Uyo bubbles as Jonathan commissions Akwa Ibom Stadium

Uyo, the capital of Akwa Ibom state has literally come alive as no fewer than four Heads of Governments from across the West African sub region gather for the elaborate commissioning of one of the most magnificent sporting infrastructure in Africa-the Akwa Ibom international stadium..

President Goodluck Jonathan, GCFR led Ghanaian leader, Dr. John Dramani Mahama and Ivorian Head of State, Dr. Alassane Ouattara to the stately Akwa Ibom International Stadium, Uyo this evening, with Governor Godswill Obot Akpabio, CON, as Chief Host.

Akpabio is showcasing the majestic facility, which has already been approved by the Confederation of African Football for the crucial 2015 Africa Cup of Nations qualifier between Nigeria and South Africa on November 19, as one of the key points of his uncommon transformation of the oil –rich State.

Apart from Presidents Jonathan, Mahama and Ouattara, a number of Governors from across Nigeria are expected, while President of Nigeria Football Federation, Mr. Amaju Melvin Pinnick and some Executive Committee members and Management staff arrived in Uyo Thursday evening.

The 30,000 – capacity venue, with a bullet –proof State Box that has 70 seats, has  been described by the Vice President of Ghana Football Association, Mr. Fred Crentsil (who was sent by CAF to inspect the venue) as being “among the best you can find anywhere in the world.”

DMO to auction N65 billion in bonds on November 12

The Debt Management Office (DMO) says it plans to raise N65 billion ($392 million) worth in sovereign bonds with maturities of three to 20 years at an auction on November 12.

The debt office said it will auction 10 billion worth of three-year bonds, 30 billion naira of 10-year debt notes and 25 billion naira of 20-year bonds next Wednesday using the Dutch Auction system.

All the bonds are re-openings of previously issued debt notes.

Interbank rates at three-year low on new CBN rules

Interbank lending rates slipped to a three-year low after the central bank announced a restriction on the volume of idle cash that banks can place with it.

The Central Bank of Nigeria (CBN) on Thursday restricted lenders and discount houses from depositing more than 7.5 billion naira ($45.25 million) each, increasing interbank naira liquidity.

Interbank lending rates closed around 8 percent across the board on Friday, 2.2 percentage points lower than last week’s 10.2 percent.

Dealers said many banks were taken aback by the new limit on central bank deposits and were willing to place funds with borrowers at whatever rate.

Any amount deposited above the stipulated 7.5 billion naira by each bank will not attract any interest payment, the new rule specified. The regulator currently pays on 10 percent of cash deposited with it by banks.

Both Open Buy Back (OBB) and overnight placement with other banks were traded around 8 percent each on Friday, lower than 10.15 percent and 10.25 percent for OBB and overnight last week.

Dealers said interbank lending rates are expected to rise back to around 10 percent next week as banks adjust their lending to the new CBN rule.

Reuters

 Nigerian Stocks Fall in World’s Worst Drop as Bank Defends Naira

Nigerian stocks tumbled, with the benchmark index closing in a bear market, as the central bank intervened to defend the currency of Africa’s biggest oil producer and halt its slump to a record low against the dollar.

The Nigerian Stock Exchange All Share Index dropped 3.7 percent to 33,225.75 by the close in Lagos a 12th day of declines in the longest losing streak since January 2009. The gauge has tumbled 23 percent from this year’s high on July 9, the most among world equity measures tracked by Bloomberg. The naira surged, erasing a decline after Deputy Governor Sarah Alade said the central bank was selling dollars to the market.

Nigeria is facing lower export earnings after the average crude price among members of the Organization of Petroleum Exporting Countries dropped below $80 for the first time in four years.

The weak naira is threatening Central Bank of Nigeria Governor Godwin Emefiele’s pledge to avoid raising interest rates before presidential elections next year.

 Shippers move to resist high port charges

THE President, Shippers Association, Lagos State, Mr Jonathan Nicol, on Thursday said its members would resist high charges by shipping companies and terminal operators.

Mr Nicol who said this to news men in Lagos, against the backdrop of controversies between the Nigerian Shippers’ Council (NSC), shipping companies and terminal operators on port charges, added that the shippers’ associations had been calling for a reduction in port and other cargo handling charges for many years.

