05 Jun

Daily Watch – BDCs & banks on same FX plane, Job creation ‘not growing’

  • The NCC says all telcos in the country must desist from automatically renewing data packages without a subscriber’s consent and slapped a ₦5 million fine for non-adherence. Executive Vice Chairman Umar Danbatta made this known at the first edition of the NCC Consumer Conversations in Karu, Nasarawa, citing a May 21 directive to the companies where it highlighted the “unacceptable level” of complaints received by the commission. “We have also directed that no mobile service providers should impose their services to consumers. It is expected that they should obtain their consent,” the statement said.
  • Nigerian crude cargoes found little buying interest on Monday, as differentials remained too high relative to the amount of oil available, Reuters reports. Just a handful of cargoes of June Nigerian cargoes were still up for sale, but the July programme was proving slow to move, trading sources said. Differentials for major grades such as Qua Iboe still looked like they should head lower, traders said. Force majeure on exports of Bonny Light crude remains in place, a spokesman for Shell said on Monday.
  • A new PwC report says the job creation has not been growing despite the growth experienced by the economy. The report, titled ‘Structural transformation and jobless growth in Nigeria’ said “the latest available data puts the unemployment rate at 18.8 percent, and underemployment at 21.2 percent, the highest since the National Bureau of Statistics adopted a new methodology for measuring unemployment in 2010,” the report read. “Between 2010 and 2017, average job growth was 1.6 percent, weaker than labour force growth of 3.9 percent. To reduce the unemployment rate, we estimate that employment growth of at least 4-5 percent is required. According to the report, a one percent increase in manufacturing growth translates to a 0.3 percent increase in employment.
  • The CBN has approved that BDC operators and commercial banks should get forex at the same rate. Spokesman Isaac Okorafor in a statement on Monday that the decision was aimed at giving BDCs a level playing field to enable them to compete favourably with other authorised foreign exchange dealers. Under the new directive, banks and BDCs alike will buy the United States dollar at ₦357 per dollar to sell ₦360. He said this would provide a positive margin of ₦3 per dollar sold to BDC operators by the apex bank. For DMBs, the ₦357 rate is the rate at which they buy forex for PTA and BTA transactions and is different from the interbank rate.
  • Trinidad and Tobago’s sole liquefied natural gas production company, Atlantic LNG, has appointed Nigeria’s Philip Mshelbila as its new CEO. He succeeds Nigel Darlow who has been the CEO since 2011 and during his tenure, has strengthened the company’s position as a leading global LNG business. Atlantic LNG operates four liquefaction units trains with a total capacity of 14.8 million metric tonnes per year. Mshelbila holds degrees from the Ahmadu Bello University, Zaria, the University of Aberdeen, Scotland and the IESE Business School of the University of Navarra, Spain and had stints at the NNPC and Shell.