Summary of the top business, economic & political news in Nigeria.
- President Muhammadu Buhari’s approval of the withdrawal of Oil Prospecting Licences 2001, 2002 and 2003 in the Utapate Field won by indigenes of the Niger Delta is not only being tackled by the investors but may lead to chaos in the oil-rich region if not properly addressed. According to the investors, about N44.6bn signature bonuses paid for the licences is also under threat following the approval of the President to withdraw the OPLs from the winners who emerged after the Federal Government opened up the oil blocks to bidders in the 2007 bid rounds. Link
- Ekiti State residents are at the mercy of petrol black marketers, who are capitalising on the face-off between Governor Ayo Fayose and oil marketers to make brisk business. The people, who buy the commodity from neighbouring states, sell to consumers at N300 per litre, as against the government regulated price of N145 per litre. Link
- The Central Bank of Nigeria (CBN) seems determined to continue with its intervention in the country’s foreign exchange markets, as it has made arrangements for a $100 million special auction. The apex bank had last month created a special window for investors and exporters. Prior to that, it had opened windows for Personal Travel Allowance (PTA), school fees and Small and Medium Scale Enterprises (SMEs). Link
- Broadband telecommunications service providers using fourth generation (4G) technology, also known as Tier II operators, have drawn attention to the difficulties threatening to cripple their operations, with the attendant effect of derailing the broadband plan of the federal government. They further noted that the network operating expenditure (opex) of telecommunication operations has sky rocketed in the last 15 months by over 85 per cent with revenues remaining relatively flat. Link
- The Presidency on Tuesday said the cost of the houses the Federal Government was planning for Nigerians under its Family Home Fund could be as low as N2.5m. The Senior Special Assistant to the Acting President on Media and Publicity, Mr. Laolu Akande, who disclosed this in a statement made available to journalists in Abuja, said the N100bn Family Home Fund which is an initiative of the Federal Government’s social housing project would provide inexpensive mortgages to Nigerians who can afford N30,000 per month. Link
- About 2,514mw of electricity cannot be utilised due to 35 idle generation turbines across 15 Generation Companies (GenCos), even as the national grid peaked at 4,464 megawatts (mw) last Sunday shortly before the Democracy Day celebration. The causes of the unutilized electricity were traced to non-availability of gas to power, line constraints and high frequency caused by the loss of DisCos’ feeders. The Nigerian System Operator (NSO) statistics showed that the grid was at 4,052mw yesterday when government commemorated the two years of the present administration. Link
- A Presidential Committee on Audit of Defence Equipment Procurement, to investigate procurement of arms, ammunition and other equipment for the Nigerian Armed Forces, for counter-insurgency operation in the North East, gulped N600 million before it was disbanded in February 2017. The committee, which was chaired by Air Vice Marshall John Ode, was set up on August 21, 2015, inaugurated in October 2015, on the orders of President Muhammadu Buhari, was mandated to, among other things, investigate arms procurement contracts in the office of the National Security Adviser (NSA), awarded between 2007 to 2015. Link
- Despite its crushing revenue challenges occasioned by dwindling oil sales, the Federal Government yesterday, said it added $500 million to the Sovereign Wealth Fund (SWF) and another $87 million into the Excess Crude Account (ECA) in the last two years. Acting President, Prof. Yemi Osinbajo, who stated this in his Democracy Day speech to commemorate the second year anniversary of the Buhari-led administration, said government has now taken seriously saving for the rainy day. Link
- The Economic and Financial Crimes Commission and the Association of Chief Audit Executives of Banks in Nigeria have agreed to strengthen collaborations in the fight against bank fraud. The ACAEBIN Chairman, Mr. Abiodun Aderoju, said that the fight against corruption by the President Muhammadu Buhari-led government would not be successful without the involvement and cooperation of the banks. Link
- The Dangote Group has disclosed plans to invest $1bn in rice cultivation in five states to boost food self-sufficiency in the country. Link
