The global crypto market value fell by 0.15% to $2.32 trillion in the latest lackluster pricing of digital assets. The market has been heated by sell pressures, excluding activity on the bellwethers.
According to CoinMarketCap.com, certain tiny currencies have taken a hit, while overall crypto market volume has fallen by 3.20% in the previous 24 hours to $80.5 billion.
Bitcoin (BTC-USD) is still battling to reach $68,000 following its lackluster price yesterday. However, as of the time of writing, the majority of the top ten cryptocurrencies were trading positively. The overall volume in DeFi is presently $4.65 billion, accounting for 5.78% of the total 24-hour volume traded on the crypto market.
Also, the volume of all stable coins is now $74.64 billion, which is 92.71% of the total crypto market 24-hour volume. Most major digital assets were softer late Monday with bitcoin (BTC-USD) falling below $68,000.
The CoinDesk Market Index, which tracks 126 digital assets, fell 1.2% in the past 24 hours. Bitcoin, the most popular cryptocurrency, fell 1.2% to $67,689 with 24-hour trading volume more than doubling to $39.5 billion, according to CoinMarketCap data.
Ethereum (ETH-USD), the second-largest digital asset, dropped 0.8% to $2,678. BNB (BNB-USD), the third-largest digital asset by market value excluding stablecoins, eased 0.1%, while Solana (SOL-USD), the fourth-largest, advanced 4.2%.
XRP (XRP-USD) gained 0.6% and Dogecoin (DOGE-USD) added 1.6%, while Cardano (ADA-USD) fell 0.2%.
MTN Nigeria PLC, a telecommunications major, has warned of a potential shutdown if rates are not hiked to accommodate mounting operational expenses.
Karl Toriola, the company’s CEO, delivered the warning during a tour of MTN’s facilities in Ibeju-Lekki, Lagos, with Fellows from the Media Innovation Programme. Toriola stated that the telecommunications business is under tremendous financial hardship, particularly due to rising fuel prices necessary to power base transceiver stations.
“There should be no delusion; if the tariff doesn’t go up, we will shut down,” he said, underscoring the urgency of tariff adjustments to reflect current economic realities.
The CEO stated that MTN, which has invested N2.6 billion in corporate social responsibility, according to its 2023 Sustainability Report, is now functioning on earnings collected over two decades.
However, he emphasized that this is unsustainable. “We must return the industry to profitability,” Toriola stated, noting that the company’s reserves are diminishing.
Earlier this year, telecom carriers announced the first pricing increase in 11 years, citing the necessity to manage growing expenses while maintaining service quality. Without such an increase, they said, the sector’s financial sustainability and service standards will continue to deteriorate.
Toriola also pointed out that MTN, once one of Nigeria’s top corporate taxpayers, has seen its tax contributions decline due to the financial challenges. In the first half of 2024, MTN reported a staggering N519.1 billion loss, largely attributed to foreign exchange losses from the naira’s devaluation and high inflation.
In addition, Toriola revealed that MTN may suspend Unstructured Supplementary Service Data (USSD) banking services due to a N250 billion debt owed by Nigerian banks. ‘We are seeking regulatory approval to halt support for USSD services used for banking transactions unless the debt is resolved and tariffs are adjusted,” he said.
Despite the challenges, Toriola expressed optimism that the new Central Bank of Nigeria Governor, Yemi Cardoso, and the Executive Vice Chairman of the Nigerian Communications Commission, Dr. Aminu Maida, would step in to help resolve the financial crisis.
He concluded by urging swift action from the government and regulators, stressing the critical role the telecom industry plays in supporting Nigeria’s economy.
The Nigerian Exchange (NGX) increased by around N120 billion on Tuesday, as equities investors placed large bets on growth and value firms on the trading platform during the market’s results festival.
Stockbrokers said in separate notes that the stock market ended today’s trading on a positive note, with key performance indicators up by 20 basis points, or 0.20%.
Year to date, the market index, or All-Share Index, gained 197.78 basis points to end at 98,694.80, driven by purchasing activity. The local market continued its upward trend, fueled by bargain hunting in medium and big cap companies such as UACN, GTCO, OANDO, and others.
Nonetheless, market activity was uneven, as the overall amount traded climbed by 45.92%, the total value dropped by 9.88%, according to data from the local bourse.
In its market update, Atlass Portfolios Limited told investors that approximately 591.01 million units valued at₦24,844.81 million were transacted across 6,987 deals.
CHAMPION was the most traded stock in terms of volume, accounting for 43.20% of the total volume traded in the equities market. Other volume drivers in the market include JAPAULGOLD (18.42%), UBA (7.61%), FCMB (3.24%), and CILEASING (2.86%).
SEPLAT emerged as the most traded stock in value terms, accounting for 78.41% of the total value of trades conducted on the exchange on Tuesday. TRANSCOHOT topped the advancers’ chart for today with a price appreciation of 9.28 percent, trailed by WAPIC. Data showed that WAPIC rose by +9.09% while UPDC gained +6.90%.
Other gainers include UNIVINSURE (+5.88%), ABCTRANS (+4.65%), UACN (+3.96%), and seventeen others. Despite the bargain hunting, fifteen stocks depreciated on the Nigerian Exchange. JOHNHOLT was the top loser, with a price depreciation of -9.84%. Other decliners include TANTALIZER (-9.84%), DANGSUGAR (-8.82%), REGALINS (-7.14%), HONYFLOUR (-5.81%), and SEPLAT (-0.67%).
