Nigeria must prepare for the next global economic crisis — Emefiele
Governor of Central Bank of Nigeria, Godwin Emefiele, on Wednesday, said Nigeria must prepare for the next global economic crisis. Emefiele said this while delivering a lecture titled: ‘Beyond the Global Financial Crisis: Monetary Policy under Global Uncertainty,’ at the University of Benin, Benin, Edo State. He said although the country had made progress in the year under review, more efforts must be made to reduce the country’s unemployment rate. Emefiele stated, “From some of my concluding remarks, you may have observed, whether you like it or not, there is global uncertainty that will, unfortunately, most certainly lead to another crisis. “The question could be, how are we as Nigerians, particularly our leaders, I am talking of monetary and fiscal policy authorities, how are we preparing our country for the next crisis? “We have luckily exited recession; we have seen recession pending downward to about 18.72 per cent in 2017 to about 11. 37 per cent today. “We have seen the reserve moving up but unfortunately we still have issues and those issues border on the unemployment rate and those issues border on how we prepare our country,” he said.
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How U.S.-China trade war benefits Nigeria, by ABCON
The rising trade tension between the United States and China is benefitting Nigeria, as it is currently boosting the price of crude oil in the international market. By the development, the country is not only increasing its stock of foreign exchange reserves but also boosting the strength of the local currency, as confidence on the increasing buffers supports activities. The President, Association of Bureaux De Change Operators of Nigeria (ABCON), Dr Aminu Gwadabe, while speaking with finance journalists in Lagos, said since the beginning of April this year, oil prices have remained above $70 a barrel as the trade war rages. According to him, the U.S. sanctions on Iran and Venezuela have also tightened the supply of crude oil at the international market and put upward pressure on oil prices. Last week, the U.S. had raised tariffs on $200 billion worth of Chinese imports to 25 per cent from the previous rate of 10 per cent, pushing prices of affected consumer goods higher.
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Report: Nigeria, Others Lose $3bn to Counterfeit Products Yearly
Businesses are at risk of being sold counterfeit print supplies than ever before, as global economies lose as much as $3 billion yearly to counterfeit products, according to a recent HP-commissioned study by Harris Interactive. According to the report, market trends showed an increase in counterfeiting, even as enforcement scores significant wins. In Nigeria, HP, in collaboration with security agents, has raided several hideouts in Lagos, where counterfeit HP consumables were sold and arrest was effected. Already costing the global economy $3 billion per year according to the Imaging Supplies Coalition, the growing risk of fake products was driven by an increasingly broad supplier ecosystem, lack of certainty by buyers that their purchases are genuine, and a lack of awareness of the risks of purchasing counterfeit goods. Analysing the report, the Director Global Anti-Counterfeit Programme at HP, Glenn Jones, said: “Every one of the key market indicators we monitor shows a significant increase in the risk of counterfeit print supplies. For companies like HP, counterfeits undermine decades of focused research and testing aimed at creating superior ink and toner, and reliable, high-quality cartridges for our customers.
FG targets four million jobs via oil palm production
The Federal Government is targeting to create about four million fresh jobs through oil palm production in the country. The Permanent Secretary of the Federal Ministry of Industry, Trade and Investment, Mr Sunday Akpan, said this in Abuja at a stakeholders’ forum for the presentation of the draft oil palm policy document. The permanent secretary, who was represented by the Director, Department of Commodity Produce and Inspectorate, Mrs Omololu Ope-Ewe, said the Federal Government was working assiduously towards repositioning the oil palm sector of the economy. This, he noted, would guarantee the sector’s optimal contribution to the economy in terms of job creation and revenue for both the public and private sectors. Akpan also lamented that oil palm which once contributed about 70 per cent of the nation’s Gross Domestic Product now contributes about one per cent to economic output. He said there was huge potential for the growth of the sector in terms of job creation, poverty reduction and foreign exchange earnings.
