General News
Is Nigeria Exposed to the Emerging Market Chaos?
By Lukman Otunuga, Research Analyst at FXTM
It has certainly been an explosively volatile trading quarter thus far as investors juggled with global trade tensions, Dollar strength and chaos across emerging markets.
The simmering trade dispute between the world’s two largest economies fuelled global risk aversion while a brutal sell-off in the EM space rattled investor confidence.
With fears mounting over a full-blown trade war triggering global instability and negatively impacting growth, emerging markets especially remain under extreme pressure.
Fears remain elevated over the turmoil in Turkey and Argentina spreading like a virus across developing and developed nations.
With the South African economy already descending into a recession, will Nigeria be the next economy to take a hit?
Throughout the third quarter of 2018, Nigeria has kept afloat with GDP expanding 1.5% during Q2 and inflation easing 11.14%. Although the nation’s external reserve dropped to the lowest since March to $45 billion, it still remains at manageable levels.
With oil prices somewhat supported by geopolitics and the Naira displaying a degree of stability against the Dollar, the outlook looks somewhat encouraging.
However, external risks in the form of an appreciating Dollar, prospects of higher interest rates and trade tensions could cripple Nigeria’s fragile recovery.
Contagion fears stemming from the EM selloff may force investors to scale back on investing in emerging markets, including Nigeria, while capital outflows could complicate the Central Bank of Nigeria (CBN)’s effort to defend the Naira.
Although expectations were initially elevated over the CBN cutting interest rates in the second half of 2018 to stimulate growth, the current global and domestic economic landscape could force the central bank to maintain the status quo.
A CBN rate cut will widen the interest rate differential with the Federal Reserve, ultimately accelerating capital outflows and threaten price stability.
With inflation also expected to rebound thanks to election spending, some even feel the CBN may end up hiking rates instead.
Referring to price stability, the Naira, like most other emerging market currencies, remains impacted by external forces.
Although the local currency has barely budged against the Dollar, this is based on the CBN’s repeated intervention in the FX markets.
While this strategy could ensure the local currency remains supported in the short term, Nigeria’s external reserves are already feeling the pressure.
On the plus side, with Nigeria achieving a current account surplus, the Naira’s punishment may not be as severe as those currencies belonging to markets with a high account deficit.
Although Nigeria’s economic prospects remain tied to Oil prices, the upcoming presidential elections could play a leading role in determining if the nation is able to conclude this year on a firm footing.
The increased spending ahead of the February elections will most likely be a welcome development for economic growth.
If Oil prices remain at current levels and support both government revenue and consumption, this may stimulate the recovery further.
The largest economy in Africa still has the ability to shock the world stage this year.
While it is widely known that the cure to Nigeria’s illness – Oil dependency – can be found in economic diversification, the correct steps must be taken while the conditions are still accommodative.
As the third trading quarter of 2018 slowly comes to an end, global sentiment is likely to remain heavily influenced by U.S.-China trade tensions and the emerging market rout.
With the U.S. Federal Reserve expected to raise interest rates this month, the CBN’s effort to defend the Naira may be obstructed.
Chinonso Akujobi, former staff of Access Bank in Lagos, has been remanded in Ikoyi prison after she was arraigned on a five-count charge bordering on stealing to the tune of N294.5m.
Akujobi who is being prosecuted by the Economic and Financial Crimes Commission (EFCC) was arraigned before Justice I.O. Ijelu of the State High Court sitting in Ikeja, Lagos.
EFCC alleged that Akujobi stole the money between January and December 2025 while under the employment of Access Bank Plc.
As stated in one the charges, the defendant stole the money through unauthorized payments from the general ledger of Access Bank to her account number 0036668871 with the name Chinonso A., Uchechi A. and Florence A., thereby committing an offence of stealing, contrary to Section 280 and punishable under Section 287 of the Criminal Law of Lagos State, 2015.
The defendant pleaded “not guilty“ to the charges when they were read to her.
In view of this, S.M.Yabo, prosecution counsel, asked the court for a trial date and also prayed for the remand of the defendant in a Correctional centre.
Justice Ijelu, thereafter, adjourned the case till October 8, 2026, for the hearing of the bail application and the commencement of trial.
