In the news: CBN sees further growth in economy

In the news: CBN sees further growth in economy

Punch

NNPC to shut refineries for maintenance

The Nigerian National Petroleum Corporation will soon shut down three of its four refineries, according to the Group Managing Director, Dr. Maikanti Baru, has said.

BEDC, others sign MoU on 20MW power plant

The Benin Electricity Distribution Plc has announced the signing of a Memorandum of Understanding with Thames Energy Limited and the Delta State Government on the construction of a 20 megawatts power plant in the area.

Food/beverage stocks appreciate by 1.14%, market gains N23bn

Food/beverage stocks soared by 1.14 per cent on Wednesday, thus emerged the top-performing stocks as the Nigerian Stock Exchange capitalization appreciated by N23bn.

Naira weakens to 367/dollar

The naira weakened to 367 per United States dollar at the parallel market on Wednesday, after closing flat at 365/dollar in the past one week.

No lifting from Lagos oil field in Q2 – Report

One of the joint venture partners in Aje field, offshore Lagos, said there was no oil lifting from the field in the second quarter of this year.

The Nation

CBN sees further growth in economy

As the country exits recession, the Central Bank of Nigeria (CBN), said the economy will continue to improve in the days and years ahead.

NBS: Nigeria’s Q2 merchandise exports hit N3b

The National Bureau of Statistics (NBS) said  Nigeria’s total export value stood at N3,102 billion in the second quarter, representing a marginal increase over the first quarter.

Nigeria to undertake over 50% fabrication, integration in IOCs’ projects

About 50 per cent of the fabrication and integration of topsides of the floating, production, storage and offloading (FPSO) vessels of Nigerian Agip Exploration Limited (NAE)’s and Shell Nigeria Exploration and Production Company (SNEPCO)’s Zabazaba deepwater project and the Bonga South West Aparo (BSWA) deepwater project will be done by Nigerians.

This Day

Dangote Cement Confirms Bid for PPC of South Africa

Dangote Cement Plc, which is the most capitalised company listed on the Nigerian Stock Exchange (NSE), confirmed that it plans to acquire the entire share capital of PPC Limited-South Africa’s leading cement firm.

Nigeria to Ban Importation of Dirty Petrol, Diesel December 1

Nigeria, Togo, Ivory Coast and Benin Republic are expected to implement rules banning imports of petrol and other products with high sulphur content from December 1, 2017, after missing earlier deadlines.

Guardian

Oil production dips to 1.3mbd over vandalism, says NNPC

An average of 700,000bpd of crude oil was deferred in 2016 due to pipeline sabotage, this brought Nigeria’s production down to as low as 1.3 million barrels per day from 2.2 million barrels targeted for the period.

Quality credit data management needed to tackle over N2tr NPLs

With over N2trillion of non-performing loans (NPLs) in the nation’s financial services sector, stakeholders have advocated the promotion of effective credit risk operations through the deployment of quality and robust credit data management.

Reuters

Nigeria unlikely to join OPEC cuts before March -oil minister

Nigeria is very unlikely to join OPEC’s cuts in oil production before March, its oil minister said on Wednesday.

Nigeria’s oil production at 1.6 mln bpd excluding condensates –minister

Nigerian oil production, excluding condensates, is running at 1.6 million barrels per day (bpd), the country’s oil minister said on Wednesday.

Nigeria to sell 917.14 bln naira of bills from Sept 14 to Nov 30

Nigeria plans to sell 917.14 billion naira worth of treasury bills between Sept. 14 and Nov. 30, a central bank debt calendar for the fourth quarter showed on Wednesday.

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Source: Blog

In the news: Naira dips to N367 amid dollar scarcity

In the news: Naira dips to N367 amid dollar scarcity

Punch

FG to spend N100bn Sukuk fund on road infrastructure – DMO

The N100bn targeted by the Federal Government from the Islamic bond, Sukuk, will be spent on critical road infrastructure across the country, the Debt Management Office has said.

Budget: Low revenue generation threatens funds release

The Federal Government on Tuesday said that the low revenue generation by its Ministries, Departments and Agencies was affecting the implementation of the 2017 budget.

Arik share value already eroded – AMCON

The Asset Management Corporation of Nigeria has laughed off the suit instituted by shareholders of Arik Air against the Federal Government and Ethiopian Airlines over purported talks to rescue the troubled carrier.

