Economy
Oil Prices Drop 4% on Weakening Global Manufacturing Data
By Adedapo Adesanya
Oil prices dropped about 4 per cent on Monday as weak manufacturing data in several countries weighed on the demand outlook.
Brent crude futures fell $3.94 or 3.8 per cent to settle at $100.03 a barrel while the US West Texas Intermediate (WTI) crude fell $4.73 or 4.8 per cent to settle at $93.89 a barrel.
The market sentiment at the start of this month was one of concern about the pace of global oil demand across the United States, Europe and Asia struggled for momentum in July over flagging global demand.
In China, the world’s largest oil importer, factory activity unexpectedly contracted and its manufacturing Purchasing Managers’ Index (PMI) improved only marginally in July and was well below expectations.
In China, COVID flare-ups in July led to an unexpected contraction in factory activity, according to data from the Chinese National Bureau of Statistics.
Per the Caixin China General Manufacturing PMI, the rate of improvement in China’s business conditions eased in July from a 13-month high in June and was only marginal.
Weak economic data from China rekindled fears about an economic slowdown in major economies and importers of crude, which could weigh on oil demand going forward.
In the US, the Institute for Supply Management (ISM) said on Monday that its index of factory activity dipped to 52.8 last month, the lowest reading since June 2020, when the sector was pulling out of a COVID-19-induced slump. The ISM PMI index was at 53.0 in June. A reading above 50 indicates expansion in manufacturing, which accounts for 11.9 per cent of the US economy.
PMI readings were also weaker in July than in June in the major Eurozone countries and in South Korea.
In the Eurozone, S&P Global’s final manufacturing Purchasing Managers’ Index (PMI) fell to 49.8 in July from June’s 52.1, its first time below the 50 mark separating growth from contraction since June 2020.
On Wednesday, traders and market analysts will be watching the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ monthly meeting on August 3, the first after the group decided to have all the 2020 cuts rolled back by the end of this month.
While OPEC+ aimed to have fully unwound its record output cuts by this month, data showed the group as of June was still almost 3 million barrels per day short of its output target as some producing countries like Nigeria struggle to bring wells back on line.
Also weighing on prices was a rise in Libyan oil production, which hit 1.2 million barrels per day, up from 800,000 barrels per day on July 22, after the lifting of a blockade on several oil facilities.
By Adedapo Adesanya
Four securities lifted the NASD Over-the-Counter (OTC) Securities Exchange by 0.85 per cent on Tuesday, May 5, with the market capitalisation growing by N20.52 billion to N2.429 trillion from N2.409 trillion, and the Unlisted Security Index (NSI) advancing by 34.30 points to 4,060.94 points from 4,026.64 points.
Yesterday, FrieslandCampina Wamco Nigeria Plc, the parent company of popular milk brands like Peak Milk and Three Crowns, appreciated by N8.72 to N106.90 per share from N98.14 per share, NASD Plc increased its value by N6.13 to N37.36 per unit from N31.23 per unit, Lagos Building Investment Company (LBIC) Plc gained 35 Kobo to close at N3.82 per share versus N3.47 per share, and Geo-Fluids Plc jumped by 10 Kobo to N3.10 per unit versus N3.00 per unit.
However, the price of Food Concepts Plc, which has the popular Chicken Republic under its belt, lost 5 Kobo during the session to trade at N2.36 per share versus N2.41 per share.
The volume of securities traded fell by 9.5 per cent to 679,768 units from 751,518 units, and the value of securities dropped 12.6 per cent to N30.9 million from N35.4 million, while the number of deals surged by 41.9 per cent to 44 deals from 31 deals.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis with 3.4 billion units transacted for N8.4 billion, followed by CSCS Plc with 60.3 million units traded for N4.1 billion, and Okitipupa Plc with 27.8 million units valued at N1.9 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis with 3.4 billion units sold for N8.4 billion, trailed by Resourcery Plc with 1.1 billion units worth N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units exchanged for N1.2 billion.
By Aduragbemi Omiyale
Dangote Cement Plc has cemented its position as Africa’s leading cement exporter by growing its cement and clinker exports from Nigeria by 71.6 per cent in the first quarter of 2026.
In its unaudited results released to the Nigerian Exchange (NGX) Limited, the cement manufacturer said its total installed production capacity has reached 55 million tonnes per annum (MTA) across Africa.
