Nigeria approves plan to borrow more from abroad as recession hits

Nigeria's government has approved a three-year plan to borrow more from abroad, Finance Minister Kemi Adeosun said on Wednesday after the economy slipped into recession for the first time in more than 20 years.

The government has so far disbursed more than 400 billion naira in capital expenditure this year, part of a record 6.06 trillion naira ($30 billion) budget for 2016, Adeosun said last week
But with lower oil prices and attacks on oil facilities, it has struggled to fund its budget, aimed at averting the recession.
Data on Wednesday showed Nigeria had slipped into recession and the naira was quoted at a new record low of 420 per dollar on the black market as chronic hard currency shortages continued to hurt businesses. The news sent its dollar bonds down to more than two-week lows.
Adeosun said the drop in oil prices had accelerated the recession and that Nigeria had to tackle structural problems that had stoked inflation. She said interest rate hikes were not the answer.
"If we rely on oil and the price of oil remains low and the quantity of oil remains low, we can't grow. We have to grow our non-oil economy," she said told reporters in Abuja after a cabinet meeting.
Adeosun said the government would look for soft loans in addition to tapping the commercial Eurobond market and that the West African country was negotiating with institutions including the World Bank, China Eximbank, the Development Bank of Japan and the African Development Bank.
Nigeria has said it wants to switch its debt mix so that 40 percent of loans would come from abroad, compared with 16 percent now, and extend its debt maturity profile.
It plans to borrow as much as $10 billion from debt markets, with about half of that coming from foreign sources and is seeking advisers to manage a $1-billion Eurobond it intends to offer this year.
Adeosun said monies from the Eurobond would be spent on power transmission projects, solid mineral development and agriculture.
She said the World Bank was providing $150 million for polio immunization.
The medium-term borrowing plan, which covers 2016-2019, will now be sent to parliament for approval.

(C) Reuters News

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Nigeria central bank ends banks' suspension from FX market

Nigeria's central bank has ended the suspension of eight lenders banned from the interbank currency market for failing to remit money owed to the government, it said on Wednesday.

The central bank tightened restrictions on the flow of dollars to domestic lenders in March. That forced the banks to delay hard-currency loan and trade repayments and increased their risk of default.
Nine banks last week failed to remit at least $2.1 billion in deposits from two state-owned energy companies into a government account, leading to their suspensions.
The central bank lifted the suspension on one of the nine, United Bank for Africa, last Thursday.
Tokunbo Martins, the central bank's director of banking supervision, said the other eight had all submitted a "credible repayment plan" to remit the outstanding money.
"As a result of that, all those banks have been reinstated in to the foreign exchange market," she said.
President Muhammadu Buhari last year ordered all state accounts to be merged into a single one at the central bank to reduce corruption.

Before the reinstatement, some of the bank have been finding it difficult to provide foreign currencies for their domiciliary account holders. 

A check in some of the banks showed that cash withdrawal from domiciliary accounts were restricted because of hard currencies shortages, putting their customers in dire situation. 

(C) Reuters News

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Nigeria's foreign reserves fall to $25.45 bln by Aug.29

Nigeria's foreign exchange reserves fell to $25.45 billion by Aug. 29, down 2.86 percent from the previous month, central bank latest data showed on Wednesday as the bank stepped up support for its ailing currency.
Dollar reserves of Africa's largest economy stood at $26.20 billion in end of July. The central bank data showed reserves had declined 18.9 percent from a year ago.
However, the naira hit a fresh all-time low of 420 per dollar on the black market on chronic dollar shortages on Wednesday, same day Africa's most populous nation officially slid into a recession.

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Kenya's anti-graft chief, accused of conflict of interest, quits

The chairman of Kenya's anti-graft body said on Wednesday he had quit after lawmakers recommended removing him from office over an alleged conflict of interest between his family business and another state-run agency.

Kenyan media reported parliament's Justice and Legal Affairs Committee wanted lawmakers to ask President Uhuru Kenyatta to set up a tribunal to force out Philip Kinisu.
The committee had accused Kinisu of a conflict of interest in his family company's dealings with state-run National Youth Service, which the Ethics and Anti-Corruption Commission (EACC) that he leads was investigating over lost money.
Kinisu denied any wrongdoing by him or the company.
"At the same time, I am mindful that significant resources and attention are being expended by the state and public on deliberating these matters rather than to the fight against corruption," he said in a statement announcing his resignation.
Kenya has a history of corruption scandals that have failed to result in high-profile convictions, angering the public who say it demonstrates top officials can act with impunity and encourages graft by ordinary employees.
Faced with a growing public outcry last year, Kenyatta promised to root corruption out of the government. Five ministers stepped aside in 2015 after they faced investigations and then lost their jobs in a reshuffle. Two former ministers face trial proceedings.
Kinisu took up his position in January.
The EACC is an independent state-funded institution, whose head is nominated by the president and vetted by parliament.
Kinisu's predecessor, Mumo Matemu - who also quit - had faced allegations of incompetence that he denied, but said he was resigning for the sake of the campaign against corruption.

(C) Reuters News

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U.S. to urge G20 to boost economies, heed citizen anger

U.S. President Barack Obama will urge leaders of the world's major economies to use fiscal policy and other tools to boost growth while paying more attention to angry citizens who feel left behind, Treasury Secretary Jack Lew said on Wednesday.
The United States will also call for the Group of 20 leading economies to keep their steel industries from getting so big that factories are underused, Lew said in a preview of the U.S. message to the Sept. 4-5 G20 summit in Hangzhou, China.

Lew's comments suggest Washington could press Beijing at the summit on excess capacity in China's giant state-backed steel industry. The remarks also point to the rising awareness among leaders of advanced economies that support for global trade and financial integration cannot be taken as a given.
"There are very real concerns about globalization and technology, but the answer cannot be to close ourselves off," Lew said in prepared remarks at the Brookings Institution.
In the campaign ahead of the U.S. presidential election in November, both major candidates have expressed skepticism over free trade pacts both new and old. Britain voted in June to leave the European Union, another sign of discontent with globalization.
The G20 needs to find ways to boost the living standards of poor and middle-class families, Lew said, saying Obama will press G20 leaders to make banking services universally available.
America has been pressing other G20 governments to spend more when possible to boost the global economy, which has cooled as weaker growth in China reduced demand for commodities like copper and iron. Europe and Japan have also been growing at lackluster rates.
Obama will also urge more countries to launch reviews of fuel subsidy programs, part of a commitment at the G20 to phase out inefficient programs supporting fuel purchases, Lew said.
Nigeria’s Dangote Cement said on Wednesday it has jacked up price of its commodity to mitigate the effect of rising cost of production, a statement from the company said.
It said it has increased the ex factory price of its product by 600 naira, slight higher than the price before last year September price slashed.
The company said the disruption of gas supply which was its preferred fuel has deteriorated in the third quarter of the year, while the use of alternative fuels such as LPFO and coal have led to a substantial cost increase.
“In addition, the naira has experienced a significant devaluation against the dollar over the past few weeks. Both of these external factors have combined to increase our costs substantially in our largest market.
Dangote cement has assured that it was working on its coal mine initiative in Nigeria and expect to begin mining process by November in its drive toward self-sufficiency and eliminate dependence on gas supplies and imported coal.
“Own-mined coal wil be cheaper than gas, which is priced in dollar but paid in naira… this will reduce our need for foreign currency at this difficult time for the Nigerian economy,” the company said.
It said it hope to open new plants soon in Congo and Sierra Leone to further strengthen the company profitability ad generate additional foreign exchange earnings.

(C) Reuters news

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Nigeria's Dangote says jacks up cement prices to mitigate production cost

Nigeria’s Dangote Cement said on Wednesday it has jacked up prices of its commodity to mitigate the effect of rising cost of production, a statement from the company said.
It said it has increased the ex factory price of its product by 600 naira, slight higher than the price before last year September price slashed. Dangote cement was selling at the open market at 1,550 naira per 50 Kg bag before the price hike, which was effected on Monday before the announcement in a statement to the Nigerian Stock Exchange

The company said the disruption of gas supply which was its preferred fuel has deteriorated in the third quarter of the year, while the use of alternative fuels such as LPFO and coal have led to a substantial cost increase.
“In addition, the naira has experienced a significant devaluation against the dollar over the past few weeks. Both of these external factors have combined to increase our costs substantially in our largest market.
Dangote cement has assured that it was working on its coal mine initiative in Nigeria and expect to begin mining process by November in its drive toward self-sufficiency and eliminate dependence on gas supplies and imported coal.
“Own-mined coal wil be cheaper than gas, which is priced in dollar but paid in naira… this will reduce our need for foreign currency at this difficult time for the Nigerian economy,” the company said.
It said it hope to open new plants soon in Congo and Sierra Leone to further strengthen the company profitability ad generate additional foreign exchange earnings.

