Monday, November 25, 2024
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Young and Driven: The Rise Of Youth Entrepreneurship In Nigeria

In a country where unemployment rates continue to soar, a new wave of innovation is taking root among the younger generation. Youth entrepreneurship in Nigeria is not just a trend; it’s a movement that is redefining the economic landscape and creating opportunities in a challenging environment.

This article explores the rise of youth entrepreneurship in Nigeria, its impact on the economy, and the support systems necessary to nurture this growing sector.

A Landscape of Challenges and Opportunities

Nigeria’s youth population, comprising over 60% of the total population, faces significant challenges, including high unemployment and limited access to quality education. However, these obstacles have spurred many young Nigerians to seek alternative pathways through entrepreneurship.

The ability to identify gaps in the market has led to innovative business ideas, from tech startups to fashion brands and agricultural enterprises. Young entrepreneurs are leveraging their creativity and resourcefulness to build businesses that address local needs while contributing to economic growth.

Empowering Innovation through Technology

Technology has emerged as a powerful enabler for youth entrepreneurs in Nigeria. With the proliferation of smartphones and internet access, young people are using digital platforms to launch and scale their businesses. E-commerce websites, social media marketing, and mobile payment solutions are facilitating new business models and reaching wider audiences.

For instance, startups like Paystack and Flutterwave are revolutionizing payment systems, making it easier for young entrepreneurs to manage transactions and grow their customer base. These innovations are transforming how businesses operate, creating a more vibrant and dynamic entrepreneurial ecosystem.

Building a Supportive Ecosystem

Recognizing the potential of youth entrepreneurship, various organizations and initiatives are emerging to provide support and resources for young business owners. Programs like the Tony Elumelu Foundation and Lagos State Employment Trust Fund offer training, mentorship, and funding opportunities to aspiring entrepreneurs.

Furthermore, universities and educational institutions are incorporating entrepreneurship into their curricula, fostering a culture of innovation and self-employment among students. By equipping young people with the necessary skills and knowledge, these programs help to bridge the gap between education and entrepreneurship.

Impact on Economic Growth and Job Creation

Youth entrepreneurship is a vital driver of economic growth in Nigeria. By starting their own businesses, young Nigerians are not only creating jobs for themselves but also contributing to job creation in their communities. As these businesses grow, they can hire more employees, stimulating local economies and reducing unemployment rates.

Moreover, youth-led enterprises often focus on sectors such as technology, agriculture, and renewable energy, which are crucial for sustainable development. By addressing local challenges and promoting innovation, these businesses play a significant role in the country’s overall economic progress.

Challenges Facing Young Entrepreneurs

Despite the growing interest in entrepreneurship, young Nigerians face several challenges that can hinder their success. Limited access to funding remains a significant barrier, as many banks are reluctant to provide loans to startups without a proven track record. Additionally, bureaucratic hurdles and regulatory challenges can complicate the process of starting and running a business.

Addressing these challenges requires a concerted effort from the government and private sector to create a more conducive environment for entrepreneurship. Simplifying registration processes, providing access to capital, and fostering collaboration between young entrepreneurs and established businesses can enhance the ecosystem.

The Future of Youth Entrepreneurship in Nigeria

The future of youth entrepreneurship in Nigeria is promising. As more young people embrace the entrepreneurial spirit, they are reshaping the narrative around job creation and economic development. The emergence of innovation hubs and incubators across the country is providing essential support and resources for young entrepreneurs to thrive.

Furthermore, as global interest in African markets grows, Nigerian youth entrepreneurs have the opportunity to tap into international markets and expand their reach. By leveraging technology and collaboration, the potential for growth and success is limitless.

Conclusion: A Catalyst for Change

The rise of youth entrepreneurship in Nigeria is a powerful catalyst for change. As young Nigerians embrace innovation and seek to build their futures, they are redefining the economic landscape and creating a more sustainable and resilient economy.

By supporting and investing in youth-led initiatives, Nigeria can unlock the full potential of its young population, driving economic growth and fostering a culture of innovation. The entrepreneurial spirit among the youth represents hope, resilience, and the promise of a brighter future for Nigeria.

Meta’s Threads Reaches 275 Million Monthly Users, Expands With New Features

Nigerian Treasury Bills Yields Spike Amid Market Selloffs, CBN Auction Anticipated

Money In Circulation Hits N64.36tn

Yields on Nigerian Treasury Bills (NTBs) and Open Market Operation (OMO) bills surged in the secondary market last week following a wave of selloffs by banks and asset managers, causing a shift in recent bullish trends.

Cordros Capital Limited reported an average yield increase of 9 basis points (bps), closing at 25.9% across all instrument’s week-on-week, reversing the four-day rally seen earlier.

In the NTB segment, yields rose by 4bps to 24.2%, while the OMO bills segment saw an 11bps uptick, closing at 26.2%, according to Cordros Capital’s analysis. Traders noted that demand eased significantly by the week’s end, particularly for bills with mid-range maturities, prompting some market players to take advantage of attractive rates amidst improved liquidity conditions. TrustBanc Capital Limited observed significant yield declines on specific maturities, with the 6-Mar and 10-Apr papers falling by 46bps and 107bps, respectively, although selling pressure remained on the 6-Feb maturity.

The Central Bank of Nigeria (CBN) is set to conduct a primary market auction midweek to refinance maturing NTBs worth ₦513.43 billion, a move expected to shape the yield trajectory further. Market analysts anticipate a cautious stance until the auction’s results are revealed, which could offer additional insights into upcoming rate directions.

In October, the CBN offered ₦456.6 billion across two auctions, a 26.7% drop from the previous month, per Afrinvest Capital Limited. Demand at the first auction was especially strong, with investor interest skewed towards long-term bills at a bid rate of 8.2x the offer. The bank sold NTBs at 17.0% for 91-day bills, 17.5% for 182-day bills, and 19.9% for 364-day bills, slightly adjusting the long-end stop rate from 20.0%.

The final auction of October reflected a shift, with stronger offers totaling ₦374.7 billion and demand at a more moderate 1.3x. The auction cleared at elevated stop rates of 17.8% for 91-day, 19.2% for 182-day, and 26.0% for 364-day bills, aligning the CBN’s allotments with total bids.

The midweek auction’s outcome is likely to provide crucial direction for Nigeria’s fixed-income market, as traders and investors watch for signals on yield sustainability amid evolving liquidity and economic conditions.

