₦airaland Forum

By Modupe Gbadeyanka

Mid-level financial institution in Nigeria, Fidelity Bank Plc, has announced a downward review of interest rates on all its savings products to depositors.

The lender, in an emailed notice to its customers, which was seen by Business Post, explained that its action followed the recent downward review of the Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN).

The bank further stated that the new rates became effective on Thursday, May 28, 2020.

Last month, the banking sector regulator announced the downward review of the benchmark interest rate to 12.50 percent after its Monetary Policy Committee (MPC) meeting held in Abuja.

“Following the downward review of the Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN), our bank has revised the interest rates on all its savings products including the High Yield Savings Account (HYSA).

“Please see below new rates effective Thursday, May 28, 2020,” the message from Fidelity Bank on Wednesday, June 24, 2020, stated.

According to the lender, the new interest rate on its Fidelity Savings Account is now 3.75 percent instead of the former 4.05 percent. The Fidelity Flex Account now has an interest rate of 3.75 percent as against the previous 4.05 percent, while the Easi Save Account now has an interest rate of 3.75 percent versus the old rate of 4.05 percent.

Furthermore, the SWEETA Account, which used to have an interest rate of 2.835percent, has been dropped to 2.625 percent (it also offers N150,000 school fees support as a loyalty cash reward to customers every quarter).

The FPSS Account, which used to have an interest rate of 2.835 percent, has been cut to 2.625 percent (it also offers N500,000 extra income as a loyalty cash reward to customers every quarter.

In the notice, Fidelity Bank said on its HYSA, the new interest rate for deposits below N100,000 is 3.75 percent versus the previous 4.05 percent, while for N100,000 to N999,999, the new rate is 4.15 percent instead of the old rate of 4.45 percent.

In addition, under the HYSA, savings of N1 million to N4.999 million now attracts 4.65 percent in contrast to the prior rate of 4.95 percent, while for N5 million and above attracts 5.15 percent versus the previous 5.45 percent.

https://businesspost.ng/banking/fidelity-bank-reduces-savings-interest-rates/

Eyebrows Raised as Key Investor in UAC Nigeria Sells 40 million Stocks
https://businesspost.ng/economy/eyebrows-raised-as-key-investor-in-uac-nigeria-sells-40-million-stocks/

Ellah Lakes Generates Zero Revenue in 9 months, Posts N25m Operating Loss
https://businesspost.ng/economy/ellah-lakes-generates-zero-revenue-in-9-months-posts-n25m-operating-loss/

Remarks on US-China Trade Deal Status Disrupt Oil Prices
https://businesspost.ng/economy/remarks-on-us-china-trade-deal-status-disrupt-oil-prices/

Transactions at NSE Worsen as 23 Stocks Close in Red
https://businesspost.ng/economy/transactions-at-nse-worsen-as-23-stocks-close-in-red/

Nigeria’s Crude Qua Iboe to Load 6 Cargoes in August
https://businesspost.ng/economy/nigerias-crude-qua-iboe-to-load-6-cargoes-in-august/

NASD Generates N139m as Transaction Fees in 2019
https://businesspost.ng/economy/nasd-generates-n139m-as-transaction-fees-in-2019/

NSE Transforms X-Data Portal With Additional Features
https://businesspost.ng/economy/nse-transforms-x-data-portal-with-additional-features/

Nigerian Stocks Grossly Undervalued at Current Prices—Olubiyi
https://businesspost.ng/economy/nigerian-stocks-grossly-undervalued-at-current-prices-olubiyi/

Loan Default: China Won’t Take Possession of Projects in Nigeria—DMO
https://businesspost.ng/economy/loan-default-china-wont-take-possession-of-projects-in-nigeria-dmo/

47 Stocks Crash NSE by 0.99% as Neimeth Sheds 40.08% Last Week
https://businesspost.ng/economy/47-stocks-crash-nse-by-0-99-as-neimeth-sheds-40-08-last-week/

Access Bank Shares Fall as Wigwe Buys 6.8 million Units for N46m
https://businesspost.ng/banking/access-bank-shares-fall-as-wigwe-buys-6-8-million-units-for-n46m/

