The average yield on Nigerian Treasury bills rose in the secondary market as investors sold naira assets at a time when the Central Bank of Nigeria (CBN) cut the spot rate on one-year bills.
The treasury bill market began the week with a gloomy outlook. During the week, the Debt Management Office (DMO) offered roughly ₦216.09 billion on behalf of the monetary authority to control liquidity.
Investors placed offers worth 2.25 times the amount provided. In the secondary market, the sell-off continued ahead of inflation data expectations. Broadstreet analysts agree that the consumer price index will begin to fall after the July data, citing base effects.
Despite the elevated yield on borrowing instruments, investors in the fixed income market are still looking for catalysts to drive yield repricing. While Nigeria’s yield is high, investors’ money is nevertheless subject to inflationary pressure, earning negative interest on naira assets.
Following Treasury bill selloffs in the secondary market last week, the average yield across all instruments increased by 51 basis points to 25.9%, according to analysts’ separate notes.
Following two failed main market auctions, the average yield jumped to 25.8% in the NTB segment and 87 basis points to 26.1% in the OMO segment. According to the Nigerian Treasury bills auction results, the DMO offered N216.09 billion. The offer was split into conventional maturities.
DMO offered N16.59 billion worth of 91-day Treasury bills to investors, a total of N51.35 billion worth of 182-day and N148.15 billion for the 364-day bills were also offered to investors. Demand at the auction settled at N486.87 billion as against N373.95 billion at the previous auction, which was 2.25times total offering.
The auction closed with the DMO allotting exactly what was offered at respective stop rates of 18.50% for 91-day Treasury bills. The spot rate for 192-day bill was 19.50%. Both rates were unchanged from the previous auction.
However, spot rates for one-year Treasury bills were reduced to 21.89% from the 22.10% clearing rate at the previous auction.
Nigeria’s overseas payments climbed by roughly 31% between January and May 2024, despite the country’s weak foreign exchange liquidity, according to Central Bank data. The nation’s foreign payments are projected to quicken in the coming months as a result of the government’s intention to increase food imports to supplement domestic output.
Some experts argued that the apex bank’s willing buyer and willing seller FX policy would have a negative impact on the local currency due to the economy’s reliance on imported goods.
To effectively channel foreign currency resources to appropriate sectors, the Central Bank of Nigeria has begun selling US dollars to FX users as it restarts the retail Dutch Auction system that it had abandoned.
The monetary authority’s efforts to boost foreign exchange inflows by offering government instruments at higher clearing rates to local and foreign investors, the naira has not benefitted as expected.
The local currency plummeted to N1600 due to FX liquidity shortage in the currency market, though gross external reserves continue to maintain uptrend in the second half of 2024, reaching 18-month high, recent data from the apex bank showed.
International payments by the apex bank increased by 30.8% year on year to US$3.31 billion in 5m-2024 from USD2.53 billion in the comparable period in 2023, Cordros Capital Limited said in a commentary note at the weekend.
The breakdown showed that foreign debt service and payments increased by 96.3% year on year to USD2.19 billion, while the amount accounted for 66.1% of total international payments.
The investment firm highlighted that there was an increase in direct remittances underpinned by increased payments for international services by Nigerian residents. Within the period, direct remittances increased by 28.5% year on year to USD841.37 million, analysts stated.
Meanwhile, payments for letters of credit fell by 63.3% to USD279.99 million versus USD762.03 million in the equivalent period in 2023. The contraction was partly attributable to reduced consumer demand underpinned by high inflationary pressures as well as the depreciation of the naira.
Analysts said they expect international payments to remain elevated, supported by the Federal Government’s (FG) repayment of maturing debts primarily from Multilateral and Bilateral sources as well as interest payments.
Trade imports has also been projected to improve in the short term due to reduced naira depreciation and the FG’s 150-day import duty removal on certain agricultural produce, potentially increasing international payments.
On Wednesday, the Central Bank of Nigeria (CBN) re-initiated the Retail Dutch Auction System (RDAS), marking the first foreign exchange retail (FX) auction under the current CBN administration.
Broadstreet analysts highlight that the strategic move by the apex bank was aimed at achieving several objectives.
The CBN is seeking to satisfy the growing FX demand, which has been partly fuelled by seasonal factors such as summer tourism and businesses seeking the greenback for trade; stabilizing the naira, and facilitating transparent price discovery.
The results of the retail Dutch auction showed that the CBN received bids from end users amounting to USD1.18 billion submitted through 32 authorized dealer banks.
However, bids valued at about USD313.69 million from six banks were disqualified due to late submissions or failure to adhere to the required bidding format.
Consequently, the CBN successfully auctioned USD876.26 million at a cut-off rate of N1,495.00 per US dollar, with settlement for the successful bids scheduled for Thursday.
Although the CBN has not specified the frequency of retail auctions, analyst said they expect the naira to stabilize in the short term due to reduced demand pressure and tight naira liquidity after a significant portion of bids were met at the auction.
“However, we note that the expected currency response may be short-lived if the CBN does not sustain interventions in the FX market,” Cordros Capital Limited stated.
Nigerians have received assurances from President Bola Tinubu that, upon cementing ongoing economic changes for the country’s development, he will take into consideration rewriting the 1999 Constitution.
theWhen Tinubu met with a group of distinguished Nigerians known as The Patriots at the State House in Abuja, he made this declaration. Ajuri Ngelale, the President’s Special Advisor, revealed this in a statement on August 9, 2024.
One of the newest calls for a reform of the Constitution is that of The Patriots, led by Chief Emeka Anyaoku, a former secretary-general of the Commonwealth.
Representatives from the legal profession and different geographical zones, including Kanu Agabi (SAN) and Mike Ozekhome (SAN), were present in the group.
According to the statement, Chief Anyaoku urged the president to fix the Constitution, saying it would genuinely solve Nigeria’s problems as a nation.
be composedHe was quoted as saying: “The convening of a national constituent assembly with the mandate to produce a draft people’s democratic constitution. The constituent assembly should be of directly elected individuals, on a non-political basis, from the 36 states of the federation, possibly three individuals per state, and one from the FCT.
geopolitical”They should be assisted by seven constitutional lawyers, one drawn from each of the six geo-political zones and the FCT. The deliberations of the constituent assembly should take into full account the 1960/63 constitutions, as well as the recommendations of the 2014 National Conference and indeed of the various national conferences that considered the Nigerian constitutions.”
”The draft constitution, produced by the constituent assembly, should be put to a national referendum and, if approved, should then be signed by the President as the genuine Nigerian people’s constitution.”
What Tinubu is Saying:
Responding to the requests, the president said the Patriots are not a group he can ignore because they reflect the heart and aspirations of society.
He explained that while certain challenges are required for good governance, the economic and policy decisions he has been making are needed to “manage the twists and turns” of democratic governance.
He assured that the path to a referendum and constitutional review will be considered when his economic reforms start producing the desired results.
He said, ”I believe in the unity of this country, and I want to assure you that whatever is necessary to put happiness and good governance in the hands of all Nigerians is what I would do.
”The avoidance of chaos is necessary to build this country and move its aspirations forward for the benefit of all of us.
”I am currently preoccupied with economic reform. That is my first priority. Once this is in place, as soon as possible, I will look at other options, including constitutional review as recommended by you and other options.”
