Nigeria’s total import from Malta rose was N766.81 billion in the third quarter of 2024, according to an analysis of the foreign trade statistics reports released by the National Bureau of Statistics (NBS), as reported by Nairametrics.

Although the specific product imported from Malta was not disclosed by the NBS, there were earlier controversies on the sudden increase in Nigeria’s import from the small Southern European country, following an accusation by Aliko Dangote, chairman of Dangote Industries Limited, against Nigerian National Petroleum Company Limited (NNPCL).

Nairametrics observed that there was no record of import from Malta in the first and second quarters of 2024.
However, by the Q3 2024, the import from this country accounted for 5.23% of Nigeria’s total import of N14.67 trillion.

Malta was Nigeria’s fifth largest import trading partner in this quarter, according to the NBS.

The report read, “Analysis by trading partners reveals that imports from China were valued at N3,574.79 billion, representing 24.36% of total imports. This was followed by imports from India with N1,662.68 billion (11.33% of total imports), Belgium with imports valued at N1,632.89 billion or 11.13% of total imports, United States of America with goods valued at N1,024.44 billion (6.98% of total imports) and goods from Malta valued at N766.81 billion or 5.23% of total imports.”

Highest import from Malta on record
Nairametrics further observed that the figure recorded in Q3 2024 is the highest value of import from Malta on record.

The N766.81 billion recorded in only Q3 2024 is 74.1% of the total imports from Malta recorded in three quarters of 2023.

However, this may be largely due to naira devaluation, which has increased the value of imports in naira terms.

Nairametrics earlier reported that Nigeria’s total import from Malta rose from zero to about N1.03 trillion in 2023, according to an analysis of the foreign trade statistics reports released by the NBS.

A cursory review of the NBS reports show that Nigeria’s total import for 2023 was N35.92 trillion, which indicates that about 2.87% of Nigeria’s total imports were from Malta, despite no record of any international trade between the two countries in 2022.

Nairametrics further observed that the import from Malta was 8.41% of the total import from Europe, which was about N12.25 trillion in 2023.

In the first quarter of 2023, Nigeria’s imports from Malta recorded a value of zero, representing 0% of the total imports for that period. This lack of imports set a stark contrast for the subsequent quarters.

By the second quarter, import from Malta was N181.55 billion, accounting for 3.17% of Nigeria’s total imports for the period.

The upward trend continued into Q3 2023, with imports from Malta soaring to N561.37 billion, representing a 6.64% share of the total imports for the quarter, showcasing a significant increase of 209.20% when compared to the previous quarter.

However, by Q4 2023, there was a sharp decline in the value of imports from Malta. The imports dropped by 48.01% to N291.98 billion, contributing to only 2.07% of Nigeria’s total imports for the quarter.

Since there was no import from Malta in the first quarter of 2023, it likely means that importation from this Southern European country started in Q2 to Q4 2023.
For these three quarters, Nigeria’s total imports was N29.45 trillion, which further suggest that the percentage of imports from Malta was about 3.5% of total imports within that period.

What you should know
The unexpected spike in imports from Malta, a country not typically known for its prominence in global oil markets, caused a stir and spurred speculation.

Aliko Dangote, chairman of Dangote Industries Limited, alleged that personnel from the Nigerian National Petroleum Company Limited (NNPCL), along with oil traders and terminal operators, have established a blending facility in Malta.

This plant, which lacks refining capabilities, produces finished motor gasoline by blending oxygenates with motor gasoline and other components.

Dangote publicly accused the owners of the Malta blending plant of undermining Nigeria’s oil production potential.

In response to these claims, Mele Kyari, the group chief executive officer of NNPCL, categorically denied any association with the blending plant, except for a minor local agricultural venture.

He also dismissed any knowledge of NNPCL employees being involved in such activities. Kyari asserted that the blending plant in Malta, or any similar facility worldwide, has no impact on NNPCL’s operations or strategic decisions.

