Minister of Finance, Kemi Adeosun

Oil sector 2018 Q1 performance still below 10% GDP

By NewsDesk,

A report released by National Bureau of Statistic on performance of oil sector’s contribution to Nigeria’s Gross Domestic Product, has indicated that industry remains below 10 per cent in Q1 figures of the nation’s GDP .

However, the office reported on Monday that the nation’s GDP grew by 1.95 per cent year-on-year- in real terms in the first quarter of 2018, but that the nation recorded some growth in the oil sector during the period, the contribution formed only 9.61 per cent of the total, with the non- oil sector accounting for the rest.

It said that the development had an increase in the daily oil production to an average of 2.0 million barrels per day (mbpd), higher than the 1.95 mbpd in the fourth quarter of 2017.

As gathered from report,  real growth of the oil sector was 14.77 per cent (year-on-year) in first quarter of 2018, representing an increase of 30.37 per cent points relative to rate recorded in the corresponding quarter of 2017.

According to the NBC, quarter-on-Quarter, the oil sector grew by 13.24 per cent in first quarter, 2018 and the growth was up from 8.53 per cent in the first quarter and 7.35 per cent in the fourth quarter recorded in 2017.

“In comparison, non-oil sector grew by 0.76 per cent in real terms during the quarter under review.This was higher by 0.04 per cent point compared to the rate recorded same quarter of 2017 and 0.70 per cent point lower than the fourth quarter of 2017”.

The report showed that the sector’s growth was driven mainly by agriculture (Crop production), financial institutions and insurance, manufacturing, transportation and storage as well as information and Communication.

In it,  the Non-Oil sector contributed 90.39 per cent to the nation’s GDP, lower than 91.47 per cent recorded in the first quarter of 2017 and 92.65 per cent recorded in the fourth quarter of 2017, while in overall, the Nigerian Gross Domestic Product (GDP) grew by 1.95% (year-on-year) in real terms in the first quarter of 2018.

The bureau stated that the figure revealed that a stronger growth compared with the first quarter of 2017, which recorded a growth of –0.91 per cent indicating an increase of 2.87 per cent points, and that compared to the preceding quarter, there was a decline of -0.16% points from 2.11%, NBS said.

It related that quarter on quarter, real GDP growth was -13.40% as oil production estimates for the third and fourth quarters of 2017 have been revised and oil GDP for those quarters have been adjusted accordingly.

According to NBS figures, aggregate GDP for the first quarter stood at N28.4 trillion in nominal terms.

“This performance is higher when compared to the first quarter of 2017 which recorded a nominal GDP aggregate of N26.028 trillion thus, presenting a positive year on year nominal growth rate of 9.36%. This rate of growth is however lower relative to growth recorded in Q1 2017 by -7.70% points at 17.06% but higher than the proceeding quarter by 2.14% points at 7.22%.

NNPC proposes petroleum licenses split, prospecting, production

By NewsDesk,

Pre-planning and proper projection of activities within oil and gas sector, to foresee unprecedented, are the only ways to go, the precaution of which may have led to Nigerian National Petroleum Corporation (NNPC) proposal of splitting of petroleum licences into two components for prospecting and production phases under draft Petroleum Industry Administrative legislation currently before the National Assembly.

Specifically, the proposed split, as aimed, would prevent a situation where operators would sit perpetually on oil acreages and NNPC’s recommendation under PIAB seeks a break up of Petroleum Licence into Petroleum Exploration Licence (PEL) – to prospect for petroleum, while the second component to be known as Petroleum Lease (PL), should be created to cover the production phase to search for, win, work, carry way and dispose of petroleum.

The Group Managing Director, NNPC, Dr. Maikanti Baru, discloed that aside of the posposed split, corporation also pushed for a re-think on duration of licences as recommneded in the PIAB which stipulates initial duration of 25 years for onshore and shallow water petroleum licence and 30 years for deep water and frontier acreages.

At a Public Hearing organized by House of Representatives Committee on the Petroleum Industry Administrative Bill (PIAB), Petroleum Industry Fiscal Bill (PIFB) and the Petroleum Industry Host Community Bill (PIHCB),  NNPC, Baru also proposed five years prospecting licence for onshore and shallow fields and a duration of 10 years for deep offshore and frontier basins.

