Nigerian naira street rate well below central bank's at Christmas

The Central Bank of Nigeria says the post-devaluation band for the naira is "appropriately priced", but black market hawkers out on the street are trading it at around 3-5 percent below its floor in the run-up to Christmas.

Despite an 8 percent devaluation of the target band and efforts last week to crack down on currency speculation by squeezing liquidity, the naira remains at record lows.

But while the central bank and the interbank markets argue over the naira's fair value, it's harder to argue with the price on the streets where many dollars are bought and sold.

Nigeria devalued its currency and widened its target trading band to 160-176 against the dollar, but few analysts believe that can hold, given a steady decline in reserves.

Several street changers, mostly Muslim northerners from the Hausa and Fulani ethnic groups, told Reuters they were trading a dollar for 180-182 naira the day before Christmas.

Ghana producer price inflation falls to 37.5 pct yr/yr in Nov-Stats office

 

Ghana's year-on-year producer price inflation fell to 37.5 percent in November from a revised 40.1 percent in October, brought down by lower gold prices.

The national statistics office said on Wednesday, that the figures give an indication of the fiscal challenges facing the West African country, whose GDP growth is starting to slow after years of rapid expansion thanks to exports of gold, cocoa and oil.

Inflation in the mining and quarrying subsector, of which gold is a vital component, fell 8.1 percentage points from the October rate of 48.7 percent, government statistician Philomena Nyarko told a press conference in Accra.

Inflation in manufacturing, which constitutes more than two-thirds of the total industry index, also fell by 2.1 percentage points to 39 percent. The utilities subsector recorded an inflation rate of 27.6 percent, down 0.2 percent over the previous month.

SEC, NBA to Partner on Capital Market Development

The Securities and Exchange Commission (SEC) Nigeria is to collaborate with the Nigeria Bar Association (NBA) to set up a standing committee as a means to working together for the development of Nigeria’s capital market.

Announcing this when the President of the NBA, Augustine Alegeh (SAN) and some members of his executive paid a courtesy call on her in Abuja, Director General of the SEC, Arunma Oteh said the partnership is essential for the two organizations and the country in general to drive the present administration’s transformation agenda.

Oteh said Nigeria’s capital market has had big issues that have affected the integrity of the market, saying that the timing is perfect for the SEC and the NBA to look at ways of collaborating in the interest of investors and the country’s economic development.

The DG however commended the NBA for being partners in the development of the capital market in Nigeria adding that the Commission is committed to raising financially literate citizens in the country.

Speaking earlier, the NBA President, Augustine Alegeh (SAN) expressed the interest of the NBA in working with the SEC in several areas in a bid to improve the country’s economic development.

Already, he said the Association has set up a committee on legislative advocacy which offers services free of charge, to ensure that proper laws are in place no matter whose ox is gored.

Arab OPEC sources see oil back above $70 by end-2015

Arab OPEC producers expect global oil prices to rebound to between $70 and $80 a barrel by the end of next year as a global economic recovery revives demand, OPEC delegates said this week in the first indication of where the group expects oil markets to ‎stabilise in the medium term.

The delegates, some of which are from core Gulf OPEC producing countries, said they may not see - and some may not even welcome now - a return to $100 any time soon.

But they believe that once the breakneck growth of high cost producers such as U.S. shale patch slows and lower prices begin to stimulate demand, oil prices could begin finding a new equilibrium by the end of 2015 – even in the absence of any production cuts by OPEC, something that has been repeatedly ruled out.

A separate Gulf OPEC source said: "We have to wait and see. We don't see 100 dollars for next year, unless there is a sudden supply disruption. But average of 70-80 dollars for next year – yes.”

The comments are among the first to indicate how big producers see oil markets playing out next year, after the current slump that has almost halved prices since June. Global benchmark Brent closed at around $60 a barrel on Monday.

Their internal view on the market outlook will provide welcome insight to oil company executives, analysts and traders, who were caught out by what was seen by some as a shift in Saudi policy two months ago and have struggled since then to understand how and when the market will find its feet.

Nigerian crude oil exports to fall to 1.87 mln bpd in Feb -lists

 

Nigerian crude oil exports in February are set to fall to around 1.87 million barrels per day (bpd) from around 2.03 million bpd in January shipping lists showed on Tuesday.

The export levels are lower for February due to lower exports of the benchmark Qua Iboe grade, which traders said is to go under maintenance.

