Vice President Yemi Osinbajo says there is a need to invest in agriculture to take the nation out of poverty.
 
He made the recommendation on Thursday in Abuja while launching the Green Imperative, a project of the Federal Government in collaboration with the Brazilian government.
 
“Frankly, we believe we cannot bring our nation out of poverty, especially the large numbers of the poor without significant investments in agriculture and, of course, mechanised agriculture,” the Vice President was quoted as saying in a statement by his media aide, Mr Laolu Akande.
 
He added, “But also because we know the sheer number of young people who are coming into our population in the next 10 – 15 years, will certainly not only need to be fed, but will also need to have jobs, and the sort of jobs that these young people will want will not be jobs requiring hoes and cutlasses.”
 
Professor Osinbajo noted that the young generation would need more dignified jobs while the government would be able to achieve more with mechanisation.
 
He stressed that the only way the nation can make the quantum leap required to advance its economy and provide the number of jobs needed was simply what the government was doing.
 
The Vice President highlighted the progress made so far, saying there would be a combination of service centres where technical capacity and training would take place.
 
According to him, the major dividends of all these are the hundreds of thousands of quality jobs that young men and women will be able to access.
 
“Today, we have made a significant difference in our journey, not just in self-sufficiency in food production, but also in creating the kinds of jobs that we could have from agriculture,” said Osinbajo.
 
“Also crucial is the fact that the private sector is an important component of this particular enterprise … we have ensured that this will be private sector driven and we have here today, both Nigerian and Brazilian investors committed to investing and working on this project.”
 
He said President Muhammadu Buhari’s dream of self-sufficiency in food production has moved closer to realisation, as the nation would be able to produce food for its people in the next couple of years.
 
The Vice President was also hopeful that there would be employment not just in agriculture, but in all of the agro-allied value chain and manufacturing.
 
 
Source: Channels
Investors at the Nigerian Stock Exchange (NSE) on Wednesday gained N120.5 billion as the stick market continued its appreciation for the past five consecutive trading days.
 
The market capitalisation of listed equities jumped from N11.238tn on Tuesday to N11.359tn on Wednesday, with the All Share Index rising by 1.07 per cent to 30,460.68 basis points.
 
The gains, analysts say were driven by price appreciation in Dangote Cement Plc, Guinness Nigeria Plc and United Bank for Africa Plc.
 
The gains moderated the market’s year-to-date loss to -3.1 per cent, while investor sentiment strengthened to 1.5x from 1.4x on Tuesday.
 
Activity level was however mixed as volume traded increased by 1.9 per cent to 305.802 million units, while value traded declined by 35.3 per cent to N2.102bn.
 
Top traded stocks by volume were Diamond Bank Plc (141.2 million units), Fidelity Bank Plc (18.6 million units) and Guaranty Trust Bank Plc (17.4 million units) while the top traded stocks by value were GTB (N577.7m), Zenith Bank (N357.1m) and Diamond Bank (N296.6m).
 
Performance across sectors was also mixed with three sectoral indices closing in the green.
 
The insurance index led the gainers with a 2.32 per cent gain; the industrial goods index rose by 1.70 per cent, and the consumer goods index advanced by 0.24 per cent.
 
On the other hand, the banking sector was the major loser, with a 0.68 per cent depreciation, while the oil and gas index shed 0.01 per cent.
 
After Wednesday trading, 24 stocks advanced while 16 others recorded losses.
 
Topping the gainers were Sovereign Trust Insurance Plc, Veritas Kapital Assurance Plc, Guinness, Honeywell Flour Mill and NEM Insurance, having their share prices gaining 10 per cent, 10 per cent, 9.65 per cent, 9.57 per cent and 9.57 per cent, respectively.
 
However, Beta Glass Plc, Northern Nigeria Flour Mills Plc, Resort Savings and Loans Plc, PZ Cussons Nigeria Plc and Neimeth International Pharmaceuticals Plc, led the losers, with their respective share prices declining by 10 per cent, 9.20 per cent, 8.82 per cent, 8.33 per cent and 4.69 per cent.
 
 
Source: PmNews
Nigeria has contributed 97 out of the 360 companies listed in the second edition of the London Stock Exchange Group’s Companies to Inspire Africa report.
 
