Headlines – First Ideas Limited


IOCs’ exit cedes space to locals, will test FG’s policies

The reality of International Oil Companies’ (IOCs) departure from the largest oil patch in Africa is ceding the space to independent companies – a development that will test Nigeria’s ability to craft policies that will make its oil industry attractive for investments.

FIRS revenue growing slower than FG’s spending

The revenue generated by the Federal Inland Revenue Service has been growing slower than the expenditure of the Federal Government in the last seven years, official data collated by BusinessDay show. Although FIRS’ revenue collection hit an all-time high of N6.40b.

Nigeria’s largest drug makers profit rise by 76% in 2021 on rising sales

Nigeria’s largest publicly listed pharmaceutical companies have recorded a significant boost in profits and revenues as an increase in the demand for prescription drugs and other medical interventions rose on heightened health consciousness amid the COVID-19 pandemic.

Africa key to global energy transition – Belgian Energy Minister

The African continent will play a key role in the success of the world’s transition from fossil fuels to renewable energy, says Tinne Van der Straeten, Belgium’s Minister of Energy. Van der Straeten, who is also a Ministerial Vice-Chair of the International Energy Agency (IEA), said the African continent has vast potential…

Nigerians fear ASUU strike could lead to academic apathy

Nigerians have expressed fears that the ongoing strikes from both the academic and non-academic staff of the country’s universities could lead to academic apathy. Also, they urged universities to seek other robust means of internally generated revenue sources to foster learning.

Nigeria’s telecom market attracts least investment in almost 10 years

The Nigerian telecom sector generated the lowest amount of capital investment in 2021, in almost 10 years. It also represents a consistent decline since 2020. A report released recently by the National Bureau of Statistics (NBS) shows that the total amount of investment the sector attracted in 2021 stood at $107.5..

NAFEX Rate Appreciated by 0.03% WoW to N415.77

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended March 25, 2022. The table following the commentary compares weekly turnover for trades between banks (FMDQ Dealing Member (Banks) [DMBs]/Authorised Dealers) and their clients for the weeks-ended March 18 & 25, 2022.

In the FX Spot and Derivatives markets, the total turnover for the week-ended March 25, 2022, was $628.99 million, representing an increase of 25.75% ($128.79 million) from $500.20 million reported for the week-ended March 18, 2022. The week-on-week (WoW) increase in total turnover was driven by the 31.30% ($128.34 million) and 0.50% ($0.45 million) increases in FX Spot and FX Derivatives turnover, respectively. (See Table 1 below)

The WoW increase in FX Derivatives turnover was driven by the 2,116.00% ($10.58 million) increase in FX Futures turnover, despite the 11.30% ($10.13 million) decrease in FX Forwards turnover

In the FX Spot market, the total value of transactions for the week-ended March 25, 2022, was $538.36 million, representing an increase of 31.30% ($128.34 million) from the value of transactions executed in the week-ended March 18, 2022 ($410.02 million)

Table 1: Weekly FX Turnover Analysis

Proshare Nigeria Pvt. Ltd.

In the FX Futures market, $11.08 million worth of FX Futures contracts were traded in one (1) deal, representing a WoW increase of 2,116.00% ($10.58 million) when compared to $0.50 million traded in one (1) deal recorded in the week-ended March 18, 202.

For the week-ended March 25, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/N415.77, compared to $/N415.89 recorded in the week-ended March 18, 2022, representing an appreciation of the Naira against the United States (US) Dollar by 0.03% ($/N0.12). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

Proshare Nigeria Pvt. Ltd.

Mission Impossible: Predicting the Oil Market – OIR 250322

The beauty of the oil market lies in how unpredictable it is. The big story of this week – storms damaging export facilities of Kazakhstan’s flagship 1.2 million b/d CPC grade – was expected to drag oil prices down on Friday when loadings restarted. Source Tom Kool of Oilprice Read More

State Govts Sink Deeper as NNPC Plans N328bn Deduction in April

The amount spent by the Federal Government through the Nigerian National Petroleum Company Limited as subsidy on Premium Motor Spirit, popularly called petrol, in January and February this year is N430.165bn. Source Punch Read More

Nigerians Spend $39.66bn on Foreign Education, Medical Tourism – CBN Report

 Nigerians spent a total of $39.66bn on foreign education and healthcare-related services between 2010 and 2020, according to the Central Bank of Nigeria data. Source Punch Read More

