My Blog

Category: Business

  • MPC Postponement, Blessing In Disguise – Uwaleke

    The postponement of the MPC meeting for the second consecutive time could be a blessing in disguise, Professor Uche Uwaleke said.

    The Central Bank of Nigeria had on Monday announced the indefinite postponement of the Monetary Policy Committee meeting.

    The meeting, early scheduled for Monday and Tuesday, November 20 and 21, has again been postponed for the second time since Dr. Olayemi Cardoso became the governor of the apex court in September.

    The CBN’s Director of Corporate Communications, Dr Isa Abdulmumin, who gave this hint in a text message, confirmed that “MPC is not holding”.

    However, in a chat with NIGERIAN ANCHOR, Uwaleke, who is a Professor of the Capital Market at the Nasarawa State University Keffi, noted that had the MPC had held in September, it most likely would have jerked up the MPR thereby further increasing the cost of doing business and reducing access to credit.

    “This would have been the outcome of the meeting against the backdrop of the pressure by the IMF for an MPR hike to reduce money supply which would not have had any significant impact on the rising inflation,” he said.

  • Nigeria’s Currency Circulation Rises By N230bn In October

    Despite reported scarcity of naira in the banking system, data made available by the Central Bank of Nigeria (CBN) showed that currency in circulation rose eight per cent to a new high of N2.99 trillion by the end of October, 2023.

    The value represents a N230 billion increase from the N2.76 trillion recorded in September, 2023, and an increase of N1.6 trillion from N1.39 trillion recorded at the beginning of 2023.

    The apex bank defines the currency in circulation as currency outside the vaults of the Central Bank of Nigeria, meaning, all legal currency notes in the hands of the general public and in the vaults of the Deposit Money Banks (DMBs).

    With this new high of almost N3 trillion, currency in circulation appears to be on the rise to the level it was in October 2022 (N3.29 trillion) before the naira redesign policy of the CBN.

    Analysts say, it is surprising the currency in circulation is increasing, while the deposit money banks say there is scarcity of naira, with many of the banks restricting withdrawals by depositors to a maximum of N 20,000 as was the case with some banks in Lagos last week.

    “Certainly, if the apex bank said money in circulation it has to be naira, not the dollar and pounds sterling that is clearly a scarce commodity. How come, here in Lagos, many of the banks could not give more than N20,000 and their ATM machines perpetually dry last week”, David Agumo argued.

    It is widely believed that it was as a result of the scarcity of the naira that made the CBN announce the continued usage of the old naira notes as legal tenders indefinitely.

    While some economic analysts, believe the development may be attributed to the apex bank’s decision to extend the deadline for the old notes and the assurance of sufficient currency stock may indicate efforts to stabilise the situation and address any cash scarcity concerns, others say that decision made only recently can only affect currency in circulation for November and not October.

  • Average Price Of 5kg Cooking Gas Hits 8.89% -NBS

    Average Price Of 5kg Cooking Gas Hits 8.89% -NBS

    The average retail price for refilling a 5kg Cylinder of Liquefied Petroleum Gas (Cooking Gas) increased by 8.89% on a month-on-month basis from N4,189.96 recorded in September 2023 to N4,562.51 in October 2023.

    In its Liquefied Petroleum Gas (Cooking Gas) Price Watch (October 2023), the bureau noted that on a year-on-year basis, it increased by 1.76% from N4,483.75 in October 2022.

    On state profile analysis, Kano recorded the highest average price for refilling a 5kg cylinder cooking gas with N5,181.43, followed by Adamawa with N5,142.86, and Ogun with N5,093.75.

    On the other hand, Ebonyi recorded the lowest price with N3,971.43, followed by Osun and Edo with N4,000.00 and N4,025.00 respectively.

    “In addition, analysis by zone showed that the North-West recorded the highest average retail price for refilling a 5kg cylinder cooking gas with N4,738.20, followed by the North-Central with N4,662.62, while the South-East recorded the lowest with N4,088.65.

    “Also, the average retail price for refilling a 12.5kg cylinder of cooking gas increased by 14.04% on a month-on-month basis from N9,247.40 in September 2023 to N10,545.87 in October 2023.

