Economy
OPEC Fund Okays $233m for Global Economy
By Adedapo Adesanya
The Organisation of the Petroleum Exporting Countries (OPEC) Fund for International Development has approved $233 million in new funding to support economic recovery, new infrastructure funding, and boost food security.
The agreement was approved at the 179th session of its Governing Board in Vienna and will benefit public sector projects promoting sustainable development around the world starting with four countries – Kosovo, Pakistan, Uzbekistan, and Zimbabwe.
In Kosovo, a $40 million loan was approved by OPEC Fund for the Public Finances and Economic Growth Programme to support the government’s priorities set out in its National Development Strategy 2030 aimed at strengthening partnerships, transitioning to a greener economy and improving socio-economic indicators.
The programme, developed with the World Bank Group, will improve fiscal transparency, promote private sector development by streamlining the country’s regulatory framework, and enable environmental reforms in the energy and waste management sectors.
In Pakistan, $72 million was granted in loan for the Mohmand Dam Multipurpose Project will finance the construction of a hydropower dam and the provision of equipment. The dam will have a 1.6 million square meter reservoir and diversion tunnels that will feed into new and existing irrigation canals.
Once completed, the Mohmand Dam will increase the country’s installed renewables capacity by 800 MW and provide sustainable potable water to two million residents in Peshawar city.
The project will also enhance food security through higher crop yields on almost 15,000 hectares of farmland while improving the region’s resilience to floods.
For Uzbekistan, it got a $100 million loan for the Accelerating Uzbekistan’s Transition Program will support the country’s transition to a market economy by improving resource allocation and enabling private sector investment.
The programme includes enhancing the role of the private sector, improving the management of state-owned enterprises, enhancing fiscal transparency and accountability, and increasing economic and social inclusion, particularly for women and people with disabilities.
In Africa, Zimbabwe was handed a $15 million loan for the Smallholder Agriculture Cluster Project aims to increase household incomes, and improve food security and nutrition of more than 390,000 people in five provinces of the country through the value chain development and provision of infrastructure.
The OPEC Fund’s loan will finance the construction of small-scale, climate-resilient irrigation schemes, the repair of 90 kilometres of feeder roads and the installation of water supply and sanitation facilities.
The Governing Board also approved three grants totalling $6 million for joint OPEC Fund technical cooperation facilities with three co-financing partners – the Asian Development Bank ($3 million), the Development Bank of Latin America ($1 million) and the European Bank for Reconstruction and Development ($2 million).
The facilities will primarily be used to finance project preparation related activities, such as feasibility studies, in order to help ensure improved project readiness, and build a strong pipeline of bankable sovereign and non-sovereign operations. Potential sectors will include agriculture, energy, transportation, water & sanitation, and manufacturing and services.
The OPEC Fund was established by the member countries of OPEC in 1976 with a distinct purpose which includes driving development, strengthening communities and empowering people.
To date, the OPEC Fund has committed more than $22 billion to development projects in over 125 countries with an estimated total project cost of $187 billion. It is rated AA+/Outlook Stable by Fitch and AA/Positive Outlook by S&P in 2021.
By Aduragbemi Omiyale
More petroleum marketers are looking to take advantage being offered by the Dangote Refinery in Lagos through its bulk-purchase incentives, allowing petrol stations to sell premium motor spirit (PMS), otherwise known as petrol, cheaper to motorists.
Recall that recently, Dangote Refinery entered into a deal with MRS Oil Nigeria, Ardova Plc, Heyden for the purchase of petrol at least two million litres at N909 per litre.
With this agreement, MRS Oil has been able to dispense to customers at a pump price of N935 per litre across its stations in Nigeria.
For those not under this arrangement, they have been battling with price instability, especially after depot owners recently increased their price to N950 per litre from N909 per litre because of the rise in crude oil prices in the international market.
Worried by this and attracted by the bulk-purchase agreement incentives of Dangote Petroleum Refinery, the Independent Petroleum Marketers Association (IPMAN) is already having talks to buy directly from the Lagos-based oil facility.
The national president of the group, Mr Abubakar Maigandi Garima, said members are eager to sign on with Dangote Refinery for the bulk-purchase agreement.
He argued that members could not continue to depend on depot owners for products when they can buy directly from the refinery bearing in mind that the minimum quantity to buy from Dangote Refinery is two million litres at N909 per litre.
