₦airaland Forum

N413bn Subsidy: Marketers Doubt Approval By N’Assemby

http://www.nairausd.com/2015/11/n413bn-subsidy-marketers-doubt-approval.html?m=1

By Chika Izuora

As oil prices continue to plummet, major oil companies are slashing budgets and pruning staff strength.


The number of jobs gutted from oil and gas companies around the world has now passed the 250,000 mark, with still more to come, according to industry consultant Graves & Co.

“I was surprised it’s gotten this far,” John Graves, whose Houston firm assists in oil and gas deals with audits and due diligence, according to report by Bloomberg.

The industry has idled more than 1,000 rigs and slashed more than $100 billion in spending this year to cope with oil prices that have fallen by more than half since 2014.

Oil services, drilling and supply companies are bearing the brunt of the downturn, having accounted for 79 percent of the layoffs, according to Graves.

U.S oil producers resumed their pullback on drilling this week, idling 10 rigs in an effort to cut costs and stem the rising tide of crude supplies that’s gutted oil prices to about $40 a barrel.

The cuts extended a five-year low in activity after the two rigs added last week proved to be a short-lived pause in three months of down sizing.

Similarly,PricewaterhouseCoopers observes a fading business in Africa as $50 crude shuts door on high-cost deals.

It said, now, oil below $50 has made more than two out of three investment projects on the continent non-viable.

“Capital markets are effectively closed to the oil and gas industry” in Africa, Tony Hayward, former head of BP and now chairman of General Energy, said at a conference in Cape Town in October.

“A decade of exploration, with billions of dollars invested and only limited commercial success.” When six of the 10 biggest global oil discoveries in 2013 were made in Africa, it underlined the potential of the energy riches that had lured companies from Royal Dutch Shell to Exxon Mobil Corp.

Governments have been slow to react as the slump in crude makes the royalties charged from Libya to Angola look punitive. African production, already 19% below its 2008 peak of 10.2mn bpd, is set to drop for a third year.

While final investment decisions have been made on less than 10 per cent of the 48 billion barrels of oil equivalent discovered in the past decade, governments haven’t adapted to the new environment, Martin Kelly, director for sub-Saharan Africa research at consultancy Wood Mackenzie, said in an interview at the Africa Oil Week conference.

Source:http://www.nairausd.com/2015/11/sliding-oil-price-global-industry-job.html?m=1

TTwitter @nairausd

DropShot:
What is the official bank rate? Forget parallel market.

In posted there already.

Don't ignore PARALLEL Rate for your own good

The naira fell to N232 to N242 against the United States dollar at the parallel market on Monday after the Central Bank of Nigeria cut dollar supply to Bureaux de Change operators in a bid to conserve the external reserves.



The naira, which traded at 238 against the dollar on the streets of the nation’s major cities on Friday, depreciated considerably as demand overwhelmed supply at the black market and the BDC segment on Monday.

For some weeks, the naira had traded between 230 and 234 to the dollar at the parallel market.

The local currency has, however, remained unchanged at 197 to the dollar on the official interbank market.

Foreign exchange dealers told our correspondent on Monday that the CBN suspended its weekly intervention in the BDC segment on Thursday.

The CBN sells $60,000 to each BDC operators in its twice-weekly intervention in that segment and is expected to save about $180m every week when it eventually stops dollar sale intervention to the BDCs.

“The central bank has reduced the amount of dollar sold to bureaux de change at its twice-weekly intervention, which has also been cut to once a week now,” a BDC operator, Harrison Owoh, told Reuters

He said the reduction in volume of dollar sale by the central bank coupled with year-end surge in demand for foreign currencies by importers had impacted negatively on the local currency.

The President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, confirmed the development.

He said the central bank had announced last Thursday its decision not to intervene in the BDC market on Friday.

He was uncertain if the action was permanent or temporary.

However, the CBN Governor, Mr. Godwin Emefiele, said on Friday that the bank was saving $100m every week from its weekly dollar sales to the BDCs.

According to him, the number of the BDCs buying dollars from the CBN has reduced by about 50 per cent since the introduction of the Bank Verification Number as a requirement for forex transactions.

Emefiele said, “We have seen the number of the BDC operators who purchase forex from the central bank every week drop from an average of about 2,886 to just below 1,200 BDCs, thereby giving the CBN forex savings of almost $100m per week.

“This policy seems to have chased away unscrupulous BDC operators and allows only genuine operators to remain in the market. Domestic production of excluded items such as tomato paste, rice, fish, aluminium items and others are picking up gradually. Despite the sharp drop in inflows, our foreign exchange reserves are still at about $30bn, which is enough to cover about six months’ of imports as against the traditional benchmark of three months.”

http://www.nairausd.com/2015/11/naira-hits-n232-to-n242-as-cbn-cuts.html?m=1

Twitter @nairausd

lawrenceunaa:
instead of me to pray for Nigeria, I better pray for Nigerians that God may give them commonsense. Nigeria is a country for the unoppressed to suppress the voice of the oppressed

Guy you tough

feelamong:
Dollars plenty...... na customers with BVN to buy the dollars that are scarce... hence they all flock the illegal markets..

