Economic analysts project that the Central Bank of Nigeria (CBN) will generate approximately N50 billion by the end of 2024 through the newly introduced 0.005 percent cybersecurity levy on electronic transactions. Vincent Nwani, an economist and investment specialist, remarked, “The CBN is expected to raise N50 billion from the cybersecurity levy by 2024.”
Data from the Nigeria Inter-Bank Settlement System indicates that electronic payments totaled N987 trillion between 2022 and 2023.
By applying the 0.005 percent levy to this amount, the estimated revenue comes to about N49.35 billion.
He added that in 2022, electronic payments totalled N387tn, generating N19.35bn from the levy, while in 2023, with transactions soaring to N600tn, the revenue from the levy reached N30bn.
“For instance, we saw a remarkable 55 per cent surge in the total electronic payments, from N387tn in 2022 to N600tn in 2023 and the 2024 figure is projected at N999.9tn. At 0.005 per cent cyber security fees, the Nigerian government will earn N19.5bn for 2022, N30bn for 2023; 2024 will be equivalent to N50bn [projected figure] from its citizens,” he expounded.
Nwani also highlighted an increase in point-of-sale transactions, which surged by 27.85 per cent from N8.39tn in 2022 to N10.73tn in 2023, noting that PoS transactions cost Nigerians N214.6bn in 2023 due to the N100 fee on every N5,000 withdrawal.
“On the other hand, in 2023, the total value of PoS transactions surged to N10.73tn, up from N8.39tn in 2022, marking a notable 27.85 per cent increase. Additionally, a fee of N100 is charged for every N5,000 withdrawn via PoS, equating to two per cent of the withdrawal amount.
“POS transactions cost Nigerians a total of N214.6bn in 2023 and N167.8bn in 2022. This growing reliance on PoS and the associated charges reflect the broader economic effects of the cashless policy on the population,” the economist stated.
David Adonri, the Vice Chairman of Highcap Securities, also added, “The increase in electronic payments is driven by the CBN’s cashless policies and naira redesign. Despite the CBN’s contractionary monetary policy, the money supply continues to expand, which might push electronic payments even higher in 2024.
“With the projected rise in electronic payments to N999tn, the levy could indeed generate as much as N50bn for the government.”
Enacted under the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024, the 0.005 per cent levy, applies to all electronic transactions and is intended to fund the National Cybersecurity Fund managed by the Office of the National Security Adviser.
Despite initial resistance from President Bola Tinubu and the House of Representatives, who had called for a suspension and review of the policy, the CBN has restated its resolve to enforce the levy.
Short-term interest rates continued to climb in the money market due to ongoing liquidity pressure within the financial system. Although there have been outflows from auctions conducted by the apex bank, inflows from maturing instruments have remained limited.
Significant amounts have been withdrawn for FX auctions and the sale of Nigerian Treasury bills to local deposit money banks, which typically invest in short-term securities. These and other related outflows have kept the liquidity balance in the negative for an extended period.
As a result, several authorized dealer deposit money banks faced liquidity shortfalls, prompting market participants to seek funding through the Central Bank of Nigeria’s (CBN) Standing Lending Facility (SLF).
This decision kept interbank rates elevated in the double-digit range ahead of anticipated inflows from Federal Account Allocations, with no additional payment receipts from maturing instruments.
Following the apex bank’s removal of restrictions on banks accessing liquidity through its standing lending facility at a high rate, local deposit lenders have begun to utilize this option to bridge funding gaps.
Yesterday, Nigerian interbank borrowing rates increased across all tenors, reflecting a weakened liquidity balance in the financial system, as noted in an emailed update from Cowry Asset Limited.
Data from the FMDQ platform indicates that the open repo and overnight lending rates remained in the double digits, largely due to a lack of significant inflows to stabilize the financial system.
The open repo rate increased by 17 basis points to approximately 31.45%, while the overnight lending rate rose by 27 basis points to settle at 31.83%, according to reports from various investment banking firms.
Meanwhile, the Nigerian Interbank Treasury Bills True Yield showed a general downward trend across all maturities. Consequently, the average secondary market yield for T-bills increased by 0.45%, reaching 18.63%, driven by sell-side sentiment.
The Coca-Cola System in Nigeria, which consists of Coca-Cola Nigeria Limited and its authorized bottler, Nigeria Bottling Company (NBC), has announced plans to increase its investment in Nigeria.
In a statement, the business stated that over the next five years, with a predictable and conducive environment in place, the System intends to increase its investments in Nigeria to $1 billion.
The initiative extends the System’s long-standing participation in Nigerian communities. Coca-Cola Hellenic Bottling Company, also known as Nigerian Bottling Company in Nigeria, has invested $1.5 billion in the country over the last decade.
With today’s announcement, the Coca-Cola System plans to more than double its rate of investment over the next 5 years.
This investment underscores the Coca-Cola System’s continued confidence in the Nigerian market and its promising future economic prospects. The investment is expected to support various value chain areas, including suppliers, distributors, retailers, and recyclers.
The announcement was made at the State House in Nigeria, where a Coca-Cola System delegation was hosted by President Bola Ahmed Tinubu.
In addition to the Coca-Cola System leadership team in Nigeria, the delegation was comprised of international Coca-Cola System representatives: John Murphy, President and Chief Financial Officer of The Coca-Cola Company; Zoran Bogdanovic, Chief Executive Officer of Coca-Cola Hellenic Bottling Company; Henrique Braun, EVP and President, International Development of The Coca-Cola Company; Luisa Ortega, President of Coca-Cola’s Africa Operating Unit; and Naya Kalogeraki, Chief Operating Officer of Coca-Cola Hellenic Bottling Company.
Following the meeting, Murphy indicated that “the investment highlights our system’s efforts to drive scalable initiatives while also preserving the value of local relevance. Coca-Cola has been an integral part of the African continent for over 96 years and today’s investment in Nigeria reiterates our optimism about the continent.”
Bogdanovic commented, “The Coca-Cola System has been part of Nigerian communities for over 70 years and believes in the strength and continued potential of the market. We are excited to announce this investment, which demonstrates our dedication to fostering economic growth and creating job opportunities in the country.”
“Our investment goes beyond business growth; it’s about contributing to the well-being of the communities we call home. We foresee significant social and economic advancements, which is why we continue to invest in our business operations and community programs in Nigeria,” concluded Bogdanovic.
Ortega emphasized the importance of collaboration to create a stable operating environment. “By working in partnership with the government and other stakeholders, we can drive sustainable development and economic empowerment. Our collective efforts can create a lasting positive impact on the communities we serve.”