House of Reps to Investigate $2 Billion Renewable Energy Grants Over Suspected Mismanagement

Meta’s Threads Reaches 275 Million Monthly Users, Expands With New Features

Meta’s social platform Threads now reports 275 million monthly active users, a major step in its effort to compete with X (formerly Twitter). Adam Mosseri, Head of Threads and Instagram, shares the news, expressing appreciation to users while acknowledging there is still work to be done on the platform.

“Yesterday, we crossed 275M monthly active users on @Threads. Thank you to everyone who helped us get here. There’s still a lot to improve, but there’s an exciting energy about this place,” Mosseri says.

Meta launches Threads in July 2023 as an alternative to X, especially following Elon Musk’s acquisition of the platform, which led some users to try new social options. Threads initially sees rapid adoption, reaching 100 million users within a week due to its seamless integration with Instagram. While initial engagement dips as users explore other platforms, growth soon picks up again. In April, Meta CEO Mark Zuckerberg assures investors that Threads’ user growth aligns with expectations, reporting over 150 million monthly users and highlighting the platform’s cultural relevance as a significant draw.

Meta continually introduces features to enhance user experience, including integration with ActivityPub, the decentralized protocol used by networks like Mastodon, which enables Threads users to connect with the larger Fediverse. In March, Threads allows U.S. users over 18 to link their accounts to decentralized networks, supporting Meta’s vision for Threads to champion open internet standards.

By April 2024, Zuckerberg announces that Threads surpasses 150 million monthly users, and by July, the platform reaches 175 million. Active users now reach 275 million, a 57% increase since July, showcasing Threads’ steady rise as a major social media contender.

Northern Youth Forum Endorses Federal Government’s Tax Reform Bills

House of Reps to Investigate $2 Billion Renewable Energy Grants Over Suspected Mismanagement

The House of Representatives Committee on Renewable Energy has announced plans to investigate the utilization of $2 billion in grants intended for renewable energy development in Nigeria. The probe, set to span a period from 2015 to 2024, aims to address concerns over the effectiveness of these investments in alleviating the country’s ongoing energy security challenges.

Chairman of the Committee, Rep. Victor Afam (LP-Anambra), issued a statement on Sunday revealing the probe’s focus on various Ministries, Departments, and Agencies (MDAs) involved in the investment, procurement, and receipt of renewable energy grants.

The committee has scheduled a two-day public hearing for Tuesday, November 5, and Wednesday, November 6, in Abuja, urging relevant stakeholders to participate.

Rep. Afam highlighted the lack of substantial progress in Nigeria’s renewable energy sector, despite significant funding and government initiatives. He expressed disappointment over the nation’s dysfunctional electricity generation and supply systems, which he said remain inadequate despite the substantial foreign and domestic investments targeted at improving renewable energy infrastructure.

“This investigation seeks to ensure transparency and accountability in the use of government and public resources,” Afam stated, highlighting that the probe would assess the integrity of procurement processes and the implementation of renewable energy projects.

The committee extended its gratitude to the European Union and other donor organizations for their cooperation and valuable input, which has supported the committee’s efforts to gather comprehensive insights into the renewable energy sector’s challenges.

The investigation is expected to reveal gaps in project management and propose recommendations to promote transparency and efficiency in handling funds aimed at boosting Nigeria’s renewable energy potential.

Brent Oil Prices Rise As OPEC+ Postpones Supply Increase Amid Global Demand Concerns

Brent Oil Prices Rise As OPEC+ Postpones Supply Increase Amid Global Demand Concerns

Nigeria's Oil Output Dropped To 1.346m Barrels Per Day - OPEC

Brent crude oil prices edged higher on Monday, rising by 1.5% to $74.80 per barrel, following a decision by the Organisation of Petroleum Exporting Countries (OPEC) and its allies (OPEC+) to delay a planned increase in oil supply.

The move, intended to stabilize the market amid global demand uncertainties, comes as economic slowdowns in key regions and geopolitical tensions continue to cloud energy forecasts.

Initially, OPEC+ planned to ease its production cuts from December 1, adding around 180,000 barrels per day (bpd) monthly over the next year. However, after recent discussions, members including Saudi Arabia agreed to postpone the supply hike until January. The delay aligns with the World Bank’s prediction of a possible oil supply glut, which could drive down prices further.

Energy analysts view the delay as a signal of OPEC+’s commitment to maintaining price stability. Warren Patterson and Ewa Manthey, commodities strategists at ING, stated that while the short deferral does not substantially alter market fundamentals, it underscores OPEC+’s focus on supporting prices amid uncertain demand. Recent reports suggest Saudi Arabia is increasingly concerned with some members’ non-compliance with production targets, potentially affecting the group’s cohesive approach.

A Bloomberg survey indicated that OPEC+ output rose by 370,000 bpd last month to 26.9 million bpd, driven largely by Libya’s production rebound, which added 500,000 bpd. Iraq reported a production decrease of 90,000 bpd, though output still exceeded its target of 4 million bpd.

Meanwhile, European natural gas markets also reacted to positive developments regarding supply routes. The Dutch TTF benchmark fell by 3.48% on Friday following reports of a potential transit deal between the European Union and Azerbaijan, which could secure continued gas supplies through Ukraine. The deal would alleviate concerns about a significant gas shortage after the current Russia-Ukraine transit contract expires later this year, which could reduce Europe’s annual gas imports by approximately 15 billion cubic meters.

OPEC+’s decision to postpone its supply increase highlights the coalition’s cautious stance amidst a volatile global energy landscape, where demand shifts and political complexities continue to influence market dynamics and shape energy security strategies for the coming year.

Dangote Refinery Warns Against Substandard Fuel Imports As Foreign Firms Undermine Local Market

Dollar-to-Naira Exchange Rate For 4th November 2024

Dollar To Naira Exchange Rate For 8th Dec 2023

The exchange rate between the Naira and the US dollar, according to the data released on the FMDQ Security Exchange, the official forex trading portal, showed that the Naira closed at 1720.00 per $1 on Monday, November 4 , 2024. Naira traded as high as 1670.00 to the dollar at the investors and exporters (I&E) window on Sunday.

How much is a dollar to naira today in the black market?

Dollar to naira exchange rate today black market (Aboki dollar rate):

The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N1713 and sell at N1720 on Sunday 3rd November 2024, according to sources at Bureau De Change (BDC).

Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.

