Nigeria's economy was a 'disaster' in 2016. Will this year be different?

Nigeria's economy was a 'disaster' in 2016. Will this year be different?

By Eleni Giokos April 27, 2017: 10:52 AM ET

Will rising oil prices be enough to snap Nigeria out of its funk?

Africa's top oil producer is expected to return to growth this year after suffering its first contraction in a quarter century in 2016.

But there are precious few reasons for investors to cheer. The economic recovery is paper-thin, and the government has struggled to respond to attacks on oil pipelines. Billions have been spent to keep the country's currency at artificially high levels.

Here's a look at where Nigeria stands:

Still banking on oil

Nigeria remains heavily dependent on oil.

Crude sales are the source of up to 70% of government revenue and more than 90% of the country's export earnings.

When oil prices decline sharply -- as they did starting in 2014 -- the lack of diversity in Nigeria's economy becomes a major problem.

"Last year was a disaster," said Ronak Gopaldas of Rand Merchant Bank. "The external environment was not favorable."

Related: Can this massive refinery solve Nigeria's energy crisis?

Crude prices have stabilized in recent months after major oil producers including Nigeria agreed to slash production.

The coordinated action has helped Nigeria return to a more solid footing. The IMF predicts growth of 0.8% in 2017.

But there are other energy industry problems closer to home: The government has struggled to deter attacks on pipelines and barges in the Niger Delta that help move oil supplies out of the country.

Nigeria's oil exports plunged in 2016, but have since recovered some lost ground. In February, the country added more capacity than any other OPEC member.

Currency trouble

Collapsing oil prices have heaped pressure on Nigeria's currency, the naira.

The country's central bank maintained a peg of roughly 200 against the dollar until June of last year. But then, as dollar reserves ran dry, the government changed tack and devalued the currency. The naira immediately plunged 30%.

Since then, the central bank has defended the currency at roughly 315 to the dollar.

Related: How to shop in Nigeria: Use your ears

But pressure is again building, with black market currency dealers charging much higher rates.

Economists say the situation won't be entirely remedied until the government removes currency controls and allows the naira to trade freely.

Political headwinds

The election of President Muhammadu Buhari, who took office in 2015, was seen as a strike against endemic corruption in Nigeria.

But with national elections looming in 2019, the political survivor is running out of time to implement reforms.

Buhari was recently away from Nigeria for two months as he sought medical treatment in London.

Analysts say that improvements to currency policy could unleash growth. And moves to diversify the economy would be very welcome.

But, as always, the pace of growth in Nigeria may ultimately depend oil prices.

FIFA overturns Lionel Messi four game ban from international matches

Friday, 5 May 2017

FIFA overturns Lionel Messi's four-game ban from international matches

Following a hearing which took place in Zurich on May 4 2017, the FIFA Appeal committee has upheld the appeal lodged by the Argentinian Football Association on behalf of Lionel Messi, against the decision taken by the FIFA Disciplinary Committee.
Lifting the sanctions imposed on him, the Appeal Committee set aside the decision taken by the FIFA Disciplinary Committee on 28 March 2017, which, in application of art. 77 a) of the FIFA Disciplinary Code (FDC), had found Lionel Messi guilty of infringing art. 57 of the FDC for having directed insulting words at an assistant referee during Argentina's World Cup qualifier against Chile.

Despite the fact that the FIFA Appeal Committee considered Lionel Messi’s behaviour as reproachable, they concluded that the evidence available was not sufficient.

"The Appeal Committee nevertheless underlines the importance of always showing respect to the match officials, stressing that such a principle is essential in football and any unsporting conduct that may be contrary to the principles of fair play cannot be accepted. In view of the above decision, the suspension for four matches imposed on Lionel Messi, which entered into force on 28 March 2017, and the fine of CHF 10,000 have been lifted," the statement read.

Four male students who molested female students in Ikoyi have been apprehended

Friday, 5 May 2017

Four male students who molested female students in Ikoyi have been apprehended

The  Zone 2 command Onikan have apprehended four of the male students of the Falomo Senior High School in Ikoyi that openly molested female students of Ireti Grammer school on Wednesday May 3rd. Confirming their arrest to LIB, the Zone 2 PPRO, SP Dolapo Badmos, said the zone received the report of sexual harassment and that the AIG in charge of the Zone, AIG Adamu Ibrahim (pictured above), directed a discreet and full investigation into the matter.

According to SP Badmos, the investigation have so far yielded some result as four of the suspects have been apprehended and brought in for questioning with the assistance and cooperation of Lagos State ministry of youth development. Dolapo said the case still under investigation.