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Naira rated worst performing currency in 2024

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By Kayode Sanni-Arewa

The naira has emerged as the worst-performing currency in the world in the first half of 2024.

According to a report by Bloomberg on Friday, devaluation, insufficient dollar liquidity, and market volatility have hindered efforts by the Central Bank of Nigeria to strengthen the currency.

Besides the naira, Egypt’s pound and Ghana’s cedi were the world’s other worst performers in the first six months of the year.

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Tracking data from FMDQ, Bloomberg said that the naira weakened for a ninth straight day to 1,510 per dollar by the close on Thursday.

“The losing streak is the longest since July 2017 and takes the decline since the start of the year to 40 per cent.

“The naira’s performance is the worst among global currencies tracked by Bloomberg beside that of the pound in Lebanon, which is undergoing an economic crisis and witnessing dollarisation,” the report noted.

Providing an update on the currency, the Head of Africa Strategy at Standard Chartered Bank Plc, Samir Gadio, in a mail said, “While the naira is undervalued and has seen significant adjustment. The supply of dollars needs to improve for the currency to be supported.

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“Portfolio inflows have yet to pick up, even amid still-attractive local rates

“What will matter going forward is whether it can stabilise on improving foreign exchange inflows and perhaps see some appreciation.”

According to PwC in its latest economic report on Nigeria, the naira depreciated against the dollar by 67.8 per cent from an average of N461.1 in May 2023 to N1,433.80 in May 2024.

“The depreciation took effect despite foreign exchange market reforms by CBN to achieve price discovery and attract liquidity to the market,” PwC said.

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In March, the naira had emerged as the best-performing currency in the world, a feat which was reversed the next month.

Bloomberg added that the currency was volatile between mid-April and May due to the imbalance between demand and supply for the greenback before the trend moderated in June on an improvement in dollar inflows.

Meanwhile, earlier this week, the CBN Governor, Olayemi Cardoso, stated that the worst of the naira’s volatility may be over.

The naira has traded in a narrow range between 1,473/$ and 1485/$ this month, according to FMDQ data compiled by Bloomberg.

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That has sent its 10-day rolling volatility to the lowest in a year and its 100-day swings to the least since November.

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Brotherhood crisis turns violent as worshippers reject Olumba’s successor

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The prolonged succession crisis in a Nigerian Christian religious sect, the Brotherhood of the Cross and Star, has festered on since its founder, Olumba Obu, passed away.

The crisis turned violent recently as angry worshippers in a particular branch in Uyo, Akwa Ibom State, became riotous, destroying the portrait of Olumba’s first son, Rowland, who leads a faction of the sect.

Olumba’s daughter, Ibum, leads another faction.

A video, which is being circulated on WhatsApp groups and Facebook, captured a man in a white cassock yanking off Rowland’s portrait from the wall and smashing it on the floor amid cheers from worshippers.

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Rowland’s portrait was hung near Olumba’s, but the angry worshippers did not attack the latter.

“Bring it down!” a woman’s voice could be heard shouting in the background of the video as the man in a white cassock smashed the glass frame on the ground.

“This is who we are worshipping,” a man’s voice could be heard shouting repeatedly as the camera panned and then focused on Olumba’s portrait on the wall.

It is not clear when the incident happened.

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Amah Williams, the sect’s spokesperson, said the incident happened in Uyo at the sect’s Nsikak Edouk Avenue branch.

Rowland and Ibum, with hundreds of their followers, are claiming the leadership of the 68-year-old sect after their father’s passing, causing a disastrous split in a once united and strong organisation headquartered in the Biakpan community in Cross River State, Nigeria’s South-south.

‘They are rebels’

Mr Williams, the sect’s spokesperson, told reporters on Saturday in Uyo that those responsible for the incident belong to a breakaway faction called Brotherhood of the Cross and Star New Kingdom Ministry.

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He described them as rebels who do not want to accept Rowland’s leadership – he did not call Rowland by name as Olumba’s successor is revered among worshippers as “King of Kings and Lord of Lords, His Holiness Olumba Olumba Obu”.

“They are rebels. They rebelled; they rejected the rulership of the Kingdom of Christ,” Mr Williams told reporters.

“The holy image of our father is what we hold sacred,” he said, apparently referring to the destruction of Rowland’s portrait.

A reporter asked the spokesperson what place Jesus Christ occupies in the Brother of the Cross and Star.

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“That same (Jesus) Christ is the one that came with the new name Olumba Olumba Obu,” responded.

“If Olumba were to be a white man, black men would have gone to worship on his feet.”