President Tinubu commended Coca-Cola for its long-standing partnership with Nigeria and for promoting investment opportunities that have employed over 3000 people across nine production facilities.
”We are business-friendly, and as I said at my inauguration, we must create an environment of easy-in and easy-out for businesses. We are building a financial system where you can invest, re-invest, and repatriate all your dividends. I have a firm belief in that,” he said.
Coca-Cola has a rich legacy of refreshing Africa and making a difference across the continent for over 96 years. In Nigeria, for 73 years, the Coca-Cola System has been an integral part of the local economy, employing over 2,800 people across 8 production plants.
A recent economic impact study, conducted by Steward Redqueen, found that for every job created by the Coca-Cola System, an additional 31 jobs are supported across the country.
The Coca-Cola System continues to invest in the socio-economic development of Nigeria as it scales up different sustainability interventions by investing more in empowering young people, the provision of clean potable water supply, and the support for a stronger plastics waste collection infrastructure in different parts of the country.
The Federal Government of Nigeria has announced its intention to decriminalize attempted suicide, signaling a significant shift in its approach to mental health. This decision comes amidst growing calls from stakeholders and in response to the country’s alarming suicide rates, particularly among young people.
Coordinating Minister of Health and Social Welfare, Prof. Muhammed Pate, made the announcement during a press conference marking World Suicide Prevention Day. He revealed that there has been increasing pressure from stakeholders to decriminalise such attempts during a news conference in Abuja marking the 2024 World Suicide Prevention Day, which is themed “Changing the Narrative on Suicide.”
He highlighted the need for a supportive rather than punitive approach to individuals who attempt suicide, emphasizing the importance of providing help and support instead of stigmatization and punishment.
Presently, suicide attempts are criminalised under Section 327 of the Criminal Code Act, which states that “any person who attempts to kill himself is guilty of a misdemeanour and is liable to imprisonment for one year.”
“Instead of punishment and ostracism, we must extend helping hands and support, instead of sensationalizing reportage,” Pate stated.
Nigeria’s current laws criminalize attempted suicide, with individuals facing up to one year in prison. The government plans to amend these laws to align with international best practices and remove the stigma associated with mental health struggles.
He assured that the ministry is collaborating with the Office of the Attorney-General of the Federation to amend the current law. “Nigeria will soon join the committee of nations that have de-criminalised attempted suicide,” Pate added.
The National Suicide Strategic Framework (2023-2030), launched by the Ministry of Health, outlines key strategies to address suicide prevention and mental health challenges in Nigeria. One of the core objectives of the framework is to decriminalize attempted suicide and promote a more supportive environment for individuals experiencing mental health difficulties.
The World Health Organization (WHO) has also emphasized the importance of transforming societal attitudes towards suicide. Dr. Walter Mulombo, WHO’s Country Representative, stressed that for every completed suicide, there are likely to be many more people struggling with suicidal thoughts. He encouraged everyone to start conversations about suicide prevention and mental health to break down barriers and create a more supportive environment.
“This call to action encourages everyone to start the conversation on suicide and suicide prevention,” Mulombo said. “Every conversation, no matter how small, contributes to understanding the society. By initiating vital conversations, we can break barriers, raise awareness, and create better support.”
Mulombo further emphasized the need for prioritizing suicide prevention and mental health in policy-making, calling for policies that increase access to care and provide support for those in need.
In addition to decriminalizing attempted suicide, the Nigerian government is also working to improve access to mental health services. The Lagos State Government recently launched psychiatric services at Isolo General Hospital, expanding mental health support in the region.
Meanwhile, the Federal Neuropsychiatric Hospital in Yaba has reported a significant increase in psychiatric admissions, highlighting the growing need for mental health care in the country. A 100% increase in psychiatric admissions in 2023, with new cases rising by 7% and follow-up patients increasing by 3%. This surge is primarily attributed to the growing prevalence of mental health conditions, exacerbated by economic hardships, socioeconomic factors, and inadequate resources.
The move to decriminalize attempted suicide is a significant step towards addressing the mental health crisis in Nigeria. By prioritizing mental health support and reducing stigma, the government aims to create a more compassionate and supportive society for individuals struggling with suicidal thoughts.
This article was written by Tamaraebiju Jide, a student at Elizade University
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele has stated that the federal government hopes to reduce company income tax in the coming years. He stated this during his presentation at the Access Corporate Forum 2024 organised by Access Holdings Plc in Lagos.
According to him, the federal government is looking to reduce the tax burden on businesses whilst prioritising collection efficiency to increase government revenues.
He stated, “Like the honourable Minister said, we are also reducing the corporate income tax rate from where it is now to a much lower rate in the next one to two years”
In Nigeria, companies are subject to three Corporate Income Tax (CIT) rates based on their turnover: 30% for large companies with a turnover exceeding N100 million, 20% for medium companies with a turnover between N25 million and N100 million, and 0% for small companies with a turnover below N25 million.
However, it could also attract investors into the country- a high desire for the federal government.
New VAT Regime
In addition, he outlined plans to remove taxes on essential items used daily, such as food, education, and transportation. He stated that eliminating taxes on these items would encourage production and help curb inflation.
He also mentioned that under the proposed Value Added Tax (VAT) regime, businesses would be able to reclaim input credits on their assets and services. This measure is expected to reduce inflation and eliminate the VAT costs currently shouldered by businesses.
Things you should note
According to the National Bureau of Statistics (NBS), Nigeria’s Company Income Tax (CIT) collection surged by 150.83% in the second quarter of 2024, reaching N2.47 trillion. This is a significant increase from the N984.61 billion collected in the first quarter of the year, which saw a 12% decline from Q4 2023.
The sharp rise in Q2 CIT collection was largely driven by an 87.24% increase in foreign CIT payments, totaling N1.11 trillion, more than double the amount recorded in the same period last year. This surge is attributed to the foreign exchange unification policy, which led to the Naira losing over 100% of its value since its enactment.
While foreign companies have benefited from the FX unification, local businesses have faced more challenges.
Foreign Company Income Tax (CIT) increased by 140.5%, rising from N1.42 trillion in the pre-unification year (Q3 2022 to Q2 2023) to N3.41 trillion in the post-unification year.
In contrast, local CIT experienced a more modest growth of 35.1%, increasing from N2.16 trillion to N2.92 trillion during the same period.
