Thursday, November 28, 2024
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University Unions Threaten Strike, Give FG 3-Week Ultimatum

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

Interbank Rates Drop as ‘Bullet Payments’ Enhance Liquidity

FG Warns Employers: Pay N70,000 Or Face Imprisonment.

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

 Dam Release Triggers Flood Alert In 11 Nigerian States

Investors Raise Stake On FGN Bond As Yield Stay Elevated

FGN Bond For Jan. 2021 Oversubscribed

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.

Rep Calls For Multinationals To Pay Climate Tax

Money Market Rates Rises As Banks Blow Up CBN Facility

How Much Money Is Spent On Groceries In Nigeria, Other Countries?

Interbank rates have risen above the 31% mark, as the financial system’s liquidity remains negative. Because of the banking system’s inadequate funding profile, money market rates have remained high.

According to data from the FMDQ website, the open repo rate increased by 82 basis points to 31.28% in the market on Wednesday. Similarly, the overnight lending rate rose 56 basis points to 31.56%, with banks queuing at the Central Bank of Nigeria’s borrowing shop for financing.

Analysts observed that despite coupon inflows from FGN bonds, money market pressure remained significant. The market saw an influx of N57.73 billion from FGN bond coupon payments.

After the inflows, the liquidity balance in the financial system closed at N542 billion negative ahead of FAAC credit disbursements. But this was insufficient to upturn the money market rates direction, while analysts noted that fewer deposit money banks were exposed to the Standing Lending Facility window.

Banks with excess cash were also requesting a higher rate to part with their funds. Tier-2 banks were noted to form the majority of the borrowers at the CBN window. “We expect the interbank rates to remain elevated tomorrow, pending FAAC inflows,” AIICO Capital Limited said in its market update.

Nigerian interbank offered rates increased across all tenors, reflecting system illiquidity. Nigerian Interbank Treasury Bills True Yield witnessed mixed movement across all maturities. The average secondary market yield on T-bills moderated by 0.01% to 18.18%.

Rep Calls For Multinationals To Pay Climate Tax

Nigerian Treasury Bill Selloffs Provoke 10bps Yield Spike

LBS Discloses FG's Targets With Naira Redesigning

During the middle of the week, the secondary market was dominated by sellers as investors unbundled their naira asset portfolio. The average yield on Nigerian Treasury bonds increased by 10 basis points to 20.52% as a result of a naira asset selling binge.

The bearish pattern has persisted, beginning with dropping spot rates at central bank primary market auctions. As inflation fell, spot rates on Treasury bills of various maturities were gradually reduced.

Nigeria saw its second disinflation of the year, following 30 months of consecutive uptrends that left financial market participants on edge. However, the fixed income market is straining to balance disinflation and the upcoming high interest rate environment ahead of the monetary policy committee meeting next week.

While the market begins to set expectations, trading activities in the Treasury bills market have continued to experience a bearish session. On Wednesday, yield dragged as few sellers in the secondary market offered selected mid- and long-dated papers.

As a result, the average mid-rate across the benchmark Nigerian Treasury bill papers jumped. Fixed interest securities analysts at AIICO Capital Limited expect mixed sentiments tomorrow.

Across the curve, the average yield pared at the short (-1bp) end due to demand for the 85-day to maturity bills (-1bp), but increased at the mid (+25bps) and long (+5bps) segments due to selloffs.

Investors offloaded 127-day to maturity bills in the market and this caused 134bps in its yield. At the belly of the curve, investors also sell down 190-day to maturity bills, which resulted in +74bps yield surge.

Analysts at Cordros Capital Limited said the average yield expanded by 7 basis points to 23.7% in the OMO bills segment in the secondary market.

Obasanjo Reveals How FG Generated $1.2 Billion From Telecom Licenses

VerveLife 7.0: Africa’s Biggest Fitness Party Returns with Unmatched Energy and Excitement

Get ready to turn up the energy because VerveLife, Africa’s biggest fitness party, is back with a bang for its seventh edition, VerveLife 7.0. Powered by Africa’s leading domestic payments card and token brand, Verve, this year’s VerveLife edition promises to be the most electrifying and unforgettable fitness celebration yet!

For years, the VerveLife platform has focused on encouraging the fit and healthy lifestyle among fitness enthusiasts and everyday people, through exciting and invigorating workouts led by renowned fitness experts. This year, brace yourself for an epic fitness experience that will leave you energized and inspired!

Satellite Events Across Major Cities

Ahead of the grand finale on Saturday, November 2, 2024, at Landmark Event Centre, Victoria Island, Lagos, VerveLife has scheduled a series of satellite events across major cities in the country, from Asaba to Uyo (September 7th); Enugu (September 14); Ibadan (September 21); UNILAG (October 1), and Abuja (October 12).

