SABINEWS – THE NIGERIAN ECONOMY TODAY

SABINEWS – THE NIGERIAN ECONOMY TODAY

Sabinews Daily Update on the Nigerian Economy for July 28, 2014

 NSE to Sanction Companies over Delayed Dividend Payments

The Nigerian Stock Exchange (NSE) is to fine companies that fail to pay    dividends after due dates, as part of efforts to protect investors and make the market more attractive.

Specifically, any company that fails to pay dividend on due date shall attract a fine of five per cent of the total dividend amount declared.
Similarly, failure by the company to issue bonus shares within three months after approval by shareholders at an annual general meeting (AGM) shall attract a fine of  five per cent of the nominal value of the shares. Read more.sabi-economy

The strategic blunders of CBN’s Monetary Policy Committee

The Federation Accounts Allocation Committee last week approved the sum of over N755bn for sharing among the three tiers of government. Ordinarily, the distribution of this relatively sizable revenue would elicit hope that the economy will become positively impacted, as the various tiers of government would be funded to achieve their budget expectations.

In reality, however, Nigerians may not understand why the disbursement of this allocation would bring in its train, a host of adverse consequences to our economic and social welfare. Indeed, the economic dislocation attributable to such allocations begins with the deposit of the allocated sum of N755bn into the bank accounts of the federal, states and local government including, ministries, departments and other agencies. Read more.

IMF: Nigeria, Others Still Adjusting to Tight Financial Conditions

Nigeria and a lot of other developing economies as well as emerging markets are still adjusting to tighter financial conditions and implied higher cost of capital since last year, the International Monetary Fund (IMF) has stated.

The multilateral institution which stated this in its latest World Economic Outlook (WEO) for July 2014, obtained at the weekend, also noted that the challenge of weaker medium-term growth trajectories was also confronting economies under the above-mentioned categories. Read more

 “Missing” oil revenue: Between Sanusi and the Senate

When the former Governor of Central Bank of Nigeria(CBN) and now Emir of Kano, Sanusi Lamido Sanusi, initially disclosed that  $49.8b was not remitted to the federation Account by the Nigerian National Petroleum Company (NNPC), many Nigerians, so used to the corruption of top government officials in times past and present, were aghast and lent their voice to the debate for and against the bogus claim. But, today, courtesy of the Senate of the Federal Republic, we now know that the man who headed our  Apex bank was far from the truth.

A fearful Sanusi, whose neck was on the line for the way he managed the resources of the CBN, had cleverly put the president’s back to the wall when he wrote to Goodluck Jonathan on the non-remittance to the Federation Account by the Nigerian National Petroleum Corporation (NNPC) of $49.8billion, representing 76 per cent of the value of crude oil lifting from January 2012 to July 2013. Read more.

How environmental interests are being served in the Niger-Delta region – Adedeji

Energy in general and that sourced from Hydrocarbon Fuels (Petrol, Diesel, Kerosene, Liquefied Natural Gas, various Oils & Greases utilized as Lubricants, etc.) in particular have become increasingly important over the last 100 years for sustaining Transportation Networks, Industrial Development, keeping people warm in Temperate Climates (Northern Hemisphere Countries), driving Military Hardware on the Land, Sea, and in the Air, etc.

Despite all the “hype” about the discovery of SHALE OIL from Rocks by some of the major Buyers of Crude Oil and the threat, which this poses to Members of the OPEC Cartel, i.e. the Organization of Petroleum Exporting Countries, including Nigeria, those ‘in – the – KNOW’ have said “no SHAKIN”, (‘Ba Damu’ in the Hausa Language spoken widely in Northern Nigeria) . . . because of the very high cost of extracting Shale Oil as well as the near astronomical environmental costs associated with it, unless and until the process is further perfected!  Read more

 IMF: Nigeria, Others Still Adjusting to Tight Financial Conditions

Nigeria and a lot of other developing economies as well as emerging markets are still adjusting to tighter financial conditions and implied higher cost of capital since last year, the International Monetary Fund (IMF) has stated.

The multilateral institution which stated this in its latest World Economic Outlook (WEO) for July 2014, obtained at the weekend, also noted that the challenge of weaker medium-term growth trajectories was also confronting economies under the above-mentioned categories. Read more.

Banks credit to economy rose to N15.34tr in first quarter –CBN

Central Bank of Nigeria (CBN) said at the weekend that banks’ credit to the domestic economy rose by N308.59 billion or 2.05 per cent to N15.349 trillion in the first quarter of 2014.

