Dons EzeNIGERIA’S MOBILE SUBSCRIPTIONS HIT 157.3 MILLION IN OCTOBER, MTN AIRTEL GAIN
NIGERIA’S MOBILE SUBSCRIPTIONS HIT 157.3 MILLION IN OCTOBER, MTN, AIRTEL GAIN Nigeria’s mobile subscription base increased to 157.3 million in October 2024 from 154.6 million in September, signaling the beginning of recovery after months of decline. The growth was driven by two network operators, MTN, and Airtel, that recorded an increase in their subscriber base in the month under review. This followed an extensive audit conducted by the Nigerian Communications Commission (NCC), and the implementation of the NIN-Sim linkage exercise, which plunged the country’s subscriptions database by 64.3 million lines between March and September. With the growth in actively connected lines recorded by the operators, the country’s teledensity, which measures the number of active telephone connections per 100 inhabitants living within an area, also rose to 72.7% from 71.46% recorded in September. According to NCC, the teledensity is calculated based on a population estimate of 216 million. How the operators fared The NCC’s statistics show that MTN, which is the largest operator by subscriber number, boosted the total industry database with a 2.2 million increase in its subscriptions. This brought its total active subscriptions to 80.3 million from 78 million it recorded in September 2024. What you should know Aside from the NIN-SIM linkage exercise which ensured that all SIMs not linked with the users’ NIN were disconnected from the networks, the NCC said it also carried out an audit on the telco’s databases, which led to the huge decline in the country’s subscription number from 219 million in March this year to 154 million in September. While noting that the audit aimed to eliminate inactive and improperly registered lines, the NCC in the process, said it discovered that one network operator had misclassified approximately 40 million inactive subscribers as active. These lines had generated no revenue for over 90 days, breaching the NCC’s guidelines for determining active users and distorting industry data.
MARKETERS EXPECT CHEAPER PETROL AS DANGOTE CUTS PRICE TO N899.50/LITRE
MARKETERS EXPECT CHEAPER PETROL AS DANGOTE CUTS PRICE TO N899.50k/LITRE There is cautious optimism among Nigerians over reduction in fuel price following the decision of Dangote Refinery to slash price in what it called a Christmas/New Year bonanza. Dangote had reduced the price to N899.50k per litre, to provide the much-needed relief for Nigerians ahead of the holiday season. In a statement issued by the Group Chief Branding and Communications Officer of Dangote Group, Anthony Chiejina, the company also introduced a special offer to further benefit consumers. In addition to the holiday discount, Dangote Petroleum Refinery is allowing consumers to purchase an additional litre of fuel on credit for every litre bought on a cash basis. “To alleviate transport costs during this holiday season, Dangote Refinery is offering a holiday discount on PMS. From today, our petrol will be available at N899.50 per litre at our truck loading gantry or SPM. Furthermore, for every litre purchased on a cash basis, consumers will have the opportunity to buy another litre on credit, backed by a bank guarantee from Access Bank, First Bank, or Zenith Bank,” said Chiejina. Daily Trust reports that the Nigerian Petroleum Company Limited (NNPCL) had earlier slashed its price from N1,025 in Lagos to N1,010. Similarly, most major marketers have reduced their prices though none of them is selling below N1,000 at the moment. Experts say the development represents the gain of deregulation, saying the decision by Dangote would further crash the price of PMS. Speaking with our correspondent, National Public Relations Officer of IPMAN, Alhaji Olanrewaju Okanlawon told our correspondent that the effect of the reduction by Dangote should be expected next week. Energy expert, Dr. Ayodele Oni stated that the reduction in prices “May alleviate public dissatisfaction and bolster confidence in the deregulation process.”
