• NAIRA CRASH: Nigerian currency 'hits six-month high' - BBC reports

    23/Mar/2017 // 1624 Viewers

     

    Nigeria's currency, the naira, reached its highest black market level against the dollar for six months earlier today, the Reuters news agency reports.

    Traders were quoting a price of 430 naira to the dollar.

    This comes as the central bank is trying to close the gap between the official rate, just over 300 naira to the dollar, and the black market rate.

    Reuters says that last month one dollar could buy 520 naira on the black market.

    In November 2014 Nigeria's central bank began to devalue the currency as the official rate was unsustainably high.


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  • Breaking! Investors boycott Nigeria as Naira collapses again on Wednesdayi, new exchange rate will shock you!

    24/Aug/2016 // 1161 Viewers

     

    The naira tumbled to 402 against the dollar at the parallel market on Wednesday, a day after the Central Bank of Nigeria banned nine banks from the foreign exchange market for failing to remit $2.334bn to the Federal Government’s Treasury Single Account domiciled with the Central Bank of Nigeria.

    The local currency had closed at 397/dollar on Tuesday.

    At the interbank market, the naira closed at 315.93/dollar, lower than 305.5 it recorded on Tuesday.

    The slide being witnessed by the naira has caused costs to soar with the inflation rate hitting an 11-year high at 16.5% in June.


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  • Tears as IMF writes off Nigeria's economy, expresses worries over country's sloppy reform programme

    24/Feb/2017 // 1408 Viewers

     

    The International Monetary Fund (IMF), on Thursday, urged Nigeria to step up its economic reform efforts before the opportunity for reforms becomes more limited. 

    Addressing a news conference in Washington DC, yesterday, IMF spokesman, Gerry Rice, noted the country urgently needs to implement a coherent set of policies to ease the constraints posed by the country’s economic recession before opportunities for low hanging fruits evaporate.
     
    Responding to questions on the struggling Africa’s economic giane, the IMF spokesman stated that, “urgency is needed in implementing a coherent and credible package of monetary, fiscal and structural policies as the window for bold reforms is closing with approach of the 2019 general election.”

    Rice also confirmed that the Nigerian authorities have not approached the global lender about a programme but assured the IMF “stands ready to help should the country make a request for financial assistance.”

    Meanwhile, the Minister of Finance, Mrs. Kemi Adeosun, has, said the Federal Government would raise the proportion of government spending devoted to infrastructure to 30 per cent from 10 per cent and would mobilise private capital for additional funding.

    The Federal Government has laid out plans to spend a record N7.29 trillion in 2017, up from N6.06 trillion budgeted for last year, but also needs to find funds to cover shortfall in the budget resulting from lower prices for oil.

    But, Adeosun said she was committed to boosting capital spending across key sectors like power, transport and water, to help drive growth in agriculture, mining and manufacturing.

    “We will now target 30 per cent of government expenditure on infrastructure, up from 10 per cent,” she told an investor conference in Abuja.

    The Minister said the government would tap private capital to complement its own expenditure, adding that fundraising was in progress for housing and road trust funds in partnership with the private sector.

    She also said Nigeria wanted to move towards longer term funding at lower cost as part of government’s plans to borrow up to $10 billion this financial year, with about half coming from foreign sources.

    To help cover the deficit, the country sold $1 billion worth of 15-year eurobonds this month that were almost eight times oversubscribed and the government is now seeking approval from parliament to issue an additional $500 million eurobond.

    Nigeria’s overall debt was 84 per cent domestic and 16 per cent foreign but the government wants to move to 40 per cent foreign debt by the end of 2019 to speed up infrastructure projects and cut borrowing costs.

    On Thursday, the government said it will launch N20 billion “green bond” in April to fund projects to reduce carbon emissions and develop renewable energy.

    It also plans to raise a debut $300 million diaspora bond abroad and sell a maiden sovereign sukuk in the local market.


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  • Surprise Nigeria abandons oil search in the North, returns to N'Delta, hopes to save $31.4 billion on crude oil production

    24/Feb/2017 // 9349 Viewers

     

    Nigeria is to save a whopping $31.4 billion yearly  on reduced cost of crude oil production, which peaked at $70 per barrel in 2014.

    Speaking yesterday at the 14th Annual Aret Adams Memorial Lecture, with the theme“Find More, Produce More”   held in Lagos, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr.Maikanti Baru, said the Corporation’s  Unit Technical Cost (UTC) has significantly dropped from above $70 per barrel in 2014, to about $27 per barrel, as at year end 2016.That gives the country a saving of $43 per barrel daily.

    When $43 is multiplied by two million barrels per day, according to latest production figure reeled out by the Minister of State for Petroleum Resources, Mr. Ibe Kachikwu,Nigeria will be saving about $86 million per day or $31.4 billion yearly.

