Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Tuesday, October 29, 2024

Nigeria signs funding deal with IFC to boost naira currency financing

The central bank of Nigeria has signed an agreement with the International Finance Corp to expand local currency financing for Nigerian businesses and cut foreign exchange risks, the agencies said in a statement on Monday.

The IFC, a World Bank Group member, aims to "significantly scale up" its financing in Nigeria, targeting over $1 billion in the coming years, the statement said.

The partnership will enable IFC to manage currency risks and increase its investments in Nigeria's naira currency across agriculture, housing, infrastructure, energy, small and medium-sized enterprises, and the creative industry.

"Many of these sectors require local currency financing, and IFC's partnership with the (central bank) is a key tool in expanding access," the statement said.

By Elisha Bala, Reuters

Friday, October 25, 2024

Nigeria Joins BRICS as Partner Country

Nigeria has officially joined the BRICS economic bloc as a partner country, alongside 12 other nations, marking a significant step in deepening its global economic relations.

The announcement was made at the BRICS summit held in Kazan, Russia, from October 22 to 24, 2024, further consolidating Nigeria’s economic ties with emerging markets.

In addition to Nigeria, the countries now recognized as BRICS partner nations include Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam.

While these nations have not attained full membership status, their inclusion represents a pivotal moment for the bloc as it continues to expand its influence.

A statement on the BRICS official X (formerly Twitter) handle on Wednesday confirmed, “BRICS officially adds 13 new nations to the alliance as partner countries (not full members).”

This decision reflects the bloc’s commitment to fostering cooperation and growth among diverse global economies.

Nigeria’s inclusion comes on the heels of a notable surge in foreign capital inflows from BRICS nations, which soared by 189% in the first half of 2024.

The inflows reached $1.27 billion, compared to $438.72 million during the same period in 2023.

This significant economic boost signals the growing economic synergy between Nigeria and BRICS member states.

The Kazan summit, themed “Strengthening Multilateralism for Fair Global Development and Security,” is the sixteenth annual BRICS meeting and comes at a time of increased global interest in multilateral cooperation. Nigeria’s addition to the bloc as a partner country aligns with its strategic ambitions to deepen economic integration and foster trade with key emerging nations.

The BRICS bloc, originally formed by Brazil, Russia, India, and China (BRIC) in 2009, welcomed South Africa as a full member in 2010, rebranding the group to BRICS. Since then, the organisation has emerged as a powerful coalition of developing economies with an emphasis on fostering trade, investment, development, and security.

This year’s summit was attended by new full members Iran, Egypt, Ethiopia, and the United Arab Emirates, who officially joined BRICS in January 2024.

The inclusion of partner countries like Nigeria and the aforementioned 12 nations highlights BRICS’ ongoing efforts to expand its global reach and strengthen economic ties across continents.

The prospect of Nigeria becoming a full member of BRICS has been a topic of discussion for some time. In November 2023, Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar, indicated the country’s ambition to join BRICS and the G20 group of nations within two years. He emphasized that Nigeria’s large economy and substantial population made it a suitable candidate for such organizations.

Tuggar’s statement reflected the growing recognition of Nigeria’s importance on the global economic stage and its potential to contribute to multilateral organizations like BRICS. As a partner country, Nigeria is now positioned to further leverage its economic strengths and continue building its international partnerships.

By Chioma Kalu, Arise News

Related story: Video - Nigeria among several nations seeking to join BRICS

Tuesday, October 15, 2024

Video - Experts warn of rise in unemployment in Nigeria due to high fuel prices



Nigeria’s informal sector, which accounts for around 80 percent of total jobs has been hit by a wave of resignations, as some workers are unable to afford the daily commute after a hike in fuel prices. Economists said a rise in unemployment could affect the country’s economy and security.

CGTN

Wednesday, October 9, 2024

Nigeria's capital inflow more than doubles to $6bn in first half of year

Foreign capital inflow into Nigeria more than doubled to $6 billion in the first half of 2024 from last year as portfolio investors returned after the west African nation eased currency controls, official data showed on Tuesday.

The National Bureau of Statistics (NBS) said inflows rose to $5.98 billion between January and June this year, up from $2.16 billion during the same period in 2023.

The United Kingdom and Netherlands were the biggest sources of capital, with portfolio investors piling into the country's banking sector.

Nigeria's central bank has allowed the naira currency to freely trade in a bid to boost forex inflows as part of President Bola Tinubu's reforms, which also included slashing petrol and electricity subsidies.

