₦airaland Forum

The Federal Government is in receipt of no fewer than 400,000 telephone short messages from whistleblowers on looted funds, Information and Culture Minister, Lai Mohammed, said yesterday.

Mohammed told The Nation on Saturday that contrary to speculations that the Whistleblowers Policy might be on the wane, it is thriving quietly and the “discreet but vigorous support from Nigerians” can ensure eventual return of more billions of looted funds.

He said Federal Government’s optimism rests on Nigerians’ massive embrace of the policy.

A web portal, http://whistle.finance.gov.ng, has been launched by the Whistleblower Unit (WBU), a multi-agency team, resident in Federal Ministry of Finance Headquarters for the recording of information on violation of financial regulations, mismanagement of public funds and assets, financial malpractice or fraud and theft that is deemed to be in the interest of the public.

Giving a breakdown of citizens’ preferred means of communicating tips on the existence of looted funds, Alhaji Mohammed advised more Nigerians to “take advantage of the Federal Government’s Whistleblower Policy even though it is clear that people’s interest is being sustained.

”As of 21st September this year, we had received a number of communication totaling 2940 and this includes enquiries , tips, compliments and general advice from the public.

”We have received, through our Whistleblower website, 208 enquiries , and 1580 telephone calls.

Government, he added, has recently received 35 classified tips and another set of 546 unclassified ones.

”We have received 79 tips through telephone calls; 413, 213 through SMS and 145 through our websites.

”Through e-mails, we received 109,” he said.

Alhaji Mohammed also said that after distillation processes by various finance, security, legal and law enforcement teams indicate that of all the tips received and reviewed, 321 are poised to yield results.

”From all the tips received and reviewed, only 321 have been deemed to be actionable. These are tips that can be worked upon for further action,” he stated.

However, he said that he could not give specific information on any amount involved and payments made to whistleblowers thus far.

Mohammed said in February that the policy had yielded $151million and N8billion in looted funds.

He said at that time that the looted funds were recovered via the clues provided by three whistleblowers who gave actionable information to the office of the Minister of Justice and Attorney-General of the Federation.

The biggest amount of $136,676,600.51 was recovered from an account in a commercial bank, where the money was kept under an apparently fake account name.

This was followed by the recovery of N7 billion and $15 million from another person and 1 billion Naira from yet another.

This is besides the $9.2 million in cash traced to a former Group Managing Director of the NNPC. In all,over $160million had been recovered in February.

Later in June,the Federal Ministry of Finance said it had paid N375.8 million to 20 providers of information under the Whistleblower Policy.

The payment, according to the ministry ,was in respect of recovered assets that had been declared free of legal disputes or litigation by the Attorney-General of the Federation.

”This payment, which is the first under the Whistleblower Policy, underscores the commitment of the President Muhmmadu Buhari-led administration in meeting obligations to information providers under the Whistleblower Policy,” the ministry said in a statement.

The Whistleblower Policy was recently amended to include the introduction of a formal legal agreement between information providers and the Federal Government.

The amendment is aimed at ensuring the protection of the identity of information providers during the payment process.

The Whistleblower Unit (WBU) is the first line of response to whistleblower information, where initial review is undertaken before cases are forwarded to the relevant investigative agencies.

http://investorsking.com/fg-receives-400000-alerts-whistle-blowers/ mynd44

Nigeria, the largest economy in Africa, has now generated more than N118 trillion from crude oil production and refining since production commenced in 1961, the National Bureau of Statistics report has shown.

The report which comprises of data from Nigerian National Petroleum Corporation evaluated revenue numbers from 1961 to 2014.

According to the report, a total of 32.70 billion barrels of crude oil estimated at N118.49 trillion were produced between 1961 and 2014.

The highest crude production was recorded in 2015 when 918.66 million barrels valued at N6.14 billion were produced.

However, the lowest was in 1961 when crude oil production started in the country, a total of 16.80 million barrels valued at N18.73 million was produced.

Domestic crude oil refining numbers from 1997 to 2014 showed that 844.19 million barrels of crude oil were received and 835.58 million processed within the period.

The report also disclosed that a total gross oil revenue of N362.43 billion was generated in July 2017, up from N254.02 billion recorded in June 2017. Crude oil sales accounted for N188.15 billion of the revenue, while gas sales generated N29.69 billion, the remaining were from rent and gas flared penalties.

In a separate report, the Nigerian National Petroleum Corporation announced it recorded a total export receipt of $471.90 from the sale of crude oil in July 2017. The figure was $252.56 million higher than the $219.34 million recorded in June.

Nigeria is an oil-dependent nation and oil revenue contribute more than 90 percent of its foreign revenue. However, the economic outlook depends on global oil prices and in recent time has plunged the nation into economic recession.

“These are just numbers with little to no impact on citizens,” said Samed Olukoya, a foreign exchange research analyst at Investors King Ltd. The economy needs to be broadened through effective diversification to sustain economic recovery and create jobs, unemployment is currently 14.2 percent while youth unemployment and underemployment is more than 47 percent of working population.”

The Naira remained stable at N363 to a US dollar.

http://investorsking.com/crude-oil-nigeria-generates-n118tn-53-years/ mynd44

Increased foreign exchange liquidity has started filtering through key economic sectors and prop up Naira value against the US dollar.

The Naira appreciated against the US dollar to N363 on Wednesday, up from N366 recorded a week ago.

The continuous intervention has helped sustain economic activities and stimulates growth, the central bank on Tuesday intervened again in the interbank foreign exchange market with the sale of $195 million.

Since the economy recovered in the second quarter, experts have said recovery was aided by the surge in global oil prices. Suggesting that recovery might be temporary if not diversify across key sectors.

Also, while oil sector rebounded from 15.4 percent contraction recorded in the first quarter to grow at 1.64 in the second quarter, the report showed growth is not broad-based with the manufacturing and services sectors growing below the preceding quarter. The non-oil sector contributes about 90 percent to the gross domestic product, suggesting sustainability of the sector is needed to deepen growth and create new jobs.

“Rising global oil prices remained the force behind economic recovery and has equipped the Central Bank of Nigeria with capital to consistently support the Naira and at the same time stimulate the economy by boosting forex liquidity,” said Samed Olukoya, a foreign exchange research analyst at Investors King Ltd.

