The naira crashed against the dollar on Monday, falling to 1,030/$ on the average in the parallel market, losing the momentum it gathered last week.

This represents a N80 loss or a 8.42 per cent decline of the local currency compared to the N950 it closed the week at last Friday.

This is also the first time the naira is falling since the Central Bank of Nigeria began to clear some of its FX backlog last week.

Currency traders, also known as Bureaux De Change operators, told our correspondent that the naira was trading at between N990 to N1,030/$.

A trader who gave his name as Awolu said, “The dollar is N995 if you want to sell. If you want to buy from me, it is N1,020.” Another trader, Kadri, added, “The dollar is N960 if you want to sell. If you want to buy, it is N990.”

According to the President of the Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, the dollar has gained against the naira because people who had bought it at a higher price are resisting its fall following the Central Bank of Nigeria’s move last week.

Last week, the apex bank commenced payment of outstanding matured FX forwards owed to various banks.

This was meant to boost liquidity in the foreign exchange market following weeks of the naira falling to record lows. According to the Minister of Finance, Wale Edun, the amount of overdue forward payments was about $6.7bn.

This move quickly led to the appreciation of the naira with the naira gaining about N220 after closing the week at N950/dollar at the parallel market. The naira has now seemingly lost this momentum.

Confirming the closing price of the dollar, Gwadabe said, “In the afternoon, it was N1,015 and N1,020/$. It closed at N1,030/$.”

He highlighted, “Speculators are always looking at elements of sustainability. Once they sense that it (the injection) is not continuous, they begin to react. They begin to react. It is the reaction of the market we are witnessing. Also, there is resistance. There are people that bought at a higher price that this does not favour. People are not willing to take further losses.

“The only way we can continue to achieve the rate is by continuing to send confidence to the market. Tell the market that another window is opening, and boost liquidity. The parallel market is where the retail end is. And as of now, there is no information as to how liquidity will come into that sector. All we have is that BDCs will be included to advance the official foreign exchange market. We cannot wait in the FX market.”

Also, the naira declined by 3.6 per cent at the official market to close at N809.02 to the dollar on Monday from N780.23/$ on Friday according to details on FMDQ OTC Securities Exchange.

Punch

• Business Insider Africa presents 5 worst cities to live in Africa.
• Cities such as Lagos (Nigeria) and Algiers (Algeria) have gained ground, with some improvements in their healthcare and education systems.
• The list is courtesy of Economist Intelligence Unit.

Africa is a continent of remarkable diversity, and its cities are a testament to it. Each city has its unique mix of culture, history, and opportunities. However, in certain pockets of this varied landscape, daily life is marred by challenges arising from ongoing political instability, economic hardships, and a shortage of basic services.

The Economist Intelligence Unit in its report "The Global Liveability Index 2023," featured the world's top 10 most liveable cities and the 10 cities considered the least liveable.

This report evaluates the livability of cities worldwide based on a combination of five key factors: stability (crime and conflict levels), healthcare (availability and quality), environmental/cultural factors (climate, religious restrictions, food, and drinks), education (availability and quality), and infrastructure (roads, public transport, water, housing, energy, and telecommunications quality).

According to the report, African cities such as Lagos (Nigeria) and Algiers (Algeria) have gained ground, with some improvements in their healthcare and education systems.

Although corruption continues to be an issue, some additional public funding has been made available for infrastructure and public services, which have also benefited from the decline in Covid cases.

However, among the ten cities with the lowest liveability rankings, half of them are located in Africa. Below are the liveability rating for these African cities::

1. Tripoli, Libya is ranked as the least liveable city in Africa.

• Rank: 172
• Rating: 40.1
• Stability: 30.0
• Healthcare: 45.8
• Culture and Environment: 37.5
• Education: 58.3
• Infrastructure: 41.1

2. Algiers, Algeria

• Rank: 171
• Rating: 42.0
• Stability: 35.0
• Healthcare: 50.0
• Culture and Environment: 45.4
• Education: 58.3
• Infrastructure: 30.4

3. Lagos, Nigeria

• Rank: 170
• Rating: 42.2
• Stability: 25.0
• Healthcare: 37.5
• Culture and Environment: 54.4
• Education: 41.7
• Infrastructure: 53.6

4. Harare, Zimbabwe

• Rank: 166
• Rating: 43.8
• Stability: 40.0
• Healthcare: 29.2
• Culture and Environment: 56.7
• Education: 66.7
• Infrastructure: 35.7

5. Douala, Cameroon

• Rank: 164
• Rating: 46.4
• Stability: 60.0
• Healthcare: 29.2
• Culture and Environment: 51.2
• Education: 41.7
• Infrastructure: 42.9

Business Insider

Federal Capital Territory Emergency Management Agency (FEMA) says two men died in the fire outbreak that gutted a section of the Canadian high commission in Abuja, Nigeria’s capital.

