Naira rebounds to N864.29/$ amid reserve decline
The naira strengthened by 27.16% to N864.29/$ in the Investors and Exporter window, marking a recovery from its previous low of N1099.05/$.
Trading opened at N867/$, reaching highs of N1185.10/$ and lows of N720/$ before closing at N864.29/$.
Despite a surge in dollar turnover to $132.46 million, Nigeria’s forex reserves declined by $1.6 billion to $32.97 billion, impacting the naira’s stability. Economist Intelligence Unit predicts continued volatility due to limited FX reserves.
Major companies exit Nigeria, 6,000 jobs at risk, warns MAN
Several major companies are closing their production facilities in Nigeria, likely resulting in the loss of 6,000 jobs.
Procter & Gamble recently announced plans to end its operations, joining GlaxoSmithKline, Sanofi, and others leaving Nigeria.
The departures stem from business viability concerns. Shrinking profits also contributed, as seen in Unilever’s N1.09bn loss despite exiting certain markets.
Factors like foreign exchange scarcity and unfavourable macroeconomic conditions further challenge Nigeria’s business landscape, prompting fears of continued exits among manufacturers.
CBN suspends cash deposit fees amid scarcity
CBN suspends fees on cash deposits above thresholds, aiming to address nationwide cash scarcity. The directive, effective immediately until April 30, 2024, aims to stimulate deposits.
All regulated financial institutions are directed to accept cash deposits without charges. Citizens express concern over cash shortages affecting businesses, with some facing withdrawal limits and increased charges on withdrawals.
Bank Customers Association President anticipates this move will boost cash circulation, easing current scarcity.
Nigeria’s National grid collapses, power drops dramatically
Nigeria’s grid collapses again, plunging power generation from 4,032.8 MW to 43.5 MW before gradual recovery.
TCN restored most supply by evening after a nationwide blackout. A series of collapses in September led to consumer outcry.
The government cites fire incidents, and consumers demand solutions despite the privatisation of power sectors since 2013. The forum criticises disturbances and calls for grid stability measures.
Caution ahead: Oil prices edge up amid supply worries
Oil prices nudged higher as investors tread cautiously before key interest rate decisions and inflation reports.
Brent crude rose 0.3% to $76.29, while US West Texas Intermediate gained 0.4% at $71.58. Eyes are on the US CPI data influencing upcoming Fed policies. Concerns linger over supply glut and softer demand.
Also, an attack from Yemen on a chemical tanker lifted prices, causing fire and damage but no casualties.