Aiico, Flour Mills, Nestle top losers, market sheds N63bn

Aiico Insurance Plc, Flour Mills Nigeria Plc, Nestle Nigeria Plc, Continental Reinsurance Plc and Linkage Assurance Plc emerged the top five losers at the close of trading on the floor of the Nigerian Stock Exchange on Tuesday, as equities depreciated by N63bn.

Vanguard

Oil price hits $54.25 p/b as OPEC predicts high demand, market stability

The price of crude oil has stabilised at $54.25 as the Organisation of Petroleum Exporting Countries, OPEC, predicted increased stability of the market, yesterday.

FG to award 80% of crude lifting to NNPC

The Federal Government has disclosed its plan to allocate 80 percent of crude lifting to Nigerian National Petroleum Corporation, NNPC Trading, an arm of the Corporation which evolved from the merger of its trading companies.

Militants ask FG to release licenses for 10 modular refineries

Reformed Niger Delta Avengers, RNDA, and nine other militant groups have called on the Federal Government to issue 10 licences to the Host Communities of Nigeria, HOSTCOM, for the take-off of modular refineries in the Niger Delta.

Nigeria oil will no longer be profitable soon – Osinbajo

Vice President Yemi Osinbajo, yesterday in Ondo State declared that the country’s oil will no longer be profitable in no distant future.

This Day

FG, States’ Public Debt Stock Hits N19.6tn

Nigeria’s public debt stock for both the federal government and the states as at June 30 stood at N19.63 trillion, a report by the Debt Management Office (DMO) has revealed.

States Netted N820.7bn in IGR in 2016

Internally Generated Revenue (IGR) of most states in Nigeria rose by 20 per cent to eventually settle at N820.7 billion in 2016, despite the significant contraction in the economy, the Nigeria Governors’ Forum (NGF) disclosed Tuesday in Abuja.

Guardian

Discos blame government for rejection of allocated electricity

The electricity distribution companies have blamed the Federal Government for their rejection of loads allocated to them, a situation that is worsening the poor power supply in the country.

Nigeria requires $16.5bn to achieve 40bn barrels oil reserves target

To achieve the set target of 40 billion barrels crude oil reserves by 2020, the hydrocarbon industry will require between $13 and $16.5billion over the next five years, the Chief Operating Officer, Gas and Power, Nigerian National Petroleum Corporation (NNPC), Saidu Mohammed, has said.

DPR strategises to recover outstanding FG’s revenues

The Department of Petroleum Resources (DPR) is set to roll out some digitalization programme to fully automate all critical operations of the organization, enhance efficiency of all its regulatory deliverables and accelerate recovery of all outstanding revenues due to government.

Operators lose 4m subscribers in one month

Although the telecommunications sector added about N1.5trillion to Nigeria’s economy in the second quarter (Q2), growth of the service providers however contracted.

The Nation

Naira dips to N367 as dollar scarcity hits BDC

The value of the naira against the dollar is declining as bureaux de change (BDC) operators say the US currency is getting scarce in the parallel market.

Why Nigeria’ll resist oil cut – Kachikwu

Nigeria will resist any attempt to curb its oil production, the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has said.

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Source: Blog

CBN’s Volte-face narrows FX markets premium

CBN’s Volte-face narrows FX markets premium

In our H1 17 Strategy Report, we noted that the CBN could maintain its hard peg on the naira at N305/$ as higher oil receipts and proceeds from FG’s planned external borrowings bolster FX reserves. Unsurprisingly, following a strong rise in the nation’s reserves (+17.1% over H1 17 to $30.3 billion), the

CBN raised its dollar sales towards the end of February. This, together with the creation of new FX windows and relaxation of some stringent policies, lowered dollar demand at the parallel market.

Against this backdrop, the premium between the interbank and parallel market contracted to a 20-month low at the end of June even as the once-elusive portfolio flows began to trickle in. Overall, whilst CBN’s stringent FX policies had hitherto been “a kiss of death” to the currency market, which forced turnover to a record low, its eventual liberalisation policies appears to be springing the market back to life.