DANGOTE REFINERY, NNPCL RESUME FIGHT OVER $1B DOLLAR LOAN
DANGOTE REFINERY, NNPCL RESUME FIGHT OVER $1BN LOAN Dangote Group, owners of Dangote Refinery, and the Nigerian National Petroleum Company Limited, NNPCL, have clashed over a $1 billion crude oil-backed loan. Recall that barely 24 hours ago, in a statement credited to NNPCL spokesperson Olufemi Soneye, the state-owned oil firm said it secured a $1 billion loan backed by crude to support the Dangote Refinery during liquidity challenges. However, Dangote Group spokesperson, Anthony Chijiena, has described NNPCL’s claim as ‘misinformation’. The company clarified that the $1 billion crude backed loan is about five percent of the total investment that went into building the 650,000 barrels per day refinery. According to him, it is inaccurate to say NNPCL facilitated $1 billion for Dangote Refinery amid liquidity challenges. Chijiena explained that NNPCL had proposed a 20 percent stake investment valued at $2.76 billion in the Dangote Refinery, but that didn’t materialise. He noted that NNPCL was able to invest $1 billion, which amounts to 7.24 percent equity value. “Our decision to enter into a partnership with NNPCL was based on recognition of their strategic position in the industry as the largest offtaker of Nigerian crude and, at the time, the sole supplier of gasoline into Nigeria. “We agreed on the sale of a 20 percent stake at a value of $2.76 billion. Of this, we agreed that they will only pay $1 billion while the balance will be recovered over a period of 5 years through deductions on crude oil that they supply to us and from dividends due to them. “If we were struggling with liquidity challenges, we wouldn’t have given them such generous payment terms. “As of 2021, when the agreement was signed, the refinery was at the pre-commission stage. In addition, if we were struggling with liquidity issues, this agreement would have been cash-based rather than credit-driven. “Unfortunately, NNPCL was later unable to supply the agreed 300 thousand barrels a day of crude, given that they had committed a greater part of their crude cargoes to financiers with the expectation of higher production, which they were unable to achieve. “We subsequently gave them a 12-month period for them to pay cash for the balance of their equity given theirinability to supply the agreed crude oil volume. “NNPCL failed to meet this deadline, which expired on June 30th, 2024. As a result, their equity share was revised down to 7.24 percent. These events have been widely reported by both parties. “It is, therefore, inaccurate to claim that NNPCL facilitated a $1 billion investment amid liquidity challenges. “Like all business partners, NNPCL invested $1 billion in the refinery to acquire an ownership stake of 7.24 percent. That is beneficial to its interests,” the Dangote Group statement said. Earlier, in September 2024, DAILY POST reported that Dangote Refinery and NNPCL locked horns over petrol pricing.
SENATE MOVES TO BAN USE OF DOLLAR, OTHER FOREIGN CURRENCIES IN NIGERIA
SENATE MOVES TO BAN USE OF DOLLAR, OTHER FOREIGN CURRENCIES IN NIGERIA A bill seeking to prohibit the use of foreign currency in Nigeria has scaled first reading in the PSenate. The bill, titled “A Bill for an Act to Alter the Central Bank of Nigeria Act, 2007, No. 7, to Prohibit the Use of Foreign Currencies for Remuneration and Other Related Matters,” was sponsored by the Chairman of the Senate Committee on Reparations and Repatriation, Senator Ned Nwoko. The proposed legislation is aimed at ensuring all payments, including salaries and other transactions are done using the local currency, naira. According to Senator Nwoko, the widespread use of foreign currencies in the country’s financial system undermines the value of the Naira, which he said, perpetuates economic challenges. The lawmaker described the use of the Dollar, Pound Sterling, and other foreign currencies for transactions in Nigeria as a colonial relic that continues to hinder Nigeria’s economic independence.
