₦airaland Forum

Before I clicked on this thread, I knew its thenationonlineng.com, Tinubu.

The Nigerian Naira closed flat on the first official trading day of the year.

The local currency closed at N305 to a US dollar at the official window, same as the last working day of 2016.

At the parallel market, the naira closed at N490 against the US dollar, the same rate it closed on Friday, the last official trading day of 2016.

According to a Reuters report, the Central Bank of Nigeria sold $1.5 million to boost market liquidity and prop up the naira value against the dollar after the currency initially traded at N315.50 to the US dollar before gaining N10.50 to trade at N305.

Experts have said “In the week ahead, pressure on the naira will linger, especially at the parallel market, as backlog from the official market continues to stoke imbalances,” United Capital said in a research note on Tuesday.

The local currency had lost about 50 percent of its official value against the US dollar in 2016, plunging the stock market by 6.17 percent over the same period.

The CBN has struggled to support the naira due to lower oil prices and depleted external reserves.

http://investorsking.com/naira-closes-flat-on-first-trading-day-of-2017/

The Nigerian Ministry of Power, Works and Housing will spend about N324.1 million on the purchase, maintenance and fueling of plants and generators at both its headquarters and agencies in the 2017 fiscal year.

The 2017 Appropriation Bill, which is presently before the National Assembly, shows the headquarters and agencies of the three-in-one ministry are to spend N35.65 million on the maintenance of plants and generators, while about N57.2 million was budgeted for fueling and a total of N231.2 million allocated for the purchase of generating sets.

Documents have shown that many federal ministries budget millions for the purchase of generators and maintenance in 2017 despite promises by the Federal Government to ensure better power generation across the country.

According to a Punch report, an industry data obtained on Tuesday in Abuja showed that the total power generation in the country, which peaked at 4,208.3 megawatts on December 31, 2016, has dropped by 847.8MW to 3,360.5MW on January 2, 2017.

The report also revealed that the country has been generating around 3,000MW for about 10 weeks, before it finally crossed the 4,100MW mark on December 26, 2016. This could be temporary as it is not clear it could be sustained going forward.

On the budget for generators by Power ministry, the headquarters would spend a total of N217.1 million on the purchase, maintenance, and fueling. While N50 million will be spent by the Nigerian Electricity Regulatory Commission on the purchase of generators.

The remaining N57 million is allocated to 10 other agencies under the ministry for generator fueling and maintenance.

Transmission Company of Nigeria, Nigeria Bulk Electricity Trading and the Regional Centre for Training in Aerospace Survey are the three agencies under the ministry without allocation for generator purchase, maintenance and fueling in 2017.

http://investorsking.com/power-ministry-to-spend-n324-1m-on-generators-in-2017/ Mynd44

By the end of this year, the Federal Government would have spent, at least, N14.35 billion on the up-keep of former presidents, vice presidents and their families, over a period of 12 years, according to a Vanguard report.

From a modest N140 million in 2005, funds allocated to entitlements of former presidents/heads of state, former vice presidents or chiefs of general staff have risen rapidly to hit N2.3 billion in 2016 (See table). The peak was in 2012 when the immediate past Dr Goodluck Jonathan’s Administration budgeted N3.185 billion for the welfare of the ex-leaders.

The lowest allocation was in 2008 when N24 million was allocated. The figure for 2007 was not disclosed. Between 2013 and 2016, the allocation was constant at N2.3 billion for each year.

For 2017, the federal government has proposed N2.3bn. The Office of the Secretary to the Government of the Federation, OSGF, has allocated the sum of N432. 193 million for the purchase of cars for the nation’s seven former presidents/heads of state and four vice presidents.

N500, 000 Council of State meeting allowance

Apart from the N14.35 billion welfare package, each of the former leaders, who is an automatic member of the Council of State collects N500,000 whenever he attends the meeting that holds periodically, at least twice yearly, to deliberate and take decisions on crucial issues affecting the country.

The former presidents and heads of state are General Yakubu Gowon, Alhaji Shehu Shagari, General Ibrahim Babangida, Chief Ernest Shonekan, General Abdulsalami Abubakar, General Olusegun Obasanjo, and Dr. Goodluck Jonathan.

The former vice presidents and chiefs of general staff are Dr. Alex Ekwueme, Commodore Ebitu Ukiwe, General Oladipupo Diya, Alhaji Abubakar Atiku and Alhaji Namadi Sambo.

Deceased ex-presidents, whose families are constitutionally expected to reap from the largesse are Abubakar Tafawa Balewa (prime minister), General Aguiyi-Ironsi, Dr. Nnamdi Azikiwe (ceremonial president), General Murtala Muhammed and General Sani Abacha.

Origins of the welfare package

Adapted from the United States of America, which has an elaborate welfare package for former rulers, Nigeria started paying entitlements to former presidents by Decree 32 of 1999. In 2001, it became the Remuneration of former Presidents, heads of Federal legislative Houses and Chief Justices of the Federation (and other Ancillary Matters) Act.

The Act was further amended by the National Assembly in 2008 and 2010 with the Revenue Mobilisation, Allocation and Fiscal Commission, RMAFC mandated to fix the remunerations of the ex-leaders from time to time in line with economic realities especially whenever the salary of the serving president is raised.

RMAFC’s power

The power is provided for in Sections 70 and 84 (4) of the 1999 Constitution and the specific legislation is in the Certain Political Public and Judicial Office Holders (Salaries, Allowances, etc) Act, 2002 and the Amendment Act of 2008.

The entitlements

At the beginning, the 1999 Law provided that each former President and former Head of state is entitled to N350,000 per month, while former Vice Presidents and former Chiefs of General Staff are entitled to N250,000 per month for their up-keep.

The Act states: “As from the commencement of this Act, all former-Presidents and Heads of State of the Federal Republic of Nigeria (in this Act referred to as “former Heads of State”) shall be-(i) paid the sum of N350,000 per month as up-keep allowance; and (ii) entitled to the perquisites of office specified in Part I of the Schedule to this Act; and (b)Vice-Presidents and Chiefs of General Staff of the Federal Republic of Nigeria (in this Act referred to as “former Vice-Presidents”) shall be- (i) paid the sum of N250,000 per month as up-keep allowance; and (ii) entitled to the perquisites of office specified in Part II of the Schedule to this Act.’’

There are also provisions for domestic staff, security aides, vehicles and up-keep allowances for families of deceased presidents.

For former presidents

For instance, each former president is entitled to an officer not below the rank of a chief administrative officer; a personal secretary not below Grade Level 12; three to four armed policemen; one Department State Service, DSS officer not below Grade Level 10 as an Aide de Camp to be attached for life and paid by the State Security Agencies; three vehicles to be bought by the Federal Government and liable to be replaced every four years; and drivers to be paid by the Federal Government.

They and their immediate families are also entitled to free medical treatment within Nigeria; treatment abroad where necessary at Federal Government’s expense; a well furnished and equipped office in any location of their choice in Nigeria; a well furnished five-bedroom house in any location of their choice in Nigeria; and 30 days annual vacation at home or abroad.

For former vice presidents

For former vice presidents, the entitlements include: an officer not below the rank of a chief administrative officer; a personal secretary not below Grade Level 10, two to three armed policemen; one DSS officer not below Grade Level 8 as an Aide de Camp to be attached for life and paid by the State Security Agencies; two vehicles to be replaced every four years; drivers shall be selected by the former Vice-President and paid by the Federal Government; free medical treatment for them and their immediate families within Nigeria; treatment abroad where necessary; 30 days annual vacation within and outside Nigeria at Federal Government expense; a modestly well-furnished and equipped office in any location of their choice in Nigeria; a well furnished three-bedroom house in any location of their choice in Nigeria.

According to the 1999 law that has been amended, the remuneration of the former leaders shall be subject to review whenever there is an increase in the salary of the serving President and Vice-President; and the Federal Government shall in its annual budget make provision for the remuneration of former Heads of State and former Vice-Presidents.

