Hello Readers, Bizwatchnigeria brings you the latest business news highlights in Nigeria for the week of November 17th–23rd, 2024.
Bitcoin Surges Past $91,400, Global Crypto Market Cap Hits $3.05 Trillion
The cryptocurrency market took a dramatic leap as Bitcoin’s price surged beyond $91,400, according to trading data. This rally was fueled by growing demand for Bitcoin Exchange Traded Funds (ETFs) and expectations of favorable regulations under the Donald Trump administration.
Nigeria’s Debt-to-GDP Ratio Forecast To Reach 54.6% In 2024
Nigeria’s debt burden is projected to rise significantly, with total debt expected to account for 54.6% of the country’s gross domestic product (GDP) by the end of 2024, according to analysts at Cordros Securities.
Interbank Rates Drop As Liquidity Improves
Interbank lending rates fell sharply last week, driven by an influx of liquidity from Remita inflows and coupon payments on Federal Government of Nigeria (FGN) bonds.
President Biden Commits $4 Billion To World Bank’s IDA To Support Poorest Nations
President Joe Biden commits $4 billion to the International Development Association (IDA), a branch of the World Bank that provides low-interest loans and grants to the world’s poorest nations. The pledge, announced during a meeting with Group of 20 (G20) leaders in Rio de Janeiro, strengthens IDA’s resources over the next three years.
FG Plans Higher Debt Servicing Allocations Than Capital Expenditure For 2025-2027
The Federal Government of Nigeria plans to allocate more of its budget to debt servicing than capital expenditure between 2025 and 2027, according to the recently approved 2025–2027 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). Debt servicing costs are projected to reach N50.39 trillion, surpassing the N48.93 trillion allocated for capital expenditures.
Banks Borrow N1.8 Trillion from CBN To Ease Liquidity Pressure
According to Broadstreet statistics, Nigerian deposit money banks (DMBs) borrowed almost ₦1.8 trillion from the CBN’s Standing Lending Facility (SLF) to resolve liquidity gaps. The majority of these borrowings came from smaller banks, as cash-rich lenders held onto surplus liquidity and demanded higher interest rates for its release.
Nigerian Treasury Bills Yield Moderates As DMO Prepares Primary Market Auction
The average yield on Nigerian Treasury bills dipped slightly due to buy-side activity in the secondary market. The mixed trading sentiment came as the Debt Management Office (DMO) geared up to conduct a primary market auction on behalf of the monetary authority, offering approximately ₦610 billion in 91-day, 182-day, and 364-day maturities.
Naira Rises Against US Dollar As Forex Trade Volume Slows
The naira regained some of its lost exchange rate value in the official market as the amount of US dollar transactions decreased on the day. According to spot data from the FMDQ platform, the naira rose by 0.68% and closed at ₦1,678.93 per US dollar on the official market.
Yields Approach 10% As Foreign Investors Exit Nigeria’s Eurobonds
The average yield on Nigeria’s government Eurobonds has risen to 10% in foreign markets, owing to a wave of selloffs fueled by inflation-driven risk aversion.
Starlink Suspends New Residential Orders In Nigeria Pending NCC Approval For Price Hike
Starlink, Elon Musk’s satellite internet service, halts new orders for its residential kits across Nigeria as it awaits approval from the Nigerian Communications Commission (NCC) to implement a proposed price increase. The suspension affects the Residential Plan, while the Business Plan remains available at ₦159,000 per month compared to the Residential Plan’s current ₦38,000 monthly subscription.
Naira Approaches N2,200 Against The British Pound
The naira breaks the N2,180 barrier and begins Thursday’s session at the lower end of its range against the British pound. On the black market, the pound trades at N2,188/£1 despite improved conditions in Nigeria’s foreign exchange reserves managed by the Central Bank of Nigeria (CBN).
ICANN Launches Program To Assist Small Businesses In Acquiring New Domain Extensions
The Internet Corporation for Assigned Names and Numbers (ICANN) launches the Applicant Support Program (ASP) to provide financial and technical assistance to small businesses seeking new Generic Top-Level Domains (gTLDs). This initiative is part of ICANN’s New gTLD Program: Next Round, which allows businesses, organizations, and communities to register unique domain endings such as “.brandname” or “.community” for the first time since 2012.
Tax Reform Bills Replace Finance Act Upon Enactment – Taiwo Oyedele
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, says the Finance Act will become obsolete once the proposed Tax Reform Bills are passed into law by the legislative and executive arms of government.
Naira Slides Further In FX Markets Amid Lack Of CBN Support
The naira, Nigeria’s currency, continued its downward trajectory against the US dollar across various foreign exchange (FX) markets due to insufficient intervention by the Central Bank of Nigeria (CBN).
FG Secures ₦346.155 Billion In November Bond Auction
The Federal Government raises ₦346.155 billion during its November 2024 bond auction, achieving higher allotments despite a reduction in the total amount offered. The Debt Management Office (DMO) conducts the auction on November 18, reopening the 19.30% FGN APR 2029 (5-Year Bond) and the 18.50% FGN FEB 2031 (7-Year Bond).
Bitcoin’s Market Value Approaches 10 Times The Size Of Nigeria’s Economy
Bitcoin, the leading cryptocurrency, reaches a record high of $97,000, pushing its market capitalization to $1.9 trillion. This makes Bitcoin nearly 10 times larger than Nigeria’s economy, currently valued at $252 billion according to the International Monetary Fund (IMF).
Naira Mixed As Markets Brace For $2.2bn External Borrowing
The naira appreciated on the strength of external borrowing approval, FX intervention, and sustained increase in external reserves. Increased demand for foreign currencies in Nigeria has caused the naira to lose its allure. On Thursday, the one-sided exchange rate gain raised the gap between official and parallel market rates to N82.
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