₦airaland Forum

Paraman:
Nigerian companies have started to settle their overdue dollar obligations, Bloomberg reports.


MTN Nigeria, the country’s largest mobile operator, capitalised on the enhanced liquidity within the foreign exchange market.

Chief Financial Officer, Modupe Kadiri, revealed during an investors conference call last week that MTN Nigeria managed to decrease its letters of credit obligations by 41.6%, reducing them from $416.6 million in December to $243.4 million.

Taking advantage of the enhanced dollar liquidity, BUA Foods, Nigeria’s largest food and beverage company, reduced its debts by approximately 6% in the first quarter of this year, according to Managing Director Ayodele Abioye.

He expressed optimism about the future, stating, “Dollar availability will no doubt have a positive impact going forward and we are optimistic of better performance for half-year 2024,” he said.


Likewise, Cadbury Nigeria has been able to access all its dollar needs from the official market since the start of the year, Finance Director Ogaga Ologe told Bloomberg by phone.

“Our local-currency cash has dropped because of us being able to buy foreign exchange in advance for the materials we need,” he said.




https://punchng.com/mtn-bua-foods-cadbury-clear-overseas-debts-as-dollar-supply-improves/?utm_source=telegram&utm_medium=social

SadiqBabaSani:
Whenever Government wants to steal with a bogus project they will invest so much to push propaganda.

That is what is currently happening with the Lagos -Calabar Coastal project.

It is very clear that the execution of the project has several loopholes, but they are desperate.

Nigerian companies have started to settle their overdue dollar obligations, Bloomberg reports.

This follows recent reforms implemented by the Central Bank of Nigeria, which have resulted in increased liquidity within the Nigerian foreign exchange market.

According to Bloomberg’s findings, major Nigerian companies such as MTN Nigeria Communications Plc, BUA Foods Plc, and Cadbury Schweppes Overseas Limited’s Nigerian arm have confirmed their ability to procure dollars for fulfilling their foreign currency obligations.

This, according to the report, marks a notable shift from the previous scenario, where the scarcity of US dollars had hindered their ability to repatriate profits or settle payments to foreign suppliers.

Bloomberg reports that dollar liquidity surged by 90% to $160.8 million on Tuesday compared to the previous day, as noted in an emailed statement from Chapel Hill Denham on Wednesday.

The apex bank is also selling dollars to money traders to boost distribution to retail users.

Despite the increased liquidity, the naira depreciated by 1.2% to 1,416 against the dollar on Tuesday.

MTN Nigeria, the country’s largest mobile operator, capitalised on the enhanced liquidity within the foreign exchange market.

Chief Financial Officer, Modupe Kadiri, revealed during an investors conference call last week that MTN Nigeria managed to decrease its letters of credit obligations by 41.6%, reducing them from $416.6 million in December to $243.4 million.

Taking advantage of the enhanced dollar liquidity, BUA Foods, Nigeria’s largest food and beverage company, reduced its debts by approximately 6% in the first quarter of this year, according to Managing Director Ayodele Abioye.

He expressed optimism about the future, stating, “Dollar availability will no doubt have a positive impact going forward and we are optimistic of better performance for half-year 2024,” he said.


Likewise, Cadbury Nigeria has been able to access all its dollar needs from the official market since the start of the year, Finance Director Ogaga Ologe told Bloomberg by phone.

“Our local-currency cash has dropped because of us being able to buy foreign exchange in advance for the materials we need,” he said.

“The increased dollar liquidity is providing a respite for companies to pay down debts and cushion the effect of the devaluation,” Adetilewa Adebajo, economist and chief executive at Lagos-based CFG Advisory, said in a phone conversation with Bloomberg.


Adebajo emphasised that while liquidity has improved, it must be sustained over the next year to facilitate the desired turnaround for companies.

“Authorities need to make sure real rates are positive, that the interest rate is matching inflation and fiscal responsibility in terms of government spending is in check,” he said.

Bloomberg highlights that the Central Bank of Nigeria has implemented several measures since the start of the year to enhance liquidity within the economy.

These measures include increasing its benchmark rate by 600 basis points to incentivise capital inflows and removing the currency’s peg, allowing the market to determine the exchange rate of the naira.

The financial news publication said these actions have been taken in response to years of unconventional currency management practices which have discouraged investors and resulted in a scarcity of US dollars.

