Nigeria’s US dollar bond or Eurobond yield has risen above 10% as a result of the recent selling rally in the international financial markets. Investors sold off their positions ahead of the US Fed’s rate cut this month. The risk-off sentiment was observed at the short, belly, and long ends of the curve.
Nigeria is still experiencing an extreme foreign exchange shortage, which has caused the value of the native currency to reach an all-time high. Benchmark US government bond yields were near a 14-month low on Thursday, as traders waited for jobs data to confirm or refute concerns about a weakening economy.
The yield on the 2-year Treasury rose by 0.9 basis points to 3.783%. Yields move in the opposite direction to prices. The yield on the 10-year Treasury added 1.5 basis points to 3.774%.The yield on the 30-year Treasury climbed 1.2 basis points to 4.072%.
Yesterday, in Nigeria’s sovereign Eurobonds market, sell sentiment prevailed across the short, mid and long ends of the yield curve, causing a 10 basis point rise in the average yield to 10.01%.
The crude oil market remained in the clutches of pessimistic speculators, with demand fears overshadowing efforts by the Organization of Petroleum Exporting Countries to stabilize the market, according to an ANZ Bank note released on Thursday.
According to ANZ Bank, OPEC+ alliance members are close to reaching an agreement to stop their plan to phase down output cutbacks. The report provided some respite to the markets.
However, fears about weaker demand resurfaced to force prices lower, triggered earlier this week by more dismal economic data, the bank said.
The Federal Reserve also reported falling economic activity in the United States, and the likelihood of easing monetary policy elicited little response from investors, according to ANZ Bank.
After recording losses in the previous session, Brent crude gained 0.9% to US$73.36 per barrel and West Texas Intermediate crude rose 0.9% to US$69.81/b at last look early Thursday.
The Dangote Group has refuted reports suggesting that the Nigerian National Petroleum Company Limited (NNPCL) is currently purchasing petrol from its refinery at a price of N897 per liter.
In a statement released on Thursday, the Group’s Chief Branding and Communications Officer, Anthony Chiejina, clarified that the company is unable to set the price of petrol as its arrangements with the NNPCL have not been finalized. Chiejina added that the group has taken notice of a headline, “NNPC lifts Dangote Petrol, sells at N897 per liter,” published in a national daily.
“We would like to state that NNPC has not commenced lifting of refined Premium Motor Spirit (PMS), commonly known as petrol, from our Dangote Petroleum Refinery.
“Therefore, the issue of fixing the price of petrol lifted from our refinery does not arise, as we are yet to finalize our contract with NNPC,” the statement read in part.”
The company further emphasised that “the PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector,” and therefore, “we cannot determine, fix, or influence the product price, which falls under the purview of relevant government authorities.” In response to the erroneous headline, “NNPC lifts Dangote Petrol, sells at N897 per liter,” the group urged the public to disregard this inaccurate information and reaffirmed its commitment to transparency and fairness in its operations.
Aliko Dangote, the Group Chief Executive Officer, previously disclosed that the Federal Executive Council was working on a new pricing mechanism for petrol produced at the Dangote Refinery. The 650,000-barrel-per-day facility officially unveiled its refined petrol on Tuesday with Dangote announcing that product will be in filling stations in the next 48 hours depending on the country’s national country.
“It is an arrangement which is designed and approved by the Federal Executive Council led by His Excellency, President Bola Ahmed Tinubu.
“As soon as it is finalised, which he (Tinubu) is pushing, once we finish with NNPC, it can be today, it can be tomorrow, we are ready to roll into the market,” he said.
Just hours after Dangote’s comments regarding the petrol pricing arrangement, the Nigerian National Petroleum Company Limited (NNPCL) reportedly instructed its retail outlets to increase the pump price of petrol to N855 per liter. This development occurred only two days after the company acknowledged difficulties in importing fuel due to an outstanding debt of $8 billion.
PRESSSTATEMENT
NNPC YET TO LIFT OUR PETROL
Our attention has been drawn to a headline “NNPC lifts Dangote Petrol, sells at N897 per litre” published in the BusinessDay Newspapers of Wednesday, 4 September 2024. We would like to state that NNPC has not commenced lifting of refined Premium Motor Spirit (PMS), commonly know as petrol, from our Dangote Petroleum Refinery.
Therefore, the issue of fixing the price of petrol lifted from our refinery does not arise, as we are yet to finalize our contract with NNPC. The PMS market is strictly regulated which is known to all oil marketers and stakeholders in the sector, hence we can not determine, fix, or influence the product price which falls under the purview of relevant government authorities
We urge the public to disregard the headline as it is misleading and does not represent the true position in this matter. We are guaranteeing Nigerians of exceptionally high quality petroleum products that will be readily available all over the country.
This article was written by Tamaraebiju Jide, a student at Elizade University
• Fuel Prices Surge as Major Marketers Increase Rates Amidst Arrival of Three PMS Vessels
The Nigerian National Petroleum Corporation (NNPCL) has reportedly suspended the sale of Premium Motor Spirit (PMS), commonly known as petrol, to independent marketers following a recent price increase.
This decision comes as three vessels carrying imported petrol docked at the Apapa jetty in Lagos on Wednesday.
The price hike sparked widespread protests, particularly in Delta State, where commercial tricycle operators, or “keke” riders, took to the streets of Warri and Effurun to oppose the increase. Commuters across Nigeria faced significant challenges due to the worsening fuel scarcity and extended queues.
Many commercial motorists were unable to operate, expressing frustration over the sharp rise in fuel prices just a month after nationwide protests over economic hardship.
The National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, revealed that the NNPC stopped selling fuel to independent marketers on Tuesday when it raised the price of a litre of PMS to N855 and above across its retail outlets nationwide.
Independent marketers sold the product for as much as N1,200 and N1,300/litre in some states following the upward review of prices by the NNPC.
Fashola wondered why the national oil firm would suspend the sale of petrol to the marketers take without any official communication, even when the marketers had paid for the product over two months ago.
Asked if it was true that many of the independent marketers did not go to the depot to lift fuel, Fashola responded, “What are they going there to do? They have stopped our loading. All the tickets we have in the kitties of NNPC, they are not treating them; everything has been suspended.”
When our correspondent inquired to know if the suspension was done despite having paid for the product ordered, he replied, “Yes, our tickets were suspended for loading. They have not been attending to us since yesterday (Tuesday), and there is no official communication yet.
“It is a very bad situation for somebody who has paid for the product, maybe like two to three months ago, and all of a sudden, you stopped loading, maybe because you want to change the price. And it’s not the fault of that customer, because it is supposed to be cash-and-carry. So, I think the NNPC should look at that situation critically.”
It was learnt that NNPC usually prioritised major marketers while IPMAN members resorted to private depot owners, who sold at higher prices, leading to a wide gap between the prices offered by both categories of marketers.
“We’re usually forced to go to private depots, it’s not out of our own volition. We were forced to go there because of inadequate supply,” Fashola stressed.
Speaking on the Dangote refinery fuel, which is expected to hit the pumps soon, Fashola said marketers would monitor the situation till Friday.
