BusinessDay

Five things to know to start your Wednesday

Standard Alliance Insurance, Niger Insurance Plc lose Insurance certificate

Standard Alliance Insurance Plc, and Niger Insurance Plc got their certificates of registration cancelled yesterday by the National Insurance Commission (NAICOM).

According to NAN, the insurance regulatory body-NAICOM said that the cancellation will take effect from June 21.

The commission made this announcement through a statement issued by Rasaaq Salami, Head of Corporate Communications and Market Development.

He said that the commission had appointed Sanya Ogunkuade, Esq. of Plot 217, Upper Grace Plaza, Utako, Abuja as the liquidator for Niger Insurance Plc.

While Kehinde Aina, Esq., of Aina Blankson LP, 5/7, Ademola Street, Ikoyi, Lagos, is the liquidator for Standard Alliance Insurance Plc.

He advised all stakeholders to forward their enquiries to the respective receiver/liquidator for each company for their necessary action.

Ardova Plc, Matrix Energy Ltd, others win PPL

Ardova Plc, Matrix Energy Ltd, Sun Trust Oil Company Limited and 158 other companies were on Tuesday awarded Petroleum Prospecting Licences (PPLs) by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

According to NAN, Chief Timipre Sylva, the Minister of State for Petroleum Resources, said that the unveiling and licence presentation which took place in Abuja was part of the implementation of the Petroleum Industry Act (PIA), 2021.

Other successful companies to be given PPL are Deep Offshore Integrated Service Ltd., Island Energy Ltd., Sigmund Oil Field Ltd., Shafa Exploration and Production Company Ltd., Emadeb Energy Ltd., Zigma Ltd., Inland Basin Ltd., and Petraco Oil Ltd., among others.

The minister informed the public that out of the 665 entities that expressed interest in the exercise, 161 emerged as potential awardees, while out of the 57 fields, 41 were fully paid for.

He commended the management and staff of the NUPRC for ensuring the successful completion of the process, which began in 2020.

Read also:What the new prospecting licences mean for 57 marginal field investors

 

BoJ vows to maintain ultra-loose monetary policy

Haruhiko Kuroda, the Governor of the Bank of Japan (BoJ), has vowed to continue with its ultra-loose monetary policy of very low or even negative interest rates and others despite global inflationary pressure.

Kuroda said that the country was going to continue with its current policy, stressing that the country’s 15-year experience with falling prices is keeping wage growth checked.

Reuters reported that the country’s core consumer inflation hit 2.1 percent for two straight months in May, which is one of the lowest in the world. The bank, however, linked the rise in consumer inflation to rising energy prices.

The governor believes that core consumer inflation will remain around 2 percent for about a year before slowing to around 1 percent in the next fiscal year, which begins in April 2023.

According to the recording released by the Bank for International Settlements (BIS), he said, “Unlike other economies, the Japanese economy has not been much affected by the global inflationary trend, so monetary policy will continue to be accommodative.”

Brent crude picks steam

Brent crude futures picked up steam this morning, rallying to above $117 per barrel following a decision by the G7 group to place a price cap on Russian oil.

The price also responded to possible OPEC+ production constraints, which have elevated the risk of a market tightening.

According to trading economics, on the demand side, US officials’ positive discussions with China and India would allow them to buy oil at even cheaper prices, while the UAE Energy Minister said the nation was producing near-maximum capacity at the agreed quota with OPEC+.

Unfortunately, both Libya and Ecuador are facing production cuts during political unrest.

Meanwhile, with COVID-19 fears easing off in the world’s second-largest economy, there are hopes of a revival in demand as production begins to get back to the pre-lockdown period.

Economic concerns fail to drag US stock futures

Economic concerns over the future of the US manufacturing sector failed to drag major averages downward as they steadied in Asian trade this morning.

According to trading economics, futures contracts tied to the three major indexes traded flat to slightly positive.

At the end of regular trading on Tuesday, the Dow Jones dipped by 1.56 percent, the S & P 500 lost 2.01 percent, and the Nasdaq Composite fell by 2.95 percent.

On a sector-to-sector basis, shares of growth-oriented technology, which are investments that increase in value, led to the decline in the major indexes, while the recent increases in oil prices helped energy firms outperform the market.

Meanwhile, US Federal Reserve officials on Tuesday indicated that they will continue to support interest rate hikes to help bring inflation under control.

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