Nigeria plans to issue its first Eurobonds since 2022 and has enlisted the advice of investment firms like Citibank NA, Goldman Sachs, and JPMorgan Chase & Co, according to a Bloomberg article. It is not yet known how big the auction will be that will take place before June. The most populous country in Africa last used the international debt market to obtain $1.25 billion through a seven-year Eurobond in March 2022. According to those familiar with the negotiations, Nigeria has also appointed Standard Chartered Bank and Chapel Hill Denham, located in Lagos, as consultants. Nigeria has $1.2 billion in…
Author: Ken Ibenne
Nigeria’s daily production of crude oil decreased by 104,000 barrels to 1.32 million barrels in February from 1.42 million barrels per day. The OPEC monthly oil market report (MOMR) states as much. The monthly amount was derived from direct correspondence between Nigeria and the OPEC authorities. On the other hand, Nigeria reported producing 1.47 million barrels of crude oil per day in February, according to secondary sources. This amounts to a daily increase of 47,000 barrels of oil. Nigeria continued to be the continent’s largest oil producer among OPEC members, despite a monthly decline in crude oil production. Nigeria’s closest…
On Tuesday, the naira appreciated 0.90 percent versus the dollar due to a rise in supply at the official foreign exchange (FX) market. According to data issued by the FMDQ Securities Exchange, following trading on Tuesday, the local currency gained value as the dollar was quoted at N1,603.38, greater than N1,617.96 posted on Monday at the Nigerian Autonomous Foreign Exchange Market (NAFEM). The intraday high rose from a low of N1,650/$1 stated on the spot to N1,637 per dollar. Additionally, the intraday low increased to N1,425.35, closing on Monday at N1,511, a higher value. The amount of dollars supplied by…
Nigeria’s currency, the naira, gained 0.58 percent against the US dollar on Monday at the official foreign exchange (FX) as the supply of the US dollar decreased. The dollar was quoted at N1,617,96 after trading on Monday, higher than N1,627.40 on Friday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to data from FMDQ Securities. This led to an increase in the value of the naira. As anticipated by analysts, this was linked to higher naira demand following the Central Bank of Nigeria’s 400 basis point increase in the Monetary Policy Rate, which brought it from 18.75 percent to…
The haulage industry in Nigeria is under threat due to growing energy and spare part costs, as operators are losing more money and finding it difficult to break even. The depreciation of the naira and the elimination of petrol subsidies have led to an additional increase in the cost of diesel and vehicle spare parts, exacerbating the predicament of truck drivers. According to the News Chronicles, the price of a litre of fuel varied between N800 to N850 a year ago to between N1,600 and N1,700 today, depending on the state and the marketer. This translates into a yearly increase…
As part of the Presidential Palliative Programme, the federal government has launched the Presidential Conditional Grant Scheme (PCGS) to empower nano enterprises. Starting on March 9th, the programme provides financial incentives to qualified small business owners who operate in a variety of industries, including trade, food services, ICT, transportation, creative industries, and artisan industries, with no return restrictions. Seventy per cent of the PCGS is aimed towards women and young people, ten per cent towards at-risk individuals, and five per cent towards senior folks. The remaining fifteen per cent is allocated to other demographic groups. The plan aims to unleash…
The currency rate used by Customs to determine tariffs at seaports was lowered to N1,544.511/$, but it was reviewed upward to N1,560.511/$ after just three days. On Thursday, March 7, 2024, the Nigeria Customs Service (NCS) official trade portal displayed the 1.1 percent increase revision. On March 4th, the import duty rate was lowered by the government from N1,630.159/$ to N1,544.081/$. Since the import tariffs are indexed to the value of the dollar, importers opening Form M will have to pay extra to clear their debts. The Central Bank of Nigeria (CBN) has instructed Customs to compute import tariffs using…
President Bola Tinubu has given the Committee on the Implementation of the Reports and White Papers on the Restructuring and Rationalization of Federal Government Parastatals, Agencies, and Commissions a 12-week deadline to finish and submit its report. This was revealed by George Akume, Secretary to the Government of the Federation (SGF), during the Committee’s Thursday, President-appointed first meeting in Abuja. In an effort to lower the cost of governance and streamline efficiency throughout the governance value chain, the President established the Committee to oversee the implementation of the White Papers on the report. This would entail the merger, relocation, subsumption,…
