Naira drops to 498 as CBN resumes dollar sales
The naira fell against the United States dollar at the parallel market to 498 on Thursday, from 497 on Wednesday. This came hours after the Central Bank of Nigeria resumed dollar sales to Bureau De Change operators through Travelex.
Before dropping to 498, the naira had appreciated to 495/dollar early on Thursday. The currency traded flat at 497/dollar consecutively between Monday and Wednesday.
Investors’ Interest in FGN Bond Rise, As DMO Raises N214.9bn
Debt Management Office (DMO) has raised N214.95 billion at the first bond auction for the year, 65.34 per cent above N130 billion which it set out to raise having sold the debt instruments at yields below the current inflation rate.
With inflation having risen to 18.55 per cent as at December, the DMO sold the three FGN bonds at yields within 16 per cent although the range of bids was between 14 and 18 per cents. Investors’ interest in the federal government bonds had spiked compared to what it was last month when subscription level had waned and investors quoted for yields within 16 and 19 per cents.
Govt won’t support power sector financially, says Fashola
The request for an intervention by the Federal Government in addressing the N1tn shortfall in the electricity industry’s revenue will not be granted as the Minister of Power, Works and Housing, Babatunde Fashola, has stated that the government will not provide monetary assistance to operators in the power sector.
According to Fashola, the Federal Government had earlier provided N213bn as subsidy to the operators and will not do so again.
Emefiele: CBN’s Policies in Best Interest of Nigerians At This Time
The Governor of Central Bank of Nigeria, Mr Godwin Emefiele, yesterday offered insights into the prevailing economic crisis in the country, explaining that it was caused by the nation’s failure to diversify the base of its economy.
The CBN chief, who spoke in Abuja at the Annual Media Trust Dialogue, with the theme, “Beyond Recession: Towards a Resilient Economy,” also defended the monetary policies of the apex bank, saying they were made in the best interest of majority of Nigerians.
Buhari begins 10-day working vacation, hands over to Osinbajo
President Muhammadu Buhari yesterday wrote to the National Assembly that he would be embarking on working vacation from January 23 to February 6, 2017. The President further said that during the 10-day leave, Vice President Yemi Osinbajo would act as president.
Although the letter, which was read during Senate plenary by Senate President Abubakar Bukola Saraki, did not indicate that the leave was to seek medical attention, presidential spokesman, Femi Adesina had explained that the president would undergo routine medical check up.
Kerosene fully deregulated, says PPPRA
The Petroleum Products Pricing Regulatory Agency on Thursday said that the kerosene market had been fully deregulated and that there was no plan to increase petrol price.
Its reaction on kerosene was based on the recent astronomical hike in the price of the product and calls by consumers as well as operators for an intervention by the Federal Government.
29 States generated N318bn as IGR in H1-NBS
THE National Bureau of Statistics, NBS, said that 29 states of the federation generated N318 billion as Internally Generated Revenues (IGR) in the first half of 2016 (from January to June).
According to the report, Lagos State recorded the highest IGR figure of about N150.6 billion in the period under review, Ogun State was next with N28.15 billion, Delta State with 22.45 billion, while Nasarrawa State generated the lowest revenue in the same period under review at N1.05billion
SEC, EFCC to check capital market abuse
The Securities and Exchange Commission has signed a Memorandum of Understanding with the Economic and Financial Crimes Commission to check abuses in the capital market. The MoU, according to a statement issued by SEC on Thursday in Abuja, is part of measures to ensure an effective policing of the capital market.
It said the pact would enable both agencies to promote the efficient investigation and conclusion of all cases reported by either institution to each other, promote the integrity, efficiency and soundness of the Nigerian capital market and the economy in general.
Nigeria’s crude oil output increases by 403,900bpd
Nigeria’s crude oil output increased by about 403,900 barrels per day (bpd) to 1.940 million bpd in December 2016, above November levels of 1.536 million bpd, according to the current figures released by Organisation of the Petroleum Exporting Countries (OPEC).
Compared to third quarter 2016, 1.2 million bpd output, the boost in production is attributed to Federal Government’s overtures to militant groups in the oil-rich Niger Delta region, to pave the way for a comprehensive dialogue with a view to resolving all the issues.
We’ve no choice but to borrow $30bn — Adeosun
The Minister of Finance, Mrs. Kemi Adeosun, on Thursday said that the inability of the Federal Government to generate enough revenue to meet its obligations had left it with no other choice than to turn to international financial institutions for loans to finance critical infrastructure projects.
She said that with a huge monthly personnel expenditure of about N210bn, coupled with additional debt service burden of N120bn,making a total of N330bn every month, it had become difficult with the low receipts from oil to generate enough revenue to meet these obligations as well as fund capital projects.
PPPRA Refutes Rumour of Fuel Price Hike
The body charged with the responsibility of regulating the price of petroleum products in Nigeria, the Petroleum Products Pricing Regulatory Agency (PPPRA) yesterday denied speculations of fuel price increase currently making rounds.
The agency in a press statement signed by its spokesperson, Lanre Oladele assured Nigerians of the availability of the products, stressing that stories making the rounds in the media of possibility of price hike due to outstanding debt and foreign exchange to fund importation are misleading.
Tomato paste manufacturers tackle CBN over FX policy
THE Union of Tomato Paste Manufacturers in Nigeria has raised alarm over the danger of the foreign exchange policy on the industry. They said that the once vibrant industry might cease to exist next year if the Central Bank of Nigeria (CBN) did not amend its policy on forex to exclude triple concentrate tomato paste from the scope of the 41 items under the restricted list.
Economic recovery plan’ll take Nigeria out of recession — Udoma
The effective implementation of the Economic Recovery and Growth Plan of the Federal Government, which is expected to be launched next month by President Muhammadu Buhari, will enable the country get out of economic recession this year, the Minister of Budget and National Planning, Senator Udo Udoma, has said.
Udoma gave the assurance in Abuja on Thursday during a meeting with an 11-man team of the National Executive Council of the Nigerian Institute of Quantity Surveyors led by its President, Mrs. Mercy Iyortyer.
‘Nigeria may devalue naira this year’
Nigeria will devalue its currency, the naira, later this year in an effort to improve liquidity and close the gap between the official and exchange parallel markets, a Reuters poll has shown.
That expectation by seven of the nine economists polled this week comes even though Central Bank of Nigeria (CBN) Governor Godwin Emefiele has said he would not devalue the naira. An analyst and investor at Rich Management in Nairobi. Aly-Khan Satchu, said: “The possibility of a devaluation is certain; the question is the timing.
FG bars MDAs from spending Internally Generated Revenues
To stop the high incidence of unremitted operating surpluses that stood at N450bn as of last year, the Federal Government has barred its Ministries, Departments and Agencies from spending Internally Generated Revenues that are not appropriated in their annual budgets.
Also, declaring deficits will no longer provide an escape route for the MDAs to avoid payment of operating surpluses, investigation has shown.
Electricity sector records first total collapse in 2017
NIGERIA electricity sector recorded zero power supply across the country, yesterday evening at 6.0 pm, due to total system collapse, with average power generation crashing to 1, 618 megawatts hour (MWh), down from 2, 904 MWh generated just before the system collapsed dropping generation to zero megawatts.
CBN gov, Atedo Peterside clash over forex policy
The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele; and the Chairman, Stanbic IBTC Bank Plc, Mr. Atedo Peterside, on Thursday disagreed over whether the flexible foreign exchange policy of the apex bank had been able to address the foreign exchange challenges in the country or not.
They both spoke in Abuja at the 14th Daily Trust Dialogue, which had as its theme: ‘Beyond recession: Towards a resilient economy’.