Foreign reserves rose to $33 billion in September. Up from $31 billion in August.

Meanwhile, the Debt Management Office announced the Federal Government would raise between N270 billion and N330 billion in naira-denominated bonds in the fourth quarter.

According to the Debt Management office, Nigeria’s debt stood at N19.16 trillion as of June 2017. Foreign debt payment over the next 10 years is estimated to be over $11 billion.

http://investorsking.com/naira-closes-higher-n363-dollar/

Brent crude oil dipped for a second day in a row on Tuesday following increase drilling activity in the US and among OPEC members.

Brent oil plunged from 26-month high of $58.50 a barrel in September to $55.64 on Tuesday as of 11:51 p.m Nigerian time. While West Texas Intermediate oil declined by 2.65 percent to $55.30 per barrel.

brent crude oil

Global crude oil prices rose in September on Turkish threat to block Kurdistan crude supplies for holding a controversial referendum.

However, a survey conducted by Reuters showed crude oil output rose among OPEC members in September, mainly from Iraq and Libya. This publication coupled with bearish sentiment from the US weighed on prices.

“The US rig count shows increased drilling activity after weeks of stalling,” said Norbert Ruecker, head of macro and commodity research at Julius Baer.

Increased oil rigs fit the expectations that shale oil production could once again disrupt OPEC strategy and impact global oil prices.

Again, weak investment in the energy sector and the general drop in global commodity prices last week continue to cast doubt on oil outlook going forward.

Bijan Namdar Zanganeh, Iran’s Oil Minister said “Changes are really related to Libya and Nigeria and the 100 percent compliance of everyone. OPEC’s actions are working and compliance is acceptable overall, although there needs to be some change.”

Organization of Petroleum Exporting Countries said Nigeria and Libya exemption stands until the two nations can sustain their production levels.

http://investorsking.com/brent-crude-oil-plunges-55-barrel-amid-rising-production/ mynd44

The import of Nigeria’s crude oil by the United States increased by 32.1 per cent to 52.36 million barrels in the first half of this year, compared to the same period in 2016.

The US Energy Information Administration, the statistical arm of the Energy Department, revealed in its latest data that the country bought a record 10.24 million barrels from Nigeria in March, the highest monthly import since July 2013.

It imported 9.78 million barrels in January; 5.96 million barrels in February; 9.16 million barrels in April; 8.69 million barrels in May and 8.53 million barrels in June.

With Bonny Light, Nigeria’s main export grade, averaging $51 per barrel in the first half of the year, the 52.36 million barrels imported by the US translate to an income of about $2.67bn for the country.

The US almost tripled the volume of crude oil bought from Nigeria last year, with the biggest monthly import of 8.43 million barrels in July. It imported 76.9 million barrels of Nigeria’s oil in 2016, up from 19.9 million barrels in 2015.

Nigeria saw significant reduction in the US imports of its crude in recent years, starting from 2012, following the shale oil production boom.

The US import of Nigeria’s crude fell to 6.17 million in June 2013 from 10.115 million barrels in May and about 40 million barrels in March 2007.

In 2014, when global oil prices started to fall from a peak of $115 per barrel, Nigeria saw a further drop in the US imports of its crude from 87.4 million barrels in 2013 to a record low of 21.2 million barrels.

For the first time in decades, the US did not purchase any barrel of Nigeria’s crude in July and August 2014 and June 2015, according to the EIA data.

Meanwhile, Reuters reported on Monday that a handful of cargoes had traded in November so far though October cargoes of Angolan and Nigerian were still lingering as demand for that month had slowed due to limited arbitrage and stronger outright prices.

There was still no sign of the Nigerian Bonny Light or Erha loading programmes for November. Bonny Light exports were still under force majeure but are expected to resume later this week as repairs on a pipeline are nearly finished.

ExxonMobil sold a cargo of Qua Iboe loading November 27-28 and a November loading cargo of Yoho, one trader said, without giving further details.

http://investorsking.com/us-buys-2-7bn-nigerian-crude-six-months/

The Central Bank of Nigeria on Friday injected another $308.5 million into the foreign exchange market.

The intervention was to ensure foreign exchange liquidity in the market and deepen the ongoing economic policy.

Mr. Isaac Okorafor, the acting director, corporate communications department of the CBN said the intervention was part of the apex bank intermittent interventions to sustain market liquidity and meet genuine demands in the market.

According to the Governor of Central Bank of Nigeria, Mr. Godwin Emefiele, foreign exchange inflows tick up by 1.98 percent in August, when compared with the preceding month. Adding that the external reserves surged to US$33 billion at the close of business on September 25. Suggesting that the rising global oil prices is fueling surge in revenue generation and renewed business confidence.

Click Brent Crude Oil Jumps To 26-Month High As Kurds Holds Referendum to read more on oil prices.

“Total foreign exchange inflows through the Central Bank of Nigeria (CBN) rose by 1.98 percent in August 2017, compared with the previous month. Similarly, total outflow increased by 7.03 percent during the same period as a result of increased international remittances, inclusive of public sector and JVC payments, which rose by 58.59 per cent in the period under review,” Emefiele had said.

Also, the new foreign exchange policy introduced in April has boosted forex liquidity, economic activities and business confidence, which as seen the All Share Index (ASI) rose by 7.2 percent from 33,117.48 in June to 35,504.62 in August and Investors & Exporters forex window traded over US$7 billion in volume.

While the Monetary Policy Committee, MPC, left interest rate unchanged at 14 percent against the pervasive call for lower policy rate to further stimulate the economy through job creation and mass participation of local players. The Mr. Godwin Emefiele led MPC has managed to moderately converge the foreign exchange rates at the bureau-de-change (BDC) segment of the FX market, the Nigeria Autonomous Foreign Exchange (NAFEX) segment and the parallel market.

The Naira gained N2 against the US dollar to N364 on the parallel market, appreciated from N366 it traded during the week. While it traded at N360 on the Bureau De Change segment.

“The committee will continue to introduce policies that will improve the confidence of foreign investors in the country’s macroeconomic management regime,” Emefiele added.

http://investorsking.com/cbn-intervenes-fresh-308-5m/

sisisioge:
Not received. You might wanna check that you took note of the several si &1 in the address.