Transfer of Oil Blocks Won’t Weaken Shareholder Value—Seplat Assures
https://businesspost.ng/economy/transfer-of-oil-blocks-wont-weaken-shareholder-value-seplat-assures/

Dangote Cement Stocks Depreciate on News of Mass Sack
https://businesspost.ng/economy/dangote-cement-stocks-depreciate-on-news-of-mass-sack/

Concerns as Nigeria Records 20,244 Coronavirus Cases
https://businesspost.ng/health/concerns-as-nigeria-records-20244-coronavirus-cases/

Omoluabi Mortgage Bank Awaits CBN Approval of Adekunle as MD
https://businesspost.ng/jobs/omoluabi-mortgage-bank-awaits-cbn-approval-of-adekunle-as-md/

Local Savings Can Help Reflate Economy—Finance Minister
https://businesspost.ng/economy/local-savings-can-help-reflate-economy-finance-minister/

How Nigerian Capital Market Can Combat COVID-19
https://businesspost.ng/featureoped/how-nigerian-capital-market-can-combat-covid-19/

By Modupe Gbadeyanka

A chieftain of the ruling All Progressives Congress (APC), Mr Eze Chukwuemeka Eze, has asked critics to leave Minister of Transport, Mr Rotimi Amaechi, and the Rivers State chapter of the political party out of the crisis facing the suspended national chairman of the party, Mr Adams Oshiomhole.

In a statement, the erstwhile National Publicity Secretary of the defunct New Peoples Democratic Party (nPDP) described the crisis facing the former Governor of Edo State as “self-inflicting woes,” stressing that Mr Amaechi should not be dragged into it.

He expressed satisfaction over the court’s validation and elongation of Mr Victor Giadom’s stay in office as acting national chairman of the APC.

The party chieftain felicitated with Mr Giadom, describing the court’s action as a step in the right direction for the service of justice and a fantastic alternative to addressing the avalanche of crisis rocking the party across the country.

He said the court’s action has laid to rest all speculations and uncertainties about the leadership of the party and the legitimate occupant of the party’s national chair, which has been in unnecessary contention since the exit of Mr Oshiomhole.

While calling Mr Hillard Eta and few members of the National Working Committee (NWC) of the party to respect court pronouncements and orders, Mr Eze cautioned Mr Lanre Issa-Onilu, an appointee of Mr Oshiomhole that any further statement not approved by Mr Giadom will be an affront to constituted authority and will no longer be tolerated with kid’s glove anymore.

He averred that the rush by Mr Oshiomhole and others to visit several courts scouting for court judgement in order to overturn the judgement given to Mr Giadom will end in futility.

The politician pleaded with Mr Eta and others to support Mr Giadom to enable him reposition the party on the path of true progress, stressing that the APC is a party built on justice and rule of law.

“The problem with those that have been promoting crisis in APC through erstwhile national chairman of APC, Comrade Adams Oshiomhole, is their ignorance of whom Victor Giadom is, thereby attributing what he is doing to Amaechi.

“Chief Giadom is a full-fledged man who knows his onus so far political intricacies are concerned. Though he is a principal in Amaechi’s political college, he has distinguished himself as a political Iroko capable of handling his own political destiny on his own,” he said.

Accordingly, the party stalwart cautioned Mr Joe Igbokwe, Mr Oshiomhole and those they represent to leave the Minister out of the current situation in the APC, stressing that Mr Amaechi is very preoccupied and busy with national assignments and delivering on every mandate touching on his office with visible results across the country.

He said those who have taken time out to understudy Mr Giadom are aware that he is the unsung political bulldozer from Rivers State capable of crushing all the undemocratic elements trying to destabilize the APC and appealed to all and sundry to respect and support him to salvage the party from the mess that Mr Oshiomhole and those pushing him have put the party into.

The party chief counselled his brother-in-law, the Governor of Imo State, Mr Hope Uzodinma, to distance himself from any act in the Edo APC crisis capable of rubbing dirt on his image and urged him to channel his support to Mr Giadom to recover all the losses of the party.

