Economy
Dangote Refinery to Reduce Nigeria’s FX Pressure by 40%
By Adedapo Adesanya
The chief executive of Dangote Group, Mr Aliko Dangote, says the injection of petrol from his 650,000 barrels per day refinery into the domestic market will help ease Nigeria’s foreign exchange pressure by 40 per cent.
This was one of his soundbites from his recent interview with Bloomberg Television in New York earlier this week.
“We will sell the crude in Naira after we have bought in Naira. So now, we are currently working out with the committee that the exchange rate is going to be priced. It is going to be normal pricing, you know, if crude is at $80, we will pay that price at an agreed exchange rate.
“And then, we will also sell in the domestic market. What that will do is that it’s going to remove 40 per cent pressure on the naira. So because see, the petroleum products consume about 40 per cent of foreign exchange, so you know, and then, you know, it’s like you have 40 per cent of demand been taken out so that can actually stabilize the naira and even if they subsidise, they would know what they are paying for,” the businessman said.
He said that the idea was to leverage an agreement that would serve its business operation and the government.
“The deal is to give the government something that they want. It’s also a win-win situation for all and it would benefit the country.
“Currently, discussions are still ongoing to determine the details of the agreement. They are working out something that I think would be a win-win between us and the NNPC.
“The agreement is very robust. Well, first of all, we would have energy security where they will give us crude. For example, in October, they’re going to give us 12 million barrels, which is on average, about 390,000 barrels a day, which will sell both gasoline, diesel, and aviation fuel,” he explained.
He also revealed the details of the pricing disagreement that occurred with the NNPC Limited.
He said the national oil company bought its current stock from the refinery at a cheaper price than its imported fuel but gave a uniform price for all products.
“There wasn’t really a disagreement, per se. NNPC bought from us on the 15th of September at the international price, which they also bought, about 800,000 metric tons of gasoline imported. So the one that they bought from us actually is cheaper than the one they are importing.
“And so when they announced our price, the guy, I don’t know whether he was authorized. It wasn’t really the real price. What they have announced is most likely that is what it cost them, including profit and other expenses.
“And then the other one is one that they imported. But the people don’t know how much they spend in terms of imports, but their importation is almost, maybe about 15 per cent more expensive than ours, you know.
“So what they are supposed to do is to sell at a basket price, or if they want to remove subsidy, they can announce that they will remove subsidy, which is okay, everybody you know will adjust it.”
Mr Dangote said that discussions are still ongoing and a detailed agreement will be finalised this week on the planned crude oil sales anticipated to begin in October.
By Adedapo Adesanya
The Abuja Chamber of Commerce and Industry (ACCI) has expressed optimism for significant business growth and economic development in 2025.
In his New Year’s message, the ACCI President, Mr Emeka Obegolu, lauded the resilience of the business community in overcoming the economic challenges of 2024.
He commended the business community in the Federal Capital Territory (FCT) and its environs, for their commitment to innovation and growth, while expressing hope for renewed opportunities in the New Year.
He called on governments at all levels to harmonise tax policies and address the challenges of multiple taxation and high operational costs.
He also urged the administration of President Bola Tinubu to prioritise improving the ease of doing business and Nigeria’s global competitiveness.
“Streamlining regulations, eliminating administrative bottlenecks, and implementing business-friendly policies are crucial steps.
“The government should also improve access to financing and establish a reliable database of active businesses to support Micro, Small, and Medium Enterprises (MSMEs), which play a vital role in the Nigerian economy,” Mr Obegolu said.
He also commended the N4.06 trillion allocation for infrastructure in the 2025 budget.
He noted its potential to boost productivity, create jobs, and foster economic growth in sectors such as transport, energy, and housing.
He welcomed the government’s macroeconomic stabilisation goals, including reducing inflation and stabilising the exchange rate, as crucial steps toward improving the business environment and attracting investment.
Mr Obegolu emphasised the importance of effective budget implementation, advising the government to adhere to timelines, ensure transparency, and adopt a results-driven approach to maximise the impact of allocated funds.
He also called for cautious revenue projections, improved collection mechanisms to reduce leakages and the adoption of balanced tax policies that supported businesses.
The ACCI president reaffirmed the Chamber’s commitment to collaborating with the government to align policies with business realities and promote private-sector-led growth.
He also advocated for increased investments in green initiatives and inclusive strategies to benefit rural and marginalised communities.
