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Oil And Gas Amounts For 92.9% Of Exports Earnings In Q2

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Despite calls for diversification of Nigeria’s revenue base to other sectors like manufacturing and agriculture, oil and gas accounted for 92.9 per cent of the country’s export earnings during the second quarter of 2016.

Specifically, out of the N1.872 trillion of export earnings by the Federal Government during the second quarter of 2016, oil and gas accounted for N1.735 trillion or 92.9 per cent of the total export value.

The National Bureau of Statistics, which made this known in its second quarter foreign trade statistics released last week, disclosed that natural liquefied gas recorded ₦198 billion of the total export value during the period under review.

Besides Nigeria’s crude oil production decreased by 51,000 barrels per day (bpd) from the 1.520 million barrels per day it recorded in July to 1.468 mbpd in August, according to the August report of the Organisation of Petroleum Exporting Countries (OPEC).

The Bureau disclosed that Nigeria imported N296.1 billion worth of Premium Motor Spirit (PMS) also called petrol, during the quarter under review.For example, out of the total N402 billion export earnings from India in the quarter under review, crude oil accounted for N362 billion while non-oil was N39.727 billion.

Also, Nigeria recorded N10.928 billion from non-oil export to the United States, while crude oil accounted for larger sum of N224.081 billion.Nigeria’s crude oil export to Spain was N181,663 billion while it earned N33.505 billion from non-oil products.

Based on export by continent, the report showed that Nigeria mainly exported goods to Europe and Asia, which accounted for ₦611.7 billion or 32.7 per cent and ₦606.4 billion or 32.4 per cent respectively, of the total export value during the period under review.

It added that Nigeria exported goods valued at ₦265.9 billion or 14.2 per cent to Africa while, export to the Economic Community of West Africa States (ECOWAS) region totaled ₦86.9 billion.

The agency stated: “Nigeria’s import trade stood at ₦2.069.2 trillion at the end of second quarter showing an increase of 38.1 per cent from the value ₦1.498.4 trillion recorded in the preceding quarter.

“As with exports. The increase in import value can be traced to a decline in the value of the naira. The structure of Nigeria’s import trade by section was dominated by the imports of “Boilers, machinery and appliances; parts thereof” which accounted for 34.9 per cent of the total value of import trade in second quarter. Other commodities which contributed noticeably to the value of import trade during the review period were Mineral products” (15.8 per cent), Vehicles, aircraft and parts thereof; vessels etc.”(14.7 per cent), Products of the chemical and allied industries (7.6 per cent), and “Base metals and articles of base metals (5.1 per cent).”

“The import trade classified by broad economic category revealed that “capital goods and parts ranked first with ₦663.6 billion or 32.1 per cent. This was followed by Industrial supplies with the value of ₦421.2 billion or 20.4  per cent, and Transport Equipment and Parts with ₦356.1 billion or 17.2 per cent. The value of motor spirit stood at ₦296.1 billion. Nigeria’s import trade by direction showed that the Country imported goods mostly from China,

“Netherlands, United States, India and the United Kingdom, which respectively, accounted for ₦493.5 billion or 23.9 per cent, ₦285.7 billion or 13.8 per cent, ₦199.0 billion or 9.6 per cent, ₦124.9 billion or six per cent, and ₦119.3 billion or 5.8 per cent of the total value of goods imported during the quarter. Further analysis of Nigeria’s imports by Continent revealed that the country consumed goods largely from Asia with import value of ₦886.1 billion or 42.8 per cent,”.

According to the OPEC report released on Monday, Nigeria’s drop in oil production also contributed to the decrease in the OPEC total crude oil production, which stood at 33.24 mbpd in August, a decrease of 23 kbpd over the previous month.OPEC said that crude oil output increased mainly from Saudi Arabia and Iran, while Nigeria and Libya showed the largest drop

In its latest September report, the 14-member oil-producing cartel said the trend of “moderate” global growth is likely to continue in 2016 and 2017, and that imminent central bank’s decisions and political developments were likely “to be influential”.

“There are several key dynamics across the globe that are significant (to global growth) in the short-term, OPEC said before commenting on the effectiveness of central bank stimulus programms.

“Interest rates are already low in major economies and the effectiveness of further monetary stimulus has diminished, despite remaining crucial for some economies. Here, any decision from main central banks on monetary policies, particularly the U.S. Fed, will continue to be influential. Moreover, in most key economies the space for fiscal stimulus seems to be limited given high debt levels.” it said.

OPEC said the trend of moderating global growth is likely to continue this year, but that the energy sector, despite being harmed by lower investment as a result, could help buoy global growth.