    “On a year-on-year basis, this rose by 4.93% from N10,050.53 in October 2022. On state profile analysis, Edo recorded the highest average retail price for the refilling of a 12.5kg cylinder of cooking gas with N12,536.88, followed by Jigawa with N12,050.00 and Delta with N11,987.50. Conversely, the lowest average price was recorded in Zamfara with N9,050.00, followed by Lagos and Oyo with N9,071.05 and N9,407.14 respectively,” the statistics bureau stated.

    Analysis by zone showed that the South-South recorded the highest average retail price for refilling a 12.5kg cylinder cooking gas with N11,480.60, followed by the North-Central with N10,683.97, while the South-East recorded the lowest price with N9,847.42.

  • NIMASA, Navy To Partner On Blue Economy

    The Nigerian Maritime Administration and Safety Agency, NIMASA, and the Nigerian Navy have inaugurated a Committee to establish ways in which the synergy between both organs of government can be channeled into creating a welcoming environment for investment in the Blue Economy.

    Assistant Director, Public Relations, NIMASA Osagie Edward, in a statement said, Flag Officer Commanding (FOC West), Rear Admiral Mustapha Hassan, who inaugurated the 8-Man Committee charged them to come up with policies to create a welcoming maritime environment for investment in the Nigerian Blue Economy.

    Membership of the 8-Man Committee includes on the Navy side, Rear Admiral Mustapha Hassan, FOC, Western Naval Command; Cdre K.O. Oguntuga, Commander NNS Beecroft; Cdre N.S. Kaman, COO Western Naval Command and Capt. A. U. Tijani.

    The Committee members representing NIMASA namely, Director Deep Blue Project, Chief Otonye Obom; Head Shipping Development, Kurahson Inuwa; Head, ISPS, Isa Mudi; and Deputy Director,  Cabotage Services, Aisha Usman Dangote.

    You will recall that the Agency’s Director General, Dr. Bashir Jamoh OFR, during a visit by a delegation from the Nigerian Navy to the Agency’s headquarters in Lagos recently, had announced the constitution of an 8-Man committee, comprising four each from the Navy and NIMASA. 

  • Equity Market Resumes Week Negatively, Sheds N57bn

    Equity Market Resumes Week Negatively, Sheds N57bn

    The domestic equity market on Monday opened the week bearish, declining by N57 billion as the fall in the shares price of RTBriscoe, Nigeria Breweries, Stanbic IBTC, Transacorp and others impacted negatively on the market.

    The market capitalisation of listed equities which went down by 0.15 per cent to N39.050 trillion from N39.107 trillion it closed last week Friday.

    The NGX All Share Index also depreciated by 104.29  basis points to 71008.70 points from 71112.99 points traded on Friday.

    An analysis of the investment showed that Mecure led gainers table in percentage terms, gaining 9.95 per cent to close at N6.30 per share, Multiverse followed with a gain of 9.92 per cent to close at N3.99 per unit, ABC Transport added 9.88 per cent to close at N0.89 per unit, C& I Leasing gained 9.84 per cent to close at N5.47 per unit. Northern Nigeria Flour Mills Nigeria Plc increased by 9.83 per cent to close at N26.25 per unit.

    On the contrary, RTBriscoe recorded the highest loss during the day, dropping by 9.84 per cent to close at N0.55 per share, Prestige insurance trailed with a loss of 9.09 per cent to close at N0.50 per unit, Stanbic IBTC down by 7.08 per cent to close at N65.00, CWG fell by 3.04 percent to N7.70 per share, Caverton Business Solutions declined by 2.78 per cent to close at N1.40 per unit.

    Volume of trades also dropped by  83.134 million, representing 18.82 percent as investors traded 358.445 million shares valued at N4.357 billion in 6551 deals against 441.579 million shares worth N6.032 billion exchanged hands the previous day in 5883 deals.

    The result further showed that transactions in the shares of AccessCorp led market activities during with 27.583 million shares valued at N474.629 million, AIICO Insurance followed with 21.931 million shares cost N16.649 million, Japaul Gold traded 21.240 million shares cost N37.212 million, Veritas Kapital exchanged 18.995 million shares valued at N5.881 million while Transnational Corporation of Nigeria exchanged 17.073 million shares valued at N104.631 million.

  • Energy Transition: NSIA Unveils $500m Renewable Investment Platform

    The Nigeria Sovereign Investment Authority (NSIA) has launched a $500m Renewables Investment Platform for Limitless Energy (RIPLE).

    This initiative is dedicated to the development, investment, and operation of renewable energy projects across the entire value chain.

