Interbank rates declined in the money market as inflows from the Federal Account Allocation Committee (FAAC) helped to maintain the financial system’s liquidity.
“System liquidity was bolstered by FAAC inflows, which offset bond settlement outflows, but it remained negative,” CardinalStone Limited wrote in a note.
Money market rates have risen by double digits as a result of monetary policy rate hikes and a liquidity deficit in financial markets. The rate direction has been identified as the most important factor influencing payments on banks’ money market deposits and mutual fund performance.
Due to monetary policy tightening, banks have been borrowing from the Central Bank of Nigeria’s (CBN) standing lending facility at a higher rate of 31.75%.
The rates also affect local lenders cost of funds to finance operation, but analysts said banks with huge deposits based are often at an advantage.
Outflow relating to huge bets at the Debt Management Office local bonds auction on Monday dragged the liquidity balance, but FAAC credit reduced the pressure.
Interbank rates—OPR and O/N—declined by 195bps and 183bps to settle at 30.41% and 30.78%, respectively, data from the FMDQ platform confirmed.
System liquidity was bolstered by FAAC inflows, which offset bond settlement outflows, although it remained in negative territory, CardinalStone Limited said in a note.
Analysts at Cowry Asset Limited stated that there was a general decline in Nigerian interbank offered rate (NIBOR) across most maturities. However, the Overnight NIBOR rose by 0.09%, reaching 32.47%.
Elsewhere, Nigerian Interbank Treasury Bills True Yield (NITTY) experienced upward movement across most maturities, while the average secondary market yield on T-bills moderated by 0.04%, settling at 24.11%.
Buying activity in several financial stocks is driving momentum on the Nigerian Exchange midweek. UBA, Zenith, and FBN Holdings were among the commercial lenders that drove the index upward.
Stockbrokers told MarketForces Africa in an interview at Broadstreet that the Nigerian Exchange is projected to continue to rise owing to results season, which has raised the expectations of numerous investors.
The market saw sale pressure in the last week of earnings season as investors refocused their attention on growth and value firms that matched their risk appetite.
According to stockbrokers, equities investors will continue to look for firms that offer both dividend payments and capital appreciation in the coming weeks as earnings reports begin to decline.
NGX records showed that sectoral performance was broadly positive, with three indices closing higher. The Banking index (+2.41%) led the gains, bolstered by strong buying interest in FBNH, ZENITHBANK, and UBA.
FBN Holdings gained 6.49% as investors take position amidst N350 capital raise plan by the board of directors. Zenith Bank surged by 4.66% after trading steady over weeks. UBA popped higher again,. Up by 5.19% after the group earnings release.
The naira traded mixed across foreign currency (FX) markets as Nigeria’s foreign reserves increased steadily. The Nigerian naira dropped further in the official window to N1654 per US dollar due to a lack of FX liquidity.
However, when demand pressure lessened, the informal currency market’s exchange rate rose by N20. The market thinks that the Apex Bank would sell US dollars to banks before the end of the week to alleviate exchange rate volatility caused by liquidity constraints.
According to FX spot data from the FMDQ website, the naira exchange rate fell by 0.06%, finishing at ₦1,654.09 per USD.
In the parallel market, the naira finished at ₦1,730 per US dollar, down from N1,750 on Tuesday. Currency dealers expect the FX auction to alleviate the US dollar supply deficit.
According to data from the Central Bank of Nigeria (CBN), the gross balance in external reserves has grown over the $39 billion threshold. The increase has been backed by steady FX inflows at a time when the Apex Bank has reduced its FX involvement in the market.
According to the most recent Central Bank statistics, Nigeria’s gross foreign reserve balance as of October 22, 2024 is $39.23 billion. Oil prices fell Wednesday as industry estimates showed that US oil stocks climbed more than expected. However, futures are still up around 2% this week as traders ponder the ongoing crisis in the Middle East.
Brent crude is presently trading at $74.84, while WTI is down to $70.63. Similarly, Gold prices dropped over 1% after reaching a record high.
This decline was driven by a stronger dollar and rising U.S. Treasury yields, which overshadowed safe-haven demand linked to the upcoming U.S. election on November 5 and the situation in the Middle East. Gold is trading at around $2,727.20 per ounce.
Mr Akintunde Sawyerr, Managing Director of the Nigerian Education Loan Fund (NELFUND), has declared the fund’s pledge to disburse 90 billion naira in tuition fees and stipends.
Sawyerr stated this at a meeting with the House of Representatives Committee on Student Loans, Scholarships, and Higher Education Financing on Wednesday in Abuja.
He stated that the fund has received over 350,000 applications and has already given more over N10 billion. According to him, the fund is inclusive, guaranteeing that every Nigerian, regardless of geography or background, receives the education they deserve.
Sawyerr emphasized that NELFUND is an organization established to give aid, particularly during these difficult economic times, in line with President Bola Tinubu’s Renewed Hope Agenda. He stated that the fund offers not just immediate palliative relief but a long-term solution aimed at fostering stability and growth in Nigeria.
