Nigeria’ll still make profits, even if oil drops to $20 per barrel – Kachikwu

The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, says Nigeria is producing a barrel of crude oil at an average of $13 per barrel onshore and will still make profits even if oil drops to $20 dollars.

Kachikwu said the price of crude oil may not improve in the first half of the year, and may need to get worse to get better.

“First half of the year not likely to see much of a difference, but the latter half of the year, I think we are going to see the impact of dwindling production out of Shale,” he told Bloomberg in Davos, Switzerland.

“We would have taken in the Iranian impact. You’re going to see a natural decline of almost a million barrels by virtue of non-investment. I personally don’t think it would get into the $50s in 2016, in 2017 potentially.

“At the end of the day, the excess stock would have to get out. A lot of that excess stock is not necessarily OPEC stock. OPEC has 1.5 million barrels of that but a good 2million barrels of non-OPEC stock is still sitting out there.”

He said OPEC remains relevant, not necessarily as a price fixer, but as the one to drive market trends, “that’s why everyone wants to talk to OPEC”.

He said Nigeria has not “suffered too badly in terms of investments, as most of the projects we have are still on track”.

“The deep off-shore projects, obviously we are putting on hold, given the fact that the returns on those, would not match the prices today.

Naira falls to N297 to the dollar at parallel market

The naira on Friday depreciated by 0.3 per cent at the parallel market barely 24 hours it hedged up against the dollar.

The News Agency of Nigeria (NAN) reports that the naira lost N1 to exchange at N297 to the dollar. It had previously traded for N296 to the dollar on Thursday.

It, however, continued to exchange at N197 to the dollar at the official interbank window.
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Traders at the market said that the scarcity of the dollar was still having its toll at the market, adding that, there were apprehensions that the apex bank might come up with yet another policy next week.

NAN reports that the Monetary Policy Committee Meeting (MPC) of the Central Bank of Nigeria (CBN) will be held on Jan. 25 to Jan. 26.


    
    
    
    

NUPENG to FG: Stop Chevron, Shell move to sack 18,500 workers

 Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, has called on the Federal Government to stop Chevron and Shell Petroleum Development Company, SPDC, from extending the planned sack of 18,500 workers globally to Nigeria.

NUPENG in a statement by its President, Mr. Igwe Achese, insisted that the union was worried and concerned about the purported sack threat of about 18,500 workers, though, globally in Chevron and Shell, describing the planned sack as alarming.

It claimed the planned sack was a sack too many, as oil workers in Chevron Nigeria and Shell would be affected, as the two companies had adduced dwindling oil prices in the international market for the planned sack.

According to the statement: “NUPENG calls on the federal government to halt the threat of loss of jobs in Nigeria by these multinational companies and wonders why Chevron and Shell should engage in the impending sack, when they have fully divested from on – shore oil fields.
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“It will be morally unjustified for Chevron and Shell to retrench oil workers in Nigeria as they are carting away profits made from deep oil shores and joint venture gas projects.

Reuben Abati Mocks FG on N50 Bank Tax

Former Presidential spokesman, Dr. Reuben Abati has taken a few intellectual jabs at the Federal Government over its new policy of charging N50 on specific bank transactions.

In an opinion piece laden with satire, Abati said the Federal Government should just beg for alms. He also suggested calling the banks, post office since they were now collecting stamps.

Here is an excerpt from the article entitled, Inside Dambazau’s Shoes:

“Wahala today. Wahala tomorrow. This Nigeria sef.”

“Yes oh.  They are even saying we will now pay stamp duty on all monies paid into our bank accounts once the amount is over N1, 000.  When you add that to other bank charges, how much is left?”

“My friend, it is just N50.”

“It is not just N50. Why must I dash government money? Is government now begging for alms? Is it that bad? If I want to give anybody alms, it should be my decision.”

“There is a law called Stamp Duties Act. They want to enforce the law.”

“So, a bank is now a branch of the Post Office? If anybody posts money into my account, government will force me to buy stamp? And yet we want a cashless society? Very soon, people will stop doing electronic transfers.”

“Don’t be stingy. Be a good citizen.”

“N50 on every transaction. For people who run active accounts, that could amount to very heavy tax by the end of a month. You know what? I think they should just re-name the banks and call them post offices, since they are now selling stamps.”

“As in?”

“As in Zenith Post Office”

“Diamond Post Office”

“Union Post Office”.

“Na wa oh.”

Read more at http://www.theheraldng.com/n50-bank-tax-reuben-abati-mocks-fg/#pf3cSoOpoRBDE6bh.99
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Nigerian stock market indices up by 0.59 per cent

The market indices of the Nigerian Stock Exchange (NSE) on Friday, appreciated further by 0.59 per cent following price appreciation.

The All-Share Index improved by 139.83 points or 0.59 per cent to close at 23,826.50 against 23,686.67 achieved on Thursday.

