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Business › Re: IMF: Nigeria's Economy To Improve But Unemployment Likely To Remain by NwaNimo1(m): 3:37pm On Jun 17, 2021

Wonderful

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Politics › Re: Lai Mohammed Replies Kid Grandson Who Asked Why He's Called Liar Mohammed by NwaNimo1(m): 2:34pm On Jun 17, 2021*

Grandpa Lai Lai:

I'm 17!

[img]https://media1./images/ccff263735ba782660fca284059753ea/tenor.gif?itemid=5241104[/img]

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Business › Naira Weakens To Lowest In Four Years by NwaNimo1(op): 2:09pm On Jun 17, 2021

Nigeria’s Naira weakened to a four-year low in the parallel market after the Central Bank of Nigeria (CBN) efforts to persuade banks to sell more dollars to customers failed to bridge the widening gap between the official and street rates.

As of Wednesday, black market dealers were offering the naira at 502 per dollar from 500 last week, according to abokifx.com.

The current rate is the weakest since February 2017. It widens the spread between the official and the parallel market rate to 22%, when compared with the spot rate of 411.13 naira a dollar as of 1.55 p.m. in Lagos.

Naira’s weakened current rate did not happen in isolation.

Nigeria’s inflation rate on Tuesday dropped further for the second consecutive month to stand at 17.93% in May 2021 from 18.12% recorded in April 2021, according to the Consumer Price Index report released by the National Bureau of Statistics (NBS).

According to the report, the consumer price index, (CPI) which measures the inflation rate increased by 17.93% (year-on-year) in May 2021. This is 0.19% points lower than the rate recorded in April 2021 (18.12%).

The closely watched index dropped from 22.72% recorded in April 2021 to 22.28% in May 2021, indicating the second consecutive decline in the food index.

On a month-on-month basis, the food sub-index increased by 1.05% in May 2021, up by 0.06% points from 0.99% recorded in April 2021.

Since March last year, the Nigeria economy has led to the devaluation of Naira thrice as lower oil income, which accounts for about 90% of dollar earnings put pressure on external reserves.

Consequently, many Nigerians are switching their naira savings into dollars fearing further devaluation. Goldman Sachs Group Inc. forecasts the naira could weaken to between 440 to 460 a dollar in the short term.

CBN Governor Godwin Emefiele last week met with chief executives of commercial banks and the lenders agreed to increase dollar supply and operate special accounts to meet the requirements of business and travelers, according to Osita Nwanisobi, spokesman for the central bank.

The central bank aims to use lenders to make more foreign currency available to buyers, at around the official rate of between 410 naira to 412 naira to the dollar to reduce pressure on the streets where rates are crashing from excess demand.

“Dollar demand is high; people are buying for storage,” Abubakar Mohammed, chief executive officer of Forward Marketing Communications bureau de change, said by phone from Lagos, the nation’s commercial hub.“There is no effect yet from any increased sale by the banks.”

The widening gap between the official and parallel rates creates arbitrage opportunities, which the central bank says it’s monitoring closely. The central bank wants customers to report any breach to the regulator, Nwanisobi said.
“The CBN shall continue to monitor market developments and is committed to ensuring an efficient foreign exchange market for all legitimate users,” Nwanisobi said.

World Bank on Tuesday said surging inflation is undermining the recovery of the Nigerian economy, pushing 7 million Nigerians into poverty and encouraging criminality as rising prices deplete already limited incomes.

The World on Tuesday projected Nigeria’s economic growth of 1.8% this year, compared with a previous estimate of 1.2%. But it warned in its Nigeria Development Update report that without deep reforms, the economy will continue to grow slower than the pace of population expansion of about 2.6% a year.

https://guardian.ng/news/naira-weakens-to-lowest-in-four-years/

Politics › Re: Vice President Osinbajo Inaugurates The National Road Safety Advisory Council by NwaNimo1(m): 2:04pm On Jun 17, 2021*

Road safety?

Fix the roads first

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20 Likes 1 Share

Politics › Re: Anthony Okogie: Nigeria Becoming Killing Field, Failed State by NwaNimo1(m): 1:00pm On Jun 17, 2021*

A.nother

P.riest

C.omplains

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Abuja invite loading?

https://lh3.googleusercontent.com/-18ZIeXCfgP8/WcvfVKupB_I/AAAAAAAACZM/C8sfkOtmlycD0gnwxUVP_7VSyXXe66EOgCHMYCw/s1600/FATHER-MBAKA-1.jpg

D.ont

S.ay

S.hishi

16 Likes

Politics › Declining Output Dampens Nigeria’s Gain On Rising Oil Price by NwaNimo1(op): 10:53am On Jun 17, 2021

Nigeria’s earning prospects from the rising price of crude oil in the international market is being dampened as the country continues to grapple with declining oil production output.

Nigeria’s oil production is continuously challenged since beginning of the year with key assets like the Qua Iboe, Forcados, Bonny, Bonga, Escravos facing production challenges.

This is as oil prices reached their highest in more than two years, Tuesday, buoyed by expectations that demand will recover rapidly in the second half of 2021.

Brent crude rose 77 cents, or 1.1 per cent to $73.63 a barrel. The global benchmark during the session hit $73.90 a barrel, its highest since April 2019.

