President Bola Tinubu will travel to Beijing, China, in the first week of September, when he will sign many MOUs with his Chinese counterpart, President Xi Jinping. Ajuri Ngelale, the President’s Spokesman, stated this when briefing State House media on Tuesday.
He stated that the President would also pay visits to two important Chinese corporations: Huawei Technologies and the China Railway and Construction Corporation.
“This is with a view to achieving one of Mr. President’s top agenda items, which is the completion of the Ibadan-to-Abuja segment of the Lagos-Kano high-speed rail line,” said Ngelale.
He went on to say that the President would meet with the CEOs of ten large Chinese firms with assets under management totaling more than $3 trillion across several sectors of the economy.
Information and communication technology, oil and gas, aluminum production, harbor construction/dredging services, financial services, and satellite technology are among the industries represented. Ngelale stated that the series of meetings and activities would assist the Nigerian economy and people both now and in the future.
“The MOUs will involve agreements in deepening cooperation in green economy, agriculture, satellite technology development, media enterprise development and promotion, as well as blue economic development and national planning cooperation.
“This is going to be part of a broader engagement where the two heads of state will discuss matters of mutual interest across not just the economy but also on issues of national, regional, and international security,” said the spokesman.
According to him, the President will thereafter join the Forum on China-Africa Cooperation (FOCAC) Summit, where several African heads of state will be present to engage with Chinese leaders on various important matters.
He said President Tinubu would make a presentation in his capacity as the chairman of the ECOWAS Authority of Heads of State and Government on behalf of the region.
He said Tinubu would proceed to the high-level peace and security plenary, where he would further make a presentation on peace and security in the region and in Africa.
According to him, the engagement is expected to yield tangible, immediate, and future dividends for the Nigerian economy and for the benefit of the Nigerian people.
“The President will place a premium on deliverables, ensuring that this is not a talk show but will yield results for our people, justifying any expenditure that is made during the course of this trip,” said Ngelale.
The Central Bank of Nigeria (CBN) reduced the spot rate on OMO Bills by 2 basis points in the primary market auction on Tuesday, as investors bet heavily on the naira asset.
According to Bizwatch Nigeria, the two auctions were a failure since the authority failed to allocate the open market operations instrument to investors who bid.
The apex bank has recently reduced interest rates on government short-term borrowing instruments in response to changing market dynamics.
At today’s OMO auction, the CBN offered N500 billion across conventional maturities. The CBN sold ₦758.00 billion of OMO notes, focusing solely on long-dated paper.
The stop rate for the one-year OMO bills declined by 2 basis points to settle at 21.87%, according to auction results. In the secondary market, the average yield expanded by 2bps to 24.5% in the OMO bills segment due to selloffs.
On Tuesday, the Nigerian local currency recovered somewhat against the dominant US dollar in the foreign exchange (FX) market, closing at N1,594, according to statistics from the FMDQ website.
The naira declined by 0.31% in the parallel market, closing at₦1,610 per US dollar due to rising demand for invisible FX transfers. In its mid-year economic analysis, Coronation Research found that US dollar inflows into the autonomous FX market increased by 94.44% between the first half of 2023 and the same time in 2024.
The apex bank contribution was less than 9%, while non-bank corporate entities provided the largest contribution to the supply side, followed by foreign portfolio investors and exporters.
The exchange rate outlook remains dicey, with some analysts hoping to see the local currency strengthen with FX inflows and a sizeable net balance in external reserves.
Nigeria’s economic landscape reflects both challenges and opportunities. The nation’s gross domestic product grew by 3.19% in the second quarter of the year despite structural issues like inflationary pressures, currency depreciation, and low agricultural productivity.
However, the oil sector’s recovery, driven by reforms, offers optimism, Coronation Research said in its mid-year economic report recently published.
The firm said the exchange rate could stabilize within the N1,350–1,600 range, contingent on increased FX inflows from foreign portfolio investors and the expected US$2.3 billion World Bank loan.
The firm said the substantial public debt burden, now at N121.6 trillion, underscores the urgency of fiscal consolidation and strategic debt management to mitigate further currency and inflationary pressures.
“The evolving macroeconomic environment presents both risks and opportunities. The persistent inflationary pressures and exchange rate volatility are likely to exert upward pressure on interest rates, affecting borrowing costs and potentially slowing down credit growthh,” Coronation Research said in its report.
“The FX rate is expected to range between N1,450 and N1,600 per USD at both the official window and the parallel market over the three months.
“We see Naira stability in the near term partly due to CBN’s resumption of the retail Dutch auction system to mitigate FX demand pressure, increased FX injections from FPIs, and improved oil production,” the report said.
According to a Coronation Research analysis, the Nigerian independent foreign exchange market had an influx of USD 14.65 billion in the first half of 2024, up from USD 7.38 billion in the same period in 2023.
The breakdown revealed that the CBN accounted for 8.7% of the total, FPIs for 29.7%, non-bank corporates for 31.7%, exporters for 23.4%, and others for 6.5% of the inflows.
Crude oil prices dipped today, following a previous session increase caused by OPEC member Libya’s decision to suspend production and exports. Brent prices decreased 1.39% to $80.30, and WTI prices sank 1.58% to $76.18. The gold price likewise fell by 0.07% to $2,553.40 an ounce.
The Central Bank of Nigeria (CBN) has unveiled plans to sell N2.2 trillion in Treasury Bills (NTBs) in primary market auctions in the fourth quarter of 2024.
According to data from the Nigeria Treasury Bills (NTBs) issuance programme, this is a 41 percent quarter-on-quarter reduction from N1.56 trillion traded in the third quarter of 2024.
