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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.

Promissory Notes, a form of debt where the government commits in writing to repay a specified amount, have become a key tool for meeting financial obligations amid cash flow challenges. This sharp rise highlights the government’s growing dependence on Promissory Notes to fulfill its commitments.

Key Takeaways from DMO’s Report

The DMO’s half-year public debt report for 2024 reveals that Nigeria’s total domestic and foreign debt stands at N71.2 trillion and $42.9 billion, respectively. This is a marked increase from December 2023, when domestic debt was N59.1 trillion and foreign debt at $42.4 billion, reflecting growth rates of 20.4% and 1.1%, respectively.

Under the Tinubu administration, domestic debt alone has surged from N54.1 trillion in June 2023 to N71.2 trillion currently. Notably, Promissory Notes make up a significant portion of this domestic debt increase, totaling N780 billion as of June 2023.

Reasons Behind the Surge in Promissory Notes

The federal government has increasingly turned to Promissory Notes due to challenges in meeting financial obligations after ending reliance on central bank funding through the Ways and Means facility. According to reports, the rise in Promissory Notes as of December 2023 is partly due to incentives owed to exporters under the Export Expansion Grant (EEG) scheme, a burden carried over from previous administrations.

While detailed reasons for the additional N342.6 billion in Promissory Notes debt in 2024 are not explicitly stated, it is believed to be linked to outstanding payments to government contractors, suppliers, and oil marketers.

Escalating Fiscal Deficit

Nigeria’s budget deficit has reached 7.6% of GDP as of August 2024, significantly exceeding the approved target of 3.8% for the year. This alarming fiscal gap is noted in recent statements from members of the Central Bank of Nigeria (CBN) Monetary Policy Committee, who express concerns over the widening disparity between government revenue and expenditure.

For the 2024 fiscal year, the National Assembly approved a budget of N28.7 trillion with a revenue target of N19.5 trillion, resulting in a projected deficit of N9.1 trillion or 3.8% of GDP. However, the deficit has exceeded initial estimates, leading to the introduction of a supplementary budget of N6.2 trillion later in the year, which further strains Nigeria’s fiscal outlook.

Projections for the 2025 Fiscal Year

Looking ahead, the federal government plans a proposed budget of N47.9 trillion for 2025. This was announced by Atiku Bagudu, the Minister of Budget and Economic Planning, following a Federal Executive Council (FEC) meeting chaired by President Tinubu.

The council has approved the Medium-Term Expenditure Framework (MTEF) for 2025-2027, setting the crude oil benchmark at $75 per barrel with an oil production target of 2.06 million barrels per day (bpd). The framework also sets an exchange rate of N1,400 per dollar and anticipates a GDP growth rate of 6.4%.

As Nigeria navigates these fiscal challenges, the federal government’s increasing reliance on Promissory Notes and rising debt levels underscore the urgent need for sustainable financial management strategies. The 2025 budget framework will play a critical role in shaping the nation’s economic future under the Tinubu administration.

Nigeria Continues Petrol Imports Despite Dangote Refinery; Spends N3 Trillion In 42 Days

Nigeria Continues Petrol Imports Despite Dangote Refinery; Spends N3 Trillion In 42 Days

Taskforce To Enforce Sanctions On Filling Stations For Petrol Overpricing

Nigeria is still heavily reliant on petrol imports, spending about N3 trillion on fuel between October 1 and November 11, despite having local refineries like the operational Dangote Refinery.

Reports indicate that during this period, the country imports 1.5 million metric tonnes of Premium Motor Spirit (PMS), 414,018 metric tonnes of diesel, and 13,500 metric tonnes of aviation fuel. This amounts to over 2 billion litres of petrol, 500 million litres of diesel, and 17 million litres of jet fuel.

These continued imports raise concerns about their impact on local refining capabilities, especially given the potential of the Dangote Refinery to reduce Nigeria’s dependency on fuel imports.

NMDPRA Approves Additional Petrol Imports for December

In response to increasing demand, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently grants licenses for an additional 3.5 billion litres of petrol imports to be supplied by December. Sources within the sector express frustration, arguing that prioritizing imports over local production undermines the capabilities of refineries like Dangote’s, which reportedly have sufficient capacity to meet domestic needs.

“This approach is damaging to our economy,” an industry insider comments. “Granting more import licenses when local refineries are capable is a repeat of past mistakes that harmed other sectors like textiles.”

NNPC Clarifies Stance on Petrol Imports

The Nigerian National Petroleum Company (NNPC) clarifies its position on fuel imports following confusion over comments made by Group Chief Executive Officer Mele Kyari. Contrary to reports that NNPC plans to cease petrol imports, spokesperson Olufemi Soneye emphasizes that the company continues to import fuel to supplement domestic supply.

“The statement that NNPC has stopped importing petrol is a misunderstanding,” Soneye explains. “Our priority is to utilize local refinery outputs, but imports remain necessary to meet immediate market demand.”

Dangote Refinery Calls for Consistent Crude Supply

Aliko Dangote, President of Dangote Group, urges greater collaboration to support local refineries in meeting Nigeria’s daily petrol demand of 32 million litres. Despite having over 500 million litres of refined products in reserve and already supplying 400 million litres to the market, the Dangote Refinery faces challenges due to an insufficient crude oil supply.

“Our industry cannot thrive without a consistent supply of crude oil,” Dangote says, emphasizing the need for government support to maximize refinery capacity.

Industry insiders allege that the limited allocation of crude oil to local refineries is intentional, aiming to maintain Nigeria’s dependence on imports. “This lack of crude supply is a strategy to keep the country reliant on foreign fuel,” a source reveals.

CORAN Demands Stricter Control on Import Licenses

The Crude Oil Refinery Owners Association of Nigeria (CORAN) calls for tighter regulations on import licenses, stressing that international traders are flooding the Nigerian market with substandard fuel. Eche Idoko, Publicity Secretary of CORAN, points out that the Petroleum Industry Act (PIA) supports local refining, and the continued issuance of import licenses violates this principle.