In addition to the thrilling fitness experiences across Nigeria, the VerveLife train will also make stops in Kampala, Uganda and Nairobi, Kenya before culminating in the spectacular grand finale back in Lagos, Nigeria.

Grand Finale and After-Party

The grand finale and after-party themed ‘Fit n’Lit’ will be held on November 2, 2024, at the Landmark Event Center in Victoria Island, Lagos with rousing musical performances and trainers spurring the audience on through synced workout routines in the perfect blend of music and fitness.

But that’s not all! Lucky attendees will enjoy enticing offers and gifts from global sports apparel brand and co-headline sponsor, adidas. Later that night, attendees at the after party will be enthralled by exciting performances by the renowned band, Alternate Sound, alongside celebrity DJs and other top acts, adding an extra layer of excitement to the grand finale celebrations. Mark your calendars!

Why You Can’t Miss VerveLife 7.0!

Those who know, know—VerveLife is famous for throwing Africa’s biggest fitness party, and guess what? This year is no exception. The lineup of fitness experts expected to attend the satellite events and grand finale is invigorating on it own!

Along with an impressive line of top fitness experts, trainers and dancers from across Nigeria including Kaffy Kemen, Trebla and Mayorfit and from around Africa, including South African fitness royalty, Queenfitnass, Kenyan fitness expert, Alvin Lee among others, VerveLife has turned up the heat. In this edition, the line up has extended further to feature the renowned international trainer and personal trainer, Ulisses alongside Nkululeko Dlamini, the South African squats maestro popularly known as the King of Squats.

Attendees can also look forward to energetic fitness activities such as aerobics, dance sessions, breakout sessions and fun challenges. Other attractions include free consultations and wholesome networking opportunities too!

VerveLife underscores Verve’s commitment to supporting the lifestyle needs of its cardholders while also providing them with seamless payment solutions. So, what are you waiting for? Grab your workout gear and get ready to hop on the VerveLife 7.0 train for an unforgettable fitness adventure!

Register now and be part of Africa’s biggest fitness celebration. Let’s get fit and lit together and celebrate the good life with Verve!

For registration and more information, visit www.myverveworld.com/life or Verve Card on social media.

Obasanjo Reveals How FG Generated $1.2 Billion From Telecom Licenses

NGX Makes N316bnIn Profit As Investors Renew Interest In GEREGU, FBNH

FIC

Equities investors trading highs and lows on the Nigerian Exchange (NGX) platform won more than N316 billion on Wednesday as a result of favorable price appreciation, according to certain bellwethers.

Trading operations concluded in positive territory, with key performance indicators rising by 0.56% following disinflation. The market index, or All-Share Index, rose 545.28 basis points today, or 0.56%, to settle at 98,230.92 points.

Investor confidence remained high, buoyed by improved purchasing interest in some mid and large-cap equities. The market’s top gainers are FBNH, ETERNA, GEREGU, and others.

Due to the sustained rally, investors on the Nigerian Exchange has seen a surge of ₦871 billion in investors’ wealth in the last four successive trading sessions. Stockbrokers reported that market activities inched lower, as the total volume and total value traded for the day decreased by 23.34% and 19.49%, respectively.

In a note to investors, Atlass Portfolios Limited said approximately 361.30 million units valued at ₦7,566.54 million were transacted across 9,627 deals. JAPAULGOLD was the most traded stock in terms of volume, accounting for 17.78% of the total volume of trades on NGX.

Other volume drivers include FBNH (7.41%), UBA (7.14%), UPDC (5.06%), and TRANSCORP (4.95%). GEREGU emerged as the most traded stock in value terms, accounting for 17.82 of the total value of trades on the exchange.

HONYFLOUR topped the advancers’ chart with a price appreciation of 9.96 percent. Other gainers include MEYER (+9.95%), ACADEMY (+9.89%), CAVERTON (+9.68%), GEREGU (+9.52%), DAARCOMM (+9.23%) and twenty others.

Twenty-six stocks depreciated, stockbrokers said. NNFM was the top loser, with a price depreciation of -10.00%. Other decliners include BERGER (-9.81%), LIVESTOCK (-9.09%), INTBREW (-5.58%), FLOURMILL (-4.92%), and TRANSCORP (-2.73%) also dipped in price.

Given the trading direction, equities market breadth closed par, recording 26 gainers and 26 losers. However, the market sector performance was positive, as three of the five major market sectors ended in green.

The banking sector grew by +1.06%, followed by the Insurance sector which gained +0.59%, and the Oil & Gas sector popped higher by +0.35%. The Consumer goods and Industrial sectors dropped by 1.06% and 0.07% respectively.

Overall, the equities market capitalisation of the Nigerian Exchange gained ₦316.13 billion to close at ₦56.45 trillion.

