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Economy, Finance & Business News Headlines: 27th March 2020

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COVID-19 Update:

The coronavirus pandemic has sickened more than 523,700 people, according to official counts. As of Friday morning, at least 23,908 people have died, and the virus has been detected in at least 171 countries.

The number of known coronavirus cases in the United States continues to grow quickly. As of Thursday morning, there have been at least 85,381 cases of coronavirus confirmed by lab tests and 1,271 deaths, according to a New York Times database.

Oil Market Update:

Fatih Birol, a Turkish economist, energy expert and Executive Director of the International Energy Agency, said on Thursday during a press briefing that global oil demand could fall by about 20 million barrels per day.

This is imminent as close to 3 billion people across continents may be confined to their homes, as a result activity around the world will fall, demand for energy will continue to fall and price of oil along with it.

Yesterday, S & P downgraded the sovereign ratings of oil-exporting nations, including Nigeria, Mexico, Angola, Ecuador and Oman. Nigeria was downgraded to B-, ‘junk’ territory. Mexico down to BBB while Angola and Ecuador were both lowered into the CCC default zone.

Stock Market Update:

Sentiments are currently negative as most markets are down. FTSE 100 (UK) is down by 4.82%, Dax (Germany) down by 3.05% and CAC 40 of France down by 4.02%. Nigeria’s ASI is currently up by 0.42%.

Headlines:
Nigeria in lockdown
NIGERIA has been shut down as states make frantic efforts to curtail the spread of Coronavirus (COVID-19) pandemic. The confirmed positive cases rose to 65 on Thursday from 51 the day before. Most of the states on Thursday shut their entry and exit points. The Federal Government also said it is likely to ban travels within and between states. Minister of Information and Culture, Alhaji Lai Mohammed, said more “aggressive” measures will be announced soon. Read more
CBN, Dangote plan N120bn COVID-19 fund, Elumelu, Rabiu donate N6bn
The Central Bank of Nigeria and the private sector, led by Aliko Dangote Foundation and Access Bank, have set up a coalition aimed at raising N120bn towards the fight against COVID-19 in Nigeria. The Governor, Central Bank of Nigeria, Mr Godwin Emefiele, said at a press briefing in Lagos on Thursday that the Nigerian Private Sector Coalition Against COVID-19 was created out of the urgent need to combat the COVID-19 pandemic in the country. Read more
COVID-19: Operators move to avert food supply crisis
Farmers and agri-business operators have commenced moves aimed at averting food supply crisis that may arise from the current lockdown in states following the outbreak of coronavirus. Operators under the aegis of Agric Bureau Association of Nigeria stated that it was time for all stakeholders in the country’s agricultural sector to think about how to avert a looming food crisis in Nigeria. Read more
Asia shares rise on more stimulus hopes but dollar loses steam
Asian stocks rose on Friday as investors wagered policymakers will roll out more stimulus measures to combat the coronavirus pandemic after U.S. unemployment filings surged to a record. Read more
G20 leaders to inject $5 trillion into global economy in fight against coronavirus
Leaders of the Group of 20 major economies pledged on Thursday to inject over $5 trillion into the global economy to limit job and income losses from the coronavirus and “do whatever it takes to overcome the pandemic.” “The G20 is committed to do whatever it takes to overcome the pandemic,” along with the World Health Organization and other international institutions, they said. Read more
U.S. has most coronavirus cases in world, next wave aimed at Louisiana
The number of U.S. coronavirus infections climbed above 82,000 on Thursday, surpassing the national tallies of China and Italy, as New York, New Orleans and other hot spots faced a surge in hospitalizations and looming shortages of supplies, staff and sick beds. With medical facilities running low on ventilators and protective masks and hampered by limited diagnostic testing capacity, the U.S. death toll from COVID-19, the respiratory disease caused by the virus, rose beyond 1,200. Read more
Dollar pulls back as panic selling eases, on course for biggest loss in decade
The dollar was on track for its biggest weekly fall in more than a decade on Friday as a series of stimulus measures around the world, including a $2.2 trillion U.S. package, helped temper a rout in global markets triggered by the coronavirus pandemic. The dollar fell more than 1% to 108.35 yen, due largely to Japanese repatriating funds ahead of their fiscal year end on March, after having shed 1.44% overnight. The euro also stayed firm at $1.1041 after a jump of 1.40% on Thursday. Read more
Fraudsters creating websites to defraud Nigerians, says NITDA
The National Information Technology Development Agency on Thursday announced that Internet fraudsters were creating websites to defraud unsuspecting citizens as a result of the coronavirus pandemic. According to the agency, the fraudsters had deployed various phishing tricks to attract internet users. The Head of Media, NITDA, Hadiza Umar, however, stated that the agency was doing everything possible to shut down the identified websites and bring those behind them to book. Read more

