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Tinubu Backs Implementation of $5bn Floating LNG Project

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FLNG facility

By Adedapo Adesanya

President Bola Tinubu has backed the implementation of a $5 billion Floating Liquefied Natural Gas (LNG) project in the country.

The President gave the backing when he received a group of joint venture partners made up of UTM FLNG, TECHNIP Energies, and JGC Corporation in his office, alongside Ambassadors of France and Japan, to Nigeria on Wednesday.

Addressing State House correspondents after the meeting with the President, the leader of the delegation and Group Managing Director of UTM FLNG, Mr Julius Rone, said that a $5 billion loan has been signed with Afreximbank for the implementation of the floating LNG project.

Mr Rone, who conveyed the President’s stance, said the project has the capacity to generate 7,000 direct jobs and produce 300,000 tons of LPG every year.

He further disclosed that it is the first time in Nigeria that an indigenous company will be involved in such a project that would contribute to the decarbonisation efforts in Nigeria.

The first floating LNG project in Nigeria, according to him, is expected to come on stream by the first quarter of 2026.

During the President Muhammadu Buhari administration, the project was expected to be completed in 2025.

The former president said that the project was in line with the vision of the Federal Government to transform Nigeria into a gas-based economy by 2030.

This, he noted, was part of the declaration of 2021 – 2030 as the decade of gas, adding that it was becoming a solid reality with the commencement of preliminary engineering of the LNG project.

The FLNG facility was touted as a step forward in the right direction for the country to develop, exploit and monetize its over 209 trillion cubic feet (tcf) of proven gas resources and a potential upside of 600 tcf of gas to ensure energy security, economic growth and the reduction in emissions.

When the construction of the FLNG facility is completed, it will have an LNG nameplate production capacity of 1.2 million metric tonnes per annum and a storage capacity of 200,000 cubic meters, as well as ancillary facilities to be located 60 km from the shore of Akwa Ibom State.

It was also noted will create value and improve the contributions of the oil and gas sector to Nigeria’s Gross Domestic Product (GDP).

According to market research analysts, the FLNG market is estimated to increase at a compound annual growth rate (CAGR) of 27.14 per cent, reaching $88.99 billion by 2024.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Economy

NASD Index Depreciates by 0.39%

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NASD OTC market

By Adedapo Adesanya

For the fourth consecutive trading session, the NASD Over-the-Counter (OTC) Securities Exchange remained in the red territory after it further depreciated by 0.39 per cent on Thursday, August 7.

This brought down the market capitalisation of the trading platform by N8.33 billion during the session to N2.143 trillion from the N2.152 trillion it ended a day earlier, and contracted the NASD Unlisted Security Index (NSI) by 14.24 points to 3,660.29 points, in contrast to the 3,674.53 points it finished at midweek.

Central Securities Clearing System (CSCS) Plc crashed by 75 Kobo on Thursday to close at N54.00 per unit versus Wednesday’s N54.75 per unit, NASD Plc slumped by 36 Kobo to N30.26 per share from N30.50 per share, Food Concepts Plc lost  22 Kobo to end at N3.21 per unit compared with the previous day’s N3.43 per unit, and FrieslandCampina Wamco Nigeria Plc plunged by 21 Kobo to N69.61 per share from N69.82 per share.

On the flip side, Okitipupa Plc added N1.50 to finish at N2.40 per unit versus N238.50 per unit, Lagos Building Investment Company (LBIC) Plc advanced by 6 Kobo to N3.08 per share from N3.02 per share, UBN Property Plc grew by 5 Kobo to N2.00 per unit from N1.95 per unit, and Industrial and General Insurance (IGI) Plc gained 4 Kobo to close at 39 Kobo per share versus 35 Kobo per share.

At the session, the volume of securities shrank by 93.1 per cent to 1.6 million units from 22.9 million units, the number of deals decreased by 29.8 per cent to 40 deals from 57 deals, while the value of securities increased by 89.1 per cent to N54.9 million from N29.1 million.

IGI Plc ended the day as the most traded stock by volume on a year-to-date basis with 1.1 billion units sold for N362.0 million, trailed by Impresit Bakolori Plc with 536.9 million units worth N524.8 million, and Air Liquide Plc with 507.2 million units valued at N4.2 billion.

Okitipupa Plc was the most traded stock by value on a year-to-date basis with 154.4 million units transacted for N5.0 billion, followed by Air Liquide Plc with 507.2 million units traded for N4.2 billion, and FrieslandCampina Wamco Nigeria Plc with 43.7 million units valued at N1.9 billion.

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Economy

Naira Crashes to N1,565/$1 at Black Market, Sells N1,534 at Official Market

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Official FX Market

By Adedapo Adesanya

It was not good day for the Naira in the black market segment of the foreign exchange (FX) market on Thursday. August 7, as its value significantly weakened against the US Dollar at the close of business.

Data obtained by Business Post from forex traders showed that the local currency crashed against the greenback yesterday by N22, the highest single-day loss in a while, to sell for N1,565/$1 compared with the N1,543/$1 it was exchanged on Wednesday.

