• Wild jubilation at Aso Rock as IMF figures show Nigeria rebounds, set to overtake S'Africa as Africa's largest economy

    19/Oct/2016 // 527 Viewers

     

    A new report from the International Monetary Fund (IMF) has projected Nigeria as Africa’s biggest economy, in spite of its current challenges.

    Nigeria is placed ahead of South Africa and Egypt which are second and third respectively.

    In August, Nigeria was reported to have lost its position as Africa’s biggest economy to South Africa, following the recalculation of the country’s Gross Domestic Product (GDP).

    But the IMF’s World Economic Outlook for October, puts Nigeria’s GDP at 415.08 billion dollars, from 493.83 billion dollars in 2015, while South Africa’s GDP was put at 280.36 billion dollars, from 314.73 billion dollars in 2015.According to the report, Egypt’s 2016 data is not available, but its 2015 size remained at 330.159 dollars while that of Algeria, one of the largest economies on the continent, is put at 168.318 billion dollars.

    The United States, China and Japan maintain their spots as the largest economies in the world, ahead of Germany, United Kingdom and France.

    According to a review in September, the current economic recession will outlast 2016, with a Gross Domestic Product (GDP) contraction of 1.7 per cent.

    The IMF had predicted that Nigeria’s economy would grow away from a recession in 2017.

    The country last witnessed a recession, for less than a year, in 1991, and experienced a prolonged one that started in 1982 and lasted until 1984.

    President Muhammadu Buhari’s administration has so far disbursed over N700 billion in capital expenditure this year, part of a record N6.06 trillion (30 billion dollars) budget for 2016. -  NAN


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  • Breaking! Naira collapses again before Buhari, new exchange rate will shock you!

    20/Aug/2016 // 1750 Viewers

     

    The Naira on Friday suffered further loss against the dollar at the parallel market as it lost one point to the US currency, the News Agency of Nigeria reports.

    The naira exchanged at N395 to the dollar from N394 it posted on Thursday, while it traded at N505 and N442 to the Pound Sterling and the Euro respectively.

    At the Bureau De Change segment of the market, the currency closed at N395 at the trading, while to the Pound and Euro, it exchanged at N503 and N434, respectively.
     
    However, it strengthened at the official interbank market as it exchanged at N316.55, from N347.13 posted on Thursday.
    Traders at the market expressed hope that the naira would rebound in the coming weeks as banks were ready to sell foreign exchange to BDCs in the coming weeks.


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  • Again, Naria sinks ahead of Christmas, exchange rate disheartening

    20/Dec/2016 // 1663 Viewers

     

    The naira has depreciated against all major currencies on the parallel market yesterday, December 19, 2016 as the scarcity of foreign exchange continues compared with how much it exchanged for on Friday last week.

    Reports showed that the nation’s currency, which earlier depreciated to N487 to the dollar, slipped further as a result of strong demand for the greenback exchanging for as high as N490.

    A trader attributed the high dollar demand observed in the parallel market to the activities of importers who have to make payments to bring in goods for end of year sales.

    Meanwhile, the Central Bank of Nigeria (CBN) has asked banks to submit bids for a “special currency auction” to clear the backlog of matured outstanding dollar obligations for selected sectors of the economy, traders said on Monday.
    The central bank instructed commercial lenders to submit backlog dollar demand from fuel importers, airlines, raw materials and machinery for manufacturing firms and agricultural chemicals by 1500 GMT for a special forex intervention, Reuters disclosed.

    Traders said the central bank plans to sell “funded forwards of two to five months tenor” dollars to the targeted sectors at an auction ahead of the closure of the forex market for the year.

    The central bank is expected to close all foreign exchange transactions this Friday ahead of its financial year end and the Christmas period. The naira currency has traded around N305.5 to the dollar on the official interbank market since August.

    Two weeks ago, the bank had asked commercial lenders to submit bids for a special intervention auction targeting fuel importers, but the result of the auction has not yet been released, traders said.

    On Monday, the Nigerian National Petroleum Corporation said it had imported about 38.7 million litres of aviation fuel, which it said “represented about 26-day sufficiency”, as part of its “ensure a hitch-free air travel across the country during and after the yuletide period”.


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  • In recession, Buhari drags Nigeria to the Arab world, prepares for first Islamic bond, shops for advisers

    20/Dec/2016 // 1111 Viewers

     

    Nigeria is looking for financial and legal advisers and trustee firms to organise its first Islamic bond in the domestic market, the country's Debt Management Office (DMO) said on Monday.

    The OPEC member, which is Africa's largest economy, is working on a debut sovereign sukuk but has yet to determine the size of a potential deal.

