Hello Readers, Bizwatchnigeria brings the latest business news highlights in Nigeria for the week, of September 24- 1st of October, 2022
International Oil price Crashes To $86/barrel
Brent, the global crude benchmark, fell in price on Sunday, as practically all oil grades, saw lower pricing on the opening day of the week, despite attempts by the Organization of Petroleum Exporting Countries (OPEC) to stabilize the commodity’s price. As oil prices fell, statistics from OPEC’s September 2022 Oil Market Report revealed that an oil rig in Nigeria remained inactive in August 2022, compared to the number of operational rigs the previous month.
NNPC Spends Total Oil, Gas Revenue On Petrol Subsidy
According to the latest figures from the Nigerian National Petroleum Corporation Limited (NNPCL), the national oil company spent 94.77 per cent of its earnings on petrol subsidy payments in August. The move, which obviously indicates a bleak economic prognosis, occurred on the same weekend that the Police Special Task Force on Petroleum and Illegal Bunkering (IGP-STFPIB) announced the seizure of 123 oil tankers used for crude oil theft.
Breaking News: Nigeria’s Power Grid Collapses To Zero Megawatts
At 10:51 a.m. on Monday, Nigeria’s power grid crumbled to zero megawatts (MW), producing a statewide power outage. The outage came just days after electrical customers reported increased supplies.
Breaking News: CBN Pushes Interest Rate To 15.5%, Amid Rising Inflation
To combat growing inflation, the Central Bank of Nigeria (CBN) policy-setting council increased the monetary policy rate (MPR), which measures interest rates, from 14% to 15.5%. In July, the interest rate increased from 13% to 14%. The monetary policy rate (MPR) is the baseline interest rate in an economy, upon which all other interest rates are based.
Nigeria’s Stock Market Gains 0.3% As New Week Begins
The NGX benchmark index finished at 49,189.32 points, up 0.3% on the day. As a result, the market’s year-to-date (YTD) return increased to 15.2% from 14.8% the previous trading day. MULTIVERSE (+9.9%), FCMB (+8.0%), and UBN (+7.8%) were the top gainers in today’s trading session. ACADEMY (-10.0%), NEM (-8.9%), and NEIMETH (-8.3%) were the day’s biggest losses.
LCCI To Buhari: Remove Petrol Subsidy Now
The Lagos Chamber of Commerce and Industry (LCCI), has advised President Muhammadu Buhari to remove the petrol subsidy. Speaking at the 60th-anniversary celebration of the Oil Producers Trade Section held in Lagos, where he was represented by Vice President, LCCI, Gabriel Idahosa, the President of the Chamber, Dr. Michael Olawale-Cole said petrol subsidy is no longer sustainable.
CBN Orders Banks To Fund Accounts, Raises CRR To 32.5%
The Central Bank of Nigeria (CBN) has directed all commercial banks to fund their accounts by Thursday in order to allow for liquidity mopping up. The move comes after the Monetary Policy Committee (MPC) increased the Cash Reserve Ratio (CRR) from 27.5 percent to 32.5 per cent in order to combat inflationary pressures.
Money In Supply Rises To N49.36trn Despite FG Debt
The Central Bank of Nigeria (CBN) has revealed in its money and credit statistics that the economy’s money supply (M3) has climbed to N49.36 trillion as of August 2022, a 9.21 per cent increase or N4.16 trillion Year-to-Date (YTD) increase from the N45.19 trillion recorded in January 2022. This is against the backdrop of increasing federal government borrowings to fund the country’s massive budget imbalance.
DMO: FG Borrows N1trn To Fund Petrol Subsidy Despite Warnings
The Debt Management Office (DMO), has revealed that the Federal Government had secured a N1 trillion credit facility to fund its petrol subsidy payments. This is in spite of the warnings from concerned bodies and stakeholders.
Dollar Peaks At N735 As Nigeria’s Political Campaign Starts
On Wednesday, the dollar reached N735 on the parallel market as political campaigning began in the country. Dollar prices have risen from N718-N720 to N728-N735 in the last week, according to Bureau De Change operators in Lagos and Abuja.
CBN Lends N9.3tn To Businesses, Reduces Intervention
The Central Bank of Nigeria (CBN) has lent N9.3 trillion to companies while reclaiming N3.7 trillion. Dr Yusuf Yila, CBN’s Director of Development Finance, revealed this to media on Wednesday in Abuja, stating that manufacturers received 31% of the investment, which was the largest portion.
Nigerian Stock Market Investors Record N14bn Income
The stock market closed the session with a favourable trend, as it gained N14 billion on Wednesday after losing N15 billion on Tuesday. The All Share Index gained 10.25 basis points, or 0.02 per cent, to settle at 49,171.70 points, as investors earned N14 billion in value as market capitalization increased to N26.531 trillion.
States To Receive $750m World Bank Loan In December
Nigerian states will receive the first tranche of a $750 million World Bank loan by December 2022. According to the final report for State Action on Business Enabling Reforms, which is published on the World Bank’s website, around $0.5 million to $4 million would be distributed to Nigerian states based on specified criteria.
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FG To Save $350m From Sugar Production, Promote 100,000 Jobs
The Federal Government adopted Phase II of its 10-year National Sugar Masterplan on Wednesday, with the objective of saving $350 million per year and creating 110,000 new employees.
Agric Imports Rise To N4.6tn, Insecurity Plays Major Factor
In the midst of an ongoing insecurity situation that has hampered farming activity in many regions of the nation, the total value of agricultural items imported into Nigeria in the previous two years has risen to N4.6 trillion.