The report, which identifies 360 companies in 32 countries in Africa, was launched on Wednesday with Kenya also contributing 66 companies.
 
“Nigeria further built on its leading position established in the 2017 report with strong representation from the industry and technology and telecoms sectors,” the LSEG said in an emailed statement.
 
The report, with seven major sectors represented, featured companies including small entrepreneurial businesses to well-established corporations.
 
According to the report, consumer services, industry and agriculture are the three biggest sectors, contributing over 50 per cent of the companies featured, while technology and telecoms, and financial services together represent over 25 per cent of firms.
 
Healthcare and education and renewable energy also featured strongly.
 
Some of the Nigerian firms listed are Kian Smith Trade & Co Limited, which is building the country’s first gold refinery; FSDH Merchant Bank Limited; Ladol Integrated Logistics Free Zone Enterprise; Jumia; Asharami Synergy Plc, BudgIT Foundation; Interswitch Limited; Ensure Insurance Plc; Lagos Business School, Pan-Atlantic University; North South Power Company Plc; Leadway Assurance Company Limited; Farmcrowdy Limited and Venia Group.
 
According to the Chief Executive Officer, LSEG, David Schwimmer, the firms listed in last year’s report had already realised significant progress and achievements in the last 12 months in a variety of ways, including pursuing IPOs and issuing bonds to grow, while some had also undertaken cross-border expansion, both within the African continent and globally.
 
Schwimmer said: “London Stock Exchange Group’s ‘Companies to Inspire Africa’ report showcases inspirational and entrepreneurial businesses from across the African continent, representing a wide variety of industries and countries. It is particularly encouraging to see the increasing influence of women in leadership roles in these fast-growing companies, playing a pivotal role in shaping the future of African business.
 
“These high-growth companies have the potential to transform the African economy and become tomorrow’s job creators. At LSEG, we are committed to helping companies realise that potential and we are pleased to highlight and celebrate the company success stories behind one of the world’s fastest growing markets.”
 
The report was produced in partnership with African Development Bank Group, CDC Group, PwC and Asoko Insight, and the report is sponsored by Instinctif Partners and Stephenson Harwood.
 
 
Source: The Ripples
A report from the National Bureau of Statistics (NBS) has shown that Nigeria recorded crude oil export worth N11.5 trillion in nine months, from January to September 2018.
 
The figure is a 48.01 per cent rise from N7.77 trillion recorded in similar period in 2017.
 
The figure is also over N2 trillion more than the N9.12 trillion budgeted for 2018 and about N3 trillion more than the 2019 budget proposal.
 
Data from the NBS Foreign Trade Statistics for the Third Quarter of 2018, showed that crude oil export in the nine-month period accounted for 81.8 per cent of total exports recorded in the Nigerian economy in 2018.
 
According to the report, crude oil export in the first quarter of 2018, appreciated by 51.05 per cent compared to N2.37 trillion recorded in the first quarter of 2017; while in the second quarter of 2018, crude oil export stood at N3.77 trillion, appreciating by 55.14 per cent from N2.43 trillion recorded in the same period of 2017.
 
The report also showed that third quarter 2018 crude oil export appreciated by 39.17 per cent from N2.97 trillion recorded in third quarter 2017 to N4.15 trillion.
 
“Crude oil exports in third quarter 2018 was 10.03 per cent more than the value recorded in second quarter 2018 and 39.5 per cent higher than the value recorded in third quarter 2017. Other oil products export in third quarter 2018 was 5.3 per cent more in value than second quarter 2018 and 12.68 per cent higher than third quarter 2017,” the NBS report noted.
 
Breaking down exports in the third quarter of 2018, the report stated that crude oil and Liquefied Natural Gas [LNG], export stood at N4.147 trillion, N469.87 billion respectively, other petroleum gases export stood at N27.85 billion.
 
Others are liquefied butane and liquefied propane export which stood at N17.66 billion and N13.73 billion respectively; kerosene type jet fuel export stood at N7.4 billion, while the lubricating oil export stood at N6.84 billion.
 