“The government must enforce stricter measures to protect local refineries,” Idoko argues. “We should not be issuing import licenses for products we have the capacity to produce locally.”

Government Pushes for Downstream Sector Reforms

President Bola Tinubu emphasizes the need for reforms in the downstream sector, suggesting that crude oil and refined product transactions should be conducted in Naira to reduce pressure on foreign exchange. He projects that ending fuel subsidies and shifting to Naira-based crude sales could save Nigeria up to N700 billion monthly, allowing for reinvestment in critical sectors of the economy.

Finance Minister Wale Edun supports this approach, highlighting that achieving self-sufficiency in refined petroleum products is crucial for long-term economic stability and growth.

Pricing Dispute with Dangote Refinery

Despite ongoing local refining efforts, a pricing dispute between the Dangote Refinery and petroleum marketers lingers. Marketers, represented by IPMAN and PETROAN, argue that the refinery’s prices are higher than the cost of imported fuel, leading to reluctance in purchasing locally refined products. Dangote Refinery counters that its prices are competitive with international rates, offering additional discounts to attract buyers while maintaining product quality.

This dispute highlights the challenges Nigeria faces in balancing local production with imports to achieve energy self-sufficiency and economic stability.

Nigeria Customs And NAFDAC Partner To Curb Illicit Drugs And Harmful Products

Nigeria Customs And NAFDAC Partner To Curb Illicit Drugs And Harmful Products

The Nigeria Customs Service (NCS) and the National Agency for Food and Drug Administration and Control (NAFDAC) have signed a Memorandum of Understanding (MoU) aimed at combating the influx of illicit drugs and harmful products into Nigeria. This agreement is formalized during the Comptroller General of Customs (CGC) conference held in Abuja.

NCS Comptroller-General, Adewale Adeniyi, highlights that this MoU represents the outcome of years of strategic discussions and collaboration between the two agencies. He emphasizes that the partnership is a crucial response to the rising challenge of illicit pharmaceutical products in the country.

“This MoU addresses a significant problem we are facing,” Adeniyi states, explaining that the agreement focuses on enhanced cooperation, especially in the area of intelligence sharing between NCS and NAFDAC.

Adeniyi shares an example of the real-time intelligence exchange under the partnership, noting, “There are times when, in the middle of the night, NAFDAC’s Director-General sends critical intelligence about suspicious containers that may arrive in the morning. This timely information is essential for our joint operations.”

He further explains that recent inspections at one of Nigeria’s ports, which led to a state of emergency, reveal only a fraction of the illicit pharmaceutical products entering the country. Adeniyi calls for a concerted effort to put an end to the circulation of these dangerous items, urging, “It is time for all stakeholders to unite and declare that this is the start of a new era. We are committed to protecting Nigeria and securing the future of our children from these hazardous products.”

NAFDAC’s Commitment to Public Health and Safety

NAFDAC Director-General, Prof. Moji Adeyeye, describes the MoU as a vital step toward safeguarding the health and wellbeing of Nigerians. She stresses the importance of the collaboration, noting that the products regulated by NAFDAC, such as food and healthcare items, impact Nigerians daily.

“This partnership is about ensuring that the food, medicines, and healthcare products we consume are safe and meet the highest quality standards,” Prof. Adeyeye states.

She also addresses the broader security implications of unregulated products, highlighting that some approved chemicals can be misused by criminal elements. According to her, the agreement also aims to eliminate ghost companies that evade regulatory oversight.

“We have identified companies operating outside our regulatory framework. This MoU signifies the beginning of the end for such illicit practices,” Prof. Adeyeye affirms, underscoring the agency’s commitment to enhancing public safety and national security.

Nigeria To Issue $1.7 Billion Eurobond To Fund 2024 Budget Shortfall

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.

In addition to the Eurobond, the government plans to issue Islamic Sukuk bonds to raise an extra $500 million, leveraging international money market instruments to secure needed capital.

Budget Financing Strategy

Nigeria’s 2024 budget stands at N28.7 trillion (approximately $17 billion), with a projected deficit of N9.1 trillion ($5.2 billion) to be covered through borrowing. While specific issuance dates for the Eurobond have not been disclosed, Edun notes that the borrowing plan will be submitted to the National Assembly this year, aiming for swift legislative approval.

“This new borrowing forms part of the amended Nigerian 2024 Appropriation Act,” Edun states. Earlier in the year, Nigeria successfully raised about $900 million through its first domestic dollar bond issuance.

Potential Rise in External Debt

The planned Eurobond issuance is set to reintroduce Nigeria to the global debt markets, yet it may also lead to a rise in the country’s external debt, which currently stands at approximately $42.9 billion—accounting for nearly 39% of the total debt stock.

To date, Nigeria has largely relied on domestic borrowing instruments such as Federal Government Bonds, Treasury Bills, and Open Market Operations (OMO). However, the country’s domestic debt has reached around N66.9 trillion as of Q2 2024, representing about 60% of the total debt portfolio. One of the challenges of increasing foreign debt is the higher interest costs, exacerbated by the naira’s depreciation, which makes servicing external debt more expensive.

IMF Raises Concerns

In September, Nigeria issued $500 million in domestic foreign currency bonds, which were oversubscribed to $900 million. At the time, Edun ruled out issuing Eurobonds due to concerns over high debt servicing costs amid volatile dollar securities.

However, ongoing revenue shortfalls, largely due to low crude oil production, have made the Eurobond issuance critical to address budget deficits. The International Monetary Fund (IMF) has expressed caution regarding Nigeria’s plans to issue additional dollar-denominated bonds, warning that such measures could increase pressure on the naira and elevate the costs associated with servicing naira-based debt.

Furthermore, the IMF highlights potential risks in the government’s strategy to issue domestic foreign exchange securities, noting that it could fragment the market and impact dollar liquidity in the official exchange rate market.

