The Central Bank of Nigeria (CBN) has reported a decline in the country’s money supply, which fell to N110.3 trillion in February 2024. This marks a reduction from previous months, reflecting the impact of recent monetary policies aimed at stabilizing the economy and curbing inflationary pressures. The drop in money supply follows the CBN’s tightened monetary measures, including increased interest rates and liquidity control strategies. These policies were implemented to manage inflation, strengthen the naira, and ensure economic stability amid fluctuating forex reserves and rising consumer prices. Impact of the Decline in Money Supply A contraction in money supply generally…
Author: Temitope Nlewemchi
The Ajaokuta Steel Company, a long-dormant industrial giant in Nigeria’s manufacturing history, is once again in the spotlight for financial irregularities—this time over a staggering ₦5.6 billion electricity debt. The steel plant, which has remained largely non-operational for decades, is reportedly saddled with accumulated electricity bills despite producing no steel or engaging in commercial activities on a scale that would justify such a massive liability. This revelation has reignited debates about the management and oversight of the company, which many regard as one of Nigeria’s most ambitious yet failed industrial projects. Concerns are growing over how a facility that has…
Nigeria’s public debt-to-GDP ratio has dropped to 39.4% following the recent rebasing of the nation’s Gross Domestic Product (GDP), according to official data from the Debt Management Office (DMO). The revision, which expanded the size of the economy on paper, helped reduce the appearance of the country’s debt burden, even though the total value of public debt remains high. The GDP rebasing exercise, spearheaded by the National Bureau of Statistics (NBS), involved the inclusion of emerging sectors such as digital technology, fintech, entertainment, e-commerce, and informal trade, which had previously been underrepresented in national accounting. With the revised GDP now…
Nigeria’s Monetary Policy Committee (MPC) has chosen to retain the benchmark interest rate at 27.5%, a decision that has elicited mixed reactions among economists, market practitioners, and business stakeholders. This hold reflects an uneasy equilibrium: policymakers are walking a tightrope between high inflation and the risk of stifling economic growth, while observers debate whether the central bank’s measured approach is prudent—or overly cautious. Inflation remains the central concern behind the MPC’s cautious stance. After months of persistent consumer price pressure driven by food insecurity, fuel subsidy removal, and currency devaluation, headline inflation has stubbornly held above 22%. Core inflation—excluding volatile…
PalmPay, Nigeria’s emerging digital banking platform, has garnered considerable acclaim in recent months by securing several high-profile awards, recognizing its disruptive impact on financial inclusion and customer service in the country’s fintech landscape. Since its 2019 launch, the company has steadily expanded both its user base and product suite, cementing its reputation as a leading force in democratizing access to digital financial services. The latest honor bestowed upon PalmPay—the “Most Outstanding Fintech Driving Financial Inclusion” award at the BrandCom Awards 2024—marks a high watermark in the company’s awards calendar. This recognition is seen as a testament to PalmPay’s sustained contribution…
President Bola Tinubu has issued a firm deadline for the implementation of Nigeria’s National Single Window system, directing that it must be fully operational by the first quarter of 2026. The initiative is part of a broader agenda to boost trade efficiency, curb revenue leakages, and modernize Nigeria’s import-export processes. Tinubu’s mandate signals the federal government’s determination to digitize border administration and integrate all relevant agencies under a unified digital platform. The National Single Window (NSW) is designed to serve as a one-stop electronic gateway through which traders, logistics providers, and government agencies can electronically submit all documentation required for…
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has stated that structural inefficiencies are the major obstacles delaying the direct transfer of funds to local government areas (LGAs) across the country. His remarks come in the wake of a Supreme Court ruling reinforcing the autonomy of LGAs and mandating direct financial allocations to them from the Federation Account. Speaking at a policy forum in Abuja, Edun emphasized that the federal government remains committed to the implementation of the court’s ruling. However, he acknowledged that the process requires extensive adjustments to Nigeria’s current public finance system, which…
A spirited rally on the Nigerian Stock Exchange gathered momentum this week, with investors pouring fresh capital into equities and propelling the market’s total value upward by approximately ₦396 billion. The robust surge reflects growing confidence among market participants, fueled by positive corporate earnings, macroeconomic signals, and strategic portfolio repositioning ahead of earnings season. The All-Share Index (ASI) led the charge, registering notable gains from key stocks across the financial, consumer, and industrial sectors. Large-cap banking stocks, particularly those of tier-one institutions, drew significant attention, as did consumer goods manufacturers responding to easing inflation and improving production outlooks. Industrial stocks,…
Airline operators in Nigeria are raising serious concerns over what industry insiders describe as up to $1.3 billion in lost benefits tied to the country’s underperformance in the Single African Air Transport Market (SAATM) initiative. While SAATM promises liberalized skies and increased intra-African traffic, stakeholders argue that Nigeria’s failure to fully engage has left both the aviation sector and broader economy on the sidelines. SAATM, launched by the African Union in 2018, seeks to remove barriers across the continent—such as restrictive bilateral air service agreements—and enable airlines to fly freely between member states. In theory, countries like Nigeria should benefit from…
Deloitte has issued a cautionary analysis suggesting that the European Union’s incoming mandates on sustainable aviation fuels (SAFs) may inadvertently weaken the financial viability of EU airlines. While the initiative aims to reduce carbon emissions and accelerate decarbonization, Deloitte warns that without phased implementation, airlines may face escalating costs that challenge competitiveness and operational stability. According to Deloitte, as the EU pushes for graduated blending targets—requiring increasing percentages of SAFs be used in commercial flights—airlines will incur significantly higher fuel expenses. Unlike conventional jet fuel, SAFs typically cost two to three times more due to limited production scale, feedstock scarcity,…