The apex bank’s primary market auction sales are expected to begin on September 4th and end on November 20th, 2024. During the period, the central bank will issue TBs worth N158.79 billion on a 91-day tenor, N109.61 billion on 182 days, and N1.94 trillion on 364 days.
A breakdown of the programme revealed that in September, the apex bank plans to sell N622.72 billion worth of NTBs, comprising N54.53 billion worth of 91 days bills, N41.05 billion worth of 182 days bills and N527.14 billion worth of 364 bills.
In October, the apex bank plans to sell N456.57 billion worth of NTBs, comprising N41.61 billion worth of 91 days bills, N34.66 billion worth of 182 days bills, and N380.3 billion worth of 364 days bills.
In November, the CBN plans to sell N1.12 trillion worth of NTBs, comprising N62.64 billion worth of 91 days bills, N33.9 billion worth of 182 days bills and N1.03 trillion worth of 384 days bills.
Demand for oil stocks has begun to rise on the Nigerian Exchange (NGX) trading platform, as significant companies such as TotalEnergies, Oando, and ETERNA continue to curb gains.
The oil market has remained reasonably stable, with crude oil prices oscillating between $70 and $80 per barrel on the global commodities market.
In the most recent rally, TotalEnergies’ price increased by 10%, the maximum permissible daily price movement on the Nigerian Exchange. Oando Plc had a 9.98% increase in market value, while Eternal rose by 9.96%.
Ticker: TOTAL climbed from N563 per share to N619.3 in the equities market on Tuesday as a result of heavy buying interest. The stock has gained 21% since the beginning of the week, up from N511.90 on Friday close to N619.30 on Tuesday.
Ticker: ETERNA trended higher, up by 9.96% to close the day at N25.4 per share in the domestic exchange, from N23.1 yesterday. Eterna has seen about 21% gain in the market this week.
Its share price started at N21 and has grown to N25.1 over two days in the local market due to solid demand for oil stocks. Eterna market value has inched to N33.125 billion.
Ticker: OANDO surged to N57.85 per share on the Nigerian Exchange on Tuesday. The company has been making uptrend as its acquisition taste attract investors to the oil stock. The company’s 12.431 billion shares outstanding has been valued upward by 9.98% to N719 billion on the Nigerian Exchange.
Oil and Gas index gained 4.14% on the Nigerian Exchange on Tuesday due to Oando, Total, and Eterna Plc positive price appreciation.
Nigerian National Petroleum Company Limited (NNPC Ltd.) has started shipping liquefied natural gas (LNG) cargoes to Japan and China on a delivered-ex-shipment (DES) basis.
Mr Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd., quoted Mr Segun Dapo, Executive President, Downstream, NNPC Ltd., in a statement issued in Abuja on Monday.
Dapo was reported as noting that the development was consistent with the company’s strategic aim of being a dependable global energy supplier. “Apart from being more financially rewarding, the DES system allowed NNPC Ltd. to inroad into the downstream segment of the LNG sector,” he said.
The News Agency reports that Delivered Ex-Ship (DES) is an international commercial term that requires the seller to deliver the products/goods at a specific port.
The seller is responsible for the shipping and insurance of the products and goods until they reach the stated port of delivery. Execution demands more knowledge and efficiency than the Free on Board (FOB) approach.
Soneye further reported Dapo as saying that NNPC Ltd. reached the milestone in partnership with two downstream businesses.
He listed two subsidiaries: NNPC LNG Ltd and NNPC Shipping Ltd. The first DES LNG cargo was delivered on June 27, 2024, from the 174,000-m³ LNG tanker Grazyna Gesicka in Futtsu, Japan.
“Since then, it has expanded its footprint to China with the delivery of one LNG cargo on DES basis.
“NNPC Ltd. has been involved in LNG trading since 2021, with its first LNG cargo sale in November of that year. It has since traded over 20 cargoes into the European and Asian markets on FOB basis.
“It will position NNPC Ltd. to capture more market shares while building in-house capacity and ensuring that global customers are familiar with the NNPC Ltd brand,” he said.
According to Dapo, the collaboration between NNPC LNG Ltd. and NNPC Shipping Ltd. in executing the LNG supplies on DES basis has strengthened the latter’s position as a world-class shipping provider in the LNG sector.
The Managing Director of NNPC Shipping, Mr Panos Gliatis, was also quoted as saying that NNPC Shipping intended to build a shipping portfolio (including owned vessels) to provide the sister company and other clients all the shipping flexibilities they needed.
NNPC LNG Ltd., in collaboration with NNPC Shipping Ltd., is scheduled to deliver at least two more LNG cargoes to the Asian market on DES basis by November. More orders are expected before the end of year.
Money market rates fell further on Monday, as the financial system’s liquidity remained high. The liquidity level was increased by a torrent of inflows into the financial system, including over N900 billion in FAAC credits, coupon payments on FGN borrowing instruments, and others.
Because there was no major pressure on liquidity levels, short-term benchmark interest fell further as the Central Bank of Nigeria (CBN) announced plans to ease restrictions on the standing lending facility window.
The Apex Bank announced that it has authorized authorised dealers, banks, and other qualified players to access funds from its standing lending facility at 31.75% as a result of the monetary policy committee’s modification to the upper corridor of standing facilities.
“The suspension of standing lending facility is hereby lifted and authorised dealers should send their requests for SLF through Securities Settlement System within the opening hours of 5.00pm to 6.30pm”, the CBN said in a notice.