The Judge also ordered that the defendant be remanded in the Ikoyi correctional Centre.
The Nigerian Safety Investigation Bureau (NSIB) says the flight captain of the VMO Aero aircraft that landed on a roadway near Asaba Airport in Delta State told investigators that the observer pilot mistakenly identified the paved road as the runway before touchdown.
The bureau disclosed this in a preliminary report released on Thursday on the June 10 incident, which prompted the Nigeria Civil Aviation Authority (NCAA) to ground the private jet.
The aircraft had seven people on board, including the pilot-in-command (PIC), second-in-command (SIC), an observer pilot, a cabin crew member and three passengers.
According to the report, the aircraft was cleared by Air Traffic Control (ATC) to approach Runway 11 at Asaba Airport after the crew requested a right orbit.
The crew initially discontinued the approach, executed a missed approach and repositioned for a second landing attempt.
NSIB said the crew reported that the aircraft’s navigation systems indicated it was correctly established on the published RNAV Runway 11 approach.
“The PIC and SIC reported that the observer pilot identified the paved surface ahead as the runway,” the report stated.
However, the observer pilot gave investigators a different version of events.
According to NSIB, he said the aircraft remained inside cloud until late in the approach and that the Ground Proximity Warning System (GPWS) repeatedly issued “TERRAIN, TERRAIN, PULL UP” alerts.
He also said he observed a telecommunications mast directly ahead and instructed the flight captain to abandon the approach and climb immediately.
The bureau further disclosed that a cabin crew member reported that one of the passengers became concerned after overhearing discussions among the pilots and asked whether one of them was undergoing training. The passenger was reportedly reassured that all three pilots on board were experienced captains.
NSIB said no abnormal events were reported in the cabin before touchdown.
The aircraft eventually landed at about 8:57 a.m. on an under-construction paved roadway near Asaba Airport instead of the designated runway.
The bureau said its investigation into the incident is ongoing, while the preliminary report highlights conflicting accounts among the cockpit crew over the circumstances that led to the erroneous landing.
European Union has warned Meta Platforms Inc. that it could face a significant financial penalty unless it changes what regulators describe as the “addictive design” features of Facebook and Instagram.
The European Commission issued the warning in preliminary findings released on Friday, saying Meta had failed to sufficiently address risks posed by its platforms, particularly to children and vulnerable users.
The Commission said features such as infinite scrolling, personalised content recommendations and automatic video playback were designed in ways that encouraged excessive engagement with the platforms.
EU Executive Vice-President for Tech Sovereignty, Security and Democracy, Henna Virkkunen, said protecting the physical and mental well-being of European citizens should be a priority for social media companies.
The Commission said Meta should consider introducing design changes, including disabling autoplay and infinite scrolling by default, providing effective screen-time reminders and adjusting recommendation systems to reduce the focus on maximising user engagement.
The findings were issued under the European Union’s Digital Services Act (DSA), which sets obligations for major online platforms to address risks associated with their services.
Meta, however, rejected the Commission’s conclusions, saying it disagreed with the findings but would continue engaging with European regulators.
The company said it had already implemented measures aimed at protecting younger users, including Teen Accounts that allow parents to manage screen time limits and restrict access during night hours.
The EU said its investigation, which began in 2024, found that existing time-management tools on Facebook and Instagram could easily be bypassed, while parental controls required technical knowledge that limited their effectiveness.
Regulators also expressed concerns over children’s nighttime use of the platforms and the possibility that features such as Reels and Stories could encourage compulsive behaviour.
If the Commission’s preliminary findings are confirmed, Meta could face a fine of up to six per cent of its annual global revenue under the DSA.
The warning comes as the EU steps up efforts to strengthen online safety measures for children, with an expert panel established by European Commission President Ursula von der Leyen expected to present recommendations on protecting minors online.
Several EU member states, including France, have also supported discussions on restricting social media access for children, following Australia’s decision to ban users under 16 from accessing social media platforms.
Meanwhile, the Commission is continuing a separate investigation into whether Meta’s recommendation algorithms create “rabbit hole” effects by directing users towards increasingly extreme content.
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