Summary of the top business, economic and political news in Nigeria.
NAIRAMETRICS BUSINESS & ECONOMY
Latest Tanker Drivers’ Strike Reveals A Striking Theory About The FG – Nairametrics| If by now you have not bought sufficient litres of petrol to last for the week, you may be regretting that decision very soon. This is because the Petroleum Tanker Drivers (PTDs) have stopped transporting products across the country. Source Nairametrics Read More
A Case Against Floating The Naira – Nairametrics| On Friday, the Naira closed at N390/$ down from N520/$ in January. The development follows a change of heart by the Central Bank of Nigeria (CBN), in February 2017, to ramp up Dollar sales towards the retail segment. The Naira appreciation at the parallel market took a lot of people by surprise, and while the CBN appears to be winning plaudits by the wider populace, the sentiment is not universal. Source Nairametrics Read more
Alternatives To Floating The Naira – Nairametrics| At this juncture, while I am willing to agree to the merits of a market determined FX regime, I believe that an exchange rate system is not an end in itself but a means to an end or ends, which are a fairly reasonable FX allocation system and a fairly valued exchange rate. I used the words fairly valued as exchange rate markets are never perfect in that they do not lead to a price which reflects the fundamental value of a currency as dictated by purchasing power parity (PPP). Source Nairametrics Read More
Inflation: Terminal operators’ earnings drop by 22% – Report published by the top global accounting and audit firm, Deloitte, has revealed that terminal handling charges, the main revenue stream of terminal operators in the country, declined by 22.4 per cent between 2006 and 2016 as a result of depreciation of the naira and inflation. Source Punch Read More
109 Lagos retirees get N582m pensions – The Lagos State Government has released N582.19m for the payment of 109 retirees’ entitlements for the month of March. Source Punch Read More
No going back on strike today – NUPENG – The planned indefinite strike by the Petroleum Tanker Drivers arm of the Nigeria Union of Petroleum and Natural Gas Workers will commence as scheduled today (Monday), the union said on Sunday. Source Punch Read More
Tools traders inaugurate N3.56bn shopping complex – More than 2,550 members of the Tools and Hardware Dealers Association of Nigeria have relocated from the Agarawu Street Tools Market, Idumota to a permanent N3.56bn mall at the Lagos International Trade Fair Complex. Source Punch Read More
AfDB approves $450m trade finance deal for Afreximbank – This composite facility will help to expand Afreximbank’s risk bearing capacity for the confirmation of letters of credit and to support more trade through the provision of increased liquidity to local financial institutions and corporates in Africa. Source Guardian Read More
US Nigeria Council targets more investments – A new business organisation, US Nigeria Council, is set to advance diversification, job creation and increased investment in Nigeria. Source Punch Read More
CBN warns bank CEOs over forex – Bank chiefs caught frustrating efforts by the Central Bank of Nigeria (CBN) at getting more dollars to end-users risk severe punishment, the apex bank warned yesterday. Source The Nation Read More
Fire Service to inspect insurance certificate for public buildings – The Federal Fire Service has indicated that it would begin inspection of public buildings for compliance with its compulsory with its policy on public building insurance. Source Vanguard Read More
Oil theft: Military halts Kachikwu’s drone deployment plan – The military has halted plans by minister of state for petroleum resources, Dr. Ibe Kachikwu, to tackle pipeline vandalism with drones’ deployment, which cost Nigeria $7 billion annual loss. Source New Telegraph Read More
Osaisai ends tenure at Atomic agency after 11yrs – The Chairman/CEO of National Atomic Energy Commission (NAEC), Dr. Franklin Erepamo Osaisai, has ended his tenure after spending 11 years as the pioneer head. Source Daily Trust Read More
New land survey fees begin in Lagos, threaten homeownership – Hopes of cheaper construction cost and land ownership for prospective property developers may still be a pipe dream going by fresh increase in land survey fees in Lagos area by the Nigerian Institution of Surveyors (NIS). Source Guardian Read More
FMDQ OTC records N20. 99tn transactions in two month – The FMDQ OTC Securities Exchange recorded N22. 99tn worth of transactions in fixed income and currency markets in the first two months of 2017. Source Punch Read More
