Sabinews Daily Update on the Nigerian Economy for July 31, 2014
CBN TO WITHDRAW BDCs’ LICENCES AS DEADLINE ELAPSES
As the deadline fixed for Bureau De Change (BDC) operators to comply with the new capital requirements ends today, defaulting firms will have their operating licences revoked by the Central Bank of Nigeria (CBN), THISDAY learnt yesterday.
However, a reliable source at the central bank who spoke to THISDAY on condition of anonymity disclosed that a lot of the BDC operators have complied. He however, declined to disclose the number of firms that have met the new capital requirements for the sub-sector.
“I can confirm to you that many of the BDCs have applied and for those that have not met the deadline, the guideline is clear about what they should expect,” the source explained.
In order to ensure that BDC comply with the new capital requirements, the central bank had extended the deadline to July 31, 2014, from an earlier deadline of July 15 2014. Read more
HOW FIRMS HELP BOOST EDUCATION SECTOR IN NIGERIA
NIGERIA’S education system has been on the decline. According to a recent World Bank study; “employers complain that the quality of university graduates and secondary school graduates, especially their communication skills, has been falling continually for two decades”.
However, it was clearly indicated in the study that improvement in communication skills, use of computers and information technology by graduates will help increase their productivity.
Different tiers of government have been investing funds in the education sector to ensure that this critical segment of the society is put on a proper pedestal to contribute to national development. However, allocation to the education sector, whether at the federal or state level, falls far below the United Nations Educational, Scientific and Cultural Organization UNESCO’s recommended six per cent of GDP, a threshold which the world body stated must be crossed for the sector to be revived and possibly developed to meet current needs. Read more
SACOIL IN TALKS TO BUY FIRST PRODUCING WELL IN NIGERIA
SACOIL Holdings is in talks to buy what could be the Johannesburg-based oil and gas company’s first production asset, according to chairman Tito Mboweni.
Mboweni said on Tuesday that SacOil had “the possibility of an OML”, or oil mining lease, for a project that was in production phase in Nigeria, Africa’s top crude producer. He declined to provide more detail on the stage of negotiations or the location of the asset.
JSE- and AIM-listed SacOil has operational blocks in Malawi, Botswana and the Democratic Republic of Congo. Its shares have more than doubled over the past 12 months on the JSE.
Mboweni said Royal Dutch Shell’s sale of operations in Nigeria “is good for us” and the company was “sniffing around” for prospects in Namibia and elsewhere on the continent. Read more
IRANIAN INVESTORS EYE NITEL, BRIDGE BANKS
Iranian investors under the Iran-Nigeria Investment Corporation and led by Kouros Capital Group (KCG) have expressed interest in Nigerian Telecommunications Limited (NITEL) company and the bridge banks whose privatisation has lingered.
The investors are expected to bring into the country multi-billion dollar investments in diverse areas as telecommunications, agriculture, banking, oil and gas, and aviation, the Nigerian Thisday online newspaper reported on July 31.
This was disclosed by the chairman of Kouros Capital Group, a member of the Iran-Nigeria Investment Corporation, Kouros Jahangiripoor and its Executive Director Arch. Amir H. Amiri.
The KCG management team has expressed strong support for closer Iran-Nigeria industry cooperation and development of more trade between the two countries. Read more
Nigeria Loses N342 Million Daily As Eni Shuts Down Pipeline
Nigeria will be losing about N342.4 million ($2.14 million) daily, as Italian oil firm, Eni, yesterday, shut down its 20,000 barrels per day crude oil pipeline in Nigeria.
The shut down, according to the company, is due to sabotage on the pipeline, which had led to the interruption of 4,000 barrels a day it gets from its 20 per cent share in Nigerian Agip Oil Company.
Wall Street Journal reported that Eni’s disclosure confirmed information from a local activist, who stated that pipeline had been blown up late Sunday. Read more
BARCLAYS AFRICA TO EXPAND IN NIGERIA
BARCLAYS Africa wants to expand its corporate investment banking business in Nigeria into a fully fledged business by 2016.
The corporate investment banking division in South Africa is the bank’s best-performing division, growing earnings 24% in the six months ended June. But Barclays Africa was unlikely to buy any banks in Africa’s largest economy as they were expensive, CEO Maria Ramos said on Wednesday. http://www.bdlive.co.za/business/financial/2014/07/31/barclays-africa-to-expand-in-nigeria