“We are watching the development. We are monitoring it; we will wait, maybe by Friday we will know where we are going by the time the Federal Government makes a pronouncement as regards the price. There is no official communication yet.”
An official from the Independent Petroleum Marketers Association of Nigeria (IPMAN) has attributed the fluctuating fuel prices to the Nigerian National Petroleum Corporation’s (NNPC) inability to regulate prices for other operators in the sector.
The official explained that each filling station is setting its own prices based on their individual preferences, as the NNPC’s pricing policies only apply to its own retail outlets.
“You know, NNPC cannot fix the price for us. They fixed the price for their stations; they are now a limited company. They have their retail outlets. That new price is their internal arrangement. So, we are yet to have an ex-depot price or marketer’s price,” he explained.
While believing that the new arrangement will close the price disparity between major and independent marketers, Fashola reiterated that at N855 per litre, the NNPC was still paying subsidy on petrol.
“I believe the price disparity gap will be closed somehow now. That is our belief. The truth is that, with the N855 in Lagos, and the landing cost of petrol, there are still some elements of subsidy. If the NNPC claimed that they are selling at half the cost of the landing price at N568/litre, it means the landing cost should be around N1, 200/litre. If they are selling a litre of petrol at N855/litre, there are still some elements of subsidy,” he added.
He said the association was expecting the details of the arrangement between Dangote and the government on the supply of PMS, especially as Aliko Dangote announced that the NNPC would fix the price.
“For now, we don’t have the details; it’s only Dangote who made the announcement that NNPC would fix the price. So, it’s in two ways. Maybe NNPC wants to act as an off-taker for the Dangote refinery, and they will now start distributing on behalf of Dangote to the marketers. There are a lot of things involved in this Dangote naira-to-naira transaction. There must be something that’s a factor. Maybe that will bring the price to a reasonable level, I don’t know. It may not be called a subsidy, maybe an in-house arrangement.
“If Dangote is buying naira-to-naira, there must be some little difference in terms of cost. It might be so small, but I believe there must be a difference. They know what they are doing, we are waiting for them to come out and we will react,” Fshola noted.
NNPC spokesperson, Olufemi Soneye, did not reply to calls or messages from our correspondent on the matter.
Reports indicate that the ongoing fuel crisis, which has persisted for two months, worsened significantly on Wednesday following a price increase. Numerous filling stations took advantage of the situation by extorting desperate customers in need of fuel for their vehicles, generators, and other equipment.
In Lagos and along the Lagos-Ibadan Expressway, some stations were selling petrol at exorbitant prices ranging from N900 to N1,200 per liter, as fuel queues grew longer in Nigeria’s commercial capital.
Residents in border communities with Ogun State reported purchasing PMS at a staggering N1,600 per liter from black marketers, claiming that petrol supply had been restricted to these areas.
While the NNPC denied implementing a price increase on Tuesday, all of its retail stations have adopted the new pricing, leaving Nigerians confused and unsure who to trust.
Commuters were stranded as there were a few commercial buses on the road to convey passengers. The drivers conveyed only commuters who were ready to pay more for transport fares, blaming the rise in fares on the high cost of fuel
Three Vessels Arrive at Apapa Depot to Discharge Petrol
Reports indicate that three vessels carrying petrol arrived at the Apapa depot in Lagos on Wednesday. Multiple sources confirmed that fuel loading activities improved significantly on Wednesday compared to the previous day, when marketers had stayed away.
“Loading is picking up slowly. It is far better than yesterday (Tuesday),” a source said.
Another depot operator, who spoke on condition of anonymity because he was not authorised to speak on the matter, said supply was ramped up by the NNPC, the sole importer of petrol.
“Supply is good today (Wednesday). Three PMS-laden vessels are in Apapa jetty now as we speak. Two of them are already discharging the product,” the depot official said.
It was gathered that the NNPC was making efforts to sell its old stocks before starting its transaction with Dangote refinery.
While unveiling its PMS on Tuesday, Dangote announced that the product would hit the market in 48 hours, adding, however, that this was subject to the readiness of the Federal Government and the NNPC.
Nigerians are eager to know whether or not the Dangote refinery could crash the price of PMS.
TUC Condemns Fuel Price Hike, Demands Reversal
The Trade Union Congress of Nigeria (TUC) has strongly criticized the recent increase in petrol pump prices, calling for its immediate reversal by the Federal Government.
In a statement issued by its president, Festus Osifo, the TUC expressed deep concern that the sudden rise in fuel and electricity costs would further exacerbate poverty levels, intensify suffering across the country, and potentially lead to social unrest.
The statement read, “TUC received the news of PMS Price hike with great contestation and grave concern. The burden of PMS price increase is huge and percolates all facet of our social-economic life.
“This sudden hike, implemented without consultation with critical stakeholders, represents a blatant disregard for the welfare of the Nigerian people, particularly the working class who bear the brunt of such decisions.
“The disturbing news of the increase in PMS pump price all over the country has sent a wave of apprehension and depression across the length and breadth of the nation.
“This is in the wake of an already existing unprecedented hardship upon citizens.
“In addition, we are deeply troubled by the further hike in electricity tariffs to 250 percent a service that is essential for the survival of the poorest in our society. The timing and magnitude of these increases, in the absence of any meaningful social security measures, demonstrate a lack of empathy and understanding of the challenges faced by ordinary Nigerians.”
It added, “Why does it have to be the common Nigerians bearing all the pains of high cost of living while those in power enjoy increased allocation and affluence?
“The government has not made any concerted efforts to reduce the cost of governance or personal effects, nor have they focused on directing resources or effecting policies that would strengthen the naira and improve the standard of living of our citizens.
“The Congress has long posited several strategies that should be activated towards improving the strength of the Naira and give value to every kobo spent by Nigerians as this is one of the root causes of all the economic woes we face as a country today. Yet much hasn’t been done about these recommendations.”
Also, the Nigeria Labour Congress on Wednesday responded to the denial by the Senior Special Assistant to President Bola Tinubu on Print Media, Abdulaziz Abdulaziz, regarding an agreement on minimum wage and fuel price hike.
The union described Abdulaziz’s denial as “amusing” and questioned his credibility, suggesting he might be suffering from “selective amnesia” or “attention span deficit.”
The Presidency on Wednesday accused NLC president, Joe Ajaero, of playing dirty politics following his declaration that the Tinubu administration betrayed the NLC by increasing the price of fuel despite a mutual agreement.
Speaking in a statement signed by Benson Upah, Head, Public Relations, NLC, the union reaffirmed its statement, challenging Abdulaziz to reveal the truth about the presidential meetings with labour leaders. They also criticized his personal attack on Joe Ajaero, stating that Nigerians don’t need Ajaero to recognize the harsh realities of life under the current government.
“The union emphasised that Nigerians deserve a decent life, free from harassment and starvation, and warned that “falsehood does not live forever.” They remain resolute in their stance, despite the government’s attempts to discredit them.
“Whatever the matter is with Abdulaziz, we stand by our statement. And if Abdulaziz was at those meetings as he claimed, he should be courageous enough to let the world know whether the President gave the labour leaders one hour to meet and resolve to either accept and allow increase or accept N62,000.
