The Central Bank of Nigeria (CBN), says the aggregate foreign exchange inflow into the country stood at $91 billion in 2017.
The bank disclosed in its 2017 annual report adding that the figure was an increase of 45 per cent from $62.75 billion in 2016.
The bank also said the figure surpassed the total outflow by $57.32 billion in the period.
According to the bank, inflow through the CBN was $42.17 billion, while inflow through autonomous sources amounted to $48.33 billion.
In percentage terms, inflow through the CBN accounted for 46.3 per cent, while autonomous sources took 53.7 per cent.
Also, aggregate foreign exchange outflow, from the economy, increased by 31.8 per cent to U$33.68 billion, higher than the $25.55 billion in 2016.
The report said the outflow through the CBN accounted for 90.7 per cent, about $30.55 billion. It was $23.16 billion in 2016.
Outflow via autonomous sources was calculated at $3.13 billion
The increase was attribute to the increased intervention by the CBN in the inter-bank and Bureau De Change (BDC) segments of the foreign exchange market.
The Central Bank of Nigeria (CBN) has granted N14.9 billion loan to the North East Commodity Association (NECAS), on the platform of its Anchor Borrowers’ Programme (ABP). Alhaji Sadiq Deware, National President, NECAS, disclosed this on Monday in Abuja, that the loan is for a period of one year at a single digit of 9 per cent. He said under the programme 27,000 farmers would benefit while 75,000 hectares of land would be cultivated in the four participating states.
“The beneficiaries were farmers were mainly affected by the insurgency in Taraba, Bauchi, Gombe, Adamawa and Yobe states. Deware explained that Borno state was not included as a result of the insecurity in the state. He explained that out of the 27,000 farmers 10,000 out of them were from Gombe State, and attributed the development to their dedication and commitment in terms of farming activities. “For example 11,525 farmers are cultivating 38,678 hectares of land for maize, sorghum, soya beans , rice and cotton, while the nearest to it Yobe state is cultivating 14,666 hectares of land by 5,676 farmers. He said the programme would cover all the commodities that the North east have comparative advantage of producing which includes, rice, maize, millet, sorghum and even small ruminants amongst others. Deware said that inputs would be given to farmers on loan basis and they were expected to pay back in three phases.
“Starting with first payment of 40 per cent after the first farming cycle, then they would pay the remaining two cycles of 30 per cent making a total of 100 per cent. “Before now, the size of each farm had been captured and an identity card was issued to each of the beneficiaries of the project for easy identification and documentation to enable them to access the required support,’’ he said. Daware said that the project was a modified version of the ABP, which was aimed at strengthening efforts to attain bumper harvests and expressed the optimism that the new initiative would double the achievements of the ABP. He said that under the new initiative, the Central Bank of Nigeria (CBN) had modified the programme to facilitate its direct relations with NECAS so as to ensure timely disbursement and full repayment of ABP loans, unlike what obtained in the past. Deware disclosed that the association has re-absorbed some of the retired extension agents in the beneficiary states and re-trained them on modern technologies in enhancing their job performance.
“NECAS under the programme has commenced the recruitment of retired but willing to work extension workers in order to boost support for farmers and ensure proper sensitisation on new farming methods as well as advise on any problem faced by farmers. He said that more than 128 extension agents were recruited for the programme in Adamawa state as it was in other states. Dware said that for the successful implementation of the exercise the extension workers have been taught the working systems of modern technologies in service delivery and they are optimistic that the training would be beneficial to the farmers. According to him, the efforts are geared toward encouraging increased agricultural production in line with the drive to diversify the economy. He said this has become imperative because the role of agricultural extension agents in the development of agriculture throughout the world is very essential. “It has remained one of the prime movers in the development of agriculture and invariably in the rural development.
“There specific objectives as agricultural extension officers were to provide advice to farmers on problems or opportunities in agricultural production, facilitate development of local skills and transfer new technologies to farmers and rural people,’’ he said. Deware said they have also developed a suitable extension service that is gender specific and tailored to women farmers. (NAN)
The Naira on Thursday gained marginally against the dollar at the parallel market in Lagos, the News Agency of Nigeria (NAN) reports.
The Nigerian currency gained 50 kobo to close at N358, stronger than N358.5 traded on Thursday, while the Pound Sterling and the Euro closed at N480 and N418.5 respectively.
At the Bureau De Change (BDC) window, the naira closed at N360 to the dollar, while the Pound Sterling and the Euro closed at N480 and N418.5 respectively.
The naira, however, appreciated at the investors’ window, closing at N361.45, stronger than N361.68 traded on Thursday, while it was sold at N305.90 at the Central Bank of Nigeria official window.
Meanwhile, Mr Godwin Emefiele, CBN Governor, said that Nigeria performed very well among emerging markets in Africa.
Emefiele in an interaction with newsmen at the end of the Monetary Policy Committee (MPC) meeting in Abuja, added that the foreign exchange market had remained stable.
According to him, the apex bank had enough buffers to defend the naira.
The Federal Government of Nigeria received N3.211 trillion as Petroleum Profits Tax (PPT) and Royalties from the third quarter of 2015 to third quarter of 2017, according to the Economic Report of the Central Bank of Nigeria (CBN).
Breakdown of the revenue to the government showed that the country received N495.39 billion as PPT/royalties in third quarter of 2015; N388.66 billion, in fourth quarter of 2015; and N314.04 billion during first quarter of 2016.The revenue from PPT/royalties declined in second quarter of 2016 to N212.78 billion; later increased to N392.38 billion in third quarter of 2016; and decreased to N273.13 billion in fourth quarters of 2016.