 Dam Release Triggers Flood Alert In 11 Nigerian States

Naira Rises As CBN Sells $20m To Banks To Reset FX Direction

Dollar To Naira Exchange Rate Today (Fri. April. 28, 2023)

The naira increased by more than 7% to N1,539.65 against the US dollar in the official foreign exchange (FX) market as a result of the Central Bank of Nigeria’s (CBN) decision to reset exchange rate direction.

On Wednesday, market participants were greeted with unexpected US dollar sales to authorised dealer banks, as efforts were made to keep the exchange rate from crossing the N1700 band.

According to spot FX data from the FMDQ platform, the naira rose by 7.05% to N1,539.65 in the Nigerian Autonomous Foreign Exchange Market (NAFEM) after the central bank spent approximately $20 million to purchase the local currency.

Today, the CBN intervened in the market, selling about $20 million at rates between N1,530 and N1,540 to authorised dealer banks to increase FX liquidity in the official window. The NAFEM rate traded within the range of N1,499-NN1,668, closing at N1,546.5 in the spot market last week.

This points towards an appreciation of +2.9% or N46.9 week on week, according to Coronation Research analysts. The investment firm said based on its channel checks, in the parallel market, the naira closed at an average of N1,664 per US dollar.

This widened the gap between the NAFEM and the parallel market rate to 8%, raising the risk of speculative trading activities in the forex market. According to data from FMDQ, total NAFEM turnover increased by +4% or USD44.5 million to close at USD1.2 billion on Friday.

Analysts said there was an inflow of US dollars into the official window in total sum of USD 543.1 million. Following its FX auction sales to banks last week, the CBN accounted for 6.4% of the total inflow.

Foreign portfolio investors (FPIs) contributed 12.3% of the total inflows in the official window. Also, non-bank corporate businesses accounted for 41.2% of the sum on the supply side, with an additional 34.8% FX boost from exporters, and ‘others’ accounted for 6%.

In the global commodities market, oil prices edged lower in anticipation of the Federal Reserve’s upcoming decision on interest rates, which is not expected to provide much support. As of the latest report, Brent prices declined by 0.77% to $73.13, while US benchmark WTI prices dropped by 1.00% to $70.48.

In contrast, gold prices rose due to a weaker dollar and investor caution ahead of the U.S. Federal Reserve’s expected decision to initiate a monetary easing cycle. Currently, gold is trading at around $2,597.70 per ounce.

 Dam Release Triggers Flood Alert In 11 Nigerian States

 Dam Release Triggers Flood Alert In 11 Nigerian States

On Tuesday, the Federal Government informed Nigerians about the upcoming water release from the Lagdo Dam in Cameroon. The announcement, made in a press statement signed by Umar Muhammed, Director General/Chief Executive Officer of the Nigeria Hydrological Services Agency, indicated that the Lagdo Dam authorities will begin controlled water releases starting from Tuesday, September 17, 2024.

The statement noted that the water discharge is expected to gradually increase to 1,000 m³/s over the next seven days, depending on inflows from the upstream Garoua River.

“The Nigeria Hydrological Services Agency wishes to notify the general public that the authorities of the Lagdo Dam in Cameroon have communicated to the agency that they will initiate controlled water releases at a rate of 100m³/s (8,640,000m³/day) starting today, 17 September 2023.

“The water discharge is anticipated to progressively escalate to 1000m³/s over the next seven days based on the inflow from the upstream Garoua River, which serves as the primary source into the reservoir and a significant tributary to the Benue River.

“Nonetheless, the dam operators have indicated that the planned water discharges will be gradual to avoid surpassing the conveyance capacity of the Benue river system and triggering substantial flooding downstream in Nigeria. The overflow from the Lagdo Dam is projected to cease once there is a noticeable reduction in the flow into the Lagdo reservoir,” the statement read in part.

The agency, however, stated that there was no need for concern.

“The agency unequivocally states that there is no need for alarm as major flooding downstream in Nigeria is not anticipated since the flow levels along the Benue River are still within cautionary limits.

“Nevertheless, it is of utmost importance for all states bordering the Benue River system, namely: Adamawa, Taraba, Benue, Nasarawa, Kogi, Edo, Delta, Anambra, Bayelsa, Cross Rivers, and Rivers, along with the government at all levels (federal, state, and LGAs) to heighten their vigilance and implement appropriate preparedness measures to mitigate potential flooding impacts that may arise due to an increase in flow levels of our major rivers during this period.

“The agency will continue to diligently monitor the flow conditions of the transboundary Benue River and the national inland rivers, and consistently provide regular updates on water levels across major rivers to prevent further flood disasters,” it added.

The Lagdo Dam, situated in Northern Cameroon on the Benue River, has been a source of concern for Nigerians due to its potential impact on the country. The dam’s reservoir covers an area of 586 square kilometers. As the entry point of the Benue River, the release of water from Lagdo Dam affects numerous states in Nigeria.

 A devastating flood struck Borno State, resulting in the loss of over 30 lives and affecting more than a million residents, happened last week.

