TodayPrice

Category: Economy

  • Most markets in retreat as Trump-fuelled economy fears build

    Most markets in retreat as Trump-fuelled economy fears build

    Asian markets mostly fell Tuesday following a sharp sell-off on Wall Street fuelled by fears about the US economy as Donald Trump presses ahead with his global trade war and federal jobs cuts.

    Traders had initially welcomed his election on optimism that his promised tax cuts and deregulation would boost the world’s top economy and help equities push to more record highs.

    But there is now a growing pessimism that a recession could be on the cards amid warnings that tariffs imposed on key trade partners will reignite inflation and force the Federal Reserve to hike interest rates again.

    The president’s weekend comments that the economy was facing “a period of transition” and his refusal to rule out a downturn did little to soothe investor worries.

    A new wave of tariffs due this week will see steep levies of 25 percent on steel and aluminum imports.

    Uncertainty over Trump’s tariffs and threats have left US financial markets in turmoil and consumers unsure of what the year might bring.

    Fears about the future battered Wall Street, where the Nasdaq tanked four percent owing to another plunge in high-flying tech titans including Apple, Amazon and Tesla.

    And Asia followed suit in the morning with big losses across the board, though they pared the losses as the day wore on.

    Tokyo was hit after Japanese Trade Minister Yoji Muto said he had failed to win an immediate exemption from US tariffs.

    Hong Kong was flat and Shanghai ended higher, having tanked at the open. They both fell Monday following a big miss on Chinese consumer prices that added to worries about the Chinese economy.

    Sydney, Singapore, Seoul, Taipei, Wellington, Mumbai, Bangkok and Manila were also deep in negative territory.

    London fell at the open while Frankfurt and Paris were higher.

    US futures also inched higher, having extended Monday’s losses in the morning.

    “Economic uncertainty and recession fears have intensified, partly driven by President Trump’s weekend comments about the economy being in ‘a period of transition’ and his reluctance to rule out a recession,” said Shaun Murison, senior market analyst at IG online trading platform.

    “This uncertainty has heightened investor anxiety. Trump’s trade policies, including ongoing tariff discussions are creating uncertainty and fears of economic slowdown.

    “These tariffs could potentially elevate prices and complicate efforts to reduce interest rates.”

    The weak sentiment also filtered through to bitcoin, which tumbled below $80,000 on Monday to its lowest level since November — having hit a record close to $110,000 in January. It also pared its losses to sit just above the $80,000 mark.

    The cryptocurrency’s losses have also been driven by disappointment that Trump signed an executive order to establish a “Strategic Bitcoin Reserve” without planning any public purchases of it.

    Oil also rebounded to sit slightly higher having dropped more than one percent Monday on worries about demand as US recession speculation builds. However, both main contracts remain down around seven percent for the year so far.

    – Key figures around 0815 GMT –

    Tokyo – Nikkei 225: DOWN 0.6 percent at 36,793.11 (close)

    Hong Kong – Hang Seng Index: FLAT at 23,782.14 (close)

    Shanghai – Composite: UP 0.4 percent at 3,379.83 (close)

    London – FTSE 100: DOWN 0.2 percent at 8,579.20

    Euro/dollar: UP at $1.0890 from $1.0836 on Monday

    Pound/dollar: UP at $1.2906 from $1.2878

    Dollar/yen: DOWN at 146.90 yen from 147.26 yen

    Euro/pound: UP at 84.31 pence from 84.13 pence

    West Texas Intermediate: UP 0.4 percent at $66.26 per barrel

    Brent North Sea Crude: UP 0.5 percent at $69.59 per barrel

    New York – Dow: DOWN 2.1 percent at 41,911.71 points (close)

  • UNN VC tasks SEDC on collaboration to transform Southeast

    UNN VC tasks SEDC on collaboration to transform Southeast

    ABUJA – The Acting Vice-Chancellor of the University of Nigeria, Nsukka (UNN), Prof. Oguejiofo T. Ujam, has called for collaboration between the South East Development Commission (SEDC) and tertiary institutions in the region to tackle pressing developmental challenges.

