Again, Emefiele Forecloses Devaluation of Naira

Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele on Friday foreclosed speculations that the apex bank may further resolve to devalue the naira in order to stabilise its value at the foreign exchange market.

He said the CBN could not continue to take indeterminate policy decisions as there was currently no need to change the current exchange positions.

He stressed that the naira was presently appropriately priced.

The CBN also yesterday resolved to leave both the monetary policy rate (MPR) otherwise known as interest rate and banks' cash reserve ratio (CRR) unchanged at 13 percent with a corridor of +/- 200 basis points around the midpoint and 31 percent respectively.

33 ships scheduled to arrive at Nigerian ports

The Nigerian Ports Authority (NPA) has said that 33 ships are scheduled to arrive at the Lagos ports with various goods.

According to the shipping position released by the NPA in Lagos, the ships are expected to arrive at the ports between July 23 and August 9, 2015.

It noted that 12 of the expected ships will sail into the ports with containers, while another 12 will bring in food products.

The NPA explained that the food products included bulk malt, bulk sugar, buckwheat and frozen fish, while general cargo will arrive in five of the expected ships and the remaining four ships will bring in petroleum products.

The document showed that six ships carrying petrol and diesel had arrived at the ports.

FAAC allocates N518bn to three tiers of govt

 

 The Federation Accounts Allocation Committee on Friday allocated a total sum of N518.54bn to the three tiers of government for the month of June.

The allocation, when compared to the N403.02bn distributed in the previous month of May, represents an increase of N115.5bn or 28.67 per cent.

Addressing journalists shortly after the meeting, the Permanent Secretary, Federal Ministry of Finance, Mrs. Anastacia Nwaobia, said the allocation of N518.54bn was distributed from three major sub heads.

They are Statutory Allocation, N449.68bn; Value Added Tax, N62.39bn; and Exchange Gain, N6.46bn.

Nwaobia, who presided over the meeting, said from the statutory allocation of N449.68bn, the Federal Government received the sum of N218.92bn; states N111.04bn; local government councils N85.6bn, while the sum of N34.1bn was allocated to the oil producing states based on the 13 per cent derivation principle.

From the VAT distribution, she said the Federal Government got N9.35bn representing 15 per cent; states N31.19bn, while the local governments are to share the sum of N21.83bn.

She put the balance in the Excess Crude Account at $2.207bn, noting that the sum of N6.33bn was refunded by the Nigerian National Petroleum Corporation being debt owed the Federal Government.

On the revenue side, Nwaobia put the gross revenue received for the month at N485.95bn, noting that this was N161.89bn higher than the N324.06bn generated in May.

She said declaration of force majeure by Shell Petroleum Development Company, shut down of trunks and production pipeline at Nembe and Trans Forcado terminal ,impacted negatively on crude oil revenue.

Kano-Port Harcourt Train Services Begin

Nigeria-air-conditioned-trainTrain services from northern Nigerian State, Kano, to Pot Harcourt, the capital of Rivers State, have started, twelve years after the Nigerian government launched a revitalisation project of the railway.

The mixed service train will leave Kano to Port Harcourt every Thursday and from Port Harcourt to Kano every Tuesday.

At the commissioning ceremony of the new trains in Kano on Thursday, the Managing Director of the Nigeria Railway Cooperation (NRC), Adesiyi Asijuwade, said train services in Nigeria was back on track.

The first Kano-Port Harcourt mixed train services was in 1914, technically carrying both passenger and goods from the north to southern part of Nigeria.

However, in view of the ongoing efforts by the NRC, train services are now being resuscitated in phases across Nigeria.

Two 68-seater air conditioned modern first class passenger couches had been put in place to traverse a rail distance of 1,139 kilometres, stretching from Kano to Port Harcourt, with stops at some cities across Kano, Kaduna and Benue among other states in the south.

Kano State Governor, Abdullahi Ganduje, represented by the Speaker State House of Assembly, Alhassan Doguwa, assured the corporation of the State government’s continued support and patronage.

At the event, the Emir of Kano Muhammadu Sunusi II, urged the management of the NRC to ensure continuity of the train services at an affordable price in order to allow free flow of economic exchange between the south and northern parts of Nigeria.

During the British colonial era, train services were regular and one of the best means of transportation in Nigeria, but lack of maintenance of the infrastructure led to a huge setback in that sector, forcing business owners to rely solely on the use of trucks for the movement of goods from one part of the nation to the other.

The dearth in the sector further affected the movement of agricultural produce from farm settlements that were located in towns where the rail line traverse.

The resuscitation of the train services will no doubt bring succour to farmers that may need to move produce from Kano to states along the rail line and in southern Nigeria.