This article was written by Tamaraebiju Jide, a student at Elizade University

CBN Retains 5% Limit On Ways And Means Advances To FG

Interbank Rates Drop as ‘Bullet Payments’ Enhance Liquidity

Tinubu Orders Osayande To Investigate CBN, Related Affairs

Interbank rates fell as liquidity in the financial system was boosted by bullet payments from maturing OMO bills and inflows from Federal Government of Nigeria (FGN) bond coupons.

The market saw a substantial inflow of N86 billion from FGN bond coupons, in addition to further inflows from OMO bills. This increased liquidity in the money market led to a decrease in rates, following a period when local deposit money banks had sought funding support, recently in the past week, from the Central Bank’s borrowing window.

The majority of activities at the Central Bank window were driven by Tier-2 banks borrowing, while banks with excess cash sought lower rates for their surplus funds.

Banks utilized the standing lending facility for borrowing at higher rates, while returns on deposits held at the Central Bank were lower.

Investment analysts said Banks requires funding to meet up their respective business and regulatory demands on daily basis.

Traders reported that system liquidity improved on Tuesday, although it remained in the negative territory. Analysts said inflows from OMO maturities and FGN bond coupons drove the mild improvement in the liquidity balance in the financial market.

Nigerian interbank offered rates fell across all tenors, reflecting increased system liquidity, according to Cowry Asset Limited.

FMDQ platform data reveals that the Open Repo Rate (OPR) decreased by 74 basis points to 30.46%, while the overnight lending rate dropped by 73 basis points to 31.00%.

AIICO Capital Limited analysts forecast further improvements tomorrow as additional coupon payments are anticipated to enter the system.

This article was written by Tamaraebiju Jide, a student at Elizade University

Obasanjo Reveals How FG Generated $1.2 Billion From Telecom Licenses

Rep Calls For Multinationals To Pay Climate Tax

The Nigerian government has urged multinational corporations and wealthy individuals to contribute to the fight against climate change in Africa by paying tax, specifically highlighting the need for financial support for victims of recent flooding in Borno and Zamfara States.

Benjamin Kalu, Deputy Speaker of the House of Representatives and leader of the Nigerian delegation to the Pan African Parliament’s special session in South Africa, on behalf of Nigeria, made this call on Tuesday.

Kalu, responding to a paper titled “The impact of climate change and Africa’s strategic pursuits going into COP,” delivered by the Director of Programmes and Research, Pan African Climate Justice Alliance, Mr Charles Nyambura, advocated a global climate tax to support climate adaptation in the world’s most vulnerable regions, especially Africa.

The Deputy Speaker who bemoaned the recent flooding in Borno, Zamfara states among others, said that the climate tax is to help mitigate the impacts of climate change on the continent.

In a statement issued on Tuesday by the Chief Press Secretary to the Deputy Speaker, Levinus Nwabughiogu, Kalu was quoted as saying that “Africa is disproportionately impacted by climate change despite contributing just 3.8 per cent to the global share of greenhouse gas emissions in contrast to 23 per cent by China, 19 per cent by the US, and 13 per cent by the European Union.

“Climate change undermines Africa’s progress towards sustainable development goals, hindering economic growth and human wellbeing.

“Presently, nearly 600 million Africans lack access to electricity according to the World Bank, which hinders economic growth, industrial development, and access to essential services. Furthermore, Africa faces a widening energy gap compared to South Asia and Latin America, which have made more significant progress in bridging their energy deficits.”

The lawmaker added that Nobel Prize-winning economist, Esther Duflo, has “Proposed a global climate tax to support climate adaptation in the world’s most vulnerable regions, such as Africa.

“Duflo’s proposal includes a tax on multinational corporations and billionaires to fund climate adaptation in low-income countries, helping them prepare for and mitigate the impacts of climate disasters.”

He highlighted that the necessity for climate resilience was starkly underscored between August and September 2024, when intense rainfall led to widespread flooding across several Local Government Areas in Borno State, Nigeria.

The floods severely impacted various communities, displacing many residents and causing extensive damage to infrastructure, crops, and shelters.

“In Borno State alone, the International Organization for Migration’s Displacement Tracking Matrix identified 320,791 individuals in 65,731 households affected by the floods across 19 local government areas. These include 157,274 internally displaced persons and 108 returnees, all severely impacted by the floods,” Kalu stated.

He also pointed out the severe impact of food insecurity, worsened by climate change, conflicts, and economic disruptions.

Kalu stressed that Africa’s agricultural potential is still largely underutilized and urged for broad agricultural reforms and greater investment in agribusiness to address the escalating food crisis.

Furthermore, Kalu highlighted the essential role of education in shaping the continent’s future, in line with the African Union’s Agenda 2063 goals.

“We cannot speak of a prosperous Africa when our education systems are failing to prepare our youth for the challenges and opportunities of tomorrow,” Kalu added, calling for unified education policies across the continent.

