NERC insists on Feb 1 for new tariffs

The Nigerian Electricity Regulatory Commission has insisted that the new tariffs for different categories of power consumers would begin on February 1, 2016.

NERC, which said this in a statement by its Head, Public Affairs, Dr. Usman Abba-Arabi, noted that the controversial N750 fixed charge would also cease to be effective from that date.

The statement quoted NERC’s Acting Head, Dr. Anthony Aka, as saying that the removal of the fixed charge was in response to complaints from consumers.

The statement reads: “NERC wishes to reiterate that the take off date of the new electricity tariff (MYTO 2015) still remains February 1, 2016 and it is in view of this that the Commission has told distribution companies to abide by its directive not to connect new customers without first providing them meters.

The acting Head of the Commission Dr. Anthony Akah, mni, said that the removal of fixed charge under the new tariff regime “was in response to electricity consumers’ complaints and a measure to ensure electricity distribution companies improve on service delivery as their income is dependent on the quantity of electricity used by their customers.”

Akah said that the Commission will continue to engage stakeholders including members of the National Assembly (NASS) to address their concerns on the new tariff regime. “NERC holds National Assembly in high esteem and we are sure that both institutions are working to ensure that the National and consumer interests are protected.”

He explained that there are inbuilt consumer protection mechanisms and incentives for improved service delivery by the DISCOs and fair return on investment in the new Tariff Order.

The Commission in implementing this cost reflective tariff will effectively monitor and enforce all service delivery agreements in the new tariff order.

No fuel subsidy in 2016 Budget – Amaechi

Amidst speculations and reports on the removal of petrol subsidy this year, the Minister of Transportation, Hon. Chibuike Rotimi Amaechi, yesterday confirmed the removal of subsidy on petrol, saying it was not included in the 2016 budget.

He said this at the Business Eye Roundtable discussion in Lagos.

Amaechi, who was among the panelists, said this was part of the policies and steps taken by the federal government to stem the bleeding of the economy.

He said: “For the federal government, if you know the president, he doesn’t support borrowing but he has catapulted to borrowing. If you know the president, he doesn’t support removal of subsidies, we are not saying it but you know it is there.

“We are not saying oil subsidy has been removed, but check it in the budget; it is not there so where would he pay from? And if you know the president very well he would not spend anything outside the budget.”

The minister added: “I am one of the vocal ministers who can say it has been removed but I am just saying it is not in the budget.”

Amaechi’s statement came as a reaction to the Chief Executive Officer, RTC Advisory Services Limited, Mr. Opeyemi Agbaje who urged the federal government to put in the right polices which would tackle the economic deficits in the country.



    
    
    

Missing $49bn: FG to probe oil sector – Amaechi

 

Minister of Transport, Rotimi Amaechi, has revealed that the Federal Government will beam its searchlight on the oil sector after the ongoing arms deal probe.

He disclosed this during a round-table discussion organised by the Business Eye in Lagos.

According to Amaechi, the Federal Government would probe the missing $49bn oil revenue, that erstwhile Governor of the Central Bank of Nigeria, Sanusi Lamido, alleged was not remitted into the Federation Account by the Nigerian National Petroleum Corporation, NNPC.

“Even before Sanusi and President Goodluck Jonathan began to quarrel, I had to leak that letter. Sanusi wrote that letter to the President in September, I leaked it sometime in January, and that letter was personal: ‘Mr. President, $49bn was missing,’ and I got a copy of that letter.

“Instead of the Federal Government to say we are going to address this, they began to debate with the CBN governor and Nigerians joined in the debate. Oh, it is not possible. Now, they have seen that it’s possible,” he said.

Nigerian Stock Exchange says it can fund N1.8tr budget deficit

The Nigerian Stock Exchange (NSE) says the capital market has the depth to finance the national budget deficit and drive investments in key national infrastructure.

Addressing journalists at the NSE in Lagos yesterday, Nigerian Stock Exchange (NSE), Chief Executive Officer, Mr. Oscar Onyema said the sovereign debt market has been on the rise in spite of the current downtrend in the equities market.