- No-Slips Limited has been appointed as the official Nigerian representative of Suresteps, a safety floor and bathtub treatment company based in Canada. Suresteps offers long-lasting chemical treatment that creates an invisible, sophisticated tread design into the surface of hard mineral floors and porcelain/enamel bathtubs. With this appointment, The Executive Chairman of No-Slips Limited, Mr. Charles Igbinidu said that the company has been given the sole right to market and deliver Surestep’s Non-slip products and services to her Nigerian clients. Link
- Shareholders of Wapic Insurance have approved the company’s plan to raise additional capital of N10bn or its equivalent in any foreign currency. Link
- First Bank of Nigeria Limited has been re-elected into the board of advisors of the Payment Card Industry Security Standards Council for the third consecutive time. The lender, in a statement, said the development was in line with its corporate governance and risk management stance. Link
- The possibility of establishing AMCON II to reduce the volume of non-performing loans in the banking industry is not in view, the Managing Director, Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, has said. He however said the advocates of the proposed debt body could start a private sector intervention. “AMCON II as an asset management is not possible anymore,” Kuru said. Link
- The National Insurance Commission has approved the 2016 audited financial statements of Staco Insurance Plc for publication. Link
- A Federal High Court sitting in Minna, Niger state is currently hearing a case of illegal installation of mast instituted by the office of the Attorney-General of the Federation against the telecom giant MTN Nigeria. The case was sequel to a petition by one Mohammed Nasir Usman of No.1 Ibrahim Kariya Avenue, Suleja alleging noise pollution from the mast installed by the MTN in the area. The case was adjourned to June 18 for further hearing by the presiding judge, Justice Yalim Suleiman Bogoro. Link
- Following the successful sale of its 60 percent equity stake of ExxonMobil in Mobil Oil Nigeria Plc (MON) to Nipco PLC, shareholders has called on the later to toe the path of the former and better drive more investment. According to them, “Mobile has maintained a standard over the years in its operations, as such, the momentum should be sustained and to be reflected on our dividends.” Link
- After months of repairs, Shell Petroleum Development Company (SPDC) has restarted the Trans-Forcados crude export pipeline with the completion of the loading of the first tanker – Astro Perseus, at the Forcados terminal. The Company is also planning to bypass the Trans-Forcados pipeline with the Amukpe-Escravos pipeline, which is scheduled for completion this year. Link
- The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian Liquefied Natural Gas (NLNG) Limited have signed a Service Level Agreement (SLA), committing to compliance with the provisions of the Nigerian Content Act and timely approvals of documents. Link
- Oando Plc has envisaged the reopening of the Forcados oilfield, which had held back Nigeria’s production potentials, in June. Oando chief Pade Durotoye told the Africa Independents Forum in London, that the long-closed Forcados oilfield could be back to capacity by the end of June, enabling a return to nearly full production from what is typically Africa’s largest oil exporter. Link
- Explaining why his administration has not made allocations since inception, barely two years ago, FCT Minister Muhammad Musa Bello revealed that he had to resolve about 500 pending land issues, even as he wondered why past governments could buckle under pressure to engage in multiple allocations that would end in series of litigations and hence be detrimental to the image and economy of the FCT Administration. Malam Bello stated this last week during a media briefing organized as part of events lined up to commemorate two years in office of the Federal Government under President Muhammadu Buhari. Link
- A former Attorney General of the Federation (AGF) and Minister of Justice, Mr. Mohammed Bello Adoke(SAN), has said his involvement in the $1.09b Malabu oil block deal was only that of a facilitator. He said he facilitated amicable settlement between two parties over a long-standing dispute because of the economic implications for the country. He said his role was “without any personal gain to me or to any other person”. Link
- The House of Representatives on Tuesday sought a compulsory review of the National Minimum Wage every five years. The proposal was contained in a bill to amend the National Minimum Wage Act, 2004, which passed second reading on the floor of the House in Abuja. The session was presided over by the Speaker, Mr. Yakubu Dogara. Link