TodayPrice

Author: Val Kosi

  • Angola Holds Interest Rates Amid Cooling Inflation

    Angola Holds Interest Rates Amid Cooling Inflation

    The Bank of Angola on Tuesday opted to maintain its key interest rate at 19.50% for the fourth consecutive meeting, a decision driven by a continued, albeit gradual, decline in inflation.

    While price pressures remain elevated, the central bank acknowledged a discernible slowdown in both monthly and annual inflation rates after peaking in the mid-year.

    “Prices for goods and services remain at a high level,” Governor Manuel Tiago Dias acknowledged to reporters, “however, we are observing a deceleration in both monthly and year-on-year inflation following its peak in June and July of this year.”

    This decision comes amidst a backdrop of easing inflationary pressures. Angola’s annual inflation rate dipped slightly in December to 27.50%, marking a modest decline from the 28.41% recorded in November.

    While acknowledging the challenges posed by persistently high inflation, the central bank remains cautiously optimistic about the country’s economic trajectory. Governor Dias revised upwards the projected economic growth for 2024 to 4.4%, surpassing the previous forecast of 4%. For the year 2025, the central bank anticipates a more moderate growth rate of 3.5%.

    This decision underscores the delicate balancing act faced by the Bank of Angola. While maintaining a restrictive monetary policy stance is crucial to combat inflation, the central bank must also consider the potential impact on economic growth.

    It’s important to remember that inflation remains a significant concern for Angolan households. The high cost of living continues to erode purchasing power, impacting the daily lives of many citizens. The central bank’s commitment to bringing inflation back within its target range is therefore paramount.

    It is expected that the Bank of Angola will closely monitor economic developments, both domestically and internationally. Global factors, such as commodity price fluctuations and the evolving global economic landscape, will undoubtedly influence the bank’s future monetary policy decisions.

     

     

  • Portugal Ditches Russian Gas, Eyes U.S. and Nigerian LNG

    Portugal Ditches Russian Gas, Eyes U.S. and Nigerian LNG

    Portugal has effectively severed its reliance on Russian natural gas, a significant shift in its energy strategy following the Kremlin’s invasion of Ukraine. The country is now actively pursuing increased imports of liquefied natural gas (LNG) from the United States and Nigeria to further solidify its energy independence.

    This strategic move reflects a growing trend across Europe to diversify energy sources and reduce dependence on Russian fossil fuels. While the European Union has imposed sanctions on Russian pipeline gas, LNG imports via sea remain permissible.

    “Portugal is now practically independent of Russian gas,” Environment Minister Maria da Graca Carvalho stated at the World Economic Forum in Davos, as reported by the Portuguese economic website ECO. “But we want to reduce this figure further by importing more gas from Nigeria and the United States.”

    This shift in energy policy is a testament to the geopolitical realities of the post-invasion era. Portugal, like many European nations, is grappling with the urgent need to secure reliable and sustainable energy supplies while mitigating the risks associated with reliance on a single supplier.

    The data paints a clear picture of this transformation. In 2024, LNG accounted for a staggering 96% of Portugal’s natural gas imports, totaling 49,141 gigawatt-hours (GWh). Nigeria emerged as the leading supplier, contributing 51% of these imports. The United States followed closely, providing approximately 40%.

    This stark contrast with 2021, when Russia supplied 15% of Portugal’s LNG imports, underscores the dramatic shift in the country’s energy landscape.

    While this move aligns with the broader European push for energy independence, challenges remain. Minister Carvalho highlighted the need for enhanced cooperation within the European Union, particularly in addressing the issue of interconnectivity. She emphasized that the Iberian Peninsula remains an “energy island,” hampered by limited grid connections with France.

    This isolation presents a significant obstacle to the seamless integration of renewable energy sources and the efficient flow of electricity across the continent. Overcoming this challenge will be crucial for Portugal to fully realize its energy transition goals and contribute to a more resilient and sustainable energy future for Europe.

