The Central Bank of Nigeria (CBN) has directed that loans granted to about 550,000 rice farmers in the country who were affected by the 2018 flooding be structured for another four years as a form of compensation.
This was disclosed by the National President of Rice Farmers Association of Nigeria (RIFAN) Aminu Goronyo on Tuesday in Abuja.
Goronyo said: “Instead of paying the loan in three installments within a year, the loan will be restructured to be paid within four years now and be paid by installments.’’
Goronyo further said that only the affected farmers under the RIFAN/CBN/ABP model programme would benefit from the compensation, adding that the resolution was an outcome of a meeting with the Director, Developing Finances of CBN and RIFAN executive.
The RIFAN president, who said his association only championed the case of affected farmers under its care, expressed the hope that all the registered farmers under the Anchor Borrowers Programme that were affected would benefit from it.
The CBN, according to Goroyo, has also directed that a fresh loan should be given to the affected farmers so that they could go back to the field and recover their losses.
“RIFAN is working on the Federal Ministry of Agriculture and Rural Development, the Presidency and the CBN to compensate the victims as promised by President Mohammadu Buhari.
“RIFAN is also seeking assistance from the CBN to restructure the loans to alleviate the suffering of the affected farmers and make them go back to the field,’’ he said.
The Debt Management Office (DMO) has revealed that Nigeria’s total debt portfolio leaped from N12.12 trillion as of June 30, 2015 to N22.43 trillion as of September 30, 2018.
According to data from the DMO, the total debt of the country rose by 85.07 percent since President Muhammadu Buhari took office on May 29, 2015, representing N10.31 trillion.
Of the total debt, the external component of both the Federal Government and state governments’ debts including that of the Federal Capital Territory stood at $21.59 billion from $10.32 billion as of June 30, 2015, while the domestic debt of both the Federal Government and the state governments stood at N15.81tn.
The data also showed that the domestic debt of the Federal Government stood at N12.29 trillion as of September 30, 2018 from N8.4 billion as of June 30, 2015 while the domestic debts of the state’s and the FCT stood at N1.69 trillion.
The DMO added that the debt statistics as of September 30, 2018, was only slightly different from the statistics as of June 30, 2018.
“External debt declined by 2.02 per cent to $21.59bn due largely to the redemption by Nigeria of a $500m Eurobond which matured on July 12, 2018.
“The Eurobond which was issued for a tenor of five years in 2013 was the first Eurobond maturity for Nigeria and Nigeria’s ability to repay it seamlessly boosted Nigeria’s position as a good credit in the International Capital Market.
“The domestic debt of the FGN, states and the FCT grew by 1.19 per cent from N15.63tn in June 2018 to N15.8tn in September 2018. This increase of N185bn was attributed to the FGN (N135bn) and states and FCT (N50bn).
“The combination of an increase in the level of domestic debt and a decrease in the external debt stock resulted in a slight shift in the portfolio composition.
“As of September 30, 2018, the share of domestic debt was 70.51 per cent compared to 69.83 per cent in June 2018.
“This trend is expected to be reversed in Quarter Four 2018 as the new external borrowing of N849bn (about $2.78bn) provided in the 2018 Appropriation Act is expected to be raised within the quarter”, the DMO said.
The World Bank has predicted that Nigeria’s Gross Domestic Growth, GDP, will expand by 2.2 percent in 2019.
The World Bank made the prediction in its annual Global Economic Prospects published on Wednesday.
The prediction slightly upgraded the country’s projected growth rate from 2.1 per cent in June 2018.
According to the World Bank, growth in sub-Saharan Africa would accelerate to 3.4 per cent in 2019, due to improved investment in large economies together with continued robust growth in non-resource intensive countries.
“Per capita growth is forecast to remain well below the long-term average in many countries, yielding little progress in poverty reduction.
“Growth in Nigeria is expected to rise to 2.2 per cent in 2019, assuming that oil production will recover and a slow improvement in private demand will constrain growth in the non-oil industrial sector.
“Angola is forecast to grow 2.9 per cent in 2019 as the oil sector recovers as new oil fields come on stream and as reforms bolster the business environment.
“South Africa is projected to accelerate modestly to a 1.3 per cent pace, amid constraints on domestic demand and limited government spending,” the bank said.
The World Bank report, while dwelling on the risk to the region’s growth, said escalated trade tensions between the United States and China could impact negatively on the region.
“Faster than expected normalisation of advanced economy monetary policy could result in sharp reductions in capital inflows, higher financing costs and abrupt exchange-rate depreciation.
“Increased reliance on foreign currency borrowing has heightened refinancing and interest rate risk in debtor countries,” the noted.
The report further stated that domestic risks remained elevated and that political uncertainty and a concurrent weakening of economic reforms could continue to weigh on the economic outlook in many countries.
