POLICY AND REFORMS: Getting down to brass tacks

POLICY AND REFORMS: Getting down to brass tacks

Power Sector: On Pins and Needles

In H1 2017, though power generation improved from end of December by 20% to 4150MW, reflecting increase in gas supply to gas-fired power plants (+39% to 547mmscf/d), the sector continues to grapple with myriad of challenges that has resulted in financial distress for sector players.

Infrastructure challenges stemming from gas supply constraints as well as inadequate electricity transmission and distributions mechanism has hampered loss reduction by Discos, and inherent cash shortfall and deficit that has bewildered the sector. Pertinently, out of circa 14,000MW installed generation capacity, just about 31% has been dispatched on average in the last two years.

To start with, the Multi-Year Tariff Order (MYTO), a tariff model to set cost-reflective tariffs has failed to keep to its path. Basically, the MYTO provides a 15-year tariff path with limited reviews each year in the light of changes in certain parameters (inflation, interest rates, exchange rates and generation capacity) and major review every 5 years. However, despite significant spikes in key parameters, inflation and exchange rate, tariff has remained sticky and has thus driven significant accumulation of cash deficit across the value chain. To emphasize the magnitude of the deficit, our analysis indicates current tariff of N28.8/kWh is about 43% discount to our estimated current cost reflective tariff of N50.5/kWh.

According to NERC, between the period of February 2015 and December 2015, the tariff shortfall1 and market shortfall are estimated at N460billion ($1.4billion) and N470billion ($1.5billion) respectively. The foregoing has led to under-performance by the DisCos and the rest of the sector. Aggregate Technical and Commercial Collection Losses (ATC&C) as reported by the DisCos have increased to 54% in 2016 (2015: 52%), a 22pps variance from the 32% in the MYTO estimates.

Consequently, DisCos collection rate and DisCos settlement to NBET declined 4pps and 24pps to 57% (2015: 61%) and 29% (2015: 53%) respectively in 2016. Furthermore, the sector has had to grapple with the debt profile of Ministries, Department, and Agencies (MDAs) in aggregate. NERC estimates aggregate debt owed to the electricity industry by the MDAs at N65billion ($206million) as at end of 2016 which contributes about 7% of the accumulated cash deficit.

More so, currency concerns relating to debt repayment and expansion in debt have stifled profitability of power firms—largely due to currency mismatch and associated risks—from NGN denominated revenues to service a dollar-denominated loan facility. Total power sector loans following the sale of assets in 2013 stood at N219.7 billon (DisCos) and N287 billion (GenCos). However, the ~ 80% devaluation of the NGN from 2013 till date majorly expanded the debt profile by about one-fold—implying significant FX losses on financials.

Given the Economic and Recovery Growth Plan (ERGP), which recognizes the role of power to the development of all sectors of the economy, the FG sees power as one of its top priorities and aims to expand power sector infrastructure, increase power generation, address gas supply issues, optimize the existing installed capacity available for generation, and improve the commercial viability of the GenCos and DisCos.

On this basis, the FG just recently designed a recovery program for the power sector, which in our view, cause for some optimism given a better understanding of the challenges, in contrast to prior plans, as well as a greater political will to save the sector.

 

View full Nigeria Strategy Report here

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In the news: Oil price rises to $57 per barrel

In the news: Oil price rises to per barrel

Punch

Four banks trading below minimum liquidity ratio – MPC members

Four commercial banks in the country are operating with too many non-performing loans on their books and with liquidity ratios below the minimum requirement.

Petrol price fail to crash despite Kachikwu’s assurances

Fifteen months after the price of Premium Motor Spirit, otherwise known as petrol, was increased by 68 per cent, consumers have yet to see any significant decrease in the price, contrary to the promise by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu.

CBN funding of FG excessive, says Salami

The Central Bank of Nigeria is acting like a “piggy bank” with its funding of the government, a member of the Monetary Policy Committee, Dr. Doyin Salami, has said.

Oil price rises to $57 per barrel

Oil prices rose on Wednesday in spite of a rise in US crude inventories with the market heading for its largest 3rd quarter gain in 13 years after the Iraqi oil minister said OPEC and its partners were considering extending or deepening output cuts.

This Day

Emefiele Identifies Bottlenecks to Mortgage Financing

The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele has identified various bottlenecks hindering genuine investors and by extension free flow of funds into the mortgage sector.

