All the major economic news in Nigeria in 5 minutes 22/6/2017

Summary of the top business, economic and political news in Nigeria today.

The Acting Chairman, Fiscal Responsibility Commission (FRC), Victor Muruako, has advised the Federal Government to set a debt limit for the three tiers of government to serve as guide for loan procurement. According to him, the Fiscal Responsibility Act (FRA) 2007 provides for the urgent need to set the debt limit of the three tiers of government. Link
Having missed the June 17, 2017 deadline for the entire Digital Switch Over (DSO) process, which commenced since 2006, the Director General of the National Broadcasting Commission (NBC), Mr. Ishaq Modibbo Kawu, has said that Nigeria needs as much as $1.4 billion to purchase Set-Top-Boxes (STBs), in order to achieve 95 per cent access to free digital television content across the country. Link
The Debt Management Office, DMO, yesterday, said that arrangement has been concluded for the issuance of the first N100bn sovereign sukuk, otherwise known as Islamic Bond or non-interest bond, next week, even as Dr. Abraham Nwankwo retires as the Director General of the Debt Management Office at the end of the month after completing 10 years of service. Link
A stakeholder in the maritime industry, Mr. Lucky Amiwero, has written to the Acting President, Prof. Yemi Osinbajo, requesting that waivers should be granted on goods whose owners are having difficulties accessing and exiting the Lagos ports owing to the bad condition of the access roads. Link
The National Pension Commission (PenCom) plans to embark on a nationwide pre-retirement enrolment exercise for retiring employees of Federal Government Treasury Funded Ministries, Departments and Agencies (MDAs) between July 3 and August 30. The Commission said the exercise is for the purpose of payment of retirement benefits, the Commission’s Head, Corporate Communications, Emeka Onuora explained in a statement. Link
The Federal Ministry of Health said, yesterday, that the continued existence of Health Management Organisations, HMOs, in the operation of the National Health Insurance Scheme, NHIS, was no longer necessary, following the mismanagement of funds paid to them for effective health delivery in Nigeria. Link
The Federal Government on Wednesday in Abuja announced that the Fund for Agricultural Finance in Nigeria, which was initiated by the Federal Ministry of Agriculture and Rural Development, was successfully closed at $65.9m. It said the fund would provide financial, capacity building and technical assistance to selected Small and Medium Enterprises in the agribusiness sector, adding that it was managed by Sahel Capital, a private equity firm. Link
The Oyo/ Osun Area Command of the Nigeria Customs Service (NCS) yesterday alerted Nigerians that poisonous and deadly bags of rice are being sold in the open market. The NCS said some unpatriotic elements conspired with some importers to smuggle the expired and deadly rice into the country via land borders. Link
Akinwunmi Ambode, governor of Lagos state on Tuesday signed an agreement with investors to generate 3,000 megawatts of power over the course of seven years. According to details of the agreement, Lagos state government will provide 3 months rolling bank guarantees to support the Power purchase Agreements (PPAs), which will be signed between the distribution companies and the embedded power providers (EPPs), to enhance bankability of the projects. Lagos state government will secure gas for the projects through provision guarantee to gas suppliers using its Ibile Oil & Gas company. Link
Nigeria has sold a five, 10- and 20-year debt at a flat rate of 16.19 percent at an auction on Wednesday to curtail borrowing cost as inflation declines, traders said on Thursday. Link
Researchers have predicted that at least 30 million people would live in Lagos by 2035, making it the largest mega city in Africa. According to a statement by the African Property Investment (API) in Abuja on Thursday, researchers also predicted that by 2030, Lagos, Cairo and Kinshasa would each have a population of 20 million. Link
Nigeria Union of Petroleum and Natural Gas Workers has expressed worry that the gridlock being experienced by petroleum tankers and articulated vehicles on Apapa-Wharf Road may result to fuel scarcity. Alhaji Tokunbo Korodo, the South-West Chairman of the union, on Thursday, said that since the inauguration of reconstruction of the road, petroleum tanker drivers had been on cue, finding it difficult to gain access to the tank farms to get products. Link
The Bureau of Public Enterprises (BPE) has given Lead Capital Consortium a 60-day deadline to conclude the strategic equity investment by the National Sovereign Investment Authority (NSIA) into the Nigeria Commodity Exchange (NCX). Link
