BUSINESS ROUNDUP: CBN revokes licences of seven payment service providers; Oil prices rise as US inventory drops; See other stories that made our pick

Hello, and welcome to the very last Business Roundup for the year. Here, we bring you highlights of events that happened during the week -from the capital market to the mainstream business activities, while not forgetting the tech/economy build up.

Here are the Headlines:

• Manufacturing sector shrinks in December – CBN
• CBN revokes licences of seven payment service providers
• Oil prices rise as US inventory drops
• Banks borrow N1.7tn from CBN within three months

Summary:

Nigeria’s manufacturing sector contracted in the month of December after scraping a weak recovery in the month before, the Central Bank of Nigeria (CBN) said in its Purchasing Managers Index Survey Report for December issued on Thursday.

“The Manufacturing PMI in the month of December stood at 49.6 index points, indicating a contraction from the expansionary level recorded in the month of November 2020,” the CBN report said. Read more

The Central Bank of Nigeria (CBN) has withdrawn the licences of seven payment service providers in the country. The CBN made the proclamation on Thursday in a report titled, Revocation of Operating Licences of Some Payment Service Providers.

According to the banking industry watchdog, the affected firms comprise E-Revenue Gateway Limited, Easifuel Limited, Eartholeum Network Limited, Transaction Processing System, Paymaster Limited, Grand Towers Limited and Globasure Limited. Read more

Oil prices gained further on Thursday as a fall in the United States crude stockpiles boosted demand hopes, while signs of an imminent Brexit deal buoyed investors’ risk appetite.

Brent crude futures climbed by 17 cents or 0.3% to $51.37 per barrel by 08:45 West Africa Time, while U.S. West Texas Intermediate (WTI) crude rose by 10 cents or 0.2% to $48.22.

Both benchmarks added over 2% on Wednesday. Bonny Light, Nigeria’s flagship crude oil grade, appreciated by 74 cents or 1.48% to $50.80. But Qua Iboe, another key national oil grade, declined by 40 cents or 0.80% to $49.40. Read more

Nigerian banks borrowed the sum of N1.7 trillion from the Central Bank of Nigeria (CBN) in the three months to September 2020, data obtained from the Third Quarter Economic Report showed on Wednesday.

Deposit money banks as well as merchant banks regularly accessed the standing facilities window in the third quarter to square up their positions, the CBN said. Read more

On NSE ROUNDUP: Market adds N1.388tn amid rise in liquidity

Read also: BUSINESS ROUNDUP: Naira depreciates across forex markets; Oil prices fall as COVID-19 cases rise; See other stories that made our pick

Nigerian stocks recorded significant appreciation this week, with the Nigerian Stock Exchange (NSE) adding N1.338 trillion amid investors’ surging interest in equities.

Liquidity improved by 46 per cent despite fewer trading sessions on account of the public holiday on Thursday, marking yuletide.

All the key market performance indicators advanced. A positive market breadth was recorded, with 35 gainers emerging against 18 losers. The All-Share Index and market capitalisation simultaneously rose by 5.42%. While the former closed at 38,800.01 index points, the latter closed at N20.279 trillion. Read more

MEANWHILE, on the tech scene, this week, being a build up to the festive period. With many tech startups closing their ventures for the year, notwithstanding, some companies, however, few compared to the previous week, made the headlines.

Amongst these include the Lagos-based truQ for recording an increase in its market growth, according to statements from the company. Also, popular Senegal’s Oolu, with venture presence in Lagos Nigeria, secured $8.5-million to further expand its frontiers. Read full review.

Thanks for joining the roundup this week. See you in 2021 for another serving of Business Roundup. Don’t forget, for the latest news and updates from around the globe, keep reading Ripples Nigeria.

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