The over 1 million global members of the Brotherhood of the Cross and Star do not see themselves as a church but as the new Kingdom of God on Earth. They have also refused to admit that their founder had passed away as the sect has yet to announce his passing or publicly conduct his burial.

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Tinubu’s reforms struggling to deliver meaningful results – IMF

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Eighteen months after the implementation of Nigeria’s ongoing economic reforms, the International Monetary Fund (IMF) has observed that the fiscal policies introduced by the President Bola Tinubu administration are struggling to deliver meaningful results.

Catherine Patillo, IMF Deputy Director, while presenting a report at the Lagos Business School (LBS) on Friday, reported a mixed performance of economic reforms across Sub-Saharan Africa, with notable successes in countries such as Côte d’Ivoire, Ghana and Zambia.

Nigeria was conspicuously absent from the list of success stories in the region.

The report stated that sub-Saharan Africa’s average economic growth rate is projected to remain at 3.6 per cent for 2024. It noted that Nigeria’s growth rate, pegged at 3.19 per cent, falls below this average.

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Patillo said that while macroeconomic imbalances have reduced in several countries, Nigeria has yet to show such progress.

She stated that more than two-thirds of countries have undertaken fiscal consolidation, stressing that while the median primary balance is expected to narrow by 0.7 percentage points alone in 2024, there are notable improvements in Cote d’Ivoire, Ghana, and Zambia, among others.

The report stated, “In contrast, Nigeria’s inflation rate, which slowed briefly in July and August, resumed its upward trend in September, rising further in October.

“At 33.8 per cent, it significantly exceeds the 21 per cent target set for 2024, with analysts predicting further increases in November and December.”

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The report also observed Nigeria’s struggles with exchange rate stability, highlighting it as one of the worst-performing nations in that regard.

According to the report, other countries in the region are experiencing reduced foreign exchange pressures but Nigeria’s local currency depreciation and instability remain a concern.

On debt servicing, the report said Nigeria ranked among countries suffering the heaviest fiscal burden.

The IMF noted that rising debt service obligations are consuming substantial portions of revenue, limiting resources available for development.

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It stated that in Angola, Ghana, Nigeria, and Zambia, the increase in interest payments alone absorbed a massive 15 per cent of total revenue.

The IMF grouped Nigeria among resource-intensive countries struggling with social and political challenges that hinder reform implementation.

Political unrest, public dissatisfaction, and tight financing conditions were identified as major impediments.

The report noted that resource-intensive countries continue to grow at about half the rate of the rest of the region, with oil exporters struggling the most and further noted that adjustment fatigue, public resistance, and weak communication strategies are undermining the impact of reforms in Nigeria.

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The IMF recommended rethinking reform strategies, urging countries like Nigeria to adopt measures that mobilise public support for deep structural changes.

It pointed out the need for greater attention to communication and engagement strategies, reform design, compensatory measures, and rebuilding trust in public institutions.

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NMDPRA seals oil, gas retail outlets in Delta over sharp practices

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has sealed petroleum retail outlets and gas plants over sharp practices in Delta.

Their offenses bordered on under-dispensing, operating without valid licenses and other illegalities within the filling stations.

They were sealed by the surveillance team of the regulatory authority at Asaba and Ibusa in the state.

The Delta State Coordinator of NMDPRA, Engr. Victor Ohwodiasa, revealed over the weekend that the authority would not tolerate a situation where people would be shortchanged as a result of under-dispensing and other illegalities.

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Ohwodiasa called on petroleum marketers to ensure that their metres are well-calibrated and sell accurately.

According to him, the awkward dealings included but not limited to under-dispensing, product quality, suspected diversion, illegal bunkering activities, illegal discharge of unauthorised petroleum products in unauthorised locations.

“In line with our mandates, we constantly visit petroleum retail outlets to ensure they sell one litre for one litre.

“Agreeably, there are bound to be variations due to mechanical error in their machines but these are subject to limits, when it exceeds, we shutdown the facilities,” he said

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“Based on what we have been doing to ensure the consumers are not shortchanged. We have been visiting retail outlets across the local government areas in the state to ensure sanity is brought and maintained within the retail outlets.

“This week, we have sealed four stations within the Asaba and Ibusa axis over offences bordering on under-dispensing, operating without valid licenses and illegal activities within the filling stations.

“We will continue to sustain the tempo in this ember months and beyond to ensure products are made available to consumers and sold at the right prices and quantity,” he said.

Ohwodiasa urged the public to always notify the regulatory authority whenever they notice any awkward transactions in their dealing with the petroleum marketers for immediate actions.

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