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Naira weakens to 1,541/$

by Folarin Kehinde
written by Folarin Kehinde

The Nigerian naira weakened to N1,541.36/$ on the first day of trading in the New Year.

According to the NFEM rate data available on the website of the Central Bank of Nigeria, this is a 0.36 per cent depreciation compared to the closing rate of 2024 which was N1,535.82/$.

Some authorised dealers quoted the dollar at N1,545/$, an improvement compared to the N1,550/$ quoted on Tuesday while others quoted the naira at N1520/$ at the close of trading on Thursday.

At the parallel market, the naira closed trading at N1,655/$ compared to N1670/$ on Tuesday.

Some authorised dealers quoted the dollar at N1,545/$, an improvement compared to the N1,550/$ quoted on Tuesday while others quoted the naira at N1520/$ at the close of trading on Thursday.

At the parallel market, the naira closed trading at N1,655/$ compared to N1670/$ on Tuesday.

The naira had recorded a 40.9 per cent depreciation in 2024 when compared to the official rate at the close of 2023, which stood at 907.11/$.

The significant depreciation comes amid the CBN’s introduction of several foreign exchange policies aimed at enhancing market transparency and attracting foreign investors.

The latest reform was the introduction of the Electronic Foreign Exchange Matching System which set new guidelines for authorised Foreign Exchange dealers in December. This introduction saw the naira gain some semblance of stability.

Meanwhile, in the money market, the Nigerian Interbank Offered Rate experienced downward movements across all maturities, signalling liquidity in the banking system. However, the Open Repo Rate fell by 0.61 per cent to 26.69 per cent, while the Overnight Lending Rate decreased by 0.55 per cent to 27.25 per cent.

Trading in the secondary market for FGN bonds was subdued, resulting in a slight uptick in the average yield to 19.76 per cent. In Nigeria’s sovereign Eurobonds market, buy pressure across the short, mid, and long ends of the yield curve led to a 6 bps decrease in the average yield to 9.62 per cent.

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Nigerians to pay more as Telcos propose 100% tariff hike

by Folarin Kehinde
written by Folarin Kehinde

“According to Toriola, the proposed tariff hike is necessary for the sustainability of the industry, which has been facing significant financial pressures due to rising operational costs.”

Nigerian telecommunications companies have proposed a 100 per cent increase in their tariffs, pending approval from the government.

The proposal, which has been submitted to the Nigerian Communications Commission, aims to address rising operational costs, including inflation and increased service delivery expenses.

The disclosure was made by the Chief Executive Officer, MTN Nigeria, Karl Toriola, during an interview on Arise TV on Thursday.

However, the CEO expressed that it remains uncertain whether the Nigerian Communications Commission—the telecom regulator, will approve the proposal.

According to Toriola, the proposed tariff hike is necessary for the sustainability of the industry, which has been facing significant financial pressures due to rising operational costs.

“We’ve put forward requests of approximately 100 per cent tariff increases to regulators. I doubt they’re going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country,” Toriola said.

Despite the challenges, Toriola expressed optimism that regulators would make the right decision, taking into account the realities of the sector.

The CEO emphasised that the focus is on ensuring the long-term sustainability of the industry, rather than short-term profitability.

“I believe we’re all on the same side, the policymakers, the regulators, our Chairman of ALTON, Gbenga Adebayo, and the industry. We’re united because we share concerns about a few fundamental issues. First, human rights, are critical to driving any economy. Without a sustainable industry, the broader economy and the well-being of the people will be negatively impacted.”

The proposal comes amid rising costs for telecom companies, driven by factors such as inflation, exchange rate fluctuations, and the increasing price of key operational inputs like diesel, power generation, and raw materials.

Toriola highlighted the pressure these rising costs have put on telecom businesses, making it difficult for many companies to maintain profitable operations.

Earlier this week, operators issued a statement warning that service disruptions are imminent unless tariffs are adjusted to account for escalating operational costs.

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Engr. Gbenga Adebayo described the telecom sector as “under siege,” citing soaring operational costs driven by inflation, volatile exchange rates, and rising energy prices.

He noted that despite these challenges, tariffs have remained unchanged, leaving operators struggling to maintain quality service and expand their networks.

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Business

2025: Anxiety as Nigerians to pay 40 per cent more for calls, data

by Folarin Kehinde
written by Folarin Kehinde

There is anxiety over a possible 40 percent telecommunications service tariff hike in Nigeria this New Year.

This comes as telecommunications subscribers in Nigeria, under the aegis of the National Association of Telecoms Subscribers (NATCOMS), rejected the proposed telecoms tariff hike.

The subscribers said it would be insensitive for the Nigerian government to approve a telecoms tariff hike amid the existing economic hardship.

LEADING REPORTERS gathered that in recent days, there has been widespread speculation of a 40 percent telecoms hike.

