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Nigeria’s economy grows by 4.03% in Q3, 2021 — NBS

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Electricity Customers Increase to 10.94m in Q3 2022

… As SSG says Kidnapping, banditry on the decline in Katsina State***

Mr Simon Harry, the Statistician-General of the Federation and Head of the National Bureau of Statistics, has declared that the nation’s economy grew by 4.03 per cent in the Third Quarter of 2021.

He made the announcement on Thursday in Abuja at a media conference on the present state of the nation’s Gross Domestic Product (GDP).

Harry explained that the negative GDP figures recorded in 2020 as a result of the COVID-19 pandemic had serious base effects on the GDP figures for quarters two and three of 2021.

“You will recall that the contraction of quarters two and three of 2020 has resulted to positive growth as recorded consecutively for the last three-quarters of quarter four, 2020 with 0.11 per cent, quarter one, 2021 with 0.51 per cent and quarter two, 2021 with 5.01 per cent.

“This base effects continued to quarter three of 2021 recording a growth of 4.03 per cent.”

He stated that the improvement being seen in the output growth over the last four quarters depicts steady progress made in stemming the Covid-19 pandemic and the associated negative impact on livelihood, well-being and the economy.

He said, “Globally, many countries have witnessed an improvement in economic performances compared to 2020 when Covid-19 was endemic.

“Thus, economic recovery is a gradual process that requires consistent collective efforts to improve economic activities across the institutional sectors.

“However, in Nigeria, the prospect of full recovery is glaring provided the current trend of improved economic performance is sustained in the rest of the year and beyond.

“It is important to also mention that annual GDP growth of 2021 stands at -1.92 per cent.”

The overview of the report noted that aggregate GDP stood at N45.113 trillion in nominal term, a performance higher when compared with the third quarter of 2020, which recorded aggregate GDP of N39.089 trillion, indicating a year-on-year nominal growth rate of 15.41 per cent.

It classified the Nigerian economy into the oil and non-oil sectors.

For the oil sector, the report said that the nation, in the third quarter of 2021 recorded an average daily oil production of 1.57 million barrels per day (mbpd).

This, it said, was lower than the daily average production of 1.67mbpd recorded in the same quarter of 2020 by 0.10mbpd and lower than the second quarter 2021 production volume of 1.61mbpd by 0.05mbpd.

It also said that real growth of the oil sector was –10.73 per cent (year-on-year) in quarter three of 2021, indicating an increase by 3.16 per cent relative to the rate recorded in the corresponding quarter of 2020.

It added that the oil sector contributed 7.49 per cent to total real GDP in the quarter, down from figures recorded in the corresponding period of 2020 and up compared to the preceding quarter, where it contributed 8.73 per cent and 7.42 per cent respectively.

For the non-oil sector, the NBS said that it grew by 5.44 per cent in real terms during the reference quarter,  higher by 7.95 per cent compared to the rate recorded in the same quarter of 2020 and 1.30 per cent lower than the second quarter of 2021.

“This sector was driven in third quarter 2021 mainly by trade, Information and Communication (Telecommunication), other drivers include financial and insurance (financial institutions) and manufacturing (food, beverage and tobacco).

It said, “Others are agriculture (crop production) and transportation and storage (road transport), accounting for positive GDP growth.

” In real terms, the non-oil sector contributed 92.51 per cent to the nation’s GDP in third quarter 2021, higher from share recorded in the third quarter of 2020 which was 91.27 per cent and lower than the second quarter of 2021 which recorded 92.58 per cent.”

The newsmen report that GDP helps to determine the structure and dynamics of an economy, which by implication measures the performance of the economy within a given period of time.

In another development, the Katsina State government says its Containment Order of September has drastically reduced banditry and related crimes.

“In July and August, there were 173 reported kidnap incidents affecting 475 persons.

“In September and October, however, only 61 kidnap incidents were recorded involving 201 victims, Alhaji Mustapha Inuwa, Secretary to the State Government, told newsmen on Thursday in Katsina

“There were 97 banditry incidents resulting in 130 deaths and 57 injuries in July and August, while in September and October, there were 56 incidents resulting in 83 deaths and 58 injuries.

“For cattle rustling, statistics showed 141 incidents in July and August when 1,347 cows, 345 sheep, 119 goats and 13 donkeys were stolen.

“In September and October, however, there were 56 rustlings with 676 cows, 109 sheep and 160 goats stolen,’’ he said.

According to him, in an effort to bring the criminals to justice, 480 suspects were arrested between March and September; 42 are under investigation and 216 facing prosecution.

He added that from September to date, on the other hand, 244 suspects were arrested; 33 under investigation, and 80 facing prosecution.

