18th to 24th January 2016

January 19, 2016
Nigeria earns N3.27trn from oil in 10 months

Nigeria earned N3.27 trillion from the oil and gas sector in 10 months, between January and October 2015, data obtained from the Central Bank of Nigeria, CBN, has revealed. The CBN, in its Economic Report for October 2015, disclosed that oil and gas revenue in the 10-month period accounted for 55.93 per cent of the N5.847 trillion total federally collected revenue in the period under review. In addition to revenue from oil and gas, the country also recorded non-oil revenue of N2.577 trillion, representing 44.1 per cent of federally-collected revenue from January to October 2015. READ MORE

“E-certify” to boost Nigeria’s non-oil export –Bill Harry

Bill Harry, National Vice President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has assured that the newly unveiled ‘e-certify’ of origin of export products would complement government’s quest to boost the nation’s non-oil exports earnings. Harry said that NACCIMA was the only organization saddled with the responsibility for the issuance of Certificate of Origin, a precondition for all export products to be shipped out from Nigeria to foreign countries. He said that the body had begun to sensitize members of the chamber and exporters in Nigeria on the scheme to get their buy in. He said that NACCIMA was migrating the issuance of certificate of origin from manual to electronic platform According to him, before now processing and issuance of certificate of origin may take up to one month or more but with the introduction of the e-platform it could be applied for from anywhere and be completed and collected within few minutes provided that all the information are accurate and true. READ MORE

Oil crash: Nigeria, others to witness $380bn projects delays

OIL’S slump to 13-year lows has led to serious cutbacks in investments by energy companies, as 68 large upstream oil and gas projects worth $380 billion have already been put on hold. A report from an industry consultancy firm, Wood Mackenzie, stated that, “68 large upstream oil and gas projects worth $380 billion have already been put on hold. “Although the report did not specify where these projects are located, but the cost of big projects has not fallen enough to justify massive upfront investment. “The impact of lower oil prices on company plans has been brutal,” said Angus Rodger, an analyst at Wood Mackenzie. Oil has plunged by about 70 percent (around $30 per barrel) from the June 2014 peak of almost $108. READ MORE

January 20, 2016
Non-oil revenues decline by $6.14bn, says CBN

Amidst dwindling oil revenue that brought the economy to its knees, the Central Bank of Nigeria (CBN), yesterday, said revenues from non-oil products equally declined by $6.14 billion (about N1.872 trillion) in 12 months. Speaking during the opening of a one-day CBN/NEXIM Non-oil Simulation Conference in Abuja, CBN Governor, Mr. Godwin Emefiele, attributed the decline to the low level of export loans which he said, caused the decline in non-oil export revenue receipts from $10.53 billion in 2014 to $4.39 billion in 2015. Represented by the Director, Development Finance of the CBN, Dr Mudashiru Olaitan, Emefiele, said: “It has been observed that while credit to non-oil export is declining and currently at an average of 0.6 percent of total domestic loans to the private sector in the past five years, domestic credit to the economy has been on the rise” READ MORE

Nigeria lost $3.3bn in tax holiday to oil majors

Nigeria has lost about $3.3 billion (N656 billion) as a result of an extraordinary ten-year generous tax breaks it granted to three of the world’s biggest oil and gas companies to compensate for their equity investments in the mining and sale of the country’s gas resources, a new report said yesterday. The report which was released by ActionAid, an NGO limited by guarantee and registered in England and Wales, is entitled “Leaking Revenue, How a Big Tax Break to European Gas Companies Has Cost Nigeria billions, “Presented by its country Director, Ms. Ojobo Atuluku, the report explained that Nigeria, Africa’s most populous country, lost the money as a result of the tax breaks it granted to Shell, Total and ENI for their investment in the Nigeria Liquefied Natural Gas (NLNG) Ltd. READ MORE

