Naira among worst performing currencies in Africa – World Bank

The Nigerian Naira is among the worst-performing currencies in sub-Sahara Africa at the end of August 2024.

The World Bank disclosed this in its latest edition of Africa’s Pulse report.

Report showed that the Naira is at par with the Ethiopian Birr, and South Sudanese Pound in terms of decline in the region.

The report blamed the continued increase in the demand for dollars and limited dollar inflow for Naira depreciation in the last months.

According to the report, the Naira lost about 43 percent as of August.

“By August 2024, the Ethiopian birr, Nigerian naira, and South Sudanese pound were among the worst performers in the region.

“The Nigerian naira continued losing value, with a year-to-date depreciation of about 43 percent as of end-August.

“Surges in demand for US dollars in the parallel market, driven by financial institutions, money managers, and non-financial end-users, combined with limited dollar inflows and slow foreign exchange disbursements to currency exchange bureaus by the central bank explain the weakening of the naira,” it said.

The Naira weakened significantly on Tuesday to N1658.97 per dollar from N1552.92 exchanged on Monday.

In the past months, the Naira has continued to fluctuate against the dollar in the foreign exchange market despite interventions by the Central Bank of Nigeria.

Nigeria’s inflation rose to 32.70 percent in September from 32.15 percent recorded in August 2024.

Despite this, the World Bank’s Economic growth in Nigeria is projected at 3.3 percent in 2024 and 3.6 percent in 2025–26.

Naira appreciates to N1,680 per dollar in parallel market

The Naira at the close of workday Monday, October 14 appreciated to N1,680 per dollar in the parallel market compared to N1,690 per dollar over the weekend.

Following the same vein, the Naira appreciated to N1,552.92 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM as data from FMDQ showed that the indicative exchange rate for NAFEM fell to N1,552.92 per dollar from N1,641.27 per dollar last weekend, indicating a massive N88.35 appreciation for the naira.

This happened even as the volume of dollars traded (turnover) in the official market declined by 44 percent to $343.71 million from $616.73 million traded last week Friday.

Cooking Gas price increases to N1500/kg

The price of Liquefied Petroleum Gas, also known as cooking gas, has increased to N1,500/kg.

According to the Managing Director/Chief Executive Officer of NIPCO Plc, Suresh Kumar,
over 60 per cent of cooking gas consumed in Nigeria is being imported therefore the emergence of
Dangote refinery and other domestic refineries would bring down the price of cooking gas .

However, on Sunday, October 14, the prices of cooking gas peaked at N1,500/kg in retail outlets in Ogun and Lagos States while in Abuja, the average price for refilling a 12.5kg cylinder of cooking gas has increased by 41.6 per cent to N17,000 in different areas.

This sharp price rise has implications for consumers, many of whom rely on LPG for their daily cooking needs.

Speaking at the just-concluded National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers 2024, held in Lagos, Kumar, revealed that local production of LPG remains inadequate, urging the Federal Government to encourage Chevron to convert more of its propane output into butane.

“Currently, less than 40 per cent of the 1.5 million metric tonnes consumed domestically is produced locally. This is why the government must encourage companies like Chevron to convert more of their propane output into butane, which is more suitable for domestic use,” he explained.

“With the Dangote refinery and other refineries now sourcing crude oil in local currency, the volume of LPG produced locally is expected to increase, which will, in turn, drive down the price of the commodity,” the MD explained.

He added, “There is hope that the reliance on imported LPG will decrease, which will positively influence the prices at which the product is sold domestically. Greater local production will make LPG more affordable since it reduces exposure to foreign exchange fluctuations and international pricing dynamics.”

𝐍𝐋𝐂 𝐩𝐫𝐞𝐬𝐢𝐝𝐞𝐧𝐭 𝐜𝐨𝐧𝐝𝐞𝐦𝐧𝐬 𝐟𝐮𝐞𝐥 𝐩𝐫𝐢𝐜𝐞 𝐡𝐢𝐤𝐞

The President of the Nigeria Labour Congress, Joe Ajaero, has queried the decision of the Nigerian National Petroleum Company Limited, NNPCL, to decide the fuel pricing for Dangote Refinery.

