Top News Update 22/06/2017
1. Nigeria to issue more bonds
2. World Bank Approves $961m To Support FG’s ERGP
3. Budget 2017: Panic as oil price drops to $43.90 per barrel
4. Nigeria’s oil exports to exceed 2 million bpd
5. Etisalat Has Paid Over 50% of Original Loan
6. FG begins move to reduce price of rice
7. Global stock markets slide on oil price slump
8. FG, Germany sign €10m polio aid agreement
Nigeria To Issue More Bonds
As Nigeria continues to savour the success of its maiden Diaspora bond and prepares for the issuance of its first-ever sovereign Sukuk, the Federal Government yesterday affirmed that it will explore issuance of more innovative bonds to provide opportunities for all segments of populace to participate in the national economic development. Director-General, Debt Management Office (DMO), Dr. Abraham Nwankwo yesterday at the Nigerian Stock Exchange (NSE) said the government would continue to open up new windows of opportunities for all segments of the people through its bond issues. “We are going to continue opening new windows so that we give options to the government, private sector and investors, and such that we make sure that all segments of economy have opportunities to participate in the capital market for the growth and development of the economy,” Nwankwo said.
World Bank Approves $961m To Support FG’s ERGP
The World Bank has approved two Program-for-Results operations totalling $961 million to support the Nigerian federal and state authorities in their effort to foster inclusion and revive growth, in alignment with the Economic Recovery and Growth Plan (ERGP) of the Federal Government of Nigeria for 2017–2020. The Better Education Service Delivery for All (BESDA) Program-for-Results is a $611 million credit aiming to bring out-of-school children into the classroom, improve literacy, and strengthen accountability for results in basic education. In 2013, 13.2 million school-age children were out of school, the overwhelming majority of which is in the North where out-of-school children rates are also higher among girls, in rural areas and form poor families.
Budget 2017: Panic As Oil Price Drops To $43.90 Per Barrel
For the first time, the price of crude oil has dropped from $46 to $43.90 per barrel in the international market, showing $0.60 cents below Nigeria’s $44.50 per reference price for the 2017 budget. A survey of the global oil market, showed that the there was a general drop in the prices of many range of crude oil because of excess supply yesterday. For instance, the price of the Organisation of Petroleum Exporting Countries, OPEC, basket of crude, including Nigeria’s Bonny Light, dropped from over $46 to $43.90 per barrel. According to OPEC, “the price of OPEC basket of 14 crude stood at $43.90 a barrel on Tuesday, compared with $44.46 the previous day, according to OPEC secretariat calculations.
Nigeria’s Oil Exports To Exceed 2 Million bpd
Nigeria’s crude oil exports are expected to hit two million barrels per day (bpd) in August, the highest level planned for 17 months, as the nation’s oil industry nears a full recovery from militant attacks that crippled production last year. Resurgent production, if sustained, will put further pressure on efforts by the Organisation of Petroleum Exporting Countries (OPEC) to cut output to shore up oil prices, Reuters said. Meanwhile, oil prices tumbled yesterday with West Texas Intermediate (WTI) crude prices dropping to a 7-month low, breaking through support levels. The market has been in a distinct bear trend since late May, losing nearly 16 per cent over this period.
Etisalat Has Paid Over 50% Of Original Loan
Contrary to the widely reported misrepresentations about Etisalat Nigeria’s debt obligation to the consortium of 13 banks, facts emerged yesterday that the actual amount being owed the lenders by the telecommunication firm is $500million (N165bn). Checks by our correspondent revealed that Etisalat has serviced the $1.2bn loan by more than half of the total amount being owed its creditors since 2013 and what actually remained to be paid is far less the amount being reported in the media. “The actual outstanding on the Etisalat loan is about $500m (i.e. N165bn). This is in view of the fact that Etisalat has efficiently serviced the $1.2bn loan up until earlier this year when discussions with the banks regarding the repayment restructuring commenced. I can confirm to you in confidence that the company has made repayment of over 50 per cent of the original loan so far”, a source within the banking consortium disclosed.
FG begins Move To Reduce Price Of Rice
The Federal Government is working toward reducing the price of fertiliser to cut down the price of locally produced rice. The minister, who said this on Wednesday when he featured on a television current affairs programme on the 2017 Budget in Abuja, said that the Federal Government was collaborating with the Morocco Government in this regard. “The imported rice is coming in; most of them are subsidized and undercutting the locally produce rice, which has higher quality. “The problem is bringing down the price of our rice; we are trying to support rice production by bringing down the price of fertiliser because the price of inputs determines the price of output.
Global Stock Markets Slide On Oil Price Slump
European stocks sank on Wednesday, after losses in Asia and on Wall Street, as the energy sector took a beating from an oil price slump. Crude prices were lower again, after diving more than two percent on Tuesday on increasing fears of a global supply glut, as continued production in the US and elsewhere offset an OPEC output cut deal. “Cheap oil is taking its toll on the global equity markets,” noted analyst Ipek Ozkardeskaya at trading firm London Capital Group. Crude prices are considered crucial to the smooth running of world financial markets because the commodity oils the wheels of the global economy.
Indonesian Firm To Build Refinery In A’Ibom
An Indonesian firm, PT Intim Perkasa Nigeria Limited, a subsidiary of PT Intim Perkasa, Indonesia, has indicated interest to build a refinery in Nigeria. The feat, if achieved, will give traction to the Federal Government’s plan to attract investment in modular refineries as part of its efforts to boost local refining capacity. Mr. Adi Hartadi, the Head of Investor Relations of PTPP (Persero) Tbk, partners to PT Intim Perkasa Nigeria Ltd, who disclosed this in Abuja during a business meeting with the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, yesterday, stated that the proposed refinery would be located in Akwa Ibom State.
FG, Germany Sign €10m Polio Aid Agreement
The Federal Government and Germany on Wednesday signed a €10m aid agreement to eradicate polio in Nigeria. The agreement was signed in Abuja by the Foreign Affairs Minister, Geoffrey Onyeama; and the German Ambassador to Nigeria, Mr. Bernhard Schlagheck. Onyeama said the €10m grant would facilitate Nigeria’s quest to totally eradicate polio in the country. He noted with concerns that government’s efforts had some setbacks due to the activities of terrorists in the north eastern parts of the country.