Dollar to Naira Black Market Rate Today

Dollar to Naira (USD to NGN)Black Market Exchange Rate Today
Buying RateN1713
Selling RateN1720

Dollar to Naira CBN Rate Today

Dollar to Naira (USD to NGN)CBN Rate Today
Buying RateN1669
Selling RateN1670

Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.

African Private Capital Sees 11% Dip n Deal Activity As Global Market Uncertainties Persist – AVCA Report

Federal Ministry Of Communications, Innovation & Digital Economy Announces N2.8billion Google Support To Advance AI Talent Development In Nigeria

Google Launches Emergency Fund For Local News Outlets
Google Launches Emergency Fund For Local News Outlets

The Federal Ministry of Communications, Innovation & Digital Economy (FMCIDE) today announced new support from Google to accelerate AI talent development across Nigeria. This support, which is provided through a N2.8billion grant from Google.org to Data Science Nigeria, will bolster the Ministry’s ongoing AI-driven initiatives to upskill youth and under- and unemployed Nigerians, with a focus on AI skill development and education. This grant is part of Google.org’s broader $5.8million commitment to support digital skills programs across Sub-Saharan Africa.

Dr. ‘Bosun Tijani, Honourable Minister of Communications, Innovation & Digital Economy, emphasised the importance of this support in driving Nigeria’s digital transformation: “This support from Google is a testament to our commitment to positioning Nigeria as a leader in AI innovation. By leveraging Google’s expertise and resources, we are creating opportunities to equip Nigerians with the skills they need to thrive in the global digital economy. This is a major step forward in our journey towards a more inclusive and innovative future for all Nigerians.”

The N2.8billion Google.org grant will support Data Science Nigeria’s work with the Federal Ministry’s AI talent development programs, including:

DeepTech Ready Upskilling Programme: To provide 20,000 young Nigerians with advanced technical skills in data science and AI, preparing them for careers in this rapidly growing field.

Experience AI Programme: To equip 25,000 educators with the tools and resources to teach 125,000 young people about AI, inspiring the next generation of AI innovators.

Government AI Campus Programme: To upskill policymakers and public servants in AI policymaking, ensuring that Nigeria’s AI policies are developed and implemented responsibly.

Earlier this year, the Ministry set the stage for AI integration in Nigeria by hosting the National Artificial Intelligence Strategy (NAIS) Workshop, followed by the release of the National AI Intelligence Strategy. This strategy aims to leverage AI to drive economic growth, improve governance, and enhance the well-being of all Nigerians. This new support from Google.org will build on this strong foundation, further cementing Nigeria’s position as a leader in AI innovation on the continent.

In a significant step toward advancing the AI ecosystem, the Ministry and Google also announced the selected beneficiaries of the AI Fund, established by the National Centre for Artificial Intelligence and Robotics (NCAIR) in collaboration with Google. The Fund will see each selected startup receive ₦100million in funding, along with up to $3.5million in Google Cloud Credits to help scale their solutions. Additionally, these startups will gain access to Google’s world-class AI tools, mentorship from Google’s AI experts, and opportunities to connect with a global network of innovators and partners.

The 10 startups selected for the AI Fund are:

BetaLife Health: Leverages AI to predict demand and match blood types for Africa’s blood supply needs.

Bunce: AI-driven platform that centralises and personalizes customer engagement for businesses

CDIAL AI: Enables seamless text-to-speech and speech-to-text AI functionality in 13 languages across underserved regions.

Farmspeak: Leverages AI to support livestock farmers with disease detection and climate control.

Lendsqr: Streamlines lending operations using AI, empowering global lenders and borrowers.

ProDevs: Connects global companies with vetted African tech talent through AI-driven pre-classification and job matching.

Rana Energy: AI-powered energy management optimising sustainable power for underserved users.

SaaSPro Health: AI-driven healthcare documentation with tailored tools for Nigerian doctors.

Towntalk: Leverages AI to provide contextual security insights for African communities, empowering informed decision making.

Trade Lenda: Streamlines credit analysis for MSMEs using AI, facilitating access to financing.

By focusing on sectors such as healthcare, agriculture, education, and governance, the startups will play a crucial role in addressing local challenges and driving sustainable economic growth through AI.

Matt Brittin, President of Google for Europe, the Middle East, and Africa, shared Google’s commitment to Africa’s innovation ecosystem: “Across Africa, entrepreneurs are harnessing the power of technology, including AI, to address large-scale societal challenges. Google remains committed to supporting these innovators, helping them expand their impact across the continent and beyond. Our work in Africa has always been about unlocking the digital economy’s benefits for more people, and this collaboration continues that mission.”

This initiative aligns with a broader report highlighting the economic potential of AI in Nigeria. According to recent findings from Public First, Artificial Intelligence could add as much as $15billion to Nigeria’s economy by 2030. By equipping local entrepreneurs and innovators with the tools, resources, and training needed to leverage AI, this initiative seeks to harness that potential, further reinforcing why this collaboration is vital for Nigeria’s digital future.

It builds on Google’s N1.2billion commitment to Nigeria, announced in 2023, aimed at empowering 20,000 Nigerians through digital skills and economic growth programs.

Through this support, the Ministry, alongside Google, aims to build a sustainable AI ecosystem that will not only foster innovation but also drive economic and social impact across Nigeria.

African Private Capital Sees 11% Dip n Deal Activity As Global Market Uncertainties Persist – AVCA Report

Dangote Refinery Warns Against Substandard Fuel Imports As Foreign Firms Undermine Local Market

The Dangote Petroleum Refinery has raised concerns over operations at a neighbouring depot leased to an unnamed international trading company, alleging that the facility is blending substandard petroleum products intended for the Nigerian market.

In a statement issued on Sunday, Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Group, revealed that the depot’s activities pose a risk to public safety and threaten the integrity of Nigeria’s refining industry.

The refinery responded to claims by the Independent Petroleum Marketers Association of Nigeria (IPMAN) and related associations that imported fuel is cheaper than Dangote’s products. Dangote attributed these lower costs to substandard imports, warning that such products could damage vehicles and endanger consumers.

“We have been silent on media statements, but recent misinformation from IPMAN, PETROAN, and other associations requires a response, a,” Chiejina said. “any marketer offering lower PMS prices than our refinery is likely importing substandard products, collaborating with international traders to flood the market with low-quality fuel without regard for Nigerian consumers’ health or vehicle safety.” Chiejina said.