Ajaero remarked while condemning NNPCL for increasing the pump price of fuel.

NNPCL had increased the retail price of petrol to N1,030 from N897 per litre in the Federal Capital Territory, FCT.

Speaking in Abuja on Wednesday, Ajaero said: “As we are sitting down here, they have gone to increase the pump price of petroleum again. Now what do you do in such instances?

“They expect us to buy it. Even, things we have been asking for; CNG as an alternative; for more than one year, we have been asking for the commencement of work at the Port Harcourt refinery; we had an agreement to that effect—NLC, TUC, and the federal government.

“We have heard that Dangote Refinery is producing locally and prices are going up. All the indices they gave to us about the need to deregulate have proven negative. You are fixing prices as a private company.

“As far as I’m concerned, except something has happened to CAC, NNPCL is now a private company. Can that same NNPCL dictate the price for Dangote and other private companies? Those are issues, those are questions begging for answers.”

NNPCL increases fuel pump price

The Nigerian National Petroleum Company Limited, NNPCL, has again jerked up the pump price of the Premium Motor Spirit, PMS, also known as petrol to N1,030 per litre.

The development was observed by our correspondent at some NNPCL outlets in Abuja on Wednesday.

The recent development came after the NNPCL decided to terminate its exclusive purchase agreement with Dangote Refinery.

This means the NNPCL will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery.

In the Federal Capital Territory, FCT, the product was previously sold for N897 per liter.

Our correspondent further gathered that in Lagos, fuel which previously sold for N885 per litre, is now being sold at N998 amid long queues.

Higher interest rate is necessary to check inflation – CBN Governor

The Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, has defended the bank’s decision to raise the Monetary Policy Rate to 27.25 per cent, describing it as a necessary move to control inflation and curb excess money in circulation.

This is according to a press statement from the apex bank on Sunday.

Speaking during an address at the Harvard Club of Nigeria over the weekend, Cardoso emphasised that the rate hike, while tough on borrowers, is crucial for the country’s economic stability.

“Our decision to raise the Monetary Policy Rate to 27.25 per cent was a bold move. Higher interest rates, while painful for borrowers, are necessary to curb excess money in circulation and control inflation. Leadership is about making hard choices to secure long-term stability over short-term comfort in moments like these,” Cardoso said.

He noted that the CBN’s focus on core objectives, such as containing inflation, restoring credibility, and building public trust in the financial system, is critical to any meaningful recovery.

Cardoso’s remarks came as he reflected on his tenure as the head of the CBN, marking one year in office. He pointed out that trust is at the core of central banking, and without it, the effectiveness of the bank’s policies would diminish.

The CBN governor also said the introduction of the Electronic Foreign Exchange Matching System is a key initiative to enhance transparency and restore market confidence.

“Trust is the currency of central banking. If the public loses trust in the institution, the efficacy of its policies diminishes. Our decision to implement the Electronic Foreign Exchange Matching System is rooted in this understanding.

“By enhancing transparency and providing more accurate oversight of forex transactions, we send a strong signal that the CBN is serious about fair and efficient markets,” he said.

Cardoso also revisited the bank’s controversial decision to float the naira, a move that was met with public criticism.

He explained that the decision was necessary to bring the official exchange rate closer to market reality and reduce speculative trading.

He asserted that the move had started stabilising the currency markets and reducing speculative trading.

While the CBN has yet to fully achieve its inflation targets, Cardoso expressed optimism, citing recent reports from the National Bureau of Statistics (NBS), which showed inflation had begun to decline in July and August 2024.

He acknowledged that the bank’s policies are gradually steering the economy in the right direction, though challenges remain.

The price of electricity is still the cheapest in Nigeria compared to other African nations – Minister of Power Adebayo Adelabu

The Minister of Power, Adebayo Adelabu, has asserted that electricity prices in Nigeria are the lowest compared to other African countries. Adelabu made this statement on Thursday, October 3, during a meeting with the Secretary of the Lottery Trust Fund, Tosin Adeyanju, at his office in Abuja.

