Manufacturing and other sectors are impacted as the economy decelerates to its lowest point in three years.
The nation’s GDP growth dropped to 2.74% in 2023 from 3.10% in 2022, marking its slowest growth since 2020 when the economy shrank due to COVID-19.
According to the National Bureau of Statistics, both agriculture and manufacturing sectors saw reduced growth in 2023. Manufacturing grew by 1.40% in 2023, down from 2.45% in 2022, while agriculture grew by 1.13% in 2023, down from 1.88% in 2022.
In 2023, the non-oil sector grew by 3.04%,
In 2023, the non-oil sector grew by 3.04%, lower than the 4.84% in 2022, while the oil sector contracted by -2.22% compared to -19.22% in 2022. This is despite an average daily oil production of 1.55 million barrels.
The country’s GDP growth for the full year falls below global projections by the World Bank, IMF, and African Development Bank.
The World Bank forecasted a 2.9% growth for Nigeria in 2023, down from 3.3% in 2022. The IMF maintained its 3.2% growth forecast for the same year. The African Development Bank projected a slight increase to 3.1% for Nigeria’s GDP in 2023, citing uncertainties surrounding policy continuity after elections and rising insecurity as factors affecting growth prospects.
In the fourth quarter of 2023, the GDP grew by 3.46% compared to the same period the previous year. Both the industry and services sectors contributed more to the GDP in Q4 2023 than they did in Q4 2022. The services sector particularly drove this growth, expanding by 3.98% and contributing 56.55% to the overall GDP.
Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprise, noted that the comparison is year-on-year. He explained that during the fourth quarters of both 2022 and 2023, economic activities were affected by factors like election preparations and uncertainties, which slowed down growth.
BREAKING: Asue Ighodalo wins PDP governorship primary in Edo.
Businessman Asue Ighodalo won the Peoples Democratic Party (PDP) governorship primary in Edo state. Dauda Lawal, the governor of Zamfara and returning officer, declared him the winner with 577 votes.
“I declare Asuelimen Ighodalo the winner of today’s primary with 577 votes,” Lawal announced. “He’s now the Peoples Democratic Party (PDP) candidate for the Edo State election. Congratulations!”
Earlier, Philip Shaibu, the deputy governor of Edo, won the parallel governorship primary organised at his residence.
Bartholomew Moses, the returning officer, who announced Shaibu as the winner of the parallel primary election, said the deputy governor won the exercise with over 300 votes.
Some party delegates who arrived at the lawn tennis court of the Samuel Ogbemudia stadium in Benin City, the state capital, the venue of the primary, were reportedly denied access.
The delegates subsequently moved to Shaibu’s residence where a parallel election was held.
Super Eagles forward Victor Osimhen will work under a new coach at Serie A champions, Napoli following the sacking of Walter Mazzarri.
Struggling Napoli sacked Mazzarri on Monday and brought in Slovakia coach, Francesco Calzona, just a day before hosting Barcelona in the Champions League.
The 62-year-old Mazzarri became the second man to be sent packing this season by the ailing Italian champions.
Mazzarri took charge in November after Rudi Garcia was dismissed but Napoli then fell to ninth in Serie A ahead of Wednesday’s last 16, first leg with barca at the Stadio Diego Armando Maradona.
“I thank Walter Mazzarri, a friend of the De Laurentiis family and Napoli, for having helped the team in a tricky period,” said Napoli owner Aurelio De Laurentiis on X, formerly Twitter.
De Laurentiis confirmed that Calzona has been hired, reportedly until the end of the season, and will be in charge on Wednesday night.”
The new manager will hope to help revive the fortunes of Napoli in the remainder of the campaign.
The Serie A holders managed just six wins in 17 games across all competitions under Mazzarri.
Calzona, who is also the manager of the Slovakia national team, will retain his role and lead the country at the European Championship in the summer.
Calzona guided Slovakia to Euro 2024 but has a huge job on his hands as he returns to Napoli, where he was an assistant under Maurizio Sarri and during Luciano Spalletti’s trophy-less first season with the club.
The 55-year-old will reportedly keep his job with Slovakia while also trying to drag Napoli back up the table after the disappointing end to Mazzarri’s brief second spell in charge of southern Italy’s biggest club.