Nigeria’s debt burden to hit N19.3tn by December – Analysts have cautioned the government against plunging the nation into another debt trap, even as there are plans to raise funds from external sources to finance critical infrastructure. Source Punch Read More
Using new passport? You need NDLEA backing to obtain visa – Nigerians with new passports seeking to travel to Indonesia will need to present a certificate of recommendation from the National Drug Law Enforcement Agency, among other documents, to process their visas. Source Punch Read More
5 Steps To Become A Better Problem Solver – Problems are a natural, everyday occurrence of life, especially if you live in Nigeria. Whether in our relationships, at our jobs or even on the road, our problem-solving skills are put to the test continuously. Source Nairametrics Read More
Nigerian central bank offers $150 million in currency forwards – Nigeria’s central bank said on Monday that it had offered $150 million in currency forwards, as it sold dollars to try to narrow the spread between the naira’s official and black market exchange rates. Source Reuters Read More
Why Tiger Brands Got It Right With UAC Foods – Nairametrics|Why Tiger Brand Got It Right With UAC Foods Despite losing over $200 million in its acquisition of Dangote Flour Mills, South Africa’s Tiger Mills is still keen on investing in Nigeria. Its partnership with UAC Foods is profitable, and the company is keen on more opportunities. Source Nairametrics Read More
MultiChoice hikes DStv, GOtv subscription rates – MultiChoice on Sunday announced that it would effect a price adjustment of five per cent on all its DStv and GOtv packages from May 1, 2017. Source Punch Read More
Access Bank lists priorities for 2017 as shareholders applaud N18.8b dividend – Access Bank Plc has outlined a three-point priority for the 2017 business year as shareholders commended the board and management of the first tier bank for its resilient performance and dividend payout. About N18.8 billion was paid out for the 2016 business year. Source The Nation Read More
Agip set to receive tenders for $13.5bn project – The Nigerian Agip Exploration Limited will begin to receive commercial proposals this month for the development of its Zabazaba deepwater project, which is estimated to gulp $13.5bn. Source Punch Read More
Union Bank plans N50b rights issue in Q2 – Union Bank of Nigeria (UBN) Plc is concluding arrangements to float a rights issue of N50 billion this quarter as the first-generation bank moves to accelerate its business growth. Source The Nation Read More
Shell hires Dormalong, others for Bonga TAM – Shell Nigeria Exploration and Production Company (SNEPCo) has hired some indigenous service firms, including Dormanlong, to work on its Bonga facility, FPSO (the floating production, storage and offloading vessel), undergoing turnaround maintenance (TAM). Source The Nation Read More
We’ve reduced gas flaring by 26% – NNPC – The Nigerian National Petroleum Corporation on Sunday said it had succeeded in reducing gas flaring in by 26 percentage points in the last 10 years from 36 to 10. Source Punch Read More
Naira devaluation drags Japaul into loss – Japaul Oil and Maritime Services Plc has said its loss after tax of N22.5bn recorded for the year ended December 31, 2016 was largely due to the devaluation of the country’s currency. Source Punch Read More
NIPCO takes over ExxonMobil’s 60% stake in Mobil Oil Nigeria – NIPCO Investments Limited, a subsidiary of NIPCO Plc, at the weekend took over the 60 per cent majority equity stake of ExxonMobil Oil Corporation in Mobil Oil Nigeria Plc. Source The Nation Read More
Rosabon Emerging Enterprise Fund launched – Rosabon Financial Services has launched Rosabon Emerging Enterprise Fund (REEF) to empower the small and medium scale enterprises, SMEs in Nigeria. Source The Nation Read More
Linkage inroduces new third party policy to address economic crunch – Linkage Assurance Plc has introduced a new motor third party insurance policy where the insured’s vehicle is guaranteed a maximum of N250,000 cover. Source The Nation Read More
Unity Bank supports Nigerian Immigration Service – Unity Bank Plc has upgraded the Nigerian Immigration Service (NIS) lounge in Festac Town, Lagos. The facility, the bank said, would make it easier for people to obtain and renew their international passports at the NIS office. Source The Nation Read More
FG, Shell, Agip to Sign FID for $13.5bn Zabazaba Deepwater Project in Q2 2017 – The federal government, Shell and the Nigerian Agip Exploration Limited (NAE) will sign the Final Investment Decision (FID) for the $13.5 billion Zabazaba Deepwater project located in Oil Prospecting Lease (OPL) 245 in the second quarter of this year. Source Thisday Read More