 He said the shipping lines and terminal operators should know that without the shippers, without the cargoes, they would not raise invoices against anyone.

The shipper said it was mandatory for all terminal operators and shipping companies to take their empty containers, adding that not taking such containers had created a major traffic problem at the ports.

CBN restricts dollar sales to some importers

The Central Bank of Nigeria (CBN) has banned the sale of dollars to importers of telecom equipment, power generators and finished products at its foreign exchange auction, instead shifting demand to the interbank market, dealers said on Thursday.

The CBN also restricted lenders and discount houses from placing more than 7.5 billion naira ($44 mln) each as deposits with the regulator, swelling interbank naira liquidity.

The naira hit a new intraday low of 170.5 against the dollar on Thursday, falling 1.87 percent as the stock market continued to slide.

Reuters

Naira sinks further, crossing N170 line

Nigeria’s Naira sank to its lowest intraday level in almost five-years of 171.65 as the Nigerian central bank moved to curb excess dollar demand at its foreign exchange auctions, instead shifting demand to the interbank market, amid tight supply.

The Naira slide followed CBN’s ban on the sale of dollars to importers of telecom equipment, power generators and finished products at its foreign exchange auction, instead shifting demand to the interbank market.

The central bank also restricted lenders and discount houses from placing more than 7.5 billion naira ($44 mln) each as deposits with the regulator, swelling interbank Naira liquidity.

Tanzania's economy grows 7.1 pct in first half of 2014: minister

 

Tanzanian government says its economy grew 7.1 percent in the first half of 2014 from a year earlier, slightly slower than its expansion in the same period of 2013.

Africa's fourth-biggest gold producer, and a major tourist destination, forecasts economic growth of 7.2 percent this year and maintained its forecasts for the next two years on Thursday.

The government also plans to spend 5.777 trillion Tanzanian shillings ($3.39 billion) on development projects in fiscal 2015/16, the minister said in a separate report he submitted to parliament on Thursday.

Tanzania, a nation of 45 million people, is aiming to become a middle-income economy and Wasira said per capita income had risen to $706 last year, from $600 in 2012.

Tanzania's current account deficit, however, widened to 7.6 percent of gross domestic product in the year to August, according to latest data, because the country received less aid and fewer loans this year and due to rising imports.

GE to start building 100 MW wind farm in Kenya next year

 

General Electric (GE) plans to begin construction of a 100 MW wind power farm in Kenya early next year and expects it to be up and running within 18 months.

Kenya is pushing to expand its power generation capacity by 5,000 MW by 2017 from about 1,700 MW now to reduce tariffs, tackle power shortages and cut costs of doing business. It plans to do this by tapping renewable source like wind and geothermal energy.

The GE wind power project, which will cost about $300 million to build, is located in the Kipeto area of Kajiado county in the Rift Valley.

George Njenga, head of GE's distributed power business in sub-Saharan Africa, told reporters that construction would begin almost immediately after financial details are finalised in early 2015, and that the farm would begin supplying power to the grid 12-18 months later.

Sasol says Nigeria gas-to-liquids plant producing by mid-2015

South African petrochemicals group Sasol expects full production at a gas-to-liquids plant in Nigeria it is developing with Chevron by mid-2015, a senior official said on Thursday.

The Escravos GTL plant in the Niger Delta has suffered multiple delays and its development cost has soared from an initial $2.5 billion to around $10 billion, industry experts say. It is expected to produce 33,200 barrels per day of fuel.

The plant is jointly owned by the Nigerian state energy company NNPC and Chevron, which uses Sasol's GTL technology.

FEC approves $945m loan for flood prevention, water

The Federal Executive Council on Wednesday approved three foreign loans totaling $945million meant to improve irrigation system, prevent flooding in Ibadan, Oyo State and provide water for Bauchi, Ekiti and Rivers States.

The council also approved four different road projects totaling N22 billion at its meeting presided over by Vice President Namadi Sambo.

President Goodluck Jonathan was at the time in Burkina Fasso on a peace mission alongside two other African leaders.

