Business
U.S. Stocks Open Higher
NEW YORK – The Dow Jones Industrial Average added 10 points, or 0.1%, to 15383 shortly after the opening bell. On Monday, the Dow tumbled 326 points, or 2.1%, the biggest one-day selloff in more than seven months on growing concerns over a weakening U.S. economyThe S&P 500 index added six points, or 0.3%, to 1748, with health-care and telecommunications shares leading eight of 10 sector groups higher. The Nasdaq Composite advanced 17 points, or 0.4%, to 4014.
Emerging-market currencies rose against the dollar on Tuesday, recovering modestly from their sharp selloff of the past two weeks. The South African rand and Turkish lira, two of the hardest-hit currencies in recent weeks, led the rebound.
Despite some stabilization in emerging-market currencies and stocks, some investors view the strength as a temporary reprieve, with the global selling of stocks likely to resume in the near term.
“Suffice to say investors should steer clear of risk assets over the short term as the turmoil does not look like it will be over anytime soon,” said Mitul Kotecha, an analyst at Crédit Agricole. ACA.FR +2.33%
Richmond Federal Reserve Bank President Jeffrey Lacker did little to calm investors by saying early Tuesday the Fed will likely continue reducing its bond purchases in the coming months because there has been “substantial improvement” in labor market indicators since the program started in late 2012. He doesn’t have a vote this year on the policy-making open-market committee but said on Tuesday that he expects “to see further reductions in the pace of purchases at upcoming meetings.”
Robert Pavlik, chief market strategist at Banyan Partners, said there could be an “intracorrection bounce” after all the recent selling, but “I wouldn’t let that fool me,” as he believes there is “some more downside left” for stocks.
In emerging economies, the Indian rupee and Hungarian forint joined the the Turkish lira and South African rand in rising against the dollar. And the iShares MSCI Emerging Markets exchange traded fund rose.
Investments seen as havens, such as Treasurys and gold, eased slightly as stock bounced. The yield on the 10-year Treasury note inched up to 2.621% from a near three-month low of 2.585% late Monday. Treasury yields rise as prices fall. Gold futures declined 0.7% to $1,251.70 an ounce, after running up 1.6% on Monday.
Meanwhile, crude-oil futures added 1.2% to $97.54 a barrel, and the dollar gained some ground against the euro and the yen.
The economic calendar is light. Factory orders for December, due out at 10 a.m. EST, are expected to show growth of 1.8% on the month. Investors remain focused on jobs data out later this week, as well as the European Central Bank’s policy statement on Thursday.
In Europe, the Stoxx Europe 600 lost 0.1%, after closing at 1½-month low on Monday. The index pared some losses after the producer-price index for the euro zone rose in December for the first time in three months, slightly easing deflation fears.
The DAX 30 index shed 0.5% and the U.K.’s FTSE 100 lost 0.2%, while France’s CAC 40 gained 0.3%.
Japanese stocks tumbled overnight to follow steep declines in the U.S. Monday. Japan’s Nikkei Stock Average dropped 4.2%, rattled by disappointing data out of the U.S., after sliding 2% on Monday. That left the Nikkei down 14% on the year, the worst performance among major global markets. Hong Kong’s Hang Seng Index slumped 2.9%.
In corporate news, Microsoft MSFT +0.75% rose after the software company named company veteran Satya Nadella as its next chief executive.
Yum Brands YUM +9.13% rallied after the parent company of KFC and Taco Bell reported fourth-quarter adjusted earnings that exceeded expectations and affirmed previous 2014 projections.
Michael Kors KORS +20.56% soared after the company reported fiscal third-quarter earnings and revenue that blew past estimates, boosted by strong same-store sales growth in Europe and the U.S.
Take-Two Interactive Software TTWO -12.33% slid after the maker of the Grand Theft Auto game franchise provided a downbeat outlook for the current quarter, although fiscal third-quarter earnings and revenue exceeded estimates.
ATMI ATMI +25.36% surged after the company agreed to be acquired by fellow semiconductor services company Entegris for about $850 million. Entegris also gained.
– WALLSTREET JOURNAL
Business
Nigeria Records Biggest Rise in Multidimensional Poverty Among Five Countries – UN
Nigeria recorded the largest increase in the number of people experiencing multidimensional poverty among five countries that registered increases over their latest measurement periods, according to the United Nations Development Programme (UNDP).
