Band A electricity customers, known for paying the highest tariffs in Nigeria, express growing frustration over reduced power supply following the recent national grid failures. Once guaranteed at least 20 hours of electricity daily, many now endure inconsistent supply, averaging 12 to 16 hours.
The grid collapse, which plunged much of the country into darkness, has left Band A subscribers—who pay N206 per kWh—feeling shortchanged. These customers, who represent approximately 15% of Nigeria’s 13 million electricity subscribers, previously enjoyed premium service due to their higher tariffs.
“We now get about 16 hours of power daily, which is far less than what we paid for. It’s frustrating to rely on generators again,” says Mrs. Joyce Iraboh, a Lagos resident.
Another subscriber, Mr. Ope from Ogba, echoes the sentiment: “We are billed as if we still get the promised 20 hours. This is unfair, especially since the supply is nowhere near consistent.”
Even prepaid meter users, who pay based on consumption, argue they are not receiving the uninterrupted supply expected for their unsubsidized tariff rates.
Impact on Daily Life
The shortfall has forced many Band A customers to revert to using expensive alternative energy sources, such as petrol and diesel generators. For individuals like David, a remote worker in Ojodu, this adds a financial burden. “I spend more on fuel now than I did when the grid was stable. It’s unsustainable,” he laments.
Minister of Power Adebayo Adelabu acknowledges the situation and vows to penalize Distribution Companies (DisCos) that fail to meet the 20-hour minimum service standard for Band A feeders.
Experts Highlight Infrastructure Failures
Energy experts attribute the persistent grid collapses to outdated infrastructure and insufficient investment in protective systems. Abiodun Sonekan, an energy analyst, explains, “The grid is vulnerable to issues like power line tripping and vandalism, both of which disrupt operations and delay restoration.”
Kingsley Effiong, a Lagos-based consultant, stresses the need for modern technology like the Supervisory Control and Data Acquisition (SCADA) system to prevent collapses. “Nigeria’s grid is operating with decades-old infrastructure. We need urgent investment in modernization before increasing tariffs,” he says.
Government Struggles to Fund Power Sector Reforms
The Minister of Power estimates that Nigeria requires at least $10 billion in investments to stabilize the electricity sector and achieve 24-hour power supply. However, attracting private investors remains a challenge due to the sector’s volatility.
Social Media Reactions
Frustrated customers have taken to social media to air their grievances. One user, @DelekeLaoye, tweets: “We’ve barely had 15 minutes of power today, and we’re supposed to be a Band A feeder.”
Another user, @Aryhoblueblood, adds: “Your grid stats look good on paper, but we’ve been in darkness for 24 hours. Where is the light we’re paying for?”
A Call for Urgent Action
The persistent issues with Nigeria’s national grid underscore the need for a holistic approach to power sector reform. While Band A customers continue to pay premium rates, their calls for reliable electricity remain unmet. Without immediate action to upgrade infrastructure and enforce accountability among DisCos, the promise of steady electricity supply may remain elusive.
The Nigerian Consumer Credit Corporation (CREDICORP) introduces a groundbreaking initiative, S.C.A.L.E. (Securing Consumer Access for Local Enterprises), designed to provide credit to Nigerian consumers for purchasing locally manufactured products and services. This ambitious project aims to support local industries by linking one million credit-backed consumers with Nigerian manufacturers and vendors.
Announcing the initiative on Monday, CREDICORP reveals that S.C.A.L.E. will stimulate demand for local goods, creating opportunities for businesses while promoting job growth and economic development. The program focuses on fostering access to quality locally made products across key sectors.
Focus Areas
Home Improvement: Facilitates access to locally produced furniture, building materials, and appliances, enabling families to enhance their living conditions.
Mobility: Supports the purchase of vehicles, including electric and compressed natural gas (CNG) cars, motorbikes, and bicycles, to promote cleaner, affordable transportation while boosting the local automotive industry.
Electronics: Provides credit for essential digital devices like smartphones, tablets, and laptops, fostering greater digital inclusion.
Energy Solutions: Eases access to sustainable energy products, such as solar panels and energy-efficient generators, addressing persistent power challenges for homes and businesses.
General Merchandise: Expands access to health products, textiles, apparel, and food items, spurring growth in these essential sectors.
Building Local Demand
CREDICORP highlights the transformative potential of S.C.A.L.E., stating, “This initiative strengthens local industries by connecting credit-backed consumers with reliable Nigerian manufacturers and vendors across crucial sectors. By driving demand, we aim to unlock job creation and long-term economic growth.”
To ensure effective participation, CREDICORP calls on local manufacturers and vendors to register for the program’s first phase, with a deadline of December 15, 2024.
Previous Efforts
This announcement follows CREDICORP’s recent launch of the CALM (Credit Access for Light and Mobility) Fund, aimed at enabling Nigerians to access solar energy systems and CNG vehicle conversions through partner financial institutions.
CREDICORP has also partnered with 151 financial institutions, including fintech firms, microfinance banks, and commercial banks, to enhance consumer credit access. Currently, five institutions—Credit Direct, Wema Bank, Accion Microfinance Bank, LETSHEGO Microfinance Bank, and Abbey Mortgage Bank—are operational under the program.
Strengthening Consumer Credit
To perfect the scheme, CREDICORP recently partnered with the National Identity Management Commission (NIMC) to streamline credit scoring for Nigerians using the National Identification Number (NIN).
Through projects like S.C.A.L.E., CREDICORP continues to drive consumer credit innovation, empowering Nigerians to support local industries and improving access to essential goods and services.
In a move set to reshape Nigeria’s fuel distribution landscape, Dangote Petroleum Refinery has entered into a landmark agreement with the Independent Petroleum Marketers Association of Nigeria (IPMAN).
The deal, expected to commence in the coming weeks, will see Dangote’s refinery supply a staggering 60 million litres of Premium Motor Spirit (PMS) commonly known as petrol every week. This translates to a substantial 240 million litres of petrol monthly, marking a significant step forward for the country’s fuel supply chain.
For IPMAN, the deal is more than just an agreement; it is a major leap toward streamlining fuel distribution across Nigeria. Traditionally, independent marketers have relied heavily on middlemen to import and distribute petrol. This new arrangement allows IPMAN members to source petrol directly from Dangote’s refinery, eliminating previous logistical bottlenecks and ensuring a more efficient and cost-effective fuel supply.
The National Publicity Secretary for IPMAN, Chinedu Ukadike, explained how the deal would enhance the association’s operational capacity. “Before now, most of the imported products in Nigeria were distributed through IPMAN. With this agreement, we can off-take millions of liters directly from Dangote Refinery without any intermediaries,” Ukadike added.