Chiejina expressed concerns about regulatory shortcomings, alleging that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) lacks proper laboratory facilities to detect substandard products.

As domestic fuel prices remain a point of contention, Dangote disclosed it had set PMS prices at N960 per litre for ship-based sales and N990 for truck-based sales, slightly below the Nigerian National Petroleum Company’s (NNPC) benchmarks of N971 and N990, respectively.

Highlighting the practice of protecting local industries, Chiejina noted that many countries, including the U.S. and Europe, impose tariffs to protect domestic markets, stating that such measures could benefit Nigeria’s economy. “We are committed to providing affordable, high-quality, locally refined petroleum products, despite those who seek to import low-quality alternatives and undermine local production,” he added.

The Dangote Petroleum Refinery affirmed its dedication to supplying Nigerians with quality fuel, calling on the public to ignore disinformation and support the growth of local industry amidst mounting competition from foreign entities.

IPMAN Calls For Direct Sales Of Petrol From Dangote Refinery Amid NNPC Supply Delays

FG Boosts Compensation for Lagos-Calabar Highway Project Affected Property Owners to N18 Billion

The Federal Government significantly raises compensation for property owners impacted by Section 1 of the Lagos-Calabar Coastal Highway, increasing the fund from N8 billion to approximately N18 billion. Minister of Works, Senator Dave Umahi, makes this announcement at a recent stakeholder meeting in Lagos, where discussions focus on addressing concerns about compensation and procedural fairness.

Umahi explains that while the Federal Executive Council initially approved N8 billion, further assessments by independent valuers led to the upward revision to ensure fair compensation. “Initially, we had N8 billion approved, but the amount now stands at N18 billion just for Section 1,” Umahi states, adding that half of the payments are already issued to property owners, with full payment expected within 10 days.

Feedback and Further Assurances

Reports from the News Agency of Nigeria (NAN) highlight some stakeholder dissatisfaction, with certain lawyers and valuation experts expressing concerns over the adequacy of compensation amounts. Lawyer and valuation expert, Mr. Olusola Enitan, argues that some property owners face difficulties replacing what they lost. Enitan cites Supreme Court rulings that support fair compensation principles.

In response, Umahi assures that the Ministry of Works follows legal standards and remains open to examining additional documentation to expedite the compensation process. House of Representatives Works Committee Chairman, Mr. Akin Alabi, commends the Ministry’s transparency and suggests publishing compensation details to counter misinformation.

About the Project

The 700-kilometer Lagos-Calabar Coastal Highway, spanning nine states, aims to improve regional connectivity and boost economic growth. The project, awarded to Hitech Construction Company Ltd. under an EPC+F contract, shifts most project risks to the contractor with federal support. Construction began in March 2024 with a 47.7-kilometer segment starting from Lagos’s Ahmadu Bello Way.

In April 2024, the government formed a committee to assess and compensate property owners affected by Section 1. This committee, which includes representatives from the Ministry of Works, Lagos State, and local communities, verifies claims and assesses properties to determine fair compensation. According to Umahi, compensation rates are based on federal standards, which exceed typical rates in Lagos. Property owners with verified titles are compensated, unless otherwise waived by presidential authorization.

African Private Capital Sees 11% Dip n Deal Activity As Global Market Uncertainties Persist – AVCA Report

Northern Youth Forum Endorses Federal Government’s Tax Reform Bills

We Have No Plan To Increase Taxes - FG

The Progressive Northern Youth Forum (PNYF) voices strong support for the Federal Government’s proposed Tax Reform Bills, stating they offer a vital opportunity to reshape Nigeria’s economy. Abdulkadir Bala, PNYF’s General Secretary, announces the group’s position following a National Executive Committee meeting where they reviewed President Bola Tinubu’s decision to dismiss the National Economic Council’s (NEC) recommendation to withdraw the bills.

PNYF asserts that the NEC and Northern Governors’ Forum stance does not reflect the will of Northern communities, expressing disappointment with regional leaders for opposing policies aimed at financial independence and growth.

Tax Reform Bills Seen as Essential for Growth

The PNYF claims Northern governors often neglect regional economic development, relying on federal allocations instead of creating revenue sources within their states. The group argues that if governors truly represented their constituents, they would have engaged constructively with the legislative process to refine the bills, rather than urging their withdrawal.

“Why are Northern governors so resistant to self-sustaining reforms?” the statement questions. “Their opposition to these bills seems rooted in avoiding responsibility for independent revenue generation. The Northern governors need to support these reforms or risk being held accountable by the people they serve.”

The forum also praises President Tinubu’s commitment to the reform process, emphasizing that the Northern communities broadly support the bills for their potential to modernize tax administration and align Nigeria’s practices with global standards.

Background on NEC’s Position

Earlier reports indicate that President Tinubu rejected NEC’s proposal to retract the Tax Reform Bill, underscoring the importance of completing the legislative process. His spokesperson, Bayo Onanuga, states the president supports NEC’s feedback but believes legislative proceedings provide ample opportunity for adjustments.

The reforms, part of the Renewed Hope Administration’s agenda, are intended to expand Nigeria’s revenue sources and reduce its reliance on certain sectors.

Stagnant Labor Incomes Contribute To 14 Million Nigerians Entering Poverty, Reports World Bank

African Private Capital Sees 11% Dip n Deal Activity As Global Market Uncertainties Persist – AVCA Report

Africa’s private capital sector is experiencing a notable slowdown, marking the second consecutive year of reduced deal activity, according to the African Private Capital Association (AVCA). Year-to-date (YTD) data reveals a total of 287 deals, an 11% decrease from the 324 deals recorded in the same period of 2023. This year’s first quarter also sees the weakest start in deal values in five years, reflecting broader economic challenges impacting investments.

By the close of Q3 2024, investment levels have reached only $1.9 billion across Africa, a sharp 53% decline from the same period last year and significantly below the five-year average of $4.2 billion. This marks the lowest YTD deal values since 2020.

Smaller Deals Lead the Market

The report highlights a marked shift toward smaller deals, those valued under $50 million, now comprising the majority of transactions. These deals make up 66% of all activity, while deals above $50 million have sharply contracted by 75% year-on-year. The $50-99 million range is especially impacted, plummeting by 92%, with no transactions above $250 million reported. This trend underscores a strategic shift among investors toward smaller, lower-risk deals to manage uncertainty while optimizing returns.