“In spite of the successes recorded, it is worthy to note that since the commencement of the order, the bandits have been unrelenting in devising new strategies aimed at circumventing the impact of the order.

“The strategies range from attacking motorists or motorcyclists to siphon petrol from their fuel tanks to ransacking communities and coercing villagers into sourcing the petrol on their behalf.

“A recent and most worrisome move by the criminals was the acquisition and use of Radio Frequency Walkie-Talkie Transceivers.

“Security Agencies are however on their trail with a view to bringing the menace to an end,’’ Inuwa said.

He said that the government had also noted the engagement of some unscrupulous elements to smuggle petrol to bandits’ enclaves.

He said the menace of informants had equally continued to be a recurring problem causing serious setbacks to the fight against kidnapping and banditry.

“Nevertheless, the efforts of the security agencies are indeed commendable; especially the arrest of such elements, majority of whom are now facing prosecution.

“Members of the public and good citizens of the state are enjoined to give maximum cooperation by reporting activities of informants and people with suspicious character to law enforcement agencies.

“The driving objective is to arrest the emerging situation that is becoming a threat to peace, order and our collective well-being,’’ Inuwa stressed.

“The Security Challenges (Containment) Order, coupled with on-going offensive have significantly impacted on the ability of criminal elements to traverse the forest or communicate with their informants or relatives of kidnap victims.

“The measure has also limited bandits’ access to cattle markets to sell off rustled and stolen animals to secure funds for the purchase of arms and ammunition.

“Thus, we have witnessed a decline in all banditry-related activities,’’ the government scribe said.

He added that the measure was a collective resolve by northwest states to rid the region of their common security challenges.

Inuwa explained that the order restricted communication, food and fuel supplies to suspected bandits and kidnappers.

 

Economy

NGX Weekly: Cadbury Lists 402.1m Additional Shares, Investors Lose N54bn

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NGX Weekly: Cadbury Lists 402.1m Additional Shares, Investors Lose N54bn

 Additional 402,082,657 ordinary shares of 50 Kobo each per share of Cadbury Nigeria Plc (Cadbury) were listed on the Daily Official list of Nigerian Exchange Ltd. (NGX) last week.

A weekly report of the NGX made available to newsmen in Lagos stated that the Cadbury additional shares were listed during the week.

The NGX explained that the additional shares listed on NGX arose from Cadbury’s conversion of N7,036,446,501.26 intercompany loan to equity.

“With this listing of the additional 402,082,657 ordinary shares, the total issued and fully paid up shares of Cadbury has now increased from 1,878,201,962 to 2,280,284,619

ordinary shares of 50 kobo each,” the regulator said.

Also in the course of the week under review, the NGX suspended trading in the shares of Arbico Plc on Friday.

The Exchange said the suspension was necessary to prevent trading in the shares of the company in preparation for the delisting of the securities of the company in line with the approval obtained from NGX.

Meanwhile, the April 2024 Issue of the Federal Government of Nigeria (FGN) Savings Bonds was listed on the NGX on Monday.

In the course of trading for the week, trade turnover settled 15.8 per cent lower than the previous session.

Specifically, investors traded a total of 1.652 billion shares worth N42.677 billion in 38,123 deals this week on the floor of the Exchange, in contrast to 2.187 billion shares valued at N50.667 billion that exchanged hands last week in 45,277 deals.

Consequently, the NGX All-Share Index which opened the week at 98,233.76 lost 0.11 per cent to close at 98,125.73.

The market capitalisation also depreciated by 0.10 per cent or N54 billion to close the week at N55.508 trillion, as against N55.562 trillion posted in the previous week.

Similarly, all other indices finished lower with the exception of NGX Main Board, NGX Lotus II, NGX Industrial Goods and NGX Pension Broad which appreciated by 0.97, 0.58, 0.01 and 0.12 per cent respectively, while the NGX ASeM and NGX Sovereign Bond indices closed flat.

Meanwhile, the Financial Services Industry measured by volume led the activity chart with 979.479

million shares valued at N16.647 billion traded in 20,708 deals.

This contributed 59.30 per cent

and 39.01 per cent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 239.825 million shares worth N2.879 billion in 2,178 deals.

The third place was the Consumer Goods Industry, with a turnover of 148.685 million shares worth N3.525 billion in 4,757 deals.

Trading in the top three equities namely Custodian Investment Plc, Guaranty Trust Holding Company Plc and Access Holdings Plc measured by volume accounted for 500.343 million

shares worth N11.768 billion in 6,551 deals.

