Economic News Update

Economic News Update: 27th February, 2017

news-brief

CBN receives $221.3m fresh bid from 16 banks

The Central Bank of Nigeria has received a total fresh bid of $221.3m from 16 Deposit Money Banks in the country.

This followed last week’s modification of the foreign exchange policy by the CBN, which saw the reduction of the tenor of the regulator’s forward sales from 180 days to 60 days from the date of transaction.

Read More

SON Seizes N5bn Sub-standard Tyres in Lagos

Two Chinese nationals, Taolung Shen and Xu Jing Yau, are now telling the police in Lagos all they know about the over N5billion sub-standard tyre stuffing business which they have been running in the country.

The two Asians were paraded before journalists  yesterday following their arrest, and the sealing of the warehouse where they had been cloning different sizes of tyres under such brand names as Powertrac, Aptany, Harmony, Duraturn, Bearway, City Tour, Winda, Glory, Chachland, City Grand and Grandsonte (tyre type) And Sunny (for tricycles), among others.

Read More

Experts predict further gain as naira hits 445/dollar

The naira rose to 445 against the United States dollar at the parallel market on Sunday, one week after the Central Bank of Nigeria introduced a new policy measure aimed at boosting foreign exchange supply in the market.

The local currency, which had tumbled to 520/dollar last Monday, closed at 450 on Friday. The CBN had last Monday commenced the implementation of the reformed forex policy with a promise to sell $1m weekly to each of the 21 commercial banks in the country.

Read More

S’East Governors Meet in Enugu, Agree on Security, Economic Integration

For the first time in over a year, five governors of the South-east states met yesterday in Enugu with a resolution to work together for the interest of the people of the zone.

The closed-door meeting which was held at the Government House, Enugu, had all the five governors present without any representation unlike in the past when some would send their deputies. The governors included Victor Ikpeazu (Abia), Ifeanyi Ugwuanyi (Enugu), Dave Umahi (Ebonyi), Willie Obiano (Anambra) and Rochas Okorocha (Imo)

Read More

Power consumers grumble despite rise in generation

The recent comments by the Minister of Power, Works and Housing, Mr. Babatunde Fashola, on the rise in power generation to about 4,000 megawatts have been greeted with condemnation by individual electricity consumers as well as different consumer groups across the country.

According to them, the rise in power generation above 4,000MW has yet to translate into physical supply of electricity to households and businesses, as they argued that Nigeria’s power situation was still very poor.

 

Read More

CBN Assures Nigerians, Investors of Exchange Rate Stability

Basking in the euphoria of the appreciation recorded by the naira last week, the Central Bank of Nigeria (CBN) has restated its commitment to exchange rate stability.

Speaking at the Guaranty Trust Bank Plc’s 2017 non-oil export workshop held in Lagos at the weekend, the Deputy Director Trade and Exchange Department of the CBN, Olu Vincent urged Nigerians to continue to support public policies.

Read More

How Ghana dumps Indian packaged garri in Nigerian stores

Despite being the world’s largest cassava producer with an estimated 75 per cent of the produce processed into garri, millions of Nigerians were shocked last week when packs of imported garri from India were discovered at a supermarket in Ikoyi, Lagos. Gari, which is desiccated, crispy, creamy-white and granular staple food stuff happens to be the least of any item that anyone would imagine, could be imported from else where in the world into Nigeria because it is surplus supply and is being produced almost in every state in the country.

After National Agency for Food and Drug Administration and Control (NAFDAC) visited the supermarket in Ikoyi and 26 packets of 500mg each of the product were seized for analysis, Daily Sun investigations reveal that the garri was actually produced in Ghana but was packaged in India before making its way into Nigerian stores.

Read More

FG commences campaign on Minamata Convention on Mercury

The Federal Government has commenced an awareness campaign on the Minamata Convention on Mercury, which was negotiated by the global community between 2010 and 2013 to protect human health and the environment from the emissions and releases of mercury and its compounds.

The convention was adopted and opened for signature on October 10, 2013 at a diplomatic conference in Kumamoto, Japan, and Nigeria is currently working towards its ratification and implementation.

Read More

Delta signs MoU on business interaction with investors

DELTA state Government has signed a Memorandum of Understanding (MoU), with ANIWURA International project limited to create a platform for interaction between government and potential investors both locally and internationally. Secretary to the State Government, Mr. Festus Ovie Agas, who signed on behalf of the state government expressed optimism that the MoU will be mutually beneficial to both parties.

