The Nigerian National Petroleum Corporation and its partners in the oil and gas sector is set to donate the sum of N11 billion to curb the coronavirus pandemic and reduce its effects on the Nigerian economy.
This was disclosed by NNPC’s Group Managing Director, Mele Kyari, via a tweet when he announced the intervention fund on behalf of the oil firm and its partners. The NNPC boss explained that the initiative was in line with the Federal Government’s ongoing efforts to curb the spread of the dreaded virus in the country.
Details: Kyari stated that the intervention was aimed at supporting the country’s healthcare delivery facilities and would cover three major areas. He outlined the areas as provision of medical consumables; deployment of logistics/in-patient support system and delivery of medical infrastructure. He said,
“The three thematic support initiatives amount to a total of $30m (N11bn) and will be delivered in phases, starting today.
“To address the increasing demand of medical services, we are immediately providing medical consumables covering testing kits, medical protective suits and ambulances to the highly impacted areas across the federation.”
READ MORE: Godwin Emefiele’s God Complex
NNPC’s partners: Other industry players that partnered the NNPC to make the intervention are the Niger Delta Petroleum Resources Ltd, Oando Oil Limited, Oriental Energy Resources Ltd, Pilar Oil Limited, Platform Petroleum Limited, Seplat Petroleum Development Company Plc and Shoreline Natural Resources.
The national oil firm also listed Suntrust Oil Company Nigeria Limited, Vertex Energy Limited, Waltersmith Petroleum Oil Limited and Yinka Folawiyo Petroleum Limited, among others.
UPSTREAM OIL & GAS INDUSTRY INTERVENTION INITIATIVE ON #COVID-19: THE OFFICIAL PRESS STATEMENT 👇👇👇@Shell_Nigeria@ExxonMobil_NG @TOTALNigeria@Chevron @eni @aiteogrp @erotonep @Oando_PLC pic.twitter.com/IMf0LjtW42
— NNPC Group (@NNPCgroup) March 27, 2020
Consumers overall confidence index dipped by 25.0% Y-o-Y- CBN
According to the latest Consumer Expectations Survey Report for Q3, 2020, consumers’ overall confidence index dipped to -21.2 points.
The consumers’ overall confidence index dipped to -21.2 points as at the third quarters of 2020(Q3,2020), down by 25.0%, from 3.8 points it recorded in the corresponding period last year. This is according to the latest Consumer Expectations Survey Report for Q3, 2020
What this means: The slip in outlook indicates that consumers were pessimistic in their outlook for Q3 2020. Respondents attributed this unfavourable outlook to declining economic conditions, family financial situation and declining family income.
The consumers were however optimistic in their outlook for the next quarter and next 12 months with indices of 10.1 and 30.5 points, respectively. This positive outlook could be attributed to the expected increase in net household income, an anticipated improvement in Nigeria’s economic conditions and expectations to save a bit and/or have plenty over savings in the next quarter and the next 12 months
Why this matter: The pandemic negatively impacted consumers’ income and businesses. Hence, the CBN wanted to gauge the impact of this pandemic on their confidence and outlook, both in the past and going forward, through their quarterly survey.
Other Key Highlights:
- The unemployment index for the next 12 months remained positive at 35.4 points in Q3 2020, indicating that consumers generally expect the unemployment rate to rise in the next one year.
- With indices of 20.8 and 5.3 points, consumers expect the borrowing rate to rise and anticipate the naira to appreciate in the next 12 months.
- Overall buying intention index in the next twelve months stood at 29.7 index points, indicating that most consumers do not intend to buy big-ticket items in the next 12 months. The buying intention indices for consumer durables, motor vehicles and house & lot were below 50 points, which shows that respondents have no plans to make these purchases in the next twelve months.
What you should know
The Overall consumer confidence index is computed as the average of the three indices, namely: Economic Condition, Family Financial Situation and Family Income.
a. Economic Condition refers to the perception of the respondent regarding the general economic condition of the country.
b. Family Financial Situation refers to the level of savings, investments, other assets including cash at hand and outstanding debts.
c. Family Income includes primary income and receipts from other sources received by all family members as participants in any economic activity or as recipients of transfers, pensions, grants, and the like
Power: Nigeria records transmission peak of 5,459.50MW – TCN
TCN has announced that it hit a peak transmission of 5,459.50MW on the 28th, October 2020.
The Transmission Company of Nigeria (TCN) announced that it hit a peak transmission of 5,459.50MW on the 28th, October 2020.
This was disclosed on Thursday in a statement by Ms Ndidi Mbah, General Manager, Public Affairs, TCN.
Good Job from the Men and Women of the Transmission Company of Nigeria and everyone within the Power Sector.
— Engr. Sale Mamman (@EngrSMamman) October 29, 2020
She said Nigeria hit the milestone on October 28th and surpassed the earlier record of 5,420.30MW achieved on August 18.
What you should know
Nairametrics reported that the Minister of Power, Engineer Sale Mamman, disclosed that Nigeria’s installed grid power generation capacity has grown from 8,000MW to 13,000MW under the leadership of President Muhammadu Buhari.
“The new peak surpasses the 5,420.30MW achieved on Aug. 18 by 39.20MW,” Ms Mbah said.
The Acting Managing Director, Mr Sule Ahmed Abdulaziz, commended all the players in the power sector value chain for the feat.
He attributed the gradual but steady improvement in the quantum of power delivery to collaboration by the sector players, as well as, the unbridled effort by the Federal Government – through the Ministry of Power – in setting the right environment for seamless operations.
The Acting Managing Director said the company will continue workings towards improved power transmission across the nation.
Nairametrics reported in August that the Federal Government of Nigeria revealed that the Siemens $2 billion power deal, under the Presidential Power Initiative (PPI) will save the nation over $1 billion annually.
Structure of the PPI funding:
- 85% from a consortium of banks guaranteed by the German government through credit insurance firm, Euler Hermes.
- 15% of the FG’s counterpart funding.
- 2–3 years moratorium.
- 10–12 years repayment at concessionary interest rates.
CBN grants Mortgage Refinancing Companies approval to refinance Non-member banks
The CBN has expanded access to mortgage financing by removing restrictions on refinancing mortgages earlier imposed.
The Central Bank of Nigeria (CBN), has granted approval to Mortgage Refinancing Companies (MRC), to re-finance non-member banks.
This is contained in a circular referenced FPR/DIR/GEN/CIR/07/056 and signed by Ibrahim Tukur, the Director of Financial Policy and Regulation Department, CBN.
The circular improved on the earlier provisions contained in section 184.108.40.206 which states that “A mortgage refinance company (MRC) shall not, without the prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than twenty times the value of the borrower’s shares with the MRC or 25 percent of its shareholders’ funds unimpaired by losses.”
What this means
Based on the provisions contained in the latest circular, MRCs are now free and legally permitted to refinance the qualifying mortgages of banks and all other non-members ( that do not hold equity), subject to meeting all other relevant requirements specified in the framework.
In a nutshell, the restriction on non-member mortgage lenders from refinancing their mortgages with MRCs has been removed.
Why this matters
Prior to the provisions contained in the latest circular, CBN had expressed fears that provisions of section 220.127.116.11 negatively impacts the mortgages sub-sector, as it constrains the MRCS from refinancing the mortgages of non-shareholder banks. Therefore, the new order will help to remove the restrictions already highlighted.
In lieu of this, the latest circular stated that the provision of section 7.3.1 5 is hereby revised to “the MRC shall not, without prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than 25 percent of its shareholders’ funds unimpaired by losses,” the circular reads.