Accordingly, this means that all telecom services offered by operators such as MTN, Glo, Airtel, and others would increase by 40 percent. For instance, a data bundle priced at N1000 would rise to N1,400 in the new tariff regime expected to kick off in 2025.

Meanwhile, official sources in the Nigerian Communications Commission (NCC) refuted the tariff hike claims.

This comes at a time when telecom operators, in a recent statement, threatened a shutdown if tariffs are not increased.

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2025: Subscribers reject fresh telecoms tariff hike in Nigeria

by Folarin Kehinde
written by Folarin Kehinde

Telecommunications subscribers have vehemently rejected a proposed 40 per cent telecom service tariff hike in Nigeria expected to kick off in 2025.

The National Exco of the National Association of Telecoms Subscribers, NATCOMS, made this known in a communique jointly signed by its National president, Chief Adeolu Ogunbanjo, and the Secretary, Barr. Bayo Omotubora, on Tuesday.

The stance by the subscribers comes amid widespread claims of a planned telecom service tariff hike in 2025.

Reacting, NATCOMS said any plan to hike telecom service tariffs would be very insensitive amid the current economic hardship faced by Nigerians.

The association urged telecom operators to seek another alternative instead of a tariff hike to address rising operator costs.

“The National Exco of the National Association of Telecoms Subscribers (NATCOMS) held an emergency meeting on the 31st of December, 2024, on the planned tariff hike of telecommunication services. A unanimous resolution arising therefrom is our total objection to the planned tariff hike.

“The Nigerian Communications Commission (NCC), as recently published in both the print and electronic media, gave an approval to the Telecommunication Service Operators to hike their tariffs, and the approved increment would see the current tariffs rise by about 40 percent.

“This Association considers the decision of the NCC as very insensitive and not in the interest of Telecoms Services Consumers.

“The unrelenting rise in prices of goods and services in the country has made life extremely difficult for the generality of citizens who are the consumers of telecom services. The new increment is, therefore, one additional burden too many.
Under the new tariffs regime, a voice call will rise from N11.00 to N15.40 per minute. Short message services will jump from N4.00 to N5.60 and “One GB data bundle will move from N1,000 to N1,400. This represents additional digital costs consumers will have to square up with at the beginning of a new year, among other harsh economic realities of Nigeria today. This, undoubtedly, is against public interest, contrary to the false narrative of NCC that described the recent adjustments as pro public interest.

“This Association sees the increment as an official policy to price telecom services out of the reach of the generality of the citizens of this country.

“The cumulative effect of the pending suit and the public outcry prompted the federal government to suspend the implementation of the excise duty charge, but the charge is now part of the controversial tax reform bills now pending before the National Assembly.

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With God’s help, we’ll reduce inflation from 34.6% to 15% in 2025 – FG

by Folarin Kehinde
written by Folarin Kehinde

President Bola Tinubu has again said that his administration is focused on reducing inflation from 34.6 percent to 15 per cent by 2025.

Addressing Nigerians in a New Year Day broadcast, the president said the high cost of food and essential drugs has remained a significant concern for several households across the country.

He said that in the new year, he is committed to intensifying all efforts to reduce the cost of living and through an improved food production.

Tinubu also said that his administration would promote local manufacturing of essential drugs and other medical supplies.

His words, “We are resolute in our ambition to reduce inflation from its current high of 34.6 per cent to 15 per cent. With diligent work and God’s help, we will achieve this goal and provide relief to all our people.”

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FG to spend N1.9b to fuel State House generators in 2025

by Folarin Kehinde
written by Folarin Kehinde

It appears there is no hope for an improved power supply to Nigerian households in 2025, as the federal government has made a provision of N1,989,579,379 to fuel State House generators during the course of the year.

This is higher than the amount budgeted for the same item in 2024 (N37,959,406), 2023 (N30,678,552), 2022 (N30,678,552), and 2021 (N45,678,552) combined by a staggering 1,272 per cent and 5,143 per cent higher than the N37,959,406 budgeted for the same item last year.

This high budget to fuel generators at the State House is indicative of a government that has lost hope in its power sector.

Power, as important as it is, has been a major challenge for Nigeria over the years, even though the country has made significant investments in the sector between 2021 and 2024. The budget for the power sector grew by 129.42 per cent, from N133.479 billion in 2020 to N306.23 billion in 2022, with a focus on capital expenditures for infrastructural development. In 2023, the government budgeted N258.494 billion for the power sector, with N251.609 billion allocated for capital expenditure.

It is estimated that between 2021 and 2024, Nigeria spent around N1.2 trillion on the power sector.

However, this has not resulted in significant improvements in power supply to the citizens, as homes and businesses are subjected to frequent blackouts.

In 2024 alone, the national power grid collapsed 12 times, an average of once every month.

