Connect with us


Fixed Income, Forex Markets Slow Down as Turnover Dips by N3tr



FMDQ Group - Investors King

Turnover at the FMDQ OTC Securities Exchange, the over-the-counter (OTC) market for debts and foreign exchange (forex), dropped by almost a quarter as investors showed less appetite for securities across the various categories.

In the latest summary of activities at the OTC market, FMDQ indicated that turnover of transactions in the fixed income and currency markets in August dropped by 23.5 per cent or N2.99 trillion to N9.75 trillion compared with the performance in July. This also represented a decline of 15.9 per cent or N1.84 billion compared with the comparable period of 2015.

A breakdown of the turnover indicated that activities in the foreign exchange (forex) market accounted for about 23.3 per cent in August as against 27.6 per cent in July. The Federal Government bonds accounted for 2.9 per cent in August as against 3.79 per cent in July while unsecured placements and takings accounted for 4.06 per cent in August as against 3.99 per cent in July.

Also, treasury bills transactions accounted for 33.0 per cent in August compared with 33.6 per cent in July while secured money market including repurchase agreements and buy-backs accounted for 36.7 per cent as against 31.0 per cent in previous month.

In the forex market, transactions amounted to $3.16 billion, a drop of 66.5 per cent or $6.3 billion when compared with the value recorded in July. The second Naira-settled OTC forex futures contract, NGUS AUG 24 2016, with a total outstanding amount of $152.48 million, was priced at $/N310, matured and was settled within the month.

The Central Bank of Nigeria revised the rates on all outstanding OTC forex futures contracts, while a new 12-month contract – NGUS AUG 16 2017 was introduced at $1/N241. The Naira appreciated by 1.56 per cent to close the month at $/N316.24 while the parallel market depreciated by 9.9 per cent to close at $/N413.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading

Crude Oil

Crude Oil Dips Slightly on Friday Amid Demand Concerns



Crude oil gains

On Friday, global crude oil prices experienced a slight dip, primarily attributed to mounting concerns surrounding demand despite signs of a tightening market.

Brent crude prices edged lower, nearing $83 per barrel, following a recent uptick of 1.6% over two consecutive sessions.

Similarly, West Texas Intermediate (WTI) crude hovered around $78 per barrel. Despite the dip, market indicators suggest a relatively robust market, with US crude inventories expanding less than anticipated in the previous week.

The oil market finds itself amidst a complex dynamic, balancing optimistic signals such as reduced OPEC+ output and heightened tensions in the Middle East against persistent worries about Chinese demand, particularly as the nation grapples with economic challenges.

This delicate equilibrium has led oil futures to mirror the oscillations of broader stock markets, underscoring the interconnectedness of global economic factors.

Analysts, including Michael Tran from RBC Capital Markets LLC, highlight the recurring theme of robust oil demand juxtaposed with concerning Chinese macroeconomic data, contributing to market volatility.

Also, recent attacks on commercial shipping in the Red Sea by Houthi militants have added a risk premium to oil futures, reflecting geopolitical uncertainties beyond immediate demand-supply dynamics.

While US crude inventories saw a slight rise, they remain below seasonal averages, indicating some resilience in the market despite prevailing uncertainties.

Continue Reading


Nigeria’s Petrol Imports Decrease by 1 Billion Litres Following Subsidy Removal



Ship Aveon Offshore

Nigeria’s monthly petrol imports declined by approximately 1 billion litres following the fuel subsidy removal by President Bola Ahmed Tinubu, the National Bureau of Statistics (NBS) reported.

The NBS findings illuminate the tangible effects of this policy shift on the country’s petroleum importation dynamics.

Prior to the subsidy removal, the NBS report delineated a consistent pattern of petrol imports with quantities ranging between 1.91 billion and 2.29 billion litres from March to May 2023.

However, in the aftermath of Tinubu’s decision, the nation witnessed a notable downturn in petrol imports, with figures plummeting to 1.64 billion litres in June, the first post-subsidy month.

This downward trend persisted in subsequent months, with July recording a further reduction to 1.45 billion litres and August witnessing a significant decline to 1.09 billion litres.

August’s import figures represented a decrease of over 1 billion litres compared to the corresponding period in 2022.

The NBS report underscores the pivotal role of the subsidy removal in reshaping Nigeria’s petrol import landscape with the Nigerian National Petroleum Company emerging as the sole importer of fuel in the current scenario.

Despite higher petrol imports in the first half of 2023 compared to the previous year, the decline in June, July, and August underscores the profound impact of subsidy removal on import dynamics, affirming the NBS’s latest findings.

Continue Reading

Crude Oil

Nigeria’s Oil Rig Count Soars From 11 to 30, Says NUPRC CEO



Nigeria oil rig

The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, has announced a surge in the country’s oil rig count.

Komolafe disclosed that Nigeria’s oil rigs have escalated from 11 to 30, a substantial increase since 2011.

Attributing this surge to concerted efforts by NUPRC and other governmental stakeholders, Komolafe highlighted the importance of instilling confidence, certainty, and predictability in the oil and gas industry.

He explained the pivotal role of the recently implemented Petroleum Industry Act (PIA), which has spurred significant capital expenditure amounting to billions of dollars over the past two and a half years.

Speaking in Lagos after receiving The Sun Award, Komolafe underscored the effective discharge of NUPRC’s statutory mandate, which has contributed to the success stories witnessed in the sector.

The surge in Nigeria’s oil rig count signifies a tangible measure of vibrant activities within the upstream oil and gas sector, reflecting increased drilling activity and heightened industry dynamism.

Also, Komolafe noted that NUPRC has issued over 17 regulations aimed at enhancing certainty and predictability in industry operations, aligning with the objectives outlined in the PIA.

Continue Reading