Group Signs MoU with Dangote – Bontus Group of Companies has signed a Memorandum of Understanding (MoU) with Dangote Group as part of efforts to promote its dynamic nature in the production of essential commodities in the economy. Source Thisday Read More
UBA to Expand to Six More African Countries – The United Bank for Africa Plc (UBA) has said it plans to extend its presence in Africa from 19 countries, Nigeria inclusive, to 25 countries by 2024. Source Thisday Read More
FMBN invests N2.3bn on 624 houses in Oyo –The acting Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Mr. Richard Esin, at the weekend said that the bank had invested N2.303 billion to finance construction of 624 housing units in Oyo State. He said that the bank had also funded 527 housing project units through different developers in Ibadan. Source Daily Trust Read More
Access Bank appoints executive director – Access Bank has appointed Dr. Gregory Ovie Jobome as its executive director, risk management division. Source New Telegraph Read More
Seplat Retirement Of Executive Director – Seplat announces the retirement of Mr. Stuart Connal as the Chief Operating Officer and Executive Director of the Company, effective 30 March 2017. Source NSE Read More
ALERT: Seplat Reports N45 billion Loss (2016 FY) – Seplat today released audited results for the financial year ended 31 December 2016. Source Nairametrics Read More
ALERT: Jaiz Bank Reports 66% Drop in Profit (2016 FY) – Jaiz Bank today released audited results for the financial year ended 31 December 2016. – Source Nairametrics Read More
Omoluabi Releases Audited 2016 Annual Report – Source NSE Read More
Med-View Airline Plc Releases Audited 2016 Annual Report – Source NSE Read More
Meyer Plc Releases Audited 2016 Annual Report – Source NSE Read More
Wema Bank Plc Releasses Audited 2016 Annual Report – Source NSE Read More
Rep seeks 20-year jail term for financial crimes –The House of Representatives wants persons convicted of economic and financial crimes to be jailed for 20 years. Source Punch Read More
$1.1 billion Malabu deal: EFCC wants former Attorney General, Adoke, arrested – The Economic and Financial Crimes Commission, EFCC, has approached the Abuja Division of the Federal High Court, with a request to compel former justice minister, Mohammed Adoke, to attend his ongoing trial for alleged fraud. Source Premium Times Read More
DSS Clears Saraki, Others over Alleged N310m Theft – The Department of State Services (DSS) has cleared Senate President Bukola Saraki and members of the National Assembly over what it described as “malicious falsehood’’ being spread around by one of its dismissed officers, Abdulrasheed Maigari, who recently claimed that he and other security personnel, including an army captain stole N310 million from the Senate President while guarding his house in Maitama, Abuja. Source Thisday Read More
Maku knocks Al-Makura for N6.1bn airport project – The candidate of All Progressives Grand Alliance in the 2015 governorship election, Labaran Maku, has condemned the alleged approval of N6.1bn for the construction of Kwandare-Lafia Airport by the state executive council. Source Punch Read More
BREAKING: Court unfreezes Ozekhome’s account – The Federal High Court in Lagos on Monday lifted the order barring a Senior Advocate of Nigeria, Chief Mike Ozekhome, from accessing his Guaranty Trust Bank account into which he received N75m legal fee from the Ekiti State Governor, Ayodele Fayose.Source Punch Read More
Buhari nominates Okonjo-Iweala as DG World Trade Organization
President Muhammadu Buhari nominated the former Minister of Finance and Coordinating Minister of the economy, Ngozi Okonjo Iweala, as the Director-General of the World Trade Organization (WTO).
President Muhammadu Buhari has nominated the former Minister of Finance and Coordinating Minister of the Economy, Ngozi Okonjo Iweala, as the Director-General of the World Trade Organization (WTO).
This was seen in a tweet posted by the Presidential aide on Digital and New Media, Tolu Ogunlesi, in the early hours of Friday, June 5, 2020.
In the statement, Ogunlesi said that the current Director-General of the intergovernmental organization, Roberto Azevedo, is stepping down from his position on August 2020, a year ahead of the end of his tenure.
Azevedo, who has been the head of the WTO since 2013, is stepping down at this critical period of global economic crisis and the trade war between the United States of America and China.
