31 May

Daily Watch – Customs to use higher exchange rate, Buhari to visit Ogoni region

  • The Nigerian Customs has announced that it will begin to use the rate of N285 to the American dollar for the calculation of duty on all imports from tomorrow, June 1. This is seen as further evidence of the implicit adjustment of the value of the Naira which had remained pegged at N199 for almost a year. The CBN has announced that it will work out modalities for the
................   read more

27 May

A year after, we look at Buhari’s 170 promises

“Tough times will soon be over,” President Buhari declared during his 2016 Workers Day address to Nigerians. These are tough times indeed for Africa’s largest economy. A quick scan through key economic indicators as highlighted in the table below show steep declines in GDP growth, oil production and revenues over the past 12 months, whereas inflation rates have risen by a whopping 4.5% in the same time period.

May 2016 May 2015 Variance
Inflation 13.70% 9.20% 4.50%
GDP Growth Rate -0.36% 3.96% 3.59%
NGN/USD Exchange Rate (Official) 197.00 197.00
NGN/USD Exchange Rate (Parallel) 350.00 220.50 129.50
Foreign Reserves ($bn) 27.1 29.6 (2.5)
Oil Production (Mb/day) 1.4 1.65 (0.25)
FAAC (Nbn) 409.3 281.5 127.80

The country’s over-dependence on oil has been chastised................   read more

27 May

The week ahead – Damage is being done in the states

During the week, the Nigerian Governors Forum reached out to the Country Director of the World Bank, Rachid Benmessaoud. Many states in the country, for example, have found it difficult to pay workers’ salaries. The governors’ invitation to Benmessaoud was about a $3.25 billion fund, which is currently lying idle. The money, which was largely set aside for the state governments, has not been accessed because of the cumbersome procedures involved. Added to that,................   read more

27 May

Daily Watch – Lagos to Houston flights end, States agree to weed out ghost workers

  • United Airlines will stop flying to Nigeria next month, ending the carrier’s only route to the African continent because of weakness in the energy sector and difficulties in collecting money from tickets sold in Nigeria. According to Bloomberg, the daily route from Houston to Lagos had underachieved for years but was kept alive because of its importance to Texas-based customers. The last flight will be June 30, after which Delta Airlines. will be the only major
................   read more

26 May

Daily Watch – Another fuel crisis cometh, As does 4th Mainland Bridge

  • The Cable is reporting that oil marketers have not resumed importation of petrol despite the increase in price, bringing up the spectre of another petrol crisis. The newspaper quoted an unnamed government official as describing the actions of the marketers as “a stab in the back.” The NNPC had been the sole importer of petrol, but a crippling crisis ensued as the corporation was overwhelmed by the volume of importation. To resolve the crisis, marketers –
................   read more

25 May

Daily Watch – CBN adopts ‘flexible forex rate’, Fayose wants other governors to ban grazing

  • CBN Governor, Godwin Emefiele, has announced that the CBN will adopt a “flexible foreign exchange rate” regime in an apparent admission of policy failure and a belated response to the current economic disaster that the country is in. Following the conclusion of the CBN-MPC meeting, Emefiele explained that, “The MPC voted unanimously to adopt a flexible exchange rate policy to restore the automatic adjustment properties of the exchange rate.” He also said
................   read more

24 May

Daily Watch – Foreign airlines have half a billion USD trapped in Nigeria, NEITI indicts NNPC

  • Details from the 2013 audit and financial report of activities in Nigeria’s oil and gas industry which was conducted by NEITI have shown that Nigeria made $58.07 billion from her hydrocarbons industry in that year. The report also showed that the country lost $5.966 billion and N20.4 billion in the sector from the operation of Offshore Processing Agreements by the NNPC; crude oil swap and theft. The NEITI report
................   read more

23 May

Daily Watch – NLC calls off strike, Naira to remain at 197/$

  • The NLC has suspended its nationwide strike called to protest the government’s decision to increase pump price of petrol and hike in electricity tariffs. NLC president, Ayuba Wabba, said the union resolved to suspend the strike with immediate effect. He spoke at the end of an emergency meeting of the union’s National Executive in Abuja, called to review the impact of the strike. The General Secretary, Peter Ozo-Eson, said after due consultation with its constituents
................   read more

20 May

The week ahead – Nigeria is heading to recession

Nigeria’s GDP fell by 0.36% in the first quarter of 2016 from Q4, 2015 levels according to data released by the National Bureau of Statistics. 2015 was a largely disappointing year for the Nigerian economy with the GDP numbers slowing in every quarter but Q3. Now as the GDP growth numbers have been positive all through, economists largely restrained themselves from declaring that the economy receded in Q2, 2015 after a second consecutive quarter of decline. Now with................   read more

20 May

Daily Watch – Bayelsa civil servants strike over salaries, NCAA reads riot act to airlines

  • Civil servants in Bayelsa State have embarked on an indefinite strike over months of salary arrears owed by the state government. The strike started following the end of a 21-day ultimatum given by unions to the Bayelsa State Government to pay all outstanding salaries and allowances. The NLC and TUC in Bayelsa had on Thursday, April 28, warned that at the end of the ultimatum, they would take an action against the government if it failed to comply with their
................   read more