Echotitbits – Nigeria News

Tag: Nigeria economy

  • CBN projects FX reserves could hit $51bn by 2026

    CBN projects FX reserves could hit $51bn by 2026

    2025-12-31 08:21:00

    Figures cited by PUNCH show the Central Bank of Nigeria expects external reserves to climb to about $51.04bn in 2026, up from a projected $45bn in 2025, based on assumptions about FX-market conditions and inflows.

    The forecast is tied to the CBN’s 2026 macro outlook, leaning on expectations of reduced pressure in the FX market, improved export earnings, and higher remittance inflows.

    CBN also points to refining capacity and broader reforms as potential tailwinds that reduce import pressure and support reserve accumulation over time.

    Validation: Channels Television said “The external reserves are projected at $51.04bn in 2026, compared with $45.01bn in 2025.” and The Guardian reported “external reserves… to rise to US$51.04 billion.”

    Echotitbits take: This projection is optimistic—and markets will judge credibility by liquidity and transparency. Watch the drivers: oil receipts, diaspora remittances, and whether FX spreads truly narrow across official and parallel windows.

    Source: The Punch — 31 December 2025 (https://punchng.com/fx-reserves-to-hit-51bn-by-2026-cbn/)

    The Punch 31 December 2025

    Photo Credit: The Punch

  • Nigeria’s FDI jumps to $720m in Q3 as investor appetite rebounds

    Nigeria’s FDI jumps to $720m in Q3 as investor appetite rebounds

    2025-12-31 08:14:00

    In an update published by PUNCH, the Central Bank of Nigeria’s balance-of-payments data shows foreign direct investment rose to about $720 million in Q3 2025—well above the prior quarter—signalling stronger long-term capital flows.

    The report links the uptick to improved long-term equity participation and reinvested earnings, with broader macro indicators providing a friendlier backdrop for foreign investors.

    While portfolio flows can swing fast, FDI is the stickier vote of confidence—typically tied to longer-horizon commitments and real-economy decisions.

    Validation: Radio Now said “Foreign direct investment into Nigeria jumped sharply to $720 million in the third quarter of 2025, up from $90 million in the second quarter.” and The Will reported “jumped to $720m in Q3 2025… marking the highest level this year.”

    Echotitbits take: The headline is strong, but sustainability matters more than a one-quarter spike. Watch Q4/Q1 continuity, sector breakdowns, and whether FX-market stability remains credible enough for long-term investors.

    Source: The Punch — 31 December 2025 (https://punchng.com/nigeria-attracts-720m-fdi-as-foreign-investment-rebounds/)

    The Punch 31 December 2025

    Photo Credit: The Punch

  • NIRSAL says 2025 credit guarantees crossed ₦100bn as banks expand agribusiness lending

    NIRSAL says 2025 credit guarantees crossed ₦100bn as banks expand agribusiness lending

    2025-12-29 09:00:00
    According to Punch, NIRSAL Plc says it is closing out 2025 with more than ₦100bn in approved credit guarantees for agriculture and agribusiness loans, positioning the guarantees as a de-risking tool that helps banks back projects they would normally avoid.

    The milestone is framed as part of a broader push to widen formal credit into farming, processing, logistics and market access—areas often constrained by price volatility, climate risk and weak collateral structures.

    The claim lands amid persistent concerns about food inflation and supply disruptions, where policymakers and lenders are searching for instruments that can crowd-in private capital rather than rely solely on direct public spending.

    The core message is that credit can scale faster when the risk is shared—especially for value-chain activities that are commercially viable but too risky for traditional underwriting.

    BusinessDay also reported the milestone, noting that NIRSAL “approved credit guarantees covering more than ₦100 billion… in 2025,” while The Guardian similarly wrote that NIRSAL “has closed 2025 with over ₦100 billion in approved credit guarantees.”

    Echotitbits take: If the guarantee pipeline is real and transparent, the next question is where the credit actually landed—by crop, region and borrower type—and what default ratios look like. Watch for independent portfolio data and sector-by-sector breakdowns.

    Source: BusinessDay — https://businessday.ng/news/article/nirsal-guarantees-record-%E2%82%A6100bn-in-agriculture-lending/#:~:text=The%20Nigeria%20Incentive%2DBased%20Risk,risk%2Dsharing%20tools%20to%20expand – December 29, 2025
    BusinessDay 2025-12-29

    Photo Credit: BusinessDay

  • SEC flags ₦753bn commercial-paper surge as firms tap short-term funding

    SEC flags ₦753bn commercial-paper surge as firms tap short-term funding

    2025-12-29 09:00:00
    Reporting by The Nation indicates Nigeria’s capital-market regulator says companies raised over ₦753bn through commercial paper issuance within months, pointing to renewed appetite for short-term, non-bank funding as businesses cover working-capital needs.

