Economic News Update

Economic News Update: 31st January, 2017

news-brief

Comply with stamp duty ruling, NECA tells CBN

The Nigeria Employers’ Consultative Association has expressed concern over the failure of the Central Bank of Nigeria to comply with the Court of Appeal’s ruling directing all Deposit Money Banks to discontinue charging N50 on every deposit into current accounts above N1,000.

The employers’ group, in a statement on Monday, stated that the banks had failed to obey the court ruling in a case between Kasmal International Services Limited and Access Bank and 23 others.

Read More

NNPC Clarifies Position On Revenue Collection

The Nigerian National Petroleum Corporation (NNPC) yesterday faulted claims that it is involved in the collection of signature bonuses (funds) paid by oil companies to the Federal Government upon their successful bid for oil blocks.

The Group Managing Director of NNPC, Dr Maikanti Baru, said the Corporation had no role in the collection of signature bonus. He explained that it was the Department of Petroleum Resources (DPR), not the NNPC, which was charged with the responsibility of taking receipts of signature bonuses and royalty.

Read More

SEC extends recapitalisation deadline for operators to March this year

Again, the Securities and Exchange Commission (SEC) has announced the extension of the deadline for market operators to comply with the minimum capital requirement by three months, from the initial December 31, 2016. This means that operators have till March 31st to increase their capital base.

The extension followed a plea by stockbrokers, who had requested additional six months to enable them comply successfully. The fact that the market regulator keeps pushing forward the deadline is indicative of the extent of illiquidity in the market, which is characterised by economic meltdown and dwindling purchasing power of the masses, thereby making investment in stocks unattractive.

Read More

Budget: Osinbajo meets Dogara, Senate leader behind closed doors

The Acting President, Yemi Osinbajo, on Monday, met behind closed doors with the Speaker of the House of Representatives, Yakubu Dogara, and the Senate Leader, Ahmed Lawan.

A governor on the platform of the All Progressives Congress also joined the meeting with the acting President. The meeting with Dogara and the governor, which lasted for about 30 minutes, was held inside Osinbajo’s office at the Presidential Villa, Abuja.

Read More

NCC Moves To Achieve 30% Broadband Penetration Next Year

The Nigerian Communications Commission (NCC) said the federal government was committed to delivering broadband for all Nigerians with assurance that the 30 per cent penetration would be achieved next year as enshrined in the National Broadband Plan 2013-2018.

Executive vice chairman of the NCC, Prof. Umar Danbatta, who stated this on his visit to the commission’s office, south-east zonal office in Enugu, Enugu State declared that the country has already achieved 21 per cent broadband penetration, added that the south-east zone would soon begin to witness deployment of fibre infrastructure as part of the implementation of the National Broadband Plan.

Read More

We’ll resist petrol price increase, says NUPENG

Any attempt to increase the price of Premium Motor Spirit, which is popularly known as petrol, will be resisted by the National Union of Petroleum and Natural Gas workers, its President, Mr. Igwe Achese, has said.

Some oil marketers had said that they were not importing petrol due to the fact that its current pump price was not sustainable, as the landing cost of PMS had risen to over N135 per litre.

Read More

Nigeria gains $22m from Bonny Light crude in December

The price of Nigeria’s Bonny Light crude oil was the second highest in December among members of the Organisation of the Petroleum Exporting Counties (OPEC), rising from $42.20 in November to $53.91 per barrel.

This means the country gained about $11.71 per barrel in December. Nigeria therefore may have added $22 million to its foreign exchange earnings when multiplied by current production of 1.9 million barrels per day in December. The gain also boosts Nigeria’s capacity to fund its N7.3 trillion 2017 budget, and if the gains continue, may reduce the dependence on external borrowings to fund the budget and other development projects.

Read More

World Bank Calls for Governance Review In Developing Economies

A new World Bank policy report has called on developing countries and international development agencies to rethink their approach to governance, as a key to overcoming challenges related to security, growth, and equity.