“Applications are coming in at an average of over 1,000 per day, and we are making special provisions for students with disabilities.
“We are also focused on addressing barriers to girl-child education, recognising that denying girls the opportunity for further education denies the nation the chance to benefit from their leadership potential.
“With 70 per cent of our population under the age of 35, failing to provide education for this segment exposes Nigeria to a future fraught with instability and violence, this intervention by President Tinubu could not have come at a better time”.
Sawyerr further stated that deliberate efforts are being made to proactively reach out to regions that feel left behind, particularly the South East.
He noted that following multiple rounds of sensitisation in local communities, there has been significant progress with a surge in applications. He reiterated NELFUND’s commitment to working closely with the committee to achieve its goals.
“This collaboration is crucial in shaping a student loan system that truly serves the interests of all Nigerians.
“As we continue to work together, let us remember that our collective goal is the betterment of Nigeria and its youth.
“By ensuring education remains accessible and equitable, we are securing the future of millions of young Nigerians and building a stronger, more prosperous nation”.
In his remarks, the Chairman of the Committee, Rep. Gboyega Isiaka (APC-Oyo), described NELFUND as a critical agency. He noted that the fund is about creating a future where every Nigerian youth has the opportunity to realise their potential and contribute to national development.
Isiaka expressed concerns about the management’s capacity to handle the fund, given its potential. “As we proceed with proper oversight of this institution, we will focus on several key issues. For instance, we need to be able to ask ourselves: Where will NELFUND be in the next three to five years?
“How will it achieve its goals, and what challenges need to be addressed to get there?” he said.
Isiaka reaffirmed the committee’s commitment to ensuring accountability and transparency, pledging to work within the law to meet the aspirations of Nigerians, especially the youth.
The average yield on Federal Government of Nigeria (FGN) bonds remained stable in the secondary market yesterday due to a sparse trading session.
The average yield in the secondary market remained subdued at 19.34% at the end of the day as investors reduced trading activity on the naira asset.
Fixed income analysts reported that post-primary market auction trading activity has been low as investors’ appetites alter due to the increase in negative interest yields.
According to MarketForces Africa, the jump in inflation has eroded investors’ portfolio profits, while estimates suggest that Nigeria’s consumer price index (CPI) would continue to rise in the fourth quarter of the year.
A slew of fixed interest securities analysts said trading activities on Nigerian bonds have been mixed month on month as liquidity level and spot rates pricing set direction for pension fund administrators and other investors.
On Wednesday, the local FGN bonds market experienced mixed sentiments but ultimately ended on a slightly bullish note, AIICO Capital Limited told investors in a note.
Analysts noted that most of the activity focused on the February 2031 and May 2033 bonds, as investors capitalized on the attractive yields offered by these securities.
FSDH said in a report that the hike in rates and yields in Q3 2024 increased investor interest in the fixed-income market, putting downward pressure on FGN Bond yields during the quarter.
As a result, the average FGN Bond yield peaked at 20.1% in mid-August, but due to demand pressures, it fell to 18.7% as of 27 September 2024.
President Bola Tinubu has removed five ministers and modified the designations of 10 others. The nominations were revealed in a statement released by the presidency following the Federal Executive Council meeting on Wednesday.
The dismissed ministers are Uju-Ken Ohanenye, Minister of Women Affairs; Lola Ade-John, Minister of Tourism; Prof. Tahir Mamman (SAN), Minister of Education; Abdullahi Muhammad Gwarzo, Minister of State for Housing and Urban Development; and Dr. Jamila Bio Ibrahim, Minister of Youth Development.
Newly appointed ministers include Dr. Yusuf Tanko Sununu, Morufu Olatunji Alausa, Senator John Owan Enoh, and others.
Below is the full list of the new designations of the ministers:
Name of Ministers Current Designation & New Designation
1. Hon Dr Yusuf Tanko Sununu| Minister of State, Education| Minister of State Humanitarian Affairs and Poverty Reduction
2. Dr Morufu Olatunji Alausa| Minister of State, Health| Minister of Education
3. Barr. Bello Muhammad Goronyo| Minister of State, Water Resources and Sanitation| Minister of State, Works
4. Hon. Abubakar Eshiokpekha Momoh| Minister of Niger Delta Development| Minister of Regional Development
5. Uba Maigari Ahmadu| Minister of State, Steel Development| Minister of State, Regional Development
6. Dr Doris Azoka-Anite| Minister of Industry, Trade and Investment| Minister of State, Finance
7. Sen. John Owan Enoh| Minister of Sports Development| Minister of State, Trade and Investment (Industry)
8. Imaan Sulaiman-Ibrahim| Minister of State, Police Affairs| Minister of Women Affairs
9. Ayodele Olawande| Minister of State for Youth Development| Minister for Youth Development
10. Dr. Salako Iziaq Adekunle Adeboye| Minister of State, Environment| Minister of State, Health.
The House of Representatives has called on the Central Bank of Nigeria (CBN) to significantly raise its agricultural lending portfolio from the current 1.4% to 7% of total lending over the next five years.
