Economy
Market Loses 0.14% as Investors Approach Nigerian Stocks With Caution
By Dipo Olowookere
Nigerian stocks finally succumbed to the bears on Thursday after they closed the trading session 0.14 per cent lower due to profit-taking activities by investors.
The Nigerian Exchange (NGX) Limited crumbled during the session as traders were worried about the warning signs about the country’s economy.
Even the defence put up by the Central Bank of Nigeria (CBN) about the nation’s external reserves in reaction to JP Morgan’s revelation did nothing to convince them that all is well.
Happenings at the foreign exchange (FX) market were enough that the apex bank may not have the capacity to defend the Naira because of the weak reserves. The local currency was already trading above N900 to a Dollar in the parallel market and the peer-to-peer (P2P) segments.
It was observed that equities put up for sale yesterday struggled to get buyers, leading to a shortage in the All-Share Index (ASI) by 90.99 points to 65,401.82 points from 65,492.81 points and a decline in the market capitalisation by N50 billion to N35.795 trillion from N35.845 trillion.
Business Post reports that the consumer goods index appreciated by 0.96 per cent in the midst of the sell-offs, though it could not salvage the situation.
This was because the banking space lost 1.81 per cent, the insurance sector declined by 0.24 per cent, the energy counter fell by 0.09 per cent, and the industrial goods space shed 0.08 per cent.
A look at the market breadth index reflected the true mood of Customs Street as it was bearish, with 39 price losers and 19 price gainers, representing a weak investor sentiment.
FTN Cocoa suffered the heaviest loss after it went down by 9.95 per cent to N1.81, Red Star Express depreciated by 9.93 per cent to N2.63, Learn Africa shed 9.88 per cent to N3.65, Northern Nigerian Flour Mill shrank by 8.30 per cent to N11.05, and Veritas Kapital depleted by 7.69 per cent to 24 Kobo.
Conversely, the quintet of Dangote Sugar, NASCON, CWG, Transcorp, and Omatek gained 10.00 per cent each to sell for N44.00, N40.70, N4.95, N5.28, and 33 Kobo, respectively.
Again, Transcorp topped the activity chart after it traded 144.5 million shares worth N724.3 million, Sterling Bank transacted 63.3 million equities valued at N213.6 million, Access Holdings exchanged 54.7 million stocks for N880.0 million, GTCO traded 42.8 million shares valued at N1.5 billion, and Fidelity Bank sold 32.2 million stocks for N225.2 million.
At the close of transactions, traders bought and sold 583.1 million equities worth N12.9 billion in 6,968 deals compared with the 348.3 million equities worth N4.1 billion traded in 6,237 deals on Wednesday, implying an increase in the trading volume, value, and the number of deals by 67.41 per cent, 214.6 per cent, and 11.72 per cent apiece.
By Adedapo Adesanya
Oil prices climbed about 2 per cent to a one-month high on Tuesday after the US reportedly reimposed a naval blockade on Iran, which will reduce oil flows from the region through the Strait of Hormuz.
Brent futures rose by $1.43 or 1.7 per cent to settle at $84.73 per barrel, while the US West Texas Intermediate (WTI) crude increased by $1.20 or 1.5 per cent to $79.34 a barrel.
Brent closed at its highest since June 12, and WTI at its highest since June 15. The closing price increase kept Brent in technically overbought territory for a second day in a row for the first time since March.
Before the Iran war, about 20 per cent of global oil supplies flowed through the strait.
US President Donald Trump stepped back from a proposal to charge a 20 per cent fee to guard the Strait of Hormuz as part of the conflict with Iran, saying he would instead seek investment deals with Gulf states.
US forces had carried out waves of attacks for the third night after Iran said it had closed the strait. President Trump on Monday reinstated a blockade of Iranian shipping and proposed the fee, but hours before the fee was to take effect, the American President said the strait was open to all shipping traffic except that of Iran.
The renewed attacks have fed doubts that a memorandum of understanding signed last month will lead to a permanent halt in the war that has disrupted global energy supplies and stoked inflation fears.
Data showed that US consumer inflation slowed more than expected in June as energy prices retreated, but financial markets still expect an interest rate hike from the Federal Reserve.
The Federal Reserve Chairman Kevin Warsh on Tuesday vowed to “do my job” if challenged by President Trump, who has said he wants the US central bank to cut interest rates and boost economic growth.