Isa also confirmed that a diesel tank explosion was responsible for the fire incident.

Nkechi Isa, FEMA spokesperson, made the confirmation in a statement Monday evening.

Earlier, it was unclear what had started the fire at the Canadian high commission building.

However, there were reports that there was an explosion at the commission’s power-generating plant.

According to Isa, the diesel tank exploded around 10:45 a.m. in the commission’s generator house when two MIKANO generators were being serviced by a five-man team from JMD company.

“One of the generators was said to be working, while the other one was being serviced when a tank containing 2,000 litres of diesel in the generator house exploded,” Isa said.

“Two of the personnel servicing the generator died from the explosion while two others survived with severe burns and were taken to the Trauma Centre at the National Hospital, Abuja.”

The FEMA spokesperson added that the FCT fire service was able to contain the fire around 12.30 p.m. while ambulances from the ministry of defence, federal fire service, and FEMA were on standby.

Mohammed Sabo, acting FEMA director-general, called for caution while handling petroleum products with the onset of the dry season.

Sabo asked residents to always use the 112 emergency toll-free number in the event of any disaster or emergency.

The Cable

At least 15 rice farmers were killed and several others feared abducted in Borno state after suspected Boko Haram insurgents attacked three villages, a local farmers' leader said on Monday.

The attack occurred in the villages of Koshebe, Karkut, and Bulabulin in the Mafa local government area in the state, about 15 kilometres from the capital Maiduguri, Mohammed Haruna, secretary of the Zabarmari Rice Farmers Association, told Reuters.

Borno state police spokesperson did not immediately respond to Reuters' request for comment on the attack, which happened on Sunday.

Haruna said the Islamists stormed the villages on motorcycles and attacked the farmers who were harvesting crops from their rice fields.

"They did not use guns to kill them, instead they used cutlasses and knives to stab them to death, while others were beheaded," Haruna said.

He said 15 farmers were confirmed killed in the attack, adding that some managed to escape. The number of those missing is still unknown.

The attack is the latest in a series of assaults by Boko Haram in northeast Nigeria. The group has been waging a 14-year insurgency in the region aimed at establishing an Islamic caliphate there.

At least 40 people were killed in the northeastern Yobe state last week, the first major Boko Haram attack in the state in 18 months.

Last week, federal lawmakers approved a supplementary budget that includes provisions for defence and security.

President Bola Tinubu has yet to outline how he plans to tackle insurgency in the north and widespread insecurity across the country.

Reuters

Israeli forces cut off north Gaza to isolate Hamas as advance on urban center looms

The Israeli army severed northern Gaza from the rest of the besieged territory and pounded it with airstrikes Monday, preparing for expected ground battles with Hamas militants in Gaza’s largest city and an even bloodier phase of the month-old war.

Already, the Palestinian death toll surpassed 10,000, the Health Ministry of the Hamas-run Gaza Strip said Monday. The ministry does not distinguish between fighters and civilians. About 1,400 people in Israel have died, mostly civilians killed in the Oct. 7 incursion by Hamas that started the war.

The war has quickly become the deadliest Israeli-Palestinian violence since Israel’s establishment 75 years ago, with no end in sight as Israel vows to remove Hamas from power and crush its military capabilities.

Casualties are likely to rise sharply as the war turns to close urban combat. Troops are expected to enter Gaza City soon, Israeli media reported, and Palestinian militants who have had years to prepare are likely to fight street by street, launching ambushes from a vast network of tunnels.

“We’re closing in on them,” said Richard Hecht, an Israeli military spokesman. “We’ve completed our encirclement, separating Hamas strongholds in the north from the south.”

BOMBARDMENT IN NORTH GAZA

Several hundred thousand people are believed to remain in the north in the assault’s path. The military says a one-way corridor for residents of Gaza City and surrounding areas to flee south remains available. But many are afraid to use the route, part of which is held by Israeli troops.

In recent days, airstrikes have hit U.N. facilities where thousands are sheltering, as well as hospitals, which have been overwhelmed by wounded and running low on power and supplies.