    Speaking at a special reception hosted by Prince Arthur Eze, Chairman of Oranto Petroleum, Prof. Ujam underscored the importance of partnerships in addressing issues such as erosion, unemployment, and infrastructural deficits.

    The event, held at the Oranto International Airport Hotel in Enugu, gathered key stakeholders, including Enugu State Governor Dr. Peter Ndubuisi Mbah, members of the National and State Assembly, and traditional and religious leaders.

    Prof. Ujam commended President Bola Tinubu for establishing the SEDC, describing it as a significant step towards fulfilling the long-overdue promise of Reconstruction in the Southeast.

    He highlighted the region’s critical challenges, including approximately 2,500 active erosion sites, a 28% unemployment and underemployment rate, and a severe infrastructure gap. He noted that the World Bank estimates Nigeria would need to invest $10 billion annually for 30 years to address these issues.

    The UNN Vice-Chancellor urged the SEDC Governing Board, led by Dr. Emeka Wogu, to align its programmes with President Tinubu’s Renewed Hope Agenda for sustainable development. He affirmed that universities in the Southeast, including UNN, are prepared to partner with the SEDC to modernise facilities such as classrooms, laboratories, libraries, and staff housing. Prof. Ujam also stressed the need for enhanced ICT infrastructure to support e-learning, research, and administration, particularly in the age of Artificial Intelligence (AI).

    Acknowledging the rising insecurity in the region, partly driven by separatist agitations, he called for collective efforts to address the socio-economic decline caused by political dissonance, social instability, and ecological degradation. He expressed confidence that collaboration between the SEDC and tertiary institutions could provide a vital pathway for rapid development in the Southeast.

    Prof. Ujam commended Prince Arthur Eze for organising the reception, seeing it as a valuable platform for stakeholders to engage with the SEDC and influence its policies. He urged the SEDC Governing Board to meet the high expectations of the region’s citizens by fulfilling its mandate to address the developmental void left by the civil war.

    He stated, “The UNN and other tertiary institutions in the Southeast are eager to partner with the SEDC. As members of the ivory tower, our doors are open for supportive ideas and collaborative ventures to advance the delivery of their ambitious mandate, aimed at achieving rapid development in the Southeast.

    “Given the magnitude of the region’s development issues, the World Bank calculated that Nigeria would need to spend $10 billion a year for the next 30 years to address the infrastructure gap in the Southeast.

    “By swiftly signing into law the Act establishing the SEDC and constituting the Governing Board, President Tinubu has accomplished what Napoleon Bonaparte could not. The SEDC stands as a testament to President Tinubu’s concern and understanding of the challenges faced by Southeastern Nigerians.

    “The potential for experiential learning is immense if this collaboration succeeds in delivering improved classrooms, libraries, laboratories, transportation systems, sustainable energy sources, student hostels, and staff housing.

    “The university library needs to be updated with contemporary resources, such as digital databases, online journals, and e-book subscriptions. To facilitate e-learning, research, and administration, institutions must enhance their ICT infrastructure, especially in light of the evolving knowledge economy driven by AI.

    “The success of this initiative would serve as a fitting tribute to President Tinubu for establishing the SEDC.

    “For the SEDC to fulfil its ambitious objectives, it is essential that stakeholders in Southeastern Nigeria have the platform and opportunity to actively engage, contribute, and support the Commission in shaping its policies and initiatives.”

  • Tax reform, good omen for Nigerians – CITN

    Tax reform, good omen for Nigerians – CITN

    The Chartered Institute of Taxation of Nigeria (CITN), says the tax reform by the Federal Government is a sign of good things to cone for majority of Nigerians.

    Mr Samuel Agbeluyi, the President of CITN, said this while speaking to newsmen on Friday in Jos.

    Agbeluyi is in Jos for CITN’s first Council Meeting for 2025.

    The president explained that the tax bill, if passed into law, would bring sanity into the practice and administration of taxation in Nigeria.

    “As an institute, we are happy over the ongoing dialogue on the new tax bills; if these bills are passed into law, it will make the system better.

    “The reform will improve the revenue of the nation.

    “I’m not talking about increased tax for Nigerians, but the sanity the reform will bring into the practice and administration of taxation in the country.

