Ministry of Petroleum Resource, Oil Marketers Set June 13 To End Fuel Scarcity

The Ministry of Petroleum Resources and oil marketers have resolved to end the current queues at petrol stations in most parts of the country by June 13, 2015.

At the end of a meeting with the oil marketers in Abuja, the Permanent Secretary in the ministry, Mr Taiye Haruna, said that the Pipelines And Product Marketing Company has been mandated to work with the oil marketers to ensure improved supply to retail outlets nationwide.

However, Mr Haruna identified the gridlock on the Oshodi-Apapa as one of the constraints to the improved supply of the product.

He explained that while there is adequate stock for more than 20 days, over 2,000 trucks are on the road while some have been on the road for the past ten days, all waiting to load the product.

Mr Haruna also explained that the ministry would work with the Lagos State Government, the petroleum tanker drivers and the National Association of Road Transport Operators to clear the lock-jam.

CBN adjusts FX rate peg to 196.95 per dollar in possible sign of looser currency regime ahead

The Central Bank of Nigeria on Thursday made a tiny adjustment to its exchange rate peg to 196.5 to the dollar, from the 197 it set in February after the currency's value was eroded by the fall in oil prices, data on its website showed on its website.

The bank adjustment, dealers said that the change was too small to be called a revaluation, particularly in the face of dwindling foreign reserves.

The Naira traded on thin volumes at 198.95 to the dollar on the interbank market on Thursday, before two large sales totalling $36.4 million were done at 196.95 naira, around the market close, dealer said, attributing the sales to the central bank. The unit traded between 215 to 218 in the parallel market.

One economist said the move may suggest the bank is testing out the market to see whether it is ready for a looser currency regime.

Ghana to scrap fuel subsidies by September: oil minister

The Ghanaian government says it will scrap the remaining fuel subsidies by September in a bid to reduce expenditure while ensuring stable supply to drive economic growth, Petroleum Minister Emmanuel Buah told Reuters on Wednesday.

The government has set aside 50 million cedis ($12.5 million) for subsidies in 2015 down from $150 million last year and took the decision in line with the terms of a three-year International Monetary Fund aid programme aimed at restoring fiscal stability.

Ghana exports gold, cocoa and oil and until 2013 its economy was one of the fastest growing in Africa, but it has slowed sharply due to a fall in commodity prices and a fiscal crisis seen in a high debt-to-GDP ratio and a weakening currency.

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Dangote Cement expands to Ethiopia with $500 million plant

Dangote Group on Thursday opened a $500 million cement plant in Ethiopia, one of Africa's fastest-growing economies where a construction boom has fuelled a shortage of cement.


Dangote Cement, owned by Africa's richest man Aliko Dangote, is seeking to expand its interests and develop cement plants across Africa to reach annual production of 62 million tonnes by 2017, up from 42 million last year.

The new plant is in the western Ethiopian district of Mugher at a site some 85 kilometres from the capital Addis Ababa, which is surrounded by green pastures but is quickly becoming one of the country's main industrial hubs.

The plant will initially produce 2.5 million tonnes a year in a country whose population of 90 million only consumes around 70 kilogrammes of cement per capita annually and the company said it plans to further expand its output.

Nigeria's annual per capita consumption is 127 kilogrammes."We are going to double this plant," Aliko Dangote said in a speech, adding a reliable power supply was one of the attractions that lured the investment to Ethiopia.
The Horn of Africa country's economy is expected to grow by 10.5 percent in 2015/16, fuelled by its rising service and agriculture sectors, as well as the construction of large-scale infrastructure projects such as dams.

Nigeria raises over $580m in treasury bills

Nigeria raised N115.85 billion (about $582 million) in treasury bills at lower yields in contrast to previous sale in May.

According to a statement by the Central Bank of Nigeria (CBN) on Wednesday in Abuja, total subscription for the notes stood at N253.82 billion at the auction, in contrast to N243.39 billion at its May 20 auction.
The bank sold N17.85 billion worth of 3-month bill at 9.79 percent yield, down from 9.95 percent at the previous auction.

