Nigeria Roundup: Foreign exchange, debt servicing, cholera outbreak
Debt servicing
In Q1'24, Nigeria spent N2.46 trillion to service its N121.67 trillion ($91.46 billion) public debt, comprising N1.47 trillion ($991 million) in foreign debt service payments and N989.24 billion ($666 million) in domestic debt service payments. The domestic debt for the 36 states and the Federal Capital Territory stood at N4.07 trillion. The increase in domestic debt was from new borrowing to part-finance the 2024 budget deficit and securitisation of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria. The government expects improvements in revenue to enhance debt sustainability as reported by Vanguard.
Manufacturing regulatory functions
Manufacturing experts at the MAN CEO breakfast meeting in Lagos on Thursday, June 20 called for the adoption of good regulatory governance principles to address the impact of overlapping regulatory functions on business operations. They emphasised the need to minimise regulatory risk and harmonize regulations to reduce operational costs and promote business growth. MAN President, Otunba Francis, also noted the importance of harmonisation in creating a more coherent and business-friendly regulatory environment. NAN further reports that the Chairman of MAN Ikeja Branch, Elder Robert Ugbaja, called for collaborative efforts to develop practical strategies for regulatory harmonization to unlock the full capacities of Nigerian businesses and industries.
Cholera outbreak
The World Health Organisation has reported a global resurgence of cholera, with over 195,000 cases and 1,900 deaths in 24 countries in 2024. Nigeria is struggling to contain the spread, with 882 suspected cases and 16 deaths. The outbreak is most severe in Bayelsa State. Lagos State is also affected, with challenges in managing the disease due to poor access to clean water and sanitation facilities, reports NairaMetrics. Efforts to curb the spread of cholera have included improving water, sanitation, and hygiene practices, as well as deploying rapid diagnostic tests and enhancing surveillance. However, persistent challenges of urban slums, lack of potable water, and limited healthcare infrastructure hinder progress. The World Health Organisation has faced challenges in managing the outbreak, with a high demand for vaccines exceeding supply.
Foreign exchange gains
Nigeria's foreign exchange reserves have reached a three-month high, standing at $33.58 billion as of June 19, 2024. This milestone comes after a period of stability in the exchange rate and a surge in financial commitments from the World Bank. NairaMetrics reports that the Central Bank of Nigeria has seen a 5% increase in reserves in the last two months, with improved liquidity in forex turnover. Multiple loans and support from international organizations, such as Afrexim Bank and the World Bank, are expected to further stabilise the country's forex market and support its economy.
UK study visas issued to Nigerians fall by 38%
Recent statistics from the UK Home Office indicate a significant 38% reduction in the issuance of study visas to Nigerian nationals from March 2023 to March 2024. The report highlights a downturn in study visas granted to individuals from India and Nigeria, the two principal sources of study visa applicants for the UK. Indian nationals saw a 16% decrease in visa approvals during the same period. According to NairaMetrics, this downward trend is seemingly linked to the January 2024 policy amendment that limits international students from having dependents accompany them, except for those engaged in research-oriented postgraduate studies.