  • South Africa’s Economic Outlook Brightens, But Inflation Clouds Loom

    South Africa’s Economic Outlook Brightens, But Inflation Clouds Loom

    South Africa economy landscape is shifting, offering a glimmer of hope after years of sluggish growth. While the road ahead remains uncertain, the country appears poised for a modest recovery in 2025, according to Reserve Bank Governor Lesetja Kganyago.

    Speaking at the World Economic Forum in Davos, Switzerland, Governor Kganyago projected that economic growth could reach close to 2% this year, a significant improvement from the anemic 1.1% recorded in 2024.

    “Depending on who is forecasting, growth varies between 1.6% and 2% (this year). We think… it would be closer to 2% than closer to 1.6%,” he told the Reuters

    This optimistic outlook hinges on the formation of a broad coalition government last year, which has injected fresh momentum into the stalled reform agenda.

    South Africa economy landscape is shifting, offering a glimmer of hope after years of sluggish growth. While the road ahead remains uncertain, the country appears poised for a modest recovery in 2025, according to Reserve Bank Governor Lesetja Kganyago.

    Speaking at the World Economic Forum in Davos, Switzerland, Governor Kganyago projected that economic growth could reach close to 2% this year, a significant improvement from the anemic 1.1% recorded in 2024.

    “Depending on who is forecasting, growth varies between 1.6% and 2% (this year). We think … it would be closer to 2% than closer to 1.6%,” he told the Reuters

    This optimistic outlook hinges on the formation of a broad coalition government last year, which has injected fresh momentum into the stalled reform agenda.

    “The structural reform agenda has gained momentum,” Governor Kganyago emphasized, highlighting the “Government of National Unity” and its laser focus on propelling South Africa economy trajectory to new heights. This coalition, a departure from the long-ruling African National Congress’s dominance, includes the business-friendly Democratic Alliance and a diverse range of smaller parties.

    Investors are cautiously optimistic, anticipating that reforms in critical sectors like electricity, freight rail, and the visa system will gain traction, finally breaking free from the shackles of the past decade, during which average annual growth languished below 1%.

    However, this nascent optimism is tempered by a looming threat: inflation. Governor Kganyago cautioned that the inflation outlook is fraught with uncertainty, citing various factors that could muddy the waters. These include protectionist policies, a volatile rand exchange rate, fluctuating global oil prices, and escalating domestic food prices. “There are too many moving parts,” he acknowledged, making it difficult to predict price pressures with any certainty.

    While inflation remains relatively subdued at present, with November’s annual consumer inflation rate at 2.9% – below the Reserve Bank’s target range of 3%-6% – analysts expect it to gradually rise throughout the year. The Reserve Bank itself forecasts an average inflation rate of approximately 4.5% for 2025, the midpoint of its target range.

    Despite these concerns, the South African Reserve Bank has signaled a dovish stance. The bank recently cut interest rates at two consecutive meetings, and many analysts anticipate another rate cut at the upcoming policy announcement.

    South African economy in 2025 will undoubtedly be challenging. Navigating the twin pressures of economic growth and inflation control will require careful policy decisions and a sustained commitment to reform. While the current outlook offers a degree of optimism, the South African government and its central bank must remain vigilant and responsive to the evolving economic landscape.

     

  • Beatrice Ekweremadu Released from UK Prison, Returns to Nigeria

    Beatrice Ekweremadu Released from UK Prison, Returns to Nigeria

    Mrs. Beatrice Ekweremadu, wife of former Deputy Senate President Senator Ike Ekweremadu, has been released from a UK prison and has returned to Nigeria.

    According to reports, Beatrice arrived in the country on Tuesday and is currently in Abuja.

    Her release comes months after she was sentenced to six years in prison by a UK court for her involvement in an organ harvesting scheme. The case also implicated her husband, Senator Ekweremadu, who received a 10-year prison sentence, and Dr. Obinna Obeta, whose sentence was not specified.