    “There is no perfect document anywhere in the world, and so the new tax document can be amended when the need arises.

    “So, I urge Nigerians to support the proposed reform because it is a good omen for the nation,” he pleaded.

    Agbeluyi said that the two-day council meeting was also an avenue for the members to brainstorm on critical issues bordering on the tax regime in the country.

  • Africa Oil’s Nigeria Surge: Doubling Output and Reserves

    Africa Oil’s Nigeria Surge: Doubling Output and Reserves

    Canada’s Africa Oil Corporation (AOI.TO) is set to dramatically expand its footprint in Nigeria’s lucrative deep-water oil sector. The company’s impending acquisition of full ownership of Prime Oil, scheduled for completion next Tuesday, promises to double both its production output and proven reserves within the West African nation, a strategic move poised to reshape its operational landscape. This expansion marks a pivotal moment for Africa Oil, solidifying its position as a key player in the continent’s energy market.

    “On closing of that deal we will significantly change the scale of our business, we will double production, we double reserves and significantly boost our liquidity position,” stated Oliver Quinn, Chief Commercial Officer at Africa Oil, in an interview with Reuters. This bold assertion underscores the transformative nature of the acquisition, which will grant Africa Oil complete control over Prime Oil & Gas Coöperatief, a Dutch entity with substantial indirect stakes in Nigerian deep-water fields operated by industry giants TotalEnergies and Chevron.

    The implications of this deal extend beyond mere numerical increases. Upon completion, Africa Oil anticipates a production surge to approximately 35,000 barrels per day. Notably, these barrels are characterized by their “very low lifting cost of under $10, so the margin on the barrels is high and typically sell at premium to Brent,” as Quinn emphasized. This translates to a substantial boost in profitability, directly impacting the company’s financial health and its ability to reinvest in future projects.

    From an economic standpoint, this development is significant for Nigeria. Increased investment and production within the oil sector can contribute to economic growth, job creation, and revenue generation. However, it also raises questions about sustainability and the long-term impact on local communities. The dependence on oil revenues can create volatility, and it is crucial that these resources are managed responsibly to ensure equitable development.

    Looking ahead, Africa Oil, in collaboration with its partners, plans to initiate an infill drilling campaign this year to sustain output in its mid-life fields. This proactive approach demonstrates a commitment to maximizing the potential of existing assets while exploring new opportunities.

    Beyond Nigeria, Africa Oil maintains a presence in Equatorial Guinea and has a significant stake in Namibia’s promising Orange Basin, through its 40% share in Impact Oil and Gas, granting exposure to the Venus discovery. As reported, TotalEnergies, the operator, expects a final investment decision in 2026, potentially transforming Namibia into a major oil exporter by the turn of the decade. “Our focus is to add to the cash generation machine, which runs through the decade while on the backend Namibia Venus comes onstream and then we have significant growth in that asset,” Quinn explained.

    For the average reader, this news signifies more than just corporate expansion. It represents the intricate interplay between global energy markets and local economies. It highlights the continued importance of oil as a driving force in Africa’s development, while also underscoring the need for diversification and sustainable practices. As we observe these developments, it’s essential to consider the human element – the potential for economic empowerment, the need for environmental stewardship, and the long-term well-being of the communities affected.

  • CBN expresses commitment to FX Code

    CBN expresses commitment to FX Code

    The Central Bank of Nigeria,  CBN, yesterday, expressed its  commitment to the Nigerian Foreign Exchange (FX) Code saying that  it has aligned its roles with the principles of the code.

    In a statement signed by the  Governor, Olayemi Cardoso, Deputy Governor, Economic Policy, Mohammad   Abdullahi and   Director, Financial Markets Department, Dr.Omolara   Duke, the apex bank said its decision follows a review of FX Global Code and acknowledgement that the Code represents a set of principles generally recognised as good practice in the foreign exchange market (“FX Market”).

    The statement added: “The Bank confirms that it acts as a regulator to Market Participant as defined by the Code and it is committed to regulate FX Market activities in a manner consistent with the principles of the Code.

    “To this end, the Bank has taken appropriate steps, based on the size and complexity of the FX Market, and therefore aligns its roles with the principles of the Code.”

