09/05/2017
PUNCH
Naira hits 400/dollar on CBN's investors FX window - The naira traded at 400 to the United States dollar in deals for investors on Monday, traders told Reuters, two weeks after the Central Bank of Nigeria introduced the Investors FX Window. The window was designed to allow investors, trade in the currency at market-determined rates. Trading sources said investors were demanding rates above N400/dollar while locals were quoting rates as low as N350/dollar. The sources said traders held a conference call last Friday with market regulator FMDQ OTC Securities Exchange to discuss the wide range of quotes on the naira for investors, although the meeting did not produce any resolutions. FMDQ provides daily opening and closing quotes on the naira. Traders, worried about illiquidity in the currency market despite making the exchange rate market-determined for investors, said no resolution was reached at the meeting.
Nigerian oil sales slow as uncertainty surrounds DSDP - Trade of Nigerian crude oil has slowed with offers not meeting buying interest and uncertainty remains over the nation's direct sale of crude oil and direct purchase of products' programme for 2017. A short-list of winners emerged for the swaps but final contracts have yet to be signed, Reuters quoted sources as saying. Total was said to have sold a cargo of Bonga to Cepsa loading at the end of May, while ExxonMobil was still offering a cargo of Usan loading at dated Brent minus 50 cents, loading June 25-26. It originally offered the cargo last week. Indonesia's Pertamina is taking Bonny Light and Qua Iboe in its tender for crude loading in the second half of 2017. Last month, it was reported that the Nigerian National Petroleum Corporation was drafting a preliminary list of recipients for the DSDP programme, with details on allocated volumes and specification changes still being decided.
FG sets up committee on N200bn pension debt - The Minister of Finance, Mrs. Kemi Adeosun, on Monday inaugurated an inter-ministerial committee to review all pension liabilities of the Federal Government and come up with strategies to offset them. Adeosun heads the committee made up of the Accountant General of the Federation, Alhaji Ahmed Idris, and the Director-General, Budget Office of the Federation, Mr. Ben Akabueze, among others. She said the composition of the committee was approved by President Muhammadu Buhari, adding that its terms of reference were to review and reconcile all pension liabilities and make recommendations as to what portion of the liabilities could be funded through budget appropriations, as well as to suggest creative ways of funding the balance. A statement from the Director of Information in the Ministry of Finance, Mr. Salisu Dambatta, stated that the Finance minister tasked the members of the committee to identify any pension asset that could be in suspense and ensure that such funds were used in offsetting the liabilities.
Enelamah, others to discuss economic recovery plan implementation - The Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah, is to meet with top officials of the ministry to work out strategies for the implementation of the Economic Recovery and Growth Plan. The ERGP, which was launched last month by President Muhammadu Buhari, is the government's blueprint to take the economy out of recession and ensure inclusive growth and sustainable development. The Special Adviser on Media to the Permanent Secretary, FMITI, Mr. Babajide Iletogun, who confirmed the development on Monday, said the meeting would enable the ministry to fine-tune its industrialisation strategies for the next three years. He said in a statement that the meeting, which holds on Friday, would be attended by the Economic Adviser to the President, Dr. Yemi Dipeolu, and top economists such as Dr. Ayo Teriba, among others.
GE donates 200 wagons, 20 locos to Nigerian railway - An American multinational corporation, General Electric, is set to deliver 20 free locomotive engines and 200 wagons worth over N30bn to the Nigerian Railway Corporation to boost rail services in the country. This is coming ahead of negotiations between the Federal Government and the GE on the proposed concession of part of railway operations to the conglomerate. The Minister of Transportation, Mr. Rotimi Amaechi, stated this on Monday after a first meeting of the Ministry of Transportation Implementation Committee for the new Lagos-Ibadan rail held in Lagos. He said the proposal would be presented to the Federal Executive Council for approval at its next meeting. Amaechi, who also had a meeting with the NRC workers, said GE had agreed to assemble locomotives and other rolling stock in the country after taking over the Nigerian railway's operation.
