PENGASSAN, NUPENG call off strike

  
NIGERIA’S striking oil workers on Friday suspended their five-day industrial action after a lengthy meeting with the Federal Government, TheCable reports.

The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) on Monday embarked on a strike in protest of unresolved labour issues, prompting long queues for fuel in the Federal Capital Territory and other parts of the country.

Two among the unions’ protestations were the failure of the government to carry out turn around maintenance of the nation’s refineries and cut down the prices of petroleum products in line with the fall of global oil price.

 Another grouse of the unions was the sacking of a member, Elo Victor Ogbonda, by Total, after she was elected a zonal executive of PENGASSAN. The unions demanded her immediate reinstatement, but the oil giant’s refusal to reinstate Ogbonda was believed to have the tacit sanction of the government.

 However, after a 12-hour closed-door meeting, representatives of the unions and the government delegation led by Taminu Turaki, the supervising minister of labour, issued a joint communiqué with a promise by the government to resolve the issues raised by the unions. The scarcity of petrol caused by the strike was biting in the capital city, as motorists complained that a litre of petrol at the black market was sold for N250.

Nigerian interbank rates ease on expectation of budget disbursal

Nigerian interbank lending rates eased to an average of 15.25 percent on Friday, from 42.5 percent last week, after some lenders re-discounted their treasury bills to access some cash and dealers anticipated a budget disbursal.

The overnight lending rate had climbed to 80 percent on Tuesday, as banks scrambled for naira cash to pay for their foreign exchange purchases and meet other obligations.

The central bank last month hiked the CRR on private sector deposits with commercial lenders to 20 percent, from 15 percent, to support the local currency. It also raised interest rates by 100 basis points to 13 percent.

Dealers said cash from monthly disbursal of budgetary allocations to government agencies is expected to hit the banking system by close of Friday, which should further increase available cash.

The balance that lenders hold with the central bank closed at a surplus of 93 billion naira ($504.07 million), compared with debit of over 100 billion naira last week.

Nigerian Qua oil loadings to fall, helping ease glut

 

Shipments of Nigeria's largest crude stream will fall by a third in February, a loading programme showed, potentially supporting differentials which have slid to multi-year lows due to a glut.

Nigeria will export 271,000 barrels per day (bpd) of Qua Iboe crude in February, down from 398,000 bpd in January, a schedule provided by a trade source showed on Friday. The oil will be loaded on eight cargoes, five fewer than in January.

The drop comes as Nigerian crude oil differentials have fallen to the lowest in years. The United States, traditionally a big buyer, is importing less due to higher domestic output, and demand in Asia has slowed.

Further details on the maintenance were not immediately available. The U.S. press office of the operator of the Qua Iboe stream, Exxon Mobil, had no immediate comment on any planned work.

A cargo of Qua Iboe is currently worth a premium of 65 cents a barrel to benchmark dated Brent, according to Reuters data, the lowest premium since 2009.

Oil traders estimate between 25 and 30 January-loading cargoes of Nigerian crude - or 25 to 30 million barrels - out of 69 originally available, are still for sale. The release of February loading plans over the next few days will add at least another 50 cargoes.

While supply of Qua Iboe will fall in February, output of Nigeria's smaller EA stream has resumed and operator Royal Dutch Shell has lifted its force majeure on exports after repairing a mooring platform.

One 950,000-barrel cargo of EA is scheduled to load in February, a trade source said. Output has been shut since June.

NCP approves sale of NITEL/MTEL for $252m

THE National Council on Privatisation (NCP) has ratified the sale of the Nigerian Telecommunications Limited (NITEL) and Mobile Telecommunications Limited (MTEL) to NATCOM Consortium at the price of $252 million.

According to the chairman, technical committee of the council, Atedo Peterside, who spoke to State House correspondents in Abuja, after a meeting of the council chaired by Vice President Namadi Sambo, with the ratification, documentation and payments would now follow.

Also speaking, Minister of Mines and Steel Development, Musa Mohammed Sada, said the council also reviewed reports on the monitoring and evaluation of the entities so far privatised.

He said the exercise was carried out to ensure that the objectives of privatisation were met by the new owners, saying most of the companies evaluated were not doing badly.

New N100 note goes into circulation

The commemorative N100 banknote unveiled recently by President Goodluck Jonathan is going into circulation from today.

The Central Bank of Nigeria (CBN)  in a statement signed by Ibrahim Mu’azu, head, corporate communications, on Friday, directed all branches of the bank to commence issuance of the currency in their respective locations.

It recalled that the CBN Governor, Mr Godwin Emefiele, at the unveiling of the new banknote, explained that it was designed with enhanced security to offer robust resistance against counterfeiting.

