Financial experts have sounded a warning to Nigerian companies seeking foreign-denominated loans to have a rethink as global economies responded to hyperinflation with aggressive monetary policy tightening. As the impact of the Russia-Ukraine war continues to fuel inflation globally in a way not seen in decades developing nations are responding by jacking up interest rates. The United States Federal Reserve recently raised its target interest rate by three-quarters of a percentage point to combat a disruptive rise in inflation, while also forecasting a weakening economy and growing unemployment in the months ahead. Economic analysts are expressing concerns that the hike…
Author: Temitope Nlewemchi
Foreign exchange crises, high inflation, and fiscal pressures generated by fuel subsidies, according to the World Bank, distort the benefits of a growing non-oil sector and high oil prices. Nigeria’s growth prospects have improved for the next three years, mainly to a stronger non-oil recovery and higher global oil prices. However, Nigeria’s macroeconomic framework has eroded, making the country more vulnerable to global and domestic shocks. This was disclosed by the World bank in a document titled ‘Nigeria Development Update (June 2022): The Continuing Urgency of Business Unusual.’ The World Bank stated that the weakening of Nigeria’s macroeconomic framework is mainly…
A substantial rise in energy prices, which was spurred in part by Russia’s war in Ukraine, has driven inflation in the 19 nations that use the euro currency to a record high in June. Headline inflation came in at 8.6% (year-on-year) for last month, according to preliminary figures from Europe’s statistics office Eurostat released Friday. Since last year, inflation has broken monthly records, highlighting how the war’s impact on the world’s energy supplies is raising living expenses for the 343 million people living in the eurozone. Energy prices rocketed 41.9%, and prices for food, alcohol and tobacco were up 8.9%, both faster…
The President of the Confederation of African Football (CAF), Patrice Motsepe has announced that the Africa Women Cup of Nations (AWCON) prize money has been increased by 150% to $500,000. He stated this at the opening ceremony of the 2022 Africa Women Cup of Nations (AWCON) at the Prince Moulay Abdellah Stadium, Morocco. Motsepe said, “We are bringing this competition for the first time in Morocco and we have increased the number of nations to twelve (12) and we have also increased the prize money for the women competition by a hundred and fifty percent (150%), so the winning nation will…
The Nigeria Customs Service (NCS), Ogun 1 Area Command, stated that it seized N1.3 billion worth of goods between May to June around Ogun and its environs. This was disclosed by the Area Comptroller, Bamidele Makinde, at a press briefing on Monday in Idiroko, Ogun based on NAN. He stated that N1,290,108,608.00 was the total estimated Duty Paid Value (DPV) of the seizures made between May and June. Bamidele Makinde stated that during routine patrols, members of the command seized illegal drugs and narcotics in a cooperative effort with other state security organizations. Makinde added that during its anti-smuggling activities between…
Ayodele Hamzat started with Foxygreen in July 2020, enrolling in a short-term investment plan involving catfish breeding. According to information on its Facebook Page, Foxygreen is an agrotech company providing agro-based investment opportunities to individuals and corporations as well as livestock, warehousing, and logistic services. This was at the peak of the global pandemic that had halted commerce, grounded global travel, and threatened to upend the trade of physical goods and services. Yet, Foxygreen which also operated as a multipurpose cooperative partnership, was able to deliver, paying back capital plus interest to Hamzat. This was all he needed to embark on a…
The Zamfara State Governor, Mohammed Matawalle, has directed residents of the state, particularly farmers to acquire guns to defend themselves against bandits and terrorists who appear to be ravaging the state. The directive follows what the state government describes as the deteriorating security situation in parts of the state. According to a statement by the Zamfara State Commissioner for Information, Mr Ibrahim Magaji Dosara, issued to journalists on Sunday, the governor has ordered the state commissioner of police to issue licences to residents who are willing and qualified to obtain guns to defend themselves against the marauding terrorists. Matawalle in…
The National Agency for Food and Drug Administration and Control (NAFDAC) says it received safety information from the European Rapid Alert System for dangerous non-food products (RAPEX) that a cosmetic product, Placentyne Hair Lotion, has been banned. This disclosure is contained in a public alert with No. 0033/2022, and titled, ‘European Rapid Alert System for Dangerous Non-Food Products (RAPEX) Banned Cosmetic Product, Placentyne Hair Lotion’, issued by the management of the agency. NAFDAC said. ‘’The product is sold in a 12 ampoules x 10ml cardboard box manufactured by an Italian company, Linea Italiana di Benazzi Anna & SAS with a…
Bread makers and caterers in Nigeria are set to embark on a two-week strike from July 13, 2022, due to a hike in the prices of baking materials. This was disclosed by the Association of Master Bakers and Caterers of Nigeria (AMBCN) via a communique issued, which was signed by the association’s executives, led by Mansur Umar, its national president, after a meeting of its national executive council in Abuja. According to the statement, the group will embark on the strike if the federal government does not give the necessary attention to their demands. It stated, “Increase in prices of…
First City Monument Bank (FCMB), through EasyAgents, its agency banking network and other channels, has successfully onboarded and empowered one million financially excluded Nigerians, ensuring they have a better and more sustainable future through access to financial services. As part of its financial inclusion programme, the Bank has provided microloans valued at N40 billion to over 300,000 beneficiaries comprising 200,000 women traders across the country who have accessed over US$51.28 million (N28.7 billion) of the total loan sum. Committing to affordable and sustainable financial services for unbanked and underbanked Nigerians, the Managing Director of FCMB, Mrs Yemisi Edun, said: “We are proud of our…