“In countries like Mozambique, Nigeria, and South Africa holding elections in 2019, domestic political considerations could undermine the commitments needed to rein in fiscal deficits, especially where public debt levels are high and rising.
Daily production of crude oil by Nigeria increased by 9 percent in 2018 to 2.09 million barrels compared to the 1.86 million barrels daily production in 2017.
This was disclosed by the Group Managing Director, Nigerian National Petroleum Corporation (NNPC) Maikanti Baru, adding that Nigeria maintained a line of consistent year-on-year improvement in its daily crude oil production.
Baru, according to a statement by the NNPC Group General Manager, Group Public Affairs Division, Ndu Ughamadu on Tuesday, stated this in an end-of-year message to members of staff of the corporation, adding that the Nigerian Petroleum Development Company, Nigerian Gas Company, Petroleum Products Marketing Company, Duke Oil, NIDAS and Integrated Data Services Limited, were among the companies that boosted the corporation’s performance in 2018.
Baru however singled out NPDC, the corporation’s upstream company, as the major contributor to the industry’s success story in 2018.
Baru said he was enthusiastic on the 52 per cent daily crude oil production growth by the company when compared with its 2017 performance, explaining that the average crude production from NPDC’s operated assets alone grew from an average of 108,000 barrels of oil per day in 2017 to 165,000bod in 2018.
According to him, NPDC’s equity production share of 172,000bpd, representing about eight per cent of national daily production, was no less impressive, while the 200,000bpd addition which the Egina Floating Production Storage and Offloading vessel completed and sailed away to a location in August last year added to the nation’s daily production.
Baru revealed that the project achieved first oil at 11.20pm on December 29, 2018.
The NNPC GMD also informed staff members the corporation firm made a save of $1.7bn with the corporation’s Joint Venture partners over a five-year tenor repayment plan, adding that already the corporation had defrayed $1.5bn of thearrearss, promising that the NNPC would stick to the repayment agreement with the JV partners while transiting to self-funding IJV modes with the corporation’s partners.
Market capitalization at the Nigerian Stock Exchange (NSE) dropped by N100.2 billion on Thursday as stocks of banks and industrial companies listed on the Exchange recorded losses.
The market capitalization which opened on Thursday after a two-day break at N11.676 trillion, closed at N11.576 trillion, a difference of N100.2 billion, while the All Share Index dropped by 0.9 per cent to 31,692.63 basis points, and the year-to-date loss worsened to -17.1 per cent.
Analysts are of the opinion that the negative market performance was dragged by losses recorded in FBN Holdings Plc, Dangote Cement Plc and Access Bank Plc.
Activity level at the exchange fell as volume and value declined by 36.7 per cent and 49.8 per cent to 452.260 million units and N2.608bn, respectively.
The top traded stocks by volume were Medview Airline Plc (146.9 million units), NEM Insurance Plc (45.9million units) and Transcorp Hotels Plc (37.5 million units), while Zenith Bank Plc (N646.2m), Guaranty Trust Bank Plc (N345.6m) and MEDVIEW AIRline (293.9m) were the top traded stocks by value.
The losses not withstanding, performance across sectors was largely positive as three of five indices closed higher.
The Oil & Gas index yielded the most, with a 1.3 per cent gain due to price appreciations recorded in Forte Oil Plc and Conoil Plc while the Banking index gained 0.2 per cent on the back of price appreciations in Diamond Bank Plc, First City Monument Bank Plc and GTB.
The Consumer Goods index increased by 0.04 per cent as a result of the gains recorded in Nigerian Breweries Plc and Nascon Allied Industries Plc.
However, sell pressures in Dangote Cement, NEM Insurance and Niger Insurance dragged the industrial and insurance indices lower by 2.11 per cent and 0.69 per cent, respectively.
Investor sentiment strengthened as market breadth declined to 1.9x against 7.2x in the previous session, which was as a result of the 30 gainers that emerged against 16 decliners at the end of trading on Thursday.
The top performers were NPF Microfinance Bank Plc, Mutual Benefits Assurance Plc and Conoil Plc, whose respective share prices gained 10 per cent, 10 per cent and 10 per cent.
The top losers were UACN Property Development Company Plc, NEM Insurance and Niger Insurance, which saw their share prices decline by10 per cent, 9.2 per cent and 8.3 per cent, respectively.
The Federal Government of Nigeria has said it is targeting increasing manufacturing exports by $30 billion by 2025 through the development of Special Economic Zones.
This was disclosed by the Ministry of Industry, Trade and Investment in a statement.
According to the ministry, special economic zones had been identified by the Economic Recovery and Growth Plan as a major strategic tool to accelerate the implementation of the Nigeria Industrial Revolution Plan.
The ministry further explained that in achieving this, government envisioned the Made-in-Nigeria for Exports project and the Nigeria Export Processing Zone Authority to develop economic zones to world-class standards.
