Business
Local fuel refining, $750m loan will stabilize naira – Report
Local fuel refining, $750m loan will stabilize naira – Report
The naira is projected to exchange between N1,423.26/$ and N1,550/$ in the second half of this year, report by United Capital report titled: Balancing Act: Nigeria’s Path to Stability.
The naira yesterday exchanged at N1,570/$ at the parallel market, and appreciated by 6.05 per cent to close at N1,500.32/$ at the Nigerian Autonomous Foreign Exchange Market (NAFEM)- official window.
The report released yesterday, said local petrol supply from the Dangote Refinery and a $750 million disbursement from the World Bank will keep naira stable in the remaining months of the year.
The World Bank recently granted the Federal Government a $750 million loan to offer subsidies to developers and operators of solar mini-grids in areas across the country that lack electricity access.
The loan, approved under the Distributed Access through Renewable Energy Scale-up (DARES) project, aims to increase the supply of electricity to households and micro, small, and medium-sized enterprises (MSMEs) through private sector-led distributed renewable energy initiatives.
The commencement of production of Premium Motor Spirit (PMS) also known as petrol by the Dangote Oil Refinery and Petrochemicals company is also expected to lift the naira.
The development is expected to harness Africa’s abundant crude oil resources to produce refined products locally, even as the company aims to catalyze a virtuous cycle of industrial development, job creation, and economic prosperity
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The report said financial system liquidity is expected to increase by 40.2 per cent in the second half of the year while Bond yields are likely to remain elevated due to the government’s reliance on the domestic debt market. It added that investors are expected to favor short-term rates over longer-term exposure, leading to mixed sentiments in the bonds market.
It said the naira has experienced notable volatility in during the first half of 2024, with much of the weakness attributed to devaluation in January 2024 when the Central Bank of Nigeria (CBN) revised its methodology for setting the official exchange rate.
“The currency weakened by 34.33 per cent in the official market, from N988.46/US$ on January 2, 2024, to N1.505.30/US$ by June 28, 2024, and fell by 21.05 per cent in the parallel market, from N1,200/$ to N1,520/$ over the same period,” it said.
It explained that although this adjustment has seen improvements in the elimination of the premium between the official and parallel markets, and improved market turnover, indicating some reform progress, but the local currency has continued to weaken against the greenback.
“However, the naira continued to weaken, losing 7.3 per cent against the US dollar post-devaluation due to high dollar demand for fund repatriation after the CBN cleared a backlog of foreign exchange requests, coupled with the ongoing dependency on imported petrol,” it said.
The report said the sustainability of these measures’ hinges on improved capital inflows through improved crude oil production and enhanced export revenues replenishing foreign reserves.
“Should these vital inflows fail to materialize, the efficacy of CBN interventions may wane over time, leaving the naira vulnerable to further depreciation in the absence of robust external support,” it said.
In addition to the power subsidy, the Federal Government plans to provide performance-based grants to eligible mini-grid operators based on new customer connections for isolated mini-grids and a percentage of capital expenditures for interconnected mini-grid projects.
The grant will also cover standalone solar (SAS) systems for households, MSMEs, and agribusinesses, supporting the rapid deployment of SAS solutions in rural and underserved areas through supply- and demand-side support.
Local fuel refining, $750m loan will stabilize naira – Report
Business
Naira opens 2025 on weak note against US dollar
Naira opens 2025 on weak note against US dollar
The Nigerian naira fell to N1,541.36/$ on the first trading day of 2025, marking a 0.36% decline from the closing rate of N1,535.82/$ recorded at the end of 2024, according to NFEM data on the Central Bank of Nigeria’s website.
Some authorised dealers quoted the dollar at N1,545/$, a slight improvement from the N1,550/$ quoted earlier in the week. Others quoted the naira at N1,520/$ at the close of trading on Thursday.
In the parallel market, the naira ended the day at N1,655/$, improving from N1,670/$ quoted on Tuesday.
The naira’s performance in 2024 saw a significant depreciation of 40.9% compared to its official rate of N907.11/$ at the close of 2023.
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The decline comes despite various foreign exchange policies introduced by the Central Bank of Nigeria (CBN) to improve market transparency and attract foreign investors.
One of the notable reforms was the December launch of the Electronic Foreign Exchange Matching System, which introduced new guidelines for authorised forex dealers. This initiative brought some stability to the naira towards the end of 2024.
Meanwhile, in the money market, the Nigerian Interbank Offered Rate saw declines across all maturities, indicating liquidity in the banking sector. The Open Repo Rate dropped by 0.61% to 26.69%, while the Overnight Lending Rate fell by 0.55% to 27.25%.