Fiscal nod hastens FX policy reversal

Following the instating of a N305/$ currency peg at the interbank in September 2016, the naira

held steady fairly around what was prescribed over the first half of the year. At the parallel market however, it remained feebler—falling to a record low of N520/$ in February (December 2016: N490/$) before rebounding in succeeding months. The naira depreciation in the earlier part of the year reflected lower FX liquidity (FX turnover fell to a record low of $1.4 billion in January) as CBN, in response to 2016 shocks to oil receipts, placed emphasis on dollar demand management.

Later on though, following the widening of FX market premium between interbank and parallel market to a post-floatation high of 70%1 and improvement in foreign reserves, the CBN made a U-turn with regards to its currency policies. Particularly, the apex bank created a special FX window for invisibles (i.e. personal and business travel allowance, medicals, school fees), wherein permissible users obtained FX at a concessionary rate of N375/$ which reduced demand pressures at the parallel market. In addition, the CBN relaxed the preferential FX allocation to manufacturing companies and reduced the tenor on its currency forward contracts to 60 days (vs. 180 days previously).

The impact of these measures, as well as a two-fold MoM jump in dollar sales to BDCs to a fourteen-month high of $89 million in February, underpinned a 9.5% MoM appreciation in the naira to N450/$ at the end of February. Interestingly, the policy pronouncement came a working day after the National Economic Council mandated the apex bank to take actions to stem widening parallel market premiums.

The CBN shift also followed the transfer of more executive powers to the Vice President, Professor Yemi Osinbajo, a supporter of greater NGN flexibility relative to the, then, absent President Buhari who opposed naira weakness and advocated for dollar demand curtailment. Overall, the steeper naira gain (+11% MoM to N385/$) occurred in March following an upsurge in CBN dollar sales (doubled MoM to $1.2 billion) and adjustment to the FX offer rate to both BDCs and invisibles FX window to N360/$.

 

View full July 27th Nigeria Strategy Report here

 

 

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Source: Blog

In the news: N4.75tn pension funds invested in FG bonds

In the news: N4.75tn pension funds invested in FG bonds

This Day

NNPC Massively Stockpiles PMS to Sustain Price Crash

A daily record of operations of the Nigerian National Petroleum Corporation (NNPC) has disclosed the corporation’s plans to sustain the petrol pump price crash it started last week with a healthy build-up of stocks.

FG, IOCs Finalise Evaluation of Bids for $13.5bn Zabazaba Deepwater Project

The federal government, Nigerian Agip Exploration Limited (NAE) and Shell Petroleum Exploration and Production Company (SNEPCo) have completed the technical and commercial evaluation of bids for the main packages in the development of the $13.5 billion Zabazaba deepwater oil field in Oil Prospecting Lease (OPL) 245 within 14 months.

FG August N135 Billion Bond Fails with 41.5% Subscription

The federal government’s N135 billion bonds issued by the Debt Management Office in August was 41.5 per cent subscribed as the agency could only raise N56.05 billion from the auction.

CBN Pledges to Sustain Intervention in Forex Market

The Central Bank of Nigeria (CBN) at the weekend assured members of the public of its continued intervention in the interbank foreign exchange market in order to sustain liquidity and stability in the sector.

CBN Enforces Migration of Banks to Electronic Capital Importation Certificate

Desirous of enhancing foreign investment flow into the country, the Central Bank of Nigeria (CBN) has directed banks and other authorised dealers to immediately commence the issuance of electronic Certificates of Capital Importation (eCCI) with effect from today.

Kaduna Electric Dismisses Load Rejection Claim

Kaduna Electric has described as “factually incorrect”, the recent media report attributed to the Transmission Company of Nigeria (TCN) that it was rejecting power allocated to it for distribution to its customers.

Guardian

Financial stocks lift NSE’s turnover by N17.5bn

Heavy transactions in the shares of some banks last week, lifted the volume of shares traded, as a turnover of 887.024 million shares worth N17.450billion was recorded in 16,955 deals by investors on the Exchange.

Poor electricity supply may persist as Discos reject 1000mw daily

It may take a longer time for the country to overcome its electricity supply challenges as the distribution companies (Discos) reject generated energy from power plants.

Fresh pressure on Nigeria over oil production cut as OPEC meets

The pressure on Nigeria to reduce its crude oil production figure of 1.8 million per day is expected to increase as the Organisation of Petroleum Exporting Countries (OPEC) meets on Friday, September 22, 2017 in Vienna, Austria.

