States to lose N19bn in oil, gas revenues in 2022 – World Bank
These are scary times for Nigeria as a World Bank report revealed that states in the country will lose N19 billion in oil and gas revenues this year, following budgetary pressures on the states as revenue collection drops.
According to the international lender, in its 2022 Nigeria Development Update publication, the drop in the federal government’s revenue owing to the rising oil subsidy, several leakages in the system, and slow recovery from the negative impact of the COVID-19 virus have put many states in a serious situation needing help.
The bank advised that states should restructure and reorganise their fiscal positions so that their expenditure won’t put them in a position that will make it difficult for them to service their debt or meet their expenditure this fiscal year.
Banks’ non-performing loans hit N1.21trn – CBN
The latest report of the CBN revealed that the non-performing loans in the banking sector rose to N1.21 trillion as of the end of February 2022.
The report released by the Monetary Policy Committee of the CBN revealed that as of the end of February 2022, the total credit recorded in the banking sector rose to N25.3 trillion from N21.1 trillion the previous month, which represents a N4.2 trillion increase.
Kingsley Obiora, a member of the committee, said that the impact of sound industry risk management practices, the global standing instruction policy effects, and regulatory forbearance prevented it from escalating beyond this position.
Dangote Cement, MRS, others reroute stock market northwards
Nigeria’s equities market on Tuesday recorded its first gain this week as investors showed remarkable buy interest in most capitalised stock, Dangote Cement Plc and that of MRS Oil Nigeria Plc.
The market went up by N181billion or 0.66percent at the close of trading. The share price of Dangote Cement increased most by N20.70 or 8.30percent, from N249.30 to N270, followed by MRS which moved up by N1.45 or 9.80percent, from N14.80 to N16.25.
Also, NAHCO made the league of top advancers, after rising 60kobo or 7.69percent, from N7.80 to N8.40. Livestock Feeds increased from N1.20 to N1.32, adding 12kobo or 10percent.
click here to read more:Dangote Cement, MRS, others reroute stock market northwards
Wheat price crashes by 5%
The price of wheat fell by another 5 percent from 1027 USD/bu Tuesday to close at 980.25 USD/bu following news of Russia’s prospective supply and the start of winter wheat harvesting in North America and Europe.
Yesterday, the price responded to India’s food ministry’s plan to reintroduce wheat exports to selected neighbouring countries depending on availability. The country’s decision is a reversal from an earlier plan to ban shipments, which forced prices to hit record-highs in May.
US stock futures drift lower after market rebound
An overnight rally by major indexes enabled equities to recover some of the losses suffered in previous weeks of heavy selling. Thus, the US stock futures drifted lower as a result on Wednesday, trading flat to negative region as a result of this overnight rally.
According to Trading Economics, the Dow Jones, S&P 500, and Nasdaq gained 2.15 percent, 2.45 percent, and 2.51 percent, respectively, at the close of regular trading on Tuesday.
The gainers’ chart was led by oil giant, Exxon Mobil (6.2 percent), Tesla (9.4 percent), and Walmart (3.3 percent). Other notable names are Apple (3.3 percent), Nvidia (4.3 percent), Amazon (2.3 percent), Microsoft (2.5 percent) and Alphabet (4.1 percent).
Meanwhile, the market will be looking forward to the Fed Chairman’s speech as he is set to testify before Congress on Wednesday and Thursday.