CAPITALDIGEST DAILY NEWS, 26/05/2025

PETROL PRICE JUMPS 76% IN ONE YEAR – NBS

The average pump price of Premium Motor Spirit, also known as petrol, surged by 76.73 per cent year-on-year to N1,239.33 per litre in April 2025, the National Bureau of Statistics has said. This represents a sharp rise from N701.24 recorded in April 2024, highlighting the continued volatility in the downstream petroleum market following the removal of fuel subsidies. However, compared to March 2025, when the average stood at N1,261.65, petrol prices dropped slightly by 1.77 per cent. The figures are contained in the NBS report titled “Premium Motor Spirit (petrol) Price Watch (April 2025)”, released on Wednesday. A state-by-state breakdown showed that Imo recorded the highest average price of N1,588.50 per litre, followed by Jigawa at N1,567.84 and Sokoto at N1,550.00. In contrast, Yobe posted the lowest price at N970.00, while Kwara and Osun followed with N1,014.85 and N1,042.49 respectively. Zonal analysis revealed that the South-East had the highest average price at N1,341.71, while the South-West recorded the lowest at N1,138.64. Other regional averages include North-West (N1,325.90), North-Central (N1,242.94), South-South (N1,222.54), and North-East (N1,166.27). Despite recent interventions by local refiners and the Nigerian National Petroleum Company Limited, fuel prices have remained unstable. Mid-April saw Dangote Refinery slash its ex-depot price to N835 per litre, while NNPCL also adjusted prices downward across its outlets, selling at approximately N910 in Abuja. The fluctuations in petrol pricing are feeding into broader inflationary pressures. The Central Bank of Nigeria, in its April 2025 Inflation Expectation Survey, identified energy prices—including petrol—as the biggest driver of inflation perception, with 91 per cent of respondents citing it as a major concern. Transportation costs, which have been directly affected by higher fuel prices, were the third most mentioned inflation driver, with 86.7 per cent of respondents pointing to rising travel and logistics expenses.

CBN SETS 12-MONTH DEADLINE FOR NEW AML STANDARDS

The Central Bank of Nigeria has issued a draft framework aimed at modernising anti-money laundering practices across the country’s financial system through the adoption of intelligent, automated solutions. In a circular dated May 20, 2025, and addressed to all regulated financial institutions, the apex bank stated that the proposed standards are in response to the growing digitalisation of Nigeria’s financial system and the increasing sophistication of financial transactions. The circular, referenced BSD/DIR/CON/AML/018/033, outlines baseline standards for the deployment of automated anti-money laundering solutions powered by artificial intelligence and machine learning. According to the CBN, the new standards are intended to enhance efficiency, improve detection accuracy, and ensure full compliance with both local regulations and international frameworks such as those established by the Financial Action Task Force. The draft framework is the result of a comprehensive assessment of current AML tools used across the financial sector and incorporates best practices from jurisdictions that have adopted similar technologies. While the standards are still in draft form, stakeholders have until June 13, 2025, to submit comments, after which the final framework will be issued. From that date, financial institutions will be given 12 months to achieve full compliance.

NGX SHEDS N70BN AS MARKET DIPS

The Nigerian Exchange closed negatively on Wednesday, as the equities market reversed the previous day’s gains, with investors losing approximately N70bn in market capitalisation. The All-Share Index shed 111.37 points, representing a 0.1 per cent decline, to close at 109,619.10 points. Consequently, the overall market capitalisation dipped from N69.0 tn to N68.9 tn. Despite the market loss, trading activity improved, as investors exchanged 664.16 million shares worth N13bn in 19,439 deals. This represents a 34 per cent increase in trading volume, although turnover declined by two per cent compared to the previous trading day. The market breadth was marginally positive, with 29 stocks recording gains against 28 losers, while 67 equities closed flat. RT Briscoe Nigeria Plc led the gainers’ chart with a 10 per cent increase to close at N2.09 per share. It was followed by Eunisell Interlinked Plc, which rose by 9.75 per cent to close at N12.95. Livestock Feeds Plc appreciated by 9.61 per cent to settle at N8.90, while Linkage Assurance Plc gained 9.46 per cent to close at N1.62 per share. Other notable gainers include Meyer Plc, which rose by 8.89 per cent to N9.80, and Mutual Benefits Assurance Plc, which closed 8.70 per cent higher at N1.00. On the flip side, Champion Breweries Plc topped the losers’ table with a 10 per cent decline to close at N7.20. Lasaco Assurance Plc also fell by 10 per cent to close at N2.52. McNichols Plc dipped by 9.45 per cent to N2.30, while Multiverse Mining and Exploration Plc lost 7.22 per cent to close at N9.00. Sovereign Trust Insurance Plc depreciated by 6.80 per cent to N0.96, and Tantalizers Plc fell by 6.47 per cent to N2.60.

FX INFLOWS THROUGH MONEY TRANSFER OPERATORS HIT $4.76BN – CBN

Foreign exchange inflows through International Money Transfer Operators rose to $4.76bn in 2024, a 44.49 per cent increase from $3.30bn in 2023. This was according to the Central Bank of Nigeria’s latest quarterly statistical bulletin. The year started strong with January inflows rising 32.5 per cent year-on-year to $390.86m from $295.21m in January 2023, while February inflows surged 67.3 per cent to $326.91m compared to $195.23m the previous year. March recorded $363.76m, up 30 per cent from $279.79m in 2023, and April saw the highest first-half growth with an 83.3 per cent rise to $466.11m from $254.26m a year earlier. May inflows increased 45.3 per cent to $404.75m, June remained strong with $389.79m, up 40.2 per cent, while July and August were standout months, posting $552.94m and $585.21m respectively, up 130 per cent and 116 per cent year-on-year. These two months of July and August accounted for nearly 25 per cent of total inflows for the year. The final four months showed mixed trends as September inflows rose 40.8 per cent to $336.61m, October increased 29.1 per cent to $378.85m, November declined by 22.1 per cent to $252.28m, and December rebounded 9.1 per cent to $316.59m. The rise in IMTO inflows is linked to reforms introduced by the CBN under Governor Yemi Cardoso since his appointment in September 2023.

BANK STOCKS SURGE AMID FX, POLICY SUPPORT

The Nigerian equity market gained 64.11 per cent between July 2023 and June 2024, closing at 100,057.49 points, according to the recently published Fund Manager’s Report on the Nigerian Exchange Limited. The performance was supported by renewed participation from foreign portfolio and domestic investors, alongside strong corporate earnings. According to the report, the Industrial Goods Index recorded the highest return of 88.43 per cent, driven by the share price movement of Dangote Cement. The Oil and Gas Index followed with a return of 82.95 per cent, buoyed by activity in Seplat, TotalEnergies and Oando. The FMCG Index appreciated by 75.84 per cent due to buying interest in BUA Foods, Dangote Sugar, Flour Mills and Honeywell, following the acquisition of NASCON. The report noted that the banking sector index advanced by 20.46 per cent, amid regulatory actions on recapitalisation, net open position, cash reserve ratio, asymmetry corridor, and monetary policy rate. Insurance stocks returned 38.42 per cent during the period, led by demand in AIICO and Mansard. Meanwhile, inflation rose to 28.92 per cent in December 2023 from 21.82 per cent in January of the same year. The rate further increased to 34.19 per cent in June 2024, largely due to continued naira devaluation, food supply disruptions, the removal of the petrol subsidy, and infrastructure issues in transportation and storage.