UNICEF urges widespread immunization

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CAF takes Africa football to East Africa for the first time in 2027 as Kenya, Tanzania, and Uganda got hosting rights for AFCON.

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Markets

• Oil prices surged 3% on Wednesday to the highest settlement in 2023, after a steep drop in U.S. crude stocks compounded worries of tight global supplies. Brent crude futures closed up US $2.69, or 2.86%, at US $96.65. It breached $97 a barrel during the session. U.S. West Texas Intermediate crude futures (WTI) climbed $3.29, or 3.6%, to $93.68. The session high was over $94.

• US natural gas futures traded around US $2.8/MMBtu in the last week of September, driven by strong demand and slightly reduced production estimates, even as the market entered the shoulder period characterized by lower power demand. Gas production in the US eased to 102.11 bcfd in September, down from the August record of 102.3 bcfd.

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Africa Headlines

• 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 3^rd , two days after the country celebrates its 63^rd 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.

• 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.

• 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 30^th 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.

• 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.

Global Headlines

• China interested in WTO reforms – China has again expressed the urgent need for reforms of the World Trade Organisation (WTO), currently led by Nigeria’s Ngozi Okojo Iweala. The country’s leadership is calling for the continuation of the current overall trends in trade and globalisation. It is urging the highest level of engagement and participation in WTO reforms. While China benefitted immensely since joining the world trade body 2001, recent geopolitical tensions and international trade alliances are seeking to upend and bypass WTO rules. China is the world’s second largest economy after the US, but the largest trading nation and the world’s largest consumer market.

• More oil and gas drilling in Scotland – The UK government has approved the development of an US $10 billion 300 million barrels of oil development in Scotland. The approval is granted to Norway’s energy giant Equinor and British energy company Ithaca to develop the Rosebank field in the North Sea. The announcement has ruffled those concerned with the environment, but it is in line with the UK government’s renewed determination of a smoother energy transition that is less costly to the UK economy. The project is expected to have a value addition of GBP 24.1 billion, producing 39 million CFD of gas in the first 10 years and maintain 450 jobs in its lifetime.