Akintunde Oyedokun

Research Analyst

Oil prices rose slightly on Friday as U.S. traders covered positions ahead of the three-day Memorial Day weekend and the start of the summer driving season. Brent closed at $64.78 per barrel and WTI at $61.53, both up 0.54%.

Gains were driven by concerns over the outcome of U.S.-Iran nuclear talks, which could impact crude supply, and by uncertainty surrounding a proposed 50% U.S. tariff on EU goods starting June 1. Additionally, OPEC+ is expected to increase output by 411,000 barrels per day in July, with further supply boosts possible through October.

Germany’s economy expanded by 0.4% in the first quarter of 2025, twice the earlier estimate, driven by a spike in exports and manufacturing ahead of expected U.S. tariffs. The rebound follows a 0.2% contraction in late 2024, briefly raising recession concerns.

The statistics office said stronger-than-expected industrial activity led the revision. While growth may slow in Q2 as the frontloading effect fades, rising wages and improving consumption could support momentum. Analysts see short-term risks but remain hopeful, especially with a €500 billion infrastructure plan boosting long-term outlook.

Core consumer prices in Japan rose 3.5% in April, marking the fastest annual increase since January 2023. The surge was driven by a 7% jump in food costs, with rice prices nearly doubling and chocolate up 31%.

The persistent inflation, which has stayed above the Bank of Japan’s 2% target for over three years, raises the likelihood of a rate hike by year-end. A separate measure excluding both fresh food and fuel also climbed to 3.0%, highlighting strong underlying price pressures despite external economic challenges.

The Bank of Ghana kept its key interest rate steady at 28% to maintain its tight monetary policy, citing easing inflation supported by currency stability and fiscal discipline. April inflation dropped to 21.2% from 22.4% in March but remains above the 8% target. Governor Asiama expects inflation to hit the target range earlier than projected, barring shocks. The cedi has strengthened, aided by policy measures, reserves, and forex controls. Ghana continues to recover from a severe economic crisis, with the Finance Minister aiming to cut inflation to 11.9% by year-end through spending  reductions.

Nigeria’s remittance inflows through International Money Transfer Operators (IMTOs) rose by 44.5% in 2024, hitting $4.76 billion, up from $3.30 billion in 2023, according to the Central Bank of Nigeria (CBN). This surge follows major reforms under Governor Cardoso, including lifting FX rate caps for IMTOs, introducing stricter licensing rules, and improving market access.

July and August were the strongest months, jointly contributing nearly 25% of the total annual inflow. Though November saw a decline, most months recorded strong year-on-year growth. The rise highlights the success of the CBN’s strategy to boost competition, streamline remittance processes, and enhance FX supply.