I actually did. Maybe you should check again.

sisisioge:
Hello, pls send me a mail. E-mail add is on my profile. Thanks

I just did.

The importation of rice into Nigeria dropped by 88.4 per cent in one year, the Federal Government announced on Friday.

It stated that rice importation dropped from 500,000 metric tonnes imported in 2015 to 58,000MT in 2016.

The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, disclosed this to delegates who participated at the Nigeria Agricultural Joint Sector Review in Abuja.

In his speech, which was read by the ministry’s Director, Planning and Policy Coordination, Mr. Auwal Mai-Dabino, the minister said, “As part of government’s commitments towards reforming the sector for better results, the National Agricultural Land Development Authority and the three universities of agriculture have been restored back to the ministry.

“Steps have been taken toward recapitalisation of the Bank of Agriculture and provision of available sulphate to fertiliser blending plants. These efforts have led to the reduction of rice importation from 500,000MT in 2015 to 58,000MT in 2016, and increased the volume of production through the Anchor Borrowers’ Programme.”

On the purpose of the joint sector review, Ogbeh said it was to assess the progress made in policy implementation in Nigeria’s agricultural sector with respect to the Malabo Declaration under the context of Comprehensive Africa Agriculture Development Programme, Agricultural Promotion Policy and other existing policies, programmes and projects across the country.

“The review period is 2015 to 2016 and all stakeholders are expected to be part of the process. That is why all of you have been invited,” he told the delegates and stakeholders who were drawn from all the states of the federation.

The minister stated that in line with the Federal Government’s Economic Recovery and Growth Plan, and the Medium Term Expenditure Framework, the Federal Ministry of Agriculture and Rural Development recently identified 10 prioritised projects that would double productivity and improve access to export markets in a sustainable manner.

Ogbeh said, “The present administration will continue to partner and collaborate with all stakeholders through the joint sector review for a realistic and transparent assessment of the performance and results of the sector.

“I believe this will assist the government in setting sector policy and priorities, and serve as management and policy support tool for inclusive stakeholder planning, programming, budget preparation/execution, monitoring and evaluation.

http://investorsking.com/rice-importation-drops-88-4-fg/

Nigeria’s factory production continued to grow in September, according to the Central Bank of Nigeria report released on Thursday.

The Manufacturing Purchasing Managers’ Index expanded 55.3 in September, lower than the 57.4 recorded in the preceding month but it is above the 50 level that separates expansion from contraction and also indicates the sector consistency. The manufacturing sector has now sustained growth for a sixth consecutive month.

According to the report, 14 of the 16 sub-sectors surveyed grew in the following order; appliances & components; electrical equipment; chemical & pharmaceutical products; nonmetallic mineral products; printing & related support activities; plastics & rubber products; food, beverage & tobacco products; furniture & related products; transportation equipment; cement; paper products; computer & electronic products; textile, apparel, leather & footwear and fabricated metal products.

While production in the manufacturing sector stood at 58.8 in September, the fastest in recent time and the seventh consecutive month of consistent growth.

Also, the report showed new orders grew at 53.5 in the month, with 10 sub-sector reporting growth, while the remaining 6 contracted in the month of September. Another indication of rising business confidence and demands.

Since the manufacturing sector rebounded 6 months ago following central bank decision to appropriate foreign exchange to manufacturers, the sector has sustained growth and aid economic recovery.

Experts believe continuous forex intervention will further deepen economic growth and boost productivity, new job creation, and wage growth. The economy grew at 0.6 percent rate in the second quarter.

Meanwhile, the Nigerian crude oil, Brent crude oil rose to 26-month high earlier this week to trade at $58.43 a barrel after Turkey threatened to shut down Kurdistan crude supplies through its territory.

The Naira remains stable against the U.S. dollar this week, trading between N366 and N369 to the greenback.

http://investorsking.com/nigerias-manufacturing-sector-sustains-growth-sixth-consecutive-month/

The Senate wednesday passed through second reading, a bill seeking the establishment of the Nigeria Police Development Fund (NPDF), which also proposes the sum of N540 billion annually to fund the Nigeria Police Force for enhanced provision of security.

The bill is sponsored by Senator Abu Ibrahim (Katsina South).

It recommends that when established, the NPDF, should be entitled to 0.5 per cent of the total revenue accruing to the federation account amounting to N370 billion, 0.005 per cent of the net profit of companies operating in the country; N50 billion and 30 per cent of money accrued to the Cyber Security fund which is N120 billion.

Ibrahim argued that from the three sources, the police would get N540 annually, which would ensure adequate training of personnel, provision of barracks, offices and equipment for the law enforcement outfit.

The fund would also oversee disbursement and utilisation of aid and grants to the police from national and international agencies, he added.

Deputy Senate President, Senator Ike Ekweremadu, however argued that the allocation of 0.5 per cent from the total revenue accruing to the federation account, to the fund, is in contrary to section 162 of the 1999 Constitution.

Such provision, he said, would therefore require an amendment to the constitution.

Ekweremadu instead, harped on the decentralisation of the police to allow for state police, for better service delivery.

The position of the Deputy Senate President on state police was opposed by Senator Adamu Aliero who said the main challenge of the police is funding.

He also argued that the constitution has to be amended to provide for 0.5 per cent revenue allocation to the fund.

The bill was referred to the Senate Committees on Police, Judiciary, Human rights and Legal Matters for further legislative duties

Presiding, Senate President Bukola Saraki urged the relevant committees to ensure the full involvement of states and local government at the public hearing on the bill.

“Whatever we want to do to address the problem must be within the constitution,” Saraki said.

http://investorsking.com/bill-recommends-n540bn-annually-police/ mynd44

Coca-Cola Nigeria will invest $600 million by 2020 to boost sales, in line with a global strategy to extend the product range beyond its soft drinks.

The unit of the Atlanta-based beverage maker plans to expand its offering of drinks to include flavored and condensed milk, iced tea and bottled water to meet demand in Africa’s most populous country.

Its President, West Africa operation, Peter Njonjo spoke in an interview in Lagos, said: “Our objective is to provide whatever beverages you need across your life stages.”

The money is part of a pledge by Coca-Cola to invest $17 billion in Africa by 2020.

