Economy
Nigeria’s Revenue Rises as Oil Trades Above $58
By Adedapo Adesanya
The funding of the 2021 budget of Nigeria received a big boost on Wednesday when crude oil, the major source of revenue for the country, traded above $58 per barrel.
The oil benchmark for the year was $40 per barrel but yesterday, the Brent crude, under which Nigeria’s oil grade is priced, appreciated by $1.07 or 1.86 per cent.
This boost was triggered by a drop in the United States inventories as well as the decision of oil allies not to make recommendations about changing their production levels.
As a result, the West Texas Intermediate (WTI) crude futures appreciated by $1.03 or 1.88 per cent to sell at $55.79 per barrel at the midweek trading session.
According to a report from the Energy Information Administration (EIA), crude oil inventory reduced by one million barrels for the last week of January.
A day earlier, the American Petroleum Institute (API) estimated crude oil inventories had fallen by 4.26 million barrels in the reporting period.
The EIA estimate compared with a build of 4.4 million barrels reported for the third week of January and analyst expectations for a modest build of 367,000 barrels.
Oil prices have been on a steady rise recently based on a high compliance rate with production cuts by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) and a weaker dollar, which made commodities cheaper for international buyers. The outlook is also bullish, with the futures price trend suggesting tighter oil supply on global markets.
Forecasts are also getting increasingly optimistic, with Goldman Sachs analysts recently saying they expected oil demand to rebound to 100 million barrels per day as soon as this year.
Also, prices also found support as the Joint Ministerial Monitoring Committee (JMMC) of the OPEC+ group wrapped up their monthly meeting on Wednesday and as expected did not make any recommendation about changing the oil production levels of the alliance.
The JMMC meeting this month was more of a formality rather than disagreements and bargaining like the previous meeting since OPEC+ decided in January how it would proceed with the production cuts for February and March.
This month, the OPEC+ alliance is easing its production cuts by just 75,000 barrels per day, of which 65,000 barrels per day will be given to Russia and another 10,000 barrels per day to Kazakhstan.
In March, Russia and Kazakhstan are set to boost their oil production by another 65,000 barrels per day and 10,000 barrels per day, respectively.
However, all other members of the pact are keeping their production levels from January with OPEC’s top producer, Saudi Arabia cut its production by an additional 1 million barrels per day beyond its quota this month and next.
So, this month’s JMMC meeting only took stock of the oil market situation and the compensation schedules for those producers who haven’t fully complied with the cuts since the deal was enacted in May 2020.
Those producers who still need to compensate for over-production have to submit their schedules by February 15.
The next JMMC meeting will be held on March 3, and this is where discussions are expected to heat up again as the OPEC+ group will have to decide on the production levels for April, and possibly beyond.
Support could also be found as the US President Joe Biden’s coronavirus rescue plan, and two of its key economic provisions, have broad support as Democrats try to push it through Congress.
The White House is reaching for a bipartisan bill as Democrats pulled a Senate majority, voting 50-49, to start a lengthy process for approving Biden’s bill with or without the opposing Republicans support. The goal is a passage by March.
By Adedapo Adesanya
The first trading day of the week in the currency market was bearish for the Naira in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, April 27.
Yesterday, it lost N5.80 or 0.43 per cent against the United States Dollar to trade at N1,364.24/$1, in contrast to the N1,358.44/$1 it was traded last Friday.
In the same vein, the Nigerian currency depreciated against the Pound Sterling in the official market by N13.70 to close at N1,847.72/£1 versus the preceding session’s N1,834.02/£1, and slumped against the Euro by N11.56 to sell at N1,602.29/€1 versus N1,590.73/€1.
Also, the Nigerian Naira tumbled against the greenback during the trading day by N5 to quote at N1,385/$1 compared with the previous rate of N1,380/$1, and at the GTBank FX desk, it traded flat at N1,370/$1.
The poor performance of the domestic currency could be attributed to liquidity shortage at the official currency market on Monday, which came amid surging demand for international payments. At $76.50 million, interbank liquidity printed higher across 79 deals, up from the $43.572 million reported on Friday.
Nigeria’s gross external reserves declined to $48.45 billion amid a month-long decline in inflows, amid uncertainties in the global commodity market. The depletion of foreign reserves could be partly attributed to the Central Bank of Nigeria’s intervention in the FX market.
The market remains perturbed by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market, while boosters, including oil prices, continue to look rocky due to stalled discussions and unclear ceasefire negotiations between the US and Iran.
A look at the cryptocurrency market, Bitcoin (BTC) has been rejected near $79,000 three times in eight sessions, leaving the level as the de facto ceiling of its current trading range even as major cryptocurrencies trade lower over the past day. It lost 0.9 per cent to sell at $77,003.61.
Analysts say that upcoming US Federal Reserve policy decisions and top tech firms’ earnings this week could provide the catalyst to push bitcoin decisively above $80,000.
The market also continued to weigh Iran’s interim deal proposal to reopen the Strait of Hormuz, which failed to advance over the weekend. The White House said US officials were discussing the latest Iranian proposal but maintained “red lines” on any deal to end the eight-week war.
