Economy

Oil Rich S’South, Conflict Ridden N’East Attract $0 into Nigeria in Q2 2020

Published

5 years ago

19/09/2020

By Adedapo Adesanya

Nigeria’s capital importation dropped 78 per cent year-on-year in the second quarter of the year as $1.3 billion was received as FX inflow in the period under review.

However, out of this amount, it was observed that only four of the six geo-political zones of the country made contribution to the inflow, while two provided nothing.

Nigeria is divided into six geo-political zones; South-West, South-East, South-South, North-West, North East and North-Central.

In the Nigerian Capital Importation Q2 2020 report released by the National Bureau of Statistics (NBS) recently, only South-South and North East regions of the country did not attract external funds between April and June 2020.

In the report by the stats office, the decline in capital inflows of $1.3 billion in the second quarter of this was attributed to the effect of COVID-19 pandemic, which halted economic activities in most parts of the world.

In Q2 2020, none of the six states in the South-South region of Nigeria; Akwa-Ibom, Bayelsa, Cross-River, Delta, Edo, and Rivers attracted any form of foreign capital into the country just like the six states in the North-Eastern territory; Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe.

The South-South, otherwise known as the Niger Delta, is where crude oil, which brings in the lion share of the country’s foreign exchange is sourced from. Equally, three of the four government-owned refineries are located in the region but they have become unproductive and are shut down, according to the Group Managing Director of the Nigerian National Petroleum Corporation, Mr Mele Kyari.

The North East is faced by conflicts imposed by the Boko Haram terrorists and bandits, with many inhabitants of the region displaced from their homes, making it difficult to attract any foreign investments or businesses.

If this analysis was to be done by states, only six out of the 36 states of the federation and the Federal Capital Territory (FCT) attracted foreign investment into Africa’s largest economy in the period under review.

Two states in the South West raked in $1.14 billion led by Lagos State responsible for the chunk of $1.13 billion while its neighbour, Ogun State, recorded $11 million for the period. Meaning that states like Oyo, Osun, Ondo, and Ekiti were blank in terms of FX inflows.

In the South-East, the NBS data showed that only Anambra made a contribution of $1.16 million in the period while counterpart states like Abia, Ebonyi, Enugu, and Imo did not attract foreign investment.

In the North-Central, the input of the FCT ($145.30 million) and Niger State ($6.9 million) totalling $152.2 million was the investment that came from the region, while states such as Benue, Kogi, Kwara, Nasarawa, and Plateau had no foreign investment in the period under review, according to the stats office.

Kano was the only state located in North West region which brought capital importation to the country as it saw an investment of $130,000 while Kaduna, Sokoto, Jigawa, Kebbi, Zamfara, and Katsina had no inflow.

The NBS showed that the largest amount of capital importation by type in Q2 2020 was received through other investments, which accounted for 58.8 per cent ($761.03 million) of total capital imported during the quarter. Inflows from other investments declined by 42.8 per cent as against $1.33 billion received in the previous quarter and a further 48.6 per cent reduction compared to $1.48 billion recorded in the corresponding quarter of 2019.

The United Kingdom emerged as the biggest source of capital investment in Nigeria. In Q2 2020, investment from the UK amounted to $428.8 million, a decline of 85.3 per cent compared to $2.91 billion recorded in the previous quarter and 87.1 per cent compared to $3.33 billion in Q2 2019.

Other countries that accounted for the biggest share of capital inflows into Nigeria during the period were South Africa ($149.3 million), UAE ($145.2 million), Netherlands ($141.3 million) and Singapore (134.4 million).

Economy

NASD Exchange Rises 1.22% on Sustained Bargain-Hunting

Published

19 hours ago

28/02/2026

Adedapo Adesanya

By Adedapo Adesanya

Strong appetite for unlisted stocks further raised the NASD Over-the-Counter (OTC) Securities Exchange by 1.22 per cent on Friday, February 27.

Data revealed that the NASD Unlisted Security Index (NSI) was up by 49.41 points to 4,083.87 points from 4,034.46 points, and lifted the market capitalisation by N19.56 billion to N2.433 trillion from N2.413 trillion.

The volume of securities bought and sold by investors increased by 243.0 per cent to 4.5 million units from 1.3 million units, and the number of deals grew by 15.8 per cent to 44 deals from 38 deals, while the value of securities went down by 19.7 per cent to N82.5 million from N102.8 million.

Central Securities Clearing System (CSCS) Plc ended the session as the most active stock by value on a year-to-date basis with 35.0 million units valued at N2.1 billion, followed by Okitipupa Plc with 6.3 million units worth N1.1 billion, and Geo-Fluids Plc with 122.8 million units transacted for N480.4 million.

Resourcery Plc ended the day as the most traded stock by volume on a year-to-date basis with 1.05 billion units sold for N408.7 million, followed by Geo-Fluids Plc with 122.8 million units valued at N480.4 million, and CSCS Plc with 35.0 million units traded for N2.1 billion.

