Thursday, June 16, 2016
Niger Delta Avengers set tough conditions for negotiation with Nigerian government
Niger Delta Avenger militants have set stringent conditions for tripartite negotiations to begin contrary to claims by government that talks are already underway. Nigeria's crude oil exports are nearing 30 years low, as militants attacked more oil installations in the Niger Delta.
President Buhari returns from medical trip today
President Muhammadu Buhari is expected back to Nigeria today from London.
Buhari had two weeks ago embarked on a 10-day trip for medical treatment.
The Presidency had, in a statement, said the President would during the visit to the United Kingdom, see an Ear, Nose and Throat specialist for a persistent ear infection.
The 10-day holiday ended on Wednesday.
An insider hinted Punch that arrangements had been put in place to receive the President, who is due back in the country on Thursday.
“He is expected back on Thursday (today). We are in touch with him. As of today (Wednesday), we have not been told that there is any change in arrangement,” the source said.
Recall that the presidency had on Monday, released photographs of the visit of the Archbishop of Canterbury, Most Revd, Justin Welby, to Buhari in London.
Buhari had two weeks ago embarked on a 10-day trip for medical treatment.
The Presidency had, in a statement, said the President would during the visit to the United Kingdom, see an Ear, Nose and Throat specialist for a persistent ear infection.
The 10-day holiday ended on Wednesday.
An insider hinted Punch that arrangements had been put in place to receive the President, who is due back in the country on Thursday.
“He is expected back on Thursday (today). We are in touch with him. As of today (Wednesday), we have not been told that there is any change in arrangement,” the source said.
Recall that the presidency had on Monday, released photographs of the visit of the Archbishop of Canterbury, Most Revd, Justin Welby, to Buhari in London.
Minister of Petroleum says Job creation will end pipeline vandalism in Nigeria
The Minister of Petroleum Resources, and Group Managing Director of Nigerian National Petroleum Corporation, NNPC, Dr. Ibe Kachikwu, has stated that Nigeria would not totally eradicate pipeline vandalism without creating an enabling environment that will empower militants in the Niger Delta.
Kachikwu, who made this disclosure in Uyon, the Akwa Ibom State capital, noted that with the array of pipeline bombings by the Nigerian Delta Avengers, NDA, it would take nothing less than 15 to 20 years to get infrastructure in the oil sector working.
According to him, “Modular refineries are going to be the answer to our problems in the future. We talk about the militants and their agitations; the reality is that until we begin to put things in place that would have these so called ‘militants’ find opportunities in the sector, the destruction is going to continue.
“I have appealed to those who are breaking oil pipelines for now, the Niger Delta Avengers and everybody else, and as you know, we are engaging in negotiations for us to find peace this week and be able to enter a truce that stops all the destruction.”
Kachikwu noted that Akwa Ibom would have an oil depot, as his ministry developed a document basically on relationship with oil producing states.
He said: “So we can find a direct link between what we do and the oil that we produce. Then the restiveness will go. More than just the depot, I think Akwa Ibom deserves more.”
Kachikwu, who made this disclosure in Uyon, the Akwa Ibom State capital, noted that with the array of pipeline bombings by the Nigerian Delta Avengers, NDA, it would take nothing less than 15 to 20 years to get infrastructure in the oil sector working.
According to him, “Modular refineries are going to be the answer to our problems in the future. We talk about the militants and their agitations; the reality is that until we begin to put things in place that would have these so called ‘militants’ find opportunities in the sector, the destruction is going to continue.
“I have appealed to those who are breaking oil pipelines for now, the Niger Delta Avengers and everybody else, and as you know, we are engaging in negotiations for us to find peace this week and be able to enter a truce that stops all the destruction.”
Kachikwu noted that Akwa Ibom would have an oil depot, as his ministry developed a document basically on relationship with oil producing states.
He said: “So we can find a direct link between what we do and the oil that we produce. Then the restiveness will go. More than just the depot, I think Akwa Ibom deserves more.”
Nigeria finally gives in and will float the troubled Naira
After months of dithering, Nigeria’s Central Bank will allow the national currency’s value be determined by market forces after removing pegs which tied it to a fixed figure. The new policy will take effect from June 20 and will effectively devalue the naira.
The naira was officially pegged at around 199 naira to $1 but as the economy tanked and foreign reserves dried up, the Central Bank allowed few local businesses or individuals access to dollars at that rate. On the more commonly used parallel markets it traded around 350 naira to $1, which many believe is a fairer reflection of its value. It is a departure from the Central Bank’s former position as the sole dealer and means the naira will now be traded through the Central Bank’s selected primary dealers.
The policy change has been largely welcomed. It follows months of fuel shortages, record inflation and investor withdrawal—occasioned by a stubborn refusal to devalue the currency in the face of dipping revenues as a result of the sharp drop in the price of oil, the country’s main resource. Manji Cheto, senior vice president at London-based Teneo Intelligence says the Central Bank’s change of tack “is a clear admission that its earlier policies had failed.”
