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Nigeria’s Finance Minister Highlights $6.8 Billion Overdue Forward Payments As Cause oO Naira’s Continuous Decline

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Nigeria’s Finance Minister Highlights $6.8 Billion Overdue Forward Payments As Cause oO Naira’s Continuous Decline....KINDLY READ THE FULL STORY HERE▶

Nigeria’s Finance Minister, Adebayo Olawale Edun, has pinpointed the naira’s ongoing depreciation to approximately $6.8 billion in unsettled forward payments within the foreign exchange market, as reported by Bloomberg. He emphasizes that resolving this issue is essential for stabilizing the local currency.

Edun clarified that addressing these outstanding contracts could bolster the naira’s value and create opportunities for additional foreign exchange inflow. Over recent months, the Nigerian naira has experienced a consistent decline in its value.

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In the parallel currency exchange market, it approached the 1000 naira per US dollar threshold. This depreciation is primarily attributed to the inadequate supply of dollars by the central bank to this specific market.

Edun expressed, “The issue we have now is that the market is not liquid enough. We are committed to encouraging liquidity based on reforms that have been made at the moment, on the fiscal side and the monetary side. And together with the restoration of trust and confidence, we think the FX flows will return.” He made these comments during a recent interview in New York, where he accompanied President Bola Tinubu to the United Nations General Assembly.

Additionally, the Central Bank of Nigeria had to postpone its Monetary Policy Committee meeting due to the FX market crisis. Some speculate that the meeting delay is linked to leadership changes within the central bank. President Tinubu appointed Olayemi Cardoso as the new CBN governor, and several officials resigned, leaving decision-making in flux.

In recent weeks, the central bank has taken a relatively passive stance, resulting in a shortage of dollar supply through official channels. This scarcity has led to a rapid decline in the naira’s value, which dropped from around 900 naira per dollar at the beginning of September.

Due to the central bank’s insufficient dollar supply, individuals are compelled to seek foreign currency through unofficial means. Additionally, Nigeria, the largest African economy, is grappling with its highest inflation rate in over 18 years.

Economists predict that the central bank may raise interest rates, but the timing remains uncertain due to the postponement of its next meeting. In response to the delay and speculation, Finance Minister Wale Edun reassured the public that the situation would reverse once there is an increase in the supply of dollars in the market.

Edun stated, “The commitment is to maintain the existing reforms and improve them. Improving the FX market further so the gap narrows, looking at all options for boosting supply so the one-way bet of speculators that we are seeing at the moment is reversed.”

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Economy

WHO: Nearly 1 Billion People Living With Mental Health Conditions Worldwide

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GENEVA (AP) — Nearly one billion people around the world are living with a mental health condition, the World Health Organization said Saturday, warning that many still lack access to treatment and support.....KINDLY READ THE FULL STORY HERE▶

The U.N. health agency said depression and anxiety are among the most common disorders. It added that the COVID-19 pandemic and global conflicts have made mental health challenges worse.

WHO officials said about one in eight people now face some form of mental illness. Despite the rising need, funding for mental health services remains low in many countries.

“Every person, in every community, deserves the right to mental health care,” said WHO Director-General Tedros Adhanom Ghebreyesus. “This is not a luxury. It is essential for well-being and development.”

The organization urged governments to expand services, train more mental health workers and reduce stigma.

Experts say untreated conditions often lead to poverty, unemployment and poor physical health. The WHO stressed that investment in mental health care can also boost economic growth and improve education outcomes.

The agency called for stronger global action ahead of World Mental Health Day next month, saying the issue affects families, workplaces and entire societies.

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Economy

Expert Warns of Skills Gap Between Schools and Job Market

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LAGOS, Nigeria (AP) — Many graduates struggle to find work because schools are not teaching the skills employers demand, a curriculum innovation expert said Saturday.....KINDLY READ THE FULL STORY HERE▶

Tope Salau, an education consultant, warned that there is a “mismatch between the skills that are needed in the marketplace and the skills that are being taught.”

