Economic News Update

Economic News Update: 25th January, 2017

news-brief

Mutual Benefit Assurance Plans to Invest Heavily in Technology

Mutual Benefit Assurance plc, said it plans to invest heavily in technological development in order to build innovative customer- Centric products that will meet the needs of its existing and potential customers and increase its market share in the current business year.

The Company said this forms part of its strategic five-year plans aimed at making the company number one insurance company in Nigeria by 2021.

Read More

Re: Verification: Is PTAD playing politics with pensioners’ income?

DURING a visit to her office in Abuja by the Executive Secretary of the Pension Transitional Arrangement Directorate, PTAD, Mrs. Sharon Ikeazor, the Senior Special Assistant to the President on Foreign Affairs and Diaspora Mrs. Abike Dabiri-Erewa, was greeted with the news that the nation’s pension scheme will now be extended to Nigerians in the Diaspora who had worked diligently and had served their country but relocated to different corners of the world after retirement.

Read More

Cutting manufacturing costs with renewable energy solutions

With the impact of energy costs on the productive sector becoming unbearable, exploring clean, sustainable alternative energy source has become attractive to operators in the value-chain industry, especially if they hope to remain competitive in the global market.

Indeed, estimates from the Manufacturers Association of Nigeria (MAN) showed that operators spent about N63 billion on providing alternative power to their production plants in the first half of 2016, with collated data for the second half showing a triple-fold rise in the figure due to higher energy costs within the period.

Read More

Banks’ bad loans hit N856.9b, says report

Banks’ assets have depreciated in the last two years, with provisions for Non Performing Loans (NPLs) hitting N856.9 billion, a financial market report has said.

The report by the investment and research firm Afrinvest West Africa Plc was released yesterday. It said provisioning for the NPLs, which rose 3.1 times from N280.4 billion in December 2014 to N856.9 billion last August, trimmed qualifying capital for mid to small-sized banks. The high concentration of forex denominated loans has nominally increased risk weighted assets following pressure on forex rate, it said.

Read More

CBN Includes Power Firms in 60% FX Allocation, Retains MPR at 14%

Desirous of revamping the country’s ailing power sector, the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) yesterday told commercial banks and other authorised dealers in the foreign exchange (FX) market to include electricity companies in its FX allocation policy, which provides that 60 per cent of total FX inflows from all sources (interbank inclusive) should be channelled to the manufacturing sector.

Read More

Nigeria’s Internet Users Drop By 1.7m In 3 Months

About 1.7 million Nigerians have stopped using the internet in the last three months according to statistics from the Nigerian Communications Commission (NCC). Between September and December 2016, the figures showed a steady decline in the number of people that subscribed to internet via the four top mobile service providers.

Closing September at 93.5 million users, the downward movement began in October as it dropped to 93.1, declining by over 400,000 users. By November, the figure of internet users had dropped to 92.4 million, while the year was wrapped up with a further decline to close at 91.8 million by December 2016.

Read More

Power Gencos May Soon Pack up Due to Diverse Challenges, Elumelu Warns

The Chairman of Transcorp Ughelli Power, Mr. Tony Elumelu, has said the Nigerian power sector is abourt to collapse as operators reel under various operational challenges which include unpaid bills for supplies, and foreign exchange differentials, warning that the generation companies (Gencos) may not be able to hold up for too long before giving up.

Speaking in an interview with CNBC which THISDAY monitored yesterday in Abuja, Elumelu said the geberation companies (Gencos) were currently subsidising electricity generation in Nigeria.

Read More

Global energy demand to increase by 40% — OPEC

THE Organisation of Petroleum Exporting Countries, OPEC, has said that the total global primary energy demand will rise by 40 percent or 108.2 million barrel of oil equivalent per day (mboe/d), by 2040. The sharpest rise would be recorded in developing countries.

In its world output report for 2016, OPEC stated: “Developing countries’ energy demand will increase by more than 100 mboe/d from 2014 to 2040 compared to energy demand growth of 3.3 mboe/d in the OECD regions and 4.3 mboe/d in Eurasia.

Read More

NIWA to concession four river ports

The National Inland Waterways Authority (NIWA) is inching closer to the final concessioning of the Onitsha, Lokoja, Baro and Oguta River ports. The Managing Director, NIWA, Boss Mustapha recently confirmed the receipt of certificate of compliance from the Infrastructure Concession Regulation Commission (ICRC) to go ahead with the concessioning process.

The concessioning will allow for private sector management and trigger improved utilisation of the inland waterways for transportation and easy conveyance of goods.

