28th December 2015 to 3rd January 2016

December 28, 2015
Union Bank faces likely drops in revenue, profit at full year

Union Bank faces the challenges of inability to grow revenue and that could lead to a drop in gross earnings for the bank at full year. Rising interest cost is hurting profit capacity and the bank isn’t likely to achieve up to one-half of its preceding year’s profit based on the third quarter growth rate. Revenue is constrained by non-interest income, which declined by 13% year-on-year at the end of the third quarter while interest income has slowed down due to a continuing drop in the investment portfolio. Read More

December 29, 2015
Reducing overhead costs in 2016

The year started with keen contest among political aspirants who struggled for the votes of the electorate. Due to the political tension in the country, particularly the postponed presidential and governorship elections, the economy slowed down as investors delayed their investment plans. In addition, the declining revenue of the government caused by the decline in oil prices from less than $50 per barrel to $37 towards the end of the year further affected the budgetary plans of the government and worsened the exchange rate of the nation’s currency. For a small business, sustaining an enterprise in this economic recession may be difficult as profit margins are expected to narrow as the cost of doing business rises. As a result, experts have highlighted ways through which small business managers can ensure their businesses survive the trying times. Some of which are Encourage telecommuting, reduce cost of office space and eliminate insignificant subscriptions, memberships … Read More

December 30, 2015
FG unlikely to achieve non-oil revenue target –TUC

The Trade Union Congress of Nigeria, Rivers State Council, has said the Federal Government’s non-oil revenue target in the 2016 budget proposal was ambitious and “most likely unachievable”. The union, therefore, called on the government to provide a believable plan on how it planned to raise the budgeted amount for non-oil revenue; otherwise, it should put in place credible contingency plans to avoid serious budget underperformance. Read More

Nigeria targets N138bn annual income from cashew export

The country is targeting an annual income of over $700m (N138bn) from the export of cashew nuts by the year 2020.The National President, National Cashew Association of Nigeria, Mr Tola Faseru, who disclosed the figure at this year’s annual cashew logistics meeting, noted that the government and all stakeholders in the cashew value chain were making efforts to raise the production from the current 180,000 metric tonnes yearly to 500,000 metric tonnes by 2020. Read More

Nigeria, Others Lag Behind in Global Manufacturing

Following security, power and infrastructural challenges facing Nigeria and other African countries, the continent has continued to lag behind in global manufacturing as it currently accounts for only one per cent of global manufacturing. According to a report by the United Nations Conference on Trade and Development (UNCTAD), manufacturing represents about 10 per cent of African Gross Domestic Products (GDP), compared to 35 per cent for East Asia and the Pacific and 16 per cent for Latin America and the Caribbean. An additional challenge noted by the report is that Africa has some of the highest costs in the world for transport in goods. “In Central Africa, transporting one ton of goods along the route from Douala in Cameroon to N’Djamena in Chad costs $0.11 per kilometre, which is more than twice the cost in Western Europe ($0.05) and more than five times the cost in Pakistan ($0.02)," it stated. Read More

December 31, 2015
Nigeria to Start Local Production Of Pencils In 2 Years – Onu

The minister of science and technology, Dr Ogbonnaya Onu, has said that the country will begin local production of pencils in the next two years. After a facility tour of Projects Development Institute (PRODA), Enugu, Onu said the project would create over 400,000 jobs in line with the vision of the current administration. He said that it is wrong for the country to be importing pencils when it has the capacity to produce them. “It is unthinkable that 55 years after independence, Nigeria is still not producing pencils when we have the human and material resources in the country. PRODA has to produce pencils for Nigeria and they have given me the assurance that this can be done and that with pencil manufacture here, we will be creating 400,000 new jobs”. Read More

January 3, 2016
Oil, Gas JVs gulps 86% of export revenue

The Nigerian National Petroleum Corporation has said 86 per cent of the oil and gas receipt from January to November last year was used to fund joint ventures which it has with other oil firms. The nation’s oil and gas production structure is majorly split between joint ventures with NNPC onshore and in shallow water and production-sharing contracts in deep water offshore. The NNPC, in its latest monthly report released late last week, said the total export receipt for November fell by $43.24m or 9.7 per cent from the $445.79m earned in October. It said, “Total export crude oil and gas receipt for the period of January – November 2015 is $4.54bn. Of the total receipts, the sum of $0.61bn was remitted to Federation Account while the balance of $3.94bn was used to fund the JV cash call for the period. Thus JV funding has gulped more than 86 per cent of the proceeds.” Read More