Microsoft’s upcoming launch of autonomous AI agents in November 2024 is set to change how businesses operate by automating routine tasks with minimal human involvement. These AI agents, powered by Copilot Studio—a platform combining Microsoft’s own AI models with OpenAI’s—will enhance productivity by managing tasks like client enquiries, lead generation, and inventory control.
The vision, as articulated by Microsoft’s Charles Lamanna, is for each employee to have their own personalised Copilot AI agent, acting as the interface to interact with various AI tools, streamlining processes and reducing human intervention. This development comes as part of a broader trend in the AI field, with other tech giants like Meta also making strides in autonomous AI.
Meta’s Self-Taught Evaluator, an AI model that trains using AI-generated data, further highlights the industry’s shift towards minimising human input in AI development. This reduces reliance on processes like Reinforcement Learning from Human Feedback (RLHF), pushing AI closer to fully autonomous capabilities.
Both Microsoft and Meta’s advancements aim to reshape the AI landscape, positioning these technologies as powerful tools for businesses looking to optimise their operations and increase efficiency.
In a recent development, the Department of State Security (DSS) has replaced President Bola Tinubu’s Chief Security Officer, Adegboyega Fasasi, with Attanda Lawal.
The transition was confirmed by sources within the presidential villa and approved by the Director General of the DSS, Tosin Ajayi.
Attanda Lawal, who holds the position of Deputy Director in the DSS, is currently attending a senior management course at the National Institute for Policy and Strategic Studies (NIPSS) in Jos, Plateau State.
Contrary to speculations of misconduct, sources revealed that Fasasi’s reassignment is part of routine administrative practice.
“He is proceeding on a regular strategic course, and it’s standard procedure within the system,” a source clarified.
The President has also endorsed the DSS new positing.
Haldane McCall Plc, a leading real estate and hospitality group in West Africa, is set to list its shares on the Main Board of the Nigerian Exchange Limited (NGX).
The company, renowned for its Suru Express Hotels and Suru Homes brands, will introduce its 3.122 billion ordinary shares at 50 kobo each, priced at N3.84 per share.
This listing will elevate NGX’s market capitalisation by N11.98 billion.
The company’s shares will be listed by introduction, a method that allows the company to join the market without issuing new shares or raising capital immediately. The stockbrokers for the listing are Finmal Finance Services Limited, with approval granted on October 10.
Established on March 27, 2012, Haldane McCall Plc has a strong presence in Nigeria’s real estate market, with a portfolio that includes luxury residential apartments in Ikeja GRA, Lagos. The group continues to hold prime properties in the upscale area for future development.
As part of its strategic focus, the company has streamlined its operations, choosing to concentrate on real estate and hospitality, following interventions by the Central Bank of Nigeria (CBN). In the medium term, Haldane McCall Plc aims to develop 45 budget hotels under its Suru Express brand and build 100 units of low-cost housing to support the Federal Government’s affordable housing initiative.
To drive this initiative, the company has acquired a large expanse of land in Lagos for the development of affordable residential estates, positioning itself as a major player in West Africa’s real estate and hospitality sectors.
In a significant move towards sustainability, MTN Nigeria Communications Plc has announced the launch of innovative biodegradable SIM cards made from recycled paper.
This initiative is part of the company’s “Project Zero,” which aims to cut greenhouse gas emissions and achieve net-zero emissions by 2040.
The new eco-friendly SIM cards, while retaining the robust feel of traditional plastic SIMs, are designed to reduce the carbon footprint per card by an impressive 60%. Furthermore, they will diminish plastic waste by a staggering 90% per card, addressing the pressing issue of e-waste in Nigeria.
With over 200 million SIM cards in circulation nationwide, MTN Nigeria alone contributes more than 80 million. According to the UN’s fourth Global E-waste Monitor (GEM), Nigeria generated 500,000 metric tons of e-waste in 2022, much of which is attributed to discarded SIM cards that often end up in landfills and waterways, posing a threat to the environment.
Adekemi Adisa, MTN Nigeria’s General Manager of Sustainability and Shared Value, noted the substantial environmental impact of traditional SIM card manufacturing processes. “Paper is more recyclable, biodegradable, and not as harmful to the environment,” she stated. “Plastics don’t have that same cycle.”
MTN’s biodegradable SIM cards aim to mitigate pollution, reduce carbon emissions during production and disposal, and address environmental concerns linked to plastic SIM cards, which have limited recycling options. Tobe Okigbo, MTN’s Chief Corporate Services and Sustainability Officer, expressed the company’s commitment to environmental responsibility, stating, “Our new eco-friendly SIM cards represent part of our continuous commitment to reducing waste and supporting local Nigerian vendors while integrating sustainability into our operations and the daily lives of the people.”
The rollout of these SIM cards will commence in select MTN stores in Lagos and Abuja, with the aspiration of making them widely accessible to customers. SecureID, the company that has been manufacturing SIMs for MTN since 2016, will also produce these eco-friendly options.