Mr Eze thanked God for reviving his good friend, Mr Abiola Ajimobi and pleaded with those prompting him into political eclipse to leave him out of APC imbroglio oiled by the former Governor of Edo State and his cohorts so that he can properly recuperate.

He called on party faithful and Nigerians in general to remember Mr Ajimobi in prayers for his quick recovery.

The party chief maintained that Mr Giadom has come to stay, stressing that those scheming for his removal should stop wasting their time and invest same on meaningful ventures.

https://businesspost.ng/general/amaechi-rivers-apc-not-behind-oshiomholes-woes-eze/

NSE Demonstrates Remarkable Resilience Despite Volatility
https://businesspost.ng/economy/nse-demonstrates-remarkable-resilience-despite-volatility/

NASD Exchange Closes Flat on Week’s Last Trading Day
https://businesspost.ng/economy/nasd-exchange-closes-flat-on-weeks-last-trading-day/

COVID-19: Consumer Goods Sector Hardest Hit—FBNQuest Survey
**Says Income Levels Down 30%
https://businesspost.ng/general/covid-19-consumer-goods-sector-hardest-hit-fbnquest-survey/

UBN Property to Pay 5 Kobo Dividend Despite 39% Slump in Profit
https://businesspost.ng/economy/ubn-property-offers-5-kobo-dividend-as-profit-drops-39/

Seplat Transfers Three Oil Assets to Subsidiary
https://businesspost.ng/economy/seplat-transfers-three-oil-assets-to-subsidiary/

Output Cut: Nigeria Gets Monday Deadline for Compensation Plan
https://businesspost.ng/economy/output-cut-nigeria-gets-monday-deadline-for-compensation-plan/

Ghana Posts 4.9% GDP Growth in Q1
https://businesspost.ng/economy/ghana-posts-4-9-gdp-growth-in-q1/

By Dipo Olowookere

Foreign Portfolio Investors (FPIs) and others who were eligible to buy treasury bills offered for sale at the Open Market Operations (OMO) in Nigeria purchased them at a higher rate than what their local counterparts bought at the primary market auction of the previous day.

On Wednesday, the Central Bank of Nigeria (CBN) conducted a PMA, which was mainly for domestic investors and the T-bills were sold to them for as low as 1.80 percent and as high as 3.75 percent.

The midweek exercise recorded a subscription level of 610 percent as the apex bank received N89.0 billion for the N14.6 billion worth of treasury bills it offered to sell.

Stop rate for the 91-day bill was dropped by the CBN to 1.80 percent from 2.00 percent, rate for the 182-day bill was cut to 2.04 percent from 2.20 percent, while rate for the 364-day was pruned to 3.75 percent from 4.02 percent.

But yesterday, when the banking watchdog floated an OMO sale and rates were still at their previous levels, with appetite for the investment tool remaining high.

Details of the OMO auction analysed by Business Post showed that the central bank approached the market with N80.0 billion of the liquidity management tool and it received bids valued at N167.6 billion, indicating a subscription level of 210 percent.

A breakdown of the exercise showed that N10 billion worth of 89-day bill was offered for sale, another N10 billion of 180-day bill was auctioned and N60 billion worth of 348-day bill was offered for sale.

But when the bids were analysed, investors staked N20.04 billion on the three-month instrument, N24.00 billion on the six-month bill and N123.54 billion on the one-year tenor.

However, the central bank allotted what it initially offered for sale, with the stop rate of the 89-day bill clearing at 4.95 percent, the 180-day bill at 7.79 percent and the 348-day bill at 8.99 percent.

Meanwhile, the average money market rates depreciated by 5.30 percent on Thursday to 3.25 percent from 8.55 percent. This followed the 5.37 percent decline in the Open Buy Back (OBB) rate and the 5.22 percent fall in the Overnight (OVN) rate.

At the close of transactions yesterday, the OBB rate went down to 2.80 percent from 8.17 percent, while the OVN rate dipped to 3.70 percent from 8.92 percent.