He also emphasized that the supply will be flexible and scalable, depending on demand, with Dangote offering more than 60 million litres weekly as needed.
The new deal comes at a critical time for Nigeria’s fuel sector, which has long been plagued by high dependency on imported petroleum products. Dangote Refinery, pushed as the largest in the country, is expected to significantly reduce this reliance, saving Nigeria billions of dollars spent on fuel imports each year.
Ukadike is optimistic about the positive changes that the agreement will bring, highlighting that the distribution process will begin as soon as the final documentation is completed, with operations expected to begin before the end of November.
A crucial aspect of this deal is the establishment of a Special Purpose Vehicle (SPV) by IPMAN to oversee the product off-taking process. This mechanism will ensure that funds are guaranteed for transactions and that the distribution process is smooth and efficient. It replaces the previous system where individual marketers struggled with purchasing small quantities of fuel, often causing delays and inefficiencies.
This collaboration is also timely given the increasing competition in Nigeria’s fuel market, particularly after the deregulation of the sector. Petrol prices have been steadily declining in recent weeks, fueled by a surge in imports from both the Nigerian National Petroleum Corporation (NNPC) and independent marketers.
With Dangote Refinery now directly supplying petrol to IPMAN, the Nigerian fuel sector is on the verge of a significant transformation, one that promises to stabilize supply and reduce fuel costs for consumers nationwide.
As the final stages of the deal unfold, it’s clear that this partnership represents a new era for Nigeria’s energy sector. By cutting out middlemen and improving supply chains, Dangote Refinery and IPMAN are set to deliver a more reliable and affordable fuel distribution system for the country. For Nigerians, this could mean lower prices and a more sustainable energy future.
In recent months, the Nigerian government has been exploring and implementing new tax reforms aimed at boosting the nation’s revenue generation and improving its economic climate. The proposed tax changes are generating significant discussion among business leaders, particularly in the small and medium enterprises (SME) sector.
While these reforms are seen as a potential source of growth for Nigeria’s economy, they also come with their own set of challenges. This feature takes an in-depth look at the proposed tax reforms, their advantages, disadvantages, and how they compare with similar changes made by other African nations.
The Proposed Tax Reforms
The Nigerian government’s new tax reform package, which includes adjustments to the Value Added Tax (VAT), Corporate Income Tax, and Personal Income Tax, is designed to increase tax compliance and broaden the tax base. The reform aims to address the nation’s perennial revenue shortfall, which has been exacerbated by over-reliance on oil revenues.
One key aspect of the reform is the introduction of a progressive tax rate for corporate entities based on their turnover, rather than a flat rate. This aims to ease the burden on smaller businesses while increasing the tax burden on larger firms that have the capacity to pay more.
Another notable change is the planned increment of VAT from 7.5% to 10%, which is expected to generate more revenue, particularly from the informal sector, which traditionally remains outside the tax net.
The government has also promised to invest in tax infrastructure and implement measures to reduce tax evasion, which has been a major issue in the country. However, the details of how this will be done remain vague.
The Advantages of the Tax Reforms
1. Increased Revenue Generation
One of the main advantages of the tax reforms is the potential to significantly increase Nigeria’s revenue base. According to the Federal Inland Revenue Service (FIRS), the VAT increment alone is expected to raise an additional ₦1.5 trillion annually. This would support government spending on critical infrastructure and social services, which could benefit businesses by improving the overall business environment.
2. Encouragement for Formalization of Businesses
The tax reforms are expected to encourage the formalization of businesses, especially in the informal sector, by simplifying the tax collection process. This could be particularly beneficial for SMEs, which represent a significant portion of the economy. Formalization can provide access to credit, better market visibility, and government contracts, which would ultimately promote business growth.
3. Fairer Taxation Structure
The progressive tax rates based on turnover could level the playing field between large corporations and SMEs. Smaller businesses, which have often struggled to meet the same tax rates as bigger counterparts, could benefit from a more equitable system that acknowledges their limited capacity.
The Disadvantages of the Tax Reforms
1. Increased Cost of Doing Business
One of the primary concerns raised by business owners is the potential for increased operational costs. The VAT increase to 10% is expected to lead to higher prices for goods and services, which could result in reduced consumer spending. For SMEs operating on thin margins, these increased costs may not be sustainable, especially without corresponding increases in income.
2. Tax Compliance Challenges
While the government aims to increase compliance through these reforms, SMEs often face difficulties in navigating complex tax regulations. The lack of adequate tax education and support systems could make compliance burdensome for smaller businesses, which could lead to penalties and operational disruptions.
3. Potential for Overburdening Businesses
While the tax reforms intend to be progressive, the burden on businesses could still be overwhelming. A recent survey by the Lagos Chamber of Commerce and Industry (LCCI) indicated that 45% of SMEs find it difficult to pay taxes, citing high rates and complicated procedures as significant barriers. With the VAT increase and other changes, businesses, particularly in the retail and manufacturing sectors, may struggle to stay afloat.
Comparing Nigeria’s Tax Reforms to Other African Countries
Several African countries have recently undertaken tax reforms aimed at improving revenue generation. For instance, Kenya’s introduction of a higher VAT rate of 16% in 2018 generated a notable increase in tax revenues.
However, this also led to inflationary pressures that affected lower-income households. Similarly, South Africa’s progressive tax reforms, which included the introduction of tax credits for low-income individuals and the hike in VAT, have had mixed results. While the country saw an increase in revenue, the burden on consumers was significant, especially in a struggling economy.
In comparison, Nigeria’s proposed tax reforms seem to strike a balance between raising more revenue and alleviating the burden on SMEs. However, Nigeria’s challenge will be in balancing these interests while ensuring that the informal sector, which is notorious for its tax evasion, is adequately captured.
Data Analysis: Impact on SMEs
SMEs make up more than 90% of Nigeria’s businesses, yet they contribute a disproportionately small share of tax revenue. According to the National Bureau of Statistics (NBS), SMEs account for over 50% of the total workforce in Nigeria, but they contribute less than 5% of total tax revenue. This points to the untapped potential for tax collection within this sector.
By comparing the impact of VAT reforms across various sectors, it is evident that while some businesses, particularly in the retail and service sectors, may face higher operating costs, others—especially in agriculture and manufacturing—could see significant improvements in formalization and access to funding. The key will be for the government to ensure that support systems are in place for SMEs to ease their transition into the formal tax bracket.
Recommendations
Improved Tax Education and Support Systems the Nigerian government must prioritise education on the new tax systems, especially for SMEs. Providing training and clear guidelines on compliance can reduce the burden on small business owners.
