₦airaland Forum

Adesiji77:
At least, Naija is leading in this one...

The Corps Marshal of the Federal Road Safety Commission (FRSC), Mr. Boboye Oyeyemi, wednesday said the commission has generated N1.6 billion from fines through its patrol activities between January and November 2016.

Oyeyemi, who acknowledged that FRSC is not a revenue generating agency, added that the money was remitted directly to the consolidated federation account In a statement made available to journalists in Abuja, the FRSC boss expressed appreciation to members of the Senate Committee on Federal Character and Inter-governmental Affairs for their support in the timely release of its 2016 appropriation.

According to him, the timely release of funds has led to enhanced logistic empowerment for the commission as more patrol vehicles, ambulances and tow trucks were purchased to the operational fleet of the FRSC. Oyeyemi also admitted that the overhead cost for 2016 budget has been fully released, while the capital releases were being effected based on availability of funds He promised to would work hard to ensure improved service delivery in order to restore safety on Nigerian roads. In his remark, the Chairman of the Committee, Senator Tijani Kaura, admonished staff of the FRSC to ensure their personal safety during patrol to avoid being knocked down by reckless drivers.

Kaura, however, said the committee was disturbed by reports of patrol men being hit by reckless drivers while performing their legitimate duties on the highways, warning that such dastardly acts by the drivers are unacceptable to members of the National Assembly. The chairman stated that members of the committee were on oversight functions to the FRSC headquarters in Abuja to ascertain the level of implementation of the 2016 budgetary appropriations to the commission and to familiarise themselves with its operations with a view to determining areas of further legislative support.

The Niger Delta Avengers militant group said it has bombed three oil pipelines in southern Nigeria, an attack it said would lead to a production loss of 300,000 barrels per day in the OPEC-member nation.

Attacks on pipelines by several militant groups have slashed Nigeria’s oil production helping to tip the country into recession as it struggles to adapt to the low price of crude globally.

The Niger Delta Avengers, blamed for a wave of such attacks since the start of the year, said the latest bombing was to register its displeasure with way the government was handling grievances in the oil region.

“At about 11.45 pm November 15, 2016, our Elite Strike Team 03 struck Nembe 1, 2 and 3 truck line operated by Agip, Oando and Shell with supply capacity of 300,000 barrel per day to Bonny export terminal in Bayelsa State,” the NDA said in a statement late Tuesday.

“We are only reiterating our strong resolve that time is running (out) against the Nigerian government, that there is doom ahead,” it said.

“The Nigerian government needs our cooperation more than we need the government as it concerns the extraction of the crude oil and hydrocarbon resources in our God-given land,” it said.

There was no immediate confirmation of the attacks from the government.

Nigeria has deployed troops to end the renewed insurgency in the region and has initiated peace talks with the oil rebels.

But divisions between rival militant groups appear to be making it hard for the government to strike a lasting peace deal.

A 2009 amnesty deal with militants helped end sabotage, but the violence reignited after President Muhammadu Buhari’s cash-strapped government temporarily ended amnesty payments and charged a prominent warlord with graft.

AFP

The Nigerian National Petroleum Corporation (NNPC) says it has paid the sum of Eight hundred and twenty Seven billion Naira to the Federation Accounts Allocation Committee (FAAC) in 12 months.

In its monthly financial report for September released in Abuja, the corporation said the payment was made between Oct. 2015 and Sept. 2016.

“A total of eight hundred and twenty seven billion naira was paid to FAAC in the past 12 months.’’

It added that NNPC, in the months under review, lifted 243 million barrels of Crude oil for the Federal Government out of which 720 million was fiscalised.

The report said that total gas sent to power between Oct. 2015 and Sept. 2016 stood at 208 BCF.

“2,507 was the average Generation from Gas Fired power plant .’’

The report said that a total of 10.4 billion litres of Premium Motor Spirit was supplied by NNPC in 12 months out of which 11.8 billion litres of white production were sold.

According to the report, NNPC has been operating in a challenging environment which limits its aspiration to profitability.

“The Corporation can undeniably attain lofty heights with the support of Nigerians, especially in areas of Security and Infrastructural integrity.

“With restoration of NPDC production, NNPC can indeed post more impressive results,’’ the report said

NAN

Deposit Money Banks’ (DMBs) commitment of over- N3trillion in the energy sub-sector is discouraging the financial institutions from further financing of energy and power projects.

Energy Market and Rates Consultants Country Director, Mrs. Rahila Thomas, said this while enumerating the challenges confronting the power sector in Lagos, adding that, the huge exposure of banks to the power sector has made it difficult for operators to access funds.

She said revenues generated from the sector were substantially lower than expected as a result of factors such as inbuilt deficit in revenue due to tariff sculpting, low generation, low revenue collection due to unwillingness of power consumers to pay, high differential in exchange rate now compared to when the sector was privatised, and gas supply deficit, among others. These factors, Thomas said are responsible for the liquidity crisis confronting the power sector.

She noted that the sculpting of tariff under the multi-year tariff order (MYTO) methodology requires the distribution companies (DisCos) to operate in such a way to enable them recover their losses in future years, adding that with the overstretch space for recovery, customers don’t pay for consumption.

On low generation, she noted that the performance agreement the investors signed with government on takeover of the power firms, and with which they went to bank to seek loans, was that power generation would be increased to between 5,000megawatts (Mw) and 7,500Mw by last year, but average generation has remained at 3,000Mw.

She said at the time of takeover, exchange rate was N197 to a dollar but today it is over N350. Therefore, the cost of buying equipment and gas to power the plants have increased while price of power has not changed appropriately.