Oil prices drop three per cent to $70
Oil futures sank yesterday as an unexpected build in the United States (U.S.) crude stockpiles compounded investor worries that a prolonged trade war between Washington and Beijing could dent crude demand. U.S. West Texas Intermediate crude futures for July delivery slumped $1.92, or three per cent, at $61.21. Brent crude futures went down $1.52, or 2.1 per cent, at $70.66 a barrel. U.S. crude inventories swelled by 4.7 million barrels in the latest week to their highest since July 2017, the U.S. Energy Information Administration reported. Analysts polled by Reuters had forecast a decrease of 599,000 barrels as refineries cut output. “It’s at the extreme end of the range of possibilities for a bearish report. It’s about as bad as it could have been considering the fact that driving season is so close,” said Bob Yawger, director of futures at Mizuho, New York. Gasoline stocks posted a surprise build as well, rising by 3.7 million barrels compared with analysts’ expectations for an 816,000-barrel drop.
Senate raises the alarm over frightening killings in Rivers
The Senate yesterday raised serious concern over the killing of innocent citizens as a result of murder, kidnapping, violence and abduction with no meaningful strategy being deployed to checkmate the menace. In a motion sponsored by Andrew Uchendu, representing Rivers East, he said the killings, which had been on for more than 10 years now, assumed a very dangerous dimension before, during and after the 2015 general elections. He also expressed worry that the killings had assumed more horrendous dimension by the decapitation and dismembering of body parts as well as beheading of victims. The upper legislative chamber, while adopting the motion, urged the Federal and the Rivers State governments to develop workable strategies that would stop the rising cases of killing in the state. Senate President Bukola Saraki said all hands must be on deck to tackle criminality frontally.
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Citing Personal Reasons, Bulkachuwa Withdraws from Atiku’s Petition
The Chairman of the Presidential Election Petition Tribunal, Justice Zainab Adamu Bulkachuwa, Wednesday finally succumbed to pressure by the presidential candidate of the Peoples Democratic Party (PDP), Alhaji Atiku Abubakar, to recuse herself from hearing his petition and that of his party, against Buhari’s victory in the February 23 poll. Though the tribunal in a unanimous decision dismissed Atiku’s petition asking Justice Bulkachuwa to withdraw from hearing his petition, Justice Bulkachuwa said she would nonetheless withdraw from the hearing of the petition on personal grounds. Bulkachuwa, who is also President of the Court of Appeal, had chaired the inaugural session of the tribunal, despite moves by the PDP and Atiku to ensure she was not part of the panel. PDP and Atiku had demanded Justice Bulkachuwa’s recusal, citing the involvement of members of her family in the All Progressives Congress (APC), one of the respondents in the petition.
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SNEPCo paid N366bn to FG in 2018, says MD
Shell Nigeria Exploration and Production Company Limited said it paid N366bn in 2018 as revenue to the Federal Government from its exploration activities. The Managing Director, SNEPCo, Mr Bayo Ojulari, said the company also made a statutory payment of N2.1bn to the Niger Delta Development Commission last year. Ojulari, according to a statement, spoke at the media launch of the 2019 edition of the ‘Shell in Nigeria Briefing Notes’, an annual publication detailing the activities of the business interests of the global energy giant in Nigeria. According to Ojulari, the payments resulted from oil and gas production by SNEPCo’s flagship investment, Bonga, which is Nigeria’s first oil and gas project in water depths of over 1,000 metres. “At the end of 2018, SNEPCo had produced 819 million barrels of oil from the Bonga field which translates into huge contributions to the Nigerian economy, in addition to the significant human capital development of deep-water expertise among Nigerians,” he said. He noted that the pride of SNEPCo was the increase in its Nigerian workforce to over 96 per cent and the creation of Nigeria’s first oil and gas engineers with deep-water experience.
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Forte Oil declares N1.5b interim dividend
The board of directors of Forte Oil Plc has earmarked about N1.5 billion as interim cash dividend to shareholders of the indigenous oil and gas group. In a circular yesterday, the board indicated that shareholders on the register of the company as at the close of business on Monday, June 3, 2019, will receive an interim dividend per share of N1.15. The interim dividend will be paid through e-dividend on June 10, 2019. The interim dividend might be from the proceeds of the recent divestments by the oil and gas group. Forte Oil recently indicated that it had entered into a share sale and purchase agreements to sell its power and upstream businesses in continuation of complicated divestment programme involving the major shareholder and chairman of the board of director, Mr Femi Otedola. In a regulatory filing at the Nigerian Stock Exchange (NSE), Forte Oil stated that it had entered into Share sale and purchase agreement with Calvados Global Services Limited for the sale of its power distribution company, Amperion Power Distribution Company Limited.
