Nigeria solidified its position as Africa’s top oil producer in November, with production rising to 1.48 million barrels per day (bpd), surpassing Algeria and Congo, according to OPEC’s latest report. This increase coincides with OPEC’s overall production growth of 104,000 bpd, driven by gains in Libya, Iran, and Nigeria, despite production cuts by major producers like Saudi Arabia and Iraq. Meanwhile, Dangote Refinery marked a milestone by exporting its first Premium Motor Spirit (PMS) shipment to Cameroon, strengthening intra-African trade and showcasing its capacity as Africa’s largest refinery. This collaboration with Neptune Oil is set to enhance Cameroon’s energy security and economic growth while stabilizing regional fuel prices. Additionally, Seplat Energy Plc completed its $800 billion acquisition of ExxonMobil’s Nigerian onshore assets, doubling its production capacity to 120,000 barrels of oil equivalent per day. The deal underscores Seplat’s commitment to sustainable growth, environmental standards, and fostering relationships with government and local communities while leveraging MPNU’s robust asset portfolio to maximize stakeholder value. Together, these developments highlight Nigeria’s strategic importance in Africa’s evolving energy landscape.
Money Market
Market liquidity opened the day at ₦1.5 trillion short. The Open Buy Back (OBB) rate and the Overnight (OVN) rate closed at 32.54% and 32.92%, respectively.
We expect rates to hover around current levels.
Treasury Bills Market
The FGN Treasury Bills Market kicked off the week on a calm note. Again, the CBN issued an OMO auction announcement floating N600bn across two long tenor maturities. Stop rates printed at 23.95% and 23.98% with N1.6 trillion subscribed and alloted. Sequel to the auction, we saw the 9 Dec OMO bill trade at 23.20%. There was also an NTB auction this week. At the auction, the DMO allotted N527.84billion against N275.71 billion on offer. Total subscription stood at N907.85 billion. Stop rates remained unchanged on the 91-day and 182-day bills while the stop rate on the 364 day bill declined by 13bps to 22.80%. Sequel to the auction, we’ve seen the newly issued 364 day bill trade at 22.50% before retracing. Week-on-week, the average benchmark yield declined by 8bps to 25.62%
We expect a calm session as liquidity remains tight.
FGN Bond Market
The FGN Bonds Market witnessed little to no activity as sentiments remained weak. Nevertheless, trades were consummated on the 31s and 33s at 21.95% and 20.50%, respectively. We saw the 19.00% 2034 maturity bid at 20.85% and offered at 20.65%. In addition, the off the run 29 year bond was quoted 17.50/17.30. Week-on-week, the average benchmark yield appreciated by 5bps to 19.08%
We expect a quiet session as focus shifts to the bond auction.
FGN Eurobond Market
The FGN Eurobonds Market traded on mixed sentiments this week. The bears dominated as prices declined across the curve ahead of inflation data. The U.S CPI printed at 2.7% as expected, a 0.1% increase from 2.6% previous. The United States Producer Price Index rose by 0.3% vs 0.2% forecast while Unemployment claims 242k vs 221k forecast and 225k previous. Week-on-week, the average benchmark yield appreciated by 17bps to 9.20%
We expect a similar session.
Currency Market
The value of the Naira to the dollar declined by 33bps to close at ₦1540.00/$ at the Nigerian Foreign Exchange Market Window (NFEM).
Equities Market
The local bourse ended the day with the benchmark NGX All-Share Index (ASI) appreciating by 63bps to close at 99,378.06. Market capitalization also increased, closing at ₦60.25 trillion. Market breadth was positive at 2.4x, with 36 advancers and 15 decliners. This performance was driven by gains in ARADEL (+10.00%), IKEJAHOTEL (+10.00%) and CAVERTON (+10.00%), and losses in AUSTINLAZ (-10.00%), ABCTRANS (-8.00%), and ROYALEX (-7.69%).
Trading activity was robust on the day, with the volume of shares traded increasing by 9.07% to 534.05 million units, while the total value of shares traded increased by 5.29% to ₦7.43 billion. The most actively traded stocks by volume were JAPAULGOLD with 71.74 million units, ETRANZACT with 70.70 million units, and TANTALIZER with 57.30 million units. In terms of value, ARADEL led with ₦781.81 million, followed by OANDO at ₦732.25 million, and ZENITH ₦622.32 million.
Reflecting the day’s performance, the NGX All-Share Index reflected a 1-week gain of 1.29% and a 4-week gain of 2.18%, with an overall year-to-date gain of 32.90%. Other notable indices are the NGX Top 30 Index (+0.09%; +0.02% 1WK; +32.90% YTD), NGX Banking Index (+0.63%; +0.89% 1WK; 15.96% YTD), and NGX Oil & Gas Index (0.00%; +7.79% 1WK; +157.56% YTD).
