The Africa Leadership Group (ALG) has called on the Federal Government to adopt a phased approach to alleviate immediate hardships faced by citizens.
In a statement, it said this was necessary in response to Nigeria’s recent petroleum subsidy removal.
Emphasising the well-being of Nigerians, ALG advocated for measures that addressed fundamental issues arising from subsidy removal.
It recalled that President Bola Tinubu’s announcement on 29 May regarding the removal of subsidy on petrol resulted in soaring prices of goods and services, causing hardships for many Nigerians.
ALG urged the government to implement mitigating measures swiftly to protect vulnerable households from the adverse effects of fuel price increases.
With plans to disburse N500bn over six months to 12 million households, ALG stressed the need for careful consideration of citizens’ top priorities.
The organisation highlighted investments in health, education, and infrastructure to support the poor, as well as expanding safety net programs to shield vulnerable populations from the immediate impact of subsidy removal.
According to the statement, “ALG’s survey findings and suggestions from citizens underscore the importance of job creation through modular refineries, support for SMEs and smallholder farmers in manufacturing and agriculture sectors, and improved transportation services.
“Additionally, the organisation advocates for targeted investments in regions affected by terrorism, food security initiatives, and climate-smart agriculture pilot projects across different geopolitical zones.
“A fair and equitable transition to a sustainable and economically secure future is crucial for Nigeria’s prosperity.”
The statement added that, “By adopting a phased approach to the subsidy removal and strategically investing in the citizens’ needs, the government can ensure a stable and prosperous future for the nation.”
ALG’s called for a phased approach and targeted investments to protect vulnerable populations and secure Nigeria’s future amidst soaring fuel prices.
The organization stressed the significance of careful planning and implementation of measures to mitigate the immediate effects of the subsidy removal while simultaneously making long-term investments to achieve this goal.
The Nigerian Exchange (NGX) equities section fell further on Tuesday as investors continued to retreat over lackluster results performance and FX losses. As massive currency losses hurt corporate profitability, equity investors have been racing for the exit.
According to several unaudited financial records for the first half of 2023 presented to the Nigerian Exchange, stock market movers saw their earnings suffer.
Today’s trading loss has brought the local bourse’s negative mood streak to five trading days. According to data from the local exchange, market indices have decreased sharply amid a strong negative grip.
The Nigerian Exchange All-Share Index fell by 145.32 basis points today, reflecting a -0.23% dip to close at 64,192.20. Now, , the year-to-date return has moderated to 25.25%, still ahead of the annual inflation rate in Nigeria.
Equities investors lost 79.08 billion, or -0.23%, to close at 34,932.38 trillion, down from 35,011.46 trillion yesterday, according to Atlass Portfolios Limited’s market report. Market activity, on the other hand, increased, with total volume and total value traded increasing by +13.17% and +19.09%, respectively. According to stockbrokers, 762.10 million units worth $7,710.21 million were traded in 7,935 transactions.
AIICO was the most traded stock in terms of volume, accounting for 41.30% of total trade volume, followed by UBA (7.15%), MANSARD (6.41%), ETI (5.50%), and FCMB (3.75%) to round out the top 5.
MTNN was the most traded stock in value terms, with 12.29% of the total value of trades on the exchange. ABBEYBDS, and DANGSUGAR topped the advancers’ chart for today with a price appreciation of 10.00 percent each. The two stocks were trailed by CHELLARAM (9.87%), TANTALIZER (+9.68%), SUNUASSUR (+9.09%), MULTIVERSE (+8.72%), and sixteen others.
Thirty-seven stocks depreciated, where JOHNHOLT was the top loser, with a price depreciation of -10.00% to close at ₦1.80. JAPAULGOLD lost 9.71%, GUINNESS dipped by 8.26%, CUTIX fell by 8.03%, HONYFLOUR tumbled by 7.08% and WEMABANK declined by 3.33%.
All in, stock market breadth closed negative, recording 22 gainers and 37 losers while the sector performance closed positive.
Trading records showed that two of the five major market sectors were up, which includes the Insurance sector (+0.95%) and the Consumer goods sector (+0.54%), while the Consumer goods sector dropped by -1.94%. The Industrial and Oil and gas sectors closed unchanged.
For the second year in a row, Avanti Communications has been recognized as the market-leading high-throughput satellite capacity partner in sub-Saharan Africa.
According to a survey, the 20th iteration of the NSR Satellite Capacity Supply and Demand Analysis showed that Avanti currently held a market share that was more than double that of its closest rival.
“NSR’s annual report is one of the satellite industry’s most trusted and comprehensive sources for satellite capacity analysis, offering insight into key market developments and dynamics,” it stated.
According to the statement, Avanti had made a significant commitment to Africa. The company has ambitions to accelerate growth across the region through local partnerships and the rollout of connectivity solutions; connecting rural communities and improving network resiliency for critical communications infrastructure is central to this strategy.
It said till date, Avanti had connected more than 1,000 villages and schools across Africa, providing services in Nigeria, Kenya, South Africa, Tanzania, Ghana, Angola, Côte d’Ivoire, Cameroon, and South Sudan.
The company has plans to connect a further 10,000 sites over the next five years across Africa, impacting millions of lives and enabling communities to enjoy a connected life.
The Chief Executive Officer, Avanti Communications, Kyle Whitehill, said, “Africa is a major focus for us and so we are delighted to be recognized as the market leader, but we won’t stop there. For us, Africa’s potential is limitless and the role that we can play in unlocking this is providing connectivity solutions.
“Connectivity is an enabler that provides vital resources and opportunities for individuals, businesses, and communities to thrive, which is why we won’t stop until we have connected the 871 million people currently living without a basic internet connection.
“Avanti has invested over $800m in Africa and already has a growing footprint across the continent. More than a fifth of the company’s employees are based in Nigeria, Kenya, South Africa, Angola, and Benin.”
The Nigerian Civil Aviation Authority (NCAA) has urged local airline operators to partner with their foreign airlines to develop the country’s aviation operations and industry.
The Managing Director of NCAA, Capt. Musa Nuhu, disclosed this while speaking at the 27th League of Aviation and Airports Correspondent Conference, titled ‘Aviation Industry: Changing Times, Changing Strategies’, in Lagos recently.
According to him, until Nigerian airlines embrace collaboration, they will continue to be more fragmented and less competitive with individual identities.
Capt. Nuhu, who was represented by the Director of Airworthiness Standard, Gbolahan Abatan, said despite the numerous challenges, Nigeria’s air transport was making tremendous progress.
He said, “Synergy, collaboration, cooperation or merger is the rule of the game. I want to encourage Nigerian airlines to avoid I-want-to-do-it-alone as reflected in their lone-wolf operational tactic. While I want to appreciate our operators for a job well done in terms of spirit and impact, we urge airlines to partner with their willing foreign counterparts through code sharing in developing Nigeria’s aviation industry.
“I remember that at a phase, Air France interlined with Aero Contractors. By nature and approach, we should manifestly embrace collaboration and exhibit sustained commitment, lest average Nigerian carriers become ever more fragmented and less competitive with mere individual identities.
“As aviation is global, we have no choice but to keep aviation working by adopting workable initiatives and rightful changing strategies to contend with ever-changing times.”
He said he was aware that the path was bumpy with financial dire straits calling for concerted efforts.
“Let me repeat again that the current fate of the aviation industry could not be treated in isolation from the economic environment that it is operated. What is happening to aviation is happening to all sectors.
“All these challenges notwithstanding, as the regulator, safety remains a priority, non-negotiable and it supersedes all other considerations for us. We are neither a police agency of the industry nor in existence to close airline businesses. NCAA is willing to support the airline to get out of the woods,” he maintained.
A new study from the National Bureau of Statistics (NBS) and the Financial Access Initiative research center of New York University has revealed that many small businesses earn N223,250 in monthly revenue.
