Nigeria’s Currency Circulation Rises By N230bn In October

Despite reported scarcity of naira in the banking system, data made available by the Central Bank of Nigeria (CBN) showed that currency in circulation rose eight per cent to a new high of N2.99 trillion by the end of October, 2023. The value represents a N230 billion increase from the N2.76 trillion recorded in September, 2023, and an increase of N1.6 trillion from N1.39 trillion recorded at the beginning of 2023. The apex bank defines the currency in circulation as currency outside the vaults of the Central Bank of Nigeria, meaning, all legal currency notes in the hands of the general public and in the vaults of the Deposit Money Banks (DMBs). With this new high of almost N3 trillion, currency in circulation appears to be on the rise to the level it was in October 2022 (N3.29 trillion) before the naira redesign policy of the CBN. Analysts say, it is surprising the currency in circulation is increasing, while the deposit money banks say there is scarcity of naira, with many of the banks restricting withdrawals by depositors to a maximum of N 20,000 as was the case with some banks in Lagos last week. “Certainly, if the apex bank said money in circulation it has to be naira, not the dollar and pounds sterling that is clearly a scarce commodity. How come, here in Lagos, many of the banks could not give more than N20,000 and their ATM machines perpetually dry last week”, David Agumo argued. It is widely believed that it was as a result of the scarcity of the naira that made the CBN announce the continued usage of the old naira notes as legal tenders indefinitely. While some economic analysts, believe the development may be attributed to the apex bank’s decision to extend the deadline for the old notes and the assurance of sufficient currency stock may indicate efforts to stabilise the situation and address any cash scarcity concerns, others say that decision made only recently can only affect currency in circulation for November and not October.

Former CBN Dep Gov, Moghalu Gets APSS Appointment 

Kingsley Moghalu, a former Deputy Governor of the Central Bank of Nigeria, (CBN) has been appointed to head the board of directors of the Africa Private Sector Summit, APSS. His appointment was announced by the founder and outgoing Chairman of APSS, Judson Wendell Addy. Addy expressed confidence in Moghalu’s leadership experience, credibility, and networks. This private sector-led non-profit organization, headquartered in Accra, Ghana, is dedicated to promoting trade and investment across the African continent. In response to his appointment, Professor Moghalu expressed his honour and commitment to working with African companies, governments, international organizations, and other stakeholders to advance the vital role of the private sector in the structural transformation of African economies. 

Nigeria’s Equity Market Declines By N6bn

Transactions on the floor of Nigerian Exchange on Wednesday closed on negative note, shedding N6 billion. Market capitalisation of listed equities declined by 0.02 per cent to N36.923 trillion from N36.929 trillion reported on Tuesday. The NGX All Share Index also depreciated by 11.61 basis points to 67206.16 points from 67217.77 points reported the previous day. A review of the investment showed that Multiverse led gainers table, growing by 9.74 per cent to close at N2.93 per share, Chams Plc followed with a gain of 9.71 per cent to close at N1.92 per unit, Caverton Business Solutions added 9.35 per cent to close at N1.52 per unit, FTNCocoa Plc up by 8.97 per cent to close at N1.70 per unit while Geregu powers increased by 7.71 per cent to close at N370.00. On the contrary, ETranzact and SUNU Assurance recorded the highest loss, shedding 10 per cent each to close at N7.56 and N0.99 per share. Deep Capital trailed at 7.41 per cent to close at N0.25 per share, Eterna Plc dropped by 7.41 per cent to close at N13.75 per unit, United Bank for Africa down by 5.79 per cent to close at N18.75 per share. Volume of trades increased by 9.756 million, representing 3.05 per cent as investors traded 329.660 million shares valued at N4.410 billion in 5998 deals against 319.904 million shares costing N6.330 billion in 6272 deals. Transactions in the shares of Fidelity Bank led market activities with 50.319 million shares valued at N411.728 million, AccesCorp plc followed with 43.186 million shares worth N30.101 million, Chams Plc traded 26.650 million shares cost N50.127 million, United Bank for Africa exchanged 25.848 million shares cost N502.077 million while GTCO Plc exchanged 20.630 million shares cost N733.793 million.