Venture Capital Impacted by Capital Pullback

The retreat from large commitments has significantly impacted venture capital, private equity, and infrastructure investments. Venture capital remains dominant in Africa’s private capital landscape, representing 62% of deal volume and 52% of total deal value. Yet, venture capital transactions are also declining, with deal volumes down by 21% and values nearly halving, showing a 49% year-on-year drop. In response, startups across the continent are scaling back on growth initiatives to streamline their operations.

Mixed Results in Private Equity

While private equity deal volumes increase by 28% year-on-year, primarily due to growth capital deals and buyouts, total investment values remain low. Just $0.4 billion has been deployed across private equity transactions YTD, marking a 66% decrease from last year and the lowest figures in seven years. Deals under $10 million show some resilience, with investments in this category rising from $35 million in 2023 to $55 million so far in 2024. However, infrastructure investments struggle, experiencing a 68% drop in deal value to $0.2 billion. Notably, Africa Finance Corporation’s $150 million senior loan to Kamoa Copper in the Democratic Republic of Congo provided a substantial boost to the infrastructure sector.

Private Debt Emerges as a Strong Performer

Private debt stands out, as deal values in this asset class grow by 14% year-on-year, indicating a shift toward safer, more adaptable investments amid global market volatility. Although private debt values haven’t reached 2022’s peak levels, it remains a crucial capital source, especially in financial services. Lending companies see private debt values double compared to the same period in 2023.

Despite this widespread decline across various asset classes, AVCA emphasizes that Africa continues to offer attractive investment opportunities and remains a promising destination for capital inflows.

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Stagnant Labor Incomes Contribute To 14 Million Nigerians Entering Poverty, Reports World Bank

World Bank Raises Nigeria's Economic Growth To 1.8%
World Bank Raises Nigeria's Economic Growth To 1.8%

Stagnant labor incomes lead to an estimated 14 million more Nigerians experiencing poverty in 2024, according to the World Bank’s report, Macro Poverty Outlook: Country-by-Country Analysis and Projections for the Developing World.

The report indicates that nearly 47% of Nigerians live below the international poverty line of $2.15 per day, as economic pressures and rapid population growth strain national resources. It states, “Labor incomes have not kept pace, pushing an additional 14 million Nigerians into poverty in 2024.”

In response to the increasing poverty rate, the Nigerian government has initiated cash assistance programs targeting 15 million households, with each receiving N75,000 in three installments, benefiting approximately 67 million individuals. However, the World Bank warns that without intensified economic reforms, poverty could rise to 52% by 2026, exacerbated by inflation and a lack of productive job opportunities.

The report emphasizes, “Poverty is estimated at 52% in 2026. Reforms to protect the poorest against inflation and enhance livelihoods through productive work are essential for Nigerians to escape poverty. Maintaining a tight monetary policy while avoiding reliance on unconventional financing methods is crucial for moderating inflation.”

While the Central Bank of Nigeria (CBN) has increased the monetary policy rate by 850 basis points from February to September 2024 and raised the cash reserve ratio to combat inflation, these measures have not fully restored purchasing power.

The World Bank asserts that macroeconomic stabilization alone will not allow Nigeria to reach its growth potential. It notes, “While macro stabilization is essential and currently underway, it is insufficient for achieving Nigeria’s growth potential. Sustained efforts and a credible track record are necessary for progress.”

The report highlights the urgent need for reforms as economic growth struggles to keep pace with population growth, contributing to increased poverty and persistent double-digit inflation. A comprehensive strategy is required to enhance resilience and establish sustainable pathways out of poverty for millions of affected individuals.

Additionally, the World Bank previously indicated that rising inflation and stagnant wages pushed 10 million Nigerians into poverty in 2023. It underscores a challenging reality where nominal earnings fall significantly behind inflation rates, limiting economic growth’s impact on living standards. Approximately 34.3% of Nigerian workers aged 15 and older are categorized as working poor, living below the poverty line despite being employed, often due to low-skilled and low-wage jobs.

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NGX Equities Investors Down N1.22trn In 5-Day Tradding Session

NGX Records N256bn Loss Last Week

Last week, equities investors lost N1.22 trillion in negative transactions on the Nigerian Exchange (NGX) platform, spanning five trading sessions. The sliding trade mood halted a three-week bullish streak.

The massive selloffs overturned the local bourse’s 5-day surge from the previous week. Despite the varied outcomes of the third quarter of the 2024 earnings festival, the market temperature remained rather stable.

As a result, the Nigerian Exchange All-Share Index (ASI) declined 2.03% week on week, finishing at 97,432.02 points, owing to low market mood. Trading patterns revealed strong sell-offs in major sectors, including industrial, insurance, and consumer goods, ahead of October results announcements.

Cowry Asset Limited stated in its market report that the fall indicates cautious trading behaviour amid continuing portfolio rebalancing, with investors contending with economic uncertainty and the most recent macroeconomic data releases.

As a result, the year-to-date return fell to 30.30%, with 45 equities losing ground vs 39 gains. Stockbrokers reported that sectoral performance this week represented broad losses.

The NGX-Industrial Goods sector down 3.70% week on week, led by sharp decreases in equities such as BUA CEMENT, UPDC, and CAVERTON.

The Consumer Goods and Insurance sectors were also down, with REGALINS, ROYALEX, CADBURY, HONYFLOUR, and MCNICHOLS experiencing lower trading activity and price declines.

In contrast, the Oil & Gas sector emerged as the primary gainer, up by 1.15% week-on-week despite continued sell pressure on ARADEL. Stock analysts at Cowry Asset Limited said the positive performance in this sector was largely buoyed by robust sentiment surrounding CONOIL and ETERNA.

Additionally, the Banking index posted modest gains of 0.19% week-on-week, thanks to upward price movements in GTCO, ZENITH, and FIDELITYBNK.

Trading activities on NGX ended on a mixed note, with rebalancing activities intensifying sell-off pressure. NGX data showed the number of trades increased by 13.7% from the previous week, reaching 46,848 deals. However, the weekly trade value fell sharply by 36.4% to N54.63 billion, while the traded volume rose by 26.9% week-on-week to 2.72 billion shares.

Top weekly gainers include EUNISELL (+61%), JOHNHOLT (+20%), UPL (+18%), LIVESTOCK (+12%), and NNFM (+12%), which drew strong investor interest. Conversely, the top decliners included ARADEL (-26%), CAVERTON (-20%), ELLAHLAKES (-13%), REGALINS (-13%), and ROYALEX (-11%).