SEC Laments High Level of Unclaimed Dividends

The Securities and Exchange Commission (SEC) has lamented the high number of unclaimed dividends in the capital market. A statement by the Commission in Abuja on Sunday, said Mr. Lamido Yuguda, the Director-General of SEC, expressed the regret when Prof. Kabiru Bala, Vice-Chancellor of Ahmadu Bello University (ABU) Zaria, visited him. Source THISDAY Read More

Bonds Curve Inverts; U.S. Equity Futures, Oil Fall: Markets Wrap

 Sovereign bonds and U.S. equity futures fell Monday as economic risks from inflation and tightening monetary policy sapped sentiment. A key section of the Treasury yield curve inverted, stoking fears of a growth downturn. Source Bloomberg Read More

S&P 500 Futures, Yields Retreat from Multi-Day High as Ukraine, China Weigh On Sentiment

Traders turn risk-averse as the key week comprising the US jobs report for March begins. In addition to the pre-NFP anxiety, weekend headlines suggesting further geopolitical tensions between the West and Russia, as well as indecision over the Moscow-Kyiv talks, also weigh on the market’s sentiment. Source FXStreet Read More

 116.46 million Litres Fuel Lost in 2021, Say NNPC Reports

 A total of 116.46 million litres of Premium Motor Spirit, popularly called petrol, valued at N18.88bn was stolen in 2021, data from different reports obtained from the Nigerian National Petroleum Company Limited showed. Source Punch Read More

Investments In Free Trade Zone Worth $20bn, Says Minister

The Minister, Industry, Trade and Investment, Adeniyi Adebayo, has estimated cumulative investments in the 30 years of operations of the free zone scheme in Nigeria at $20 billion. Source The Nation Read More 

Islamic Finance Guarantees Wealth Creation, Distribution and Protection in the Global Economy

 Since the 2008 Global financial crisis and recession, Islamic finance has emerged as the best system for stabilizing economies and achieving inclusive growth. Mrs. Alima Choudhry, a graduate of Islamic Banking & Finance, Aligarh Muslim University, India, said this while giving her views on why Islamic finance is a viable and sustainable economic system. Source Bukola Akinyele-Yisau for WebTV Read More

NAICOM, Brokers Move to Intensify Insurance Policy Uptake

The National Insurance Commission (NAICOM) has collaborated with the Nigerian Council of Registered Insurance Brokers (NCRIB) to expand the insurance market. Source The Guardian Nigeria Read More

Palm Oil Prices to Decline Gradually as Output Rises

Fitch Ratings expects higher output over the next year to drive a gradual decline in crude palm oil (CPO) prices, which rose to a record of over USD1,900 per tonne (t) in Malaysia in early March 2022.

The price surge has been driven by uncertainty oversupply of sunflower seed oil from Ukraine and Russia, the impact of drought on South American soybeans, and Indonesia’s steps to curb palm oil exports.

However, higher palm oil output in Indonesia is likely to be a significant contributor to better vegetable oil supply in 2022, and we assume an average benchmark price of USD1,000/t in 2022, USD700/t in 2023, and USD600/t thereafter. A prolonged Russia-Ukraine war is a key risk that may keep prices elevated in 2022-2023.

Investors Lose N37.93bn as NGXASI Dips by -0.15% to Open the Week Negative

Equities market closed on a negative note, as NGXASI depreciated by -0.15% to close at 46,893.86 basis points as against +0.01% appreciation recorded previously. Its Year-to-Date (YTD) return currently stands at +9.78%.    

Market breadth closed Positive as BETAGLAS led 18 Gainers as against 16 Losers topped by LEARNAFRCA at the end of today’s session an improved performance when compared with previous outlook.         

Market turnover closed negative as volume moved up by +103.22% as against -17.52% downtick recorded in the previous session. TRANSCORP, STERLNBANK  and FIDELITYBK were the most active to boost market turnover.  SEPLAT and ZENITHBANK topped market value list.

CORNERST leads the list of active stocks that recorded impressive volume spike at the end of today’s session.

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First Ideas Limited is an investment and financial advisory company established in 1994 to provide advisory services to high net worth individuals, trust funds, financial institutions and medium sized companies in growth sectors.

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