All the major economic news from Nigeria in 5 minutes - 24/7/2017

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

The International Monetary Fund (IMF) projects that Nigeria’s economy will grow at a faster pace than the South African economy in the 2018 fiscal year. According to its World Economic Outlook (WEO) for July 2017, the IMF said Nigeria will grow at 1.9 percent in 2018, while South Africa will only climb by 1.2 percent. Link
Barring any last-minute change, electricity consumers in Nigeria are to pay between N2.89 and N7.45 per kilowatt hour (kwh) increase in the new cost reflective tariff slated for announcement before October. Investigations showed that the Nigerian Electricity Regulatory Commission (NERC), an agency in charge of the tariff, which completed receipts of complaints on the tariff review after expiration of 30-day window, is “awaiting final signal” from Presidency before it would announce the new tariff. Link
The Central Bank of Nigeria has offered six and 12-month Treasuries at yields higher than the country’s inflation rate to lure yield-hungry investors and attract dollar inflows. Link
The Director, Banking Supervision, CBN, AlhajiAhmad Abdullahi has disclosed that with less than six months to the implementation of the International Financial Reporting Standards 9 (IFRS-9) deadline, many banks are yet to meet up with the deadline given by the Central Bank of Nigeria (CBN) to move to the new financial reporting regime with effect from 1, January, 2018. Link
The British government has said it will invest in Nigeria’s oil pipeline infrastructure, renewable energy, as well as gas and power. The British High Commissioner to Nigeria, Mr. Paul Arkwright said Britain had genuine investment interests in the downstream, midstream and upstream sectors of the Nigerian oil and gas industry. Link
The Federal Government spent $25.82bn to service its debts between 2012 and 2016, the Debt Management Office has said. If converted to naira using the official rate of N305 to one dollar as of December 31, 2016, DMO said this amounted to N7.88tn. Link
The President of the African Development Bank, Dr Akinwumi Adesina, says the bank will invest $24bn in agriculture in Africa over the next 10 years. Link
The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, has said that high inflation rate and rising operating costs in the banking sector are some of the major reasons for the high interest rate in the country. Link
Lagos State Governor, Mr Akinwunmi Ambode on Monday said his administration has already embarked on reform aimed at generating 3000MW of power within the next few years, adding that the initiative, which is on course, would go a long way in scaling up the State’s economy and make life more comfortable for the people. Link
The Nigerian Export and Promotion Council (NEPC), has proposed to the Federal Government the approval of five billion naira to support industries in the country. Link
Lagos State governor, Akinwunmi Ambode disclosed that Six states of the South West are jointly working on an agricultural master plan to push their frontier in food supply in the country. The states include Oyo, Ogun, Osun, Ondo, Lagos, and Ekiti. “We have in the pipeline an agricultural summit that we are planning in conjunction with the entire south west states and the idea is for us to create a master plan that allows other States in the region to partner with us”. Link
Fitch Ratings has affirmed Lagos State’s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at ‘B+’ with Negative Outlook and Short-Term Foreign Currency IDR at ‘B’. Link
A Federal High Court in Lagos, on Thursday, granted an ex-parte application by the office of the Attorney General of the Federation (AGF) for an order directing the banks to remit the funds to the Federal Government. The office of the AGF, through its lawyer, Prof. Yemi Akinseye-George (SAN), accused seven banks of unlawfully withholding $793,200,000 (about N249,659,700,000.00) in breach of the Treasury Single Account (TSA) policy. The banks listed in the court documents filed by the office of the AGF are: United Bank for Africa (UBA), Diamond Bank Plc, Skye Bank Plc, First Bank Limited, Fidelity Bank Plc, Keystone Bank Limited and Sterling Bank Plc. Link
OPEC Secretary-General Mohammad Barkindo said on Monday Nigeria has no intention of going beyond its oil production target of 1.8 million barrels per day (bpd) until the end of March 2018. Link
In line with its quest for sustenance of its operations and to ensure its programmes reach more unemployed youths, the Lagos State Employment Trust Fund (LSETF), an initiative of the Lagos state government, has launched a funding partnership programme targetted at high net worth individuals, private organisations, donor agencies, non-governmental agencies, and international development organisations. The Fund, which already has N25 billion commitment from the Lagos state government, said in a statement at the weekend that it plans to double the figure through the funding partnership arrangement as it seeks to expand its operations to benefit more businesses and people in the state. Link