The Nigerian interbank offered rate (NIBOR) rates continued to decline across tenors in the money market, reflecting sufficient system liquidity, Cowry Asset Limited said in its market update.
The investment firm said the overnight NIBOR notably dropped by 263 basis points to 23.33% on Monday, as banks with excess liquidity sought lower borrowing rates.
Key money market rates such as the open repo rate (OPR) and overnight lending rate (O/N) decreased by 81bps and 67bps to close at24.97% and 25.50%, respectively due to ample system liquidity.
“We anticipate that interbank rates will rise tomorrow, depending on the outcome of today’s OMO bills primary market auction”, AIICO Capital Limited said.
The average yield on Nigerian government bonds fell further in the secondary market as investors increased their holdings of naira assets following a strong economic growth rate in the second quarter of 2024.
Disinflation and economic growth generated good signals to bondholders, resulting in buying sentiment at the short, belly, and longer maturity levels.
The Debt Management Office (DMO) has strategically decreased bond supply from N300 billion at monthly primary market auctions to N190 billion in lot sizes. According to the results of its main market auction, the debt agency sold more bonds than it offered in August, which was unexpected.
Based on the latest pattern in the debt market, investors are aligning their portfolio structures to include bonds with longer maturities due to the expectation of tight supply.
The bond market rallied despite the ongoing US dollar domestic bond offering with a 5-year maturity priced at 9.75%. Analysts predict that banks and institutional investors, including high-net-worth individuals, will have the financial muscle to bid for the bond due to the weak exchange rate.
Yield contractions were seen at the short (-3 bps) and mid (-16 bps) segments of the curve, resulting in a 7 bps decline in the average yield to 19.55%, according to CardinalStone Partners Limited.
The market saw buying interests in the FEB-2031 bond, causing its yield to slump by 57 bps. Also, the May-2033 FGN bond was in demand, and its yield plunged by 54 basis points, while demand for JUL-2030 instruments dragged its yield lower by -39 basis points.
Equity investors on the Nigerian Exchange (NGX) reported roughly N37 billion in capital appreciation or gain in the local bourse due to buying interest in Eternal, Oando, and others.
Following a poor performance last week, the Nigerian bourse opened trading activity for the new week in the green, with performance indicators up 0.07%.
The stock market’s year-to-date return increased as the All-Share Index added 63.83 basis points to settle at 96,037.28 points, according to Broadstreet statistics.
The market saw increased investor buying appetite across major market sectors, particularly in consumer goods and insurance, which surged by +1.83% and +1.05%, respectively.
According to trading update, market activities ended on a mixed note on Monday. Total volume traded increased by +19.32%, while the total value traded reduced by 15.73%.
In its market update, Atlass Portfolios Limited said approximately 390.51 million units valued at ₦3,884.30 million were transacted across 9,242 deals.
VERITASKAP was the most traded stock in terms of volume, accounting for 17.23% of the total volume of trades, followed by JAPAULGOLD (6.13%), FCMB (5.25%), PRESTIGE (5.18%), and CHAMS (4.69%) to complete the top 5 on the volume chart.
ZENITHBANK emerged as the most traded stock in value terms, accounting for 12.97% of the total value traded on the domestic exchange at the beginning of the week.
ETERNA topped the advancers’ chart with a price appreciation of 10.00 percent, trailed by OKOMUOIL which gained +9.99%. Other gainers include RTBRISCOE (+9.96%), OANDO (+9.93%), JAPAULGOLD (+9.73%), VERITASKAP (+9.52%), and twenty-two others.
On the bearish side, eighteen stocks depreciated, according to stockbrokers. TRANSPOWER was the top loser, with a price depreciation of -9.99%. Other losers include UCAP (-8.35%), UNILEVER (-5.26%), ACCESSCORP (-4.76%), LIVESTOCK (-2.22%), and TRANSCORP (-1.67%).
Given the trading direction, the market breadth closed positive, recording 28 gainers and 18 losers.
Sectorial performance was healthy as the Consumer Goods index (+1.83%) recorded the highest gain, driven by price appreciation in BUAFOODS (+5.73%).
This was trailed by the Insurance (+1.05%), Oil and Gas (+0.73%), and Industrial Goods (+0.01%) indices owing to the upturn in VERITASKAP (+9.52%), OANDO (+9.93%) and CUTIX (+3.23%), respectively.
Conversely, the Banking (-0.41%) index closed negative, following selloffs in ACCESSCORP (-4.76%). Overall, the equities market capitalisation of the Nigerian Exchange rose by ₦36.67 billion to close at ₦55.17 trillion.
President Bola Tinubu has named Ambassador Mohammed Mohammed the new Director-General of the National Intelligence Agency, and Adeola Ajayi the new Director-General of the Department of State Services.
Ajuri Ngelale, Special Adviser to the President on Media and Publicity, confirmed this in a statement issued on Monday in Abuja, the nation’s capital. According to the statement, the nominations come after the previous leaders of the two agencies resigned.
Mohammed, a seasoned foreign service officer, has had a remarkable career spanning two decades, working in numerous roles and nations such as North Korea, Pakistan, Sudan, and Libya, according to Ngelale’s statement.
Similarly, Ajayi, the new DSS chief, was said to have risen through the ranks, serving as State Director in several states, including Bauchi, Enugu, Bayelsa, Rivers, and Kogi.
Mohammed succeeded Ahmed Abubakar, who resigned from his position as the NIA Director-General on Saturday night, citing family and personal reasons for his resignation.
Abubakar was first appointed DG of the NIA in 2018 by former President Muhammadu Buhari, who extended his stay in office in December 2021, while Bichi was also appointed DSS DG in 2018 by Buhari.
