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Nigerians spend N312.27bn on cooking gas, reveals national survey

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Nigeria cooking gas expenditure report 2024

A national survey shows that Nigerians in nine states spend N312.27bn on cooking gas, highlighting evolving energy consumption patterns.

 

 

Nigerians in nine states have spent a staggering N312.27 billion on Liquefied Petroleum Gas (LPG), commonly known as cooking gas, according to a new report released by the National Bureau of Statistics (NBS) on Wednesday.

The report, titled the **2024 Nigeria Residential Energy Demand-Side Survey**, sheds light on the country’s changing energy consumption patterns and the reliance on various sources for cooking and heating.

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Also read: Nigeria adopts 88 international standards for compressed natural gas to ensure safety, Quality

 

The survey encompassed data from 7,706 households across nine states, offering insights into the usage of LPG, fuelwood, electricity, and other energy sources.

The states included in the survey were Akwa Ibom, Bauchi, Ekiti, Enugu, Kano, Kwara, Oyo, Plateau, and Sokoto, ensuring a broad representation across Nigeria’s six geopolitical zones.

Conducted over a 17-day period from April 19 to May 5, 2024, the survey utilised a systematic sampling method to collect data on energy consumption and expenditures over the 30 days preceding the survey date.

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The findings indicate that 19.4 per cent of households reported using LPG during this period, with the average household expenditure on LPG pegged at N10,239.7.

Sokoto State emerged as the highest spender, with an average monthly expenditure of N12,439.3, followed closely by Enugu at N11,852.2.

In contrast, Ekiti State reported the lowest average expenditure at N8,213.5. The report highlighted, “The average monthly expenditure on LPG across the nine states in the past 30 days prior to the survey day was N10,239.7.”

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Despite the growing popularity of LPG, the survey revealed that traditional fuels like fuelwood and charcoal remain widely used.

Fuelwood is particularly prevalent, with 67.8 per cent of surveyed households reporting its usage for domestic, agricultural, and commercial purposes.

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The total annual spending on fuelwood is estimated at N608.72 billion, with an average household expenditure of N117,347 per year.

Charcoal remains significant as well, with 22 per cent of households using it primarily for cooking. However, charcoal production is limited, with only 0.3 per cent of households involved in its production, mainly concentrated in states like Kwara and Ekiti.

Electricity access was another crucial aspect of the report. Approximately 58.2 per cent of households are connected to the national grid, with Ekiti leading at 79.7 per cent grid access.

However, a substantial 85.2 per cent of these households are subjected to estimated billing, with only 14.8 per cent utilising pre-paid meters.

The report also notes the increasing role of solar power systems, with 4.8 per cent of households reporting access to solar home systems or mini-grids.

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Additionally, 4.8 per cent of households use diesel or petrol generators, purchasing an average of 7.38 litres of fuel per month, primarily from filling stations, reflecting ongoing reliance on petrol-powered generators due to electricity supply challenges.

During a press briefing on Wednesday, the Statistician General of the Federation, Prince Adeyemi Adeniran, launched the 2024 Nigeria Residential Energy Demand-Side Survey.

He highlighted the significance of reliable and affordable energy as a fundamental human right and a cornerstone of economic growth.

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Adeniran emphasised that the survey offers critical insights for policymakers and operators in the energy sector as Nigeria addresses rising energy demand, access challenges, and affordability issues.

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Massive fuel shipment and incoming vessels with goods arrive at Lagos Ports

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Nigerian Ports Authority vessels Lagos ports

The Nigerian Ports Authority confirms the arrival of vessels with 40 million litres of fuel at Lagos ports, alongside ships carrying various goods.

 

 

The Nigerian Ports Authority (NPA) confirmed the arrival of two vessels carrying an estimated 40,766,400 litres of Premium Motor Spirit (PMS), commonly known as petrol, at Tincan Island Ports in Lagos on Friday.

This shipment is expected to bolster local petrol supplies and potentially impact fuel distribution across the region.

