Economy
Crude Oil Soars as Trump Extends Tariff Deadline, Lowers Duty
By Adedapo Adesanya
The price of crude oil went up on Friday as President Donald Trump of the United States said he expects his administration to lower the proposed tariffs on Canadian oil from 25 per cent to 10 per cent and to impose duties on oil and gas around February 18.
Brent crude futures for April increased yesterday by 54 cents or 0.7 per cent to $76.54 per barrel and the US West Texas Intermediate (WTI) crude rose by 73 cents or 1 per cent to $73.48 a barrel.
For the week, the Brent and WTI benchmarks declined by 2.1 per cent and 2.9 per cent lower, respectively, marking the second straight week of losses as the markets expect the proposed tariffs would drive up fuel prices for Americans and hit global economic growth and demand for energy.
A tariff on oil imports could lead to lower fuel production at those facilities and drive up consumer costs.
Mr Trump had previously threatened a 25 per cent tariff on Canadian and Mexican exports to the US on February 1 and had not clarified if oil and gas would be exempt.
Canada and Mexico are the two largest crude oil exporters to the US. In its case, Canada sends 75 per cent of all its goods and services exports to the US and the economy would be badly hit by the promised tariffs.
The Prime Minister of Canada, Mr Justin Trudeau, said on Friday his country would respond immediately and forcefully if the US goes ahead with a threat to impose tariffs, warning Canadians that they could be facing tough times.
The market is also awaiting the meeting of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) scheduled for Monday.
OPEC+ is unlikely to alter plans to raise output gradually when it meets on Monday despite Trump urging OPEC and its de facto leader, Saudi Arabia, to lower prices.
This comes as US crude stockpiles posted a larger-than-expected increase. The latest data from the Energy Information Administration (EIA) revealed a build of 3.5 million barrels.
The rise was attributed to lower refinery output, partially caused by winter storms disrupting operations.
By Adedapo Adesanya
According to the latest data from the National Bureau of Statistics (NBS), Nigeria’s total merchandise trade stood at N35.2 trillion in the third quarter of 2024, representing an increase of 81.4 percent from the value recorded in the corresponding period of 2023 and a rise of 13.26 percent over the value recorded in the preceding quarter.
In the quarter under review, exports accounted for 58.3 per cent of total trade with a value of N20.5 trillion, showing an increase of 98 per cent rise over the value recorded in the third quarter of 2023 (N10.34 trillion) and 16.8 per cent compared to the value recorded in Q2 2024 (N17.5 trillion).
On the other hand, the share of imports accounted for 41.7 per cent of total trade in the third quarter of 2024, with the value of imports amounting to N14.7 trillion in Q3 2024.
This value indicates an increase of 62.3 per cent compared to the value recorded in Q3 2023 (N9.04 trillion) and 8.7 per cent over the value recorded in Q2 2024 (N13.5 illion).
With Nigeria’s exports outweighing its import, the merchandise trade balance for Q3 2024 remained positive at N5.8 trillion indicating an increase of 43.6 per cent compared to the value recorded in the preceding quarter.
A further breakdown showed that Nigeria’s exports trade continued to be dominated by crude oil exports, in the third quarter of 2024. Crude oil export was valued at N13.4 trillion representing 65.4 per cent of total exports while the value of non-crude oil exports stood at N7.08 trillion accounting for 34.6 per cent of total exports; of which non-oil products contributed N2.5 trillion or 12.2 per cent of total exports.
During the third quarter of 2024, total imports were valued at N14.7 trillion accounting for 41.7 per cent of total trade.
Nigeria’s top-ranked group import was mineral fuels with N5.14 trillion representing 35.0 per cent of total imports, this was followed by machinery and transport equipment with N3.8 trillion (25.8 per cent of total imports) and chemicals & related products with N1.9 trillion (13.5 per cent of total imports).
Nigeria imported goods mainly from Asia, valued at N7.3 trillion representing 49.7 per cent of total imports. This was followed by imports from Europe with N5.4 trillion or 36.5 per cent, America with N1.4 trillion or 9.8 per cent, while imports from Oceania stood at with N73.91 billion or 0.5 per cent in the third quarter of 2024.
Trade with African countries stood at N512.56 billion or 3.49 per cent of total imports; of which imports from ECOWAS countries amounted to N72.71 billion or 0.5 per cent of total imports.
Analysis by trading partners reveals that imports from China were valued at N3.6 trillion, representing 24.4 per cent of total imports. This was followed by imports from India with N1.7 trillion (11.3 per cent of total imports), Belgium with imports valued at N1.6 trillion or 11.1 per cent of total imports, United States of America with goods valued at N1.02 trillion (6.9 per cent of total imports) and goods from Malta valued at N766.81 billion or 5.2 per cent of total imports.
Exports by section revealed that Nigeria exported mainly mineral products valued at N18.1 trillion, or 88.5 per cent of the total export value, this was followed by exports of prepared foodstuffs; beverages, spirits and vinegar; tobacco worth N722.66 billion or 3.5 per cent of the value of total exports and vehicles, aircraft and parts thereof; vessels, with N667.11 billion or 3.3 per cent of the value of total exports.