This article was written by Tamaraebiju Jide, a student at Elizade University

Obasanjo Reveals How FG Generated $1.2 Billion From Telecom Licenses

Obasanjo Reveals How FG Generated $1.2 Billion From Telecom Licenses

Obasanjo Urges INEC To Correct Electoral Mistakes

In telecom license fees from major operators, including MTN, Globacom, Econet (now Airtel), and Etisalat (now 9mobile),  the Federal Government earned approximately $1.2bn during the inception of mobile technology in Nigeria.

In establishing the telecom industry in 2000, these license fees were pivotal; a sector that is now crucial to Nigeria’s economy.

Former President Olusegun Obasanjo disclosed this in Lagos, on Tuesday, at the book launch and exaugural lecture of Dayo Oketola, former Editor of The PUNCH.

He revealed that his administration rejected attempts to sell telecom licenses for a mere $3m, instead ensuring they were sold at their true value of $280m each to MTN, Glo, and Econet.

Notably, Etisalat, the last entrant into the telecom sector, paid a substantial $450m for its license. This strategic move generated a total of $1.2bn to the Federal Government through the Nigerian Communications Commission.

“When the first three mobile telecom companies came in, they were offered licenses. The cost of one of these licenses was $280m, but soon, the same license was going to be offered for just $3m by some individuals in the previous government who wanted to give out these licenses to their friends for just $3m,” Obasanjo said.

He said while these investments have driven significant progress, creating the right conditions remains essential for attracting future investments and sustaining sector growth.

“There are still opportunities today for Nigeria to attract investments, but the right conditions need to be created for that money to come in again,” he stated.

MTN, a South African firm, began operations in Nigeria in August 2001 and quickly became a market leader. Globacom entered the market in 2003, introducing a pioneering per-second billing model that compelled MTN and Econet to follow suit.

Econet Wireless Nigeria, launched in 2000, initiated commercial GSM services on August 5, 2001. In 2007, Emerging Markets Telecommunications Service, trading as Etisalat, joined the Nigerian telecom market.

Speaking further, he acknowledged that the competition among operators (MTN, Econet, Glo) significantly shaped the sector.

“We achieved competition. The three of them were competing. And of course, the one who had the upper hand in terms of spread, I think, was MTN, followed by Glo and then there was Econet. Econet made the heart quarrel among themselves a bit, but eventually, they sorted themselves out. Well, when they came, they came last,” the ex-president stated.

Landlines were the primary means of communication, before the birth of mobile telephony in Nigeria around 2000. During this period, landlines were limited and often considered a luxury, accessible mainly to the wealthy.

The former head of state reflected on the significant challenges faced by Nigerians, highlighting that despite substantial investments, the country managed to secure fewer than 500,000 phone lines due to limited infrastructure.

“The story of communication telecommunication, particularly mobile communication telecommunication, was a very interesting one, because before mobile telecommunication, we’d done a lot of things.

“We spent a lot of money. We have had companies we have invited from America, from France, even from Britain, and we did not get more than 500,000 lines with all that we have done, and people have to queue at the telephone,” Obasanjo said.

This article was written by Tamaraebiju Jide, a student at Elizade University

NNPC Updates Estimated Petrol Price Breakdown

CBN Retains 5% Limit On Ways And Means Advances To FG

Tinubu Orders Osayande To Investigate CBN, Related Affairs

The Central Bank of Nigeria (CBN) has announced that it will maintain its Ways and Means Advances to the Federal Government at a 5% limit for the fiscal years 2024-2025. This decision published by the Apex bank on Tuesday, is outlined in the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the upcoming fiscal period. 

This development contradicts a recent bill passed by the National Assembly, which sought to increase the maximum borrowing percentage from 5% to 10%.

The Central Bank of Nigeria’s commitment to maintaining the original limit underscores its dedication to managing budgetary deficits within established legal frameworks, despite legislative efforts to increase borrowing capacity.

According to the guidelines, the CBN can advance up to five per cent of the previous year’s actual collected revenue to the Federal Government, which must be repaid within the year to prevent a long-term fiscal burden.

The guideline aligns with the MTFF, under which the CBN will manage expectations, implement time-consistent policies, address shocks to support the ongoing recovery and ensure the country’s macroeconomic stability.

The document stated, “Ways and Means Advances shall continue to be available to the Federal Government to finance deficits in its budgetary operations to a maximum of 5.0 per cent of the previous year’s actual collected revenue. Such advances shall be liquidated as soon as possible and shall in any event be repayable at the end of the year in which it was granted.”

The CBN added that the advances would now be determined after recognising the sub-accounts of the various MDAs, which are now linked to the Consolidated Revenue Fund to arrive at the FGN consolidated cash position.

