By Adedapo Adesanya

The Naira recorded a N10.24 or 0.72 per cent gain on the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, January 6, to close at N1,419.07/$1 compared with the previous day’s N1,429.31/$1, extending the stellar start to the year.

The local currency also improved its value against the Pound Sterling in the same market window yesterday by N2.98 to trade at N1,917.20/£1 versus N1,920.27/£1 and gained N7.12 on the Euro to end at N1,660.31/€1 compared with Monday’s closing price of N1,667.43/€1.

At the GTBank forex counter, the domestic currency appreciated against the greenback on Tuesday by N3 to finish at N1,435/$1 versus the previous value of  N1,438/$1 and at the parallel market, it maintained stability on the Dollar at N1,470/$1.

The Naira gains come amid ease in demand seen in the softer market activity at the start of the year, alongside reduced participation from offshore investors.

FX inflows into the NFEM window declined by 20.67 per cent week on week to $593.70 million from $748.40 million in the previous week, according to a weekly report by Coronation Merchant Bank.

Market analysts expect that the Central Bank of Nigeria (CBN) will maintain its strategic interventions in the FX market and implement initiatives aimed at boosting liquidity and curbing speculative activities.

Meanwhile, the CBN’s gross external reserves edged up by 0.58 per cent, rising by $264.56 million at the start of the year to $45.50 billion, and increasing further to $45.56 billion as of January 2, 2025.

A look at the digital currency market showed that it was in red, triggered by renewed selling pressure with market analysts saying the digital currencies are starting the year in recalibration mode rather than retreat.

After earlier gains. Ripple (XRP) slumped by 5.2 per cent to $2.25, Cardano (ADA) declined by 2.9 per cent to $0.4111, Dogecoin (DOGE) shrank by 2.6 per cent to $0.1479, Bitcoin (BTC) slid by 1.4 per cent to $93,625.47, Litecoin (LTC) went down by 1.0 per cent to $82.90, and Solana (SOL) lost 0.4 per cent to sell $138.76.

On the flip side, Binance Coin (BNB) appreciated by 0.7 per cent to $914.53, and Ethereum (ETH) improved by 0.3 per cent to $3,248.36, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.

By Adedapo Adesanya

Oil was down on Tuesday as the market weighed expectations of ample global supply this year against uncertainty around Venezuelan crude output after the US capture of President Nicolas Maduro.

Brent crude futures declined by 69 cents or 1.1 per cent to $61.07 a barrel and the US West Texas Intermediate (WTI) crude tumbled by 79 cents or 1.4 per cent to $57.53 a barrel.

Oil supply will be sufficient in 2026, with or without an increase in production from Venezuela, which is a member of the Organisation of the Petroleum Exporting Countries (OPEC).

US President Donald Trump wants the big American oil firms to return to Venezuela and invest in rebuilding the oil infrastructure in the country holding the world’s biggest proven oil reserves, estimated at about 303 billion barrels.

Venezuela, a founding member of OPEC, has more oil reserves than each of its fellow OPEC members and top exporters in the Gulf, including Saudi Arabia, Iraq, the United Arab Emirates (UAE), and Iran.

With Maduro out, US oil giants are set to invest billions of US Dollars to fix the oil infrastructure and start making money for Venezuela, according to President Trump.

Venezuela’s oil sector has long been in decline, due in part to underinvestment and US sanctions. Oil production from the country averaged 1.1 million barrels per day last year. Exxon, ConocoPhilips, and Chevron are some of the names that could make return to the South American country.

Morgan Stanley analysts said in a note on Tuesday that global oil demand likely grew by around 900,000 barrels per day last year, compared to a historical trend rate of 1.2 million barrels per day.

OPEC supply grew 1.6 million barrels per day and non-OPEC supply grew about 2.4 million barrels per day between the fourth quarters of 2024 and 2025, the Morgan Stanley analysts said.

The bank said oil markets could be in a surplus of as much as 3 million barrels per day in the first half of 2026.

Saudi Arabia has cut the price of its flagship crude grade Arab Light loading for Asia in February, in the third consecutive monthly reduction amid ample supply and weakened Middle Eastern benchmarks.

Saudi Arabia’s decision to cut the prices of all its crude grades follows this weekend’s short OPEC+ meeting, at which the eight producers implementing the cuts reaffirmed they would keep oil production steady through the first quarter of 2026.

By Aduragbemi Omiyale

The chief executive of the Nigerian Exchange (NGX) Group Plc, Mr Temi Popoola, and his counterpart at the NGX Limited, Mr Jude Chiemeka, have expressed delight over the value of the bourse breaking the N100 trillion ceiling on Monday.

Yesterday, the domestic stock exchange gained 1.74 per cent, with the market capitalisation rising by N1.869 trillion to N101.807 trillion ($71.15 billion) from N99.938 trillion ($69.61 billion) and the All-Share Index (ASI) growing by 2,725.86 points to 159,218.22 points from last Friday’s 156,492.36 points.

The growth was buoyed by renewed investor demand and broad-based gains across listed stocks, resulting in a year-to-date returns of 2.32 per cent.

It was observed that the rally was driven by strong buying interest in stocks such as Cadbury Nigeria, Fidson Healthcare, and Champion Breweries, reflecting the traditional “January Effect” that often characterises early-year market activity.

Investor sentiment strengthened markedly, with market breadth improving to 9.13x as 73 equities recorded gains against eight decliners, signalling widespread participation in the rally.

“The equities market capitalisation crossing the N100 trillion mark is a defining milestone for Nigeria’s capital market and a clear signal of renewed investor confidence as the year begins.

“It reflects the market’s growing depth, resilience, and ability to respond positively to improving macroeconomic conditions and structural reforms,” Mr Popoola stated, adding that sustained collaboration between market stakeholders and regulators has played a key role in strengthening market credibility.

“Over the past two years, closer alignment between market operators, policymakers, and the Securities and Exchange Commission (SEC) has enhanced transparency, liquidity, and investor protection, reinforcing the Exchange’s role in mobilising long-term capital for economic growth,” he said.

On his part, Mr Chiemeka said, “The breadth of the market tells a positive story. We are seeing strong participation across banking, industrial, and consumer stocks, alongside rising trading volumes, which suggest growing investor confidence and a more active market at the start of the year.”