The recently finished 2024 Summer Olympics in Paris had been a fascinating and thrilling competition. The French capital hosted the games, which went by the slogan “Games Wide Open (French: Ouvrons Grand les Jeux).”
10,714 athletes representing 216 nations competed in the Paris Olympics, winning 1,436 medals overall.
China comes in second with 91 medals, and the United States leads the medal standings with 126. On the other hand, 40 gold medals were shared by both nations.
France, the host country, won 64 medals in all, including 16 gold. With four gold, two silver, and five bronze medals, Kenya is the first nation from Africa to appear on the medal table.
The U.S.A won the XXXIII edition of the Olympic Games on Sunday in Paris, but it was just by the skin of their teeth. They topped the 2024 Games medals table by winning 40 gold medals after the final of the last event of the Games was decided on Sunday.
But they only finished above China by virtue of winning more silver medals than the Asian giants, scooping 44 while their foes had 27.
China were the last team apart from the U.S. to top the standings when they did it on home soil at the 2008 Beijing Games.
The U.S. women’s basketball team helped to seal their country’s dominance by edging hosts France to win the final gold medal of the Games.
The News Agency of Nigeria reports that the Americans also won the most total medals with 126 to China’s 91, after winning 42 bronze medals as against China’s 24.
Japan were third with 20 gold, 12 silver and 13 bronze for a total of 45, while Australia were in fourth place with 18 gold, 19 silver and 16 bronze for a total of 53.
Hosts France was in fifth place with 16 gold, 26 silver, and 22 bronze, totalling 64. However, only 12 African teams made it to the medals table. Kenya led the lot after garnering four gold, two silver and five bronze for a total of 11 to finish in 17th place.
Other African countries which made the medals table include Algeria who were placed joint 39th with two gold and one bronze for a total of three. The others are South Africa in joint 44th with a total six medals (1 gold, 3 silver, 2 bronze), and Ethiopia in 47th with a total of four (1 gold, 3 silver).
Egypt and Tunisia were joint 52nd with a total of three medals each, comprising one gold, one silver and one bronze medal. Botswana and Uganda were also on joint 55th with two medals each, made up of one gold and one silver medal.
Morocco was placed 60th with one gold and one bronze for a total two, while Côte d’Ivoire were in 84th place alongside Cape Verde and Zambia with one bronze each.
NAN reports that Nigeria did not however make the medals table at the Games which had 205 countries participating.
The next edition of the Games is scheduled for 2028 in Los Angeles in the U.S.
The 2024 Paris Olympics delivered a captivating blend of athletic excellence, dramatic upsets, and cultural controversy. Here are the ten moments that defined the Games:
The Olympics kicked off with a visually stunning opening ceremony centered around a boat parade on the Seine River. However, the inclusion of a controversial scene featuring drag queens ignited a firestorm of debate, with religious and conservative groups vehemently criticizing the performance. The event became a focal point for discussions around artistic expression, freedom of speech, and cultural values.
2. Djokovic’s Historic Grand Slam
Tennis legend Novak Djokovic etched his name in the annals of sports history by clinching the Olympic gold medal, completing the elusive Golden Slam. His thrilling victory over Carlos Alcaraz in the final was a display of masterful tennis and showcased the Serbian’s unwavering determination.
3. Biles’ Graceful Act of Sportsmanship
Simone Biles, the face of American gymnastics, demonstrated remarkable sportsmanship by bowing to her rival, Rebeca Andrade, on the podium. The gesture, a rare display of humility in high-stakes competition, garnered widespread admiration and highlighted the true spirit of the Olympics.
4. Lyles’ Heart-Stopping Photo Finish
The men’s 100m final was a nail-biter, with Noah Lyles emerging victorious by a mere five thousandths of a second over Kishane Thompson. The incredibly close finish captivated audiences worldwide, showcasing the razor-thin margins that separate Olympic champions.
5. Pakistan’s Golden Moment
Arshad Nadeem’s triumph in the men’s javelin was a historic moment for Pakistan, marking the country’s first-ever individual Olympic gold medal. His victory over India’s Neeraj Chopra added a layer of geopolitical intrigue to the competition.
6. A Bridge Between Nations
A powerful symbol of unity emerged when table tennis players from North and South Korea took a selfie together on the medal podium. The image, shared widely on social media, represented a rare moment of cooperation between the two nations and offered hope for future reconciliation.
7. Teenage Skateboarding Sensation
Australia’s Arisa Trew became the youngest-ever Olympic gold medalist by dominating the women’s skateboarding park event. Her fearless and stylish performance showcased the burgeoning talent in action sports and inspired a new generation of athletes.
8. Khelif’s Triumph Over Adversity
Algerian boxer Imane Khelif overcame significant challenges, including gender eligibility controversies, to claim the gold medal. Her victory was a testament to her resilience and determination, and it sparked important conversations about inclusivity and fairness in sports.
9. Lopez’s Unmatched Dominance
Cuban wrestler Mijain Lopez cemented his legacy as one of the greatest Olympians of all time by winning an unprecedented fifth consecutive gold medal in the same event. His extraordinary achievement solidified his status as a sporting icon.
10. Dikec’s Unconventional Cool
Turkish shooter Yusuf Dikec captured the world’s attention with his unconventional approach to competition. His relaxed demeanor, complete with a casual outfit and a hand in his pocket, contrasted sharply with the high-pressure environment and made him a viral sensation.
Approximately 700,000 manufacturers and micro, small, and medium-sized firms have indicated their desire to receive the N150 billion loan from the Federal Government, which is intended to assist Nigerian businesses in navigating the present economic downturn.
In a conversation with our correspondent on Friday, Doris Aniete, the Minister of Industry, Trade, and Investment, disclosed this information and emphasized that the ministry was making every effort to guarantee the fund’s timely distribution to qualified companies.
According to data acquired by Bizwatch Nigeria, the Presidential Conditional Grant Scheme has benefited 630,797 Nigerians.
In December 2023, the Federal Government unveiled the Presidential Conditional Grant Scheme as part of the Presidential Palliatives Programme aimed at supporting businesses to navigate the economic crunch caused by government policies.
The fund dedicates N75bn to MSMEs and another N75bn to the manufacturing sector.
The minister, speaking through her Special Adviser, Strategic Communications, Terfa Gyado, hinted that the disbursement would be done in batches with the first set of disbursement to commence soon.
“Disbursement is yet to start but they are finalising the first batch. To date about 700,000 applicants have applied,” the minister’s aide stated
He noted that the government was well aware of the current business climate and created the fund to help Nigerian businesses navigate the harsh economic conditions.
Two months ago, Aniete said the disbursement of N150bn loans to micro, small and medium enterprises and manufacturers would commence by the end of July.
To be eligible for MSME loans up to N1m, applicants must have an existing business in operation for at least one year, or a registered start-up.
They are to provide CAC business registration documents, present the company’s bank statement for existing businesses or the chief promoter’s bank statement for start-ups, fulfil the required monthly turnover and comply with other requirements as specified by the bank.
On security, applicants must provide a personal guarantee of the promoter, agree to the BVN covenant, and adhere to global standing instruction and other securities as required by the bank.
On repayment frequency, it entails a monthly equal instalments with no moratorium, spanning a three-year term.