    Nigeria, which is in a recession and needs to raise funds to plug a budget deficit, has set up a government committee to advise on the amount to be raised from the Islamic bond sale, the timing and jurisdiction of the issue.

    Issuance of a sovereign sukuk is part of a plan by Nigeria's debt office to develop alternative sources of funding and to establish a benchmark curve.

    In a public notice, the DMO said it required the services of banks and an issuing house to serve as financial adviser, a legal firm to serve as a legal adviser and a trustee firm. It said bids for the roles are to be submitted by Jan. 9.

    The advisers are expected to work with the debt office towards the sukuk issue at a date that is yet to be announced.

    In October, the central bank issued guidelines limiting commercial banks' investment in Islamic bonds issued by state governments to 10 percent of the total amount on offer and fixed a maximum tenor of 10 years for the bonds.

    Nigeria has the largest Islamic population in sub-Saharan Africa. Around half of the 180 million people in Africa's most populous nation are Muslims.

    REUTERS

     


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  • JUST IN: End of the road as BUHARI bows to pressure, set to officially devalue NAIRA this year

    20/Jan/2017 // 2280 Viewers

     

    Nigeria will devalue its currency, the naira, later this year in an effort to improve liquidity and close the gap between the official and exchange parallel markets, a Reuters poll has shown.

    That expectation by seven of the nine economists polled this week comes even though Central Bank of Nigeria (CBN) Governor Godwin Emefiele has said he would not devalue the naira.

    An analyst and investor at Rich Management in Nairobi. Aly-Khan Satchu, said: “The possibility of a devaluation is certain; the question is the timing. They are eventually going to capitulate at some point this year, a similar scenario to Egypt at the end of last year – a big devaluation in the official rate.

    “Nigeria stubbornly held on to an official peg of 197 naira to the dollar for 16 months, until June of last year, hurting the economy. It subsequently floated the currency but maintained some measures to prevent further weakening. The naira currently trades at 305 per dollar. Dollar shortages meant the currency fell to close to 500 against the dollar last week on the unapproved open retail market.”

    Satchu said keeping the currency artificially high is effectively stalling the economy and making investment difficult.

    The CBN is expected to leave its benchmark interest rate unchanged on Tuesday, and for the rest of the year, at 14 per cent to halt rising inflation and support growth, the wider poll of 12 economists also found. After the apex bank added 300 basis points to borrowing costs last year to try and tame soaring prices, all 11 analysts surveyed said they expected it to keep its benchmark rate on hold next week. Inflation was uncomfortably high at 18.55 per cent in December, its highest in more than 11 years and the 11th straight monthly rise.

    Galloping inflation comes as Africa’s largest economy grapples with its first recession in 25 years, largely caused by the decline in global oil prices since 2014. Crude oil sales account for 70 per cent of government revenue. Inflation is expected to average 15.2 per cent this year and slow to 11.0 per cent in 2018.

    Cobus de Hart of NKC African Economists in a client note, said:“High inflation, however, remains the main stumbling block at this stage, but the CBN may become more willing to gradually loosen its grip on the naira as inflationary pressures start to ease somewhat this year.”

    The economy is expected to grow 1.5 per cent this year and 2.9 per cent next, although the most bearish analyst said it is possible the economy will contract 1.5 per cent this year.


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  • Again, Naira sinks, suffers another loss against US dollar on Thursday

    20/Jan/2017 // 1117 Viewers

     

    The Naira on Thursday remained indifferent to the sale of over 250 million dollars to licensed Bureau De Change (BDC) operators nationwide as it suffered another loss against the dollar.

    The News Agency of Nigeria (NAN) reports that the Naira inched against the dollar at the early hours of Thursday morning by 2 points but could not sustain the gain as it shed 3 points to close at N498 to a dollar at the open market.

    The Pound Sterling and the Euro traded at N596 and N520, respectively, at the open market.

    At the BDC window, the Naira exchanged at N399 to a dollar, CBN controlled rate, while the Pound Sterling and the Euro closed at N599 and N522, respectively.

    Trading at the interbank market saw the Naira weakening further as it closed at N305.50, from the N305.25 it recorded on Wednesday.

    Traders at the market were hopeful that the Naira would bounce back as quickly as possible.

    They, however, noted that the Naira was waging a guerilla-like war against speculators who manipulate the market for their selfish ends. (NAN)


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  • JUST IN: Another setback for Buhari as some Nigerian workers demand payment of salaries in US dollars

    20/Sep/2016 // 407 Viewers

     

    ABUJA—AS the economic recession bites hard on Nigerians, the leadership of Non-Academic Staff Union of Educational and Associated Institutions, NASU, has said that if nothing was done to arrest the free fall of the naira against international currencies, it will demand that the salaries of workers be paid in dollars.

