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Brent gains as supply concerns deepen

Brent futures rose by 0.90% to $78.85pb on Thursday after falling below the budget benchmark level of $77.96pb in the previous session. The rise in oil prices was driven by intensified conflict in the Middle East as Houthis struck down a US owned commercial vessel. However, with Brent futures still hovering around $78pb and below the $80pb resistance point, concerns about Nigeria’s fiscal imbalances and budget implementation will persist.

Nigeria Headline inflation surges to a 27-year high of 28.92% in December

Nigeria’s headline inflation climbed to a 27-year high of 28.92% in December 2023, 0.72% higher than November’s headline inflation of 28.20%. The increase was driven by the constant depreciation of the naira, and higher logistics costs due to the reduction of the PMS subsidy, increasing commodity prices. The Y-o-Y increase of 39.33% in money supply growth, further exacerbated inflationary pressures.

The persistent rise in Nigeria’s inflation rate increases the possibility of another rate hike by the MPC during its next meeting.  However, there is a need for the monetary policy and the fiscal policy to align to achieve macroeconomic stability.

These and other burning economic issues were discussed on Channels TV Business Incorporated Programme by FDC Research Manager, Dr. Adesola Sunmoni

Click the link to watch the video.