N8.1tn bad loans: MPC urges CBN to develop recovery framework
The Monetary Policy Committee of the Central Bank of Nigeria has directed the apex bank to develop a comprehensive administrative, legal and regulatory framework to speed up the recovery of delinquent loan facilities in the banking system. It called on the CBN to engage relevant stakeholders and authorities in order to mitigate credit risk and ultimately open up the credit delivery space in the Nigeria economy. The CBN Governor, Mr. Godwin Emefiele, disclosed this on Tuesday while addressing journalists shortly after the two-day committee’s meeting, which was held at the apex bank’s headquarters in Abuja. Based on figures released by the National Bureau of Statistics, the banking sector recorded a total amount of N8.17tn as non-performing loans in the 2018 fiscal period. The banking sector’s N8.17tn NPLs for 2018 decreased by N1.38tn when compared to the N9.54tn, which the banking sector recorded as NPLs in the 2017 fiscal period. Emefiele explained that while the NPL ratio in banks had moderated, it remained above the prudential benchmark.
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Nigeria loses N52b yearly to iron, steel smuggling
The introduction of the Destination Inspection (DI) system of inspecting imported goods by the Nigerian Customs Service (NCS) some years ago, is costing the nation a whopping N52 annually arising from smuggled iron and steel products alone. The Galvanised Iron and Steel Manufacturers Association (GISMA), which raised the alarm at a news conference in Abuja, yesterday, said smugglers are taking advantages of the weaknesses in the DI system to smuggle in substandard iron and steel materials into Nigeria. This, it said, is inimical to the survival of the local industries with many of them already shutting down operation.Spokesman for GISMA, Bello Mohammed, who spoke through a consultant, Mr. Obiora Ifoh, urged the Customs to immediately revert to the former Pre-Destination Inspection system. Under this system, goods are inspected from their origins to confirm that what is in the bill of laden is what is actually in the containers where undeclared goods can be spotted and removed.
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Trans Forcados Oil Pipeline Closure Hinders 240,000bpd Exports
The closure of the Trans Forcados Pipeline by Heritage Oil has hindered the exports of about 240,000 barrels per day of Forcados grade of crude oil through the Forcados Export Terminal in Delta State, THISDAY has learned. This is coming as Shell Nigeria Exploration and Production Company Limited (SNEPCo) said it was working with the federal government and other partners towards the actualization of the Final Investment Decision (FID) for the Bonga South West Aparo deepwater project, which will have a production capacity of 150,000 barrels of crude oil per day. The Nigerian National Petroleum Corporation (NNPC) has also declared that it met its financial obligations to the Federation Account in 2018 by remitting N1.26 trillion as against the N1.22 trillion projected in the 2018 budget, recording a surplus of N41 billion. The Trans-Forcados pipeline is the major trunk line in the Forcados Pipeline System used by oil companies operating in the western Niger Delta to evacuate crude oil from about 15 producing fields to the Forcados export terminal.
Nigeria recorded $3bn trade surplus with US in 2018
The latest Nigeria/America trade statistics have revealed that the United States of America recorded a trade deficit of $3bn with Nigeria in 2018. The report revealed that Nigeria was America’s 49th largest goods trading partner with $8.3bn in a-two way goods trade. Goods imported from the US in the year under review totaled $2.7bn while goods exported to the US was $5.6bn. The statistics were revealed in Lagos on Tuesday during a three-day USA fair which featured a gathering of exhibitors and business-to-business conference. While speaking on the topic, “The role and impact of US business on the Nigerian economy,” the President of the American Business Council, Nigeria, Dr Lazarus Angbazo, remarked that the trade data for capital goods and services indicated that the Nigerian market supports about 35,000 jobs in the US. According to Angbazo who is also the Chief Executive Officer, General Electric Nigeria, the commercial and investment footprint of American businesses in Nigeria is deep, broad-based and hugely consequential. He said, “American businesses operate in virtually every sector of the Nigerian economy.
