₦airaland Forum

rvp2018:
PRESIDENT RUTO says his government will explore raising financing for State projects at the NSE as opposed to borrowing from external markets. http:///3EAZAem


One of Uhuru failure was not use the Nairobi Stock Exchange to raise financing for gov. Ruto is keep to change this...and today rung the NSE bell.

Maybe due to these sentiments your NSE market reacted yesterday as it gained around 2% for the trading day (if I'm not mistaken). But your market really suffered this year though due to capital flights and all that.

rvp2018:
I dont see how this is big. it's chaotic mess. You gov need to encourage farmers to belong to cooperatives and the cooperative to build silos - and assist in proper marketting of their produces.

Kenya has National Cereals Produce board that has silos all over the country - it not functioning well but it way ahead of nigeria

The same is replicated in tea, coffee, etc.

You need formalized marketing boards..hopefully run as cooperatives that aggregates smallholder farmers.. that not only meet the local needs but the export of these products...not flea markets like these.

Ghana has good Cocoa board.....it just a shame Ghana gov sometimes uses it as collateral to borrow money

I agree. However, this grain business is still big because it is situated in the second most populated state in Nigeria with around 20 million people and majority are employed by these and other agricultural activities.
Textile is also big in this state employing millions but informal trade as well.

. Nairaland bots easily banning my account.

Mkenya2019:
I already did. My calculation was based on reported revenues.
https://tribuneonlineng.com/nigeria-lost-n4-2-trillion-crude-oil-revenue-in-6-months/

In six months - you earnt 3.8B dollars - for full year expect about 6B dollars - then add little you collect in the ZOOOO. The oil production (gross) will be about 30-40 dollars

Youre in the post default state - a zoo that spend nothing on everything - gov just exist - little social investment - little infrastructure - little investment in anything - gov just exist in name - it like somalia or burundi or chad or niger - with a private sector.

Consequently, with the average crude oil price for the month at $86.5 per barrel, the country only earned $3.757 billion as crude oil revenue, instead of $4.51bn, thus forfeiting $756 million. 
https://tribuneonlineng.com/nigeria-lost-n4-2-trillion-crude-oil-revenue-in-6-months/

Nigeria still made it's own share of gains in H1 2022 though. According to Nairametrics:

Nigeria recorded a crude oil export of $27.8 billion in H1 2022, a 37.7% increase when compared to $20.16 billion recorded in the second half of 2021 and an 85.1% increase from $14.99 billion recorded in the corresponding period.
In the same vein, gas export earnings in the period under review increased by 40.7% year-on-year to stand at $3.81 billion.

So at least Nigeria still made more crude exports than same period 2021. Though this could have been far much more.

If you ask me, I'll say:

Nigeria is poised to make close to 70 Billion dollars in exports this year ( which may only be less than that of South Africa as usual). In 2021, South Africa was top with about 75 billion dollars in exports. Nigeria was second with 47 Billion dollars and Egypt third with around 35 Billion dollars.

In terms of Diaspora inflow (Jan-June) 2022.

Nigerians received $10.11 billion as diaspora remittances between January and June 2022, representing a 9.6% increase compared to $9.23 billion received in the corresponding period of 2021.

Nigerian current account balance for first 6 months 2022. 7.7 Billion dollars.

https://nairametrics.com/2022/10/05/nigerias-current-account-balance-rises-to-9-year-high-of-7-7-billion-in-h1-2022/

Mkenya2019:
Obaboon - that gross oil revenue - what eventually get to gov coffers (net revenue) is very miniscule - as they are expenses. Your ZOO Oil production has dropped from 2 million barrels per day to now a bout a million

Nigeria’s crude oil revenue jumped to N11tn in the first six months of 2022, according to the latest data from the National Bureau of Statistics’ Foreign Trade Statistics for the second quarter of 202

So what was the net revenue?

Mkenya2019:
I hope you dont do that - it will have terrible implications. Just sweat talk IMF

IMF is crazy. They bring in unsuitable conditions for what, 3 billion dollars??
Even the 3 billion dollars is to be in piecemeal. 1 billion dollar per year, for what??
Local debt restructuring is very dangerous especially to Local banks and financial institutions and I trust the Ghanaian Government understands that already.

obaaderemi:
As you can see, Kenya is inching towards distress.

Kenyans here mock Ghana but all analysts in the world regard their situation also as one of the most dangerous in Africa together with Ethiopia as well in the top three bracket if we exclude the likes of Zambia, Mali, and the rest who have already defaulted.

Top African countries in danger of default in coming months and years. Nigeria and South Africa said to be growingly concerning as well.

rvp20182:
Kenya has never defaulted and is not about to start. We have new gov fixing small details and we will be fine.

New Govt cannot perform magic overnight. Wake up and smell the coffee.

rvp20182:
I think you're post default state - gov budget is miniature - gov services absent - nothing basically works - except private and individual initiatives.

Then how come Nigeria hasn't defaulted and has never been regarded as a country in danger of default?
Kenya is one of top two countries in Africa feared to default in the coming months if something is not urgently done.

obaaderemi:
Thank you for admitting you are confused about how Nigeria could continue to be on its feet. That's our secret. We can't default on our debt. Our society is robust economically. Unlike the Kenyan economy reeling from debt. If there's going to be a defaulter, it's Kenya.

