Crude oil prices, on Monday, increased to a five-month high.

Brent crude increased by 0.56 percent to $87.54 a barrel while US West Texas Intermediate (WTI) crude rose 0.79 percent, to $83.83 percent, at 20.00 WAT.

Consequently, the development puts both crude benchmarks on track for their highest closes since October 27, 2023.

This is above the $77.96 per barrel the federal government benchmarked as oil price in the 2024 budget.

It is also higher than the $65 per barrel used by the Nigerian National Petroleum Company (NNPC) Limited to calculate the allocated (90,000 barrels) crude in the $3.3 billion crude-for-cash loan agreement with African Export-Import Bank (Afreximbank).

NNPC, in a statement on January 21, had said if “oil prices rise, more money will come in from selling the 90,000 barrels, allowing for faster repayment. However, if oil prices fall, the repayment may be slower”.

“The quantity of crude earmarked (90,000 barrels) is sized to ensure enough cash is available for the repayment of the facility when it is due,” NNPC said.

“This also ensures that NNPC Limited can meet other cash flow obligations, considering the expected future price of crude oil globally.”

NNPC said oil prices are highly unpredictable, meaning prices can fluctuate within any given period.

Meanwhile, the Organisation of Petroleum Exporting Countries (OPEC), on March 13, said Nigeria’s average daily crude oil production dropped to 1.32 million barrels per day (bpd) in February.

However, OPEC’s secondary sources put Nigeria’s crude production at 1.476 million bpd — a 3.29 percent uptick from the 1.429 million bpd reported by the oil cartel in January this year.

The naira, on Friday, appreciated to N1,280 per dollar at the parallel section of the foreign exchange (FX) market.

The current FX rate signifies a 5.19 percent appreciation from the N1,350/$ reported on March 27.

Currency traders in Lagos, also known as bureau de change (BDCs) operators, quoted the buying rate of the greenback at N1,260 and the selling price at N1,280 — leaving a profit margin of N20.

“The price of the dollar as well as other major currencies have been falling. It is affecting our business as some customers prefer to keep their currencies than change it with us,” a currency trader identified as Aliyu told TheCable.

At the official section of the FX market, the local currency depreciated by 0.69 percent to N1,309.39/$ on March 28 — from N1,300.43/$ on March 27.

Meanwhile, the Central Bank of Nigeria (CBN), on March 29, said the economy recorded over $1.5 billion in foreign exchange (FX) inflow this month, indicating its monetary policy initiatives are effective.

The apex bank said the naira is headed in the right direction, and the administration of Yemi Cardoso, CBN governor, remains committed to ensuring the stability of the market and the appropriate pricing of the naira against other major currencies worldwide.

Heirs Technologies, a subsidiary of the Tony Elumelu majority-owned holding company, wants to become like Tek Experts which outsources IT support for businesses whose cores are not tech-oriented but need tech for their operations.

It intends to offer this service through the Managed IT Services segment of its business, which will aim to offer infrastructure management services, IT monitoring, software update and patch management, cybersecurity, cloud services management and monitoring, network management, data analytics, backup and disaster recovery.

Read also: Nigeria’s non-oil export seen rising on global cocoa price rally

Obong Idiong, the company’s managing director and chief executive officer at Heirs Technologies, outlined the plan to journalists: “… to provide businesses with a seamless and secured IT environment, allowing them to concentrate on their core operations while the technology aspect is expertly handled.”

The company said it will model its business after the success of India, Eastern Europe, and a couple of other local companies that have made progress in outsourcing talents for companies. Heirs is banking on the country’s youth population and growing developer population, which rose by 45 percent in 2023, to help create a sustainable pipeline of available tech talents.

It is currently investing in training 75 to 100 talents in 2024. The CEO highlighted that the new tech company will also build “campuses across the country to support outsourcing initiatives on the continent” to grow its pipeline.

Heirs’ play for the outsourcing market aligns with the Federal Government’s move to tap the said market, estimated to be worth $250 billion globally. The Outsource to Nigeria Initiative, a private sector-led, government-enabled program led by the Office of the Vice President, aims to create jobs in the business process and technology-enabled outsourcing sector.

Also, Bosun Tijani, the minister of communications, innovation, and digital economy, recently revealed plans to train three million technical talents over the next four years. 1.5 million of these talents will be outsourced to the global economy.