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Nigeria's naira hits new record low of 420 per dollar on black market

Nigeria's naira was quoted at an all-time low of 420 to the dollar on the unofficial market on Wednesday, the same day Africa's biggest economy officially slid into recession.
The currency traded at 418 to the dollar on Tuesday and has been under pressure on the black market for months.

The naira was quoted at 317.09 to the dollar on the interbank market by 1224 GMT, against a 305.5 close on Tuesday.
But bureaux de change operators raised hope of a gradual appreciation of the local currency in the near term as the central bank licensed 11 new international money transfer operators to address the dollar supply side.
"Depending on the effective implementation of the central bank's policy, the appointment of new international money transfer operators will ensure that banks will have more dollar to sell to bureaux de change and provide the needed liquidity in the market," Aminu Gwadabe president of bureaux de change association said.
Gwadabe said the central bank's directive that commercial lenders should sell dollar inflow through money transfer operators to bureaux de change has boosted daily dollar supply to the currencies agencies to around $10-$20 million and this could further boost supply and help support the naira.
The Nigerian Bureau of Statistics (NBS) said on Wednesday that gross domestic product (GDP) contracted by 2.06 percent after shrinking 0.36 in the first quarter.

(c) Reuters News

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Nigeria slides into recession as GDP contracts by 2.06 pct in Q2, recovery seen in H2

Nigeria, Africa’s top crude producer officially slides into recession as its Gross Domestic Product (GDP) contracted by 2.06 percent in the second quarter, the statistics office said on Wednesday, but the government said the economy is expected to perform better in the second half of the year.
The Nigerian Bureau of Statistics (NBS) said the non-oil sector declined due to a weaker currency while lower oil prices dragged the oil sector down. 

Output shrank by 0.36 in the first quarter.
Nigeria is in the midst of an economic crisis triggered by a slump in crude prices, its mainstay, which has hammered public finances and the naira and caused chronic dollar shortages. Crude sales accounts for around 70 percent of government revenues.The West African nation was last in a recession, for less than a year, in 1991, and experienced a prolonged one that started in 1982 and last until 1984, NBS data showed.
On Wednesday, the statistics office also said annual inflation rose to 17.1 percent in July from 16.5 percent in June, and food inflation rose to 15.8 percent from 15.3.
However, the country’s vice president said the government is hopeful that the economy will recover by the second half of the year.
"It is likely the second half will be better than the first half of 2016. This is because many of the challenges faced in the first half either no longer exist or have eased," Yemi Osinbajo said in a statement.
It said growth rates are likely to improve Indeed, as spending on projects yield results.
As oil-dependent Nigeria slides to recession for the first time in more than two decades, the effects of the downturn are being felt across the country — in local markets, factories, government offices and among informal traders.
In June, the International Monetary Fund sharply slashed its growth forecast for Africa’s largest economy, saying it would contract by 1.8 per cent this year, down from its estimate in April of 2.3 per cent growth for the year. The slowdown was triggered by tumbling crude prices and is heaping pressure on the government of Mr Buhari, who took office 15 months ago amid huge expectations following the first democratic transition of power to an opposition candidate in Nigeria’s history.
President Mohammadu Buhari has consistently urged citizens to be patient, but that message offers little comfort to most people.
Official unemployment increased 70 per cent in the first quarter of 2016 compared with the same period the previous year, reaching 12.1 per cent.
At the same time, prices of food and other goods are soaring, with annual inflation rose to 17.1 percent in July from 16.5 percent in June.
“The difficulty is that income has dropped,” says Abdullahi, 25, who manages his family’s perfume shop in Daura. “People have less spending money. Their concern is getting food, and prices are rising.”

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Militants say attacked pipeline in Nigeria's southern Delta state

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.
(C) Reuters News

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Nigeria's naira woes worsen, falls to 418 a dollar at black market

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 even as the naira traded at a new low of 418 to the dollar on the parallel market.

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 new rate at the parallel market may not be unconnected with fear of persistent dollar shortage in the Africa's most populous country and the inability of the central bank to meet demand for the greenback.

The country's foreign exchange reserves rose to $26.19 billion by August 29, versus $25.78 billion on August 16, Nigeria remains short on dollar inflow due to weak oil supply and price.

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African billionaire, Dangote plans 12, 000 Mw power generation in 2-year

The hope for improved power supply in Nigeria is getting brighter with plans by African billionaire, Aliko Dangote’s company to generate about 12,000 megawatts of electricity for the Africa’s most populous country by 2018.

There has been an increased despondence in the country due epileptic power supply to industries and other electricity users, including private individuals who spent millions of naira on independent generation.
Many firms are running on alternative power supply, raising cost of business, while some have closed shop because they could not sustained the additional cost spent on power generation.
“Our gas project would have our gas pipelines on the seabed. The output should be able to provide about 12,000MW of power. We see a lot of transformation when we are done with most of our projects by 2018,” Dangote told a conference in Lagos on Monday.
He also said that his business estate would start selling foreign exchange to the Central Bank of Nigeria by 2020.
“We are looking at a situation that by 2020, we will be the one selling FX to the CBN. Our projects are mainly import substitution. We are working to be self-sufficient to grow about a million tonnes of rice over the next five years.
“We have 15 countries in the ECOWAS community that are duty-free. The export market is big and profitable if you have the capacity. Players in the manufacturing (sector) should be encouraged to export if they have the capacity. We must also meet local consumption.”
Dangote said the fall in crude oil price was not a curse and that the nation must use the opportunity to explore the potential in other sectors of the economy.
He said, “This is the right moment to pursue the diversification of the economy, which we have been talking about. I know that once oil gets back to $80 per barrel, we will go back to the same misbehaviour.
“But I think this is the right time for that. Government must come up with the right policy, because if we don’t do it now, we may not do it. But low prices do not mean doom. In 1998-1999, the price of oil was $9. What we need to do is just to block the leakages and pursue diversification.”
According to Dangote, the monthly revenue inflow from oil, which used to be $3.2bn, is now around $1bn, and this has caused a number of challenges for businesses in the country.
“There are some areas where we are facing serious challenges and there are some where we are not. It depends on your business model. If your business model is to import 100 per cent, definitely, you will be facing challenges, because the inflow of foreign exchange is not where it used to be a year and a half ago,” he added.
The Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe, on his part, said a number of manufacturers were facing hard times due to their inability to access forex to buy raw materials.
According to him, there is a need to explore import substitution, while efforts are being made to boost forex supply in the country.
Wigwe said, “We have a lot of manufacturers who have to rely on forex for their raw materials but who are going through tough times. However, are there opportunities? I believe there are. I think it is time for us to move towards import-substitution. But I think we need to do things to support the supply side of forex and liberalise the market.
“Even for those who have to source their raw materials locally, there is a value chain effect. If the entire value chain in a production process is not sorted out, we will have a problem. So, access to foreign currencies for raw materials is important. However, it is important that people start looking at how to use local raw materials to produce.”

(C) Nigeria Electricity Hub

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African migrants go to Italian quake zone to help survivors

African migrants hoping to start a new life in Italy after risking their lives crossing the Mediterranean have headed to the area of Wednesday's earthquake, helping local people who lost everything in the disaster.
Wearing bright orange overalls, the group from a temporary hostel about 50 km (30 miles) away blended in on Friday with other volunteer workers who have come from all over Italy.
"We need to help the people here," said a 20-year-old man from the West African state of Benin, who gave his name only as Abdullah.