Billionaires’ list: Dangote loses $2.5bn in one month
The President/Chief Executive, Dangote Industries Limited, Aliko Dangote, saw its total net worth drop by $2.5bn in the last 30 days, according to Bloomberg Billionaires Index. The index, which is a ranking of the world’s 500 richest people, showed that his wealth fell from $15.9bn as of February 25, 2020, to $13.4bn on March 26. It had risen to a high of $16.5bn on January 27. The share price of Dangote Cement Plc, the biggest listed company on the Nigerian Stock Exchange, fell by 23.71 per cent to N129.70 on Thursday from N170 on February 25, 2020. Read more
Air France-KLM evacuates European nationals from Nigeria
An aircraft operated by Air-France KLM on Thursday arrived at the Murtala Muhammed International Airport, Lagos to evacuate some European nationals from Nigeria. It was gathered that the flight, which also left the same day, got special approval from the Ministry of Aviation for the exercise. The ministry however ordered the airline to operate strictly based on the protocol guiding such operations under COVID-19. Read more

Battling the Epidemic of Fake News, Health Misinformation in the Midst of COVID 19 in Nigeria

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World over, the fight against the Coronavirus pandemic has been dogged by the struggle to contain the information epidemic that accompanies the novel virus. From the mode of transmission to the means of prevention, government efforts and confirmed cases, there are a lot of unreliable pieces of information flying around. What is more puzzling is the fact the perpetrators also go to any length to make their false information credible using photoshopped images. This piece takes a look at six of these unsubstantiated pieces of information that have been fact checked and declared lies from the bottom of hell.

10 Senators, 15 House of Representatives Allegedly Test Positive to Coronavirus   

This is a news story that came on the heels of information that some national legislators that were on some national assignment outside Nigeria were not subjecting themselves to test at the airports. The story which was super-imposed on a purported story that emanated from the Television Continental (TVC). This story is false. An organisation, KnowCOVID19Nigeria has declared the story fake as there was no evidence to back the story. No names of the legislators have been mentioned. There was neither a video or link to the story on the website of the satellite television.

The Index Case in Osun was a woman from Ilesa

The story started flying around when the state recorded its first confirmed case of the Coronavirus. People on social media began to speculate as to who and where the first  case emanated from. Within a twinkle of an eye, suggestions have been flying around. Names were mentioned. She was said to have just returned from the UK which is a high risk country. Horribly, panic level was raised as people began to concoct horror filled stories of deliberate carelessness of the infected person claimed to be a female doctor. The fiction argued the woman dropped her son at a crèche to mix with other children to spread the disease. She was also accused of flouting the rule of self isolation and went on as if she never had disease. However, the bubble of the story was burst when the Osun State Commissioner for Health, Ismaotu Rafiu, came on air on a local station to clear the air. Then, people realised the index case was a man. He never had anything to do with Ilesa. He came in from Lagos. Stayed at an hotel to self isolate. He drove himself to the state teaching hospital for test.

Job at World Health Organization

It was a fake job notification looking for people to help fight Coronavirus from home. The job requirement does not call for any experience. It offers from $5 to $100 on daily basis for sending SMS. Interested candidates were required to click a link and apply. A simple search on WHO website revealed such job was non-existent. It was a gimmick to steal people’s information submitted.