He also recommended 20 years production lease for onshore and shallow fields as well as deep offshore and frontier basins. The corporation noted that only the production lease period should be renewed for a period not exceeding 20 years.

On the PIFB version of the proposed oil industry law, the NNPC’s boss recommended a three-stage licences regime consisting of: Exploration Licence (EL) – to explore for petroleum on a non-exclusive basis; Petroleum Exploration Licence (PEL) – to prospect for petroleum on exclusive basis; and Petroleum Lease (PL) – to search for, win, work, carry away and dispose of petroleum.

Beyond the clause by clause recommendations, the corporation also advocated for the simplification of the fiscal system for ease of implementation and to ensure progressivity.

It called for expunging all regulatory issues out of the draft legislation to empower the Commission to regulate the industry effectively.

NNPC highlighted the need to introduce and provide clauses that will ensure easy review of provisions of the bill in response to economic, technical and other considerations, while disallowing legislation on issues bordering on contracts.

Chairman of the House Committee, Honorable Abdulrazak Namdas, thanked the NNPC for its contribution, noting that the committee would sift through all the submissions by stakeholders before taken informed decisions on the issues.

Nigerian Q1 importation capital hits over $6M

By NewsDesk,

Despite political pressure mounting across nooks and crannies of Nigeria as 2019 election draw near, the National Bureau of Statistics (NBS) has disclosed that against all odds, Nigeria’s capital importation in first quarter of 2018 was fair for the economy, with $6,303.63 million been recorded for the period.

Through Nigerian Capital Importation for First Quarter for 2018 reported released on Friday in Abuja, the office hinted that the value of capital imported in the quarter recorded an increase of 594.03 per cent, year-on-year and a 17.11 per cent growth over the figure reported in the previous quarter.

It added that the quarter saw a continuous growth in total Capital Importation into the country, making it the fourth consecutive quarterly increase since the second quarter of 2017.

The report indicated that the increase in capital inflow in the quarter under review was driven mainly by Portfolio Investment.

According to the bureau, Portfolio investment grew from 3,477.53 million dollars in the previous quarter to 4,565.09 million dollars.

The report said the amount recorded by portfolio investment accounted for 72.42 per cent of the total Capital Importation during the quarter and that capital importation made up of three main investment types: Foreign Direct Investment (FDI), Portfolio Investment and Other Investments.

It informed that since the second quarter of 2017, Portfolio Investment had been expanding faster than the other two categories, adding that, that Porfolio Investment was the largest component of the capital imported in the first quarter of 2018 at 35 per cent of total capital imported.

“Foreign Direct Investment and Other Investment accounted for 3.91 per cent and 23.67 per cent of total Capital Importation into the country in the quarter under review”.

The bureau reported that FDI stood at 246.62 million dollars, falling by 34.83 per cent from the figure reported in the previous quarter, and growing by 16.67 per cent on a year-on-year basis and that Foreign Direct Investment in Nigeria was still weak when compared to Portfolio Investment and Other Investment, representing only 3.9 per cent of total capital imported.

The office noted that Equity Investment, a sub-category under FDI contributed 246.61 million dollars or 99.9 per cent of FDI during the quarter, while Other Capital under FDI contributed less than 0.001 per cent.

Meanwhile, the report maintained that Portfolio Investment remained the largest component of total capital inflow into Nigeria in the first quarter of 2018, just as it explained total value of Portfolio Investment was 4.565.1 million dollars, which was 1,355.66 per cent growth compared to first quarter, 2017 and 31.27 per cent growth compared to the figure reported in fourth quarter, 2017.

As recorded,  the strong growth of Portfolio Investment was mainly due to the increase in Money Market Instruments which recorded a figure of 3.527.60 million dollars and the development accounted for 77.27 per cent of total Portfolio Investments in the first quarter.

Nestle tops NSE gainers table, Forte oil, others follow suit

By NewsDesk,

The Nigerian Stock Exchange (NSE) table has indicated Nestle was leading gainers’ with N71.10, to close at N1, 493.60 per share.

