Business - Page 3 of 267 - NewsNow Nigeria

15May

By Afolake IbidunNo Comments

Business

Presidential Committee to Roll Out Nationwide Deployment of CNG Starting May 29

An official announcement has been made by the Presidential Compressed Natural Gas Initiative (PCNGI) regarding the commencement of a nationwide deployment commencing on May 29. This follows a mandate from President Bola Tinubu for all Ministries, Departments, and Agencies (MDAs) to initiate the procurement of vehicles powered by compressed natural gas. In a statement released by Michael Oluwagbemi, who serves as the Programme Director and Chief Executive of the Initiative, it was disclosed that President Tinubu will virtually commission critical gas supply projects at NNPCL between May 15 and 22 in Abuja. “In adherence to our commitment to promoting sustainable energy solutions and reducing carbon footprints, PCNGI is embarking on an extensive pre-launch schedule with the objective of ...

Inflation rate in Nigeria hits 33.69% in April as economic situation worsens

15May

By Afolake IbidunNo Comments

Business

Inflation rate in Nigeria hits 33.69% in April as economic situation worsens

April saw Nigeria's inflation rate climbing to 33.69%, up from 33.20% in March, reflecting a deepening economic crisis in the nation. The latest consumer price index and inflation report released by the National Bureau of Statistics (NBS) revealed these figures. The data indicates a continuous upward trend in inflation since President Bola Ahmed Tinubu took office in May of the previous year. In comparison, the inflation rate in Nigeria stood at 22.41% in May last year, showing a sharp increase to 33.69% in April. Prior to this, headline inflation rates were recorded at 29.9% in January 2024, 31.70% in February, and 33.20% in March. Month-on-month, the inflation rate rose by 0.49%. Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), recently affirmed the commitment of t...

Nigeria Claims Top Spot as Africa’s Largest Crude Oil Producer, According to OPEC

15May

By Afolake IbidunNo Comments

Business

Nigeria Claims Top Spot as Africa’s Largest Crude Oil Producer, According to OPEC

In April, Nigeria once again became the leading producer of crude oil in Africa. In its latest monthly report released on Tuesday, the Organization of Petroleum Exporting Countries (OPEC) revealed this development. The report disclosed that Nigeria's daily average crude oil production surged to 1.28 million barrels per day (bpd) in April. Compared to the 1.23 million bpd recorded in March, this current output signifies a 4.07% increase, marking the first month-to-month production growth. According to the report, Nigeria has reclaimed its position as Africa's top oil producer, with Algeria following closely with an output of 907,000 bpd. OPEC stated, "Crude oil output saw rises mainly in Congo and IR Iran, with production in Nigeria, Iraq, and Venezuela experiencing declines." It's wor...

BDC Operators Point to CBN for Naira Depreciation

15May

By Afolake IbidunNo Comments

Business

BDC Operators Point to CBN for Naira Depreciation

Depreciation of the Naira in the foreign exchange market is being attributed by Bureau De Change (BDC) operators to the Central Bank of Nigeria's (CBN) insufficient allocation of foreign currency. An official from the Association of Bureaux De Change in Nigeria, speaking anonymously on Wednesday, highlighted this concern. The official expressed dismay over the weakening of the Naira against the Dollar. In the parallel market, the Naira slipped to N1,520 on Tuesday, down from N1,500 the day before, according to Mistila Dayyabu, a BDC operator in Wuse Zone 4 Abuja. Similarly, FMDQ data indicated that the Naira closed at N1,520.40 per Dollar on Tuesday, compared to N1,478.11 previously. Reflecting on the Naira's recent depreciation, the ABCON official noted that the amount of FX allocate...

Gas Price Increase Threatened by Shell Fire Incident in Nigeria

15May

By Afolake IbidunNo Comments

Business

Gas Price Increase Threatened by Shell Fire Incident in Nigeria

Following the fire at Shell’s Gbaran facility in Bayelsa, there is a possibility of a rise in the price of Liquefied Natural Gas in Nigeria. This comes amidst a surge in the country’s Liquefied Petroleum gas prices. Explosions and smoke were observed at Shell’s Gbaran facility on Tuesday. This facility plays a vital role in Nigeria’s LNG gas feedstock project, processing close to 2 billion standard cubic feet of gas on a daily basis. Despite the incident, Shell has assured that there will be no immediate operational shutdown of the facility. Meanwhile, the company is actively investigating the incident details and evaluating potential impacts on its operations. Shell stated, “We are closely monitoring the reports of smoke near our Gbaran Central Processing Facility in Bayelsa St...