The Borno State-of-the-Art Isolation Centre

The story was reported by an online platform dailytimes.ng. It was said that the Borno State government had built a 100-bed isolation centre in preparation for the novel virus. The photo went viral with people praising the Prof. Zulum Babagana Umara-led administration in Borno. However, in another tweet on his Twitter handle, the governor denied the story. He said it was the dialysis centre built by the state government. He said the state had a modest isolation centre and was tough on prevention.

Muhammadu Buhari’s Test on COVID 19 was Positive

A popular online blogger, Kemi Olunloyo tweeted the news that the test had by the president Muhammadu Buhari was positive and that he has been sick coughing intermittently. It was even said that a makeshift Intensive Care Unit has been set up for his treatment. The tweets was liked over 3000 times and retweeted more than 2,000 times. Events have proved that it was fake. The said story was later backed by a super imposed image of a headline to that effect on CNN. This is done in a bid to make the story credible. The presidency had to come out to deny the story.

Effects of Fake Stories on the Fight Agaisnt the Virus

An expert, Hassan Idayat, who is the director of Centre for Democracy and Development took a look at health misinformation and its effect on the fight against the virus. She submitted in an article that misinformation could affect the fight in different ways. One, it makes the responsible institutions to face a double battle of combating the scourge and the evil of misinformation that follow it. Two, it would weigh down the  health institutions fighting the virus. Three, it incites panic and panic buying. Four, it proffers fake cure and wrong information that could lead to more deaths. It promotes hate speech and division along political or ethnic lines when we are supposed to be united to fight the invasion.

As the battle against the novel virus rages on, we need to slow the pace of fake news and cut through the noise that surrounds the real enemy.

Covid-19 Recovery: How Nigeria can disburse N50,000 interest-free loans to one million small businesses

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According to a study about the logistics of the Roman Army at War between 264 BC – AD 235;

“Food and drink made up the vast bulk of the supplies needed by a Roman army, since in comparison to modern armies their requirement for large amounts of ammunition was minimal. In addition to feeding its soldiers, the army had also to provide fodder for its mounts and baggage animals.”

From this study, we can draw a very distinct lesson – food can help in winning any war.

Nigeria and other countries are currently fighting a pandemic warfare and here, the army isn’t made up of just the police, soldiers, and other law enforcement groups. The vast majority of the army consists of the general populace. Every man, woman, and child is involved in this fight.

And the secret weapon we all have globally in ensuring we will win this way is simple – STAYING AT HOME. But just like every weapon, without ammunition, our’s won’t fire. The one ammunition we need as a nation to ensure our weapon fires non-stop is for everyone to have access to food during the stay at home period.

And the federal government has the capacity to provide this ammunition and ensure we win this war.

Late in 2019, it granted deposit money banks the approval to debit bank accounts of loan defaulters across all the banks in Nigeria. This might just be the key the federal government needs to disburse up to N50,000 micro interest-free loans to 1 million qualified Nigerians for the purpose of sustenance during this Covid-19 battle.

Lots of entrepreneurs and businesses have been grossly affected by the Covid-19 warfare across the country including job loss. Here in Delta State, businesses like event centers, event planning, private schools, tutorial centers, etc have been greatly affected.

This is also the same situation in other states.

And when there is a shortage of income there will be a rise in hunger. Even if you keep the food supply open, without money to purchase this food, there will be chaos.

The Nigerian government with the help of data can actually carry out an assessment of individual credit history, monthly/yearly turnover (personal or business accounts) and decide who qualifies for an interest-free loan of N50,000.

This said sum will help provide basic needs (food) and medication for families relying on their small scale business. Based on the CBN approval on loan deduction, the whole process – assessment, disbursement, and loan repayment can be done swiftly via banks with good online banking infrastructure without actually gathering any forms of a crowd.

  • The United States of America has approved a Stimulus package of $2 trillion US Dollars.
  • Singapore has set aside $33.17 billion US Dollars to support businesses and households
  • Italy is spending a whopping $82 billion dollars Stimulus package

This is not the time to hoard funds and this is not the time to make a profit from interest rates. Millions of Nigerians out there live from hand-to-mouth and cannot even afford hand sanitizers. The stay at home order will remain a ruse to them unless the government acts.

If there is any time the citizens of Nigeria should feel the impact of the government, it is now. A soft interest-free loan of N50,000 given to 1 million Nigerians (N50 billion naira) will greatly enforce the stay at home order and contribute to winning this war.

