₦airaland Forum

The nation’s bourse recorded its highest return in over two years on Monday, as the Nigerian Stock Exchange market capitalisation appreciated by N218bn in one session.

At the close of trading on Monday, equities’ capitalisation rose to N11.943tn from N11.725tn recorded last Friday, while the NSE All-Share Index closed at 34,652.52 basis points from 34,020.37 basis points.

A total of 293.750 million shares valued at N3.949bn exchanged hands in 3,712 deals.

Monday’s performance was lifted by gains in Dangote Cement Plc as investors piled into the shares in anticipation of the company’s half-year earnings.

Dangote Cement, which accounts for a third of the total market capitalisation, rose by 2.44 per cent to lift the main share index by 1.86 per cent to a level last seen in May 2015.

Traders said investors were expecting strong half-year performances from listed firms as results start pouring in this month.

Overall, the Nigerian equities market recorded 1.86 per cent gain to settle the year-to-date return at 28.94 per cent. The market breadth closed at equilibrium with 20 gainers and 20 losers.

Transnational Corporation of Nigeria Plc emerged as a major gainer, advancing by 8.05 per cent, to close at N1.61 per share.

Dangote Cement Plc, Julius Berger Nigeria Plc, C & I Leasing Plc and Access Bank Plc’s shares soared by five per cent, 4.96 per cent, 4.92 per cent and 4.46 per cent, accordingly.

On the losers’ table was Aiico Insurance Plc, whose stock declined by five per cent to close at N0.57. Vitafoam Nigeria Plc, Unity Bank Plc and Berger Paints Plc also emerged top losers.

“The gain in the equities market could be attributed to the share price appreciation on some market heavyweights, particularly Dangote Cement, which recorded a five per cent advancement,” analysts at Meristem Securities Limited said in a post.

Performance as measured by the sector indices showed that the NSE industry, NSE banking and the NSE oil/gas indices closed positive, advancing by 2.51 per cent, 1.11 per cent and 0.12 per cent, respectively. However, the NSE food/beverage and insurance indices declined by 0.47 per cent and 0.42 per cent, accordingly.

The Nigerian stock market had seen a largely bearish performance after a sharp fall in crude prices from mid-2014, which resulted in foreign investors exiting the country’s financial markets.

The drop in oil prices also pushed the economy into recession, triggered a currency crisis and forced the Central Bank of Nigeria to introduce controls.

In April, the banking regulator partly lifted some restrictions to allow foreign players to bring in their hard currencies at market-determined rates. The move has spurred equities by more than doubling trading volumes.

The Nigerian equities market had attracted N2.715tn investments as of mid-July owing to the foreign exchange window for investors and exporters introduced by the apex bank on April 21 this year.

Stocks have seen a huge rally across board evident in the soaring NSE market capitalisation of listed equities, the All-Share Index, number of deals, as well as volumes traded vis-a-vis their values.

The NSE market capitalisation had appreciated by 31.04 per cent between April 20 (last trading day before the window’s opening) and July 14, from N8.748tn to N11.463tn.

http://investorsking.com/stock-market-hits-two-year-high-soars-n218bn/

LordAdam16:
@Truth234,

https://www.reuters.com/article/us-russia-opec-meeting-libya-idUSKBN1A90SB

Told you OPEC would decide to cap Nigerian production.

-Lord

Stop mentioning me, I watched the meeting update live and I told you that Nigeria production level has not reached 2 mbpd. The OPEC framework for Nigeria production cap is 1.8mbpd, while Libya is 1.25mbpd. Until we reach that target we won't cut production like I said previously. Saudi Minister of Energy and Industry Khalid Al-Falih himself said OPEC and non-OPEC members are happy the two nations, Nigeria and Libya, are gradually increasing their production level but they need to see if the current level is sustainable.

Our very own Mohammed Barkinado, OPEC secretary general said we will cut when we attained 1.8 mbpd production level. It simply means we are currently below that level. Exactly what I told you and you disagreed. Like I said before, we will not cut until that level is reached. See below:

Truth234:
You like to run your mouth, who told you we've crossed 2mbpd? Current crude oil production level is below 1.8 mbpd, the 2.025mbpd quoted includes condensate.

Even OPEC's June output rose just 260,000 barrels per day, half of which came from both Nigeria and Libya. So where is the 250,000 barrel? I repeat Nigeria is not capping production, until Afrocardo pipeline reaches optimal level of 250,000 barrel per day in months to come.

The meeting is to discuss way forward ahead of November meeting. Ibe is not attending because of a previous commitment, according to the Kuwait Oil Minister Essam al-Marzouq.

LordAdam16:
Was it not Ibe that said Nigeria would voluntarily put a limit when production hits 1.8m?

Talk is cheap.

Now that production has crossed 2m, he is silent.

Why should Saudi Arabia and Iraq cut their oil production while we add over 250k barrels over the reasonable 1.8mbpd point?

Selfishness!

Anyway, Saudi increased production by 50k barrels last month, and Iraq will not even consider that silly request. Putin will defo laugh it off.

Russia is already saying no extra cuts from countries already making cuts, so Nigeria and Libya should do the needful and stop whining. Every country has a budget to balance.

-Lord

https://www.bloomberg.com/news/articles/2017-07-24/opec-signals-no-big-changes-to-supply-deal-at-meeting-in-russia

http://www.marketwatch.com/story/oil-prices-steady-with-all-eyes-on-opec-meeting-2017-07-24

http://investorsking.com/global-oil-demand-remains-healthy-opec/

By the way, Saudi has announced it will cap its exports at 6.6 mbpd in August.

Efforts by the federal government to diversify the economy and generate foreign exchange from other sources might have started yielding the needed results as the trade statistics report by the National Bureau of Statistics (NBS), revealed that the exportation of agricultural goods grew by 82 per cent in the first quarter of 2017.

The sectoral breakdown showed that proceeds from agricultural products stood at $340 million (N105.06 billion) in the first quarter of 2017, representing 39.5 per cent of total non-oil export proceeds. Food products, manufactured products and industrial goods counted for 10.8 per cent, 16.9 per cent and 10.9 per cent respectively.

However, the latest quarterly Economic Report from the Central Bank of Nigeria (CBN) puts non-oil exports provisionally at $87 million (N26.88) in Q1 2017, indicating a substantial rise of 86 per cent Quarter-on-Quarter ( q/q). However, they declined by 15 per cent Year-on-Year (y/y).

Analysts believe the q/q surge was attributed to a significant increase in receipts from food and agricultural products.

They however warned that the federal government should urgently address increasing drive by farmers to export their produce, a situation, they stressed will fuel the rise in food inflation.

According to analysts at FBN Quest, “We note that food inflation has risen steadily over the past few months (January – March 2017 inclusive). One likely reason, although anecdotal at this stage, is the increasing preference of farmers to export their produce as opposed to supplying domestically. In our view, this preference can be linked to the fact that the currency has depreciated by 56 per cent from N196/US$ on the interbank market over the period in question (i.e. Q1 2017 vs Q1 2016).”

