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FGN announces palliatives to SMEs

As promised, President Tinubu has kicked off the disbursement of the ₦500bn palliative package to cushion the effect of recent policy reforms on poor households and businesses. Of the ₦500 billion palliative (0.25% of the GDP), ₦75bn is to be disbursed for manufacturing support, ₦125bn for MSME financing, ₦100bn for CNG buses, and ₦200bn for agricultural intervention. The government towing this line in supporting businesses will aid in increasing employment levels in the country, business expansion, and overall economic growth. SMEs contribute 48% to the total GDP and employ 84% of the labor force.

FX translation losses hit corporates

Since the unification of the multiple exchange rates, the naira lost significant value to close at ₦830/$ on August 1. Consequently, corporates have incurred substantial forex translation losses. Of the 58 companies that reported their H1’23 corporate earnings, ten of them have recorded cumulative translation losses of ₦764 billion. The good news is that these losses are extraordinary items that are one-offs.

ECOWAS’ sanctions on Niger Republic to bolster oil prices

The global price of uranium rose by 0.72% to $56.15/lbs today, partially due to the recent economic sanctions imposed on Niger Republic in response to the recent coup d’etat in the West African Francophone country. Niger is the world’s 7th largest producer of uranium, accounting for 5% of the global supply and 75% of its export earnings. The political crisis in the country will keep the price of uranium high. The supply disruptions will shift demand to traditional sources of energy i.e thermal, gas etc. The futures market for crude oil is already showing signs of resilience trading at $85.11pb.

These and other burning economic issues were discussed on the Business Morning programme on Channels TV by FDC’s Managing Director, Mr Bismarck Rewane.

Click the link below to watch the video.

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