    Commercial paper has increasingly become a bridge instrument for corporates facing tight credit conditions, higher borrowing costs and volatile cashflows, especially in manufacturing and supply chains.

    SEC leadership has tied the momentum to broader market-structure reforms, arguing that faster settlement and deeper participation can improve liquidity and reduce risk for investors.

    In effect, the regulator is projecting the surge as evidence of confidence in market plumbing and regulation, even as macro pressures remain.

    The Whistler quoted the SEC DG saying, “Commercial paper issuance remained vibrant, with over N753bn raised…,” while The Guardian quoted him on settlement reforms: “By shortening the settlement period, we have enhanced liquidity….”

    Echotitbits take: The key watch item is pricing and rollover risk. If firms keep issuing at very high yields, the market may be masking stress rather than solving it. Watch for defaults, delayed redemptions, and whether issuers shift to longer-dated bonds.

    Source: BusinessDay — https://businessday.ng/markets/article/nigeria-records-over-n753bn-commercial-paper-issuances-in-6-months/?amp – December 29, 2025
    BusinessDay 2025-12-29

    Photo Credit: BusinessDay

  • FAAC review flags weak responses from firms in road tax credit scrutiny

    FAAC review flags weak responses from firms in road tax credit scrutiny

    2025-12-29 09:00:00
    In an update published by Punch, FAAC’s post-mortem sub-committee reviewing the Road Infrastructure Tax Credit Scheme reportedly received responses from only three of seven companies contacted, raising fresh questions around transparency and project accountability.

    The scheme allows companies to build eligible roads and offset costs against future tax liabilities, making it a large fiscal lever that directly affects distributable revenue.

    The central issue now is governance: whether project valuation, scope, and delivery milestones align with tax credits claimed across participating firms.

    ThisDay reports that “a combined $577.6 million and N822.3 billion were utilised under the scheme,” while ARISE News says the panel is probing “the scale of deductions, transparency of project execution and accountability.”

    Echotitbits take: Tax-credit infrastructure can be smart—if procurement and monitoring are airtight. If not, it becomes a quiet drain on FAAC. Watch for the committee’s recommendations and whether disclosure rules get tougher.

    Source: The Punch — December 29, 2025 (https://punchng.com/faac-flags-poor-responses-in-road-tax-scheme/)
    The Punch 2025-12-29

    Photo Credit: The Punch

  • FX reserves climb by $4.39bn in 12 months, CBN data shows

    FX reserves climb by $4.39bn in 12 months, CBN data shows

    2025-12-29 09:00:00
    Figures published by Punch indicate Nigeria’s external reserves rose by $4.39bn between December 23, 2024 and December 23, 2025, reaching about $45.24bn over the period, based on data sourced from the Central Bank of Nigeria.

    The rise adds to a late-2025 picture of stronger buffers, with other market trackers also placing Nigeria’s gross reserves above $45bn in December and describing it as a multi-year high.

    Beyond the headline number, the key question for businesses and households is whether the reserve build-up translates to steadier FX supply and narrower spreads across official and parallel channels.

    MoneyCentral reports that “Gross dollar reserves stood at $45.04 billion as at December 4, 2025,” citing CBN data, while TELL notes reserves “hit $45bn” in early December 2025.

    Echotitbits take: Reserves are a confidence barometer—but they can rise and still feel “tight” if FX demand stays hot. Watch whether the trend holds into Q1 2026 and whether gaps between rates meaningfully narrow.

    Source: The Punch — December 29, 2025 (https://punchng.com/fx-reserves-add-4-39bn-in-one-year/)
    The Punch 2025-12-29

    Photo Credit: The Punch

  • MWUN warns ports employers: casualisation is ‘industrial manipulation’ hurting workers

    MWUN warns ports employers: casualisation is ‘industrial manipulation’ hurting workers

    Photo Credit: The Punch
    2025-12-28 09:00:00

    In an update published by PUNCH, the Maritime Workers Union of Nigeria (MWUN) renewed its opposition to casualisation in ports and related maritime operations, warning that the practice erodes permanent employment and basic worker protections.

    Union officials argue that short-term contracting and non-standard employment reduce welfare, depress wages, and weaken safety compliance across high-risk port environments.

