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Future prosperity: Osinbajo urges African economies to look beyond oil revenue



Jailbreak: VP Osinbajo initiatives save inmates in Lagos – Giwa-Amu

…As Nigeria spends N190b on petrol subsidy in one year***

…  EFCC arraigns oil marketers for alleged diversion, theft of N1.042b***

Vice President Yemi Osinbajo has called on African countries to look diversify their economies and look beyond an oil-based revenues for future prosperity.

Osinbajo stated this in Abuja on Monday while declaring open the Extraordinary Session of the Council of Ministers of African Petroleum Producers Organisation (APPO).

According to the vice president, while oil and gas have continued to remain the mainstay of African economies, there is the need for the re-investment of oil revenues through diversification to prevent economic crises resulting from over-dependence on the product

“The lesson here is that, while oil and gas will continue to be critical to our revenue bases and our national economies, we must also redouble our efforts to achieve the following:

“One, to diversify our economies away from the dangerous overdependence.

“And two, to ensure that we invest as much as is possible of today’s current oil and gas revenues in the infrastructure and human capital that will underpin future economic growth and development.

“We must keep in mind that oil and gas are only guaranteed as today’s resources, and not necessarily tomorrow’s.

“We cannot bet on the fact that even a few decades ago from now these natural resources will be as central to the global economy as they are today.

“All serious economies around the world have realized this, and are making determined plans for a world beyond oil or as they say a zero-oil wealth.

“As African countries we cannot afford to act differently.’’

Osinbajo observed that the oil and gas industry was a capital intensive one, noting that as individual countries, there was lack of the resources required to make the necessary investments to grow the industry.

According to him, this is especially so because these investments are competing with infrastructure and social services, for the limited resources available to governments.

He said that by serving as a platform for increased collaboration and cooperation among member countries, the organisation would go a long way towards helping overcome such financial challenges.

Osinbajo stated that increased synergy would help mobilize the investments needed to deliver the major infrastructure required by the industry, such as trans-border gas and oil pipelines, joint refineries and gas plants.

“Nigeria, as most of you know, is already leading by example, with our work on the West Africa Gas Pipeline Project, and the Nigeria-Niger collaboration on refining.

“In the increasingly interdependent world in which we live, greater levels of regional economic integration are required, allowing the free flow of the dividends of research and technology,’’ he added.

The Vice President also said that APPO needed to seriously look beyond public sector ownership of its activities and tap into private sector competencies and models to a greater degree.

Osinbajo praised the organization for embracing reforms of the sector to confront the challenges facing the organization and the choice of Nigeria’s oil Minister (State), Dr Ibe Kachukwu, to drive the reforms.

He gave the assurance that Kachikwu would not let the organization down having carried out some far reaching reforms in Nigeria’s petroleum industry to the admiration of the administration.

The vice president also harped on the APPO Fund for Technical Cooperation which was undergoing recapitalization to enable it to better fulfill the role for which it was established.

He stated that the financial model of the Fund might need some fine-tuning.

He suggested that the fund could be modeled after similar institutions that succeeded, such as the OPEC Fund to enable non-APPO member countries and private institutions to invest in it.

“The APPO Fund ought to operate as an autonomous entity, independent of the APPO Secretariat, in the same way that the OPEC Fund operates independent of OPEC.

“If institutions similar to APPO and APPO Fund have succeeded and are continuing to succeed in other parts of the world, then we have no reason, and no excuse, to fail as a continent,’’ Osinbajo stressed.

In the meantime, with continued plummeting of crude oil prices, Nigeria now records a monthly average of N15.859 billion as under-recovery on importation of petrol or Premium Motor Spirit (PMS) into the country.

Though the Federal Government claimed it had exited the era of subsidy payment on imported PMS, data from the NNPC showed an under-recovery of N190.314 billion between January 2017 and January 2018.

Under-recovery has been described as the losses that oil companies incur due to the difference between the subsidised price at which oil-marketing companies sell certain products and the price, which they should have received for meeting their cost of production.

Under-recovery or over-recovery in petroleum products import was introduced after the Federal Government scraped subsidy on PMS.

Apart from the huge cost of subsidising the product, the country’s consumption increased from 28 million litres in 2017 to 60 million during the first quarter of 2018, according to latest consumption data from the National Bureau of Statistics.

This has stifled efforts by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, who claimed to have brought down PMS consumption from 50 million litres a day to about 28 million litres per day in 2017.

