The rising cost of food in Nigeria is significantly impacting the fast-food industry, according to the CEO of FoodCourt, a leading quick-service restaurant chain. Speaking at an industry forum, the CEO highlighted how persistent food inflation has driven up operational costs, strained profit margins, and altered consumer spending patterns, posing serious challenges to the sector. Nigeria’s food inflation rate has remained high, fueled by factors such as currency depreciation, supply chain disruptions, and rising production costs. These pressures have forced fast-food operators to grapple with higher prices for ingredients, packaging, and transportation. For many businesses, absorbing these costs without passing…
Author: Temitope Nlewemchi
Fitch Ratings has warned that Nigeria’s widening budget deficit could intensify pressure on the naira, leading to further depreciation of the currency. The global credit rating agency highlighted that the country’s fiscal imbalance, coupled with rising public debt, poses significant risks to economic stability and investor confidence. In its latest report, Fitch noted that Nigeria’s budget deficit, projected to exceed earlier estimates, is being driven by persistent revenue shortfalls, high debt servicing costs, and increased government spending. These factors have exacerbated the fiscal gap, forcing the government to rely heavily on borrowing and other deficit-financing mechanisms, including the Central Bank…
Nigerian Breweries Plc has reaffirmed its commitment to celebrating and preserving Nigeria’s rich cultural heritage through its active participation in the Calabar Carnival. As a long-standing partner of the event, the company played a prominent role in this year’s festivities, which brought together thousands of participants and spectators from across the globe. Known as Africa’s biggest street party, the Calabar Carnival serves as a platform to showcase the diverse cultural expressions of Nigeria, including music, dance, fashion, and art. Nigerian Breweries added color to the event by sponsoring key segments of the carnival and organizing activities that highlighted the vibrancy…
Maritime unions have expressed their appreciation for the Nigerian Ports Authority (NPA) over its efforts to enhance career development opportunities for its workforce. The unions praised the NPA’s commitment to improving employee skills through training programs, promotions, and initiatives aimed at fostering professional growth in the maritime sector. Speaking during a recent event, representatives of the Maritime Workers Union of Nigeria (MWUN) and other allied unions highlighted the positive impact of the NPA’s policies on career advancement. They noted that these efforts have not only boosted employee morale but also improved operational efficiency within Nigeria’s ports. The unions specifically lauded…
First City Monument Bank (FCMB), in partnership with the Nigerian Association of Women Entrepreneurs (NNEW), has successfully graduated 215 women from its capacity-building program aimed at empowering female entrepreneurs. The initiative, which focuses on equipping women with critical business skills, financial literacy, and access to funding opportunities, marks another milestone in promoting gender equality and entrepreneurship in Nigeria. During the graduation ceremony, FCMB’s representatives highlighted the program’s impact on enabling women to scale their businesses, create jobs, and contribute to economic growth. The initiative aligns with the bank’s commitment to fostering financial inclusion and supporting women-led enterprises, which are often…
The World Bank has highlighted significant inefficiencies in governance, infrastructure, and business environments as key factors contributing to the loss of investments in Nigeria and other developing nations. According to a recent report, these inefficiencies have deterred both domestic and foreign investors, stalling economic growth and development across several countries in sub-Saharan Africa. The report emphasizes that poor infrastructure, corruption, regulatory bottlenecks, and inconsistent policies are major impediments to attracting and retaining investment in Nigeria and other emerging economies. These challenges create an unstable and unattractive environment for businesses, leading to missed opportunities for economic growth, job creation, and poverty…
The Nigerian Insurance Commission (NAICOM) has imposed a combined fine of N74 million on African Alliance Insurance, Guinea Insurance, and several other insurance companies for various regulatory violations. The fines are part of the commission’s ongoing efforts to enforce compliance with industry standards and ensure the integrity of the insurance sector in Nigeria. African Alliance and Guinea Insurance, along with other unnamed companies, were penalized for failing to meet certain regulatory requirements, including delayed submission of financial statements, inadequate reserves, and non-compliance with other statutory obligations. The fines are intended to serve as a deterrent to other companies in the…
The Nigerian Ministry of Housing has earmarked N3.5 billion in its 2024 budget for the settlement of outstanding debts related to housing projects. This allocation is part of the government’s broader strategy to address financial obligations in the housing sector and ensure the continuity of ongoing and future housing programs. The N3.5 billion budget for debt settlement is aimed at clearing arrears owed to contractors, suppliers, and other stakeholders involved in the development of housing projects across the country. The ministry’s efforts to resolve these financial obligations are seen as crucial for maintaining the momentum of the federal government’s housing…
The Rivers State government has awarded a N30 billion contract for the reconstruction of the Kalabari Road to Julius Berger Nigeria Plc, one of Nigeria’s leading construction companies. The project, which is expected to significantly improve transportation in the region, is part of the state government’s broader efforts to enhance infrastructure and promote economic development in the area. Governor Nyesom Wike, who officiated the contract signing ceremony, emphasized that the Kalabari Road project is crucial for the development of the Kalabari Kingdom and surrounding communities. The road, which links key towns in the area, has long been in need of…
Minister of Works and Housing, David Umahi, has praised the progress made on the reconstruction of the Lagos-Calabar Highway, one of Nigeria’s most critical road networks. The project, which aims to improve transportation efficiency and foster economic growth, has seen substantial work completed, despite the challenges posed by the scale of the infrastructure development. Umahi, who recently inspected the ongoing work along the highway, highlighted the significant strides made in key sections of the road, particularly in the southern and southeastern regions. He noted that construction teams have been working diligently to ensure that the highway, which stretches across several…