    The UK court found the trio guilty of attempting to procure a kidney from a young Nigerian boy to donate to the Ekweremadus’ ailing daughter, Sophia.

    The conviction was a landmark ruling, marking the first successful prosecution under the UK’s Modern Slavery Act of 2015.

  • CBN to Launch FX Code, Emphasising Ethical Conduct in Nigeria’s Foreign Exchange Market

    CBN to Launch FX Code, Emphasising Ethical Conduct in Nigeria’s Foreign Exchange Market

    The Central Bank of Nigeria (CBN) announced the imminent launch of the Nigerian Foreign Exchange (FX) Code. This landmark development, slated for January 28th, 2025, will serve as a crucial guide for authorised dealers, promoting ethical conduct and ensuring compliance within the Nigerian Foreign Exchange Market (NFEM). This move is significantly poised to enhance the integrity and transparency of Nigeria’s foreign exchange market

    “The Bank will formally launch the Code at the CBN Head Office Auditorium, Abuja, on Tuesday, January 28, 2025,” the CBN stated in a notice published on its official website. This launch signifies a pivotal moment in the CBN’s ongoing efforts to strengthen the governance and transparency of the FX market.

    Recall that the CBN, in a proactive step towards bolstering market integrity, introduced revised guidelines for the NFEM in November 2024. A key pillar of these guidelines mandates that bank boards, alongside their Chief Executive Officers (CEOs) and Chief Compliance Officers, annually attest to the Nigeria FX Code of Ethics and Conduct. This crucial attestation underscores a firm commitment to upholding market integrity and ensuring strict adherence to all CBN-issued circulars and guidelines.

    These revised guidelines, as emphasised by Omolara Omotunde Duke, director of the CBN’s financial markets department, supersede earlier directives, including operational changes announced in June 2023 and prior circulars dating back to 2017. The overarching objective is to deepen the foreign exchange market, building upon the successful consolidation of all official FX market windows.

    Under the new framework, authorised dealers are entrusted with the critical responsibility of facilitating FX transactions for both individuals and businesses while ensuring unwavering compliance with all applicable regulations. This encompasses diligent due diligence procedures, transparent pricing mechanisms, and the provision of accessible market access through innovative digital solutions. Furthermore, the guidelines unequivocally state that all legitimate FX transactions must exclusively transpire through authorised dealers. Dealing with unlicensed intermediaries is strictly prohibited.

    The revised guidelines also encompass Bureaux de Change (BDC) operators, granting licensed BDCs the authority to purchase FX from authorised dealers to fulfil customer demands, albeit within specific limits established by the CBN. Importantly, all FX transactions undertaken by BDCs, International Money Transfer Operators (IMTOs), and authorised dealers must adhere to the stringent terms of their respective licenses and the overarching principles outlined in the Nigeria FX Code.

    This significant development marks a crucial juncture in the evolution of Nigeria’s foreign exchange market. By emphasising ethical conduct and promoting transparency, the CBN aims to foster a more robust and resilient FX market that serves the best interests of the Nigerian economy and its citizens.

  • “Drill, Baby, Drill” Across the Globe: Unexpected Boon for Kenyan Economy?

    “Drill, Baby, Drill” Across the Globe: Unexpected Boon for Kenyan Economy?

    Recent shifts in US energy policy may unexpectedly turn the tides for the Kenyan economy, long tethered to the whims of global oil markets. While the stated aim of these policies was to bolster domestic energy production within the United States, their impact is rippling across the globe, potentially offering a lifeline to nations like Kenya that are heavily reliant on oil imports.

    “Drill, baby, drill,” the rallying cry of a bygone era, has seemingly found new life, leading to a surge in US oil and gas production. This surge has had a direct and immediate impact on global oil prices. Brent crude oil, the international benchmark, has recently fallen below the psychologically significant $80 per barrel mark in London, a development that has sent shockwaves through global markets.

