26 Sep

Daily Watch – 23 states exceed borrowing limits, Saraki makes a PIB promise

  • The main subsidiary of the NNPC said on Monday it planned to increase production from fields in which it owns stakes to 300,000 barrels per day by 2018 from the current level of 180,000 bpd. The NPDC said the planned increase in so-called equity production was part of the NNPC’s “transformation.” NPDC, in a statement issued by its parent company, said production was expected to reach 400,000 bpd and 500,000 bpd by 2019 and 2020 respectively. NPDC, set up in 1988 to carry out oil and gas exploration, said it was involved in 29 concessions comprising of 22 oil mining leases and seven oil prospecting leases.
  • Senate President, Bukola Saraki has said the upper chamber of the National Assembly is working to ensure the completion of the passage of the Petroleum Industry Bill in the fourth quarter of this year. Saraki stated this in Lagos on Monday at the Nigeria Oil and Gas Industry Research and Development Fair and Conference 2017 organised by the Nigerian Content Development and Monitoring Board. The PIB, which has been in the works since 2008 when it was first introduced in the legislature, suffered setbacks in the 6th and 7th National Assembly. Saraki said the PIB was split into four parts – the Petroleum Industry Governance Bill, the Petroleum Industry Administration Bill, the Petroleum Industry Fiscal Bill and the Petroleum Host Community Bill – to fast-track its passage into law. The Senate, on May 25, 2015, passed the PIGB, which seeks to unbundle the NNPC and merge its subsidiaries into a single entity.
  • Contrary to Debt Management Office guidelines on subnational borrowing, 23 Nigerian states exceeded their borrowing limits in 2015, the Fiscal Responsibility Commission has said. In a report on the states and indebtedness, the FRC said Lagos, Kaduna, Cross River, Gombe, Ekiti, Edo, Ondo and Imo states had borrowed more than 50 percent of their annual statutory allocations by 2015. Other states in the same boat are Zamfara, Adamawa, Oyo, Abia, Ogun, Taraba, Kebbi, Enugu, Bauchi, Nasarawa, Kano, Benue, Kwara, Katsina and Sokoto. The FRC added that when total revenue (gross statutory allocation plus Internally Generated Revenue) was used as the yardstick for measuring the level of indebtedness of the states, a total of 20 states borrowed more than their total revenues in 2015.
  • The Nigerian Stock Exchange has announced an operating surplus of ₦27.5 million in its full-year 2016 financial statement released yesterday at the 56th Annual General Meeting (AGM) of its members in Lagos. During the AGM, the Financial Statements of the Exchange as at 31 December 2016 and the reports of National Council and Auditors were presented to the members as part of the Ordinary Business of the day. Speaking at the Annual General Meeting, the President of the National Council of the NSE, Aigboje Aig- Imoukhuede said that “despite the economic headwinds in 2016, the Group level of the NSE remained profitable with an operating surplus of ₦27.45 million. The Exchange generated revenues of ₦4.46 billion, down 31 percent from the previous year, reflecting bearish sentiments prevalent in the market in 2016.” Aig-Imoukhuede commended the Council and Management of the Exchange for their cost containment efforts and their diligent approach to budgeting which saw total expenses decline 12 percent year-on-year without affecting The Exchange’s high operating standards and service quality.