Angola central bank leaves interest rate at 9 pct

Angola's central bank left its benchmark lending rate unchanged at 9 percent for the second straight month on Tuesday.

Ivory Coast cocoa helped by rain, mild Harmattan wind

Unusually heavy rain and a mild Harmattan dry wind last week in Ivory Coast's main cocoa regions brightened the outlook for the last stage of the main crop, but the dry season elsewhere could tighten supply, farmers and analysts said on Monday.


Ivory Coast, the world's top cocoa producer, is in the dry season that runs from mid-November to March, when the dusty Harmattan wind that usually blows from the Sahara from December to March hits cocoa farming.

The 2014/15 main crop harvest opened on Oct. 1 and farmers expect an abundant harvest of quality beans until the end of January.

In the western region of Soubre, in the heart of the cocoa belt, an analyst reported 43 millimetres of rain compared with none the previous week and a mild Harmattan.

CBN sells dollars, but Naira still down

The Central Bnak of Nigeria today sold a small amount of dollars to some lenders on Monday to calm the market and prop up the local currency value, but the naira weakened 0.21 percent on the day owing to strong demand from some end-users.


Unit of Royal Dutch Shell sold an undisclosed amount of dollars to some lenders, while Eni sold $300,000.
Traders said transactions remained sluggish since the central bank decreed that banks should not hold part of their assets in dollasr, and that dollars purchased on the interbank market can only be held for up to 48 hours.

World Bank to Support Nigeria's Power Sector with US$1.75 Billion Over The Next Four Years

 

The World Bank has pledged US$1.75 billion over the next four years to support the Nigeria Power Sector Reform.

This was disclosed by the Bank’s Country Energy Task Team Leader for Nigeria, Mr. Eric Fernstrom at a capacity building program on Post Privatization Monitoring for the Power Sector jointly organized by the World Bank and the Bureau of Public Enterprises (BPE).

Mr. Fernstrom said the $1.75 billion was 25 percent of a total of US$7 billion earmarked for Nigeria in the next four years.

He noted that the Bank was greatly encouraged to offer the additional assistance to ensure that the reform objectives were realized as a result of the transparency exhibited in the transaction process and the robust post reform measures put in place by the NCP/BPE.

The two-day workshop held at Ibom Golf Resort, Uyo, Akwa Ibom State sought to expose participants to the techniques, methods and information sources for effective Post Privatization Monitoring and Evaluation of the PHCN successor power companies.

The workshop was also meant to enable participants analyze performance targets using relevant tools as well as expose them to strategies for effective engagement and collaboration with relevant stakeholders.
The workshop also attracted participants from critical sector stakeholders; including the Nigerian Electricity Regulatory Commission (NERC), Presidential Task Force on Power (PTFP), Transmission Company of Nigeria (TCN), the Office of the Vice President; amongst others.



Reviewing the programme, the Director General of the BPE, Mr. Benjamin Dikki ranked it very high in value addition and stated that it has greatly increased the capacity of the participants to effectively monitor power companies. He thanked the World Bank for sponsoring the programme and for its sustained support to the Bureau of Public Enterprises over the years.

The DG was represented by the Director of Post Privatization Monitoring Department, Mr. Ibrahim Kashim.

NERC, DMBs, CBN SIGN MOU ON STABILIZATION FUND AS NEW TARRIFF TO TAKE EFFECT TOMORROW

 

The Nigerian Electricity Regulatory Commission, NERC, says the new electricity tariff will come into effect tomorrow. 

Announcing this to Newsmen in Abuja, at the signing of the MOU on the electricity stabilization fund, with the deposit money banks in the country and facilitated by the Central Bank of Nigeria, Chairman NERC, 

Dr Sam Amadi, however said the facility will erode the payment of the new tariffs by Nigerians for the next 6month, after which it will be reviewed.

He said the MOU with DMBs, is to ensure the sector is viable and reliable, while there will be an aggressive improvement in electricity generation and distribution across the country

Meanwhile, commending the commitments of the DMBs in the revival of the power sector, CBN Governor, Godwin Emefiele, said clearing the debt will encourage an efficient and effective gas supply system. He added that the facilitation is worth over N213 billion. 

Imohedet.blogspot.com recalled that the CBN had last month, offset N36.9 billon legacy debt owed to gas suppliers by the power sector under the defunct Power Holding Company of Nigeria (PHCN) over the last few years, which was part of the N213 billion intervention fund.