“For manufacturers, for loans up to N1bn, applicants must choose between working capital or asset financing, maintain at least a six-month business/corporate banking relationship, and provide additional documentation as required by the bank.
“Asset financing comes with a five-year repayment period, and working capital financing includes a six-month moratorium on principal and interest, followed by a 12-month equal instalment repayment plan,” the minister had said in a statement.
The total wealth of shareholders and equity investors on the Nigerian Exchange (NGX) increased by almost N481 billion in the last week as the market awaits the announcement of big banks’ earnings.
Stockbrokers reported in a market update that robust confidence has returned to the local exchange, propelled by a rally in international shares amid concerns about an American recession.
Following this, investors began to pay more attention to purchases in all major market sectors as they processed the latest corporate earnings and changes in the fixed income market.
The Nigerian equity market ended the week on a high note, driven by continued interest in OANDO (+60.47%) and rekindled interest in UBA (+14.71%), ZENITHBANK (+7.92%), and MTNN (+5.16%).
With renewed interest in banking tickers, the index appreciated by +5.14% as the Tier-1 banks closed in green, with UBA (+14.71%) leading the bunch, according to top stockbrokers in the market.
The Consumer Goods (+2.35%), Insurance (+1.79%), and Oil & Gas (+0.97%) indices advanced on the back of strong demand in NB (+19.23%), VERITASKAP (+24.21%), and OANDO (+60.47%), respectively.
However, the Industrial Goods index shed -3.67% following selloffs in BUACEMENT (-9.99%). As the week locked down, the NGX All-Share Index closed higher, breaking through the 98,000-point psychological barrier, thereby extending the mark-up phase, according to Cowry Asset Limited.
Year to date, the return of the exchange has climbed to 31.85% at the close of trading session on Friday, racing towards annual inflation rate of 34.19% as latest buying interest reflated market performance.
Stockbrokers hinted that the market saw above-average trading volumes with positive market internals, reflecting strategic position-taking in high-value stocks and blue-chip companies.
The benchmark index inched higher 0.87% on a week-on-week basis, closing at 98,592.12 points, driven by renewed buying interest in financial and consumer goods stocks. The demand, according to stockbrokers, was fuelled by improved sentiment.
Data from the Nigerian Exchange showed that the total market capitalisation of listed equities surged by 0.87% week-on-week to N55.98 trillion, with the exchange, recording 46 advancers this week compared to 38 decliners.
Sectoral Performance
Key sectors on NGX saw weekly gain except for the Industrial Index, which retreated by 3.67% on the back of price declines in BUACEMENT, BERGER PAINTS, and JOHNHOLT.
This was followed by gains in consumer goods, NGX-Insurance, and marginal gains in the NGX-Oil & Gas indices, which rose by 2.35%, 1.79%, and 0.97% respectively.
These gains were driven by strong buying sentiment in stocks such as UBA, FBNH, OKOMUOIL, NIGERIAN BREWERIES, SOVRENINS, VERITASKAP, OANDO, and ETERNA.
However, despite the positive market breadth, overall market trading activity was somewhat negative this week. There was a 5.9% week-on-week increase in the total number of weekly deals, which rose to 47,451 trades.
Total volumes traded in the week declined by 21.04% to 2.68 billion units, while the total value of trades also decreased by 6.3% to N49.02 billion.
The stocks that moved the market include: OANDO (+61%), RTBRISCOE (+51%), JAPAULGOLD (+36%), ACADEMY (+35%), and UNITED CAPITAL (+31%).
The market’s top losers were CHAMPION (-15%), BUACEMENT (-10%), and UPL (-10%), UNIONDICON (-10%), and DEAP CAPITAL (-10%). Overall, the equities market capitalisation grew by N480.83 billion during the week to N55.98 trillion.
It’s not news that economic hardship is rapidly ravaging our country, Nigeria. In several places especially in market places, the new slogan is, ‘yesterday’s price is today’s price’. It’s becoming an Herculean task to live comfortably, let alone, afford basic necessities such as food.
People now find it hard to eat the basic three-square meals per day. Before you expect help from anyone, you’d first have to help yourself. Isn’t it said that, ‘heaven help this who help themselves?’ To helping yourself first, here are some practical ways to save the money on food:
Identify your needs and wants
The first step that would help you is to know the difference between what you want and what you need. Sometimes, it’s not everything you need you end up buying when you go grocery shopping because you have spent the larger amount on the items you can do without.
A pro tip for you, before you go shopping, while making your list, look out for those things around your house that you buy and do not end using it, make sure not to buy them again. You likely do not need them.
Plan your money
Sounds funny but it is very important that every penny that leaves your pocket is accounted for. If you plan to spend 200k on shopping this week and the bill is exceeding the budget plan, maybe you look through the items you have picked, you might just find something you would not likely find very useful.
Avoid impulsive buying!
This is one of the most important ways to save money. When you draft out a plan, be sure to stick to it. Don’t go round the market buying everything you see. Women are very guilty of this. Once their eyes spot something, especially new trending items, they will just be adding to cart and end up spending a ton of money on something trivial and unimportant. If you are fond of doing that, desist from it today.
Buy in bulk
Bulk buying of food items especially the imperishable products such as Spaghetti, Rice, Tin tomatoes, etc. If you have the funds, you might as well try this method, you’ll eventually get some products. Also, there are people that may not have the capacity to buy in bulk, this advice is for you. Get two, three or more of your friends interested in buying in bulk, you all can contribute money together to buy it, then share respectively.
Don’t go window shopping
Many would be surprised seeing this tip. You might believe there’s no harm in looking, after all, you don’t intend to buy it but window shopping will have seeing many beautiful items you don’t usually come by easily then you get tempted to buy it. The best way to avoid it is by avoiding window shopping. Go shopping when you have a list of things to buy and the fund to get it with.
Prepare your meals at home.
Have you heard of the saying, ‘there’s food at home?’ Yes, it is true. This would help you avoid the exorbitant prices that restaurants give you. Imagine spending over 15k–20k on a plate of food that wouldn’t even satisfy you when you can use that to buy ingredients and cook a more filling meal at home.
You would end up saving a lot of money when you don’t eat out frequently. Also, if you work until evening, you can try packing up lunch from home to cut down on buying from restaurants during your lunch break.
Look for food alternatives
Instead of expensive cuts of meat, you can opt for less expensive options like frozen chicken. You can also substitute very expensive fish like Salmon and catfish and opt for Panla fish, Titus fish, etc. Also, Eggs are one of the cheapest and most versatile protein sources. Also, whole wheat pasta provides complex carbohydrates, fiber, and nutrients at a low cost compared to refined grains. Peanut butter and walnuts are affordable sources of healthy fats, protein, and fiber.
Avoid processed foods
This is the final method on this list. Processed foods get more expensive by the day, and not only are they expensive, they are also less nutritious. Scraping them out of your shopping will end up saving you a lot of money. Opt for healthier and less expensive items from the local markets around you.
It is important to remember that small changes can make a big difference. By implementing these practical ways, you can significantly reduce your food expenses without compromising your health. By focusing on these methods and cooking at home, you can eat a healthy diet without breaking the bank.