Ministers who briefed State House correspondents at the end of the meeting were Taminu Turaki (Special Duties); Bashir Yuguda (State, Finance); Sarah Ochekpe (Water Resources); Akinwunmi Adesina (Agriculture and Rural Development); and Stephen Oru (Niger Delta Affairs).

Yuguda said the first of the five memoranda presented to the council by his ministry for approval was the one on the International Development Association’s credit of $495million for proposed irrigation management.

The minister also disclosed that the council approved another $250million for the proposed third national urban water sector reform project.

About one million Nigerians are to benefit from the project in the three states.
He explained that the Federal Government would take the facility and then lend it to Bauchi, Ekiti and Rivers States.

Nigeria, others get $10.6bn for 141 projects

The World Bank Group loan and grant approvals for Nigeria and other Sub-Saharan African countries have hit $10.6bn.

In its 2014 Annual Report, the bank said its assistance to Africa reached a record high this fiscal year with the approval of $10.6bn for 141 projects.

Support included $420m from International Bank for Reconstruction and Development and $10.2bn from International Development Association.

The leading sectors are public administration, law and justice ($2.1bn); energy and mining ($1.9bn); and transportation ($1.5bn).

Specifically on Nigeria, the bank said, “In a major push, IBRD, IFC, and MIGA combined forces under a joint Energy Business Plan for Nigeria.

ECOWAS sets 2020 for use of single currency

The Economic Community of West African States has set 2020 as deadline for the use of single currency in the region.

The Head of ECOWAS National Unit, Ghana, Mr. Bonaventure Adjavor, said this on Monday in Calabar, the Cross River State capital, during a meeting of the commission on strategic planning framework for 2016-2020.

He said in spite of language difference, French, English and Portuguese, the commission would ensure a single currency note in 2020.

Adjavor who was the chairman of the meeting, said the currency would facilitate the movement of people and communication in the region.

Also, the Director of Strategic Planning, ECOWAS Commission, Mr. Essien Abel-Essien, said that the committee was working tirelessly to ensure that single currency note for the region is achieved by 2020.

He said that the meeting was organized to harvest ideas and inputs that would ensure the preparation of strategic documents that reflects the aspiration of ECOWAS vision 2020.

The 2020 vision seeks to create a borderless, peaceful, prosperous and cohesive region, built on good governance.

Okonjo-Iweala Puts Nigeria’s Infrastructure Spending at $6bn, Wants Faster Processing of PPPs

The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala,  has disclosed that  the country's spending on infrastructure currently stands at about $6 billion.

She advocated a  refined and  improved  use of Public Private Partnerships (PPPs) for the  execution of important projects capable of  improving  the economy and delivering  benefits to the citizenry.

The minister said Nigeria requires about $14 billion annually, out of which $10 billion should  come from the federal level, noting that the estimate was not comprehensive.

Dangote Sells Cement Only For N1,000 Per 50 Kg

Dangote Cement Plc during the weekend announced drastic reduction in the price of cement it produces. 

In a statement signed by GMD/CEO, of the company, Mr. Devakumar Edwin, it pegged the Dangote 32.5 cement grade at N1,000 per 50 kg bag, while the higher 42.5 grade would sell for N1,150 per bag.

The statement said that the new prices were exclusive of the Value Added Tax, VAT, representing about 40 per cent discount on the prevailing market price of the product currently sold for N1,700 irrespective of the grade, across the country.

 

 Naira falls on low supply of dollars

Nigeria’s naira slipped against the dollar on the interbank market on Monday, driven by tight supplies of the U.S. currency and sustained strong demand from offshore investors selling their equity holdings.

The local currency closed at 165.75 to the dollar, compared with 165.65 on Friday.

A unit of Addax sold $10 million to some lenders, Eni sold $2 million while Royal Dutch Shell sold an undisclosed amount of dollars. But aggregate dollar flows were seen as insufficient to support the local currency.

The naira has been under pressure over the past six weeks from falling global oil prices and a drop in Nigeria’s forex reserves, which has led offshore investors to cut back their positions in the debt and stock markets.

Traders said the naira had weakened to around 166.02 to the dollar intraday, but recovered a little after sales of dollar by energy companies.

The local currency is expected to stay in a range in the days ahead as more energy firms sell dollars in the interbank market and central bank keeps watch over currency moves.

Reuters