Nairametrics

Nigerian economists are optimistic that the Naira’s appreciation against the dollar, if sustained, may lead to a drastic reduction in the prices of imported goods, by extension the country’s headline inflation, which stood at 33.88 percent in October, 2024.

The Chief Executive Officer of SD & D Capital Management, Gbolade Idakolo, and Prof. Godwin Oyedokun, a don at Lead City University in Ibadan, disclosed this in separate interviews with DAILY POST on Monday.

Idakolo and Oyedokun spoke as the Naira settled at N1,538.50 per dollar on Monday, December 9, 2024, from N1,740 exchanged on November 9, the same year.

On a month-on-month basis, the Naira gained N201.5 and N110 at official and black markets when compared to the N1,740 exchange rate on November 9, 2024.

This is the case despite the Naira depreciating slightly by N3.5 and N30 against the dollar to begin the week on Monday at both FX markets.

This followed the Central Bank of Nigeria’s recent launch of the Electronic Foreign Exchange Matching System (EFEMS) to eliminate distortion and bring transparency to the FX market.

Meanwhile, this is not the first time the Naira has appreciated upon CBN’s policy interventions.

However, the Naira gain has always been short-lived and temporary.

DAILY POST reports that the development had impacted the FX rate used for import duties and cargo clearance, which was at N1645 per dollar Tuesday last week.

Reacting, Idakolo noted that with proper monitoring by CBN, the EFEMS platform is a game changer to the country’s FX market.

According to him, EFEMS had created fear in the parallel market ecosystem, which had reduced unnecessary speculations negatively impacting the strength of the Naira.

He noted that with Naira appreciation, the exchange rate for import duties is bound to reduce, which will in turn impact the prices of imported goods.

“The newly introduced EFEMS platform by CBN for centralised bidding for forex is a game changer because of its transparency and the convergence of all previous bidding options into one platform.

“There is no room for manipulations so far, and all the quotes are shown on the platform for both bidders and sellers.

“This has created fear even in the unofficial forex market (black market) and reduced unnecessary speculations, which has negatively impacted the strength of the Naira.

“The CBN must continue to monitor the market and fulfil its regulatory obligations to all stakeholders.

“The BDCs must align to CBN’s reporting standards, and the banks must not fail to inflict heavy sanctions on erring players.

“The recent drop in the exchange rate for import duties is a step in the right direction, as clearing costs are bound to reduce, which will in turn impact the prices of imported goods.

“Clearing charges is a major component in costing imported goods, and with reduced charges, the prices will also be adjusted accordingly,” he told DAILY POST.

On his part, Oyedokun attributed the recent appreciation to CBN interventions, increased FX inflows, and reduced demand for dollars.

Like Idakolo, Oyedokun said that the strengthening of the Naira against the dollar could indirectly affect the prices of imported goods in Nigeria.

“While the recent drop in the import duties exchange rate may not directly impact the Naira’s exchange rate, it could indirectly affect the prices of imported goods in Nigeria.

“If importers can procure goods at a lower exchange rate, they may pass on these savings to consumers, leading to lower prices for imported goods,” he stated.

He, however, noted that several factors could mitigate this impact of the exchange rate drop on the prices of imported goods.

“Global Supply Chain Disruptions: Ongoing global supply chain issues may offset any benefits from the lower exchange rate.

“Domestic Economic Conditions: Domestic factors such as inflation, interest rates, and government policies can also influence the prices of imported goods.

“Importer Behaviour: Importers may not necessarily pass on the savings to consumers, opting to increase their profit margins instead”, he further told DAILY POST.

According to the Oyedokun, to sustain the Naira appreciation, the CBN needs to continue its efforts to maintain macroeconomic stability, attract foreign investment, and address structural issues.

He added that, “to sustain the Naira’s appreciation, the CBN needs to continue its efforts to maintain macroeconomic stability, attract foreign investment, and promote exports.