This initiative aligns MTN Nigeria with a global trend, as several telecom companies have started transitioning to eco-friendly SIMs. Vodafone initiated this trend in 2021 with the launch of eco-SIM cards made from recycled plastic, while MTN Rwanda introduced bioSIMs earlier this year, made from 100% Forest Stewardship Council (FSC) certified paper.
As part of a broader effort within the global telecom sector to cut carbon emissions, John Giusti, Chief Regulatory Officer for GSMA, stated, “Most mobile operators around the world are already taking concrete actions to rapidly cut their carbon emissions over the next decade.”
MTN Nigeria’s launch of biodegradable SIM cards marks a pivotal step towards a more sustainable future in telecommunications, reinforcing the company’s dedication to eco-responsibility and its commitment to positively impacting the environment.
The Global Energy Alliance for People and Planet (GEAPP), supported by the Bezos Earth Fund and the Rockefeller Foundation, is launching a solar mini-grid project in Nigeria to combat the country’s chronic power shortages. This initiative seeks to provide reliable energy to underserved communities and boost productivity across the nation.
Founded in 2021, GEAPP, in collaboration with the Ikea Foundation, completed its first interconnected mini-grid in December, with two additional grids under construction and funding secured for a fourth. These solar-powered mini-grids, operated by private developers, supplement the inconsistent national grid, helping to ensure continuous power for both homes and businesses.
GEAPP’s Demand Aggregation for Renewable Technology (DART) program plays a key role by consolidating the needs of multiple developers, which lowers the costs of solar equipment. The program also manages a $25 million finance facility that allows developers to obtain equipment in dollars while repaying in local currency once they begin generating revenue.
Fauzia Okediji, utility innovation manager at GEAPP, highlights the impact of this initiative, saying, “Underserved communities need reliable power for both homes and businesses.” Similarly, Muhammad Wakil, GEAPP’s Nigeria country lead, emphasizes the broader potential of this model, stating, “We need hundreds or thousands of projects like this across Nigeria to end energy poverty. We’ve proven it’s a viable business model.”
Nigeria’s Ongoing Power Struggles
Nigeria faces some of the worst electricity access issues globally, with 86 million people completely disconnected from the grid, while the rest of its 230 million population struggles with limited and unreliable supply. The national grid delivers only 4,000 megawatts of electricity—just a fraction of South Africa’s output, despite Nigeria’s much larger population. Frequent outages and grid collapses have deepened the country’s energy crisis, with nine total grid collapses so far this year, three of which occurred in the last week alone.
Harnessing Solar Power Potential
Nigeria, with its abundant sunlight averaging six hours daily, has immense potential for solar energy. Estimates suggest that the country could generate up to 427,000 megawatts from solar power alone. In addition to GEAPP’s efforts, the Rural Electrification Agency (REA) is set to launch a new $750 million rural electricity project next month, funded by the World Bank, aimed at providing electricity to an additional 17.5 million Nigerians.
This combination of global partnerships, private sector initiatives, and government programs offers hope for resolving Nigeria’s long-standing energy challenges and driving economic growth across the nation.
Iya Onyi and Sunny Bobo, the two major local food vendors at my work place, were my go-to when I started working in 2020. The food was not only delicious and prepared in hygienic conditions, but also extremely affordable.
Back then, buying lunch from these vendors was a wise decision – you could fill your belly and save money at the same time. There were even times when their customers formed long queues, and in response to the overwhelming demand, they had to cook twice or even more to meet everyone’s needs.
This trend wasn’t unique to my workplace. Friends at other offices had similar experiences, where the need to prepare lunch or even have breakfast before leaving for work didn’t seem like a priority. The money they had in their wallets and bags were enough to get them through the day. In fact, heading out to grab a meal at a nearby restaurant after a busy day was an easy, affordable way to unwind.
But fast forward to today, and things have changed. Inflation has hit every aspect of daily life, from food prices, transportation costs, rent, and utilities have skyrocketed. Now, more than ever, working professionals are seeking alternative ways to cut costs, and one of the most effective solutions has been embracing the lunchbox.
As work resumes on Monday morning, while standing at a bus stop, I noticed something interesting; most of the passengers waiting with me were carrying two bags. Just like me, they had their work bags and lunchboxes.
Curious, I struck up a conversation with a young woman juggling both bags. “Omo, it’s cooler ministry now,” she said with a tired smile. “Who go dey buy food wey expensive like say dem wan kill us?”
Her words resonated with everyone nearby. The thought of spending N2,000 on a meal that wouldn’t even satisfy a primary school child was too much for many of us. “The N2,000 food no go reach anywhere,” another passenger chimed in. “I fit use that money buy rice, go cook, chop am well, and still get something left for tomorrow.”
This is the reality many professionals and non-professionals are living today. As prices continue to climb, packing lunch has become a necessity. While grabbing food from your favorite vendor may be convenient, it’s no longer a sustainable option for the everyday worker trying to manage their budget.