Despite Nigeria’s growing economic difficulties, two of the largest telecom companies’ most recent financial reports reveal that they kept a large bet on the country last year. MTN Nigeria Communications Plc and Airtel Africa Plc raised their network capacity investments to a minimum of N732.42 billion in 2023. The expenditures made by both telecoms were directed towards both new and old technologies. MTN, for example, proceeded with its 5G deployment, adding 2,106 sites by the end of 2022, up from 588. This is a 258.16% increase. As of December 2023, Airtel boasts 235 5G sites and 4G services across all…
Experts have stated that Nigeria has chances to boost foreign investment inflows to lessen its difficulties with foreign exchange liquidity as a result of the growing interest in investment migration in Africa and around the world. The method of obtaining citizenship or residency rights in exchange for financial contributions to their host nations is known as investment migration or immigration by investment. The National Bureau of Statistics (NBS) reports that capital inflows into the largest economy in Africa fell to $3.89 billion last year from $5.42 billion in 2022, the lowest level in 14 years. Nigeria’s GDP is expected to…
Due to ongoing outages in South Africa and problems with foreign exchange in Nigeria, MultiChoice Group Ltd. announced its third consecutive semi-annual loss. The largest pay-TV provider in Africa, MultiChoice, reported a net loss of 1.32 billion rand ($72.4 million) for the six months ended September 30 in a filing on Wednesday. In mid-June, Nigeria devalued its currency by 40% as a result of allowing it to trade more freely against the US dollar. Due to the company’s forced revaluation of intergroup loans, foreign exchange losses were incurred. The company’s problems were exacerbated by a 5% drop in the number…
According to data released by the Nigerian Exchange (NGX), foreign involvement in the Nigerian equity market fell to 8.15% in January 2024, down from 13.92% and 12.76% in the corresponding month of 2023. In the Nigerian stock market, transactions totaling N651.52 billion were registered in January 2024, compared to N343.9 billion in the same month the previous year. Foreign portfolio investments made up N53.11 billion of the N651.52 billion during the study period, while domestic transactions totaled N598.41 billion. Following the COVID-19 outbreak, foreign investments in Nigeria drastically decreased and have remained low ever since, primarily because of currency volatility…
Following the Central Bank of Nigeria’s decision last week to raise the Monetary Policy Rate (MPR) by a record amount among other policies intended to stabilize the naira and enhance the availability of dollars, the naira is expected to continue its upward trend this week. The CBN increased its MPR, or benchmark interest rate, by 400 basis points to 22.75 percent on Tuesday, February 27, 2024, from 18.75 percent in July 2023. Following Friday’s trade, the naira saw a 3.03 percent increase for the third day in a row as the dollar was quoted at N1,548.25, up from N1,595.11 on…
The Federal Government has declared that it is prepared to start distributing 42,000 metric tons of different cereals the following week. Additionally, it said that the second stage of the dry season farming operation would start the following week. At the first ministerial briefing on February 14, Agriculture and Food Security Minister Abubakar Kyari announced the immediate distribution of grains to mitigate the impact of economic austerity. However, Kyari stated that the process will start the following week in Abuja, alongside the governor of Niger State, when speaking to reporters on Thursday. He did not explain the delay. The National…
In contrast to a pre-tax profit of N518.8 billion the previous year, MTN Nigeria Plc has declared a loss before taxes of N177.8 billion. Investors’ money was completely lost as a result of the losses. The corporation blamed the losses on a significant foreign exchange loss that increased from N81 billion in 2022 to N740 billion. This represents the company’s first loss since going public in Nigeria. The elimination of the segmented/parallel structure that the CBN announced in June 2023, among other operational changes to the Nigerian foreign exchange market, was a major factor in the loss, according to MTN.…