After the crises, the loan can be deducted from everyone’s account thanks to the new CBN rule. In the end, it will be a win-win.

How Football Fans Spread Coronavirus Across Europe

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Last week, Italy moved past China in the number of recorded coronavirus cases. At the current 7,503 deaths, the Mediterranean country has over 3, 719 fatalities more than China (3,281) even though it has a population of 60 million, about half the size of Wuhan, the Chinese city where the virus broke off from.

The number leaped with alarming speed in March, with Italians being responsible for the transmission of the pandemic to some other countries. Africa appeared safe in the beginning until recently when the number of infected persons in the continent started rising.

In Europe, Italy and Spain are the most infected countries with rising rates surmounting Chinese records. The speed of the spread in Europe has baffled scientists and health workers; some have attributed it to governments’ lax attitude in initiating a lockdown early enough in European countries. But there is more to it that’s just coming to light.

Scientists believe that the reason could be traced back to February when Atlanta hosted Valencia for a Champions League match. Thousands of fans gathered in the city of Bergamo from across Europe but especially Italy and Spain to view the match. Atlanta won Valencia 4-1 and both Italy and shared maximum impact of coronavirus as it spread through fans to the respective countries.

Both Italy and Spain have more than 80, 000 cases of infection with death toll surpassing 11,000. Bergamo is the most infected city in Europe with over 5,000 cases and 1,000 deaths. The city was reportedly conducting burials every 30 minutes, and army trucks are being used to convey dead bodies to the cemeteries.

Immunologist professor Francesco Le Foche said the surge must have been triggered by football activity as the outbreak was gaining ground in Europe.

“It’s probably that there were several major triggers and catalysts for the diffusion of the virus. The Atlanta-Valencia game could very well have been one of them. It was the apex of collective euphoria in a unique football season for this club,” said Foche.

Football bodies in Europe took a long time contemplating whether to suspend matches, and with the games holding thousands of fans at a time, the room for escalation widened. Given the period of the Atlanta-Valencia match, the time is right for the virus to unleash its venom.

“A month has passed since that match, so the timing is pertinent. The aggregation of thousands of people, centimeters from each other, engaging in manifestations of euphoria like hugging, shouting, all of that could’ve favored viral reciprocation.

“I have to imagine many didn’t want to miss that game if they had tickets, even if they felt a slight fever. With hindsight, it was madness to play with a crowd present, but at the time things weren’t clear enough. It’d be unthinkable now,” Foche added.

In February, coronavirus was still considered by many as a disease peculiar to the Chinese people and will be prevented before it gets to some parts of the world, Europe included. It unfortunately happened to be a misconception of COVID-19 that Italy and Spain are paying dearly for.

The Mayor of Bergamo Giorgio Gori said in an interview with Marca that the Atlanta-Valencia game “was a biological bomb” that its detonation took Europe by storm.

“At that time we did not know what was happening. The first patient in Italy was on 23 February. If the virus was already circulating, the 40,000 fans who went to the San Siro Stadium were infected. No one knew that the virus was already circulating among us. Many watched the game in groups and there were many contacts that night. The virus passed from one another,” Gori said.

On March 16, Valencia announced that 35% of the squad that traveled to Italy tested positive. The club returned to Spain with each one, from the squad to fans, having a touch of coronavirus.

The whole of Europe is at the mercy of the pandemic as every nation in the continent is battling to curtail the increasing number of cases and deaths by minute. Football has been fingered as the major cause of the escalation following the government’s insouciant attitude.

The UK is another place taking a major hit right now, and the escalation is also attributed to football activities. It was until coaches and players started testing positive for coronavirus that the Football Association saw the need to suspend matches. It is believed that the spread has been aided by a crowd of spectators who recklessly mingled when they should be distancing.