“Consistent with the banking arrangement of Treasury Single Account, Ways and Means Advances would now be determined after recognising the sub-accounts of the various MDAs, which are now linked to the Consolidated Revenue Fund to arrive at the FGN consolidated cash position. This would continue in the 2024/2025 fiscal years,” It noted.

Ways and Means Advances are loan facilities provided by the Central Bank of Nigeria (CBN) to support the government during temporary budget shortfalls. These advances are subject to legal limits.

As stipulated in Section 38 of the CBN Act, 2007, the CBN can extend temporary advances to the Federal Government to address short-term budget revenue deficiencies, with the interest rate determined by the CBN.

In 2023, there was serious controversy concerning the amount approved by the Central Bank to the government. The former CBN Governor, Godwin Emefiele, without approval from the National Assembly, allegedly printed the sum of N22.7tn for former President Muhammadu Buhari under Ways and Means.

Experts believe the large amount contributes to the high inflation rate and increased money circulation in the economy.

 Olayemi Cardoso, the CBN Governor, at a senate Committee in February, 2024, announced that the Central Bank of Nigeria (CBN) would no longer provide Ways and Means Advances to the Federal Government until the outstanding loans are repaid. Olayemi stated that this decision is part of the apex bank’s measures to address the current economic challenges facing the country.

It is worth noting that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, recently reported that the Federal Government had repaid N7.3 trillion in Ways and Means Advances to the CBN.

In a 218-page document, the CBN outlined potential challenges for the fiscal year, highlighting that the removal of fuel subsidies, lower import bills, and increased external debt servicing obligations could pose risks to the growth of external reserves in 2024/2025.

This article was written by Tamaraebiju Jide, a student at Elizade University

Liquidity Squeeze Drives Up Interest Rates

Dollar-to-Naira Exchange Rate For 18th September 2024

Dollar To Naira Exchange Rate For 5th Dec 2023

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 Wednesday, September 18, 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 N1650 and sell at N1660 on Tuesday 17th 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 RateN1650
Selling RateN1660

Dollar to Naira CBN Rate Today

Dollar to Naira (USD to NGN)CBN Rate Today
Buying RateN1651
Selling RateN1652

Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.

Quickteller Paypoint’s 50 Percent Discount On CAC Registration: A Game-Changer For POS Agents

Quickteller Paypoint’s 50 Percent Discount On CAC Registration: A Game-Changer For POS Agents

Quickteller Paypoint Empowers Nigerians, Recruit More Agents To Grow Economy

Every entrepreneur dreams of having a bankable partner who says, “I’ve got your back; let’s bring your dreams to life.” But let’s be real, this is often elusive because people hardly say what they mean or mean what they say.

However, there’s an exception to the rule! Quickteller Paypoint, a leading payment platform under the Interswitch Group, is a ‘sure guy’ that will not ghost you. No cap! Some people can be quick to promise to be of help and disappear when it matters most, but not Quickteller Paypoint. They are Quicktellers as well as Quickdoers!

Quickteller Paypoint is always helping its agents turn their dreams into reality by giving them one less thing to worry about. As part of its ongoing efforts to empower and support its POS agents, Quickteller Paypoint recently organised Regional Engagement Forums across major cities in Nigeria, including Lagos, Port Harcourt, Abuja, and Anambra.

The headline moment? During these events, the company offered a generous 50 per cent discount on Corporate Affairs Commission (CAC) registration fees for agents who hadn’t registered their businesses before the extended September 5, 2024, deadline. Talk about a lifesaver! As one agent excitedly put it: Who no like better thing? Quickteller Paypoint na baba!

Beyond the discount, Quickteller Paypoint has demonstrated its recognition of the crucial role its agents play in advancing financial inclusion within their communities. The recent events are a testament to this commitment, as agents felt genuinely supported, seen, and valued. With Quickteller Paypoint, agents don’t just get a service—they get a dedicated partner.

At each forum, agents participated in lively educational sessions and Q&As, where they got the chance to ask burning questions and receive expert advice and valuable insights directly from Quickteller Paypoint representatives. It was a prime opportunity for the agents to level up their businesses.

Quickteller Paypoint’s 50 percent CAC discount was more than just financial relief; it was a strategic move to empower its agents, promote compliance, and strengthen businesses. This initiative emphasises Quickteller Paypoint’s unwavering commitment to ensuring its agents thrive, fostering growth, and advancing financial inclusion across Nigeria.

US 10-Year Treasury Yield Surges To 3.63%

Crude Oil Price Increases As Refineries Reduce Run Rates

Oil prices soared in the global commodities market as refineries throughout the world began to cut run rates. Brent crude is trading 0.3% higher at $72.93 a barrel, while WTI, the US benchmark, is up 0.5% to $70.44.

Oil prices have risen and fallen due to imbalances in the global commodities market. There is also sentiment, or rather expectation, that a US rate cut will lower energy costs in the face of an uninspiring Chinese crude demand picture. China data implies that demand will stay weak in the short term until GDP catches up.

