JUST IN: Nigeria’s forex reserves hit 3-month high – Newstrends
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JUST IN: Nigeria’s forex reserves hit 3-month high

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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)

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Carloha announces Chery SUV gift for NAPE Charity Golf Tournament winner 

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Carloha announces Chery SUV gift for NAPE Charity Golf Tournament winner 

 

Ultimate winner of the forthcoming NAPE Charity Golf Tournament holding in Abuja will drive home Chery Tiggo 8 Pro, a superlative sport utility vehicle.

Carloha Nigeria, one of the major sponsors of the event, disclosed this in a statement issued in Lagos.

The golf tournament is scheduled to take place at the prestigious IBB Golf & Country Club, Abuja, on October 26, 2024.

Carloha, franchise holder and assembler of Chery vehicles in Nigeria, said its sponsorship of the tournament was part of its commitment to fostering sports development in the country.

Part of the statement read, “Chery is offering its flagship SUV, the Tiggo 8 Pro as the ultimate prize for any player who achieves a hole-in-one during the tournament.

“This event promises to be an unforgettable experience for golf enthusiasts and those passionate about positively impacting our community.”

It specifically noted that the highlight of the tournament would be the incredible hole-in-one winning feat attracting a prize of Chery Tiggo 8 Pro generously provided by Carloha without insurance premium coverage for the tournament.

This prize is said to underscore Chery’s support for sporting initiatives in Nigeria and reflect the brand’s passion for nurturing talent and promoting community engagement through sports.

Director of Sales for Carloha Nigeria, Mr. Joseph Omokhapue, said, “We are glad to be one of the major partners in the NAPE Charity Golf Tournament, and offering an amazing prize for the hole-in-one with Tiggo 8 Pro represents Chery’s dedication to supporting sports in Nigeria, as well as enhancing the excitement and competitiveness of the tournament, making it an event to remember.

“More importantly, this gesture is one of the many ways Carloha is contributing to the underprivileged in our society by associating with the NAPE Charity Golf Tournament.”

By participating in this prestigious event, Golfers have the chance to showcase their skills and also contribute to a worthy cause.

Proceeds from the tournament would go towards supporting local charities, creating a lasting impact on the lives of those in need, the statement added.

The Tiggo 8 Pro, according to the firm, is renowned for its luxury, cutting-edge technology, stylish design, dynamic performance, and it perfectly embodies Chery’s dedication to excellence for on and off-road experience.

The Tiggo 8 Pro features an elegant, high-tech electronic gearshift system that provides effortless and precise control, enhancing safety performance and ease of operation, adeptly tailored for the diverse terrains of Nigeria.

It urged golfers and sports enthusiasts to get ready to swing for success at the NAPE Charity Golf Tournament.

“We look forward to seeing you at the IBB Golf Country Club as we come together to make a difference, promote sports development in Nigeria, and celebrate the Chery brand,” it stated.

As part of its commitment to make vehicle ownership easy and affordable for all, Carloha Nigeria offers a remarkable 6-year warranty/200,000 kilometers, 6-year free service on all Chery vehicles, a flexible auto financing solution with the best price for all vehicles, and 24/7 services and parts support nationwide.

This ensures that owners can enjoy their Tiggo 8 Pro with confidence, knowing they have reliable support and service from Chery for years to come.

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NNPC to establish 40 new CNG stations nationwide

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NNPC to establish 40 new CNG stations nationwide

The Nigerian National Petroleum Company (NNPC) has acquired equipment to establish 40 new Compressed Natural Gas (CNG) stations across the country, as part of efforts to expand CNG infrastructure.

This comes as the Federal Government aims to set up 100 CNG stations within six months.

Oluwagbemi Michael, Director of the Presidential CNG Initiative, revealed the plans during an event in Ogun State.

He noted that 12 CNG stations were set up in the past year, six in Abuja and six in Lagos, with further expansion underway.

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This move follows concerns over the limited availability of CNG stations, which has slowed the adoption of CNG as an alternative to petrol.

Michael highlighted ongoing investments in infrastructure, including a recent N122bn funding for private companies involved in CNG distribution.

He also mentioned the government’s plan to distribute one million CNG conversion kits to commercial drivers, which is expected to increase demand and attract more investors to the sector.

Additionally, existing petrol stations are being upgraded to include CNG refuelling points, with 40 such upgrades planned by the NNPC.

NNPC to establish 40 new CNG stations nationwide

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MTN threatens to shut down services without tariff hike

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MTN threatens to shut down services without tariff hike

MTN Nigeria has warned of a potential shutdown if tariffs are not increased to address the rising operational costs that are threatening the profitability of the telecommunications sector.

During a tour of MTN’s facilities in Ibeju-Lekki, Lagos, MTN’s CEO, Karl Toriola, said the telecom sector has been facing significant financial losses and urgent measures are needed to reverse the trend.

Toriola pointed out that MTN, which currently has around 78 million subscribers, is operating on reserves accumulated over the past two decades, a situation he described as unsustainable.

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The company’s operating costs, especially diesel prices needed to power its base transceiver stations, have surged, adding pressure to its financial performance, he added.

The CEO stressed the importance of returning the telecom industry to profitability, warning that without a tariff hike, MTN might be forced to shut down operations.

“There should be no delusion; if the tariff doesn’t go up, we will shut down,” he said.

He noted that MTN, once one of the largest corporate taxpayers in Nigeria, has seen a decline in its tax contributions due to the financial challenges the sector is facing.

MTN threatens to shut down services without tariff hike

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