Similarly, the market capitalization which opened at N8.146 trillion rose by N48 billion or 0.59 per cent to close at N8.194 trillion.

A breakdown of the activity chart indicated that investors’ exchanged a turnover of 1.01 billion shares valued N1.89 billion traded in 4,229 deals.

NAN reports that this was in contrast with 476.15 million shares worth N3.64 billion transacted in 5,398 deals on Thursday.

Equity Assurance drove the volume of shares traded, accounting for 750.45 million shares worth N375.22 million transacted in 13 deals.

It was followed by FBN Holdings which sold 30.39 million valued N139.77 million exchanged in 443 deals, while UBA accounted for 29.76 million shares worth N89.28 million in 327 deals.

Investors’ bought and sold 28.80 million shares of Zenith Bank valued N329.11 million in 591 deals and FCMB recorded 24.23 million shares worth N24.29 million achieved in 193 deals.

Also, 7UP recorded the highest price gain to lead the gainers’ table, appreciating by N13.71 to close at N186.70 per share.

Seplat grew by N4.97 to close at N156.71, while Guinness garnered N4.85 to close at N101.85 per share.

Nigerian Breweries inched N2.50 to close at N108, while Cadbury improved by N1.29 to close at N13.89 per share.

Conversely, Nestle topped the losers’ chart, dropping by N37 to close at N707.15 per share.

Forte Oil lost N16.50 to close at N313.50, while Northern Nigeria Flour Mill shed 42k to close at N8.13 per share.

International Breweries dropped 40k to close at N15.90 and Caverton dipped 11k to close at N2.24 per share.

Salary Accounts, Self-To-Self Transactions Exempted From N50 Stamp Duty On Transactions

This piece of news will come good to salary earners across the country as payments of salaries and wages as well as payments and deposits for self-to-self transactions whether inter or intra bank are exempted from the N50 stamp duty policy, the Central Bank (CBN) has said.

According to the CBN Director, Corporate Communications, Mallam Ibrahim Mu’azu, who made the clarification on Thursday in Abuja in a statement issued to newsmen, the apex bank introduced the N50 stamp duty policy as part of measures to boost tax revenue for the federal government.

The CBN recently introduced the policy which was contained in the Stamp Duty Act, 2004 and the Federal Government of Nigeria’s Financial Regulation of 2009.

The statement said that charge was on all receipts issued by banks or financial institutions in acknowledgment of services rendered in respect of teller deposits and electronic transfers for a value of N1,000 and above.

“The implementation of the Stamp Duty at this point in time emanated from a Federal High Court order that the CBN should direct deposit money banks under its supervision to commence the collection of the duty on behalf of the federal government.

“Consequently, the money deposit banks have been directed to commence the collection of the duty.

“Banks are to collect the N50 stamp duty and remit same to the Nigerian Postal Services (NIPOST) on behalf of the customer.

“The N50 stamp duty is charged per transaction and NOT per volume. Hence, irrespective of the amount, the sum of N50 is to be charged provided such a transaction is N1,000 and above.

“There are however some exemptions and these include payments of salaries and wages, payments and deposits for self-to-self transactions whether inter or intra bank among others,’’ the statement said.

Nigeria considering tax changes to ease economic crisis -vice president

 

Nigeria's Vice President Yemi Osinbajo says government is considering changes to the tax regime as part of efforts to overcome the crisis in Africa's biggest economy brought on by falling oil prices.

The sharp drop in crude revenues, which provide 95 percent of foreign earnings, has led to the naira hitting record lows on the parallel market as foreign exchange reserves dwindle. Nigeria is Africa's top oil producer.

Crude prices have fallen in the last few days to their lowest levels since 2003, at just over $27 a barrel, although they staged a rebound on Friday. The 2016 budget assumes an oil price of $38 per barrel.

Finance Minister Kemi Adeosun has said Nigeria plans to borrow up to $5 billion from multiple sources, including the Eurobond market, to plug its budget deficit and Osinbajo said changes to taxation were also being considered.

"We are looking at increasing our tax coverage," Osinbajo, who is attending the World Economic Forum in Davos, Switzerland, told CNBC in a television interview.

"VAT, for instance -- we have been doing just about 20 percent coverage. We think that just by increasing coverage we could do much more and so we could earn more in terms of local resources," he said.

Increasing value-added tax from 5 percent, among the world's lowest VAT rates, and broadening the tax base were among suggestions put forward by International Monetary Fund head Christine Lagarde during a visit to Nigeria this month.

FG: Budget deficit increases to N3tr

The 2016 budget deficit will now expand by N800 billion to N3trn, which will be 3 per cent of GDP, the Minister  of Finance, Mrs Kemi Adeosun has said.