Today, the market breadth closed positive, recording 23 gainers and 15 losers. However, sectoral performance in the market was mixed, with two of the five major sectors recording losses.
The consumer goods and oil & gas sectors dropped by 0.70% and 0.62%, respectively. On the other hand, the insurance and banking sectors posted gains of 1.22% and 0.91%, respectively, while the industrial sector closed flat.
Overall, the equities market capitalisation of the Nigerian Exchange gained₦119.95 billion to close at₦59.92 trillion on Tuesday as investors raised bets.
Crude oil prices were under pressure early Tuesday in the global commodities market, as demand and supply worries remained. Brent sank to $73.52 per barrel, while the US benchmark West Texas Intermediate dropped to $69.50 per barrel, as Chinese demand remained weak.
China, the world’s top oil importer, launched a stimulus package to alleviate persistent troubles in the real estate sector, but analysts say the measures fell short of sector expectations.
To ease the contraction in the real estate industry and housing market, the nation announced a 25 basis point cut in 1- and 5-year loan interest rates, which serve as the standard for corporate and real estate loans.
The contraction in the real estate sector and housing market, both of which negatively impact China’s economic growth, put pressure on crude prices by supporting predictions of declining demand in the country.
According to data, crude oil markets strengthened yesterday with Brent settling almost 1.7% higher on the day. Lingering tension in the Middle East continues to provide support as the market awaits Israel’s response to Iran’s recent attack, ING said in a note.
In addition, a Hezbollah drone strike near the Israeli Prime Minister’s private residence will not have helped to ease tensions, analysts added.
On the demand side, banks in China cut their loan prime rates, which would be welcome news for borrowers. While the cut was unsurprising, the reduction was slightly larger than the market expected.
OPEC+ has revealed plan to gradually bring 2.2 million b/d of oil supply back onto the market next year. ING said this should leave the market in surplus, which will not only keep pressure on flat prices through next year but should also mean further weakness in time spreads.
“Essentially with the market returning to a sizeable surplus, we should at least see the front end of the curve moving into contango”, ING said.
Meanwhile, Israel continues its attacks in northern Gaza despite numerous calls for a ceasefire. At least 20 Palestinians were killed early Tuesday in two separate Israeli army attacks in northern Gaza.
Witnesses said drones are surrounding the Khalifa Bin Zayed School, with officials threatening to kill if they do not evacuate. Concerns that the war could spread over a wider area and disrupt oil supply routes continue to limit further price falls.
President Bola Tinubu has announced that Nigerian motorists may now purchase a liter of Premium Motor Spirit, better known as petrol, for N1,000 per litre. The president also stated that the equivalent of one litre of fuel, a Standard Cubic Meter of Compressed Natural Gas, can be obtained for N200.
Tinubu said this while meeting with executives of the Nigerian Independent Petroleum Company, led by director Mr Ramesh Kasangra, at the State House in Abuja on Tuesday, according to a statement issued by the president’s Special Adviser on Information and Strategy, Bayo Onanuga, titled, “President Tinubu meets NIPCO executives, commends investments in the CNG sector.”
“Nigeria’s motorists can buy petrol at N1,000 per litre or equivalent gas per Standard Cubic Meter at N200. We have also introduced incentives for commercial motorists to convert from petrol to gas” free of cost,” Tinubu said.
The statement read partly, “The President commended NIPCO’s contributions to the nation’s energy transition efforts, particularly its support for the Presidential Compressed Natural Gas Initiative (PCNGI).
“During the meeting, President Tinubu acknowledged NIPCO’s role as a critical player in enhancing the adoption of CNG as an alternative fuel, noting that such investments align with his administration’s energy security and economic diversification strategy.
“He emphasised the importance of public-private partnerships in driving the transition to cleaner and more affordable energy solutions for Nigerians.
“The President lauded NIPCO’s efforts in promoting and supporting the “Switch to CNG” campaign, which has been instrumental in boosting public awareness and providing affordable CNG conversion kits even before the official kickoff of the Presidential CNG Initiative.”
NIPCO said in January 2024 that it had invested more than N100 billion on pipelines allowing easy access to CNG from existing main trunks across its operating states, as well as in the construction of CNG stations around the country.
Tinubu stated that the PCNGI has helped reduce Nigeria’s “reliance on petrol and cut fuel costs for consumers,” and that CNG, as a cleaner and more cheaper fuel, lowers the carbon footprint and saves customers considerable fuel expenditures.
The president emphasized his administration’s commitment to creating a favorable environment for private sector investment and extending Nigeria’s CNG infrastructure to boost energy efficiency and economic growth.
He further encouraged NIPCO to continue its innovative approach to CNG expansion while supporting the government’s broader goals in the energy sector.
In his remarks, the company’s director thanked the president for his steadfast support of the CNG sector, as he expressed NIPCO’s commitment to furthering the partnership with the government to ensure Nigeria’s energy transition remains on track.
He also assured Tinubu that the company was ready to invest in infrastructure to make CNG more accessible nationwide. According to him, NIPCO has been a key player in various sectors of Nigeria for over four decades and will continue to believe in Nigeria for the long term.