It added that the authentication features of the note included window micro-optics, showing the national flag and numeral 100 indicating the value of the denomination and the attainment of the centenary period.

According to the statement, the QRC application, the bar code on the banknote, can be scanned by users to read a brief history of Nigeria.

It recalled that the apex bank, in 2010, issued commemorative N50 polymer note to mark Nigeria’s 50th Independence Anniversary celebration.

A weakening of auction demand for FGN bonds

The DMO held its final monthly auction of FGN bonds for the year on Wednesday, and raised N54bn (US$300m) from the sale of three debt instruments.

 These were all reopened issues (13.05% Aug ‘16s, 14.20% Mar ‘24s and 12.15% Jul ‘34s).

The marginal rates (effective cut-off points) widened in each case from the previous month, by between 240bps and 350bps.

The total bid of N94bn was the lowest of the year and about 10% below the previous month. This is due in part to concerns surrounding pressures on the naira exchange rate following the slide in oil prices. Furthermore, participation by local investors waned due to the lure of higher yields on money market instruments.

At this auction, offshore investors showed very little interest while the participating PFAs concentrated on the longer dated instruments. The DMO only achieved its sales target for the long bond (Jul ’34), and then at a price.

CBN intervenes to prop up sliding Naira

 

The Central Bank of Nigeria intervened again to prop up the Naira on Thursday after its efforts to stamp out speculation by barring commercial banks from holding dollars failed to prevent the currency hitting another record low.

Confused by a central bank edict restricting domestic dollar holdings, dealers initially refused to quote prices for the naira, which has lost more than 12 percent since September due to a collapse in the price of oil, Nigeria's main export.

The standoff lasted for nearly an hour before Governor Godwin Emefiele confirmed that the emergency measures were designed to end speculative pressure on the currency of Africa's biggest economy.

Nigeria officially devalued the currency by eight percent last month and widened its target trading band to 160-176 against the dollar, but few analysts believe that level can hold, given dwindling state oil revenues and declining reserves.

As of Dec. 8, foreign reserves stood at $35.95 billion, down nearly 20 percent from a year ago after attempts to defend the naira in the face of a near-halving of global oil prices in the last five months.

Thursday's decline for the naira followed a record closing low on Wednesday after Nigerian Finance Minister Ngozi Okonjo-Iweala slashed the economic growth forecast in her 2015 budget.

Nigerian Stock Index Drops to 2-Year Low as Oil Trades Under $60

Nigeria’s benchmark stock index tumbled to an almost two year low as the outlook for Africa’s biggest oil producer worsened with Brent crude trading below $60 a barrel.

The Nigerian Stock Exchange All Share index  weakened 2.3 percent to 29,789.59 in Lagos, the commercial capital, its lowest close since Jan. 15, 2013. The gauge has dropped 28 percent this quarter, the worst performance in Africa. The naira depreciated 0.2 percent to 180.65 against the dollar at 3:03 p.m., extending its loss since October to 9.3 percent.

Dangote Cement Plc (DANGCEM), controlled by Africa’s richest man Aliko Dangote and the largest company on the bourse, fell 4 percent to its lowest close since March 2013. Eight stocks rose, 34 dropped and 153 were unchanged.

Petroleum Minister appointed President of Gas Exporting Countries Forum

Nigeria's Minister of Petroleum, Dieziani Alison-Madueke has been appointed the President of the Gas Exporting Countries Forum (GECF).

Alison-Madueke’s appointment was announced today, December 16 at the 16th Ministerial meeting of the forum in Doha, Qatar.

The meeting was attended by ministers from Algeria, Iran, Libya, Qatar, Russia, UAE, as well as head of delegations from Bolivia, Equatorial Guinea, Egypt, Trinidad and Tobago Venezuela, Netherlands, Norway and Oman.

The minister was however absent at the meeting due to the ongoing oil workers’ strike in Nigeria which she is trying to resolve.

it would be recalled that Alison-Madueke was also appointed President of the Organization of Petroleum Exporting Countries (OPEC) on November 27.

Fitch Says Nigeria’s Growth to Slow Next Year as Oil Plunges

Growth in Nigeria and Angola, the only sub-Saharan African members of the Organization of Petroleum Exporting Countries, will slow next year because of weaker crude prices, according to Fitch Ratings Ltd.

Fitch’s 2015 growth projection for Nigeria, Africa’s largest economy and oil producer, was revised down to 5.2 percent from 6.4 percent, Carmen Altenkirch and Richard Fox, London-based sovereign analysts at the ratings company, said in a statement today.

