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Payments through Electronic Channels Total N18.156 trillion in Q3, Says NBS

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  • Payments through Electronic Channels Total N18.156 trillion in Q3, Says NBS

A total of 238.889 million payments valued at about N18.156 trillion were conducted through the electronic channels in the third quarter of this year, says the National Bureau of Statistics. These represented 17.75 per cent and 23.47 per cent increase in volume and value respectively over the records in the second quarter.

NBS made this disclosure in its report titled ‘Electronic Payment Channels in the Nigerian Banking Sector in Q3 2016′.

According to the statistics agency, the channels through which these payments were directed included cheques, Nigeria Electronic Funds Transfer (NEFT), automatic teller machine (ATM), point of sale (PoS), internet (web), NIBSS Instant Payment (NIP) and mobile payments.

A breakdown of the figures showed that in July, a total of 77.615 payment valued at N5.713 trillion were conducted through the electronic channels while in August and September, 82.256 million and 79.017 million payments valued at N6.922 trillion and N5.520 trillion were respectively made via the electronic channels.

Further analysis of the payment data for the third quarter showed that for cheques, 3.008 million payments valued at N1.414 trillion; NEFT-9.527 million payments valued at N5.460 trillion; ATM-157.104 million valued at N1.246 trillion; POS- 16.028 million valued at N189.947 billion; internet-3.326 million valued at N30.763 billion; mobile payments- 10.865 million valued at N223.057 billion; and NIP- 38.828 million valued at N9.591 trillion, were made.

Pursuant to its goal of ensuring financial inclusion by 2020, the Central Bank of Nigeria (CBN) has said attaining the Payment System Vision 2020 (PSV 2020) would be the catalyst to revolutionise the payment system in Nigeria. According to the CBN, achieving the PSV 2020 would help facilitate economic activities as well as boost the financial inclusion drive of the CBN.

To this end, the apex bank had in exercise of the powers conferred on it by Sections 2 (d) and 47 (2) of the CBN Act, 2007, to promote and facilitate the development of efficient and effective systems for the settlement of transactions, including the development of electronic payment systems, had issued guidelines on operations of electronic payment channels in Nigeria.

Payments through electronic channels are fast gaining traction in Nigeria. This is evident in the statistics of volume and value of transactions that have been done through the channels.

Only recently, the Head, Consumer and Digital Banking at United Bank for Africa (UBA), Mr. Yinka Adedeji, noted that, over 70 per cent of financial deposits across commercial banks, were generated from various digital channels that were driven by technology solutions. He disclosed this during an interactive session in Lagos, where he listed the digital channels to include ATM, PoS, internet banking, mobile banking, among others.

Adedeji had attributed the development to innovative solutions created by banks, which was designed to drive financial inclusion in a cashless society.

He had also noted that “less than 30 per cent of generated cash across banks, come from physical cash deposits and cheque deposits”, suggesting that the cashless initiative of the Central Bank of Nigeria was fast gaining acceptance both in urban and rural communities because of the convenience that technology innovations had brought to the banking sector.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

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Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Oil retreated from an earlier rally with investment banks and traders predicting the market can go significantly higher in the months to come.

Futures in New York pared much of an earlier increase to $63 a barrel as the dollar climbed and equities slipped. Bank of America said prices could reach $70 at some point this year, while Socar Trading SA sees global benchmark Brent hitting $80 a barrel before the end of the year as the glut of inventories built up during the Covid-19 pandemic is drained by the summer.

The loss of oil output after the big freeze in the U.S. should help the market firm as much of the world emerges from lockdowns, according to Trafigura Group. Inventory data due later Tuesday from the American Petroleum Institute and more from the Energy Department on Wednesday will shed more light on how the Texas freeze disrupted U.S. oil supply last week.

Oil has surged this year after Saudi Arabia pledged to unilaterally cut 1 million barrels a day in February and March, with Goldman Sachs Group Inc. predicting the rally will accelerate as demand outpaces global supply. Russia and Riyadh, however, will next week once again head into an OPEC+ meeting with differing opinions about adding more crude to the market.

“The freeze in the U.S. has proved supportive as production was cut,” said Hans van Cleef, senior energy economist at ABN Amro. “We still expect that Russia will push for a significant rise in production,” which could soon weigh on prices, he said.

PRICES

  • West Texas Intermediate for April fell 27 cents to $61.43 a barrel at 9:20 a.m. New York time
  • Brent for April settlement fell 8 cents to $65.16

Brent’s prompt timespread firmed in a bullish backwardation structure to the widest in more than a year. The gap rose above $1 a barrel on Tuesday before easing to 87 cents. That compares with 25 cents at the start of the month.

JPMorgan Chase & Co. and oil trader Vitol Group shot down talk of a new oil supercycle, though they said a lack of supply response will keep prices for crude prices firm in the short term.

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Crude Oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

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Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up $1.38, or 2.2%, at $64.29 per barrel. West Texas Intermediate gained $1.38, or 2.33%, to trade at $60.62 per barrel.

Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production along with 21 billion cubic feet of natural gas output, analysts estimated.

Shale oil producers in the region could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output affected, sources said, as frozen pipes and power supply interruptions slow their recovery.

“With three-quarters of fracking crews standing down, the likelihood of a fast resumption is low,” ANZ Research said in a note.

For the first time since November, U.S. drilling companies cut the number of oil rigs operating due to the cold and snow enveloping Texas, New Mexico and other energy-producing centres.

OPEC+ oil producers are set to meet on March 4, with sources saying the group is likely to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.

“Saudi Arabia is eager to pursue yet higher prices in order to cover its social break-even expenses at around $80 a barrel while Russia is strongly focused on unwinding current cuts and getting back to normal production,” said SEB chief commodity analyst Bjarne Schieldrop.

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Crude Oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

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Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Oil prices rose to $65.47 per barrel on Thursday as crude oil production dropped in the US due to frigid Texas weather.

The unusual weather has left millions in the dark and forced oil producers to shut down production. According to reports, at least the winter blast has claimed 24 lives.

Brent crude oil gained $2 to $65.47 on Thursday morning before pulling back to $64.62 per barrel around 11:00 am Nigerian time.

U.S. West Texas Intermediate (WTI) crude rose 2.3 percent to settle at $61.74 per barrel.

“This has just sent us to the next level,” said Bob Yawger, director of energy futures at Mizuho in New York. “Crude oil WTI will probably max out somewhere pretty close to $65.65, refinery utilization rate will probably slide to somewhere around 76%,” Yawger said.

However, the report that Saudi Arabia plans to increase production in the coming months weighed on crude oil as it can be seen in the chart below.

Prince Abdulaziz bin Salman, Saudi Arabian Energy Minister, warned that it was too early to declare victory against the COVID-19 virus and that oil producers must remain “extremely cautious”.

“We are in a much better place than we were a year ago, but I must warn, once again, against complacency. The uncertainty is very high, and we have to be extremely cautious,” he told an energy industry event.

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