The report also named India as the highest importer of Nigeria’s crude oil, purchasing N764.88 billion worth of the commodity; followed by Nigeria’s crude oil export of N522.12 billion and N500.31 billion to Spain and France respectively.
 
Furthermore, the NBS disclosed that crude oil from Nigeria was exported to South Africa, Netherlands, Indonesia, Brazil and United Kingdom, valued at N335.28 billion, N276.37 billion, N256.3 billion, N226.2 billion and 206.3 billion respectively.
 
United States and Canada bought Nigeria’s crude oil worth N201.65 billion and N199.01 billion respectively in the third quarter of 2018.
 
The report noted: “Nigeria’s external trade totalled N9.026 trillion during the third quarter of 2018. Compared to the value of N6.903 trillion recorded against the second quarter, a rise of N2.122 trillion or 30.7 per cent was indicated.
 
“The total export component of this trade was N4.854 trillion, representing an increase of 7.8 per cent over second quarter 2018 and 35.7 per cent over third quarter 2017.”
 
 
Source: The Routers
The Central Bank of Nigeria (CBN) on Friday, intervened in the Retail Secondary Market Intervention Sales by injecting the sum of $263 million, the first in 2019.
 
A statement by the Director, Corporate Communications at CBN, Isaac Okorafor, on Friday, indicated that the apex bank also injected CNY39m into the sector for a combination of spot and short-tenored forwards, arising from bids received from authorised dealers.
 
According to figures from CBN, the US dollar-denominated interventions were for requests in the agricultural and raw materials sectors, while the Yuan sale was for payment of Renminbi-denominated letters of credit for agriculture as well as raw materials.
 
According to Okorafor, the move was in furtherance of the CBN Governor’s commitment to ensuring foreign exchange liquidity in the system as well as boosting trade and production.
 
He revealed that the CBN would sustain its intervention through the sale of foreign exchange to all segments of the market to meet all legitimate foreign exchange demand while also striving to achieve exchange rate stability in the market in the weeks ahead.
 
Okorafor also disclosed that the CBN Governor, Godwin Emefiele, will further unfold the bank’s plans for the year during the first Monetary Policy Committee meeting for the year scheduled to hold between 21st and 22nd January, 2019.
 
 
Source: The Ripples
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.
 
 
Source: NAN
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.
 
 
Source: The Ripples

The Nigerian stock market on Tuesday continued its negative trend as investors lost N135.8 billion at the end of trading on the floor of the Nigerian Stock Exchange (NSE).

This followed decline in the share prices of major banks in the country, with banking index dipping by 3.6 percent in sustained losses for the fourth straight trading sessions.

The market capitalisation of equities listed on the NSE dropped from N11.336 trillion on Monday to N11.200 trillion on Tuesday, while the All-Share Index declined by 1.20 per cent from 30,400.28 basis points on Monday to 30,036.15 bps on Tuesday. The year-to-date loss worsened to -4.4 per cent.

Also the level of activity weakened as volume traded declined by 20.1 per cent to 216.248 million units and value traded fell to N2.669 billion, lower by 2.8 per cent.

The top traded stocks by volume were Zenith Bank (32.4 million units), Transnational Corporation of Nigeria (26.4 million units) and GTB (18.7 million units), while Zenith Bank (N840.9m), GTB (N608m) and Dangote Cement Plc (N596.5bn) were the top traded stocks by value.

Again, sectoral index closed in the negative as four closed in the red.

The banking index shed the most, losing 3.6 per cent following sell-offs in GTB and UBA, while the insurance index followed with a loss of 3.3 per cent as a result of the price depreciation recorded by NEM Insurance Plc and Wapic Insurance.

The oil and gas index lost 1.4 per cent on the back of losses in Oando Plc and Forte Oil Plc, while the consumer goods index depreciated by 0.5 per cent as Flour Mills of Nigeria Plc and International Breweries Plc recorded major share price depreciation.

The industrial goods index however emerged as the lone gainer, with a 0.5 per cent increase following gains in Lafarge Africa Plc and Cement Company of Northern Nigeria Plc.

Investor sentiment improved as market breadth inched up to 0.5x, against 0.4x recorded on Monday.

Fourteen stocks recorded gains while 27 stocks that declined.

