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Nigeria Week Ahead: CBN Rate Decision, Inflation & Oil in Focus

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By Lukman Otunuga, Senior Research Analyst at FXTM,

The combination of mounting geopolitical risk and Fed rate expectations rocked global financial markets last week. Volatility is likely to intensify over the next few days as investors not only focus on these key themes but top-tier economic reports from across the globe among other high-risk events.

In Nigeria, the CBN’s recent removal of FX restrictions on 43 items sparked some optimism as dollar supply surged. This development offered an opportunity for the Naira to fight and was also welcomed by the IMF which acknowledged the series of reforms aimed at fixing Nigeria’s economy.

Nevertheless, inflation remains piping hot in Africa’s largest economy while interest rates are currently at their highest levels since the monetary policy rate was adopted in 2006. It is worth keeping in mind that, the inflation menace continues to draw strength from the removal of fuel subsidies, devaluation of the official Naira and security issues in food production regions. Given how inflation is projected to jump in September to 27.1%, the CBN is likely to raise interest rates at its policy meeting this week for the fifth consecutive time. This vicious cycle of rising inflation and interest rates certainly presents a risk to Nigeria’s fragile economy. The question is whether the central bank will move ahead with a 25bp hike or opt for a larger move to tame inflation.

Volatile week ahead for USD?

Dollar volatility could be the name of the game this week due to key US economic data and speeches by a host of Fed officials.

After receiving a boost from stronger-than-expected US inflation data, dollar bulls could switch into higher gear if the incoming economic releases support the case for another Fed hike in 2023. The US Empire manufacturing will be in focus on Monday, with key US retail sales and industrial production figures published on Tuesday and US initial jobless claims on Thursday. These reports will be complemented by speeches from various Fed officials including Fed chair Jerome Powell.

If US economic data miss expectations and Fed officials reiterate their dovish remarks, this could hit the dollar as bets rise over the Fed pausing hikes for the rest of 2023. A strong set of economic releases may fuel speculation around the Fed raising rates one more time this year – boosting the dollar as a result.

Commodity Spotlight – Oil

Oil prices ended last week gaining over 7% thanks to mounting geopolitical risks.

The global commodity has the potential to extend gains due to escalating tensions in the Middle East, home to almost a third of global oil supply. Bulls are likely to draw additional strength from the U.S. tightening its sanctions against Russian crude exports. Supply concerns remain rife with growing concerns over the conflict between Israel and Hamas spreading through the region, resulting in major disruptions in an already tight market.

While oil is likely to remain supported by supply-side factors, the demand side of the equation may create headwinds down the road – especially when factoring global recession fears. Looking at the technical picture, Brent bulls have a steep hill to climb before heading anywhere near $100. But the daily close above $90 last Friday could be the first signs of bulls reclaiming lost territory.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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NAFDAC Dismisses False Claims of Approving ‘Lung-Cleansing Tea’

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National Agency for Food and Drug Administration and Control (NAFDAC) has refuted claims that it approved a herbal product marketed as “lung-cleansing tea” for smokers.

Mojisola Adeyeye, director-general of NAFDAC, in a statement on Saturday, December 14, clarified that the product, identified as Lungitox (Smokers Pride), was never approved and had its registration application rejected due to its unsubstantiated health claims.

“The attention of the National Agency for Food and Drug Administration and Control (NAFDAC) has been drawn to a misleading video circulating on social media, alleging that NAFDAC approved the registration of a herbal product claiming that ‘smoking is healthy’ when used with their product,” the statement read.

“NAFDAC wishes to categorically state that this claim is false and completely unfounded.

“The product in question—Lung Detox Tea or Lungitox (Smokers Pride) or any similar product—is NOT registered by NAFDAC.

The unscrupulous individual behind this product had applied for registration, but the application was outrightly rejected due to the unsubstantiated and dangerous claim that smoking could be made ‘healthy’ by consuming the product.”

NAFDAC reaffirmed its commitment to protecting public health and ensuring that only safe and scientifically validated products are approved.