DESPITE LOCAL REFINERIES, NIGERIA SPENDS N9.1 TRILLION ON PETROLEUM IMPORTATION
DESPITE LOCAL REFINERIES, NIGERIA SPENDS N9.1 TRILLION ON PETROLEUM IMPORTATION Despite Local Refineries, Nigeria Spends N9.1trillion On Petroleum Importation In Nine Months Which Is Double Of 2023 A review of data from the National Bureau of Statistics (NBS) has shown that Nigeria imported refined petroleum to the tune of N9.1trillion between January and September 2024. In the first quarter of 2024, the refined petroleum importation gulped N2.6trillion, in the second quarter of 2024, it gulped N3.2trillion while taking N3.3trillion in the third quarter of 2024. This development comes amid controversies on local production and patronage of refined petroleum in the country. The importation of petroleum worth N9.1trillion between first and third quarter of 2024, means that the country spent twice what it spent in importation of refined petroleum in same period of 2023. Between Q1 and Q3, 2023, N4.5 trillion was spent on refined petroleum importation by Nigeria. According to the official statistics body, NBS, data, in the third quarter of 2023, the country imported N1.9 trillion worth of motor ordinary spirit (petroleum), it imported petroleum worth N1.2 trillion in the second quarter of 2023, and N1.4 trillion in the first quarter of 2023. Nigeria has had to rely on importation of refined petroleum owning to poor and non-functional refineries. Importation of refined petroleum has been blamed in part for inflationary tendencies on the naira weakening the country’s currency. It also accounts for a substantial part of what the country imports. Although it was recently announced that the Port-Harcourt refinery owned by the country had started operations, controversies continue to surround its true functionality and ability to ease any substantially importation of petroleum in the country. There have been controversies also on the patronage of the Dangote Refinery in Lagos with accusations and counter accusations on pricing of petroleum supplied by the refinery.
NIGERIA LEADS WORLDWIDE IN CRYPTO OWNERSHIP
NIGERIA LEADS WORLDWIDE IN CRYPTO OWNERSHIP Nigeria leads the world in crypto ownership, according to ConsenSys’ second annual Global Survey. The report indicated that emerging markets like Nigeria and South Africa are driving the global adoption of cryptocurrencies. The percentage of ownership is highest in the Philippines (54%), South Africa (68%), and Nigeria (73%). These countries are at the forefront of notable interest in cryptocurrency-related awareness, ownership, and engagement. According to the survey, 51% of respondents say they understand crypto assets and 93% of respondents worldwide are aware of them. Additionally, these countries have shown a strong interest in Web3 activities, such as staking, utilizing decentralized finance (DeFi), and holding NFTs. Eighty per cent of Nigerian respondents were aware of decentralization, and 77% correctly defined blockchain. In addition, 74% of respondents from South Africa said they were familiar with the concept, compared to 61% of those from the Philippines. The survey also reveals enduring obstacles to entry, despite the increasing interest in cryptocurrency in these regions. Concerns about scams, market volatility, and a lack of understanding of its purpose are common worldwide. Respondents from emerging markets have shown a willingness to accept virtual currencies despite these difficulties and barriers. Seventy-five per cent of those surveyed expressed concern about artificial intelligence’s (AI) potential to spread fraud and create fake news, highlighting that blockchain may be crucial in resolving these issues. Blockchain could offer the accountability and transparency required to counteract AI-driven disinformation, according to roughly 54% of participants worldwide. Speaking about the survey’s findings on the growing significance of data privacy, Joseph Lubin, co-founder of Ethereum and CEO of ConsenSys, stated: “It is impossible to overestimate the crucial role that blockchain technology and decentralization play in improving privacy, trust, and transparency in the way our data is handled. “The adoption of Web3, blockchain, and cryptocurrency has accelerated recently, with 2024 being a key year.” He clarified that this growth is partly due to the recent U.S. presidential election, which might result in more transparent regulations for the sector. Nigeria: A Unique Crypto Market Nigerians have been drawn to the digital world in hopes of making a living as the real economy struggles with high youth unemployment and astronomical food inflation. Chainalysis, a New York-based company that tracks blockchain use, estimated that 33% of Nigerians currently invest in cryptocurrencies, placing the country second in global adoption, after India.Nigerians living abroad use crypto assets to send money to their families back home, avoiding the hassles and exorbitant fees associated with traditional remittance methods.However, Nigerian policymakers have been concerned about the appetite for cryptocurrencies, which are transnational by nature. They claim that instead of resolving Nigerians’ problems, the country’s move toward cryptocurrencies has weakened their ability to govern and further harmed the struggling naira. These obstacles haven’t deterred President Tinubu’s administration from using a carrot-and-stick approach. While the Nigerian SEC has theoretically regulated a few local cryptocurrency exchanges, at least three well-known cryptocurrency companies have left the Nigerian market this year. Bitcoin Bullish RunBitcoin surged to a new all-time high, reaching as high as $106K on Monday morning as investors anticipated a rate cut by the Federal Reserve later this week.Bitcoin is now up 50% since the U.S. elections and almost 8% for the month since Trump’s victory, with a year-to-date gain of 145%.Digital assets continue to benefit from the prospect of a more favorable regulatory environment and the potential creation of a national strategic bitcoin reserve under the incoming Donald Trump administration.
