Fitch Downgrades Union Bank of Nigeria to 'Junk' Status"

Fitch Ratings has downgraded Union Bank of Nigeria PLC's Long-Term Issuer Default Ratings (IDR) to 'CCC' from 'B-', citing a prolonged breach of the bank's total capital adequacy ratio (CAR) requirement of 10% and uncertainties regarding the timeline for restoring compliance.

The downgrade reflects concerns about the bank's viability and ability to meet its regulatory capital requirements. Fitch estimates that Union Bank of Nigeria has breached its CAR requirement due to a significant increase in its regulatory risk reserve, which is deducted from capital for the purpose of capital adequacy computations.

The bank's near-term prospects will depend on continued sound internal capital generation and a timely execution of the recapitalization plan agreed upon by new management with the Central Bank of Nigeria (CBN). Fitch noted that progress is being made in reconstituting the board and the bank continues to operate as a going-concern

President Bola Ahmed Tinubu's N200 Billion Intervention Fund Programme: A Boost to Nigeria's Industrial Sector

Since assuming office, President Bola Ahmed Tinubu has taken significant steps to bolster Nigeria's industrial and manufacturing sectors. One of the key initiatives is the N200 billion Presidential Intervention Fund Programme, aimed at supporting micro, small, and medium scale enterprises (MSMEs) and manufacturing companies. This programme is a testament to the president's commitment to driving economic growth and job creation.

The fund is divided into three components: the Presidential Conditional Grant Scheme (PCGS), the FGN MSME Intervention Fund, and the FGN Manufacturing Sector Fund. The PCGS provides N50,000 grants to nano-business owners, especially women and young people, across all local government areas. The FGN MSME Intervention Fund offers loans of up to N1 million to at least 75,000 beneficiaries, while the FGN Manufacturing Sector Fund provides support to eligible manufacturing businesses with loans of up to N1 billion


Nigeria's external debt service obligations have risen sharply, reaching US$1.1 billion in the first quarter of 2024, a 40% year-on-year increase. 
This surge in debt servicing costs has raised concerns among economists and financial experts, who warn of the growing financial strain caused by the country's rising external debt and the steep depreciation of the Naira.
The breakdown shows that US$288 million of the debt service went toward market debt, while US$832 million was allocated to non-market debt, primarily loans from multilateral and bilateral lenders.
 The increase is largely attributed to principal repayments amounting to US$679 million, with US$551 million directed to multilateral lenders and US$128 million to bilateral lenders.
In local currency terms, the US$1.1 billion in debt service payments translates into N1.49 trillion, surpassing the federal government’s Q1 2024 revenue of N1.37 trillion. This has resulted in a concerning external debt service-to-revenue ratio of 108%

*Nigerians Seek Transparency in Government's N625Bn Aid Distribution*

The Nigerian government's recent claim that it has distributed N625 billion to 25 million citizens has sparked outrage and skepticism among the public ¹. The announcement, made by the Minister of Finance alongside President Bola Tinubu, was intended to alleviate economic hardships, but has instead raised concerns over transparency and accountability ¹. Many citizens are questioning the legitimacy of the process and the identities of the purported beneficiaries, with some even alleging corruption against government officials ¹.

Critics are demanding evidence of the beneficiaries, asking, "Where are the 25 million Nigerians?" ¹. The government's assertion that many beneficiaries lack bank accounts has not mitigated skepticism, and the requirement for all Nigerians to have a National Identification Number (NIN) has raised further questions ¹. With the public demanding clarity regarding the distribution process and proof that assistance has reached those in need, the government faces urgent demands for transparency ¹.



Labour Warns FG of Imminent Unrest over Fresh Petrol Price Hike

On the heels of the recent unprecedented hike in the pump price of Premium Motor Spirit (PMS), the organised Labour on Wednesday, frowned at the latest hike, saying it was over-stretching Nigerians.
It advised the government to be wary of the silence of Nigerians in the midst of excruciating hardship and misery being inflicted on them, saying even a goat can bite when pushed to the wall.
This is even as an employer group, the Chemical and Non-Metallic Products Employer’s Federation, CANMPEF, said the petrol price increases, occasioned by subsidy removal, had led to an increase in transportation/logistics, production costs, the decline in household income and purchasing power.
Labour’s warning came on a day the Independent Petroleum Marketers Association of Nigeria, IPMAN, said its members wait for days to load petrol from Dangote Refinery in Lagos, despite paying N40 billion to the Nigerian National Petroleum Company Limited, NNPCL

*Nigerians Call for Power Minister's Sacking as Outage Lingers

Nigerians are demanding the removal of Power Minister Adebayo Adelabu due to an 11-day power outage in Northern states ¹. The President of the Nigeria Consumer Protection Network, Kunle Olubiyo, and the Lead Director of the Centre for Social Justice, Eze Onyekpere, are among those calling for Adelabu's sacking ¹. The outage has caused widespread disruption, with residents of Kaduna and other parts of Northern Nigeria crying out that the blackout has grounded businesses in the region ¹.