Its Global Chief Executive Officer James Quincey has said the company needs to grow beyond its biggest brand and has called for the soda giant to become a “total beverage company,” being less reliant on carbonated soft drinks.

Last year, Coca-Cola bought a 40 per cent stake in Nigerian juice and dairy company Chi Ltd. for $240 million and said at the time it intended to take total control within three years.

Coca-Cola has felt the pinch of an economic slump in Nigeria caused by a decline in output and prices of oil, the nation’s main foreign-exchange earner, and dollar shortages. The economy expanded 0.6 per cent in the three months through June, ending five straight quarters of contractions that saw gross domestic product shrink 1.6 per cent in 2016, the first time since 1991.

High inflation increased production costs, while the price of imported goods rose due to the dollar scarcity, just as consumers had less money to spend, Njonjo, 41, said.

The company, which has 3,600 direct employees, 11 bottling plants and 30 distribution depots across Nigeria, isn’t listed in the West African nation and Njonjo declined to share details on production capacity or earnings.

After peaking at 18.7 per cent in January, the inflation rate fell to 16 per cent in August, while food prices have continued to surge. This is “a big issue,” for Coca-Cola, present in Nigeria since 1951, Njonjo said. “As disposable incomes start getting under pressure, expenditure in products like ours start becoming inaccessible to most consumers,” he said.

In response to the challenges in Nigeria, Coca-Cola increased prices, introduced new product-sizes and sought more inputs locally. To reduce its foreign-exchange exposure, the company plans to raise to 75 per cent the share of raw materials produced in Nigeria by 2020, from 70 percent currently, Njonjo said.

http://investorsking.com/coca-cola-nigeria-okays-600m-expansion/

The Senate on Tuesday said the sum of $9 billion had been spent by the federal government to defend the naira.

It expressed worry that only 10 per cent of the N7.4 trillion 2017 budget has so far been implemented barely three months to the end of the year.

Senator Yahaya Abdullahi (APC, Kebbi) who sponsored a motion on stabilising and sustaining post recession growth of the economy, argued that the level of harmony between the fiscal and monetary policies of government remained “very low.”

He expressed frustration over the inadequate funding of the 2017 budget by the executive, fearing it could pull the country back into a recession.

Consequently, the Minister of Budget and National Planning, Senator Udoma Udo Udoma and the Minister of Finance, Mrs. Kemi Adeosun were both summoned to appear in plenary to explain the failure to fund the budget.

The motion was unanimously passed by the upper legislature chamber.

Abdullahi tasked the national economy managers to remain focused and ensure that the current weak growth of a mere 0.55 percent is built upon and increased substantially in the months and years to come.

The Senate however, urged both the fiscal and monetary authorities to come together and harmonise policies with a view to drastically reducing the high interest rate that has adversely affected borrowing for investment by the real sector of the economy.

It called on fiscal authorities to drastically reduce the accumulation of domestic debt in order to free the market for better access by the private sector.

Senator Barau Jibril (APC, Kano State) who seconded the motion asked that the managers of the nation’s economy be put on their toes so that they would not be complacent.

He argued that the failure to release money to fund the budget had become a serious threat to the economy.

Senator Dino Melaye (APC, Kogi West) claimed that “our economic managers are just joggling the economy using ways and means to manipulate it.”

According to him: “If it is true that the foreign reserve has grown from $25 billion to $34 billion, why are we incapacitated in funding the 2017 budget? We must say the truth. We must go back to the drawing board and take key decisions. We must engage in massive production and we must engage in massive spending too. What we have done is not a geniune approach to addressing the problem of the economy and getting outbof recession.”

Senator Biodun Olujumi of the Peoples Democratic Party (PDP) from Ekiti State while noting that Nigeria is only technically out of recession but still languishing in economic quagmire, lamented that barely three months to the end of the year, the 2017 budget had not recorded 10 per cent implementation.

She said the major problem is that the economic managers were yet to develop a viable economic blue print.

http://investorsking.com/9bn-used-fg-defend-naira-says-senate/

Connoisseur:
I understand your point bro.
What I was trying to point out its that referendum is a matter for a constituted government. Fighting it demonstrating on the streets would amount to be termed rebels or 'terrorists' like in our case.
If the entire state in a zone out region are been controlled by the same interests, they can also be able to achieve this feat.

Exactly what I was trying to point out, that the Kurdistan and Iraqi central government also drag it out in a civil war between 2006-2008. It took US intervention to end it in 2008. Thereafter, the Iraqi allow decentralization of power. So ours is not unique, except it drag on for far too long.

Connoisseur:
“Today marks the first phase in a long-term process.”

Referendum is the first phase in a very long term process.
It was not declared by Iraq but by the regional Kurds Government.
Even though Turkey rolled it as null and void no matter the outcome, the deputy Prime Minister of the KRG didn't resort to indulge and name calling rather calling for dialogue to discuss on issues.
This referendum was only achieved because the Kurds were in charge of their regional government.

Because the Iraqi government allows Kurds real federalism, a semi-autonomy to manage its affairs. This also explains why the Iraqi Kurdistan were and still the strongest in combating ISIS so far. Uphold human right of any group of people and see it reciprocate in folds.

The Naira appreciated slightly on Monday after trading at N369 for two weeks.

The local currency gained N3 from N369 it traded last week to close at N366 per U.S. dollar on Monday.

This was after the Central Bank of Nigeria intervened in the foreign exchange market.

The apex bank has been injecting between $250 million and $300 million into the various segments of the foreign exchange market to help support the Naira and boost business activities.

On Monday, the CBN sold another $195 million into the forex market.

Breaking down the disbursement, a total of $100 million was injected into the interbank foreign exchange segment, while the small and medium enterprises and invisible segments were appropriated $50 million and $45 million respectively.

The central bank had earlier threatened to sanction any Deposit Money Bank in breach of its March 3, 2017, directive, which mandates them to open teller points for retail foreign exchange transactions and to have electronic display boards in their branches showing rates of all their currencies.

The Nigerian crude oil, Brent crude, rose to a 26-month high on Monday following a threat by the Turkish government to block Iraqi Kurdistan’s crude shipments through its territory for going through with a controversial referendum.

Brent gained 0.46 percent to $58.70 a barrel, up $8 from $50.73 a barrel recorded a month ago when Hurricanes hit US producers.

