Economy | African News Today

Potential Implications of Seizing Domiciliary Accounts in Nigeria: Insights from a Financial Expert

6Feb

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Economy, Finance, News, Nigeria

Potential Implications of Seizing Domiciliary Accounts in Nigeria: Insights from a Financial Expert

As rumors swirl regarding the Nigerian government's purported intentions to seize funds held in domiciliary accounts across the nation, financial expert Kalu Ajah has stepped forward, via a post on X, to offer a comprehensive analysis of the potential ramifications. Drawing parallels with historical events and providing detailed insights into the operational dynamics of domiciliary accounts, Ajah's assessment sheds light on the risks and consequences associated with such actions. The Pakistani Example Ajah begins by invoking a significant episode from Pakistan's economic history, where the government initiated an emergency freeze on all foreign currency accounts (FCA) in May 1998. This drastic measure, aimed at safeguarding the economy, had far-reaching repercussions. "The primary i...

Opinion: Debt and Waste as Economic Policy – Peter Obi

9Jan

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Economy, News, Nigeria

Opinion: Debt and Waste as Economic Policy – Peter Obi

Barely 26 days to the end of its eight-year tenure, the Buhari administration got the Senate to approve a N22.7 trillion Ways and Means borrowing from the CBN. In seven years, CBN lending to the Buhari government had climbed 2700% in flagrant violation of the CBN Act. Indifferent to the illegality of the excessive ways and means borrowing, the National Assembly still approved the new Tinubu administration’s request for an N7.3 trn securitization of the existing ways and means facility just before considering the 2024 budget proposals. On the 30th of December 2023, the last working day of the year 2023, shockingly the President requested the National Assembly to approve the securitization of N7.3 trillion being the outstanding debt owed to the Central Bank of Nigeria (CBN) by ...

NLC Suspends Nationwide Protests Against Removal of Fuel Subsidy

3Aug

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Cost of Living, Labour, News, Nigeria, Petroleum

NLC Suspends Nationwide Protests Against Removal of Fuel Subsidy

The Organised Labour has suspended its proposed nationwide strike and protests against the removal of fuel subsidy, not up to 24 hours after it had embarked on the mass action. The decision was announced by the President of the Trade Union Congress (TUC), Festus Osifo, during an interview with Arise News on Thursday morning. The Labour leaders, who had previously met with President Bola Tinubu, stated that they extracted commitments from the government to address some of the issues raised during the meeting, and these commitments were to be implemented immediately. Based on this development, the TUC and the Nigeria Labour Congress (NLC) decided to suspend the strike action. The initial plan for nationwide protests and the strike action came after the Nigeria Labour Congress had met ...

Oil Marketers Want Further Price Review as Petrol Prices Soar

24Jul

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Cost of Living, Economy, News, Nigeria, Petroleum

Oil Marketers Want Further Price Review as Petrol Prices Soar

Nigeria's oil marketers have asserted that the current petrol prices in the country do not accurately reflect the market reality and are projecting yet another price review this month. This comes less than two months after the price of petrol was increased from N189 per litre to N500. The situation has sparked outrage from the public, leading to criticism from various quarters. Recently, some filling stations operated by the Nigerian National Petroleum Corporation (NNPC) increased their pump prices of petrol from N537 per litre to N617 per litre across the country. This development has further exacerbated the already strained situation for consumers and businesses. Tunji Oyebanji, a former Chairman of the Major Oil Marketers Association of Nigeria and CEO of 11 Plc, expressed his co...

Nigerian Government’s Subsidy Removal Continues to Raise Questions

30Jun

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Cost of Living, Economy, News, Nigeria, Petroleum

Nigerian Government’s Subsidy Removal Continues to Raise Questions

A closer look at the contradictory reports on subsidy removal and its impact on Nigeria's economy The Nigerian government has found itself once again embroiled in a debate over the subsidy removal, leaving citizens confused about the true status of the subsidy and its implications. Reports from 2016 and 2023 present conflicting narratives, raising questions about the government's stance on this critical issue. Back in August 2016, Vice President Yemi Osinbajo claimed that the federal government had saved a significant amount of N1.4 trillion by eliminating the oil subsidy. Addressing the public during a meeting in Kano, Osinbajo highlighted the benefits of deregulating the downstream petroleum sector, leading to increased petrol availability across the country. He also mentioned a...