However, this trend towards meal prepping and lunchbox adventures isn’t just about survival, it is also about taking control of what we eat. Preparing meals at home gives people the freedom to plan healthier, more balanced meals while also being mindful of portions.
Many have found joy in experimenting with recipes, turning what used to be a simple task into a creative process.
For some, it’s become a matter of pride. They’ve mastered the art of preparing affordable, nutritious meals that stretch over several days. Whether it’s a simple pot of jollof rice, stir-fried vegetables, or even leftovers from the weekend, the lunchbox is making a strong comeback.
In an economy where every naira counts, the decision to bring your own food to work goes beyond just saving money, it is a small but meaningful way to take control of your daily life.
While we cannot predict how long inflation will last, one thing is certain: the lunchbox, once considered a relic of schooldays, has now become a symbol of financial savviness and resilience in challenging times.
For Those New To Meal Prepping, Here Are A Few Tips To Get Started:
1. Plan your meals: Create a weekly menu that includes meals you can easily prepare in bulk. Rice, beans, and soups are great options for this.
2. Prep in advance: Spend your Sunday afternoon prepping ingredients or even cooking your meals for the week. It saves time on busy mornings.
3. Invest in good containers: Airtight containers keep food fresh and are easier to transport.
4. Experiment with leftovers: Don’t let extra food go to waste. Repurpose leftovers into new dishes for the next day.
By embracing the lunchbox lifestyle, working professionals are proving that even in the face of inflation, it’s possible to stay ahead without compromising on quality or taste.
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 1730.00 per $1 on Monday, October 21, 2024. Naira traded as high as 1652.00 to the dollar at the investors and exporters (I&E) window on Monday.
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 N1730 on Sunday 20th 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
N1730
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN)
CBN Rate Today
Buying Rate
N1651
Selling Rate
N1652
Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.
The U.S. Citizenship and Immigration Services (USCIS) updates its guidelines for the EB-1 visa, making the immigration process easier for highly skilled professionals. These changes focus on simplifying the criteria for proving “extraordinary ability,” they benefit individuals in fields such as science, arts, business, education, and sports.
The EB-1 visa, known as the Extraordinary Ability Permanent Residence visa, provides a quicker route to a green card for those who can demonstrate exceptional achievements in their industries. It also allows applicants to include their spouses and children in the application process.
Greater Recognition of Team-Based Achievements
A key update in the new guidelines is the recognition of team-based contributions. Previously, individual accomplishments were the primary focus of the visa process, but USCIS now acknowledges that many significant advancements come from teamwork. Professionals who contribute to award-winning software, AI projects, scientific research, or successful sports teams can now include these team-based achievements as valid evidence of extraordinary ability.
Engineers involved in groundbreaking technology, researchers working on globally recognized projects, or athletes on winning teams now find it easier to qualify under these updated criteria. This change reflects the reality of modern work environments, where collaboration drives many successes.
Application Process and Costs
For those applying under the EB-1 category, filing Form I-140, Immigrant Petition for Alien Workers, costs $700. Applicants in the EB-1A category can self-petition, while in other cases, employers often cover this fee.
These updates mark a shift in USCIS policy, recognizing the importance of collaborative efforts. By expanding the criteria to include team-based accomplishments, the changes create opportunities for a wider range of professionals. This new approach allows researchers, athletes, and engineers to highlight their contributions in team settings, and it aims to attract top talent across various fields, enhancing the U.S. workforce and benefiting society as a whole.
Global oil and gas companies are set to increase their investments in fossil fuel exploration by more than 60% by next year, compared to the low levels seen during the 2020 pandemic, according to new data from industry experts. Analysts from Wood Mackenzie, a leading oil and gas consultancy, attribute the surge in investments to a slower-than-expected transition to renewable energy sources.
The report highlights that oil demand may remain robust for longer than initially predicted, prompting major energy companies to ramp up exploration activities. “The main driver has been the dawning realization that the transition is unfolding more slowly than expected, implying that oil and gas demand may be stronger for longer,” Wood Mackenzie analysts stated.
This shift is particularly evident among European oil giants like Shell and BP, who have recently scaled back their aggressive plans to transition to renewable energy. Both companies had previously committed to reducing their reliance on traditional fossil fuels as part of the global push towards cleaner energy, but are now refocusing on their core oil and gas businesses to address production gaps and boost cash flow.
American oil majors and some emerging global players are also pursuing mergers and acquisitions (M&A) to strengthen their upstream portfolios, with more consolidation expected in 2025. BusinessDay’s findings reveal that large oil firms are reinvesting up to 50% of their income on average into exploration and production activities. At the same time, these companies are returning between 35% and 60% of their profits to shareholders in the form of dividends and share buybacks.
“Companies are coalescing around an average reinvestment rate of 50 percent, again assuming $75 per barrel for Brent crude, with major oil companies investing slightly more, while national oil companies (NOCs) invest slightly less,” Wood Mackenzie analysts noted.
Wood Mackenzie also highlighted that a few companies with major development projects are reinvesting up to 80% of their cash flow, which could lead to asset sales to fund shareholder distributions.
