Economy
Effective Fiscal, Monetary Policies Will Revamp Nigerian Economy—Standard Chartered Bank
By Adedapo Adesanya
Standard Chartered Bank (SCB) Nigeria, through its forum, has said that Nigeria needs to balance effective fiscal and monetary policies to awaken its ailing economy.
This was the crux of the matter at the company’s recently hosted Global Research Briefing which sought to identify the key concerns for the Nigerian financial market, pool solutions from a cross-section of financial and oil sector experts, and chart a course in a bid to reverse the negative situation.
This is coming as the world continues to contend with the effects of the COVID-19 pandemic.
Held in Lagos, the event provided a conducive environment for market leaders to dialogue on an array of key economic issues ranging from the expected implementation of foreign exchange and monetary policy reforms to interventions needed to address the challenges in the oil and gas sector.
In his welcome remarks, the CEO of Standard Chartered Bank Nigeria, Mr Lamin Manjang, noted that the session came at a time of great uncertainty and volatility both globally and locally, marked by the spectre of high inflation and slow growth.
“We have seen a very aggressive tightening of monetary policy across almost all central banks in the world. In Nigeria, we have seen the same phenomenon of high inflation. But it’s not all doom and gloom. We have been through similar challenges in the past, and we eventually came out of it,” he stated.
During her keynote presentation, SCB’s Regional Head of Research, Africa and the Middle East, Ms Razia Kahn, highlighted the need for greater reassurance on FX and other policy reforms for Nigeria to attract foreign investor participation.
“In terms of the policy response, Nigeria has perhaps been more tested than many other economies. A lot of the transmission of the different pressures into the great slowdown has been exacerbated by the policy decisions in Nigeria. Still, Nigeria stands apart from many of its African counterparts simply because it is seen as an economy that has scale,” she explained.
Addressing the challenges within the petroleum industry, Ms Khan moderated an Oil and Gas panel session which included Mr Leke Ogunlewe, former Head of Global Banking/Corporate and Institutional Banking, SCB; Mr Chikezie Nwosu, MD/CEO, Waltersmith Petroman Oil Limited; and Mr Femi Ogunbi, Treasurer, ExxonMobil.
Speaking on challenges brought on by the implementation of the Petroleum Industry Act, Mr Ogunlewe noted that there were concerns regarding the regulation of the significant investments of oil & gas companies in social initiatives, particularly as they relate to their host communities.
“We now have a regulator that monitors these organizations in a way that is unfavourable to the communities. I’m curious to see how that will work out because I know from experience that several oil & gas companies spend much more than the PIA stipulates,” he stated.
In his remarks, Mr Ogunbi underscored the need for the market forces of demand and supply to play a greater role in Nigeria’s oil & gas policies. According to him, Nigeria needs more enablers and respect for market forces in virtually every sector.
Discussing the need to attract Foreign Direct Investment, the Financial Markets panel included Mr Ayodeji Adelagun, Head, Financial Markets, Standard Chartered Bank Nigeria; Ms Elizabeth Oguegbu, Head of Financial Markets Sales, Standard Chartered Bank Nigeria; Mr David Alao, CEO, Leadway Asset Management Company; and Ms Tumi Sekoni, MD, FMDQ Exchange.
During the discussion, Mr Alao noted that serious FX reforms are necessary for the international investing public to regain confidence in Nigeria, just as Ms Sekoni called attention to the likelihood of FX reforms being deferred till after the coming elections.
Speaking at the session, Mr Olukorede Adenowo, Executive Director, Corporate Commercial and Institutional Banking, said, “As a global bank with a rich network of experience and expertise in Africa and the Middle East, we are in a unique position to support the massive shift of capital towards sustainable finance, which has become a priority for stakeholders, investors and clients, alike. The people and businesses we serve are the engines of trade and innovation and are central to the transition to a fair, sustainable future.
“The Global Research Briefing provided an opportunity for us to share insights into the challenges within the country and, more so, the tremendous opportunities that exist as well as providing solutions that governments can take to make their markets more attractive for investment.
“We are determined to support our clients with identifying such opportunities and developing significant sustainable finance solutions to grow their businesses. This will ensure that we can deliver on our aspiration to be the Bank that’s continuously driving commerce and prosperity for our clients and the economies we operate in.’’
By Aduragbemi Omiyale
The chief executive of the Nigerian Exchange (NGX) Limited, Mr Temi Popoola, has called for regional collaboration among African nations for a stronger capital market.
Speaking at the launch of the Ethiopian Securities Exchange (ESX) recently, he stated that working together would unlock the continent’s economic potential, especially with innovative market solutions.
He disclosed that strategic investment of the Nigerian bourse in ESX underscores its leadership in advancing Africa’s capital market infrastructure.
“The launch of ESX represents a pivotal moment for Ethiopia and the broader African financial landscape.
“ESX will serve as a crucial mechanism for capital formation and market liquidity, driving sustainable economic growth,” Mr Popoola said.
Expounding on NGX Group’s investment rationale, he highlighted Ethiopia’s immense market potential and the shared vision of fostering economic growth through innovation.
“Our partnership transcends traditional investment parameters.
“It is about ensuring that ESX evolves into a key player in Africa’s financial ecosystem, enabling cross-border investments and setting benchmarks for market development,” he said.
Mr Popoola also drew parallels with global success stories like India, which has leveraged its capital markets to achieve significant economic transformation.
He emphasized the importance of responsible market opening to attract local and continental capital, noting, “By following this path, Ethiopia can become a financial hub in Africa.”
Drawing from NGX Group’s six decades of experience, Mr Popoola shared insights on diversifying financial instruments and expanding access to investment opportunities.