A former Director of Food Concept Plc, Chief Dele Fajemirokun, has said he is no longer a director in the company. He explained that he had resigned from being a director in Food Concept some years back. He added that the clarification became necessary after a news report alleged that owners of Chicken Republic and some companies owed the United Bank of Africa Plc the sum of N9.3bn. Link
The Nigerian Breweries (NB) Plc has said that it was making plans to increase sourcing of raw materials like sorghum, Food Grade Starch and others locally from 57 to 60 per cent by 2020. Link
The Central Bank of Nigeria (CBN) yesterday directed the consortium of 13 banks involved in Etisalat Nigeria’s $1.2 billion loan to suspend further action on the indebtedness, including taking over ownership or management of the company. Link
The National Association of Microfinance Banks, Kwara State chapter, on Wednesday decried the recent closure of three microfinance banks in the state by officials of the Federal Inland Revenue Service. The Chairman of the association, Chief Joseph Adeyemi, at a media briefing in Ilorin, alleged that the agency had sealed Heritage Microfinance Bank Limited, Oro-Ago in Ifelodun Local Government Area of the state; Ours Microfinance Bank Limited in Ofa, Offa LGA; and Osi Microfinance Bank for some days. He claimed that the affected banks were not given notice of closure before the action was taken. Link
Etisalat has repaid 42 percent of the debt owed Nigerian banks and is not owing the humongous $1.2bn, as being reported in the media. The clarification was made by the troubled telecommunications company today. “As at today, we can categorically state that the outstanding loan sum to the consortium(of banks) stands at $227m and N113bn, a total of about $574m if the naira portion is converted to US Dollars. This, in essence, means almost half of the original loan of $1.2bn, has been repaid.” Link
Leadway Assurance Company Limited says it has paid N23bn claims in the 2016 financial period. Link
Transfast, a leading provider of cross-border payments and remittance solutions, says it is boosting its growth plans in Nigeria with the announcement of Ecobank Nigeria as its new partner in the country. Transfast, with presence in over 120 countries, said it partnered with Ecobank Nigeria to enable expatriates across the world to send money to Nigeria. Link
The Bank of Industry (BoI) has launched an interest-free loan for women artisans, market women and small holder farmers under the National Women Empowerment Fund (NAWEF) intervention scheme by the Federal Government. Link
The Nigerian National Petroleum Corporation, NNPC, said it has repaid its N450 billion indebtedness to the Federal Government. The NNPC in its April 2017 Monthly Financial and Operations Report, released yesterday, said the last tranche of the sum was paid in March 2017, after paying N6.33 billion on a monthly basis over several months. Link
The West Africa Pipeline Company Limited has said it is looking to capture new gas supply from Nigeria, with a focus on the Aje field offshore Lagos, as part of its key interventions to reposition the company for the dynamic market landscape. Link
The Ibadan Electricity Distribution Company has said it cannot supply electricity to Magboro, Ibafo, Mowe and other communities in Ogun State until a 33KV line awarded by the Niger Delta Power Holding Company Limited is successfully energised. Link
The monthly financial losses of the Nigerian National Petroleum Corporation since the beginning of this year continued in the month of April. Figures from the firm’s latest oil and gas report showed that the NNPC Group lost a total of N39.3bn between January and April 2017. The corporation’s deficit, which stood at N33.99bn in March 2017, increased by N5.3bn to close at N39.3bn in April. Link
Nestoil Limited says its headquarters, Nestoil Tower, has received an insignia of excellence from its designer, Lasvit (United Kingdom) Limited. Link
An Indonesian firm, PT Intim Perkasa Nigeria Limited, a subsidiary of PT Intim Perkasa, has indicated interest to build a refinery in Nigeria, the Nigerian National Petroleum Corporation has said. The NNPC said PT Intim’s interest in the country was in line with the Federal Government’s plan to attract investments in modular refineries, as part of efforts to boost the local refining capacity. Link
A manufacturing firm, Western Textile Mills, is in dispute with Ikeja Electric over the energy loss payment imposed on it by the electricity distribution company.Link
The Senate is working on a bill that will check the incessant increase in house rents in Abuja and other parts of Nigeria, the Senate Committee Chairman on Federal Capital Territory, Senator Dino Melaye, has said. He stated that the ‘Rent Edit’ bill would protect tenants and landlords even as he promised that lawmakers would ensure the passage of the bill before the end of the 8th Senate. Link

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