Economic and Business News

For the week ending, Friday 13th January 2017


Delta registers 30,000 farmers for CBN/Anchor Borrowers Programme

Delta Government has registered over 30,000 farmers across the selected enterprises of Cassava, Oil Palm, Rice and Fisheries for the CBN Anchor Borrowers Programme.

The State Commissioner for Agriculture and Natural Resources, Mr. Austin Chikezie, said that the aim was to boost the production of Fisheries, Cassava, Oil Palm and Rice production under the Central Bank of Nigeria’s ABP in the state.

The commissioner said that the state policy on agriculture was directed towards achieving agricultural growth and development.

Punch. Monday, 9 January 2017


Customs generated N898bn as revenue in 2016- Spokesman

The Nigeria Customs Service has generated N898 billion as revenue in 2016, including VAT,says the service Spokesman, Mr Joseph Attah.

Attah told the News Agency of Nigeria (NAN) on Monday in Abuja that the figure was however less than the N904 billion collected in 2015.

He attributed the shortfall to the difficulty in accessing foreign exchange and removal of the 41 items.

According to him, the service was given a target of N937 billion as revenue in 2016.

Vanguard. Monday, 9 January 2017


NUPENG lauds FG's policy on petroleum products importation

The Nigerian Union of Petroleum and Natural Gas Workers has thrown its weight behind the Federal Government's policy to end importation of petroleum products by 2018.

The NUPENG's General Secretary, Mr Joseph Ogbebor, gave the union's position on Monday in Lagos.

TheMinister of Science and Technology, Dr. Ogbonnaya Onu, had said on Wednesday in Ebonyi announced that by 2018, Nigeria would stop the importation of refined petroleum products.

Ogbebor said importation of petroleum products was unnecessary and called for, noting that previous administrations had failed to do the right thing.

Punch. Monday, 9 January 2017


CBN reduces weekly forex sale by 25% as Nigeria's Eurobonds appreciate

The Central Bank of Nigeria (CBN) last week reduced its weekly foreign exchange sale to banks by 25 percent, even as prices of Nigeria's Eurobond rose amid renewed investor's interest.

Previously the CBN have been selling $7.5 million dollars per week to banks through the interbank foreign exchange market. Financial Vanguard investigations however reveal that the apex bank sold $6 million to banks last week, indicating 25 percent reduction. The dollars were sold at an average interest rate of N304 per dollar.

The reduction notwithstanding, the Naira appreciated against the dollar at the interbank market as the interbank foreign exchange rate dropped by 0.12 percent to N314.625 per dollar.

Vanguard. Monday, 9 January 2017


Nigeria's oil exports face fresh disruption

The nation's crude oil production and export have hit a fresh snag following the shutdown of the Trans Niger Pipeline, one of two major pipelines transporting the Bonny Light crude grade for export.

The TNP, which is operated by Shell Petroleum Development Company of Nigeria Limited, was shut by the oil major after a fire at Kpor in Ogoniland, which may worsen the country's output due to unplanned disruptions.

According to a report on Shell's website, the pipeline transports around 180,000 barrels of crude oil per day to the Bonny Export Terminal and is part of the gas liquids evacuation infrastructure, critical for continued domestic power generation (Afam VI power plant) and liquefied gas exports.

Punch. Sunday, 8 January 2017


We need economy that delivers jobs, not handouts -OPS tells Buhari

Manufacturers Association of Nigeria (MAN), at the weekend, lambasted President Muhammadu Buhari's economic progrmme of giving N5,000 stipend to indigent Nigerians, saying that the citizens need an economy that provides jobs and supports manufacturing.

In a statement by the spokesman to Vice-President, Laolu Akande, the government saidthe programme is being implemented through the Conditional Cash Transfer (CCT) component of the government's Social Investment Programmes (SIP).

He said that the first batch, which commenced two weeks ago, covered nine states, and that many of the beneficiaries reportedly received their first payments by Friday, December 30. Those states are: Borno, Kwara, Bauchi, Cross River, Niger, Kogi, Oyo, Ogun and Ekiti.

The Sun. Monday, 9 January 2017


SEC sets guidelines on securities settlement

In a bid to better investors' protection and improve the efficiency of market infrastructure in Nigeria, the Securities and Exchange Commission (SEC) has unfolded its approved guidelines on securities settlement.