A strike early Monday hit the roof of Gaza City’s Shifa Hospital, killing a number of displaced people sheltering on its top floor and destroying solar panels, said Mohamed Zaqout, general manager of all hospitals in Gaza. The panels have been helping keep power on in the facility, which has been reduced to using one generator because of lack of fuel.

The strike came in what witnesses said was one of the heaviest nights of bombardment yet in northern Gaza. Israel said it struck 450 targets overnight, killing a number of Hamas military commanders. Israel blames civilian casualties on Hamas, accusing the militants of operating in residential neighborhoods.

The overnight barrages crushed homes, burying unknown numbers of people underneath, in the Shati refugee camp, a densely built-up district on the Mediterranean coast adjacent to central Gaza City, Palestinians who fled south Monday reported.

Ghassan Abu Sitta, a surgeon at Shifa Hospital, told The Associated Press the hospital buildings shook all night from the bombardment “and we started getting the bodies and the wounded. It was horrendous.”

The military released videos that it said showed its ground troops uncovering Hamas rocket launchers in a youth center and near a mosque in northern Gaza. It did not provide the precise locations where the videos were filmed, and the images did not include any visible landmarks, so The Associated Press could not independently confirm the videos.

Around 70% of Gaza’s 2.3 million residents have fled their homes since the war began. Food, medicine, fuel and water are running low, and U.N.-run schools-turned-shelters are beyond capacity. Many people are sleeping on the streets outside.

Mobile phone and internet service went down overnight, the third territory-wide outage since the start of the war, but was gradually restored on Monday.

NO SIGN OF HEADWAY ON PAUSE

U.S. President Joe Biden raised the need for humanitarian pauses directly with Israeli Prime Minister Benjamin Netanyahu on a call Monday, but there was no agreement reached, the White House said.

So far, Israel has rejected U.S. suggestions for a pause, aimed at facilitating humanitarian aid deliveries and the release of some of the estimated 240 hostages seized by Hamas in its raid. Israel has also dismissed calls for a broader cease-fire from Arab countries.

After days of intense diplomacy around the Middle East, U.S. Secretary of State Antony Blinken wrapped up his tour of the region Monday. He said efforts to secure a pause, negotiate the hostages’ release and plan for a post-Hamas Gaza were still “a work in progress” without pointing to any concrete achievements.

The war has also stoked wider tensions, with Israel and Lebanon’s Hezbollah militant group trading fire along the border. In another sign of growing unrest, a Palestinian man stabbed two members of Israel’s paramilitary Border Police in east Jerusalem before being shot dead, according to police and an AP reporter at the scene. Police said one of the officers, a 20-year-old woman, was later pronounced dead.

In the occupied West Bank, Israeli forces shot to death four Palestinian men in a vehicle in the city of Tulkarem, the Palestinian Health Ministry said. The military said two of the men were high-ranking militants.

Israel captured east Jerusalem, along with Gaza and the West Bank, in the 1967 Mideast war. The Palestinians want all three territories for a future state. Israel annexed east Jerusalem in a move not recognized by most of the international community; it considers the entire city its capital.

In northern Gaza, a Jordanian military cargo plane air-dropped medical aid to a field hospital, King Abdullah II said early Monday. It appeared to be the first such airdrop of the war, raising the possibility of another avenue for aid delivery besides Egypt’s Rafah crossing.

Over 450 trucks carrying aid have been allowed to enter Gaza from Egypt since Oct. 21. But humanitarian workers say the aid is far short of mounting needs.

The crossing was closed on Saturday and Sunday because of a dispute among Israel, Egypt and Hamas. But it reopened Monday and seven Palestinian patients were evacuated to Egypt, the International Committee of the Red Cross said.

FLEEING SOUTH

Some 800,000 people have heeded Israeli military orders to flee to southern Gaza. But continued Israeli strikes in central and southern Gaza — the purported safe zone — killed dozens of people on Sunday.

After another strike Monday, in the southern town of Khan Younis, men dug through the rubble with sledgehammers and their bare hands. A young boy caked in dust screamed as he was rolled onto a stretcher and carried away. At least two people were killed, according to an AP reporter at the scene.

Earlier Monday, Palestinians held a mass funeral for 66 people laid out on the ground outside a hospital morgue in the central town of Deir al-Balah. A man with bandages wrapped around his head placed his hand on a child’s body and wept.

The Health Ministry said that 10,022 people have been killed in Gaza, including over 4,100 children and 2,600 women. More than 2,300 people are missing and believed to be buried under the rubble of destroyed buildings, the ministry said.

