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Firm Advocates Proper Implementation of Economic Recovery Plan

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Recession
  • Firm Advocates Proper Implementation of Economic Recovery Plan

A non-bank financial institution, CardinalStone has said unless the Federal Government ensured proper implementation of the Economic Recovery and Growth Plan (ERGP), projected goals may remain elusive.

The firm however lauded the move, describing it as an initiative that would allow market forces to reign and return the country to growth path.

The Federal Government early in the month launched an ambitious Economic Recovery and Growth Plan (ERGP), a medium term plan for 2017–2020, meant to restore economic growth while leveraging the ingenuity and resilience of the Nigerian people. However, the plan has attracted a lot of scepticisms with regard to actual implementation and achieving set goals, which the government insists it is committed to.

One of the Founding Partners of the company, Muhammed Garuba, said: “The economic plan is transformational and would cause a turnaround. But proper implementation is key to the realisation of the objectives of the plan.”
Garuba, who spoke at the organisation’s first Annual General Meeting (AGM) cocktail in Lagos, lamented the decline in Foreign Direct Investment (FDI) into the country, noting that the political atmosphere combined with the shortfall in oil prices and the high inflation rates were affecting the inflow.

“It is good that government wants market forces to rain with the new economic recovery plan. This will allow people to make progress. One of the problems we have had is that the government has not been communicating appropriately,” another Founding Partner, Femi Ogunjimi added.

In its assessment of the new economic plan, CardinalStone noted that whilst no guidance was provided regarding the outlook for the Naira over the lifespan of the ERGP, the policy seeks to engender a more reflective exchange rate regime through policies that would remove uncertainties and restore investors’ confidence in the market.

It further noted that there were no specifics on the measures that would be adopted to improve foreign exchange (FX) liquidity and narrow the spread between the interbank and parallel market rates.

Speaking about investment in Nigeria, Ogunjimi said there are fundamental issues that must be resolved to boost FDI into the country.

“It is good for investors to think about their investments on a long term basis and not short term. Solving some of the issues including power and generally the ease of doing business will improve inflow of FDI into the country. Though it may be rough but it will pay off on a long term,” he concluded.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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