• Sen. Stella Odua-Ogiewonyi calls for Inland Container Terminal in Onitsha

    17/Feb/2016 // 374 Viewers


    PARIS, FEBRUARY 17, 2016: (DGW) - Senator Stella Obua representing Anambra North has again called for the establishment of an inland terminal in Onitsha, Anambra State to bring about to facilitate trade and commerce and bring about the development of the Nigerian economy.

    While leading a delegation of the South East Almagamated Market Traders' Association, (SEAWMATA) to  the Senate President Dr Bukola Saraki, Senator Odua reiterated the urgent  need for the establishment of an Inland Container Terminal in order to boost the Nigerian economy.

    This is contained in a statement issued by the press secretary Cynthia Ferdinand to Senator Odua;

    "There is indeed a great need to establish an inland container terminal in Onitsha considering the volume of trade ongoing on a daily basis, this will enhance production, boost the nations economy and revolutionalize the South East.

    "Onitsha, asides being a commercial hub is also strategically located by the Niger Bridge this will ensure industrial layout and advocacy for industrial revolution starting with cottage industries and micro financ to drive them‎.

    "We can create many Innossons from South East and beyond if enabling laws are enacted and if the senate can do this in an accelerated manner." Oduah added.

    Dr. Okey Ezewankwo the association's chairman thanked the leadership of the 8th senate and expressed concern with the dwindling economy which he said has adversely affected business in the south-east.

    His words, "We are following with keen interest the ingenuity which you have brought into the leadership of the 8th Senate which has helped in no small measure to bring stability in the democratic process we are enjoying today.

    "The difficult economic challenges facing the world in general and our nation in particular has direct implications on us as buyers and sellers, this difficulty will send over 70% of the trading population into the labour market if nothing urgent is done to checkmate the situation.

    "These challenges include; Sourcing of Foreign Exchange , SUNCAP, the 10,000 dollar of what one can take accross our boarders, we most passionately appeal to you to restore hope to families through setting fixed exchange rate for the Naira rather than leaving it at the mercy of market forces.''

     
     


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  • Top commercial banks in Nigeria set to go bankrupt as Buhari's policies backfire

    01/Aug/2016 // 999 Viewers

     

    (POST NIGERIA) There are strong indications that some top commercial banks might shutdown, or merge with other banks in the coming weeks.

    According to financial experts, ‎the myriads of challenges facing the nation’s economy, have adversely affected most commercial banks in Nigeria, with some banks likely to experience some challenges that could only be resolved by mergers and acquisitions.

    The Chief Executive Officer, CEO, Financial Derivatives Limited, Bismarck Rewane, has decried that the present economic storm gathering over the country, might lead to a shake-out in the banking sector.‎

    ‎Rewane said, “It will affect their profitability initially, and eventually it is going to affect their liquidity and solvency.

    “Because of the squeeze in profitability, there will be a natural consolidation and a shake-out,‎”‎ He added.

    It could be recalled, that most commercial banks had in the past few months, layed off some of their workforce, in a bid to cope with the negative economic figures being experienced in their respective banks.‎

    ‎With the degenerating state of the economy, even as the manufacturing sector is also considering shutting down, most Nigerians are worried about the safety of their funds in the banks.

    Although, Rewane, expressed hope that the Federal Government’s stimulus package and other measures, aimed at enhancing growth would work and help tackle the economic storm in a long run, an economist, Professor Pat Utomi, said good mergers and acquisitions strategy, could help prevent crisis in the banking sector, and avoid a regulatory risk.

    ‎He said, “There is nothing good or bad about mergers and acquisitions on its own.

    “The question is, whether it will amount to creating value or not. It happened in the United States in the 1980s.

    ‎”A good mergers and acquisitions strategy can prevent regulatory risk. A situation where the central bank will take action on a bank, and there will be panic and everybody begins to run helter-skelter to withdraw their money, is not good for a bank”.

    He added: ‎”If the fundamentals of a bank are beginning to get challenged, it is better a discussion is held with another bank, and it is acquired. What creates a problem is regulatory risk,” Utomi said.

    He added, that what the economy needs to do now, is to begin to produce relevant policies that will enhance productivity.

    Utomi, further noted, that banks could be a good agent in helping to stimulate domestic production.‎

    According to Reuters, since the implementation of the flexible exchange regime last month, the currency has lost double digits against the dollar.‎

    Overall, 42 percent of loans extended by Nigerian banks are in dollars. If the naira falls far enough, it will force some banks to recapitalise, in order to have enough naira to stay within financial stability limits.