Nigeria Aims to Launch Diaspora Bond in the US to Reach $1 Billion in Monthly Remittances 

Nigeria is considering launching a diaspora bond in the United States to achieve its goal of $1 billion in monthly remittance inflows. The Central Bank of Nigeria's governor, Olayemi Cardoso, announced this during an interview with Reuters in Washington, DC. Cardoso noted that Nigerians abroad are eager to invest in their home country, and the government's recent reforms have already led to a significant increase in remittances. The diaspora bond, which could be launched in 2025, aims to tap into the investment appetite of Nigerians living in the United States, who are keen to invest in assets and businesses back home.


FG Announces Plan to Increase Value-Added Tax (VAT) Rate to 15%



In a move aimed at boosting local revenue mobilization and strengthening public finance buffers, the Federal Government of Nigeria has announced plans to increase the Value-Added Tax (VAT) rate from 7.5% to 15%. This significant hike is part of a broader effort to address the country's low revenue profile and improve tax compliance, particularly in the area of company income tax.

According to a document prepared by the Ministry of Finance, the government intends to "progressively increase the VAT rate from 7.5% to 15%." This move is expected to help Nigeria achieve an 18% tax-to-GDP ratio, which is the average across major economies in Africa. Currently, the country's tax-to-GDP ratio stands at 10%, one of the lowest in the Sub-Saharan Africa region.

The planned increase in VAT rate has been a topic of discussion for several months, with rumors circulating about a potential hike. In September, the Minister of Finance, Wale Edun, denied plans to increase the VAT rate to 10%, following criticism from Nigerians, including former Vice President Atiku Abubakar.

However, the latest announcement confirms that the government is moving forward with its plan to increase the VAT rate. The World Bank has also advised the federal government to raise the VAT rate to increase non-oil revenue and strengthen fiscal resources.



Telcos Threaten to Disconnect Banks from USSD Services Over N250bn Debt

The CEO of MTN Nigeria, Karl Toriola, has warned that telecommunication companies (telcos) may disconnect banks from the unstructured supplementary service data (USSD) platform due to a debt of N250 billion. USSD, also known as quick or feature codes, is a global system for mobile communications (GSM) protocol used for financial transactions. The debt has been accumulating since 2019, and telcos have been seeking a tariff adjustment to reflect the realities of the economy.

Toriola stated that the debt has become unsustainable for the operators and may lead to a disconnection of banking services on the USSD platform, subject to regulatory approval. He expressed optimism that the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) would resolve the impasse soon.

The telecom sector is facing a critical situation, with MTN and other operators struggling to maintain profitability due to naira devaluation, inflation, and rising costs. Toriola warned that if the government does not approve a tariff adjustment, the company may shut down, and the industry may collapse.


FG, States, LGs Share N1.298trn September Revenue



The Federal Government, States, and Local Government Councils have shared a total sum of N1.298 trillion for the month of September 2024. This revenue distribution was announced at the October 2024 meeting of the Federation Accounts Allocation Committee (FAAC) in Abuja.

According to the communiqué issued by FAAC, the total revenue of N2.258 trillion was available in September 2024. However, total deductions for cost of collection, transfers, interventions, and refunds amounted to N878.946 billion, leaving a net distributable revenue of N1.298 trillion.

The breakdown of the distribution shows that the Federal Government received a total sum of N424.867 billion, while the State Governments received N453.724 billion. The Local Government Councils received N329.864 billion, and a total sum of N90.415 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue



In a bid to protect its residents from the scourge of preventable diseases, the Lagos State Government (LASG) has launched a massive immunization drive in partnership with the United Nations Children's Fund (UNICEF). The campaign, which kicked off on October 19th, aims to immunize 18 million Lagos residents against measles, yellow fever, and other vaccine-preventable diseases.

