18 Jan

Daily Watch – Nigeria’s loan bid hits brick wall, Militants blow up pipeline

  • Nigeria’s efforts to secure funds from international lenders to help haul it out of recession have stalled because it has not submitted the required economic reform plans, a Reuters report quoting various sources has claimed. The government has told lenders that it would present its proposed reforms to make the economy more resilient and attractive to investment by the end of December, but this has not happened and as a result of the delay, which the government has not explained, the World Bank has not been able to consider a loan yet. The African Development Bank, meanwhile, is holding back the second tranche of a $1 billion loan for Nigeria, AfDB president Akinwumi Adesina told Reuters on the sidelines of the World Economic Forum in Davos, Switzerland.
  • The NNPC, has unveiled two dedicated vessels to help provide a permanent solution to the cooking gas supply logjam in the country. The joint venture company, West Africa Gas Limited, in partnership with Sahara Energy, was unveiling two liquefied petroleum gas vessels in Ulsan, South Korea to ensure uninterrupted supply of the commodity to the market. Ndu Ughamadu, an NNPC spokesman, described the vessels as “the game changer in the supply network of the gas subsector.” Ughamadu said the NNPC Group Managing Director, Maikanti Baru, who spoke at a pre-naming event in South Korea on Monday, expressed delight that the venture established in 2014 had started recording success within a short span.
  • An unidentified militant group in the Niger Delta has blown up a crude oil trunkline in Ughelli, Delta State, barely 24 hours after Vice President Yemi Osinbajo led a Federal Government delegation to the region. Osinbajo had on Monday held a meeting with traditional rulers in Delta State with the aim of finding a lasting peace in the region.
  • An analysis of the NBS’s Job Creation Report carried out by The Punch shows that in 2016, the power sector recorded the lowest number of jobs created out of all the priority sectors identified by the Buhari administration. The government had identified the diversification of the economy as one of the six major strategic intervention areas, highlighting reforms in the agriculture, power, manufacturing, information and communications technology and tourism sectors as gateway to achieving this. In Q4 2015, the power sector generated only one job, which rose marginally to four in Q1 2016. However, a deficit of 80 was recorded across Q2 and Q3 2016. In a recent interview, the CEO of Egbin Power, Dallas Peavey, said that the operators had lost huge sums of money and were weighed down by the debts owed by the government.
  • Nnewi based battery manufacturing company, the Ibeto Group, is claiming that dumping of cheap Chinese batteries have cost the company about 2000 jobs lost in the last three years. Cletus Ibeto, the chairman of the company, said his company could no longer sell its products at competitive prices, resulting in nearly 2,000 job losses and the closure of its Friction Parts Plant.