In the case of death, the family of an ex-president, at the beginning, was entitled to the payment of the sum of N1,000,000 per annum payable in the sum of N 250,000 per quarter; and deceased former Vice-President was entitled to the payment of the sum of N750,000 per annum payable in the sum of N187, 500 per quarter.

The allowances applied to the up-keep of the spouse and education of the children of deceased former leaders up to the university level. However, the spouse of a former leader shall not be entitled to the allowance, if she re-marries.

Experience in other countries

US ex-president earns $205,700 a year

The United States via the Former Presidents Act, FPA, charges the General Services Administration, GSA, with providing former presidents a pension, support staff, office support, travel funds, and mailing privileges. The FPA was enacted in 1958 to “maintain the dignity” of the Office of the President by giving a former President — and his or her spouse — certain benefits so that he would not have to enter unsuitable occupations after leaving office.

Prior to 1958, former Presidents leaving office received no pension or federal assistance. After leaving office, some former Presidents — including Ulysses S. Grant and Harry S Truman — struggled financially. In 1912, industrialist and philanthropist Andrew Carnegie unveiled a plan to pay $25,000 pensions to all future former Presidents and their widows. The pensions were to be funded by the Carnegie Foundation of New York. Some Members of Congress and the public suggested it was inappropriate for a private company to pay pensions to former Presidents, hence the FPA.

Former US presidents also receive a lifetime of Secret Service protection and their children remain protected until they are 16 years old. The pension for former presidents matches the annual pay for senior political officials of the Executive Level 1 ranking and their salary is equal to that of the incumbent. In 2016, the pension was $205,700. Widows of ex-presidents are entitled to $20,000 a year.

For 2017, President Barack Obama has proposed a hike of about 18 per cent in appropriations for expenditures of former presidents.

Ex-president gets $188,000 a year in South Africa

In South Africa, former presidents continue to have all the payments, salaries and other packages that they were receiving the day before they left office, for the rest of their lives. They will also have their medical insurance fully paid.

Indeed, former President Thabo Mbeki enjoys the entitlements, which came through a resolution of the National Assembly that also allows the former president to have annual pay increases based on those recommended by the Remuneration Commission.

The resolution grants 50 per cent of the ex-president’s package to his widow if he should die.

Last March, the South African National Assembly voted to increase President Jacob Zuma’s salary to R2,716,798 per year or $188,000.

Indian experience, ex-president entitled to $13, 248 a year

In India, perks for former Prime ministers include lifetime rent-free accommodation, medical facilities, 14 secretarial staff, six domestic executive-class air tickets, unlimited train travel, office expenses against actual expenditure for five years and vehicles. All former prime ministers are entitled to benefits afforded to a cabinet minister, which includes 270,000 Rupees or $3, 974.

On retirement, a former president gets Rs.75,000 ($1104) a month as pension; a furnished rent free bungalow; medical facilities; unlimited domestic travel reimbursement with a companion by train or air; Delhi Police security; five personal staff including two private secretaries, one peon, one official car; and office maintenance expenses of Rs 60,000 or $883 per annum.

UK’s $515,000 gold-plated pension for ex-prime ministers

In Britain, some of the former prime ministers earn what has been dubbed as ‘’gold plated pension’’ that costs United Kingdom’s tax payers about £435,000 or $515,000 a year.

For instance, ex-Prime Minister Tony Blair is drawing the maximum Prime Ministerial pension – worth about £70,000 a year. The gold-plated pension comes on top of the £115,000 allowance that Mr Blair received, last year, to support his ‘public duties.’ Then there is his security team, which is estimated to cost, at least, £250,000 a year.

http://investorsking.com/fg-spends-n14-35bn-ex-presidents-vps-12-yrs/ mynd44

In an effort to boost government’s revenue, the central bank of Nigeria has instructed commercial banks across the country to extend the deduction of N50 stamp duty to savings account transactions.

The apex bank had previously exempted savings accounts through a circular issued on January 15, 2016. “For the avoidance of doubt, the following receipts are, however, exempted from the imposition of stamp duties: payment deposits or transfers by self to self, whether inter or intra bank; and any form of withdrawals/transfers from savings accounts.”

While it was not clear when the stamp duty collection was extended to savings accounts, some bankers said the only exemption now was deposits made by the owners of savings accounts.”

This means every third party deposit into a savings account with a value of at least N1,000, will be automatically charged N50 stamp duty fee, which the bank has a responsibility to transfer to the NIPOST Stamp Duty Account domiciled with CBN.

The circular reads “With immediate effect, all DMBs and other financial institutions shall commence the charging of N50 per eligible transaction in accordance with the provisions of the Stamp Duties Act and the Federal Government’s Financial Regulations 2009; that is, all receipts given by any bank or other financial institution in acknowledgement of services rendered in respect of electronic transfers and teller deposits from N1,000 and above.”

http://investorsking.com/commercial-banks-deduct-stamp-duty-savings-accounts/

The naira is set to witness another round of decline against the dollar in the days ahead as expected increase in dollar flows from Nigerians living abroad coming home for holidays fell short of expectations.

The local currency closed at 490 to the dollar on Friday, from 495 against the dollar last Friday at the parallel market, Reuters reported.

In the official interbank window, the naira was quoted at 310.25 to the dollar on Thursday, but it was expected to close at around 305.5, the same level it has traded at since August.

“We see the naira depreciating against the dollar by the time more businesses resume operations next week after the festive season as dollar liquidity remains thin in the market,” one currency dealer said.

Currency experts have predicted the naira will weaken against the greenback as the New Year approaches.

Specifically, they said the naira might fall to 500/dollar this week.

The naira has been under severe and continuous pressure as the scarcity of the US currency continues to create ripples in the financial markets and economy.

A director at Union Capital Markets, Mr. Egie Akpata, said it was really difficult to predict the direction of the naira currently because part of the currency market had shut down for the year.

“You can’t really predict the market now because part of the market has shut down for the year. Things will really take shape next week. Currently, it could swing anywhere,” he said.

http://investorsking.com/naira-faces-decline-continued-dollar-scarcity/

One of the world’s leading credit rating agencies, Moody’s, has cheerful news for Nigerians in 2017. It says the country’s economy and her dollar earnings are expected to improve in the new year.

The US-based top rating firm’s Vice President and Lead Analyst for Nigeria, Lucie Villa said Nigeria’s economy would bounce back to 2.5 percent in 2017 from its 1.5 per cent contraction in 2016.

Last July, the Minister of Finance, Kemi Adeosun, had said that Nigeria was “technically” in recession and that militant activities in the Niger Delta had affected government’s revenue. But Adeosun had also been upbeat about the chances of an economic improvement, saying, “We are going to come out of it and it would be a very short one because the policies that we have would ensure that we don’t go below where we need to go.”

The minister’s positive outlook was also echoed by Villa who said, “We expect Nigeria’s economic growth to bounce back to 2.5 percent in 2017, supported by an ongoing recovery in oil production.

“The government’s balance sheet is strong, with debt at around 16.6 per cent of Gross Domestic Product in 2016. Also, despite its interest burden rising to 19.8 per cent of revenue, Nigeria’s capital markets remain a reliable and captive source of liquidity and funding for the government.”

Villa’s optimistic outlook largely agreed with the projections in Moody’s latest report, released last December. In the report, which rates Nigeria’s economy B1 (stable), the agency noted that the “stable outlook” was supported by the strength of the country’s balance sheet. In 2017 and 2018, the credit rating agency said it expected Nigeria’s balance of payments to move back into surplus.

Moody’s, however, said Nigeria’s weak institutional framework, especially in terms of “the rule of law, government effectiveness and control of corruption,” would have a significant impact on its economic growth and fiscal strength, and thereby constrain the B1 rating.

“The country is still exposed to political risks arising from both the conflict with Boko Haram and recurrent attacks on oil infrastructures in the Niger Delta,” Villa added.

