Veteran singer, Eedris Abdulkareem has said 21 years after he released his controversial song, ‘Jaga Jaga’ which satirised the poor living condition in Nigeria, the country is still in ruins.
He lamented that things are getting worse, stressing that the exchange rate of the Dollar is going to N2,000.
He bemoaned the hardship in the country while featuring as guest in a recent episode of The Honest Bunch Podcast co-hosted by actor Chinedu Ani Emmanuel, aka Nedu, Deity Cole, and Husband Material.
Abdulkareem said, “Nigeria still Jaga Jaga 21 years later. Hunger everywhere, people are dying. How will people survive when Dollar is N1600? Goodluck Jonathan left it N198. [Muhammadu] Buhari took it to N300, [Bola] Tinubu skyrocketed it to N1600.
“Dollar is going to N2000. So how do you want common people to survive in this country? Even the Yorubas they were shouting ‘Emilokan’, they are the ones dying of hunger now.”
Video:
Media
“Nigeria still Jaga Jaga 21 years later. Dollar is going to 2000 Naira”
— ???? @???????????????????????????????????????????????????? (@OneJoblessBoy) February 19, 2024
- Eedris Abdulkareem pic.twitter.com/fRlFh2UDLm
A video captures a friendly exchange between media personality, Nedu and business mogul, Pascal Chibuike Okechukwu alias Cubana Chief Priest.
In the video, Cubana Chief Priest is seen holding a tortoise while Nedu knelt in front of him.
Cubana Chief Priest could be heard asking Nedu if he could live in the same house with the deity (what he described as Odejimjim) and Nedu who was overly eager to do anything to make money replied with a resounding yes.
After several verbal exchanges, Cubana Chief Priest asked Nedu to entertain Odejimjim, by dancing for the tortoise
Nedu went on to twerk for the acclaimed deity, and at a point tried to pull off his trousers to show his loyalty which left Cubana Chief Priest amused.
Sharing the video, Nedu wrote:
“I can live with it ooo….”
Reacting to the clip, netizens left suggestive comments as they envisaged more to the skit.
One official_vycon wrote: “Like play like play, men dey share secrets say na skit.”
gbengaadeyinka1stgcon wrote: “I go marry odejimjim sef but na if he no vomit the money him go know say tortoise peppersoup Dey sweet me to chop.”
louisalimi wrote: “You might just think it’s all cruise look deeply.”
uefa_elshaddai wrote: “????????????????????, now tell me how tinubu go believe say we de suffer for this country.”
nonsii07 wrote: “No bejoke be this oooo….. If you know you know.”
hassanmessi40 wrote: “I have been thinking how this man makes his Money ????????.”
Watch the video below:
Media
Nigerian music icon Eedris Abdulkareem explains how he set the pace for the success of current Nigerian superstars Burna Boy, Wizkid, Davido, and others.
The veteran Nigerian singer discussed his impact on the music industry and emphasized the importance of recognizing his contributions to the growth of Nigerian artistes.
Eedris Abdulkareem claims to have led the movement that resulted in the global recognition that Burna Boy, Wizkid, Davido, and other Nigerian artists enjoy today.
He claimed that his protest against the mistreatment of Nigerian artistes by show promoters in 2004, when he clashed with American rapper 50Cent and his G-Unit bandmates in Nigeria, is the reason Nigerian artistes are now appreciated around the world.
In the most recent episode of The Honest Bunch Podcast, Eedris abdulkareem admitted that his rebellion had an impact on his career, but also stated that it was a beautiful sacrifice that brought the existence of Nigerian artistes Burna Boy, Wizkid, and Davido.
He said:
“You heard someone like Burna Boy said nobody helped him in Nigeria. Would you have been a star without some people starting the revolution? That is a stupid talk. You wouldn’t have been where you are if we didn’t make this industry what it is; if we didn’t fight for it. Unfortunately, most of them don’t appreciate it. And I don’t give a dime.
“It [fighting for Nigerian music industry] affected my career but it was a beautiful sacrifice that gave birth to Davido, Boy, Wizkid, and everybody today. For me, what’s more important is that I have done what God asked me to do and our music is now allover the world. I have opened the road for them. It’s their responsibility to appreciate the fight. And if them don’t, I don’t give a dime.”