Stockbrokers canvass easier access to ASeM Board for SMEs

Capital market stakeholders have urged regulators to make the listing requirements for accessing the Alternative Securities Market (ASeM) less stringent to attract more small and medium enterprises (SMEs) participation on the platform, and grow the primary market segment of the Nigerian Stock Exchange (NSE).

Punch

FG, states borrow N7.51tn under Buhari

The Federal Government under President Muhammadu Buhari and the 36 states of the federation as well as the Federal Capital Territory have borrowed N7.51tn in the last two years, statistics have revealed.

Arik shareholders sue FG, Ethiopian Airlines for N20bn

Shareholders of Arik Air Limited have filed a N20bn suit against the Federal Government and Ethiopian Airlines over recent claims of negotiations between them for the takeover of the airline.

N4.75tn pension funds invested in FG bonds, securities

About N4.75tn of the total funds under the Contributory Pension Scheme has been invested in the Federal Government’s securities.

Vanguard

CBN to step up liquidity mop up as N333bn hit interbank

The Central Bank of Nigeria (CBN) will this week step up its liquidity mop-up in a bid to offset impact of N333 billion inflows into the interbank money market.

Stanbic IBTC attracts N413.62bn capital inflows in H1

Stanbic IBTC Plc facilitated $589.84 million, an equivalent of N216.47 billion, capital inflow into the country in the second quarter, Q2, 2017, ranking it first among financial institutions that imported capital into Nigeria.

The Nation

TCN gets $1b for expansion, others

The Transmission Company of Nigeria (TCN) has secured about $1 billion from multilateral donors, including the government of Japan, to expand and rehabilitate its facilities.

Ship import dips to N319b on forex scarcity

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

Reuters

Venezuela oil minister says inventories still too high

Venezuelan oil minister Eulogio Del Pino on Friday said global oil inventories remain too high and called on OPEC and other producers to review their global output reduction pact in order to support the sector.

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Source: Blog

In the news: FG targets N100bn from Islamic bond

In the news: FG targets N100bn from Islamic bond

Punch

Why Nigerians haven’t felt impact of exit from recession – NBS boss

The Statistician-General of the Federation and Chief Executive, National Bureau of Statistics, Dr. Yemi Kale attributed the non-impact of the exit from recession on the citizens to the structure of the economy, which is still largely driven by oil.

FG offers tax holidays, duty waivers to mining investors

The Federal Government has offered tax holidays and duty waivers on imported mining equipment to foreign investors in the nation’s mining industry.

Budget: FG targets N100bn from Islamic bond, sukuk

The Federal Government will today (Thursday) commence activities preparatory to the issuance of N100bn non-interest bearing Islamic bond, better known as sukuk.

Naira closes at 365/dollar despite CBN interventions

The naira closed at 365 per United States dollar at the parallel market on Wednesday, the same rate it closed on Tuesday despite the Central Bank of Nigeria’s injection of $250m in the foreign exchange market on Tuesday.

Crude oil price rises to four-week high

Oil futures extended a rise on fears of potential damage to the United States oil production from Hurricane Irma, as well as renewed demand for crude from restarted refineries in the Gulf Coast.

Guardian

Guinness, Redstar others lift NSE’s indices by N71b

Following price gains recorded by most blue chip companies, during transactions on the trading floor, the Nigerian Stock Exchange (NSE) closed in an upbeat yesterday, as market capitalization appreciated by N71billion.

Total, Greenville float virtual pipeline to boost domestic gas supply

Total Exploration and Production Nigeria Limited (TEPNG), and Greenville Oil and Gas Limited have floated an initiative that will process raw gas into domestic Liquefied Natural Gas (LNG) to boost power generation and industrialization in the country.

India invests $10b in Africa as Nigeria seeks ICT growth

Through the Indo-Africa trade arrangement, India has facilitated an investment worth about $10 billion to the African Continent in the last few years.

NBS: Stanbic IBTC attracts N413.62bn capital inflow in three months

Stanbic IBTC, a member of the Standard Bank Group facilitated a $589.84m capital inflow into the country, ranking it first among financial institutions that imported capital into Nigeria in the second quarter of 2017.