There was a rebound of revenue to N325.38 billion in first quarter of 2017; N320.49 billion in second quarter and N489.41 billion during the third quarter of 2017. The CBN report for the third quarter of 2017 released recently, revealed that N103.46 billion was allocated to the 13 per cent Derivation Fund for distribution among the oil producing states.
analysing the report, CBN disclosed that oil receipt at N1.27 trillion during the quarter under review was lower than the proportionate quarterly budget estimate by 6.2 per cent, but was above the receipts in the preceding quarter by 59.7 per cent. According to the CBN, the decline in oil revenue relative to the proportionate quarterly budget estimate was due to the shortfall in receipts from crude oil/gas exports, owing to the decline in crude oil production, arising from leakages and shut-ins/shut-downs at some NNPC terminals.
It disclosed that Nigeria’s crude oil production, including condensates and natural gas liquids, averaged 1.83 million barrels per day (mbd) or 168.36 million barrels (mb) in the review quarter.This, it noted, represented an increase of 0.17 mbd or 10.2 per cent, compared with 1.66 mbd or 151.06 mb recorded in the preceding quarter. The development was due to sustained peace in the oil production region.CBN said that crude oil export stood at 1.38 mbd or 126.96 mb, representing 14.0 per cent increase over 1.21 mbd or 110.11 mb in the preceding quarter.
The development, it hinted, was due, mainly, to reduced activities of vandals in the Niger Delta region.Allocation of crude oil for domestic consumption was maintained at 0.45 mbd or 41.40 million barrels in the review quarter.
Nigerian National Petroleum Corporation (NNPC) Chief Operating Officer, Upstream, Malam Bello Rabiu, proposed some key amendments to the Deep Offshore and Inland Basin Production Sharing Contract (PSC) Act to enable the Federal Government optimize the collection of royalties and other revenue in deep water oil production activities.He noted that it was imperative to effect increment in royalties across all categories to increase government take.
“It is our opinion that the proposal to increase the royalty rate for terrains beyond 1000 metres, from zero per cent to three per cent, is commendable but it is necessary to also make corresponding adjustments in other categories,’’ he said.He argued that in the alternative, the graduated royalty scale as provided in the Act should be removed while the Minister of Petroleum Resources should be empowered to intermittently set royalties payable for acreages located in deep offshore and inland basin production sharing contracts through regulations based on established economic parameters.
“It is our opinion that these incentives have outlived their usefulness and are now impediments to the Federal Government’s revenue collection efforts. The use of such incentives can be terminated by an amendment of section 4 of the Act,’’ the Corporation noted.He called on the National Assembly to seek relevant input from the Federal Inland Revenue Service, to resolve the divergent opinions regarding the methodology for the computation of the taxes which would arise as a result of the proposed royalty regime.
Source: The Guardian
I&E Window transacts $900m, as reserves stagnate at $47.6 billion
There was near excess in the quantity of money in circulation last week, save for the increased mop up exercise by the Central Bank of Nigeria (CBN), following the repayments of N66.7 billion and N377.6 billion worth of Treasury Bills (T-Bills) and Open Market Operations.
The movement in system liquidity during the week had risen in two of the four trading days, resulting to 3.7 per cent rise in the quantity of money in circulation to N842 billion compared to N812.1 billion in the preceding week.Consequently, the two most popular traded instruments among banks- Open Buy Back and the Overnight rates, trended southwards by 0.7 percentage points (ppts) and 0.5ppts to 2.8 per cent and 3.6 per cent respectively.
During the rollover of the instruments, investors showed apathy for short tenored bills, as they asked for higher rates, causing an under-allotment to reduce cost for government, which subsequently left a sizable quantity of money in circulation till the weekend.Analysts at Afrinvest Securities Limited said this week, despite the absence of maturing bills, except N183.3 billion worth of OMO maturities, the apex bank will sustain its trend of liquidity mop ups and money market rates could trend higher.
Similarly, at the foreign exchange market, the naira remained stable, defying the influence of speculations ahead of the biannual meeting of the Organisation of the Petroleum Exporting Countries (OPEC) in Vienna, Austria, at the weekend, which increased oil production by one million barrels per day.
The decision, which is expected to influence global oil price, would further affect Nigeria’s external reserves that have remained stagnant in weeks at $47.6 billion, as crude oil accounts for a large proportion of the nation’s foreign exchange earnings.
Specifically, the reserves have stagnated in the last three weeks, with an earlier back and forth movement, as reports showed that Nigerian crude oil cargoes from the June programme took long before they were cleared, as demand was not strong enough and differentials were too high to spark much buying of July barrels.During the week, the Central Bank of Nigeria (CBN) continued its weekly intervention, offering $210 million through the Wholesale SMIS window to maintain stability, as well as sustain liquidity in the foreign exchange market.
Consequently, the CBN spot rate appreciated five kobo when measured week-on-week to N305.80 per dollar from N305.85 per dollar in the previous week, while at the parallel market, the naira traded flat for the second consecutive week at N362 per dollar.
In the same vein, the local unit, at the Investors and Exporters’ (I&E) forex Window, appreciated seven kobo week-on-week to N361/$ from N361.07/$ in the previous week.On the activity level, transactions improved by 15.1 per cent at the autonomous window, as investors exchanged about $900 million against $800 million recorded the previous week.
Source: The Guardian