Nigeria’s Economic Landscape, Key Developments in Energy, Markets, and Business

1. NUPRC Enhances Oil Export Tracking to Combat Losses

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has launched initiatives to address oil export losses. These include the Advance Cargo Declaration Solution and Engineering Audit, aimed at real-time tracking and improved accountability in crude oil exports.

2. Landmark Africa Criticizes Demolition of Premises for Coastal Highway

Landmark Africa Group’s CEO, Paul Onwuanibe, revealed that the company paid over N10 billion in taxes, yet no compensation has been provided after their premises were demolished for the Lagos-Calabar Coastal Highway. The federal government claims the land was federally owned.

3. Nigeria’s Equity Market Sees N1.14tn Gain

Nigeria’s equity market gained N1.14 trillion last week, with the All-Share Index rising by 1.80%. The financial services sector led trading volume, contributing significantly to the market’s growth.

4. FG Pledges to Strengthen Capital Market for Economic Growth

Minister of State for Finance, Doris Uzoka-Anite, reaffirmed the government’s commitment to improving the capital market, emphasizing its role in achieving the administration’s economic goals, including a $1 trillion economy.

5. SMEs Threatened by Forex Crisis and Weak Naira

Economists warn that Nigeria’s forex policies and the depreciating naira are threatening the survival of Small and Medium Enterprises (SMEs), particularly those reliant on imports. The rising cost of foreign exchange has led to profit margin shrinkages for many businesses.

6. Starlist Launches Influencer Marketplace Across Africa

Starlist, a new influencer marketplace, has launched to connect brands and influencers across Africa. The platform aims to simplify collaboration and provide strategic support for successful marketing campaigns.

7. FG to Ramp Up Oil Production to 2m Barrels per Day

The federal government, through the NNPC, is working on plans to increase Nigeria’s oil production to 2 million barrels per day, ensuring the country meets its target while addressing its oil production challenges.

8. Smart Home Selection Guidelines Shared by Experts

Experts are advising Nigerians to be informed when selecting smart homes. Key factors such as compatibility, energy efficiency, security features, and professional installation are crucial for ensuring a successful smart home experience.

9. Veritas Kapital Assurance Wins Two Awards

Veritas Kapital Assurance was honoured at the 2024 Customer Service Excellence Awards, winning Insurance Brand of the Year and Best Customer Care Insurance CEO. CEO Dr. Adaobi Nwakuche received the Diamond Award for leadership. Mr. Arinze Adigwe collected the Gold Award for customer engagement.

10. Experts See Scrutiny Rise with Pension Fund Inclusion in Rebased GDP

Experts believe including pension fund administrators in the rebased GDP will increase sector scrutiny. The inclusion of pension funds, alongside sectors like the digital economy and health insurance, will enhance the financial sector’s visibility. Financial experts anticipate improved participation and public interest in the pension space.

11. Fire Service to Mandate Insurance for Buildings

The Federal Fire Service will now include fire insurance in its checklist for buildings. This decision follows a meeting with the National Insurance Commission (NAICOM) aimed at enhancing insurance compliance and penetration. The move is expected to improve risk mitigation, ensure insurance coverage for property damages, and contribute to Nigeria’s economic growth.

12. FirstBank Eyes Expansion to Ethiopia, Angola, Cameroon

FirstBank plans to expand into Ethiopia, Angola, Cameroon, and Côte d’Ivoire as part of its growth strategy across Africa. The bank sees opportunities in emerging markets with opening financial systems, particularly in Ethiopia, where new laws allow foreign banks to establish subsidiaries. This expansion follows FirstBank’s earlier moves into several West and Central African countries.

13. Recapitalisation, Regulatory Shocks, Bumper Profits Define Banking Sector in 2024

In 2024, Nigerian banks saw record profits amid recapitalisation efforts and regulatory changes. The Central Bank of Nigeria set new capital requirements, raising over N1.7 trillion. Regulatory actions, including dissolving bank boards and revoking Heritage Bank’s license, signaled stricter oversight. Analysts expect consolidation and job losses in 2025 as recapitalisation continues.

14. Fuel Prices May Rise as Crude Nears $80/Barrel

Fuel prices in Nigeria may increase as Brent crude hits $79.76 per barrel, up from $72.88 in December 2024. Geopolitical tensions and Russian oil sanctions are driving the surge. With rising diesel prices at depots, experts expect higher fuel costs as importers adjust to increased procurement expenses. The Federal Government’s 2025 oil price benchmark is $75 per barrel.

15. Firms Dump Discos, Generate 6,500MW Amid Power Outages

Around 250 companies, including Dangote, NNPCL, and Total, have left Nigeria’s national grid due to persistent blackouts, generating over 6,500MW of power on their own. Captive power generation permits have surged since 2023, with the grid struggling to provide stable electricity. The Minister of Power highlighted the higher costs of self-generation, while experts blame grid instability for the shift.

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