Economic and Business News
For the week ending, Friday 12th August 2016
Nigeria, others record 26% job cut in oil production
DATA obtained from the United States, US, Energy Information Administration, EIA, has put the continued decline of employment in the oil and natural gas production across the world at 26 percent between 2014 and 2016.
The report, which captured between October 2014 and May 2016, stated that employment in oil and gas production reached a hight of 538,000 jobs in October 2014, but since then had declined by 26 percent, a loss of more than 142,000 jobs.
It will be recalled that in Nigeria, there had been alarming rate of job cuts in the petroleum sector over the downturn in crude oil price at the International market and the attacks on oil facilities in the Niger Delta region.
Vanguard. 8 August 2016
Nigeria needs to train 7.7m people in 5 years to operate infrastructure
Dr Kabir Usman, Director-General, Centre for Management Development, says Nigeria needs to train 7.7 million people in the next five years to operate required infrastructure in the country.
Usman said this in a document “ Human Capital: A Prerequisite for National Integrated Infrastructure Master Plan (NIIMP)'', obtained on Monday in Abuja.
The NIIMP focused on developing the transportation, energy, Information Communication Technology (ICT), agriculture, water, mining, housing, social infrastructure, vital registration and security sectors.
Vanguard. 9 August 2016
Conduct 'energy audit' of electricity consumers, Fashola tells DISCOs
IMinister of Power, Housing and Works, Babatunde Raji Fashola, has tasked electricity distribution companies (DISCOs) to conduct "energy audit" of consumers, before transmission and distribution of electricity could be improved.
Fashola, who stated this yesterday in Maiduguri at the monthly meeting with power sector stakeholders and participants at Baga Road power sub-station, said besides the non-audit of energy, vandalisation of electricity equipment in Borno State has also deprived residents and companies of regular supply of power.
The Guardian. 9 August 2016
Nigeria to raise $1bn Eurobond, seeks managers, adviser
The federal government has set machinery in motion to raise $1 billion from International Capital Market in 2016, the Debt Management Office, DMO, has disclosed.
The DMO in a statement on its website said it is seeking two lead managers and a financial adviser to organise the issuance of $1 billion Eurobonds this year.
The $1billion sale is the first tranche of a $4.5 billion Nigeria Global Medium-Term Notes Issuance Programme that runs through 2018, it said.
The DMO is seeking to appoint two international banks as joint lead managers and a local bank as financial adviser for the whole programme. Bids are to be submitted by noon on September 19, in Abuja.
Vanguard. 9 August 2016
Manufacturers want FG to re-introduce export expansion grant
The President of Manufacturers Association of Nigeria (MAN), Mr Frank Jacobs, has called on the Federal Government to re-introduce Export Expansion Grant (EEG) scheme to salvage the manufacturing sector. Jacobs made the call in an interview in Abuja.
He recalled that the scheme was earlier introduced to reduce Nigeria's dependence on oil both as a source of income and foreign exchange earnings.
He said that recipients of the export grant held an instrument called Negotiable Duty Credit Certificate (NDCC) which they used in the payment of import and excise duties.
Jacobs said that the suspension of the NDCC had affected export of manufactured goods which had drastically reduced the volume of exports.
Vanguard. 9 August 2016
14 months after, FG yet to fix refineries
Fourteen months after the advent of the current administration, the three refineries belonging to the Nigerian National Petroleum Corporation, NNPC, are yet to be fixed, with the refineries producing an average of 47,553 barrels of crude oil per day (BPD) over the last one year.
This is a far cry from theircombined installed capacity of 445,000 barrels of crude oil per day (BPD). Port Harcourt Refining Company, which is made up of two refineries, has a combined capacity of 210,000 barrels per day (BPD); while Kaduna Refining & Petrochemical Company Limited(KRPC) andWarri Refining & Petrochemical Company Limited(WRPC) have installed capacities of110,000 BPD and 125,000 BPD respectively.
Vanguard. 10 August 2016
Buhari inaugurates economic adviser, four others
President Muhammadu Buhari on Wednesday administered oaths of office on four special advisers and one permanent secretary at the Presidential Villa, Abuja.
The brief ceremony took place shortly before the commencement of a meeting of the Federal Executive Council which the President presided over.
Those inaugurated included the Special Adviser on Social Investment, Mrs. Maryam Uwais; Special Adviser on Political Matter, Senator Babafemi Ojudu; Special Adviser on Economic Matters, Dr. Adeyemi Dipeolu; Special Adviser on Planning, Tijani Abdullahi; and the Permanent Secretary, Ministry of Foreign Affairs, Ambassador Rafiu Enikanolaye.
Punch. 10 August 2016
9 Ministers in stiff defence of FG’s economic recovery plan
At town hall meeting, participants lament Nigerians suffering hardship, hunger
NINE ministers present at the town hall meeting held in Abuja, on Tuesday, made strong defence of the economic recovery plans of President Muhammadu Buhari’s government.
The ministers also defended the conservative borrowing by the administration to invest in capital projects.
Leading them were Ministers of Finance, Kemi Adeosun; Budget and National Planning, Udoma Udoma; Agriculture and Rural Development, Audu Ogbeh and the Minister of Environment, Amina Mohammed.