“There are several key dynamics across the globe that are significant (to global growth prospects) in the short-term,” OPEC noted. “There is a considerable negative impact on global growth from the energy sector due to the sharp decline in investments, mainly in the oil and gas sector as well as lower output values.”
“So far this has not been entirely compensated by positive effects from consumption. Any stabilisation in the crude oil market in coming months could provide positive support to overall economic activity”, OPEC said.

Source: guardian.ng

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Top 5 Smartphone Brands Dominating Africa’s Market

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Top 5 Smartphone brands dominating markets in Africa | Fab.ng

The African smartphone market is booming! Sales of smartphone brands across Africa surged in the first quarter of 2024, according to a report by Canalys. This impressive growth makes Africa the third-fastest-growing region in the world for smartphones.

Here’s a closer look at the numbers:

  • Big jump in shipments: Canalys reports that roughly 18.2 million smartphones were shipped to Africa in the first quarter, which is a significant 24% increase compared to the same period in 2023.

  • Dominant brands: Popular smartphone brands like Transsion, Samsung, and Xiaomi are leading the charge in this growth. These brands are likely popular due to a combination of factors such as brand recognition, affordability, and features that cater to the needs of African consumers.

This significant growth in the African smartphone market suggests a growing number of people across the continent are gaining access to these devices. Smartphones can be powerful tools for communication, education, and economic empowerment, and their increasing availability is a positive sign for Africa’s development.

Let’s take a look at the top 5 smartphone brands dominating Africa’s smartphone market below.

Top 5 smartphone brands in Africa (Q1 2024)

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BUSINESS

These 4 Nigerian Banks Rank Among Africa’s Top Financial Institutions

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See Nigerian banks among Africa’s top financial institutions | fab.ng

Nigeria’s banking industry is making a big splash. Four Nigerian banks have been steadily climbing the ranks and are now considered some of the top financial institutions in Africa. This feat has been further amplified by a recent report from Global Finance, a respected authority on international finance.

Their spotlight on Africa’s best financial institutions has brought even more attention to Nigeria’s growing power in the African financial landscape. These banks haven’t achieved their success overnight. Their rise to prominence signifies a strong and stable foundation and a commitment to financial health.

This recognition by Global Finance isn’t just a win for the banks themselves but for all of Nigeria. It positions the country as a key player in Africa’s financial future and has the potential to attract foreign investment, boost confidence in the domestic banking system, and encourage further growth within the financial sector itself.

This is just the beginning for Nigerian banks. With their newfound recognition, these top-ranked institutions have the potential to expand their reach even further across Africa. This will provide innovative financial solutions to a wider range of customers. The future of African finance looks bright, and Nigerian banks are well-positioned to be at the forefront.

Let’s take a look at these banks below:

1. Zenith Bank Plc

Zenith Bank boasts a global team of over 10,000 employees. This extensive staff ensures they have the manpower to handle a large customer base and deliver quality service.

The bank has a massive physical presence within Nigeria, with a network of 500 branches and business offices. This extensive reach allows them to serve customers in a variety of locations across the country.

Zenith Bank isn’t satisfied with dominating the Nigerian market. They’ve strategically expanded their reach into other African nations, including Ghana, Sierra Leone, Gambia, and South Africa. This global presence positions them as a major player in the African financial landscape.

2. Access Bank

Access Bank is a successful commercial bank that operates in many African countries. They include Ghana and even have a branch in the United Kingdom. It’s part of a larger group of companies called Access Bank Group.

Access Bank is always looking to grow its business and recently made a move to expand into Kenya. To show how serious they are about growing in Kenya, they made an offer to buy a Kenyan bank named National Bank of Kenya.

3. United Bank for Africa (UBA)

The United Bank for Africa, or UBA for short, is very successful in Africa. They’ve won awards for their great service in countries like Burkina Faso and Sierra Leone.

UBA is a major player in African finance with over 1,000 branches spread across 20 African countries and more than 21 million customers.

However, there might be some trouble ahead. Recent political changes in Burkina Faso could make it difficult for UBA to operate there as smoothly.

4. Guaranty Trust Bank (GTB)

Guaranty Trust Bank, or GTB for short, was founded in 1990 and has grown into a very important financial institution around the world.

In 2021, they did a big reorganization and changed their name to GTCO Plc. This change also allowed them to grow their business even further. They opened offices in more and more places across Africa and even outside the continent.

Their dedication to doing a great job and keeping their customers happy is shown in how they were recently named the best bank in Gambia.

Get more business updates here.

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10 African Countries Where Cryptocurrency Is Restricted

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Cryptocurrency: 10 African Countries Where It Has No Use | Fab.ng

Cryptocurrency transactions remain banned in some African countries, despite the potential for regulatory frameworks to support their development.

According to Chainalysis, Africa is one of the fastest-growing crypto markets globally, with Kenya, Nigeria, and South Africa having the highest number of users in the region.