“Ultimately, our strategic intent is to retain at least 1.5 million of these skilled professionals within our local talent pool and facilitate opportunities for another 1.5 million of our talented individuals to excel in the global talent marketplace, preferably through remote opportunities,” Tijani said in a policy statement.

Nigeria wants to become an outsourcing hub in the coming years, and Anant Rao, executive director of Heirs Technologies, believes that these government initiatives will help private sector effort in the space too.

Nigerians have expressed excitement as Air Peace on Saturday operated full flight to London.

The airline which operated a Boeing 777 for the maiden flight, held a brief ceremony at the Muhammed International Airport (New Terminal) to celebrate the occasion.

Some of the dignitaries present at the occasion include Festus Keyamo, the Minister of aviation and aerospace development, Doris Uzoka-Anite, Minister of Industry, Trade and Investment, and Chris Najomo, acting director, general, NCAA amongst others.

The elated passengers on the Air Peace flight to London said the flight is a much-awaited one and signals a new dawn in Nigeria’s travel industry.

“It’s a new dawn for travellers. We are tired of exploitative fares charged by foreign carriers. Air Peace is changing the narrative to air travel with this maiden flight. We see that fares are gradually reducing since Air Peace announced flight to London. This is good for air travel and Nigeria,” Tony Ike, a passenger on the flight said.

Doris Uzoka-Anite, Minister of Industry, Trade and Investment described the feat by Air Peace as the convergence of innovation, determination, and the unwavering commitment to excellence.

Uzoka-Anite said today, Nigeria is celebrating more than just a flight; but the ingenuity of Nigerians.

“Nigeria has needed a local airline flying directly to the UK for a number of years. Air Peace proudly wears the badge of ‘Made in Nigeria.’ It is a symbol of our collective effort to showcase our capabilities to the world. From the skilled hands that maintain the aircraft to the warm smiles of the cabin crew, every aspect of Air Peace reflects the spirit of our nation,” she said.

“Let us reflect on the economic impact of this flight. Air Peace’s presence in London is not merely about arrivals and departures; it is about trade, investment, and collaboration.

“By choosing Air Peace, you choose to invest in Nigeria. You choose to empower local businesses, create jobs, and strengthen our economy. In December 2023, the UK exported £185 million to Nigeria and imported £154 million, resulting in a negative trade balance of £30.8 million. This is a trend we wish to change in Nigeria’s favour and an additional trade route is a major step in the right direction.”

She added that the choice of Nigerians to fly with Air Peace is a vote of confidence, adding that the airline has a commendable safety record, holding a 7 out of 7 safety rating according to Airline Ratings and has successfully undergone the International Air Transport Association Operational Safety Audit (IOSA) certification four times, signifying its commitment to rigorous safety standards.

“So I entreat all potential passengers to trust them to carry you safely across continents, and remember that you are part of a movement—a movement that encourages Nigerians to patronize their own. Let us be ambassadors in the skies, sharing stories of our rich heritage, our vibrant culture, and the warmth that defines us,” Uzoka-Anite added.

The International Monetary Fund (IMF) has said that inflation caused by currency depreciation in Sub-Saharan African (SSA) countries is eight times stronger during a depreciation than an appreciation.

This suggests that inflationary pressures may not come down as quickly when local currencies strengthen against hard currencies in SSA countries.

In a recently published report, the IMF stated that the magnitude of the exchange rate pass-through depended on factors like natural resource endowment, domestic market competitiveness, and monetary policy effectiveness.

Read also: Households battle to make ends meet as inflation bites

In essence, a low level of competition in markets in SSA countries increased inflation rate because only a few market players dominated pricing, the report said.

“The low level of competition in emerging and developing economies meant that firms in these economies generally have greater pricing power; as a result, they can swiftly pass exchange rate depreciations through to domestic prices,” it stated.

“Lack of competition among firms in these economies has had significant costs, hurting the poor through higher prices of essential items and undermining growth and the ability of the economy to absorb shocks,” it further stated.

Similarly, the report stated that SSA countries with higher dependence on natural resources experienced higher exchange rate pass-through to inflation.

Oil-exporting countries also experienced more persistent pass-throughs due to such countries’ dependence on oil.

“Natural resource dependence is associated with weaker institutions, which undermines a country’s ability to manage macroeconomic shocks. Resource boom is also often associated with exchange rate overvaluation which can crowd out production from other tradable sectors,” the report said.