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A Rough and Rocky Road Ahead for Nigeria’s Economy?

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By Lukman Otunuga, Senior Research Analyst at FXTM,

Africa’s largest economy commenced the final quarter by facing some of the biggest protests witnessed since military rule ended in 1999.

 

The protests boiled over during an already turbulent and rocky time not in the local but global economy. The cumulative effects of the COVID-19 pandemic lockdowns and other restrictions triggered a downturn together with a sharp increase in public debt. Given the resulting uncertainty from the protests, financial markets were spooked once again with the strong knock-on effects hitting Nigeria’s stock market and international bond while further clouding its economic outlook.

Before this development, the International Monetary Fund (IMF) projected a 4.3 percent contraction in GDP because of COVID-19. Depressed Oil prices enduring a prolonged lapse in demand has not helped matters with the aftermath of the protests projected to cost over N700-billion Naira in output – something that may drag on real GDP.

 

Inflation becoming a cause for concern

 

Nigeria has been scarred by three consecutive quarters of rising inflationary pressures, shaky economic fundamentals, Dollar scarcity and low Oil prices. A 24-hour curfew imposed on Lagos worsened the outlook for the already fragile economic landscape and local businesses which bore the marks of deep wounds from COVID-19. 

 

Inflation rose for 13 months straight, hitting 13.71 percent in September. Price increases were seen mainly in medical treatment, electricity, food supplies and passenger air travel but so far have not impacted the Oil industry. This is a welcome development given that Oil accounts for over 90 percent of export earnings and 70 percent of government revenues.

 

Banks clamp down on speculation

 

Focusing on the Naira, the banking system clamped down on speculation and limited foreign exchange transactions by individuals and corporations. The intention was to stabilise the currency which was at the centre of a perfect storm of low Oil prices, Dollar scarcity and a weaker economy.

 

The results of the foreign currency restrictions in the banking sector remain to be seen.

 

External pressures likely to influence outlook

 

Presidential elections in the US added to the uncertainty prevailing around Nigeria’s economic outlook, especially when it comes to Oil prices. According to national polls, Democrat challenger Joe Biden is leading the incumbent Donald Trump but electoral polls are the kind of forecast that can change last minute. Whatever the political race’s outcome, the result is critical for the US and global economy and may heavily influence the financial markets.

 

When it comes to Oil, Trump’s policy of backing the US Shale industry and ramping up US Oil production may fall by the wayside in the case that Biden wins the election. In turn, this could pressure global Oil prices and send them even lower. The downside scenario may weigh on Nigeria’s economy in spite of its efforts to diversify and reduce its reliance on the Oil industry.

 

A Trump win may increase confidence in the Oil markets in the short term but in the medium term, COVID-19 is still the main problem for Oil demand. OPEC forecasts lingering effects of COVID-19 on the Oil markets and in the long term, sees demand for the fossil fuel reduced by green and renewable energy sources like hydrogen.

 

Nonetheless, Oil will continue to have the largest share of the energy mix until 1945, according to OPEC.

In summary, Nigeria’s economy faces unprecedented headwinds in the fourth quarter and in the first quarter of 2021. The challenge is to get through the storm of a weakened economy facing internal and external threats and reach a place where there is smoother sailing. Now more than ever, it is important to keep diversifying the economy and make provisions for a calmer future where Nigeria can recover from its recent trials.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

General News

MTN Nigeria Takes Go MAD Campaign to The Entrepreneurial Hub of Aba

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MTN Nigeria is set to bring its Go Make A Difference (Go M.A.D) campaign to Aba, Nigeria’s renowned enterprise hub, on Sunday, March 23, at Sugarland, Luxury City Hotel.

This initiative continues MTN’s mission to inspire Nigerians to take deliberate steps toward community development and digital empowerment.

Speaking with the press at the campaign launch, Onyinye Ikenna-Emeka, Chief Marketing Officer of MTN Nigeria, shared the inspiration behind the Go M.A.D initiative. “At MTN, we believe in driving progress, giving our customers the power to rise above challenges and create something extraordinary. The Go M.A.D campaign is rooted in the belief that MTN data gives you the power to take on the world, to achieve the extraordinary, and to make a meaningful difference, in your community, your family, and your workplace. It’s our way of saying: we see you, we support you, and we’re here to make your journey better.”

Following exciting stops in Abuja, Enugu, Calabar, Ibadan, and most recently Benin, the campaign now heads to Aba with a promise to spotlight the city’s rich entrepreneurial spirit and creative talent.

In Aba, attendees can expect a thrilling fusion of technology, entertainment, and culture, with augmented and virtual reality zones, a flash mob, interactive games, special guests and inspiring real-life stories. The event will also feature Kahoot trivia games, a Go MAD puzzle, a pledge wall, and giveaways of MTN-branded merchandise and digital devices.

A highlight of this event will be the Talent Showcase, dedicated to spotlighting Aba’s emerging creatives and innovators. This platform provides local talents the opportunity to share their creative skills and connect with a broader audience.

Set against the backdrop of Aba’s reputation as a powerhouse of local industry and innovation, the event will celebrate individuals, known as Go MAD Icons, who are making a difference through MTN Data by driving social impact, growing businesses, or sharing knowledge digitally. These icons will serve as powerful reminders of what’s possible when creativity meets connectivity.

