The CBN conducted another auction of Treasury bills (NT-bills) on April 12, 2024, with the yield on the 364-day bills dropping to 20.7%, from the previous 21.124%. The auction saw the CBN successfully sell N951.83 billion worth of bills, representing a 42% decline from the N1.64 trillion sold during the March 27 auction. The CBN offered N149.64 billion of NT-bills during the auction, offering N2.78 billion of the 91-day bills, N3.02 billion of the 182-day bills, and N143.84 billion of the 364-day bills. More than 1000% Oversubscription The CBN recorded an oversubscription of 1119%, as the total subscription received during…
Author: Temitope N.
The Nigerian Exchange Limited (NGX) has listed Royal Exchange Plc’s rights issue of 3.121 billion ordinary shares of 50 kobo each on its Daily Official List. According to the NGX in its weekly report seen by Nairametrics, with the listing of the additional 3,121328,866 ordinary shares, the total issued and fully paid-up shares of Royal Exchange have increased from 5,145,370,074 to 8,266,698,940 ordinary shares of 50 kobo each. The statement reads: “Trading Licence Holders are hereby notified that an additional 3,121,328,866 ordinary shares of 50 Kobo each at N0.50 per share of Royal Exchange Plc (Royal Exchange or the Company)…
South African hospitality group, Sun International Limited has announced plans to sell off 43% of its shares in Tourist Company of Nigeria Plc, the owners and operators of Federal Palace Hotel and Casino. According to a notice accessed by The Infostride, Sun International Limited which owns a 49% shareholding in Federal Palace Hotel and Casino, is divesting 43% of its shares to Rutam Finance Company. Rutam Finance Company is an associate of Oma Investments Limited, another existing shareholder in Tourist Company of Nigeria Plc (TCN). In the notice signed by Lovelyn Aniekwe, TCN’s Company Secretary, it was noted that the…
The NGX continued its bearish trajectory for the second consecutive week as the market recorded a 1.09% decline during the week ending April 12, 2024, to close at 102,314.56 points from the previous week’s 103,437.67 points. Equities also lost N613 billion, as the NGX closed the week with a market cap of N57.865 trillion, representing a 1.08% decline from N58.498 trillion at the start of the week. The market, which was closed for three days during the week, was mostly affected by the continued bearish performance of banking stocks. Among the top weekly losers, Access Holdings lost 14.60%, GTCO had a 13.75%…
The Lagos State Government through the Lagos State Fire and Rescue Service has moved to enforce proper safety measures across all markets in the state. This is as the Lagos State Fire and Rescue Service has launched an extensive plan to bolster fire safety measures in markets across the state. This follows a recent fire outbreak at Dosunmu market on Lagos Island and a subsequent on-the-spot assessment by Governor Babajide Sanwo-Olu. This disclosure is contained in a statement issued by the Deputy Director, Public Affairs, Lagos State Fire and Rescue Service, Ololade Agboola, where he stated that under the directive…
The Nigerian Copyright Commission (NCC) has recently made a significant seizure, intercepting three shipping containers laden with 3000 cartons of pirated books at Onne Port, Rivers State worth about N300 million. Dr. John Asein, the Director-General of the commission, revealed this development in a press statement released to the public. According to Asein, the intercepted containers, with an estimated market value exceeding N300 million, contained pirated books belonging to prominent Nigerian publishers, including Africana First, Bounty Press, Evans, Learn Africa, Macmillan, Metropolitan, and University Press Plc. This seizure shows the persistent threat of piracy facing the nation’s publishing industry. What…
The Federal Competition and Consumer Protection Commission (FCCPC) has told Nigerian citizens to report instances of unfair trade practices, emphasizing its resolve to take decisive actions against businesses found engaging in price fixing. In a tweet posted on Sunday, April 14, 2024, the commission reaffirmed its commitment to safeguarding consumer interests amidst mounting concerns over escalating prices despite a decline in dollar rates. This was in response to complaints by Nigerians on X (formerly Twitter) who lamented the rising cost of goods despite dollar rates falling. FCCPC’s response “The FCCPC acknowledges that the rising cost of essential goods impacts consumers’…
The number of food insecure people in West and Central Africa is projected increase by 400% to a five year high of 55 million for the 2024 June to August lean season. The March 2024 Cadre Harmonisé food security analysis projects a four million increase in the number of food insecure people in the region during the period. According to the report, currency devaluation, restrictive trade practices and heightened inflation were the factors responsible for the worsened food situation across the region with Ghana, Mali, Nigeria and Sierra-Leone the most affected. It stated, “Nearly 55 million people in West and Central…
Across the local food markets in Lagos, there is a noticeable fall in the prices of foreign-produced foods or foods with foreign raw materials, while the prices of locally produced foods continue to rise. This is based on a survey conducted by Nairametrics across major food markets in Lagos. The survey was for a period of one month, covering from March 12th to April 11th. A bag of foreign rice in Igando Market, which sold for N88,000 two weeks ago, now sells for N78,000. In Iyana Ipaja Market, the same bag of rice was sold at N90,000 three weeks ago,…
The Central Bank of Nigeria (CBN) increased the monetary policy rate (MPR) by 400 basis points, elevating it to a historic high of 22.75% to combat inflation and foster economic stability. This pivotal adjustment signifies a major shift from the previous rate of 18.75%, which had been in effect since the Monetary Policy Committee’s (MPC) meeting on July 24th and 25th, 2023. The recent announcement, made by CBN Governor Yemi Cardoso, highlights the central bank’s proactive approach towards monetary tightening amidst challenging economic conditions. This unprecedented move has not only set the MPR at its highest level to date but also reflects…