"We saw people losing their lives and we feel bad. It's to show respect for them and their dignity," he told Reuters Television on the outskirts of Pescara del Tronto, one of the devastated villages.
Using shovels, hoes and rakes, the group of about 20 migrants helped to prepare the ground for tents and cleared a field for helicopter landings. During a break, the migrants, who are all Muslims, knelt to pray near one of the tents.
"It was their idea. They wanted to do something, so we helped make it happen," said Letizia Dellabarba of the Human Solidarity Group (GUS) charity that brought the migrants to Pescara del Tronto.
Hopes of finding more survivors faded on Friday three days after the powerful quake hit central Italy, with the death toll rising to 267.
Italy has taken in more than 420,000 boat migrants, most from Africa, since the start of 2014. The influx has caused political friction, with some right-wing parties lambasting the government for not doing more to halt the flow.
Even the tragedy of the earthquake did not temper some anti-immigrant sentiment in the country.
Under a headline reading "Criminal State", the right-wing newspaper Libero ran two pictures side-by-side on its front page - one showing Italian quake victims sleeping on the floor of a basketball court and another showing smiling African immigrants in front of a hotel where the government is putting them up.
Dellabarba said most of the migrants who helped in the quake zone were from Burkina Fasso, Niger and Senegal and had arrived in Italy in boats run by human traffickers.
She said some of them had been jailed in Libya before paying traffickers to travel on unseaworthy rubber boats to Sicily. Thousands of migrants have died trying to make the crossing.
All of the group are seeking asylum in Italy, she added.
(C) Reuters News

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Nigerian interbank rate trades flat on budget cash expectations

Nigeria's overnight naira interbank lending rate closed around the 20 percent level on Friday, a range it has traded all week because of low liquidity and the central bank's cash withdrawal through treasury bills sales, traders said.

The central bank sold 71.6 billion naira ($227.48 million) in 195-day open market operation (OMO) treasury bills at 18 percent on Friday to reduce liquidity in the banking system in its bid to support the naira.
The local currency closed flat at 305 to the dollar on the official interbank market, but fell to a new record low of 412 to the dollar on the parallel market.
However, traders said that the expectation of the disbursal of July's budgetary allocation to government agencies helped to calm the market.
"The market traded in anticipation of the release of the July budget allocations to states and local government, which hopefully should hit the system by Monday," one dealer said.
Nigeria's distributable revenues to the three tiers of government fell in July to around 494 billion naira after 559 billion naira in June as militant attacks hit oil revenues, the Finance Ministry said on Thursday.
Traders said interbank rates should trade at the 16 percent level by next week once July's budget allocations enter the banking system.
Nigeria, Africa's top crude producer, distributes revenues from oil exports and taxes among its three tiers - federal, state and local - every month. The portions for states and local governments pass through the banking system and boosts liquidity as they spend the money.
Market liquidity stood at 62 billion naira on Friday, but is expected to rise in the coming days after the budget disbursal, traders said.
(C) Reuters News

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Nigerian scholarship winner hopes to realize academic dream in China

Chris Eloho, a Nigerian student, is about to realize his dream of pursuing a Master's Degree in a Chinese university.
This is a dream the 23-year-old has held for six years, even before he gained admission to learn at a private university in his home state of Delta, where he studied Petrochemical Engineering for his Bachelor of Science program.

"I've always wanted to study in China, not anywhere else," he told Xinhua.
That explains his excitement when he received the news early this year that he had been chosen to study in China with a scholarship provided by the Chinese government.
"At first, I thought it was a joke ... Later, when it dawned on me that it was real, I didn't know how to contain my excitement," he said.
Eloho is one of 24 Nigerian students offered full scholarships earlier this month to pursue various degree programs in China.
The scholarship is part of the China-Nigeria Bilateral Education Agreement (BEA) seeking to enhance educational exchanges and cooperation between the two countries.
At a pre-departure ceremony held for the beneficiaries in Abuja a week ago, Qin Jian, the charge d'affaires of the Embassy of China in Nigeria, said education is one of the important areas of cooperation between the two countries.
"It is not only a demonstration of the close people-to-people exchanges between China and Nigeria, but also a great inspiration for deepening our bilateral exchange and cooperation in educational field in the future," Qin said.
He urged the awardees to seize the opportunity to study hard while getting to know China well and enhance friendship.
"In an environment of different language, culture and life in China, I hope you will overcome any difficulties and challenges with courage, make full use of time, acquire professional knowledge, and strive for excellent results so as to live up to the expectations of your parents and your mother country," he added.
At the same event, Nigeria's Permanent Secretary for Information Ayotunde Adesugba expressed gratitude to the Chinese government for extending another scholarship opportunity to excellent Nigerian students this year.
She said the consideration was well-appreciated by the government and people of the West African country, while urging the students to make good the opportunity given to them by doing great exploits in China.
The scholarship beneficiaries will begin to leave the shores of Nigeria next week or early September, to pursue their dreams. Some of them will be away for five years.
Eloho will join a two-year program to further his study in petrochemical engineering at the prestigious Huazhong University of Science and Technology (HUST) in China.
He said since his letter of admission arrived, he has been reading so much about Wuhan, capital of central China's Hubei province, where the university is located.
"My plan is to make great exploits in China, making every opportunity count. I have read a lot about China and I am glad that the opportunity has come for me to see for myself all the good things I have read and heard about that great country," he said.
Eloho said studying in China presented an opportunity to learn new things outside the four-corners of the classroom.
Now that his dream about studying in China is about to come true, Eloho promised to his parents to rank among the best students in his year of graduation.
"Coming back home with an excellent performance in my academics is my ultimate goal. This will make up for the years of sojourn in foreign land," he added.
Currently, about 237 Nigerian students are studying in China under government scholarship. Enditem
(c) Xinhua News Agency

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Nigeria to sell 213 bln naira treasury bills

Nigeria plans to offer 212.85 billion naira ($675 million) in Treasury bills maturing between 91-days and 1-year on Aug. 31, the central bank said on Friday.
The bank said it will sell 45.85 billion naira worth of the 91-day bills, 62 billion naira of the 182-day paper and 105 billion naira of the 1-year debt.

Payment for the purchase will be effected on Thursday, the bank said in a public notice.
Nigeria, Africa's top crude producer, issues treasury bills to raise cash to fund the government budget deficit, help manage banking system liquidity and curb rising inflation.

On Friday, the bank sold 71.6 billion naira worth of 195-day open market operation (OMO) treasury bills in its quest to support the naira and curb rising inflation.

The treasury bills sales helped to reduce the level of liquidity in the market and slow down demand for the local currency at the interbank forex market.

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Nigeria's naira hits record low of 412 to dollar on parallel market

Nigeria's naira was quoted at an all-time low of 412 per dollar on the parallel market on Friday as a dollar shortage persists, traders said.

Traders said some bureaux de change operators have been finding it difficult to access their forex account and get dollar supply after the central bank suspended nine commercial lenders from the market, putting further pressure on the local currency.
On Thursday the naira closed at 409 per dollar on the parallel market. On the interbank market it traded at 315 compared with 305 the previous day.
Traders said more of the demand are coming from parent wanting to pay school fees of their wards abroad and businesses sourcing for good in preparations for forthcoming Christmas festival.
According to market sources, 80 percent of bureau de change operators source dollar from some of the banks suspended from the interbank forex market by the central bank on Tuesday.

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Man plans sister’s kidnap for being stingy, demands N300,000

A 27-year-old man, Chigozie Egegonye, has been arrested by the Lagos State Police Command for allegedly planning the kidnap of his sister, identified only as Franca.
Franca and her four children had been declared missing since April 2016, when they suddenly disappeared from their home on Mayowa Street, Ago-Palace Way, Okota, Lagos.
PUNCH Metro gathered that Egegonye told his childhood friend, Michael Oluchukwu, that despite the wealth of his sister, she was stingy.

