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Higher US Interest Rates Burn through Nigeria’s Reserves

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By Lukman Otunuga, Research Analyst at FXTM

 

Defending the Nigerian Naira against the mighty Dollar has come at a steep price to the central bank of Nigeria in the form of falling reserves.

Nigeria’s foreign exchange reserves have declined by roughly $2.1 billion in the last 30 days thanks to a broadly stronger Dollar and prospects of higher US interest rates. With the Fed expected to raise interest rates again in December, reserves are seen falling even further on the widening interest rate differentials between both central banks. If the Oil bull rally sputters and government revenues in Nigeria end up thinning, protecting the Naira could become increasingly complicated and strenuous for the central bank

 

Week ahead: Italian budget, ECB meeting & US GDP in focus

Asian shares were mostly higher this morning as Chinese indexes rallied more than 4% on verbal support from the country’s top officials.

Although the positive momentum from Asia has seeped into European markets, gains remain threatened by fragile risk sentiment. With investors bombarded by geopolitical factors such as trade tensions, Italy’s budget woes and Brexit-related uncertainty, caution is set to prevail this week. Global equity bulls still have an opportunity to re-enter the scene on the back of robust corporate earnings. However, expectations of higher US interest rates, global growth fears and geopolitical tensions all present downside risks to equity markets across the world.

 

Trade tensions sizzle in the background

US-China trade developments were back in focus following reports of White House economic advisor Larry Kudlow accusing Beijing of doing “nothing” to ease trade disputes ahead of a G20 meeting in Argentina next month.

This development has not only reduced optimism over the United States and China finding a middle ground on trade but raised prospects of the US next year boosting the tariffs on $200 billion of Chinese imports from 10% to 25%.

With a full-blown trade war between the world’s two largest economies presenting a significant threat to global growth and stability, sentiment is poised to remain fragile.

 

Markets eye Italy budget

Italy’s budget woes with the European Union enters a critical phase today as Rome faces a noon deadline to explain why it is in breach of EU fiscal rules. With the Italian government bracing for the EU to reject its 2019 budget on Tuesday, the Euro is likely to take a hit. Uncertainty in Italy remains one the major geopolitical factors weighing on global sentiment and denting investor confidence.

 

ECB meeting on Euro’s radar

All eyes will be on this week’s European Central Bank meeting which is expected to conclude with monetary policy left unchanged.

With no rate moves expected, investors should not be quick to label this meeting as a non-event. Given the growing uncertainty revolving around the political situation in Italy, there will be an extra focus on Mario Draghi’s press conference. It will be interesting to hear Draghi’s thoughts on the developments in Italy and possible impacts they may have on the Eurozone economy. If the central bank head strikes a cautious and dovish tone, the Euro will most likely depreciate.

Taking a look at the technical picture, the EURUSD is trading back above the 1.1520 level this morning on the back of Dollar weakness. Intraday bulls could push the currency pair towards 1.1580 in the near term.

 

Focus on US Q3 GDP growth

The main event risk in the United States this week will be the first reading of third quarter GDP data scheduled for release on Friday. US economic growth is expected to have expanded 3.3% during the third quarter of 2018, slower than the 4.2% achieved in Q2. An upside surprise on GDP growth has the potential to boost buying sentiment towards the Dollar and reinforce market expectations of higher US interest rates.

 


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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

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More 14m Farmers to Benefit from AfDB-backed Initiative

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Additional 14 million farmers in 37 low-income and vulnerable countries served by the African Development Fund, the Bank Group’s concessional financing window, are set to benefit from a technology initiative targeted at scaling up climate-resilient food production across the continent.

This comes after the African Development Bank Group (AfDB) and the International Institute of Tropical Agriculture (IITA) signed a $16.61 million grant agreement to launch the third phase of the Technologies for African Agricultural Transformation Programme (TAAT-III)

TAAT-III, funded by the African Development Fund, is expected to consolidate earlier gains benefiting 14 million more farmers while introducing a more sustainable, private sector-driven delivery approach.

AfDB said the initiative aims to reinforce seed and technology distribution systems, deepen partnerships with governments and agribusinesses, and expand the digital tools, including its technology e-catalogues and real-time monitoring platforms, to speed up deployment of high‑impact solutions.

Simeon Ehui, director general of IITA, commented: “TAAT-III allows us to deepen the delivery of science‑based solutions that improve farmers’ yields and livelihoods. Working with the Bank and our partners, we are scaling technologies that make Africa’s food systems more resilient and competitive.”

Since its launch in 2018, TAAT has become one of Africa’s most effective and transformative platforms for agricultural innovation, reaching nearly 25 million farmers and boosting productivity across major staples.

The initiative has expanded climate-resilient agricultural practices across over 35 million hectares.

In a statement, the AfDB said working closely with the Consultative Group of International Agricultural Research Centres and national and regional partners, TAAT has increased crop yields up to 69% and generated more than $4 billion in additional agricultural value.