The Nation

WAPCo’s gas supply dips by 50% as demand falls

Reduced demand, pipeline vandalism and inadequate supply have made gas supplies by the West African Pipeline Company Limited (WAPCo) to drop by over 50 per  cent to 70 million standard cubic feet per day (mmscf/d) from the 150mmscf/d capacity.

Why we okayed $200m outlay from NCIF, by Kachikwu

The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, who is also the chairman, Governing Council, Nigerian Content Development & Monitoring Board (NCDMB), has said the inability of Nigerian oil firms to access funds from banks, at reasonable lending rates, necessitated the approval to disburse $200 million to such firms from the Nigerian Content Intervention Fund (NCI Fund).

BEDC, Thames Energy, Delta seal 20Mw plant deal

Efforts at ensuring that over 200 commercial entities in Ozoro Local Government Area of Delta State benefit from power supply have got a boost as the Benin Electricity Distribution Plc (BEDC) signs a Memorandum of Understanding (MoU) with Thames Energy Limited and the Delta State Government on the construction of 20megawatts (Mw) power plant.

This Day

PZ Cussons Grows Profit to N3.8bn, to Pay N1.9bn in Dividends

PZ Cussons Nigeria Plc yesterday recorded a profit after tax of N3.886 billion for the year ended May 31, 2017, showing an increase of 73 per cent over the N2.129 billion posted in 2016.

FirstBank Partners Visa on Mobile Payment Solution

FirstBank of Nigeria Limited in partnership with Visa has introduced a mobile payment solution – mVisa. This mobile solution allows customers pay for goods and services by scanning a QR code using the FirstMobile App on their smart phones.

Bloomberg

Nigerian Sovereign Wealth Fund Grows to $2 Billion, CEO Says

Nigeria’s sovereign wealth fund stood at $2 billion this month with the investment agency seeking further growth through agriculture and the addition of asset management, its chief executive officer said.

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Source: Blog

In the news: CBN injects $250m to lift naira

In the news: CBN injects 0m to lift naira

Punch

CBN injects fresh $250m to lift naira

The Central Bank of Nigeria on Tuesday injected $250m into the various segments of the inter-bank foreign exchange market, in order to lift the naira against other major currencies.

Exit from recession fails to lift stocks

Despite Nigeria exiting recession on Tuesday, the equities market closed in the red, shedding N35bn.

Naira appreciates against dollar

The Nigerian currency gained N1 to exchange at N364 to the dollar, stronger than N365 posted on Friday, while the Pound Sterling and the Euro closed at N470 and N430.

Buhari, economists, others caution against celebrating Nigeria’s exit from recession

The news that the nation exited its worst recession in 25 years was received with cautious optimism by a cross section of Nigerians on Tuesday, with many economists and analysts saying the 0.55 per cent growth in the Gross Domestic Product in the second quarter was slower than expected.

This Day

 Intel’s Volpi Steps Up Battle Against Wale Tinubu over Control of Oando

One of the founders and majority shareholder of Intels Nigeria Limited, operator of the oil and gas logistics terminals in Onne, Rivers State and Warri, Delta State, Mr. Gabriele Volpi, has stepped up his battle against the group chief executive officer of Oando Plc, Mr. Wale Tinubu, over control of Oando, citing alleged mismanagement, cooked books and huge debts.

ETI Secures $250m Loan Facility to Boost Operations

Ecobank Transnational Incorporated (ETI), the Lome, Togo-based parent company of the EcobankGroup Tuesday signed a five-year senior unsecured loan facility of $250 million from Deutsche Bank AG.

 BUA Group Invests $2bn in Nigerian Cement Industry

BUA Group, one of Nigeria’s largest conglomerates, has invested about $2 billion in the Nigerian cement industry with capacities in excess of over 12 million tonnes per annum.

CPS: 21 PFAs Generate N6.5tn Assets in 12 Years

The 21 Pension fund Administrators operating in Nigeria, between 2004 and 2017 generated a total of 7,592,157 contributors who contributed N6.6 trillion assets.

FG Plans New Model to Equalise Gas Prices across Nigeria

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu disclosed that federal government would work out a new gas pricing and supply model – likely to be the type adopted by it to ensure equal pump price for petrol across Nigeria, to get gas to all parts of Nigeria, especially the northern states.