This appeal is aimed at boosting agricultural productivity and supporting smallholder farmers across the country.
The resolution followed the adoption of a motion presented by Rep. Uchenna Okonkwo (LP-Anambra) during the House’s plenary session in Abuja. The motion, titled “Repositioning Nigeria’s Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) and De-Risking Agribusiness in Nigeria,” highlighted the critical need to address the sector’s funding gaps to drive economic recovery.
As part of the resolution, the House also urged CBN to ensure that 50% of the proposed agricultural loans are channeled to smallholder farmers through microfinance institutions, farmer cooperatives, and value chain commodity associations.
The recommended interest rates for these loans should range between 7.5% and 10.5%.
Okonkwo, in his argument, attributed the nation’s economic struggles, rising poverty, and food insecurity to declining agricultural productivity, primarily driven by low investment and inadequate funding.
Despite agriculture contributing 40% to Nigeria’s GDP and providing over 60% of employment, the sector continues to underperform due to insufficient capital investment.
Okonkwo further advocated for an additional $3 billion to be allocated to NIRSAL to support lending to actors across the agricultural value chain and reduce borrowing costs for farmers.
The House adopted the motion and mandated the Committees on Banking Regulations, Agricultural Production and Services, Nutrition and Food Security, and Finance to monitor compliance and report back within four weeks for further legislative action.
In a bid to enhance administrative efficiency, President Bola Ahmed Tinubu on Wednesday, dismissed five ministers from his cabinet.
This development was confirmed in a statement issued by the President’s Special Adviser on Social Media, Dada Olusegun.
The affected ministers are Uju-Ken Ohanenye, Minister of Women Affairs; Lola Ade-John, Minister of Tourism; Prof. Tahir Mamman, Minister of Education; Abdullahi Muhammad Gwarzo, Minister of State for Housing and Urban Development; and Dr. Jamila Bio Ibrahim, Minister of Youth Development.
According to the statement, the decision aligns with the President’s commitment to delivering on his promises to Nigerians. As part of this reshuffle, eight new measures were approved to strengthen the administration’s capacity for optimal performance.
Key among these actions is the renaming of the Ministry of Niger Delta Development to the Ministry of Regional Development, broadening its mandate to oversee all Regional Development Commissions. Additionally, the functions of the Ministry of Sports Development have been transferred to the National Sports Commission.
In a significant restructuring move, the Federal Ministry of Tourism will merge with the Federal Ministry of Arts and Culture to form the Federal Ministry of Art, Culture, Tourism, and the Creative Economy.
Ten ministers were reassigned to new portfolios, while seven new ministerial nominees were forwarded to the Senate for confirmation. Among the appointments, Shehu Dikko was named Chairman of the National Sports Commission, and Sunday Akin Dare was appointed Special Adviser to the President on Public Communication and Orientation.
Notable ministerial appointments include Bianca Odumegwu-Ojukwu as Minister of State for Foreign Affairs, and Jumoke Oduwole as Minister of Industry, Trade, and Investment. Dr. Nentawe Yilwatda was appointed Minister of Humanitarian Affairs and Poverty Reduction, Muhammadu Maigari Dingyadi as Minister of Labour and Employment, Idi Mukhtar Maiha as Minister of Livestock Development, and Yusuf Abdullahi Ata as Minister of State for Housing and Urban Development. Suwaiba Said Ahmad was also named Minister of State for Education.
This cabinet reshuffle is seen as part of President Tinubu’s broader strategy to streamline governance and deliver on his administration’s policy goals.
The World Bank Group has unveiled a transformative approach to agribusiness, aiming to establish a comprehensive ecosystem for the industry. In a bold move, the institution plans to double its annual commitments to agribusiness and agri-finance, reaching $9 billion by 2030.
The strategic shift is driven by four key trends reshaping the global agribusiness landscape: climate change, innovative finance solutions, digitalization, and addressing industry fragmentation. With the global demand for food expected to rise by 60% in the coming decades, the World Bank Group is responding to the increasing need for food security and job creation in emerging markets.
World Bank Group President Ajay Banga emphasized the importance of this pivotal moment. “We stand at a crossroads, and the path we choose today will determine the future. The World Bank’s ecosystem approach moves us beyond fragmented efforts to a constellation of solutions, with smallholder farmers and producer organizations at the center,” Banga stated.
The ecosystem approach leverages the work the World Bank Group has undertaken over the past 16 months to become a more integrated and coordinated institution. It will draw on the strengths of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) in building public sector capacity, alongside the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) in offering private sector financing and risk mitigation.
This cohesive strategy aims to mobilize $5 billion in investments by 2030, supporting governments and businesses alike in fostering sustainable agribusiness practices. For instance, the World Bank’s public sector arms will help countries develop regulations to ensure compliance with export standards, while advising on critical infrastructure such as national irrigation networks and land tenure solutions. Additionally, the institution will encourage governments to repurpose fossil fuel and agriculture subsidies to promote greener practices, unlocking substantial financing for the agricultural sector.