Moody’s also predicted that the Federal Government’s deficit would remain around two per cent in 2017 and 2018.

It said, “We forecast a general government budget deficit of three per cent of GDP in 2016, comprised of a two per cent of GDP Federal Government budget deficit and one per cent deficit split between state and municipal governments. We still assume that the authorities will not breach the statutory limit of three per cent imposed by the 2007 fiscal law, based on our view that they will reduce spending on a net basis if revenue collection underperforms.”

Moody’s stated further that two-thirds of 2017 real growth would come from the oil sector rebound alone, with a strong base effects expected in the second and third quarters.

“Nigeria’s large hydrocarbons reserves remain a key credit support: it has an estimated 37 billion barrels of oil (about 28 per cent of total African reserves) and nearly 34 billion of oil-equivalent in gas. Oil and gas exports tend to account for over 90 per cent of goods exports and a significant share of fiscal revenue (60-70% prior to the current oil shock). Our current oil price forecast are $45 per barrel in 2017 and $50 in 2018, compared to prices above $100 on average between 2010 and 2014,” Moody’s said.

Nigerian experts expressed similar views about the economy in 2017. According to the economists, the recovery will be slow, but if government increases productivity and implements the budget, Nigerians will have reasons to smile again.

An economist, Bismarck Rewane, said, “In terms of the economic outlook, it is going to be a very slow recovery towards the middle of the year, but it will be consistent and steady. So, we are likely going to see some improvements but (it would be) very slow. You would see that happening about the second quarter of 2017.

“There is hope as long as we are more productive (in 2017). The economic outlook can be considered positive as long as everyone contributes to the productivity of the country. It is a good thing that violence across the country is being curtailed. People can work under peaceful conditions, especially those who were displaced from their homes. There is hope because the Federal Government is demonstrating strong commitment to curb corruption.”

A former Head of Economics Department, Obafemi Awolowo University, Ile-Ife, Osun State, Prof. Abayomi Adebayo, also agreed with Rewane. According to him, Nigerians should be hopeful because the 2017 budget appears credible.

He said, “I believe there is hope because the budget appears to have credibility. There is hope because I believe this government will act appropriately and respond to active management of the economy to ensure sustainability and development.”

Similarly, an Associate Professor of Economics at the Ekiti State University, Abel Awe, said increased productivity would bring some cheer to the economy.

He said, “There is hope for the economy in 2017. With increased productivity, we can expect the recession to decline. The Federal Government should adequately address issues in the real sector, foreign exchange and encourage foreign investments.

“The economic outlook for 2017 will remain positive as long as the government and those directly involved in managing the economy pay proper attention to the key drivers of the economy,” he said.

However, other economic experts who spoke on the recession did not express as much optimism as Moody’s did.

They stated that there were many challenges the Federal Government must overcome before any ray of hope could be sighted on the horizon, adding that so far, the government and its economic handlers had not fully demonstrated the will and know-how to get the economy out of the woods.

A professor of Economics at the Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Tella Sheriffdeen, said, “The current economic outlook of Nigeria is gloomy. There is nothing to cheer about it right now. If nothing is done to re-direct our economic path, we should expect harder times in 2017. The finance ministry and the Central Bank of Nigeria need to harmonise their contradicting policies to the extent that there will be liquidity in the system, which will enable people to borrow money and expand their businesses — there is the need to synchronise the fiscal and monetary policies.

“This also means that the Central Bank must bring down the interest rate. That expansion will increase goods output, which will consequently bring down the inflation rate in the country. There is the need for such alignment for the economy to move forward. Government has to do something about the exchange rate also. I have suggested to the Federal Government to change the colour of our currency’s higher denominations. This will make the naira to firm up again. India did that recently and it was successful.

The professor said more importantly, Nigeria needed to start producing goods, with the CBN encouraging credit.

He said, “Non-oil sector should be widened to include not only agriculture but other aspects of the economy. The 2017 budget must be passed on time before the end of the first quarter so that money for capital projects can be released as quickly as possible — that is something that can generate employment and promote production of goods in the New Year. Maybe, if all these are done properly, we will come out of the recession by the end of 2017. But if the central bank continues to tighten its monetary policy because of inflation, I don’t know what the result will be. Inflation is not caused by monetary policies alone. It is caused by the absence of goods in relation to demand by the people.”

To stimulate the economy further, he stated that the country’s capital market should encourage and appeal to organisations like telecommunication firms to list on the stock exchange.

According to him, having such companies listed gives credibility to the stock market which will in turn attract foreign investors.

However, the Director General of the West African Institute for Financial and Economic Management, Nigeria, Prof. Akpan Ekpo, offered hope but with a caveat.

He said, “If the government implements fully what it promised to do, around the third quarter of 2017, the recession might be abated. Therefore, 2017 still looks bleak. Unless the policies of the government, as contained in the 2017 budget, are effectively implemented, Nigerians will have to face the recession till the third or fourth quarter. To me, the economic outlook for 2017 is gloomy. But if they can implement the things they claimed they would do in the 2017 budget, we might start seeing some good signs in the economy next year (2017). Before then, the country has to continue to brace for hard times. There is no miracle against that.”

A Kaduna-based economist, Shadrack Madlion, painted a harsher picture, saying that government had failed to plan properly for the future.

He said, “2017 will prove that a man who fails to plan has planned to fail. In terms of agriculture, Nigerians are going to face hunger because we are right now in the dry season. No nation survives on rainfall-dependent agriculture — that is what we have focused on for many years. Now, the Federal Government made a pronouncement that the nation would plant and eat what it grows. But that is not supported with action.

“We have more SUVs (Sport Utility Vehicles) in Nigeria than farm tractors. We have arable lands to produce enough food to eat but $12bn is depleted on food importation (annually). So, the economic outlook for 2017 speaks for itself: Nigeria’s economic outlook for 2017 is bleak. There is no correlation between what government says and what it does.”

Responding to inquiry concerning the country’s 2017 economic outlook, the International Monetary Fund told our correspondent that the organisation’s country team for Nigeria would soon meet the Federal Government to deliberate on the economy and likely policy options.

It is only after the meeting, the global financial body stated, that it would be able to have informed responses as to whether Nigeria’s economic outlook for 2017 would be bright or bleak.

“As we have said before, Nigeria’s economy has been affected by a range of domestic and global developments, particularly lower oil receipts from the decline in both oil prices and oil production. The response to this requires an internally consistent and credible package of sustainable economic measures involving fiscal discipline, monetary tightening, banking sector strengthening, and structural reform.

“IMF staff are planning to conduct the annual Article IV discussions with the authorities during the first quarter of 2017. After that, we should have updated details on the authorities’ plans for economic recovery and the country’s economic outlook and growth plan for 2017,” a spokesperson for the IMF told our correspondent.

http://investorsking.com/topmost-global-rating-body-nigerias-economy-will-improve-2017/

seunny4lif:

So, US spend billions of dollars on security but can't outsmart Russia that spend only millions of dollars
Overrated US
But the same US hacked Germany and more than 20 countries president phones and now Russia outsmarted them
Don't you just love Russia
Putin will always outsmart the US presidents

How old are you? Putin outsmart the US? Be aware that the US have more than enough details of Putin deals and secrets, not just that the entire world. Putin himself know this and smart people know this. Throughout today, analysts/experts on diplomatic issues have discussed the possibility of the US killing Putin current rating with those details, but few have argued that it will alert the world to how much US government have or know about each nation, especially with Edward Snowden recent revelation.

The US spends over $500 billion every year on security, when Russia economy was good, they were spending about $50 billion and you think they have more arsenal than the US? People like you have no idea.

cliquevibes:
. Over-reacted u say.. Really..Russia meddled in d U.S elections bt hacking d DNC files which led 2 some secret about hilary out in d open which proved 2 be catastrophic.. 2 days b4 d U.S elections, her aide(4gotten her name) husband laptop was hacked and emails some years back was leaked 2 d public which den made hilary look lyk an untrustworthy individual and one who culd be easily influenced..

