Nigeria experiences renewed spike in COVID-19 cases

Nigeria is experiencing a concerning surge in COVID-19 cases, with over 1,200 new cases reported since Sunday, December 6th. The country is grappling with a renewed spike in new cases, with 550 new infections reported just yesterday evening. This uptick comes at a critical time as vaccine distribution gains momentum in the United Kingdom following the administration of the first Pfizer vaccine dose to a 90-year-old grandmother. Kayode Akindele, Partner at TIA Capital, shed light on the situation during a recent interview with CNBC Africa. Akindele raised alarms about a potential relaxation in pandemic precautions among Nigerians, particularly in urban centers like Lagos, where mask-wearing and social distancing appear to be waning. He highlighted a resurgence in social gatherings like weddings, church services, and other events, which could be contributing to the spike in cases. With the upcoming Christmas season and the return of many Nigerians from abroad, Akindele emphasized the need to reinforce public health measures until the vaccine becomes widely available. Beyond the public health crisis, the interview also touched on Nigeria's border policies and economic challenges. President Muhammadu Buhari's statements on reopening the borders sparked discussions about the efficacy of border closures in curbing criminal activities like smuggling. Akindele called for more transparency regarding the benefits of the border closure and emphasized the importance of efficiently managing borders while fostering regional trade relationships. The interview also delved into Nigeria's trade performance, noting a decline in total trade compared to the third quarter of 2019, partly attributed to the border closures. Akindele underscored the significance of reopening borders to revive Nigeria's role as a regional trading hub and prevent the loss of market share to other countries. Shifting focus to the energy sector, Akindele commented on OPEC's report of Nigeria's crude earnings rebounding by 116% in November. He attributed this boost to higher oil prices, despite a decrease in production numbers as Nigeria worked to comply with OPEC output cuts. Looking ahead, Akindele highlighted the need for Nigeria to monitor OPEC's decisions on production levels to navigate future challenges. The interview concluded with a discussion on the equities market, where the NSE All-Share Index recorded a slight decline. Akindele pointed out specific companies facing losses and emphasized the importance of addressing foreign exchange issues to attract international investors. While domestic interest in the equity market remains strong, resolving FX challenges is crucial for sustaining investor confidence. Overall, Akindele expressed optimism about the continued interest in the equity market but stressed the need for a stable FX environment to drive both domestic and international investment.