Nigeria, along with Angola and Gabon, will also suffer from worsening current account and fiscal balances, they said.

Policy makers in Nigeria, which derives 70 percent of government revenue from oil, have proposed spending cuts and devalued the naira last month amid declining foreign reserves.

The naira has depreciated 9.4 percent against dollar this quarter, the worst performance in Africa after Malawi’s kwacha. Angola’s currency, the kwanza, is heading for its 17th week of losses.

Nigerian overnight interbank lending rate spikes to record high

 

Nigeria's interbank overnight lending rate spiked further by 20 percentage points on Tuesday to 80 percent following drop in liquidity on large naira cash withdrawal by the state-owned energy company.

Dealers said NNPC withdrew more cash from the system today, hitting hard on some banks, which have to resort to borrowing heavily from other banks to cover their position.

NNPC last week sold about $300 billion naira to some lenders as part of its usual month-end dollar sales and put the naira proceeds into its account with the central bank.

The cost of borrowing among banks has oscillated between a high of 70 percent and a low of 14 percent since last month, when the central bank hiked the cash reserve requirement (CRR)on private sector deposits with commercial lenders to 20 percent from 15 percent.

Electricity consumers protest poor power supply in Benin

Electricity consumers, in their hundreds, trooped to the headquarters of the Benin Electricity Distribution Company (BEDC), located at Akpapava in Benin, to protest poor power supply in their areas.

The protesters, who were mainly youths, marched through places like Ugbowo, Ekosodin, Aerodrome Close and Uselu to the head office of the power distribution company.

The protest caused gridlock on some major roads terminating at the Oba Square, while commuters were left stranded for hours.

Like in the past, they questioned the payment of N750 fixed charge, more so as they were enjoying skeletal power supply.

They threatened to permanently shut down traffic until answers were provided for their questions by the BEDC management.

It took the intervention of the Edo State Commissioner of Police, Foluso Adebanjo, to calm the angry youths and remove the barricade placed on the Akpakpava road.

Adebanjo appealed to the protesters to conduct their protest in a peaceful manner and not to disturb traffic.

There was also heavy presence of soldiers, policemen and officers of the Nigeria Security and Civil Defence Corps (NSCDC) at the scene of the protest.

Power supply drops to 2,954.51MW

THE energy sent out by the Nigerian Electricity Supply Industry (NESI) has dropped to 2,954.51 megawatts (MW).

The Federal Ministry of Power stated this on its website at the weekend, in the record of power generation and transmission in the market as at December 11.

There was no disclosure of what the market actually delivered to electricity consumers from the electricity distribution companies.

But it was certain that what got to the customers would be less than 2,954.51 megawatts, following weak and insufficient transformers and other obsolete equipment at the distribution end.

Of the 3,271.12MW that the electricity generation companies produced on December 11, the transmission company only evacuated 2,954.51MW, leaving 64.01MW stranded.

The Transmission Company of Nigeria (TCN) responsible for transmitting power to the distribution companies was said to possess the capacity for 6,000MW.

According to the statistics, power generation reduced from 3,271.21MW on December 2 to 3,018.52MW on December 11. This was an indication that power generation dipped within nine days by 252.69MW.

The statistics also showed that the peak power generation that was 3,554.60MW on December 2 dropped to 3,385.9MW on December 11.

Peak energy demand forecast for the market, according to the statistics, is 12,800MW.

Naira closes down 1 pct despite CBN intervention

 

The Central Bnak of Nigeria intervened on the interbank market on Tuesday to prop-up the naira, but the local unit still closed down 1 percent owing to strong dollar demand.

Traders said the local currency closed at 180.50 to the dollar, compared with 178.70 a dollar on the previous day.

Dealers said dollar demand remain strong from offshore funds selling down their equity holdings.

The local currency is seen trading around the 180 level until the end of the year, baring any major measure by the central bank, dealers said.

PENGASSAN/NUPENG Strike Enters its second day

Strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) entered its second day today.

The long queues seen yesterday have continued with some filling stations closed for business. The Immediate Past National Industrial Officer of PENGASSAN, Chika Onuegbu has frowned at filling stations in Port Harcourt and neighbouring states that have resorted to hoarding petroleum products following the strike, adding that it was unnecessary.

Chika Onuegbu also dismissed reports that the strike is politically motivated.

Meanwhile, the Immediate Past National Industrial Officer of PENGASSAN maintained that PENGASSAN is still loyal to loyalty to Nigerians.

Fuel Scarcity: Nigerian govt to meet striking oil workers Wednesday

The Federal government will meet officials of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, Wednesday, in an attempt to resolve issues surrounding the ongoing strike by members of the union.