The 2017 World Development Report titled: Governance and the Law explore how unequal distribution of power in a society interferes with policies’ effectiveness. Power asymmetries help explain, for example, why model anti-corruption laws and agencies often fail to curb corruption, why decentralization does not always improve municipal services; or why well-crafted fiscal policies may not reduce volatility and generate long-term savings.

Read More

‘Nipco acquisition of Mobil will boost investor confidence’

The Chief Executive Officer of the Nigerian Stock Exchange, Mr. Oscar Onyema, on Monday said the recent acquisition of ExxonMobil’s 60 per cent stake in Mobil Oil Nigeria by Nipco Plc would ensure continuous investors’ interest in the nation’s capital market.

Onyema described the deal as one of the largest acquisitions in the downstream sector of the oil and gas industry during a courtesy visit by the NSE management team to Nipco in Apapa, Lagos, according to a statement by the company.

Read More

Anger as SON clamps down on phone dealers

There was anger and frustration at the weekend when officials of the Standards Organisation of Nigeria (SON) and policemen clamped down on suspected importers and sellers of substandard phones in the Federal Capital Territory (FCT), Abuja.

Speaking during the enforcement, SON Director-General Osita Anthony Aboloma said substandard goods, if not addressed, could consume the nation, adding that the government will not allow importers of fake phones to defraud consumers.

Read More

OGFZA to grow investment by 80%

THE Oil and Gas Free Zones Authority (OGFZA)said it is poised to achieve 80 per cent increase in investment inflow to the country through the oil and gas free zones. Managing Director of OGFZA, Okon Umana, who stated this at a two-day retreat in Port Harcourt, also said that the Authority has adopted a roadmap to guide its operations in the next four years.

Read More

Reps to probe corruption allegations at NAICOM

The leadership of the House of Representatives has mandated its joint committee on Insurance and Actuarial Matters; Finance and Labour; Employment and Productivity to commence investigations into the protracted face-off between the management of the National Insurance Commission and the workers’ union.

The workers, under the aegis of the Amalgamated Union of Public Corporations, Civil Service, Technical and Recreational Services Employees, had been involved in a prolonged industrial dispute with the management of the commission.

Read More

FG Appoints Goldman, Stanbic to Sell Debut ‘Diaspora Bond’

The federal government has asked Goldman Sachs and Stanbic IBTC Bank to advise it on the planned sale of a debut “diaspora bond” targeted at Nigerians living abroad. Africa’s biggest economy first announced plans to sell bonds targeting Nigerian nationals abroad in 2013 to raise between $100 million to $300 million.

According to Reuters, Goldman Sachs and Stanbic were due to manage the sale at the time, but the government did not appoint any bookrunners ahead of the election in 2015 that brought President Muhammadu Buhari to power.

Read More

Inflation, forex threatening our operation- Ikeja Electric

KEJA Electric Plc, yesterday said inflation, foreign exchange scarcity among other challenges have continued to threaten its operations. This was contained in its sustainability report titled, “Building A Customer-Centric Business-Our Journey to Sustainability”.

Speaking on the report, the chief executive officer, Mr. Anthony Youdeowei said “conditions such as inflation and Foreign Exchange (forex ) fluctuations still pose a liquidity risk to the organisation. Only when all of these scenarios are considered will a robust framework be in place that will benefit the end user – our customers.

Read More

Diesel, aviation fuel prices’ll fall in two weeks – Marketers

The pump prices of diesel and aviation fuel will fall in the next two weeks, oil marketers have said. They also confirmed that the Federal Government was currently subsiding the price of Premium Motor Spirit, popularly known as petrol, adding that marketers were owed over N305bn by the government.

Speaking during a live television programme monitored by our correspondent in Abuja on Monday, the Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Obafemi Olawore, stated that although diesel had been deregulated, the cost of the commodity and that of aviation fuel would come down in two weeks’ time.

