E-Financial
Nigeria Marches into Q3 with A Mission to Stabilize
Lukman Otunuga, Research Analyst at FXTM writes: It’s quite interesting how, despite several months of disappointing domestic data and ongoing recessionary woes, Nigeria remains resilient, with the nation on a mission to stabilize by the end of 2017.
Although this year has dished out a myriad of trials ranging from internal concerns, external shocks and falling oil prices, the macro fundamentals of the largest economy in Africa continue to stabilize with a recent string of positive data verifying this statement.
The subtle signs of recovery can already be seen across GDP, inflation, FX and even the balance of trade, all of which should support the growing confidence over the nation’s health. As we enter the third quarter of 2017, foreign investors will be watching Nigeria closely to see whether the country is able to maintain the current momentum and ultimately break away from its recessionary chains.
Nigeria’s persistent inflation concerns eased slightly in June following reports that the rate of inflation declined for the fourth consecutive month in May to 16.25%, the lowest figure for the year so far.
This continued price stability has played a crucial role in boosting foreign investor risk sentiment towards the nation and has also heavily supported the Nigerian Stock Exchange (NSE).
With the Consumer Price Index visibly cooling, the Central Bank of Nigeria should have some breathing room to cut interest rates in the future and consequently boost business confidence, ultimately supporting further growth.
Although disappointment initially flooded the Nigerian markets a few months ago following a soft first quarter GDP growth of -0.52%, it must be kept in mind that this was actually the best GDP performance seen for four quarters.
With a variety of non-oil sectors in Nigeria ranging from manufacturing to agriculture and transportation already turning positive, the overall outlook is very encouraging with the impact potentially being felt in the second, third and final quarters of 2017.
Economic growth for the second quarter of 2017 is speculated to hit 1.3%; if this is confirmed, then Nigeria will have officially broken away from recession after five quarters of decline. Such a scenario will be highly beneficial for the nation as a display of stability will magnetize foreign investors.
Speaking of foreign investments, the MSCI’s recent decision to delay a potential removal of the MSCI Nigeria Index until this November should further support confidence and sentiment towards the nation.
It is highly likely that the stabilizing economic environment and noticeable improvement in liquidity across major market segments played a key role in MSCI’s decision to re-evaluate Nigeria’s position in its Index.
With the internal investment community displaying optimism over Nigeria’s medium to longer term outlook, there is a likelihood that MSCI will keep Nigeria on its Frontier Index. While positive signs are already visible with Nigeria’s weighing on the MSCI Frontier rising, the threat of MSCI removing the nation could still negatively impact its current recovery.
The Central Bank of Nigeria should find itself in the spotlight in the second half of 2017 as investors wait to see whether interest rates will be hiked or trimmed.
Although the Central Bank may be commended on its logical decision to maintain key interest rates at 14% as the nation recovered some ground and continued its quest to diversification beyond oil exports, it may be time to make a move.
With inflation cooling, data improving and the Naira supported on the parallel markets, a potential interest rate cut to 12% could be on the cards.
While the seeds of diversification have already been planted, Nigeria still remains vulnerable to falling oil in the short to medium term. A sharp and sustained depreciation of oil not only presents a serious threat to the implementation of the approved 2017 budget but also to the Naira’s current stability.
It must be understood that oil prices directly impact Nigeria’s foreign external reserves and a drop in the commodity will most likely reduce Dollar supplies, consequently impacting the stability of the Naira Exchange.
Instability in the Naira exchange will not only punish Nigerians but would also repel foreign investors. With oil prices officially in a bear market, this should be the green lights for Nigeria to switch up gears on the quest to diversification.
Focusing on the Naira, the currency currently trades around 365 against the Dollar as the CBN repeatedly injects Dollars into the foreign exchange markets to maintain liquidity. While this method has boosted sentiment towards Nigeria and created stability, questions should be raised of this strategy’s sustainability.
As discussed earlier, falling oil prices have the ability to create instability in the Nigerian foreign exchange and such should not be the case.
