to access the Binance Peer-To-Peer (P2P) market. The news that the two executives of the company had been taken into custody surfaced on Wednesday. Following Nigeria’s recent ban on a number of bitcoin trading websites, the two…
Peer-to-peer trading on Binance, a popular cryptocurrency exchange with over 170 million users globally, was disabled for Nigerian customers. The network, sometimes referred to as the P2P market, enables users, buyers, and sellers to deal without the involvement of a middleman. Following the administration of former President Buhari’s ban on the nation’s thriving cryptocurrency business, it became more and more popular among Nigerians in 2021. After the naira quickly declined in value, leading to inflation that surged to an almost three-decade high of 29.9%, the FG turned its focus to websites that provided services related to cryptocurrencies. These websites are…
Alex Otti, the governor of Abia State, has attested that no monetary contributions were made by the previous state administration to the recently inaugurated 188MW geometric power plant project in the state. The governor made his remarks in a press conference on Tuesday at Government House, Umuahia, through Minister of Commissioner for Information and Culture, Mr. Okey Kanu. Kanu claims that some parties have maintained that the prior administration made investments for the state government’s use in the project. Kanu asserted that the government relies on facts rather than conjecture, underscoring that no supporting documentation was provided to the new…
The Central Bank of Nigeria (CBN), which continues to stand by its previous position of withdrawing direct development funding, has pledged to retrieve all of the over N10 trillion in intervention loans it has issued to various economic sectors. In announcing the results of the two-day meeting of the Monetary Policy Committee (MPC), which saw an increase in the monetary policy rate (MPR) by 400 basis points to 22.75 percent, CBN governor Olayemi Cardoso reaffirmed the position of the top bank on Tuesday. The committee increased the cash reserve ratio from 32.5 percent to 45 percent while keeping the liquidity…
Tuesday saw Bitcoin reach a two-year high due to indications that major investors were purchasing the cryptocurrency, while rival ether, which is smaller, crossed $3,200 for the first time since 2022. Due in part to a Monday announcement by software company MicroStrategy (MSTR.O), a cryptocurrency investor, the price of bitcoin has increased by more than 10% in the last two sessions. The company said that it had recently spent $155 million on roughly 3,000 bitcoins. The approval of bitcoin-owning exchange-traded funds (ETFs) in the US has also helped the original and largest cryptocurrency by market value. Contrary to apprehensive larger…
Due to a horrific stampede that claimed lives over the weekend in Lagos, the Nigeria Customs Service has declared a temporary suspension of its nationwide food distribution scheme. The intervention’s goal, according to Abdullahi Maiwada, the Service’s National Public Relations Officer, was to improve Nigerians’ access to essential food supplies and lessen their suffering by distributing confiscated food that had been deemed fit for consumption by appropriate governmental bodies and courts. “Exercise was carried out after careful planning to manage all possible dangers that could surface during the exercise. We employed military men and Nigerian police as part of our…
Since Olayemi Cardoso became governor, the Central Bank of Nigeria has issued N1.5 trillion in Open Market Operation (OMO) bills in an effort to control inflation and strengthen the naira, whose sharp depreciation has caused economic instability, according to a New Chronicles research. Most of the bids were for long-term bills with maturities ranging from 180 to 365 days. Although there have been six auctions throughout Cardoso’s tenure, only five of them have raised the N1.5 trillion that has been raised to date, according to people with knowledge of the subject. The Dec. 22, 2023 auction did not result in…