It sold N18 billion worth of six month paper at 12.7 percent as against 12.75 percent at the last auction.
The apex bank sold N80 billion worth of the one-year note at 12.99 percent, compared with 13 percent last month.

Environment Ministry Terminates N9.2bn Clean Cook Stove Contract

The Federal Ministry of Environment has terminated the controversial N9.2 billion clean cook stoves and wonder bags project, initiated by the former Goodluck Jonathan administration, for rural women under the national clean cooking scheme.
 

The Permanent Secretary of the Ministry of Environment, Mrs Fatima Mede, said the German contractor who was given three months to supply 750,000 units of the stove and 18,000 wonder bags under the project had failed on his part to deliver the items.

Mrs. Mede noted that five billion Naira had been released to the Ministry by the government out of which the contractor was paid N1.3 billion.

She urged Nigerians not to be apprehensive over the remaining N3.7 billion in the ministry’s coffers, which according to her remains untouched.

The Permanent Secretary noted that the stoves which were to be assembled locally were meant to provide jobs to Nigerians among other benefits.

According to the former administration, the programme was launched to engender clean cooking culture amongst rural women, in order to reduce and eliminate cooking with solid fossil which is considered detrimental to health.

N8BN Fraud: CBN staff own posh cars, petrol stations, palatial buildings, court told

The court trial of some Ibadan based bankers indicted over the theft of N8 billion worth of mutilated banknotes was yesterday told of the stupendous wealth of the suspects.

The suspects, including a self-acclaimed illiterate bank staff were alleged to have acquired petrol stations, shopping malls in Nigeria and abroad, exotic cars, supermarkets, among others.

Mr. Ayodeji Alase, one of the suspects and a holder of primary six certificate, was alleged to have acquired property including a duplex at Oluyole, a shopping complex, warehouse at Podo, Challenge and a fenced plot at Dugbe in Ibadan.

He was also alleged to own a four flat building at Apeye, two plots of land, five-bedroom flat in Apete, Ibadan, a supermarket at New Garage, Apata Expressway.

However, a mild drama took place in the court as Alase, delayed the proceedings of the court, claiming he did not understand English language after working for years at First Bank Plc as a cash officer.

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Fuel Depot Owners Blame Scarcity on Banks, CBN Regulations

Owners of fuel depots under the aegis of Depot and Petroleum Products Marketers Association (DAPPMA) have blamed the current fuel crisis on banks and the regulations issued by the Central of Bank of Nigeria (CBN), which imposed credit ceilings on fuel importers.

The depot owners and marketers have also reiterated the need for the administration of Muhammadu Buhari to remove fuel subsidy, stressing that the subsidy scheme only benefits foreign refineries where the petroleum products consumed locally in Nigeria are being sourced.

The Executive Secretary of DAPPMA, Mr. Olufemi Adewole, confirmed in a statement yesterday that this is the first time since the introduction of the subsidy scheme that marketers will not have ready and easy access to fuel import loans.

According to him, this is also the first time that commercial banks will notify importers that based on the regulations issued by the CBN, the importers have attained their credit ceilings with their various banks and would have to make some refunds on the existing loans prior to being funded for petrol imports.

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NERC Issues New Electricity Tariff for Nigeria, Effective July 2015

The Nigerian Electricity Regulatory Commission, NERC, has issued new electricity tariffs residential homes in Nigeria to become effective on 1 July 2015.

The tariff had already been implemented for industrial and commercial electricity consumers since 1 April 2015.The new tariffs are in the Multi-Year Tariff Order, MYTO, 2.1 for the period 1 April 2015 to December 2018 and they replace the tariffs in MYTO 2 for the period 1 June 2012 to 31 May 2017.

For Ibadan DISCO, the fixed monthly charge for residential R2 category is N625 in 2015, N750 in 2016, N900 in 2017 and N1,080 in 2018. The energy charge will rise from N14.23 per kWh to N18.00 per kWh, an increase of 26 per cent, on 1 July 2015.

