Business
Nigeria’s External Reserves Rise 2.83% Amid Foreign Inflows
In a testament to Nigeria’s economic strength, the country’s external reserves have surged by 2.83% year-to-date, propelled by increased foreign capital and remittances.
Recent data from the Central Bank of Nigeria (CBN) reveals a noteworthy uptick, with foreign currency reserves reaching $34.11 billion as of March 7, 2024—up from $33.17 billion at the beginning of the year.
This boost in reserves, comprising foreign currencies, gold, and other international assets, reflects Nigeria’s ability to navigate and thrive amid global economic currents.
Recall that on Wednesday, the CBN unveiled a striking surge in Diaspora remittances.
February witnessed an extraordinary spike, with remittances skyrocketing by an astounding 433%, surging to $1.3 billion compared to the $300 million reported in January.
It said “We saw a 1.0 percent week-on-week (w/w) accretion in the foreign reserves to $34.02bn as of March 6th, 2024, owing to foreign capital inflow (evident in the year-to-date (YTD) foreign net inflows of $822.6m through the NAFEM window) following CBN’s drive to attract FX, analysts at Afrinvest Securities Limited.”
On Friday, the Naira experienced a 1.55% depreciation, with the dollar quoted at N1,627.40, marking a decline from Thursday’s N1,602.17, as reported by the FMDQ Securities Exchange.
The intraday high also weakened to N1,640 per dollar on Friday, compared to N1,635 on Thursday.
However, the intraday low showed improvement, reaching N1,413/$1 on Friday, stronger than Thursday’s N1,470/$1.
Notably, there was a substantial increase in dollar supply, rising by 63.48% to $269.35 million on Friday, up from $164.76 million recorded on Thursday.
In the parallel market, commonly referred to as the black market, the Naira remained stable at N1,620 per dollar.
Governor Olayemi Cardoso of the Central Bank of Nigeria (CBN) announced, following the Monetary Policy Committee (MPC) meeting on February 27, 2024, that the country’s external reserves had increased to $34 billion from the initial $33 billion at the beginning of the year.
Moreover, on February 5, 2024, the CBN reported a reduction in the inherited $7 billion FX backlog to $2.2 billion.
The CBN expressed its commitment to resolving the outstanding balance, demonstrating efforts to address foreign exchange challenges.
According to a weekly report by Afrinvest, the Naira maintained stability across the FX market, trading within a similar band as the preceding week.
The report highlighted a 41.4% improvement in activity at the NAFEM Window, totaling $421.6 million, a notable increase from the previous week’s $473.1 million.
Furthermore, the report indicated a 4.9% week-on-week depreciation of the Naira against the dollar at the NAFEM Window, with the exchange rate falling to N1,627.40/$1.00.
Additionally, the parallel market witnessed a 5.3% week-on-week dip in the Naira against the dollar, settling at N1,600.00/$1.00.
It said “We note that the spread between the NAFEM and parallel rates sustained its streak for the second week though the weekly average declined 98.8 percent to N27.40.
“In the week ahead, the Naira is likely to trade within a similar band across FX segments, supported by intensified regulatory spotlight, the analysts.”
In a press briefing held in Abuja, Hakama Sidi Ali, the acting director of corporate communications at the Central Bank of Nigeria (CBN), underscored a substantial increase in overseas remittances, surpassing four times the figures from the preceding month.
Ali emphasized the heightened interest of foreign investors in Nigerian assets, revealing investments exceeding $1 billion in February alone.
Additionally, she highlighted a positive trajectory in total portfolio flows for 2024, reaching $2.3 billion, showcasing promise compared to the $3.9 billion recorded for the entire previous year.
In addition, Ali highlighted that the momentum of increased foreign exchange inflows continued into March 2024.
This surge was attributed to a heightened investor appetite for short-term sovereign debt following adjustments to benchmark interest rates.
A significant development was observed in government securities issuances, with substantial oversubscription.
Foreign investors took a leading role, contributing to over 75 percent of the total bids received during auctions conducted on March 1 and 6, 2024.
In a sharp turn of events, the Nigerian Naira took a significant tumble on Tuesday, plunging to N1,416.57 against the US dollar at the official market.
This staggering drop of N62.36 from the previous trading day represents a 4.60 percent loss, sparking concerns among investors and analysts alike.
Data from the FMDQ Exchange, overseeing the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed this unsettling trend.
Despite the currency’s downward spiral, trading activity surged, with the daily turnover soaring to $160.77 million, compared to Monday’s $84.83 million.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira’s performance remained volatile, trading between N1,445 and N1,301 against the dollar, underscoring the currency’s precarious position in the market.
The management of Dangote Cement Plc., Ibese Plant has assured that it would continue to complement the efforts of the Ogun State Government in the development of its host communities through capacity building for the people, especially the youths.
In a statement, the company declared its commitment to development for the prosperity of the people and host communities for which it is placing a premium on the developmental needs of the communities and empowerment of their indigenes.
During a capacity development workshop for Host Community Representatives, General Manager, Human Asset Management/Admin, Aina Olugbenga, said, Dangote Cement remained committed to implementing value-adding empowerment programs to uplift the people and develop the host communities.
The workshop themed: “Team Building, Inclusivity and Stewardship, a panacea to effective Community Representatives” according to him, was to equip the Community reps with the right skills to offer quality representation for their people. He stated: this capacity building workshop is aimed at developing and strengthening the skills, instincts, and abilities of the communities through their representatives adapt and thrive in a fast-changing world.
Olugbenga noted that the workshop is part of the management’s strategy to improve relationships with the host communities and urged the participants to leverage the knowledge acquired from the workshop to improve service delivery to their people and the Cement plant.
According to him, Dangote Cement, Ibese Plant is committed to building the capacity of the people and institutions in the communities by identifying skill gaps and partnering to up their skills for economic prosperity. This, he stated, was in anticipation that other stakeholders will continue to play their part by partnering and supporting the Company to ensure peaceful co-existence and shared prosperity for all.
Said he, “Apart from reciprocating the good gesture of Dangote Cement by ensuring peace at all times and keeping an open and trusting mind towards the organization, we also desire from our community leaders and representatives who are present here, the ownership of all Social Investment programme, be it training or infrastructure because they are meant for the betterment of our people.”
On behalf of the Community Representatives, Hon. Dayo Ogunyinka thanked the Dangote Cement management for the workshop while assuring continued commitment to effective, efficient and selfless discharge of their roles and responsibilities to their various communities and the Plant.
The Nigeria Deposit Insurance Corporation (NDIC) has announced revisions to the Maximum Deposit Insurance Coverage for banks operating within the country.
NDIC’s Managing Director, Bello Hassan, disclosed the updated coverage benchmarks during a media briefing in Abuja on Thursday.
The coverage for Deposit Money Banks has been increased from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ pass-through from N500,000 to N5 million per subscriber.
Hassan underscored that the objective of the update is to enhance depositor safety, foster public trust, promote the inclusivity of financial services, and ensure the overall stability of the financial sector.
More to follow.. . .. .
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