    “If it results in lower fuel prices,” explained Kamau Thugge, Governor of the Central Bank of Kenya, “then it’s also possible that that will contribute to lower inflation in the US and also lower global inflation. And that could actually be a positive for us.”

    This is significant news for Kenya, a nation that currently imports all of its petroleum needs, amounting to a substantial 5.5 million cubic meters annually. The country remains acutely sensitive to fluctuations in global oil prices, making it highly vulnerable to external shocks.

    While inflation in Kenya has recently shown encouraging signs, falling to a 14-year low of 2.7% last year, the central bank remains cautious. The anticipated rise in inflation to around 3.3% by March underscores the ongoing challenges facing the Kenyan economy.

    However, the potential benefits of lower oil prices extend beyond mere price stability. For an import-dependent nation like Kenya, decreased fuel costs translate into lower transportation costs, a crucial factor for businesses and consumers alike. This can have a cascading effect, boosting economic activity across various sectors.

    Recent shifts in US energy policy may unexpectedly turn the tides for the Kenyan economy, long tethered to the whims of global oil markets. While the stated aim of these policies was to bolster domestic energy production within the United States, their impact is rippling across the globe, potentially offering a lifeline to nations like Kenya that are heavily reliant on oil imports.

    “Drill, baby, drill,” the rallying cry of a bygone era, has seemingly found new life, leading to a surge in US oil and gas production. This surge has had a direct and immediate impact on global oil prices. Brent crude oil, the international benchmark, has recently fallen below the psychologically significant $80 per barrel mark in London, a development that has sent shockwaves through global markets.

    “If it results in lower fuel prices,” explained Kamau Thugge, Governor of the Central Bank of Kenya, “then it’s also possible that that will contribute to lower inflation in the US and also lower global inflation. And that could actually be a positive for us.”

    This is significant news for Kenya, a nation that currently imports all of its petroleum needs, amounting to a substantial 5.5 million cubic meters annually. The country remains acutely sensitive to fluctuations in global oil prices, making it highly vulnerable to external shocks.

    While inflation in Kenya has recently shown encouraging signs, falling to a 14-year low of 2.7% last year, the central bank remains cautious. The anticipated rise in inflation to around 3.3% by March underscores the ongoing challenges facing the Kenyan economy.

    However, the potential benefits of lower oil prices extend beyond mere price stability. For an import-dependent nation like Kenya, decreased fuel costs translate into lower transportation costs, a crucial factor for businesses and consumers alike. This can have a cascading effect, boosting economic activity across various sectors.

    Yet, as Governor Thugge wisely noted, the situation is not without its complexities. The rise in US interest rates, a likely consequence of the Federal Reserve’s efforts to combat inflation, could potentially lead to capital outflows from emerging markets like Kenya. As he pointed out, “That also has an impact on us because of the potential of capital now flowing back to the US as interest rates would remain more elevated than our earlier expectations.”

    This presents a delicate balancing act for the Kenyan central bank. While lower oil prices offer a much-needed respite, the potential for capital flight and the accompanying risks to economic stability demand careful monitoring and proactive policy adjustments.

    The Kenyan experience serves as a stark reminder that the interconnectedness of the global economy can bring both opportunities and challenges. As the US continues to reshape its energy landscape, the reverberations will undoubtedly be felt far beyond its borders, impacting nations like Kenya in profound ways.

  • Lagos Short-Let Market Explodes: Prices Soar Over 200% in 2024

    Lagos Short-Let Market Explodes: Prices Soar Over 200% in 2024

    The Lagos residential real estate market experienced a seismic shift in 2024, with short-let apartment prices exploding by over 200%. This dramatic surge follows a moderate 12.95% increase in 2023, painting a picture of unprecedented growth in the city’s dynamic property landscape.

    The BuyLetLive 2024 Nigeria Property Price Index Report, a cornerstone of the Nigerian real estate industry, revealed these staggering figures. “Short-let apartments recorded the most notable growth, with prices surging from 12.95% in 2023 to 46.40% in 2024, reflecting an increase of over 200%,” the report stated.

