Economy
IEA Forecast Improved Oil Demand of 92.1mbpd in 2020
By Adedapo Adesanya
- Global oil supply falls to nine-year low in June.
The International Energy Agency (IEA) has increased its 2020 oil demand forecast on Friday to 92.1 million barrels per day, up 400,000 barrels per day from its outlook in June, citing a lesser decline than expected in the second quarter of the year.
In its monthly oil report published on Friday, it noted that the appetite for oil still remain weakened by the novel coronavirus (COVID-19), which is suppressing overall oil demand.
It said global oil demand is forecast to average 92.1 million barrels per day in 2020 and 97.4 million barrels per day in 2021.
According to the Paris-based organisation, global oil demand will decline by 7.9 million barrels per day in 2020 but recover by 5.3 million barrels per day in 2021. However, it added, “the recent increase in COVID-19 cases and the introduction of partial lockdowns introduces more uncertainty to the forecast.”
“While the oil market has undoubtedly made progress, the large, and in some countries, accelerating the number of COVID-19 cases is a disturbing reminder that the pandemic is not under control and the risk to our market outlook is almost certainly to the downside,” the IEA said.
On the supply side of things, the agency noted that global supply had declined to its lowest level since 2011 due to massive production cuts made by the Organisation of the Petroleum Exporting Countries and its allies known as OPEC+.
It noted that oil supply globally plunged to an average of 86.9 million barrels per day in June, down 2.4 million barrels per day from May.
In a breakdown, it said all participating members in the OPEC cuts supplied 27.2 million barrels per day in June, down by 1.9 million barrels per day from the previous month’s level of 29.1 million barrels in May.
Also, non-OPEC oil supply decreased to 59.7 million barrels per day in June, a fall of 0.5 million barrels daily from May’s level of 60.1 million barrels per day.
This brought down the world’s total oil supply to the lowest level in nine years, dropping by 2.39 million barrels per day from 89.3 million barrels per day in May to 86.9 million barrels per day last month.
“During June, global oil output tumbled to a nine-year low after Saudi Arabia cut an extra 1 million barrels per day below its OPEC+ target and output in both Iraq and the US fell by around 0.5 million barrels per day.
“Record OPEC+ cuts drove most of the decline in June. The group cut crude output by nearly 2 million bpd more than in May, lifting its overall cut above 10 million bpd and boosting compliance to 108% from 88% a month earlier,” the IEA said.
The easing of lockdown measures in many countries caused a strong rebound to fuel deliveries in May, June and likely also July, the IEA added.
By Adedapo Adesanya
The Nigerian government is planning to offer tax incentives to firms investing in key sectors such as agriculture and energy to boost projected growth.
This is part of a new scheme known as the Economic Development Incentive (EDI), which will address long-standing inefficiencies in the current Pioneer Status Incentive (PSI).
The proposed investment-driven incentive framework is designed to stimulate real economic activity by tying tax relief directly to verifiable investments and part of the country’s ongoing tax reform efforts.
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, disclosed this in a keynote address at BusinessDay’s Policy Intervention Series held on Tuesday, April 22 in Lagos.
He said a review of the PSI revealed structural flaws that have undermined its effectiveness.
“Once granted a pioneer status, companies may import goods classified as pioneer products tax-free, effectively allowing them to operate without tax obligations—even with minimal value addition to the economy,” he said.
The incentives will mainly be in the form of a multiyear tax credit that companies can use to reduce what they owe the government, Mr Oyedele further explained.
He said investments in sectors including agriculture, energy and manufacturing will enjoy the tax credit based on a prescribed minimum amount of investment for a period ranging from 10 to 20 years.
Mr Oyedele also reiterated that the country has initiated reforms to boost tax revenue as a share of gross domestic product to 18 per cent by 2027 from 13.6 per cent in 2024, adding these proposals seek to drive growth in priority sectors of the economy.
Also, investors in utility projects like power, waterways and ports will have to invest at least N200 billion to qualify for the tax credit.
He explained that if a company invests N10 billion in Year 1, it earns a N500 million tax credit each year for five years and if an additional N5 billion is invested in Year 2, that new investment begins its own five-year 5 per cent cycle—N250 million annually until Year 6 and if the company continues investing progressively, each round of investment starts a new five-year cycle of tax credits, potentially extending the benefit period up to 10 years.