In a move to revolutionize the future of travel and tourism, industry experts from across Nigeria and abroad are gearing up to showcase groundbreaking innovations in travel technology at an upcoming event designed to boost digital transformation in the sector. The showcase is expected to highlight how new tools, platforms, and services are reshaping the way individuals and businesses plan, book, and experience travel. The event, which is being coordinated by a coalition of travel industry professionals, tech developers, startups, and policy advocates, will bring together a diverse array of stakeholders. These include travel agencies, tourism boards, logistics companies, hospitality…
Nigeria’s equity market recorded a significant boost, gaining N1.83 trillion in just one week as investor confidence strengthened. The bullish trend was driven by increased demand for stocks across key sectors, particularly banking, telecoms, and consumer goods. Market analysts attributed the rally to positive economic indicators, improved corporate earnings, and renewed foreign investor interest. The All-Share Index (ASI) of the Nigerian Exchange (NGX) also posted strong growth, reflecting the overall market optimism. Experts believe that the uptrend could continue if macroeconomic conditions remain stable and corporate performance stays strong. However, they also cautioned that external factors, such as global economic…
In its first monetary policy meeting of the year, the Central Bank of Nigeria (CBN) has decided to retain the Monetary Policy Rate (MPR) at 27.5 percent, signaling its ongoing focus on combating stubborn inflation rather than stimulating growth. The decision was met with mixed reactions from economists, businesses, and consumers, as the economy continues to balance between curbing price pressures and encouraging investment. The CBN Governor, who chaired the Monetary Policy Committee (MPC) meeting, stated that inflation—while showing early signs of moderation—remains high and poses a risk to price stability and purchasing power. Core inflation, excluding volatile items like…
The Nigerian Exchange (NGX) closed Monday’s trading session on a mildly positive note, with the All-Share Index (ASI) recording a slight gain of 0.18%. The performance, though modest, reflected a complex mix of investor sentiments shaped by corporate earnings expectations, macroeconomic conditions, and recent regulatory announcements. At the end of trading, the NGX ASI increased by 179.66 points to settle at 99,665.05 compared to the previous day’s close of 99,485.39. This upward move pushed the market capitalization higher to ₦56.42 trillion from ₦56.32 trillion, indicating a ₦100 billion appreciation in the total value of listed equities. The modest gain was…
The Dangote Petroleum Refinery’s latest plan to handle the distribution of its refined petrol and diesel products directly to retail outlets and large consumers has sparked concern among various stakeholders in Nigeria’s downstream oil sector. The move, which aims to eliminate middlemen and streamline delivery operations, is being welcomed for its efficiency and potential consumer benefits, but industry insiders fear it could lead to significant job losses and unfair market dominance. Under the new arrangement, Dangote is set to begin the nationwide distribution of fuel using its own fleet of 4,000 Compressed Natural Gas (CNG)-powered tankers. These vehicles will deliver…
The Nigeria Customs Service (NCS) has announced a new initiative aimed at streamlining import charges, in what officials describe as a crucial step toward improving efficiency, reducing business costs, and enhancing transparency in the country’s import and export system. The move comes in response to sustained concerns from key stakeholders in the private sector, including manufacturers, importers, and freight forwarders, many of whom have complained about the complexity, duplication, and cost burden of the current tariff structure. At the core of the new reform effort is a plan to simplify Nigeria’s customs charges into a more manageable and legally consistent…
The Chairman of BUA Group, Abdul Samad Rabiu, has said that the recent foreign exchange (FX) reforms introduced in Nigeria have brought an end to the long-standing practice of businesses lobbying the Central Bank of Nigeria (CBN) for access to dollars. Speaking in a recent interview, Rabiu applauded the federal government’s move to unify the FX system, noting that it has created a more equitable environment for all players in the economy, especially the private sector. According to Rabiu, the reforms represent one of the most significant steps in addressing the inefficiencies that have long plagued Nigeria’s foreign exchange regime.…
Businesses across Nigeria are expressing optimism that the upcoming Monetary Policy Committee (MPC) meeting, scheduled for today, will bring about a reduction in interest rates. This sentiment echoes growing expectations that the Central Bank of Nigeria (CBN) may ease borrowing costs in response to improved inflation dynamics and mounting pressure from the private sector. A rate cut, proponents argue, could help stimulate economic activity, reduce financing costs for firms, and support Nigeria’s fragile recovery. Over the past two months, consumer price inflation has shown signs of deceleration, creating space for monetary policymakers to consider easing. Inflationary pressures, which had soared…
Power generation companies (GenCos) in Nigeria are sounding the alarm over a rapidly escalating debt crisis, warning that failure to address a debt burden now estimated at up to N5.2 trillion could trigger widespread shutdowns and plunge the country into prolonged blackouts. Industry sources say the figure combines roughly N4.7 trillion owed directly to GenCos by market players—federal agencies, Bulk Electricity Trading bodies, and distribution companies—and an additional N500 billion in late payments and legacy obligations. GenCos claim they currently receive less than 30 percent of their monthly invoices for electricity delivered to the national grid, saddling them with severe liquidity constraints that…
Nigeria is currently channeling approximately 50 percent of its national revenue into debt servicing, according to a recent report by a government-appointed presidential advisory panel. The revelation has raised serious concerns about the country’s fiscal sustainability and the implications for development funding and public services. The panel, composed of fiscal policy experts and senior economic advisers, was tasked with evaluating the nation’s financial health and proposing reforms to improve revenue collection and spending efficiency. Their findings indicate a troubling trend: as debt obligations rise and revenue growth stagnates, Nigeria’s ability to fund infrastructure, education, healthcare, and security becomes increasingly constrained.…