Author: Temitope N.

The Chief Economic Adviser to the Imo State Government, Professor of Sustainable Finance at the European University Institute, Italy, Professor Kenneth Amaeshi, has joined the Scientific Committee of the European DIGITAL SME Alliance. A statement indicated that the European DIGITAL SME Alliance is the largest network of ICT small and medium enterprises in Europe, representing more than 45,000 companies. It noted that DIGITAL SME is the joint effort of 30 national and regional SME associations from EU member states and neighbouring countries to put digital SMEs at the centre of the EU agenda. It mentioned that the committee creates a…

The President of the Association of Outsourcing Professionals of Nigeria, Mope Abudu, has stated that outsourcing businesses have been affected by headwinds, ranging from infrastructure deficiencies, lack of policy and standards for outsourcing services, and diminishing quality and education standards of the labour force, amongst others. Abudu said this during the 11th Edition Outsourcing Expo, themed ‘Navigating Economic Volatility: Strategies for Sustainable Outsourcing in Nigeria’, held recently in Lagos. “The business and economic environment in Nigeria continues to be one of volatility and uncertainty. Yet as solution providers, outsourcing service providers must be agile and innovative in their value proposition…

The Minister of Power, Adebayo Adelabu, on Tuesday, declared that sanctions would be imposed on any agency or director that fails to meet corporate expectations in the power sector. This warning was given during a meeting where performance contracts were signed with various agencies in the sector in Abuja on Tuesday. A performance-based contract is a type of contract that ties payment to specific performance metrics or outcomes, ensuring that contractors are paid based on their actual performance. PBCs are commonly used in situations where desired outcomes are clearly defined and contractors have control over delivery. These contracts specify key…

Following the lifting of the visa ban on Nigeria, the United Arab Emirates Government has increased its visa fee by over 300 per cent, which has been condemned by air travellers in the country. Expressing anger over the development, a traveller at the international wing of the Murtala Muhammed International Airport, Lagos, Rose Aikigbe, said “This is a clear indication that the UAE government doesn’t want Nigeria in their domain. How much is the United Kingdom taking? Why is the amount so out of reach? “I think the Nigerian government needs to do more engagement with the government of the…

TotalEnergies has disclosed that it has sold its participation stake in three additional licenses primarily generating gas, which presently contributes 40% of Nigeria’s LNG production, to a Mauritian company. Despite the divestment, TotalEnergies will retain ownership of the production share, ensuring access to associated infrastructure and pipelines essential for supplying gas to the Nigeria LNG plant. “This divestment…allows us to concentrate our onshore Nigeria operations solely on the integrated gas value chain and is intended to ensure uninterrupted feed gas supply to Nigeria LNG in the future,” said Nicolas Terraz, President of Exploration & Production at TotalEnergies. Since February, the…

Dangote Industries Ltd. has commended the Nigerian Upstream Petroleum Regulatory Commission for its various interventions in the oil company’s crude supply requests from International Oil Companies. The Vice President of Dangote Industries, Mr Devakumar Edwin, commended the commission in a statement on Wednesday in Lagos. Edwin said that NUPRC should also be commended for publishing the Domestic Crude Supply Obligation (DCSO) guidelines to enshrine transparency in the oil industry. He said: “If the Domestic Crude Supply Obligation (DCSO) guidelines are diligently implemented, this will ensure that we deal directly with the companies producing the crude oil in Nigeria as stipulated…

United Capital grew post-tax profit by 65 per cent to N7.74bn in the first half of 2024, from N4.69bn recorded in the same period in 2023. This was disclosed in its half-year 2024 financial statement filed with the Nigeria Exchange Limited on Wednesday. The company’s gross earnings rose by 37.5 per cent to N15.15bn compared to N11.01bn in the first half of 2023. However, investment income declined by 5.4 per cent, falling from N4.96bn in H1 2023 to N4.69bn, while fee and commission income was up by 71.8 per cent to N6.31bn. Net trading income jumped from N622.6m in 2023…

The Federal Government has obtained $751.88m out of the recently approved $1.5bn loan by the World Bank. The loan under the Nigeria Reforms for Economic Stabilisation to Enable Transformation, Development Policy Financing Programme project was disbursed on June 28, 2024, documents from the global financial institution seen by The PUNCH indicated on Wednesday. This loan project is a part of the broader $2.25bn approved by the World Bank for Nigeria on June 13, 2024, to bolster Nigeria’s economic stability and support its vulnerable populations. The $1.5bn loan comprises two separate agreements between Nigeria and the World Bank: An International Development Association credit…

MTN Nigeria recorded a 1.99% gain, representing an equity gain of N81.9 billion on the final trading day of the week.   The gains posted by the stock were the major factor in the 0.04% marginal gain posted by the NGX during the day. The NGX posted an All-Share Index of 100,539.4 points, from yesterday’s 100,503.21. There was also a marginal N30 billion rise in the overall market capitalization to N56.93 trillion from yesterday’s N56.90 trillion.   Although the market continued its bullish run, the market breadth was negative, as there were 28 losers in contrast with 17 gainers. Market activities today…

The bullish dollar index and summer vacation have led to a considerable increase in demand for foreign currencies, putting significant pressure on the naira. The naira hit a four-month low on Wednesday, trading at N1,612.50/$ in the official market. However, recent price action in the black market indicated that the naira appreciated against the U.S. dollar below the N1600 band. On the official market, it fell to N1596.92 per dollar on Friday. The CBN increased FX sales to accredited dealers at a market discount, allowing them to sell U.S. cash to curb the increasing values in both the official and…

