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Economy

MPC Urges FG to Quickly Implement 2017 Budget

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By Modupe Gbadeyanka

Federal Government has been advised to ensure the prompt implementation of the 2017 appropriation bill recently passed by the National Assembly.

This suggestion was given by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), which held its quarterly meeting this week.

In a communiqué released after the meeting, the committee noted that the Nigerian economy has shown greater resilience in the intervening period since its last meeting.

It said to sustain the economic growth being experienced lately; the Federal Government must “expeditiously commence the implementation of the recently approved 2017 budget.”

The MPC emphasised that the implementation of the 2017 appropriation bill, especially, the capital expenditure portion, will help “sustain the momentum of recovery, engender employment and restore confidence in the Nigerian economy.”

The committee attributed the gradual recovery of the country’s economy to attention given to macroeconomic policies as well as improvements in oil prices.

It said, “While the general economic outlook seems cautiously optimistic for the remainder of fiscal 2017, emerging indicators suggest that economic policy must remain circumspect.

The committee noted data from the National Bureau of Statistics (NBS) showed that the economy contracted marginally by 0.52 percent in Q1 2017, a much more positive development since Q1 2016.

It added that the data also shows that about 18 economic activities recorded positive growth in Q1 2017; indicating that the economy was firmly on the path of recovery.

The key growth activities were led by quarrying (52.54%), metal ores (40.79%), road transportation (12.35%), water supply and sewage (12.63%), fishing (5.49%), crop production (3.5%), oil refining 93.01%), motion pictures (2.95%), telecommunication (2.89%), forestry (2.59%), amongst others. The Committee noted the positive effects of improved foreign exchange management on the performance of the manufacturing sector and other economic activities. The non-oil sector grew by 0.72 percent in Q1 2017, largely reflecting the growth recorded in agriculture and solid minerals, and recovery in manufacturing, construction and services sectors.

President Muhammadu Buhari, who is supposed to sign the 2017 budget, is presently away in London on a medical trip, but before he left Nigeria, he transmitted power to his Vice, Mr Yemi Osinbajo.

But his letter to the National Assembly explained that Mr Osinbajo would coordinate affairs of the nation, which raised eyebrows.

Later, there were issues on who will sign the 2017 budget, which was passed by the National Assembly after Mr Buhari travelled to London.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Economy

Dangote Packaging Explores Polypropylene Bag Exports to African Markets

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Dangote Packaging

By Modupe Gbadeyanka

Following a production capacity boost facilitated by new machinery being commissioned in the two manufacturing plants, Dangote Packaging Limited (DPL) is planning to expand into the African export market.

With its production now up to 52 million polypropylene bags per month from 36 million, the management is exploring pushing the excess to other African markets to boost the Nigerian economy, particularly for foreign exchange (FX) earnings.

“With the current increase in production capacity, DPL is ready to explore markets across West, Central, and Southern Africa.

“Once domestic demand is met, it is only logical to channel our surplus to new territories. To this end, we have engaged an export team to lead the charge,” the chairman of the company’s board, Mr Robert Ade-Odiachi, said during a strategic board meeting held last Wednesday.

According to him, the entry into export markets will be backed by world-class standards, also hinting at the possibility of offering trade concessions to fast-track market penetration in target export regions.

“We are equipped with state-of-the-art machinery, skilled manpower, and robust systems. Our product quality is unmatched, and our pricing remains competitive,” he added.

DPL’s expansion is part of a wider strategic alignment with the growing demands of the Dangote Group’s industrial portfolio. The increase in production is expected to support the Group’s internal supply chain while also positioning DPL as a regional packaging powerhouse.

“With our refinery and petrochemical plants now supplying key raw materials, we have achieved self-sufficiency, further reinforcing our long-term growth prospects,” Mr Ade-Odiachi said.

Also speaking at the meeting, Dangote Group Treasurer and DPL Board Member, Mr Mustapha Matawalle, stressed the economic benefits of the expansion.

“This is not just about market dominance and revenue generation,” he said. “It’s also about creating jobs and boosting Nigeria’s foreign exchange earnings through export activity,” he stated, lauding DPL’s commitment to Health, Safety, Security, and Environmental (HSSE) standards, noting that operations remain fully compliant with regulatory expectations.

The company’s new push follows the commissioning of advanced machinery in April, an event where DPL Managing Director, Mr Sai Prakash, described the equipment as cutting-edge and pivotal to enhanced productivity and product quality.