PENGASSAN and the National Union of Petroleum and Natural Gas Workers, NUPENG, embarked on an indefinite strike on Monday to protest what they called anti-labour practices in the sector by oil companies, and the non-passage of the Petroleum Industry Bill, PIB.

Others grievances are the inability of government to carry out turn-around maintenance of the refineries and reduce pump prices of petroleum products in line with the slump in global prices of crude oil.

The strike is also to ensure that government evolves new strategies to combat pipeline vandalism and crude oil theft that have impacted negatively on the nation’s economy and employment in the country.

The unions are also protesting the non -implementation of the Nigeria Oil and Gas Industry Content Development, NOGICD, Act to reflect Nigerians in management positions and expatriate quota law, among others.

Nigeria: Oil Workers' Strike Won't Disrupt Supply - NNPC

 

The Management of the Nigerian National Petroleum Corporation (NNPC) has assured that the three-day strike embarked upon by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) will not disrupt fuel supply nationwide.

But, the South-West Chapter Chairman of NUPENG, Mr. Tokunbo Korodo, told newsmen yesterday that the strike would definitely affect distribution of fuel in the country.

The corporation, in a statement signed by its Group General Manager, Group Public Affairs Division (GPAD), Ohi Alegbe, in Abuja yesterday, said it was in discussion with the leadership of the unions who gave the assurance that they would not disrupt the fuel supply and distribution system as the strike was basically aimed at addressing the alleged anti-labour issues by some of the International Oil Companies (IOCs).

But, Korodo denied the claims by the NNPC, saying, "this is a lie, all our members are supposed to be on strike. We have told our members to stay off work. We are not allowing any truck to load from the depots and we have our members at the filling stations". He said that the unions were in talk with the government concerning the strike and the result of the meeting will determine if the association will be embarking on strike or not".

FG Hands Over Stallion Properties to NNPC

The Bureau of Public Enterprises yesterday handed over FG's 51 per cent shareholding in Stallion Property and Development Company to the Nigerian National Petroleum Corporation Pension Fund Limited.

Speaking in Abuja at the formal handover ceremony, the Director General, Bureau of Public Enterprises (BPE), Mr. Benjamin Dikki, said the move followed a 2006 request by BPE for approval by the National Council on Privatisation (NCP) for the privatisation of government’s interest in the company so that proceeds from the divestment could be used to bridge the previous funding gap of about N63 billion in NNPC staff pension fund.

The NCP consequently granted the approval in October 2013.

He said in line with that strategy, the net proceeds of the first transaction had been paid to NNPC staff pension fund which helped to reduce the liabilities at that time.

Naira devaluation: TUC to demand new minimum wage in 2015

 

The Trade Union Congress (TUC) has said the congress will demand a wage increase for workers in the new year, following the devaluation of the naira by the Central Bank of Nigeria (CBN).

The National President of the Congress, Alhaji Bobboi Kaigama, disclosed this at the end of the NUT’s National Executive Council meeting in the early hours of Sunday in Lagos.

Kaigama said wage hike had become necessary because the current devaluation had started impacting negatively on Nigerian workers.

He added that “the issue of wage is a dynamic thing. In stabilised economies, wages are directly proportional to the inflation trend of that country.

He, therefore, said “if the issue on devaluation persists, the Congress will have no option but to enter the New Year with a demand for increase in workers’ pay.”

Meanwhile, TUC, on Sunday, advised the Federal Government to address grievances of oil workers’ unions that threatened to embark on indefinite industrial action from Monday.

This plea was contained in a communiqué issued at the end of the NUT’s National Executive Council (NEC) meeting in Lagos.

The communiqué was jointly signed by the TUC president, Comrade Bobboi Kaigama, and General Secretary, Mr Musa Lawal.

The National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) had issued a notice to commence an indefinite strike on Monday if their grievances were not addressed.

Foreigners account for N1.25trn worth of Nigerian equities deals in 10 months

In 10 months to October 2014, foreign investors accounted for stock transactions valued at N1.25 trillion, compared with N964.74 billion worth of deals by domestic investors at the Nigerian Stock Exchange (NSE).

In the review 10 months period, domestic investors controlled 43.52 percent of equity market deals, while foreign investors accounted for 56.48 percent.

Overall, stocks valued at N2.216 trillion were traded in the period under review.

Foreign investor fund inflow into the equities market was valued at N575.26 billion, while foreign investors fund outflow was high at N676.67 billion.

The inflow includes purchase transactions on the NSE (equities only), while foreign portfolio outflow includes sales transactions or liquidation of portfolio investments through the stock market.