The Central Bank’s refusal to devalue the naira reflected the position of Nigeria’s president, Muhammadu Buhari. He has said a devaluation was tantamount to ‘killing the naira’. Even though the Central Bank is supposed to operate independently of government the president’s stated position is believed to have influenced the Central Bank. The administration’s refusal to devalue, despite pleas from international and local economists, triggered investor caution in light of the country’s strict monetary policies.
The apex bank says it will periodically intervene in the market, stating conditions under which this could happen in its new guidelines on trading foreign exchange. But Cheto says the possibility of an intervention means the new policy can only be described as a “managed float.”
The Central Bank expects its new policy to close the gap in the current dual exchange rates possibly merging the pegged rate of the naira and its value on the parallel market where it has typically traded around 50% higher for most of the year. “We’re talking about an open, transparent two-way system,” Godwin Emefiele, Central Bank governor said at a press conference. “It’s intended we don’t have speculators and rent-seekers. I don’t expect that any other exchange rate will be recognized.”
The naira was officially pegged at around 199 naira to $1 but as the economy tanked and foreign reserves dried up, the Central Bank allowed few local businesses or individuals access to dollars at that rate. On the more commonly used parallel markets it traded around 350 naira to $1, which many believe is a fairer reflection of its value. It is a departure from the Central Bank’s former position as the sole dealer and means the naira will now be traded through the Central Bank’s selected primary dealers.
The policy change has been largely welcomed. It follows months of fuel shortages, record inflation and investor withdrawal—occasioned by a stubborn refusal to devalue the currency in the face of dipping revenues as a result of the sharp drop in the price of oil, the country’s main resource. Manji Cheto, senior vice president at London-based Teneo Intelligence says the Central Bank’s change of tack “is a clear admission that its earlier policies had failed.”
The Central Bank’s refusal to devalue the naira reflected the position of Nigeria’s president, Muhammadu Buhari. He has said a devaluation was tantamount to ‘killing the naira’. Even though the Central Bank is supposed to operate independently of government the president’s stated position is believed to have influenced the Central Bank. The administration’s refusal to devalue, despite pleas from international and local economists, triggered investor caution in light of the country’s strict monetary policies.
The apex bank says it will periodically intervene in the market, stating conditions under which this could happen in its new guidelines on trading foreign exchange. But Cheto says the possibility of an intervention means the new policy can only be described as a “managed float.”
The Central Bank expects its new policy to close the gap in the current dual exchange rates possibly merging the pegged rate of the naira and its value on the parallel market where it has typically traded around 50% higher for most of the year. “We’re talking about an open, transparent two-way system,” Godwin Emefiele, Central Bank governor said at a press conference. “It’s intended we don’t have speculators and rent-seekers. I don’t expect that any other exchange rate will be recognized.”
Tuesday, June 14, 2016
President Buhari says Nigeria must 'radically' boost exports
Nigeria must “radically” increase its exports to ease shortages of foreign exchange in the oil-dependent West African nation, President Muhammadu Buhari said.
“In a world of lower oil prices and dollar revenues, the only sustainable path is to reduce Nigerians’ over-reliance on imports,” Buhari, 73, who came to power in May 2015, wrote in an opinion piece published in the Wall Street Journal on Monday. “We must rebalance our economy by empowering entrepreneurs and producers, big and small, to create more of what their fellow Nigerians demand.”
The government will help local businesses by encouraging more investment in infrastructure and lowering taxes on small companies, he said. It will also “eliminate bureaucracy to bring the informal economy out of the shadows.” The central bank will introduce a more flexible foreign-exchange policy, Buhari wrote, without giving any details of plans first announced by Governor Godwin Emefiele on May 24.
Africa’s largest economy has been battered by the fall in oil prices since mid-2014 and a drop in production this year to an almost three-decade low as militants bomb crude and gas pipelines. The economy contracted in the first quarter for the first time since 2004 and a recession is imminent, according to the central bank. Inflation accelerated to 15.6 percent in May, the highest rate since early 2010, the national statistics office said on Tuesday.
“In a world of lower oil prices and dollar revenues, the only sustainable path is to reduce Nigerians’ over-reliance on imports,” Buhari, 73, who came to power in May 2015, wrote in an opinion piece published in the Wall Street Journal on Monday. “We must rebalance our economy by empowering entrepreneurs and producers, big and small, to create more of what their fellow Nigerians demand.”
The government will help local businesses by encouraging more investment in infrastructure and lowering taxes on small companies, he said. It will also “eliminate bureaucracy to bring the informal economy out of the shadows.” The central bank will introduce a more flexible foreign-exchange policy, Buhari wrote, without giving any details of plans first announced by Governor Godwin Emefiele on May 24.
Africa’s largest economy has been battered by the fall in oil prices since mid-2014 and a drop in production this year to an almost three-decade low as militants bomb crude and gas pipelines. The economy contracted in the first quarter for the first time since 2004 and a recession is imminent, according to the central bank. Inflation accelerated to 15.6 percent in May, the highest rate since early 2010, the national statistics office said on Tuesday.
Subscribe to:
Posts (Atom)