NNPC Begins Prospecting for Hydrocarbon in Sokoto Basin

The Nigeria National Petroleum Cooperation (NNPC) has said it has started the process that will lead to the exploration of oil and gas in the Sokoto Basin.

Vanguard

Union Bank’s N50bn Rights Issue opens for subscription

Union Bank Nigeria Plc’s N50 billion Rights Issue opened for subscription, yesterday, just as Forte Oil Plc has put on hold its proposed N20 billion capital raising after receiving the approval of Securities and Exchange Commission, SEC.

BoI’s loan to Kaduna MSMEs hits N47bn

The Bank of Industry (BoI) has disbursed loan in excess of N47billion to support entrepreneurs in Kaduna State in the micro, small and medium enterprises, MSMEs, category,  Managing  Director of the bank, Mr. Olukayode Pitan, has said.

Why we don’t manufacture cube sugar — Dangote

Dangote Sugar Refinery Plc has given insights into why the company is not manufacturing cube sugar despite having invested over N400 billion in backward integration projects in the sugar sector.

The Nation

Forte Oil suspends N20b offer

The board of directors of Forte Oil Plc has decided to suspend the energy group’s bid to raise new equity funds. Forte Oil had earlier secured regulatory approval to float a supplementary capital raising through a book building.

Power generation rises to 6619mw

The Minister of  Power, Works and Housing, Babatunde Fashola, has presented the Federal Government’s scorecard on the power sector for the past two years.

Experts seek more local content participation

Experts have called on indigeneous companies and industrialists to embrace local content participation as a means of developing the economy.

Guardian

Equities rebound, indices up by N124 billion

Equity transactions rebounded after a two-day losing streak yesterday, following heavy price gains recorded by major highly capitalised stocks especially Total and Dangote Cement, as indices soared by N124billion.

PENGASSAN tasks government on payment of N720 billion debt to oil marketers: The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has appealed to the Federal Government to settle all outstanding debts to oil marketers.

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In the news: Nigeria’s foreign debts hit $15.05bn

In the news: Nigeria’s foreign debts hit .05bn

Punch

FIRS generates N2.5tn from taxes in eight months

The Federal Inland Revenue Service on Tuesday said it generated a total of N2.51tn from taxes for the federation between January and August this year.

Egina project’ll boost oil production by 200,000bpd

The nation’s oil production will be boosted by 200,000 barrels per day by the fourth quarter of 2018, the Deputy Managing Director of Total, a principal partner of the Egina Project, Mr. Ahmadu Musa-Kida, has said.

Oando shareholders protest, call for Tinubu’s resignation

Shareholders of Oando Plc from across the South-West states on Tuesday staged a protest in Ibadan, the Oyo State capital, and demanded that the company’s Managing Director, Wale Tinubu, should step down because of the firm’s poor financial position.

FG considers tax reliefs to fund road construction

The Federal Government said it might resort to a tax recovery funding arrangement for the execution of some major road projects in the country.

This Day

N100bn Debut Sukuk Offer Closes Wednesday

The Debt Management Office’s (DMO) inaugural N100 billion Sukuk offer will close wednesday.

Kaduna Disco Generates N1.7bn in Sokoto in Eight Months

The Kaduna Electricity Distribution Company (KAEDCO), Tuesday said it generated about N1.7 billion in Sokoto state from January 2017 till date.

Vanguard

Nigeria’s foreign debts hit $15.05bn in June – NBS

The National Bureau of Statistics, NBS, yesterday, said Nigeria’s foreign debt stood at $15.05 billion, while the domestic debt portfolio was put at N14.06 trillion in June this year.

NSE market indicators dip further by 0.08%

A total of 174.65 million shares valued at N2.83 billion were traded in 3,783 deals on the Nigerian Stock Exchange (NSE) on Tuesday.

FG set to implement ERGP, as NESG rolls out programe

The Minister of Budget and National Planning, Senator Udoma Udo Udoma, yesterday, disclosed plans by the Federal Government to implement measures toward realising a growth target of 7 per cent by 2020.

The Nation

Flour Mills to raise N40b equity funds in three years

Flour Mills of Nigeria (FMN) Plc has registered a shelf fund raising programme with the Securities and Exchange Commission (SEC). It will allow the leading flour-milling company to raise up to N40 billion in equity funds over the next three years.