FG Aims To Digitize 774 Local Government Headquarters Nationwide By 2027

FG Aims To Digitize 774 Local Government Headquarters Nationwide By 2027

The Federal Government unveils its plan to digitize local government headquarters across all 774 Local Government Areas (LGAs) in Nigeria by 2027, aiming to boost digital access and improve efficiency in public service delivery.

The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, announces this initiative during a stakeholders’ retreat on the “Project 774 Connectivity” in Abuja. He outlines the government’s strategy to bring every LGA into the digital age by 2027 through partnerships with relevant agencies.

“Our goal is to equip all 774 LGAs with full digital capabilities by 2027, as outlined in our project blueprint,” Dr. Tijani states.

Enhancing Access to Digital Public Infrastructure

Dr. Tijani emphasizes that the primary goal of this digitization project is to drive inclusive development by expanding access to digital public infrastructure, especially in remote and underserved areas. The project focuses on providing reliable internet connectivity to local government offices, enabling them to deliver essential services more efficiently, such as healthcare, education, social welfare, and infrastructure management.

“Local governments are responsible for managing primary healthcare, education, social assistance, and infrastructure development,” Dr. Tijani notes. He adds that the digital transformation aims to empower local businesses, promote digital skills, and increase governance transparency. “Enhanced connectivity will drive local entrepreneurship, foster innovation, and strengthen governance and accountability in these areas,” he adds.

Advancing Rural Connectivity and Social Inclusion

The Executive Secretary of the Universal Service Provision Fund (USPF), Oluyomi Arowosafe, underscores the importance of expanding internet access to rural and underserved communities. He explains that such connectivity efforts are crucial for promoting social inclusivity and supporting economic growth.

“The USPF focuses on providing subsidies to service providers to expand coverage in rural areas, which will enhance living standards, healthcare, and economic development,” Arowosafe explains. He highlights that this initiative aligns with the Federal Government’s strategic priorities of economic growth and inclusiveness, with Project 774 designed to improve citizen engagement and public service delivery at the local level.

The project already shows progress in certain regions. Kingsley Fanwo, Kogi State Commissioner for Information and Communications, reports that several LGAs in Kogi State are benefiting from enhanced digital infrastructure, which improves connectivity and operational efficiency in local government councils.

This nationwide digitization effort marks a significant move towards transforming Nigeria’s public sector, fostering digital inclusion, and enhancing service delivery across all levels of government.

Push For Ban On Card PIN Use In Online Transactions Gains Support

Nigeria’s Inflation Rate Set To Increase In October Amid Economic Pressures

Inflation Rate Rises To 24.08% - NBS

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.

Economic experts link the anticipated surge in inflation to factors such as escalating food prices, higher energy costs, ongoing foreign exchange (FX) volatility, and an increase in money supply.

Experts Share Their Insights

Dr. Ayodeji Ebo, Managing Director and Chief Business Officer at Optimus by Afrinvest, predicts an increase in inflation on both a yearly and monthly basis due to several contributing factors:

  • Rising petrol and gas prices driven by the government’s complete removal of fuel subsidies.
  • Reduced food harvests caused by severe flooding and security challenges in key agricultural regions.
  • FX volatility affecting the prices of imported food items.
  • Higher electricity tariffs, particularly as more consumers are moved into Band A.

Dr. Ebo projects a headline inflation rate of 2.55% month-on-month and 33.8% YoY for October.

Similarly, Mr. Olatunde Amolegbe, Managing Director of Arthur Steven Asset Management Limited, expects inflation to rise by 50 to 100 basis points. He attributes this to the lingering impact of the September fuel price hike, increased transportation costs, and the naira’s devaluation.

Samuel Oyekanmi, Research and Insight Lead at Norrenberger Financial Group, anticipates a slight increase in inflation, estimating it at 33.1% YoY for October. He identifies energy prices, particularly petrol, as the primary drivers. Given persistent inflationary pressures, he expects the Central Bank of Nigeria (CBN) to maintain its current tight monetary policy stance.

Key Factors Driving Inflation

  1. Energy Costs: Escalating fuel prices and higher electricity tariffs are raising production and logistics expenses. The Nigerian National Petroleum Corporation (NNPC) recently hiked petrol prices to N1,030 per litre in Abuja and N998 in Lagos, contributing to inflationary pressures.
  2. Food Inflation: Food inflation surged to 37.77% YoY in September 2024. Factors such as insecurity, flooding in agricultural areas, and limited access to finance for farmers are driving this trend. A recent market survey in Lagos shows that the price of a bag of beans increased by 9.5%, while some brands of 70g noodles saw prices jump by up to 19.8%.
  3. Excess Money Supply: The broad money supply (M3) grew by 15.16% YoY to N108.97 trillion in September 2024, driven by increased government spending and domestic and foreign asset growth. Despite the CBN’s aggressive interest rate hikes, excess liquidity remains a challenge.
  4. FX Volatility: Continuous FX instability weakens the naira, raising the cost of imported goods. Imported food inflation increased by 1.20%, reaching 39.51% YoY in September. The CBN has introduced measures to stabilize the naira, such as resuming dollar sales to Bureau De Change operators and addressing a $1.5 billion FX backlog. However, these initiatives have yet to deliver significant relief as inflation pressures persist.

Outlook

Economists foresee a further increase in October’s inflation rate due to ongoing economic challenges. The combination of rising energy costs, FX volatility, and disruptions in agricultural production is likely to sustain upward pressure on inflation, posing additional challenges for the Nigerian economy.

New Minimum Capital Requirements For Banks To Enhance Financial Inclusion – CBN Governor Cardoso

New Minimum Capital Requirements For Banks To Enhance Financial Inclusion – CBN Governor Cardoso

Olayemi Cardoso,

The Central Bank of Nigeria (CBN) announces that its recent introduction of new minimum capital requirements for banks is a strategic effort to improve financial inclusion, particularly among underserved communities. This initiative aims to bridge existing gaps and promote access to financial services for marginalized groups.