The statement added, “President Tinubu has charged the new security chiefs to work together to reposition the agencies for better results, tackle security challenges, and enhance collaboration with sister agencies and the Office of the National Security Adviser.
“The President has also thanked the outgoing Directors-General for their service to the nation and wished them success in their future endeavours.”
The naira fell by roughly 1.7% at the start of the week, as demand and supply patterns indicate that the FX liquidity crisis in local currency markets has not improved.
Despite the Central Bank of Nigeria’s (CBN) efforts to increase US dollar volume in the foreign exchange market, the naira has remained severely under pressure. Analysts, however, predicted that the local currency would continue to suffer in the absence of explicit FX sales instructions to stimulate supply.
The naira fell by 1.69% against the US dollar to settle at ₦1,596.60, as reported by the FMDQ Securities Exchange platform for daily FX spot prices quotations.
The exchange rate direction suggests that the US dollar volume demanded by FX users overwhelmed the supply side, causing the local currency to be priced lower at the Nigerian autonomous foreign exchange market.
The naira needs to be defended as an import nation, analysts said, noting that other big economy like Japan has been boosting the currency against the dominant US dollar.
Meanwhile, gross external reserves continue to reduce after flurry of FX inflows lifted the balance to 18-month high early in August 2024. Nigeria’s foreign reserves dropped to $36.437 billion, and analysts said significant part of the amount has been pledged by government, and its agency for various deals.
The weak external reserves net position makes it difficult for the current CBN leadership to support the naira with constant FX sales interventions to boost the supply side.
Last week, the CBN said remittance flow through the official window hit a historic high of $553.0m in July. Based on the assessment of CBN’s historical data, the July remittance print is the highest inflow through the official channel in 11 months and represents a 130.0% year on year surge over the corresponding period in 2023.
In the parallel market, the naira depreciated by 0.31% to close at ₦1,605 per US dollar as invisible payment remain elevated, supported by Nigerians imports tastes.
After bearish performance, oil prices gained today amid reports of a production halt in Libya and after Israel and Hezbollah traded a barrage of strikes across the Lebanon border.
Brent prices rose by 2.75% to $81.19 and WTI prices increased by 3.01% to $77.08. Gold prices increased by 0.11% to $2,549.10 per ounce.
In today’s digital age, a strong online presence is essential for businesses of all sizes. Search engine optimization (SEO) plays a crucial role in ensuring your website is easily discoverable by potential customers.
Conducting a regular SEO audit is a proactive step to identify and address any issues that may be hindering your website’s performance. Here’s a step-by-step guide on how to conduct an SEO audit for your website:
1. Keyword Research
Identify your target audience. Understand who you are trying to reach and what their needs and interests are.
Determine relevant keywords: Use keyword research tools like Google Keyword Planner, SEMrush, or Ahrefs to find keywords that your target audience is searching for.
Analyze keyword competition: Assess the level of competition for each keyword to prioritize your efforts.
2. On-Page SEO
Optimize title tags and meta descriptions: Ensure these elements are relevant, informative, and include your target keywords.
Improve header tags: Use H1, H2, H3, etc., to structure your content and make it easier to read.
Optimize image alt text: Add descriptive alt text to your images to improve accessibility and SEO.
Check for duplicate content: Ensure your website doesn’t have duplicate content that can confuse search engines.
Optimize URL structure: Create clean, descriptive URLs that include relevant keywords.
3. Technical SEO
Check website speed: Use tools like Google PageSpeed Insights to measure your website’s loading speed and identify areas for improvement.
Optimize mobile responsiveness: Ensure your website is fully functional and easy to navigate on mobile devices.
Fix broken links: Use tools like Broken Link Checker to identify and fix broken links on your website.
Create an XML sitemap. Submit your sitemap to search engines to help them crawl and index your website’s content.
Optimize robots.txt: Use this file to instruct search engines which pages to crawl and which to avoid.
4. Content Quality and Relevance
Create high-quality content. Produce valuable, informative, and engaging content that meets the needs of your target audience.
Optimize content for keywords: Incorporate your target keywords naturally throughout your content.
Update old content: Regularly refresh your older content to keep it relevant and up-to-date.
5. Backlinks
Build high-quality backlinks: Acquire links from reputable websites in your industry to improve your website’s authority.
Monitor your backlink profile. Use tools like Ahrefs or Moz to track your backlinks and disavow any low-quality or spammy links.
6. User Experience (UX)
Improve website navigation: Make it easy for users to find what they are looking for.
Optimize mobile UX: Ensure your website is user-friendly on mobile devices.
Reduce bounce rate: Keep users engaged on your website by providing valuable content and a positive user experience.
7. Local SEO (if applicable)
Claim and optimize your Google My Business listing. Provide accurate and up-to-date information about your business.
Encourage online reviews: Positive reviews can boost your local search rankings.
Target local keywords: Use keywords that include your city or region.
8. Analytics and Tracking
Set up Google Analytics: Track your website’s traffic, user behavior, and conversion rates.
Monitor key performance indicators (KPIs): Track metrics like organic traffic, keyword rankings, and conversion rates.
Analyze data to make informed decisions. Use the data you gather to identify areas for improvement and optimize your SEO strategy.
By following these steps and conducting regular SEO audits, you can improve your website’s visibility in search engine results and attract more organic traffic. Remember, SEO is an ongoing process, so it’s important to continuously monitor your website’s performance and make adjustments as needed.
According to National Bureau of Statistics (NBS) data released today, Nigeria’s Human Health and Social Services sector saw 2.41% year-on-year real GDP growth in the second quarter of 2024.