“With the right mix of innovation, policy support, and regional collaboration, Ethiopia’s capital market can play a transformative role in driving economic development and establish itself as a leader in Africa’s financial ecosystem,” he concluded.
On his part, the Prime Minister of Ethiopia, Mr Abiy Ahmed, lauded the launch of ESX as a transformative milestone in the country’s journey toward economic modernization.
“Today, we have officially rung the bell to launch the Ethiopian Securities Exchange, our nation’s first stock exchange,” the Prime Minister announced on X.
“This is a call to global investors: Ethiopia offers immense potential, a fast-growing economy, and a clear trajectory toward shared prosperity,” he added.
The chief executive of ESX, Mr Tilahun Esmael Kassahun, expressed confidence in the partnership with NGX Group.
“We are pleased to welcome NGX Group as a strategic partner, building upon the existing support we continue to receive from them,” he said, emphasising the value of NGX Group’s expertise in shaping ESX’s growth and success.
With the ESX poised to redefine Ethiopia’s financial landscape, NGX Group’s involvement highlights the critical role of partnerships and shared expertise in advancing Africa’s economic narrative.
By Adedapo Adesanya
Daily average oil production in Nigeria rose by 152, 000 barrels per day in November 2024, according to the latest data by the Organization of the Petroleum Exporting Countries (OPEC).
According to the OPEC Monthly Oil Market Report (MOMR) for December 2024, the country’s production, including condensates rose by 11 per cent from 1.333 million barrels in October to 1.486 million in November 2024.
The analysis puts the daily increase to 152,000 barrels per day and about one million barrels increase between October and November last year.
This is as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in its latest oil production data indicated that on a month-on-month basis, daily average oil output in December 2024 declined by 1.35 per cent from 1.690 million barrels per day recorded in November 2024 to 1.667 million barrels per day.
Data from the commission also indicated that daily peak oil production in December 2024 was 1.79 million barrels per day while the lowest daily production was 1.57 million barrels per day
Cumulatively, oil output in December 2024, was 51.69 million barrels, a marginal increase of 1.9 per cent when compared to 50.71 million barrels produced in November 2024.
Further analysis of the data showed that the highest oil output in December 2024 was recorded at Forcados Terminal at 8.49 million barrels followed by Bonny Terminal, 7.78 million barrels and Qua Iboe, 4.15 million barrels.
The data showed without condensate, daily oil production was 1.484 million, indicating that Nigeria, again, failed to meet its oil production quota of 1.5 million barrels per day allotted to it by OPEC.
A recent survey by Reuters, however, shows that Nigeria crossed the 1.5 million barrels per day target in December.
The December 2024 average daily oil output also means that Nigeria failed to meet the 1.7 million barrels per day benchmark set for the 2024 budget all through the year.
NUPRC data on daily average production showed that oil production including condensate in January 2024 was 1.64 million barrels per day; February, 1.53 million barrels per day; March, 1.44 million barrels per day; April, 1.45 million barrels per day; May, 1.47 million barrels per day; June, 1.50 million barrels per day; July, 1.53 million barrels per day; August, 1.57 million barrels per day; September, 1.54 million barrels per day, October, 1.54 million barrels per day November, 1.69 million barrels per day and December, 1.67 million barrels per day.
By Dipo Olowookere
The trio of Wema Bank, FBN Holdings, and Universal Insurance topped the activity chart of the Nigerian Exchange (NGX) Limited last week with a turnover of 1.679 billion shares worth N20.838 billion transacted in 4,922 deals, contributing 35.74 per cent and 24.50 per cent to the total trading volume and value, respectively.
Data from Customs Street showed that in the five-day trading week, investors bought and sold 4.698 billion stocks valued at N85.043 billion in 72,562 deals versus the 2.618 billion stocks sold for N69.742 billion in 47,953 deals in the preceding week.
The financial services industry attracted the attention of the market participants with 3.470 billion equities worth N40.791 billion traded in 34,364 deals, contributing 73.86 per cent and 47.97 per cent to the total trading volume and value, respectively.
The services sector followed with 407.032 million shares worth N2.226 billion in 4,996 deals, and the ICT space transacted 237.680 million stocks valued at N3.628 billion in 5,280 deals.
Business Post reports that 51 shares appreciated in the week versus 82 shares in the previous week, 39 equities depreciated compared with 18 equities a week earlier, and 62 stocks closed flat versus 52 stocks in the preceding week.
Multiverse was the best-performing stock with a a price appreciation of 53.42 per cent to N12.35, Honeywell Flour gained 31.67 per cent to close at N10.02, DAAR Communication expanded by 25.71 per cent to 88 Kobo, MTN Nigeria leapt by 21.00 per cent to N242.00, and NCR Nigeria soared by 20.66 per cent to N7.30.
On the flip side, Sunu Assurances was the worst-performing stock after it went down by 36.52 per cent to N7.30, Caverton shed 15.00 per cent to N2.38, Consolidated Hallmark slumped by 15.00 per cent to N3.40, RT Briscoe slipped by 14.33 per cent to N2.57, and Jaiz Bank depreciated by 10.77 per cent to N2.90.
At the close of business, the All-Share Index (ASI) and the market capitalisation gained 1.80 per cent to close the week at 105,451.06 points and N64.303 trillion, respectively.
Also, all other indices closed higher apart from the insurance, AFR Bank Value, AFR Div Yield, MERI Value, consumer goods, energy, and industrial goods, which depreciated by 6.91 per cent, 0.08 per cent, 1.11 per cent, 0.17 per cent, 0.34 per cent, 0.34 per cent and 0.26 per cent, respectively, as the ASeM closed flat.
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