They added: “The Federal Government of Nigeria (FGN) has announced its intention to boost export activities through payment of the export expansion grant (EEG). The EEG was suspended in 2014. However, N20bn was set aside for its revival in this year’s budget.

“The Manufacturers Association of Nigeria (MAN), following discussions with the authorities, thinks that the new grant may have lower rates than previously, be robustly designed to prevent abuse by applicants and reward exporters for value addition.”

The Minister of Agriculture, Audu Ogbe recently formally flagged off the export of yam with 72 tons of the produce exported to Europe.

Speaking during the flag off of the project at the Lilypond Container Terminal, Ijora, Lagos, Ogbe said he considers the event another giant leap in the country’s quest to grow the agricultural sector towards the diversification of the nation’s revenue base and conservation of foreign exchange by limiting citizen’s appetite for imported food.

“The 72 tonnes is going out in three containers but this is just the beginning; more will follow. There is demand in China, everywhere where Nigerians are and until we stabilise the economy through serious work like this, there will never be peace and stability,” he said.

While emphasising the need for farmers to ensure quality control, Ogbe appealed to exporters to ensure that their produce meet global standard as Nigeria can no longer afford the embarrassment of product rejection.

He said there is high demand for Nigerian yam once international standards are met; adding the federal government was working at taking yam production, processing and marketing in Nigeria to the level of that obtains in Ghana.

According to him, Ghana yam export trade employs over one million people with the country currently accounting for 94 percent of the total yam export in West Africa and covering markets in Canada, UK and Europe.

The minister also assured that the yam export drive would not lead to the product’s scarcity at home.

“I am aware that since we made the announcement that we are going to export yams, Nigerians have begun to express anxiety. I have seen people say we are hungry and you are exporting our yam. Quite frankly, I appreciate the point they are making but the truth is that the yams we export will in no way diminish the quantity at home. Most of the yams we produce rot away.

“New yam will be here in two weeks, the old stock is still there and people in the markets are getting worried but the new yam will come and nobody will touch the old one. We actually overproduce food here,” he said.

http://investorsking.com/agric-leads-non-oil-export-proceeds-with-n105-06bn-in-first-quarter/

The British government has said it will invest in Nigeria’s oil pipeline infrastructure, renewable energy, as well as gas and power.

The British High Commissioner to Nigeria, Mr. Paul Arkwright, disclosed this when the Group General Manager, Group Public Affairs Division, Nigerian National Petroleum Corporation, Mr. Ndu Ughamadu, paid a courtesy visit to the Chancery of the British High Commission in Abuja.

Arkwright said Britain had genuine investment interests in the downstream, midstream and upstream sectors of the Nigerian oil and gas industry.

He noted that the British Department for International Trade was ready to liaise with the Federal Government to invest in Nigeria.

The high commissioner also urged the Federal Government and the NNPC to organise a roadshow in London to create awareness on the possible investment opportunities available in the Nigerian oil and gas sector.

Arkwright said many British investors had funds, which they were willing to invest in Nigeria, stressing, however, that the process of obtaining Nigerian visa in the UK was cumbersome with three different levels of visa procurement fees as well as Nigeria’s postal order system.

In his response, Ughamadu, on behalf of the Group Managing Director of the corporation, Dr. Maikanti Baru, condoled with the British government over the recent terror attacks on the UK.

He assured the high commissioner and his team in Nigeria that the corporation would sustain the cordial relations between both countries.

http://investorsking.com/britain-invest-nigerias-oil-pipelines-others/

Justice A. T. Mohammed of The Federal High Court, Abeokuta Division, Ogun State, has granted an injunction against Gateway Portland Cement Limited and Dr. Olumuyiwa Odegbami on the application of the Asset Management Corporation of Nigeria.

Consequent upon the court order, AMCON said its receiver, Mr. Charles Adeogun-Phillips, had formally taken possession of Gateway Portland Cement factories and facilities located in Abeokuta and Mowe areas of Ogun State over a debt profile of nearly N3bn, according to a statement by the corporation on Friday.

The debt has been a subject of litigation for some time now.

The court restrained the firm and its promoters, their agents and privies from moving into the company, withdrawing money from or with any bank or financial institutions that hitherto did business with it pending the hearing and determination of the suit to be filed by the applicants for the recovery of the outstanding debts.

The order also restrained Gateway Portland Cement and the promoters by themselves, their agents, servants and, or their privies from interfering with or otherwise obstructing or frustrating the AMCON-appointed receiver in performing his duties.

Gateway Portland Cement and its promoters were directed to deliver to the receiver manager all the charged assets of the firm in their possession forthwith.

To ensure that the court order is carried out as directed, Justice Mohammed directed the Inspector General of Police, the Assistant Inspectors General of Police and Commissioners of Police in charge of any location where the pledged assets of the firm might be found to assist the bailiff and the AMCON receiver, Adeogun-Phillips, in the enforcement of the order.

http://investorsking.com/court-orders-amcon-take-gateway-portland-cement/

The Nigerian National Petroleum Corporation (NNPC) yesterday said the average national daily gas supply to the nation’s power plants has risen by 64 per cent.

The rise in gas to power was contained in the Corporation’s Financial and Operations Report for May this year, according to a statement.

The average natural gas supply to power plants of 729 million standard cubic feet of gas per day (mmscfd) in May this year was 63.74 per cent higher than the daily gas supply to the plants, of 44 6mmscfd, during the same month last year.

The report said the average national daily gas production for May 2017 stood at 242.70billion cubic feet (BCF), or an average of 7,829.11mmscfd, representing a slight increase, compared with April’s gas production of 672mmscfd.

It also stated that NNPC, within the review period, activated plans to build 500million standard cubic feet of gas-per-day metering plant to serve the planned capacity expansion of Egbin Power Plant.

The report, the 22nd edition, like the previous ones, is designed to promote and sustain effective communication with stakeholders.

According to the report, the three refineries in Port Harcourt, Warri and Kaduna were operational in May, with a minimum of six million litres of petrol and a similar quantity of Automotive Gas Oil, also known as diesel, loaded out from the refineries daily.

The three NNPC refineries have a combined nameplate capacity of 445,000 barrels of crude oil per stream dayly.

The report indicated that the rehabilitation of the refineries would restore their nameplate capacities.

Diesel price, the report also noted, witnessed a nationwide crash by as much as 42 per cent following strategic intervention by the Corporation, to sustain supply of diesel and avoid the first quarter 2017 unpleasant experience when retail price of AGO shot to an all-time high of N300 per litre.

The intervention pushed the product’s retail prices, as at May 2017 to rally betweenN175 and N200 across the country.