According to the Permanent Secretary, Lagos State Primary Healthcare Board, Abimbola Bowale, the goal of the exercise is to achieve herd immunity by ensuring that at least 95% of the eligible population receive the measles vaccine and 80% receive the yellow fever vaccine. He emphasized that the activities are not merely operational tasks but life-saving interventions that contribute to the health and well-being of future generations.

The State Immunization Programme Coordinator, IPC for Lagos State Primary Healthcare Board, Adetola Akinpelu, noted that the outbreaks show an immunity gap in the community, which the state-wide immunization activity aims to close while ramping up routine immunization processes in the states.

UNICEF Social and Behavioural Change Specialist, Aderonke Akinwole, said the fund intends to employ the help of journalists to combat myths through credible and easy-to-understand content, which will promote and increase vaccine trust and acceptance. She noted that measures are in place in collaboration with the Lagos State Government to deploy qualified personnel, potent vaccines, and other equipment to ensure the success of the exercise.


The compulsory taxpayer identification number (TIN) for individuals in Nigeria has sparked intense debate ¹. The policy aims to broaden the tax net and increase revenue, but critics worry about potential privacy violations, increased surveillance, and the burden on small businesses and individuals ¹.

Individuals and business entities chargeable under different conditions as prescribed by the government are required to have a TIN ¹. The Federal Inland Revenue Service (FIRS) established the TIN in 2008 to enhance accountability of tax revenue ¹. The TIN is a dynamic consecutive set of numbers generated electronically to all forms of taxpayers, made up of individuals and corporate bodies ¹.

Supporters argue that the TIN will enhance taxpayer identification and registration, bring more taxpayers into the tax net, minimize errors and mistakes associated with manual registration, and reduce multiple taxations ¹. However, critics are concerned about the potential impact on privacy and the additional burden on individuals and small businesses 

what we are focusing on today 

Banks' Tech Upgrade Causes Service Disruptions Nationwide

Nigerian bank customers are experiencing service disruptions nationwide as banks embark on a massive technology upgrade. The upgrade, which aims to improve operational efficiency and enhance customer experience, has already caused disruptions for customers of several banks.

Industry sources say that the upgrade is a necessary evil, as banks need to strengthen their technology infrastructure to keep up with the increasing demand for digital banking services. However, the upgrade process is complex and time-consuming, involving the migration of customer data and integration with various channels such as ATMs, USSD, and internet banking.

Customers are advised to be patient and prepare for potential disruptions to their banking services in the coming weeks and months. Banks are working hard to minimize the impact of the upgrade on customers, but some disruptions are unavoidable.

The upgrade is expected to bring several benefits to customers, including improved security, faster transaction processing times, and enhanced mobile banking services. However, the short-term pain of service disruptions is causing frustration for many customers.

"We apologize for the inconvenience caused by the upgrade," said a spokesperson for one of the affected banks. "We are working hard to complete the upgrade as quickly as possible and minimize the impact on our customers."

In the meantime, customers are advised to plan ahead and make alternative arrangements for their banking needs. The upgrade is expected to be completed within the next few weeks, and customers will be notified as soon as the upgrade is complete.

Some customers have taken to social media to express their frustration with the service disruptions. "I can't believe my bank is doing this to me," said one customer on Twitter. "I need to pay my bills and I can't even access my account."



This week Edition focuses on the Time for CBN to Take Action especially on the frequency fail network

The frequent breakdown of bank services in Nigeria is a clear indication that the CBN needs to take action. Customers deserve better services, and it's time for the CBN to regulate the banking sector effectively.
"We can't continue to suffer because of the CBN's inaction," said another customer. "We need reliable bank services to conduct our daily business."
The CBN needs to take decisive action to address the frequent breakdown of bank services in Nigeria. This includes regulating banks, investing in technology, enhancing cybersecurity, and providing better customer support. By taking these steps, the CBN can ensure that bank customers receive the reliable and efficient services they deserve

