Market Update

Economic News Update: 28th December, 2016

Why we acquired 60% equity in Mobil – NIPCO Chairman\

IN a response to observers on the motive behind the acquisition of ExxonMobil’s 60 percent equity in Mobil Oil Nigeria, MON,  Plc  , Bestman Anekwe, Chairman of the acquirer, NIPCO Investments Limited, NIL, said it is a strategic feat to support NIPCO’s continuous growth and expansion in the downstream sector of the nation’s oil and gas industry.

Read More

Naira closes at 485/dollar, three days to year end

The naira was sold for 485 per dollar on the streets of Lagos and Abuja on Tuesday, three days to the end of the year. Currency analysts expect the naira to weaken further to 500/dollar before the end of the year.

Foreign exchange traders said the naira had been trading at 485/dollar at the parallel market since Friday.

Read More

Consumer Price Index Rises By 92% in 2016

The Consumer Price Index (CPI), which is used to gauge inflation in Nigeria, increased significantly by 92 per cent in 2016, from 9.62 per cent in January, to 18.48 per cent in November.

This clearly showed that inflationary pressure was strong in 2016 as prices of goods and service rose astronomically during the year. Inflation in 2016 rose far above the upper boundary that was set by the central bank.

Read More

FG fails to renew insurance of civil servants, others as year ends

With barely three working days left to the end of the 2016 business year, confusion continues to trail the Federal Government’s inability to renew the Group Life insurance coverage for its federal civil servants and insurance of its assets nationwide.

This indicates that recession and lack of funds has caught up with the Group life insurance and assets insurance renewal, which may be carried over to 2017.

Read More

NAICOM Threatens to Sanction Violators of Local Content Policy

The National Insurance Commission (NAICOM) has threatened to sanction insurance operators that contravene local content policy by ceding businesses offshore, without fully utilising local capacities.

The commission disclosed this in a circular titled ‘Utilisation of In-Country Capacities of Nigerian Insurers, Reinsurers and Pool Prior to Foreign Facultative Reinsurance, signed by its Director, Authourisation and Policy, Pius Agboola, sent to all insurance institutions.

Read More

External reserves fall by $4bn in one year

Despite the staggering crash in the value of the naira against the United States dollar and other major foreign currencies in 2016, the Central Bank of Nigeria spent $4bn from the nation’s external reserves to defend the local currency in 12 months, statistics obtained from the CBN website on Tuesday showed.

The data also revealed that the external reserves would likely be closing the year on the $25bn mark.

Read More

Managing an Economy in Dilemma

The Nigerian economy is in a dilemma in the sense that on one hand, it is officially in recession and at the same time, it is battling high inflation. In most other climes, inflation is very low when the country is in recession and with that it is always very easy to deal with.

Read More

Power: Zungeru project to add 700MW to the national grid – Fashola

The Federal Government has announced that the on-going construction works on the Zungeru Hydro-electric Power Plant Project would add 700 Megawatts of electricity to the national grid, when completed.

Minister of Power, Works and Housing, Babatunde Fashola, made the disclosure recently during the River Closure Ceremony of the project at Zungeru, Niger State.

Read More

NICON, NAMB Sign MoU on Insurance Cover for Chairmen/MDs

NICON Insurance Limited recently signed a partnership agreement with the National Association of Microfinance Banks (NAMB) to provide Group Welfare Insurance to all chairmen and managing directors of over 900 micro-finance banks in the country.

NICON Insurance Executive Director Technical, Mr. Akinsola Ale and President of NAMB, Mr. Valentine signed the agreement on behalf of their respective organisations recently in Uyo the Akwa Ibom State capital.

Read More

2017: Rating agencies not keen on emerging markets

A number of global fund managers say they are buying emerging market assets for 2017 after the beating the sector has taken since the United States election in November, even though credit rating agencies have a less positive outlook, according to a Reuters report.

Read More

 Corporate governance will enhance investment inflow

Contrary to allegations that the new National Code of Corporate Governance (NCCG) is inimical to further investment, the Financial Reporting Council of Nigeria (FRCN) has defended that full compliance with the code would stimulate investment inflow in Nigeria.

Read More

Guinea Insurance Assures Stakeholders on Financial Health

Guinea Insurance Plc, has said that it is financially hale and hearty to discharge its responsibilities of consolidating and strategically growing market share through decisive long-term investments and customer engagement initiatives.

The company, in a statement, said in spite of the daunting challenges in the operating environment, it has remained focused and true to its ideals of becoming an insurer of first choice.

Read More

FG to conduct statistical surveys with N947m

The Federal Government is proposing to spend a total sum of N946.6m to carry out 21 statistical surveys in the 2017 fiscal period through the National Bureau of Statistics.

Details of the spending are contained in the 2017 budget proposal, which was submitted to a joint session of the National Assembly by President Muhammadu Buhari on December 14.

Read More

SON to destroy N400m sub-standard tyres

The Standards Organisation of Nigeria (SON) has an inventory of over N400million worth of substandard tyres awaiting destruction in its warehouses, the Director-General, Osita Anthony Aboloma, has said.

The SON chief said the destruction is to serve both as a deterrent and to also forestall a situation where such products, if left un-destroyed, could be recycled into the society, with its obvious and staggering implications

Read More

Relief as Magboro, others get electricity after 10 years

Some communities in Magboro, Ibafo and Mowe in Ogun State have been connected to the power grid after 10 years of total blackout that hampered business activities and forced some residents to relocate.

Our correspondent gathered that over 50 areas in the communities had received power supply following the connection to the grid.

