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Middle East war may force Nigerians to work from home – Dangote

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Chairman and CEO of Dangote Group, Aliko Dangote, has warned that the ongoing Middle East crisis could force Nigeria and other African countries to adopt COVID-era work-from-home restrictions if the conflict does not de-escalate.

Dangote gave the warning on Monday after meeting with President Bola Tinubu at his Ikoyi residence in Lagos, expressing deep concern about the economic impact of oil price volatility on the continent already burdened by debt.

The industrialist stated, “If this thing doesn’t de-escalate, you know, normally we in Africa, we don’t have any reserves in terms of savings.

“And so, people normally go out and look for money for the next day or for even the same day. Some of them, if they don’t work that day, they won’t eat.”

He cited Indonesia’s response to energy crisis pressures, where authorities asked workers to operate only four days a week and are considering full work-from-home arrangements similar to the COVID-19 pandemic.

“In some countries today what they’ve done, they asked everybody to work from home because they cannot afford it.

“I think Indonesians also only go to work four days a week. And they will look at the situation if it doesn’t improve, they will ask everybody not to go to work anymore.

“We will do like that time of COVID, where people will work from home,” Dangote stated.

The billionaire businessman warned that Africa would pay a disproportionate price for a crisis in which the continent has no involvement.

“It’s not only energy. Some people will try and take a chance and say, ‘Ah, this is an opportunity. So, let me make money.’

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“So, if this thing doesn’t de-escalate, it is going to keep going up and up and up, and governments cannot really and add to salaries.

“So, people will really, really feel the pinch,” he stated.

Dangote emphasised that the crisis would hit hardest at ordinary Africans operating small businesses, especially barbers, bread sellers, and industries dependent on generators for power.

“People who are barbers, people who make bread, people who have industries, who have to pay for their own generators, you know, I mean, you can see what is happening,” he said.

He called for urgent prayers and international intervention to end the conflict.

“We just need all hands-on deck to pray that this thing comes to an end,” the Dangote Group chairman stated.

Speaking on President Tinubu’s recent state visit to the United Kingdom, Dangote expressed optimism the trip will open doors for Nigerian business and investment.

He highlighted the £746m infrastructure agreement signed during the visit, describing it as significant beyond the monetary value.

“It has not been easy dealing with the British, getting this kind of money out of them. They too, they are struggling on their own. But I think this is to show confidence — it’s not about the money. It’s about the confidence in Nigeria,” Dangote said.

He predicted that the UK agreement would encourage other countries to follow suit.

“The moment that they do that, there will be other countries that will follow suit. Germany will come, others will line up and start coming up,” he stated.

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Dangote also revealed that Nigerian investors could now access the UK Export Finance agency, a credit resource that has remained largely untapped for years.

“For Nigerian investors, it has shown that we can also go to the same agency and tap the resources. It means that the agency now is open for business for Nigerians, and we will go as private people to look for them to give us support,” he explained.

The infrastructure agreement signed during Tinubu’s UK visit focuses on port development and other critical areas, with funding from UK Export Finance.

Dangote said he visited the President to extend Eid-el-Fitr greetings and pay his respects following Tinubu’s return from the two-day state visit to the United Kingdom.

The Middle East crisis has triggered concerns about oil price volatility globally, with potential impacts on inflation, transportation costs, and energy-dependent sectors across Africa.

Nigeria, despite being an oil-producing nation, remains vulnerable to global oil price fluctuations due to its dependence on imported refined petroleum products.

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N100 notes still legal tender, says CBN

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The Central Bank of Nigeria has ordered members of the public, businesses, and commercial banks to immediately cease the rejection of the standard N100 banknote, declaring that the currency remains a valid medium of exchange across the country.

The directive follows growing reports that sections of the public, informal traders, and various economic stakeholders were refusing to accept the standard N100 note. The apex bank attributed the trend to widespread, unfounded rumours that the older design had expired or been phased out.

Clarifying the situation in an official statement released in Abuja, the CBN Acting Director of Corporate Communications, Mrs Hakama Sidi-Ali, addressed the root of the public’s confusion.

