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Nigeria’s Foreign Reserves Dips by $3.43 Billion in 2022

The reserves dipped from $40.52 billion it opened the year to $37.1 billion in 2022.

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U.S Dollar - Investors King

The Nigerian foreign reserves declined by $3.43 billion in 2022, according to the latest report from the Central Bank of Nigeria (CBN). The reserves dipped from $40.52 billion it opened the year to $37.1 billion.

The data analysis shows that the cause of the $3.43 billion loss in Nigeria’s foreign reserves is linked to the persistent intervention of the Central Bank of Nigeria in the official foreign exchange (FX) market in a move to protect the Naira.

However, regardless of the involvement of the Central Bank, the exchange rate at the Importers and Exporters window declined by 5.7% in 2022, while closing the year at N461.5/$1 compared to N435/$1 recorded as of the close of trade in 2021.

Furthermore, the exchange rate at the parallel market declined by 23.1% to an average of N735/$1 in a highly inflationary year that witnessed an alarming increase in exchange value to N900/$1 in November of last year.

The data further indicated that the foreign reserves in 2021 was worth noting that the external reserve rose past $40 billion in 2021 as a result of an influx from the International Monetary Fund (IMF) as well as a $4 billion Eurobond issuance.

Investors King understands that in August 2021, Nigeria received a total amount of $3.35 billion from the International Monetary Fund as part of the Special Drawing Rights (SDRs).

Whereas, a month after, Nigeria also raised a $4 billion Eurobond from the international debt market, which saw the country’s foreign reserves improve from around $36 billion to over $41 billion in November 2022.

However, in 2022  a lack of Foreign Exchange (FX) inflows and increased demand for greenbacks plunged Nigeria’s foreign reserve.

The data which also showed that Foreign Direct Investments (FDI) in Nigeria dwindled significantly since the beginning of the covid-19 pandemic, falling to record levels.

Also, according to data from the National Bureau of Statistics (NBS), Nigeria received $302.13 million as FDI between January and June 2022.

This is significantly lower than pre-pandemic levels. For example, in the same period of 2019, Nigeria recorded an FDI of $429.72 million (2018: $507.96 million).

The shortage of foreign direct investments (FDIs), which has been ascribed as a socioeconomic factor, has also impacted the growth level of the nation’s reserve and by extension the exchange rate.

In the same view, foreign portfolio investment also took a downturn in the past three years, falling to $1.71 billion in the first half of 2022 from $1.77 billion and $4.69 billion recorded in the subsequent quarter of 2021 and 2020.

The World Bank forecast that Nigeria’s diaspora remittance will hit $20.9 billion in 2022, a 7.5% increase from the previous year.

According to the Nigerian Upstream Petroleum Regulatory Commission, Nigeria’s daily crude oil production output increased to 1.41 million barrels in November 2022 and is expected to hit 1.6 million barrels per day in Q1 2023.

Insurance

Heirs Insurance Group Unveils Revolutionary Website for Seamless Insurance Experience

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Heirs Life Assurance- Investors King

Heirs Insurance Group has launched a website designed to revolutionize the insurance experience for its customers.

With a focus on simplicity, accessibility, and personalized service, the new website aims to streamline the process of obtaining insurance coverage and empower customers to make informed decisions about their insurance needs.

The website boasts a range of innovative features that make navigating insurance options easier than ever before.

From simple and intuitive navigation menus to personalized insurance recommendations, the website is designed to guide customers through every step of the insurance process quickly and efficiently.

According to Ifesinachi Okpagu, the Chief Marketing Officer of Heirs Insurance Group, the new website embodies the company’s commitment to delivering exceptional customer service.

“Today’s customers want simplicity, and this new website delivers on that request,” Okpagu said. “We are empowering customers to take control of their lives, their businesses, assets, and their most cherished people.”

One of the key features of the website is its personalized insurance experience, which takes customers through a short journey to help them identify the best insurance plan for their needs.

Whether customers are looking for coverage for their home, car, business, or loved ones, the website provides tailored recommendations to ensure they find the right insurance solution quickly and easily.

With its user-friendly interface and innovative features, the new website from Heirs Insurance Group sets a new standard for the insurance industry, making it easier than ever for customers to protect what matters most to them.

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Banking Sector

Safaricom, Access Holdings Forge Partnership to Revolutionize Remittance Corridor in Africa

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Access bank

Safaricom, the leading telecommunications company in Kenya, has entered into a strategic partnership with Access Holdings, spearheaded by Aigboje Aig-Imoukhuede.

The collaboration aims to revolutionize the remittance corridor between East and West Africa, marking a significant step towards enhancing financial inclusion and empowering millions of individuals across the continent.

The partnership comes on the heels of Access Holdings’ recent acquisition of the National Bank of Kenya Limited, signaling the company’s ambitious expansion into the East African market.

Leveraging Safaricom’s extensive network and expertise in mobile money through M-Pesa, which currently dominates the mobile money market in Kenya, the alliance seeks to create seamless and efficient channels for remittance transactions.

Aigboje Aig-Imoukhuede, the driving force behind Access Holdings, expressed enthusiasm about the collaboration, highlighting its potential to transcend traditional boundaries and foster greater economic connectivity between East and West Africa.

He highlighted the fusion of collective expertise and resources between the two entities, underlining their shared commitment to driving financial inclusion and empowerment across the continent.

The partnership holds promise for addressing the challenges faced by millions of Africans in accessing affordable and reliable remittance services.

By connecting more than 60 million customers and 5 million businesses across eight countries, the collaboration aims to facilitate over $1 billion in daily transaction value, significantly boosting the flow of remittances within and outside Africa.

With the first phase of the collaboration focusing on key markets such as Nigeria, Kenya, Ghana, and Tanzania, stakeholders anticipate a transformative impact on the remittance landscape, paving the way for greater intracontinental trade and economic integration in line with the objectives of initiatives like the African Continental Free Trade Area (AfCFTA).

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Banking Sector

EFCC Urged to Repatriate Recoveries to NDIC for Depositors’ Relief

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The Nigeria Deposit Insurance Corporation (NDIC) has made a fervent plea to the Economic and Financial Crimes Commission (EFCC) to expedite the repatriation of recovered funds to its coffers to facilitate the timely reimbursement of depositors affected by bank failures.

During a recent meeting between the Managing Director of NDIC, Bello Hassan, and the Executive Chairman of the EFCC, Ola Olukoyede, at the NDIC headquarters in Abuja, Hassan stressed the importance of enhanced collaboration between the two agencies in recovering depositors’ funds lost due to bank failures.

Hassan emphasized that the return of recoveries made by the EFCC on behalf of the NDIC would significantly contribute to the prompt reimbursement of affected depositors.

He commended the EFCC for its unwavering efforts in combating corruption and financial crimes, highlighting its crucial role as a key member of the Taskforce on Implementation of the Failed Banks Act chaired by the NDIC.

The NDIC boss also highlighted the existing partnership between the two organizations, which led to the establishment of the NDIC Help Desk at the EFCC in 2022.

He disclosed that several high-profile cases referred to the EFCC were currently under investigation.

In response, Olukoyede reiterated the EFCC’s commitment to collaborating closely with the NDIC to combat financial crimes and safeguard the integrity of the Nigerian banking sector.

He pledged to intensify efforts to repatriate recovered funds promptly, acknowledging the interconnectedness between criminal activities and bank failures.

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