January 21, 2016
N470m lost daily to gas pipeline attacks –FG

Last weekend’s attack on the Nigeria Gas Company’s pipeline connected to Chevron Nigeria Limited’s facility at Escravos in Delta State is costing the economy a daily loss of N470m and has also resulted in the shutdown of two of the country’s refineries. According to the Federal Ministry of Power, Works and Housing, the vandalism of the gas pipeline would impact negatively on the Olorunsogo National Integrated Power Project plant, which has capacity for 600 megawatts of electricity, and other power plants across the country. Explaining the financial and economic implications of the action on the Nigerian economy, he said, “The sabotaged gas pipeline, which contributes to the Escravos-Lagos Pipeline System, has led to a loss of 160mmsfcd of gas daily. At a cost of $2.50 per thousand scf, this loss means about $400,000 loss to the country on a daily basis (N78.8m) in gas volume. READ MORE

FG targets N394bn from non-oil export in 2016

The Federal Government is targeting to earn an additional two billion dollars (N394 billion) from non-oil exports within the 2016 fiscal period. The Managing Director, Nigerian Export-Import Bank (NEXIM), Mr. Robert Orya, disclosed this on Thursday in Abuja in an interview with the News Agency of Nigeria (NAN) Orya lamented that the country had not been able to achieve the potentials of the sector in view of its abundant resources, adding that there was need for banks to increase lending to non-oil exporters. NAN reports that the Central Bank of Nigeria, in collaboration with NEXIM, has announced a N300 billion intervention fund for non-oil export at nine per cent interest for exporters after non-oil export revenue declined by 6.1 billion dollars between 2014 and 2015. READ MORE

January 22, 2016
Fuel subsidy removal’ll save govt N985bn – Osinbajo

Vice President Yemi Osinbajo has said the Federal Government, which relies on crude oil for about two-thirds of its revenue, is seeing a silver lining to the plunge in crude prices because it will no longer have to subsidize fuel. “Lower oil prices also mean there is some advantage,” Osinbajo said in a panel discussion at the World Economic Forum in Davos, Switzerland, on Thursday. The decline “means that we are not paying any subsidies, which frees up something in the order of about $5bn (about N985bn),” Bloomberg quoted the vice president as saying. READ MORE

Domestic debt servicing gulped N2.95tn in five year

The Federal Government spent a total of N2.95tn to service domestic debts for a period of five years from 2010 to 2014, investigation has shown. Statistics obtained from the Debt Management Office in Abuja on Thursday showed that the actual amount spent on servicing the domestic component of the country’s total debt rose from N334.66bn in 2010 to N846.64bn by the end of December 2014. The debt service obligation of the Federal Government showed an increase of N511.98bn within the period of five years. This means that in the period, the country’s domestic debt service obligation rose by 152.99 per cent. READ MORE

Senators seek aggressive tax collection to fund budget

Some senators, who contributed to the debate on the principles of the 2016 budget in the upper legislative chamber on Thursday, advised the Executive to embark on more aggressive tax collection strategies in order to raise the required revenue to fund the budget. The senators pointed out that most of the areas identified as revenue sources in the budget were no longer feasible as a result of dwindling oil prices in the global market and the fall in the value of the naira against major international currencies. The Chief Whip of the Senate, Prof. Olusola Adeyeye said the government’s efforts at diversifying the economy had yet to take a firm root, adding that the best thing to do now was an aggressive tax regime. READ MORE

January 24, 2016
Nigeria’s non-oil export volume in 2015 was $612m – NEPC

Executive Director, NEPC, Olusegun Awolowo the Nigerian Export Promotion Council (NEPC) says Nigeria’s total non-oil export volume in the first three-quarters of 2015 was 612.73 million dollars. The NEPC Executive Director, Mr Olusegun Awolowo, made the disclosure in an interview with the News Agency of Nigeria (NAN) in Abuja on Sunday. Awolowo said the volume of non-oil exports dropped slightly during the year when compared to the preceding year. READ MORE