She said, “The attention of the Central Bank of Nigeria has been drawn to reports of the rejection of the standard N100 banknote by some members of the public, businesses, and other stakeholders, apparently due to doubts about its continued legal tender status.”

Sidi-Ali explained that much of the anxiety stemmed from the introduction of the commemorative N100 note, which was launched over a decade ago to celebrate Nigeria’s centennial. According to the apex bank, the commemorative design was never intended to push the original note out of circulation.

“For the avoidance of doubt, the CBN hereby reiterates that both the commemorative N100 banknote and the standard N100 banknote remain legal tender in Nigeria and must be accepted for all transactions nationwide.

The commemorative N100 banknote, which was introduced to mark Nigeria’s centenary, did not replace the existing standard N100 banknote,” she added.

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Moving beyond mere clarification, the financial regulator issued a stern warning to anyone found breaking currency laws. The bank noted that rejecting any duly issued national currency constitutes a clear violation of federal legislation.

Sidi-Ali warned, “The CBN strongly cautions individuals, businesses, financial institutions, and other economic agents against rejecting the standard N100 banknote. Such rejection constitutes a violation of the provisions of the CBN Act and undermines confidence in the national currency.”

The apex bank further emphasised that it would actively police compliance and penalise any defaulting market agents, shops, or banks.

“The Bank will not hesitate to apply appropriate enforcement measures against any person or entity found to be in breach,” the statement read.

Concluding the briefing, the CBN reassured the public of its commitment to ensure a steady supply of cash, urging citizens to confidently use all legally issued notes in their daily commerce.

The statement further read, “The Bank remains committed to safeguarding the integrity of the Naira, ensuring confidence in all duly issued banknotes, and promoting smooth currency circulation across the country. Accordingly, members of the public are urged to accept and transact with all banknotes legally issued by the Central Bank of Nigeria.”

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IMF reveals that rising prices threaten Nigeria’s poverty reduction gains

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The International Monetary Fund (IMF) has warned that rising prices of essential goods could deepen poverty and worsen food insecurity in Nigeria despite recent improvements in the country’s macroeconomic stability.

The warning was contained in the IMF’s July 2026 World Economic Outlook Update, which projected that Nigeria’s economy would grow by 4.1 per cent in 2026 and 4.3 per cent in 2027, while cautioning that higher prices for basic necessities could offset some of the gains from ongoing economic reforms.

According to the Fund’s report released on Wednesday, Nigeria has continued to benefit from improved macroeconomic stability and stronger terms of trade, but households remain vulnerable to rising living costs.

The report read, “Nigeria is supported by improved macroeconomic stability and favourable terms-of-trade effects, though higher prices for essentials are expected to further aggravate poverty and food insecurity.”

The IMF noted that growth across sub-Saharan Africa was expected to remain broadly stable at 4.3 per cent in 2026, although performance would vary widely among countries depending on policy choices, reform implementation and exposure to external shocks.

It said oil-importing and non-resource-intensive economies in the region were likely to suffer more from rising energy and food prices, while some larger economies had benefited from earlier stabilisation efforts despite facing weaker official development assistance and missing out on much of the artificial intelligence-driven global technology boom.

The Fund retained its forecast for Nigeria’s economic growth at 4.1 per cent in 2026, unchanged from its April outlook, before projecting a further increase to 4.3 per cent in 2027.

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Globally, the IMF projected economic growth of 3.0 per cent in 2026 and 3.4 per cent in 2027, compared with an average of 3.5 per cent in 2024 and 2025. It attributed the slowdown to the economic fallout from the war in the Middle East, although stronger technology investment driven by advances in artificial intelligence was expected to partly offset the impact.

The Fund also warned that inflationary pressures had intensified following higher energy prices. It said, “Global headline inflation is expected to increase from 4.1 percent in 2025 to 4.7 percent in 2026 before declining to 3.9 percent in 2027,” adding that the recent projections suggested “the disinflation trend in place since the beginning of 2024 has stalled.”

According to the IMF, renewed geopolitical tensions remain the biggest downside risk to the global economy. It warned, “The possibility of renewed Middle East conflict looms large and could extend commodity price volatility, further threaten supply chains, raise prices, and weigh on financial conditions.”