It's the same way with everything else we tell you here about Nigeria being ahead of Kenya. You and your brothers will continue to be confused.

Kenya is regarded to be one of the top three countries in Africa that could default on debt within the next six months if something is not done urgently.
I am surprised they come here to play, it's either these guys here do not know watz up with their country Kenya at the moment or they are simply in denial.

rvp2018:
How do you propose to tax flea markets. Understand difference btw taxes and revenues from market licenses, fees and others. Those are not taxes. You cannot run a country by chasing traders in Balogun market

Quickest way to tax is to go for transanctions. You say Nigeria makes 3.7 billion transactions annual through the payment system. If you tax - 1 dollar per transaction - you're talking 3.7Billion dollars. This will affect everyone and widen the tax net.

To chase informal traders across Nigeria will just result in broken limbs and zero tax collection.

I agree with you on this. Government was trying to do this recently especially with the telecommunications which has in total 206 million users ( because some people are active in at least two lines). We have by far the largest number of active internet subscribers in Africa at 109 million people. Second largest is Egypt with 78 million people. These are the areas we should focus on but Nigerians would protest and hold the Government by the jugular and this is election period.

Balogunodua:
Nigerians are way more productively than your shithole citizens get thaf into your skull.

Reason for low tax collection in Nigeria is because the government have refused to tax businesses, especially the informal sector. But the federal government is already planning to expand our tax net, and there was improvement since 2021.

Some experts were proposing to Lagos Government how to tax market behemoths like Balogun market and computer village just few days ago using technology. I pray the Government comes through with it. Formally taxing computer village in Ikeja properly mehn. Imagine what that that would do for Lagos revenue. Not to talk of Balogun market and the other larger markets across Lagos.
Some of these markets even pay taxes informally to non state actors at the moment.
Kano also have some of the largest textile markets in West Africa and other markets there, then there is Onitsha and Nnewi in Anambra.
They say Anambra has one of the lowest unemployment in Nigeria. I served in Anambra and I tell you this is true. I tell you there are very few private firms there, it's littered with sme's manufacturing all sorts of things, small scale and medium scale. Government in Anambra must find a way to use the BVN, NIN and other forms of technology to bring all of these guys into the data base.

Africa grabs 3.5 Billion dollars venture capital in first 6 months of this year. Nigeria, Kenya, Egypt, South Africa, Ghana all at the very top of it in that order.

https://www.youtube.com/watch?v=f8FtgLgsh0Y

Fourpockets:
I don't know, English?
But on a serious note it feels strange, even in Nigeria, our president hardly wears colonisers suit, he will rather wear traditional

All Nigerian politicians generally.

rvp2018:
NNPC-It has never made profit for 45yrs - and has never paid dividend.
Compare oranges with oranges.
Kenya SOES in oil industry are Kenya Pipeline,National Oil of kenya and KPRL (Kenya Oil refineries) -
Kenya Pipeline almost annually makes 100M dollars in profit - and has therefore earned Kenya gov billions.
And has never made a loss.
How do you make loss selling petrol or gas

Kenya Pipeline - manages the downstream finished oil product pipeline from Mombasa to Nairobi, Kisumu, Eldoret and Nakuru

KPC Managing Director Macharia Irungu said over time, the company had provided a good return on investments to its shareholder.
"We have grown to be one of the largest parastatal in Kenya. During the last eight years, we have generated over Sh80 billion in profits before tax and paid over Sh 50 billion in taxes to the government during the period,"Irungu said.

NNPC-It has never made profit for 45yrs - and has never paid dividend

Just stick to what you know man. NNPC has always been the major remitter to the Nigerian Government until first quarter of this year. This is one of the best years for NNPC but it has not remitted due to increase in expenses. There's a huge uptick in subsidy payments this year. It is also working on refineries, building more stations in addition to subsidy payments.

There have also been a 50% decrease in oil production in Nigeria since 2021 but despite that NNPC has made billions of dollars from crude oil in the first half of this year ( definitely over 15 billion dollars if I'm not mistaken) and about 4 billion dollars from gas exports alone in that first 6 months. However there is the desire for expansion of gas infrastructures and refinery repairs hence the focus have shifted from mainly remitting to Government account like they always did in time past, to making profit.

theenchanter:
I still reiterate my stance over acfta that not until there's a common currency and interconnected transport system..... Acfta might not work. Only some paltry goods here and there will be traded.

Afreximbank is doing something about the currency problem at the moment. They just released 40 Billion dollars to that effect. Gains would be made from now until the next 5 years.

Mkenya2019:
Look like Buhari has forced them to cook books - but cant cook money in the bank.

The Nigerian National Petroleum Company (NNPC) Limited has disclosed that it made N2.38 trillion revenue from oil sales, however the corporation didn’t remit any money to the Nigerian government’s account in six months.

According to the Federation Accounts Allocation Committee (FAAC) report published on Tuesday, NNPC Limited spent the N2.38 trillion on several projects such as repair of refineries, National Domestic Gas Development, Pipeline Security & Maintenance cost, cost recovery/cash call.