The consultancy pointed out that the upstream oil and gas sector has consistently delivered higher returns, historically ranging from 15% to 20%, compared to the renewable energy sector, where projects typically yield returns of up to 8%.
Despite the high-risk nature of offshore exploration, which can take up to five years to develop and another decade to see significant returns, oil and gas exploration continues to be a reliable profit generator for energy majors. As these companies adapt to evolving market conditions, their strategic reinvestments signal a renewed focus on fossil fuel exploration amid an energy transition that is progressing at a slower pace than anticipated.
According to Uzoma Dozie, Founder and CEO of Sparkle, a Nigerian digital bank, Nigeria is on course to lead Africa in open banking. Dozie points out that preparations for implementing this transformative banking system are progressing quickly, positioning Nigeria ahead of other African nations.
Uzoma highlights that Nigeria is making significant progress in preparing for open banking, positioning itself ahead of other African nations. He notes that the Central Bank of Nigeria (CBN) is actively working with key stakeholders to ensure a smooth implementation of the system. “We are ahead of the curve compared to other African countries,” Uzoma says, predicting that Nigeria will be fully operational with open banking by mid-2025.
Dozie explains that open banking is set to open significant opportunities in Nigeria’s financial sector. By enabling secure access to customer data, it facilitates more lending opportunities for small businesses, which are often underserved by traditional banks.
Small and medium enterprises (SMEs) typically struggle to access loans due to insufficient financial data. Open banking allows banks and smaller financial institutions to access this data, making it easier to extend credit.
“More data builds trust, and trust reduces the cost of lending,” Dozie notes. “With better access to financial data, banks can improve their services for both individuals and small businesses.”
Dozie also highlights how open banking can streamline processes for businesses like Uber, allowing faster account setups for drivers through automated systems. “With open banking, Uber can open business accounts for drivers instantly, without needing them to visit a physical location,” he explains.
While open banking promises to transform Nigeria’s financial services, it also faces challenges, especially around regulation and public awareness.
Dozie stresses that collaboration among stakeholders is key to overcoming these obstacles. “The main hurdle will always be coordination and collaboration, particularly in Nigeria. Legislation and public education are critical for ensuring open banking’s success,” he says.
Addressing concerns about data security, Dozie emphasizes that open banking operates under strict trust and security protocols to protect customer data.
He adds that open banking strengthens Nigeria’s data privacy laws by embedding strong privacy protections into the system.
Breaking down the concept, Dozie describes open banking as a system that allows financial institutions to securely share customer data, with the customer’s consent, using standardized protocols. “Open banking is like the USB-C of financial services—it standardizes and secures data sharing between banks,” he says.
This system empowers customers by giving them control over their data, allowing them to authorize their bank to share it with other financial institutions, driving innovation and competition.
“Open banking puts customers in control of their data, and banks can use this data to make faster, better lending decisions,” Dozie adds. This is particularly helpful for small businesses that lack detailed financial histories.
Nigeria becomes the first African country to establish an open banking framework after the CBN issues operational guidelines on March 7, 2023. These guidelines outline how banks and financial institutions access and manage customer data, making Nigeria a pioneer in the open banking space.
Open banking allows the sharing of customer-authorized data between banks and third-party firms, such as fintech companies, through Application Programming Interfaces (APIs).
Once customers grant consent, third-party companies can access their data via the bank’s API, paving the way for greater innovation in financial services.
As Nigeria moves toward full adoption of open banking, the country is set to lead a financial revolution that will reshape how banking services are provided across Africa.
The Central Bank of Nigeria (CBN) sold $60 million to approved dealer deposit money banks in an unusual FX auction held last week to prevent the currency rate from crossing the red line.
The Nigerian FX market experienced increased dollar liquidity in the interbank NAFEM market, despite a continuing US dollar shortfall and growing demand for foreign exchange. AIICO Capital Limited said that the central bank intervened once, selling around $60 million at ₦1,540.
Data from the FMDQ platform indicated that the volume of US dollars on the supply side rose. The spike reduced forex supplies, as the official market exchange rate had already reached N1,660.
Overall, the naira appreciated by 2.47% week-on-week, closing at ₦1,600.78 in the NAFEM window after banks released N92.4 billion to buy $60 million from CBN.
On policy side, the CBN appears to have dumped its re-introduced retail Dutch Auction System aimed to remove excessive intermediation in the forex sales to end users. Unfortunately, demand which printed at $1.1 billion at the first Dutch auction call overwhelmed the authority.
“FX sales of that magnitude can crash the external reserves”, a Broadstreet financial expert told MarketForces Africa, adding that the CBN may not be opened to continue with such huge bids.
Post Dutch FX auction sales in August, the authority’s US dollar sales to authorised dealer banks have been minimal, with CBN selling $544 million to banks in Sept. In Oct, FX sales to banks has been on decline. In the past week, the CBN has sold $110 million to boost liquidity level in the foreign currency market.
