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Consumer Prices Improve Slightly to 17.24%



Nigeria's Inflation Rate - Investors King
  • Consumer Prices Improve Slightly to 17.24%

The cost of goods in Africa’s largest economy improved for the third consecutive month in April.

According to the data released by the National Bureau of Statistics, NBS, the consumer price index (CPI) which measures inflation improved from 17.26 percent (year-on-year) recorded in March to 17.24 percent in April. Suggesting that the cost of goods have started moderating following a series of foreign exchange policy being implemented to curb escalating exchange rates and close the gap between the official window and the parallel market.

On a monthly basis, the consumer prices declined by 0.02 percent, slightly lower than the 0.52 percent decline recorded in March when the inflation rate was 17.26 percent.

However, the Central Bank of Nigeria which has sold about $4 billion so far introduced a new forex window in April to ensure that exporters and investors access foreign exchange at a market determined rate.

Ever since the new forex platform was floated, business confidence has surged to a new height, prompting both the local and foreign investors to increase their investment holdings. A move that has bolstered Nigerian Stock Exchange index to a 9 month high and position Nigeria as one of the 2018 investment destinations, barely a month after the new forex window was launched.

“The consumer prices and foreign exchange market have started exhibiting similar characteristic, the rate of decline is no longer proportional to the CBN intervention,” said Samed Olukoya, a foreign exchange research analyst at Investors King Ltd. “Therefore, the CBN has to address the fundamental factors impeding forex rate from improving below N388/$ even after about $4 billion has been sold to reduce illiquidity in the forex market.”

Speaking further, he said: “The rate of moderation of the consumer prices has started stalling, meaning we might not see significant improvement henceforth unless the CBN address those underlying factors.”

The CBN inject another $457 million into the forex market on Monday.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


Nigeria Receives £4.2 Million Looted By James Ibori



James Ibori

The government of the United Kingdom has repatriated the sum of £4.2million that was looted by associates and family members of the convicted former governor of Delta State, James Ibori.

The Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami, SAN, on Tuesday confirmed the receipt of the looted fund in a statement he made available to newsmen in Abuja.

In the statement signed by Malami Special Assistant on Media and Public Relations, Dr. Umar Gwandu, the Minister of Justice disclosed that the naira equivalent of the amount was credited into the designated Federal Government account on May 10, 2021.

The AGF had earlier signed a Memorandum of Understanding for the repatriation of the loot fund on behalf of the Federal Government of Nigeria.

According to him, “the development was a demonstration of the recognition of reputation Nigeria earns through records of management of recovered stolen Nigerian stolen in the execution of public oriented projects”.

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AfDB, European Bank To Bridge $2.5tn Africa’s Financing Gap




The African Development Bank Group and the European Bank for Reconstruction and Development signed a Memorandum of Understanding on Monday to promote sustainable private sector development in Africa.

In a statement issued by its Communication and External Relations Department, the AfDB said, “The MoU will help catalyse new sources of financing to help bridge the $2.5tn annual financing gap for development in Africa.

“This gap requires that development finance institutions work in partnership.”

The bank stated that under this partnership, the AfDB and the EBRD would capitalise on their respective

expertise and experience, with a particular focus on climate change, green and resilient infrastructure and capital markets development.

“They will also work on improving business environments, bolstering the real economy and mobilising private sector investment,” the AfDB stated.

It observed that COVID-19 was threatening progress made towards the United Nations Sustainable Development Goals and was exacerbating the debt vulnerability of many African countries.

The bank stated that sustainable private sector development would be key to recovery and prosperity across the continent.

AfDB’s President, Akinwumi Adesina, after signing the memorandum with his counterpart, EBRD President,

Odile Renaud-Basso, was quoted as saying, “The new partnership agreement between our two institutions will pave the way for us to do more together, especially in supporting the growth of Africa’s private sector.

“The impact of COVID-19 on government resources is huge and we need to mobilise more private resources to help African countries build back stronger.”

On his part, Renaud-Basso, said, “The COVID-19 crisis has made the need for better and ever closer collective action even more urgent.

“Collaboration between the EBRD and the African Development Bank has grown from strength to strength over the years in the region.”

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Despite Rising Debt Profile, President Buhari Seeks New N2.342T External Loan



Muhammadu Buhari

President Muhammadu Buhari, on Tuesday, urged the Senate to approve a new external loan of N2,343,387,942,848.00, about $6.183billion, for the Federal Government to finance the 2021 budget deficit.

Senate President Ahmad Lawan read Buhari’s letter of request on the floor of the Senate at plenary.

Last Month, Investorsking recalled that there was a controversy when Edo State Governor, Godwin Obaseki had raised concerns over the financial trouble Nigeria might find herself due to the continuous rising debt profile.

In a recent report carried out by PWC, it was reported that:

“Actual debt servicing cost in 2020 stood at N3.27 trillion and represented about 10 percent over the budgeted amount of N2.95 trillion. This puts the debt-to-revenue ratio at approximately 83 percent, nearly double the 46 percent that was budgeted.

“This implies that about N83 out of every N100 the FG earned was used to settle interest payments for outstanding domestic and foreign debts within the reference period. In 2021, the FG plans to spend N3.32 trillion to service its outstanding debt. This is slightly higher than the N2.95 trillion budgeted in 2020”.

According to DMO Nigeria’s total public debt as at December 31, 2020, was N32.915 Trillion.

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