Nigerian authorities said today the country will not cut oil production even as nosediving crude prices caused by a global supply glut ravage revenue.
US crude oil prices tumbled to a 12-year low yesterday, prompting OPEC member Nigeria to call for an emergency meeting to address collapsing prices that have drained the coffers of Africa’s largest economy.
Nigeria’s junior oil minister Emmanuel Ibe Kachikwu said in Abu Dhabi he expected an extraordinary meeting of the global oil cartel in “early March” to discuss the continued plunge in prices.
But until the meeting is formally confirmed, Nigeria can do little in response to the collapsing price of crude, said Nigerian National Petroleum Corporation (NNPC) marketing head Mele Kolo Kyari.
“Nigeria cannot stop the prices of crude from going down,” he told AFP in Abuja.
“The easiest thing to do is to control production but Nigeria can only do that through the OPEC framework and the last OPEC meeting did not agree to cut down production.
“So influencing the price through production is now out of the question.”
Saudi-led Gulf exporters within the Organization of the Petroleum Exporting Countries (OPEC) have so far refused to cut production to curb sliding prices, seeking to protect their market share despite a heavy blow to their revenues.
Nigeria, Africa’s number one producer, has been ravaged by the slump, with crude accounting for 90 percent of the nation’s export earnings and 70 per cent of overall government revenue.
Remittance to Nigeria, Other African Countries Hits $53bn in 2022
Remittance to Sub-Sahara Africa rose to $53 billion in this year
The World Bank report has indicated that remittance to Nigeria and other countries in Sub-Sahara Africa has reached $53 billion in 2022. This represents an increase of 5.2 percent when compared with 2021.
Investors King understands that remittances into Nigeria and Kenya constitute a significant percentage of all the remittances into the African Sub-Sahara region.
“Remittances to Sub-Saharan Africa, the region most highly exposed to the effects of the global crisis, grew an estimated 5.2 percent to $53 billion in 2022, compared with 16.4 percent last year (due mainly to strong flows to Nigeria and Kenya),” the report stated.
According to the World Bank report on Migration and Development, prepared by the bank’s Migration and Remittances Unit and Development Economy, remittance has constituted an important part of the Gross Domestic Product (GDP) for a number of African countries.
For example, Remittances as a share of GDP in the Gambia is 28 percent while it stood at 21 percent in Lesotho, the report noted.
The report added that remittances are an important source of household income for most Low and Middle-Income Countries (LMICs). Through remittances, most of the households in the LMICSs have been able to survive harsh economic conditions such as the Covid-19 pandemic.
“Remittances are a vital source of household income for LMICs. They alleviate poverty, improve nutritional outcomes, and are associated with increased birth weight and higher school enrollment rates for children in disadvantaged households”.
The World Bank noted that although the rising price of goods has adversely affected migrant incomes, the reopening of the economy and international borders has led to the increase of remittance inflow into Sub Sahara Africa.
Meanwhile, the global bank acknowledges that countries that witnessed scarcity of foreign exchange rates or multiple exchange rates officially recorded a decline in remittances inflow as migrants shift to alternative channels which promise better rates.
The report noted that sending funds back home from some countries in Europe and America could attract a transaction fee that is as high as 7.8 percent on average.
Insider Dealing: Hafiz Mohammed Bashir Acquires 37 Million Shares in Unity Bank
Alhaji Bashir carried out the acquisition in 32 different transactions at an average price of N0.51 a unit between November 8th and 11th 2022
The management of Unity Bank Plc has announced that a non-Executive Director, Hafiz Mohammed Bashir scooped 37,681,947 shares of the bank.
The transaction was disclosed in a statement signed by the bank’s secretary, Alaba Williams.
Alhaji Bashir carried out the acquisition in 32 different transactions at an average price of N0.51 a unit between November 8th and 11th 2022, according to the disclosure available on the Nigerian Exchange Limited (NGX).
Insider dealing is the buying or selling of a company’s shares by someone with a piece of insider information not available to the public. Insider dealing is illegal in the U.S. but not in Nigeria as long as it’s disclosed.
