The Minister of Budget and National Planning, Sen. Udoma Udo Udoma, says Nigeria’s foreign reserves have reduced from $26.51 billion in the second quarter of 2016, to $24.74 billion in September. Udoma said this at the 57th annual conference of Nigerian Economic Society with the theme “The developmental state and diversification of the Nigerian economy”. He said Nigeria had revenue and foreign currency concentration problems, adding that a diversification of
Nigeria has lost about $200 billion (₦61 trillion) as a result of its failure to pass the Petroleum Industry Bill, according to a new Nigeria Extractive Industries Transparency Initiative policy brief. NEITI’s brief titled, ‘The urgency of a new petroleum sector law’, said some of the losses were cancelled projected investments due to regulatory uncertainty, which experts had put at $120 billion since the commencement of the process for the passage
Yesterday in Algeria, OPEC oil ministers arose from a meeting to announce a cut/freeze of 32.5-33 MBPD. The finer details and decisions about who gets to cut what and by how much will be made at their next meeting in Vienna on November 30. The world markets have already started reacting to this news.
How does this impact Nigeria?
Industry experts who spoke with SBM Intelligence all agree that it is good for Nigeria as it brings in more much needed foreign exchange to
The CBN on Wednesday settled OTC FX futures contracts on the interbank market to the tune of $180 million. The FMDQ OTC Securities Exchange said the transaction settlement followed the maturity of the “third OTC Futures Contract Notional $180 million of naira/$ of September 28, 2016, settled today on the FMDQ OTC Securities Exchange”. This is just as the naira continued its precipitous decline on the parallel foreign exchange market, falling to a historic
The United States has overtaken India to become the biggest importer of Nigerian crude oil according to the latest NNPC monthly report, the first time in more than two years. The US bought 10.79 million barrels of Nigerian crude in June, up from 4.76 million barrels in the previous month, while India’s imports stood at 9.62 million barrels, down from 16.29 million barrels in January. US import of Nigerian crude rose by 577.8 percent in Q1 compared to the same
The AfDB is set to lend Nigeria a total of $4.1 billion over 2016 and 2017, and $10 billion by 2019, its president said on Monday, to help the economy plug its budget gap and develop its infrastructure. Akinwumi Adesina said he would go to the pan-African lender’s board next month to seek approval for a first, $1 billion loan to cover this year’s deficit as Nigeria grapples with its first recession in more than 20 years. “The bank is going to provide in
The naira fell to 440 to the US dollar at the parallel on Sunday, as a lingering foreign exchange scarcity reached new levels. The local currency, which closed at ₦436/$ on Thursday, eased to ₦435 in the early hours of Friday, closing at ₦439/$. The latest declines in the naira’s value started on Wednesday, a day after the MPC retained the benchmark lending rate at 14 percent, rebuffing calls for rates cut by analysts, stakeholders and some government
The CBN-MPC has retained the Monetary Policy Rate at the current 14 percent. The decision to leave the rate unchanged was contrary to expectations of economic analysts, manufacturers and some government officials. Finance minister, Kemi Adeosun, had on Monday called for the regulator to lower interest rates so that the government could borrow domestically to boost the economy without increasing debt servicing costs. In an interview with CNBC Africa on Sep. 19, she
The CBN borrowed ₦140.88 billion ($448 million) via short-dated Treasury bills at an auction on Wednesday, attracting lower yields across the board, except on the three-month debt that was flat, data from the regulator showed on Thursday. CBN sold ₦28.12 billion of the three-month paper at 14 percent, the same as at the last auction on September 14. It sold ₦23.68 billion of six-month debt at 17.27 percent against 17.77 percent previously. It sold ₦89.08
President Muhammadu Buhari said his administration would ensure that “Nigeria does not slip back into a lazy and dangerous dependence on the price of crude oil” again. In an op-ed for Bloomberg View published Wednesday, Buhari expressed optimism that “Nigeria is on the rise” and his government has set enviably workable modalities to drive the economy out of recession and reposition the country and Africa as a destination point for every investor. The