Analysts projected that demand would rise after the US Federal Reserve cut interest rates at its meeting from September 17 to 18.

Brent settled 1.59% higher yesterday, possibly as shorts in the market cover their positions ahead of Wednesday’s FOMC meeting, ING said in a Tuesday note.

Analysts maintained that the global commodities market is still torn between a 25 basis point or 50 basis points cut from the US Fed.

There are also lingering concerns over Libyan oil supply, which continues to be disrupted due to political fighting over the central bank’s control, according to ING.

In addition, in the US, a little more than 12% of US Gulf of Mexico oil production remains shut-in following Hurricane Francine.

Refinery margins around the globe remain under pressure. Unsurprisingly, this weakness is leading refiners to reduce their run rates.

In Spain, it is reported that Repsol will be cutting run rates by around 5%. While in Italy, ENI will reportedly reduce run rates by as much as 10% at some of its refineries.

ING commodities strategists said a reduction in run rates is obviously not great for crude oil demand. European natural gas prices came under further pressure yesterday. TTF settled 4.4% lower on the day and finished at its lowest level since late July. Warmer weather weighed on prices.

EU storage continues to tick higher despite reduced flows from Norway, where heavy scheduled maintenance is ongoing. Undeniably, storage builds have slowed significantly due to these reduced flows, but EU storage still stands at more than 93% full.

NNPC Updates Estimated Petrol Price Breakdown

US 10-Year Treasury Yield Surges To 3.63%

Dollar

The US 10-year Treasury yield increased to 3.633%, its highest level since May 2023, as traders reviewed the most recent retail sales data ahead of the Federal Reserve’s announcement.

Retail sales in the United States increased 0.1% in August, compared to projections of a 0.1% decrease. However, sales excluding automobiles and gasoline fell short of expectations.

The report comes as Federal Reserve policymakers begin a two-day meeting to determine how much to decrease interest rates, which are now at a two-decade high of 5.25%–5.5%.

The market is already pricing a 25 or 50 basis point rate drop in September, with the greater reduction intended to avert additional labor market weakness.

Analysts said the Federal Reserve’s upcoming first interest rate cut, which is widely expected at Wednesday’s meeting, should support fixed income.

5.5%,The Federal Reserve is getting ready to cut interest rates this week for the first time in about four years. Presently, the benchmark rate in the US is sitting at 5.5% but expectations point to a cut in the ballpark of 25 basis points to 50 basis points.

NNPC Updates Estimated Petrol Price Breakdown

NGX Equities Market Cap Profit Rises By N129bn As FBNH, FMN Rally

Nigerian Stock Exchange

The Nigerian Exchange’s (NGX) equities market capitalisation grew by approximately N129 billion as shares of FBN Holdings (FBNH) and Flour Mills of Nigeria (FMN) soared.

Resulting in an increase in year-to-date return, the local bourse began the new week on a strong note, with advances noted across key indexes. The market index rose 0.23% as investors bought financial services and consumer goods stocks.

The All-Share Index gained 229.02 basis points to settle at 97,685.64 points. Stockbrokers said the market’s bullish start to the week was fueled by high investor interest in some medium and large-cap stocks. The leading gainers are FBNH, FLOURMILL, GEREGU, and others.

Details from the local bourse revealed that market activities improved. The total volume and total value traded increased by 14.14% and 45.31% respectively. According to Atlass Portfolios Limited, approximately 471.30 million units valued at ₦9,397.93 million were transacted across 12,066 deals.

JAPAULGOLD was the most traded stock in terms of volume, accounting for 15.36% of the total volume of traded in the equities market. Other volume drivers include TRANSCORP (11.00%), FBNH (9.95%), UBA (9.70%), and OANDO (3.53%).

FBNH emerged as the most traded stock in value terms, with 15.51 of the total value of trades on the exchange. In the market, FLOURMILL and FBNH topped the advancers’ chart with a price appreciation of 10.00 percent each.

Other gainers include VITAFOAM with (+9.94%) growth, CAVERTON (+9.84%), HONYFLOUR (+9.82%), SUNUASSUR (+9.68%), UNIONDICON (+9.59%), and eighteen others.

Twenty-six stocks depreciated in the equities market. ETERNA was the top loser, with a price depreciation of -10.00%. Other decliners include OANDO (-9.94%), TANTALIZER (-9.86%), MECURE (-9.63%), MANSARD (-3.61%), and TRANSCORP (-1.79%).

Given the trading direction, the market breadth closed marginally negative, recording 25 gainers and 26 losers. Also, the sectoral performance was negative, according to details obtained from the equities market.

Stockbrokers said three out of the five major market sectors ended the trading session in red. The insurance sector which declined by -1.52% followed by the Oil & Gas sector which lost -0.62% while the insurance sector dipped by -0.01%.

