Monday, January 17Inside Business Africa
Shadow

Tag: Pandemic

Financial regulators evolve strategies for risk management under COVID-19

Financial regulators evolve strategies for risk management under COVID-19

Business
Financial services regulators have their work cut out, amid heightened cybercrimes and credit risks reinforced by the Coronavirus (COVID-19) pandemic, thereby triggering fears of solvency in Nigeria’s banking sector. Such fears notwithstanding, the regulators – the Nigerian Deposit Insurance Corporation (NDIC), and the Central Bank of Nigeria (CBN), have reassured stakeholders that there is no cause for alarm, as they are constantly devising strategies to remain ahead of fraudsters and cyber-criminals. Specifically, the NDIC insisted that “The Nigerian Banking System is not under threat of systemic crisis. Prompt and decisive interventions by the regulatory authorities have provided countercyclical buffers for the economy and the financial system.” Giving the assuran...
LCCI to leverage virtual, physical fair to hedge pandemic effects

LCCI to leverage virtual, physical fair to hedge pandemic effects

Business
With COVID-19 disrupting global value-chains, the Lagos Chamber of Commerce and Industry (LCCI), has said it hopes to leverage the 2020 edition of the Lagos International Trade Fair to hedge the impact of the pandemic on the economy as well as promote trade and drive industrialisation. To achieve this, the LCCI noted that this year’s trade fair would be held virtually and physically simultaneously to encourage participation, especially in the light of global travel restrictions. Chairman, Trade Promotion Board, LCCI, Gabriel Idahosa, who made this known, Tuesday, said the trade fair, scheduled for November 6 to 15, at the Tafawa Balewa Square, Lagos would be held in adherence to all COVID-19 safety protocols to prevent the spread of the pandemic. Idahosa said the Chamber had e...
Oil demand to slow by 3.7million bpd for rest of 2020

Oil demand to slow by 3.7million bpd for rest of 2020

Energy
Oil demand for the rest this year may continue to fall by as much as 3.7 million barrels per day (Mb/d), Outlook released by global research body, Rystad Energy, backed the projections with the second wave of Coronavirus pandemic, saying the development would stall demand. Like Rystad Energy, the Organization of the Petroleum Exporting Countries (OPEC), had earlier in the month, revised world oil demand in 2020 to an estimated drop of 8.9Mb/d (bpd), adjusting it up by 0.1Mb/d against last month’s projection. This comes as OPEC+ agreed to ease output cuts. The cartel had agreed on a 9.7Mb/d, but the cuts are slated to expire at the end of July, which is likely to reduce from 9.7Mb/d to 7.7Mb/d. Reopening of economies in Europe and other parts of the world had triggered an increase in oil...
Moody’s Affirms Afreximbank’s Rating

Moody’s Affirms Afreximbank’s Rating

Business
African Export-Import Bank (Afreximbank) has announced that the global credit ratings agency Moody’s, recently affirmed its long-term credit rating at Baa1, with a stable outlook. The agency determines its rating for supra-nationals based on three criteria: capital adequacy, liquidity, and funding and strength of member support. Moody’s noted that Afreximbank’s credit profile was, “supported by its collateralised trade finance business model, with a short average asset maturity and a relatively well-diversified loan portfolio that allows it to respond flexibly to the coronavirus crisis.” The report added that, “the stable outlook is supported by the Bank’s successful equity-raising performance and its track record of adapting its strategy to challenges in the operating environment of...
US agency to double commitment in Nigeria by $530m

US agency to double commitment in Nigeria by $530m

Economy
The United States (U.S.) Development Finance Corporation (DFC), has reaffirmed plans to double its commitment in Nigeria with about $530 million. The Corporation, which said it is currently on the active commitment of $530 million, said it is interested in agriculture, critical infrastructure, financial services, and healthcare sectors. It maintained that in the wake of the COVID-19 pandemic, one of its key focuses is to create a more resilient global healthcare system. At a webinar programme, tagged; “US Project Financing Opportunities,” organised by the American Business Council in partnership with the U.S. Mission, Regional Director for Africa, DFC, Vibhuti Jain, said Nigeria is a priority country for the DFC. She said the Corporation recognised robust financ...
Second wave of pandemic poses risks to oil rebound