Kachikwu had said that the current administration was able to block fraud impacted volume of petrol in 2016, which was nearly 40 per cent of the country’s consumption, reducing consumption to 28 million litres.

The Guardian learnt that the same forces the minister claimed have been tackled have returned and are now diverting petrol from Nigeria to neighbouring countries.

This means half of the petrol being imported into the country finds its way into neighbouring states.

Specifically, a breakdown of the monthly under-recovery suffered by NNPC showed that the country incurred under-recovery of N45.782 billion in January 2018 alone.

Further analysis from NNPC’s Financial Report in January 2018, revealed that the country’s under-recovery stood at N37,263,846,591.

This automatically translates to under-recovery of N60 per litre. Facts from the NBS disclosed that Nigeria’s average daily PMS consumption was 60 million during the first quarter of 2018.

Kachikwu had adopted the price modulation policy for products, to ensure the price of petrol reflects the price of crude oil in the international market as close as possible.

Meanwhile, An Ikeja High Court heard yesterday how two oil marketers, David Nwachukwu and Frank Okeke allegedly diverted N1.042billion meant for rentals accrued to a leasing company and  haulage services of three companies for personal use.

Nwachukwu and Okeke are facing a 14 count charges bordering on conspiracy and stealing contrary to section 409 and punishable under 281(1) of the Criminal Code, Law of Lagos State 2011 preferred against them by the Economic and Financial Crimes Commission (EFCC) before Justice Raliat Adebiyi.

They were arraigned before the court alongside their companies,  Haulage Oil and Gas and Franviok Limited.

The defendants were also charged for retention of proceeds of criminal conduct contrary to Section 17 (b) of the EFCC  (establishment) Act, 2004.

Led in evidence by the prosecuting counsel, Rotimi Oyedepo, a witness of the commission, Orji Chukwuma, told the court that a petition,  written by Leasing Company of Nigeria Limited  (now LECON Financial Service Limited) over alleged diversion of funds was assigned to his team to investigate.

He said: “Upon receiving the petition, a lot of investigations were carried out. We investigated staff of Total Plc, LECON, Bank of Industry. We recovered some documents such as internal memo. Some of the people we interrogated made statements. I came across one Bassy Effiong, we interviewed him on the product he sold.”

Additional report from Guardian NG and The Nation


Banking & Finance

Emefiele: CBN disbursed N12.65bn as agriculture intervention since January; N1.09 trillion since 2015



Emefiele: CBN disbursed N12.65bn as agriculture intervention since January; N1.09 trillion since 2015

The Central Bank of Nigeria (CBN), has disbursed N12.65 billion to the Anchor Borrowers Programme (ABP), its flagship agriculture intervention scheme from January till date, despite the soaring cost of food.

The CBN Governor, Mr. Godwin Emefiele said this on Tuesday in Abuja, when he read the communique issued at the end of the 290th meeting of the apex bank’s Monetary Policy Committee (MPC).

According to Emefiele, the total sum that has been disbursed under the ABP since inception in 2015 is N1.09 trillion.

“Between January and February 2023, the bank disbursed N12.65 billion to three agricultural projects under the ABP.

“It brings the cumulative disbursement under the programme to N1.09 trillion to more than 4.6 million smallholder farmers cultivating or rearing 21 agricultural commodities on an approved 6.02 million hectares of farmland,” Emefiele said.

He said that the CBN had also disbursed huge sums as intervention to various other sectors of the economy.

“The CBN also released the sum of N23.70 billion under the N1.0 trillion Real Sector Facility to eight new real sector projects in agriculture, manufacturing, and services.

“Cumulative disbursements under the Real Sector Facility currently stands at N2.43 trillion disbursed to 462 projects across the country, comprising 257 manufacturing, 95 agriculture, 97 services and 13 mining sector projects,” he said.

He said that the apex bank also released N3.01 billion under the Nigerian Electricity Market Stabilisation Facility (NEMSF-2) for capital and operational expenditure of electricity distribution companies

He said that the facility was aimed at improving liquidity status of the Discos and aiding their recovery of legacy debt.

“This brings the cumulative disbursement under the facility to N254.39 billion,” he said.

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Banking & Finance

NGX: Investors Lose N16bn, Ikeja Hotel, Wapic Insurance lead Losers’ Chart 



NGX: Investors Lose N16bn, Ikeja Hotel, Wapic Insurance lead Losers’ Chart 

 Investors at the stock market of the Nigerian Exchange Ltd. (NGX) on Monday lost N16 billion due to sell-offs in medium and large capitalised stocks.