John Holt Plc, Okomu Oil Palm Plc, Union Bank Nigeria Plc, Lafarge Africa and Honeywell Flour Mill Plc, which saw price gains of 9.09 per cent, 7.93 per cent, 3.45 per cent, 3.08 per cent and 2.70 per cent, respectively to lead as best performing stocks.

On the other hand, the worst-performing stocks on Tuesday were NEM Insurance, Northern Nigeria Flour Mills Plc, Wapic Insurance, Unity Bank Plc and Learn Africa Plc, which saw their respective share prices decline by 9.40 per cent, 9.38 per cent, 9.09 per cent, nine per cent and 8.82 per cent.


Source: The Ripples

Forbes has rated Nigeria as 110th best place in the world to do business in 2019 out of 161 countries that were graded.
 
The country also comes 14th in Africa, behind South Africa (59), Morocco (62), Seychelles (66), Tunisia (82), Botswana (83), Rwanda (90), Kenya (93), Ghana (94), Egypt (95), Namibia (96), Senegal (100), Zambia (103) and Cape Verde (104).
 
The list is topped by United Kingdom (1), Sweden (2), Hong Kong (3), Netherlands (4), New Zealand (5) and Canada (6).
 
The United States of America comes in the 17th position below Ireland and Finland.
 
Forbes said on the criteria for the rating: “We gauged the best countries for business by rating nations on 15 different factors, including property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape and investor protection. Other metrics included were workforce, infrastructure, market size, quality of life and risk. Each category was equally weighted.
 
“The data is based on published reports from Freedom House, Heritage Foundation, Property Rights Alliance, United Nations, Transparency International, World Bank Group, Marsh & McLennan and World Economic Forum.”
 
Nigeria was rated 115 out of 153 assessed countries in the previous year with a GDP growth of -1.6 per cent and GDP per capita given as $2,200.
 
 
Source: NAN
The Lagos Chamber of Commerce and Industry has called on the Federal Government to expidite action on the diversification of the Nigerian economy.
 
According to the chamber, this has become imperative because of the challenges facing the economy as a result of the recent downward trend in prices of crude oil in the international market.
 
The prices of crude has continued its free fall of recent and it currently below the benchmark for the 2019 budget put at $60 per barrel.
 
The LCCI, in its 2019 economic outlook released on Friday, said there was a need for some adjustments to forestall any impending shock and the risk of the country sliding into another recession.
 
The report, signed by its Director General, Mr. Muda Yusuf, the LCCI noted that given the challenging economic conditions, key policy reforms would be imperative to support and sustain macroeconomic stability.
 
The policy reforms, the chamber wants government to give priority include a foreign exchange management framework that reflects the market fundamentals, the acceleration of the economic diversification agenda, normalisation of Lagos ports environment and the oil and gas sector reform, (especially the Petroleum Industry Bill).
 
The chamber also listed the reduction in the cost of governance at all levels, and the improvement in the domestic revenue (particularly independent revenue) to reduce volatilities of government revenues, pointing out that the Nigerian economy had remained fragile with the high dependence on the oil sector for revenue and foreign exchange earnings.
 
“Although oil revenues increased with recovering oil prices in 2018, the impact on the economy was subdued by the huge foreign exchange commitments to petroleum product importations and the inherent subsidy. The high debt service obligations were also major constraints to the growth of the economy.
 
“With the limited progress in the ongoing effort to diversify government revenue sources, the performance of the oil and gas sector would remain a critical factor that would shape the outlook of the economy in 2019.
 
“According to estimates by Capital Economics’ analysts, every $10-per-barrel fall in oil prices will cause a three to five per cent decline of the Gross Domestic Product in most of the Gulf economies, and a slowdown of 1.5 to two per cent of GDP in Russia and Nigeria on an annualised basis”, the chamber said in the report.
 
The LCCI further said the outlook will depend to a large extent on developments in the oil and gas sector and the political will to undertake far-reaching reforms, beginning with the oil and gas sector.
 
 
Source: The Ripples
  1. Opinions and Analysis

Calender

« January 2020 »
Mon Tue Wed Thu Fri Sat Sun
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31