News & Stories

Highest Nigeria Inflation 16.5% in June

Nigerian inflation accelerated to the highest rate in almost 11 years in June, complicating the task of the central bank in an economy which is at risk of contracting this year.

The inflation rate in Africa’s largest economy increased to 16.5 percent from 15.6 in May, the Abuja-based National Bureau of Statistics said in an e-mailed statement on Monday. That’s the highest rate since October 2005, according to data on the Central Bank of Nigeria’s website. Prices rose 1.7 percent in the month. The median of seven economist estimates compiled by Bloomberg was for inflation to quicken to 16.2 percent.

Nigeria imports at least 70 percent of its refined fuel, despite pumping 1.6 million barrels of crude a day in June according to the International Energy Agency, and faced fuel shortages as retailers struggled to get foreign currency to buy product during a 15-month naira peg that was removed last month. The currency’s official exchange rate weakened to more than 280 per dollar, compared with the fixed rate of 197-199, and the naira trades at around 360 on the black market, increasing prices for consumers.

“Inflation will continue rising because the driving factors are still there, but there should be a slowdown in the subsequent months,” Babajide Solanke, an analyst at Lagos-based FSDH Merchant Bank Ltd., said by phone. “Inflation may not necessarily cause monetary policymakers to increase rates, because that will hurt growth. They may choose to use other monetary instruments to tighten liquidity.”

The naira weakened 2.3 percent to 291 per dollar by 3:54 p.m in Lagos.

The official exchange rate needs to move closer to that on the black market in order to boost investor confidence, Olusegun Sotola, head of research at Lagos-based Initiative for Public Policy Analysis, said by phone. That would bring money into Nigeria and reduce the effect of inflation, he said.

The average price for a liter (0.26 gallon) of gasoline was 148.5 naira ($0.52) in June, 1 percent less than in May, according to a separate report from the statistics bureau. The June gasoline price was 32 percent higher than a year earlier.

Food prices rose 15.3 percent in June from a year earlier, compared with 14.9 percent in May. The highest increases were in the costs of fish and meat, fruit and vegetables and bread and cereals, the statistics office said.

“When inflation rises, nominal interest rates have to rise,” Magnus Kpakol, Director at Abuja-based consultancy Economic and Business Strategies, said by phone. “It’s a bad time though to be increasing interest rates when the economy is weak.”

 

The International Monetary Fund said this month Nigeria’s economy could contract for the first time in more than two decades this year as a fall in oil revenue and electricity shortages weigh on output. Gross domestic product contracted by 0.4 percent in the three months through March as the naira peg and restrictions on trading foreign currency led to a shortage of dollars needed to import fuel and materials for manufacturers.

The Central Bank of Nigeria, which kept its benchmark rate at 12 percent in May, will announce its next policy decision on July 26. Six of nine analysts in a Bloomberg survey forecast borrowing costs will stay unchanged.

July 20, 2016

Write for us

Hello! If you’re reading this, you have probably heard about us or our services and you thin you can be a positive influence in this community.

If you’re thinking of a blog post for this site, please find the rquirements listed below. We highly encourage you to use it precisely as a checklist — literally, go through the points and ensure your draft satisfies all of these criteria.

When posts don’t hit these points, we usually have to decline them. At a minimum, they will be postponed them for several weeks at a time.

That said, here’s how to stay at the top of the pile!

 

The Basics

Starting with open-ended questions like these should give you a good indication of how experienced the freelance blogger is — if they can pointedly answer these questions, they are experienced enough to know what’s important to mention in their response. If you’re met with vague or generic answers, or they don’t ask intelligent follow-up questions that help narrow down their focus, they might be a generalist that isn’t specialized in your industry or blog writing, specifically. Or worse, they’re simply unprepared for your interview — not the person you’d like responsible for diligently creating content.

What types of content do you create?

Sometimes you’ll encounter a freelancer who writes a great whitepaper, but when faced with developing a compelling blog post, he or she can’t quite pull it off. Get your candidate talking about the types of content they write — blog posts, press releases, ebooks, printed books, business proposals, manuals, etc. A good freelance writer is capable of writing more than one content type, but listen for which assets they emphasize most, as some offer more transferable writing skills than others. Former journalists, for example, are more likely to make great bloggers than technical writers.

