By Adedapo Adesanya

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has taken steps to ensure that approval for permits is done within hours of application to drive investments into the country’s energy sector

The upstream oil sector regulator is slashing the time it takes to approve applications to revive idle oil wells from weeks to hours as Nigeria, which is Africa’s top crude producer, seeks to take advantage of high energy prices triggered by the conflict in the Middle East.

Bloomberg quoted people familiar with the process as saying the country is also fast-tracking approvals for evacuations and barges at production facilities and export terminals to let barrels get to buyers quickly, as buyers turn to suppliers such as Nigeria and Angola on the African continent.

The US-Israel war on Iran and its countermeasures, including the blockade of the Strait of Hormuz, which handicapped about 20 per cent of crude and liquified natural gas (LNG), have driven oil prices above $100 per barrel.

Citing a spokesman from NUPRC, it was said “speedy approvals” were being given “for all activities that could increase production.”

The recent surge in applications has come from mostly local oil companies seeking to re-enter old wells, with the regulator cutting down an approval process that previously took anywhere from two to six weeks to encourage activities.

Repairing older or suspended wells for production is cheaper compared with drilling new wells, which can take years of planning, with any potential crude taking an average of four weeks to reach the surface.

This is coming after the chief executive of the Nigerian National Petroleum Company (NNPC) Limited, Mr Bayo Ojulari, said the country is ready to increase oil production by about 100,000 barrels per day ‌over the next few months to make up for the ​crude shortfall resulting from the US-Israel war on Iran.

“We are ‌building ⁠that capacity,” he said, though he added “we are not like Saudi (Arabia), but we can contribute,” he said on Monday.

By Adedapo Adesanya

Four stocks weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.22 per cent on Tuesday, March 24, with Friesland Campina Wamco Nigeria Plc leading the pack after shedding N7.83 to trade at N108.73 per share compared with the previous day’s N116.00 per share.

Further, Food Concepts Plc lost 37 Kobo to close at N3.00 per unit versus Monday’s closing price of N3.37 per unit, Riggs Ventures Plc depreciated by 10 Kobo to 90 Kobo per share from N1.00 per share, and Industrial and General Insurance (IGI) Plc dipped by 4 Kobo to 53 Kobo per unit from 57 Kobo per unit.

Consequently, the market capitalisation of the NASD bourse went down by N5.40 billion to N2.477 trillion from the previous session’s N2.482 trillion, and the NASD Unlisted Security Index (NSI) fell by 9.08 points to 4,140.30 points from 4,149.38 points.

Business Post reports that despite the loss, the trading platform witnessed the rise in the share prices of four securities, led by Okitipupa Plc, which gained N13.50 to sell at N250.00 per share compared with the previous day’s N236.50 per share. Central Securities Clearing System (CSCS) Plc added N2.61 to close at N78.94 per unit versus N76.33 per unit, First Trust Mortgage Bank Plc appreciated by 19 Kobo to N2.08 per share from N1.89 per share, and Impresit Bakalori Plc improved by 18 Kobo to N2.01 per unit from N1.83 per unit.

Tuesday’s trading data showed that the value of transactions increased by 518.9 per cent to N45.6 million from N7.37 million, and the volume of trades increased by securities rose by 126.34 per cent to 933,125 units from 412,260 units, while the number of deals went down by 9.4 per cent to 29 deals from 32 deals.

CSCS Plc remained the most traded stock by value (year-to-date) with 39.1 million units worth N2.4 billion, trailed by Infrastructure Guarantee Credit Plc with 400 million units valued at N1.2 billion, and Okitipupa Plc with 6.4 million units traded for N1.2 billion.

Resourcery Plc maintained its position as the most traded stock by volume (year-to-date) with 1.1 billion units exchanged for N415.7 million, followed by Infrastructure Credit Plc with 400 million units sold for N1.2 billion, and Geo-Fluids Plc with 131.2 million units transacted for N505.8 million.

By Adedapo Adesanya

Pressure on the Naira against the Dollar eased on Tuesday, March 24, by 0.41 per cent or N5.75 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) to N1,382.63/$1 from the previous day’s N1,388.38/$1.

Also, the Nigerian currency gained N11.43 against the Pound Sterling in the official market during the session to sell for N1,848.86/£1 versus Monday’s closing rate of N1,860.29/£1, and improved its value against the Euro by N9.43 to settle at N1,599.98/€1 versus the preceding session’s price of N1,609.41/€1.

However, the Naira lost N17 against the Dollar at the GTBank forex desk to close at N1,388/$1, in contrast to the previous N1,371/$1, and closed flat against the US Dollar in the parallel market at N1,400/$1.

Analysts at Quest Merchant Bank said global factors are shaping investor sentiment, giving the local currency the needed strength to maintain stability in the currency market. The prolonged conflict in the Middle East has heightened risk aversion, reducing appetite for emerging-market assets.

The bank noted that de-escalation in geopolitical tensions, alongside Nigeria’s attractive yield environment, could help sustain offshore inflows and support the currency in the near term, though structural challenges remain.

As for the cryptocurrency market, profit-taking erased gains made by some tokens after it was reported that a one-month ceasefire in the Iran war could be announced soon as part of a wider deal, easing worries that gripped the markets.

Other terms of the deal reportedly include a dismantling of Iran’s existing nuclear capabilities and that country’s vow to “never seek” nuclear weapons.

The news was felt most immediately in the oil market, with Brent Crude dropping from $104 to below $100 in a few minutes.

Previously, US President Donald Trump announced a five-day pause on strikes against Iranian energy infrastructure.

Solana (SOL) depreciated by 1.4 per cent to $90.21, Ripple (XRP) slumped by 1.3 per cent to $1.40, Bitcoin dipped 0.6 per cent to $70,235.96, Ethereum (ETH) declined by 0.4 per cent to $2,143.38, and Binance Coin (BNB) dropped 0.3 per cent to sell for $636.19.

On the flip side, Cardano (ADA) rose 1.4 per cent to $0.2652, TRON (TRX) added 0.7 per cent to close at $0.3077, and Dogecoin (DOGE) appreciated by 0.3 per cent to $0.095, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.