Economic News Update

Economic News Update: Friday 13th January, 2017

news-brief

Nigeria’ll recover from recession this year, NSE predicts

The Nigerian Stock Exchanges has expressed optimism that the country’s economy will recover from its current recession this year with a modest Gross Domestic Product growth forecast of 0.6 per cent.

The recovery, according to the bourse, will be driven by the vigour of fiscal policy implementation, with a keen focus on articulation of desired goals; lower rates of disruptions to oil infrastructure as a result of the resolution of the Niger Delta conflict; crude oil prices remaining above the Federal Government’s benchmark of $42.5 per barrel; and positive impact of the war against corruption manifested in the improvement in the ease of doing business in the country.

Read More

NNPC proposes 28% oil royalty

In a bid to shore up government revenue, the Nigerian National Petroleum Corporation (NNPC) is proposing to increase Deep Offshore and Inland Basin Production Sharing Contract (PSC) Act by up to 28 per cent.

NNPC Chief Operating Officer (CEO), Mallam  Bello Rabiu, stated this in a presentation to the Joint House of Representatives committees on the amendment of the PSC Act and an Act to establish the National Oil and Gas Museum and Research Centre in Oloibiri. Rabiu noted that it was imperative to effect increment in royalties across all categories to increase government’s take and optimise the collection of royalties and other revenue in deep water oil production activities.

Read More

SEC warns against investment in Bitcoin, Swisscoin, others

THE Securities and Exchange Commission, SEC, has warned Nigerians against the risk involved in investing in digital currencies such as Swisscoin, OneCoin and Bitcoin, as vehicles of investment.

In a public notice on its website, SEC said that none of the individuals or companies promoting the use of the currencies is recognized by it or any other regulatory agency in the country. Such digital currencies, otherwise known as Cryptocurrency, is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Bitcoin became the first decentralized cryptocurrency in 2009.

Read More

Customs N898bn 2016 Revenue Lowest In 2yrs

The Nigeria Customs Service (NCS) has generated N898 billion as revenue in 2016, including Value Added Tax (VAT)as against the N937 billion revenue target the service set for itself in the year under review. But LEADERSHIP Friday’s investigation had shown that the revenue generated was the lowest in two years as the service had generated N977.09 billion in 2014; N904 billion in 2015, but could only generate N898 billion in 2016, including VAT.

Speaking in Abuja this week, the NCS spokesman, Joseph Attah said that the figure was, however, less than the N904 billion collected in 2015. He attributed the shortfall to the difficulty in accessing foreign exchange and restriction on importers of 41 items from the Central Bank of Nigeria (CBN)’s foreign exchange window.

Read More

FG seeks licence from CBN for development bank

The Federal Government has applied to the Central Bank of Nigeria for the issuance of an operational licence to the Development Bank of Nigeria preparatory to its commencement of operations.

This was confirmed in a statement issued by the Director of Information in the Federal Ministry of Finance, Salisu Dambatta, in Abuja on Thursday.

Read More

NSE working with MTN on 2017 listing –Onyema

Nigerian Stock Exchange (NSE) said it is working “very closely” with South African cell operator, MTN, on a listing of its shares in the country this year, the head of the bourse said on Thursday.

“The pressure on MTN has never been higher to list,” NSE Chief Executive, Oscar Onyema, told a business conference. “There’s a project team working with them.” Africa’s biggest mobile phone operator has said it aims to list its Nigerian unit on the local bourse during 2017, subject to market conditions.

Read More

NIMASA Redeploys Directors, Management Staff

The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA) Dr. Dakuku Peterside has approved the redeployment of some senior management staff of the agency.

According to the DG, the new postings are expected to reposition the agency towards meeting its statutory mandate as enshrined in the NIMASA Act and other enabling instruments.

Read More

CBN to resume dollar sales to BDCs next week

THE Central Bank of Nigeria (CBN) will resume sales of dollar proceeds of international money transfer (IMT) to bureaux de change (BDC) operators next week.