Trading in the secondary market for Federal Government of Nigeria (FGN) bonds remained subdued, resulting in a marginal increase in the average yield to 19.76%. In the sovereign Eurobonds market, buying pressure across various segments of the yield curve led to a 6-basis-point decline in the average yield to 9.62%.
Naira opens 2025 on weak note against US dollar
Auto
Jetour attributes Nigeria’s award to customers loyalty, innovation
Jetour attributes Nigeria’s award to customers loyalty, innovation
Jetour has been declared the fastest growing auto brand in Nigeria.
The award was announced on Wednesday December 11, 2024 in Lagos at an impressive ceremony organised by the Nigeria Auto Journalists Association (NAJA).
Jetour representative in Nigeria, Jetour Mobility Services, has taken to its Facebook page to celebrate its customers for making this to happen, attributing the success to its commitment to innovation in creating remarkable driving experiences.
Jetour known for its luxury offerings is one of China’s most revered auto brands, a marque of Chery Holding Group established in 2018.
It mainly produces crossovers and Sports Utility Vehicles (SUVs).
The recognition of Jetour as the Fastest Growing Auto Brand in the country is coming about a year after its introduction into the Nigerian market.
Jetour arrived in Nigeria in the last quarter of last year. And the SUVs available for this market are X70 – Liberty, X70 Plus – Elegance, X90 Plus – Cruise and Dashing.
Chairman of the NAJA Awards Organising Committee, Mr Theodore Opara, said despite being new in the Nigerian market, the brand was quickly able to secure a prominent place for itself in the highly competitive industry and received considerable attention from new car enthusiasts.
The committee, he added, had no difficulty in picking the brand as the fastest growing in the Nigerian auto market.
The name “Jetour” is a combination of the word “jet” and “tour”, which according to the automaker signifies a “convenient journey”. And its models try to depict this connotation in designs and performance.
Jetour Mobility Services said it considered the award a great honour, adding that it was a validation of its commitment to innovation and creating remarkable driving experiences.
The firm celebrates the award on its Facebook page with the following comments:
“We’re honoured to be named the Fastest Growing Auto Brand of the Year at the prestigious NAJA Auto Awards, powered by the Nigeria Auto Journalists Association.
“This achievement is a testament to our commitment to innovation, quality, and creating unforgettable driving experiences.
“A huge thank you to our amazing customers and everyone who has been a part of the journey — your trust propels us forward! Cheers to more milestones ahead!”
Jetour says its focus is to be a leader in mobility as well as provide reasonable travel solutions for individuals and families.
Its goal is to provide an excellent vehicle that demonstrates individuality for today’s young people, it adds.
As in the global market, the brand users in Nigeria are said to be an uncompromising group of individuals, unwilling to settle for less.
Jetour is not only winning in Nigeria, it is also a toast of a section of the Saudi market. One of its models, Dashing, recently won the Best Midsize Crossover Award for 2023-2024.
National Automotive Supply Company, the authorised distributor of Jetour vehicles in the Kingdom of Saudi Arabia, announced that the new and advanced Jetour Dashing won the “Best Midsize Crossover” award during the awards ceremony of the 11th edition of the “PR Arabia National Automotive Award” in Saudi.
Jetour Dashing was announced as the winner at the ceremony held in mid-November in Jeddah under the patronage of the Saudi Automobile and Motorcycle Federation and in the presence of several princes and VIPs, as well as representatives of regional offices of automotive brands.
Business
NNPC rejected Dangote $750m offer to manage Nigeria’s refineries, days Obasanjo
NNPC rejected Dangote $750m offer to manage Nigeria’s refineries, days Obasanjo
Former President Olusegun Obasanjo has disclosed that the Nigerian National Petroleum Corporation (NNPC) rejected a $750 million offer from billionaire businessman Aliko Dangote.
In an exclusive interview with Channels TV, former President Olusegun Obasanjo revealed that in 2007, Dangote offered a staggering $750 million to manage the Port Harcourt and Kaduna refineries.
Obasanjo explained that the Nigerian National Petroleum Corporation (NNPC), now rebranded as NNPCL, rejected the offer due to its inability to operate the refineries effectively.
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He said, “Aliko got a team together and they paid $750m to take part in PPP (Public–public-private partnership) in running the refineries.
“My successor refunded their money and I went to my successor and told him what transpired. He said NNPC said they wanted the refineries and they can run it. I now said but you know they cannot run it.
“But I was told not too long ago that since that time, more than $2 billion have been squandered on the refinery, and they still will not work,” he added
NNPC rejected Dangote $750m offer to manage Nigeria’s refineries, days Obasanjo
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