In his remarks, Adelabu emphasized that Nigeria, along with the rest of the world, are currently facing two critical challenges: food security and energy security. He stated, “All over the world today, we are faced with two basic issues and these are food and energy securities.”

Highlighting the price of electricity in Nigeria, he remarked, “It is worth noting that the price of electricity is still the cheapest in Nigeria compared to even other African nations.”

Adelabu urged Nigerians to be patient, assuring them that the government is committed to their welfare. “If Nigerians are patient, they will realize that the government means well for them,” he added.

Nigerian Discos lose N28.97bn to unpaid electricity bills in July – NERC

The eleven Electricity Distribution Companies in Nigeria have lost N28.97 billion to unpaid electricity due to customers in July 2024.

The Nigerian Electricity Regulatory Commission disclosed this on Thursday in its Commercial Performance of Discos Factsheet for July 2024.

This figure represents 17.74 percent of the total bills to electricity customers in the period under review.

Meanwhile, the Discos recorded 82.26 percent electricity bill collection efficiency and earned N162.12 billion from N197.11 billion issued bills in July 2024.

The NERC’s data showed that Ikeja, Eko and Abuja Discos collected the highest bills of N33.98 billion, N28.35 billion and N25.16 respectively in the period under review.

On the flip side, Aba Disco recorded the lowest electricity bill of N1.34 billion in July 2024.

This comes as Nigerians still grapple with inadequate power supply, with an average of 5000 megawatts for an estimated population of over 250 million.

Nigerian government announces release of N78bn loan to small businesses

The Nigerian government through the Bank of Industry, BoI, said it disbursed loans amounting to N77.65 billion to businesses especially medium, small and micro-enterprises, MSMEs, in the last nine months of 2024.

The Managing Director of BoI, Olasupo Olusi, disclosed this at an event held on Wednesday in Abuja.

He revealed that the loans were given to MSMEs across the country.

He stressed that MSMEs remained the bedrock of Nigeria’s economy.

According to him: “MSMEs which represent 90 per cent of all businesses, contribute 80 per cent to employment and 50 per cent to Nigeria’s Gross Domestic Product.

“So far this year, the bank has supported MSMEs across the country through the disbursement of loans totaling about N77.65bn. These loans were given to almost 1,000 MSMEs across the country to enable them to boost their operations. Those who have benefitted through several of our financing facilities range from the local palm kernel oil processor in the east to the woman with a printing press in the north and a local furniture maker in the south, amongst others.”

This comes as the majority of Nigerians grapple with economic hardship occasioned by high inflation which stood at 32.15 per cent in August 2024.

Diesel import into Nigeria increases by 22.66 percent

The import of Automotive Gas Oil (Diesel) into Nigeria increased by 22.66 percent to 4.94 billion liters in 2023 from 4 billion liters in 2022.

The National Bureau of Statistics disclosed this in its latest Petroleum Products Distribution Data released recently.

The data also showed that 109.39 million liters of Diesel were locally produced in 2023, compared to 102.47 million liters reported in 2022.

This represents a 6.76 percent growth rate in locally produced diesel in Nigeria.

Comparatively, Nigeria heavily depends on the import of diesel to meet its consumption demand based on the NBS data for 2023.

On the other hand, the Data also showed that the import of Premium Motor Spirit (petrol) dropped 13.77 percent to 20.30 billion liters in 2023 compared to 23.54 billion liters in 2022.

Recall that in April 2024, Dangote Refinery commenced the domestic sale of diesel in Nigeria.

Naira drops against dollar ahead of Nigeria’s 64th Independence Day holiday

The naira depreciated slightly against the dollar at the foreign exchange market ahead of Nigeria’s 64th Independence Day holiday on Tuesday.

FMDQ data showed that the naira closed at N1541.94 per dollar on Monday from N1540.78 exchanged on Friday last week, losing N1.16.

Meanwhile, the naira remained flat and unchanged at N1700 per dollar exchange recorded at the black market last Friday.