Gradual Implementation A phased approach to implementing the VAT hike would help businesses, particularly SMEs, adjust to the new rates gradually. This would also provide time for the government to address any compliance challenges that arise.
Strengthening Infrastructure, the government should invest in technology and infrastructure to streamline tax collection and reduce the administrative burden on businesses. This includes improving online payment systems and creating a more transparent tax environment.
Incentives for SMEs Tax reliefs or subsidies for SMEs, particularly those in critical sectors like agriculture and manufacturing, could encourage business growth. Providing incentives for tax compliance could be a way to increase formalization without overwhelming businesses.
Conclusion
The proposed tax reforms in Nigeria present both opportunities and challenges for the business community. While the potential for increased government revenue and the formalization of businesses could create a more robust economy, the increased tax burden, especially for SMEs, requires careful management.
By learning from the experiences of other African nations and addressing the concerns of businesses through education, support, and phased implementation, Nigeria can strike a balance that benefits both its economy and its businesses in the long term.
Nigeria prepares to take center stage in the global fight against antimicrobial resistance (AMR) as it is named the host of the 5th High-Level Ministerial Conference on AMR in 2026. This announcement follows the conclusion of the 4th edition held in Jeddah, Saudi Arabia, from November 15 to 16, under the leadership of Saudi Arabia’s Minister of Health, Fahad Al-Jalajel.
Nigeria’s Coordinating Minister of Health and Social Welfare, Muhammad Ali Pate, confirms the country’s readiness to host the event, emphasizing the need for collective action against AMR. Pate, in a post on social media, expresses gratitude to Saudi Arabia for its leadership during the 4th conference and pledges to build on its success.
“We will learn and build upon the achievements of this year’s event,” Pate states. “Nigeria is prepared to welcome all member states in 2026, and we are counting on the troika system for a smooth transition and effective implementation.”
A Growing Threat
Pate underscores the severity of AMR, describing it as a “silent but dangerous problem” that threatens lives and livelihoods globally. He advocates for a unified “One Health” approach that integrates human, animal, and environmental health to prevent the spread of drug-resistant infections.
“We must prioritize prevention, ensure rational use of antimicrobials, and invest in research to develop innovative solutions,” Pate adds.
Key Outcomes from Jeddah
The Jeddah conference, themed “From Declaration to Implementation,” gathers global leaders, policymakers, and health experts to tackle the escalating AMR crisis. It culminates in the adoption of the Jeddah Commitments, which aim to strengthen governance, enhance surveillance, promote antimicrobial stewardship, and boost public awareness.
The commitments build on the 2016 Political Declaration on AMR adopted during the 79th United Nations General Assembly (UNGA79). They emphasize coordinated action to address AMR through prevention, responsible antimicrobial use, and investment in innovative solutions.
Saudi Arabia’s Legacy
Saudi Health Minister Fahad Al-Jalajel, who spearheads the 4th conference, highlights the importance of maintaining momentum through the troika mechanism—a system ensuring continuity and progress in AMR initiatives until the next conference in Nigeria.
“This is the time for action,” Al-Jalajel declares, adding that Nigeria’s selection as the next host reflects its growing role in the global AMR agenda.
Understanding AMR
The World Health Organization (WHO) defines AMR as the ability of bacteria, viruses, fungi, and parasites to resist medications, making infections harder to treat. This phenomenon increases the risk of severe illness, disease spread, and fatalities.
During UNGA79, world leaders set ambitious targets to combat AMR, including reducing drug-resistant infections, scaling up prevention measures, and adopting a One Health approach to address AMR across all sectors.
Nigeria’s Role in the Global Fight
As Nigeria gears up to host the 2026 conference, the country’s leadership vows to drive forward impactful actions against AMR. The event promises to strengthen global partnerships and accelerate the implementation of critical strategies to combat this growing threat.
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 1740.00 pe $1 on Monday, November 18 , 2024. Naira traded as high as 1658.00 to the dollar at the investors and exporters (I&E) window on Sunday.
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 N1735 and sell at N1740 on Sunday 17th November 2024, according to sources at Bureau De Change (BDC).
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN)
Black Market Exchange Rate Today
Buying Rate
N1735
Selling Rate
N1740
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN)
CBN Rate Today
Buying Rate
N1657
Selling Rate
N1658
Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.
Nigeria Imports 1.947 Million Metric Tonnes Of Petroleum Products Amid Dangote Refinery Pressure
Amid growing calls from Dangote Refinery for Nigeria to cease fuel importation, 1.947 million metric tonnes of petroleum products were imported between October 1 and November 11.
Documents obtained by The Cable reveal that 110 fuel cargoes were offloaded at terminals across Warri, Port Harcourt, Calabar, and Lagos during the six-week period.
The imports included premium motor spirit (PMS), also known as petrol, automotive gas oil (AGO), commonly referred to as diesel, and aviation fuel (Jet-A1).
Breakdown of Imports consisted of:
– Petrol: 1.52 million MT (2.02 billion litres)
– Diesel: 414,018 MT (487.1 million litres)
– Jet-A1: 13,500 MT (16.46 million litres)
The Nigerian National Petroleum Company (NNPC) accounted for 789,721 MT (1.05 billion litres) of the total volume, representing 40.5 percent of the imports.
Since the federal government deregulated the downstream petroleum sector on October 11, the Dangote Refinery has been campaigning for an end to petroleum imports.
Aliko Dangote, founder of the Dangote Group, expressed frustration during a press briefing on October 29, stating that the refinery had over 500 million litres of petrol in stock but was unable to sell due to ongoing imports.
Aliko Dangote, Africa’s wealthiest man, is actively working to secure billions of dollars to fund crude oil supplies for his $20 billion refinery located on the outskirts of Lagos. This move aims to ensure the facility operates at its full capacity of 650,000 barrels per day (bpd).
A report by the Financial Times reveals that Dangote is engaging with commercial banks, development lenders, oil traders, and other stakeholders to raise funds for crude procurement. Industry sources estimate that maintaining a steady supply of 300,000 barrels per day requires approximately $2 billion every 90 days.
Expanding Crude Sources
Dangote Industries sources crude from the US and Brazil and begins discussions with African suppliers, including Libya and Angola. Devakumar Edwin, a senior executive at the company, confirms these efforts to diversify crude supply. Even with 365,000 bpd expected from Nigeria’s state oil company, NNPC, Dangote still needs an additional 185,000 bpd to meet operational targets.
Addressing Challenges and Investor Concerns
The refinery faces several hurdles, including the naira’s sharp devaluation and construction costs that exceed budget estimates. Investors express concerns about the profitability of the project under these conditions. One banker involved in the fundraising comments, “The refinery may never make a profit in real terms.”