It was observed that the decline in rates came on the back of improved liquidity in the financial space as a result of inflows from maturing OMO bills on Thursday.

https://businesspost.ng/economy/cbn-sells-omo-bills-to-foreign-investors-at-8-99/

CBN Sells OMO Bills to Foreign Investors at 8.99%
https://businesspost.ng/economy/cbn-sells-omo-bills-to-foreign-investors-at-8-99/

Nigerian Stock Exchange Value Drops 0.16% Thursday
https://businesspost.ng/economy/nigerian-stock-exchange-value-drops-0-16-thursday/

Naira Gains Amid 315% Rise in Forex Demand at I&E Thursday
https://businesspost.ng/economy/naira-gains-amid-315-rise-in-forex-demand-at-ie-thursday/

Unlisted Securities Market Posts 0.70% Gain Thursday
https://businesspost.ng/economy/unlisted-securities-market-posts-0-70-gain-thursday/

Oil Gains 2% as Nigeria, Other Work Toward Cut Compliance
https://businesspost.ng/economy/oil-gains-2-as-nigeria-other-work-toward-cut-compliance/

CBN Sells OMO Bills to Foreign Investors at 8.99%
https://businesspost.ng/economy/cbn-sells-omo-bills-to-foreign-investors-at-8-99/

Nigeria Sells Treasury Bills to Investors at 1.80%
https://businesspost.ng/economy/nigeria-sells-treasury-bills-to-investors-at-1-80/

Pressure Mounts on Naira, Sells at N452/$1
https://businesspost.ng/economy/pressure-mounts-on-naira-sells-at-n452-1/

Rise in Inventories, Weak OPEC Demand Forecast Depress Oil Prices
https://businesspost.ng/economy/rise-in-inventories-weak-opec-demand-forecast-depress-oil-prices/

NASD OTC Exchange Sheds 0.72% Wednesday
https://businesspost.ng/economy/nasd-otc-exchange-sheds-0-72-wednesday/

Nestle, Flour Mills, Others Lift Market by 0.17%
https://businesspost.ng/economy/nestle-flour-mills-others-lift-market-by-0-17/

By Dipo Olowookere

Treasury bills were sold to investors at the primary market auction (PMA) in Nigeria on Wednesday, June 17, 2020 for as low as 1.80 percent.

The rate was for the three-month tenor, which was offered to subscriber at the previous exercise held a week ago at 2.00 percent.

The Central Bank of Nigeria (CBN), which conducts the sale of the debt instrument on behalf of the Nigerian government, has continued to slice the interest rates of the T-bills, owing to the huge interest of investors.

The appetite for treasury bills in the country is high because of its risk-free nature. Instead of keeping money in the banks, where funds deposited are subjected to different charges by financial institutions, investors put their money in treasury bills and other risk-free investment tools like bonds, where they get steady income.

Yesterday, the apex bank went to the market with N14.6 billion worth of the T-bills, but the subscription level went as high as 610 percent as the total bids for the exercise stood at N89 billion. Much of this was for the one-year tenor.

An analysis of the exercise by Business Post revealed that the CBN offered for sale N2 billion of the 91-day bill, another N2 billion of the 182-day instrument and N10.6 billion of the 364-day bill.

When the subscriptions were viewed, investors staked N13.6 billion on the short-dated maturity, N15.2 billion on the mid-dated tenor and N60.2 billion on the long-dated maturity.

However, the central bank allotted to subscribers what it initially offered to sell to them; N2 billion for the 91-day bill, N2 billion for the 182-day bill and N10.6 billion for the 364-day bill.

And for the stop rates, the three-month instrument cleared at 1.80 percent in contrast to the previous 2.00 percent, the six-month tenor cleared at 2.04 percent versus the previous 2.20 percent, while the 12-month maturity cleared at 3.75 percent compared with the previous 4.02 percent.

