Nigeria’s naira on a winning streak: The currency’s climb and national updates

From the desk of Samuel Okocha, curator and editor at 234Digest: It’s 1:55 am on Saturday here in Nigeria, and while the country sleeps, our commitment to delivering the latest economic news burns bright. Despite the public holiday pause for Eid al-Fitr, we’re here, ensuring that 234Digest doesn’t skip a beat in its bi-weekly schedule.

In the quiet of the early hours, we’re reminded that our work—like the festival we’ve just celebrated—is about perseverance, reflection, and community. This edition is a product of that dedication, a timely update on Nigeria’s economic landscape for our readers who count on us. Thank you for making 234Digest a part of your routine. Here’s to staying informed and connected, no matter the hour.

Let’s get started.

Naira continues to outshine global currencies

Nigeria’s naira is on a trajectory to maintain its stellar performance, potentially retaining its position as the world’s top-performing currency for the current month. This forecast comes from a Goldman Sachs Group Inc. economist, as reported by Bloomberg.

The naira has appreciated 12% against the dollar in April, following a robust 14% rise in March. This upturn follows the currency’s experience of two devaluations since June, which were a result of the Nigerian government’s decision to relax currency controls.

The naira’s rally is supported by a surge in capital inflows and a series of strategic interest rate hikes by the Central Bank of Nigeria (CBN), which raised the interest rate to 24.75% last month. These measures have helped the currency recover from the substantial losses incurred due to the devaluations. The CBN’s interventions, including selling FX to Bureau De Change operators at a revised rate, have contributed to the naira’s appreciation.

Goldman Sachs had previously forecasted that the naira would appreciate to N1,200 per dollar in 2024, a projection that became a reality when the naira exchanged at N1,230.61 at the official market and N1,200 at the parallel market. With the current momentum, the naira may exchange below N1,000 per dollar in the coming months, as suggested by the latest Goldman Sachs report.

Long stories short

Oil cargoes await buyers: Nigeria’s crude oil sales for May are progressing slowly, with over half of the cargoes awaiting buyers. Traders report that more than 30 cargoes are still on the market, from a total of at least 53 set to load next month.

Doctors on the move: Nigeria’s healthcare sector is losing thousands of doctors and nurses to emigration due to high inflation, low salaries, and an overstretched system. Health Minister Muhammad Ali Pate reports that up to 16,000 doctors have left in the past five years.

Legal challenges in the crypto space: A Binance Holdings Ltd. executive, Tigran Gambaryan, faces trial in May after being detained for over 40 days on charges of tax evasion and fraud. He has been remanded to the Kuje correctional center in Abuja.

NGX expands in East Africa: Nigerian Exchange Group Plc has acquired a 5% stake in the Ethiopian Securities Exchange, marking a significant expansion into East Africa’s capital markets.

Recall of children’s cough syrup: Nigeria’s health regulator is recalling a batch of Johnson & Johnson children’s cough syrup due to high levels of diethylene glycol, a toxic substance linked to child fatalities in medication poisoning cases since 2022.

Chibok Girls, a decade later: A decade after their abduction, the Chibok Girls’ plight remains largely out of the media spotlight, a continuing tragedy.

Lawsuit over helicopter crash: The family of Abimbola Ogunbanjo, former chair of the Nigerian stock exchange, has filed a lawsuit following a fatal helicopter crash in adverse weather conditions, also claiming the lives of Access Bank CEO Herbert Wigwe and his family.

Corruption probe recovers millions: A suspended Nigerian minister, Betta Edu, is at the center of a probe that has recovered 30 billion naira ( $24 million) from over 50 bank accounts.

Celebrity sentenced for currency ‘spraying’: Bobrisky, a well-known LGBTQ figure, has received a six-month jail sentence for “spraying” banknotes at a film premier, a local celebration practice prohibited by law for damaging the national currency, the naira.

 Quote of the day: “Cherish all your happy moments; they make a fine cushion for old age.” - Booth Tarkington

Photo of the day

And that’s a wrap. I hope the stories have given you a snapshot of Nigeria’s economic heartbeat. From the naira’s impressive rally to the NGX’s strategic moves, each sentence is a thread in the larger narrative of our nation’s progress.

Stay curious, stay informed, and we’ll be back with more updates on Sunday. Until then, let’s keep the conversation going.