The Israeli army said 30 Israeli troops have been killed since the ground offensive began over a week ago. Hamas and other militants have continued firing rockets into Israel, disrupting daily life even as most are intercepted or fall in open areas. Tens of thousands of Israelis have evacuated from communities near the volatile borders with Gaza and Lebanon.

AP

WESTERN PERSPECTIVE

Ukraine's Zelenskiy dismisses talk of wartime election as irresponsible

Ukrainian President Volodymyr Zelenskiy dismissed as irresponsible any notion of holding an election in wartime as talks have heated up recently whether Kyiv should be voting when under Russia's assault.

Calling for unity to avoid pointless political discussion, Zelenskiy's comments appeared to rule out any suggestion Ukraine should hold a vote to demonstrate its democratic credentials remain in good order.

While the martial law declared in the country at the start of Russia's full-scale invasion in February 2022 prohibits authorities from holding elections, there has been increased debate at home and abroad about a potential poll in March 2024.

In his nightly video address, Zelenskiy said it was critical to concentrate on the military challenges facing Ukraine as it tries to push out Russian forces occupying nearly one-fifth of its land more than 20 months after launching their invasion.

"We all understand that now, in wartime, when there are many challenges, it is utterly irresponsible to engage in topics related to an election in such a frivolous manner," he said.

"We need to recognise that this is a time for defence, a time for battle, upon which the fate of the state and its people depend... I believe that elections are not appropriate at this time."

In peacetime, Ukraine would had held parliamentary elections in October and the first round of presidential vote in early spring 2024.

U.S. Republican Senator Lindsey Graham and some other Western officials have urged Kyiv to stage an election to show it can hold free and fair vote while at war.

Ukrainian Foreign Minister Dmytro Kuleba said at the weekend the president was weighing the pros and cons of a wartime poll.

Zelenskiy himself had previously said he would be prepared to hold the vote if Ukraine secured the assistance it needed - and if election were deemed necessary.

WESTERN IMPATIENCE

While Zelenskiy's ratings soared after the start of the Russian invasion, there have growing signs of impatience with the Ukrainian leader among some of Kyiv's western allies.

There is also the appearance of a rift in the country's leadership after the Ukraine's top commander signalled the war had come to a static stage, an interpretation which Zelenskiy vehemently denied over the weekend.

On Monday, Zelenskiy said that if it proved necessary to end divisive talk, there were state structures "capable of making those decisions and providing all the necessary answers to society."

He also said it was vital the state's institutions were fully behind the war effort "and not on paving stones or street repairs".

The country, he said, had to concentrate "far more on defence...particularly at the regional level," and called for efforts to ensure there was no recurrence of a Russian strike at the weekend on a Ukrainian brigade in which military officials said 19 soldiers were killed.

Zelenskiy had earlier said the attack in southern Zaporizhzhia region was "a tragedy that could have been avoided". Ukrainian media reported the soldiers were killed during an awards ceremony on Friday, although full circumstances remained unclear.

RUSSIAN PERSPECTIVE

'World didn’t agree to anti-Russia sanctions' – India

Indian Foreign Minister Subrahmanyam Jaishankar has described sanctions against Russia imposed by the West as “levers” that advanced economies have at their disposal “based on mechanisms, powers and tools built over many years.” 

“They use these levers when it suits them,” he said in an interview with Italian newspaper Corriere della Sera during last week’s visit to Rome. “It's not that they go to the United Nations to seek legitimacy; they do it when they think their interests are at stake. Many parts of the world do not accept the concept of sanctions in the same way. It is done as if the whole world agreed on sanctions. It’s not really like that.”

When asked why emerging countries bring up the “double standards” of the West when it comes to the Ukraine conflict or the war between Israel and Gaza, the foreign minister replied that this sentiment had a lot to do with its Eurocentric attitude toward global affairs.

“A lot of it comes from the fact that, in the past, when there were problems in other parts of the world, European countries essentially thought it wasn’t their place to worry about it. As long as Europe was safe and nothing threatened the European way of life, others could take care of it. Then, when something happens in Europe, European countries want international expressions of solidarity,” he said.

India has abstained from all resolutions moved against Russia in the United Nations (UN) since it launched its military operation in Ukraine in February 2022. New Delhi has also increased the purchase of Russian crude oil and continued buying weapons from Moscow. 

India’s trade volume with Russia has soared in recent months, with turnover for goods in January-August already surpassing the total for the previous year. According to data from the Indian Ministry of Commerce and Industry, total trade between the two countries in the first eight months of the year reached nearly $44 billion. 