NIGERIA’S INFLATION RATE SPIKES TO 34.60 PERCENT IN NOVEMBER AMID HARDSHIP
NIGERIA’S INFLATION RATE SPIKES TO 34.60 PERCENT IN NOVEMBER AMID HARDSHIP Nigeria’s inflation rate for the month of November 2024 rose to 34.60 percent from 33.88 percent in October, indicating worsening hardship for Nigerians. This is according to the National Bureau of Statistics’ latest Consumer Price Index and Inflation for November. The report showed that the country’s headline or all-items inflation increased by 0.72 percent on a month-on-month basis. Also, Nigeria’s inflation increased by 6.40 percent compared to 28.20 percent recorded in November 2023. The rise in prices of food items pushed food inflation to 39.93 percent in November from 39.19 percent in October. The report also showed that urban and rural inflation stood at 37.10 percent and 32.27 percent, respectively. The increase in Nigeria’s inflation comes amid the Central Bank of Nigeria’s monetary policy interventions. The apex bank, led by Olayemi Cardoso, consistently had a hike in interest rates with rising inflation as justification. The latest hike was in November when the CBN 297th Monetary Policy Committee decided to raise the country’s interest rate to 27.50 percent from 27.25 percent. Despite CBN’s monetary interventions, the prices of goods and services have remained elevated, impacting the cost of living for the majority of Nigerians. Meanwhile, in July and August 2024, Nigeria witnessed declining inflation rates.
NIGERIA REPAIRS $1.22B TO IMF IN NINE MONTHS
NIGERIA REPAYS $1.22B TO IMF IN NINE MONTHS Nigeria has serviced its debt to the International Monetary Fund with not less than $1.22 billion over nine months, data from the Debt Management Office’s external debt service reports has shown. The payments were made as part of principal repayments for three consecutive quarters, from Q4 2023 to Q2 2024. The breakdown of the payments shows that $401.73m was paid in Q4 2023, followed by $409.35m in Q1 2024, and $404.24m in Q2 2024, amounting to a total of $1.22bn. As a result of these repayments, Nigeria’s debt to the IMF has decreased significantly, dropping from $3.26bn as of June 2023 to $1.16bn by June 2024. This reflects a substantial reduction of 64.42 per cent within one year. It was earlier reported that the current administration of President Bola Tinubu is expected to pay off a $3.4bn owed to the International Monetary Fund during his tenure. In April 2020, the IMF disbursed a $3.4bn emergency financial assistance to Nigeria. The loan was approved under the Rapid Financing Instrument by the Executive Board of the IMF on April 28 to address challenges arising from the economic impact of COVID-19 in the country. The loaned amount was disbursed on April 30, 2020. A statement by the IMF on the loan read, “The IMF approved $3.4bn in emergency financial assistance under the Rapid Financing Instrument to support the authorities’ efforts in addressing the severe economic impact of the COVID-19 shock and the sharp fall in oil prices.” It was also reported earlier that Nigeria was expected to pay SDR373.81m ($497.17m), which included principal (SDR306.81m/$408.06m) and interest fee (SDR67m/$89.11m) on the loan. Also, Nigeria was expected to pay a total of SDR1.32bn ($1.76bn) in 2024. This comprised a principal fee of SDR1.23bn ($1.64bn) and an interest fee of SDR94.76m ($126.03m). In 2025, Nigeria will be expected to pay a total of SDR650.58m ($865.27). This comprised a principal fee of SDR613.63m ($816.13m) and an interest fee of SDR36.95m ($49.14m). The country would be expected to pay a total of SDR25.56m ($33.99m) each in 2026 and 2027, which would be only an interest fee. This is the least amount during the repayment period.In total, the administration of Tinubu would be expected to pay $3.19bn to the IMF, which further meant that the previous administration likely paid $320m on loan. In its 2022 financial statements, the CBN referred to the loan.It stated, “In 2020, the bank entered into a rapid financing instrument arrangement with the International Monetary Fund on behalf of the Federal Government of Nigeria. The loan is a 5-year tenor facility, repayable after a moratorium of two years and the interest rate is one per cent per annum.” The CBN added, “Repayment of the IMF loans as well as charges is the responsibility of the bank.”
