The president of the African Development Bank (AfDB), Akinwumi Adesina, has said Nigeria needs help from international institutions in tackling its debt burden. The statement is coming barely 24 hours after President Muhammadu Buhari called for debt cancellation for developing countries that are facing fiscal and liquidity challenges at the 77th session of the United Nations General Assembly (UNGA). This was made known by Adesina while speaking at the Nigeria International Economic Partnership Forum in New York on Thursday, where he said financing was critical to solving Nigeria’s development challenges. Adesina acknowledged that several countries, especially in Africa, where the debt…
Author: Temitope N.
President Muhammadu Buhari has stated that the Nigerian economy is ripe for increased investment, hinting that private capital flows into Nigeria, consisting mainly of Foreign Direct Investment, have slowed, hindering the financing of much-needed infrastructure and natural resource access projects. Buhari disclosed this at the Nigeria International Economic Partnership Forum held on the margins of the 77th UN General Assembly in New York. The summit was held to discuss the possibility of attracting more investors to Nigeria. Buhari expressed delight that investments in improving security are yielding good dividends, lauding the Nigerian military for making significant progress in the fight against insecurity…
The Federation Account Allocation Committee (FAAC) shared a total sum of N673.137 billion in August 2022 from the Federation Account Revenue to the federal government, states and local government councils. This was contained in a communiqué issued at the end of the Federation Account Allocation Committee (FAAC) meeting for September 2022, signed by Henshaw Ogubike, director, Information, Press and Public Relations. The N673.137 billion total distributable revenue comprised distributable statutory revenue of N437.871 billion, distributable Value Added Tax (VAT) revenue of N215.266 billion and augmentation of N20.000 billion from the Non-Oil Excess Revenue. In August 2022, the total deductions for…
President Muhammadu Buhari has inaugurated the Nigeria Integrated National Financing Framework Report on Sustainable Development (NIFF). The report was launched on the margins of the 77th United Nations General Assembly in New York, the United States of America, on Friday. Buhari stated that the Integrated National Financing Framework was developed to map out a much-needed sustainable financing plan for Nigeria to deliver on its commitment to the Sustainable Development Goals and our National Development aspirations. President Buhari stated that for Nigeria and indeed Africa as a whole, achieving the SDGs will mean ending poverty and hunger, safeguarding the Nigerian ecosystem and the planet…
The Nigerian equities market closed bearish during the week as the All-Share Index declined by 0.44% in the week ended 16th September 2022. This is following the 0.70% decline recorded in the previous week. This is according to the information contained in the weekly stock market report, released by the Nigerian Exchange Group. The benchmark index, ASI, depreciated by 0.44% from 49,695.12 points recorded as of the end of last week to close the week at 49,475.42 index points, while the market capitalization followed suit to close at N26.686 trillion. This brings the month-to-date performance of the Nigerian stock market to…
The market capitalization of the top five banks, referred to as the Tier-1 banks or FUGAZ, depreciated by 3.05% to close at N2.16 trillion as at 9th of September, 2022, as investors in these banks lost a total of N50.82 billion during the trading week. After 5 trading days of the week, 4 of the 5 tier-1 Nigerian banks suffered negative market sentiments, with ACCESS Bank leading the losers while GTCO remain unchanged and no bank enjoyed positive sentiment. According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks dipped to N2.09 trillion to…
The Central Bank of Nigeria sold $4.86 billion worth of foreign exchange to authorities dealers in the first quarter of 2022. This is indicative of a 5.8% decrease, compared with the previous quarter. This was disclosed in the Central Bank’s latest economic and statistical report for the first quarter of 2022. The Central bank’s sale of foreign exchange is done to stabilize the Naira, however, the stability of the official exchange rate comes at a cost to the reserves as the central bank sells foreign exchange in the official window from its external reserves. Despite multiple interventions by the CBN…
First Bank of Nigeria has informed its customers that the Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) will now be transferred to the FirstBank Travel Card. This was disclosed in an email seen by Nairametrics titled “Updates on FX Purchase”. The bank further indicated that PTA/BTA sales are limited to two quarters per year and that only applicants with approved Form A are eligible for payout. The Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) are ways for Nigerians to benefit from the official exchange rate, which trades in the N435/$ range. However, Nairametrics reported earlier that…
The exchange rate between the naira and the US dollar stood at N706/$1 on Monday, 12th September 2022 morning, a 0.28% appreciation compared to N708/$1 recorded on Friday, last week. This is according to information obtained from black market operators. The local currency declined marginally against the US dollar to close at N436.33/$1 at the official exchange rate market (I&E window), representing a 0.002% depreciation compared to N436.32/$1 recorded in the previous trading session. Meanwhile, a total of $66.02 million was traded at the official market on Friday, which is 76.05% higher than the $37.5 million that exchanged hands on…
Nigerian banks‘ borrowings from the Central Bank of Nigeria’s Standing Lending Facility (SLF) increased to N737.05 billion in May 2022, indicative of an N124.62 billion uptick. This is according to the CBN’s latest monthly economic report . The CBN Standing Lending Facility (SLF) activities increased by 20.4% to N737.05 billion in May 2022 compared to N612.43 billion in the end-April 2022. The report also noted that consumer credit outstanding grew by 0.8% to N2,344.10 billion at the end-May, from N2,325.97 billion in the preceding month. The apex bank said “the total standing lending facility increased considerably by 20.4% to N737.05 billion relative…