Emirates Airlines Makes Triumphant Return to Nigeria


Emirates Airlines has officially resumed operations in Nigeria after a two-year hiatus, with a grand inaugural flight to Lagos. The airline's leadership has confirmed that they are back for good, with daily services between Lagos and Dubai.
The return of Emirates Airlines to Nigeria marks a significant milestone in the airline's operations in the West African market. The airline's inaugural flight to Lagos was met with excitement and fanfare, with top Emirates and Nigerian aviation officials in attendance.
Adil Al Ghaith, Senior Vice President of Commercial Operations, Gulf, Middle East, and Central Asia, expressed his excitement about the airline's return, stating that Nigeria has always been one of their most important markets. Minister Festus Keyamo, Honourable Minister of Aviation and Aerospace Development, also expressed his optimism about the future, hinting at broader business opportunities between Nigeria and the UAE beyond the resumption of flights.
The return of Emirates Airlines is set to regain its position as a leading airline in the Nigerian market, offering daily services between Lagos and Dubai. This development is expected to boost trade and tourism between Nigeria and the UAE, and further strengthen the ties between the two nations.

Nigeria's 64th Independence Day is a bittersweet celebration as the country faces its worst economic crisis in generations ¹. The government's recent policies have led to a rise in the cost of living, food prices, and fuel prices, pushing many citizens into poverty ². The situation is critical, with 4.8 million people struggling to access food, and the most vulnerable groups include children, pregnant women, older persons, and people living with disabilities.

Despite the challenges, some Nigerians are finding ways to cope with the rising food prices. Many citizens are frustrated over the worsening economic situation, rise in cost of living which has significantly impacted their living condition and purchasing power in the last one year ². Some are growing their own food, like Mrs. Chioma Ndubisi, a civil servant who has started growing her own tomatoes and peppers in her backyard ². Others are buying lower quality food or eating fewer meals ².

The government has launched an urgent appeal for $306 million to provide essential assistance to those in dire need ². However, many citizens are unhappy with the government's policies and are planning to protest ². The President's reforms have brought untold hardship and further impoverished them; they are fed up with the hardship in the land, and want a reversal of his reforms and immediate return of petrol subsidy to ease their suffering ².

As Nigeria marks its Independence Day, many citizens are reflecting on the country's progress and the challenges that lie ahead ². "We have come a long way since independence, but we still have a long way to go," said Mr. Nnamani Ogbonna, a businessman ². "We need to work together to address the issues of food security and inflation, so that every Nigerian can have access to nutritious food and a decent standard of living."

Food Price Relief: Tomatoes and Yam Prices Drop Amidst Economic Hardship in Nigeria



The National Bureau of Statistics (NBS) has revealed that the prices of tomatoes and yam tubers have dropped in August 2024, providing some relief to Nigerians amidst the prevailing economic hardship. According to the NBS' Selected Food Prices Watch for August 2024, the prices of tomatoes and yams declined on a month-on-month basis, but remained high on a year-on-year basis.

The price of 1kg of tomatoes decreased by 11.07% month-on-month from N1,693.83 in July 2024 to N1,506.35. This decrease is a welcome relief for Nigerian consumers who have been struggling with high food prices. Additionally, the average price of 1kg of yam tuber decreased by 7.82% month-on-month from N1,802.84 in July 2024.

However, the price of yam tuber increased by 188.31% on a year-on-year basis from N576.39 in August 2023 to N1,661.80 in July 2024. This significant increase highlights the ongoing challenges in the food market.

Despite the drop in prices of tomatoes and yams, the prices of other essential food items such as beans, rice, bread, and eggs have continued to rise in Nigeria. The August headline and food inflation stood at 32.15% and 37.52%, respectively.

Education Gap in Nigeria's Labor Force

A recent report from the National Bureau of Statistics highlights a concerning gap in educational attainment among Nigeria's labor force ¹. The report shows that a staggering 86% of 88.9 million Nigerians in the labor force lack post-secondary education, with only 12.3 million people (14%) having received post-secondary education. This significant divide in education levels poses substantial challenges for Nigeria's competitiveness on the global stage and hinders economic growth and development.

*Breakdown of Education Levels in the Labor Force*

- 24.3 million people (81.6%) have no formal education, with 79% employed in informal sectors like agriculture and trading.
- 23.1 million individuals have primary education, with a labor force participation rate of 65.6% and an employment rate of 62.9%.
- 29.2 million people have secondary education, with a labor force participation rate of 77.7% and an employment rate of 72.5%.
- 11.7 million individuals have post-secondary education, with the highest labor force participation rate at 87.9%, but 9.4% remain unemployed.
- 606,020 individuals have postgraduate education, with the lowest unemployment rate at 3.8% and high employment rates in specialized fields.