This left the NNPC Limited with zero naira to remit into the coffers of the Federal accounts, with oil search (Frontier Exploration Services), Gas Infrastructure Development, Pre-Export Financing, Nigeria Morocco Pipeline also gulping part of the revenue.

Yah keep googling lol.
The PIA was signed in 2021. With the PIA and commercialisation of the NNPC under normal circumstances it shouldn't remit to the Nigerian Government but use the money to expand, work on projects and make more profits. 2.38 trillion naira is over 5.5 billion dollars at this time but NNPC is trying to become commercialised.
In June 2023, it would be listed on the Nigerian stock exchange.

Mkenya2019:
Exactly. That is why you need a partner who knows what they are doing. Not NNPC with 45 years loss making history. I am sure they turned profit due to the current oil crisis worlwide. When Oil return to 50 dollars a barrel...they will be back to making huge losses.

They started making profit since 2019. In 2020, they made about 650 million dollars for the first time. Was there an Oil boom in 2020? In 2012 there was also an Oil boom but no profit was declared. How much of an oil boom did we have in 2021?
It's just an NNPC ongoing reformation, that's all.

Mkenya2019:
KCB is now just behind Zenith and FirstBank. Next year they overtake Zenith and just remain behind First Bank. 2024 they overtake FirstBank. Equity you can bet will be following closely. Now I think you should give up.

So Zenith and First Bank are not planning to move forward next year?

Mkenya2019:
Kenya banks are rising very fast. I think KCB joined top Africa100 - 10yrs ago - followed by Equity - they have climbed to top 20 in Africa - followed by 10 other kenya banks. 2-3 years from now - KCB and Equity will have overtaken all Nigerian banks - followed closely by 15 other Kenyan banks - who are all aggressively expanding.

You said thesame thing about two years ago. Give it up my friend. Nigerian Banks also have some small branches in UK, Canada, UAE and the likes and they are not slowing down.

Mkenya2019:
How does that work? Sounds to me that apart from getting into messy downstream business of running filling stations - I dont see how this will work. So they will change their accounting systems but the board will remain from gov? And management will be from gov. The only way out is to sell at least 40 percent of shares to big oil company like Amarco or something that can provide strategic leadership...

How does Saudi Amarco work? Are they privatized?

Mkenya2019:
The former state-owned company, known for its relatively poor leadership and lack of profits for some 45 years, will now be independent of government and operate without state funding, with the new goal of delivering value to its shareholders.

Yeah a form of Commercialisation which is a bit different from Privatisation though.
It's still owned by the Government but would be allowed to operate as an independent profit making organisation.

Mkenya2019:
NNPC, which became a commercial company in July, first declared a net profit in its 44-year history two years ago.

Massive Corruption.

kikuyu1:
Yesterday lunchtime I had this very Convo with a pal! His FIL is Congolese and he makes frequent trips there and to WA on biz.
These guys are similar!
- They produce very little of value,even agro products are scant as I'm sure you know
- mainly involved in rent seeking activities like facilitation, brokerage,etc,etc
- fond of quick money deals with no patience for building, manufacturing or production of any kind
- emotionally attached to occult forces, ie voodoo as we've already seen with Waffa Trokosi system
- self esteem issues make them value appearance over everything
Congolese and Waffas, especially Naijjans can be as vain as byatches!

These sociocultural/economic traits are outtakes of Post Traumatic Slave Syndrome we've commented on before.

You are quite hilarious.

fond of quick money deals with no patience for building, manufacturing or production of any kind

What exactly does Kenya produce or manufacture?

rvp20182:
Outside Oil - is there another one?

There are a plethora of them. You have google.
Besides, NNPC is the largest African Energy SOE and in the last few years it has become a profit making organisation, though I believe it has always been, but its data was hidden from the public due to corruption.

rvp20182:
How are SOES related to gov? Obaboon, quick check on Ghana SOES, they made net loss of 2.5B dollars. The least said about the Zoo the better. Do you even still have SOES?

you are very funny. You guys truly underrate Nigeria though.

Nigeria’s national oil company – the Nigerian National Petroleum Corporation (NNPC) – plays a vital role in Nigeria’s economy. In 2020, NNPC became an EITI supporting company in line with its commitment to greater transparency and accountability. Subsequently, the corporation published its group-level audited financial statement and the audited accounts of its subsidiaries, for the first time in the group’s 43-year history.

The disclosure presents key information on the corporation’s financial health. The statement shows that NNPC reduced its loss by 99.7% – from N803 billion (2 billion dollars) in 2018 to N1.7 billion (4 million dollars) in 2019 – thanks to a significant increase in profits from its subsidiaries between 2018 and 2019.

ItooWorWor:
Kenyans on twitter are not happy with the empty shiny building all over Nairaobi

Wahala nor dey finish

17 seconds short clip of Abuja. I love this city mehn.

The city of Abuja ❤️ pic.twitter.com/dNbB5T5cNZ

— Henry Okelue 🇳🇬 (@4eyedmonk) September 30, 2022