Vanguard

AMCON denies ceding Arik to Ethiopian Airlines

The Asset Management Corporation of Nigeria (AMCON) has denied reports that it was negotiating with Ethiopian Airlines to manage Arik Airline.

DISCOs inability to transmit 6500mw threatens FG 2020 targets

With the increased demand for electricity fueled by population growth and rising urbanization in the country, stakeholders in the power sector have said that the Distribution Companies, DISCOs, lack the capacity to wheel 6500 megawatts (mw) of electricity transmitted to them.

Dangote invests N400bn in sugar backward integration projects

Dangote Group has so far invested over N400 billion in sugar backward integration projects under the Nigeria Sugar Master Plan, (NSMP, being implemented by the National Sugar Development Council, NSDC, to make the country self-sufficient in sugar production.

Guardian

Egbin to construct N432 billion power plant

Egbin Power Plc has unveiled plans to invest $1.2 billion (N432 billion) for the construction of a 1,575 Mega Watts plant in Nigeria. The plant which is expected to be completed by 2020, is expected to increase the supply of electricity to homes and businesses in the country.

Reuters

Nigeria’s cabinet meeting cancelled for second time since Buhari’s return: Nigeria has cancelled its weekly cabinet meeting for the second time since President Muhammadu Buhari returned from three months of medical leave in Britain.

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Source: Blog

Trade Balance to Survive Muddy Waters

Trade Balance to Survive Muddy Waters

Export sustains trajectory on higher crude prices…

Nigeria’s trade balance extended its surplus position into a second consecutive quarter in Q1 17 (N719 billion), following another sturdy rise in exports (+109% YoY to N3.0 trillion) relative to a 35% increase in value of imports.1 According to NBS, it took sharp increases (average of 142% YoY) across “Petroleum oils and oils obtained from bituminous minerals, crude” and “Natural gas, liquefied” to keep exports on its strongest growth trajectory in over thirteen quarters. Specifically, reflecting an OPEC induced rejig in global oil prices (+53% YoY to $51.18 per barrel) and naira devaluation of 55% YoY to N305, crude oil exports more than doubled YoY but saw its overall attribution largely unchanged at 78% of headline export in Q1 17 (vs. 77% in Q1 16) due to similar jumps in other export components.

The broad-based rise in exports also reflected sustained scamper for attractive greenback in the review period. Notably, the sharp increase in prices and pass-through from naira down-leg was enough to mask fallouts from a 14% contraction in domestic crude production in the review period.

In terms of Nigeria’s trade relations, available data suggests that India was Nigeria’s most important export partner in Q1 17, with the Asian tiger single handedly accounting for 22.2% of Nigeria’s overall exports. Precisely, India reportedly consumed 30% of Nigeria’s crude exports over the first three months of 2017 while also standing out as the fifth largest consumer of Nigeria’s Agricultural exports in the review period.

Elsewhere, United States and Spain accounted for another 13.9% and 10.8% of overall exports, with consumption from both countries accounting for 22% of Nigeria’s non-crude exports (vs. 15% in the corresponding period of 2016) and making up for their slightly narrowing relevance in the consumption of Nigeria’s crude. To the latter point, we note that joint consumption attribution for the countries shrank 2pps YoY to 25% in Q1 17. Within the African region, Nigeria also sustained its export push with South Africa leading the way with a 91% YoY rise in its demand for Nigerian crude.

View full July 26 Nigeria Strategy Report here

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Source: Blog

In the news: Naira appreciates to N366/$

In the news: Naira appreciates to N366/$

Punch

FG awards $5.8bn Mambilla power plant contract

The Federal Executive Council on Wednesday approved the contract for the engineering work of the Mambilla Hydro Electric Power Plant in Taraba State at a sum of $5.792bn.

Lagos to build 57 computerised vehicle inspection centres

The Lagos State Government says it plans to build 57 state-of-the-art computerised vehicle inspection service centres for testing vehicles before being issued road worthiness certificates.

Oil industry stakeholders await Egina FPSO integration

Stakeholders in the Nigerian oil and gas industry are awaiting the integration of the Egina Floating Production Storage Offloading facility in the country as the project nears completion.

This Day

 Fidelity Bank Grows Profit after Tax by 66% to N9bn in Six Months

Shareholders of Fidelity Bank Plc should expect a bounteous harvest at the end of the current year given its impressive performance for the half year (H1) ended June 30, 2017.