According to the study, Nigerian firms earn less than firms in the other countries studied. It stated that half of the firms it studied earned less than N223,250 in monthly revenue (PPP USD 1,547).
This is about half (46 per cent) of the firms surveyed reported, holding a loan of some kind, most of which were from informal sources, including suppliers, friends, and family.
The report, titled, ‘Nigeria small firm diaries’, was supported by the Mastercard Center for Inclusive Growth, the Bill & Melinda Gates Foundation, and the Argidius Foundation was a global research project that provided insight into the financial lives of small businesses in seven countries across Latin America, Sub-Saharan Africa, and Asia.
The study in Nigeria collected data from 161 small businesses in urban, suburban, or semi-rural areas surrounding three locations: Enugu, Kaduna, and Lagos, between August 2021 and August 2022, and was focused on three industries—light manufacturing, agri-processing, and services.
Commenting on the study, the Statistician General, NBS, Adeyemi Adeniran, said, “As the premier agency for the collection, publication, and dissemination of official statistics on Nigeria, NBS was proud to collaborate with the international research team for the Small Firm Diaries project.
“This study is unique in Nigeria—it is the first large-scale project to gather high-frequency data from businesses of this size—and will allow policymakers to better understand and address the challenges facing these businesses.”
The study disclosed that Nigerian small firms experience volatile earnings as both revenue and expenses fluctuate from month to month. It noted that many Nigerian firms have high rates of bank account ownership.
It said, “Compared with other countries in the study, Nigerian firms have high rates of bank account ownership: 97 per cent of small firm owners in Nigeria have bank accounts for business—more than in Kenya (79 per cent), Colombia (70 per cent), or Indonesia (65 per cent).
The Asset Management Corporation of Nigeria (AMCON) has said it recovered N1.6tn from debtors in 10 years of its existence.
This was announced in a statement signed by the Head of Corporate Communications Department, AMCON, Mr Jude Nwauzor, on Tuesday titled, ‘AMCON, NIFU indispensable agencies in the revival of Nigeria’s financial system – Hon. Justice Tsoho’.
According to the statement, the Managing Director, AMCON, Lawan Kuru, said, “Out of total of N4.66tn, we have so far recovered about N1.6tn in the more than 10 years of our existence. We still have a long way to go! About 350 obligors account for N3.96tn, which is above 84 per cent of total outstanding amount.
“Our debt is in the balance sheet of the Central Bank of Nigeria, and therefore a threat to the economy. After recovery and disposal, funds are paid directly into our CBN account. Recovery and disposal of assets have so far contributed about N1.6tn towards settling our obligation.”
The statement added that the Chief Judge of the Federal High Court, Justice John Tsoho, was currently in London, United Kingdom, in the company of other Federal High Court judges from Nigeria to attend the annual training for this class of top judicial officers, which was declared open on Monday by High Commissioner for Nigeria in the United Kingdom, Sarafa Isola.
AMCON was led by Kuru; while Nigerian Financial Intelligence Unit, was led by Mr Modibbo Tukur.
Tsoho in his welcome address at the commencement of the training, said, “An effective judicial system is the bedrock of any civilised society. Thus, it is necessary to equip ourselves with the inherent skills for effectual macro and micro economic adjudication in the virtual era. Increased online transactions with accompanying economic value will trigger diverse legal issues. Therefore, the court must be prepared for this nascent technology.”
In keeping with its recently announced ambitious 10-year growth strategy, leading public relations and reputations management consultancy, Chain Reactions Africa has announced the appointment of Nkiru Oguadinma, an accomplished Marketing and Business Growth Expert as its Executive Director, Growth. In her new role, Nkiru will be part of the executive management team and responsible for driving the company’s growth plan across key sectors in Africa.
The Nigerian marketing communications industry has been on the path of resurgence, following the general downturn occasioned by the COVID-19 pandemic which affected businesses globally. But since January 2022, Chain Reactions Africa has however been bullish in its growth plan following its unveiling of a 10-year growth plan aimed at using the diversity of its team members’ skills across advisory, advertising, digital marketing, experiential marketing, audio visual production and brand management in extending its business portfolios to service a wider clientele base beyond public relations.
With her with over 20 years’ experience working across the different sectors of the economy, including banking, healthcare, insurance, public sector and the marketing communication industry, Nkiru will drive Chain Reactions Africa’s efforts to build significant connections, drive transformative growth and unlock full potentials of the organisation.
Nkiru who has managed a combined business operation yielding billions of naira in gross billing, wields an uncanny ability and skill-set to provide creative, innovative, enthusiastic and forward-thinking leadership and guidance. These experiences have come in Corporate Strategy, Marketing & Communications, Corporate Communication, Brand Management, Consumer Experience Design, Revival and Management, Experiential Marketing, Business Development, Media Strategy, Planning & Buying, PR and Commercial Excellence, serving brands across spectrum.
She has worked on brands such as NIMASA, NDDC, Rivers State Government, Edo State Government, Ministry of Agriculture, Total Nigeria, NLNG, FCMB, Peugeot, AIICO, Hygeia, First Bank, Unilever, DUSSE, PZ Cussons, Bristow, South African Airways, British Council, Red Bull, KFC, UNICEF, NESG, Nigerian Bar Association, Vanguard, Development Bank of Nigeria (DBN), AXA Mansard, Unilever, Hygeia, KEDCO, Phillip Morris International (PMI), Abinbev, Monster, among others.
Commenting on the appointment, Chain Reactions’ Managing Director/Chief Strategist, Israel Jaiye Opayemi said, “Nkiru Oguadinma’s appointment is an integral and intentional part of our bullish strategic 10-year growth plan. She will be harnessing all our talents behind that single minded goal of growth for our business and growth for our clients’ businesses.”
“We are delighted having Nkiru bring her over two decades of rich experience in brand management in the banking sector and her knowledge of the public sector space into our vibrant team.”
Opayemi also disclosed that the growth process has manifested in Chain Reactions Africa opening its Abuja operations close to the seat of government in Asokoro. “We intend to provide strong policy and strategic communications support to the Federal government and other State governments who will need our services.”
Prior to joining Chain Reactions Africa, Nkiru was the Group Chief Operating Officer (GCOO) for RedSlate (Group) Limited, a growth marketing group in Lagos. She has also served as Group Director, Marketing & Business Development for Verdant Zeal Marketing Communications Group, with two international branches in key locations across the West Coast of Africa.
She was the Chief Marketing Officer (CMO) at HYGEIA Group, where she was responsible for the entire marketing function, overseeing brand and marketing concerns for Lagoon Hospital, Hygeia HMO, and other subsidiaries of the Group. She was also the Group Head, Corporate Communications for AIICO Insurance Plc, and a manager in various capacities at First City Monument Bank (FCMB), Nigeria.
Nkiru is a Board member of the Thrive MFB, Nigeria. She chairs and has served on select committees that enables her to contribute significantly to Corporate Strategy and Operations Management of reputable organisations in both public and private sectors.
An Associate member of the Chartered Institute of Marketing (CIM) UK, Nkiru has an MBA from the Metropolitan School of Business and Management, Manchester UK; an MSc. in Human Resource Management and Development from the University of Salford, Manchester UK, a BSc. in Marketing from the University of Calabar. A member of WIMBIZ, she has several certifications from the Lagos Business School (LBS), Jack Canfield Coaching Institute (USA), Global Customer Experience Management Professional Group (GCEM) Hong Kong, and Landmark Education USA, among others.
A transformational coach and trainer, culture and talent management consultant, organisational development and design expert, Nkiru is also a prolific writer and author of the book, ‘Made in Heaven’. She is also the founder of The MADE Forum which focuses on the development and strengthening of skills, instincts, abilities, and resources that organizations and individuals require to survive, adapt, and thrive in the fast-changing business environment.