Our correspondent learnt that Oluchukwu, a cobbler, sent a text message to the victim, giving her an ultimatum of 12 hours to pay N300,000 or risk being kidnapped and killed.
It was learnt that Franca called the suspect and pleaded for her life, saying she could only afford N50,000.
Oluchukwu reportedly agreed and sent her his account details.
However, it was learnt that the victim had yet to send the money when she and her four children went missing.
Our correspondent gathered that the victim’s husband petitioned the State Department of Criminal Investigation and Intelligence Department, Yaba, after which detectives launched a manhunt for the suspects.
A police source said investigations revealed that Egegonye was behind the plot.
He said, “Chigozie (Egegonye) and Michael (Oluchukwu) are childhood friends. After losing contact, they reunited in Jakande Estate, Isolo, where Michael had his workshop.
“On April 13, 2016, Chigozie went to Michael’s shop and told him he had a sister who was so stingy that each time he demanded money from her, she wouldn’t give him. He asked him to send a threat message to her on the phone.
“They told the woman how she normally took her children to school every day. They said she should pay N300,000 within 12 hours or risk being eliminated together with her four children.”
The said Franca, who immediately became jittery, called back the phone number and said she couldn’t raise the sum within the time frame, but could afford N50,000.
The suspect was said to have sent a First Bank account number 3034268561 with the name Chigozie Egegonye.
Another source said Franca and the children went missing on that same day when the money had yet to be paid.
He explained that Franca’s husband got home only to discover that their apartment had been emptied.
He said, “The man got home on that day and discovered that his wife and the children were missing, including his two cars. He found the house scattered and all the luggage of the wife and children taken away.
“The man said he received a text message from his wife detailing the death threat she received. He said he called his in-laws to tell them he had not seen his wife and the children and they told him to go and find her. All of them thought he masterminded the kidnap of his wife and children.”
It was learnt that Franca’s husband wrote a petition to the police afterwards, which led to the arrest of Egegonye and Oluchukwu.
A source said the police used the account number and phone number of Oluchukwu to track him down.
He later led operatives to Oluchukwu’s house where he was also arrested.
However, Oluchukwu denied kidnapping his sister, saying she fled the house due to the disagreement she had been with her husband.
He said, “My sister and her husband are rich, but they always quarrel in the house. She had wanted to quit the marriage, but I begged her. My sister fears a lot. I and my friend sent a threat message to her line and she used that opportunity to run away from the house. I blame myself for everything that happened. I am now repentant. I wasn’t praying at home before I came here. Now, I lead the devotion in the cell.”
Egegonye, on his part, said greed and ignorance pushed him into the act, saying he had learnt his lesson.
The state Police Public Relations Officer, SP Dolapo Badmos, said she would call back our correspondent, but she had yet to do so as of press time.

(C) Punch

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Nigeria's distributable revenues fell to 494 billion naira in July

Nigeria distributed a total of 493.828 billion naira among its three tiers of government on Thursday at the regular meeting of the Federal Allocation Committee for the month of July.
According to the figures released by Office of the Accountant General of the Federation, the gross statutory revenue including solid minerals is 275.102 billion naira while the net allocation is 258.151 billion naira. The gross value added tax is 66.987 billion naira and the total distributable revenue is 335.759 billion naira.

Nigeria, Africa's biggest economy and an OPEC member which relies on crude sales for about 70 percent of national income, has been hit hard by the fall in global crude prices since mid-2014.
Militants have carried out a series of attacks on oil facilities in the southern Niger Delta energy hub in the last few months, reducing oil output by 700,000 barrels a day, according to state oil firm NNPC.
"Crude oil export volume decreased... partly because of a subsisting force majeure declared at (Shell's) Forcados Terminal," said Mahmoud Isa-Dutse, permanent secretary of the ministry of finance.
"Also, shut-in and shut-down of pipelines at other terminals due to the activities of vandals and maintenance impacted negatively on production," he said.
The distributable revenues includes value-added tax payments of 64.308 billion naira, the ministry said.

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Nigeria Cocoa Midcrop Yield Seen at 25-Year Low on Weather

Nigeria’s cocoa midcrop output is seen falling by as much as 70 percent this year from the previous season after unfavorable weather took a toll on the crop earlier in 2016, farmers said.
“This season’s midcrop harvest is the worst we have witnessed in the last 25 years,” Rufus Orosundafosi, a cocoa farmer, said by phone from the southwest cocoa-growing hub of Idanre that accounts for about 25 percent of the country’s production. “We will not get up to 30 percent of last year’s midcrop yield.”

Output for the midcrop from Orosundafosi’s 120 hectare farm in Idanre fell to 60 tons this year from its average of 370 tons in previous years. A similar trend is being reported across Nigeria’s southwest, which produces about two-thirds of the country’s cocoa, according to Raimi Adetunji, president of the Cocoa Farmers Association of Nigeria.
Nigeria’s two cocoa harvests include the smaller midcrop from April to June, and the main crop from October to December. The midcrop normally accounts for about a third of the country’s output. A prolonged dry spell early this year hurt the development of buds for the midcrop, according to farmers.
Nigeria is the world’s biggest cocoa producer after Ivory Coast, Ghana and Indonesia, with a government-estimated output of 350,000 tons in the 2013-14 seasons. The International Cocoa Organization estimates Nigeria’s output at 240,000 tons for the same period.
Year-on-year exports declined continually through the midcrop season, according to figures compiled by ports and shipping companies’ agents in the country’s main port of Lagos. Shipments fell 12 percent in April, 31 percent in May and 65 percent in June, the figures showed.

(C) Bloomberg

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Nigeria's former central banker seeks new economic direction

President Muhammadu Buhari has not come to terms with the economic realities of the day, as he has failed to combat economic challenges confronting the nation. 

This was the assertion of the former Central Bank of Nigeria, CBN, Governor, Professor Charles Soludo, who said the President’s economic policies, since he took over last year, were still based on campaign promises.

Soludo spoke, Thursday, in Kaduna at the Progressive Governors Forum’s 4th Progressive Governance Lecture series with the theme Building the Economy of States: Challenges of Developing Inclusively-Sustainable Growth. 

According to him, the country was dealing with political, economic and social shocks. He said: “Nigeria is facing unprecedented and tremendous political and economical challenges with global and local dynamics. 

“Regardless of these challenges, opportunities and possibilities abound if we address some fundamental issues. The key to achieving this is to have a development plan that is anchored on realising inclusive and sustainable growth. 

“Inclusive and sustainable growth cannot be achieved without conscious efforts to deconstruct the dynasties of poverty and maximise states and Nigeria’s comparative and competitive advantage. “Nigeria is not secured and can be made politically sustainable through the de-strangulation of the hold of the Federal Government over states. 

“I, therefore, recommend the restructuring of the economy from consumption-driven to production-based and consistency in micro-economic policies. “Encouraging fiscal federalism in ways that allow states to have greater control of their resources, evolution of a master plan for mass export-oriented industrialisation that answers the economic questions and realities of today. 

He called on “APC states to develop a peer review mechanism to track, measure and share knowledge, which will distinguish APC states from non-APC states.” Osinbajo The Vice President, Professor Yemi Osinbajo, who was also in attendance, said: “One of the major problems is with our ability to do things. Nigeria is not a place where there is a shortage of ideas or shortage of intentions. The issue really is getting things done.” 

The Vice President said some of the problems may not be resolved within months or a few years, “but we are called upon at this time in history to make a difference. And I believe that the times call for creativity, innovation, but more importantly these times call for depending on each other and looking to each other for solution. 

“We cannot operate in silos; we must be able to look to each other for development. I think the solution lies in what is going on in several different states.” el-Rufai Governor Nasir el-Rufai of Kaduna State, in his remarks, said: “Nigeria is facing an unprecedented economic crisis, most of it arising from circumstances of the present and of the past. 

“The worst job in Nigeria today is to be a state governor because we have to deal with inherited problems, which we have a duty to solve. We need a fundamental shift from the ways things were being done in the past.”

(C) Vanguard Newspaper

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Nigeria's naira hits record low of 409 to dollar on black market

Nigeria's naira was quoted at an all-time low of 409 per dollar on the parallel market on Thursday, compared with 402 per dollar at close on the previous day as dollar shortage bite harder in Africa's top crude producer.

Traders said the local currency fell due to increase demand for the dollar which they are unable to match with weak supply and the impact of the suspension of some commercial lenders from forex transaction by the central bank on Tuesday.
The central bank suspended nine banks from forex transactions on Tuesday for failing to remit money owed to the government, but re-admitted one of them on Thursday after it remitted the fund.
"The suspension of some banks from transaction in the forex market has really increased pressure on the market," said Aminu Gwadabe president of Bureaux de change association.
He said most of Bureaux de change have their accounts with the banks suspended by the central bank and this has reduced access to forex causing the naira to tumble.

(C) Reuters News

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Nigerian naira, Kenya shilling seen weaker, Ghana cedi to firm vs dollar

The naira is seen trading weaker in the coming days due to the dollar shortage and the impact of the central bank suspension of nine commercial lenders from forex transactions.
Traders said even though the central bank continued to sell dollars daily on the interbank market, its efforts were considered weak and inadequate.

The local currency was trading around 310 to the dollar on the interbank market, the same level as last week. The naira was quoted at 402 to the dollar on the parallel market compared with 397 a dollar last week.
The central bank suspended nine banks from forex transactions on Tuesday for failing to remit money owed to the government, but re-admitted one of them on Thursday after it remitted the said fund.

