The Chief Executive Officer of Shoreline Group, Kola Karim, has urged the Nigerian Government to start paying more attention to the country’s abundant gas reserves, following the recent crash in global crude oil price.
Karim disclosed this yesterday when he appeared on CNBC Africa’s Power Lunch West Africa TV show to discuss how Nigeria and other top African crude producers can stay ahead, in view of the unfavourable oil price regime.
According to him, Nigeria’s abundant gas reserves would have been a “natural hedge” to take care of price fluctuations that have recently been witnessed in the international oil market. He said:
“We need to focus on our gas sector. The gas sector, today, would be a natural hedge to resist price fluctuation. Yes, even if we do not have the flexibility in our production profiling like Russia and Saudi Arabia if we are producing a lot of gas and exporting gas into neighbouring countries, that’s a dollar-earning position that will help support our natural position.”
He went further to explain that Nigeria really needs to act swiftly because the country has now found itself in a precarious position due to the current realities in the global oil market. According to him, never before has the world’s oil producers faced this type of uncertainty. According to him:
“Look, the world is facing a mega situation. It’s never been seen before. On the demand side, you have the biggest consumer – China, that has contracted and continues to contract because of the Coronavirus. Then on the other side of supply, you’ve got Saudi Arabia, a major producer. You’ve also got Russia, a major producer that is not OPEC and is refusing to work in concert with OPEC to stabilise oil prices. And then you’ve got America on the other side, the shell producers who have not relented in their production.
“So, you have a big problem. When you have not two elephants fight – you have three elephants fighting. You know what is going to suffer? Countries like Nigeria the smaller producers, because our budget is based solely on the foreign exchange income from oil.”
Already, the Nigerian Government is taking steps to scale down on the country’s N10.6 trillion 2020 budget, in response to the dramatic crash in global oil prices.
Reuters had quoted the country’s Finance Minister, Mrs Zainab Ahmed, as saying that talks had begun with the country’s President to this effect.
According to the Minister, “there will be reduced revenue on the budget and it will mean cutting the size of the budget.” Nigeria had based its ambitious 2020 budget upon an oil price of $57 per barrel. Unfortunately, Brent Crude, the global oil benchmark, has crashed down to $37.29 per barrel, according to latest trading figures provided by Oilprice.com.
You may watch the rest of Karim’s interview with CNBC Africa by clicking here.
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.