Naira Depreciation: IOC Pension Managers Increase Offshore Investments
Against the backdrop of currency rate volatility and Naira depreciation, Closed Pension Fund Administrators (CPFAs) connected with international oil corporations reportedly invest more of their pension fund assets in foreign money market instruments for safety.
The National Pension Commission, PenCom, reported in its unaudited report on the pension funds industry portfolio for May 31, 2024, that the CPFAs invested N107.1 billion, up 10.2 percent from N97.2 billion in April 2024. According to the PenCom data, the CPFAs grew their stake in foreign ordinary shares by 9.3% to N268.7 billion in May, up from N245.9 billion in April. Meanwhile, overall pension fund assets climbed by 2.02% to N20.2 trillion in May 2024, from N19.8 trillion in April.
High medicine costs to continue as local production fails
The country’s high medicine prices will endure, while domestic manufacture of the products is on the verge of collapse due to government policy contradictions.
Though the Nigerian pharmaceutical market has over 200 manufacturing and packaging companies comprised of three dominant segments: readily available over-the-counter drugs (43.1%), affordable generics (38.9%), and expensive branded patented drugs (12%), the drug market in the country has been completely dominated by imported drugs, which are extremely expensive for the average Nigerian.
As a result, drug prices in Nigeria have risen dramatically, with imported drug prices dominated by dollars. According to Pharma West Africa, the industry is the second largest in Africa after South Africa, with an estimated market size of approximately ¦6.1 trillion (according to Access Bank data). According to Goldstein Research, the local pharmaceutical market will grow 9.1 per cent compound annual growth rate (CAGR) between 2017 and 2030.
According to Access Bank Plc, projections show a value of more than N3.26 trillion by 2025, driven by an 11.5% CAGR. Similarly, McKinsey & Company expects the market to reach N5.5 trillion by 2026. These predictions demonstrate the sector’s enormous potential in Nigeria.
Beneath this gleaming sheen, however, lurks a dark side to the great credentials: stagnation. Local medicine manufacturers are struggling to keep up with the increasing expansion. Many local pharmacies are filled with imported drugs, creating a dilemma. While the market grows, domestic manufacturing cannot keep up with capacity utilisation below 50%.
Currently, Nigeria produces only about 25% of its pharmaceutical needs. Worse, despite a substantial domestic manufacturing sector, a whopping 70% of medications are imported (mostly from China and India), either legitimately or illegally. Estimates show that just 30% of Nigerians have access to authentic drugs.
Angry youths burn INEC offices in Benue amid protests against bandit attacks
The Independent National Electoral Commission (INEC) office in Sankara, the headquarters of Ukum Local Government Area, Benue State, has been destroyed by some youths of the community.
The incident occurred on Wednesday during protests against escalating bandit attacks in the region, which targeted several government facilities, including INEC. Fortunately, no lives were lost in the attack, as confirmed by Sam Olumekun, National Commissioner & Chairman of the Information and Voter Education Committee, who assured the public that security agencies had been promptly informed and had deployed personnel to manage the situation.
Olumekun claimed that the crime “occurred at 2 pm today, Wednesday 3rd July 2024, when the youths in the area said to be protesting against the activities of bandits attacked facilities of government agencies, including INEC”.
N’Assembly gives FG a dismal mark on budget implementation
The Senate has given the executive a low score for implementing the capital component of the 2024 budget, stating that the government must work with Ministries, Departments, and Agencies of the Federal Government to implement the budget.
On Wednesday, the Senate also encouraged the Federal Government to step up efforts to fund the capital components of the country’s three national budgets, which are now in effect.
Senator Solomon Adeola, Chairman of the Senate Committee on Appropriation, assigned the assignment when the Minister of Finance, Wale Edun, and the Accountant General of the Federation, Oluwatoyin Madein, testified before the panel about budget performance.
Adeola bemoaned the inadequate funding of the capital components of the budgets and encouraged the Coordinating Minister for the Economy to enhance it.
Nigeria collaborates with the United Kingdom, Germany, and other countries to promote green industrial development
Nigeria is collaborating with the United Kingdom, Germany, and the World Economic Forum to realise President Bola Tinubu’s vision for the country’s green industrial development.
Ajuri Ngelale, the Special Presidential Envoy on Climate Action, told the News Agency of Nigeria on Wednesday in Abuja that the meeting with the leadership of the UK-Nigeria Infrastructure Advisory Facility focused on enabling a private sector-led, public sector-enabled programme. Ngelale, who is also the President’s Special Adviser on Media and Publicity, stated, “We (also) conducted a virtual discussion with Ms Gim Huay, Managing Director of the World Economic Forum’s (WEF) Centre for Nature and Climate.
“We agreed on specific next actions that will increase collaboration with international investors and DFIs following our green industrial roadmap. On Wednesday evening, we hosted an excellent session with a delegation from the German Embassy, led by Ambassador Johannes Lehne, the Head of Climate Negotiations.
“Specific steps towards deepening collaboration on hydrogen and wind energy development were agreed upon with a follow-up next week,” according to him.
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Written By: Ifeanyi Ogbu, (Obinwannem News correspondent Enugwu State)
Date: July 04, 2024
Ubochi Afo Ani
Published by Ugwu Okechukwu (CEO Obinwannem Foundation)