NNPC remits N1.26tr to Federation Account
The Nigerian National Petroleum Corporation (NNPC) said it met its financial obligations to the Federation Account last year by remitting N1.26 trillion as against the N1.22 trillion projected in the 2018 budget, recording a surplus of N41billion. The Managing Director, NNPC Capital, Mr. Godwin Okonkwo, disclosed this during a presentation to the House of Representatives Ad Hoc Committee on the Investigation of the Non-Remittances of Funds to the Federation Account by the corporation between July 2017 and December 2018 at the National Assembly Complex in Abuja. A statement by NNPC explained that Okonkwo represented Group Managing Director of the Corporation, Dr. Maikanti Baru. It said though 2.3million barrels per day (mbpd) was proposed in the 2018 budget, national daily production for the period under review oscillated between 1.9mbpd to 1.89mbpd.
Don’t speak for Boko Haram, herdsmen, Afenifere tells FG
The Yoruba socio-cultural organization, Afenifere, yesterday faulted the Federal Government’s reaction to comments by former President Olusegun Obasanjo on the activities of Boko Haram and Islamic State in West Africa (ISWAP). Minister of Information and Culture Lai Mohammed in a statement in Abuja had said Obasanjo’s remarks attributing ethnoreligious motives to attacks by the terrorists were deeply offensive and divisive and below the status of an elder statesman. He said the former president’s prescriptions for ending the crisis, which include seeking assistance outside the shores of the country, were belated, as President Muhammadu Buhari had already performed outstandingly on the matter. The minister further said it was tragic that a man who fought to keep Nigeria one is the same seeking to exploit the country’s fault lines at the twilight of his life. He concluded that Obasanjo’s call for consultations with various groups to tackle Boko Haram were neutralized by the ill-advised, tactless and distasteful comments.
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YYF backs Obasanjo on Islamisation agenda
A pan-Yoruba group, Yoruba Youth Forum, has said former President Olusegun Obasanjo is right in his verdict that the fundamentalist Boko Haram sect is on a mission to Islamise Nigeria. The group said rather than vilify the ex-President and accuse him of ethnic bigotry, what he said should be taken by Nigerians as a wake-up call. In a statement on Tuesday by its President, Abiodun Bolarinwa, the YYF condemned the northern leaders who were attacking Obasanjo over his comment. It added that President Muhammadu Buhari had not done enough to secure the country. “Nigerians are not strangers in their fatherland and that is why the former President condemned the present administration for not providing adequate security for Nigerians. “Maybe we need to ask the government about its agenda for security because the silence on its part to the clarion call by the former President shows that the government is handling the issues of insecurity with levity. “The insecurity in Nigeria has been on for so long but it is now getting worse on a daily basis. The killings and kidnappings that are ravaging the nation are sending a wrong signal to innocent Nigerians and the outside world.
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N330bn fine: MTN has till May 31 to pay N55bn balance, says NCC
MTN Nigeria Communications Limited has till May 31 to pay the balance of N55bn out of the N330bn fine imposed on the telecommunications company by the Nigerian Communications Commission for SIM card registration infraction, the regulatory agency has said. In a statement issued in Abuja on Tuesday, the regulatory agency clarified that MTN had paid a total of N275bn, leaving a balance of N55bn that must be paid by the end of May. The statement said, “Following a negotiated reduction of the N1.04tn fine on MTN Nigeria to N330bn and in line with the staggered payment arrangement, MTN has, so far, paid N275bn to the Federal Government. “Part of the fallout of the negotiated terms of payment of the fine is the listing of MTN on the Nigerian Stock Exchange and this is being done. “What this means, according to the staggered arrangement, is that May 31, 2019 would be the deadline for the telecoms company to pay the sixth and final tranche of the balance of N55bn.” It added, “After six months of negotiation and re-negotiation over the fine which led to the reduction to N330bn, it was agreed that MTN would pay a balance of N280bn in six tranches. This was in addition to the “goodwill” payment of N50bn earlier made by MTN to the government.
