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According to the government, the strategic partners are expected to run the airline as a private sector initiative to avoid suffering the fate of defunct Nigeria Airways.

The previous national carrier, the Nigeria Airways, founded in 1958, was wholly owned and managed by the Federal Government before it went under in 2003.

Hadi Sirika, the Minister of State for Aviation, said on Wednesday that the government would not own more than five per cent of the new carrier. He made the comments while giving details of the airline at the Farnborough air show in England.

The government plans to launch the airline in December, making good on President Muhammadu Buhari’s election campaign promise.

Decades of neglect and lack of investment have left Nigeria with low-quality infrastructure seen as a hurdle to prosperity. The government has said that upgrading it would require private investment. “The initial capital is likely to be in the range of $US 150 to $300 million, in- vested in tranches over time from start up through the first five years of operation,” a government document stated.

It said the government would provide initial capital but did not state the sum or give further details.

The government will “facilitate the process for opening up the capital of the airline to private sector financial investors”, the document stated.

A private operator, sought through a Public Private Partnership (PPP) process, will manage the airline without interference, it said.

Nigeria Air would serve domestic and international markets and expect to have a fleet of 30 aircraft in five years with hubs in Lagos and Abuja, Nigeria’s two main cities.

British billionaire Richard Branson set up domestic and international carrier Virgin Nigeria in 2000, but pulled out in 2010 over what he said was interference by politicians and regulators.

The airline he created, which was later rebranded Air Nigeria, closed in 2012 after collapsing under N35 billion of debt which left it unable to pay staff, a former finance director of the company said at the time.

Nigeria is overhauling its aviation infrastructure and handing over its airports to private managers in order to improve the business environment for the industry and to attract investment, the document said. It said current air traffic in Nigeria is around 15 million passengers which is expected to grow at five percent per annum through to 2036.

 

Source: Sunday Sun.

The United State (U.S) product imports from the Organisation of the Petroleum Exporting Countries (OPEC) member countries dropped by 23 thousand barrels per day (tbpd) compared to a month before to stand at 301 tbpd.
Besides, OPEC has raised world oil demand by 1.65 million barrels per day (mbpd) in 2018 in its July monthly market report, unchanged from the previous month’s report, with expectations for total world consumption at 98.85 mbpd.
 
According to OPEC in its July oil market report, this represents a 14 per cent share of total US product imports.
 
In terms of the product supplier share, Canada and Russia maintained their position as first and second supplier to the US with shares of 25 per cent and 10 per cent, respectively.
 
However, imports from both countries were lower than the previous month by 121 tbpd and 86 tbpd, respectively.
 
India was the third largest product supplier to the US, up by 65 tbpd from the previous month.
 
Canada remained the top supplier to the US in April, accounting for 45 per cent of total U.S. crude imports.
 
Canada’s crude exports to the U.S. were up by 6 per cent, or 199 tbpd, compared to the previous month.
 
Saudi Arabia was the second largest supplier to the US with an 11 per cent share of total crude imports, closely followed by Iraq at 10 per cent.
 
Imports from Saudi Arabia were 138 tbpd higher m-o-m, while imports from Iraq were up by 122 tbpd.
 
Crude imports from OPEC Member Countries rose in April by 712 tbpd, or 28 per cent, compared to the previous month.
 
Imports from OPEC Member Countries accounted for 39 per cent of total US crude imports.
 
On crude oil demand projection, OPEC said the initial projection for 2019 indicates a global increase of around 1.45 mbpd, with annual average global consumption anticipated to surpass the 100 mbpd threshold.
 
Based on the first forecast for demand and non-OPEC supply for the year 2019, the demand for OPEC-15 crude next year is projected to decline by 0.8 mbpd to average 32.2 mbpd.
 
The Organisation for Economic Co-operation and Development (OECD) is once again expected to remain in positive territory, registering a rise of 0.27 mbpd with the bulk of gains originating in OECD America.
 
It noted that the non-OECD region is anticipated to lead oil demand growth in 2019 with initial projections indicating an increase of around 1.18 mbpd, most of which is attributed to China and India.
 