Marseille have sacked Gennaro Gattuso as their manager and replaced him with Jean-Louis Gasset.
Gattuso took over at the French club in late September and now leaving the club on ninth in Ligue 1.
The Italian claimed just nine wins from his 24 matches as manager, losing six times during his spell in charge.
While Gasset, 70, was recently sacked by Ivory Coast after the group stage of the just-concluded 2023 Africa Cup of Nations (AFCON) tournament, before they eventually went on to win the tournament.
“Olympique de Marseille announces the end of its collaboration with Gennaro Gattuso,” Marseille said in a statement.
“Marseille would like to extend its special thanks to Gennaro and his entire staff for the unfailing commitment and professionalism they have shown on a daily basis, and wishes them all the best for the future,” it added.
Gattuso joined Marseille as a replacement for now Villarreal manager Marcelino, who himself had only been at the helm in the South of France for three months.
Gattuso, who as a player won the World Cup with Italy in 2006, has also had spells managing AC Milan, Napoli and Valencia.
After a slow start to his time in France, four straight league wins in December took Marseille up to sixth in the table.
But Marseille have not won any of their last six Ligue 1 matches, four of which have ended in draws.
Gattuso took charge of 15 league matches at the Stade Velodrome, winning five, drawing five and losing five.
Marseille were also knocked out of the Coupe de France last month after a penalty shootout defeat to league rivals Rennes.
Despite the poor run of form, Marseille remain in the Europa League, finishing second in Group B behind English debutants Brighton.
Tinubu replaces Modibbo with Hafsat Bakari as head of NFIU.
Tinubu appoints Hafsat Bakari as NFIU Director/CEO, replacing Modibbo Tukur. The announcement was made by Special Adviser to the President (Media and Publicity), Ajuri Ngelale on Tuesday, February 20, 2024.
According to the statement, Bakari is a lawyer and financial intelligence expert with extensive experience in anti-money laundering, counter-terrorism financing, and counter-proliferation financing (AML/CFT/CPF).
Prior to her appointment as the NFIU CEO, she served as Deputy Director at the Nigerian Financial Intelligence Unit, and held various roles including Head of the General Services Unit, Head of the Strategy and Reorientation Unit, and Head of the Board Secretariat at the Economic and Financial Crimes Commission.
President Tinubu has instructed the prompt payment of outstanding electricity bills owed to the Abuja Electricity Distribution Company, AEDC.
The President expects Bakari to utilize her experience and expertise effectively in addressing illicit financial flows and other malpractices in the nation’s foreign exchange markets.
In another development, President Tinubu has instructed the prompt payment of outstanding electricity bills owed to the Abuja Electricity Distribution Company, AEDC.
This directive follows the reconciliation of accounts between the State House Management and AEDC.
AEDC management to the State House Permanent Secretary dated February 14, 2024.
Contrary to the AEDC’s initial claim of N923 million debt in a paid advertorial in newspapers, the State House’s outstanding bill is N342,352,217.46, as stated in a letter by the AEDC management to the State House Permanent Secretary dated February 14, 2024.
According to a statement by Bayo Onanuga, Special Adviser to the President on Information & Strategy, “having reconciled the position to the satisfaction of both parties, the Chief of Staff to the President, Rt Hon. Femi Gbajabiamila, has given assurance that the debt will be paid to AEDC before the end of this week.
Contrary to the AEDC’s initial claim of N923 million debt in a paid advertorial in newspapers, the State House’s outstanding bill is N342,352,217.46, as stated in a letter by the AEDC management to the State House Permanent Secretary dated February 14, 2024.
“Following the example of the Presidency, the Chief of Staff also urged other MDAs to reconcile their accounts with AEDC and pay their electricity bills”.
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Peter Obi reacts to CBN’s 9% increase in customs exchange rate.
Just days after reducing the exchange rate for Customs cargo clearance, the Central Bank of Nigeria (CBN) has increased it by nine percent, from N1,515.48 to N1,605.82 per dollar. This inconsistency has drawn criticism from Peter Obi, the Labour Party’s presidential candidate in the 2023 election. Obi urges the government to address these fluctuations, which negatively impact the business environment. The new rate, already reflected on the Nigeria Customs Service (NCS) portal, has further frustrated importers.