Private sector efforts will focus on providing debt and equity funding, alongside risk mitigation, to address the challenges of market access for smallholder farmers. The recently launched World Bank Group Guarantee Platform will streamline the delivery of tailored solutions, simplifying processes for partners.
By fostering stronger connections between smallholder farmers and supply chains, the World Bank Group aims to enhance productivity and climate resilience. IBRD will work with producer organizations to help farmers become reliable suppliers, while the IFC will provide financing for equipment and help cooperatives establish partnerships with larger companies.
The World Bank Group’s comprehensive approach is expected to significantly increase agricultural productivity, improve food security, and generate jobs in emerging markets. The emphasis on climate-smart production practices will contribute to reducing emissions, leading to cleaner air and water, and ultimately, a higher quality of life for communities worldwide.
L-R: John Opara, General Manager, Sales, Nigeria, Lufthansa Group; Zied Gueblaoui, former General Manager, Sales, Nigeria & Help Alliance Project Coordinator; Tolulope Aminu, Marketing Manager and Help Alliance Project Coordinator, Nigeria; Tunde Onakoya, Founder, Chess in Slum Africa and Guinness World Record holder; and Rene Koinzack, Head of Regional Sales, Southern and East African, Nigeria and Equatorial Guinea, for Lufthansa Group Airlines, at the commissioning of the Chess Innovation Hub, Alagomeji, Lagos, over the weekend.
The Chess Innovation Hub, a center for the intellectual and social development of underprivileged children through chess education, and an initiative of Chess in Slum Africa (CISA), has been commissioned in Lagos, Nigeria.
Help Alliance, the Lufthansa Group Airline’s aid organization, is pleased to have partnered with CISA in bringing this project to life. The collaboration underscores a shared commitment to transforming education and the aim to foster cognitive development in children from marginalized communities.
At the launch event, Tunde Onakoya, the founder of CISA and a Guinness World Record holder, passionately recounted the organization’s journey and achievements. CISA’s efforts have reached over 10,000 children through chess training and life skills, providing more than 200 scholarships and vocational opportunities. He highlighted the Chess Innovation Hub’s role in advancing CISA’s vision, with an ambitious target of empowering 100,000 children by 2030 through innovative education and leadership development.
“The Chess Innovation Hub will serve as a space for kids from the slums and streets to learn new skills and unlock their potential. Chess is just the beginning—it’s a pathway, not the final destination. Our aim is to equip children with essential skills like robotics, coding, and mathematics, helping them envision a bright future and recognize their potential, instead of letting poverty and lack define their lives,” said Tunde.
Representing Lufthansa Group at the event were René Koinzack, Senior Director Sales for Southern & East Africa, Nigeria & Equatorial Guinea; Zied Gueblaoui, former General Manager, Sales Nigeria & Help Alliance Project Coordinator; Tolulope Aminu, Marketing Manager & Help Alliance Project Coordinator, Nigeria and John Opara, the New General Manager for Lufthnasa Nigeria and Niger.
L-R: John Opara, General Manager, Sales, Nigeria, Lufthansa Group; Zied Gueblaoui, former General Manager, Sales, Nigeria & Help Alliance Project Coordinator; Tolulope Aminu, Marketing Manager and Help Alliance Project Coordinator, Nigeria; Tunde Onakoya, Founder, Chess in Slum Africa and Guinness World Record holder; and Rene Koinzack, Head of Regional Sales, Southern and East African, Nigeria and Equatorial Guinea, for Lufthansa Group Airlines, at the commissioning of the Chess Innovation Hub, Alagomeji, Lagos, over the weekend.
“We are very proud to support the Chess in Slum Africa initiative via Help Alliance. Help Alliance celebrates its 25th anniversary this year and we remain dedicated to advancing education and alleviating poverty, as key focus areas in our pursuit of the Sustainable Development Goals. The launch of the Chess Innovation Hub represents a significant step toward achieving these goals in Nigeria. The CISA team created a remarkable space for education, and I am very thankful to Tunde and his team as well our help Alliance coordinators for their vision and strong commitment. I am looking forward seeing the initiative to grow further,” said René Koinzack.
Zied Gueblaoui shared his excitement, saying, “Seeing the Chess Innovation Hub become a reality is a proud moment for me. It’s incredible to think back to three years ago when this was just an idea, fueled by Tunde Onakoya’s passion. Today, we stand here to witness the opening of this state-of-the-art facility, which will play a crucial role in uplifting children from the streets and slums of Lagos. It has been a true honor to contribute to this journey.”
Tolulope Aminu added, “Partnering with CISA was an easy choice. We recognized their authenticity and deep passion for their mission, which aligns closely with our goals at Help Alliance. Most importantly, CISA treats the communities they support with dignity, focusing on their potential rather than their struggles.”
Help Alliance was founded in 1999 by 13 Lufthansa Airline employees, it bundles the commitment of many employees and has developed into the central pillar of social commitment of the entire Lufthansa Group. With a primary focus on promoting access to education, employment, and income; help alliance is currently in over 60 projects across 29 countries working together with competent local partners and using the strengths of the Lufthansa Group to create prospects for children, young people and young adults. True to her motto “Closer to the world, Closer to its people”.