GHANA
Ghana's cedi is seen firm next week on improving forex inflows as offshore investors sell dollars to mobilise funds to buy domestic bonds, an analysts said.
The local unit was quoted at 3.9535 to the greenback at 1030 GMT on Thursday, down 3 percent since January, according to Reuters data.
"The government has reopened a 5-year (domestic) bond that is maturing on July 2021 and it is likely to lead to some forex inflows... I expect the cedi to regroup to the 3.9400-3.9550 range," said Barclays Bank Ghana currency dealer Jacob Brobbey.

KENYA
Kenya's shilling is seen easing, undermined by importer dollar demand from the energy sector, traders said.
At 1010 GMT, commercial banks quoted the shilling at 101.30/50 to the dollar, compared with last Thursday's close of101.45/55.
"Because this is going to be the end-of-month week, I still believe there will be a good amount of (dollar) demand in the market. I have a lot of oil clients, a lot of general retail importers," a trader at one commercial bank said.
Traders said they were also on the lookou for the central bank selling dollars. It did so on Thursday after the shilling weakened in reaction to an amended law that caps commercial lending rates.

(C) Reuters News

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Facebook Love : How father of 2 uses social media to lure, rape, rob ladies

It was the end of the road for a father of two, who specialised in using social media platforms, especially Facebook, to lure gullible ladies to hotels, where he sedates, rapes and dispossesses them of their valuables. 

The suspect, Oluwole Falaseye, 30, who used the name Nipheme Ajanaku, usually posed as an Abuja-based bank manager on Facebook. After familiarising himself with young ladies through regular chatting, he would book for a meeting in a hotel in Festac Town, Amuwo Odofin Local Government Area of Lagos State.

This was how he hooked up with a lady identified simply as Mercy and invited her for a birthday party in Opera Hotel, at Rasaq Junction, Festac Town, last Friday. However, Mercy, a student of Polymer Engineering at Auchi Polytechnic, Edo State, had an engagement outside Lagos and sent her cousin, Tinuke, who is also an undergraduate of Public Administration at The Polytechnic, Ibadan, Oyo State, to represent her. 

Victim’s account Narrating what transpired at the hotel, Atinuke said: “While at the hotel room, he demanded for my ATM pin, saying he wanted to transfer N30,000 into my account.

I was initially skeptical, but gave him because he said he was a bank manager and that his boss owned the hotel. 

“He offered me an alcoholic drink, but I declined because I don’t take alcoholic drinks. He offered me another, saying it was not alcoholic. I took it. That was all I could remember until I woke up to discover he raped me. 

“I was bitter, because he is not my boyfriend and I never bargained for such violation. He apologised and we went downstairs for the supposed birthday. He later told me he was going upstairs to see his boss. 

“I waited endlessly without seeing him. When I went to the room, I met the door opened, with the key still with me. I was shocked. “I discovered that my phones, a Samsung Galaxy S6 and another small phone, my necklace, ATM card and my wristwatch were gone. 

I went downstairs to inform the receptionists about the development and also asked if they saw him leaving. “They said they do not keep tab on their customers. I raised an alarm which attracted people.” She claimed that the suspect withdrew N172,000 from her account. 

When news reached Mercy, the girls planted a lady, who reached the suspect on Facebook, in the process of which he booked an appointment with her at Festac, only to be arrested by policemen. Suspect’s account Falaseye, the suspect said that lack of funds to pay for his three-year-old baby’s medical bill led him into such dubious acts.

Falaseye, a secondary school drop-out, said: “This is my first time of doing this. I sell shoes and suits and I travel round Nigeria to buy and sell. But business has been bad and I didn’t have anybody to ask for money to foot my three-year-old baby’s hospital bill. 

“So I just figured out that I could meet the girl I have been chatting with and take her phone to sell. Yes I stole her items. “I told her to wait in the bar, while I went to the room, took her items and fled. I sold her phone for N20,000.”

The suspect, according to Lagos State Commissioner for Police, Fatai Owoseni, would be charged to court soon, even as he warned Lagosians to be wary of his likes.

(C) Vanguard Newspaper

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Nigeria naira quoted at 402 per dollar on parallel market

The Nigerian currency was quoted at 402 naira per dollar on the black market on Wednesday, traders said, weaker than 397 it traded at its previous session as dollar shortages gripped the official market.
The naira, which hit fresh record low since the central bank floated the currency on the official interbank market in June, first touched 400 on the black market this month.

On the interbank market on Wednesday, no trades were posted until three minutes before the end of the session, when the central bank which has been reducing its dollar sales, intervened, traders said.
Only three deals worth $0.75 million were traded at 305.50 per dollar, a level the market has closed at since Monday. The naira hit an all-time low of 365.25 per dollar on the interbank on Thursday.

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Nigerian bank execs meet cbank over FX market suspension

Nigerian bank executives met with central bank officials, banking sources told Reuters on Wednesday, a day after the monetary authority suspended nine lenders from foreign exchange transactions for failing to remit money owed to the government.

The suspensions from the interbank market were imposed after the banks failed to remit $2.1 billion, the government's share of dividends from state-owned gas company NLNG, the sources said. They were due to pay the funds into the government account at the central bank.
Investors dumped bank shares on Wednesday while traders said the black market naira sank to a record low of 402 per dollar. .
Last year, President Muhammadu Buhari ordered all state accounts merged into that single account in a bid to reduce corruption.
Bankers told Reuters the central bank wanted the funds remitted in dollars, which are in short supply as Africa's largest economy suffers its worst financial crisis in decades due to a slump in the price of oil, its dominant commodity.
The central bank tightened restrictions on the flow of dollars to domestic lenders in March, forcing the banks to delay hard-currency loan and trade repayments and increasing their risk of default.
One of the nine banks, FCMB, said it was working with the central bank to resolve the issue, which was function of illiquidity in the currency markets and the weak economy rather than willful non-compliance.
A second, UBA, denied it had withheld any government funds.
A third, First Bank, said it remits government funds when due but was discussing with the central bank and state-oil firm on ways of retaining the dollars to help solve forex shortages and meet its obligations.
There was no comment from the other six banks.
There were no trades on the interbank market until three minutes before the end of the session, when the central bank intervened with dollar sales, traders said.
Only three deals worth $0.75 million were traded at 305.50 naira per dollar, the level the market has closed at since Monday.
Traders said the central bank, which has been selling dollars almost daily since it floated the naira in June, had reduced the volumes of dollars it supplied.
Foreign investors - other past suppliers of dollars - have remained on the sidelines during the West African country's financial crisis, making the central bank the main source of hard currency.
On Wednesday, Nigeria's dollar reserves fell 2.5 percent from a month ago to $25.67 billion, its lowest level in more than 11 years, according to central bank figures.
But reserves may be far less when all future dollar commitments are included.
The central bank settled $1.2 billion worth of outright forward contracts it sold in June at 280 per dollar this week. It is due to pay $153 million in futures contract settled in naira on Wednesday.

(C) Reuters News

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Kenyan president approves law capping commercial bank lending rates

Kenya's President Uhuru Kenyatta signed into law on Wednesday a bill capping commercial bank lending rates, saying banks had in the past failed to live up to pledges to lower their rates when parliament tried to introduce caps.

Parliament passed changes to the banking law in early August to cap commercial interest rates at 400 basis points above the central bank's policy rate, now 10.5 percent. The changes had since been awaiting presidential approval.
Businesses in the east African country have complained that high commercial lending rates, which can reach 18 percent or more, hobble corporate investment. Individuals say the high rates put borrowing out of reach of many.
Though the National Treasury and the central bank had opposed caps, they have both urged commercial banks to lower rates, saying they would continue to work with industry players, government and lawmakers to find a solution.
The amended law also sets a minimum interest rate for bank deposits of 70 percent of the central bank's benchmark rate.
Kenyatta said it was the third time parliament had tried to reduce interest rates and that banks had twice promised to lower rates, before reneging.
"In those instances, banks failed to live up to their promises and interest rates have continued to increase along with the spreads between the deposit and lending rates," he said.
The presidency noted difficulties the new legislation might present, including "credit becoming unavailable to some consumers and the possible emergence of unregulated informal and exploitative lending mechanisms."