Read More

House Orders Expeditious Investigations into Alleged Diversion of $9bn CBN Grant by NDPHC

The House of Representatives Committee on Power has been directed to expedite investigations into alleged diversion of the $9 billion grant received from the Central Bank of Nigeria (CBN) for priority projects by the Niger Delta Power Holding Company (NDPHC).

The committee also had the mandate to investigate alleged contract scam by the power company, particularly, the alleged award of numerous inflated contracts without due process.

Read More

GENCOs, DISCOs, TCN heighten blame game over poor electricity supply

 KEY players in the  electricity sub-sector, generation companies, GENCOs, distribution companies, DISCOs and Transmission Company of Nigeria, TCN, have continued to trade blames over the worsening electricity supply situation in the country.

In the latest blame game, the GENCOs said the DISCOs are unserious on their mandate, while also accusing TCN of inability to transmit electricity due to inadequate and obsolete infrastructure. TCN, on the other hand, said that debt overhang is militating against the efficient power supply by DISCOs.

Read More

Seplat suspends trading on shares for two months

Seplat Petroleum Development Company Plc says dealings on its shares will be in a closed period between January 29, 2017 and expiring on March 30, 2017.

Within this period, dealing on the company’s shares would be suspended. The oil firm said the development was in pursuant to Clause 17.2 of the amendments to the listings rules of the Nigerian Stock Exchange.

Read More

Renewable Energy: Battle For Future Generations

While developed nations are turning away from fossil fuels, developing nations still rely heavily on coal, oil, and natural gas for its energy. Fossil fuels are non-renewable, that is, they draw on finite resources that will eventually dwindle, becoming too expensive or too environmentally damaging to retrieve.

It is our responsibility to conserve energy and save the environment for the generations yet unborn. Energy needs to be conserved to protect our environment from drastic changes, to save the depleting resources for our future generations. The rate at which energy is being produced and consumed can damage our world in many ways.

Read More

Comment here

Economic News Update

Economic News Update: 31st January, 2017

news-brief

Comply with stamp duty ruling, NECA tells CBN

The Nigeria Employers’ Consultative Association has expressed concern over the failure of the Central Bank of Nigeria to comply with the Court of Appeal’s ruling directing all Deposit Money Banks to discontinue charging N50 on every deposit into current accounts above N1,000.

The employers’ group, in a statement on Monday, stated that the banks had failed to obey the court ruling in a case between Kasmal International Services Limited and Access Bank and 23 others.

Read More

NNPC Clarifies Position On Revenue Collection

The Nigerian National Petroleum Corporation (NNPC) yesterday faulted claims that it is involved in the collection of signature bonuses (funds) paid by oil companies to the Federal Government upon their successful bid for oil blocks.

The Group Managing Director of NNPC, Dr Maikanti Baru, said the Corporation had no role in the collection of signature bonus. He explained that it was the Department of Petroleum Resources (DPR), not the NNPC, which was charged with the responsibility of taking receipts of signature bonuses and royalty.

Read More

SEC extends recapitalisation deadline for operators to March this year

Again, the Securities and Exchange Commission (SEC) has announced the extension of the deadline for market operators to comply with the minimum capital requirement by three months, from the initial December 31, 2016. This means that operators have till March 31st to increase their capital base.

The extension followed a plea by stockbrokers, who had requested additional six months to enable them comply successfully. The fact that the market regulator keeps pushing forward the deadline is indicative of the extent of illiquidity in the market, which is characterised by economic meltdown and dwindling purchasing power of the masses, thereby making investment in stocks unattractive.

Read More

Budget: Osinbajo meets Dogara, Senate leader behind closed doors

The Acting President, Yemi Osinbajo, on Monday, met behind closed doors with the Speaker of the House of Representatives, Yakubu Dogara, and the Senate Leader, Ahmed Lawan.