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SEC Approves New Rules for Trading of Shares on the NSE
The Nigerian Stock Exchange (NSE) Wednesday said it has received the approval of the Securities and Exchange Commission (SEC) to some rules and amendments of existing ones aimed at making trading on the stock exchange more efficient. In a notification placed on its website, the NSE listed the rules to include: Rules on securities transactions between dealing members of the NSE, which will become effective June 3; Rules for listing on the Growth Board of the NSE, to be effective June 17; Rules governing free float requirements for issuers listed on the NSE, effective June 3; Rules on price stabilisation of securities, effective July 15 and Rules on release calendar for regulatory announcements and filings of listed companies, effective September 2, 2019. According to the NSE, all the rules were approved by the SEC on May 6, 2019. According to rule, free float means the number of shares that an issuer has outstanding and available to be traded on the exchange.
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Persistent bulls run pushes market index further by N408b
Sustained bargain-hunting extended the bullish run into the fifth consecutive trading day, causing market capitalisation to rise significantly by N408 billion. Yesterday, the All-Share Index (ASI) gained 927.01 absolute points, representing a growth of 3.07 per cent to close at 31,145.15 points. Similarly, the market capitalisation gained N408 billion to close at N13.718 trillion. The performance was largely driven by price appreciation in Dangote Cement, MTN Nigeria, GlaxoSmithKline Consumer Nigeria, Vitafoam Nigeria, and UAC of Nigeria. Analysts at Afrinvest Limited said: “Despite the weak investors’ sentiment, we expect the rally in MTN Nigeria and renewed interest in Dangote Cement to continue to buoy market performance in the near term.”Also, Cordros Capital Limited expects the rally in the equity market to persist in the short term, following sustained interest in MTN Nigeria shares. But market breadth remained negative, with 12 gainers versus 27 losers. MTN Nigeria recorded the highest price gain of 9.98 per cent to close at N144.85 per share. Vitafoam Nigeria followed with a gain of 9.82 per cent to close at N4.25, while Dangote Cement appreciated by 9.73 per cent to close at N203, per share.
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FGN’s May bonds oversubscribed by N171bn
The Federal Government’s bond for the month of May worth N100bn, which was offered on Wednesday, was oversubscribed by over N171.11bn. Recent trends in the FGN bonds also showed that investors had a preference for long term bonds. Total bids received from investors for the bond was N271.11bn. The Debt Management Office disclosed that the trend of oversubscription at the FGN bond auctions for the year continued, after the three instruments for five, 10 and 30-year tenors, of N35, N35 and N30bn respectively. At the May 2019 FGN bond auction on Wednesday, the DMO offered three instruments for five, 10 and 30-year tenors to the investing public, with a total amount offered of N100bn. As with the April auction when the 30-year bond was first offered to the market, investors showed stronger demand for the 30-year bond with a subscription of over N100bn compared to the N30bn offered. “This clearly indicates that the DMO understands the needs and preferences of investors in terms of tenor, which informed its introduction of the 30-year bond,” the DMO stated.
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A Copper Mining Lesson From Zambia: History Repeats Itself
Vedanta Resources Ltd. is learning the hard way that when it comes to Zambia’s copper-mining industry, history tends to repeat itself. Fifty years ago, Zambia’s first post-independence leader Kenneth Kaunda nationalized mines owned by Anglo American Plc and Roan Selection Trust to rally his political supporters. Now populist President Edgar Lungu is taking legal steps to take over the operations of Vedanta’s Konkola Copper Mines, alleging the unit lied about expansion plans and cheated on taxes.
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Judge rules against Trump, paves way for banks to provide his business records to Congress
U.S. President Donald Trump, three of his children and the Trump Organization on Wednesday lost their bid to block Deutsche Bank AG and Capital One Financial Corp from providing financial records to Democratic lawmakers investigating Trump’s businesses. In a decision read from the bench after hearing arguments, U.S. District Judge Edgardo Ramos in New York said Congress has the legal authority to demand the records, clearing the way for the banks to comply with subpoenas issued to them by two U.S. House of Representatives committees last month.
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