There is even talk about a clip where donald trump called his son a retard but it never saw d light of day, So yes, Russia did had a hand in d hacking because it wnt ave been easy for jst any hacker to access hilary files even though she used a private server when she was secretary of state...

Donald even though he was a racist was seen as a better alternative..

I Rest My Case

You are wasting your time on these people, some of them think a whole US president over reacted on a report from CIA and FBI that undermine the security of the entire country. Russia do not just have hand in the hacking, Russia state government surpervise these hackings, 1 billion yahoo emails, olympic data base for drug tests, democrat system, etc.

The Federal Government and some of its agencies that are not under the first line charge will spend N1.91bn on clearing of sewage and fumigation in the 2017 fiscal year, investigation has shown.

Details of the proposed spending are contained in the 2017 budget, which was submitted to a joint session of the National Assembly by President Muhammadu Buhari on December 14.

The N7.3tn budget has a total capital vote of N2.24tn, representing 30.7 per cent while the recurrent component stood at N2.98tn with the rest allocated for debt servicing.

The Presidency, which includes some parastatals, will spend a total of N132.47m on the items.

The State House Headquarters leads the pack in terms of sewage as it will spend N52.83m on sewage charges. The State House Liaison Office in Lagos will spend N10m.

The Office of the Senior Special Assistant to the President on Sustainable Development Goals will spend N1.8m on sewage charges while the Office of the Chief Economic Adviser to the President will spend N3.71m.

The National Institute for Policy and Strategic Studies, Kuru, will spend N7.07m on sewage and fumigation; the Bureau of Public Enterprises, N346, 400; and the Economic and Financial Crimes Commission, N19.5m.

Others are the Bureau of Public Procurement, N3m; the Nigerian Extractive Industry Transparency Initiative, N3.31m; the Nigeria Atomic Energy Commission, N5.6m; and the National Emergency Management Agency, N25.3m.

On the other hand, the Ministry of Finance and its parastatals such as the Office of the Accountant General of the Federation among others will spend N108.57m on fumigation and cleaning while N16.97m would be used to clear sewage in 2017.

For the Ministry of Industry, Trade and Investment and its parastatals such as the Standards Organisation of Nigeria and the Consumer Protection Council among others, the sum of N75.96m is allocated for fumigation and cleaning while the proposed spending for sewage is estimated at N6.46m.

Similarly, the sum of N53.03m is allocated to the Ministry of Budget and National Planning and its parastatals such as the National Bureau of Statistics and the Budget Office of the Federation, among others for fumigation in 2017.

For clearing of sewage, the budget ministry and its parastatals are allocated a total sum of N12.48m for the 2017 fiscal year.

The Ministry of Science and Technology and its parastatals such as the National Agency for Science and Engineering Infrastructure among others, got a total allocation of N83.06m for fumigation in 2017 while sewage charges have been put at N0.4m.

While no amount is budgeted as sewage charges for the Ministry of Health, a total of N11.99m is budgeted for some of the parastatals under the ministry as sewage charges.

The bodies are the National Health Insurance Scheme, N1, 200,000; Radiographers Registration Board, N400,000; the Obafemi Awolowo University Teaching Hospital, Ile- Ife, N1,170,465; Abubakar Tafawa Balewa University Teaching Hospital, N500, 000; and the Federal Specialist Hospital, Irrua, N900,000.

Others are the Federal Neuro Psychiatric Hospital, Yaba, N625,484; Federal College of Complementary and Alternative Medicine, N433,484; National Orthopaedic Hospital, Enugu, N164,352; and the Federal Medical Centre, Kogi, N3,715,200.

Similarly, FMC, Bayelsa, got N110, 045; Federal School of Medical Laboratories, N1, 405,600; Nigeria Institute for Medical Research, N300, 000; NOMA Children Hospital, Sokoto, N95,258; Institute of Chartered Chemists of Nigeria, N67,995; and the Nigeria Centre for Disease Control, N13,053.

On the other hand, the sum of N3,527,555 has been allocated to the Ministry of Labour and Employment for sewage charges.

While the Ministry of Labour and Employment headquarters got N1,580,388, the National Directorate of Employment, Industrial Arbitration Panel, the National Productivity Centre and the Michael Imoudu Institute of Labour Studies budgeted N1.3m, N407,171, N242,000 and N240,000 respectively as sewage charges.

The budget also captured N2,444,519 as proposal for sewage charges under the headquarters of the Ministry of Niger Delta Affairs.

The Ministry of Education, on the other hand, plans to spend N38m on cleaning and fumigation of its headquarters in Abuja in 2017.

It will also spend N4.8m on clearing of sewage as indicated in its 2017 budget breakdown. Its total allocation for the year stands at N17.9bn.

The Ministry of Foreign Affairs proposes to spend N18m on fumigation and N2.52m on clearing of sewage in the New Year. Its total allocation is put at N13.1bn.

The Ministry of Interior said its sewage charges would gulp N1,400,582, while cleaning and fumigation would take N9.5m. The ministry has a budget of N11.9bn.

On the other hand, the Nigeria Police Force expects to spend N30m for sewage clearing at all its formations and commands nationwide, while cleaning and fumigation will cost N20.1m.

The Force has a total allocation of N323.1bn, made up of N9.25bn for overhead; N297bn for personnel; N307bn for recurrent; and N16.2bn for capital projects.

The Police College, Wudil, Kano, proposes to spend N800, 000 on sewage clearing and N1.8m on cleaning and fumigation.

The Nigeria Security and Civil Defence Corps plans to spend N240,000 as sewage charges and N2.160m for fumigation in 2017. The service has a total budget of N69.4bn.

The Nigeria Immigration Service, in its budget, allocates N2.9m for sewage charges and N12m for fumigation out of its total budget allocation of N54.6bn.

Provision of water and sewage network in prisons will cost N153.7m in 2017 out of the total allocation of N72.3bn for the Nigerian Prisons Service.

The Ministry of Power, Works and Housing, including its agencies, is to spend N79.33m on sewage charges and cleaning/fumigation services in 2017.

The ministry headquarters will spend the highest amount of N28.76m, followed by the Federal Road Maintenance Agency, N23.92m; while the National Power Training Institute is allocated N1.3m.

Of the 14 agencies captured in the ministry, seven have no allocation for the services under review.

The Federal Ministry of Agriculture has 41 agencies, which include the ministry’s Abuja headquarters. A total of N72.25m is to be spent on sewage charges and cleaning/fumigation services by the ministry and its agencies.

While 16 of its agencies have no allocation for the highlighted services, the Nigeria Stored Products Research Institute, Ilorin, has the highest budget of N10.73m, followed by the National Centre for Agricultural Mechanisation, Ilorin, N7.41m.

The lowest allocation of N141,600 goes to Federal College of Land Resources Technology, Kuru, Jos.

The Federal Ministry of Water Resources provides a budget of N51.74m for sewage charges and cleaning/fumigation. It has 17 agencies, including the ministry’s headquarters, but four do not get any allocation for the services in the 2017 budget.

The highest allocation of N13.58m goes to Nigeria Integrated Water Resources Management Commission, followed by N10.33m for the ministry’s headquarters, while the lowest was N100,000 for Chad Basin River Development Authority.

The Ministry of Mines and Steel Development and its 10 agencies will spend N114.1m on sewage charges and cleaning/fumigation services.

The ministry’s headquarters has the highest allocation of N37.15m, followed by Nigeria Geological Survey Agency, N31.51m, while the lowest amount of N2m is allocated to the National Iron Ore Mining Project, Itakpe.

For the Ministry of Environment, N133m is budgeted for the services under review. Of its 19 agencies, including the ministry’s headquarters, only one does not get allocation for sewage charges and cleaning/fumigation services.