Another highpoint of the May report, is that there was a decline in the incidents of oil pipeline breaks which had, in recent time, witnessed a steady reduction through the months, following the sustained community/stakeholders’ engagement initiative.

The report said the number of pipeline breaks recorded within the period stood at 55, which was an improvement compared to 82 vandalised points recorded in April 2017. This figure represents about 33 per cent reduction relative to the previous months and also a remarkable improvement to corresponding period of May 2016 which recorded 260 cases.

http://investorsking.com/nnpc-increases-gas-power-64/ mynd44

The aggregate foreign exchange (forex) inflow into the Nigerian economy in the first quarter of 2017 has been estimated at US$15 billion.

This, however, represented a decline of 9.2 per cent below the level in the fourth quarter of 2016, but showed an increase of 1.4 per cent over the level at the end of the corresponding period of 2016.

The Central Bank of Nigeria (CBN) disclosed this in its first quarter 2017 economic report that was posted on its website.

It explained that the development was driven by the fall in receipts from both the central bank and autonomous sources. Oil sector receipts, which accounted for 15.9 per cent of the total, stood at US$2.38 billion, compared with US$1.97 billion and US$2.48 billion, recorded in the fourth quarter of 2016 and the corresponding period of 2016, respectively.

However, non-oil public sector inflow, at US$4.21 billion (28.1 per cent of the total), fell by 11.6 per cent, compared with the level at the end of the fourth quarter of 2016, but showed an increase of 188.4 per cent above the level at the end of the corresponding period of 2016. Also, autonomous inflow, which accounted for 56.1 per cent of the total, fell by 14.1 per cent, compared with the level in the fourth quarter of 2016.

The report indicated that the performance of the external sector in the first quarter of 2017, improved with an overall balance of payments surplus equivalent to 3.1 per cent of gross domestic product (GDP), compared with 0.6 per cent in the corresponding period of 2016.

This was influenced by improvements in the price of crude oil following the decision by the Organisationof Petroleum Exporting Countries (OPEC) to curtail supply. Consequently, provisional data showed that foreign exchange inflow and ouflow through the CBN in the first quarter of 2017 were US$6.60 billion and US$3.65 billion, respectively. This resulted in a net inflow of US$2.95 billion, in contrast to the net outflow of US$0.54 billion in the fourth quarter of 2016. Inflow declined by 1.9 per cent relative to the level at the end of the fourth quarter of 2016, but rose by 67.3 per cent relative to the level in the corresponding period of 2016.

http://investorsking.com/nigerias-forex-inflow-hits-15bn-first-quarter/

The United Bank for Africa Plc has announced an immediate upward review of the monthly international spend limit on its debit and prepaid naira cards from $100 to $2,000.

The upward review, which represents a marked increase by 1,900 per cent, allows customers to withdraw up to $2,000 per month as against $100 which was obtainable previously.

Similarly, First Bank of Nigeria Limited has raised the limits on international transactions on naira payment cards to $1,100 monthly across its platforms.

The bank said customers could now enjoy increased access to funds using the FirstBank Naira Master Card, naira prepaid and naira credit cards for international payments.

First Bank, however, said customers in the United Arab Emirates and China had a monthly limit of $250 for the Point of Sale and online transactions.

A statement by First Bank read in part, “The new international spend limits is coming on the heels of increased availability of foreign exchange in the economy. First Bank remains committed to meeting the banking and financing needs of its customers, providing world class services and expertise while ensuring the security of customer funds.”

Meanwhile, UBA said the increase had been done in response to the growing demand for higher limits by customers making international transactions.

UBA said it was also an indication of the improved confidence in the Nigerian economy as shown by increased foreign exchange in the financial system.

The Executive Director, Operations and Technology, UBA, Mr. Chukwuma Nweke, who announced the review, explained that the move was intended to enable more convenient and seamless transactions when making purchases outside the country.

http://investorsking.com/debit-card-uba-first-bank-raise-international-spending-limits/

Fidelity Bank Plc on Tuesday became the third Nigerian bank to raise the monthly international spend limit on its naira Visa credit and debit card transactions to $1,000.

The move, which clearly was an indication of the improved dollar liquidity in the economy, is also expected to strengthen investors’ confidence.

According to Fidelity Bank yesterday, the initiative was in response to customer needs and the improved foreign exchange liquidity in the banking system, a fall-out of various economic recovery measures put in place by the Central Bank of Nigeria (CBN).

“We are pleased to remove the restrictions on International transactions on Fidelity Visa Naira Credit and Debit Cards. It was important for us to take advantage of the slight ease in sourcing foreign exchange to do this in order meet with the yearnings of our teeming customers,” Fidelity Bank Chief Executive Officer, Nnamdi Okonkwo said.

Specifically, the bank in a message to customers said international transactions on Fidelity Visa Naira Credit and Debit Cards will be subject to the following limits: “Visa Naira Debit Cards (POS/Web only) equivalent of $1000 only; Visa Naira Credit Cards (ATM/POS/Web) equivalent of $1,000 only.”

Fidelity Bank explained that the window of opportunity with international transactions would only be available to Visa naira credit and debit cards and reminded customers that charges on credit cards are dependent on the acquirer and ATM used whilst POS/Web purchases attract no charges.

“We encourage customers to always insist on being billed in the currency of the country in which the purchases are made especially, POS payments in order to avoid attracting additional charges,” Okonkwo further stated.

http://investorsking.com/fidelity-bank-raises-international-spend-limit-naira-cards/

Economists at PricewaterhouseCoopers (PwC) have projected that Nigeria could emerge the 14th largest economy in the world by 2050 with Gross domestic product (GDP) of $3.3 trillion.

PwC made this projection in a special report titled: ‘Boosting Investments: Nigeria’s path to growth’, obtained on Monday. The company said to deliver sustainable growth with per capita gains, Nigeria needs to aggressively boost domestic and foreign investments over the next decade.

According to PwC, while nation’s economy fell into a recession for the first time since 1991 last year, recent string of economic releases suggest that the economy might have bottomed out with fragile signs of recovery, driven largely by improved liquidity in the foreign exchange markets and policy measures to improve the business environment.

The company, which said foreign exchange regime remains the key to stimulating investment, explained that the report which examined Nigeria’s Economic Recovery and Growth Plan (ERGP) identified two critical factors for unlocking private investment-improving the business environment, and having a sustainable foreign exchange regime.

“We note that the country has made some progress towards improving the business environment through several reforms, including a 60-day action plan implemented over the past six months. However, more needs to be done, in particular, with respect to paying taxes, getting access to electricity and other infrastructure, which are critical to bolster investment,” PwC said.

The report added that while foreign exchange liquidity has improved in recent times as the Central Bank of Nigeria (CBN) allows for more flexibility in the foreign exchange market, the existence of multiple exchange rates with significant variances poses a risk to investment.