Total foreign transactions at the local bourse have risen from a low of N89.67 billion as of January 2014, to N153.28 billion at end of October.

Contrarily, total domestic transactions at the bourse have dropped from N92.3 billion in January 2014, to N21.82 billion in October 2014.

On monthly basis, the NSE polls trading figures from major custodians and market operators on their foreign portfolio investments.

As of October, foreign investors accounted for 87.54 percent of equities deals, while in the same month, domestic investors accounted for only 12.46 percent.

In October 2013, foreigner accounted 58.34 percent of equity market deals, while domestic investors were responsible for 41.66 percent worth of transaction at Customs Street.

Scarcity Looms as Oil Workers Begin Nationwide Strike

 

NIGERIA Union of Petroleum and Natural Gas Workers, NUPENG, and its Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, will today begin an indefinite nationwide strike, to protest the inability of the government to carry out Turn Around Maintenance, TAM, of the refineries and reduce pump prices of petroleum products in line with the slump in global prices of crude oil.

Other grievances include delay in the passage of the Petroleum Industry Bill, PIB; non-implementation of the Nigeria Oil and Gas Industry Content Development, NOGICD, Act to reflect Nigerians in management positions and expatriate quota law; appalling state of access roads to refineries and oil depots' facilities and insecurity in the country that has led to the death of members.

Other complaints are appointments in government agencies in disregards to succession planning, compulsory deduction from workers' salaries for the National Housing Fund, NHF; casualisation and contract staffing and unfair labour practice by companies and government agencies.

The grievances also include termination of appointment of the Port Harcourt Zonal Secretary of the association by Total Exploration and Production, Total E&P, Nigeria Limited; retardation of staff promotion in the Petroleum Technology Development Fund, PTDF; non-standardisation of nomenclature and collective bargaining agreement of the Nigerian Nuclear Regulatory Agency, NNRA, in line with what is obtained in other agencies in the oil and gas industry and refusal of the management of Addax/Petrostuff Nigeria Limited and Chevron/Sudelletra to recall sacked staff.

The oil workers issued a 14-day ultimatum to government October 31, 2014, threatening that at the expiration they would no longer issue any notice to government because the issues had been protracted and government and other affected companies had not shown any commitment to addressing the workers grievances. .

The unions had issued a statement that all levels of the unions had been fully sensitised and mobilised for the inevitable industrial actions that would affect every value chain in the upstream, midstream and downstream of the oil and gas industry.

CBN to issue new N100 banknote on Friday

THE commemorative N100 banknote unveiled recently by the President Goodluck Jonathan is to be officially issued into circulation by the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, on Friday.

The ceremony billed for the Abuja Branch of the CBN will be immediately followed by a simultaneous issuance of the currency across the branches of the bank.

The commemorative note, which is embedded with features to assist the visually impaired recognise genuine notes, also has other security features easily identifiable through look, feel and tilt of the currency note.

It will be recalled that the CBN Governor, at the unveiling of the new banknote, explained that the new note was designed with enhanced security to offer robust resistance against counterfeiting.

Authentication features of the note include window micro-optics, showing the national flag and numeral 100, indicating the value of the denomination and the attainment of the centenary period.

The new design retains the portrait of Chief Obafemi Awolowo both in the ink, which is the inter-glow level, as a portrait and also in a paper as a shadow image.

In addition, there is a spark feature of a rolling manila bar, which was the instrument of transaction during the slave trade era.

At the back side of the currency is the introduced Quick Response Code (QRC), a digital communication feature that highlights and sources all the information about the centenary.

With the QRC application, the barcode on the banknote can be scanned by users to read a brief history of Nigeria.

According to the bank, the commemorative note will circulate alongside the existing N 100 note.

Third quarter trade dropped by N359bn –NBS

The National Bureau of Statistics on Sunday released the trade statistics for the third quarter of this year, stating that the country recorded a N359.6bn or 5.4 per cent drop in merchandize trade from N6.65tn to N6.29tn.

The bureau, in the report, attributed the decrease to a fall in the value of exports and imports in the third quarter relative to the second quarter.

For instance, the report, noted that while exports declined by N202.7bn or 4.3 per cent to N4.47tn, the country’s imports also dropped by N157bn or 7.9 per cent to N1.82tn.

However, the report stated that regardless of this drop, the country’s balance of trade remained favourable at N2.65tn.

It said, “The total value of merchandise trade in Q3 2014 stood at N6.29tn from the value of N6.65tn recorded in the previous quarter of 2014. This indicates a decrease of N359.6bn or 5.4 per cent.

The decrease was a result of both a fall in the value of exports and imports in the third quarter relative to the second quarter.”