Just In: Nigeria’s Inflation Soars To 25.80% In August 2023 –NBS

Nigeria’s headline inflation rate jumped to 25.80 per cent in August 2023, relative to the July 2023 headline inflation rate which was 24.08 per cent, the National Bureau of Statistics (NBS) has said. According to the NBS in its Consumer Price Index (CPI) report for August 2023, there is a 1.72 percentage point increase when compared to the July 2023 headline inflation rate. On a year-on-year basis, the headline inflation rate was 5.27% points higher compared to the rate recorded in August 2022, which was 20.52%. The NBS noted that food inflation for August rose to 29.34 per cent in August 2023, representing a 2.35 percentage point increase from 26.98 per cent recorded in the previous month. On a year-on-year basis, which was 6.22% points higher compared to the rate recorded in August 2022 (23.12%). According to the Statistics bureau, the increase was driven by increase in prices of Oil and fat, Bread and cereals, Fish, Fruit, Meat, Vegetables and Potatoes, Yam and other Tubers, Vegetable, Milk, Cheese and Eggs. “On a month-on-month basis, the Food inflation rate in August 2023 was 3.87%, this was 0.41% points higher compared to the rate recorded in July 2023 (3.45%). “The rise in Food inflation on a month-on-month basis was caused by increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Fish, Oil and Fat, Coffee, Tea, and Cocoa. “The average annual rate of food inflation for the twelve months ending August 2023 over the previous twelve-month average was 25.01%, which was 5.99% points increase from the average annual rate of change recorded in August 2022 (19.02%),” the bureau said. The NBS further said that in August 2023, food inflation on a year-on-year basis was highest in Kogi (38.84%), Lagos (36.04%), and Kwara (35.33%), while Sokoto (20.09%), Nasarawa (24.35%) and Jigawa (24.53%) recorded the slowest rise in food inflation on a year-on-year basis. “On a month-on-month basis, however, August 2023 food inflation was highest in Rivers (7.12%), Kwara (5.89%), and Kogi (5.80%), while Sokoto (0.50%), Abuja (1.30%) and Niger (1.40%) recorded the slowest rise in Food inflation on a month-on-month basis,” the report revealed.

Despite NLC strike, equity market gains N31bn

Transactions on the floor of Nigerian Exchange (NGX) on Tuesday sustained an upward trend appreciating by N31 billion as gain recorded in the shares of BUAfoods, Dangote Sugar, Oando and other boosted market activities. Market capitalisation of listed equities appreciated by 0.08 per cent to N37.400 trillion from N37.369 trillion reported the previous day. The NGX All Share Index also appreciated by 55.54 basis points to 68334.68 points from 68279.14 points traded on Monday. The NGX trading for the day showed that four companies recorded 10 per cent gain at the close of trading for the day Multiverse, Omatek, Betaglass Sunu Assurance led gainers table in percentage terms, increasing by 10 per cent each to close at N2.97 per share N0.55, N42.90 and N0.88 per unit respectively, Oando Plc followed with a gain 9.84 per cent to close at N6.70 per unit. On the contrary, NSLTech topped losers’ chart, dropping by 10 per cent to close at N0.27 per share, Chellaram Plc trailed with a loss of 9.80 per cent to close at N3.22 per share, Ikaje Hotel fell by 9.68 per cent to N2.80 per unit, JohnHolt fell by 9.03 per cent to close at N1.31 per shares Neimeth international Pharmaceutical down by 8.93 per cent to close at N1.53 per share. The volume of transaction declined by 287.828 million, representing 34.04 per cent as investors traded 557.852 million shares valued at N10.210 billion in 9818 deals against 845.680 million shares worth N13.037 billion in 11934 deals. Trading activities in the shares of United Bank for Africa led market activities with 63.322 million shares valued at N951.178 million, Oando Plc followed with account of 61.258 million shares cost N409.752 million, Fidelity Bank traded 58.141 million shares cost N486.483 million, AccessCorp traded 42.110 million shares worth N728.417 million while Transcorps exchanged 40.499 million shares valued at N272.158 million.

Nigeria’s equity market dips by N28bn

Transactions on the floor of the Nigerian Exchange took a negative trend on Wednesday, shedding N28 billion due to a decline in the share price of Transnational Corporation of Nigeria (Transcorps), Zenith Bank and FTNCocoa. The market capitalisation of listed equities went down by 0.08 per cent to N36.362 trillion from N36.390 trillion reported the previous day. The NGX All Share Index also depreciated by 50.81 basis points to 66439.53 points from 66490.34 points reported the previous day. An analysis of the investment showed that Chi Plc and Cap Hotel led gainers table in percentage terms, gaining 10 per cent each to close at N1.10 and N2.75 per share respectively. UPL followed with a gain of 9.77 per cent to N2.36 per unit, Champion Breweries gained 9.72 per cent to close at N3.50 per share, Thomas Way added 9.60 per cent to close at N2.17 per share. On the contrary, Transnational Corporation of Nigeria recorded the highest loss with 9.99 per cent to close at N6.31 per unit, Ikeja Hotel trailed with a drop of 9.88 per cent to close at N3.65 per unit, FTNCocoa fell by 8.11 per cent to close at N2.04 per unit, RTBriscoe down by 6.67 per cent to close at N0.42 per share. Volume of trades during the day decreased by 200.237 million, representing 45.82 per cent as investors traded 637.193 million shares valued at N7.790 billion in 10033 deals against 436.956 million shares worth N7.013 billion exchanged hands the previous day in 7932 deals. Transnational Corporation of Nigeria led market activities with 292.409 million shares worth N2.146 billion, AccessCorp followed with account of 26.652 million shares worth N435.491 million, Dangote Sugar Refinery exchanged 24.452 million shares worth N1.454 billion, Jaiz Bank traded 18.662 million shares cost N27.723 million while Fidelity Bank exchanged 17.386 million shares worth N122.281 million.

