Wednesday, May 24, 2017
Video - Nigerian central bank keeps benchmark interest rate at 14%
Nigeria's central bank has kept its benchmark interest rate at 14 percent, after the statistics office said Africa's biggest economy contracted in the first quarter. Governor Godwin Emefiele says the bank's Monetary Policy Committee had voted to retain the headline rate. The statistics office has published data showing that Africa's biggest economy, in its second year of a recession caused by low oil prices, contracted in the first quarter by 0.52 percent.
Nigeria has been in recession for five quarters
Nigeria’s economic worries are not yet over. Statistically, at least.
With negative growth recorded for the fifth consecutive quarter,Nigeria’s economy remains mired in recession, according to newly published data by the National Bureau of Statistics (NBS). But, however slightly, the economy appears to be inching towards growth as even though the economy shrank by 0.52% in the first quarter of 2017, it represents an improvement compared to previous quarters.
Analysts suggest the slight improvement in GDP growth could mean the worst could be over for Nigeria’s economy. “The positive which can be taken from the figure is that the hemorrhaging has stopped, thus clearing the path to growth,” analysts at SBM Intelligence, a Lagos-based firm, commented in a note.
The negative growth rate since the start of last year has been mainly attributed to a drop in Nigeria’s foreign revenues, following the fall in price of oil—Nigeria’s main export. But just as critical, a brief resumption in militancy in the Niger Delta, the country’s oil-rich south last year saw oil production levels tank to 20-year lows, making a bad situation much worse. However, with a peace pact agreed with Niger Delta agitators, NBS data shows an uptick in average oil production levels which have now reached 1.8 million barrels per day (mbpd)—the highest point since the first quarter of 2016—but still some way off desired levels of around 2.2 mbpd.
Getting back to peak production levels is vital, not just for earnings but also to cushion the impact of a possible deal by OPEC to cut production. While OPEC agreed its first deal to cut production last November, Nigeria was exempt having suffered damage to its oil installations during militant attacks earlier in the year. But, with that deal set to be extended, that concession may no longer be available to Nigeria.
Just as importantly, the Nigerian government has also sought to stimulate growth by making it easier to do business in a country where excessive red-tape and corruption has often made things difficult. Last week, Nigeria’s presidency ordered reforms at local ports in a bid to boost exports and diversify its revenue sources and back in February, Nigeria’s Immigration Service relaxed its entry visa rules for tourists and investors.
With negative growth recorded for the fifth consecutive quarter,Nigeria’s economy remains mired in recession, according to newly published data by the National Bureau of Statistics (NBS). But, however slightly, the economy appears to be inching towards growth as even though the economy shrank by 0.52% in the first quarter of 2017, it represents an improvement compared to previous quarters.
Analysts suggest the slight improvement in GDP growth could mean the worst could be over for Nigeria’s economy. “The positive which can be taken from the figure is that the hemorrhaging has stopped, thus clearing the path to growth,” analysts at SBM Intelligence, a Lagos-based firm, commented in a note.
The negative growth rate since the start of last year has been mainly attributed to a drop in Nigeria’s foreign revenues, following the fall in price of oil—Nigeria’s main export. But just as critical, a brief resumption in militancy in the Niger Delta, the country’s oil-rich south last year saw oil production levels tank to 20-year lows, making a bad situation much worse. However, with a peace pact agreed with Niger Delta agitators, NBS data shows an uptick in average oil production levels which have now reached 1.8 million barrels per day (mbpd)—the highest point since the first quarter of 2016—but still some way off desired levels of around 2.2 mbpd.
Getting back to peak production levels is vital, not just for earnings but also to cushion the impact of a possible deal by OPEC to cut production. While OPEC agreed its first deal to cut production last November, Nigeria was exempt having suffered damage to its oil installations during militant attacks earlier in the year. But, with that deal set to be extended, that concession may no longer be available to Nigeria.
Just as importantly, the Nigerian government has also sought to stimulate growth by making it easier to do business in a country where excessive red-tape and corruption has often made things difficult. Last week, Nigeria’s presidency ordered reforms at local ports in a bid to boost exports and diversify its revenue sources and back in February, Nigeria’s Immigration Service relaxed its entry visa rules for tourists and investors.
Tuesday, May 23, 2017
Video - 5 days power outage to occur in Lagos, Nigeria
Electricity supply will be disrupted in many parts of Lagos this week as Eko Electricity Distribution Company announced a five day power outage in the city. EKEDC spokesman, Godwin Idemudia, said in a statement that the outage would affect Ikoyi, Victoria Island and parts of Lagos Island from Wednesday to Sunday. Mr. Idemudia said the outage was to enable maintenance crew from the Transmission Company of Nigeria -TCN- to address technical and maintenance issues at Alagbon transmission station. The EKEDC spokesman said the company regretted any inconveniences caused by the five-day outage. He promised that supply would be restored to the affected areas as soon as the maintenance was successfully completed.
