CAPITALDIGEST DAILY NEWS, 27/01/2025

179 OIL THEFT INCIDENTS UNCOVERED IN ONE WEEK – NNPCL

The Nigerian National Petroleum Company Limited says it uncovered 179 incidents of crude oil theft in the past week. The company affirmed that the war on crude oil theft and vandalism rages on as industrywide security collaboration continues to safeguard hydrocarbon infrastructure. A video released by the NNPC shows the incidents recorded between January 11 and 17 across the Niger Delta region, with 29 illegal pipeline connections and 55 illegal refineries reportedly uncovered within the period. “Between the 11th and 17th of January 2025, a total of 179 incidents were recorded across the Niger Delta region, thanks to the coordinated efforts of NNPC Limited’s Command and Control Centre, Tantita Security Agency, Pipeline Infrastructure Nigeria Limited, Maton Engineering Nigeria Limited, Shell Petroleum Development Company Limited Nigeria, Liquefied Natural Gas, Oando PLC, and government security agencies,” the NNPC stated. The state-owned energy firm disclosed that security forces in Bayelsa and Abia States uncovered illegal pipeline connections and swiftly conducted repairs on them. It explained that the crackdown continued as security operatives dismantled illegal refineries producing black-market petroleum products in Rivers and Abia States. It was said that the week also revealed hidden storage sites used for illegal activities in Rivers and other locations in Abia.

NIGERIA’S FX RESERVES PLUNGE BY $832M IN TWO WEEKS

Nigeria’s foreign exchange reserves have recorded a significant decline within two weeks this January, dropping by $832.62m between January 6 and January 21. Data from the Central Bank of Nigeria published on its official website highlights this development, marking the sharpest fall in reserves since April 2024. The decline raises fresh concerns over the nation’s external liquidity position amidst mounting economic pressures. Figures from the CBN show that Nigeria’s gross external reserves stood at $40.92bn as of January 6, 2025. By January 21, the reserves had dipped to $40.09bn, reflecting a 2.03 per cent decrease over the two weeks. This drop follows about five months of relative stability and growth in the country’s foreign exchange reserves. The current levels, now at a two-month low, suggest the possibility of the reserves falling below $40bn by the end of January if the downward trend continues. Further analysis revealed that the reserves experienced a consistent decline throughout the period. On January 13, the reserves dropped below $40.6bn for the first time in the month, reaching $40.56bn. By January 15, the reserves had further declined to $40.42bn, before settling at $40.09bn on January 21.

EQUITY MARKET SUSTAINS BEARISH TREND AS ASI DECLINES BY 0.05

The Nigerian Exchange Limited continued its bearish trend on Thursday, as the benchmark All-Share Index dipped by 0.05 per cent, closing at 102,788.20. Despite the minor decline, the market posted a weekly gain of 0.59 per cent and a 4-week gain of 1.41 per cent. However, the year-to-date performance remained slightly negative, with a 0.13 per cent loss. The market capitalisation of the NGX currently stands at N63.1 tn, with 123 listed equities participating in today’s trading session, which ended with 28 gainers and 28 losers. SCOA Nigeria emerged as the top gainer, appreciating by 9.76 per cent to close at N3.60 per share, followed by Daar Communications (+9.09 per cent), May & Baker Nigeria (+8.43 per cent), and Prestige Assurance Company (+6.82 per cent). On the flip side, Morison Industries recorded the highest loss, declining by 9.98 per cent to close at N3.61 per share. Other notable losers included C&I Leasing (-9.91 per cent), Ikeja Hotel (-8.89 per cent), and Neimeth International Pharma (-8.51 per cent). At the close of trading, a total of 390,357,501 shares valued at N21.44 bn were traded across 12,159 deals, reflecting a 45 per cent improvement in turnover and a 13 per cent increase in the number of deals compared to the previous trading day.

 2024 POS TRANSACTIONS SURPASSED ATM USAGE BY 603% – CBN

Nigerians made transactions worth N85.91tn through point-of-sale terminals in the first half of 2024, a figure that is over seven times the N12.21tn recorded for ATM transactions within the same period. This data, sourced from the Central Bank of Nigeria’s quarterly statistical bulletin, reflects a significant shift in consumer preferences as POS becomes the dominant payment method, and the lack of cash at ATMs and lengthy queues persist. When compared to 2023, the value of POS transactions saw a 77 per cent increase, rising from N48.44tn to N85.91tn, while the volume of transactions grew by 31 per cent, from 4.87 billion to 6.39 billion. This growth can be attributed to the widespread availability of POS terminals and the ease they provide for cashless transactions across the country. In contrast, ATM transactions dropped in value from N14.63tn in 2023 to N12.21tn in 2024, a 16.6 per cent decline, while their volume also fell slightly, from 519.52 million to 496.43 million. Comparing 2023 to 2022, POS transactions demonstrated more robust growth, as the country battled cash scarcity at the end of 2022 and the start of 2023.

CBN SOLD N756BN TREASURY BILLS – AFRINVEST

The Central Bank of Nigeria sold Treasury bills worth N756bn last week following a subscription at its primary auction. The apex bank offered N530bn across 91-day, 182-day, and 364-day maturities, with oversubscription primarily driven by long-dated bills. Out of the total offer, N50bn was allocated to 91-day bills, N80bn to 182-day bills, and N400bn to 364-day bills. Short- and mid-tenor instruments witnessed weaker demand, with subscription ratios of 0.5x and 0.2x, respectively. Conversely, the 364-day bill recorded a robust 6.2x subscription, attracting bids worth N2.5tn. “The CBN allotted 0.5x, 0.2x, and 1.8x of the respective offers, resulting in total sales of N756bn worth of bills. Notably, the auction cleared at stop rates of 18 per cent and 18.5 per cent for the 91-day and 182-day instruments, respectively—unchanged from the prior auction—while the 364-day rate declined by 82 basis points to 21.8 per cent. Overall, the auction achieved a total subscription of 4.8x the initial offer, compared to 3.0x recorded in the previous auction. In the secondary market, lost bids spilt over, sustaining bullish sentiment. Average yields declined further by 16 basis points week-on-week to 25.5 per cent. Long-tenor bills led the contraction, with yields falling by 25 basis points, compared to declines of 12 basis points each for short- and mid-tenor bills.

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