The ministry’s headquarters gets the highest allocation of N61.01m, followed by the N17.03m allocated to the Forestry Research Institute of Ibadan, while the lowest allocation of N307, 840 goes to Kamuku National Park.

The Ministry of Petroleum Resources has six agencies, including the ministry’s headquarters, and is to spend N50.42m on the services.

But unlike most ministries, the headquarters of the FMPR has no allocation for sewage and cleaning/fumigation services.

The highest allocation for the services under review went to the Department of Petroleum Resources as the agency is to spend N38.45m, followed by N4.55m to be spent by the Petroleum Products Pricing Regulatory Authority.

The lowest allocation of N1.58m goes to the Nigeria Nuclear Regulatory Authority.

The Federal Ministry of Transportation and its agencies will spend N36.62m. Of its nine agencies, including the ministry’s headquarters, four do not get any allocation for the services being considered.

The ministry’s headquarters gets the highest allocation of N29.5m. The second highest allocation of N2.76m is for the Accident Investigation Bureau, while the lowest budget, N828, 000, goes to the Council for the Regulation of Freight Forwarding in Nigeria.

The Federal Ministry of Information and Culture proposes to spend N1,086,693 on sewage charges.

There are 13 agencies under the ministry which also plan to spend a total of N14,396,122 as sewage charges.

The Nigerian Tourism Development Corporation and the News Agency of Nigeria have the highest budget proposal for sewage charges. NTDC proposes N2, 769,072 while NAN plans to spend N2, 580,000 as sewage charges.

The rest are the Voice of Nigeria (N1,176,660); Nigerian Film Corporation (N261,444); National Broadcasting Commission (N889,999); Nigeria Press Council (N255,858); National Troupe of Nigeria (N233,011); National Theatre (N1.2m); National Gallery of Art (N750,000); National Institute of Hospitality and Tourism Development Studies (N1,361,801), and National Institute for Culture Orientation (N868,277); National Orientation Agency (N800,000) and National Council for Arts and Culture (N2m).

The Federal Ministry of Justice also plans to spend N3,784,596 as sewage charges for year 2017.

Two other organisations under the ministry, the Council of Legal Education and the National Agency for the Prohibition of Traffic in Persons, propose a total of N1.75m for the same purpose.

While the Council for Legal Education budgets N900, 000, NAPTIP proposes to spend N850,000 for it.

Other agencies under the Justice ministry, comprising, the Nigeria Law Reform Commission, the Legal Aid Council, the Nigeria Institute of Advanced Legal Studies, the Regional Centre for International Arbitration, National Drug Law Enforcement Agency and National Copyright Commission, do not have budgets for sewage charges.

The Ministry of Youth and Sport Development also proposes N1,872,696 as sewage charges for 2017.

This is apart from the amount other agencies under the ministry have proposed for the same expenditure. Three agencies under the ministry plan to spend N3,500,000.

The three agencies are the Citizenship and Leadership Training Centre (N200, 000); the National Youth Service Corps (N2.6m), and the Nigeria Football Federation (N720,000).

The National Institute of Sports has no budget for sewage charges.

The Ministry of Defence and the agencies under it, including the Nigerian Navy, the Nigerian Air Force and the Nigerian Army, plan to spend a total of N225.64m on fumigation, sewage charges, and clearing of sewage in 2017.

The Ministry of Women Affairs and its parastatals, on the other hand, plan to spend N15,677,004 on similar services while the Ministry of Communications and one agency under it plan to spend N29,340,637 on the services.

While the ministry headquarters will spend N17,355,053, the Nigerian Communication Satellite Limited will spend N11,985, 584 on cleaning and fumigation services.

Story by: Everest Amaefule, Fidelis Soriwe, Ifeanyi Onuba, Adelani Adepegba, Ade Adesomoju, Okechukwu Nnodim, and Olaleye Aluko.

http://investorsking.com/fg-to-spend-n1-9bn-on-sewage-fumigation-in-2017/

The Nigerian naira has been listed as one of the world’s worst performing currencies in 2016, according to a report compiled by Bloomberg LP.

The naira was said to have lost 36.68 percent of its spot returns for the year, while the Egyptian pound, Suriname dollar and Venezuela bolivar’s currency spot returns dropped by 58.84 per cent, 46.68 per cent and 37 per cent, respectively, for the period.

The Nigerian equity market fared worst in the year, according to the report, as the nation’s economy is set to contract in 2016 for the first time in more than 20 years as capital controls deter foreigners from investing and militants are blowing up pipelines.

The five best performing currencies of the world are the Russian ruble, Brazilian real, the palladium, the Iceland krona, and silver, which appreciated by 21.31 per cent, 20.96 per cent, 20.08 per cent, 14.42 per cent and 14.41 per cent, respectively, in terms of spot returns.

Two Africa currencies, the Zambian kwacha and South African rand, emerged as the sixth and seventh best performing currencies of the world. The kwacha and rand appreciated by 11.96 per cent and 11 per cent respectively.

The report stated, “It was a particularly bad year for any currency called the ‘pound’. The Egyptian version was the worst performer in 2016 as the nation took the dramatic step of allowing it to trade freely in an attempt to stabilise an economy struggling with a dollar shortage and concerns over social unrest. Britain’s pound tumbled after the Brexit and never recovered.”

On the other side of the spectrum, digital currency, bitcoin, was the best performer this year, rising more than 100 percent as capital controls in places like China and isolationist rumblings in the United Kingdom and the United States fuelled interest in alternate currencies, according to the report.

It added, “When it comes to currencies issued by governments and central banks, the Russian ruble has been the best performer of the year as the oil market rebounded.

“While the UK currency’s slide didn’t match those in some emerging markets, it did tally the worst performance among major currencies.”

Despite recent unrest, Brazil’s Ibovespa stock index remained the best performer for 2016 when looking at all indices in terms of the US dollar, the report noted, stating that this was largely due to hopes that President Michel Temer, who took office after Dilma Rousseff was impeached, would end the worst recession in a century and bring about political stability.

http://investorsking.com/naira-among-worst-performing-global-currencies-in-2016/

The Federal Government has raised duties on luxury goods such as yachts and Sport Utility Vehicles (SUVs) imported into the country. But also affected are some food items such as rice, salt and sugarcane that have local alternatives.

The plan to raise the duties which was first contemplated by former Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo- Iweala under the immediate past administration of Dr. Goodluck Jonathan had remained on the drawing board due to Jonathan’s loss of the presidential election to the incumbent President Muhammadu Buhari and the consequent change of officials between the former administration and the current one.

Under the new Economic Community of West Africa (ECOWAS) Common External Tariff (CET) regime which administers import and export tariffs within the West African sub-region in the movement of goods, importers of yachts and other luxury automobiles such as SUVs, boats, sports cars, and other vessels used for pleasure are now to pay 70 per cent of the value of the vehicles as taxes (duties) to the Nigeria Customs Service (NCS). The new rate is a jump from the 20 per cent which the owners currently enjoy. The increase is contained in a circular by the Minister of Finance, Mrs. Kemi Adeosun to the NCS.

Other major items affected in the duty increase include sugar cane and salt from 10 per cent to 70 per cent; alcoholic spirit, beverages and tobacco from 20 per cent to 60 per cent; and rice from 10 per cent to 60 per cent.

Also included on the list are packaged cement, from 10 per cent to 50 per cent; cotton/ fabrics materials, from 35 per cent to 45 per cent; and used cars popular known as Tokunbo, from 10 per cent to 35 per cent respectively.

Medicaments such as anti-malarials and antibiotics; crude palm oil; wheat flour; tomatoes paste; and cassava products are also affected in the upward review of duties. But essential industrial sector accessories, including bolt, industrial oil and other equipment are to enjoy a downward review to spur local industrialisation.

The cut in the import tariff on items for industrial use may encourage entrepreneurs whose industries are shut down due to the high duties paid on imported components. Such companies may resume or expand their operations as a result of the incentives.

