The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, says the lifting of petroleum products from the Dangote Refinery will moderate foreign exchange demand pressures.

Cardoso who said this on Tuesday in Abuja, while presenting a communique from the apex bank’s 297th Monetary Policy Committee meeting, said that it would also moderate transportation costs, thereby easing food prices.

“The committee expressed optimism that the lifting of refined petroleum products from Dangote refinery will moderate transportation costs and significantly support the easing of food price pressures in the short to medium term.

This is also expected to moderate foreign exchange demand for the importation of refined petroleum products, with a positive spillover on external
reserve and improvement in the overall balance of payment position,” he said.

Cardoso also said that an assessment of the performance of Nigeria’s financial institutions indicated that they were stable.

“Members assessed the performance of key financial soundness indicators and noted with satisfaction that inspite of familiar headwinds, the banking industry
remains safe, sound, and stable.

“The Committee, however, emphasised the
need to sustain supervisory oversight on the industry to strengthen its continued support to the economy,” he said.

On food inflation, Cardoso said that the upside risks remained flooding, hike in energy prices,
scarcity of petrol and most importantly, insecurity in farming communities.

He said that, considering the weight of food in the Consumer Price Index (CPI) basket, the MPC recognised the efforts of the Federal Government to address insecurity in farming
communities.

He stressed the need to remain steadfast.

” In addition, the MPC applauded the ongoing effort of the Federal Government to bridge the food supply deficit through the duty-free import window for food commodities,” he said. 

Opening the week’s trading, the Nigerian Exchange Ltd. (NGX) market capitalisation advanced by N79 billion or 0.14 per cent to close at N56.536 trillion, from an opening of N56.457 trillion.

The All-share Index also added 0.14 per cent or 139 points, to close at 98,386.60 points, against 98,247.99 posted on Friday.

As a result, the Year-To-Date(YTD) return increased by 31.58 per cent.

Investors’ rally in the stocks of FBN Holdings, United Bank of Africa(UBA), Fidelity Bank, alongside, Nigeria Breweries and Transnational Corporation, among other advanced equities, drove the market’s positive performance.

The market breadth closed positive with 32 gainers and 20 losers on the floor of the Exchange.

On the gainers’ chart, FCMB and McNichols led by 10 per cent each to close at N8.89 and N1.87 per share respectively.

Fidelity Bank followed by 9.93 per cent to close at N14.95, Tantalizers gained 9.84 per cent to close at 67k, while Flour Mill increased by 9.81 per cent to close at N55.40 per share.

Conversely, Berger Paints led the losers’ chart by 9.83 per cent to close at N21.10, Daar Communications trailed by 9.33 per cent to close at 68k per share.

Deap Capital Management and Trust Plc lost 9.09 per cent to close at 90k, Secure Electronic Technology Plc dropped 7.46 per cent to close at 62k per share.

Honeywell Flour also declined by 5.12 per cent to close at N4.63 per share.

Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 18.06 per cent.

A total of 810.43 million shares valued at N8.29 billion were exchanged in 10,669 deals, compared to 554.22 million shares valued at N10.12 billion traded in 8,670 deals reported in the previous session.

Meanwhile, Mecure led the activity chart in volume and value with 400.08 million shares valued at N2.78 billion.

In its market review and outlook, Analysts at Cowry Asset Management Ltd., anticipated continuous bullish sentiment in the new week, with the market displaying resilience amid positive macro signals.

They said that this would be driven by portfolio rebalancing and strategic positioning in value-driven stocks.

According to the analysts, the recent dip in inflation and favorable quarter-end activities suggest that investor optimism may persist, creating entry
opportunities for those seeking fundamentally sound investments.

“However, we advise caution as market volatility remains a key factor.

“Investors should maintain a focus on quality stocks with strong growth prospects to navigate potential swings effectively,”

The United States Chamber of Commerce has expressed its willingness to invest about 320 million dollars in mortgage refinancing and Small and Medium Enterprises (SMEs) in Nigeria.

This is contained in a statement issued by the spokesperson of Vice-President Kashim Shettima, Mr Stanley Nkwocha.