NAIJAEYES reported that the CBN made several adjustments to the exchange rate throughout the past year. On June 24, 2023, the rate was adjusted to N589/$, followed by another adjustment to N770.88/$ on July 6, 2023. Subsequent adjustments occurred on November 14, 2023 (N783.174/$), December 2023 (N951.941/$), February 2, 2024 (N1,356.883/$), and February 3, 2024 (N1,413.62/$). Further changes were made on February 10, 2024 (N1,417.635/$), February 11, 2024 (N1,444.56/$), and February 14, 2024 (N1,481.482/$). The rate was reduced to N1,472.756/$ on February 16, 2024, and increased again to N1,605.82/$ on February 21, 2024.
Our Correspondent also reports that the incessant increases have impacted negatively on the trade volume at the Nigerian ports as some importers have abandoned their goods at the ports while others have opted for ports in the neighboring countries.
Obi urged the Federal Government of Nigeria to cease the inconsistent duty charges.
However, in response to the situation, Obi, a businessman and politician, stated in a message on his verified X handle (formerly Twitter) @PeterObi, that prioritizing high Customs revenues over the survival of local businesses, employment, and reasonable cost of living would harm the nation’s economy.
Obi urged the Federal Government of Nigeria to cease the inconsistent duty charges, emphasizing that they were negatively affecting businesses and the cost of goods in the local market.
He emphasized, “The arbitrary and ever-increasing Customs duties are now detrimental to businesses and the cost of goods, posing a significant threat to the economy. The federal government must take urgent action to address this issue.”
This inconsistency leads to losses and contributes to inflation
In a scenario where importers start the importation process based on a specific exchange rate, such as N1000 to $1, and later find out upon arrival of goods in Nigeria that duties are calculated at a different rate, say N1400 to $1, it poses significant challenges for businesses. This inconsistency leads to losses and contributes to inflation, resulting in higher costs of goods and living. Consequently, it may lead to business closures and job losses as calculations were initially based on the prevailing exchange rate and market prices.
If not addressed, importers may opt to use ports in neighboring countries, which would reduce productivity in our ports and worsen the economy due to revenue loss.
An Ondo State High Court in Akure has sentenced six individuals, including a pastor, to death by hanging for their involvement in two separate bank robberies that took place in 2011. The judgment on Tuesday marked the culmination of a lengthy legal process that began with their arrest by the state police command.
The convicts, identified as Adewale Adelu (the pastor), Ikechuckwu Maduagwu, Fayemi Olubusuyi, Ropo Adeleye, Dele Otopka, and Bayo Omotosho, were found guilty of robbing two commercial banks – Diamond Bank and First Bank – in Akure and Idanre respectively. According to court documents, their crimes occurred on November 19 and December 8, 2011.
Prosecutors alleged that the group, armed with AK-47 rifles, dynamite, and other weapons, attacked the Diamond Bank branch on Oyemekun Road, Akure, escaping with N30 million and various valuables. Two weeks later, they reportedly targeted the First Bank branch on Yaba Road, Idanre, and stole an additional N4 million.
Following their apprehension, the accused faced four-count charges: conspiracy to commit armed robbery, armed robbery, and illegal possession of firearms. The trial saw arguments presented by both prosecution and defense counsel, with witnesses also called to testify.
In delivering the verdict, Justice Yemi Fasanmi stated that the prosecution had successfully proven its case beyond reasonable doubt. He cited the defendants’ own confessions, which outlined their individual roles in the robberies, as key evidence. Consequently, Justice Fasanmi sentenced each convict to death by hanging for each of the charges, totaling six death sentences per individual.
This verdict highlights the severity with which Nigerian courts view crimes like armed robbery, particularly those involving violence and significant financial losses. It also underscores the ongoing concern regarding bank robberies in the country, where incidents involving firearms and explosives have claimed lives and posed a significant threat to public safety.
However, the death penalty remains a controversial issue, with arguments for and against its use sparking ongoing debate. While some view it as a justifiable punishment for heinous crimes, others raise concerns about its ethical implications and potential for misapplication. As such, the court’s decision in this case is likely to continue generating discussion and raise important questions about the application of capital punishment in Nigeria’s legal system.
