Summary of the top business, economic and political news in Nigeria today.
- The Federal Executive Council( FEC), yesterday, approved a new policy that bars foreign professionals from practicing in Nigeria unless they were registered and certified by all the necessary regulatory bodies. Link
- THE International Monetary Fund (IMF), yesterday, said Nigeria is expected to emerge from recession this year with an economic growth of 0.8 percent, but warned that threats to recovery remained elevated, and that the economy will not grow enough to reduce unemployment and poverty. The IMF, therefore, advised the Federal Government to pursue a policy of fiscal consolidation through higher non-oil revenues, to ensure stability in growth. Link
- The recent ambush on the oil exploration team in the North-East Nigeria by Boko Haram has put a damper on the nation’s drive to tap its highly under-explored inland basins, industry experts have said. Link
- The Federal Executive Council on Wednesday approved the inclusion of 27 enterprises to the list of pioneer industries and products that would enjoy pioneer status under the Industrial Development Income Tax Relief Act. The pioneer status incentive is a tax holiday given to companies for a period of time to encourage the growth and development of the Nigerian economy. A new company or an existing one with an expansion plan may apply for a certificate of pioneer status, which lasts for three years and is renewable upon application for two years. Link
- The Minister of Finance, Kemi Adeosun, said on Wednesday that the volume of trade between Nigeria and Singapore reached N846bn from 2011 to 2015 while the absolute balance of trade was N222 billion in favour of Nigeria. Link
- The Federal Government, yesterday, approved N39.17 billion for the supply of electricity meters to the Electricity Generation Companies, GENCOs. Minister of Power, Works and Housing, Mr Babatunde Fashola, disclosed this while briefing State House correspondents after the weekly Federal Executive Council, FEC, meeting at the Council Chamber l, Presidential Villa, Abuja. Link
- The Senate Joint Committee on Customs, Excise and Tariff, and Marine Transport, on Wednesday threatened to issue bench warrant against the Chief Executive Officer of Glo Mobile and other firms who failed to honour its invitation on alleged complicity in the N30tn revenue loss by Nigeria. Link
- From the beginning of 2017 to date, the Nigerian equities market has appreciated by 37.32 per cent. The bourse closed up for the second day running as the Nigerian Stock Exchange All-Share Index advanced by 0.50 per cent, bringing the year-to-date return to 37.32 per cent. Link
- The Executive Secretary, Nigerian Shippers’ Council, Mr. Hassan Bello, has advised exporters to register with the Cargo Defence Fund, an advocacy platform, established by the council to aid exporters and importers with legal services in the course of their business. Link
- Stakeholders in the maritime sector have recommended urgent upgrade of the industry’s infrastructure to make it more productive. They spoke separately during the 2017 African Day of Seas and Oceans in Lagos. The Managing Director, Nigerian Waterways Authority, Mr. Boss Mustapha, in his presentation drew attention to the condition of Nigerian roads, saying that many of them had become too weak to carry the weight of trucks and other articulated vehicles plying them. Link
- Transactions on the Nigerian Stock Exchange (NSE) on Wednesday maintained the upbeat trend with the All-Share Index rising by 0.50%. The index which opened at 36,720.62, appreciated by 184.44 points or 0.50 % to close at 36,905.06. Link
- An analysis by FBNQuest has revealed that the net foreign Currency (fx) flows through the Central Bank of Nigeria (CBN) were negative by US$760m in May but positive over the 12-month period to the tune of US$5.12bn. Link
- Siemens has announced the addition of a new solution, SGT-A45 TR mobile unit, to its gas turbine portfolio to address the growing market for power generation. The company said in a statement that the aero derivative gas turbine was packaged for rapid deployment and could be installed in less than two weeks, with an electrical generating capacity of up to 44 megawatts. Link
- Total Plc. has highlighted the importance of better access to energy to the growth and development of individuals and societies. The company said more than 10 million people from around the world had so far benefitted from its recently introduced solar lamps. Link
- MTN Group, Africa’s biggest mobile phone operator, says it has moved away from a turbulent 2016 that highlighted the risks of the company’s emerging markets strategy to a profit-making firm. MTN said on Thursday in Johannesburg that its earnings for first-half of the year had rebounded. It said that its headline earnings came in at 3.9 billion rand ($294.40m, or 212 cents per share, in the six months to end June compared with a loss of 4.9 billion rand, or 271 cents per share, a year earlier. Link