The U.S. West Texas Intermediate rose by 0.13 percent this week to $52.31 at 11:11 pm Nigerian time.

http://investorsking.com/naira-gains-marginally-closes-n366/

Brent crude oil on Monday rose to a 26-month high after Turkey threatened to block Kurdish crude oil shipments passing through its territory to punish the Iraqi region for holding an independence referendum.

Brent crude oil advanced $1.64 to 58.50 a barrel at 1:14 pm New York time. While the West Texas Intermediate gained $1.14 to $51.80 a barrel on the New York Mercantile Exchange.

Iraqi Kurds cast their votes in a controversial referendum on Monday as tension between the Iraqi government and the largest ethnic minority in Iraq deepened. The regional government of Kurdish people known as Kurdistan Region Government, KRG, said the referendum will give it a mandate to achieve independence from Iraq.

Ballot boxes were seen in the oil-rich city of Kirkuk, a city claimed by both the Iraqi government and Kurdistan Region Government.

“It’s pretty clear the Kurds are going to vote for independence and we will have yet another geopolitical hot spot in the Middle East that threatens a significant amount of oil supply,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by telephone. At the same time, “the cooperation and the strong effort by OPEC is registering with the market.”

Turkey and Iran with sizable Kurdish minorities fear a referendum in Iraq might lead to similar occurrence in their countries. Therefore, the two nations threatened to work with the Iraqi central government to isolate the KRG and shut down crude shipments through their territories.

However, the Qubad Talabani, deputy prime minister of the KRG said “It is the beginning of a struggle today in which we hope after a talking process with Iraq, with our neighbors, friends and rivals, to be able to reach our nation’s objectives, be able to fulfill the dream that grew with us since childhood,” he told reporters in comments reported by Kurdish media outlet Rudaw.

“Today marks the first phase in a long-term process.”

Speaking further, he said the referendum should not be seen as a threat to neighbouring nations.

“We just ask our nation a question: do you want to live in an independent state and today our nation will be answering that question. It is not that we are declaring independence tomorrow,” he said.

Turkish President Recep Tayyip Erdogan on Monday called the referendum illegal.

“Northern Iraq is not the living space of only one person or of one tribe, and this should be known,” Erdogan said during remarks in Istanbul. “We consider the referendum, regardless of outcome, null and void. We say it is illegal.”

Israeli Prime Minister Benjamin Netanyahu described the referendum as the legitimate right of the Kurdish people to have their own state. Israel is the only country in the region supporting the referendum.

Futures rose 2.8 percent in London, while the U.S. benchmark jumped to a 4-month high.

http://investorsking.com/brent-crude-oil-jumps-26-month-high-kurdish-holds-referendum/

BOJ Keeps Policy Rates Unchanged Once Again

The Bank of Japan on Thursday left monetary policy rate unchanged amid growing political uncertainties.

The Monetary Policy Committee agreed to maintain the ongoing bond-buying program and leave interest rate at -0.1 percent.

Eight of the members voted to leave rates unchanged while Goushi Kataoka voted for a raise.

http://investorsking.com/boj-keeps-policy-rates-unchanged-once-again/

Naruto87:
took a buy position for GBP/USD ...I feel the current spike by the USD is temporary. hope to make some pips by end of next week.

Am sorry, the GBP spike is temporary for many reasons: Inflation rate is 2.9 percent, higher than 2 percent BOE target and pace of increase of wage growth. Two, the U.K new investment is declining, including housing prices. However, manufacturing and retail sales rose better than projected because of the weak exchange rate and a surge in tourist sales. Therefore, the GBP gain is temporary but bolstered by the pervasive investors' expectation of a rate hike. No economic fundamental to back that assumption except rising inflation rate.

Read this:http://investorsking.com/u-k-consumers-buying-everything-retail-sales-jump-4-month-high/

Multilateral trade between Nigeria and European Union (EU) member states stood at 19.9 billion Euros in 2016, Fillippo Amato, the Union’s Head of Trade and Economic Sector, said yesterday.

According to him, the EU remains the top destination for oil and non-oil exports from Nigeria

“Despite the significant effect of recession on Nigeria’s trade, EU-Nigeria trade remains strong, standing at 19.9 billion Euros in 2016.

The EU official said the success of the Economic Recovery and Growth Plan (ERGP) launched by Nigeria in February depended on active private sector participation.

“On the other hand, creating jobs that will stimulate the economy and provide sustainable employment, particularly for young people, is crucial both for the present and future of Nigeria,’’ the envoy said.

The sixth EU-Nigeria Business Forum slated for October 5 and 6 in Lagos, with the theme: “Youth as an Engine of Broad-Based Economic Transformation.’’

Amato said the forum would focus on the role of youths in Information and Communication Technology (ICT) and Agriculture, which were key sectors to support the growth and diversification of the Nigeria economy.

“The forum will identify the key role of youths in digital economy and potentials of ICT in cross cutting themes and experiences shared from the EU.

“It will strengthen EU and Nigeria’s business relations through identification of opportunities in the agribusiness space in creating jobs, boosting exports and addressing local food security problems.

“The forum would also identify aspirations of young people, youth organisations and networks in view of the upcoming Africa-EU Summit, he said.

http://investorsking.com/eu-nigeria-trade-hits-19-9-billion-euros/

Fed Leaves Rate Unchanged; Balance Sheet Normalization to Commence in October
The Federal Reserve on Wednesday left interest rate unchanged at 1.25 percent and announced the unwinding of its $4.5 trillion balance sheet.

The apex bank sees one more interest rate hike later this year and projects a temporary disruption of the ongoing progress due to the Hurricanes.

“Hurricanes Harvey, Irma and Maria have devastated many communities, inflicting severe hardship,” the Federal Open Market Committee said in its statement on Wednesday following a two-day meeting in Washington. “Storm-related disruptions and rebuilding will affect economic activity in the near term, but past experience suggests that the storms are unlikely to materially alter the course of the national economy over the medium term.” Read more..

http://investorsking.com/fed-leaves-rate-unchanged-balance-sheet-normalization-commence-october/

themonk:
he is trying to hype the coming fight with kubrat pulev and hopefully his fight with Deontay wilder if wilder beats Luiz ortiz in November.