However, while the new policy may trigger a rise in the prices of some consumable goods until the demand for them is met locally, the NCS, which has been grappling with meeting the fiscal target set for it by the Federal Government may boost its revenue.

The policy which is coming on the heels of the recent ban by the NCS on all vehicle imports through the land borders in the country, as part of measures to curb smuggling of particularly used cars into the country is going to see citizens pay higher for used cars popularly known as ‘Tokunbo.”

The smuggling of cars into the country may have dealt a very big blow to the customs’ revenue generation as the budget minister recently announced that the NCS’ projected revenue for the third quarter of this year fell short of expectation by N100 billion, recording N200 billion instead of N300 billion target given to the agency by the Federal Government.

According to the Finance Minister, Buhari has already approved the new tariff regime.The circular reads in part: “This is to confirm that Mr. President has approved the 2016 fiscal policy measures made up of the Supplementary Protection Measures (SPM) for implementation together with the ECOWAS CET 2015 – 2019 with effect from 17th October, 2016.

“Consequently, all transactions prior to the effective date of this circular shall be subjected to the tariff rates applicable before the coming into effect of this 2016 fiscal policy measures.”

It added that the approved SPM was in line with the provision of the ECOWAS CET comprising the following:“An Import Adjustment Tax (IAT) list with additional taxes on 173 tariff lines of the extant ECOWAS CET; national list consisting of items with reduced import duty rates to promote and encourage development in critical sectors of the economy; an import prohibition list (Trade), applicable only to certain goods originating from non-ECOWAS member states.”

Adeosun declared that the current fiscal policy measures superseded those of 2015, and advised the customs and other stakeholders to ensure strict compliance.

http://investorsking.com/government-raises-import-duties-consumable-luxury-goods/

The ministry of foreign affairs has budgeted about N48.90 billion for 115 foreign missions in 2017 budget.

According to the 2017 budget proposal, Nigeria’s Foreign Mission in New York led the list with the highest allocation of N1.877 billion.

Washington followed with an allocation of N1.05 billion; London received an allocation of N1.433 billion; Berlin, N743.880 million; and Madrid, N682. 286 million.

On the flip side, Nigeria Foreign Mission in Columbo, Sri Lanka, received the least allocation of N259.16 million, followed by the Mission in Lome, with N252.6 million.

Others in this category are Freetown N260.61 million and Spain, with a total allocation of N267. 84 million.

The total allocation to the Ministry of Foreign Affairs and its agencies is N66.664 billion, comprising recurrent expenditure of N56.869 billion and capital expenditure of N9.795 billion.

http://investorsking.com/ministry-of-foreign-affairs-budgeted-n49bn-for-115-foreign-missions/

KwaraRat:
Rubbish!

Dangote was made by govt subsidy under Obasanjo which gave him monopoly to import unfit for consumption rice. It is from there he got a lucrative sugar import monopoly and there his business empire sprang.

Dangote group requires top level govt intervention by providing waivers and necessary policy to ensure his monopoly. The Vaswani brothers who imported rice as well were kicked out of Nigeria to pave where for Dangote and Folawiyo's dominance.

Lol..Beer parlour talk

KwaraRat:
If not for buhari subsidising Dangote through a special forex rate in order to recoup local earnings to meet foriegn obligations, the man Dangote would have lost at least 60% of his wealth.

Lie, Dangote has closed some of his businesses. He is sustaining functioning ones via forex from other businesses spread across Africa. That is the edge he has over Erisco, Otedola and the likes. No preferential treatment.

Africa’s richest man and President of the Dangote Group, Aliko Dangote, has lost 32 percent of his wealth, according to the Bloomberg Billionaires’ Index.

Bloomberg reported on Wednesday that Dangote lost $4.9bn or one-third of his wealth as the combined effect of falling oil prices and the June devaluation of the naira pushed him to No. 112 on the billionaires’ list with $10.4bn. Dangote was the world’s 46th-richest person in June.

Saudi Arabia’s Prince Alwaleed Bin Talal Al Saud fell by $4.9bn, a 20 percent drop, the report added.

Alwaleed had said in November that all of his stakes in public companies, including Citigroup Incorporated, were potentially for sale, reversing a longstanding policy that some of his most-prized shareholdings were “forever.”

Wealth creation in China turned negative for the first time since the inception of the Bloomberg index five years ago, with the country’s richest losing $11bn in 2016 amid a slump in the Shanghai Shenzhen CSI 300 index and a seven per cent decline for the yuan against the dollar.

Alibaba Group Holding Limited’s founder, Jack Ma, closed the year with $33.3bn, adding $3.6bn in 2016. He dropped in and out of his place as Asia’s richest person for the first four months of the year before claiming it for good in May, after Alibaba’s finance affiliate, which is laying the groundwork for an initial public offering expected as soon as next year, completed a record $4.5bn equity fundraising round.

China has 31 billionaires on the index with $262bn, trailing the US, which has 179 billionaires who control $1.9tn, and Germany, whose 39 individuals have $281bn.

Russian billionaires also began to put the negative effects of the US and European sanctions behind them, reversing the combined $63bn declines for 2014 and 2015, and adding $49bn in 2016.

Wealth managers for the world’s richest are girding themselves for similarly frenetic start to 2017 as the seismic changes that voters demanded this year start to take shape.

“Expect the unexpected,” said Sabine Kaiser, founder of SKadvisory, which advises family offices on venture capital and private equity. “I don’t think family offices are overly concerned or getting too nervous but after Brexit and Trump, they’ve resigned themselves to market volatility.”

In a year when populist voters reshaped power and politics across Europe and the U.S., the world’s wealthiest people are ending 2016 with $237 billion more than they had at the start.

However, the Bloomberg Billionaire index revealed that the world’s richest made $237bn this year.

The gains were led by Warren Buffett, who added $11.8bn during the year as his investment firm, Berkshire Hathaway Incorporated, saw its airline and banking holdings soar after Donald Trump’s surprise victory on November 8. Buffett, who’s pledged to give away most of his fortune to charity, donated Berkshire Hathaway stock valued at $2.6bn in July.

The US investor reclaimed his spot as the world’s second-richest person two days after Trump’s victory ignited a year-end rally that pushed his wealth up by 19 per cent for the year to $74.1bn.

“The year 2016 has been event-driven with global news driving prices rather than fundamentals,” said Michael Cole, president of Ascent Private Capital Management, which has about $10bn of assets under administration.”

http://investorsking.com/dangote-loses-32-of-wealth-in-2016-bloomberg-index/

qleap2all:
Nigeria Consumers are docile and ineffective, in other climes prices would have fall with people's apathy to high price

Apathy to limited necessities? That method is applicable to only demand pull inflation and not cost push.

Air travel apex regulatory body, the Nigerian Civil Aviation Authority (NCAA) has fined Arik Air N6 million for the violation of aviation rules in the recent poor handling of luggage belonging to some London passengers.

NCAA also mandated the airline to pay the affected passengers the statutory $150 (about N60,000) as compensation for the inconveniences within the next 30 days.

The Guardian learnt that Arik Air between December 2 and 4 brought scores of passengers from London to Lagos without their checked-in luggage.

NCAA yesterday said the action contravened the Nigerian Civil Aviation Regulations (Nig.CARs), coupled with alleged lack of compassion for the affected passengers by the airline.

General Manager, Public Relations of the NCAA, Sam Adurogboye, said upon the receipt of complaints, the agency invited Arik to a meeting on December 6, 2016 with a directive to immediately address the issues.

Adurogboye added: “However, Arik embarked on continuous flouting of the Nig.CARs and the authority’s directives to freight all backlogs of short-landed baggage to Lagos within 48 hours.

“Similarly, the carrier declined to offer care and compensation to the affected passengers, which were unanimously agreed for $150.”

He added that the airline also did not inform the passengers at the soonest practicable time that their checked-in baggage would be off-loaded as required by Part 19.7.2 of the Nigerian Civil Aviation Regulations (Nig.CARs) 2015.