Overall, the equities market capitalisation of the Nigerian Exchange fell by N1.22 trillion week on week to N59.04 trillion on Friday.

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Interbank Rates Fall As Remita And Signature Bonuses Boost Market Liquidity

Nigerian Banks Limit Dollar Deposit To $5,000 Monthly

Interbank rates saw a decline as signature bonuses—non-refundable payments made by oil companies to the government for commercial rights to develop oil blocks—along with inflows from matured OMO (Open Market Operations) bills, provided a liquidity boost to the financial system.

Money market rates dropped sharply over the past week, settling around 20% amid limited funding pressures in the financial sector, according to AIICO Capital Limited’s recent market report.

Liquidity levels improved significantly, supported by inflows from OMO maturities, Remita, and signature bonuses. Despite debits from the Central Bank’s FX auction settlements and cash reserve ratio maintenance, overall market balance remained sufficient to keep money market rate fluctuations in check.

This liquidity uptick led to a noticeable drop in funding rates, with the Overnight Policy Rate falling by 10.53% to 19.25% and the Overnight Rate by 10.46% to 19.68% week-on-week.

However, the Nigerian Interbank Offered Rate (NIBOR) rose across most maturities, with the exception of the overnight NIBOR, which declined—a sign of stronger liquidity in the banking sector, Cowry Asset Limited observed.

Analysts expect current rates to hold steady, supported by continued system liquidity unless significant debits from the Central Bank impact the balance.

According to TrustBanc Financial Group, system liquidity dropped by roughly 15%, finishing the week with a surplus of ₦398.31 billion. The liquidity boost was driven by bond coupon payments of about ₦300 billion and OMO repayments totaling ₦254.25 billion.

Analysts also noted that average daily liquidity rose by 212%, ending the week with a surplus balance of ₦390.7 billion, contrasting sharply with the previous week’s daily deficit of ₦435.7 billion.

Looking ahead, analysts predict that the Nigerian Treasury bills auction settlement could reduce available liquidity and push funding rates slightly higher in the coming week.

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CBN Sells US Dollars At N1630 To Stabilize Exchange Rate

Tinubu Orders Osayande To Investigate CBN, Related Affairs

In an effort to control exchange rate volatility, the Central Bank of Nigeria (CBN) sold US dollars to commercial banks at N1630 per dollar in its weekly foreign exchange (FX) intervention. This move signals a shift towards finding the true market value of the naira as the currency faces persistent downward pressure.

This week, the exchange rate in the official market breached a significant threshold, prompting fresh intervention by the CBN. Despite these efforts, spot rates continued to decline week over week.

Details from the recent FX sales show that the CBN has been gradually decreasing the volume of dollars sold to banks, even as Nigeria’s foreign reserves have seen steady growth. According to analysts, the CBN’s restrained support for the naira reflects concerns over the nation’s declining export revenues, which limit its capacity to support a “willing buyer, willing seller” approach.

Although the CBN has stated it does not intend to actively defend the naira, recent auctions have demonstrated increased volatility in the currency’s value. In the latest FX auction, the CBN allocated just $77 million to authorized banks, highlighting a significant dollar shortage in the official market. The first auction last week saw $47 million sold, followed by $30 million in a subsequent sale—both at the N1630 rate.

The CBN is also preparing to test its new automated forex trading platform, which is set for full rollout in December 2024. This initiative aims to enhance transparency and reduce sharp practices in the FX market. To ensure a smooth transition, a trial run is planned before the official launch date.

Market observers have noted that the CBN has shifted to selling dollars at higher spot rates, a change from previous trends. In total, the central bank conducted three FX sales last week, disbursing $148 million to authorized dealers.

Despite these interventions, Nigeria’s foreign reserves have continued to grow, marking their ninth consecutive weekly increase, up by $326.64 million to $39.77 billion. This growth suggests a cautious but stabilizing influence on the economy, even as dollar shortages persist.

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Naira Drops By N67 As Nigeria Introduces FX Disclosure Scheme

Federation Account Amasses Over ₦5trn In 6months- RMAFC

The Nigerian naira weakened by N67 against the US dollar over the past week amid the introduction of a new measure aimed at channeling foreign currency held by some locals into the market.

The official spot rate depreciated to ₦1,666.72 per US dollar from ₦1,600 at the beginning of the week, despite the Central Bank selling $77 million to banks to enhance liquidity. In the parallel market, the naira saw a modest gain of N5 week-over-week, closing at ₦1,730.00, influenced by a slowdown in seasonal foreign exchange demand for year-end imports.

Despite the Central Bank’s foreign exchange auctions to banks and the latest efforts to integrate foreign currencies outside banks into the economy, the naira’s exchange rate remained under pressure.

Last week, the Nigerian government launched an amnesty program designed to encourage individuals to bring foreign exchange held outside banks into the formal market. According to a statement from the Ministry of Finance, participants in the program will not face tax audits, and their assets will not be seized.

Finance Minister Wale Edun stated, “The scheme offers a secure, confidential channel for people to reintegrate their legitimate foreign-currency funds, promoting stability and growth for our nation.” He emphasized that the initiative aims to incorporate foreign currency assets held by Nigerians, both domestically and abroad, into the formal economy through voluntary disclosure, depositing, repatriation, and investment.

“The federal government of Nigeria is pleased to announce the commencement of the Foreign Currency Voluntary Disclosure, Depositing, Repatriation, and Investment Scheme, known as the Disclosure Scheme,” the statement read. This initiative is in line with Executive Order No. 15 of 2023 and the Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme Guidelines, 2024, issued by the Honourable Minister of Finance and Coordinating Minister of the Economy on October 25th, 2024.

Minister Edun further explained that the scheme aims to enhance financial security and positively impact the economy by increasing reserves and stabilizing exchange rates. “The Disclosure Scheme is a bold initiative aimed at integrating foreign currency outside the formal financial system into the formal economy. It strengthens transparency and economic resilience, setting us on a path to rapid economic growth.”

He added, “The scheme promotes transparency in the financial sector by formalizing legitimate foreign currency assets held outside the Nigerian banking system by Nigerians both within and outside the country. It is designed to eliminate weaknesses in the existing framework by encouraging cashless and legitimate transactions within the formal financial system, thereby strengthening regulatory enforcement and reducing the likelihood of illicit cash transactions.”