Remedial Health, a health tech startup that develops solutions to make Africa’s pharmaceutical value chain more efficient, has secured $12 million in an equity and debt funding round to deepen the penetration of its services in Nigeria and support the delivery of targeted financial services to drive business growth across the country’s pharmaceutical sector.
The $8 million Series A equity funding round was led by US-based venture capital firm, QED Investors and co-led by Ventures Platform, who have now invested in Remedial Health at every funding round since the pre-seed stage. This investment also represents Ventures Platform’s first Series A investment. Ycombinator, Tencent and Gaingels also invested after participating in previous rounds. The $4 million debt funding was led by a consortium of local and international financial institutions.
Across Africa, 85 percent of retail medicine purchases happen at micro-enterprises, typically neighbourhood pharmacies and) and Proprietary Patent Medicine Vendors (PPMVs). For store owners, 90 percent of their wholesale purchases happen in open markets that are largely unfit for consumables and medicines. Store owners also have to endure expensive and time-consuming weekly order cycles that typically amount to two working days to access the inventory they need to stock their shelves. These realities, combined with a predominantly paper-based approach to managing operations, present various challenges that make it difficult to maximise profitability.
Remedial Health operates at the intersection of healthcare, supply chain management, technology and financial services, delivering the digital procurement infrastructure to power effective healthcare distribution for Africa’s 1.2 million pharmacies. Starting in Nigeria, Remedial Health has built an effective operating system for pharmaceutical buyers and suppliers, working with more than 300 manufacturers and serving more than 5,000 hospitals, pharmacies and PPMVs across 34 of Nigeria’s 36 states, with regional hubs to enable a seamless experience across the country.
Store owners can access more than 8,000 vetted products via the mobile app, with same-day delivery and inventory financing to minimise cash-flow friction for routine orders and maximise sales opportunities. The startup also provides facility financing, payment solutions and inventory management solutions that makes it easier for store owners to run their business more efficiently and profitably. For pharmaceutical manufacturers, Remedial Health provides an effective route-to-market for their products, as well as data-driven insights into local markets that can be leveraged for more effective planning and decision making.
This new funding will enable Remedial Health to deepen the reach of these services across Nigeria and deliver more game changing solutions to drive greater efficiency across the pharmaceutical value chain.
According to Samuel Okwuada, CEO and co-founder of Remedial Health, “We are delighted to have raised these funds, particularly with the wider context of the global funding downturn and the wide range of economic headwinds in Nigeria. Our continued growth has put us in a strong position to deliver our mission of creating a tech-enabled, pharmacy-centred healthcare network and we are looking forward to leveraging these funds to achieve more success.”
Gbenga Ajayi, Partner, Head of Africa, QED Investors, said “The success that Remedial Health has enjoyed to date is an indication of the market gap that exists, and the value they provide in providing effective holistic services to thousands of pharmacies across Nigeria. QED is particularly excited about the embedded financial services opportunities within the vertical — the ability to provide payments, embedded lending and other fintech solutions to this underserved but very crucial sector. The Remedial Health team is perfectly positioned to solve this problem because of its unique positioning as a partner across the entire pharmaceutical value chain and the unique backgrounds of the founders as both seasoned phama operators and technology professionals. We are very excited to be on this journey and to support this next phase of the company and to bring our fintech DNA to bear in what is an already positive growth journey.”
Kola Aina, Founding Partner of Ventures Platform, said “We are incredibly proud to have been part of Remedial Health’s journey since the earliest phase of the company’s development. This partnership exemplifies our mission to support category leaders before they become obvious. Remedial Health’s dedication to improving Nigeria’s pharmaceutical value chain is critical and their success in securing this $12 million funding demonstrates their remarkable growth and the management’s tenacity over the years. Our investment in this round represents our continued belief in their mission to deliver financial services to neighbourhood pharmacies and drive deeper growth in the pharmaceutical sector.”
The much awaited names of cabinet members of the President Bola Ahmed Tinubu administration came out finally on July 27, 2023, sixty days after he was sworn in.
Tinubu’s first set of nominations was overshadowed by politicians including ex-governors, serving and former members of the Senate and House of Representatives.
Twenty-five per cent of the nominees are women while 75% are men. The women are Betta Edu, Doris Aniche Uzoka, Hannatu Musawa, Nkiru Onyeojiocha, Stella Okotete, Nkiru Onyeojiocha, Uju Kennedy Ohaneye, and Iman Suleiman Ibrahim. This still falls short of the affirmative action for gender equality.
The National Gender Policy (NGP) has formulated a 35% Affirmative Action (AA) in Nigeria since 2006. This policy demands that 35% of women be involved in all governance processes. The NGP is recognized but is not practiced as the structures and processes to use are not in place.
By regional representation, South-East has 5 nominees namely Uche Nnaji – Enugu; Doris Aniche, Uzoka – Imo; David Umahi – Ebonyi; Nkeiruka Onyejocha – Abia; Uju Kennedy Ohaneye – Anambra.
South-West has just 4 nominees made up of Olubunmi Tunji Ojo – Ondo; Dele Alake – Ekiti; Olawale Edun – Ogun; Waheed Adebayo Adelabu – Oyo; leaving out Lagos and Osun states.
The North-East has Yusuf Maitama Tuggar – Bauchi; Ali Pate –Bauchi; Abubakar Kyari – Borno; Sani Abubakar Danladi – Taraba.
From the North-West we have Badaru Abubakar – Jigawa; Nasiru Ahmed El-Rufai – Kaduna; Ahmed Dangiwa – Katsina; Hannatu Musawa – Katsina; Bello Muhammad Goronyo – Sokoto.
Lastly, we have from the North Central Lateef Fagbemi – Kwara; Muhammad Idris – Niger; Iman Suleiman Ibrahim – Nasarawa; Joseph Utsev – Benue.
In the nomination list, Mr. Tinubu left out 11 states namely Adamawa, Bayelsa, Gombe, Kano, Kebbi, Kogi, Lagos, Plateau, Osun, Yobe and Zamfara. The current list has 7 females, 4 ex governors, 6 ex lawmakers, 3 serving lawmakers, and 3 presidential advisers.
The list has received rave reviews in the media. Some political pundits have commended the list while others have criticized it. The argument has been on what informed the choice of who made the list. Some argued that President Tinubu has not given good representation to the women, having nominated only 7 out of the 28 list. Arguments are also rife on the issue of recycling of spent-out politicians who have been in the corridor of power since 1999.
Compared to the list of Ministers former President Olusegun Obasanjo pulled in 1999 -2007, the Tinubu list does not give vent to technocrats who are not partisans. Pot pouri of opinion is that politicians don’t make good administrators, they compromised principles and non commitant to the state but are self centred.
Between 1999 and 2007, President Obasanjo worked with some Nigerians who were renowned in their various fields and have been tried and tested at global level. They included: Dr Ngozi Okonjo-Iweala, two-term Minister of Finance, brought in from the World Bank where she served as development economist.
Another outstanding performer who was also not a card carrying member of any political party was the Former Minister of Education, Obiageli Ezekwesili brought in from the World Bank where she served as Vice President for Africa. Did they deliver? Yes they did.
However the past 24 years of Nigeria’s democracy has shown that cabinet portfolio performance is never based on the personality, rather it has been on individual capability, competence and the attitude of their principal. We have seen the worst experiences in the last two governments under Presidents Goodluck Jonathan, and Muhammadu Buhari.
They failed in their responsibilities to put round pegs in round holes; where they did, they failed to instill the culture of checks and discipline on their cabinet members. The worse corruption was perpetrated under these two leaders just because they allowed ineptitude, laxity, political affiliation and tribal sentiment to becloud their vision and mission statements.
President Bola Tinubu should therefore be very circumspect in choosing his cabinet members. The list of his 28 cabinet team is made up of both young and old well educated Nigerians. Majority of them are card carrying politicians who have occupied one political office or the other. Some are public administrators whose capacity and competence cannot be established from their previous appointments. They make the list just because they are representing some political interest.
