Think Thursday - Nigeria Seeks Higher Oil Quota Amid Global Supply Strains; U.S. Sanctions Drive 5% Crude Rally.
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Market Overview
Good evening and welcome to today’s Market Kick-Off. Nigeria’s economy continues to attract strategic investment and reforms, from the West African Cotton Company Limited (WACOT)’s €1.26million farmer empowerment grant to the $1billion Lagos port modernization and growing integration of digital payment systems. However, rising petrol imports despite local refining and Nigeria’s push for a higher Organization of the Petroleum Exporting Countries (OPEC) quota underscore ongoing energy and fiscal challenges.
Nigerian News & Market Update
Nigeria imports 15billion litres of petrol despite Dangote refinery output:
Despite increased local refining, Nigeria still imported 69% of its petrol between August 2024 and October 2025, though Dangote Refinery is steadily boosting domestic supply and reducing import dependence. - Punch
Nigeria Seeks Higher OPEC Quota to Boost Hydrocarbon Revenue:
Nigeria plans to seek a higher Organization of the Petroleum Exporting Countries (OPEC) production quota in November to boost oil revenue and align with its 2.5 mbpd target by 2026, despite ongoing theft, vandalism, and output shortfalls. - dmarketforces
FG approves $1billion modernization project for Lagos ports:
The Federal Government approved a $1 billion Lagos port modernisation project and began similar upgrades nationwide to boost efficiency, capacity, and maritime competitiveness. - Vanguard
Treasury Bills yield ticks upwards on CBN’s increased supply:
Nigeria’s treasury bill yields rose across all tenors as higher CBN supply allowed investors to bid for better returns amid expectations of future rate declines. - Businessday
FirstBank Integrates PAPSS Into LIT App For Seamless African Payments:
FirstBank integrated the Pan-African Payment and Settlement System (PAPSS) into its LIT app, enabling instant local-currency cross-border payments across Africa. - Leadership
€1.26m Grant: WACOT to empower 3,500 sesame farmers:
The West African Cotton Company Limited (WACOT) secured a €1.26million grant from DEG Impulse to empower 3,500 sesame farmers in Nigeria with organic and climate-resilient farming support. - Punch
Nigeria Sectoral Indices Performance
The table below shows that the NGX Industrial Goods (+3.09%) and Oil/Gas (+1.13%) sectors led daily gains, while Banking (-1.06%) and Insurance (-1.27%) declined. Broad market indices, including the NGX 30 and NSE ASI, advanced about 0.5% day-on-day. Year-to-date, the Lotus Index (+96.44%) and Insurance Index (+75.86%) remain the strongest performers on the exchange.
Fixed Income (FGN Bonds)
NTB Auction Result
Global News & Market Update
US sanctions Russian oil majors over Ukraine, prompting jitters in India and China:
President Trump imposed sanctions on Russia’s top oil firms, Rosneft and Lukoil, demanding an immediate Ukraine ceasefire, driving oil prices up 5% and prompting India and China to curb Russian imports. - Reuters
OPEC ready to raise oil output if required after US sanctions on Russia, Kuwaiti minister says:
OPEC signaled readiness to boost oil production further to offset market shortages after U.S. sanctions on Russian oil majors drove prices up. - Reuters
Ukraine starts tapping gas reserves amid jump in Russian attacks, data shows:
Ukraine has started withdrawing gas from storage as intensified Russian attacks cripple its energy infrastructure and cut domestic production by over half. - Reuters
China state oil majors suspend Russian oil buys due to sanctions, sources say:
Chinese state oil firms and Indian refiners have halted or cut Russian oil imports after U.S. sanctions on Rosneft and Lukoil, threatening Moscow’s revenues and tightening global supply. - Reuters
US tariffs to slow UK economy, lower inflation, BoE’s Dhingra says:
Bank of England’s Swati Dhingra warned that higher U.S. tariffs and lingering Brexit effects are slowing UK growth and could exert downward pressure on inflation over time. - Reuters
Canada’s inflation rate rises in September on smaller drop in gasoline prices:
Canada’s inflation rose to 2.4% in September, driven by higher food and rent costs and a slower drop in gasoline prices, strengthening expectations of another Bank of Canada rate cut. - Reuters
Indices, Commodities & Currencies
The table below depicts that the Global equities advanced broadly, with major indices like the Dow Jones, S&P 500, and Nikkei posting modest gains. Most Energy prices surged, as WTI and Brent crude about (+5%), while natural gas edged lower. Precious metals strengthened, agricultural commodities were mixed, and major currencies traded largely stable.
Fixed Income (USA Bonds)
Conclusion
Nigeria’s outlook remains cautiously positive, driven by investment in agriculture, infrastructure, and fintech, though fuel import reliance and oil sector issues persist. Globally, sanctions on Russian oil have lifted crude prices and disrupted trade flows, prompting OPEC’s readiness to stabilize supply. Overall, both domestic and global markets face short-term volatility amid shifting energy and inflation dynamics.
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