The desire to be part of the bulk-purchase agreement, it was also gathered, was also apparently being fuelled by the testimonies from motorists who have been praising the impressive burn rate of fuel sourced from Dangote Refinery and sold in MRS filing stations which they said lasts longer compared to other products imported into the country and sold by others.
The management of the Dangote Refinery, citing economic relief provided by President Bola Ahmed Tinubu’s crude-for-naira swap initiative, had announced a bulk-purchase offer incentives to the three leading downstream sector operators, so that Nigerians could heave a sigh of relief on the reduced pump price.
By Adedapo Adesanya
The World Bank has projected a 3.6 per cent economic growth for Nigerian in 2025 and 2026 on the back of ongoing reforms by the federal government.
The Bretton Wood institution in its report titled Global Economic Prospects, January 2025 published on Thursday, said recent reforms, including subsidy removal, Naira liberalisation and the introduction of tax reform bills would help to boost business confidence.
“In Nigeria, Gross Domestic Product (GDP) growth increased to an estimated 3.3 per cent in 2024, mainly driven by services sector activity, particularly in financial and telecommunication services.
“Macroeconomic and fiscal reforms helped improve business confidence. In response to rising inflation and a weak naira, the central bank tightened monetary policy.
“Meanwhile, the fiscal deficit narrowed due to a surge in revenues driven by the elimination of the implicit foreign exchange subsidy, following the unification of the exchange rate and improved revenue administration,” a part of the report stated.
The World Bank noted that the wider Sub-Saharan Africa, to which Nigeria belongs would see a 4.1 per cent growth in the current year, before seeing a 4.3 per cent rise in 2026.
“Growth in Sub-Saharan Africa, SSA is expected to firm to 4.1 per cent in 2025 and 4.3 per cent in 2026, as financial conditions ease alongside further declines in inflation. Following weaker-than-expected regional growth last year, growth projections for 2025 have been revised upward by 0.2 percentage points, and for 2026 by 0.3 percentage points, with improvements seen across various subgroups. At the country level, projected growth has been upgraded for nearly half of SSA economies in both 2025 and 2026.
“Growth in Nigeria is forecast to strengthen to an average of 3.6 per cent a year in 2025-26. Following monetary policy tightening in 2024, inflation is projected to gradually decline, boosting consumption and supporting growth in the services sector, which continues to be the main driver of growth,” it added.
The global lender disclosed that oil production is expected to increase over the forecast period but remain below the 1.5 million barrels per day quota of the Organisation of the Petroleum Exporting Countries (OPEC).
By Adedapo Adesanya
Four price gainers helped the NASD Over-the-Counter (OTC) Securities Exchange close higher by 0.35 per cent on Thursday, January 16.
The value of the trading platform jumped by N3.69 billion during the session to N1.072 trillion from the N1.068 trillion it closed in the preceding session, and the NASD Unlisted Security Index (NSI) made an addition of 10.67 points to wrap the session at 3,103.83 points compared with 3,093.16 points recorded at the previous session.
Industrial and General Insurance (IGI) Plc added 3 Kobo to its price yesterday to trade at 33 Kobo per unit compared with Wednesday’s closing price of 30 Kobo per unit, Newrest Asl Plc appreciated by N2.85 to N31.18 per share from N28.53 per share, 11 Plc gained N2.90 to close at N256.00 per unit versus the N253.10 per unit it finished a day earlier, and FrieslandCampina Wamco Nigeria Plc grew by 21 Kobo to N39.16 per share, in contrast to midweek’s N38.95 per share.
On Thursday. there was an 85.3 per cent increase in the volume of securities traded by investors to 1.2 million units from the 666,494 units recorded in the preceding session, the value of shares traded surged by 8.9 per cent to N18.0 million from N16.5 million, and the number of deals leapt by 65 per cent to 33 deals from 20 deals.
FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 3.4 million units worth N134.9 million, trailed by Geo-Fluids Plc with 8.9 million units sold for N43.0 million, and Afriland Properties Plc valued at 690,825 sold for N11.1 million.
IGI Plc closed the day as the most active stock by volume (year-to-date) with 23.5 million units sold for N5.3 million, followed by Geo-Fluids Plc with 8.9 million units valued at N43.0 million, and FrieslandCampina Wamco Nigeria Plc followed with 3.4 million units worth N134.9 million.
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