He said the partnership will engender the desired platform that will further ensure the success of the policy thrust of the present administration. Agas explained the initiative has a strong link with the administration’s S.M.A.R.T Agenda as it would further give beneficiaries of the Youth Agricultural Entrepreneurship Programme (YAGEP), and Skills Training and Entrepreneurship Programme (STEP) a new vista to interact with the world.

Read More

AMCON Resolves Issues with OAS

The Asset Management Corporation of Nigeria (AMCON), which last week sealed Odengene Air Shuttle (OAS Helicopters) heliport has removed its seal and marks on the company’s property. Feelers from AMCON indicate that the matter with OAS has been amicably resolved and the company has continued to operate unhindered.

OAS was said to have made a surprise bold imprint bordering on finance and business programme that impressed AMCON. AMCON, on its part was said to have maintained that its intention was never to hinder any organisation with great potential but rather, will encourage such companies to reach their goals “especially if the goals are clear”.

Read More

Group decries poor loan repayment by farmers

The African Initiative for Rural and Agriculture Development (AIRAD), has decried poor loan repayment capacity of farmers, just as it called for the involvement of the private sector in the disbursement and recovery of loans to farmers in Nigeria and Africa generally. The group also amplified the need for African Governments to implement the Maputo Declaration where African leaders were urged to commit 10 per cent of their national budget to agriculture.

Chairman and Countries’ Coordinator of AIRAD, Alhaji Boboi Aliyu, stated this while addressing journalists ahead of the agriculture African Summit scheduled for next month in Abuja According to him, financing agriculture should not be vested only on government, but should be a collective responsibility of all, especially the private sector. In addition, Aliyu called on African governments to peg interest rate on agriculture loan at three per cent as practiced internationally.

Read More

Shareholders get N30bn stranded dividend

The Securities and Exchange Commission has said that over N30bn has so far been paid to investors in the Nigerian capital market from the backlog of unclaimed dividends.

As a means to further reduce the unclaimed dividends profile and curb its growth in the country, the commission assured the investing public that it would continue to underwrite the cost of electronic dividend enrolment till June 30, 2017.

Read More

‘Policy inconsistencies, parlous infrastructure threaten FDI’

Nigerian professionals in London have stressed the need for government to tackle the issue of policy inconsistencies with pragmatic plan aimed at ensuring rapid development in infrastructure. This they said would attract the needed Foreign Direct Investment (FDI) into the country.

The stakeholders stated this, in an interview with The Guardian during the launch of Lagos Chapter of  ‘Nigerians In The Square Mile’ (NISM), a London based initiative, aimed at strengthening trade ties between Nigerian Professional in London and the Nigeria counterparts.

Read More

7.34 million workers join Contributory Pension Scheme

The number of workers that signed to the Contributory Pension Scheme rose to 7.34 million at the end of the 2016 financial period. The National Pension Commission said this in a report obtained by our correspondent that the figure rose from 6.39 million at the end of 2014 to 6.88 million in 2015.

The commission also disclosed that the figure was 5.39 million in 2012 before rising to 5.91 million in 2013. The Pension Reform Act was enacted to provide a contributory scheme for the payment of retirement benefits of employees in both public and private sectors.

Read More

Expect 100% fare hike: Domestic airlines tell Nigerian travellers

A recent dip in the value of the naira (which fell to an all time low of N520 to $1dollar) as well as the rise in cost of aviation fuel from N240 per litre to N260 per litre is creating fresh wave of turbulence in the country’s troubled aviation industry.

“The depreciating naira is creating great source of worry in the aviation industry,” said aviation analysts, Mr. Olu Ohunayo. In an interview with Daily Sun yesterday, Ohunayo who manages Zenith Travels Limited, said the spiral effect of the continuous depreciation of the naira has hurt the revenues of Nigerian airports. “Airport terminals and aircrafts are practically empty after the first or early morning flights,” he said.

Read More

Premium PFA increases access to pension

Premium Pension Limited, one of the Pension Fund Administrators in the country has said it is increasing people’s accessibility to pensions with the opening of a new office in Lagos. The Chairman of the company, Mr. Aliyu Dikko, said this during the official opening of the new Lagos Island regional office.

“Due to the strategic place of Lagos, we are inaugurating this new office to cater for our clients in this region,” he said. The Managing Director of the firm, Mr. Wilson Ideva, said that the firm’s desire to bring its services closer to its clients necessitated its decision to establish standard branches nationwide.

