General News
NSE Index Dips, Oil Wobbles while Dollar Smiles
By Lukman Otunuga, Senior Research Analyst at FXTM,
One of the biggest losers was Royal Exchange Plc which declined 10% to trade around 0.27 Naira as of writing. Given the ongoing uncertainty presented by COVID-19, and recent depreciation in Oil prices primarily fueled by signs of the coronavirus fallout weighing on the energy sector, appetite towards local stocks may remain muted.
South Africa publishes shocking GDP data
Words fail to describe South Africa’s shocking and surreal gross domestic product data for Q2.
Economic growth contracted by a heart-stopping 51% q/q during the second quarter of 2020 thanks to the impacts of lockdown restrictions since the end of March 2020. This is the steepest decline since 1990 and raises concerns over the outlook for Africa’s most industrialized nation. It must be kept in mind that South Africa was already in a vulnerable situation before the coronavirus menace sunk its poisonous fangs into core services and sectors. The negative impacts continue to be reflected in economic data, as the country struggles to nurse deep wounds inflicted from tough lockdowns and rising coronavirus cases.
Expectations are set to mount over the South African Central Bank cutting interest rates for the sixth time this year to jumpstart economic growth. Given how inflationary pressures remain muted with consumer prices around 3.2%, this offers the SARB enough breathing room pull the rate cut trigger potentially in September or November. The key question is whether lower interest will breathe life into an economy entangled in a fierce battle against multiple risks. As of now, South Africa is predicted to experience its worst economic contraction since the Great Depression in the 1930s.
Despite all of this negativity, the Rand is standing tall against the Dollar and other G10 currencies today. It has even appreciated across the board since the start of September and has offered a mixed performance across the FX space quarter-to-date.
The South African Rand remains influenced by external drivers in the form of COVID-19 developments, US-China trade and global sentiment. If the market mood improves this week and investors able to shake concerns over possible a delay in the COVID-19 vaccine, this may bode well for the Rand.
Dollar bulls stage a comeback
After being badly mistreated by G10, Asian and Emerging market currencies over the past few months, the Dollar has had enough.
The former king of the currency markets is on a mission to reclaim dominance, appreciating across the board after a sell-off in stock markets prompted investors to rush towards safe-haven destinations. Dollar bulls seem to be deriving strength from not only concerns over a possible delay in the Covid-19 vaccine but the recent U.S jobs report showing a decline in the U.S unemployment rate and jump in U.S Treasury yields.
With the Dollar Index trading at levels not seen in four weeks around 96.30 and appreciating over 1.5% since the start of September, are bulls back in the game?
Looking at the technical picture, a rebound may be on the cards on the weekly timeframe following the solid move above 93.00. A weekly close beyond this point could suggest an incline towards 94.00 and 96.00 in the medium term. If 94.00 proves to be reliable resistance, the DXY may find itself sinking back towards 93.00 and 91.15.
On the daily timeframe, prices remain in a wide range with support at 92.20 and resistance around 94.00. A daily close above 94.00 could inject bulls with enough inspiration to target 94.65 which then opens the doors towards 93.00 and beyond.
The question on the mind of many investors is whether the Dollar is able to maintain this current burst of confidence and majesty across the FX space. Although the currency is still considered as a safe-haven currency and the worlds reserve currency, it has weakened against every single G10 currency this quarter.
Negative themes in the form of rising coronavirus cases in the United States and political uncertainty ahead of Novembers presidential election may limit the Dollar’s upside gains. Given the fundamental forces influencing the Dollar’s longer-term outlook, prices still have the potential to decline with a move below 92.00 on the monthly timeframe acting as an early signal.
The Nigeria Civil Aviation Authority has ordered all international airlines flying into Nigeria to enforce the $10,000 currency declaration rule.
The authority said the rule is required for passengers to declare cash or negotiable instruments above the limit, as part of efforts to strengthen anti-money laundering compliance.
According to the NCAA, the directive, referenced as NCAA/CPD/ABV/298, dated 24 April 2025 seeks to address gaps in the enforcement of existing currency declaration obligations for inbound passengers.
This was announced in a statement issued by the Director of Public Affairs and Consumer Protection, Michael Achimugu, via his official X account on Tuesday.
“International carriers must take two key actions, which include “Make inflight or pre-landing announcements informing passengers of their legal obligation to declare any currency or Bearer Negotiable Instruments exceeding $10,000 USD or its equivalent upon arrival in Nigeria.
“Distribute currency declaration forms onboard for passengers to complete before landing. The NCAA has received reports indicating that some airlines are yet to comply with this directive”, the statement read.
The NCAA said these requirements are consistent with international best practices and are vital to preventing the illegal movement of large sums of money across borders.
The Authority warned that full cooperation from international airlines is essential, saying, “Please note that the cooperation of all international airlines operating in Nigeria is critical to supporting the country’s efforts to align with global financial standards.”
