Economy
NACCIMA Laments Rise in Public Sector Borrowing from Local Banks
By Adedapo Adesanya
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has expressed concerns over the high rate of public sector borrowing from domestic banking institutions.
In a letter made public recently, the group called on both the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, and the Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, to look into the government’s involvement in the banking sector.
It said this had resulted in a crowding-out effect, whereby private sector entities are currently “facing exorbitant barriers to accessing finance, which in turn stifles their capacity for growth and contribution to the national economy”.
The association further noted that over-subscription of government debt instruments, at rates that eclipse the 21 per cent mark for treasury bills and even loftier premiums for state bonds, was “reflective of an economic milieu in urgent need of recalibration and judicious policy intervention”.
NACCIMA pointed out that while it acknowledged the challenges inherited by the current administration, “We also believe that opportunities exist for Nigeria to explore new ways of addressing the challenges of the current global economic climate”.
It stated that the current inflationary impact on Nigerians’ economic stability and purchasing power called for robust and multifaceted policy responses.
The group commended the efforts of the Finance Ministry as well as the strides of the CBN to mitigate inflationary pressures but noted that “this must be underscored by a synergistic approach where monetary policy is buttressed by prudent fiscal mandates.”
“The CBN, in strategic alignment with the Ministry of Finance, must architect a cohesive blueprint to minimize the inflationary effect of monthly FAAC allocations and the insatiable borrowing appetite of the public sector.
“Such a regime would release significant capital within the banking system, thus enabling more optimal allocation of resources and extension of credit to private enterprises at more competitive rates for entrepreneurial innovation and investment,” it further stated.
NACCIMA recommended that the CBN consider multiple tools in addition to the Monetary Policy Rate (MPR) and Cash Reserve Ratio (CRR) to manage the inflationary effect arising from increased FAAC allocations, adding that zero coupon stabilisation bonds and vouchers could be issued for FAAC allocations instead of cash.
The association said public and private sector liquidity management should be addressed on a sectoral basis and called for the establishment of a robust forward pricing exchange rate mechanism to facilitate investment planning, stability and long-term economic prosperity.
It further recommended sectoral limits on public sector borrowing and bond issuance as well as public sector debt repayments from excess FAAC allocations to free up funds for the real sector.
It added that a public sector debt redemption programme will result in interest rate reduction as well as reduce aggregate borrowing costs for the government.
NACCIMA also called for the opening of a two-year window for corporate bond refinancing programme to enable refinancing of corporate borrowings at a lower rate.
It added that the customs duty exchange rate dilemma could be addressed by recognising Naira as the de facto national currency, stressing that customs duty should be charged as a percentage of the Naira value used to open a Form M.
Economy
BNB Price Reflects Changing Dynamics in the Digital Asset Market
Economy
NASD Unlisted Security Index Crosses 4,000-point Benchmark Again
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange achieved a milestone on Friday, April 24, 2026, after five securities on the platform helped with a 1.85 per cent growth.
Data showed that the NASD Unlisted Security Index (NSI) again crossed the 4,000-point benchmark yesterday.
The index chalked up 73.64 points during the trading day to close at 4,052.59 points compared with the preceding session’s 3,978.95 points, while the market capitalisation added N5.38 billion to finish at N2.424 trillion versus Thursday’s closing value of N2.380 trillion.
The price gainers were led by Okitipupa Plc, which grew by N25.00 to sell at N305.00 per share compared with the previous price of N280.00 per share. Central Securities Clearing System (CSCS) Plc gained N6.92 to close at N76.26 per unit versus N69.34 per unit, Afriland Properties Plc appreciated by N1.00 to N17.00 per share from N18.00 per share, FrieslandCampina Wamco Nigeria Plc improved by 55 Kobo to N99.55 per unit from N99.00 per unit, and Food Concepts Plc increased by 5 Kobo to N2.70 per share from N2.65 per share.
However, there was a price loser, MRS Oil, which dipped by N21.75 to N195.75 per unit from N217.50 per unit.
During the final session of the week, the value of securities jumped 75.2 per cent to N41.3 million from N23.6 million units, and the number of deals expanded by 62.9 per cent to 44 deals from 27 deals, while the volume of securities declined marginally by 0.9 per cent to 447,403 units from 451,522 units.
At the close of trades, Great Nigeria Insurance (GNI) Plc was the most traded stock by volume (year-to-date) with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
GNI was also the most active stock by value (year-to-date) with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 59.6 million units transacted for N4.0 billion, and Okitipupa Plc with 27.8 million units exchanged for N1.9 billion.
Economy
Naira Slips to N1,358/$1 as FX Reserves, Policy Uncertainty Concerns
By Adedapo Adesanya
It was not a good day for the Nigerian Naira in the currency market on Friday, April 24, as its value depreciated against the major foreign currencies at the close of transactions.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX), it lost N4.53 or 0.33 per cent against the United States Dollar yesterday to trade at N1,358.44/$1, in contrast to the N1,353.91/$1 it was exchanged on Thursday.
Equally, the domestic currency slipped against the Pound Sterling in the official market during the session by N8.14 to close at N1,834.02/£1, compared with the previous rate of N1,825.88/£1 and dropped N8.01 against the Euro to sell at N1,590.73/€1 versus N1,582.72/€1.
Also, the Naira depreciated against the US Dollar at the GTBank FX desk on Friday by N4 to quote at N1,370/$1 compared with the previous session’s N1,366/$1, and at the parallel market, it depleted by N5 to settle at N1,380/$1 versus the preceding day’s N1,375/$1.
Data published by the Central Bank of Nigeria (CBN) indicated that NFEM interbank turnover surged to N43.562 million across 68 deals, up from N28.117 million the previous day.
Despite the CBN’s reassurance that the recent drop in external reserves is not worrisome, the market remains unsettled by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market as gross reserves continue to decline to $48.4 billion.
The outlook for the Dollar appears supported by broader macro risks, including elevated oil prices tied to the tanker traffic disruptions in the Strait of Hormuz and a continued US-Iran standoff over ceasefire negotiations.
A look at the digital currency market showed that investors are sitting on the edge as the US Dollar rebounded amid geopolitical and inflation risks despite continued inflows into US spot bitcoin Exchange Traded Funds (ETFs).
Solana (SOL) rose by 1.2 per cent to sell $86.45, Cardano (ADA) appreciated by 1.1 per cent to $0.2517, Dogecoin (DOGE) grew by 0.9 per cent to $0.0989, Ripple (XRP) improved by 0.3 per cent to $1.43, Ethereum (ETH) soared by 0.2 per cent to $2,316.83, and Binance Coin (BNB) chalked up 0.1 per cent to sell for $637.44.
However, TRON (TRX) depreciated by 1.3 per cent to $0.3235, and Bitcoin (BTC) lost 0.2 per cent to close at $77,562.27, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
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