Nigeria’s Currency Circulation Jumps To N66.4trn -CBN
The Central Bank of Nigeria CBN) has reported that Nigeria’s total money supply (M2) increased to N66.4 trillion in September 2023. The data from the apex bank on money supply in the economy in the month other review comprising demand deposits, quasi-money, and currency outside banks, reflected increases in the components. Specifically, quasi-money, which pertains to financial tools that can be easily converted to cash, rose from N40.8 trillion in the preceding month to N41 trillion; demand deposits, primarily made up of funds in banks accessible without prior notice, moved from N21.7 trillion to N23 trillion while currency outside banks’ vaults marginally increased from N2.29 trillion to N2.3 trillion. Over the past few years, Nigeria’s money supply has been increasing based on the micro and macroeconomic whirlwinds of the economy, particularly the surging inflation rate, FX pressure on the Naira, and declining interest rates. The money supply, also known as M2, represents the total amount of money available in the economy at a particular moment, including physical currency such as coins and banknotes as well as deposits maintained by individuals, enterprises, and institutions in banks and other financial entities. However, the nation’s Net Foreign Assets dipped in September from N7.1 trillion to just N591 billion while Net Domestic Assets rose to N66.5 trillion from N58.3 trillion. A further analysis of the M2 trend during the month under review showed that the net domestic credit rose from N87.2 trillion to N92.7 trillion, thereby raising the net domestic credit to GDP by around 42.7 per cent. The breakdown of the net domestic credit indicated that credit to the government marginally increased to N34.1 trillion from N32.5 trillion while credit to the organized private sector surged from N54.7 trillion in the preceding month to N58.6 trillion, representing 63% of net domestic credit.
Bulls Return As Equity Market Gains N63bn
The domestic equity market witnessed a positive upswing on Wednesday, resulting in a gain of N63 billion in market capitalization. This represents a 0.17% increase, with the total market capitalization rising to N36.864 trillion from N36.801 trillion recorded the previous day. The NGX All Share Index also appreciated by 115.87 basis points, closing at 67,100.49 points compared to the previous day’s 66,984.62 points. Top gainers for the day included Thomas Way, which led the gainers’ table with a 9.81% increase to N2.35 per share. Daar Communication followed with a gain of 9.52% to close at N0.23 per share. Cornerstones Insurance added 6.45% to close at N1.65 per share, Transnational Corporation of Nigeria increased by 5.41% to close at N6.43 per share, and Union Bank of Nigeria added 5.30% to close at N6.95 per share. On the flip side, Omatek was the top loser, dropping by 8.33% to close at N0.44 per unit. Oando Plc trailed with a drop of 8.08% to close at N9.10 per share. AfriPrudential fell by 7.80% to close at N6.50 per unit, Caverton Business Solutions dipped by 6.92% to close at N1.48 per share, and Chi Plc went down by 6.25% to close at N1.05 per share. Total trading volume increased as investors exchanged 410.320 million shares valued at N4.456 billion in 5637 deals, compared to the previous day’s 257.423 million shares worth N7.799 billion in 6498 deals. Neimeth International Pharmaceutical led market activities with 163.200 million shares valued at N259.494 million, followed by AccessCorp with 38.974 million shares worth N611.819 million. Zenith Bank traded 32.273 million shares valued at N101.858 million, Fidelity Bank exchanged 23.523 million shares worth N194.178 million, and United Bank for Africa traded 19.822 million shares valued at N341.185 million.