Canada is making substantial changes to its temporary residence programs to ensure the integrity of the system and also better manage the influx of temporary residents. The government announced a 10 percent reduction in the intake cap for international student study permits for 2025 and the introduction of stricter eligibility requirements for work permits.
According to a news release on Thursday, while maintaining a sustainable and effective system, these changes aim to align Canada’s immigration policies with evolving economic and humanitarian needs.
An X post from Immigration, Refugees and Citizenship Canada on Thursday morning, read, “Today, we announced changes to Canada’s temporary residence programs to better manage the volume of temporary residents, uphold the integrity of our immigration system and protect vulnerable people.
“We’re taking these steps to strengthen our immigration system, address the changing needs of our country and continue to grow our population responsibly.”
In January 2022, the Canadian government stated it would impose a national cap to reduce the intake of international students into the country.
Reports gathered from a news release titled “Strengthening temporary residence programs for sustainable volumes,” from Immigration, Refugees and Citizenship Canada website that the government added measures to address asylum system integrity, including partial visa requirements for Mexican nationals and enhanced fraud detection.
The Canadian government, based on the release, will reduce the intake cap for international student study permits by 10 percent for 2025, decreasing the number from 485,000 to 437,000, and will maintain this cap for 2026.
Furthermore, the Post-Graduation Work Permit Programme will be updated to better align with immigration and labour market needs.
Also, beginning sometimes this year, work permits will only be available to spouses of master’s degree students whose programs are at least 16 months long and to spouses of foreign workers in management or professional roles or sectors facing labour shortages.
It read that: “We are:
announcing a further reduction in the intake cap on international student study permits for 2025 based on a 10% reduction from the 2024 target of 485,000 new study permits issued, and then stabilizing the intake cap for 2026 such that the number of study permits issued remains the same as 2025
For 2025, this means reducing study permits issued to 437,000
updating the Post-Graduation Work Permit Program this fall to better align with immigration goals and labour market needs
limiting work permit eligibility, later this year, to spouses of master’s degree students to only those whose program is at least 16 months in duration
limiting work permit eligibility later this year to spouses of foreign workers in management or professional occupations or in sectors with labour shortages—under Canada’s work permit programs (TFWP and IMP).”
In March 2024, Canadian officials revealed, for the first time, a plan to reduce the number of temporary foreign workers after years of high immigration levels.
The latest release reveals Canada will lower the proportion of temporary residents from 6.5 percent to 5 percent of the population by 2026. This will include reforms to the International Student Programme and tighter work permit eligibility to address evolving economic pressures and strengthen system integrity.
It further read, “Canada has a long and proud history of welcoming newcomers from around the world who support our economy and enrich our country. In response to labour shortages and the aftershocks of the pandemic, the federal government took steps to meet the urgent needs of businesses and support our economic recovery. Since then, Canada’s economy has evolved, and we must continue to adapt our immigration system to respond to new pressures, including a softening labour market.
“Earlier this year, Immigration, Refugees and Citizenship Canada announced a decrease in the number of temporary residents—from 6.5% of Canada’s total population down to 5% by 2026. To achieve this goal, the federal government is taking action to manage the increase of temporary residents and hold employers misusing the system accountable. We are reforming the International Student Program, tightening eligibility requirements for temporary foreign workers, enforcing employer compliance more strictly, and making labour market impact assessments more rigorous to mitigate fraud, and more.
“To ensure the temporary residents we welcome to Canada can be supported adequately, the Honourable Marc Miller, Minister of Immigration, Refugees and Citizenship, today announced additional measures to manage the volume of temporary resident arrivals, uphold the integrity of our immigration system and protect vulnerable people.”
Minister of Immigration, Refugees and Citizenship, Marc Miller, stated: “The reality is that not everyone who wants to come to Canada will be able to—just like not everyone who wants to stay in Canada will be able to. We are taking action to strengthen our temporary residence programs and roll out a more comprehensive immigration plan to meet the demands of today’s changing landscape. Our immigration system must preserve its integrity, and be well-managed and sustainable. And as we look forward, we will do everything it takes to achieve that goal and set newcomers up for success.”
In his remarks, Minister of Employment, Workforce Development, and Official Languages, Randy Boissonnault, asserted, “The Temporary Foreign Worker Program was designed to address labour market shortages when qualified Canadians were not able to fill those roles. Right now, we know that there are more Canadians qualified to fill open positions. The changes we are making today will prioritise Canadian workers and ensure Canadians can trust the program is meeting the needs of our economy.”
“Actions we have taken, as well as the additional steps announced today, will strengthen our immigration system and help address the changing needs of our country. We have listened to Canadians, including our provincial, territorial and municipal partners, and other community leaders. We will continue to seek to protect the integrity of our system and responsibly grow our country,” the release concluded.
Here are some quick facts from the website:
– The proposed reduction of temporary residents from 6.5 percent of Canada’s total population to 5 percent will be reflected in the 2025–2027 Immigration Levels Plan, set to be released by November 1, 2024.
– Graduates from programs at public colleges will still be eligible for a Post-Graduation Work Permit (PGWP) of up to three years if they graduate from fields of study linked to occupations in long-term shortage.
– As part of the changes to the PGWP Program, all applicants must demonstrate a minimum language proficiency in French or English. This aims to enhance their ability to transition to permanent residence and adapt to changing economic conditions. A Canadian Language Benchmark (CLB) level 7 for university graduates and CLB 5 for college graduates will be required for those applying for a post-graduation work permit on or after November 1, 2024.
– The 2025–2026 study permit intake cap will include master’s and doctoral students, who will now need to submit a provincial or territorial attestation letter. Approximately 12 percent of allocation spaces will be reserved for these students in recognition of the benefits they bring to the Canadian labour market.
– On January 1, 2024, the cost-of-living requirement for study permit applicants was updated to better reflect the true cost of living in Canada and help prevent student vulnerability and exploitation.
– Budget 2024 proposes $743.5 million over five years, starting in 2024-2025, and $159.5 million ongoing to support the stability and integrity of Canada’s asylum system.
– Further information on the measures announced today will be available on our website in the near future.
– In August 2023, Canada indicated that rising housing costs might lead to placing limits on foreign student visas.
This article was written by Tamaraebiju Jide, a student at Elizade University
The Central Bank of Nigeria has disbursed a total of $2.97 billion to oil industry participants for the import of petroleum products and other associated items into the country.
The amount released between 2022 and the first quarter of 2024 comes against the backdrop of Nigeria’s considerable energy crisis, fuel shortages, and marketers’ insistence on continuing fuel imports despite the availability of petrol from Dangote Refinery.