The Nigerian equity market recorded a significant N472 billion gain in a shortened trading week, demonstrating resilience despite ongoing economic challenges. The positive performance was driven by a strong rally in several key sectors, particularly banking, consumer goods, and energy stocks, which have seen increased investor confidence in recent weeks. The market’s remarkable growth came amid a four-day trading session, with the Nigerian Stock Exchange (NSE) closing higher in all sessions of the week. The market capitalization rose from N27.3 trillion at the beginning of the week to N27.8 trillion by its conclusion, as several blue-chip companies posted solid earnings…
Financial experts are forecasting significant hurdles for smaller banks in Nigeria as the Central Bank of Nigeria (CBN) moves forward with plans to enforce stricter capital requirements across the banking sector. The new regulations, designed to strengthen the financial system and ensure stability, are expected to create difficulties for smaller players who may struggle to meet the higher capital thresholds. The CBN’s move to increase the minimum capital base for banks is part of broader reforms aimed at consolidating the sector, improving liquidity, and enhancing the ability of banks to absorb shocks in times of financial instability. However, smaller banks,…
As inflation remains a concern for many investors, it’s crucial to adopt strategies that can protect and grow your wealth. To outpace inflation, investments should not only preserve purchasing power but also generate returns that exceed the rate of price increases. Here are some investment tips to help you navigate these economic challenges: Invest in Inflation-Protected Assets Treasury Inflation-Protected Securities (TIPS): These government bonds are specifically designed to protect against inflation. The principal increases with inflation, and the interest is paid based on the adjusted principal. TIPS can provide a steady income while maintaining the purchasing power of your initial…
A new report has shown that the growth of Nigeria’s real sector, which encompasses industries such as manufacturing, agriculture, construction, and services, has significantly declined in 2024. This downturn signals a worrying trend for the country’s economic diversification efforts, which have long relied on strengthening the real sector to reduce dependence on oil revenues. According to the report, the slowdown can be attributed to a combination of factors, including inflationary pressures, high energy costs, inadequate infrastructure, and a challenging macroeconomic environment. Businesses in key industries have faced rising production costs, lower demand, and reduced access to capital, all of which…
The Nigerian government has concluded its investigation into five major aviation accidents, with findings now being reviewed and recommendations set to be made public. This marks a significant step in addressing safety concerns within the country’s aviation sector, which has faced increasing scrutiny in recent years. The investigations, led by the Accident Investigation Bureau (AIB) Nigeria, sought to determine the causes of the accidents and identify areas for improvement in aviation safety standards. The affected incidents involved both domestic and international flights and occurred over the past few years, drawing attention to the need for robust safety protocols and more…
The Nigeria Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) has raised alarm over the low rate of contract staff conversion to permanent positions in the banking sector. The union has called for urgent reforms to address the growing concern, highlighting the precarious working conditions faced by many contract employees in the industry. Contract staff in banks, often employed to fill short-term positions or handle specific projects, have long been a part of the financial sector workforce. While these positions provide employment opportunities, the union argues that the lack of pathways to permanent employment results in job insecurity and…
The Nigerian government has unveiled the Renewed Hope Housing initiative, opening bids for the development of affordable homes in 17 states. This ambitious project aims to address the nation’s chronic housing deficit while boosting economic activity in the construction sector. Under the initiative, the government seeks to partner with private developers to construct affordable housing units for low- and middle-income earners. The project is part of the broader Renewed Hope agenda, which prioritizes inclusive economic growth, infrastructure development, and improved living standards for Nigerians. With a housing deficit estimated at over 20 million units, the initiative is a timely response…
A recent warning from a trade advocacy group has raised alarms that Nigeria’s currency swap deal with China could undermine the objectives of the African Continental Free Trade Area (AfCFTA). While the agreement aims to ease bilateral trade between Nigeria and China, critics argue that it may sideline intra-African trade and weaken the continent’s economic integration efforts. The Nigeria-China currency swap deal, established in 2018, allows businesses to trade directly in naira and yuan, bypassing the need for the U.S. dollar. This arrangement was designed to reduce foreign exchange pressures, facilitate trade, and strengthen economic ties between the two nations.…
The African Export-Import Bank (AfreximBank) has called for increased empowerment opportunities for youths across the continent, emphasizing their critical role in driving sustainable development and economic transformation. The bank’s advocacy highlights the importance of harnessing the potential of Africa’s burgeoning youth population through targeted programs and initiatives. With over 60% of Africa’s population under the age of 25, the continent boasts one of the youngest demographics in the world. While this presents a tremendous opportunity, it also poses significant challenges. High unemployment rates, limited access to quality education, and systemic barriers have left many young people struggling to realize their…
The World Bank has raised concerns about a widening education funding gap in Nigeria and several other developing nations, warning of the dire consequences this shortfall could have on global educational outcomes. The report emphasizes the urgent need for increased investment to address the challenges plaguing education systems, particularly in low- and middle-income countries. Nigeria, Africa’s most populous nation, exemplifies the gravity of the issue. Despite being home to one of the largest youth populations in the world, the country’s education sector remains severely underfunded. According to the World Bank, this funding gap threatens to undermine efforts to achieve universal…