In a presentation on the economy released yesterday, the minister said initially, the 2016 budget deficit estimated at 2.2trn or 2.16 per cent of GDP based on an estimated benchmark oil price of $38pb.

CBN to return N35m deposit to Bureau De Change operators

The Central Bank of Nigeria on Friday said it would refund the N35m paid by licensed Bureau De Change operators across the country as mandatory caution deposit.

The move followed last week’s ban of direct sale of foreign exchange to BDCs operators by the CBN.

The apex bank confirmed this refund in a circular signed by the Director, Financial Policy and Regulation Department, Mr Kevin Amugo with reference FPRD/DIR/GEN/CIR/01/004 dated January 22.

It said while the N35m mandatory caution deposit would be refunded, the apex bank would still retain the N1m licensing fee.

The circular reads in part, “Given the recent development in the operations of BDCs in the economy, the CBN has decided as follows.

“The refund of mandatory caution deposit of N35m to all BDC operators and the retention of N1m licensing fee.

“Therefore, all eligible BDCs may wish to apply for refund of their caution deposits attaching evidence of payment and bank transfer details.”

The CBN Governor, Mr Godwin Emefiele had while announcing the ban of forex sale to BDC said that BDCs were free to source for foreign exchange from autonomous sources.

He said any BDC operator that is not satisfied with the apex bank decision should return the operational license to the CBN and ask for the refund of their N35m deposit.

Emefiele had said that Nigeria is the only country in the world where the CBN provides BDC operators with foreign exchange adding that with the continued depletion of the foreign reserves, such funding was no longer sustainable.

For instance, the governor said that between July 2014 and January this year, the country’ reserves had suffered great pressure from speculative attacks, round tripping and front loading activities by actors in the foreign exchange market.

This, he noted, had led to a decline in the reserves from $37.3bn in June 2014 to N28bn currently.

Emefiele lamented that owing to the speculative attack on the nation’s currency, the central bank’s monthly foreign earnings had fallen from as high as $3.2bn to as low as $1bn monthly.

He lamented that while the country’s reserves was declining, the average food import bill was witnessing a steady increase from N148.3bn per monthly in 2005 to an average of N917.6bn within the first nine months of 2015.

He said while the CBN would no longer provide the BDCs with foreign exchange for their operations, the apex bank would deploy more resources to monitoring their sources of foreign exchange  to ensure that no operator is in violation of the bank’s anti-money laundering laws.

Nigerian interbank rate eases after central bank injects liquidity

 

Nigeria's interbank overnight lending rate fell 3.5 percentage points on Friday after the central bank injected naira deposits from commercial lenders into the market.

The overnight rate closed at 1.5 percent on Friday, from 5 percent the previous day after the central bank drained naira liquidity when it sold Treasury bills. The rate had initially spiked to 7 percent, its highest since October.

Nigeria sold 85.83 billion naira in naira-denominated bonds maturing in 2020 and 2026 in Wednesday's auction with payment due on Friday.

The central bank usually asks commercial lenders to pay for their dollar purchases 48 hours in advance, but refunds a portion of the deposit to them after forex intervention.

"We anticipate a further drop in the cost of borrowing in the interbank market to around 1 percent early next week as the liquidity level reflects the refund from the surplus from cash deposited for forex purchases," one dealer said.

Nigeria's interbank rate mirrors the level of naira cash liquidity in the banking system.

$3.9b fine: NCC, MTN begin out-of-court settlement

MTN Nigeria on Friday told the Federal High Court in Lagos that it has started an out-of-court settlement on the $3.9billion sanction imposed on it by the Nigerian Communications Commission (NCC).

MTN’s lawyer, Chief Wole Olanipekun (SAN), said parties were exploring settlement options.

Olanipekun sought 60 days to allow for further discussions between both parties.

Counsel for the Attorney-General of the Federation (AGF), Mr. Oladipo Okpeseyi(SAN), said the telecommunication firm has not been consistent in its move for an amicable resolution.

“This is a matter of national importance. There had been concessions in the past and nothing happened,” he said.

He urged the court to make a consequential order that all the processes filed are deemed as properly filed and served.‎

The judge granted the prayer.

Justice Mohammed Idris held that the preliminary objections and substantive application would be taken together.

NCC had in October last year sanctioned MTN for allegedly failing to disconnect unregistered subscribers.

The initial fine of $5.2billion was reduced by 25 per cent to $3.9billion, with a December 31 payment deadline.

But MTN challenged NCC’s powers to impose the fine. It argued that NCC being a regulator cannot assume all the functions of the state.

MTN said the commission cannot make the regulation, prescribe the penalty and impose the fine payable to it and not to the Federal Government.

The firm also alleged that it was not afforded its constitutional right to fair hearing before a court of competent jurisdiction.