Nigerian movie actresses, Bimbo Oshin and Mercy Aigbe have lamented the economic hardship in Nigeria, saying that it is unbelievable.
52-year-old Bimbo Oshin on her part, cried out in an Instagram post on Monday in which she stated that Nigerians are suffering.
Bimbo Oshin wrote:
“An (sic) hungry man is an angry man. The economic hardship is unbelievable. There is a limit to human endurance. We are suffering. Ilu ke koko ko easy rara.”
Her colleague, Mercy Aigbe in her own post appealed to Seyi Tinubu, son of President Bola Tinubu, to beg his father to do something about the present situation of the country.
The filmmaker made the appeal in an Instagram post with disturbing footage of a group of people collecting what seem to be food items from an NGO foundation.
Reacting to the video, the 46-year-old described the present situation of the country as “Terrible”and “Unbearable, calling on the government to do something.
Mercy Aigbe also asked the president’s son Seyi to beg his father on behalf of Nigerians. She wrote:
“People are hungry! People are dying! People are going out of their minds!
“The present situation of the country is TERRIBLE! The government should please, please we are begging, they should do something about this economic hardship!
“IT’S UNBEARABLE @officialasiwajubat @seytinubu please beg your father for us! O to ge!!!!”
This comes hours after Seyi Tinubu urged Nigerians to trust his father to turn Nigeria’s fortune around.
Amid the president’s son’s call, protests have started building up in different parts of the country over the state of the economy.
On Monday, young people in Ibadan made their grievances known through a protest. Earlier this month, there was a similar protest in Minna, Niger State.
Popular Nigerian singer Burna Boy has opened up on his current stance on marriage, revealing the reason he is yet to tie the knot or start a family.
The Grammy-winning artist sheds light on the reason behind his decision to delay marriage.
In a circulating video, Burna Boy explained that the primary factor contributing to his unmarried status is the fact that he has not yet found the right partner.
The artist expressed his willingness to settle down but emphasized that he is waiting for divine guidance in choosing a life partner.
“If God says make I marry, I will marry. Na God dey do all, me I just dey follow. I don’t hate nobody, I just don’t like it when they use lies and agendas,” Burna Boy said in the video
See below;
Media
Tinubu Has No Solutions To Nigeria’s Problems — Bugaje Says Sycophants Around Are Not Telling Him Truth
AdminA political activist Usman Bugaje claims President Bola Tinubu is incapable of addressing the numerous challenges facing the country.
Since the fuel subsidy payment was stopped and the naira floated, Nigerians have been experiencing biting economic issues with inflation hitting 29.90 percent, sparking protests in some parts of the country.
Although the government has rolled out several plans to address the challenges, Bugaje maintains Tinubu has no solution to Nigeria’s issues.
”Today, it is everybody’s knowledge that Bola Tinubu has no solutions to the problems of this country….his government has failed to address the most essential issues,” Bugaje, a former member of the House of Reps, said on Channels Television’s Politics Today on Monday.
He blamed the Tinubu government for ending the subsidy regime without plans to cushion its impacts.
“We had expected that when the new government took over, we were expecting that he would surround himself with expertise. We were expecting that for him to have announced the removal of the fuel subsidy, he must have had a plan – something that would address the consequences of that,” the political activist said.
“You don’t make a policy without looking at the consequences and preparing to cushion the effect of that. But apparently, he did that without preparation.”
Bugaje blamed Tinubu’s advisers for not telling the president the truth about the state of the country.
“I can see a lot of sycophancy around him (Tinubu). People are not engaging him. They are not telling him the truth and he seems to be very comfortable with the kind of people he has around him who don’t seem to have any ideas in their heads,” he noted.
“They don’t seem to have any solutions to the problems that we have and they are always trying to find excuses.”
Former Minister Solomon Dalung has criticised the Tinubu-led government for consistently attributing Nigeria’s economic challenges to ex-President, Muhammad Buhari.
In a series of posts on his X account on Monday, Dalung argued that if Tinubu’s administration devoted the same resources and effort used during elections and tribunals to tackle security and economic issues, significant improvements could be achieved.