Governors under scrutiny as economic hardship, hunger worsens.
Concerns arise over the apparent lack of efforts by state governors to alleviate citizens’ suffering, despite substantial revenue increases post-fuel subsidy removal. Nigerians grapple with heightened economic hardship amid worsening inflation and ongoing depreciation of the Naira. Additionally, the nation contends with persistent security challenges, marked by frequent armed attacks across different regions.
According to NAIJAEYES, the cost of goods and services continues to rise daily, surpassing the affordability of the poor.
The economic situation worsened after President Bola Tinubu announced the removal of oil subsidies on May 29, 2023.
Protests against the economic hardship have erupted in various states, including Niger, Kano, Kogi, Ondo, Oyo, and others.
The Catholic Bishops Conference of Nigeria (CBCN)
The Catholic Bishops Conference of Nigeria (CBCN) and Northern traditional rulers, along with the Nigerian Bar Association (NBA), have criticized the government for its failure to address growing insecurity and economic challenges, despite significant budgetary allocations and security votes.
This is in addition to Northern traditional rulers and the Nigerian Bar Association, NBA, decrying the hardship in the country precipitated by the removal of fuel subsidies, resulting in higher transport costs and food inflation. However, while not absolving the federal government from the current economic crisis, many Nigerians have begun to question what the state governors are doing to alleviate the sufferings of the citizens in their various domains. NAIJAEYS reported that the Federal Government, on Tuesday last week, tackled the governors elected on the platform of the Peoples Democratic Party, PDP, saying they owed Nigerians an explanation on whether or not they spent increased allocations on their people. The federal government’s reaction comes on the heels of a statement by the PDP governors calling on the APC-led federal government to rise to the occasion and address the worsening economic hardship in the country before it got out of hand. The PDP governors had said the current hardship being experienced by Nigerians was occasioned by the nation’s economic and security challenges, blaming Tinubu’s administration for the crisis.
Removal of fuel subsidies.
There are concerns that despite massive increases in revenue allocations available to the various levels of government after the removal of fuel subsidies, state governors are not doing enough to ease the suffering of citizens. The development comes as Nigerians battle increased economic hardship following the worsening inflation and continuous Naira slip in the market. This is even as the country has continued to face security challenges, with frequent attacks by armed persons across various regions of the country.
NAIJAEYES reports that the prices of goods and services rise daily and have surpassed the reach of the poor. Recall that the nation’s economic situation worsened on May 29, 2023, after President Bola Tinubu announced the removal of oil subsidies.
Protests by residents in Niger, Kano, Kogi, Ondo, Oyo.
NAIJAEYES reported that there have been protests by residents in Niger, Kano, Kogi, Ondo, Oyo and other states against the biting economic hardship. The Catholic Bishops Conference of Nigeria, CBCN, has also complained that despite huge budgetary allocations and monthly security votes in Nigeria, the government has failed to address growing insecurity and economic hardship. This is in addition to Northern traditional rulers and the Nigerian Bar Association, NBA, decrying the hardship in the country precipitated by the removal of fuel subsidies, resulting in higher transport costs and food inflation. However, while not absolving the federal government from the current economic crisis, many Nigerians have begun to question what the state governors are doing to alleviate the sufferings of the citizens in their various domains.
NAIJAEYES reported that the Federal Government, on Tuesday last week, tackled the governors elected on the platform of the Peoples Democratic Party, PDP, saying they owed Nigerians an explanation on whether or not they spent increased allocations on their people. The federal government’s reaction comes on the heels of a statement by the PDP governors calling on the APC-led federal government to rise to the occasion and address the worsening economic hardship in the country before it got out of hand. The PDP governors had said the current hardship being experienced by Nigerians was occasioned by the nation’s economic and security challenges, blaming Tinubu’s administration for the crisis. “The forum consequently urges the federal government to, as a matter of urgency, embark on initiatives involving all the sub-national governments to bring a lasting solution to the crises,” said the chairman of the PDP Governors Forum, Governor Bala Mohammed of Bauchi State.