The International Monetary Fund (IMF) has forecasted that Nigeria’s economy will grow by 3.2% in 2025, while inflation is expected to decrease to 25% that same year. This was revealed in the IMF’s latest World Economic Outlook (WEO) report, which also projects global economic growth to remain steady at 3.2% in 2025, unchanged from 2024.
Globally, the updated growth forecast reflects a slight 0.1% reduction from the IMF’s earlier estimate in July 2024. For Nigeria, the IMF’s revised GDP growth estimate for 2025 marks a 0.2% increase from its previous July 2024 projection. In contrast, GDP growth for 2024 is expected to hold at 2.9%, a downgrade from earlier projections.
Regarding inflation, the IMF expects Nigeria’s inflation rate to stabilize at 25% in 2025, with a further decline to 14% by 2029.
Economic Growth in Sub-Saharan Africa
The IMF has also revised its forecast for Sub-Saharan Africa, predicting a 4.2% growth rate for 2025, which represents a downward revision compared to the 4.4% forecasted in April 2024. The report attributes this adjustment to challenges such as climate-induced weather disruptions, supply chain constraints, and slower growth in key economies like Nigeria. Additionally, ongoing conflicts in Sudan are expected to cause a 26% contraction in the country’s economy.
The report highlights, “In sub-Saharan Africa, GDP growth is projected to rise from an estimated 3.6% in 2023 to 4.2% in 2025, as the negative effects of earlier weather shocks diminish and supply issues ease.”
It further notes that, compared to April’s forecast, the regional growth outlook has been lowered by 0.2 percentage points for 2024, but slightly raised by 0.1 percentage points for 2025. In addition to Sudan’s contraction, Nigeria’s slower-than-expected economic activity in early 2024 contributed to the downward revision.
Insights on Nigeria’s Economy
Nigeria’s economy demonstrated resilience in the first half of 2024, growing by 2.98% in the first quarter and 3.19% in the second quarter, despite inflationary pressures and continued depreciation of the Naira. This growth rate exceeded 2023 levels, reflecting the country’s ability to weather macroeconomic shocks, including rising petrol prices and the highest inflation rate in 28 years.
Nigeria’s inflation rate finally began to decelerate in July 2024, following 19 consecutive months of increases dating back to January 2023. However, after a brief two-month slowdown, inflation surged again due to a petrol price hike by the Nigerian National Petroleum Corporation Limited (NNPCL) in September.
Consumers in Nigeria may soon face higher costs for telecommunications services as the federal government plans to raise the consumption tax on telecoms from 7.5% to 12.5%.
This 125% increase, detailed in a new bill titled A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks Relating to Taxation and Enact the Nigeria Tax Act, is part of a broader tax reform agenda.
The proposed bill also seeks to introduce excise duties on various services, including telecommunications, gaming, gambling, lotteries, and betting.
According to the bill, “Services, including telecommunications, gaming, gambling, betting, and lotteries however described, provided in Nigeria shall be charged with duties of excise at the rates specified under the Tenth Schedule to this Act.”
The increase in taxes will apply to the full amount charged by service providers, effectively raising the cost of these services for consumers. Industry stakeholders have voiced concerns about the adverse effects this could have on both telecom companies and subscribers.
“This tax is going to hurt the telecom industry and subscribers alike, they are essentially trying to kill the industry by imposing more burdens on it.” said Adeolu Ogunbanjo, President of the National Association of Telecoms Subscribers.
Telecom operators argue they are already weighed down by excessive taxation. According to the global telecom body GSMA, the Nigerian telecom industry faces over 50 different taxes, creating significant financial strain.
Operators warn that the new tax burden will likely be passed on to consumers, leading to higher prices for phone calls, data services, and other telecom offerings.
The reintroduction of excise duty on telecommunications services is not without controversy. In 2023, a five percent excise duty on telecom services was suspended following widespread opposition. At the time, Zainab Ahmed, the Minister of Finance, Budget, and National Planning, explained that the President had the authority to fix the rate, which was set at five percent for GSM services. However, the telecom sector successfully pushed back against its implementation.
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria, has called on the new Minister of Communications, Innovation and Digital Economy, Bosun Tijani, to address the ongoing issue of multiple taxation in the sector and to permanently eliminate excise duties on telecom services. He stressed the need for government intervention to ensure the telecom industry is not overburdened.
Former Executive Vice Chairman of the Nigeria Communications Commission (NCC), Umar Danbatta, also advocated for the exemption of telecom services from excise duties, arguing that telecommunications are a necessity, not a luxury, and impact over 220 million Nigerians.
In response to the proposed tax hike, the National Association of Telecoms Subscribers plans to revive its legal challenge against the government’s reintroduction of excise duties.
“We are going to return to court,” Ogunbanjo affirmed, adding that the earlier legal action was paused after the suspension of the five percent duty, but with the new proposal, they intend to push forward with the case.
If enacted, this tax increase will likely result in higher costs for Nigeria’s 220 million telecom users, compounding the financial pressure on millions who rely on these essential services.
Germany is committing €4 billion to green energy projects across Africa by 2030, with Nigeria set to be a key beneficiary. This was confirmed by Dr. Felix Ale, Director of Media and Corporate Communications at the National Space Research and Development Agency, in a statement on Tuesday.
The announcement follows the German Federal Foreign Office H2 Diplo Study Tour, during which Nigeria’s Minister of Innovation, Science, and Technology, Chief Uche Nnaji, emphasized the significance of this collaboration. Nnaji explained that the initiative aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritizes economic diversification, job creation, and sustainable development.
