Economic and Business News
For the Week ending, Friday, 21st July, 2017
CBN to mop-up N238bn as NBS releases June inflation data
THE Central Bank of Nigeria (CBN) will this week continue its tight monetary policy by issuing treasury bills to mop-up N238 billion. Meanwhile the National Bureau of Statistics (NBS) will also this week release the inflation data for June, which is expected to sustain the downward trend for the fourth consecutive months.
Financial Vanguard findings revealed that the CBN, in a bid to forestall build-up of excess liquidity in the interbank money market, which could lead to upward pressure on inflation and exchange rate, will issue treasury bills worth N238.7 billion. This comprises 91-day bills worth N12.295 billion, 364-day bills worth N129 billion and 353-day bills worth N97.438 billion. This was designed to cancel out the impact of inflow of N204.96 billion coming into the system this week via payment of matured treasury bills. The mature treasury bills comprise91-day bills worth N36.786 billion,182-day bills worth N39.175 billion and 364-day bills worth N129 billion.
Vanguard. Monday, 17 July 2017
Nigerian inflation rate declines to 13-month low
Nigeria's inflation rate fell for a fifth consecutive in June even as food-price growth surged. Inflation eased to 16.1 percent from 16.3 percent in May, the Abuja-based National Bureau of Statistics said in an emailed report Monday. The median of 15 economists' estimates compiled by Bloomberg was for 16 percent. Prices rose 1.6 percent in the month.
Inflation has been above the upper end of the central bank's target band of 6 percent to 9 percent for two years. Governor Godwin Emefiele kept the main policy rate at a record high of 14 percent since last July to fight price growth and support the naira even as the economy has contracted for five consecutive quarters. It will next review the rate on July 25. Emefiele said last month tight monetary policy will continue.
The Guardian. Monday, 17 July 2017
Nigeria sets top 16 largest economies target
The Acting President, Prof. Yemi Osinbajo, has said that 'Nigeria is fast moving toward becoming one of the 16 largest economies in the world. Osinbajo made the statement on Tuesday at the palace of the Emir of Gusau, Alhaji Ibrahim Bello, as part of his one-day visit to Zamfara.
He said the target could be achieved through unity and hard work by Nigerians. Osinbajo said the unity of Nigerians was paramount to the economic growth of the country. He said: ''Our diversity as a people united is also our potential to transform our large deposits of mineral resources and use same for national development.'
Punch. Tuesday, 18 July 2017
BoI, Ebonyi seal N4b pact to fast-track industrialisation
To fast-track jobs and wealth creation through entrepreneurship, the Bank of Industry (BoI) and the Ebonyi state government have signed a N4billion memorandum of understanding (MoU), to promote agriculture and the setting up of industries in the state.
The ceremony, which took place at the Ebonyi state government house in Abakaliki on Monday, is set to usher in economic boom for the state, which has targeted to set up at least one industry in each of its 150 communities under the dispensation of the N4billion Fund. Governor Dave Umahi of Ebonyi state commended BoI for supporting the state's economic growth initiative with 50 per cent of the Fund, stressing that the bank was indeed not out to make money but to foster development.
The Guardian. Wenesday, 19 July 2017
FG commits N3bn to OAU agric project
The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, has said that the Central Bank of Nigeria will contribute N3bn to the proposed agricultural intervention project at the Obafemi Awolowo University, Ile-Ife, Osun State. Ogbeh, who said this at a public forum in OAU, urged the university community to contribute their quota to government's initiative to diversify the nation's economy. The minister, who lamented the untold hardship in the country, pleaded with Nigerians to be patient with the President Muhammadu Buhari-led administration in its efforts to turn around the fortunes of the country.
Ogbeh charged Nigerian youths to embrace agriculture as a way out of the economic recession facing the country and urged educational institutions in the country to partner the government in its effort to reposition agriculture in the country.
Punch. Wednesday, 19 July 2017
CBN's forex market intervention improving business climate –Adenuga
The continued intervention of the Central Bank of Nigeria in the nation's foreign exchange market is gradually enhancing the country's business climate, the Managing Director, Premier Standard Industrial Limited, Mr. Gbolahan Adenuga, has said.
Adenuga noted that the greatest challenge that faced the business environment last year and the earlier part of this year was forex scarcity, adding that the situation almost crippled some firms. He observed that the creation of the Investors and Exporters FX Window by the CBN had enhanced the inflow of forex into the country. This, he said, had improved the country's business climate. The Premier Standard MD, however, urged the central bank to do more, describing the injection of dollars into the market as a good development.
Punch. Wednesday, 19 July 2017
Naira depreciates to N363.57/$ at NAFEX
The Naira yesterday depreciated to N363.57 per dollar at the Nigeria Autonomous Foreign Exchange Market (NAFEX) window. Data from the Financial Market Dealers Quote (FMDQ), showed that the indicative exchange rate for the NAFEX window rose from N362.21 per dollar on Monday to close at N363.57 per dollar, indicating N1.63 depreciation for the naira in contrast to the 50 kobo appreciation recorded on Monday.