The report projected that higher energy costs would continue to feed into food prices. The report estimated that crude oil prices would rise by 32 per cent in 2026 compared with 2025 levels, while natural gas prices would increase by 22 per cent. Fertiliser prices were forecast to rise by 26 per cent, with food prices expected to increase by eight per cent because of higher energy, transport and fertiliser costs.

The IMF further cautioned that food insecurity could deteriorate if disruptions in energy and fertiliser markets persisted. It said, “Food insecurity could worsen materially if disruptions in fertilizer and energy markets intensify or linger, especially in low-income countries in South Asia and sub-Saharan Africa, whose food supply is provided largely by smallholder farmers unable to outbid competitors from wealthier nations.”

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The Fund advised governments to avoid broad-based fuel subsidies, tax cuts and price controls, arguing that such measures are expensive and often poorly targeted. Instead, it recommended temporary and targeted support for vulnerable households while maintaining policies aimed at restoring price stability.

The report stated, “Fiscal policy should avoid broad-based subsidies, tax cuts, and price controls, which are typically poorly targeted, fiscally costly, and politically difficult to unwind. If support is deemed necessary, it should be temporary, tightly targeted to vulnerable households, and embedded in a macroeconomic policy mix consistent with price stability.”

The IMF also urged countries to rebuild fiscal buffers, strengthen tax administration, improve spending efficiency and expand well-targeted social protection programmes to cushion the impact of rising living costs while preserving debt sustainability.

The PUNCH recently reported that Nigeria’s headline inflation rate rose to 15.93 per cent in May 2026, marking the third consecutive monthly increase in the annual inflation rate, as the organised private sector blamed geopolitical tensions in the Middle East, rising energy costs, insecurity and import bottlenecks for the worsening inflation.

The Consumer Price Index report released by the National Bureau of Statistics showed that inflation increased from 15.69 per cent in April to 15.93 per cent in May, extending a rebound that began in March after inflation fell slightly to 15.06 per cent in February.

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Oil tops $80 as Trump reignites Iran tensions

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Oil prices surged to $80 per barrel after the United States President, Donald Trump, declared that the interim ceasefire agreement with Iran was officially over.

According to data from oilprice.com, Brent crude rose from $72 to $74 on Tuesday before hitting $80 on Wednesday.

Trump on Wednesday dismissed the recently signed memorandum of understanding with Iran, declaring the MoU a “waste of time” following Iran’s attack on vessels transiting the Strait of Hormuz.

Brent crude for September delivery spiked 7.6 per cent to trade at $80 per barrel, while WTI crude for August delivery jumped to $75.40 per barrel.

Iran attacked three commercial vessels transiting the Strait of Hormuz on Tuesday, prompting retaliatory attacks by the United States.

An LNG tanker was struck on its port side, causing an engine room fire, while a Saudi-flagged supertanker suffered minor damage off the coast of Oman.

In response, the US Central Command conducted massive offensive airstrikes, hitting more than 80 military targets inside Iran.

According to CENTCOM, the operation utilised precision-guided 5,000-pound deep-penetrator munitions against multiple coastal areas, including Qeshm Island and Sirik, as well as the major port city of Bandar Abbas.

The Trump administration also revoked a temporary sanctions waiver that allowed Iran to sell oil and petrochemicals, cutting off a key revenue stream for Tehran.

The Khatam al-Anbiya Central Headquarters in Tehran, on the other hand, announced the formal closure of the Strait of Hormuz, warning all international commercial shipping that any further attempts to transit the waterway would face direct military intervention.

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The scale of the assault, much larger than previous reprisal actions, marked the effective collapse of the fragile interim ceasefire signed in June.

It was reported that freight rates for tankers operating in the Gulf have surged as shipowners demand higher risk premiums, while refiners in Asia are scrambling to secure alternative cargoes from West Africa, the United States and Latin America in case the Strait of Hormuz remains closed.

The renewed tension came at a time when Nigerians were awaiting significant reductions in fuel prices following the recent crash in oil prices from a high of $120 to $71 per barrel in recent days.

There are concerns that fuel prices may rise again if the renewed tension in the Middle East is not curtailed, to prevent oil prices from returning to the April level.

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