The Early Heroes In The Nigerian Fight Against COVID-19

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The Coronavirus pandemic has hit Nigeria with a big blow. It has gone to attack the heart of its leadership. From the president to state governors, Nigerian political leadership has had a fair share of the novel virus troubles. The president, Muhammadu Buhari, his vice, Yemi Osinbajo and other political elites have got tested of the COVID 19. The first two citizens and governors of Ekiti and Osun  have emerged unscathed from the hit of the virus. They were negative. However, the Chief of Staff, Abba Kyari,  Bauchi State governor, Bala Mohammed and his Edo State counterpart, Godwin Obaseki have all tested positive to the novel virus. As at the time of writing this piece, confirmed cases have risen to 51 with 2 recoveries and 1 death recorded, the National Centre for Disease Control has revealed.

The fight is against the spread of the virus and the overrunning of the fragile health system. On daily basis, some people have been at the forefront providing accurate, up to date information on the virus and leading the charge against a disease that has no respect for age, social class or colour. This piece focuses on those who have taken the initiative to ensure we stay safe right from the time of the index case up until this period. They include political leaders, business men and women as well as brands that are shaping the fight against the Coronavirus.  Let us have a look.

The National Centre for Disease Control : This organisation has the mandate to protect Nigeria’s territorial integrity against the invasion of diseases. Leveraging on the Ebola experience, the Centre has been responding well to the challenges posed by the disease. Under the leadership of Dr. Chikwe Ihekweazu. The Centre has been giving real time update on confirmed cases, recoveries and deaths recorded. It has since created a micro website to serve the purpose of coordinating the fight and communicating to Nigerians on daily basis. Under the Federal Ministry of Health, NCDC has assisted in discovering new cases, monitoring suspected infections and ensuring preventive information is at the finger tips of Nigerians. They operate to disseminate information on Twitter and Facebook. The centre is doing a yeoman’s job fighting the pandemic and the infodemic that accompanies it.

Governor Babajide Sanwoolu : He needs no introduction. He is the governor of  the commercial capital of Nigeria. The gateway to the COVID 19. If not for Lagos, the incidence rate would have been higher than we have had it now. The governor rose to the occasion leading the fight against the spread of the virus. Every time there is a new challenge, Sanwoolu provides the needed leadership rallying the political and corporate leadership to help Nigeria put up a fight against the virus. From unscheduled visits to providing real time updates to acquiring the needed equipment to combat the virus, the governor has shown leadership character in the battle against the virus. He has been giving effective directives and ensuring their enforcements. Lagos has taken delivery of disinfectant equipment to step up the fight against the virus. Many other states are copying the Lagos template in the prevention race against the disease.

The Billionaire Aliko Dangote : The billionaire Aliko Dangote is a force to reckon with in Nigeria and Africa. One of the richest men in the world, he has led the corporate world in a response to the fight against the Coronavirus by making available N200,000,000 for the fight against the disease. His foundation, Aliko Dangote Foundation came up with the financial aid when the confirmed cases were just 8. He has done well.

Folorunsho Alakija : She is the richest Nigerian woman. She is also a known philanthropist. When the face masks, hand sanitizers and test kits were becoming gold, she ordered for a million each of face masks, test kits and 10 million sanitizers. As an early responder, she is deserved to be celebrated.

Atiku Abubakar : A former vice president and an opposition leading figure, Atiku has shown class in his interventions since Nigeria’s first index case. At the earlier stage, he was long on words charging both government and citizens to come together to fight the disease. He did not only suggest, he also promised to make himself available when such is demanded. So, he advised the FG to pay N10,000 to each Nigerian to mitigate the effect of the looming lockdown. He also donated N50,000,000 through one of his companies  to provide a stimulus package for Nigerians. Despite the fact that his son tested positive to the virus, Atiku has led in words  and deeds.

United Bank for Africa : It is a pan African bank with presence in selected countries across the continent. The bank, through its support programme, has promised to donate N5bn which is expected to be shared among Lagos State (N1bn), the Federal Capital Territory (N500mn), 35 States of the Federation (N1bn), UBA presence countries in Africa (N1.5bn) and Medical Centres with equipment and supplies free telemedicine call centre friendly (N1bn). It is a bold move for UBA.

Though it could appear early to pick the COVID 19 heroes, early response matters too as no one knows how long the virus is going to stay with Nigeria. Those who are responding needs to be celebrated now so that they could do more when the situation arises.