Oil prices have recovered since the initial slump following OPEC’s decision to increase production by 1mbpd. Oil futures gained 0.96% to trade at $75.45pb on June 26th, on trade war threats and lower Canadian output.
Although the details are yet to be disclosed, the implications of the expected increase in global output for Nigeria are limited. This is because the country will have more leeway to ramp up production to make up for the possible dip in prices.
Meanwhile, Nigeria’s largest company by market cap., Dangote Cement, is set to issue N150bn in commercial papers over the next three years. Part of the proceeds from the issue will be used to pay down expensive bank debt. This will free up liquidity that will most likely be channelled to MSME credit in the near term by the banks
The attached document contains an update on the global and domestic commodities market.
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