Surging inflation driving 7 million Nigerians into poverty, the World Bank says
Nigeria’s surging inflation rate has pushed 7 million Nigerians into poverty, the World Bank said in its latest Nigeria Development Update report. According to the report, before inflation started rising steadily, there were 82.9 million poor Nigerians but the number has risen to 90.1 million as a result of the price shock. The pandemic has also exacerbated the food crisis in the country. The Bank estimated that about 18 percent of adults did not eat for an entire day compared to 6 percent recorded before Covid. From the report, 11 million more Nigerians are expected to fall into poverty between 2020 and 2022 due to Covid-19. The Bank has projected an economic growth of 1.8 percent this year compared to a previous estimate of 1.2 percent if it deepens reforms.
World Bank, AU to deploy vaccines for 400m Africans
The World Bank and the African Union’s Covid-19 Africa Vaccine Acquisition Task Team (AVATT) have signed an agreement to deploy vaccines for 400 million Africans. This is sequel to a meeting World Bank President David Malpass and his senior management team comprised of Axel van Trotsenburg and Makhtar Diop had with the African Union’s COVID-19 Vaccine Acquisition Task Team (AVATT) to discuss modalities for a partnership that will accelerate vaccine deployment to Africa. In historic COVID-19 vaccine procurement agreement signed on 28 March 2021, the AVATT had previously successfully secured up to 400 million doses of the Johnson and Johnson single-shot COVID-19 vaccine with the support of the African Export-Import Bank (Afreximbank). The WB and the AVATT stressed the importance that countries get sufficient doses as quickly as possible and in an affordable way, according to the statement. Under the AVATT structure, AU member states are allocated vaccines according to the size of their populations through a pooled procurement mechanism. African countries have so far acquired around 54.9 million COVID-19 vaccines, which may cover about 2.1 percent of the population at the continental level, according to Africa CDC.
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Nigeria’s inflation slows for second straight month
Nigeria’s inflation rate surprisingly slowed to 17.93 percent in May 2021 from 18.12 percent in April 2021 beating most analysts’ forecasts. Analysts had projected that Nigeria’s inflation rate would resume its 21-month upward rise into May. The unexpected drop in the annual price level can be partly attributed to the decline in the food sub-index. Food inflation moderated to 22.28 percent in May from 22.78 percent in April. This rise in the food index was caused by increases in prices of Bread, Cereals, Milk, Cheese, Eggs, Fish, Soft drinks, Coffee, Tea and Cocoa, Fruits, Meat, Oils and fats and Vegetables.
Dangote Cement issues N50 billion bond at double-digit coupon rates
Dangote Cement Plc has announced the successful issuance of 50 billion Series 1 Fixed Rate Senior Unsecured Bonds, under its new N300 billion Multi-Instrument Issuance Programme. This was disclosed in a notification signed by the deputy company’s secretary, Edward Imoedemhe, sent to the Nigerian Stock Exchange, which stated that, the bonds were issued on May 26, 2021 at coupon rates of 11.25 percent, 12.50 percent and 13.50 percent for the 3, 5 and 7-year tranches respectively. Despite market headwinds, the bond issuance was well received and recorded participation from a wide range of investors including domestic pension funds, asset managers, insurance companies, and high net-worth investors. The proceeds of the bond issuance will be deployed for the company’s expansion projects, short-term debt refinancing and working capital requirements. Commenting on the bond issuance, Michel Puchercos, CEO, Dangote Cement Plc said the ability to issue Green Bonds and Sukuk would allow the company leverage the depth and breadth of the Nigerian market.
Renowned Entrepreneur Bukky George-Taylor announced as Director of Strategic Partnership for the Luxury Network Nigeria
Nigeria’s leading luxury affinity marketing and business networking group has re-appointed the Managing Director of Robert Taylor Media, Ms. Bukky George-Taylor for a second tenure as the Director, Strategic Partnerships for Nigeria. The network was formed to create highly lucrative business partnerships between some of the Worlds premium brands and high-end service providers, thereby providing access to a wider pool of pre-qualified, high net worth clients. The re-appointment was based on Ms. George-Taylor’s ability to create unique partnerships, facilitate growth, member experience and the ability to create marketing and communications tactics that align with the networks and member goals. Bukky, who was first appointed in 2018 has worked with the network to define the face of the brand in the Nigerian Luxury Market. Since its inception, The Luxury Network Nigeria has facilitated some exciting collaborations, with brands such as Porsche, Harrods, Visa, UBA, Fidelity Bank, The Wheatbaker Hotel, Capital Club, Montaigne Place, Wells Carlton, the Financial Times, Roja Parfums, Bvlgari Hotel London, Bicester Village in Oxfordshire and more.
Speculators lose big on dollar’s sudden crash to N480
Nigeria’s currency on Thursday strengthened by 4. 95 percent as the dollar which had risen to N505 suddenly crashed to N480 on the black market, putting speculators in a loss position. This implies that for every dollar speculator bought at N505 on Wednesday they have lost N25 a day after. The naira appreciation followed an undisclosed amount of dollar supply by the Central Bank of Nigeroa (CBN) to deposit money banks to meet the eligible needs of end-users. During the intraday trading on Thursday, the dollar was trading between N480 (buying) and N485 (selling) at Lagos street markets. Elsewhere in the country, the dollar was selling at N487.
CBN to print money for Gambia
The Central Bank of Nigeria (CBN) says it is ready to help the Central Bank of the Gambia (CBG) to print its legal tender, the dalasi. Godwin Emefiele, governor of the CBN, disclosed this in Abuja on Tuesday during a two-day visit by a delegation from the CBG, led by Buah Saidy, its governor Emefiele was responding to a request by the CBG for a possible partnership to tackle acute currency shortages among other currency management challenges in the country. Saidy informed the CBN governor that relying on its current printer, De La Rue of London, for its currency needs was expensive and unsustainable. He explained that it costs the bank about £70,000 to lift printed currencies from Sri Lanka to the Gambia. Emefiele assured his visitors that the CBN has a competitive advantage to undertake the currency printing for Gambia, adding that the Nigerian Security Printing and Minting has a lot of idle capacity to satisfy the demand of the CBG. “Our colleagues from Liberia who were there two months ago were fascinated by the facilities we have at the Nigerian Security Printing and Minting,” he said.