“With our rapidly expanding capabilities, stepping into the African market is a natural and timely progression,” Mr Sai Prakash said.

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Economy

Retail vs. Institutional Forex Trading: What Nigerian Traders Need to Know

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retail Forex Trading

Most traders in Nigeria are retail traders. They use personal money and trade on online platforms. Understanding how retail trading compares to institutional trading helps new traders make better choices. Knowing the differences also helps traders set realistic goals and avoid common traps. Retail traders do not have the same power, tools, or market influence as institutions, but they can still grow their accounts with smart choices and consistent habits. This article will explain the key differences and how Nigerian retail traders can succeed by focusing on skill, discipline, and risk control.

What Is Retail Forex Trading?

Retail traders trade with their own money, usually in small amounts. They use mobile apps or desktop platforms like MetaTrader to buy and sell financial instruments. Retail trading is open to anyone with internet access and a small deposit, which makes it popular in Nigeria. However, retail traders usually have limited access to financial data, trading tools, and fast execution speeds.

What Is Institutional Trading?

Institutional trading is carried out by banks, hedge funds, and large financial firms. These institutions trade large volumes of money and have direct access to liquidity providers. They use advanced tools, private data feeds, and faster order execution. Their trading decisions are often based on deep market analysis and are supported by teams of professionals.

Key Differences Between Retail and Institutional Trading

  1. Capital: Institutions manage millions or even billions in assets. In contrast, retail traders often begin with as little as $100 or $1,000. The amount of capital affects how trades are placed and how much risk is taken.
  2. Tools and Access: Institutional traders use advanced trading software, direct market access, and exclusive data sources. Retail traders work with public platforms and slower data, which can limit their reaction time.
  3. Market Impact: Institutional traders place large orders that can influence price movement. Retail traders do not affect market direction due to the smaller size of their trades.
  4. Costs: Institutions pay lower fees and spreads because they trade in bulk. Retail traders usually face higher costs per trade, including wider spreads and commissions.

Can Retail FX Traders Succeed?

Yes, retail traders can succeed if they follow a clear plan and manage risk properly. Many individuals in Nigeria have turned small accounts into meaningful profits by being consistent and disciplined. They focus on learning, testing strategies, and avoiding emotional decisions. You can read about successful forex traders from Nigeria.

Tips for Retail Traders in Nigeria

Retail traders in Nigeria should focus on using a simple strategy that they understand clearly. They should risk only a small amount of their capital on each trade to avoid large losses. It is important to trade without emotion and to treat each trade as a learning opportunity to improve future decisions. Keeping a trading journal can also help track progress and find patterns in both success and failure.

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Economy

SEC to Discuss Unregistered Investment Schemes at First CMC Meeting of 2025

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CMC Meeting

By Aduragbemi Omiyale

The first Capital Market Committee (CMC) meeting of 2025 in Nigeria will take place on Monday, May 19, the Securities and Exchange Commission (SEC) has confirmed.

One of the major issues to be discussed at the gathering is the activities of unregistered investment schemes in the country.

This is coming a few weeks after many Nigerians fell victims of a popular Ponzi scheme, Crypto Bridge Exchange (CBEX).

It was speculated that the organisation went away with funds belonging to Nigerian investors worth about $1 billion. Victims could not withdraw their money from their wallets with the platform.

At the CMC meeting taking place less than two weeks’ time, the capital market regulator will explore ways to better inform Nigerians on available authorised capital market products.

“The meeting will focus on critical issues affecting the market and ensure that those concerns are thoroughly addressed.

“Participants will also deliberate on the activities of unregistered investment schemes and explore ways to better inform Nigerians on available capital market products,” parts of the notice from SEC read.

In addition, the committee will deliberate on the implementation of the Investments and Securities Act 2025, recently signed by President Bola Tinubu.

Further, participants will brainstorm on strategies to drive capital market growth in line with Mr Tinubu’s Renewed Hope Agenda.

Also, the meeting will review the market’s current regulatory landscape and develop strategies to attract investments, improve market efficiency, and protect investors.

The team will, equally, examine reports from technical committees, market infrastructures, and industry observers to guide discussions on emerging market trends and regulatory reforms.

Business Post reports that expected at the CMC meeting are capital market operators, trade groups, investment advisers, fund and portfolio managers, and custodians.

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