10 Jun

Daily Watch – Banks agree to halt the job cuts, PZ takes a major hit on Nigeria FX woes

  • The Bankers Committee, on behalf of Deposit Money Banks, have agreed to halt further job cuts in the industry. The decision was announced at the end of the 327th Bankers Committee meeting in Abuja. Tokunbo Martins, the CBN’s Director of Banking Supervision; Bola Adesola, Managing Director of Standard Chartered Bank; Philip Odozua, retiring Managing Director of UBA; Emeka Emuwa, Managing Director of Union Bank and Isaac Okoroafor, Acting Director of Communications of the CBN, made the announcement following the meeting.
  • Anambra Project Coordinator of FADAMA III, Chuks Egbueh, has announced that the project will embark on the construction of 44 kilometres of access roads across the state. This will enable farmers to transport their produce to urban areas. Egbueh also said that the project had been providing seedlings, pest control, and advisory services and training agronomy to farmers in the state. Farmers have been informed of ready markets for their produce which include perishable yields.
  • The recent uptick in vandalism has not only negatively impacted on oil production but reduced Nigeria’s domestic gas production by 50 percent which has in turn constrained gas supply to power plants in the country. Power supply has consequently dropped since March, plunging lower in May this year. According to the NNPC’s financial and operations report for April, Nigeria has lost over 1,500MW of power to the damage of the Farcados 48-inch export pipeline which is the country’s major artery that accounts for 40-50 percent of gas production. The 48-inch export line operated by Shell, NNPC and other JV partners was vandalised in February 2016 crippling export of crude oil from the terminal. Shell, last week, confirmed that the giant underwater Forcados 48-inch pipeline had been hit again and was leaking.
  • Consumer goods group PZ Cussons, which generates a quarter of its profits in Nigeria, has warned shareholders it will take a one-off hit of £17m related to the foreign exchange shortage. The company has also warned that it expects conditions to remain “challenging” in Nigeria with “a range of potential outcomes for the new financial year dependent on the translational and transactional impacts of any movement in the naira exchange rate.” The group said it is focusing on securing materials for its key products, while it is trying to keep pricing competitive in an economy that is suffering from soaring inflation. Inflation in Nigeria jumped to 13.7 percent in April – its highest level since June 2010.