Economic and Business News

For the Week ending, Friday, 19 May, 2017


PARIS CLUB REFUND: FG, Govs agree to pay

PROSPECTS of fresh legal battle between the federal, state governments on one hand and one of the consultants that pursued the repayment of the excess deductions made on Nigeria's repayment of foreign loans, Linas International Limited, may have been averted as both parties have resolved to abide by judicial decisions on the matter.

It would be recalled that the federal and the state governments failed to obey the 2013 court judgement in favour of the consultant to pay 20 percent as legal and consultation fees for negotiating the repayment of the excess deductions on foreign loans repayment.

Vanguard. Friday, 12 May 2017


FG to launch citizen’s budget portal for openness, transparency

In an effort to improve Nigeria's position in the International Budget Partnership, IBP, index, plans are underway by the Federal Government to launch a citizens budget portal to ensure openness and transparency of the budget process, Minister of Budget and National Planning, Senator Udoma Udo Udoma, has said.

He stated this at the workshop on Budget Transparency and Accountability, organised by Collaborative Africa Budget Research Initiative, CABRI, in conjunction with the Budget Office of the Federation, BOF, in Abuja, yesterday.

The minister, who said the present administration was committed to engendering greater transparency budget preparation process and participation, regretted that Nigeria was still ranked lower than some African countries in budget openness and citizens' participation

Vanguard. Friday, 12 May 2017


Economic experts react as NASS passes N7.441trn 2017

ABUJA -THE National Assembly, yesterday, passed the 2017 Appropriation Bill of N7.441 trillion, which represented an increase of N143 billion from what was presented last December by President Muhammadu Buhari. The increase in expenditure came with a significant mark up in the benchmark crude oil price to $44.5 per barrel from the N42.5 per barrel proposed by the President.

However, the National Assembly maintained the daily crude oil production of 2.2 million barrels, and exchange rate of N305 to $1 as proposed by the President. Details of the bill show that 30 per cent or N2.18 trillion was allocated to capital expenditure, while recurrent expenditure (non-debt) and debt service received N2.987 trillion and N1.84 trillion respectively.

Vanguard. Friday, 12 April 2017


Nigeria's oil production increases by 274,000bpd

Crude oil production in Nigeria rose by 274,000 barrels per day last month, the biggest increase among its peers in the Organisation of Petroleum Exporting Countries. But the increase was not enough to help the country regain the status of Africa's top oil producer from Angola, which it lost in recent months.

OPEC, in its Monthly Oil Market Report for May released on Thursday, put Nigeria's output at 1.484 million bpd for April, from 1.21 million bpd in the previous month, which was based on direct communication.  

Punch. Friday, 12 May 2017


2017 Budget to overlap 2018, presidential assent expected immediately

There were indications that the 2017 budget passed last week by the National Assembly will run into the first half of 2018, the third consecutive time the budget year would be spilling over two fiscal years.

Recall that 2015 budget spilled over into 2016 forcing the government to begin implementation even before the Appropriation Bill was passed into law and ahead of the Presidential assent.

Similarly, that of 2016 budget was run officially up till May, 05, 2017 when it formally expired and closed, and to avoid grounding the wheels of governance, the Federal Government had to resort to the provisional 25 per cent recurrent expenditure allocations in the 2017 budget ahead of its passage by the National Assembly and Presidential assent

Vanguard. Sunday, 14 May 2017


House Committee asks NNPC to disclose cost of imported petrol

The House of Representatives Ad hoc Committee on Review of Pump Price of Petrol has directed the NNPC and its subsidiaries to make public the true cost of imported petrol. The Chairman of the Committee, Rep. Raphael Igbokwe, gave the directive in an interview with the NewsAgency of Nigeria on Saturday in Lagos.

Igbokwe spoke on the side lines of the committee's visit to Lagos depots of some private operators involved in transportation and distribution of petrol from the ports to the consumers. NAN reports that the depots visited by the committee are Folawiyo Energy Limited, WOSBAB Energy Solutions, First Royal and Stallionaire Oil & Gas Limited.
According to him, NNPC and its subsidiaries sourced 90 per cent of petrol while private marketers sourced only 10 per cent of the product into the country.

"The reason for our curiosity and unannounced visit to some depots is that our investigation shows that importation of petrol is no longer profitable to the private marketers and dealers.