“Labour leaders instead chose to meet outside the Villa and report in a week. When they came back, they were blunt and rejected the offer.
“As for Abdulaziz’s side-dig, he should stop insulting the intelligence of Nigerians as they do not need Comrade Joe Ajaero to know they have been taken for a ride and that life has never been this mean, all due to the policies of government.
“We also find it necessary to let Abdulaziz and those who sent him know that Nigerians are entitled to a decent, respectable life free from harassment, intimidation and starvation.
“Government may have all the ultimate weapons of coercion, true power resides with the people. Finally, we are also acutely conscious of the fact that falsehood does not live forever.”
Protests Erupt, People Lament Over Fuel Scarcity and Price Hike
Commercial tricycle operators, women, and youths in Warri and Effurun, Delta State, staged peaceful protests on Wednesday to express their discontent over the persistent fuel scarcity and recent price increase.
Hundreds of market women and cyclists marched through the city’s main streets, demanding that President Bola Tinubu take immediate action to address the fuel crisis and reverse the price hike.
The protesters carried placards and chanted slogans expressing their frustration and anger over the government’s decision to increase fuel price to almost N1100/litre, which they say has worsened their economic struggles.
Some of the placards had inscriptions such as ‘Tinubu, intervene now to alleviate commuters sufferings’, ‘Tinubu, activate Warri, Kaduna refineries without further delay’, and ‘We are suffering in silence, the fuel price hike is a killer.’
One of our correspondents observed that most of the filling stations along the Warri-Sapele road were shut to motorists on Wednesday morning while the few that were open for business sold petrol at above N1,000.
Consequently, the development had adverse effects on commuters within the metropolis as well as inter-state travellers as motorists adjusted their transport fares upwards.
Residents Turn to Alternative Transportation Amidst Fuel Price Hike
In response to the recent increase in pump prices, many residents and workers, including civil servants in Borno State, have adopted alternative modes of transportation such as walking, tricycles, and bicycles.
On Wednesday morning in Maiduguri, the state capital, there was a noticeable decrease in vehicle traffic and an increase in pedestrians on major roads. Residents of Nasarawa State also expressed frustration over the price hike, which has forced many to rely on walking as a more affordable option due to the rising costs of tricycles and buses.
The product, which used to be sold between N930 and N950/litre in most stations in Lafia and its environs, is now sold between N990 and N1,000/litre.
In Lafia on Wednesday, reports gathered that many workers and businessmen trekked short distances to their workplaces to avoid spending outside their budgets.
Tricycles, motorcycles and vehicles operators in the state capital had jacked up their prices for both short and long distances due to the rising cost of fuel.
Tricycle riders in Lafia had fixed N250 for a drop per passenger but with the increase in price, the transporters jacked up their prices to between N350 and N400.
In Ilorin, the Kwara State capital, residents stayed indoors following the increase in fuel price.
There was a dearth of vehicles on the streets of Ilorin as a result of the increase in the price of PMS.
Many vehicle owners, who were caught unaware, angrily abandoned their cars at home or parked by the roadside to make use of commercial motorcycles and tricycles to their respective destinations.
A litre of petrol was sold at N870/litre at NNPC stations while independent marketers sold at between N950 and N1,200/litre.
However, commercial vehicle operators in Ilorin complained of low turnout by passengers.
Similarly, one of the leaders of IPMAN in the state, Alhaji Kunle Sanni, tasked the Presidency to halt what he described as “their flamboyant lifestyles” while masses were being pushed deeper into poverty.
The septuagenarian revealedthat it was regrettable that the Presidency was travelling around the globe in needless multi-billion Naira private jets while its citizens lived in penury.
He said, “There has to be a social service that any government must provide for her people but the present government hasn’t done anything in this regard. Instead all of them, the Presidency and National Assembly members, are living flamboyant lifestyles while the masses are suffering more and more.
“The former price of N580/litre was on a very high side, we complained bitterly against it and expected that Dangote product would give us a relief but here we are with another increase and all manner of sabotage stories about Dangote refinery. What kind of a government is this?” “I haven’t sold PMS for over three months now because of the increase because I can’t stand people’s curses on me for what I don’t know anything about.”
The recent fuel price hike has left hundreds of commuters stranded in Kaduna, as numerous filling stations have either closed their doors or are selling fuel at exorbitant prices.
On Wednesday, residents were forced to walk long distances or choose more expensive transportation options. Journalist Amos Mathew decided to park his car due to the increased fuel costs, opting instead to take a tricycle ride for N400, compared to the usual N100.
This article was written by Tamaraebiju Jide, a student at Elizade University
The Federal Government has imposed a state of emergency on Onne Port in Rivers State due to recurring incidents of dangerous cargo, such as arms and ammunition, being imported through the port.
In response to this crisis, the government has announced the immediate implementation of emergency protocols at Onne Port for the next three months. These measures include rigorous examinations of all suspicious containers within the port premises.
The Comptroller-General of Customs, Bashir Adeniyi, made this announcement during a press conference held on Wednesday in Eleme Local Government Area of Rivers State. The conference showcased seizures of illicit goods made by the Nigeria Customs Service, Area 2 command, Onne.
Adeniyi, has expressed deep concern over the recurring incidents of dangerous and illicit cargo being imported through Onne Port. Describing it as a disturbing trend, He warned that these activities pose a serious threat to national security.
The customs boss stated, “Earlier today, I joined numerous stakeholders to take a significant step towards the cause of trade facilitation through the inauguration of upgraded facilities provided by the West Africa Container Terminal, Onne.
“As I express delight that trade facilitation is getting traction in Onne Port, I cannot help but call your attention to a grave concern. This has to do with the repeated incidents of national security breaches unfolding in Onne Port. I appreciate your presence, as we all have a shared responsibility in safeguarding our national security.
“As we are all aware, the policy thrust of Mr President supports the re-energising of our business environment to drive faster import clearance and grow our capacity for exports, Our emphasis has been to promote initiatives that speak to Trade facilitation and economic development.
“It is a matter of regret that criminal elements in the international supply chain are exploiting our pro-trade stance to commit atrocities bordering on national security breaches.”
Continuing, he said, “The attempts to test our will through the importation of dangerous cargo through this port has necessitated the declaration of a state of emergency in Onne Port, coming on the heels of a seizure of a huge cache of arms a couple of months ago.
“It is disheartening that perpetrators have not backed down on their illegal acts. Recent intelligence and seizures have revealed a disturbing trend; Onne Port is increasingly being used as a destination for dangerous and illicit cargo. The scale and nature of these illegal importations pose a significant threat to our national security and the health of our citizens.
“Today, we are here to showcase yet another series of significant seizures made by the diligent officers of the Area 2 Command. On display are twelve containers of illicit goods intercepted through a combination of intelligence gathering, inter-agency collaboration, and meticulous physical examination.