- Konica Minolta, manufacturers of Konica Minolta office documentation and print production machines, and its partner and sole distributor in Nigeria and Ghana, Skysat Technologies, has formerly introduced a highly efficient and productive digital printing machine, the Accurio Press C2070, into the Nigerian market as a successor to the highly functional BizHub Press C1070. Link
- Telecommunications Company, 9mobile, in partnership with the Enterprise Development Centre of the Pan Atlantic University has bolstered the growth of local small and medium scale enterprises (SMEs) by hosting budding entrepreneurs in Abuja and adjoining states at the 17th edition of the company’s Market Access Forum. Link
- Britain’s Unilever will subscribe to a N58.85bn ($162m) share sale by its Nigerian unit in cash and will not convert a shareholder loan to equity for the rights issue, Unilever Nigeria Plc said on Wednesday. Link
- Oriental Energy Resources Limited has performed the ground-breaking for the construction of a N700 million ultra-modern residential estate of 100 units in Enwang, Mbo Local Government Area of Akwa Ibom State. Link
- The African operations of Indian telecommunications giant, Bharti Airtel, has fetched it about $52million profit in quarter one (Q1), against $78million losses a year ago. The rise in profit has been helped by the growth in data customers and consumption. Link
- Releaf, a Nigerian-American based organisation has secured a $120,000 investment from Y Combinator, the world’s leading early startup investor, to upscale its solution in Nigeria. Link
- The Group Executive Chairman of Jagal, Mr. Anwar Jarmakani, has been honoured with the Business Legacy Award by the Lagos Chamber of Commerce and Industry in recognition of his contributions to nation building and socio-economic development. Link
- The National Inland Waterways Authority (NIWA), yesterday told boat operators, dredgers and other stakeholders operating on the waterways in Lagos to ignore the recent ultimatum slammed on them by the Lagos State government. Link
- The Manufacturers Association of Nigeria has said it will partner ASB Valiant Company Limited to develop a 30-megawatts independent power plant to provide electricity to its member companies. The plant, which will be located along the Lagos-Ibadan Expressway, is expected to supply power to MAN members and industries on the Makun corridor. Link
- The Association of Nigerian Electricity Distributors (ANED), the Economic and Financial Crimes Commission (EFFC), the Police and other security agencies, are collaborating to rid the power sector of corrupt officials, it was learnt. Link
- The Nigerian National Petroleum Corporation (NNPC), yesterday, said the West African Gas Pipeline, WAGP, would be extended from Ghana to Cote d’Ivoire. According to a statement by the NNPC, the planned extension of the pipeline was part of the Federal Government’s West African energy integration policy. Link
- Manufacturers Association of Nigeria (MAN), has called on the federal government to put in place energy-saving policy to compel consumption of compact fluorescent lamp, CFL, saying this can generate savings of $49 million (about N18 billion) annually for the economy. Popularly known as energy-saving bulb, CFL is a fluorescent lamp designed to replace the incandescent lamp; it fits into light fixtures normally used for incandescent lamps. Link
- The Bank of Agriculture (BoA) says it is targeting about 15 million smallholder rice farmers in the next two years, the bank’s Managing Director, Kabir Adamu, has said. Speaking while playing host to the Director General of National Orientation Agency (NOA), Dr. Garba Abari, during a working visit to BoA headquarters in Abuja, Adamu disclosed that the bank was partnering relevant agencies to open branches in all local government areas of the federation to enable it meet the target. Link
- Foreign airlines have $175million ticket sales proceeds trapped in Nigeia, the International Air Transport Association (IATA) said yesterday. But the organisation applauded the Central Bank of Nigeria (CBN) for reducing the debt, which could not be paid due to the dearth of foreign exchange, from $600 million in June 2017 to $175m this year. Link
- The House of Representatives recently mandated its committee on Petroleum Resources (Downstream) to investigate allegations of the disappearance of N11 billion worth of petroleum products belonging to the Nigerian National Petroleum Corporation (NNPC), following the adoption of a motion titled: “Need to Investigate the Disappearance of Eleven billion Naira worth of Petroleum Products belonging to the Nigerian National Petroleum Corporation (NNPC)”, sponsored by Tajudeen Yusuf. Link