Nigerian Minister of State for Petrol says he will resign if Nigeria continues to import oil by 2019
Nigeria’s Minister of State for Petroleum Resources, Ibe Kachikwu, on Monday vowed to resign if Nigeria continues to import fuel by 2019.
Mr. Kachikwu stated this during an interview on BBC World Service programme, HardTalk, anchored by Stephen Sackur.
In the interview, which lasted 23 minutes, Mr. Kachikwu promised to deliver on the completion of the refineries, noting that he was committed to delivering a future for oil in Nigeria.
On Nigeria’s over-reliance on oil, the minister said the government plans to diversify into agriculture and other sources of revenue.
He said, “Oh, yes, clearly over- reliant , but whether that is dangerous… I look at the positive side of oil also in terms of what it’s done to a country over the years . But when the price slumps, it’s dangerous.
“But we will love to see a lot more diversification, a lot more efforts going into agriculture, emphasis on tourism…”
When asked when the country was going to be self-sufficient in terms of refining petroleum, Mr. Kachikwu declared that 2019 had been set as the target.
“2019 is the target time… I target 2019 . If I don’ t achieve it, I will walk…I put the date and I will achieve it,” the minister said.
He, however, did not clarify if he meant early 2019 or the end of 2019 with the current administration’s tenure set to lapse in May 2019 unless re-elected.
When probed about President Muhammadu Buhari ’s health, the minister noted that he didn’t know the details of the president’s medical treatment.
“He is in London; he’s undergoing hospital treatment. I don’ t know the details of that. I obviously wouldn’t know. But…he’s back in London, he ’s continued some levels of meetings.
“He has a very efficient vice president who is sitting in for him in his absence,” he added.
Commenting further, Mr. Kachikwu explained that he had delivered on all his promises, stating that he made the Nigerian National Petroleum Corporation, NNPC, a profit-making organisation.
“I have delivered on all that I have promised when I came into office,” he said.
“First, I took Nigerian National Petroleum Corporation (NNPC) and made it a profit- making organisation.
“This is the first time such is happening. I reshaped the organisation. I removed cash call deficits of over $ 6 billion and renegotiated it. I will deliver on the refineries and I’m committed to it. I will deliver a future for oil that makes sense for Nigeria.
“I can ’t pretend that we’re going to solve in one day all the problems that happened in Nigeria in the past,” he added.
Mr. Kachikwu stated this during an interview on BBC World Service programme, HardTalk, anchored by Stephen Sackur.
In the interview, which lasted 23 minutes, Mr. Kachikwu promised to deliver on the completion of the refineries, noting that he was committed to delivering a future for oil in Nigeria.
On Nigeria’s over-reliance on oil, the minister said the government plans to diversify into agriculture and other sources of revenue.
He said, “Oh, yes, clearly over- reliant , but whether that is dangerous… I look at the positive side of oil also in terms of what it’s done to a country over the years . But when the price slumps, it’s dangerous.
“But we will love to see a lot more diversification, a lot more efforts going into agriculture, emphasis on tourism…”
When asked when the country was going to be self-sufficient in terms of refining petroleum, Mr. Kachikwu declared that 2019 had been set as the target.
“2019 is the target time… I target 2019 . If I don’ t achieve it, I will walk…I put the date and I will achieve it,” the minister said.
He, however, did not clarify if he meant early 2019 or the end of 2019 with the current administration’s tenure set to lapse in May 2019 unless re-elected.
When probed about President Muhammadu Buhari ’s health, the minister noted that he didn’t know the details of the president’s medical treatment.
“He is in London; he’s undergoing hospital treatment. I don’ t know the details of that. I obviously wouldn’t know. But…he’s back in London, he ’s continued some levels of meetings.
“He has a very efficient vice president who is sitting in for him in his absence,” he added.
Commenting further, Mr. Kachikwu explained that he had delivered on all his promises, stating that he made the Nigerian National Petroleum Corporation, NNPC, a profit-making organisation.
“I have delivered on all that I have promised when I came into office,” he said.
“First, I took Nigerian National Petroleum Corporation (NNPC) and made it a profit- making organisation.
“This is the first time such is happening. I reshaped the organisation. I removed cash call deficits of over $ 6 billion and renegotiated it. I will deliver on the refineries and I’m committed to it. I will deliver a future for oil that makes sense for Nigeria.
“I can ’t pretend that we’re going to solve in one day all the problems that happened in Nigeria in the past,” he added.
Monday, May 22, 2017
Video - Nigerian football stakeholders concerned by decline in U20 national team's performance
The Under-20 FIFA World cup kicked-off in South Korea on Saturday, with African teams registering mixed results. However, in absent was one of Africa's most successful football nations, Nigeria. The West African Nation is seven-times champion of the Africa Under-20 Championships and their declining performance is becoming a cause for concern back home as CGTN's Kelechi Emekalam now reports.
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