CBN governor nominees, food prices… 7 business stories to track this week

Here are the seven top business stories you need to track this week — September 18 to September 22.

TINUBU NOMINATES NEW CBN GOVERNOR, DEPUTIES

President Bola Tinubu has nominated Yemi Cardoso as the new governor of the Central Bank of Nigeria (CBN).

He also nominated four new deputy governors; namely Emem Nnana Usoro, Muhammad Sani Abdullahi Dattijo, Philip Ikeazor, and Bala M. Bello.

Ajuri Ngelale, special adviser to the president on media and publicity, announced the development in a statement on Friday.

Upon confirmation by the senate, Cardoso is expected to serve for a term of five years. 

INFLATION RATE RISES TO 25.80% IN AUGUST

The consumer price index (CPI), which measures the rate of change in prices of goods and services, rose to 25.80 percent in August 2023 — up from 24.08 percent in the previous month.

According to the National Bureau of Statistics (NBS) report, the country’s inflationary trend was driven by increases in food prices.

In the report, food inflation rate in August 2023 was 29.34 percent on a year-on-year basis. This was 6.22 percent points higher compared to the rate recorded in August 2022 (23.12 percent).

The report noted that Kogi, Lagos, and Kwara residents paid more for food during the review period.

NIGERIA’S DEBT HITS N87TRN

The Debt Management Office (DMO) says Nigeria’s total public debt was N87.38 trillion in the second quarter (Q2) of 2023, recording an increase of 75.29 percent.

This represents a N37.53 trillion increase in total public debt, compared to the N49.85 trillion reported at the end of the first quarter (Q1) of the year.

In its latest report, the debt office said the surge was occasioned by the N22.71 trillion ways and means advances obtained by the federal government from the Central Bank of Nigeria (CBN).

NBS REPORT

The Nigerian Bureau of Statistics (NBS) is expected to release a report on automative gas oil (diesel) and liquefied petroleum gas (cooking gas) price watch for August 2023.

The bureau also intends to publish a report on selected food prices and its transport fare watch for August 2023.

Also, NBS will release a report on the country’s terms of trade for the second quarter (Q2) of 2023.

NATIONAL GRID COLLAPSES — FIRST TIME IN 2023

Last week, the national grid suffered a fresh total system collapse.

In a notice to customers, the Enugu Electricity Distribution Company (EEDC) Plc said the national grid collapsed at about 12.40 am on Thursday.

Confirming the development, Adebayo Adelabu, minister of power, said the collapse of the national grid was caused by a fire outbreak on the Kainji/Jebba 330 kilovolt (kV) line.

In a series of posts on X, Adelabu said the fire led to the loss of about 356.63MW generation.

OIL PRICE RISES TO $90 A BARREL

Oil prices, on Friday, edged up to over $90 a barrel for the first time since November 2022.

Brent crude, the global oil benchmark, increased by 1.69 percent to $92.23 a barrel, while the US West Texas Intermediate jumped 2.02 percent to $89.05 a barrel at 16.46 WAT.

Last week, Brent reached $89 a barrel for the first time in 10 months, an increase reportedly driven by cuts from Saudi Arabia and Russia — Organisation of Petroleum Exporting Countries (OPEC) leaders.

The increased price of the commodity is said to be bolstered by a tighter supply outlook.

Meanwhile, OPEC, in its monthly oil market report, said Nigeria’s oil production increased to 1.18 million barrels per day (bpd) in August 2023 — up from 1.08 million barrels in July.

FG SELECTS 42 BIDDERS GAS FLARE COMMERCIALISATION PROGRAMME

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says 42 oil and gas companies emerged winners of 49 flare sites in the 2022 Nigerian gas flare commercialisation programme (NGFCP) bid process.

In a statement on Wednesday, the commission said it had approved KPMG, a global network of professional firms, for a partnership on the implementation of the award to ensure a successful outcome.

According to the NUPRC, 38 of the companies have been awarded 40 flare sites “for standalone single flare site development”, while four entities were awarded nine sites to be developed as clusters.

With this project, the federal government could reduce the volume of gas wasted and improve the efficiency of Nigeria’s upstream oil and gas industry.