Read More

Strengthening Capital Market Regulation

The Nigerian capital market has continued to suffer the negative impact of the global financial crisis   of 2009.  Since that crisis, the market is yet to recover and enjoy high patronage as many investors remained dazed by the losses they suffered. In fact most investors have vowed not to return to the market. However, regulators and some stakeholders have been making efforts to regain the confidence of investors.

Read More

General Electric to invest in 3 refineries

The Federal Government’s plans to boost local refining of petroleum products brightened yesterday as General Electric (GE), a United States-based multinational company has proposed to invest and revamp the ailing Port Harcourt, Warri and Kaduna refineries.

GE, in a presentation to the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, and the management of the corporation stated that the company’s teams of partners, including its consortium involving engineering, procurement and Construction (EPC) partners, off-takers, traders and some financiers would be engaged in the initiative.

Read More

Rising Inflation Worsens Nigeria’s Misery Index

The sustained increase in the consumer price index (CPI), which is used to gauge inflation in the country has worsened misery index in Nigeria, a report by the Financial Derivatives Company Limited has stated.

Using the third quarter 2016 unemployment and underemployment rate of 13.9 per cent and 19.7 per cent (the most recent published figures), and December’s inflation of 18.55 per cent, Nigeria’s misery index is 52.15.

Read More

$28.9b reserves: CBN warns against reckless forex spending

With Nigeria’s foreign reserve standing at $28.9 billion, the Central Bank of Nigeria (CBN) has warned against reckless depletion of the kitty.

Addressing reporters at the end of the bi-monthly Monetary Policy Committee (MPC) meeting in Abuja yesterday, CBN Governor, Godwin Emefiele said the reserves today stands at $28.9 billion. “The fact that we have began to see some accretion to the reserve does not mean we should be reckless,” he warned.

Read More

Stockbrokers: Why Govt Must Privatise Assets through Capital Market

Stockbrokers have insisted that the federal government must privatise any of its assets through the nation’s capital market for the benefits of all stakeholders.

Given the current economic recession, it has been said that the federal government needs to sell some of its assets that are not efficiently run and are constituting drain on its finances. Although the government is yet to decide which of the assets to privatise, it is one of the options economic and financial experts have proffered as a way out of the economic recession.

Read More

How Nigeria can benefit from WTO TFA ratification

Except Nigeria addresses challenges within its business environment, especially in the area of infrastructure, ratifying trade deals may be to the disadvantage of operators due to lack of competitiveness. This was the view of President, Manufacturers Association of Nigeria (MAN), Dr. Frank Jacobs, and other operators while speaking on the issue of trade facilitation.

According to the real sector operators, anything that will improve ease of doing business is welcome considering the challenges being encountered in the productive sector.

Read More

FG Moves to Restructure BOI, BOA

The federal government has inaugurated the National Council on Privatisation (NCP) Steering Committee on the Restructuring and Recapitalisation of the Bank of Industry and the Project Delivery Team to revitalise the operations of the Bank of Agriculture.

Inaugurating the Steering Committee and Project Delivery Team on behalf of the Vice President, Minister of Agriculture and Rural Development, Chief Audu Ogbeh, who chairs the Committee, informed that the approach is to make the Bank of Agriculture more responsive to its mandate of serving as a veritable platform for providing loans to MSMEs, rural farmers, cooperatives and agro-allied industries, among others.

Read More

FG targets 2000mw from solar energy –Onu

The Federal Government has concluded arrangement to generate at least 2000 megawatts of solar energy, Minister of Science and Technology, Dr. Ogbonnaya Onu has said. Onu, who addressed a World press conference on the outcome of his recent tour to the 7th General Assembly of the International Renewable Energy Agency (IRENA), in Abu Dabi, United Arab Emirate and Ethiopia, said out of the 2000 megawatts to be generated this year, 1000 will be off grid while the other 1000mw will be on grid.

He disclosed that the world for the first time spent about $300 billion in 2016 to promote renewable energy, while countries were also increasing percentage of contributions to their energy mix. IRENA is an inter-governmental organization involving many countries from all the continents that emphasise the importance of renewable energy. Aside ensuring the shift from fossil fuels to renewable energy, IRENA is also promoting the use of bio-energy, ocean, solar, Geo-thermal, hydro power energy.

Read More

NAICOM to Undertake Verification of Capital Resources, Assets of Insurance Institutions

The National Insurance Commission (NAICOM) has said it will undertake a verification of the Capital resources of all insurance companies in the country in the first quarter of 2017.

The commission, disclosed this in a circular titled “Statement of NAICOM’s Regulatory Priorities for the year 2017” sent to chief executive officers and boards of insurance institutions.

