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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

Laffmattazz: Lagos 3rd Coming Features Star-Studded Lineup with D’Banj, Queen Salawa Abeni, Reminisce, And More

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Legendary comedian Gbenga Adeyinka is set to host the much-anticipated third edition of his comedy show, Laffmattazz: Lagos 3rd Coming, on November 17, 2024.

The event will take place at the prestigious Balmoral Convention Center, Victoria Island, Lagos, promising an unforgettable night of laughter and entertainment.

The lineup features a mix of iconic comedians and musicians, including Omobaba No.1, Gandoki, Dr. Smile, Bash, Queen Salawa Abeni, Reminisce, and a host of surprise acts, with D’Banj headlining the show.

Gbenga Adeyinka remarked, “Laffmattazz: Lagos 3rd Coming will be the biggest comedy show of the year! We’ve curated an incredible roster of iconic headliners, and I’m excited to bring this level of entertainment to Lagos.”

Laffmattazz has cemented its place as a leading comedy brand, showcasing Nigeria’s finest comedic talent. This year’s event is poised to outdo its predecessors, featuring performances from Akpororo, Forever, Seriki Dariya, Princephelar, Dee One, Taooma, Baba Alariya, Madiba of Comedy, ATM, and more.

The night will also include musical performances by Tee Famous, The Countryman, Dami Cruz, and others, with DJ Wiki spinning on the decks.

 

Event Details:

– Date: Sunday, November 17, 2024

– Time: Red Carpet (3:00 PM), Show Start (5:00 PM)

– Venue: Balmoral Convention Center, Victoria Island, Lagos

 

Ticket Information:

– Regular: ₦7,000

– VIP: ₦20,000

– Table of 8 Gold: ₦1.5 million

– Table of 8 Platinum: ₦3 million

 

Purchase Tickets at:

1. Ile Iyan by PODs, GRA Ikeja

2. Ofada Boy, Surulere

3. Prince Ebeano Supermarket, Lekki

 

Online Tickets Available at:

1. Ariiyatickets.com

2. Grandtickets.ng

3. Laffmattazz.ng

 

For ticket purchases, sponsorships, inquiries, and collaboration opportunities, please contact: (+234) 08156111111.

 

Brought to you by: Maltina, Goldberg, Ace Roots, Goldberg Black

Supported by: Parralex Bank, Enclave Green Homes, FIRS, Lagos State Government.

Media Partners: African Magic, Royal Roots Cinema, Hip TV, Views Channel, Vybz FM, Ibrand TV, Rapid Broadcasting Network, City FM, Jordan FM, Rainbow FM, Mainland FM, Boom Radio, TVC, Kennis FM, Beat FM

Outdoor Partners: Nimbus Media, FPL Media, Folham, Media Crush, Elev8 Media

 

Stay updated by following Laffmattazz on social media @laffmattazz_ga1st for the latest news and behind-the-scenes content.

Don’t miss this epic comedy event! Secure your tickets now and join the conversation online using #LaffmattazzLagos3rdComing #GbengaAdeyinka.

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BIG STORY

AfDB Approves $100m For Establishment Of Youth Entrepreneurship Investment Bank In Nigeria

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The African Development Bank (AfDB) has approved $100 million for the establishment of the Youth Entrepreneurship Investment Bank in Nigeria.

Akinwunmi Adesina, president of the AfDB, made the announcement while delivering a keynote address at the 90th birthday lecture of former head of state, Yakubu Gowon, in Abuja.

“I am delighted to announce here today that just three days ago, the African Development Bank’s board of directors approved $100m for the establishment of the Youth Entrepreneurship Investment Bank for Nigeria,” Adesina said.

He emphasized that the initiative reflects the AfDB’s commitment to supporting Nigerian youths, who are vital to the country’s development.

The bank will provide technical assistance, business incubation, quasi-equity, and debt to youth businesses.

It will also offer guarantee instruments to de-risk lending to these businesses by financial institutions.

Adesina added, “It will be a new day and a new dawn for Nigeria.” He also stated that this initiative aligns with President Bola Tinubu’s vision and plans for the youth in Nigeria.

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BIG STORY

Court Threatens To Jail DSS DG Ajayi For Disobeying Order On Access To Nnamdi Kanu

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A federal high court in Abuja has cautioned Adeola Ajayi, the director-general (DG) of the Department of State Services (DSS), against defying the court’s order for Nnamdi Kanu’s visitation rights.

Kanu, the leader of the Indigenous People of Biafra (IPOB), has been held in DSS custody since his re-arrest in Kenya and extradition to Nigeria in 2021.

He is facing trial on a seven-count charge, including treasonable felony.

Kanu’s legal team has repeatedly accused the DSS of denying its members access to their client.

The court had directed the DSS to allow Kanu’s legal team, with a maximum of five people, to visit him on designated days.

On Friday, the registrar of the federal high court in Abuja issued “form 48 notice of consequences of disobedience to the order of court” against DSS director-general.

The notice warned the DSS boss that he would be guilty of contempt of court and would be liable to imprisonment if he disobeyed the court-ordered visitations.

“Take notice that unless you obey the directions contained in this order (see overleaf), by allowing the applicant’s counsel to conduct the court-ordered visitations with the applicant on Mondays, Wednesdays, and Fridays, you will be guilty of contempt of court and will be liable to be committed to prison,” the notice reads.

  • Kanu’s Lawyers Threaten To Sue Ajayi

In a statement on Friday, Aloy Ejimakor, counsel to the IPOB leader, said if Ajayi disobeyed the court order, the defence team would file contempt charges against him.

“This notice is necessitated by the repeated disobedience of the court-ordered visitation of Mazi Kanu by the newly appointed Director-General of the State Security Services (Mr. Adeola Oluwatosin Ajayi), who has, for almost a month, not allowed Mazi Kanu’s lawyers to visit him,” the statement reads.

“To be clear, this notice is a quasi-criminal judicial process that forewarns any person disobeying a court order of the penal consequences of such misconduct.

“Therefore, if the Director-General of DSS persists on this ignoble path, he will leave us with no other option than to commence vigorous contempt proceedings against him.”

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