According to the statement, this would assist in positioning Nigeria as the manufacturing hub in sub-Saharan Africa and a major exporter of made-in-Nigeria goods and services.
“The project seeks to aid structural transformation of the Nigerian economy by increasing the manufacturing sector’s contribution to Gross Domestic Product to 20 per cent by 2025; contribute to sustainable inclusive growth by creating 1.5 million new manufacturing jobs in the initial phase of the project; increase and diversify foreign exchange earnings by increasing manufacturing sector exports to at least $30bn annually by 2025″ the ministry said.
The ministry further said that the project would start with a phase one that would focus on the development and upgrade of SEZs in 12 states across Nigeria, after which the initiative would be extended to other states in subsequent phases.
The project would also involve partnering with the private sector to develop new world-class SEZs in Abia, Katsina and Lagos as pilot projects to demonstrate proof of concept and provide models for future SEZ development in Nigeria.
The statement said the Nigeria SEZ Investment Company Limited had already been set up as the special purpose vehicle to deliver the Made-in-Nigeria for Export project and harness the Federal Government spending on SEZs.
“The Federal Executive Council has approved NSEZCO as the holding entity for all the Federal Government’s investments and proprietary interests in existing and future SEZs.
“The FEC approval also provided that all current and future capital appropriations for Project MINE be transferred to NSEZCO’s account, as soon as opening formalities are completed,” it added.
According to the statement, aggregation and harnessing of the Federal Government’s investment in a strong corporate special purpose vehicle “is to ensure the facilitation and mobilisation of additional capital from development finance institutions and private investors.”
The National Bureau of Statistics, NBS, has said that the nation’s Gross Domestic Product, GDP, grew to 1.81 percent (year-on-year) in real terms in the third quarter of 2018 compared to the 1.50 in the second quarter of the same year.
This, the NBS said in a report released on Monday, was aided by the non-oil sector of the economy.
According to the report, in nominal terms, aggregate GDP stood at N33.36 trillion while real GDP was estimated at N18.08 trillion.
Growth in Q3 was largely helped by the non-oil sector, which contributed 90.62 per cent to total GDP while the oil sector contributed 9.38 per cent to growth in the review period.
However, Oil GDP contracted by -2.91 per cent compared to -3.95 per cent in Q2 and 23.93 per cent in Q3 2017.
The report also showed that average daily oil production fell to 1.94 million barrels per day (mbpd), higher than that of the 1.84mbpd recorded in Q2 by 0.10 mbpd- but lower than the 2.02 mbpd recorded in the same quarter of 2017 by -0.08mbpd.
The report further showed that real growth of the oil sector was –2.91 per cent (year-on-year) in Q3, indicating a decrease of –25.94 percentage points relative to rate recorded in the corresponding quarter of 2017.
The non-oil sector however grew by 2.32 per cent in real terms in Q3, representing 0.28 percentage points higher than the 2.05 per cent in preceding quarter and by 3.08 percentage points higher compared to the -0.76 per cent recorded same quarter of 2017.
The NBS report said the non-oil sector was mainly driven by Information and communication sector while other drivers include agriculture, manufacturing, trade, transportation and storage and professional, scientific and technical services.
For the sectoral contribution of GDP growth in the period under review, The NBS report showed that information and communication sector contributed 10.55 per cent to real GDP while agriculture 29.25 per cent to real GDP.
Manufacturing contributed 8.84 per cent to growth while services accounted for 48.79 per cent as well as industries which contributed 21.97 percent to real growth.
Also, trade contributed 15.80 per cent to real GDP while finance and insurance 2.52 per cent to growth as well as construction which recorded 3.01 per cent to GDP.
Market capitalization on the Nigeria Stock Exchange shed N39.89bn on Wednesday as the gains recorded in the previous session were pared.
The market capitalisation, which stood at N11.255tn on Tuesday, dropped to N11.215tn on Wednesday, while the All Share Index declined by 0.35 per cent to settle at 30,704.98 basis points.
Major benchmarks closed in the red at the end of trading on the floor of the Exchange on Wednesday.
The NSE Oil/Gas Index slid by 2.99 per cent, emerging the biggest loser as sinking oil prices hit energy companies.
Sell pressures were witnessed in Seplat Petroleum Development Company Plc and Total Nigeria Plc.
The NSE Industrial Index was the second biggest loser, with a 1.14 per cent loss due to sell-offs in Dangote Cement Plc.
Similarly, the NSE Banking Index depreciated by 0.21 per cent on the back of major losses witnessed in Guaranty Trust Bank Plc and Zenith Bank Plc.
The NSE Consumer Goods Index was however the highest gainer, with a 1.18 per cent gain as major stocks such as Nestlé Nigeria Plc and Nigerian Breweries Plc recorded price appreciation.