In a statement released on SEC website recently, SEC said its main objective for the guidelines was to promote competitive, efficient, safe and sound post-trading arrangements in Nigeria so as to restrict systemic risk.

"The main aim of this guideline is to promote competitive, efficient, safe and sound post-trading arrangements in Nigeria. This should ultimately lead to greater confidence in the securities markets and in turn limit systemic risk."

SEC mandated that at the end of each day's transaction in the Exchange Traded Securities (ETs), "the clearing agent/settlement shall generate the financial obligation of each dealing member firms and sort the financial positions of the dealing member firms based on their respective settlement banks to arrive at net position per settlement bank. .

The Sun. Monday, 9 January 2017


NNPC targets 60% local refining capacity by end of 2017

The Nigerian National Petroleum Corporation (NNPC), has said that it will reduce petroleum products importation by boosting the capacity utilisation of local refineries to 60 per cent by the end of 2017.

The NNPC Group Managing Director, Dr Maikanti Baru, made this known in a statement by the Group General Manager, Group Public Affairs Division, Ndu Ughamadu, in Abuja on Sunday.

Baru, who received the Management of Media Trust Limited, publishers of Daily Trust Newspapers, led by its Chairman, Malam Kabiru Yusuf, said that NNPC was keen on ending product importation in a few years.

"We are putting together various programmes to ensure that we achieve at least 60 per cent local refining by the end of this year."

Vanguard. Sunday, 8 January 2017


President sacks aviation agencies' heads, appoints Akinkuotu, others

President Muhammadu Buhari on Monday sacked the heads of four aviation agencies and promptly appointed their replacements.

The agencies affected include the Nigerian Airspace Management Agency, Nigerian Meteorological Agency, Nigerian College of Aviation Technology, and the Accident Investigation Bureau.

A statement signed by the Permanent Secretary, Federal Ministry of Transportation, Mr. Sabiu Zakari, on behalf of the Minister of State for Aviation, Senator Hadi Sirika, stated that Buhari approved the appointment of Capt. Fola Akinkuotu as the Managing Director of NAMA.

"Capt. Akinkuotu is a seasoned transport pilot, flight and aircraft maintenance engineer, airline chief executive and a trained aviation industry regulator," the ministry said in the statement.

Punch. Tuesday, 10 January 2017


Nigeria imports processed tomatoes worth N15bn yearly – NARICT

Nigeria is losing over N15bn annually to importation of processed tomato.

The Deputy Director, Procurement at the National Research Institute for Chemical Technology, Zaria, Alhaji Bello Abubakar, made the disclosure on Tuesday during the bidding of 2017 projects, held at NARICT in Basawa, Zaria, Kaduna State.

He said that the projects under bid included physical structure of two tomato companies at Jigawa and Yobe states, supply of fabrication (factory equipment) and construction of green house at Jigawa State.

He said, "Nigeria is the leading producer of tomato in Africa and 13th in the world, yet the country is importing over 66 million tonnes of processed tomato, valued at over N15 billion annually, according CBN report."

Punch. Tuesday, 10 January 2017


Non-implementation of gas flare penalties costs Nigeria N2.9trn

LACK of political will on the part of the Federal Government to enforce its own laws on gas flare penalties, has cost the country $14.298 billion between April 2008 and October 2016.

This came as international oil companies, IOCs, and other oil companies operating in the country fail to abide by the regulation stipulating penalty of $3.5 for every 1,000 Standard Cubic Feet, SCF, of Gas flared in the country.

Nigerian Extractive Industries Transparency Initiative, NEITI, in its latest audit report, the 2014 Nigerian Oil and Gas Audit Report, disclosed that in 2008, the Federal Government in its fiscal regime for the petroleum sector had set a penalty of $3.5 per 1,000 SCF of gas flared by the oil companies, stating, however, that the companies have refused to comply with the directive.

Vanguard. Tuesday, 10 January 2017


DISCOs risk suspension of licences over N345m unpaid fines

•Eko, Afam penalties attract additional N62m

Some electricity firms are at the verge of losing their licences three years after privatisation for failing to comply with the rules and regulations in the power sector.