The finding was contained in the 2026 Global Multidimensional Poverty Index report, released on Monday by the UNDP and the Oxford Poverty and Human Development Initiative (OPHI).
According to the report, Nigeria’s multidimensional poverty rate rose from 33 per cent in 2021 to 38.7 per cent in 2024, representing an increase of 5.7 percentage points.
SEE MORE: NNPC’s 30-Day Petrol Discount Is Not a Policy – Sowunmi
The number of Nigerians living in multidimensional poverty increased from 72.2 million in 2021 to 90.1 million in 2024, leaving an additional 17.9 million people affected.
The report noted that the latest increase reversed the progress Nigeria recorded between 2018 and 2021, when the proportion of people living in multidimensional poverty declined.
Nigeria’s Multidimensional Poverty Index value also increased from 0.175 in 2021 to 0.208 in 2024, reflecting a rise in both the incidence and intensity of deprivation.
The intensity of deprivation among multidimensionally poor Nigerians increased from 52.9 per cent to 53.6 per cent over the same period.
Unlike income-based poverty measures, which assess poverty based on how much people earn or spend, the Multidimensional Poverty Index examines overlapping disadvantages experienced in daily life.
The index measures deprivation across three dimensions: health, education and standard of living.
Its 10 indicators include nutrition, child mortality, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing and household assets.
A person is classified as multidimensionally poor when their household experiences deprivation in at least one-third of the weighted indicators.
The report showed that Nigeria had made progress in reducing multidimensional poverty before the latest increase.
The country’s index value declined from 0.230 in 2013 to 0.202 in 2018 and 0.175 in 2021 before rising to 0.208 in 2024.
Similarly, the proportion of Nigerians living in multidimensional poverty fell from 42.3 per cent in 2013 to 37.2 per cent in 2018 and 33 per cent in 2021 before increasing to 38.7 per cent in 2024.
The number of affected Nigerians also declined from 76.3 million in 2018 to 72.2 million in 2021 before climbing to 90.1 million in 2024.
The report further highlighted significant differences in multidimensional poverty across Nigeria’s subnational regions, with incidence ranging from 3.7 per cent to 88.3 per cent across the regions covered by the analysis.
It compared Yobe and Sokoto, two of Nigeria’s poorest subnational regions with similar Multidimensional Poverty Index values, to illustrate how the forms of deprivation experienced by communities can differ despite comparable overall poverty levels.
Globally, the report estimated that 1.2 billion people across 108 countries lived in acute multidimensional poverty.
Sub-Saharan Africa accounted for 616 million people living in multidimensional poverty, while South Asia followed with 393 million.
The report also found that 83.3 per cent of the world’s multidimensionally poor population, equivalent to approximately 998 million people, lived in rural areas, compared with 200 million in urban areas.
Children below the age of 18 accounted for 617 million, or 51.5 per cent, of the world’s multidimensionally poor population.
In sub-Saharan Africa, 355 million children lived in multidimensional poverty, accounting for 57.7 per cent of the region’s poor population.
Business
ADF Targets 5 Million Students, 2 Million Vulnerable Women
In a bold move to deepen retail participation in Nigeria’s capital market, the Aliko Dangote Foundation (ADF) has unveiled a share grant initiative aimed at helping up to five million tertiary students and two million vulnerable women become shareholders in Dangote Petroleum Refinery and Petrochemicals (DPRP) through its Initial Public Offering (IPO).
Managing Director and Chief Executive Officer of ADF, Zouera Youssoufou, disclosed that the Foundation will match qualifying share subscriptions by eligible beneficiaries. Under the programme, students who subscribe for the minimum 10 shares worth N5,250 will receive an additional 10 shares funded by the Foundation, subject to the approved process and allocation, effectively doubling their holdings to 20 shares.
Speaking during a television interview, Youssoufou said the initiative was designed to turn the refinery’s “People’s IPO” vision into reality by giving traditionally underserved groups a direct stake in one of Africa’s largest industrial assets.
“When Aliko announced the IPO, he described it as the IPO of the people and wanted as many Nigerians as possible to participate,” she said.
READ ALSO: FG Lacks Capacity to Meet Dangote Refinery Crude Demand
According to her, students and vulnerable women were specifically selected because they have historically been underrepresented in the capital market.
The ADF said it is prepared to support up to five million students enrolled in Nigerian tertiary institutions, including universities, polytechnics and colleges of education. Eligible applicants must be at least 18 years old and enrolled in a recognised institution. The Foundation is working with relevant educational authorities to verify beneficiaries.