“Consequent upon these, the following sanctions suffice: Arik Air Limited to pay to the Authority within seven days of receipt of this letter, the sum of N6,000,000.00 being civil penalty for violation of Part.19.7.2 of the Nig.CARs, 2015.”

Arik, however, blamed the development on the use of a smaller aircraft, a Boeing 737-800 to operate the Lagos-London Heathrow route due to maintenance on the wide-body A330-200 aircraft frequently used on the route.

The spokesperson of the airline, Banji Ola explained that the airline’s Airbus A330-200 aircraft was hit by a handling company at John F Kennedy International Airport New York on December 1, 2016 which led to the B737-800 to be deployed on the Lagos-London route.

According to him: “In order to avoid a cancellation of the Lagos-London Heathrow flights, an alternative B737-800 aircraft had to be allocated on the route to minimise the inconvenience to passengers.

“The airline was constrained in capacity from a wide-body A330-200 aircraft to a narrow-body B737-800 aircraft and thus had to leave some of the passengers’ baggage behind in London.

“Passengers were, however, duly informed of this capacity restriction at the check-in desk at London Heathrow Airport and were advised of the possibility that some of their baggage will have to be sent on subsequent flights as per space availability.”

http://investorsking.com/ncaa-fines-arik-n6m-poor-handling-luggage/

The cost of goods in Nigeria rose to a record high in 2016, following the persistent increase in prices of goods across the nation.

The consumer price index, which measures inflation rate surged from 9.62 percent in January to about 92 percent in November.

While the CPI figures for December would be released in January 2017, it is projected by experts to remain within 18 percent.

However, the federal government during its National Economic Recovery Growth Plan (NERGP) said it was targeting a growth rate of about 7 percent between 2017 and 2020. This, experts believed will moderate inflation rate accordingly and boost consumer spending.

Speaking on the matter, prof. Akpan Ekpo, the Director General of the West African Institute for Financial and Economic Management said the government need to embark on structural economic reform to negate some of the challenges facing the nation.

“Our economy only consumes, we do not produce anything that brings foreign exchange. So, what you do is that you direct policies that would encourage people to encourage and manufacture, no matter how little, something that would add value, before you export. What we need now are structural policies. What we have seen is that the central bank has been doing a lot of what it ought not to be doing. The central bank is pushing out a lot of intervention funds. A lot of times, their intervention funds have fiscal coloration. And that is not supposed to be their business.

“So for me, recessions are recurrent in the market system. It comes and goes, but it gives you an opportunity to make sure that you manage the economy properly. No two recessions are alike. Also, they need experts to help them manage the economy. It is not a tea party.

“They need technocrats to advise them. And in our system, no government has a long-run luxury. Every government has four years, so they have to move fast. My worry for Nigeria is more than the economic recession. Let me ask you as question. If for example, the next quarter Gross Domestic Product (GDP) growth becomes positive marginally, that means the economy may be out of recession. But has the problem of unemployment been solved? Has that solved the problem of inflation? Has that solved the poverty problem? It has not! So, we need to carry out long-term structural reforms and be serious about what we are doing,” Ekpo stressed.

http://investorsking.com/consumer-prices-nigeria-rise-92-2016/

The nation’s foreign exchange reserves have risen further to $25.4bn, according to the latest data obtained from the website of the Central Bank of Nigeria.

In less than one week, the reserves rose by almost $300m from $25.084bn recorded on December 16, 2016 to $25.361 on December 22, 2016, the CBN data showed

This indicated that the foreign exchange reserves had risen to almost four-month high.

The last time the reserves recorded something close to this figure was on September 2 when it had the balance of $24.361bn.

The nation’s fast-depleting reserves had recorded $23.89bn low on October 19.

The reserves have dropped by 15.9 per cent from last year when they closed at $29.7bn.

At the end of November, the reserves stood at $24.77bn, up from $23.95bn on October 31.

The CBN data showed that the foreign exchange reserves declined to $24.92bn on September 14 from $25.11bn on September 9.

Currency and economic experts are not sure if the tiny upticks in the external reserves’ level are sustainable amid a falling naira and acute shortage of dollar in the foreign exchange markets and the economy.

“We are not sure the extent this can go. Currently, the FX market is not a free-float one where the interplay of demand and supply determines price and volume. The uptick is not as a result of supply over demand. It happens when there is a slowdown in the allocation of FX,” the Chief Executive Officer, Cowry Asset Management Limited, Mr. Johnson Chukwu, said.

A senior associate in investment banking at Afrinvest, a research and investment firm, Mr. Ayodeji Ebo, said the gradual increase might only be sustainable if the oil price maintained its current level and there was a continuous ramp up in oil production. The CBN had on June 20 lifted its 16-month-old currency peg and auctioned about $4bn on the spot and futures market to clear a backlog of dollar demand to help boost interbank market trading.

The reserves fell from $26bn on August 4, 2016 to $25.97bn on August 5 as the central bank stepped up dollar sales to boost liquidity at the interbank market and support the ailing naira.

The naira, which touched an all-time low of 365.25 per dollar on August 18 at the official market, has consistently closed around 305.5 in recent weeks.

http://investorsking.com/external-reserves-rise-further-now-25-4bn/

jericco1:
304.25 to a dollar
the black market rate is what the op posted

That is not official rate, learn the differences between parallel market/black market (N485), BDCs (N399, CBN stipulated) and Interbank market (305.25).

The parallel market contributed the most to the economy, hence, its relevance.

The Nigerian Naira improved against the US dollar at the parallel market during the Christmas celebration as businesses wind down on their demands for the greenback.

The local currency appreciated from N492 it traded on Wednesday to N485 on Friday.

The dollar scarcity continued to weigh on the Naira value as businesses and investors were unable to create enough jobs to meet the growing Nigeria population, leading to over 1.7 million jobs lost in the last 9 months, according to the National Bureau of Statistics.

Foreign exchange experts have said the continuous dip in the Naira value is as a result of limited forex liquidity in most segments of the foreign exchange market.

While a few analysts have projected an improvement in the nation economic situation in 2017, following OPEC successful production cut consensus.

A foreign exchange research analyst at Investors King, Samed Olukoya has said, “The nation may not fully benefit from the surge in global oil prices if it fails to curb the persistent attack on its oil facilities and get its output to 2.2mbpd as stipulated in its proposed 2017 budget.”

“Currently, oil output stood at 1.7mbpd after reaching as low as 1.4mbpd in August. The country has not produced at 2.2mbpd since the militant commence attacks on the nation oil facilities 7 months ago, this puts the feasibility of 2.2mbpd in 2017 in question,” he added.

http://investorsking.com/naira-improves-n485-us-dollar/

Coldfaya:
Governor serves for 4-8years gets yearly pension of N50MM which is paid promptly.

Teacher/civil servant serves for 35 years, gets 20k pension which is still not paid regularly.

this is not about Delta state alone but about All States in the federation. how politicians in Nigeria have put us inside bottle and we still keep smiling marvels me walahi.

ayam tired. Merry Christmas

This is a very valid point, both the salary and fiscal structure need to be reviewed. Even in the 2017 budget, N50 billion was budgeted for tertiary institutions, while about N52 billion was budgeted for senate in the same year.

The harsh economic situation in the country has thrown 1.7 million Nigerians into the job market in nine months, a report from the National Bureau of Statistics has indicated.

The unemployment report, which was obtained on Friday, covered January to September this year.

Specifically, the report showed that the number of unemployed Nigerians rose from 9.48 million at the beginning of the year to 11.19 million by September ending.

The report also indicated that while the number of those employed rose marginally from 69 million at the beginning of the year to 69.47 million by September ending, the labour force population rose by 2.18 million from 78.48 million to 80.66 million.

The report said that unemployment was highest for persons in the labour force between the ages of 15-24 and 25-34, representing the youth population in the labour force.