“Seizures on Display: One (1) x 40-feet container: Containing 4,800 pairs of military/paramilitary camouflage rain boots and 67,320 pairs of various rubber footwear, with a Duty Paid Value (DPV) of N923,040,000. Three (3) x 40-feet containers: Containing 562,600 bottles of 100ml cough syrup with codeine and 3,150 pieces of chilly cutters, with a DPV of N4,716,573,846.”
Adeniyi further stated that three x 40-feet containers containing 380,000 bottles of 100ml cough syrup with codeine, 24,480,000 tablets of Royal Tramadol Hydrochloride, 5,350,000 tablets of Tapentadol and Carisoprodol, and other items, with a DPV of N17,432,506,000 were seized.
On other seized items, he said, “Five (5) x 40-feet containers; Containing 892,400 bottles s of 100ml cough syrup with codeine, 1,300,000 tablets of 50mg Really Extra Diclofenac, 7,250,000 tablets of 5mg Trodol Benzhexol, and other items, with a DPV of N8, 128,568,295,90.
“These interceptions bring the total Duty Paid Value of the 12 seized containers to a staggering N3I,200,688,142. This operation is not only a testament to the Area 2 Command’s vigilance but also to the effectiveness of our intelligence network and the critical partnerships we maintain with other security agencies.
“I want to emphasise that this is not just a Customs issue, it is a national security concern that affects every Nigerian. We are therefore calling on all patriotic citizens to assist us in this crucial endeavor. We need your help in providing intelligence regarding those behind these nefarious acts and their intentions.”
The Customs boss, while noting that information is essential in curbing what he termed ‘a potential catastrophe, he said, “Therefore, effective immediately, we are implementing emergency protocols at Onne Port.
“For the next three months, we will be conducting thorough examinations of all suspected containers. If the owners do not come forward for examination, we will open these containers to verify their contents. This is a temporary but necessary measure to clean up the port and restore its integrity.
“I want to assure the business community and legitimate importers that this measure is not aimed at disrupting lawful trade. Our goal is to create a safer, more secure environment for genuine business activities to thrive. We will work to ensure that lawful shipments are processed as quickly and efficiently as possible during this period.
“To those who may be tempted to continue these illegal activities, let me be clear: the Nigeria Customs Service, in collaboration with other security agencies, will bring the full weight of the law upon anyone found complicit in these crimes against our nation.”
He commended officers and men of the Onne Command for their dedication to duty and service to humanity.
Adeniyi said, “These seizures were made in strict compliance with customs laws, particularly concerning concealment, false declaration, and the importation of prohibited items.”
He further said, “The illegal pharmaceuticals, including cough syrup and tramadol, will be handed over to the National Drug Law Enforcement Agency in accordance with our Memorandum of Understanding, while the other items will be dealt with as per the legal frameworks governing our activities.
“As we move forward, I want to reiterate our commitment to continuing this momentum. The Nigeria Customs Service, under my leadership, will leave no stone unturned in our mission to protect the health and safety of Nigerians.
“We will strengthen our intelligence networks, enhance our inter-agency collaborations, and ensure that those who seek to harm our nation face the full weight of the law.”
He assured Nigerians that the NCS would continue to be a formidable force in the fight against smuggling and the illegal importation of harmful goods, saying, “We will remain steadfast in our duties to ensure that our nation remains a safe place for all to thrive.”
This article was written by Tamaraebiju Jide, a student at Elizade University
The Central Bank of Nigeria released the most recent Purchasing Manager’s Index (PMI) which indicates that economic activities grew in August for the first time in 13 months.
According to the PMI published by the CBN on Wednesday, the combined PMI for August 2024 reached 50.2 index points, signaling an expansion in economic activities following 13 consecutive months of contraction.
“The sectoral breakdown shows that the services sector recorded expansion for the third consecutive month, while the agricultural sector registered expansion for the first month. The industry sector, though contracted, registered a slower contraction when compared to the level recorded in the previous month.
“Among the 36 subsectors reviewed across the industry, services and agriculture sectors, 17 subsectors reported growth with primary metal reporting the highest growth during the review month, while the remaining 19 subsectors registered a decline with forestry reporting the highest decline.
“Output, new orders and stock of raw materials at 50.8, 50.5 and 51.3 points, respectively indicated growth. Suppliers’ Delivery Time is Stationary at 50.0 points, while Employment at 48.7 points registered a decline in August 2024,” the report stated.
The CBN said the August PMI survey was conducted from August 12 to 16, adding that the survey respondents were the company’s Purchasing and Supply Executives, drawn from the three sectors of the economy, namely: industry, services, and agriculture.
The Central Bank of Nigeria (CBN) has provided details about the methodology used in its recent Purchasing Managers’ Index (PMI) survey for August 2024. They mentioned the survey was conducted between August 12 and 16, gathering responses from Purchasing and Supply Executives across the industrial, services, and agriculture sectors.
The PMI is calculated based on respondents’ assessments of changes in various aspects of their business activities. An index value above 50.0 indicates expansion in business activities, while a value below 50.0 suggests contraction.
An index of 50.0 indicates a no-change situation.
A closer look at the composite Employment index showed that at 48.7 index points in August, the contraction in employment level continued for the eighth consecutive month.
“This index when compared to the level in July 2024, remained unchanged, indicating no significant change in employment during the period. 19 subsectors reported a contraction in employment level, with transportation equipment and forestry subsectors recording the highest decline in the review month. Six subsectors remained unchanged, while the remaining 11 subsectors reported increased Employment Levels with the Electrical Equipment subsector having the highest Employment index,” said the report.
The Central Bank of Nigeria (CBN) announced in August the reinstatement of several critical economic reports, including the Purchasing Managers’ Index (PMI), Business Expectation Survey, and Inflation Expectation Report.
In a statement issued by the Acting Director of Corporate Communications, Hakama Ali, the CBN emphasized the significance of these reports in providing stakeholders with timely and accurate information about Nigeria’s economic performance. These reports offer valuable insights into the country’s economic climate and facilitate a better understanding of its overall economic health.
This article was written by Tamaraebiju Jide, a student at Elizade University
The Trade Union Congress of Nigeria (TUC) has stated that the recent increase in the pump price of Premium Motor Spirit (PMS) will worsen the country’s worker poverty rate. Mr Festus Osifo, President of the TUC, made the declaration on Wednesday in Abuja.
According to Osifo, the union’s leadership was shocked and concerned when they learned of the PMS price jump. According to him, the impact of PMS price increases is enormous and pervades every aspect of our social and economic lives.
“This rapid increase, done without consultation with crucial stakeholders, demonstrates a flagrant disdain for the welfare of Nigerians, particularly the working class, which bears the brunt of such choices.
“The disturbing news of the increase in PMS pump price all over the country has sent a wave of apprehension and depression across the length and breathe of the nation.
“This is in the wake of an already existing unprecedented hardship upon citizens,”he said.
He also said that the Congress was deeply troubled by the further hike in electricity tariffs by 250 per cent, saying electricity was essential for the survival of the poorest in the society. Osifo faulted the timing and magnitude of the increases.
“Why does it have to be the common Nigerians bearing all the pains of high cost of living while those in power enjoy increased allocation and affluence?”,he said.