Read More

Comment here

Economic News Update

Economic News Update: 25th January, 2017

news-brief

Mutual Benefit Assurance Plans to Invest Heavily in Technology

Mutual Benefit Assurance plc, said it plans to invest heavily in technological development in order to build innovative customer- Centric products that will meet the needs of its existing and potential customers and increase its market share in the current business year.

The Company said this forms part of its strategic five-year plans aimed at making the company number one insurance company in Nigeria by 2021.

Read More

Re: Verification: Is PTAD playing politics with pensioners’ income?

DURING a visit to her office in Abuja by the Executive Secretary of the Pension Transitional Arrangement Directorate, PTAD, Mrs. Sharon Ikeazor, the Senior Special Assistant to the President on Foreign Affairs and Diaspora Mrs. Abike Dabiri-Erewa, was greeted with the news that the nation’s pension scheme will now be extended to Nigerians in the Diaspora who had worked diligently and had served their country but relocated to different corners of the world after retirement.

Read More

Cutting manufacturing costs with renewable energy solutions

With the impact of energy costs on the productive sector becoming unbearable, exploring clean, sustainable alternative energy source has become attractive to operators in the value-chain industry, especially if they hope to remain competitive in the global market.

Indeed, estimates from the Manufacturers Association of Nigeria (MAN) showed that operators spent about N63 billion on providing alternative power to their production plants in the first half of 2016, with collated data for the second half showing a triple-fold rise in the figure due to higher energy costs within the period.

Read More

Banks’ bad loans hit N856.9b, says report

Banks’ assets have depreciated in the last two years, with provisions for Non Performing Loans (NPLs) hitting N856.9 billion, a financial market report has said.

The report by the investment and research firm Afrinvest West Africa Plc was released yesterday. It said provisioning for the NPLs, which rose 3.1 times from N280.4 billion in December 2014 to N856.9 billion last August, trimmed qualifying capital for mid to small-sized banks. The high concentration of forex denominated loans has nominally increased risk weighted assets following pressure on forex rate, it said.

Read More

CBN Includes Power Firms in 60% FX Allocation, Retains MPR at 14%

Desirous of revamping the country’s ailing power sector, the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) yesterday told commercial banks and other authorised dealers in the foreign exchange (FX) market to include electricity companies in its FX allocation policy, which provides that 60 per cent of total FX inflows from all sources (interbank inclusive) should be channelled to the manufacturing sector.

Read More

Nigeria’s Internet Users Drop By 1.7m In 3 Months

About 1.7 million Nigerians have stopped using the internet in the last three months according to statistics from the Nigerian Communications Commission (NCC). Between September and December 2016, the figures showed a steady decline in the number of people that subscribed to internet via the four top mobile service providers.

Closing September at 93.5 million users, the downward movement began in October as it dropped to 93.1, declining by over 400,000 users. By November, the figure of internet users had dropped to 92.4 million, while the year was wrapped up with a further decline to close at 91.8 million by December 2016.

Read More

Power Gencos May Soon Pack up Due to Diverse Challenges, Elumelu Warns

The Chairman of Transcorp Ughelli Power, Mr. Tony Elumelu, has said the Nigerian power sector is abourt to collapse as operators reel under various operational challenges which include unpaid bills for supplies, and foreign exchange differentials, warning that the generation companies (Gencos) may not be able to hold up for too long before giving up.

Speaking in an interview with CNBC which THISDAY monitored yesterday in Abuja, Elumelu said the geberation companies (Gencos) were currently subsidising electricity generation in Nigeria.

Read More

Global energy demand to increase by 40% — OPEC

THE Organisation of Petroleum Exporting Countries, OPEC, has said that the total global primary energy demand will rise by 40 percent or 108.2 million barrel of oil equivalent per day (mboe/d), by 2040. The sharpest rise would be recorded in developing countries.

In its world output report for 2016, OPEC stated: “Developing countries’ energy demand will increase by more than 100 mboe/d from 2014 to 2040 compared to energy demand growth of 3.3 mboe/d in the OECD regions and 4.3 mboe/d in Eurasia.

Read More

NIWA to concession four river ports

The National Inland Waterways Authority (NIWA) is inching closer to the final concessioning of the Onitsha, Lokoja, Baro and Oguta River ports. The Managing Director, NIWA, Boss Mustapha recently confirmed the receipt of certificate of compliance from the Infrastructure Concession Regulation Commission (ICRC) to go ahead with the concessioning process.

The concessioning will allow for private sector management and trigger improved utilisation of the inland waterways for transportation and easy conveyance of goods.

