Economic News Update

Economic News Update: 30th December, 2016

Naira among four worst global currencies in 2016

The naira is one of the world’s four worst performing currencies in 2016, according to a report by Bloomberg LP.

The naira was said to have lost 36.68 per cent of its spot returns for the year, while the Egyptian pound, Suriname dollar and Venezuela bolivar’s currency spot returns dropped by 58.84 per cent, 46.68 per cent and 37 per cent, respectively, for the period.

Read More

Recession: Scarcity of small naira denominations hits banks

Nigeria’s prevailing economic recession has forced the Central Bank of Nigeria (CBN) to suspend printing of small naira denominations for about a year, leading to the scarcity of the notes in the economy, sources at the apex bank have disclosed.

The News Agency of Nigeria (NAN), citing sources at the CBN, reports that for a year now, the apex bank did not award contract for the printing of the notes such as N5, N10, N20 and N50 usually done abroad.

Read More

Power generation hits 4,000MW

After hovering around 3,000 megawatts for about 10 weeks, the country’s total generated power crossed the 4,100MW mark on Monday, December 26, 2016.

The country had attained a peak generation of 4,358.6MW on October 16, but this was not sustained as the figure dropped below 4,000MW and had been fluctuating around 3,000MW since October 20.

Read More

Debt burden, infrastructure gap and PPP

According to the Debt Management Office, (DMO), Nigeria’s public debt manager, the debt portfolio has grown in leaps and bounds from N7.744 trillion in 2011, to an alarming N16.3 trillion as at the end of June this year.

By the time the agency computes the end of year commitments, it may be reaching a new high, given the sharp drop in the Naira’s value in the last six months when the Central Bank of Nigeria (CBN), the lender of last resort, floated the exchange rate.

Read More

Ghana’s Q3 GDP Growth Rises to 4%

Ghana’s Gross Domestic Product (GDP) growth in the third quarter of 2016 rose to four per cent year-on-year, up from 3.6 per cent a year ago due to increased oil production, the statistics office said on Wednesday.

Reuters reported that for years Ghana’s economy grew at eight per cent annually on the back of its gold, oil and cocoa exports. But it has slowed sharply since 2013, in part because of lower global commodities prices.

Read More

NACCIMA calls for single exchange rate

THE Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), yesterday, called for a single exchange rate in the country, saying the existence of multiple exchange rates was not good for investors’ confidence. The Chamber also demanded for reconstitution of boards of the federal parastatals and a review of the federal government’s economic team to include members of the Organised Private Sector, OPS.

Read More

NAICOM granting unnecessary waivers to insurance firms – Workers

The crisis rocking the National Insurance Commission has assumed a new dimension with the workers’ union accusing the management of granting unnecessary waivers to defaulting insurance companies.

The workers, under the aegis of the Amalgamated Union of Public Corporations, Civil Service, Technical and Recreational Services’ Employees, made the allegation in a letter titled: ‘Highlights of the bad state of NAICOM’ to the Federal Ministry of Finance

Read More

Why aviation fuel is scarce, by NNPC

The scarcity of Aviation Turbine Kerosene  (ATK) has more to do with the inability of airlines to pay for the product than its alleged scacity, the Nigerian National Petroleum Corporation (NNPC) has said.

The Corporation said the introduction of the cash-and-carry policy by marketers as a  result of the huge debts  being owed by the airlines, was the main cause of the scarcity.

Read More

Rice, wheat import gulps N1trn annually – CBN

The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has said that importation of rice and wheat gulped over N1 trillion in foreign exchange annually.

Emefiele said this on Thursday in Jibia, Katsina State, at the launch of CBN Anchor Borrowers Programme and 2016/2017 Dry Season Farming.  ‘’Nigeria’s import bill is exceptionally high; top four import commodities which include rice and wheat, consume over N1 trillion in foreign exchange annually,’’ he said.

Read More

Nigeria and empty threat to national security

The way things are going on in Nigeria is totally unacceptable. The media anchors and advisers to President Muhammadu Buhari are incompetent and are not realistic. Their media statements to cancel his official engagements so far are a complete package of balderdash. Please, President Buhari is the Commander-in-Chief of the Armed Forces of the most populous black nation in Africa and the world.

