Five things to know to start your Wednesday

TikTok’s founder is now China’s richest man

ByteDance founder Zhang Yiming is now China’s wealthiest person with $49.3 billion to his name, according to a yearly ranking of rich Chinese citizens released Tuesday.

Zhang, who is 41 and stepped down as ByteDance’s CEO in 2021, becomes the 18th person to top the Hurun China Rich List since it began 26 years ago.

He moved ahead of Zhong Shanshan, a bottled water business owner, whose wealth dropped 24% to $47.9 billion, putting him in second place.

Notably, the number of billionaires in China fell by 142 to 753, which is less by over one-third of its highest point in 2021.

World Bank tells CBN to stop ad-hoc FX auctions

The World Bank has advised the Central Bank of Nigeria (CBN) to stop holding foreign exchange auctions to control currency rates.

Instead, the World Bank suggests the CBN should stick to a flexible exchange rate system by creating clear and open rules for handling foreign currency in the market.

This advice was part of the World Bank’s Nigeria Development Update report, which aims to help stabilise the value of the naira against other currencies.

Earlier, on August 26, 2024, the CBN sold $876.26 million directly to users through a retail Dutch auction, moving away from its usual practice of selling foreign currency to money changers.

Africa is the biggest receiver of financing from the World Bank

The World Bank Group announced that its investments in Africa have reached $38 billion in 2024. That makes Africa the biggest receiver of financing from the institution.

According to the World Bank, the allocation was part of its continued efforts to support Africa’s development across multiple fronts, including poverty reduction, climate resilience, and economic growth.

Notably, this funding has come via a mix of loans, grants, equity investments, and guarantees to partner countries and private businesses across the continent.

Europe and Central Asia received $24.7bn, while Latin America and the Caribbean got $19.4bn.

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32 Nigerian states got most of their revenue via Federal allocation

A new report shows that most Nigerian states heavily depend on money from the federal government to function. This report was created by BudgIT, an organisation that helps people understand government spending.

Here’s what they found: out of Nigeria’s 36 states, 32 of them got more than half (55%) of their money from the federal government in 2023. This is concerning because it means these states might struggle if there’s any problem with federal funding or oil revenue.

Also, only two states – Lagos and Rivers – could cover their basic running costs with money they generated themselves. In contrast, states like Akwa Ibom, Bayelsa, and Taraba needed more than five times their self-generated income to pay for basic operations, making them very dependent on federal support.

Standard Chartered warns that oil prices may spike after US elections

Standard Chartered Plc warns that oil traders are not taking Middle East risks seriously enough, and oil prices could rise if fighting between Israel and Iran intensifies after the U.S. election.

“We see the risk of an escalating series of attacks over an extended period, with no immediate prospect of either military or diplomatic resolution,” the bank’s analysts, including Emily Ashford and Paul Horsnell, wrote in their October 29 report. They pointed out that the two months before the presidential inauguration on January 20 could be particularly tense.