The Manufacturers Association of Nigeria (MAN) has urged for equitable regulatory frameworks to safeguard the interests of both consumers and manufacturers. Ajayi-Kadir, the Director General of MAN made this call-in response to the viral social media incident involving Erisco Foods and a dissatisfied customer, Mrs. Chioma Egodi, who criticized Nagiko Tomato Mix, a product of Erisco Foods, for its sweetness in a Facebook post on September 17, 2023. What he said Addressing the need for protective measures, Ajayi-Kadir emphasized, “While we acknowledge and encourage consumers’ right to voice legitimate complaints through appropriate channels, it is important to hold consumers accountable…
President Nayib Bukele of El Salvador has launched a groundbreaking program, allocating 5,000 free passports to accomplished professionals globally from various disciplines. This initiative, which is valued at $5 billion, aims to attract scientists, engineers, doctors, artists, and thinkers, who will be granted full citizenship privileges, including voting rights with the goal of fostering the nation’s progress and prosperity. This landmark scheme offers complete citizenship benefits and assures seamless migration with zero tax and duty charges. What he said President Bukele has highlighted the inclusiveness and strategic intent of this policy, pointing out the manageable scale of passport distribution, which is less…
The United States has warned Kenya that it risks losing billions of shillings through its major financial system called the Integrated Financial Management Information System (Ifmis). The US analysis flagged vulnerabilities in the financial auditing tool notifying the Kenyan government of the impending risk. According to the East African Publication, a fresh report from the Office of the United States Trade Representative (USTR) stressed the vulnerabilities of Kenya’s Integrated Financial Management Information System as reported by US companies doing business in Kenya. “US companies have expressed concerns about Ifmis due to insufficient connectivity and technical capacity in county government offices, apathy…
Small-scale traders in Uganda who import goods from China are currently in a tight fix over gaps in cargo documentation, rising import tax bills, and overall bureaucracy despite advanced trade management tools from their country’s regulatory body. According to the East African Publication, a recent directive from the Uganda Revenue Authority (URA) requires importers to submit master and house bills of lading for all cargo containers arriving in the country. This new directive has left traders in the country who usually prefer consolidation of cargo in a dilemma. The country’s revenue authority explained the reason behind its new directive in a…
Nigeria is set to receive the balance $1.05 billion from a $3.3 billion Afrexim bank loan backed by oil revenues by the end of May, aiming to rejuvenate the economy and enhance the availability of foreign currency in the domestic exchange market. The Senior Executive Vice-President for Finance, Administration and Banking at Afreximbank, Denys Denya said the bank has verified the crude availability and would release the balance next month. He stated, “The verification of the crude availability has happened, so we expect in the next month to finalize the release of the balance. Based on future production, you get the…
The Federal Government has unveiled the upgraded Citizens’ Delivery Tracker App, which will enable all citizens to view the deliverables and key performance indicators for all ministries and give their assessments. The government said the tracker is available at app.cdcu.gov.ng. and can be downloaded on Google Play Store and Apple Store. However, checks by Nairametrics show that the app is not yet available on those platforms as of the time of filing this report. Hadiza Usman, Special Adviser to the President on Policy and Coordination and Head of the Central Delivery Coordination Unit (CDCU), spoke at the go-live event of…
The Universities in the Netherlands (UNL), a collective organization for higher education in the country, has decided to reduce the number of undergraduate courses offered solely in English. This decision is a response to ongoing demands to cut down the influx of international students. Previously, the umbrella body attributed issues including student housing shortages and a decline in education accessibility and quality to a growth in international student numbers. Following an agreement made earlier this year, the universities under UNL resolved to stop new English-taught undergraduate programmes, cease international student recruitment activities, and eliminate foundation years for international students. This action was…
Economic growth in Sub-Saharan Africa (SSA) is projected to increase over the next two years, but it is unlikely to significantly alleviate poverty across the region, the World Bank said in a report. The region’s economy is expected to expand by 3.4% this year and 3.8% in 2024, driven in part by a decrease in inflation, which is anticipated to bolster private consumption. The shocks of COVID-19 and Russia’s war in Ukraine According to Reuters News, many countries in SSA were hit hard by the shocks of COVID-19 and Russia’s war in Ukraine, which pushed up inflation and interest rates,…
KPMG has said that the effectiveness of the Central Bank of Nigeria’s (CBN) monetary tightening strategies may fall short unless Nigeria addresses the underlying supply-side constraints fuelling cost-push inflation. In issue 15 of the Flashnotes publication of KPMG in Nigeria, which was seen by Nairametrics, the firm emphasised the need for a balanced approach that tackles both demand-pull and cost-push inflationary pressures. It called for collaborative efforts between fiscal and monetary authorities to dismantle the supply-side barriers contributing to inflation. The document read: “We recognise that price stability is a necessary condition for economic growth. We equally recognise that raising…
Zimbabwe has announced the launch of a new currency, as the country has effectively given up in its effort to salvage the Zimbabwean Dollar. The new currency which will be called ZiG is set to be introduced on April 8, 2024, with an initial exchange rate set at 13.56 per dollar. Additionally, a new interest rate of 20% has been established, contrasting sharply with the previous rate of 130% on the old Zimbabwean Dollar. It is also noted that the new currency will be backed by a diverse basket of foreign currencies, gold, and other precious metals. The move was…