Currency speculators forced out of forex market

After recording huge losses in naira and foreign currencies, currency speculators seem to have been chased out of the country’s foreign exchange (forex) market.

Reuters

Nigeria, Libya likely to attend OPEC-led panel; Saudi may not: sources

Nigeria’s oil minister and the head of Libya’s state oil company are likely to attend a joint meeting between OPEC and non-OPEC nations on Friday, two OPEC sources said, to discuss the progress of their deal to limit output.

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In the news: Bond Prices Rise on Liquidity Boost

In the news: Bond Prices Rise on Liquidity Boost

This Day

Equities Market   Sheds N326bn on Weak investor Sentiments

Contrary to expectations that the gains recovery witnessed in the market the previous week would be sustained last week, the equities slipped back into the bears’ territory on weak investor sentiments.

Bond Prices Rise on Liquidity Boost

The over-the-counter (OTC) bond prices climbed last week amid boost in liquidity. Specifically, the 20-year, 10% FGN JUL 2030 paper, the 10year, 16.39% FGN JAN 2022 debt, the 7-year, 16.00% FGN JUN 2019 and the 5-year, 14.50% FGN JUL 2021 debt appreciated by N0.66, N0.63, N0.70 and N0.67 respectively.

Union Bank’s N50bn Rights Issue to Open for Subscription Wednesday

Union Bank has announced that the subscription for its N50 billion Rights Issue will commence on Wednesday, September 20 and close on Monday, October 30, 2017.

FG Sets Bid Round Guidelines for Award of 46 Marginal Oil Fields

The federal government through the Department of Petroleum Resources (DPR) has set the guidelines for the marginal oil field bid round scheduled to take place later this year or early 2018 and could potentially see scores of investors jostling to acquire 46 oil acreages during the exercise.

Punch

N’Assembly will get 2018 budget next month – Enang

The 2018 Appropriation Bill will be submitted to the National Assembly in October, the Special Adviser to President Muhammadu Buhari on National Assembly Matters (Senate), Ita Enang, has said.

FG’s N720bn debt threatens oil workers’ jobs

The Petroleum and Natural Gas Senior Staff Association of Nigeria has alleged that oil marketers may have concluded plans to sack their workers if the Federal Government fails to settle the N720bn debt owed the marketers.

Invest in FG’s N100bn sukuk, CBN urges Nigerians

The Central Bank of Nigeria has urged Nigerians to take advantage of the sovereign sukuk being offered by the Federal Government in order to support the country’s infrastructural development while making money.

The Nation

Liquidity squeeze threatens settlement at equities market

The inability of investment firms and stockbrokers to access amenable funds is threatening efficient settlement at the Nigerian equities market.

AFC: Nigeria needs $3tr to fix infrastructure

The Africa Finance Corporation (AFC) has said Nigeria needs $3 trillion to fix huge infrastructure deficit in the country over the next three decades.

Vanguard

Uncertainty as N241bn outflow via Sukuk Bond, TB auctions hit interbank market

The interbank money market will  this week experience outflow of N241 billion through treasury bills (TBs) and FGN Sukuk Bond auctions, prompting uncertainty over the direction of movement in cost of funds.

11 Insurance firms pressured by N40bn rising claims

With the recent flooding in some parts of the country, coupled with increased awareness by insurance consumers in Nigeria, insurance claims have grown by over N5.9 billion in the first half of 2017, H1’17.

FMDQ approves registration of Wema Bank’s N50bn CP

The FMDQ OTC   Securities Exchange has approved the registration and listing of Wema Bank’s N50 billion Commercial Paper (CP) programme on its platform.

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In the news: CBN sees further growth in economy

In the news: CBN sees further growth in economy

Punch

NNPC to shut refineries for maintenance

The Nigerian National Petroleum Corporation will soon shut down three of its four refineries, according to the Group Managing Director, Dr. Maikanti Baru, has said.

BEDC, others sign MoU on 20MW power plant

The Benin Electricity Distribution Plc has announced the signing of a Memorandum of Understanding with Thames Energy Limited and the Delta State Government on the construction of a 20 megawatts power plant in the area.

Food/beverage stocks appreciate by 1.14%, market gains N23bn

Food/beverage stocks soared by 1.14 per cent on Wednesday, thus emerged the top-performing stocks as the Nigerian Stock Exchange capitalization appreciated by N23bn.

Naira weakens to 367/dollar

The naira weakened to 367 per United States dollar at the parallel market on Wednesday, after closing flat at 365/dollar in the past one week.