Speaking at the opening of the 2024 International Financial Inclusion Conference, themed “Inclusive Growth—Harnessing Financial Inclusion for Economic Development,” CBN Governor Yemi Cardoso emphasizes that expanding financial access is crucial for sustainable economic progress. He highlights that the new capital requirements will ensure banks are better capitalized, allowing them to extend more credit and financial products to underserved markets, including women, youth, and micro, small, and medium enterprises (MSMEs).

“The Central Bank is committed to ensuring that our financial inclusion policies effectively address the unique challenges faced by underserved populations,” Cardoso states. “By strengthening banks’ capital bases, we empower them to take on greater risks, thereby enhancing their ability to support MSMEs, rural areas, and other vulnerable segments that previously struggled to access formal financial services.”

Cardoso also points out the significant impact of MSMEs on Nigeria’s economy, noting that they account for over 80% of the nation’s employment. He underscores the potential for economic growth if financial inclusion initiatives are tailored to support these enterprises, as well as women who are vital to driving inclusive growth.

“SMEs are the backbone of our economy, and financial inclusion can unlock their full potential,” Cardoso remarks. “Similarly, when women are financially empowered, they reinvest in their families and communities, leading to wider socio-economic benefits. However, women in Nigeria remain disproportionately excluded from the formal financial sector.”

Governor Babajide Sanwo-Olu of Lagos State acknowledges the challenges in achieving comprehensive financial inclusion, attributing them to inadequate infrastructure and lack of trust in the financial system. Represented by Deputy Governor Obafemi Hazmat, Sanwo-Olu highlights that bridging the digital divide is essential to overcoming these barriers.

“Many Nigerians are still excluded from the formal banking system due to physical infrastructure limitations and trust issues,” Sanwo-Olu says. “We must also address the digital divide that leaves many without access to essential digital financial tools.”

Despite these challenges, Sanwo-Olu expresses confidence in Nigeria’s capacity to overcome obstacles through innovation and resilience. “We cannot allow these barriers to hinder our progress. Instead, we must tackle them with the creativity, resilience, and determination that define us as Nigerians,” he concludes.

The conference brings together stakeholders from various sectors to discuss strategies for leveraging financial inclusion to drive economic development, focusing on innovative solutions to support the country’s financial inclusion agenda.

Push For Ban On Card PIN Use In Online Transactions Gains Support

Tinubu Presides Over 20th FEC At State House

President Bola Tinubu chaired the 20th Federal Executive Council (FEC) meeting on Thursday at the State House in Abuja, marking the council’s first gathering since the passing of former Chief of Army Staff, Lt. General Taoreed Lagbaja.

The meeting, which began at 1:13 pm, followed an hour-long engagement with a delegation from Nigeria’s South-South region.

This session is also notable for its timing; previous FEC meetings had alternated between Mondays and Wednesdays, making Thursday’s meeting an exception in Tinubu’s administration.

Attending the meeting were Vice President Kashim Shettima, Chief of Staff Femi Gbajabiamila, and Head of Civil Service Mrs. Didi Walson-Jack. Secretary to the Government of the Federation George Akume was represented by Dr. Emanso Okop, Permanent Secretary of the Cabinet Affairs Office.

The council’s agenda included a presentation by representatives from the Ministry of Budget and Economic Planning, likely in preparation for Tinubu’s upcoming 2025 budget presentation.

Notably absent were the Minister of Environment, Abbas Lawal, and other council members, who are currently in Baku, Azerbaijan, attending the 2024 UN Climate Change Summit.

Last week’s FEC meeting, initially scheduled for November 6, was postponed out of respect for Lt. General Lagbaja, a development announced by Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga.

Former Gov Okowa Makes Public Appearance After EFCC’s  Arrest

Former Gov Okowa Makes Public Appearance After EFCC’s  Arrest

Okowa’s Positive Turn On #ENDSARS

Former Delta State Governor, Ifeanyi Okowa, made his first public appearance on Wednesday, joining Governor Sheriff Oborevwori and other dignitaries at a service of songs held in honour of Mrs. Victoria Ossai Obielum, mother of prominent Delta politician Godwill Obielum.

The event took place at Obielum’s residence in Asaba, the Delta State capital.

Okowa, who was arrested on November 4, 2024, over an alleged N1.3 trillion fraud, was released on Friday after authorities confiscated his passport. His appearance drew considerable attention, marking his return to the public eye amid ongoing investigations.

The service of songs was well attended by political and community leaders, including the Delta State Chairman of the Peoples Democratic Party (PDP), Solomon Arenyenka, members of the state executive committee, and prominent retired and serving security officials.

Delivering the sermon, Pastor Ifeanyi Ogude of Heaven Bound Christian International Church Ministry reflected on the importance of a life dedicated to faith and service. He urged attendees to live meaningful lives, leaving behind legacies that would endure.

“Nobody knows when death will come, and as such, people should be prepared by living a good life and leaving worthy legacies behind, as they will be remembered for what they did,” he said.

Mrs. Obielum, who passed away at 87 on June 20, 2024, will be laid to rest on Saturday, November 16, 2024, in her family home in Ushie, Ndokwa East Local Government Area. The ceremony is expected to draw additional dignitaries from across the state as they pay their respects to the Obielum family.

Money Market Rates Surge Amidst Liquidity Deficit

Push For Ban On Card PIN Use In Online Transactions Gains Support

The use of card PINs for online transactions is coming under scrutiny as Charles Ude, an Abuja-based legal practitioner, urges the federal government to consider banning this practice. He supports a proposal by Dr. Kingsley Chibuzor Aguoru, a UK-based Nigerian Chartered Engineer, who believes that eliminating card PINs in digital payments could significantly enhance security and protect consumers from fraud.

Dr. Aguoru currently petitions the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN), advocating for an immediate ban on card PINs for online payments due to security risks.

