My Blog

Category: Business

  • FG To Encourage Barge Movement Of Containers To Hinterlands

    FG To Encourage Barge Movement Of Containers To Hinterlands

    The Federal Government has disclosed plans to encourage barge movement of containers from the Onne port and other Eastern ports to the hinterlands.

    Permanent Secretary, Federal Ministry of Transportation/ Marine and Blue Economy, Dr. Magdalene Ajani, disclosed this recently during an assessment visit to the Onne port in Rivers State, which is currently being managed by the West Africa Container Terminal (WACT).

    Speaking during the visit, Ajani pointed out the need for the National Inland Waterways Authority and the Nigerian Ports Authority to collaborate with Boat and Barge Operators Association to synchronize and develop a methodology that will result to the movement of containers in barges from its current location to the hinterlands.

    The Permanent Secretary, who commended the immense efforts of WACT to provide within the port a beautiful work environment that meets international best practice, said “they are doing a great job”.

    According to her, these efforts is however, being hampered with a basic challenge of goods evacuation from the port as a result of some bad segments of the access road leading from Eleme Junction to Onne Port. She however, assured that government will proffer solutions to the situation in no distance time.

    On his part, the Managing Director of WACT, Naved Zafar, said: ” We believe in Nigeria. And this believe has helped us set high ambition. It is equally the same believe that has made us to further expand and modernized the terminal”.

    “The West Africa Container Terminal is equally committed to supporting the Federal Government’s drive to promote non oil export out of the country,” the MD added.

  • National Traders Association Breaks Ground For Milk Production Factory In Abuja

    National Traders Association Breaks Ground For Milk Production Factory In Abuja

    The National Association of Nigerian Traders (NANTS) on Friday commenced the construction of a milk production factory in Giri, Gwagwalada Area Council of the Federal Capital Territory.

    Dr. Alan Sy-Traore, Director of Agriculture in the ECOWAS Commission, which partnered the initiative, commended NANTS for its partnership projects with the commission, emphasizing that the factory aligns with ECOWAS agricultural policies on the livestock value chain.

    Mr. Ibilade Akeem, Deputy Director of Commercial Ruminant and Dairy Production at the Federal Ministry of Agriculture and Food Security, expressed the ministry’s readiness to strengthen its partnership with NANTS in meat and milk production, citing that the milk production factory aligns with the Federal Government’s food security program.

    Dr. Ken Ukaoha, the National President of NANTS, revealed that the factory would be completed within 14 months, enhancing food security and national economic development by producing hygienic milk. Ukaoha stressed the need to address challenges in the dairy sector, including inefficiency, lack of technical expertise, outdated practices, and climate-induced desertification, which has led to conflicts between herders and farmers.

    NANTS, with support from ECOWAS and the Swiss Agency for Development Cooperation, aims to modernize and revitalize the milk sector, showcasing its value chains as opportunities for job creation and sustainable livelihoods. The project will improve production, processing, handling, transportation, and marketing of milk while ensuring compliance with health, safety, and environmental regulations.

    Once completed, the project will also serve as a training ground for students at the Faculty of Agriculture, University of Abuja, and other relevant institutions in the region, contributing to job creation and youth empowerment. The initiative is expected to become a model for milk sector productivity in Nigeria and will encompass food production and training for young people.

    Local authorities and community leaders welcomed the project, recognizing its potential to provide job opportunities and economic benefits to the area.

  • CBN Formally Confirms Emefiele’s Resignation As Cardoso Assumes Duty

    The Acting Governor of Central Bank of Nigeria (CBN), Dr. Olayemi Michael Cardoso, on Friday, formally assumed duty pending his confirmation by the Senate. This is as the Central Bank officially confirmed the resignation of former CBN Governor, Godwin Emefiele.

    President Bola Ahmed Tinubu, recently appointed Cardoso, and other Deputy Governors.   

    This follows the resignation of Mr. Godwin Emefiele as Governor of the Central Bank of Nigeria (CBN).

    A statement by the Director, Corporate Communications, Dr. Isa AbdulMumin which was made available to journalists on Friday in Abuja, added that the Deputy-Governors-Designate have also assumed duties in acting capacities, sequel to the formal resignation of former Deputy Governors, Mr. Folashodun Shonubi, Mrs. Aishah Ahmad, Mr. Edward Lametek Adamu, and Dr. Kingsley Obiora.

    Dr. Cardoso and his colleagues subscribed to the relevant oaths of office at a brief ceremony held at the Bank’s Head Office in Abuja, on Friday and have since settled down to the task of administering monetary and financial sector policies of the Federal Government.