He stated that the Congress has long proposed many measures to strengthen the Naira and provide value for every kobo spent by Nigerians. Osifo stated that the country’s economic issues were rooted in the weak naira.
He stated that the TUC stands with Nigeria’s working people, who are struggling under the weight of growing inflation and a high cost of living.
Osifo also stated that the abrupt increase in fuel and energy rates would worsen these issues, resulting in additional hardship and potential social upheaval.
“We urge the government to immediately rescind these decisions, promote policies that will strengthens the naira and take decisive steps to alleviate the suffering of Nigerians.
“The government must act swiftly to restore confidence and prevent further deterioration in the living conditions of its citizens.
“The Trade Union Congress of Nigeria remains committed to defending the rights and interests of Nigerian workers and will continue to advocate for policies that promote social justice, fair wages, and a decent work environment, he said.
The Nigerian stock market fell by N193 billion on Wednesday, reversing prior advances. Selloffs in Tier-one banking companies, including Zenith Bank, Access Corporation, Guaranty Trust Holding Company (GTCO), and other declining shares, were the key drivers of the market’s relapse.
The Nigerian Exchange Ltd. (NGX) market capitalisation, which opened at N55.647 trillion, fell by N193 billion, or 0.35 percent, to N55.454 trillion. The All-Share Index fell 0.35 percent, or 336.3 points, to 96,537.48 points, down from Tuesday’s high of 96,873.74.
As a result, the year-to-date (YTD) return declined by 29.11%. In addition, market breadth closed negative, with 33 losers and 21 gainers on the exchange floor.
On the losers’ chart, Oando led by 10 percent to close at N81.90, and The Initiative Plc trailed by 9.95 percent to close at N1.81 per share. RT Briscoe lost 9.72 percent to close at N2.60, Secure Electronic Technology Plc declined by 9.23 percent to close at 59k, while Omatek shed 9.09 percent to close at 70k per share.
On the losers’ side, Daar Communications led by 10 percent to close at 66k, and Industrial Medical Gas followed with 9.72 percent to close at N35 per share.
Deap Capital Management and Trust Plc advanced by 9.52 percent to close at N1.15, Tantalizers rose by 8.47 percent to close at 64k, and Caverton added 6.82 percent to close at N1.41 per share.
Analysis of the market activities indicated that trade turnover settled lower relative to the previous session, with the value of transactions down by 21.43 percent.
Investors exchanged 389.23 million shares valued at N8.18 billion in 12,039 deals, compared to 473 million shares valued at N10.41 billion traded in 12,532 deals recorded previously.
Meanwhile, Oando led the activity chart in volume and value with 37.18 million shares worth N3.10 billion; Universal Insurance followed with 33.71 million shares valued at N12.66 million.
Transnational Corporation also sold 29.02 million shares valued at N321.76 million; FTN Cocoa traded 22.74 million worth N35.14 million; and GTCO transacted 21.95 million shares worth N1.01 billion.
On Wednesday, the Securities and Exchange Commission (SEC) said that it just granted approval-in-principle to two cryptocurrency exchanges in order to provide Nigerian youngsters with capital market participation opportunities.
On Thursday, the SEC awarded Busha Digital Ltd. and Quidax Technologies Ltd. “approval-in-principle” to begin operations under the Accelerated Regulatory Incubation Program (ARIP).
Dr. Emomotimi Agama, Director General of SEC, provided clarification in a statement issued in Lagos. According to Agama, in order to meet President Bola Tinubu’s aim to interact with youngsters, it became necessary to establish a framework that would increase their participation, as well as that of other Nigerians, in the market.
“It is important that we act accordingly. We can not be left out of the global phenomenon that is beginning to take shape. “SEC, as a future-looking institution, is poised to making sure that we are in the league of countries that do what is needed.
“As much as possible, we are building talents to be able to deal with the challenges that these asset classes could bring to our shores. “A lot of young Nigerians are fully involved in cryptocurrencies and we cannot shut the door against them; rather, the intention of the president is to have them included in the capital market.
“That is why SEC is ensuring that there is regulation and no one is hurt at the end of the day, which is part of our responsibility to protect investors and develop the market,”he said.
According to Agama, the commission is doing all of these cautiously to ensure that these institutions do not pose risks to the national economy and to citizens who invested in them.
He disclosed that SEC’s program on the digital asset exchanges emerged from its Virtual Assets Service Providers Regulation in view of the nature of crypto exchanges and the entire industry. The director-general noted that it was important to outline a regulation that allowed the commission to fully understand crypto exchanges and virtual financial asset service providers.
He explained that the notion arose from the SEC’s original Regulatory Incubation Programme, which sought to research emerging fintech platforms and products on the market. Agama stated that this was done to enable the measurement of the risks associated with these institutions and their products. He emphasized that the commission had not yet issued an outright license for any exchange but had given its support in principle.
He stated that the approval was issued as part of a controlled experiment in which companies that have applied and meet the fit and appropriate persons test and other regulatory standards are asked to participate in regulatory incubation.
“It gives us an opportunity to know exactly what they are doing, the risks that they pose to our economy, investors, and to themselves as operators.
“The idea is, you need to do that to be able to study them and provide all the guidance and regulations required by them to operate in the system seamlessly while also not defrauding Nigerians.
“We are making sure that they operate within regulations similar to what is obtainable in other jurisdictions, he said.
France Football, the organizers of the Ballon d’Or honors, has announced the nominees for this year’s edition. The list includes expected names such as Erling Haaland (Manchester City), Vinicius Jr. (Real Madrid), Jude Bellingham (Real Madrid), and Kylian Mbappe (PSG/Real Madrid).
Vinicius Jr. is thought to be the hot favorite to win the prize. Lionel Messi of Inter Miami, the current holder and eight-time champion, does not make the cut.
Dangote Refinery, a large industrial project in Nigeria, is transforming the country’s fuel landscape. This ambitious effort, led by billionaire industrialist Aliko Dangote, has started to supply a large amount of Nigeria’s domestic fuel consumption while reducing the country’s dependency on imported petroleum products.
But how will this affect the common Nigerian? Let’s look at the top seven ways Dangote refinery petrol output will benefit Nigerians.
1. Reduced Fuel Costs
One of the most immediate and significant benefits of the Dangote refinery is the potential reduction in fuel prices. Currently, Nigeria imports a substantial amount of its fuel, making it vulnerable to global price fluctuations. By producing fuel domestically, the country can reduce its dependence on foreign suppliers and potentially negotiate better terms. This could lead to lower fuel costs for consumers, alleviating the burden on households and businesses.
2. Improved Fuel Quality
Another advantage of the Dangote refinery is the prospect of improved fuel quality. The refinery is designed to produce high-quality petrol and diesel that meet international standards. This could lead to better performance for vehicles, reduced maintenance costs, and fewer environmental issues associated with low-quality fuels.
3. Job Creation
The operation of the Dangote refinery is expected to create a significant number of jobs. From construction workers to refinery operators and support staff, the project will provide employment opportunities for thousands of Nigerians. This will not only boost the local economy but also contribute to reducing unemployment rates, particularly in the region where the refinery is located.