CBN Governor, Mr. Godwin Emefiele, disclosed this during a meeting with executives of Association of Bureaux De Change Operators of Nigeria (ABCON). President, Aminu Gwadabe, confirmed this to Vanguard, saying that the CBN governor also dismissed as untrue speculations that the apex bank would reintroduce mandatory caution deposit of N35 million.

Read More

Textile industry under threat from polyester scarcity, others

The current scarcity of polyester is threatening the survival of textile industry in Nigeria, investigation has revealed. Polyester fibre is used as cushioning and insulating material in pillows, comforters and upholstery padding. It has high tenacity and durability and can withstand strong and repetitive movements.

But the material, according to operators, is scarce because local production is not sufficient to meet its demand. Operators are also said to be having challenges accessing foreign exchange, making it difficult for them to procure essential raw materials.

Read More

Bank challenges N3.1b disclosure order against Zamfara State funds

United Bank for Africa (UBA) yesterday challenged the garnishee proceeding filed by Ecobank against Zamfara State government over N3.1 billion debt at the Federal High Court, Lagos. The bank challenged the proceedings through a preliminary objection. As a result, the court fixed January 17 to hear the objection and all other pending applications.

Ecobank had commenced the garnishee proceeding against the state, seeking to recover the debt.Joined as defendants in the suit are Zamfara State’s Attorney-General, Zamfara State Ministry of Finance, Federal Ministry of Finance, Accountant-General of the Federation, Attorney-General of the Federation and Central Bank of Nigeria.

Read More

Customs Beef Up Security to Enforce Ban on Vehicle Importation

In a bid to enforce the ban on the importation of vehicles through the land borders, the Nigeria Customs Service (NCS) has directed its Headquarters Compliance Team and Federal Operation Units to join the resident officers of land borders to tackle violators of the new policy.

Comptroller General of Customs, Col. Hameed Ibrahim Ali (rtd), who gave the order in a statement, said despite the fact that Nigeria’s bigger and more equipped port facilities, statistics has shown that more than 90 per cent of vehicles imported to neighbouring countries are normally on transit to Nigerian market.

Read More

Govt to appoint transaction advisers for national carrier

The Federal Government says it has budgeted the sum of N5.8bn for the repair of the runway at the Nnamdi Azikiwe International Airport, Abuja.

The Minister of Transportation, Rotimi Amaechi; and the Minister of State for Aviation, Hadi Sirika, appeared before the Senate on Thursday to give explanation on the planned closure of the Abuja airport and the diversion of flights to the Kaduna airport.

Read More

Development Bank takes off with $1.3bn

Hopes of better funding for Micro, Small and Medium Enterprises (MSMEs) in the country brightened yesterday as the Finance Minister, Mrs. Kemi Adeosun, confirmed the completion of recruitment exercise for the executive management team of the Development Bank of Nigeria (DBN), which will take off with $1.3 billion (N396.5 billion).

She said that the bank has formally applied for the issuance of its operational license from the Central Bank of Nigeria (CBN), which may be approved soon. The DBN was conceived in 2014 by the Goodluck Jonathan administration but suffered delayed take-off for various reasons.

Read More

LCCI, ministry offer students platform to discuss economy

A pool of young students drawn from various secondary schools in Lagos bared their minds about the fix Nigeria had fallen into for being a mono-product economy.

Although barely in their teens, they understand the danger the country has been surrounded with and the challenges it is currently facing as a result of what they call ‘problem with oil.’

Read More

FG Loses N43. 48bn Foreign Airlines BASA Remittances

The federal government may have lost over N43.48 billion ($144 million) remittances paid by international airlines as reciprocity charges in the Bilateral Air Service Agreement (BASA) from 2014 to the end of 2016 due to the decision of the Ministry of Transport to stop collecting the charges without providing alternative payment platform for the airlines.