“In our view, a market-determined exchange rate, where all rates are harmonised, is fundamental to boosting domestic and foreign investments,” PwC said.

Speaking on impact of exchange rate flexibility on investment and economic growth, PwC said a number of academic literature have shown the positive impact of exchange rate flexibility on investment and economic growth.

“Broadly, it has been argued that a flexible exchange rate regime has a positive effect on investment and economic growth compared to a fixed or intermediate regime. Ihnatov and Capraru (2012) using data from 16 Central and Eastern European Countries find that flexible exchange rate regimes have a superior positive effect on growth in per-capita GDP relative to intermediate and 4 fixed regimes.

Levy-Yeyati and Federico Sturzenegger (2003) studied the relationship between exchange rate regimes and economic growth using a sample of 183 countries, and finds that median annual real GDP per capita growth for floaters was 0.7 percentage points higher than pegs. For developing countries, less flexible exchange rate regimes were associated with slower growth, as well as with greater 5 output fluctuations.

“ Eregha (2017) also studied the impact of exchange rate regime on FDI in the West African Monetary Zone using data for the period of 1980 t0 2014 and finds that exchange rate uncertainty suppressed FDI inflows to the selected countries, and the magnitude of the impact was significantly high,” the report said.

http://investorsking.com/nigerias-gdp-hit-3-3-trillion-2050-says-pwc/

Business activities were on Tuesday paralysed at the headquarters of the Corporate Affairs Commission following an industrial action by members of staff of the commission.

The industrial action led to the closure of the premises of the commission in Abuja thus preventing members of staff as well as the general public from conducting any time of business transaction.

The workers are protesting the non-payment of allowances as well as poor welfare condition

Our correspondent who visited the commission observed that posters with various inscriptions were displayed at the gate of the commission.

Details later...

http://investorsking.com/breaking-cac-workers-begin-strike/

The Central Bank of Nigeria on Monday intervened once again in the foreign exchange Market to boost forex liquidity.

According to the Acting Director, Corporate Communications of the Central Bank, Isaac Okorafor, a total of $195 million dollars was offered.

The acting director said Small and Medium Enterprises segment received $50 million, while the wholesale segment was appropriated $100 million.

The remaining $45 million was allocated to the tuition fees, medical payments and Basic Travel Allowance window.

Okorafor reaffirmed the CBN commitment to rates convergence and price stability.

Last week, the apex bank injected a total of $396.8 million in the various segments of the foreign exchange market.

Experts have said the continuous intervention is aiding consumer prices and general price stability in the country.

Speaking on the effectiveness of the policy, Samed Olukoya, a foreign exchange analyst at Investors King Ltd said: “Pace of increase of the inflation rate has declined for five consecutive months due to the CBN measures at ensuring there is substantial forex liquidity to aid economic activities.”

The consumer prices improved to 16.10 percent from about 19 percent in the last quarter of 2016.

The Naira remains fairly stable, exchanging at an average of N364 to a US dollar in the Bureau de Exchange segment of the forex market.

http://investorsking.com/cbn-sells-195m-to-boost-forex-supply/ mynd44

Cost of goods and services in Nigeria continue to moderate in June following the surge in forex liquidity in the country.

The consumer prices which measures inflation rose 16.10 percent year-on-year in June, according to the National Bureau of Statistics report released on Monday. This was 0.15 percent lower than the 16.25 percent recorded in May. Indicating that the continuous gain of the Naira and sustained forex intervention by the Central Bank of Nigeria has continued to cool prices and broaden improvement across key industries.

On a monthly basis, inflation rate increased by 1.58 percent in June, down 0.30 percent from 1.88 percent gain recorded in May. So far, month-on-month inflation has cumulatively risen by 9.28 percent since January.

However, prices of food remain high, rising 19.91 percent in June, up 0.64 percent from 19.27 percent recorded in May. Suggesting continued pressure in food prices.

Since the launched of Investors and Exporters forex window in April, the economy has witnessed a surge in capital importation with the Nigerian equities market alone attracting N2.715 trillion in investments.

This has helped improve forex availability in the country and aid the Naira’s value against the US dollar.

However, some experts have said if OPEC go ahead to request a production cap from Nigeria as widely suggested, the ongoing forex intervention would suffer and so would progress record thus far.

“Production cut would hurt current progress,” said Samed Olukoya, a foreign exchange research analyst at Investors King Ltd. It is unclear if the surge in production level recorded in June can be sustained going forward or a one-time time, therefore, it would be premature to cap production based on a single month data.”

http://investorsking.com/inflation-continues-to-cool-in-june/ mynd44

The market is on a recovery track due to rising global demand, Kuwait’s Organisation of the Petroleum Exporting CountriesGovernor Haitham Al-Ghais told Reuters.

In an effort to eradicate a supply glut, the OPEC is curbing output by 1.2 million barrels per day (bpd) until March 2018, while Russia and other non-OPEC producers are cutting half as much.

But oil prices have fallen more than 15 percent this year due to still-booming supplies and stubbornly high global stocks, which remain way above OPEC targets despite the cut agreement.

A ministerial committee from OPEC and non-OPEC countries, which is headed by Gulf OPEC member Kuwait, meets in Russia on July 24 to discuss compliance with the cuts, from which Nigeria and Libya are exempted due to years of output-sapping unrest.

“All this talk about putting a production cap on Libya and Nigeria is premature,” Al-Ghais said. “Data so far is showing that the real spike in production only happened in June.”

The official added that output had increased on average by between 300,000 and 500,000 bpd from the two countries combined since the start of the supply-cutting agreement in January 2017.

He said representatives from Libya and Nigeria had been invited to a technical OPEC/non-OPEC committee meeting on July 22 ahead of the ministerial gathering, to give presentations on production from both countries.

“We have to look at the sustainability and stability of production from those countries,” said Al-Ghais, who also heads the technical committee. “We need to wait and see more production data before we can make any decision.”

The technical committee could make recommendations on Nigeria and Libya, which the ministerial committee would then review. The latter cannot take production decisions but can make recommendations to OPEC and other participating producers, which are scheduled to meet formally in November.

Al-Ghais said that despite production increases from Libya and Nigeria, there were signs of market rebalancing including U.S. government data showing a large drop in stockpiles.

“We feel that the market is on the right way of correcting itself,” he said. “Demand will pick up and we expect to see stronger demand in the third quarter.”

http://investorsking.com/premature-opec-cap-libya-nigeria-oil-output-kuwait/ mynd44

Nigerians spent N6.7 trillion on importation of consumables and household items in 2015, Minister of State for Industry, Trade and Investment, Mrs. Aisha Abubakar stated yesterday.

She spoke in Kano at a stakeholders’ meeting on “Buy Made-in- Nigeria Products” by the Ministry in collaboration with the Federal Ministry of Information and Culture.