Fuel imports, which consume a substantial amount of foreign cash, have an impact on the country’s foreign reserves and the naira-dollar exchange rate.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, announced on Thursday that the country now has a net inflow of around $2.35 billion into the Central Bank’s foreign reserves. Nigeria’s external reserves are presently at $37.24 billion as of September 17, 2024.
A breakdown utilizing the quarterly data report for the first quarter of 2024 revealed that the apex bank released $1.41 billion in 2022 for gasoline imports. In 2023, the figure fell to $1.03 billion, a 26.9 percent dip.
In the first quarter of 2024, the bank allocated a total of $522.9 million, representing 0.01 percent of the $4 billion spent on imports during the time under review, but a 12.86 percent increase over the $463.3 million recorded in the preceding period of 2023.
The CBN’s data on sectoral utilisation for transactions valid for forex revealed that $173.88m was utilised in January 2023 for fuel imports; $137.67m in February, and $151.75m in March.
Forex for fuel import transactions fell to $132.36m in April and $ 117.92m in May but rose to $89.85m in JuneThe country utilised $45.82m in July and zero dollars in August for petroleum products importation. The apex bank said $42.43m was used for fuel imports in September, $38.46m in October, $51.95m in November and $52.14m in December.
In the second quarter of 2024, the National Bureau of Statistics said the value of Nigeria’s import of PMS rose to N3.22tn – the highest on record in the nation’s history. It added that the importation of petrol in the second quarter of 2024 constituted 25 per cent of total imports in the period.
Furthermore, the N3.2tn petrol import bill in Q1 2024 marks a 100 per cent increase in the value of petrol import compared to the same period of 2023 which stood at N1.6tn. In the first quarter of 2024 so far, the value of petrol imports reached N2.6tn while cumulatively in the first six months of the year, the country’s petrol import bill stood at N5.8tn.
When compared to the same period of 2023, the country’s petrol import bill has increased from N3.1tn to N5.8tn. This denotes an increase of 87.09 per cent during the period.
Investors lost around N105 billion when the Nigerian Exchange’s (NGX) equities market sector reversed gains during four trading sessions. The market was thriving, with investors buying into banking, consumer, and oil and gas indices while spot rates in the fixed income market fell.
Key performance indicators fell by 0.19% as investors began to profit from stocks that had gained. The market index, often known as the All-Share Index, fell 181.88 basis points to settle at 98,049.04 points, according to statistics from the Nigerian Exchange.
The local market’s positive streak came to an end due to profit-taking in all main market sectors, led by the banking sector, which lost 0.62%. However, market activities increased little as the total volume and total value traded increased by 30.94% and 50.26%, respectively.
Stock analysts at Atlass Portfolios Limited said in an update that approximately 473.09 million units valued at₦11,369.76 million were transacted across 9,848 deals.
JAPAULGOLD was the most traded stock in terms of volume, accounting for 23.36% of the total volume traded in the market. Other volume drivers include UACN (12.67%), FIDELITYBK (10.67%), HONYFLOUR (5.71%), and GTCO (3.23%).
UACN emerged as the most traded stock in value terms, accounting for 18.20% of the total value traded on the exchange. ABCTRANS and McDonald’s topped the advancers’ chart for today with a price appreciation of 10.00 percent each.
Other gainers include UPL with (+9.95%) growth, FIDSON (+9.85%), CAVERTON (+9.80%), FIDELITYBK (+9.73%), DEAPCAP (+9.52%), and eighteen others.
Twenty-six stocks depreciated due to selloffs. HONYFLOUR was the top loser, with a price depreciation of -9.98%. Other decliners include FBNH (-9.88%), TANTALIZER (-8.82%), FTNCOCOA (-5.78%), NEIMETH (-4.76%), and FLOURMILL (-1.75%).
Stock data showed that the market breadth closed slightly negative, recording 25 gainers and 26 losers. In addition, the market sector performance was negative, as all five major market sectors were down. The banking sector declined by -0.62%, followed by the insurance sector, which lost -0.57%, while the consumer goods sector dipped by -0.26%.
Also, the Oil & Gas sector fell by -0.13% and the Oil & Gas sector went down by -0.06%. Overall, the equities market capitalisation of the Nigerian Exchange declined by₦104.51 billion to₦56.34 trillion.
On Thursday, the Nigerian naira slid 28 basis points versus the US dollar in the foreign currency (FX) market as demand pressured it. Analysts predicted that exchange rate problems would endure until there was a clear policy direction to defend the local currency against the major foreign currencies.
Nigeria’s FX liquidity crisis has kept the exchange rate on edge, while the strengthening of the naira’s purchasing power is dependent on the CBN auction. The exchange rate rose by more than 7% after the Central Bank of Nigeria (CBN) paid almost $20 million to purchase local currency midweek.
According to FX spot data from the FMDQ platform, the naira depreciated by 0.28%, closing at ₦1,544.02 per dollar at the official market. “CBN should have a calendar for US dollar sales to authorised dealer banks and perhaps, by extension, Bureau de Change (BDC) operators,” an investment expert who preferred not to be mentioned told MarketForces Africa.
Critics affirmed that it was a grave policy miscalculation to assume that the naira will survive onslaught attack in FX market with the willing buyer, willing seller model. “The country has no comparative advantage in production of anything.. Nigeria has no strategic country’s advantage with weak export flows…
“How does a nation that basically surviving on hydrocarbon sales with near equivalent imports bills survive currency floatation in the first place”?
Today, the naira was relatively steadied at ₦1,645 per US dollar in the parallel market. The level of demand made for invisible FX payment normalised after previous $20,000 subsidized FX sales to BDCs. Now, the activities of currency speculators would gather momentum as gap between official and parallel market exchange rates hit N100.
In the global commodities market, oil prices increased following a larger-than-expected interest rate cut by the Federal Reserve. Thus, as of the latest report, the Brent price is up by 1.72% to $74.92, and the WTI price increased by 1.16% to $72.09.
Additionally, gold prices surged over 1%, as the U.S. Federal Reserve initiated its rate easing cycle. Currently, the price of gold is approximately $2,608.90 per ounce.
The Securities and Exchange Commission (SEC) announced that it will encourage government agencies and state-owned firms to list on the Nigerian Exchange Ltd.
Dr Emomotimi Agama, the SEC’s Director-General (D-G), said in an interview with journalists in Abuja on Thursday that listing the companies on the NGX will ensure the democratization of their operations.
