Oil resumes rise after OPEC cut

Oil prices resumed their rise Thursday and held above the $50 barrier following OPEC’s decision to carry out its first output cut in eight years.
The Organization of the Petroleum Exporting Countries at a meeting in Vienna on Wednesday agreed on specific targets to enact a preliminary deal struck in September designed to ease a global crude supply glut and boost prices.
Many analysts had expected the producers’ cartel to fail to reach a deal as major players like Iran, Iraq and Saudi Arabia remained divided ahead of the meeting.
Crude futures prices surged more than 10 percent immediately after the OPEC deal.
At 0630 GMT Thursday, after a brief dip in early Asian trade, US benchmark West Texas Intermediate for January delivery was up 70 cents or 1.42 percent at $50.14, while Brent crude for February was 81 cents or 1.6 percent higher at $52.65.

Workers ground Bristow operations in Lagos, Port Harcourt, Eket

Workers in the aviation sector yesterday staged a protest march that grounded operations of Bristow Helicopters in Lagos, Port Harcourt and Eket.
The employees, under the aegis of National Association of Aircraft Pilots and Engineers (NAAPE), barricaded offices of the airline in the three cities in protest of welfare and alleged plan to sack more workers.
In a swift reaction, the management blamed the development on the poor run of business in the oil and gas sector.
Recall that the company, which services the oil and gas industry, has had a dip in business since the global oil market crash. Following the downturn, Bristow, in the last 12 months, released 118 expatriate pilots and engineers as well as 21 Nigerian pilots and engineers from its payroll.
NAAPE said the shutdown of the helicopter company was due to management’s alleged redundancy

Closed banks: NDIC appoints 10 agent banks to collect depositors’ claims

The Nigeria Deposit insurance Corporation has called on depositors who lost their money in any closed banks to file their claims through the appointed 10 agent banks nationwide.
The Managing Director of the Corporation, Alhaji Umaru Ibrahim, made the call on Wednesday in Kano at NDIC’s Special Day at the ongoing 37th Kano International Trade Fair.
According to Ibrahim, the appointed agent banks include First Bank of Nigeria Plc, United Bank of Africa, Zenith Bank and Wema Bank.
Others are Heritage Bank, Union Bank, Fidelity Bank, Skye Bank, Unity Bank and Diamond Bank.
Ibrahim said in addition, depositors could also file such claims in any of its Zonal Offices located across the country for the payment of such claims.
He said the corporation had also extended deposit insurance coverage to the subscribers of non-interest banking institutions under the Shari’ah compliant banking services to the maximum limit of N500, 000 per depositor.
In addition, Ibrahim said the corporation had developed framework on Pass-Through Deposit Insurance Scheme to protect subscribers of Mobile Money Operators with a maximum insured limit of N500,000 per

Lagos, GE pledge to boost economy through SMEs

Lagos State Government and General Electric (GE) on Tuesday, pledged to boost Nigeria’s economy through the development of necessary skills that will empower Small Medium Enterprises (SMEs) to drive growth in the country.
The SME sector is seen as the country’s engine of growth, in terms of development and industrialisation, wealth creation, poverty reduction and employment creation. Majority of Nigerian entrepreneurs are SME players, who employ at least 10 people and above.
Speaking at the launch of a hub, ‘Lagos Garage’ built by GE for advanced manufacturing-based innovation, strategy development, idea generation and collaboration, experts said desired growth in Africa, particularly Nigeria is only feasible through sustained effort towards empowering SMEs
The United States multinational conglomerate, GE operations span appliances, aviation, finance, energy, healthcare, ideas, intelligent platforms, lighting, oil and gas, power.
In Nigeria, GE’s interests are mostly in power and oil and gas, in which it has entered into many contractual agreements with the Federal and some state governments. However, the company is very secretive about its

USAID, Chi Farms partner to raise 4,000 tonnes of fish

United States Agency for International Development (USAID) and Chi Farms Limited have entered into a partnership to enhance capacity of small-scale farmers in the country and to add about 4,000 tonnes of catfish into the nation’s food basket yearly.
The partnership, which is part of the U.S. government’s Feed the Future initiative, aims to assist entrepreneurs to become successful catfish farmers.
Chi Farms, according to the project layout, will ensure supply of quality feed and catfish juveniles to the farmers by enhancing its feed milling and hatching capacities.
Executive Director, Chi Farms Ltd, Martin Middernacht, said that the partnership would add positively to the overall food security in Nigeria.

NNPC bid: We’ll ensure accountability – Baru

Dr Maikanti Baru, Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, said the bid for the sales and purchase of Nigerian crude oil grades will be transparent.
Baru said this in Abuja on Thursday when he declared the process open. ‎
According to him, the crude oil contract tenders‎ are to ensure transparency, enshrine accountability and conduct business in line with best global practices.
Baru said: “Today’s event marks yet another turning point in our quest to further enshrine transparency and accountability, two critical core values of our Corporation.
“Our focus as a national oil company is to enhance our production volumes, ensure the best value is realised through competitive marketing of our crude grades to international refineries and traders.
“In line with this aspiration, NNPC is collaborating with key stakeholders to improve on the overall security of our production sites and to ensure the safety of our environment.