4. Increased Domestic Fuel Supply
The Dangote refinery will increase the domestic supply of fuel, reducing the need for imports. This will help to ensure that the country has a more reliable and stable supply of fuel, reducing the risk of shortages and fuel queues. It will also strengthen Nigeria’s energy security and reduce its vulnerability to external shocks.
5. Foreign Exchange Savings
By reducing Nigeria’s reliance on imported fuel, the Dangote refinery will save the country valuable foreign exchange. The billions of dollars currently spent on fuel imports can be redirected towards other sectors of the economy, such as infrastructure development, education, and healthcare. This will help to strengthen the Nigerian economy and improve the standard of living for its citizens.
6. Dangote Refinery Industrial Growth
The availability of a reliable and affordable supply of fuel will be a boon to Nigeria’s industrial sector. Many industries, such as manufacturing, transportation, and agriculture, rely heavily on fuel. By reducing the cost and improving the quality of fuel, the Dangote refinery will help to create a more conducive environment for industrial growth and development.
7. Economic Diversification
The Dangote refinery is a significant step towards diversifying Nigeria’s economy. Traditionally, the country has been heavily reliant on the oil and gas sector. By developing a domestic fuel industry, Nigeria can reduce its dependence on a single commodity and create new economic opportunities. This will help to make the economy more resilient to global shocks and promote sustainable development.
Conclusion
The Dangote refinery is a monumental project with the potential to transform Nigeria’s fuel landscape. By reducing fuel costs, improving fuel quality, creating jobs, and boosting the economy, the refinery will have a positive impact on the lives of millions of Nigerians. As the refinery continues to ramp up production, it is expected to deliver significant benefits to the country for years to come.
The recent surge in fuel price to a staggering N897 per liter has sent shockwaves through the Nigerian nation. This unprecedented hike has had a ripple effect on virtually every aspect of our lives, from transportation to food prices.
As Nigerians, we are faced with a daunting challenge—how to navigate this economic storm and ensure our survival. This article offers practical tips and strategies to help you weather the fuel crisis and maintain a decent standard of living.
1. Prioritize Your Budget
Track your expenses: Keep a detailed record of your daily spending to identify areas where you can cut back.
Create a budget: Allocate a specific amount for essential expenses like food, transportation, and utilities.
Reduce non-essential spending: Limit unnecessary purchases and avoid impulse buying.
2. Optimize Your Transportation
Carpool: Share rides with friends, colleagues, or neighbors to reduce fuel consumption.
Use public transportation: Consider taking buses, trains, or other public modes of transportation whenever possible.
Walk or bike: For short distances, opt for walking or cycling to save on fuel costs.
3. Cook at Home More Often
Prepare meals: Cooking at home is generally cheaper than eating out and allows you to control the ingredients and portion sizes.
Buy in bulk: Purchase groceries in larger quantities to get better deals and reduce the frequency of shopping trips.
Plan your meals: Create a weekly meal plan to avoid food waste and minimize impulse purchases.
4. Reduce Energy Consumption
Unplug electronics: Turn off devices when not in use to conserve electricity.
Use energy-efficient appliances: Invest in energy-saving appliances like LED bulbs and efficient refrigerators.
Adjust your thermostat: Lower your thermostat during the cooler months and raise it during the warmer months.
5. Explore Alternative Income Sources
Freelancing: Utilize your skills to earn extra income by working from home.
Part-time jobs: Look for part-time employment opportunities to supplement your income.
Start a small business: Consider starting a small business that aligns with your interests and skills.
6. Leverage Technology
Online shopping: Compare prices and find deals online to save money on purchases.
Remote work: If your job allows, work remotely to reduce commuting costs.
Online learning: Take advantage of online courses to acquire new skills and enhance your job prospects.
7. Support Local Businesses
Buy local: Patronize local businesses to boost the economy and support your community.
Shop at farmers’ markets: Purchase fresh produce and other goods directly from farmers to get better prices.
8. Stay Informed and Engaged
Follow the news: Stay updated on the latest developments regarding fuel prices and government policies.
Support advocacy groups: donate to or volunteer with organizations working to address the fuel crisis.
Fuel Price Conclusion
The fuel crisis presents significant challenges for Nigerians, but by adopting these strategies, we can mitigate its impact on our lives. By prioritizing our budgets, optimizing our transportation, reducing energy consumption, and exploring alternative income sources, we can navigate this difficult period and emerge stronger.
Remember, collective action and resilience are key to overcoming adversity. Let us unite as a nation and work together to build a brighter future for ourselves and generations to come.
Nigeria’s Labor Congress (NLC) has ordered immediate rollback of the new increase in petrol prices across the country. This was made through a statement issued by Mr Joe Ajaero, its president, on Tuesday in Abuja.
NLC President Joe Ajaero, in the statement, expressed great disapproval and betrayal over the decision to raise pump prices to between N855 and N897 per liter.
The Nigerian National Petroleum Corporation Limited (NNPCL) allegedly instructed an increase in petrol pump prices, on Tuesday, raising them from between N568 and N617 per litre to between N855 and N897 per litre. Ajaero, discussing about the turn of event, said the Congress felt a deep sense of betrayal by the increase in the pump price of petrol.
Despite the company denying that it issued such a directive, checks at NNPCL retail stations in Abuja confirmed the new price of N897 per litre. In response to this development, Ajaero expressed that the Congress felt a profound sense of betrayal regarding the rise in petrol prices.
Ajaero reminded the government that one of the key factors that led to the acceptance of the N70,000 national minimum wage was the assurance that fuel prices would remain stable, even though they knew that N70,000 was not enough.
The labour leader recalled their meeting with President Bola Tinubu, where they were given the options of either N250,000 minimum wage and a rise of pump price between N1,500 and N2,000 or N70,000 minimum wage and retaining pump price of N568 – N617 per litre.
“We opted for the latter because we could not bring ourselves to accept further punishment on Nigerians.
“But here we are, barely one month after and with government yet to commence payment of the new national minimum wage, confronted by a reality we cannot explain. It is both traumatic and nightmarish.
“Yet, when we told government that it’s approach to resolving the fuel subsidy contradictions was patently faulty and would not last, it’s front row cheer leaders sneered at us, saying we did not understand basic economics .
“But if truth be told, this act of betrayal is consistent,’” he said. Ajaero also recalled the assurances given to the Congress by the leadership of the National Assembly on the reversal of 250 percent electricity tariff hike.
He said, instead of the promised reversal, the rate has since been jerked up further, putting more Nigerians and businesses in jeopardy.
The union has also demanded the release of all those who have been arrested or prosecuted for participating in the #EndBadGovernance protests.
Additionally, Ajaero said the NLC has called for an end to the indiscriminate arrest and detention of citizens on false charges. “The Congress demands a stop to the hijacking of the duties of the Ministry of Labour and Employment.
“We also demand an end to policies that engender hunger and insecurity, as well as a halt to the government’s culture of terror, fear, and lying,” he said. Ajaero said in the coming days, the appropriate organs of the Congress would be meeting to take appropriate decisions, which would be made public.