Abubakar declared the staggering amount being spent on importation of goods as unacceptable, saying it is responsible for the campaign to change perception of Nigerians towards patronising locally made products.

She said: “In 2015 alone, over N6.7 trillion was spent on the importation of goods and services for which the nation can produce locally.

“Also, N1.09 trillion was reportedly spent on imported foods and drinks; N1.5 trillion on spare-parts; N123.01 billion on shoes and clothes and N399 billion on household items. Imagine if this had been spent on our local industries.”

Abubakar informed government’s determination to encourage the patronage of Made-in-Nigeria products by Ministries, Departments and Agencies made Acting President Yemi Osinbajo sign the Executive Order 3, aimed at ensuring that 40 per cent goods procured by government agencies are made locally.

http://investorsking.com/nigerians-spent-n6-7-trillion-imported-consumables-2015/

The US Department of Justice has gone to court seeking the forfeiture and recovery of approximately $144 million of Nigerian assets allegedly laundered in and through the United States.

The department filed a complaint alleging that Nigerian businessmen, Kolawole Akanni Aluko and Olajide Omokore, conspired with others to pay bribes to former Minister for Petroleum Resources, Diezani Alison-Madueke.

In return for these improper benefits, Alison-Madueke allegedly used her influence to steer lucrative oil contracts to companies owned by Aluko and Omokore.

The complainants alleged that the proceeds of the illicitly awarded contracts were subsequently laundered in and through the US. and used to purchase various assets subject to seizure and forfeiture, including a $50 million condominium located in one of Manhattan’s most expensive buildings – 157 W. 57th Street – and the Galactica Star, an $80 million yacht.

“The United States is not a safe haven for the proceeds of corruption,” Acting Assistant Attorney General Blanco said.

According to the U.S. government, Aluko, Omokore purchased millions of dollars in real estate in and around London for Alison-Madueke and her family members, then renovated and furnished these homes with millions of dollars in furniture, artwork and other luxury items purchased at two Houston-area furniture stores at Alison-Madueke’s directive.

In return, Alison-Madueke allegedly used her influence to direct a subsidiary of the Nigerian National Petroleum Corporation (NNPC) to award Strategic Alliance Agreements (SAAs) to two shell companies created by Aluko and Omokore: Atlantic Energy Drilling Concepts Nigeria Ltd. and Atlantic Energy Brass Development Ltd. (the Atlantic Companies).

Under the SAAs, the Atlantic Companies were required to finance the exploration and production operations of eight on-shore oil and gas blocks. In return for financing these operations, the companies expected to receive a portion of the oil and gas produced.

However, according to the complaint, the Atlantic Companies provided only a fraction of the required financing, or in some instances, failed entirely to provide it. The companies also failed to meet other obligations under the SAAs, including the payment of $120 million entry fee.

Yet they were permitted to lift and sell more than $1.5 billion worth of Nigerian crude oil. The US. government contends that the Atlantic Companies used a series of shell companies and intermediaries to launder a portion of the total proceeds of these arrangements into and through the US.

http://investorsking.com/us-seeks-forfeiture-100m-laundered-diezani/

SolnergyPower:
$1000 daily?

For platinum customers, how many people are platinum customers? And its only POS.

Ecobank Nigeria has announced the availability of its naira-denominated MasterCard for international transactions as well as increased daily limits customers can spend on their payment cards.

As a result, the daily spending limits for international payments on the Point of Sale terminal and online channels increased from $100 to $1,000 for its platinum card customers.

The lender also set $750 and $300 limits for its gold and standard cardholders respectively.

The pan-African bank said it had also enabled $100 daily Automated Teller Machine cash withdrawals on all the card variants.

In a statement on Thursday, the Head, Consumer Banking, Ecobank, Mr. Tunde Kuponiyi, said the bank was conscious of the needs of customers in the summer season and as such, made provisions to cater for the expected high desmands.

He was quoted to have said, “This move is to create an ease and encourage customers of the bank to shop and spend abroad with their Ecobank naira-denominated cards during this summer. The debit card now allows access to their naira account from any part of the world, enabling them to make cash withdrawals as well as carry out web purchases abroad”.

He said, “Further to our earlier communication informing you of the suspension of international transactions on naira-denominated debit cards, we are pleased to inform you that you can now use your naira-denominated Ecobank MasterCard for international transactions.

The debit card now allows you access to your naira account from any part of the world. With it, you can now make cash withdrawals and make the PoS/Web purchases abroad, subject to the limits.”

He explained that customers could get an instant card within two minutes in any Ecobank branch, and that the card was automatically enabled for value-added services and online transactions both locally and abroad.

Kuponiyi clarified that customers of the bank could also use their foreign currency denominated MasterCard debit cards to enjoy spending directly from their domiciliary account.

http://investorsking.com/ecobank-opens-naira-denominated-mastercard-for-international-transactions/ mynd44

The Nigeria Customs Service, Federal Operations Unit, Zone A, Ikeja, said that it recovered unpaid duties amounting to N229.9m between June 13 and July 10.

The announcement was made by the command’s controller, Mohammed Garba, during a media briefing in his office on Wednesday.
Garba, who was posted to the FOU in May, also said that the command recorded a total seizure of smuggled items worth N200.10m between June and July, following its anti-smuggling campaign.

He said, “I am happy to mention some of our achievements in the fight against smuggling. After a series of meetings with my field officers, reviewing our operational strategies to meet up with the current trend of smuggling, we have intercepted contraband with a duty paid value of N200.99m from June 13 to July 10.

“In the same vein, the unit through our interventions recovered N28.95m from duty payments and demand notices on general goods that tried to outsmart our officers at seaports, airport and border stations through wrong classification, transfer of value, and short-change in duty payment.

“The cumulative total of this recovery is N229.95 making it another spectacular breakthrough in anti-smuggling operation under my watch.”

According to the FOU controller, 15 suspects were arrested in connection with 40 different seizures within the period comprising vegetable oil, foreign parboiled rice, frozen poultry, smuggled vehicles, medicaments, used tyres, and other goods.

Garba said that the command intercepted 1,442 cartons of Tramadol 225/120mg in a container along Apapa-Oshodi and Ijebu Ode expressways, adding that the drugs would be handed over to the National Agency for Food and Drug Administration and Control for further investigation.

He added that seven containers whose owners had contravened Customs law by means of false declaration and breach of import prohibition list by trade were also intercepted.

He disclosed that three of the containers carried 5,014 pieces of used tyres, used fridges and used double electric burners, while the remaining ones carried 499 cartons of Eva soap as against poultry incubator allegedly declared in the Single Goods Declaration form by the importer.

On Tuesday, the FOU boss said the command intercepted one DAF Truck with Registration No DAL 543 ZX, carrying 1,200 cartoons of smuggled poultry along Lagos-Ibadan Expressway as well as a container conveying 400 bales of second-hand clothes.