Solana (SOL) dropped 1.8 per cent to $84.25, Ripple (XRP) went down by 1.6 per cent to $1.39, Ethereum (ETH) depreciated by 1.3 per cent to $2,290.00, Binance Coin (BNB) declined by 0.5 per cent to $625.18, and Cardano (ADA) fell by 0.2 per cent to $0.2480.
However, Dogecoin (DOGE) rose by 2.0 per cent to $0.1002, and TRON (TRX) appreciated by 0.2 per cent to $0.3242, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Aduragbemi Omiyale
One of the leading salt makers in Nigeria, NASCON Allied Industries Plc, has set its eyes on some strategies aimed to deliver more value to shareholders.
The chief executive of the company, Mrs Aderemi Saka, said efforts are being made to surpass the performance of last year.
In the 2025 financial year, the organisation recorded a 27 per cent growth in revenue, while post-tax profit grew by over 100 per cent to N33.5 billion, with the earnings per share (EPS) expanding by 115 per cent to N12.41 from N5.77 Kobo in the previous year.
The impressive performance, attributed to a clear strategic vision, disciplined execution and sustained focus on cost-saving initiatives across production, logistics and fleet management, resulted in a 200 per cent increase in dividend payout to shareholders to N6 per share.
Mrs Saka, at the firm’s Annual General Meeting (AGM) in Lagos, said the strategic priorities for the coming year include deeper cost optimisation, expanded market penetration, strengthened energy diversification and sustainability initiatives, as well as accelerated digital transformation and process automation.
Earlier, the chairman of NASCON, Mr Olakunle Alake, informed shareholders that the achievements for last year were due to improved operational efficiency, strict cost management and the dedication of the company’s workforce.
“The operating environment in 2025 was characterised by economic volatility, persistent inflation and structural changes across key sectors. Yet, NASCON remained resilient and strategically focused, delivering outstanding value to shareholders,” Mr Alake said.
He noted that operational sustainability remains a core pillar of the organisation’s strategy, stressing that during the year, NASCON introduced Compressed Natural Gas (CNG) trucks into its logistics fleet to reduce fuel costs and minimise exposure to diesel price volatility.
In addition, the company’s state-of-the-art salt refinery, its largest production facility, now runs entirely on natural gas, significantly boosting efficiency while reinforcing NASCON’s commitment to environmental sustainability.
A director in the organisation, Mrs Tonya Lawani, emphasised that the firm remains firmly committed to the principles that have driven its excellent performance, noting that NASCON approaches the new financial year from a position of strength, with further opportunities for growth and improvement.
Speaking on behalf of shareholders, Mr Faruk Umar expressed strong confidence in the company’s trajectory, citing NASCON’s rising share price, which recently crossed the N100 mark, and projecting further appreciation.
He commended the quality of the Board and management team, noting that strong leadership and recent executive appointments have positioned the entity to deliver even greater value to all stakeholders.
By Adedapo Adesanya
Brent futures gained $2.90 or 2.8 per cent to trade at $108.23 a barrel on Monday as peace talks between the United States and Iran stalled and shipments through the Strait of Hormuz remained limited, keeping global oil supplies tight.
Also, the US West Texas Intermediate crude rose by $1.97 or 2.1 per cent to $96.37 per barrel after Iran reportedly offered to reopen the Strait of Hormuz, but insisted US nuclear talks be postponed, a condition the Americans are unlikely to accept.
Iran presented the proposal through regional mediators to reopen the waterway and move toward ending the war first, while postponing nuclear negotiations. The proposal would separate shipping security from the dispute over uranium enrichment, where negotiations have deadlocked.
The stalled negotiations are leading to fears for the global economy as both nations are no closer to a lasting truce after US President Donald Trump cancelled American participation in talks with Iran.
President Trump discussed a new Iranian proposal on resolving the war with Iran with his top national security aides, with the conflict currently in a stalemate and energy supplies from the Middle East region reduced.
The market is also beginning to price the supply story beyond crude. Higher petrol and heating oil prices are feeding concern that the conflict is moving into transport, manufacturing, and consumer costs.
At least seven ships – mainly dry bulk vessels – have crossed the Strait of Hormuz in the past 24 hours, in line with muted activity in recent days. That represents a fraction of the average 140 daily passages before the Iran war began on February 28, when around 20 per cent of global oil supplies passed through the strait.
In addition, six tankers loaded with Iranian oil have been forced back to Iran by the US blockade in recent days.
Also, Russian President Vladimir Putin praised the Iranian people for battling to stay independent in the face of US and Israeli pressure and said Russia would do all it could to help Iran.
Major global central banks are set to hold interest rates steady this week.
The European Central Bank (ECB) will meet on Thursday, with a ceasefire easing the pressure on it for an immediate interest rate hike. Higher interest rates increase consumer borrowing costs, which can reduce economic growth and oil demand.
Traders are betting that the US Federal Reserve, ECB, Bank of Japan, and Bank of England will all maintain rates at current levels.
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