Overall, the Disclosure Scheme provides a secure and confidential avenue for individuals to reintegrate their legitimate foreign currency holdings, fostering national stability and economic growth.

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Nigeria’s Eurobond Yields Increase Amid Foreign Investor Selloff

DMO Set To Auction N150bn Bond On FG's Behalf

Nigeria’s Eurobond market experienced significant activity as foreign portfolio investors (FPIs) initiated selloffs in search of higher returns from international debt securities. These prolonged selloffs led to a nine basis point increase in the benchmark yield week-over-week, according to TrustBanc Capital Limited, with trading activity observed across the longer end of the yield curve.

A group of fixed interest securities analysts noted that Nigerian Eurobonds had been performing positively, indicating a shift in market sentiment and making Nigeria’s yields more appealing. This optimism was further bolstered by growing investor confidence in Nigeria’s ongoing reforms.

However, last week saw a rise in the benchmark yield. Cowry Asset Limited reported that sell pressure affected the short, mid, and long segments of the yield curve, resulting in a 0.09% increase in the average yield to 9.73%, as stated by traders.

The sentiment among foreign portfolio investors turned negative in the international capital markets ahead of the upcoming US elections. Last week’s selloffs reversed previous positive trends, reflecting investors’ efforts to rebalance their portfolios and optimize returns.

TrustBanc Capital Limited highlighted in a report that the Eurobond market started the previous week on a negative note as bearish sentiment regained control. Nevertheless, there was a brief shift in market sentiment on Tuesday when investors showed interest in specific maturities across the yield curve.

AIICO Capital Limited informed investors that intra-day prices saw a temporary uptick on Friday following the release of the October Jobs report. Despite this midweek optimism, the market ultimately closed negatively as bearish forces consolidated their influence on the Eurobond market.

A similar bearish trend was observed across the Sub-Saharan African (SSA) yield curve. Analysts anticipate that yields will continue to rise unless there are significant positive developments both internationally and locally.

Overall, African sovereign bonds faced a downturn, with Nigeria’s average mid-yield increasing to 9.71% week-over-week. In the broader Sub-Saharan African Eurobond market, bearish sentiment prevailed, with the average yield rising by 1% to 25.2% in October, primarily due to substantial losses on the Gabon 2024 and Nigeria 2027 bonds.

Afrinvest Capital Limited reported that Ghana’s restructured Eurobonds gained traction on their second day of trading after Fitch Ratings downgraded them from default status to a ‘CCC+’ rating. This rating reflects Ghana’s improved credit profile following debt restructuring, which aims to reduce debt levels through fiscal consolidation. However, liquidity risks remain elevated due to significant interest expenses relative to revenue.

Afrinvest detailed that the restructured bonds provide investors with two options:

  1. A 37.0% principal reduction in exchange for two new bonds maturing in July 2029 and 2035, offering a 5.0% interest rate until 2028, increasing to 6.0% thereafter.
  2. A bond maturing in January 2037 with a 1.5% interest rate.
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Nigeria’s Top Five Banks Reach Total Assets Of N146 Trillion

The combined total assets of Nigeria’s top five banks rose by over 55% this year, reaching N146.34 trillion by the end of the third quarter of 2024, according to unaudited financial statements.

This asset growth was largely driven by increased lending, as higher customer deposits spurred the banks’ appetite for loan issuance. The Central Bank of Nigeria’s cash reserve ratio policy further supported this expansion in loan portfolios.

Customer loans across these five leading banks grew by 44.18% year-to-date, totaling N41 trillion. Access Holdings contributed significantly, accounting for 28.7% of the total loans extended by these banks. In contrast, GTCO was the lowest lender in the group, contributing just 7% to the aggregate loan figure. Loans represented 28.23% of the total assets of these tier-1 banks by the end of the nine-month period in 2024.

Profitability also surged, with the top banks collectively increasing their profit by 97% year-on-year, totaling N3.43 trillion. This robust earnings growth was driven by adjustments in loan interest rates to reflect shifting market conditions. Despite challenging economic conditions, Nigerian banks have benefitted from successive interest rate hikes as part of the central bank’s tightening policy to counter double-digit inflation. At the latest policy meeting, interest rates were raised to 27.25%, with further hikes anticipated, according to Fitch Ratings.

Among the top performers, GTCO led in profitability, achieving a year-on-year profit increase of over 195% to N1.085 trillion. While its loan book was the smallest at N3.02 trillion, GTCO held a substantial N2.632 trillion in shareholders’ equity, up from N1.477 trillion at the beginning of the year. GTCO accounted for 31.6% of the tier-1 banks’ combined profit.

Zenith Bank ranked second in terms of profit, which climbed 90.5% year-on-year to N827 billion by the end of the third quarter. Zenith’s total assets grew from N20.368 trillion to N30.38 trillion year-to-date, with loans to customers rising to N9.4 trillion from N6.556 trillion.

FBN Holdings followed with a 126% year-on-year increase in profit to N534 billion, up from N236 billion in the prior year. The growth was primarily supported by a significant rise in interest income and additional non-interest income. The bank’s loan book expanded by more than 47% year-to-date.

UBA was next in terms of profitability, with net income growing 16.9% year-on-year to N525 billion from N449.3 billion. UBA’s profit growth was the slowest among the five, even as its loan book expanded by about 47% over the past year.

Access Holdings, Nigeria’s largest bank by assets, posted an 83% profit growth to N458 billion, up from N250 billion in the previous period. Its loan book rose nearly 48% year-on-year to reach N11.861 trillion, though its profit growth was the lowest among the tier-1 banks.

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2024 USA Election: 8 Key Factors To Decide The Outcome For Kamala Harris And Donald Trump

As the 2024 USA Election approaches, Americans are preparing to decide the future of the nation on November 5, amid heightened political tensions and a deeply polarized electorate.

This 60th quadrennial election will see voters select members of the Electoral College, who will in turn elect the next president and vice president for a four-year term. The contest centers on Democratic Vice President Kamala Harris and Republican former President Donald Trump, both vying to lead the nation.

Kamala Harris is aiming to break barriers as the first female president, while Donald Trump seeks to reclaim the White House after his 2020 defeat. Several key factors are likely to shape the outcome of this intense race, determining who will lead the U.S. beginning January 20, 2025.

