09 May

Daily Watch – NAFDAC wields hammer on Big Pharma, Power supply plummets

  • Nigeria’s electricity generation capacity dropped from a 5,222.3MW peak set earlier this year to 2,329.9 MW on May 6. This country lost about 3,710.8MW due to gas, line and frequency constraints, or the equivalent of ₦1.870 billion according to the Nigerian Electricity Supply Industry. On the same day, the country’s national peak demand was 19,100MW, with an installed capacity of 11,165.40MW, but only 7,139.60MW was available due to inadequate gas and transmission issues among others. Omotosho NIPP Gas Turbine (GT 1 and 4); Alaoji NIPP GT1, 2, and 4; Geregu NIPP GT21 -23; Olorunsogo NIPP GT 3; Geregu Gas GT 12 and 13, and Odukpani NIPP GT4 and 5 could not generate electricity due to gas constraints. Furthermore, Trans Amadi GT1 and 2, Ibom GT3 and Olorunsogo NIPP GT1 were out due to line constraints. A total of 14 power plants generation plants were handicapped due to frequency management occasioned by the load demand of Discos.
  • The FG on Monday opened its May savings bonds’ offer, the DMO said. According to the offering circular on the DMO’s website, it offered the two-year bonds at 9.48 percent and the three-year bonds at 10.48 percent. The two-year bonds would be due in May 2020, while the three-year bonds would mature in May 2021. The debt office, however, did not state how much was offered, but the maximum subscription was ₦50 million at ₦1,000 per unit, subject to minimum subscription of ₦5,000 in multiples of ₦1,000. According to the DMO, the bonds are backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bondholders.
  • Sub-Saharan African nations are at growing risk of debt distress because of heavy borrowing and gaping deficits, despite an overall uptick in economic growth, the IMF warned on Tuesday. The sober assessment comes as African countries continue to tap international debt markets and issue record levels of debt in foreign currencies, spurred on by insatiable investor demand for yields. In its economic outlook for the region, the Fund projected the rate of economic expansion would rise to 3.4 percent this year, up from 2.8 percent in 2017, boosted by global growth and higher commodity prices. Slower growth in South Africa and Nigeria – the continent’s two largest economies – weighed on the region-wide average, but the IMF expects growth to pick up in around two-thirds of African nations. However, under current policies, that rate is expected to plateau below 4 percent over the medium term.
  • Nigeria’s food and drugs agency has shut down three companies manufacturing cough syrup containing highly-addictive codeine. Mojisola Adeyeye, NAFDAC director-general, said in a statement that the decision follows an investigation by her agency in which the companies were shown to have refused to abide by regulations on the distribution of certain medications and “insufficient evidence gathered and apparent resistance to provide needed documents”. She said Peace Standard Pharmaceutical, Bioraj Pharmaceutical and Emzor Pharmaceuticals would be shut. However, they could reopen at a later date – although this “will depend on the level of cooperation that is shown during the comprehensive investigation”. Nigeria had announced a ban on the production and import of cough syrup containing codeine after a BBC investigation into its role in an addiction epidemic.
  • Zinox has finalised arrangements to expand its hardware assembly and production capacity with the acquisition of a 129,166.925 square feet warehouse in Lagos. The company said it is also considering the deployment of robotics in handling the certification processes in the new assembly plant which will be located in Ogba, Ikeja. At the new facility, the IT firm will assemble the products and devices of other multinational OEMs which it recently signed deals with. Gideon Ayogu, Head of Corporate Communications said the new assembly plant will help the company expand its capacity to meet the changing demands of a dynamic market and employ more Nigerians. The company expects to open up the new assembly plant in Q3 2018.