Jaishankar’s comments come days after he asserted that New Delhi had acted in its “best interests” when it decided to continue buying oil from Russia in spite of pressure from the West. 

Speaking at an event in Bhopal, Madhya Pradesh, last week, the foreign minister said New Delhi’s “strong stance on our right to buy oil from Russia” had received a lot of attention. “Had we not exercised that option, think about what a difference it would have made to you, think how much higher your petroleum prices would have been, think how much inflation would have gone up in this country,” he told the audience.

Upon being asked by the Italian outlet to comment on Prime Minister Giorgia Meloni’s recent remark that there is “fatigue” over the Ukraine conflict, Jaishankar recalled Indian PM Narendra Modi telling Russian President Vladimir Putin that “today is no time for war” in Uzbekistan last year. 

“An ordinary person would say that, at some point, people have to sit at a table and talk,” Jaishankar noted, adding that India is “always ready” to lend a hand.

Russia Today

You don’t consider yourself as someone particularly smart.

You haven’t invented anything, you’re not a philosopher…in fact, your grades are just so-so!

But why do some people tell you that you’re clever? Well, there’s a chance you’re actually smart but you just don’t know it.

Want to know for sure?

Here are 10 traits that you might secretly be a smart person.

1) You’ve got a potty mouth

People like to assume that if you curse, you’re someone with a small vocabulary, a shallow mind, and are nothing more than a boor.

Those who have no issues saying “f*ck” or “What a load of shite!” are more likely to be creative, open-minded, and honest.

If you cuss like a sailor, you probably don’t waste your mental energy trying to censor every word just so that you can sound polite.

2) You’re always asking questions

It doesn’t matter whether the question is serious or trivial—you’re just naturally curious that some people even find you annoying.

But what can you do? 

You’re just the kind of person to wonder why the sky is blue. And why everyone’s using miles and feet when kilometers and centimeters are more sensible.

You also ask why people hate certain things—like, say, pineapple on pizza, and spiders— and if there’s any real justification for that hate.

And most important of all is that you always ask whether you’re actually right or not.

Smart people always want to know more, while everyone else would be content not questioning the world around them at all.

3) You have no problem changing your mind

When something comes up that challenges your old beliefs, you don’t dig your heels and insist that you were right.

Maybe you were mistaken about the history of France or the age of the solar system, or maybe you had misunderstood a quote you’ve been repeating all your life.

It doesn’t have to be science and history. 

You’re also willing to change your mind about everything else in your day-to-day life—from which brand of soap to use to how you store your food.

Sometimes it’s no big deal to change your mind on something. Sometimes it can uproot everything you’ve believed so far and crushes your ego to dust.

You take the effort to try nonetheless to admit it when you’re wrong and then change your mind.

4) You’re witty and hilarious

Humor is another thing most people don’t associate with intelligence. 

If anything, people tend to assume that smart people are gloomy, nerdy, and socially awkward.

But humor actually requires a lot of smarts to pull off quite well.

You need to think on the spot, know how to read the room, set up the mood, and then drop your joke at the right time—all of this while still engaging with the people around you.

Even better, in fact, if you make your own jokes, too.

All of this requires a sharp, perceptive mind. So if people tell you you’re funny, you’re actually smarter than you think.

5) You like noticing and analyzing patterns

When people talk of smart people, they usually say things like “they know a lot of things!” and “they’re good at solving puzzles!”

Underappreciated is the fact that smart people are very good at noticing patterns, even ones that are so vague that they take weeks, even years to figure out.

For example, Einstein noticed that physics affected everything equally, and so tried to understand why there appeared to be exceptions.

As for you, you get excited when you’re learning about how certain things keep happening, or how certain people keep doing the same things.

You might think “Well, isn’t that a normal thing to do?”

Trust me—some people won’t even notice patterns even if it’s being pointed out to them.

So if you notice patterns and you love connecting the dots, you’re probably smarter than the average person.

6) You don’t associate wealth or academics with intelligence

The dullest tools in the shed would see someone slam the car door on their leg and they’ll happily declare “masterful gambit, sir!”

All it takes is for that person to be someone obscenely wealthy or decorated in academic achievements like straight As and a Magna Cum Laude.

But you don’t think this way. You find it silly, if anything.

Schools are only good at measuring certain kinds of intelligence after all. Besides, there are so many smart and successful people who never finished school.