The World Bank, the Global Energy Alliance for People and Planet (GEAPP), and the African Development Bank (AfDB) were just a few of the organizations that were present during Nigeria’s virtual launch of its Energy Transition Plan in August 2022. The event presented a roadmap for Nigeria’s journey to net zero by 2060. Net Zero Climate defines net zero as a state in which the greenhouse gases going into the atmosphere are balanced by the removal of such gases out of the atmosphere. Nigeria’s Energy Transition Plan will need $410 billion for implementation across the country The World Bank and Sun Africa…
Nigeria recorded a total foreign trade of N12.84 trillion in the second quarter of 2022, representing a 32.2% increase compared to the corresponding period of 2021 (N9.71 trillion). However, when compared to the previous quarter, it decreased marginally by 1.2% from N13 trillion). This is contained in the recent report released by the National Bureau of Statistics (NBS). According to the report, the international trade balance surged to N1.97 trillion, the highest in four years. The favorable trade balance can be attributed to the significant increase in export value compared to the import bill. Specifically, Nigeria earned N7.41 trillion from…
Nigeria’s Net Foreign Assets (NFA) dropped to N4.8 trillion in July 2022 the largest month-on-month drop since 2019 and the lowest level since 2015. The data was obtained from the website of the Central Bank of Nigeria (CBN) which tracks Nigeria’s money supply since 1960. The Net Foreign Assets represents the difference between the foreign assets owned by the central bank and the banking system and the liabilities respectively. A positive Net Foreign Assets indicates the central bank and commercial banks have more foreign assets (liquid) when compared to foreign liabilities. In the month of July, Nigeria’s net foreign assets…
HabariPay, the fintech subsidiary of Guaranty Trust Holding Co Plc, recorded N447.8 million revenue in the first six months 2022. This was revealed by the company in its half-year financial results released this week. GTCO further disclosed that the digital payment subsidiary incurred N70.6 million in operating expenses in the period. The birth of HabariPay started with GTBank’s launch of Habari mobile app in 2018 as a digital platform for music, shopping, lifestyle content and others. GTCO later at the beginning of June secured the final approval from the Central Bank of Nigeria (CBN) for HabariPay Limited as a wholly-owned…
Since the Nigerian Bureau of Statistics (NBS) started tracking the real estate and construction sector in Nigeria, we have seen very strong correlations between the performance of Nigeria’s GDP as a whole, and the real estate services and construction sector. Typically, as in most economies, the real estate services and construction sector amplify the performance of the overall economy. Particularly, we have seen these sectors perform much better when the economy is booming and also dropping significantly during periods of recession. Since Q2:2021, Nigeria’s GDP had dropped 13% Quarter-on-Quarter, and because it has a different impact on Real Estate and…
The naira fell to a record low of N436/$1 at the official Investors and Exporters window, representing a 0.29% depreciation compared to N434.75/$1 recorded in the previous trading session. A total of $63.05 million in FX value was traded at the official market, a 36.8% decline compared to $99.68 million that exchanged hands in the previous trading session. Also, the exchange rate at the cryptocurrency peer-to-peer FX market dipped by 0.22% to stand at N706.54/$1 on Wednesday morning, as against N704.99/$1 that it traded as of the same time the previous day. Naira on the other hand appreciated slightly by…
A bleak economic outlook and the most recent surge in the value of the US dollar have caused the pound to decline to its lowest point in over four decades. Sterling dropped as much as 1% to $1.141, a low last reached by Margaret Thatcher’s government in 1985. The economic picture is difficult, just like then. Two concerns that Britain is battling are double-digit inflation and the potential for a protracted economic downturn. The Bank of England has issued a more than one-year recession warning. The Plaza Accord, a deal to devalue the US currency, was signed by the world’s…
Activities on the Nigerian Exchange Limited (NGX) sustained a southward trajectory following losses recorded by blue chip firms. Checks by Nairametrics showed that the gains recorded in the shares of Chams Plc, FCMB Plc and other blue-chip stocks dragged market capitalisation to further lose N24 billion or 0.09%, accumulating days of a bearish trend. Consequently, the local Bourse (NGX) closed negative amidst sell pressure as bears dominated proceedings on the trading floor. The All-share Index (ASI) depreciated by 0.09% or 45.19 basis points to close at 49,559.73 index points as against 49,644.93 index point the previous day. In the same…
The Finance and Insurance sector grew at 29.90% as a whole in nominal terms year-on-year in the second quarter of 2022. This is according to the recent GDP report released by the National Bureau of Statistics. In particular, the growth rate of Financial Institutions was recorded at 31.63% and 17.28% growth rate was recorded for Insurance. The Finance and Insurance Sector consists of the two subsectors, Financial Institutions and Insurance, which accounted for 89.10% and 10.90% of the sector respectively in real terms in Q2 2022. The overall rate was higher than that of Q2 2021 by 31.76% points and lower by 2.39% points than the preceding…
Information and Communications Technology (ICT) contributed 18.44% to Nigeria’s real Gross Domestic Product (GDP) in the second quarter of 2022. This is higher than its contribution in the same quarter of the previous year in which it represented 17.92% and higher than the preceding quarter in which it represented 16.20%. The National Bureau of Statistics (NBS) disclosed this in the Q2 GDP statistics released on Friday. According to NBS, the ICT sector is composed of four activities – Telecommunications and Information Services; Publishing; Motion Picture, Sound Recording, and Music Production; and Broadcasting. The sector’s growth was driven largely by activities in the telecommunications…