The naira however remained stable at N367 per dollar in the parallel market yesterday, while the Central Bank of Nigeria (CBN) sold $20,000 to each of the 3,145 bureaux de change (BDCs) across the country. This complements the $195 million injected by the apex bank into the interbank market on Monday.
Vanguard. Wednesday, 19 July 2017
Katsina launches N2b tractor scheme for farmers
With the acquisition of 225 Mahindra 60hp two-wheel tractors, the Katrina State Government, on Thursday, launched its N2 billion agriculture technology scheme tagged "Farm to Folk Prosperity Initiative," for farmers in the area. Launching the programme on behalf of Governor Aminu Bello Masari, the deputy governor, Mannir Yakubu, explained that the agricultural scheme was conceived in 2014 as part of the five key sectors that need government attention. He listed the other sectors as education, health, water supply and security, describing them as the catalyst needed for sustainable economic development, social reforms, peace and security.
The agriculture technology scheme is a partnership programme in collaboration with the government, Springfield Agro Limited, Mahindra of India, the manufacturers of the tractors, Tractor Owners and Operators of Nigeria, Access Bank Plc and the Nigeria Incentive-based Risk Sharing System for agricultural lending.
The Sun. Thursday, 20 July 2017
FG sets up committee for implementation of national action plan on mercury use
ABUJA - FEDERAL Government has inaugurated a National Steering Group (NSG) for the execution of the National Action Plan on Mercury use in the Nigerian Artisana and Small-scale Gold Mining (ASGM) sector. This signals a renewed effort by the government to reduce the effect of mercury on human health and the environment in line with the Minamata Convention to which Nigeria is a signatory.Inaugurating the committee, in Abuja, the Minister of State for Environment, Alhaji Ibrahim Jibril said that human activities in recent times have largely increased the concentration of mercury in 'our environment'.
Vanguard. Thursday, 20 July 2017
Diesel price crashes by 42 per cent
The Nigerian National petroleum Corporation (NNPC) said that diesel price nationwide crashed by 42 per cent due to strategic intervention by the Corporation to sustain supply of the product. The Corporation in its May report released in Abuja, on Thursday said the move helped to stop unpleasant experience witnessed in the first quarter of 2017.
It said that the retail price of the product in the first quarter rose to N300 per litre. The monthly report, the 22nd edition, like the previous ones, is designed to promote and sustain effective communication with stakeholders.
Vanguard. Friday, 21 July 2017
MAN seeks expansion of CBN's Anchor Borrowers Programme
MANUFACTURERS Association of Nigeria, MAN, has proposed the expansion of the scope of Central Bank of Nigeria's Anchor Borrowers Programme (ABP) to further boost production of key commodities and stabilize inputs supply to agro processors. Recall that the ABP scheme was introduced by CBN almost two years ago to boost domestic food production and save the country's capital outflow as a result of about N1 trillion annual food import bill.
MAN President, Dr. Frank Jacobs, told Vanguard in a chat that the initiative was laudable going by the impact it has had so far on the agricultural sector of the economy. He stated: "We recommend that the scheme be expanded to include medium scale as well as large scale integrated processors to act as anchor companies, so as to increase private sector involvement in the scheme, in order to boost production of key commodities, stabilize inputs supply to agro processors and address the country's negative balance of payments on food."
Vanguard. Friday, 21 July 2017
Forex inflow in sharp rise, as CBN records $14.5bn in 5 months
The Central Bank of Nigeria (CBN) recorded foreign exchange inflow of $14.53 billion from January to May this year. This represents 121 per cent increase when compared with $6.57 billion recorded from January to May in 2016.
Vanguard analysis of the monthly economic reports of the apex bank revealed that foreign exchange outflow through the CBN, however, increased marginally by 5.8 per cent to $9.09 billion within same period this year, compared to the $8.59 billion recorded as outflow same period last year. Consequently, the apex bank recorded net foreign exchange inflow of $5.4 billion in the first five months of this year, up by 367 per cent per cent from net outflow of $2.02 billion recorded in the corresponding period of 2016.
Vanguard. Friday, 21 July 2017
Other Economic and Business Indicators
|Monetary Policy Rate||14%
|Inter-Bank Call Rate||64.58%
|Prime Lending Rate||17.44%
|Maximum Lending Rate||30.31%
|External Reserve||USD 30,333,811,210
(6 July, 2017)
|Exchange Rate (CBN)
6 July 2017
|Exchange Rate (Parallel Market)
5 May 2017
|Treasury Bill Rate (91 Days)||13.5%
(21 June, 2017)
|Currency in Circulation (Million Naira)||1,975,812.32
|External Debt: FGN + States (USD million)||13,807.59
(as at March 31, 2017)
|Local Debt: FGN only (NGN million)||11,971,336.53
(as at March 31, 2017)
|Bank Credit to to Private Sector (NGN million)||21,942,872.06
|Demand Deposits at Banks (NGN million)||8,153,838.90
|Nigeria's Merchandise Trade||5,7286.6 billion (Quarter 4, 2016)|
|Crude Oil||$45.11 (OPEC Daily Basket, 7 July, 2017)|
Source: CBN, NBS and DMO
Compiled by: Research Department, NACCIMA
10 July, 2017