Oil firms capitalizing on inadequate metering to defraud Nigeria — NEITI

The Nigeria Extractive Industries Transparency Initiative, NEITI, says it is intensifying efforts to stop international oil companies from defrauding Nigeria of billions of naira due to inadequate metering facilities at the production and export terminals.

Speaking during a visit of officials of the International Monetary Fund, IMF, to its headquarters, Mr. Ogbonnaya Orji, Acting Executive Secretary of NEITI, lamented that presently royalties are being paid by the international oil companies (IOC) based on computations using lifting volumes instead of production volumes.

Orji stated that several efforts to entrench transparency in the metering process had been met with resistance from the IOCs, hence the decision to collaborate with the Nigerian Academy of Science to fashion out a means to stop the IOCs from shortchanging the country.

He said, “NEITI is working to ensure that the correct estimates of Nigeria’s crude oil lifted is gotten and we will not depend on estimates given by the IOCs.”

He further stated that the funding of the Nigerian National Petroleum Corporation’s, NNPC, Joint Venture (JV) cash call was fraught with a lot of irregularities, adding that due to the delay in the payment, the country is forced to pay higher than usual.

Orji disclosed that NEITI is working with the Nigerian National Petroleum Corporation, NNPC, over the unbundling of the corporation, stating specifically that issues about the unbundling process would be discussed at a meeting between officials of NEITI and the NNPC scheduled for next week.

2016 budget to kick-start Nigeria’s economic recovery – Finance Minister

Nigeria's Finance Minister, Kemi Adeosun, says the full and diligent implementation of the 2016 budget would help the federal government achieve recovery of slowing economic growth, to forestall the remote possibility of recession.

The minister said the focus of the Muhammadu Buhari administration was to stimulate the economy and achieve real gross domestic product, GDP, growth rate of 4.2 per cent through the 2016 budget.

Mrs. Adeosun said the present administration was equally determined to reduce the cost of governance, extract efficiencies in public service and enhance revenue collections.

With budget deficit at N2.2 trillion, or 2.16 per cent of GDP based on an estimated benchmark crude oil price of $38 per barrel, the minister said present realities and dynamics in the global oil markets, calls for preparation for further decline in oil prices.

She said the government has developed a “shadow budgeting process with tactical responses to build in the flexibility in the country’s borrowing needs”.

Mrs. Adeosun said the present administration would go ahead with its robust commitments on infrastructure development in spite of dwindling crude oil price.

She said as long as oil was available and the dollars flowed, the country kept spending, pointing out that even when prices fell, as in 2008 during the global slowdown, the spending continued, through the cash reserves in the hope of a future oil price recovery.

Now crude oil prices have crashed, and the outlook showed that prices would be “lower for longer”, she said Nigerians have been compelled to critically evaluate their expenditure on oil proceeds.

   

Nigeria plans up to $5 bln borrowing from sources including Eurobonds: finance minister

Nigeria's Finance Minister says the country plans to borrow up to $5 billion from multiple sources, including the Eurobond market, to plug its deficit as it tries overcome its worst economic crisis in years through a record budget.

Africa's biggest economy and top oil producer is reeling from the fall in crude revenues, the source of 95 percent of foreign earnings, which has led to the naira hitting record lows on the parallel market amid dwindling foreign exchange reserves.

She said the government was "optimistic" that it would "receive the desired support" after cutting government costs and improving revenue collection.

Last month President Muhammadu Buhari presented a 2016 budget which states that total spending will be 6.08 trillion naira ($30.6 billion) and includes a tripling of capital expenditure to improve rail, road and power networks.

An amended version of the budget has since been submitted, although none of the estimates have changed.

Adeosun said the government was committed to its plans and would not reduce its infrastructure investments, adding that although the budget was based on an oil price of $38 per barrel there was enough flexibility for prices to be lower.

29 Ships laden with petroleum products, foods expected in Lagos

Twenty-nine ships laden with petroleum products, food items and other goods are expected to arrive Apapa and Tin-Can Island Ports in Lagos from Jan. 21 to Feb. 5.

The Nigerian Ports Authority (NPA) stated this in its publication – `Shipping Position’ – a copy of which was made available to the News Agency of Nigeria (NAN) on Thursday in Lagos.

NPA stated that the expected ships contained general cargoes, buck wheat, containers, bulk sugar, steel products, bulk charcoal, bulk gas, diesel, petrol and base oil.

The document noted that nine ships had arrived the ports, waiting to berth with petroleum products and frozen fish.

16 other ships are at the ports discharging buck wheat, general cargoes, bulk charcoal, bulk rice and petrol.

Nigeria must devalue Naira to N265 to the dollar – S&P

Ratings agency Standard & Poor’s reiterated on Thursday that Nigeria will have to devalue its currency, saying it expected this to happen at some stage in 2016 and in gradual adjustments, a suggestion President Muhammadu Buhari said gives Nigeria, a zero benefit.

