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Navigating Nigeria's economic waves: Key developments and insights
From crude oil sales to foreign investments surges and new air routes
Samuel Okocha
October 10, 2024
Welcome to today’s edition of 234Digest! I’m Samuel Okocha, the curator and editor of 234Digest. Last week, I embarked on an exciting journey to transform 234Digest from a weekly highlight to a daily staple, publishing from Tuesdays to Fridays, with deeper dives into key stories on Sundays. My unexpected absence on Wednesday was a hiccup, but I’m thrilled to be back in your inbox, maintaining the momentum. It’s 2:31pm here in Nigeria as I hit send on this newsletter. This transition has taught me valuable lessons in time and energy management. I’m eager to see what more I’ll learn as I strive to deliver daily, snappy, and nonpartisan insights on Nigeria’s economy and business environment.
Today’s briefs
Nigeria will settle crude oil sales to Africa’s largest refinery using the naira’s rate in its foreign-exchange market, calming fears that the government would peg below-market rates for these transactions. The Dangote oil refinery, owned by billionaire Aliko Dangote, will pay the local-currency equivalent of the global benchmark price using the central bank’s Nafemwindow rate, according to sources.
In an unexpected twist, the Nigerian Communications Commission (NCC) has retracted its announcement regarding the sanctioning of Elon Musk's Starlink for tariff hikes. The NCC now claims that the statement was "made in error." Initially, the commission had planned to sanction Starlink for failing to seek approval before increasing tariffs, with SpaceX’s Starlink nearly doubling its monthly subscription to 75,000 naira ($46) and raising equipment charges by 34% to 590,000 naira, citing inflation. This retraction brings a new turn to the regulatory saga.
Foreign capital inflow into Nigeria surged to $6 billion in the first half of 2024, more than doubling from last year as investors returned following eased currency controls. The National Bureau of Statistics reported inflows of $5.98 billion, up from $2.16 billion in the same period last year, with the UK and Netherlands leading the charge. The central bank’s policy to freely trade the naira, alongside President Bola Tinubu’s reforms, has sparked renewed investor interest.
In aviation news, two Nigerian airlines, Air Peace and Caverton, have been designated to operate on the Nigeria-Brazil route. This development follows discussions between Nigeria’s Minister of Aviation, Festus Keyamo, and Brazil’s Ambassador, Carlos Garcete. The talks aimed at activating the Bilateral Air Service Agreement (BASA) signed in 2018 to enhance air connectivity and economic cooperation—a shared vision reiterated by Presidents Tinubu and Lula in their February 2024 meeting.
Quote of the day: "The future belongs to those who believe in the beauty of their dreams." - Eleanor Roosevelt
Photo of the day
Hanging like freshly laundered clothes on a makeshift line strung between a tree and a pole, local newspapers sway gently by the roadside. A man stands absorbed, his eyes flipping through the front pages. This scene underscores, and perhaps questions, the enduring presence of print media amidst the digital revolution, capturing the essence of how Nigerians consume news in a world increasingly dominated by screens and pixels. Photographer: Samuel Okocha/234Digest
And that’s all for today’s 234Digest. If you’re new here and find the insights and updates valuable, consider subscribing now to ensure you receive every edition in your inbox. Until tomorrow!