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…
Author: Temitope N.
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…
Nigeria’s high inflation would further reduce the value of the Naira as imported products become more expensive. This was revealed in the personal statement of Dr Mo Omamegbe, a member of the CBN’s Monetary Policy Committee as seen in the communique of the meeting held on Monday 18th and Tuesday 19th July 2022. Despite multiple interest rate hikes by the CBN, inflation continues to rise. Nigeria’s current inflation rate for July 2022 rose to a 17-year high of 19.64% from 18.6% recorded in the previous month of June 2022. Dr. Omamegbe that a rise in prices would increase the exchange…
Nigeria attracted a sum of $1.54 billion as capital inflows in the second quarter of 2022, an increase of 75.34% compared to $875.62 million recorded in the corresponding period of 2021. This is, however, 2.4% lower than the $1.57 billion received in the preceding quarter. This is according to the recently released capital importation report by the National Bureau of Statistics (NBS). The breakdown of the report showed that the largest amount was received through portfolio investment at $757.32 million, which accounted for 49.33% of the total inflows, followed by other investments with $630.87 million, representing 41.09%, while foreign direct…
Nigeria’s external reserves fell by 3.6% in August 2022, to $39.024 billion, down from $40.520 billion on December 31, 2021. Pressure on the Nigerian foreign exchange reserves has forced it to shed a whopping $1.496 billion Year to date, despite the surge in crude oil prices. Despite the apex bank’s interventions in the forex market, the Nigerian economy is starved of foreign exchange as currency traders continue to complain about restricted forex liquidity, causing the local currency to depreciate more in the FX market. Although there are a number of CBN policies and programs aimed at encouraging inflows, Nigeria’s inability…
The market capitalization of the top five banks, referred to as the Tier-1 banks or FUGAZ, depreciated by 0.66% to close at N2.20 trillion as of 26th of August, 2022, as investors in these banks lost a total of N14.66 billion during the trading week. After 5 trading days of the week, 3 of the 5 tier-1 Nigerian banks suffered negative market sentiments, with Access Bank Plc leading the losers while only UBA and Zenith bank enjoyed the positive sentiment According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks dips to N2.20 trillion to depreciate by…
The combined market capitalization of stocks worth over one trillion (SWOOTs) appreciated by 1.30% to close at N19.75 trillion from N19.50 trillion the previous week, reflecting a gain of N254.39 billion. Stocks included in this classification are AIRTELAFRICA, BUA CEMENT, DANGOTE CEMENT, NESTLE, BUAFOODS and MTNN Plc. Stock Performance MTNN Plc – N200.00 MTNN Plc’s share price, at the end of the trading week, appreciated by 2.04% to close at N200.00 per share, taking its market capitalization to N4.07 trillion at the end of the trading sessions of the week. As a competitor of Airtel Nig Plc, MTN’s total market…
Investors of Seplat Energy Plc recorded a loss of about N70.56 billion from trading in the shares of the company in the last five days following sustained sell pressure witnessed on shares of some blue-chip firms quoted on the Nigerian Exchange (NGX). The sell-offs are on the back of cautious trading ahead of the 2023 general elections and global investment constraints following the Russian-Ukraine crisis, as well as insecurity challenges that continue to hamper food and crude oil production in Nigeria. The oil firm’s stock lost by 8.44% to date to N1,300.00 per share from N1,419.90 it opened for trading…
Access Holdings Plc has announced that its subsidiary, Access Bank Plc has completed the divestment of its entire equity interest in Access Pension Fund Custodian Limited to First Pension Custodian Nigeria Limited, a subsidiary of First Bank of Nigeria Limited. The Group released a statement signed by the company secretary, Sunday Ekwochi, and filed with the Nigerian Exchange Limited (NGX). According to the statement, the transaction has received the full approvals of the relevant regulatory agencies. Access Holdings Plc on May 18, 2022, announced plans by Access Bank to divest from its pension custody subsidiary. According to the statement, the…
The Miners Association of Nigeria has called on the Nigerian Government to check the activities of Chinese miners “scavenging” for Lithium. This was disclosed by Mr. Dele Ayanleke, the National Secretary of the association in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja. Lithium is a mineral used in making batteries and has witnessed a price rally over the last few years due to rising electronic vehicle demand which needs lithium to make its most expensive parts- the car batteries. What the miners are saying Ayankele revealed that the rate at which the Chinese had…
Bitcoin dug in following its Thursday climb back above the psychologically significant $20K level. After a month to forget in the cryptocurrency markets, the largest cryptocurrency by market value was recently trading at $20.1K, up around a percentage point over the previous day as investors looked ahead anxiously. The price of the leading cryptocurrency dropped by nearly 20% in August and more than 13% since the middle of the month, when a surge fueled by delusionary expectations of a return to more moderate monetary policy (since dashed by Federal Reserve Chair Jerome Powell in Jackson Hole, Wyoming) caused the price…
Flutterwave, Africa’s leading payments technology company has been granted a Switching and Processing License by the Central Bank of Nigeria (CBN). The license, which is widely regarded as CBN’s most valuable payments processing license allows Flutterwave to offer transaction switching and card processing services to customers. Others include non-bank acquiring, agency banking, and payment gateway services. The Switching and Processing license allows Flutterwave to enable transactions between banks, fintech, and other financial institutions. The Company is also able to process card transactions, participate in agency banking and offer various payment services without any intermediary. Before this license, Flutterwave operated with…