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Nigeria’s Economy On Brink Of Collapse, NECA Raises Alarm

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The Nigeria Employers’ Consultative Association, NECA, on Sunday in Lagos, raised the alarm that the nation’s economy is on the brink of collapse, warning that spiralling inflation, rising energy cost, scarcity of FOREX, the dwindling value of the Naira among others, are bleeding the economy.

The Director-General of NECA, Mr. Wale Oyerinde, lamented that the economy was under the weight of an almost comatose aviation sector, stuttering education system, rising debt, depleting foreign reserve and rising fuel subsidy expenses, among others.

The newly-appointed D-G of NECA advised the Federal Government to employ a holistic and multi-pronged approach towards resolving the challenges faced by the nation.

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According to him, “The nation is currently faced with multiple challenges.

“(It’s) a dire combination of spiralling inflation, rising energy costs (aviation fuel, diesel, etc.), scarcity of FOREX, dwindling value of the Naira and an almost comatose aviation sector.

READ ALSO: Nigeria’s Budget Deficit Hits N30.58tn In Seven Years

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“Also, with a stuttering education system, rising debt, depleting Foreign Reserve and rising fuel subsidy expenses among others, that threatens to lay bare the country’s economy, there is no better time for the Government to reappraise current economic policies and deepen its engagement with the organized private sector.

“While Government’s effort to salvage the economy is commendable, there is, however, a need for a more holistic approach to resuscitate the stuttering economy.

“Being dependent on crude oil for about 90 per cent of its foreign exchange earnings and 80 per cent of its budgetary revenues, Nigeria has always lived dangerously on the precipice, with a major chunk of its revenue dependent on the complexities of global crude demand and supply.

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“A dangerous blend of self-destructive tendencies, insecurity and fiscal and monetary policy inconsistencies have also conspired to make the situation worse.

“While revenue continues to shrink, the nation continues to dig its feet deeper into debt.

“At different times over the past few years, various international bodies including the World Bank, International Monetary Fund and the World Trade Organization have warned about the excessive nature of the country’s borrowing.

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“While some stakeholders have canvassed that the revenue to GDP ratio of the country is healthy, a recent announcement by the Minister of Finance, Budget and National Planning that the revenue to debt service ratio is in the negative, calls for urgent concern.

“In April, the World Bank warned that the rising cost of fuel subsidy could significantly impact public finance and pose debt sustainability concerns.

“Alas, this projection is almost happening. The Fiscal Performance Report released recently by the Federal Government confirmed the accuracy of these projections.

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“The combination of a struggling aviation sector and roads taken over by bandits have also conspired to fuel the situation, leading to rising inflation at 18.6% (according to the NBS).

“These have continued to worsen the promotion of Commerce and the increase the rate of de-industrialization of some regions of the country.”

The DG of the umbrella body for employers in the country, while recommending how to deal with the multi-face challenges, called for “a deliberate and economic priority influenced approach and wide consultation with Stakeholders should commence, with the view of harvesting alternative policy options to re-energize all sectors of the economy.

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“While the challenges of revenue shortage are acknowledged, burdening businesses with new taxes or levies will be counter-productive and self-destructive action.

“Over-burdening already burdened businesses will only lead to business closure and an escalation of job losses with consequential effects on our social and economic stability.

READ ALSO: VAT War Between FG, States Affected Our 2022 Budget Proposal – Bauchi Govt

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“Government should, in the short-term widen the tax net, reduce wastages in governance, and focus on economic projects that will stimulate the Nigerian economy and guarantee an enabling environment for businesses to operate.

“An enabling environment for local businesses will create the platform for new foreign direct investment, which could increase FOREX inflow into the country.

“In the medium term, the Federal Government should, as a matter of urgency, fix the four national refineries and encourage the development of Modular ones as a precursor to total removal of fuel subsidy.

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“With over N5 trillion budgeted for subsidy payment in 2022, an amount larger than the budget for education and agriculture, this is unrealistic and unsustainable.