Besides, Forte Oil followed with a gain of N4 to close at N43.30, while Zenith International Bank added 70k to close at N27.90 per share.

Dangote Sugar was not exempted from the table, with 45k increase to close at N21, while Dangote Flour grew by 35k to close at N13.70 per share.

While the five companies top gainers table, Nigerian Breweries appeared to be losers’ leader by topping chart with a loss of N4.70 to close at N125 per share, against Conoil that trailed with a loss of N1.65 to close at N31.80, while Julius Berger declined by N1.35 to close at N25.65 per share.

After the two companies, GlaxosmithKine depreciated by N1.20 to close at N23.30, while Stanbic IBTC shed N1.10 to close at N48.90 per share and Transcorp drove the activity chart with an exchange of 35.38 million shares worth N66.22 million.

Zenith Bank followed with an account of 24.57 million shares valued at N682.21 million, while Caverton traded 19.39 million worth N52.35 million.

FBN Holdings exchanged 19.39 million shares valued at N259.29 million, while Guaranty Trust Bank sold 18.52 million shares worth N805.26 million.

Also, transactions at the exchange rose marginally with indices increasing by 0.10 per cent.

Market capitalisation rose by N14 billion or 0.10 per cent to close at N14.738 trillion against N14.724 trillion on Monday.

All-Share Index which opened at 40,763.93 rose to 38.85 points or 0.10 per cent to close at 40,802.78 following Nestle gain.

In all, the volume of shares traded closed lower with a total of 246.58 million shares valued at N3.22 billion transacted in 4,918 deals.

This was in contrast with 530.22 million shares worth N7.77 billion traded by investors in 4,567 deals on Monday.

Inflation rate drops in March – NBS

The National Bureau of Statistics (NBS) disclosed in its Consumer Price Index (CPI) report for the month of March that inflation rate dropped from 14.33 in February to 13.34 per cent in March year-on-year, the National Bureau of Statistics (NBS) disclosed in its CPI report for March.

The bureau stated that the figure showed 14 consecutive reductions in inflation rate since January 2017 in the report released on Thursday in Abuja.

According to the bureau, the figure is 0.99 per cent points less than the 14. 33 per cent recorded in February.

However, the NBS noted that increases were recorded in the Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.

On a month-on-month basis, the report stated the Headline index increased by 0.84 per cent in March 2018, up by 0.05 per cent points from the rate recorded in February.

It added that the percentage change in the average composite CPI for the 12-month period ended March over the average of the CPI for previous 12-month period was 15.60 per cent.

It indicated that the figures were 0.33 per cent lower from 15.93 per cent recorded in February.

The report, however, stated that urban inflation rate eased by 13.75 per cent (year-on-year) in March from 14.76 per cent recorded in February, while the Rural inflation rate also eased by 12.99 per cent in March from 13.96 per cent in February.

According to the report, the Composite Food Index rose by 16.08 per cent (year on year) in March 2018, down from the rate recorded in February (17.59 per cent).

It stated that “All Items less Farm Produce’’ or Core inflation, which excluded the prices of volatile agricultural produce, rose by 11.2 per cent in March, down by 0.5 per cent points from the rate recorded in February (11.7 per cent).

NNPC’s founding father commends management teams over performance

By NewsDesk,

The Nigerian National Petroleum Corporation (NNPC) Pioneer Managing Director of the, Festus Marinho, has said that the corporation has been performed to full expectation of his dreams, with the body been coming into fruition.

According to him, following developments from outside, founder cannot but be proud that dream for the NNPC is unfolding and making tremendous progress.

Speaking during his visit to the corporation earlier the week, Marinho commended management of the corporation particularly its Group Managing Director, Dr. Maikanti Baru, for emplacing NNPC on the path of prosperity.

He noted that despite the numerous problems and interferences faced by the corporation, the Dr. Baru-led management has kept its head straight, refusing to be cowed despite the difficult operating environment.

The corporation’s founding father, who expressed satisfaction on pace with which technology was impacting Oil and Gas Industry, disclosed that 2D seismic data acquisition started during his stewardship over 40 years ago, and that when 3D seismic acquisition came up, everyone was overjoyed.

