Hello Readers, Bizwatchnigeria brings you the latest business news highlights in Nigeria for the week of December 11th–17th, 2022.
Debt Servicing Consumes 123% Of Nigeria’s 2023 Revenue
According to the World Bank, debt servicing will consume 123.4 percent of the Federal Government’s earnings in 2023. According to a presentation given by the new World Bank Lead Economist for Nigeria, Alex Sienaert, ‘Nigeria Public Finance Review: Fiscal Adjustment for Better and Sustainable Development Results,’ debt servicing would have consumed 100.2 percent of federal government earnings by the end of 2022.
FG Backs Emefiele, Spends N89.1trn On Stamp Duty Charges
The Presidency has dismissed as false and inaccurate reports that the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, could not account for N89.1 trillion in Stamp Duty payments collected by the bank. According to reports, Gudaji Kazaure, a member of the House of Representatives from Jigawa, allegedly accused the CBN governor of attempting to conceal facts surrounding the collecting of the contentious sum in a viral video.
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Nigeria To Make $3bn From Annual Exportation Of Agricultural Flowers
According to Dr. Vincent Isegbe, Comptroller General of the Nigeria Agricultural Quarantine Service (NAQS), the government is expecting to generate around $3 billion per year from hibiscus exports to Mexico. In November, NAQS and its Mexican counterpart, SENASICA, agreed a phytosanitary pact to stabilize and expand Nigerian hibiscus flower (zobo) exports to Mexico.
Nigeria’s Debt Surpasses N44trn Despite Fiscal Pressure
Nigeria’s overall public debt has reached an all-time high of $44.06 trillion, according to the latest domestic debt data provided by the Debt Management Office (DMO), up from N42 trillion in the second quarter of the year. At the conclusion of the third quarter of 2022, the nation’s debt profile is predominantly driven by domestic borrowing, which accounts for more than 61%, and external debt, which accounts for more than 38%. According to the figures, debt service expenses increased by 23% to N3.04 trillion.
Oil Production Hits 1.18mbpd, Highest In Seven Months
Nigeria’s crude oil production increased to 1.185 million barrels per day in November 2022, the greatest output in the country’s history. According to the most recent oil production numbers acquired from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Sunday, the country’s output grew by 171,119 barrels per day in November compared to the previous month.
CBN Laments Poor Repayment Of Intervention Loans
The Central Bank of Nigeria (CBN), has lamented the poor repayment of intervention credit facilities it has so far provided. Speaking at the 2022 Retreat for the Development Finance Department in Abuja, Aishah Ahmad, the Deputy Governor, Financial System Stability Directorate of the central bank, noted that the poor repayment of loans by beneficiaries might affect the sustainability of the bank’s initiatives.
Oil Marketers To FG: Discontinue Petrol Subsidy To Solve Energy Crisis
The Major Oil Marketers Association of Nigeria (MOMAN), has charged the Federal Government (FG) to discontinue petrol subsidy to address the lingering energy crisis in the country. The oil marketers made this submission during an online workshop for energy reporters, which centred on the need for the deregulation of petrol pricing and the discontinuation of subsidy.
Naira, External Reserves Fall Despite Rising FX Demand
At the investors’ and exporters’ foreign exchange window, an official venue for manufacturing companies, the Nigerian currency, the Naira, fell to N446.38. In the parallel market, the exchange rate fell to N745 as year-end demand for foreign dollars increased. On Tuesday, the open indicative rate in the investors’ window ended at N445.40 to the dollar. The highest rate reported throughout the day’s trade was N452 to the dollar before it finished at N446.38.
Nigerian Treasury Bills Rises Ahead Of CBN Auction
Nigerian treasury notes continue to rise ahead of the Central Bank of Nigeria’s (CBN) midweek main market auction. In the secondary market, the average yield fell by seven basis points to 8.2%. The Central Bank of Nigeria (CBN) will roll over N13.58 billion in maturing bills throughout the short, mid, and long end of the curve. The CBN would sell N8.50 billion in 91-day notes to the market.
IMF Assists Ghana With $3 Billion Lifeline Deal
The International Monetary Fund (IMF) and Ghana have agreed a staff-level agreement for a three-year extended credit facility worth about $3 billion, according to a statement issued by the IMF on Tuesday. BizWatch Nigeria recalls that the West African country addressed the IMF in July, seeking assistance to drive economic performance in the face of macroeconomic headwinds caused by a significant debt burden.
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New Naira Notes To Begin Circulation Today
The new naira notes will go into circulation on Thursday, with deposit money banks starting to distribute them to their customers via over-the-counter payments. The new measures were unveiled by Nigeria’s president, Muhammadu Buhari, during a weekly Federal Executive Council meeting in Aso Rock Villa. The new notes, in values of N200, N500, and N1,000, were unveiled by the President.
Petrol Price Cut Fails To Reduce Fuel Queues
Queues for Premium Motor Spirit, often known as petrol, may persist in several states despite a 17-kobo reduction in the commodity’s ex-depot price, according to oil marketers on Wednesday. Members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) had stated that the Nigerian National Petroleum Company Limited’s supply of PMS was insufficient, with several states outside Lagos and Abuja not receiving adequate supplies.
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Senate Urges CBN To Adjust Withdrawal Limit
The Senate after a delayed plenary on Wednesday has asked the Central Bank of Nigeria (CBN) to significantly adjust its recently announced cash withdrawal limits in response to public outcry against the new policy. In its resolution, the Senate also requested that its Committee on Banking and Finance conduct aggressive oversight of the apex bank as it implements the policy and provide periodic reports to the Senate.
Nigeria’s Inflation Rate Worsens To 21.47%
According to information from the National Bureau of Statistics (NBS), the consumer price index, which is used to calculate Nigeria’s headline inflation rate, increased for the tenth consecutive month, rising to 21.47% in November from 21.09% in October. With a significant security risk that has affected food costs, this amounts to a 38 basis point rise in inflation when compared to the nation’s inflation data from October.
NGX Daily Gain Rises As Inflation Fears Worsen
The Nigerian Exchange (NGX), which has seen headline inflation rise to 21.47%, is nonetheless seeing strong growth as investors continue to pour their investable cash into value and growth stocks on the local market. Due to increased purchasing interest in MTN Nigeria, Zenith Bank shares, and other stocks, today’s daily gain exceeds N133 billion. The result was that the year-to-date return increased to 15.26%, trailing the average inflation rate over the same time period. Coincidentally, rates in the fixed income market have decreased.
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