Connect with us

Business

Foreign Capital Imports in Nigeria drop by 78%

Published

on

The National Bureau of Statistics of Nigeria, or NBS, has reported at the start of September that the value of Nigeria’s capital imports fell to $1.29 billion. This means that there is an active decline of 77.88 percent in the value. This is especially troublesome considering the fact that during the first quarter of 2020 the capital import used to be $5.85 billion.

 

This means that cumulatively, on a year-to-year basis, the drop amounted to a whopping 78.60 percent from what it used to be in the second financial quarter of 2019 ($6.05 billion).

 

It is no secret that this large decline is largely attributed to the ongoing novel coronavirus pandemic which is currently plaguing the world. Nigeria is not the only country that has been affected by the global problem. Almost every other country in the world is having financial problems with global economies like the US and UK shrinking by 20%. In Nigeria during the period between April and June the Foreign Direct Investment, or FDI, calculated in equities and other capital, has fallen by 30.65 percent on a quarterly and by 33.41 percent on yearly basis. The current number is sitting at $148.59 million. According to NDS, the FDI accounts for almost 12 percent of the total capital that has been imported in the second quarter of 2020. One of the leading causes is portfolio investment (equities, bonds, foreign exchange market, etc). These investments accumulate to 29.76 percent of the total inflow of foreign money. This unit has fallen by an incredible 91.06 percent just between the first and second quarters of 2020 to $385.32 million.

 

Major capital investment contributor is classified under “other investment” and comprises trade credits, currency deposits, loans, etc. The statistics show that these types of investments account for as much as 58.77 percent of total imported capital or $761.03 million. The decline here is also quite visible as there is a drop of 42.81 percent on quarter to quarter and 48.60 percent on yearly basis.

 

According to the report made by the NDS, during these times of crisis, Great Britain has become a major capital investor of Nigeria in the second quarter where the inflow of money shows $428.83 million. This is 33.12 percent of the total capital inflow in the second quarter of 2020.

 

The largest capital importing state is still considered to be Lagos with $1.13 billion or 87.30 percent of the total capital inflow in Q2 of 2020 closely followed by the states of Abuja and Ogun in second and third positions. However, the difference of capital investment here is quite troubling since Abuja has only $145.30 million and the Ogur state is netting $11 million which are 11.20 percent and 0.85 percent of the capital importing total.

 

The foreign exchange market (Forex, FX) in Nigeria is starting to boom though. Due to the novel coronavirus which has left a huge number of residents unemployed and others locked up in their own homes the number of people who started researching additional ways to generate income has increased by a significant amount. Forex has proved to be a useful instrument in this battle against unemployment. The educational material is freely available online, so it isn’t far from reality that anyone with a decent computer, smartphone, or even a tablet could go through some materials over the internet.

 

Choosing a proper, licensed broker is also quite an endeavor. However, it is made easier due to the efforts of regulatory bodies that work hard on licensing these firms which afterward have the ability to offer reliable services. If you’re a trader, you can read online forex reviews here to choose your desired broker, test the waters with a demo account, invest, and start trading currency pairs. It is a unique opportunity for people living in developing countries that do not have enough finances to manage the Coronavirus pandemic. This has been successfully done by countries like South Africa, which has introduced its own regulatory body – Financial Services Conduct Authority (FSCA) – that managed to put the country on the global playfield with the South African rand now becoming the 18th most traded currency on Forex globally.

 

The reason FX is profitable now is because of the Nigerian naira pushing the limits. The currency has become stronger during the last couple of months (everything is comparable) but this can be largely attributed to the fact that the decrease in imports leaves more focus on exports which directly translates to the strengthening of the local currency. However, the margin at which it strengthened leaves something to desire more. Unfortunately, the Nigerian naira has been devaluing for a very long time now and unless something changes in the inner politics of the nation it is not going to improve. The devaluation happens due to the oil prices jumping around constantly. Nigeria is extremely dependent on the crude price. This has gone to the extent where there are multiple exchange rate policies for naira. Currently, it is sitting around N381 which is a 21 point increase from what it used to be prior to the lockdown.

Continue Reading

Business

Adeniyi’s Impersonator Faces Trial, Knows Fate, July 3

Published

on

The Federal High Court sitting in the Central Business District of the Federal Capital Territory, Abuja, has conducted a hearing of one Ibrahim Shu’aibu, a 50-year-old man, for assuming the character of the Comptroller-General of Customs (CGC), Bashir Adewale Adeniyi, among other distinguished personalities in Nigeria, to commit fraudulent activities.
The Nigeria Customs Service (NCS) had in January addressed the media about the suspect’s apprehension by the Service’s Police Unit following his involvement in fraudulent activities, which included luring numerous citizens to pay him money for the issuance of job appointment letters.
During the court hearing, the lead Counsel of the NCS, Abidemi Adewumi-Aluko, said the accused was arraigned on a nine-count charge to which the defendant pleaded not guilty.
Justice Binta Nyako, the Presiding judge, adjourned the hearing to Wednesday, 3 July 2024, and ordered that the accused be remanded with the Nigerian Correctional Service pending the fulfillment of bail requirements.