This statistic is slightly better than the 1.95% growth reported in the same quarter of 2023, representing a 0.46 percentage point increase.
Quarter-on-Quarter growth
The sector demonstrated robust quarter-on-quarter growth, expanding by 3.96% in real terms. This substantial increase indicates accelerating momentum in the health sector’s development compared to the previous quarter.
Q2 2024’s growth outpaced the previous quarter’s performance by 0.29 percentage points, suggesting a positive trend in the sector’s real output.
Despite the growth, the sector’s contribution to real GDP stood at 0.75% in Q2 2024. This figure is lower than that recorded in Q2 2023 but shows an improvement from the 0.72% contribution in Q1 2024.
Contribution to overall GDP
Despite the sector’s robust growth, its contribution to Nigeria’s overall real GDP in Q2 2024 stood at 0.75%. While this represents a slight improvement from the 0.72% contribution recorded in Q1 2024, it is still lower than the 0.77% contribution observed in Q2 2023.
The modest contribution signifies the need for continued investment in the health sector to enhance its economic impact and ensure that it can meet the country’s healthcare demands effectively.
The accelerating real GDP growth suggests genuine expansion in the health sector’s output, potentially indicating increased service provision, improved healthcare access, or enhanced efficiency in the sector.
However, the relatively small contribution to overall GDP highlights the need for continued focus on and investment in healthcare to boost its economic impact.
The Federal Government’s recent moves to strengthen Nigeria’s health sector align with broader efforts to boost local drug production in a new partnership between the Presidential Initiative for Unlocking the Healthcare Value Chain and the US Pharmacopeial Convention (USP) to increase its local pharmaceutical production
The agreement focuses on enhancing local drug production and regulatory oversight, with an ambitious target of achieving 70% local production and creating 30,000 new jobs by 2030.
The Federal Government issued an Executive Order to eliminate import, VAT, and excise charges on pharmaceutical raw materials, intermediate products, and medical diagnostic equipment and apparatus.
Dr. Muda Yusuf, CPPE’s Director/CEO, stated that this move is likely to lower medicine costs, create jobs, and considerably improve residents’ well-being.
Additionally, the government signed a Memorandum of Understanding with Global Gases Group to develop liquefied medical oxygen production units in Nigeria.
The Minister of Health and Social Welfare, Prof. Muhammad Ali Pate, announced that new gas plants, each capable of producing 100 tons of oxygen per day, will be established across northern and southern Nigeria.
He emphasized that this initiative aligns with the Nigeria Health Sector Renewal Investment Initiative and President Tinubu’s Executive Orders aimed at unlocking the health sector value chain.
During the second quarter of 2024, Nigeria’s GDP increased by 3.19% in real terms over the previous year. The GDP growth rate has surpassed the 2.51% recorded in the second quarter of 2023 and the 2.98% growth experienced in the first quarter of 2024.
The Services sector drove the GDP performance in Q2 2024, growing by 3.79% and accounting for 58.76% of total GDP. The agriculture sector grew by 1.41%, somewhat lower than the 1.50% growth registered in Q2 2023.
The industry sector improved greatly, growing by 3.53% compared to the -1.94% decline seen in the second quarter of 2023. In terms of GDP share, the industry and services sectors contributed more to the overall GDP in the second quarter of 2024 compared to the same period in 2023.
Oil sector
The oil sector contributed 5.70% to the total real GDP in Q2 2024, an increase from the 5.34% recorded in the same period of 2023, but a decrease from the 6.38% contribution in the preceding quarter.
The oil sector experienced a real growth of 10.15% year-on-year in Q2 2024, marking a significant increase of 23.58 percentage points compared to the -13.43% recorded in the same quarter of 2023.
This growth also represents a 4.45 percentage point rise from the 5.70% recorded in Q1 2024.
However, on a quarter-on-quarter basis, the oil sector saw a decline, with a growth rate of -10.51% in Q2 2024.
Nigeria recorded an average daily oil production of 1.41 million barrels per day (mbpd), in Q2, 2024 which is 0.19 mbpd higher than the average 1.22 mbpd recorded in the same quarter of 2023.
However, this figure is 0.16 mbpd lower than the 1.57 mbpd produced in the first quarter of 2024.
Non-oil sector
The non-oil sector contributed 94.30% in real terms to the nation’s GDP in the second quarter of 2024.
This is slightly lower than the 94.66% share recorded in the second quarter of 2023 but higher than the 93.62% contribution in the first quarter of 2024.
The non-oil sector grew by 2.80% in real terms during Q2 2024.
This growth rate was 0.78 percentage points lower than the 3.58% recorded in the same quarter of 2023, and it matched the 2.80% growth seen in the first quarter of 2024.
The sector’s performance in Q2 2024 was primarily driven by Financial and Insurance (Financial Institutions), Information and Communication (Telecommunications), Agriculture (Crop Production), Trade, and Manufacturing (Food, Beverage, and Tobacco), all of which contributed to positive GDP growth.
The foreign exchange turnover at the official trading window for the Nigerian currency in July was N11.48 trillion ($7.39 billion), up from N10.01 trillion the previous month. The FMDQ, which operates the official foreign exchange trading platform, announced this in its July financial markets monthly report.
In dollar terms, FX market turnover in July increased by 10.02 percent ($0.67 billion) month on month from $6.72 billion the previous month. The naira also fell against the dollar, with the spot exchange rate rising by 4.88 percent (N72.58) to settle at an average of $1,560.32 in July, up from $1,487.74 in June.
