Business
Updated: Nigeria, others beg IMF, W’Bank for debt relief
Updated: Nigeria, others beg IMF, W’Bank for debt relief
Nigeria and other developing nations have expressed worry over their rising public debt and called for some relief from global creditors, International Monetary Fund and the World.
The G-24, an assembly of developing economies including Nigeria, disclosed this in a series of appeals made at the ongoing meeting of the IMF and the World Bank in Marrakech, Morocco.
These nations said they were grappling with unsustainable debts, making it challenging for them to meet their repayment obligations.
Nigeria’s total external debt stock as of June 30, 2023, is approximately $43.2 billion.
Figures from the Debt Management Office show that under the World Bank Group, Nigeria owes the International Development Association about $14 billion and the Int’l Bank for Reconstruction and Development about $485 million.
It also owes the IMF about $3.3 billion.
The members of the G-24 acknowledging the G-20 Common Framework, which is a debt relief initiative by the Group of Twenty (G-20) countries, noted that some of the poorest and most vulnerable countries were not benefiting from this debt relief programme.
They therefore called for a durable debt resolution specifically designed to address the debt problems of those excluded countries at the same time demanding for a more comprehensive and sustainable solution to alleviate the burden of debt for these countries and enable their economic growth and development.
Nigeria’s Minister of Finance and Coordinating Minister for the Economy Mr Wale Edun at the Africa Group 1 Constituency Meeting on the sidelines of the IMF/World Bank meeting stated that “our member statement urges an efficient debt resolution framework to support post-pandemic recovery and we indeed welcome Zambia’s debt restructuring agreement and call for swift resolution mechanisms for Ethiopia and Malawi.”
The G-24 members also called for more concessional lending, especially for investments in global public goods and sustainable development such as affordable water and energy.
Wake Edun also sought the “elimination of export restrictions on fertilizer and grains, avoiding protectionist policies and leveraging the normalization of supply chains and shipping costs to reinvigorate global trade”.
Edun and other finance ministers expressed their concern with the progress on the IMF general quota review.
IMF general quota refers to the monetary contribution made by each member country to the International Monetary Fund.
This quota determines the country’s relative financial and voting power in the institution. The quota is assessed based on each member country’s share of the world economy, including its GDP, openness to trade, and international reserves.
Business
BREAKING: CBN raises interest rate to 26.25%
BREAKING: CBN raises interest rate to 26.25%
The Central of Nigeria Monetary Policy Committee has raised interest rates by 150 basis points to 26.25 per cent from 24.75 per cent in March to tackle rising inflation.
CBN Governor, Olayemi Cardoso disclosed this on Tuesday at the 295th MPC press briefing in Abuja.
The apex boss said the decision to raise the interest rate was to tame the country’s soaring headline inflation which increased to 33.69 per cent in April.
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CBN had continued tightening of monetary instruments to bring down inflation.
The 295th MPC meeting is the third since the appointment of Cardoso in September last year.
In May 2023, Nigeria’s interest rate stood at 18.75 per cent.
BREAKING: CBN raises interest rate to 26.25%
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Corps Marshal, NADDC DG lead discussions at 10th Nigeria Transport Lecture
Corps Marshal, NADDC DG lead discussions at 10th Nigeria Transport Lecture
The Corps Marshal of the Federal Road Safety Corps (FRSC) Mr. Dauda Ali Biu, and the Director General of the National Automotive Design and Development Council, Mr. Joseph Osanipin, will lead other major players to attend the 10th Nigeria Transport Lecture holding in Lagos on Thursday, May 23, 2024.
Already, Biu and Osanipin have confirmed to be part of the event.
Transportation safety will be the focus of discussions as industry players gather at the Radisson Blu Hotel, Ikeja GRA, Lagos.
Organized by Transport Day Media (www.transportday.com.ng), the theme of this year’s edition, which is ‘Transportation Safety in Nigeria: The Way Forward’, is meant to discuss issues about transport safety in Nigeria.
The discourse, which will involve industry participants from both the public and private sectors, will x-ray transport safety cutting across all modes of transportation in Nigeria.
Also expected at the lecture are the Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Shippers’ Council, Nigeria Safety Investigation Bureau (NSIB), among others.
The Editor-in-Chief of Transport Day Media, Mr. Frank Kintum, stated that the topic is relevant in contemporary times because many lives and property had been lost to lack of adherence to safety measures in all modes of transportation.
He said, “Irrespective of the level of infrastructural development in the transportation sector, if safety is not promoted, we are going to continue to record loss of lives and valuable property.
“Hence, the lecture is meant to address pertinent issues concerning the industry as it concerns our local Nigerian setting.
“Aside from the lecture, we are also going to use the opportunity to recognize some players, both public and private sectors, who have significantly contributed to the growth of the sector and contributed to the economy in general.”
Business
Naira gains marginally at N1,490/$ on parallel market
Naira gains marginally at N1,490/$ on parallel market
The naira appreciated further to N1,490 per dollar at the parallel section of the foreign exchange (FX) market on Monday, reflecting a 1.34 percent increase from the N1,510/$ rate recorded on May 17.
Currency traders in Lagos, known as bureau de change (BDC) operators, quoted the buying rate of the dollar at N1,450 and the selling rate at N1,490, yielding a profit margin of N40.
In the official FX market, the naira also appreciated by 1.93 percent, trading at N1,468.99/$ on Monday, compared to N1,497.33/$ on May 17. During intra-day trading, the naira fluctuated, depreciating to as low as N1,550/$ and appreciating to as high as N1,400/$.
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Agora Policy, an Abuja-based think tank, emphasized the need for a temporary dollar liquidity bridge or increased FX inflows to support the Central Bank of Nigeria’s (CBN) orthodox reforms. The think tank suggested that measures such as eurobond issuance, asset sales, and engaging multilateral agencies could help boost dollar inflows into Nigeria.
In the medium term, Agora Policy recommended that Nigeria prioritize restoring organic dollar flows from oil exports by addressing the backlog of encumbrances.
The organization also highlighted the importance of balancing exchange rate stability, which is crucial for controlling near-term inflation, with enhancing non-mineral export competitiveness in Nigeria’s small open economy.
Naira gains marginally at N1,490/$ on parallel market
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