A governor on the platform of the All Progressives Congress also joined the meeting with the acting President. The meeting with Dogara and the governor, which lasted for about 30 minutes, was held inside Osinbajo’s office at the Presidential Villa, Abuja.

Read More

NCC Moves To Achieve 30% Broadband Penetration Next Year

The Nigerian Communications Commission (NCC) said the federal government was committed to delivering broadband for all Nigerians with assurance that the 30 per cent penetration would be achieved next year as enshrined in the National Broadband Plan 2013-2018.

Executive vice chairman of the NCC, Prof. Umar Danbatta, who stated this on his visit to the commission’s office, south-east zonal office in Enugu, Enugu State declared that the country has already achieved 21 per cent broadband penetration, added that the south-east zone would soon begin to witness deployment of fibre infrastructure as part of the implementation of the National Broadband Plan.

Read More

We’ll resist petrol price increase, says NUPENG

Any attempt to increase the price of Premium Motor Spirit, which is popularly known as petrol, will be resisted by the National Union of Petroleum and Natural Gas workers, its President, Mr. Igwe Achese, has said.

Some oil marketers had said that they were not importing petrol due to the fact that its current pump price was not sustainable, as the landing cost of PMS had risen to over N135 per litre.

Read More

Nigeria gains $22m from Bonny Light crude in December

The price of Nigeria’s Bonny Light crude oil was the second highest in December among members of the Organisation of the Petroleum Exporting Counties (OPEC), rising from $42.20 in November to $53.91 per barrel.

This means the country gained about $11.71 per barrel in December. Nigeria therefore may have added $22 million to its foreign exchange earnings when multiplied by current production of 1.9 million barrels per day in December. The gain also boosts Nigeria’s capacity to fund its N7.3 trillion 2017 budget, and if the gains continue, may reduce the dependence on external borrowings to fund the budget and other development projects.

Read More

World Bank Calls for Governance Review In Developing Economies

A new World Bank policy report has called on developing countries and international development agencies to rethink their approach to governance, as a key to overcoming challenges related to security, growth, and equity.

The 2017 World Development Report titled: Governance and the Law explore how unequal distribution of power in a society interferes with policies’ effectiveness. Power asymmetries help explain, for example, why model anti-corruption laws and agencies often fail to curb corruption, why decentralization does not always improve municipal services; or why well-crafted fiscal policies may not reduce volatility and generate long-term savings.

Read More

‘Nipco acquisition of Mobil will boost investor confidence’

The Chief Executive Officer of the Nigerian Stock Exchange, Mr. Oscar Onyema, on Monday said the recent acquisition of ExxonMobil’s 60 per cent stake in Mobil Oil Nigeria by Nipco Plc would ensure continuous investors’ interest in the nation’s capital market.

Onyema described the deal as one of the largest acquisitions in the downstream sector of the oil and gas industry during a courtesy visit by the NSE management team to Nipco in Apapa, Lagos, according to a statement by the company.

Read More

Anger as SON clamps down on phone dealers

There was anger and frustration at the weekend when officials of the Standards Organisation of Nigeria (SON) and policemen clamped down on suspected importers and sellers of substandard phones in the Federal Capital Territory (FCT), Abuja.

Speaking during the enforcement, SON Director-General Osita Anthony Aboloma said substandard goods, if not addressed, could consume the nation, adding that the government will not allow importers of fake phones to defraud consumers.

Read More

OGFZA to grow investment by 80%

THE Oil and Gas Free Zones Authority (OGFZA)said it is poised to achieve 80 per cent increase in investment inflow to the country through the oil and gas free zones. Managing Director of OGFZA, Okon Umana, who stated this at a two-day retreat in Port Harcourt, also said that the Authority has adopted a roadmap to guide its operations in the next four years.

Read More

Reps to probe corruption allegations at NAICOM

The leadership of the House of Representatives has mandated its joint committee on Insurance and Actuarial Matters; Finance and Labour; Employment and Productivity to commence investigations into the protracted face-off between the management of the National Insurance Commission and the workers’ union.

