In the first half of 2023, the nine oil-producing states in Nigeria experienced a significant boost in their finances, thanks to a substantial increase in the 13% oil derivatives share from the federal government. During this period, they collectively received a staggering sum of N544.9 billion, representing a notable surge of 44.2% when compared to the N377.9 billion allocated in the corresponding period of 2022. This financial windfall, however, coincided with an alarming rise in the states’ debt profiles, underscoring the paradox of mounting debt amid a challenging fiscal environment. This comprehensive analysis is derived from a study conducted by…
Author: Temitope N.
On Thursday, October 12, Nigeria’s Minister for Gas, Ekperikpe Ekpo, issued a strong call to action to the contractors involved in the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, urging them to ensure the project’s readiness by July or August 2024. This significant development was communicated via a statement shared on the minister’s official Twitter account. Minister Ekperikpe Ekpo, who personally inspected the construction site during his tour, expressed his concerns about the sluggish pace of work on the project. In particular, he sought answers from Oilserve Limited, the contractor responsible for handling the first segment of this monumental undertaking, regarding the…
The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has achieved a significant milestone by granting its first petroleum exploration license under the Petroleum Industry Act (PIA) of 2021. This groundbreaking development, reported by InfoStride News on October 12, marks a crucial step in the implementation of the PIA and demonstrates the government’s commitment to fostering growth and investment in the Nigerian oil and gas sector. The inaugural Petroleum Exploration License was awarded to TGS-PetroData Offshore Services Limited, a company that has been actively involved in geophysical survey projects. The issuance of this license aligns with the provisions…
In 2022, the Nigerian Federal Government grappled with a significant fiscal crisis, concluding the year with a staggering fiscal deficit of N7.5 trillion, which amounted to 129% of the actual revenue collected. Initially, the government had set a revenue target of N9 trillion, with a projected deficit of N5.2 trillion. This fiscal conundrum comes to light through data extracted from the 2022 budget implementation report released by the Budget Office. The surging fiscal deficit underlines the country’s ongoing fiscal challenge as it strives to balance its budget effectively. Analyzing the Data As per the budget office’s data, the federal government’s…
The exchange rate dynamics in Nigeria have witnessed a disconcerting trend in recent times, with the naira consistently losing ground against the US dollar. This depreciation has been exacerbated by the persistent disparity between the official and parallel markets. As of the latest reports obtained from InfoStride News, the exchange rate has plunged to N1,040 per dollar on the parallel market, primarily due to the unrelenting demand for foreign exchange outstripping its supply. Forex traders interviewed by InfoStride News disclosed that the quotes for inflow transactions currently fluctuate within the range of N1,035 to N1,045 per dollar. This range is…
In Nigeria, the official foreign exchange market has been grappling with a significant challenge—struggling to attain a daily forex turnover exceeding the $300 million threshold, a level last observed during the initial phases of forex unification. This lackluster performance serves as a stark indicator of the waning interest that forex traders have shown in Nigeria’s official exchange rate market. Upon conducting a meticulous analysis, it becomes evident that the average daily turnover in the Investor and Exporter (I&E) window, where official forex transactions transpire, has lingered just slightly above the $100 million mark since the inception of the exchange rate…
In a significant development, institutional investors hailing from the United States, gathered under the banner of the Institutional Investor Network, have expressed a keen interest in expanding their involvement in the Nigerian capital market. This endeavor reflects a promising avenue for enhanced cooperation and investment between the United States and Nigeria. The endeavor was the focus of a substantive discussion, spearheaded by the Nigerian Exchange Limited (NGX), and was facilitated by Chapel Hill Denham, with the delegation from the United States composed of prominent entities such as the United States Agency for International Development (USAID), Prosper Africa, and Power Africa.…
The dollar exhibited relative stability but remained close to a two-week low on Thursday, largely influenced by the Federal Reserve’s cautious approach, as investors eagerly awaited crucial data regarding US inflation. As the dollar’s dynamics continue to be a focal point of global financial markets, the naira faced challenges in the parallel market due to persistently high demand exceeding the available supply. Forex traders were seen trading the naira at N1045/$ against the dollar, clearly indicating growing scarcity. This recent downward trend in the naira’s value against the US dollar has been a significant cause for concern. Since the mid-June…
The Central Bank of Nigeria (CBN) has taken a significant step in revising its policies and regulations concerning foreign exchange by lifting the ban on 43 items that were previously restricted under the leadership of Godwin Emefiele. The announcement came through a circular issued by the apex bank on October 12, 2023, signifying a shift in the CBN’s approach to the country’s forex market. In its circular, the CBN emphasized its commitment to a market-driven exchange rate system, championing the ‘Willing Buyer – Willing Seller’ principle. This change in approach signals a fundamental shift from the previous era, which was…
The Purchasing Managers’ Index (PMI) is an invaluable economic indicator, offering crucial insights into the economic well-being of Nigeria’s manufacturing and services sectors. In September 2023, Nigeria’s overall PMI registered at 51.1 points, surpassing the crucial 50.0-point threshold. This figure represented a notable 90 basis points (bps) increase from the previous month, which saw the PMI at a five-month low of 50.2 in August 2023. The September uptick in PMI was accompanied by a modest rise in business activities, marking the sixth consecutive month of growth in new orders. This growth in business activity can be attributed, at least in…
Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has raised concerns about the escalating conflict between Israel and Palestine, describing it as a new factor casting a shadow over the global economy. She made these comments during a press conference at the ongoing World Bank/IMF summit held in Marakesh, Morocco. Georgieva’s remarks underscore the potential economic implications of the conflict, especially in relation to oil markets and their influence on the broader international financial landscape. She emphasized the significance of closely monitoring the evolving situation and its specific impact on oil markets. “In terms of economic impact, we…
Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has unveiled a promising outlook for the economic policies proposed by President Bola Tinubu’s administration. According to Cardoso, these policies have the potential to propel Nigeria’s Gross Domestic Product (GDP) to an impressive $1 trillion within the span of eight years. This proclamation, made on October 12, 2023, while Cardoso was in Marrakesh, Western Morocco, during the 2023 World Bank/IMF Annual Meetings, is undoubtedly a bold vision for the nation’s economic future. In his address, Cardoso emphasized that the CBN is committed to aligning its focus with the broader…
A bill with the potential to significantly alter the landscape of retirement within the armed forces has achieved a noteworthy milestone by successfully passing its second reading in the House of Representatives. Co-sponsored by Gaza Gbefwi, a legislator representing Nasarawa, and supported by seven other lawmakers, this proposed legislation aims to elevate the retirement age for members of the armed forces in Nigeria. Specifically, it seeks to raise the retirement age from 60 to 65 and extend the number of years of service from 35 to 40, marking a significant shift in the established norms governing military service. This legislative…
Capt. Ibrahim Mshelia, the Chief Executive Officer of West Link Airlines, a charter operator, has shared his perspective on civil aviation regulations in Nigeria, emphasizing their dual nature of being both progressive and limiting. In a conversation with our correspondent in Lagos, he discussed how these regulations, coupled with multiple charges imposed by the Federal Government, have adversely impacted the growth and sustainability of the Nigerian airline industry. Mshelia’s insights highlight the complex challenges faced by indigenous airlines and underscore the need for a more balanced and supportive regulatory environment. Mshelia began by acknowledging that the regulatory framework in Nigeria is,…
The Minister of Information and National Orientation, Mohammed Idris, has expressed the view that President Bola Tinubu’s administration is highly supportive of media freedom. He made these remarks during a visit to the Nigeria Television Authority (NTA) headquarters in Abuja on Tuesday. In his statement, Minister Idris emphasized the importance of adhering to the guidelines set forth by regulatory authorities for all media owners. He noted that the Nigerian press enjoys a high degree of freedom, allowing individuals to establish radio stations, television channels, or newspapers as long as they operate within the boundaries of rules and regulations stipulated by…
The Lagos State Government has officially announced its plans to temporarily suspend train services on the newly inaugurated Lagos Rail Mass Transit (LRMT) Blue Line for a brief period. This suspension is scheduled for Saturday, October 14, and Sunday, October 15, and is primarily intended to facilitate the transition from locomotive-powered operations to electric power. The decision to briefly close the Blue Rail Line is part of a strategic effort to significantly increase the number of train trips, thereby enhancing the capacity and efficiency of the rail system. Starting on Monday, October 16, 2023, the train trips on the Blue…
A new report released by Standard Chartered has cast a hopeful light on the future of Africa’s trade landscape, with projections that Africa’s total export could potentially reach a significant milestone of $1 trillion. This report, titled “Future of Trade: Africa Report,” delves into the prospects for trade within the African continent and provides insights into the role of the African Continental Free Trade Area (AfCFTA) as a pivotal driver for bolstering intra-African trade. The report outlines that Africa’s overall exports are poised to ascend to $952 billion by 2035. The full enactment of the AfCFTA presents a promising opportunity…
Between September 30 and October 6, a disturbing total of 128 crude oil theft incidents sent shockwaves throughout the oil-producing regions of the Niger Delta, painting a grim picture of ongoing illicit activities that threaten both the environment and the economy. This revelation stems from a comprehensive report featured in the weekly “Energy and You” series, a production by the Nigerian National Petroleum Company Limited (NNPCL) , and broadcast on the NTA News Network. In the span of just one week, the specific time frame in question, a plethora of illicit activities tarnished the oil sector’s integrity. The tally included…
The International Finance Corporation (IFC) and Morocco’s OCP have finalized an agreement securing a $106 million loan for the development of two solar plants in Morocco, further advancing OCP’s efforts to boost the production of low-carbon fertilizers in the country. On October 10, the Office Chérifien des Phosphates (OCP), a Moroccan state-owned enterprise specializing in phosphates and fertilizers, announced a significant partnership with the International Finance Corporation (IFC), marking a significant milestone in their ongoing efforts to support sustainable energy projects in Morocco. This financial injection aligns with OCP’s overarching mission to increase the production of low-carbon fertilizers in the…
Despite the assurance of a price reduction, the cost of BUA Cement has not seen a significant change and continues to retail at the old price range of between N5,300 and N5,500 in Lagos, as per findings by Infostride News. The announcement of the price reduction was made by Abdul Samad Rabiu, the Group Chairman of BUA Cement Plc. This announcement came following a meeting with President Bola Tinubu at the State House, Abuja, on September 15, 2023. Despite the expected implementation date being one week ago, the revised price has yet to be realized, with various cement retailers and…