Supporting this initiative, Ude highlights Aguoru’s extensive background in technology and finance, describing him as a leading voice for a safer financial environment in Nigeria. Ude emphasizes that Aguoru’s concerns should receive serious attention from policymakers.

Aguoru’s push for improved security measures stems from his personal experience with card-not-present (CNP) fraud. He argues that using card PINs for online transactions exposes consumers to significant risks and potential financial fraud. Additionally, he expresses concerns over current practices related to the National Identity Card system, which he believes increase the security burden on customers.

Aguoru’s advocacy focuses on implementing safer transaction methods to protect consumers and enhance the security of Nigeria’s digital financial landscape.

World Diabetes Day: Rising Insulin Costs Push Nigerians Toward Risky Alternatives, Diabetes Group Warns

Nigeria’s Eurobonds Yield Rise By 7 Basis Points Following U.S. Inflation Data

DMO Set To Auction N150bn Bond On FG's Behalf

The average yield on Nigeria’s Eurobonds rose by 7 basis points as foreign portfolio investors reduced their exposure in the international market, following a decline in sentiment. The shift comes as U.S. inflation surged by 20 basis points to 2.6% in October, casting uncertainty over the Federal Reserve’s potential rate cuts.

The Nigerian Eurobond market experienced sell pressure across short-, medium-, and long-term bonds, resulting in a 0.07% increase in average yield to 9.54%. According to traders, while there was initial buying interest, sentiment soured after the U.S. inflation data release. Core inflation remained steady at 3.3%, with the monthly figure holding at 0.3%, matching September’s rate.

This moderate inflation print supports expectations for a Federal Reserve rate cut next month, with market odds suggesting a 79% probability of a 0.25% cut, as indicated by the CME FedWatch Tool. By late October 2024, average yields rose to 9.58% before interest in Nigeria’s Eurobonds picked up again. In the prior month, Nigeria’s sovereign bond index from S&P/FMDQ returned -0.30%, down from 3.77% in September, according to a report from Meristem Securities Limited.

World Diabetes Day: Rising Insulin Costs Push Nigerians Toward Risky Alternatives, Diabetes Group Warns

Money Market Rates Surge Amidst Liquidity Deficit

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

Money market rates climbed sharply due to a liquidity shortfall in the financial system. Short-term benchmark rates continued to rise following substantial outflows from recent primary auction sales. The banking sector’s liquidity deficit widened by 37%, with a starting negative balance of ₦219.69 billion, according to TrustBanc Capital Limited.

Due to this low liquidity, deposit money banks increasingly turned to the Central Bank of Nigeria’s (CBN) standing lending facility, though borrowing costs remain elevated at 31.75%, reflecting a recent hike in Nigeria’s monetary policy rate. The rate adjustment has increased borrowing costs for both short- and long-term loans and is also impacting fixed-interest securities in the money market.

MarketForces Africa reported that CBN’s recent cash reserve debits have further strained liquidity in local banks, a measure taken as part of regulatory efforts. Analysts noted that some larger banks are demanding higher rates from smaller banks facing liquidity constraints.

On Wednesday, the Nigerian Interbank Offered Rate (NIBOR) declined across most maturities, except for the Overnight NIBOR, which rose by 0.16% to 32.58%, per Cowry Asset Limited. The Open Repo Rate (OPR) and Overnight Lending Rate (O/N) also dipped by 0.10% and 0.12%, closing at 31.93% and 32.48%, respectively, as the liquidity shortage persisted.

World Diabetes Day: Rising Insulin Costs Push Nigerians Toward Risky Alternatives, Diabetes Group Warns

Nigeria’s Oil Output Rises To 1.8 Million Barrels Daily, Boosting Government Revenue

The Federal Government is set to earn increased revenue from the oil and gas sector, with crude oil production reaching 1.8 million barrels per day, a significant accomplishment led by the Nigerian National Petroleum Company Ltd (NNPCL) in partnership with industry stakeholders.

This was unveiled by NNPCL’s Group Chief Executive Officer, Mele Kyari, during a meeting at the Oil Production War Room at the NNPC Headquarters in Abuja on Thursday.

The meeting was chaired by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, and attended by top NNPCL executives, including Chairman of the NNPC Ltd Board, Chief Pius Akinyelure; Group CEO, Mele Kyari; Chief Financial Officer, Mr. Adedapo Segun; and Executive Vice Presidents Mr. Isiyaku Abdullahi (Downstream) and Udobong Ntia (Upstream), among others.

This achievement follows a projection by Kyari last December during an interactive session with the Senate Committee on Finance, where he affirmed the feasibility of NNPCL’s crude production goals aligned with the 2024 Budget.

In addition to increased oil output, NNPCL has ramped up gas production, now yielding 7.4 million standard cubic feet daily to power the country’s gas infrastructure, particularly the Ajaokuta-Kaduna-Kano (AKK) gas pipeline. This increase from 6.1 million cubic feet earlier in the year underlines NNPCL’s commitment to bolstering Nigeria’s energy sector in line with government targets.

According to Lawal Musa, the Chief Production War Room Officer, the collaboration between NNPCL, industry stakeholders, government agencies, private security, and local communities has been instrumental in achieving this level of production. He praised the teamwork and engagement efforts that have made this milestone possible.

“Today, the entire industry is very proud; we are grateful to have crossed the 1.8 million barrels per day mark,” Musa said. “This is a significant milestone. For a long time, we have not been able to achieve this. Concurrently, we have also surpassed 7.4 BCF of gas. This is monumental.”

Musa further expressed optimism about reaching a 2 million barrels per day target by year’s end, noting that oil production was previously at 1.43 million bpd in June, rose to 1.7 million bpd by August, and is now consistently above 1.8 million bpd. This aligns with a mandate from the President, calling for accelerated production growth to reach the 1.7 million bpd milestone.

“With continued momentum and strengthened security measures, we anticipate faster recovery and better market delivery, helping us achieve the 2 million barrels per day goal by year-end,” Musa added.