The bank plans to automate foreign currency trades from December to enhance transparency and remove market distortions.

The central bank has hiked interest rates five times this year to head off inflation and attract portfolio investors hungry for yields.

Reuters

Thursday, October 3, 2024

Video - Nigerians skeptical as president pledges investor-friendly policies



Nigerian President Bola Tinubu says the policies he's trying to implement, such as reducing taxes on businesses, will make it easy for investors to come into the country. He has called on citizens to be patient.

CGTN

Friday, September 27, 2024

Video - External reserves surge to 22-month high in Nigeria



The reserves have grown by 13 percent to just over 37 billion U.S. dollars. The increase was driven by crude oil revenues, non-oil exports, and a rise in external borrowings, and could help Nigeria stabilize its currency, improve international trade, and possibly attract more foreign investments.

CGTN

Wednesday, September 25, 2024

Nigeria's central bank surprises with fifth rate hike this year

Nigeria's central bank unexpectedly raised its benchmark lending rate by 50 basis points to 27.25% on Tuesday in a unanimous decision to tame persistent inflationary pressures, bank governor Olayemi Cardoso said.

The move wrongfooted analysts who had expected rates to stay on hold and indicates the bank is prioritizing inflation control over economic growth amid the worst cost-of-living crisis in a generation.

It is the fifth rate hike this year, after increases of 50 basis points (bps) in July, 150 bps in May, 200 bps in March and 400 bps in February which was its largest in around 17 years.

Analysts had expected no rate change after inflation fell for a second consecutive month in August and the naira currency held steady - almost converging on the official and parallel markets - after the bank resumed regular dollar sales to dealers to support the currency.

Central Bank of Nigeria Governor Olayemi Cardoso said the multiple rate hikes so far this year had helped moderate inflation, but pressures lingered.

"The MPC noted that even though headline inflation trended downwards due to a moderation in food inflation, core inflation has remained elevated, driven primarily by rising energy prices," Cardoso said.

"The uptrend poses severe concerns to members, as it clearly indicates the persistence of inflationary pressures."

Inflation fell to 32.15% in annual terms in August, but the slowdown could be short-lived after two petrol prices increases this month that have roiled citizens struggling with the worst cost-of-living crisis in a generation.

"Despite the consistent tightening resolve of the central bank, the effort starts to look very piecemeal in hindsight, when core inflation is still rising and the policy rate is still negative," said Razia Khan, managing director and chief economist for Africa and Middle East at Standard Chartered.

Price pressures have been spurred by the government slashing petrol and electricity subsidies and twice devaluingthe naira since President Bola Tinubu took over last year.

Lingering inflation risk include crop damage due to floods in the north of the country, potentially causing higher food prices due to lower harvest.

"I guess this was bold, this was audacious, and quite frankly, it would probably help to stabilize Naira a little bit. But definitely the cost of borrowing is going to be higher," said Bismarck Rewane, CEO of Lagos-based Financial Derivatives Company.

By Elisha Bala-Gbogbo and Camillus Eboh, Reuters

Monday, September 23, 2024

Video - Nigeria rolls out rice subsidy as economic woes deepen



With inflation hitting a near three-decade high of 33.4 percent in July, millions of Nigerians have struggled to keep up with rising food costs. This subsidy comes as a lifeline for many families teetering on the edge. However, the rice sale is limited to public servants and those with a National Identification Number (or NIN), leaving many out of the program.

CGTN

Monday, September 16, 2024

Video - Nigeria's economic shift



As foreign firms exit Nigeria due to economic challenges, local businesses are stepping in to fill the gaps.

CGTN

Video - Nigeria, China revive $2.4 billion currency swap deal



Nigeria and China have agreed to expand their currency swap agreement, aiming to boost trade in Naira and Yuan, originally signed in 2018. Experts say reducing Nigeria’s trade deficit will be key.

CGTN

Tuesday, September 3, 2024

Dangote Refinery begins petrol production, vows to ease Nigeria’s fuel crisis

The Dangote Refinery, a $20 billion project spearheaded by billionaire Aliko Dangote, has officially begun petrol production, marking a significant milestone in Nigeria’s energy sector.

This development is expected to alleviate the ongoing petrol scarcity that has gripped the nation, offering much-needed relief to millions of Nigerians.

“This refinery will fuel growth, development, and prosperity by supplying energy to our people,” said Aliko Dangote, President of the Dangote Group, during a press briefing on Wednesday.

Dangote expressed gratitude to President Bola Tinubu’s administration for fostering an environment conducive to the success of the initiative.