Naira weakens to 470 on fresh dollar scarcity

The naira weakened to 470 on Thursday, from 465 on Wednesday, as fresh dollar scarcity hit the official and parallel foreign exchange markets.
The local currency had appreciated to around 450 after security agents carried out series of raids on Bureau De Change operators, who sold the greenback above the N400 stipulated by the Central Bank of Nigeria.
Security agents have been raiding the offices of the BDC operators, ordering them to sell dollar at a lower rate in a bid to break the fall of the local currency.
However, the naira started recording losses gradually again as scarcity of the greenback weighed on the forex markets.
“The clampdown on the black market operators by security agents has negatively impacted dollar supply to the market,” one Bureau de changer operator told Reuters.
Economic and currency experts have said getting security agents after the BDC operators cannot get the

NSE ends eight-day loss, 19 stocks gain

Trading on the floor of the Nigerian Stock Exchange ended on a positive note on Wednesday as 19 stocks recorded gains with market capitalisation appreciating by N20bn.
The NSE All-Share Index snapped its eight-day losing streak as most key sectors traded in positive territory.
A total of 165.725 million shares valued at N1.126bn exchanged hands in 2,484 deals.
The NSE market capitalisation rose to N8.784bn from N8.764bn, while the NSE ASI closed at 25,517 basis points from 25,461.34 basis points.
The financial services sector led gains after advances in Guaranty Trust Bank Plc, United Bank for Africa Plc and Ecobank Transnational Incorporated Plc by 1.19 per cent, 1.18 per cent and 0.82 per cent, respectively.
The consumer goods and industrial goods sectors also closed higher following gains across PZ Cussons Nigeria Plc, Glaxo Smitkline Consumer Nigeria Plc, Nestle Nigeria Plc and Cap Plc by 4.90 per cent, 3.40

W’Bank budgets N12.2bn to clear Apapa gridlock

The World Bank is to support Nigeria’s maritime sector with N12.2bn ($40m) to help clear the traffic congestion that characterises most roads around the Nigerian Ports Authority in Apapa, Lagos, the Nigerian Shippers Council has said.
According to the NSC, the National Freight Information and Transport Hub, an arm of the World Bank, is working with the NPA on how the funds will be used to clear the trucks and tankers that cause heavy gridlock at Apapa, Orile, Tin Can Island and other areas around the Lagos port complex.
The Executive Secretary, NSC, Mr. Hassan Bello, told journalists in Abuja during a press briefing that the move was aimed at making the NPA more efficient, adding that it would also ensure that oil pipelines were used to transport petroleum products instead of tankers.
He said, “No matter how efficient the terminal is, if you don’t have the road to evacuate cargo, how will you move your goods out of the ports? So, there must be an intervention and in that regard, the NSC has

Recession: FG plans tax relief for manufacturers – Adeosun

The Federal Government, in a bid to ease the burden of the current economic recession on the manufacturing sector, is planning some form of tax relief for the sector.
The Minister of Finance, Mrs. Kemi Adeosun, dropped the hint on Wednesday in Abuja while responding to questions from journalists at the end of the Federation Account Allocation Committee meeting.
She said the tax relief was part of measures by the Federal Government to reduce the negative impact of the foreign exchange crisis on the sector.
Based on the Gross Domestic Product report for the third quarter released by the National Bureau of Statistics, the manufacturing sector’s growth rate was recorded at -2.93 per cent year-on-year.
This is lower by 1.02 percentage points than what was recorded in the second quarter of the year.
The report had blamed the decline in manufacturing activities to the continued drop in the naira to dollar exchange rate, which has made industrial inputs more expensive.

Brazil oil giant gets bribe money back

Brazilian prosecutors leading a major corruption investigation have returned $60m (£49m) to state oil giant Petrobras.
The money was retrieved from senior politicians, civil servants and businessmen who agreed to cooperate with the investigation.
The kickback scheme cost Petrobras an estimated $1.8bn, said company boss Pedro Parente.
The scandal has rocked the country and led to mass street protests.
Dozens of politicians and some of Brazil’s wealthiest businessmen have been arrested as part of the inquiry, known as Operation Car Wash, over the past two years.
Under new legislation, they were allowed to tell what they knew and return some of the corruption money in exchange for shorter sentences.
Many in Brazil criticised the operation, saying it was politically motivated and targeted mostly members of the

Innoson delivers 1st indigenous vehicles to military

To enhance the fight against the Boko Haram terrorists in the country, Nigeria’s foremost indigenous auto plant, Innoson Vehicle Manufacturing (IVM) Ltd, has designed and built IVM G12 series, a special purpose range of off-road light trucks, for use by the military and related security organisations.
The first indigenous military vehicle was officially handed over to the Nigerian Army in Maiduguri, Bornu State, last week to enhance the operations against insurgency.
Presenting the IVM G12 series to the Chief of Army Staff, Lt Gen Tukur Buratai, at the tactical headquarters of Operation Lafiya Dole, Maimalari Barracks in the Borno State capital, the chairman, Innoson Group, Dr Innocent Chukwuma, assured that the vehicle would be at home on the challenging terrains the army is used to in its operations.
Chief Chukwuma introduced Innoson IVM G12 series as a highly mobile and tactical pick-up van, with double reinforced shock absorbers that can show strength and ability to cope with military functions, especially in the Northeastern part of the country.
Receiving the truck, General Buratai praised Innoson’s vision of manufacturing vehicles that serve the specific