Garba sought for the cooperation of everyone in the fight against smuggling, adding that it could only be won with all hands on deck.

“You will agree with me that the fight against smuggling can only be won if all hands are on deck. The commitment, doggedness, resilience and diligence of the officers and men of the FOU A for foiling the antics of smugglers who used different methods for concealment cannot be over emphasised,” he stated.

http://investorsking.com/customs-recover-n229-9m-unpaid-duties-in-one-month/

LordAdam16:
Was it not Ibe that said Nigeria would voluntarily put a limit when production hits 1.8m?

Talk is cheap.

Now that production has crossed 2m, he is silent.

Why should Saudi Arabia and Iraq cut their oil production while we add over 250k barrels over the reasonable 1.8mbpd point?

Selfishness!

Anyway, Saudi increased production by 50k barrels last month, and Iraq will not even consider that silly request. Putin will defo laugh it off.

Russia is already saying no extra cuts from countries already making cuts, so Nigeria and Libya should do the needful and stop whining. Every country has a budget to balance.

-Lord

You like to run your mouth, who told you we've crossed 2mbpd? Current crude oil production level is below 1.8 mbpd, the 2.025mbpd quoted includes condensate.

Even OPEC's June output rose just 260,000 barrels per day, half of which came from both Nigeria and Libya. So where is the 250,000 barrel? I repeat Nigeria is not capping production, until Afrocardo pipeline reaches optimal level of 250,000 barrel per day in months to come.

The meeting is to discuss way forward ahead of November meeting. Ibe is not attending because of a previous commitment, according to the Kuwait Oil Minister Essam al-Marzouq.

smartty68:
How far CBN? Exchange rates still very high, lift the $100 limits on Naira MasterCard, Bank selling dollars even higher than black market rates! What's happening?

That is something the CBN will have to address but as it is exchange rate will continue to improve as more investors jump on the I&E platform to trade their currencies.

However, the activities of the banks need to be checked, if not most of their third quarter's profit will come from forex like we've seen in the fourth quarter of 2016 and further hurt current progress as looters that don't care about extravagant rates would exploit the system at the expense of the masses.

It is not possible OPEC ask Nigeria to cut, OPEC’s Secretary-General, Mohammad Barkindo, in the same Istanbul meeting said: "it was premature to talk about that option."

We started producing at optimal in June when Afrocardo Pipeline started working, it is not just premature it is stupid to even consider it.

Oil traders are creating this noise to boost prices (pump and dump strategy), if Saudi, Iraq, etc can not cut another 50,000 barrels from their over 10 million barrels a day to accommodate our almost 1.8 million barrel per day. They should go ahead and stabilise oil without us.

The Central Bank of Nigeria’s Investors and Exporters Foreign Exchange window has traded about $3.83bn since it was established on April 24, it has been learnt.

Foreign exchange traders said this on Monday as the naira traded more strongly on the window than on the black market, Reuters reported.

The window, where buyers and sellers are free to agree an exchange rate, was introduced by the CBN in April to try to attract foreign investors into the country and boost the supply of dollars.

Traders said $407m were traded last week compared with $354.8m in the previous week, indicating a gradual return in investors’ confidence to the forex market.

“We have seen continuous improvement in dollar inflow into the market in recent time from offshore investors and this has also reflected in the volume of transactions at the equity market,” one currency trader told Reuters.

Before the window was introduced, the CBN was the main supplier of hard currency on the interbank forex market, after foreign investors fled naira assets in the wake of an oil price slump in 2014.

A CBN spokesman last month said the bank was, on average, responsible for less than 30 per cent of trading on the investor market.

At the forex window, market regulator FMDQ OTC Securities Exchange quoted the naira at 364.56 to the dollar on Monday, versus 367 to the dollar on the black market.

Commercial banks quoted the naira at 306/dollar on Monday, the level they have been quoting for around the last two weeks

Meanwhile, the CBN on Monday injected a total of $142.5m into the inter-bank foreign exchange, a few days after intervening in the retail segment of the market with the sum of $254.3m.

A breakdown of the Monday’s intervention indicated that the bank offered the sum of $100m to dealers in the wholesale segment, while it allocated the sum of $23m to the Small and Medium Enterprises segment.

Those requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance received $19.5m.

The CBN spokesperson, Mr. Isaac Okorafor, said the CBN would continue to carry out its regular mediation in the market so as to keep the market liquid and guarantee the international value of the naira in line with its mandate.

http://investorsking.com/trade-hits-3-8bn-ie-window-cbn-sells-142m/ mynd44

United States President, Mr. Donald Trump at the weekend promised $639 million in aid to feed people facing starvation because of drought and conflict in North-eastern part of Nigeria, Somalia, South Sudan and Yemen.

Of the funding, $121 million would go to Nigeria, according to Rob Jenkins, Acting Head, Bureau of Democracy, Conflict and Humanitarian Assistance at the US Agency for International Development (USAID).

Similarly, more than $191 million would go to Yemen, $199 million to South Sudan and nearly $126 million for Somalia.

“With this new assistance, the US is providing additional emergency food and nutrition assistance, life-saving medical care, improved sanitation, emergency shelter and protection for those who have been affected by conflict,” USAID said in a statement

Jenkins, according to the News Agency of Nigeria (NAN), said conflicts in all the four countries had made it difficult to reach some communities in need of food.

“We’re in a dire situation right now. The situation in southern Ethiopia fortunately does not rise to the dire situation of the other four, but the situation is deteriorating and might very well be catastrophic without additional interventions,” he said.

Jenkins said USAID was also concerned about the situation in southern Ethiopia, adding that Washington had already provided some $252 million this year to Ethiopia, “but the needs continue to grow.”

President Trump’s pledge came during a working session of the G20 summit of world leaders in Hamburg, Germany, the UN World Food Programme (WFP), Executive Director, David Beasley, said on the sidelines of the meeting, according to Reuters.

“We’re facing the worst humanitarian crisis since World War Two,” Beasley said, describing the pledge as providing a “godsend” to the suffering millions and the global food agency fighting hunger worldwide.

The new funding brings to over $1.8 billion aid promised by the US for fiscal year 2017 for the crises in the four countries, where the UN had estimated more than 30 million people needed urgent food assistance.

Beasley said the US funding was about a third of what the WFP estimated was required this year to deal with urgent food needs in the four countries in crisis as well as in other areas.

The WFP estimates that 109 million people around the world will need food assistance this year, up from 80 million last year, with 10 of the 13 worst-affected zones stemming from wars and “man-made” crises, Beasley said.

“We estimated that if we didn’t receive the funding we needed immediately that 400,000 to 600,000 children would be dying in the next four months,” he said.

Trump’s announcement came after his administration proposed sharp cuts in funding for the US State Department and other humanitarian missions as part of his “America First” policy.