“I salute the people of Nigeria and President Bola Tinubu’s government for creating the conditions that allowed us to achieve this monumental task. This refinery will drive growth, development, and prosperity by providing energy to our people,” Dangote stated.

He also praised Tinubu for the “Naira for crude, Naira for product” initiative, which he believes will stabilise the Naira by reducing the demand for dollars by 40%.

“As we have this refinery working, it will show the true consumption of Nigeria; we can track every loaded truck and ship,” he said.

He added that the refinery is designed to meet the demands of not only Nigerians but also those in sub-Saharan Africa.

Vanguard

Related stories: Dangote Refinery Presents First Petrol Sample

Nigeria's Dangote refinery set to start gasoline output in September

Monday, September 2, 2024

Video - Nigeria records surge in remittances from its diaspora



Compared to the same period last year, inflows from the Nigerian diaspora rose by 130 percent in July to reach 553 million U.S. dollars. Analysts said the growth was driven by central bank-backed initiatives and the expansion of licensed international money transfer operators.

CGTN

Wednesday, August 28, 2024

Video - Experts in Nigeria call for formal recognition of its informal economy



Business experts in Nigeria also want simpler government policies and better access to financing to boost the sustainability and survival of the informal sector. Nigeria’s informal sector provides more than 80 percent of jobs in the country and contributes 46 percent to the nation's GDP.

CGTN

Wednesday, August 21, 2024

Video - Nigerian business owners count losses following anti-government rallies



Demonstrators took to the streets in early August to voice their dissatisfaction with perceived poor governance and to demand the reversal of certain policies. The protests, which at times threatened to become violent, led many people to stay indoors, significantly impacting local businesses.

CGTN

Related story: Nigeria holds youth summit on national security after protests

 

Thursday, August 15, 2024

Nigeria Inflation Slows for First Time in Almost Two Years

Nigeria’s annual inflation decelerated for the first time in almost two years, providing some respite to consumers who have become increasingly frustrated by the high cost of living.

Consumer prices rose 33.4% in July from 34.2% a month earlier, according to data published on the website of the National Bureau of Statistics on Thursday. The median estimate of eight economists in a Bloomberg survey was 33.35%.

The reading, and expectations that inflation will continue to ease, could see monetary policymakers leave interest rates on hold at their next meeting in September, after lifting borrowing costs by 15.25 percentage points to 26.75% since 2022.

Central bank Governor Olayemi Cardoso has repeatedly said that policymakers are committed to defeating inflation, while suggesting last month that rates could come down in the not-too-distant-future if price pressures moderated.

What Bloomberg Economics Says…

“Nigeria’s inflation has begun what will likely be a protracted slowdown. A stabilizing naira and high base effect will help temper price gains over the next several months. Moderating inflation — and weak growth — warrant ending the rate-hiking cycle and holding the policy rate stable at 26.75% until the end of 2024.”

— Yvonne Mhango, Africa economist. Click here to read more.

Inflation is expected to continue to cool because of plans to reduce the cost of food, including a 180-day window to import wheat and corn duty free, and as the impact on prices of a currency devaluation and partial removal of fuel subsidies last year recede. The measures were part of reforms introduced by President Bola Tinubu after he took office in May 2023 to attract investors, float the currency and ease budget pressures.

The slowdown will also be welcome by Nigerians angered by high inflation. Crowds chanting “we are hungry” marched through the streets of several cities earlier this month demanding the government fully reinstate fuel subsidies, cut electricity tariffs and reduce duties on imports. A clampdown by security forces left at least 13 dead.

The main driver of the deceleration was food inflation. It slowed to 39.5% from 40.9% in June. Core price growth, which excludes agricultural produce and energy, quickened slightly to 27.5% from 27.4% a month prior. 

Ruth Olurounbi, Bloomberg

Related story: Nigeria spirals into deadly anti-inflation protests - 13 Killed

Monday, August 5, 2024

Family of killed Nigerian protester demand justice

The family of a 24-year-old tailor, Abubakar Adam Abdullahi, is demanding justice after accusing police of killing him in the northern Nigerian city of Kaduna during nationwide protests against the high cost of living.


Local police deny playing any role in his death, and a spokesman for the governor of Kaduna state says they are not aware of any deaths resulting from protests there.

This is contested by rights group Amnesty International - which says three people have been killed in Kaduna alone.

Speaking on behalf of the family, Abubakar's brother Ismail told the BBC the tailor was shot in the chest by police on Thursday before dying in Yusuf Dantsoho hospital.