Agama stated that the listing will help ensure inclusiveness and economic creation for citizens. He stated that the Commission would provide incentives to encourage the listing of as many state-owned firms as possible.
According to him, inclusion is crucial because it allows you to own your industry and country, and we all work together to create them. The D-G stated that the SEC was also working towards inclusivity through technology, adding that the use of technology would make the capital market more attractive, especially to the younger generation.
“That is why we encourage apps, we encourage fintech tools, and that is why we supported the inauguration of the electronic offering platform at the Nigerian exchange.
”We encourage everyone who wants to participate and is qualified to participate in this process, to turn around the way people see investing.
“We want investors to have a beautiful experience, to make it so easy for them that each time they feel like investing, it brings happiness to them.
”We will continue to do that through encouragement of technology, through education,” Agama said.
He said the Commission would ensure that bottlenecks usually experienced in process of investing in the market were removed to rejuvenate the country’s capital market.
Nigeria’s foreign reserves have received a net inflow of $2.35 billion into the Central Bank’s coffers. This was revealed by Wale Edun, Minister of Finance and Coordinating Minister of the Economy, at the Corporate Customers Forum in Lagos on Thursday.
“There has been a net inflow in the first seven months of this year of about $2.35bn every month,” Edun stated, adding that this increase has played a key role in stabilizing the naira in the foreign exchange market.
He also said, “We also have foreign exchange liquidity. The gross reserves are up,” the minister continued. He attributed this growth to the government’s efforts and remarked, “On the fiscal side as well, government revenues are growing.”
Edun highlighted that the country’s tax-to-GDP ratio stands at 10 per cent, with the revenue to GDP at 15 per cent, calling for more infrastructure and social safety net spending to address these low figures.
“We have relative currency stability. And of course, the all-important margin of the rates. We’ve seen a gradual elimination of multiple exchange rates,” Edun concluded.
Bizwatch reported in July that Nigeria’s foreign reserves increased to $35.05 billion, according to Central Bank of Nigeria data. The current amount of reserves is a return to the early days of President Bola Tinubu’s presidency, when the reserves were above $35 billion.
On Wednesday, the National Pension Commission (PenCom) revealed that some states had remitted N236.7 billion in pension contributions to the Pension Fund Custodians (PFCs) from January 2020 through the second quarter of 2024.
This update was shared by Ms. Omolola Oloworaran, Acting Director-General of PenCom, at the Third Quarter 2024 Consultative Forum for States and the FCT, hosted by the Commission in Lagos.
The forum, as reported by the News Agency, assembled heads of Pension Bureaux, Boards, and Commissions overseeing the implementation of the Contributory Pension Scheme (CPS).
Also at the forum were heads of service and senior government officials of some states that had commenced implementation of the scheme.
Oloworaran said that, based on its records, 25 states including the FCT had enacted pension laws on the CPS, while six are preparing to pass the law.
She explained that six states had already adopted the Contributory Defined Benefits Scheme (CDBS).
According to her, only eight of the 25 states are fully implementing the Contributory Pension Scheme (CPS) and enacted laws.
The acting director-general said further that the pension fund assets under the scheme had risen, with total Assets under Management soaring to N20.79 trillion as at July 2024.
“It will interest state governments to note that one of the significant benefits of adopting the CPS is access to accumulated pension funds for infrastructural development through issuance of state bonds.
“Indeed, five states, including Lagos, Niger, Osun, Ekiti and Delta, have successfully issued state bonds that were subscribed by pension funds, example Lekki-Ikoyi Bridge in Lagos,’’ she said.
She said the commission was committed to ensuring that all retirees from public and private sectors received their retirement benefits without delay.
Oloworaran, however, said the Commission would engage the states in a sustained manner and work towards expanding the coverage of the CPS at the subnational level.
“We will also intensify efforts with relevant state government agencies to resolve the backlog in accrued rights payments to CPS retirees.
“In addition, we will ensure that pensioners under the CPS and other pension arrangements benefit from pension increments as provided for in the Nigeria constitution,” she said.
The commission, starting from December 2025, will introduce a Recognition and Award System to incentivize and reward states for their pension reforms, the PenCom boss said.
She encouraged participants to contribute constructively to the forum’s discussions to support state governments in their roles in pension reform and implementation.
This article was written by Tamaraebiju Jide, a student at Elizade University
Nigerian Breweries Plc has revealed plans to reduce its foreign exchange losses through a N599.1 billion rights issue. The company’s Secretary, Uaboi Agbebaku, announced this during the ‘Facts Behind the Rights Issue’ presentation at the Nigerian Exchange Limited on Tuesday.
Agbebaku stated that the rights issue is intended to eliminate forex losses from the company’s balance sheet and reduce its interest burden on local debts in light of Nigeria’s 26 percent monetary policy rate.
The company is offering 22.6bn ordinary shares at 50 kobo each, at N26.50 per share, allowing shareholders to purchase 11 new shares for every five they currently hold.
He explained that the proceeds would be used to settle the company’s payables, including N328bn in forex debts and N263bn in local debt repayments.
“Our FX losses are substantial, and clearing these obligations will stabilise our profit and loss accounts. We are also working to reduce local bank debts. The impact of that is that it will eventually reduce the interest burden that we are carrying, which has been a significant financial strain,” he said.
Reports revealed that Nigerian Breweries suffered a N153bn forex loss in 2023 due to the devaluation of the naira.
At the presentation, shareholders voiced concerns about the company’s financial health and urged management to adopt forward-looking strategies to mitigate future foreign exchange risks.
They recommended increased investments in research and development, as well as backward integration, to reduce reliance on imported raw materials.
Hans Essaadi, the Managing Director of Nigerian Breweries, acknowledged the challenging environment but expressed optimism about the company’s future.
“We have completely future-proofed our business. Some measures taken by the new administration are painful, but we believe that in the mid-to-long term, we will start to see positive outcomes. As inflation, interest rates, and other economic indicators improve, our results will follow suit,” he enthused.
Essaadi also revealed that Heineken, the brewer’s parent company, which holds over 67 per cent of Nigerian Breweries’ equity, had suspended interest on its foreign loans to enable the company to meet its financial obligations.
Despite the economic pressures, Essaadi reiterated the company’s long-term commitment to the Nigerian market.
“We have been in this market for nearly 80 years and have weathered many storms. This rights issue is essential for stabilising our balance sheet and ensuring long-term growth,” he added.
He also highlighted the company’s recent acquisition of Distell Nigeria, marking its entry into the wine, spirits, and ready-to-drink segments, which was expected to boost profitability and strengthen Nigerian Breweries’ presence in the Nigerian market.
