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Investors Lend More Money to Government amid Rising Interest Rate in May

In the just concluded week, Central Bank of Nigeria (CBN) released its depository corporations survey which showed a 2.38% month-on-month (m-o-m) rise in Broad Money Supply (M3 money) to N40.01 trillion in May 2021. This resulted from a 1.11% increase in Net Domestic Assets (NDA) to N32.66 trillion and a 8.47% rise in Net Foreign Assets (NFA) to N7.36 trillion. On domestic asset creation, the increase in NDA was chiefly driven by a 1.46 m-o-m increase in Net Domestic Credit (NDC) to N44.71 trillion. Further breakdown of the NDC showed a 2.87% m-o-m increase in Credit to the Government to N12.51 trillion and a 0.93% rise in Credit to the Private sector to N32.19 trillion in the review period – faster growth in credit to government was partly due to the jump in stop rate as investors got relatively attractive returns on investment; albeit, it was negative real returns as inflation stood well above stop rate.

Evolution of M-Pesa from a person-to-person platform to a sophisticated fintech

Evolution of M-Pesa from a person-to-person platform to a sophisticated fintech
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Fiscal deficit contained at 3 5 percent in eight months

Daily Times April 29, 2021 Owing to the government’s efforts, the fiscal deficit during the first eight months (July-February) of the current fiscal year has been contained at 3.5 percent of the Gross Domestic Product (GDP). “Despite higher mark-up payments and COVID-related expenditures, the fiscal sector continues to perform better as a result of the government’s efforts to maintain fiscal discipline,” says Monthly Economic Update and Outlook for April 2021. According to the report the first eight months of the current fiscal year witnessed an increase of 9.2 percent in net federal revenue receipts to reach Rs.2188 billion as compared to Rs.2003 billion last year. The total expenditures grew by 1.3 percent to Rs.4132 billion during July-February, FY2021 as compared to Rs.4079 billion last year. “Thus the fiscal deficit has been contained to 3.5 percent of GDP during July-February, FY2021,” the report adds. On the other hand, the primary balance posted a surplus of R

Finance ministry hopes economic recovery despite third corona wave

Finance ministry hopes economic recovery despite third corona wave Top Story April 28, 2021 ISLAMABAD: Amid the third wave of COVID-19, the finance ministry has highlighted risks to different sectors, saying the economic recovery got hampered but Pakistan is grappling with the fresh wave. With timely appropriate measures taken by the government to tackle the third wave, risks have been mitigated thus better prospects of economic growth are visible, the ministry hoped. It also projected that all in all, inflation is expected to remain between 8.0-9.5 per cent next month. However, from the beginning of the next fiscal year, assuming the absence of any new supply shocks, favorable base effects may start to drive Y-o-Y inflation to lower levels. However, independent economists believe the monthly inflation will enter into a double-digit from next month.

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