O3 Capital, a leading Nigerian fintech and the country’s first non-bank credit card issuer, has disclosed that the launch of its four American Express (‘Amex’) cards have been met with huge demand both in and out of Nigeria.

Chief Executive Officer of O3 Capital, Abimbola Pinheiro, in a statement said, “We are delighted with the amazing response to our launch of American Express cards in Nigeria.

“The success of the Green and Platinum cards, in particular, shows the market’s enthusiasm for modern financial solutions. We are proud to support both individual and corporate customers in their financial journeys.

“Our cards launch has also struck a major chord with established banks and fintechs – many of whom have approached us to partner with them. The future for O3 is exciting.

“We are also pleased to have received a positive acknowledgment from the Government of Nigeria, to our exciting developments – and which is aligned with the Financial System Strategy 2020 of the Central Bank of Nigeria (CBN), and the main thrust of a ‘cashless Nigeria’,” he stated.

Abimbola further said the acknowledgment underscores the importance of O3 Capital’s contribution to the country’s financial ecosystem.

In May 2024, O3 Capital announced an agreement with American Express to issue four new American Express credit cards: the O3 American Express® Green Card for consumers, the O3 American Express Gold Card for consumers, and the O3 American Express Platinum® Card for consumers; and the O3 American Express Gold Business Card for small- and medium-sized enterprises (SMEs).

The Debt Management Office says the rise in Nigeria’s public debt stock from N97.34 trillion in December 2023 to N121.67 trillion in March is partly due to exchange rate fluctuations.

The Director-General of DMO, Patience Oniha, said this in an interview with journalists.

She was clarifying misconceptions about the recently released update of the country’s total debt profile.

She said that the securitisation of N4.90 trillion as part of the securitisation of the N7.3 trillion Ways and Means Advances approved by the National Assembly was also responsible for the N24.33 trillion increase in the debt stock.

According to her, there is also the interest rate, as well as new borrowing of N2.81 trillion as part of the N6.06 trillion provided in the 2024 budget.

She, however, emphasised that the debt stock included the domestic and external debt stock of the 36 states and the Federal Capital Territory (FCT).

“The total public debt as of March 31, showed that the total public debt in Naira terms stood at N121.67 trillion compared to N97.34 trillion as of December 31, 2023.

“While detailed information was provided on the data, such as the split between external and domestic debt as well as the fact that the debt stock includes the domestic and external debt stock of the 36 states and the FCT, it has become imperative to provide some explanations.

“It is important to recognise the fact that Nigeria has undergone some major reforms that have impacted economic indices such as the dollar/Naira exchange rate and interest rates.

“These two, in particular, affect the debt stock and debt service,” she said.

Oniha said that the increase in Naira in terms of N24.33 trillion between the fourth quarter of 2023 and the first quarter of 2024, did not strictly represent new borrowing.

She said that the total external debt stock was relatively flat at 42.50 billion dollars and 42.12 billion dollars in the fourth quarter of 2023, and the first quarter of 2024, respectively.

“The Naira values were significantly different at N38.22 trillion and N56.02 trillion, respectively, representing a difference of N17.8 trillion.

“This explains the perceived sharp increase of N24.33 trillion in the total debt stock in the first quarter of 2024.

“The difference in the exchange rate for the two periods also explains why, in dollar terms, the total debt stock actually declined in the first quarter of 2024 to 91.46 billion dollars,” Oniha said.

She said that the debt report was somewhat an improvement from the past, before President Bola Tinubu’s government.

According to her, “if you discount FX impact, the debt is moderate and within the normal limit.”

She urged the Federal Government to prioritise fiscal retrenchment while assuring that the various measures to attract foreign exchange inflows would increase external reserves and support the Naira exchange rate.

A consulting firm, PwC, has projected a marginal decline in Nigeria’s inflation to 29.5 percent by the end of this year.

The company made the projection in its latest economic outlook report on Nigeria released on Monday. According to the company, the decline would be achieved as a result of the ongoing reforms and policy actions of the government.

As of May, data from the National Bureau of Statistics (NBS) shows Nigeria’s inflation rate surged to 33.95 percent in May 2024, up from 33.69 percent in April 2024.

“PwC projects a marginal decline in inflation to 29.5 percent by year-end, balancing the effects of reforms, policy actions, external pressures, and food prices; particularly in the second half of the prices outlook year,” the company stated.

Despite the positive projection, the company highlighted key considerations for the government in the areas of policies that could help stabilise the economy.

Specifically, it urged the government to prioritise macro stability by addressing security, social and pressure points of inflation, and exchange rate pressures.

According to PwC, the government would also need to mobilise capital to drive growth through market focused policies, intensification of investment promotion. It also advised the government to make short- and long-term sectoral bets focused on exports, domestic substitution, and job creation.

“Government must drive fiscal prudence by optimising spending on capital projects with the highest ROI, rationalise public service spending and improve revenue diversification and collection efficiency. It must decide when and how to introduce, defer, sequence, or stagger different policies based on current economic and social conditions,” the firm added.

Citing the recently introduced and suspended cybersecurity levy as an instance, PwC advised the government to adopt scenario planning before any major economic reform is implemented to avoid unwarranted policy reversals.