Second wave of pandemic poses risks to oil rebound

Oil & Gas
As countries brace for a second wave of the coronavirus spread, analysts have warned that an unexpected hit to demand could derail oil prices, as producers are yet to reduce their stock builds in the last quarter. Similarly, warnings of massive storage build-ups have re-affirm fears that the worst may not yet be over for oil prices. Analysts at Cordros Capital and S&P Platts warned that any shock to demand will present quite a conundrum for an already stretched OPEC+. In the wake of the lockdown in April, Nigeria had in a desperate effort to offload and sell stranded barges of oil, offered oil traders huge discounts on its crude grades below the $10 mark, as glut and energy imbalance triggered by the COVID-19 hit the oil industry. Brent Crude traded lower ye...
Stakeholders seek strategies to mitigate market volatility, uncertainties

Stakeholders seek strategies to mitigate market volatility, uncertainties

Capital Market
As the COVID-19 pandemic continues to ravage economies globally and stall business growth in developing countries, stakeholders have called for the adoption of risk management strategies for businesses to thrive under the current VUCA market environment. According to them, the West African market framework is currently going against a matrix of growth, fiscal strength and monetary room, noting that Nigeria’s current growth is averaging at 2.2 per cent, which is lower than previous annual cycles. Speaking at the third virtual session of the Rand Merchant Bank (RMB) Nigeria’s Economic and Business Conference, the stakeholders noted that a VUCA market is one characterised by volatility, uncertainty, complexity, and ambiguity, adding that locally, concerns have remained a...
NASU rejects increase in pump price of petrol, seeks reversal

NASU rejects increase in pump price of petrol, seeks reversal

Appointments
Increasing the price of petrol at a time when workers are losing incomes and some out of jobs amid the coronavirus pandemic is most insensitive, and smacks resentment for workers, the Non-Academic Staff Union of Educational and Associated Institutions (NASU), has said. The General Secretary of NASU, Peters Adeyemi, said the announcement came to the working class as a shock, especially coming at a time when most workers are still struggling and have not yet found their feet financially after most of them had lost incomes and continue to lose incomes and jobs as a result of the COVID-19 pandemic. He explained: “Most workers are months back in the payment of their rents and other loans. We will not fail to state our conviction that all these abracadabra going on with the price of petrol...
‘Clean energy investment offers opportunities for post-COVID recovery’

‘Clean energy investment offers opportunities for post-COVID recovery’

Energy
As the world recovers from the COVID-19 pandemic, Sustainable Energy for All (SEforALL) with headquarters in Vienna, Austria, has developed ‘The Recover Better with Sustainable Energy Guide for African Countries’ to support African countries, as they develop post COVID-19 recovery plan and stimulus packages. The guide is part of a series, which includes guides for countries in the Caribbean region and Southeast Asia region released last week.The new guide by Sustainable Energy for All showed how clean energy investment can support countries to ‘Recover Better’, and use this unique moment to reset their economies and close energy access gaps. This is particularly key for Africa after COVID-19 has highlighted the deep regional divide on energy access progress. Africa is a region full of p...
Stakeholders urged to explore COVID-19 opportunities, diversify economy

Stakeholders urged to explore COVID-19 opportunities, diversify economy

Business
Participants at the Africa Initiative for Governance (AIG) webinar, have underscored the need for the government to leverage opportunities presented by the COVID-19 pandemic and diversify the economy, and spend wisely. AIG, a not-for-profit founded to inspire the transformation of Africa’s public sector, in collaboration with the Blavatnik School of Government, University of Oxford, hosted a virtual discussion on COVID-19, themed: “COVID-19 and the Oil Price Crash: Nigeria’s Tough Choices.” The stakeholders argued that the time is ripe for the country to focus on encouraging growth in the informal sector to boost the economy. They pointed out that COVID-19 has brought about many changes to the fabric of every society, restricting business activities, and causing lo...

Notice: ob_end_flush(): failed to send buffer of zlib output compression (0) in /home/insidebu/public_html/wp-includes/functions.php on line 5107