Global ratings firm Standard & Poor’s has said Nigeria cannot avoid devaluing the naira in the near future, recommending devaluation by as much as 15 percent, it is of the opinion that the devaluation could come in a gradual fashion. S&P says that the Central Bank’s attempts to curb access to foreign currency on the official market by importers of certain goods are simply delaying the inevitable. Non-deliverable forwards, which are derivatives used to hedge against future exchange rate moves reflect expectations of currency weakening with the six-month NDFs pricing the naira at 233 per dollar.
Transcorp’s first-half pre-tax profit fell by 35.6 percent to N5.16 billion, from the previous year. the conglomerate, which has interests in hotel, power generation, oil and gas, saw its revenue fall to N20.25 billion in the period to end-June, against N21.21 billion recorded last year.
South Africa’s foreign minister has said that the country is looking forward to resuming trade with Iran, including oil imports, once sanctions are lifted following a nuclear deal between Tehran and six major powers. Iran was once the biggest oil supplier to South Africa – which is Africa’s second-biggest crude consumer, importing around 380,000 barrels per day (bpd) in total. In 2012 83% of trade between Nigeria and South Africa was taken up by South African imports of Nigerian crude oil.