It is projected that if the demand for the debt instrument continues, the apex bank will further be tempted to cut the rates at the next PMA.

https://businesspost.ng/economy/nigeria-sells-treasury-bills-to-investors-at-1-80/

Nigeria Sells Treasury Bills to Investors at 1.80%
https://businesspost.ng/economy/nigeria-sells-treasury-bills-to-investors-at-1-80/

Obu-Okpella Mines Belongs to us—Dangote Insists
https://businesspost.ng/economy/obu-okpella-mines-belongs-to-us-dangote-insists/

Nigeria to Auction N150bn FGN Bonds Wednesday
https://businesspost.ng/economy/nigeria-to-auction-n150bn-fgn-bonds-wednesday/

Neimeth Gives Shareholders 45.20% Weekly Gain
https://businesspost.ng/economy/neimeth-gives-shareholders-45-20-weekly-gain/

NSE Lists Dangote Cement N100bn 5-Year Bond
https://businesspost.ng/economy/nse-lists-dangote-cement-n100bn-5-year-bond/

AIICO Seeks NSE Approval for N3.5bn Rights Issue
https://businesspost.ng/economy/aiico-seeks-nse-approval-for-n3-5bn-rights-issue/

Resurgence of Coronavirus Cases to Affect Oil This Week
https://businesspost.ng/economy/resurgence-of-coronavirus-cases-to-affect-oil-this-week/

Investors Lose N7.3bn at NASD OTC Market
https://businesspost.ng/economy/investors-lose-n7-3bn-at-nasd-otc-market/

Dangote Cement Exports Clinker to African Markets
https://businesspost.ng/economy/dangote-cement-exports-clinker-to-african-markets/

Newrest ASL Nigeria Joins NASD Exchange After NSE Exit
https://businesspost.ng/economy/newrest-asl-nigeria-joins-nasd-exchange-after-nse-exit/

FrieslandCampina Rakes N12.4bn Profit in FY 2019, Offers N6.81 Dividend
https://businesspost.ng/economy/frieslandcampina-rakes-n12-4bn-profit-in-fy-2019-offers-n6-81-dividend/

NNPC to Halt Crude Sales Discount from July
https://businesspost.ng/economy/nnpc-to-halt-crude-sales-discount-from-july/

Honeywell, 7 Others Get Tax Holiday
https://businesspost.ng/economy/honeywell-7-others-get-tax-holiday/

NSE Backs Social Bonds Issuance for New, Existing Projects
https://businesspost.ng/economy/nse-backs-social-bonds-issuance-for-new-existing-projects/

GSK Grows Post-Tax Profit Amid Flat Topline in Q1’20
https://businesspost.ng/health/gsk-grows-post-tax-profit-amid-flat-topline-in-q120/

Senate Okays Yuguda as SEC DG, Wants Enabling Climate for Investors
https://businesspost.ng/jobs/senate-okays-yuguda-as-sec-dg-wants-enabling-climate-for-investors/

CBN Slices Treasury Bills Rate to 2%
https://businesspost.ng/economy/cbn-slices-treasury-bills-rate-to-2/

Guinness Nigeria Mulls Commercial Paper Sale to Refinance Debts
https://businesspost.ng/economy/guinness-nigeria-mulls-commercial-paper-sale-to-refinance-debts/

Egina Oilfield to Bear 40% of Nigeria’s Crude Output Cut
https://businesspost.ng/economy/egina-oilfield-to-bear-40-of-nigerias-crude-output-cut/

FMDQ Exchange Admits Dangote Cement N100bn CP Notes
https://businesspost.ng/economy/fmdq-exchange-admits-dangote-cement-n100bn-cp-notes/

By Dipo Olowookere

The management of MTN Nigeria Communications Plc has announced raising up to N100 billion from the sale of commercial papers.

Funds from the exercise, according to an earlier notice to the investing community, would be used for working capital as well as for general corporate purposes.

In the notice last month, the telco had said it was raising about N50 billion in two tranches under its N100 billion commercial paper issuance programme already approved by the FMDQ Securities Exchange.

MTN Nigeria, while updating the market of the debt programme on Tuesday, said it has sold the commercial papers to investors, who oversubscribed it by about 400 percent.