Many businesses are shutting down, while others are finding their way out of the country because they can no longer bear the heavy costs of generating their own power.

Recently, the Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Olusola Obadimu, raised the alarm that businesses in the country suffer an annual $29 billion revenue loss due to inadequate power supply.

The sector is said to be fraught with challenges such as inadequate power supply, unreliable energy infrastructure, and high electricity tariffs.

These challenges not only hamper the growth of industries but also undermine the ability of the country to attract investments and create jobs.

It is, however, heartening to note that in the 2025 budget proposal, a total sum of N2,086,790,002,565 has been earmarked for the Ministry of Power, of which a princely sum of N2,076,305,541,394 was set aside for capital projects.

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Business

Nigeria Ranks First in Global Cryptocurrency Adoption

by Nelson Ugwuagbo
written by Nelson Ugwuagbo

Nigeria has once again emerged as the global leader in cryptocurrency ownership and adoption, according to a newly released report by blockchain and Web3 software giant Consensys.

The report, released on Tuesday, highlighted Nigeria’s significant growth in crypto adoption, building on its already high levels recorded last year. Joseph Lubin, Co-Founder of Ethereum and CEO of Consensys, stated that Nigeria and India have witnessed continued increases in crypto ownership, with Nigeria standing out for its strong trust in internet services that handle user data, reaching a remarkable 98%.

The report revealed that cryptocurrency awareness in Nigeria remains overwhelming, with 99% of respondents indicating familiarity with crypto. Additionally, 77% of Nigerian respondents demonstrated the highest level of understanding of cryptocurrencies among the surveyed countries.

“A desire for more ownership was evident, with 84% of Nigerian respondents owning at least one crypto wallet. Among those aware of NFTs, 94% plan to acquire them within the next year,” the statement noted.

The report also underscored Nigerians’ commitment to data privacy and decentralization. It revealed that 92% of Nigerians want greater control over their online identities, while 87% seek more control over internet platforms that use their data. Over half of the respondents believe decentralization could improve traditional banking and social media platforms.

“Nigerians also lead in understanding the concept of decentralization, with 80% awareness,” the statement added.

This year’s report expanded on the 2023 survey, reaching over 18,000 individuals aged 18-65 across 18 countries in Africa, the Americas, Asia, and Europe, further solidifying Nigeria’s position as a key player in the global cryptocurrency ecosystem.

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Nigerians lament as Moniepoint failed transactions hits harder after CBN’s #1bn fine on regulation

by Folarin Kehinde
written by Folarin Kehinde

Customers banking with moniepoint throng different branches of their banks on Monday morning to complain over failed transactions made over the weekend.

One of the customers who preferred anonymity explained that one of his colleagues sent over #200,000 to her and transferred the receipt showing successful but over 3 days now the money has not dropped and when she visited her bank they made a general announcement that transactions made between Friday and Sunday via moniepoint will show successful but it has not left their account hence they should lodge their complain with moniepoint.

Meanwhile, it could be recall that
the Central Bank of Nigeria’s (CBN) recently increased scrutiny of fintech startups, two of the country’s most prominent unicorns, Moniepoint and OPay, were fined ₦1 billion each in the second quarter of 2024, sources with direct knowledge of the matter told TechCabal. While several other fintech companies were also penalized, the two firms were the hardest hit.

The penalties followed a routine CBN audit of the fintech sector, which revealed compliance issues. According to two sources familiar with the process, these regulatory checks are a standard procedure for banks and financial institutions under CBN oversight.

At least four other fintech companies were similarly penalized, though the details of these fines remain unknown.

The CBN has increasingly relied on fines to enforce regulatory compliance. In 2023, Nigerian banks paid a combined ₦678 million in penalties. In October 2024, the central bank and the Securities and Exchange Commission (SEC) imposed a ₦15 billion fine on ten commercial banks, including Zenith and GTBank, for various infractions in the first half of the year.

Until recently, Nigeria’s rapidly growing fintech sector largely operated without CBN interference. However, the rapid expansion of fintechs like OPay and Moniepoint, which now serve millions of users, has invited greater scrutiny. OPay, for instance, claims a customer base of around 40 million, while Moniepoint, which processed 5.2 billion transactions in 2023, does not disclose specific customer numbers but is similarly large.

As these fintech giants have grown in influence, so too have concerns over their regulatory frameworks. A significant issue is that many fintechs, including OPay and Moniepoint, still operate under microfinance bank licenses. Originally intended to support micro, small, and medium enterprises, these licenses have allowed the companies to expand rapidly and service millions of customers. However, with that expansion has come heightened concern that the current licensing framework is inadequate to safeguard customers effectively, according to one source.

