28 Apr

The week ahead – Nothing is changing

The CBN Governor, Mr Godwin Emefiele, after a closed-door meeting with Senate President Bukola Saraki and legislative leaders, expressed optimism on Tuesday that the economic recession would be over by the end of June or the third quarter of this year, based on what he described as emerging positive economic indicators. According to Emefiele, these included the downward trend of the value of the naira in the parallel market against the dollar; a reduction in inflation................   read more

28 Apr

Daily Watch – Sterling denies mass sack, PH DisCo explains blackouts

The Nigeria Extractive Industries Transparency Initiative on Thursday said it has commenced the process for a comprehensive independent audit of the oil and gas sector. It said the audit was being conducted in line with the principles and standards of the global Extractive Industries Transparency Initiative and would cover 2015 and 2016. The Executive Secretary, NEITI, Waziri Adio, disclosed this at a workshop in Lagos for major oil companies and relevant government agencies, which are expected to participate in the exercise. Adio explained that the workshop was designed to acquaint participants with the structure and content of the template, the kind of questions that NEITI would ask and the answers expected to be provided by the covered entities. The Nigerian Communications Commission has given service providers an ultimatum to quit the use of the 5.4GHz band spanning the 5.470 to 5.725 GHz frequency range within 14 days. In a statement on Thursday, the Executive Vice Chairman, Umar Danbatta, said the frequency was not free but licensed in Nigeria. This, he said, meant that no operator providing any service should jump on to the frequency without obtaining a license, warning of significant retribution if the directive was not complied with. “All concerned operators/companies or any person(s) using this band should note that it is a criminal offence pursuant to the section 122 of the Nigerian Communications Act, 2003 to operate on any frequency not duly assigned by the commission. The consequences of such an act may lead to imprisonment, sanction and forfeiture of equipment used in operating the illegal services,” the statement read. The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), have concluded plans to carry out about ₦60 billion worth projects across the country in 2017. It also disclosed that it facilitated a total of ₦64.4 billion credit risks project in the country between 2012 and 2016, in line with its mandate to provide renewable energy for agriculture, and the adoption of Climate Smart Agriculture approaches. NIRSAL is wholly owned by the CBN, which was incorporated in 2013, as a public-private initiative designed to appropriately define, price and share agribusiness related credit risks. Its core mandate is to de-risk investments and debt finance along the entire agricultural commodity value chain in Nigeria as well as provide technical assistance to the value chain actors and incentivise financial investments in the sector. Sterling Bank has refuted reports claiming it had sacked 650 staffers. The lender explained that it only returned the affected workers to service providers that had earlier assigned them to work with the bank. Although the bank said it had initially refrained from issuing a statement to counter the mischievous claim, “the spread of the falsehood by online reporters has compelled us to come up with this statement to put the record straight. Specifically, the 650 staff being reported are not staff of Sterling Bank. They were assigned to the bank by our service providers and as contained in the Service Level Agreements (SLA), they can be returned to the service providers for reassignment to any other institution by the service providers as they deem fit.” The lender said the number of staff from other banks willing to join it remains high. The Port Harcourt Electricity Distribution Company has blamed rolling electricity blackouts in four Nigerian states – Akwa Ibom, Bayelsa, Cross River and Rivers on industrial action by its workers. John Onyi, PHED’s spoeksman, said that the blackouts were a result of a forceful shutdown of the company’s offices and facilities by protesting workers. “PHED wishes to inform her esteemed customers that blackouts currently being experienced in most parts of her coverage area affected Akwa Ibom, Bayelsa, Cross Rivers and Rivers states. The blackout is as a result of organised labour`s action that barricaded and shut down PHED offices and Injection Substations. The shutdown has made it impossible for power to be wheeled out to all our customers and exposed our prepaid customers to difficulties in vending (payment). However, we are very hopeful that the contentious issues raised by the labour leaders would be resolved soonest,” Onyi said.
27 Apr

Daily Watch – Mining catches the derivation bug, Akwa Ibom takes tax fight to the courts

  • The Ministry of Mines and Steel Development said it had secured approval for the payment of 13 percent derivation from mining revenue to all 36 states of the federation. The ministry?s permanent secretary, Abass Mohammed, said the approval was part of efforts to improve the states’ participation in the mining sector. Mohammed said the ministry was collaborating with state governors to revive the sector after 45 years of decline in order to support the
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26 Apr

Daily Watch – Bonga oilfield reopens, Lagos pays some creditors off

  • Nigeria?s distributable government revenues rose to ₦467.81 billion ($1.53 billion) in March from ₦429 billion naira in February due to higher royalties from oil production. Distributable revenue is government income that is shared at various levels of the state including the FG, state governments and local government councils. The revenues were boosted by ?a noteworthy increase in revenue from oil royalty,? said a statement. However, the
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25 Apr

Daily Watch – FG moves to end illegal oil mining, Diamond profit tumbles

  • The FG has announced that it has started discussions with illegal refiners of crude oil in order to have them work as duly recognised modular refinery operators. It also stated that it would ensure that militancy in the Niger Delta ended by the end of this year, adding that it would sustain its engagements with stakeholders in the region in that respect. The Minister of State for Petroleum Resources, Ibe Kachikwu, said that the FG working out how to involve
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24 Apr

Daily Watch – Nigeria gets housing index, More airport makeovers coming

  • The FG is to float a $300 million Diaspora Bond as part of measures to galvanise the buy-in of foreign-based Nigerians into the ERGP. The Special Adviser to the President on Economic Matters, Adeyemi Dipeolu, said the bond was conceptualised to make Nigerians resident outside the country contribute to the country’s growth and recovery. The National Assembly has already approved the Diaspora Bond. Finance minister, Kemi Adeosun, had in January declared that
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21 Apr

The week ahead – Groping for light

On April 13, President Muhammadu Buhari appointed 23 new executives into a bevy of federal government agencies, including the National Agency for the Prohibition of Traffic in Persons, the National Park Service and the Federal Mortgage Bank of Nigeria. Much of the spotlight was however reserved for the significant shake-up at the National Pension Commission. Here, six Executive Board members, including its respected Director-General, Dr. Chinelo Anohu-Amazu; the Chairman................   read more

21 Apr

Daily Watch – FG to negotiate CFTA, NLNG posts lowest revenue since 2009

  • While Nigeria’s total current debt is relatively low compared to GDP, the interest rate payment is not sustainable with current revenue flows, the World Bank has said. Senior Economist at World Bank office in Nigeria, Yue Man Lee, said this in Abuja on Wednesday on the sidelines of the release of the 15th edition of Africa’s Pulse, an analysis of issues shaping the continent’s economic future. For interest payments to be sustainable, according to Lee, the
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20 Apr

Infographs – EFCC’s recoveries

The data contained in the infographs paint a picture of monies recovered by the EFCC in the War on Corruption since 2015. This data, accurate as of 19 April 2017, was compiled from public sources, mainly the EFCC’s website, and newspaper reports. All data which had a single source was eliminated.

Download details of recoveries (2 pages)

20 Apr

Daily Watch – Electricity players to get capitalisation targets, Dangote quits noodles

  • NERC is set to release a minimum recapitalisation level required to be met by core investors in the power sector. It has identified capital adequacy as a major issue in the power sector, pointing out that the successor companies of PHCN were handed over to the core investors without any liability. As a result, after three years of operating the successor companies, there have been colossal losses, necessitating the need to set minimum capital adequacy requirement
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