Dear Subscriber,

Oil recovers from previous-day losses

Brent traded flat at the $80pb range ($80.62pb) today ahead of OPEC+’s meeting later this week (November 30). During the trading period, supply concerns stemming from the drop in Kazakhstan’s oil output were balanced by easing conflict in the Gaza Strip. Moreso, the rise in Nigeria’s oil production to 1.45mbpd in Q3’23 from 1.22mbpd in Q2’23 and the proposed commencement of refinery operations at the Dangote refinery could bolster Nigeria’s export earnings.

Bread has become food for the elites

Bread prices in the country have doubled to N1,200 (big loaf) in the past year despite declining global wheat prices (27% down YTD).  This is due to the continuous weakening of the naira in the forex market and the rising cost of other inputs, such as sugar. YTD, the naira has depreciated by 36.2% to close at N1,160 (parallel market), while the global price of sugar has climbed by 34.23% to $26.90/pound. In the medium term, the government’s initiative to support more than 250,000 farmers by implementing a 50% input subsidy for wheat production could potentially reduce the price of bread in the country.

These and other burning economic issues were discussed on the Business Morning programme on Channels TV by FDC’s Managing Director, Mr. Bismarck Rewane.

Click the link to watch the video.

Enjoy your read!