“I don’t know how much ‘D’ seismic acquisition you are doing today, but I know a lot of progress has been made. Although technology is now more complicated, I think the beauty of it is that we are getting as much out of NNPC as one would have thought possible,” Marinho added.

He charged the management of the corporation to remain focused and strive for best, upon complexities of the oil and gas Industry.

In his remark, Dr. Baru commended Marinho for sharing his positive thoughts on how best to improve the corporation’s operations.

“I am particularly happy with your advice on remaining competitive. I wish to assure you that whatever companies we are floating in our quest to transform the corporation, we would ensure that we compete favourably in such area,” Baru noted.

He assured that NNPC’s doors would always remain open for stakeholders to contribute their quota towards the corporation’s progress.

Octogenarian was the first Managing Director of the then Nigerian National Oil Corporation (NNOC), the forerunner of NNPC.

He was twice the managing director of the corporation, serving from 1977-1979 and from 1984-1985, both periods when the incumbent President, Muhammadu Buhari, was Petroleum Commissioner and the Head of State respectively.

Niger begins CBN’s MSMEs N1bn development fund disbursement

By NewsDesk, 

The Niger State Government has began disbursement of Central Bank of Nigeria (CBN) Micro Small and Medium Enterprises Development Fund (MSMEDF) N1 billion to no fewer than 11, 578 beneficiaries considered eligible to access the funds.

As gathered, fund was the first tranche of disbursement to Micro, Small and Medium Enterprises (MSMEs) aimed at creating financial inclusion, wealth and empowerment of youths.

The State Governor, Abubakar Bello, state how the state had keyed into the initiative as part of its restoration agenda to empower youths to be engaged in useful ventures to become self-reliant.

Speaking at commencement of the disbursement in the state on Monday, Bello said that the government would continue to support MSMEs so as to stimulate economic growth, create jobs and engage the youths to reduce restiveness.

He advised the beneficiaries to be prudent in the management of the funds as they were loans to be paid back.

“I must make it clear that these monies are not free, they are loans to artisans, which must be repaid so that others too can benefit.

“Our desire to focus on the SMEs is to help the absorption of productive resources at all levels of the economy.

“This will enable them contribute to the building of flexible economy system in which artisans in the state are fully empowered to contribute to our economy,’’ he said.

He commended the effort of the agency in getting the beneficiaries and urged it to strengthen its recovery process to the loans were repaid.

In his remarks, the Director-General, Small, Medium Enterprises and Micro Finance Agency, Farouk Audi, in the state, said the beneficiaries were drawn across the 25 Local Government Areas and 6, 343 out of the total number are women constituting 60 per cent, while 5,244 are men.

He said three local government areas were selected in the three senatorial districts, adding that the scheme was targeted at generating wealth and job creation.

Audi added that the scheme would increase productivity and output of micro enterprises, enhance access to finance by MSME’s operators, reduce poverty to the barest minimum and address social vices among youths.

The state Commissioner for Investment, Commerce and Industry, Mahammad Mudisaid, the scheme would strengthen private sector operatives, ease access to affordable credit facility and create an enabling environment for businesses to strive.

He explained that the scheme was designed to empower the less privileged, petty traders, farmers, artisans, cottage industries, trade and general commerce, agricultural value-chain and business associations.

Mudi added that the scheme was a soft loan with beneficiaries expected to repay with ease through a simplified repayment guide within the recovery period.

February’s inflation rate drops to 14.33%, against January’s 15.13

By NewsDesk,

The National Bureau of Statistics (NBS) has disclosed that  Nigeria’s Inflation rate as measured by Consumer Price Index (CPI) has further dropped from 15.13 in January to 14.33 per cent in February.

It said that the figure showed 13 consecutive reductions in inflation rate since January 2017 and figure was 0.8 per cent less than rate recorded in January (15.13) per cent.

The agency, in its CPI report for February released on Wednesday in Abuja, explained that increases were recorded in the Classification of Individual Consumption by Purpose (COICOP) divisions that yield the headline index.

On month-on-month basis, it stated that the headline index was 0.79 per cent in February, but that the figure was down by 0.01 per cent from the rate recorded in January.