Additionally, a steady acceleration in oil demand growth is projected in Latin America and the Middle East.
 
According to secondary sources, OPEC crude production averaged 32.4 mbpd in first quarter of 2018, which is 0.1 mbpd higher than the demand for OPEC crude.
 
The report stated that in the second quarter, OPEC crude production stood at 32.2 mbpd, which is 0.3 mbpd lower than the demand for OPEC crude.
 
Source: The Business Insider
Brokers on the floor of Nigerian Stock Exchange in Lagos.
 
Continued share price depreciation on the equity sector of the Nigerian Stock Exchange (NSE), yesterday pulled the market capitalisation further down by N110 billion.
At the close of trading yesterday, All-Share Index (NSE-ASI) shed 303.16 absolute points, representing a decline of 0.81 per cent to close at 36,963.70 points, while year-to-date loss rose to 3.35 per cent.
 
Also, the market capitalisation declined by N110billion to close at N13.390trillion.
 
The depreciation was impacted by losses recorded in medium and large capitalised stocks, Okomu Oil, Stanbic IBTC Holdings, Lafarge Africa, International Breweries, and Julius Berger.
 
Analysts at Afrinvest Limited, said: “Despite the negative sentiment in the market, we anticipate a rebound in subsequent sessions as investors hunt for bargain opportunities.
 
Our view is further buttressed by the Relative Strength Index (RSI) of 36.1 points which is close to the oversold region.”
 
Market breadth closed negative, with 14 gainers versus 33 losers. Sovereign Trust Insurance recorded the highest price gain of eight per cent to close at 27kobo per share.
 
Wema Bank followed with a gain of 7.94 per cent to close at 68kobo, while Japaul Oil and Maritime Services appreciated by 6.45 per cent to close at 31kobo per share.
 
Mutual Benefits Assurance appreciated by 5.88 per cent to close at 36kobo, while Continental Reinsurance gained 3.45 per cent to close at N1.50 per share.
 
On the other hand, Capital Oil, and Julius Berger led the losers’ chart by 10 per cent each, to close at 27kobo and N24.30 respectively, while GlaxoSmithKline Consumer Nigeria followed with a loss of 9.97 per cent to close at N16.70 per share.
 
PZ Industries declined by 9.94 per cent to close at N15.40, while Consolidated Hallmark Insurance shed 9.68 per cent to close at 28kobo per share.
 
Also, the total volume traded declined by 32.84 per cent to 203.80 million shares worth N2.39billion traded in 4,178 deals.
 
Transactions in the shares of Transnational Corporation of Nigeria (Transcorp) topped the activity chart with 20.71 million shares valued at N26.56million.
 
Source: The Guardian
The Akwa Ibom State Government has signed a  Memorandum of Understanding (MOU) with SERGE Capital Investment Limited on the resuscitation of Ibom Science and Technology Park. 
 
Speaking on the occasion, the State Governor, Mr. Udom Emmanuel hinted that the Ibom Science and Technology Park is receiving priority attention from his Government as science and technology is the underpin of development across the world. 
 
The Governor who was represented by Secretary to the State Government, Dr. Emmanuel Ekuwem said at the event that was held in his conference room that in reviving the Ibom Science and Technology Park, the State will adopt a bottom up approach to ensure that those incubated at the park would move up to set up cottage industries in the local communities. 
 
He said the initiative is geared towards enhancing the human empowerment agenda of the State Government and promised the investors of Government's cooperation and support in the completion of the project. 
 
Speaking earlier, the Commissioner for Science and Technology, Prof. Nse Essien who described the event as epochal stressed that the signing of the MOU is a culmination of series of discussions with the investors on the completion of the Ibom and Science and Technology Park. 
 
He said the State Governor, Mr. Udom Emmanuel is determined to ensure that Akwa Ibom State has become a front line State in science and technology and gave the assurance that the science and technology park when completed will open a window of vast opportunities for young scientists and innovators. 
 