Investors have seen a devaluation of the naira as long overdue for Africa’s largest economy and biggest oil exporter, which has been battered by the tumble in crude prices.

Despite growing pressure, Nigeria’s government has kept the naira pegged at around 198 to the dollar on the official interbank market, while restricting access to dollars.

“Their line has been to try to hold it as much as possible, and they are trying to continue that policy…alongside the restrictions on imports as well,” said Ravi Bhatia, Director of Sovereign and International Public Finance at Standard & Poor’s.

“But at some point they are going to have to move, but I think they are going to try and do it incrementally and not (in) big jumps,” Bhatia told reporters in a briefing, adding he expected this to happen in one or two increments.

Nigerian non-deliverable currency forwards, a derivative product used to hedge against future exchange rate moves, indicated markets expected the naira exchange rate at 265.00 to the dollar in six months time, and at 284.00 to the dollar in 12 months’ time.

Brent crude accounts for about 95 percent of foreign earnings. A devaluation would only go some way to improve Nigeria’s situation, said Bhatia.

UN Chief names ‘eminent advocates’ to propel achievement of new Sustainable Development Goals

 A queen, a crown princess, a president, a prime minister, a Chinese e-commerce pioneer, and a player often ranked as the world’s best footballer are among eminent Advocates appointed by Secretary-General Ban Ki-moon today to help achieve the United Nations 2030 Agenda for Sustainable Development, which seeks to eliminate poverty, hunger and a raft of social ills, all within 15 years.

The eminent Sustainable Development Goals (SDGs) Advocates “will build on their unique standing and leadership to promote the SDGs as part of an ambitious and transformative global development agenda,” a UN spokesperson said.

“They are to support the Secretary-General in his efforts to generate momentum and commitment to achieve the SDGs by 2030,” the spokesperson added in a note to correspondents, which also listed the panellists.

The co-chairs are Ghanaian President John Dramani Mahama and Norwegian Prime Minister Erna Solberg. Members include Queen Mathilde of Belgium; Crown Princess Victoria of Sweden; Jack Ma, Founder and Executive Chairman of the Chinese Alibaba Group of Internet-based businesses; and Leo Messi, the world renowned Argentine-born footballer, who is already a UN Children’s Fund Goodwill Ambassador.

The 2030 Agenda, adopted unanimously by 193 Heads of State and other top leaders at a summit at UN Headquarters in New York in September, calls on all countries to achieve 17 SDGs, addressing the needs of people in both developed and developing countries.

They build on the earlier eight Millennium Development Goals (MDGs), which specifically sought by 2015: to eradicate extreme poverty and hunger; achieve universal primary education; promote gender equality and empower women; reduce child mortality; improve maternal health; combat HIV/AIDS, malaria and other diseases; ensure environmental sustainability; and develop a global partnership for development.

But progress on these was uneven across regions and countries, leaving millions of people behind, especially the poorest and those disadvantaged due to sex, age, disability, ethnicity or geographic location. This is where the SDGs come in.

They stress everything from zero poverty, zero hunger, good health, quality education, gender equality, clean water and sanitation, and affordable clean energy, to decent work and economic growth, innovation, reduced inequalities, sustainable cities, responsible consumption, climate action, unpolluted oceans and land, and partnerships to achieve the goals.

“The SDG Advocates will promote the universal character of the SDGs, including their commitment to leave no one behind; to promote the engagement of new stakeholders in the implementation and financing of the SDGs; to encourage partnerships with governments, civil society and the private sector to share knowledge and resources; and to raise awareness for the integrated nature of the SDGs,” the spokesperson said.

The other Advocates are: Sheikha Moza bint Nasser, Co-Founder of the Qatar Foundation; screenwriter, producer and film director Richard Curtis; Dho Young-Shim, Chairperson of the UN World Tourism Organization’s Sustainable Tourism Foundation; Leymah Gbowee, Director of the Gbowee Peace; Graça Machel, President of the Foundation for Community Development; Alaa Murabit; Founder of The Voice of Libyan Women; Paul Polman, Chief Executive Officer of Unilever; Jeffrey Sachs, Director of the Earth Institute at Colombia University; Shakira Mebarak, Founder of the Pies Descalzos Foundation; actor Forest Whitaker, Founder of the Whitaker Peace & Development Initiative; and Noble Peace Prize laureate Muhammad Yunus, Founder of the Grameen Bank.

Nigeria pipeline attacks cause $2.4 mln gas, power loss each day: govt

The Federal government said on Thursday that the attacks on pipelines over the weekend have cost the country around 470 million naira ($2.4 million) each day in lost gas and electricity.

The attacks in the southern oil-producing Niger Delta region followed years of relative calm in that part of Africa's biggest crude producer after a 2009 amnesty halted a spate of attacks on oil installations and kidnappings of expatriate workers.

