Dear Subscribers,
Welcome to the PRISM (BIZNOMICS)!
Change is constant, and innovation unlocks new value. The goal at every phase is to birth new products or re-invent old ones. We align with both in our journey of reinvention and innovation. This includes the birthing of more than one poster child to bring quick bites of insightful economic analysis covering the global, regional, and domestic landscape.
Today, we launch the maiden edition of the FDC PRISM (BIZNOMICS): a cocktail of recent global and domestic economic events, a corporate focus, and an outlook for the next month. Here’s a prelude to what we have encapsulated in this PRISM:
The swinging Naira – what next?
In 1986, the exchange rate was a mere N1 to $1, but fast forward to 2023, and we’re talking about nearly N1000 for $1 (currently trading at N915/$). This means that the Naira has taken a nosedive of about 2700% over the past 37 years. Despite the different exchange rate systems adopted, currency challenges still persist, attributable to forex shortages. Lately, the Naira has been swinging back and forth like a yo-yo, especially since the forex market reforms. This has triggered a wave of questions about Nigeria’s currency strategy and left market players pondering. What’s the real game plan for managing the currency, and where does the Naira’s fair value truly lie?
Food insecurity – Empty plates echo
In spite of the N5bn palliatives to the state governments, food insecurity remains a cankerworm, eating deep into Nigeria as food availability and affordability concerns linger. Food inflation has climbed to an 18-year high of 26.98% as of July’23, intensifying the cost of living crisis. According to the FAO, a staggering 25.3 million individuals in Nigeria are projected to experience acute food insecurity during the lean season of June 2023 to August 2023. To solve this, the government needs a balanced cocktail of comprehensive measures to tackle insecurity and food shortages.
In this maiden edition of the FDC Prism, the Think Tank delves into an in-depth analysis of recent economic developments and their wide-ranging impacts on households and businesses.
Enjoy your read!