Nnaji also noted that the partnership builds on earlier discussions between President Tinubu and German Chancellor Olaf Scholz, which resulted in a €500 million renewable energy and gas agreement. Key German ministries, including the Federal Ministry of Research and Education and the Federal Ministry for Economic Cooperation and Development, are involved in advancing green hydrogen initiatives that will decarbonize industries and strengthen Nigeria’s energy security.
Germany, which aims for carbon neutrality by 2045, plans to import green hydrogen from Nigeria, a move that positions Nigeria as a leader in Africa’s green energy sector. Nnaji highlighted the potential of green hydrogen as a future economic driver, offering Nigeria opportunities to attract foreign investment, create jobs, and expand its energy exports, particularly to Europe.
The minister concluded that this partnership not only supports Nigeria’s industrial growth but also strengthens its role in the global green hydrogen market.
President Bola Tinubu has outlined a stark choice for Nigerian drivers amidst escalating fuel prices: pay ₦1,000 per litre for Premium Motor Spirit (PMS) or opt for the cheaper alternative of Compressed Natural Gas (CNG) at ₦200 per Standard Cubic Metre (SCM).
This announcement was made during a meeting with top executives of the Nigerian Independent Petroleum Company (NIPCO) at the State House in Abuja.
The meeting, held on Tuesday, saw President Tinubu commend NIPCO’s investments in the CNG sector, especially its contribution to the Presidential Compressed Natural Gas Initiative (PCNGI).
Special Adviser on Information and Strategy, Bayo Onanuga, released a statement titled “President Tinubu Meets NIPCO Executives, Commends Investments in the CNG Sector.”
According to the statement, “Nigeria’s motorists can buy petrol at ₦1,000 per litre or switch to CNG, which costs just ₦200 per SCM. We’ve also introduced incentives for commercial drivers to convert their vehicles from petrol to gas, free of charge,”
He praised NIPCO’s role in driving Nigeria’s energy transition and promoting the adoption of CNG as an affordable and cleaner alternative fuel.
The President emphasised that public-private partnerships are critical to the success of this transition and highlighted NIPCO’s efforts in supporting the “Switch to CNG” campaign.
This campaign has not only raised public awareness but has also made affordable CNG conversion kits available, even ahead of the official launch of the Presidential CNG Initiative.
The statement further stated that ‘’ these efforts are in line with the administration’s energy security and economic diversification goals’’.
President Tinubu reiterated the government’s commitment to making energy solutions more affordable for Nigerians, noting that the shift to CNG would reduce the financial burden on motorists while promoting cleaner energy sources.
Reports have it that this initiative is seen as a key part of Nigeria’s broader strategy to address the nation’s energy challenges and reduce reliance on costly petrol imports.
In a significant development for Nigeria’s international trade, the Consul-General of the United States Consulate in Lagos, Will Stevens, announces that the annual trade between Nigeria and the U.S. has reached $10 billion.
Speaking at the opening ceremony of a workshop on the African Growth and Opportunity Act (AGOA), Stevens highlights the growing partnership between the two countries, emphasizing the nearly equal balance of trade—about $5 billion from each nation.
The workshop, aimed at empowering Nigerian businesses, government agencies, and trade stakeholders, focuses on optimizing the benefits of AGOA, a U.S. trade initiative that offers duty-free access to the U.S. market for over 1,800 products from sub-Saharan Africa. Stevens stresses the importance of expanding Nigerian exports beyond oil and gas, which currently dominate AGOA-related trade. He encourages Nigerian businesses to explore the vast U.S. market, noting that the country represents 27% of the global economy.
While oil products constitute a large portion of Nigeria’s exports under AGOA, Stevens points out the need to diversify Nigeria’s economic activities, which could significantly increase non-oil exports to the U.S. “If you can succeed in the U.S. market, you can succeed globally,” Stevens remarks, urging Nigerian exporters to seize the opportunity to penetrate diverse sectors.
Deputy U.S. Trade Representative for Africa, Osvaldo Gomez-Martinez, also underscores the immense potential for Nigeria to expand its non-oil exports under AGOA. He emphasizes that as one of Africa’s largest economies, Nigeria is well-positioned to take advantage of duty-free access to the U.S. market, especially in manufacturing and agriculture.
The event also features insights from the Director-General of the Small and Medium Enterprises Development Agency of Nigeria, Charles Odii, who acknowledges the challenges faced by Nigerian SMEs but highlights government efforts to support business growth, including financial support initiatives. The AGOA workshop serves as a platform for further strengthening Nigeria’s trade with the U.S., with the broader aim of fostering sustainable economic growth for both nations.
AGOA remains a key framework for enhancing Nigeria’s export potential, providing opportunities for businesses to thrive in global markets while supporting broader economic goals.
The Federal Government of Nigeria has announced a suspension of all Liquefied Petroleum Gas (LPG) exports, effective November 1, 2024, in a bid to address the soaring cost of cooking gas and ease the burden on households.
This directive, disclosed by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, aims to prioritise domestic supply and ensure affordability for Nigerians.
The decision followed a high-level meeting in Abuja between government officials and stakeholders from the LPG value chain. Louis Ibah, the Minister’s spokesman, made the announcement through an official statement, which highlighted the pressing issue of gas price hikes and their severe impact on Nigerian households.
