cbn Archives - Gifted Analysts

Navigating Tax and Regulatory Hurdles in Nigeria’s Fintech Sector

By Dolapo AterePosted on October 30, 2023Posted in EconomyTagged cbn, Crypto, Fintech, Nigeria, Payments, taxNo Comments

The rapid growth and innovation within the Nigerian Fintech industry have transformed the financial landscape and presented unique and complex tax challenges. As Fintech companies continue to disrupt traditional financial services and expand their operations, navigating the evolving taxation landscape has become critical. The growth and competition within the payment gateway industry, as exemplified by companies like Flutterwave, Paystack, Remita, Interswitch, and others, are truly remarkable to witness. As reported by the Central Bank of Nigeria (CBN), E-payment transactions in 2022 reached an impressive volume of 22 billion. At the same time, data from the Nigeria Inter-Bank Settlement Systems (NIBSS) shows that electronic transactions amounting to ₦38.9 trillion were conducted through the NIBSS Instant Payment platform (NIP) as of November 2022 (+50.2% vs November 2021: ₦25.9 trillion). This is a testament to the robust expansion of the Fintech sector in Nigeria, attracting policymakers in terms of supporting their growth and boosting tax collections from the sector. We will delve into the problems and obstacles at hand, while also exploring potential solutions for the way forward.

Questions and Answers Segment with the Founders of SCALE

By Sheriffdeen AdeotiPosted on March 23, 2021Posted in Business & FinanceTagged Angel investing, cbn, GiftedAnalysts, investment, Paystack, Robinhood, SCALE, SECNo Comments

Being the transcript of the questions and answers segment of the discussions with the founders of SCALE which was held at the GIFTEDANALYSTS WhatsApp group chat on 20th March 2021.

How to Analyze the Financial Statement of Banks

By Fawaz AyobamiPosted on March 16, 2021Posted in Business & FinanceTagged analysis, Balance sheet, Banks, cbn, Commercial Banks, Companies, Income statement1 Comment

Like any other companies, financial institutions prepare financial statements for regulatory purpose and assist their users in making economic decisions. However, banks’ business models are different from other companies. Thus they attract a unique regulatory focus.

The Unholy Union Between the Naira and Devaluation

By Fawaz AyobamiPosted on February 28, 2021Posted in EconomyTagged Balance of Payment, cbn, Devaluation, Exchange Rate, FDI, FPI, naira, Oil Price, Trade Balance4 Comments

In 2020, the Naira lost 25% and 27% of its value at the NAFEX and parallel exchanges, respectively. This quickly disrupted my plans, as I had planned to upskill and purchase some courses priced in dollars at the onset of the year. My disappointment prompted me to visit the CBN’s website in search of its policy stance per the Naira. The website says the apex bank’s exchange rate policy is managed floating – a market-friendly term adopted by developing countries who operate some form of pegged regime. I murmured, why did the Naira not appreciate, and why is it always under severe downward pressure?

A Beginner’s Guide to CBN’s Ways and Means to the Federal Government of Nigeria

By Abdulazeez KurangaPosted on January 26, 2021Posted in EconomyTagged Borrowing, cbn, Deficit, Expenditure, FGN, Fiscal Policy, Fiscal Revenue, Ways and Means2 Comments

CBN’s financing of the FGN deficits seems to be a structural one and not a one-off event. This is because historical data has shown that the CBN has been financing a huge part of the FGN deficits even when there was no economic downturn. For example, out of the total fiscal deficit of N3.64 trillion in 2018, the CBN financed 52.2%. In 2019, the total fiscal deficit was N4.23 trillion and the CBN financed 78.3% or N3.31 trillion of that amount. There was no downturn during those periods, hence it goes against economic theory for the CBN to be printing money to finance significant proportions of the FGN’s fiscal deficit.

Policy Trilemma and Interest Rate Behaviour in Nigeria

By Joshua OlorunsaiyePosted on November 18, 2020Posted in EconomyTagged cbn, Exchange Rate, Interest Rate, Monetary Policy TrilemmaNo Comments

Policy makers face trade-off in dealing with exchange rate management, monetary independence and concerns about capital mobility simultaneously. This
study empirically examines the effects of Nigeria’s trilemma policy path on
interest rate using data spanning from 1997:Q1 to 2017:Q3. It equally incorporates the role of external reserves in buffering these effects.

Implication of the Forex Ban on Food Items

By Sheriffdeen AdeotiPosted on September 19, 2020Posted in EconomyTagged BDC, cbn, Export, Food, forex, InflationNo Comments

With 84% of Nigeria’s export (as at Q2’2020) as oil products, we reiterate that Nigeria does not really have an import problem. Nigeria has an export problem and until that problem is solved, average Nigerians will always suffer higher commodity prices due to the demand management strategy of the CBN anytime external shocks occur in the oil market.

[Archive] From Recession to Growth: The Story Of Nigeria’s Recovery from the 2016 Economic Recession

By Abdulazeez KurangaPosted on August 30, 2020Posted in EconomyTagged cbn, Fiscal Policy, Foreign Exchange, Foreign Reserve, Growth, Monetary Policy, Nigeria, Recession, RecoveryNo Comments

Being a Paper presented by Godwin I. Emefiele, Governor, Central Bank of Nigeria at the Special Convocation of the University of Nigeria, Nsukka, on Friday, May 17, 2019 at the Princess Alexandra Auditorium, University of Nigeria, Nsukka, Enugu State

Towards a Unified Foreign Exchange Rate System in Nigeria

By Sheriffdeen AdeotiPosted on July 5, 2020Posted in EconomyTagged Bond, cbn, economics, External Reserve, forex, naira, PrintNo Comments

In a bid to increase access to Forex, the CBN created the I&E FX (Investors and Exporters Forex Window) in 2017 for importers in order to ease the pressure faced by the businessmen in the foreign exchange market. However, there still have been disparities among the CBN official rate, I&E rate (also known as NAFEX) and the parallel market rate.

Continuous Increase in Inflation Rate: What will the CBN Do?

By Sheriffdeen AdeotiPosted on June 18, 2020Posted in EconomyTagged cbn, COVID-19, Inflation, Interest Rate, MPR, NBSNo Comments

Nigeria’s Headline inflation increased by 12.4% (year-on-year) in May 2020, 6bps (0.06%) higher than the rate recorded in the previous month (12.34%), marking a ninth consecutive month of increase in inflation since August 2019 (11.02%) and a 25-month high of April 2018 (12.48%). The 12.4% inflation rate means that on the average, if a goods cost NGN100 in May 2019, 12 months ago, the consumer will actually pay NGN112.4 for the same commodity in May 2020.

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