MEDICAL INFLATION CRISIS: Nigerians Lament as Healthcare Costs Soar

A devastating medical inflation crisis is gripping Nigeria, leaving a trail of suffering and despair in its wake. The country's already fragile healthcare system is buckling under the weight of soaring medical costs, forcing patients to choose between life-saving treatments and financial ruin.

The latest statistics reveal a staggering 25% increase in medical inflation over the past year, far outpacing the country's general inflation rate. This has resulted in a catastrophic situation where patients are being turned away from hospitals due to unaffordable costs.

"We are facing a medical emergency in Nigeria," said Dr. Ahmed, a leading healthcare expert. "The government must act swiftly to address the root causes of medical inflation and ensure that healthcare is accessible to all, not just the privileged few."

The crisis has already claimed numerous lives, including a young mother who succumbed to a treatable illness due to unaffordable hospital bills. The situation is further compounded by a shortage of medical professionals, inadequate infrastructure, and a lack of affordable healthcare options

As Nigeria's economy continues to struggle, financial experts are urging the Central Bank of Nigeria (CBN) to pause interest rate hikes. This call comes ahead of the CBN's Monetary Policy Committee (MPC) meeting scheduled for Monday and Tuesday to review key monetary policies, including interest rates.

Professor Uche Uwaleke, a financial economist and Director at the Institute of Capital Market Studies, emphasized the need to stabilize the economy. He pointed out that the recent moderation in inflation, recorded in July and August, provides a compelling case for halting further rate hikes. Uwaleke also noted that major global central banks like the U.S. Federal Reserve have begun pausing or cutting rates, with institutions like the Bank of England and the European Central Bank expected to follow suit.

"The recent moderation in inflation, recorded in July and August, provides a compelling case for halting further rate hikes. Additionally, major global central banks like the U.S. Federal Reserve have begun pausing or cutting rates, with institutions like the Bank of England and the European Central Bank expected to follow suit," Uwaleke said

The Nigerian stock market witnessed a surge in buying activity on September 18, 2024, as investors showed confidence in the market. The NGXASI saw a significant increase in buying interest, with 99% of transactions being buys and only 1% being sells. The volume index stood at 0.74, indicating a moderate level of trading activity.
The top gainers of the day were Geregu, Daar, and Tantalizer, all of which saw 100% buying interest. Other notable gainers included Accorp, Afriprud, and Aiico, which saw significant buying interest as well.
On the other hand, the top losers of the day were Chams, Jagold, and UPDC, which saw significant selling pressure. However, it's worth noting that even among the losers, there were still some buyers present, indicating that the market is not entirely bearish.
The MFI (Money Flow Index) readings for the day showed that most stocks were oversold, with many stocks having MFI readings below 50.

Cash Crisis: Banks Ration Cash, ATMs Dispense Little, Customers Groan




The cash crisis in Nigeria has taken a toll on bank customers, who are struggling to access their money. Despite the presence of Automated Teller Machines (ATMs), customers are finding it difficult to withdraw cash, as banks continue to ration cash and ATMs dispense little.

The situation has led to frustration among customers, who are forced to rely on alternative means such as Point of Sale (PoS) operators, who charge exorbitant fees. The cash crunch has also led to a decrease in economic activities, as businesses struggle to access cash to operate.

Experts have attributed the cash crisis to several factors, including the high cost of running ATMs, the acquisition and merging of major banks, and the shift to digital banking. However, the situation remains a challenge for customers, who are calling on banks to address the issue.

The Central Bank of Nigeria (CBN) has initiated measures to promote a cashless economy, but the progress has been slow. The government needs to accelerate efforts to harness the benefits of a cashless society, enhance economic growth, and reduce financial risks.

EFCC to Probe Banking Chiefs Over Fraud

The Economic and Financial Crimes Commission (EFCC) has announced plans to investigate and prosecute top banking executives for their alleged roles in facilitating financial crimes in Nigeria. This move has been met with mixed reactions from stakeholders, with some hailing it as a necessary step to curb corruption and others expressing concerns about the potential impact on the banking sector.

According to the EFCC Chairman, Olanipekun Olukoyede, the commission has compiled evidence and is ready to begin prosecutions. He stated that the banking sector has been identified as a major conduit for corruption and that top officials will be held accountable.

The EFCC's move is seen as a response to the growing concern over financial crimes in Nigeria, which has led to significant economic losses and undermined public trust in the banking system. However, some experts have raised concerns about the potential impact on the banking sector, citing the need for careful handling to avoid destabilizing the financial system.