Buhari demands transparency from Boards of NNPC, NCDMB, NNRA

President Buhari in a group photo with Members of Nigerian Content Development Monitoring Board (NCDMB) shortly after inaugurating Board of Parastatals in the Ministry of Petroleum Resources at the State House on 18th November 2016.Facebook/Femi Adesina

President Muhammadu Buhari yesterday inaugurated the boards of the Nigerian National Petroleum Corporation (NNPC), Nigerian Content Development Monitoring Board (NCDMB) and the Nigeria Nuclear Regulatory Authority (NNRA), with a call on the board members to uphold transparency in the management of ‎the organizations.
He also asked them to come up with new ways to overcome the present economic challenges.
Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, will chair the boards of the agencies under his ministry.
In a short remark, the president charged the members to ensure propriety in the management of the agencies.
The president noted that the boards came at a time when the global petroleum industry was going through a downturn in purchase which he said, had also translated into dwindling production by most producer nations.
He said Nigeria had been hit by the misfortunes of oil industry adding that several countries had been hit much harder.

Brexit will boost UK-Nigeria business ties – Envoy

British High Commissioner to Nigeria, Paul Arkwright, on Friday said the decision by the UK to exit the European Union would boost business ties between it and Nigeria.
Arkwright said this in Lagos at a roundtable organised for workers and business entrepreneurs.
He said the target of the British Government was to grow its market.
According to him, relations between Nigeria and the UK will become stronger after exiting the EU.
He added that the British Government had decided to leave the EU and it would not renege on its decision.
The envoy noted that the British Government would give priority to smooth transition that would minimise disruption and there would be no immediate changes to their relationship with the EU.
Arkwright said: “Until we exit formally, UK will remain a member of the EU with all the rights and obligations of membership.”
Arkwright said the UK was working toward encouraging more businesses in Nigeria and would invest and

NNPC set to commence production of aviation fueI in Port Harcourt refinery

As part of the management of Port Harcourt Refining Company (PHRC) has announced its readiness to commence the production of Aviation Turbine Kerosene (ATK) popularly known as aviation fuel.
This part of efforts the Nigerian National Petroleum Corporation (NNPC), to reposition company for profitability in line with the 12-point agenda.
The Managing Director of PHRC, Dr. Bafred Enjugu, who disclosed this in a presentation made to the Group Managing Director of NNPC, Dr. Maikanti Baru, during an official tour of the 210, 000 barrels per day facility, said the refinery has met all the international parameters for the production of aviation fuel.
“The good news from our stand point is that we have scored 24 out of the 24 parameters for the production of aviation fuel and I must say that this is made possible because of the never-give-up attitude of workers of the great PHRC,” he said.
Dr. Enjugu said the refinery has successfully blended ATK and was only waiting for appropriate conditions to commence full scale production of the product in response to demand of the aviation sector.

PENGASSAN may declare strike over job losses in oil sector

There are indications that the Petroleum and Natural Gas Senior staff Association of Nigeria (PENGASSAN) may begin industrial action soon if the job losses in the oil and gas sector are not halted.
The President of the union, Olabode Johnson, who said this in Abuja, berated oil companies for reneging on the agreement reached over pathways to halting job losses and paying sacked workers their entitlements in full.
“What is very sad in this country is that high-level meetings are held at the ministerial level and decisions arrived at are not taken seriously by the International Oil Companies (IOCs) and other oil companies on issues that have to do with the welfare of workers. We now have a situation where the oil companies are now reneging on the agreement. This is a slap on the face of the Federal Government of Nigeria.
“We have said times without number that these IOCs cannot do what they are doing in Nigeria in their countries of origin. If they find it difficult to obey our laws here, then they should pack their equipment and

Trump plan to boost oil, coal could send prices lower

President-elect Donald Trump has pledged to boost the oil and gas sector and bring back coal, reversing President Barack Obama’s efforts to encourage renewable energy and cut dependence on fossil fuels.
But analysts say Trump’s policies could serve to worsen the global energy glut, which would reduce prices while doing little to revive the fortunes of “Big Coal.”
Trump has made no secret of his support for fossil fuels. His policy advisors include top oil industry lobbyists, fracking king Harold Hamm, and oil-rich North Dakota’s congressman Kevin Cramer.
Trump has promised to eliminate regulations restricting fracking; support oil and gas pipeline construction, including the Keystone XL project blocked by the Obama administration; open now-restricted federal lands and offshore areas, for exploration, including Alaska; and end Obama’s 2015 Clean Power Plan, which

Billionaire Warren Buffett invests in 3 big US airlines

Billionaire investor Warren Buffett has taken stakes in three large US airlines, in a $1.3 billion bet that marks a sharp U-turn of his antagonistic views on the sector.
Buffett’s Berkshire Hathaway Inc. invested $797 million in American Airlines, $249 million in Delta Air Lines and $237 million in United Continental Holdings, according to a regulatory filing reviewed Monday by AFP.
Berkshire Hathaway also took a stake in Southwest Airlines, CNBC television network reported Monday.