By: Nkpemenyie Mcdominic, Lagos

Continue Reading

Business

Trans-Border Trade Setback: Shippers’ Council Pledges Support For ITC 

Published

on

The Nigerian Shippers’ Council (NSC) has expressed readiness to support the International Trade Centre (ITC) as part of measures toward resolving challenges faced by trans-border traders and trade facilitation.
Executive Secretary, Nigerian Shippers’ Council, Barr. Pius Akutah, disclosed this in Lagos last Friday, when  delegates of ITC, paid a working visit on a fact finding mission.
While harping on the role of the Council as an ombudsmen in port operations, Akutah emphasized that trade facilitation is a major initiative of the NSC, pledging to provide the necessary support to ensure the success of the study brought forward by the ITC team.
He noted that the study will strengthen the Council’s ability to formalize informal trade at border areas, gather statistics, and plan for trade volumes.
Akutah stated that the focus of the study is on agricultural products, as a significant area of potential for Nigeria, not only in the African region, but also globally.
He expressed optimism that the study will help develop skills and improve operations at the Border Information Centre (BIC) managed by the Council.
“Trade facilitation is one of the major aspect of what we do so we are going to give you the necessary support to achieve the success that is desired.
“The study will help us to plan and develop more skills in terms of what we do at the Border Information Centre. Shippers Council is a partner and I want us to take our partnership to the next level that will focus on engagement with our stakeholders”, Akutah noted.
Speaking earlier during the courtesy visit to the NSC headquarters, Associate Programme Officer, ITC, Richard Eke- Metoho, who led the delegation, said the visit to the Council was part of the team’s ongoing study to identify areas for improvement in trade facilitation, particularly at border crossing points.
He stated the importance of collecting data from the Nigerian Shippers’ Council, which manages a border information center at Seme-Krake border.
According to him, some of the identified challenges faced by traders and truck drivers using the Seme-Krake border, a key trade route is the number of checkpoints and lack of scanners.
He said information collected by the team will not only identify existing trade facilitation measures that are working effectively, but also lead to the development of new trade facilitation measures that address the challenges faced by traders
He said, “We are here to collect experience from the Nigerian Shippers Council.
“From our interactions with the Shippers Council, we keep finding similar problem faced by traders, most especially on the number of checkpoints and scanners that are really needed especially for transporters and truck drivers.
“It is still an ongoing study. The more information we collect right now, the more it will help us to make more informed decision process. At the end of the study, we will be able to develop a report that will pinpoint all the main obstacles that traders are facing”.

Continue Reading

Business

Customs Condemns Attack On Officers In Katsina

Published

on

The Nigeria Customs Service (NCS) has condemned the brutal attack on its officers and men at the Gamji Makaho checkpoint in the Dankama area of Katsina State on April 17, 2024, which claimed the life of Customs Assistant II Auwal Haruna.
The Service vowed that it would stop at nothing in securing justice for the victims of the attack.
NCS also said it would rejig its anti-smuggling operations while strengthening collaborations with other sister security agencies as part of measures to reinforce the fight against smuggling.
Speaking on the resolve of the management to pursue the matter to its logical conclusion, Comptroller General of Customs, Bashir Adewale Adeniyi extended his heartfelt condolences to the family and colleagues of CA II Auwal Haruna.
He disclosed that the service, in close collaboration with other security agencies, is tirelessly working towards “apprehending the perpetrators of this reprehensible act and ensure they face the full consequences of the law.
“Violence against our officers is utterly unacceptable, and we will pursue every avenue to bring those responsible to justice.
“The safety of our personnel and the security of our borders remain paramount. We are committed to working with traditional rulers, government bodies, and sister agencies to combat this heinous crime against our personnel”.
He further reaffirmed the unwavering commitment of the service under his watch to combating smuggling and other cross-border crimes, adding that the Service will not falter in its mission to uphold the laws of the land and protect the interests of the Nigerian people.
The CGC said: “Intelligence available to us indicates that certain unpatriotic community members are harbouring suspected accomplices involved in this heinous crime.
“We implore these individuals to embrace patriotism by aligning with the laws and refraining from condoning illegality. It is in the best interest of our communities and nation to collaborate with law enforcement agencies to root out criminal elements and ensure that justice prevails”.

Continue Reading

Trending