The exchange rate volatility also increased in July as the local traded around $/1,500.32– $/1,621.12, compared to $/1,473.66– $/1,510.10 recorded in June 2024.
At the end of the week, the value of the Naira to the dollar appreciated by 62bps to N1570.14/$ to close the week at the NAFEM. The turnover stood at $120.81m with an intra-day high and low of 1606/$ and 1496/$ respectively.
FX turnover is the sum value of all transactions performed in the foreign exchange market in January, reflecting increased trading activities in the forex market in the period under review.
A recent report from the Central Bank of Nigeria indicated that the average exchange rate of the naira against the dollar at the Nigerian Autonomous Foreign Exchange Market fell by 35.53 per cent to $/1,304.72 in the first quarter of 2024, compared to $/841.15 in the last quarter of 2023.
Businesses profiled in the survey say they expect the naira to continue to depreciate in the next three months, beginning in July, but would begin appreciation after six months.
The report said, “Respondent firms expect the naira to depreciate in the current month, next month and next three months but appreciate in the next six months as their indices stood at -22.6 points, -16.5 points, -4.8 points and 13.7 points, respectively.
“They expect the borrowing rate to rise as the confidence indices stood at 15.0, 14.3, 18.3 and 17.4 points, in all the review periods, respectively. At the same time, their perception of inflation indicated that they consider the current inflation rate of 34.19 per cent too high. At 72.8 points, this sentiment was strongest amongst large firms.”
Additionally, the CBN has announced a surge in remittance inflows, reaching $553m in July 2024, a 130.00 per cent year-on-year increase compared to July 2023.
The apex bank said that the growth was largely driven by recent policy initiatives aimed at boosting liquidity in Nigeria’s foreign exchange market, including the issuance of licenses to new international money transfer operators and the adoption of a willing buyer-willing seller model, which ensures IMTOs have timely access to naira liquidity.
Analysts at Meristem Research shared an optimistic outlook that remittance inflows would “continue their upward trajectory, supported by these policies and additional strategic efforts to enhance stability in the FX market.”.
Bitcoin rose by more than 8.7% in seven trading sessions as US Fed rate cuts were expected to lessen recession fears among ordinary investors. Ethereum also increased by approximately 4.5% during the same time frame.
The majority of the top ten crypto currencies witnessed solid weekly gains, with the exception of TON Coin, which lost almost 17.5% over the same period as the others rose.
Data from crypto exchanges revealed that the world’s largest digital currency asset fell 0.08%, or 8 basis points, in the last 24 hours in the market.
According to data, the worldwide cryptocurrency market capitalization reached $2.24 trillion on Monday, representing a 0.24% fall over the previous day. The volume traded in the crypto market during the last 24 hours has also reached $50.6 billion, making a 15.46% decrease.
According to Coinmarketcap.com, the total volume in DeFi is currently $3.14 billion, accounting for 6.21% of the total crypto market 24-hour volume traded.
Setting the tone for market direction in the new week, the volume of all stable coins is now $46.28 billion, which is 91.47% of the total crypto market 24-hour volume.
Last week, most major digital assets advanced Friday with bitcoin (BTC-USD) soaring beyond the $63,000 level.
The CoinDesk Market Index, which tracks 134 digital assets, climbed 5.3% in the past 24 hours. The Nasdaq 100, S&P 500 and Dow Jones Industrial Average all were up over 1%.
Bitcoin (BTC-USD) surged 5.6% to $63,797 with a 24-hour trading volume of $36.8 billion, up nearly 18%, according to CoinMarketCap data.
The most popular cryptocurrency was on track to log a weekly gain of nearly 7%.
Ethereum (ETH-USD), the second-largest digital asset, was 5.2% higher at $2,744 and set for a weekly rise of over 4%.
BNB (BNB-USD), the third-largest digital asset by market value excluding stablecoins, edged up 0.4%, while Solana (SOL-USD), the fourth-largest, rose 4.8%.
XRP (XRP-USD) gained 1.3%, Dogecoin (DOGE-USD) surged 7.8% and Cardano (ADA-USD) jumped 5%. The US 10-year Treasury yield closed at 3.805%, down from Thursday’s close of 3.86%, while the five-year yield closed at 3.649%, down from 3.724%.
The Central Bank of Nigeria (CBN) rejected 71% of offers and slashed spot rates on Treasury bills during the primary market auction (PMA), as investors bet heavily on naira assets.
The auction, which was organized by the debt office, saw investors place big bets on the Nigerian Treasury bill due to the elevated yield on naira assets, according to the auction data. Investors looking to invest in one-year Treasury bills were disappointed when the authority sold less than the amount available at the primary market auction last week.
In addition, the primary market spot rate price was adjusted as a result of the Debt Management Office’s (DMO) initiatives to minimize debt servicing costs. The latest data from DMO on total debt showed that Treasury bills accounted for 17% of the entire domestic borrowing, while FGN contributed 78.6%. In its market update, AIICO Capital Limited said before Wednesday’s primary auction, the Treasury bills market was mixed.
However, after the auction, the market trended bullish, with significant unmet bids at the auction seeking several mid- and long-dated papers in the secondary market. The DMO, on behalf of the Central Bank of Nigeria (CBN), held the Treasury Bills (T-Bills) Primary Market Auction (PMA) last week.
At the auction, Nigerian Treasury bill worth N409.98 billion was offered to investors across standing maturities, split as N60.69 billion, N66.25 billion and NGN283.04 billion across the 91-day, 182-day, and 364-day for refinancing.