Slip of the Naira at the I&E Window Continues on Wednesday

22Jun

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Economy, Finance, News, Nigeria

Slip of the Naira at the I&E Window Continues on Wednesday

In a recent development, the Nigerian Naira has witnessed a significant weakening against the United States dollar, as indicated by data released on the FMDQ securities exchange window. The Investors and Exporters (I&E) window, which serves as the official platform for forex trading, recorded a notable decline in the value of the Naira due to a substantial decrease in foreign exchange supply within the market segment. According to the data published by FMDQ, the Naira concluded Wednesday's trading at N763.17 per $1. This represents a 0.87 percent or N6.56 fall from the previous session's rate of N756.61 on Tuesday. The day started with the Naira being traded at N741.21, but it experienced a sharp decline throughout the trading session, reaching an intraday low of N815.00. This m...

Opinion: Dangote, the Sick, Adopted Child of Nigerian Government!

21Jun

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Economy, News, Nigeria, Tanzania, United States of America

Opinion: Dangote, the Sick, Adopted Child of Nigerian Government!

Earlier this week, news broke that Aliko Dangote was moving 60% of his family investment to the US.Two days after, we saw him in Tanzania promising to increase his investment in the country because he wants to support the new president, whose business decisions have been investment friendly. I am happy for him. He has sense. But as a businessman, I am not sure Dangote is a model. Don't take my word for it. Let the data speak: In October 2016, Dansa, Dangote's fruit juice company packed up because it wasn't making profit. It closed shop, owing its workers 6 months salary. He also started a $13 million tomato processing plant in March 2016 and closed shop in August 2017, saying it was because of "importation of tomato paste, shortfall in the supply of fresh tomatoes and power fa...

CBN Grants Banks Authority to Trade Foreign Exchange Freely

14Jun

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Economy, Finance, News, Nigeria, Trade

CBN Grants Banks Authority to Trade Foreign Exchange Freely

In a significant development, the Central Bank of Nigeria (CBN) has issued authorization to commercial banks, allowing them to engage in the unrestricted trading of foreign exchange at market-determined rates. This move effectively empowers banks to sell forex based on prevailing market rates, marking a departure from the previous tightly controlled exchange rate system. Notably, some banks have already set the USD to Naira rate within the range of N699 to N750, indicating that Nigeria is transitioning towards a freely floating exchange rate regime, aligning with President Bola Ahmed Tinubu's commitment to unifying the country's exchange rates. In response to this development, Dr. Andrew Nevin, the Advisory Partner & Chief Economist of PricewaterhouseCoopers (PwC), shared his in...

Breaking: CBN Governor, Emefiele Suspended by President Tinubu

9Jun

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Breaking News, Corruption, Economy, Justice, News, Nigeria

Breaking: CBN Governor, Emefiele Suspended by President Tinubu

President Bola Ahmed Tinubu has suspended the Central Bank Governor, Mr Godwin Emefiele, CFR, from office with immediate effect. This decision was made in light of the ongoing investigation of his office and the planned reforms in the financial sector of the economy. The suspension of the Central Bank Governor has caused widespread concern and criticism. The President does not have the power to suspend the Central Bank Governor. The power to remove the CBN Governor is vested in the President and the Senate jointly, as stated in Section 11(2) of the Central Bank of Nigeria Act, 2007. Mr Emefiele has been directed to immediately hand over the affairs of his office to the Deputy Governor (Operations Directorate), Mr. Folashodun Adebisi Shonubi, who will act as the Central Bank Governor...

31May

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Economy, News, Nigeria, Petroleum

Subsidy: NNPC Effects New Fuel Prices

The Nigerian National Petroleum Corporation (NNPC) has finally announced the long-awaited price for petrol following the removal of the controversial subsidy, which cost almost $10bn annually. The move was made on Wednesday morning to provide clarity around prices after the subsidy was removed. According to BusinessDay, NNPC now retail fuel at N488 a litre at its station on Kingsway Ikoyi in Lagos, while the NNPC Mega Station at Lagos Bus Stop in Port Harcourt sells for N511 per litre. NNPC is the sole supplier of petrol in Nigeria, and it is expected that other marketers will take a cue from NNPC's prices and adjust their own pump prices accordingly. NNPC Fuel Prices from May 31 2023 Analysts have noted that since NNPC has implemented different pump prices for different cities, ...