Nairametrics introduces a brand new present titled “Comply with the Cash with Ugodre,” airing each Monday from 8 am to eight:30 am on Basic FM 97.3. The present digs deep into what occurred in Nigeria’s financial and monetary panorama the week earlier than.
Naira teeter-totters on the official market
On the primary episode of Comply with the Cash with Ugodre on Monday, November 13, Ugo began with the teeter-tottering nature of the Naira over the earlier week. For instance, on Thursday, the official alternate charge hit its highest-ever worth of N996, solely to return to N780 the following day, an enormous disparity of N216.
He then defined the hazards of an unstable alternate charge in addition to big gaps between official alternate charges and parallel market quotes, citing implications corresponding to roundtripping.
Turnover on the Nigerian Autonomous Overseas Alternate Market (NAFEM) through the week ending November 10, 2023, was $584 million. Ugo defined that the turnover doesn’t depict how a lot foreign exchange was bought, however how a lot was purchased and bought cumulatively, primarily gauging how a lot liquidity is available in the market.
Highlights of President Tinubu’s go to to Saudi Arabia
Among the sound bites from President Tinubu’s go to to Saudi Arabia had been in focus, together with the Saudi authorities’s pledge to help Nigeria with FX in addition to revamp Nigerian refineries.
Ugo highlighted the significance of the federal government partaking international buyers, noting that Nigeria over time has attracted extra international portfolio investments than international direct investments as a result of much less dangerous nature of FPIs.
On the query of Nigeria studying from the Saudi Arabians regarding the fiscal conservation, Ugo famous that the important thing factor is Nigeria’s capacity to provide crude oil that may allow the nation to satisfy Foreign exchange and income targets identical to Saudi Arabia.
Regardless of enhancements, Nigeria’s oil manufacturing stood at 1.5 million barrels per day in October 2023, falling wanting the 1.8 million BPD benchmark outlined within the 2023 finances.
Dangote refinery secures license to refine 300,000 barrels of crude oil every day
Dangote stated crude oil could be out there ‘very quickly’ for his refinery. There are additionally plans by the corporate to import crude oil for refining. Ugo famous that it might be extra helpful for the nation to export than to promote to Dangote therefore, the rationale for the importation.
NBS is more likely to launch inflation information within the new week
Ugo ended up with recourse to a latest report from KPMG that Nigeria’s inflation might climb to 30% by December 2023. He famous that September’s inflation charge of 26.72% is Nigeria’s highest in over a decade. He additionally touched on the affect of a weakening alternate charge on producer inventories and the continued subsidy within the electrical energy sector, citing its implication on the general inflation charge within the nation. To curb inflation, Ugodre outlined the need for stabilized FX costs, GDP development, and elevated international funding.
You can even take heed to FollowTheMoney with Ugodre on Spotify: FollowTheMoney with Ugodre: Episode 1 – The Nigerian economy and financial markets. by FollowTheMoney with Ugodre (spotify.com)
David Olujinmi is an formidable and dynamic particular person with a powerful instructional background in engineering. Whereas engineering laid the muse for his analytical abilities, David’s true ardour lies on this planet of finance, notably within the intricacies of capital markets, funding banking, and asset administration.