WorldRemit now at your service as CBN licenses 11 money transfer operators – The Cable

The Central Bank of Nigeria (CBN) has announced new licences for 11 International Money Transfer Operators (IMTOs), including World Remit.

Earlier, the CBN had alerted Nigerians to cease transacting money transfer businesses with unregistered money transfer operators.

“This warning has become necessary because of the activities of some unregistered IMTOs, whose modes of operation are detrimental to the Nigerian economy,” the CBN had said.

The act was seen as banning all unregistered IMTOs from Nigeria’s foreign exchange market, but the CBN said the IMTOs could get licences, via an ongoing process.

The CBN’s action has yielded results, with 11 hitherto unregistered IMTOs now registered.

“In furtherance of efforts to liberalise the Foreign Exchange Market, ensure liquidity and make foreign exchange more readily available to low end users, the Central Bank of Nigeria (CBN) has licensed more International Money Transfer Operators (IMTOs) to operate in Nigeria,” Isaac Okorafor, acting director of corporate communications of the bank, said via a statement.

Read more at https://www.thecable.ng/worldremit-now-at-your-service-as-cbn-licenses-11-money-transfer-operators

Soludo backs Buhari’s emergency bill, proposes N19trn ‘anti-recession’ spending – The Cable

Charles Soludo, former governor of the Central Bank of Nigeria (CBN), has expressed support for President Muhammadu Buhari’s emergency economic bill aimed at reviving the economy.

In a mini-blueprint for the All Progressives Congress (APC), Soludo also proposed a public spending of 15 percent to 20 percent (N14trillion to N19trillion) of the nation’s gross domestic product (GDP) to steer Nigeria out of recession to the next level.

He said the document, acquired by TheCable, is not a “blueprint” in itself but “only broad pillars”, which could be worked upon by a dedicated team to save the economy.

NIGERIA ALMOST A FAILED STATE

Highlighting the challenges face by the country, Soludo said Nigeria is ranked number 13 in the failed/fragile state index, behind Somalia, South Sudan, Central African Republic, Sudan, Yemen, Syria, Chad, Congo D.R., Afghanistan, Haiti, Iraq, and Guinea.

The professor of economics said this is due to uneven economic development, poverty and economic decline, demographic pressure, group grievance, refugees and IDPs, human flight and brain drain, state legitimacy, human rights issues and rule of law, poor security apparatus, factionalised elite and external intervention.

NIGERIA — AFRICA’S 2ND LARGEST ECONOMY — COULD AVOID RECESSION

Soludo stated that Nigeria’s GDP compression from about $575 billion to about $296 billion (almost 50%) back to 2nd position in Africa after South Africa could have been avoided.

“Exchange rate and crude capital controls: confusing trial-and-error of tried and failed neo-socialist command and control policy regime of 1960s- mid 1980s.

“As predicted, quantities (employment and output collapse)! Capital market comatose; capital flight with vengeance, private investment pulse, inflation soars, and twin deficits exacerbate. Economy in Recession compared to APC 10% Growth; 3 million jobs p.a.”

He said the recession was caused by “delayed, incoherent (dysfunctional) and incomplete adjustment exerting great toll on the economy”.

“Outcomes so far (especially in 2016) self-inflicted by acts of omission and commission. Nigeria would have avoided a recession: One year enough for blaming fall in oil prices; after that blame our failures.”

Read more at https://www.thecable.ng/soludo-backs-buharis-emergency-bill-proposes-n19trn-anti-recession-spending

Spain imports N1.38trn products from Nigeria – Today

Mr Pablo Segrelles, Economic and Commercial Counsellor at the Embassy of Spain in Nigeria, on Tuesday announced that Spain had in 2015 imported products worth N1.38trillion (4 billion Euros) from Nigeria.

Segrelles, however, told the News Agency of Nigeria (NAN) in Lagos that this year’s economic situation in Nigeria would adversely affect his country’s importation of oil, gas and other products from Nigeria.

“Until this year, the volume of trade between Nigeria and Spain was much larger than most people are aware of.

“In 2015, Spain imported more than 4 billion Euros worth of products from Nigeria.

“But, this would be less this year because of the fall in prices of oil and the current economic situation.

“Even at this time of the year, Spain has not imported up to 300 million Euros worth of products from Nigeria,’’ he said.

Read more at https://www.today.ng/business/174811/spain-imports-38trn-products-nigeria

Militants say attacked pipeline in Nigeria’s southern Delta state – Reuters

YENAGOA, Nigeria Aug 30 (Reuters) – A militant group on Tuesday said it attacked a pipeline operated by the Nigerian Petroleum Development Company (NPDC), a subsidiary of Nigeria’s state oil company, in the country’s restive southern Delta region.

