Economy
FG Pegs Exchange Rate at N410.15/$1 for 2022 Budget
By Adedapo Adesanya
The federal government has pegged the exchange rate at N410.15/$1 and the crude oil benchmark at $57 per barrel for the 2022 budget it is planning to submit to the National Assembly for approval.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, confirmed this on Monday at an interactive session organised by the House of Representatives Committee on Finance on the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) in Abuja.
Mrs Ahmed noted that the perception of the naira as being overvalued despite recent adjustment by the Central Bank of Nigeria (CBN) has compounded Nigeria’s risk aversion in the global capital market, which she said would further put pressure on the foreign exchange market, stressing that foreign portfolio investors have yet to return to the Nigerian market.
The Minister stated that while the government plans to borrow to fund the N5.62 trillion deficits in 2022, it will reduce capital expenditure by N259.3 billion, as the reduction would become necessary due to economic volatility occasioned by the unstable global oil market as well as the effects of the COVID-19 pandemic.
She added that for capital expenditure next year, ministries, departments and agencies would get N1.76 trillion as opposed to the N2.02 trillion spent in 2021.
Other key macro-economic assumptions in the MTEF/FSP include a crude oil benchmark crude oil production of 1.88 million barrels per day, an inflation rate of 13 per cent, and a nominal gross domestic product (GDP) of 149.4 trillion.
The Minister noted that interestingly, non-oil GDP continues to grow at 169.7 trillion, compared to oil GDP of 14.7 trillion included in the nominal GDP while nominal consumption is 1.3 trillion.
She said, “The budget deficit and the financing items for the expenditure projected for 2022 is N5.62 trillion, up from N5.60 trillion in 2021.
“The deficit is going to be financed by new foreign and domestic borrowings, both domestic and foreign, in the sum of N4.89 trillion, then privatisation proceeds of N90.73 billion and drawdowns from project titles of N635 billion.
“This amount represents 3.05 per cent of the estimated GDP, which is slightly above the 3 per cent threshold that is spent recommended in the Fiscal Responsibility Act. The revenue that we expect is N6.54 trillion, N2.62 trillion to accrue to the Federation Account and Value Added Tax (VAT), respectively.”
Mrs Ahmed further said the net oil and gas revenue, which would be available for the federation account for distribution, would be N6.151 trillion in 2022.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.04 per cent appreciation on Tuesday, January 14 after the share prices of six stocks on the platform recorded movements.
Business Post reports that the bourse ended with four price gainers and two price losers during the session trading session of the week.
FrieslandCampina Wamco Nigeria Plc lost N2.50 yesterday to finish at N39.50 per share versus the previous day’s N42.00 per share and Central Securities Clearing System (CSCS) Plc dropped N1.15 to wrap up the day at N22.05 per unit compared to Monday’s N23.20 per unit.
On the flip side, 11 Plc gained N25.53 to close at N280.84 per share versus N255.31 per share, UBN Property Plc increased by 20 Kobo to N2.20 per unit from N2.00 per unit, Industrial and General Insurance (IGI) Plc added 10 Kobo to close at N16.20 per share compared with the previous day’s N16.30 per share, and Geo-Fluids Plc gained 10 Kobo to settle at N4.66 per unit versus N4.56 per unit.
When trading activities ended for the day, the market capitalisation went up by N410 million to remain relatively unchanged at N1.061 trillion as the NASD Unlisted Security Index (NSI) inflated by 1.19 points to 3,096.19 points from 3,095.00 points.
The volume of securities traded in the session was up by 28.4 per cent during the session to 3.97 million units from 3.1 million units, the value of shares jumped by 161.8 per cent to N8.3 million from N3.2 million, and the number of deals declined by 16.7 per cent to 25 deals from 30 deals.
FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 3.4 million units worth N134.9 million, Geo-Fluids Plc occupied the second spot with 8.9 million units valued at N43.0 million, and the third position claimed by Afriland Properties Plc with 690,825 units sold for N11.1 million.
IGI Plc ended the session as the most active stock by volume (year-to-date) with a turnover of 23.5 million units valued at N5.3 million, followed by Geo-Fluids Plc with 8.9 million units sold for N43.0 million, and FrieslandCampina Wamco Nigeria Plc with 3.4 million units worth N134.9 million.
By Aduragbemi Omiyale
A pioneering agricultural solutions provider based in Kaduna, Nigeria, NaFarm Foods, has been named as the winner of the food category of the 2025 Zayed Sustainability Prize for its Hybrid Solar Food Dryer.