The President of SERGE Capital Investment Limited, an Australian based firm with Chinese affiliation, Mr. Greg Todd in his remarks said they will combine resources from Australia, China and the local communities to develop industry, agriculture, infrastructure and trade under a model that will be world class.
 
He assured that his outfit is ready to reinvent the operational philosophy of the science park in conformity with world leading technologies in order to ensure sustainable development of economic, environmental and social sectors of the State.
 
Mr. Greg Todd and the Company Secretary of SERGE Capital Investment Limited, Mrs. Sally Conoid signed the MOU on behalf of the company while the Commissioner for Science and Technology, Prof. Nse Essien, the Executive Chairman of Akwa Ibom Investment Corporation (AKICORP), Dr. Elijah Akpan, the Chairman of Foreign Direct Investment in the State, Mr. Gabriel Ukpe and the Permanent Secretary in the office of Secretary to the State Government, Mrs. Eno Offiong signed on behalf of the State Government. 
 
The event featured a presentation of some inventions by Mr. Nse Esu, an Akwa Ibom budding scientist and innovator. Some of the inventions presented include, Electric Source Indicator, Automatic Source Control System, Automatic Change Over Switch, Solar Charge Controller, Automatic Water Pump Control Switch and Generator Shutdown System.
 
 
Central Bank of Nigeria (CBN) on Tuesday injected $210 million into the inter-bank foreign exchange (forex) market.
It offered $100 million to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got $55 million.
 
Another $55 million was allocated to invisibles such as tuition fees, medicals and Basic Travel allowance (BTA).
 
Meanwhile, the naira continued to exchange at an average of N360/$1 in the Bureau De Change (BDC) segment of the market on Tuesday, July 17.
 
In a statement, the bank’s Acting Director of Corporate Communications Department, Isaac Okorafor, confirmed the figures and restated the bank’s resolve to continue to intervene in the interbank forex market, in line with its pledge to sustain liquidity in the market and maintain stability.
 
Okorafor maintained that the continued forex intervention was to ensure that the apex bank met genuine customers’ requests in various segments of the market.
 
 
The Guardian.

Nigeria’s government has taken it upon themselves to repatriate a large number of its citizens who were tricked into buying football World Cup passes to travel to Russia for the world cup 2018. This was declared by the president’s spokesperson on Monday.

Few of them spent days sleeping at Moscow’s Vnukovo airport while others were subjected to staying the country’s embassy in the Russian capital. They had purchased Fan IDs for $700(250,000), which served as visas for the duration of the tournament, with the hope of securing work or even professional football contracts. Others claimed they came to watch the tournament but they said the bogus travel agencies cancelled their return flights and kept the cash to themselves.
The director-general of Nigeria’s National Agency for the Prohibition of Trafficking in Persons, Julie Okah-Donli, said they were aware of the situation and were investigating. Garba Shehu, President Muhammadu Buhari’s spokesperson revealed in a statement that the foreign and aviation ministries had taken the necessary actions to bring the Nigerians back.

 

Source: News24

The International Monetary Fund (IMF) has raised its growth projection for the Sub-Saharan Africa’s economy to 3.8 percent in 2019 from 2.8 percent in 2017, implying 0.1 percentage point increase compared with its April, 2018 projection.

The fund also upgraded Nigeria’s 2019 Gross Domestic Product (GDP) by 0.4 percentage point to 2.3 percent.

The IMF disclosed this in its World Economic Outlook (WEO) Update for July 2018 titled “Less Even Expansion, Rising Trade Tensions” released on Monday.

According to the release, the upgraded forecast “reflects improved prospects for Nigeria’s economy” and supported by the rise in commodity prices.

The global monetary authority said Nigeria’s growth is expected to rise from 0.8 percent in 2017 to 2.1 percent in 2018 and 2.3 percent in 2019 on the back of an improved outlook for oil prices.

But, it left its 2019 growth prediction for South Africa unchanged at 1.7 percent, South Africa is Africa’s most-industrialized economy and hasn’t grown at more than 2 percent a year since 2013.

Nigeria and South Africa’s economies account for about half of the Africa’s GDP.