    NSIA is an independent investment institution, set up by an Act of parliament to manage funds in excess of budgeted hydrocarbon revenues. While RIPLE is another milestone initiative by NSIA in the climate sustainability asset class, having previously launched Carbon Vista with Vitol and the Construction Finance Warehouse Facility.

    With RIPLE, NSIA is positioned to expand energy access, enhance energy efficiency and ensure energy security.

    The launch of RIPLE is accompanied by the execution of a strategic partnership agreement that seeks to further redefine Nigeria’s energy landscape with the International Finance Corporation (IFC).

    The pilot for this initiative is located within the Tokarawa Industrial Hub in Kano State and it involves setting up a generation and distribution system to meet 70MW of unsuppressed energy demands of industrial activities, commercial enterprises, and residential customers in an areacovering about 9,000 connections.

    Commenting on the partnership, the Managing Director/CEO of NSIA Mr. Aminu Umar-Sadiq, said, “The collaboration between NSIA and the IFCis a clear demonstration of NSIA’s dedication to sustainable energy transition in Nigeria. As the custodian of economic resources for current and future generations of Nigerians, tackling climate risks is integral to NSIA’s objectives. We recognize the many opportunities it offers for innovation, growth, and economic transformation.

    “We are excited to partner with the International Finance Corporation to advance the transition to energy efficient solutions in Nigeria, an institution that shares our commitment to sustainable development,our focus is to empower the customers with a resilient and environmentally friendly energy solution that will optimize productivity and reduce carbon footprint ” said Program Manager, RIPLE, Mr. Yusuf Umar,

    Further speaking Regional Manager Africa, IFC Dan Croft, said, “Reliable electricity is crucial for improving quality of life, productivity, and economic growth in Nigeria. IFC is pleased to collaborate with our longstanding partner, NSIA, to develop and implement the first phase of this innovative energy solution which will reduce greenhouse gas emissions and reliance on fossil fuel. The energy solution will also deliver reliable power supply for commercial, residential as well as industrial use.”

  • Agropreneurs, Others Win N10m Grant In Unity Bank’s Corpreneurship Challenge

    Agropreneurs, Others Win N10m Grant In Unity Bank’s Corpreneurship Challenge

    Retail lender, Unity Bank Plc has extended N10 million business grant to 30 members of the National Youth Service Corps, NYSC, who took part in the 10th edition of the Bank’s flagship Entrepreneurship Development Initiative, known as Corpreneurship Challenge.  

    The winners, including upcoming entrepreneurs developing innovative solutions in several business value chains such as Honey production, Rice, and Snail farming, among others, claimed top positions after participating in a business pitch that took place across 10 state NYSC Orientation Camps – Katsina, Kano, Kwara, Imo, Rivers, Delta, Sokoto, Edo, Akwa-Ibom, and Osun recently. 

    At the NYSC Orientation camp at Ikot Itie Udung, Nsit Atai, Akwa Ibom State,  Azegba Chimuanya Perpetual, who pitched business on honey production emerged as the overall winner to clinch the N500,000 grand prize; while Iyorwa Kater Israel, a budding commercial rice farmer won N300,000 grant. Similarly, Egelonu Emmanuel Friday walked away with a N200,000 grant to support his Snail farming business.  

    In the remaining nine states, no fewer than twenty-seven other winners also emerged, after pitching business plans across various economic segments including Fish production, Poultry farming, Fashion, Soap and Cake making, Printing, Piggery, Beverage making, etc. 

    The Unity Bank Corpreneurship Challenge, which has proved its invaluable social benefit as an entrepreneurship development and job creation platform since its inception receives applications from thousands of serving NYSC Corp members. These business plans are then evaluated based on their originality, marketability, future employability potential of the product, and knowledge of the business. 

    Speaking during the grand finale in Akwa Ibom State, Unity Bank’s Head of Retail and SME Banking Group, Dr. Opeyemi Ojesina said the Unity Bank Corpreneurship Challenge has earned its pride of place in Nigeria as one of the country’s foremost business incubation platform and entrepreneurship development. 

    He said, “Unity Bank has sustained this Corpreneurship Challenge for the past five years, and throughout the period we have witnessed the tremendous impact it has had on youth empowerment and job creation in the country.  And I believe that the innovative approach to entrepreneurship which the programme has adopted has enabled us to seamlessly integrate financial support, mentorship, and skill development to foster the growth of aspiring entrepreneurs.” 