This article was written by Tamaraebiju Jide, a student at Elizade University
Alhaji Aliko Dangote, the President and Chief Executive of Dangote Group, has declared that his $20 billion petroleum refinery was specifically designed to process Nigerian crude oil, and in turn, boost its value within the country.
In a statement that was issued by the refinery on Thursday, Dangote expressed concern about the refinery’s departure from its primary focus on Nigerian crude. He further revealed the refinery had also been processing crude oil from Europe, the United States, and other regions.
He further mentioned that the parties concerned were resolving the domestic crude oil supply issues in Nigeria.
The statement also mentioned that the refinery has already affected crude flows. Dozens of Nigerian crude oil cargoes are now staying within the country, and US WTI Midland, a comparable light, sweet grade, being imported. It said the mega-refinery could therefore tighten the light, sweet crude market.
“Its diet is WTI and the lighter Nigerian (crudes) so if you were chasing those barrels you’d probably feel it quite keenly,” the statement stated that a West African crude trader told Commodity Insights.
It said WTI Midland crude initially emerged as the favoured feedstock to supplement Nigerian supply, with the refinery signing long-term supply contracts for the US grade and noting its competitive pricing.
It stated that crude flows in and out of the Dangote refinery have been felt in other markets, especially in Europe, the largest consumer of light, sweet Nigerian crude.
“The US grade has accounted for 30 per cent of crude delivered to Dangote, through 18 cargoes,” the multi-billion dollar company stated in the statement.
It said Dangote stated that the facility would broaden the refinery’s feedstock sources with Libyan, Angolan, and Brazilian crude.
“The refinery was built to use Nigerian crude and add value to it within Nigeria. Why should we deviate from that focus?” Dangote stated, adding that the crude supply issues were “getting resolved”, but that the refinery remained open to all opportunities “to supplement it”.
“Dangote refinery is designed to process a range of light and medium grades of crude oil, including Nigerian grades,” said Rasool Barouni, Associate Director and head of Refining at S&P Global Commodity Insights. “Other similar grades including other WAF grades could be an option.”
Nigeria is sub-Saharan Africa’s largest oil producer, pumping 1.5 million barrels per day in June, according to the Platts OPEC Survey from S&P Global Commodity Insights.
Until this year, all of its oil was exported due to the lack of refining capacity, with gasoline, diesel, and jet fuel imported for domestic use.
The statement also noted that the Organisation of Petroleum Exporting Countries said supplies from Dangote Refinery and Petrochemicals would put pressure on the performance of Europe’s oil industry, especially the Northwest Europe gasoil.
It stated that OPEC in its monthly Oil Market Report for June 2024 listed Dangote refinery among the top diesel and jet fuel suppliers that would disrupt Europe’s oil and gas Industry, a development experts forecasted would positively impact the Nigerian economy.
Recall that Standard & Poor Global quoting trading and the ship tracking sources had earlier predicted that Nigeria’s $20bn Dangote refinery would shake up international crude flows when it reaches full capacity, having already made an impact since coming online in January, trading sources and ship tracking data show.
In another development, the Dangote refinery clarified its stand on crude supply to the plant.
“Our attention has been drawn to media reports alleging that the Dangote refinery has backtracked by acknowledging that NNPC supplied about 60 per cent of the 50 million barrels we lifted.
“To clarify, we have never accused NNPC of not supplying us with crude. Our concern has always been NUPRC’s reluctance to enforce the domestic crude supply obligation and ensure that we receive our full crude requirement from NNPC and the IOCs.
“For September, our requirement is 15 cargoes, of which NNPC allocated six. Despite appealing to NUPRC, we’ve been unable to secure the remaining cargoes. When we approached IOCs producing in Nigeria, they redirected us to their international trading arms or responded that their cargoes were committed.
“Consequently, we often purchase the same Nigerian crude from international traders at an additional $3-$4 premium per barrel which translates to $3-$4 million per cargo,” the refinery mentioned in a statement issued on Thursday.
It still maintained that “we are unable to secure our full crude requirement from domestic production and urge NUPRC (Nigerian Upstream Petroleum Regulatory Commission) to fully enforce the domestic crude supply obligation as mandated by the PIA.”
This article was written by Tamaraebiju Jide, a student at Elizade University
[L-R] Venkatesh Ratham, Group CIO, Access Bank; Adewale AlamiChief Technology Officer, First Bank; Chibuzor Melah, Head Partnership, PalmPay Nigeria; Yinka Edu, Partner, Banking & Finance Team, UUBO; Olutoyin Ogunmola, Head, Data & Analytics, Stanbic IBTC; and Ifeoma Abidoye, Fintech Practitioner, Hazel & Hooreb Consultant; at the recently concluded Nigeria Fintech Forum in Lagos
PalmPay, a leading Africa-focused fintech platform has called for collaboration and innovation among banks and fintechs to drive financial inclusion at the last mile.
The call came from the Head of Partnerships, PalmPay, Chibuzor Melah, who made this known during the Nigeria Fintech Forum held recently in Lagos State.
The event themed – Building the Next Frontiers for Nigeria’s Fintech, brought together key stakeholders from both the public and private sectors, including regulators to discuss the rapid advancements in Nigeria’s financial technology industry.
Speaking on a panel session themed: Rewriting the rules: Building an open, innovative and collaborative bank of the future, Melah noted that “PalmPay is a technology driven company that believes in collaborating and innovating to deliver value to customers.”
“What has given us success in the past 5 years of operation is our investment in data which gives us insights into customer behavior. This enables us to create tailor-made solutions suitable for our customers. Our insight-driven strategy has helped us reach out to the unbanked thereby building trust in open banking,” he said.
“We have succeeded by collaborating with other players in the financial sector. We believe that there’s still a lot more to do in building trust, driving financial inclusion in the last mile,” he added.
The financial sector has undergone incredible changes. According to the EFInA , access to Finance (A2F) Survey 2023 report, the formal financial inclusion in Nigeria has grown significantly from 56% in 2020 to 64% in 2023.
Melah said “This success can be attributed to collaborative efforts between banks and fintechs but more collaboration can take place. Interestingly, the challenges we face today have opened opportunities to collaborate to gain new markets, and deliver new products to benefit the economy,”.
The Nigerian National Petroleum Company Limited (NNPCL) has ordered the Federal Government to refund N4.71tn to offset debts incurred in importing petrol into the country.
NNPCL attributed the N4.71tn claim to “exchange rate differential on PMS and other joint venture taxes” incurred on petrol imports between August 2023 and June 2024.
Wale Edun, the Minister of Finance and the Coordinating Minister of the Economy, revealed this information at the June meeting of the Federation Accounts Allocation Committee.
Exchange rate differentials refer to the profit generated by banks or government agencies due to fluctuations in currency exchange rates. This profit arises from the difference between the buying and selling prices of foreign currencies over time.
For example, if a bank buys one US dollar for 0.9 euros today and sells it for 0.8 euros tomorrow, the difference of 0.1 euros represents the exchange rate differential.
This development also means that the government will support fuel imports by covering the difference between the projected rate and the actual expenses incurred by the NNPC for importing petroleum products into the country.
This difference in cost, which ordinarily should be reflected in the retail price of the product and borne by final consumers, contradicts the government’s claims that subsidies have been eliminated.