Nigerian Tribune. 10 August 2016
Again, lack of funds threatens 2016 capital projects
Transn N331.58bn released, N100bn pending
Eight months into the year, the Federal Government, yesterday, admitted it is facing challenges in terms of revenue to finance the 2016 budget.
It, however, said that about N331.58bn has so far been released for execution of some capital projects, while another N100bn is expected.
The Guardian. 10 August 2016
Petrol should sell for N151.87/litre, marketers insist
Though attempts have been made to assure Nigerians that there are no plans to increase the pump price of Premium Motor Spirit, popularly referred to as petrol, The PUNCH has gathered that the actual price at which the product should sell at filling stations is N151.87 per litre.
This "realistic" price is more than the maximum N145 per litre fixed by the Federal Government on May 11, 2016 when it liberalised the downstream oil sector.
Punch. 10 August 2016
CBN okays write off of banks' bad loans
The Central Bank of Nigeria (CBN) may have approved the write off of some banks' bad loans for which provisions have been made to help clean up their balance sheets.
The lifeline comes amidst pressures on banks, whose loan books have been hit by shrinking economy, falling currency and foreign exchange shortages following the slump in oil prices.
Several commercial banks had requested the apex bank to amend its rule requiring them to keep non-performing loans (NPLs) on their books for one year even after they have been fully provided for.
It was on the basis of this request that CBN granted them permission to write off these bad loans but on a one-off basis that applies until the end of this year.
Daily Sun. 10 August 2016
CBN flays forex dealers over abuse of discount
• Warns against non-compliance
• Banks may write off bad loans this yearThe Central Bank of Nigeria (CBN) was again compelled to intervene on the interbank foreign exchange (forex) market on Tuesday to shore up the naira and check its free fall.
The bank had flayed authorised forex dealers for abuse of its discount window, forcing it to read the riot act to offenders, warning that further abuse would foreclose future access to the opportunity.
The Guardian. 18 August 2016
Nigeria records highest drop in output at OPEC
To lose N120b as gas export line remains shutNigeria is fast losing its clout among global oil producers as the country recorded the highest drop in crude production in the Organisation of Petroleum Exporting Countries (OPEC) in July.
OPEC, which accounts for at least 40 per cent of the global oil supply market, yesterday put unplanned crude oil supply disruptions among its members at 2.3 million barrels per day (mbpd) in July, due to increased outages in Nigeria and Libya.
The Guardian. 11 August 2016
South Africa overtakes Nigeria as largest economy on the continent in dollar value
Experts fault assessment criteria
Nigeria has lost its position as Africa's largest economy to South African in dollar terms.
This came as the rand recorded gains to close at 13.2805 per dollar, with the naira weakening at 2.7 per cent, to N320 to $1, at the close of business yesterday.
From a Gross Domestic Product (GDP) value of $510 billion to the present assessed $296 billion due to weakened naira, Nigerian economy is believed to have contracted by about 42 per cent compared to the South African economy that contracted from the assessed $370 billion to $310 billion.
The Guardian. 11 August 2016
India, Spain, Netherlands buy 43% of Nigeria's crude oil - NNPC
India, Spainand The Netherlands have emerged biggest buyers of Nigeria's crude oil over a 12-month period, from June 2015 to May 2016, according to a document obtained, yesterday, from the Nigerian National Petroleum Corporation, NNPC.
According to the NNPC, Nigeria exported a total of 319.747 million barrels of crude oil to the three countries in the period under review, representing 42.98 per cent of its total crude oil exports of 743.958 million barrels.
Vanguard. 12 August 2016
2016 budget funding: FG to raise additional N110bn bond next week
The Federal Government will raise N110 billion from its bonds issuance next week in continuation of its 2016 budget funding strategy.
The Debt Management Office, DMO, which is spear-heading this option, gave the breakdown of the latest bond roll-out as N40 billion bond maturing in 2036, N30 billion maturing in 2026 and N40 billion of debt maturing in 2021. The trade would be conducted using the dutch auction system.
Vanguard. 12 August 2016.
Other Economic and Business Indicators
|Monetary Policy Rate||14%
|Inter-Bank Call Rate||35.26%
|Prime Lending Rate||16.78%
|Maximum Lending Rate||26.93%
|External Reserve||USD 25,901,023,883
(10 August 2016)
|Exchange Rate (Inter-Bank)
12 August 2016
|Exchange Rate (Parallel Market)
12 August 2016
|Treasury Bill Rate (91 Days)||8.04%
|Currency in Circulation (Million Naira)||1,684,725.89
|Banks Reserves(Million Naira)||3,685,473.98
|External Debt - FGN + States (USD million)||10,718.43
|Local Debt - FGN only (NGN million)||8,836,995.86 (Dec 31, 2015)|
|Bank Credit to to Private Sector (NGN million)||21,424,953.01
|Demand Deposits at Banks (NGN million)||7,746,745.22
|Nigeria's Merchandise Trade||2,723.9billion (Quarter 1, 2016)|
|Crude Oil||$40.62 (OPEC Daily Basket, August 11 2016)|
Source: CBN, NBS and DMO
Compiled by: Research Department, NACCIMA
15 August, 2016