The Niger Delta Greenland Justice Mandate said in a statement that it attacked the Ogor-Oteri pipeline in Delta state, operated NPDC and Nigerian energy company Shoreline, at around 03:00 a.m. (0200 GMT) on Tuesday.

A spokesman for the state oil company NNPC could not immediately be reached and Reuters has not been able to independently verify details of the alleged attack.

OPEC member Nigeria has seen its oil output fall by around 700,000 barrels a day to 1.56 million bpd due to attacks on oil pipelines in the southern energy hub, home to much of the country’s oil and gas wealth, since the start of the year.

“The Niger Delta Greenland Justice Mandate remains underailed on its mission to getting justice for the people,” said the group, previously unknown before an attack on Aug. 11 . It also criticised other militants for participating in talks with the government.

It comes the day after Niger Delta Avengers, the group that claimed responsibility for most attacks in the impoverished region where militants want a greater share of the country’s oil wealth, said it had halted hostilities.

Nigeria’s Central Bank sells dollar to support Naira – Reuters

LAGOS Aug 30 (Reuters) – Nigeria’s central bank sold around $1.5 million at the interbank forex market on Tuesday to support the local currency and ensure the closing rate stabilises, traders said.

The naira closed at 305.50 to the dollar on the interbank market, same level it has traded since last week, having touched 325.50 a dollar intraday, but gained after the central bank’s intervention.

Traders said the naira had consistently closed around 305.5 to the dollar since Aug. 22, an indication that the central bank is concerned about a particular price range for the local currency.

“Actually, we don’t expect the central bank to continue to keep the rate at this level considering what the demand is … but it seems they (central bank) are concerned about a particular closing rate,” one senior currency dealer said.

On Monday, the currency market registered $327 million worth of trades, about six times more than its usual volume. That included a single $270 million transaction at 345 naira per dollar, by foreign investors buying local currency bonds.

Average trading is around $50 million a day on normal days. It might reach $100 million on days the central bank intervenes in the currency market.

Traders said dollar shortage remains a major concern in the market even with the daily intervention by the central bank and a pocket of flows from offshore investors.

The naira traded at a fresh record low of 418 to the dollar on the black market, against 414 a dollar on Monday.

Nigeria loses N105.9bn to gas flaring in six months – Today

Nigeria lost about $336.33 million in the first half of 2016, as oil and gas companies operating in the country flared 112.11 billion Standard Cubic Feet (SCF) of gas between January and June 2016, according to data obtained from the Nigerian National Petroleum Corporation, NNPC.”

At the Nigerian Gas Company’s average gas price of $ per $1,000 SCF of the commodity, the flaring of 112.11 billion SCF translates to a loss of $336.33 million or N105.9 billion at current exchange rate.

Giving a month-on-month, MoM, breakdown of the volume of gas flared by oil and gas companies in the period under review, the report stated that in January 2016, 22.32 billion SCF of the commodity was flared; 20.38 billion was flared in February; 20.11 billion SCF in March, while in April, May and June, 18.7 billion SCF, 15.8 billion SCF and 14.8 billion SCF respectively were flared.

NNPC, in its Monthly Financial and Operational Report for the month of June 2016, also stated that the country earned $451.24 million or N142.14 billion, from gas export in H1’16.

In addition, the NNPC report stated that the country earned N13.528 billion from domestic sale of gas in the period under review.

The report further stated: “The MoM breakdown of the amount earned from gas export in H1’16 showed that the country raked in $135.89 million, $72.53 million, $2.28 million, $131.17 million, $60.25 million and $49.12 million, in January, February, March, April, May and June 2016, respectively.

Read more at https://www.today.ng/business/174614/nigeria-loses-n105-9bn-gas-flaring-months

Biggest African Economies Stall on Politics, Commodity Slump – Bloomberg

Africa’s two largest economies are stalling amid slumping commodity prices and political infighting that’s hampering decision making.

A government report on Wednesday will probably show Nigeria contracted for a second consecutive quarter in the three months through June as the price and output of oil, its main source of revenue, were squeezed.

While South Africa may have avoided falling into a recession, according to the median estimate of five economists surveyed by Bloomberg, the continent’s most-industrialized economy will not grow this year, the nation’s central bank said last month.

The global slump in commodity prices and weak demand from the continent’s main export partners have hit Nigeria, Africa’s second-largest oil producer, and South Africa, where mining produce accounts for about half of export earnings, weighing on both economies.

