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NSE Index Dips, Oil Wobbles while Dollar Smiles 

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By Lukman Otunuga, Senior Research Analyst at FXTM,

Trading on the Nigerian Stock Exchange (NSE) maintained a lackluster mood on Wednesday with the All-Share Index dipping 0.17 percent, thanks to a decline in banking stocks.

 

One of the biggest losers was Royal Exchange Plc which declined 10% to trade around 0.27 Naira as of writing. Given the ongoing uncertainty presented by COVID-19, and recent depreciation in Oil prices primarily fueled by signs of the coronavirus fallout weighing on the energy sector, appetite towards local stocks may remain muted.

 

South Africa publishes shocking GDP data

 

Words fail to describe South Africa’s shocking and surreal gross domestic product data for Q2.

 

Economic growth contracted by a heart-stopping 51% q/q during the second quarter of 2020 thanks to the impacts of lockdown restrictions since the end of March 2020. This is the steepest decline since 1990 and raises concerns over the outlook for Africa’s most industrialized nation. It must be kept in mind that South Africa was already in a vulnerable situation before the coronavirus menace sunk its poisonous fangs into core services and sectors. The negative impacts continue to be reflected in economic data, as the country struggles to nurse deep wounds inflicted from tough lockdowns and rising coronavirus cases.

 

Expectations are set to mount over the South African Central Bank cutting interest rates for the sixth time this year to jumpstart economic growth. Given how inflationary pressures remain muted with consumer prices around 3.2%, this offers the SARB enough breathing room pull the rate cut trigger potentially in September or November. The key question is whether lower interest will breathe life into an economy entangled in a fierce battle against multiple risks. As of now, South Africa is predicted to experience its worst economic contraction since the Great Depression in the 1930s.

 

Despite all of this negativity, the Rand is standing tall against the Dollar and other G10 currencies today. It has even appreciated across the board since the start of September and has offered a mixed performance across the FX space quarter-to-date.

 

The South African Rand remains influenced by external drivers in the form of COVID-19 developments, US-China trade and global sentiment. If the market mood improves this week and investors able to shake concerns over possible a delay in the COVID-19 vaccine, this may bode well for the Rand.

 

Dollar bulls stage a comeback

 

After being badly mistreated by G10, Asian and Emerging market currencies over the past few months, the Dollar has had enough.

 

The former king of the currency markets is on a mission to reclaim dominance, appreciating across the board after a sell-off in stock markets prompted investors to rush towards safe-haven destinations. Dollar bulls seem to be deriving strength from not only concerns over a possible delay in the Covid-19 vaccine but the recent U.S jobs report showing a decline in the U.S unemployment rate and jump in U.S Treasury yields.

 

With the Dollar Index trading at levels not seen in four weeks around 96.30 and appreciating over 1.5% since the start of September, are bulls back in the game?

 

Looking at the technical picture, a rebound may be on the cards on the weekly timeframe following the solid move above 93.00. A weekly close beyond this point could suggest an incline towards 94.00 and 96.00 in the medium term.  If 94.00 proves to be reliable resistance, the DXY may find itself sinking back towards 93.00 and 91.15.

 

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On the daily timeframe, prices remain in a wide range with support at 92.20 and resistance around 94.00. A daily close above 94.00 could inject bulls with enough inspiration to target 94.65 which then opens the doors towards 93.00 and beyond.

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The question on the mind of many investors is whether the Dollar is able to maintain this current burst of confidence and majesty across the FX space. Although the currency is still considered as a safe-haven currency and the worlds reserve currency, it has weakened against every single G10 currency this quarter.

 

Negative themes in the form of rising coronavirus cases in the United States and political uncertainty ahead of Novembers presidential election may limit the Dollar’s upside gains. Given the fundamental forces influencing the Dollar’s longer-term outlook, prices still have the potential to decline with a move below 92.00 on the monthly timeframe acting as an early signal.

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Kuwait Busts Nigerian Cybercrime Ring Targeting Telecom Tower, Banks

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Kuwait’s Criminal Security Sector has dismantled an international cybercrime ring composed of Nigerians responsible for coordinated attacks on telecommunications towers and banks, the Ministry of Interior announced on Sunday.

Kuwait Busts Nigerian Cybercrime Ring Targeting Telecom Tower, Banks

According to Arabic-language daily Al Qabas, the case was initiated after the Communication and Information Technology Regulatory Authority reported cyber intrusions targeting local telecom networks.

Specialised security teams quickly launched an investigation, discovering that the suspects used advanced electronic devices to breach networks and distribute mass phishing messages impersonating banks, aiming to steal account information and siphon funds.

Signal-tracking technology led investigators to a vehicle in the Salmiya area.

When authorities attempted to stop the vehicle, the driver tried to flee, colliding with several cars before being apprehended following a fierce struggle.

A search of the vehicle uncovered sophisticated electronic equipment and various technical tools.

Upon investigation, the suspect confessed to collaborating with an accomplice to hack telecom networks and send fraudulent messages posing as banks and telecommunications companies.

Police subsequently located and arrested the second suspect, and a search of their residence uncovered additional devices used to analyse the stolen data.

Both suspects, along with the seized equipment, have been handed over to the relevant authorities for prosecution.

The Ministry of Interior reaffirmed its commitment to protecting the nation’s cybersecurity and intensifying efforts to combat electronic fraud targeting both citizens and residents.


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Nigerian Scientists Await Return of Egusi Seeds Sent to Space

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Space in Africa, the Lagos-based firm Oniosun founded, is expecting its Egusi melon seeds to splash down in the Pacific Ocean Saturday—fresh from a trip to the International Space Station.