 Allianz Buys Nigerian Insurer for $35m

Germany’s Allianz plans to pay $35 million for 98 per cent stake in Nigerian insurer, Ensure Insurance, in a push for growth in Africa, where many people are uninsured..

Japanese Miniso’s $1.5bn International Investment Enters Nigeria

The federal government’s quest for foreign direct investment (FDI) has yielded yet another positive boost as Miniso, a top Japanese designer brand and market leader, has opened its world-class outlets across the six high-brow shopping malls in Lagos.

Vanguard

BoI, Oxfam partner to empower 4,000 farmers

The Bank of Industry (BoI) has signed a partnership agreement with Oxfam to disburse N200 million to empower about 4,000 farmers in Nasarawa, Benue and Plateau States, under the Federal Government’s Government Enterprise and Empowerment Programme (GEEP).

Naira appreciates to N366/$

The Naira yesterday appreciated for the second consecutive day to N366 per dollar in the parallel market, even as investors traded $84 million in the Investors and Exporters (I&E) window.

Guardian

FG begins disbursement of N5billion loan for miners

Despite the limited access to finance, and illegal artisanal mining activities, federal government has commenced disbursement of N5 billion to artisanal and small-scale miners in the country.

Bloomberg

Chinese Oil Giant Sinopec Probed by the U.S. Over Nigeria Bribery Allegations

U.S. authorities are investigating China Petroleum & Chemical Corp. over allegations that the state-controlled oil producer paid Nigerian officials about $100 million worth of bribes to resolve a business dispute, according to people familiar with the probe.

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Source: Blog

Nigerian GDP: Recovery Signal Speaks

Nigerian GDP: Recovery Signal Speaks

Non-oil rebound cascades to slower contraction in Q1 17

Extending the trend from 2016, when output shrank 1.5% relative to 2015—encapsulating four quarters of YoY contraction, real GDP contracted 0.5% YoY in the first quarter of 2017. However, this reading

was not only an improvement from the -1.3% YoY contraction registered during the preceding quarter but was also the smallest contraction since the trend began. The improvement appears to buttress our view, premised on PMI-strengthening, and as expressed in our H1 17 strategy report, that Nigeria might be coming out of recession in Q2 17.

Drilling to the underpins of the recovery, whilst oil GDP recorded a narrower contraction (YoY: Q1 17: -11.64%; Q4 16: -17.7%), the lowest since Q2 16, an outright recovery in non-oil GDP (YoY: Q1 17: +0.7%; Q4 16: -0.3%) proved the boost. The growth in non-oil was driven by Agriculture (Crop Production: 3.5% YoY in Q1 17), Manufacturing (Q1 17: 1.4% YoY) and Services (Q1 17: 1.0% YoY).

Oil GDP sustains recovery as brass pipeline comes on stream

The second consecutive quarter of narrower contraction in oil GDP achieved in Q1 17 reflects 3.9% QoQ recovery in oil production to 1.83mbpd (Q1 16: 2.02mbpd). The production boost was largely owed to the lifting of force majeure on Brass terminal (120kbpd) in February 2017 as well as lower pipeline vandalism (-67% on average from 2016 to 2017). On the latter, we think FG’s conciliatory efforts have calmed the activities of Niger-Delta militants, who are set to receive higher amnesty payments in 2017 (over twofold YoY to N77 billion) going by the recently passed budget. Regardless, the lower production relative to corresponding quarter in 2016 continues to hinge on the force majeure on Forcados pipeline (330kbpd) which lingered over the review period alongside temporary shut-in of the Nembe Creek Trunk Line causing a shut-in planned production of 232kbpd in March 2017.

Recovery in ICT shoves Services GDP out of recession.

Starting off with the largest component of non-oil GDP, Services recorded positive growth (1% YoY) after three consecutive quarters of contraction, on the back of 2.7% YoY acceleration in ICT sub-sector (33% of Services). The improvement in ICT largely reflected activities in the Telecommunications sub-sector where the 3.12% YoY growth in Mobile GSM subscribers to 152 million people and incorporation of 98 thousand subscribers from Voice over Internet Protocol technology (VoIP) from NTEL and Smile supported a 2.9% YoY growth. Strong growth was also recorded in smaller sub-divisions such as Transport (+10.5% YoY) and Arts, Entertainment & Recreation (+11.7% YoY) which more than offset sustained contraction in Real estate (-3.1% YoY).