(C) Reuters News

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Nigeria gets tough with marauding "Sons of the Soil" in search of land to seize

 A year before his wedding, Jude Egharevba was overjoyed when he bought a plot of land to build a house for him and his fiancee on the outskirts of Lagos, Nigeria's commercial capital.
But his joy was short-lived, after a group of young men stormed his land and demanded cash to leave peacefully.

The same men and other gangs visited his land several times and disrupted the building work, forcing Egharevba, an oil and gas executive, to pay them off with one million naira ($3,175) over the course of a year in order to finish the construction.
These men, known as the Omo Onile, which means "Sons of the Soil" in the local Yoruba language, roam Lagos looking for land owners and property developers to dupe and extort for money.
"They milk you at every stage, and beat up your workers if you don't pay," said Egharevba, 28, who had to postpone his wedding due to the constant setbacks to the construction of his house.
The menace of the Omo Onile, whose numbers have swelled in recent years amid rising unemployment in Nigeria, is discouraging investors, hindering businesses and holding back development in Lagos state, government officials say.
Earlier this year, the governor of Lagos, Akinwunmi Ambode, vowed to crack down on those who extort landowners or take over their property, and set up a task force to tackle the problem.
The state's assembly followed his lead, and on Aug. 15 the Lagos State Properties Protection Law was enacted.
The law punishes land theft and a range of related offences with fines and a jail term of between five and 21 years.

"These hoodlums were becoming embarrassing, and were frustrating companies," Akinjide Bakare, chairman of the Omo Onile task force, told the Thomson Reuters Foundation by phone.
"Lagos was losing investments to other states, and the government decided to step in and act," Bakare added.
"SONS OF THE SOIL"
Land disputes and theft have long been a contentious issue in Lagos, and across Nigeria, according to land rights experts.
Dating back to the 1920s, most disputes within society and customary court cases have been about land, said a staff member at the National Archives of Nigeria, who asked to remain anonymous because he was not permitted to speak to the media.
In 1978, Nigeria passed the Land Use Act, which nationalised all land, and was intended to override customary land rights - where people have traditional rights but no legal recognition or protection of their land. This aimed to make land more accessible, improve tenure security, and boost development.
But the act made allocating land discretionary, fuelling state corruption, and contributed to Nigeria's large informal land market, academics and development experts say. "Some Omo Onile believe the land was originally theirs and so act as if government ownership does not count," said Matthew Ottah, a Lagos-based lawyer and also a victim of the Omo Onile.
While there are no estimates of the number of Omo Onile, their ranks are believed to be growing as Nigeria's unemployment rate has reached a seven-year high - 12 percent - and Lagos state's population continues to grow past 20 million people.
Across Lagos, the Omo Onile idle in their communities, often drinking and smoking, but always on the lookout for abandoned projects, land purchases and deals struck by construction firms.
"There are no jobs from the government and vulcaniser (local rubber) work does not pay so this is better than stealing," said Jamiu Alao, a young man who scouts out potential victims for the Omo Onile in Ajah, an area still under development in Lagos.
Some have set up small, bogus offices to bait prospective landowners, sometimes with illegible or misspelt signage and flyers, where they pose as genuine real estate developers.
They issue fake certificates of occupancy, collect money from landlords overseeing renovations, and conspire with some local traditional leaders to fleece property developers.
"Those who have money for land must settle with those who are keeping the land safe," Alao added. "The new people must show respect to the old people - the sons of the soil."
BATTLE FAR FROM OVER
When construction boss Kunle Adigun decided to take on the Omo Onile years ago, and press charges against the intruders, he arrived at his building site to find all his workers had quit.
"Eventually, I had to pay up," the 32-year-old said.
"It is no good arguing with them or bringing police into the matter, because even they want to get money from land deals."
Previously, forcibly entering a person's land or seizing that land was punishable under the Lagos Criminal Law by two years in jail, yet it was rarely enforced, experts say.
Frustrated by the impunity of the Omo Onile, lawyer Ottah, who has been supporting their victims for over a decade, set up a start-up for land verification, identifying "risky lands", detailing a history of land cases, and selling land.
"For unsuspecting buyers, I recommend a trustworthy lawyer, a quantity surveyor ... and prayers," Ottah said with a smile.
The new Properties Protection Law, which criminalises a range of offences from the illegal occupation of property and the use of land agents to selling property without authority, has been hailed by Lagos residents and activists alike.
Yet the battle against the Omo Onile and land theft is far from over, according to Samuel Oloyede, a professor of estate management at Covenant University, just outside of Lagos.
"There is no way to completely eliminate this issue - the land is vast and there are no official records in many cases."
"The new law will minimise disputes because no one wants to go to jail. But it can not stop the problem completely because people will always find a way to cheat the system," he said.

(C) Thomson Reuters Foundation 

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Ghana producer inflation rises to 10.3 percent in July

Ghana's producer price inflation (PPI) rose to 10.3 percent year-on-year in July from 7.6 percent the month before, driven by rising gold prices, the statistics office said on Wednesday.
PPI is a major component of consumer inflation, which has for years remained above government targets. The West African commodity exporter is implementing a three-year aid deal with the International Monetary Fund to restore fiscal balance.

"The rise was mainly influenced by the inflation rate in the mining sector as a result of increases in the price of gold in the world market," government statistician Philomena Nyarko told a news conference in Accra.
Year-on-year producer inflation for utilities for July stood at 36.6 percent, followed by mining and quarrying at 30.4 percent. The manufacturing subsector was at 1.0 percent, Nyarko said.
The government said last week Ghana is on target to halve its fiscal deficit this year as a result of the $918-million IMF deal, in comments apparently designed to allay uncertainty after parliament rejected one of its key components.

(C) Reuters News

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Investors dump shares of Nigerian banks after FX trade suspension

Investors sold shares in Nigerian banks on Wednesday, a day after the central bank suspended nine lenders from foreign exchange transactions for failing to remit money owed to the government.
The central bank suspended FCMB, First Bank, United Bank for Africa (UBA), Heritage Bank, Keystone Bank, Skye Bank, Diamond Bank, Sterling Bank, and Fidelity Bank on Tuesday for withholding government dollars from the national treasury, banking sources said.

Shares in Diamond Bank fell the most, shedding 7.32 percent in early trade, followed by Sterling bank which was down 3.88 percent. FCMB fell 2.5 percent, FBN Holdings shed 1.5 percent, while Skye Bank was down 1.54 percent.
According to the central bank, the banks had failed to remit $2.1 billion, which was the government's share of dividends from the state-owned gas company NLNG. The banks were supposed to pay the money into the government's account at the central bank.
Last year, President Muhammadu Buhari ordered government payments to be made into one single central bank account as part of his pledge to fight graft.
UBA denied late on Tuesday that it had withheld any government funds.
"We wish to state very categorically that UBA has completely remitted all NNPC/NLNG dollar deposits," Charles Aigbe, the bank's spokesman said in an email.
FCMB has said it was working with the central bank to solve the issue, while the other banks either had no immediate comment or were not reachable for comment.
The suspensions came after the central bank tightened restrictions on the flow of dollars to domestic lenders in March. That has forced banks to delay hard-currency loans and trade repayments and increased their risk of default Nigeria, Africa's largest economy, is suffering its worst financial crisis in decades as a slump in oil revenues hammers public finances and the naira. The central bank governor has said a recession is likely.
The bank floated the currency in June to attract investment, allowing the naira to fall by 40 percent against the dollar. But foreign investors have remained on the sidelines, making the central bank the main supplier of dollars.
The naira traded at 305.50 to the dollar after the central bank intervened shortly before the close of the market, the same level it closed on Tuesday.

(C) Reuters News

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Nigeria central bank suspends first Bank, UBA, Fidelity, 6 others from FX market,

Nigeria's central bank has suspended nine banks from the interbank currency market for failing to remit money owed to the government, banking sources told Reuters on Tuesday.
The suspension comes after the central bank tightened restrictions on the flow of dollars to domestic lenders in March. That has forced the banks to delay hard-currency loan and trade repayments and increased their risk of default.