The Nigerian Exchange’s (NGX) equities market capitalization increased by N3.3 trillion to N59.43 trillion week on week following the IPO of Aradel Holdings PLC.
Cowry Asset Limited warned investors in a note that despite macroeconomic challenges, notably the announcement of September’s inflation figures, which showed consumer price inflation climb to 32.70%, the local exchange remains bullish.
Stockbrokers said the deteriorating consumer price index, mostly due to ongoing increases in the food index, which accounts for more than 51% of Nigeria’s inflation basket, did nothing to dampen market confidence. The market index, or All-Share Index (ASI), rose 0.47% to settle at 98,070.23 points on Friday, boosted by Aradel Holdings Plc’s milestone debut.
A spate of stockbrokers reported in independent reports that the NGX market capitalisation increased by N3.3 trillion, or 5.95%, week on week to N59.43 trillion, citing figures from the home bourse.
Despite this remarkable increase, market breadth remained negative, with 42 stocks falling and 34 rising this week. Cowry Asset Limited stated in a report that while the mixed mood reflected underlying macroeconomic challenges, the year-to-date return was a good 31.16%, lagging the annual inflation rate.
Last week, Aradel Holdings Plc listed 4.34 billion shares at N702.69 per share through a ‘Listing by Introduction’. “This positive momentum, propelled by Aradel’s addition, helped maintain investor confidence, reinforcing the oil and gas sector’s participation in the equity market,” Cowry Asset Limited said.
Trading patterns revealed that equities market momentum weakened, resulting in lower traded volumes fueled by rebalancing activities across small, mid, and large-cap stocks.
As a result, the weekly trade value uptrend by 134.5% week-on-week to N73.89 billion, while the traded volumes this week maintained another week of decline by 51.2% week-on-week to 1.45 billion shares, all executed in 39,546 deals—a 6.91% decrease from the previous week.
Sectoral performance was largely in the positive region, as three out of the five sectors tracked closed northward. The Consumer Goods index gained 1.42%, followed by the Oil & Gas index and the Industrial index, which recorded gains of 1.08% and 0.04% week on week.
The oil and gas sector benefitted significantly from Aradel’s entry, reinforcing investor confidence in the sector. Cowry Asset Limited said these positive performances were driven by TRANSPOWER, MECURE, DANGSUGAR, OANDO, ETERNA, and SCOA, respectively.
On the other hand, investors continued their portfolio rebalancing in the week as they dumped financial stocks from the mix. Consequently, the Banking and Insurance indices were the laggards for the week, as they declined by 0.51% and 1.23% week on week.
These negative performances come on the back of a sell-off in REGALINS, INTENEGINS, ROYALEX, FIDELITYBNK, UBA, and JAIZBANK. TRANSPOWER (19%), MECURE (19%), DANGSUGAR (13%), SCOA (11%), and GOLDEN BREWERIES (10%) emerged as the top spots of attraction for equity investors in the week.
REGALINS (15%), TRIPPLE GEE (15%), CAVERTON (9%), ABCTRANS (9%), and VITAFOAM (9%) were the top losers in that manner for the week.
Cowry Asset Limited said market sentiment is expected to remain positive as investors anticipate more Q3 earnings reports. The market has already reacted favourably to several impressive Q3 releases, providing insight into potential year-end performance.
The naira rose by 2.4% week on week as the Central Bank of Nigeria (CBN) supported the local currency with $60 million in the official market. The exchange rate rose due to increased FX liquidity in the Nigerian independent foreign exchange market, which was aided by the CBN’s FX auction for banks.
The Central Bank of Nigeria sold $60 million at ₦1,540 to deposit money banks after the currency fell to N1,660 on Thursday. According to spot data from the FMDQ platform, the naira increased by 2.47% week-on-week, ending at ₦1,600.78 in the Nigerian independent foreign exchange window.
Despite domestic economic pressures, external reserves continued to rise, increasing by US$206.16 million week on week to US$38.88 billion. Nigeria’s foreign reserves have shown favorable trends during seven consecutive week of accretion partly due to FX purchases from Foreign Portfolio Investors (FPIs), Cordros Capital Limited said in a note.
Total turnover in Nigeria’s independent FX market fell 33.1% to USD1.22 billion on Thursday, according to separate data from investment firms. According to analysts, trades were made between N1,540 and N1,682 throughout the time, as the naira continued to weaken due to limited FX liquidity.
In the forwards market, naira rates fell by 1.5% to N1,699.15 for the one-month contract, -1.4% to N1,770.51 for the three-month contract, and -0.4% to N1,862.89.
However, FX rate for one year forward contract appreciated by 0.9% to N2, 067.69. Exchange rate worsened further in the parallel market as demand and supply imbalance extended through the week in the currency market. Demand continues to overshadowed the volume of foreign currency available in the black market, and this shifted exchange rate above N1,700 per US dollar.
Analysts said seasonal demand for foreign currency could worsened spot rate in the informal currency market except the Apex Bank sells US dollar to Bureau de Change (BDC) operators in the alternative currency market that accommodates invisible FX payments.