In May, the National Bureau of Statistics (NBS) released the GDP report for the first quarter of 2018 indicating that Nigeria economy grew by 1.95 percent from 2.11 percent recorded in Q4 2017.

“Despite the weaker‑than-expected first quarter outturn in South Africa, the economy is expected to recover somewhat over the remainder of 2018 and into 2019 as confidence improvements associated with the new leadership are gradually reflected in strengthening private investment,” the fund said.

Nigeria’s economy is recovering after it plunged into recession in 2016 after a drop in the prices of crude oil in the international market, owing to its over dependence on the oil, the country’s main source of foreign exchange earnings.

Credit: TheRipples.com

Economic uncertainties and slowdown of market activities have continued to weaken investors’ appetite for equities on the floor of the Nigerian Stock Exchange (NSE) as the All-Share Index and market capitalisation depreciated further by 0.6%. 
 Specifically, at the close of transactions last week, the market capitalistaion, which stood at N13.637 trillion when the market reopened for transactions on July 9, lost N94 billion or 0.6 per cent, to close at N13.545 trillion at the weekend.
  Also, the ASI depreciated by 255.16 points from 37,647.93 to 37,392.77.
 

Furthermore, turnover of 1.219 billion shares worth N17.333 billion were recorded in in 17,362 deals by investors on the floor of the Exchange lower than 1.842 billion shares valued at N16.594 billion that changed hands in 18,941 deals during the preceding week.
 Similarly, all other indices finished lower with the exception of the NSE oil/gas and the NSE Lotus II Indices that appreciated by 0.71 per cent  and 0.37 per cent respectively.
  Analysts attributed the downturn to the impact of 2019 elections and ongoing security challenges that have bedeviled the nation’s political space.
  For instance, the Chief Reseatch Officer of Investdata Consulting Limited, Ambrose Omodion, said: “The unfolding events regarding weekend’s Ekiti State governorship election confirm the fears among investors and analyst.
 
“For many, happenings around the July 14, 2018, election continue to feed the polity with unnecessary wrong signals that none of the regulators or government is doing much to play down, ahead of general election in 2019.
“We expect a slowdown in the decline that leads to reversal soon as Q2 earnings season kicks off any moment from now, since equities remain undervalued with higher yields. Investors should review their position in line with their investment goals and act as events unfolds in the global and domestic environment.

 “However, we would like to reiterate our advice that investors should go for equities with intrinsic value, especially during this season were Q2 interim dividend payment are expected in the market arena very soon.”
  Analyst at Codros Capital Limited said the continued selloffs and the absence of a near term one-off positive catalyst dampen the outlook for equities in the short-to-medium term, adding that strengthened macroeconomic fundamentals remain supportive of gains in the long term.

 
Vetiva Research Limited said: ”With market sentiments staying negative after a week of bearish trading, we expect the tepid sentiments to filter into the market at week’s opening.”
  Further breakdown of last week’s trading showed that the financial services Industry led the activity chart with 842.823 million shares valued at N9.587 billion, traded in 9,231 deals; thus contributing 69.15 per cent to the total equity turnover volume.
 The consumer goods industry followed with 113.667 million shares worth N4.657 billion in 3,120 deals, while the services industry ranked third with a turnover of 105.623 million shares worth N519.813 million in 593 deals.
  Trading in the top three equities- Access Bank Plc, Zenith International Bank Plc and Nigerian Aviation Handling Company Plc accounted for 497.482 million shares worth N6.619 billion in 2,251 deals, contributing 40.82 per cent to the total equity turnover volume.
 

Also traded during the week were 79,304 units of Exchange Traded Products (ETPs) valued at N1.491 million and executed in 18 deals, compared with 25,220 units valued at N454,438.90 that were transacted last week in four deals.
  A total of 13,517 units of Federal Government valued at N14.899 million was traded this week in 30 deals, compared with a total of 2,359 units valued at N2.188 million transacted last week in 24 deals.