For instance, it said the unemployment rate was highest for those within the ages of 15 to 24, rising from 21.5 per cent in the beginning of the year to 25 per cent as of September ending this year.

For the 25 to 34 age group, the unemployment rate, according to the NBS report, increased from 12.9 per cent at the beginning of the year to 15 per cent as of the end of September.

It noted that unemployment and underemployment were higher for women than men in the third quarter of 2016.

For instance, it said while 15.9 per cent of women in the labour force were unemployed as of the third quarter ending this year, a further 22.9 per cent of women in the labour force were underemployed during the period.

On the other hand, the report said 12 per cent of males were unemployed in the third quarter of 2016, while 16.7 per cent of males in the labour force were underemployed during the same period.

“Given that the nature of rural jobs is largely menial and unskilled, such as in agriculture and the likes, unemployment is more of a concern in urban areas where more skilled labour is required.

“The unemployment rate in the urban areas was 18.3 per cent compared to 11.8 per cent in the rural areas, as the preference is more for formal white collar jobs, which are located mostly in urban centres,” the report said.

Meanwhile, financial experts have warned that the huge preference for imported items by many Nigerians, if left unchecked, could worsen the unemployment situation.

The Acting Director, Trade and Exchange Department, Central Bank of Nigeria, Mr. Woritka Gotring, said the problem could be better managed with the patronage of made in Nigerian products.

He said the resilience of the informal sector was what had been reducing the impact of the economic crisis on Nigerians.

Gotring said if not for the resilience shown by the informal sector where a lot of people were engaged in various economic activities, it would have been very difficult to manage the economic crisis.

He said despite the fact that a lot of people in the informal sector were employed in one form of economic activity or the other, the infrastructure gap in the country was limiting the potential of the sector.

In order to enable the country to conserve its foreign exchange, he called for policy consistency that would encourage capital flows and promote local production, fiscal discipline, enhancement of local manufacturing capacity and import substitution.

Gotring said, “Foreign exchange rate is one of the most important means through which a country’s relative level of economic health is determined.

“The slump in global oil prices has hit Nigeria hard plunging the country into recession. It is evident that the economy is going through tough times with a decline in inflows and continuous demand pressure on foreign exchange arising from high import bill.”

Also, the President, Abuja Chamber of Commerce and Industry, Mr Tony Ejinkeonye, called for an aggressive diversification of the economy to reverse the unemployment situation in the country.

He said aggressive diversification of the economy through agriculture and solid minerals was vital as it would help to create more jobs for the people and reduce the level of poverty in the country.

http://investorsking.com/1-7-million-nigerians-became-jobless-in-nine-months-nbs/

The pioneer Chairman of the Economic and Financial Crimes Commission has been listed as a key witness against a former Governor of Delta State, Mr. James Ibori, who the Federal Government is attempting to repatriate from the United Kingdom.

Ribadu had in an affidavit accused Ibori of giving him $15m in 2007 so that the EFCC boss would not initiate a case against him.

After receiving the cash, however, Ribadu entered it into evidence after which it was kept in the vault of the Central Bank of Nigeria.

Ribadu had said, “Ibori approached me with $15m to stop his investigation.

The money was brought in sacks. I called my people because the money was in big bags, which two people could not carry and we deposited it in the CBN as evidence against him.”

In July 2012, the EFCC approached a Federal High Court in Abuja, requesting for a final order forfeiting the $15m Ibori bribe which had been in the vaults of the CBN for more than five years to the Federal Government as unclaimed proceeds of crime.

Justice Gabriel Kolawole on October 25, 2013, awarded the Federal government ownership of the $15m Ibori bribe which is the subject of legal tussle between the EFCC and the Delta State Government.

Justice Kolawole said that in the final analysis, “the applicant’s application to make a final forfeiture order succeeds and the said sum of $15m is hereby forfeited to the first applicant, that is, the Federal Government who shall take steps to capture it in its earnings of the Federal Government of Nigeria in its 2012/2013 fiscal year and shall administer the funds to address specific needs that will be beneficial to a greater number of the citizenry.”

When asked to react to information available to Saturday PUNCH that the Attorney General of the Federation had listed him among the Federal Government’s list of witnesses against Ibori, Ribadu said, “I am not aware. But if I am asked to testify, I will. But like I told you, nobody has contacted me.”

In a related development, the EFCC is expected to amend the 170 charges brought against Ibori in 2008 in order to avoid a case of double jeopardy.

The charges will be attached to an application for mutual legal assistance which will be sent to the UK government

The ex-governor, who spent four years in a UK prison, was released on Wednesday. Some of his supporters had also kicked against attempts by the Federal Government to arraign him in Nigeria next year, insisting that it would be unjust for him to be tried twice for the same crime.

A source at the EFCC, however, said, “Ibori’s alleged crimes are many. He was convicted on 10 counts of money laundering and conspiracy to defraud.

“He can be charged with offering gratification to a public officer in order to refrain from acting in the exercise of his official duties regarding the investigation of the petition against him. This is not double jeopardy.”

http://investorsking.com/15m-ibori-bribe-efcc-lists-ribadu-key-witness/

The naira is seen depreciating further and may hit the 500 mark to the United States dollar at the parallel market next week as the greenback scarcity persists and the Central Bank of Nigeria cuts supply to foreign exchange operators.

The local currency was trading around N495 to the dollar on the black market on Thursday, compared to 485 per dollar last week due to dollar shortages, traders said.

The naira was quoted at 310.5 to the dollar on the official interbank window on Thursday by commercial lenders.

“There is an acute shortage of dollars in the market because of supply being slashed by half to Bureau de Change operators from international money transfer agents, pushing the naira down,” one trader said.

The BDC operators are now getting $8,000 each per week from Travelex against the usual $15,000 each per week.

The naira had tumbled against the dollar to 490 on Monday from 487 last Friday, as acute shortage of the greenback continued to batter the economy and the country’s foreign exchange markets.

Before falling to 487 last Friday, the local currency had consecutively closed flat at 485 for four days in the previous week.

The severe shortage of the dollar has put the naira under persistent pressure at both the official and parallel forex markets.

The global crash in the prices of crude oil, Nigeria’s main forex earner, has brought untold hardships on Nigerians.

Economic and financial experts said unless the lingering dollar supply problem abated, the volatility in the exchange rate and the consequent economic challenges might continue.

“The challenge with the forex market is still the supply issue; price (exchange rate) is determined by the interplay of demand and supply,” a currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, had said.

Economic and financial experts expect the naira to weaken further against the dollar as the Christmas holiday begins this week.

They also argued that the crackdown on the parallel market forex traders and the persistent scarcity of the greenback would make further weakening of the local currency inevitable.

A few weeks ago, the naira closed flat at 470 against the greenback over a period of over a week.

The naira had plunged to 470, down from 455 on the back of a fresh dollar shortage at the official and parallel forex markets.

Dollar shortages have caused many companies to halt operations and lay off workers, compounding an economic crisis exacerbated by the fall in global prices of oil, which accounts for over 70 per cent of Nigeria’s budget revenue.

The CBN has struggled to support the naira as the country’s external reserves continue to fall.

Meanwhile, the currencies of Uganda, Kenya and Zambia are seen trading sideways in the week to next Thursday as most investors closed positions ahead of the end of the year, according to Reuters.

http://investorsking.com/forex-scarcity-naira-may-hit-n500dollar-next-week/

chiefkpokp:
Can i direct you to ask google this question...... so that you get multiple answers from google... who is naira4dollar?........

Is something wrong with you? He referred to me as naira4dollar, that was why I asked him to clarify.

wowmenow:
Please ask him

some of us have done business in millions with him

i will never keep quiet and allow this people to ridicule successful business

if the op is sure what he is doing he should go naira4dollar office and resolve it

I just want to be sure he understand how the business works and numerous risks associated with it. To play a mediate where you lack absolute experience is wrong.