Data from BusinessDay indicated a sharp rise in the average cost of refilling a 12.5kg cylinder of cooking gas, which surged from ₦9,162.11 in July 2023 to ₦14,261.57 in July 2024. Despite earlier interventions, prices have continued to climb, with the current price per kilogram now reaching ₦1,500, up from ₦1,100–₦1,250 in previous months.
The government had previously set up a high-level committee in November 2023, led by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, to find solutions to the rising prices. However, with continued fluctuations, the government has now taken the drastic step of halting LPG exports.
In the new directive, Ekpo instructed all producers, including the Nigerian National Petroleum Company Limited (NNPCL), to cease LPG exports or import an equivalent amount at cost-reflective prices if exports occur. Additionally, the NMDPRA has been tasked with collaborating with industry stakeholders to develop a domestic pricing framework within 90 days.
This framework will be based on local production costs, moving away from the current system of indexing prices against international markets such as those in the Americas and Asia.
The Minister’s statement highlighted that pegging prices to external markets had led to Nigerians paying exorbitant rates for locally produced LPG. As a long-term solution, the government plans to develop storage, blending, and distribution facilities over the next 12 months.
The export ban will remain in place until Nigeria achieves sufficient market supply and stabilises prices.
Industry experts believe that this move will provide some relief to households struggling with the rising cost of living. By prioritising domestic supply and introducing a cost-reflective pricing model, more stable LPG prices are expected to emerge in the coming months.
“The government is deeply committed to ensuring Nigerians have access to cooking gas at affordable prices,” the statement read, underscoring the administration’s focus on addressing the rising cost of essential commodities.
Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings, reaffirmed its commitment to transforming the nation’s agricultural sector by providing access to finance, infrastructure, capacity building, and technology. The bank made this announcement during its 2024 Agribusiness Breakfast Summit, which was themed “Driving economic transformation through agro-processing: Building a sustainable future.”
The summit featured panel discussions and networking opportunities, providing a platform for key industry leaders to share insights and uncover opportunities in the agricultural value chain. The event also showcased the bank’s financial solutions designed to help agro-processors expand production while contributing to food security in Nigeria.
Wole Adeniyi, Chief Executive, Stanbic IBTC Bank, emphasised the importance of agriculture as a key contributor to Nigeria’s economy, providing millions of citizens with employment and significantly contributing to the nation’s Gross Domestic Product (GDP). He emphasised that agriculture’s potential extends beyond cultivation, with agro-processing offering vast opportunities for value addition, job creation, and export growth.
Wole stated, “The true potential of agriculture lies beyond cultivation – it is in value addition, transforming raw products into high-quality goods that can compete both locally and globally. Agro-processing has the power to unlock untapped potential, generate wealth, create jobs, and reduce post-harvest losses, positioning Nigeria as a leading agro-industrial hub in Africa. Despite the huge benefits the sector offers, the agro-industry faces a huge financing deficit of $182 billion according to the Nigeria Economic Summit Group (NESG) 2024 First Half Outlook Report, despite government efforts at boosting funding.”
Wole added that transforming the nation’s agriculture requires a multifaceted approach, which involves addressing issues such as infrastructure, access to finance, technology adoption, and capacity building and Stanbic IBTC Bank remains committed to building a sustainable future for Nigeria’s agriculture sector.
The summit also featured remarks from the Minister of Agriculture and Food Security, Senator Abubakar Kyari, represented by Engineer Adebiyi Michael, Director of Agribusiness and Market Development. He stressed the importance of collaboration between the public and private sectors to drive agro-processing, enhance local content, and improve access to capital. Kyari highlighted the government’s efforts in providing farmers with production inputs and machinery, while also working with financial institutions like Stanbic IBTC to make affordable credit available to agro-processors.
He said: “Amidst the declining global oil prices, the agricultural sector is gaining more attention, driving the government’s commitment to economic diversification, and boosting agricultural productivity for local and international markets. While we appreciate the role of the private sector in the transformation of the agricultural sector, the Ministry has continued to collaborate with financial institutions such as Stanbic IBTC Bank, in the provision of affordable credit to agro-processors, thereby transforming agriculture from being merely a developmental program into a profitable business sector.”
Corroborating the significance of the summit, Remy Osuagwu, Executive Director, Business and Commercial Banking, Stanbic IBTC Bank, noted: “The Stanbic IBTC 2024 Agribusiness Breakfast Summit reinforces the critical role that agro-processing plays in strengthening our agricultural value chain, improving food security, and creating sustainable wealth for our communities.
As a partner in Nigeria’s economic development, Stanbic IBTC Bank remains a force that supports agribusinesses, particularly the agro-processing sub-sector which we hope will drive the reduction of waste, growth of exports and overall expansion of agribusiness in Nigeria. With in-depth knowledge of the sector, Stanbic IBTC Bank provides solutions that enable players to unlock the full potential of their respective segments. From low-interest agricultural loans and asset financing for farm machinery to strategic partnerships and advisory services, we are here to support you every step of the way.”
Stanbic IBTC Bank continues to champion agricultural transformation in Nigeria by offering tailored solutions that drive growth and sustainability in the sector.
The Lagos Farm Fair implemented by the British American Tobacco Nigeria Foundation (BATN) in partnership with Stanbic IBTC Holdings, represented yet another significant step forward in establishing a sustainable and thriving agricultural landscape in Lagos. Held at the Police Grounds on Oba Akinjobi Way, GRA Lagos, the fair attracted a diverse and impressive crowd.