Beasley said the agency had worked hard with the White House and the US government to secure the funding, but Trump would insist that other countries contributed more as well.

http://investorsking.com/nigeria-three-others-get-trumps-639m-aid/ mynd44

The Central Bank of Nigeria (CBN) backed Monetary Policy Committee (MPC) members have lauded the convergence of foreign exchange rates, including the drop in the gap between the interbank rate and the bureau de change (BDC) from 150 per cent to 23 per cent.

They also said that a margin of five per cent was sustainable in most jurisdictions. The BDC rate closed on Friday at N370/$1 while the interbank rate stood at around N316/$1.

Also, players in the retail segment of the Nigerian inter-bank foreign exchange market had on Friday received a $254.3 million boost from the CBN. It said release of the fund followed bids received from forex dealers by the apex bank.

Information obtained from the CBN indicates that the deals in the retail window represent requests from the various sectors in the Secondary Market Intervention Sales (SMIS), thereby providing a boost to the respective sectors.

The Acting Director, Corporate Communications at the CBN, Isaac Okorafor, while confirming the forex sales, explained that the sale was in response to bids received from authorised dealers, on behalf of their customers, at the retail auction announced by the CBN on Wednesday.

http://investorsking.com/interbank-bdc-rate-gap-drops-23/

The Chairman, Federal Inland Revenue Service, Mr. Tunde Fowler, says the agency has collaborated with the Office of the Accountant General of the Federation to ensure that Ministries, Departments and Agencies remit tax revenues promptly.

This, he said, was achieved through the implementation of the Government Integrated Financial Management Information System, which ensures that Value Added Tax and Withholding Tax were deducted from source on all Federal Government contracts.

Fowler said this was part of moves by the Federal Government to drive tax revenue and enhance payment of taxes by all individuals and corporate bodies.

The FIRS chairman spoke in a keynote remark at the 44th Annual General Meeting of the Association of Advertising Agencies of Nigeria in Lagos on Friday.

“We have also improved collaboration with the Office of the Accountant General of the Federation to ensure that the MDAs remit taxes promptly through the implementation of the Government Integrated Financial Management Information System, which facilitates deduction and remittance of Withholding Tax and Value Added Tax on all contract payments at source,” he stated.

According to him, the service has considered the convenience, proximity and ease of tax payment by introducing the idea that taxpayers can now file tax returns at any of the FIRS offices nearest to them.

The move, Fowler, said had increased compliance considerably.

He noted that advertising was key to the realisation of the objective, describing it as “a major change in more than 60-year shift in tax operational rules.”

Commenting on the achievement of the agency, the FIRS boss said, “In 2016, the country celebrated the addition of N27bn to the national treasury from a novel idea; the waiver of penalty and interest programme. The FIRS offered tax amnesty to taxpayers in default of payment of taxes between 2013 and 2015.

“The tax defaulters were allowed to pay the actual taxes owed, while the penalty and interest were waived. This was with a proviso: that they declared their indebtedness, paid 25 per cent of the principal amounts and present payment plans on the outstanding tax liabilities, acceptable to the service.

“It is likely that some members of this respectable association or your clients would have benefited from the unusual and generous avenue, which relieved them of their tax burden under the programme.”

http://investorsking.com/firs-agf-collaborate-deduct-vat-source/

The Federal Ministry of Petroleum Resources has put Nigeria’s crude oil production, including condensate at 2.025 million barrels per day in June 2017. Besides, the agency said the Federal Government is yet to secure funding for the rehabilitation of the country’s refineries.

These come as the Federal Executive Council (FEC) approved the National Gas Policy, aimed at improving Nigeria’s gas fortunes and to boost the country’s revenues from the commodity.

The ministry, in its June report released on Tuesday, put the country’s gas production at 6.741 billion standard cubic feet (bscfd) during the month under review.According to the agency, Nigeria trucked out about 33.59 million litres (ml) of Premium Motor Spirit (PMS) also known as petrol; 8.90 ml Automative Gas Oil (AGO) also known as diesel; 1.84 ml Dual Purpose Kerosene, 1.04ml Aviation Turbine Kerosene (ATK); and 0.22 ml Low Pour Fuel Oil (LPFO) or black oil.

The ministry disclosed of ongoing activities to ensure that Nigeria ends the unsavoury practice of products importation by 2019, saying: “Our commitment and unquenchable effort to fully implement the refinery initiative of the 7BigWins, will bring a complete closure to petroleum products importation.”

Dwelling on the rehabilitation of the country’s refineries, the Minister of State for Petroleum Resource, Dr. Ibe Kachikwu, said no financiers have been selected yet.According to him, the plan is to formally engage pool of financiers after cost estimate for the refineries rehabilitation has been firmed up.

The minister said the refurbishment of the refineries to name plate capacity through the injection of private sector partner-finance remained the focus of the Government and to transit Nigeria from massive importer of petroleum products to a net exporter by end of 2019.

Kachikwu added that the government is also passionate about opening up investment opportunities in the mid-downstream sector and stabilise petroleum products supply across the country.

Meanwhile, the Minister has said that Nigeria needs major changes in policy to make gas a hub of the nation’s economy.The minister, who was quoted in a statement as speaking at the fifth Triennial National Delegates’ Conference of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), also disclosed that the National Gas Policy was approved following his presentation.

He highlighted the need to have a stream of revenues between petroleum and gas in order to see an improvement in the Nation’s economy and leverage on opportunities for gains from the oil and gas sector in line with the 7 Big Wins initiative and the National Economic Recovery & Growth Plan (ERGP 2017 to 2020).

He added that the ERGP articulates the vision of the Federal Government of Nigeria, sets goals, strategies and an implementation plan for the introduction of an appropriate institutional, legal, regulatory and commercial framework for the gas sector. It is intended to remove the barriers affecting investment and development of the sector. The policy will be reviewed and updated periodically to ensure consistency in Government policy objectives at all times.

http://investorsking.com/nigerias-crude-oil-production-hit-2-025mbpd-june/

IdeyFindWife:
Borrow to spend, borrow-to-chop, borrow-to-waste, borrow-to-steal-&-bury-abroad na only wetin this Nigerian govts understand; nothing much about revitalizing, re-positioning economy, jump-starting industry and generating actual revenue without taxing people blind while expanding their own pockets and waistlines...

go and borrow o. come back and see if we dey wait you....we are already on our way to the airports, adios NiggaArea loading!

The danger of this aggressive borrowing is the projected interest rate hike by most central banks and balance sheet normalisation that are expected to steepen yield curve -- increase costs of borrowing.

If oil growth remained lacklustre, foreign reserves would suffer and inability to meet financial obligations will necessitate credit downgrade from rating agencies. Plunging business confidence, FDI and new job creation.

However, domestic debts are worst. The FG and CBN need to exercise caution.

The Federal Government is planning to borrow between N360bn and N450bn via sovereign bonds maturing between five and 20 years in the third quarter, the Debt Management Office has said.