The energy charge will be N17.36 per kWh in 2016, N19.60 per kWh in 2017 and N17.93 per kWh in 2018.However Eko, Ikeja and Benin DISCOs, the fixed monthly charge for residential R2 category is N750 in 2015, N900 in 2016, N1,080 in 2017 and N1,296 in 2018.

The energy charge for Eko DISCO will rise from N12.87 per kWh to N18.75 per kWh, an increase of 45 per cent, on 1 July 2015. The energy charge will be N18.01 per kWh in 2016, N19.39 per kWh in 2017 and N16.42 per kWh in 2018.

The energy charge for Ikeja DISCO will rise from N13.61 kWh to N14.96 per kWh on 1 July 2015. The energy charge will be N14.50 per kWh in 2016, N13.88 per kWh in 2017 and N12.85 per kWh in 2018.For Benin DISCO the energy charge will rise from N12.54 per kWh to N18.46 per kWh, an increase of 47 per cent, on 1 July 2015.

The energy charge will be N17.02 per kWh in 2016, N18.23 per kWh in 2017 and N15.23 per kWh in 2018.

NERC believes that an estimated bill should not exceed 200kWh in a month and if the DISCO believes the customer uses more than 200kWh per month, the DISCO should as a priority provide the customer with a meter.

Stocks zigzag on mixed sentiments, ASI records modest gain

The equities market closed today on a positive note, as NSE ASI appreciated by 0.05% to close at 34,061.89 basis points, compared with the 0.77% depreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at -1.72%

Market breadth closed negative as VONO  led 26gainers against 19losers topped by INTENEGINS at the end of today’s session- an improved performance when compared with previous outlook.

Market turnover closes negative as volume declined by 34.23% against 52.10% decline recorded in the previous session. ZENITHBANK, ETI and UBA were the most active to boost market turnover. NB and GUARANTY top market value list.

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Official Rate Moves to N196.95/$1 as High dollar demand eases

A review of today’s parallel market activities and oil price behaviour highlights the following:

  •         Today, the naira traded at N217.00 to a dollar with no price changes as the exchange rate remains flat compared to its previous day value. Today’s fieldwork shows that major participants constitute those buyers who must do business in foreign currency.

  •         The existing low level of activities remains unchanged as only autonomous demand levels exist.

  •         The Naira exchanged against the pounds sterling around N331/£1 with no major drift while Naira/Euro rate traded at N242/€1.

  •         Official CBN dollar rate moves to N196.95/$1.

  •         Brent crude price was at $65.05 per barrel as at 10.28ET.


EXCHANGE RATE
Today, the naira exchanged at N217.00 to a dollar. The Nigerian currency closed flat when compared to its previous day value. The official Naira/USD exchange rate, however, moves to 196.95/$1 to reflect the dwindling demand for dollar.

The value of the naira has since the initial CBN devaluation in November 2014 traded between the band of N173 and N230 to USD1. The graph below shows in pictorial form the volatility of the naira against the dollar in the black market for the last 3weeks as it compares with the official rate.

Official Rate Moves to N196.95/$1 as High dollar demand eases

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Angolan oil minister says $80 may be right price for crude

Angolan Oil Minister Jose Botelho de Vasconcelos said on Tuesday that $80 per barrel may be the right price for crude and that he would like oil prices to rise.

Brent crude oil for July was up 40 cents at $65.28 a barrel by 10:30 GMT.

Oil ministers from the Organization of the Petroleum Exporting Countries (OPEC) meet on Friday in Vienna to decide on production policy for the next six months.

IPMAN seeks police protection, begins 24-hour sale of fuel

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has appealed to the Inspector-General of Police to provide adequate protection for its members, to enable them to sell fuel for 24 hours.

Chinedu Okoronkwo, IPMAN’s President, made the appeal on Monday in Abuja.

Okoronkwo said the appeal had become necessary following the unions directive to its members to sell fuel for 24 hours to clear the queues that had persisted across the country.

The president, who expressed concern over the queues, said the measure was to ease the scarcity and make the product available to motorists.