Credit: The Guardian

Persistent price depreciation in the shares of most highly capitalised firms on the Nigerian Stock Exchange (NSE), yesterday dragged the All-share index further by 0.07 per cent.
Specifically, at the close of transactions yesterday, the All-Share Index (NSE-ASI) shed 26.81 absolute points, representing a decline of 0.07 per cent to close at 37,226.44 points.
Also, the market capitalisation declined by N10billion to close at N13.485trillion.The decline was occasioned by losses recorded in medium and large capitalised stocks, amongst which are; Beta Glass, Forte Oil, Nigerian Breweries, Dangote Sugar, and GlaxoSmithKline Consumer Nigeria.
 
Analysts at Afrinvest Limited said: “As highlighted, we continue to see some late bargain hunting in the market, albeit, insufficient to upturn market performance. Hence, we expect to see a similar trend in today’s trading activity.”
 
Market breadth closed negative, with 15 gainers versus 30 losers. Custodian and Allied Insurance recorded the highest price gain of 8.45 per cent to close at N6.80 per share. International Breweries gained 5.61 per cent to close at N40.50.
 
Multiverse Mining and Exploration appreciated by five per cent to close at 21kobo per share.Vitafoam Nigeria added by 4.52 per cent to close at N3.24, while Japaul Oil & Maritime Services gained 3.03 per cent to close at 34kobo per share.
 
On the other hand, Beta Glass led the losers’ chart by 10 per cent, to close at N81 per share. Tantalizers followed with a decline of 9.09 per cent to close at 30kobo, while McNichols shed 8.99 per cent to close at 81kobo, per share.
 
Nigerian Aviation Handling Company (NAHCO) declined by 7.25 per cent to close at N3.71, and Honeywell Flour shed 6.37 per cent to close at N1.91 per share.However, the total volume traded rose by 22.08 per cent to 350.47 million shares worth N4.6billion traded in 3,228 deals. Transactions in the shares of NAHCO topped the activity chart with 88.13 million shares valued at N483.47million. Access Bank followed with 42.87 million shares worth N428.75million, while Zenith Bank traded 40.84 million shares at N980.23million.
Sovereign Trust Insurance traded 33.77 million shares valued at N7million, while International Breweries transacted 20.95 million shares worth N777.03million.
  
 
Source: The Guardian
Danvic Petroleum International Corporation has unveiled plans to establish a privately owned Petroleum Institute/University to bridge the skill gap in the Nigeria’s oil and gas sector.
Besides, the company has produced the second set of graduates from the Danvic Petroleum Training Centre after six months of practical geosciences training.
 
The Managing Director of the company, Dr. Mayowa Afe, made this disclosure at the 2nd graduation ceremony of Danvic Petroleum Centre in Lagos on Tuesday.
 
According to him, the petroleum university is expected to bridge the gap between the Nigerian university theory and the practical knowledge needed in the oil and gas industry.
 
He disclosed that the university would also contribute to the course of local content development in Africa by grooming students to become employable in the oil and gas sector, particularly in the geosciences and petroleum engineering.
 
Afe said that geoscience graduates from Nigerian universities are lacking in the necessary skills and exposure that oculd guarantee their employability in a multi-task world-class geoscience environment.
 
He said that this unfortunate scenario over the years before the advent of the Nigeria Government local content policy has led to many international oil and gas companies who are in the country for business to source for personnel abroad.
 
Afe who is also the President, Oil and Gas Trainers Association (OGTAN), said that some Nigerian students studying abroad were proffered to detriment of their colleagues studying in Nigerian universities.
 
This, he said, led to the establishment of Danvic Petroleum Training Centre, which would soon attain the status of a university with the aim of boosting the Nigerian government local content policy and interventions in the oil and gas industry.
 
Speaking on the training programme, Afe explained: “The Danvic Petroleum School is a six months intensive programme designed for graduates and young professionls of geoscience to take courses on all aspect of oil and gas ranging from exploration to production stages.
 
The six months courses are divided into four modules.
 
Module one and two comprises general lectures and theory while module three involves practical sessions taught by practicing geoscientists and engineers from eh oil and gas industry.
 
 
Credit: The Conversation
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