“On behalf of the Executive Council and members of ACCI, I wish Nigerians a prosperous and fulfilling 2025, filled with growth, innovation, and success,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange was pulled down by 0.70 per cent by profit-takers in the final trading session of 2024 on Tuesday, December 31.
As a result of this, the bourse’s investors lost N7.29 billion, leaving the market capitalisation at N1.029 trillion compared with the preceding day’s N1.036 trillion.
In the same vein, the NASD Unlisted Security Index (NSI) went down by 21.25 points at the close of business to 3,002.68 points from the 3,023.93 points recorded at the previous session.
Business Post the alternative stock exchange recorded five price losers, with Acorn Petroleum Plc declining by 14 Kobo to trade at N1.40 per share, in contrast to Monday’s closing value of N1.54 per share.
Further, UBN Property Plc lost 16 Kobo to end at N1.82 per unit compared with the previous session’s N1.98 per unit, Central Securities Clearing System (CSCS) Plc weakened by 90 Kobo to N21.00 per share from N21.90 per share, 11 Plc lost N4.00 to close at N211.00 per unit versus the previous day’s N215.00 per unit, and FrieslandCampina Wamco Nigeria Plc crashed by 39 Kobo to finish at N40.61 per share, in contrast to the preceding session’s N41.00 per share.
Conversely, Industrial and General Insurance (IGI) Plc appreciated by 2 Kobo to end the session at 17 Kobo per unit compared with Monday’s closing price of 15 Kobo per unit, Air Liquide Plc improved by 80 Kobo to N8.80 per share from the preceding closing rate of N8.00 per share and Geo-Fluids Plc rose by 29 Kobo to sell at N3.34 per unit versus N3.05 per unit.
Yesterday, the volume of securities traded in the final session of the year depreciated by 0.64 per cent to 2.68 million units from 2.70 million units, and the value of shares traded yesterday went down by 37.50 per cent to N9.2 million from N14.7 million, while the number of deals increased by 59.1 per cent to 35 deals from 22 deals.
Aradel Holdings Plc, which exited the market a few months ago, remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, trailed by Okitipupa Plc with 752.4 million units valued at N7.8 billion, and Afriland Properties Plc with 297.7 million units sold for N5.3 billion.
Also, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units worth N4.0 billion, trailed by Okitipupa Plc with 752.4 million units valued at N7.8 billion, and Afriland Properties Plc with 297.7 million units sold for N5.3 million.
By Dipo Olowookere
The last trading session of 2024 on the floor of the Nigerian Exchange (NGX) Limited ended on a bearish note on Tuesday with a 0.22 per cent loss.
The decline occurred despite the bourse closing with 36 appreciating stocks and 27 depreciating stocks, implying a positive market breadth index and strong investor sentiment.
Eterna and Union Dicon Salt topped the losers’ chart after they shed 10.00 per cent each to settle at N24.30 and N7.20 apiece, Champion Breweries lost 8.19 per cent to trade at N3.81, PZ Cussons depreciated by 6.90 per cent to N24.30 and Cadbury Nigeria tumbled by 6.52 per cent to N21.50.
On the flip side, Prestige Assurance, Beta Glass, and Universal Insurance gained 10.00 per cent each to quote at N1.21, N64.90, and 66 Kobo, respectively, as Okomu Oil grew by 9.98 per cent to N444.00, and Thomas Wyatt increased by 9.88 per cent to N1.89.
Yesterday, the insurance space gained 4.93 per cent, the energy index rose by 0.43 per cent, and the industrial goods counter appreciated by 0.17 per cent.
However, the banking sector depreciated by 0.34 per cent and the consumer goods industry went down by 0.29 per cent.
At the close of transactions, the All-Share Index (ASI) shrank by 222.95 points to 102,926.40 points from 103,149.35 points and the market capitalisation decreased by N136 billion to N62.763 trillion from N62.899 trillion.
During the session, investors transacted 437.8 million shares valued at N40.3 billion in 8,830 deals, in contrast to the 641.1 million shares worth N15.5 billion traded in 13,778 deals in the preceding day, representing a jump in the trading value by 160.00 per cent, and a slip in the trading volume and number of deals by 31.71 per cent and 35.91 per cent, respectively.
Access Holdings finished the day as the busiest equity with 30.3 million units sold for N723.9 million, Universal Insurance traded 24.6 million units worth N16.1 million, Prestige Assurance exchanged 24.3 million units valued at N29.3 million, SAHCO transacted 22.2 million units worth N662.2 million, and Aradel Holdings traded 21.7 million units valued at N13.0 billion.
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