Sub-Saharan Africa growth resilient to lower oil prices in 2015 – Fitch

In its latest sub-Saharan Africa (SSA) Credit Overview released December 16, 2014, Fitch Ratings says that it expects average GDP growth of 5 percent in 2015, for the 18 countries rated by the agency, up from 4.5 percent in 2014.

Growth will not be evenly spread across the region but should be resilient to lower oil prices.

Countries’ ability to grow will be impacted by their degree of commodity dependence, exposure to China, domestic challenges and capacity to invest.

Growth in Nigeria, Sub-Saharan Africa’s largest economy, has been revised down from

Russians flock to stores to pre-empt price rises

Russian consumers flocked to the stores Wednesday, frantically buying a range of big-ticket items to pre-empt the price rises kicked off by the staggering fall in the value of the ruble in recent days.

As the Russian authorities announced a series of measures to ease the pressure on the ruble, which slid 15 percent in the previous two days and raised fears of a bank run, many Russians were buying cars and home appliances in some cases in record numbers before prices for these imported goods shoot higher.

The Swedish furniture giant IKEA already warned Russian consumers that

Russia plans new measures to stabilise the rouble

Russia is planning new measures aimed at stabilising its financial markets after the rouble's slump against the dollar.

The country's central bank said that if necessary, it would provide additional capital to Russia's banks and financial companies.

It also said it would hold more foreign exchange auctions if needed.

Russia's rouble has regained ground from Tuesday's all-time low, although trading remains edgy and volatile.

It extended its gains against the dollar after the

Falling oil price sets up winners and losers amid economic turmoil

Plunging oil prices are not proving a sole negative for the Nigerian economy, as new investors prepare to capitalise on cheaper assets amid an economic turmoil that threatens to bankrupt at least five states.

From bankers to oil barons and profligate Nigerian state governors who refused to save for the proverbial rainy day, the 45 percent slump in crude oil this year presents opportunity as well as pitfalls.

“Nigerian oil assets are much cheaper now and present a good time to

Oil keeps sliding on oversupply fears

The price of oil has hit another five-year low as fears of oversupply continue to mount.

Brent crude was down $1.77 at $67.30 a barrel in Monday afternoon trading, having earlier hit $66.77 - its lowest since October 2009.

US crude was down $1.44 at $64.40, after falling as low as $64.14.

Morgan Stanley predicted that Brent would average $70 a barrel in 2015, down $28 from a previous forecast, and be $88 a barrel in 2016.

The investment bank also said that oil prices could fall as low

FG: Solid Minerals Can Save Nigeria from Dwindling Oil Fortune

As crude oil price continues to nose-dive, the federal government has said the much-needed diversification of the economy from oil can be achieved with deliberate commitment to utilising the mass deposit of solid minerals in virtually every state in the country.

Speaking during his opening remarks at a three-day professional development workshop for mining engineers in Nigeria taking place in Jos, Plateau State capital, the Minister of Mines and Steels Development, Musa Mohammed Sada, said

New trade policy will help diversify Nigeria’s economy

The Head, Trade Policy and Facilitation, German Development Cooperation (GIZ), Mr Alexander Werth, said on Thursday that Nigeria was on the verge of diversifying its economy with new trade policy.

Werth told the News Agency of Nigeria (NAN) on Thursday in Abuja that Nigeria would overcome dependency on oil to earn foreign exchange as it diversified into industry and agribusiness.

According to him, the new trade policy is trying to ensure that Nigeria moves away from oil to non-oil sectors.

“This dependency on oil revenue can be reduced by diversifying the Nigerian economy and I think this is what the trade policy is trying to do. To move away from oil to the

Obama’s shale subsidy means more stress for Nigeria

If predictions by analysts that the United States of America (USA) would subsidise her shale oil producers to prevent them from bulking under current falling oil prices materialise, Nigeria may be in for a longer crisis, economic and policy watchers said last night.

The Obama government is believed to be working hard to achieve energy self-sufficiency, a national security issue for the US.

The analysts also say that the Federal Government’s current austerity measures and monetary tightening may

Brent rebounds above $71 in turbulent oil market

Brent rose to $71 a barrel yesterday, recovering some of its losses from the previous session as a turbulent market searched for a price floor after a nearly 40 percent fall since June. Oil has seen choppy trade since the Organisation of the Petroleum Exporting Countries (OPEC) said last week it would not lower output despite an oversupplied market.

