Benjamin Kalu, the Deputy Speaker of the House of Representatives, has expressed his apprehension regarding Nigeria’s continued dependence on debt for its budget allocations and economic development. At a stakeholders’ dialogue held in Lagos on Saturday to discuss the implementation of Section 45 of the Fiscal Responsibility Act, Kalu emphasized the necessity for Nigeria to achieve self-sufficiency and independence rather than relying on loans. Kalu, represented by Mr. Nalaraba Abubakar, Chairman of the House Committee on Loans and Debt Management, pointed out that previous administrations resorted to loans to fund their budgets, a practice he deemed unsustainable. “We encourage states…
Author: Temitope N.
Oxfam International has issued a report indicating that emerging economies, including some of the world’s most impoverished nations, are on the verge of facing budget cuts exceeding $220 billion over the next five years due to an impending debt crisis that has pushed many countries to the brink of default. This information comes from a recent Oxfam report released coincidentally with the commencement of the IMF-World Bank meetings in Marrakech. The report, drawing upon IMF projections, also reveals that low- and lower-middle-income nations are expected to grapple with daily interest and debt payments totaling nearly half a billion dollars until…
The United Kingdom (UK), the United States of America (USA), the Republic of South Africa (RSA), Singapore, and the United Arab Emirates (UAE) collectively accounted for a significant 79% of Nigeria’s capital imports between 2019 and the first half of 2023. However, these major contributors have experienced substantial reductions in their investment volumes. The UK saw the most significant decline, plummeting by a staggering 85.49% from $11 billion in 2019 to an estimated annualized value of $1.61 billion in 2023. Similarly, the USA followed suit with an 84.4% drop, going from $4.69 billion to an expected annualized figure of $734.6…
In an editorial, the Financial Times publication based in London has observed that President Tinubu’s economic reforms appear to be encountering challenges, suggesting that despite his initial bold steps, which included the removal of fuel subsidies and a shift toward a market-driven exchange rate, events in the past four months indicate that further efforts are needed. The publication stated: “While President Tinubu has made progress by eliminating a costly fuel subsidy and transitioning to a market-driven exchange rate, which has significantly devalued the previously overvalued currency, his reform agenda seems to be encountering obstacles four months into his presidency.” Regarding…
In its latest World Economic Outlook report, the International Monetary Fund (IMF) has reduced its economic growth projections for Sub-Saharan Africa. According to the report, the region’s economic growth is expected to slow for the second consecutive year in 2023 before rebounding in 2024. The IMF’s World Economic Outlook report indicates that the growth in the region is projected to decline to 3.3% this year, down from the 4% growth observed in the previous year, with a subsequent recovery to 4% in 2024. This projection is slightly lower than the IMF’s July forecast, which had anticipated growth of 3.5% in…
In September, Egypt experienced an unprecedented surge in inflation, reaching a historic high of 38%, a figure that exceeded expectations, according to Reuters reports. Data from the statistics agency CAPMAS revealed that the annual urban consumer price inflation, which was 37.4% in August, witnessed a significant increase. This surge in inflation represents the fourth consecutive month of reaching record highs, as reported on the central bank’s website, which has maintained data records dating back to 2000. The main factors contributing to this inflationary trend were the rising prices of food and beverages. A poll of 18 analysts had predicted a…
The Lagos State Government is embarking on a cutting-edge Geographic Information System (GIS) project to revolutionize property mapping and identification processes. This initiative is set to significantly streamline the Land Use Charge (LUC) billing and payment procedures within the state. Mr. Abayomi Oluyomi, the Commissioner of Finance, unveiled this forward-looking system during a Land Use Charge Matters event in Lagos. He emphasized that this innovative system will effectively eliminate the possibility of property owners evading their Land Use Charges. He stated, “Commencing from December 2023, the State Government will be embracing the Geographic Information System to facilitate the prompt collection…
Dave Umahi, the Minister of Works, has issued a stern warning, stating his intention to refer ministry officials who have colluded with contractors to obstruct the government’s initiatives to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for potential prosecution. This development comes nearly two weeks after an altercation between Umahi and ministry staff when he locked them out of their offices. Umahi disclosed this during an interview with State House correspondents at the State House in Abuja, following a meeting with President Bola Tinubu. He emphasized his determination to eliminate these individuals from the ministry, accusing them…
MTN Nigeria Plc recorded a loss of N143 billion in market value at the end of Tuesday’s trading session on the Nigerian Exchange to rank among the losers of the day. MTN Nigeria’s share price depreciated by 3.26% to close at N208.00 per share, taking the market capitalization to N4.233 trillion from the N4.376 trillion it closed the previous day. Low sentiment: The decline in share prices can be attributed to investors’ low sentiment informed by the 2023 general elections approaches, even as speculators continue to move their funds to money market instruments for higher yield following the interest rate hike.…
Nigeria’s exchange rate crisis had crashed foreign investor participation in the stock market to just 16.8% when compared to their domestic counterparts. This is largely due to capital controls put in place by the central bank limiting currency repatriation as well as the disparity between the official and parallel market rates. On Tuesday, the exchange rate between the naira and the dollar fluctuated between N444 and N446 to the dollar at the official market. However, the rate on the parallel market was N745 to the dollar. The parallel market, where the dollar is freely exchanged but at a premium of 80% to…
