Connect with us

Economy

Nigeria Pays N1.6trn to Service Debts in Six Months

Published

on

domestic debt servicing

By Adedapo Adesanya

The federal government expended the sum of N1.6 trillion on debt servicing in the first six months of the year, according to Mr Clement Agba, the Minister of State for Budget and National Planning.

The Special Assistant to the Minister on Media, Mr Ojeifo Sufuyan, noted that also, the sum of N1.61 trillion was used on personnel cost, including pensions from January through June.

He further said as of the end of June 2020, only N444.8 billion out of the N9.9 trillion appropriated for the year, had been released for capital expenditure, largely due to the budget revision exercise.

However, he disclosed that the figure hit N1 trillion in the seventh month of the year.

Nigeria’s debt service to revenue ratio is 99 per cent due to the headwinds of the coronavirus pandemic which further worsened the country’s debt servicing eroding other plans for capital projects and infrastructural growth.

The minister said, “Crude oil prices declined sharply in the world market, with Bonny Light crude oil price dropping from a peak of $72.2 per barrel on January 7, 2020, to below $20 per barrel in April 2020.

“In effect, the $57 crude oil price benchmark on which the 2020 budget was based became unsustainable.

“Another key development in the international crude oil market is the massive output cut by OPEC and its allies (OPEC+) to stabilise the world oil market, with Nigeria contributing about 300,000 barrels per day of production cuts.”

Mr Agba added that, “The impact of these developments is about 65 per cent decline in projected net 2020 government revenues from the oil and gas sector, with adverse consequences for foreign exchange inflows into the economy.”

With 55.7 per cent of Nigerians either unemployed or underemployed, this will further pose a problem with plans to address revenue shortage and drive growth across key may prove hard to implement.

Combined with inflation at 12.82 per cent and a recession looming, analysts note that the next six months will be bleak.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Click to comment

Leave a Reply

Economy

Customs Street Rises 0.65% as Investors Smile After N427bn Gain

Published

on

Customs Street Nigerian Stock Exchange

By Dipo Olowookere

The major performance indicator of the Nigerian Exchange (NGX) Limited, the All-Share Index (ASI), rebounded on Tuesday after it slipped a day earlier.

The benchmark index appreciated by 0.65 per cent or 683.65 points during the session to settle at 106,574.98 points compared with the previous day’s 105,891.33 points.

As for the market capitalisation, it maintained its upward movement with a 0.65 per cent or N427 billion growth to close at N66.496 trillion, in contrast to the preceding day’s N66.069 trillion.

Data obtained by Business Post showed that the industrial goods space improved by 2.40 per cent, the banking index gained 0.44 per cent, and the insurance counter soared by 0.19 per cent, while the consumer goods sector fell by 0.52 per cent, with the energy industry depreciating by 0.02 per cent.

Investor sentiment remained strong after the bourse closed with 40 price advancers and 25 price laggards, indicating a positive market breadth index.

Ellah Lakes jumped by 10.00 per cent to N3.63, Honeywell Flour surged by 9.93 per cent to N11.51, Eterna expanded by 9.93 per cent to N44.30, Academy Press improved by 9.70 per cent to N3.28, and Ikeja Hotel advanced by 9.31 per cent to N13.50.

However, International Energy Insurance declined by 9.78 per cent to N2.03, Eunisell crumbled by 9.74 per cent to N12.05, Sovereign Trust Insurance crashed by 9.02 per cent to N1.21, Guinea Insurance tumbled by 5.88 per cent to 80 Kobo, and Neimeth dipped by 5.03 per cent to N3.21.

The market participants bought and sold 478.6 million equities worth N11.8 billion in 15,561 deals yesterday versus the 567.3 million equities valued at N10.4 billion traded in 17,843 deals on Monday, representing a growth in the trading value by 13.46 per cent, and a decline in the trading volume and number of deals by 15.64 per cent and 12.79 per cent apiece.

Access Holdings topped the activity chart on Customs Street on Tuesday with 38.7 million shares sold for N1.1 billion, Transcorp transacted 35.2 million stocks worth N2.1 billion, Veritas Kapital exchanged 26.0 million equities for N30.6 million, AIICO Insurance 21.4 million stocks valued at N37.1 million, and Zenith Bank traded 20.8 million shares worth N1.1 billion.

Continue Reading

Economy

Raenest Receives $11m to Boost Cross-Border Transactions

Published

on

Raenest

By Adedapo Adesanya

Global multi-currency accounts platform, Raenest, has secured $11 million Series A investment as it plans to expand its cross-border money management for Africans.

The round was led by QED Investors, with participation from Norrsken22, alongside follow-on investment from Ventures Platform, P1 Ventures, and Seedstars. This equity-based capital injection brings Raenest’s total venture funding to $14.3 million.

The company will aim to deepen its operations in Nigeria, while also strengthening its Kenyan presence. The company also plans to enter the United States and Egypt this year, broadening its impact with Africans within the continent and outside the continent, and also attract top talent to support its growth.