    The union also berated state governors who owe workers’ arrears of  salaries, accusing them of being extravagant with the people’s resources.

    Speaking at the National Executive Council, NEC, meeting of the union in Abuja yesterday, the National President of NASU, Mr Chris Ani, stated that the issue of earned allowances for staff of universities, particularly NASU members, was still outstanding.

    He said: “Apart from the N30 billion released as part payment of the arrears in 2014, nothing has happened again, despite several meetings and negotiations on same.

    “Meanwhile, staff of universities who are owed allowances are seriously agitated and unhappy. ‘’Except government acts fast by releasing the needed funds for the payment of the arrears of the allowances, it may be difficult to sustain the present industrial peace in our universities.”


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  • Again, Naira sinks, FG reacts, set to wipe out black market operators (See eschange rate)

    21/Dec/2016 // 820 Viewers

     

    The Central Bank of Nigeria (CBN) is seeking to ensure there is no black market as the naira continues its free fall against all major currencies due to forex scarcity thus closing down businesses and driving away foreign investors.

    On Wednesday, the naira was trading at 314 at the official market, with parallel market recording 490/$1.

    The British pound stood at 605, while the European Union currency, euro went for 510, a far cry of its 388,  327 range at the official side of the market respectively.

    Vice President YemiOsinbajo, and Kemi Adeosun, minister of finance, had previously said the CBN was working on a foreign exchange system that eliminates arbitrage in the forex market.

    Isaac Okorafor, the spokesperson for the bank, was quoted by Reuters to have said the bank was “ensuring that the forex market operates as effectively as we would envisage”.

    He also said the aim was to “ensure there is no black market” but did not give details of how this would be achieved.

    Godwin Emefiele, governor of the CBN, had said consistency that the parallel market could not be used to evaluate the true value of the local currency.

    “It is unfair to use the shallow market as a basis for determining the value of our currency. No one uses the Travelex rate at Heathrow to determine the exchange rate for the pound in the United Kingdom,” Emefiele had said.

    “So it is unfair to use that to determine the value of our currency. Those who are dealing in the market are doing so illegally. We should not be encouraging the tendencies of those people who are involved in capital flight, or those who want to conduct foreign exchange business without providing necessary documentation.”


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  • Buhari kicks as another powerful man of God breaks silence on Nigeria's anticipated break-up, predicts what will happen in 2017

    21/Dec/2016 // 4586 Viewers

     

    PARIS, DECEMBER 21, 2016: (DGW) As separatist feelings and agitations continue to grow, powerful man of God has released his predictions ahead of 2017 as security and economic challenges continue to ravage the country.

    The Catholic priest, a Catholic priest, Bishop Paulinus Ezeokafor of the Catholic Diocese of Awka, Anambra state in his Christmas and New Year message said that 2017 will not be different from and better than the outgoing year, 2016 but, in any case, urged Nigerians to be hopeful. 

    Nigeria will not break-up in 2017 - Bishop Ezeokafor

    He went further to say Nigeria will not collapse and advised Nigerian to continue to hope for the best.

    His words:

    “Nigeria will not collapse; our people must continue to live in hope, Nigeria will still come out of the woods and the responsibility of revamping the economy is that of all of us, not government alone.

    “I see hope but I encourage us to adjust to the new situation in the country.”


    “Any nation that cannot feed itself is doomed, we should endeavour not to spend on importation of food, I think the fall in oil price is good for us,” he said.


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  • Again, Naira sinks on Monday, importers speechless! (New exchange rate frustrating)

    21/Feb/2017 // 1806 Viewers

     

    PARIS, FEBRUARY 21, 2017:(DGW) THE Naira, Nigeria's domestic currency  has continued fall against all major currencies in spite of the measures recently put in place to salvage it.

    On Monday the Naira exchange for N520 per dollar on the parallel market even as the Central Bank of Nigerian, CBN fund commercial banks with additional forex to cater for school fees, medical and PTA/BTA fares.

    The currency depreciated sharply from N518 its opened trading on Monday, February 20, 2016 to N510 at midday trading.

    The local currency against the Pound Sterling and Euro to N635 and N542 at the parallel market.

    At the official market, the naira had since been pegged by regulators at 305 naira per dollar.


    Meanwhile, the Acting Director, Corporate Communications, CBN, Isaac Okoroafor has advised Nigerians, who have legitimate reasons to procure forex to approach their banks, where their needs would be catered for rather than go to the parallel market.

    “The banks have been directed to sell to all the people that will come up for it and they actually have been directed to open up avenues at the airport so that they can deal with these demands,” he explained.


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