The Secretary General of the Organization Of Petroleum Exporting Countries (OPEC), Mr Mohammed Barkindo, says member countries have lost one trillion dollars worth of oil revenue to the fall in global oil prices between 2014 and 2016.
The OPEC scribe, added that these losses were in terms of deferred and outright cancellations of projects across its entire value chain.
Barkindo, who revealed this during a visit to the Minister of State for Petroleum, Doctor Ibe Kachikwu, commended his measures to solve Nigeria’s longstanding challenges with joint venture cash-call obligations.
The Central Bank of Nigeria (CBN) on Monday announced its first policy actions in the Foreign Exchange (FX) market.
The announcement by the financial regulator comes less than a week after the National Economic Council asked the CBN to revisit its policies on the FX market, as the value of the local currency unit (Naira) dips almost on a daily basis.
The bank stated in statement that the new directive takes immediate effect.
The apex bank, however, stipulated that such retail transactions should be settled as a rate not exceeding 20% above the interbank market rate, which finished on Monday at 305 Naira, 25 Kobo to the U.S. dollar.
In addition to this, the central bank also announced a significant reduction in the tenor of its forward FX sales from the current maximum cycle of 180 days, to not more than 60 days from the date of transaction.
This move, the financial regulator said would further increase the availability of foreign exchange to all end users.
As the bank seeks to increase efficiency of the FX market that has come under intense local and international criticisms, the apex bank said immediate steps were being taken to clear all unfilled orders at the interbank market, remove imposition of allocation/utilisation rules on commercial banks, as well as implement an effective programme to support the interbank market.
The operator of the interbank FX market, the FMDQ OTC Securities Exchange, was therefore advised to activate its FX order-book systems as soon as possible.
The agency was also asked to fast-track the on-boarding of foreign exchange clients on the FX relationship systems, in order to ensure total transparency of the foreign exchange market.
One of the world’s leading credit rating agencies, Moody’s Investor Services, has predicted a 2.5 per cent GDP growth for Nigeria in the new year 2017.
The agency’s Vice President and lead analyst for Nigeria, Lucie Villa, told Sunday Punch, that Nigeria’s economy would bounce back this year, supported by on ongoing recovery in oil production.
The rating agency’s chief said: “the government’s balance sheet is strong, with debt at around 16.6 per cent of Gross Domestic Product in 2016.
“Also, despite its interest burden rising to 19.8 per cent of revenue, Nigeria’s capital markets remain a reliable and captive source of liquidity and funding for the government.”
Moody’s, however, said Nigeria’s weak institutional framework, especially in terms of “the rule of law, government effectiveness and control of corruption,” would have a significant impact on its economic growth and fiscal strength, and thereby constrain the country’s b1 rating.
Nigeria’s leading broadcaster, Channels Television, on Wednesday, closed trading at the Nigerian Stock Exchange.
This was part of a week-long line up of events to celebrate the station’s 21st anniversary.
Channels Television began the daily reportage of the domestic stock market and the entire financial markets in April 1996, just about a year after it started operations.
Over the past two decades, the broadcaster has been an integral part of Nigeria’s market evolution, and development, covering the automation of the stock market, the banking sector, and the ongoing transformation of the entire financial system.
The closing gong was sounded by the Chairman of the Channels Media Group, Mr John Momoh, at 2:30 pm.
Mr John Momoh in his address of welcome, said, “today is a great day for us. It is a very significant day in the sense that it is serving as a pivot for the celebration of our 21st anniversary”.
According to him, “it is the first time on this stage, not the first time on the floor, I have been here 20 years ago, in 1996.
“It is more like déjà vu for me.”
He went on to assure the Nigerian Stock Exchange of continued partnership in order to realise the kind of economy that the nation envisions.
CEO Nigerian Stock Exchange, Oscar Onyema, also congratulated the management and staff of Channels Television for its efforts over the years and for emerging as the best Television Station for the year, for over 10 years.
The National Economic Council (NEC), presided over by Nigeria’s Vice President, Professor Yemi Osinbajo, has endorsed a new funding regime for the oil and gas industry.
This will in turn, eliminate the often arduous and onerous cash call regime which has stalled growth in the industry.
The alternative funding stream had been approved earlier this week at the Federal Executive Council meeting and then presented to NEC, as the body mandated to come up with “measures necessary for the coordination of the economic planning efforts of the various governments of the federation”.
Minister of state for Petroleum, Ibe Kachikwu, who briefed State House Correspondents after the meeting, said:
“the current upstream joint venture arrangement in Nigeria’s oil and gas industry, is unincorporated, meaning that NNPC and the International Oil Companies (IOC’s) partner in each joint venture as unique and separate.”
According to the minister, from January to November 2016, under-funding of the NNPC cash calls is estimated at USD $2.3 billion.
This is in addition to the inherited arrears estimated at USD $6.8 billion for 2015 year ending.
Other highlights of the meeting included how to energize the MSME’s as a major economic growth driver in the country.
On the other hand, council observed that there are over 37 million MSME’s in Nigeria, contributing over 84% of the job opportunities in the country, with Lagos as the highest contributor.
The Central Bank Governor, Mr Godwin Emefiele, then told council that the CBN has a fund in excess of 200 billion Naira to provide affordable loans to MSME’s in the country.
Minister of Finance, Mrs Kemi Adeosun however reported to council that as at November 2016, the balance of excess crude proceeds stands at $2, 455,790,144- which is about $2.4 bln