The domestic debt stock of the 36 states in Nigeria, including the federal capital territory rose to N4.84 trillion in the first quarter of 2022, representing an 8.6% increase compared to N4.46 trillion recorded as of the previous quarter. This is according to information released by the Debt Management Office (DMO). On a year-on-year basis, the debt stocks of the states increased by 17.5% compared to N4.12 trillion recorded in the corresponding period of 2021. A further look at the data shows that Lagos, Ogun, and Rivers States led the list of states with the highest domestic debt stock as…
World Bank has said that inflation in Nigeria, which it stated is already one of the highest in the world before the war in Ukraine, is likely to push an additional one million Nigerians into poverty by the end of 2022. This was disclosed by the global financial institution in its latest Nigeria Development Update (NDU) report, titled, “The Continuing Urgency of Business Unusual”, which was released on Tuesday. The report, which was shared with infostride, stated that the additional 1 million is different from the 6 million Nigerians that were already predicted to fall into poverty this year because of the rise in…
Nigeria’s inflation rose to its highest level in 11 months, rising from 16.82% recorded in April 2022 to 17.71%. This is according to the recently released Consumer Price Index report, released by the National Bureau of Statistics (NBS). The consumer price index, which measures the rate of inflation rose by 17.71% year-on-year in May 2022, which is 0.89% points higher than the 16.82% recorded in the previous month (April 2022). On a month-on-month basis, the headline index increased by 1.78% in May 2022, compared to the 1.76% increase recorded in the previous month. Similarly, the urban inflation rate increased to…
The International Monetary Fund (IMF) has stated that improving trade balance is having a limited impact on Foreign Exchange (FX) strains with the exchange rate premiums in the parallel market staying in the 35-40% range since October 2021. This was disclosed in the IMF staff meetings with the Nigerian authorities from June 6-10, 2022, to discuss recent economic and financial developments and the economic outlook for the country. Yesterday, the exchange rate between the naira and the US dollar closed at N420/$1 at the Investors and Exporters (I&E) window. However, the black market maintains a wide premium to closed at…
A London high court on Tuesday ruled in favour of JPMorgan Chase & Co. in a $1.7billion suit over its role in the disputed 2011 Malabo oil deal. Nigeria alleges that JP Morgan was “grossly negligent” in its decision to transfer funds paid by oil giants Shell and Eni into an escrow account controlled by a former Nigerian oil minister, Dan Etete. The court held that there was not sufficient evidence to prove that the Nigerian government was defrauded in the oil deal. In 2017, Nigeria had instituted a legal action against American banking and financial service group, JP Morgan…
The Shell Petroleum Development Company (SPDC) has asked the Federal High Court in Yenagoa to stay proceeding in the N700 billion oil spill compensation suit filed by members of Aghoro I Community in Bayelsa. It made the request on Wednesday while challenging the jurisdiction of the Court to hear the suit. The people of Aghoro community had sued Shell Petroleum Development Company (SPDC) over the May 17, 2018 oil leak from the oil firm’s Trans Ramos Pipeline. At the resumed hearing, SPDC’s Counsel, Mr Michael Amadi informed the court that his client is challenging the jurisdiction of the court to…
Justice Mahmood Namtari of the National Industrial Court, Abuja Division has dismissed a defamation suit filed by Mr Godwin Akpan against Mobil Producing Nigeria. The judge dismissed the suit on Wednesday for lacking in merit. He held that a servant who claims a wrongful termination of employment must show in what manner the wrong was done. The court declared that the termination of Mr Akpan’s employment by the first defendant was wrongful. Consequently, the court awarded damages. The claimant, (Mr Akpan) told the court that he was offered employment as a Laundryman by Gins Global Ltd, who was a labour…
Justice Inyang Ekwo of the Federal High Court, Abuja Division has adjourned to September 26, a suit filed by CEC Africa Investment Limited and KANN utility company against the Attorney General of the Federation and others over the take over of Abuja Electricity Distribution Company (AEDC). The judge made the adjournment sequel to an application by counsel to the plaintiffs seeking to adjourn to enable them explore more settlement options. The Plaintiffs had sought an order of the court restraining the AGF and others from interfering in the operations of AEDC. The plaintiffs had approached the court on December 8,…
The House of Representatives has asked the Independent National Electoral Commission (INEC), to extend the voter registration exercise by 60 days. The house gave the directive following the adoption of a motion moved by Ben Kalu (APC, Abia) during plenary on Wednesday. June 30 is the scheduled deadline for the closing of the Continuous Voter Registration (CVR) exercise. While moving the motion, Mr Kalu said the extension will enable more eligible Nigerians to register. Mr Kalu noted that the decision to extend the voters’ registration was in line with the provisions of the Electoral Act, 2022, which required INEC to…
Nigeria’s presidential candidates have kept mute concerning Nigeria’s galloping inflation rate, which hit 17.71% for the month of May 2022. This is according to a recent report released by the National Bureau of Statistics (NBS). The frontline presidential candidates have remained silent on the issue of inflation despite being at the forefront of most conversations relating to the state of the Nigerian economy. A cursory look at the Twitter handles of Atiku Abubakar, Peter Obi, Ahmed Tinubu, Rabiu Kwankwaso, and Omoyele Sowore, revealed no comments concerning the record-high inflation recorded in May, as Nigeria continues to suffer significant blowback from…