Economy
Nigeria’s Revenue Rises as Oil Trades Above $58
By Adedapo Adesanya
The funding of the 2021 budget of Nigeria received a big boost on Wednesday when crude oil, the major source of revenue for the country, traded above $58 per barrel.
The oil benchmark for the year was $40 per barrel but yesterday, the Brent crude, under which Nigeria’s oil grade is priced, appreciated by $1.07 or 1.86 per cent.
This boost was triggered by a drop in the United States inventories as well as the decision of oil allies not to make recommendations about changing their production levels.
As a result, the West Texas Intermediate (WTI) crude futures appreciated by $1.03 or 1.88 per cent to sell at $55.79 per barrel at the midweek trading session.
According to a report from the Energy Information Administration (EIA), crude oil inventory reduced by one million barrels for the last week of January.
A day earlier, the American Petroleum Institute (API) estimated crude oil inventories had fallen by 4.26 million barrels in the reporting period.
The EIA estimate compared with a build of 4.4 million barrels reported for the third week of January and analyst expectations for a modest build of 367,000 barrels.
Oil prices have been on a steady rise recently based on a high compliance rate with production cuts by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) and a weaker dollar, which made commodities cheaper for international buyers. The outlook is also bullish, with the futures price trend suggesting tighter oil supply on global markets.
Forecasts are also getting increasingly optimistic, with Goldman Sachs analysts recently saying they expected oil demand to rebound to 100 million barrels per day as soon as this year.
Also, prices also found support as the Joint Ministerial Monitoring Committee (JMMC) of the OPEC+ group wrapped up their monthly meeting on Wednesday and as expected did not make any recommendation about changing the oil production levels of the alliance.
The JMMC meeting this month was more of a formality rather than disagreements and bargaining like the previous meeting since OPEC+ decided in January how it would proceed with the production cuts for February and March.
This month, the OPEC+ alliance is easing its production cuts by just 75,000 barrels per day, of which 65,000 barrels per day will be given to Russia and another 10,000 barrels per day to Kazakhstan.
In March, Russia and Kazakhstan are set to boost their oil production by another 65,000 barrels per day and 10,000 barrels per day, respectively.
However, all other members of the pact are keeping their production levels from January with OPEC’s top producer, Saudi Arabia cut its production by an additional 1 million barrels per day beyond its quota this month and next.
So, this month’s JMMC meeting only took stock of the oil market situation and the compensation schedules for those producers who haven’t fully complied with the cuts since the deal was enacted in May 2020.
Those producers who still need to compensate for over-production have to submit their schedules by February 15.
The next JMMC meeting will be held on March 3, and this is where discussions are expected to heat up again as the OPEC+ group will have to decide on the production levels for April, and possibly beyond.
Support could also be found as the US President Joe Biden’s coronavirus rescue plan, and two of its key economic provisions, have broad support as Democrats try to push it through Congress.
The White House is reaching for a bipartisan bill as Democrats pulled a Senate majority, voting 50-49, to start a lengthy process for approving Biden’s bill with or without the opposing Republicans support. The goal is a passage by March.
By Adedapo Adesanya
The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.
The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.
Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.
At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.
The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.
When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.
Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.
By Adedapo Adesanya
The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.
It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.
The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.
At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.
As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.
A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.
The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.
The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.
The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.
Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
By Aduragbemi Omiyale
The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.
In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.
However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.
In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.
Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.
Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.
“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.
“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.
His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.
“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.
“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism8 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking6 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN