19 Oct

Nigeria is playing with fire, again

In a report published in August, it was shown that the Nigerian Army is overstretched in its involvement in internal security operations. As of the time of the report, troops were actively involved in 30 of the 36 states.

When this is situated within the context of the latent threat of a Boko Haram resurgence; the escalating situation in the Middle Belt; the continuing militant activity in the Niger Delta; the IPOB/Biafra movements which though not in open conflict,................   read more

19 Oct

Daily Watch – Another airline bites the dust, Job centres coming in March

  • Emirates has confirmed that it will suspend its Abuja-Dubai flight operations from October 30. The airline will now only fly out of Lagos cutting its Nigerian flight frequency from 21 times a week to about 5 times a week. The airline blamed the decision on “challenges with foreign exchange, low patronage, and other operational issues, which have reduced the profitability of flying on the route.” A few months ago, United and Iberia stopped operations
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18 Oct

Daily Watch – Interbank rate hits roof, Nigeria seeks $15bn India oil payment

  • Nigeria’s overnight interbank lending rate soared to a record high of 128 percent on Monday on naira cash shortages after the lenders funded their account with the CBN to participate in last Friday’s currency forward auction, traders said. Overnight rates opened at 100 percent on Monday, traders said, after the money market ended on Friday with no deals as commercial lenders held onto naira to be able to participate in the auction. Overnight money traded
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17 Oct

Daily Watch – Food, energy prices boost CPI spike, Forex reserve hit 11-year low

  • The CPI maintained its upward streak at the weekend, rising to 17.9 percent in September from 17.6 percent in the previous month. The NBS attributed the 0.24 percent rise in the headline number to increases in the food index as well as energy prices. Increases were recorded in all subdivisions, with, Communication and Restaurants and Hotels reported to have recorded the lowest rates of increase of the 12 divisions, growing by 5.6 percent and 9.6 percent respectively.
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14 Oct

The week ahead – There’s work to be done, we should not create more

Worrying divides in Nigerian Islam

A number of people have been killed in attacks on members of the Shia sect in five states in northern Nigeria. In three of the states, mobs attacked the sect members, injuring many and destroying their homes, adding another dimension to the crisis. The clashes came the as Shiites were winding up their annual Ashura festival which commemorates “historical events associated with the Islamic month of Muharram that is particularly significant................   read more

14 Oct

Daily Watch – First Bank is last man standing in FX market, VAT to help in NE rebuild

  • The crude oil production figure provided by Nigeria to OPEC for September was 139,000 bpd lower than the estimate from secondary sources. Nigeria, which lost the Africa’s top oil producer status in March, produced less crude oil than its rival, Angola, in September, according to OPEC. OPEC, in its latest monthly oil report released on Wednesday, said Nigeria’s oil output rose by 280,700 bpd to 1.385 million bpd in September, compared to Angola’s 1.649 million
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13 Oct

Daily Watch – GE confirms “keen interest” in Nigerian railways, Major shakeup rocks FAAN

  • Nigeria is planning to borrow more abroad than locally to fund next year’s budget in a bid to benefit from lower debt costs and reduce pressure on its interest bill, Budget and National Planning Minister Udoma Udo Udoma said. “There is going to be a shift to foreign, especially concessional debt,” Udoma said in a Bloomberg interview Tuesday. “Lower interest rates from foreign debt will help us manage our debt servicing, and also free domestic credit for
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12 Oct

Daily Watch – CBN and MoF sing kumbaya, UBA inks €60 million EU lending deal

  • The CBN Governor, Godwin Emefiele says there is no disharmony between the bank and the finance ministry. Speaking at a press briefing in Washington DC, Emefiele said both monetary and fiscal authorities were working hand-in-hand to get the much desired growth needed to get Nigeria out of its first recession in two decades. In September, finance minister, Kemi Adeosun had said the fiscal authorities were in need of low interest rates, to reduce the cost of borrowing.
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11 Oct

Daily Watch – Nigerian banking in “full-blown crisis,” Kaduna ramps up budget ambitions

  • Fifty customers owe commercial banks a total of ₦5.23 trillion, representing 33.4 percent of the total private sector credit exposure of ₦15.68 trillion, the CBN’s Financial System Stability report shows. “The total exposure to the top 50 obligors stood at ₦5.23 trillion (33.4 percent) of total industry credit exposure of ₦15.68 trillion,” the regulator said in the report. Although the report did not give the identities of the 50 big bank debtors,
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10 Oct

Daily Watch – CBN issues new Islamic bond rules, FG gets $1.3 billion for Development Bank

  • Nigeria’s planned November oil loading programme shows the highest exports since January, plans compiled by Reuters showed on Friday, as major oil streams resume. Plans show 62 cargoes, with 1.88 million barrels per day (bpd) expected to load during the month, the highest level since militants bombed the pipeline that exports Forcados crude oil in February. Before the pipeline was hit, February and March exports were planned close to 2 million bpd, but
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