On Wednesday, the state oil company said it had closed two of its four refineries due to crude supply problems following the attacks.

The Ministry of Power, Works and Housing issued a statement saying the pipeline vandals caused losses in gas sales and, as a result of the impact on gas-fired power stations, electricity shortages.

The sabotaged pipeline, which contributes to the Escravos Lagos Pipeline System, has led to a loss of 160 million standard cubic feet per day (mmscfd) of gas, which ministry spokesman Hakeem Bello said equated to a daily cost of about $400,000.

"This is in addition to losses to be incurred daily from affected power generation (392 million naira; $2 million). The total daily loss to the country is therefore estimated at 470,479,931 naira," Bello said in the statement.

Nigeria's Azura says raises $876 mln for 450MW Azura-Edo power plant

 

 Nigeria's Azura Power Holdings Ltd said on Thursday it had raised $876 million for its power plant in the southwest of Africa's most populous nation and that construction was set to commence.

Azura, along with its founder and majority shareholder Amaya Capital, said lenders for the independent power plant (IPP) in Edo state included Siemens Bank, Standard Bank, CDC and the International Finance Corporation, an arm of the World Bank.

"The $876 million transaction is the first of a new wave of project-financed greenfield IPPs currently being developed in Nigeria," said Azura in a statement.

"The financing of the Azura-Edo IPP involves US$190 million of equity and US$686 million of debt from a consortium of local and international financiers," it added.

The Azura-Edo IPP consists of a 450MW open cycle gas turbine power station and a transmission line connecting the power plant to a local substation and an underground gas pipeline connecting the power plant to Nigeria's main gas supply.

The company said the project represents the first phase of a 1,500MW power plant facility which is targeted to come on stream in 2017 and supply more than 12 million people in Nigeria.

Skye Bank to raise new capital in first quarter 2016

Skye Bank Plc has started arrangements to raise additional equity funds within the next two and half months as the commercial bank seeks to beef up its capital base and improve its working capital.

Group managing director, Skye Bank, Mr. Timothy Oguntayo, who disclosed this yesterday at an interactive session with top stockbrokers in Lagos, said the bank had entered into discussions with some of its key shareholders and strategic potential investors for fresh capital injection.

He expressed optimism that the new capital raising exercise could be completed during the first quarter.

He however noted that the bank’s capital adequacy ratio of 15.87 per cent, out of which 12.4 per cent is covered by common equity, was already in compliance with Basel 11 provisions.

He said the bank is shifting its business focus to retail and commercial banking as it enters a new growth phase after the acquisition and integration of erstwhile Mainstreet Bank Limited.

Oguntayo said retail banking as the bank’s new business focus would be pursued in 2016 for more traction adding that the small and medium enterprises (SMEs), small businesses and priority banking would be strengthened.

He said the bank has set for itself in the medium to long term, strategies to achieve growth for the good of shareholders and other stakeholder.

He recalled that in 2015 the board of the bank had appointed four new executive directors to the board; concluded the design of a three-year strategic plan from 2016-2018; achieved certification by the British Standard Institution on IT Service management, business continuity and IT management for the integrity of its operations as part of efforts to strengthen its operations.

He said the bank had commenced structured capacity building programmes for the SME segment, working with the International Finance Corporation (IFC) on the business model and risk management framework and product innovation for its retail business.

Northern States Sign Agreement With Bill Gates, Dangote On Immunisation

Some northern state governments in Nigeria have signed a Memorandum of understanding (MoU) with the Bill Gates and Dangote Foundations, to strengthen routine immunisation in the region.

The partnership is aimed at eradicating polio cases and other child killer diseases in Northern Nigeria and other States.

Speaking during the signing of the agreement in Kaduna on Wednesday, Mr Bill Gates said his foundation was determined to eradicate polio and other related diseases in Nigeria, Africa and globally through partnership with various states and countries.

He commended the various state governments for allocating a substantial sum of their annual budget to the health sector.

On his part, President of Dangote Foundation, Mr Aliko Dangote, commended the state governments for their efforts in routine immunisation coverage and assured them of his foundation’s continuous support to the various state governments in Nigeria in the fight against child killer diseases as well as boosting the health sector.

He also announced the extension of additional one year partnership on routine immunisation with Kano State.

The agreement was signed with the governments of Kaduna, Borno, Sokoto and Bauchi States.

Technical And Financial Assistance

State governors, the Minister of Health, traditional rulers, diplomats, representatives of development partners and other relevant stakeholders in the health sector witnessed the signing of the agreement.

Under the agreement, the two foundations will offer both technical and financial assistance in support of the exercise in the respective states.

In his presentation, the Secretary of National Primary Health Care Development Agency, Dr Ado Mohammed, explained to the gathering what the Federal Government was doing to sustain routine immunisation.