    MWUN urged regulators and employers to align labour practices with local and international decent-work standards.

    PUNCH quoted MWUN’s leadership saying, “The union must act fast to stop this ugly trend.”

    Echotitbits take: Ports productivity and labour stability go together. Watch for whether regulators push enforceable standards—especially around contract duration, safety training, and union access.

    Source: The Punch — December 28, 2025 (https://punchng.com/maritime-workers-kick-against-casualisation/)

    The Punch December 28, 2025
    https://punchng.com/maritime-workers-kick-against-casualisation/

  • FAAC windfall helps states cut bank exposure by over ₦547bn in one year

    FAAC windfall helps states cut bank exposure by over ₦547bn in one year

    Photo Credit: The Punch
    2025-12-27 06:00:00

    In a review published by Punch, Nigerian states and local governments reportedly reduced bank borrowing by about ₦547.5bn over the past year as federation revenue inflows improved.

    The story suggests higher allocations gave some subnational governments room to refinance or repay costly short‑term facilities, easing pressure on monthly deductions and debt‑service burdens.

    However, analysts note that debt reduction is only durable if states also strengthen internally generated revenue and curb recurrent leakages, especially as oil‑linked inflows remain volatile.

    Echotitbits take:
    This is a rare “good-news” fiscal signal, but it can reverse fast if FAAC cools or spending balloons. Watch the next quarter’s allocations, states’ IGR trends, and whether repayment coincides with better capital spending rather than fresh borrowing.

    Source: The Punch — December 27, 2025 (https://punchng.com/states-lgs-repay-n547-5bn-bank-debts/)
    The Punch December 27, 2025

  • NNPC Directors’ Pay Jumps to N4.1bn, Renewing Corporate Governance Questions

    NNPC Directors’ Pay Jumps to N4.1bn, Renewing Corporate Governance Questions

    Photo Credit: The Punch
    2025-12-26 07:20:00

    In a report published by *PUNCH*, the Nigerian National Petroleum Company (NNPC) Limited’s directors’ fees and expenses reportedly increased sharply, reigniting scrutiny of cost discipline and transparency at the state-backed energy giant.

    The report is likely to energise debate around value-for-money, board oversight standards, and how corporate governance practices are evolving under the “commercial” NNPC Limited framework.

    For citizens, the optics matter: in a period of tight public finances and cost-of-living strain, governance headlines at strategic national companies quickly turn into political accountability tests.

    Market watchers will look for clearer disclosure context—what drove the increase, how it compares to peer benchmarks, and whether board performance metrics are publicly defensible.

    *PUNCH* reported directors’ pay “soars 58% to N4.1bn.”

    Echotitbits take: Governance credibility is part of energy-sector reform. Watch for fuller annual-report disclosures, audit commentary, and whether oversight bodies demand stronger explanations for board-related cost movements.

    Source: The Punch — Dec 26, 2025 (https://punchng.com/nnpc-directors-pay-soars-58-to-n4-1bn/)

  • FG’s Deficit Funding: N6.1trn Raised Locally in Six Months

    FG’s Deficit Funding: N6.1trn Raised Locally in Six Months

    Photo Credit: The Punch
    2025-12-25 09:10:00

    In a budget-performance update cited by The Punch, Nigeria’s federal government reportedly raised about N6.10 trillion from domestic sources in the first half of 2025 to help plug a wide fiscal gap. The report points to a deficit of roughly N5.70 trillion, with financing largely driven by local borrowing instruments.

    The same performance data indicates debt service pressure remains heavy, with large outflows to service obligations even as revenues lag spending needs. That combination—high deficits and high debt service—continues to compress fiscal space for social and capital priorities.

    The report also suggests the borrowing mix leaned heavily on bonds and other local issuances, reinforcing the concern that domestic credit may be crowded toward government paper instead of private-sector lending.

    Corroborating the same Budget Office picture, another outlet reported the government had to finance the deficit through “domestic borrowing… of N5.70tn” and proceeds including “privatisation… N64.92bn,” while a separate report noted “debt service was N4.44tn,” underscoring the weight of repayments in the fiscal structure.

    Echotitbits take: Nigeria’s deficit story is increasingly a debt-service story. Watch for (1) whether revenue reforms lift the non-oil base fast enough, and (2) whether domestic borrowing costs ease—because a sustained high-rate environment makes deficits more expensive and squeezes development spending.

    Source: The Punch — December 25, 2025 (https://punchng.com/budget-deficit-fg-raises-n6tn-locally-in-six-months/)

    The Punch 2025-12-25