While the EFCC's plan to probe banking chiefs is a welcome move, it is crucial to ensure that the investigation is thorough, transparent, and fair. The banking sector plays a critical role in the economy, and any actions taken must be carefully considered to avoid unintended consequences.

As the EFCC prepares to take action, it is essential to remember that the fight against corruption requires a collaborative effort from all stakeholders, including the government, regulatory agencies, and the private sector. Only through a collective commitment to transparency and accountability can Nigeria hope to tackle the scourge of corruption and promote economic growth and development.

Families Struggle to Cope as Cost of Hiring House Helps Soars Amidst Inflation"

The soaring inflation and rising cost of living in Nigeria have impacted various sectors of the economy, and the domestic help industry is no exception. Many Nigerian families are being forced to reassess their reliance on maids due to the escalating expenses associated with their services. Amid this economic turmoil, the once-affordable service of hiring a housemaid has now become a luxury for many.

For families like that of Monica Etugbo, a mother of six, the burden of hiring domestic help has become overwhelming. "I need help, especially when all the children are not around," she explains, highlighting her need for assistance in managing household chores. "But with the way the economy is now, you're not able to take good care of yourself and you want to take out from the little you have, to pay somebody else? You have to manage."

Monica recounts a time when paying N10,000 to N15,000 for a maid was sufficient. However, today the cost has surged to as high as N40,000 to N50,000 per month. This increase, nearly a 300% rise, mirrors the broader inflationary trends affecting the country. Essentials like food items have seen a similar rise; for instance, Monica notes that the price of garri has jumped from N2,000 to N5,000 per paint bucket—a stark 150% increase.

She reflects on the toll this has taken on retirees and those with fixed incomes, explaining how hard it has become for people to even contemplate employing domestic help

Lagosians Feel the Heat as Fuel Prices Soar: Turning Off ACs and Turning to Public Transport"

As fuel prices continue to skyrocket in Lagos, residents are being forced to adopt new strategies to manage the increasing costs of commuting. With petrol prices now exceeding N850 per litre at NNPC stations and as high as N1,100 at other retail outlets, many are turning off their car air conditioning to save on fuel consumption. Others are exploring more fuel-efficient modes of transportation, such as public transport, to navigate the financial burden of soaring fuel costs.

The fuel price hike has led to a surge in transportation costs, with many residents seeing their expenses skyrocket. For Oluwatosin, a Lagos resident who regularly drives from the Mainland to the Island, the soaring price of petrol has made even small comforts like using his car's AC an unaffordable luxury. "The truth is, no matter your income, the fuel hike hits everyone's pocket hard," he explained. "Fuel prices affect everything—food, transportation, and daily commodities. Personally, my expenses have skyrocketed, cutting deep into my income and savings."

As fuel prices continue to climb, Lagosians are adopting a variety of strategies to manage the financial strain. While many residents are turning to public transport as a more affordable option, others are employing different tactics such as turning off their car's air conditioning, cutting down on unnecessary trips, and exploring more fuel-efficient vehicles to mitigate rising expenses

Nigeria's Economy Feels the Pinch as Oil Prices Drop to Lowest Level Since 2021

The recent drop in crude oil prices to below $70 per barrel for the first time since December 2021 has raised concerns about the impact on Nigeria's economy and the naira. The global benchmark, Brent crude, fell by 2.8% due to strong supply, demand concerns, and speculative selling. This decline in oil prices is expected to put additional pressure on the naira, which has already weakened to nearly N1,600/$ in recent weeks.
The drop in oil prices also presents a challenge for the federal government, which had set a benchmark crude oil price of $77 per barrel in the 2024 budget. Furthermore, crude oil production in Nigeria has not met the set production benchmark, and the country has been unable to meet OPEC's set quota for crude oil production

Nigerians Lament as Fuel Price Hike Crisis Continues: Dangote Accused of Manipulation



Nigerians are groaning under the weight of an unresolved crisis between the Nigerian National Petroleum Company (NNPCL) and Dangote Refinery, which has led to a fuel price hike that shows no signs of abating. The crisis has sparked intense debate and concern among stakeholders, with many calling for urgent action to resolve the impasse.
Aliko Dangote has been accused of playing high-wired politics with President Bola Ahmed Tinubu and the Federal Government over fuel price fixing. A presidential aide claimed that the Dangote Refinery is running away from pricing to avoid looking bad to Nigerians.
The official, who spoke on condition of anonymity, noted that the refinery is the sole determinant of pricing and cannot sell fuel below its cost price. This has led to accusations that Dangote is manipulating fuel prices for political gain.
NNPCL has clarified that it is not the sole off-taker for petroleum products across Nigeria, contrary to claims by MURIC. However, the statement has done little to alleviate the concerns of Nigerians, who are struggling to cope with the rising cost of fuel.