The American Petroleum Institute (API) estimated that crude oil inventories in the US fell by 564,000 barrels in the week ending July 10. In the week prior, US crude oil inventories fell by 399,000 barrels.
Although commercial crude oil inventories excluding the SPR have been falling rapidly for three months now, shedding just over 60 million barrels over the last twelve weeks, US crude inventories are only down 9.2 million barrels so far this year. The US Energy Information Administration (EIA) will release its report later on Wednesday.
By Adedapo Adesanya
The 700,000 barrels per day Dangote Petroleum Refinery has begun pricing fuel products for the local market in US Dollars amid crude supply challenges.
The company cited difficulties securing sufficient crude under the government’s Naira-for-crude programme and rising global oil prices as reasons for the development.
The Naira-for-crude programme, launched in October 2024, allowed domestic refiners to purchase crude in the local currency and reduced pressure on the foreign exchange market.
Mr Edwin Devakumar, the vice president of the Dangote Group, said the refinery had been absorbing a currency mismatch by selling products in Naira while sourcing crude in Dollars, but limited crude supply under the Naira-for-crude programme had undermined the arrangement’s viability.
Dangote has now set the ex-depot price of petrol at $0.779 per litre, diesel at $1.087 per litre and aviation fuel at $0.942 per litre, according to a pricing template circulated to marketers.
Although the Nigerian National Petroleum Company (NNPC) Limited increased Dangote’s allocation to seven cargoes in May from about five previously, the refiner has said it requires 13 to 15 cargoes a month and has been forced to import the remainder at international prices.
The decision could boost demand for Dollars among fuel marketers and make domestic fuel prices more sensitive to exchange-rate fluctuations.
Dangote Refinery is steadily ramping up operations toward full capacity after a gradual start since late 2023. In April alone, it received 21 separate crude cargoes, with all supplies coming from West Africa, mainly Nigerian crude grades, with one cargo from Cameroon; however, it boosted international cargoes in recent months.
The refinery has been broadening the range of crude grades it processes as part of its ambition to operate as a fully merchant refinery. In 2025, about 70 per cent of the refinery’s crude imports came from Nigeria, while 24 per cent originated from the United States.
Dangote plans to double the refinery’s processing capacity to 1.4 million barrels per day by the end of 2028, a level that would enable it to process about 80 per cent of Nigeria’s recent crude oil production in a single day.
By Adedapo Adesanya
The Nigeria Customs Service (NCS) is seeking a reduction in import duty exemptions, which rose to N34 trillion, limiting its ability to increase its revenue generation threshold.
The Comptroller-General of the Customs Service, Mr Adewale Adeniyi, disclosed that the value of import duty exemption certificate approvals increased to that level in 2025, describing the policy as one of the major factors restricting its revenue generation.
At an investigative session of the Senate Committee on Finance with revenue-generating agencies in Abuja on Monday, Mr Adeniyi explained that government fiscal policies have continued to impact the revenue-generating capacity of the Customs Service, both positively and negatively.
“The NCS would have generated significantly higher revenue over the years if not for government-approved import duty waivers and other external factors affecting collections,” he said.
He added that the Import Duty Exemption Certificate scheme, introduced in March 2020, accounted for about N34 trillion in approvals in 2025, with nearly 60 per cent covering duty-free importation of military hardware due to Nigeria’s prevailing security challenges.
Other government-backed duty waivers, he noted, covered the importation of Compressed Natural Gas (CNG), electric and hybrid vehicles, healthcare equipment and medical supplies, industrial machinery and manufacturing inputs, as well as food import intervention programmes.
While acknowledging the impact of the waivers on Customs revenue, Mr Adeniyi argued that fiscal policy should not be assessed solely on the basis of revenue generation but also on its broader economic and social objectives.
He, however, urged the federal government to establish stronger monitoring mechanisms to ensure beneficiaries of duty waivers deliver the intended economic outcomes, including lower consumer prices, increased local production and improved healthcare access.
The committee also expressed displeasure over the absence of several heads of government agencies invited to the hearing, including the Nigerian Civil Aviation Authority (NCAA), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Industrial Training Fund (ITF), and the Federal Medical Centre (FMC), Jabi.
The Chairman of the Senate Committee on Finance, Mr Sani Musa, warned that the affected chief executives must appear at the committee’s next sitting or face severe sanctions under the Senate’s rules.