In a recent meeting with President Bola Tinubu and NNPC CEO Mele Kyari, Dangote seeks assurances that NNPC can supply crude with payments in naira. However, doubts persist about NNPC’s ability to fulfill this commitment due to its significant forward oil sales.
Support from Africa Finance Corporation
The Africa Finance Corporation (AFC), a major investor in the refinery, is actively involved in fundraising discussions. While AFC previously led a financing round to support the refinery’s launch, it declines to comment on its current role in the process.
Transforming Nigeria’s Energy Sector
The refinery, the largest single-train refinery in the world, is poised to transform Nigeria’s oil industry. It addresses the country’s reliance on imported refined products despite being Africa’s largest crude oil producer.
Currently operating at 420,000 bpd, the refinery produces jet fuel, naphtha, and petrol. Dangote projects it will reach full capacity by the second quarter of next year, meeting Nigeria’s entire petrol demand of 30–35 million liters daily and reducing fuel import dependence.
Dangote describes the project as a transformative initiative that tackles Nigeria’s refining challenges and reshapes the nation’s energy landscape.
The National Automotive Design and Development Council (NADDC) reveals it is ready to launch local manufacturing of vehicle spare parts, a move aimed at reducing Nigeria’s $1 billion annual expenditure on imports.
Joseph Osanipin, Director General of NADDC, shares this milestone during the conclusion of a two-week automotive engineering and software design training in Abuja. Organized in collaboration with South Korea’s Midas IT Co., the program focuses on Midas NFX software, a cutting-edge tool for advanced design and analysis.
Representing the DG, Fidelis Achiv, NADDC’s Director of Research Design and Development, outlines the council’s commitment to revitalizing Nigeria’s automotive sector. He emphasizes the push to integrate locally manufactured components into vehicle assembly.
“We are striving to achieve 40% locally produced components in vehicle assembly,” says Achiv. “Right now, the assembling in Nigeria contributes little value because most vehicles come in fully built, and only minor reassembly is done. Our goal is to move to a stage where critical processes like welding and parts production are done locally, adding value and creating jobs.
“With over 11 million vehicles on our roads, if Nigeria can excel in producing even 10 high-quality components recognized globally, the market potential is enormous, and the economic impact will be transformative,” he adds.
Boosting Skills and Innovation
The training, which equipped 15 engineers with advanced skills, is a key step toward achieving this vision. Participants learned to design and produce parts, positioning Nigeria to become more self-sufficient in vehicle manufacturing.
Abdul-Lawal Zubair, Managing Director of FAZSAL Nigeria Limited, urges participants to apply their skills practically to address industry challenges. “You’ve gained not just theoretical knowledge but hands-on experience. Be innovative and offer solutions that showcase your expertise. This training can open doors for further opportunities, possibly even advanced sessions in South Korea,” he says.
One participant, Lukman, expresses appreciation for the training, noting its transformative impact. “This program has expanded my thinking. The Midas NFX software is exceptional for design and analysis. We are now better equipped to innovate and contribute to producing what we consume,” he shares.
By fostering local expertise and manufacturing capacity, NADDC is paving the way for Nigeria to reduce its reliance on imported spare parts and create a more sustainable automotive industry.
Aradel Holdings PLC saw its share price jump by 10% on the Nigerian Exchange (NGX) last week, driven by a surge in employee share acquisitions. The development halted the oil company’s recent price depreciation, boosting its market valuation and rekindling investor interest.
The upward movement followed a decision by one of Aradel’s major shareholders to reduce their stake in the company. This strategic move was aimed at improving liquidity and fostering demand for the stock, a key step towards meeting NGX’s free float requirements.
Market Performance
Trading under the ticker ARADEL, the company’s share price rose from N485.30 at the beginning of the week to N533.80 by Friday, recording a 10% increase in a single trading session. Despite this, Aradel’s high share price has limited its appeal to retail investors, although recent filings reveal a growing trend of insider acquisitions by employees and their relatives.
Historical Context and Valuation
Aradel Holdings debuted on the NGX at N702.69 per share but has struggled to maintain its initial valuation. The company’s stock once peaked at N850.10, but it closed last week with a market capitalisation of N2.32 trillion, reflecting a 24% loss from its initial listing value of 4.344 billion shares.
Financial Highlights
According to the company’s unaudited financial report for the first nine months of 2024, Aradel recorded an earnings per share (EPS) of N25.45. The board has also declared an interim dividend of N8 per share, underscoring its commitment to delivering value to shareholders despite market challenges.
Future Outlook
As insider acquisitions gain momentum, analysts are optimistic about the stock’s potential for recovery. Aradel’s efforts to stabilise its valuation and improve liquidity could attract more investors, paving the way for sustained growth in the equities market.
The cryptocurrency market took a dramatic leap as Bitcoin’s price surged beyond $91,400, according to trading data. This rally was fueled by growing demand for Bitcoin Exchange Traded Funds (ETFs) and expectations of favorable regulations under the Donald Trump administration.
Investors responded positively to Trump’s comments, which signaled support for the digital assets sector. The price spike across Bitcoin (BTC-USD) and other leading cryptocurrencies drove the global market capitalization to $3.05 trillion, a 3.18% increase in the last 24 hours.
Market Highlights:
The total cryptocurrency market volume over the past day stood at $188.05 billion, marking a 13.91% decline.
DeFi platforms saw trading volume climb to $8.24 billion, representing 4.38% of the total 24-hour crypto market activity.
Stablecoin volumes accounted for 90.27% of the market, amounting to $169.75 billion.
Bitcoin gained 3.9%, trading at $91,211, with a weekly gain of approximately 19%. It reached a record high of $93,434 earlier in the week. However, trading volume decreased by 8%, settling at $81.9 billion. Other cryptocurrencies showed mixed performance:
Ethereum (ETH-USD): Down 0.7%, trading at $3,080, with a weekly rise of 5%.
Solana (SOL-USD): Up 1%.
BNB (BNB-USD): Down 2.7%.
Dogecoin (DOGE-USD): Declined by 3.2%.
XRP and Cardano: Surged 10% and 20%, respectively.
The CoinDesk Market Index, which tracks 126 digital assets, rose 2.1% in the past 24 hours. In contrast, U.S. stock markets recorded losses, with the Nasdaq 100, S&P 500, and Dow Jones dropping by 2.5%, 1.4%, and 0.7%, respectively.
