Nigeria’s Interest rate body meeting postponed
Following the appointment of a new board of governors chaired by Yemi Cardoso, a Citi Bank veteran, and the resignations of the four previous deputy governors, the Central Bank of Nigeria’s monetary policy meeting scheduled for today was postponed indefinitely. The transition came at a very critical time for the economy and the CBN. Since the exchange rate reforms of June 14th, the Naira exchange rate to the US dollar has weakened by about another 25% on top of the 40% devaluation when it moved from N460 to the $ to N750. Meanwhile, the previous board had pursued very rigorous monetary policy orthodoxy to combat inflation. In its last meeting, the monetary policy rate was raised to 18.5%.
AFCON to name hosts of 2025 and 2027 competitions tomorrow
The Confederation of Africa Football (CAF) president Patrice Motsepe will tomorrow announce the winning hosts of the Africa Football competition for 2025 and 2027. The right for the 2025 edition is between Algeria, Morocco, Zambia and a co-hosting bid of Nigeria and Benin while the 2027 hosting rights is between Algeria, Botswana, Egypt and the joint candidacy of Kenya, Tanzania, and Uganda. The 2023 edition, holding January / February 2024 will be in Cote d’Ivoire.
Kenya seeks to raise funds by leasing ports
The Kenyan government has plans to lease out sections of its ports to private investors to raise much needed fund, according to the Nation. The seaports in consideration include the Kilidini Harbour, Dongo Kundu Port, Lamu Port, Kisumu Port, and Shimoni Fisheries Port.The government plans to raise US $304 million from the lease of Lamu Port for 25 years. Kenya, like most African economies, have been hit by rising prices, including energy and food prices. The International Monetary Fund (IMF) in July completed the fifth review of its extended fund facility and extended credit facility arrangement that it has so far disbursed US $2.04 billion since April 2021.
Nigeria’s economy in dire straits
Ahead of the end of Q3 2023 this week, the growth data for the quarter will be keenly expected. Nigeria’s economy recorded a growth rate of 2.51% Q2 2023 compared to 3.54% in the corresponding period in 2022. As the graph below shows, both oil and non-oil sector growth are largely on downward trend. The data pattern resembles that of 2015 that culminated in a recession in 2016. The economy today is squeezed on all fronts. News from the agriculture sector points to a weak outlook next year on the back of rising input and energy prices, trading is squeezed by exchange rate volatility and accompanied inflation, while manufacturing is squeezed by rising input prices and exchange rate volatility as well. The oil sector that should have provided the base for Nigeria’s next wave of growth is strangled by oil theft and weak investments. Meanwhile, according to Premium Times report, Russia’s 34,000 tones of fertilizer export to Nigeria is stranded in EU ports for over a year, buttressing the point on rising input prices and outlook for lower agricultural output next year.
CAF announces hosts of AFCON 2025 and 2027
The Confederations of African Football (CAF) yesterday announced Morocco as the host of the 2025 AFCON and the bid of Kenya, Uganda, and Tanzania as hosts of the 2027 edition. The combined bid of Nigeria and Benin were withdrawn before the votes. The 2025 edition will be the second time Morocco is hosting the competition, after 1988 while the East African countries will be hosting it for the first time in 2027. It was going to be tough for the Nigeria / Benin bid given that the 2023 (played next year) competition is in Cote d’Ivoire and the last competition was in Cameroon, all West African countries.
US withholds aid to Gabon
Following the Coup in Gabon last month, the US has withheld aid to the country. However, the US will continue diplomatic and consular services in the country. After the coup on August 30th that followed the announcement that President Ali Bongo won reelection, General Brice Nguema, a cousin to the deposed president, became the new leader of the country. The coup was the latest in the spate of military coups across the central Africa region and the Sahel. Gabon is an oil producing country, with an estimated 200,000 barrels per day, down from the peak of 370,000 barrels per day in 1997. The military leadership has promised a free and fair elections but not provided a timeline for that yet.
UNICEF urges widespread immunisation following rising diphtheria deaths
The United Nations Children Fund (UNICEF) has urged an immediate widespread vaccination in the Northern part of Nigeria, following about 500 deaths from the breakout of diphtheria. The ongoing breakout started December 2022, with epicenter in Kano but also spread to Bauchi, Borno, Yobe, Katsina, Kaduna, and Jigawa. UNICEF and the Nigerian government have since imported 9 million doses of vaccination, with 4 million sent to Kano. Diphtheria, an acute bacteria disease that largely reflects in sore throats is worse amongst children that have not been vaccinated, estimated at 2.2 million in Nigeria.
Nigeria’s Labour Strike
The Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), Nigeria’s largest trade unions has called for an indefinite strike starting October 3rd, two days after the country celebrates its 63rd anniversary of independence. It had a two-day warning strike in August, which was largely ineffective. The planned strike follows the removal of fuel subsidy by the government in June that has led to unprecedented rise in the costs of living, compounded by worsening exchange rate conditions. Meanwhile, the new Central Bank governor Yemi Cardoso has been confirmed by the Nigerian Senate and has announced it will narrow the work of the country’s apex bank compared to his predecessor Godwin Emefiele.
Uganda seeks Chinese Funding for Oil pipeline project
The Uganda government says it has turned to the Chinese to get the funding it requires to complete the East African Crude Oil Pipelines. The completion target is 2025. Meanwhile, the Nigerian National Petroleum Company (NNPC) says it expended N34.4 billion (US $43 million) to repair and manage pipelines in 18 months.
Tanzania faces power shortages
Reports from the Kenya Nation says Tanzania is facing power shortages until March 2024 due to drought and poor maintenance of its gas-powered plants. The Tanzania electric supply company (TANESCO) currently generates 1,990 MWs for the whole country but has a shortage of 400 MWs due to low inflow of water and maintenance issues. 65% of the national output is from gas. This is not the first time the country is facing serious power issues. There had been severe power outages in December 2017 and January 2022.