These are royalty payments for the frequencies operated by the foreign airlines from Nigeria to destinations where there are no corresponding reciprocity from Nigerian airlines. The payments are calculated per passenger and over the years millions of dollars have accrued to Nigeria, which were used for airport and other aviation development. These funds used to be in the custody of the defunct Nigeria Airways Limited (NAL) before it was liquidated.

Read More

Revival of Supplementary Listings, New IPOs Coming In 2017 – Onyema

The chief executive officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema has said the stock market would witness the revival of supplementary listings, return of new issuance through initial public offerings (IPOs) in 2017. He made this known yesterday in Lagos at the 2016 Market Recap & Outlook for 2017.

Onyema said, “We expect to see a revival of supplementary listings, return of the new issuance market, and potentially IPO since the equity market is a forward indicator of the economy. We are cautiously optimistic, as consensus estimates suggest a moderate recovery for Nigeria in 2017, provided that policy makers implement the right combination of policy measures.”

Read More

FG insists on Abuja airport closure, Senate kicks

The Federal Government says it has budgeted the sum of N5.8bn for the repair of the runway at the Nnamdi Azikiwe International Airport, Abuja.

The Minister of Transportation, Rotimi Amaechi; and the Minister of State for Aviation, Hadi Sirika, appeared before the Senate on Thursday to give explanation on the planned closure of the Abuja airport and the diversion of flights to the Kaduna airport.

Read More

Tin-can Island Customs Generates N266bn in One Year

The Nigerian Custom Service (NCS), Tin Can Island Port command has announced that it generated a total N256.41 billion from January to December 31, 2016. This is against the N266.18 billion it recorded in 2015, representing a marginal difference of less than N10 billion. Area Controller of the command, Comptroller Bashar Yusuf in a statement said the revenue shortfall is attributable to some factors beyond the control of the command.

The Tincan Island Command of the NCS, he said, is statutorily charged with the responsibilities of collecting/generating revenue from all dutiable imports, accounting for same as well as facilitation of legitimate trade.

Read More

Comment here

Economic News Update

Economic News Update: Friday 13th January, 2017

news-brief

Nigeria’ll recover from recession this year, NSE predicts

The Nigerian Stock Exchanges has expressed optimism that the country’s economy will recover from its current recession this year with a modest Gross Domestic Product growth forecast of 0.6 per cent.

The recovery, according to the bourse, will be driven by the vigour of fiscal policy implementation, with a keen focus on articulation of desired goals; lower rates of disruptions to oil infrastructure as a result of the resolution of the Niger Delta conflict; crude oil prices remaining above the Federal Government’s benchmark of $42.5 per barrel; and positive impact of the war against corruption manifested in the improvement in the ease of doing business in the country.

Read More

NNPC proposes 28% oil royalty

In a bid to shore up government revenue, the Nigerian National Petroleum Corporation (NNPC) is proposing to increase Deep Offshore and Inland Basin Production Sharing Contract (PSC) Act by up to 28 per cent.

NNPC Chief Operating Officer (CEO), Mallam  Bello Rabiu, stated this in a presentation to the Joint House of Representatives committees on the amendment of the PSC Act and an Act to establish the National Oil and Gas Museum and Research Centre in Oloibiri. Rabiu noted that it was imperative to effect increment in royalties across all categories to increase government’s take and optimise the collection of royalties and other revenue in deep water oil production activities.

Read More

SEC warns against investment in Bitcoin, Swisscoin, others

THE Securities and Exchange Commission, SEC, has warned Nigerians against the risk involved in investing in digital currencies such as Swisscoin, OneCoin and Bitcoin, as vehicles of investment.

In a public notice on its website, SEC said that none of the individuals or companies promoting the use of the currencies is recognized by it or any other regulatory agency in the country. Such digital currencies, otherwise known as Cryptocurrency, is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Bitcoin became the first decentralized cryptocurrency in 2009.

