- Lagos, Oyo and Ogun states have emerged the highest users of diesel and petrol, the analysis of petroleum products consumption by BusinessDay Research and Intelligence Unit (BRIU) for the nine months ended September 2016 shows. The two products are used as proxies to measure the level of economic and industrial activity in Nigeria. Thus the high consumption of petrol and diesel in the three states reflects the high level of economic activity concentrated in the three states. BRIU analysis shows the three states at the end of the period collectively utilised 962 million litres of diesel and 3.92 billion litres of petrol, representing 57 percent and 31 percent of the total diesel and PMS consumed in Nigeria within the period. But compared with the same period in 2015, the 2016 consumption represented a drop from the 61 percent of diesel and 29 percent of PMS, which translated to 1.44 billion litres of diesel and 3.87 billion litres of PMS by the end of third quarter of 2015. In terms of the actual volume, the PMS and diesel consumption in the three states dropped 33 percent, which could be linked to the effect of the on-going difficulties the manufacturing sector is facing as they struggle to sustain their capacity due to a lack of access to foreign exchange. NBS Data shows that the manufacturing sector has experienced negative growth in the last three-quarters. A good chunk of Nigeria’s heavy manufacturing is concentrated in the Lagos, Ogun and Oyo production axis.
- The Managing Director of the Bank of Industry, Waheed Olagunju, on Monday, kicked against the Senate proposal to dissolve the BOI and establish a National Development Bank of Nigeria. This came despite the CBN and the finance ministry throwing their weight behind the plan. The trio spoke at the Senate during a public hearing on the National Development Bank of Nigeria (Establishment) Bill 2016. Olagunju said the dissolution of the 57-year-old institution would not augur well for the country’s financial sector. “[The] BOI is not opposed to the establishment of Development Financial Institutions (DFIs) in Nigeria. But the BOI is a brand that commands domestic and international confidence. It is not going to be in the best interest of the country for us to dissolve an institution that we have built over the years. It is not good to leave known for unknown,” he said. On her part, Finance minister Kemi Adeosun, represented by Christopher Gabriel, said the establishment of NDB was capable of transforming the country’s SMEs. Emefiele who was represented by the Deputy Governor in charge of Financial System Stability, Okwu Nnanna, supported Adeosun’s position, adding that, “We have no objection, in fact, the CBN will welcome it.”
- The FG has banned the importation of vehicles into the country through its land borders. Wale Adeniyi, Nigeria Customs Service spokesman, stated that “the prohibition order covers all new and used vehicles”. Adeniyi also said the ban was pursuant to a presidential directive restricting all vehicle imports to Nigeria’s sea ports only, adding that the order takes effect from January 1, 2017. “The restriction on the importation of vehicles follows that of rice; import of rice through land borders has been banned since April 2016. Importers of vehicles through the land borders are requested to utilise the grace period until December 31, 2016, to clear their vehicle imports landed in neighbouring ports,” Adeniyi said.
- SANY, a Chinese manufacturer of heavy industrial machines has said that it is currently looking for a local content investment partner to establish its equipment manufacturing and production centre in Nigeria. The company which specialises in the manufacturing of heavy industrial equipment that includes construction and mining equipment, port and oil drilling machinery as well as renewable wind-energy systems, says it is ready to invest at least 20 to $30 million to set up a new production centre in Nigeria. “We are looking for a local partner in Nigeria to proceed with this project. We have to invest at least 20 to $30 million to create about 800 initial job opportunities for Nigerians. Apart from job creation, we also want to bring the technological know-how in the building of heavy industrial equipment to Nigeria,” Lei Li, the company representative in charge of SANY North Africa business unit including West and East Africa regions said in an interview.
- The SEC is examining the books of the Lagos State government and inspecting project sites preparatory to granting approval for a ₦60 billion bond to be issued by the state government before the end of 2016. The ₦60 billion is part of the ₦500 billion bond programme to be issued in series by the Akinwunmi Ambode-led administration to continue to fund infrastructural development in Nigeria’s economic hub. Akinyemi Ashade, the state commissioner of finance, economic planning and budget said at the weekend that aside the ₦60 billion this month, the state would also be approaching the market for ₦100 billion in 2017. One of the immediate projects to be funded with proceeds from the bond will be the channelisation of the waterways aimed at expanding the scope of water transportation in the state and attracting new investors to that sub-sector.