“NAFDAC remains steadfast in its mandate to protect public health and ensure that only safe, effective, and scientifically substantiated products are approved.

“We condemn any attempt to mislead or endanger the public with false claims.

“The public is advised to disregard this video and report any suspicious claims or products to the Agency through our official channels.”

Adeyeye provided contact information for reporting such claims, urging Nigerians to remain vigilant.

“For further inquiries or reports, please contact NAFDAC via 0800-162-3322, email [email protected], or visit our website at www.nafdac.gov.ng.

NAFDAC will continue to take decisive action against any individual or entity attempting to violate public health standards.”

The agency reiterated its dedication to ensuring that all products in the Nigerian market meet the required safety and efficacy standards.


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Coalition Drags Reuben Abati, Arise TV to NBC over Anti-Igbo Remarks

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A coalition of media organisations, comprising the League of Public Affairs Analysts and South East Media Professionals Network, has called for disciplinary action against Arise TV and Dr. Reuben Abati, show host, over alleged inciting remarks against the Igbos.

Coalition Drags Reuben Abati, Arise TV to NBC over Anti-Igbo Remarks

This was contained in a formal petition to the National Broadcasting Commission (NBC), signed by Ambrose Igboke.

According to the group, Arise TV and Dr. Reuben Abati allegedly made a divisive comment against the South East and Igbos during a TV Breakfast Show on November 21, 2024.

Recall that during the November 21 Breakfast Show, Abati had said on Arise TV, “It is a shame that the same Igbos who are so industrious that they’re all over and they do well in other parts of Nigeria.

“You go there as a non-Igbo man to go and buy land, you’ll be told that you don’t belong, even as an in-law. These are the issues in my view.”

The journalist and former Presidential aid referred to an incident reportedly involving the former Minister of Information, T.O.S Benson, who sought to purchase land in Igbo land for his wife.

The anti-Igbo comment has resulted in criticism and outburst from different groups.

They argued in the petition that there are “concerns about remarks made by Dr. Abati, which perpetuated harmful stereotypes against the Igbo community.

“These statements have been further amplified by extremist groups like Lagospidia, exacerbating ethnic tensions in an already delicate socio political climate.”

The media professionals said, “Dr. Abati’s reference to the Igbo people in a broad, negative context risks inflaming ethnic tensions and promoting dangerous generalizations. This kind of action was what ignited the Rwandan genocide where the Hutu and Tutsi engaged in a fratricidal war of extermination. It all started with a radio

“His comments were quickly weaponized by groups known for anti-Igbo sentiments, fueling divisive narratives that undermine national unity.

“Dr. Abati’s hostile response to a colleague, Ms. Ojy Okpe, on the following day’s broadcast, demonstrated a troubling disregard for professional journalistic standards.

” The remarks and behavior constitute a breach of the Nigerian Broadcasting Code, which prohibits content that incites division or promotes hate speech.”

The petitioners called for a thorough review of Abati’s remarks and the editorial lapses that allowed such conduct to air.


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NCAA Educates Passengers on Travel Challenges and Solutions

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Nigeria Civil Aviation Authority (NCAA) has called on aviation passengers to become more informed about the challenges they may encounter while traveling through airports.

This appeal was made by the NCAA Head of Consumer Protection, Michael Achimugu, during a road walk in Port Harcourt, the Rivers State capital, on Saturday, December 7.

He highlighted the importance of passenger awareness, especially during the heavy travel season, and emphasized the need for proper sensitization regarding flight delays and possible solutions.

“We’re now in the high travel season in aviation and as you know there’s been a lot of flight disruptions as well as a lot of complaints,” Achimugu said.

“Our duty at NCAA is to sensitize our passengers because most of the time when complaints come about these disruptions, it comes from a place of poor knowledge about their rights and responsibilities as air passengers. We must protect both the passenger and the airline,” he added.

The NCAA continues to engage in efforts to educate passengers and address concerns during this busy travel period.


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