COST HEADLINES WEEKLY REVIEW

14th To 20thDecember 2015


December 15, 2015
SUN
Policies to ease business transactions in Nigeria out soon –Buhari
President Muhammadu Buhari has said his administration will soon introduce more policies to further ease the process of doing business in Nigeria. He disclosed this after a presentation on enhancing Nigeria’s trade and economic competitiveness at the Presidential Villa. According to Buhari, the new policies will focus on increasing efficiency and transparency in government operations, and blockage of leakages from revenue-generating agencies. Buhari said his administration was fully committed to closing all loopholes in revenue generating agencies, increasing efficiency in trade facilitation and ensuring transparency in all government businesses to attract greater foreign direct investments into the country. Read More



December 16, 2015
VANGUARD
Nigeria loses $248m, N3.558bn to waivers in 6 yrs —NPA
THE Nigerian Ports Authority, NPA, said yesterday, that the country lost $248,238,305 and N3.558 billion between 2009 and 2015 to indiscriminate waivers. This is just as the House of Representatives Committee on Ports, Harbours and Waterways has expressed worry over what it described as executive interference by the immediate past administration that incapacitated the House from carrying out its legislative functions. NPA in a document it presented to the House Committee chaired by Rep Patrick Asadu, stated: “As a result of the Federal Government’s approval for 50 per cent rebate to petroleum product vessels berthing at private jetties, NPA has waived $248,238,305.80 and N3,558,148,366.98 as amounts that would have accrued as revenue from 2009 to October 2015.” Read More



December 17, 2015
LEADERSHIP
MDAs Remit N367bn Operating Surplus to FG’s Account
The Fiscal Responsibility Commission (FRC) has disclosed that it has recovered over N367 billions of operating surplus from ministries, departments and agencies (MDAs) of the federal government since 2009 to August 2015.The acting chairman of the FRC, Victor Muruako, stated this on Wednesday during the launch of the Fiscal Responsibility Index (FRI) prepared in collaboration with the Centre for Social Justice (CSJ) and the Open Society Initiative for West Africa (OSIWA).He said, “The need for fiscal responsibility, accountability, and transparency has become more stringent in the light of the present administration’s quest for good governance devoid of financial sleaze and corruption.” Read More



December 17, 2015
GUARDIAN
Senate passes govt’s expenditure plan for three years
PRESIDENT Muhammadu Buhari’s Medium Term and Expenditure Framework (MTEF) for 2016, 2017 and 2018 which he submitted to the National Assembly last week got the approval of the Senate yesterday. Also yesterday, Buhari wrote the National Assembly leadership informing it of his preparedness to present the 2016 budget before the joint session of the National Assembly on Tuesday, December 21. Meanwhile, the Federal Government may have expanded its drive towards ensuring accelerated diversification of the nation’s economy, especially in the face of dwindling oil-based revenue, as the country plays host to a delegation from Corporate Council of Africa (CCA). Read More



December 18, 2015
VANGUARD
Dwindling oil price: Explore alternative sources of revenue, FG tells states
AS the price of oil in the international market continues to dwindle, the Federal Government insisted that state governments must begin to explore alternative sources of generating revenues in their respective states to augment what they were getting from the centre as monthly allocations. Addressing newsmen, yesterday, after the National Economic Council, NEC, meeting in Abuja, where Vice President Yemi Osinbajo represented President Muhammadu Buhari; Minister of Budget and National Planning, Udoma Udo Udoma, said the advice became imperative in the face of the country’s present daunting economic challenges. Udoma said the government, at the meeting, resolved that state governments should not only begin to do away with wastes but also exhibit prudence in the management of their resources. Read More



December 18, 2015
VANGUARD
Nigeria no longer has resources to fund oil industry — FG

The Federal Government stated, yesterday, that the country no longer has the resources to fund the oil and gas industry, and is therefore, considering and developing new models of financing the industry in the days ahead. Speaking at a town hall meeting in Abuja, Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said in January 2016 the final decision on the fate of the country’s refineries would likely be made, while it had also concluded arrangement to adopt a price modulation mechanism that would see it setting a price ceiling of between N87 and N97 per litre for Premium Motor Spirit, PMS, also known as petrol.  Read More



December 18, 2015
SUN
Nigeria’s travel market generates $2bn

Investors in Nigeria’s travel business are having the best of times as the industry is reported to be experiencing a boom with income generation estimated at over $2 billion this year. In the last six years, airlines plying both domestic and international routes have had increased patronage as it is obvious that the disposable incomes of more Nigerians have increased, thus permitting a larger percentage of the population to travel within and outside the country for vacations and shopping than in the preceding years. A recent data by the Nigerian Civil Aviation Authority (NCAA), which regulates the aviation sector, said both domestic and international airlines generated about N10 billion from ticket sales alone in the last six months of the year. Read More



December 19, 2015
THISDAY
Customs Realises N12.2 billion from Nigeria Breweries in 2 years

The Nigerian Customs Service (NCS) yesterday identified the Nigerian Breweries Plc as a major player in the nation’s economy in view of the dwindling revenue profile of the country as a result of the continuous downside in the oil revenue. Speaking during a stakeholders’ dinner organised by the NB Plc in Enugu, the Area Controller, Enugu/Anambra/Ebonyi Area Command of the NCS, Kashim Ajiya said the company's contributions to the economy of the nation especially with reference to the non-oil sector cannot be over-emphasised. He said for instance, between January and November this year, the command had collected a whooping N6.3 billion in revenue with the NB Plc contributing 90 per cent of the figure. Read More



December 20, 2015
THISDAY
Capital Market Suffered 20% Loss in 7 Months, Say Analysts
Amidst the sustained negative performance of equities on the Nigerian Stock Exchange, especially through the second quarter to the end of the year, Capital market analysts have put the total loss incurred at 20 per cent for the period between May 29 and now. In his review of the activities at the stock exchange since May 29, the Executive Director, Corporate Finance at BGL Group, Femi Ademola, told THISDAY that “If we use the Nigerian Stock Exchange (NSE) as a representative of the capital market, we may say the performance is tepid since the market suffered a loss of about 20 per cent since May 29, 2015. However, it is worthy of note that total trading on the market from May 29 to date amounted to about N420 billion, only a little lower than N425 billion recorded in the earlier part of the year. Read More



December 20, 2015
DAILY TIMES
Profit shortfall: Six banks may merge

As some of the Deposit Money Banks (DMBs) in their nine month ended September 2015, recorded struggling profit, indications have emerged that about six banks may likely seek mergers and acquisitions in the year 2016. Due to the shock created in their assets and balance sheet sizes in the face of economy downturn and sharp drop in profits, the Managing Director/CEO, Sterling Bank Plc, Yemi Adeola, disclosed this in Lagos recently at the annual press conference of the Bank, that there are possibilities of reduction in the number of banks in the country comes 2016, because there are moves suggesting that trend. The bank chief said two international banks were discussing with local lenders on possible acquisition, adding that if the opportunities arise for banks to pursue further consolidation, we could see two or three. According to him, I also know that one or two international banks are interested in pursuing acquisitions in Nigeria and they are indeed having discussions already. Read More