And wealth? Meh, you know so many smart people who are earning minimum wage and so many wealthy people who talk nonsense.

7) You’re good at simplifying things

Einstein once said “If you can’t explain it simply, you don’t understand it well enough.”

And the reverse is true—if you can explain it simply, that just means you’re smart about the particular topic.

People like to think that smart people make the people around them feel dumb, and a lot of smart people actually struggle to make complicated knowledge easy to understand.

Only someone who is incredibly smart can grasp something so thoroughly that they can break it down for ordinary people. 

They’re able to let other people understand even if they likely don’t have the full context for the given topic.

And this is something that you can do.

You somehow just have a knack for making things easy for others to digest and comprehend, no matter how complicated the topic may be.

8) You have impostor syndrome

Most people would think that being called smart would be an amazing compliment. But you feel awkward when people say this to you.

It makes you uncomfortable when someone calls you “smart” or gives you too much praise for something you did.

Chances are that you suffer from impostor syndrome (like a lot of smart people) and don’t believe you deserve the praise. 

Charles Bukowski said, “The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence.”

The fact that you don’t feel comfortable being called smart is often a sign that you’re much smarter than you think you are!

9) You listen more than you speak

Whether you’re discussing with someone at a conference, watching TV, or arguing with someone online, you’re the kind of person who spends a lot of time listening and thinking.

You don’t immediately hit back with a retort or interrupt people while they’re still speaking. 

You don’t drop your commentary on the stuff on TV before you finish watching everything. 

You don’t immediately type up a reply the moment the other person has sent theirs.

Instead, you take the time to listen and give the new information you’re given enough time to marinate. 

You try to understand what was being portrayed or discussed, and then to figure out whether you’re on the same page before you think of your response.

Sure, all this listening might slow you down, but you’d rather move in the right direction than just blabber nonstop.

10) You can entertain a thought while disagreeing with it

You don’t have to agree with something for you to understand it. You might think that ice does not belong on beer, for example, but still try to understand why someone would like it and try not to judge those who think differently from you too harshly.

Or you might disagree with people who say that the supernatural is real, but at the same time tolerate people who think that way and understand why they hold those beliefs.

When talking with people, you’re willing to hear them out and to try to understand their perspectives even when they differ from or even contradict yours.

Last words

There are many different ways to be “smart”, and there’s no guarantee that you excel at every single way there is to be smart.

HackSpirit

The devaluation of the naira has increased Nigeria’s debt profile by N20.6trn trillion in five months.

A data analysis by Daily Trust indicates that the new borrowing plans by the federal government will see the total debt level hit N89.2 trillion before the end of the year.

If shared to Nigeria’s 213 million people, each citizen will be owing N418,779 to the outside world.

The country’s total debt, both domestic and external, was $113.4 billion or N87.4 trillion as of June 30, according to a data sourced from the website of the Debt Management Office (DMO).

The amount is three times the size of the country’s debt in 2005 when the Paris Club forgave $18bn of that amount.

Central Bank of Nigeria’s official exchange rate of US$1 to N770.38 as of June 30 was used in converting the external debt to naira by the DMO.

The domestic debt includes the N22.7 trillion Ways and Means Advances at the CBN for which the approval of the National Assembly (NASS) to securitize it was received in May 2023.

Minister of Finance and Coordinating Minister for the Economy, Wale Edun, had, last month, at the World Bank/International Monetary Fund (IMF) annual meetings in Marrakech, Morroco, announced a plan by the government to obtain $1.5 billion in budget support from the World Bank.

This would, if granted, push the country’s debt stock to $114.9bn or N89.2trn, using the official exchange rate of N776.4/dollar.

This excludes the new plan to borrow $7.8bn and €100m which the president on Wednesday requested the Senate to approve as part of the 2022 – 2024

A ‘what if’ analysis of the debt profile indicates that if the exchange rate had remained at N461 to $1, according to the Nigerian Exchange Rate Archive by the CBN on May 30,  Nigeria’s debt stock would have been only N57.6 trillion.

Following the devaluation of the portion of the debt owed to external creditors which is denominated in United States dollars, the total debt stock increased by N20.6 trillion as a result of the depreciation of about N315 per dollar in the Nigerian Autonomous Foreign Exchange Market  (NAFEM) window from May 30th to date.

Analysis of debt

As of June, Nigeria’s external debt was $43.1bn; and domestic debt, $70.3 bn.