He emphasised that simply blaming Buhari for economic woes wouldn’t alleviate the hardships faced by the people.
Dalung expressed disdain for attempts to shift blame to Buhari and others within his government, stating that it was hypocritical. He questioned whether bulk trading was the only solution proposed by the economic team, highlighting the urgency of addressing hunger and the high cost of living.
Dalung also criticised the reckless economic policies implemented by Tinubu’s government, such as subsidy withdrawal without adequate measures, currency devaluation without stimulating production, and high governance costs. He argued that blaming Buhari for these issues was unjustified.
Acknowledging Buhari’s failure to fulfill the “change” promise, Dalung maintained that the responsibility for Nigeria’s economic woes lies with Tinubu’s government due to its reckless policies. He called for accountability and urged Tinubu’s administration to take responsibility for its actions rather than deflecting blame onto others like Buhari.
He said, “The attempt to change narratives of #officialABAT from “don’t pity me, I look for the job and got it” to blaming Buhari by #BwalaDaniel #aonanuga1956 & Co travellers is uncharitable hypocrisy, #officialABAT knew all these problems, yet “he snatched power and run away with it
“Blaming #MBuhari for economic woes cannot address the economic situation confronting the people? Can bulk trading be the only solution for #officialABAT & his economic team? The pregnant situation deserves urgent prescriptions. Hunger & high cost of living is at unbearable level..
“An empty stomach does not listen to the voice of the gospel, the echoes of concerns especially traditional rulers cannot be ignored. I lean my voice to it, #officialABAT hunger is a recipe for disaster, can you sit back at home and engage broadly if your wisdom cannot provide solutions?
“If #officialABAT deploys the same energy, knowledge, tactics & money during elections & tribunal to deal with Nigeria’s security & economic challenges, things will change. Why has the steam suddenly changed to blaming Daura? You have snatched power, oya perform your Lagos miracles.
“All mercenaries hired for a paradigm shift for blame game failed to explain the reckless economic policies of subsidy withdrawal without shock absorber mechanisms, floating the Naira without stimulating production, corruption & high governance cost. Is #MBuhari also responsible?
“All those appealing for sacrifice are dishonest, what else are the people expected to sacrifice — their lives? All imperatives of survival have been snatched by #officialABAT IMF-induced economic policies. Yet the body language of the #officialABAT government is that of Owambe. Shame.
“Nigerians cannot sacrifice under rudderless leadership. Has the #officialABAT government accounted for proceeds of subsidy withdrawal since May 29th 2023? what moral high grounds are they blaming #MBuhari who left fx at #700 pd, rice #35,00 PB, cement #3000 PB, all these have tripled.
“There’s no regret whatsoever we thought of changing the social order”. The failure of #MBuhari to deliver “change” is inexcusable however, it is not responsible for the self-inflicted economic woes caused by #officialABAT reckless economic policies without a human face.
“We take full responsibility for the failures of the #MBuhari government to deliver on the change mandate. #MBuhari should be excused from the economic woes induced by a deficiency of ideas. This bulk pushing is mercenary tactics of distracting attention from taking responsibilities.”
Nigerian Naira is currently trading at over 2,000 Naira against the British pound in the parallel market, New Telegraph reports.
Malam Ibrahim, a Bureau De Change (BDC) operator in Wuse Zone 4, confirmed the price of the local currency to our correspondent On Monday, February 19
According to the news report, the new rate is higher than the N1,930 reported on Saturday and is currently the lowest point in the naira’s historical performance.
In the parallel FX market, where the naira is unofficially trading at N1,673 from N1,670/$ on Friday, the naira also lost value in relation to the dollar.
Confirming the development, Ibrahim said, “Yes it is true, we are currently selling above N2,000 for the pounds and it is still about the heavy and consistent demand for these currencies.”
Suspected kidnappers have abducted the corpse of late Ugwuanyi Israel from Ameze Owerre, Umabor community in Nsukka local government area of Enugu State.
The deceased’s corpse was being conveyed from Lagos to Nsukka for funeral arrangements when the abduction occurred.
The incident happened along 9th Mile Road in the Umuoka community in the Udi Local Government Area of Enugu State.