Brent hit a five-year low below $68 a barrel on Monday after averaging around

Nigeria faces N1.3 trillion spending gap at $70 oil

Nigeria faces the negative prospects of a N1.3 trillion cut in government spending next year, if oil prices trade at an average of $70 per barrel in 2015, unless the government chooses to spike bond issuances and widen the deficit to maintain spending close to this year’s level.

With Brent crude averaging $103 dollars per barrel so far in 2014, Nigeria’s gross Federal Account Allocation Committee (FAAC) budgetary disbursements to the three tiers of government was equivalent to N6.359 trillion between January and October 2014.

Nigeria’s Bonny Light trades at a slight premium to Brent.

Calculations show that

Oil Shock: FG Moves to Shore Economy with Building, Construction Industry

The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, and her counterpart in the ministry of Housing, Land and Urban Development, Mrs. Akon Eyakenyi, on Thursday urged stakeholders in the housing and construction sector to use the opportunities in the sector as a catalyst to drive the economy.

Okonjo-Iweala pleaded with stakeholders to

Russia warns of recession in 2015

The Russian government has warned the economy will fall into recession next year as Western sanctions, in response to its role in eastern Ukraine, and falling oil prices begin to bite.

Russia's economic development ministry estimates the economy will contract by 0.8% next year.

It had previously estimated the the economy would grow by 1.2% in 2015.

Russia's reliance on tax revenues from the oil industry makes it particularly sensitive to price movements.

Household disposable incomes are also forecast to decline by as much as 2.8%, compared with a previous estimate that they would grow by 0.4%.

The sharp revision in Russia's economic forecast is the

Rouble falls as oil price hits five-year low

Oil prices fell to a five-year low on Monday, sending the rouble tumbling, while fears over slowing manufacturing activity in Europe and China undermined global confidence.

The Russian currency slid as much as 6% against the dollar to a new record low.

The rouble was on track for its biggest one-day fall since Russia's 1998 currency crisis.

Brent crude sunk as low as $67.53 a barrel, the cheapest it has been since October 2009.

It later regained some ground to trade just above $70 a barrel, while US crude was at $66.34 a barrel, having hit an intraday low of $63.72 - the lowest since July 2009.

Oil prices have fallen by more than

NDIC: Banks Can Withstand Impact of Oil Price Decline

The Managing Director of the Nigeria deposit insurance corporation (NDIC) Alhaji Umaru Ibrahim has disclosed that Nigerian banks can survive the impact of the current falling price on the economy.

Ibrahim also said with the federal government’s response to the situation, banks would emerge even stronger after the challenges.

Speaking yesterday at the 35th Kano International Trade Fair held, the NDIC boss, represented by the Director Assets Management, Alhaji  Bashir Dada assured depositors that

Weak oil prices present business case for eliminating fuel subsidy

The current oil price volatility that has seen the price of crude oil in the international market drop to $78 per barrel, presents Nigeria a rare opportunity to remove the entire controversial and highly abused fuel subsidy regime in the country. This was part of the emerging consensus among over 150 participants at a BusinessDay conference in Lagos yesterday.

The conference  discussed the impact of falling oil price on the Nigerian economy. Imo Itsueli, former NNPC chairman, was the moderator, while speakers included Bismark Rewane, CEO of Financial Derivatives, Ayo Teriba, CEO of Economic Associates and Mansur Ahmed, a director  with Dangote Group. Others were Muda Yusuf, director-general of the Lagos Chamber of Commerce and Industry (LCCI), Obafemi Olawore, executive secretary of Major Oil Marketers Association of

Onyema: Stocks Cheap on Foreign Investors’ Exit

Foreign investors fleeing Nigeria as oil prices plunge are leaving stocks undervalued in Africa’s biggest economy, the bourse’s chief executive officer, Mr. Oscar Onyema has said.

The benchmark index’s 18 per cent decline this year isn’t justified by economic changes and as a result Nigerian equities are “effectively on sale,” Oscar Onyema said in an interview with Bloomberg in Diani, Kenya.

“The fundamentals demand higher valuations.”

Nigerian stocks dropped as crude slid into a