Impact of Naira Devaluation and CBN Interest Rate Hikes on Nigerian Banks’ Profits

15May

By Afolake IbidunNo Comments

Business

Impact of Naira Devaluation and CBN Interest Rate Hikes on Nigerian Banks’ Profits

Amidst economic challenges, the combination of Naira devaluation and Central Bank of Nigeria's interest rate adjustments resulted in a significant boost to the earnings of some of the largest banks in Nigeria during the first quarter of 2024. These events marked a positive turnaround for the banks, as the naira devaluation translated into notable foreign exchange gains and improved their financial standing. An analysis of the most recent financial reports of eight Nigerian banks revealed these impressive results. During Q1, Zenith Bank Plc, United Bank for Africa (UBA) Plc, Access Holdings Plc, FCMB Group Plc, Stanbic IBTC Holdings Plc, Fidelity Plc, Guaranty Trust Holding Company (GTCO) Plc, and Wema Bank Plc collectively saw their after-tax profits soar by 264.5%, reaching N1.13 tri...

Latest bond auction in Nigeria: N380.76bn raised with lowest subscriptions seen in 2024

14May

By Afolake IbidunNo Comments

Business

Latest bond auction in Nigeria: N380.76bn raised with lowest subscriptions seen in 2024

An auction for bonds in Nigeria has resulted in the government raising a total of N380.76 billion. This recent auction marked the lowest subscriptions seen so far this year, with activities taking place in May. In comparison to the previous month's FGN bond auction, this amount reflects a decline of 39 per cent. The total subscription amount across all tenors was N551.316 billion, a notable drop from the N920.08 billion recorded in the prior month. Additionally, the Debt Management Office reported a non-competitive allotment of N301.30 billion. The focus was on the new nine-year bond, which garnered subscriptions amounting to N373.875 billion. Out of this subscription, N285.124 billion was allotted, with N179.00 billion coming from non-competitive bids. Bids for the bonds ranged from ...

Bureau de Change Operators Anticipate CBN’s Intervention Amid Naira Depreciation

14May

By Afolake IbidunNo Comments

Business

Bureau de Change Operators Anticipate CBN’s Intervention Amid Naira Depreciation

For the second consecutive week, Bureau De Change (BDC) operators, eagerly await the intervention of the Central Bank of Nigeria to address the continued depreciation of the Naira. According to FMDQ data, the Naira fell to N1520.40 against the US Dollar on Tuesday, down from N1478.11. This signifies a depreciation of N42.29 against the Dollar in the official market when compared to the N1478.11 rate on Monday. Similarly, in the parallel market, the Naira declined to N1520 per Dollar on Tuesday, a drop from N1500 the day before. The data indicates a marginal difference of N0.40 between the official and parallel foreign exchange markets on Tuesday. Addressing the situation, Mistila Dayyabu, a BDC operator at Wuse Zone 4, emphasized the urgency for the Central Bank to inject mor...

Jesustega Onakpesa: Tinubu’s Administration Promises to Reduce Inflation

14May

By Afolake IbidunNo Comments

Business

Jesustega Onakpesa: Tinubu’s Administration Promises to Reduce Inflation

In a recent address, Jesustega Onakpesa, the Chairman and Founder of Tinubu Media Support Group, expressed confidence in President Bola Ahmed Tinubu's ability to tackle Nigeria's high inflation rates. During a press briefing on Tuesday, Onakpesa emphasized the commitment of Tinubu's administration to address the inflation challenge. Notably, Nigeria's headline inflation saw a significant surge from 33.20% in March 2024 to 22.41% when Tinubu assumed office in May of the same year. Onakpesa attributed the spike in inflation, particularly in food prices, to the avarice of business owners, lamenting the unfair price hikes in the country. Speaking on the matter, Onakpesa stated, "The President's policies have been instrumental in preventing a more severe inflation crisis, and we ar...

April Inflation Rate for Nigeria Set for Release Wednesday

14May

By Afolake IbidunNo Comments

Business

April Inflation Rate for Nigeria Set for Release Wednesday

Set for disclosure on Wednesday, May 15, the Nigerian government will unveil the inflation rate for April. Typically, the National Bureau of Statistics releases its monthly inflation data around the middle of the month. Recent forecasts by the Financial Derivatives Company suggest that the country's headline inflation may climb to 34.25% in April compared to 33.22% in March. This projected increase is attributed to factors such as petrol scarcity in April, the ongoing foreign crisis, and other prevailing economic conditions. Additionally, Olayemi Cardoso, the Governor of the Central Bank of Nigeria, stated that the Monetary Policy Committee is committed to lowering inflation rates. Cardoso emphasized that the MPC will persist in elevating interest rates, which were at 24.75% in...