    An Economic and Development Policy Advisor, Financial Sector Leader, former Chairman Citi Nigeria and Commissioner for Economic Planning and Budget in Lagos, Cardoso brings over three decades of managerial experience on board.

    He is an alumnus of Aston University, Birmingham, United Kingdom, where he studied managerial and administrative studies. He also holds a Master’s degree in Public Administration from the Harvard Kennedy School, United States of America.

    It would be recalled that Dr. Cardoso and his colleagues were appointed by President Bola Tinubu to their respective positions at the Bank on September 15, 2023, subject to their confirmation by the Senate.

    Meanwhile, The Central Bank of Nigeria (CBN) has confirmed the resignation of Mr Godwin Emefiele as its governor, three months after being suspended from office by President Bola Tinubu.

  • Petrol Price Increased To N626.70 In August -NBS

    The National Bureau of Statistics (NBS) has said the average retail price of a litre of Petrol increased from N189.46 in August 2022 to N626.70 in August 2023.

    It made the declaration in its Petrol Price Watch for August 2023 released in Abuja on Friday.

    It stated that the Aug. 2023 price of N626.70 represented a 230.78 per cent increase over the price of N189.46 recorded in Aug. 2022.

    “Comparing the average price value with the previous month of July 2023, the average retail price increased by 4.39 per cent from N600.35.

    “On state profiles analysis, Taraba paid the highest average retail price of N680 per litre, followed by Borno and Benue at N657.27 and N649, respectively.

    “Conversely, Adamawa paid the lowest average retail prices of N594.81 per litre, followed by Rivers at N596.80 and Delta at N604.63,’’ it stated.

    Analysis by zone showed that the North-East recorded the highest average retail price in Aug.2023 at N636.93 per litre, while the South-South recorded the lowest at N616.95 per litre.

    The NBS also stated in its Diesel Price Watch Report for August 2023 that the average retail price was N854.32 per litre.

    It explained further that the Aug. 2023 price of N854.32 per litre amounted to a 8.57 per cent increase over the N786.88 per litre paid in August 2022.

    “On a month-on-month basis, the price increased by 7.53 per cent from the N794.48

    per litre recorded in July 2023,’’ it added.

    On state profiles analysis, the report said the highest average price of diesel in Aug. 2023 was recorded in Abia at N970 per litre, followed by Niger at N960.14 per litre and Abuja at N950.22 per litre.

    On the other hand, the lowest price was recorded in Bayelsa at N700 per litre, followed by Katsina State at N771.43 per litre and Kaduna State at N775.42 per litre.

    In addition, the analysis by zone showed that the North-Central had the highest price at N907.86 per litre, while the South-South recorded the lowest price at N820.02 per litre.

  • Exxon Eyes $16bn Profits By 2027

    Exxon is aiming to achieve $16 billion in profits by 2027, primarily driven by its fuels and chemicals sectors. The company anticipates a prolonged plateau in gasoline demand towards the end of the decade.

    Exxon’s profit forecast follows the merger of its refining and chemicals divisions, a strategic move designed to optimize returns and enhance operational efficiency.

    As part of its growth strategy, Exxon recently commenced operations at two new chemicals units within its Baytown, Texas, refinery, with a total investment cost of $2 billion.

    These additions align with Exxon’s long-term expansion plans, aiming to provide essential high-value materials for various everyday products, as highlighted by Karen McKee, president of the company’s Product Solutions division.

    Exxon’s commitment to safety and substantial investments in the U.S. Gulf Coast have contributed to its ability to execute large projects effectively.

    In addition to the recent Baytown expansion, Exxon also augmented its Beaumont, Texas, refinery earlier this year, boosting its daily processing capacity by 250,000 barrels.

    The petrochemical sector is emerging as a prominent avenue for sustained growth within the oil and gas industry. This shift is partly due to the ongoing energy transition, which is expected to reduce the demand for oil as a transport fuel.

    The International Energy Agency predicts that oil demand will peak before 2030, driven by the increasing adoption of electric vehicles (EVs).

    However, OPEC disputes these projections, cautioning that such forecasts could undermine global energy security by deterring investments in oil and gas production.

    Gasoline demand in the United States has already reached its zenith, occurring in 2018 at 9.33 million barrels per day. The most recent data, from June this year, indicates a demand of 9.27 million barrels per day.

    Exxon’s strategic focus on fuels and chemicals, coupled with prudent investments, positions the company to thrive in a changing energy landscape.