“Barring any shock, we anticipate the naira will remain less volatile in the short term as the CBN maintains intervention in the FX market. This will also be supported by the improved FPI inflows into the FX market due to carry trade opportunities in the capital market”, analysts at Cordros Capital Limited said.
Based on data by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria’s crude oil production (including condensates) declined by 1.7% to 1.54 million b/d in September from 1.57 mb/d after five consecutive months of increase.
Analysts attributed the decline in the period to lower production volume recorded across the Forcados, Akpo, Qua Iboe, Odudu and Escravos production terminals. Production volume from Forcados declined by 19% in September, Akpo dipped by 11.8% in the same period, and Qua Iboe supply fell by 7.8% while output from Odudu and Escravos terminals declined by 4.7% and 3.5%, respectively.
On the other hand, the Brass terminal production volume inched higher by +18.8% in September; Bonny output also increased by 11.3%, while output from Agbami terminal rose by 2.5% in the same period. Cordros Capital Limited states that overall crude oil production remains below pre-COVID levels of 2.14 million b/d in the first quarter of 2022.
The lower production is attributed to the lingering effects of insecurity and infrastructure decay, as well as low investment in the sector exacerbated by the exit of international oil companies (IOCs) and unresolved issues regarding the approval of oil asset transfers.
“While progress is still underway as regards the fight against crude oil theft and pipeline vandalism, we believe that challenges plaguing the sector still pose downside risks to crude oil production in the near term,” analysts said. Oil prices dropped by 7% amidst uncertainties in the global commodities market.
The price decline in the oil market was fueled by concerns over demand from a slowdown in Chinese economy growth and reduced supply risks from Middle Eastern conflicts. On Friday, Brent crude was priced at $73.55 per barrel, while WTI sat around $69.70.
Elsewhere, gold surged past the significant $2,700-per-ounce mark, reaching around $2,731.40, driven by rising tensions in the Middle East and uncertainty surrounding the U.S. elections.
Money market rates are falling, if only modestly, due to relative improvement in financial sector liquidity. Interbank rates remained high, although liquidity levels in the financial sector increased following a series of inflows reported last week.
The liquidity constraint in the financial sector persisted despite coupon inflows, big Remita inflows, and other major inflows targeted at balancing foreign exchange settlements and Remita outflows, according to AIICO Capital Limited.
Cowry Asset Limited analysts said in a letter to investors that the Nigerian interbank offered rate (NIBOR) decreased across all maturities, indicating better liquidity in the banking sector. Banks have borrowed from the Apex Bank to support their activities. Cash-rich lenders have also requested higher interest rates to meet interbank needs.
Overall, the interbank rates declined week-on-week. Specifically, the Overnight Policy Rate (OPR) fell by 3 bps to 32.33%, while the Overnight Rate (OVN) decreased by 44 bps to 32.56%, data from the FMDQ platform confirmed.
“We expect interbank rates to trade in a mixed range due to next week’s FGN bond auction and the upcoming FAAC credits”, AIICO Capital Limited told investors in a note.
Inflows from FGN bond coupon payments were N28.22 billion. As expected, inflows were inadequate to sustain system liquidity, leading the OVN rate to stay high.
Analysts highlighted that the average liquidity position fell, finishing at a net short position of N1.51 trillion, down from N643.66 billion the week before.
The liquidity balance in the financial markets was boosted by N1.5 trillion in daily average standing lending facility injections.
Afrinvest Limited stated that this reversed the daily average outflow of N47.6 billion from the Central Bank of Nigeria’s standing deposit facility (SDF) window.
The money market expects rate to slow further due to expectation that N873.13 billion FAAC credits will increase liquidity balance in the new week.
The sum is expected to offset debits for the FGN bond primary market auction. In the new week, the Debt Management Office is expected to conduct monthly bond auction where the authority plan to sell N200 billion worth of FGN papers to investors.
In the Nigerian equities market, investors valued the combined market capitalization of the top five listed banks at approximately N5.2 trillion, equivalent to $3.23 billion based on an exchange rate of N1,600 per US dollar.
Ahead of the release of the third-quarter earnings for 2024, investors approached bank stocks cautiously. The banking index experienced a slight dip due to portfolio rebalancing, according to data from the Nigerian Exchange.
Analysts predict that Nigerian banks with strong earnings prospects, minimal key man risks, and a solid dividend history will continue to attract buying interest. Over the past week, these major banks saw a net capital gain of about N2.45 billion. Among them, two recorded gains, one posted a loss, while two remained mostly unchanged.
Data from the Nigerian Exchange revealed that GTCO Plc retained its position as the largest bank by market capitalization, closing at N1.471 trillion on Friday. The stock price of GTCO saw an increase of N29.431 billion over the week, ending at N50 per share, up from N49 at the start of the week.
