This afternoon, a Central Bank of Nigeria (CBN) circular sent to commercial banks and other financial institutions surfaced online. Here is a thread explaining what the circular means and why the CBN issued it.
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Cryptocurrencies have gained popularity since bitcoin, the most valuable crypto, rose significantly four years ago. The coin went from $900 in January 2017 to almost $20,000 by the end of that year.
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While cryptocurrencies are known for people making (or losing) money from trading, they have many use cases, including making cross-border payments, remittances or storing wealth (protected from inflation or exchange rate depreciation).
You’ve seen everyone talking about sachets this week. From Baileys Delight to Morning Fresh. This thread clarifies the pros and cons of “sachetisation” and identifies opportunities in the sachet economy.
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Why sachets? These sachets are a manifestation of Nigeria’s struggle—from low purchasing power to our credit gap. 83 million Nigerians in informal jobs make only around ₦1400 a day.
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PROS (3)
1)Cash management - Only 6% of the population have access to loans. Without credit, people can only buy goods and services that they can afford *right now*.
That’s the number of times Nigeria’s cash cow, @NNPCgroup, has publicly released its financial statements in its entire history.
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It released the 2018 accounts in June and 2019 accounts last month. Twice in 5 months. What a time to be alive.
In this thread we highlight the major profit and loss centres at NNPC and talk about salaries, which attracted some attention last week.
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. @NNPCgroup made a loss of ₦1.7 billion in 2019 despite earning revenues of over ₦4.6 trillion. Of the group’s 21 Strategic Business Units (SBUs), the refineries were the major loss drivers.
Over the past week, many have noticed the spike in food prices, and as usual, we’re here to make sense of it.
This thread isn’t just a story about “why food prices are rising”, but it’s also about “ why food prices seem to be rising more than official numbers suggest”
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So why is this the case?
The main thing to note is that inflation rates capture price increase across a wide range of goods across the entire country.
But for context, let’s look into how they are calculated.
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The @nigerianstat calculates food inflation by getting price information about certain food items from over 10,500 informants across the country.