This comes as foreign exchange transaction turnover dropped further to $181.86 million on Monday from $213.3 million recorded on Friday, according to FMDQ data.

In the last two days of last week, the naira gained N126 against the dollar at the official FX market.

World Bank approves fresh $1.57bn support fund for Nigeria

The World Bank has approved three operations for a total of $1.57bn to support Nigeria in strengthening human capital through better health for women, children, and adolescents and preventing the effects of climate change by improving dam safety and irrigation.

The new fund includes $500m for addressing governance issues that constrain the delivery of education and health (HOPE-GOV), $570m for the Primary Healthcare Provision Strengthening Program (HOPE-PHC) and $500m for the Sustainable Power and Irrigation for Nigeria Project (SPIN).

In support of FG’s newly launched reforms in the health sector, the World Bank said under the Health Sector Renewal Investment Initiative, the HOPE-PHC project will improve the quality and utilisation of core reproductive, maternal, newborn, child, and adolescent health and nutrition services to substantially reduce maternal and under-five mortality and to improve the resilience of the health system— benefiting 40 million people, especially vulnerable populations.

The project is financed by a concessional $500m International Development Association (IDA) credit and an additional $70m in grant financing from the Global Financing Facility for Women, Children and Adolescents (GFF).

“Effective investment in the health and education of Nigerians today is central to increasing their future employment opportunities, productivity, and earnings while reducing poverty of the most vulnerable. This new financing for human capital and primary healthcare will help to address the complex difficulties faced by Nigerians, especially women and girls around access and quality of services, but also the governance arrangements that also explain these difficulties” said Dr. Ndiamé Diop, the World Bank Country Director for Nigeria.

“The SPIN program is timely and will protect Nigerians from floods and droughts in the areas where it will be implemented while enabling an increase in hydropower generation. The direct positive impact of this project on people and livelihoods is enormous, The World Bank is pleased to work with the government and other stakeholders to deliver this program,” Diop added.

Multiple interest rate hikes has restored confidence in Naira – Cardoso

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN) has said that multiple interest rate hikes have restored confidence in the naira.

Speaking at a press conference after the monetary policy committee’s (MPC) 297th meeting in Abuja, Cardoso highlighted how the consecutive interest rate hikes encouraged people to view the currency differently.

“There was a situation where exchange rate was really running at an incredible pace and people were beginning to lose confidence in the currency,” Cardoso stated. “We believe that these multiple hikes have helped for people to now begin to take a different look at their currency, and there is a greater incentive to hold naira as opposed to a situation that we had before where this was not the case.”

The MPC has raised the monetary policy rate (MPR) from 22.75 percent in February to 27.25 percent in September this year, a move aimed at moderating inflation and stabilizing the naira.

Nigeria’s external reserves hit a 22-month high of $37.39 billion – CBN

Nigeria’s external reserves, which represent the country’s stock of foreign currency, have reached a 22-month high of $37.39 billion as of September 19, 2024.

Data from the Central Bank of Nigeria (CBN) revealed that as of September 19, 2024, the reserves hit the highest level since November 4, 2022, when it stood at $37.36 billion.

On a year-to-date basis, the country’s external reserves rose by $4.37 billion from $33.02 billion recorded at the start of the year on January 2, 2024.

The development showed a recovery in Nigeria’s foreign currency position in the period under review.

This comes as the Naira stood at N1544.02 and N1663 per dollar at both official and parallel foreign exchange markets last Friday.

The Central Bank of Nigeria will during the 297th Monetary Policy Committee on Monday and Tuesday decide on whether to continue interest rate hikes or pause.

CBN confirms implementation of controversial 0.005 Cybersecurity levy on transactions

The Central Bank of Nigeria, CBN, has confirmed the enforcement of the controversial cybercrime levy at 0.005 percent on all electronic transactions under its new guidelines for the 2024-2025 fiscal year.

Apex Bank disclosed this in its recently released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025.

The development comes after the levy was purportedly suspended after it sparked debate among Nigerians.

