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Nigeria's economic highlights
Banking sector shifts, currency fluctuations, and Dangote refinery updates.
Samuel Okocha
October 30, 2024
Samuel Okocha here, your curator and editor of 234Digest. It's almost 1 am on Thursday in Nigeria as I send out this letter, and I hope it finds you well. Though we missed the Tuesday dispatch, I'm excited to bring you this midweek edition, packed with the latest developments shaping Nigeria's economic landscape. From banking maneuvers to currency fluctuations, and from refinery updates to fintech triumphs, we've got a lot to unpack. Let's dive in.
Word for Word
"I expect the NNPC and marketers to stop importing. They should come and collect; we have everything they need." - Aliko Dangote
This statement from Africa's richest man encapsulates the current tension between domestic production and imports in Nigeria's oil sector, setting the stage for our top stories.
Today’s briefs
Access Bank, Nigeria's largest lender by assets, is eyeing dollar-denominated securities in the domestic market. The bank plans two tranches: one for development financial institutions and another for the open market. Managing Director Roosevelt Ogbonna expects the first tranche to be completed by mid-2025, aiming to fund expansion and meet central bank capital requirements.
Meanwhile, in a move to bolster the naira, the Central Bank of Nigeria has partnered with the International Finance Corporation. This collaboration aims to facilitate local-currency financing, potentially injecting over $1 billion into critical sectors like agriculture and infrastructure in the coming years.
Following these banking maneuvers, this week began with the naira hitting a new low on Monday, falling 4.3% to 1,670.65 against the dollar. This drop coincided with a 72% plunge in dollar liquidity to $81 million, its lowest in over a month, Bloomberg reported. Meanwhile, Nigeria's foreign exchange reserves reached a two-year high of $39.4 billion on October 24.
Amid these currency fluctuations, Aliko Dangote, founder of the Dangote oil refinery, countered fuel shortage claims, stating the facility has a 500 million litre petrol stockpile. The refinery, which began operations in September, aims to ramp up production to 35 million litres daily to meet local demand.
Turning to broader economic indicators, Central Bank Governor Olayemi Cardoso has pledged to use "any tools at our disposal" to manage inflation, which hit 32.70% in September. Despite economic challenges, Cardoso noted growing interest from foreign investors, citing recent visits by CEOs of major international banks.
In the fintech sector, Nigerian fintech Moniepoint has secured $110 million in funding from investors including Google, valuing the company at over $1 billion. The funds will fuel Moniepoint's expansion across Africa and support the development of an integrated business solutions platform.
Finally, a jihadist attack on a major transmission line has left 19 of Nigeria's 36 states without power for nearly two weeks, severely impacting economic activity in the northern region.
Quote of the day
"The best way to predict the future is to create it." - Peter Drucker
Photo of the day
A woman on a motorbike in Abuja balances a sack of plantains, her eyes fixed on the traffic ahead. The "Abuja Eye Hospital" sign in front creates a fitting metaphor for the vigilance required in Nigeria's bustling capital. This snapshot captures the essence of daily life in Africa's most populous nation, where staying alert – both literally and figuratively – is crucial for both safety and survival as millions navigate the challenges of urban life and economic survival. Photographer: Samuel Okocha/234Digest
That’s all for tonight’s edition. Stay tuned for an-depth analysis in our Sunday deep dive. As always, your feedback is welcome and appreciated.
Until Friday,
Samuel Okocha
Curator and Editor, 234Digest