"This is really a function of the dire macroeconomic situation and illiquidity in the FX markets rather than willful non-compliance by banks," said Diran Olojo, a spokesman for FCMB, one of the banks.
Olojo said the bank was working with the central bank to resolve the issue.
A statement by United bank for Africa (UBA) says the bank had remitted all forex belonging to state-oil firm and gas firm to the government.
"We wish to state very categorically that UBA has completely remitted all NNPC/NLNG dollar deposits," UBA spokes person Charles Aigbe said in an email.The banks have failed to remit $2.1 billion, the government's share of dividends from the state-owned gas company, NLNG. The banks were supposed to pay the money into the government's account at the central bank.
Last year, President Muhammadu Buhari ordered the merger of state accounts into that one account at the central bank to reduce corruption.
In addition to FCMB, the banks are First Bank, United Bank for Africa (UBA), Heritage Bank, Keystone Bank, Skye Bank, Diamond Bank, Sterling Bank and Fidelity Bank, banking sources say.
"We could not trade today," one banker said. "The suspension is meant to pass on the pressure to banks to make payments (but) this is foreign currency and we have to source the dollars."
Nigeria, Africa's largest economy, is suffering its worst financial crisis in decades as a slump in oil revenues hammers public finances and the naira. The central bank governor has said recession is likely.
The bank floated the currency in June to attract investment, allowing the naira to fall by 40 percent against the dollar. But foreign investors have remained on the sidelines, making the central bank the main supplier of dollars.
Some lenders were trying to sell assets to pay the funds, another banker said, adding that the central bank was aware of refinancing challenges facing the industry.
A director at one of the affected lenders said his bank informed all board members of the suspension via a letter on Tuesday, adding it held $125 million of the total sum.
The central bank has been selling dollars almost daily to boost interbank trading and liquidity. But it reduced its sales volume this week, traders said, after it settled two-month outright forwards it sold in June.
The regulator paid $1.2 billion for currency forwards it sold in June at 280 per dollar, the bankers said, further draining its dollar reserves. Those reserves are down to $25.7 billion, their lowest in more than 11 years.
The naira, which hit a record low of 365.25 per dollar on Thursday, closed flat at 305.50 on Tuesday, gaining ground after the central bank sold dollars.

(C) Reuters News

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Nigeria’s First Bank gets new CFO

Nigeria First Bank has appointed Patrick Iyamabo as its new chief financial officer (CFO), to replace its current chief executive Kazeem Adeduntan who was moved up this year.

According to a statement by the bank Iyamabo will be assuming the CFO role which was hitherto held by Adeduntan before his appointment as the Managing Director of the Bank.
The new CFO has over 20 years’ extensive experience spanning across various industries both within and outside the country and has cross-functional exposures covering areas such as Audit, Strategic Management, Mergers & Acquisition (M&A) and Finance.
Until his appointment, Iyamabo served as the CFO for the FCMB Group with oversight responsibility for Accounting & Finance, Capital and Liquidity Management, Mergers & Acquisition, Portfolio Management and Investor Relations.
He also led the restructuring and merger of FinBank Plc into FCMB in 2012.

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Nigeria plans $7.2 bln investment in power generation in 5-year

Nigeria plans to invest $1.5 billion in the next five years to boost power generation and increase capacity from the current 5,000 Mega Watts to 11,500 Mega watts; however the total cost of the project is put at $7.5 billion by the Transmission Company of Nigeria (TCN).
Breakdown of funding for the project include, a concessionary loans and grant of $3.4 billion from TCN’s support international finance agencies, $1.5 billion from Nigerian government, while the financing initiatives of TCN were expected to contribute $2.6 billion.

Managing Director of TCN, Abubakar Atiku told a press conference part of the strategic plan was to boost its transmission capability to 8,200MW by the end of 2018, to ensure steady power supply.
This he said would be realised by completing eight of its new projects in 2018. He said that the ultimate expansion programme was designed to ensure the completion of 59 projects by 2019 in line with the envisaged Federal Government’s realisation of 10,000MW.
Atiku said that the completion of the projects would eventually lead to a total transmission capacity of 11,500MW. He explained that the five-year plan had also been carefully developed with the overall aim of realising an uninterrupted power supply with the realisation of 20,000 MW by 2022.
Atiku said that to key in to the incremental power plan by Nigerian government, TCN had planned to realise the completion of 22 critical projects captured in the 2016 Budget. He said that TCN had increased its present transmission capacity from 5,500MW to 6,00MW, adding that efforts were on to increase the wheeling capacity to 7,500MW with the completion of 31 projects by 2017.
He said that TCN had restored unavailable service equipment to boost and strengthen the national grid. According to him, with the restoration of critical equipment hitherto neglected by the previous management, the transmission system has been relatively stable with zero system collapse.
The MD said that TCN was focused at ensuring that no power was left stranded in the generating stations, adding that efforts were being intensified to ensure stability of the national grid. He said this was being archived through the introduction of changes in TCN’s operational ways of conducting business.

(C) Nigeria Electricity Hub

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Shoprite profit rises as Africa keeps buying despite commodity crunch

Africa's largest retailer Shoprite Holdings reported a 17 percent jump in full-year profit on Tuesday, shrugging off competition in South Africa and buoyed by strong sales in Angola.
Its thrifty stores helped itsecure a South African market share of 32.8 percent in June, a company record, Chief Executive Whitey Basson said, as the chain kept costs tight and subsidised certain basic foodstuffs to keep the business of cash-strapped consumers.

Africa's most advanced economy, which accounts for four fifths of the company's sales, is forecast by the central bank to show zero growth this year, but Basson still sees room for growth for the company.
"We are not worried about the South African market maturing," he said in a webcast after pointing out that Shoprite had opened a net 49 stores in 2016 in its home market and was planning to open another 111 over the next two years.
The retailer trades in 14 other countries on the continent, and, despite weaker economic growth due to lower commodity prices, sales in this segment expanded by 32.6 percent compared with 10.9 percent at home.
Africa's two largest oil producers, Angola and Nigeria, were hit by foreign exchange shortages as earnings from crude sales collapsed.
But Shoprite's Angolan business produced its sharpest growth, as the retailer was able to replenish goods while other retailers were hamstrung b

y foreign exchange rules.
"Access to dollars allowed us to have stock on the shelves," said Basson, adding that the local currency was reinvested and the excess profits in Angola had paid for new store openings.
Shoprite's total number of supermarkets outside South Africa grew to 207, with most of the 22 new stores opened in Angola, Zambia and Nigeria, Shoprite said.
The firm's diluted headline earnings per share for the 53 weeks to end-June rose 17 percent to 899.7 cents from 769.1 cents.
Headline earnings per share is the main profit measure in South Africa which strips out certain one-off items.
Shares in Shoprite were up 1 percent to 201 rand by 1213 GMT, 5 percent below the all-time high of 211.76 rand scaled on August 10.

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Nigeria asks banks to give 60 pct of their forex to manufacturing firms

Nigeria's central bank has asked commercial lenders to allocate 60 percent of their foreign exchange purchases to manufacturers, in a bid to boost their ability to pay for imports and boost the economy.
Widespread dollar shortages, caused by a fall in oil revenues, have hit manufacturers' ability to import raw materials and spare parts, forcing many plants to close.

The central bank said in a circular it wanted to encourage the production of local goods by asking banks to allocate more hard currency to industrial firms.
"Authorised dealers (banks) are hereby directed to dedicate at least 60 percent of their total foreign exchanger purchases from all sources to end-users strictly for the purposes of importation of raw materials, plant and machinery," the bank said in a circular dated Aug 22 and seen by Reuters on Tuesday.
In June, the bank abandoned its naira peg to the dollar, allowing the currency to weaken by 40 percent in a bid to attract more foreign investment.
But so far trading in the official foreign exchange market has been limited as those with dollars prefer to sell them for a higher rate on the black market.
Nigeria's economy contracted in the first quarter and officials have said recession is likely.

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Nigeria's naira gains 0.8 pct after cenbank dollar sales

Nigeria's naira closed firmer on the interbank market on Monday after the central bank sold dollars to some commercial lenders towards the end of a session that featured no trades in the first four hours, traders said.

The naira closed at 305.50 to the dollar, 0.81 percent firmer than its Friday close.
Traders said the central bank selectively sold dollars to commercial lenders just before the market close.
"The central bank came to the market toward the close, and sold dollars to only few banks, which helped to support the naira," a trader said.
The central bank has been selling dollars almost daily to boost liquidity and support the naira.

Nigeria's currency closed braodly flat on the parallel market at 396 to the dollar against 397 a dollar closed on Friday.

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Nigeria president seeks emergency powers to revive economy - source

As Nigeria’s economic woes bites harder, president of Africa’s biggest crude producer Muhammadu Buhari plans to ask the country’s parliament for extra powers for one year allowing him to take "emergency" decisions to revive the flagging economy, a government source said on Monday.
Africa's biggest economy contracted in the first quarter and government officials have said recession is likely as vital oil revenues have crashed due to low crude prices. GDP data for the second quarter is due this week.

