Christmas is finally here with a stronger naira<\/em><\/strong><\/p>\nThe Nigerian market is going through dramatic changes while simultaneously transitioning into a market-driven economy. This Christmas, like many before, we have seen volatile commodity prices and significant changes in consumer behavior. PMI is contracting, and GDP is expanding.<\/p>\n
PMS prices have declined by 12% from \u20a61,065 per litre to \u20a6940 in the Lagos Metropolis, driven by the recent price war between Dangote Refinery (price leader) and NNPC (price follower). Additionally, the naira has gained 0.48% this week to trade at N1,652\/$ at the parallel market. This follows the CBN\u2019s introduction of weekly FX sales of $25,000 to Bureau De Change Operators from December 19th<\/sup> at prevailing market rates.<\/p>\nThe expected increase in forex supply will likely alleviate demand pressures on the naira at the parallel market. However, the CBN\u2019s policy, which expires on January 30, 2025, is temporary, raising concerns about speculative hoarding and a potential return to volatility once supply becomes constrained.<\/p>\n
On the Right Track: Rail Infrastructure could alleviate Housing and Transportation Crises <\/em><\/strong><\/p>\nNigeria\u2019s urban housing crisis and strained transportation network are two interconnected infrastructure challenges that a robust rail system can address simultaneously. As rents in cities like Lagos, Abuja, and Port Harcourt skyrocket, suburban areas offer affordable alternatives. However, the lack of efficient transportation prevents many from making this shift. Affordable, fast rail connections would reduce the demand for urban housing by enabling workers to live in less costly suburbs while accessing city jobs. This would ease pressure on city-center rents and promote suburban development. Japan\u2019s Shinkansen lays a perfect model for Nigeria to emulate in developing modern rail systems, which offer a sustainable solution to Nigeria\u2019s housing and transportation woes while driving economic growth and improving quality of life.<\/p>\n
In this latest edition of Whispers, the FDC Think Tank takes a deep dive into recent economic developments and their impact on your business and corporate strategy.<\/p>\n
Enjoy your read![\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"
[vc_row][vc_column][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Dear Subscriber, Christmas is finally here with a stronger naira The Nigerian market is going through dramatic changes while simultaneously…<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,35],"tags":[],"_links":{"self":[{"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/posts\/122296"}],"collection":[{"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/comments?post=122296"}],"version-history":[{"count":1,"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/posts\/122296\/revisions"}],"predecessor-version":[{"id":122297,"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/posts\/122296\/revisions\/122297"}],"wp:attachment":[{"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/media?parent=122296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/categories?post=122296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/tags?post=122296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}