Nigeria may have one of the highest inflation rates globally in 2022, with increasing prices diminishing the welfare of Nigerian households, the World Bank has said.
According to the World Bank, Nigeria is projected to have one of the highest inflation rates globally and the seventh highest among Sub-Saharan African countries in 2022
“In 2022, Nigeria is expected to have one of the highest inflation rates in the world and the seventh highest in Sub-Saharan Africa,” it said.
The bank said this in the November edition of its Nigeria Development Update.
According to the global financial institution, high inflation hampers the country’s attempt to achieve economic recovery and erodes the purchasing power of most vulnerable households.
The document read in part, “High inflation is frustrating Nigeria’s economic recovery and eroding the purchasing power of the most vulnerable households. In the absence of measures to contain inflation, rising prices will continue to diminish the welfare of Nigerian households.”
The bank further highlighted the adverse effects of inflation on Nigeria, which include pushing eight million Nigerians into poverty, and the possible disruption of consumption, investment and saving decisions, among other consequences.
“If inflation had been closer to the CBN’s goal of nine per cent in 2021, the average Nigeria’s consumption would have been 15 per cent higher, and eight million Nigerians would have not fallen into poverty.
“If double-digit inflation persists during 2022-2023, rising prices will distort consumption, investment, and saving decisions of the government, households, and firms, with adverse ramifications for long-term borrowing and lending.
“Over time, the disproportionate impact of inflation on lower-income households and those working in sectors with low savings (e.g, agriculture) will exacerbate inequality. Ultimately, inflation will not only negatively affect incomes, but also economic productivity and job creation, further constraining the recovery,” the bank said.
Four Nigerian Banks Fined N800m For Violating Crypto Policy
Four Nigerians banks have been fined for flouting directive on cryptocurrency transactions, the Central Bank of Nigeria has said.
Grassroots.ng had reported in February 2021when the CBN ordered that all banks to close accounts of anyone who transacts in cryptocurrency.
According to the CBN, dealing in cryptocurrency or facilitating payments for cryptocurrency exchanges is prohibited.
In a report by Bloomberg on Wednesday, the CBN has now fined at least four banks for failing to comply with that regulation.
The banks include Stanbic IBTC Bank, Access Bank, United Bank for Africa and Fidelity Bank.
Stanbic Bank, according to the report was fined N200 million for two accounts alleged to have been used for crypto accounts.
Access Bank was fined N500 million for failure to close customers’ crypto accounts; UBA was fined N100 million and Fidelity Bank was fined N14.3 million.
Stanbic IBTC told Bloomberg that it had followed the CBN directive but that some transactions may have passed through its system undetected.
Nigeria, according to Paxful, a Bitcoin marketplace, accounts for the largest volume of cryptocurrency transactions outside the U.S.
Pension: Lagos Government Dollout N1.4bn To 222 Retirees
The Lagos State Government has said it paid N1.04bn pension to 222 retirees in the state in February.
The Director-General, LASPEC, Babalola Obilana, disclosed this during the 91st batch retirement bond certificate presentation ceremony in Lagos on Friday.
“Today (Friday), the present administration of Governor Babajide Sanwo-Olu will be presenting another set of 222 retirees with a sum of N1.043bn, being their past service benefits prior to the commencement of the Contributory Pension Scheme in 2007,” he said.
He said despite the numerous local and global challenges, the state government had made continuous monthly payments a priority to ensure retirees access their retirement benefits as soon as possible.
He said LASPEC also constantly reviewed its business processes to ensure first-class service delivery to its retirees and accomplish the state’s goal of the immediate payment of pension entitlements upon retirement from the public service.
Obilana said the state government, in recognition of its dedicated workforce, had consistently prioritised pension contributions in the annual state budget.
NBK Capital Partners Mezzanine Fund Provides US$ 10M Financing to Moove, An African Mobility Fintech
NBK Capital Partners Mezzanine Fund II (the “Fund”) announced today that it closed a US$ 10 million financing facility with Uber’s exclusive vehicle supply partner in Africa, the mobility fintech Moove. The innovative asset-backed venture debt marks the sixth investment from the Fund advised by NBK Capital Partners.
The growth facility from the Fund will support Moove’s expansion in West Africa initially, executives said. Moove is the first investment in Africa by NBK Capital Partners funds, underscoring the opportunity for a platform like Moove to address the continent’s vehicle financing gap.
Founded in 2019 by Ladi Delano and Jide Odunsi, Moove is an African mobility fintech that is democratizing vehicle ownership by providing revenue-based vehicle financing to mobility entrepreneurs across Africa.
The two co-founders are British-born Nigerians, educated at the London School of Economics, Oxford University and MIT, who have successfully built three other businesses on the continent prior to founding Moove.
The market opportunity is vast – Africa is home to 1.3 billion people, with 43 per cent in urban areas and growing, and in 2019 had fewer than 900,000 total new vehicle sales compared to 17 million in the U.S.
Moove provides vehicle financing for cars, bikes and lorries to mobility entrepreneurs across the continent through its alternative credit scoring technology and innovative revenue-based financing model and is Uber’s exclusive vehicle financing and vehicle supply partner in sub-Saharan Africa. The company currently operates in six cities across Ghana, Nigeria, South Africa, and Kenya, with plans to expand further across the continent.
“We are very excited to partner with Moove on its journey to transform access to credit for millions of people across the African continent,” said Yaser Moustafa, Chief Executive Officer of NBK Capital Partners. “The company is driven by strong founders who possess a unique, long-term vision for success, one built on the empowerment of individuals from every socioeconomic class across the region but also a genuine commitment to social and environmental sustainability.”
NBK Capital Partners Mezzanine Fund’s’ financing comes at a fantastic time for our company and is intelligently structured for our use case,” said Ladi Delano, Co-Founder and Chief Executive Officer, Moove. “This investment brings our total funding raised to date to US$ 78 million and will fuel our continued growth trajectory as we expand our regional operations to empower more mobility entrepreneurs. We are grateful to be working with a firm that supports our vision to build the first mobility fintech for Africa markets, tackling the problem of lack of access to credit for millions.”
Jide Odunsi, Co-Founder and Chief Executive Officer, Moove, commented: “Using our alternative credit-scoring technology and revenue-based model, Moove is empowering more women to access financing and become mobility entrepreneurs. We’re committed to ensuring that at least 50 percent of our customers are female, providing them with the tools, services, and flexibility they need to be productive and successful, when previously they have been excluded from more formal means of employment.”
Executives added, through year-end December 2021, more than 2 million trips have been made in Moove-financed vehicles since it launched operations in 2020.
Sikander Ahmed, Managing Director and Head of Private Credit at NBK Capital Partners said: “We are proud to support Moove’s management at such a vital time in the company’s expansion. We believe our flexible financing solutions are the reason why an increasing number of rapidly growing companies have come to rely on us for proven solutions to the many complex financial situations in which they find themselves.”