It added that the percentage change in  average composite CPI for the 12-month period ended February 2018 over the average of the CPI for the previous 12-month period was 15.93 per cent.

According to its report,  the figures were 0.29 per cent lower than 16.22 per cent recorded in January, with indication that Food Index (year-on-year) declined by 1.33 per cent from18.92 per cent in January to 17.59 per cent in February.

The report also signified all major food sub-indexes increased during the month, just as it revealed that price movements recorded by All Items less farm produce or Core sub-index increased to 11.7 per cent (year-on-year) in February.

“the figure was down by 0.4 per cent from the rate recorded in January (12.10) per cent. The highest increases were seen in prices of fuel and lubricants for personal transport equipment, maintenance and repair of personal transport equipment and narcotics during the month.

It hinted that the inflation increases were recorded in price of vehicle spare parts, passenger transport by air, clearing, repair and hire of clothing, hospital services, domestic services and household services and glassware, tableware and household utensils.

The bureau’s report added that the food price index showed inflation at 17.59 per cent in February from 18.92 per cent in January and that core inflation was 15.13 during the month.

Meanwhile, the Statistician-General, Dr Yemi Kale, had in January said that he expected that inflation would fall faster this year compared with 2017, but that spending ahead of 2019 presidential elections could stoke prices.

Kale claimed that the country was in harvest period and output was increasing which would help lower food prices, but household consumption remained fragile after the 2016 recession.

Group ties local made content promotion to economic stability

By NewsDesk,

The National Coordinator, Initiative for Leadership Development and Change (ILDC), Ugochukwu Nnam,  has identified that if local content could be given adequate promotion, such effort would guarantee self sufficiency and economic stability in Nigeria.

He stated that production and utilisation of Nigerian made goods and services was capable of eliminating over dependence on importation, urging Nigerians, especially leadership at all levels, to support President Muhammadu Buhari’s policy on local content.

Speaking to newsmen on need to for local made promotion on Saturday in Abuja, Nnam lamented that over dependence on foreign goods and services was partly responsible for the country’s stunted economic growth.

According to him, the country has time to stand up to promote its homemade goods no matter the challenges and countries such as China achieved economic growth due of its investments in local content.

He  commended the just concluded 2018 Science and Technology Expo organised by Ministry of Science and Technology.

The expo with the theme: Fast tracking Sustainable Development of Nigeria through Science and Technology, which, started on March 5, ended on March 9 in Abuja.

“When we appreciate and patronise our home made goods, certainly we are boosting our economy and our exports will increase.

“That will also boost our exchange rate hence the economy is made viable,” he explained.

Also speaking, the Deputy National coordinator of the group, Mr Onyekachi Ebere-Njoku, expressed confidence in the ability of the Buhari-led administration to restructure the economy.

Njoku said that the only way out of the over dependence syndrome was to embrace Nigerian made goods.

He noted that Nigeria had made giant strides under the present administration in local content, especially in agriculture.

“Today we can export millions of bags of rice and tubers of yam indicating that the economy is productive unlike before

Sokoto procures farming equipment worth N64M

By NewsDesk,

The Sokoto State Government has procured no fewer than 100 various farm equipment estimated at N64 million which would be distributed to farmers in order to support farming activities in the state.

It disclosed that that the equipment include five supper tiller machines, 50 tomato grinding machines, 40 rice handheld harvesters and five mini tractors.

The State Governor, Aminu Tambuwal, stated that the efforts in procuring the equipment were to ensure that farmers activities scale up and that group have implemented 1,786 business plans for rice, sorghum and tomato value chains.

Speaking  during inspection of farm sites on Sunday in Sokoto, Tambuwal said that total number of participating farmers stands at 24,546; made up of 21,631 male and 2,915 female.

The governor informed that the state would construct 1,000 tube wells to provide enough water to farmlands for the 2018 irrigation season in the state.

“The water levels in our dams are very low and will not be enough to serve the needs of our farmers for the dry season farming.

”To overcome that challenge, experts suggested we seek for alternative ways of watering our farmlands.

“In that regard, we decided to construct 1,000 tube wells in different locations across the state. This effort will enable us meet our target for the 2018 cropping season,” he said.