Business
JUST IN: Nigeria’s forex reserves hit 3-month high
JUST IN: Nigeria’s forex reserves hit 3-month high
Nigeria’s foreign exchange (FX) reserves have climbed to their highest level since March 28, 2024, marking a significant financial achievement that aligns with the longest stretch of exchange rate stability seen in over a year.
This milestone comes as Nigeria secures a series of financial commitments from the World Bank through new multilateral loans.
The latest data from the Central Bank of Nigeria (CBN) reveals that the reserves now stand at $33.58 billion as of June 19, 2024. This marks a substantial recovery from the end of March 2024, when the reserves peaked at $33.83 billion before entering a period of decline.
The rise in FX reserves follows three months of notable fluctuations, which saw the reserves plummet to a low of $32.11 billion on April 19, 2024, raising concerns about the nation’s financial stability. In response, the central bank Governor addressed the issue at the IMF Spring meeting in April.
Since then, a steady and consistent upward trajectory has been observed, coinciding with a period of exchange rate stability. This month, the official exchange rate has averaged N1,481/$1, fluctuating within a narrow band of plus or minus 0.06%.
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According to CBN data, forex reserves have risen by 5%, or $1.47 billion, in the last two months, climbing from $32.11 billion on April 19, 2024, to $33.58 billion by June 19, 2024. This growth represents a significant boost for the country’s external reserves, as the CBN continues to implement policies that attract forex liquidity.
Critics, however, will note the improved liquidity position, considering the myriad of policies implemented by the central bank over the past year and several promises of potential forex inflow from foreign portfolio investors. Improved liquidity in forex turnover has been observed, with the average turnover for June to date at $199 million daily compared to $168 million in the same period in May. Total forex turnover in June is now $2.1 billion, spanning 11 days of trading.
The Monetary Policy Committee (MPC) recently urged the CBN to focus on boosting external reserves. The Monetary Policy Communique from its 295th meeting noted:
“The Committee also noted the marginal increase in the external reserve balance between March and April 2024 and urged the Bank to sustain its focus on accretion to reserves.”
To ensure a steady flow of foreign exchange into the country, the CBN plans to double diaspora remittance inflows this year.
Additionally, Afrexim Bank recently disbursed $925 million, another tranche of the $3.3 billion crude oil-backed loan agreement with the NNPC from last year. This brings the total payment for the facility to $3.175 billion, aiming to stabilize the forex market amid severe volatility.
Moreover, the World Bank has approved $2.25 billion in loans to Nigeria to bolster economic stability and support vulnerable populations. This financial injection is designed to provide immediate financial and technical support for Nigeria’s urgent economic stabilization efforts.
JUST IN: Nigeria’s forex reserves hit 3-month high
(NAIRAMETRICS)
Business
PH refinery: 200 trucks will load petroleum products daily, says Presidency
PH refinery: 200 trucks will load petroleum products daily, says Presidency
No fewer than 200 trucks are set to load petroleum products at the government-owned Port Harcourt Refinery, the presidency has said.
A presidential spokesperson, Sunday Dare, made this known in a statement through his official X handle on Tuesday.
Newstrends had reported that the Nigerian National Petroleum Company on Tuesday announced that Port Harcourt Refinery has resumed operations and crude oil processing after years of inactivity.
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Reacting, Dare said, “200 trucks are expected to load products daily from the refinery, Renewing the Hopes of Nigeria.”
He added that “the Port Harcourt refinery has two wings.
“The Old Refinery comes on stream today with an installed production capacity of 60, 000 barrels per day of crude oil.”
PH refinery: 200 trucks will load petroleum products daily, says Presidency
Business
Breaking: CBN increases interest rate to 27.50%
Breaking: CBN increases interest rate to 27.50%
The Central Bank of Nigeria (CBN) has raised the lending interest to 27.50 per cent from 27.25 per cent.
This latest increase in the Monetary Policy Rate came after a meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Monday and concluded Tuesday.
The Monetary Policy Rate measures the benchmark interest rate.
The CBN Governor, Yemi Cardoso, announced this in Abuja on Tuesday after the MPC meeting, last for the year, held at the apex bank’s headquarters.
He said the MPC voted unanimously to raise the MPR by 25 basis points from 27.25% to 27.50%; and retain the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks.
The CBN governor also said the MPC retained the Liquidity Ratio (LR) at 30% and Asymmetric Corridor at +500/-100 basis points around the MPR.
Business
Nigeria’s unemployment rate dropped to 4.3% in Q2 – NBS
Nigeria’s unemployment rate dropped to 4.3% in Q2 – NBS
Nigeria’s unemployment rate stood at 4.3 per cent in the second quarter of 2024, the National Bureau of Statistics (NBS) has said in its latest report.
The report released on Monday said the unemployment rate decreased compared to the 5.3 per cent recorded in the Q1 of 2024.
The NBS defined the unemployment rate as the share of the labour force (the combination of unemployed and employed people) who are not employed but actively searching and are available for work.
“The unemployment rate for Q2 2024 was 4.3%, showing an increase of 0.1 percentage point compared to the same period last year,” the report stated.
“The unemployment rate among males was 3.4% and 5.1% among females.
“By place of residence, the unemployment rate was 5.2% in urban areas and 2.8% in rural areas. Youth unemployment rate was 6.5% in Q2 2024, showing a decrease from 8.4% in Q1 2024.”
Report also said the unemployment rate among persons with post-secondary education was 4.8 per cent; 8.5 per cent among those with upper secondary education, 5.8 per cent for those with lower secondary education, and 2.8 per cent among those with primary education in Q2 2024.
Employment rate – 76%
The report showed that the employment-to-population ratio, which measures the number of employed workers against the total working-age population, increased to 76.1 per cent in Q2 2024.
“In Q2 2024, 76.1% of Nigeria’s working-age population was employed, up from 73.1% in Q1 2024,” the report stated.
Self-employment – 85.6%
The report further showed that Nigeria’s labour market saw a notable shift as the proportion of self-employed individuals increased in Q2 2024.
It stated, “The proportion of persons in self-employment in Q2 2024 was 85.6%.”
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