Jude Chiemeka, the Chief Executive Officer of the Nigerian Exchange Limited, in his remarks, praised Nigerian Breweries for using the platform to showcase its financial performance and strategic plans.
He commended the company’s board and management for their efforts to improve operations and restore investor confidence during challenging times.
Chiemeka urged the company to continue taking advantage of the benefits of being listed on the exchange, such as better access to capital, a higher global profile, and increased liquidity.
This article was written by Tamaraebiju Jide, a student at Elizade University
Zoho, a global technology company, today said that it grew by 31% in 2023 in Nigeria, one of its key markets in the Africa region. The company has been providing its 55+ apps in Naira to help local businesses avoid fluctuating dollar rates.
Zoho also announced its collaboration with Bridge International Academies in order to support the education of underprivileged children. The announcements were made on the sidelines of Zoholics Nigeria, the company’s annual user conference.
“As we continue to grow our presence in Africa, our focus is on ensuring that our expansion positively impacts the local economy, communities, and the broader business ecosystem,” said Kehinde Ogundare, Country Head, Zoho Nigeria. “This approach aligns with our transnational localism strategy, which emphasises being rooted in local markets while staying globally connected. To support this, we are committed to hiring local talent, strengthening our partner network, and creating products tailored to the local market. Additionally, to serve the community, we are supporting the education of children and also undertaking sustainability initiatives.”
Community and Environment Initiatives
Zoho is partnering with Bridge International Academies to establish a meaningful Corporate Social Responsibility (CSR) initiative in Nigeria, Kenya, and Uganda. The primary objective of this partnership is to support the education of 200 children from underserved communities by sponsoring school uniforms, fees for four terms, and other essential items for students attending Bridge International Academies.
This initiative aims to address the issue of financial constraints that hinder many pupils’ access to essential school supplies. Zoho recognises the crucial role of education in societal development and is committed to breaking down these barriers by supporting Bridge international Academies pupils with necessary supplies.
In addition to this, Zoho aims to assist Bridge international Academies in its digitalisation efforts, offering Zoho Wallet Credits to help them utilise the company’s technology.
“Every child has the right to education, yet many children from underprivileged backgrounds face significant barriers to accessing quality learning opportunities. That’s why we are committed to transforming the lives of millions of children in underserved communities by delivering life-changing education. Through strategic partnerships, we aim to bridge this gap by providing vital resources and high-quality education to the students we serve. We are thrilled and deeply grateful for our partnership with Zoho, as our shared commitment to delivering meaningful value is at the heart of what unites us,” said Foyinsola Akinjayeju, Managing Director, Bridge International Academies, Nigeria.
Zoho is also recycling the billboards of its out-of-home ads and turning them into bags. Over 500 flexes from Nigeria and 1300+ in Kenya have been recycled so far.
“At Zoho, we believe that our growth should go hand in hand with the success of our customers, partners, employees, and the communities we are part of. In Nigeria, we embrace this same philosophy by hiring locally, expanding our partner network, and offering affordable technology tailored to meet local needs. For the community, we have been investing in youth upskilling initiatives and are now extending support to children’s education. We are also committed to strengthening our sustainability efforts, including expanding our recycling programmes, such as flex recycling,” said Ogundare.
Zoho’s Growth in Nigeria
Zoho has experienced impressive growth in the Nigerian market since commencing operations in 2020. Over the past three years, Zoho has achieved a 43% compound annual growth rate (CAGR) in Nigeria. In 2023 alone, Zoho saw a 21% increase in its partner network. Additionally, the company expanded its local workforce in Nigeria by 40% in the previous year.
Zoho’s success in Nigeria stems from the widespread adaptation of its flagship products, including Zoho Workplace, Zoho Books, Zoho Desk, Zoho CRM, and Zoho One. These products have played a crucial role in optimising business operations, improving customer experience, and enhancing efficiency. Zoho’s success in the Nigerian region is driven by key sectors such as financial services, energy, real estate and construction, IT hardware & IT-related services, professional services (non-IT), utilities and resources, and retail.
Other upskilling initiatives in Africa
Earlier this year, Zoho revealed several upskilling partnerships across Africa. As part of the Young Creators Program, Zoho partnered with She Code Africa, a non-profit organisation dedicated to empowering and upskilling African women in tech. Zoho conducted “train the trainer” sessions for SCA Academy trainers, equipping them with skills to use Zoho Creator, Zoho’s low-code app development platform. The SCA Academy trainers will then train more students associated with SCA to develop impactful applications using low-code technology, addressing real-world business challenges.
In Kenya, the company joined forces with MOMO Pencils, a leading manufacturer of eco-friendly stationery in Nairobi, for the “Hope for Literacy” program. The program seeks to combat intergenerational poverty by improving access to quality education for children in underserved communities while promoting environmental sustainability and eco-friendly practices in schools.
Zoho also partnered with J-Hub Africa, the digital innovation hub at Jomo Kenyatta University of Agriculture and Technology, to provide training for JKUAT technology students. This partnership will focus on teaching students how to leverage Zoho’s cloud-based business applications, enhancing their technology skills, and preparing them for diverse career opportunities in various industries.
Recently, in South Africa, Zoho collaborated with BabesGotBytes to empower over 40 girls and women with digital skills through a comprehensive one-year boot camp, aimed at bridging the skills gap and increasing female representation in tech. Additionally, Zoho partnered with CodeTelligence to support a 6-month boot camp for 36 economically disadvantaged youth, providing IT training and mentorship to enhance their employability and readiness for the workforce.
Nigeria’s government Eurobond yield rose in the international market as foreign investors assessed the impact of the US Fed rate drop on their portfolio returns.
Foreign investors may begin to increase their bets on African Eurobond assets and local bonds with competitive returns in the coming months, owing to the Fed’s dovish stance on interest rates later this year.
The US Federal Reserve cut rates by 50 basis points for the first time since 2020, signifying a shift away from its aggressive monetary policy approach and bringing fed fund rates down to the 4.75 – 5% range.
Analysts predicted that the time for rate market competition would come with the US’s dovish monetary policy stance, which began on Wednesday.
US Treasury yield increase as market digested rate hike. Volatility in the bond market has been running high since the Fed started hiking rates in 2022, causing historical losses in bonds and whiplash across financial markets.
The 2-year US Treasury yield rose 0.011 percentage points to 3.602%. The 30-year US Treasury yield rose 0.054 percentage points to 4.007%. Some analysts told MarketForces Africa that African sovereign US dollar bonds would rally as foreign investors would begin to move funds around.