Participants ranged from experienced farmers and innovative agricultural startups to key industry stakeholders and interested members of the public. This year’s farm fair, organized to commemorate World Food Day stood out as a dynamic exhibition as farmers from across the region came together to showcase and sell a wide variety of fresh, locally grown produce.
Families and attendees enjoyed a vibrant atmosphere while purchasing high-quality fruits, vegetables, grains, and other farm products at affordable prices. The fair not only provided a platform for farmers to connect directly with consumers but also highlighted the importance of supporting local agriculture and sustainable farming practices. The event fostered a sense of community, with activities and exhibitions that engaged all ages.
“At Stanbic IBTC Holdings, we are deeply committed to fostering sustainable growth and innovation within Nigeria’s agricultural sector. Our proud partnership of the Lagos Farm Fair alongside the British American Tobacco Nigeria Foundation in collaboration with Lagos State Ministry of Agriculture & Food Systems supports the agricultural landscape’s development and thriving,” stated Eric Fajemisin, Executive Director, Corporate and Investment Banking, Stanbic IBTC Bank.
Eric elaborated that the event represents a crucial step forward, bringing key stakeholders together to share knowledge and forge partnerships to drive the industry forward. “We believe that by investing in agriculture, we are investing in the future of our nation, creating opportunities for growth, innovation, and sustainability.”
Stanbic IBTC Holdings is proud to have contributed to the success of the BATNF Lagos Farm Fair. Recognising agriculture’s role in economic development and food security, we are committed to supporting initiatives that drive growth within this vital sector.
We understand the transformative potential of events like the Farm Fair to motivate change, stimulate economic development, and enhance food security. Through our support, we aim to encourage the continuous advancement of the agricultural sector, ensuring it remains a cornerstone of sustainable development for Lagos and beyond.
The International Monetary Fund (IMF) has thrown its weight behind the Central Bank of Nigeria’s (CBN) recent monetary policy measures, particularly the interest rate hikes and foreign exchange reforms.
The IMF has described these steps as crucial for stabilising Nigeria’s economy amid persistent inflation and currency challenges.
Tobias Adrian, the IMF’s financial counsellor and director of monetary and capital markets, expressed this support during a press conference at the IMF/World Bank annual meetings in Washington D.C., where the Global Financial Stability Report was presented.
“Nigeria is a good example,” Adrian remarked. “The central bank has transitioned to an inflation-targeting regime and liberalised the exchange rate, which we welcome. The rate hikes have been appropriate given the challenges posed by high inflation, which remains around 30 percent.”
The IMF acknowledged that while global inflationary pressures are beginning to ease, many Nigerians continue to face significant hardships due to rising prices and the aftermath of severe floods. Adrian stressed that the CBN’s vigilance remains crucial to stabilising the economy and protecting against external shocks.
The CBN’s recent foreign exchange interventions were also commended. Adrian highlighted how these measures had helped improve Nigeria’s financial stability, though he emphasised the need for continued structural reforms to ensure sustainable growth. “There is more to be done on structural issues to enhance the growth outlook,” he said, referencing long-term economic resilience.
The IMF further noted the importance of strengthening Nigeria’s financial system, pointing to ongoing efforts to ensure that banks remain well-capitalised and operate under sound regulatory frameworks. “We are actively working with Nigerian authorities to build capacity in the banking sector, which is essential for economic stability,” Adrian added.
With the IMF’s endorsement of CBN’s policies, investor confidence in Nigeria’s economic direction is expected to grow, particularly as inflation stabilises globally and funding conditions for frontier markets like Nigeria improve. Adrian concluded by saying, “The CBN’s proactive steps provide a foundation for long-term macroeconomic stability.”
This backing from the IMF could bolster the CBN’s strategy as Nigeria grapples with inflation, fiscal challenges, and currency devaluation.
The Federal Government has introduced a new legislative bill aimed at exempting various essential goods and services from Value Added Tax (VAT), in an effort to reduce the financial burden on Nigerians.
The bill, titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, Instruments, and Related Matters,” was presented on October 4, 2024.
Among the goods listed for VAT exemption are baby products and locally manufactured sanitary towels, pads, and tampons, a move expected to make these items more affordable for the general public. Other exemptions include military hardware, arms, ammunition, and uniforms provided to the armed forces and security agencies.
Additionally, shared passenger road transport services will be exempt from VAT, which is aimed at reducing transportation costs for commuters. In the agricultural sector, equipment such as tractors and ploughs will also benefit from VAT relief, although individuals must initially pay the tax before applying for a refund from the authorities.
The bill further extends VAT exemptions to diplomatic missions, with goods and services supplied to diplomats for non-profit activities falling under the tax relief. Educational institutions conducting plays or performances will also benefit, as will government licenses, land or building transactions, and financial instruments like money or securities.
Supplies used in export processing or free trade zones for approved activities will similarly be VAT-free, unless the Minister of Finance issues an order in the Official Gazette to reimpose VAT on these items, granting the government flexibility to modify the exemptions in the future.
This initiative is part of the government’s broader strategy to ease economic pressures on citizens while supporting key sectors such as agriculture, transportation, and education.