  • Again, Equity Market Sheds N35bn

    Transactions on the floor of Nigerian Exchange (NGX) on Thursday closed negative shedding N35 billion. This was due to decline in the share prices of Oando Plc, Nigerian Breweries Flour Mills Nigeria Plc Northern Nigeria Flour Mills among others.

    Market capitalisation of listed equities dropped by 0.09 per cent to N37.365 trillion from N37.400 trillion traded on Wednesday.

    The NGX All Share Index also went down by 64.58 basis points to 68271.14 points from 68335.72 points recorded the previous day.

    Investors traded 1.125 billion shares valued at N5.818 billion in 7949 deals against 566.631 million shares costing N5.386 billion exchanged hands the previous day in 8201 deals.

    A review of the investment during the day showed that JohnHolt led gainers table, increasing by 9.55 per cent to close at N1.72 per unit, Daar Communications and Omatek plc followed with a gain of 9.52 each to close at N0.23 and N0.46 per share respectively. Mutual Benefits gained 9.30 per cent to close at N0.47 per share, SUNU Assurance added 9.09 per cent to close at N0.96 per unit.

    On the contrary, Oando Plc recorded the highest loss in percentage terms, declining by 9.93 per cent to close at N13.15 per share, Lasaco Insurance trailed with a loss of 9.71 per cent to close at N1.86 per unit, Chams Plc fell by 9.59 per cent to close at N1.32 per unit, Northern Nigeria Flour Mills fell by 9.23 per cent to close at N15.25 per share. Tantalizer declined by 8.57 per cent to close at N0.32 per unit.

    Trading in the shares of Universal insurance led market activities, exchanging 669.012 million shares valued at N134.205 million, Oando Plc followed with 100.680 million worth N1.456 billion, Japaul Gold traded 43.738 million shares valued at N43.385 million, AccessCorp traded 40.144 million shares cost N681.949 million, United Bank for Africa sold 32.450 million shares valued at N552.752 million.

  • Nigeria’s Impressive $20.1bn Tops Diaspora Remittances In Sub-Saharan Africa

    Nigeria has emerged as the leader in Diaspora remittances within Sub-Saharan Africa for the year 2022, receiving an impressive $20.1 billion, representing 38 percent of the total remittance flow to the region.

    This figure surpasses that of other countries in the region, including Ghana (11.9 percent), Kenya (8.5 percent), Tanzania (25 percent), Uganda (17.3 percent), and Rwanda (21.2 percent).

    According to the World Bank, Nigeria played a pivotal role in contributing to the total remittance flow of an estimated $52.9 billion into Sub-Saharan Africa in 2022.

    The increase in remittances has provided significant support to several African nations facing various challenges such as food insecurity, supply chain disruptions, drought (particularly in the Horn of Africa), floods (in countries like Nigeria, Chad, Niger, Burkina Faso, Mali, and Cameroon), and debt-servicing difficulties.

    Taking a broader perspective, global remittance flows to low- and middle-income countries (LMICs) reached $647 billion. It is projected to experience a modest 1.4 percent increase, reaching $656 billion in 2023.

    Highlighting the significance of remittances, the World Bank emphasized that over the past year, remittances have become a major source of external finance for LMICs, surpassing foreign direct investment (FDI), official development assistance (ODA), and portfolio investment flows.

    The report also pointed out that in several countries, remittances have overtaken key exports as the primary source of foreign exchange earnings.

    For instance, in Kenya, remittances exceed the earnings from critical sectors such as tourism, tea, coffee, and horticulture. Other nations, including the Gambia, Lesotho, Comoros, and Cabo Verde, are also highly dependent on remittance receipts as a proportion of their GDP.

    However, the report highlighted that Sub-Saharan Africa continues to face the highest remittance costs globally. Sending $200 to African countries during 2022Q4 incurred an average cost of 8.0 percent, up from 7.8 percent in 2021Q4.

    Costs vary widely across the region, ranging from 2.1–4.0 percent in the lowest-cost corridors to a staggering 17–35 percent in the highest-cost corridors.

    Notably, banks impose the highest costs, underscoring the importance of cross-border mobile money transactions. Limited interoperability among telecom operators and money transfer operators in countries like Kenya, Rwanda, Tanzania, and Uganda poses challenges for such transactions.

    Furthermore, the growth of remittance flows into Africa is projected to slow down to 1.3 percent in 2023, compared to 6.1 percent in 2022.

    Factors contributing to this slowdown include risks related to capital outflows, foreign exchange controls, and sanctions. South Africa’s placement on the “gray list” by the Financial Action Task Force (FATF) is also noted. However, remittance flow growth is expected to rebound to 3.7 percent in 2024, according to the World Bank.