The Nigerian Exchange (NGX) market experienced growth this week, adding N295 billion to its market capitalization as investors capitalized on undervalued stocks and upbeat Q3 earnings. The All-Share Index (ASI) climbed by 0.50%, closing at 97,722.28 points.
Stockbrokers attributed the positive momentum to sector rotation and portfolio rebalancing activities. This optimism was tempered by cautious trading, with 45 stocks declining compared to 39 gainers.
Weekly Market Insights:
Trading Activity: Total volume and value of trades fell by 77.1% and 48.7% week-on-week, respectively, with 1.48 billion units valued at N38.88 billion exchanged in 44,795 trades.
Sectoral Performance: The insurance, banking, and consumer goods sectors saw gains of 2.84%, 2.32%, and 0.60%, respectively. In contrast, the Oil & Gas and Industrial sectors recorded marginal losses of 0.29% and 0.20%.
The NGX market capitalization closed the week at N59.22 trillion, with analysts pointing to continued optimism for strong-performing sectors and undervalued stocks.
Nigeria’s debt burden is projected to rise significantly, with total debt expected to account for 54.6% of the country’s gross domestic product (GDP) by the end of 2024, according to analysts at Cordros Securities.
The Debt Management Office (DMO) reported a 10.4% increase in Nigeria’s public debt between March and June 2024, bringing the total to ₦134.30 trillion. At the beginning of the year, total debt stood at ₦121.67 trillion but climbed due to increased borrowing and the devaluation of the naira by mid-year.
Cordros analysts attributed this debt surge to persistent revenue underperformance, increased government expenditures, and the weakening of the naira, which has amplified the burden of foreign-denominated debt.
Domestic and External Debt Trends
Data from the DMO revealed that domestic debt comprised 53% of Nigeria’s total public debt, while foreign debt accounted for 43% as of June 2024. Domestic debt rose by 8.5% within the second quarter, reaching ₦71.22 trillion, up from ₦65.65 trillion in March.
On the external debt front, there was a 1.9% increase, bringing the total to $42.90 billion by June. This figure included additional borrowing of $1.22 billion from the World Bank, offset slightly by a $418.8 million repayment to the International Monetary Fund (IMF).
In naira terms, external debt surged by 12.6% to ₦63.07 trillion during the same period due to an average exchange rate of ₦1,470.19/USD in Q2, compared to ₦1,330.26/USD in Q1.
On a year-over-year basis, total public debt grew by 53.7%, pushing the debt-to-GDP ratio to 50.8%. Analysts anticipate further increases as the Federal Government borrows to bridge the 2024 budget deficit and as currency depreciation continues to inflate the naira value of foreign debt.
“We project Nigeria’s total public debt to reach ₦144.34 trillion, or 54.6% of GDP, by the end of 2024,” Cordros said in its report.
Names Of Forex Policy Defaulters Will Be Published, Banks Tell Customers
Interbank lending rates fell sharply last week, driven by an influx of liquidity from Remita inflows and coupon payments on Federal Government of Nigeria (FGN) bonds.
According to data from the FMDQ platform, short-term interest rates dropped below 27% by Friday, down from over 32% the previous week. Liquidity constraints in prior weeks had forced some banks to rely on the Central Bank of Nigeria’s (CBN) standing lending facility to meet funding needs.
Last week’s decline in interest rates was supported by inflows of ₦143.52 billion from FGN bond coupons and additional funds from Remita. However, these inflows were partially offset by ₦100 billion in cash reserve debits and ₦137 billion in outflows for foreign exchange (FX) settlements, according to Cordros Securities.
The average system liquidity closed at a net shortfall of ₦57.77 billion, a significant improvement from the ₦361.08 billion deficit recorded the previous week.
Outlook for Liquidity and Interest Rates
In the coming week, analysts expect system liquidity to face fresh debits of around ₦120 billion for FGN bonds and additional outflows tied to a Treasury bills auction. These are expected to counter anticipated inflows of ₦9.37 billion from FGN bond coupons and ₦6.38 billion from OMO maturities.
The anticipated reduction in liquidity is likely to push money market rates higher. Despite a deficit of ₦60 billion at the start of last week, the system’s liquidity improved significantly, ending with a surplus of ₦396.75 billion, according to a note by AIICO Capital Limited.
By week’s end, the overnight policy rate dropped by 5.86% to 26.09%, while the overnight lending rate fell by 5.60% to 26.88%, signaling a short-term easing in financial conditions.
The Independent National Electoral Commission (INEC) has declared Mr. Lucky Aiyedatiwa, the All Progressives Congress (APC) candidate, the winner of the 2024 Ondo State governorship election held on Saturday. Aiyedatiwa emerged victorious, winning in all 18 Local Government Areas (LGAs) of the state.
The final result, announced on Sunday by the State Returning Officer, Professor Olayemi Akinwumi, revealed that Aiyedatiwa polled a total of 366,781 votes, defeating his closest rival, Agboola Ajayi of the Peoples Democratic Party (PDP), who garnered 117,845 votes.
Prof. Akinwumi, the Vice-Chancellor of the Federal University Lokoja, stated:
“I, Professor Olayemi Durotimi Akinwumi, hereby certify that I am the Returning Officer for the 2024 Ondo State governorship election held on 16th November 2024. That Aiyedatiwa Lucky Orimisan of the APC, having satisfied the requirements of the law, is hereby declared the winner and governor-elect.”
Election Statistics
The total valid votes stood at 497,077, while 11,886 votes were rejected. The total votes cast were 508,963.
Aiyedatiwa’s victory was comprehensive, securing wins even in areas traditionally dominated by the opposition. Notably, in Idanre LGA, where the PDP’s deputy governorship candidate, Mr. Festus Akingbaso, hails from, the APC candidate triumphed with 14,157 votes, compared to PDP’s 5,897 votes.
Claims of Irregularities
Despite the decisive win, the PDP raised allegations of electoral malpractices. Party agent Olaniyi Ogungbuji claimed that voting did not occur in some areas, including Ofosun Oniseri, citing instances of ballot snatching and intimidation of PDP agents. He urged INEC to discount votes from these areas.