The banking and consumer goods sectors advanced by 1.45% and 0.94%, respectively. Overall, the equities capitalisation of the Nigerian Exchange rose by₦128.81 billion to close at₦56.13 trillion.

65 Million SIMs At Risk Of Disconnection Due To Unlinked NINs

Naira Stops At Red Line As Exchange Rate Plunges By 7%

Federation Account Amasses Over ₦5trn In 6months- RMAFC

Nigeria’s local importers and enterprises with foreign currency liabilities will continue to experience difficulties in the currency markets, with a substantial daily depreciation recorded in the official window on Tuesday.

The Nigerian naira has experienced another record daily exchange rate loss in the foreign currency market due to persistent mismatches between supply and demand for US dollars.

In the official FX market, the local currency depreciated or lost value by more than 7% every day. The naira movement dashed hopes for an exchange rate recovery in the short to medium term.

Economic uncertainties and the monetary policy strategists have become major contributors to the ongoing exchange rates worries across FX markets. According to FX spot data obtained from the FMDQ platform, the exchange rate worsened by more than 7% as demand, which appears to be seasonal in nature, overshadowed the volume of US dollars supplied.

The naira depreciated by 7.12%, closing at ₦1,656.49 per US dollar at the official market. The latest exchange rate plunged came at a surprise given that the apex bank sold US dollar to banks last week,

And also, the Central Bank of Nigeria’s (CBN) FX auction sales to Bureau de Change (BDC) operators had near zero effects on exchange rate at the informal segment. Critics maintained that FX liquidity has remained downside to exchange rate recalibration in the currency markets. The CBN moves to defend the naira continues to face hiccups.

The apex bank has been unable to maintain stance on FX auctions using a particular approach. Moves to defend the naira has remained intermittent. Analysts said the apex bank, understandably, appears to be under pressure from using external reserves to support the naira.

Despite $900 million in FX inflows from the recent domestic US dollar bond sales, the market has only seen the exchange rate worsening. Data from the CBN showed that Nigeria’s gross external reserves balance climbed to $36.942 billion, translating to more than 12 months of import cover based on latest trade statistics.

The huge chunk of the balance in the nation’s external reserves have been pledged against various deals – swap and oil backed loans etc. In the parallel market, the naira closed at ₦1,635 to the US dollar, down by N5 from N1630 spot rate previously quoted.

Elsewhere, the U.S. crude oil traded above $71 per barrel on Tuesday. Optimism is growing that the Federal Reserve will cut interest rates, and production is still disrupted in the Gulf of Mexico.

Brent prices increased by 1.12% to $73.87, while WTI prices climbed by 1.45% to $71.54. However, Gold prices eased slightly after reaching an all-time high in the previous session as the dollar and Treasury yields edged higher. Currently, gold is trading at around $2,591.10 per ounce.

65 Million SIMs At Risk Of Disconnection Due To Unlinked NINs

FAAC: FG, States, LGCs Split N1.203trn For August

FAAC Disbursement

The Federation Accounts Allocation Committee (FAAC) has distributed N1.203 trillion in revenue to the Federal Government, states, and Local Government Councils.

According to a statement published by FAAC following its meeting on Tuesday, the N1..203 trillion total distributable revenue included statutory revenue of N186.636 billion and Value Added Tax (VAT) revenue of N533.895 billion.

It also included earnings from the Electronic Money Transfer Levy (EMTL) of N15.017 billion and the Exchange Difference of N468.245 billion. The communiqué stated that total income of N2.278 trillion was available in August.

It said that total deduction for cost of collection was N81.975 billion, while total transfers, interventions and refunds were N992.617 billion.

According to the communiqué, gross statutory revenue of N1.221 trillion was received for the month of August.

” This was lower than the sum of N1.387 trillion received in July by N165.994 billion.

“Gross revenue of N573.341 billion was available from VAT in August. This was lower than the N625.329 billion available in the month of July 2024 by N51.988 billion,” it said.

The communiqué said that from the N1.203 trillion total distributable revenue, the Federal Government received the sum of N374.925 billion and the state governments received total sum of N422.861 billion.

“The LGCs received a total sum of N306.533 billion, and a total sum of N99.474 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.

According to the communique, from the N533.895 billion VAT revenue, the Federal Government received N80.084 billion, the State Governments received N266.948 billion and the LGCs received N186.863 billion

It said that a total sum of N2.252 billion was received by the Federal Government from the N15.017 billion EMTL. The state governments received N7.509 billion and the LGCs received N5.256 billion.

It said that Oil and Gas Royalty, Petroleum Profit Tax (PPT), VAT, Import and Excise Duties, EMTL, CET Levies and Companies Income Tax (CIT) all recorded decreases. It said that the balance in the Excess Crude Account (ECA) was 473,754.57 dollars.

Liquidity Squeeze Drives Up Interest Rates
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