Infact Genuine BDCs are finding it hard to sell all their dollars to genuine customers with BVN

http://leadership.ng/business/477161/cbn-saves-300m-demand-bvn-bureau-de-change

No my bro , neither it BDC operators nor customers fault.

It the tight regulations CBN introduced that's affecting the sales of Major Currencies.

When I get the complete information.

I will post it here through
http://www.nairausd.com/?m=1

feelamong:
Dollars plenty...... na customers with BVN to buy the dollars that are scarce... hence they all flock the illegal markets..

Infact Genuine BDCs are finding it hard to sell all their dollars to genuine customers with BVN

http://leadership.ng/business/477161/cbn-saves-300m-demand-bvn-bureau-de-change

No my bro , neither it BDC operators nor customers fault.

It the tight regulations CBN introduced that's affecting the sales of Major Currencies.

When I get the complete information.

I will post it here through
http://www.nairausd.com/?m=1
Anyway re

lawrenceunaa:
#1000 for $1 loading.........
rejoice oh ye polithieftians for u inherite the zoo

It not funny.

Nigeria is at danger stage.

Pray for the Nation

39.5million Nigerians Are Excluded From Financial Services – CBN


http://www.nairausd.com/2015/11/395million-nigerians-are-excluded-from.html?m=1

39.5million Nigerians Are Excluded From Financial Services – CBN


http://www.nairausd.com/2015/11/395million-nigerians-are-excluded-from.html?m=1

http://www.nairausd.com/2015/11/exchange-rate-of-dollar-to-naira24th.html?m=1

Twitter@nairausd

What is happening.

Exchange Rate Of Dollar To Naira,24th Tuesday November 2015


http://www.nairausd.com/2015/11/exchange-rate-of-dollar-to-naira24th.html?m=1

By BusinessNews Staff

A former Governor of the Central Bank of Nigeria, Prof. Chukwuma Soludo, on Thursday faulted the implementation of the Treasury Single Account by the Federal Government and called for its immediate review.



He also advised President Muhammadu Buhari to remove the controversial fuel subsidy and privatise the nation’s refineries immediately.

Soludo spoke in Lagos during the third anniversary lecture of the RealNews magazine.

He said the TSA policy was good but needed some reviews, because the government could not afford to keep funds with the CBN and starve the economy of the necessary liquidity.

Soludo said, “The Treasury Single Account is a great initiative, and I congratulate PMB for that. However, we don’t have to return to the past of having every penny of government largely redundant in the central bank.

“For an economy desperately in need of stimulation, piling up idle cash at the CBN is not sound economics. We should deploy technology and transparent rules to implement a hub and spoke model of the TSA whereby the CBN is the hub, while the commercial banks remain the spoke.

“Of course, there are some benefits of keeping it at the CBN, including possible anti-corruption outcome; but as a proverb says, ‘you don’t set your house ablaze because of the irritation of a rat in the house’. We can rid the system of corruption and realise all the benefits of the TSA but still not starve the economy of the necessary liquidity.”

On fuel subsidy, the former CBN governor said Buhari had the moral authority and legitimacy to quickly remove it and privatise the refineries.

“The fundamental case against subsidy removal is not economic: it is the fact that the citizens do not trust the government to optimise the use of the proceeds for their welfare. If PMB does not deal with these issues now, I wonder when, if ever,” he said.

Source:http://www.nairausd.com/2015/11/soludo-urges-fg-to-review-tsa-remove.html?m=1


Twitter@nairausd

InstaForexyemi keep doing what you know best.

Though l am a novice in forex market but l will like to know more.

Instaforexyemi

Deputy Governor of the Central Bank of Nigeria (CBN) Dr. Sarah Alade has denied a news report that the CBN plans to restrict dollar supplies to the interbank foreign exchange market.



Bloomberg had quoted an unnamed source as stating that the central bank had told commercial lenders at a meeting last week that it plans to cut dollar supplies to the market because it is running short of reserves, according to a person who attended the talks.

It said in its report yesterday that Alade told treasurers of the country’s banks at the meeting in Lagos on November 13 that they should prepare for exchange-rate policies to remain in place for longer and that there are no plans to devalue the naira or to loosen currency-trading restrictions, according to the person, who asked not to be identified as the talks were private.

The central bank will only sell as many dollars to banks or currency-dealers as it receives from oil exports, which amounts to about $1 billion a month, the person was quoted by Bloomberg as stating.