The gunmen not only took Ugwuanyi’s body but also abducted all family members accompanying it.
The family members, who were transporting Ugwuanyi’s body back home, fell victim to the kidnappers’ ambush.
According to a family source: “His corpse was on its way from Lagos yesterday (Sunday) when the vehicle conveying his body was halted by kidnappers and people in the vehicle alongside the driver were all kidnapped at Umuoka Udi LGA of Enugu State.”
Our correspondent gathered that the kidnappers had since established contact with the family and demanded a N50 million ransom.
The source said: “They called Monday morning to inform us to look for N50 million.
“Our fear is that the corpse will decompose before they release them. We don’t know what to do because our community people in Lagos spent so much money on the sickness of Israel”.
She called on the security agencies and the state government to come to the aid of the people to save those in captivity.
The Police are yet to comment on the incident as of the time of filing this report.
The Federal Government has begun setting up the E-Gates facility at the Nnamdi Azikiwe International Airport located in the Federal Capital Territory, Abuja.
Olubunmi Tunji-Ojo, the Minister of Interior, announced the start of the project through his official X account following his inspection tour of the installation work currently underway at the international airport in Abuja on Monday.
- “Today, I took a tour of ongoing projects, first the E-Gates facility currently being installed at the Nnamdi Azikiwe International Airport, Abuja,” the minister’s post on X read in part.
The minister also mentioned that the E-gates facility will be implemented at all five international airports within the nation, which will, upon its completion, minimize human interaction at these airports.
Moreover, alongside his visit to the Nnamdi Azikiwe International Airport to oversee the E-gates project, Tunji-Ojo indicated that he evaluated the implementation of the E-border data and control center at the Nigeria Immigration Service headquarters, targeting an enhancement of national security.
Backstory
- Nairametrics earlier reported that in a November 2023 interview on Channels Television’s Politics Today, Tunji-Ojo stated that e-gates would be implemented across all international airports in Nigeria by February 2024.
- “Once you’re Nigerian and you’re coming to Nigeria, you will have no business seeing an immigration officer, except if you’re a person of interest,” Tunji-Ojo he had stated.
- Furthermore, Nairametrics disclosed in December 2023 that Caroline Adepoju, the acting Comptroller General of the Nigerian Immigration Service (NIS), announced plans for the Service to enhance border security and manage migration more effectively nationwide by introducing electronic gates (e-gates) and additional logistics at airports and various entry points.
- Adepoju stated that these electronic gates (E-gates) are set to be installed at certain airports to facilitate the entry and exit of passengers traveling to and from the country.
[Nairametrics]
More...
Abag of cement cannot be sold below N7,000 due to the increasing cost of production, manufacturers said yesterday.
They said the rise in operating costs was responsible for the price hike.
The producers have agreed to reduce the price per 50kg bag from between N9,000 to N15,000 to between N7,000 and N8,000 depending on the location nationwide.
Representatives of Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc made the commitment after a meeting with Minister of Works, David Umahi, which was attended by his Industry, Trade and Investment counterpart, Doris Uzoka-Anite in Abuja.
Umahi called the meeting following the skyrocketing price of cement.
The manufacturers blamed the high cost of gas, import duties, bad road network, smuggling and the prevailing foreign exchange rate for the hike.
Executive Director of BUA, Kabir Rabiu, said the manufacturers would abide by the agreement.
He said: “Our cost component of energy went from 39 per cent to 60 per cent.
“The price of gas last year was N415, then it went to N715.
“Today, we are paying over N1,500. All these issues were discussed and we gave our commitment.
“When our six million tonnes of cement is supplied to the market in a few weeks, definitely we will see a sharp drop in prices when that volume hits the market.”
He said the huge disparity between demand and supply also played a major role in the price increase.
According to him, some manufacturing plants could not produce for some reason, which led to a reduction in production.
“Being the highest period of cement demand in the country, the tendency that demand will outstrip supply will push the price up,” he said.
He also said cross-border smuggling contributes to the scarcity of the commodity.
According to him, a bag of cement costs far more in Cameroun, which makes it attractive to move the product there illegally.
