Business

CBN Reveal Guidelines For Launching e-Naira Digital Currency Wallet

As Nigeria awaits the roll-out of the proposed Central Bank Digital Currency (CBDC) on the 1st of October, 2021, the Central Bank of Nigeria (CBN) has also released a set of guidelines that will ensure a coordinated roll-out of the state-backed digital currency (e-Naira). The guidelines are meant to show Nigerians how the e-Naira will regulate, designed, and issued.

Part of the guidelines shows that the e-naira digital currency will be accessible to both bank account and non-account holders. It will have a set limit on the value of transactions customers can carry out with it. Perhaps most importantly is the fact that the e-naira will have a legal tender and non-interest-bearing asset status.

The apex bank has moved quickly to create a wallet that will house the digital currency. Ultimately, the commercial banks and licensed operators will be responsible for creating wallets for the e-naira but the CBN is untaking this task at this stage in a bid to meet up the set date for the roll-out – which is October 1st, 2021. This wallet will “serve as a means to transact value, pending when banks and other innovators can provide their own wallets,” and will come in three tiers.

The first tier (Tier 1) will cater to Nigerians who do not have an existing bank account. This group will also have access to the digital currency but will have to tender their names, addresses, phone numbers, gender, place & date of birth, and a passport photograph. It also comes with a transaction limit of ₦50,000 daily and a cumulative balance of ₦300,000 fixed .

The second tier (Tier 2) are for those who have an existing bank accounts. The minimum requirement for this level is a Bank Verification Number (BVN) and it comes with a transaction limit of ₦200,000 daily and a cumulative balance of ₦500,000. The last tier (Tier 3) also allows the BVN as its minimum requirement and has a daily transacting limit of up to ₦1,000,000 daily with the cumulative balance set at ₦5,000,000.

The launch of Nigeria’s CBDC will take palce in five phases. The first part of the e-naira rollout will be handled by the CBN. This will involve the issuing, distribution, redemption, as well as the destruction of the currency. The second phase will see commercial banks and other licensed financial institutions able to request currency or issue stablecoins. According to the guidelines, they will also “manage digital currency across branches, KYC, identify and AML compliance capability.”

The third phase will see the government “process digital payments sent to and received from citizens and businesses.” At the fourth stage are merchants who are expected to provide “low-cost payment and business management software, POS, remote payment solutions, online capabilities, transaction analysis and reconciliation.” The last stage, which is also known as the Retail Consumer Suite, will focus on the digital currency’s architecture.

Business

NBS Releases New Food Inflation Figures, Price of beans rises 272%, eggs 122% in a year

The National Bureau of Statistics (NBS), says prices of beans, eggs, bread, rice, yam, and other food items witnessed significant price increases in August 2024.

The NBS said this in its Selected Food Prices Watch report for August 2024 released in Abuja on Wednesday.

The report said that the average price of 1kg of brown beans increased by 271.55 percent from N692.95 recorded in August 2023 to N2,574.63 in August 2024.

“On a month-on-month basis, 1kg of brown beans increased by 5.31 percent in August from the N2,444.81 recorded in July 2024.”

It said that the average price of medium-sized Agric eggs (12 pieces) increased by 121.92 percent yearly from N1,031.55 recorded in August 2023 to N2,289.19 in August 2024.

“On a month-on-month basis, the eggs increased by 5.48 percent from the N2,170.17 recorded in July 2024.”

The report said that the average price of sliced bread increased by 113.16 percent on a year-on-year basis from N684.85 in August 2023 to N1,459.85 in August 2024.

“On a month-on-month basis, the price increased by 2.28 percent from the N1,427.25 recorded in July 2024.”

In addition, the average price of 1kg of local rice rose by 148.41 percent on a year-on-year basis from N737.11 recorded in August 2023 to N1,831.05 in August 2024
“On a month-on-month basis, it increased by 3.65 percent from N1,766.64 recorded in July 2024.”

Also, the report said that the average price of 1kg of a tuber of yam increased by 188.31 per cent on a year-on-year basis from N576.39 in August 2023 to N1,661.80 in August 2024.

“However, on a month-on-month basis, the price decreased by -7.82 percent from the N1,802.84 recorded in July 2024.”

The NBS said the average price of 1kg of tomato also increased on a year-on-year basis by 171.72 per cent from N554.37 recorded in August 2023 to N1,506.35 in August 2024.

“However, on a month-on-month basis, the average price of 1kg of tomato declined by 11.07 per cent from N1,693.83 in July 2024 to N1,506.35 in August.”

The report analyzed state profiles and showed that in August 2024, the highest average price of 1kg of brown beans was recorded in Akwa Ibom at N3,276.79, while the lowest was recorded in Adamawa at N1,710.92.

It said that Niger recorded the highest average price of medium size Agric eggs (12 pieces) at N2,996.92, while the lowest was in Jigawa at N1,786.01.

The NBS said that the highest average price of sliced bread was recorded in Rivers at N1,850, while the lowest price was recorded in Yobe at N908.81.

According to the report, Kogi recorded the highest average price of 1kg local rice (sold loose) at N2,680.29, while Benue reported the lowest at N1,206.84.