Analysts identify Nigeria, Egypt, and South Africa among other countries that will see inflows of hot monies from offshore investors seeking alpha on funds.
In Nigeria’s sovereign Eurobonds market, sell pressure at the short, mid, and long ends of the yield curve led to a 0.07% increase in the average yield to 9.70%, according to analysts at Cowry Asset Limited.
The SSA Eurobonds closed bearish today. Most investors remained skeptical about the magnitude of the rate cut at today’s FOMC meeting. However, a few buyers were interested in some Nigerian and Angola papers, picking up some of the attractive prices.
On average, the mid-yield across the Nigerian curve increased by 8 bps to 9.66%, according to analysts at AIICO Capital Limited. Due to selloffs witnessed in the international capital market, the average yield increased by +4 bps to close at 10% last week.
The trading activities in the market toughened after the European Central Bank (ECB) voted unanimously to cut its key policy rates. The main refinancing operations rate was lowered down to 3.65% from 4.25%, the deposit facility rate to 3.50% vs 3.75%, and the marginal lending rate to 3.90% vs 4.50%.
The ECB reaffirmed its dedication to achieving its 2% inflation target as risks to the inflation outlook ease. U.S. Treasury yields rose in choppy trading. The benchmark 10-year yield rose 7.1 bps to 3.713% after earlier hitting its highest in more than a week.
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 1665.50 per $1 on Thursday, September 19, 2024. Naira traded as high as 1652.00 to the dollar at the investors and exporters (I&E) window on Tuesday.
How much is a dollar to naira today in the black market?
Dollar to naira exchange rate today black market (Aboki dollar rate):
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N1655 and sell at N1660 on Wednesday, 18th September 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
N1655
Selling Rate
N1660
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.
Fuel Subsidy Removal Could Slow External Reserve Growth – CBN
The Central Bank of Nigeria (CBN) has warned that the removal of fuel subsidies, rising import costs, and increased external debt servicing could negatively impact the growth of the nation’s external reserves in 2024/2025.
This was outlined in the CBN’s Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the fiscal years 2024/2025.
Despite these concerns, the CBN’s outlook projects economic growth for Nigeria during this period, driven by continued policy support in agriculture and oil sectors, reforms in the foreign exchange market, and the implementation of the Finance Act 2023 and the 2022-2025 Medium-Term National Development Plan (MTNDP).
“The outlook for Nigeria’s external sector in 2024/2025 is optimistic,” the CBN stated, citing expectations of favorable trade terms due to higher crude oil prices and improved domestic oil production. The bank also expects gains from capital inflows and remittances.
However, challenges remain. “Lower crude oil earnings, the removal of fuel subsidies, increasing import bills, and growing external debt servicing obligations pose downside risks to external reserves,” the CBN added.
With approval anticipated for a total of $1.7 billion in loans, the Federal Government is about to obtain a new loan from the World Bank. According to official documents that was obtained, the loan is expected to be approved on September 26, 2024.
The funds will be allocated through three major development projects designed to bolster Nigeria’s economic stability and enhance its resource mobilization capabilities.
The first project is the Nigeria: Primary Healthcare Provision Strengthening Programme, which is set to receive $500m.
The second project, Nigeria Human Capital Opportunities for Prosperity and Equity Governance, has proposed funding of $500m.
While the Sustainable Power and Irrigation for Nigeria Project will receive the highest funding of $700m.
The document stated that these projects have reached the negotiation stage and are expected to be approved on September 26, 2024. (As of board presentation).
The negotiation stage, the final phase of the loan process, indicates that the request has successfully cleared the appraisal stage between Nigeria, represented by the Minister of Finance, and the World Bank.
If approved, Nigeria will have secured a total of $3.95bn in loans from the bank this year alone and a cumulative $6.65bn under the administration of President Bola Tinubu.
The proposed loan projects, targeting crucial sectors such as healthcare, agriculture, and infrastructure, are pivotal for the country’s sustainable development and economic stability.
The Nigeria Human Capital Opportunities for Prosperity and Equity, which will receive $500m, focuses on enhancing human capital by improving education, health, and social protection services.
According to the draft copy of the Environment and Social Systems Assessment prepared by the bank, the project is to improve quality and utilisation of essential health care services and health system resilience in Nigeria.
The document read, “The proposed HOPE-Health provides a Sector-Wide Approach platform, leveraging significant additional resources to support a critical agenda.
“By aligning donor financing with the government’s resources, the proposed operation will foster convergence around a common set of results that are reflective of Nigeria’s disease burden.
Continuing, it said, “The Programme Development Objective is to improve quality and utilisation of essential healthcare services and health system resilience in Nigeria. Four PDO-level indicators align with the PDO emphasis on utilization, and quality of essential health care services.
“Number of women and children who receive tracer essential health services by community health workers. The number of PHC facilities achieving service readiness assessment criteria. The proportion of deliveries with skilled birth attendants present and the number of empaneled EDGE level 1 CEmONC facilities certified.”
The project involves several implementing agencies, including the Federal Ministry of Budget and Economic Planning, the Federal Ministry of Health and Social Welfare, and the Federal Ministry of Education.
Additionally, the international lender has highlighted that the loan for the “Nigeria: Primary Healthcare Provision Strengthening Program” aims to strengthen Nigeria’s primary healthcare system by improving infrastructure, training healthcare professionals, and enhancing service delivery. This initiative will be managed by the Ministry of Health.
The third project, the “Sustainable Power and Irrigation for Nigeria Project,” will focus on sustainable power generation and irrigation, which are critical for agricultural and industrial development. It will be overseen and implemented by the Federal Ministry of Water Resources and Sanitation.
Two loan requests including the Rural Access and Agricultural Marketing Project – Scale Up project will receive $500m by December 16, 2024, and the Solutions for the Internally Displaced and Host Communities Project has been slated for an approval date of April 8, 2025.
Recall that on June 13, the World Bank announced the approval of two loan projects aimed at bolstering Nigeria’s economic stability and supporting its vulnerable populations.
According to a statement from the bank, the combined package, totaling $2.25bn, comprises the $1.5bn Nigeria Reforms for Economic Stabilization to Enable Transformation Development Policy Financing Program and the $750m Nigeria Accelerating Resource Mobilization Reforms Program-for-Results.
Already, the international lender has received $751.88m of the $1.5bn under the Nigeria Reforms for Economic Stabilisation to Enable Transformation.