A bill currently under consideration in the House of Representatives seeks to divide Oyo State into two distinct entities, creating a new Oyo State with Oyo town as its capital and renaming the remaining portion as Ibadan State, with Ibadan City as its capital.
The bill, sponsored by Akeem Adeyemi (APC, Oyo) and six other lawmakers, has successfully passed its second reading. It is now referred to the Committee on Constitutional Review for further scrutiny and legislative processes.
Speaker of the House, Abbas Tajudeen, deemed the proposal clear-cut, and no debate was held before its referral. The bill’s focus is on constitutional amendments to facilitate the state’s restructuring.
Oyo State, originally established on February 3, 1976, after the breakup of the Western State during General Murtala Mohammed’s military regime, has seen multiple attempts to form new states in the past. Previous proposals to create Oke-Ogun and Ibadan states were unsuccessful.
In a related effort, a separate bill proposing the creation of Oke-Ogun State is also under review, sponsored by Oluwole Oke (PDP, Osun), as part of the ongoing constitutional amendments.
The Lagos State Ministry of Health enters a strategic partnership with the Society for Family Health (SFH) to reduce the prevalence of malaria in the state. A Memorandum of Understanding (MoU) between both parties has been signed to drive this initiative.
The partnership is part of the World Bank-supported Malaria Impact Project, which introduces innovative strategies aimed at decreasing malaria rates across public and private healthcare sectors in Lagos.
Nigeria faces significant challenges in malaria control, with over 97% of its population at risk. In 2021, the country accounted for 27% of global malaria cases and 31% of malaria-related deaths. Children under five and pregnant women remain the most vulnerable groups.
This collaborative effort is aligned with Nigeria’s National Malaria Strategic Plan (NMSP) and focuses on evidence-based prevention and treatment approaches. The partnership will expand access to malaria control tools such as insecticide-treated nets (ITNs) and improve diagnostic and treatment services statewide.
The MoU, signed by Lagos State Commissioner for Health, Prof. Akin Abayomi, and SFH Managing Director, Dr. Omokhudu Idogho, emphasizes strengthening diagnosis through the use of Rapid Diagnostic Tests (RDTs) and enhanced case management.
Dr. Idogho highlighted SFH’s commitment to working with local government authorities to address healthcare delivery gaps, particularly in underserved communities. The initiative aims to drive progress toward a malaria-free Nigeria while ensuring equitable access to high-quality healthcare services.
Additionally, community engagement is a key component of the program. Dr. Jennifer Anyanti, SFH’s Deputy Managing Director, emphasized the importance of reaching remote areas with essential messages on malaria prevention and treatment to improve health outcomes.
Malaria remains a major public health issue in Lagos State, exacerbated by the dense population and tropical climate that foster mosquito breeding. Efforts to curb malaria transmission continue, with a focus on protecting vulnerable populations such as children and pregnant women.
The 2024 Microsoft Digital Defense Report has revealed a staggering increase in global cyber attacks, with incidents doubling to 600 million per day, highlighting the escalating threat in the digital landscape.
This alarming statistic was disclosed by Mr. Colin Baumgart, Commercial Solution Area Director at Microsoft South Africa, during his presentation at the virtual Microsoft Africa AI Journalist Academy on Wednesday.
The presentation, titled “Cybersecurity in the Era of AI,” shed light on the growing collaboration between state actors and cybercriminals, as well as the role of artificial intelligence (AI) in intensifying cyber threats.
Baumgart highlighted that Microsoft receives over 78 trillion security signals daily from the cloud, endpoints, software tools, and its partner ecosystem. These signals play a critical role in detecting, understanding, and defending against the ever-growing array of digital threats.
The rise in data breaches has also been significant, with more than one billion stolen records reported in 2024, according to TechCrunch. These breaches have not only exposed personal information but have also emboldened cybercriminals seeking to profit from such attacks.
“As cyber threats evolve, so must the strategies to combat them,” Baumgart said. “This requires a concerted effort from individuals, organisations, and governments, as cyber threats do not recognise boundaries and can affect countless users across interconnected networks.”
Baumgart emphasised that partnerships and collaboration within the cybersecurity ecosystem are crucial to addressing these challenges. Sharing threat intelligence and best practices can contribute to a more robust and secure digital environment.
He also acknowledged that the same technologies designed to empower people and businesses could also be leveraged by cybercriminals. With the increasing use of AI to launch sophisticated cyber attacks, traditional defence mechanisms are being bypassed, and malicious activities are becoming more automated.
To counter these evolving threats, Baumgart explained that Microsoft’s security strategies must continue to adapt. The partnership between AI and human expertise is vital in this effort, as AI can efficiently analyse vast amounts of data, but human judgment remains essential in making complex, nuanced decisions.
As the global cybersecurity landscape continues to shift, the balance between leveraging AI and maintaining human oversight will be key to staying ahead of AI-driven cyber threats.
