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Consumer Confidence Surges Ahead for West Africa

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  • Consumer Confidence Surges Ahead for West Africa

Nigerian and Ghanaian Consumer Confidence rose by as much as 5 and 8 points respectively for Quarter 4, 2017.

The latest West Africa Consumer Confidence Index (CCI) figures released by Nielsen for Quarter 4, 2017 show a marked increase and continued positive performance for both Nigeria and Ghana. The latter climbed eight points to 120, while Nigeria’s score rose five points to 122, delivering continued optimism in these two West African countries.

Nielsen West Africa & Maghreb MD Abhik Gupta comments; “The economic outlook in both Ghana and Nigeria is turning positive, spurred by a recovery in non-oil sectors, healthier agricultural production, favourable monetary policies, and a slight easing in inflationary pressures. This positive attitude is also seen in the consumer confidence level, which has risen quarter on quarter. Overall the economy is expected to inch forward in a positive direction, with growing optimism translating into consumption.”

Ghana on a high!

The eight-point increase in Ghana’s latest Consumer Confidence Index (CCI) figures, is due in part to a higher proportion of Ghanaians perceiving the state of their job prospects in the next 12 months to be ‘Excellent’ or ‘Good’, which now stands at 69%, the highest level since quarter 1, 2014 and a nine percent increase from last quarter. The sentiments around personal finances have also seen a one percent rise to 79% for those who feel the state of their personal finances would be ‘Excellent’ or ‘Good’ in the next 12 months, contributing to the overall consumer confidence index in Ghana.

Recovery in the oil and gas sector, healthier agricultural production, and favourable monetary policies, have all contributed towards reinstating positive sentiment among Ghanaians. Improving sentiment around employment prospects and personal finances is translating into larger and more favourable outcomes in consumption, with 48% consumers saying it is an excellent time to buy the things they want and need; a five percent rise from the previous quarter.

With consumers having had to keep their purse strings pulled tight for some time now, there is still concern on how far their cash will go. Only 56% of Ghanaians have spare cash once they have covered their essential living expenses, a drop of two percent leading to a more cash-strapped sentiment.

Nigerian consumers a close second

In comparison, consumer confidence in Nigeria is as positive as neighbouring Ghana with a three-percent increase in perceived job prospects for the next 12 months. The biggest improvement, however, is in consumers’ personal finances with a nine percent increase in the number of Nigerians feeling positive that their finances will improve over the next 12 months.

This is supported with a parallel nine percent increase in Nigerians saying that they have spare cash in their pockets once they meet their essential living expenses.

Job prospects continue to improve, with sentiments moving up three percent to 65%, followed by an increase of four percent of Nigerians feeling that now is the time to purchase the things they need and want.

Food inflation and ever-present price pressures, will continue to keep consumers on their toes when it comes to changing their basket mix and looking for further efficiencies in their consumer habits.

Gupta comments; “Nigeria has faced various challenges over the last two years including recessionary trends from mid-2016, and a rapidly rising inflation, however we are seeing steady recovery in job prospects and personal finances, bringing some relief to inflation and we expect further recoveries in both sentiment and consumption.”

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.

Crude Oil

Oil Prices Slide as U.S. Crude Stockpiles Surge, Heightening Demand Concerns

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Oil prices declined on Thursday as concerns over demand intensified due to a larger-than-anticipated build in U.S. crude stockpiles.

Brent crude oil, against which Nigerian oil is priced, dropped by 0.5% to $83.25 a barrel while U.S. West Texas Intermediate crude oil fell by 0.3% to $78.28 a barrel.

The Energy Information Administration’s report revealed a substantial increase in U.S. crude oil stockpiles by 4.2 million barrels to 447.2 million barrels for the week ending February 23rd.

This surge surpassed analysts’ expectations and marked the fifth consecutive week of rising inventories.

While gasoline and distillate inventories witnessed a decline, concerns regarding a sluggish economy and reduced oil demand in the U.S. were amplified.

