Lukman Otunuga

    Naira weakens despite dollar selloff

Naira weakens despite dollar selloff

As the worldwide race for a coronavirus vaccine gathers pace and fiscal stimulus uplifts global sentiment, investors seem to be favouring riskier currencies at the expense of the dollar. The Nigerian naira has struggled to exploit the improving market mood, with the local currency weakening to N472 to a dollar at the parallel market in Lagos. Africa’s largest economy remains entangled in [...]

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    Nigeria navigates through coronavirus storm

Nigeria navigates through coronavirus storm

As headwinds from the coronavirus pandemic storm lambaste the world economy, the outlook for Nigeria appears more cloudy for the second half of the year. The next few months are critical for the country’s fragile economic recovery and the main question is whether Nigeria will sink or swim in the coronavirus storm. On the positive side, the federal government announced the second [...]

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    Inflation jumps, oil prices rise while naira stabilises

Inflation jumps, oil prices rise while naira stabilises

In the face economic instability and uncertainty, Nigeria eased lockdown restrictions this month to jumpstart growth. The opening up of more sectors of the economy is a welcome development and may even boost consumption which accounts for a handsome chunk of gross domestic product (GDP). However, a rising number of coronavirus cases may sabotage the government’s efforts to reviving Africa’s largest [...]

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    Week in review: Dollar loses mojo, oil falls but naira stabilises

Week in review: Dollar loses mojo, oil falls but naira stabilises

This has been a rollercoaster week defined by volatile stock markets, dollar weakness, a dovish Federal Reserve and shaky oil prices. Global confidence remains fragile thanks to coronavirus-related concerns with lingering fears over slowing global growth and trade tensions fostering a sense of caution. This sentiment was reflected across equity markets on Thursday, as stocks suffered their biggest one-day pull-back in [...]

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    COVID-19: Is the worst over for Nigeria or is it just the tip of the iceberg?

COVID-19: Is the worst over for Nigeria or is it just the tip of the iceberg?

Africa’s largest economy expanded by 1.87 percent in the first quarter of 2020, bucking the global trend of recessions triggered by the coronavirus pandemic. For comparison’s sake, the performance represented a contraction by 0.68 percent compared to the 2.55 percent growth rate recorded in the Q4 2019 and 0.23 percent, when compared to 2.10 percent growth witnessed in Q1 2019. What does [...]

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    What does sub-zero oil mean for Nigeria’s economic outlook?

What does sub-zero oil mean for Nigeria’s economic outlook?

April 20, 2020 will go down in the history books as the day when WTI crude futures expiring in May plunged more than 300 per cent, falling as low as minus $40.32 per barrel amid COVID-19 pandemic lockdowns. Utter chaos ensued after the US benchmark prices for crude oil went sub-zero for the first time ever, driven down by the producer’s [...]

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    Nigeria week ahead: Oil, inflation and PMI in focus

Nigeria week ahead: Oil, inflation and PMI in focus

A darker mood awaits the largest economy in Africa as oil descends to levels to not seen in more than two decades below $15. Over the past few months, the story defining oil’s steep depreciation revolved around the coronavirus chaos, fears over falling demand, slowing global growth and oversupply concerns. With the grim outlook for oil growing grimmer by the [...]

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    How is coronavirus impacting Nigeria’s economy?

How is coronavirus impacting Nigeria’s economy?

On March 26, Nigeria joined many other nations banning flights into the country and urging shelter-in-place, social isolation practices amid the COVID-19 pandemic. President Buhari approved a N10 billion grant to the epicentre, Lagos, to fight the outbreak in the region and a N5 billion grant to support the Nigerian Centre for Disease Control. Exports of oil and gas will continue and [...]

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    Will the Central Bank of Nigeria pull the rate cut trigger?

Will the Central Bank of Nigeria pull the rate cut trigger?

As the coronavirus outbreak creates shockwaves across the globe, central banks and governments are enforcing emergency measures to defend their respective economies. It was only last week that the Central Bank of Nigeria (CBN) technically devalued the naira at the investors and exporters (I&E) windows of the nation’s foreign exchange markets. While this move may attract foreign exchange investors due to the [...]

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    Nigeria’s economic outlook threatened by coronavirus outbreak

Nigeria’s economic outlook threatened by coronavirus outbreak

The dramatic and fast-moving consequences of the coronavirus (COVID-19) outbreak threatens an otherwise resilient outlook for Nigeria’s economy, following GDP results for Q4 showing an expansion of 2.55%. The growth was the highest seen since 2015 and above the International Monetary Fund’s (IMF) 2.1% forecast. The economy is supported by the Central Bank of Nigeria’s (CBN) policies to boost credit growth like [...]

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    Nigeria stands tall amidst the global market chaos

Nigeria stands tall amidst the global market chaos

2019 was packed with uncertainty thanks to persistent trade drama, global growth fears and volatile oil prices. Unfavourable global economic conditions left no prisoners with both developed countries and emerging markets feeling the heat. Although the market mood slightly improved during the final months of 2019 amid trade optimism, caution remained a dominant market theme. Nevertheless, Nigeria was able to capitalise [...]

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    Nigeria’s inflation hits near two-year high, IMF strikes again

Nigeria’s inflation hits near two-year high, IMF strikes again

Rising inflationary pressures could not have come at the worst possible time for Nigeria. The country is currently grappling with lower oil prices and fears over the coronavirus’s impact on the global economy. Consumer prices in Africa’s largest economy jumped 12.1% in January as food shortages caused by the border closures continued to boost the prices of staples. With inflation rising for [...]

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    Nigeria week ahead: stocks, oil and coronavirus in focus

Nigeria week ahead: stocks, oil and coronavirus in focus

Speculation over central banks easing monetary policy in the face of coronavirus fears and slowing global growth may support appetite for riskier assets in the short term. The Nigerian Stock Exchange all-share index has entered the trading week on a positive note, gaining 0.15% this morning and over 4.70% since the start of 2020. While the index has the potential to push [...]

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    Coronavirus, oil, naira and dollar in focus

Coronavirus, oil, naira and dollar in focus

This will be a relatively quiet week for the Nigerian economy data-wise with the latest Stanbic IBTC PMI figures under the spotlight. The PMI figures for January are projected to rebound from the 56.8 in December to 57.0 as Nigeria’s private sector continues to recover. While domestic data may boost sentiment towards the economy and support local stocks, external factors in [...]

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    Nigeria week ahead: CBN on mission to tame inflation

Nigeria week ahead: CBN on mission to tame inflation

Rising fears over the human and economic cost of the coronavirus in Asia should set a negative tone across global markets in the week ahead. Appetite for riskier assets including stocks and emerging markets are likely to diminish as investors rush towards prime destinations of safety like gold. The Nigerian naira like many other emerging market currencies could weaken on renewed global [...]

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    CBN to maintain status quo on rates as inflation quickens

CBN to maintain status quo on rates as inflation quickens

The latest inflation figures from Nigeria will most likely deter the Central Bank of Nigeria (CBN) from cutting interest rates anytime. Consumer prices in Nigeria accelerated for the fourth straight month in December last year, hitting its highest level since April 2018 at 11.98% as food prices continued to climb amid the on-going border closure. With inflationary pressures making an unwelcome return [...]

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NOTE: The black market rates represent the most prevalent. They could be slightly higher or lower among different sellers.
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