The auction results showed strong investor interest in the 1-year paper, with about 88.57% subscription on the 364-Day paper. In the end, the DMO allotted ₦291.03 billion, despite offering ₦409.98 billion, causing investors to fill lost bids at the secondary market.
Total subscription printed at about ₦1.03 trillion, of which 71% was rejected by the authority as it seeks to cutback supply. The stop rates for the 91-Day declined by 10 basis points to 18.20%. At the mid belly, the spot rate on 182-Day also dell by 10 basis points to 19.20%.
One year bills was priced lower again at 20.90%, down by 99 basis points from the previous auction. At the previous auction, the CBN offered N216.09 billion across three instruments, marking a reduction from the N277.96 billion offered in the previous auction.
Strong system liquidity, which stood at N469.99 billion, fueled substantial investor demand, with total subscriptions reaching 2.25x the offered amount, a significant increase from the 1.35x recorded at the prior auction, Meristem Securities said in a note.
In nominal terms, total subscriptions surged to N486.87 billion, up from N373.95 billion at the previous auction. Analysts said the 364-day instrument is attracting the lion’s share at 88.64% of total bids. The average bid-to-cover ratio also improved significantly to 2.25x, reflecting both robust liquidity and heightened investor appetite across all three instruments.
Despite this strong demand, the CBN maintained the allotment at the offered amount of N216.09 billion, resulting in an allotment-to-offer ratio of 1.00x. Due to the high demand, yields on the 91-day and 182-day instruments remained constant, while the yield on the 364-day instrument declined by 21 basis points to 21.89%, in line with expectations of easing borrowing costs.
Afrinvest Limited, a renowned investment banking firm, has reported that Nigeria’s yield curve inverted in the secondary market following auctions and buying interest last week.
Last week, local bond papers surged as disinflation bolstered investors’ optimism about the economy’s outlook, resulting in a rise in secondary market buying interest.
Last week, the primary market saw an unexpected sale of ₦374.749 billion in FGN bonds, despite a lower offer size of ₦190.00 billion from ₦300.00 billion.
At the primary market auction, the Debt Management Office (DMO) reopened naira-denominated bond instruments for three tenors: FGN APR 2029, FGN FEB 2031, and FGN MAY 2033.
The auction drew tremendous interest from investors who placed large wagers on the naira asset, pushing the FGN component of domestic borrowing higher.
In the first quarter of 2024, FGN bonds accounted for 78.6% of domestic borrowing. The overall subscription was at ₦460.18 billion, with a bid-to-cover ratio of 1.23x. Stop rates revealed variable results. The stop rate for the 2029 paper with a lower bid-to-offer ratio ended at 20.30%, according to DMO primary market auction results.
Meanwhile, the stop rates for the 2031 and 2033 FGN bond papers closed lower, at 20.90% (down 10bps) and 21.50% (down 48bps), respectively.
Explaining further analysts said the marginal rate on the longest tenor decreased by 48bps to 21.5%, the rate on the mid-tenor eased 10bps to 20.9%, while weak sentiment on the short end drove the marginal rate up by 41bps to 20.3%.
In the secondary market, trading activities were mixed-to-bullish for the week. Investors demand for bond increased due to improved liquidity in the financial system, supported by FAAC and bond coupon inflows.
The auction details showed that total subscription was spurred by the 7.5x oversubscription on the longest tenor with N50 billion.
Meanwhile, demand was weak on short and mid-dated instruments with bid-to-offer rates of 0.35x and 0.87x respectively for the N70.0 billion offered on each tenor.
In the secondary market segment, average yield across the curve moderated by 6bps week on week to 19.5%, driven by buy interest at the head and the belly of the curve, Afrinvest said in its market note.
The head, demand for debt paper caused yield to decline by 13bps week on week and buying interest at the belly of the curve dragged yield down by 10bps.
“We flagged that the domestic secondary market yield curve is currently inverted, given the relatively higher yield on short-date papers at average of 20.6%, as compared to the mid and long-tenor instruments with average yields of 20.2% and 18.4% sequentially”, Afrinvest told investors in a report.
The Nigerian naira performed mixedly in the foreign exchange market, with dropping external reserves and a weekly decline in US dollar volume. The exchange rate improved little in the official foreign exchange market but declined in the informal currency market.
Data revealed that gross foreign reserves continued to fall despite a string of sequential inflows that brought the balance to an 18-month high. According to data from the Central Bank of Nigeria’s (CBN) website, the country’s gross external reserves fell for the third week in a row.
The balance of external reserves fell by US$63.50 million week-on-week to US$36.44 billion, according to CBN platform statistics. Last week, the naira achieved its highest single-day appreciation of 3.1% on Wednesday, the best daily performance seen last on July 22, when it gained 6.4%, before closing the week at N1570.14 at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
This showed that the local currency appreciated against the US dollar by 0.62% week-on-week, reaching ₦1,570.14 as demand for foreign currency in the economy by market actors.
Citing market data, investment banking firm Afrinvest Limited noted that activity level in the NAFEM window waned, as total turnover fell 29.8% week on week to $811.6 million. Cordros Capital Limited said trades were consummated at the window within the N1,470.00–NN1,603 band. In the forwards market, the naira rates depreciated across the 1-month and 6-month contracts but appreciated across the 3-month and 1-year contracts.
One month forward contract depreciated by 0.5% to N1,623.59 per US dollar. Also, Six months forward contract depreciated by 1.6% to N1,782.42 per greenback. However, Three months forward contract appreciated by 0.4% to N1,681.93, while one year contract rose by 1.6% to N1,972:27 per US dollar.