The Cybercrime (Prohibition, Prevention, etc.) Act of 2015, is aimed at bolstering the nation’s cyber security infrastructure.

Meanwhile, the percentage has been reduced from 0.5 percent earlier announced in May 2024 to 0.005 percent in the new guidelines.

CBN reaffirmed its commitment to mandating banks and other financial institutions deduct the levy from all electronic transactions.

The revenue generated from this levy is directed towards a cybersecurity fund, intended to support measures that safeguard Nigeria’s banking system from the growing threat of cyberattacks.

“The CBN shall continue to enforce the payment of the mandatory levy of 0.005 percent on all electronic transactions by banks and other financial institutions, by Cybercrime (Prohibition, Prevention, etc.) Act, 2015″, the document said.

Recall that in a notice in May, the CBN mandated all banks in Nigeria to collect and remit a 0.5 percent cyber security levy to the office of the National Security Adviser.

However, amid outrage over the levy, President Bola Ahmed Tinubu ordered its suspension.

Major Marketers to import 141million litres of petrol

Three major oil marketers in the country are expecting vessels of imported petrol this week despite the availability of petroleum from the local Dangote refinery.

According to Punch, the dealers said about 141 million litres of PMS are being conveyed to Nigeria by vessels following the full deregulation of the downstream oil sector by the Federal Government.

The marketers said that the recent hike in the pump prices of petrol produced by the Dangote Petroleum Refinery and released by the Nigerian National Petroleum Company Limited, NNPCL, on Monday, September 16, has allowed room for PMS imports.

The move comes as the Nigerian Midstream and Downstream Petroleum Regulatory Authority declared that all imported PMS would be subjected to at least three major tests by the agency before being allowed for sale across the country.

Recall that on Monday, the NNPC announced that it would sell the petrol refined at the Dangote refinery at a price above N1,000/litre in the north. The lowest price, according to the NNPC, is N950 in Lagos and its environs.

A major marketer confirmed to the publication that the deregulation of the sector had fully started as he and his colleagues are expecting their products (PMS) this week.

The marketer reportedly stated that each vessel would bring in about 35,000 metric tonnes of PMS.

“Most marketers often import three parcels for this kind of transaction and the lowest parcel is about 35,000 metric tonnes of PMS. Now, because of how the business is run, you see marketers bringing in between two and three parcels. The marketer told the publication.

“This week, we expect about three marketers to bring in products. However, some of these imports are not cast in stone, in the sense that the influence of many regulatory authorities is still there. So it is not that you will just go and bring in products and you then start to sell them.

“The regulators, such as the NMDPRA, have to look at the quality, flash points and so many other things that should be taken into consideration before the product comes in. And when it lands, they will take samples and check them in their labs,” the marketer stated.

Asked if the three parcels of each of the marketers would land this week, the dealer replied;

“All of them are not going to bring in the three parcels at the same time. They bring in a parcel first and later, say in one week’s time or so, another parcel comes in. All these imports have storage implications.

“It is not something you do in a day. You can’t bring in one vessel today (Tuesday) and you bring in another one on Saturday. No, it is not done like that. This is not the importation of 20,000 or 30,000 litres of PMS.”

CBN reveals three dangers to Nigeria’s External Reserves

The Central Bank of Nigeria has revealed that lower crude oil earnings, fuel subsidy removal, lower import bills and increased external debt servicing obligations are potent dangers for the country’s external reserves growth by the 2024/2025 fiscal year.

The apex bank disclosed this in its Monetary, Credit, Foreign Trade and Exchange Policy guidelines for fiscal years 2024/2025.

According to CBN, lower crude oil earnings, fuel subsidy removal, lower import bills and increased external debt servicing obligations are major determinants of the overall economic growth of Nigeria.

CBN, however, projected that Nigeria’s external sector in 2024/2025 is optimistic, on the expectation of favorable terms of trade, occasioned by sustained rallies in crude oil prices and an improvement in domestic crude oil production.

“The positive outlook is supported by the sustenance of crude oil price, propelled by the decision to cut production, and gains from capital flows and remittances.