Countries including Sudan, Ethiopia, Zambia, Zimbabwe, and Nigeria have recorded notable gains in staple crop productivity and resilience to climate shocks.

Nigeria has been a key beneficiary of TAAT initiatives. Under its Wheat Compact, farmers adopting improved heat-tolerant varieties more than doubled yields from 1.7 tons per hectare to 3.5 tons per hectare.

Programme supported seed system assessments also helped inform national reforms to expand access to certified, climate-resilient seeds.

Speaking at the signing ceremony, Abdul Kamara, director general of the Bank Group’s Nigeria Country Department, said the new phase will focus on scaling innovation more rapidly

Kamara said: “TAAT-III underscores the Bank’s commitment to ensuring that proven, climate-resilient agricultural technologies reach farmers faster and at scale. This phase strengthens the systems that deliver innovation, helping countries boost productivity, enhance resilience, and align agricultural transformation efforts with the Bank’s four new areas of emphasis, dubbed the Four Cardinal Points.”

 


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Newmark Webinar Explores How AI Could Transform Healthcare in Africa

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A recent webinar hosted by the Newmark Group examined how Artificial Intelligence AI is changing healthcare across Africa, highlighting both its promise and its risks.

Newmark Webinar Explores How AI Could Transform Healthcare in Africa

Newmark

The session, titled “AI in Healthcare: Opportunities and Challenges,” brought together healthcare and communications experts who agreed that AI can help fix long-standing problems in Africa’s health systems — but only if it is used carefully and responsibly.

Gilbert Manirakiza, CEO of Newmark Group in his opening speech said that AI is already helping speed up decision-making. He said AI tools can quickly analyse patient feedback, monitor conversations online, personalise health messages for different audiences and reduce delays in approvals.

He noted that many patients now turn to AI tools like ChatGPT to ask about symptoms and treatments. Because of this, he said health communicators must take responsibility for ensuring accurate information is available.

“If AI makes mistakes in healthcare, the consequences affect real lives,” he said.

Manirakiza stressed that Africa’s healthcare environment is unique. Many communities rely on mobile phones, speak different local languages and trust religious or community leaders. He warned that AI systems built mainly with Western data may misunderstand African realities.

He summarised his position simply: AI should help speed up work, but humans must ensure accuracy.

Daniel Marfo spoke about how AI is already being used in practical ways. Insurance companies now use AI systems to process thousands of claims daily. In hospitals, electronic medical records can suggest possible diagnoses and help doctors decide which patients need urgent attention.

He also said AI tools are helping detect problems in X-rays and MRI scans faster, especially in places where there are few radiologists. This reduces waiting time for patients.

At a national level, countries such as Rwanda, Sierra Leone and Ghana are building health data centres powered by AI to help governments track diseases and plan better responses.

However, Marfo warned that AI tools must be built using local medical guidelines to gain doctors’ trust. He emphasised that AI should support doctors, not replace them.

Dr. Afriyie Bempah focused on how AI can help countries prepare for health crises before they happen. He said resilience is not just about recovering from shocks, but about predicting them early.

He cited examples such as Kenya using AI to track mosquito patterns to predict malaria outbreaks, and Ghana using digital tools to improve disease reporting. In South Africa, digital health systems have been adapted to manage patients with chronic illnesses remotely.

He explained that linking clinics, pharmacies and supply chains through data sharing can help detect disease trends early and prevent large outbreaks.

During the question session, speakers discussed challenges such as data privacy, incorrect AI outputs, biased systems, and resistance from some healthcare workers.

They recommended clear rules for AI use, fact-checking AI-generated information, and creating internal review teams to monitor its application.

In their closing remarks, the panel encouraged healthcare professionals to learn how to work with AI tools to improve efficiency. They also urged young Africans to see healthcare technology as a major opportunity for innovation and investment.

The webinar concluded that AI is here to stay in healthcare. But its success in Africa will depend on strong regulation, local adaptation and continued human oversight — especially in a sector where mistakes can cost lives.


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Conoil Bonanza Winners Emerge

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Conoil Plc is spreading joy this Valentine season as the first group of winners in its Valentine Bonanza promotion have been announced and rewarded. Launched on February 14, the campaign continues to delight customers at participating retail outlets.

The initial raffle draw, conducted on February 21, saw fortunate customers receive ₦10,000 worth of free petrol each. The draw was carried out publicly, with media representatives present to ensure full transparency. With the promotion still ongoing, more customers have the opportunity to join in and potentially be among the next winners.

A Conoil Management spokesperson explained that the initiative is a way to show appreciation to loyal customers for their ongoing support. “Our customers have responded impressively to the bonanza, with strong participation recorded across our stations,” the spokesperson said.

The second and final phase of the promotion is now in motion. Customers who purchase at least 10 litres of petrol at any participating Conoil station remain eligible to win in the grand finale raffle.

The grand finale is set for February 28 at 12 noon. Motorists in Lagos and Ogun states are encouraged to visit Conoil outlets to collect their tickets and take part in the exciting conclusion of this Valentine celebration.


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