Others are chosen based on their relationship and support to Tinubu’s presidential ambition. However, it is pertinent for Mr. President to realize that this is not business as usual. His ministers and Special Advisers must be selected and given appropriate portfolios based on the 3Cs of leadership which are Competence, Capability, and Capacity. He has fiducial responsibility to make Nigeria great, having sold his political campaign messaging to Nigerians on the premise of “Renewed Hope”.
The oath of office he took on May 29, 2023 is to Nigerians and not to his party members, his families and friends. Tinubu needs to get the job of fixing Nigeria done within time. And to get the job done, he must move away from the primordial factors that have made all past efforts fail in moving Nigeria forward.
Ministers are called to serve, not to come and become lords unto themselves. They are to come and drive the vision of Mr. President, articulate and implement the party manifesto. They are appointed into the cabinet to come and serve the people and provide governance to the citizens.
However, in the past administrations, we saw a lot of garrulous asperity, indiscipline, low respect to their principal and lack of commitment to the Nigerian project. This was the attitude of some of the Ministers under President Jonathan and President Buhari, who themselves did not show any regard to the plight of Nigerians. The body language of the Commanders-in-Chief determines the attitude and altitude of his ministers in serving the nation.
Mr. President and his Chief of Staff must come up with a mechanism for supervising his ministers, evaluating their performances, and ensuring there are consequences for their actions and inactions. Ruling Nigeria has gone beyond partisan politics; and Tinubu is now the president of Nigeria not of APC members. He should show zero tolerance for ineptitude, corruption, political rascality and disloyalty at various arms of government.
Ex. President Muhammadu Buhari shocked the world when he disclosed on national television on March 13, 2018 that he did not know his Inspector General of Police defied his order. Two months after he directed the then Inspector General of Police Ibrahim Idris (IGP) to relocate to Benue State and stop killings by herdsmen, Buhari discovered when he arrived Makurdi that his order was not carried out. Unfortunately, Buhari just laughed it off. Though he summoned the IG to his office a day after, and nothing happened. That kind of body language portrayed a weak leader.
Tinubu must endeavor to show a different attitude to governance. He must take a clear cut direction from what we have seen; a serious and determined approach to governance. Also, his appointees should be made to cultivate civility in their relationship with the masses.
The political brigandage, grandstanding approach and ‘me against them’ communication style of past ministers and spokespersons of the president and minister of information as witnessed under the immediate past president, should not be tolerated under this government.
The heads of ministries, departments and agencies must be deliberate and purposeful in their actions geared toward delivering best solutions to Nigerian problems. To this end, they must be held accountable for their actions.
Every member of the cabinet must align with the vision of the president and manifesto of the ruling party. Policies should be peoples-centric, because governance is all about making life comfortable for the electorate. The vote of the people is a mandate for every elected leader and their appointees to manage the resources of the nation on behalf of the people.
This is our common patrimony that must be accountably managed. Therefore President Tinubu should know he is responsible to the over 200 million Nigerians that are looking up to him to take them out of Egypt into the Canaan land. God bless Nigeria.
Evertop Realties Limited, a prominent real estate development company, is delighted to unveil their latest masterpiece – “Brooklyn Royal Court” estate. This prestigious development is nestled in the serene and rapidly growing community of Arepo, setting a new standard for modern living in the region.
Brooklyn Royal Court represents the epitome of contemporary living, harmoniously blending sophistication with tranquility. This luxurious estate offers an array of world-class amenities and meticulously crafted architectural designs. Homebuyers will benefit from features such as a well-planned road network, 24-hour security, green areas, reliable electricity, a state-of-the-art recreational center, an efficient drainage system, and much more.
The grand Pre-launch event, held at the estate’s premises, was a spectacle attended by esteemed guests and high-profile personalities. The event’s highlight was the presence of the renowned brand ambassador, Olayinka Solomon, widely known as Ogo Mushin. As a symbol of success and inspiration, Olayinka’s unwavering commitment to excellence perfectly aligns with the vision of Brooklyn Royal Court.
Mr. Oluwaseun Joseph, Managing Director of Evertop Realties Limited, expressed his enthusiasm for the project, stating, “Brooklyn Royal Court epitomizes our dedication to providing top-tier living experiences. Investing here means investing in your future, knowing you will receive exceptional value for your money.”
He also emphasized that the estate offers a two-in-one package, providing a secure and comfortable living environment.
Olayinka Solomon, with her charismatic presence, shared her thoughts on the collaboration, saying, “Being part of Brooklyn Royal Court is an absolute honor. It represents the pinnacle of luxurious living, and I am thrilled to be associated with such a prestigious development. This estate embodies true royalty and success, and I look forward to inviting more people to experience this lifestyle.”
Bayo Babatunde, the Deputy Managing Director of Evertop Realties Limited, praised the company’s reputable nature, reliability, strong integrity, and commitment to keeping promises. He warmly invited everyone to be a part of this lucrative investment opportunity.
Evertop Realties Limited extends an invitation to prospective homeowners and investors to secure their spot in this exclusive haven of elegance and luxury. As a special offer, they are providing a 25% discount to all subscribers within the specified period. Brooklyn Royal Court not only offers an address but also promises a lifestyle fit for royalty.
President Bola Tinubu proposed numerous palliative programs during his nationwide address on Monday to mitigate the effects of his administration’s elimination of petrol subsidies.
The initiatives come in the aftermath of rising hardship as a result of Tinubu’s inauguration-day pronouncement that “fuel subsidies are no longer available.”
Prices of Premium Motor Spirit (PMS), or fuel, have tripled from less than N200 per litre in the two months since he assumed office on May 29, prompting the Nigeria Labour Congress (NLC) to call for a protest.
In an apparent attempt to ease the suffering of millions of Nigerians, the President announced in a national broadcast that relief has arrived for farmers, small business owners, and manufacturers, among others.
Here are 6 key points from President Tinubu’s speech
1. FG has saved over N1 trillion from subsidy removal
According to the President, the Federal Government (FG) has saved “over a trillion Naira that would have been squandered on the unproductive fuel subsidy that only benefited smugglers and fraudsters” since the elimination.
Tinubu stated that the funds will now be used more directly and advantageously “for you and your families.” The education sector is one of the savings targets.
“We shall fulfill our promise to make education more affordable to all and provide loans to higher education students who may need them. No Nigerian student will have to abandon his or her education because of lack of money,” he said.
“Our commitment is to promote the greatest good for the greatest number of our people. On this principle, we shall never falter. We are also monitoring the effects of the exchange rate and inflation on gasoline prices. If and when necessary, we will intervene.”
2. MSMEs
The President emphasized the administration’s acknowledgment of micro, small, and medium-sized businesses, as well as the informal sector, as growth drivers.
Tinubu then announced a N125 billion investment to revitalize “this very important sector.”
“Out of the sum, we will spend N50 billion on Conditional Grant to 1 million nano businesses between now and March 2024. Our target is to give N50,000 each to 1,300 nano business owners in each of the 774 local governments across the country,” he said.
“Ultimately, this programme will further drive financial inclusion by onboarding beneficiaries into the formal banking system. In like manner, we will fund 100,000 MSMEs and start-ups with N75 billion.
“Under this scheme, each enterprise promoter will be able to get between N500,000 to N1 million at 9% interest per annum and a repayment period of 36 months.”
3. N75 billion palliative for the manufacturing sector
The manufacturing sector would receive N75 billion in relief, with 75 enterprises benefiting over a nine-month period from the third quarter of 2023 to the first quarter of next year.
“To strengthen the manufacturing sector, increase its capacity to expand and create good-paying jobs, we are going to spend N75 billion between July 2023 and March 2024.
“Our objective is to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity.