The NSE Insurance Index trailed, gaining a meagre 0.23 per cent on the back of gains recorded in Lasaco Assurance Plc and Wapic Insurance Plc.
The volume and value traded weakened by 36.4 per cent and 19.5 per cent to 200.997 million units and N4.098bn, respectively.
Top traded stocks by volume were Zenith Bank (51.895 million units), Lafarge Africa Plc (38.652 million units) and FBN Holdings Plc (15.852 million units), while Zenith Bank (N1.2bn), Dangote Cement (N502.7m) and Lafarge Africa (N457.3m) were the top traded stocks by value.
Investor sentiment took a further dip to 1.3x from 1.8x recorded on Tuesday as the year-to-date loss dipped to -19.7 per cent.
There were twenty-three gainers and 18 lossers at the end of trading on Wednesday.
Forte Oil, which was the second highest gainer on Tuesday, advanced to top the list as the highest gainer on Wednesday, with a 9.85 per cent increase to N26.20 per share.
Diamond Bank Plc’s share price appreciated further, gaining 9.65 per cent as it closed at N1.25.
Access Bank Plc reversed the losses it made on Tuesday as it emerged the 12th highest gainer, with a 2.60 per cent increase to close at N7.90 per share.
Five other banks ― Unity Bank Plc, Wema Bank Plc, United Bank for Africa Plc, FBN Holdings Plc and Stanbic IBTC Holdings Plc ― were on the gainers’ list, despite the 0.21 per cent decline recorded in the banking index.
Abbey Mortgage Bank Plc was the biggest loser, with a 7.55 per cent share price depreciation.
Abbey Mortgage Bank, Seplat, Jaiz Bank Plc, Japaul Oil & Maritime Services Plc and Julius Berger Nigeria Plc, were the top five losers.
They recorded price depreciation of 7.55 per cent, 6.53 per cent, 6.12 per cent, 4.76 per cent and 4.29 per cent.
Figures released by the Central Bank of Nigeria (CBN) have shown that Nigeria’s foreign reserves rose by $1.518bn from $41.523bn on November 22 to $43.041bn as of December 17.
The reserves, which had suffered major declines in past months, had been maintaining a steady rise of recent.
The nation’s foreign exchange reserves fell from $45.838bn at the end of August to $41.533bn on November 21.
The CBN had earlier revealed that the reserves fell by $990.98m from $47.11bn in July to $46.128bn on August 23, 2018.
Records from the apex bank however showed that the external reserves were gradually moving on a recovery path.
CBN Governor, Godwin Emefiele, had said before that because crude oil was a major source of the country’s foreign exchange, the nation’s economy became sensitive to fluctuations in the price of crude oil.
“Significant declines in the price of crude oil not only reduced Nigeria’s export earnings, but the nation was also subjected to higher inflation and lower growth, given our dependence on imported goods,” Emefiele had said.
Nigeria’s President, Muhammadu Buhari on Wednesday gave an overview of the implementation of the N9.12 trillion 2018 budget, saying 67 per cent performance had so far been recorded by Ministries, Departments of Agencies (MDAs) of government.
The President revealed this when he presented the 2019 budget estimates at a joint session of the National Assembly in Abuja.
According to him, out of the total appropriation of N9.12 trillion, N4.59 trillion had been spent by Sept. 30, 2018, against the prorated expenditure target of N6.84 trillion.
He said: “This represents 67 per cent performance. Debt service and the implementation of non-debt recurrent expenditure, notably payment of workers’ salaries and pensions are on track.
“Despite the delay in the passage of the 2018 Budget on 20th June 2018, the sum of N820.57 billion had been released for capital projects as at 14th December, 2018. We have carried over capital projects that were not likely to be fully funded by year-end 2018 to the 2019 budget.’’
The President said the 2018 budget was based on a benchmark oil price of 51dollars, oil production of 2.3 million barrels per day and an exchange rate of N305 to the dollar.
He added that based on these assumptions, the federal government’s aggregate revenue of N7.17 trillion was projected to contribute to the 2019 budget of N9.12 trillion while the projected deficit of N1.95 trillion (or 1.73 percent of GDP) was to be financed mainly by borrowing.
“In 2018, average oil production up to end of the third quarter was 1.95 mbpd, as against the estimated 2.3 mbpd for the entire year. However, average market price of Bonny Light crude oil was higher (an average of $74 per barrel as at October) than the benchmark price of $51.
“As at the end of the third quarter, federal government’s actual aggregate revenue was N2.84 trillion, which is 40 percent higher than 2017 revenue.
“The overall revenue performance is only 53 percent of the target in the 2018 budget largely because some one-off items are yet to be actualized. We have now rolled this revenue item over to 2019,” he said.
While urging the lawmakers to expedite action for the passage of the 2019 budget, the President stressed the need for the legislature to partner with the executive arm of government for the benefit of Nigerians.