No lifting from Lagos oil field in Q2 – Report

One of the joint venture partners in Aje field, offshore Lagos, said there was no oil lifting from the field in the second quarter of this year.

The Nation

CBN sees further growth in economy

As the country exits recession, the Central Bank of Nigeria (CBN), said the economy will continue to improve in the days and years ahead.

NBS: Nigeria’s Q2 merchandise exports hit N3b

The National Bureau of Statistics (NBS) said  Nigeria’s total export value stood at N3,102 billion in the second quarter, representing a marginal increase over the first quarter.

Nigeria to undertake over 50% fabrication, integration in IOCs’ projects

About 50 per cent of the fabrication and integration of topsides of the floating, production, storage and offloading (FPSO) vessels of Nigerian Agip Exploration Limited (NAE)’s and Shell Nigeria Exploration and Production Company (SNEPCO)’s Zabazaba deepwater project and the Bonga South West Aparo (BSWA) deepwater project will be done by Nigerians.

This Day

Dangote Cement Confirms Bid for PPC of South Africa

Dangote Cement Plc, which is the most capitalised company listed on the Nigerian Stock Exchange (NSE), confirmed that it plans to acquire the entire share capital of PPC Limited-South Africa’s leading cement firm.

Nigeria to Ban Importation of Dirty Petrol, Diesel December 1

Nigeria, Togo, Ivory Coast and Benin Republic are expected to implement rules banning imports of petrol and other products with high sulphur content from December 1, 2017, after missing earlier deadlines.

Guardian

Oil production dips to 1.3mbd over vandalism, says NNPC

An average of 700,000bpd of crude oil was deferred in 2016 due to pipeline sabotage, this brought Nigeria’s production down to as low as 1.3 million barrels per day from 2.2 million barrels targeted for the period.

Quality credit data management needed to tackle over N2tr NPLs

With over N2trillion of non-performing loans (NPLs) in the nation’s financial services sector, stakeholders have advocated the promotion of effective credit risk operations through the deployment of quality and robust credit data management.

Reuters

Nigeria unlikely to join OPEC cuts before March -oil minister

Nigeria is very unlikely to join OPEC’s cuts in oil production before March, its oil minister said on Wednesday.

Nigeria’s oil production at 1.6 mln bpd excluding condensates –minister

Nigerian oil production, excluding condensates, is running at 1.6 million barrels per day (bpd), the country’s oil minister said on Wednesday.

Nigeria to sell 917.14 bln naira of bills from Sept 14 to Nov 30

Nigeria plans to sell 917.14 billion naira worth of treasury bills between Sept. 14 and Nov. 30, a central bank debt calendar for the fourth quarter showed on Wednesday.

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In the news: Naira dips to N367 amid dollar scarcity

In the news: Naira dips to N367 amid dollar scarcity

Punch

FG to spend N100bn Sukuk fund on road infrastructure – DMO

The N100bn targeted by the Federal Government from the Islamic bond, Sukuk, will be spent on critical road infrastructure across the country, the Debt Management Office has said.

Budget: Low revenue generation threatens funds release

The Federal Government on Tuesday said that the low revenue generation by its Ministries, Departments and Agencies was affecting the implementation of the 2017 budget.

Arik share value already eroded – AMCON

The Asset Management Corporation of Nigeria has laughed off the suit instituted by shareholders of Arik Air against the Federal Government and Ethiopian Airlines over purported talks to rescue the troubled carrier.

Aiico, Flour Mills, Nestle top losers, market sheds N63bn

Aiico Insurance Plc, Flour Mills Nigeria Plc, Nestle Nigeria Plc, Continental Reinsurance Plc and Linkage Assurance Plc emerged the top five losers at the close of trading on the floor of the Nigerian Stock Exchange on Tuesday, as equities depreciated by N63bn.

Vanguard

Oil price hits $54.25 p/b as OPEC predicts high demand, market stability

The price of crude oil has stabilised at $54.25 as the Organisation of Petroleum Exporting Countries, OPEC, predicted increased stability of the market, yesterday.

FG to award 80% of crude lifting to NNPC

The Federal Government has disclosed its plan to allocate 80 percent of crude lifting to Nigerian National Petroleum Corporation, NNPC Trading, an arm of the Corporation which evolved from the merger of its trading companies.