Read More

Naira reverses gain, drops to 490/dollar

The naira fell against the United States dollar from 485 to 490 at the parallel market on Wednesday, reversing part of the gain it had recorded against the greenback last week.

The local currency, which had fallen to 495/dollar last Thursday, recorded some gains and closed at 485/dollar on Friday.

Read More

ASUU accuses JAMB registrar, Unilorin VC of N2b fraud

The Academic Staff Union of Universities (ASUU) has petitioned the Economic and Financial Crimes Commission (EFCC), accusing the administrations of former vice-chancellor of the University of Ilorin ( UNILORIN) Professor Ishaq Oloyede (now JAMB registrar) and his successor, Professor Abdulganiyu Ambali of N2 billion fraud.

Read More

CBN sells $1b to clear forex backlog in aviation, manufacturing

The Central Bank of Nigeria (CBN) has sold about $1 billion on the forward market to clear a foreign exchange (forex) backlog in selected sectors, especially aviation and manufacturing, traders said yesterday.

The dollar sale is the apex bank’s largest special auction since a currency peg was removed in June. Outstanding dollar demand was about $4 billion before June, when the 16-month-old peg was removed. Efforts to cut dollar demand have been largely unsuccessful due to low oil prices.

Read More

 

NNPC approves partial closure of $546m OKLNG

THE Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Maikanti Baru, has approved the partial closure of the Olokola Liquefied Natural Gas, OKLNG, project with effect from December 31, 2016. This is coming as workers on the project decry the non payment of their entitlements. OKLNG is situated in a border town between Ondo and Ogun States. In a letter sited by Vanguard and signed on November 9, 2016, the GMD approved the partial closure of the company stating:

Read More

ANLCA Calls for Reversal of Ban on Vehicles Importation

The Association of Nigerian licensed Customs Agents (ANLCA) has urged the Federal Government of Nigeria (FGN) to re-consider the ban on importation of vehicles through the land borders.

Chairman, Seme Chapter of ANLCA, Bisiriyu Lasisi Fanu made the call in a chat with newsmen in Seme. He stated that the importation of vehicles through the land borders has provided employment to over 500,000 graduates, who would have ordinarily be roaming the streets due to massive unemployment situation in the country.

Read More

Comment here

Economic News Update

Economic News Update: 30th December, 2016

Naira among four worst global currencies in 2016

The naira is one of the world’s four worst performing currencies in 2016, according to a report by Bloomberg LP.

The naira was said to have lost 36.68 per cent of its spot returns for the year, while the Egyptian pound, Suriname dollar and Venezuela bolivar’s currency spot returns dropped by 58.84 per cent, 46.68 per cent and 37 per cent, respectively, for the period.

Read More

Recession: Scarcity of small naira denominations hits banks

Nigeria’s prevailing economic recession has forced the Central Bank of Nigeria (CBN) to suspend printing of small naira denominations for about a year, leading to the scarcity of the notes in the economy, sources at the apex bank have disclosed.

The News Agency of Nigeria (NAN), citing sources at the CBN, reports that for a year now, the apex bank did not award contract for the printing of the notes such as N5, N10, N20 and N50 usually done abroad.

Read More

Power generation hits 4,000MW

After hovering around 3,000 megawatts for about 10 weeks, the country’s total generated power crossed the 4,100MW mark on Monday, December 26, 2016.

The country had attained a peak generation of 4,358.6MW on October 16, but this was not sustained as the figure dropped below 4,000MW and had been fluctuating around 3,000MW since October 20.

Read More

Debt burden, infrastructure gap and PPP

According to the Debt Management Office, (DMO), Nigeria’s public debt manager, the debt portfolio has grown in leaps and bounds from N7.744 trillion in 2011, to an alarming N16.3 trillion as at the end of June this year.

By the time the agency computes the end of year commitments, it may be reaching a new high, given the sharp drop in the Naira’s value in the last six months when the Central Bank of Nigeria (CBN), the lender of last resort, floated the exchange rate.

Read More

Ghana’s Q3 GDP Growth Rises to 4%

Ghana’s Gross Domestic Product (GDP) growth in the third quarter of 2016 rose to four per cent year-on-year, up from 3.6 per cent a year ago due to increased oil production, the statistics office said on Wednesday.

Reuters reported that for years Ghana’s economy grew at eight per cent annually on the back of its gold, oil and cocoa exports. But it has slowed sharply since 2013, in part because of lower global commodities prices.

