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Tinubu’s Inauguration Boosts Nigerian Exchange Performance

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Investors on the Nigerian Exchange Limited experienced a significant gain of N1.5tn on the first day of trading following Bola Tinubu’s inauguration as Nigeria’s president.

 

This surge marked a three-month high for the market, with the Market Capitalisation reaching N30.349tn at the close of trading on Tuesday. This level had last been achieved on February 27, the first trading day after the previous presidential election.

 

The NGX All-Share Index also saw a notable increase of 2,764.47 base points or 5.22%, settling at 55,738.35.

 

Furthermore, the Year-To-Date returns showed an appreciation from 3.36% on Friday to 8.76% on Tuesday.

 

The Nigerian Exchange Limited (NGX) ended the previous week on a positive trajectory, recovering from losses in the previous session.

 

This led to a 0.29% increase in the All-Share Index, which closed at 52,973.88 points. The market’s performance was supported by renewed investor interest in key stocks such as MTNN (+0.56%), Zenith Bank (+0.93%), and Geregu (+1.64%).

 

These positive developments contributed to the overall upward movement in the market.

 

During the first trading session with Bola Tinubu as Nigeria’s president, a significant amount of activity took place on the Nigerian Exchange Limited (NGX) floor. A total of 1,078,230,806 billion shares, valued at N15.799bn, were traded in 9,916 deals.

 

Access Holdings emerged as the leader in both volume and value, with 199,620,670 million shares of the HoldCo being traded, amounting to N2.445bn. Following closely in terms of value was GTCO, with shares worth N2.180bn being traded.

 

Additionally, FBN Holdings saw 127,937,125 million shares worth N1.748bn being traded. It is worth noting that FBN Holdings had yet to submit its 2022 annual reports.

 

Market breadth, which measures investors’ sentiment, showed improvement as 64 companies recorded gains, while the equities of 12 companies experienced a depreciation in price.

 

The tracked indices on the Nigerian Exchange Limited (NGX) exhibited a positive performance, with the Banking, Consumer, and Industrial Goods indices leading the gainers’ chart.

 

The Banking index saw a notable increase of 8.20%, followed by the Consumer index at 6.48% and the Industrial Goods index at 6.08%. This rise was primarily driven by the rallies in Zenith Bank (+10.00%), NB (+10.00%), and Dangote Cement (+7.41%).

 

Similarly, the Oil & Gas and Insurance indices experienced gains of 4.04% and 2.29% respectively. This growth was attributed to increased buying interest in Eterna (+10.00%) and Lasaco (+9.52%).

 

Overall, these positive movements across various sectors contributed to the upbeat performance of the tracked indices on the NGX.

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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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