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Also read: Dangote advocates ending crude oil mortgaging for Nigeria’s refining future

 

In its daily report, the NPA also noted that an additional ten vessels, each loaded with various commodities, are scheduled to arrive at the ports between Friday, 1 November 2024, and 8 November 2024.

These vessels will carry a range of goods, including vehicles, diesel, containers, and bulk wheat.

Three of the incoming vessels will specifically deliver vehicles, with two ships carrying a total of 600 used vehicles and one vessel delivering 600 new vehicles.

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The remaining five vessels will bring in consignments such as AGO (diesel), assorted containers, and bulk wheat, reflecting the diverse import activity at Nigeria’s major port facilities.

The NPA has designated multiple terminals across Lagos for the berthing of these vessels, including the Kirikiri Lighter Terminal, Five Star Logistics, Ports & Terminal Multipurpose Limited, Josepdam Ports Service Limited, and the Tincan Island Container Terminal.

This week’s shipments follow recent updates regarding fuel pricing in Nigeria, where marketers plan to offer petrol below N1,028 per litre, closely monitoring local production costs and availability.

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Amid inflation and ongoing debates about workers’ minimum wage, the delivery of these essential goods will likely be of considerable interest to both businesses and consumers.

The Nigerian Ports Authority’s coordination ensures the timely arrival and efficient processing of critical imports, supporting the nation’s economy and addressing the demand for essential commodities.

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Woodhall capital partners with Afreximbank to launch $25 million SME export boost in Nigeria

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Woodhall Capital Afreximbank SME support

Woodhall Capital and Afreximbank unveil a $25M facility to support Nigerian SMEs, marking a significant step toward bridging export barriers in Africa.

 

 

In a pivotal move aimed at empowering Nigerian small and medium enterprises (SMEs) for export, Woodhall Capital, a leading financial services firm, has partnered with the African Export–Import Bank (Afreximbank) to introduce a $25 million loan facility.

This initiative, formalised at the first-ever Afreximbank SME Development Workshop and Stakeholder Engagement Programme in Lagos, signifies a vital step in enhancing market access for SMEs in Africa.

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Also read: CBN partners with Microfinance Banks to boost MSMEs growth

 

Held at the renowned Zinnia Hall, Eko Hotels & Suites, Lagos, the workshop, themed “Nurturing African SMEs: Bridging the Barriers to Export,” saw over 400 attendees, including industry leaders, financial institutions, and government officials.

In opening remarks, Kanayo Awani, Executive Vice President of Intra-African Trade & Export Development (IAED) at Afreximbank, underscored the importance of the event in supporting Nigerian SMEs to embrace trade and drive continental development.

“Collaborating with Woodhall Capital enables us to build up SMEs, which are the backbone of Africa’s economy. Beyond financing, this partnership aims to identify financial institutions capable of fostering SME growth,” Awani noted.

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With SMEs constituting 90% of business activity in Africa, Afreximbank has observed that financial access remains a major challenge. Awani highlighted that around 60% of SMEs struggle to obtain necessary financing, limiting their potential in both local and international markets.

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By providing affordable and accessible funding, this partnership intends to create lasting growth for African SMEs, she added.

In his remarks, Nigeria’s Minister of State for Finance, Dr. Doris Uzoka-Anite, represented by Alhaji Shekarau Umar, Executive Director of MSMEs at the Bank of Industry, emphasised the role of Nigerian SMEs in regional development.

“Nigeria’s vast SME population, exceeding that of 39 other African nations combined, demonstrates the strategic choice of Nigeria as the workshop’s host. Afreximbank’s role in facilitating SME access to cross-border trade is invaluable,” Dr. Uzoka-Anite remarked.

Uzoka-Anite also called on attendees to focus beyond financial barriers and address critical issues like market access and capacity-building. “Funds provided to SMEs are impactful only when paired with training that enables long-term success,” she stated.

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A wide array of experts further contributed to the discussions, including Oluranti Doherty, Afreximbank’s Managing Director of Export Development; Dr. Olayemi Cardoso, Nigeria’s apex bank governor, represented by Dr. Blaise Ijebor, Director of Risk Management at the Central Bank of Nigeria; and Ody Akhanoba, Head of SME Development at Afreximbank.