“Each of the 75 manufacturing enterprises will be able to access N1 Billion credit at 9% per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.”
4. FG to boost agriculture
Tinubu said that N200 billion would be invested as part of its intentions to assist the cultivation of 500,000 hectares of farmland, and all-year-round farming practice will continue.
He said, “To be specific, N200 billion out of the N500 billion approved by the National Assembly will be disbursed as follows:
“-Our administration will invest N50 billion each to cultivate 150,000 hectares of rice and maize.
“-N50 billion each will also be earmarked to cultivate 100,000 hectares of wheat and cassava.”
5. Affordable transportation
According to the President, FG would deploy buses across states and local governments for public transit at a significantly lower cost.
He said “Part of our programme is to roll out buses across the states and local governments for mass transit at a much more affordable rate. We have made provision to invest N100 billion between now and March 2024 to acquire 3000 units of 20-seater CNG-fuelled buses.
“These buses will be shared to major transportation companies in the states, using the intensity of travel per capital. Participating transport companies will be able to access credit under this facility at 9% per annum with 60 months repayment period.”
6. Salary review
During his address to Nigerians, President Tinubu talked about salary review, the minimum wage is currently N30,000 which is considered really low due to the economic crisis.
He said, “In the same vein, we are also working in collaboration with the Labour unions to introduce a new national minimum wage for workers. I want to tell our workers this: your salary review is coming.
“Once we agree on the new minimum wage and general upward review, we will make budget provision for it for immediate implementation.”
The president then saluted private firms saying, “I want to use this opportunity to salute many private employers in the Organised Private Sector who have already implemented general salary review for employees.”
Innovative technology brand TECNO today launched a groundbreaking upgrade to its popular SPARK 10 Series – the SPARK 10 Pro Magic Magenta Edition. The special edition illuminates the youth’s brilliance with an industry-first “Luminous Eco-Leather Technology”, allowing magical color-changing on a sustainable eco-leather. With eye-catching magenta, it encourages every user to unleash their true, brilliant self.
The SPARK 10C and SPARK 10 are also upgraded with new color versions. The SPARK 10 is now available in a magenta color, while the SPARK 10C boasts a fresh new orange hue, giving consumers more ways to show their fearless individuality.
Illuminating the Color-Changing Trend with World’s First Luminous Eco-Leather Technology
The SPARK 10 Pro Magic Magenta Edition is the industry’s first smartphone to realize luminous color-changing on eco-leather, illuminating an amazing and surprising new trend that outshines the darkest moments. With this Luminous eco-leather technology, the device absorbs and converts light through a color transformation from vivid magenta to a magical fluorescent glow.
It celebrates TECNO’s latest achievement in color-changing technologies – following others such as CAMON 19 Pro Mondrian Edition’s Sunlight Drawing and the innovative Chameleon Coloring technologies – and highlights the brand’s “Stop at Nothing” spirit of innovation and its commitment to empowering young-at-heart users around the world.
The realization of this technically complex design is the result of TECNO’s incredible craftsmanship, following over 60 rounds of development and more than 1,200 sample revisions. The exceptional color result is accomplished through an advanced three-layer composition——the base layer is screen printed 4 times with red and white ink to create a bold base; the core layer is luminous ink screen printed 3 times and tech coating 4 times to achieve a luminous base, and a decorative layer adds transparent silicone leather to accentuate the effect.
Spellbinding Magic Magenta Design Celebrates the Fearless Spirit of Youth
Injected with the energy and passion of Gen Z, the SPARK 10 Pro Magic Magenta Edition’s vibrant magenta hue captures the eye and the imagination. The spectacular vibrancy of the shade empowers users to unleash their creativity and individuality, while the magenta and white patchwork reflect the vitality of today’s youth, who embrace change and refuse to be confined to a single identity. With this trendy color, the device radiates a youthful vibe that encourages the pursuit of joy and freedom.
While the eco-leather accentuates the device’s colorful impact, its premium texture also adds to the fantastic experience. This eco-friendly material is smooth to the touch yet durable, with resistance to sweat, scratches, and corrosion. It also provides a wipe-clean surface to guard against oil, paint, and other dirt stains, while being supremely comfortable in the hand.
The launch of the SPARK 10 Pro Magic Magenta Edition follows the successful launch of the SPARK 10 Pro, which achieved outstanding commercial success with the device quickly selling out in many countries. With the exception of the luminous design, the devices share the same key features, including:
A 32MP Ultra-Clear Front Camera, a 50MP High-Resolution Photography System, dual soft lights with adjustable brightness, and smart AI modes for effortless selfies and crystal-clear photos and videos.
Smooth gaming, video viewing and daily use empowered by MediaTek’s 8-core Helio G88 gaming processor, while 256GB ROM and 16GB RAM (8GB extended RAM) make it a memory specialist in its price range.
An exquisite 6.8-inch FHD display with a high refresh rate of 90Hz, ultra-high resolution, and DCI-P3 color gamut for a rich and colorful viewing experience. It also provides a strong power supply with a 5000mAh super battery and 18W fast charge.
The market capitalisation of the Nigerian Exchange Limited grew by N1.8tn in July following earnings and dividends declared by listed companies.
The positive trend of the market was further driven by insider dealings among companies, as directors and related parties consolidated their positions, thus signalling their confidence in the value proposition of the companies.
Despite the profit-taking, selloffs and foreign exchange pressures were witnessed within the period, as the benchmark NGX All-Share index which opened the trading month at 60,968.27 points, closed at 64,337.52 points, representing a 5.53 per cent growth in the month under review.
Similarly, the market capitalisation, which is the value of listed equities, rose by N1.813tn from N33.197tn to N35.011tn, representing a gain for investors.
In a statement on Monday, the NGX said, “There were also the better-than-expected corporate earnings, higher dividend payouts and relatively improved liquidity as fixed incomes yields were not stable in the face of soaring inflation which supported buying interests in the market and flow of funds into the equity space.”
Last Friday, investors exchanged 2.854 billion shares worth N37.645 billion in 41,547 transactions on the floor of the market. The month’s high traded volume and mixed attitude mirrored the purchasing interests of majority owners as well as the activity of institutional investors as they tried to hedge against inflation amid a mixed outlook for fixed income rates and yields.
Given the outcome of the Monetary Policy Committee meeting in the month under review, the prevailing mixed economic data, and more corporate earnings now looking up, capital market analysts believe that positive earnings surprises and possible interim dividend declarations from companies would spur increased bargain-hunting activity on the bourse.
They also stated that profit-taking on equities that have experienced substantial appreciation might be possible..
Analysts at Cordros Research in their notes said, “In the medium term, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed-income market.”
The Nigerian naira rose on Monday, despite an occasional halt in the market’s foreign currency demand pressures, the amount of transactions completed at the Investors and Exporters FX window improved, indicating that seasonal demand is reducing.
According to FDMQ over-the-counter (OTC) FX statistics, the local currency gained 2.43% versus the dominating currency – the US Dollar – in the Investors and Exporter Window, ending at N756.94. On Friday, dealers reported that the currency rate had concluded at N775.76 per US dollar. In weekly comparison, the local currency gained 26 basis points before closing at N775.76 in the official window.
Across the FX market last week, Naira traded within a similar band to the previous week. At the Investors & Exporters Window, activity level improved by 8.3% to $421.6 million last week, leading to a 0.3% appreciation of the price currency by 0.3%.
Trades were consummated at the official market for investors and exporters within the N650.00 – N869.00 per US dollar. In its market update, Afrinvest noted that the spread between both FX rates continued to thin though the spread of the weekly average rose by 60.6% to ₦89.02.
In the parallel market, the Naira lost 0.35% against the US dollar, reaching N870 as foreign reserves continue to decline amidst low accretion from crude oil exports. Data from the CBN showed that Nigeria’s FX reserve declined by US$19.20 million to US$33.95 billion.
