Why is Nigeria’s monetary orthodoxy not saving it from escalating inflation?
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has increased the benchmark interest rate (MPR) by 25 basis points to 18.75% from 18.5%, highest interest rate in 22 years. This is the conclusion of the first meeting under President Bola Tinubu, the first under the chairmanship of the acting governor FolashadeShonubi. […]
Nigeria’s Inflation reaches a 20 year high
The National Bureau of Statistics (NBS) unveiled the inflation data for the month of July, shedding light on the evolving economic landscape. Headline inflation rate for July 2023 surged to 24.08%, marking a substantial increase from the June 2023 rate of 22.79%. This translates to an uptick of 1.29% points in the span of just […]
Nigeria’s National Oil Company borrow US $3 billion from Afreximbank to support the Naira
The Nigerian National Petroleum Company Limited recently announced it has secured a US $3 billion emergency loan from Afreximbank. The loan will be used in supporting the ongoing fiscal and monetary policy reforms of the President. The Naira has been on free fall since the aggregation of all the Central Bank of Nigeria’s exchange rate […]
Buy Now, Pay Later: Buhari’s 8 years of fiscal policy
The recent revelation that President Buhari had presided over a N22 trillion (US $51 billion) borrowings from the Central Bank of Nigeria (CBN) is a classic summary, and encapsulates fiscal policy in the last eight years – buy now, pay later. After the revelation, the rubber stamp Senate approved the President’s controversial ways and means […]
Skyrocketing Ticket Prices, Trapped Funds and Worsening International Investment Conditions
Travelers from Lagos and Abuja international airports in the last three months have been confronted with about 300% – 400% difference in prices compared to those that fly from Cotonou airport in Republic of Benin and Kotoka airports in Accra, Ghana. It became common for Nigerians to pay an average of about US $2000 – […]
Nigeria’s Crude Oil Production dropped nearly 40,000 a day in March
Nigeria’s crude oil output dropped by 38,102 barrels per day in March 2023, translating to a cumulative loss of about 1,181,162 barrels in the month, and signaled the first plunge in oil production in seven months. In monetary terms, average cost of Brent, the international benchmark for Nigeria’s oilwas US $78.43/barrel. Therefore, by losing 1,181,162 […]
Nigeria’s Inflation and Exchange Rate to the US $ under President Buhari
April inflation numbers, the last before President Buhari left office, rose to 22.2%, from 22.04% in March, fourth consecutive monthly increase and the highest inflation rate since September 2005. Though the rate of increase has slowed, inflation has not peaked yet.The graph below shows the dynamics of inflation and the Naira’s exchange rate to the […]
Uncharted: How to Navigate the Future
Author – Margaret Heffernan This period, and this season, Nigeria is in Uncharted territory, so it is fitting to read a book with that title. What Heffernan has done in this book is quite interesting. Economists, and certainly me, look out for patterns because it helps us to increase the power of predictability and reduce […]
The Innovation Mandate: The Growth Secrets of the Best Organisations in the World
Author – Nicholas J. Webb While reading this book, I also decided to check the author on the internet. In one of his speeches, he said something remarkable, ‘That, of all those that give thought leadership on innovations, he is the only that has several patents’. It is that extension of confidence and clarity that […]
The Hard Thing About Hard Things – Building a Business When There Are No Easy Answers
Author – Ben Horowitz If you have just started a business, just became a CEO, or involved in some sort of way in growing and building a business, do nothing else until you have finished reading this book. This book is an articulation of the author’s journey as an engineering staff of Silicon Graphics, NetLabs, […]