Zenith Bank Plc, headquartered on Ajose Adeogun Street, followed closely behind GTCO. Valued at N1.175 trillion, Zenith Bank’s stock traded flat week-on-week, maintaining a unit price of N37.5.
FBN Holdings reclaimed the third position among Tier-1 banks. Investors remained on the sidelines after the group announced plans for a name change and an upcoming dividend declaration at its scheduled shareholders’ meeting in November. By Friday’s close, the bank’s market value stood at N933.277 billion.
UBA was the sole decliner among the top-tier banks, losing approximately N38 billion due to a drop in its share price. At the close of trading, UBA’s market capitalization stood at N868.665 billion, ahead of its third-quarter earnings release.
Access Holdings, the largest Nigerian bank by total assets, had the lowest market capitalization among the five, valued at N710.904 billion by the end of the week. The bank experienced a slight uptick in demand, driven by the recent announcement of a 45 kobo interim dividend payout to shareholders.
The average yield on Nigeria’s Eurobonds increased by 7 basis points in the international capital market as sell pressures spurred foreign portfolio investors’ low appetite.
Investors continue to factor in worries about the country’s macroeconomic situation, as well as the recent inflation rate increase. According to some experts, disinflation might push the Central Bank to raise benchmark interest rates again following September’s disappointing statistics.
The National Bureau of Statistics (NBS) announced that consumer price inflation showed a strong turnaround, with the headline index rising to 32.70% in September 2024, up from 32.19% in August.
This is the first increase in three months, contradicting experts’ forecasts of ongoing price pressure reductions despite the Central Bank of Nigeria’s strong monetary policy tightening.
In the local bond market, negative trading activity on Federal Government of Nigeria notes resulted in a five basis rise in the average yield to 19.30%, experts stated in a note.
The Eurobonds market performed middling this week amid US Fed rate cuts, with sideways interest in Nigeria, Angola, and Egypt papers.
Analysts predict an entry of hot money into the African market to catch relatively high yields on foreign borrowing following the next rate decrease in the United States.
Last week, sell pressure across the short, mid and long ends of the yield curve in Nigeria’s sovereign Eurobond resulted in a 7 basis points increase, leading to an average yield of 9.44%, Cowry Asset Limited said in a report.
Emerging market currencies and debt faced challenges from rising U.S. rates and election uncertainties. A key development was the IMF’s potential reduction of penalty fees for distressed nations, which could significantly impact the market, AIICO Capital Limited told investors in a note.
Analysts said sovereign defaults are expected to rise, but Ghana’s currency rating improved, and Saudi-Egypt private sector deals lifted sentiment.
The average yield on Nigerian Treasury bills increased to around 24.2% in the secondary market as local deposit money banks sold investment instruments to fulfill financing needs.
According to AIICO Capital, the majority of selling interest was centered on short- and medium-dated securities as market players attempted to satisfy their financing requirements.
The liquidity constraint in the financial markets has remained robust, with money market rates running over 32% since the central bank raised the standing lending portfolio rate to 31.7% in September.
Banks, at the heart of the financial markets equation, went inward in their hunt for money by selling off treasury bill holdings. This pushed the average yield higher, but financing pressures only eased with minor rate changes; short-term benchmark interest rates remained high.
The Overnight Policy Rate (OPR) declined by 3 basis points to 32.33%, while the Overnight Rate (OVN) dropped by 44 basis points to 32.56%. The market’s liquidity balance remained low ahead of the Central Bank of Nigeria’s (CBN) primary market auction in the next week.
The market predicts cautious trade with a mixed tone, as there will be a Treasury bills auction for ₦374.67 billion across standard tenors this week.
In its note, Cordros Capital Limited said the average yield expanded by 100 basis points to 24.2% in the Nigerian Treasury bills segment and inched higher by 1bps to 25.9% in the OMO bills segment.
“We believe the projection of a better liquidity position next week will boost demand for bills, thereby driving down yields in the secondary market”, analysts said.
Nigerian Interbank Treasury Bills True Yield (NITTY) experienced upward movement across all maturities, while the average secondary market yield on T-bills rose, settling at 24.16% due to sell-sentiment, Cowry Asset Limited added.
The liquidity balance in the financial system was lifted high by N28.22 billion inflows from FGN bond coupon payments. Analysts said the inflows were insufficient to provide support system liquidity, causing the overnight lending rate to remain elevated.
Consequently, the average liquidity position declined, closing at a net short position of N1.51 trillion from a net short position of N643.66 billion in the previous week.
The Federal Government of Nigeria (FGN) bonds secondary market concluded trading sessions with selloffs as fixed-interest securities dealers built short positions ahead of the Debt Management Office’s (DMO) monthly primary market auction.
According to the debt office bond schedule, the authority will offer investors N200 billion in local borrowing instruments at Monday’s main market auction.
According to investment banking businesses, the authorities will reopen 19.30% FGN APR 2029 bonds and 18.50% FGN FEB 2031 bonds, however the FGN MAY 2033 bond will no longer be issued.