Militants ask FG to release licenses for 10 modular refineries

Reformed Niger Delta Avengers, RNDA, and nine other militant groups have called on the Federal Government to issue 10 licences to the Host Communities of Nigeria, HOSTCOM, for the take-off of modular refineries in the Niger Delta.

Nigeria oil will no longer be profitable soon – Osinbajo

Vice President Yemi Osinbajo, yesterday in Ondo State declared that the country’s oil will no longer be profitable in no distant future.

This Day

FG, States’ Public Debt Stock Hits N19.6tn

Nigeria’s public debt stock for both the federal government and the states as at June 30 stood at N19.63 trillion, a report by the Debt Management Office (DMO) has revealed.

States Netted N820.7bn in IGR in 2016

Internally Generated Revenue (IGR) of most states in Nigeria rose by 20 per cent to eventually settle at N820.7 billion in 2016, despite the significant contraction in the economy, the Nigeria Governors’ Forum (NGF) disclosed Tuesday in Abuja.

Guardian

Discos blame government for rejection of allocated electricity

The electricity distribution companies have blamed the Federal Government for their rejection of loads allocated to them, a situation that is worsening the poor power supply in the country.

Nigeria requires $16.5bn to achieve 40bn barrels oil reserves target

To achieve the set target of 40 billion barrels crude oil reserves by 2020, the hydrocarbon industry will require between $13 and $16.5billion over the next five years, the Chief Operating Officer, Gas and Power, Nigerian National Petroleum Corporation (NNPC), Saidu Mohammed, has said.

DPR strategises to recover outstanding FG’s revenues

The Department of Petroleum Resources (DPR) is set to roll out some digitalization programme to fully automate all critical operations of the organization, enhance efficiency of all its regulatory deliverables and accelerate recovery of all outstanding revenues due to government.

Operators lose 4m subscribers in one month

Although the telecommunications sector added about N1.5trillion to Nigeria’s economy in the second quarter (Q2), growth of the service providers however contracted.

The Nation

Naira dips to N367 as dollar scarcity hits BDC

The value of the naira against the dollar is declining as bureaux de change (BDC) operators say the US currency is getting scarce in the parallel market.

Why Nigeria’ll resist oil cut – Kachikwu

Nigeria will resist any attempt to curb its oil production, the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has said.

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CBN’s Volte-face narrows FX markets premium

CBN’s Volte-face narrows FX markets premium

In our H1 17 Strategy Report, we noted that the CBN could maintain its hard peg on the naira at N305/$ as higher oil receipts and proceeds from FG’s planned external borrowings bolster FX reserves. Unsurprisingly, following a strong rise in the nation’s reserves (+17.1% over H1 17 to $30.3 billion), the

CBN raised its dollar sales towards the end of February. This, together with the creation of new FX windows and relaxation of some stringent policies, lowered dollar demand at the parallel market.

Against this backdrop, the premium between the interbank and parallel market contracted to a 20-month low at the end of June even as the once-elusive portfolio flows began to trickle in. Overall, whilst CBN’s stringent FX policies had hitherto been “a kiss of death” to the currency market, which forced turnover to a record low, its eventual liberalisation policies appears to be springing the market back to life.

Fiscal nod hastens FX policy reversal

Following the instating of a N305/$ currency peg at the interbank in September 2016, the naira

held steady fairly around what was prescribed over the first half of the year. At the parallel market however, it remained feebler—falling to a record low of N520/$ in February (December 2016: N490/$) before rebounding in succeeding months. The naira depreciation in the earlier part of the year reflected lower FX liquidity (FX turnover fell to a record low of $1.4 billion in January) as CBN, in response to 2016 shocks to oil receipts, placed emphasis on dollar demand management.

Later on though, following the widening of FX market premium between interbank and parallel market to a post-floatation high of 70%1 and improvement in foreign reserves, the CBN made a U-turn with regards to its currency policies. Particularly, the apex bank created a special FX window for invisibles (i.e. personal and business travel allowance, medicals, school fees), wherein permissible users obtained FX at a concessionary rate of N375/$ which reduced demand pressures at the parallel market. In addition, the CBN relaxed the preferential FX allocation to manufacturing companies and reduced the tenor on its currency forward contracts to 60 days (vs. 180 days previously).