He said Nigeria had successfully reduced childhood mortality, as at 2015, a feat he attributed to the use of vaccines.

Some development partners at the ceremony also lauded the agreement.

UNICEF Country Representative, Jean Gough, said the MoU would offer the model platform to capitalise on the prospects of evidence-based approaches towards sustainable routine immunisation.

The Governor of Kano State, Abdullahi Ganduje, Governor of Borno State, Kashim Shettima and the Deputy Governor of Kaduna State, Bala Bantex, unanimously agreed that the routine immunisation in their respective states had started yielding results, as the region in the past 13 months recorded no case of polio.

The public/private partnership, also seeks to improve routine immunisation and primary health care in the north with a goal of reaching 80 per cent coverage with basic vaccines by 2020.

For proper sustenance of the MoU, stakeholders expect that the state governments involved in the partnership will meet up with their own responsibilities and ensure transparent implementation of the programme.

Over two million deaths are delayed through immunisation each year globally.

Despite this fact, vaccine-preventable diseases remain the most common cause of child mortality in Nigeria, with an estimated three million deaths each year.

In Nigeria, immunisation against childhood diseases such as diphtheria, pertussis, tetanus, polio and measles remains a difficult task in the health sector.

In spite of the challenges, the World Health Organization (WHO), in September last 2015, removed Nigeria from the list of polio endemic nations in the world.

This is the first time that Nigeria has interrupted transmission of wild poliovirus, bringing the country and the African region closer than ever to being certified polio-free.

Nigerian Stocks to Lead 2016’s List of Bearish Market Losers

Nigerian equities dropped the most in more than a year to enter a bear market as Brent crude prices plunged, weighing on Africa’s biggest economy and oil producer.

The Nigerian Stock Exchange All Share Index fell 4.1 percent to 22,550.83 by the close in in Lagos, the lowest level since July 2012. The measure is down more than 21 percent since the previous peak on Dec. 31, the worst performer among 93 global indexes tracked by Bloomberg this year.

Nigeria is struggling to cope with crude prices that have fallen to below $30 a barrel, while investors are holding off from pouring money back into the country until there is clarity over whether the currency will be devalued to compensate for the drop in oil revenue. With the backing of President Muhammadu Buhari, the central bank has restricted supplies of foreign currency, curbing growth and all but pegging the naira at 197-199 per dollar since March last year.

“The oil price is scaring’’ investors away, Lanre Buluro, head of research at Primera Africa Securities Ltd., said by phone from Lagos.  There is also “no clarity on the exchange rate,’’ he said.

The slide in stocks comes only one trading day after the bourse introduced a circuit breaker on Jan. 15 to limit price swings. Trading on the Nigerian Stock Exchange will be stopped for 30 minutes if the All Share Index moves more than 5 percent from the previous day’s close between 10:15 a.m. and 1:45 p.m., the bourse said. The market will close for the day if the circuit breaker is triggered for a second time.

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Shell sees 40 pct slide in fourth-quarter profits

Royal Dutch Shell has said it expects fourth-quarter profits to slide at least 40 per cent from a year ago following a collapse in crude prices that has hit industry revenues, leading to job losses and billions of dollars in spending cuts.

The Anglo-Dutch oil major, in a trading update ahead of a shareholder vote this month on its £36bn planned takeover of rival BG Group, forecast that earnings, on a current cost of supplies basis excluding exceptionals, would fall to between $1.6bn and $1.9bn, below the consensus view of analysts.

However, Ben van Beurden, chief executive, said he was “pleased with Shell’s operating performance in 2015, and the momentum in the company to reduce costs and to improve competitiveness”.

“Bold, strategic moves shape our industry. The completion of the BG transaction, which we are expecting in a matter of weeks, will mark the start of a new chapter in Shell, to rejuvenate the company and improve shareholder returns,” he said.

He reiterated Shell’s plans to reduce capital spending by 20 per cent to $29bn for last year from 2014 levels, and indicated that spending for the enlarged company would be $33bn in 2016, a reduction of about 45 per cent in combined spending, which peaked in 2013.


Brent crude has tumbled more than 70 per cent from its summer 2014 peak of more than $115 a barrel to just $30, amid a US supply glut, weaker Chinese demand and Opec’s decision not to cut output.

Oil and gas groups have responded by slashing capital expenditure in an effort to shore up cash flow and preserve dividend payouts to investors. Wood Mackenzie, the consultancy, calculates that nearly $400bn of spending on big, new projects has been put on hold.

Bureaux de Change owners fighting Naira

Central Bank of Nigeria Governor, Mr. Godwin Emefiele, says it will not go back on restrictions placed on Bureaux de Change (BDCs), describing them as waging a relentless war on the Naira.

