Business News
Markets tank as President Buhari announces intention to run for a second term
Perhaps in response to President Muhammadu Buhari declaring his intentions to run for a second term, Nigeria’s financial markets all reacted negatively.
The Nigerian Stock Exchange (NSE) All-Share Index closed at 40, 429.18 basis points, down 1.01%. Year to date gains have since dropped to 5.72%.
Bashir Ahmad, Special Assistant to the President on New Media, broke the news on his twitter handle.
BREAKING: President Muhammadu Buhari has just officially announced his intention to seek re-election in 2019. Details soon…
— Bashir Ahmad (@BashirAhmaad) April 9, 2018
Possible Market reaction?
Nairametrics Founder, @Ugodre tweeted a snapshot of the market chart at the end of trading on Monday.
Looks like Market tanked just after Buhari announced he will run for a second term. 😳😳 pic.twitter.com/tuKcY8q7YC
— Ugodre (@ugodre) April 9, 2018
Yields rose marginally on long-dated bonds, while they dropped on treasury bills. Investors usually pile into bonds during times of uncertainty.
The down markets may not necessarily be a reflection of negative sentiments to the President’s candidature but the heightened uncertainty. The President’s declaration in some ways would be the unofficial start of the campaign period. Governance could also take a back seat. The National Assembly is yet to pass the 2018 budget into law.
Approaching elections could also increase socio-political tensions in the Niger Delta which has been largely peaceful.
In the coming days
Investors should pay closer attention to the Investors and exporters window. Heavy traffic there could indicate foreign investors are taking their leave from the country. This could precipitate pressure on the foreign exchange rate.
Business
Just in: Fuel scarcity looms as NUPENG directs Tanker drivers to withdraw services in Lagos
This was disclosed in a press statement by NUPENG on Friday, August 7, 2020.
The scarcity of petroleum products appears to be looming in Lagos as the leadership of Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) has directed its members to withdraw its services in Lagos with effect from Monday, August 10, 2020.
This is due to the failure of government authorities to address the various issues that have been causing serious pains and harrowing experience on the petroleum tanker drivers in the state for several months now.
This was disclosed in a press statement by NUPENG on Friday, August 7, 2020.
NUPENG LEADERSHIP DIRECTS WITHDRAWAL OF SERVICES BY PETROLEUM TANKER DRIVERS IN LAGOS STATE WITH EFFECT FROM MONDAY, AUGUST 10, 2020
Read more:https://t.co/TV5sFoBOcO@followlasg#Lagos pic.twitter.com/tAuOpsMc3a— NIGERIA UNION OF PETROLEUM AND NATURAL GAS WORKERS (@officialNUPENG9) August 7, 2020
Details shortly…
Business
President Buhari signs amended Companies Allied Matters bill
The President’s action on the document repealed and replaced the extant Companies and Allied Matters Act, 1990.
President Muhammadu Buhari has assented to the Companies and Allied Matters Bill 2020, which was recently passed by the National Assembly.
This was disclosed in a statement signed by a media aide of President Buhari, Femi Adesina and shared by the Personal Assistant to the President, Bashir Ahmad, via his Twitter handle.
According to the statement, the President’s action on the document repealed and replaced the extant Companies and Allied Matters Act, 1990, and introduced several corporate legal innovations geared toward enhancing ease of doing business in the country.
After 30 years; President @MBuhari today, assented to the Companies and Allied Matters Bill, 2020 recently passed by the National Assembly. pic.twitter.com/8yZNqeqNPV
— Bashir Ahmad (@BashirAhmaad) August 7, 2020
Key innovations in the new Act:
* Filing fee reductions and other reforms to make it easier and cheaper for small and medium-sized enterprises to register and reform their businesses in Nigeria;
* Allowing corporate promoters of companies to establish private companies with a single member or shareholder, and creating limited liability partnerships and limited partnerships to give investors and business people alternative forms of carrying out their business in an efficient and flexible way;
* Innovating processes and procedures to ease the operations of companies, such as introducing Statements of Compliance; replacing “authorised share capital” with minimum share capital to reduce costs of incorporating companies; and providing for electronic filing, electronic share transfers, e-meetings as well as remote general meetings for private companies in response to the disruptions to close contact physical meetings due to the COVID-19 pandemic;
* Requiring the disclosure of persons with significant control of companies in a register of beneficial owners to enhance corporate accountability and transparency; and
* Enhancing the minority shareholder protection and engagement; introducing enhanced business rescue reforms for insolvent companies; and permitting the merger of Incorporated Trustees for associations that share similar aims and objectives.
Energy
NNPC signs agreement with CNOOC, SAPETRO to end OML 130 disputes
The agreement is expected to help resolve disputes stemming from Oil Mining Lease (OML).
The Nigerian National Petroleum Corporation (NNPC), said it has signed a Head of terms (HoT) agreement with China National Offshore Oil Corporation(CNOOC) and an indigenous oil production firm —South Atlantic Petroleum (SAPETRO).
A statement that was issued by the state-owned oil company via Twitter, yesterday, noted that this is part of the efforts that have been undertaken towards resolving all the disputes stemming from Oil Mining Lease (OML) 130 Production Sharing Contract.
READ ALSO: NNPC spends N535.9 billion on subsidy, FAAC in Q1 2020
📸 NEWS:
Today,@NNPCgroup signed a Head of Terms (HoT)with its partners CNOOC & SAPETRO,signifying a major milestone towards the resolution of all disputes related to Oil Mining Lease (OML)130 Production Sharing Contract.OML 130 consists of producing fields such as Akpo & Egina pic.twitter.com/VnLga9qmm9
— NNPC Group (@NNPCgroup) August 6, 2020
Nairametrics understands that the agreement, which is temporary, could also be instrumental towards resolving similar disputes between the NNPC and other oil companies. The NNPC had previously accused some of these oil firms of under-declaring crude exports for three years between 2011 and 2013.
READ ALSO: NNPC cultivates 2,675 hectares of cassava for Ethanol production
Specifically, the NNPC alleged that the likes of Shell, Total, Chevron, and Eni under-reported crude oil exports in their oil fields to the tune of 57 million barrels. The NNPC even sought repayments valued at $12.7 billion from the oil companies, according to a suit filed before the Federal High Court in Lagos. The companies denied the accusations.
The new agreement is now expected to help resolve such disputes. Even the NNPC’s Group Managing Director, Mele Kyari. was quoted to have said the agreement is “a major milestone toward the resolution of all disputes.”
GTBANK, GUINNESS, OKOMUOIL trigger bulls, as ASI gains 0.19%
Just in: Fuel scarcity looms as NUPENG directs Tanker drivers to withdraw services in Lagos
President Buhari signs amended Companies Allied Matters bill
NNPC signs agreement with CNOOC, SAPETRO to end OML 130 disputes
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Vicky
April 11, 2018 at 1:12 am
This is one reason I hate Nairametrics, you guys just write useless headline or news. This is journalism at it’s worst. What is the meaning of “The market tanked because President Buhari announced his intentions to run for second term”. Was it the President that made Lafarge declare a horrible result where its preys declared fantastic results. What was your headline when the Nigerian stock market was celebrated earlier this year, I bet you won’t have given him credit.
Abeg you guys can do better.
Toju Daniels
April 11, 2018 at 1:56 pm
Your point doesn’t take away the fact that the market tanked +/- 2 hours after PMBs announcement.