    Baru, who was represented by the Chief Operating Officer, Gas and Power, Engr. Saidu Mohammed, said NNPC was committed to further driving down the UTC

    He equally disclosed that NNPC has renegotiated its deep offshore rig-rate from a staggering $580,000 to $164,000 per day, saving the country about 71.7 per cent cost of executing similar operations in the past. He added that the Corporation has achieved about 35 per cent downward review of rig rates per day for both swamp and land operations in its portfolios.

    A rig rate is a major cost element incurred by an Exploration and Production (E&P) company in the course of drilling for oil or gas in deep offshore, shallow offshore, swamp, land areas or basins.

    Baru declared that the various reductions serve as an incentive for investors to grow reserves, increase profitability and improve Return On Investment (ROI), adding that they also boost government’s revenue, thus improving its commitment to developmental projects across the country.  The NNPC GMD, solicited the support of all industry stakeholders to achieve more of these lofty aspirations, since according to him, there was an urgent need to link the Industry with other sectors of the Nigerian economy.

    Baru said although the increased oil production involved the cost factor and the commodity price, the Corporation had produced oil within the year with much efficiency.

    “Price may not be readily under our control, but we need to manage cost of production within the Industry. Within the period we took over the reign of leadership in the Corporation, we have been able to drive down cost to a very commendable level.”The GMD explained that to achieve the 40 billion barrels of crude oil reserves and a production of 4Million barrels per day government’s aspiration by 2020, the country needs an incremental of at least 1billion barrels in reserves year-on-year till 2020, and at minimum, half a million barrels in incremental production capacity per day within the same timeframe.

    “Considering our quest for revenue generation as a nation, it is a given that we need to increase our exploration efforts in order to sustain our reserve base and grow production,” he noted.

    He charged industry stakeholders to invest in exploration activities, especially now that crude oil price is low “so that when the tide turns, all we would need to do is to turn on the taps.”

    Baru said NNPC would continue to make investments that are geared towards increasing the national hydrocarbon reserves and daily crude oil & gas production, adding that in this respect, the Corporation was committed to propelling power, industrial and agricultural sectors, through an adequate provision of gas to power and sustainable feedstock to fertilizer and petrochemical industries.

    In his opening remarks, the Chairman of the occasion and former Minister of State for Petroleum, Mr. Odein Ajumogobia, said there was no better time to discuss increased oil production than now.

    Also speaking at the event, Chairman of the Aret Adams Foundation, Mr. Egbert Imomoh, said Nigeria should position itself for the future by finding more oil and producing more of the black gold.

    This year’s Aret Adams Annual Lecture Series is the fourteenth, seeking to immortalize the lofty ideals of Chief Godwin Aret Adams who was former GMD of NNPC, and Adviser on Petroleum  to former Head of State, General Abdulsalami Abubakar between 2008 and 2009. Adams died 15 years ago.


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  • Devaluation: $1 to exchange for N250 and much more on the parallel market

    24/May/2016 // 823 Viewers

    PARIS, MAY 24, 2016: (DGW) THE  devaluation of Nigeria's monetary unit, the NAIRA  will commence today, sources revealed.

    A monetary policy committee meeting is said to be in session in Abuja at the time this report came in.

    The dollar, DailyGlobeWatch understands, will now exchange for N250 which the apex bank is due to announce soon as soon as the meeting is rounded off.

    Before now  the official exchange rate was pegged around N198 – $1 while the parallel market (black market) rate was at N346.


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  • Switzerland set to return $230 million Nigeria's stolen money

    24/May/2016 // 450 Viewers

    Geoffrey Onyema, Nigeria's Foreign Affairs Minister

     

    PARIS, MAY 24, 2016: (DGW) NIGERIA'S Foreign Affairs Minister, Geoffrey Onyeama said all is now set for Switzerland to refund about $230 million to Nigeria.

    While making this disclosure, he said apart from Switzerland effort is still being made to receive stolen  monies from Nigeria from other stashed away in other  foreign lands.

    The foreign trips embarked upon by the president, he defended were for these purposes and are beginning to yield results, he said.

    He highlighted other areas of success like the victory over Boko Haram insurgency and patted President  Buhari on the back for starting on a very good footing. He said the president would have succeeded in repositioning Nigeria in the path of development and economic prosperity when he leaves office hopefully in 2023.


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  • New Cryptocurrency Replacing the U.S. Dollar?

    24/Nov/2015 // 719 Viewers


    America’s elite aren’t just experts at making money – they’re experts at protecting money. When the stock market goes down, they know to move to gold, when gold goes down they know to move to the dollar.

    But what happens when EVERYTHING goes down?

    Well, for the first time in history, there are digital alternatives.  Including a cryptocurrency that isn’t just an investment, but a real way to purchase top quality goods and services.