Nigeria’s unemployment rate drops 4.1% -NBS

Nigeria’s unemployment rate dropped to 4.1 percent in the first quarter of 2023 from 5.3 percent in the fourth of 2022. Mr Adeniran Adeyemi, the Statistician-General of the Federation and Chief Executive Officer of the National Bureau of Statistics (NBS), said this during the inauguration of the New Nigeria Labour Force Survey (NLFS) in Abuja. Adeniran said that the drop in NLFS from 33.3 percent in the Fourth quarter 2020 to its present rate was based on change in methodology adopted and not government performance. The new NLFS unveils a set of labour force indicators designed to provide unparalleled insights into the dynamics of the workforce in Nigeria. The NLFS was conducted by the NBS in collaboration with the World Bank (WB) and the International Labour Organisation (ILO) in response to the labour market dynamics Adeniran said “let me at this point clearly state that this methodology review has nothing to do with whitewashing the image of any government or political party. “This process is routine for any responsible statistical office, and we have no reason to continue to ignore the adoption of new methods, when the evidence clearly indicates the need for it. “As a national statistical office, our responsibility is to provide government and all users with accurate data for evidence-based decision making, adhering to the highest possible standards, and our commitment in this regard is unwavering.” According to Adeniran, the new method which indicates that not less than 73 per cent of Nigerians are engaged in one form of work, recognises all forms of engagements from which individuals earn income. He said using the new ILO definition, the survey showed that the unemployment rate for the fourth quarter of 2022 stood at 5.3 per cent and 4.1 per cent for the first quarter of 2023. “This figure aligns perfectly with neighbouring countries around Nigeria. Ghana (3.9per cent), Niger (0.5 per cent), Chad (1.4per cent), Cameroon (4.0per cent), Togo (4.1per cent), Benin Republic (1.7per cent) amongst others. “In responding to the shifting global landscape and the ever-changing data ecosystem, it is imperative for us to continuously adapt the way in which we collect and analyse data. “This is to ensure that we are producing data that reflects reality and the experiences of Nigerians. “These changes also include a revision to the design and methodology applied in the conduct of the actual survey. “Which is the survey that produces commonly known headline Unemployment and Underemployment rates, as well as other labour market indicators that guide policymakers, researchers, and other users,” he said. According to him, the results indicate a scarcity of Wage-employment, as the share of those employed in Wage-employment during the reference quarters was 13.4 per cent in Q4 2022 and 11.8 per cent in Q1 2023. Adeniran said that the working age population which was defined previously as persons aged 15-64, is now defined as persons aged 15 and above. He said this was a very important change particularly in the Nigerian context as it recognises the labour contributions of persons above the age of 64 which was not done previously. The NBS boss said the unemployed appeared to be the most controversial amongst the changes announced under the review. According to him, the new standard defines the unemployed as persons within the Labour force, who within the reference period did not work for pay or profit for a minimum of 1 hour. “In the real sense, nobody works 1 hour a week and then sits down and does nothing else when there are opportunities for more hours of work. “The statistics show that only 7.1 per cent of those working, work between 1 – 19 hours per week. So, 1 hour is just a benchmark and nothing more than that,” he said. The survey revealed that about three quarters of Nigerians in the working age population, 73.6 per cent in Q4 2022 and 76.7 per cent in Q1 2023 were engaged in some form of work for pay or profit in the quarters under review. Earlier, the World Bank’s Country Director, Shubham Chaudhuri pledged the continued support of the bank to ensure a robust, regular national LFS data for the country. Chaudhuri said a reliable data provided the government with knowledge about the nation’s welfare and ensured the right intervention and programs needed to address it’s challenges. The Minister of Budget and Economic Planning, Abubakar Bagudu, said data was key to national planning and development. According to Bagudu, President Bola Tinubu believes in reliable data for planning and will support anything that will lead to production of appropriate data. “To create jobs for youths, we need this kind of data, a lot needs to be done to address the high rate of unemployment in the country. The President is desirous of reducing unemployment. “Nigeria is one of the countries with absorptive capacity, so what we need is to provide better environment and more incentives,” he said. While commending efforts of NBS and its partners in revising the methodology, Bagudu said the ministry would from 2024 use of the revised data more practically. Meanwhile, the Acting CBN Governor, Mohammed Tumala said labour statistics was one of the most important inputs to economic policy and business decisions. Tumula said labour was the most important of the factors of production and determined both the quantity and quality of utility of other factors. While commending efforts of the NBS, he stressed the need for synergy with communication experts to ensure proper linkage and dissemination of data to the public. Similarly, Prof. Mike Obadan, Non-Executive Director and member MPC, CBN also reiterated the need for NBS to ensure robust strategy for communicating its survey findings to the public in simple language. Abuja-Kaduna Road project to be completed by Q1 2024, says Umahi The Minister of Works, Mr David Umahi,has again given the assurance that the reconstruction work on the Abuja-Kaduna-Kano highway will be completed by the first quarter of 2024. Umahi made this known while inspecting the project on Thursday to assess the progress made so far by