Group Managing Director/Chief Executive Officer of Dangote Cement Plc, Arvind Pathak, said notwithstanding that the core materials are locally sourced, spare parts and other variables are subject to import duties and foreign exchange.
A communique issued after the meeting, read by Umahi, states: “We discussed extensively the current prices of Cement viz a viz the challenges of the manufacturers.
“The manufacturers talked about their challenges ranging from the high cost of gas, import duties, bad road network and of course the high rate of FX against the naira.
“We also talked about the smuggling of cement across the borders.
“The government noted the challenges and we agreed that the Minister of Industry, Trade and Investment will seek some remedies from the President on the high cost of gas, issue of import duties and fixing of the roads, especially within the distribution corridors.
“On the issue of smuggling, the Trade Minister will brief the National Security Adviser (NSA) on smuggling the commodity across the borders.
“The government and the manufacturers noted that depending on the location, ideally, the price should not be more than N7,000 and N8,000 per 50 kg bag of cement.
“Therefore, the manufacturers – BUA Cement Plc, Dangote Cement Plc and Lafarge Africa Plc have agreed to sell their cement at between N7,000 and N8,000 per 50kg depending on the location.
“The Federal government and cement manufacturers will set up a price monitoring mechanism to ensure compliance.
“The manufacturers have accepted to sanction, on their own, any of their distributors or retailers found wanting.
“The government expects the agreed price to drop after securing government’s interventions on the challenges of the manufacturers on gas, import duty, smuggling, and better road network.
“It was also agreed that the government will encourage the emergence of at least six cement manufacturers to augment the three existing companies.
“We also agreed to reconvene in 30 days to review progress.”
Uzoka-Anite said the government was working hard to ensure that the prices of all commodities were reduced.
[TheNation]
The Chief Executive Officer of Nigerian Breweries Plc, Hans Essaadi, has said that the economic situation in Nigeria has deteriorated to the extent citizens can no longer afford to buy beer.
Essaadi said this on Monday at the company’s investor call following the release of its 2023 results.
“It has been unprecedented year for our business in Nigeria. We saw a significant decline in the mainstream lager market as a result of Nigerian consumers no longer able to afford a Goldberg after a hard day’s work,” Bloomberg quoted Essaadi as saying.
NB suffered a N153bn foreign exchange loss due to the devaluation of the naira for the year ended December 2023.
For the period under review, the company grew its revenue by 8.9 per cent to N599.64bn from N550.64bn. Net finance expense rose significantly by 449.7 per cent to N189.19bn, dragging the brewer to a loss of N106.31bn, from a gain of N13.19bn at the end of 2022.
In comments accompanying the financial results, the NB Board of Directors said, “The Nigeria business landscape experienced significant shifts in 2023 with substantial impact on businesses and livelihoods nationwide. The redesign of the naira notes which resulted in cash shortage that severely hampered social and economic activities nationwide set the tone for a turbulent year.
“High double-digit inflation rates (with food inflation at more than 30 per cent), removal of subsidy on premium motor spirit (fuel), devaluation of the naira, and foreign exchange scarcity further exacerbated the already difficult environment for the populace and businesses.”
He added that despite the headwinds, “The company was able to grow its revenue by nine per cent compared to the previous year aided by a positive price mix. However, the operating profit fell by 15 per cent due to higher input cost and one-off reorganisation costs despite strong and aggressive cost savings and other efficiency measures. Coupled with the impact of the devaluation of the naira which resulted in a foreign exchange loss of N153bn, the Company recorded a net loss of N106 billion during the year.”
The board went on to state its preparedness to tap into its decades of experience of operating in Nigeria to weather the current macroeconomic headwinds.
“In a difficult operating environment, the board will ensure that the company builds on its more than 77 years experience of operating in Nigeria to cope with current realities. The company will continue to be resilient and forward-thinking leveraging our broad portfolio, strong supply chain footprint and passionate workforce to drive long-term value creation for its shareholders and other stakeholders,” the board said.
In August, NB reviewed the prices of its products upward to accommodate the continued increase in the cost of inputs.
NB produces alcoholic products like Star Lager, Gulder, Legend Extra Stout, Heineken, Goldberg, Life, and Star Radler.