Read More

Discos ripping off electricity consumers with crazy bills –Do

Former Dean, Faculty of Engineering, University of Lagos (UNILAG), Prof. Sanmbo Balogun, has accused the various power distribution companies in the country of ripping off electricity consumers with crazy bills despite the current erratic supply to homes and industries. Balogun, who spoke at the 5th distinguished lecture of Faculty of Engineering of UNILAG, said electricity bills are crazier than before while the various power distribution companies are mounting a strong campaign to justify the obvious rip-off.

Balogun who spoke on the topic: “Challenge the Engineer, Unleash the Nation’’, used the occasion to advise President Muhammadu Buhari to split the Ministry of Power, Works and Housing being handled by one person, to make it effective in service delivery. According to him, the poor and inefficient power generation, transmission and distribution has defied solution for almost 20 years despite the heavy financial provisions for electric power development during the period.

Read More

Cashless policy reduces banking services cost, says Adelabu

The Central Bank of Nigeria says the Cashless Nigeria policy has reduced the cost of banking services, increased awareness and usage of electronic channels, and improved the effectiveness of the CBN’s monetary policy.

The Deputy Governor, Operations, CBN, Mr. Adebayo Adelabu, who stated this, said the policy had also fostered transparency in the economy. He spoke on Friday at the second anniversary of the Electronic Payment Incentive Scheme initiated by the CBN in collaboration with the Nigeria Interbank Settlement System Plc.

Read More

Countdown to FG’s red card for automotive junks

Ahead of  March 1, 2017, when   all the rickety trucks plying the Apapa-Wharf Road will  go off the road, truck owners are already jittery over the ultimatum, saying the order will make things more difficult for investors in haulage business. The restriction order is the result of  a Memorandum of Understanding (MOU) signed between Nigerian Ports Authority (NPA) and Federal Road Safety Corps (FRSC) penultimate week to ban all trucks that cannot meet some standards.

These standards include light and sign violation, driving without licence and number plate; driving without good tyres or worn-out tyres or spare tyres; driving with shattered windscreen and without specified fire extinguisher. Others are driving commercial buses without passenger manifest, driving a vehicle with excessive smoke emission and mechanically-deficient trucks as well as caution sign violation.

Read More

Comment here

Economic News Update

Economic News Update: 27th February, 2017

news-brief

CBN receives $221.3m fresh bid from 16 banks

The Central Bank of Nigeria has received a total fresh bid of $221.3m from 16 Deposit Money Banks in the country.

This followed last week’s modification of the foreign exchange policy by the CBN, which saw the reduction of the tenor of the regulator’s forward sales from 180 days to 60 days from the date of transaction.

Read More

SON Seizes N5bn Sub-standard Tyres in Lagos

Two Chinese nationals, Taolung Shen and Xu Jing Yau, are now telling the police in Lagos all they know about the over N5billion sub-standard tyre stuffing business which they have been running in the country.

The two Asians were paraded before journalists  yesterday following their arrest, and the sealing of the warehouse where they had been cloning different sizes of tyres under such brand names as Powertrac, Aptany, Harmony, Duraturn, Bearway, City Tour, Winda, Glory, Chachland, City Grand and Grandsonte (tyre type) And Sunny (for tricycles), among others.

Read More

Experts predict further gain as naira hits 445/dollar

The naira rose to 445 against the United States dollar at the parallel market on Sunday, one week after the Central Bank of Nigeria introduced a new policy measure aimed at boosting foreign exchange supply in the market.

The local currency, which had tumbled to 520/dollar last Monday, closed at 450 on Friday. The CBN had last Monday commenced the implementation of the reformed forex policy with a promise to sell $1m weekly to each of the 21 commercial banks in the country.

Read More

S’East Governors Meet in Enugu, Agree on Security, Economic Integration

For the first time in over a year, five governors of the South-east states met yesterday in Enugu with a resolution to work together for the interest of the people of the zone.

The closed-door meeting which was held at the Government House, Enugu, had all the five governors present without any representation unlike in the past when some would send their deputies. The governors included Victor Ikpeazu (Abia), Ifeanyi Ugwuanyi (Enugu), Dave Umahi (Ebonyi), Willie Obiano (Anambra) and Rochas Okorocha (Imo)

Read More

Power consumers grumble despite rise in generation

The recent comments by the Minister of Power, Works and Housing, Mr. Babatunde Fashola, on the rise in power generation to about 4,000 megawatts have been greeted with condemnation by individual electricity consumers as well as different consumer groups across the country.