However, Mohammed Idris, the Minister of Information & National Orientation, said, “Nigerians should ask PDP governors how far and how well they have utilized the increased revenue to better the lives of Nigerians in their respective states. “It is on record that most states controlled by PDP owe workers and pensioners months of unpaid salary and pension arrears. The PDP governors have defaulted in paying gratuities to their retired workers. It is also a fact that many of the PDP governors have not paid N30,000 minimum wage to their workers since it took effect more than four years ago. All of these anomalies in their states contribute significantly to the economic pressure their citizens face.
Confirmed! Lassa fever claims 14 lives, 110 suspected cases in Ebonyi State
The Ebonyi State Ministry of Health on Wednesday said that Lassa fever had claimed 14 lives in the state.
According to Pulse, Dr Hyacinth Ebenyi, the Director of Public Health at the ministry, gave the figure in an interview with the News Agency of Nigeria (NAN) in Abakaliki. He said that the 14 cases were among the 29 confirmed cases of the disease recorded as of February 20.
Ebonyi expressed concern that no fewer than 110 suspected cases of the disease were recently recorded in the state.
“Yes, there has been an increase in the cases of Lassa fever. The disease is an endemic in the state.
“It did not just start, it has been here, most times, during the dry season.
“So far, we have had suspected cases of 110, and out of this figure, we recorded 29 confirmed cases.
” Out of 29 cases, as of Tuesday, we lost 14 persons,” the director said.
He, however, called on the citizenry not to panic, giving the assurance that the state government was making efforts to stem the tide of the disease. Ebenyi advised the state residents to be cautious about eating rats and making contact with their fluids.
“Lassa fever is a killer-disease. People should stop eating rat. Do not allow it to have any contact with your food,” the director added.
He listed the symptoms of the disease to include high fever, general body weakness and headaches.
“These signs progress within a short time, and if nothing is done, the affected person will start to bleed from the body openings until it affects the important organs of the body, and next will be death.
“Affected persons should go to hospital for treatment immediately,” he stated.
Cryptocurrency exchange Binance is unexpectedly trending on Twitter in Nigeria today, despite its P2P services being banned in the country since February 2021. While the exact reason for the surge remains unclear, experts point to several potential factors reigniting discussions around crypto regulation and user interest.
Possible Triggers:
Renewed Regulatory Debates: Ongoing discussions and debates about cryptocurrency regulation in Nigeria could be attracting renewed attention online. Recent statements from authorities or industry figures might have sparked speculation and interest.
Central Bank’s Stance: The Central Bank of Nigeria (CBN)’s cautious approach towards cryptocurrencies, including issuing warnings and proposing restrictive measures, could be a focal point of online discussions. Any updates or developments related to the CBN’s stance could be driving Twitter activity.
Alternative Trading Methods: Although P2P trading is banned, Nigerians might still be using alternative methods to access Binance, such as peer-to-peer trading on other platforms or international accounts. Increased activity in these alternative methods could be contributing to the trend.
Stay Informed:
Follow the conversation using the hashtag #Binance and check reputable news sources and official statements from authorities and industry figures for accurate updates on the situation. We will continue to monitor this developing story and provide further information as it becomes available.
At least Buhari was humble enough to accept that he was too dumb to understand how cryptocurrency works, so he just banned it outright.
These ones think Binance is Access Bank, and they can stop p2p trading by leaning on the exchange platform.
The handshake deal between the Nigerian government and cement manufacturers to cap cement prices between N7,000 and N8,000 per bag has sent shockwaves through the built industry, with developers fuming and demanding a steeper price cut. The agreement, hailed as a compromise by the government, is being met with fierce criticism, raising concerns about the future of affordable housing and the wider economic impact.
Broken Promises and Unanswered Questions:
The industry’s ire stems from several unresolved issues. Dr. Aliyu Wamakko, President of the Real Estate Developers Association of Nigeria (REDAN), points to BUA Cement’s earlier promise of slashing prices to N3,500 by January 2024, calling the current reduction “not good for the economy.” This sentiment is echoed by Toye Eniola of the Association of Housing Corporations in Nigeria, who questions the fairness of the N7,000-N8,000 range when compared to BUA’s initial pledge.