Tinubu Orders Emergency Meeting, Direct NNPCL to Reduce Fuel Price

President Bola Tinubu has directed the Nigerian National Petroleum Company Limited (NNPCL) to take immediate action to address the current fuel price hike in the country. The President's directive comes as fuel prices have soared to as high as N855 per liter in some parts of the country, causing widespread hardship and discomfort for Nigerians.

The NNPCL has been ordered to work with oil marketers to reduce the price of fuel and ensure that it is available to Nigerians at an affordable price. The President's directive is aimed at alleviating the suffering of Nigerians and ensuring that the economy is not further strained by the fuel price hike.

The NNPCL has assured the President that it will work tirelessly to ensure that the fuel price is reduced and that the product is available to Nigerians at an affordable price. The company has also assured that it will work with oil marketers to ensure that the fuel price is stabilized and that Nigerians are not further exploited.
The President's directive is a welcome relief to Nigerians who have been bearing the brunt of the fuel price hike. Many Nigerians have expressed their gratitude to the President for his prompt action in addressing the fuel price hike

Commuters Stranded as Petrol Price Skyrockets to N1000 Per Litre Amid Scarcity"

Commuters were left stranded yesterday as filling stations hiked the price of petrol to N1000 per litre, amidst a severe scarcity of the product. The sudden price increase caused widespread chaos and confusion, with many motorists queuing for hours to buy fuel.

The price hike was attributed to the federal government's clandestine increase in the pump price of premium motor spirit (PMS), which was done without prior notice to the public. The government's action was widely criticized by Nigerians, who expressed their outrage and frustration on social media.

The Nigeria Labour Congress (NLC) also condemned the government's action, describing it as a "betrayal" of the trust of Nigerian workers. The NLC president, Comrade Joe Ajaero, accused the government of being consistent in its betrayal of the people and demanded an immediate reversal of the fuel price hike.

Nigeria  Cracks Down on Price Gouging: Traders Given One Month to Reduce Prices"

The Federal Competition and Consumer Protection Commission (FCCPC) has given traders and market stakeholders a one-month ultimatum to reduce the prices of goods and services. The Commission's Executive Vice Chairman, Tunji Bello, made this announcement during a stakeholders' engagement on exploitative pricing in Abuja. Bello noted that the Commission would begin enforcement actions once the moratorium period ends.

The FCCPC has identified instances of price gouging, including a fruit blender priced at $89 in the US but sold for N944,999 in Lagos. Bello emphasized that such practices threaten the economy's stability and urged stakeholders to cooperate with the Commission. The National Association of Nigerian Traders attributed the price surge to charges on imported goods at ports and requested a task force to include their association in enforcement efforts. The FCCPC acknowledged the market stakeholders' concerns and encouraged self-reflection on the issue.

SEC Grants Legal Status to Quidax and Busha as Crypto Exchanges in Nigeria



The Nigerian Securities and Exchange Commission (SEC) has granted Approval-in-Principle to Quidax and Busha, recognizing them as legally authorized crypto trading platforms in the country. This move is a significant step towards regulating the cryptocurrency market in Nigeria.

The two exchanges were approved under the Accelerated Regulatory Incubation Program (ARIP) of the Commission. Additionally, four other companies have been admitted to test their models and technology under the Regulatory Incubation (RI) Program. These companies are Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital, and (link unavailable) Ltd.

The SEC emphasized that only approved digital exchanges and platforms are legally authorized to carry out crypto trading in Nigeria. The Commission warned the public to refrain from dealing with illegal operators and advised investors to confirm the legitimacy of entities providing investment services.

This development is a positive step towards regulating the cryptocurrency market in Nigeria, which is expected to hit $52.5 million in 2028. The SEC's move is seen as a response to the growing demand for cryptocurrency trading in the country, despite the initial negative posture of the Nigerian authorities.

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The Business NG - August 12, 2024

The Business NG - August 12, 2024

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