This significant loss was largely blamed on speculators, who bet that the customers may begin to demand for FX later this month and next month for end of the year travels and school fees payment.

However, in the Nigerian Autonomous Foreign Exchange Market (NAFEM) window, which is controlled by the Central Bank of Nigeria (CBN), the Nigerian Naira slightly closed stronger against the Dollar yesterday by 17 Kobo or 0.01 per cent to quote at N1,534.34/$1 compared with the preceding session’s N1,534.51/$1.

Also in the official market, the Nigerian currency lost N15.16 against the Pound Sterling during the trading day to trade at N2,059.03/£1 versus N2,043.87/£1 and depreciated against the Euro by N4.39 to finish at N1,787.56/€1, in contrast to the N1,783.17/€1 it was traded at midweek session.

Market analysts and traders have maintained that the Naira will appreciate further given persistent FX injections by the central bank backed by flows to unofficial currency market, which has helped to stabilised the Naira, and reduce exchange rates gap to minimal level that discourage speculative transactions.

“We expect the FX market to continue to trade within the $1,500 to $1,600 band, supported by sustained reserve accretion and positive sentiment from recent macroeconomic revisions. However, subdued FX inflows could limit further Naira gains, keeping market dynamics sensitive to shifts in investor participation,” analysts at Coronation Merchant Bank noted earlier this week.

As for the digital currency market, a win-like situation for Ripple (XRP) lifted the mood of investors as the US Securities and Exchange Commission’s 2020 lawsuit against Ripple Labs was officially declared over.

This came after the two parties informed the Second Circuit Court of Appeals that they were voluntarily dismissing their respective appeals of a 2023 ruling in the case.

The SEC filed an appeal in 2024 after a district judge’s ruling in 2023 said that Ripple was making XRP available to retail traders through exchanges, while Ripple cross-appealed to maintain its arguments in the case.

The development saw XRP record a 10.9 per cent appreciation to close at $3.31, as Dogecoin (DOGE) went up by 7.4 per cent to $0.2203, and Cardano (ADA) added 6.9 per cent to trade at $0.7892.

Further, Ethereum (ETH) gained 5.9 per cent to close at $3,904.72, Solana (SOL) appreciated by 3.6 per cent to $174.50, Binance Coin (BNB) rose by 2.4 per cent to $785.60, and Bitcoin (BTC) increased by 1.8 per cent to $116,584.53.

However, Litecoin (LTC) went down by 1.1 per cent to end at $119.86, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.

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Economy

Stock Market Gains N479bn as Investors Mop up Available Insurance Equities

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stock market bulls

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited further improved by 0.52 per cent on Thursday as the market participants continued to react to the signing into law of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 by President Bola Tinubu this week.

Insurance equities, which had been like the Biblical dead bones on the stock exchange, is beginning to rise again as prophesied in Ezekiel 37.

At the moment on Customs Street, stocks under the underwriting sector are traders’ toast, pulling high trading volume and topping the gainers’ chart.

Yesterday, AIICO Insurance was the best-performing equity after it gained 10.00 per cent to sell for N3.19, University Press, AXA Mansard, and Cornerstone Insurance also improved by 10.00 per cent each to settle at N5.61, N13.31, and N5.83, respectively, and Guinness Nigeria appreciated by 9.98 per cent to N141.60.

On the flip side, Chams lost 9.94 per cent to close at N2.90, Austin Laz depreciated by 9.83 per cent to N2.11, Caverton sank by 9.65 per cent to N6.37, UAC Nigeria crashed by 9.44 per cent to N81.50, and John Holt slipped by 9.43 per cent to N7.20.

At the close of transactions, the Nigerian bourse recorded 44 price gainers and 34 price losers, representing a positive market breadth index and strong investor sentiment, triggered by persistent hunger for insurance shares.

During the session, the insurance chalked up 8.76 per cent, the consumer goods space gained 4.08 per cent, and the banking index appreciated by 0.20 per cent.

However, due to profit-taking, the industrial goods counter went down by 1.73 per cent, the energy industry depreciated by 0.93 per cent, and the commodity sector crumbled by 0.53 per cent.

Business Post reports that the All-Share Index (ASI) rose by 756.85 points to 146,570.71 points from 145,813.86 points and the market capitalisation jumped by N479 billion to N92.731 trillion from N92.252 trillion.

A total of 2.0 billion stocks valued at N27.3 billion were traded in 35,291 deals on Thursday compared with 2.7 billion stocks worth N32.6 billion transacted in 35,137 deals on Wednesday, showing a rise in the number of deals by 0.44 per cent, and a decline in the trading volume and value by 25.93 per cent and 16.23 per cent apiece.

Linkage Assurance posted a turnover of 372.4 million units valued at N703.1 million, Prestige Assurance traded 249.3 million units for N357.5 million, Veritas Kapital exchanged 181.9 million units worth N363.0 million, Sterling Holdings transacted 121.0 million units valued at N968.3 million, and Lasaco Assurance sold 58.7 million units worth N217.5 million.

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