Nigeria’s economic pulse

Your daily snapshot of Nigeria’s economy, business, and more

Author

Samuel Okocha
October 03, 2024

It's 5:06 PM in Nigeria as I hit send on this newsletter. I'm Samuel Okocha, bringing you the latest 234Digest. As we step up our frequency to bring you snappy daily editions, I hope you find these updates timely and insightful. Every Sunday, we'll dive deeper into key issues. Let's begin today's brief

Today’s briefs

This week began with the naira rallying to 1,542, a significant rebound from its record of 1,667 per dollar last week. The recovery comes as global crude prices, which plummeted 17% last quarter, continue to trade at $71.05 a barrel. Looking ahead, Citigroup projects oil prices will drop further to $65 by the first quarter of next year.

Despite these pressures, structural reforms may help the naira withstand the downturn better than in the past, according to Citigroup's chief Africa economist, David Cowan. While celebrating Nigeria’s 64th independence anniversary, President Bola Ahmed Tinubu, announced that reforms have attracted over $30 billion in foreign direct investments in the past year.

Meanwhile, Nigeria's Purchasing Managers Index (PMI) by Stanbic IBTC Bank fell to 49.8 in September from 49.9 in August, indicating a slight deterioration in business conditions. Inflationary pressures have driven prices up at the fastest rate in six months, with business confidence hitting its second lowest point on record.

And, after a two-year hiatus, Emirates has resumed flights to Nigeria, landing at Lagos’s Murtala Muhammad International Airport. The airline had suspended operations due to unresolved issues, including trapped funds. The returning flight, EK 783, carried 105 passengers and was piloted by Nigerian-born Capt. Mohammed Madugu. Emirates is now in talks with Nigerian carriers to establish code share agreements, which will allow airlines to share routes and services. The Nigerian government has secured agreements ensuring local airlines have the right of first refusal in these partnerships.

Quote of the Day: “The only limit to our realization of tomorrow is our doubts of today.” – Franklin D. Roosevelt

Photo of the day

A resourceful vendor in Abuja transforms into a human mobile shop, balancing well-tied socks on his head, shaving sticks on his chest supported by a chain, and holding more wares in his hands. His assortment includes socks and shower caps, all neatly packed in plastic bags, showcasing the ingenuity and hustle of local traders. Photographer: Samuel Okocha/234Digest

And that’s a wrap. Thank you for reading! I encourage you to share your feedback and subscribe if you’re new to this newsletter. Your insights help me improve and bring you the most relevant news. Stay tuned for more updates tomorrow and our in-depth analysis on Sunday.