Customs Exceeds Monthly Target, Generates N343bn In August
The Acting Comptroller-General (CG), Nigeria Customs Service (NCS), Mr Adewale Adeniyi, has disclosed that the service exceeded the revenue target for the months of July and August. Adeniyi, who spoke while presenting the scorecard for his 100 days in office on Thursday in Abuja, said that the NCS generated N307 billion in July and N343 billion in August “One of our early achievements has been a remarkable boost in monthly revenue collection. “We have witnessed a substantial increase, with an average monthly collection of 202 billion in the first half of the year that concluded in June, surging to an impressive 343 billion in August. “This outstanding growth amounts to a remarkable 70.13 per cent increase in revenue collection. “I am delighted to announce that we have consistently exceeded the monthly target collection, marking a remarkable departure from previous performances,” he said. He said that the ongoing revenue recovery review activities hadl contributed an additional eight billion Naira during the period. “This underlines our commitment to revenue generation. Subject to unforeseen circumstances, our aim is to sustain and even expand this momentum until the end of the year. “This commitment is driven by our resolve to minimise the deviation from the target, especially in light of the substantial shortfalls recorded during the first half of the year,” Adeniyi said. He said that the NCS had recorded appreciable results in its ongoing battle against smuggling “We have successfully intercepted various contraband items, including arms, ammunition, illicit drugs, substandard pharmaceuticals and other prohibited goods that pose grave risks to our citizens. “These seizures accompanied by the apprehension of 62 suspects undergoing legal procedures, underscore our commitment to tackling smuggling and safeguarding our communities. “Notably, a significant surge in impactful seizures, especially involving arms, ammunition, and drugs, has occurred in the past two months, reinforcing our resolve to combat these illegal activities,” he said. He said that NCS had forged stronger alliances and fostered an environment of trust and cooperation among stakeholders in the public and private sectors., as well as international partners. The acting CG said that NCS was at the verge of introducing multiple cutting-edge solutions to support the enforcement strategies, starting with the signing of an Memorandum of Understanding (MoU) that seeks to put vehicle smugglers out of business for good. “As we reflect on the achievements of the first 100 days in office and the journey we have embarked upon, it is essential to look ahead with a clear vision for the future. “The next phase builds upon the foundation we have laid, and it is characterised by unwavering dedication to our policy thrust of consolidation, collaboration, and innovative solutions. “Looking forward, we envision a service that is not only the most efficient and service-driven government organ but also a pivotal driver of national economic growth and border security. “There are also challenges we face but we are working hard to overcome it and get a better result,” he said. According to him, the NCS plays a pivotal role in facilitating international trade and economic growth and equally serves as a bridge connecting the nation to the global marketplace. He expressed commitment to aligning with President Bola Tinubu’s agenda on economic growth and development.
I left N129bn In FIRS Coffers – Nami
The immediate past Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami, has insisted that he did not approve the sum of N11 billion after taking his pre-retirement leave as has been alleged by the Cable Newspaper. In a statement he personally signed, Nami said that the entire story was sensationally written with mischief that took the ordinary events of his work out of context with the intent to tarnish his hard-earned reputation. The immediate past FIRS boss stressed that after his exit as FIRS Executive Chairman, he did not make any approvals as has been claimed by the newspaper. Nami insisted that he met only N1.4 billion in the purse of the FIRS when he assumed office and left the sum of N129 billion in the purse of the Service when he handed over to the new Chairman, Zacch Adedeji recently. “Fundamentally, it is important to note that no payment was made by the Service after the announcement of my pre-retirement leave as claimed by this story. An approval for payment in the Service is one step of a journey to payment. It is the custom that when a new Executive Chairman resumes office, he would review, validate and make final authorisation before any payments can be made. “It is important to note for the record that all decisions reached and extant liabilities/ commitments of the Service during my stay in office are contained in the handover notes I made available to my successor, Mr. Zacch Adedeji. He is fully briefed on everything. For clarity, the items listed in the Cable Newspaper Report were part of the N16 billion outstanding commitments contained in our handover note. “The N5 billion paid to the Joint Tax Board was paid to fund the activities of the Presidential Committee on Tax and Fiscal Policy Reforms two months before I left office. It was paid after we received a letter to that effect from the office of Mr. President signed by Zacch Adedeji himself. “The report maliciously attempts to portray a picture that I hurriedly left the country on September 16th after these so-called “suspicious approvals” were made. Again, nothing can be further from the truth. If I traveled out of the country on the 16th of September, how then did I attend the handover ceremony with Mr. Zacch on the afternoon of Monday 18th September 2023? That handover ceremony was covered by the media, and can be cross-checked. “It is disappointing to see the Cable, a revered online newspaper attempt to sensationalise events that took place in the ordinary course of work in office, making them seem as if they were done in bad faith. “I want to categorically state that every decision I made within the time of my stay in office was within the ambit of the law and within the lawful powers I exercised then as Executive Chairman,” he explained.