Satoru Yoshida, a commodity analyst with Rakuten Securities, highlighted that the significant stockpiles have heightened investor worries.

Moreover, the anticipation of delayed U.S. interest rate cuts further weighed on market sentiment, potentially undermining oil demand.

Traders have adjusted their expectations for rate cuts, with an easing cycle predicted to commence in June rather than March as previously anticipated.

Market participants await the U.S. personal consumption expenditures price index for insights into inflation trends, while the possibility of an extension of voluntary oil output cuts from OPEC+ looms over price dynamics, amid lingering uncertainty in the demand outlook and geopolitical tensions in the Middle East.

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Crude Oil

Crude Oil Shortage Threatens Dangote, Government Refineries, Minister Raises Alarm

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Dangote Refinery

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has sounded a clarion call over a looming crude oil shortage that threatens the operations of the newly inaugurated Dangote Petrochemical Refinery and government-owned refineries in Nigeria.

Addressing stakeholders at the seventh edition of the Nigeria International Energy Summit in Abuja, Minister Lokpobiri expressed concerns that unless deliberate efforts are made to increase investments and crude oil production, these refineries may struggle to obtain enough feedstock for petroleum product manufacturing.

The Dangote refinery, a colossal project spearheaded by Dangote Industries Limited, has a daily requirement of up to 650,000 barrels of crude oil, while government-owned refineries could need approximately 400,000 barrels.

However, the current pace of crude oil production and investment in Nigeria falls short of meeting these demands.

Minister Lokpobiri highlighted the need to ramp up production and attract investments in the upstream sector to ensure adequate feedstock supply for the refineries.

He emphasized the importance of efficiently utilizing Nigeria’s abundant oil and gas reserves to enhance domestic energy security and economic prosperity.

Furthermore, the minister underscored the significance of investing in energy infrastructure and transitioning towards more environmentally friendly practices to address Nigeria’s energy needs effectively.

The alarm raised by Minister Lokpobiri underscores the urgency for strategic interventions and collaborative efforts to mitigate the impending crude oil shortage and secure the future of Nigeria’s refining industry amidst evolving global energy dynamics.

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Energy

NNPCL Pledges End to Nigeria’s Energy Scarcity Within a Decade

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Mele Kyari - Investors King

The Nigerian National Petroleum Company Limited (NNPCL) has announced a bold initiative aimed at ending Nigeria’s persistent energy scarcity within the next decade.

Mele Kyari, the Group Chief Executive Officer of NNPCL, revealed this ambitious plan during the opening ceremony of the seventh Nigerian International Energy Summit in Abuja.

Kyari’s announcement comes as a beacon of hope for millions of Nigerians grappling with chronic power shortages and energy deficiencies.

In his statement, Kyari expressed confidence that all issues related to energy scarcity in the country would be resolved within the next 10 years.

Assuring stakeholders of NNPCL’s unwavering commitment, Kyari emphasized the company’s dedication to collaborating with partners to bridge the energy deficit gap and foster prosperity for all Nigerians.

He highlighted NNPCL’s pivotal role as a key partner to oil-producing companies in Nigeria, facilitating the divestment of international oil companies from onshore and shallow water assets in the country.

Furthermore, Kyari underscored NNPCL’s statutory mandate as the enabler of national energy security, emphasizing the importance of sustainable production from divested assets to ensure energy security for Nigerians.

In addition to addressing domestic energy challenges, NNPCL is also exploring avenues for sustainable energy investment across Africa.

Kyari revealed the company’s intention to invest in the proposed African Energy Bank, aiming to secure funding for energy projects on the continent and guarantee regional energy security.

The event, attended by prominent stakeholders including government officials and representatives from international organizations, marks a significant step towards reshaping Nigeria’s energy landscape and fostering economic development through improved energy access.

As NNPCL charts its course towards energy abundance, Nigerians remain cautiously optimistic about the prospects of a brighter energy future.

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