NNPC appoints, redeploys management staff

The Nigerian National Petroleum Corporation, NNPC, has announced the appointment and redeployment of top Management staff across board in a major exercise said to be designed to reflect operational realities and ensure sustained performance and profitability.
In a podcast to the staff, Group Managing Director of the Corporation, Dr. Maikanti Baru, said that the changes were informed by the desire to consolidate on the restructuring exercise through realigning jobs with requisite competences and experiences in line with international best practices, while taking deliberate measures to ensure fairness and equity as well as the capacity to deliver.
“As you might have heard, His Excellency Mr. President has approved the High Level Organogram of the Corporation and appointment of Staff into various positions. Most importantly, the changes were done in the

FG yet to take decision on NNPC’s NSE listing

The federal government has not taken a precise decision on the proposed listing of the stocks of the Nigerian National Petroleum Corporation (NNPC) on the Nigerian Stock Exchange (NSE) or any other stock exchange, it was learnt on Monday in Abuja.
According to authoritative sources within the ministry of petroleum resources, the proposal to list the stocks of NNPC on the exchange after its restructuring as contained in a new draft national oil policy has not yet been approved by the government.
The draft policy document was released last week by the ministry of petroleum resources. It indicated that parts of the stocks of the NNPC would be listed for trading at the NSE or other exchanges after its restructuring and corporation.
According to it: “The NNPC will be made autonomous from the state, it will relinquish all its policy making

AfreximBank reiterates need for knowledge, trade in development

The urgency for focus on the economic benefits of knowledge and the role of trade in the development processes of the continent has again been brought to the fore by the African Export-Import Bank (AfreximBank).
The imperatives of the identified development catalysts formed a major part of the book titled: “Foundations of Structured Trade Finance,” by the President of AfreximBank, Dr. Benedict Oramah.
Oramah told his guests that it was the lack of appreciation of the power of knowledge that led to Africa being left behind in the race for development.
“While South East Asian economies realised back in the 1970s that it was a knowledge economy that could be trade–led and that it was a trade-led economy that could innovate and be competitive, African economies lost focus, consumed by commodity illusion and defensive import substitution strategies,” he lamented.
Consequently, Africa, which was well ahead of developing Asia, including China, in the 1960s and early

Fraudsters target 63.7m banks accounts, e-payment channels

Fraudsters have continued to get unauthorised access to bank accounts and other electronic payments platforms .
Statistics from the Nigeria Inter Bank Settlement Scheme (NIBSS) indicate there are 93 million bank accounts in the country with 63.7 million of them being active. As at September 2016, operators of current accounts in the country stood at 25.4 million, with savings account having 65.4 million holders while there were 2.48 million other accounts users in the country.
It was learnt that the introduction of the Bank Verification Number (BVN) by the Central Bank of Nigeria (CBN) in collaboration with the banks in 2015 showed that there are about 28 million unique identity accounts in the country.
With cybercriminals on the prowl, checks showed that customers of some top commercial banks in the country are currently being bombarded with suspicious phishing mails targeted at their daily Internet banking transactions.

NCC to sanction 13 operators over unsolicited telemarketing

The Nigerian Communications Commission (NCC) on Monday said it would sanction 13 telecommunications operators for failing to comply with the ‘2442 Do Not Disturb (DND)’ directive on unsolicited telemarketing.
According to a statement signed by the NCC’s Director of Public Affairs, Mr Tony Ojobo, the directive was issued on April 20, 2016.
Ojobo said that the 13 operators included: Airtel Network Ltd., MTN Nigeria, Globacom Nigeria, Smile Communication, Visafone Communications, Ntel, Etisalat, Multi-Links, Starcomms, Danjay Telecoms, Gamjitel Ltd., Megatech Engineering Ltd. and Gicell Wireless.
According to him, the service providers have been given another one-week ultimatum, from Monday, Nov. 14, 2016, to remedy the situation or face the sanctions enshrined in the directive.
“Worried by the non-compliance by the operators, occasioned by a deluge of complaints by subscribers

Naira appreciates after DSS action on currency dealers

Despite last week’s raid and arrest of some licensed currency dealers who were said to be selling foreign exchange (FX) above the prescribed limit, the naira appreciated on both the interbank and parallel segments of the market.
Precisely, on the interbank FX market, the spot rate of the naira climbed N1.45 to close at N304.75 to the dollar last Friday, stronger than the N306.50 to the dollar the previous day.
Also, on the parallel market, the naira appreciated by N5 to trade at N455 to the dollar at the weekend, compared with the N460 to the dollar the day before.
But on the Bureau De Change (BDC) segment, the nation’s currency depreciated to N405 to the dollar, from about N400.
It was reported that security operatives from the DSS had raided the offices of some BDCs in Lagos and Abuja and arrested dealers for selling above the stipulated exchange rate.

Siemens buys software maker Mentor Graphics for $4.5bn

Siemens AG agreed to buy Mentor Graphics Corp. for $4.5 billion in its biggest acquisition since 2014 as the German engineering company extends its industrial software capability.
Siemens will pay $37.25 a share for Wilsonville, Oregon-based Mentor, the industrial giant said in a statement on Monday. That’s 21 percent above the closing price on Friday. Elliott Management Corp., which owns 8.1 percent of Mentor’s shares, backs the offer, Siemens said.
The acquisition “will allow us to supplement our world-class industrial software portfolio,” Siemens board member Klaus Helmrich said in the statement. “It will complement our strong offering in mechanics and software with design, test and simulation of electrical and electronic systems.”
The deal follows the $970 million January purchase of CD-adapco of the U.S. as Siemens seeks to grow its