THE GUARDIAN
NASCON to increase shareholders' value through products roll-out - As part of its commitment to enhance shareholders' value through robust dividend payout, NASCON Plc has announced plans to roll out more products before the end of the current financial year. The products, when introduced, according to the Chairperson of the company, Yemisi Ayeni, would enhance the company's turnover, profitability and ultimately increase shareholders' value on investment. Addressing shareholders during the company's yearly general held in Lagos at the weekend, Ayeni, explained that the company recorded a turnover of N18.29 billion, representing a 13 per cent increase over the N16.18 billion in the previous year. Similarly, its profit after tax rose by 15 per cent from N2.11 billion in 2015 to N2.42 billion, while earnings per share also increased from 79 kobo to 91 kobo. The company posts N2.45 billion in cash reserves for the year under review.
CBN, NGE seek support to revive Nigeria's economy - The Central Bank of Nigeria (CBN) has again, sought the intervention of media practitioners in the country to support the diversification plans geared towards improving the economy. Explaining the apex bank's role in managing economic recession at the just concluded biennial convention of Nigerian Guild of Editors (NGE) in Lagos, spokesman of the bank, Isaac Okoroafor, said the impact of economic crisis was so much on the citizens because of its structural issues. "We are in recession because of our collective failure to diversify our economy," he said.Meanwhile, NGE has reechoed CBN's calls on Nigerians to support the its activities to diversify the economy, just as it commended the efforts of the bank towards resuscitating the nation's ailing economy. The also commended CBN for its intervention in the forex market, which it noted not only moderated the exchange rate, but also halted the rising inflation in the country.
'CBN's records show $270 million forex irregularities' - The House of Representatives ad-hoc committee on the Review of Pump Price of Petroleum, said it has discovered discrepancies in the records of Central Bank of Nigeria (CBN), indicating that $270 million worth of foreign exchange (forex) has remained unaccounted for. The latest discovery is among several others uncovered in the recent past, showing irregularities in forex handling and diversion of petroleum products by operators in the oil industry. At an investigative hearing last week, where some oil lifting and distributing companies appeared, the Chairman of the ad-hoc committee, Hon. Nnana Igbokwe, blamed the companies for their unclear activities, which he said have contributed to the recent hike in the litre price of fuel. Igbokwe said based on the documents of the CBN, huge sums of Forex collected by oil traders for the purpose of purchasing petroleum products, had been diverted for other use and called on the federal government to be committed to its regulatory functions.
BUA cries out for help against communal hostilities - The Managing Director of BUA Sugar Refinery in Lafiagi, kwara State, Ibrahim Yaro, has urged the federal government to curtail the alleged excesses of some host communities against indigenous and foreign investors in Nigeria towards the speedy recovery of the nation's economy. He believed that incessant hostilities of some of the host communities have put business activities on hold, saying that the development has also led to the loss of job opportunities among qualified Nigerians. Yaro said this during an inspection visit by the Minister of State, for Industry, Trade and Investment, Aisha Abubakar, and her entourage to the factory.The BUA boss noted that the federal government's intervention has become imperative because of the hostilities the sugar company suffered in their host community, Lafiagi, are severe, and substantially disturbed the success of their project in the community.
THE NATION
'Investment in Lekki Free Trade Zone hits N4.55tr' - The Lagos State government has said investment in the Lekki Free Trade Zone has hit about N4.55 trillion. Commissioner for Commerce, Industry and Cooperatives, Rotimi Ogunleye told journalists yesterday in Alausa that the investment includes N3.35 trillion ($11 billion) from Dangote Group and N1.2 trillion ($4billion) from other investors. Ogunleye said about 116 investors had so far registered with the Lekki Free Trade Zone. Only 16 have commenced operations. According to him, while some factories are currently under construction, 100 investors have signified their intention to register and situate their business within the zone. "The Lekki Free Zone remains a landmark industrial project for the Lagos State government. The strategic partnership between the Lagos State government and the China-Africa Lekki Investment Limited (CALIL) in the Lekki Free Zone Development Company (LFZDC) is a testament to the undying resolve of the state government to ensure sustainable industrialisation of the state that would translate to improved job and wealth creation as well as economic growth through the attraction of local and foreign direct investments.