About what industries do you write?

Freelance writers can usually write about more than one industry, especially those that make their living off freelance writing full-time (more on that later). But if on their resume or during your interview, a candidate claims they are adept at writing about every industry, it’s more likely they are spreading themselves too thin. They are probably okayat writing about a lot, but not great at writing about anything. A good freelancer knows his or her limitations. If you’re interviewing someone who claims such a thing, ask for writing samples around your industry and those related to yours. For example, those in the marketing industry would also ask to see samples of writing about technology and business to see if their claims really hold up.

Describe the tones in which you’re comfortable writing.

Great freelance writers can adapt their tone based on the company for which they’re writing. If you’ve written a content style guide, you already know the exact tone for which you’re striving. See if they mention words that match those you’ve placed in your style guide — objective, humorous, balanced, lighthearted, etc. If your candidate is able to do this, they are likely naturals at adapting tone on a client-by-client basis. It also means they’ve probably read your blog content and have the ability to distill style and tone on their own. That’s a skill that is honed with experience, and you can be confident that they can tweak copy to make it sound appropriate for the business at hand.

 

THE REQUIRED FORMAT IS AS FOLLOWS

  • Include an image.
  • Visually break up any long blocks of text.
  • Use formatting devices like headers, bullets, check marks, and numbered lists.
  • Include a call-to-action in every post.
  • Break up content into sections or steps.

 

Why Should You Write For Us?

we accept guest authors who are in freelancing community to share their ideas and opinions and experiences to others. In turn you can multiply the visitors for your site/blog through back-links.

How to Get Started?

It’s simple. Send a mail to press@wok.com.ng We will review your article and if it matches our guest article approval criteria, you will be intimated via mail.

 

July 5, 2016

User Manual for Freelancers

We welcome all independent professionals and agencies to join the Wok Economy, whether you are a web designer from Serbia, or a writer from Lagos or architect from Calabar, depending on your business needs, we invite you to register and work.

It has now become common knowledge that a huge number of Nigerians are unemployed and the others that are employed are under payed. Those who depend on monthly pay sometimes don’t get paid for months. So it’s important to have a side business that can give you some passive income, thats where freelancing comes in.

Working on wok can be fulfilling because you set the tone, you have absolute control of how much you want to work and how much you would like to earn. You control how you get the job done, and your clients will rely on your expertise to get started. Before you start working, consider setting up a kickoff meeting or writing a message to your client.

It’s quite common to have users register on a website and abandon their accounts. Filling out as many fields as possible to create a profile that highlights your skills, elaborates on your experience and indicates your desired fees for your task or wok.

Registered freelancers can now download the free guide here 

download-button-blue-300x133

May 1, 2016

Wok Nigeria Officially Open to the Public

LAUNCH OF NIGERIA’S BEST MICRO-JOBS WEBSITE

A platform for Nigerians to work from home or office.

March 7, 2016– The slowing down of the Nigerian economy and massive job cuts has caused us as Nigerians to have a rethink. What if we used the skills we picked up as either a routine or as a hobby and turn it to a part time job? We have created this website Wok.com.ng where a user can sell his services from 1,000 Naira upwards.

Wok.com.ng is a safe and secure platform where every Nigerian that own as computer or cellphone with internet connection could provide sundry services like designing a logo and selling it to another customer miles away, an accountant who is skilled at Microsoft excel can help to format another person’s excel sheet for a small fee, an artist can display his art and let new customers send him photos to draw and many more. All these and many more can be done through our website.

Our mission is to empower people who have valid technical skills but have no white collar jobs to support themselves or who have white collar jobs but need to do some extra jobs to supplement their income.

 

Economic Background

As at October 2015 Nigeria’s unemployment rate stood at 9.9%, and is forecasted to reach 20% at 2020 (National Bureau of Statistics). A country of about 178.52 million people (2014), with 102 million economically active people, out of these, 75.9% are gainfully employed, 14.2% are underemployed and 9.9% are unemployed (Africa Check Statistics).

It’s however important to note here that even the employed population are quite underpaid and therefore would want to supplement their incomes.