She said universities and training centers often focus on theory while businesses need practical, hands-on abilities. As a result, young people leave school without the tools to succeed in the workforce.

The problem is not limited to Nigeria. The International Labour Organization has reported that skill gaps affect both developing and developed economies, slowing growth and innovation.

Experts have urged schools to partner with industries to design programs that match market needs. They also call for investment in vocational training, digital skills, and entrepreneurship.

“Students are willing to learn, but the system must give them the right foundation,” Salau said.

Education analysts say bridging the gap will require policy reforms, stronger industry-academia collaboration, and modern teaching methods. Without change, the unemployment crisis among graduates is likely to continue.

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Economy

Nigeria Inflation Drops to 20.12% in August but Prices Remain High

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Nigeria inflation rate fell to 20.12% in August 2025, marking the fifth month in a row that the country has seen a decline in inflation, according to new data from the National Bureau of Statistics (NBS).....KINDLY READ THE FULL STORY HERE▶

The latest report also showed that food inflation, which directly affects the daily lives of millions of Nigerians, dropped to 21.87% from 22.74% in July. This decline was welcomed as a sign of progress, but many households say the relief has not been felt in local markets.

Why Inflation Is Dropping

Analysts link the downward trend to a more stable naira, improved supply conditions, and ongoing monetary policies by the Central Bank of Nigeria (CBN). A stronger naira helps reduce the cost of imported goods, while tighter financial policies aim to control money supply in the economy.

Economist Tunde Adebayo explained:

“The numbers show that inflation is cooling, but Nigerians are still struggling. What matters to people is the price they pay for rice, bread, and transport. Until those prices come down, the average citizen won’t feel the impact.”

Food Inflation Still a Major Concern

Even though food inflation declined slightly, it remains above 21%, which is high compared to global standards. The cost of rice, garri, beans, and vegetables continues to put pressure on household budgets.

A market survey in Lagos revealed that a 50kg bag of rice still sells for between ₦55,000 and ₦60,000, only a little lower than prices recorded earlier in the year. Similarly, bread prices have not dropped despite the fall in flour import costs.

For families earning low wages, these high prices mean cutting back on meals or choosing cheaper substitutes.

Mixed Reactions From Nigerians

While government officials celebrate the inflation numbers as a positive sign, many Nigerians disagree. On social media, users argued that the figures do not reflect the reality on the ground.

One resident in Abuja said:

“They keep saying inflation is falling, but when I go to the market, everything is still expensive. Tomatoes, onions, and oil are not cheaper.”

This frustration shows a gap between official statistics and lived experiences.

Impact on Businesses and Jobs

Businesses are also watching the inflation trend closely. For small businesses, especially in food and retail, the high cost of goods continues to affect profits. Many shop owners report that customers are buying less, which slows sales and weakens growth.

On the other hand, some manufacturers say the recent currency stability has reduced import costs for raw materials. If this trend continues, it could support job creation and production in the coming months.

Government and CBN’s Role

The government has promised to continue policies aimed at bringing inflation under control. The Central Bank of Nigeria is expected to maintain tight monetary measures while supporting programs that increase food production and stabilize supply chains.

Economic experts suggest that investments in agriculture and local manufacturing will be key to lowering food inflation further. If farmers can produce more locally, reliance on imports will drop, reducing the pressure on foreign exchange and consumer prices.

What Nigerians Can Expect Next

Although the inflation rate has dropped for five months straight, it is still above 20%, which is very high compared to other African economies like Ghana and Kenya. Experts warn that without consistent policy actions, inflation could rise again.

For now, Nigerians will likely continue to feel the pressure of high food and transport costs, even if official statistics show improvement.

The fall in Nigeria’s inflation rate to 20.12% in August is a positive step, but for many citizens, the real impact is yet to be seen. Prices in markets remain high, and families are still struggling with daily expenses.

Until the government addresses food supply, production costs, and wages, the numbers on paper will not match the economic reality in households across Nigeria.

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