“Additionally, addressing structural issues such as corruption, insecurity, and inadequate infrastructure will be crucial.”

“It is important to note that the exchange rate is influenced by various factors, and the Naira’s appreciation may be temporary.

“Continuous monitoring and strategic interventions by the CBN will be necessary to ensure the sustainability of the Naira’s strength,” he stated.

DailyPost

First Bank of Nigeria has reaffirmed its commitment to supporting the arts and entertainment industry in Nigeria with its latest sponsorship of the YouTube series “A Heart on the Line”.

Nigeria’s movie, music, and entertainment industries is said to have grown by 27.46 per cent in the last three years to N1. 97 trillion in 2023 from N1. 55 trillion in 2020.

At the premier of the ‘A Heart in the Line’ last weekend in Lagos, Olusegun Alebiosu, Managing Director/Chief Executive Officer of First Bank Nigeria, represented by Idowu Thompson, Group Executive, Private Banking and Wealth Management explained that the bank’s involvement in the project is part of its efforts to promote Nigerian arts and culture.

“A Heart in the Line” is a thought-provoking movie that explores themes of love, family, and resilience. It also discovers the true meaning of love, family, and sacrifice.

Thompson explained that First Bank’s support for the arts goes beyond sponsorship, as it seeks to promote Nigerian culture and creativity globally.

Group Executive, Private Banking and Wealth Management also noted that the bank’s involvement in the project is also aimed at reaching out to younger generations and promoting a meeting of minds between the old and the new.

He said over the years, the bank has been deliberate in supporting the creative industry, a developing sector with enormous potentials to provide solutions to unemployment and ensure economic growth.

“Through First@Arts initiative, we have consistently supported initiatives that preserve the legacy of arts, culture and we also promote several activities that engender unity, education and entertainment which are major dividends of the creative industry”, he said.

The series for “A Heart in the Line” is available on YouTube, and Thompson hinted that it may be distributed on other platforms in the future.

When asked about the bank’s motivation for supporting the arts, Thompson explained that the arts and entertainment industry is a significant contributor to the Nigerian economy, with the film industry alone contributing significantly to the GDP.

Recently, First Bank sponsored International Theatre Festival where four countries – Nigeria, USA, South Africa and Zambia and various groups across the globe participated

The festival, an initiative of Bolanle Austen Peters and sponsored by First Bank of Nigeria and other brands in partnership with Lagos State government took the shape of Festac 77 cultural exhibition.

The festival also showcased Nigerian culture and creativity through diverse performances, production and artistic expression, highlighting the country’s cultural heritage and creative talent .

The commencement of the N50 Electronic Money Transfer Levy (EMTL) has attracted a myriad of directions

The development came as fintech firms such as Opay, Palmpay, Moniepoint, and others began the EMTL charge this month

However, some transactions are exempted from the EMTL charges, including transfers under N10,000 and those within the same financial institution

Nigerians have reacted to the commencement of the N50 Electronic Money Transfer Levy (EMTL) on transactions in financial technology companies such as Opay, Palmpay, Moniepoint, and others.

The fintech firms notified users on Sunday, December 1, 2024, that the charges would commence on Monday, December 2, 2024.

earlier reported that the companies had scheduled to begin the new charges on September 9, 2024, but was delayed due to outcry among Nigerians.

According to company messages, the EMTL is a one-off N50 charged on every transaction from N10,000 and above. The EMTL was ordered by the Federal Inland Revenue Service (FIRS) on behalf of the Nigerian government and aligns with the 2020 Finance Act.

Fintech platforms disclosed that the move complies with the Nigerian Stamp Duty Act, asking them to charge N50 for every N10,000 and above on the recipient’s accounts This development has led Point of Sale (PoS) operators to increase their charges, as they say the new directive has impacted them.