"All we want is justice for our brother," says Ismail.

Across Nigeria - in the five days since the demonstrations began - police say at least seven people have been killed, 700 have been arrested, and elite officers have arrested one of the protest leaders.

Despite warnings by President Bola Tinubu, thousands of Nigerians joined the protests - worried about the escalating cost of living, and inspired by the success of young Kenyans whose rallies have won key concessions from government.

The protesters included Abubakar. The youngest of 14 children, he was living at his parents' home in Kaduna with big ambitions for his career, and hoping to start a family of his own.

But rising costs kept pushing that future further from his reach, and he decided to join the protests.

"As a tailor, money for the materials he was using had all gone up - food too - and he also has to pay increased rent. Everyone is affected by this economic crisis," says Ismail.

Video footage filmed at the time of Abubakar's death seems to shows him in a group of young men shouting animatedly at police before trying to run away as if being chased.

According to Abubakar's brother, who has spoken to witnesses, they were close to the office of the governor of Kaduna, Uba Sani, at the time. Abubakar then told his friends he was tired and wanted to go home.

Moments later police opened fire on the protesters, witnesses say.

Video footage then shows Abubakar falling to the ground. His friends can be heard shouting "officer stop" and "they shot him" in the Hausa language.

"It was shocking when we got a call to come to the hospital after he was shot because we know he wasn't violent," Ismail tells the BBC.

He cannot comprehend how this could happen to the kind, caring and hard-working brother he knew.

"We later saw videos of him sitting or talking to friends during the protest which also proved he wasn't misbehaving," he adds.

Kaduna state governor spokesman Mohammed Lawal Shehu says the reason why they have not acknowledged any death from the protest is because they are relying on the police - who say they were no deaths.

"According to the police there wasn’t any death from the protests and we rely on them for information."

Amnesty International is calling for an investigation into the deaths of 23 protesters it says have been killed across the country, including three in Kaduna.

Ismail says his family will not rest until they get answers about his brother's death.

"He was in high spirits when he went out with his friends to the protest. He was concerned by the state of things in the country."

Mansur Abubakar, BBC

Related story: Protests in Nigeria fizzle out after deadly police crackdown

Protests in Nigeria fizzle out after deadly police crackdown

Protests in Nigeria over the soaring cost of living ebbed on Monday, with only a few hundred people turning out in major cities following a deadly crackdown by security forces since the demonstrations began last week.

Hundreds of thousands of people have taken to the streets in the capital Abuja, Lagos and other big cities during the protests against economic hardship and crime, which started on Thursday and were meant to continue until Aug. 10.

Amnesty International said at least 13 people have been killed in clashes with police since the start of the protests, which were dubbed "#10DaysOfRage". Police put the death toll at seven, saying some of the fatalities were caused by accidents and an explosive device.

A tough police response and a call for a protest pause by President Bola Tinubu appeared to have dampened the demonstrations, which came weeks after data showed annual inflation hit a 28-year high of 34.19% in June.

In the commercial hub of Lagos, where demonstrations have been largely peaceful, about 100 people gathered at the protest venue singing and chanting "we are hungry". In Abuja, there were no signs of protests at the main stadium where protesters have been gathering since Thursday.

In the north of the country, about 200 protesters were dispersed by armed security forces in Maiduguri, capital of Borno state, while in Katsina, security forces fired teargas at protesters who were chanting "hunger and insecurity are killing us".

Curfews have been imposed in parts of the north, which has seen some of the largest and fiercest protests, and in the central state of Plateau.

On Sunday, Tinubu called for an end to violence and said he was always open to dialogue.

Tinubu, in office since May 2023, defended his economic reforms, which have included a partial end to costly petrol and electricity subsidies and devaluation of the naira, as necessary to reverse years of economic mismanagement. 

By Seun Sanni, Reuters

Related story: Citizens protest cost of living in Nigeria

Citizens protest cost of living in Nigeria



The demonstrations continued in Nigeria for a second day. Protesters say they're also demanding better wages and improved governance.

CGTN

Related stories: Nigeria spirals into deadly anti-inflation protests - 13 Killed

President Tinubu calls for end to protests against economic hardship in Nigeria

Nigeria spirals into deadly anti-inflation protests - 13 Killed

In this northern city, the second most populous in Nigeria, protesters have been converging at the city center and making their way to Government House, seat of the state governor.

Thousands of protesters, decrying rampant inflation, chanting anti-hardship songs, and carrying placards with strident messages for the government of President Bola Tinubu, are calling for the return of a popular fuel subsidy whose removal is seen as a key trigger for rising prices.

