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Nigeria Week Ahead: Naira, PMI’s and Inflation in Focus

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By Lukman Otunuga, Senior Research Analyst at FXTM

The past few weeks have not been kind to the Naira.

Foreign exchange shortages, rising inflation, and lower oil prices offered nothing but pain to the emerging market currency. Losses were accelerated by demand for foreign exchange currency’s outweighing any additional inflows from exporters. According to Bloomberg, the Naira spot rate is down over 4% against the dollar today, trading around N393.33 while on the parallel markets, the Naira has weakened to N480.

Given the list of negative themes threatening to sabotage Nigeria’s economic recovery, the outlook for the Naira remains clouded by uncertainty. According to Bloomberg estimates, prices are seen falling as much as 10% in 2021. Although authorities have threatened to halt the banking services of exporters in an effort to boost supplies of foreign exchange, the local currency remains under the mercy of multiple exchange rates and untamed inflation. The latest rise in the country’s short-term debt and a weaker Naira rate to sell Dollars to investors are likely to raise expectations around another devaluation, marking the third one in less than 12 months.

On the data front, all eyes will be on the manufacturing and non-manufacturing PMI figures for January. The Central Bank of Nigeria composite PMI for the manufacturing sector edged down to 49.6 in December of 2020 with markets forecasting a slight dip in January. For the non-manufacturing, the PMI is seen decreasing to 45.0 after hitting 45.7 in December. While these economic reports are significant and may offer insight into the health of Africa’s largest economy, all eyes will be on the OPEC monthly report and latest inflation figures.

Oil prices hit $60 per barrel this morning, levels not seen since February 2020. The commodity is deriving strength from renewed US fiscal hopes and optimism around global economic growth stimulating demand. The OPEC monthly report on Thursday could provide fresh insight into oils outlook, especially If the report signals a faster recovery in global demand. Given how a handsome chunk of Nigeria’s foreign exchange earnings and government revenues are sourced from oil sales, such an outcome may boost investor sentiment towards the country.

Let’s not forget about inflation. Inflationary pressures remain a thorn in the Central Bank of Nigeria’s side. In fact, untamed inflation has forced the central bank to leave interest rates unchanged at 11.5%. Consumer prices soared for a 16th straight month to 15.75% in December of 2020 – its highest rate since November 2017. Although the country’s borders have been re-opened to trade, inflation is still forecast to surpass 16% in January 2021.

Outside of Nigeria, it will be another busy week for global markets with earnings from the likes of Twitter, Uber & Disney, economic data from major economies and speeches by financial heavyweights in focus.


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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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Cloud Energy Solar Shines Bright with 200 Watts Street Lighting Bulb

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Nigeria’s foremost indigenous Renewable Energy Company, decorated by industry partners as the most Outstanding Energy Provider, Cloud Energy Solar, living true to its appellations, is focusing its renewable energy competencies beyond the home and office.

Cloud Energy has increased its impact in street lighting with the design and production of the 200 Watts street lighting bulb.

The 200 Watts bulb consolidates the reputation of brightness and long lasting for the Cloud Energy range of energy saving bulbs, in the homes and offices.

Spurred by the abundance of the sun, the Cloud Energy Solar Company seems challenged to never let the sun set. The Managing Director of Cloud Energy, Mr. Theophilus Nweke, launching the 200 Watts bulb observed that the times are dangerous in terms of security.

Therefore, the brilliance of the street lighting will eliminate all lurking shadows from the streets and security posts. It is an answer to a call to duty for all patriots to deploy their competencies to enhance national security.

The renewable energy boss said that citizens must be prepared to make sacrifice to give Nigeria its deserved place as the giant of Africa. These sacrifices can come from the kind of opportunities that OEMs give to Nigerians. For example, Cloud Energy, a leading solar practitioner is currently offering rooftop solar panels with a flexible payment plan up to two years or more.

Property owners can now design their buildings with solar panels on the roof and keep paying long after they have completed and moved into the houses.