The impact of these measures, as well as a two-fold MoM jump in dollar sales to BDCs to a fourteen-month high of $89 million in February, underpinned a 9.5% MoM appreciation in the naira to N450/$ at the end of February. Interestingly, the policy pronouncement came a working day after the National Economic Council mandated the apex bank to take actions to stem widening parallel market premiums.

The CBN shift also followed the transfer of more executive powers to the Vice President, Professor Yemi Osinbajo, a supporter of greater NGN flexibility relative to the, then, absent President Buhari who opposed naira weakness and advocated for dollar demand curtailment. Overall, the steeper naira gain (+11% MoM to N385/$) occurred in March following an upsurge in CBN dollar sales (doubled MoM to $1.2 billion) and adjustment to the FX offer rate to both BDCs and invisibles FX window to N360/$.

 

View full July 27th Nigeria Strategy Report here

 

 

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In the news: N4.75tn pension funds invested in FG bonds

In the news: N4.75tn pension funds invested in FG bonds

This Day

NNPC Massively Stockpiles PMS to Sustain Price Crash

A daily record of operations of the Nigerian National Petroleum Corporation (NNPC) has disclosed the corporation’s plans to sustain the petrol pump price crash it started last week with a healthy build-up of stocks.

FG, IOCs Finalise Evaluation of Bids for $13.5bn Zabazaba Deepwater Project

The federal government, Nigerian Agip Exploration Limited (NAE) and Shell Petroleum Exploration and Production Company (SNEPCo) have completed the technical and commercial evaluation of bids for the main packages in the development of the $13.5 billion Zabazaba deepwater oil field in Oil Prospecting Lease (OPL) 245 within 14 months.

FG August N135 Billion Bond Fails with 41.5% Subscription

The federal government’s N135 billion bonds issued by the Debt Management Office in August was 41.5 per cent subscribed as the agency could only raise N56.05 billion from the auction.

CBN Pledges to Sustain Intervention in Forex Market

The Central Bank of Nigeria (CBN) at the weekend assured members of the public of its continued intervention in the interbank foreign exchange market in order to sustain liquidity and stability in the sector.

CBN Enforces Migration of Banks to Electronic Capital Importation Certificate

Desirous of enhancing foreign investment flow into the country, the Central Bank of Nigeria (CBN) has directed banks and other authorised dealers to immediately commence the issuance of electronic Certificates of Capital Importation (eCCI) with effect from today.

Kaduna Electric Dismisses Load Rejection Claim

Kaduna Electric has described as “factually incorrect”, the recent media report attributed to the Transmission Company of Nigeria (TCN) that it was rejecting power allocated to it for distribution to its customers.

Guardian

Financial stocks lift NSE’s turnover by N17.5bn

Heavy transactions in the shares of some banks last week, lifted the volume of shares traded, as a turnover of 887.024 million shares worth N17.450billion was recorded in 16,955 deals by investors on the Exchange.

Poor electricity supply may persist as Discos reject 1000mw daily

It may take a longer time for the country to overcome its electricity supply challenges as the distribution companies (Discos) reject generated energy from power plants.

Fresh pressure on Nigeria over oil production cut as OPEC meets

The pressure on Nigeria to reduce its crude oil production figure of 1.8 million per day is expected to increase as the Organisation of Petroleum Exporting Countries (OPEC) meets on Friday, September 22, 2017 in Vienna, Austria.

Stockbrokers canvass easier access to ASeM Board for SMEs

Capital market stakeholders have urged regulators to make the listing requirements for accessing the Alternative Securities Market (ASeM) less stringent to attract more small and medium enterprises (SMEs) participation on the platform, and grow the primary market segment of the Nigerian Stock Exchange (NSE).

Punch

FG, states borrow N7.51tn under Buhari

The Federal Government under President Muhammadu Buhari and the 36 states of the federation as well as the Federal Capital Territory have borrowed N7.51tn in the last two years, statistics have revealed.

Arik shareholders sue FG, Ethiopian Airlines for N20bn

Shareholders of Arik Air Limited have filed a N20bn suit against the Federal Government and Ethiopian Airlines over recent claims of negotiations between them for the takeover of the airline.

N4.75tn pension funds invested in FG bonds, securities

About N4.75tn of the total funds under the Contributory Pension Scheme has been invested in the Federal Government’s securities.

Vanguard

CBN to step up liquidity mop up as N333bn hit interbank

The Central Bank of Nigeria (CBN) will this week step up its liquidity mop-up in a bid to offset impact of N333 billion inflows into the interbank money market.