NCC to sanction telcos for poor services - The Nigeria Communications Commission (NCC) yesterday said is set to sanction telcos who are performing below the industrial average with consistently poor service delivery. Its Executive Vice Chairman, Prof Umar Dambatta, made the threat during an investigative session by the Ahmed Abu- headed House of Representatives' Ad-hoc Committee investigating activities of telecoms equipment, service companies and vendors in the country. According to him, the key performance indicators (PKIs) of the NCC when applied to the services of the telcos showed that they were performing below par. This got to the highest level especially in the months of October, November, December 2016, he said. "We invited the operators and laid bare what was happening to the quality of service which has degraded to unacceptable level," he said, adding that NCC will be taking compliance action to compel the service providers to provide acceptable standard of service delivery.
Fed Govt to DisCos: nobody forced you to buy power assets - Power, Works & Housing Minister Babatunde Fashola was unsparing yesterday in Jos as he told the 11 DisCos to sit up. He said the Federal Government and Nigerians were fed up with excuses from the DisCos over their shortcomings and berated them for lack of "corporate governance" in their relationship with consumers. The minister told the DisCos to stick to the terms of their licences and implement their remittance obligations without complaints. Fashola spoke in the Plateau State capital during the monthly meeting of stakeholders in the power sector, hosted by the Jos Electricity Distribution Company (JEDC) at their NIPP Injection substation at Lamingo Dam. According to the minister, who chaired the 15th monthly meeting, "the monthly meeting is to provide opportunity for stakeholders to meet and brainstorm on challenges and ways to improve power supply to the satisfaction of all Nigerians." He rejected the excuses of the DisCos and the various attempts by them to justify why they have not satisfied their consumers.
Ngige: no funds to pay workers - New minimum wage talks may have been shifted until salary and promotion arrears owed civil servants are cleared, it was learnt yesterday. Minister of Labour and Productivity Chris Ngige, Minister of Finance Mrs. Kemi Adeosun, Budget Office Director-General Ben Akabueze and Nigeria Labour Congress (NLC) President Comrade Ayuba Wabba met yesterday with the leadership of the National Assembly to find ways of clearing salary and promotion arrears of civil servants. Also for discussion at the closed door meeting chaired by Senate President Bukola Saraki was the issue of payment of transfer allowances of workers and death benefits. Ngige told reporters that they were at the National Assembly on the invitation of ledership. He added that though some progress was made at the meeting, all sides were to go back and come back tomorrow with possible solution to the identified issues which is that "government does not have enough fund for now to tackle the issues".
DAILY TRUST
NNPC awards Ajaokuta-Kaduna-Kano gas pipeline to Chinese firm - The Nigerian National Petroleum Corporation (NNPC) has awarded the construction of Ajaokuta- Kaduna-Kano Gas pipeline to a Chinese company-China Petroleum Group Engineering Co., Ltd (CPGE). The company disclosed this yesterday in its project bid announcement to the Chinese authorities where it said that its subsidiary- China Petroleum Pipeline Bureau Engineering Co., Ltd. and Brentex Petroleum Services Limited (Brentex) won the contract by the NNPC. The company said the main package of the contract including: 40-inch pipeline 221 km, 2 station and 7 valve room and its ancillary facilities, while the project duration to the final signing Agreement prevail. It also stated that, the consortium will assume the design, procurement, construction and transportation of the Kaduna-Kano pipeline Line and training work. "The proportion of the Company in the construction sector is 80%, is expected to be about $949 million."
Over 40% of electricity diverted, stolen – Abuja DisCo - Abuja Electricity Distribution Company (AEDC) has said over 40 per cent of the energy generated is diverted and stolen by some disreputable individuals. The Distribution Company (DisCo) in a new document it launched recently on Energy Theft said, "As a result of this, honest customers who actually pay for electricity do not get to enjoy it. Even employers of labour and producers that grow the economy do not have enough electricity supply as a result of this." The document prepared by Ephraim Akamihe and Chide Omovbude of the legal department and acknowledged by Oyebode Fadipe and Ahmed Shekarau of the Corporate Communications and Public Relations department. It warned customers to avoid such practices and report suspects to the firm and security personnel for necessary actions.