The Minister of State for Petroleum Resources, Heineken Lokpobiri, applauded NNPCL’s achievement, describing it as “remarkable” and a clear indication of the company’s capacity to achieve – and possibly exceed – the 2 million barrels per day target.

“Today, we are grateful to have crossed the 1.8 million barrels per day mark and also surpassed 7.4 BCF of gas, the entire team is fully aligned and committed to delivering greater value. This goal is possible and achievable. On behalf of the Ministry of Petroleum Resources and the Federal Government of Nigeria, I extend my congratulations to the Chairman, board members, and NNPC management for their dedication.” He said.

NNPC Ltd Board Chairman, Chief Pius Akinyelure, expressed confidence in the company’s future, calling the recent achievements “just the beginning of greater accomplishments” for NNPCL. He encouraged the management and staff to build on this success and continue striving to exceed shareholder expectations.

“This is just the beginning; we want to see more landmark accomplishments,” Akinyelure stated, highlighting the company’s commitment to sustaining the upward trajectory and further enhancing Nigeria’s oil and gas sector.

World Diabetes Day: Rising Insulin Costs Push Nigerians Toward Risky Alternatives, Diabetes Group Warns

Cryptocurrency Market Reaches Record $3 Trillion Amid Regulatory Optimism Following Trump’s Election

Cryptocurrency Market Now Valued At $2trn

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.

This surge in market value marks a new high, nearly reaching $3.2 trillion, surpassing the previous peak set in 2021 during a wave of pandemic-induced investments. Bitcoin, the largest cryptocurrency by market capitalization, has played a significant role in this rally, reaching a new all-time high of $93,480 on November 14, according to data from CoinGecko.

Bitcoin’s strong performance often sets the stage for gains across the broader cryptocurrency market, leading to increased interest in alternative coins. Matthew Dibb, Chief Investment Officer at Astronaut Capital, notes that “when Bitcoin breaks out, it typically paves the way for altcoins to follow, potentially driving further growth in the total market cap.”

Regulatory Optimism Boosts Crypto Sentiment

Trump’s election, along with the victory of several pro-crypto lawmakers in Congress, has fueled optimism in the digital asset space. The prospect of reduced regulatory uncertainties is seen as creating a more supportive environment for the cryptocurrency market.

Since the November 5 election, Bitcoin has surged by 30% to reach $90,000, while Ethereum has jumped 33% to $3,220. Dogecoin, a more volatile asset known for its association with Elon Musk, has soared by 140%. The rally extends to cryptocurrency exchange-traded funds (ETFs), which have seen increased buying activity, particularly from institutional investors seeking indirect exposure to digital assets.

Carl Szantyr, founder and managing partner at Blockstone Capital, is optimistic about Bitcoin’s future, stating, “With the current momentum, a $100,000 Bitcoin by year-end seems within reach.”

From Bear Market to Bullish Rally

The recent market surge represents a sharp rebound from last year’s “crypto winter,” during which Bitcoin struggled below $20,000 after the collapse of FTX and other major crypto firms. Despite the current gains, the $3 trillion market cap remains small compared to traditional assets like gold, which stands at $19 trillion, or the S&P 500 with a market cap of $50.6 trillion.

While the overall crypto market shows significant recovery, certain segments like non-fungible tokens (NFTs) are experiencing slower growth. According to NonFungible.com, the average NFT sale price remains steady at $2,700, up slightly from the $2,000 average earlier this year.

DBS Bank in Singapore, which runs a digital asset exchange, reports increased trading volumes since November, although clients are mostly sticking to well-established cryptocurrencies rather than exploring riskier decentralized exchanges.

Despite mixed performances across various sectors of the crypto ecosystem, industry players are hopeful that the rising market capitalization will spur interest in decentralized finance (DeFi) and blockchain innovations. Danny Chong, co-founder of DeFi platform Tranchess, expects the growing market cap to drive further development and adoption in the DeFi space.

World Diabetes Day: Rising Insulin Costs Push Nigerians Toward Risky Alternatives, Diabetes Group Warns

Access Bank UK Acquires Majority Stake In Afrasia Bank

… Expands Footprint In Africa

Access Holdings Plc has announced a major strategic move as its subsidiary, Access Bank UK Limited, secures a majority equity stake in Afrasia Bank Limited. Afrasia Bank, the fourth-largest bank in the Republic of Mauritius by assets, will now integrate into Access Bank’s expansive financial network, strengthening the group’s position within the region.

With Mauritius’ financial sector contributing a significant 13.4% to its Gross Domestic Product (GDP), the acquisition provides Access Bank UK with a robust foundation for growth in both personal and corporate banking segments. The island nation’s role as a financial hub will allow Access Bank to enhance trade finance capabilities and strengthen regional connectivity, enabling seamless cross-border transactions across Africa and beyond.

Afrasia Bank’s impressive financial metrics highlight the scale of the acquisition. As of June 30, 2024, Afrasia reported total assets of over US$5.7 billion and a net profit after tax of US$152.4 million. This acquisition aligns with Access Bank’s broader vision to fortify its presence in Africa and bolster its international banking operations.

Roosevelt Ogbonna, Managing Director/CEO of Access Bank Plc and the CEO of the Banking Group, lauded the acquisition as a milestone in Access Bank’s Pan-African growth strategy.

 “This acquisition marks a pivotal moment in our African growth strategy, reinforcing our position as a leading Pan-African financial institution, Mauritius offers immense potential as an international financial hub, and through Afrasia Bank, we are excited to unlock new opportunities to drive trade, support businesses, and foster economic inclusion across the region as we continue our mission to be the World’s Most Respected African Bank.” Ogbonna stated.

Jamie Simmonds, Managing Director of Access Bank UK, expressed optimism regarding the acquisition’s long-term profitability and its role in diversifying the bank’s earnings.

 “With a strong balance sheet and a well-established brand in Mauritius, Afrasia Bank provides us with a sustainable platform to scale and achieve long-term profitability. The deal aligns with our strategy to diversify and future-proof our earnings, offering bespoke solutions that enable our clients to access global markets with ease,” Simmonds noted.