“Portfolio flows have responded positively to reforms with increased FX turnover,” Tatonga Rusike, sub-Saharan Africa economist at Bank of America Corp., said in an investment note.

“The average daily FX turnover has more than doubled from 2023 lows,” Rusike stated.

nlreserve:
So u don't know. But u can easily digest every wrong information about someone.

Malroux:
Another charade loading. What happened to Yeye Bello?

HisXLNC1:
Is the coastal road the reason the Port Harcourt port is not being used?

nlreserve:
who owns hitech?

FreeGlobe:
If the recent claim by Ngige that Peter Obi wasted over 2 trillion of state funds did not rattle Obi's supporters and paid agents on nairaland, the recent video recently released by the Ifeanyi Ubah campaign showing grossly dilapidated schools in Anambra will surely put them to sleep. Ifeanyi Ubah is slowly but surely winning my votes. Exposing the fraud called Peter Obi is a task that must be done and he is getting it done, first by calling Obi's community chief to denounce and then this video (All over national media) that will surely put Obi in bad light. I'm making contacts to get the video and post it here but if you get it before me, do post it.



................ developing

ablejesus26:
Most possible for all Apc is about is winning the elections at all cost and keep Power to dish out more suffering, Insecurity and hardship upon the Country.
May the strongest survive.

You and your co can zombie for them all You want,We are not joining you from this end😁

ablejesus26:
Hahahaha what is hypocrisy??

Apc is the greatest threat to your survival especially if You are not in the rich class,if You like cry Obi from now till 600years,if you like zombie for Apc from now till 600yrs nothing will change this REALITY 😁😁😁.
Zombiesm is never Patriotism.

ablejesus26:
Hahaha una matter just get as e be😁.

Tinubu and His evil APC are the greatest threat to the survival of common Nigerians including you if you are not in the rich class,this is what We know obtainable in REALITY, forget about Obi let's face what is obtainable in REALITY.

People dey suffer You,you still dey praise them,while the people wey dey call out the people wey dey suffer You,You dey vex dey curse them 😁😁😁

How the matter take dey do una for body sef 😁😁

Martartins:
So he should have closed the fidelity bank account Anambra state govt had immediately he assumed office?

nlreserve:
And the coastal road ongoing, who is handling it?

IfnobeGod20:
What of Tinubu that is investing $13trillions into a coastal highway

bentenny:
U guys keep regurgitating stale propaganda and hoping it will make sense to anyone!
U started off with an alleged 250million that according to u,was embezzled by an aide to

Passionate888:
BAT dey fear him? Make him go prosecute Obi na

SeeWahala:
Balabuuuu bula baaaaaa

SeeWahala:
Hahaha see am lol 😆 typical bulaba gazele gara gara yarns

SeeWahala:
Paraman, you made a post with a single punctuation mark, a full stop '.' and it got over 300 likes

What other evidence do tou want us to use in realising that it was done by robots roBATs and your agbad0 squad members?

Elusive001:
🤣🤣🤣🤣🤣🤣🤣🤣

I don't do tribal bigotry guy. I have Yorubas as friend and colleagues.

It's shamelessness at its finest that your small mind basks in the euphoria of tribalism. Let me tow your brainlessness a bit. Do you think that your people are immune to the current Shege wey dey ground? The suffering cares less of your tribe. You think PO is suffering it? You are indeed a 🤡🤡🤡🤡🤡🤡. You should concerned with the Ebi npịwazụ wey dey your side. I know that you are really suffering it, but the useless human nature of pride no go gree you accept the subhuman condition you live in.

You think I care about the tribe of the president? Noooooooo. My concern is having a better society for the suffering masses. My concern is for a society where people will blossom and flourish. A society with insignificant corruption, wickedness, injustice, nepotism, etc.

Enjoy your tribalism bro. Just make sure your friends, relatives and tribesmen whose brother is the president are not suffering like other Nigerians whose tribesmen are not the president.


Shamelessness at its finest.

phorget:
You better go queue for fuel station make you for see 1k per litter fuel buy.
Abokis that have been ruling you all these years wont even make noise nah now wey una get BATeria for power una no go let us rest.

Elusive001:
BATeria infested body

I didn't say "BATeria infested brain" because you must be brainless to support APC. So no brain to refer to.