Breakdown of Results by LGAs
1. Ifedore LGA:
APC: 14,157
PDP: 5,897
SDP: 21
2. Ondo East LGA:
APC: 8,163
PDP: 2,843
SDP: 15
3. IleOluji/OkeIgbo LGA:
APC: 16,600
PDP: 4,442
SDP: 08
4. Idanre LGA:
APC: 9,114
PDP: 8,940
LP: 24
APGA: 25
5. Irele LGA
APC: 17,117
PDP: 6,601
LP: 15
APGA: 30
6. Akoko South West LGA
APC: 29,700
ADP: 87
PDP: 5,517
APGA: 23
SDP: 11
7. Owo LGA:
APC: 31,914
ADP: 140
PDP: 4,740
AAC: 16
APGA: 36
LP: 42
8. Ose LGA
AA: 03
AAC: 08
APGA: 19
ADC: 141
APC: 16,555
LP: 06
PDP: 4,472
9. Akure South LGA:
AA: 08
AAC: 58
APGA: 95
ADC: 630
APC: 32,969
PDP: 17,926
LP: 238
SDP: 138
ZLP: 252
10. Akoko North East:
AA: 03
AAC: 19
APGA: 36
APC: 25,657
LP: 14
PDP: 5,072
SDP: 03
11. Ondo West LGA
A: 31
AA: 09
AAC: 30
ADC: 415
ADP: 143
APC: 20,755
LP: 181
PDP: 6,387
SDP: 123
12. Akoko South East LGA
A: 02
AAC: 04
ADC: 81
ADP: 28
APC: 12,140
APGA: 19
PDP: 2,692
SDP: 03
13. Akoko North West LGA
A: 06
AA: 04
AAC: 14
ADC: 130
ADP: 51
APC: 25,010
APGA: 21
LP: 23
PDP: 5,502
SDP: 05
14. Akure North LGA
A: 9
ADC: 180
APC: 14,451
LP: 238
PDP: 5,787
PRP: 6
SDP: 46
15. Okitipupa LGA
A: 5
ADC 284
APC: 26,811
LP: 27
PDP: 10,233
PRP: 17
SDP: 18
16. Odigbo LGA
AA: 08
AAC: 29
APGA: 76
APC: 26,683
LP: 34
PDP: 9,348
PRP: 31
SDP: 12
ZLP: 70
17. Ilaje LGA
AA: 02
AAC: 10
ADC: 107
AGPA: 21
APC: 24,474
PDP: 3,632
LP: 176
ZLP: 04
18. Ese Odo LGA
AA: 01
AAC: 03
APC: 14,511
APGA: 17
PDP: 7,814
LP: 45
Conclusion
Following the announcement of the results, party agents, including those from the PDP, signed off on the result sheets, confirming the electoral process. With this win, Lucky Aiyedatiwa is set to serve as the next governor of Ondo State.
Week 21 pool Results 2024: Football pools results, live football pool result today, pool result today Saturday matches, pool results for this week, British and Aussie pool results, football pools results and fixtures, pools panel results today, pool panel results, and live score pool result today. We present the first half-time results of this sort.
Week 21 Pool Results 2024: This week’s football pool results are published on this page as soon as full-time live score confirmation is received. We also announce the results of postponed matches by the football pool panel at halftime, as agreed by them. This Week 21 Pool Results was brought to you by Bizwatch Nigeria.
WEEK: 21; SEASON: UK 2024/2025; DATE: 23-November-2024
Nigerian Government Redirects N5.4 Trillion Fuel Subsidy Savings To National Development Projects
The Nigerian government confirms that it is redirecting an estimated N5.4 trillion in savings from the removal of fuel subsidies in 2024 towards critical infrastructure and social intervention programs designed to improve living standards for citizens and support nationwide development.
CBN Raises Over N2.07 Trillion Through Treasury And OMO Bill Auctions
The Central Bank of Nigeria (CBN) has generated more than N2.07 trillion from the financial markets through sales of Treasury and Open Market Operations (OMO) bills, according to recent auction results.
Rising Inflation Rate Expected Due To Currency Instability And High Food Prices
Nigeria’s inflation rate is projected to continue its upward trend, driven by rising logistics costs and exchange rate pressures impacting food prices across the country. Analysts anticipate this increase ahead of October’s monthly inflation report.
CBN Spends $383 Million To Support Naira, 30% Drop From September FX Sales
CBN’s Move: The Central Bank of Nigeria (CBN) reduced its foreign exchange support to the naira by approximately 30% in October 2024, selling fewer U.S. dollars to authorized dealer banks. This marks a slowdown in the CBN’s efforts to support the naira amid rising pressure on the currency.
Money Market Rates Surge Amid Liquidity Shortfall In Banking Sector
Money market rates surged last week due to a liquidity deficit in the banking sector. The market began on a strong note but was impacted by outflows from auction sales, which tightened liquidity further.
Naira Plummets To N1,740 Per Dollar In Parallel Market Amid Record-High FX Turnover
The naira continued to face pressure in Nigeria’s foreign exchange market, falling to N1,740 per dollar in the parallel market on Monday, marking a loss of N8 from the previous day’s rate of N1,732/$. This depreciation persists despite a surge in FX turnover and an increase in the country’s external reserves. Click here to read more…
Fitch Solutions Forecasts Naira Depreciation To N1,993 Per Dollar By 2028, Impacting Medical Device Imports
Fitch Solutions projects a significant depreciation of the naira, predicting it will reach N1,993 per dollar by 2028. This decline is expected to pose challenges for Nigeria’s pharmaceutical sector, particularly in the importation of medical devices.
Foreign Investors Drawn To Nigeria’s Eurobonds After U.S. Rate Cut
International investors have increased their exposure to Nigeria’s Eurobonds amid improved market sentiment, driven by the recent U.S. Federal Reserve rate cut of 0.25% to a range of 4.50%-4.75% and U.S. election results. Click here to read more…
Nigerian Bonds Yields Settle At 19.41% As Inflation Looms
The average yield on Federal Government of Nigeria (FGN) bonds reached 19.41% in the secondary market last week, following mixed trading sessions and in anticipation of upcoming inflation data.
Nigeria’s Inflation Rate Set To Increase In October Amid Economic Pressures
Nigeria is set to experience a further increase in its inflation rate for October 2024, according to insights from several economists. This follows a recent increase in September’s inflation rate, which stands at 32.70% year-on-year (YoY), up from 32.15% in August. This upward trend comes after brief relief in July and August when inflation slightly eased to 33.40% YoY in July from 34.19% in June.
Cryptocurrency Market Reaches Record $3 Trillion Amid Regulatory Optimism Following Trump’s Election
The global cryptocurrency market cap has hit an unprecedented $3 trillion, driven by renewed optimism following Donald Trump’s recent election as U.S. President. Investors are anticipating more favorable regulatory policies under the new administration, which has boosted confidence in digital assets.
Bitcoin’s price has surged above $90,000 on Thursday, driven by post-U.S. election trading trends and optimism surrounding a pro-cryptocurrency stance in the new administration. Since the election, Bitcoin has climbed by 30%, with investors responding to Donald Trump’s support for increased cryptocurrency regulation. Click here to read more…
Money Market Rates Continue To Climb Amid Tight Liquidity
Money market rates surged higher on Thursday as liquidity constraints worsened within the banking system. With minimal inflows from maturing financial instruments, the market liquidity level dipped into negative territory once more.