Also participating were Will Stevens, the US Consul General, represented by Daniele Jean-Pierre, Managing Director of Trade at Prosper Africa, and Fola Olowu, founder of Oriki Group, who discussed the African Growth and Opportunity Act (AGOA) and its benefits for SMEs.

The workshop delivered a range of presentations aimed at equipping Nigerian SMEs with essential tools for scaling up export operations. Panel discussions focused on creating a supportive ecosystem for SME growth and improving finance accessibility for African SMEs, with valuable insights from key industry leaders.

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Speaking on Woodhall Capital’s journey, founder Mojisola Hunponu-Wusu explained how the firm evolved from a local entity into a global institution with Afreximbank’s support.

“Afreximbank’s commitment allowed our small company to scale globally, underscoring the importance of guidance and training for any business,” she said. Highlighting the potential for African SMEs, Hunponu-Wusu encouraged participants to pursue success with a growth-oriented mindset.

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This collaboration between Woodhall Capital and Afreximbank symbolises a promising path forward for African SMEs, with the potential to transform the region’s economic landscape by bridging the financing and export barriers that have hindered SME growth across Africa.

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World Bank urges CBN to refrain from forex auctions and embrace flexibility

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CBN foreign exchange policy

The World Bank has advised the Central Bank of Nigeria to halt forex auctions and adopt a transparent framework for foreign exchange interventions to stabilise the naira.

 

 

The Central Bank of Nigeria (CBN) has been urged by the World Bank to cease its intervention in the foreign exchange (FX) market through auctions and instead adopt a flexible exchange rate system.

This recommendation was part of the Nigeria Development Update, which outlines strategies to stabilise the naira against foreign currencies.

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Also read: FG gets over $751m World Bank loan

 

On August 26, 2024, the CBN conducted a significant auction, selling $876.26 million to end users via a retail Dutch auction.

This marked a shift from the bank’s traditional sales to Bureau De Change operators and was one of the most substantial FX interventions under Governor Yemi Cardoso’s leadership.

The CBN stated that the auction aimed to enhance liquidity in the FX market, alleviate demand pressure, and support price discovery.

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The sales report indicated that 3,347 firms accessed dollars at a cut-off rate of N1,495 per dollar through 26 banks. However, the World Bank’s report highlighted that allowing market participants to trade FX with greater flexibility would deepen the FX market.

 

The report outlined several recommendations for the CBN, including:

1. Maintain a Unified Exchange Rate: The CBN should continue to pursue a unified and market-reflective exchange rate while deepening the official FX market.

2. Facilitate Formal Remittance Inflows: The bank should work towards enhancing formal remittance inflows and allow international oil companies to concentrate their FX sales in the official market.

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3. Restore Bureaux de Change Access: Efforts should be made to restore intermediated market access to bureaux de change and refrain from ad-hoc FX auctions.

4. Build Foreign Reserves: The CBN should strategically build foreign reserves to accurately determine the fair value of the naira against foreign currencies.

5. Adopt a Transparent Framework: There is a call for a comprehensive, systematic, and transparent framework for CBN FX interventions to anchor exchange rate expectations to fundamentals rather than perceived targeted rates.

The World Bank emphasised that maintaining a single, market-reflective exchange rate is vital for increasing fiscal revenues, attracting investment, and creating conditions for inclusive growth.

In related news, during the recent IMF/World Bank annual meeting in Washington D.C., Nigeria’s Finance Minister Wale Edun noted that the government has not always adhered to the policy recommendations provided by international agencies.

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He cited an example of oversubscribed domestic bonds, indicating that while advice from these institutions is valuable, it is not always mandatory to follow.

Additionally, the World Bank’s report revealed a concerning rise in non-performing loans (NPLs) in Nigerian banks, which reached 5.1% in the first quarter of 2024, slightly above the prudential benchmark of 5.0%.

This increase has been attributed to high inflation, depreciation of the naira, and a decline in the banking system’s capital buffers, which fell to 11.1% in Q1 2024 from 14.2% in Q1 2023.

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