Despite the CBN’s FX retail auction, analysts highlight persistent demand pressures causing the naira to trade with high volatility during the week. “In the near term, we anticipate the naira will remain pressured owing to weak supply,” Cordros Capital Limited said.
Overall, exchange rate had a mixed performance against the dollar. Specifically, the Naira gained 0.6% against the US dollar to close at N1,570.14 in the official market. However, the local currency depreciated by 1.2% to close at N1,605.00/$1.00 in the parallel market.
The rates direction has widened FX gap to N35 on each US dollar, increasing risk of currency speculation.
In the global commodities market, crude oil prices declined this week due to a weakness in global demand. Overall, Brent oil decreased by 0.90% to $78.96 per barrel, while WTI declined by 2.43% to $74.79 per barrel. The price of gold increased by 0.40% to $2,547.90 per ounce.
A Federal High Court in Abuja has frozen the bank accounts of 32 individuals and companies’ linked to the 10-day #EndBadGovernance Protest organised across the country pending investigation and prosecution of the case.
Justice Emeka Nwite, in a ruling on the ex-parte motion moved by counsel for the Inspector-General (I-G) of Police, Ibrahim Mohammed, also ordered the banks to apprehend the account holders or any person transacting business on the said accounts.
Justice Nwite, who granted the motion dated and filed on Aug. 20, directed the banks to contact the Nigeria Police Force through the telephone numbers: 08035179870 and 07032449912 as soon as arrest is made.
“That the banks are hereby directed by this honourable court to issue details of the account package(s) and to place a Post-No-Debit (PND) on the accounts, disable the ATM while allowing inflow into the said accounts as from the date of this court order,” the judge declared.
Though the ruling was made on Thursday, the certified true copy of the order was sighted on Sunday in Abuja.
The account numbers affected include 4010073491 (Fidelity Bank), 1255130019 (Access Bank), 0006084167 (Abbey Mortgage Multipurpose Bank Plc), 0821931299 (FCMB), 1012007655 (FCMB), 0000575573 (A AG Mortgage Bank Plc), 1007871587 (UBA), 2037117333 (UBA), 5421031104 (ECOBANK ) and 0024541201 (Union Bank).
Others are 1022899050 (UBA), 8755008491 (Branch International Services Ltd), 5630208636 (Fidelity), 4936992542 (Fairmoney Microfinance Bank).
Others are 8755008499 (Branch International Financial Services Ltd), 2088228208 (UBA), 2115678044 (Zenith Bank), 3041823452 (First Bank), 1011828445 (New Edge Finance), 3024402748 (Fusrt Bank), 0161502459 (GTBank) and 0040580047 (Access Bank),
They also include 0250291788 (Wema Bank), 6112464260 (Branch International Financial Services Ltd), 1000774097 (Sparkle Microfinance Bank Ltd), 3434649965 (Fairmoney Microfinance Bank), 2013556714 (KUDA Microfinance Bank), 3104962864 (Polaris Bank), 6112464267 (Branch International Finance Services Lit), 8137051249 (OPAY) and 8137051249 (PALMPAY).
The I-G, in the application marked: FHC/ABJ/CS/1219/2024, had listed PA.LIN.HO Global Service Ltd, Innocent Angel Lovet Chinyere Nkiru, Obidient Movement Multipurpose Cooperative Society, Innocent Angel Lovet, Great Communicators Champion Multipurpose Cooperative Society Ltd as 1st to 5th respondents respectively
Others include Great Communicators Champion Multipurpose Cooperative Society Ltd, Opaluwa Eleojo Bob-Simon, NUEE State Chapter, Adeyemi Abiodun Abayomi, Adaramoye Michael Tobiloba, Popoola Festus as 6th to 11th respondents respectively.
Mohammed, in his four-ground argument, said the accounts as contained in the schedule in respect of which reliefs sought are subject of investigation and are reasonably suspected to be warehousing proceeds of unlawful activities or fraud.
“If there is any dealing with the account by way of withdrawal or transfer to another account by the persons under investigation/investigator and the persons that have absolute power to deal with the account will render nugatory any consequential order(s) which the court may make at the conclusion of this application,” he said.
According to him, the accounts are used to promote the offence of criminal conspiracy, terrorism financing, treasonable felony, cyberbullying and cyberstalking which was illegally transferred to the account of the accused persons now at large.
“That the accused persons were involved in hosting another country’s flag in order to undermine the sovereignty of Nigerian state,” he added.
In the affidavit in support of the motion ex-parte, Gregory Woji, a detective attached to Force Criminal Investigation Department, deposed that preliminary investigation revealed that some suspects arrested were being recruited by some financiers to cause mayhem and destroyed life and property,
Woji said preliminary investigation further revealed that the financiers were sending money to recruit the indigents and other vulnerable individuals to carry banners and overthrow a democratically elected government.
According to him, preliminary investigation further reveals that some foreign nationals were the harrow head in the unscrupulous act of treasonable felony and promoting terrorism financing in Nigeria.
He said the acts of the accused persons are akin to the offenses of criminal conspiracy, terrorism financing, treasonable felony, cyberstalking, and cyberbullying. He said it is the function of the police to stop this act by apprehending the offenders, as an offense to one is an offence to all.
According to Woji, intelligent report gathered so far reveals that the suspects are making effort to transfer or withdraw money from the accounts and unless this honourable court grants this order, otherwise, the investigation will be jeopardise.
“That it will be in the interest of justice to grant this request by freezing the account of the said suspects and order their immediate arrest on sighting them pending the outcome of the investigation and possible prosecution,” he averred
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