He said capital market has the capacity to fund the 2016 budget deficit, which is estimated at N1.8 trillion and to further support the realisation of the Medium Term Expenditure Framework of the government.

While the equities market was in the red in 2015, the NSE bond market rose by a third. Market capitalization for the debt market jumped by 32.7 per cent to N7.14 trillion. The Federal and State Governments raised N76.5 billion and N35.8 billion in debt capital, respectively. Companies also took to the debt market to raise a total of N112 in seven new listings.

According   to him, apart from the federal government raising debt capital directly from the market, other government agencies could be unbundled and made to access the capital market for funds so as to free some cash for the government to fund other areas of development.

Crude oil falls to $30 a barrel

U.S. crude oil futures fell in Asian trade on Friday, heading lower after posting the first significant gains for 2016 in the previous session, as the prospect of additional Iranian supply looms over the market.

West Texas Intermediate (WTI) was down 48 cents at $30.72 a barrel . On Thursday the contract rose 72 cents, or 2.4 percent, to settle at $31.20. It hit a 12-year low of $29.93 earlier this week.

WTI is on track to post a third consecutive weekly loss, down more than 6 percent. The contract is down nearly 18 percent from a 2016 high on January 4.

Brent crude was down 20 cents at $30.68 a barrel. The global benchmark settled up 72 cents, or 2.4 percent, at $31.03 a barrel on Thursday, after falling to $29.73, its weakest since February 2004.

Over the previous eight sessions, Brent had lost about $7 a barrel, almost 20 percent.

Western sanctions on Iran are expected to be lifted within days, potentially paving the way for more crude oil exports from the country, under a landmark agreement on Tehran's disputed nuclear programme.

Nigeria stocks hit 3-1/2-year low as funds sell on naira woes

The All Sahre Index of the Nigerian Stock Exchange tumbled 3.4 percent yesterday and hit its lowest point in almost 3-1/2 years, spooked by the weak outlook for the currency.

The share index, which has the second-biggest weighting after Kuwait on the MSCI frontier market index, has fallen for five straight days, sliding below the psychologically important 25,000 point line not seen since September 2012.

At the market close, the index was down 3.4 percent at 24,239 points. The index has dropped 12.4 percent in the first nine days of trading this year.

CEO of the Nigerian Stock Exchange Oscar Onyema said the bourse expected 2016 to be challenging for the market after the index shed 17.4 percent last year with losses continuing into this year, as oil prices plunged and the domestic economy faltered.

Foreign buyers, who accounted for 54 percent of trading volumes, were on the sidelines owing to the lack of clarity on Nigeria's forex policy, highlighting naira weakness as a deterrent to a market rally in 2016, he said.

SEC says E-dividend will reduce infractions in the capital Market

The Securities and Exchange Commission says the electronic Dividend platform is a game changer in the market which will ensure that infractions are reduced to the barest minimum.

Director General of SEC, Mounir Gwarzo who stated this at a Town Hall Meeting in Abuja to sensitize the investing public on the e-Dividend registration currently going on all over the country,  expressed satisfaction with the level of success recorded so far with the enlightenment programme.

He urged investors to take advantage of the service and visit their registrars or banks to register, which is free for the first 90 days, while a fee of N100 will be charged thereafter.

Gwarzo also listed the Direct Cash Settlement as a direct benefit to investors from the e-dividend registration as when they register for e-dividend, anytime their shares are sold, they would get the proceeds directly in their bank accounts.

Nigeria stocks near 3-1/2 year low as naira hits 300/US$ on black market

Nigerian stocks fell 3.2 percent to near a three-and-half-year low on Wednesday after the local currency hit a new low of 300 per dollar on the black market amid a central bank rule to curb dollar supply.

The stock index, which has the second-biggest weighting after Kuwait on the MSCI frontier market index, fell to 25,206 points, dropping to levels last reached in September 2012.

