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Local Transactions Surpass 2022, Soars To N1.968tn – Report

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The Nigerian Exchange Limited has recorded domestic transaction values totaling N1968.4bn year-to-date.

 

This marks a 1.18% increase compared to the total domestic transaction value of N1945bn for the entire year of 2022.

 

In July 2022, the year-to-date value of domestic transactions was N1.49tn, as stated in the recent Domestic & Foreign Portfolio Investment Report published by the Nigerian Exchange Limited for July 2023.

 

As per the report, domestic investors continue to hold a prominent position on the local stock exchange, while foreign investors show reluctance towards Nigeria due to its ongoing challenges with foreign exchange.

 

The situation has been exacerbated by the Naira’s floating since the Central Bank of Nigeria’s announcement in mid-June, where segments of the currency markets were consolidated into the official Investors & Exporters window.

 

The report discloses that as of the conclusion of July, transaction data for 2023 indicates that total domestic transactions amount to approximately N1.968tn, while total foreign transactions are approximately N185.62bn.

 

When considering a month-to-month perspective, domestic transactions on the NGX increased significantly by 83.5% to N662.44bn at the end of July, compared to the N361.01bn recorded in June 2023.

 

Moreover, foreign inflow experienced a notable decline to N9.45bn in July 2023, showing a sharp drop from the N22.72bn recorded in June.

 

Although foreign inflow had experienced a slight increase in May, reaching N27.51bn, the inflows for the earlier months of the year remained below N10bn.

 

Nevertheless, the overall foreign transactions experienced a slight decline of 11.37%, moving from N45.74bn (approximately $60.49m) in June 2023 to N40.54bn (approximately $52.58m) in July 2023.

 

On another note, trading data provided by market operators indicated that by the end of July, the total transactions on the nation’s stock exchange saw a notable increase of 72.83%, rising from N406.750bn (about $537.87m) in June 2023 to N702.98bn (about $911.91m) in July 2023.

 

Comparing the current month’s performance to July 2022 (N101.18bn), it’s evident that total transactions have surged by an impressive 594.78%.

 

Additionally, in July 2023, the total value of transactions conducted by Domestic Investors surpassed those carried out by Foreign Investors by approximately 88%.

 

Recall that Oba Otudeko, the former chairman of FBN Holdings, had acquired over four billion shares of the bank in a transaction valued at N87.8bn.

 

This deal was executed through a company in which two of his children hold controlling stakes.

 

Notably, this transaction marks the largest volume of First bank shares traded in a single day since 2012, when the stock exchange began publishing data.

 

A breakdown of the domestic transactions showed that Institutional Investors outperformed Retail Investors by 30 per cent in July 2023.

 

A comparison of domestic transactions in the current and prior month (June 2023) revealed that retail transactions increased by 84.67 per cent from N124.52bn in June to N229.95bn in July 2023. Similarly, the institutional composition of the domestic market increased by 82.88 per cent from N236.49bn in June 2023 to N432.49bn in July 2023.

 

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Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd

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Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.

The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.

Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.

According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.

ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months

The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.

Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.

She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.

The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.

The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.

Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.

Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.

The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.

It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.

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FHC Orders NUPRC to Comply with PIA

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Local Firms Lead Revival of Idle Oil Wells – SPE

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Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products

Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

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