The multiple exchanges is still an issue lingering in the background that the Central Bank must strive to rectify while allowing the natural forces of supply and demand to determine the true value of the Naira.
All in all, the sentiment towards the Nigerian economy is taking a turn for the better as the economy continues to improve.
Much attention will be directed towards MSCI’s decision of Nigeria’s Index and the pending GDP report for Q2 which should provide further insight as to how the nation has fared so far this year.
While external risks such as higher US interest rates and falling oil may enforce some downside pressures, the nation should prove resilient as it continues its ongoing quest to diversifying and achieving a stable macroeconomic climate.
The sixteenth season of DiamondXtra, a savings and reward account where customers of Access Bank are rewarded with several prizes, have been unveiled in Lagos.
L – R : Doris Okpara, Product Manager, DiamondXtra; Ngozi Igboanugo, Regional sales Manager Festac 1&2 & mainland Access Bank; Bolarinwa Animashaun, Regional Sales Director Lagos 2 Access Bank ; Emeka Ezikeugo, Diamondxtra N200,000 Onsite winner; and Adaeze Ume, Head Consumer liabilities, Access Bank during the launch of Diamondxtra Season 16 held at Alaba International Market Lagos yesterday.
The Season 16th of the special interest yielding hybrid account which allows deposit of both cash and third-party cheques has been upgraded as customers will win prizes to the value of N200 million and three SUVs, amongs other mouthwatering prizes.
Speaking at the unveiling in Alaba International Market, Lagos, Mr Bolarinwa Animashaun, regional sales director, Lagos, said the new season will bring more goodies to the customers as the bank has taken their interest at heart.
“In the last fifteen years, we have been able to ensure customer loyalty, reward committed customers over time and show that we are a bank that is ready to empower people and partner with people.
“If I take it into specific figures, we have rewarded 26,696 customers and we’ve given a total sum of N6.5 billion over the period.
This Season16is interesting, because, we have seen a lot of opportunities to expand into digital opportunities and this time around, we will be rewarding 15,786 customers, and 10,000 of them will be digitally rewarded.
“This is almost half of what we have done over the last 15 years. So that is what is making it special. We have takenit into the possibilities of how technology can expand our business and reward customers”.
The draws for the new season are going to be the same like the previous ones as it will be held in different regions.
“So, we start from the monthly draws, quarterly draws and the annual draws. What makes it extremely interesting this year is that we will be rewarding with up to N200 million in prizes and we have added some very interesting gifts. We will be given out three SUVs as part of the N200 million price for this year”, Animashaun added.
At the unveiling, Access Bank conducted onsite draws where 48 customers who have DiamondXtra accounts and were present at the unveiling won cash prizes ranging from N20,000 to N200,000.
Breakdown shows 40 customers won N20,000 each, five customers won N50,000, two customers won N100,000, while one customer went home with N200,000.
Among winners of the N20,000 prize was Mr Victor Edobor, who said he opened the DiamondXtra accounts 24-hours before the draws.
One of the two winners of the N100,000 prize, Mrs. Maureen Nneka Oforka, said she was surprised to have won at the well-attended event as that was her first time winning any prize.
She said, “I have never won any prize in my life. This is my first. I came here reluctantly and thank God, I am here and I am a winner of N100,000 which has already been paid into my account.
The grand prize winner of N200,000, Mr. Emeka Ezikeugo, a trader in Alaba, said. “I will forever be grateful to Access Bank for the prize as I was not expecting it. I thank the bank for showing leadership among its peers”.
To be part of the winning train and qualify for the DiamondXtra season 16 which is open to both new and existing customers, new customers are required to open a DiamondXtra savings account with just N5,000 by dialling *901*5# or walking into one of our branches to open the account.
However, the more multiples of N5,000 both new and old customers save, the higher their chances of winning at the monthly, quarterly and annual draws.