This is because many electricity firms are contravening the Nigerian Electricity Regulatory Commission (NERC) Electricity Industry (Enforcement) Regulations 2014, which specified strict action against any form of unruliness in the sector, even as many are yet to pay over N345 million cumulative fines imposed by NERC.

Lack of compliance and adherence to industry rules are some of the reasons weakening the capacity of NERC to effectively regulate the industry and institute credible electricity operations in the country.Indeed, the regulator would have used part of the money realised from such penalties to execute some of its programmes, which are being challenged by paucity of funds.

The Guardian. Tuesday, 10 January 2017


Fuel scarcity looms as nation's marketers fail to repay loans

• Banks' survival threatened with N465b debts

• Why kerosene sells for N400 per litre

The inability of petroleum marketers to pay or service banks loans in the last two years is threatening further importation and could worsen the financial position of banks.

The marketers under the aegis of the Independent Petroleum Products Importers (IPPIs) said in a communiqué yesterday that members owe some banks as much as N305 billion ($1 billion) which has increased to N465 billion due to accumulated interest. They cited government's discontinuation of the fuel subsidy regime and failure to pay outstanding arrears before the new pricing regime as reasons for their problems.

The Guardian. Tuesday, 10 January 2017


FG awards contract for Niger Bridge

The Federal Government has awarded contract for early works on the Second Niger Bridge and emergency repairs at the Tamburawa Bridge in Kano State at a total cost of N16.3 billion.

Mr Mohammed Abdullahi, the Assistant Director of Information in the Federal Ministry of Power, Works and Housing, made this known in a statement on Tuesday in Abuja.

He stated that contract for the second Niger Bridge was awarded to Messrs Julius Berger (Nig.) Ltd. at a total cost of N14.4 billion.

Abdullahi noted that contract for emergency repairs at the Tamburawa bridge in Dawakin Kudu Local Government Area of Kano State was awarded to Messrs. Borini Prono & Co. (Nig.) Ltd. at a total cost of N1.9 billion.

Vanguard. Wednesday, 11 January 2017


NUPENG suspends strike

ABUJA – THE Nigeria Union of Petroleum and Natural Gas, NUPENG, Wednesday announced the suspension of the three day warning strike.

This is as the Federal Government has directed oil companies operating in the country to obey every agreement entered into with workers and also pay all the entitlement of workers that were laid off.

Both the Federal Government represented by the Minister of Labour and Employment, Senator Chris Ngige and the leaderships of NUPENG and PENGASSAN said there was a peaceful resolution of various contentious issues ranging from indiscriminate declaration of redundancy and sack of workers by some oil companies without due consultation with the leadership of the Union.

Vanguard. Wednesday, 11 January 2017


FG inaugurates NCC board, gives special task on QoS

The federal government Wednesday formerly inaugurated the board of the Nigerian Communications Commission, NCC. Chairman of the board is Senator Olabiyi Durojaiye. Other members of the board include Prof. Umar Danbatta, the Executive Vice Chairman/Chief Executive, Engr. Ubale Maska, Executive Commissioner (Technical Services), Mr. Sunday Dare (Executive Commissioner, Stakeholder Management). The non-executive Commissioners include Mr. Clement Omeiza Baiye and Senator Ifeanyi Ararume.

Vanguard. Wednesday, 11 January 2017


NPDC justifies non-remittances to Federation Account

The Nigerian Petroleum Development Company, NPDC, the upstream subsidiary Company of the Nigerian National Petroleum Corporation, NNPC, Wednesday, justified the non-remittance of its gross earnings to the Federation Account, stating that it is as a result of the fact that it is a self-financing organisation.

According to a statement by the NNPC in Abuja, Managing Director of the NPDC, Mr. Yusuf Matashi, stated this in a presentation to the Senate Ad hoc Committee on the recovery of unremitted revenue.

Vanguard. Wednesday, 11 January 2017


China pledges fresh $40bn investment in Nigeria

The Chinese Foreign Affairs Minister, Mr Wang Yi on Wednesday says his country is investing additional 40 billion dollars in Nigeria.

Yi stated this at a bilateral meeting with his Nigerian counterpart, Mr Geoffrey Onyeama in Abuja.

The minister said China had already invested up to the tune of 45 billion dollars in the Nigerian economy and was planning to invest more.

"Nigeria and China are strategic partners; our relations have been developing well; China has already invested or financed a total number of 22 billion-dollar projects here in Nigeria, another $23billion projects are on-going.