The Vice President IPMAN, Abubakar Magandi, in a separate interview, said queues persisted in most of the filling stations because most depots did not have the product.

Magandi said the problem of loading slowed down the process of lifting the products, causing the queues to persist.

He also refuted the allegation that members were hoarding the product to hike the price.

Prices of perishable items crash in Kano

Prices of perishable items in Kano have crashed due to excessive hot weather, the News Agency of Nigeria (NAN) reports.

Some of the perishable item sellers told NAN in Kano that they had no option but to cut down the prices to avoid waste of the produce.

Malam Sani Usman, one of the sellers at ‘Yankaba market, Kano, said they had to bring the prices down for the produce to be disposed.

He said the current weather was not friendly to the commodities, adding that sellers had no facilities to keep the produce for a longer period.

“So, the only way to avoid waste is to sell the commodity below its price,” he said.

Another seller of perishable items, Malam Baballe Ali, said he had been operating at a lost due to the hot weather.

Meanwhile, a measure of fresh pepper is sold for N250 as against N500 due to the weather, while that of fresh tomatoes is sold for N150 as against N250.

EFCC sues Central Bank of Nigeria officials over N8bn fraud

Nigeria's anti-corruption body Economic and Financial Commission, EFCC, on Tuesday charged officials from the Central bank of Nigeria and some commercial banks in court over an 8 billion naira ($40 million) currency fraud.

A counsel to the EFCC, Rotimi Jacobs, while speaking with newsmen, said the officials had pleaded not guilty to the charges.

He said the court however, ordered that they be detained in prison pending their bail applications.

It would be recalled that the EFCC charged six CBN officials and 6 commercial bank staff accused of currency theft and recirculating naira notes intended for destruction at a court in Ibadan, the Oyo state capital.

NBS says FG, states, LGs expenditure on GDP grew by 42.81% in 2015

The National Bureau of Statistics (NBS) says the final expenditure on Gross Domestic Product (GDP) of the three tiers of government in the first quarter of the year is 42.81 per cent.

A statement issued in Abuja by the Statistician-General of the Federation, Yemi Kale said that the figure was higher than the -7.53 per cent and 16.56 per cent recorded in the first and fourth quarters of 2014 respectively.

According to the NBS, during the first quarter of the year, the general government final expenditure grew by 42.81 per cent year-on-year in real terms, higher than the -7.53 per cent in the first quarter of 2014.

It noted that the -7.53 per cent was also lower than 16.56 per cent recorded in the fourth quarter of 2014, adding that the shares recorded in the first quarter were however higher than the shares recorded in first quarter of 2014 which was put at 6.0 per cent.

Ivorian cocoa arrivals seen at 1,455,000 T by May 31: exporters

Cocoa arrivals at ports in top grower Ivory Coast reached round 1,455,000 tonnes by May 31 since the start of the season on October 1, exporters estimated on Monday, down from 1,460,000 tonnes in the same period of the previous season.

 

Exporters estimated around 25,000 tonnes of beans were delivered to the West African state's two ports of Abidjan and San Pedro between May 25 and 31, down from 32,000 tonnes during the same week last year.

Egypt signs exploration deal with Italy's Eni worth $2 bln

Egypt's oil ministry said on Monday it had signed an energy exploration deal with Italy's Eni worth $2 billion following an MOU signed in March during an investment conference.

The deal paves the way for the modification of some previous deals between the ministry and Eni that include gas price adjustments, the ministry said in a statement.

Eni will be able to explore in Sinai, the Gulf of Suez, the Mediterranean and areas in the Nile Delta.

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The Italian company will invest $1.5 billion over four years in exploration, development and operation in Sinai and the Delta.

A further $360 million will be invested in digging five new wells in northern Port Said; $80 million on digging a well in Sinai and repairing an existing one; and $40 million in the Gulf of Suez.

The agreement also includes signature bonuses totalling $515 million that would partly repay some of Egypt's debts to Eni.