This revelation also comes amid challenges faced by the petroleum company to ensure the adequate supply of PMS to marketers for distribution nationwide.
Speaking at the meeting, the minister explained to the state commissioners of finance that the national oil company received presidential approval to carry out this duty using the “Weighted Average Rate” from October 2023 to March 2024.
Edun added that the company had also sought an extension of the period to cover the differential rate but was advised to write to the National Economic Council requesting approval.
The minutes read, “NNPC Limited Exchange Rate Differentials on PMS Importation and Other Joint Venture Taxes for the period August 2023 to April 2024.
“The chairman, PMSC (Post Mortem Sub-Committee) reported that NNPC Limited informed the sub-committee that it had an outstanding claim of N2,689,898,039,105.53 against the federation as a result of the use of ‘Weighted Average Rate’ as of May 2024.
“Furthermore, he disclosed that the sub-committee was able to establish that there was Presidential approval to use the ‘Weighted Average Rate’ from October 2023 to March 2024.”
It was gathered that the government through the National Economic Council had granted the NNPC permission to import fuel at an exchange rate of N650 to $1 at retail coastal pump prices from June 2023 but the devaluation of the naira surged the price to N1,200, indicating a difference of N550 as exchange difference.
On May 29, 2023, during his inauguration, President Bola Tinubu publicly declared that “subsidy is gone,” signaling the end of barriers that had been restricting the nation’s economic growth.
However, this claim has been contested by the International Monetary Fund, the World Bank, and other authoritative figures, who argue that the government had quietly reintroduced fuel subsidies.
In June, a proposed economic stabilisation plan document stated that the government planned to spend about N5.4tn on fuel subsidies. Also, oil marketers had stated that with a landing cost of ₦1,117 per litre for PMS, the monthly subsidy on the commodity had risen to approximately N707bn.
Commenting, the commissioner of Finance, Akwa Ibom State, Linus Nkan, queried how the N2.6tn exchange rate differentials against the federation came about, seeking further clarification.
“The Commissioner of Finance, Akwa Ibom State, referred to paragraphs 3.01 and 5.01 of the PMSC report and requested clarifications as to how the N2.6tn exchange rate differentials against the Federation came about,” the minute said.
Reacting, Joshua Danjuma, the General Manager, FAAC office at the NNPCL, confirmed that the amount claimed by the company was to cover the landing cost of PMS. He added that cost has also significantly increased by May 2024 due to changes in the exchange rate.
He said, “Reacting to the issue of the N2.6tn claim of NNPC Ltd against the Federation, the representative of NNPC Limited confirmed that the figure had increased significantly as of May 2024 due to the change in the rate at which the company was sourcing for the Forex to pay for the landing cost of PMS.”
A month-by-month breakdown indicated that the debt with an outstanding balance of N1.18tn increased to N1.24tn in August 2023, N1.3tn in September 2023, and N1.51tn in October 2023. By November, these claims increased by N570bn to N2.08tn and by another N550bn to N2.63tn in December 2023.
The document further indicated that the figure increased to N3.19tn in January 2024, N3.29tn in February, N3.55tn in March, N4.02tn in April and N4.29tn in May and N4.71tn as of June 2024.
Also, Mohammed Bello, the Chairman, Revenue Mobilisation Allocation and Fiscal Commission, making a presentation during the meeting revealed the reason for the rate difference, saying, “Following the removal of subsidy on PMS on 29th May 2023, NNPCL made requisite pricing adjustments using an exchange rate benchmark of N650 to 1 US Dollar to arrive at retail coastal pump prices from June 2023.
“Furthermore, NNPCL sought and obtained approval of His Excellency, Mr. President, for the freezing of the Proforma Invoice Ex-coastal transfer price at N524.99 from August 2023 to March 31st 2024, using exchange rate modulation to sustain the supply of petroleum products and ensure National Energy Security.
“NNPCL equally reported that the Company had obtained another approval to extend the use of the weighted Average Rate from April to June 2024, though the Sub-Committee is yet to see the document. As of June 2024, NNPCL reported the outstanding against the Federation in respect of the exchange rate differential.
“The Sub-Committee also observed from NNPCL June 2024 report to FAAC that the weighted average exchange rate for the month was N1,200, which they said was the estimated rate as against the N650 that was sought for in the NEC extract.
“It was also observed from the analysis that the volume, price and sales value were not provided to justify the exchange rate differential recorded.
“NNPCL responded that additional information could be provided to the Sub-Committee to clarify the issues raised but based on request. The Chairman of the Commission, who chaired the meeting, agreed to write to NNPCL requesting the relevant information to resolve the issue.”
Meanwhile, Lawal Maikano, the Commissioner for Finance, Niger State, lamented the inadequacy of revenue-generating agencies to meet its revenue target, stressing that only 50 per cent of the budgeted revenue for the current year has been achieved.
“The HCF, Niger State referred to the Communique and observed that only about 50 per cent of the budgeted revenue for the current year was being achieved by the RGAs and described it as a poor budget performance.” He, therefore, harped on the need to adjust the FAAC revenue budget projection to a figure that would be realistic for the RGAs to achieve. He also called on the Agencies to put more effort into revenue generation.
Likewise, Shizzer Bada, the HCF, Kaduna State, raised concern over the accumulation of outstanding arrears of revenue by RGAs against the Federation Account, which was running into trillions of naira between 2023 and 2024. She, therefore, advised on the need to expedite action in concluding the reconciliation with Agencies.
On the forensic audit of the N2.7tn subsidy claim, Ali Mohammed, the Director of Home Finance, reported that the Office of the Auditor-General of the Federation was working on the Forensic Audit exercise of NNPC Limited as mandated which a report was expected to be made available to FAAC after the assignment.
Professor Wumi Iledare expressed confusion over NNPCL’s demand for exchange rate differentials. He questioned how the company could seek reimbursement for losses incurred while selling oil on behalf of the government in foreign currency.
The energy expert pointed out that, like other oil companies, the NNPC is obligated to pay royalties to the government. “What is the basis for the NNPC asking the government to give them money back? Is the NNPC claiming it overpaid them? If the NNPC is really going to follow its new status, what they need to pay to the government is royalty, Nigerian hydrocarbon tax, and corporate income tax. They need to pay the way international companies pay the government. If the agreement is in dollars, then the NNPC needs to pay the government in dollars. What the government does with the dollars is the responsibility of the government.
“If you look at the taxes paid by the international oil companies, they are tax oil which NNPC sells on behalf of the government and gives the government the dollar. So, it is very difficult for me to understand why the Federal Government has to return any money to NNPC unless NNPC is saying that it is the one funding the government in dollar equivalent, and since the government is changing the exchange rate to the tune of N1,500, the government cannot keep the windfall profit because the government now has more than when the exchange rate was N700,” Iledare stated.
The scholar further said, “It is very difficult for me to comprehend the rationale because the government is the owner of the equity, the government owns the tax oil, and the government is the owner of the royalty oil that the NNPC is selling on its behalf.”
He mentioned that the N4.71tn claim might only represent a portion of the total under-recovery on petrol imports. “If the argument is about what they call under-recovery, that means NNPC spent dollars on behalf of the government to import fuel and the government is giving them the under-recovery in naira, which I’m not sure of. It is very complicated to understand.