Read More

Customs N898bn 2016 Revenue Lowest In 2yrs

The Nigeria Customs Service (NCS) has generated N898 billion as revenue in 2016, including Value Added Tax (VAT)as against the N937 billion revenue target the service set for itself in the year under review. But LEADERSHIP Friday’s investigation had shown that the revenue generated was the lowest in two years as the service had generated N977.09 billion in 2014; N904 billion in 2015, but could only generate N898 billion in 2016, including VAT.

Speaking in Abuja this week, the NCS spokesman, Joseph Attah said that the figure was, however, less than the N904 billion collected in 2015. He attributed the shortfall to the difficulty in accessing foreign exchange and restriction on importers of 41 items from the Central Bank of Nigeria (CBN)’s foreign exchange window.

Read More

FG seeks licence from CBN for development bank

The Federal Government has applied to the Central Bank of Nigeria for the issuance of an operational licence to the Development Bank of Nigeria preparatory to its commencement of operations.

This was confirmed in a statement issued by the Director of Information in the Federal Ministry of Finance, Salisu Dambatta, in Abuja on Thursday.

Read More

NSE working with MTN on 2017 listing –Onyema

Nigerian Stock Exchange (NSE) said it is working “very closely” with South African cell operator, MTN, on a listing of its shares in the country this year, the head of the bourse said on Thursday.

“The pressure on MTN has never been higher to list,” NSE Chief Executive, Oscar Onyema, told a business conference. “There’s a project team working with them.” Africa’s biggest mobile phone operator has said it aims to list its Nigerian unit on the local bourse during 2017, subject to market conditions.

Read More

NIMASA Redeploys Directors, Management Staff

The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA) Dr. Dakuku Peterside has approved the redeployment of some senior management staff of the agency.

According to the DG, the new postings are expected to reposition the agency towards meeting its statutory mandate as enshrined in the NIMASA Act and other enabling instruments.

Read More

CBN to resume dollar sales to BDCs next week

THE Central Bank of Nigeria (CBN) will resume sales of dollar proceeds of international money transfer (IMT) to bureaux de change (BDC) operators next week.

CBN Governor, Mr. Godwin Emefiele, disclosed this during a meeting with executives of Association of Bureaux De Change Operators of Nigeria (ABCON). President, Aminu Gwadabe, confirmed this to Vanguard, saying that the CBN governor also dismissed as untrue speculations that the apex bank would reintroduce mandatory caution deposit of N35 million.

Read More

Textile industry under threat from polyester scarcity, others

The current scarcity of polyester is threatening the survival of textile industry in Nigeria, investigation has revealed. Polyester fibre is used as cushioning and insulating material in pillows, comforters and upholstery padding. It has high tenacity and durability and can withstand strong and repetitive movements.

But the material, according to operators, is scarce because local production is not sufficient to meet its demand. Operators are also said to be having challenges accessing foreign exchange, making it difficult for them to procure essential raw materials.

Read More

Bank challenges N3.1b disclosure order against Zamfara State funds

United Bank for Africa (UBA) yesterday challenged the garnishee proceeding filed by Ecobank against Zamfara State government over N3.1 billion debt at the Federal High Court, Lagos. The bank challenged the proceedings through a preliminary objection. As a result, the court fixed January 17 to hear the objection and all other pending applications.

Ecobank had commenced the garnishee proceeding against the state, seeking to recover the debt.Joined as defendants in the suit are Zamfara State’s Attorney-General, Zamfara State Ministry of Finance, Federal Ministry of Finance, Accountant-General of the Federation, Attorney-General of the Federation and Central Bank of Nigeria.

Read More

Customs Beef Up Security to Enforce Ban on Vehicle Importation

In a bid to enforce the ban on the importation of vehicles through the land borders, the Nigeria Customs Service (NCS) has directed its Headquarters Compliance Team and Federal Operation Units to join the resident officers of land borders to tackle violators of the new policy.