Cementing Inequality? Developers Fear a Deeper Deficit:
Beyond broken promises, stakeholders fear the new price points remain too high, jeopardizing their ability to deliver affordable housing and potentially widening the existing 28 million housing deficit. With most cement components sourced locally, Wamakko argues an N8,000 price tag is “unbeneficial” and risks leaving numerous building projects unfinished, further exacerbating the housing crisis.
Beyond Cement: A Call for Local Alternatives:
Recognizing the limitations of the price agreement, industry experts are urging a broader shift towards embracing local building materials. Eniola advocates for utilizing interlocking blocks, which require minimal cement, and exploring alternatives like bamboo for iron rods. Jide Odusolu of Octo5 Holdings stresses the need to move from bagged cement to producing concrete locally, promoting efficiency and cost-effectiveness.
Unveiling the True Cost: Gas, Transparency, and Accountability:
While acknowledging the potential impact of gas costs on production, stakeholders remain wary. Odusolu calls for government intervention to establish fair, domestic gas pricing mechanisms, citing the absurdity of a gas-flaring nation struggling with high production costs. Additionally, calls for greater transparency and accountability from both cement manufacturers and the government regarding pricing decisions and local resource utilization are gaining traction.
The Road Ahead: Renegotiation, Local Solutions, and a Watchful Eye:
As the industry grapples with the fallout of the price agreement, demands for renegotiation are loud and clear. Developers urge a revised agreement that reflects the potential for local sourcing and addresses gas pricing concerns. Embracing local building materials and ensuring transparency, alongside holding stakeholders accountable, are seen as crucial steps towards long-term stability and affordability in the built industry.
The Nigerian equity market experienced a second consecutive day of losses this week, shedding N730 billion on Tuesday.
The previous day, market giants like Dangote Cement and MTN Nigeria had contributed to a significant loss of N1.82 trillion.
On Tuesday, the benchmark index, the All-Share Index, and the market cap declined by 1.30 percent to 101,060.67 points and N55.298 trillion, respectively.
The year-to-date return for the market also decreased further to 35.16 percent from 36.94 percent the previous day.
The bearish trend was driven by sell-offs observed in medium to penny stocks.
The bearish trend was driven by sell-offs observed in medium to penny stocks.
By the end of trading, eight equities registered gains while 43 experienced losses.
The top gainers included stocks of Juli Plc, Eterna Plc, and VeritasKap, which saw increases of 9.94 percent, 6.17 percent, and 5.97 percent, respectively, closing at N1.77, N17.20, and N0.71.
Leading the losers’ chart was Honeywell Flour Mills.
Leading the losers’ chart was Honeywell Flour Mills, which experienced a 10 percent decline, closing at N3.60. BUA Cement also saw a significant drop of 9.98 percent, closing at N142.95, while PZ Cussons, reporting negative asset value in its half-year report, dipped by 9.75 percent to N27.30.
Trading activity declined further, with total deals, volume, and value recording significant decreases. Total deals fell by 9.34 percent to 8,783 trades, while total volume and value decreased by 6.46 percent and 10.90 percent to 256.16 million units and N6.63 billion, respectively. The number of stocks traded on Tuesday closed at 118.
Four out of the five sectoral sub-indexes closed in the red zone, with the Oil & Gas sector being the sole gainer for the day, driven by Eterna Plc.
The volume and value drivers of the market trend for the day were United Bank for Africa, Geregu Power, and Transcorp Plc. Transcorp emerged as the most traded security in terms of volume, with 39.75 million units changing hands in 640 trades, while Geregu Power led in terms of value, totaling N1.11 billion.
Nigeria’s government has launched an audit of a N22.7 trillion loan obtained from the Central Bank of Nigeria (CBN) through the “Ways and Means” program during the previous administration. Finance Minister Wale Edun announced the audit at the Public Wealth Management Conference, stating it will inform the government’s decision on loan repayment.
Concern over Transparency: The “Ways and Means” program allows the government to borrow from the CBN for short-term needs, but critics argue it was misused during the prior administration, potentially fueling inflation. Auditing the loan aims to ensure transparency and identify potential irregularities.
Repayment Uncertain: Edun emphasized the audit will determine whether the government chooses to repay the loan or challenge its legitimacy. This decision holds significant implications for Nigeria’s fiscal management and debt profile.
