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Naira To Appreciate, Settle At N600/$1 In Coming Months — JP Morgan

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JP Morgan, a global American financial services company, says the naira is anticipated to strengthen and trade at roughly N600 to the dollar in the upcoming months.

The forecast was released by the financial institution on Thursday.

The Central Bank of Nigeria announced the unification of all segments of the foreign exchange (FX) market on Wednesday, indicating that market forces will now determine the exchange rate.

The apex bank’s new policy followed a declaration by President Bolu Tinubu that the “monetary policy needs thorough house cleaning. The Central Bank must work towards a unified exchange rate”.

It was earlier reported that the naira, during trading hours, sold for between N750 and N755 per dollar before appreciating to close at N664.04.

Analyzing the naira float, JP Morgan said although it would take a few days for the dollar/naira spot to stabilize, it fully anticipates an initial overshoot towards the parallel market rate of below 750 or higher.

“While it will take a few days for USD/NGN spot to settle, we fully expect an initial overshoot towards the parallel market rate of -750 or higher, after which, we expect USD/NGN to settle in the high 600s over [the] coming months,” the statement reads.

“We remain long USD/NGN via non-deliverable forwards (NDFs) as well as OW emerging markets bond index global diversified (EMBIGD) index as we expect further positive catalysts to materialize in the near-term.

“We believe there is room for incremental positive surprises with respect to reform depth and execution speed. We had high expectations for the new administrations reform agenda, however, the speed of execution has proven to be a positive surprise.”

‘High Petrol Price Could Spike Headline Inflation To 20%’

Meanwhile, President Bola Tinubu had pronounced that the petrol subsidy payments had stopped, while delivering his his inaugural speech on May 29.

The Nigerian National Petroleum Company (NNPC) Limited immediately adjusted the pump price across its retail outlets nationwide.

JP Morgan said the surge in the country’s petrol price could culminate in a headline inflation increase from 22.41 percent in May 2023, to the 25 percent mark in June 2023.

“The near tripling of fuel prices could see headline inflation jump closer to the 25 percent mark in June and remain firmly above 20% for the rest of the year,” the bank said.

“However, fuel subsidies accounted for 1.7 percent of GDP in 2022 and a complete removal will be positive for the fiscal accounts, although we expect that some portion of the savings will be targeted towards social spending.

“Of course, a weaker exchange rate means the government would receive higher naira revenues from oil and gas exports.

“We believe the devaluing of the naira yesterday could have a more limited impact on headline inflation given a substantial part of the informal economy accessed dollars at the much higher parallel market rate.”

According to JP Morgan, the new policies on both FX and petrol prices will need “some ironing out once a cabinet is announced, we believe there is room for more near-term reform execution surprises”.

BIG STORY

Catholic Priest, Other Church Officials Arrested, Detained Over Abuja Palliative Stampede Deaths

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A senior Catholic priest in Nigeria’s Federal Capital Territory, Abuja, has been arrested over the tragic stampede that claimed 10 lives during the distribution of free food to the needy at “Holy Trinity Catholic Church, Maitama.”

It was gathered that a number of officials of the church involved in the planning and execution of the ill-fated charity event have also been arrested by security agents. All those arrested have been taken into detention and will likely spend Christmas behind bars, a top Catholic Church leader confirmed on Christmas Eve.

The arrests came against the background of demands by the Islamic activist group, “Muslim Rights Concern (MURIC),” for the arrest of those behind the event and a similar one in Okija, Anambra State, where 22 persons were confirmed dead in a billionaire businessman’s house. MURIC had demanded that organisers of a similar tragic charity event in Ibadan, Oyo State, who were taken to court and remanded in prison custody, should be released if those of the Abuja and Anambra events would not be given similar treatment.

Inspector General of Police, Dr. Kayode Egbetokun, had also ordered an investigation into the Abuja and Anambra tragic charity outreaches.

Reacting to the arrest and detention of his church officials, the Catholic Archbishop of Abuja Diocese, Most Rev. Ignatius Kaigama, last night condemned what he described as “verbal demonization of the Catholic Church” by some agents of government in responding to the tragedy at “Holy Trinity Catholic Church in Maitama.”

According to Kaigama, the detention of the priest as well as some officials of the church and the threat to slam criminal charges on the church “is to say the least, uninspiring, unfriendly and a misplaced zeal, and one wonders what purpose these were meant to serve.”

Archbishop Kaigama, who made his mind known in his Message titled, “Christmas: A Season of Hope and Renewal,” said that government officials should have focused on helping the organisers and the church to overcome their trauma instead of compounding it through arrest, detention, and threat of criminal prosecution.

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Thousands Flock To Lagos For Africa’s Biggest Shopping, Entertainment Event [PHOTOS]

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Thousands of excited Nigerians attended the opening day of the much-anticipated maiden edition of the Lagos Shopping Festival (LSF) on Monday, December 23 and were served up an electrifying feast of events, activities and promotions across the the main venue of the festival, the iconic Mobolaji Johnson Arena, (formerly Onikan Stadium).