Meanwhile, Brent crude rose 0.67% to $84.98 per barrel, while WTI crude gained 0.99% to $81.38 per barrel. Oil futures were higher on Monday as supply constraints outweighed expectations for lower energy demand
Elsewhere, the central parity rate of the Chinese currency renminbi, or the yuan, strengthened 33 pips to 7.1305 against the dollar on Monday, according to the China Foreign Exchange Trade System. In China’s spot foreign exchange market, the yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.
The central parity rate of the yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.
Analysts at Cordros Capital Limited said they expect the currency pressures to remain intact in the near term, given seasonal-induced demand and still frail FX supply despite the CBN’s abolishment of its multiple FX windows.
The country’s foreign reserves plummeted by $167.2 million in July as the naira fell further against the dollar. According to figures acquired from the Central Bank of Nigeria on the movement of external reserves, the reserves that ended June 30, 2023 at $34.12 billion declined to $33.95 billion as of July 28, 2023.
On Monday, the naira plummeted from 820/$ to 868/$ in the previous two weeks on the parallel market. The naira began trading at 784.91/$ on the FMDQ and reached a high of 830/$ before finishing at 756/$. Mr Abudul Ahmed, a Bureau de Change operator in Lagos, stated, “We bought and sold the dollar today (Monday) at 860/$ and 868/$.”
the President, Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, said, “Optimism is giving way to pessimism with continuing lack of confidence in our local currency. This has led to increase in Fx holding position, hoarding and speculation.
“The core objectives of the harmonization of the multiple exchange rate is to discourage arbitrage and rent seeking, however, the recent trajectory does not seem to achieve that.”
He added that, “The increasing demand of oil marketers, investors backlog, school fees and travellers have continue to mount demand pressure on the limited dollar availability in the market.”
To immediately address the looming situation of the local currency, he said, “We need to ensure additional foreign finance either bilaterally or multilaterally to enhance liquidity.”
At the last Monetary Policy Committee meeting in Abuja, The acting Governor, Central Bank of Nigeria, Folashodun Shonubi, said the bank would address the demand pressure on the country’s exchange rate, as the naira continued to slide against the dollar.
The accretion to external reserves remained weak while foreign exchange demand pressures persisted, he said.
Shonubi said, “The market needs to find its level. There is pent-up demand which the market cannot cater to. Once we clear this demand, the volatility will normalise. We have started intervening, and we would continue to intervene until the market gets to our level.”
The Nigerian Exchange (NGX) has lost more over N391 billion since the start of the week. Unimpressive profits from a large number of listed firms, caused by foreign exchange losses, dampen purchasing enthusiasm in the equity market.
Following yield repricing in the fixed income market, the trading pattern seen last week heralded the return of bears into the equity area. At a midweek auction, the apex bank auctioned 1-year treasury notes for 12.15%.
Because to selloffs in important indices, the Nigerian Exchange All-Share index, or market index, fell by 1.10%, lowering the year-to-date return. The year-to-date return landed at 25.53%, still much ahead of the annual inflation rate of 22.79% published in June 2023, according to data from the local exchange.
However, stockbrokers reported an increase in market activity, with total volume and total value traded increasing by +46.47% and +21.12%, respectively. According to Atlass Portfolios Limited’s stock market report, 673.42 million units worth $6,474.47 million were traded in 9,788 transactions.
In terms of volume, ABBEYBDS was the most traded stock, accounting for 16.68% of total transaction activity. The mortgage bank was followed on the volume chart by FIDELITYBK (8.70%), UBN (7.59%), FCMB (7.33%), and UNIVINSURE (7.06%).
Meanwhile, MTNN was the most traded stock in terms of value, accounting for 15.62% of all deals on the market. With price increases of 10.00 percent or more, BETAGLAS, LINKASSURE, MANSARD, and SUNUASSUR topped the advancers’ leaderboard. These insurance stocks were trailed by BERGER (9.95%), SKYAVN (+9.87%), CUSTODIAN (+9.79%), TIP (+9.59%), and ten others, according to stock market updates from Broadstreet.
Forty-nine listed companies’ stocks depreciated, where CAVERTON, LIVESTOCK, DANGSUGAR, ETI, NPFMCRFBK, and SOVRENINS were the top loser, with a price depreciation of -10.00% each. GUINNESS (-9.98%), ETERNA (-9.90%), NAHCO (-9.80%), NASCON (- 9.72%), and CADBURY (-9.64%) also dipped in price.
At the end of trading session on Monday, the market breadth closed negative, recording 18 gainers and 49 losers. The bear grips held down market sectorial performance, closing negative.
Nigerian Exchange record showed that three of the five major market sectors were down, led by the Banking sector (-2.55%), followed by the Consumer goods sector (-1.42%), and the Industrial sector (-0.03%).
In contrast, the Insurance and Oil & Gas sectors were up by +1.58% and +0.40% respectively. Overall, equities market capitalisation fell by ₦391.20 billion, representing a decrease of -1.10%, to close at ₦35,011.46 trillion from ₦35,402.66 trillion last Friday.
The Federal Government has approved an intervention of N200 billion to provide steady food and agricultural inputs. President Bola Tinubu made the news on Monday in Abuja during a statewide broadcast titled “After Darkness Comes the Glorious Dawn.”
He stated that the intervention would guarantee that food costs remained affordable, and that the government had the support of farmers’ groups and agricultural value chain players.
‘’In the short and immediate terms, we will ensure staple foods are available and affordable.
“To this end, I have ordered the release of 200,000 metric tonnes of grains from strategic reserves to farmers across the 36 states and FCT to moderate prices.
‘’We are also providing 225,000 metric tonnes of fertilizer, seedlings, and other inputs to farmers, who are committed to our food security agenda.
“Our plan to support the cultivation of 500,000 hectares of farmland and all-year-round farming practice remains on course.
‘’To be specific, N200 billion out of the N500 billion approved by the National Assembly will be disbursed (for this).’’
Tinubu also stated that his administration will invest N50 billion to plant 150,000 hectares of rice and maize, as well as N50 billion to produce 100,000 hectares of wheat and cassava.The president went on to say that an extensive agricultural program will be developed, aimed at small-holder farmers and leveraging large-scale private sector actors in agriculture with a track record of success.
“In this regard, development finance institutions, commercial banks, and microfinance banks will be tapped to develop a viable and appropriate transaction structure for all stakeholders.”
Tinubu stated that the Federal Government was also working with the other two levels of government to ensure that the administration’s numerous palliatives reached the grassroots.
‘’It is in the light of this that I approved the Infrastructure Support Fund for the states.
‘’This new infrastructure fund will enable states to intervene and invest in critical areas and bring relief to many of the pain points as well as revamp our decaying healthcare and educational infrastructure.
‘’The fund will also bring improvements to rural access roads to ease evacuation of farm produce to markets.
“With the fund, our states will become more competitive and on a stronger financial footing to deliver economic prosperity to Nigerians.’’
The president also announced the provision of buses to states and local government areas for mass transit at affordable rates.
‘’We have made provision to invest N100 billion between July 2023 and March to acquire 3,000 units of 20-seater CNG-fuelled buses.
‘’These buses will be shared amongst major transportation companies in the states, using the intensity of travel per capita.
“Participating transport companies will be able to access credit under this facility at nine percent per annum with a 60-month repayment period,’’ the president stated.
On minimum wage for workers, Tinubu said that budget provisions would be made immediately after an agreement was reached with labour unions.
‘’In the same vein, we are also working in collaboration with the labour unions to introduce a new national minimum wage for workers. ‘’I want to tell our workers this: your salary review is coming.
“Once we agree on the new minimum wage and general upward review, we will make budget provision for it for immediate implementation.’’
The president used the broadcast to urge Nigerians to continue to bear with the decision on fuel subsidy removal and the preferential exchange rate system. He promised that the decisions were based on the long-term benefit to the national economy and the socio-political well-being of citizens.