This means that the election that was earlier scheduled for 2021 when his tenure was supposed to expire might be coming up much earlier for a new four-year term.
Tolu Ogunlesi in his statement said, ”President Muhammadu Buhari has nominated Okonji-Iweala as Nigeria’s candidate for the position of the Director-General of World Trade Organization. DG Azevedo is stepping down in August 2020, a year earlier, so the election of the new DG, originally scheduled for 2021, may take place much earlier”.
DG Azevedo is stepping down in August 2020, a year early, so the election of a new DG, originally scheduled for 2021, may take place much earlier.
— tolu ogunlesi (@toluogunlesi) June 4, 2020
Just-in: AfDB board agrees to an independent probe of Akinwumi Adesina
The independent review shall be conducted by a neutral high calibre individual with unquestionable experience, high international reputation and integrity within a short time period of not more than two to four weeks maximum, taking the Bank group’s electoral calendar into account.
The Bureau of the Board of Governors of the African Development Bank (AfDB), has agreed to authorize an independent review of the report of the ethics committee of the bank’s board of directors on the allegations levied against the President of the Bank, Akinwumi Adesina.
This was contained in a communique which was released and signed by the Chairperson of the Bureau of Board of Governors, Ms Niale Kaba, after the meeting of the bureau board of governors on June 4, 2020, with respect to the complaints against the President of the bank.
In taking the decision, the Bureau agreed that the ethics committee performed its role on this matter in accordance with the applicable rule under resolution B/BG/2008/11 of the board of governors and that the Chairperson of the Bureau of Board of Governors performed her role in accepting the findings of the ethics committee in accordance with the said resolution.
The bank’s board of governors in its statement said, ‘’Based on the views of some Governors on the matter and the need to carry every Governor along in resolving it, the Bureau agrees to authorize an independent review of the report of the ethics committee of the board of governors relative to the allegations considered by the ethics committee and the submissions made by the President of the Bank Group thereto in the interest of due process.
‘’The independent review shall be conducted by a neutral high calibre individual with unquestionable experience, high international reputation and integrity within a short time period of not more than two to four weeks maximum, taking the Bank group’s electoral calendar into account.
‘’The Bureau agrees that, within a three to six months period and following the independent review of the ethics committee report, an independent comprehensive review of the implementation of the bank’s group whistleblowing and complaints handling policy should be conducted with a view to ensuring that the policy is properly implemented, and revising it where necessary, to avoid situations of this nature in the future.’’
Following the allegations of unethical conducts, questionable appointments and contract awards by a group of whistleblowers and the subsequent clearance of all charges by the bank’s ethics committee, the United States Government, who is the largest shareholder outside Africa, asked for an independent probe of those allegations.
The US treasury secretary questioned the integrity of the committee’s process as well as the internal processes of the bank.
Adesina, a few days ago, met with President Muhammadu Buhari, where he assured of the country’s support towards his travails and his second term bid for the Presidency of the multilateral institution.
FG removes cap on petrol price, allows marketers to fix price
The price cap per liter in respect of Premium Motor Spirit (PMS) is removed from the commencement of these Regulations.
The Federal Government has removed the cap on Premium Motor Spirit (PMS) price, popularly known as petrol.
This was disclosed by the Petroleum Products Pricing Regulatory Agency (PPPRA) via a memo, which was dated March 30, 2020, but realised on May 4, 2020, titled ‘Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020.
What it means: With the new development, marketers now have the freedom to fix the price of the commodity and sell above the price given by the agency.
Executive Secretary, PPPRA, Abdulkadir Saidu, explained that the agency would continue to monitor trends in the crude oil market and advise the Nigerian National Petroleum Corporation (NNPC) and oil marketers on the monthly guiding price for the commodity.
“The price cap per litre in respect of Premium Motor Spirit (PMS) is removed from the commencement of these Regulations. From the commencement of these Regulations, a market-based pricing regime for PMS shall take effect,” he said.
Meanwhile, Nairametrics had reported that the agency announced a new retail price band for oil marketers.
In a circular dated May 31st, as seen by Nairametrics, the downstream regulator said oil marketers are now expected to sell petrol within the price range of N121.50 and N123.50. Part of the circular said:
“Please recall the recently approved pricing regime which became effective March 19, 2020, and the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations.”