- The Budget Office of the Federation yesterday commenced training for 4,250 workers of over 800 Ministries, Departments and Agencies (MDAs) on how to prepare budgets electronically using the online Government Integrated Financial Management Information System (GIMFIS). Link
- The Federal Government has commenced consultations with stakeholders in the oil and gas sector, aimed at re-activating Shell Nigeria Exploration and Production Company Limited (SNEPCO), the Bonga oilfield. Link
- Barring unforeseen circumstances, stockbrokers in Nigeria may soon have the flexibility of trading in the United Kingdom, and many other countries following the special training being organised by the Chartered Institute of Stockbrokers (CIS), in collaboration with the Chartered Institute of Securities and Investment (CISI), in the United Kingdom. Link
- The Federal Government has listed roads and bridges captured for construction as contained in the 2017 Budget. The Minister of Power, Works and Housing, Babantunde Fashola, in a statement, reiterated that the intention is to connect states, drive economy, move fuel, food and import and export of goods. Link
- The Nigeria National Petroleum Corporation (NNPC) and local arms of Chevron and Shell have signed alternative financing deals for key projects expected to boost Nigeria’s oil and gas reserves, improve power supply as well as support government’s effort to cut gas flaring. Link
- The Lagos State government has paid N515 million to 252 pensioners just as it advised retirees not to put their retirement fund into ventures that they could not manage. Governor Akinwunmi Ambode, who was represented by the Commissioner for Establishments, Training and Pensions, Akintola Benson at the 41st Retirement Bond Certificate Presentation Ceremony in Lagos, said the continuous payment of retiree’s entitlements was to ensure that they do not live in poverty. Link
- Following indiscriminate dumping of refuse across the state, Lagos State Governor, Akinwunmi Ambode has directed the new 57 council chairmen to embark on daily evacuation of waste in their locality, pending official kick off of Cleaner Lagos Initiative, CLI, next month. Link
- From today, bus conductors in Lagos will start wearing uniform as part of efforts to promote the Smart City Initiatives, SCI, of the state government. Link
- Lagos state governor, Mr. Akinwunmi Ambode, on Wednesday said that work on the proposed expansion and reconstruction of the Oshodi-International Airport Road would commence next month. Link
- Lagos State government has commenced moves aimed at harmonising collection of taxes, levies and fees by all revenue generation agencies at both the state and local government levels. This came just as stakeholders in table water production in the state assured the state government of generating N1billion revenue annually from water vendors if a well harmonised tax system is put in place. Link
- The Federal Executive Council (FEC) yesterday approved N20.6 billion for road contracts in Plateau and Kwara states. Minister of Power, Works and Housing Babatunde Fashola briefed State House correspondents at the end of the FEC meeting chaired by Acting President Yemi Osinbajo at the Presidential Villa, Abuja. Link
- The National Identity Management Commission (NIMC) has said that minors cannot obtain the National Identification Cards (NIC), until they are 16 years.Link
FCT Fuel scarcity: Why the queues have returned
There have been reports of long queues in the FCT, leading to major traffic jams in some parts of the city.
On Monday, 19th of April, 2021, the NNPC GMD, Mele Kyari assured Nigerians that there would be no increase in the ex-depot price of Premium Motor Spirit, popularly known as Petrol in May. Kyari also added that Petroleum Tanker Drivers had suspended their proposed strike after the intervention of NNPC in the impasse between the PTD and the National Association of Road Transport Owners.
“We have given our commitment to both NARTO and PTD that we will resolve the underlining issue between them and come back to the table within a week so that we’ll have a total closure of the dispute,” he said.
However, in the Federal Capital Territory, it was a different story, because the intervention of the NNPC on the proposed strike may have come a little late. Starting on Monday evening, there were reports of long queues in the city, which continued even up to Tuesday afternoon, leading to major traffic in some parts of the city.
At around 2 pm on Tuesday, a trip to fuel stations in the Karu-Jikwoyi area and some other parts of the FCT revealed queues of varying lengths. Fuel stations in the city centres had noticeably long queues as consumers struggled to fill up vehicle tanks and kegs.
A driver, Agbor, spoke to Nairametrics on his ordeal in trying to get petrol.
“I heard the queue was not as bad here as it was in town, so I rushed down to this queue at O-Max but the attendants said they don’t have much fuel for now, and are rationing how much they sell. I had no choice but to buy 10 litres of black market fuel at N4,000.”