“That is why the Petroleum Industry Act, wanted to sever a relationship where the Federal Government is dependent on the NNPC. By the way, the Federal Government is not necessarily the owner of NNPC. It is the federation that is the owner of the NNPC,” he added.
This article was written by Tamaraebiju Jide, a student at Elizade University
Investing in bank shares can be a lucrative venture, but it’s essential to approach it with caution and knowledge. The banking sector is complex, influenced by economic conditions, regulatory changes, and the overall health of the financial system. Here’s a breakdown of what you should know before diving in.
The banking industry is the backbone of any economy. Banks play a crucial role in facilitating transactions, lending money, and providing financial services. However, the sector is also susceptible to economic downturns, bad loans, and regulatory risks. It’s essential to grasp the basics of how banks operate, including:
Lending activities: How banks make money primarily through interest on loans.
Deposit mobilization: Attracting customers to deposit money in savings and current accounts.
Investment banking: Providing financial advisory services to corporations and governments.
Risk management: How banks mitigate potential losses through various strategies.
Factors to Consider Before Investing
Economic Indicators:
Interest Rates: Higher interest rates generally benefit banks’ lending margins.
GDP Growth: A robust economy often correlates with increased lending activities.
Inflation: High inflation can erode the value of money and impact bank profitability.
Bank Performance:
Financial Ratios: Analyze key metrics like Return on Equity (ROE), Return on Assets (ROA), and Non-Performing Loans (NPL) ratio.
Asset Quality: Evaluate the bank’s loan portfolio to assess the risk of bad debts.
Capital Adequacy: Ensure the bank has sufficient capital to absorb potential losses.
Regulatory Environment:
Central Bank Policies: Understand how monetary policies impact the banking sector.
Regulatory Changes: Be aware of new regulations that could affect bank operations and profitability.
Risk Tolerance:
Investment Horizon: Determine how long you plan to hold the shares.
Risk Appetite: Assess your comfort level with market fluctuations.
Diversification: Consider spreading your investment across different banks or sectors.
Common Pitfalls to Avoid
Emotional Investing: Avoid making impulsive decisions based on market rumors or short-term fluctuations.
Overreliance on Past Performance: Past performance is not indicative of future results.
Ignoring Economic Indicators: Economic downturns can significantly impact bank performance.
Neglecting Due Diligence: Thoroughly research the bank before investing.
Tips for Successful Investment
Long-Term Perspective: Investing in bank shares is generally a long-term strategy.
Diversification: Spread your investment across different banks to reduce risk.
Stay Informed: Keep up-to-date with industry news and economic trends.
Consult a Financial Advisor: Seek professional advice for personalized guidance.
Conclusion
Investing in bank shares can be a rewarding venture, but it requires careful consideration and research. By understanding the banking sector, analyzing key metrics, and managing your risk, you can increase your chances of success. Remember, it’s crucial to do your own due diligence and consider consulting with a financial advisor before making any investment decisions.
At the official foreign exchange market, the value of the naira against the dollar kept rising.
According to FMDQ statistics, on Thursday, the naira appreciated N2.9 to N1593.62 per dollar, compared to Wednesday’s N1596.52 exchange rate.
The naira rose against the dollar on Thursday, according to a report earlier by Bizwatch Nigeria, and it was trading for N1610 on the black market.
This demonstrated that the naira performed well on Thursday in the parallel and official foreign exchange markets.
This comes as the Nigerian Central Bank launched the Retail Dutch Auction System on Wednesday. The Apex Bank claims that on Wednesday, it sold $876.26 million to 26 banks at a rate of N1495 per dollar.
It’s Friday, and the sun is beginning to set, casting long, golden shadows over the city. The workweek is finally over, and it’s time to unwind. But with the cost of living on the rise, a night out can quickly turn into a budget-buster. Fear not, fellow Lagosians, for there are plenty of affordable and fun spots to enjoy your TGIF without breaking the bank.
Let’s dive into some of Lagos’ hidden gems where you can chill, eat, drink, and be merry without emptying your wallet.
Food Galore
Who says you need to spend a fortune to enjoy delicious food? Lagos is a foodie’s paradise, and with a little creativity, you can savor amazing meals without breaking the bank.
Street Food Sensation: Let’s start with the obvious: Lagos street food is legendary. From the spicy aroma of suya to the tantalizing taste of akara and moi-moi, there’s something to satisfy every craving. Head to Lekki Phase 1 or Ikeja for a mouthwatering street food experience. Don’t forget to try the local delicacy, Ewa Agbado (corn bean pudding), with its spicy sauce.
Buka Bliss: For a more sit-down meal, explore the city’s buka scene. These no-frills eateries offer home-cooked Nigerian meals at incredibly affordable prices. You can find bukas in almost every neighborhood, but Yaba and Ojuelegba are known for their concentration of these culinary treasures.
Food Trucks and Markets: Lagos’ food truck culture is growing, and it’s a great option for budget-conscious foodies. Check out the Lekki Food Truck Festival or explore the various food markets around the city for a variety of cuisines at affordable prices.
Entertainment on a Dime
After satisfying your hunger, it’s time to let loose and have some fun. Lagos offers a vibrant nightlife without the hefty price tag.
Beach Bonfire: If you’re looking for a laid-back atmosphere, gather your friends and head to the beach. Bring some snacks, drinks, and a guitar for a perfect evening under the stars. Remember to choose a safe and accessible beach.
Board Game Cafes: For a more indoor activity, check out the city’s board game cafes. These cozy spots offer a variety of games to choose from, making it a fun and interactive way to spend time with friends.
Outdoor Cinema: Enjoy a movie under the stars at one of Lagos’ outdoor cinemas. Pack some snacks and drinks, and immerse yourself in the cinematic experience without the hefty cinema ticket price.
Drinks and Vibes
No TGIF is complete without a refreshing drink. Luckily, Lagos has plenty of options for those on a budget.
Local Bars and Pubs: Discover the city’s hidden gem bars and pubs. These establishments offer a relaxed atmosphere and affordable drinks. Places like Mushin and Ikeja have some great local spots.
Rooftop Bars with a View: While rooftop bars can be pricey, some offer happy hour deals or affordable drink options. Enjoy stunning city views without breaking the bank. Just be sure to check their happy hour times.
DIY Drinks: If you’re on an ultra-tight budget, host a DIY drink night at your place. Gather your friends, stock up on affordable spirits, and unleash your inner mixologist.
Remember, the key to enjoying a budget-friendly TGIF in Lagos is to be creative and open-minded. Explore different neighborhoods, try new things, and, most importantly, enjoy the company of good friends. With a little planning, you can have an unforgettable night without spending a fortune. So, go out there and make the most of your Friday night!
President Bola Tinubu has ordered the security services to step up their campaign against unauthorized miners in Nigeria’s mining industry, whom he referred to as “exploiters and scavengers.”
According to Tinubu, his administration would make sure that the host communities’ and Nigerians’ health and safety came first in mineral exploration corporations’ operations. He also urged careful exploration and voiced concerns about the welfare of locals living close to mining zones.
Following a presentation by participants in Course 32 of the National Defence College on Thursday in Abuja titled “Harnessing the Mining Industry for Enhanced National Security and Development: Strategic Options for Nigeria by 2035,” the President issued the new directives.
