By Adedapo Adesanya

Total inflows into the Nigerian foreign exchange (FX) market fell by 10.5 per cent month-on-month to $3.4 billion in August 2025, data released recently by FMDQ Exchange shows.

The forex inflows for the period under review was lower than the $3.8 billion recorded in July 2025, when inflows increased by 24 per cent against the preceding month (June 2025).

The decline in August was primarily driven by reduced foreign portfolio inflows (FPIs) to $1.1 billion from $1.7 billion in the previous month.

The moderation in FX supply from offshore investors highlights their fragility, as persistent global uncertainties heightened risk aversion among the offshore community.

Despite the decline last month, FPIs remained the dominant source of liquidity in the FX market, accounting for 86 per cent of FX supply from foreign sources and 32 per cent of total FX inflows.

Within the FPIs category, capital inflows into fixed-income instruments were the major source at $951 million, representing about 87 per cent of total FPIs inflows. Meanwhile, equity-related inflows accounted for the remaining $139 million.

On the other hand, inflows from foreign direct investments (FDIs) remained subdued, plunging to $22 million from $49 million.

With respect to domestic sources, inflows from non-bank corporates, which accounted for 25 per cent of total FX supply, fell by 28 per cent month-on-month to $826 million compared with $1.2 billion in July.

Notably, the CBN ramped up sales to support liquidity in the FX market amid declining supply from major sources. In August, the Bank sold $574 million, up from $326 million in the previous month.

Similarly, FX inflows from exporters gained traction in August, increasing to $654 milliofrom $583m in July.

While exporter contributions remain relatively modest compared to foreign portfolio inflows, they represent a more stable and less volatile source of FX.

Market analysts expect that increased FPIs will help bolster the market in the last quarter of the year, with the trend already established so far in September.

By Adedapo Adesanya

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that rig counts have risen from just 8 in 2021 to 43 as of September 2025.

This development signals renewed investor confidence in the country’s upstream sector and a rebound in its oil and gas exploration and production activities.

This was disclosed by the chief executive of NUPRC, Mr Gbenga Komolafe, at the Africa Oil Week in Accra, Ghana, recently, attributing the surge to regulatory clarity, fiscal reforms, and decisive policies.

“In nearly four years, the Commission has rolled out 24 transformative regulations, 19 of which are now gazetted to operationalize key provisions of the Petroleum Industry Act,” Mr Komolafe stated.

“These reforms have dismantled barriers, unlocked opportunities, and created a more transparent, competitive operating environment,” Mr Komolafe stated

The NUPRC boss explained that the rise in rig activity underscores the effectiveness of Nigeria’s Regulatory Action Plan (RAP) which was designed to fast-track licensing, remove bottlenecks, and attract fresh capital into the upstream oil and gas sector.

He stressed that energy security remains at the heart of Nigeria’s strategy:

“Energy security is the cornerstone of economic growth, national resilience, and shared prosperity in Africa. Nigeria’s upstream revival demonstrates that reforms, when implemented with discipline, can deliver measurable results,” he stressed.

Highlighting the broader transformation, Mr Komolafe pointed to the approval of five major acquisition deals worth over $5 billion, alongside high-profile Final Investment Decisions (FIDs), such as the $5 billion Bonga North project and the $500 million Ubeta Gas Project.

“These FIDs, along with other expected projects like HI NAG Development, Ima Gas, Owowo Deep Offshore, and Preowei Fields, signal renewed long-term commitments from operators and affirm Nigeria’s competitiveness,” he said.

Mr Komolafe further noted that bid rounds and concession awards, including the 57 Petroleum Prospecting Licenses awarded in 2022, the 2022 Mini-Bid Round, and the 2024 Licensing Round, were executed with “unprecedented transparency,” attracting exceptional investor participation.

According to him, Nigeria has deliberately optimized signature bonus requirements and widened accessibility to new entrants, resulting in 27 out of 31 blocks offered in 2024 being successfully awarded.

“With the Petroleum Industry Act as our foundation, reinforced by bold Presidential Executive Orders and transformative regulatory initiatives, we are not just opening our doors to investment; we are building a world-class upstream oil and gas environment that rewards ambition, innovation, and responsibility,” Mr Komolafe declared.

He concluded that the combination of rising rig counts, record Field Development Plan approvals, and renewed investor confidence affirms that Nigeria’s upstream sector is “standing at the dawn of a new era defined by clarity, competitiveness, and confidence.”

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange extended its loss by 0.76 per cent on Wednesday, September 17, with the market capitalisation dipping by N16.70 billion to N2.114 trillion from the preceding day’s N2.130 trillion, and the NASD Unlisted Security Index (NSI) depreciating by 27.02 points to 3,534.22 points from Tuesday’s 3,561.24 points.

Yesterday, 11 Plc further declined by N20.99 to close at N209.01 per unit versus the preceding day’s N230.00 per unit, FrieslandCampina Wamco Nigeria Plc depreciated by N4.00 to close at N56.00 per share versus N6.00 per share, and Central Securities Clearing System (CSCS) Plc lost 30 Kobo to end at N41.00 per unit, in contrast to the N41.30 per unit it was priced a day earlier.

However, the price of Industrial and General Insurance (IGI) Plc went down by 5 Kobo during the session to end at 59 Kobo per share compared with the preceding day’s 54 Kobo per share.

At midweek, the volume of securities traded slid by 80.7 per cent to 450,722 units from the previous 2.3 million units, but the value of securities jumped by 293.8 per cent to N63.7 million from N16.2 million, and the number of deals increased by 9.1 per cent to 24 deals from 21 deals.

When trading activities ended for the session, Okitipupa Plc was the most traded stock by value on a year-to-date basis with 158.7 million units transacted for N6.0 billion, followed by Air Liquide Plc with 507.3 million units worth N4.2 billion, and FrieslandCampina Wamco Nigeria Plc with 45.0 million units valued at N2.0 billion.

IGI Plc was still the most traded stock by volume on a year-to-date basis with 1.2 billion units worth N418.4 million, trailed by Impresit Bakolori Plc with 536.9 million units for N524.8 million, and Air Liquide Plc with 507.3 million units valued at N4.2 billion.