Bank of Industry disburses N36bn to agro-allied sectors in 2016

The Bank of Industry (BOI) has disclosed that it has disbursed over N36 billion within nine months in 2016 to agro-allied sector of the economy in the country.
Speaking at the Lagos International Trade Fair SMEs forum organized by the bank over the weekend, Regional Head, BOI, Mr. Obaro Osa disclosed that the bank plans to move its loan advances from $2.7 billion in 2014 to $5.4 billion in 2019 in order to drive home its mission statement.
He said: ‘‘it is imperative to know that BOI’s non-performing loan ratio is less than 4 per cent. Our mission is to transform Nigeria’s financial space by supporting the large, the medium and small scale in a bid to bring life to entrepreneurship”.
He noted that the bank is hell bent on expanding its footprints from 15 state offices to 19 offices, revealing that it has a significant project for those in exports.
“Graduate Employment Fund focuses on Youth Corpers with a minimum of N2 million whereas the YES

Nigeria’s pipeline breaks drop to 221 points in August

The Federal Government’s efforts in tackling the issue of pipelines vandalism have shown remarkable progress, as disruption of oil flow dropped to 221 in August, down from 311 points in July, according to the latest data from the Nigerian National Petroleum Corporation (NNPC).
It disclosed that in August 2016, there was 28.94 per cent drop in the number of pipeline vandalised points relative to July, 2016.
The Corporation stated in its August Monthly Financial Report (MFR), released, that the spate of pipeline vandalism in the country has shown remarkable improvement, following Federal Government and NNPC’s sustained engagements with the Niger Delta militants.
In spite of this progress, the NNPC report also indicated a significant reduction in its trade deficit to ₦11.22 billion against the ₦24.18 billion reported July, 2016.
Although, the Group classified it as a remarkable improvement, explaining that the success was largely due to increase in Pipelines and Product Marketing Company (PPMC’s) coastal sales, and

Dollar tumbles against yen, euro on strong Trump showing

The dollar tumbled against the yen and euro while the Mexican peso fell off a cliff as polling results in the knife-edge US presidential race pointed to a strong showing by property mogul Donald Trump.
The greenback plunged 3.8 percent to 101.50 yen while it lost almost two percent against the euro, which bought $1.1224 in Tokyo trading.
The peso, which has become a proxy for the property mogul’s chances of becoming US president, slumped to below 20 against the dollar, an historic low.
Financial markets have favoured Democrat Clinton over Republican Trump, whose wild policy pronouncements have sown uncertainty.
“Of course, I can’t say anything definite at the moment, but the market atmosphere reminds me of that five months ago,” Daisuke Karakama, market economist at Mizuho Bank said, referring to the Brexit shock.
“Mr Trump has made it clear that he hates a strong dollar, which is a threat” to the floating-rate system, he added.

NAICOM sacks ‘fake directors’ from insurance firms

The regulatory order placed on Goldlink Insurance Plc and International Energy Insurance (IEI) and others by the National Insurance Commission (NAICOM) is yielding results.
The commission has booted out some directors from the companies.
Similarly, the Commission claimed that a particular chairman returned N66 million cash looted from a risk bearing firm.
Commissioner for Insurance, Mohammed Kari, who spoke with reporters in Gombe, Gombe State, said parties that engaged in corrupt practices would be reported to anti-graft agencies for prosecution.
He said shareholders who looted shares without paying for them had been dragged to the Economic and Financial Crimes Commission (EFCC).
He alleged that at Goldlink Insurance, some shareholders acquired claims without paying, adding that genuine shareholders of the companies have been identified.
He said: “There are two types of interventions. These are direct intervention and regulatory

Oil industry must invest to ensure supplies – OPEC

The OPEC cartel warned Tuesday that the oil industry needs to step up investments to guarantee sufficient supply as low prices stimulate demand.
“Given the demand and supply outlook, there is a need for significant investments across the entire industry,” the Organization of the Petroleum Exporting Countries said in its annual report on the sector.
The 14-nation group, which supplies around a third of global crude, said it sees a need for around $10 trillion of oil-related investments between now and 2040.
“While the recent oil market environment has been one of oversupply, it is vital that the industry ensures that a lack of investments today does not lead to a shortage of supply in the future,” the report warned.
Oil companies have slashed investment, cancelling or postponing projects, as they react to the price of crude falling from over $100 barrel in mid-2014 to under $30 at the beginning of this year.
Prices have since recovered to around $45 per barrel, but the market still remains saturated with supplies, and the cartel now expects prices to increase only slowly and thus contribute to an

World Bank supports 11, 000 tomato farmers in Kano

In the last 10 months, the FADAMA II Additional Financing project financed by the World Bank has supported 10845 farmers comprising 585 youths, 1575 females and 8685 males.
The support, according to Kano State Coordination Office of the programme, was facilitated through the signing of memorandum of understanding between Dangote Tomato Company and Fadama Production Cluster Group on profitable marketing of tomato.
In its Project Implementation Report presented to the Dr. Adetunji Oredipe-led World Bank/FGN 6th Mission on Fadama II Additional
Financing (AF), which visited Kano State, the State Project Coordinator, Alhaji Sha’aibu Sulaiman, said the project similarly, in 2016 cropping season, recorded a disbursement of 89, 195 and 110 for rice, sorghum and tomato production groups respectively.
Sorghum and rice farmers were equally well linked to Grand Cereal and popular rice farm off takers and through collaboration with ICRISAT, sorghum farmers were also linked to Honeywell Company, demanding 150,000mt of sorghum from Fadama farmers in Kano.

