Nigeria To Launch Crude Buying and selling at its Commodity Trade

Africa’s largest oil producer, Nigeria, plans to supply as much as 20% of its crude oil manufacturing for buying and selling on its commodities trade, Akinsola Akeredolu-Ale, the chief government of the Lagos Commodities and Futures Trade, advised Bloomberg in an interview printed on Friday.

The official didn’t elaborate on when the trade’s first-ever crude buying and selling would start.

The objective of the launch of crude oil buying and selling is to develop entry to financing for the oil and gasoline business, on which Nigeria depends for many of its international foreign money earnings.

The Lagos Commodities and Futures Trade is working with the native Securities and Trade Fee to satisfy necessities for buying and selling of crude, the trade’s CEO mentioned.

“The consideration is that 10 to twenty% of Nigeria’s crude oil manufacturing be provisioned for buying and selling on the ground of the Lagos Commodities and Futures Trade,” Akeredolu-Ale advised Bloomberg.

Presently, the five most popular commodities traded on the Lagos Commodities and Futures Trade are gold, paddy rice, cashew, cocoa, and sesame seed.

OPEC member Nigeria goals to spice up its crude oil manufacturing within the coming months and years.

Oil theft and pipeline vandalism have lengthy plagued Nigeria’s upstream oil and gasoline business, driving majors overseas and sometimes leading to pressure majeure on the key crude oil export terminals.

Nigerian oil manufacturing has began to get better in latest months and hit in February its highest level in more than three years amid a concerted effort to crack down on focused assaults and arranged theft rings.

Earlier this week, the Nigerian Upstream Petroleum Regulatory Fee (NUPRC) mentioned that Nigeria’s crude oil reserves had increased by 1 billion barrels whereas pure gasoline reserves have jumped by 2.573 trillion cubic ft (TCF). As of January 1, 2024, Nigeria’s mixed confirmed reserves of crude oil and condensate stood at 37.50 billion barrels, whereas the reserves of related pure gasoline and non-associated gasoline stood at 209.26 trillion cubic ft, said NUPRC’s chief government Gbenga Komolafe.

By Charles Kennedy for Oilprice.com

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