According to the statement signed by the company secretary, Uto Ukpanah, the interest showed to the exercise by investors forced the management to increase the amount raised from the sale by 100 percent to N100 billion from the initial N50 billion.

“We initially set out to issue up to N50 billion under the N100 billion CP programme, but at the conclusion of the book build, the CP issuance was about 400 percent subscribed.

“Given the significantly over-subscribed book, MTN Nigeria opted to issue up to the N100 billion limit of the registered CP programme, with active participation from a diverse orbit of eligible individual and institutional investors, which include pension fund administrators, asset managers, corporates and other financial institutions,” Ukpanah said in the statement.

Business Post gathered that for the series I note with 180-day tenor, MTN Nigeria raised N20 billion at an effective yield of 4.90 percent, while for the series II with 270-day maturity, it raised N80 billion, clearing at an effective yield of 5.95 percent.

Ukpanah said further in the notice that the level of interest in MTN Nigeria's debut in the Nigerian debt market (as measured by the volume and value of bids) is a strong reflection of investor confidence in MTN Nigeria's ability to continue to deliver on its strategic objectives and maintain market leadership, as well as the strong credit profile that supports the company's ability to meet its debt service obligations.

Quoting the CEO of MTN Nigeria, Mr Ferdinand Moolman, on the exercise, the statement said, “The N100 billion issued is the largest commercial paper issuance by a Nigerian corporate.

“It allows us to broaden our sources of funding and combines our established lines of credit with access to capital market funding, which will lower our overall cost of borrowing.”

https://businesspost.ng/economy/mtn-sells-n100bn-commercial-papers-at-5-95-yield/

MTN Sells N100bn Commercial Papers at 5.95% Yield
https://businesspost.ng/economy/mtn-sells-n100bn-commercial-papers-at-5-95-yield/

Brent Hits $41 Amidst Fresh COVID-19 Concerns
https://businesspost.ng/economy/brent-hits-41-amidst-fresh-covid-19-concerns/

Black Market Operators Sell Dollar at N448
https://businesspost.ng/economy/black-market-operators-sell-dollar-at-n448/

Stocks Gain N44bn as Mutual Benefits, FCMB Attract Investors
https://businesspost.ng/economy/stocks-gain-n44bn-as-mutual-benefits-fcmb-attract-investors/

CBN to Auction N90.9bn Treasury Bills Today
https://businesspost.ng/economy/cbn-to-auction-n90-9bn-treasury-bills-today/

African Air Travel Business Records Worst Month in April
https://businesspost.ng/travel/african-air-travel-business-records-worst-month-in-april/

CBN to Auction N90.9bn Treasury Bills Today
https://businesspost.ng/economy/cbn-to-auction-n90-9bn-treasury-bills-today/

Guinness Nigeria to Maintain Strong Market Position Amid Cost Pressures
https://businesspost.ng/economy/guinness-nigeria-to-maintain-strong-market-position-amid-cost-pressures/

Fidelity Bank Chairman Sells 2.6m Stocks, MD Buys 2.7m Units
https://businesspost.ng/banking/fidelity-bank-chairman-sells-2-6m-stocks-md-buys-2-7m-units/

Foluke Abdurazaq to Assist Elumelu at Transcorp
https://businesspost.ng/jobs/foluke-abdurazaq-to-assist-elumelu-at-transcorp/

Ghana Plans Policies to Reduce MTN Dominance
https://businesspost.ng/technology/ghana-plans-policies-to-reduce-mtn-dominance/

Seplat Able to Withstand Low Oil Prices
https://businesspost.ng/economy/seplat-able-to-withstand-low-oil-prices/

NDEP Posts 16% Increase in Revenue, to Pay N17 Dividend
https://businesspost.ng/economy/ndep-posts-16-increase-in-revenue-to-pay-n17-dividend/

RMB Nigeria Stockbrokers Joins NASD OTC Market
https://businesspost.ng/economy/rmb-nigeria-stockbrokers-joins-nasd-otc-market/