Though the latter contracted for a fifth consecutive quarter, it maintained the theme of improvement by shrinking at a slower pace and with ancillary sectors—building & construction and cement—improving after successive quarters of downtrend, outlook appears brighter. Nonetheless, sluggishness lingered across all its sub-segments in the current period – urban office rentals remained under pressure as shrinking corporate profitability reduced take-up.

 

View full July 25th Nigeria Strategy Report Here

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Source: Blog

In the news: $14.1b forex deals attract investors

In the news: .1b forex deals attract investors

Punch

98% of documents in crude sale transactions fake — NNPC

The Nigerian National Petroleum Corporation on Sunday announced that about 98 per cent of all documents involved in the sale of crude oil were fake.

Exchange rate: Foreign airlines raise fares

The international airfares from Lagos to various destinations across the globe have recorded a further increase following the announcement of a new dollar exchange rate for the sale of air tickets.

Insurance stocks: Operators, NSE move to attract investors

Operators in the insurance industry and the Nigerian Stock Exchange are strategizing on how to improve the value of insurance stocks and attract investors to the industry.

Naira closes at 370 as dollar supply declines

The naira closed at 370 to the United States dollar on Friday, as dollar supply from the Central Bank of Nigeria continued to wane.

This Day

 Shell, Chevron Unaware of NNPC’s Plan to Extend $1bn Gas Pipeline to Cote d’Ivoire

Shell and Chevron, which are major shareholders in the Chevron-run West African Gas Pipeline Company Limited (WAGPCo), owners of the $1 billion West African Gas Pipeline, are not yet aware of the plan by the Nigerian National Petroleum Corporation (NNPC) to extend the 678-kilometre pipeline to Cote D’Ivoire.

 Nigeria’s E-commerce Market Value to Hit N15.45tn in 10 Years

Currently worth around $13billion (about N4.01trillion), experts in the Nigerian financial service sector have estimated that Nigeria’s e-commerce market value could rise to $50billion (N15.45trillion) over the next decade.

Market Remains Bearish on Continuing Profit-taking

After five weeks of positive performance, the market had the previous week, the market succumbed to the pressure of profit taking, leading to the Nigerian Stock Exchange (NSE) All-Share Index to close   3.35 per cent  lower, despite the release of improved results for the half year results by Access Bank Plc, United Bank for Africa Plc and Ecobank Transnational Incorporated, profit taking continued last week.

CBN Pumps $9.96bn into FX Market in Six Months, Attains Stability

This has helped to ease pressure on Nigeria’s forex market, which prior to the action by the regulator had been pummeled by speculators.

Caverton Shares Rise 16% as Investors React to Chevron Contract

Investors last week renewed demand for the shares of Caverton Offshore Support Group Plc (COSG), following the news of award of a contract to it by Chevron Nigeria Limited (CNL).

The Nation

$14.1b forex deals attract investors

Foreign investors’ confidence in the economy has been on a rise as a result of the $14.1 billion combined foreign exchange (forex) deals from the Investors’ & Exporters’ FX Window – I&E FX Window- and the Central Bank of Nigeria’s (CBN’s) weekly dollar interventions.

LCCI: Why refineries, others are not attracting investments

The Lagos Chamber of Commerce and Industry (LCCI) has identified inappropriate and unimplemented policies, as well as unfriendly business environment, as part of the reasons the refineries and other sectors of the economy have failed to attract the required investments.

Vanguard

Unilever Nigeria Plc: Investment gains in Rights Issue defy bear run

Despite recent profit takings in the equities investors in the Rights Issue of Unilever Nigeria Plc are still on massive discount of over 27 per cent following the price surge in the equity shortly after the offer opened last month.

Cost of funds to fall as N193bn inflow is set to boost interbank liquidity

The interbank money market will, this week, receive liquidity boost of N193 billion from maturing treasury bills prompting further decline in cost of funds.

Reuters

Nigeria overnight lending rate drops on liquidity injection

Nigeria’s overnight lending rate dropped to 12 percent on Friday after spiking to almost 100 percent on Wednesday due to a liquidity squeeze as lenders paid for hard currency and treasury bills purchased from the central bank.

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Source: Blog