However, despite the rising trend in oil price, Nigeria will not earn as much as it should because, according to reports, the country’s oil production is averaging as low as 1.64 million barrels a day mb/d in 2021, on the back of security concerns, regulatory risks further hamper supply outlook

Nigeria’s oil production growth will remain impeded in 2021 as it faces teething technical and operational issues, which are being exacerbated by the recent rise in pipeline leaks and sabotage, industry sources and analysts said June 14.

The country’s crude production has been languishing at only two-thirds of its full capacity this year due to these factors along with its obligations under the OPEC+ production cuts.

And, with further fiscal and security uncertainties ahead, the outlook for the country’s oil sector is likely to come under pressure despite the implementation of some reforms, they added.

Nigeria has the capacity to produce around 2.2 million-2.3 million b/d of crude and condensate, but production has averaged around 1.64 million b/d so far in 2021, according to S&P Global Platts estimates.

In the last six months, many of its large oil fields especially those in the Niger Delta like Forcados, Bonny, Escravos, Brass River and Qua Iboe and some offshore fields like Bonga, Usan, EA, have been pumping much below their normal levels due to either technical or maintenance issues.

There has also been a rise in leakages at some of the country’s key pipeline networks. Some of these were because of an increase in pipeline sabotage while others are because of the country’s fragile and aging infrastructure, some of which need urgent rehabilitation work.

In April and May, there were shut-ins by some of the producers using the Nembe Creek Trunk Line to transport their production to Bonny Terminal, due to a couple of leakages on the line, according to an official from the Nigerian petroleum ministry.

“Maintenance repairs on the Trans Ramos Pipeline, leading to production shut-ins by producers using this pipeline, also affected Forcados terminal’s production,” the official said. “There was also maintenance at Bonga, as well as pipeline maintenance and repairs at Escravos, resulting in underperformance.”

Qua Iboe output took a hit in December due to an issue at its terminal, which led to a one-month halt in its crude loadings. While the EA oil field is currently undergoing maintenance work at its offshore terminal, sources added.

The country’s production growth is also threatened by fiscal stress and the lack of regulatory reforms.

The rise of kidnappings and other security threats in the oil-producing south are also expected to deter investment.

S&P Global Analytics revised down its crude supply forecast for the second half of 2021 by around 130,000 b/d to 1.8 million b/d.

Nigerian crude loadings have been “showing consistently lower volumes on recent pipeline issues,” and with “violence rising in the southeast” of the country, downside risks are growing, it said in a recent note.

Nigeria is just starting to take steps to strengthen its relations with international oil companies in a bid to stem its recent output decline.

The Nigerian National Petroleum Corporation, NNPC, recently signed a deal with its partners in the deepwater oil block OML 118, clearing the path to a major expansion of the country’s Bonga oil and gas field.

But international oil companies are urging the government to urgently pass the landmark energy legislation the Petroleum Industry Bill into law, which would send a strong signal to investors of more predictability.

The PIB is expected to be passed by parliament sometime in H2 2021, government sources said.

This key legislation, which is meant to completely overhaul the Nigerian oil industry and provide new fiscal incentives to producers, has been in the works for more than a decade.

Under the latest OPEC+ deal, Nigeria has been allowed to increase crude production to 1.535 million b/d and 1.554 million b/d in May and June, respectively. For July, its quota will rise to 1.579 million b/d.

https://leadership.ng/declining-output-dampens-nigerias-gain-on-rising-oil-price/

Politics › Re: If US And UK Can Peacefully Split, Why Can’t Nigeria: Aminu Sa'ad Beli by NwaNimo1(m): 10:38am On Jun 17, 2021

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Politics › PDP Govs Want NNPC To Fund Their Wasteful Spending – Presidency by NwaNimo1(op): 10:31am On Jun 17, 2021

The presidency has condemned the communique by Peoples Democratic Party (PDP) Governors against President Muhammadu Buhari administration.

The Forum had queried loans procured by the federal government and accused the Nigeria National Petroleum Corporation (NNPC) of failing to pump money into the economy.

Presidential spokesman, Garba Shehu said the position demonstrated why the PDP and its members should not be entrusted with national leadership of Nigeria.

He noted that in protest against the NNPC not making contributions to the Federation Account, the governors expect the company to spend the same money twice – on petroleum subsidy and on their states.

Shehu insisted that NNPC as a trustee for Nigeria must manage its finances with prudence to safeguard the financial support for the country.

“What the governors are asking of NNPC is to “break the bank” for their own profligate political ends”, the aide noted.

Shehu said “similar profligacy and contradiction” are in full view with their call to the Central Bank to appreciate the value of the Naira.

This, according to him, would damage exports, including oil revenues on which NNPC depends, and also damage small businesses and employment.

“But an appreciated currency would benefit those spending on luxuries from abroad – this, no doubt, being the leading desire of a typical PDP governor,” he said.

Shehu lambasted the governors’ “refusal” to support the Buhari administration’s desire to reinstate the local government as the third tier and finding a lasting solution to farmer-herder conflicts.

The spokesman said they rejected it, denying Nigerians their constitutional right to live in any state and preferring to appeal to ethnic division rather than support the first practical solution offered since independence.

On the Governors’ appeal to each other for more involvement of states in mining and geophysical activities, the presidency wondered why it took so long when they long had the powers to do so.

https://dailypost.ng/2021/06/17/pdp-govs-want-nnpc-to-fund-their-wasteful-spending-presidency/