Punch. Sunday, 14 May 2017


BOI Shops For N1tn To Finance Economic Recovery Plan

The Bank of Industry is seeking to raise about N1tn from local and international sources to finance the industrial component of the Economic Recovery and Growth Plan. The Acting Managing Director, BOI, Mr. Waheed Olagunju, stated this in Abuja at the 57th Annual General Meeting of the bank.

The ERGP, which was launched last month by President Muhammadu Buhari, is the government's blueprint to take the economy out of recession and ensure inclusive growth and sustainable development. Olagunju said the N1tn would be used to support ventures that would fast-track the country's realisation of the Sustainable Development Goals.

This, he added, would enable the bank to increase its risk assets to N1.2tn by 2019. He noted the bank had commenced discussion with the Development Bank of Nigeria and some foreign as well as multilateral development finance institutions.

Punch. Sunday, 14 May 2017


5,000 Bauchi Farmers To Benefit From Greenland-Initiated Loan Facility

No fewer than 5,000 farmers in Bauchi state are expected to benefit from agricultural loan facility initiated by a Bauchi-based firm, Greenland Farmers and Business Solutions Ltd, in collaboration with Tijarah Micro-Finance Bank, Bauchi.

Chairman of the firm, Alhaji Ahmed Tahir, who disclosed this to newsmen on Sunday in Bauchi, said the beneficiaries were drawn from seven local government areas of the state, namely Bauchi, Damban, Dass, Ganjuwa, Shira ,Toro and Ningi.

He said the facilities, to be funded by the African Development Bank, would enable each of the 5,000 farmers to secure input worth N230, 000 to N250, 000, for the cultivation of sorghum, maize, sesame, soya beans and rice.

Vanguard. Sunday 14 May 2017


Oil jumps to $52 as Saudi, Russia agree to extend deal till 2018

Oil prices began the week on a positive note, as Saudi Arabia and Russia, the world's largest producers, agreed to extend the historic OPEC deal till March 2018.

In a joint statement to journalists on Monday, Khalid al-Falih, Saudi's energy minister and Alexander Novak, said they would do whatever it took to curb oversupply. "There has been a marked reduction to the inventories, but we're not where we want to be in reaching the five-year average," Reuters quoted Falih to have said at a briefing in Beijing alongside Novak.

"We've come to conclusion that the agreement needs to be extended".

The Sun. Monday, 15 May 2017


Inflation rate drops for third consecutive month to 17.24%

The National Bureau of Statistics on Tuesday said the Consumer Price Index which measures inflation dropped from 17.26 percent in March to 17.24 per cent in the month of April.

The NBS in the report stated that the 0.02 per cent points in inflation rate make it the third consecutive month of decline in the CPI. This, the report added, is an indication that the high food and non-food prices in the, as well as the unfavourable base effects of the 2016 prices, have started easing.

The report read in part, “The Consumer Price Index which measures inflation increased by 17.24 percent (year-on-year) though at a slower pace in April 2017, 0.02 per cent points lower from the rate recorded in March (17.26) per cent.

Punch. Tuesday, 16 May 2017


2017 budget at risk as FG incurs N404b deficit in Feb

LAGOS - In spite of increase in Federally-collected revenue, buoyed by increase in crude oil price, the Federal Government recorded a deficit of N404 billion for the month of February, 2017. The Central Bank of Nigeria, CBN, disclosed this in its economic report for February posted on its website, yesterday, indicating another threat to the budget.
The report among other things showed that banks borrowed N4.2 trillion from the apex bank during the month, while they paid N3.2 billion as interest to the apex bank.

The report stated: "The estimated Federal Government retained revenue for the month of February 2017, at N194.38 billion, was below the 2017 provisional monthly budget estimate of N337.48bn and the receipts in January 2017 by 42.4 per cent and 5.9 per cent, respectively. Of the total receipt, Federation Account accounted for 68.5 per cent, while Exchange Gain, FGN Independent Revenue, VAT, Excess Crude, and NNPC refund accounted for 11.6, 6.5, 5.4, 4.7, and 3.3 per cent, respectively.

