Drop in Oil Price May Hamper Loans Repayment in Banking Sector

The continuous slide in the price of crude oil, which has led to lower revenues to Nigeria, may also result in strains in the credit repayment ability of upstream oil companies, a report has stated.

The situation may also lead to delay in payments to contractors as well as a possible cancellation or delay of contracts or planned projects in the country.

Renaissance Capital, a financial advisory and investment company stated this in

Naira touches record low after CBN devalues currency

The naira touched a record low against the dollar on Wednesday, a day after the Central Bank of Nigeria (CBN) devalued the currency, and it was trading lower than the bank’s target band even after rebounding.

CBN devalued the naira by 8 percent and raised interest rates sharply on Tuesday, as it sought to stem losses to its foreign reserves from defending the currency against weaker oil prices.

The naira fell to a record low of 178.85 to the dollar shortly after the market opened, but it rebounded to firm almost 1 percent to 177.05 after two oil companies sold dollars.

That level was still below the new bank’s target band of 5 percent plus or minus 168 to the dollar after the devaluation.

Total sold $20 million while Shell sold an undisclosed amount of

Bajaj Auto, Bharti Airtel shares fall after Nigeria devalues naira

Bajaj Auto Ltd fell as much as 2.7% on Wednesday, while Bharti Airtel Ltd dropped 2.9% after Nigeria’s central bank devalued its currency naira by 8% and raised interest rates sharply on Tuesday.

Nearly 12 percent of Bajaj Auto’s revenues come from Nigeria.

Bharti Airtel entered Africa in 2010 by