BUSINESS OVERVIEW: Manufacturers spend N71.22 billion on alternative energy sources; CBN Raises Lending Rate to 13%; Other stories


Hello and welcome to Business Roundup this week. Here we bring you the highlights of the events that transpired during the week – from the capital market, to day-to-day business activities, not to mention technology/economic construction.

Here are the titles:

• Nigerian farmers now owe more CBN to N1trn as many refuse to repay
• Nigeria grants approval to Elon Musk’s Starlink network
• Manufacturers spend N71.22 billion on alternative power source
• CBN raises lending rate to 13% for first time in 2 years


The Central Bank of Nigeria (CBN) has revealed that its lending to farmers has now crossed the trillion naira mark amid rising defaults.

Recently, a CBN official in Oyo State sounded the alarm over the number of farmers who now view loans disbursed under the anchor borrower scheme as their slice of the national pie.

Data from the CBN Monetary Policy Committee statement reveals that the ABP loan increased to N1.01 billion at the end of April.

The Nigerian government has approved the Starlink network in the country.

The South African-born billionaire confirmed the development in a statement posted to his Twitter account – @elonmusk on Friday evening.

He said Nigeria’s endorsement came with Mozambique’s. The Philippines also endorsed the network on Friday.

The Manufacturing Association of Nigeria (MAN) has revealed that its members in the country spent a total of N71.22 billion on buying diesel for alternative energy in 2021.

He noted that its members saved 10.69 billion naira on this cost, compared to 81.91 billion naira in expenditure in 2020.

President of MAN, Eng. Mansur Ahmed, who revealed it on Thursday in Lagos, however, noted that the cost of providing alternative energy was still very high.

For the first time in two years, the Central Bank of Nigeria (CBN) has raised the lending rate for banks to 13%.

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has decided to raise the monetary policy rate, also known as the lending or interest rate, for the first time to 13% from 11, 5% in order to control inflation.

This follows a long and difficult deliberation among the six-member committee which is the CBN’s highest decision-making body.

Read also: BUSINESS ROUNDUP: Customs introduces electronic valuation policy. Weak naira drives Nigeria’s inflation rate to 16.82%; Other stories

On NSE ROUNDUP: Investors gain 503.5 billion naira in 8 hours as Nigerian capital market extends its bull run

Investors in the Nigerian capital market pocketed 503.5 billion naira on Friday after the equity capitalization rose 1.75% at the close of business for the day.

After eight hours of trading, the value of investments in the capital market rose from 28.65 trillion naira recorded on Thursday to 29.15 trillion naira today.

The All-Share Index rose 933.98 basis points to close at 54,085.3 from 53,151.32 posted the previous day.

On Friday, investors traded 208.08 million shares worth N5.52 billion in 4,898 transactions.

On the tech sceneGrey, Cloud Fret, FlexID, Broadcom, ShEquity, Starlink, Bloom are some of the names making headlines this week.

During the week, Broadcom, a 31-year-old IT solutions provider, launched a move to acquire VMware for $61 billion.

Additionally, a Nigerian Fintech startup, Grey, during the week expanded into East Africa through a new partnership with a unique API payment platform, Cellulant.

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