This article was written by Tamaraebiju Jide, a student at Elizade University
The Ministry of Power, had on Monday, revealed that Nigeria’s power generation reached a three-year high of 5,313 megawatts.
This information was shared in a statement by Mr. Bolaji Tunji, the Special Adviser on Strategic Communication and Media Relations to the Minister of Power, Mr. Adebayo Adelabu.
Adelabu also encouraged Electricity Distribution Companies (DisCos) to increase their energy intake to prevent a potential grid collapse.
”When power is produced and not picked by the DisCos, it could lead to grid collapse as frequency drops..
”Efforts will be made to encourage industries to purchase bulk energy,” he said.
Adelabu, lisiting his achievements during his ministerial address in Abuja mentioned that the country’s power generation had reached 5,000 megawatts on May 3, that was since the assumption of President Bola Tinubu into office on May 29, 2023.
He further said that he was confident that it would reach 6,000 megawatts by the end of the year. This is due to the improvements that have been made in the power sector in 2023.
This article was written by Tamaraebiju Jide, a student at Elizade University
President Bola Tinubu’s administration has launched a new initiative to reduce Nigeria’s reliance on petrol and diesel. As part of this effort, 20 compressed natural gas (CNG)-powered buses were recently delivered to Lagos.
On Tuesday, the buses were handed over to the Oniru of Iru, Oba Abdulwasiu Omogbbolahan, on behalf of the Iru Land Transport Company Limited.
The Presidential Compressed Natural Gas Initiative (PCNGi) director, Oluwagbemi Michael, emphasized the government’s commitment to ensuring availability of CNG filling stations throughout the country. He also highlighted that the buses being delivered were locally produced and that more would be procured in the future for the people’s use.
However, he emphasised that the beneficiaries of the buses would pay the cost over time and that the money would be used to get more buses for others.
“Yes, we are providing these buses. They were purchased by the Federal Ministry of Finance under the palliative programme. They are becoming available because they are being assembled and manufactured here in Nigeria. As everybody has been asking, where are the buses?
“Those buses were under manufacturing. And so, immediately, some became available as a result of testing. If you go to those buses, you will see the testing logo. Once the testing is done, we start rolling out, as we promised.
“So, yesterday, we did the first one in Ibadan. Today, we are in Lagos. Very soon, we are going to the Federal Capital Territory as well as Ilorin. These will be the first four cities,” he stated.
Oluagbemi stressed that more cities would benefit from the CNG bus programme, stating that 531 buses will be made available to commercial drivers in the first phase.
“We are expecting, under the first phase of the procurement by the Federal Minister of Finance, 531 buses.
“They are available on a partnership basis with these transport operators, as promised by Mr President. The money that is used to purchase them will be recovered over a period of time steadily, from the fares that the passengers will be paying to ensure that we can acquire more, and more will be available to Nigerian people,” he stated.
The Oniru expressed gratitude to President Tinubu and the Federal Government for including his kingdom in the initiative. He promised the government of the community’s support, stating that the initiative would significantly enhance the economy of Iruland, particularly in terms of job creation.
This article was written by Tamaraebiju Jide, a student at Elizade University
Oil prices plummeted dramatically on the global commodities market, and this pressure persisted into early morning trade today. ICE Brent declined roughly 4.9% on the day, falling below US$74 per barrel, according to ING commodities strategists in a note released Wednesday.
Analysts believe the sell-off was spurred by a larger risk-off trend, which also put pressure on equities. Brent crude slipped 1% to $72.75 a barrel, up from the previous session’s close of $73.50. The US benchmark West Texas Intermediate (WTI) fell 1.1% to $68.99 a barrel, after closing at $69.78 the previous session.
The possibility of restoring Libyan supply would have just heightened the pressure. The head of the Libyan National Bank has claimed that the western and eastern governments in the country are close to coming to a deal which should see oil production returning to normal levels.
The market is also bracing itself for the gradual return of OPEC+ supply in October, at a time when there is plenty of concern over demand weakness. The further pressure on prices, the more likely it is that OPEC+ will be forced to scrap plans to bring supply back onto the market.
However, with the balance looking soft through 2025, ING commodities strategists said the question is when the group will eventually be able to bring supply back onto the market without putting significant pressure on prices.
Oil prices are moving downward amid rising expectations that the decision to suspend oil production in Libya could be reversed. The UN Support Mission in Libya (UNSMIL) said it hosted separate talks on Monday in Tripoli to resolve a crisis surrounding the Central Bank of Libya.
The discussions were concluded with ‘significant understanding’ to address the crisis and restore the confidence of Libyans and international partners in the vital institution.
‘They further agreed to submit the draft agreement to their respective chambers for review, with the aim of finalizing and signing the agreement on Tuesday,’ UNSMIL added. These compromises have eased market players’ concerns about possible supply shortages, putting downward pressure on oil prices.
Meanwhile, macroeconomic data released in the US on Tuesday supported the predictions that the world’s largest oil-consuming country could go into recession and cause prices to decline. The US Institute of Supply Management’s (ISM) Manufacturing Purchasing Managers Index (PMI) rose to 47.2 in August but remained below market expectations. S&P Global’s manufacturing PMI came in at 47.9 in August, slightly below estimates.
After the PMI data, which indicated the continuous contraction in the manufacturing sector, the US 10-year Treasury bond yield fell 4.83%, down 9 basis points. On the other hand, ongoing conflicts in the Red Sea, a major route for oil and fuel shipments, limit further price decreases by heightening concerns about supply disruptions.
Yemen’s Houthi group said Monday that it targeted an oil tanker in the Red Sea with drones and missiles for breaching its embargo on vessels entering Israeli ports.
The Houthis have been targeting Israeli-linked cargo ships in the Red Sea and Gulf of Aden in solidarity with the Gaza Strip, which has been under an Israeli onslaught since Oct. 7 last year.
The Nigerian Consumer Credit Corporation (NCCC) has officially launched the distribution of President Bola Tinubu’s consumer credit scheme to economically active Nigerians nationwide. The scheme is being implemented through participating financial institutions across the country.
Uzoma Nwagba, the Chief Executive Officer of CREDICORP, announced a partnership with Credit Direct to significantly expand access to consumer credit at the signing ceremony on Tuesday. The initial focus of this partnership is on civil servants nationwide, with the goal of reaching 500,000 individuals.
Nwagba disclosed that Credit Direct, the largest lender to civil servants in Nigeria and a subsidiary of FCMB Group, is a key player in this first wave of institutions involved.
Nwagba revealed that Credit Direct, a subsidiary of FCMB Group and the largest lender to civil servants in Nigeria, is a key player in this first wave of institutions involved in the scheme.
He further revealed that CREDICORP, from September, would kick off and offer discounted direct consumer credit to over 15,000 civil servants per round.
“Starting from September 3, 2024, civil servants will access loans at the lowest interest rates on the market. Applicants can access a wide range, and up to N3.5m, depending on their income and need,” she stated.
Nwagba noted that the initiative is part of a much broader effort to support the well-being of Nigerians, which aligns with CREDICORP’s mission to accelerate consumer credit access to 50 per cent of economically active Nigerians by 2030.