“We have challenges of scavengers and exploiters around the country. We must nip that in the bud, and you military officers understand this better than civil society.
‘‘We expect that through your command, we will have more resources that we need to make sure we have a stable economic environment,” a statement signed Thursday by Tinubu’s Special Adviser on Media and Publicity, Ajuri Ngelale, quoted him as saying.
The statement was titled, ‘President Tinubu’s mineral resources exploration must prioritise health and safety of Nigerians.’
The Course 32 Participants were tasked with researching topical national issues, and their findings during their 11-month study focused on the mining industry’s potential to contribute to national security and development.
Responding to the presentation delivered by Colonel Olajide Bello on behalf of the delegation, Tinubu commended their work and reiterated the importance of diversifying Nigeria’s economy.
‘‘I have listened carefully to your presentation on the theme. Aside from your knowledge of war and security, I could see the intellectual depth of the work done to help the nation, and I must say thank you to all of you.
‘‘I recognise the need for the diversification of the economy, and we have been pushing hard on this. Your involvement will equally promote a better understanding of the issues,’’ the President said.
Tinubu assured the delegation that his administration would ensure the completion of the NDC headquarters in Abuja.
Addressing the health implications of exploration activities during an interactive session, the President expressed concern over the well-being of those living near mining areas.
‘‘We must pay attention to that at the outset by providing medical centres and other facilities that will protect the lives, property and health of Nigerians,’’ President Tinubu said.
In his remarks, Commandant, NDC, Rear Admiral Olumuyiwa Olotu, said the institution, established in 1992 as the National War College, had graduated 2,871 participants since inception.
Olotu said besides participants from 30 African countries, the college has had participants from Bangladesh, Brazil, France, Germany, India, Nepal, and Pakistan.
He said that through the President’s magnanimity, the college had embarked on unprecedented infrastructural upgrades, making the institution compete favourably with any other defence college worldwide.
However, the Commandant appealed to President Tinubu to assist in completing the college’s permanent site in Abuja, noting that the institution currently operates from its temporary facility in the Central Business District owing to the non-completion of its permanent site since 2010.
Speaking with the State House correspondents after the meeting, the Minister of Defense, Badaru Abubakar, said Thursday’s discussion emphasised a crucial sector in Nigeria’s economy: solid mineral development.
“The presentation was on solid mineral development; they have also recorded measures to improve Nigeria’s solid mineral sector, which is apt following the Renewed Hope Agenda of President Bola Tinubu on the expansion of the economy and other sources of income for the Nigerian economy.
“The college is important in researching topical issues that affect the country; they have suggested ways and means to diversify the Nigerian economy through the solid minerals sector,” he stated.
The 111 participants in NDC Course 32 were drawn from the Nigerian Army, Navy, Air Force, Police, Ministries, Departments, and Agencies, as well as 19 international participants from Africa, Asia, Europe, and South America.
The college undertakes in-depth studies on all factors that affect national security and development. The research centre in the college, known as the Centre for Strategic Research and Studies, is also designated as the ECOWAS Training Centre of Excellence for Peace Support Operations at the strategic level.
According to data released by the Central Bank of Nigeria, net foreign exchange inflows into the nation reached $25.4 billion in the first half of 2024, up 55% over the same period the previous year. It claimed that its policy initiatives were to blame for the noticeable advancement. This latest information is related to its $876 million auction, which was held to settle outstanding FX demands among 26 banks.
This development has been driven by a spike in capital importation, which hit $6 billion in June 2024, and record inflows from diaspora remittances through official channels, according to a statement released by the top bank on Thursday.
The statement read, “The CBN’s policy objectives are yielding tangible results and bolstering market confidence. Net foreign exchange flows rose to $25.4 billion between January and June, marking a 55 percent year-over-year increase.
“This growth has been driven by a rise in capital importation, which reached $6 billion in June 2024, and record inflows from diaspora remittances through formal channels.”
The CBN also stated that in the last three weeks, more than $305 million in foreign exchange has been sold to approved dealers via a two-way quote mechanism that has been implemented in recent months to improve interbank market liquidity.
The announcement claims that the CBN bid $876 million to match bids made by clients at an auction that ended on Wednesday, August 7, 2024.
The Retail Dutch Auction System was used to accomplish this. Its goals include facilitating FX sales to end users directly, increasing market transparency, lowering information asymmetry, and assisting in price discovery.
The statement read: “In the latest testament to the Central Bank of Nigeria’s ongoing commitment to support the proper functioning of the foreign exchange market by enhancing liquidity when necessary, the apex bank offered $876 million to fulfil bids submitted by customers at an auction concluded on Wednesday, August 7, 2024.
“In line with its pledge to provide transparent access to foreign exchange for all legitimate customers, the CBN’s leadership has introduced an additional mechanism through the Retail Dutch Auction System to directly facilitate FX sales to end users.
“This approach aims to foster a more transparent market, reduce information asymmetry and support price discovery. It complements the two-way quote system deployed over the past few months to enhance liquidity in the interbank market, through which over $305 million of foreign exchange has been sold to authorised dealers in the last three weeks.”
The apex bank also said that it contributed less than 5 per cent of the $43 billion foreign exchange turnover recorded on the official market as of July 2024.
In its statement, the CBN noted that the FX market is showing signs of improvement and increased depth, with more robust and diversified sources of liquidity contributing to the sustained convergence of exchange rates across all market segments.
The statement added, “The foreign exchange market is also showing signs of improvement and increased depth, with more robust and diversified sources of liquidity contributing to the sustained convergence of exchange rates across all segments of the market. The official market recorded a turnover of $43 billion in customer transactions by the end of July 2024, with CBN-supplied liquidity representing less than 5 per cent of total market activities.”
The CBN also stressed that it is committed to fostering a transparent, market-driven foreign exchange environment and will continue to strengthen the market’s capacity to meet the needs of all legitimate participants.
Since he assumed office last year, the CBN under the leadership of Olayemi Cardoso, has employed a variety of policies to stabilise the foreign exchange market and boost productivity.
While government officials claim there have been massive improvements, the lives of average citizens have yet to improve due to soaring inflation and the high cost of living.
The Organisation of Petroleum Exporting Countries, OPEC, has said supplies from Nigeria-based world’s largest single-train Dangote Refinery and Petrochemicals will put pressure on the performance of Europe’s oil industry, especially the Northwest Europe (NWE) Gasoil.
OPEC in its newly released monthly Oil Market Report for June 2024 listed Dangote Refinery among the top Diesel and jet Fuel suppliers that will disrupt Europe’s oil & gas Industry, a development experts forecasted will positively impact the Nigerian economy.
It would be recalled that Standard & Poor Global quoting trading and the ship tracking sources had earlier predicted that Nigeria’s $20 billion Dangote refinery would shake up international crude flows when it reaches full capacity, having already made an impact since coming online in January, trading sources and ship tracking data show.
The OPEC report revealed that “Upside potential for higher production levels from Nigeria’s Dangote refinery, coupled with strong flows from the Middle East and new supplies from the Mexican Olmeca refinery, will likely exert pressure on NWE gasoil performance in the mid-term.”
It stated further “Europe is one of the world’s largest purchasers of refined petroleum products and relied on imports from Asia and the US after the European Union banned the use of Russian diesel in the bloc.