Comptroller General of Customs, Col. Hameed Ibrahim Ali (rtd), who gave the order in a statement, said despite the fact that Nigeria’s bigger and more equipped port facilities, statistics has shown that more than 90 per cent of vehicles imported to neighbouring countries are normally on transit to Nigerian market.

Read More

Govt to appoint transaction advisers for national carrier

The Federal Government says it has budgeted the sum of N5.8bn for the repair of the runway at the Nnamdi Azikiwe International Airport, Abuja.

The Minister of Transportation, Rotimi Amaechi; and the Minister of State for Aviation, Hadi Sirika, appeared before the Senate on Thursday to give explanation on the planned closure of the Abuja airport and the diversion of flights to the Kaduna airport.

Read More

Development Bank takes off with $1.3bn

Hopes of better funding for Micro, Small and Medium Enterprises (MSMEs) in the country brightened yesterday as the Finance Minister, Mrs. Kemi Adeosun, confirmed the completion of recruitment exercise for the executive management team of the Development Bank of Nigeria (DBN), which will take off with $1.3 billion (N396.5 billion).

She said that the bank has formally applied for the issuance of its operational license from the Central Bank of Nigeria (CBN), which may be approved soon. The DBN was conceived in 2014 by the Goodluck Jonathan administration but suffered delayed take-off for various reasons.

Read More

LCCI, ministry offer students platform to discuss economy

A pool of young students drawn from various secondary schools in Lagos bared their minds about the fix Nigeria had fallen into for being a mono-product economy.

Although barely in their teens, they understand the danger the country has been surrounded with and the challenges it is currently facing as a result of what they call ‘problem with oil.’

Read More

FG Loses N43. 48bn Foreign Airlines BASA Remittances

The federal government may have lost over N43.48 billion ($144 million) remittances paid by international airlines as reciprocity charges in the Bilateral Air Service Agreement (BASA) from 2014 to the end of 2016 due to the decision of the Ministry of Transport to stop collecting the charges without providing alternative payment platform for the airlines.

These are royalty payments for the frequencies operated by the foreign airlines from Nigeria to destinations where there are no corresponding reciprocity from Nigerian airlines. The payments are calculated per passenger and over the years millions of dollars have accrued to Nigeria, which were used for airport and other aviation development. These funds used to be in the custody of the defunct Nigeria Airways Limited (NAL) before it was liquidated.

Read More

Revival of Supplementary Listings, New IPOs Coming In 2017 – Onyema

The chief executive officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema has said the stock market would witness the revival of supplementary listings, return of new issuance through initial public offerings (IPOs) in 2017. He made this known yesterday in Lagos at the 2016 Market Recap & Outlook for 2017.

Onyema said, “We expect to see a revival of supplementary listings, return of the new issuance market, and potentially IPO since the equity market is a forward indicator of the economy. We are cautiously optimistic, as consensus estimates suggest a moderate recovery for Nigeria in 2017, provided that policy makers implement the right combination of policy measures.”

Read More

FG insists on Abuja airport closure, Senate kicks

The Federal Government says it has budgeted the sum of N5.8bn for the repair of the runway at the Nnamdi Azikiwe International Airport, Abuja.

The Minister of Transportation, Rotimi Amaechi; and the Minister of State for Aviation, Hadi Sirika, appeared before the Senate on Thursday to give explanation on the planned closure of the Abuja airport and the diversion of flights to the Kaduna airport.

Read More

Tin-can Island Customs Generates N266bn in One Year

The Nigerian Custom Service (NCS), Tin Can Island Port command has announced that it generated a total N256.41 billion from January to December 31, 2016. This is against the N266.18 billion it recorded in 2015, representing a marginal difference of less than N10 billion. Area Controller of the command, Comptroller Bashar Yusuf in a statement said the revenue shortfall is attributable to some factors beyond the control of the command.

The Tincan Island Command of the NCS, he said, is statutorily charged with the responsibilities of collecting/generating revenue from all dutiable imports, accounting for same as well as facilitation of legitimate trade.

Read More

Comment here