    Already, multi-millionaire comedian Jerry Seinfeld uses it when he travels. George Clooney plays characters who use it AND uses it himself when he gets off set.

    It’s not just elite people either. This “point-based” cryptocurrency is also a common feature of elite companies. Airlines, High limit credit cards and exclusive resorts all use it.

    But here’s the best part – our analysts have found a way YOU can invest in it. You don’t have to be a millionaire or have any special access.

    In fact, we predict returns of over $56,000 in the next 9 months.

     

    Source: dividends and income daily


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  • Naira appreciates, stabilizes as CBN pumps $246.2 million into foreign exchange market (See exchange rate)

    25/Apr/2017 // 603 Viewers

     

    PARIS, APRIL 25, 2017: (DGW) The Nigerian Naira appreciated and stabilised on Monday as the Central Bank of Nigeria pumped another $246.2 million into the foreign exchange market.

    DailyGlobeWatch recalls that as of Friday last week the US dollar closed at N385 as against N382 on Monday with a marginal drop of N3:00 following the CBN intervention in foreign exchange market.

    Acting Director, Corporate Communications, CBN, Mr Isaac Okoroafor while confirming the development said that the Bank was satisfied with the feedback it received concerning the response of Small and Medium Enterprises (SMEs) to access forex from the new CBN window.

    He said, “SME operators no longer have to patronise or source foreign through unofficial windows and no more pressure on either the BDCs or any other unofficial source with the opening of the special window.”


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  • Naira crash: Foreign airlines now demand dollars for tickets (See new rates on international routes)

    25/Jan/2017 // 1474 Viewers

     

    AS the naira goes crashing against the dollar in forex, foreign airlines have decided that all tickets for foreign flights must be sold in dollars, a situation that has caused unreasonable hikes in air fares. Reports have shown that an economy class on a British Airways flight to London now costs between N600,000 and N700,000 against the former rates of N350,000 and N400,000 a year ago. This represents a huge increase of over 120 per cent.
     
    Investigation has shown that airfares for international routes are now increased by 100 per cent while some foreign airlines like Delta, United and others, do not accept the naira as passengers, both inbound and outbound, are made to pay with a dollar-paying debit card or the ticket will not be processed.
     
    National Daily also gathered from investigation on major Nigerian routes flown by foreign airlines in the country that the cost of return tickets had been increased by between 80 per cent and 120 per cent against the previous fares, depending on the carrier, time of booking and the season.
     
    The routes examined in the course of investigation were Nigeria-North America, Nigeria-South Africa and Nigeria-Europe routes. Also, airfares on the Lagos-London, Abuja-London, Lagos-New York, Lagos-Atlanta, Lagos-Houston, and Lagos-Johannesburg routes were equally examined.
     
    Findings have indicated that an economic ticket on Air France for the Lagos/Abuja-London routes now goes for over N600,000, while Lufthansa charges little above N680,000. These represent an increase of 80 per cent and 90 per cent, respectively, when compared with an average fare of N300,000 on the routes a year ago.
     
    Meanwhile, a business class ticket now goes for as high as N3m as against the N1.5m a year ago on the Lagos-London route.
    On the Lagos-Atlanta and Lagos-Houston routes, Delta Airlines and United Airlines, which used to fly Economy Class passengers for between N270,000 and N330,000 some 12 months ago, now render the same service at an average fare of N600,000, depending on the time of booking. This represents an increase of about 100 per cent.
     
    South Africa Airways and Arik Air, which used to fly the Lagos-Johannesburg routes for between N100,000 and N120,000 for the economy class, now fly the route for between N180,000 and N220,000, depending on the time of booking and the season.
     
    The Lagos-Paris route, which used to go for N180,000 on the average, now goes for around N400,000. This represents an increase of 120 per cent.
     
    Operators link the increment in fares to the scarcity of foreign exchange to attend to the operational needs of the carriers and the erosion in the value of the ticket sales proceeds, which are now stuck in banks due to lack of forex to repatriate the funds.
     
    Late last year, the new administration of President Muhammadu Buhari had unveiled a fiscal policy, through the Central Bank of Nigeria, restricting access to foreign exchange and funds transfer out of the country.
     
    While this has had advantages on some sectors of the economy, foreign airline operators have complained of their inability to repatriate revenue to their operational bases as a result of the new policy.
     
    An official of one the airlines told National Daily that the carrier had close to N90bn as accumulated earnings in banks, which it had been unable to repatriate. He said that the airline industry relied heavily on cash to meet its commitments, adding that it was sad that the government was not seeing things this way.
     
    With huge airline revenue in the vaults of the banks, some of the operators are nursing fears of being exposed to risks should the pressure on the naira lead to the devaluation of the currency, which could erode the value of the funds by about 35 per cent to 45 per cent.
     