However, the 650,000bpd capacity refinery which is owned by the Africa’s richest man, Aliko Dangote, is eyeing the wider European market after International Oil Companies stopped supplying its crude oil.
Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin announced the company had earlier exported its first jet fuel cargo to Europe as it rapidly scales production.
The refinery is said to have exported 90 percent of its 3.5 billion litres of jet fuel and diesel to Europe over alleged lack of support from the Nigerian government.
“It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 percent of our production, have been exported,” Edwin said
BP is currently transporting its first jet fuel cargo to Rotterdam from Dangote, after being awarded part of a 120,000 metric tonnes tender offered for the end of May, according to S&P Global.
OPEC stated that, “In June, the jet/kerosene crack spread in Rotterdam against Brent showed a slight decline, influenced by supply-side dynamics. Despite signs of improving air travel activities, subdued jet fuel demand from the aviation sector weighed on the product market
“Going forward, European jet/kerosene demand is expected to see upward pressure as consumption levels from the aviation sector continue to pick up in the coming months.”
S&P had noted that Dangote Refinery in its first six months, scaled to 400,000 b/d and delivered diesel, jet fuel, naphtha, and fuel oil to both domestic and export markets, with Gasoline, Nigeria’s primary fuel type, being expected to be produced from mid-August
Notwithstanding, the refinery has already affected crude flows, with dozens of Nigerian cargoes remaining in-country and US WTI Midland, a comparable light, sweet grade, being imported
The mega-refinery could therefore tighten the light, sweet crude market. “Its diet is WTI and the lighter Nigerian [crudes] so if you were chasing those barrels you’d probably feel it quite keenly,” a West African crude trader told Commodity Insights. “Once they get to 650,000 b/d without any WTI Midland, ‘severely disrupted’ [will be] the headline.”
WTI Midland crude initially emerged as the favored feedstock to supplement Nigerian supply, with the refinery signing long-term supply contracts for the US grade and noting its competitive pricing. Platyts, part of Commodity Insights, last assessed WTI Midland into Rotterdam at $82.36/b on July 31, while Nigeria’s Bonny Light was assessed at $82.80/b on the same day.
Crude flows in and out of the Dangote refinery have been felt in other markets, especially in Europe, the largest consumer of light, sweet Nigerian crude. The US grade has accounted for 30% of crude delivered to Dangote, through 18 cargoes
President of Dangote Group, Aliko Dangote said the facility would broaden its feedstock sources with Libyan, Angolan, and Brazilian crude.
“The refinery was built to use Nigerian crude and add value to it within Nigeria. Why should we deviate from that focus?” said Dangote, adding that the crude supply issues were “getting resolved”, but that the refinery remained open to all opportunities “to supplement it”.
“Dangote refinery is designed to process a range of light and medium grades of crude oil, including Nigerian grades,” said Rasool Barouni, Associate Director and head of Refining at S&P Global Commodity Insights. “Other similar grades including other WAF grades could be an option.”
Nigeria is sub-Saharan Africa’s largest oil producer, pumping 1.5 million b/d in June, according to the Platts OPEC Survey from S&P Global Commodity Insights. Until this year, all of its oil was exported due to the lack of refining capacity, with gasoline, diesel, and jet fuel imported for domestic use.
On Thursday, the combined wealth of equity investors on the Nigerian Exchange (NGX) surged by about N567 billion due to a surge in MTN Nigeria and Oando Plc.
Despite uneven results scorecards from listed businesses, the Nigerian stocks market ended trading on a favorable note as investor mood continued to rise.
According to data, the year-to-date return climbed as the key performance indicators for the equity market rose by 1.03%. Today, the NGX All-Share Index increased by 999.27 basis points, or 1.03%, to close at 98,118.30.
Investors’ wealth increased by ₦676 billion in two days as a result of increased buying interest on the local exchange for recently depreciated medium- and large-cap companies including MTNN, VITAFOAM, NB, and others, according to a market report from Atlass Portfolios Limited.
Stockbrokers reported that activity in the equity market improved, with overall volume and total value traded rising by +24.40% and +18.45%, respectively. 9,059 sales totaling about 791.78 million units for ₦15,126.20 million were completed.
With 19.20% of all trades on the Nigerian stock exchange on Thursday, ACCESSCORP was the most traded stock in terms of volume. JAPAULGOLD (6.17%), UBA (7.39%), ABBEYBDS (8.40%), and GTCO (18.20%) are some more volume drivers.
GTCO emerged as the most traded stock in value terms, accounting for 36.60% of the total value of trades on the exchange. MTNN, VITAFOAM, and UNILEVER topped the advancers’ chart with a price appreciation of 10.00 percent each.
Other gainers include OKOMUOIL which popped higher by +9.99%, OANDO (+9.97%), RTBRISCOE (+9.91%), IMG (+9.86%), NB (+9.85%), and twenty-five others.
Stockbrokers said in their separate market update that nineteen stocks depreciated on the Nigerian Exchange. Reversing previous trend, UCAP was the top loser, with a price depreciation of -9.94%.
STERLINGNG (-5.66%), IKEJAHOTEL (-5.56%), INTBREW (-4.97%), AFRIPRUD (-4.08%), and DANGSUGAR (-1.88%) are some of the other decliners. The market breadth concluded positively, showing 33 winners and 19 losers, in light of the trading trends. Four of the five main market sectors increased marginally, continuing the trend from yesterday. This indicates that the market sector performance was favorable.
After the consumer goods sector saw a gain of 0.54%, the banking sector saw an increase of +1.72%. The insurance sector saw an additional 1.38% appreciation. While the Industrial sector fell by -0.03%, the Oil & Gas sector increased by +0.33%. The Nigerian Exchange’s whole equity market capitalization increased by ₦567.50 billion, closing at ₦55.71.
The Federal Government had issued a revocation of the circular authorizing the registration of civil servants for the acquisition of 50kg bags of rice at the subsidized cost of N40,000.
Aderonke Jaiyesimi, the Director of Human Resources at the Ministry of Special Duties and Inter-Governmental Affairs, made this known in another circular.
The internal circular written by the Director, dated August 2, 2024 was communicated to all directors and heads of departments.
Jaiyesimi said, “I am directed to refer to our internal circular in the Ministry (Federal Ministry of Special Duties and Inter-Governmental Affairs) of late August 2024 on the above subject matter and to inform you that the internal circular is hereby withdrawn. Further details will be communicated in due course.
“Please bring the contents of this internal circular to the attention of staff in your respective departments and units for their information and proper guidance.”
Previously, the ministry had instructed civil servants interested in purchasing subsidized rice to register online via a Google form on the OHCSF website. Completed forms were then submitted to the director of human resources department for approval.
The Federal Government had also mentioned the creation of distribution centers nationwide, where Nigerians could purchase the 50kg bags of rice at a subsidized price of N40,000 per bag. With designated offices handling payments and distribution of the rice, the ministry’s Joint Union Council would monitor the entire process to ensure transparency.
Muhammed Idris, the Minister of Information and National Orientation, stated that the initiative was one of many introduced by the Tinubu administration aimed at alleviating the hardships faced by Nigerians.
This article was written by Tamaraebiju Jide, a student at Elizade University
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