Beyond licensing, the CBN has also expressed concerns about the fintechs’ compliance with Know Your Customer (KYC) processes. In April 2024, the central bank imposed a two-month ban on customer onboarding for several fintech companies, including Kuda Bank and Palmpay, citing non-compliance with KYC standards. The ban forced fintechs to overhaul their onboarding procedures and commit to improving their compliance measures.

Moniepoint declined to comment on any part of this story.

“We categorically refute the claims that OPay Digital Services was fined by the Central Bank of Nigeria to the tune of ₦1 billion for regulatory infractions,” OPay said in a statement to TechCabal. “These claims are entirely false.”

Customers are yet to receive their funds back at time of filing this report.

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Expect better economy next year, Edun assures Nigerians

by Folarin Kehinde
written by Folarin Kehinde

Nigerians yesterday got an assurance of a better economy next year from the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.

The minister expressed optimism that the country was gradually moving away from factors that has impacted negatively on its economy and the citizenry.

Edun gave the assurance at a meeting with the House of Representatives Joint Committee on National Planning and Economic Development and Finance on the proposed N47.9 trillion 2025 Budget.

The minister gave an overview of next year’s Appropriation Bill.

He said that going by the projection on increased revenue next year and as other measures being taken by the government, there are indications that the country was moving away from factors that had in the past impacted negatively on the Nigerian economy and affected its people.

Edun said the signs show positive indications of a positive performance of the country’s economy in 2025.

He said: “We do have market pricing and foreign exchange that has resulted in a situation whereby upwards of five per cent of the Gross Domestic Product (GDP) has been lost to plurality of factors benefiting just a few and created long-sighted incentives against growth and investment.”

The minister assured that as government revenue goes up, it will help lower debt servicing and borrowing because as the economy improves, it will become more competitive.

He said: “The deficit of that increase which we hope to achieve less but right now we are assuming is about 9.3 trillion naira in new borrowings and the debt service of about two trillion naira.

“In a nutshell, that backdrop gives you the optimism that the 2025 budget estimates, particularly the one on revenue, will be achieved and the economy will be strong. It will fast up to an inclusive and sustainable growth”.

Chairman of the House Committee on National Planning and Economic Development, Ibrahim Ayokunle (APC, Ogun) asked the minister to give an appraisal of the economy.

Ayokunle said: “But briefly, as we have said, what is the state of our economy, number one, as in our finances. Then number two, in terms of our revenue so far with the projections we have for 2025.

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Transcorp Hilton celebrates Christmas in Grand style with Tree Lighting Ceremony

by Folarin Kehinde
written by Folarin Kehinde

Transcorp Hilton Abuja has celebrated another Christmas celebration in glitz and glamour with the tree lighting ceremony.

The General Manager of Transcorp Hilton Abuja Mr Jorg Potreck while speaking over the weekend in Abuja
stated that the tree lighting ceremony symbolises hope, unity, and joy for Nigerians which also reflects the joy, love, and hope that the season brings.

“As we stand here, let us take a moment to appreciate the true spirit of Christmas – the spirit of giving, of caring for one another, and of spreading love. Whether you have been busy preparing for the Year end business, the festive season or just simply enjoying the sights and sounds of the season, let’s remember that the heart of Christmas is found in the connections we share and the kindness we offer.”

Meanwhile, the Managing Director/CEO of Transcorp Hotels Plc Dupe Olusola explained that in the spirit of Christmas, transcorp Hilton will be offering their services at discounted rates to her teeming audiences to enjoy the season to its fullest.

“So, you’ll see already we’re starting to talk about our Christmas offers. You know, we want
families to come here. We want to give discounts to people to bring their families here and
enjoy the leisure.

“So, you know, you can actually shop for gifts, beads, you know, nice things that are locally made. So, we’re really trying to promote more of Nigeria and more of Africa.

“We do great discounts. Particularly at Christmas, we’ll have a festive period, we have special
offers. And all the way into the next year as well”.

She added that as the year progresses, Transcorp Hotels will continue to deliver on world class services in hospitality and expansion of rooms and their event centre.

“We’re going to finish very strong, we’re still happy about the numbers that we’ve achieved so far. Our occupancy, we have at over 83%, you know, for a 677-room hotel. That is exceptionally good.
It means that almost every day of the week we are busy. In terms of our profitability as well, we have
very strong numbers.

“But every year, you know, we strategize and say how can we do things differently to make sure
that we’re running efficiently as a business. We’re keeping an eye on our costs. And we’re being
very innovative and ensuring that we’re bringing new strategies.

“We acquired more land. And now what we’re doing is working on a redesign to ensure that we
can actually deliver the 315 rooms. But there’s so much that we’re looking at.

“In addition to the event center, we’re also excited about actually expanding here. Because one of the things we’ve seen, like I said, we’re doing 83%, which means that almost all our rooms, we’re having to turn back guests. So, now we want to focus very strongly on actually building an extension here.”

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