Nigerian forward Victor Osimhen became the first African player to win the Italian Serie A Golden Boot after his 26 goals powered Napoli to the Scudetto. Osimhen is also the first player since 2009 to win the Italian Golden Boot and Scudetto in the same season. His record-breaking achievements sparked celebrations in one small community in Lagos.
Monday, June 12, 2023
Video - Community in Lagos celebrates Osimhen's record season in Football
Eurobonds rise in Nigeria after suspension of Central Bank governor
Nigeria’s sovereign dollar-denominated bonds rose sharply as overseas investors welcomed the suspension late last week of Central Bank governor Godwin Emefiele, who oversaw multiple exchange rates that unsuccessfully sought to keep the naira strong.
The price of the West African oil producer’s eurobonds rose on Monday as much as 2.6 cents in the dollar before moderating slightly with many issues reaching their highest prices since late January, according to the Reuters news agency.
Longer-dated maturities saw the biggest gains with the 2049 maturity up 2.353 cents to 80.231 at 07:46 GMT, according to Tradeweb data.
Nigeria is facing severe dollar shortages, forcing many people to seek out foreign currency on the black market, where the naira trades much lower than its official exchange rate.
“We believe the changes signal a new era of focused, predictable monetary policy and a shift towards non-interventionism in the foreign-exchange regime,” Barclays economist Michael Kafe said in a note to clients on Monday about the suspension of the Central Bank chief.
President Bola Tinubu had criticised Emefiele’s handling of the naira and monetary policy at his inauguration two weeks ago.
Tinubu, who has promised to reset Nigeria’s ailing economy, has also removed a fuel subsidy and promised to consolidate the multiple exchange rates.
“The haste with which the newly appointed president has begun to tackle the country’s economic challenges (e.g. the immediate removal of the fuel subsidy…) suggests that he is keen to pursue all the difficult reforms at the early stages of his term,” Kafe wrote.
Folashodun Shonubi, a deputy governor, was named acting head of the Central Bank.
The suspended governor is now in custody and under investigation, police said on Saturday.
In December, a court order blocked Emefiele’s arrest for suspected “terrorism financing”, saying there was a lack of evidence. It remains unknown if the arrest at the weekend is for the same charge.
Friday, June 9, 2023
Video - Parents pay school fees with recyclables in Nigeria
A school in Lagos, Nigeria accepts recyclable trash for tuition. The idea helps keep more children in school while keeping trash off Lagos city streets.
Thursday, June 8, 2023
President Tinubu defends end to fuel subsidy
Nigerian President Bola Tinubu on Wednesday defended the West African nation’s decision last week to stop subsidizing fuel, a move that has pushed up prices for transportation and commodities.
Tinubu appealed for patience as millions of citizens face additional economic hardship. The money saved by ending the decades-old subsidy will help the government’s efforts to fight poverty and implement other initiatives, he told governors in a meeting in Nigeria’s capital city, Abuja.
“We can see the effects of poverty on the faces of our people. Poverty is not hereditary, it is from society. Our position is to eliminate poverty,’’ a statement from the Nigerian presidency quoted Tinubu as saying.
The governors supported the subsidy’s removal and promised to work together in implementing it, the presidency’s statement said.
Though Nigeria is an oil-producing nation, it depends on imported refined petroleum products, and the government has subsidized the cost for decades.
But with oil revenues dwindling amid chronic theft and decreasing foreign investment, the government said the fuel subsidies are no longer economically sustainable. It budgeted 4.4 trillion naira ($9.5 billion) for the subsidies in 2022, far more than for education, health care and infrastructure combined.
Analysts, however, faulted the government’s decision to withdraw the subsidy without incentives in place, especially at a time when many Nigerians already struggle to cope with record high unemployment and poverty.
Inflation is at an 18-year high. Unions have threatened strike in protest of the subsidy decision.
Nigeria’s states have begun to adopt various measures seeking to assist citizens, especially workers commuting to work daily. Edo and Kwara states this week cut the work week from five days to three. Other states said Wednesday they are considering such measures as increasing the minimum wage of 30,000 naira ($65).
In Abuja and other parts of Nigeria, The Associated Press found businesses struggling from having to spend more money on fuel for generators. As many as 46% of Nigeria’s people do not have access to electricity, the World Bank says.
In Kano state, the economic hub of northern Nigeria, Mahmud Mudi, a taxi driver, said he had to halt his transport business because he was losing money due to higher gasoline prices.
“The situation is unbearable,” Mudi said. “As a family man, the already unfriendly economy has been worsened by this removal of fuel subsidy. I have had to suspend my taxi operations and rely on divine intervention.”
Rafi’atu Audi, a government employee in the state, said it was difficult to commute to work daily because of the sharp increase in transportation costs.
“Transport fares have shot up, but our salaries remain the same,” said Audi. “It’s painful (and) I cannot bear the costs anymore.”
By Chinedu Asadu, AP
Related stories: Main union in Nigeria to suspend strike over petrol subsidy
The aftermath of fuel subsidy removal announcement in Nigeria
Naira Drops to a Record Low
Nigeria’s currency sank to a record low after the central bank auctioned dollars at a naira rate that was almost 30% weaker than on the tightly controlled official market.
Faced with heavy demand from industries and importers for the greenback, the central bank of Africa’s biggest economy sold dollars at 645 naira apiece, adding to speculation that a devaluation may be in the cards after the inauguration of a new president last month.
In official trading on the Nigeria Exchange, the currency slipped as much as 0.7%, the most in almost six months before paring losses to 467.04 naira a dollar as of 2:40 p.m. local time — a record low.
Nigeria’s dollar earnings and reserves are dwindling and the government uses multiple exchange rates to manage supply and demand for foreign currency. Most residents who can’t get hold of the greenback on the main market or at auctions are forced to turn to black market trading where the naira is about 40% weaker.
Nigeria’s President Bola Tinubu announced plan to adopt a uniform exchange rate during his inauguration last month, part of a program to boost investments and grow the economy. Last week, the central bank denied a report that there was a steep decline in the official naira rate.
“The president has said we don’t need all those windows, so it’s a question of time for the currency to find its real value at the oficial trade,” Adetilewa Adebajo, economist and chief executive with Lagos-based CFG Advisory said by phone.
CFG Advisory expects the currency to trade at about 650 naira a dollar following a devaluation, Adebajo said. “When you have multiple rates or a static exchange mechanism it works against you.”
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