In a bid to support OPEC’s effort towards moderating the oversupply of oil in the global oil market, Nigeria may have agreed to limit its oil production to 1.8 million barrel per day.
A Bloomberg report quoting oil minister Emmanuel Kachikwu on Wednesday, discloses that the output limit would come into play when Nigeria can stably pump 1.8 million barrels a day. That’s about 100,000 barrels more than it’s currently producing. The country’s output has recovered this year after militant attacks had damaged export pipelines and other facilities.
“As a serious member of OPEC, we stand ready to support the cuts when we are sure that we can have a stable predictable production,” Kachikwu said. “You have to watch it for a couple of months to be sure that what you see as peace is in fact sustained.”
Recall that Nigeria and Libya were exempted from cuts agreed to by OPEC and other large producers in an effort to trim a global glut. OPEC decided late last year to reduce its output by 1.2 million barrels a day to 32.5 million starting Jan. 1.
Other producers including Russia joined the deal, which was extended through March 2018. Iran was allowed to raise production by 90,000 barrels a day as it was recovering from sanctions.
OPEC’s Secretary-General Mohammad Barkindo told Bloomberg Television on Wednesday at a conference in Istanbul that the group wants an “orderly recovery” in oil production from Libya, Nigeria and Iran, and as such, has a flexible output target under its cuts agreement to accommodate more crude from the three member nations.
Nigeria still produces below 1.8 million barrel per day
“We still are below the 1.8 million barrel a day benchmark set for us by OPEC,” Kachikwu said. “I think that over the next one or two months, hopefully, we can get to that point where we can say the recovery has been tested, it is systemic and predictable.”
Nigeria, which hasn’t been above that level since February 2016, has a capacity of 2.2 million barrels a day, according to data compiled by Bloomberg.
Nigeria may not be able to control the global oil price nor avoid the production cap by OPEC, but it is very expedient that the nation gets it acts together and ensure peace in the Niger Delta so as to boost its current production, at least to 1.8 million barrel per days.
What this Means for Nigeria:
This oil production cap would imply that Nigeria’s benchmark of 2.2 million barrels per day as stated in 2017 budget may no longer be feasible. The 2017 budget was based on the production of 2.2 million barrels per day at the reference price of $44.5. On the flip side, Nigeria would have to hope for a global oil price above the $44.5 set in the budget.
Revenue from oil which has been a major source on foreign earnings for the nation is expected to serve as a cushion to the estimate high capital expenditure in the budget.
Moreover, with this oil production cap, the FGN would have to further seek for an alternative means to finance the 2017 budget.
Twitter CEO auctions his first-ever tweet on Twitter, bidding at $2.5 million
Jack Dorsey is auctioning his first-ever tweet on a website that sells tweets as non-fungible tokens.
Twitter CEO, Jack Dorsey is auctioning his first-ever tweet on Twitter “just setting up my twttr” on a website that sells tweets as non-fungible tokens (NFTs).
The tweet was listed for sale on ‘Valuables by Cent’ – a tweets marketplace that was launched three months ago. The tweet was first made in March 2006
The tweet received offers as high as $88,888.88 within minutes of Jack tweeting a link to the listing on” Valuables by Cent” on Friday.
Currently, bidding has reached $2.5 million (€2.1 million) indicating the potential in selling virtual objects that have been authenticated through blockchain technology.
The highest bid for the tweet — $2.5 million — came from Bridge Oracle CEO Sina Estavi. It topped cryptocurrency pioneer, Justin Sun’s $2 million bid.
The final buyer of the tweet will receive a certificate, digitally signed and verified by Jack Dorsey, as well as the metadata of the original tweet. The data will include information such as the time the tweet was posted and its text contents. Most of this information, however, is already publicly available.
According to Valuables by Cent’s terms, 95% of a tweet’s sale will go to the original creator while the remainder will go to the website.
What you should know
- NFTs is a unique digital certificate that states who owns a photo, video, or other forms of online media.
- Dorsey’s 15-year-old tweet is one of the most famous tweets ever on the platform.
- Bidding had reached $2.5 million (€2.1 million) on Saturday, indicating the potential in selling virtual objects that have been authenticated through blockchain technology.
- More people are currently bidding their tweets on the platform.
Bamboo’s current rate for buying U.S Stocks weakens to N492/$1
Bamboo is currently offering its users a premium of more than 20% compared to the official exchange rate.
The fast-rising Nigerian stock broking application, Bamboo, is currently offering an exchange rate of N492 to the dollar.
About two weeks ago, the Nigerian stock trading app offered an exchange rate of about N484 to $1.
The green-colored trading app known for allowing local-based Nigerians to invest in stocks listed on the world’s biggest stock market (New York Stock Exchange and NASDAQ) is currently offering its users a premium of more than 20% compared to the official exchange rate set by the Nigerian apex bank.
That being said, Nairametrics’s most recent research observed Chaka. ng offers the lowest exchange rate charge of N480 to 1$, other Nigerian-based stock trading apps that include Trove and Risevest currently offer their clients N491.68 and N486 to $1 respectively.
In addition, other leading fintech platforms reviewed by Nairametrics also presently offer exuberant rates as high as about N519 to a dollar, thereby adding more transaction costs on a significant number of Nigerians hoping to trade such financial assets.
A growing number of Nigerians are currently increasing their exposure to the U.S stock market taking to the current bearish trend that is being witnessed in the Nigerian Equity market and growing urge in hedging against the weakening local currency.
Consequently, a lot of Nigerians are flocking the New York Stock Exchange (NYSE) on the account it has about 2,800 companies listed, while the NASDAQ has about 3,300 stocks listed. This gives Nigerian investors numerous options where they can invest their money. It is also why the US economy attracts billions of dollars in portfolio investments annually.
Bamboo is an investment platform that gives Africans real-time access to invest in or trade over 3,500 stocks listed on the American and Nigerian exchanges right from their smartphones or personal computer.
In partnership with US-based Drive Wealth LLC, Bamboo provides seamless, secure access to US and Nigerian securities.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- Seplat falls into a loss in FY 2020
- 2020 FY Results: Cornerstone Insurance Plc reports a 61.1% decline in profit
- Ellah Lakes increases operating expenses by 33.36% in HY 2020
- 2020 FY Results: Nigerian Breweries reports a 54.3% decline in profits in 2020
- Abbey Mortgage Bank projects N51.08 million profit in Q2 2020.