Exports trade by region shows that Nigeria exported goods mainly to Europe with goods valued at N9.2 trillion or 45.1 per cent of total exports, followed by exports to Asia valued at N5.2 trillion or 25.3 per cent of total exports, while exports to America was valued at N3.4 trillion representing 16.5 per cent of total exports.
Exports to Africa stood at N2.5 trillion or 12.1 per cent of the total exports; out of which, good exported to ECOWAS countries was valued at N1.5 trillion.
Analysis of exports according to trading partners revealed that during the quarter under review, the main export destination was Spain with a value of N2.3 trillion or 11.1 per cent of total exports, followed by exports to the US with N1.7 trillion or 8.3 per cent of total exports, France with N1.6 trillion or 7.8 per cent of total export, the Netherlands with N1.4 trillion or 7 per cent of total exports, and exports to Italy with goods valued at N1.4 billion representing 6.7 per cent of total exports.
The NBS noted that these five countries collectively accounted for 40.8 per cent of the value of total exports in Q3, 2024.
By Aduragbemi Omiyale
Nigerians have been warned not to put their funds in Prevest investment scheme, describing it as illegal because the companis running the programme, Promiseland Estates Limited and Promiseland Building & Construction Limited, have not been authorised to operate in the country’s capital market.
This warning was given by the Securities and Exchange Commission (SEC) in a statement sighted by Business Post.
The regulator said entities which wish to play in the capital market must be duly registered to safeguard funds of the investing public.
“The commission hereby notifies the investing public that Promiseland Estates Limited and Promiseland Building & Construction Limited are not registered to operate in any capacity in the Nigerian capital market.
“Accordingly, the general public is advised to refrain from engaging with Promiseland Estates Limited and Promiseland Building & Construction Limited or any of their representatives in respect of any business pertaining or relating to the Nigerian capital market. Members of the public are specifically warned against patronizing or investing in the scheme PRO-VEST.
“The commission uses this medium to reiterate that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to the risk of fraud and potential loss of investment.
“The investing public is therefore reminded about the need to confirm the status of companies and entities offering investment opportunities on the commission’s dedicated portal before transacting with them,” the notice said.
In a related development, the agency said another investment scheme, My Share, operated by Uyj Multitrade Limited, which holds itself out as an investment adviser/fund manager in the Nigerian capital market, has not been licensed for the function.
It advised members of the public to “refrain from engaging with” the firm or any of their representatives in respect of any business/transaction pertaining or relating to investment in Nigerian capital market.
By Adedapo Adesanya
Six price gainers spurred the NASD Over-the-Counter (OTC) Securities Exchange back into the green territory by 0.44 per cent on Thursday, March 6.
Okitipupa Plc continued its upward movement as it further grew by N11.99 to close at N271.59 per unit compared with the preceding day’s N259.60 per unit, Newrest ASL Plc appreciated by N3.14 to trade at N34.52 per share versus N31.38 per share, and NASD Plc gained N1.87 to sell for N20.63 per unit, in contrast to Wednesday’s N18.76 per unit.
Further, Afriland Properties Plc rose by 31 Kobo to N22.90 per share from N22.69 per share, Central Securities Clearing System (CSCS) Plc expanded by 11 Kobo to sell at N23.50 per unit compared to N23.39 per unit, and UBN Property Plc improved by 10 Kobo to N1.85 per share from N1.75 per share.
On the flip side, FrieslandCampina Wamco Nigeria Plc shed 97 Kobo to sell for N37.05 per unit compared with midweek’s N38.02 per unit, and First Trust Microfinance Bank Plc dropped 5 Kobo to close the day at 47 Kobo per share, in contrast to the preceding session’s 52 Kobo per share.
When the bourse ended for the day, the market capitalisation was up by N8.28 billion to N1.899 trillion from N1.891 trillion and the NASD Unlisted Security Index (NSI) grew by 14.62 points to 3,352.94 points from 3,338.32 points.
The volume of securities transacted by investors during the session jumped by 3,307.5 per cent to 2.2 million units from the 65,936 units transacted a day earlier, the value of securities grew by 34,597.5 per cent to N79.4 million from N228,962, and the number of deals jumped by 236.36 per cent to 37 deals from the 11 deals recorded on Wednesday.
Impresit Bakolori Plc remained the most active stock by volume at the bourse since the start of the trading year with 533.9 million units worth N520.9 million, followed by Industrial and General Insurance (IGI) Plc with 69.7 million units worth N23.6 million, and Afriland Properties Plc with 17.2 million units sold for N352.7 million.
Also, Impresit Bakolori Plc was the most active stock by value on a year-to-date basis with a turnover of 533.9 million units worth N520.9 million, trailed by FrieslandCampina Wamco Nigeria Plc with 11.5 million units valued at N448.9 million, and Afriland Properties Plc with 17.2 million units sold for N352.7 million
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 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