BUSINESS REVIEW: Manufacturers spend N71.22 billion on alternative energy sources; CBN increases lending rate to 13%; other stories

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Hello and welcome to this week’s business roundup. Here we bring you highlights of events that happened during the week – from capital markets to mainstream business activities, without forgetting the tech/economy build.

Here are the headlines:

• Nigerian farmers now owe CBN via N1trn as many refuse to repay
• Nigeria approves Elon Musk’s Starlink network
Manufacturers spend N71.22 billion on alternative energy sources
• CBN raises lending rates to 13% for the first time in 2 years

Summary:

The Central Bank of Nigeria (CBN) has announced that its loans to farmers have now passed the N1 trillion mark amid rising loan defaults.

A CBN official in Oyo state recently sounded the alarm because many farmers now see loans disbursed under the Anchor Borrowers Program as their share of the national pie.

Data from the CBN Monetary Policy Committee communiqué shows that the ABP loan rose to N1.01 trillion by the end of April.

The Nigerian government has approved the Starlink network in the country.

The South African-born billionaire confirmed the development in a statement posted to his Twitter handle – @elonmusk – on Friday night.

He said Nigeria’s approval was accompanied by Mozambique’s. The Philippines also approved the network on Friday.

The Manufacturing Association of Nigeria (MAN) has announced that its members in the country spent a total of N71.22 billion on purchasing alternative energy diesel in 2021.

It found its members saved N10.69 billion on those costs compared to spending N81.91 billion in 2020.

However, MAN President Ing. Mansur Ahmed, making the announcement in Lagos on Thursday, noted that the cost of providing alternative energy is still very high.

For the first time in two years, the Central Bank of Nigeria (CBN) has raised the lending rate for banks to 13 percent.

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has decided to raise the monetary policy interest rate, also known as the lending or interest rate, from 11.5% to 13% for the first time in order to tame inflation.

This follows a long and drawn out deliberation among the six members of the committee, which is the highest decision-making body of the bank’s CBN.

Also Read: BUSINESS ROUNDUP: Customs Introduce Electronic Valuation Policy Weak naira pulls Nigeria’s inflation rate to 16.82%; other stories

On NSE ROUNDUP: Investors make N503.5Bn in 8 hours as Nigerian capital market continues its uptrend

Investors in the Nigerian capital market pocketed N503.5 billion on Friday after the share capitalization rose 1.75 percent at the end of the day.

After eight hours of trading, the value of investments in the capital market rose to N29.15 trillion today from N28.65 trillion recorded on Thursday.

The All-Share Index rose 933.98 basis points to 54,085.3 from 53,151.32 the previous day.

Investors traded 208.08 million shares worth N5.52 billion in 4,898 transactions on Friday.

In the tech sceneGrey, Cloud Fret, FlexID, Broadcom, ShEquity, Starlink, Bloom were some of the names making headlines this week.

31-year-old IT solutions provider Broadcom earlier this week initiated the move to acquire VMware for $61 billion

A Nigerian fintech startup, Gray, also expanded into East Africa during the week through a new partnership with single-API payments platform Cellulant.

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