All the major economic news from Nigeria in 5 minutes – 12/7/2017

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

1. The Federal Government on Tuesday, disclosed that the current  economic recession  will end in 18 months. To achieve this, it  has called on the private sector to partner with it. This was as it disclosed  that  the 2018 budget will be ready in October this year. Link
2. There is something to cheer for bank customers travelling abroad. Commercial banks have raised customers’ international dollar spending limit on overseas Point of Sale (PoS) and online card transactions by 900 per cent, it was learnt yesterday. Link
3. Minister of Agriculture and Rural Development, Chief Audu Ogbeh, has said that the country will be self sufficient in rice production by November, which he said will force a reduction in the price of the commodity. Link
4. The Federal Executive Council, FEC, has approved N2.7 trillion for payment of the federal government’s discounted obligations. The money consists of N740 billion of outstanding pensions and promotional salary arrears (not discounted) and N1.93 trillion (discounted) of other obligations including dues to federal government contractors and suppliers. Link
5. Power generation companies in the country have insisted that the Federal Government must increase electricity tariff. Link
6. The Federal Government on Tuesday announced plans to establish truck transit parks in five states so as to decongest the two major seaports located in Lagos and Port Harcourt. The Minister of Transportation, Rotimi Amaechi noted that the five truck transit parks would be established in Kogi, Kwara, Ogun, Enugu and Lagos states. Link
7. Nigeria plans to issue 204.95 billion naira ($651.7 mln) in treasury bills at an auction on July 19, the central bank said. The bank aims to raise 36.78 billion naira in three-month bills, 39.17 billion naira in six-month paper and 129 billion naira in one-year bills. Link
8. Despite several efforts by the Federal Government to cushion the effects of recession on the economy, recent figures from the Manufacturers Association of Nigeria (MAN) have shown that about 196 manufacturing companies shut down their operations in the last two years due to the biting recession. This represents over 300 per cent increase compared to 45 companies  reported to have closed down last year in the first year of the present administration. Link
9. The Debt Management Office is planning to use $483.4m to service the country’s foreign loans over a 10-year period and make repayments starting from next year as the country’s dollar debts begin to mature. According to the DMO annual report, the agency projects debt service repayments to amount to a total of $4.47bn to be made in 2018, 2021 and 2023. Link
10. The National Insurance Commission has said that it will tackle the issue of rate-cutting on insurance premiums by operators in the industry and apply appropriate sanctions on perpetrators of the act. Link
11. The Central Bank of Nigeria (CBN) has said that hawking, mutilation and spraying of naira notes at parties constitute an affront to the nation. CBN’s acting Director, Corporate Communications, Mr Isaac Okorafor, said that under no circumstance should the naira be squeezed or reduced to a piece of paper for writing or jotting. Link
12. At least N5 billion was lost by stakeholders to yesterday’s shut down of port operations across the country by aggrieved ports’ workers, led by officials of Maritime Workers Union of Nigeria, MWUN, and Senior Staff Association of Communication, Transportation and Corporation, SSACTAC, Maritime branch. The shut-down was a protest against moves by National Assembly to repeal the NPA Act, which the workers described as anti-Nigeria.  Investigations revealed that Nigeria Customs Service, NCS, alone lost over N2 billion to the disruption, while NPA, Nigerian Maritime Administration and Safety Agency, NIMASA, importers, and other operators in the ports were estimated to have lost between N2.5 billion and N3 billion. Link
13. A modern contraceptive rate of 27 per cent among all women by 2017 has been announced just as Nigeria pledges additional $4.3 million for procurement of contraceptives. Link
14. Rig owners in Nigeria have tasked the Federal Government to implement the alternative funding stream for joint venture operations it approved in November last year. Link
15. The Nigeria Customs Service, Tin-Can Island Command, Lagos, has generated N130 billion between January and June, 2017. The Public Relations Officer of the command, Mr Uche Ejesieme, said the command recorded N19.83 billion in January; N21 billion in February; N20.95 billion in March and N20.31 billion in April. He added that in May and June, the command collected N23.87 billion and N23.97 billion. Link
16. Nigeria’s Dangote Cement plans to invest about $4 billion in the next two to three years to nearly double its production capacity in Africa, a senior executive told Reuters on Tuesday. Link
17. British insurer Prudential said it had bought a majority stake in Nigeria’s Zenith Life to give it access to the African country’s fast-growing insurance market. It said it had also signed a deal with the Nigerian insurer’s parent Zenith Bank Plc to sell life and other insurance products via the bank in Nigeria and Ghana. Link
18. The management of NASD Securities Exchange has started moves to get Ashaka Cement Plc listed on its platform barely one week after the cement manufacturing firm was delisted from the Nigerian Stock Exchange (NSE). Link
19. Etisalat Nigeria on Monday said it had commenced the paperwork to raise fresh capital to bolster its operations. Link
20. The Bank of Industry (BOI) plans to inject N1trillion into the Nigerian economy through collaboration with financial institutions in the country and development institutions in Africa. The Managing Director of BOI, Mr. Olukayode Pitan said the synergy was to further deepen the bank’s involvement in the development of the economy as well as providing necessary impetus in revitalising key sectors that have been stressed by the global economic downslide. Link
21. Industrial And General Insurance Plc (IGI) has announced the appointment of a new management to be led by Bayo Folayan, who was named the Acting Managing Director. In a statement by the Head, Corporate Communication of the firm, Steve Ilo, the appointment is in line with the company’s restructuring programme aimed at repositioning it for optimum performance. Link
22. Diamond Bank Plc plans to sell some of its non-core assets as part of strategy to beef up its capital in the short to medium term. According to the bank’s Chief Executive Officer, Mr. Uzoma Dozie, the bank has adequate capital presently, and is not opening “new brick and mortar branches anymore which naturally requires deployment of capital.” Link
23. Ecobank, has been named Best Digital Bank in Africa at the Euromoney Awards for Excellence 2017 held at the Tower of London while Ecobank Ghana was recognized as the Best Bank in Ghana. Link
24. The Federal Mortgage Bank of Nigeria (FMBN) has said that out of its 1,027 housing units being constructed, 177 have been completed for workers in the FCT to access through the Federal Integrated Housing Scheme (FISH). Link
25. The Executive Director, Investments, Stanbic IBTC Pension Managers Ltd, Mr. Oladele Sotubo, on Wednesday said the company has paid the sum of N270bn to retirees since 2006 when it commenced operations. Link
26. Information obtained has indicated that Shell Nigeria, the operator of Bonny export terminal, has placed limits on the export of Bonny Light, Nigeria’s premium crude oil. A source close to the company and shipping schedule, has disclosed that the peg was due to the Trans Forcados pipeline which resumed exports last month after months of shutdown. Link
27. A group known as Movement For Relocation of ExxonMobil Headquarters to Akwa Ibom State has launched an online petition against ExxonMobil to relocate its headoffice to Akwa Ibom State. Link
28. Katsina State Government has spent N6 billion on flood control projects in 2017, the state Commissioner for Lands and Survey, Abubakar Ilu, said in Katsina on Wednesday. Link