Economy

Nigeria: Broad Money Grows 6.51% in December 2016

Published

8 years ago

23/02/2017

By Modupe Gbadeyanka

Central Bank of Nigeria (CBN) Depository Corporations Survey has shown that broad money supply (M2) expanded month-on-month by 6.51 percent in December 2016 to N23.84 trillion, a report by Cowry Asset has revealed.

It was gathered that the increase in M2 followeda0.70 percentincreaseinNet Domestic AssetstoN14.38trillion, accompanied by a 16.98 percent decrease in Net Foreign Assets to N9.35trillion.

The increase in net foreign assets partly reflected recovery in international crude oil prices since October last year juxtaposed with improved crude oil production.

Narrow money supply, M1, increased by 10.46 percent to N11.52 trillion as demand deposits grew by 9.69 percent to N9.70 billion and currency outside the banks increased by 14.70 percent to N1.82 trillion.

Also, net domestic credit upped by 0.45 percent to N26.97 trillion as credit to the private sector declined by 2.91 percent to N22.37 trillion while credit to the government increased by 20.85 percent to N4.60 trillion; which was indicative of crowding out of the private sector in a high interest rate environment.

In the real sector, Nigeria’s economy recorded sustained increase in annual inflation rate, to 18.72 percent in January 2017 (from 18.55 percent in December 2016).

However, monthly increase in composite consumer price index slowed to 1.01 percent in the review month (from 1.06 percent in December).

Increase in general price level was partly due to increased pressure from higher foreign exchange rates and their subsequent impact on consumer goods and services –Naira/USD exchange rates increased month-on-month by 1.78 percent and 1.63 percent to average N490/USD and N495.38/USD at the Bureau De Change and Parallel market segments respectively.

Similarly, the prices of refined petroleum products increased on a monthly basis–Premium Motor Spirit increased by 1.36 percent to average N148.7/litre; Automotive Gas Oil increased by 22.59 percent to average N240.52/litre; Household Kerosene spiked by 87.12 percent to average N433.84/litre; while average price for Liquefied Petroleum Gas increased by 22.91 percent to N5,500 per 12.50kg refill.

Food inflation rate rose to 17.82 percent in January (faster than 17.39 percent in December), driven by increases in prices of bread and cereals, meat oil and fats, and fish.

However, core inflation rate fell to 17.90 percent in January (from 18.10 percent in December).

The price index of housing water, electricity, gas and other fuel grew by 27.17 percent in January (slower than 27.25 percent in December); imported food index rose by 20.97 percent in January (slower than 21.08 percent in December); while transportation index increased at a faster pace by 17.22 percent in January (from 17.30 percent in December).

The clothing and footwear price index also increased at a faster pace by 17.85 percent in January (from 17.81 percent in December).

On the foreign scene, inflation rate in the United States increased year-on-year to 2.5 percent in January 2017 (higher than 2.1 percent recorded in December; above market expectations of 2.4 percent and higher than 2.0 percent target set by the Federal Open Markets Committee), mainly driven by gasoline prices.

In the same vein, inflation rate in the United Kingdom increased to 1.8 percent in January 2017 (higher than 1.6 percent in December, but below mark expectations of 1.9 percent), mainly driven by rising cost of fuel.

Consumer prices in China also increased year-on-year by 2.5 percent in January 2017 (higher than 2.1 percent recorded in December), driven by a faster increase in cost of food and non-food items.

The annual inflation rate in Ghana slowed to 13.3 percent in January (from 15.4 percent in the previous month), driven by slower increase in prices of food and non-food items (7 percent from 9.7 percent and 16.6 percent from 18.2 percent respectively).

View full report here: Cowry Asset

Economy

Again, OPEC Cuts 2024, 2025 Oil Demand Forecasts

Published

13 hours ago

11/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The Organisation of the Petroleum Exporting Countries (OPEC) has once again trimmed its 2024 and 2025 oil demand growth forecasts.

The bloc made this in its latest monthly oil market report for December 2024.

The 2024 world oil demand growth forecast is now put at 1.61 million barrels per day from the previous 1.82 million barrels per day.

For 2025, OPEC says the world oil demand growth forecast is now at 1.45 million barrels per day, which is 900,000 barrels per day lower than the 1.54 million barrels per day earlier quoted.

On the changes, the group said that the downgrade for this year owes to more bearish data received in the third quarter of 2024 while the projections for next year relate to the potential impact that will arise from US tariffs.