As with the previous activations in Abuja, Enugu, Ibadan, Calabar and Benin, cultural expression will remain central to the experience, with performances and installations that pay homage to the Igbo culture while encouraging young people to take positive action in their communities.

MTN’s Go MAD campaign is not just a series of events; it’s a national call to action. By merging storytelling, digital experiences, and grassroots inspiration, the campaign continues to engage Nigeria’s youth and highlight how technology can be a force for change.


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Dolphin Estate Goes Pro as FXTM Hosts Lagos Monthly Crit

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Cyclists, have the opportunity to gear up for an unforgettable racing experience! On Saturday, April 19th, FXTM proudly sponsors the Lagos State Monthly Crit at Dolphin Estate, Ikoyi – an event that promises speed, endurance, and the thrill of competition.

The day kicks off at 6:30 AM sharp with registration, setting the stage for an adrenaline-fueled main race starting at 7:30 AM. Over the course of four intense hours, cyclists will go head-to-head across three exhilarating categories: Professional, Junior, and Veteran. And for the champions? A cash prize starting at ₦800,000 awaits – a true reward for those who dare to push their limits.

It’s not just about the race – it’s about the experience. Expect a vibrant atmosphere with refreshments, music, and the perfect opportunity to mingle with like-minded cycling enthusiasts. Whether you’re a racer or a spectator, there’s something for everyone to enjoy.

Kelechi Ehibudu, Country Representative for FXTM, said said: “At FXTM we believe in unlocking potential and empowering individuals with ‘the freedom to succeed.’ Cycling, as a sport, perfectly captures this value – the freedom to ride, to push boundaries, and to achieve greatness. This event is part of FXTM’s global commitment to promoting fitness, well-being, and community engagement.

“We’re thrilled to bring this spirited race to Lagos. Cycling is not just a sport – it’s a celebration of determination, endurance, and the unyielding drive to succeed. It perfectly resonates with our mission to empower people to achieve their goals, both in trading and in life.”

The Lagos Monthly Crit is more than just a race – it’s a celebration of freedom, fitness, and community unity. Whether you’re competing for the prize or simply soaking in the energy of the event, this is an experience you won’t want to miss.


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QNET Denies Fraud Claims, Pledges Cooperation with EFCC Investigation

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QNET, a globally recognized lifestyle and wellness direct-selling company, strongly refutes allegations linking it to fraudulent activities following a recent operation by the Economic and Financial Crimes Commission (EFCC) Kaduna Zonal Directorate in Minna, Niger State.

The EFCC arrested 28 individuals allegedly involved in Ponzi schemes, claiming they operated from a three-bedroom apartment in Al-Bishiri Estate and were linked to QNET.

We categorically deny any association with these individuals or their illicit activities.

While the EFCC reported recovering QNET application forms and documents during the operation, we assert that these materials are likely forged or fraudulent, as QNET’s business operates exclusively on an e-commerce platform and does not utilize physical application forms.

These items were clearly misused by unauthorized parties exploiting our brand. QNET operates a legitimate and ethical direct-selling business model, empowering independent representatives to promote high-quality wellness and lifestyle products.

As a global leader in the direct-selling industry since 1998, QNET adheres strictly to local and international regulations, maintaining the highest standards of compliance and integrity.

Statement from QNET Leadership

Biram Fall, Regional General Manager for Sub-Saharan Africa, addressed the allegations: “We are deeply concerned by the rising trend of scams falsely linked to QNET, including fake investment schemes and fraudulent job offers.

“These malicious acts not only damage our reputation but also harm unsuspecting individuals by eroding their trust and finances.

“QNET condemns all fraudulent activities and is fully committed to working with authorities to ensure justice is served.

“We urge the public to remain vigilant and verify all QNET-related opportunities through official channels to avoid falling victim to such deceptive practices.”

QNET’s Ongoing Commitment to Anti-Fraud Advocacy

Since entering Nigeria in 2022 through our local partner Transblue Nigeria Limited, QNET has prioritized financial literacy and consumer protection.

In November 2023, we launched the Say NO! campaign to educate the public about scams and Ponzi schemes, collaborating with key stakeholders such as the Lagos State Consumer Protection Agency (LASCOPA) and the Federal Ministry of Labour and Employment.

This initiative has reached thousands across Nigeria and neighboring countries like Senegal and Burkina Faso through multilingual billboards, radio campaigns, educational pamphlets, and social media outreach.

These efforts underscore our dedication to empowering communities with the knowledge to distinguish legitimate QNET services from fraudulent schemes.

Full Cooperation with Law Enforcement

QNET is committed to supporting the EFCC’s investigation into this matter. We are actively cooperating with authorities to clarify the misuse of our brand and ensure that those responsible for these fraudulent activities are brought to justice. We encourage anyone with information about this case to come forward and assist in the investigation.

Public Advisory: How to Stay Safe

To protect yourself from scams misusing QNET’s name, we advise the following:
● Verify all information about QNET through our official website: www.qnet.net.
● Report suspicious activities to our dedicated team at [email protected] or via our WhatsApp hotline at +233256630005.
● Learn more about identifying and avoiding scams at www.saynocampaign.org

QNET remains steadfast in upholding the highest ethical standards in direct selling.

We call on the media and the public to verify facts before associating QNET with unverified claims, as such misinformation can unfairly damage our reputation and the trust of our stakeholders.

For further details about QNET’s business, products, and anti-fraud initiatives, please visit www.qnet.net.


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