Read More

Strengthening Capital Market Regulation

The Nigerian capital market has continued to suffer the negative impact of the global financial crisis   of 2009.  Since that crisis, the market is yet to recover and enjoy high patronage as many investors remained dazed by the losses they suffered. In fact most investors have vowed not to return to the market. However, regulators and some stakeholders have been making efforts to regain the confidence of investors.

Read More

General Electric to invest in 3 refineries

The Federal Government’s plans to boost local refining of petroleum products brightened yesterday as General Electric (GE), a United States-based multinational company has proposed to invest and revamp the ailing Port Harcourt, Warri and Kaduna refineries.

GE, in a presentation to the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, and the management of the corporation stated that the company’s teams of partners, including its consortium involving engineering, procurement and Construction (EPC) partners, off-takers, traders and some financiers would be engaged in the initiative.

Read More

Rising Inflation Worsens Nigeria’s Misery Index

The sustained increase in the consumer price index (CPI), which is used to gauge inflation in the country has worsened misery index in Nigeria, a report by the Financial Derivatives Company Limited has stated.

Using the third quarter 2016 unemployment and underemployment rate of 13.9 per cent and 19.7 per cent (the most recent published figures), and December’s inflation of 18.55 per cent, Nigeria’s misery index is 52.15.

Read More

$28.9b reserves: CBN warns against reckless forex spending

With Nigeria’s foreign reserve standing at $28.9 billion, the Central Bank of Nigeria (CBN) has warned against reckless depletion of the kitty.

Addressing reporters at the end of the bi-monthly Monetary Policy Committee (MPC) meeting in Abuja yesterday, CBN Governor, Godwin Emefiele said the reserves today stands at $28.9 billion. “The fact that we have began to see some accretion to the reserve does not mean we should be reckless,” he warned.

Read More

Stockbrokers: Why Govt Must Privatise Assets through Capital Market

Stockbrokers have insisted that the federal government must privatise any of its assets through the nation’s capital market for the benefits of all stakeholders.

Given the current economic recession, it has been said that the federal government needs to sell some of its assets that are not efficiently run and are constituting drain on its finances. Although the government is yet to decide which of the assets to privatise, it is one of the options economic and financial experts have proffered as a way out of the economic recession.

Read More

How Nigeria can benefit from WTO TFA ratification

Except Nigeria addresses challenges within its business environment, especially in the area of infrastructure, ratifying trade deals may be to the disadvantage of operators due to lack of competitiveness. This was the view of President, Manufacturers Association of Nigeria (MAN), Dr. Frank Jacobs, and other operators while speaking on the issue of trade facilitation.

According to the real sector operators, anything that will improve ease of doing business is welcome considering the challenges being encountered in the productive sector.

Read More

FG Moves to Restructure BOI, BOA

The federal government has inaugurated the National Council on Privatisation (NCP) Steering Committee on the Restructuring and Recapitalisation of the Bank of Industry and the Project Delivery Team to revitalise the operations of the Bank of Agriculture.

Inaugurating the Steering Committee and Project Delivery Team on behalf of the Vice President, Minister of Agriculture and Rural Development, Chief Audu Ogbeh, who chairs the Committee, informed that the approach is to make the Bank of Agriculture more responsive to its mandate of serving as a veritable platform for providing loans to MSMEs, rural farmers, cooperatives and agro-allied industries, among others.

Read More

FG targets 2000mw from solar energy –Onu

The Federal Government has concluded arrangement to generate at least 2000 megawatts of solar energy, Minister of Science and Technology, Dr. Ogbonnaya Onu has said. Onu, who addressed a World press conference on the outcome of his recent tour to the 7th General Assembly of the International Renewable Energy Agency (IRENA), in Abu Dabi, United Arab Emirate and Ethiopia, said out of the 2000 megawatts to be generated this year, 1000 will be off grid while the other 1000mw will be on grid.

He disclosed that the world for the first time spent about $300 billion in 2016 to promote renewable energy, while countries were also increasing percentage of contributions to their energy mix. IRENA is an inter-governmental organization involving many countries from all the continents that emphasise the importance of renewable energy. Aside ensuring the shift from fossil fuels to renewable energy, IRENA is also promoting the use of bio-energy, ocean, solar, Geo-thermal, hydro power energy.

Read More

NAICOM to Undertake Verification of Capital Resources, Assets of Insurance Institutions

The National Insurance Commission (NAICOM) has said it will undertake a verification of the Capital resources of all insurance companies in the country in the first quarter of 2017.

The commission, disclosed this in a circular titled “Statement of NAICOM’s Regulatory Priorities for the year 2017” sent to chief executive officers and boards of insurance institutions.

Read More

Comment here