19 Jul

Daily Watch – NDA hits Shell again, Bank profits to be hit by slow economy

  • The militant group, the Niger Delta Avengers, has again attacked a crude oil pipeline belonging to Shell, this time in Batan, Warri South West Council Area of Delta State. The militants blew up the pipeline just after midnight on Monday. The new attack happened around Camp Three, few kilometres away from where the militants had attacked oil installations early this month.It took soldiers over five hours to locate the spot of the incident and confirm the attack.
  • Labour trouble continues in Bayelsa as a large number of sacked employees of the Southern Ijaw LGA have protested their sacking by the council’s Caretaker Committee Chairman, Joshua Macaiver. The protesting workers were declared “ghost workers” and sacked by Macaiver. They only became aware that their names were removed from the payroll when employees of the council who were owed over eight months’ salaries were paid the January salary last week. The affected workers were said to have been employed in 2008 and had received salaries even throughout the first tenure of Governor Seriake Dickson until recently when Macaiver, an ex-militant leader, terminated their appointments.
  • The Punch is reporting that an increasing number of bad loans due to the slow growth in the economy will drag a good number of banks to record low profits when their financial results for Q2 are released. Thirteen, out of the fifteen banks whose shares are quoted on the Stock Exchange may post a combined decline of 15 percent in their Q2 financial reports. In Q1, thirteen banks, Access, GTB, Zenith, UBA, Diamond, Ecobank, Fidelity, FCMB, First Bank, Union Bank and Sterling Bank, posted PBT of ₦135.36 billion, compared to ₦148 billion in the corresponding period of last year. Banks are expected to start releasing their Q2 financial results at the Stock Exchange this week. Some, however, may delay theirs.