This contributed 30.29 per cent and 27.57 per cent to the total equity turnover volume and value respectively.

Also, 28 equities appreciated in price during the week lower than 40 equities in the previous week.

51 equities depreciated in price higher than 37 in the previous week, while 76 equities remained unchanged, lower than 77 recorded in the previous week.

On the losers’ table, PZ Cussons Nigeria led by 22.16 per cent to close at N21.60, NEM Insurance followed by 18.36 per cent to close at N8.45 per cent per share.

Eterna Plc lost 18.32 per cent to close at N11.15, United Bank of Africa(UBA) shed 17.23 per cent to close at N21.85 and The Initiates Plc dropped N15.22 per cent to close at N1.95 per share.

Conversely, International Energy Insurance led the gainers table by 11.49 per cent to close at N1.65, McNichols Plc trailed by 9.89 per cent to close at one Naira per share.

Custodian Investment Plc rose by 9.68 per cent to close at N10.20, Julius Berger advanced by 9.53 per cent to close at N79.30, while Airtel Africa Plc gained 8.97 per cent to close at N2,150 per share.

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Economy

FAAC: FG, States, LGs Share N1.208trn Revenue For April

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FAAC: FG, States, LGs Share N1.208trn Revenue For April

The Federation Account Allocation Committee (FAAC), has shared the sum of N1.208 trillion as revenue for April among the Federal Government, states and Local Government Councils (LGCs).

The revenue was shared on Thursday at the May meeting of FAAC in Abuja.

A communiqué issued by the committee said that the N1.208 trillion total distributable revenue comprised statutory revenue of N284.716 billion, and Value Added Tax (VAT) revenue of N466.457 billion.

It also comprised Electronic Money Transfer Levy (EMTL) revenue of N18.024 billion, and Exchange Difference revenue of N438.884 billion.

The communique said the total revenue of N2.192 billion was available in April.

“Total deduction for cost of collection is N80.517 billion; total transfers, interventions and refunds is N903.479 billion.

The communique said the Gross statutory revenue of N1.233 billion was received for the month under review. This was higher than the sum of N1.017 billion received in March by N216.282 billion,” it said.

It said that the gross revenue available from VAT in April was N500.920 billion, which is lower than the N549.698 billion available in March by N48.778 billion.

The communiqué said that from the N1.208 trillion total distributable revenue, the Federal Government received N390.412 billion, the state governments received N403.403 billion and the LGCs received N293.816 billion.

“A total sum of N120.450 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.

It said that on the N284.716 billion distributable statutory revenue, the Federal Government received N112.148 billion, the state governments received N56.883 billion and the LGCs received N43.855 billion.

It said that the sum of N71.830 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

“The Federal Government received N69.969 billion, the state governments received N233.229 billion and the LGCs received N163.260 billion from the N466.457 billion distributable VAT revenue.

“A total sum of N2.704 billion was received by the Federal Government from the N18.024 billion EMTL, the state governments received N9.012 billion and the LGCs received N6.308 billion.

“The Federal Government received N205.591 billion from the N438.884 billion Exchange Difference revenue; the state governments received N104.279 billion, and the LGCs received N80.394 billion.

“The sum of N48.620 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.

According to the communiqué, Oil and Gas Royalties, Companies Income Tax (CIT), Excise Duty, Petroleum Profit Tax (PPT), EMTL and CET Levies increased significantly.

It, however, said that Import Duty and VAT recorded considerable decreases.

“The balance in the ECA was 473.754 million dollars.

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Extension Of Nigeria’s Continental Shelf As Lesson On Continuity

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Extension Of Nigeria’s Continental Shelf As Lesson On Continuity

On May 14, the High Powered-Presidential Committee on Nigeria’s Extended Continental Shelf Project was in the Presidential Villa, Abuja.

The committee came to brief President Bola Tinubu on recommendations given to Nigeria regarding its submission for an extended continental shelf by the United Nations Commission on the Limits of the Continental Shelf (CLCS).

The briefing was led by veteran diplomat, Amb. Hassan Tukur, the Chairman of the committee.

The update with the president featured technical presentations by Prof. Larry Awosika, a renowned marine scientist and Mr Aliyu Omar, Member/Secretary of the Committee and former staff of the National Boundary Commission (NBC).

Omar also served as the Desk Officer for the project office in New York for several years.

Worthy of note, Nigeria’s request to have it continental shelf extended was approved by the CLCS in August 2023.

The project, which aims to extend Nigeria’s maritime boundaries under the United Nations Convention on the Law of the Sea (UNCLOS), has granted Nigeria sovereignty over an additional 16,300 square kilometres of maritime territory.

This is roughly five times the size of Lagos State.