The bond market was mixed to negative, with sideways interest observed in specific maturities, notably April 2029, February 2031, May 2033, March 2050, and June 2053 bonds.
Most traders opened short positions ahead of this month’s bond auction amid the disappointing consumer price index, which surged by +55 basis points to 32.70% year on year, Cordros Capital Limited said in a note.
Due to the decision to trim holdings ahead of the auction and reduce bond supply, the average yield inched higher by 20 basis points to 19.3%.
Across the benchmark curve, the average yield expanded at the short (+35bps), mid (+22bps), and long (+17bps) segments, according to analysts notes.
The yield surge was noted to have been driven by sell pressures from investors taking out profit on the MAR-2025 (+130bps), FEB-2031 (+58bps) bonds, and JUN-2038 (+156bps), respectively.
“We believe the direction of yields in the secondary market will be shaped by the outcome of this month’s FGN bond auction scheduled to hold on Monday,” analysts at Cordros Capital Limited said.
Analysts said the medium-term expectation of elevated yields is contingent on anticipated monetary policy administration globally and domestically and sustained imbalances in the demand and supply dynamics.
Nigeria Is facing Worst Unemployment Crisis - World Bank
The World Bank has attributed Nigeria’s record-high inflation between 2015 and 2023 to a series of macroeconomic policy mistakes by the nation’s fiscal and monetary authorities. In its recent Nigeria Development Update (NDU), the global financial institution detailed how these missteps led to inflation peaking at a 28-year high.
Before 2015, Nigeria’s inflation rate was in the single digits, similar to other emerging economies. However, according to the World Bank, several key policy errors shifted the economic landscape. These include the Central Bank of Nigeria’s (CBN) excessive financing of fiscal deficits, large-scale subsidized credit to households and businesses, restrictions on access to foreign exchange (FX) for importing over 900 products, maintaining an overvalued exchange rate, and unbudgeted fiscal deficits.
The World Bank explained that starting in 2015, the CBN moved away from its core responsibility of price stability, focusing instead on growth initiatives by providing large loans at subsidized rates to businesses and households. At the same time, it restricted FX access for over 900 product lines, further exacerbating economic instability.
Large, unbudgeted fiscal deficits and the CBN’s use of deficit monetization—through Ways and Means Advances—added to the problem. These actions flooded the economy with cash, eroding confidence in the naira and contributing to inflation well before energy and foreign exchange reforms were implemented. By June 2024, inflation had reached 24.19%, a level not seen in nearly three decades, marking 19 consecutive months of inflationary increases.
The report also highlights the shift in CBN policy since the departure of former Governor Godwin Emefiele. During his tenure, the CBN provided trillions of naira in development financing to the private sector. The current CBN Governor, Yemi Cardoso, estimates that the bank’s development finance initiatives totaled around N10 trillion.
However, under Cardoso’s leadership, the CBN has halted such fiscal interventions, acknowledging that the bank lacks the capacity to continue financing fiscal deficits. Key policies from the previous era, such as the ban on FX access for certain imports, have also been reversed. For example, in 2023, the CBN lifted restrictions on FX for 43 items that were previously banned from the official FX market.
The most significant change, however, has been the unification of the various FX market segments. This policy, enacted in June 2023, led to the naira losing over 100% of its value.
On the fiscal side, Nigeria’s Minister of Finance, Chief Wale Edun, has stated that the government will not rely on Ways and Means financing to cover fiscal deficits, unlike the previous administration, which borrowed over N22 trillion through this method—far exceeding the limits set by the Fiscal Responsibility Act.
The World Bank’s report underscores the importance of sound fiscal and monetary policies in stabilizing the economy, highlighting the need for continued reform to prevent further inflationary pressures.
Nigerians may soon face intensified power outages as a result of outdated infrastructure, according to Sule Abdulaziz, the Managing Director of the Transmission Company of Nigeria (TCN).
Speaking on Sunday Politics aired by Channels Television, Abdulaziz highlighted that much of Nigeria’s power transmission equipment has been neglected for decades, with many systems dating back 40 to 50 years.
“The transmission system has suffered from underinvestment for many years. Most of the equipment in use is outdated, making it difficult for the system to function optimally, attributing frequent grid failures to the age of the infrastructure.’’ ,” Abdulaziz remarked
To mitigate future power disruptions, Abdulaziz disclosed that TCN is working on a backup plan, funded by the World Bank, to create a “scatter system” that will reduce the frequency of blackouts.
The project, already 70% complete, is expected to be finished within two years. He further noted that the recent milestone was celebrated in Gwagwalada, Abuja.
“We are trying to upgrade all our transmission lines. However, given the financial constraints, we are seeking private sector funding to complement government efforts,” Abdulaziz explained.
In collaboration with the presidency, the Ministry of Power is also seeking approval for a “super grid” project. This new grid will allow for an alternative transmission line in the event of a fault, significantly enhancing Nigeria’s power stability.
Abdulaziz remains optimistic about achieving reliable electricity supply across the nation within the next five years, pending necessary investments and upgrades.
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