    Non-performing loans are expected to jump to 12.5 percent of the total loans of the banks this year, up from the central bank’s target level of 5 percent at the end of last year, as lenders suffer a hangover from an oil sector credit boom that ended abruptly in 2015, Agusto & Co, Nigeria’s main rating agency, said.

    ‎According to a London-based analyst, UBA, Diamond and Guaranty Trust Banks have the highest ratio of dollar loans, at 50 percent apiece.

    Top on the list is GTB, which has $1.6 billion in dollar-denominated debt, followed by First Bank of Nigeria, with $915 million, Reuters data said.

    ‎On the other hand, Zenith Bank’s shares are a third of their pre-financial crisis figures, Access Bank, a quarter; and First Bank, just 10 per cent.

    Financial analysts have argued that if major banks, such as First Bank, Zenith Bank, among several others, are presently feeling the heat, then what is the fate of other banks who have long be struggling to remain afloat.


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  • Breaking News: Nigeria's foreign reserves spirals down to $26.33 billion

    01/Jul/2016 // 595 Viewers

     

    PARIS, JULY 1, 2016:Nigeria's external reserves have dropped abysmally to $26.33 billion as of June 29, 2016, Central Bank of Nigeria official figures show on Thursday.

    DailyGlobeWatch can authoritatively reveal that between May 24 and 27,2016, Nigeria's foreign reserves stood at $26.6 billion
     
    While between May 31 and June 7, the external reserves stood at  $26.3bn  and rose again to the $26.4bn mark on June 8, a level it maintained till June 24. On June 27, it fell back to $26.36bn.

    Within six calendar months alone, over $2 billion has disappeared without any trace from Nigeria's external reserves

    Confirming these figures further, the Minister of Budget and National Planning Senator Udo Udoma said on March 23, that Nigeria's foreign  reserves reduced by a whopping $6.7 billion within a period of 21 calendar months.


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  • External reserves' figures released will make you weep for Nigeria as Buhari's policies backfire

    02/Aug/2016 // 2255 Viewers

     

    The nation’s external reserves fell marginally to $26.20bn on July 28, down from $26.32 on July 22, data from the Central Bank of Nigeria’s website showed on Monday.

    Month-on-month, the reserves fell by 0.4 per cent from the $26.34bn recorded on June 29, the report indicated.

    The foreign exchange reserves stood at $26.42bn on May 28; it was down by 9.2 per cent year-on-year.
     
    During the month of July, the reserves hovered between $26.3 and $26.4bn.

    Similarly, the foreign exchange reserves oscillated between $26.3 and $26.4bn in June.

    The reserves had stood at the $26.4bn between May 24 and 27, after dropping to $26.5bn from $26.6bn the same month.

    Between May 31 and June 7, the external reserves stood at $26.3bn, before rising back to the $26.4bn mark on June 8, a level it maintained up until June 24. On June 27, it fell back to $26.36bn.

    The CBN had last month lifted its 16-month-old currency controls and auctioned about $4bn on the spot and futures market to clear a backlog of dollar demand, to help boost interbank market trading.

    The reserves had dropped by over 10 per cent from last year when they were at $29.7bn.

    The global plunge in oil prices has caused the reserves to be depleting very fast. The development has forced the CBN to introduce foreign exchange controls, which were abandoned last month.

    The CBN’s Monetary Policy Committee announced plans to adopt a flexible exchange rate policy after the external reserves fell to $26.56bn on May 23.

    The external reserves have lost over $2bn dollar this year.

    The nation recorded a balance of payments deficit of 1.4 per cent in its Gross Domestic Product at the end of 2015, owing largely to its first current account deficit (three per cent of the GDP) in over a decade.

    The nation’s external reserves had reduced by $6.7bn within a period of 21 months, the Minister of Budget and National Planning, Senator Udo Udoma, said on March 23.


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  • Economic recession started with Jonathan, not Buhari, Okonjo Iweala begged me not to tell Nigerians - Amaechi

    02/Aug/2016 // 10652 Viewers

     

    PARIS, AUGUST 2, 2016: (DGW) THE  Minister of Transportation, Mr Rotimi Amaechi while defending President Buhari said that Nigeria's economic downturn started with the immediate past President Jonathan and not President Muhammadu Buhari.

    While speaking On 'The Osasu Show', he said that the then Finance Minister begged him not to tell Nigerians that the economy was in recession in his capacity at the then Chairman of Nigeria Governors' Forum.

    His words: “I am one of those who participated in the budget. We looked at what happened in the past and we discovered that actually if recession means three times (three quarters of negative economic growth), we have done more than the three times before we came in,” he said.