    He added, “At its core, the initiative addresses the unique challenges faced by small and medium-sized enterprises, as they recognize the sector as the backbone of economic development. And Unity Bank’s commitment to financial inclusion is exemplified through tailored financial solutions that empower corp members to actualize their business dreams.” 

    Ojesina further explained that “the mentorship provided to participants adds unparalleled value, as it connects corp members with seasoned professionals who provide insights, guidance, and a roadmap for success,” emphasizing how Unity Bank recognizes that true empowerment extends beyond financial assistance to honing entrepreneurial skills”. 

    The Corpreneurship Challenge has earned the Bank national recognition for its impact on youth empowerment and job creation, just as the scheme continues to elicit growing interest among the corps members, attracting over 2000 applicants and participation in every edition.   

    In partnership with the NYSC Skill Acquisition and Entrepreneurship Development, SAED, the initiative prominently features a business pitch presentation that provides the participants with the opportunity to present their business plans and stand a chance to win up to N500,000 cash in the business grant.   

    So far, Unity Bank has invested over N100 million in the initiative which has now produced 148 winners since it was launched.  

  • Ororo Burning Well Harming Marine System, Disrupting Fishing – HOMEF

    Ororo Burning Well Harming Marine System, Disrupting Fishing – HOMEF

    As the Ororo -1 Well at OML95 fire continues to rage for the past three years without attention, the Health of Mother Earth Foundation (HOMEF) has said the inferno is harming marine ecosystems and disrupting fishing and other economic activities of the nearby communities.

    The Foundation in a statement titled, “Ororo-1 Inferno- A Tragic Case of Injustice and Environmental Destruction,” made available to journalists on Saturday by its Communication lead, Kome Odhomor, said the burning well has now become a symbol of ecocide and outright neglect by the Nigerian government.

    According to the statement, several environmentalists have expressed their concerns over decades of destructive extraction of petroleum resources that disrupt ecosystems with decades of exploration and have turned a once-thriving region into one of the most deadly and polluted places on earth.

    “Awoye’s tale is a sad example of a healthy region turned into a sacrifice zone by the pursuit of fossil fuels.

    “A 2021 report by African Oil and Gas Report, stated that “Although the company that engaged the services of the owners of Grace-1 HWU was Guarantee Petroleum, a Nigerian E&P independent, the Nigerian government, having revoked the rights of the company to the field, took ownership of controlling the Well fire.

    “The Department of Petroleum Resources (DPR), in May 2022, told Africa Oil+ Gas it would do all it could to extinguish the fire, including possibly drilling a relief well and engaging Boots & Coots Services, a Halliburton-owned firm of well control specialists, to put out the fire,” the statement reads.

    The Foundation therefore called for quenching of the raging fire at Awoye, saying this tragic incident compounds the climate crisis and harms the communities and ecosystems in multiple ways.

    According to it, “Field data reports show that the reservoir pressure was 8,000 pounds per square inch (psi) and above, and surface pressure was about 4,600 psi as of the incident.  It’s a widely held view by a range of technical specialists in the industry that such a highly pressured well should not have been re-entered with a workover rig with less than adequate blowout preventer (BOP).

    “Stopping the flaming well isn’t rocket science. What is needed is an understanding that the cost of this unattended disaster is far higher than the cost of drilling relief wells and other actions to quench the flames and save the communities,” the Foundation said.

    It also called for the ending of dependence on fossil fuels and leaving the oil on the ground while ramping up investment in renewables.

  • Reducing Supply Will Not Solve Climate Change – ExxonMobil  

    Oil major ExxonMobil Corp has warned that attempting to limit the supply of fossil fuels will impede progress toward achieving net zero emissions as well as potentially perpetuating poverty for millions in the developing world.

    Speaking at the Asia Pacific Economic Cooperation CEO Summit in San Francisco, ExxonMobil CEO Darren Woods, insisted that the solution to climate change has been too focused on reducing supply, noting that it’s “a recipe for human hardship and a poorer world.”

    Woods said that attacking oil and gas companies for their role in climate change will only serve to keep net zero as an “aspiration” rather than a reality

    Woods called for governments to “harness the industry’s capabilities for change” by providing taxpayer support for emissions-reducing technologies like carbon capture before market forces can take over.

