Economy
FX inflow into Nigerian Oil Sector Plunges 72.6% in 2020
By Adedapo Adesanya
The foreign capital inflow into the Nigerian oil and gas industry dipped by 72.6 per cent to $53.51 million in 2020 from $195.61 million in 2019.
According to data from the National Bureau of Statistics (NBS) in its Nigerian Capital Importation Report for the fourth quarter and full-year 2020, the oil and gas sector accounted for 0.55 per cent of total capital imported into the country in 2020, compared to 0.85 per cent in 2019.
The NBS disclosed that total capital imported into all sectors of the Nigerian economy in 2020 stood at $9.68 billion, 57.8 per cent lower than the $22.941 billion recorded in 2019.
Giving a breakdown of the inflow, the NBS noted that $10.09 million; $6.55 million; $25.03 million and $11.83 million were recorded in the oil and gas sector in the first, second, third and fourth quarters of 2020 respectively; compared to $17.22 million; $139.73 million and $38.66 million recorded in the first, second and third quarters of 2019 respectively.
In general, total foreign capital inflow into the Nigerian economy in the first, second, third and fourth quarter of 2020 stood at $5.85 billion, $1.29 billion, $1.46 billion and $1.07 billion respectively; compared to $8.508 billion, $6.052 billion, $5.627 billion and $2.753 billion in the first, second, third and fourth quarters of 2019, respectively.
The decline was attributed to the COVID-19 pandemic, which forced many countries worldwide to shut down significant sectors of their economies, while movement was curtailed globally for the most part of the year.
COVID-19 began in China at the end of 2019 and spread to other countries gradually, until it was declared a global pandemic by the World Health Organisation (WHO), with nations commencing lockdown measures from February 2020.
As a result of the pandemic, the price of crude oil price fell below zero Dollar to a barrel for the first on record in April 2020, as oil producers ran out of space to store the oversupply of crude oil.
The price of the global benchmark crude futures, Brent, went down to $16 per barrel.
For the price of US crude oil, West Texas Intermediate, it crashed from $18 a barrel to -$38 in a matter of hours, as rising stockpiles of crude threatened to overwhelm storage facilities and forced oil producers to pay buyers to take the barrels they could not store.
It took additional interventions by the Organisation of Petroleum Exporting Countries (OPEC) and the gradual reopening of the global economy for the price of crude oil to rebound slowly as oil demand edges up.
The only positive for Nigeria during the pandemic was that major investment decisions were made, especially with the signing of the Engineering, Procurement and Construction (EPC) contract of the Nigerian Liquefied Natural Gas (NLNG) Train 7 project, among others.
Economy
BNB Price Reflects Changing Dynamics in the Digital Asset Market
Economy
NASD Unlisted Security Index Crosses 4,000-point Benchmark Again
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange achieved a milestone on Friday, April 24, 2026, after five securities on the platform helped with a 1.85 per cent growth.
Data showed that the NASD Unlisted Security Index (NSI) again crossed the 4,000-point benchmark yesterday.
The index chalked up 73.64 points during the trading day to close at 4,052.59 points compared with the preceding session’s 3,978.95 points, while the market capitalisation added N5.38 billion to finish at N2.424 trillion versus Thursday’s closing value of N2.380 trillion.
The price gainers were led by Okitipupa Plc, which grew by N25.00 to sell at N305.00 per share compared with the previous price of N280.00 per share. Central Securities Clearing System (CSCS) Plc gained N6.92 to close at N76.26 per unit versus N69.34 per unit, Afriland Properties Plc appreciated by N1.00 to N17.00 per share from N18.00 per share, FrieslandCampina Wamco Nigeria Plc improved by 55 Kobo to N99.55 per unit from N99.00 per unit, and Food Concepts Plc increased by 5 Kobo to N2.70 per share from N2.65 per share.
However, there was a price loser, MRS Oil, which dipped by N21.75 to N195.75 per unit from N217.50 per unit.
During the final session of the week, the value of securities jumped 75.2 per cent to N41.3 million from N23.6 million units, and the number of deals expanded by 62.9 per cent to 44 deals from 27 deals, while the volume of securities declined marginally by 0.9 per cent to 447,403 units from 451,522 units.
At the close of trades, Great Nigeria Insurance (GNI) Plc was the most traded stock by volume (year-to-date) with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
GNI was also the most active stock by value (year-to-date) with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 59.6 million units transacted for N4.0 billion, and Okitipupa Plc with 27.8 million units exchanged for N1.9 billion.
Economy
Naira Slips to N1,358/$1 as FX Reserves, Policy Uncertainty Concerns
By Adedapo Adesanya
It was not a good day for the Nigerian Naira in the currency market on Friday, April 24, as its value depreciated against the major foreign currencies at the close of transactions.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX), it lost N4.53 or 0.33 per cent against the United States Dollar yesterday to trade at N1,358.44/$1, in contrast to the N1,353.91/$1 it was exchanged on Thursday.
Equally, the domestic currency slipped against the Pound Sterling in the official market during the session by N8.14 to close at N1,834.02/£1, compared with the previous rate of N1,825.88/£1 and dropped N8.01 against the Euro to sell at N1,590.73/€1 versus N1,582.72/€1.
Also, the Naira depreciated against the US Dollar at the GTBank FX desk on Friday by N4 to quote at N1,370/$1 compared with the previous session’s N1,366/$1, and at the parallel market, it depleted by N5 to settle at N1,380/$1 versus the preceding day’s N1,375/$1.
Data published by the Central Bank of Nigeria (CBN) indicated that NFEM interbank turnover surged to N43.562 million across 68 deals, up from N28.117 million the previous day.
Despite the CBN’s reassurance that the recent drop in external reserves is not worrisome, the market remains unsettled by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market as gross reserves continue to decline to $48.4 billion.
The outlook for the Dollar appears supported by broader macro risks, including elevated oil prices tied to the tanker traffic disruptions in the Strait of Hormuz and a continued US-Iran standoff over ceasefire negotiations.
A look at the digital currency market showed that investors are sitting on the edge as the US Dollar rebounded amid geopolitical and inflation risks despite continued inflows into US spot bitcoin Exchange Traded Funds (ETFs).
Solana (SOL) rose by 1.2 per cent to sell $86.45, Cardano (ADA) appreciated by 1.1 per cent to $0.2517, Dogecoin (DOGE) grew by 0.9 per cent to $0.0989, Ripple (XRP) improved by 0.3 per cent to $1.43, Ethereum (ETH) soared by 0.2 per cent to $2,316.83, and Binance Coin (BNB) chalked up 0.1 per cent to sell for $637.44.
However, TRON (TRX) depreciated by 1.3 per cent to $0.3235, and Bitcoin (BTC) lost 0.2 per cent to close at $77,562.27, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
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