According to them, the rise in power generation above 4,000MW has yet to translate into physical supply of electricity to households and businesses, as they argued that Nigeria’s power situation was still very poor.

 

Read More

CBN Assures Nigerians, Investors of Exchange Rate Stability

Basking in the euphoria of the appreciation recorded by the naira last week, the Central Bank of Nigeria (CBN) has restated its commitment to exchange rate stability.

Speaking at the Guaranty Trust Bank Plc’s 2017 non-oil export workshop held in Lagos at the weekend, the Deputy Director Trade and Exchange Department of the CBN, Olu Vincent urged Nigerians to continue to support public policies.

Read More

How Ghana dumps Indian packaged garri in Nigerian stores

Despite being the world’s largest cassava producer with an estimated 75 per cent of the produce processed into garri, millions of Nigerians were shocked last week when packs of imported garri from India were discovered at a supermarket in Ikoyi, Lagos. Gari, which is desiccated, crispy, creamy-white and granular staple food stuff happens to be the least of any item that anyone would imagine, could be imported from else where in the world into Nigeria because it is surplus supply and is being produced almost in every state in the country.

After National Agency for Food and Drug Administration and Control (NAFDAC) visited the supermarket in Ikoyi and 26 packets of 500mg each of the product were seized for analysis, Daily Sun investigations reveal that the garri was actually produced in Ghana but was packaged in India before making its way into Nigerian stores.

Read More

FG commences campaign on Minamata Convention on Mercury

The Federal Government has commenced an awareness campaign on the Minamata Convention on Mercury, which was negotiated by the global community between 2010 and 2013 to protect human health and the environment from the emissions and releases of mercury and its compounds.

The convention was adopted and opened for signature on October 10, 2013 at a diplomatic conference in Kumamoto, Japan, and Nigeria is currently working towards its ratification and implementation.

Read More

Delta signs MoU on business interaction with investors

DELTA state Government has signed a Memorandum of Understanding (MoU), with ANIWURA International project limited to create a platform for interaction between government and potential investors both locally and internationally. Secretary to the State Government, Mr. Festus Ovie Agas, who signed on behalf of the state government expressed optimism that the MoU will be mutually beneficial to both parties.

He said the partnership will engender the desired platform that will further ensure the success of the policy thrust of the present administration. Agas explained the initiative has a strong link with the administration’s S.M.A.R.T Agenda as it would further give beneficiaries of the Youth Agricultural Entrepreneurship Programme (YAGEP), and Skills Training and Entrepreneurship Programme (STEP) a new vista to interact with the world.

Read More

AMCON Resolves Issues with OAS

The Asset Management Corporation of Nigeria (AMCON), which last week sealed Odengene Air Shuttle (OAS Helicopters) heliport has removed its seal and marks on the company’s property. Feelers from AMCON indicate that the matter with OAS has been amicably resolved and the company has continued to operate unhindered.

OAS was said to have made a surprise bold imprint bordering on finance and business programme that impressed AMCON. AMCON, on its part was said to have maintained that its intention was never to hinder any organisation with great potential but rather, will encourage such companies to reach their goals “especially if the goals are clear”.

Read More

Group decries poor loan repayment by farmers

The African Initiative for Rural and Agriculture Development (AIRAD), has decried poor loan repayment capacity of farmers, just as it called for the involvement of the private sector in the disbursement and recovery of loans to farmers in Nigeria and Africa generally. The group also amplified the need for African Governments to implement the Maputo Declaration where African leaders were urged to commit 10 per cent of their national budget to agriculture.

Chairman and Countries’ Coordinator of AIRAD, Alhaji Boboi Aliyu, stated this while addressing journalists ahead of the agriculture African Summit scheduled for next month in Abuja According to him, financing agriculture should not be vested only on government, but should be a collective responsibility of all, especially the private sector. In addition, Aliyu called on African governments to peg interest rate on agriculture loan at three per cent as practiced internationally.

Read More

Shareholders get N30bn stranded dividend

The Securities and Exchange Commission has said that over N30bn has so far been paid to investors in the Nigerian capital market from the backlog of unclaimed dividends.

As a means to further reduce the unclaimed dividends profile and curb its growth in the country, the commission assured the investing public that it would continue to underwrite the cost of electronic dividend enrolment till June 30, 2017.