Sahara Group To Invest $1bn in LPG in Nigeria, Others
The Federal Government stops the export of locally produced Liquefied Petroleum Gas (LPG), commonly known as cooking gas, as part of efforts to stabilize the soaring prices. The suspension takes effect on November 1, 2024.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, announces that this is a short-term solution to address the rising cost of LPG. He states, “Starting November 1, 2024, the Nigerian National Petroleum Corporation Limited (NNPCL) and local LPG producers must stop exporting gas produced in-country, or alternatively, import equivalent volumes of LPG exported at cost-reflective prices.”
Ekpo convenes a meeting with stakeholders in Abuja to tackle the increasing prices and the resulting hardship on Nigerians. This information is included in an official statement by his spokesperson, Louis Iba.
The Minister directs the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to collaborate with stakeholders and develop a domestic pricing framework within 90 days. This framework will index the price of LPG to domestic production costs, moving away from the current practice of linking it to external markets like the Americas or Far East Asia, ensuring fairer pricing for Nigerians.
Looking at a long-term solution, Ekpo outlines plans to develop facilities within 12 months for blending, storing, and distributing LPG. He also announces the cessation of LPG exports until the market achieves stability and sufficiency.
Despite ongoing efforts, LPG prices continue to rise, now fluctuating between N1,100 and N1,500 per kilogram. Ekpo’s directives aim to resolve these issues and provide Nigerians with more affordable cooking gas.
In a strategic effort to enhance the livelihoods of smallholder farmers in Lagos State, the British American Tobacco Nigeria Foundation (BATN Foundation), in partnership with the Lagos State Agricultural Development Authority (LSADA), donated 40 fifty-kilogram smoking kilns to selected farmers and agribusinesses. This initiative, marking World Food Day 2024, aims to promote sustainable agricultural practices and strengthen local production.
With BATN Foundation’s support, LSADA also facilitated several weeks of intensive capacity-building programs and established four demonstration sites to provide hands-on training to over 200 participants from agricultural zones across the state.
The handover ceremony, held at the Police College, Ikeja, was attended by Governor Babajide Sanwo-Olu, government officials, fish farmers’ associations, and cooperative societies. The governor used the occasion to advocate for greater efforts toward food security, underscoring the significance of smallholder farmers in advancing sustainable development.
At the Lagos Farm Fair, Governor Sanwo-Olu delivered a keynote speech on the theme, “Right to Foods for a Better Life and a Better Future.” He emphasized the state’s commitment to agricultural transformation and stressed the importance of public-private partnerships in addressing hunger and malnutrition.
“Lagos is committed to transforming agriculture, and events like the Lagos Farm Fair provide a platform to empower our farmers while ensuring access to nutritious food for everyone,” Sanwo-Olu stated.
Odiri Erewa-Meggison, a board member of the BATN Foundation, reaffirmed the Foundation’s long-standing dedication to empowering Nigeria’s agricultural sector. Highlighting the Foundation’s impact on over 300,000 smallholder farmers and more than 17 million beneficiaries nationwide over the past two decades, she stressed the ongoing need to foster food security.
“While we’ve made progress, millions of Nigerians still struggle to access healthy food. Agriculture holds the key to building a more resilient food system. At the BATN Foundation, we empower farmers—the backbone of our food systems—through training, capacity development, and financial support to create a sustainable future where everyone can access nutritious food,” she said.
She also expressed appreciation to partners, including the Lagos State Government and Stanbic IBTC, for their continuous support. Erewa-Meggison urged the public to support local farmers by buying locally grown produce and promoting small-scale farming as a step toward sustainability and self-reliance.
Dr. Rotimi Fashola, Senior Special Adviser to the Governor on Agriculture, commended the BATN Foundation and its partners for their valuable contributions to food security in Lagos. He reiterated the government’s commitment to supporting initiatives that empower farmers and enhance productivity.
“We recognize the critical role of smallholder farmers in securing our food systems and will continue to provide the necessary resources and support to help them thrive,” Fashola stated.
Oludare Odusanya, General Manager of the BATN Foundation, emphasized the Foundation’s holistic approach to farmer support. He noted that beyond teaching best practices for increased fish production, market access and value addition are crucial to building resilience against price fluctuations.
“In our work with farmers, we’ve seen that it is not just about imparting knowledge for better yields but also equipping them with market access and tools for value addition to withstand market volatility,” Odusanya remarked.
The event attracted prominent attendees, including Emmanuel Fatal Audu, Permanent Secretary of the Ministry of Agriculture; Adetoro Adebanjo, Head of Consumer, Corporate, and Investment Banking at Stanbic IBTC; and Folusho Olaniyan, OON, Technical Director of BATNF, along with other dignitaries, government officials, and royal figures. All stakeholders reiterated their commitment to Nigeria’s agricultural development and food security initiatives.
Beneficiaries expressed gratitude, highlighting how the donated kilns will enhance production efficiency and unlock new growth opportunities. Many acknowledged that the improved capacity would enable them to scale their operations effectively.