Financial analysts at United Capital Plc have forecasted that the exchange rate will stabilize, trending between N1,423.26/$ and N1,550/$ by the end of 2024. This projection was stated in their HY-2024 Economic Outlook Report, titled “Balancing Act: Nigeria’s Path to Economic Stability.” The analysts noted that the outlook for Nigeria’s exchange rates in the second half of 2024 appears favorable, with the naira expected to stabilize and appreciate due to several positive economic developments. The report highlights two critical factors contributing to this projected stability: the commencement of local petrol supply from the Dangote refinery in July, which will reduce…

Total trading volume on centralized exchanges declined by 21.8% in June, marking a third consecutive month of declining trading activity since March. A report from CC Data revealed that the combined spot and derivatives trading volumes across centralized exchanges was $4.2 trillion a far cry for when it hit its peak in March with a total of $9 trillion in trading volume. The report highlighted reasons for this noticeable decline in trading volume pointing at a sharp decline in open interest in derivatives exchange. In June, open interest on derivatives exchange fell 9.67% to $47.11 billion. The trend persisted into July with Top centralized…

Bitcoin price has seriously recovered from weeks of facing selling pressure which saw its price drop to as low as $53, 500 on July 5 to hit the $66,000 mark at the time of writing this report. Bitcoin resurgence continues unabated as major institutions worldwide battle with a major Information Technology (IT) downtime affecting Microsoft’s cloud computing service. Bitcoin price was unaffected by the Global IT outage which left major airlines, medical facilities, corporations, and police forces stranded as their daily operations were hindered by the global IT outage. George Kutrz, the CEO of Crowdstrike, a Cybersecurity firm gave its two cents…

The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso has stated that the country’s external reserve has increased to $36.89 billion as of July, 16 2024.   CBN Governor, Mr. Olayemi Cardoso, made this statement during an engagement with the Senate Committee on Banking, Insurance, and Other Financial Institutions in Abuja on Friday. He noted that the CBN’s monetary policies and actions have stimulated growth and stability in the nation’s economy.  According to him, the nation’s external reserves of the end of June, could finance over 11 months of imports for goods and services, or 14 months for…

The Federal Government said it has launched a comprehensive strategy to lead Africa’s digital trade revolution within the framework of the African Continental Free Trade Agreement (AfCFTA). Vice-President Kashim Shettima, disclosed this on Friday while delivering a keynote address during a Stakeholders Summit held at the Presidential Villa, Abuja. According to him, the roadmap would harness trade as a catalyst for economic growth and continental cohesion in line with AfCFTA objectives. Shettima outlined key components of the roadmap to include implementation of AfCFTA’s Digital Trade Protocol and the development of expansive technical talent hubs. Nigeria’s strategic position Shettima said Nigeria…

In 2023, eleven Nigerian banks incurred a total of N575.168 billion in taxes, marking a significant 175% increase compared to the N209.608 billion incurred in 2022. Out of this total, N440.305 billion was specifically for that taxable year, 2023. This dramatic rise in tax expenses can be attributed to a substantial increase in pre-tax profits recorded by these banks. The banks collectively made N3.722 trillion in pre-tax profits, driven by a rise in net interest income, non-interest income, and foreign exchange revaluation gains. This pre-tax profit figure represents an impressive 197% increase from the N1.255 trillion reported in 2022. These…

The Postmaster-General of the Federation, Ms Tola Odeyemi, has said that the Nigeria Postal Service (NIPOST) is going through a reform that would see 50% of its 1,400 offices modernized by 2027.  Odeyemi disclosed this at the Nigerian-British Chamber of Commerce (NBCC) event, “NBCC meets Postmaster General” on Thursday in Lagos. According to her, Nigeria is currently pushing to revamp and upgrade logistics and courier processes to world-class standards for improved international mail exchange.  “There is work ongoing on the Postal Reform Bill to separate the regulatory arm from the operation arm as many stakeholders are clamouring. By 2027, NIPOST…

The Nigerian Vice President, Kashim Shettima, has said that the federal government is committed to bringing over 30 million unbanked Nigerians into the formal financial system.   According to a statement issued on Thursday by the Senior Special Assistant to the President on Media & Communications, Stanley Nkwocha, the VP stated this during a high-level policy dialogue between the Nigerian government and private sector stakeholders held in Washington DC, the United States capital.  In line with the commitment, the VP said there is an urgent need for financial innovation to drive Nigeria’s economic and financial inclusion agenda.  The initiative, which brought…

Global tax and advisory service firm, KPMG Nigeria has criticised the 50% windfall tax on the bank’s foreign exchange revaluation gains recorded in 2023 stating that it could result in a legal dispute.   The firm stated this in its reaction to the recently imposed tax on banks by the federal government where it stated that current revenue challenges of the government may have triggered the tax.   According to the firm, Nigeria’s tax policy does not support retroactive taxation and since most banks have settled their tax liabilities for the financial year of 2023, it could lead to a constitutional crisis…

In recent weeks, a series of monetary policy decisions have seen central banks across Africa hold benchmark interest rates, as inflationary pressures ease across the continent. In South Africa, the South African Reserve Bank voted to hold its benchmark rate at 8.25%. According to reports, four members of its monetary policy committee voted to hold the rates, while two voted for a 25-basis point cut. Speaking to pressmen on July 18, South Africa’s central bank governor, Lesetja Kganyago noted that the committee members agreed to hold the rate to mitigate future inflation risks. “The battle against inflation is not yet…