Ms Nisha Biswal, the Deputy Chief Executive Officer of the U.S. International Development Finance Corporation, made this known on Monday.

The News Agency of Nigeria (NAN) reports Biswal spoke at a US-Nigeria Executive Business Roundtable hosted by the US Chamber of Commerce as part of activities at the ongoing 79th Session of the United Nations.

She explained that with a portfolio of one billion dollars, the chamber would invest 200 million dollars in mortgage refinancing in Nigeria.

” Also the sum of 100 million dollars has been earmarked for FCMB to finance SMEs in Nigeria, with particular interest in women empowerment.

” The US Chamber of Commerce also announced that 20 million dollars has been approved for a firm, Robust International, for processing of cashew nuts in Nigeria.”

Biswal emphasised that the American Chamber remained committed to working with Nigerians in the development and pursuit of sustainable economic policies.

Responding, Vice-President Shettima, who is leading the Nigerian delegation at the ongoing United Nations General Assembly (UNGA), reiterated President Bola Tinubu’s commitment to investor-friendly policies.

” I urge you to give Nigeria the benefit of the doubt. The current administration led by President Bola Tinubu is the most investor-friendly administration in the history of Nigeria.

” When fuel subsidy was an albatross around Nigeria’s neck, President Tinubu, from day one, hit the ground running by withdrawing the fuel subsidy and unifying the multiple opaque foreign exchange markets.”

Earlier, the Minister of Foreign Affairs, Amb. Yusuf Tuggar, led other members of the delegation to brief the Vice-President on the activities and itinerary lined up for him in New York.

Tuggar, while outlining the programmes and activities, said that the Vice-President was expected to deliver President Tinubu’s national statement at the General Debate of the UNGA.

He added that apart from President Tinubu’s national statement delivery, Shettima is also expected to meet with the Secretary General of the United Nations.

Similarly, aside other heads of states lined up to meet with the Vice-President, there are also scheduled meetings with the head of the African, Caribbean and Pacific States.

Shettima will also meet with the President of the World Trade Organization (WTO), Dr Ngozi Okonjo-Iweala; Director-General of the International Atomic Agency, and multinational companies, among others.

Also on the itinerary of the Vice-President is a meeting with the Bill and Melinda Gates Foundation and a host of other international partners. 

The Nigerian Railway Corporation (NRC) has recorded a growth of 45.38 per cent in passengers who travelled through the rail in second quarter of 2024.

  This data was released by the Nigerian Bureau of Statistics (NBS) in its Rail Transportation Data (Q2 2024) released at the weekend. 

  In Q2 2024, a total of 689,263 passengers travelled via rail system relative to 474,117 reported in the corresponding quarter of 2023, indicating a growth rate of 45.38%.

 The NRC also in terms of revenue generation, N1.69 billion was received from passengers during the reference period, showing an increase of 53.14 per cent from the N1.10 billion recorded in the same quarter of the previous year. 

  The volume of goods/cargo transported via rail in Q2 2024 stood at 143,759 tons compared to 56,936 tons recorded in Q2 2023. 

  In the quarter under review, the NRC reported an additional volume of goods/cargo transported via pipeline which stood at 5,940 tons, higher than 2,856 tons in Q2 2023.

  Similarly, N537.36 million was collected from goods/cargo con veyed via rail in Q2 2024, up by 206.68 per cent from N175.22 million received in Q2 2023.

   In addition, revenue generated from the movement of goods/cargo via pipeline stood at N42.08 million in Q2 2024, higher than the N12.81 million reported in the corresponding period of last year. 

  Other receipts amounted to N994.68 million, indicating an increase of 5,206.68 per cent in Q2 2024 from the N18.74 million received in Q2 2023.

Coca-Cola will invest $1 billion in Nigeria over the next five years, foreseeing “significant social and economic advancements” as the West African nation tries to fix the economy.

President Bola Tinubu’s media adviser Bayo Onanuga said Thursday that the beverage giant announced the plan during a meeting between Tinubu and Coca-Cola’s global leadership.

Several multinationals have shuttered operations in Africa’s most populous nation, citing a challenging business environment and lack of access to foreign currency.