While protests are not unusual in Nigeria, it’s less common in the predominantly Muslim north outside of university campuses. Now this level of the protests and sheer numbers of protesters in the big cities of northern Nigeria have caught onlookers, participants, and authorities off guard.

The protests have been passionate and persistent, and the response by security forces has been deadly. Even though the “End bad governance” protests have been nationwide, the 13 people killed as of Saturday Aug. 3 were in three northern states, according to Amnesty International. Police said seven of those people were killed in an explosion rather than in clashes with security forces. The government claims that the peaceful protests have been infiltrated by thugs who broke into stores to loot food items and other valuables.

Curfews have been imposed in Kano and other northern states including Jigawa, Katsina and Borno. One of the protest coordinators in Kano, Abba Bello Abba of the Nigerian Patriotic Front, said “we will continue with the protest once the curfew is lifted, we will continue to do this until our demands are met”.

While most protesters were raising placards and Nigerian flags, there was a smattering of other protesters spotted waving Russian flags and chanting “Putin!” in support of the Russian leader.


Know More

Northern Nigeria, especially the northwest and the northeast, has suffered from insecurity with attacks on civilians and kidnappings, which have led to the displacement of tens of thousands of people. That’s exacerbated long-standing challenges with poverty and unemployment in a vast area that makes up more than half the country.

It means efforts by the government to push through difficult policies such as the fuel subsidy removal and allowing the naira to float freely, while causing economic pain for almost all ordinary Nigerians, have been particularly harsh for those in the north of Nigeria.

People of all ages have taken part in the mostly peaceful protests. Binta Adamu Sheshe, 70, said: “I am forced to join the protest as I have nothing to eat as I speak to you now, my earning a month is 20,000 naira ($12) as a casual staff in a hospital, what will do that for me in this hardship, we need to have fuel subsidy returned.”

The View From Aso Rock

On Sunday morning, President Tinubu made his first public statements since the protests began, calling on Nigerians to suspend the widespread protests. He suggested that the protests had been politically motivated but acknowledged that ordinary citizens were going through a tough time. “I am especially pained by the loss of lives in Borno, Jigawa, Kano, Kaduna and other states, the destruction of public facilities in some states, and the wanton looting of supermarkets and shops, contrary to the promise of protest organizers that the protest would be peaceful across the country.”

Tinubu, who touted some of his administration’s achievements to help turn things around such as creating jobs, said he had heard the protesters “loud and clear”, and that he understood the pain and frustration behind their actions. “But we must not let violence and destruction tear our nation apart.”

By Hamza Ibrahim, Semafor

Related stories: President Tinubu calls for end to protests against economic hardship in Nigeria

Frustrated Nigerians vow 'days of rage' as hardships mount

President Tinubu calls for end to protests against economic hardship in Nigeria

Nigeria's President Bola Tinubu called on Sunday for a suspension of protests against a cost of living crisis, saying this would create an opportunity for dialogue, his first public comments since frustrated citizens took to the streets last week.

Amnesty International has said at least 13 people were killed in clashes with security forces on the first day of protests on Thursday. Police denied using excessive force and said seven people had died as of Saturday - four from an explosive device during a march in northeast Borno state, two who were hit by a car and another who was shot by a guard when protesters looted a shop.

In a televised broadcast, Tinubu called for an end to violence in several states since the protests started, saying he was always open for dialogue.

"My dear Nigerians, especially our youth, I have heard you loud and clear. I understand the pain and frustration that drive these protests, and I want to assure you that our government is committed to listening and addressing the concerns of our citizens," he said.

Nigerians have been mobilising online to organise protests against economic hardship and bad governance and have called for a cut in petrol prices and electricity tariffs, among several demands.

Tinubu, in office since May 2023, defended his economic reforms, which have included a partial end to petrol and electricity subsidies and devaluation of the naira, as necessary to reverse years of economic mismanagement.

He government revenues had more than doubled to 9.1 trillion naira ($5.65 billion) in the first half of this year while 68% of revenue now went to debt servicing, down from 97% before he took office in May last year.

The government was also ramping up spending on infrastructure projects, started a loan scheme for university students and was building thousands of housing units across Nigeria's 36 states, the president said.

"But we must not let violence and destruction tear our nation apart," said Tinubu. 

By Felix Onuah, Reuters 

Related stories: Nigeria security forces deploy, government offers dialogue as protests loom

Frustrated Nigerians vow 'days of rage' as hardships mount