Agriculture reduces Nigeria’s dependence on oil sector
The Federal Government on Thursday, disclosed agriculture has reduced Nigeria’s dependence on oil sector in generating foreign exchange revenue. This was made known by the Minister of Agriculture and Rural Development, Dr Mohammed Abubakar, during the launch of ‘Technical Working Documents and Debriefing of Outcomes of Socio-economic Studies’ by International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) Nigeria held in Abuja.
Governor Sanwo-Olu Presents N1.388 Trillion for 2022 Budget
The Lagos State Governor, Babajide Sanwo-olu, has presented a 2022 budget of N1.388 trillion titled “Budget of Consolidation” to the state house of assembly, earmarking huge capital expenditure in the fiscal year to service key growth areas in order to consolidate the recovery of the State’s economy and positively transform residents’ livelihoods.
Crude oil price
Bearish sentiments are beginning to dominate the global crude oil market as Brent Crude dipped 2.51% in the early hours of Friday to trade at $80.16 per barrel, while West Texas Intermediate had already lost over 300 basis points as of the same time to trade at $75.9 per barrel. On the other hand, Natural gas gained by 1.62% to trade at $5.15, while heating oil dipped by 2.87% to trade at $2.315. OPEC basket gained 3.61% to trade at $81.75, while Nigeria’s crude, Bonny Light dipped 0.88% to trade at $80.74 per barrel.
Treasury Bills
Last week, the Nigerian Treasury Bills (“NT-Bills”) secondary market maintained its bullish streak, which was supported by the liquidity boost on Wednesday, which stood at N89.7bn long, as buying interest was recorded on all tenors. As a result, average yields declined 18bps W-o-W (Week-On-Week) from 5.29% to 5.11%, as investors cherry picked relatively attractive maturities across the curve.
FGN Bonds
The domestic bonds secondary market experienced slight sell-offs last week, as average yields increased 3bps W-o-W from 11.30% to 11.33%. In more detail, average yield across short-tenured bonds remained flat while medium and long-tenured bonds expanded 5bps and 2bps W-o-W respectively, with the 23-Jul-30 (+11bps W-o-W) and 20-Nov-29 (+8bps W-o-W) instruments recording the most sell offs.
FX Market
The exchange rate between the naira and the US dollar closed at N415.07/$1, at the Investors and Exporters (I&E) window. Naira closed flat against the US dollar on Thursday at N415.07/$1, the same as recorded in the previous trading session. This is despite a 59.7% decline in forex turnover at the official window from $243.34 million recorded on Wednesday to $98.07 million.
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