BUSINESS ROUNDUP: Gasoline Price Up 8.73%; CBN fines 10 banks N$7.02 trillion over weak deposits; other stories
Hello and welcome to this week’s business roundup. Here we bring you highlights of events that happened during the week – from capital markets to mainstream business activities, without forgetting the tech/economy build.
Here are the headlines:
- Gasoline price up 8.73%, most expensive in Ebonyi, Enugu
- Nigerian Pension Fund assets reached N$13.8 trillion
- CBN fines 10 banks N7.02 trillion for weak deposits
- Bank loans to oil and gas companies rise to N5.68 trillion
The cost of a liter Premium engine Spirit (gasoline) rose 8.73 percent in March 2022, with Nigerians residing in the south-eastern region paying the highest price.
This was announced by the National Bureau of Statistics (NBS) in its monthly Price Watch Report on Wednesday.
The report showed that the average retail price paid by consumers for petrol rose to N185.30 in March, compared to N170.42 in February 2022.
Oil and gas companies became forced to seek loans from Nigerian banks as vandalism eats away at their revenues.
According to the Central Bank of Nigeria (CBN), total loans to the oil and gas sector increased from N5.19 trillion in January 2021 to N5.68 trillion at the end of December 2021.
This indicates that N490 billion was borrowed from oil and gas companies in 12 months.
Because the expected is not fulfilled Deposits in their current accounts, the Central Bank of Nigeria (CBN) has withdrawn a whopping N7.02 trillion from bank accounts.
CBN has a specific Cash Reserve Requirement (CRR) for each commercial bank in the country. Each bank is required to hold a certain amount of their deposits in the central bank checking account.
The CRR for banks is estimated at 27.5 percent, which many financial analysts consider very high since the money cannot be accessed for lending and other financial operations.
Nigeria’s total pension asset value increased 12 percent year-on-year to N13.8 trillion in February 2022.
The bond fund stood at N13.6 trillion last month. This was included in the pension fund industry report for the month, published by the National Pension Commission (PenCom).
PenCom reports that the total number of retirement accounts increased by over 324,000 to 9.6 million compared to the same period in 2021.
On NSE ROUNDUP: Check out the five biggest gainers and related activity in the Nigerian capital market
The Easter holiday extended into Monday and reduced the number of trading days to four, which weighed on the development of the capital markets this week.
According to NGX’s market report, investors parted from N17.813 billion to trade 1.302 billion shares in 20,212 deals, in contrast to the 1.247 billion shares traded in 23,406 deals worth N22.372 billion the previous week.
Investors’ activities in the capital market were felt more strongly in the financial sector, where 836.781 million shares worth N6.007 billion were exchanged in 9,527 transactions.
Also Read: BUSINESS ROUNDUP: Nigeria’s Oil Production Falls to New Low; Inflation rises to six-month high; Other stories…
The oil and gas industry also saw significant stock trading among investors who traded over 86.909 million shares worth N1.243 billion in 1,770 trades.
Next was the consumer goods industry with 86.286 million shares traded on the Nigerian Stock Exchange in 3,056 transactions valued at N2.225 billion.
In the tech sceneSyarpa, Etap, Algebra Ventures, Union54, AfDB, BFA Global, SadaPay and Soter Analytics were some of the names making headlines this week.
A Nigeria-based fintech startup, Syarpa, announced earlier this week that it would secure $500,000 in upfront funding.
A Nigeria-based startup, Etap, also secured $1.5 million in pre-seed funding to fuel expansion in West African countries.
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