Rising NPLs: Nigerian banks hold strong buffers – CBN

Moody’s Investor Service, an international rating agency, last weekend made public its ratings of seven Nigerian banks.
The report is similar to the stance of the Central Bank of Nigeria that despite the headwinds being faced by the banking industry, there is enough buffer capacity to withstand the storm.
This is coming after some reports said the Nigerian banking industry is in a full blown crisis. Non-performing loans in the industry has risen to an average of 11 per cent with one of Nigeria’s top tier banks recording NPL level of 23 per cent.
While some banks may be in need of capital, the apex bank had assured that Nigerian banks are strong enough to absorb the losses that may arise from the non-performing loans. Non-performing loans in the industry had risen from 5.3 per cent as at the end of December 2015 to 11.7 percent at the end of June, way above the regulatory ceiling of five percent, according to

Nigeria, D8 nations agree to increase trade by $500bn

The Chambers of Commerce and Industry of eight developing countries, otherwise known as D-8 have agreed to increase trade volume among member countries to the tune of $500 billion by the year 2023.
The countries are Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey.
This pact was contained in a communiqué issued at the end of the D-8 Chambers of Commerce and Industry meeting held at Izmir, Turkey in October 2016.
A copy of the communiqué made available to journalists yesterday in Kaduna by the President of Kaduna Chamber of Commerce and Industry, Dr. Abdul Alimi Bello, who was at the Izmir, Turkey, said they planned to enhance trade amongst the D-8 countries, where the countries have comparative advantage: Bangladesh in silk and mango; Turkey in culture fishing, leather and

Power: FG signs $112m gas supply agreement with Seven Energy

Efforts to bridge gas supply gap to power generation companies has led to the inking of gas supply agreement between the federal government and Seven Energy International Ltd.
The $112 million Partial Risk Guarantee (PRG) agreement is expected to enhance supply of natural gas to the Calabar NIPP.
The gas, under the agreement, would be delivered by Seven Energy’s subsidiary Accugas, to the 560 MW Nigerian Integrated Power Project (NIPP), Calabar, Cross River State.
The Partial Risk Guarantee is a financial instrument that will secure the supply of up to 130 million cubic feet per day (“MMcfpd”) of natural gas to NIPP Calabar, thereby enabling the consistent generation of an additional 560 MW of electricity to the national grid, approximately 20 percent of current power generation in Nigeria.

Equities market gains N11bn as 18 stocks appreciate

The stock market (equities category) appreciated by N11bn as 18 stocks recorded gains amid 16 laggards.
A total of 187.602 million shares valued at N1.312bn were traded in 3,065 deals.
The Nigerian Stock Exchange market capitalization rose to N9.36tn from N9.349tn, while the NSE All-Share Index closed at 27,252.48 basis points from 27,220.09 basis points.
The NSE ASI advanced by 0.12 per cent, bringing the year-to-date return to 4.85 per cent (negarive). However, volume traded and market turnover declined by 14.69 per cent and 30.08 per cent, respectively.
Topping the gainers’ chart was Eterna Plc, which appreciated by 9.96 per cent to close at N3.09. The counter was trailed by Okomu Oil Palm Plc, which rose by 9.18 per cent; Redstar Express Plc gained five per cent; Unity Bank Plc appreciated by 4.76 per cent, and Learn Africa Plc posted a 4.29 per cent gain.
On the other hand, UAC Property Development Company Plc led the decliners’ chart, depreciating

Erisco Foods exits Nigeria, moves to China

A leading indigenous local tomato paste manufacturer, Erisco Foods Limited, has made good its threat of shutting down the $150bn plant and relocating its manufacturing base to a location outside Nigeria.
The Chief Executive Officer, Erisco Foods Limited, Chief Eric Umeofia, announced on Tuesday that the company was winding down operations preparatory for its final exit from the country.
He said that he was moving the factory to China where he already had a thriving business, adding that from there, he would be manufacturing and exporting tomato paste back to Nigeria, as it was far cheaper doing so than producing locally.
According to him, 1,500 employees of the firm will be retrenched in a process that will span six to nine months, as the company relocates, adding that the retrenchment, which will take place in batches, had already commenced with the first batch of workers being sent home.
After months of complaint about lack of access to foreign exchange for the purchase of raw materials and machinery, high cost of running his factory in Nigeria and the influx of imported

Saudi Aramco CEO predicts oil market balance by early 2017

The global oil market should be balanced early next year, the president of Saudi Aramco said on Tuesday, after over-supply drove prices to multi-year lows in 2016.
“The gap between supply and demand is closing,” Amin Nasser, who is also the state-owned oil company’s chief executive, told an international energy forum.
He said Aramco’s analysis sees the market “balanced by the first half of 2017.”
Last week, the chief of the International Energy Agency said the market would rebalance earlier than expected if major crude producers implement a deal to cap output when they meet next month.
Under current conditions, the IEA expects global output to exceed demand until the second half of 2017, Fatih Birol said in Singapore.
But he said that if OPEC and non-OPEC producers intervene in the markets, “this rebalance can be earlier than the second half of 2017.”

