05 May

Daily Watch – Village sues ENI, 4 billion litres of petrol imported in Q1

  • A recent rise in oil revenues has helped the CBN to defend the naira and stabilise the parallel market foreign exchange rate, Governor Godwin Emefiele said on Thursday. Nigeria has suffered from dollar shortages as a slump in oil revenues has hammered the currency and dried up supplies of the greenback on official channels, forcing traders to pay a premium on the parallel market. “The market is stabilising at the level that it is right now and I am saying the parallel market (is) currently stabilising at between ₦380 and ₦385 (a dollar),” Emefiele said after meeting President Muhammadu Buhari. The naira was quoted on Thursday at an investor trading window at ₦382.14 per dollar, data from market regulator FMDQ OTC Securities Exchange showed. The official market rate was ₦305.20 and the black market rate ₦391. “Revenues are looking good, the state of the economy is good and I believe that we are going to pull out of the problem in due course,” Emefiele said, talking about the foreign exchange rate.
  • The NBS says Nigeria imported 4.05 billion litres of petrol valued at ₦566.96 billion in the first quarter of 2017, between January and March. The NBS gave the figure in “Petroleum Products Import Statistics for Q1 2017″ released by the bureau on Thursday in Abuja. The bureau’s data showed that 4.05 billion litres of petrol (PMS); 1.31 billion litres of diesel (AGO); and 41.06 million litres of kerosene (HHK), were imported in the quarter. It stated that the products imported valued at ₦566.96 billion, ₦187.56 billion and ₦5.92 billion for petrol, diesel, and kerosene respectively. “The month of March 2017 recorded the highest volumes of PMS and AGO imported into the country at 1.63 billion and 504.59 million litres valued at ₦218.88 million and ₦70.28 million respectively. The highest monthly volume of HHK was imported in the January 2017 with 27.82 million litres valued at ₦4.07 billion,” the report added. According to the NBS, state-wide distribution of truck-out volume for the quarter showed that 4.81 billion litres of petrol were distributed in the quarter nationwide while 1.31 billion litres of diesel and 236.43 million litres of kerosene were also distributed nationwide.
  • A Nigerian village has filed a lawsuit in Milan against Italian oil company Eni demanding compensation for damage caused by an oil pipeline explosion in 2010, an Italian lawyer representing the village said on Thursday. The village of Ikebiri in the Niger Delta is asking Eni for €2 million euros (₦830 million) in damages along with a commitment to clean up the area covering more than 43 acres (17 hectares), Luca Saltalamacchia told a news conference. “The explosion that happened near a river caused an environmental disaster that polluted water and land,” Saltalamacchia said. Mining and energy firms around the world have battled a spate of cases brought in international courts against their subsidiaries in other countries. Anglo-Dutch oil company Royal Dutch Shell successfully fought efforts by one Nigerian community to sue the company in British courts, but it settled another case brought in London by a Nigerian community in 2015.
  • Deposit money banks say they will deduct stamp duty for transactions carried out in December 2016 and January 2017 in May 2017. According to banks, the move is as a result of a circular from the CBN. “Following CBN directive, please note that we will be retrieving stamp duty on all your Dec 2016 and Jan 2017 transactions,” a commercial bank said in a text message to it customers. Isaac Okorafor, the CBN spokesman, said the directive was as a result of a court order. “It is in compliance with the order of a court,” Okorafor said.
  • SEC has dissolved the board of Ikeja Hotels and appointed a new one to act on the interim. The capital market regulator said it had to take the decision it described as “proactive measure,” due to an unresolved internal crisis involving some majority shareholders of the company. The Commission said the action became necessary to pre-empt the warring factions in the crisis take certain actions that would be detrimental to the continued growth of the company. “To forestall chaos in the organisation, the Commission and other distinguished personalities had previously held various meetings with the existing Board towards resolving the crises. But, the company continued to be plagued with unhealthy Corporate Governance practices, including disregard to the Code of Corporate Governance for public companies,” the commission said in a statement. The statement said as a public company, it was paramount that its activities were conducted within the confines of existing corporate governance regulations in the Nigerian capital market, to ensure the protection of minority shareholders and other investors.