Accordingly, the authority emphasised that full implementation of this directive, particularly as it concerns inbound passenger declarations, is of utmost importance.
“Compliance will be closely monitored, and non-compliant airlines will face appropriate sanctions,” it added.
The court of appeal in Lagos has asked the Corporate Affairs Commission (CAC) to revoke the certificate of registration of “KPMG Professional Services”.
In a unanimous decision delivered on Thursday, the appellant court granted the reliefs sought by KPMG Nigeria against CAC and KPMG Professional Services.
The judgment was read by Abdullahi Mahmud Bayero, the judge.
The two other judges are Abimbola Obaseki-Adejumo and A.M. Talba.
In 2002, KPMG Professional Services was registered as a company with CAC despite the existence of KPMG Nigeria, comprising its audit, tax, and consulting arms.
The KPMG Nigeria has long been registered in Nigeria before 2002.
KPMG Audit was registered in 1969, KPMG Tax Consultants in 1990, and KPMG Consulting in 1969.
Displeased with the registration of KPMG Professional Services, KPMG Nigeria approached the federal high court.
The consulting firm had argued that the name “KPMG Professional Services” was deceptively similar to its long-established identity.
In 2005, the lower court dismissed KPMG Nigeria’s case, citing an alleged merger between KPMG Nigeria and Akintola Williams Deloitte as reason the company could no longer assert rights to the name.
The lower upheld the second respondent’s (KPMG Professional Services) counterclaim and ordered that KPMG Nigeria’s name be struck off the CAC register.
The lower court had premised its decision on newspaper articles stating that KPMG Nigeria reportedly merged with Akintola Williams Deloitte.
Delivering the judgment, Bayero ruled that the lower court erred by relying on newspaper articles to ascertain that KPMG Nigeria allegedly merged with another company.
The judge said the documents showing the alleged merger were not presented before the lower court, and the form of the alleged merger could not have been known.
“In any event, the only branch of KPMG, if any, that entered into a merger with Akintola Williams as stated in the newspaper articles 18, is KPMG Audit,” the judge ruled.
“The other spheres were totally unaffected. It would therefore be wrong to state that the merger (which has not been shown to this Court) of KPMG Audit with Akintola Williams means all the other areas of business, including KPMG Consulting and KPMG Tax Consultants, also ceased to exist.
“Even if the Appellants (KPMG Nigeria) had ceased to do business as the Court seemed to have held, the 2nd Respondents (KPMG Professional Services) should not have been carrying on business until the Appellant’s certificate of registration is withdrawn or set aside.
“They cannot use the name until the Appellant’s certification of registration is withdrawn or set aside. They cannot use the name until the name is removed from the 1st Respondent’s (CAC) Register of Names.
“The 1st Respondents can only assign the name to the 2nd Respondents after first taking it away from the Appellants.”
The court ruled that CAC erred by registering KPMG Professional Services despite the existence of a business name, which is already registered.
The judge reversed the earlier ruling of the lower court and reaffirmed the primacy of statutory protection for existing business names under Nigerian corporate law.
Air Peace has announced the launch of direct flights from Abuja to London Heathrow and Gatwick airports, with operations scheduled to begin on October 26, 2025.
The airline said in a statement on Sunday that round-trip fares for the Abuja–London service will start from N1m, making it the first Nigerian carrier to offer direct connections from the capital to both of London’s major international airports. This was contained in a press release issued on Sunday by the airline’s spokesperson, Efe Osifo-Whiskey.
“Direct international flight services from Abuja to both London Heathrow and London Gatwick Airports, effective October 26, 2025.
“Air Peace becomes the first Nigerian carrier to offer direct services from Abuja to both of London’s major international airports, further solidifying its role as a leader in regional and intercontinental aviation.
“Travellers originating from any of Air Peace’s domestic destinations across Nigeria can now book through fares via Abuja to either Heathrow or Gatwick using a single ticket, eliminating the need for multiple bookings or baggage re-checks,” the statement read.
Similarly, the new route opens convenient access for inbound passengers from the UK to cities across Nigeria.
“Travellers from London can access multiple destinations across Nigeria using a single Air Peace ticket through Abuja every morning. These destinations are Lagos, Port Harcourt, Enugu, Benin, Warri, Owerri, Kano, Yola, Gombe and Asaba, for now. Other destinations will be added later,” Osifo-Whiskey stated.
Air Peace is also offering what it describes as unprecedented value in pricing and service.
Osifo-Whiskey said, “It provides a distinct competitive advantage, enabling passengers to travel between Nigeria and the United Kingdom with greater ease, efficiency, and value, due to the possibility of choosing multiple cities entry and exit points.
“Has the cheapest fares ever, starting from only 1 Million Naira round trip. Huge baggage allowance.”
The Abuja–London launch comes months after the airline began Lagos–London Heathrow flights, which started earlier in 2024.
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