08 Dec

Daily Watch – FG to break NNPC up in new PIB, Budget pegged at N6 trillion

  • The FG will break up the Petroleum Industry Bill and replace it first with a law to overhaul the NNPC and close loopholes that breed corruption. According to the Reuters news agency, the NNPC will be split in two – rather than a series of units as envisaged by the stalled 2012 Bill – including a National Oil Company that will be run on commercial lines and partly privatised. The inability to pass the PIB has stunted investment, particularly in deep-water oil and gas fields. The new Bill is expected to be presented to senators this week.
  • The Federal Executive Council has decided on a N6 trillion budget for next year, up from N4.5 trillion in 2015, out of which 30 percent will be allocated for capital expenditure. Nigeria is facing its worst economic crisis in years brought on by the sharp fall in crude prices. Budget and Planning Minister Udoma Udo Udoma said that the cabinet was assuming a conservative oil price of $38 a barrel and oil production at 2.2 million barrels per day.
  • The naira traded at N250 per American dollar on the unofficial market, just up from Friday‚Äôs low of N251, as dollar shortages hit bureaux de change operators. Nearly half of 2,818 bureaux de change operators were denied access to the CBN’s dollar sale last week because of incomplete documentation, weakening the naira. Traders expect dollar allocation to bureaux de change agents to increase on Wednesday as companies update their records with the central bank.
  • The Independent National Electoral Commission has declared the Bayelsa State governorship election as inconclusive. INEC also cancelled the election held in Southern Ijaw local government area on Sunday, December 6. INEC officials led by the REC, Prof Zana, had earlier announced results from seven of the eight local government area in the state with Peoples Democratic Party governorship candidate and incumbent, Seriake Dickson in the lead. Dickson claimed victory in six of the LGAs while his main challenger, Timipre Sylva managed to win one LGA.