- Nigeria’s economic challenges have been highlighted by new data which show that earnings from exporters witnessed a 43.2 percent decline of $438.82m in the second quarter from $1.02 billion in Q1 to $576.97 million, a loss of ₦133.8 billion at current exchange rates. The reduced earnings from the non-oil products, according to experts, is a reflection of the significant drop in economic activities occasioned by the fall in the productive capacity of the country’s industries. The NBS released new figures showing the economy shrank at a worse than expected -0.2 percent year-on-year.
- NACCIMA has criticised a new CBN directive permitting 11 additional International Money Transfer Operators (IMTOs) to operate in the country, saying the policy will put the market’s determination of forex prices in a few hands, thus creating an enabling environment for sharp practices within the parallel market. According to its president, Bassey Edem, the “beneficiaries of foreign currency proceeds [should] be allowed to determine when they sell their proceeds and at what rate. This will create a situation of multiple supplier/sellers to meet the existing demand in the parallel market and relieve the pressure on the inter-bank window.”
- According to the Punch, the total amount of money invested by PFA operators in infrastructure has risen to ₦1.7 billion. While total pension assets under management as at July 2016 rose to ₦5.82 trillion, a higher percentage, ₦3.98 trillion or 68.42 percent were invested in government securities, a new report says. Under NPC guidelines, as much as 15 percent of the total value of the pension fund assets under management could be invested in infrastructure through infrastructure bonds; and a further five percent in infrastructure funds, making 20 percent of the total value of the pension assets.
- About six months after electricity generation dropped below 3,000MW, the output from Nigeria’s power plants is still 1,552MW below its February peak. Power generation stood at 3,523.10MW as at 0600 hours on Friday, September 2, up from 3,026.3MW on August 29, data from the System Operator showed. The TCN had announced on February 2, that the nation had achieved peak electricity generation of 5,074.70MW. The power grid recorded 21 collapses in the first half of the year – 16 total and five partial collapses; the latest system collapse (partial) occurred on July 10, according to data from the National Control Centre. More than half of Nigeria’s power plants are currently facing a gas shortage, with unutilised electricity generation capacity due to gas constraints put at 3,988.3MW as at August 29. The country generates most of its electricity from gas-fired power plants, while output from hydropower plants makes up about 30 percent of total generation.
- UBA CEO, Kennedy Uzoka, has that said the bank’s African subsidiaries now account for a quarter of its profit and total deposit base, which is largely made up of low-cost savings and current account deposits. Uzoka made this disclosure during an investor conference call on August 31 on the bank’s 2016 half year results. “I am particularly impressed by the performance of our business in Congo Brazzaville, where we doubled bottom-line, largely through transaction-based offerings,” he said. Uzoka noted that the firm’s African business, excluding Nigeria, contributed a quarter of profit during the period, and possessed a stronger outlook than its home country.
- The Lagos state government has paid 180 retirees from its civil service, local governments, the Universal Basic Education Board, teachers’ establishment and pension office and other parastatals pension entitlements worth ₦918.70 million. A statement from the state pension office said the latest batch of payments brought the number of retirees paid within the last year from August to 4,104, while total accrued pension rights paid by the government has reached ₦16.95 billion.