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BUSINESS ROUNDUP: Petrol sells at N330 per litre; NDIC to refund depositors of 23 distressed banks; Other stories

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Nigeria ranks a step higher in Foreign Direct Investment Projects to Africa

Hello, and welcome to Business Roundup this week. 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:

  • Petrol sells at N330 per litre
  • NNPC moves to block Seplat $1.28bn deal
  • NDIC to refund depositors of 23 distressed banks
  • Nigeria loses N379bn to gas flaring in 12 months

Summary:

Nigeria’s subsidy payment is now at N10 billion daily, as international oil price continues to surge.

On Friday, brent the oil benchmark for Nigeria’s oil closed the week at $118.1; this is the highest level in the last nine years and should have been a piece of good news.

But, this development means Nigeria’s landing cost of petrol is now above N333 at an official rate of $416.46 and 1,341 litres per metric tonnes.

Seplat Energy’s plans to buy out ExxonMobil’s shares in its Nigerian unit Mobil Oil Producing Nigeria Unlimited (MPNU) is seriously in trouble as Nigerian National Petroleum Company (NNPC) has also indicated interest.

Reports have it that NNPC Limited has decided to take up its option of right to first refusal and now wants ExxonMobil’s entire asset in Nigeria’s onshore and shallow waters.

The Sale and Purchase Agreement (SPA) deal which is worth a whopping $1.283 billion, plus up to $300 million contingent consideration is to acquire the entire share capital of MPNU as the US company looks to exist Nigeria.

Depositors of 23 distressed Nigerian banks will be refunded by Nigerian Deposit Insurance Corporation (NDIC), the corporation’s managing director, Bello Hassan, assured.

Hassan said depositors whose funds have been trapped in unnamed liquidated banks should begin the process of claiming their money by submitting their details on NDIC’s online verification platform.

He made this known through the corporation’s director of communication and public affairs, Bashir Nuhu, during the 43rd Kaduna International Trade Fair on Thursday, stating that money owed by the 23 distressed banks have been recovered fully.

Gas flaring in Nigeria’s oil fields has taken a huge toll on the economy, and also the livelihoods of Nigerians.

Data has revealed that oil and gas companies flared 260.3 billion standard cubic feet of gas (SCF) between January and December 2021.

The monetary value of burnt gas in the international market is worth over N379.4 billion. This wastage is coming against the backdrop of dwindling oil revenue and increasing debt and continuous epileptic power supply in the country.

Read also: BUSINESS ROUNDUP: Fuel scarcity bites, as NNPC begs; Bitcoin investors lose N33.79tr in 4 days; Other stories

On NSE ROUNDUP: Shareholders lose N14.80bn as Nigeria stock market bearish trading enters second day

Shareholders total investment in the Nigerian capital market dropped by 0.05 percent at the close of trading on Friday.

The equity capitalization dropped by N14.80 billion from N25.49 trillion to N25.47 trillion at the end of the day’s business.

The All-Share Index was down by 27.46 basis points to drop from 47,296.07 to 47,268.61.

Investors traded 179.32 million shares worth N2.12 billion in 5,620 deals on Friday.

On the tech scene, Remoto, Homzmart, Capital Appreciation Limited, Sudo Africa, and Milango were some of the names that made the headlines this week.

Nigeria’s Remoto has launched its e-car service venture, connecting car owners with service workshops within the metropolis.

Also, Nigeria-based fintech startup, Sudo Africa, during the week, raised $3.7 million in pre-seed funding.

 

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