• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Nigeria improved dollar supply helps firms settle overseas debt

1 year ago
in Business, Economy, Features, highlights, Home, home-news, latest News
1 min read
0 0
0
99
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Nigeria improved dollar supply helps firms settle overseas debt

– Nigerian companies are paying overdue dollar obligations after recent central bank reforms led to increased liquidity in the West African nation’s foreign exchange market.

MTN Nigeria Communications Plc, BUA Foods Plc and Cadbury Schweppes Overseas Ltd.’s Nigeria unit, some of the biggest firms in Africa’s most populous nation, have reported that they are now able to access dollars to meet their foreign currency obligations, a reversal of a situation where the scarcity of greenbacks left them unable to repatriate profits or pay foreign suppliers.

MTN Nigeria, the nation’s biggest mobile operator, “utilized the improved liquidity in the foreign exchange market” to reduce letters of credit obligations by 41.6% to $243.4 million from $416.6 million in December, in a bid to curb losses, Chief Financial Officer Modupe Kadiri said at investor conference call last week.

The Central Bank of Nigeria has since the beginning of this year introduced measures to improve liquidity, including raising its benchmark rate 600 basis points to attract capital inflows and and dumping the currency’s peg to allow the market to determine the naira’s exchange rate. This was after years of unorthodox currency management deterred investors and caused a scarcity of the greenback.

“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.”

Dollar liquidity jumped 90% to $160.8 million on Tuesday from a day earlier, Chapel Hill Denham said in emailed note on Wednesday.  The central bank is also selling dollars to money traders to boost distribution to retail users.

RelatedPosts

MTN Nigeria Now the Most Capitalized Stock in Nigeria

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

Still, the naira weakened 1.2% to 1,416 to the dollar Tuesday.

BUA Foods, the country’s biggest food and beverage company, took advantage of the improved dollar liquidity to prune debts by about 6% in the first quarter of this year, Managing Director Ayodele Abioye said. “Dollar availability will no doubt have positive impact going forward and we are optimistic of better performance for half-year 2024,” he said.

Similarly, Cadbury Nigeria has been able to access all its dollar needs from the official market since the beginning of the year, Finance Director Ogaga Ologe said 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 by phone.

While liquidity has improved, it has to be sustained for the next year to support the turnaround companies desire, according to Adebajo.

“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.

Tags: BUA FoodsCBNdollarmtnNigeria improved dollar supply helps firms settle overseas debtoverseas debt
No Result
View All Result

Highlights

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Tanzania Sink Burkina Faso to Delight Home Crowd In TotalEnergies CHAN 2024 Opener

Trending

Features

MTN Nigeria Now the Most Capitalized Stock in Nigeria

August 3, 2025

MTN Nigeria Now the Most Capitalized Stock in Nigeria MTN Nigeria has surged to become the most...

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

August 3, 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

August 3, 2025

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

US Companies Cut Investments in China to Record Lows, Here’s Why

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.