    “The difference is that while our government is transparent and open, we are able to admit that, federal government was saying even to me as chairman of governor’s forum, ‘Amaechi, don’t say that again’.

    “If you remember as Governor, I said we’re broke. The minister for finance came to my office in Abuja here and pleaded with me that I shouldn’t say it again.

    “That if I said it, it would affect Nigeria in terms of investment that investors will run away. That I shouldn’t say we are broke. I should say we are cashed strapped. That was what Ngozi Okonjo Iweala told me.”

    “So I knew as chairman of Governor’s forum, that we had gone into recession under Goodluck. I knew as chairman of governor’s forum. And when I open my mouth to say it, that we are broke, she spoke to me not to say it.”


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  • Nigeria’s external reserves now $29.1bn

    02/Jan/2016 // 122 Viewers

     

    Nigeria’s foreign exchange reserves declined by 15.61 per cent year-on-year to $29.101 billion as at December 30 from $34.52 billion a year ago, data from the Central Bank of Nigeria (CBN) revealed on Thursday.

    The drop in the forex reserves value has been largely attributed to the significant reduction in forex inflow into the country occasioned by the sustained low crude oil prices. Oil prices have been hovering around $37 per barrel in the past few weeks. Oil prices tumbled Wednesday after data showed an unexpected increase in US crude supplies.

    Diesel futures dropped to the lowest level since 2004 as U.S. stockpiles of distillates, a category that includes diesel fuel and heating oil, rose more than expected.

    A global glut of crude has weighed on the market for more than a year. Oil prices are on course to fall by more than a third this year as big suppliers such as Saudi Arabia and Russia have continued pumping crude in a bid to defend their market share. Meanwhile, United States (US) crude output has been resilient despite the low prices, and much of the excess has gone into storage.

    Light, sweet crude for February delivery settled down $1.27, or 3.35 per cent, at $36.60 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, declined $1.33, or 3.5 per cent, to $36.46 a barrel on ICE Futures Europe.


     
    As a result of this, the central bank introduced several measures aimed at preserving the foreign exchange reserves and ensuring exchange rate stability last year. For instance, the central bank lasy year harmonised the foreign exchange market by closing the official window of the foreign exchange market in order to create  transparency  and minimise arbitrage  opportunities  in  the  foreign  exchange market. This was then seen by a lot of commentators as a tacit devaluation of the nation’s currency. All demand for forex was then directed to the interbank market.

    Furthermore, to  deepen  the  market  and enhance  the  efficacy  of  the  demand  management  measures,  the central bank  gave  specific  directives  on  the  effective  monitoring and repatriation of both oil and non-oil  export proceeds. In addition, the utilisation  of  export  proceeds  was restricted  to  eligible transactions only to minimise leakages. Also this year, the CBN officially stopped the sale of dollars for a list of 41 items as it also sought to reduce pressure on the naira as well as preserve the external reserves. However, it stressed that importers desirous of importing them could do so using their own funds without any recourse to the Nigerian forex market.

     

     

    ThisDay


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  • Outrage against as NBS figures show damage Buhari did to Nigeria, 4.58 million Nigerians lost jobs in 1 year!

    02/Sep/2016 // 687 Viewers

     

    The Nigerian Bureau of Statistics (NBS) says the total number of Nigerians who became unemployed within the first and second quarter of 2016 now stands at 2.6 million.

    According to the bureau, about 1.46 million Nigerians became unemployed in the third quarter of 2015, while another 518,102 became unemployed in the fourth quarter of 2015.

    This brings the total freshly unemployed persons in the economy to a record high of 4,580,602, since President Muhammadu Buhari took office in May 2015.

    In its second quarter unemployment and underemployment report released on Wednesday, NBS said the country’s unemployment rate grew from 12.1 percent in the first quarter of 2016 to a record high of 13.3 percent in the second.

    “During the reference period, the number of unemployed in the labour force increased by 1,158,700 persons, resulting in an increase in the national unemployment rate to 13.3% in Q2 2016 from 12.1 in Q1 2016, 10.4% in Q4 2015 from 9.9% in Q3 2015 and from 8.2% in Q2 2015,” NBS said.

    “In view of this, there were a total of 26.06 million persons in the Nigerian labour force in Q2 2016, that were either unemployed or underemployed compared to compared to 24.5 million in Q1 2016 and 22.6 million in Q4 2015.”

    The economically active population or working age population (persons within ages 15- 64) increased from 106million in Q1 2016 to 106.69 million in Q2 2016, the report added.