DiamondXtra is an interest yielding hybrid account which allows deposit of both cash and third party cheques. Hybrid means a combination of both savings and current account features. The DiamondXtra reward scheme has given away over N6.5 billion in cash and household items to over 15,000 loyal customers over the last 15years. Please click HERE to learn more.
Recognising the underrepresentation of women in the technology sector, Lafarge Africa Plc, has launched the Girls in Tech Program, a pioneering initiative aimed at empowering young women in technology.
Meticulously crafted to bridge the gender gap in tech and empower 10 young females between the ages of 18-25 years from Lafarge Africa Host communities in Cross River State, the program is poised to make a significant impact in the region.
The Girls in Tech Program seeks to harness the unique talents of these young women and introduce them to the dynamic world of technology. By providing them with essential skills and opportunities, the initiative aspires to equip them to become self-reliant as well as problem solvers in society.
In collaboration with Aptech and Arena Multimedia,globally recognized leaders in technology incubation and opportunity, as well as The Bridge Leadership Foundation, the boot camp promises to be a transformative experience for the participating girls, who are eager to make their mark in the tech industry.
Speaking during the onboarding to flag-off in Calabar recently, the Plant Manager, Lafarge Africa Plc, Sotirios Valsamakis, who was represented by the Human Resources Business Partner, Lafarge Africa Plc; Barong Ita, revealed that the program was in line with the company’s commitment to diversity and inclusion.
She also added that the initiative is designed to ignite a spark of inspiration, hope, and possibilities in the heart of the selected girls across the host communities.
“As an organization, people are an integral part of our sustainability drive, and we are invested in building lasting progress by empowering members of our host communities. We also recognize the need for greater and greener diversity and inclusivity within the tech sector.”
Today’s event is not just about launching a program. It is about igniting a spark of inspiration, hope, and possibilities in the hearts of these young women. It is about challenging stereotypes.”
Also speaking at the event, the Cross Rivers State Commissioner for Science, Innovation & Technology, Justin Beshel represented by Edwin Adie, Technical Senior Advisor, Cross Rivers State Ministry of Science & Technology commended Lafarge Africa for the initiative adding that it is in line with the State government’s plan towards science, technology and innovation development.
As the country faces economic challenges, the need for adaptive strategies in the fintech industry becomes paramount. In line with this, leading Fintech startup, Hydrogen Payment Services Limited (‘Hydrogen’), has teamed up with Co-creation Hub (‘CcHub’) to host an insightful event themed, ‘Adapting Fintech Business Models to Economic Climes’.
The event, set to take place on Thursday, April 18, 2024, from 12:00 WAT at the CcHub office in Sabo, Lagos, will delve deep into the intricacies of Nigeria’s economic challenges and how these influence the fintech ecosystem.
Participants will gain actionable insights on how to adapt fintech business models to volatile economic conditions by prioritising flexibility, agility, and customer-centricity.
This collaboration underscores the shared commitment of both entities to empower aspiring founders venturing into the Fintech space amidst economic uncertainties.
By leveraging their respective expertise and resources, Hydrogen and CcHub aim to equip emerging entrepreneurs with the knowledge, tools, and support needed to thrive in today’s dynamic economic conditions.
Emeka Awagu, Chief Technology Officer at Hydrogen, commented on the strategic partnership with CcHUB: “Our alliance with CcHUB amplifies our shared commitment to pioneering transformative solutions in Nigeria’s fintech sector.
“By leveraging Hydrogen’s technological expertise alongside CcHUB’s innovative approach, we are primed to set a new standard for fintech excellence and drive impactful change across the industry.”
The event will feature a distinguished panel of industry experts and thought leaders, including, Ina Alogwu, Group Director, Digital Transformation, ARM HoldCo; Emeka Awagu, Chief Technology Officer, Hydrogen, and Miracle Ezechi, Digital Marketing Manager, Hydrogen.
The panel discussion will be moderated to encourage an engaging and insightful conversation on the strategies and innovations required to thrive in Nigeria’s Fintech landscape amidst economic challenges.
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