19 Jan

Daily Watch – Oil component of Budget under threat, Farmers return to North-East

The current dip in oil prices will significantly reduce the Federal Government’s take from the profits of oil and gas companies this year, raising further questions about the viability of the 2016 budget document. Oil prices at less than $28 per barrel, make production unprofitable for many smaller Nigerian companies that pump at a cost of $30 per barrel and incur extra security costs to protect installations, analysts say. Oil majors, such as Shell and Exxon

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18 Jan

Daily Watch – Buhari seeks Budget withdrawal, JTF searches for pipeline saboteurs in Warri

Despite the CBN’s relaxation of foreign currency deposits a week ago, bank customers are being cautious bout making cash deposits into their domiciliary accounts. The CBN had on August 5, 2015, banned the payment of foreign currency into domiciliary accounts. Analysts say the lack of certainty about whether customers could transfer or do transactions with the deposits was the major factor discouraging foreign currency deposits by customers. However, while

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15 Jan

Sifting facts from sentiments over Biafra, can it work?

Nigeria became a unified country in 1914. Since then the country has faced some serious trials against its unity, the most serious during the civil war which took place 1967 – 1970. It was a war that resulted after one of 4 regions at the time (the Eastern Igbo-dominated region) sought to secede from Nigeria after years of political unrest. This secession attempt was the culmination of the various contradictions within the Nigerian state. Before the Igbo secession

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15 Jan

The week ahead – Violence continues unabated in the Middle Belt

2015 ended on a rather mixed note for the counter insurgency operations in the North East. The deadline declared by President Buhari’s government to end the insurgency by December 31st never fully materialized as Boko Haram are still very active in at least two local governments areas of Borno state. In effect though, the military has curtailed their supply routes, decimated their camps and kept them on the back foot, but importantly, the terrorists’ freedom

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15 Jan

Daily Watch – Innoson sheds jobs, Vehicle imports drop 67%

Nigeria’s first fully indigenous vehicle manufacturing company, Innoson Vehicle Manufacturing, has laid off about 50 percent of its work force. A change in government policy, the high cost of the American dollar, and difficulties in procuring foreign exchange for imported vehicle components are some of the reasons attributed for the dwindling fortunes of the company. Innoson got plenty of patronage under both the governments of Goodluck Jonathan and Peter Obi

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14 Jan

Analysis – Following yesterday’s ASI Armageddon, where next?

Yesterday was an eventful day in the Nigerian equity market. As news trickled into the various global financial centres that newly released US data showed a rise in crude inventories, oil prices began to tank. Brent crude eventually closed at $30.46, down 1.3% for the day and 20% for the year. This is also the lowest price for oil in 12 years.

By the end of trading at the Nigerian Stock Exchange, the ASI had depreciated by 3.58% to 25,103.05 points, with only 3 stocks

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14 Jan

Daily Watch – States can exploit minerals, Bears having fun at the NSE

The Minister of Mines and Steel Development, Dr. Kayode Fayemi has disclosed that state governments are now free to explore and exploit mineral deposits in their domains, provided they go about such in a legal manner that will not interfere with locations already given to other stakeholders. While acknowledging that the Federal Government enjoys exclusive rights to mine minerals across the country, Fayemi noted that the Constitution encourages states to either

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13 Jan

Daily Watch – Senate chops down lassa fever vote, 2016 Appropriation Bill goes AWOL

The Senate has thrown out a motion seeking to compel the FG to freely distribute rat poison to Nigerians as a way of fighting the spread of Lassa fever. Senator Olanrewaju Tejuoso (APC, Ogun Central) had suggested the free distribution of the rat poison, because according to him, the poverty levels in Nigeria discourages citizens from buying rat poisons. However his colleagues struck down the motion in a voice vote. A recent epidemic of the disease has affected

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12 Jan

Daily Watch – CBN modifies its game plan, Airports go to waste

The CBN has announced that it will be stopping the sale of foreign exchange to BDC operators. It also lifted the ban on the reception of foreign currency deposits in domiciliary accounts. These decisions come two days after the regulator said it was exploring options for its next move, and disclosed that it will be supporting Dangote Refineries and other Nigerians it believed to be creating value locally. The regulator also explained that the drop in oil prices

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11 Jan

Daily Watch – Oil output declines in December, Cocoa processors worry over rising costs

Industry analysts say that the proposed oil revenue in the 2016 budget may not be feasible as Nigeria’s crude exports begin to fall amid further slide in global oil prices. President Buhari had in the 2016 to 2018 Medium Term Expenditure Framework and Fiscal Strategy Paper sent to the National Assembly for this year’s budget said oil-related revenues were expected to contribute N820 billion to the nation’s

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