Under President Bola Tinubu’s administration, Nigeria has secured a total of $4.95 billion in loans from the World Bank, amid concerns over rising external debt servicing costs.
The approved loan projects, not less than six, includes funding for power ($750 million), women empowerment ($500 million), girls’ education ($700 million), renewable energy ($750 million), economic stabilization reforms ($1.5 billion), and resource mobilization reforms ($750 million).
According to the Debt Management Office’s external debt stock report, as at March 31, 2024, Nigeria owed the World Bank $15.59 billion.
On Tuesday,reports revealed that in six months, 20 state governors have borrowed N446.29bn. This showcases the evident financial burden the sub-nationals face presently.
This article was written by Tamaraebiju Jide, a student at Elizade University
The Joint Action Committee of the Senior Staff Association of Nigerian Universities and the Non-Academic Staff Union of Educational and Associated Institutions has revealed intentions of beginning an indefinite strike if they are not paid within three weeks, their outstanding salaries.
The unions are seeking the payment of four months’ withheld salaries, improved remuneration, earned allowances, and the implementation of the 2009 agreements with the government, among other demands.
In response to the prolonged strike by the four university-based unions in 2022, the Federal Government, through the Ministry of Labour and Employment, invoked the “No Work, No Pay” policy.
In a statement jointly signed by the President of SSANU, Mr. Mohammed Ibrahim, and the General Secretary of NASU, Prince Peters Adeyemi, the unions said the Federal Government was given a 10-day grace period, which expired on July 26, 2024, to pay the four months of outstanding salaries to university staff, with the threat of shutting down universities and inter-university centres if the payment was not made.
However, six weeks after the grace period elapsed, the government has still not fulfilled this obligation.
“It is in respect of the above that we write to inform the government of the decision of the National JAC of NASU and SSANU at the meeting held on 12th September 2024, that the government be given another three weeks’ final ultimatum from Tuesday, 17th September 2024, to pay the four months’ withheld salaries and also implement the agreement reached with it on 20th August 2022, failing which our members may be forced to embark on indefinite strike action at the expiration of the ultimatum.”
The unions also pointed out that although President Bola Tinubu had approved the payment of the four months’ withheld salaries, relevant government officials had not yet carried out this directive.
“We have it on good authority that Mr. President has given approval for the payment of the four months’ withheld salaries as far back as 18th July 2024 at the national minimum wage meeting with the leadership of NLC and TUC.
“Of recent, we also heard that Mr. President has given approval for the actual release of the payment. Regrettably, nothing has been forthcoming despite all the approvals.”
This article was written by Tamaraebiju Jide, a student at Elizade University
The Federal Government has urged private sector recruitment agencies to comply with the N70,000 minimum wage, warning that any deviation will not be tolerated.The FG emphasized that no Nigerian worker, whether in government or private employment, should be paid less than this minimum wage, as the new minimum wage is essential to address the current economic realities.
Kachollom Daju, the Permanent Secretary of the Ministry of Labour and Employment, made this statement on Wednesday during the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria, at Ikeja, Lagos.
Daju, who was represented by the Director of Employment and Wages of the ministry, John Nyamali, said, “The minimum wage is now a law, and as a result, it is a punishable crime for any employer to pay less than N70,000 to any of its workers.
“The private employment agencies should make it compulsory in any contract they take from their principal that their workers should not earn less than the minimum wage. The least paid worker in Nigeria should earn N70,000, and I think that should be after all deductions.
“The minimum wage is a law, and you can be jailed if you fail to implement it. The Federal Government is committed to ensuring that the least paid worker goes home with N70,000.”
In his remarks, the President of the Employers Association for Private Employment Agencies of Nigeria, Dr. Olufemi Ogunlowo, asked the government and Nigeria Labour Congress to clarify whether the N70,000 minimum wage is net or gross, stating that all ambiguities in the Act should be highlighted and explained.
According to Okoye, the EAPEAN is already committed to the minimum wage, as well as providing decent jobs for Nigerians and guarding against the exploitation of human resources.
“As a labour union in the private sector, we are committed to the implementation of the minimum wage. We are a law-abiding and guided association. Our principals and clients have also keyed into the minimum wage.
“However, the government must clarify whether the N70,000 minimum wage is net or gross. The government and NLC should address all ambiguities in the minimum wage,” he stated.
The Chairperson of the NLC, Lagos State chapter, Funmilayo Sessi, while speaking at the programme, said the siginificant hardship has greatly eroded the value of workers’ earnings in Nigeria, prompting a call for private employers to ensure the payment of the N70,000 minimum wage.
She stated: “The N70,000 isn’t enough in the current economic realities. By the time the consequential adjustment is concluded, all private employment agencies should immediately start paying their workers the N70,000 minimum wage.
“The NLC in Lagos State will see to the strict enforcement of the minimum wage. EAPEAN should avoid confrontation with the NLC on the minimum wage.”
This article was written by Tamaraebiju Jide, a student at Elizade University
Investors and bondholders refused to abandon Federal Government of Nigeria (FGN) bond purchases in the secondary market after disinflation increased the real return on naira assets.
The market closed on a mixed note, albeit with bullish mood, as investors refilled their portfolios ahead of the next auction slated for September 23. The buying momentum in the over-the-counter market was fueled by investors’ hopes that the Debt Management Office (DMO) would limit bond issuance during the primary market auction.
From the beginning of the year till now, the debt office has raised approximately N5 trillion from the debt capital market, with pension fund administrators and local banks placing the majority of the wagers.
On Wednesday, traders said in their separate updates that it was a quiet day in the bond market, with some buying interest observed at the mid-segment (-3 bps) and long end (-2 bps) of the curve.
Buying interest in the MAY 33 FGN bond caused its yield to decline by -24 bps, while demand for JUN 53 FGN paper dragged its yield lower by -20 bps. As a result, average yields on FGN bond instruments contracted by a basis point to close at 18.83% in the secondary market.
Today, the local FGN bond market had two distinct periods, AIICO Capital Limited said. Analysts explained that earlier in the day, there was selling interest in specific bonds (2031s and May 2033 papers).
However, towards the end of the market session, there was a resurgence of market bids, especially for the May 2033 paper, as investors looked to take advantage of the high yields. “We expect the buying interest to persist tomorrow,” the investment firm said.
Analysts at Cordros Capital Limited stated that across the benchmark curve, the average yield closed flat at the short and mid segments, but declined at the long (-2 bps) end due to demand for the JUN-2053 (-20 bps) bond.
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