The Federal Government reviews the compensation rates for crops and economic trees impacted by infrastructure projects across the country, aiming to ensure that landowners receive fair compensation for their losses.
Minister of Housing and Urban Development, Ahmed Dangiwa, announces this at the 2024 National Technical Development Forum (NTDF) on Land Administration in Abuja. The forum, themed “Review of Compensation Rates on Crops and Economic Trees for Project Affected Persons in Nigeria,” focuses on updating the compensation framework to reflect current economic conditions.
Dangiwa highlights that the existing rates, established in 2008, are outdated and no longer align with modern economic realities or international standards. “The Federal Government commits to ensuring compensation reflects the true market value of assets, particularly long-term investments like cocoa, oil palm, rubber, and cashew trees,” he states.
The review, supported by the Rural Access and Agricultural Marketing Program (RAAMP), aims to make the compensation process more just and transparent. Dangiwa emphasizes that crops and economic trees are valuable assets, providing income and holding cultural and emotional significance for affected communities.
He also notes that challenges arise under the Land Use Act of 1978, particularly in its implementation, leading to delays and inadequate compensation. The government works to address these issues, ensuring development projects uplift rather than impoverish those affected.
Dangiwa stresses the government’s responsibility to protect vulnerable groups, including women, the elderly, and marginalized communities. “We develop policies that balance infrastructure development with the protection of livelihoods and the environment,” he adds, reaffirming the administration’s commitment to equity and fairness in compensation.
The Federal Government secures N289.597 billion from its October 2024 bond auction, as reported by the Debt Management Office (DMO).
The auction, conducted on October 21, includes two reopened tranches of existing bonds: the 19.30% FGN APR 2029 (5-year bond) and the 18.50% FGN FEB 2031 (7-year bond).
Despite inflationary pressures, investor interest remains strong, leading to a higher-than-expected allotment.
Increased Allotment Reflects Strong Demand Initially, the government offers N180 billion, with N90 billion allocated to each bond. Despite offering less compared to September’s N190 billion, the total allotment for October rises to N289.597 billion, reflecting strong investor demand for government securities. The 5-year bond attracts N60.737 billion in subscriptions, while the 7-year bond sees a substantial increase with bids totaling N328.584 billion.
Total investor engagement reaches N389.321 billion in October, a significant jump from the N293.097 billion in September. This heightened participation suggests a preference for longer-term instruments, offering better returns in a high-interest-rate environment. Out of the total bids, N57.237 billion is allotted from the 5-year bond, while N232.360 billion is allocated from the 7-year bond.
The October allotment marks a 9.5% increase from September’s N264.527 billion, indicating that the government capitalizes on strong demand to meet its financing requirements.
Marginal Rates Rise Marginal rates also see an increase in the October auction, reflecting investor expectations for higher yields amid inflation and tighter monetary policies. The 5-year bond is allotted at a 20.75% marginal rate, up from 19.00% in September, marking a 9.2% rise. The 7-year bond experiences a marginal rate increase to 21.74%, compared to 19.99% in the previous month, reflecting an 8.8% rise.
These higher rates illustrate the growing challenge for the government in managing borrowing costs, as investors demand higher returns to compensate for inflationary risks.
Key Considerations The outcome of the October bond auction underscores the complex environment in which the government is securing financing. While the higher allotment demonstrates strong investor demand, the rise in marginal rates signals increasing borrowing costs. This trend could impact the government’s debt management strategy, especially if inflationary pressures and tighter monetary conditions persist.
The settlement date for the October auction is set for October 23, 2024. Managing borrowing costs effectively will be crucial for the government to maintain sustainable financing terms in the months ahead.
Legal professionals from Olisa Agbakoba Legal (OAL) express concerns over the N10 million fine outlined in Nigeria’s National Digital Economy and E-Governance Bill, currently under review by the National Assembly.
The bill aims to establish a legal framework for the digital economy, addressing areas such as electronic transactions, data protection, cybersecurity, and digital infrastructure.
The contentious provision imposes a N10 million fine for violations, applicable to public institutions, private entities, and individuals operating in the digital space. However, the lawyers argue that the fine is disproportionate to potential breaches and beyond the financial reach of many involved in the system, raising doubts about its enforceability.
In their review, the OAL lawyers propose alternative sanctions, including demotion, denial of promotion, or termination of employment. They also question the imposition of fines on public institutions, suggesting that holding the Chief Executive Officer accountable, potentially through removal, would be a more effective deterrent.
The bill’s Part 13, which grants supremacy over other laws in matters related to the digital economy, also raises concerns among the lawyers. They warn of potential regulatory conflicts between the National Information Technology Development Agency (NITDA) and other government bodies with overlapping authority, emphasizing that clearer delineation of roles is necessary to avoid jurisdictional disputes.
While acknowledging the bill’s potential to advance Nigeria’s digital transformation, the legal experts stress the need for foundational improvements in infrastructure, digital literacy, and cybersecurity. They argue that addressing these challenges will determine the bill’s success in positioning Nigeria as a leader in the global digital economy.
Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, meanwhile, highlights the bill’s importance during a recent media engagement in Abuja, stating that it would provide a comprehensive legal framework for Nigeria’s digital economy, with implementation planned across all six geopolitical zones once the bill becomes law.
The CEO of Rainoil Ltd, Dr. Gabriel Ogbeche, attributes the soaring petrol prices in Nigeria to the country’s weak exchange rate rather than fluctuations in crude oil prices.