There were six price gainers yesterday led by FrieslandCampina Wamco Nigeria Plc, which added N9.02 to close at N111.46 per unui compared with the previous day’s N102.44 per unit, Nipco Plc appreciated by N6.00 to N284.00 per share from N278.00 per share, CSCS Plc recouped N1.87 to sell at N70.12 per unit versus Thursday’s value of N68.25 per unit, Geo-Fluids Plc improved by 17 Kobo to close at N3.18 per share versus N3.01 per share, Industrial and General Insurance (IGI) Plc advanced by 5 Kobo to sell at N50 Kobo per unit versus the preceding day’s 45 Kobo per unit, and Acorn Petroleum Plc chalked up 2 Kobo to settle at N1.34 per share, in contrast to the previous day’s N1.32 per share.

Economy

FX Liquidity Crunch Sinks Naira to N1,363/$1 at NAFEX, N1,370/$1 at Black Market

Published

19 hours ago

28/02/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira performed poorly against the United States Dollar in the different segments of the foreign exchange (FX) market on February 27, closing the week without a gain.

In the black market, the domestic currency weakened against the Dollar yesterday by N5 to close at N1,370/$1 compared with Thursday’s closing price of N1,365/$1, and at the GT Bank forex desk, it lost N2 to sell N1,369/$1 versus the N1,367/$1 it was sold a day earlier.

Yesterday, the Nigerian Naira lost N3.75 or 0.26 per cent against the greenback at the Nigerian Autonomous Foreign Exchange Market (NAFEX) to trade at N1,363.39/$1 compared with the previous day’s N1,359.82/$1.

Also, the Naira depreciated against the Euro at the official market during the session by N2.33 to quote at N1,609.22/€1 versus N1,606.89/€1, and appreciated against the Pound Sterling by N6.74 to settle at N1,836.49/£1 compared with the preceding session’s N1,843.23/£1.

The Naira’s latest depreciation occurred as FX demand continued to outpace available supply, intensifying pressure in the market.

In response to the negative momentum, the Central Bank of Nigeria (CBN) intervened by selling Dollars to banks and other authorised dealers in an effort to stabilise the local currency. The move came barely a week after the apex bank had purchased about $190 million from the foreign exchange market to temper the Naira’s rally.

Specifically, the CBN injected $200 million into the official market between Tuesday and Wednesday through an intervention call. However, the liquidity support proved insufficient to reverse the currency’s downward trend.

Meanwhile, the cryptocurrency market declined on Friday, with Solana (SOL) down by 10.4 per cent to $78.60, as Dogecoin (DOGE) decreased by 9.5 per cent to $0.0982.

Further, Cardano (ADA) slumped 8.9 per cent to $0.2647, Ethereum (ETH) slipped by 8.6 per cent to $1,859.10, Ripple (XRP) shrank by 8.2 per cent to $1.30, Litecoin (LTC) lost 1.4 per cent to close at $52.39, Bitcoin (BTC) slid 5.9 per cent to $63,686.39, and Binance Coin (BNB) went down by 4.9 per cent to $596.64, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.

Economy

Oil Prices Climb on Geopolitical Anxiety

Published

19 hours ago

28/02/2026

Adedapo Adesanya

By Adedapo Adesanya

Oil prices rose about 2 per cent on Friday, with traders bracing for supply disruptions as nuclear talks between the United States and Iran were without an agreement.

Brent crude futures settled at $72.48 a barrel after chalking up $1.73 or 2.45 per cent, while US West Texas Intermediate crude futures finished at $67.02 a barrel, up $1.81 or 2.78 per cent.

The two sides agreed to extend indirect negotiations into next week, but traders grew sceptical that an agreement between US President Donald Trump’s administration and Iran was possible.

The US and Iran held indirect talks in Geneva on Thursday after Mr Trump ordered a military buildup in the region.

Oil prices gained during the talks, on media reports indicating that discussions had stalled over U.S. insistence on zero enrichment of uranium by Iran. However, prices eased after the mediator from Oman said the two sides had made progress.

They plan to resume negotiations with technical-level discussions scheduled next week in Vienna, Omani Foreign Minister Sayyid Badr Albusaidi said on X.

Market analysts noted that geopolitical risk premiums of $8 to $10 a barrel have been built into oil prices on fears that a conflict will disrupt Middle East supply through the Strait of Hormuz, where about 20 per cent of global oil supply passes.

To cushion the impact from a possible strike, one of the world’s largest oil producers, the United Arab Emirates (UAE), is set to export more of its flagship Murban crude in April, while Saudi Arabia said it would also increase oil production.

Additionally, Saudi Arabia may raise its April crude price to Asia for the first time in five months due to higher demand from India to replace Russian supplies, potentially raising it by about $1 a barrel.

Meanwhile, the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) is likely to consider raising oil output by 137,000 barrels per day for April at its March 1 meeting, after suspending production increases in the first quarter.

The resumption of output increases after a three-month pause would allow Saudi Arabia and the UAE to regain market share at a time when other OPEC+ members, such as Russia and Iran, contend with Western sanctions while Kazakhstan recovers from a series of oil production setbacks.

Eight OPEC+ producers – Saudi Arabia, Russia, the United Arab Emirates, Kazakhstan, Kuwait, Iraq, Algeria and Oman will meet at the meeting on Sunday.