The company operates 35.25MTA capacity in Nigeria, where its Obajana plant in Kogi State—the largest in Africa—has 16.25MTA capacity across five lines. The Ibese plant in Ogun State has 12MTA, the Gboko plant in Benue State has 4MTA, while the Okpella plant in Edo State has 3MTA.
It was revealed that 10 clinker shipments were taken from Nigeria to neighbouring markets in the period under review, boosting the total sales volumes by 13.8 per cent year-on-year, driven by growth of 11.5 per cent in Nigeria and 19.5 per cent across its pan‑African operations.
It was observed that revenue was up by 20.4 per cent year‑on‑year to N1.198 trillion, driven by a strong rebound in volumes, which grew 13.8 per cent across our markets, while EBITDA increased by 22.8 per cent to N567.1 billion, demonstrating the strength of our operating model, disciplined cost control, and our ability to convert growth into superior profitability.
Between January and March 2026, the cement maker posted a profit before tax of N421.1 billion, representing a 35 per cent increase from N311.9 billion recorded in the corresponding period of 2025, while earnings per share rose to N19.14, up from N12.29, underscoring sustained value creation for shareholders.
In his remarks, the chief executive of Dangote Cement, Mr Arvind Pathak, said the results reflected the strength of the company’s operating model and its disciplined execution across markets.
“Our export business continues to scale rapidly, with volumes from Nigeria up 71.6 per cent and 10 clinker shipments completed in the quarter. This performance reinforces our strategic position as Africa’s leading cement exporter,” he said.
“Following the commissioning of our 3Mta grinding plant in Côte d’Ivoire, we are progressing well with our expansion projects in Itori and Ethiopia, alongside other growth initiatives across the continent. These investments will further strengthen our footprint and keep us firmly on track to reach 80Mt of production capacity by 2030,” he added.
Looking ahead to the rest of the year, Mr Pathak expressed confidence in the company’s growth outlook.
“We have entered the year with strong momentum and a clear strategic focus. Demand across our markets remains resilient, our expansion pipeline is delivering, and our operational discipline continues to drive margin improvement. We remain confident in sustaining this growth trajectory and in consistently delivering long‑term value to our shareholders,” he stated.
By Adedapo Adesanya
The Naira weakened against the United States Dollar by N1.33 or 0.1 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, May 5, to N1,366.56/$1 from Monday’s N1,365.23/$1.
In the same market segment, the Nigerian currency also depreciated against the Pound Sterling during the session by N1.53 to sell for N1,851.25/£1 compared with the previous day’s N1,852.78/£1, but against the Euro, it appreciated by 22 Kobo to close at N1,598.74/€1 versus N1,598.96/€1.
For the second consecutive trading session, the Naira maintained stability against the Dollar at the GTBank forex counter at N1,384/$1 on Tuesday, and also at the parallel market at N1,380/$1.
Data from the Central Bank of Nigeria (CBN) revealed a sharp increase in interbank foreign exchange activity, driving today’s liquidity level in the official window.
Interbank FX turnover surged to $71.587 million across 99 deals, from $59.933 million reported the previous day. Elsewhere, Nigeria’s foreign reserves continue to decline, falling to $48.34 billion amid elevated global oil prices.
Global oil prices fell on Tuesday, a day after the US launched an operation aimed at reopening the Strait of Hormuz to shipping traffic, but exchanges of fire between the United States and Iran slowed the decline.
The Naira remained within the expected trading range as the CBN last month defended the Naira with $150 million, around 83 per cent below the equivalent amount injected into the official window in March.
Meanwhile, easing Iran tensions and renewed AI optimism fueled a broad risk-on rally in the cryptocurrency market, with Cardano (ADA) up by 4.3 per cent to $0.2634.
Further, Dogecoin (DOGE) gained 3.6 per cent to settle at $0.1154, Solana (SOL) improved by 3.1 per cent to $87.22, Ripple (XRP) increased by 1.5 per cent to $1.42, Binance Coin (BNB) added 1.3 per cent to sell for $634.67, TRON (TRX) expanded by 1.3 per cent to $0.3436, and Bitcoin (BTC) soared by 0.6 per cent to $81,323.62.
However, Ethereum (ETH) declined by 0.3 per cent to $2,363.37, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat flat at $1.00 each.
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