The Lagos Farm Fair, organized in collaboration with the Lagos State Ministry of Agriculture, continues to serve as a vital platform for smallholder farmers to showcase their products, expand market access, and explore business opportunities. It remains a critical driver of food security efforts in Lagos, promoting agricultural development and fostering economic growth.
The Dangote Petroleum Refinery has taken delivery of four crude oil cargoes from the Nigerian National Petroleum Company Limited (NNPCL) under the new naira-for-crude sale agreement.
Officials from the refinery and the Federal Government confirmed on Tuesday that these deliveries took place over the past three weeks.
The crude supply marks the commencement of the Federal Government’s initiative to sell crude to local refineries in exchange for local currency. Sources familiar with the deal indicated that more cargoes are expected to arrive soon.
The Dangote Refinery, with a capacity of 650,000 barrels per day, is the first beneficiary of this arrangement and is preparing to sell refined petroleum products, including Premium Motor Spirit (PMS), directly to domestic dealers.
A source from the Technical Subcommittee on Domestic Sale of Crude Oil, who spoke on condition of anonymity, confirmed that further shipments would be delivered in the coming weeks, signaling the refinery’s role in Nigeria’s local petroleum market.
“The naira-for-crude deal has started, and we have received four cargoes so far,” the source stated. The first phase of the agreement will last six months, subject to renewal by the government.
The move comes as the refinery overcomes early challenges, including allegations from Dangote Group that international oil companies (IOCs) attempted to sabotage the project by refusing to supply crude. The IOCs had reportedly insisted on using foreign agents for crude sales, leading to inflated prices above market rates.
Despite intervention from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the group expressed concerns about the continued obstruction of crude supplies.
In response to these challenges, President Bola Tinubu’s administration proposed the sale of crude to local refineries in naira, a policy adopted by the Federal Executive Council. The government approved 450,000 barrels per day for local consumption, with the Dangote Refinery serving as a pilot for this initiative.
This development is expected to ease Nigeria’s dependence on fuel imports, which had created significant supply gaps. The refinery is now positioned to produce diesel, PMS, and aviation fuel for local consumption, which could potentially stabilize prices in the domestic market.
According to Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, the crude deliveries to Dangote will address the supply shortages that have plagued the NNPC and other marketers in recent months.
While domestic production is ramping up, analysts predict that global gasoline supply chains may face disruptions as Nigeria’s refining capacity reduces its reliance on imports. S&P Global Commodity Insights reported a sharp drop in petrol shipments to Nigeria in October, indicating the early effects of the Dangote refinery’s operations.
The refinery has supplied 317 million litres of PMS between September and mid-October and is expected to reach its target of producing 30 million litres per day in the coming months. The full impact of this increased domestic refining capacity on global oil markets is expected to be felt by early 2025.
Despite these positive developments, concerns remain among oil producers in Nigeria. The Independent Petroleum Producers Group (IPPG) has raised objections to being compelled to sell crude to local refineries, arguing that such an arrangement conflicts with the Petroleum Industry Act’s willing-buyer, willing-seller framework.
The group has called on NNPC to utilize its statutory crude allocation to address the supply shortfall, while also advocating for the protection of existing commercial agreements in the sector.
As Nigeria navigates the complexities of local crude supply and refining, the success of the naira-for-crude initiative will be critical in shaping the country’s energy future and reducing its reliance on imported fuel.
The Nigerian National Petroleum Company Limited (NNPC) has embarked on a significant expansion of Compressed Natural Gas (CNG) stations across the country, acquiring equipment for 40 new stations.
This move aligns with the Federal Government’s broader plan to establish 100 CNG stations within the next six months, marking a key step in transitioning to cleaner and more affordable energy alternatives.
Oluwagbemi Michael, Programme Director and Chief Executive Officer of the Presidential Compressed Natural Gas Initiative (PCNGI), revealed the plans during an event in Ogun State.
He noted that in the past year, NNPC has successfully established 12 CNG centres, with six each in Abuja and Lagos.
This announcement follows concerns from Nigerians about the limited number of CNG stations, which has slowed the adoption of CNG as a viable alternative to petrol.
However, Oluwagbemi reassured the public that the government, in collaboration with the Midstream and Downstream Gas Infrastructure Fund, is actively addressing the issue.
“Two weeks ago, about N122bn was released to six private organisations investing in the CNG distribution value chain,” Oluwagbemi stated, emphasising the government’s commitment to ensuring widespread CNG distribution infrastructure.
He acknowledged that infrastructure development requires careful planning, including design, procurement, and installation processes, but highlighted that progress is already underway. NNPC’s acquisition of additional equipment for 40 sites across Nigeria is a key milestone in this effort.
Private companies are also playing a crucial role in the expansion, with organisations like Bovas, NIPCO, Matrix, and MRS investing heavily in CNG infrastructure. Oluwagbemi expressed optimism, predicting a doubling of refuelling stations to 100 within the next six months.