On Wednesday, the federal government announced that it had obtained a $240 million investment for the domestic production of generic medications from a Brazilian pharmaceutical company. The pharmaceutical company’s identity was withheld by the minister, who revealed this during an Abuja press conference, although she did mention that at least three pharmaceutical companies had expressed interest in making investments in Nigeria. Pate, while acknowledging that the government is moving in a remarkable direction to support domestic industry. additionally disclosed that a manufacturing facility to be established by two diagnostic companies in Lagos state is scheduled to begin operations in December…
A glacial silence sweeps through Nigeria’s Southeast riotously contradicting the cyclones of protests scything through major Nigerian cities, and turning well-appointed paunches in Abuja in the process. Maybe someone should wake the Southeast and tell them that something is happening in Nigeria. Emissaries, perhaps even messengers of doom and bearers of sad news, should hasten to the Southeast and break the news to them that something is happening in Nigeria. Word has to reach that region that defied the odds between 1967-70, and has largely borne the brunt of Nigeria’s dysfunction since then, that finally, the pregnant silence has put…
An investigation into the methods and means of providing a N30 trillion loan, interest included, to the federal government has been initiated by the Nigerian Senate. A committee was established by the upper house to investigate how the loan was used under President Muhammadu Buhari. The committee, chaired by Senator Jibrin Isah of Kogi East, has four weeks to wrap up its probe. Senator Adamu Aliero, who represents Kebbi Central, is among the committee members; Adetokunbo Abiru, Senator representing Lagos East, Asuquo Ekpenyong, Senator representing Cross River South; Mohammed Tahir Monguno, Senator representing Borno North; Victor Umeh, Senator representing Anambra…
Since the federal government’s foreign exchange reform went into effect eight months ago, customs charges paid on imported products have increased by almost 93% due to the naira’s ongoing depreciation against the dollar. Import clearance costs are greater, which puts further strain on already challenged enterprises and makes it harder for them to stay afloat. The weaker naira forced manufacturers and importers of finished goods to continue spending more to bring commodities into the country, which resulted in a rise in customs duties. The naira has been volatile since it crossed the N1,000 threshold to one dollar at the official…
Nigeria, a country endowed with abundance in culture, resources, and potential, has become entangled in an almost unbreakable web of corruption. In addition to impeding development, corruption’s ubiquitous effect has brought Nigeria to the verge of becoming ungoverned. This opinion piece will examine the many ways that corruption has permeated Nigerian society, creating major obstacles to efficient government and impeding the country’s progress. In Nigeria, corruption has deep roots and spreads to many different sectors and governmental levels. Corrupt activities, ranging from bribery and nepotism to the misappropriation of public monies, have sadly become the standard. The faith that citizens…
The Oronsaye Report stands out as a paper full of potential that is mainly unrealized in the complex fabric of Nigerian governance. The study, which was discussed and commissioned under the Buhari government and during the Goodluck Jonathan administration, made promises about streamlined governance, cost savings, and efficiency, all of which have not yet been fulfilled. With Bola Tinubu leading Nigeria into a new era, the question of whether the Oronsaye Report will ever see any significant implementation remains a pressing one. Reexamining the Oronsaye Report In 2014, the Steve Oronsaye-led Presidential Committee on the Rationalization and Restructuring of Federal…
According to the National Bureau of Statistics (NBS), Nigeria saw a significant 88% decline in its foreign capital inflow from the United States during the fourth quarter of 2023, marking an unanticipated turn of events and a stark contrast with earlier positive outlooks on US-Nigeria economic relations. Due to this sharp decline, capital inflow from the United States fell to $8.34 million in the fourth quarter from $67.04 million in the third, the lowest amount of U.S. capital importation into Nigeria ever noted. This dip is not just a quarterly oddity; it also represents a startling 80% year-over-year decrease from…
