Akintunde Oyedokun
Research Analyst
Oil prices jumped over $1 on Tuesday after the U.S. imposed new sanctions on Iran and markets rebounded on hopes of easing U.S.-China trade tensions. Brent settled at $67.44, while WTI May futures closed at $64.32.
The sanctions raised concerns about tighter Iranian oil supply, while trade optimism boosted investor confidence. However, global growth worries remain after the IMF lowered its outlook.
IMF Lowers Eurozone Growth Forecast, Expects ECB Rate Cuts
The IMF cut its eurozone growth projections to 0.8% for 2025 and 1.2% for 2026, citing U.S. tariffs and uncertainty as key drags. A slight rebound in 2026 is expected, driven by higher real wages and fiscal easing in Germany.
Spain remains a bright spot, with growth revised up to 2.5% for 2024, supported by strong momentum and post-flood recovery.
The European Central Bank is expected to reduce rates to 2% by mid-2025, following ongoing monetary easing.
ECB Survey Sees Slight Inflation Rise Before Stabilizing At Target
Eurozone inflation may be slightly higher this year than previously forecast but is expected to stabilize at the ECB’s 2% target, according to the central bank’s latest Survey of Professional Forecasters. The 2025 inflation outlook was raised to 2.2% from 2.1%, while 2026 was nudged up to 2.0%. However, shifting market conditions since the survey’s April 4 cutoff—such as a stronger euro, lower energy prices, and rising U.S. trade tensions—could alter the inflation path. Despite these risks, growth forecasts saw only a slight downgrade, with 2025 GDP growth now seen at 0.9%.
Central African Nations Face Shortfall In Environmental Restoration Funds
Six Central African countries, including Cameroon, Gabon, and Chad, are expecting a significant shortfall in environmental restoration funds from oil firms. Despite anticipating billions of dollars, they may receive less than $500 million by the April 30 deadline, according to oil industry sources.
The funds, governed by rules introduced by the Bank of Central African States (BEAC) in 2018, aim to boost the countries’ depleted hard-currency reserves and address economic fragility. However, oil companies and regional authorities remain at odds ahead of the deadline, with threats of immediate penalties from May 1.
Nigeria Automates Expatriate Residence Permit Process
Nigeria is introducing a fully automated system for expatriate residence permits from May 1, aiming to speed up approvals and reduce corruption. The new online system will allow applicants to process their permits digitally, eliminating the need for physical form purchases and manual document submissions.
The government will also implement reforms to ensure expatriate quotas are granted for roles requiring skills lacking locally, and introduce a mandatory insurance scheme to cover repatriation costs.