FBN Insurance Sold for Greater Value to Shareholders—FBN Holdings
**Says Sale Won’t Affect FBN Insurance Brokers Limited
https://businesspost.ng/economy/fbn-insurance-sold-for-greater-value-to-shareholders-fbn-holdings/

2020 Budget: FG Too Hasty Slashing Oil Benchmark to $25—Udemezue
https://businesspost.ng/economy/2020-budget-fg-too-hasty-slashing-oil-benchmark-to-25-udemezue/

Reps Recommend Immediate Scrapping of Excess Crude Account
https://businesspost.ng/economy/reps-demand-immediate-scrapping-of-excess-crude-account/

By Dipo Olowookere

An economic expert, Mr Orji Udemezue, has faulted the second reduction of the crude oil benchmark for the 2020 budget by the federal government.

In May 2020, the central government slashed the threshold to $25 per barrel from the $30 per barrel it was first reduced to in March 2020 from the initial $57 per barrel when the budget was signed into law by President Muhammadu Buhari.

When the 2020 Appropriation Bill was signed last December, the price of oil was averagely around $60 per barrel, but it started to crash this year when Saudi Arabia and Russia started a price war and then the Coronavirus pandemic. At a point this year, the commodity was sold for $11 per barrel.

In late April, oil producers in the world came together and agreed to cut supply by 10 percent or 9.7 million barrels per day so as to lift prices.

The agreement took effect on May 1, 2020 and the cut has been very effective because the price of crude oil has since picked up and as at yesterday, it traded at $39 per barrel.

Speaking recently on federal government’s decision to further slash the benchmark to $25 per barrel, Mr Udemezue said government was too quick to cut the threshold from $30 per barrel, arguing that it was should have been left alone.

“The federal government, in my opinion, was too hasty in slashing the crude oil benchmark,” the Managing Director of Flame Academy & Consulting Limited said on Channels TV’s Business Morning monitored by Business Post last month.

According to him, government should have known that the prices of crude oil will continue to rise as economic activities continue to pick up due to the ease in the lockdowns across nations of the globe.

“It was there for them to begin to see that the demand for oil will pick up and right now, it is somewhere around $30 per barrel (on May . It will continue to go up as more activities continue occur,” he said.

According to him, crude price, apart from the Saudi/Russia price war, was mostly affected by COVID-19, which put many economies into a “self-induced coma.”

He said if the central government had put all these into consideration, it should have known that oil will surely pick up before the end of the year, wondering why the haste in reducing the benchmark again after the first one nearly three months ago.

However, he advised government to start to think of life without oil because that reality is already staring at the country. He asked policy makers to think out of the box so as not to get stranded at the end of the day.

“Many global airlines have begun to look at more efficient, less fuel efficient, more fuel efficient aircraft, so they’re going to be replacing the aircraft.

“There have also been innovations around electric motors, alternative energy, climate change concerns and all of that,” he said.

https://businesspost.ng/economy/2020-budget-fg-too-hasty-slashing-oil-benchmark-to-25-udemezue/

Jumia Partners International Breweries, Unilever to Distribute Products
https://businesspost.ng/brands-products/jumia-partners-international-breweries-unilever-to-distribute-products/

StanChart Unveils Platform to Buy, Sell FGN Bonds
https://businesspost.ng/banking/stanchart-unveils-platform-to-buy-sell-fgn-bonds-t-bills/

Nigeria Meets Only 19% OPEC+ Cut Compliance
https://businesspost.ng/economy/nigeria-meets-only-19-opec-cut-compliance/

Analysts List Factors to Impact Crude Oil Prices This Week
https://businesspost.ng/economy/analysts-list-factors-to-impact-oil-prices-this-week/

Banks Get Two Weeks Deadline to Resolve ATM, e-Banking Issues
https://businesspost.ng/banking/banks-get-two-weeks-deadline-to-resolve-atm-e-banking-issues/

PPPRA Reduces Petrol Price to N121.50 Per Litre
https://businesspost.ng/economy/pppra-reduces-petrol-price-to-n121-50-per-litre/