According to a statement shared with Business Post, Raenest is set to expand its reach and strengthen its role in the growing cross-border payments industry, which is projected to reach $320 trillion by 2032.

“Africa remains one of the fastest-growing regions for global transactions. With the backing of global and early-stage investors, Raenest is well-positioned to deliver fast, transparent, and affordable financial tools that simplify cross-border money management.

“By scaling its infrastructure, deepening partnerships with global financial institutions and enhancing its multi-currency offerings, Raenest is enabling more African businesses and individuals to participate fully in the global economy,” the statement added.

Raenest holds licenses in Nigeria as an approved International Money Transfer Operator (IMTO) and in Canada as a Money Services Business (MSB) and is working to secure additional licenses in key jurisdictions.

The company will be banking on its strategic partnerships with leading banks in the US and UK, to ensure operational stability and reliability, and plans to use the funding to form additional collaborations with financial institutions worldwide.

The startup which was founded in 2022 by Mr Victor Alade, Mr Sodruldeen Mustapha, and Mr Richard Oyome, initially operated as an Employer of Record (EOR) before evolving into a platform that redefines global banking for Africans, helping businesses and freelancers receive international payments, convert between currencies, operate a multi-currency wallet, while managing transactions seamlessly.

The company claims it amassed over 700,000 individual customers, processed over $1 billion in payments, and currently serves over 300 businesses, including MoniePoint, Helium Health, Fez Delivery, and Matta.

Also, Raenest offers a consumer-focused product, Geegpay, which provides Africa’s gig economy, particularly freelancers, creators, remote workers, and solopreneurs, with efficient solutions for receiving payments from Upwork, Fiverr, Gusto, as well as other overseas platforms and clients while minimising fees.

Speaking on the announcement, Mr Alade, CEO of Raenest, said: “At Raenest, we are dedicated to addressing the barriers that hinder Africans from accessing seamless financial services. Our journey over the past two years has been shaped by innovation, collaboration, and a shared vision to build a sustainable, globally impactful business that bridges economic and digital divides.

“This funding, supported by new and existing investors who share our mission, provides the momentum to scale our solutions and expand our impact across the continent. We are excited to continue building solutions that connect Africa to the world and drive inclusive growth and prosperity.”

On his part, Mr Gbenga Ajayi, Partner and Head of Africa and the Middle East at QED Investors, added: “At QED, we’re thrilled to support Raenest as they redefine cross-border banking for Africans. Their commitment to financial inclusion, combined with a seamless user experience, positions Raenest as a game-changer in the region’s fintech landscape.

“We firmly believe that by bridging the gap between local and global markets, Raenest will unlock new opportunities for African entrepreneurs, freelancers and businesses, ultimately driving greater economic empowerment across the continent.”

Adding her bit, Ms Lexi Novitske, General Partner of Norrsken22, “Africa’s gig economy is growing at an impressive 20 per cent year-on-year, yet cross-border payment challenges persist for workers and businesses alike.

“Our investment in Raenest reflects our belief that they are unlocking new opportunities by transforming how Africa’s global workforce connects to the world economy.”

For Mr Kola Aina, Founder and General Partner at Ventures Platform, he emphasised their continued support saying, “As one of Raenest’s earliest backers, we have witnessed their exceptional growth, their consistent delivery of quality and reliable services to customers, and their ability to deliver meaningful impact in the financial services sector. Raenest’s unwavering commitment to Africa’s gig economy and businesses is evident at every stage of their journey, and we are thrilled to see them continue to scale while staying true to their bold vision.”

Continue Reading

Economy

Dangote Eyes 100% Refining Capacity in 30 Days

Published

on

dangote First Crude Supply

By Adedapo Adesanya

Dangote Oil Refinery is on track to achieve full operational capacity within the next 30 days, according to Mr Edwin Devakumar, Dangote Group’s Vice President for Oil and Gas.

The 650,000-barrel-per-day facility, built by Nigerian billionaire, Mr Aliko Dangote, in Lagos, began processing crude into diesel, naphtha, and jet fuel in January 2024 and started refining petrol last September.

Currently operating at 85 per cent capacity, the refinery is poised to scale up.

“We can go 100 per cent in 30 days,” Mr Devakumar stated on Monday.

Despite an agreement with the Nigerian government to purchase crude in Naira from the Nigerian National Petroleum Company (NNPC) Limited, the refinery struggled last year to secure adequate local supply, leading it to import crude.

In response, the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), the oil regulator, has mandated that local oil producers supply 550,000 barrels per day to the refinery between January and June, warning that export permits would be blocked for producers failing to meet quotas.

Meanwhile, Dangote Refinery is actively exploring global markets for its refined products.

Mr Dangote recently revealed that the refinery had dispatched two cargoes of jet fuel to Saudi Aramco as part of its expansion strategy.

“We are looking at all the markets right now,” Mr Devakumar confirmed.

Despite these developments, the refinery still faces challenges distributing the products at home with local fuel traders and even the NNPC importing refined products.

Continue Reading

Trending