The Central Bank of Nigeria harmonised the segments of the foreign currency market in June 2023 leading to a devaluation of the Naira.
The effect was felt by different companies that recorded forex losses. However, the banking sector faired better as they enjoyed FX revaluation gains.
[Punch]
THERE are indications that the Federal Government may be forced to review the 2024 Appropriation Act as recent developments in the foreign exchange market may have put the financial assumptions in complete disarray.
Sources close to the Finance Ministry told Vanguard that all the major components of the budget has been affected fundamentally by a drastic change in the budget parameters occasioned by the current foreign exchange market realities.
He pointed out that since the budget was passed into law, the official exchange rate benchmark which was N800/USD1 has moved up by almost 50 per cent, a development which has equally doubled both US dollar-based revenue and expenditure.
Consequently, the Naira values have gone up by about 100 per cent. The Senate approved the 2024 Appropriation Bill of N28.7 trillion, against the N27.5 trillion estimate presented by President Bola Tinubu.
The approved budget includes N1.7 trillion for statutory transfers, N8.7 trillion for recurrent expenditure, and N9.9 trillion for capital expenditure. All these figures have now been significantly altered by the development in the benchmark exchange rate which the Senate had moved from N750/ USD1 presented by President Tinubu, to N800/ USD1. Though the high level Finance Ministry official said he doesn’t have details of what is being done, he hinted that all the relevant ministries and government agencies are already working on what may become an amendment to the Act.
M a j o r budgetary dislocation
Financial experts who spoke to Vanguard also indicated that the barely six weeks old budget has suffered a major dislocation following the massive depreciation of the Naira across all foreign exchange market segments. According to their calculations, the implication on the 2024 budget is doubled fold with revenue and expenditure rising at the same time. However, they caution that a more prudent fiscal measure is needed to prevent the worsening of the current economic situation.
Rising revenue, expenditure
The major positive impact of the rising exchange rate, according to them, will be a rise in Naira revenue from the oil sector and other US Dollar-denominated revenues, with forecast at over N15 trillion, about 88 per cent higher than the N7.9 trillion actual budgeted amount. They also noted that this development may significantly reduce budget deficit to about N2.2 trillion from N9.2 trillion, if properly managed. But this is just one side of the development.
They also see a possibility of this exchange rate revenue gain being wiped out by a corresponding rise in expenditure as a result of US dollar-denominated obligations such as debt servicing and general foreign exchange denominated expenditures in the budget. At a debt service expenditure budget of N8.25 trillion, they forecast a likely rise to over N16 trillion at current exchange rate of about N1650/ USD1. They also pointed out that a quantum leap in Naira revenue could spark off profligacy and fiscal indiscipline, which will erode the exchange gains. The impact of this fiscal misbehaviour, according to the analysts, will further compound inflationary pressures in the economy, which will also drive up cost of executing the capital expenditure budget significantly.
This development, according to them, will be further aggravated by labour union pressures for increases in minimum wage which is expected to drive up personnel cost component of the recurrent expenditure. Overall, the multiplicity of rising capital and recurrent expenditure will wipe off the expected exchange rate revenue gain and even stoke a further rise in budget deficit by over 100 per cent to about N20 trillion.
Experts’ insight
Giving insight into the impact of the exchange rate development on the Federal Government’s 2024 budget, Ayorinde Akinloye, an investment analyst, noted that the rise in postbudget exchange rate would be positive for the FG’s revenue performance in naira terms in 2024. He explained that a weaker naira ensures that USD revenues generated through oil sales and taxes are higher when converted to Naira. “However, this will require the budget exchange rate for recognizing revenues to be adjusted to current realities’’, he said.
He further stated: “While revenue is likely to be higher, USD-based expenditure like foreign debt servicing will also increase in naira terms. “In addition, it is important to note that exchange rate and inflationary pressures could force actual expenditure to exceed the budgeted sums for different capital projects. “Also, a consistently weaker naira will force upward adjustment of minimum wage which will contribute to higher recurrent expenditure for the FG. “Thus, the impact will likely be mixed with marginal positive effects on budget deficits.” Speaking on the impact of the exchange rate on the 2024 budgeted debt servicing expenditure, Akinloye said: “Actual debt servicing will end up higher than the budgeted sum. This will largely be driven by higher naira value for USD debt servicing costs.”