When Akin arrived in the United Kingdom (UK) earlier this year, he was grateful to God for delivering him from Nigeria. Life had been tough for him back home, from his stressful job to long-commute hours due to traffic, landlord problems, epileptic power supply, and constant insecurity amongst other challenges. A friend had convinced him to switch to the UK where his skills would be better compensated. However, what the friend did not tell him was that life is not all that sweet in the land of milk and honey. Things were about to get tougher. Akin, a former supervisor…
The Nigerian Government said it has commenced an investigation into some generator importers, manufacturers, assemblers & distributors, especially Mikano, Jubali Brothers and JMG. This was disclosed in a statement by the Federal Competition and Consumer Protection Commission (FCCPC) which said it already received credible intelligence and carried out preliminary inquiries. A serious investigation: The broad investigation into generator importers, manufacturers, assemblers and distributors is to confirm whether reported incidents of overpricing, multiple or duplicitous models, import and or customs clearing malpractices and other crimes. To this end, the FCCPC has requested the assistance of Nigerian customers who are willing to share their experiences with the generator manufacturers,…
The average price of 1kg tomato rose by 30.06% from N342.25 in September 2021 to N445.12 in September 2022. This was disclosed by the Nigerian Bureau of Statistics (NBS) in its Selected Foods Price Watch Report for September 2022. According to the report, the price of 1kg boneless beef rose by 24.39% year-on-year to N2,199.37. Part of the report Selected Food Price Watch by the NBS said: “At the state level, the highest average price of rice (local sold loose) was recorded in Rivers with N621.61, while the lowest was recorded in Jigawa with N371. Ebonyi recorded the highest average price of beans…
Nigerian Governors have warned that given the constant reductions in FAAC Allocation to states, it would be suicidal if the Central Bank of Nigeria (CBN) goes ahead to carry out its proposed recovery of state loans. In reaction to the warning, the National Economic Council (NEC) said it will negotiate with the CBN and the Finance Ministry on loan recovery. The developments were disclosed by Governor David Umahi of Ebonyi State after a virtual NEC meeting presided over by Vice President Yemi Osinbajo on Thursday at the Presidential Villa, Abuja. The Governor added that NEC also agreed to set up a committee to engage the CBN governor and the Finance…
Panelists at the ongoing West African Clean Energy & Environment (WACEE) Trade Fair & Conference 2022 have identified a lack of data and currency mismatch as the main reasons investors are reluctant to invest in Nigeria’s off-grid power sector. The panelists disclosed this on day two of the WACEE conference in Lagos while addressing the issue of sustainable financing gaps in Nigeria’s off-grid sector. Among the panelists were Eme Kponu, the Energy Market Advisor for the United States Agency for International Development (USAID), Daniel Adedokun, Head of Geocycle at Lafarge Africa Plc, and Victoria Uwadoka the Head of Corporate Communications at Nestle…
The exchange rate between the naira and the US dollar recorded a sharp fall on Friday morning, 21st October 2022, trading at a minimum of N755/$1 at the black market compared to N742/$1 recorded on Thursday. This is according to information from black market operators. The depreciation of the local currency at the black market was attributed to increased demand and sustained FX scarcity in the market. According to Nairalytics’ exchange rate tracker, the rate at N755/$1 is the highest on record. It also indicates a market differential of N313.87/$1 between the official market and the parallel market. Also, at…
Let’s face it; Nigeria’s skyrocketing inflation and a few high-yielding investment options are already deterring some investors from investing in the continent’s largest frontier market. The risk that investors confront is ranked highly by this rise in the cost of goods and services. The average investor’s portfolio is negatively impacted by inflation because you need to consistently generate returns that are higher than inflation to make genuine progress toward your financial goals. This indicates that the typical Nigerian investor must look for yields higher than that because the present inflation rate is at 20.8%, a 17-year high. However, it is…
Following the announcement of the sale of Polaris Bank Limited earlier today, there have been mixed reactions from experts and stakeholders. As expected, some minority shareholders have frowned at the development, describing it as ‘an illegality’, for which they said they are prepared to seek redress in court. In case you missed the details, the Central Bank of Nigeria and AMCON announced the completion of the sale of Polaris Bank’s entire shares to Strategic Capital Investment Limited (SCIL). The apex bank said SCIL paid the upfront transaction fee of N50 billion, and in accepting the terms will repay fully the sum of N1.305 trillion…
Top Nigerian tech entrepreneurs, including the founder and CEO of MainOne, Funke Opeke, were among the 447 personalities honoured by the federal government on Tuesday. The CEO of Flutterwave, Gbenga Agboola, co-founder of Paystack, Ezra Olubi, and co-founder and General Partner at Future Africa, Iyinoluwa Aboyeji were also honoured. While Opeke was awarded Member of the Order of the Niger (MON), Agboola, Olubi, and Aboyeji were honoured with the Officer of the Order of the Niger (OON) recognition. The awards were presented to the recipients by President Muhammadu Buhari at an event held at the International Conference Centre, Abuja. Who they are Funke Opeke is…
The United States has returned 23 stolen Benin Bronzes to Nigeria through the Smithsonian National Museum of African Art, the National Gallery of Art, and the Rhode Island School of Design. This was disclosed during the handover ceremony by Nigeria’s information minister in Washington DC on Tuesday. He said that he will soon launch an international traveling exhibition with the artifacts being repatriated The Benin Bronzes were looted during the British Empire invasion of Benin in 1897. Countries, including Germany, are in the process of repatriating over 1000 to Nigeria. The minister of information and culture, Alhaji Lai Mohammed, commended the United…