Browsing: Nigeria

• Nigeria’s November PMI rose to 49.6 from 46.9 in October, marking its fifth consecutive month below the neutral 50.0 threshold.
• This reading signals an ongoing deterioration in business conditions in Africa’s biggest economy.
• Rising energy prices, expensive raw materials, and a weak naira continued to drive substantial input price inflation.

Nigeria’s private sector showed tentative signs of improvement in November 2024, as inflationary pressures eased slightly. However, steep price increases and subdued demand continued to choke businesses, pushing many to cut jobs and reduce purchasing activity.

The headline Purchasing Managers’ Index (PMI) rose to 49.6 from 46.9 in October, marking its fifth consecutive month below the neutral 50.0 threshold. This reading signals an ongoing deterioration in business conditions in Africa’s biggest economy, albeit at a slower pace.

“This less pronounced deterioration was primarily due to the return to growth of new orders in November,” said Muyiwa Oni, Head of Equity …

• Nigeria is pioneering the journey towards getting a strong foothold in the carbon credit market.
• The nation is aligning as part of continental effort under the African Carbon Markets Initiative (ACMI) that aims to mobilize up to $100 billion carbon credits per year by 2050.
• During the COP29 talks, Canada and Nigeria announced an alliance to create an innovative carbon credit model to support Abuja’s economic and ecological development. 

The African continent is facing increasing climate change impacts that are increasingly chocking the life of its struggling economies. With policymakers running out pf options to counter the economic slide, the emergence of the African Carbon Markets Initiative (ACMI) offers innovative options that could help unlock the continent’s carbon credit potential. A number of countries such as Nigeria are emeging as pioneers in tapping the gains that carbon markets present.

At this year’s United Nation Climate Change Conference of Parties …

• Lekki Deep Sea Port can now accommodate vessels with up to 7,000 TEUs (Twenty-foot Equivalent Units).
• Port’s ability to handle larger cargo volumes makes Nigeria a key gateway for goods entering and leaving West Africa.
• Lekki Port taps into global best practices in maritime logistics and safety standards.

Nigeria’s maritime industry has received a timely boost with the launch of the COSCO, Singapore headquarted ONE (Ocean Network Express), and ZIM alliance services at Nigeria’s Lekki Deep Sea Port last week.

This initiative not only enhances Africa’s biggest economy’s connectivity to global trade routes but also promises to stimulate economic growth by attracting foreign investment, increasing trade capacity, and fostering efficiency in logistics.

Expanding capacity of Nigeria’s maritime trade

The arrival of the E A Centaurus, the largest COSCO vessel to dock in Nigeria, is a pointer to the heightened capacity of Lekki Deep Sea Port, which now accommodates vessels with …

• Stanbic IBTC Bank Nigeria’s headline PMI declined to 46.9 in October from 49.8 reported in September.
• This is a pointer that the country suffered a marked deterioration in business conditions during the start of the fourth quarter.
• Stanbic Bank report says this was the most pronounced dip in private sector trade activity since March last year.

Nigeria suffered the third-fastest rise in overall input prices on record in October 2024 forcing a downturn in the country’s private sector activity at the start of the final quarter of the year.

Stanbic IBTC Bank Nigeria’s headline PMI declined to 46.9 in October from 49.8 reported in September, a pointer that the country suffered a marked deterioration in business conditions. The bank said this was the most pronounced dip in trade activity since March last year.

Persistent price pressures across sectors saw consumers scale back on their spending priorities, contributing to a …

• Founded in 2022, Madica provides investment funding of up to $200,000.
• Nigeria-based Earthbond simplifies access to clean, affordable energy for African SMEs.
• Earthbond will gain from executive coaching opportunities, and access to Madica’s global network of investors for follow-on funding.

Madica, an investment program tailored for pre-seed stage startups in Africa, is channeling funding in Earthbond, a climate tech startup unlocking affordable, reliable solar energy for Nigerian SMEs.

Following the investment, Earthbond will participate in investment program which includes 18 months of dedicated mentorship support.

“We are excited to be investing in this exceptional startup as it tackles some of today’s biggest climate challenges. We won’t be able to continue the advancements of the African tech ecosystem without addressing power, and we are impressed by the team at Earthbond, their vision, and the technology that provides an affordable and eco-friendly solution. Earthbond has tremendous potential to drive an equitable clean …

• Financing by Venture Capital Firms (VC) is the leading source for injecting capital into startups, accounting for 29 percent of the deals.
• Findings show that venture debt is becoming a crucial funding tool, especially for climate tech startups with limited access to traditional equity financing.
• The survey notes that to support this growth, investments in digital and energy infrastructure are essential.

Kenya is emerging as a leader in sourcing capital for its agricultural technology and food startups across the African continent. A large portion of capital for African startups still comes from foreign countries, with approximately 60 per cent, coming from international sources, primarily the United States and the United Kingdom.

On the continent, however, most investors are concentrated in Kenya, Nigeria, and South Africa, where innovation and funding activity are most prominent. Large-scale investments in solar energy solutions and precision agriculture partly drive Kenya’s dominance in the sector.

Read …

• Sub-Saharan Africa economic growth remains stuck in “low gear” with a large youth population at risk of being left behind—The World Bank.
• Currently, seven in 10 children in Sub-Saharan Africa do not have access to pre-primary education.
• The World Bank says stabilizing economies and transforming education to equip the region’s growing workforce with stronger foundational skills and market-relevant expertise is critical.

Despite signs of a fragile economic recovery, Sub-Saharan Africa economic growth remains stuck in “low gear” with a large youth population at risk of being left behind. According to the latest analysis by the World Bank’s Africa Pulse, two factors are critical to jumpstart inclusive growth: stabilizing economies and transforming education to equip the region’s growing workforce with stronger foundational skills and market-relevant expertise.

The report, which is in its 30th edition and on the theme of Transforming Education for Inclusive Growth, says economic activity in the region …

• The latest Stanbic IBTC Bank Nigeria PMI shows most companies continued to report less demand, attributable to an increase in the cost of products.
• Nigerian industries reported the sharpest rise in input costs and output prices in six months.
• High pump prices, transportation, and materials for manufacturers continued to hurt businesses in the month under focus.

Inflation in Nigeria

Rising inflationary pressures in Nigeria hit businesses hard at the close of the third quarter, with selling prices increasing by the sharpest margin in six months. The country’s private sector reported marginal job opportunities in September, the lowest in the previous three months.

According to Stanbic IBTC Bank Nigeria PMI, most companies continued to report less demand, attributable to an increase in the cost of products amid thinning incomes. Findings show that business confidence dipped in September and was the second lowest level on record, only just above July.

“Nigeria’s …

• With its multiple technologies, Bboxx is trailblazing in the green energy space, scaling its operations across Africa and projecting to offset over 20 million tonnes of CO2.
• Bboxx has been awarded Gold Standard certification for carbon credit programs based on solar home systems, clean cooking alternatives, and solar-powered water pumps.
• Implementing carbon programs allows Bboxx to accelerate market growth potential by reaching over 4 million customers in five African countries.

Rwanda-based Bboxx plans to offset over 20 million tonnes of carbon and generate $100 million worth of carbon credits through clean energy projects in Africa.

In this initiative, Bboxx projects to positively impact the lives of over four million customers across Rwanda, Kenya, Nigeria, Togo, and the Democratic Republic of Congo (DRC).

These revelations follow Bboxx’s recognition with the Gold Standard certification for its continued rollout of clean energy projects in five African countries. This certification marks a vital moment …