The CLCS is mandated to, inter alia, consider the data and information submitted and provide recommendations on the outer limits submitted by the coastal state.

Article 76 of UNCLOS (1982) allows a qualifying coastal state to extend its continental shelf up to a maximum of 350M (350 nautical miles) or 150m nautical miles beyond its traditional Exclusive Economic Zone of 200 nautical miles.

Extension Of Nigeria’s Continental Shelf As Lesson On Continuity
President Bola Tinubu receiving Nigeria’s CLCS report from the committee

The continental shelf is the natural submerged prolongation of its land territory.

The journey to extend Nigeria’s continental shelf project began in 2009 with the country’s submission to the CLCS.

The project faced delays due to a lack of funds and administrative challenges; in 2013 the Senate of the Federal Republic in its resolution of Feb. 14, 2013, urged the Federal Government to fund the project and set up an independent body to handle it.

However, it was only in November 2015 that the then President Muhammadu Buhari revitalised it.

Subsequently, he appointed the High-Powered Presidential Committee (HPPC), headed by the former Minister of Justice and Attorney-General of the Federation, Malam Abubakar Malami, to oversee the project.

The HPPC operated as an independent technical body, effectively managing the project by cutting down on government bureaucracy.

Omar had led the Nigerian Technical Team through the question-and-answer sessions with the UN Commission on the Limits of the Continental Shelf (CLCS).

He was also the Member/Secretary of the HPPC with a strong institutional memory of the project, highlighted this during the committee’s briefing to President Tinubu on May 14.

Omar said that when the HPPC briefed Buhari in 2022 on the status of the project, the United Nations Commission on the Limits of the Continental Shelf (CLCS) was still considering Nigeria’s submission and having technical interactions with the HPPC.

”These interactions and consideration have now culminated in the approval for Nigeria to extend its continental shelf beyond 200M (200 nautical miles).

”As it stands now, the area approved for Nigeria is about 16,300 square kilometres, which is about five times the size of Lagos State”, he said.

Nigeria’s extended continental shelf is in an area that is referred to as the ‘Golden Triangle of the Gulf of Guinea’ due to its abundance of natural resources such as hydrocarbons, natural gas, and a variety of solid minerals.

Awosika, a pioneer member and former Chairman of the CLCS, explained that the technical team’s work involved lengthy processes.

He said it also required highly technical steps in the acquisition, processing and analysis of extensive marine scientific data offshore Nigeria’s margin for the submission to the UN CLCS.

He said that the Nigerian team had to defend the submission with the CLCS which involved highly technical question-and-answer sessions and provision of additional data and information.

Receiving the report, Tinubu commended the members of the technical team for working tirelessly.

He applauded their high technical and scientific expertise and solidarity to national cause throughout the eight years of service to the nation before an agreement was finally reached with the UN CLCS in August 2023.

It is instructive to note that Tinubu highlighted the interactions he had with his predecessor, Buhari, on the project; given that it was he, Buhari, who set up the HPPC to oversee the project in 2015.

Tinubu recounted how Buhari briefed him on the importance of the project.

”This is a big congratulations for Nigeria. I commend the team and we must take advantage of this and invite you again to have a repeat of this knowledge exploration on geography, hydrography and marine life.

”Nigeria is grateful for the efforts that you put into gaining additional territory for the country without going to war; some nations went to war; and lost people and economic opportunities.

”We lost nothing but have gained great benefits for Nigeria; we will pursue the best option for the country,” Tinubu said.

Tinubu has also promised to ‘pursue the best option for the country’ on the project, even though the CLCS recommendations fall short of Nigeria’s submitted claim.

Perceptive observers say the achievement is a lesson on the importance of continuity in government projects. Abandoning projects due to changes in administration can lead to wasted resources and lost opportunities.

The extended continental shelf is a significant achievement of Tinubu’s administration and to Nigeria.

According to experts, this is something that has never happened in the nation’s history, and may never happen again.

By learning from the ECS project, Nigeria can improve its approach to governance and project management, ensuring that with perseverance and continuity strategic initiatives are completed despite challenges.

The ECS project, initiated in 2009, faced delays and funding issues but persistence through the efforts of the immediate past administration paid off, and was finally approved by the UN in August 2023, shortly after Tinubu assumed office.

The country has taken note of articles 7 and 8 in Annex II to the Convention on the Law of the Sea concerning recommendations received from the CLCS.

The project also demonstrates the importance of long-term thinking in governance.

Discerning stakeholders hold that while the project’s benefits may not be immediate, it will surely have a significant impact on Nigeria’s economy and maritime boundaries in the future.

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