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Economic Implications of Joe Biden’s Presidency on Nigeria, Other Emerging Economies



Joe Biden Economic Impliccations on Nigeria

What Nigeria and Other Emerging Economies Should Expect From Joe Biden’s Presidency

As Joseph Robinette Biden Jr., the former Vice President and President-elect of the United States of America, prepares to take over the world’s largest economy from President Trump on January 20, 2021, Investors King looks into what Nigeria and other emerging economies should expect following four years of unnecessary China-US trade war, US-Iran attacks, US-North Korea nuclear war declaration and back and forth with Russia on US election meddling.

Since Donald Trump became the President of the United States on January 20, 2016, he has worked hard to up global risk, increase economic uncertainties and ensure global economy does not expand through China trade war and the disapproval of a deal that took six world powers 12 years to sign with Iran. Like those were not enough, Donald Trump immediately started threatening a fellow psycho, Kim Jong-un of North Korea, with a bigger nuclear button, creating an intense and extremely challenging business environment in recent times.

The record-increase in global economic uncertainties and risks led to capital outflow from emerging economies as investors became wary of impending doom that could erode their capital, especially knowing that emerging economies do not have the structure to protect investment funds once catastrophe struck.

In the first quarter of 2017, just about a year in the office, Nigeria’s Foreign Direct Investment (FDI) plunged by $640.61 million or 41.36 percent from $1.55 billion posted in the final quarter of 2016. This decline continues throughout the year despite the Central Bank of Nigeria introducing Investors and Exporters Forex Window to bridge the gap between exchange rates offered by the apex bank, bureau de change operators and on the black market.

According to a United Nations report, Nigeria’s FDI declined by 43 percent in 2018 to $2 billion, partly because of MTN tax issues with the Federal Government and Trump’s ‘shithole’ comment that demarketed Nigerian assets and discouraged potential investors from looking the Nigerian way in the same year that foreign investment inflow into sub-Saharan Africa rose by 13 percent to $32 billion.

Donald Trump’s poor attitude towards Africa was the main reason African nations increased their Chinese loans and other financial supports that has now distanced the continent from the world’s largest economy. One of the jobs of Joe Biden would be to prove the United States’ commitment to the continent or watch American position in Africa further relegated.

Likely Implications of Joe Biden Presidency on Nigeria and Emerging Nations

As widely expected, Joe Biden’s calm personality and diplomatic nature could help bridge the division created in the upper house — control by the Republicans — and unite US lawmakers for one specific purpose, national building.

Investors King is anticipating that this unity, coupled with the fact that Democrats control the lower house would help speed up the approval of almost $2 trillion stimulus package as the world’s largest economy looks to revive businesses battered by COVID-19 and protect jobs while simultaneously creating new ones.

On the global front, Joe Biden would likely seek an amicable trade agreement with the second-largest economy, China and look to ease global tension and support the International Monetary Fund, the World Bank, United Nations and other global organisations on growth and at curbing or securing COVID-19 cure.

With global tension and uncertainties predicted to subside with the exit of Donald Trump, global investors will start looking into emerging markets with the ability to grow over two percent and with lesser risk. And not just focus on the United States as a safe haven to protect their funds.

Charles Robertson, a Chief Economist at Renaissance Capital (RenCap), said Blackrock’s fixed income section that manages over $2.6 trillion in assets have said they will invest more in emerging economies. To put this in perspective, Africa’s total GDP is $2 trillion, therefore, Blackrock alone could be dumping over $100 billion in fixed income on the continent next year.

Robertson said “The stock of Africa’s Eurobonds only topped $100 billion in 2018, and even if it is only Blackrock’s actively managed part of the business more like $2 trillion in all asset classes (perhaps $700 billion in fixed income), that starts to shift to Emerging Markets this could be very helpful.

“Our base case is that Foreign Direct Investment will stop being a net positive for the US due to Trump’s defeat, and portfolio flows will also go to EM, and together, these will drive the $ gradually weaker in coming years,” he said.

For Nigeria, this will means more forex inflow to augment weak foreign revenue generation amid low oil prices and weak global demand. This will further expand Nigeria’s economic productivity given its import-dependent nature and lack of alternative foreign revenue generation.

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

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China and Brazil Move Away from US Dollar in New Trade Deal



china's economy

China and Brazil have struck a new trade deal that will allow them to trade in their own currencies, bypassing the need for the US dollar as an intermediary.

This agreement marks a significant move by China to reduce its reliance on the dollar and establishes the country as a formidable rival to the US in the global economy.

The deal was announced by the Brazilian government on Wednesday and will enable the two nations to conduct their financial transactions directly, using Chinese Yuan for Brazilian Real and vice versa.

Brazil’s biggest trading partner is China with bilateral trade worth a record USD 150.5 billion in 2022.

