Five things to know to start your Tuesday

Government borrowing hit N42 trillion

The Central Bank of Nigeria’s recent data reveals that government borrowing has grown much more rapidly than private-sector borrowing over the past year.

In the most recent financial report, government credit dramatically increased from N22.14 trillion in September 2023 to N42.02 trillion in September 2024, representing an almost 90 per cent jump. This means the government has significantly expanded its borrowing compared to the previous year.

Meanwhile, private sector credit also grew, but at a more moderate pace. Banks increased lending to private businesses and individuals from N59.51 trillion to N75.85 trillion, which represents a 27.46 per cent increase during the same period.

South Korea’s main opposition plans to force through budget

South Korea’s main opposition party announced on Tuesday that it would pass the 2025 government budget bill, which had previously prompted President Yoon Suk Yeol to declare martial law last week. The party plans to do so during a plenary session scheduled for later that day.

Last month, the opposition-controlled parliament reduced the government’s proposed budget by 4.1 trillion won, bringing the total from 677.4 trillion won (equivalent to $473 billion) to a lower amount. Democratic Party Leader Lee Jae-myung stated, “We will pass the budget bill today. A swift passage of the bill will help resolve the current uneasiness and crisis.”

The government argues that this budget cut will severely impact its ability to function effectively. They claim it will impede responses to external challenges and delay policy measures designed to support small businesses and vulnerable populations.

President Yoon justified his martial law decree on 3 December, citing the opposition’s obstruction of government budgets as a key reason. This action has created a constitutional crisis in South Korea, which is Asia’s fourth-largest economy.

Read Also: South Korean president Yoon under pressure to resign, banned from foreign trips

Airline fares have skyrocketed ahead of the Yuletide

Several domestic airlines in Nigeria have dramatically increased airfares to the South-South and South-East regions, with some one-way tickets now costing around N287,000 as of December 18, 2024.

Traditionally, airfares rise during the holiday season due to high ticket demand. However, this year, passengers are finding ticket prices exceptionally steep, reflecting broader economic challenges facing the country.

A review of various airlines’ websites reveals that airfares, especially to the South-South and South-East regions, have surged by over 100 per cent compared to pre-holiday prices.

For instance, Air Peace’s booking platform shows significant price increases. A one-way economy ticket from Lagos to Asaba in Delta State jumped from N97,400 on December 5 to N287,800 by December 18. The airline intends to maintain these elevated prices through the end of the year.

Similarly, the Abuja to Asaba route saw a price increase from N95,400 on December 5 to N285,800 by December 16. The Lagos to Benin route in Edo State remained stable at N95,000, while the Abuja to Benin route increased from N95,000 to N285,800 by December 16.

The UK says it’s not pushing hard policies against Nigerians

The United Kingdom has issued approximately 300,000 visas to Nigerians in recent years, according to Richard Montgomery, the British High Commissioner to Nigeria.

Montgomery emphasised the strong relationship between Nigeria and the UK, highlighting that Nigeria is a major beneficiary of the UK’s post-Brexit migration policies. He directly addressed concerns about harsh immigration rules, arguing that the UK’s visa policies have actually been quite favourable to Nigerians.

On Channels Television’s Sunrise Daily, Montgomery stated, “I have to contest this picture because the UK in the last couple of years has granted around 300,000 new visas to Nigerians, which far exceeds any other visa relationship Nigeria has with any other country.”

He further explained that the migration trends since Brexit have been positive for Nigeria. Particularly notable is the significant increase in work visas granted to Nigerians. A few years ago, the annual number of work visas ranged between 10,000 and 20,000. In recent years, this number has dramatically risen to between 80,000 and 90,000 annually.

Chinese exports rose in November

Chinese companies are rushing to export goods to the United States ahead of new tariffs, which has driven up export numbers in November. Meanwhile, imports unexpectedly declined, further highlighting the challenges in China’s domestic economy.

According to the customs administration, exports increased by 6.7% compared to the previous year, reaching $312 billion. At the same time, imports dropped by 3.9%. This resulted in a significant trade surplus of $97.4 billion for the month.

Two key factors drive the export surge. First, US importers are trying to secure goods before anticipated tariffs take effect. Second, Chinese companies are increasingly looking to overseas markets to compensate for weak domestic demand.