Finance

Nigeria’s GDP growth slows in Q2, Dollar slips

Published

6 years ago

August 30, 2018

Lukman Otunuga, Research Analyst at FXTM, comments on Nigeria’s GDP growth slows in Q2, Dollar slips

Confidence over the health of the largest economy in Africa was dealt a blow after economic growth decelerated in the second quarter of 2018.

Nigeria’s GDP disappointed in Q2 by slowing to 1.5% from the 1.95% achieved in the first quarter of 2018.

Although growth during the second quarter was mainly driven by the services sector and higher than when compared to Q2 of 2017, this did little to shake off jitters over the growth outlook.

With uncertainty likely to heighten ahead of Nigeria’s presidential elections, and US-China trade tensions still impacting global sentiment, Nigeria remains exposed to downside risks.

If inflation starts to rebound amid election spending, the Central Bank of Nigeria could be forced to maintain status quo on interest rates for the rest of this quarter.

Market sentiment boosted by Nafta breakthrough

A renewed sense of positivity and optimism continues to be felt across financial markets after the United States and Mexico reached a breakthrough deal over the NAFTA trade agreement.

This highly encouraging development may ease trade war fears, elevate global sentiment and stimulate appetite for riskier assets.

Although it remains uncertain whether Canada will join the agreement, there is an expectation that the nation agrees to the new terms in an effort to conserve the three-nation pact.

Speaking of risk, Asian stocks closed mostly positive this morning while European markets edged higher as optimism over a trade deal between the US and Mexico boosted investor confidence.

With Wall Street powering to record highs yesterday, US equity bulls could make another appearance this afternoon amid the risk-on sentiment.

Is the party coming to an end for Dollar bulls?

Dollar bulls were missing in action yet again today as investors digested Jerome Powell’s dovish speech at the Jackson Hole Symposium last Friday.

The Greenback’s continued depreciation in recent weeks has raised questions on whether the impressive bull run could be coming to an end. Buying sentiment towards the Dollar was dealt the first blow following Donald Trump’s latest criticism of the Federal Reserve.

Bears were offered another opportunity to attack after the minutes from August’s Fed policy meeting raised concerns over escalating trade tensions negatively impacting growth. With reports of the United States and Mexico securing a trade deal dimming the Dollar’s safe-haven appeal, further losses could be witnessed in the near term.

Although market expectations remain elevated over the Federal Reserve raising interest rates next month and possibly December, the Dollar may need fresh inspiration to rebound higher.

As regards the technical picture on the daily charts, the Dollar Index has been relentlessly pounded by sellers in recent weeks with prices trading around 96.65 as of writing. A solid breakdown below the 96.50 level could encourage a decline towards 94.20 and 94.00, respectively.

Commodity spotlight – Gold

Gold prices edged to a fresh two week high on Tuesday thanks mostly to a depreciating US Dollar.

The fact that the yellow metal continues to appreciate despite global risk sentiment boosted by the US-Mexico trade breakthrough just further highlights how Gold remains heavily influenced by the Dollar.

With the Greenback likely to experience further weakness following Powell’s dovish speech at the Jackson Hole Symposium, Gold has scope to appreciate further.

Technical traders will continue to closely observe how prices behave above the $1200 psychological level. Repeated Dollar weakness could send prices towards $1216 and $1230, respectively.

For bears to jump back into the game, prices need to break back below the $1200 level.

Finance

EFCC Chairman Tasks Nigerian Youths Against Crimes And Fraudulent Acts

Published

2 days ago

May 4, 2024

Alice Ginika Simon

The Chairman of Economic Finance Crime Commission (EFCC), Ola Olukoyede, has stressed the need for Nigerian Youth to see themselves as agents of positive change that have a lot to contribute to the socioeconomic development of the Nation.

Speaking at the 2nd edition of a Leadership Trainings Programme in Abuja, Olukoyede, who was represented by the Head Enlightenment and Re-orientation unit, (EFCC), Aisha Mohammed, said the commission’s dream is to see the youth contribute meaningfully to the society, emphasizing on the need to work together in bringing positive change to society.

The Economic and Financial Crimes Commission Boss declared the readiness of his agency to work with all Stakeholders, including the youth towards changing the narrative and reposition the country to greater exploit.
Also speaking, the representative of the Executive Secretary of Tertiary Education Trust Fund (TETFUND), Sonny Echono, appealed to the youths is to eschew social vices that could deter their full potential in life.

Other speakers at the event, including the Chairperson, Zero Tolerance for Social Immoralities Initiative (ZEITI) Africa, Rasak Jeje called on all stakeholders to join hands in collective pursuit of empowering new generation of leaders to curb the rising tides of social Vice among Nigerian youths.