The report said the highest price of 1kg of tomato was recorded in Abuja at N2,2206.31, while the lowest price was recorded in Kaduna at N734.94.

Analysis by zone showed that the average price of 1kg of brown beans was highest in the South-south at N3,165.11, followed by the North-central at N2,900.86.

“The lowest price was recorded in the North-West at N1,982.78.”

The North-central and South-east recorded the highest average prices of medium-size agric eggs (12 pieces), at N2,789.15 and N2,438.06, respectively, while the lowest price was in the North-West, at N1,963.65.

The report said that the South-South recorded the highest average price of sliced bread at N1,785.56, followed by the South-east at N1,635.73, while the North-east recorded the lowest price at N1,163.78.

The NBS also said that the South-west and the South-south recorded the highest average price of 1kg of local rice (sold loose) at N1,960.87 and N1,886.32 respectively.

“The North-west recorded the lowest price of 1kg of local rice (sold loose) at N1,591.21.”

The News Agency of Nigeria (NAN) reports that in July, the federal government granted a 150-day duty-free import window for some food commodities in a bid to address the incessant increase in food prices and ensure food security.

The suspended duty tariffs and taxes will apply to the importation of certain food items across land and sea borders, including maize, cowpeas, wheat, and husked brown rice.

However, experts have suggested more sustainable measures such as addressing the issue of insecurity, foreign exchange, and transportation costs to address the soaring food prices and ensure food security.

Business

Five Myths About CNG Cars Demystified

With the rising prices of petrol, Nigerians are now forced to consider alternative fuels like CNG as a cost-effective solution to power their cars. CNG-powered cars offer a viable option for those looking to save on fuel.

CNG vehicles have faced skepticism despite being greener and leaving fewer emissions than petrol or diesel cars. Here are some of the common Myths About CNG Cars Demystified

Myth 1: CNG can’t be used for long-distance travel

Although CNG vehicles typically have a shorter range than gasoline cars due to CNG’s lower energy density, this doesn’t make them impractical for long trips. Many CNG vehicles come with larger tanks or dual-fuel systems (CNG and gasoline), allowing for extended range. Additionally, with the expanding network of CNG stations, long-distance travel with CNG vehicles is becoming more convenient and feasible.

Myth 2: CNG is expensive

While CNG cars may cost more upfront, CNG itself is cheaper than petrol, making long-term savings substantial.

Myth 3: CNG cars are unsafe

Contrary to popular belief, CNG is safer due to its higher ignition temperature compared to petrol. CNG operates at 700°C, while petrol ignites at 455°C, reducing the risk of fire. CNG cylinders are also rigorously tested for safety, making them tougher than traditional petrol tanks.

Myth 4: CNG cars are unreliable
CNG cars are just as durable as petrol cars, if not more so. CNG is lighter and non-corrosive, helping engines last longer and lowering repair costs. CNG vehicles also require less frequent oil changes, making them a convenient choice for busy individuals.

Myth 5: CNG is as harmful to the environment as other fossil fuels

One of the key benefits of CNG is its reduced environmental impact. CNG emits 25-30% less carbon dioxide (CO2) than gasoline and diesel, making it a more climate-friendly option that helps reduce greenhouse gas emissions. CNG produces significantly lower levels of nitrogen oxides (NOx) and particulate matter (PM), pollutants that contribute to smog, acid rain, and respiratory issues. By emitting fewer harmful substances, CNG improves air quality and supports better public health

Business

Dangote Group Debunks NNPC’s Claim Of Buying Petrol At N898 As ‘Misleading’, Says Products Sold In Dollars, Not Naira

Dangote Group has described a statement by the Nigerian National Petroleum Company (NNPC) Limited that it bought petrol at N898 per liter as “misleading and mischievous”.
The NNPC earlier on Sunday announced its fuel purchase from Dangote Refinery at a rate of N898 per liter. NNPCL dispatched about 300 trucks to the 650,000 barrels per day capacity refinery in Lagos on Saturday, with loading operations commencing on Sunday.

A spokesperson for the NNPCL, Olufemi Soneye, on Sunday, told Daily Trust the company bought the fuel at N898 per liter contrary to reports claiming N760
“We successfully loaded PMS at the Dangote Refinery today. The claim that we purchased it at N760 per liter is incorrect. For this initial loading, the price from the refinery was N898 per litre,” he said.

However, in a statement on Sunday evening, Anthony Chiejina, Dangote Group’s Chief Branding and Communications Officer knocked the claim made by the NNPC.

He said, “Our attention has been drawn to a statement attributed to NNPCL spokesperson, Mr. Olufemi Soneye, that we sell our PMS at N898 per litre to the NNPCL.

“This statement is both misleading and mischievous, deliberately aimed at undermining the milestone achievement recorded today, September 15, 2024, towards addressing energy insufficiency and insecurity, which has bedeviled the economy in the past 50 years.

“We urge Nigerians to disregard this malicious statement and await a formal announcement on the pricing, by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by His Excellency, President Bola Ahmed Tinubu GCFR, which will commence on October 1, 2024, bearing in mind that our current stock of crude was procured in dollars.

“It should also be noted that we sold the products to NNPCL in dollars with much savings against what they are currently importing. With this action, there will be petrol in every local government area of the country regardless of their remote nature.”