The NGX All Share Index (ASI) decreased by 29.35 basis points or 0.05 percent to close at 54,886.04 basis points from 54,915.39 recorded on Friday.

Similarly, the market capitalisation lost N16 billion to close at N29.899 trillion from N29.915 trillion posted in the previous trading.

Analysing by sectors, the NGX Banking Index added 1.3 percent, and NGX Industrial Goods appreciated by 0.1 percent.

Also, the Insurance Index was down by 0.5 percent and NGX Consumer Goods Index depreciated by 0.4 percent, while the NGX Oil & Gas index closed flat.

Meanwhile, market breadth, which is measured by market sentiment was positive, as 19 stocks gained relative to 14 losers.

Access Holdings recorded the highest price gain of 7.14 percent to close at N9.00, per share.

Cutix followed with a gain of 5.69 percent to close at N2.23, while University Press appreciated by 5.53 percent to close at N2.10, per share.

Custodian Investment went up by 5.17 percent to close at N6.10, while Chams Holding Company appreciated by 4.17 percent to close at 25k,  per share.

Conversely, Ikeja Hotel led the losers’ chart by 9.52 percent to close at N1.14, per share.

Wapic Insurance followed with a decline of 9.52 percent to close at 38k, while Stanbic IBTC Holdings went down by 8.52 to close at N36.50, per share.

Multiverse Mining and Exploration lost 5.80 percent to close at N3.25, while Livestock Feeds shed 5.50 percent to close at N1.03, per share.

The total volume traded went up by 646.50 percent to 1.172 billion units, valued at N2.877 billion, and exchanged in 3,066 deals.

Transactions in the shares of Neimeth Pharmaceutical topped the activity chart with 1.069 billion shares valued at N1.581 billion.

United Bank for Africa (UBA) followed with 15.964 million shares worth N128.784 million, while Access Holdings traded 13.033 million shares valued at N114.365 million.

Transnational Corporation (Transcorp) traded 11.770 million shares valued at N15.257 million, while Zenith Bank transacted 9.861 million shares worth N243.759 million.

Analysts at InvestmentOne Research said, “The equities market recorded a negative performance today due to the slumping prices printed in the Consumer Goods sector.

“Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space.” 

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Banking & Finance

Equities Market Investors lose N67bn; United Capital, Universal Press lead losers’ chart



NGX: Investors Lose N16bn, Ikeja Hotel, Wapic Insurance lead Losers’ Chart 

 Trading activities on the equities market of the Nigerian Exchange Ltd. (NGX) extended losing streak on Wednesday, declining further by 0.42 percent over investors’ profit-taking.

The All-Share Index lost 232.70 points or 0.42 percent to close at 55,490.20 basis points, from 55,722.90 basis points posted on Tuesday.

Consequently, year-to-date returns moderated to 8.27 percent.

In the same vein, the market capitalisation lost N67 billion to close at N30.228 trillion compared to N30.355 trillion recorded on Tuesday.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Zenith Bank, Guaranty Trust Holding Company (GTCO) and Geregu Power.

United Capital, however, led the losers’ chart in percentage terms with 8.75 percent to close at N11.70, per share.

Universal Press followed with 7.50 percent to close at N1.85, per share.

Glaxosmith shed 7.46 percent each to close at N6.20, while Neimeth lost 7.01 percent to close at N1.46, per share.

Conversely, Prestige Assurance led the gainers’ chart in percentage terms, gaining 7.89 percent to close at 41k, per share.

Veritas Kapital followed with an appreciation of five percent to close at 21k, while NGX Group lost by N4.87 percent to close at N28, per share.

Unilever declined by 3.7 percent to close at N14, while Japaul and Ventures rose by 3.57per cent to close at 29k, per share.

GTCO topped the activity chart with an exchange of 33.85 million shares valued at N841.95 million.

Transcorp followed with 21.13 million shares worth N26.62 million, while Zenith Bank traded 18.56 million shares valued at N454.67 million.

Flour Mills sold 18.49 million shares worth N537.14 million, while United Bank for Africa(UBA) transacted 21.97 million shares worth N5.33 million.

In all, the total volume of shares traded dropped by nine percent as investors bought and sold 181.19 million shares worth N3.41 billion in 3,908 deals.

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