Read More

‘Policy inconsistencies, parlous infrastructure threaten FDI’

Nigerian professionals in London have stressed the need for government to tackle the issue of policy inconsistencies with pragmatic plan aimed at ensuring rapid development in infrastructure. This they said would attract the needed Foreign Direct Investment (FDI) into the country.

The stakeholders stated this, in an interview with The Guardian during the launch of Lagos Chapter of  ‘Nigerians In The Square Mile’ (NISM), a London based initiative, aimed at strengthening trade ties between Nigerian Professional in London and the Nigeria counterparts.

Read More

7.34 million workers join Contributory Pension Scheme

The number of workers that signed to the Contributory Pension Scheme rose to 7.34 million at the end of the 2016 financial period. The National Pension Commission said this in a report obtained by our correspondent that the figure rose from 6.39 million at the end of 2014 to 6.88 million in 2015.

The commission also disclosed that the figure was 5.39 million in 2012 before rising to 5.91 million in 2013. The Pension Reform Act was enacted to provide a contributory scheme for the payment of retirement benefits of employees in both public and private sectors.

Read More

Expect 100% fare hike: Domestic airlines tell Nigerian travellers

A recent dip in the value of the naira (which fell to an all time low of N520 to $1dollar) as well as the rise in cost of aviation fuel from N240 per litre to N260 per litre is creating fresh wave of turbulence in the country’s troubled aviation industry.

“The depreciating naira is creating great source of worry in the aviation industry,” said aviation analysts, Mr. Olu Ohunayo. In an interview with Daily Sun yesterday, Ohunayo who manages Zenith Travels Limited, said the spiral effect of the continuous depreciation of the naira has hurt the revenues of Nigerian airports. “Airport terminals and aircrafts are practically empty after the first or early morning flights,” he said.

Read More

Premium PFA increases access to pension

Premium Pension Limited, one of the Pension Fund Administrators in the country has said it is increasing people’s accessibility to pensions with the opening of a new office in Lagos. The Chairman of the company, Mr. Aliyu Dikko, said this during the official opening of the new Lagos Island regional office.

“Due to the strategic place of Lagos, we are inaugurating this new office to cater for our clients in this region,” he said. The Managing Director of the firm, Mr. Wilson Ideva, said that the firm’s desire to bring its services closer to its clients necessitated its decision to establish standard branches nationwide.

Read More

Discos ripping off electricity consumers with crazy bills –Do

Former Dean, Faculty of Engineering, University of Lagos (UNILAG), Prof. Sanmbo Balogun, has accused the various power distribution companies in the country of ripping off electricity consumers with crazy bills despite the current erratic supply to homes and industries. Balogun, who spoke at the 5th distinguished lecture of Faculty of Engineering of UNILAG, said electricity bills are crazier than before while the various power distribution companies are mounting a strong campaign to justify the obvious rip-off.

Balogun who spoke on the topic: “Challenge the Engineer, Unleash the Nation’’, used the occasion to advise President Muhammadu Buhari to split the Ministry of Power, Works and Housing being handled by one person, to make it effective in service delivery. According to him, the poor and inefficient power generation, transmission and distribution has defied solution for almost 20 years despite the heavy financial provisions for electric power development during the period.

Read More

Cashless policy reduces banking services cost, says Adelabu

The Central Bank of Nigeria says the Cashless Nigeria policy has reduced the cost of banking services, increased awareness and usage of electronic channels, and improved the effectiveness of the CBN’s monetary policy.

The Deputy Governor, Operations, CBN, Mr. Adebayo Adelabu, who stated this, said the policy had also fostered transparency in the economy. He spoke on Friday at the second anniversary of the Electronic Payment Incentive Scheme initiated by the CBN in collaboration with the Nigeria Interbank Settlement System Plc.

Read More

Countdown to FG’s red card for automotive junks

Ahead of  March 1, 2017, when   all the rickety trucks plying the Apapa-Wharf Road will  go off the road, truck owners are already jittery over the ultimatum, saying the order will make things more difficult for investors in haulage business. The restriction order is the result of  a Memorandum of Understanding (MOU) signed between Nigerian Ports Authority (NPA) and Federal Road Safety Corps (FRSC) penultimate week to ban all trucks that cannot meet some standards.

These standards include light and sign violation, driving without licence and number plate; driving without good tyres or worn-out tyres or spare tyres; driving with shattered windscreen and without specified fire extinguisher. Others are driving commercial buses without passenger manifest, driving a vehicle with excessive smoke emission and mechanically-deficient trucks as well as caution sign violation.

Read More

Comment here