    This explosive growth is a testament to the multifaceted pressures shaping the Lagos property market. Soaring inflation and escalating development costs have forced developers to significantly increase prices to maintain profitability. This, coupled with the city’s burgeoning population and its status as Nigeria’s economic powerhouse, has created a perfect storm of demand.

    “Lagos, despite being the smallest state geographically, is home to a staggering 27.4% of Nigeria’s urban population, now estimated at a staggering 16.54 million,” the report highlighted. This rapid urbanization exerts immense pressure on the housing market, fueling competition and driving prices upwards.

    The report further underscores the diverse factors influencing this dynamic market. Millennials are driving demand in the rental sector, while baby boomers continue to dominate sales transactions. Infrastructure improvements, such as the revitalization of the Third Mainland Bridge and the development of affordable housing projects, have provided a degree of support.

    However, the report also acknowledges the complexities of this evolving landscape. Rising costs and shifting investor priorities have led some to exit the market, introducing new variables into the equation.

    Read Also: Lagos Unveils “Omo-Eko” App: A Tech-Driven Leap Towards Smart City Mobility

    Geographical Breakdown of the Surge

    The price hikes were not uniform across the city. Ikoyi, a prime residential area, witnessed the most dramatic increase at 60%. Lekki Phase 1 followed closely, while Surulere saw a more moderate 30% rise. Ikeja experienced a 42% increase, and Magodo saw a significant surge exceeding 50%. Ajah and Yaba also recorded substantial growth, while Victoria Island experienced a notable uptick, albeit below the 60% mark.

    Beyond Short-Lets

    The surge in short-let prices is just one facet of a broader trend. Rental apartments witnessed a remarkable 47.25% increase, with rental houses closely following at 44.85%. The sales market also experienced significant growth, with house prices climbing by 39.7% and apartment prices by 38.74%. Land prices also saw a notable increase of 27.63%.

    The Lagos real estate market is undeniably dynamic and presents both significant opportunities and challenges. While the city’s economic vitality and growing population continue to fuel demand, the impact of inflation, rising costs, and shifting demographics cannot be ignored. Navigating this complex landscape requires a nuanced understanding of market trends and a proactive approach to investment strategies.

  • 2025 Budget: Senate Rejects Information Ministry’s Budget, Demands Increased Funding

    2025 Budget: Senate Rejects Information Ministry’s Budget, Demands Increased Funding

    The Senate Committee on Appropriations has emphatically rejected the Federal Ministry of Information and National Orientation’s 2025 budget proposal, labeling it woefully inadequate.

    This decisive action, announced by Committee Chairman Senator Kenneth Eze during the Minister, Mohammed Idris’s budget defense, underscores the critical need for increased government support for public communication and national orientation.

    Senator Eze, expressing the committee’s unanimous stance, emphasized the ministry’s pivotal role in driving the President’s transformative agenda. “Last year,” he stated, “we strongly advocated for substantial funding for the information sector, recognizing its immense importance. Unfortunately, our recommendations were largely ignored. Now, the ministry returns with an even lower allocation, which we find utterly unacceptable.”

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    He continued, “The government must understand that effectively disseminating information and promoting national values requires adequate resources. We cannot, in good conscience, approve this grossly underfunded proposal. We have therefore returned the budget to the ministry, demanding a significant increase or facing the possibility of zero allocation.”

    Minister Idris, while acknowledging the ministry’s mandate to protect and defend Nigeria’s image, highlighted the 2024 initiatives aimed at enhancing public communication and citizen engagement. However, these efforts, crucial in today’s rapidly evolving information landscape, are severely hampered by inadequate funding.

    This rejection by the Senate sends a strong message to the government about the critical importance of investing in effective public communication. In an era of increasing information overload and the rise of misinformation, a well-funded and empowered Ministry of Information is not just desirable, it is essential for national development.

