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CBN injects $205m as Naira falls to N379/$

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  • Reps move to get more revenue sources for maritime sector

The Central Bank of Nigeria (CBN) yesterday injected $205 million into the foreign exchange market even as the naira depreciated to N379 per dollar in the parallel market.

Acting Director, Corporate Communications Department, CBN, Mr. Isaac Okoroafor confirmed the dollar injection in a statement yesterday.

According to the statement, “The CBN again injected over $205 million in to the foreign exchange market. “A breakdown of what market watchers termed as another massive intervention indicated that the sum of $100 million was released for the wholesale segment of the market for both spots and forwards.

“Also, Basic Travel Allowance (BTA) which comes under invisibles segment garnered $50 million while the Small and Medium Scale Enterprises (SME) segment got $55 million.

Okoroafor also disclosed that the Investors and Exporters segment of the market had so far recorded a trade volume in the sum of $1.1 billion from both the CBN and autonomous windows which according to him, was an indication of the appreciable level of confidence in the foreign exchange management by foreign investors and autonomous suppliers of foreign exchange to the market.”

Meanwhile the naira depreciated by N4 against the dollar in the parallel market yesterday.  Vanguard survey revealed that the parallel market exchange rate rose to N379 per dollar at the close of business yesterday from N375 per dollar on Friday.

President Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe confirmed this development to Vanguard. He said the depreciation was caused by sudden increase in demand for dollar between Saturday and yesterday.

He however expressed optimism that the naira will appreciate today as the CBN is expected to sell $20,000 to each of the 3145 bureaux de change (BDC) today.

In the meantime, Speaker of the House of Representatives, Yakubu Dogara, yesterday revealed that as part of efforts of the House to improve Nigeria’s revenue sources, eight laws related to the maritime sector were undergoing amendments to position it for optimum performance.

Speaking at a public hearing organised by the House Committee on Ports, Harbours and Waterways on eight maritime industry-related Bills in the National Assembly, the Speaker noted that when passed, they will address issues that have impeded the ability of the sector to be a major source of foreign exchange the country is in dire need of.

He explained: “These Bills are indeed very important and more so now that we as a country are rethinking our economic master plan with the aim of avoiding a future relapse into the kind of nail biting recession which we have just exited from by identifying and strengthening other sources of government revenue.

“The Maritime sector is one such key source of huge revenue, especially of the much needed foreign exchange, which potentials have, unfortunately, been grossly under realized. This explains the importance which the present Assembly attaches to Maritime Sector reform Bills, eight of which this committee is presenting to the public for scrutiny and input today. It is evident that the determination of this House to re-engineer and reposition this sector for optimum performance is not in doubt.”

Some of the eight Bills under consideration is: A Bill for an Act to Repeal the National Inland Waterways Authority Act, and Re-enact the National Inland Waterways Authority Act; and a Bill for an Act to Amend the National Inland Waterways Authority Act, to specify the tenure of Office of the Secretary and empower the Authority to receive donations and for other related matters, seeking to awaken the consciousness of Nigerians to God’s natural roads and rails provided free to 28 States and the FCT in form of inland waterways.

However, in his presentation, the Minister of Transportation, Chibuike Amaechi called for an outright repeal of the National Inland Waterways Authority (NIWA) Act as the position of the executive arm.

Amaechi argued: “The NIWA amendment Bill as proposed and sponsored by  Gabriel Onyenweife was for an amendment to specify the tenure of office of the Secretary, empower the Authority of donation and for other related matters, whereas the Federal Government’s reform is advocating a repeal of the old NIWA Act to create new Authority that will be a landlord and Technical Regulator of the Inland Waterways, create and promote an environment for private sector participation in an Economic Regulatory regime.”

Speaking to the intendment of the bills, Dogara added that they will “position our maritime sector to deliver efficient services in a safe, secure and customer friendly environment, generate employment as well as develop capable local manpower, which will contribute significantly to the nation’s GDP and provide a formidable alternative to oil and gas in terms of revenue.”