‘’For several years, I have consistently maintained the position that fuel subsidy had to go. This once beneficial measure had outlived its utility.
‘’The subsidy cost us trillions of naira yearly. Such a vast sum of money would have been better spent on public transportation, healthcare, schools, housing, and even national security.
“Instead, it was being funnelled into the deep pockets and lavish bank accounts of a select group of individuals.
‘’Fellow Nigerians, this period may be hard on us and there is no doubt about it that it is tough on us.
“But I urge you all to look beyond the present temporary pains and aim at the larger picture.
“All of our good and helpful plans are in the works. More importantly, I know that they will work.
‘’Sadly, there was an unavoidable lag between subsidy removal and these plans coming fully online.
“However, we are swiftly closing the time gap. I plead with you to please have faith in our ability to deliver and in our concern for your well-being.’’
Tinubu called for the support of all Nigerians of goodwill in the fight against those who had benefited from the flawed economic policies of the past and who were fighting back.
‘’As we move to fight the flaws in the economy, the people who grow rich from them predictably will fight back through every means necessary.
‘’Our economy is going through a tough patch and you are being hurt by it. The cost of fuel has gone up.
“Food and other prices have followed it. Households and businesses are struggling.
‘’Things seem anxious and uncertain. I understand the hardships you face.
“I wish there were other ways. But there is not. If there were, I would have taken that route as I came here to help not hurt the people and nation that I love.
‘’What I can offer in the immediate future is to reduce the burden our current economic situation has imposed on all of us, most especially on businesses, the working class, and the most vulnerable among us,’’ he said.
The president commended state governments that had put in place one palliative measure or the other to ensure that their citizens overcame the pains of the subsidy removal.
Following its ongoing monetary policy tightening, the Central Bank of Nigeria (CBN) repriced Treasury notes at higher spot rates during its midweek primary market auction. The CBN offered instruments worth N264.33 billion for subscription during the auction. The whole amount was divided as follows: N1.74 billion for the 91-day bills, N1.26 billion for the 182-day bills, and N261.33 billion for the 365-day bills.
The auction received N398.17 billion in total subscriptions. Local investors’ entire subscription for Nigerian Treasury notes was skewed toward the longer-dated bill worth N383.88 billion, accounting for 96.4% of the total subscription.
Noticing altering market dynamics, the apex bank increased 364-day bill spot rates to 12.15% last week, a 6.21% increase after it announced a 25 basis point interest rate hike to 18.75%. As a result, investors in the secondary market reacted with selloffs, driving the average yield higher after a protracted wait for new yield repricing as the naira asset remains vulnerable to inflationary pressures.
At the end of the week, the average yield on Nigerian Treasury notes had risen to 7.35%, backed by another monetary policy tightening. Cordros Capital Limited’s fixed income dealers attribute this week’s result to dwindling interest in bills as market participants took gains on some holdings.
Remember that the CBN’s monetary policy committee raised the benchmark interest rate to 18.75% in an effort to combat Nigeria’s increasing inflation rate. Considered ineffectual for a cost-push inflation upswing, the top bank has raised the monetary policy rate by 725 basis points cumulatively since the first quarter of 2022, when it was 11.50%.
The market experienced selloffs of Nigerian Treasury notes, headed by deposit money institutions attempting to boost their liquidity holdings, in order to optimize profits on their various portfolios. In the absence of major inflows from matured bills, the financial sector experienced a return of liquidity concerns last week, driving short-term benchmark interest rates higher. However, substantial inflows reversed the liquidity strain.
Data from FMDQ showed that the overnight rate contracted by 19.6% to 1.4% week on week, as the system liquidity was supported by inflows from Federal Account Allocation Committee (FAAC) disbursement worth N561.49 billion and FGN bond coupon payments totaled N126.00 billion. As of Friday, the average system liquidity closed higher at a net long position of N363.38 billion as against a net long position of N103.19 billion in the prior week.
.” We expect the liquidity in the system to remain buoyant next week, barring any significant outflows. Hence, we believe the overnight rate will remain depressed”, Cordros Capital told investors in an update. MarketForces Africa reported that the CBN refinanced N264.33 billion worth of treasury bills, fully offsetting the matured instruments. Demand came higher amidst a dearth of investment options, though rising inflation has drastically reduced real return on investment.
The CBN’s primary market auction results showed that stop rates for 91-day bills were priced at 6%, representing 314 basis points increase from the previous auction sales. Also, CBN sold 182-day bills at 8%, translating to a 450 basis points surge while 364-day bills rose to 12.15%, 621 basis points above 5.94% offered to investors in the previous week
“This rate adjustment aligns with the apex bank’s aim to curtail inflation by maintaining high-interest rates, as reflected in the recent 25 basis point hike in the Monetary Policy Rate (MPR)”, Cowry Asset Management told investors in its market update.
Consequently, the secondary market saw bearish activity as traders followed the direction of the primary market rates. Meanwhile, activities in the OMO space were muted amid zero maturing or refinanced bills. However, inflows from the Federation Account Allocation Committee (FAAC) contributed to a decrease in Nigeria Interbank Offered Rates for all tenor buckets, according to Cowry Asset Management.
Lagos State Governor Babajide Sanwo-Olu has reduced the transportation fares of state-owned buses and ferries by 50% and implemented other measures to mitigate the impact of subsidy termination.
He stated this during a press conference following a state security council meeting on Monday afternoon, adding that the government has also put in place measures for commercial buses, popularly known as “Danfo,” to lower their fares by 25%.
The fare reduction will benefit commuters who utilize BRT buses and other public transportation modes run by the Lagos Metropolitan Area Transport Authority (LAMATA) and Lagos Ferry Services (LAGFERRY).
The Governor stated that operators in the informal transportation sector (commercial drivers) would be taking similar steps to reduce transportation costs, noting that commercial operators in Lagos had agreed to reduce their fees by 25%.
Sanwo-Olu stated that the palliative measures would be maintained until the Federal Government’s determination on a number of relief measures for citizens to mitigate the consequences of the gasoline subsidy reduction.
The governor said: “In the course of the State Security Council meeting today, we reviewed the current economic situation that we have in the country, especially as it affects our residents in Lagos.
“We have had extensive consultations with all the stakeholders in our transport sector, both formal and informal. We have come to the conclusion which both the State Government and the stakeholders will be supporting.
“Immediately from Wednesday, all public transport services under the control of LAMATA will be plying all routes across Lagos at 50 per cent fare rebate of the current rate. Route configuration and new fare validation are currently being done ahead of the kick-off of the palliative measures. Commercial operators in informal transport services will be rolling out their fare reduction plan, which is about 25 per cent. They are meeting with themselves on the modality as we speak.
“We have also concluded the arrangement to increase the fleet of our staff buses conveying workers to their offices and homes. We have procured more buses to achieve this objective and the vehicle are being supplied already. We are waiting to get the required number before deploying the vehicles to various arms in the public service. Extra buses will be deployed back to public transport system to complement the services.”
Palliatives
Sanwo-Olu stated that preparations for distributing food items to vulnerable individuals in the state have been finalized with various stakeholders.
He stated that the intervention will be carried out through effective channels of stakeholders such as civil society organizations, Local Government Authorities, Community Development Associations (CDAs), Community Development Councils (CDCs), churches, mosques, and traditional organizations.
The measure, according to Sanwo-Olu, is one of the Government’s immediate priorities to mitigate the damage and stabilize the conditions of common folks.
“We will be sending regular food items people consume daily, such as rice, beans, garri and all food products that can help cushion the effects of the current hardship on our people.
“All the purchases of the food items will be done locally to empower local food suppliers and keep the benefits of the intervention within the local food market value chain,” the Governor said.
Sanwo-Olu advised the corporate sector to adopt similar steps to assist their employees in dealing with the current crisis.