World Bank appoints first African woman Vice President

The Bank announced the appointment of Arunma Oteh as Vice President and Treasurer of the World Bank in a press statement issued Thursday July 203, 2015.

Ms. Oteh had served as the Director-General of Nigeria’s Securities and Exchange Commission, she resigned from the position in January 2015.

According to the Bank, as Vice President and Treasurer, Arunma will manage and lead a large and diverse team responsible for managing more than $150 billion in assets.

The Bank indicated that her top priorities will be to: (i) maintain the World Bank’s global reputation as a prudent and innovative borrower, investor and risk manager; (ii) manage an extensive client advisory, transaction and asset management business for the Bank; (iii) engage, in her capacity as one of the World Bank’s key representatives, with outside stakeholders including global private sector financial institutions, the financial media and the sovereign debt and reserve managers in client countries, as well as ratings agencies; and (iv) collaborate extensively with the Finance Partners throughout the World Bank Group, including with IFC and MIGA, expanding shared approaches, in particular around innovative financing for development and for key new projects.

Prior to joining the Securities and Exchange Commission (SEC) of Nigeria, Arunma was Group Vice President, Corporate Services, at the African Development Bank Group (AfDB). In this role she oversaw a number of departments, including human resources, information and communications technology, and institutional procurement. From 2001 to 2006 she held the role of AfDB Group Treasurer, where she led AfDB’s fundraising and capital market activities across the world. Earlier roles at the AfDB, which she joined in 1992, included trading room management, investment portfolio coverage, and public sector lending. She also held other positions in capital markets and lending during the course of her career at the AfDB. Arunma began her career in 1985 at Centre Point, where she executed debt and equity offerings in the Nigerian capital markets.

She earned a Bachelor of Science in Computer Science from the University of Nigeria and MBA from Harvard University.

Her appointment is effective September 28, 2015.

Nigerian share dealing fell in June as foreign buyers cut exposure

 

 Share dealing on Nigeria' s bourse fell to 203.45 billion naira ($1.04 billion) in June, down 9.8 percent from year ago, the stock exchange said on Friday, as foreign investors unnerved by a weaker naira currency cut exposure to equities.

The stock exchange said the value of shares traded by foreign investors in June stood at 69.65 billion naira, down from 118 billion naira during the same period last year, as domestic investors picked up the slack.

Diamond Bank H1 pretax profit falls 11.6 pct

 

Nigeria's Diamond Bank's first-half pre-tax profit fell by 11.6 percent to 14.19 billion naira ($71 million) compared with the same period last year, it said on Friday.

Gross earnings rose to 83.16 billion naira from 78.72 billion naira last year, the bank said in a statement, without giving a reason for the drop in profit.

CBN maintains MPR at 13%, CRR at 31%

 

The Central bank of Nigeria has retained the country's monetary policy rate at 13%, with Cash reserve ratio at 31%.

The CBN Governor Godwin Emefiele who announced this while briefing newsmen on the outcome of the monetary policy committee meeting held in Abuja, said the naira, which has lost around 15 percent against the dollar over the last year with an official devaluation in November and a de facto one in February, was appropriately priced at its current level of 197 to a dollar.

Emefiele who attributed the growth of the economy to the successful general elections held in April, however acknowledged the drop in the all share index of the stock market, due to factors leading to the build up for the elections.

He noted that fuel scarcity could dampen the economy and slow down investment, which could have an inflationary impact on the economy.

The country's foreign reserves has grown to $30bn, just as the declining value of the Naira has put pressure on inflation, which at 9.2 percent is above the upper limit of the apex bank’s range.

The bank has curbed interbank access to hard currency over the last few months in a bid to keep the naira on an even keel, although the restrictions have angered investors and frustrated companies that need dollars for imports.

EU commits N1.72bn to Nigeria’s social, financial data projects

European Union, EU, has confirmed that it had expended over eight million Euros (about N1.72bn) to support Nigeria’s efforts to generate, process and disseminate quality social and financial data nationwide.

Representative of EU delegation in Nigeria, Mr. Omotunde Oni, disclosed this at a 2-day Stakeholders’ workshop for the Validation of the Compendium of Statistical Terms and Framework for Capturing Administrative Statistics in Ministries, Departments and Agencies, MDAs, in Abuja.

On the projects to which the funds were committed, he said EU, under the 10th European Development Fund, EDF, provided support to the Federal Government Public Service Reform, SUFEGOR, programme as well as the Statistics in Nigeria project, a component of the Multi-donor Economy Management Capacity Project, EMCAP, implemented between 2003 and 2006.

Oni explained: “The EU’s contribution to EMCAP was eight million Euros. The expected result of EMCAP included the generation and dissemination of social and financial data for the country as well as the facilitation of period publication and accessibility of data.