Aiteo clears air on $1.2bn oil swap deal - Integrated energy group Aiteo, says it is not subject of an inquiry by the House of Representatives over an alleged payment of $1.2billion into the Central Bank of Nigeria's (CBN) Petroleum Profit Tax (PPT) account and involvement in questionable crude oil transactions from 2011 through 2014. Managing Director, Aiteo Downstream, Mr. Ewariazi Useh said in a statement that the group has no records of receiving any invitation from the Committee of the National Assembly relating to the inquiry that is the subject matter of a recent report by a national daily relating to the alleged export of $17billion undeclared crude and gas resources from the country. He said no statements or explanation has been provided, on this subject, in this respect, by Aiteo or any of its authorised representatives, adding that his company had participated in and provided information to several inquiries and investigations into activities in the oil and gas industry conducted by the National Assembly, over several years and will continue to do so with a view to boosting the nation's economy.
Marginal fields bid round to commence this month – Kachikwu - The federal government recently paid $400 million as part settlement of an outstanding 2016 joint venture cash call debts it owes international oil companies (IOCs), could you explain more on this? At the time that we did the joint venture review, we came up with, we had two components to it. The first was the $6.8 billion of arrears covering about six years which were owed the oil companies. In our negotiations, we were able to trim that down to about $5.1 billion, so we knocked off $1.7 billion out of it and then spread the $5.1 billion over the next five years to be paid from incremental production, not from existing production. In other words, they will have to go find new oil and from that new oil, recover their money because we didn't want to imperil the 2.2 million that everybody is already used to.
UK businesses to partner Jagal - The new British Deputy High Commissioner for Lagos, Laure Beaufils, says the Snake Island Integrated Free Zone (SIIFZ)offers potential to deepen the bilateral relationship between the United Kingdom and Nigeria. She explained that the development would enabled UK businesses to partner with Jagal Energy and Nigerdock and to promote exports and investment in Nigeria. She spoke during her visit to the company's facility, located at Snake Island Integrated Free Zone in Lagos, as part of her familiarization of the oil and gas industry in her new role to explore opportunities for UK firms to do business in Nigeria. She commended the significant contributions of Jagal Energy and Nigerdock to the growth of Nigeria's energy sector. Presenting an overview of Jagal Energy to the delegation, the Group MD Chris Bennett explained that Jagal has been in the forefront in providing world class services in Nigeria's energy sector for many years, driven by its core values of leadership, excellence, accountability and dynamism.
VANGUARD
First Bank targets 30m customers, 70% digital transactions by 2019 - First Bank Nigeria Limited has said that it will achieve 30 million customer base and 70 per cent digital banking transactions by 2019. Managing Director/Chief Executive, FirstBank Limited, Dr. Adesola Adedutan disclosed this in an exclusive interview with Vanguard Newspaper. Speaking on efforts to return the bank to profitability and address the bank's huge non-performing loans (NPL) problem, Adedutan said that the current management has commenced ex*****on of a three year strategy that will reduce NPLs to regulatory threshold as well as grow the customer base. He said: "The strategy is focused on significantly growing our customer base. We plan on having minimum of 30 million customer account over the three years. We are currently at about 14 million customer accounts. Our commitment is that, given the number of branches that we already have, which is slightly below 750, we don't intend to make additional significant investments in building new branches.
Chevron/EGCDF executes 116 projects in Delta - The Egbema andGbaramatu Communities Development Foundation (EGCDF) have executed 116 projects in Delta State. EGCDF is a tripartite body between the Ijaw communities in Warri South West and Warri North Local Government Areas of Delta state, NNPC/ Chevron Joint venture and the Government of Delta State Chief Michael Johnny, outgoing chairman of EGCDF said that his four years in office was quite intriguing and challenging while working to execute the projects. "My executives and I have contributed our quota to the development needs of our communities; we look forward to seeing our communities ten times better in four years to come," he stated. He said that his team met 91 completed and commissioned projects and inherited a number of uncompleted and abandoned projects. Johnny disclosed that abandoned projects were revoked and re-awarded to new contractors, thus enabling them to leave behind track record of 116 completed and commissioned projects.
