Business
Nigerian Crude Oil Prices Remain Steady at $75 Despite Production Challenges
Nigerian crude oil is holding steady at approximately $75 per barrel, despite recent fluctuations in global benchmark crude prices, which fell below $70 per barrel. The country’s oil production remains unstable, adding economic pressure.
Nigeria’s light-sweet crude oil blends, known for their low sulfur content and high quality, continue to attract traders. Key oil blends from Nigeria—such as Brass River, Bonny Light, and Qua Iboe—are trading above $74.50 per barrel, outperforming the Brent crude contract.
However, Nigeria’s oil output is inconsistent. According to the Organisation of the Petroleum Exporting Countries (OPEC) September Monthly Oil Market Report, production increased slightly from 1.307 million barrels per day in July to 1.352 million barrels per day in August. This 45,000-barrel-per-day rise contrasts with the Federal Government’s claims of production nearing 1.6 million barrels per day. Earlier this year, Nigeria’s output fell to 1.25 million barrels per day in May, despite the Nigerian National Petroleum Company Limited’s assertion of nearly 1.7 million barrels per day. OPEC’s data showed a decrease from 1.28 million barrels per day in April to 1.25 million barrels per day in May.
Global oil prices saw a rebound of over 1% on Wednesday, recovering from previous declines. Concerns over Hurricane Francine potentially disrupting U.S. oil production outweighed fears of weakening global demand. As of 0704 GMT, Brent crude futures increased by 84 cents, or 1.2%, to $70.03 per barrel, while U.S. crude futures rose by 81 cents, or 1.2%, to $66.56 per barrel.
Earlier in the week, both benchmarks experienced nearly a $3 drop, with Brent hitting its lowest level since December 2021 and West Texas Intermediate (WTI) reaching a low not seen since May 2023. This decline followed OPEC’s revision of its demand forecasts for 2024 and 2025, reducing the global oil demand growth estimate for 2024 from 2.11 million barrels per day to 2.03 million barrels per day, and for 2025 from 1.78 million barrels per day to 1.74 million barrels per day.
Meanwhile, China’s daily crude oil imports reached a record high last month, although they were 7% lower than the previous year and 3% below the same period last year, according to customs data and Reuters reports.
Former Kaduna Central Senator Shehu Sani has criticized the World Bank for worsening Nigeria’s economic difficulties. In a post shared on X, Sani accused the institution of projecting that Nigeria’s hardship would extend for another 15 years before the country could reach a better economic future. He questioned how many Nigerians would be left to enjoy that future, and how many African nations the World Bank has successfully helped to prosperity.
Sani’s remarks follow the World Bank’s latest *Africa’s Pulse* report, which forecasts that the Nigerian Naira will be among the worst-performing currencies in Sub-Saharan Africa by August 2024. The report placed the Naira’s decline alongside that of the Ethiopian Birr and South Sudanese Pound.
Heirs Insurance Group (HIG) recently announced impressive financial results for the 2023 fiscal year, marking significant growth across all key metrics. The Group’s Gross Written Premium (GWP) surged by 59.3%, from N19.9 billion in 2022 to N31.7 billion in 2023. This remarkable performance underscores HIG’s resilience and operational efficiency, further solidifying its position as one of Nigeria’s fastest-growing insurance firms.
Heirs General Insurance (HGI) saw a 77% increase in GWP, reaching N12 billion in 2023. HGI’s profit before tax (PBT) also rose by 203%, reflecting the company’s effective cost management. Similarly, Heirs Life Assurance (HLA) reported a 71% GWP increase and a staggering 395% rise in PBT. Both companies have demonstrated a strong commitment to customer satisfaction, disbursing billions in claims.
Beyond financial success, HIG actively engages in corporate social responsibility (CSR) projects, contributing over N100 million to education, community development, and financial literacy. With plans for future expansion and innovation, HIG is poised to remain a key player in Nigeria’s evolving insurance market.
Federal Capital Territory (FCT) Minister, Nyesom Wike, has called on Nigerians to fulfill their tax obligations, emphasizing that government revenue is essential for delivering social services. Wike made this appeal during the inaugural Abuja Business and Investment Summit, held in Abuja on Wednesday.
Speaking on the summit’s theme, “Optimising Investment Through Partnerships,” Wike stressed the importance of collaboration to generate investment opportunities. He dismissed the misconception that the government does not need revenue, explaining that taxes are crucial for funding public services.
Wike reiterated that both investors and the government must benefit from such partnerships, ensuring that both parties “go home smiling” through a fair exchange of services and taxes.
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