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
The National Insurance Commission (NAICOM) has formally issued an operational licence to an insurance technology (insurtech) company, CBI Partnering Insurtech Limited.
It was the first issued by the regulator in Nigeria, and it is aimed at opening up the sub-sector of the underwriting industry to boost innovation and services.
This development underscores NAICOM’s regulatory leadership in fostering innovation within a structured and consumer-focused insurance ecosystem.
The licence was presented during a formal handover ceremony, where the commission reiterated its commitment to advancing innovation, regulatory reform, and policyholder protection across the insurance sector.
In his remarks, the Deputy Commissioner for Insurance, Finance and Administration, Mr Ekerete Ola Gam-Ikon, highlighted the agency’s ongoing efforts to align Nigeria’s insurance industry with global best practices.
He referenced the recent enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, alongside the Commission’s pioneering insurtech guidelines, as some of the key pillars driving this transformation.
He noted that fostering innovation within a robust and well-governed regulatory framework remains a core strategic priority for the commission.
Mr Ekerete further emphasised that the licence is granted subject to strict compliance with regulatory and ethical standards, reinforcing NAICOM’s dual mandate of enabling innovation while safeguarding policyholders’ interests.
He also pointed to the growing international recognition of Nigeria’s regulatory approach, particularly in leveraging technology to accelerate insurance sector development.
While formally presenting the licence, he stated, “This milestone reflects the commission’s commitment to responsibly nurturing innovation across the insurance value chain.
“We congratulate CBI Partnering Insurtech Ltd and expect full compliance with all applicable regulations. This licence carries an obligation to uphold the highest standards of governance and ethical conduct.
“NAICOM remains committed to supporting the growth of insurtech while protecting the interests of Nigerians.”
In response, the Managing Director of CBI, Mr Suleiman Olalekan Ajani, expressed appreciation to NAICOM for its guidance and rigorous licensing process, stating:
“We are honoured to receive this licence from NAICOM. The Commission’s robust regulatory framework provides the foundation for us to scale strategic partnerships and deliver technology-driven insurance solutions that prioritise consumer trust, transparency, and protection.”
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange ended the first trading day of the week on a positive note, with a 0.39 per cent appreciation on Monday, May 25.
The positive vibe raised the market capitalisation of the trading platform by N10.11 billion to N2.571 trillion from last Friday’s N2.561 trillion, and lifted the NASD Unlisted Security Index (NSI) by 16.89 points to 4,298.17 points from the previous 4,281.28 points.
Business Post reports that the bourse recorded three appreciating securities and one depreciating stock at the close of transactions, with the sole price decliner being 11 Plc, which lost N23.43 to sell at N221.10 per share compared with the preceding session’s N244.53 per share.
Central Securities and Clearing System (CSCS) Plc gained N3.78 yesterday to trade at N74.85 per unit versus the previous price of N71.07 per unit, NASD Plc improved its price by N2.86 to N37.36 per share from N34.50 per share, and FrieslandCampina Wamco Nigeria Plc grew by 33 Kobo to N180.00 per unit from N179.67 per unit.
The volume of trades jumped by 153.1 per cent during the session to 59.2 million units from the preceding session’s 590,339 units, but the value of transactions fell by 37.9 per cent to N59.3 million from the N95.3 million achieved last Friday, and the number of deals contracted by 10 per cent to 27 deals from 30 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units traded for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 61.2 million units exchanged for N4.1 billion.
GNI Plc also closed the trading day as the most traded equity by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units exchanged for N415.7 million.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited ended in the green territory on Monday after it chalked up 0.57 per cent on the back of renewed buying interest in financial equities.
The local stock exchange witnessed the insurance and the banking counters closing higher by 0.54 per cent and 0.08 per cent, respectively, amid profit-taking in the others. The energy index shed 1.77 per cent and the consumer goods sector depreciated by 0.26 per cent, while the industrial goods industry was flat.
At the close of business, the All-Share Index (ASI) went up by 1,412.65 points to 251,125.02 points from 249,712.37 points, and the market capitalisation soared by N906 billion to N160.983 trillion from N160.077 trillion.
Investor sentiment was bullish yesterday after Customs Street ended with 35 price gainers and 30 price losers, indicating a positive market breadth index.
Airtel Africa surged 10.00 per cent to N3,655.70, International Energy Insurance advanced by 9.68 per cent to N3.74, Sovereign Trust Insurance went up by 9.65 per cent to N2.50, Caverton rose by 9.63 per cent to N7.40, and VFD Group gained 9.55 per cent to close at N10.90.
Conversely, McNichols lost 10.00 per cent to finish at N7.20, The Initiates dropped 9.91 per cent to trade at N30.45, Learn Africa slipped by 9.69 per cent to N11.65, Zichis crashed by 7.93 per cent to N30.98, and May and Baker declined by 6.60 per cent to N46.70.
During the trading day, market participants transacted 629.4 million shares worth N40.9 billion in 82,434 deals compared with the 711.9 million shares valued at 29.1 billion traded in 62,386 deals last Friday, implying a decline in the trading volume by 11.59 per cent, and a rise in the trading value and number of deals by 40.55 per cent and 32.14 per cent, respectively.
Access Holdings was the busiest equity for the session with a turnover of 61.3 million units valued at N1.5 billion. Zenith Bank traded 37.9 million units worth N5.0 billion, Fidelity Bank sold 35.8 million units for N851.2 million, Japaul exchanged 24.7 million units valued at N90.9 million, and Tantalizers transacted 22.8 million units worth N103.2 million.
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