The government put together a bill titled "Emergency Economic Stabilisation" giving Buhari extra powers such as amending laws which will be submitted to parliament, the source said.
Buhari was seeking to accelerate plans to improve the investment climate, the source said. The bill would allow him for example to ease visa restrictions for investors and give them incentives, plans that have been delayed.
In June, the central bank floated the naira, allowing the currency to devalue by around 40 percent to attract investment and ease hard currency shortages.
On Friday, Finance Minister Kemi Adeosun said Nigeria is to allocate 60 billion naira ($182 million) more spending on capital projects as part of the 2016 budget, coming on top of 400 billion already spent.
But critics of Buhari says the government has not done enough to end Nigeria's worst economic crisis for decades. Tens of thousands of workers have been laid off, while companies across sectors say they cannot get enough hard currency to import spare parts or raw materials.
There was no immediate reaction from the two chambers of parliament which is currently in recess.

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South Africa Sun Hotel to exit Nigeria on economic woes

Hotel and gaming group Sun International has become the latest South African business to pull out of Nigeria because of weak economic growth and clashes with regulators and shareholders in the West African country.
In January, Nigeria's Economic and Financial Crimes Commission (EFCC) launched a probe into Sun International's initial investment in the Tourist Company of Nigeria (TCN) which owns and operates the 5-star Federal Palace Hotel in Lagos. 

Sun International, which also reported on Monday a 20 percent fall in diluted adjusted headline earnings per share (AHEPS) to 628 cents for the year to June, said The Federal Palace had been hit by slow economic growth, low oil prices, the threat from militant group Boko Haram and a weakening naira.
"The board has decided to exit Nigeria and steps will be taken to achieve this in a manner that does not erode further value," the company said in a statement.
"Continued setbacks in Nigeria as well as the ongoing shareholder dispute have frustrated all attempts to develop and improve the property," it added.
Sun International bought a 49 percent stake of the Nigerian Stock Exchange-listed TCN in 2006, becoming the largest single shareholder. In recent years, Sun has been drawn into a dispute within its fellow shareholder, the Ibru family.
The company's decision to exit Nigeria follows food and clothing retailer Woolworths and Tiger Brands, which sold its loss-making Nigerian arm to Dangote Industries.
Nigeria, Africa's largest economy, is suffering its worst financial crisis in decades as a slump in oil revenues hammers public finances and the naira. The central bank governor has said recession is likely.
Analysts said Sun International's dispute with fellow investors was at least as important in its decision to leave.
"They are in a way stuck in a problematic arrangement on the property and it's been very difficult for them to create value there. It certainly makes sense for them to reduce exposure to Nigeria," said Avior Capital Markets analyst De Wet Schutte.
"Nigeria is a difficult place to build a business."
CEO Graeme Stephens said the exit could take a year or two, and the company was no longer committed to expanding in Africa.
"We've been strategically exiting Africa for a couple of years and what was left was Nigeria. We're not looking anywhere else in Africa," Stephens told Reuters, adding the company would focus on growing its Latin America business.
In June, Sun said it was disposing its remaining minority interests in Zambia, Botswana, Namibia, Lesotho and Swaziland to Minor International Public Company
Shares in Sun International were down 0.47 percent by 1139 GMT.
Reporting its results, the company said poor economic conditions in South Africa resulted in revenue growth at casinos of only 0.8 percent to 7 billion rand ($515 million).
"In South Africa, the economic environment remains a serious concern. We do not anticipate any meaningful growth in gaming revenue until there is a recovery in the economy and renewed consumer confidence," Stephens said.
The South African Reserve Bank expects the economy to flatline this year, due to a drought and falling commodity prices.

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Nigeria plans housing projects targeted at low, medium earners

Nigeria plans to construct housing for low and middle income earners as part of strategies to reduce shortage of accommodation in the Africa’s most populous country, using a nationally acceptable design that reflects diversity of culture and weather in the country.
Babatunde Fashola, minister in charge of housing, while unveiling what he described as a roadmap for housing in the West African country noted that the project with targeting the low and medium income earners.

The minister said aside evolving nationally acceptable designs that respond to and accommodate the country’s diversity, the roadmap also involves standardizing the design towards mass production.
According to the Minister, the process also involves standardizing fittings towards reenergizing local supply chain and economic diversification through Small and Medium businesses adding that this would lead to industrialization of construction which would, in turn help to reduce delivery time from the estimated 18 months to about six months for a standard flat.
He said the deficiency in housing was largely due to the fact that the cost of building was high leading to high cost of both purchase and rent, Fashola said the present roadmap targets the low and medium income earners who, according to him, are first time home owners
The Minister said aside certifying and accrediting Developers from the Private Sector, the roadmap was aimed at proving the workability and national acceptability of the new concept which, according to him, would be supported through Government funding in the “Short Term”.
Describing 100 per cent home ownership by the population of any country as utopian, Fashola declared. “The truth, which we must accept, is that 100 percent home ownership is an ideal, but the reality is that, best practices in places like the UK and Singapore are stories of a mixture of ownership and rental”.
“Success is defined and measured by the increasing number of tenants who become owners and not by the attainment of 100% home ownership because owners today may become tenants tomorrow if they fall on hard economic times, just as tenants today may become owners in a season of prosperity”, he said.
The Minister, who said his thoughts were directed on how to gradually and consistently increase the number of tenants who become owners, with a focus on first-time owners, said that the only way to achieve the thought was through mortgage, adding that the present system whereby people who earn their salary monthly were made to pay rent in advance was abnormal.
“It reinforces the need for a credit system in our real estate sector, where payments for rent are matched not only to the quantum but also the timing of income”, he said adding that people who get paid weekly, monthly or yearly, should pay their rent weekly, monthly or yearly.
According to the Minister, aside relieving a lot of pressure on ordinary working people, it would “allow increased occupancy of many flats that are now empty across our country because people cannot pay multiple year advance rent from weekly or monthly incomes received in arrears”.
Again reinforcing the need for mortgage financing as a means to increase the rate of home ownership in the country, Fashola added that it would both reduce the frustrations of landlords who depend on their houses for income and who are saddled with defaulting tenants on one hand; and the trauma of families with children who are unsure when they will be thrown on the streets on the other hand.
Unfolding the concept, the Minister, who announced the conclusion of “the nationally acceptable designs that respond to and accommodate our diversity”, said the Ministry was able to reduce the myriads of designs from across the country to 21 from which it worked down to 12 and finally to six different designs.
He gave the summary of the designs to include 1,2 and 3 Bedroom bungalows, with court yards, that respond to the climate situation and cultural leanings of the North, to be built in states in the North East, North West and North Central parts of Nigeria and blocks of 16 and 24 flats of 1,2 and 3 bedrooms and Bungalows of 1 and 2 bedrooms to be built in the South-South, South-East and South-West of Nigeria and the FCT.
“These are broad classifications without details of special adaptations to be made in some states, based on our research and the experience of our diverse team of architects in the Ministry who come from all parts of Nigeria”, he said adding that the designs did not contemplate those who wanted duplexes or bigger houses.

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Nigerian interbank rate soars as naira shortage bites

Nigeria's overnight naira interbank lending rate stayed ultra-high on Friday, quadrupling from 6.26 percent since Wednesday as the central bank took steps in the debt and currency markets to try to prop up the ailing local currency.

The naira hit all-time low of 353.75 to the dollar on Thursday.
The central bank sold dollars on Thursday and Friday, traders said. It also sold about 236 billion naira ($776 million) of open market operations (OMO) treasury bills on Thursday, which sent the banking system into a deficit of around 39 billion naira on Friday.
"Liquidity has been tight because of the successful mopping up exercise by the central bank, which sent the market into repo" one dealer said.
Those combined operations pushed the naira up 5.2 percent to 308 per dollar, but also sent the overnight interbank rate soaring to 25 percent on Friday, having hit 22 percent the previous day.
Traders said the central bank also debited commercial lenders accounts for the purchases of bonds and primary market treasury bills auctioned on Wednesday, which added to the shortage of naira in the market.
Traders said interbank rates should ease by next week when part of July's budget allocation should enter the banking system.
Nigeria distributes revenue from crude exports every month among its 36 states, and local and federal administrations.

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