In a bid to further boost CNG adoption, the Federal Government is distributing one million CNG conversion kits to commercial drivers, which is expected to generate up to 1.5 million additional CNG demands. A credit scheme has also been introduced to help private vehicle owners convert their petrol-powered cars to CNG, allowing them to repay the cost gradually.
Addressing concerns about the potential upgrade of existing petrol stations, Oluwagbemi confirmed that NNPC is working on 40 additional CNG stations, expected to be operational by next year. He added that the private sector’s involvement is essential for long-term success, as companies must see the business potential to drive investment.
With a focus on both infrastructure and investor engagement, Oluwagbemi assured Nigerians that CNG would soon be available across the country, offering a safer and cheaper alternative to petrol.
The exchange rate between the Naira and the US dollar, according to the data released on the FMDQ Security Exchange, the official forex trading portal, showed that the Naira closed at 1725.00 per $1 on Wednesday, October 23, 2024. Naira traded as high as 1640.00 to the dollar at the investors and exporters (I&E) window on Tuesday.
How much is a dollar to naira today in the black market?
Dollar to naira exchange rate today black market (Aboki dollar rate):
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N1720 and sell at N1725 on Tuesday 22nd October 2024, according to sources at Bureau De Change (BDC).
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN)
Black Market Exchange Rate Today
Buying Rate
N1720
Selling Rate
N1725
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN)
CBN Rate Today
Buying Rate
N1639
Selling Rate
N1640
Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.
Interbank rates have risen as a result of the financial markets’ persistent lack of liquidity. Money market rates have remained elevated to reflect the ongoing financing profile, with banks borrowing from the Central Bank to bridge the liquidity deficit.
The lack of major inflows into the financial system keeps interbank rates high, increasing the return on money market deposit accounts. Futureview Financial Services Limited reported a liquidity balance of N773.48 billion on Tuesday, down from N814.64 billion the previous day, reflecting main drivers of money market rates.
Cowry Asset Limited, an investment banking business, revealed that Nigeria’s interbank borrowing rate (NIBOR) fell across all maturities, indicating better liquidity in the banking sector.
But key money market rates, such as the Open Repo Rate (OPR) and Overnight Lending Rate (O/N), increased by 0.11% each, closing at 32.36% and 32.61%, respectively.
Analysts also said Nigerian Interbank Treasury Bills True Yield saw an upward movement across most maturities, while the average secondary market yield on T-bills moderated by 0.03%, settling at 24.14%.
The Nigerian naira fell deeper into the ongoing exchange rate crisis as the foreign money shortage worsened. The majority of analysts’ estimates for the exchange rate outlook are positive, with the argument that the naira is significantly overvalued—though not as severely as the Apex Bank asserted.
This week, the naira shed N53 in two trading sessions to end at N1,653 in Nigeria’s autonomous foreign exchange market, indicating that the market may become hot in the absence of an FX auction.
The market predicts that the Central Bank of Nigeria (CBN) would sell US dollars to approved dealer banks in order to alleviate FX liquidity constraints in the official window. According to analysts, the naira exchange rate has reached a point that the Central Bank is concerned about.
FX spot data from the FMDQ platform showed that the naira depreciated by 3.11%, closing at ₦1,653.02 per US dollar at the official market on Tuesday. At the same time, the naira fell in the parallel market to close at ₦1,725 to the US dollar as FX demand for invisible foreign payments continues to outpace FX liquidity in the alternative markets.
In a note, FSDH observed that there has been an observable improvement in the sources of Forex inflows over the past quarters, yet FX pressures remain. Analysts noted that the economy recorded a trade surplus of US$8.9 billion in H1 2024, a 45.2% increase compared to US$6.1 billion in H2 2023, adding that the high-interest-rate environment has boosted portfolio investment inflows into Nigeria.
As a result, Nigeria’s external reserves have been rising, although this has come at the expense of a depreciating Naira. The CBN’s current focus on reserve accretion is aimed at boosting confidence in the FX market, but this posture is likely to shift in Q4 2024, FSDH said.
“Looking ahead to Q4 2024, we expect the exchange rate to close the year around N1,560/US$. With the festive season approaching and added pressure in the FX market, we anticipate an increase in Forex inflows, driven by hikes in policy rates and increased FX interventions by the CBN, aimed at maintaining a stable exchange rate”, the investment firm said.
Despite unsettled issues with the Nigerian authorities, analysts stay positive on naira for crude oil sales to Dangote Refinery. “The Naira for Crude Initiative, which kicks off on October 1st, 2024, is expected to further mitigate Forex risks,” analysts said, as they maintain a positive outlook for the Naira in Q4 2024.
Today, oil prices continued to rise as traders grew more optimistic about the stability of supply in the Middle East amid tensions between Israel and Iran. Brent crude increased to $75.85, while WTI rose to $72.24.
Meanwhile, gold reached a new record high, driven by safe-haven buying due to uncertainties surrounding the U.S. elections and ongoing conflicts in the Middle East. Currently, gold is trading at approximately $2,760.40 per ounce.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Strictly Necessary Cookies
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.