The oil cartel had kept the 2024 outlook unchanged until August, a view it had first taken in July 2023.

OPEC and its wider group of allies known as OPEC+ earlier this month delayed its plan to start raising output until April 2025 against a backdrop of falling prices.

Eight OPEC+ member countries – Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman – decided to extend additional crude oil production cuts adopted in April 2023 and November 2023, due to weak demand and booming production outside the group.

In April 2023, these OPEC+ countries decided to reduce their oil production by over 1.65 million barrels per day as of May 2023 until the end of 2023. These production cuts were later extended to the end of 2024 and will now be extended until the end of December 2026.

In addition, in November 2023, these producers had agreed to voluntary output cuts totalling about 2.2 million barrels per day for the first quarter of 2024, in order to support prices and stabilise the market.

These additional production cuts were extended to the end of 2024 and will now be extended to the end of March 2025; they will then be gradually phased out on a monthly basis until the end of September 2026.

Members have made a series of deep output cuts since late 2022.

They are currently cutting output by a total of 5.86 million barrels per day, or about 5.7 per cent of global demand. Russia also announced plans to reduce its production by an extra 471,000 barrels per day in June 2024.

Economy

Aradel Holdings Acquires Equity Stake in Chappal Energies

Published

18 hours ago

11/12/2024

Aduragbemi Omiyale

By Aduragbemi Omiyale

A minority equity stake in Chappal Energies Mauritius Limited has been acquired by a Nigerian energy firm, Aradel Holdings Plc.

This deal came a few days after Chappal Energies purchased a 53.85 per cent equity stake in Equinor Nigeria Energy Company Limited (ENEC).

Chappal Energies went into the deal with Equinor to take part in the oil and gas lease OML 128, including the unitised 20.21 per cent stake in the Agbami oil field, operated by Chevron.

Since production started in 2008, the Agbami field has produced more than one billion barrels of oil, creating value for Nigerian society and various stakeholders.

As part of the deal, Chappal will assume the operatorship of OML 129, which includes several significant prospects and undeveloped discoveries (Nnwa, Bilah and Sehki).

The Nnwa discovery is part of the giant Nnwa-Doro field, a major gas resource with significant potential to deliver value for Nigeria.

In a separate transaction, on July 17, 2024, Chappal and Total Energies sealed an SPA for the acquisition by Chappal of 10 per cent of the SPDC JV.

The relevant parties to this transaction are working towards closing out this transaction and Ministerial Approval and NNPC consent to accede to the Joint Operating Agreement have been obtained.

“This acquisition is in line with diversifying our asset base, deepening our gas competencies and gaining access to offshore basins using low-risk approaches.

“We recognise the strategic role of gas in Nigeria’s energy future and are happy to expand our equity holding in this critical resource.

“We are committed to the cause of developing the significant value inherent in the assets, which will be extremely beneficial to the country.

“Aradel hopes to bring its proven execution competencies to bear in supporting Chappal’s development of these opportunities,” the chief executive of Aradel Holdings, Mr Adegbite Falade, stated.

Economy

Afriland Properties Lifts NASD OTC Securities Exchange by 0.04%

Published

21 hours ago

11/12/2024

Adedapo Adesanya

By Adedapo Adesanya

Afriland Properties Plc helped the NASD Over-the-Counter (OTC) Securities Exchange record a 0.04 per cent gain on Tuesday, December 10 as the share price of the property investment rose by 34 Kobo to N16.94 per unit from the preceding day’s N16.60 per unit.

As a result of this, the market capitalisation of the bourse went up by N380 million to remain relatively unchanged at N1.056 trillion like the previous trading day.

But the NASD Unlisted Security Index (NSI) closed higher at 3,014.36 points after it recorded an addition of 1.09 points to Monday’s closing value of 3,013.27 points.

The NASD OTC securities exchange recorded a price loser and it was Geo-Fluids Plc, which went down by 2 Kobo to close at N3.93 per share, in contrast to the preceding day’s N3.95 per share.

During the trading session, the volume of securities bought and sold by investors increased by 95.8 per cent to 2.4 million units from the 1.2 million securities traded in the preceding session.

However, the value of shares traded yesterday slumped by 3.7 per cent to N4.9 million from the N5.07 million recorded a day earlier, as the number of deals surged by 27.3 per cent to 14 deals from 11 deals.

Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 million.

Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units sold for N5.3 billion.