CBN goes tough on e-banking fraud, to blacklist customers

The Central Bank of Nigeria (CBN) has said it is working on a policy that will ensure that bank customers involved in electronic fraud are either blacklisted or placed on close surveillance.
The bank’s Director, Banking and Payment System, Mr. ‘Dipo Fatokun, said this at the October edition of the Nigeria e-Fraud Fraud Forum (NeFF) held in Lagos at the weekend.
Fatokun, who is the chairman of NeFF, said the Bank Verification Number (BVN) would also be used in identifying fraudsters in the industry.
“We are currently working on a framework using the BVN to eliminate fraudsters. One common thing about electronic fraud is that when money is moved from an account, it is moved into another bank account. So, identifying the owner of that fraudulent account using the BVN, we would not only be able to identify him or her in the bank in which he has moved the money to, we would also identify him in all the banks where he has accounts and when legal impediments are overcome, such people could be blacklisted or watchlisted in the banking system.

Senate vows to sustain NLNG’s legacy

The Chairman Senate Committee on Gas, Senator Bassey Albert Akpan, has promised that his committee will do all in its power to sustain the Nigeria Liquefied Natural Gas Limited legacy and encourage the entrenchment of the NLNG business model in other parts of the Nigerian economy.
This was contained in a statement on Tuesday by the company’s General Manager, External Relations, Dr. Kudo Eresia-Eke.
Akpan made the call when he led members of the committee on an oversight visit to the NLNG facility in Bonny on Monday.
Other members of the 11-person Senate team included Senators Bassey Albert Akpan Barnabas Gemade, Rose Oko Okoji, Rilwan Adesoji Akanbi, Danjuma Laah, Francis Alimikhena, Matthew Urhogide and Bubakar Moallahyidi.
They all commended the NLNG model and assured NLNG’s Senior Management of their continued support to promote and sustain the company’s successful operations.
Speaking after a business presentation by the NLNG’s General Manager Production, Tayo Oginni,

Senate approves bill to end business monopolies

The Senate has approved a bill seeking to end all forms of business monopolies in Nigeria and promote trade competition in the 36 states of the federation.
The upper legislative chamber, therefore, approved scrapping of the Consumer Protection Council (CPC) and ratified its replacement with the Federal Competition and Consumer Protection Commission.
Passing the bill sponsored by Senator Andy Uba (PDP, Anambra South), yesterday, through a second reading, the Senate directed its Committee on Trade and Investment to conclude all legislative work on the issue and report back within four weeks.
The Federal Government, meanwhile, is ecstatic that it’s reforms for instituting a vibrant business environment may have started yielding dividends, as Nigeria’s ranking in the World Bank’s Ease of Doing Business remains static, halting a falling trend in the past years.
A statement signed by Laolu Akande, Senior Special Assistant to Vice President Yemi Osinbajo, yesterday, said the latest 2017 report released Tuesday, October 25, and which ranked Nigeria 169

Adeosun opens London Stock Exchange, says Nigeria has low debt-GDP ratio

Nikhil Rathi, Chief Executive Officer, London Stock Exchange (LSE); Chinelo Anohu-Amazu, Director General, National Pension Commission (PENCOM); Greg Hands, UK Minister for International Trade; Kemi Adeosun, Honourable Minister of Finance, Federal Republic of Nigeria; Oscar N. Onyema, OON, Chief Executive Officer, The Nigerian Stock Exchange (NSE); Haruna Jalo-Waziri, Executive Director, Capital Markets Division, NSE at the Opening Bell Ceremony of the London Stock Exchange to kick off the 3rd London and Lagos Capital Markets in Partnership Conference organized by the Nigerian Stock Exchange and London Stock Exchange in London on Friday.

Nigeria’s minister of finance, Kemi Adeosun, on Friday opened the London Stock Exchange (LSEG) to celebrate the business ties between Nigeria and UK, while promoting the 3rd ‘London and Lagos Capital Markets in Partnership’ conference.
The minister, who was joined by Greg Hands, a member of the UK parliament and the UK minister of state for international trade, said Nigeria is good for business.
Adeosun, who explained how Nigeria intends to fund its budget deficit, said Nigeria’s low-interest lending rate remains on course. She said the country has a headroom for borrowing, since it has a low debt-to-GDP ratio.
Speaking on Nigeria, Hands said: “I know from my own time in Nigeria that the UK and Nigeria have long enjoyed a close and prosperous business relationship.
“The UK is one of Nigeria’s largest investors and the government is committed to boosting trade between our two countries.
“We are actively helping British companies export to Nigeria and Nigerian businesses to locate

At N300/dollar, no need for fresh devaluation – Emir Sanusi

The Emir of Kano and former governor of the Central Bank of Nigeria (CBN), Muhammad Sanusi II, has said that the naira, at 300 to a dollar, needs no fresh devaluation.
Sanusi said all the CBN needs to do is to make the Bureau de Change (BDC) segment of the market liquid, and watch the gap between official and parallel market close, with investors bringing in more forex.
“My public position is that if the Central Bank can improve on its management of foreign exchange, provide liquidity to the parallel market, get a convergence between the BDC rate and the official rate, also keep these yields where they are, that will help to attract the foreign exchange that we need to stabilize in the short term,” he told Daily Trust.
“While I think the naira is undervalued, certainly if you look at the purchasing power parity, when you look at the nominal exchange rates, when you look at the rate of inflation, it stands to agree that even at 300, the naira will be slightly undervalued.

CBN sells $313 million in forward auction

The Central Bank of Nigeria (CBN) has sold about 313 million Dollars, in a two-month forward auction to clear a backlog of Dollar demand.
This is the third of such auctions since the launch of the forwards market in June 2016.