For Brazil, this deal represents a significant shift away from the traditional reliance on the US dollar as the world’s primary currency. According to the Brazilian Trade and Investment Promotion Agency, ApexBrasil, the agreement is expected to reduce costs and promote even greater bilateral trade.

The move away from the US dollar as an intermediary in international trade could have far-reaching implications for the global economy. Other countries may follow suit and start conducting their trade and financial transactions in their own currencies, potentially undermining the dollar’s position as the world’s primary currency.

This is not the first time that China has taken steps to reduce its dependence on the US dollar. In recent years, the country has been promoting the use of the yuan in international trade and investment, and has signed currency swap agreements with other countries to facilitate trade in their own currencies.

The shift away from the US dollar comes at a time of growing tensions between China and the US, with both countries engaged in a trade war and competing for global influence. As China seeks to establish itself as a major player in the global economy, this move is just one example of the country’s efforts to assert its economic power and challenge the dominance of the US.

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Nigeria’s External Reserves Receive $1 Billion Boost from Oil Sales and Exports

Nigeria’s external reserves grew by $1.063 billion within 24 hours on March 28, 2023 to $36.668 billion in a move suspected to be inflow from the proceed of crude oil and exports.



United States Dollar - Investors King Ltd

Nigeria’s external reserves have received a significant boost of $1 billion from oil sales and exports, according to recent reports.

The increase resulted in a 0.11% appreciation in Naira value on Wednesday as the Naira to United States Dollar exchange rate moderated from N461.75 it closed on Tuesday to N451.24 at the Investors and Exporters (I&E) forex window.

However, despite the positive news, currency dealers maintained bids between N459.50 (low) and N462.13 (high) per dollar. At the parallel market, also known as the black market, the local currency traded at N744 per dollar on Wednesday.

Analysts at the FSDH research have predicted that the Nigerian Naira will continue to face pressure from high import costs and demand for foreign currency by businesses and individuals. However, they expect the Central Bank of Nigeria (CBN) to continue intervening in the FX market to contain the pace of depreciation.

Nigeria’s external reserves grew by $1.063 billion within 24 hours on March 28, 2023 to $36.668 billion in a move suspected to be inflow from the proceed of crude oil and exports.

The decline in external reserves from US$37.1 billion in January 2023 to US$36.1 billion on March 15, 2023, has been attributed to interventions in the FX markets and limited foreign exchange inflows. However, rising oil production in recent months raises the prospect of reserves accretion in the second half of 2023, according to analysts.

The scarcity of foreign currency in the official market coupled with a high exchange rate of N745/US$ in the parallel market continues to drive high input costs and imported inflation.

It remains to be seen how the country will navigate these challenges in the coming months.

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Rivers State Customs Service Generates Over N54 Billion in Q1 2023



Nigeria Customs Service

The Nigeria Customs Service, Area 2 Command in Onne, Rivers State realised N54.992 billion in revenue in the first (Q1) of 2023. 

According to the Command Controller, Comptroller Baba Imam, this amount realised is part of the N336 billion revenue projected for 2023.

Imam revealed this information while addressing journalists in Onne, Eleme Local Government Area of Rivers State on Tuesday.

This represents an increase of N1.133 billion when compared to the amount generated in the first quarter of 2022.

Imam revealed that the command made several seizures, which he stated is a reflection of their commitment to facilitating only legitimate trade in accordance with extant laws.

The seizures included 24 containers carrying refined vegetable oil, two containers carrying 1,165 cartons of Analgin injection and fireworks, and one 20ft of machete that was detained on documentation grounds until an end-user certificate was provided.

The duty-paid value of the seized containers was N94,652,168.39 million, while the duty-paid value of the seized vegetable oil containers was N833,172,538.42.

Imam stated, “In revenue generation, the command was given a target of N336 billion as revenue target for 2023.

“As of today, the command has generated a total revenue of N54, 992,123, 687.15 billion which transits to 16.3 per cent of the target. When compared to the same period last year, the Command has an increase in revenue of N1,132, 925, 556.82bn.

“This figure was realized in spite of not having vessels berth in Onne Port for some time due to the election atmosphere. We look forward to a continuous rise in revenue generation in the coming months as we expect vessels to berth on our coastline within the next few weeks.”

Speaking further on the command’s anti-smuggling activities, he said within the past few weeks, there has been a lot of seizures.

“This is made visible with the display of a total number which comprises 26 seized containers and one detained container for violation or contraventions of various customs laws and breach of procedures as provided under the revised import prohibition guidelines Schedule 3 Article 4 of the Common External Tariff 2022-2026 as well as Section 46 paragraph (b), (d), (e), (f) and 169 of Customs and Excise Management.

“Twenty four containers laden with refined vegetable oil comprising a total of 24,860 gallons of 25 and 10 litres of La-Jonic vegetable oil. Also seized were other two containers laden with 1,165 cartons of Analgin injection and fireworks with other items.”

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