Stanbic IBTC attracts N413.62bn capital inflows in H1

Stanbic IBTC Plc facilitated $589.84 million, an equivalent of N216.47 billion, capital inflow into the country in the second quarter, Q2, 2017, ranking it first among financial institutions that imported capital into Nigeria.

The Nation

TCN gets $1b for expansion, others

The Transmission Company of Nigeria (TCN) has secured about $1 billion from multilateral donors, including the government of Japan, to expand and rehabilitate its facilities.

Ship import dips to N319b on forex scarcity

Importation of vessels to Nigeria has dropped from N774billion ($2.15billion) in the last two years to N319 billion ($885.9million) due to scarcity of foreign exchange (forex).

Reuters

Venezuela oil minister says inventories still too high

Venezuelan oil minister Eulogio Del Pino on Friday said global oil inventories remain too high and called on OPEC and other producers to review their global output reduction pact in order to support the sector.

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In the news: FG targets N100bn from Islamic bond

In the news: FG targets N100bn from Islamic bond

Punch

Why Nigerians haven’t felt impact of exit from recession – NBS boss

The Statistician-General of the Federation and Chief Executive, National Bureau of Statistics, Dr. Yemi Kale attributed the non-impact of the exit from recession on the citizens to the structure of the economy, which is still largely driven by oil.

FG offers tax holidays, duty waivers to mining investors

The Federal Government has offered tax holidays and duty waivers on imported mining equipment to foreign investors in the nation’s mining industry.

Budget: FG targets N100bn from Islamic bond, sukuk

The Federal Government will today (Thursday) commence activities preparatory to the issuance of N100bn non-interest bearing Islamic bond, better known as sukuk.

Naira closes at 365/dollar despite CBN interventions

The naira closed at 365 per United States dollar at the parallel market on Wednesday, the same rate it closed on Tuesday despite the Central Bank of Nigeria’s injection of $250m in the foreign exchange market on Tuesday.

Crude oil price rises to four-week high

Oil futures extended a rise on fears of potential damage to the United States oil production from Hurricane Irma, as well as renewed demand for crude from restarted refineries in the Gulf Coast.

Guardian

Guinness, Redstar others lift NSE’s indices by N71b

Following price gains recorded by most blue chip companies, during transactions on the trading floor, the Nigerian Stock Exchange (NSE) closed in an upbeat yesterday, as market capitalization appreciated by N71billion.

Total, Greenville float virtual pipeline to boost domestic gas supply

Total Exploration and Production Nigeria Limited (TEPNG), and Greenville Oil and Gas Limited have floated an initiative that will process raw gas into domestic Liquefied Natural Gas (LNG) to boost power generation and industrialization in the country.

India invests $10b in Africa as Nigeria seeks ICT growth

Through the Indo-Africa trade arrangement, India has facilitated an investment worth about $10 billion to the African Continent in the last few years.

NBS: Stanbic IBTC attracts N413.62bn capital inflow in three months

Stanbic IBTC, a member of the Standard Bank Group facilitated a $589.84m capital inflow into the country, ranking it first among financial institutions that imported capital into Nigeria in the second quarter of 2017.

The Nation

WAPCo’s gas supply dips by 50% as demand falls

Reduced demand, pipeline vandalism and inadequate supply have made gas supplies by the West African Pipeline Company Limited (WAPCo) to drop by over 50 per  cent to 70 million standard cubic feet per day (mmscf/d) from the 150mmscf/d capacity.

Why we okayed $200m outlay from NCIF, by Kachikwu

The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, who is also the chairman, Governing Council, Nigerian Content Development & Monitoring Board (NCDMB), has said the inability of Nigerian oil firms to access funds from banks, at reasonable lending rates, necessitated the approval to disburse $200 million to such firms from the Nigerian Content Intervention Fund (NCI Fund).

BEDC, Thames Energy, Delta seal 20Mw plant deal

Efforts at ensuring that over 200 commercial entities in Ozoro Local Government Area of Delta State benefit from power supply have got a boost as the Benin Electricity Distribution Plc (BEDC) signs a Memorandum of Understanding (MoU) with Thames Energy Limited and the Delta State Government on the construction of 20megawatts (Mw) power plant.

This Day

PZ Cussons Grows Profit to N3.8bn, to Pay N1.9bn in Dividends

PZ Cussons Nigeria Plc yesterday recorded a profit after tax of N3.886 billion for the year ended May 31, 2017, showing an increase of 73 per cent over the N2.129 billion posted in 2016.