He stated thid when he briefed lawmakers yesterday at the national assembly in Abuja. He said that the activities of operators of BDCs were mainly responsible for the dwindling value of the Naira as they embark on rent seeking speculation of the local currency.

He also told the senators that some 2,837 BDC operators were leading the speculations against the Naira in the parallel market, adding that since stoppage of allocations to BDCs, they have been sourcing their dollars from oil companies and other foreign exchange earners.

DMO, SEC aim for debut sovereign sukuk in 2016

The Debt Management Office (DMO) and capital market regulator  Securities and Exchange Commission, SEC, have agreed to collaborate on a debut issuance of sovereign Islamic bonds (sukuk) before the end of the year, the two bodies said.

The move could spur wider issuance of sukuk in one of Africa's most liquid debt markets, following similar sovereign deals from Senegal and Ivory Coast.

The DMO in a statement said the issuance of a sovereign sukuk was part of a strategic plan developed by the agency three years ago and it will now seek help from Nigeria's Securities and Exchange Commission in areas such as capacity building.

The statement further stated that issuing a sovereign sukuk will attract significant amounts of affordable capital from the Gulf countries and other established Islamic markets around the world into Nigeria.

The statement did not give a potential size for a maiden sukuk deal, although the DMO is a regular issuer of five- and ten-year local-currency bonds.

In 2013, Nigeria's Osun State issued 10 billion naira ($62 million) of sukuk, but no other sukuk transactions have followed.

Nigeria is home to the largest Muslim population in sub-Saharan Africa, with about half of its 160 million people members of the Islamic faith. It is also home to one of Africa's fastest growing consumer and corporate banking sectors.

Government to sanction errant international airlines

The Federal Government has threatened punitive action against international airline operators that flout local immigration regulations.

Minister of State for Aviation, Hadi Sirika, warned such companies of "dire consequences."

"Government cannot continue to condone the practice of subjecting Nigerians to all forms of suffering," the minister said.

"...either by making them walk long distances before boarding or using small aircrafts that would not carry them along with their luggage to their destinations."

Sirika said the Nigerian Civil Aviation Authority (NCAA) had been directed to invoke all relevant laws to protect the interest and rights of Nigerians and others from being flagrantly abused the airlines.

The minister spoke in Abuja where he met a delegation from the Emirates Group.

He meanwhile assured that the on-going construction of the second terminal at the Nnamdi Azikiwe International Airport in Abuja would be  ready before the end of the year.

He stated that its completion would improve the comfort and convenience of both airline operators and the flying public.

Bill Gates in Kaduna to sign MOU with Dangote

World's richest man, Bill Gates is in Kaduna State to sign an MOU with Dangote foundation on Routine Immunization, Nigeria Bulletin reports.

Gates was received by Kaduna state governor, Nasir El Rufai and Sokoto state governor, Aminu Tambuwal.

Pipeline vandalism: NNPC shuts down two refineries

Two refineries were shut down by the Nigerian National Petroleum Corporation (NNPC) due to pipeline vandalism by the Niger Delta militants last week. The refineries, with a combined capacity of 235,000 barrels per day, resumed production in December and January respectively after long maintenance work.

However, work stopped at the refineries on Sunday following the action of NNPC. Spokesperson of NNPC, Mr Ohi Alegbe, confirmed the shutdown of the refineries which he said was to avoid any fire incident along the pipelines. He said the corporation shut-in the pipelines both for gas and crude oil along the affected areas to avoid further damage to the two refineries.

He said the NNPC will continue to monitor the progress of the refineries and the Nigeria Gas Company and update the public at the appropriate time.

Some militant groups weekend attacked pipelines in the Niger Delta region following the arrest warrant for former militant leader Government Ekpemupolo, known as Tompolo, as part of a crackdown on corruption by the President Buhari administration.

Before the incident, the two refineries were refining about 4 million litres of products which include Dual Purpose Kerosene and Premium Motor Sprit (PMS).

CBN directs banks to enforce N50 stamp duties on transactions

The Central Bank has told commercial banks to start enforcing the country’s stamp duties law on financial transactions with “immediate effect”.

In a circular to the banks, the CBN asked the banks to charge N50 on every N1 000 deposit or electronic transfer made by customers.

Read circular here: http://www.cbn.gov.ng/Out/2016/CCD/SCAN0001.pdf

Deposits or transfers made by a person to his own account, inter bank or intra-bank are exempted. Also exempted are withdrawals from savings accounts.

The CBN said the charges are only payable by receiving accounts and urged banks and financial institutions to support government drive to boost revenue base, in view of the gross fall in oil income.

Nigeria relies heavily on revenue from crude sales but the falling oil price means it will have to look elsewhere to fund its budget.

The Federal Government plans to spend about 6 trillion naira in 2016 with expected revenue of around 3.9 trillion naira, of which only 820 billion would come from oil.