N5bn Palliatives: FG has released N2bn to States, FCT -Wale Edun
The minister of finance and coordinating minister of the economy, Wale Edun has said that the sum of N2 billion has been released to the 36 States and the federal capital territory. The minister, who said this during a press briefing on Friday in Abuja, said the money is a combination of loans and grant. Edun said the federal government decided to release the money in tranches to avert further spikes in the inflation rate. He said, “On the issue of the N5 billion, it is a combination of grants from the federal government and borrowing by the states. And of course, although the sum of N5bn is earmarked, you will agree with me that if you release such funds across all states at once, it will be self-defeating and it will lead to an inflationary spiral, lead to cost of goods going up, and exchange rate liquidity will go up,” he said. The minister further said that the N500 billion palliatives is part of the federal government’s support to poor and vulnerable Nigerians. He said “the president is going to deliver a better life to Nigerians by encouraging investment that increases productivity that grows the economy and thereby creating jobs and reducing poverty”. Acknowledging the hardship currently being experienced by Nigerians over the removal of petrol subsidy, the minister said that in a little while, the whole system will begin to experience the benefits of the subsidy. He said: “There are funds in domiciliary accounts and If you give people the incentives they will utilise those funds in Nigerians for Nigerians. They have huge holdings in foreign currency in banks abroad, in financial institutions abroad. We need to provide the environment that brings those funds home, to choose to invest in the Nigerian economy rather than foreign economy.” The Chairman presidential Committee on fiscal policy and tax reforms, Taiwo Oyedele said the federal government would rake into its coffers N20 trillion if the right taxes are paid. He added that the government was in the process of reviewing the incentives that has been granted over the years. According to him, the sum of N6 billion is lost by the government from incentives. He insisted that going forward, incentives would be targeted at those that need it the most saying that the country could “make more money from tax than we can do from crude oil.”
Chinese Yuan Gains Strength, Reaches 7.1856 against US dollar
The Chinese currency, renminbi, also known as the yuan, exhibited strength against the US dollar on Monday as its central parity rate was set at 7.1856, marking an increase of 27 pips. This adjustment was reported by the China Foreign Exchange Trade System. In China’s spot foreign exchange market, the yuan is granted a fluctuation range of two percent in either direction from the central parity rate during each trading day. The determination of the central parity rate for the yuan against the dollar relies on a weighted average of prices provided by market makers before the commencement of the interbank market’s operations on each business day.
Naira records 0.22% appreciation at Investors, Exporters Window
The Nigerian naira exhibited an upward trend against the US dollar on Thursday, trading at an exchange rate of N771.69 within the Investors and Exporters window. This marked a noteworthy appreciation of 0.22% when compared to the N773.42 rate observed on the preceding Wednesday. At the close of trading on Thursday, the open indicative rate concluded at N777.82 to the dollar, suggesting the local currency’s strengthening trajectory. The day’s trading unveiled a peak spot exchange rate of N799.90 to the dollar, ultimately stabilizing at the closing rate of N771.69. Conversely, the naira saw a lower point during the trading session, reaching an exchange rate as minimal as N700 to the dollar. The investors and exporters window experienced a trading volume totaling $121.60 million on Thursday, indicative of the market’s activity and significance in the foreign exchange landscape. This robust level of trading underscores the ongoing dynamics and engagement in the currency market. The appreciation of the naira against the dollar reflects the evolving economic landscape, where market forces interact to influence currency valuations. The day’s fluctuations, ranging from the highest recorded rate to the lowest, mirror the currency’s volatility in response to various market factors.