It’s important for us as Nigerians to look inwards, harvest our individual skills and turn it to a source of sustainable income.

 

Building Trust and confidence

Nigeria is a nation filled with smart and indeed talented people, and we recognize that it’s important to be true to the service we offer.

Firstly, we made it a priority to use the best and strongest data encryption technology in the industry to protect user data, we opted to use the industry standard secure data transfer protocol HTTPS which is known to display a green security padlock on the address bar.

Secondly, we have made available multiple feedback mechanisms between the buyers, sellers and website engineers which include jobs flagging capabilities, online chat function and a support ticketing system which allows for notification about complaints, fraud and other online vices.

Thirdly, there is a trust rating system whereby sellers can be filters based on their customer rating of previous jobs. This boosts the buyer’s confidence to ensure that he is dealing with a trustworthy seller.

Value Proposition

We have built a platform that will enhance your productivity by helping you reach out to people who need your service. Be you a graphic designer, web developer, programmer, artist, music producer, architect, teacher, motivational speaker, life coach, etc. You can have people pay for your service from 1,000 Naira to up to 100,000 Naira and more.

 

“It has been a pleasure to support wok.com.ng as one of our newest merchants. They have a very interesting business that will help many people to get a new way to monetize their skills. “ – Louis Rodriges ( V.P. Development, SimplePay Nigeria).

We are not just building a website, we are building a new economy, “The Wok Economy”, where people can depend more on the services they can provide, and not entirely on what companies or the government can do for them to improve their livelihood.

 

“This is a great initiative by your team” – Iwobe S. Kingsley (Customer).

 

Wok is a word we coined from the Nigerian Pidgin English which means Work. Wok can be used as a noun e.g. “I no sale any wok today” or as a verb e.g. “oga give me wok, I go wok am for you”. Let’s get to wok.

March 8, 2016

Concerns grow as Naira slumps further to N385/$

The naira, yesterday, depreciated further to N385 per dollar in the parallel market as demand for foreign exchange intensified.

This implies the naira has depreciated by N60 against the dollar this week in the parallel market, when compared with the closing exchange rate of N325 per dollar last Friday. The currency, however, remained stable at the official interbank foreign exchange market as the interbank rate closed N199.34, yesterday.

naira_nigeriaThus, the gap between the interbank and parallel market rates widened to N185.66 per dollar from N127.53 last Friday. Vanguard investigation also reveals that the naira depreciated against the British pounds to N505 per pounds in the parallel market, yesterday, implying N65 depreciation when compared with the closing rate of N440 last Friday. Investigations revealed that the sharp depreciation of the naira in the parallel market this week is  driven by increasing demand by importers sourcing dollars to pay for imports from China. According to a BDC operator, who spoke on condition of anonymity, “you know China had been on its one month annual holidays.

But they resumed work on Monday, and people have to complete payment for goods ordered before the holidays. “They had made 30 per cent down payment to order the goods and they now have to pay the 70 per cent balance otherwise they will lose the 30 per cent. That is why they are desperate and ready to buy dollars at any rate. Meanwhile, supply is scarce and those who have dollars are not willing to sell because they might also need the currency soon.” The naira has been on steady decline since Tuesday, January 12, 2016, when the Central Bank of Nigeria (CBN) stopped weekly dollar sale to BDCs. Prior to this action, the naira traded at N265 per dollar in the parallel market. Consequently, the naira has depreciated by N80 in the parallel market since the CBN took the action. The steady depreciation was also aggravated by inability of the CBN to meet foreign exchange demand. Vanguard investigations reveal that the parallel market is being bedevilled with demand for foreign exchange from importers of the 41 items excluded from the official market by CBN last year as well as importers of items not excluded from the official market.

Read more at: http://www.vanguardngr.com

February 18, 2016

Nigeria Unemployment Rate 2016

UnemploymentUnemployment Rate in Nigeria increased to 9.90 percent in the third quarter of 2015 from 8.20 percent in the second quarter of 2015. Unemployment Rate in Nigeria averaged 11.45 percent from 2006 until 2015, reaching an all time high of 23.90 percent in the fourth quarter of 2011 and a record low of 5.30 percent in the fourth quarter of 2006. The rate in Nigeria is reported by the National Bureau of Statistics, Nigeria.

unemployment

Actual Previous Highest Lowest Dates Unit Frequency
9.90 8.20 23.90 5.30 2006 – 2015 percent Quarterly

In Nigeria, the rate of lack of jobs measures the number of people actively looking for a job as a percentage of the labour force. This page provides the latest reported value for – Nigeria Unemployment Rate – plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Nigeria Unemployment Rate – actual data, historical chart and calendar of releases – was last updated on February of 2016.