Speaking to THISDAY on Thursday, Alade confirmed that there was a meeting with bank treasurers last week during which strategy was discussed and informed them that the focus of the central bank was to improve lending to the real sector.

When the issue of foreign exchange management came up, she said she informed her audience that the central bank’s policies remained unchanged as it had no intention of devaluing the naira.

She said: “I do not know where Bloomberg got their story from. I never said that the central bank will reduce dollar supply to the market. This was our usual quarterly meeting with treasurers and we focused primarily on strategy and improved lending to the real sector,” she said.

Source. http://www.nairausd.com/2015/11/central-bank-says-no-plan-to-restrict.html?m=1

Twitter@nairausd

NYSC BATCH B. STREAM 1

On Monday I will start.

Thanks for your understanding

NYSC BATCH B. STREAM 1

On Monday I will start.

Thanks for your understanding

On Monday I will start.

Thanks for your understanding

NYSC BATCH B STREAM 1

BALLOSKI:
God forbid!

Hmmmm

Adminisher:
Jimoh Ibrahim is not someone to listen to. A corporate looter and one of the fake, lazy businesmen feeding on the largese of people in government. The man is owing close to N1bn unpaid claims to NICON claim holders alone. See him talking about Monte Carlo simulation as if he ever ran one before. Nigeria is now fully understand the grip of charlatans and Buhari is not putting them in prison fast enough.

Forget what he said. But ask yourself what is the present administration doing for our properity as a nation

veraponpo:
We need to act fast and that is why I believe in this new government

But the new government are not showing any sign

What is the present administration doing about this

The Group Managing Director of Energy Group, Mr. Jimoh Ibrahim, has stated that the world economy will continue to be in pains for the next 10 years and that there is hardly anything any one could do other than to keep things together and avoid the extension of the likely recovery period.



Ibrahim further explained that the world economy was growing at seven per cent in 2007 when Nigeria had the boom and the economy slid to about three per cent in 2008 and by flow of average the global economy has been osculating in the last seven years, recording a growth of three per cent

“Even if the global economy is going to grow at seven per cent next year, it is not possible to enjoy drastic economic boom until we make up for the deficits of the last seven years. If you calculate that and using the probability on the Monte Carlo stimulation exercise a ten year bet is imperative if we have good governance and do things right,” he said.

Ibrahim advised government to be in congruent reality with basic principle and relax the regulations regime if the fight against corruption will ever have any meaning.

He said many regulations made government officials to feed fat on corruption, as those who intend to keep business do more public relations to stay on, stressing that the cost of such public relation is now unavoidable by the private sector.

“There are signs of recovery but our concern too is in the fact that there are dangerous conflicting signs and that is why it has become not immediately possible for the Federal Reserve Bank and the Bank of England to increase the interest rate.
“The price of oil will move up as soon as we approach the weather situation and geomorphology conditions will assist Nigeria in getting better price for her oil,” he added.

Ibrahim urged the Buhari administration to take advantage of the incoming increase in the price of oil to prioritise government projects and use the pilot approach in delivering his promise to Nigerians.

He advised the National Assembly to come up with ways and constitutional means of monitoring federal allocation to the states by way of revisiting the Nigeria fiscal federalism, which he said would prevent wastage of government resources, adding that it is almost becoming impossible for the states assemblies to exercise their oversight functions at the state level and they need help.

The business mogul advised Nigerians to give Buhari a little more time in the face of the global trends of geo political movement and the China destructive innovation affecting the global economy.



[ThisDay]

Source::http://www.nairausd.com/2015/10/economic-pains-to-continue-for-next-10.html?m=1


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Exchange Rate for B Pound-Naira, 27th Tuesday October 2015



http://www.nairausd.com/2015/10/blog-post.html?m=1

Exchange For Euro To Naira, 27th Tuesday October 2015



http://www.nairausd.com/2015/10/exchange-for-euro-to-naira-27th-tuesday.html?m=1

Exchange Rate Of Dollar To Naira,27th Tuesday October 2015

http://www.nairausd.com/2015/10/exchange-rate-of-dollar-to-naira27th.html?m=1

Zinicc:
Pls what do you mean?

Will you sell to me?

Sorry Zinicc, l am not into trading of currency for now. But give out information of it.

Exchange Rate for B Pound-Naira, 26th Monday October 2015



http://www.nairausd.com/2015/10/exchange-rate-for-b-pound-naira-26th.html?m=1

Exchange For Euro To Naira,26th Monday October 2015


http://www.nairausd.com/2015/10/exchange-for-euro-to-naira26th.html?m=1

Exchange Rate Of Dollar To Naira,26th Monday October 2015


http://www.nairausd.com/2015/10/exchange-rate-of-dollar-to-naira26th.html?m=1