Read More

Comment here

Market Update

Economic News Update: 28th December, 2016

Why we acquired 60% equity in Mobil – NIPCO Chairman\

IN a response to observers on the motive behind the acquisition of ExxonMobil’s 60 percent equity in Mobil Oil Nigeria, MON,  Plc  , Bestman Anekwe, Chairman of the acquirer, NIPCO Investments Limited, NIL, said it is a strategic feat to support NIPCO’s continuous growth and expansion in the downstream sector of the nation’s oil and gas industry.

Read More

Naira closes at 485/dollar, three days to year end

The naira was sold for 485 per dollar on the streets of Lagos and Abuja on Tuesday, three days to the end of the year. Currency analysts expect the naira to weaken further to 500/dollar before the end of the year.

Foreign exchange traders said the naira had been trading at 485/dollar at the parallel market since Friday.

Read More

Consumer Price Index Rises By 92% in 2016

The Consumer Price Index (CPI), which is used to gauge inflation in Nigeria, increased significantly by 92 per cent in 2016, from 9.62 per cent in January, to 18.48 per cent in November.

This clearly showed that inflationary pressure was strong in 2016 as prices of goods and service rose astronomically during the year. Inflation in 2016 rose far above the upper boundary that was set by the central bank.

Read More

FG fails to renew insurance of civil servants, others as year ends

With barely three working days left to the end of the 2016 business year, confusion continues to trail the Federal Government’s inability to renew the Group Life insurance coverage for its federal civil servants and insurance of its assets nationwide.

This indicates that recession and lack of funds has caught up with the Group life insurance and assets insurance renewal, which may be carried over to 2017.

Read More

NAICOM Threatens to Sanction Violators of Local Content Policy

The National Insurance Commission (NAICOM) has threatened to sanction insurance operators that contravene local content policy by ceding businesses offshore, without fully utilising local capacities.

The commission disclosed this in a circular titled ‘Utilisation of In-Country Capacities of Nigerian Insurers, Reinsurers and Pool Prior to Foreign Facultative Reinsurance, signed by its Director, Authourisation and Policy, Pius Agboola, sent to all insurance institutions.

Read More

External reserves fall by $4bn in one year

Despite the staggering crash in the value of the naira against the United States dollar and other major foreign currencies in 2016, the Central Bank of Nigeria spent $4bn from the nation’s external reserves to defend the local currency in 12 months, statistics obtained from the CBN website on Tuesday showed.

The data also revealed that the external reserves would likely be closing the year on the $25bn mark.

Read More

Managing an Economy in Dilemma

The Nigerian economy is in a dilemma in the sense that on one hand, it is officially in recession and at the same time, it is battling high inflation. In most other climes, inflation is very low when the country is in recession and with that it is always very easy to deal with.

Read More

Power: Zungeru project to add 700MW to the national grid – Fashola

The Federal Government has announced that the on-going construction works on the Zungeru Hydro-electric Power Plant Project would add 700 Megawatts of electricity to the national grid, when completed.

Minister of Power, Works and Housing, Babatunde Fashola, made the disclosure recently during the River Closure Ceremony of the project at Zungeru, Niger State.

Read More

NICON, NAMB Sign MoU on Insurance Cover for Chairmen/MDs

NICON Insurance Limited recently signed a partnership agreement with the National Association of Microfinance Banks (NAMB) to provide Group Welfare Insurance to all chairmen and managing directors of over 900 micro-finance banks in the country.

NICON Insurance Executive Director Technical, Mr. Akinsola Ale and President of NAMB, Mr. Valentine signed the agreement on behalf of their respective organisations recently in Uyo the Akwa Ibom State capital.

Read More

2017: Rating agencies not keen on emerging markets

A number of global fund managers say they are buying emerging market assets for 2017 after the beating the sector has taken since the United States election in November, even though credit rating agencies have a less positive outlook, according to a Reuters report.

Read More

 Corporate governance will enhance investment inflow

Contrary to allegations that the new National Code of Corporate Governance (NCCG) is inimical to further investment, the Financial Reporting Council of Nigeria (FRCN) has defended that full compliance with the code would stimulate investment inflow in Nigeria.

Read More

Guinea Insurance Assures Stakeholders on Financial Health

Guinea Insurance Plc, has said that it is financially hale and hearty to discharge its responsibilities of consolidating and strategically growing market share through decisive long-term investments and customer engagement initiatives.

The company, in a statement, said in spite of the daunting challenges in the operating environment, it has remained focused and true to its ideals of becoming an insurer of first choice.

Read More

FG to conduct statistical surveys with N947m

The Federal Government is proposing to spend a total sum of N946.6m to carry out 21 statistical surveys in the 2017 fiscal period through the National Bureau of Statistics.

Details of the spending are contained in the 2017 budget proposal, which was submitted to a joint session of the National Assembly by President Muhammadu Buhari on December 14.

Read More

SON to destroy N400m sub-standard tyres

The Standards Organisation of Nigeria (SON) has an inventory of over N400million worth of substandard tyres awaiting destruction in its warehouses, the Director-General, Osita Anthony Aboloma, has said.

The SON chief said the destruction is to serve both as a deterrent and to also forestall a situation where such products, if left un-destroyed, could be recycled into the society, with its obvious and staggering implications

Read More

Relief as Magboro, others get electricity after 10 years

Some communities in Magboro, Ibafo and Mowe in Ogun State have been connected to the power grid after 10 years of total blackout that hampered business activities and forced some residents to relocate.

Our correspondent gathered that over 50 areas in the communities had received power supply following the connection to the grid.

Read More

Comment here