He doesn't need to hype a sold out fight. Over 70,000 tickets sold so far. While Hugie Furry and Parker are struggling to attract meaningful sales. Kubrat is no contest or why did you think he first refused the fight?

Pulse news lie lie news, Kubrat is no contest. Deontay yes, Luis Ortiz is number two

The Federal Inland Revenue Service on Tuesday said it generated a total of N2.51tn from taxes for the federation between January and August this year.

The Executive Chairman, FIRS, Mr. Tunde Fowler, said this in Abuja at the 20th anniversary lecture and awards of the Finance Correspondents Association of Nigeria.

Out of the amount, he said oil taxes contributed about 65 per cent, while taxes from oil sources contributed the balance.

He added that the agency was able to achieve the revenue collection through innovative ways of tax administration.

Fowler stated that a lot of reforms had been implemented by the service to ensure voluntary compliance with the tax laws.

He said the service had also put in place strategies to increase the amount generated from non-oil taxes.

The FIRS boss stated, “To close the gap in low oil tax revenue caused by the fall in the price of crude oil and the incessant destruction of oil and gas facilities in the South-South region, the service introduced innovative strategies to raise revenue from non- oil sources.

“This has resulted in the collection of a total tax revenue of N2.5tn between January and August, 2017.”

Speaking on the Voluntary Asset and Income Declaration Scheme, which was formally launched in June by Vice President Yemi Osinbajo, Fowler said it was designed to encourage voluntary disclosure of previously undisclosed assets and income for the purpose of payment of all outstanding tax liabilities.

He explained, “The scheme is expected to help expand Nigeria’s tax base and therefore improve the low tax to Gross Domestic Product ratio from the current six per cent to between 10 and 15 per cent.

“It also seeks to curb the use of tax havens for illicit fund flow and tax avoidance.”

He added that the scheme was being implemented across the states in collaboration with the 36 states’ internal revenue services and that of the Federal Capital Territory.

http://investorsking.com/firs-generates-n2-5tn-taxes-eight-months/

The Central Bank of Nigeria on Monday threatened to sanction any Deposit Money Bank found in breach of its earlier directive of March 3, 2017 instructing them to, among other things, open teller points for retail forex transactions and to have electronic display boards in all their branches, showing rates of all trading currencies.

This is even as the apex bank sustained its intervention in the various sectors of the inter-bank foreign exchange market with the injection of $545m.

A circular issued by the CBN warned that it would mete out stiff regulatory sanctions to banks that failed to comply fully with the directive by October 13, 2017.

The circular, signed by the Director, Banking Supervision, CBN, Ahmad Abdullahi, stressed that the apex bank would bar errant DMBs from all future CBN foreign exchange interventions.

The CBN had in March directed banks and authorised dealers to open teller points for retail forex transactions (PTA/BTA and SME), including buying and selling, in all locations in order to ensure access to foreign exchange by their customers and other users without any hindrance.

The March circular also directed the DMBs to have electronic display boards in all their branches, showing rates of all trading currencies, which it urged customers to insist on in processing their foreign exchange transactions and the SME window.

While noting that the objective was aimed at creating awareness among members of the public regarding the availability of such facilities in branches of the banks at clearly disclosed prices, the CBN frowned on the banks for not fully complying with its directives.

Accordingly, the CBN has given the errant banks a four-week period, expiring on October 13, 2017, to fully comply with its directives or face regulatory sanctions, which it noted would include but not limited to being barred from all future foreign exchange interventions by the apex bank.

Giving a breakdown of the bank’s latest forex injection, the Acting Director, Corporate Communications, CBN, Isaac Okorafor, stated that the retail Secondary Market Intervention Sales received the largest intervention of $285m.

Other components of the released figures include the $100m offered for wholesale SMIS, $90m for the SMEs window and $70m for ‘invisibles’ such as Basic Travel Allowances, tuition fees and medical payments.

According to Okorafor, the amount released underscored the CBN’s commitment to ensure a liquid interbank foreign exchange market, where all genuine requests will be met in line with extant forex guidelines.

The CBN spokesperson expressed optimism that with the accretion to the nation’s foreign reserves, the bank would continue to fulfil its mandate of safeguarding the international value of the legal tender, adding that the management remained optimistic about achieving a convergence between the forex rates at both the inter-bank and Bureau De Change segments.

http://investorsking.com/cbn-punish-banks-forex-infractions/

India has approached Nigeria to supply it with $1billion (about N367 billion) worth of Pulse Beans.

The Director, Agricultural Business, Processing and Marketing, Ministry of Agriculture and Rural Development, Azeez Olumuyiwa, made this revelation at a sensitisation workshop on agriculture held for officers of the Nigerian Air Force (NAF).

He said that the offer was tabled by the Indian Ambassador to Nigeria, Nagabushana Reddy, at a parley with Minister of Agriculture and Rural Development, Chief Audu Ogbeh.

“The Indian ambassador said Pulse Beans is a food variety consumed four to five times daily by Indians. He has offered to buy $1billion worth of the products from Nigeria if we can produce it,” Azeez said.

According to him, India, the world’s second most populous nation, required 27 million metric tonnes of pulse beans. Nigeria’s current production capacity for the produce is about 47 million metric tonnes.

Pulse Beans is a good source of iron and is mainly grown in Bauchi, Bornu States as well as in Shaki, Oyo State.

The federal government has also admitted unease at China’s plan to begin to use bio-ethanol gasoline across the country by 2020.

The use of bio-fuel, seen as an alternative to fossil energy, is discomfiting for Nigeria as China is one of the major buyers of her crude oil.

Rather than continue to import fuel, China wants to focus on bio-ethanol gasoline production which is a derivative sourced from sugarcane and corn.

Ogbeh, who revealed government’s mood on the development, also stressed that two months ago, the United Kingdom, France, Germany, India, Norway and the Netherlands have indicated plans to ban fuel-run cars in about two decades, to reduce air pollution and save fossil fuel energy.

“It is not a particularly soothing news for us because with this development, there will be less demand for oil and gas. By 2030, all these countries will be using electric cars. The only way to prepare us from the revenue that will no longer be available from oil is by focusing on agriculture,” Ogbeh said in a speech read by his Special Assistant, Winifred Ochinyabo.

