Hello Readers, Bizwatchnigeria brings the latest business news highlights in Nigeria for the week of October 30th- November 5th, 2022.
CBN Damages N6tn Under Buhari’s Watch, Here’s Why
Since President Muhammadu Buhari ascension to power, the Central Bank of Nigeria (CBN) has destroyed about N6 trillion worth of mutilated and old banknotes. Already, data obtained from the annual reports of the currency operations department of the apex bank between 2016 and 2020 showed that the central bank destroyed mutilated banknotes worth N4.1 trillion during the five-year period. But reports state that by the time Buhari would be ending his second term tenure in May 2023, the figure would have risen above N6 trillion.
Naira Devaluation To Worsen Nigeria’s Food, Energy Crisis — W’Bank
According to the World Bank’s current Commodity Markets Outlook report, the declining value of the Nigerian naira is driving up food and gasoline costs, potentially worsening the food and energy crises the country is already facing.
Nigeria’s Domestic Gas Supply Increases By 14%
On Monday, the Federal Government reported that the expected performance of Nigeria’s domestic gas supply requirement has increased by 14.14 percent to 64.8 percent in 2021. It stated that this was in comparison to the 50.66% obtained in 2020, and that efforts were being strengthened to increase the country’s gas supply volumes in 2022.
Nigeria’s Debt To Contractors Worth Over N11tn, Says Fashola
The Federal Government owes contractors N11.16 trillion for the construction of several roadways around the country. Babatunde Fashola (SAN), Minister of Works and Housing, said this while defending his ministry’s proposed budget in the 2023 Appropriation Bill, saying his ministry has currently won 1,642 highway contracts for 1,632 projects totaling N10.395 trillion.
Nigeria Receives N109.3bn Support To Constructs Mini-Dams
The African Development Bank, AfDB, ($244m) and the International Fund for Agricultural Development ($5m) have given the Federal Government a total of $249 million (N109.3 billion at Tuesday’s official exchange rate of N439.02/$) for flood prevention and food production.
Twitter Revenue May Nosedive, Here’s Why
Twitter may start to see its revenue nosedive, as Fortune 500 corporations, including Coca-Cola, Amazon, and Apple, were enjoined to boycott the tech giant. BizWatch Nigeria understands that the corporations are Twitter’s major revenue sources, accounting for about 90%. Basically, the messaging app’s turnover is driven by Coca-Cola, Amazon, Apple, Best Buy Co., and Comcast Corp.
MTN, Airtel Earn N1.92tn From Call And Data
MTN and Airtel, in a period of nine months, earned N1.92 trillion from the call and data services they rendered to their customers. The N1.92 trillion earnings from the call and data services the telcos rendered between January and September 2022, represents an increase of 18.27% from the N1.62 trillion they made in the corresponding period of the previous year (2021).
eNaira Records Over 700,000 Transactions Valued At N8bn
According to the Central Bank of Nigeria (CBN), the country’s virtual currency, the eNaira, has logged 700,000 transactions worth N8 billion since its launch on October 25, 2021. Mr. Godwin Emefiele, governor of the apex bank, made the announcement on Wednesday in Abuja, during the 28th edition of the apex bank’s annual in-house executive seminar, themed “Digitalization of Money and Monetary Policy in Nigeria.’ Aisha Ahmad, the CBN’s Deputy Governor for Financial System Stability, represented him.
IMF Warns Of Dollar Risks Amid Naira Crash, Rising Inflation
As Nigeria struggles with a sinking local currency and surging inflation, the International Monetary Fund (IMF) has cautioned that dollarisation will be difficult to reverse. The IMF issued the warning in a new report titled “Digital Money and Central Bank Balance Sheets.” In the study, the IMF found that when inflation is severe and persistent, market players strive to protect themselves by holding dollars.
FG To Advance Taxes, Fewer Incentives In 2023
According to a copy of the public presentation of the 2023 proposed budget by the Minister of Finance, Budget, and National Planning, Mrs Zainab Ahmed, released recently, the Federal Government plans to introduce more sin taxes and reduce tax incentives in 2023 through the proposed 2022 Finance Bill.
FG To Handover Pipeline Assets To Private Investors
The Federal Government (FG), has set up a framework for the concession of petroleum product pipeline assets to private investors. This, it believes will check the incessant vandalism sabotaging the country’s economy.BizWatch Nigeria understands that pipeline assets across the country are completely owned by the Federal Government. However, vandalism has since been disrupting the nation’s crude oil output, such that at least $700 million is lost on a monthly basis.
Nigeria After Chinese, Portuguese Loans To Complete Railways
According to Transport Minister Mu’azu Sambo, the federal government is seeking multibillion-dollar loans from Chinese, Portuguese, and Turkish financial institutions to finish current train projects around the country. On Thursday, Sambo delivered this remark before the Joint National Assembly Committee on Land and Marine Transport, which is led by Senator Danjuma Goje. He stated that the ministry was dedicated to carrying out the Nigeria Railway Modernization Project.
Nigeria’s Telecoms sector Employs 500,000, Receives $70bn Investment – NCC
Prof. Umar Danbatta, Executive Vice Chairman of the Nigerian Communications Commission (NCC), has indicated that the telecommunications sector supports 500,000 employment. He also stated that the industry’s contribution to GDP had increased from insignificance to 12.61 percent as of the fourth quarter of 2021, emphasizing that the sector had attracted $70 billion in investment to date.
Insecurity: Nigerian Railway Passengers Drop By 55.6%
Passengers who travelled via the rail system have dropped by 55.6% from 953,099 between January and March 2022 to 422,393 which was recorded between April and June of the same year. Disclosing this development in its data contained in the latest report by the National Bureau of Statistics (NBS), titled ‘Rail Transportation Data Q2 2022’. , the Nigerian Railway Corporation (NRC) said revenue generated from train passengers in the country declined by 71% in the second quarter of the year, when compared with the first quarter.
LBS Discloses FG’s Targets With Naira Redesigning
Lagos Business School (LBS), has disclosed that the Federal Government (FG) is looking forward to not only reducing counterfeit notes but to as well check terrorism and naira strength. In a document presented by a renowned Economic Expert Bismarck Rewane, LBS also stated that the President Muhammadu Buhari-led government also believes that the redesigning of N100, N200, N500, and N1,000 bank notes would curb the country’s alarming inflation rates.