Nigeria’s Promissory Notes Debt Rises To N1.65 Trillion, Up 114% Under Tinubu Administration
Nigeria’s Debt Management Office (DMO) reports a significant increase in the federal government’s Promissory Notes debt, which reaches N1.65 trillion as of June 2024. This figure represents a 6.5% rise from March 2024 and marks a staggering 114% increase since President Bola Tinubu assumed office.
Nigeria To Issue $1.7 Billion Eurobond To Fund 2024 Budget Shortfall
The Federal Government announces plans to raise around $1.7 billion through Eurobonds to address revenue gaps in the 2024 budget. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, confirms this development during a press briefing at the State House in Abuja.
Nigeria Targets N120 Billion In November Bond Auction, Marking 33% Decline From October Issuance
The Federal Government of Nigeria, through the Debt Management Office (DMO), announces plans to raise N120 billion in its November 2024 bond auction. This amount represents a 33.3% decrease compared to the N180 billion raised in October, suggesting a possible shift in borrowing strategy or improved revenue inflows.
Nigeria’s Debt-to-GDP Ratio Climbs To 55% By Mid-2024 As FG Plans New N9 Trillion Borrowing
Nigeria’s debt-to-GDP ratio increases to 55% as of June 2024, up from 42.4% in December 2023. This significant rise is reported by the Debt Management Office (DMO), indicating that the country’s external debt now stands at $42.9 billion, while domestic debt has surged to N71.2 trillion.
CBN Vows Heavy Sanctions On Banks Abetting Naira Hawking
The Central Bank of Nigeria (CBN) has announced stringent measures to curb the hawking and abuse of the Naira, warning that Deposit Money Banks (DMBs) found culpable will face severe penalties.
Stanbic IBTC Holdings has reaffirmed its market leadership by securing multiple prestigious awards at the 2024 FMDQ Gold Awards. Recognised for its excellence, resilience, and innovation, Stanbic IBTC Bank received top honours in the following categories: FMDQ FX Market Liquidity Provider, FMDQ Dealing Member of the Year, and FMDQ Fixed Income Market Liquidity Provider. Stanbic IBTC Asset Management was honoured as the Most Active Buy-Side Participant in the Fixed Income Market,
The FMDQ Gold Awards celebrate excellence within Nigeria’s financial markets, highlighting institutions that demonstrate leadership, innovation, and substantial contributions to the nation’s financial ecosystem. Stanbic IBTC’s achievements in these competitive categories underscore its commitment to driving the growth and development of Nigeria’s financial landscape.
Speaking on the achievement, Eric Fajemisin, Executive Director, Corporate and Investment Banking, Stanbic IBTC Bank, expressed pride in the bank’s accomplishments, stating, “These awards at the FMDQ Gold Awards reflect our unwavering commitment to excellence within the Nigerian financial market. At Stanbic IBTC, we are dedicated to pioneering solutions that enhance liquidity, improve market efficiency, and deliver the best possible outcomes for our clients. This recognition inspires us to continue pushing boundaries and setting new standards across our service offerings.”
Busola Jejelowo, Chief Executive, Stanbic IBTC Asset Management, added, “These awards affirm our leadership in trading and market-making. We take pride in our role as a liquidity provider in critical segments like fixed income and FX markets. Being recognised as a key player in these essential areas motivates us to continue advancing Nigeria’s financial markets and supporting sustainable economic growth.”
Stanbic IBTC remains dedicated to fostering Nigeria’s economic development by providing innovative solutions that empower clients and drive market progress. These accolades underscore the group’s enduring impact and its commitment to excellence in all facets of financial service delivery.
The future of technology is built on bold ideas and fearless innovation—and nowhere was that more evident than at Interswitch’s Technovation 3.0 Hackathon. Held by Interswitch’s Innovation Team, this year’s edition brought together some of Interswitch’s brightest minds in tech, entrepreneurship, and problem-solving for an intense day of innovation, collaboration, and competition.
The hackathon once again showcased the incredible potential of Africa’s tech ecosystem, with groundbreaking ideas that promise to solve real-world problems and create lasting impact.
After days of coding, brainstorming, and refining their prototypes, the top three teams were selected from a talented pool of participants, each having impressed the judges with their forward-thinking ideas and ambitious goals. From financial inclusion to renewable energy and education, these teams are redefining what’s possible with technology, and they are paving the way for a brighter, more sustainable future.
The Winning Ideas
2nd Runners-Up: FusionBuild – Revolutionizing Credit Access for Salary Earners
The team behind FusionBuild (comprising Senior Project Implementation Engineer, Richard Ali; Service Management Executive, Anthony Edeh; Merchant Acquiring Executive, Folashade Akinade; Hardware Engineer, Promise Okere; and Business Development Manager, Chika Akaeze) presented an innovative idea aimed at solving one of the most persistent challenges for salary earners—access to credit. With the rise of financial inclusion, their project promises to level the playing field for millions of Nigerians who are often excluded from formal credit systems.
FusionBuild was awarded a generous two million Naira in start-up capital to further develop their idea.
1st Runners-Up: Technovate – Powering the Future with Solar Energy
Technovate (led by Technology Risk Analyst, Oluwatoyin Dove-Francis; Operations Representative, Obijiaku Blessing; Software Engineer, Michael Chinweike; and Embedded System Engineer, Israel Obanijesu) secured the first runner-up position with their impressive prototype of an all-in-one solar inverter system. This solution could be a game-changer for rural communities and urban dwellers alike, offering a cleaner, more cost-effective alternative to conventional power sources.
For their exceptional work, Technovate walked away with three million Naira in start-up funds, setting them up for continued success in the renewable energy space.
Winners: Skoot Labs – Empowering the Financial Future of Children
The top prize, five million Naira in seed capital, went to Skoot Labs (comprising Software Engineer, Suleiman Suleiman; Quality Assurance Engineer, Samuel Udo; Software Engineer, Olayinka Jaji; Program Manager, Olamide Ajayi; and Product Manager, Olugbenga Olumide), whose idea was both innovative and heartwarming. The team introduced a product designed to empower and secure the financial future of young children, one financial transaction at a time. Their solution—a child-friendly, easy-to-use mobile banking and savings platform—allows children to learn about money management from a young age, while giving parents a secure way to save for their children’s future. This product not only promotes financial literacy among the younger generation but also helps parents build a financial safety net for their children’s education and future needs.