He noted that civil servants on IPPIS can now benefit from exclusive offers with reduced interest rates and flexible repayment plans for the purchase of domestic goods, mobility, medical care, and other household needs.
Aligning with CREDICORP’s mission to increase consumer credit access to 50% of economically active Nigerians by 2030, Nwagba emphasized that this initiative is part of a broader effort to improve the lives of Nigerians.
The company is offering exclusive benefits to civil servants on the Integrated Payroll and Personnel Information System (IPPIS). These benefits include reduced interest rates and flexible repayment plans for the purchase of domestic goods, mobility, medical care, and other household necessities.
Nwagba, said, “We are excited to partner with Credit Direct to kick off President Tinubu’s consumer credit scheme with civil servants as Mr President had promised.
“By going through Credit Direct today, and subsequently our other financial institutions coming on stream in the next days and weeks as we target 500,000 civil servants, they can access instant and affordable credit to cushion economic shocks or afford consumer goods to improve the quality of their lives.”
“This is just the start of a long and exciting journey with many parts, and linkages that ultimately catalyse local industries as we expand consumption,” Nwagba added.
Chukwuma Nwanze,the Chief Executive Officer of Credit Direct, highlighted the importance of partnership in fostering financial inclusion, in his own way.
Nwanze said, “Our civil servants are vital to the nation’s growth and stability, and we are committed to supporting them with accessible credit facilities. This partnership with CREDICORP allows us to extend our services to more individuals, ensuring that all civil servants can access the funds they need quickly and easily, up to N3.5m depending on their income and need.”
“Over the past 17 years, Credit Direct has positively impacted the lives of millions of customers across Nigeria. With a presence in all 36 states, including the Federal Capital Territory, through branches and digital channels, we continue to serve working-class Nigerians nationwide.”
This article was written by Tamaraebiju Jide, a student at Elizade University
In the secondary market, the average yield on the Federal Government of Nigeria (FGN) bond fell somewhat due to a tight supply of the debt asset. Investors are positive on the naira following recent economic progress and hopes that inflation will continue to fall in 20224.
According to Bizwatch Nigeria, the Debt Management Office (DMO) is preparing for its monthly primary market auction, in which it expects to offer extra securities to investors in September.
During the primary market auction, Nigeria’s debt office issued N190 billion in FGN bonds. The amount was substantially lower than the N300 billion lot size forecast across conventional maturities. According to fixed income analysts, this signals a drop in the volume of bond supply.
The lower supply expectation has however triggered decision to purchase government borrowing securities in the secondary market in line with investors’ portfolio plans. The changing market narrative has been reflecting on transaction conducted in the fixed income market.
In the secondary market, trading activities was relatively quiet with pocket of transactions that plunged FGN bond benchmark yield downward. Due to thin trading session albeit with bullish tilt, the average yield declining by 1bp to settle at 18.77%.
Fixed interest securities investors showed buying interest in the APR-29 (-21bps) paper, resulting in average yield at the short end of the curve, declining by 2bps, CardinalStone Securities Limited said in a note.
In August, the local bond market was not left out in the bullish frenzy, according to AIICO Capital Limited report. In addition to the robust system liquidity, the lower headline inflation fostered the expectation for a dovish bond auction.
Eventually, the bond auction was mixed, with only the 5-year paper (April 2029) closing higher at 20.30% (+41bps) compared to the previous auction, while the Feb 2031 and May 2033 papers closed lower at 20.90% (-10bps) and 21.50% (-48bps), respectively.
“Considering all pointers like system liquidity, bond coupon, lower inflation, and lower government borrowing costs, the bullish sentiment should spill into September,” AIICO Capital Limited said.
The average price of Nigerian Treasury bills fell in the secondary market ahead of the primary market auction (PMA), as investors raised their position in anticipation of lower spot rates on standard offers.
Due to speculation that the monetary authority will alter spot rates across standard maturities at the primary market auction, fixed income asset traders increased their secondary market purchases of Treasury bills.
The market witnessed the average mid-rate plummet due to low demand in bills across the short, belly, and long tenors. The average yield fell by 19 basis points to 20.9% in the market. The Central Bank of Nigeria (CBN) is set to hold a main market auction midweek.
Investment banking firms revealed in their separate notes that the CBN would be offering T-bills worth N233.31 billion to investors in the primary market auction today. Mirroring the current mood, analysts projected that spot rates could drop as they were with the OMO auction.
The Nigeria’s Debt Management Office (DMO) that is going to conduct the auction on behalf of the CBN has been unwilling to increase rates as part of efforts to reduce government borrowing costs.
Analysts said rates have been slowing down, reversing the previous trend with the hope that disinflation condition will be sustained throughout the remaining part of the year. They anchored their expectation on elevated yield in the market and recent inflation rate slowdown which has reduce negative interest yield in the fixed interest securities market.
In a note, Cordros Capital Limited said the average yield declined at the short (-1bp), mid (-1bps), and long (-39bps) segments. The yield contraction was driven by demand for the 65-day to maturity (-1bp), 156-day to maturity (-2bps), and 233-day to maturity (-270bps) bills, respectively.
Meanwhile, the average yield pared by 1 bp to 22.8% in the OMO bill segment after the primary market auction earlier in the week.
“We expect the outcome of the Treasury bills auction and liquidity to impact the market,” AIICO Capital Limited said in a note. On Tuesday, the Nigerian Interbank Treasury Bills True Yield (NITTY) trended downward across all maturities.
Sen. Heineken Lokpobiri, Minister of State Fuel Resources (Oil), has stated that there was no direction issued to the Nigerian National Petroleum Company Limited (NNPC Ltd.) to raise fuel prices to N1,000.
Lokpobiri, in a statement published on Tuesday by his Special Adviser, Media and Communication, Nnemaka Okafor, stated that he did not ask NNPC Ltd. or any other firm in the sector to manipulate prices.
“The Federal Government has been compelled to address the outright falsehood and malicious claims currently circulating on social media.
“We categorically condemn these claims as baseless, malicious, and a deliberate attempt to incite public discontent.
“We challenge anyone in possession of any evidence—be it written documents, audio, or video recordings—that supports these fabrications to make it public.
“Such a claim is entirely devoid of truth and should be recognised as an intentional effort to mislead the public,” he said.
He stated that NNPC Ltd. functions as an autonomous corporation under the Companies and Allied Matters Act (CAMA), with a fully authorized Board of Directors, and that the Ministry of Petroleum Resources does not and will not interfere with NNPC Ltd.’s internal decisions, including pricing.
“Any suggestion otherwise is not only incorrect but also reveals a profound misunderstanding of the deregulated nature of Nigeria’s petroleum sector,” he said.
He advised the public to dismiss these malicious rumors. “Any claim to the contrary is nothing more than an ill-conceived attempt to sow discord and confusion.
“We urge all Nigerians to remain vigilant and rely solely on information from verified and official channels,” he said.
The News Agency reports that as of Tuesday, the NNPC Ltd. Retail Stations adjusted their pump price, selling at N897 while independent marketers are selling between N930 and N1,000.
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