Palliatives: NEMA set to commence rice distribution
The National Emergency Management Agency (NEMA) said on Sunday that it has initiated plans to distribute 180 trucks of rice to states as part of a N5 billion palliative recommended by the National Economic Council to alleviate the effects of subsidy removal.
This policy has led to rising fuel prices, increasing the cost of goods and services, and driving many Nigerians into poverty.
Each state is to receive N5 billion to purchase 100,000 bags of rice, 40,000 bags of maize, and fertilisers. While the lifting and distribution of the rice have begun, NEMA is coordinating the efforts and also handling relief materials for states bordering Nigeria and Niger Republic.
Nigeria lost N249bn in July as oil output drops
Nigeria suffered a significant loss in crude oil revenue in July 2023, with data revealing a drop in oil production by over four million barrels between June and July, resulting in a loss of approximately N249 billion (around $320.4 million) during that month.
This decrease in oil output, attributed to pipeline vandalism and crude oil theft, led to the country’s production falling from 1.25 million barrels per day in June to 1.08 million barrels per day in July.
This marked a concerning trend, with the country’s oil production previously on the rise following efforts to combat oil theft. The drop in output raised concerns about economic repercussions, although hopes of improvement were pinned on new oil discoveries in Nasarawa and Bauchi.
Report: CBN distributed N38bn in loans to mortgage banks in 2022
The Central Bank of Nigeria provided loans and advances totaling N37.6 billion to mortgage banks in 2022, according to the bank’s audited financial statement.
The beneficiaries included the Federal Mortgage Bank of Nigeria and the Nigerian Mortgage Refinance Company.
The report indicated that the Nigerian Mortgage Refinance Company borrowed N37 billion, while the Federal Mortgage Bank received N9 million.
Additionally, N16 million was disbursed as a subordinated loan to mortgage finance banks under the Nigeria Housing Finance Programme, bringing the total to N37.6 billion.
Although it wasn’t specified whether the loans had been repaid, similar amounts were loaned to these banks in 2021.
CBN loans to power firms, manufacturers rise to N5.6tn
The Central Bank of Nigeria’s intervention in the power, manufacturing, and aviation sectors has reached N5.6 trillion over the past three years, a report from its consolidated financial statement has shown.
These soft loans were extended to address ongoing challenges in these critical sectors of the economy.
The loans were disbursed between 2020 and 2022 and offered by the Central Bank at single-digit interest rates with extended repayment periods.
In 2022, the CBN’s receivables in the power and aviation sectors decreased to N50.6 billion from N1.39 trillion in 2021.
Meanwhile, the manufacturing sector saw an increase, reaching N1.23 trillion in 2022, up from N919.03 billion in 2021.
Dollar gains intact as China disappoints, traders eye Jackson Hole
The US dollar began the week with strength after five consecutive weeks of gains, with investors closely watching the Federal Reserve’s Jackson Hole symposium for insight into future interest rates.
Last week, the dollar gained 0.7 percent against the euro and made slight gains against the yen.
It surged by over 1 percent against the Antipodean currencies as US Treasury yields rose in anticipation of higher rates.
The Australian and New Zealand dollars were slightly lower due to a Chinese rate cut that didn’t meet expectations. The yuan slid past 7.3 per dollar, while the Antipodean currencies acted as proxies for the yuan. Market attention is now on the Jackson Hole symposium, with the possibility of a shift away from ultra-low rates and concerns about volatile inflation. Bitcoin, after recent losses, was trading at $26,129.