According to him, capacity building of staff was done through EMCAP in form of training, re-training and study to benefit from best practices from other countries just as support of the EU was also provided for the SUFEGOR programme on the implementation of the National Strategy for the Public Service Reforms, NSPSR.

Naira depreciation on the top agenda as MPC meets today

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), which commences its 245th meeting today (Thursday) is expected to take critical decisions that would determine the fate of the naira, which has been under intense pressure at the parallel market in the past few weeks.

The two-day meeting holds in Abuja. The MPC, which has operational independence in determining monetary policy will be meeting for the fourth time this year. The naira, which sells for N196.95 to a dollar on the interbank market, goes for about N240 to a dollar at parallel market points across major cities in the country.

The pressure faced by the naira at the parallel market was provoked by the CBN’s restriction of importers of 41 products from accessing forex at the official foreign exchange market. Some of these items include rice, wheel barrows, head pans, cement, margarine, palm kernel/vegetable oil, meat and processed meat products, vegetable and processed vegetable products, poultry, private airplanes/jet, Indian Incense, toothpicks, tinned fish in sauce (Geisha/Sardines), among others.

The depreciation of the naira had heightened the debate on the devaluation of the naira.

Unilever Nigeria H1 pretax profit falls to 94 mln naira

Unilever Nigeria said on Thursday its half-year pretax profit fell to 94.07 million naira ($472,832), from 2.07 billion naira in the same period last year.

Turnover dropped to 28.72 billion naira in the six month period, compared 29.28 billion last year, the household consumer products maker said in a statement.

It said financial charges rose 137 percent to 1.61 billion naira in the period from 677.8 million naira the previous year.

Oil tanker industry calls for immediate end to Nigeria ship ban

 A ban on 113 oil tankers by Nigerian state oil company NNPC must be lifted immediately as no grounds have been given for the measure, the global oil tanker industry association said in a letter of protest.


NNPC issued a letter on July 15, citing a directive from President Muhammadu Buhari, which said the vessels, mainly VLCC crude oil tankers, were banned from calling at Nigerian crude oil terminals and also from Nigerian waters with immediate effect.

Industry association INTERTANKO, whose independent members own the majority of the world's tanker fleet, said in a letter to NNPC, dated July 22, that there were no "evidence or grounds" given for the ban.

CBN adjust Foreign Exchange peg again as Naira falls in black market

The Central bank of Nigeria adjusted its exchange rate peg on Thursday to 197 naira against the dollar from the 196.95 it set last week, data on the bank's website showed.

The adjustment is the fifth since the bank introduced a tight controls on the foreign exchange market in February. The bank said at the time it would sell dollars only at 198 naira to customers through the interbank based on direct orders by banks.

The local currency traded at 199.50 to the dollar on the interbank market, compared with the 197 per dollar rate it closed at on Wednesday.

At the parallel market, the naira slid to 243, down 0.83 percent from the previous day.

The persistent decline of the naira in the parallel market followed the introduction of new measures by the central bank last month, restricting access to hard currency at the interbank in a bid to conserve dwindling foreign exchange reserves.

Dealers said the outcome of a rate-setting meeting of the central bank due on Friday could affect the naira.

Obi resumes as acting NIMASA Director General

FORMER Executive Director, Maritime Labour and Cabotage Services, Nigerian Maritime Administration and Safety Agency (NIMASA), Calistus Nwabueze Obi, yesterday, assumed office as the acting Director-General of the agency.

He replaced Dr. Ziakede Patrick Akpobolokemi, who was sacked last week by the Federal Government.

According to a statement issued by NIMASA’s Deputy Director/Head Public Relations, Isichei Osamgbi, Obi brings over two decades experience in the public sector, law practice and the maritime industry to this new responsibility.

Born on May 1, 1964 Obi, who hails from Ihiala Local Government Area of Anambra State studied Law at the University of Nigeria Nsukka and was called to the Nigerian Bar in 1991 after duly completing the mandatory studies at the Law School.
He also holds a Post Graduate Diploma in Public Administration from the Ahmadu Bello University Zaria.

Lafarge Africa Plans 220mw Power Plant In Ogun

Lafarge Africa Plc has said that its newly constructed 220 megawatts (mw) power plant at Ewekoro, Ogun, will commence operations in October.

The executive vice president/managing director, Lafarge Africa Plc, Guilaume Roux, said that the project worth $400 million (N78.8 billion) was executed in partnership with the International Finance Corporation (IFC) and Wartsila.

He said that the IFC would provide financial and advisory services for the project through its Global Infrastructure Project Development Fund, InfraVentures, while Wartsila would build and manage the power plant.

