Oil
Oil/Gas Index Leads With 94 Percent Growth
LAGOS – Less than one month to the end of the year the oil and gas sector of the stock market has maintained its lead, recording the highest growth of 94.01 per cent. The Nigerian Stock Exchange (NSE) Oil/Gas Index, which aggregates the year-to-date (YTD) performance of the stocks in the sector, went down by 5.52 per cent last week, but it still has the highest growth of 94.09 per cent YTD.
This implies that the sectoral indicator has outperformed the NSE All-Share Index (ASI) by 54.49 per cent. ASI closed last week with YTD growth of 38.6 per cent. The industrial goods index occupied the second position with a growth of 61.96 per cent. The ethical index, NSE Lotus II Index returned 56.4 per cent, while NSE Consumer Goods posted a growth of 34.07 per cent.
The NSE Insurance Index and NSE Banking Index rose 22.08 per cent and 20.58 per cent. The NSE 30 Index, which measures the performance of the top 30 companies on the Nigerian bourse, posted a growth of 34.98 per cent. The only sectoral index that has returned a negative performance is the Alternative Securities Market (ASeM), which recorded a decline of 2.17 per cent.
An analysis of the NSE oil and gas sector showed that the growth was driven majorly by wholly Nigerian companies comprising Forte Oil Plc, Conoil Plc, MRS Oil Nigeria Plc and Eterna Plc. Forte Oil posted an unprecedented year-to-date surge of 1,374 per cent, followed by Conoil Plc with a growth of 231 per cent.
MRS Oil recorded 129 per cent, just as Eterna accounted for 109 per cent appreciation. The industrial goods index was lifted by stocks Presco Plc, which posted 115 per cent, CAP Plc 78 per cent growth and Lafarge Cement WAPCO Nigeria Plc-71 per cent.
In the same vein, the consumer goods Index was influenced by performance of Cadbury Nigeria Plc (116 per cent),Champion Breweries Plc (308 per cent) and Jos International Breweries (181 per cent). The banking index rode on the back of gains by Wema Bank Plc (119 per cent),United Bank for Africa Plc(64.6 per cent) and Diamond Bank (41 per cent) among others.
– THIS DAY
Oil
FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
Business
Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
Oil
ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations
As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.
Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”
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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.
Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.
We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.
On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.