    Following the difficulty in repatriating earnings from Nigeria, some of the airlines initially began restricting cheap fares on the Nigerian routes in the last quarter of 2015, leading to an indirect hike in fares.
     
    At the time, the effect was felt more on second tier routes from Lagos-London-Atlanta, Lagos-London-New York, Lagos-London-Miami, Lagos-London-São Paulo, Lagos-London-Houston; or Lagos-Frankfurt-New York, Lagos-Frankfurt-Chicago, Lagos-Frankfurt-Los Angeles, and Lagos-Frankfurt-Shanghai.
     
    Citing Nigeria’s slowing economy amid forex scarcity, some international airlines are now contemplating reducing flights to the country or operating smaller capacity aircraft as a short-term measure.
     
    Virgin Atlantic and Iberia are already on the verge of pulling out of the country, giving reasons that the route is no longer benefitting them commercially.
     
    However, following complaints by the airlines, representatives of the International Air Transport Association, reportedly, pleaded with the CBN Governor, Godwin Emefiele, to intervene in the matter and make dollars available to them. They also involved the Minister of Transport, Chibuike Amaechi, to exert his influence on the issue.
     
    But the move hasn’t yielded any positive results yet. A spokesperson for one of the airlines noted that the difficulty in repatriating revenues was affecting aircraft leases and fuelling, stating that the earnings were partly being used for fuel and renewing aircraft leases.
     
    While the situation persists, the effect on air travellers and other businesses that depend so much on air travel has been overwhelming. A manager with a transport and logistic company, Mr. Emmanuel Iruobe, was quoted recently saying the company had incurred more costs than were provided for in the execution of most contracts this year.
    Iruobe urged the government to look into the situation with a view to resolving the situation in the interest of Nigerians and many other prospective investors eying Nigeria.
     
    The situation also infuriated some stakeholders in the travel industry under the aegis of the National Association of Nigeria Travel Agencies (NANTA). They faulted the astronomical cost of air tickets by the airlines, especially the foreign carriers in their most recent chats with aviation correspondents, vehemently expressing their plight.
     
    The group had petitioned the Federal Government, through the Ministry of Aviation, to caution the foreign airlines over the alleged sharp practices, describing the situation where taxes that go to the airlines are higher than base fares as unacceptable.
     
    Meanwhile, spokesman of the Nigerian Civil Aviation Authority, Mr. Sam Adurogboye, told National Daily that some reports about airfare hikes have no basis to prompt any action against the airlines. He insisted that if the NCAA is privy to any credible information of distrust or actual evidence of hike against any airline, it would take it up without delay, adding that passengers were in position to report to the agency with valid information.
     
    In his words: “The stories have no basis to prompt any action from us; they are only popping up without verifiable facts. I also saw stories like that in some Nigerian dailies but when we confronted the airlines in question, they denied, saying it was a mere blackmail.
     
    But if any passenger comes to us with convincing evidence of payment that they were made to suffer such experience, we will definitely take it up against the airline,” he said.
    On why Virgin and Iberia are prepared to pull out of the country, Adurogboye said their pulling out is not motivated by diplomatic problems but commercial benefit, as the airlines are in business and wouldn’t want to operate at a loss.
     
    “Virgin and Iberia pulled out sometime ago but came back to re-establish operations. The truth is that they can decide to pull out of any route anytime, especially when they are not making significant commercial value from it. So, I think their decision to pull out now largely depends on what favours them; you know they are in business so they can’t be operating at a loss. There is no diplomatic issue involved in their pulling out, it is basically for their benefit.
     
    *This post appeared first on National Daily


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  • International Community in shock as SENATE urged to legalize corruption in Nigeria

    25/Jan/2017 // 3465 Viewers

     

    PARIS, JANUARY 25, 2016: (DGW) THE Nigerian upper legislative chamber has been urged to 'legalize' corrupt practices in Nigeria by ‎Omoyele Omogunwa, a senator from Ondo state.

    He said it while speaking on the floor of the Senate on Wednesday adding that since corruption was pervasive in the country itshould, therefore,  be “legalized”.

    He said there was corruption in the judiciary, and even within the anti-corruption ‎agencies.

    He said if corruption was legalised, Nigerians who stole public funds would use them in building factories and industries in the country, instead of having them stashed away abroad.

    Omogunwa said this while making his contributing to the debate on the 2017 budget.

    He added that the performance of the 2016 budget should be examined first before that of 2017 is determined.

    The official twitter handle of the senate also confirmed Omogunwa’s suuggestion, writing: “Senator Omogunwa notes that Budgets doesn’t have maximal impact due to corruption. He says corruption shld be legalized/liberalized then.”


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