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Africa Headlines

Naira falls to all-time low on official window, trades 1348/$ – Naira has reached an historical low N1348.63/$ on the Nigerian Foreign Exchange Market (NFEM), compared to N891 on Friday, a whopping daily depreciation of 33%. This is the worst level for the Naira since the exchange reforms of June 2023. On the streets, it exchanged for N1450 /$. It comes amidst the Central Bank of Nigeria (CBN) efforts to clear backlogs of foreign exchange, which it announced it made another US $500 million last week. The Governor, Yemi Cardoso said last week that the Naira is undervalued, though pressures remain. The immediate strategy of the Bank includes the expectation of an increase in oil production, targeted at 1.7 million this year, improving the receipts from the National Oil Company, Nigerian National Petroleum Corporation (NNPC) ltd, and collaboration with fiscal authorities to reduce liquidity in the economy through moderation of deficits and debts. In the meantime, a near 100% depreciation in seven months is the worst in the world, accompanied by unprecedented pressures on household budgets, business plans, and productivities.

Nigeria’s Apex restructuring takes effect as 1,500 staff to resume at Lagos office – The ongoing plans to relocate largely “customer” facing departments to Lagos raises gear as the Lagos office is set for additional 1,500 people. The departments involved include the banking and other financial services supervision departments, consumer protection, payments, and financial policy. The relocation will improve the proximity of the departments to their functions and decongest and improve staff safety at the head office in Abuja. The CBN has been unduly criticised by those that see it as a subtle move to return the head office to Lagos and see it as against Northern interests. What is missing in most of the conversations is how did the CBN and headquarters have nearly 5,000 staff. Following the Bank’s plan to professionalise it for efficiency, the Bank had reduced the number of staff from 10,000 in 1999 to 4,914 by 2005. The congestion at the head office is a consequence of what would have been significant “political” appointments at the bank in the last decade. According to estimates, the head office has the same number of total staff the Bank had in 2005.

Nigeria’s Pension funds rise by 22% to N18tn – NAICOM – According to the National Pension Commission, the total assets under Nigeria's Contributory Pension Scheme reached N18.36tn by the end of 2023, with a 22.43% increase during the year. Most of the assets, 64.9%, were invested in Federal Government securities, particularly FGN bonds, which constituted 96% of the total FGN securities. Domestic equities also saw significant growth, increasing by 70% year-on-year to N1.57tn, driven by the robust performance of the NGX. However, alternative investment classes such as real estate and private equity remained small portions of the overall portfolio. The pension industry's growth trajectory is expected to contribute to Nigeria's economic development in the mid to longer term. The devaluation of the naira impacted the value of pension funds, as it did the entire economy, leading to a decline in dollar value. The Commission recognizes the effects of inflation and devaluation on the currency's purchasing power.

AFCON: Cote d’ Ivoire knocks out holders Senegal – Cote d’ Ivoire, the host nation of the 2023 Africa Cup of Nations, advanced to the quarterfinals after defeating reigning champions Senegal in a penalty shootout. The match ended 1-1 after extra time, with Franck Kessie scoring the equalising goal for Cote d’ Ivoire from a penalty kick. Kessie also became the shootout hero by converting the winning penalty. The host nation redeemed themselves after a disappointing group-stage performance that included two defeats, including a humiliating 4-0 loss to Equatorial Guinea. French coach Jean-Louis Gasset was fired following that defeat, and assistant coach Emerse Fae was promoted to lead the team. They will now face the winner of the Mali vs. Burkina Faso last-16 match in the last eight. The victory sparked strong support from fans, who lined up overnight to buy tickets for the match in Yamoussoukro.

Mali, B’ Faso, Niger exit may weaken $277bn ECOWAS trade – Report – The potential withdrawal of Burkina Faso, Mali, and Niger Republic from the Economic Community of West African States (ECOWAS) could have significant implications for the region's US $277.22 billion trade with the world. In 2022, total trade volumes from the ECOWAS region reached US $277.22 billion, with exports led by Nigeria at US $63.34 billion. The recent military coups in these countries prompted their military leaders to announce their withdrawal from the economic bloc, citing a deviation from the organization's founding principles. The exit of these countries could impact the total imports and exports of the region, which is intended to be a key pillar of the African Continental Free Trade Area. Additionally, the three countries are members of the West African Monetary Union, and their suspension from the regional financial market has further complicated the situation. However, ECOWAS has stated that it has not received any formal notification of withdrawal and remains committed to finding a negotiated solution to the political impasse.

Global Headlines

Two vessels freed following Somali pirate hijackings – Seychelles forces have rescued a Sri Lankan fishing boat from Somali pirates, while the Indian Navy has freed an Iranian-flagged fishing vessel in separate incidents. The hijackings raise concerns about security in the region's waters, with Yemen's Iran-backed Houthi rebels targeting ships in the Red Sea. Seychelles special military forces boarded the Sri Lankan boat, located 840 nautical miles east of Somalia, while the Indian Navy successfully released the Iranian vessel and its 17 crew members. The resurgence of Somali pirate activity, a decade after causing chaos in international shipping, is causing alarm. These incidents occurred amid increased Houthi attacks in response to Israel's conflict with Hamas, prompting international naval forces to divert from the Gulf of Aden to the Red Sea. The potential exploitation of the security vacuum by Somali pirates is a growing concern.

US, Britain announce sanctions on network that targeted critics of Iran – The United States and the United Kingdom have imposed sanctions on a network of individuals directed by Iran's Ministry of Intelligence and Security, who targeted Iranian opposition activists for assassination. The US Treasury Department put sanctions on 11 people involved in the network, including Iranian narcotics trafficker Naji Ibrahim Sharifi-Zindashti. The network, led by Sharifi-Zindashti, carried out assassinations and kidnappings across various jurisdictions to silence critics of Tehran. The sanctions freeze any US assets of those targeted and prohibit Americans from dealing with them. The US and UK have taken these actions amidst escalating tensions in the Middle East. Earlier, they accused Iran-backed groups of a drone attack in Jordan that killed three US military personnel. Furthermore, the UK imposed sanctions on Iranian officials involved in threatening to kill journalists on British soil and individuals associated with international criminal gangs linked to Tehran.