  • Coal mine threatens endangered black rhinos at Zimbabwe parks

    Coal mine threatens endangered black rhinos at Zimbabwe parks

    A proposed coal mining project in Zimbabwe’s Hwange Park, renowned for its safaris, poses a threat to its endangered black rhino population, the southern African country’s national parks management authority said Thursday.

    “The proposed mining project poses a significant threat” to the park’s Sinamatella Black Rhino Intensive Protection Zone, ZimParks said in a statement.

    It said it “urges” the Ministry of Mines and Mining Development to cancel the mining project “and never to entertain such applications in future.”

    ZimParks, tasked with ensuring the restoration of at least 30 per cent of degraded land, inland water and ecosystems by 2030, said the proposed development “will increase the risk of extinction of the species and the prospects for population recovery.”

    This critical habitat for black rhinos, where populations have been growing, is listed in international conventions on endangered species.

    Chinese firm Sunny Yi Feng has applied to prospect for coal in an area comprising more than 16,000 hectares less than eight kilometres (five miles) from the rhinos’ protected zone, the government’s official gazette dated February 14 said.

    ZimParks said, “The introduction of mining activities in this vital area would undermine ecological conditions essential for wildlife survival and reproduction.”

    The International Union for Conservation of Nature lists black rhinos as “endangered” with just over 6,400 worldwide as of last September, down one per cent on the previous year due to poaching.

    Hwange National Park is also home to 65,000 elephants, Africa’s second-largest concentration, and ZimParks said mining could interfere with the flow of groundwater, threatening vital water sources for local wildlife.

    A previous case involving another Chinese company, Tongmao Coal Company, at the same park led the Zimbabwean government to say in 2020 that it would ban mining in nature reserves.

  • FG restates commitment to reduce carbon emissions in industries

    FG restates commitment to reduce carbon emissions in industries

    The Federal Government has reiterated its commitment to reduce greenhouse gas and carbon emissions in the industrial landscape in the country.

    The Minister of Environment, Malam Balarabe Lawal, stated this at a stakeholders` engagement workshop on the National Industrial Decarbonisation Programme (NIDP) on Thursday in Abuja.

    Lawal, who was represented by Mr Mahmud Kambari, the Permanent Secretary, Federal Ministry of Environment, said the workshop aimed to transitioning the country’s industrial sector towards a low-carbon economy.

    He said that the engagement demonstrated government and stakeholders` collective commitment to a sustainable and environmentally responsible industrial sector in Nigeria.

    Lawal said that industrial activities played a significant role in driving economic growth, employment and national development.

    “However, they also contribute substantially to greenhouse gas emissions, leading to climate change and environmental degradation,” he said.

    The minister said that the inauguration of the NIDP marked a strategic step in Nigeria’s journey to achieving net- zero emissions.

    “Through this initial, we aim to facilitate the adoption of cleaner technologies, promote resource efficiency and support industries in transitioning towards low- carbon operations.

    ” On our part, the federal government, through the ministry of environment and it’s agencies, remain committed to creating an environment for industries to thrive sustainably,” he said.

    Also speaking, Dr Innocent Barikor, the Director- General, National Environmental Standards and Regulations Enforcement Agency (NESREA), said the event marked a pivotal moment toward a sustainable and resilient future for Nigeria.

    “The National Industrial Decarbonisation Programme represents our firm commitment to reducing greenhouse gas emissions and transitioning our industrial sector towards a low-carbon economy,” he said.

    Barikor said the initiative was in line with Nigeria’s international obligations under the Paris Agreement, as well as the country’s ambitious domestic target of achieving net zero emissions by 2060.

    “By adopting decarbonisation strategies and establishing a clear regulatory framework, we can significantly mitigate these emissions while simultaneously enhancing our competitiveness in international markets.

    “The road to industrial decarbonisation is challenging, but it is also filled with opportunities that promise to deliver long-term environmental and economic benefits.

    “By working together, we can ensure that our industries not only comply with global standards but also thrive in a low-carbon economy,” he said.

    Earlier, Rep. Garba Mohammed, Chairman, NESREA’s Governing Board, said that the event marked a significant milestone in Nigeria’s journey toward sustainable industrial development and environmental stewardship.

