16 Mar

Daily Watch – Inflation enters double digits, Ghana moves against Nigerian cement

The Consumer Price Index, which measures inflation, hit 11.4 percent in February. The CPI report, released on Tuesday by the National Bureau of Statistics, showed that the “significant uptick” recorded in the headline index last month was roughly 1.76 points higher from the 9.6 percent recorded in January. “The faster pace of increases which led to the overall increase in the headline index were recorded across almost all major divisions which contribute

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15 Mar

Daily Watch – NASS settles on $36 budget benchmark, Ogun workers strike on

BusinessDay is reporting that the National Assembly has adopted a $36 per barrel oil benchmark for the 2016 budget as against the $38 benchmark earlier proposed by the Executive. This conservative stance is aimed at reflecting the current realities of crude oil price at the international market. The National Assembly has promised to pass the 2016 Appropriation Bill on Thursday, rekindling hope for economic activity, especially for the critical sectors of the

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14 Mar

Analysis – What is going on with Nigeria’s power?

In the final week of the Goodluck Jonathan Administration, power generation in Nigeria fell to a record low of 1,320MW amidst a crippling month-long fuel scarcity that eventually caused vital businesses such as telecoms and banks to ration fuel and shut down services earlier than they should.

Power grows under Buhari – the body language conundrum Weeks after President Buhari was sworn in, power generation and supply increased until it reached

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14 Mar

Daily Watch – Nigeria promises to punish economic saboteurs, Poultry supply gap means more smuggling

Nigeria has warned that it will deal ruthlessly with people involved in pipeline vandalism and the sabotage of power infrastructure, both of which have combined to drastically reduce power generation/transmission as well as fuel supplies last week, resulting in the economy almost grinding to a halt. In a statement issued in Abuja on Sunday, the Minister of Information and Culture, Lai Mohammed, said the repeated attacks on oil and gas pipelines and the wilful

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11 Mar

The week ahead – Following due process will save us from needless headaches

Economic activities across the country took a severe blow this week following a strike embarked upon by the Nigerian Labour Congress (NLC) and affiliate groups during which electricity installations and petroleum depots belonging to the Nigerian National Petroleum Corporation (NNPC) were shut down. The angry workers barricaded offices and facilities of the NNPC protesting the government’s plan to split the NNPC into several other business units. However, the

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11 Mar

Daily Watch – Naira “stabilises” at 320 per USD, MTN winks at NCC

The NNPC staff union has suspended its industrial action, which shut down all facilities of the corporation on Wednesday. Announcing the end of the strike action, NNPC, via its Twitter handle, said the unions are now ready to work in the restructuring of a new NNPC. Both the NNPC staff union and the National Assembly had accused the Federal government of violating the NNPC Act of 1977 which established the NNPC. The NNPC Act specifically states that the Act or

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10 Mar

Daily Watch – Lagos seals Lekki Gardens over building collapse, NNPC restructuring causes labour dispute

Minister of State for Petroleum Resources, Emmanuel Kachikwu has explained that the unbundling exercise to be carried out by the FG on the NNPC has not yet kicked off. Kachikwu said, “We have not unbundled NNPC. We had a press conference yesterday where I explained this. What we have simply done is re-organisation. We have five business entities focused on business: Upstream, Downstream, Refineries, Gas and Power that were there before. There is also Ventures

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09 Mar

Daily Watch – GDP growth rate hits 16-year low, NNPC broken up

Nigeria’s GDP growth rate has fallen to a 16-year low of 2.815 percent – the lowest since the return of democracy in 1999. According to the World Bank, Nigeria’s GDP growth rate for 1999 stood at 0.47 percent and peaked in 2004 at 33.7 percent, growing at an average of six percent from 2005 to 2013. However, the NBS GDP report released on Tuesday shows that the GDP growth rate sunk to its lowest since the beginning of the fourth republic – lower than

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08 Mar

Daily Watch – Oil rises to $40, Kwara looks at housing

The global benchmark for crude oil, Brent crude, has risen above the proposed benchmark oil price of $38 per barrel for the 2016 budget. Brent had consistently traded below the $38 per barrel mark since mid-December 2015, and actually fell below $30 per barrel in January, its lowest price in more than a decade. Following the sustained decline in the price of oil, there have been several calls for a downward review of the benchmark. The increase in the oil price

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07 Mar

Daily Watch – Nigerian banks facing tough times over letters of credit, Telephone user-base increases

Nigerian banks are facing one of the most serious threats to their international reputation. Banks can no longer access foreign exchange to pay their financial obligations to foreign lenders. According to Reuters, banks looking for American dollars to repay letters of credit to their foreign lenders have been delayed for as much as a week compared to just a day or two in the past. Banks have attributed this to the CBN’s dollar rationing and strict capital

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