They reveal that any money sent into their accounts would attract N75 extra charge as the EMTL would also be charged to their accounts. According to them, when they receive money from anyone on behalf of their customers, they will incur an N50 EMTL charge, making them liable for the electronic transfer charges.

They disclosed that they have to factor the EMTL into their charges to make a profit. Meanwhile, some transactions are exempted from the EMTL charges.

According to the 2023 Finance Act, transfers under N10,000 and below and accounts within the same financial institutions are exempted from the EMTL charge. Collecting and remitting the Levy involves financial institutions collecting the levy on each qualifying electronic transfer, and remission is expected to be made to FIRS within the stipulated time.

The naira appreciated to N1,600 to the dollar at the parallel section of the foreign exchange (FX) market on Friday.

The currency appreciated by a 6.70 percent gain from N1,715/$ recorded on December 5.

Currency traders in Lagos, also known as bureau de change (BDCs) operators, quoted the buying rate of the dollar at N1,570 and the selling price at N1,600 — leaving a profit margin of N30.

The dollar rate represents the lowest price the greenback has been sold since August 13 when the naira traded at N1,595/$.

In the first week of December, the naira experienced a positive outing in the parallel market.

According to traders in the parallel market, the local currency appreciated to N1,730/$ on Monday — from N1,735/$ traded on November 29.

The naira appreciated further, trading at N1,725/$ on Tuesday, and N1,695/$ on Wednesday.

However, on Thursday, the naira reversed the appreciation streak, declining to N1,715/$.

In the official window, the naira appreciated from December 2 to December 6.

The naira traded at N1,672 per dollar on November 29, however, data from the newly introduced electronic foreign exchange matching system (EFEMS) platform, showed that the local currency appreciated to N1,660/$ on Monday.

Naira extended its gains to Tuesday after settling at N1,625/$ at the close of business, before appreciating further to N1,608/$ on Wednesday and N1,567/$ on Thursday.

At the close of trading on Friday, the naira appreciated to N1,535/$.

On October 3, the apex bank announced the introduction of the EFEMS FX matching system, which kicked off on December 1.

Three days later, Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), said the apex bank’s decision to implement the EFEMS shows the financial regulator is serious about fair and efficient markets.

The United Bank for Africa (UBA) Group has unveiled plans to establish a branch in Saudi Arabia and expand its footprint across Africa by 2025.

The announcement was made by the Group Managing Director and Chief Executive Officer, Oliver Alawuba, during a send-forth dinner held in Abuja on Wednesday to honor the bank’s retired non-executive directors.

He insisted on the bank’s focus to build a sustainable institution, Alawuba disclosed recent developments.

“Our chairman was in Saudi Arabia recently and announced that UBA will establish its presence there next year. We will also launch additional African subsidiaries, ensuring that the bank grows from strength to strength,” he added.

“UBA’s strategic expansion into Saudi Arabia and the establishment of additional African subsidiaries mark a significant step in its growth trajectory” he said.

Alawuba commended the contributions of the retirees to building the institution’s legacy, stating that “UBA currently employs over 25,000 staff and serves more than 45 million customers across 24 countries, and the UBA that will continue to thrive for generations.”

The UBA Chairman, Tony Elumelu, also praised the retired directors and their families for their dedication and sacrifices during his remarks at the event.

Elumelu described UBA as more than a financial institution, emphasizing its familial culture.

“At UBA, we are more than just a bank; we are a family. These individuals have been selfless, ultra-dedicated, and instrumental to the success we have achieved in Nigeria, Africa, and globally. We owe a debt of gratitude to their families for the support they provided,” he said.

One of the retirees, Kayode Fashola, shared his experience of working with UBA, expressing appreciation to Elumelu for entrusting him with critical responsibilities despite being a newcomer.

Fashola remarked: “To work with Elumelu, you must be committed, dedicated, and skilled. He entrusts everything into the hands of someone he doesn’t know. I was a stranger to him, and he appointed me as the Chairman of the General Purpose Committee, which I ran for four years without interference.”