    He said that the initiative aimed to reducing greenhouse gas emissions, enhancing energy efficiency, and transitioning the country’s industries toward a greener future.

    “Our industrial sector is a cornerstone of Nigeria’s economy, yet it is also a significant source of carbon emissions.

    ” It is incumbent upon us as custodians of the environment to lead the charge in transforming industrial practices, adopting cleaner technologies, enhancing energy efficiency, and establishing robust mechanisms for compliance and carbon credit trading,” he said

  • LASG offers 15% discount on early 2025 land use payment

    LASG offers 15% discount on early 2025 land use payment

    The Lagos State Government has officially released the 2025 Land Use Charge (LUC) bill with 15 per cent discount for early payment.

    A statement signed by the Commissioner for Finance, Mr Abayomi Oluyomi, reaffirmed government’s commitment to continuous world-class infrastructure and service delivery to residents.

    The statement was made available to newsmen by Mr Adeleke Quadri, Director, Public Affairs, Ministry of Finance, on Thursday in Lagos.

    Oluyomi urged property owners across the state to take advantage of the 15 per cent discount on their Land Use Charge by making early payments before the deadline.

    While reiterating the importance of Land Use Charge payment, he said it was a crucial revenue source that enabled government to maintain and improve essential public infrastructure.

    He listed some of the infrastructure to include roads, healthcare facilities, schools and security enhancements.

    Oluyomi listed landmark projects funded through taxpayers’ contributions to include the Lagos Rail Mass Transit (LRMT).

    “Lagos State Governor, Babajide Olusola Sanwo-Olu, remains steadfast in his vision of building a safe, livable and globally competitive megacity.

    “His administration continues to implement policies that drive sustainable development, attract investments and elevate Lagos to the ranks of the world’s most advanced cities.

    “This is a call to action for all property owners to support the Lagos State vision by fulfilling your civic duty and paying your Land Use Charge promptly.

    “Doing so, shows that you are contributing directly to the growth and development of a greater Lagos that we can all be proud of,” he said.

    He urged property owners to pay, using convenient platforms including Internet banking, Bank Deposits, Mobile Payment- through USSD codes, POS available at LUC offices and Lagos Online Assistant-(LOLA -Whatsapp Robotic payment platform).

    He added that property owners could also visit walk-in centres listed on the back of their bills for any inquiries or complaints.

    Oluyomi urged all property owners to take advantage of the 15 per cent discount by paying early and playing their part in making Lagos a modern, thriving metropolis.

  • Naira Paradox: BDCs Hesitate as Parallel Market Dips Below Bank Rates

    Naira Paradox: BDCs Hesitate as Parallel Market Dips Below Bank Rates

    A curious twist has emerged in Nigeria’s foreign exchange market, leaving Bureau De Change (BDC) operators in a precarious position. The Association of Bureau De Change Operators of Nigeria (ABCON) reports that its members are now hesitant to purchase foreign exchange from banks, a direct consequence of the parallel market rate falling below the interbank proceeds sales to BDCs. This unexpected development, as articulated by ABCON President Aminu Gwadebe, underscores the delicate balance the Central Bank of Nigeria (CBN) seeks to maintain.

    “Currently, the naira has maintained its stability and appreciation in the foreign exchange market,” Gwadebe noted, reflecting the initial success of recent CBN policies. However, he also highlighted a significant anomaly: “What we are witnessing now is a situation where the parallel market rate is even trading lower than the interbank proceeds sales to BDCs.”

    This reversal, where the parallel market, historically known for its higher rates, now offers lower prices than banks, creates a financial disincentive for BDCs. “For instance, yesterday, while the banks are offering a weighted average of N1505/$, the parallel market levels were at N1503/$ which even makes the BDCs constrained to buy from the Banks,” Gwadebe explained.

    This situation raises critical questions about the sustainability of the naira’s recent gains. While the CBN’s policies aimed at converging official and parallel market rates have shown initial promise, the current divergence suggests a potential market correction or, perhaps, an overcorrection.