Roux expressed the hope that the project would enhance 1.4 million households’ access to electricity and help mitigate energy problems of many firms in the country. He said that power project remained one of the company’s contributions toward providing an enabling environment for new investments and the nation’s economic growth.

Telcoms giant sues NCC, MTN

Etisalat is contending that MTN's 'Family and Friends' promo is posing a threat to its business survival.

Reports reveal that Etisalat Telecommunication Company has dragged the Nigerian Communications Commission (NCC) before a Federal High Court sitting in Lagos State over claims that the South African telecommunication company, MTN, has been given market advantage over it.

According to the Tribune, Aanu Ogunro, counsel for Etisalat, at Tuesday's proceedings appeared before Justice Mohammed Idris with an application seeking the leave of the court for the suit to be heard during the court's ongoing annual vacation.

Ogunro, while urging the judge to hear the suit, said it was urgent, claiming that if the decision of the NCC in favour of MTN was not reversed, it posed a threat to the business survival of Etisalat, according to sources.

"My lord, we have a motion ex-parte for leave to ask for the judicial review of the decision of the first respondent. The urgency in this matter is that the first respondent has made certain decisions that, if not urgently addressed, will affect the business of the applicant and it is capable of eroding the capital and the business of the applicant within a very short time," Ogunro said.

The Tribune reports that after hearing the lawyer, the judge granted the application to hear the suit during vacation and thereafter adjourned till August 3 to take the substantive application.

Etisalat, in the main suit, is seeking a redress of a decision allegedly taken by NCC allowing 30 per cent differential between MTN's off-net and on-net retail mobile voice tariffs.

According to sources, Etisalat said with the 30 per cent differential between its off-net and on-net retail mobile voice tariffs, MTN had been able to create what is called a 'calling club,' an example of which is its 'Family and Friends' promo.

NNPC warns oil marketers against diverting products

The state-run Nigerian National Petroleum Corporation (NNPC) has warned that petroleum marketers caught diverting products would have their Bulk Purchase Agreement with the Pipeline and Products Marketing Company (PPMC) revoked.

The NNPC said in a statement by its Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe, on Tuesday in Abuja that the new policy was part of efforts to sanitise the nation’s fuel distribution and supply system and eliminate the queues at fuel stations across the country.

The statement explained that the warning was issued in the face of persistent tightness of supply being experienced in the country despite huge load-outs from Petroleum Products Marketing Company (PPMC) depots by both major and independent marketers, a situation that has been traced to diversion.

Meanwhile, the PPMC has revoked the lifting license (Bulk Purchase Agreement) of three independent marketers for engaging in products diversion and sundry infractions.

According to Nasir Imodagbe, the Manager, Public Affairs and Community Relations of PPMC, the affected marketers are Funo Alfa Limited, Organiser West Africa Limited and Rich Oil Limited. The sanction is with immediate effect.

He warned the marketers to desist from products diversion, hoarding, and any other form of sharp practices as it would not hesitate to wield the big stick against any operator.

According to him, the company is closely monitoring the market and that the withdrawal of lifting licenses of erring marketers is a continuous exercise.

Signature : APA

Passengers Escape Death As Plane Tyre Bursts

The News Agency of Nigeria (NAN) reports that the aircraft, at about 3.00pm on Tuesday, had a bursted tyre while taxing off at the runway of the Murtala Muhammed Airport, Lagos.

The Nigerian Civil Aviation Authority (NCAA) has said the pilot of the aborted Lagos-Abuja Aero Contractors flight acted according to Standard and Recommended Practices (SARPs).

This is contained in a statement issued  by the General Manager, Public Affairs, NCAA, Mr Fan Ndubuoke in Lagos.

The News Agency of Nigeria (NAN) reports that the aircraft, at about 3.00pm on Tuesday, had a bursted tyre while taxing off at the runway of the Murtala Muhammed Airport, Lagos.

NAN reports that the Aero Contractors Airline Flight 180, which was carrying 141 passengers, had to make an air return to Lagos less than 30 minutes after departure.

Confirming the incident, the statement said the aircraft developed technical problem midway into the operation which necessitated the air return.

"The NCAA has received the occurrence report and wishes to say the Pilot has acted according to Standard and Recommended Practices (SARPs).

"All passengers were evacuated unhurt at the international wing of MMIA,Lagos, while the airline provided an alternative aircraft to ferry them to Abuja.

"Some of the passengers instead demanded for a refund of their fares while others were rescheduled for tomorrow morning,"the statement said.

It said the NCAA would promptly commence an inquiry into the incident and assured Nigerians that the Authority was very much committed to safety and security of passengers.