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Jumia faults Citron’s claims, hopeful of steady growth
Electronic commerce platform, Jumia Technologies, has faulted claims by Citron Research that the firm is a fraud. Jumia described the recent allegations as ‘selected, biased or unverified facts’ with what appears to be a clear objective of damaging its brand and business, especially because of its successful Initial Public Offering (IPO) on the New York Stock Exchange (NYSE). The Chief Executive Officer, Jumia Nigeria, Juliet Anammah, said in Lagos that they stand by the disclosures made in the company’s prospectus during the IPO, which accurately described its business and the related risks in all material respects.Citron had earlier this month alleged that in 18 years of publishing, it has never seen such an obvious fraud as Jumia. Citron also called the media in the United States ‘naïve’ for anointing Jumia the “Amazon of Africa”, after the e-commerce merchant successfully launched its IPO on NYSE, claiming a ‘widespread fraud’.But faulting the Citron’s report, Jumia said: “Some recent allegations were made about Jumia on the basis of selected, biased or unverified facts with what appears to be a clear objective of damaging the brand.
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MainOne to invest N2bn in Lagos fiber infrastructure
Mainone, a West African connectivity, and data center solutions provider, is set to deploy 2,000 kilometers of fiber optic infrastructure in Lagos state in the next three years. In a project the company tagged ‘Digital Lagos for All’, MainOne said the N2bn investment in broadband infrastructure would be a shared open model that would connect towers and government institutions in the state. This is coming four years after the company obtained Infraco license from the Nigerian Communications Commission for the ubiquitous deployment of broadband infrastructure. Speaking at a press conference in Lagos on Tuesday, the Chief Executive Officer, MainOne, Funke Opeke, noted that the ambitions for Lagos was inspired by the vision of the Lagos Governor-elect, Babajide Sanwo-Olu, who noted that technology would improve the rule of law, education, ease of doing business and government processes of Lagos.
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SEC denies probing MTN’s listing, NSE defends process
The Securities and Exchange Commission has said it is not probing MTN Nigeria Communications Plc over its listing on the Nigerian Stock Exchange. SEC alleged that some stockbrokers were instigating false media reports. The SEC spokesperson, Mrs Efe Ebelo, told our correspondent on Tuesday that the commission had approved MTN’s listing last week and had no issues with it. The acting Director-General, SEC, Ms Mary Uduk, said last week that MTN sought to come to the market by way of an introduction and they wrote to SEC the previous week requesting for approval to register its existing shares. Uduk stated that the approval had been granted, describing the approval as a further indication of the determination by SEC to work with companies interested in the capital market. She said, “We believe that this will also encourage other service providers to come to the market.” Ebelo said any issue surrounding MTN’s listing was between the telco and the NSE as SEC held nothing against it.
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IST reaffirms commitment to capital market growth
The Investments and Securities Tribunal (IST) has reaffirmed its commitment to the development of the Nigerian capital market through efficient dispute resolution. The IST gave the assurance yesterday at the formal unveiling of the tribunal’s zonal office in Lagos. Chairman and Chief Executive, Investment and Securities Tribunal (IST), Siaka Idokoh-Adoh, said the new office was a demonstration of the tribunal’s commitment to creating enabling environment for efficient adjudication and promotion of investors’ confidence in the Nigerian capital market. According to him, it was necessary to relocate to the new office to create a conducive platform for the ventilation of grievances by litigants as well as affording potential litigants a closer justice.
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Zimbabwe Has Little to Show for $27 Billion Investment
When Emmerson Mnangagwa took over the leadership of Zimbabwe from Robert Mugabe in November 2017, he promised to revive the moribund economy and adopted a mantra he’s repeated regularly ever since — “Zimbabwe is open for business.” Mnangagwa, always wearing a scarf in the colors of the Zimbabwean flag, quickly set about traversing the globe to woo investment needed to revive the heavily indebted economy. By March, he’d been on at least 30 foreign visits, including trips to the U.S., Russia, China, the Middle East and the World Economic Forum in Davos.
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North Korea warns U.S. over a seized ship at rare U.N. news conference
North Korea stepped up its campaign on Tuesday for the United States to return a seized cargo ship belonging to Pyongyang, warning Washington that it had violated its sovereignty in a move that could affect “future developments” between the countries. North Korea’s U.N. Ambassador Kim Song held a rare news conference at the United Nations in New York to demand the immediate return of the ship, which the United States said earlier this month it had seized over accusations it was used for coal shipments in violation of U.S. and U.N. sanctions. “The United States should deliberate and think over the consequences its outrageous act might have on the future developments. Also, the United States must return our cargo ship without delay,” Kim said. “We regard it as part of our territory where our sovereignty is fully exercised.”
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