"In addition, we are also following up another over 40 billion dollars of investments, which is in the pipeline.

Punch. Wednesday, 11 January 2017


BDCs move to eliminate multiple exchange rates

To arrest continuing fall in the value of the naira against the United States dollar and eliminate multiple exchange rates in the country, the Association of Bureau De Change Operators of Nigeria has introduced an online exchange rate platform and fixed the naira to dollar reference rate at 399.

The intention, according to the association, is to help reduce the gap between the official interbank rate and parallel market rates.

The President, ABCON, Alhaji Aminu Gwadabe, said at a press conference in Lagos that members of the body had agreed to set a weekly reference rate to improve liquidity and help rebuild investors' confidence in the economy.

"Once liquidity improves, the wide margin between the parallel and official market rates will be bridged," he said.

Punch. Wednesday, 11 January 2017


Abuja Airport runway repairs to gulp N5.8bn

The Minister of State for Aviation, Sen. Hadi Sirika, has said that the proposed repair of the Nnamdi Azikiwe International Airport, Abuja, runway will cost N5.8 billion.

Sirika made this know when he answered questions from senators at plenary on Thursday.

He said the runway had become necessary in view of the fact that it was as critical as the economy of the country, adding that the runway was constructed over 30 years ago with no major repairs.

The minister gave a guarantee of 10 years, saying that the runway would serve the country for a long time after the repair.

According to him, the runway which is proposed to be shutdown from March will be reopened after six weeks for better service delivery.

He said that while the runway would be shutdown for six weeks, repairs would last for six months.

The Guardian. Thursday, 12 January 2017


Nigeria regains Africa's largest oil producer spot

It is good news from Organisation of Petroleum Exporting Countries (OPEC) which says Nigeria has reclaimed its former status as Africa's largest oil producer.

This sees the country edging out Angola by a few thousand barrels per day.

In March 2016, Angola overtook Nigeria as Africa's largest producer, with a production level of 1.782 million barrels per day, as Nigeria produced on 1.677 million bpd that month.

According to OPEC's monthly oil report for December 2016, Nigeria pumped 1.782 million barrels per day while Angola produced 1.688 million barrels per day.

The Sun. Thursday, 12 January 2017


CBN recertifies 3,147 BDCs, 71 finance houses

The Central Bank of Nigeria (CBN), yesterday, said that it has recertified 3,147 bureaux de change (BDCs) operators and 71 finance companies (FCs).

Vanguard investigation reveals that the recertification of the BDCs follows the payment of N786.8 million (N250, 000 per BDC) annual licencee renewal fee.

Meanwhile, the apex bank licenced 308 BDCs and two new finance companies in 2016. The apex bank disclosed this in the updated list of BDCs posted on its website yesterday.

The list reveals that the number of BDCs increased from 2,998 at end-June 2016 to 3,147 as at January 10, 2017. This indicated that the CBN granted operating licences to 149 new BDCs in the second half of 2016 which added to 159 new licences it granted in the first half of the year, to bring the total to 308 in 2016.

Vanguard. Thursday, 12 January 2017


PH, Kaduna, Warri refineries resume kerosene, diesel production

ABUJA- NIGERIAN National Petroleum Corporation, NNPC, yesterday, announced that the Kaduna, Port Harcourt and Warri refineries had resumed production of Dual Purpose Kerosene, DPK, and Automotive Gas Oil, AGO, otherwise known as kerosene and diesel respectively.

Similarly, Nigeria Liquefied Natural Gas, NLNG, blamed the current scarcity and high cost of Liquefied Petroleum Gas, LPG, nationwide on the inability of its LPG vessel to berth and discharge its contents at the Apapa ports since December 29, 2016, due to congestion of the port facility.

The NNPC, in a statement in Abuja, disclosed that the refineries started producing both commodities since Saturday, and were currently producing more than six million litres of kerosene and seven million litres of diesel on a daily basis.

Vanguard. Thursday, 12 January 2017


$1.3bn Development Bank of Nigeria set to take off

The Development Bank of Nigeria (DBN) is set to take off as the Federal Government has concluded the selection process of the executive management team of the development financing institution and has equally applied for an operating license from the Central Bank of Nigeria (CBN).