FirstBank Partners Visa on Mobile Payment Solution

FirstBank of Nigeria Limited in partnership with Visa has introduced a mobile payment solution – mVisa. This mobile solution allows customers pay for goods and services by scanning a QR code using the FirstMobile App on their smart phones.

Bloomberg

Nigerian Sovereign Wealth Fund Grows to $2 Billion, CEO Says

Nigeria’s sovereign wealth fund stood at $2 billion this month with the investment agency seeking further growth through agriculture and the addition of asset management, its chief executive officer said.

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Source: Blog

In the news: CBN injects $250m to lift naira

In the news: CBN injects 0m to lift naira

Punch

CBN injects fresh $250m to lift naira

The Central Bank of Nigeria on Tuesday injected $250m into the various segments of the inter-bank foreign exchange market, in order to lift the naira against other major currencies.

Exit from recession fails to lift stocks

Despite Nigeria exiting recession on Tuesday, the equities market closed in the red, shedding N35bn.

Naira appreciates against dollar

The Nigerian currency gained N1 to exchange at N364 to the dollar, stronger than N365 posted on Friday, while the Pound Sterling and the Euro closed at N470 and N430.

Buhari, economists, others caution against celebrating Nigeria’s exit from recession

The news that the nation exited its worst recession in 25 years was received with cautious optimism by a cross section of Nigerians on Tuesday, with many economists and analysts saying the 0.55 per cent growth in the Gross Domestic Product in the second quarter was slower than expected.

This Day

 Intel’s Volpi Steps Up Battle Against Wale Tinubu over Control of Oando

One of the founders and majority shareholder of Intels Nigeria Limited, operator of the oil and gas logistics terminals in Onne, Rivers State and Warri, Delta State, Mr. Gabriele Volpi, has stepped up his battle against the group chief executive officer of Oando Plc, Mr. Wale Tinubu, over control of Oando, citing alleged mismanagement, cooked books and huge debts.

ETI Secures $250m Loan Facility to Boost Operations

Ecobank Transnational Incorporated (ETI), the Lome, Togo-based parent company of the EcobankGroup Tuesday signed a five-year senior unsecured loan facility of $250 million from Deutsche Bank AG.

 BUA Group Invests $2bn in Nigerian Cement Industry

BUA Group, one of Nigeria’s largest conglomerates, has invested about $2 billion in the Nigerian cement industry with capacities in excess of over 12 million tonnes per annum.

CPS: 21 PFAs Generate N6.5tn Assets in 12 Years

The 21 Pension fund Administrators operating in Nigeria, between 2004 and 2017 generated a total of 7,592,157 contributors who contributed N6.6 trillion assets.

FG Plans New Model to Equalise Gas Prices across Nigeria

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu disclosed that federal government would work out a new gas pricing and supply model – likely to be the type adopted by it to ensure equal pump price for petrol across Nigeria, to get gas to all parts of Nigeria, especially the northern states.

Vanguard

AMCON denies ceding Arik to Ethiopian Airlines

The Asset Management Corporation of Nigeria (AMCON) has denied reports that it was negotiating with Ethiopian Airlines to manage Arik Airline.

DISCOs inability to transmit 6500mw threatens FG 2020 targets

With the increased demand for electricity fueled by population growth and rising urbanization in the country, stakeholders in the power sector have said that the Distribution Companies, DISCOs, lack the capacity to wheel 6500 megawatts (mw) of electricity transmitted to them.

Dangote invests N400bn in sugar backward integration projects

Dangote Group has so far invested over N400 billion in sugar backward integration projects under the Nigeria Sugar Master Plan, (NSMP, being implemented by the National Sugar Development Council, NSDC, to make the country self-sufficient in sugar production.

Guardian

Egbin to construct N432 billion power plant

Egbin Power Plc has unveiled plans to invest $1.2 billion (N432 billion) for the construction of a 1,575 Mega Watts plant in Nigeria. The plant which is expected to be completed by 2020, is expected to increase the supply of electricity to homes and businesses in the country.

Reuters

Nigeria’s cabinet meeting cancelled for second time since Buhari’s return: Nigeria has cancelled its weekly cabinet meeting for the second time since President Muhammadu Buhari returned from three months of medical leave in Britain.

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Source: Blog