According to the CBN’s quarterly statistical bulletin for March 2014, the expansion was attributable to the N273.92 billion or 1.66 per cent rise in credit to private sector, and N34.67 billion or 2.36 per cent in net credit to government. Net domestic credit for the period was however 28.52 per cent, less than the target of 30.57 per cent set for fiscal 2014, but 20.47 per cent higher than previous year’s level. Read more.

Nigeria’s GDP to hit $1.6 trillion by 2030, says report

SHOULD Nigeria reach its full potential, its yearly Gross Domestic Product (GDP) could exceed $1.6 trillion in 2030 and the country could be a top-20 economy, a report has stated.

According to a report by Mckinsey Global Institute, for Nigeria to reach its full potential, the country would need majorly, right reforms and investments, stressing that this will enable the country live up its economic potential and bring more of its populace out of poverty. Read more.

 

Seplat targets 100,000bpd in three years

WorldStage Newsonline– Seplat Nigeria Limited, an indigenous oil exploration and production firm has projected a 100,000 barrels of crude oil per day production from three Oil Mining Licences (OMLs) acquired from Shell Petroleum Development Company (SPDC) within the next three years from the current62,000bpd.

The company which is quoted on the Nigerian Stock Exchange  has raised output from 14,000bpd it inherited in 2010 to 62,000bpd from OMLs 4, 38 and 41.

Mr Godwin Obiuwevbi, the company’s Head, Community Affairs, who disclosed this when the company played host to Delta State Government official and a delegation from the British High Commission at the weekend in Sapele, Delta State said, “From four producing communities in 2010, we have increased to 10 and by 2017, we hope to reach 100,000pbd. This year we should get to 72,000 from there we will take it to 85,000 and in the next two, three years we will get 100,000bpd.” Read more.

Subsidiaries of NNPC Now Profit-Oriented, Efficiency-Driven, Says Yakubu

The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mr. Andrew Yakubu, has said that most of the corporation’s Strategic Business Units (SBUs) are now better managed than they were in the past.
Yakubu stated that following an overall business rejuvenation plan which the corporation initiated to reposition it to be a commercially-focused and profit-oriented organisation in anticipation of a level-playing field that will come from the passage of the Petroleum Industry Bill (PIB), the NNPC has now begun to get positive business results from its SBUs.

He said this during a town hall meeting at the Port Harcourt Refining Company (PHRC), Port Harcourt, Rivers State, stressing that most of the SBUs have now transited from being cost centres to profit-making centres. Read more.

Navy Arrests Two Vessels, 25 Persons for Oil Theft

Twenty-five persons and two ocean-going vessels involved in illegal bunkering activities have been arrested by the men of the Nigerian Navy, along the waterways of the Niger Delta in Brass Local Government Area, Bayelsa State.

The two seized vessels identified as MV Hanan, which has nine crew member and MV Alezza Lilah with 14 Nigerians, a Ghanaian and a Camerounian, were arrested with over 300,000 metric tonnes of stolen and illegally refined Automotive Gas Oil (Diesel) on board the vessels. Read more.

Environment Minister orders SPDC to resolve Bonga spill crisis

Minister of Environment, Mrs. Laurentia Laraba Mallam has ordered Shell Petroleum Development Corporation (SPDC) to quickly resolve the protracted crisis over the Bonga Oil Spillage in the Niger Delta region.

A statement by the Ministry’s Deputy Director, Press, Ben Bem Goong at the weekend in Abuja said Mallam gave the directive during a meeting with officials of SPDC led by its country Chairman, Mutiu Sunmonu. Read more.

‘JTF winning war against oil theft, illegal refining’

The Commander, Joint Military Task Force in the Niger Delta, Operation Pulo Shield, Maj. Gen. Emmanuel Atewe, says the outfit, despite the resilience of oil criminals, is winning the war against oil theft, illegal refining and related crimes.

Atewe said this on Saturday when the Nigerian Army Officers’ Wives Association, led by its National President, Mrs. Felly Minimah, paid a courtesy visit to the headquarters of the JTF in Yenagoa, Bayelsa State. Read more.

Vandalism: Refineries get crude oil through marine vessels

Nigerian refineries currently get crude oil supply through marine vessels as opposed to the use of pipelines, the Nigerian National Petroleum Corporation has revealed.

According to the corporation, the refineries had to change tactics as a result of the incessant attacks on crude oil and gas pipelines by vandals. Read more.

Globetrade to train practitioners on oil, gas

DETERMINED to deepen  knowledge of operators in the nation’s oil and gas insurance, Globetrade Insurance Brokers Limited has moved in to train  practitioners in the specialized  energy insurance.

It was against this backdrop that Glodetrade Insurance Brokers is partnering a London based Alwen Hough Johnson, a firm registered at the Lloyds to drill insurance managers in oil and gas insurance. Read more.

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