Fidelity Bank sees loan growth of 10 pct this year

  Nigeria's Fidelity Bank expects to grow loans by 10 percent this year, short of 27.1 percent growth last year, the mid-tier lender said on Monday.

Loans grew by 5.8 percent in the first half, with a currency devaluation contributing to a growth of 2.6 percent in its loan book, Fidelity Bank said presenting its half-year results.

Independent Marketers Call For Total Reform In Oil Sector

‎ The Independent Marketers branch of the National Union of Petroleum and Natural Gas Workers (NUPENG) has called for total reform of the oil and gas sector in the country.

The called was made by NUPENG Independent Marketers’ National Chairman, Mr Ogbodo Thompson, during the 3rd quadrennial conference of the body on Sunday in Benin.

He said this was the best possible way to address the corruption that was impeding the growth of the sector.
Thompson said “President Buhari must be cautious of the `racket’ and those who had formed themselves into `cabals’ in the sector in order to achieve maximum result.

“There must be total reform in the oil and gas sector.
“Needless to say that we know that it is difficult and could take a longer time to investigate organisations where syndicates or cabals operate.

“This is because members of such syndicates or cabals have to be identified first; until such persons are identified, not much can be realised and we cannot move forward.
“My advice to the current administration is to conduct thorough investigation and carry out a reform in the NNPC to propel growth of the nation’s economy.

“I believe our pipelines will work, subsidy or no subsidy, private depots or no private depots; I believe strongly that this administration can give the right leadership to achieve corruption-free NNPC.
“Millions of Nigerians have been denied decent living standard for too long.’’

The leadership of NUPENG also tasked the Independent marketers to strive to achieve the needed change in the energy sector.
The News Agency of Nigeria (NAN) reports that Thompson, along with members of the executive, returned unopposed as representatives during the association’s just concluded election.

Nigerian capital market lost N1trn since May 29 – PDP

The opposition Peoples Democratic Party (PDP) has said the Nigerian capital market lost over N1 trillion in the last two months, attributing it to poor economic management and lack of policy direction by President Muhammadu Buhari-led government.

In the same token, the opposition party accused President Buhari of unilaterally planning to borrow $2.1 billion from the World Bank without following due process.

PDP national publicity secretary, Olisa Metuh said this at a press conference in Abuja on Sunday.

Metuh, who faulted the absence of an economic team in the president’s recent visit to the United States, wondered why he included APC governors and former governors ‘with questionable performance’ as part of his entourage.

“The business community in Nigeria and indeed across the world noted with utter dismay the disgraceful treatment meted out on some Nigerian bankers and captains of industries by President Buhari during his US visit.

“Whereas the president has the right to decide who makes his entourage on such an important official visit, which visibly excluded National Assembly leaders, economic experts and had no woman, the manner with which he shamed and walked out Nigerians businessmen sends very wrong signal to international investors and poses great threats to inflow of direct foreign investment into our country. “These Nigerian businessmen were rejected by their president only for them to be valued by other presidents of African nations who led them into a meeting with President Barrack Obama in their own countries on account of their investments in those nations,” he said.

He disclosed that unlike Buhari’s visit to the US, President Obama travelled with ‘a formidable team of experts and key federal officials’ on his recent trip to Kenya.

According to him, absence of ministers to coordinate government affairs have left the nation’s economy sour.

Recall that the president had revealed in his visit to the US that he would announce his cabinet in September this year.

But for the PDP, the president is reneging on his earlier promise to unfold his cabinet two weeks after his inauguration on May 29.

“Nigerians should brace up for more economic losses ahead, a development which spells doom for the gains earlier achieved by the PDP administration,” Metuh said.

AMCON to publish list of loan defaulters

The Asset Management Corporation of Nigeria (AMCON) on Monday asked loan defaulters to immediately square their accounts or it would publish their names in line with a directive by the Central Bank of Nigeria (CBN).

CBN had, in April, directed lenders to give bad debtors three months to square their accounts, otherwise they would be named in the media and barred from taking part in Nigerian currency and government debt markets.

AMCON warned bad debtors on Monday that if loans remained unpaid, it will take steps to recover the debts including by legal means. It advised debtors not to assume it will forgive their indebtedness.

It also asked bad debtors to present restructuring plans, it said in a statement.

AMCON was set up in 2010 to absorb non-performing loans in exchange for government bonds, after the central bank injected $4 billion to rescue nine lenders from collapse six years ago.

CBN has since set an upper limit of 5 percent for non-performing loan ratio for the industry.

Before the 2009 bailout non-performing loans ratio stood in double digits.

Top Nigerian commercial lenders including Stanbic IBTC , Diamond Bank, First Bank and Skye Bank, have all given notices to bad debtors to pay up.

The bad bank this year said it had recovered 57 percent of bad debts, estimated around 1.8 trillion naira from over 12,000 debtors of commercial lenders in Africa’s top economy.