Also speaking on the likely implications of the depreciation of the Naira on the 2024 revenue estimate, Gafar Bashiru, Senior Associate, Parthian Partners, a financial investment and advisory firm, said: “A weaker Naira, higher than the N800 exchange rate budget benchmark, can potentially boost government’s revenue from exports denominated in dollars, such as oil and gas. “This is because more Naira are received for each dollar of export earnings. A weaker Naira can, however, also increase the cost of imported goods and services, which the government relies on for some of its operations and projects. “This can lead to higher spending and potentially reduce the net impact on revenue. “I would expect a fiscally responsible government to make an effort to push for a net positive impact.” On the implication of the new exchange rate on the 2024 budget deficit, Bashiru, said: “The increased Naira revenue from oil sales by the NNPCL could reduce the budget deficit, as long as spending remains within budget. “However, this depends on how effectively the government manages the additional revenue. If the government uses the additional revenue to increase spending, it could lead to a wider deficit. “Additionally, the higher exchange rate could increase the cost of servicing external debt, given that 38% of Nigeria’s debt is denominated in foreign currencies as of June 2023.
“This proportion is expected to grow significantly, given the currency devaluation.” Continuing, he said: “Higher exchange rate will likely increase the Naira cost of servicing external debt. “This is because each dollar of debt translates to more naira to repay. This could put a strain on the budget, especially if the government’s Naira revenue does not increase proportionally. “If the government leans more on Naira borrowing, they might be able to mitigate the impact of higher exchange rate on debt servicing costs.” Also commenting on the post-budget exchange rate for the 2024 revenue estimate, Tajudeen Olayinka, Analyst/ CEO, Wyoming Capital and Partners, said: “It will improve collectable Naira revenue and could also increase Naira component of the budget as multiple Naira expense heads adjust to Naira/Dollar realities.” On the implication of the new exchange rate on 2024 budgeted deficit; he said: “It will, on a balance of probability, reduce the size of the deficit, as government cedes certain economic funding to private sector players who are obliged to recover costs fully.
“More Naira will be available for servicing Naira related debts, especially local debts. And certainly too, more Naira will go into circulation, further raising the prospect of inflationary spiral.” In his own comment, Analyst and Vice Executive Chairman, David Adonri, Highcap Securities Limited, said: “Recent computation of official foreign exchange rate means that FGN will convert its Dollar income at the new rate which will multiply it’s revenue in 2024.” On the implication of the new exchange rate on 2024 budgeted deficit, he said: “The increase in revenue to FGN that can arise from the new exchange rate ought to reduce 2024 budget deficit but impact of external debt service may neutralize the FX gain.
“At the new exchange rate, more Naira will be needed by FGN beyond the budget estimate to service external debt. ‘‘What FGN has done is to forecast a forward exchange rate based on current trajectory for planning purposes. ‘However, if the market is truly deregulated, market forces will ultimately determine the exchange rate.” Commenting as well, Victor Chiazor, Analyst and Head of Research & Investment, at FSL Securities Limited, said: “The constant
[Vanguard]
The Nigerian Breweries Plc recently announced an upward price change for its Stock-Keeping Units (STUs) with effect from February 19.
A letter dated February 12 titled: ‘Price review notification,’ by the Zonal Business Manager (West), Lekan Awosanya, reads in part: “This is to inform you that we are constrained to review the prices of some of our SKUs effective from Monday, 19th February 2024. This review has become necessary because of the continued rising input cost and the need to mitigate the impact.
“In appreciation of our great partnership and your commitment, we will deliver at the current prices all open orders that are fully funded and created in our system before 00.00hrs on Monday, 19th February 2024.
“While thanking you for your commitment to our great partnership, be rest assured that we will continue to support your sales/distribution efforts as always. For further clarification, please do not hesitate to contact your Regional Business Manager.”
1. GULDER – N950
2. STAR – N850
3. 33 EXTRA – N850
4. HEINEKEN – N1300
5. LIFE – N850
6. LEGEND – N1250
7. TIGER – N750