- Growth in Nigeria, and other developing economies that are primarily commodity exporting, could slow further over the next few years, the IMF says in its forthcoming 2015 World Economic Outlook. The Fund suggests that the recent decline in commodity prices could shave off one percentage point annually from the growth rate of commodity exporters over 2015-17. But in exporters of energy commodities like Nigeria, the drag could be larger—about 2¼ percentage points
- Some Nigerian manufacturing sub-sectors are said to be at their lowest ebb, and could be in danger of a collapse due to problems ranging from the economic downturn, customers’ preference for foreign made substitutes, the inability to compete with imports, and the lack of policy direction. Some of the sub-sectors under critical watch are paints, pharmaceuticals, primary aluminium, ceramics, footwear, rubber, domestic/ industrial plastics, toiletries and cosmetics,
The use of landed property will no longer be emphasized for small business operators (MSMEs) who have valuable moveable assets that can be used to secure funding, as some of their assets, including motor vehicles and bikes, may soon be approved as eligible loan collateral. This comes with the establishment of a national collateral registry by the Central Bank of Nigeria to reduce the difficulties encountered by MSMEs in accessing funds to develop their businesses.
- The CBN kept its key interest rate unchanged at a record 13 percent, while defying calls to devalue the Naira despite a plunge in oil revenue. The Cash Reserve Ratio was reduced to 25 percent from 31 percent. The move by the apex bank to stay its course is being seen by analysts as “merely kicking the can down the road”. CBN Governor Emefiele said that the import ban would help to create jobs and boost local industries, but Razia Khan, Regional Head of Economics,
- Big decisions around the distribution of foreign exchange, and the management of Nigeria’s slowing economy are expected to be made today, as the Monetary Policy Committee rounds off its 2-day meeting. Among other things, analysts are watching out for a reduction in the Cash Reserve Ratio to help banks continue their intermediation role, as the TSA implementation prompted an exodus of public sector funds out of the banking system, leading to a spike in the cost
- Ratings service, S&P’s recent rating of the Nigerian economy is showing that Nigeria’s non-oil sector is resilient and resurging, analysts are saying. The service maintained Nigeria’s long- and short-term foreign and local currency sovereign credit ratings at ‘B+’. “A series of reforms, including in agriculture, and the rapid growth of sectors such as telecoms and financial services have contributed to non-oil growth momentum in recent years,”
The wife of the deputy MD at the Sun newspaper, Toyin Nwosu, was kidnapped on Monday after a nine man gang invaded their residence at Okota in Lagos, robbing the family of their valuables. The kidnappers reportedly demanded for a hundred million naira ransom. Mrs. Nwosu was released unharmed two days later, and it is unclear if a ransom was paid.
On Tuesday night, no fewer than nine personnel of the Department of State Security (DSS) were killed by petroleum pipeline
- The Deputy Governor of the Central Bank of Nigeria (Economic policy), Sarah Alade, has said banks operating in Nigeria are among the most regulated in the world, adding that the era of bank failure was gone. Alade said the various economic policies already put in place by the regulator to supervise and monitor banks in the country would prevent the financial institutions from collapse.
- Nigeria’s 85 per cent tax on onshore
President Buhari says he is opposed to a further weakening of the naira, and has endorsed the Central Bank’s policy of restricting foreign-exchange trading. “I don’t think it is healthy for us to get the naira devalued,” President Buhari said in Paris. The Central Bank is providing ample foreign exchange to “essential services, industries,” he said. The presidential backing of the CBN governor’s policy Emefiele, is bound to dampen the clamour by analysts
- According to the Manufacturing Association of Nigeria (MAN), investment in the Nigerian manufacturing sector fell by
N1.3 trillion, from N2 trillion in 2013 to N691.80 billion in 2014, indicating that fewer funds went into plants and machinery, land and building, vehicles, equipment and assets under construction. Also,