“However, lower crude oil earnings, fuel subsidy removal, rising import bills, and increased external debt servicing obligations could pose downside risks for the accretion to external reserves.

“In addition, the sustained monetary policy tightening by central banks across advanced economies increases the risk of capital outflow,” it said.

This, the CBN said, would retain Ways and Means to the Federal Government at 5 percent in the period under review.

Nigeria’s external reserves stood at $36.865 billion as of September 12, 2024, according to CBN data.

Trump unveils new cryptocurrency platform

Former US president Donald Trump along with his sons and entrepreneurs late Monday launched a cryptocurrency platform but provided few details.

Little was revealed about the Trump family crypto project during a two-hour online presentation other than an offer to let people buy digital “tokens” giving them a vote in platform decisions.

The event went ahead as planned despite an apparent assassination attempt against Trump on Sunday at his golf club in West Palm Beach, Florida.

World Liberty Financial intends to offer services based on so-called decentralized finance, a mechanism that eliminates the need for an intermediary such as a bank to carry out transactions with a third party, the politics-laced discussion indicated.

Decentralized finance, or DeFi, is based on so-called blockchain technology, which keeps a theoretically open but tamper-proof record of transactions.

World Liberty Financial will enable users to lend or borrow cryptocurrencies to or from one another, a service already offered by many platforms, one of the best-known of which is Aave.

The former president’s son Donald Trump Jr. touted this as “the start of a financial revolution,” during a session streamed on X, formerly Twitter.

Zachary Folkman and Chase Herro, the linchpins of the project and established cryptocurrency entrepreneurs, said the platform would primarily use “stablecoins”, which are backed by a traditional currency, most often the dollar.

As a result, they are free from the sometimes brutal fluctuations experienced by digital currencies untethered to real-world money.

World Liberty Financial wants to attract the masses to cryptocurrencies, creating a platform easily accessible to people, Folkman said.

Project leaders said they would sell tokens that give owners the right to take part in the governance of the platform, with 63 per cent of them offered to the public, 20 per cent going to the founding team and the rest set aside as rewards for users.

No timetable for the project was disclosed.

During his presidency Trump referred to cryptocurrencies as a scam, but has since radically changed his position, presenting himself as a “pro-bitcoin president” if elected in November.

In so doing, he is standing in opposition to the Biden administration, which is seen as a proponent of regulating the sector.

NNPC announces increase in pump price of petrol at its retail stations

The Nigeria National Petroleum Corporation NNPC has announced an increase in petrol pump price.

In a statement released in the wee hours of today September 16, the corporation stated that the pump price of petrol lifted from the Dangote refinery and sold at its retail stations is put at N950.22 per litre, N1,019 per Litre in Borno, N992.22 per Litre in FCT.

In the statement released by its Chief Corporate Communication Officer, Olufemi Soneye, the corporation stated that in line with the provisions of the Petroleum Industry Act (PIA), PMS prices are not set by the Government, but negotiated directly between parties on an arm’s length. The statement added that it is paying Dangote Refinery in USD for September 2024 PMS offtake as Naira transactions will only commence on October 1st, 2024.

The NNPC Ltd added that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100% to the general public. NNPC began lifting petrol from the Dangote refinery on Sunday, September 16.

See the estimated pump prices of PMS (obtained from the Dangote Refinery) across NNPC Retail Stations in the country, based on September 2024 pricing.

NNPC announces increase in petrol price to N950.22 per litre in Lagos

NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote Refinery, Based on September 2024 Pricing

The NNPC Ltd has released estimated prices of Premium Motor Spirit (PMS), also known as Petrol (obtained from the Dangote Refinery) in its retail stations across the country.

The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act (PIA), PMS prices are not set by Government, but negotiated directly between parties on an arms length.

The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.

The NNPC Ltd assures that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100% to the general public.

Attached to this statement are the estimated pump prices of PMS (obtained from the Dangote Refinery) across NNPC Retail Stations in the country, based on September 2024 pricing.

Olufemi Soneye

Chief Corporate Communications Officer

NNPC Ltd

Abuja

16th September, 2024