The company clinched the accolade for its groundbreaking innovation in reducing post-harvest losses, improving food security, and promoting sustainable agricultural practices across Nigeria.
Hybrid Solar Food Dryer was designed by NaFarm Foods to address the critical issue of food spoilage by combining solar heat and electricity generated from solar panels for efficient, all-weather drying of food, even during rainy or cloudy days.
With a capacity of 500kg per unit and the ability to retain the nutritional quality of food while minimising energy costs, the technology has already benefited over 80 communities across six Nigerian states.
By reducing post-harvest losses for over 65,000 farmers, the dryers contribute significantly to food security and rural economic empowerment.
The Hybrid Solar Food Dryer is transforming food preservation by reducing spoilage rates, decreasing greenhouse gas emissions from decomposing food, and lowering reliance on fossil fuels.
With a whole-of-life cost of less than 1 cent per 100 litres, the dryers are accessible and economically viable for smallholder farmers and food processors.
By 2030, NaFarm Foods aims to empower two million farmers and reduce carbon emissions by 50,000 metric tonnes annually.
Business Post reports that NaFarms Foods has won $1 million from Zayed to scale its operations by manufacturing and distributing 100,000 dryers across Nigeria and West Africa.
“We are deeply honoured to be recognised as a winner of the Zayed Sustainability Prize. It signifies global recognition of our efforts to tackle food insecurity and promote equitable and sustainable agriculture in Nigeria and beyond.
“This opportunity inspires us to continue pushing boundaries, knowing that our work is not only transforming lives locally but also contributing to a more sustainable and equitable world. For us, this is more than an achievement; it’s a call to action to drive greater impact,” the chief executive of NaFarms Foods, Ms Fatima Jimoh, said.
The Director of the Zayed Sustainability Prize, Dr Lamya Fawwaz, said, “NaFarm Foods’ innovative approach to sustainable food preservation not only improves food security but also empowers rural communities, particularly women and youth, by creating income-generating opportunities. This aligns with the Prize’s mission to drive progress and improve livelihoods.”
NaFarm Foods plans to expand training programmes to empower an additional 25,000 women and youth, fostering entrepreneurship and sustainable economic growth.
Additionally, it intends to establish distribution hubs and implement advanced cluster mapping systems to ensure technology accessibility and improved marketability of produce.
Each year, the Zayed Sustainability Prize rewards organisations and high schools for their groundbreaking solutions, fostering innovation on global challenges. Over the past 17 years, through its 128 winners, the prize has positively impacted 407 million lives worldwide.
By Adedapo Adesanya
The Naira depreciated against the United States Dollar for the third straight session by 0.05 per cent or N1.36 in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, January 14.
During the second trading day of the week, the exchange rate closed at N1,549.65/$1 in the official market, in contrast to Monday’s closing price of N1,548.89/$1.
The renewed pressure on the Naira occurred as analysts expected the introduction of the electronic matching FX market system, increasing foreign portfolio inflows, greater access to dollar-denominated debt, rising FX reserves, and a positive current account balance to support the domestic currency in 2025.
Investment banking firm, CardinalStone Securities Limited, said the Naira movement, which has contributed about 20.0 per cent – 30.0 per cent to inflation in the last few years, is likely to be relatively stable in 2025.
Also in the spot market, the local currency weakened against the Pound Sterling yesterday by N2.22 to trade at N1,879.64/£1 compared with the preceding day’s N1,877.42/£1 and against the Euro, the Nigerian currency lost N7.17 to quote at N1,586.05/€1 versus the N1,578.87/€1 it was traded a day earlier.
However, in the black market, the Naira appreciated against the greenback during the session by N5 to finish at N1,650/$1 compared with the previous day’s value of N1,655/$1.
In the cryptocurrency market, the bulls took charge of reports that US President-elect Donald Trump is preparing first-day executive orders that will benefit the crypto industry. The advance continued today, supported by softer-than-expected US Producer Price Index (PPI) readings for December.
Mr Trump’s expected crypto policies and broader economic plans have brought back positive sentiment among traders — bumping up crypto prices.
Ripple (XRP) added 12.1 per cent to its value to close at $2.84, Cardano jumped by 6.8 per cent to trade at $1.02, Dogecoin (DOGE) rose by 5.0 per cent to $0.3589, Litecoin (LTC) grew by 3.2 per cent to $101.80, Bitcoin (BTC) expanded by 2.2 per cent to $96,866.89, Binance Coin (BNB) appreciated by 1.5 per cent to $699.45, Solana (SOL) also gained 1.5 per cent to end at $188.57, and Ethereum (ETH) improved by 1.3 per cent to $3,219.28, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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