This flexible payment consideration, the Cloud Energy Boss explains, extends to the entire range of Cloud Energy Solar products – Energy storage products, Inverters, Batteries; Lifestyle products, Fridges, Freezers, Fans Television sets, and solar accessories.

These offers are conveyed in a campaign entitled Bridge the Energy Gap, a clear departure from the traditional way of presenting offers in the market.

The bridge has been used as a symbol to convey a sense of professional support, assistance, and partnership.

The bridge beyond meaning a make-up for a shortfall also provides a thorough fare to the energy transition, without bottlenecks. It deletes all doubts and gives a sense of certainty for a transition.to Solar.

The bridge is the fact that Cloud Energy in partnership with its finance partners offers different kinds of payment plan to ensure a done deal, in electricity, without tears.

Cloud Energy, founded in 2015 has earned respect by installing Solar and Inverter systems for discerning clients, mainly academic, research institutions and multi-nationals across the nation.

In less than a decade Cloud Energy has foot prints in the Banking and Finance sector with ATM installations; Homes and Public buildings with Solar Systems; and is a viable partner to governments through the Rural Electrification Project.


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Airtel HR Director, Adebimpe Ayo-Elias Honoured as HR Leader of the Year

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The Director of Human Resources and Administration at Airtel Nigeria, Adebimpe Ayo-Elias, has been awarded as HR Leader of the Year at the 2024 HR People Magazine Awards, organized by Mapelwood Global Resource.

The award ceremony, held recently at the Lagos Oriental Hotel, celebrated the achievements of outstanding HR professionals across Nigeria who have contributed significantly to organizational success and workplace culture.

Speaking on the recognition, Carl Cruz, CEO of Airtel Nigeria, expressed immense pride in Ayo-Elias’s achievement, describing it as a milestone not only for her but also for the company.

“Adebimpe’s impact, dedication, and leadership extend well beyond Airtel, and this award is a well-deserved recognition of her influence in the HR field. We are incredibly proud of her accomplishments and look forward to her continued contributions to the industry,” he said.

Receiving the award, Adebimpe expressed gratitude for the honour, reiterating her commitment to advancing world-class HR practices within her organisation.

“I am deeply grateful for the opportunity to contribute positively to the lives of those we serve within and beyond the organization. Airtel Nigeria creates an environment that nurtures growth, encourages innovation, and prioritizes the well-being of every employee and as such, this award motivates me to continue championing these values,” she said.

This award reaffirms Airtel Nigeria’s commitment to developing and empowering talent, further establishing the company as a leading force in creating an impactful, forward-thinking workplace.


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Canada Orders TikTok to Shut Down Operations Amid National Security Concerns

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Canadian government has ordered TikTok to shut down its operations within Canada, directing the social media platform to close its offices in Toronto and Vancouver.

Despite the office closures, Canadian users will continue to have access to the app itself.

The decision was announced following a national security review led by the Canadian Security Intelligence Service (CSIS). Innovation Minister François-Philippe Champagne stated that TikTok’s activities posed a threat to national security, though he declined to provide specific details.

“We came to the conclusion that these activities… would be injurious to national security,” Champagne told CBC News, underscoring the seriousness of the government’s actions.

TikTok has voiced strong opposition to the order, vowing to challenge it in court. A spokesperson for TikTok argued that the closure will lead to significant job losses and stated, “Shutting down TikTok’s Canadian offices and destroying hundreds of well-paying local jobs is not in anyone’s best interest.”

The move follows Canada’s previous restrictions on TikTok, including a ban from government-issued devices in 2023 due to privacy and security concerns.

TikTok’s parent company, ByteDance, has faced similar scrutiny from the U.S. government, which has also considered further restrictions over national security concerns.

TikTok maintains that it will continue to serve Canadian users on its platform, allowing creators to connect and businesses to operate.

However, the dispute between TikTok and Canadian authorities signals ongoing tensions between governments and the app’s China-based parent company.


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