He also noted that the 8 Bills undergoing public hearing, in addition to the recently passed National Transport Commission Bill, is a fulfilment of the 8th Assembly’s Legislative Agenda, which was adopted by the House as a working and guiding document.

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Economy

Nigeria Loses 50% Of Agricultural Produce Post-harvest – FAO

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Nigeria Loses 50% Of Agricultural Produce Post-harvest – FAO

Mr Ibrahim Ishaka, Food System/Nutrition Specialist at the Food and Agriculture Organisation (FAO) of the United Nations, revealed that Nigeria loses around 50% of its agricultural products along the food supply chain.

Ishaka disclosed this in an interview with the Newsmen on the sidelines of an FAO-organised training in Yola on Saturday.

He explained that food waste posed significant challenges to Nigeria’s agricultural sector, impacting food security, economic growth, and environmental sustainability.

“Some of these challenges include technological barriers, inefficient harvesting techniques, pest infestations, and lack of access to modern farming tools, all of which contribute to losses during harvest, largely influenced by consumer behaviour,” he said.

Ishaka further highlighted additional factors contributing to post-harvest losses, including inadequate storage facilities, poor handling practices and poor transportation infrastructure.

“These factors result in significant losses, especially for perishable goods such as fruits and vegetables.

He also noted that inefficient food processing methods, improper packaging, inadequate storage, and unhealthy consumption habits further exacerbate food waste.

“The nutrition expert highlighted several FAO initiatives promoting nutritious and sustainable practices within communities, focusing on reducing post-harvest losses, improving hygiene, and ensuring sanitation.

“These initiatives include investing in post-harvest infrastructure, building community capacity, training, and empowerment programmes, among others.

“I firmly believe that the key to empowering people, particularly in the northeast region, lies in giving them the power to make informed decisions and the power to educate others,” he said.

Ishaka mentioned the establishment of several FAO-supported centres that produce and distribute locally nutritious foods, such as ‘tom brown,’ to combat malnutrition and food insecurity in the region.

Ishaka mentioned the establishment of several FAO-supported centres that produce and distribute locally nutritious foods, such as ‘tom brown,’ to combat malnutrition and food insecurity in the region.

“These centres are run by local communities, promoting community-led initiatives to improve food security.”

He expressed optimism that the training would have a long-lasting impact on participants and their communities, enhancing overall well-being and food security through the adoption of best nutrition practices.

This initiative is part of the “Emergency Agriculture-Based Livelihoods Sustenance for Improved Food Security” programme, targeting Borno, Adamawa, and Yobe, with support from USAID. 

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Oil, Gas Industry Owes FG $6bn, N66bn – NEITI Report

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Oil, Gas Industry Owes FG $6bn, N66bn – NEITI Report

The Nigeria Extractive Industries Transparency Initiative (NEITI), says outstanding collectable revenues due to the Federal Government in the oil and gas industry have risen to 6.071 billion dollars and N66.4 billion as of June 2024, respectively.

NEITI disclosed this on Thursday in Abuja at the public presentation of its 2022 and 2023 Independent Oil and Gas Industry Reports.

It was reported that the report is being prepared by the NEITI Board and National Stakeholders Working Group (NSWG).

The report was unveiled by Mr Ola Olukoyede, Chairman, Economic and Financial Crimes Commission (EFCC), alongside Sen. George Akume, Secretary to the Government of the Federation and Chairman, NSWG, NEITI and other dignitaries.

The breakdown of the report showed that outstanding liabilities were 6.049 billion dollars and N65.9 billion in unpaid royalties and gas flare penalties, due to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as collectable revenues by Aug. 31, 2024.

It also provided a detailed analysis of the information and data regarding who owes what in outstanding revenues due to the government.

Oil, Gas Industry Owes FG $6bn, N66bn – NEITI Report
(L-R) Mr Ola Olukoyede, Chairman, Economic and Financial Crimes Commission (EFCC), with Sen. George Akume, Secretary to the Government of the Federation and Chairman, NSWG, NEITI and Mr Ikenga Ugochinyere, Chairman. House Committee on Downstream Petroleum

A further breakdown showed outstanding petroleum profit taxes, company income taxes, withholding taxes, and Value Added Tax  (VAT), due to the Federal Inland Revenue Service (FIRS), amounting to 21.926 million dollars and N492.8 million as of June 2024.