Many governments are wary of digital assets due to concerns over money laundering, illicit activities, tax evasion, and financial fraud, as cryptocurrency transactions can be hard to trace.

In 2021, the Central Bank of Nigeria (CBN) ordered banks to close all customer accounts involved in cryptocurrency transactions. However, this ban was lifted in December 2023.

On May 6, 2024, the Securities and Exchange Commission (SEC) increased restrictions by delisting the naira from all peer-to-peer (P2P) platforms. The Director-General of the SEC, Emomotimi Agama, mentioned that the government is drafting new regulations for the crypto sector, following the advice of the International Monetary Fund (IMF).

Here are countries in Africa where crypto transactions or digital currencies has no use:

Tunisia is one of the African countries taking a particularly cautious approach to cryptocurrency. Back in 2018, their central bank made headlines by actually criminalising the use of cryptocurrencies.

They issued a strong statement warning people against using any digital asset that the Tunisian government did not officially approve. This strict stance shows just how seriously some African countries are taking the potential risks associated with cryptocurrency.

Sierra Leone has been very cautious about cryptocurrency. In 2019, their central bank took a strong stance against it. They shut down two cryptocurrency companies and made it clear that they wouldn’t be granting any licences to businesses or banks that wanted to deal with cryptocurrency deposits or trading.

This shows that Sierra Leone is concerned about the potential risks involved with cryptocurrency and is taking steps to limit its use in the country.

The situation regarding cryptocurrency in the Democratic Republic of Congo (DRC) is a bit unclear. The International Monetary Fund (IMF) reports that the Congolese government has completely banned cryptocurrency.

However, a 2018 study by Ecobank suggests the opposite. They found no official statements from either the Congolese government or the Central Bank regarding cryptocurrency’s legality or use.

This lack of clear communication from Congolese authorities makes it difficult to say for sure what the official stance is on cryptocurrency. However, from the IMF reports, it is assumed that the government does not accept its use.

Ghana is another African country taking a wait-and-see approach to cryptocurrency. The Ghanaian government has completely banned crypto transactions within the country.

Despite the ban, the government is still interested in the underlying technology behind cryptocurrency, blockchain. They’re currently studying how blockchain could be used to improve Ghana’s payment systems.

This cautious approach is evident in their actions. In 2022, they reaffirmed the 2018 ban on using cryptocurrency for any financial transactions in Ghana.

Algeria has a strict ban on cryptocurrency. Back in 2018, their parliament passed a law that completely restricted digital currency activity in the country. This law prohibits Algerians from buying, selling, using, or even just owning cryptocurrency.

In 2018, the country’s central bank raised a red flag about cryptocurrency. They issued a statement warning people against promoting or investing in crypto because it wasn’t regulated or officially licensed by the government. This suggests they’re concerned about the potential risks involved.

Morocco’s relationship with cryptocurrency has been a rollercoaster. In 2017, the Ministry of Economy slammed the brakes on crypto transactions, fearing they violated the country’s exchange regulations. This meant a complete ban on buying, selling, or trading cryptocurrency in Morocco.

However, things seem to be changing. In 2023, there was a positive shift. Morocco’s central bank announced they were working on drafting new regulations specifically for crypto trading. This suggests a move towards a more controlled and monitored crypto market in Morocco.

Tanzania is another African country where cryptocurrency exists in a bit of a grey area. There aren’t any written laws or regulations specifically about cryptocurrency transactions in Tanzania.

However, the Tanzanian central bank has taken a cautious approach. They issued a public statement advising people against trading or using virtual currencies like Bitcoin. The bank made it very clear that the only official currency recognised in Tanzania is the Tanzanian shilling.

Cryptocurrency is a hot topic in Central Africa, but there are no clear rules yet. Cameroon, for example, belongs to the Central African Economic and Monetary Community (CEMAC). This means they use the Central African CFA franc, managed by the Bank of Central African States (BEAC).

Right now, the BEAC hasn’t set any regulations for crypto trading. This might seem surprising considering the growing popularity of crypto. However, the good news is that the Cameroon government is working on it. They’re currently reviewing new rules to create a framework for cryptocurrency use in the country.

Things are complicated when it comes to cryptocurrency in Egypt. In 2018, a major Islamic legal authority called Dar al-Iftai issued a religious decree. This decree said that trading Bitcoin goes against Islamic law (Sharia Law). They basically classified it as forbidden, which is the meaning of the word “haram.”

This was followed by a move from the Egyptian Central Bank in 2019. They announced plans to create a new law. This law would make it illegal to create, trade, or even promote cryptocurrency without a special licence.

So, while using digital currency isn’t completely banned, it seems Egyptian officials are cautious about it and want to regulate it very closely.

For more articles like this, visit here.

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