CAPITALDIGEST DAILY NEWS 07/04/2025

CRUDE PRICES SLUMP TO $65 FIRST TIME SINCE 2021

Oil prices plunged this week to $65 per barrel as the United States import tariffs and an unexpected OPEC+ supply hike erased $10 per barrel from global benchmarks. The price appreciated last week when US President Donald Trump imposed tariffs on any country that buys crude from Venezuela. However, oil prices turned around the corner as of Friday, with Brent falling to $65, the first time since 2021. According to oilprice.com, the combined effect of Trump’s import tariffs, OPEC+’s inopportune decision to speed up the unwinding of production cuts, and China’s retaliatory actions wiped off $10 per barrel from global oil prices, “with ICE Brent falling below $65 per barrel for the first time since August 2021.” The US West Texas Intermediate crude futures lost $4.96, or 7.4 per cent to end at $61.99. “Seeing backwardation barely change compared to the beginning of the week, one could assume that US tariffs are the defining factor for the price change. Nevertheless, this week will not go down well in the history of oil markets,” oilprice.com reports.

CBN INJECTS $197.71M TO STABILISE FX MARKET

The Central Bank of Nigeria has injected $197.71m into the foreign exchange market on Friday, April 4, 2025, as part of its commitment to ensuring adequate liquidity and maintaining orderly market functioning. This was disclosed in a statement on Saturday by the Director of the Financial Markets Department, Dr Omolara Omotunde-Duke, reiterating the bank’s stance on maintaining market integrity and operational transparency. The statement read, “In line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN facilitated market activity on Friday, April 4, 2025, with the provision of $197.71m through sales to authorised dealers. This measured step aligns with the bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market.” The CBN said the intervention was in line with its broader objective of fostering a stable, transparent, and efficient foreign exchange market. It added that it remained focused on sustaining liquidity levels to support smooth market operations amid ongoing global economic adjustments.

 INVESTORS LOSE N370BN AS WEEKLY MARKET TURNOVER DROPS 1,282%

Stock market investors traded 1.183 billion shares worth N28.868 billion in 42,397 transactions this week on the floor of the Nigerian Exchange Limited. This is in contrast to 7.521 billion shares valued at N398.949 billion that exchanged hands last week in 61,312 deals last week. Consequently, the value of transactions traded by investors on the Exchange dropped by 1282 per cent as investors lost N370 billion. Meanwhile, the market opened for three trading days in the week as the Federal Government declared Monday and Tuesday as public holidays to commemorate the 2025 Eid al-Fitr celebration. Trading in the top three equities, namely Fidelity Bank Plc, Zenith Bank Plc and Universal Insurance Plc, accounted for 264.627 million shares worth N5.932 billion in 5,714 transactions. This contributed 22.36 per cent and 20.55 per cent to the total equity turnover volume and value, respectively. The financial services led the activity chart with 906.590 million shares valued at N18.926 billion traded in 22,876 deals. This contributed 76.60 per cent and 65.56 per cent to the total equity turnover volume and value, respectively. The consumer goods industry followed with 71.059 million shares worth N 2.224 billion in 3,394 deals. The third place was the services industry, with a turnover of 47.305 million shares worth N396.897 million in deals.

NIGERIA’S PUBLIC DEBT HITS N144.67TN, UP 48.58% YOY

Nigeria’s total public debt rose to N144.67tn ($94.23bn) as of December 31, 2024, representing a 48.58 per cent increase compared to N97.34tn ($108.23bn) recorded at the end of December 2023. The Debt Management Office disclosed this in its latest report on the country’s public debt profile. The report also revealed a quarter-on-quarter rise of 1.65 per cent from the N142.32 tn ($88.89 bn) recorded at the end of September 2024, highlighting the continuous increase in the nation’s debt burden during the final quarter of the year. An analysis of Nigeria’s public debt on a year-on-year basis showed an increase of N47.32tn, representing a 48.58 per cent rise from December 2023 to December 2024. The surge in public debt was primarily driven by significant increases in both external and domestic borrowings. Nigeria’s external debt increased by 83.89 per cent from N38.22 tn ($42.50 bn) in December 2023 to N70.29 tn ($45.78 bn) in December 2024. The sharp rise was attributed to new external borrowings and the impact of naira depreciation, which raised the naira equivalent of dollar-denominated debt.

CBN’S $10.50M FUNDING NOT LOAN BUT GRANT – WORLD BANK

The World Bank has clarified that the planned $10.50m financing to the Central Bank of Nigeria is a grant, not a loan. According to a source at the World Bank who spoke to our correspondent under the condition of anonymity on Friday, the amount is being provided under the Finance for Development Multi-Donor Trust Fund as part of a partnership between the World Bank and the CBN. It was earlier reported that Nigeria had approached the World Bank for a $10.50m loan to enhance the CBN’s technical capacity and modernise the country’s domestic payment infrastructure. This was because the World Bank’s website described the CBN as a borrower for the project However, following the statement from the source, Sunday PUNCH was further able to independently verify this from the website, which confirms that the amount is designated as a grant to support the project. It is not a financing commitment under the International Development Association and the International Bank for Reconstruction and Development of the World Bank. The Washington-based bank often lends to Nigeria under the IDA and IBRD.