She said all the agreements the investors entered with the government on handover of the power firms, the government has not fulfilled any, adding that the companies have been operating at a loss for the past two and half years.

Thomas also said if the government had fulfilled its own part of the agreement, the generation plants have over 10,000Mw output capacity.

According to her, the privatised power stations (successor companies) have capacity to generate 5,155Mw, while the power plants built under the National Integrated Power Project (NIPP) can generate 3,926Mw, and on-grid independent power plants (IPPs) such as Ibom Power, AES, Agip’s Okpai power plant and Shell’s Afam V1 can generate 1248Mw. There is also 244Mw capacity from off-grid IPPs such as Rivers Trans Amadi and Aba Power, power plants that can generate 1,635Mw are in the works, she added.

HtwoOw:
Well that's good to know


Some people here said forcing traders will make it scarce and naira will fall even more


Let's thank God that the President of the nation does not take advise from nairaland

richidinho:
Yeah true
Jst drive pass that place now

simpleworld:
why please

An economist and an analyst on Wednesday said the election victory of Donald Trump as U.S. president-elect would not affect the Naira.

They told the News Agency of Nigeria (NAN) in telephone interviews that Nigeria should focus
more on policies that would revive the economy.

Mr Okechukwu Unegbu, former Managing Director of Citizens Bank, said “the crash of U.S. markets before the announcement of the U.S. presidential election result was pelted.

“On our Naira, we only need to look inwards, we can solve our problems not foreigners.

“Trump’s win or otherwise cannot help the Naira. Our policies matter a lot. Observing the elections and the markets, you will see that the markets went down because of fear.

“Also, he cannot deport immigrants like he has been saying because there are laws.”

An analyst who would not want to be identified also said that “when the election results started trickling in, the American markets crashed but after he was named president-elect, it stabilised.

“For now, people are afraid, scared of what policies Trump may bring but in the long run,
things will stabilise.

“On what his win portends for our naira, it may look like it is jerking up for now but the American presidency has no direct relation with the stability of the Naira.”

It will be recalled that the Wall Street share markets went flat after Donald Trump’s election victory despite expectations of heavy falls.

The S&P 500, Dow Jones, and Nasdaq stock indexes were little changed after the first hour of trading.

The pre-open future markets forecast dramatic sell-offs when Mr Trump’s lead became clear overnight.

Share traders had expected Hillary Clinton to beat Mr Trump to become the next US president on the back of polling forecasts.

UK and European stock markets have made back early losses, with money flowing into safe haven stocks, gold and currencies including the yen.

NAN

Pavore9:
I am not presently on ground but through family l am into local production where the finished goods is being exported and earning Forex. As a citizen l have inspired many into Agriculture as the Agric section of NL can attest. Many who hitherto had no access to land have been growing crops in used sacks with good harvest courtesy of my knowledge transfer to them.....l am productive Citizen.

Pavore9:
In as much we need FDI, what stops us for example setting up a cottage processing centres where with a machine that is[b] less than N200k[/b] (which is not up to what some Nigerians spend on phones)that requires no electricity but will extract oil from tonnes of Avocado that wastes year in,year out instead importing avocado oil? Money is lying fallow amongst the political elites which is not being economically engaged. It is high time we engage what is around us and not think redemption will come from outside!

Pavore9:
A better Naira should be tied to productivity not to money transfer agents. Local production is very key to a better Naira as we have so much local raw materials that beg for value addition but we have over time imported its finished products.

Pavore9:
How many are getting it easily at N385 because it easily gotten at over N450. Here in Kenya, bank are selling dollar for 104-105 shillings while their BDCs sells at 102 shillings.

Pavore9:
That is why there will always be a wide difference between the "official rate" and what is obtainable on the street.

shadeyinka:
You speak like a real Nigerian economist no offence intended.

The question I asked is like:
If an irresponsible lazy bone discover a stash of Gold in his compound, would his business grow?

We know what this guy would do: he will spend money, he will live in affluence, he will purchase luxuries. In summary, he will appear successful but in reality, he doesn't have the capacity to sustain the sudden wealth he has.

So is the case with Nigeria. Oil becomes $210pb?
1. Naira will appreciate in value: since no more scarcity of forex :
Note: that the economic fundermental hasn't changed
2. GDP will shoot up: largest economy by consumption not by strength.

Bottom line:
A country that depend on importation of more than 80% of what she consumes has a terribly weak economy. Subject to external demand variables.

You spoke about foreign investors and I couldn't help but laugh inside. Why?
No country develops by foreign investors unless such a country is bent on
Stealing Technology, Cloning Technology, Developing Technology etc. Other than that, it is plain robbery.

Example:
MTN is a foreign investment in Nigeria!
Who gains more in terms of Profit ? South Africa!

The profit they make in Naira is transfered to SA in dollars putting more pressures on the Naira( Since we'll have more naira and less dollar in circulation).

There is no economy if Nigeria depend on IMPORT for almost everything: clothes, paper, pins, blades, pencils, ..not to speak of phones, computers, cars etc

I believe you understand my point of view.

Our economic structure is NON EXISTENT!

Pavore9:
What we have now is not even the true value of the Naira.

shadeyinka:
I understand the technical economic mumbo jumbo. Unfortunately, these don't do much on the real economy.

Economy is a factor of Production. Every other thing is speculation.

Let me ask you a fundermental question: if oil price suddenly becomes $210 per barrel, does it imply that our our economy improved?

shadeyinka:
Its no Goodnews. The fundermental of the Naira hasn't changed at all.

The question we should ask is what did the government do to cause the appreciation in Naira value?

If you cannot point to anything major, then whatever you are seeing is just the normal volatility in currency values