    Implications

    For everyday Nigerians, this fluctuation translates to uncertainty. Small businesses and individuals relying on foreign exchange for imports or travel face potential disruptions. The initial optimism surrounding the naira’s appreciation offered a glimmer of hope for reduced living costs, but the current volatility threatens to undermine that progress. As one might observe, the emotional weight of financial instability is palpable. The average citizen, striving to make ends meet, views these economic shifts with a mixture of hope and trepidation.

    Gwadebe’s call for the CBN to introduce “a prudential percentage on volumes of sales on diaspora remittances and portfolio investment proceeds by the banks to the BDC operators” is a strategic move to stabilize the market. This aims to ensure a consistent forex supply and curb speculative activities that can destabilize the naira. He also emphasizes the necessity of “continuing regulatory oversight on transparency of participants as regards the maximum margin on sales by the banks to the BDCs.”

    In essence, ABCON is advocating for a balanced approach: maintaining the naira’s strength while ensuring the BDCs can effectively play their role in the retail forex market. “The CBN should also not abandon the calibration of their intervention sales to the BDCs as the catalytic actor in the foreign exchange market to continue to back the naira strength,” Gwadebe stated.

    Furthermore, he acknowledges the broader economic context, commending “the fiscal authorities on their efforts to reduce the fiscal deficit.” He also calls for a “state of emergency on inflation,” recognizing that “alleviating the sufferings of many Nigerians” requires a holistic approach.

    The recent appreciation of the naira, driven in part by the CBN’s policy of allowing banks to sell forex directly to BDCs, has instilled a degree of confidence. According to earlier reports, “the BDC operators revealed that there is a lot of forex inflow coming into the interbank window with growing investors’ confidence and huge portfolio investments coming into the banks.”

    However, the current market anomaly underscores the need for continuous monitoring and adaptive policy adjustments. The CBN’s ability to navigate these complexities will be crucial in ensuring the long-term stability of the naira and fostering a resilient economy.

  • Oil price drops 20% to $67 per barrel

    Oil price drops 20% to $67 per barrel

    THE price of Bonny Light, Nigeria’s premium crude dropped further by 20 per cent to $67 per barrel from $84.02  per barrel on January  2025, fuelling fears over achievement of  Federal Government’s budget 2025 revenue target.

    The Budget 2025 is based on crude oil price benchmark of $75 per barrel, oil production of 2.06 million barrels per day, bpd and revenue target of N36.35 trillion with 56 per cent coming from oil sales.

    The fall in crude oil price represents a 10.7 per cent potential decline in FG’s oil revenue target, even as output, currently at 1.7 million bpd, remains significantly below the 2025 budget benchmark of 2.06 million bpd.

    In its data released yesterday, the U.S. Energy Information Administration attributed the market situation to rising inventories, which stood at 3.6 million barrels at end of February 2025 (last weekend).

    It was also attributed to the decision of Organisation of Petroleum Exporting Countries, popularly known as OPEC+ to unwind its production cuts starting in April 2025.

    In an interview with Vanguard yesterday, the Chief Executive Officer, Centre for the Promotion of Private Enterprise, CPPE, Dr Muda Yusuf, said the development has far-reaching implications for the nation’s 2025 budget in particular and economy in general.

    He stated: “This development has negative implications for the budget because our budget benchmark is $75 per barrel. Now, we are having oil price below $70 per barrel and the prognosis is that it may remain at this level or possibly even lower, especially if President Donald Trump is able to achieve a breakthrough with the peace deal between Ukraine and Russia.

    “It has implications for the budget from a revenue point of view. It also has implications from a foreign exchange point of view. These are the two major implications that it has as far as our economic management is concerned.

    “If we still stick to our expenditure profile, then it means that we’ll be looking at a much higher fiscal deficit than we have planned but that will not be advisable because deficits has a way of affecting macroeconomic stability.

    “This often have very strong systemic impact on us pay a heavy price for unstable macroeconomic environment. I think as we progress, we need to adjust our spending again, depending on what the revenue outlook. It is very important that we take all of this into account so that we don’t resort to an unnecessarily bloated deficit at the end of the day.

    “However, the good news about this is that it’s going to bring down energy prices and that is good for business. From a business point of view, particularly from the energy cost perspective, this is something that is a positive.”