    Underemployment in the economy was also on the rise, with 15.4 million Nigerians said to be underemployed.

    “The number of underemployed in the labour force (those working but doing menial jobs not commensurate with their qualifications or those not engaged in full-time work and merely working for few hours) increased by 392,390 or 2.61%, resulting in an increase in the underemployment rate to 19.3 % (15.4million persons) in Q2 2016 from 19.1% (15,02 million persons) in Q1 2016, 18.7% (14.42 million persons) in Q4 2015, from 17.4% (13.2 million persons) in Q3 2015 and 18.3% (13.5 million persons) in Q2 2015.”

    There were a total of 26.06 million persons in the Nigerian labour force in Q2 2016, that were either unemployed or underemployed compared to compared to 24.5 million in Q1 2016 and 22.6 million in Q4 2015. - The Cable


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  • N'Delta is economic live blood, with bombing of oil facilities there, no one will lend Nigeria $30bn - Sanusi

    03/Dec/2016 // 1770 Viewers

     

    The Emir of Kano, Alhaji Lamido Sanusi, on Friday kicked against the Federal Government’s plans to borrow $29.96 billion for the country.
    Sanusi stated this in Abuja at a policy dialogue organized by the Savannah Centre for Diplomacy, Democracy and Development.

    President Muhammadu Buhari had in October forwarded a request to the National Assembly to approve external borrowing plan to fund projects across the country between 2016 and 2018.

    Sanusi, while acknowledging the fact that the Buhari-led administration inherited a lot of problems from the previous government, lamented that the present government has not taken the necessary steps to drive the economy in the right direction.

    He also stated that the fact that there is no proper system in place to check the exchange rate of the country, makes it problematic for any country to give loans to Nigeria, stating that the system lacks credibility.

    Sanusi said: “I can tell you for free, if the Senate today approves that we can borrow $30 billion, honestly, no one will lend us.

    “It should be approved and I will like to see how you will go to the international market with an economy that has five exchange rates.

    “There is one rate for petroleum marketers, there is interbank rate, there is another for money market operators such as Western Union, Money Gram, there is Bureau De Change rate and there is a special rate you get when you call the Central Bank of Nigeria for a transaction.
    “So who will borrow you when they don’t know your exact reserve and exchange rate?

    “I want to see who will borrow you money when the Niger Delta bombing of oil is there, ‎when the main source of the loan repayment is oil.”
    Sanusi further regretted that Nigeria is the lowest spender per capital on development, citing that Kenya spends more than Nigeria on capital projects.

    Sanusi also regretted that a large chunk of the country’s resources is used to pay salaries, stressing that this trend can no longer continue since the population has continued to grow.

    He, therefore, called on the Federal Government not to see this present economic recession as destructive, but an opportunity to move the country forward.

    He also called for the implementation of the June 2016 forex reforms.
    A former Governor of Anambra State, Peter Obi, who also spoke at the event, called for a drastic reduction of the costs of governance.


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  • Nigerian e-commerce company wins $325 million investments

    03/Mar/2016 // 173 Viewers

     

    LAGOS, Nigeria (AP) — Africa's leading e-commerce platform Jumia says it has won funding of more than $325 million from French, German, South African and U.S. companies eager to invest in one of the continent's fastest-growing online economies.

    Parent company Africa Internet Group said the investment boosts its value to nearly $1.1 billion.

    The investment announced Thursday comes from U.S. investment bankers Goldman Sachs, French insurance multinational AXA, German startup Rocket Internet and a long-time backer, South African telecommunications giant MTN.

    Jumia was founded in Nigeria in 2012 to provide a platform for local African businesses to sell products online. It has expanded to 11 African countries while Africa Internet Group's activities have grown to include online taxis, travel, real estate, and job and food delivery marketplaces.


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  • Finally, Dr Ngozi Okonjo-Iweala breaks silence on Nigeria, economy

    03/Oct/2016 // 3091 Viewers

     


    PARIS, OCTOBER 3, 2016: (DGW) The immediate past Nigeria's Finance Minister, Dr Ngozi Okonjo-Iweala has finally opened up on Nigeria and the ongoing economic recession ravaging the country.

    The world class economist, policy maker on Economic Finance and Development in an interview with Al-Jazeera said in no uncertain terms that she loves Nigeria, the place of her nativity in spite of all odds.

    The former Finance Minister says Nigeria is doubtless the most interesting country in the world and hopefully, the country will find it way out of the ongoing recession.

    Her words:

    "Nigeria is still the most interesting country in the world. It is a vibrant country. I love it so much. I know it is going to come out of this recession one way or another"


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