  • Nigeria’s Equity Market Rescinds, Sheds N13bn

    Nigeria’s Equity Market Rescinds, Sheds N13bn

    Trading activities on the floor of Nigerian Exchange on Wednesday closed on a negative note, declining by N13 billion, as investors embark on profit taking activities.

    Market capitalisation of listed equities declined by 0.03 per cent to N37.400 trillion from N37.413 trillion reported the previous day.

    The NGX All Share Index also depreciated by 23.50 basis points to 68335.72 points from 68359.22 points traded the previous day.

    A review of the investment showed that Sunu Assurance led gainers table, increasing by 10 percent to N0.88 per share, Berger Paint followed with a gain of 9.91 per cent to close at N12.75 per unit, Oando Plc added 9.77 per cent to close at N14.60 per share, Chams Plc up by 9.77 per cent to close at N1.40 per unit while MRS increased by 9.47 per cent to close at N104.00 per share.

    On the contrary, TranscoHotel topped losers’ chart, dropping by 10 per cent to close at N45.90 per share, IkejaHotel trailed with 9.93 per cent to close at N2.72 per share, Chi Plc fell by 7.41 per cent to close at N1.00, NSLTech dipped by 7.41 per cent to close at N0.25 per unit, while Glaxosmith sheds 7.38 per cent to close at N11.30 per unit.

    Volume of trades declined by 110.105 million, representing 16.27 per cent as investors traded 566.631 million shares valued at N5.386 billion in 8201 deals against 515.280 million shares worth N5.893 billion in 7659 deals.

    Transactions in the shares of Oando Plc led market activities with 109.996 million shares valued at N1.599 billion, Courtvellle Business Solutions followed with account of 66.002 million shares cost N32.569 million, Chams Plc traded 56.388 million shares valued at 56.388 million shares cost N81.804 million Japaul Gold traded 36.630 million shares valued at N35.248 million Access Corp traded 32.530 million shares valued at N563.305 million.

  • NAICOM Takes Compulsory Insurance Campaign To Nasarawa 

    Ahead of its National Insurance conference which comes up in October, the National Insurance Commission (NAICOM) has taken the campaign for compulsory insurance to Nasarawa State.  

    A statement from the Commission said the Commissioner for Insurance, Mr Olorundare Sunday Thomas led a delegation from NAICOM on a courtesy visit to the Executive Governor of Nasarawa State, Engr. Abdullahi A. Sule to intimate him and members of his executive council on the benefits of insurances.

    Some of the compulsory insurances the commission is driving includes Public Buildings and Buildings Under Construction, 3rd Party Motor Insurances amongst others.

    Narrating a personal experience while he was still in the private sector of how the sugar refinery where he worked as the Managing Director was razed by fire but thanks to insurance, a newer and better one was built from the claims paid by the insurance company.

    The Commission has intensified its drive towards Insurance penetration with some novel products built to captivate the general public.

  • TAJBank Wins Global Islamic Banking Awards 2023

    TAJBank Limited, one of Nigeria’s foremost non-interest banking services providers, has won the Global Islamic Finance Award (GIFA) 2023 for its ‘Best Sukuk Deal of the Year 2023.

    According to a statement from TAJBank, it’s Chief Executive Officer (CEO), Mr Hamid Joda, was also decorated with the “Most Promising CEO of the Year 2023” award.

    The awards held in Senegal, was witnessed by the country’s President, Macky Sall, and other global leaders and bankers.

    Over the years, GIFA has recognised over 500 governments, individuals, and institutions, commending their significant contributions to the estimated four trillion dollars Islamic finance industry.

    In his remarks, Joda commended the GIFA leadership for the global recognition.

    “We are grateful to the award organisers for recognition of the bank and my humble self for the GIFA 2023.

    “As we keep saying, these awards and several others TAJBank had received in the past three years will further encourage us to do more in surpassing the expectations of our growing customers,” he said.

    He said that the bank would continue to ensure quality products and services delivery and value-addition to its customers and their businesses.

    The bank’s Executive Director and Co-Founder, Mr. Sherif Idi, also commended the customers for their increasing confidence in TAJBank to offer them superior products and services.

    The GIFA Chairman, Prof. Humayon Dar; commended the winners for their hard work, persistence, and innovative strategies to be able to make giant strides even in the economic climate.

    The listing of TAJBank’s N10 billion Sukuk bond on the Nigerian Exchange Group (NGX) in February enjoyed an unprecedented support from investors, recording of over 30 per oversubscription.