The workers, under the aegis of the Amalgamated Union of Public Corporations, Civil Service, Technical and Recreational Services Employees, had been involved in a prolonged industrial dispute with the management of the commission.

Read More

FG Appoints Goldman, Stanbic to Sell Debut ‘Diaspora Bond’

The federal government has asked Goldman Sachs and Stanbic IBTC Bank to advise it on the planned sale of a debut “diaspora bond” targeted at Nigerians living abroad. Africa’s biggest economy first announced plans to sell bonds targeting Nigerian nationals abroad in 2013 to raise between $100 million to $300 million.

According to Reuters, Goldman Sachs and Stanbic were due to manage the sale at the time, but the government did not appoint any bookrunners ahead of the election in 2015 that brought President Muhammadu Buhari to power.

Read More

Inflation, forex threatening our operation- Ikeja Electric

KEJA Electric Plc, yesterday said inflation, foreign exchange scarcity among other challenges have continued to threaten its operations. This was contained in its sustainability report titled, “Building A Customer-Centric Business-Our Journey to Sustainability”.

Speaking on the report, the chief executive officer, Mr. Anthony Youdeowei said “conditions such as inflation and Foreign Exchange (forex ) fluctuations still pose a liquidity risk to the organisation. Only when all of these scenarios are considered will a robust framework be in place that will benefit the end user – our customers.

Read More

Diesel, aviation fuel prices’ll fall in two weeks – Marketers

The pump prices of diesel and aviation fuel will fall in the next two weeks, oil marketers have said. They also confirmed that the Federal Government was currently subsiding the price of Premium Motor Spirit, popularly known as petrol, adding that marketers were owed over N305bn by the government.

Speaking during a live television programme monitored by our correspondent in Abuja on Monday, the Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Obafemi Olawore, stated that although diesel had been deregulated, the cost of the commodity and that of aviation fuel would come down in two weeks’ time.

Read More

House Orders Expeditious Investigations into Alleged Diversion of $9bn CBN Grant by NDPHC

The House of Representatives Committee on Power has been directed to expedite investigations into alleged diversion of the $9 billion grant received from the Central Bank of Nigeria (CBN) for priority projects by the Niger Delta Power Holding Company (NDPHC).

The committee also had the mandate to investigate alleged contract scam by the power company, particularly, the alleged award of numerous inflated contracts without due process.

Read More

GENCOs, DISCOs, TCN heighten blame game over poor electricity supply

 KEY players in the  electricity sub-sector, generation companies, GENCOs, distribution companies, DISCOs and Transmission Company of Nigeria, TCN, have continued to trade blames over the worsening electricity supply situation in the country.

In the latest blame game, the GENCOs said the DISCOs are unserious on their mandate, while also accusing TCN of inability to transmit electricity due to inadequate and obsolete infrastructure. TCN, on the other hand, said that debt overhang is militating against the efficient power supply by DISCOs.

Read More

Seplat suspends trading on shares for two months

Seplat Petroleum Development Company Plc says dealings on its shares will be in a closed period between January 29, 2017 and expiring on March 30, 2017.

Within this period, dealing on the company’s shares would be suspended. The oil firm said the development was in pursuant to Clause 17.2 of the amendments to the listings rules of the Nigerian Stock Exchange.

Read More

Renewable Energy: Battle For Future Generations

While developed nations are turning away from fossil fuels, developing nations still rely heavily on coal, oil, and natural gas for its energy. Fossil fuels are non-renewable, that is, they draw on finite resources that will eventually dwindle, becoming too expensive or too environmentally damaging to retrieve.

It is our responsibility to conserve energy and save the environment for the generations yet unborn. Energy needs to be conserved to protect our environment from drastic changes, to save the depleting resources for our future generations. The rate at which energy is being produced and consumed can damage our world in many ways.

Read More

Comment here