President Bola Ahmed Tinubu on July 31, 2023 addressed Nigerians at 7 pm WAT amid hike in petrol price, inflation, economic crisis and hardship on Nigerians.
During his nationwide address President Tinubu spoke about the current economic challenges in the country and his plans to address them.
President Tinuu’s address; full speech
My fellow citizens,
I want to talk to you about our economy. It is important that you understand the reasons for the policy measures I have taken to combat the serious economic challenges this nation has long faced.
I am not going to talk in difficult terms by dwelling on economic jargon and concepts. I will speak in plain, clear language so that you know where I stand. More importantly, so that you see and hopefully will share my vision regarding the journey to a better, more productive economy for our beloved country.
For several years, I have consistently maintained the position that the fuel subsidy had to go. This once beneficial measure had outlived its usefulness. The subsidy cost us trillions of Naira yearly. Such a vast sum of money would have been better spent on public transportation, healthcare, schools, housing and even national security. Instead, it was being funnelled into the deep pockets and lavish bank accounts of a select group of individuals.
This group had amassed so much wealth and power that they became a serious threat to the fairness of our economy and the integrity of our democratic governance. To be blunt, Nigeria could never become the society it was intended to be as long as such small, powerful yet unelected groups hold enormous influence over our political economy and the institutions that govern it.
The whims of the few should never hold dominant sway over the hopes and aspirations of the many. If we are to be a democracy, the people and not the power of money must be sovereign.
he preceding administration saw this looming danger as well. Indeed, it made no provision in the 2023 Appropriations for subsidy after June this year. Removal of this once helpful device that had transformed into a millstone around the country’s neck had become inevitable.
Also, the multiple exchange rate system that had been established became nothing but a highway of currency speculation. It diverted money that should have been used to create jobs, build factories and businesses for millions of people. Our national wealth was doled on favourable terms to a handful of people who have been made filthy rich simply by moving money from one hand to another. This too was extremely unfair.
It also compounded the threat that the illicit and mass accumulation of money posed to the future of our democratic system and its economy.
I had promised to reform the economy for the long-term good by fighting the major imbalances that had plagued our economy. Ending the subsidy and the preferential exchange rate system were key to this fight. This fight is to define the fate and future of our nation. Much is in the balance.
Thus, the defects in our economy immensely profited a tiny elite, the elite of the elite you might call them. As we moved to fight the flaws in the economy, the people who grow rich from them, predictably, will fight back through every means necessary.
Our economy is going through a tough patch and you are being hurt by it. The cost of fuel has gone up. Food and other prices have followed it. Households and businesses struggle. Things seem anxious and uncertain. I understand the hardship you face. I wish there were other ways. But there is not. If there were, I would have taken that route as I came here to help not hurt the people and nation that I love.
What I can offer in the immediate is to reduce the burden our current economic situation has imposed on all of us, most especially on businesses, the working class and the most vulnerable among us.
Already, the Federal Government is working closely with states and local governments to implement interventions that will cushion the pains of our people across socio-economic brackets.
Earlier this month, I signed four (4) Executive Orders in keeping with my electoral promise to address unfriendly fiscal policies and multiple taxes that are stifling the business environment. These Executive Orders on suspension and deferred commencement of some taxes will provide the necessary buffers and headroom to businesses in the manufacturing sector to continue to thrive and expand.
To strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs, we are going to spend N75 billion between July 2023 and March 2024. Our objective is to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity. Each of the 75 manufacturing enterprises will be able to access N1 Billion credit at 9% per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.
Our administration recognises the importance of micro, small and medium-sized enterprises and the informal sector as drivers of growth. We are going to energise this very important sector with N125 billion.
Out of the sum, we will spend N50 billion on a Conditional Grant to 1 million nano businesses between now and March 2024. Our target is to give N50,000 each to 1,300 nano business owners in each of the 774 local governments across the country.
Ultimately, this programme will further drive financial inclusion by onboarding beneficiaries into the formal banking system. In like manner, we will fund 100,000 MSMEs and start-ups with N75 billion. Under this scheme, each enterprise promoter will be able to get between N500,000 to N1 million at 9% interest per annum and a repayment period of 36 months.
To further ensure that prices of food items remain affordable, we have had a multi-stakeholder engagement with various farmers’ associations and operators within the agricultural value chain.
In the short and immediate terms, we will ensure staple foods are available and affordable. To this end, I have ordered the release of 200,000 Metric Tonnes of grains from strategic reserves to households across the 36 states and FCT to moderate prices. We are also providing 225,000 metric tonnes of fertilizer, seedlings and other inputs to farmers who are committed to our food security agenda.
Our plan to support the cultivation of 500,000 hectares of farmland and all-year-round farming practice remains on course. To be specific, N200 billion out of the N500 billion approved by the National Assembly will be disbursed as follows:
-Our administration will invest N50 billion each to cultivate 150,000 hectares of rice and maize.
-N50 billion each will also be earmarked to cultivate 100,000 hectares of wheat and cassava.
This expansive agricultural programme will be implemented targeting small-holder farmers and leveraging large-scale private sector players in the agric business with strong performance record.
In this regard, the expertise of Development Finance Institutions, commercial banks and microfinance banks will be tapped into to develop a viable and an appropriate transaction structure for all stakeholders.
Fellow Nigerians, I made a solemn pledge to work for you. How to improve your welfare and living condition is of paramount importance to me and it’s the only thing that keeps me up day and night.
It is in the light of this that I approved the Infrastructure Support Fund for the States. This new Infrastructure Fund will enable States to intervene and invest in critical areas and bring relief to many of the pain points as well as revamp our decaying healthcare and educational Infrastructure.
The fund will also bring improvements to rural access roads to ease evacuation of farm produce to markets. With the fund, our states will become more competitive and on a stronger financial footing to deliver economic prosperity to Nigerians.
Part of our programme is to roll out buses across the states and local governments for mass transit at a much more affordable rate. We have made provision to invest N100 billion between now and March 2024 to acquire 3000 units of 20-seater CNG-fuelled buses.
These buses will be shared to major transportation companies in the states, using the intensity of travel per capital. Participating transport companies will be able to access credit under this facility at 9% per annum with 60 months repayment period.
In the same vein, we are also working in collaboration with the Labour unions to introduce a new national minimum wage for workers. I want to tell our workers this: your salary review is coming.
Once we agree on the new minimum wage and general upward review, we will make budget provision for it for immediate implementation.
I want to use this opportunity to salute many private employers in the Organised Private Sector who have already implemented general salary review for employees.
Fellow Nigerians, this period may be hard on us and there is no doubt about it that it is tough on us. But I urge you all to look beyond the present temporary pains and aim at the larger picture. All of our good and helpful plans are in the works. More importantly, I know that they will work.
Sadly, there was an unavoidable lag between subsidy removal and these plans coming fully online. However, we are swiftly closing the time gap. I plead with you to please have faith in our ability to deliver and in our concern for your well-being.
We will get out of this turbulence. And, due to the measures we have taken, Nigeria will be better equipped and able to take advantage of the future that awaits her.
In a little over two months, we have saved over a trillion Naira that would have been squandered on the unproductive fuel subsidy which only benefitted smugglers and fraudsters. That money will now be used more directly and more beneficially for you and your families.
For example, we shall fulfill our promise to make education more affordable to all and provide loans to higher education students who may need them. No Nigerian student will have to abandon his or her education because of lack of money.
Our commitment is to promote the greatest good for the greatest number of our people. On this principle, we shall never falter.
We are also monitoring the effects of the exchange rate and inflation on gasoline prices. If and when necessary, we will intervene.
I assure you my fellow country men and women that we are exiting the darkness to enter a new and glorious dawn.
Now, I must get back to work in order to make this vision come true.
Thank you all for listening and may God bless the Federal Republic of Nigeria.