Nigeria: 2 refineries reopen, fuel imports to drop

The Federal Government said it would soon reduce its import of refined petroleum products as two of its key refineries in Warri and Kaduna are set to bridge the demand gap in local consump­tion.

Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, who dropped the hint at a briefing at the bank’s headquar­ters shortly after the July Mone­tary Policy Meeting in Abuja Fri­day said the resuscitation of the two refineries followed a series of meetings between the apex bank, the management of the Nigerian National Petroleum Corporation (NNPC) and the Federal Govern­ment.

Emefiele said while the Warri Refinery has commenced produc­tion, the Kaduna outfit is expect­ed to follow suit shortly.

The new plan comes in the wake of the Muhammadu Buhari administration’s reluctance to sustain the fuel subsidy regime, which many believe has enriched few while impoverishing millions of Nigerians.

Although he did not clarify if the CBN really injected fresh capital into the two organisations as it has done in agriculture, in­dustry and aviation sectors, the apex bank boss said the combined capacities of the two firms would likely reduce the estimated 30 million litres of refined products currently being imported into the country.

According to him, the resump­tion of production by the refiner­ies would reduce the pressure on both government expenditure and also help the CBN strengthen re­serves and build the much needed fiscal buffers.

“We have met with NNPC and Warri Refinery has begun produc­ing fuel. Kaduna will soon begin production and so we are going to see a drastic reduction in the import of premium motor spirit.”

Emefiele said part of CBN’s mandate was to build reserve, achieve strong exchange rate and maintain stability. He said the MPC in taking its decisions was guided by the need to stimu­late growth and development in the economy, pointing out that though some of such decisions may be tough on some stakehold­ers, they are always taken in the best interest of the economy and the citizens.

The CBN boss also restated the need for Nigerians to cut some of excesses to ensure the revival of the economy.

Nigerian Insurance Industry capitalisation hits ₦337bn

The Commissioner for Insurance, Fola Daniel, on Monday said the Nigerian Insurance Industry overall capitalisation has grown to ₦337 billion.

The commissioner announced this while presenting a keynote address at the 2015 Maiden Insurance Mega Conference in Abuja.

According to Daniel, the sector’s capitalisation grew from ₦98 billion in 2007 to ₦337 billion in 2010.

Daniel also said that the Gross Premium Income (GPI) increased to ₦303 billion in 2014 from ₦100 billion in 2007.

He said that the professionalism exhibited by practitioners in the sector contributed to the growth and making Nigeria the second largest insurance market in Africa.

According to him, the Industry rose from the fifth position it occupied in 2007 to second best in 2014.

He said the reasons for recording the tremendous growth in the industry was largely due to effective utilisation of all opportunities created by legislation through appropriate guidelines of National Insurance Commission (NAICOM).

“Now, we have better compliance with insurance legislation both by operators and consumers as there is substantial increase in the level of compliance especially, in compulsory Insurance” he said.

Daniel urged the federal government to constantly emphasise the importance of risk management through insurance mechanism.

“The Industry has potential to be a major driver for advancing national development.

“As a matter of fact, for a country to develop its economic endowments, it must first have supportive insurance Industry” he said.

6 ships laden with petroleum products waiting to berth in Lagos

Six ships laden with petrol and diesel have arrived Lagos ports waiting to berth, the Nigerian Ports Authority (NPA) stated in its daily publication – “Shipping Position’ on Monday in Lagos.

The NPA said in the document that 28 other ships were expected to arrive the ports between July 27 and August 7.

It explained that the expected ships contained: bulk rice, frozen fish, buck wheat, soda ash, containers, steel products, general cargo, bulk gypsum, diesel, base oil, petrol and bulk gas.

The document stated that 12 other ships were discharging buck wheat, general cargo, containers, bulk rice, bulk sugar, petrol and aviation fuel.

Federal Government plans to split NNPC into two entities

Reports say President Muhammadu Buhari plans to split the Nigerian National Petroleum Corporation (NNPC) into two entities,  one will be an independent regulator and the other one an investor vehicle.

His spokesman Femi Adeshina, told newsmen that President Buhari, who is riding on his promises to combat corruption, has made clear he wants to overhaul the oil sector, which provides the government with around 70 percent of its revenue.

He has said his government will trace and recover what he called "mind-boggling" sums of money stolen from the oil sector.


The NNPC currently represents national interests in oil and gas exploration, manages the energy sector and is the industry regulator in Africa's top crude producer.

It has been accused of failing to account for billions of dollars in the last few years although it has said that the money was not lost.

An NNPC source, who wished to remain unnamed, said the planned changes were long overdue.
"We can't continue to be a regulator, a revenue collector and a business, all rolled into one. That gives room for a lot of confusion, obfuscation and misrepresentation," he said.