The DMO said on Wednesday that it would auction between N90bn and N120bn in the five-year note and between N135bn and N165bn in the 10-year and 20-year debt between July and September.

The Federal Government issues bonds each month to help fund its budget deficit, support the local debt market and maintain a benchmark for companies to follow.

The country expects a budget deficit of N2.36tn this year as it tries to spend its way out of a recession.

It expects to raise money to cover more than half the gap from the local market.

Meanwhile, the Federal Government has also said it is planning to borrow N1.24tn in the third quarter via the issuance of Treasury bills by the Central Bank of Nigeria.

A CBN debt calendar showed that it would sell N1.24tn worth of treasury bills from June 15 to August 31.

The apex bank aims to auction N226.64bn in 91-day bills, N311.32bn in 182-day and N698.64bn in 364-day debt.

The central bank sells TBs twice a month to help fund the government’s budget deficit and support commercial banks in managing liquidity.

The Federal Government has set out a budget plan worth N7.44tn for this year.

The country is grappling with its first recession in 25 years after a slide in global oil prices and due to the impact of attacks on oil facilities in the Niger Delta.

The Federal Government had recently issued a $300m diaspora bond.

The DMO said that Merrill Lynch and Standard Bank of South Africa were appointed as joint lead managers for the sale.

The country first unveiled in 2013 plans to sell diaspora bonds worth between $100m to $300m from Nigerians living abroad.

But the government at the time did not appoint a bookrunner.

http://investorsking.com/fg-borrow-n450bn-via-bonds-q3/

"We are captives of our own identities living in prisons of our own creation."

Investors have traded a total of N54.75 trillion in the fixed income and currency market between January and May 2017. Of the transactions, N9.49 trillion was exchanged in the month of May alone, which was 7.9 per cent higher than the N8.79trillion traded in April.

According to the FMDQ OTC Securities Exchange, the month-on-month growth was primarily driven by increased trading activities experienced in the FX (Spot) and Repurchase Agreements (Repos)/Buy-Backs product categories.

However, a minimal growth of 4.00 per cent was experienced in the Treasury bills (T.bills) product category. T.bills recorded the largest share of the overall turnover, accounting for 47.22 per cent of the market.

Repos/Buy-back transactions recorded the second largest share of total turnover, accounting for 22.32 per cent, while FX market transactions accounted for 21.01 per cent and Bonds, 8.43 per cent. Unsecured Placement & Takings, Money Market Derivatives and Commercial Papers represent 1.00 per cent of the overall market turnover.

In absolute terms, T.Bills accounted for N25.9trillion, while repos/buy-backs recorded 12.22 trillion.

The analysis of the transactions for the month of May only showed that activities in the FX market accounted for 24.88 per cent (27.71 per cent in April while Money Market (Repurchase Agreements (Repos)/Buy-Backs & Unsecured Placements/Takings)accounted for 29.13 per cent (22.85 per cent in April) of total turnover for the reporting period.

A further breakdown of the transactions in the FX market showed that $6.56 billion was recorded in May, a decrease of 15.03 per cent when compared with $7.72 billion in April.

The Central Bank of Nigeria (CBN) sold a total of $0.985 billion through various interventions conducted during the period under review, a 49.5 per cent decrease from the previous month.

The apex bank also maintained its marginal rate for the Secondary Market Intervention Sales (SMIS)–Wholesale Forwards intervention at $/N320; and $/N357 for Small and medium-sized enterprises(SMEs)and Invisibles.

Inter-Member trades stood at $0.56 billion in the month of May, an increase of 0.51 per cent from the trades recorded in April, while member-client trades stood at $4.19 billion, showing a decrease of 12.17 per cent previous month.

Turnover in the fixed income market in the month under review settled at N4.36 trillion, with transactions in the T.bills market accounting for 88.67 per cent of the fixed income market up from 85.46 per cent in the previous month.

Outstanding T.bills at the end of the month stood at N8.87trn, a decrease of 0.13 per cent compared with N8.88 trillion in April, while whilst FGN bonds’ outstanding value increased by 1.62 per cent to close at N6.93 trillion.

Activities in the Secured Money Market (Repos/Buy-Backs) settled at N2.61 trillion in May, 38.13 per cent more than the value recorded in April. Unsecured Placements/Takings also increased by 28.19 per cent to close the month with turnover of N0.14trillion.

http://investorsking.com/investors-stake-n54-8tn-in-five-months/

Nigeria is the 19th most attractive economy for investments flowing into the African continent, a new report has indicated.

The Africa Investment Index 2016 report showed that Nigeria attracted a net Foreign Direct Investment of $3.1bn in 2015.

According to the index, African investment destinations attracted an overall FDI of US $13.6bn.

Botswana was ranked the most attractive economy for investments flowing into the African continent followed by Morocco, Egypt, South Africa and Zambia.

The report was released by Quantum Global’s independent research arm, Quantum Global Research Lab.

Commenting on the report, the Head, Quantum Global Research Lab, Prof. Mthuli Ncube, said, “Despite the current economic challenges, we are quite confident on the medium to long-term market prospects. Nigeria has earmarked a significant amount of capital to develop critical infrastructure in the country and there are various opportunities for public private collaboration providing investors’ returns on their investments.

“We anticipate that investment in infrastructure will underpin the growth of the economy and meet the needs of a large Nigerian growth population.”

Following the decline in oil prices, which impacted various African oil producing nations, the Federal Government has intensified its effort towards diversifying the economy and has laid out a road map to enhance public infrastructure and support high-growth sectors in the country such as manufacturing, ICT, agriculture, among others.

This is aimed at meeting local demand along with boosting exports globally in the short-to medium term to stabilise the macro-economy.

Nigeria, the biggest economy in Africa with a gross domestic product of $415bn, is projected to grow to about $595bn by 2020.

According to the index, this presents a big market for goods and services. In this sector, the GDP per capita currently at 2,260 is projected to leap to $2, 907 by 2020, which could boost consumption and domestic demand.

Remarking on Nigeria’s economy, Ncube further said, “The short to medium-term focus of the Federal Government is to reduce imports and address primary sector blockages, such as roads, bridges, power, railway, aviation, water, housing, agriculture, education and health. Despite the current market volatility, Nigeria presents tremendous investment opportunities in these areas, which would not only support the local economy but also deliver significant yields to foreign investors.”

The Federal Government has implemented various reforms to boost and restructure the economy including the introduction of the Nigeria Industrial Revolution Plan, establishing the Enabling Business Environment Council to make Nigeria more attractive for investments, and the microcredit scheme in the 2016 budget, which will see the Bank of Industry, overseeing the disbursement of loans to 1.6 million traders, artists, farmers and young entrepreneurs over the next 12 months.

http://investorsking.com/nigeria-rated-africas-19th-attractive-investment-destination/