Access Bank UK reiterated that it remains committed to fostering sustainable growth, advancing intra- and inter-African trade, and providing innovative financial solutions that support businesses and individuals.

‘’the acquisition process is expected to progress in the coming months, with both parties working closely to complete the transaction and meet regulatory requirements.’’

Global Crude Oil Prices Fall Amid Stronger U.S. Dollar

Bitcoin Surges By 30% Following U.S. Election

This Is Why Bitcoin Keeps Dropping In Value

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.

Crypto analysts attribute this rally to a positive market outlook, with Bitcoin reaching an all-time high of $93,477 on Wednesday, November 13, according to CoinGecko.

Projections suggest that the new administration’s friendlier stance on cryptocurrency could drive a sustained increase in digital asset prices. Other major cryptocurrencies have also surged, contributing to a stablecoin demand and a 3.31% rise in the global crypto market cap, which reached $2.98 trillion, while the overall market value hit nearly $3.2 trillion in early trading on November 14 in Asia.

Over the last 24 hours, the total crypto market volume reached $299.37 billion, marking a 3.36% decrease. Of this, $12.08 billion, or 4.04%, accounted for decentralized finance (DeFi) trades. Stablecoin trading volume reached $275.14 billion, making up 91.91% of the total 24-hour crypto market volume. Bitcoin’s market dominance currently stands at 59.65%, slightly down by 0.21%.

Bitcoin’s price has more than doubled this year, climbing by 30% since Election Day. Ether, another major cryptocurrency, is up 33% to $3,220. Bitcoin ETFs have also spurred demand, with $510 million flowing into U.S.-based Bitcoin funds on Wednesday alone, adding to a total of $4.7 billion over the past six trading days.

With several pro-crypto lawmakers elected alongside Trump, there’s renewed optimism around regulatory clarity for cryptocurrencies in the U.S., fueling this market upswing.

Global Crude Oil Prices Fall Amid Stronger U.S. Dollar

Nigeria Secures $134 Million Loan From African Development Bank To Boost Agricultural Production

AfDB Approves $11.7m To Facilitate Access To Fertilizers For African Farmers

The Federal Government of Nigeria has secured a $134 million loan from the African Development Bank (AfDB) aimed at supporting farmers in enhancing seed and grain production across the nation.

According to a statement by Mrs. Anthonia Eremah, Chief Information Officer at the Ministry of Agriculture and Food Security, the loan was announced during the launch of the 2024/2025 National Dry Season Farming program in Calabar by Sen. Abubakar Kyari, the Minister of Agriculture and Food Security.

Minister Kyari emphasized that the loan aligns with the government’s goal of achieving year-round agricultural production through the re-introduction of national dry season farming. This funding, part of the National Agricultural Growth Support Scheme-Agro Pocket (NAGS-AP) Project, is expected to significantly enhance food security.

The government has declared a state of emergency on food production to ensure access to affordable, nutritious food for all Nigerians. The agricultural sector is also seen as a pathway to economic growth, focusing on increased production of staple crops like wheat, rice, maize, sorghum, soybeans, and cassava in both wet and dry seasons.

In the 2023/2024 dry season, the government supported 107,429 wheat farmers in phase one and 43,997 rice farmers in phase two. Additionally, in the 2024 wet season, 192,095 farmers growing rice, maize, sorghum, millet, soybeans, and cassava received support across all 37 states, including the Federal Capital Territory (FCT).

The minister noted that Cross River State has emerged as a leading contributor to wheat production, with over 3,000 farmers identified to benefit from government support for grain cultivation. This support highlights the federal government’s collaboration with Cross River as it embarks on its inaugural wheat production efforts under the 2024/2025 dry season farming program.

The 2024/2025 dry season project aims to support 250,000 wheat farmers across wheat-producing states with subsidized agricultural inputs to cultivate approximately 250,000 hectares, expected to yield around 750,000 metric tonnes of wheat. This is intended to reduce dependence on imports and increase local consumption.

Furthermore, the program will assist 150,000 rice farmers across all 37 states, including the FCT, to produce an estimated 450,000 metric tonnes of rice, contributing significantly to national food reserves.

Global Crude Oil Prices Fall Amid Stronger U.S. Dollar

World Diabetes Day: Rising Insulin Costs Push Nigerians Toward Risky Alternatives, Diabetes Group Warns

The Network of Persons Living with Diabetes in Nigeria is raising concerns over the skyrocketing cost of insulin, making it increasingly difficult for patients to access essential treatment. The rising prices are driving many to resort to cheaper, less effective alternatives, putting them at higher risk of severe health complications.

As the world marks World Diabetes Day 2024 under the theme “Diabetes and Wellbeing,” the organization, along with its partners, highlights the urgent need for improved diabetes care in Nigeria. During a Patients Advocacy march in Abuja, Comrade Bernard Enyia, Vice President II of the Diabetes Association of Nigeria, calls on the federal government, policymakers, and stakeholders to ensure that people living with diabetes have access to affordable, comprehensive, and quality treatment.

Enyia, who co-chairs the National Action on Sugar Reduction Coalition, emphasizes the importance of strong health policies that address both the physical and mental well-being of diabetes patients. He urges policymakers to prioritize holistic care and implement fiscal health policies targeting diabetes and other non-communicable diseases (NCDs).

Living with type 2 diabetes himself, Enyia cites alarming statistics from the International Diabetes Federation (IDF): globally, over half a billion people are currently diabetic, including 11.2 million Nigerians, with more than half undiagnosed. In 2021, diabetes claims 48,375 lives in Nigeria and results in ₦1.81 trillion ($1.81 billion USD) in healthcare costs. NCDs now account for 29% of annual deaths in the country, with diabetes being a significant contributor.