CBN MOVES TO IMPOSE N150M FINE ON BANKS INVOLVED IN TRADING NEW NAIRA NOTES
CBN MOVES TO IMPOSE N150M FINE ON BANKS INVOLVED IN TRADING NEW NAIRA NOTES The Central Bank of Nigeria has stated that it will iimpose a fine of N150million on any commercial bank involved in trading of new Naira notes to the citizens. This warning was contained in a circular issued on Friday, December 13, 2024, signed by the Acting Director of the Currency Operations Department, Mohammed Olayemi. The apex bank expressed its concerns about the increasing prevalence of mint naira notes being traded by hawkers. The CBN said it sees this situation as impeding efficient and effective cash distribution to customers and the general public. Under the directive, any branch of a financial institution found culpable will face a penalty of N150million for the first violation. Subsequent infractions, the CBN warned, would attract stricter sanctions under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020. To ensure compliance, the apex bank stated that it would increase periodic spot checks in banking halls and ATMs while deploying undercover shoppers to expose illicit cash hawking spots across the country. The circular read, “The CBN has noted with dismay the prevalence of illicit flow of mint banknotes to currency hawkers and other unscrupulous economic agents that commodify Naira banknotes, thus impeding efficient and effective cash distribution to banks’ customers and the general public. “CBN will continue to intensify the periodic spot checks to the banking halls/ATMs to review cash payouts to banks’ customers, as well as mystery shopping to all identified cash hawking spots across the country. “In this regard, any erring deposit money banks or financial institutions that are culpable of facilitating, aiding, or abetting, by direct actions or inactions, the illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents that commodify Naira banknotes shall be penalised at first instance N150,000,000.00 (One hundred and fifty million Naira) only, per erring branch, and at later instances, apply the full weight of relevant provisions of BOFIA 2020.” The CBN further urged DMBs to strengthen controls, processes, and procedures around their Cash Management Centres, branches, and teller operations to prevent their systems from being exploited for illegal transactions.
NNPCL REDUCES PETROL PRICE BY N20: FROM N1,060 TO N1,040 PER LITRE
NNPCL REDUCES PETROL PRICE BY N20: FROM N1,060 TO N1,040 PER LITRE The Nigerian National Petroleum Company Limited, NNPCL, has reduced the price of Premium Motor Spirit (petrol) across its retail outlets in the Federal Capital Territory, Abuja.. DAILY POST correspondents who visited NNPCL retail outlets observed that the petrol pump price was reduced from N1,060 to N1,040 per litre. This represents a reduction of N20. “The price was reduced to N1,040 per litre from N1,060 on Saturday morning,” a filling station attendant at the NNPCL retail outlet along Kubwa expressway told DAILY POST. A motorist, Ezekiel Njoku, confirmed the development to DAILY POST.“The reduction of N20 is significant. We need further fuel price reductions in the coming days,” he said. With the price cut, Nigerians will now buy petrol at N1,040 per litre at NNPCL filling stations, while prices remain within N1,115 per litre at other filling stations, depending on the location. This development comes barely three weeks after the state-owned Port Harcourt refinery began producing petroleum products in November 2024. The former Managing Director of NNPCL Retail, Prof. Billy Okoye, had earlier speculated that a fuel price reduction was imminent with the commencement of production at the Port Harcourt refinery. Oil marketers, the Independent Petroleum Marketers Association of Nigeria, IPMAN, and the Petroleum Products Retail Outlets Owners Association, PETROAN, had also hinted that the deregulation of the sector—coupled with the operations of Dangote and Port Harcourt refineries—would lead to a drop in petrol prices.