Adaobi Okerekeocha, Interswitch’s Chief Innovation Officer, expressed her excitement about the winners, stating:
“At Interswitch, we are committed to fostering innovation that not only addresses today’s challenges but also anticipates tomorrow’s needs. The ideas presented at this Hackathon are a perfect example of how technology can create lasting change. The winning projects—particularly Skoot Labs’ initiative to empower the next generation with financial literacy—embody our belief that innovation is most impactful when it serves the broader community.”
As the 3rd edition of the Interswitch Technovation Hackathon wraps up, it’s clear that the future is bright for these emerging innovators. The winning teams—FusionBuild, Technovate, and Skoot Labs—are already on their way to turning their ideas into impactful solutions that will create seamless integration for corporates and easy adoption and usage for consumers.
Interswitch’s continued support for these teams, along with its focus on driving innovation in the fintech, energy, and education sectors, will help ensure that these projects have the resources they need to succeed. For everyone who participated in this year’s hackathon, the journey is just beginning, and Africa anticipates a bright future as these innovators take their ideas to new heights.
Nigeria’s debt-to-GDP ratio increases to 55% as of June 2024, up from 42.4% in December 2023. This significant rise is reported by the Debt Management Office (DMO), indicating that the country’s external debt now stands at $42.9 billion, while domestic debt has surged to N71.2 trillion.
The rise in public debt is driven by factors such as exchange rate depreciation and a boost in domestic borrowing, often at higher interest rates, which contribute to the nation’s increased debt levels in 2024.
Breakdown of Debt Data
Using an exchange rate of N1,505 to $1 as of June 30, 2024, Nigeria’s total public debt is calculated at N135.6 trillion. The country’s GDP for the trailing four quarters, ending in June 2024, amounts to N246.3 trillion, resulting in a debt-to-GDP ratio of 55%. This is a marked increase from the 42.4% ratio recorded in December 2023, when total debt was N97.4 trillion, comprising $42.4 billion in external debt and N59.1 trillion in domestic debt.
Nigeria’s debt-to-GDP ratio, previously one of the lowest in sub-Saharan Africa, is now rising due to factors like currency depreciation and higher local borrowing. This increasing ratio underscores potential risks to fiscal stability, heightening Nigeria’s vulnerability to external economic shocks and placing pressure on public resources.
Despite this upward trend, Nigeria’s debt-to-GDP ratio remains below that of other African nations like Ghana (82.9%), South Africa (72%), and Kenya (70%). However, Nigeria continues to face challenges in meeting debt servicing obligations due to a high debt service-to-revenue ratio.
Escalating Debt Servicing Costs
Debt servicing costs in Nigeria have surged, with payments rising by 39.77% from $2.56 billion between January and September 2023 to $3.58 billion in the same period of 2024. Debt servicing now accounts for 73.97% of total foreign payments amounting to $757.41 million for September alone.
To address the growing fiscal pressures, the federal government announces a proposed 2025 budget of N47.9 trillion as part of its medium-term expenditure framework. This budget will be partly funded by new borrowing of N9.2 trillion, aimed at bridging the projected budget deficit for the next fiscal year.
The government’s fiscal strategy reflects the ongoing effort to balance economic growth and financial sustainability amid rising debt obligations.
The Federal Government is currently pursuing a $1 million grant from the African Development Bank (AfDB) to provide emergency food assistance to Nigerians impacted by the 2024 floods.
This initiative aims to address the significant displacement and food insecurity caused by the disaster, which affects 29 states, displaces over 200,000 people, and destroys more than 500,000 hectares of farmland.
The plan targets 122,253 individuals in 16 of the most severely affected districts, offering food packages that include 25kg of rice and 10kg of beans. The food distribution is set to take place between October 2024 and February 2025, supplementing the Federal Government’s ongoing relief efforts, which have already provided rice and spaghetti to affected households.
The proposal states that the project seeks to complement the government’s relief efforts and those of development partners in saving lives and safeguarding livelihoods during the current crisis. The AfDB, through its Special Relief Fund (SRF), plans to contribute $1 million, while the World Food Programme (WFP) will deploy its field expertise to identify beneficiaries and coordinate the food distribution.
Allocation of $1 Million AfDB Grant
Out of the total grant, $870,919 is designated for the purchase and transport of food supplies, covering 799.046 metric tons of cereals and beans. This expenditure accounts for the bulk of the funding to provide critical food support to the most affected households across 16 districts. Additionally, $48,421 is set aside for project implementation costs, including logistics managed by WFP field offices.
Another $42,198 covers direct support costs, which include management expenses at the WFP Country Office. The remaining $38,462, or 4% of the total grant, goes toward indirect support costs as per WFP’s guidelines, ensuring proper oversight and accountability throughout the program.
AfDB and WFP Lead Relief Operations
The AfDB’s contribution will facilitate food procurement and distribution, with the WFP leading field activities, such as beneficiary targeting and food delivery. This intervention aims to supply 35kg of food per household to ensure dietary diversity and address nutritional needs during the four critical recovery months.
Flooding, exacerbated by the collapse of the Alau Dam in Borno State, severely impacts northern Nigeria. In Maiduguri, over half the city remains submerged, disabling essential infrastructure, including the Maiduguri Teaching Hospital and 25 schools. The disaster also triggers outbreaks of waterborne diseases like diarrhea and malaria, further worsening the situation for vulnerable communities.
The National Emergency Management Agency (NEMA) describes the situation as beyond the government’s capacity, highlighting the urgent need for international assistance. President Bola Tinubu has previously called for global support to manage this humanitarian crisis that strains local resources.
Focus on Direct Food Assistance
Due to rising food prices identified by the Food and Agriculture Organisation, cash-based aid proves less effective, prompting the AfDB to focus on direct food transfers. This approach aligns with ongoing United Nations-led efforts to mitigate the socio-economic impact of the floods, which exacerbate Nigeria’s already fragile economic conditions.
The AfDB grant covers the costs associated with food procurement, logistics, and distribution operations. Post-distribution monitoring will assess the program’s impact on food security and the well-being of beneficiaries.
Additional Support and Background
The United States, through USAID, has previously committed over $6.5 million to support flood-related humanitarian efforts in Nigeria, adding to nearly $100 million in total aid for various crises.
In Borno State, despite receiving about N816.34 million from the Ecological Fund in the first half of 2024, only N20 million has been spent on flood control, representing just 2.45% of its allocated funds. The revised 2024 budget allocates N1.653 billion for flood and erosion control, but only 1.2% of this budget has been utilized, raising concerns over the state’s preparedness and resource management.
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