One-Year Treasury Bills Rate Rises to 4.02%
https://businesspost.ng/economy/one-year-treasury-bills-rate-rises-to-4-02/

COVID-19: Onyema Highlights Resilience of Nigeria’s Capital Market
https://businesspost.ng/economy/covid-19-onyema-highlights-resilience-of-nigerias-capital-market/

Rising US-China Tensions to Sway Crude Oil Prices
https://businesspost.ng/economy/rising-us-china-tensions-to-sway-crude-oil-prices/

MTN to Sell N50bn Commercial Papers for Operations
https://businesspost.ng/economy/mtn-to-sell-n50bn-commercial-papers-for-operations/

COVID-19 Has Caused Suspension of Some Contracts—Caverton
https://businesspost.ng/economy/covid-19-has-caused-suspension-of-some-contracts-caverton/

Nigeria’s Oil Production Hits 2.07mbpd in Q1 2020
https://businesspost.ng/economy/nigerias-oil-production-hits-2-07mbpd-in-q1-2020/

NASD Securities Exchange’s Year-to-Date Loss Reaches 1.29%
https://businesspost.ng/economy/nasd-securities-exchanges-year-to-date-loss-reaches-1-29/

Return of BDCs to Forex Market Will Strengthen Naira—ABCON
https://businesspost.ng/economy/return-of-bdcs-to-forex-market-will-strengthen-naira-abcon/

Ecobank Emerges Most Innovative Bank in Africa
https://businesspost.ng/banking/ecobank-emerges-most-innovative-bank-in-africa/

By Modupe Gbadeyanka

The National Bureau of Statistics (NBS) on Monday said the Gross Domestic Product (GDP) of Nigeria grew by 1.87 percent in the first quarter of 2020.

According to the NBS, this year-on-year growth posted by the Africa’s largest economy came despite the “backdrop of significant global disruptions resulting from the COVID-19 public health crisis, a sharp fall in oil prices and restricted international trade.”

In a report released this morning, it was stated that in Q1 2020, the aggregate GDP stood at N35.647 trillion in nominal terms, higher than N31.824 trillion recorded in the first quarter of 2019, with a nominal growth rate of 12.01 percent year-on-year.

During the period under review, the oil sector recorded a real growth rate of 5.06 percent (year-on-year) in Q1 2020, indicating an increase of 6.51 percent points relative to the rate recorded in the corresponding quarter of 2019.

However, growth decreased by 1.30 percent points when compared to Q4 2019 which was 6.36 percent. Quarter-on-quarter, the oil sector recorded a growth rate of 11.30 percent in Q1 2020.

The oil sector contributed 9.50 percent to aggregate real GDP in Q1 2020, up from figures recorded in the corresponding period of 2019 and the preceding quarter, as the share of the non-oil economy declined.

On the other hand, the non-oil sector grew by 1.55 percent in real terms during the reference quarter (Q1 2020). This was slower by –0.93 percent points compared to the rate recorded during the same quarter of 2019, and –0.72 percent points slower than the fourth quarter of 2019.

The non-oil sector was driven mainly by Information and Communication (Telecommunications), Financial and Insurance (Financial Institutions), Agriculture (Crop Production), Mining and Quarrying (Crude Petroleum & Natural Gas), and Construction.

In real terms, the non-oil sector contributed 90.50 percent to the nation’s GDP in the first quarter of 2020, less than its share in the first quarter of 2019 which was 90.78 percent and the fourth quarter of 2019 recorded as 92.68 percent.

Activities that witnessed weaker performance relative to Q1 2019 include Quarrying, Road transport, Accommodation and Food services as well as real estate.

Also, in the report, the stats office said the performance recorded in Q1 2020 represents a drop of –0.23 percent points compared to Q1 2019 and –0.68 percent points compared to Q4 2019, reflecting the earliest effects of the disruption, particularly on the non-oil economy.

Quarter on quarter, real GDP growth was –14.27 percent compared to 5.59 percent recorded in the preceding quarter.

https://businesspost.ng/economy/nigeria-records-1-87-gdp-growth-in-q1-2020/