“Over the next five years, with a predictable and enabling environment in place, (Coca-Cola) plans to accelerate its investments in Nigeria to reach $ 1 billion,” the US-based giant said in a statement.

Coca-Cola said the investment will provide support for its value chain including “suppliers, distributors, retailers, and recyclers.”

“We are building a financial system where you can invest, re-invest, and repatriate all your dividends,” Tinubu said in a statement.

It is a respite for Nigeria which has been seeking foreign direct investment to strengthen its economy and boost dollar liquidity.

Nigeria’s economy took a hit after Tinubu removed government backing for the local naira currency and ended long-standing fuel subsidies immediately after coming to power in May 2023.

Tinubu says despite the short-term pain, the reforms will benefit Nigeria and bring in foreign investment.

Inflation slowed for the second consecutive month in August to 32.15 percent after reaching almost a three-decade high of 34.19 percent in June.

Coca-Cola said it foresaw “significant social and economic advancements” in Nigeria.

“Our investment goes beyond business growth; it’s about contributing to the well-being of the communities we call home,” said Zoran Bogdanovic, the CEO of Coca-Cola Hellenic Bottling Company — one of the Coca-Cola’s many bottlers worldwide.

Coca-Cola’s business in the country, the Nigerian Bottling Company, was registered in 1951.

In 2019, it acquired local beverage maker Chi Limited after initially buying 40 percent stake in the company for $240 million in 2016.

The Federal Government has announced plans to introduce a consumer credit funding programme and a single-digit mortgage scheme aimed at easing financial burdens on Nigerians.

The initiative was revealed by the Minister of Finance and Coordinating Minister of the Economy, Mr Olawale Edun, during Access Bank’s Corporate Forum in Lagos on Thursday.

Edun stated, “Consumer credit is coming for Nigerians. It will be for the funding of manufacturing and sales of manufacturing products by giving people the opportunity to pay as they go, especially for more durable products.”

He stressed the government’s commitment to providing nearly single-digit interest rates for 25-year mortgages to stimulate the construction sector.

In addition to these financial initiatives, Edun noted the government’s collaboration with farmers, stating that 60,000 farmers would receive necessary resources, with results expected by early next year.

“This government may not be talking too much but we are working on so many things un­derground for the benefit of Ni­gerians. By next January, February, Nigerians will begin to see these harvests coming out. Things like cassava and tubers,” he said.

“Let me just emphasise once again, that all is being done to en­sure that the commitment of Mr. President to help the vulnerable, to provide them with direct trans­fers means that they can decide what is their priority, which is a very good way of intervening. As we found during COVID-19, there is the determination to succeed in that area.”

Edun also noted that the country has seen a net inflow of $2.35 billion into the Central Bank of Nigeria’s (CBN) foreign reserves over the past seven months, which has contributed to the stability of the naira.

He said, “This uptick has been the case for the past sev­en months of the year 2024. We have relative currency stability. And of course, the all-important margin of the rates. We’ve seen a gradual elimination of multiple exchange rates. We also have foreign exchange liquidity. The gross reserves are up. There has been a net inflow in the first seven months of this year of about $2.35 billion every month.

“On the fiscal side as well, government revenues are grow­ing and the key to government revenue is not so much that the government has revenue to com­pete with the private sector.”

Looking ahead, Edun projected improved gross domestic product (GDP) growth for Nigeria by 2026, with an aim to increase crude oil production to two million barrels per day before the end of 2024.

He stressed that electricity tar­iff will remain above 200kwh in bands ‘A and B’; telecom tariff will increase substantially; there will be an efficient forex auction system; unencumbered foreign reserves will be at $20 billion; inflation will continue to decline to 22 per cent; and MPR will be reduced to 20 per cent per annum.

Economist Bismarck Rewane echoed these optimistic projections, forecasting a 3.5 per cent growth in the Nigerian economy by 2026. He anticipated ongoing reforms in tariffs, foreign exchange systems, and inflation rates.

Roosevelt Ogbonna, Managing Director of Access Bank, stressed the importance of understanding the government’s fiscal policy for businesses, stating, “Government is still a large part of our economic narrative.”