Global oil rig counts hit 956 in April - There are strong indications that oil exploration and production have increased in different parts of the world as the global rig counts hit 956 in April 2017, showing an increase of 13 against 943 recorded in March, this year. Baker Hughes report released over the weekend also showed that the international offshore rig counts for April 2017 was 201, up four from the 197 counted in March 2017, but still down by 19 units against the 220 counted in April 2016. "Baker Hughes Incorporated announced today that the international rig count for April 2017 was 956, up 13 from the 943 counted in March 2017, and up 10 from the 946 counted in April 2016. The international offshore rig count for April 2017 was 201, up 4 from the 197 counted in March 2017, and down 19 from the 220 counted in April 2016. "The average U.S. rig count for April 2017 was 853, up 64 from the 789 counted in March 2017, and up 416 from the 437 counted in April 2016.
TCN gets $1.5bn to finance power transmission projects - The Transmission Company of Nigeria (TCN) has secured about $1.5 billion dollars from donor agencies to finance power transmission projects in Ogun State and other parts of the country. The Managing Director of the company, Mr. Usman Gur Mohammed, disclosed this during a courtesy visit to the state Governor, Senator Ibikunle Amosun, in his office in Abeokuta. According to him, "TCN would require land in places, such as, Lukosi, in Abeokuta; Redemption Camp and Mountain of Fire Ministries area, along the Lagos-Ibadan Expressway corridor as well as Ajegunle, very close to Agbara and Arigbajo axis. "The land would be used for building sub stations that will help to expand the nation's transmission capacity, adding that the sum of $1.5 billion dollars has already been secured from donor agencies to finance the project,'' he explained. He stated that TCN cannot expand its transmission capacity without the active collaboration of the state governments, especially in the area of getting the right of way to acquire additional lands and payment of compensation to people, who may be displaced.
REUTERS
Oil gives up earlier gains as rising US output, China concerns weigh - Oil prices gave up earlier gains on Tuesday, as concerns over slowing demand and a relentless rise in U.S. crude output undermined the impact of hopes that OPEC-led production cuts could be extended. Brent crude futures, the international benchmark for oil prices, were at $49.37 per barrel at 0252 GMT on Tuesday, down from a high of $49.60 earlier in the day and near their last close. U.S. West Texas Intermediate (WTI) crude oil futures were trading at $46.46 per barrel, down from an intra-day high of $46.66 and also little changed from their last settlement. Traders said that oil markets were under pressure as persistent climbs in U.S. production, especially from shale oil drillers, and concerns over a slowdown in China undermine efforts led by the Organization of the Petroleum Exporting Countries (OPEC) to prop up prices. U.S. crude production has risen by over 10 percent since mid-2016 to 9.3 million bpd, close to the output of top producers Russia and Saudi Arabia.
Trump review of Wall Street rules to be done in stages: sources - The U.S. government's review of a landmark 2010 financial reform law will not be complete by early June as originally targeted, and officials will now report findings piece-by-piece, with priority given to banking regulations, sources familiar with the matter said on Monday. President Donald Trump has pledged to do a "big number" on the Dodd-Frank financial overhaul law, which raised banks' capital requirements, restricted their ability to make speculative bets with customers' money and created consumer protections in the wake of the financial crisis. In February, Trump ordered Treasury Secretary Steven Mnuchin to review the law and report back within 120 days, saying his administration expected to be cutting large parts of it. But the Treasury Department is still filling vacancies after the transition from the Obama administration and there are not enough officials to get the full review done by early June, three sources said.
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Chinedu Moghalu
Head, Corporate Communication Department
Nigerian Export-Import Bank (NEXIM)
Plot 975 Cadastral AO
Central Business District
Garki, Abuja, Nigeria
Email: [email protected]
Phone:+234-9-460-3644; +234-808-835-3804
Website: neximbank.com.ng
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"Great tranquility of heart is his who cares for neither praise nor blame."
~ Thomas Kempis.