The team, however, is being kept under wraps as attempts to get the federal ministry of finance officials to divulge the details of the team was rebuffed yesterday. They insisted that the Finance Minister Kemi Adeosun would unveil the team at a briefing next week.

The $1.3 billion (N396.5 billion) Development Bank of Nigeria is jointly funded by the World Bank (WB), KfW (German Development Bank), the African Development Bank (AfDB) and the Agence Française de Development (French Development Agency). The bank is also finalising agreements with the European Investment Bank (EIB) for more investment.

The Guardian. Friday, 13 January 2017


No plan to devalue naira, CBN tells BDCs

The President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, says the Central Bank of Nigeria has told its members that it does not intend to devalue the naira.

The CBN also said it would support the local currency at its current levels, especially with a recent rise in oil prices,

Gwadade said the CBN Governor, Mr. Godwin Emefiele, told the group in a meeting that it was looking at ways to boost dollar liquidity at the official market to eliminate the spread to the parallel market.

The Federal Government has been pressing the BDC operators to narrow what it says is a damaging gulf between the naira's official rate – currently 305 to the dollar – and the parallel rate, which has been as weak as 490 in recent days.

Punch. Friday, 13 January 2017


NNPC proposes 28% oil royalty

In a bid to shore up government revenue, the Nigerian National Petroleum Corporation (NNPC) is proposing to increase Deep Offshore and Inland Basin Production Sharing Contract (PSC) Act by up to 28 per cent.

NNPC Chief Operating Officer (CEO), Mallam Bello Rabiu,stated this in a presentation to the Joint House of Representatives committees on the amendment of the PSC Act and an Act to establish the National Oil and Gas Museum and Research Centre in Oloibiri.

Rabiu noted that it was imperative to effect increment in royalties across all categories to increase government's take and optimise the collection of royalties and other revenue in deep water oil production activities.

The Sun. Friday, 13 January 2017


Naira plunges further, exchanges at N497 to $1

The Naira on Friday depreciated further at the parallel market as dollar scarcity worsened, the News Agency of Nigeria (NAN) reports.

NAN reports that the Naira may be seeing its worst times as the CBN will be resuming dollar sales to Bureau De Change (BDC) operators next week.

The Nigerian currency exchanged at N497 to a dollar at the parallel market, losing two points from Thursdays posting; while the Pound Sterling and the Euro traded at N597 and 515 respectively.

At the BDC window, the Naira was sold at N399 to a dollar, while the Pound Sterling and the Euro closed at N600 and N515, respectively.

Vanguard. Friday, 13 January 2017

Other Economic and Business Indicators

GDP -2.22%
(Q2, 2016)
Inflation Rate
(Year-on-Year change)
(December, 2016)
Unemployment Rate 13.9%
(Q3, 2016)
Underemployment Rate 19.7%
(Q3, 2016)
Monetary Policy Rate 14%
(November, 2016)
Inter-Bank Call Rate 15.21%
(November, 2016)
Prime Lending Rate 17.06%
(November, 2016)
Maximum Lending Rate 28.53%
(November, 2016)
External Reserve USD 26,876,344,589  
(12 January 2017)
Exchange Rate (CBN)
12 January 2017
USD: 305
POUNDS: 374.75
EUROS: 325.19
Exchange Rate (Parallel Market)
12 January 2017
USD: 497.00
POUNDS: 600.00
EUROS: 520.00
Liquidity Ratio 30%
Treasury Bill Rate (91 Days) 14%
(4 January, 2016)
Currency in Circulation (Million Naira) 1,825,664.51
(October, 2016)
Banks Reserves(Million Naira) 4,415,126.62
(October, 2016)
External Debt - FGN + States (USD million) 11,261.89
(as at June 30, 2016)
Local Debt - FGN only (NGN million) 10,606,334.22
(as at June 30, 2016)
Bank Credit to to Private Sector (NGN million) 23,069,635.07
(October, 2016)
Demand Deposits at Banks (NGN million) 8,501,818.92
(October, 2016)
Nigeria's Merchandise Trade 3,942.0 billion (Quarter 2, 2016)
Crude Oil $52.64 (OPEC Daily Basket, January 13, 2017)

Source: CBN, NBS and DMO
Compiled by: Research Department, NACCIMA
16 January, 2017