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Business News

Nigeria’s bonny light crude avoids price crash

Oil prices, particularly WTI, crashed below $0 during on Monday for the first time ever sending shock waves across the world. 



Crude Oil worker, OPEC, oil prices, Bulls hit back to support US crude oil amid panic sell- offs in global equity markets, Nigeria’s local oil players smashed by low crude oil prices

Prices of Nigeria’s bonny light crude oil products remained stable despite the oil price crashes widely reported yesterday. Oil prices, particularly WTI, crashed below $0 during on Monday for the first time ever sending shock waves across the world. 

The price of oil reported daily is sourced from the futures market which captures market prices of crude oil that are likely to be paid in future months. Despite the fall into negative territory for the WTI crude oil price, Nigeria flagships Qua Iboe, Bonny Light and Brass remained above $20 per barrel. As at Tuesday morning, the prices were as follows; 

Bonny Light – $20.88  

Brass River – $22.75 

Qua Iboe – $22.75 

READ MORE: Why is Nigeria not hedging its crude oil like Mexico?

The Central Bank publishes Bonny Light figures daily and is the main source of crude oil output from Nigeria. According to information from an oil and gas expert, each of these crude types is also associated with the export terminals. 

Bonny Light for example, is exported by Shell Terminal while Qua Iboe is exported via Mobile Terminal, Brass River crude is exported via Eni/Agip Terminal. Nigeria exports more of Bonny Light crude followed by Qua Iboe and then Brass. Local oil-producing firms such as Oando, Seplat all export via these terminals.  

READ ALSO: Nigeria’s Inflation rate jumps to 12.26% in March as recession looms

Nigeria typically benchmarks its budget against the Brent Crude which fell to $21.37 per barrel far lower than the $30 per barrel revised price and way off the $57/b price passed in the budget earlier in the year. Despite avoiding the crash of yesterday, Nigeria still retains unsold cargoes as demand remains low. Nairametrics reported earlier in the weak that the Crude OIl prices for its Bonny Light crude fell to as much as $12 per barrel as traders declined to purchase crude cargoes. The prices quoted by the market is thus not entirely reflective in all price offerings. 

READ MORE: Nigeria’s foreign debt has breached a 15-year trigger

Nigeria’s crude oil exports have been cut by over 400,000 b/pd following a decision by OPEC members to cut crude oil output. OPEC will be cutting about 9.7 million b/pd. Unfortunately, it is not enough as the Internal Energy Agency expects a demand gap of about 28 million b/pd signaling that the OPEC and G7 landmark deal may not be enough to stabilize prices yet alone increase it. The result was a record fall into zero territory for the first time ever.  



Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

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Tech News

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.



Square buys $50 million worth of Bitcoins, Twitter warns political figures to abstain from fake, misleading statements, Has Twitter's Jack Dorsey changed the popular narrative attached to Nigerians?, Twitter forecasts future drop in revenue after milestone record in 2019 Q4 , Twitter founder, Jack Dorsey invest N2.3 million in Nigerian startup, DevCareer , Some Verified accounts may not be able to tweet, as Twitter freezes password reset to address cyberattack

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.

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Stock Market

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.

READ: Nigerian Bitcoin P2P surges by 15% since CBN Crypto ban

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.

READ: Many Nigerians are trooping into foreign stock markets

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.

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