The Nigerian Communications Commission (NCC) has upheld that February 28 is the deadline for cutting phone connections without National Identity Numbers (NIN). Reuben Mouka, the NCC’s head of public affairs, revealed this on Monday. This comes after the commission ordered carriers to limit outbound calls on SIM cards that have not yet filed their NINs in April 2022. Mouka reiterated the position of the NCC, saying, “I am not aware of any extension and assured there won’t be. It’s a truth that the deadline hasn’t changed, and I’m at a loss for words. The deadline of February 28 remains in…
MicroStrategy Inc., the largest publicly traded corporate Bitcoin holder, had its X account hacked, resulting in a $440,000 loss for unwary customers due to a phishing attempt. Crypto security experts are currently investigating this occurrence, which had serious outcomes as some users unintentionally became victims and gave their money to the attackers, according to Bloomberg. The hack happened on a Monday in Asia, and it was the work of a skilled hacker who placed and then removed a post on MicroStrategy’s X page. This post falsely promoted a new cryptocurrency that the Virginia-based corporation was purportedly endorsing. In a standard…
Crude oil production is far less expensive in Iran, Saudi Arabia, and war-torn Iraq than it is in Nigeria, the continent’s largest oil producer. Nigeria is the second most costly location to harvest black gold after the shale oil area in the United States. The nation’s oil and gas industry, which for many years has contributed significantly to government revenue and foreign exchange gains, is in dire need of rescue and is on the verge of collapse. The Federal Inland Revenue Service (FIRS) chairman, Zacch Adedeji, said lawmakers last week that the average cost of producing a barrel of crude…
In its most recent Treasury Bills auction, the Central Bank of Nigeria (CBN) auctioned an astounding N1.58 trillion as the top bank carried out its continuous mission to control liquidity in the banking system. Investors showed a great deal of interest in the February 21 auction, with the CBN putting up stop rates as high as 19%. Tenor-wise, the auction was divided into three groups: 91-day, 182-day, and 364-day bills. The N11.96 trillion in 91-day bills that the apex bank was offering, along with a 17.00% stop rate, attracted a lot of short-term investors. All tenors saw strong subscription numbers,…
Nigeria’s oil sector GDP has expanded for the first time since the first quarter of 2020, which is a positive development and could be a turning point for the country’s economy. This announcement follows multiple quarters of decline brought on by unstable oil prices and difficulties with production. The oil sector’s GDP expanded by 12.11 percent in the fourth quarter of 2023, according to the most recent data issued by the National Bureau of Statistics (NBS). This represents a major reversal from the negative growth figures observed since the first quarter of 2020. Additional research revealed that the GDP of…
Nigeria is expected to experience an alarming 8% rise in banking malware assaults by 2023, according to a recent statement from Kaspersky that provides insight into the cyber security situation in Africa. The increase in attacks aimed at sensitive data and online banking credentials is a major cause for concern, even if threats have decreased by 10% nationally overall. The text of the statement said: “Though banking malware attacks aimed at obtaining sensitive data, including online banking credentials, from compromised machines increased by 8%, Nigeria witnessed a 10% overall decrease in all threats.” The assertion highlights a more general pattern…
Nigerians have been reassured by the nominees for the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) that the MPC will endeavor to promptly tackle the foreign exchange problem and food inflation. The names of candidates for the Monetary Policy Committee of the top bank were sent to the Senate by President Bola Tinubu last week for approval, in advance of the MPC meeting the following week. The Senate examined these candidates on Wednesday for membership in the MPC. Six of the twelve nominees were vetted by the Senate through its Committee on Banking, Insurance, and Other…
The Federal Government’s plans to recapitalize and restructure the Bank of Agriculture (BOA) have been made public by Vice President Kashim Shettima. Nigeria’s agricultural industry is to be strengthened, and national food self-sufficiency is to be ensured. Speaking at the inaugural National Council on Privatization (NCP) gathering in 2024, Vice President Shettima stressed the critical role that the Bank of Agriculture (BOA) plays in guaranteeing food security for the country. He emphasized the bank’s extensive reach in this vital task, pointing out that it has branches in every senatorial district in the nation. By suggesting that the Green Imperative Project…