A total of $20.7bn is owed to multi-lateral organisations; $5.5bn is bilateral; $15.6bn is commercial (Euro bonds); $931m is a promissory note (non-interest notes issued to settle arrears of federal contractors) and $300m, syndicated loans.

The federal government’s portion of the external debt of $43.1bn is $38.8bn, accounting for 90 percent of the debt; while the 36 states and the FCT account for $4.3bn accounting for 10 percent of the debt stock.

The most indebted state, from the breakdown of the $4.3bn debt stock, is Lagos with $1.2bn followed by Kaduna ($569m), Edo ($258m), Bauchi ($170m) and Cross River ($153m).

The least indebted states in the index are Borno ($18m), Taraba and Yobe with $21m each, Jigawa ($26m), Benue ($29m) and Plateau ($31m).

New debt stock a threat-DMO

The Debt Management Office (DMO), in its recent report, titled, ‘Market Access Country-Debt Sustainability Analysis (MAC-DSA)’ for 2022, said  Nigeria’s debt service-to-revenue ratio in 2023 was 73.5 percent, describing it as unsustainable and a threat.

The MAC-DSA is a template used to analyse debt levels to determine future debt sustainability.

The DMO said the results of last year’s MAC-DSA showed that the total public debt-to-GDP ratio was projected to jump to 37.1 percent in 2023, relative to 23.4 percent as of September 2022.

Also in a recent report, KPMG said Nigeria’s debt service to revenue ratio might exceed 100 percent in 2023.

In its macroeconomic snapshot, the professional services firm raised concerns over Nigeria’s risk of sliding into critical debt servicing problems unless urgent actions were explored to significantly raise revenue. In 2022, Nigeria’s debt service-to-revenue ratio was 80.6 percent — a figure far above World Bank’s suggested 22.5 percent for low-income countries like Nigeria.

‘With FGN revenue to GDP ratio of 4.49% as of December 2022, Nigeria’s debt service to revenue ratio may surpass 100% in 2023, which will limit the fiscal space and the government’s ability to pay for its operations and functions, unless urgent measures are taken to build revenue,” KPMG said.

It advised the government to establish well-thought-out guidelines and frameworks for borrowing, focusing on sustainable debt management and giving investments that produce long-term economic returns top priority.

Meanwhile, last Thursday, the CBN began clearing the backlog of foreign exchange obligations estimated at about $7bn.

This intervention had seen the naira appreciate at the parallel on Friday evening as the dollar exchanged for below N950 from the N1,150 it was earlier in the morning same day.

Daily Trust

Scarcity of Liquefied Petroleum Gas also known as cooking gas has hit Lagos and some other states in the country.

The other affected states, according to findings by our correspondents are: Katsina, Sokoto, Delta, Kaduna and Kano.

The rise in price of the commodity has been noticed since late last month, causing a continuous rise in prices.

Market survey carried out by The PUNCH over the weekend, revealed that 12.5kg of cooking gas now sells for between N13,500 and N14,000 at the black market.

Some of the traders told our correspondents that gas plant owners now sell to them at between N1100-N1200 per 1kg as they could not access enough quantity.

As of June, the price of 12.5kg was around N8,700. In September price rose to N10,200, and as of Saturday, price had again risen to between N13,500-N14,000.

In a chat with President, the Nigerian Association of Liquefied Petroleum Gas Marketers, Oladapo Olatunbosun on Sunday, The PUNCH learnt that there is currently not enough cooking gas in Lagos state.

Our correspondent in Katsina also reported scarcity of cooking gas in the state.

According to findings, the scarcity was first observed about two weeks ago as several small retailers complained of non-availability. Investigation has also shown that a kilogram of cooking gas goes for nothing less than N1,400 in the state. No official reason had been given for the scarcity.

Scarcity of cooking gas has also been noticed in Sokoto metropolis in the last few days, leading to prices being increased indiscriminately.

Our correspondent in Kaduna reported that residents were spotted carrying their cylinders in search of the commodity as of Sunday. Findings showed that a retail price of 5 kilogram went for N5,500.

In the neighbouring Kano state, our correspondent disclosed that the resurfacing of scarcity of cooking was noticed, as residents are engaging in panic buying of the commodity.

Following the scarcity, marketers have jacked up prices as one kilogram of cooking gas is now being sold at N850 in some filling stations while others sold it between N900 and N950 per kilogram. Long queues of buyers are now common feature at most of filling stations dispensing the commodity.

At other outlets (black market) the price is between N1,110 per kilo and N1,200 per kg.