In an interview on Channels Television’s Business Morning, Dr. Ogbeche explains that despite the deregulation of the petroleum sector in October, the devaluation of the Naira remains the primary factor behind rising fuel costs.
Dr. Ogbeche points out that two main factors influence fuel prices in Nigeria: the price of crude oil and the exchange rate of the Naira against the U.S. dollar. He emphasizes that while crude oil prices have remained relatively stable, the Naira’s significant depreciation has been the key driver of high petrol prices.
“Crude oil prices have fluctuated between $60 and $80 per barrel in recent years,” he notes. “However, the most significant issue affecting petrol prices is the exchange rate. The Naira’s sharp decline has made fuel more expensive, with the exchange rate having a greater impact than crude oil prices.”
Fuel prices surged past N1,000 per litre in October, according to Dr. Ogbeche, following the Nigerian National Petroleum Company Limited’s (NNPCL) decision to sell crude oil to the Dangote refinery in Naira. The National Bureau of Statistics (NBS) also reports that the average retail price of petrol in September 2024 reached N1,030.46, marking a 64.55% increase from the same period in 2023.
The spike in fuel costs comes after President Bola Tinubu’s announcement to end the fuel subsidy in May 2023, aiming for a market-based pricing structure. Additionally, the Central Bank of Nigeria’s unification of the foreign exchange market in June 2023 has led to the Naira losing over 50% of its value, further contributing to rising fuel prices.
Since petroleum products are priced in U.S. dollars, any depreciation in the Naira translates to higher fuel prices. The exchange rate currently hovers around N1,600 to the U.S. dollar.
The Chairman of the Manufacturers Association of Nigeria Export Promotion Group (MANEG), Odiri Erewa-Meggison, FCIS, has called for reinforced non-oil export incentives to support Nigeria’s manufacturing sector amidst ongoing economic challenges.
Speaking at the Group’s 7th Annual General Meeting (AGM) held on 9th October 2024, at the MAN House, Ikeja, Lagos. She emphasized the critical role of non-oil exports in driving a favorable trade balance for the Nigerian economy.
Addressing the theme of the AGM, “Targeting a Favorable Balance of Trade: The Role of Non-Oil Export Incentives for Manufacturers”, Erewa-Meggison stressed that the discussions were timely, given the adverse conditions facing manufacturers, including recent policy reforms, insecurity, foreign exchange scarcity, and escalating energy costs. Despite these challenges, she highlighted a 17.37% increase in the export value of manufactured goods in Q4 2023, showcasing the resilience of Nigerian manufacturers.
“We have endured one of the toughest periods in the history of Nigeria’s manufacturing sector, with mounting pressures from policy reforms, security concerns, and macroeconomic difficulties. Nonetheless, our members have shown remarkable dedication and professionalism,” Odiri remarked.
Since her appointment as MANEG Chairman in October 2023, Erewa-Meggison has led several initiatives aimed at increasing MANEG’s visibility and influence within the non-oil export space. Notably, she launched MANEG’s official website, enhancing communication, providing resources, and facilitating engagement with stakeholders at both local and international levels. This effort is part of a broader strategy to position MANEG as a key player in Nigeria’s non-oil export sector.
Under her leadership, MANEG has actively engaged with the Nigerian government, advocating for policies to support the growth of non-oil exports. These efforts have raised awareness of MANEG’s vital role in the economy, supported by the Group’s strategic media repositioning campaign, which has expanded its influence both domestically and internationally.
Erewa-Meggison also acknowledged the recent renovation of the MANEG Secretariat, sponsored by British American Tobacco Nigeria (BATN), and underscored the importance of staff welfare, announcing a salary upgrade for staff in recognition of their contributions to the Group’s operations.
During the AGM, Erewa-Meggison reiterated the need for government incentives to help manufacturers navigate high production costs and global competition. She noted the ongoing issue of unpaid export expansion grants to 39 exporters, some of which date back to 2009, and called for the total overhaul of the export grant process including a dedicated budgetary allocation which would send a clear signal to exporters that they remain top of mind for the government and help support exporters remain competitive on a global scale from a pricing perspective. . This, she emphasized, would enhance Nigeria’s global trade presence and generate local employment opportunities.
She commended the efforts of the Minister of Trade in opening international markets for Nigerian goods and stressed the importance of agencies such as the Nigerian Export Promotion Council (NEPC) and Customs in helping manufacturers meet global standards. While acknowledging the challenges of logistics and port congestion, she expressed optimism about ongoing reforms aimed at easing business operations and boosting Nigeria’s export potential.
Concluding her remarks, Erewa-Meggison reaffirmed her commitment to advancing MANEG’s advocacy for non-oil export incentives and encouraged members to remain resilient in their entrepreneurial pursuits despite the economic headwinds. She urged members to continue supporting the Group’s initiatives to drive growth in the sector.
The AGM also featured elections for new executive members, which Erewa-Meggison described as pivotal for shaping the future of MANEG. The event was further enriched by a keynote address from Professor Joseph Olusegun Ajibola, a distinguished economist and former banking executive, who offered valuable insights into how manufacturers can navigate Nigeria’s current economic landscape.
Looking ahead, under Erewa-Meggison’s leadership, MANEG is poised to continue driving innovation, resilience, and advocacy within Nigeria’s non-oil export sector.
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