    Exxon has ramped up its energy transition efforts over the past two years after losing a bruising proxy battle with activist investor Engine No. 1 at the height of the ESG movement. It plans to spend $17 billion over six years on low-carbon initiatives, and it recently acquired Denbury Inc., the largest carbon dioxide pipeline operator in the US, for about $5 billion. 

    But Exxon is also spending big on oil and gas. It agreed to buy US shale driller Pioneer Natural Resources Co. last month in a deal valued at about $62 billion.

    Woods is adamant that Exxon won’t reduce oil and gas production or invest heavily in renewable energy as his European peers have done. Instead, the Texas oil giant will invest in low-carbon technologies that complement fossil fuels such as carbon capture and hydrogen. 

    “Oil and gas companies reliably provide affordable products essential to modern life,” he said. “Making them into villains is easy. But it does nothing – absolutely nothing – to accomplish the goal of reducing emissions.”

    In unusually personal remarks, Woods talked about his commitment to the environment. 

    “I’m a father and grandfather – who cares about his family, their quality of life, and their futures. Which means I care very much about our environment and the health of our planet,” he said.

    He also attempted to draw a line under the multiple climate lawsuits that have dogged Exxon for much of the last decade. 

    “I’m fully aware that there are many who question ExxonMobil’s commitment because of what was said over 30 years ago – or what they think Exxon knew back then,” he said. 

    “Frankly, I’m more interested in what ExxonMobil knows today. Climate change is real. Human activity plays a major role,” he added.

  • First Bank Rewards Customers With N170m Prizes In Win Big Promo  

    First Bank, Nigeria’s premier financial institution and leading financial inclusion services provider, has launched the Win Big promo to reward and delight its valued customers.

    The four-month promo, which runs till February 2023 will reward several new and existing customers of the Bank with a total cash reward of N170 million.  

    At the end of the four-month promo, 1,240 new and existing customers would have been rewarded with N100,000.00 each as each month will have 310 new and existing customers winning N100,000. Up to 40,000 customers who reactivate their dormant account stand a chance to win free airtime as 10,000 customers will be rewarded with free airtime monthly for reactivating their dormant account.

    6 customers will emerge lucky winners of N1,000,000 each in the grand finale draw. The promo is open to new and existing savings and current account customers.

    To open a FirstBank account, dial USSD code *894*0#and follow the prompt or visit the Bank’s website and click on “Open Account”. You can also visit any FirstBank branch near you to open an account.

    To qualify for the N100,000 monthly draw, customers will have to deposit and maintain a minimum amount of 5,000.00 in their account monthly and transact a minimum of 5 times transactions on any of the Bank’s digital channels: FirstMobile, LIT App, USSD, First Online as well as Debit Card transactions.

    Customers who are eligible to win N1,000,000 must have a deposit of N50,000.00 monthly for four consecutive months or maintain a minimum deposit of N200,000.00 for four months and transact a minimum of 5 times on any of the Bank’s digital banking channels; FirstMobile, LIT App, USSD, First Online as well as Debit Card transactions to qualify for the grand finale draw.

    Customers who reactivate their account(s) are also eligible to win. For reactivating their account,  the first 10,000 customers to deposit N1,000.00 and transact on any of the Bank’s digital channels: FirstMobile, LIT App, USSD, First Online and Debit Card transactions will be rewarded with free airtime. Customers who reactivate their dormant account could also qualify for the monthly draw when they deposit and maintain a minimum amount of N5,000 monthly and transact a minimum of 5 times on any of the Bank’s digital channels. They could also emerge winners of N1,000,000 in the grade finale draw if they meet the criteria.

    To reactivate the account, the customers will have to dial USSD code *894*7# and follow the prompt to reactivate Tier 1 accounts or visit any nearest FirstBank branch for Tier 2 and 3 account reactivation.

    “We are thrilled to launch this promo in appreciation of the patronage, trust and loyalty our customers have shown us over the years. The exciting modalities of the promo reflect our commitment to enhancing the banking experience of our customers across any or all of our digital banking services.

    “This is the season when FirstBank provides opportunities and platforms for the yearly memorable homecoming experience from across the world. The promo is an enabling opportunity for customers, their friends, and families to have exciting, fun-filled, memorable experiences. We encourage our customers to seize this opportunity and participate actively’ she concluded,” said Ms. Folake Ani-Mumuney, Group Head, Marketing & Corporate Communications, FirstBank Group.