Business News
Uncertainty over Nigeria’s oil export plans for May and June
NNPC has deferred disclosing its future oil export plans, as it tries to keep up with its own share of the oil output cut
The Nigerian National Petroleum Corporation (NNPC) has deferred disclosing its future oil export plans, as it tries to keep up with its own share of the oil output cut from the deal involving OPEC+ and other top oil-producing countries.
According to Reuters, the delay is as a result of the on-going negotiation with indigenous oil companies and the international oil majors on how to apply the output cut, in line with the deal between OPEC+ and oil-producing countries.
A few weeks ago, as part of the measure to help stabilise the volatile oil market, OPEC+ had agreed to a 9.7 million barrels per day output cut. In line with that agreement, Nigeria’s share of the output cut is about 400,000 barrels per day.
READ MORE: Where next for oil prices?
The agreed output cut by OPEC+ and top oil producers are due to take effect from May 1, 2020, but the official selling prices (OSPs) for the Nigerian oil, which is usually issued in the second or third week of each month, has still not been issued.
As a result of the negative events in the oil market, traders expect the May OSPs to slump below April’s record low as published by NNPC.
On the uncertainty that hovers round the nation’s oil export plans for May and June, sources disclosed that the plans for June and OSP for May are yet to be disclosed because NNPC is working out the output cuts with the international oil companies.
READ ALSO: PIB and its unsurmountable obstacles
The uncertainty and volatility of the oil market have seen crude oil prices crash to unprecedented levels. As a result of very low oil demand and a supply glut, coupled with storage crisis, the Nigerian Bonny light crude was sold at a discount of about $5 as against the $3 premium it is usually sold during normal market conditions.
Business
CBN launches framework for advancing women’s financial inclusion in Nigeria
The CBN in collaboration with EFInA has launched a framework to advance women’s financial inclusion.
The Central Bank of Nigeria on September 29, 2020, virtually launched the framework of advancing women’s financial inclusion. This was disclosed in an online event tagged “Access to Finance Framework for Women” and anchored by Dr Paul Olukpe.
The framework was conceptualized by the Financial Inclusion Special Intervention Working group and developed by the CBN in collaboration with EFInA and Women’s World Banking with input from over 50 stakeholder institutions.
The overarching vision of the framework is for Nigeria to be globally recognized, with an inclusive financial sector that has closed the gender gap by 2024. The framework further itemizes 8 strategic imperatives for driving improved access to finance for women in Nigeria.
In the online event monitored by Nairametrics, the Deputy Governor, Financial System Stability of the Central Bank of Nigeria, Mrs. Aisha Ahmad justified the new initiative by citing EFInA’s last report on financial inclusion in 2018 as a yardstick.
(READ MORE: Banks’ loans to private sector increase by N3.50 trillion in one year – CBN)
Recall that EFInA 2018 Financial Inclusion report indicated gender imbalance and a clear need to attend to the issue of growing female financial exclusion. For example, the report stated that 40.9% of females were financially excluded as against 32.5% of males. Mrs. Ahmad remarked that perhaps, the figures might even be wider if unattended to especially in this period of crisis.
Mrs. Ahmad urged financial institutions to address structural issues limiting women’s access to finance by understanding and developing products that are specifically tailored to address such issues.
Why this matters
Empirical studies have shown that supporting a stronger role or empowering women is a key enabler in reducing poverty, stimulating economic growth and ensuring sustainable development. Citing ‘’The Power Parity Report by McKinsey’’, the Director of development finance department of CBN, Mr Yusuf Philip Yila, stated that the economic consequences of pursuing gender equality include a potential addition of $28trillion to global annual GDP by 2025.
This framework is a big boost to achieving SDG’s goal of gender equality and Nigeria’s financial inclusion targets simultaneously.
Business
HealthPlus crisis: Alta Semper directors reported to Police for trespassing
HealthPlus has made a formal complaint to the Police following its ensuing battle with Alta Semper.
Nigerian Pharmacy Chain, HealthPlus Ltd which is in a battle for control with private equity firm Alta Semper Capital took a new twist as Health plus reported Alta Semper directors to the police last week, as observed in a document seen by Nairametrics.
In a letter sent to the Assistant Inspector General of Police on the 25th of September, HealthPlus stated, “We had the presence of unknown persons around our head office locations.”
READ: FG apologizes, says Self-Certification directive is not for everyone
The locations stated were 4 HealthPlus branches in Lekki, Lagos.
HealthPlus stated further, “We are aware that there are unauthorized and illegal plans by certain persons to take over our company premises to steal sensitive company property and assets, and ultimately take over operations of the company”
The 4 persons mentioned by HealthPlus are; Zachary Fond and Ivan Genadiev (both Alta Semper Directors), Ernest Eguasa, CFO of company and an unidentified middle-aged white man.
Explore the Nairametrics Research Website for Economic and Financial Data
Niarametrics reported last week that HealthPlus Limited appointed Chidi Okoro as Chief Transformation Officer.
However, the announcement set off a chain of allegations and counter-accusations, including online media mudslinging with both sides trying to court public sympathy for who is in control of the company.
Economy & Politics
P&ID dispute: UK Court orders $200 million guarantee to FG
Nigeria’s Foreign Exchange Reserves was boosted after a London Court ordered the release of $200Million placed as security in the case against P&ID.
A London Commercial Court has ordered the release of a $200 million guarantee as security to be paid to the Nigerian government in the P&ID $10 billion Arbitral Claim.
This was disclosed in a social media statement by the Central Bank of Nigeria on Tuesday.
Nigeria's Foreign Exchange Reserves was this morning boosted by over $200Million when the London Commercial Court ordered the release of the $200Million guarantee put in place as security in respect of the execution of the much discredited P&ID $10 Billion Arbitral Claim.
— Central Bank of Nigeria (@cenbank) September 29, 2020
Nairametrics reported earlier this month that The Federal Government secured a landmark victory in its bid to overturn a $10 billion arbitration judgment award against it in a case against Process and Industrial Developments (P&ID).
READ: Nigeria seeks bank documents of former President, others over $9.6 billion P&ID case
The Court said that Nigeria has established a strong prima case that the contract was procured by bribes paid to insiders as part of a larger scheme to defraud Nigeria. He said that there is also a strong prima face case that the P&ID’s main witness in the arbitration, Mr Quinn, gave perjured evidence to the tribunal, and that contrary to that evidence, P&ID was not in the position to perform the contract.
In today’s statement, the CBN said, “Nigeria’s Foreign Exchange Reserves was this morning boosted by over $200Million when the London Commercial Court ordered the release of the $200Million guarantee put in place as security in respect of the execution of the much discredited P&ID $10 Billion Arbitral Claim.”
READ; Why the NNPC is being dragged to US courts by Exxon Mobil, Shell
“The court also awarded a £70,000 cost in favour of Nigeria in addition to an earlier award of £1.5m.”
On January 31, 2017, an arbitration tribunal had ruled that Nigeria should pay P&ID, the sum of $6.6 billion as damages and breach of contract after a 2010 deal for a gas project in the Niger Delta part of Nigeria collapsed. The pre and post judgement accrued interest of 7% has seen the amount standing against Nigeria, rise to almost $10 billion, an amount that will be a serious dent on the country’s external reserve.
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HealthPlus crisis: Alta Semper directors reported to Police for trespassing
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