The minister said that only 44 per cent of Nigeria’s 79 million hectare of arable land was currently utilised, while the country requires six million metric tonnes of rice per annual to feed its large population.

The agricultural workshop was held for the NAF officers to encourage them to embrace farming after retirement.

The programme covered orientation on distribution of inputs materials, warehousing, processing of food, livestock farming, bio-fuel production and running of agric extension work. The Chief of Air Staff, Air Marshall Sadique Abubakar, was represented at the workshop by NAF Chief of Administration, AVM Lawal Alao.

http://investorsking.com/india-offers-buy-n367bn-pulse-beans-nigeria/

If there is anything to be taken away from the current economic recession, it is the fact that the Nigerian economy has been thriving on proceeds from loots, embezzlements and all kinds of criminal activities. It is also obvious that the 6-7 percent economic growth rates recorded during the past administrations were bubbles created by oil boom but sold to the Nigerian people as a sustainable economic expansion.

For instance, when oil price was $107 a barrel, a total of $29 billion out of the $55 billion that was generated in 2011 made it into the foreign reserves. Whereas the current administration has been able to save $33 billion with oil prices averaging $45 a barrel in the last 12-month. Even with crude oil hitting a 13-year low of $26 barrel in February 2016.

The question is, why wasn’t recession during the previous administration even though the foreign reserves was mere $29 billion? The answer is simple, the bulk of what wasn’t saved find its way into the economy through lavish spending, undisclosed investments and bribery, which in-turn help serviced the economy with just enough forex and bolstered consumer spending through loot-sustained manufacturing sector.

Similarly, on JP Morgan bond listing and positive ratings, the Nigerian economy was evaluated based on its oil revenue generation and not economic fundamentals. In 2013, when Nigeria was listed on emerging bond market index, the unemployment rate was averaging 9.76 percent, while inflation rate stood at 8.5 percent, the lowest in 5 years and still new job creation was weak, meaning the decision was solely based on oil revenue without a futuristic growth plan. Hence, the reason the country was delisted after global oil prices plunged by 70 percent and the refusal of the current administration to devalue the Naira to accommodate the fall in foreign revenues.

Accordingly, the banking and oil and gas sectors that were built on proceeds from loot and poor governance hit a rock bottom but not without dragging the Nigerian Stock Exchange market with it. That was another market driven by bogus sentiment. However, it was the global oil glut that burst the artificial bubbles and exposed the nation for what it truly is.

While plunged in revenue started the economic recession, it was loot that couldn’t find its way into the economy due to the ongoing war on corruption that worsens the situation as majority of the fund linked to a series of accused facing trials were in U.S. dollars. Experts like Sharafadeen Tella, an economist has blamed the booming parallel market on their activities, the very reason consumer prices are at a record high and consumer spending and new job creation plummeted.

However, despite all these shortcomings the present administration failed to formulate an appropriate policy to stimulate the economy and curtail high unemployment rate. For instance, when IMF and economic experts advised the federal government to devalue the Naira, they refused. Until they realized that the external reserves couldn’t sustain the growing forex demands before introducing Forex Flexibility Policy on June 20, 2016 — three days to Brexit Referendum. A period when global risk and uncertainty were at the highest since 2009 economic recession. Therefore, the policy failed as global investors were skeptical of surged in emerging market risks.

Realizing the danger of low capital importation and forex revenue on the economy, the Central Bank of Nigeria hiked interest rate by 200 basis points from 12 percent to 14 percent not only to curb advancing inflation rate as announced by the apex bank but also to lure foreign investors to the capital market to supplement oil revenue. This further stressed businesses that were already struggling to meet financial obligations and forced a lot out of business following their inability to access cheap loans or repay previous ones.

Finally, while the recent surge in global oil prices is fueling economic recovery, it will be in futility if the nation fails to successfully diversify the economy and transform from import dependent economy to both export and domestic-product consuming economy. One, it is unlikely that global oil prices will see the days of $115 a barrel due to the growing campaign against foil fuel and a series of pacts signed by nations to intensify efforts on renewable energy. Two, a mono-product economy like Nigeria may just be having a second chance at perfecting its policy as global oil demand is waning and might get worse over time. Countries like Saudi Arabia are already developing policies to diversify the economy and reduce the effect of oil on their economic performance.

The truth is the most populous black nation, Nigeria is at a critical juncture in history, an opportunity to build a new nation divulge of corruption but economically viable and in sync with the rest of the world or a total disintegration of the entire nation as failure to build an inclusive government as opposed to the conventional centralized government will further aggravate the aggrieved minority clamoring for change across the country and worsen long-term business outlook of the nation.

http://investorsking.com/nigeria-a-nation-that-thrives-on-loots/ mynd44

The Naira depreciated at the parallel market despite the Central Bank of Nigeria $250 million intervention on Monday.

The local currency declined to N367 against the US dollar on Wednesday, down from N365 a US dollar recorded a week ago.

Central bank has managed to keep the Naira relatively stable in the past few months, trading between N365 – N370 against the US dollar. Thanks to its intermittent interventions.

So far, the apex bank has injected about $1 billion in the last two weeks to support the forex market and boost economic activities.

The bank’s Acting Director in charge of Corporate Communications, Isaac Okorafor, attributed the second quarter economic growth to the CBN intermittent interventions and efforts at ensuring businesses access forex at CBN stipulated rate.

He further stated that the timely execution and settlement of eligible contracts as well as surge in forex liquidity aided the real sector and bolstered industrial capacities that revamped the economy.

However, experts believe surged in the oil production and fairly stable global oil prices boosted the economy in the second quarter.

For instance, “While the non-oil (0.45%), manufacturing (0.64%), and agricultural (3.01%) sectors sustained growth in the second quarter, they expanded at a slower pace than preceding quarters. However, oil sector offset that shortfall by rebounding from -15.40 percent recorded in the first quarter to grow at 1.64 percent in the second quarter. Another indication that the economy is still crude oil driven,” said Samed Olukoya, a foreign exchange research analyst at Investors King Ltd.