CBN Press Statement on Theft of Currency Notes

The Central Bank of Nigeria (CBN) would like to inform the general public of the chronology of events that led the Management of the CBN to handover some unscrupulous staff to the Economic and Financial Crimes Commission (EFCC) for prosecution.

During a routine internal audit of the Bank’s Cash Destruction activities in September 2014, the CBN Briquetting Panel comprising Senior Bank Staff from different branches noticed some anomalies at the Ibadan Branch, and immediately reported this to the Bank’s Management. On further investigation ordered by the Governor, it was discovered that a systematic scheme, which has been on for several years, was being run in which mutilated higher denomination notes originally meant for destruction were swapped with lower denomination currencies. This practice known as interleafing, basically labels a box with a higher value than its true content.

As soon as the Bank’s internal investigations concluded beyond reasonable doubt that some wrongdoing had occurred, the affected members of staff who are middle-level officers were, depending on gravity of offence, either summarily dismissed or immediately placed on indefinite suspension on 21 October 2014, and all handed over to the EFCC for further investigation and prosecution. The CBN has also conducted a nationwide audit of all 37 branches of the Bank and found that this was an isolated scheme at Ibadan Branch. The Bank will continue to collaborate with the EFCC to ensure that affected CBN staff, as well as their accomplices in some commercial banks, are brought to justice.

Signed

Ibrahim Mu’azu,

Director, Corporate Communications

Multinational companies cheat Africa out of billions of dollars

Africa was cheated out of US$11 billion in 2010 through just one of the tricks used by multinational companies to reduce tax bills, according to new Oxfam report, ‘Africa: Rising for the few,’ released today. This is equivalent to more than six times the amount needed to deliver universal primary healthcare in the Ebola affected countries of Sierra Leone, Liberia, Guinea and Guinea Bissau.  

Oxfam’s findings come as African political and business leaders get set to attend the 25^th World Economic Forum Africa in South Africa. The main theme of the meeting will be how to secure Africa’s economic rise and deliver sustainable development. Reforming global tax rules so that Africa can claim the money it is due – and which is needed to tackle extreme poverty and inequality – is critical if the continent is to continue its economic rise.

Oxfam is calling for all governments to send their Head of State and Finance Ministers to the Financing for Development Conference in Ethiopia, in July. The Addis conference will set out how the world will finance development for the next two decades and is an opportunity for governments to start developing a more democratic and fairer global tax system.    

Winnie Byanyima, Oxfam International’s Executive Director said:  “Africa is haemorrhaging billions of dollars because multinational companies are cheating African governments out of vital revenues by not paying their fair share in taxes. If this tax revenue were invested in education and healthcare, societies and economies would further flourish across the continent.” 

In 2010, the last year for which data is available, multinational companies avoided paying tax on US$40billion of income through a practice called trade mispricing – where a company artificially sets the prices for goods or services sold between its subsidiaries to avoid taxation. With corporate tax rates averaging out at 28 percent in Africa this equates to $US11 billion in lost tax revenues. 

Trade mispricing is just one of the ways multinational companies avoid paying their fair share of taxes. According to UNCTAD, developing countries as a whole lose an estimated US$100billion a year through another set of tax avoidance schemes involving tax havens.  

Companies also lobby hard for tax breaks as a reward for basing or retaining their business in African countries. Tax breaks provided to the six largest foreign mining companies in Sierra Leone add up to 59 per cent of the total budget of the country or eight times the country’s health budget.

Byanyima added, “African leaders must not sit by while international tax reforms are agreed which give multinational companies free reign to sidestep their tax obligations in Africa. Political and business leaders must put their weight behind the ever louder calls for the reform of global tax rules. African nations must also introduce a more progressive and democratic approach to taxation – including calling a halt to tax exemptions for foreign companies.”  

 

Existing international efforts to tackle corporate tax dodging such as the BEPS (Base Erosion and Profit Shifting) process, led by the Organisation for Economic Cooperation (OECD) for the G20, will leave gaping tax loopholes that multinational companies can continue to exploit across the developing world. Many African nations have been shut out of discussions on BEPS reform and will not benefit from them as a result.