Hello Readers, Bizwatchnigeria brings you the latest business news highlights in Nigeria for the week of November 10th–16th, 2024.
Nigerian Government Redirects N5.4 Trillion Fuel Subsidy Savings To National Development Projects
The Nigerian government confirms that it is redirecting an estimated N5.4 trillion in savings from the removal of fuel subsidies in 2024 towards critical infrastructure and social intervention programs designed to improve living standards for citizens and support nationwide development.
CBN Raises Over N2.07 Trillion Through Treasury And OMO Bill Auctions
The Central Bank of Nigeria (CBN) has generated more than N2.07 trillion from the financial markets through sales of Treasury and Open Market Operations (OMO) bills, according to recent auction results.
Rising Inflation Rate Expected Due To Currency Instability And High Food Prices
Nigeria’s inflation rate is projected to continue its upward trend, driven by rising logistics costs and exchange rate pressures impacting food prices across the country. Analysts anticipate this increase ahead of October’s monthly inflation report.
CBN Spends $383 Million To Support Naira, 30% Drop From September FX Sales
CBN’s Move: The Central Bank of Nigeria (CBN) reduced its foreign exchange support to the naira by approximately 30% in October 2024, selling fewer U.S. dollars to authorized dealer banks. This marks a slowdown in the CBN’s efforts to support the naira amid rising pressure on the currency.
Money Market Rates Surge Amid Liquidity Shortfall In Banking Sector
Money market rates surged last week due to a liquidity deficit in the banking sector. The market began on a strong note but was impacted by outflows from auction sales, which tightened liquidity further.
Naira Plummets To N1,740 Per Dollar In Parallel Market Amid Record-High FX Turnover
The naira continued to face pressure in Nigeria’s foreign exchange market, falling to N1,740 per dollar in the parallel market on Monday, marking a loss of N8 from the previous day’s rate of N1,732/$. This depreciation persists despite a surge in FX turnover and an increase in the country’s external reserves.
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Fitch Solutions Forecasts Naira Depreciation To N1,993 Per Dollar By 2028, Impacting Medical Device Imports
Fitch Solutions projects a significant depreciation of the naira, predicting it will reach N1,993 per dollar by 2028. This decline is expected to pose challenges for Nigeria’s pharmaceutical sector, particularly in the importation of medical devices.
Foreign Investors Drawn To Nigeria’s Eurobonds After U.S. Rate Cut
International investors have increased their exposure to Nigeria’s Eurobonds amid improved market sentiment, driven by the recent U.S. Federal Reserve rate cut of 0.25% to a range of 4.50%-4.75% and U.S. election results.
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Nigerian Bonds Yields Settle At 19.41% As Inflation Looms
The average yield on Federal Government of Nigeria (FGN) bonds reached 19.41% in the secondary market last week, following mixed trading sessions and in anticipation of upcoming inflation data.
Nigeria’s Inflation Rate Set To Increase In October Amid Economic Pressures
Nigeria is set to experience a further increase in its inflation rate for October 2024, according to insights from several economists. This follows a recent increase in September’s inflation rate, which stands at 32.70% year-on-year (YoY), up from 32.15% in August. This upward trend comes after brief relief in July and August when inflation slightly eased to 33.40% YoY in July from 34.19% in June.
Cryptocurrency Market Reaches Record $3 Trillion Amid Regulatory Optimism Following Trump’s Election
The global cryptocurrency market cap has hit an unprecedented $3 trillion, driven by renewed optimism following Donald Trump’s recent election as U.S. President. Investors are anticipating more favorable regulatory policies under the new administration, which has boosted confidence in digital assets.
Bitcoin Surges By 30% Following U.S. Election
Bitcoin’s price has surged above $90,000 on Thursday, driven by post-U.S. election trading trends and optimism surrounding a pro-cryptocurrency stance in the new administration. Since the election, Bitcoin has climbed by 30%, with investors responding to Donald Trump’s support for increased cryptocurrency regulation.
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Money Market Rates Continue To Climb Amid Tight Liquidity
Money market rates surged higher on Thursday as liquidity constraints worsened within the banking system. With minimal inflows from maturing financial instruments, the market liquidity level dipped into negative territory once more.
Nigeria’s Promissory Notes Debt Rises To N1.65 Trillion, Up 114% Under Tinubu Administration
Nigeria’s Debt Management Office (DMO) reports a significant increase in the federal government’s Promissory Notes debt, which reaches N1.65 trillion as of June 2024. This figure represents a 6.5% rise from March 2024 and marks a staggering 114% increase since President Bola Tinubu assumed office.
Nigeria To Issue $1.7 Billion Eurobond To Fund 2024 Budget Shortfall
The Federal Government announces plans to raise around $1.7 billion through Eurobonds to address revenue gaps in the 2024 budget. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, confirms this development during a press briefing at the State House in Abuja.
Nigeria Targets N120 Billion In November Bond Auction, Marking 33% Decline From October Issuance
The Federal Government of Nigeria, through the Debt Management Office (DMO), announces plans to raise N120 billion in its November 2024 bond auction. This amount represents a 33.3% decrease compared to the N180 billion raised in October, suggesting a possible shift in borrowing strategy or improved revenue inflows.
Nigeria’s Debt-to-GDP Ratio Climbs To 55% By Mid-2024 As FG Plans New N9 Trillion Borrowing
Nigeria’s debt-to-GDP ratio increases to 55% as of June 2024, up from 42.4% in December 2023. This significant rise is reported by the Debt Management Office (DMO), indicating that the country’s external debt now stands at $42.9 billion, while domestic debt has surged to N71.2 trillion.
CBN Vows Heavy Sanctions On Banks Abetting Naira Hawking
The Central Bank of Nigeria (CBN) has announced stringent measures to curb the hawking and abuse of the Naira, warning that Deposit Money Banks (DMBs) found culpable will face severe penalties.
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