Here is New Telegraph’s weekly business news roundup of the top 15 latest Nigerian news making headlines from Monday, January 22 to Saturday, January 27, 2024.
The Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has announced that fuel pump prices in Nigeria are expected to moderate this year as both government and private-owned refineries begin operation. This statement was made during the launch of the Nigerian Economic Summit Group (NESG) 2024 Macroeconomic Outlook Report in Lagos.
Cardoso stated that the anticipated stabilisation or reduction in fuel costs would have a positive impact on the economy and help alleviate the burden on consumers. He emphasized the importance of refining crude oil within the country to reduce dependence on imports and mitigate the volatility of international fuel prices.
In other news, the Global Search Machine has revealed plans to launch a new platform in 2014. The company aims to enhance the search experience by providing users with various means of searching for information on their platforms. This development is expected to improve user accessibility and convenience.
Meanwhile, King Mohammed VI of Morocco has extended an invitation to President Bola Tinubu to visit Morocco. The invitation was conveyed during a phone call between the two leaders, with discussions focusing on the African-Atlantic Gas Pipeline. This move highlights the growing bilateral relations between Nigeria and Morocco and paves the way for future collaborations in the energy sector.
Guinness Nigeria Plc recently released its unaudited Q2-2024 results, which indicated a stand-alone loss per share of N3.57. This significant decline in earnings can be attributed to a substantial increase in net finance costs. Despite this setback, Guinness recorded a 26.6% year-on-year increase in revenue during the second quarter, which contributed to a positive performance for the first half of the year.
The Nigerian equities market sustained its bullish trend, with the NGX All-Share index closing 0.57% stronger. The positive performance was driven by buy interests in select stocks such as SE-PLAT, ZE-NITHBANK, and GTCO. This development further solidifies the market’s trajectory for another week of gains, with the year-to-date return rising to 36.61%.
On the currency front, the naira continued its downward slide on the parallel market, reaching a new record low of N1,412 per dollar. This fall is attributed to increased dollar demand since the beginning of the year, driven by businesses and individuals seeking foreign exchange for raw material imports and overseas payments. The naira also weakened against the dollar on the official Investors and Exporters (I&E) window.
In a bid to transition to cleaner and renewable energy sources, Nigeria plans to spend $3.1 trillion. The Minister of State for Petroleum Resources, Dr. Heineken Lokpobiri, disclosed that the country has budgeted $1.9 trillion for its energy transition plan, with an additional $1.2 trillion expected from external sources. This move reflects Nigeria’s commitment to reducing its dependence on fossil fuels and embracing sustainable energy alternatives.
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has secured a N1 billion funding agreement for small businesses in Katsina state. The fund, which will be disbursed in stages, aims to support the growth and development of small enterprises in the state. This initiative highlights the government’s efforts to empower local entrepreneurs and stimulate economic activities.
Investors in the Nigerian Exchange are experiencing a major economic boom, with unprecedented capital gains and the expectation of significant dividends. This positive trend aligns with President Bola Tinubu’s promise of prosperity during his campaign. The growing wealth creation in the stock market is paving the way for economic advancement and improved livelihoods for Nigerians.
The Nigeria Customs Service (NCS) reported a total export value of N596.5 billion ($701.8 million) for 2023 at the Lilypond Export Terminal in Lagos. This figure represents 688,097 metric tonnes of export goods with Free-On-Board (FOB) worth. Additionally, the service collected a surcharge of N97.2 million based on the 2.5% levy on previously imported goods. These numbers indicate a significant contribution to Nigeria’s export sector.
Nigeria ranks lowest globally in terms of access to electricity, with approximately 92 million people lacking power out of the country’s population of 200 million. This lack of access to electricity poses challenges to households and increases the financial burden for families. The government needs to address this issue and improve electricity infrastructure to enhance the quality of life and drive economic growth.
Apple has seen exceptional growth in brand value this year, experiencing a $219 billion increase (74%) to $517 billion. This surge in brand value has propelled Apple back to its position as the world’s most valuable brand. The company’s continuous innovation and strong brand reputation have contributed to its remarkable success.
Nigeria has started the year with a relatively low shipment of liquefied natural gas (LNG), exporting 226,000 tonnes valued at N103 billion ($120 million) from Onne Port to destinations including Kuwait. The country aims to meet the growing demand for LNG in Europe by exporting over one million tonnes monthly. This development positions Nigeria as a significant player in the global LNG market.
The completion of the Dangote refinery will significantly impact fuel production in Nigeria, with an expected capacity of 12 million tonnes per year. This output surpasses the combined imports of Netherlands and Belgium in 2023, highlighting the refinery’s major contribution to both domestic and international fuel supply. European refineries may face increased competition as the Dangote refinery becomes fully operational.
Engineer Shina Amoo, the Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) NNPC Depot, Ore Western Zone, has urged the management of Dangote Petroleum Refinery to include IPMAN members in the distribution of petroleum products from the plant. This call for inclusion follows reports of major oil marketers seeking involvement in the distribution process. Collaboration between Dangote Petroleum Refinery and IPMAN would benefit the petroleum industry and ensure a more efficient distribution network.
In conclusion, the latest business news roundup highlights various developments in Nigeria, including the expectation of fuel price moderation, the Global Search Machine’s upcoming platform, and King Mohammed VI of Morocco’s invitation to President Bola Tinubu. Additionally, financial reports from Guinness Nigeria Plc, the positive performance of the Nigerian equities market, and the continuous slide of the naira against the dollar have significant implications for the country’s economy. Furthermore, Nigeria’s commitment to renewable energy, funding support for small businesses, the economic boom at the Nigerian Exchange, and challenges in the electricity sector shape the business landscape. Lastly, news from Apple, Nigeria’s LNG exports, the impact of the Dangote refinery, and IPMAN’s call for inclusion in distribution activities contribute to the broader business narrative in the country.