Tackling Inflation: The minister also highlighted the government’s commitment to reducing inflation by controlling liquidity and managing expenditures. Recent food releases are part of efforts to address rising commodity prices and improve citizens’ well-being.
Corruption Probe: Separately, the Economic and Financial Crimes Commission (EFCC) is investigating former CBN Governor Godwin Emefiele, under whose watch the loans were approved. This adds another layer to the situation, potentially influencing the audit’s findings and repayment decision.
Uncertainties Remain: While the audit is underway, its timeline and specific focus haven’t been disclosed. The potential consequences of either repayment or non-repayment are also subject to speculation.
Nigeria’s currency, the naira, plunged to a historic low against the dollar on Tuesday, prompting President Bola Tinubu to unveil a $10 billion plan to boost foreign exchange liquidity and stabilize the economy.
The naira traded at N1,850 per dollar on the parallel market, exceeding the previous record of N1,830 set in the previous week. The official market, however, saw a slight uptick with the naira appreciating to N1,551 per dollar, likely due to increased forex intervention by the Central Bank of Nigeria.
The currency’s depreciation fueled concerns about rising inflation and economic instability. Nigerians already grapple with high food and fuel prices, and a weaker naira could further exacerbate these burdens.
In response, President Tinubu, represented by Vice President Kashim Shettima at the Public Wealth Management Conference in Abuja, announced the government’s intention to raise $10 billion to improve foreign exchange liquidity. The plan aims to stabilize the naira and stimulate economic growth.
“At the core of this is ensuring optimal management of the assets and investments of the Federal Government towards unlocking their revenue potential,” said Stanley Nkwocha, Senior Special Assistant to the President on Media & Communications. The government aims to “double the GDP growth rate and significantly increase the GDP base over the next 8 years.”
Transparency and accountability are key principles of the plan.
According to President Tinubu. Improved corporate governance, innovative partnerships, and attracting alternative investment capital are expected to significantly increase returns. These returns, he stated, will be directed towards crucial sectors like education, healthcare, housing, power, and roads, aiming to “lift millions out of poverty and stimulate sustainable economic development and job creation for the youth.”
Experts remain cautious about the success of the $10 billion plan. Attracting investors and ensuring efficient utilization of funds are critical factors. Some economists argue that addressing deeper issues like Nigeria’s dependence on oil revenue and structural economic weaknesses are equally important for long-term economic stability.
Nigerians anxiously await the impact of the government’s intervention plan. Whether it will provide relief from the current economic challenges and stabilize the naira remains to be seen.
The Loan: The Senate alleges the Buhari administration obtained N30tn through “Ways and Means,” a controversial program where the Central Bank directly finances government deficits.
The Charges: Critics claim this arrangement weakened the Central Bank, fueled inflation, and exacerbated food shortages, leading to the current economic hardships faced by Nigerians.
The Probe: The Senate will summon key figures from the Buhari era, demanding transparency and accountability for how the loan was used.
Beyond Black and White:
Government’s Perspective: The current administration, led by President Tinubu, supports the probe, calling it a necessary step towards identifying and addressing the root causes of the economic crisis. They see it as an opportunity to learn from past mistakes and implement better policies.
Opposition’s Response: While welcoming the investigation, opposition parties like the PDP express skepticism about the Senate’s true intentions. They point to the Senate’s previous track record of supporting the government and question their commitment to a truly thorough and unbiased investigation. Some, like the Labour Party, even suggest the probe serves as a political tool rather than a genuine attempt to hold the previous government accountable.
Echoes of Unease:
Inflation Bites: Nigerians grapple with skyrocketing food prices, a depreciating currency, and a general decline in living standards. Many citizens view the probe as a potential step towards alleviating their suffering and ensuring such economic turmoil doesn’t repeat itself.
Concerns Linger: Some analysts worry that the investigation might get bogged down in political gamesmanship, hindering its effectiveness. Others fear it could exacerbate existing political tensions within the country.
A Nation Divided, Yet United in Seeking Answers:
The N30tn loan probe promises to be a contentious process, exposing underlying political divides and economic anxieties. While its ultimate impact remains to be seen, one thing is certain: Nigerians crave answers and solutions to their economic woes. Whether the Senate’s investigation delivers on these expectations remains the lingering question hanging over the nation.