February 15, 2016

Rising Nigeria Inflation and Defense of the Naira

Inflation pressures are rising in Nigeria despite the central bank pegging the currency for almost a year in the face of plunging oil prices.

Governor Godwin Emefiele has opposed devaluing the naira, imposing restrictions on imports and curbing foreign-currency supply instead to cope with a more than 45 percent slump in oil prices since the beginning of last year. Rather than protecting consumers — the justification used by President Muhammadu Buhari in rejecting calls for a weaker currency — the policy threatens to stoke inflation as it boosts import costs and pushes the naira to a record low on the black market.

The central bank’s correlation between the naira and inflation “has already broken down,” said Nema Ramkhelawan-Bhana, an economist at Rand Merchant Bank in Johannesburg. “Inflation will average in double digits this year,” above the central bank’s target of 6 percent to 9 percent, she said.

Rising food costs, which make up about half of the consumer price index, have pushed inflation to 9.6 percent in January, the same rate as the previous month and the highest level in three years. Calls to Central Bank of Nigeria spokesman Ibrahim Mu’azu’s mobile and office phones didn’t connect and he didn’t immediately respond to a text message seeking comment.

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Ten of the 12 categories of consumer prices surveyed by Standard Chartered Plc in its Consumer Price Tracker showed increases in January from the previous month, according to Razia Khan, chief Africa economist at the London-based lender. That shows “prices are rising, despite attempts to keep the official Nigerian naira exchange rate unchanged,” she said in an e-mailed note to clients.

The central bank in Africa’s largest economy has effectively pegged the naira at 197-199 per dollar since March by restricting foreign-currency supply, hurting businesses. That’s forced them to seek currency on the parallel market, where the naira reached a low of 340 against the dollar on Monday.

“The average consumer is already facing a de facto devaluation, and this has driven up prices,” Alan Cameron, an economist at Exotix Partners LLP in London, said in an e-mailed responses to questions. While food prices have risen higher than the main rate, pressure in the last few months has come from core inflation, which excludes food costs, he said.

Economic growth which is estimated to have slowed to 3 percent last year, the lowest since 1999, is set to remain subdued.

“Given the drag on economic growth from the foreign-exchange restrictions in place in order to keep the naira steady, there is a big economic cost to avoiding devaluation,” said William Jackson, the London-based senior emerging markets economist at Capital.

Source: Bloomberg.

February 15, 2016

CBN may be forced to devalue naira – GTBank

The Central Bank of Nigeria (CBN) might be compelled to devalue the naira if oil price declines further and stays below current levels for a protracted period of time, Guaranty Trust Bank said in a forecast.
The apex bank has rebuffed local and international pressure to devalue the naira but pan-African lender, GT Bank, said it believes the CBN’s stance might not hold on for the entire year given the forecast that oil prices are set to fall  below present levels, which would result in further decline of external reserves.CBN

Detailing its economic expectations for 2016 after a holistic review of the Nigerian macroeconomic landscape, the bank in a report released over the weekend said it expects to see inflation trend slightly above 10 percent in the first half of 2016 as the CBN’s target to keep inflation at single digit is not sustainable.
Despite the role the ambitious reform agenda and policy direction of the new administration will play in restoring confidence to the economy, the bank said it expects economic growth to remain relatively low in the first half but gradually pick up in the second half of the year.
“The country’s external reserves which stood at $34.47bn as at December 31st, 2014 declined by $5.40bn (15.67%) to close the 2015 financial year at $29.07bn on December 31st, 2015.
With the price of oil, which accounts for more than 90% of the country’s exports, hovering around $28 per barrel in January 2016 and backlogs of unmet FX demand, we expect further depletion of the reserves in 2016,” the bank said.

February 15, 2016
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