Bitcoin broke above $81,000
Bitcoin has reached a new milestone, climbing above $81,000 for the first time. This surge comes as Donald Trump, who has shown support for digital currencies, won the presidential election, and as more politicians who favour cryptocurrency have gained positions in Congress.
After winning Arizona, Trump completed a sweep of all seven key battleground states in the election. His victory has the cryptocurrency industry celebrating, particularly since it invested more than $100 million to support candidates who favour digital currencies.
The price of Bitcoin jumped by 6.1% on Sunday and reached a record high of $81,497 early Monday in Asia, before settling at $80,835 by 9:30 a.m. Singapore time. The positive mood in the market also lifted other cryptocurrencies, including Dogecoin, a popular digital currency frequently promoted by Trump ally Elon Musk.
Petrol landing cost drops to N971/litre
The cost of bringing petrol (Premium Motor Spirit) into Nigeria has dropped significantly over the last three months, falling by 20.34% to N971.57 per litre. This cost includes all expenses involved in importing and distributing the fuel, and its decrease suggests some improvement in global market conditions and supply chain costs.
Yet, (not so) surprisingly, the price Nigerian consumers pay at the pump has gone in the opposite direction. Between August 1 and November 8, 2024, the retail price of petrol jumped from N617 to N1,060 per litre – a dramatic increase of N443 or 71.79%.
The Major Energies Marketers Association’s daily energy bulletin provides some interesting details about these changes. In August, oil companies were importing petrol at N1,219 per litre, when crude oil cost $80.72 per barrel and one dollar was worth N1,611. During that time, consumers were paying N617 per litre at the pump.
The situation looks very different now in November. Even though the cost of importing petrol has dropped to N971.57 per litre (with crude oil at $75.57 per barrel and the dollar at N1,665.84), consumers are paying much more – N1,060 at NNPCL stations and even higher prices of N1,180 at independent fuel stations.
Read Also: Nigeria’s budget cycle: Prioritising service over rent-seeking
Nigerian states are falling deeper into debt
Nigerian states are falling deeper into debt, owing a total of N11.47 trillion as of June 30, 2024. This growing debt problem exists despite states receiving more money from the federal government’s monthly allocations. According to the Debt Management Office’s public debt reports, this represents a 14.57% jump from the N10.01 trillion owed at the end of 2023.
The main reason for this increase is that states’ foreign debt has grown significantly, made worse by the falling value of the naira. While the actual amount of foreign debt increased modestly from $4.61 billion to $4.89 billion (a 6.14% rise), the story looks much worse when converted to naira. Because the naira’s value dropped from N899.39 to N1,470.19 against the dollar between December 2023 and June 2024, the foreign debt in naira terms shot up by 73.46%, from N4.15 trillion to N7.2 trillion.
Building collapse cases rise to 635
A new report from the Building Collapse Prevention Guild reveals that Nigeria has experienced 635 building collapses from 1974 through November 5, 2024 – a period of 50 years. Lagos State stands out as having the most serious problem, with 351 buildings falling down during this time, representing more than half (55.28%) of all building collapses nationwide.
The report gave a concerning picture of building safety across different parts of Nigeria. As stated in the report: “Lagos State accounts for 55.28 per cent of recorded building collapse incidents in Nigeria. Abuja follows in second place with 4.25 per cent, Anambra ranks third with 4.09 per cent, Oyo is fourth, and Kano holds fifth place with 3.46 per cent. Taraba, Bayelsa, Gombe, and Yobe states each recorded their first building collapse incident in 2022. In Zamfara, Taraba, Yobe, Bauchi, Bayelsa, Sokoto, Gombe, Katsina, and Kebbi states, there has been only one recorded building collapse.”
Trump and Scholz discussed a ‘return to peace in Europe’
Donald Trump and German Chancellor Olaf Scholz had their first conversation since the U.S. election, with both leaders promising to work together to bring peace back to Europe. This news came from Steffen Hebestreit, Scholz’s spokesperson, in a statement released Sunday.
During their call, the two leaders discussed the relationship between Germany and America, as well as current global challenges. According to Hebestreit’s statement: “The chancellor underlined the government’s willingness to continue the decades-long successful cooperation between the governments of both countries. They also agreed to work together towards a return to peace in Europe.”
European leaders are paying close attention to Trump’s upcoming return to the White House, particularly regarding how it might affect the ongoing war between Russia and Ukraine. Trump has been critical of President Biden’s support for Ukraine, and has made bold claims about the conflict – saying Russia would never have invaded if he had been president, and stating he could end the war within 24 hours.
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