Vanguard. Wednesday, 17 May 2017


External Reserve drops to $30.78bn as naira remain N385/$

The nation's external reserve dropped $30.78 billion on Monday, the lowest in ten days, even as the naira remain stable at N385 per dollar in the parallel market exchange rate.

The external reserve data released today by the Central Bank of Nigeria (CBN) showed that external reserve continued its downward trend to $30.78 billion as at end of Monday. This represents decline of $100 million when compared with the closing level of $30.88 billion Friday last week.

The reserve has been on the downward trend since May 4th2017, when it reached a peak of $30.99 billion. Since then the reserve has fallen by $210 million.

Vanguard. Wednesday, 17 May 2017


Kano state govt spends over N200m to train mechanics, panel beater

The Kano state governor, Dr Abdullahi Ganduje yesterday the state government has spent over N200 million to train over two hundred indigenes of the state to acquire skills as Mechanics, Panel Beaters and welders at the Peugeot Automobile or Nigeria Training Centre.

Dr Ganduje who made the disclosure in Kaduna Wednesday when he visited the trainees amin Kaduna to assess their performance said the initiative was to reduce the level of unemployment in the state and to provide a skilled manpower in modern mechanics and mechatronics

Vanguard. Thursday, 18 May 2017


MSME Clinics: FG Reiterates Plans To Boost Small Businesses

ACTING President, Prof. Yemi Osinbajo, has reiterated Federal Government's plan to support small businesses, noting that inauguration of the Micro, Small and Medium Enterprises (MSMEs) Clinics is to facilitate easy interactions between small businesses and regulatory agencies.

Osinbajo stated this, in Katsina, at a gathering of small scale businesses, industry and stakeholders across the public and private sectors involved in developing micro, small and medium scale enterprises at the launching of the Katsina State's MSMES Clinic.

According to him, the MSMEs Clinics that is now going round major cities in the country was designed to give small businesses the opportunity "to meet with the industry regulators, to talk to them and to hear their problems". He added that he was so excited to see not only business men but women who are focused and serious about their businesses.

Vanguard. Thursday, 18 May 2017


CBN releases list of 36 items valid for access to FOREX

The Central Bank of Nigeria yesterday released list of 36 items valid for access to foreign exchange in the foreign exchange market. In a circular to all banks and the general public yesterday the CBN said that the list of the 36 items valid was released to clarify misconceptions about details of the 41 items banned from accessing dollars in the foreign exchange market.

Titled: "Clarification on items valid for foreign exchange in the Nigerian Foreign Exchange market", and signed by the Director, Trade and Exchange Department, CBN, Mr. W.D Gotring, the circular stated: "Following misconceptions and enquiries across the market, the is to clarify to the authorised dealers, Nigerian Customs Service and the general public that the following items with their HS codes remain 'Valid for foreign exchange'."

Vanguard. Thursday, 18 May 2017

Other Economic and Business Indicators


(Q4, 2016)

Inflation Rate
(Year-on-Year change)

(April, 2017)

Unemployment Rate

(Q3, 2016)

Underemployment Rate

(Q3, 2016)

Monetary Policy Rate

(March, 2017)

Inter-Bank Call Rate

(December, 2016)

Prime Lending Rate

(December, 2016)

Maximum Lending Rate

(December, 2016)

External Reserve

USD 30,723,881,733  
(17 May, 2017)

Exchange Rate (CBN)
17 May 2017

USD: 305.45
POUNDS: 396.05
EUROS: 339.60

Exchange Rate (Parallel Market)
17 May 2017

USD: 385.00
POUNDS: 497.00
EUROS: 420.00

Liquidity Ratio


Treasury Bill Rate (91 Days)

(5 April, 2017)

Currency in Circulation (Million Naira)

(December, 2016)

Banks Reserves(Million Naira)

(December, 2016)

External Debt - FGN + States (USD million)

(as at June 30, 2016)

Local Debt - FGN only (NGN million)

(as at June 30, 2016)

Bank Credit to to Private Sector (NGN million)

(December, 2016)

Demand Deposits at Banks (NGN million)

(December, 2016)

Nigeria's Merchandise Trade

5,7286.6 billion (Quarter 4, 2016)

Crude Oil

$50.87 (OPEC Daily Basket, May 19, 2017)

Source: CBN, NBS and DMO
Compiled by: Research Department, NACCIMA
22 May, 2017