Enyia highlights that diabetes impacts both physical and mental health, with over one-third of patients experiencing significant distress. According to the IDF, more than 60% of surveyed patients report a fear of diabetes-related anxiety, depression, and complications, which adversely affects their overall well-being. Enyia stresses the need for immediate action to prioritize patient health over profits within the healthcare system.

Nigeria’s Insulin Crisis and Escalating Healthcare Costs

The group is sounding the alarm over Nigeria’s insulin crisis, where prices have surged beyond the reach of average citizens. For instance, the cost of Lantus insulin has increased from ₦3,500 two years ago to ₦75,000 in 2024. Additionally, blood sugar testing machines now cost ₦30,000, up from ₦6,000, while a single blood sugar test in public hospitals costs ₦2,000.

“This drastic price hike forces many patients to opt for cheaper, less effective alternatives, significantly raising their risk of complications and even death,” Enyia explains.

Impact of Sugar-Sweetened Beverages on Diabetes Rates

Enyia also addresses Nigeria’s high consumption of sugar-sweetened beverages (SSBs), the highest in Africa and seventh worldwide, as a factor in the escalating NCD crisis. He links high SSB consumption to rising cases of obesity, type 2 diabetes, and hypertension. The group advocates for a substantial increase in SSB taxes from the current 1.67% to 39% of the retail price, aligning with World Health Organization (WHO) guidelines. This tax adjustment could generate ₦729 billion ($471.8 million USD) annually, which can be directed towards diabetes care and prevention programs.

Addressing Healthcare Inequities and Ending Discrimination

Enyia criticizes the disparities within Nigeria’s healthcare system, where patients with diabetes are forced to pay out-of-pocket, unlike those with conditions like HIV, leprosy, and tuberculosis who receive free care. He asserts that this inequity contradicts the United Nations’ Sustainable Development Goals (SDGs), particularly Goal 3 on health and well-being and Goal 10 on reducing inequalities.

“Our nation provides free mosquito-treated bed nets, yet those of us living with diabetes bear the full cost of our treatment, leading to catastrophic healthcare expenses,” Enyia laments. “This is a clear violation of equity, and the government must act to end this discrimination.”

Calls for Policy Reform and Sustainable Funding for Diabetes Care

The Network of Persons Living with Diabetes in Nigeria is urging the federal government to increase the SSB tax from ₦10/L to ₦130/L. This measure aims to discourage excessive sugar consumption and generate significant revenue that could help meet key global diabetes targets by 2030, such as diagnosing 80% of diabetics, achieving glycemic and blood pressure control for 80% of patients, and ensuring affordable access to insulin and glucose monitoring for all.

The group calls on the Federal Ministries of Health and Finance, alongside other stakeholders, to take immediate steps towards comprehensive policy reforms. They believe that with these measures, Nigeria can greatly improve the quality of life for people living with diabetes, reduce productivity losses due to NCDs, and promote a healthier future for all citizens.

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NNPC Signs Decade-Long Gas Supply Deal With Dangote Refinery

NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPC), signed a 10-year Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals. NGML will supply 100 million standard cubic feet per day (MMSCF/D) of gas to Dangote Refinery to support local production and stimulate industrial growth.

The agreement, signed by NGML Managing Director Justin Ezeala and Dangote Group CEO Aliko Dangote, emphasizes natural gas as a power source and feedstock for the refinery in Ibeju-Lekki, Lagos. Chief Corporate Communications Officer Olufemi Soneye noted that this aligns with President Bola Tinubu’s economic policy of utilizing Nigeria’s abundant gas resources to spur industrial expansion.

This landmark agreement, executed without capital expenditure, includes a 50MMSCF/D firm supply and an additional 50MMSCF/D interruptible supply for a decade, with renewal options. It reinforces NGML’s commitment to domestic gas usage, benefitting industries nationwide and ensuring energy security through strategic gas initiatives across Nigeria.

Global Crude Oil Prices Fall Amid Stronger U.S. Dollar

NGX Gains N132bn As UBA, Zenith, and Access Surge

Stock Exchange Closes Trading Week With N30bn Gain

The Nigerian Exchange (NGX) experienced a boost of approximately N132 billion, pushing market capitalization beyond the N59 trillion mark. This increase reflects a recovery in the equities market, driven by positive investor sentiment following recent declines.

As a result, NGX’s year-to-date return rose to 30.36% on Wednesday, remaining ahead of the annual inflation rate, with key economic data on the horizon. Buying activity across various indices helped the NGX All-Share Index grow by 0.22%, mirroring the growth in market capitalization.

Market data reveals that the All-Share Index increased by 217.05 points to close at 97,477.80. Atlass Portfolios Limited highlighted this recovery in a note, attributing gains to bargain hunting in the Financial and Consumer Goods sectors, which helped reverse prior losses.

The banking sector saw strong interest, with notable buying activity in Tier-1 banks: UBA (+3.48%), Zenith Bank (+2.38%), and Access Corp (+2.70%), pushing the banking index upward.

However, overall trading volume and value dipped, with total volume and value traded down by 29.50% and 18.91%, respectively. Approximately 247.01 million units, valued at ₦7,510.53 million, were traded across 8,305 deals. Access Corp was the highest traded stock in volume terms, accounting for 16.22% of the total, followed by UBA (9.62%), Fidelity Bank (8.63%), UCAP (6.61%), and GTCO (5.97%).

In terms of value, Aradel led, representing 22.34% of total trades. INTENEGINS topped the gainers list with a 10.00% price increase, followed by JOHNHOLT (+9.98%), EUNISELL (+9.88%), THOMASWY (+9.71%), and others. Meanwhile, REGALINS was the biggest decliner, falling 10.00%.

Market breadth was positive, with 30 gainers against 19 losers. Sector performance was mixed: the Banking sector grew by 1.38%, Consumer Goods rose 0.38%, and Industrials edged up 0.01%. The Insurance sector declined by 0.58%, while Oil & Gas remained steady. Overall, NGX market capitalization expanded by N131.65 billion, closing at N59.07 trillion.

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