Benin drops its WTO candidate in support of Nigeria’s Okonjo-Iweala

Ngozi Okonjo-Iweala

The Beninese candidate Éloi Laourou is no longer in the running to take over the post of Brazilian national Roberto Azevêdo as Director-General of the World Trade Organization (WTO).

Benin, which announced the withdrawal of Laourou’s candidacy to its partners at the International Organisation of La Francophonie within the WTO in a letter dated 12 June, has also decided “to support the candidacy of the Federal Republic of Nigeria, in the person of Dr Ngozi Okonjo-Iweala.”

The news, expected to be formally made public early this week, was confirmed by a source within the Beninese government.

“We’ve reviewed the candidates and it’s clear that Ngozi Okonjo-Iweala has the best credentials to win the nomination for Africa once and for all,” the source said.

In the letter from the Permanent Mission of the Republic of Benin to the United Nations Office and other International Organisations based in Geneva, dated 12 June and addressed to the diplomats of OIF member states, the Beninese authorities insisted on this point.

Their decision, they wrote, “is inspired by the high sense of seeking consensus around a candidate which will be endorsed by the African Union.”

However, with the withdrawal of Laourou’s bid, a consensus has yet to be found. Besides Nigeria’s Okonjo-Iweala, two other African candidates are still in the running: Kenya’s Amina Mohamed and Egypt’s Abdel Hamid Mamdouh.

CBN under pressure to devalue the naira

Recent developments in the foreign exchange market are putting the Central Bank of Nigeria under intense pressure to further devalue the naira.

The currency has been experiencing free fall since November 25, 2014 when the CBN Monetary Policy Committee devalued it by eight per cent from 155 to 168 against the United States dollar.

Following Saturday’s announcement of the postponement of the general elections by six weeks, the naira on Monday plunged from 188 to 200 against the dollar.

The Bankers’ Committee gave the hint of further devaluation on Thursday just as the nation’s External Reserves dropped by $1bn in 12 days.

The committee, which comprises the Central Bank of Nigeria governor, the deputy governors, chief executive officers of Deposit Money Banks and other stakeholders, said the managers of the economy, including the CBN, were currently seeking a new level to devalue the already battered currency.

Members of the committee met for over three hours in Lagos to review developments in the banking sector and the economy, among other issues.

The meeting, which was chaired by the CBN Governor, Godwin Emefiele, later appointed the Managing Director, Guaranty Trust Bank Plc, Segun Agbaje; Managing Director, FCMB, Ladi Balogun; Managing Director, CitiBank Nigeria, Omar Hafeez; and Director, Banking Supervision, CBN, Tokunbo Martins, to brief the press on some of its deliberations.

Oil prices are going to stay low - for now

Demand for oil over the near-term is likely to remain lackluster, given slow economic growth in most of the developed world and emerging markets. Meanwhile, conservation measures and environmental pressures are reducing long-term oil demand. Oversupply is also likely to persist, at least for the foreseeable future.

Some dispute that the oil prices have entered a new range of $20 to $60 per barrel. Others see the fall as temporary, seizing the opportunity to purchase assets cheaply.

Saudi Prince: Oil will never return to $100

Saudi Prince Alwaleed believes oil will never return to $100, which plunged below $46 a barrel on Monday for the first time since the spring of 2009.