The tax maven further stated that if a business has a N15 million tax liability in a given year and applies N25 million in tax credits, its liability is wiped out entirely, with the N10 million balance rolled over to subsequent years and that if a company fails to follow through on its investment plan or halts capital deployment, unused credits are forfeited and this accountability mechanism ensures that only consistent and credible investments are rewarded.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange slid by 0.35 per cent on Tuesday, April 22 after the return from the Easter break, with the market capitalisation falling by N6.79 billion to N1.917 trillion from the N1.924 trillion recorded last Thursday, and the NASD Unlisted Security Index (NSI) declining by 11.60 points to 3,274.78 points from the previous session’s 3,286.38 points.
Yesterday, the share price of Central Securities Clearing System (CSCS) Plc went down by 60 Kobo to close at N21.50 per unit versus the preceding session’s N22.10 per unit and Geo-Fluids Plc lost 18 Kobo to end at N1.62 per share, in contrast to last Thursday’s N1.80 per share.
On the flip side, the price of FrieslandCampina Wamco Nigeria Plc appreciated by 16 Kobo to quote at N37.80 per unit versus the previous trading day’s N37.64 per unit.
During the session, there was a 40.5 per cent increase in the volume of securities transacted to 174,634 units from the 124,266 units traded in the previous trading day, but the value of transactions slumped by 43.9 per cent to N2.86 million from N5.1 million, and the number of deals dropped by 48.4 per cent to 16 deals from 31 deals.
At the close of business, Impresit Bakolori Plc remained the most active stock by volume on a year-to-date basis with a turnover of 533.9 million units worth N520.9 million, followed by Okitipupa Plc with the sale of 153.6 million units for N4.9 billion, and Industrial and General Insurance (IGI) Plc with 71.2 million units valued at N24.2 million.
Also, Okitipupa Plc remained the most valued stock on a year-to-date with the sale of 153.6 million valued at N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with a turnover of 14.8 million units worth N572.0 million and Impresit Bakolori Plc with a turnover of 533.9 million units sold for N520.9 million.
By Adedapo Adesanya
It was a bad day for the Naira on Tuesday, April 22 as its value plummeted against the United States Dollar by N3.23 or 0.2 per cent at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
It was the first trading session in the official market after the long Easter Break which started last Friday.
The Nigerian Naira was exchanged with the greenback yesterday at N1,603.16/$1, in contrast to the preceding trading day’s rate of N1,599.93/$1.
However, the local currency closed flat against the Pound Sterling and the Euro in the spot market at N2,120.24/£1 and N1,817.69/€1, respectively.
At the parallel market, the Naira appreciated against the US Dollar during the session by N10 to sell for N1,610/$1 compared with the previous trading session’s N1,620/$1.
In the cryptocurrency market, most of the tokens improved on Tuesday, buoyed by renewed investor optimism and fresh hopes of an ease in US-China trade tensions.
Earlier on Tuesday, remarks from US Treasury Secretary Scott Bessent, who reportedly told investors at a closed-door JPMorgan event that the tariff standoff with China was unsustainable.
Mr Bessent said de-escalation would come “in the very near future,” characterizing current conditions as a “trade embargo.” However, he cautioned that a more comprehensive deal between the two nations could take even years.
Then President Donald Trump, speaking to reporters in the White House later, said that US tariffs on China “will come down substantially” from the current 145 per cent level, allaying concerns of a spiraling trade war.
Ethereum (ETH) jumped by 10.6 per cent to $1,784.93, Dogecoin (DOGE) appreciated by 10.3 per cent to $0.1812, Cardano (ADA) added 9.9 per cent to trade at $0.6971, and Solana (SOL) gained 7.9 per cent to close at $151.25.
Further, Ripple (XRP) grew by 7.5 per cent to $2.25, Bitcoin (BTC) expanded by 6.2 per cent to $93,822.95, Litecoin (LTC) increased by 5.8 per cent to $84.22, and Binance Coin (BNB) went up by 2.3 per cent to $617.20, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) sold flat at $1.00 each.
-
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