The economy expanded by 0.55 percent in the quarter, up from -0.91 percent recorded in the preceding quarter.

http://investorsking.com/naira-depreciates-n367-us-dollar/

Truth234:
Forex Weekly Outlook September 11-15

The US dollar plunged against its counterparts last week following increased Hurricane damage and North Korea missile threat. These uncertainties weighed on economic activities and plunged new job creation. The labour market added fewer jobs, 156,000, in August than expected, below the 180,000 jobs projected by economists and 189,000 recorded in July.

Also, while the second quarter economic growth was revised up to 3 percent from 2.6 percent previously reported, wage growth remained lackluster, rising just 0.1 percent in August. Another reason the markets doubt the Fed will raise rates anymore this year, especially with the US economic activities expected to be impacted by the Hurricane damage in the third and fourth quarters. Hence, the reason the odds dropped to 25 percent from 50 percent last week.

However, the services sector sustained growth, factory activities and private businesses added more jobs. Indicating the economy remains healthy, but surged in uncertainties is weighing on the overall outlook.

This week, GBPAUD, EURCAD, EURGBP, NZDJPY and GBPJPY top my list. Analysis on the website

http://investorsking.com/forex-weekly-outlook-september-11-15/

If you follow this analysis your EURCAD, GBPAUD should be in profits with EURGBP target met for the week.

For better understanding of GBP outlook read this

http://investorsking.com/u-k-inflation-advances-to-2-9-percent-in-august/

Chinese policy makers are planning to halt Bitcoin trading across the nation.

The once thriving industry of commercial trading for cryptocurrencies first came under the radar in January, when the People’s Bank of China, PBOC, institutes cashout flow measures to curb excessive capital flight amid global uncertainties.

However, the record surged in prices of cryptocurrencies prompted the apex bank to outright ban trading of the virtual currencies as Chinese people are reportedly using the asset to bet against the Yuan.

According to report, the PBOC has drafted instructions to ban Chinese platforms from providing virtual currency trading services in China. The largest virtual currency trading nation.

“People are still waiting for official word from the regulator,” said Arthur Hayes, chief executive of crypto-currency trading platform BitMEX, adding that the relatively subdued fall in the bitcoin price illustrated how opinion in the community towards the Caixin article was divided.”

Experts believed the decision would plunge Bitcoin below $4,000 a coin from the current $4.174.

“I would assume that if China shuts down trading on continuous order books of the large exchanges, the price would drop below $4,000, or the price of the U.S. dollar price of bitcoin would catch up to where it’s trading equivalently in China,” he said.

It should also be recalled that last week China banned Initial Coin Offerings, ICO, a typical fundraising through cryptocurrencies.

Bitcoin declined by 0.88 percent on Monday to trade at $4,174.09.

http://investorsking.com/china-plans-to-shut-bitcoin-exchanges/

Forex Weekly Outlook September 11-15

The US dollar plunged against its counterparts last week following increased Hurricane damage and North Korea missile threat. These uncertainties weighed on economic activities and plunged new job creation. The labour market added fewer jobs, 156,000, in August than expected, below the 180,000 jobs projected by economists and 189,000 recorded in July.

Also, while the second quarter economic growth was revised up to 3 percent from 2.6 percent previously reported, wage growth remained lackluster, rising just 0.1 percent in August. Another reason the markets doubt the Fed will raise rates anymore this year, especially with the US economic activities expected to be impacted by the Hurricane damage in the third and fourth quarters. Hence, the reason the odds dropped to 25 percent from 50 percent last week.

However, the services sector sustained growth, factory activities and private businesses added more jobs. Indicating the economy remains healthy, but surged in uncertainties is weighing on the overall outlook.

This week, GBPAUD, EURCAD, EURGBP, NZDJPY and GBPJPY top my list. Analysis on the website

http://investorsking.com/forex-weekly-outlook-september-11-15/

Importation of vessels to Nigeria has dropped from N774billion ($2.15billion) in the last two years to N319 billion ($885.9million) due to scarcity of foreign exchange (forex).

It was learnt that the Central Bank of Nigeria’s (CBN’s) forex policy has made it difficult to get more vessels into the country from China, United States (U.S.) and South Korea since last year.

Already, the government has reviewed import duties on luxury yachts, boats, tug boats, oil platforms, bulkers and barges from 20 per cent to 70 per cent of the value of the vessels.

Also, it was revealed that lack of forex has made it difficult to import spare parts, which could be used to maintain the old ones rusting on the sea.

Before the forex challenge, the country imported some vessels worth $2.04 billion from the Republic of Korea between 2013 and 2014.

Also, $266.6million worth of vessels were imported from U.S; $405.9million from China; $108million from Netherlands; and $19.45million from Turkey. Also, $28.49million ship were imported France; $14.04million from Indonesia; $12.56million from Romania; $23.4million from Singapore and $17.27million from the United Kingdom.

Investigation revealed that some of the vessels, which were acquired for cabotage, are idle on the Nigerian waters as coastal shipping is now exclusively in the hands of Indians, Greeks and Lebanese.

It was gathered that foreign shipping lines still dominate the country’s coastal trade, while their local counterparts, that acquired loans to purchase vessels had gone bankrupt.

Nigerian Ship Owners Association of Nigeria (NISA) President, Captain Niyi Labinjo, said the Nigerian National Petroleum Corporation (NNPC) had been reluctant to give the Nigerian shipping companies jobs because their ships were too old to safely transport petroleum products to and from larger tankers offshore.

He lamented that some of his ships have been idleas long as nine months without a job.

Labinjo said: “As the sixth largest oil producing and exporting country, with proven crude oil reserves at 37,070 million barrels; and proven natural gas reserves at 5.111 billion cubic metre, coastal shipping is exclusively in the hands of Indians, Greeks and Lebanese. Nigerians are completely out of it.

“Officials of NNPC give many excuses. They say, ‘your ships are leaking’. When it isn’t leaking, they will say, ‘your papers aren’t complete; you don’t have insurance’. When you have everything, ‘your ship is first class, your ship is insured’; they will tell you don’t have enough bollards.”

He stressed that some of the vessels, which could not work in Europe and Asia, where stiff enforcement of regulation of cabotage trade are found, find their way into Nigeria to do business.

“This can be calculated. Nigerians import about 1.8 billion litres of petroleum products every month and that gives you N5.4 billion every month, so, that is what Nigeria is losing monthly,’’ he added.

http://investorsking.com/ship-import-dips-n319b-forex-scarcity/