A shortage of foreign currency in Nigeria after the central bank held a currency peg for more than a year, curbed imports, further limiting output, while political uncertainty in South Africa increased in the last week.

“Both countries’ economies are on a declining path,” Manji Cheto, senior vice president at Teneo Intelligence in London, said by phone. “That’s being led by politics in South Africa, and government policies that are reactive in Nigeria and might not work in the short term.”

Read more at http://www.bloomberg.com/news/articles/2016-08-29/africa-s-biggest-economies-stall-on-politics-commodity-slump

Investors to Inject $14bn into Nigerian Economy – Thisday

International investors, under the aegis of Greenstone Capital International Africa and Tacnero Global, have announced the approval of $14billion for Nigeria out of the $200billion that would be injected into five African countries.

The money is to be warehoused in Standard Chartered and two other Nigerian banks for immediate project execution in Nigeria.

The group’s legal adviser, Greg Anumenechi, who made this known in a statement said the investors were still committed to strategic sectors of the country’s economy including sectors ‎like Agriculture, Aviation, Medicals, Solid Minerals, Marine, Power and Petroleum.

The investment tagged AMPLE, will be extended into real estate, Industries, Information Technology, Parks, Education and the expansion of Nigeria’s version of Silicon Valley. Other African countries to benefit are Ghana, Democratic Republic of Congo, Somalia and South Africa.

‎Anumenechi noted that the investors had already gotten the approval for a Silicon Valley University in Lagos State, adding that they were also investing in the development of clean energy to serve the entire country as well as building an ultra-modern modular refinery for oil and gas development.

He noted in the statement that the Silicon Valley Charis International University has been described by Anthony Owens, a British Chartered Accountant from the UK group as being the first in Africa for ICT Industrial Park.

Read more at http://www.thisdaylive.com/index.php/2016/08/30/investors-to-inject-14bn-into-nigerian-economy/

External Reserves Rise by $595m as Offshore Investors Stake $327m on Bonds – Thisday

Nigeria’s external reserves, which have plummeted for about two months, pared some of the losses in recent weeks when they rose by $595 million in just five days to $26.196 billion monday.

The marginal accretion represented an increase of 2.26 per cent, compared with $25.601 billion as of August 24.

The development was attributed to the inflow of funds into the country’s fixed income market.

THISDAY reported yesterday that there had been renewed interest by both foreign and local investors in the fixed income market given the attractive yields.

This was largely buoyed by a single $270 million transaction at N345 per dollar by Citibank Nigeria which bought 11-months treasury bills on behalf of offshore investors.

But other transactions were carried out at between N314.50 to N317.34 to the dollar.

The FX market registered $327 million worth of trades yesterday, about six times more than its usual volume, the Chief Executive Officer of FMDQ OTC Securities Exchange, Mr. Bola Onadele, disclosed.

Average trading is around $50 million a day on normal days, but might reach $100 million on days the Central Bank of Nigeria (CBN) intervenes in the currency market.

Traders told Reuters that the central bank sold an undisclosed amount of dollars close to the end of market session, to help prop up the naira.

Yesterday’s surge in trading came after the central bank said on Friday that it planned to offer N212.85 billion treasury bills maturing between 91-days and 1-year this week.

The central bank said it would sell N45.85 billion worth of the 91-day bills, N62 billion of the 182-day paper and N105 billion of the 1-year debt. Payment for the purchase will be effected on Thursday.

The CBN has been selling short-dated open market bills at yields as high as 18 per cent in an effort to attract offshore funds, most of whom fled Nigeria’s bond and equity markets during a financial crisis that began when oil prices plunged.

Read more at http://www.thisdaylive.com/index.php/2016/08/30/external-reserves-rise-by-595m-as-offshore-investors-stake-327m-on-bonds/

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Dollar to Naira Rate Black Market August 30 2016

Dollar to Naira Rate Black Market August 30 2016. Today’s Naira Black Market Exchange Rates. Dollar to Naira. Pounds to Naira. Euros to Naira.

These are the prevalent rates for Lagos. Actual rates may vary slightly based on vendor. Rates are updated during the day as they change.

NAIRA (N)

USD ($)

EURO (€)

GBP (£)

BUY/SELL

BUY/SELL

BUY/SELL

30/8/2016

410/417

450/460

515/530

29/8/2016

405/413

450/460

515/530

26/8/2016

402/412

440/455

515/530

25/8/2016

401/406

440/450

510/525

24/8/2016

395/401

438/448

510/517

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Check out trending news stories that could affect today’s black market rates at fxmallam.com/news/.