“Economic interventions aimed at improving living standards (to stimulate consumption) and Enterprise sustainability (to promote job creation) should be implemented.

“While FOREX scarcity persists, allocation of the available FOREX to manufacturing and other productive sectors of the economy should be given priority.”

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Nigerian Stock Market Hits 10th Consecutive Uptrend As investors Gain N308bn

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The Nigerian Stock Market recorded its 10th consecutive uptrend as investors raked in N308 billion gain on Thursday.

This comes as the Nigerian Exchange Limited, NGX, market capitalisation, which opened at N92.490 trillion, appreciated by 0.33 per cent to close at N92.798 trillion on Thursday.

Also, the All-Share Index added 0.33 per cent, or 485.25 points, to close at 146,204.34, compared with 145,719.09 recorded on Wednesday.

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READ ALSO:Asian Stocks Rise As Trump Postpones Mexico, Canada Tariffs

Increased trading in Eunisell Interlinked, Caverton Offshore Support Group, Sunu Assurances, Industrial and Medical Gases, Mecure, and 27 other advancing stocks boosted market performance on Thursday.

To this end, the market breadth also closed positive with 32 gainers and 21 losers.

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Further analysis showed that Eunisell Interlinked and Caverton Offshore Support Group led the gainers’ chart by 10 per cent each, closing at N44 and N6.93 per share, respectively, while FTN Cocoa Processors led the losers’ table by 6.67 per cent, closing at N5.60 per share.

READ ALSO:UK Stock Markets Plunge In Biggest Daily Fall Amid Trump Tariff

Market activity showed a decline in the number of deals and volume traded but an improvement in trade value.

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Accordingly, a total of 346.99 million shares worth N27.43 billion were traded in 24,691 deals, compared with 525.72 million shares worth N13.61 billion exchanged in 25,597 deals on Wednesday.

Fidelity Bank topped the activity chart with 42.01 million shares valued at N861.54 million.

According to DAILY POST, NGX has continued its bullish run from last month’s end to date.

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CBN Sets POS Maximum Transactions In Fresh Guidelines

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The Central Bank of Nigeria has rolled out fresh guidelines for agent banking, known as Point of Sales, across the country.

The apex also in the guidelines pegged daily POS transactions at N1.2 million per agent and N100,000 per individual.

CBN disclosed this in a circular signed by its Director of the Payments System Management Department, Musa Jimoh.

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The guidelines further mandate all financial institutions to publish the list of all their POS agents on their website and to display it in their branches.

READ ALSO:CBN Establishes New Unit To Tackle Financial Crime

CBN noted that the guidelines would take effect from April 1, 2026.

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“The Guidelines aim to establish minimum standards for operating agent banking in Nigeria, enhancing agent banking to provide financial services and promoting financial inclusion, encouraging responsible market conduct and improving service quality in agent banking operations.

“This circular takes effect from the date of release, while the implementation of agent location and agent exclusivity shall be in effect from April 1, 2026.

“POS agents are restricted to a maximum of N1.2 million per day. Individual customers are limited to N100,000 in daily transactions.

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“These limits are intended to curb misuse, enhance financial integrity, and protect consumers within the agent banking framework,” it stated.

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Naira Records First Appreciation Against US Dollar At Official Market

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The Naira recorded appreciation on Wednesday against the United States dollar at the official market, the first time in three days this week.

The Central Bank of Nigeria’s exchange rate data showed that the Naira strengthened to N 1,470.62 per dollar on Wednesday, up from N1,471.09 traded on Tuesday.

This means that the country’s currency firmed up slightly by N0.47 against the dollar on a day-to-day basis.

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READ ALSO:Naira Appreciates Massively Against US Dollar In The Black Market, Highest In 15 Months

Monday and Tuesday, the Naira recorded negative sentiment at the official foreign exchange market.

However, at the black market, the Naira remained unchanged at N1,500 per dollar on Wednesday, the same rate exchanged on Tuesday.

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The apex bank data indicated that the country’s external reserves, a determinant of the exchange rates, stood at $42.57 billion as of October 7, 2025.

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