German firm declines offer to print new Zimbabwe currency

A German company has refused to print Zimbabwe’s controversial new currency forcing President Robert Mugabe’s government to delay its introduction amid worsening cash shortages.
The Reserve Bank of Zimbabwe (RBZ) announced in May that it will introduce bond notes that will be at par with the United States dollar to address liquidity challenges.
RBZ governor John Mangudya, who initially announced that the notes would be in circulation by October, said a German company had been given the printing contract.
The launch of the ‘surrogate currency’ was moved to next month and on Friday a leading business newspaper in Zimbabwe revealed that the delays were caused by Giesecke and Devrient’s refusal to print the notes.
Giesecke and Devrient printed the Zimbabwe dollar until the country abandoned the currency in 2009 after it was ravaged by 500 billion percent inflation.
The German embassy in Harare confirmed that the company had refused to print the new currency.
“According to the information that we have from the said company, it will not print bond notes for

Wema Bank expends N221m on judiciary archive

Wema Bank Plc has raised support for the Lagos State Government and the Justice Research Institute Limited with N20 million to deliver a world-class archiving service aimed at transforming record management in the Lagos State High Court.
In a bid to address the deteriorating state of the Lagos High Court archives, the Lagos State Judiciary and the Justice Research Institute, a private limited liability company, partnered to create a joint venture, the Lagos Archives and Property Litigation Registry (LAPLR).
Apart from the N20 million funding by Wema Bank, the Bank also granted LAPLR a Project Finance Facility to the tune of N201 million.
The Managing Director of Wema Bank, Segun Oloketuyi, while speaking at the launch of the archives at the Lagos State High Court, noted that the bank identified the need to have a credible source of information on land and property that are subject to litigation in Lagos State, hence the

FG to target other sectors for revenue – FIRS

The Federal Inland Revenue Service (FIRS) has said the current paradigm shift in Nigeria’s economy calls for attention and concerted efforts towards the development of other critical sectors of the economy for the much-needed revenue.
The Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler, who was recently elected President of the African Tax Administration Forum (ATAF) in Pretoria, South Africa in his remarks said without any doubt, the creative industry has opened new frontiers and economic opportunities in terms of wealth creation, knowledge economy, employment generation, local capacity utilisation and revenue generation; with huge potential to leapfrog into emerging high-growth economy.
Fowler, who was represented at the occasion by Mr. Kola Okwola noted, “that the extent to which an economy is able to grow sustainably and develop depends to a large extent, on its ability to generate tax revenue to finance its expenditure and the efficiency of its tax system.

Power sector loses N549bn yearly to gas constraints

Nigeria’s power sector is losing an average of N549 billion yearly to gas supply challenges. The situation has continued to deprive the country of over 2,479 Mega Watts (MW) daily.
According to the Nigerian Electricity Supply Industry (NESI), the sector is losing an estimated N1.525 billion daily due to power generation constraints.
Further analysis showed that losing N1.525 billion daily to lack of gas to power plants, translated to N45.75 billion monthly.
NESI said, in its daily power generation analysis, that the country recorded line constraint of 394.5MW and high-frequency constraints of 303MW as at October 12, 2016. It explained that the revenue losses were calculated using a net, average and levelised tariff of N20/kWh. The agency stressed that in gross terms, this implies average end-user tariffs of circa N32/kWh inclusive of all Aggregate Technical and Commercial losses (ATC&C) and export sales if one adopts the

Dollar scarcity: Banks suspend ATM card usage abroad

Deposit Money Banks have begun suspending their Automated Teller Machine cards (debit and credit) from working overseas as dollar scarcity continues to hit the economy badly.
Stanbic IBTC Bank, Standard Chartered Bank Nigeria and Guaranty Trust Bank on Friday announced the suspension of their overseas ATM card services.
Also suspended by the banks are online transactions priced in foreign currencies. This means that customers of the banks will no longer be able to use their debit or credit cards to make online transactions that are denominated in dollars, euros, pounds sterling and other foreign currencies.
In a note to its customers on Friday entitled: ‘Suspension of international transactions on naira debit cards’, Standard Chartered Bank Nigeria said, “Please be informed that effective immediately, your naira denominated debit cards will no longer be functional for international transactions.
“This is due to the current volatility in the foreign exchange market. Your naira-denominated debit cards can only be used for local transactions at Point of Sale terminals, Automated Teller Machines and online for Nigerian retailers.”
In a text message to its customers on Friday, Stanbic IBTC Bank similarly said, “Dear customer,

GE confirms $2 billion investment in Nigeria

General Electric has confirmed its interest in investing $2 billion on Nigerian railway concession project worth around $2 billion.
President Muhammadu Buhari said in his 1 October anniversary speech that GE would be investing $2.2 billion in a concession to revamp, provide rolling stock, and manage some of the country’s railways.
Given the size and scope of the proposed project, it is likely that the debt and equity commitments required from lenders, consortium partners and other co-developers will be in the range of $2

Gombe govt workers to get home renovation loan

The Gombe State government has perfected plans to begin home renovation loans to its civil servants.
To this end, the Head of Gombe civil service Dr. Deniel Mohammed Musa, said the state government has signed a Memorandum of Understanding (MoU) with the Federal Mortgage Bank of Nigeria (FMBN) to provide a platform for home renovation loan scheme.
While speaking in Gombe in his office recently, Musa explained that the MoU will create an avenue for civil servant to access a new package brought to them by the bank.