On fuel importation, the latest NEITI report disclosed that a total of 23.54 billion litres of Premium Motor Spirit (PMS) were imported into the country in 2022, while 20.28 billion litres were imported in 2023.

This represented a reduction of 3.25 billion litres, or a 14 per cent decline, following the removal of the fuel subsidy.

A detailed 10-year trend analysis (2014–2023) in the NEITI report showed that the highest annual PMS importation into the country, 23.54 billion litres, was recorded in 2022, while the lowest, 16.88 billion litres recorded in 2017.

The NEITI report also disclosed that a total of N15.87 trillion was claimed as under-recovery/price differentials between 2006 and 2023, with the highest amount, N4.714 trillion, recorded in 2022.

On crude production, fiscalised crude production in 2022 stood at 490.945 million barrels, compared to 556.130 million barrels produced in 2021, representing an 11 per cent decline.

However, in 2023, NEITI’s independent report revealed total fiscalised production of 537.571 million barrels, and 46.626 million barrels or a 9.5 per cent increase from total production recorded in 2022.

A 10-year trend (2014–2023) of fiscalised crude oil production in Nigeria showed the highest production volume of 798.542 million barrels was recorded in 2014, while the lowest, 490.945 million barrels, was recorded in 2022.

The NEITI report further provided detailed information and data on crude lifting, disclosing that in 2022, total crude lifting was 482.074 million barrels compared to 551.006 million barrels lifted in 2021.

“In 2023, total crude lifting stood at 534.159 million barrels, representing an 11 per cent increase of 58.08 million barrels,” the report stated.

On oil theft and crude losses, a total of 7.68 million barrels of crude were either stolen or lost in 2023, representing a significant drop of 79 per cent (29.02 million barrels) compared to 36.69 million barrels either stolen or lost in 2022.

NEITI’s independent industry report carefully reviewed all aspects of the regulatory framework for the oil and gas industry.

This included the legal framework, fiscal regime, roles of government entities and reforms, as well as laws, Petroleum Industry Act (PIA 2021) and regulations relating to addressing corruption risks in the oil and gas sector.

The event was supported by the European Union and the Rule of Law and Anti-Corruprion (RoLAC) programme being implemented by the International Institute for Democracy and Electoral Assistance (IIDEA). 

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Economy

EKO BRIDGE REPAIRS: LASG Rolls Out Diversion Plan Beginning Monday

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EKO BRIDGE REPAIRS; LASG Rolls Out Diversion Plan Beginning Monday

The Lagos State Government on Friday announced that traffic will be diverted away from Eko Bridge to facilitate emergency repairs by the Federal Ministry of Works. 

The diversion, according to the Commissioner for Transportation, Mr Oluwaseun Osiyemi, will commence on Monday, 16th September 2024, and will last for 8 weeks.

“The repairs will be carried out in four phases, during which the bridge will be intermittently fully or partially closed, depending on the work schedule”, Osiyemi stated, advising Motorists to use the following alternative routes during the repairs:

*Motorists heading to the Island from Funsho Williams Avenue can make use of the service lane at Alaka to connect to Costain and access Eko Bridge to continue their journeys.

*Alternatively, Motorists heading to the Island can access Costain to connect Eko Bridge to link Apongbon for their destinations.

*Motorists can also connect Apongbon inwards Eko Bridge to link Costain to access Funsho Williams Avenue.

*Motorists can also make use of Costain inwards Alaka/Funsho Williams Avenue or alternately go through Apapa Road from Costain and link Oyingbo to access Adekunle to link Third Mainland Bridge for their desired destinations.

*In the same vein Motorists heading to Surulere are advised to use Costain to link Breweries inward to Abebe Village to connect Eric Moore/Bode Thomas to get to their destinations.

The Commissioner for Transportation, Mr Oluwaseun Osiyemi, assures that Lagos State Traffic Management Authority officers will be deployed to the rehabilitation areas and alternative routes to minimize travel delays and inconvenience.

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