Taiwo Adekeye

Research Analyst

Oil prices ended lower on Friday but marked a second consecutive week of gains, bolstered by a U.S. interest rate cut and a decrease in U.S. supply. Brent futures settled at $74.49 a barrel, down 0.52%, while U.S. WTI crude futures closed at $71.92, down 0.4%. However, both benchmarks rose over 4% for the week. Typically, interest rate cuts lead to a weaker dollar, which can stimulate economic activity and increase energy demand.

Federal Reserve Cuts Rates for First Time in Four Years

The US Federal Reserve cut interest rates for the first time in over four years, reducing its key lending rate by 0.5 percentage points to 4.75%-5%. This larger-than-expected cut was aimed at easing borrowing costs to support a cooling job market and steady inflation. The move sparked a rally in US bank stocks, with major institutions like Capital One, Citigroup, and JPMorgan seeing gains. While Moody’s warned that lower rates could initially squeeze net interest income, the long-term outlook is positive as reduced borrowing costs may boost economic growth.

Bank of England Holds Rates Steady at 5% Amid Inflation

The Bank of England (BoE) held interest rates steady at 5% during its September meeting, aligning with expectations from economists after the Federal Reserve’s recent rate cut. The BoE’s decision comes amid persistently high UK core inflation, which stood at 3.6% in August, and a sharp rise in services inflation to 5.6%. Despite growing pressures for rate reductions, only one member of the Monetary Policy Committee voted in favor of a cut.Following the announcement, the British pound strengthened against both the US dollar and the euro, indicating market confidence in the BoE’s cautious stance despite inflationary pressures.

FIRS Launches e-Invoice System to Modernize Tax Compliance

The Federal Inland Revenue Service (FIRS) introduced the e-Invoice system to modernize the country’s tax framework, aiming to improve transparency and compliance in business transactions.This initiative aligns with broader tax reforms, including efforts to simplify tax regimes for small businesses and enhance revenue collection, with a target of increasing Nigeria’s tax-to-GDP ratio.

APM Terminals Apapa Reports 25% Rise In Non-Oil Exports

APM Terminals Apapa recorded a 25% rise in non-oil export cargo volumes in the first half of 2024, underscoring the country’s efforts to diversify away from oil dependency. The terminal plans to host an exporters’ forum to address challenges in the non-oil export sector, further boosting Nigeria’s export growth. These measures reflect Nigeria’s broader strategy to strengthen its economy through reforms in taxation and export sectors.