Here are eight critical issues that could decide the future leadership of the United States:

1. The Importance of Swing States

The 2024 USA Election could be decided in seven crucial swing states: Pennsylvania, Georgia, North Carolina, Michigan, Arizona, Wisconsin, and Nevada. While about 240 million Americans are eligible to vote, these battlegrounds hold the key to victory. Under the Electoral College system, most states use a “winner-take-all” rule, awarding all electors to the candidate who wins that state’s popular vote. To secure the presidency, a candidate must win at least 270 of the 538 electoral votes.

Historically, swing states oscillate between Democratic and Republican support, adding predictability and strategic importance.

2. Impact of Party Strongholds

Party strongholds, particularly Republican states like Texas and Florida and Democratic states like California and New York, will significantly impact the candidates’ strategies. While strongholds provide a reliable voter base, candidates invest heavily in these areas to build a foundation for winning critical swing states.

3. Influence of Celebrity Endorsements

Celebrity endorsements play a role in energizing voters, especially when high-profile figures publicly back candidates. On Harris’s side, prominent celebrities such as Beyoncé, Jennifer Lopez, and Leonardo DiCaprio are vocal supporters. In contrast, Trump enjoys backing from figures like Elon Musk, Buzz Aldrin, and Kid Rock, appealing to his conservative base. These endorsements aim to mobilize fans and can influence undecided voters.

4. Vice Presidential Choices

Kamala Harris’s selection of Tim Walz, Minnesota’s governor, as her running mate could strengthen her appeal among moderate voters, particularly in the Midwest. Walz brings a progressive yet pragmatic track record that resonates with some swing state voters.

Donald Trump, on the other hand, has chosen JD Vance, who aligns closely with the MAGA wing of the Republican Party, energizing Trump’s conservative base and reinforcing his appeal among committed Republican voters.

5. Economic Concerns and Inflation

Economic issues and inflation remain top concerns for many voters. While inflation rates have recently improved, lingering effects from price increases have created a perception that the economy is struggling. Harris focuses on middle-class tax cuts and combating price gouging, whereas Trump promises tax cuts and deregulation to drive growth. Voters in battleground states may lean toward Trump if economic anxieties persist, but recent job growth and inflation stabilization could favor Harris.

6. Immigration Policy

Immigration is a defining issue in this 2024 USA Election. Since the last election, around 3.5 million new citizens have become eligible to vote, especially in battleground states like Arizona and Georgia. Trump has promised to reinstate strict immigration policies, appealing to voters concerned about border security. Harris advocates for a more comprehensive approach, including pathways to citizenship, reflecting her experience on cross-border crime. Their contrasting stances mirror the larger debate and could sway key undecided voters.

7. Abortion Rights

Since the Supreme Court overturned Roe v. Wade, abortion rights have become central for many voters. Harris has positioned herself as a strong advocate for reproductive rights, promising to restore federal protections. Trump, meanwhile, supports the Supreme Court’s decision but has not firmly endorsed a national abortion ban, leaving some conservative voters dissatisfied. Polls indicate that younger voters and women, particularly in swing states, may lean toward Harris, giving her an advantage on this critical issue.

8. Debate Performance

The first and only debate between Harris and Trump, held on September 11 at the National Constitution Center, highlighted the candidates’ divergent priorities. Trump’s meandering approach contrasted with Harris’s focused critique, with both addressing topics like Ukraine, economic policy, and abortion rights. Debate performance could sway undecided voters, especially those weighing economic and national security concerns, potentially shaping the final election outcome.

With Election Day approaching, these factors will influence the race’s trajectory. Whether voters prioritize economic issues, social policies, or candidate character, this election promises to be one of the most consequential in recent history.

2024 USA Election: Two Days To Go—Polls, Campaign Strategies And Key Updates

What A Donald Trump Or Kamala Harris Win Says For The Naira

The naira is under intense pressure since the Tinubu administration adopted an FX floating regime, while the US grapples with its own political and economic challenges. Since June last year, the naira has depreciated by around 70% against the dollar.

The Nigerian government aimed to attract foreign capital, enhance investment appeal, and reduce foreign exchange spending on currency defense through its devaluation strategy. However, the immediate effects have been significant: inflation has hit a 30-year high, disposable incomes have dropped to record lows, and social unrest and crime have risen.

In the black market, naira short sellers are firmly holding the N1,600 support level, and demand for foreign currency remains high due to travel, fuel imports, and overseas tuition. Fitch Ratings projects the naira to close the year at N1,450 per dollar.

The US presidential election could further influence the naira through several interconnected channels:

Economic Policies
A US president pushing for tariffs or protectionist policies, such as those proposed by Donald Trump, could strengthen the dollar, putting the naira under additional pressure. If the US implements trade tariffs, especially on major economies like China, this could trigger global economic shifts that might lead to a stronger dollar, weakening the naira.

Oil Prices
Nigeria’s economy depends heavily on oil exports, and US policies on energy production and sanctions can impact global oil prices. If a Trump administration pursues energy independence and increases domestic production, it may keep oil prices low, negatively affecting Nigeria’s oil revenue and, consequently, the naira.

Foreign Investment and Capital Flows
The election outcome could influence global capital flows. A Kamala Harris administration might be perceived as more business-friendly, potentially increasing US investment in emerging markets like Nigeria and providing some support to the naira.

Interest Rates and Monetary Policy
US Federal Reserve policies, driven by the administration’s economic stance, could increase US interest rates, attracting capital to the US and strengthening the dollar. Trump’s vocal criticism of Fed Chair Jerome Powell and potential plans to advocate for more stimulus could, however, give the naira some temporary respite if the dollar weakens due to fiscal measures.

Geopolitical Stability
The US president’s approach to international relations, especially regarding conflicts or trade tensions, can affect investor confidence. A Kamala Harris administration could prioritize stability, reinforcing global institutions such as the World Bank and IMF, where Nigeria seeks support for its foreign obligations. On the other hand, anticipated Trump policies, including high tariffs, might bolster the dollar, exacerbating the naira’s depreciation.

The election’s outcome will indeed have implications for the naira, but other factors like Nigeria’s internal policies, global economic conditions, and unexpected geopolitical events will also shape its future. Even if Trump wins, a negative global reaction to his policies or an economic downturn could limit dollar gains against the naira. Conversely, another administration might stabilize the US economy without a severe impact on global trade, which may be less damaging to the naira.

In essence, while the US presidential election will influence the naira’s value, the scope of this impact depends on a range of complex global and domestic dynamics that go beyond the US administration’s policy decisions alone.

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