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Inflation, Naira and Oil in Focus

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Lukman Otunuga
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By Lukman Otunuga is Senior Financial Market Analyst with FXTM

Some semblances of stability have returned to global markets after US recession fears created shockwaves last week.

Lukman Otunuga

Still, concerns over the health of the worlds largest economy linger with investors on high alert ahead of another busy week. With the US elections just months away, this negative development adds another layer of uncertainty. Much focus will be on the US CPI print, retail sales, and consumer confidence which are likely to shape expectations around how aggressively the Fed cuts rates.

Regarding the fourth largest economy in Africa, the man theme will be the latest CPI print. One of the key themes in Nigeria in 2024 has been runaway inflation which jumped to 34.2% in June – its highest level since 1996. However, the incoming CPI print is expected to show prices slowing in July, cooling to 33.2% compared to 34.2% in the previous month. Given the CBNs aggressive approach towards raising rates, signs of cooling price pressures will be a breath of fresh air for consumers. It is worth nothing that the Central Bank of Nigeria has raised rates by a whooping 800 basis points in 2024.

Looking beyond inflation, the next key event will be GDP published later this month. After expanding 3% in Q1, it will be interesting to see whether growth can be maintained in Q2. In the FX space, the Naira continues to gain against the dollar on the official exchange with the spot rate at N1589 as of Monday. 

Regarding oil, it has extended its first weekly gain since early July thanks to geopolitical tensions in the Middle East. Rising oil prices may have a positive knock-on effect for the economy, especially when factoring how a major chunk of revenues is acquired from oil sales. However, this could be cancelled out by the rising cost of fuel imports which is costing Nigeria $600 million per month.

Still, this is set to be another big week for the global commodity due to the monthly outlook from the International Energy Agency. Talking technicals, Brent has gained over 4% since the start of 2024 with prices trading above $80 as of writing. Key levels of interest can be found at $7, $82 and $82.80.


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General News

Researchers Develop Innovative Treatment for Malaria

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An international team of researchers have introduced a groundbreaking drug, known as the covalent kinase inhibitor, which shows promise in combating treatment-resistant malaria.

Researchers Develop Innovative Treatment for Malaria

Developed by chemists and bioscientists from the University of Glasgow, this innovative drug could surpass current medications by effectively targeting and disabling the proteins used by the Plasmodium falciparum parasite to replicate within the human body.

This is according to a report titled “Targeting Pf CLK3 with Covalent Inhibitors: A Novel Strategy for Malaria Treatment.”

The development, led by chemists and bioscientists from the University of Glasgow, was outlined in a November publication in the “Journal of Medicinal Chemistry.”

According to the researchers, covalent inhibitors form bonds with proteins, usually irreversibly modifying them, and this new drug could be more effective than current medications at all stages of malaria infection.

The new drug works by permanently disabling a protein that Plasmodium falciparum, one of the mosquito-borne parasites that spread malaria, uses to replicate itself inside the human body.

The drug also has the potential to work as a single-dose treatment, a significant improvement over existing therapies.

This breakthrough marks the first adaptation of an approach from cancer treatments to tackle malaria.

The team expressed optimism that the parasite is unlikely to develop resistance to the new drug, which targets the protein Pf CLK3 and disrupts the parasite’s ability to splice RNA.

The researchers, including Prof. Martins Emeje from the Nigerian Natural Medicines Development Agency and Prof. Oyewale Tomori from the West African Academy of Sciences, emphasise the importance of regular calibration and accreditation for medical laboratories to ensure accurate results and reliable treatment.

 

 


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Nigeria to Host ICEGOV 2025, A Milestone in Digital Governance and Global Leadership

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The Federal Ministry of Communications, Innovation & Digital Economy, Nigeria has been officially confirmed as the host country for the 2025 International Conference on Theory and Practice of Electronic Governance (ICEGOV) edition.

This confirmation by the United Nations University Operating Unit on Policy-Driven Electronic Governance (UNU-EGOV) marks a historic milestone in our nation’s digital transformation journey, showcasing Nigeria’s leadership in digital governance, innovation, and technological advancements on the global stage.

ICEGOV is a prestigious global conference that convenes governments, academia, international organisations, industry leaders, and civil society to exchange insights, research, and best practices in electronic governance.

Hosting this event presents a unique opportunity to strengthen Nigeria’s digital ecosystem, foster multidisciplinary collaborations, and drive policy innovations that will shape the future of governance in Africa and beyond.

Speaking on this momentous achievement, the Honourable Minister of Communications, Innovation & Digital Economy, Dr. ‘Bosun Tijani, stated: “Nigeria’s selection to host ICEGOV 2025 is a recognition of our efforts to drive digital transformation and innovation in governance.

“I am a firm believer in the importance of the academia and research in supporting global discussions on e-Governance and we have seen this in some of the input in government initiatives like the National AI Strategy and the National Digital Economy and e-Governance Bill which are laying the foundation for the growth of Nigeria’s Digital Economy.

“As we prepare to welcome you all to Nigeria, we look forward to very useful outcomes that will be beneficial for the growth of digital governance and policy development globally.”


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MTN Nigeria Foundation Supports Education with Donation of School Supplies to 1000+ Students

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MTN Nigeria Foundation recently embarked on an initiative to donate support materials to nominated schools in seven states across the six geopolitical zones, including Edo, Oyo, Katsina, Nasarawa, Bauchi, Anambra and Enugu.

Odunayo Sanya, Executive Secretary, MTN Foundation

The donations form part of the foundation’s Learning Support Materials Initiative (LSMI) aimed at improving learning experiences for students nationwide.

The MTNF Learning Support Material Initiative (LSMI) is a program created to empower students with essential academic tools, enabling them to reach their highest academic capabilities. Over 1000 students received vital resources such as school bags and exercise books, with the schools also receiving additional equipment like umbrellas and Wi-Fi routers to aid the implementation of technology in learning.

The initiative forms part of MTN Foundation’s broader commitment to youth empowerment and educational development in Nigeria. Over the years, the foundation has invested in education through several initiatives. These include the MTN Scholarship Scheme for science and technology students and blind scholars at the undergraduate level. Additionally, MTN Foundation’s Science and Technology Lab Project (STLP) has resulted in the refurbishment of 102 science laboratories in public secondary schools across the country.

Speaking on the Learning Support Material Initiative (LSMI) and the Foundation’s dedication to national development through education, Executive Director, MTN Foundation, Odunayo Sanya said “At MTN Nigeria Foundation, we believe that education is the cornerstone of growth and development, and all students deserve access to the resources necessary to unlock their full potential.

“This initiative emphasizes our commitment to fostering an enabling environment for learning and supporting access to quality education.”

The impact of these donations was evident and appreciated by students who expressed that the learning materials would aid their learning process and educators who affirmed that they would be put to good use.

This initiative demonstrates how corporate entities can play pivotal roles in supporting societal needs while promoting sustainable development within the communities they serve.

The Learning Support Materials Initiative by MTN Foundation highlights its unwavering dedication towards empowering young minds across Nigeria. Through strategic educational support programs, the foundation contributes to bridging resource gaps faced by several public institutions and shaping brighter futures nationwide.


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