By Adedapo Adesanya

The Naira recovered about 0.26 per cent or N3.99 against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, January 23 after coming under pressure in recent times.

During the session, the exchange rate of the local currency to its American counterpart closed at N1,548.59/$1 in the official market compared with the previous day’s N1,552.58/$1.

Also, against the Pound Sterling, the domestic currency gained N3.32 yesterday to trade at N1,912.21/£1 compared with Wednesday’s value of N1,915.53/£1 and on the Euro, it improved by N3.82 to sell for N1,617.72/€1 versus N1,613.89/€1.

The forex market may be reacting positively to news that the Central Bank of Nigeria (CBN) would launch a FX Code, which will serve as a guideline to the banking industry to promote ethical conduct of Authorised Dealers in the Nigerian FX market, next week.

The code will further reduce speculative activities, eliminate market distortions, and give the CBN improved oversight capabilities to effectively regulate the market.

The bank noted that authorised dealers would subsequently conduct all FX transactions in the interbank FX market on the EFEMS approved by the apex bank where transactions will be reflected immediately.

However, in the black market segment, the Nigerian Naira lost N5 against the greenback during the session to quote at N1,665/$1, in contrast to midweek’s rate of N1,660/$1.

As for the cryptocurrency market, it was lively yesterday as attention is increasingly centered on potential policy developments under the government of President Donald Trump of the US.

On Thursday, President Trump signed an executive order to ban the digital dollar and promote crypto and AI innovation in the country.

Meanwhile, the US data released recently showed the “all tenant rent” index, which leads the shelter inflation in the Consumer Price Index (CPI), rose at a slower pace last quarter. That has raised hopes that the US Federal Reserve will walk back on its hawkish December rate forecasts.

These helped Ethereum (ETH) gain 5.4 per cent on Thursday to sell at $3,394.79, Solana (SOL) appreciated by 4.4 per cent to $260.86, Cardano (ADA) jumped by 2.9 per cent to $1.00, and Litecoin (LTC) expanded by 2.6 per cent to $116.78.

Further, Bitcoin (BTC) rose by 2.1 per cent to $1o4,978.31, Ripple (XRP) leapt by 0.7 per cent to $3.16, Dogecoin (DOGE) increased by 0.6 per cent to $0.3572, and Binance Coin (BNB) soared by 1.6 per cent to $710.31, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.

By Adedapo Adesanya

The global crude oil market waned on Thursday after the US President, Mr Donald Trump, urged the Organisation of the Petroleum Exporting Countries  (OPEC) to bring down the cost of the commodity during his address at the World Economic Forum (WEF).

Brent crude futures lost 71 cents or 0.9 per cent after the speech to close at $78.29 a barrel and the US West Texas Intermediate crude (WTI) crude futures contracted by 82 cents or 1.09 per cent to $74.62 per barrel.

At WEF in Davos, Switzerland, President Trump announced he would ask Saudi Arabia and OPEC to bring down the cost of oil.

Since he took office, the uncertainty over how Mr Trump’s proposed tariffs and energy policies would affect global economic growth and energy demand have weighed on prices.

He threatened to add new tariffs to his sanctions threat against Russia if the country does not make a deal to end its war with Ukraine.

He also vowed to hit the European Union with tariffs and impose 25 per cent tariffs against Canada and Mexico.

On China, Mr Trump said his administration was discussing a 10 per cent punitive duty because fentanyl is being sent from there to the US.

On Monday, he declared a national energy emergency intended to provide him with the authority to reduce environmental restrictions on energy infrastructure and projects; and ease permitting for new transmission and pipeline infrastructure.

Market analysts say there will be more potential for a downward choppy movement in the oil market in the near term due to the Trump administration’s lack of clarity on trade tariffs policy and the impending higher oil supplies from the US.

Meanwhile, the US Energy Information Administration (EIA) reported an inventory dip of 1 million barrels for the week to January 17. In fuels, the EIA estimated mixed changes.

The change in crude inventories compared with a draw of 2 million barrels for the previous week, which also saw another round of sizable builds in fuels.

This contradicts forecasts by the American Petroleum Institute (API) which showed that on the US oil inventory front, crude stocks rose by 958,000 barrels in the week ending January 17 and added that gasoline (petrol) inventories rose by 3.23 million barrels and distillate stocks climbed by 1.88 million barrels, they said.

By Adedapo Adesanya

Nigerian energy company, Oando Plc, has won the bid for the operatorship of oil block KON 13 in Angola.

The company, which recently acquired Eni of Italy’s oil assets in Nigeria, disclosed on Wednesday that the award of the oil block located in Angola’s onshore Kwanza Basin followed a competitive bidding process by the country’s oil and gas sector regulator.

Oando disclosed that the asset, in which it owns 45 per cent participating interest, has an estimated prospective resources of 770 to 1,100 million barrels of oil. Oando is handling its operations relating to the asset through its upstream subsidiary, Oando Energy Resources (OER).

“Oando Plc (the company), Africa’s leading indigenous energy solutions provider listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange is pleased to announce that its upstream subsidiary, Oando Energy Resources (OER), has been awarded operatorship of Block KON 13 in Angola’s Onshore Kwanza Basin, following a competitive bidding process organised by the Angolan National Agency for Petroleum, Gas, and Biofuels (ANPG).

“Block KON 13 is strategically located in the prolific Kwanza Onshore Basin which represents significant exploration potential in both pre-salt and post-salt plays, with estimated prospective resources of 770 to 1,100 million barrels of oil.

“The block has two exploration wells previously drilled to a target depth of 3,000m, with oil and gas observed across various depths. With a 45 per cent participating interest, OER will lead the development of the block as an operator, alongside Effimax (30 per cent) and Sonangol (15 per cent) as co-venturers,” it stated.

Commenting on the award, the chief executive of Oando Plc, Mr Wale Tinubu, expressed confidence in the capacity of the company, in collaboration with its co-venturers, to unlock the full potential of the asset for the country.

“We look forward to collaborating with our co-venturers and other key stakeholders to harness this opportunity and unlock its full potential for Angola and Africa as a whole,” Mr Tinubu said.

This milestone, the company said, marks its strategic entry into the Angolan oil and gas market and represents a significant step in its long-term vision to grow its upstream operations across Africa.

According to Oando Plc, it also solidifies the company’s position as a prominent player in the continent’s energy landscape, evolving from a local indigenous operator to a regional powerhouse.

Following the company’s recent successful acquisition of NAOC Ltd in Nigeria, the addition of Block KON 13, the energy firm stressed, further bolsters the company’s upstream portfolio and reflects its commitment to driving regional growth and energy security.