Nigerian Scientists Await Return of Egusi Seeds Sent to Space

Once Earthside, experiments will begin on what is being hailed as the first food native to West Africa to be sent to space.

As Oniosun told AFP on Friday, it could herald an era where space exploration reflects the planet’s diversity.

“When we talk about humans colonizing other planets, this is not just an American mission or a European mission—this is a global mission,” he told AFP.

And future African space explorers might enjoy a taste of home.

Experiments on extraterrestrial food, which is to say tested in space, have been going on for years.

Growing food in space is seen as a crucial part of long-distance space flight and long-term missions, where frequent resupply won’t be feasible.

Scientists at the University of Florida in the United States, and the International Institute of Tropical Agriculture, in the southwestern Nigerian city of Ibadan, will examine the seeds “to see the effects of exposure to space” and zero gravity, including on the seeds’ DNA.

Once planted, researchers will monitor their post-space performance and germination.

The seeds went up to the ISS on a SpaceX flight last week, as part of NASA’s partnership with private firms.

Oniosun said the inclusion of Egusi seeds marked an important step forward, both for those on Earth as well as future astronauts.

High in protein, they are typically used to prepare soups and stews across West and Central Africa.

Africa’s most populous country has a small space industry, but the launch of the seeds seemed to generate more excitement on social media and in newspapers than previous launches of Nigerian satellites, he said.

“The moment that we’re sending food that they love, a food that holds significant cultural contexts to Nigeria… everybody starts getting interested in the subject,” Oniosun told AFP.

“The launch of Egusi melon seeds into space is more than a symbolic gesture,” he added.

“The future of humanity among the stars must reflect the diversity and richness of life on Earth.”

Whether pounded yam—the key dish served alongside Egusi soup—will make its way to the final frontier remains to be seen.

 

 


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NITDA Deepens Digital Gender Inclusion with IgniteHer Bootcamp

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In a powerful demonstration of its commitment to the Renewed Hope Agenda of the present administration of President Bola Ahmed Tinubu GCFR, the National Information Technology Development Agency (NITDA) has launched the second cohort of the IgniteHer Bootcamp for Women Entrepreneurs, a strategic initiative aimed at accelerating gender inclusion and economic empowerment through digital innovation.

The bootcamp, themed “Empowering Women Entrepreneurs for Growth and Innovation”, was launched in partnership with the Japan International Cooperation Agency (JICA) and brought together selected women entrepreneurs from across Nigeria, both physically and virtually, for rigorous training in digital skills, innovation management, business development, and investor readiness.

The NITDA Director General, Kashifu Inuwa CCIE, who declared the bootcamp open, reaffirmed the Agency’s role in aligning Nigeria’s digital development with the national priorities of reforming the economy for sustained inclusive growth and accelerating economic diversification through industrialisation and digitisation.

“Through IgniteHer, we are actualising President Bola Ahmed Tinubu’s Renewed Hope Agenda by expanding women’s access to technology and economic opportunity,” he stated.

The DG, who was represented by the agency’s Acting Director of the Digital Literacy and Capacity Building department, Dr. Ahmed Tambuwal, noted that inclusive innovation is a cornerstone of NITDA’s Strategic Roadmap and Action Plan (SRAP 2.0: 2024–2027), which supports national aspirations for inclusive growth, poverty eradication, and youth empowerment.

“We are not merely imparting skills; we are creating self-reliant entrepreneurs, change-makers, and leaders,” he added.

Inuwa disclosed that the IgniteHer Bootcamp is also a key component of the National Gender Digital Inclusion Strategy (NGDIS), through which NITDA is working to empower 12.7 million Nigerian women with digital literacy skills by 2027. He averred that the programme complements broader government efforts to bridge gender gaps, enhance productivity, and reduce unemployment, especially among young women.

Citing a report by the World Wide Web Foundation, the DG emphasised that closing the digital gender gap in Nigeria could unlock an estimated $13 billion in GDP growth over the next decade.

“This training is a step towards harnessing this economic potential and ensuring that women play an integral role in shaping the digital landscape of Nigeria,” he noted.

He therefore called on participants selected from over 12,000 applicants to seize the moment and shape the future of Nigerian entrepreneurship.

While highlighting NITDA’s leadership in strategic partnerships, the DG commended JICA and the Government of Japan for their ongoing collaboration in supporting digital empowerment through programmes like IgniteHer and the iHatch Incubation Programme, which provides startup support, mentorship, and innovation development to early-stage entrepreneurs.

“At NITDA, we believe that inclusive innovation is not just an ideal but a critical strategy that ensures the growth of a stronger economy, the development of smarter solutions, and the existence of more resilient communities. Through IgniteHer, we are dismantling barriers and replacing them with pathways to opportunity,” he concluded.

In his remarks, the Japanese Ambassador to Nigeria, Matsunaga Kazuyoshi, reaffirmed Japan’s long-standing commitment to innovation and gender inclusion in Nigeria. He announced that Japan, through JICA, is currently supporting two grant projects worth $30.9 million, focused on improving Nigeria’s startup ecosystem, strengthening the investment climate, and building an inclusive innovation hub.

The Ambassador also referenced the upcoming Tokyo International Conference on African Development (TICAD 9), themed “Co-create Innovative Solutions with Africa”, as further testament to Japan’s dedication to deepening Africa-Japan cooperation on digital transformation and entrepreneurship.

Lead Facilitator of IgniteHer, Hajiya Hafsat Salabi-Dange, described the programme as a catalyst for social and economic transformation. While praising NITDA’s visionary approach to development, she stated that the programme is a movement that is bridging the digital gender divide and fostering economic independence.

Encouraging the participants to remain curious, intentional, and bold, she said, “What you will gain here goes beyond business; it is a tool for community upliftment, national growth, and generational impact.”


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