At some stations including NNPC filling stations, long queues extended into nearby streets and although vehicular movements were being controlled to provide some semblance of order, the gates were shut in many to prevent mayhem.
The severity of the situation was also quite pronounced at Asokoro. There were long queues at the MRS filling station at AYA junction and A. A Rano station among others. The entry and exit gates were completely shut in many instances with teeming consumers struggling to gain entry. A petrol attendant who asked not to be named told Nairametrics that the situation is temporary and blamed the proposed strike for the inconvenience.
The scarcity situation was not different in Area 11, Garki. The main Total filling station was blocked on all sides and petrol was not being sold from the pumps at press time. The queues had also extended from the station to NNPC HQ. At Conoil, the situation was not much different and as of 2 pm yesterday, fuel was not being sold at the station.
In response to the situation, the federal government, on Tuesday afternoon, gave an update on fixing the fuel scarcity situation as NNPC GMD, Mr Mele Kyari told reporters that fuel loading had commenced in all depots and tankers would soon arrive at various parts of the city to end the scarcity situation.
“These queues will go away. It’s because there was an industrial action by petroleum tanker drivers against their employers, the National Association of Road Transport Owners, around their compensation package.
And those issues were not resolved up till yesterday, until we intervened to ensure that there’s an amicable settlement between the parties so that they will have peace and then normal loading operations will commence from the depots.
As I speak to you at this moment, loading has commenced in all depots in the country, dispatches of trucks are ongoing in all the depots in the country and they have called off the strike for a period of one week to enable us intervene and find a solution.” he said.
Why some real estate companies are at risk of bankruptcy
Many real estate companies affected by the pandemic have folded up, as housing subscribers were finding it difficult to service their mortgage payments.
No doubt, these are trying times for different sectors across the Nigerian economy and the nation’s real estate segment is not insulated from the aftereffects of the COVID-19 pandemic.
Some operators and stakeholders have expressed their fears that if the Federal Government does not intervene, more real estate companies may be forced to shut their operations.
Why firms may fold up – Experts
The experts have lamented that despite the challenges facing the real estate sector, especially with the pandemic, the Federal Government has not paid due attention to the sector.
The Managing Director, Infinity Trust Mortgage Bank Plc, Dr Olabanjo Obaleye, explained that the government is yet to provide financial succour and other structural support to mortgage banks and the housing sector, even in the heat of the pandemic.
According to him, the government appeared to be only concerned with raising taxes to boost revenue but has not provided the required succour to cushion the impact of the pandemic on businesses in the country.
During an Earnings Conference Call, he said, “Many companies affected by the pandemic had folded up, as housing subscribers were finding it difficult to service their mortgage payment. There are two companies that have just collapsed due to the inability of their owners to get foreign exchange for the importation of raw materials.
On the level of government support on COVID-19, there is nothing visible we have seen. We have read so many pronouncements on that from the government but we haven’t got any palliative in that respect. We have made proposals to government through our relevant authority but there is a need for certain funds to be set aside for this.”
A real estate practitioner and also the Vice President, Lagos Chamber of Commerce and Industry, (LCCI) Gbenga Ismail, explained that the impact of COVID in real estate would be felt by stakeholders and property owners because of the tenancy/rent structure of the sector.
Unlike what is obtainable in other climes like the United Kingdom (UK) and the United States of America where rents are renewed on a monthly or quarterly basis, Nigerians will feel the pressure now, as rents are paid in one or two years advance.
According to Ismail, who spoke in an interview monitored by Nairametrics, most people that have either lost their jobs or whose salaries are slashed will feel the effect more now compared to last year.
He said: “Now, people won’t be able to pay rents or buy houses as planned. We are not sure of where the monetary issues are going now and not sure if lending will continue into the real estate sector. We are yet to see some of these things going on.
“Even in inventories, where developers have put houses out for rent, the concern is who is going to rent them? Before COVID-19, we wait 6 months before houses get rented or leased but now it may not be less than 12 months.”
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- 2020 FY Results: Guinea Insurance Plc reports a loss of N227.7 million.
- 2020 FY Results: Unity Bank Plc posts profit after tax of N2.09 billion.
- Guinea Insurance Plc reports a loss of N142.13 million in 9M 2020.
- Unilever Nigeria Plc set to hold Annual General Meeting on 6th of May.
- UBA Plc posts profit after tax of N38.16 billion in Q1 2021.