Kuwaiti Oil Minister Essam al-Marzouq said on Monday that Nigeria would voluntarily cap its oil output at 1.8 million barrels per day (bpd) once it reaches that level. Link
Efforts by the federal government to diversify the economy and generate foreign exchange from other sources might have started yielding the needed results as the trade statistics report by the National Bureau of Statistics (NBS), revealed that the exportation of agricultural goods grew by 82 per cent in the first quarter of 2017. The sectoral breakdown showed that proceeds from agricultural products stood at $340 million (N105.06 billion) in the first quarter of 2017, representing 39.5 per cent of total non-oil export proceeds. Food products, manufactured products and industrial goods counted for 10.8 per cent, 16.9 per cent and 10.9 per cent respectively. Link
As part of the backward integration policy of Prof. Ben Ayade’s administration, Cross River State Government is set to roll out 30 tonnes of cotton from its cotton farm by November this year. The cotton farm situated in Woda community, Yala Local Government Area of the state, is in partnership with Arewa Cottons. Link
Nigeria’s oil export may suffered a setback as India, the country’s biggest oil destination, has started buying crude from the United States as it looks to diversify its sources of the commodity. Link
Nigerians in the first six months of the year spent N40.607 trillion through the electronic platforms in the country, increasing electronic transactions by 100.5 per cent compared to the N20.245 trillion figure recorded as at March 2017. Link
Investigation has shown that Nigeria’s power Grid can now carry 6,200 megawatts as against 5000MW. A reliable source close to the situation, disclosed that the Grid has been misunderstood over the years by past administrators, who have said one of the problems of generation companies is because the grid can carry only 5,000 MW. Link
Ecobank has extended the capabilities of its Rapid Transfer product enabling all bank account holders in Nigeria receive money through the service instantly from 33 African countries where Ecobank operates. Link
Stability is fast returning to Skye Bank Plc, as it had recorded a N60 billion recovery from its bad loan books.It also achieved a N6.2 billion cash inflow from full divestment from four local subsidiaries, and currently in the process of divesting from others, as part of strategies to weed it of unprofitable ventures and streamline operations for sustainable growth. Link
Wapic Insurance Plc has said that it has introduced a savings product called Wapic Smart to help people achieve their financial goals. Link
Nigerian pasta maker Dufil Prima Food plans to raise 40 billion naira ($131 million) from the local debt market to broaden its funding base, it said on Monday. The company has appointed Stanbic IBTC Capital, the local unit of South Africa’s Standard Bank to arrange the debt. Link
President of Dangote group, Aliko Dangote is now moving into Dairy farming and production. The philanthropist who is already into rice, sugar and tomato farming is planning to develop dairy plants and develop home-grown milk production as he seeks more ways of ensuring Nigerians don’t go hungry as the population increases drastically. Link
Financial advisers, other parties to the N58.851 billion Rights Issue of Unilever Nigeria Plc and directors of the company have held a signing ceremony for a successful issue. This followed the receipt of clearance documents from the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) in respect of the Rights Issue. Unilever Nigeria wants to raise N58.851 billion by way of rights to existing shareholders on the basis of 14 new shares for every 27 shares held by shareholders at an issue price of N30 per share. Link
Visa, a global payments solution provider, in collaboration with some Nigerian banks, has launched mVisa, its innovative mobile payment service, in Nigeria. The solution is currently being rolled out across Africa. Link
The Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD) Dr. Maikanti Baru on Monday announced that the corporation could not sustain its last week record of 2.2million barrel per day (mbd) owing to the Monday attack on the Trans Niger Pipeline in Ogoniland which culminated in the loss of 150,000barrel. Link
The Kano Electricity Distribution Company said it has disconnected power supply to over 10,000 homes over N84m revenue loss due to illegal connections at Rijiyar Zaki area in the Kano metropolis. Link
The Managing Director of a real estate investment company, J. Missri and Company Limited, Nze Edozie Okafor, has called for the intervention of Governor Akinwumni Ambode over alleged unlawful acquisition of the company’s landed property at No. 23, Breadfruit Street, Lagos by the State Urban Renewal Agency (LASURA). Link
The Anambra State Head of Service (HoS), Mr Harry Udu, has said that the Contributory Pension Scheme (CPS) will commence in the state in 2018. Link
Nigerian Labour Congress says Kano state government owes over N11.2Billion of gratuity ,death benefit and pension arrears as at May 2017. Link

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