     

  • 2025 Budget: Labour Minister Seeks Budget Boost for National Skills Development Initiative

    2025 Budget: Labour Minister Seeks Budget Boost for National Skills Development Initiative

    The Minister of Labour and Employment, Muhammad Maigari Dingyadi, has called for an urgent increase in budgetary allocation, stating that the current N46 billion allocation falls short of achieving the ministry’s ambitious employment generation targets for 2025.

    In a decisive move to address Nigeria’s mounting unemployment challenges, Dingyadi presented his case before both the House Committee and Senate Committee on Employment, Labour and Productivity, emphasizing the critical need for enhanced funding to revitalize skills development centers nationwide.

    “The current allocation simply cannot support our vision for sustainable employment generation,” Dingyadi declared during the 2025 Budget Defence meetings in Abuja. “We’re looking at a comprehensive overhaul of our skills development infrastructure, which requires substantial investment.”

    The Minister’s appeal aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which positions job creation as a cornerstone of economic revival. Dingyadi highlighted a crucial distinction in employment strategies, noting that while infrastructure projects create immediate jobs, these positions are predominantly temporary and unskilled.

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    “Over 60% of infrastructure-related employment opportunities are unsustainable,” the Minister explained. “Our focus must shift toward creating skilled positions that offer long-term career prospects and contribute to national economic growth.”

    Senator Diket Planning, Chairman of the Senate Committee on Employment, Labour, and Productivity, voiced support for the Ministry’s request, acknowledging the need for increased funding to achieve its mandate effectively.

    The initiative has gained additional backing from Hon. Adefarati Adegboyega, Chairman of the House Committee on Employment, who emphasized the superiority of sustainable employment programs over temporary relief measures.

    “Palliatives offer momentary respite, but skill development creates lasting solutions,” Adegboyega stated. “We must invest in programs that equip our youth with practical skills for the modern job market.”

    The Ministry’s proposed budget would facilitate the renovation and modernization of skills development centers across Nigeria, providing essential training and starter packs for graduates to establish self-sustaining businesses.

    Industry experts suggest this approach could significantly impact Nigeria’s unemployment rate, currently one of the highest in sub-Saharan Africa. The focus on skills development aligns with global best practices in workforce development and economic growth strategies.

    As budget discussions continue, the outcome of this funding request could determine the trajectory of Nigeria’s employment landscape for years to come, particularly affecting the nation’s youth population seeking sustainable career opportunities.

  • Trump Signs Order to Pull US Out of WHO

    Trump Signs Order to Pull US Out of WHO

    US President Donald Trump has signed an executive order initiating the withdrawal of the United States from the World Health Organization (WHO).

    The order, issued on Monday, marks Trump’s latest controversial move following his return to the presidency.

    The executive order cited multiple reasons for the withdrawal, including the WHO’s alleged mishandling of the COVID-19 pandemic, failure to implement necessary reforms, and perceived political influence from member states.

    “The US is withdrawing due to the organization’s mishandling of the Covid-19 pandemic that arose out of Wuhan, China, and other global health crises, its failure to adopt urgently needed reforms, and its inability to demonstrate independence from the inappropriate political influence of WHO member states,” the order stated.

    The order also criticized the WHO’s funding model, claiming it imposed “unfairly onerous payments” on the US, which are disproportionate compared to contributions from other countries, such as China.

    Speaking at the signing ceremony, Trump expressed his dissatisfaction with the organization’s conduct.

    “World Health ripped us off; everybody rips off the United States. It’s not going to happen anymore,” he said.

    This is the second time Trump has moved to pull the US out of the global health body. In 2020, during his first term, Trump heavily criticized the WHO for its handling of the COVID-19 pandemic, accusing the organization of favoring China. While he initiated the withdrawal process at the time, President Joe Biden reversed the decision upon assuming office.

    The US has long been the largest contributor to the WHO, providing nearly one-fifth of its budget in 2023. The withdrawal means the US will officially leave the organization in 12 months.