In Delta State, investigations by our correspondent in Warri and Effurun show that the price of cooking gas has shot up to N1,100 per kg as of Sunday, 5th November, 2023.

The commodity was selling at N800 per kg in October in the twin cities.

When questioned on the rationale for the price increase, a popular gas dealer in Warri identified as Igho, could not explain the cause.

In Abuja, a resident of Karu, in AMAC Area Council of Abuja, Roy, told our correspondent that while there was no scarcity of cooking gas in his vicinity, his experience was a mix of liquefied gas and pure gas, which no longer lasted as long as it used to.

“So for me, the problem I’m having is it liquefies. So insted of having the normal gas, you end up with like seventy percent gas, and thirty percent liquid that’s inside the cylinder, for whatever you buy.

So initially we were not even aware, until we noticed that when we shake the cylinder, it’s always leaving the liquefied part under. So it ends within like two or three weeks before the normal period when it should last”, he said.

Another resident, Sandra, told our correspondent that there was no scarcity of cooking gas, but noted that it had become expensive.

“I bought gas today at Abacha road in Mararaba. 12.5kg for N13,500. I wouldn’t say there is scarcity, just that it has become expensive”, she said.

Agreeing, another Kubwa resident, Cecilia, said, “It’s not scarce in my area, there’s just a price increase. I bought last Wednesday at N1,000 per Kg. Plus it doesn’t last as long as it used to”.

Punch investigation in Kwara, however showed that the commodity is available in most of the filling stations.

A dealer operating an outlet at Gaa Odota in Ilorin identified as chief Sunday Oladele told our correspondent that gas was available at his outlet adding that a kilogram was being sold at N1,200.

 “Cooking gas is available in Kwara state. I have it in my outlet which I sell at N1,200 per kg. We have not experienced scarcity in Kwara. There is also gas at Ogbomoso in Oyo state where I have another outlet and it is being sold at N1,100 per kg.

The Nigerian Liquefied Natural Gas Limited currently supplies the market 70 per cent of the cooking gas being consumed in-country, according to Olatunbosun.

There are claims that Nigeria had the fastest growing LPG sector in the world with a projected LPG market size of $10bn, as the annual per capita consumption of LPG had risen from 1.8kilogramme in 2015 to 5kg in 2021. According to the Petroleum Products Pricing Regulatory Agency, domestic consumption of cooking gas exceeded 1 million MT in 2020. It said the consumption rate made 2020 the first year in the nation’s history when LPG consumption reached the 1 million MT thresholds.

Punch

No fewer than 22 persons have been killed in Chito and Tyo Akosu communities of Ukum Local Government Area of Benue State, following a rival gang fight and attack on a drinking spot. 

It was gathered from sources in the area that the gang supremacy fight, which erupted, weekend, in Chito Community between the notorious criminal armed groups, known as ‘Chain Gang’ and ‘Full Fire’, left about 15 persons dead, while several others sustained gunshot wounds. 

One of the sources said that the killings at Tyo Akosu settlement was perpetrated by armed men, who stormed a drinking spot in the village and opened fire on unsuspecting customers at the bar. 

He said he could not readily confirm if the attack at Tyo Akosu was an extension of the Chito fight, but noted that the suspicion among the locals was that the supremacy fight was fast spreading in the communities of the council.

One of the sources explained that “It all started on Friday afternoon, during a fight for supremacy between kingpins of crime in Ukum council. They are known as Chain and Full Fire gangs, with their operational base located in the council.

“Both groups are looking for each others’ necks. Full Fire employed the services of another banditry group to help kill the Chain gang, which got wind of the plan and laid ambush for them. 

“They opened fire and killed all of them. Some persons claimed that 10 pereons were killed in the bloody fight while others said they counted 15 bodies. 

“”But it was an internal fight for supremacy among gangs and not a communal crisis. In fact, the locals ran away because they feared for their lives. They feared that in the course of the reprisal, they might be affected despite being innocent.” 

It was gathered that after the Chito bloody fight on Friday evening, a gang of armed men Saturday evening stormed the drinking spot at Tor Akosu village and opened fire on the customers at the bar, killing seven persons and injurying several others. 

He said: “Though we cannot say for sure that it was an extention of the supremacy fight but we cannot rule it out because we cannot tell who belongs to whatever groups anymore. 

“Ukum has become something else, we are all living in fear as we speak because we cannot tell who is who among our local boys,” he said. 

Contacted, the Police Public Relations Officer, Catherine Anene said she was yet to receive information on the incidents.

Vanguard