Economy
2024: Expert Predicts Likely Economic Hardship, Urges Nigerians to Spend Wisely
A Development Economist, Prof. Chiwuike Uba, has predicted the likelihood of further economic hardship in 2024, and urged Nigerians to spend every kobo they earn wisely.
Uba, the Executive Director, Amaka Chiwuike Uba Foundation (ACUF) Initiative for Policy and Governance, an NGO, gave the advice while speaking with newsmen in Enugu on Tuesday.
The economist said that considering the prevailing cost-of-living crisis and the mounting pressure on incomes, it is crucial for Nigerians to redirect their spending towards essential and affordable indulgences.
According to him, it is imperative to prioritise prudent use of resources, as Nigeria may encounter even more profound economic challenges in 2024.
He noted that a prudent management of personal finances is not only profitable, but also ensures stability and sustainability in the face of economic adversity.
“To provide a deeper understanding of the prevailing conditions, recent data from the Nigeria Bureau of Statistics paints a vivid picture of the current state of affairs.
“According to the data, a staggering 62.9 per cent of the population, which equates to nearly 133 million people, is multi-dimensionally poor, constantly experiencing various forms of deprivations that extend beyond the purely financial realm.
“This means that a significant portion of the population endures hardships spanning multiple dimensions, with over 40 per cent of the people facing monetary deprivation alone.
“Moreover, the alarming inflation rate of 28.20 per cent as of November 2023 further underscores the exorbitant costs associated with basic goods and services,” he said.
Uba noted that despite these dire circumstances, one might hope that Nigerians, especially those most affected, would exercise greater fiscal caution, adding that regrettably such prudence and restraint are not commonly observed among Nigerians.
He said that counter intuitively, the spending habits of Nigerians, regardless of their financial standing, seem to follow patterns akin to those exhibited by governments at various levels when it comes to managing public resources.
“The persistence of these spending habits despite the afflictions of a struggling economy and widespread poverty serves as a reminder of the complexities embedded within the Nigerian society.
“It highlights the intricate interplay between cultural practices, economic circumstances, and the tendency to emulate the behaviors of those in power.
“While the expected frugality during the holiday (yuletide) season may seem logical, societal norms often steer individuals down a different path, leading to extravagant expenditures even in the face of adversity,” he said.
The economist said that despite the nation’s current state of austerity, where fiscal prudence should be paramount, the government continues to squander precious public resources as though the economy were in the golden age of prosperity.
“Disregarding the dire consequences on the overall wellbeing of the economy and the Nigerian populace, both national and sub-national governments persistently accumulate public debts in order to satisfy their insatiable appetite for wasteful expenditures.
“Simultaneously, many individuals are burdening themselves with debts in a desperate attempt to fulfill their yuletide shopping desires.
“At the end of each year, numerous employers bestow bonuses upon their employees, which, instead of being saved for the rainy day, are impulsively squandered during the festive season,” he said. (NAN)
The Nigerian Exchange Ltd. (NGX) continued its bullish trend on Wednesday, gaining N183 billion.
Accordingly, the market capitalisation, which opened at N59.532 trillion, gained N184 billion or 0.31 per cent to close at N59.715 trillion.
The All-Share Index also added 0.31 per cent or 303 points, to settle at 98,509.
68, against 98,206. 97 recorded on Tuesday.Consequently, the Year-To-Date (YTD) return increased to 31.
74 per cent.Gains in Aradel Holdings, Zenith Bank, United Bank For Africa(UBA), Oando Plc, Nigerian Breweries among other advanced equities drove the market performance up.
Market breadth closed positive with 34 gainers and 17 losers.
On the gainers’ chart, Africa Prudential, Conoil and RT Briscoe led by 10 per cent each to close at N14.30, N352 and N2.42 per share, respectively.
Golden Guinea Breweries followed by 9.95 per cent to close at N7.18, while NEM Insurance rose by 9.74 per cent to close at N10.70 per share.
On the other hand, Julius Berger led the losers’ chart by 10 per cent to close at N155.25, Secure Electronic Technology Plc trailed by 9.52 per cent to close at 57k per share.
Multiverse lost 7.63 per cent to close at N5.45, Haldane McCall dropped 6.07 per cent to close at N4.95 and Honeywell Flour shed 5.62 per cent to close at N4.70 per share.
Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 49.44 per cent.
A total of 320.10 million shares valued at N6.48 billion were exchanged in 7,943 deals, compared with 939.41 million shares valued at N12.81billion traded in 9,098 deals posted in the previous session.
Meanwhile, ETranzact led the activity chart in volume with 70.27 million shares, while Aradel led in value of deals worth N1.22 billion.(NAN)
The central parity rate of the Chinese currency renminbi, or the Yuan, weakened 22 pips to 7.1870 against the dollar on Monday.This is according to the China Foreign Exchange Trade System.In China’s spot foreign exchange market, the Yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.
The central parity rate of the Yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. (Xinhua/NAN)
Arewa Youths Initiative for Energy Reforms (AYIFER), has urged Nigeria National Petroleum Corporation Limited (NNPCL) to do everything possible to bring Kaduna Refinery back into operation.
National Coordinator of the group, Mr Bashir Al’Amin, stated this in a statement issued on Friday in Abuja.
Al’Amin specifically called on the Chief Executive Officer of NNPCL, Mallam Mele Kyari, to do all within his powers to rejuvenate the refinery and bring it up to global standard.
He said that having delivered the Port Harcourt refinery, coupled with the establishment of Dangote Refinery in Lagos, attention should be shifted to Kaduna refinery for easy spread of petroleum products.
“We are calling on Malam Mele Kyari to expedite action on Kaduna refinery so we can be at par with other regions in the country.
“We equally beg the NNPCL to do professional work in rehabilitating the old refinery and deliver a standard and functional petrochemical refinery and not a blending plant.
“Kyari should resist any temptation that could make him do something that can jeopardise his good image,” he said.
Al’Amin said that since the extinction of groundnut pyramid and textiles in Kano State as well as PAN in Kaduna State and with the Kaduna refinery getting moribund, a lot of youths had lost their jobs.
According to him, all their hopes in the north are tied to the legacy refinery, expressing the hope that God would use Kyari to deliver it well and on time.
He said that the group was solidly behind NNPCL in prayer and would be ready to celebrate the company if its expectations were met. (NAN)
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