Read More

NACCIMA calls for single exchange rate

THE Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), yesterday, called for a single exchange rate in the country, saying the existence of multiple exchange rates was not good for investors’ confidence. The Chamber also demanded for reconstitution of boards of the federal parastatals and a review of the federal government’s economic team to include members of the Organised Private Sector, OPS.

Read More

NAICOM granting unnecessary waivers to insurance firms – Workers

The crisis rocking the National Insurance Commission has assumed a new dimension with the workers’ union accusing the management of granting unnecessary waivers to defaulting insurance companies.

The workers, under the aegis of the Amalgamated Union of Public Corporations, Civil Service, Technical and Recreational Services’ Employees, made the allegation in a letter titled: ‘Highlights of the bad state of NAICOM’ to the Federal Ministry of Finance

Read More

Why aviation fuel is scarce, by NNPC

The scarcity of Aviation Turbine Kerosene  (ATK) has more to do with the inability of airlines to pay for the product than its alleged scacity, the Nigerian National Petroleum Corporation (NNPC) has said.

The Corporation said the introduction of the cash-and-carry policy by marketers as a  result of the huge debts  being owed by the airlines, was the main cause of the scarcity.

Read More

Rice, wheat import gulps N1trn annually – CBN

The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has said that importation of rice and wheat gulped over N1 trillion in foreign exchange annually.

Emefiele said this on Thursday in Jibia, Katsina State, at the launch of CBN Anchor Borrowers Programme and 2016/2017 Dry Season Farming.  ‘’Nigeria’s import bill is exceptionally high; top four import commodities which include rice and wheat, consume over N1 trillion in foreign exchange annually,’’ he said.

Read More

Nigeria and empty threat to national security

The way things are going on in Nigeria is totally unacceptable. The media anchors and advisers to President Muhammadu Buhari are incompetent and are not realistic. Their media statements to cancel his official engagements so far are a complete package of balderdash. Please, President Buhari is the Commander-in-Chief of the Armed Forces of the most populous black nation in Africa and the world.

Read More

Naira reverses gain, drops to 490/dollar

The naira fell against the United States dollar from 485 to 490 at the parallel market on Wednesday, reversing part of the gain it had recorded against the greenback last week.

The local currency, which had fallen to 495/dollar last Thursday, recorded some gains and closed at 485/dollar on Friday.

Read More

ASUU accuses JAMB registrar, Unilorin VC of N2b fraud

The Academic Staff Union of Universities (ASUU) has petitioned the Economic and Financial Crimes Commission (EFCC), accusing the administrations of former vice-chancellor of the University of Ilorin ( UNILORIN) Professor Ishaq Oloyede (now JAMB registrar) and his successor, Professor Abdulganiyu Ambali of N2 billion fraud.

Read More

CBN sells $1b to clear forex backlog in aviation, manufacturing

The Central Bank of Nigeria (CBN) has sold about $1 billion on the forward market to clear a foreign exchange (forex) backlog in selected sectors, especially aviation and manufacturing, traders said yesterday.

The dollar sale is the apex bank’s largest special auction since a currency peg was removed in June. Outstanding dollar demand was about $4 billion before June, when the 16-month-old peg was removed. Efforts to cut dollar demand have been largely unsuccessful due to low oil prices.

Read More

 

NNPC approves partial closure of $546m OKLNG

THE Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Maikanti Baru, has approved the partial closure of the Olokola Liquefied Natural Gas, OKLNG, project with effect from December 31, 2016. This is coming as workers on the project decry the non payment of their entitlements. OKLNG is situated in a border town between Ondo and Ogun States. In a letter sited by Vanguard and signed on November 9, 2016, the GMD approved the partial closure of the company stating:

Read More

ANLCA Calls for Reversal of Ban on Vehicles Importation

The Association of Nigerian licensed Customs Agents (ANLCA) has urged the Federal Government of Nigeria (FGN) to re-consider the ban on importation of vehicles through the land borders.

Chairman, Seme Chapter of ANLCA, Bisiriyu Lasisi Fanu made the call in a chat with newsmen in Seme. He stated that the importation of vehicles through the land borders has provided employment to over 500,000 graduates, who would have ordinarily be roaming the streets due to massive unemployment situation in the country.

Read More

Comment here