The index is down 9.1 percent in its eight days of trading this year, after shedding 17.4 percent last year.

NNPC Vows To Sanction Fuel Marketers Hoarding Products

The Nigerian National Petroleum Corporation (NNPC) has declared that any marketer that fails to comply with the Federal Government new pump price for Premium Motor Spirit (PMS) runs the risk of having its product distributed free of charge to consumers and face a three month ban from operations.

Minister of State for Petroleum Resources Dr. Ibe kachikwu, said in Abuja that the Federal Government had on January 1, 2016 flagged off the enforcement of the new pump price of N86.50 per litre for NNPC Retail stations and N86.50 for independent Marketers across the country.

Addressing a press conference yesterday, the minister said any station that sells above the approved pump price, including NNPC owned Filling stations, will pay for their actions.

According to him, “I will be very shocked if NNPC owned stations are involved in fraudulent activities; but in case they do, I implore Nigerians to make use of their social media platforms to report activities of these stations. When that happens, I will not shut down any NNPC station because I want them to circulate, but I will get the individuals involved fired and the Manager dismissed.”

Similarly lending his voice to the matter, Managing Director, Department of Petroleum Resources, Mordeccai Ladan, said to ensure compliance with government policy, operatives of the DPR will take action from today, noting that the agency had devised electronic measures to ensure that petroleum products are not diverted by criminal elements.

FG To Offer First IPO Of NNPC’s Assets In 2018 – OPEC President

The federal government is planning to hold its first initial public offering (IPO) of assets owned by the Nigerian National Petroleum Corporation (NNPC) in 2018, the Minister of State for Petroleum Resources, Mr. Emmanuel Kachikwu, has said.
“It’s inevitable,” Kachikwu, who also heads the NNPC, said on Tuesday in an interview in Abu Dhabi.
“Part of the cleaning up process that we’re doing is to prepare for that,” Bloomberg quoted him as stating.
The plan is to sell NNPC’s shares in its refining and distribution business and “select” exploration and production assets to the public, he said.

NNPC manages Nigeria’s stakes in joint ventures with international oil companies that pump the country’s crude. It also operates refineries and a distribution network of depots and pipelines across the country of about 180 million people.

Kachikwu also said yesterday that some members of the Organisation of the Petroleum Exporting Countries (OPEC) had requested an emergency meeting, adding that current market conditions support the need to hold such a gathering before the June 2 scheduled meeting of the cartel.

The United Arab Emirates (UAE), however, moved to quash talks of a potential emergency meeting as the country’s Energy Minister Suhail bin Mohammed al-Mazroui said that the current OPEC strategy was working, adding that a period of between one and one-and-a-half years was needed to allow oil prices to rebound.

Reuters quoted Kachikwu as telling reporters at an energy conference in Abu Dhabi that there was a lot of push from various blocs within OPEC for the meeting.
“A couple of countries, I don’t want to mention names,” he said when asked if any had requested holding an emergency meeting.

Naira crashes to 300 against dollar

Monday’s stoppage of foreign exchange sales to Bureau De Change operators by the Central Bank of Nigeria failed to lift the naira on Tuesday as the currency exchanged for 300 against the United States dollar in Kano, 290 in Lagos and 292 in Abuja.

Financial experts said the naira would decline further, while private sector operators described the move as a welcome development.

The ban was announced on Monday, when naira trading at 285 against the dollar at the parallel market from 278 on Friday.

The Acting President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, said the currency traded against the greenback at 300, 290 and 292 in Kano, Lagos and Abuja a day after the CBN announcement.

The Head of Investment Research, Afrinvest West Africa Limited, Mr. Ayodeji Ebo, said the stoppage of forex sale to the BDCs meant that the CBN wanted everybody to apply to the banks for dollars.

He stated, “But we feel the pressure now will move from the BDCs to the parallel market. We will see significant spike in the value of the naira at the parallel market because the little supply to the BDCs have also helped to cushion the demand at the parallel market.