As advertised, first day of the festival lived up to its billing with a colourful blend of commerce, music, innovation and creativity following its flag off by the Executive Governor of Lagos State, Babajide Olusola Sanwo-Olu.

The Lagos Shopping Festival, powered by the Lagos State Government in collaboration with Chain Reactions Africa, a frontline PR firm, and supported by leading brands, including Zenith Bank, Tolaram Group, First Bank Plc, and Guinness, will see millions of people hit the main venue and select Lagos malls to bag the latest bargains, and bring together the best of city’s retail offering, showcasing local and top global brands and shopping experiences, including in-mall promotions.

Speaking at the event, Governor Sanwo-Olu described the LSF as a history-making festival of back-to-back shopping, fun, and entertainment, reaffirming the Lagos state’s commitment to grow small businesses as well as the entertainment industry.

“This is the first of its kind and this event is made to bring shoppers with MSMEs, with innovators, with entertainers, with the creative industry, with the food industry and everybody,” said Sanwo-Olu.

“For the next three days, we are meant to all come together, enjoy good food, good music, sales at discounted market price, shopping at the highest level and just general entertainment with the creativity of Lagos,” the Governor added.

He called on all Lagosians and Nigerian to join the fun, shopping and entertainment.

“Call everybody from Iyana-Ipaja to Alimosho, call people from Agege, call them from Ebute-Meta to Shomolu, call them from Bariga, from Badagry to Ikorodu, from Epe to Ibeju-Lekki, call everyone to come to the arena here at the Mobolaji Johson Center in Onikan where we’ll be doing shopping, we’ll be doing music, we’ll be doing entertainment for the next two days. This is the first of its kind”, Sanwo-Olu added.

He assured all fun-seekers, buyers and sellers of their safety, saying that they are in a safe, secure, peaceful environment, urging them to “to sit back, relax and see another Lagos creativity that is the first, and the very first Lagos Shopping Festival”.

Governor Sanwo-Olu expressed his appreciation to the sponsors of the Lagos Shopping Festival for their unwavering support to drive the story of Lagos commerce, entertainment and creativity.

“I want to thank all of our sponsors from FirstBank, to Zenith Bank, to Tolaram, to Smirnoff Ice, to Indomie Noodles, to OmniBiz, to PowerOil, to Minimie, and to Malta Guinness, all of them, including the Lagos State Government. I want to thank you”.

He also commended all the local and small businesses at the festival, and urged Lagosians and Nigerians to always patronize them.

“More importantly, to all the small businesses that are inside and under the canopies, go out there and make good deals. Go out there and do huge purchases from them. Go out there and make their small-scale market, work for them; because here, we want the market to be meeting all of the shoppers. That’s what this is all about. It’s about buying stuff at the most reduced market. It’s about entertainment, it’s about food, it’s about tourism. This is what Lagos has given to you again,” Sanwo-Olu said.

Also, commenting, the MD/ Chief Strategist, Chain Reactions Africa, the organisers of the Lagos Shopping Festival, Mr Israel Jaiye Opayemi, buttressed the strategic significance of the festival saying, “LSF is poised to be the catalyst that will redefine the true essence of commerce, especially SME businesses, the creative ecosystem, and fun times with family, friends and loved one. LSF is sure set to open a new vista of socio-economic growth from Lagos, to Nigeria, whilst raising a unique bar in the African market”.

Fun-seekers and business men and women alike had entertainment value for their time, with dancing and singing competition with the winners adjudged by the audience receiving cash gifts. The highlight of the day was the energy-revving musical performances from the youthful Ayo Maff, with the soulful rendition of songs from Adekunle Gold the icing on the cake for the audience who kept singing along to his enchanting stage performances.

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JUST IN: Oriyomi Hamzat, Queen Naomi, School Principal Remanded In Agodi Prison Over Ibadan Stampede

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The Chief Magistrate Court sitting in Iyaganku, Ibadan, Oyo State has ordered the remand of Prophetess Naomi Silekunola, Alhaji Oriyomi Hamzat, and Mr. Abdullahi Fasasi at Agodi Correctional Center following their roles in the Ibadan Children Funfair stampede last week.

Amid heavy security, the three individuals, including the principal of Islamic High School, Bashorun Ibadan, Mr. Fasasi; the proprietor of Agidigbo FM, Alhaji Hamzat; and the estranged wife of the Ooni of Ile Ife, Oba Enitan Adeyeye Ogunwusi, Naomi Silekunola, were on Tuesday arraigned before the court over the incident.

The trio were arrested in connection with the Wednesday, December 18, 2024, stampede that occurred at Islamic High School, Ibadan, resulting in the death of 35 minors, while others sustained injuries.

Chief Magistrate Olabisi Ogunkanmi gave the order following the arraignment of the suspects in court on Tuesday.

The Police prosecutor accused the defendants of committing an offense contrary to Section 324 of the Criminal Code, Cap. 38, Vol. II, Laws of Oyo State of Nigeria, 2000 in a four-count charge for which they were arraigned.

The court premises was filled with relatives of the defendants and other interested parties.

 

More to come…

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