Youssoufou revealed that about N25 billion has been earmarked for the student component of the scheme, while the broader programme for students and vulnerable women is valued at approximately N40 billion.
She emphasised that the intervention is a grant, not an investment, with all shares ultimately belonging to the beneficiaries.
“The shares end up with the beneficiary. Our goal is to help people who may never have had the opportunity to own shares begin building long-term wealth,” she said.
Beyond students, ADF plans to support up to two million vulnerable women, including widows, women living in extreme poverty, persons with disabilities, and widows of members of the Armed Forces. The Foundation is partnering with state governments, the Ministry of Women Affairs, the Armed Forces and other institutions to identify eligible participants.
According to Youssoufou, the initiative is not only about widening ownership in the refinery but also about promoting financial literacy, encouraging a culture of savings and investment, and helping Nigerians build sustainable wealth through participation in the capital market.
Business
FG Lacks Capacity to Meet Dangote Refinery Crude Demand
Nigeria’s efforts to increase production and curb crude oil theft still leaves her short of meeting the demands of the 700,000 barrels demand of the Dangote Petroleum Refinery and Petrochemicals (DPRP).
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made the disclosure during an interview on Channels Television’s Politics Today at the weekend.
The disclosure comes amid renewed debate over government intervention in the petroleum market, with proposals for production subsidies, the 30-days petrol discount and other measures to support domestic refining and reduce the cost of petroleum products.
READ ALSO: Fuel Discount: Presidency Explains Why Atiku’s Production Subsidy Proposal May Fail
He explained that Nigeria’s total crude oil production does not translate into an equivalent volume available for allocation by the government.
Oyedele said Nigeria’s crude oil production of about 1.8 million barrels per day was shared among parties operating under production-sharing contracts and joint ventures, while production costs, royalties and other obligations further reduced the volume available to the government.
“Under the production-sharing contract and joint venture, they share these things, and the ratios vary. Let’s say roughly 45:55,” he said.
He explained that oil producers first recover eligible production costs through cost oil, while royalties and contractual sharing arrangements also determine the quantity ultimately accruing to the government.
“The long and short of what I’m telling you is whatever is left for Nigeria, we exhaust it almost entirely because of fuel subsidy,” he said.
According to the minister, the situation was particularly severe before President Bola Tinubu introduced the economic reforms in May 2023, when the Nigerian National Petroleum Company Limited (NNPC Ltd), which holds the country’s crude on its behalf, had less than 100,000 barrels of freely available crude remaining.
He said the government had exhausted much of its revenue and resorted to printing money before turning to future crude oil production to secure commitments used to finance present consumption.
“That was a ticking time bomb,” Oyedele said, describing the arrangement under which future oil production was committed to support current fuel consumption.
The minister, however, acknowledged improvements following increased production, efforts to reduce crude oil theft and the renegotiation of some existing commitments that had tied down the country’s crude.
He cited comments by business leader Tony Elumelu, who had previously expressed frustration over the scale of crude oil theft in Nigeria, and subsequently reported an improvement in the situation.
Despite these gains, Oyedele said the country was yet to attain the level of freely available crude required to supply the Dangote refinery with its full daily requirement.
“But we are still not at the point where we can give Dangote 700,000 barrels,” he said.
The minister dismissed proposals for the government to supply the refinery with discounted crude or at production cost, arguing that such proposals failed to recognise the constraints on the volume of oil available for allocation.
“We don’t have enough to service Dangote. Dangote imports crude,” he said.
He added that the naira-for-crude arrangement introduced by the Federal Government had helped provide some stability but had not eliminated the supply constraints.
According to him, sustained increases in crude oil production and the release of additional barrels from existing commitments would eventually enable Nigeria to meet the requirements of Dangote and other domestic refiners.
“As we ramp up production and we free up some barrels, we’ll get to a point where we’ll be able to give Dangote everything he wants and other refiners will be able to get enough,” he said.
Oyedele also expressed hope that Nigeria would eventually refine all the crude oil it produces domestically and export refined petroleum products rather than crude.
The disclosure comes amid renewed debate over government intervention in the petroleum market, with proposals for production subsidies and other measures to support domestic refining and reduce the cost of petroleum products.
Oyedele further maintained that achieving that ambition will depend not only on the expansion of refining capacity but also on sustained growth in crude oil production and the availability of additional volumes for domestic processing.