The Chairperson, Zero Tolerance for Social Immoralities Initiative (ZEITI) Africa, Rasak Jeje made the call while addressing journalists at the 2nd edition of it Leadership Trainings Programme in Abuja on Thursday.
He said the training was aimed to intimate students leaders with knowledge and insights that will help them drive positive change and become exemplary leaders in their respective spheres.

Finance

AISA Has Refunded The Fees Paid By Yahaya Bello To EFCC

Published

1 week ago

April 27, 2024

Alice Ginika Simon

The Economic and Financial Crimes Commission (EFCC) says the American International School Abuja (AISA) has refunded the fees paid by the immediate past governor of Kogi state, Yahaya Bello, for his children attending the school.

In response to a letter addressed to the Lagos zonal commander of the EFCC, the school said $845,852 was paid in tuition “since the 7th of September 2021 to date”.

AISA said the sum to be refunded is $760,910 because it had deducted educational services already rendered.

“Please forward to us an official written request, with the authentic banking details of the EFCC, for the refund of the above-mentioned funds as previously indicated as part of your investigation into the alleged money laundering activities by the Bello family.

Since the 7th September 2021 to date, $845,852.84 (Eight Hundred and Forty-Five Thousand, Eight Hundred and Fifty Two US Dollars and eighty four cents) in tuition and other fees has been deposited into our Bank account.

We have calculated the net amount to be transferred and refunded to the State, after deducting the educational services rendered as $760,910.84. (Seven Hundred and Sixty Thousand, Nine Hundred and Ten US Dollars and Eighty Four cents).

No further additional fees are expected in respect of tuition as the students’ fees have now been settled until they graduate from ASIA.”

In a chat with The Cable, the spokesperson of the EFCC, Dele Oyewale, confirmed that the school has refunded the money.

‘’The money has been paid into public account,” Dele Oyewale was quoted as saying

Finance

Godwin Emefiele Disobeyed Direction Of Law With Intent To Harm The Public, He Printed ₦684.5M Using ₦18.9B Says EFCC in fresh charge

Published

2 weeks ago

April 23, 2024

Alice Ginika Simon

The Economic and Financial Crimes Commission has filed a fresh charge at the High Court of the Federal Capital Territory against the embattled former governor of the Central Bank of Nigeria, Godwin Emefiele.

EFCC in the charge accused Emefiele of approving the printing of N684,590,000 at the rate of N18.96 billion.

EFCC also alleged that Emefiele broke the law with intent to harm the public during his implementation of the naira swap policy of the administration of former President Muhammadu Buhari.

The anti-graft agency also accused Emefiele of unlawfully approving the withdrawal of N124.8 billion from the Consolidated Revenue Fund of the Federation.

EFCC’s top prosecutor, Rotimi Oyedepo, SAN revealed that Emefiele will be arraigned on a new four-count charge before Justice Hamza Muazu

Counts one to four of the charge, read,

“STATEMENT OF OFFENCE: Public Servant disobeying direction of law with intent to cause injury to the public contrary to and punishable under Section 123 of the Penal Code Law, Cap. 89 Laws of the Federation, 1990.

“PARTICULARS OF THE OFFENCE: That you GODWIN IFEANYI EMEFIELE between the 19th day of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the CBN Act, 2007, by approving the printing of N375,520,000.00 pieces of colour swapped N1, 000, at the total cost of N11,052, 068,062 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.”

This and three other charges were stated against him. They read;

“COUNT 2: “That you, GODWIN IFEANYI EMEFIELE, between the 19th of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the Central Bank of Nigeria Act, 2007, by approving the printing of 172,000,000 pieces of colour swapped N500 (Five Hundred Naira) Notes, at the total cost of N4, 471,066,040 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.

“COUNT 3: “That you GODWIN IFEANYI EMEFIELE between the 19th day of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the CBN Act, 2007, by approving the printing of 137,070,000 pieces of colour swapped N200 (Two Hundred Naira) Note, at the total cost of N3, 441, 005, 280 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.”

“COUNT 4: “That you, GODWIN IFEANYI EMEFIELE, on or about the 7th day of October 2020, in Abuja, within the jurisdiction of this Honorable Court, knowingly disobeyed the direction of Section 80 of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended), by approving the withdrawal of the total sum of N124, 860, 227, 865.16 from the Consolidated Revenue Fund of the Federation in a manner not prescribed by the National Assembly, which conduct of yours caused injury to the public and you thereby committed an offence.”