The Nigerian Security and Exchange Commission (SEC) mandated all listed companies to disclose insider trading to enforce transparency across the nation’s Exchange market.
Also, insider dealings can help stakeholders and retail investors assess the confidence of top company executives in a listed company. While Alhaji Bashir’s acquisition could demonstrate his trust in the future of the company, it could also mean positioning ahead of a major company’s event given his position.
Hafiz Mohammed Bashir Profile
In 2017, Hafiz Mohammed Bashir was appointed as a Non-executive Director following the Central Bank of Nigeria’s approval.
Hafiz Mohammed Bashir is an accomplished professional with vast experience in the public and private sectors. He retired at the apex of Local Government Administration in Katsina State in 1992 and has chaired the Board of many companies – including Fiztom International Ltd, HafadGlobal Resources limited and Fiziks Nigeria limited.
Alh. Hafiz who is currently in private business holds a Post Graduate Diploma in Management from Abubakar Tafawa BalewaUniversity, Bauchi, and an Advance Diploma in Public Administration from the University of Jos, a higher Diploma in Local Government Administration- AhmaduBello University. Zaria and Diploma in Insurance from ABU, Zaria He is also currently undergoing a Master’s programme in Business Administration at the Business School of the Netherlands.
See the details of the transactions below.
Lagos Chamber of Commerce Advised FG on Borrowing, Proffer Solutions to Foreign Exchange Crises
LCCI lamented that additional borrowings will further increase Nigeria’s debt-servicing bill
The Lagos Chamber of Commerce and Industry ( LCCI) has advised the Federal Government to explore alternative ways to finance the deficit in the 2023 budget proposal. LCCI lamented that additional borrowings will further increase Nigeria’s debt-servicing bill.
Investors King understands that the 2023 budget proposal as submitted to the National Assembly by the president has a deficit of N10.78 trillion.
Speaking at the organisation’s 134th Annual General Meeting (AGM) held in Lagos, LCCI President, Dr Olawale Cole, stated that although the chamber does not totally frown at the budget deficits, the chamber, however, is not disposed to issuing new commercial loans as well as bilateral and multilateral loans to finance the deficit.
Dr. Olawale added that while President Buhari alongside other African presidents is seeking debt cancelation from international creditors, the presidents across the African continent keep piling up debts.
“The world is a bit confused at our president’s well-publicized call for debt cancellation at the last United Nations General Assembly,” he noted.
Speaking further on the danger of the country’s incessant borrowing, Olawale said “the borrowings are significantly increasing, and Nigeria is struggling to service these debts due to revenue mobilisation challenges and an increased fuel subsidy burden”.
“The International Monetary Fund (IMF) has warned that debt servicing may gulp 100 percent of the federal government’s revenue by 2026 if the government fails to implement adequate measures to improve revenue generation,” he lamented.
Similarly, the LCCI president also spoke on the foreign exchange challenges in Nigeria. He noted that the major cause of the fall in naira is a result of the drop in oil output and weak production amid increased demand for foreign currency.
“The real solution to our forex scarcity crises is to boost production and expand exports. We must also resolve the crises around oil production, as 80 percent of forex earnings come from oil and gas exports,” he said.
Airtel Africa Receives $194 Million Loan Facility From IFC
FirstBank, Others Partner With Junior Achievement on Africa’s Largest High School Entrepreneurship Competition
Property Tech Company, VENCO Secures $670,000 Pre-Seed Funding
News4 weeks ago
Npower News: What You Need to Know Before Taking ‘Work Nation’ Eligibility Test
News3 weeks ago
Npower News: NASIMS Announced “Work Nation’s” Minimum Cut-Off Mark
Travel2 weeks ago
Nigerians Eligible For Residence Permit in Norway
News2 weeks ago
Npower News: Latest Update On Npower Payment for Beneficiaries
News4 weeks ago
Npower News: NASIM Provides Requirements Resolution For Failed August Stipend
Blockchain4 weeks ago
FG to Train 30,000 Nigerians on Blockchain Technology; Released Link For Registration
Travel1 week ago
Passengers Groan as Air Tickets Increase by More than 100%
News3 weeks ago
Npower Clarifies “Work Nation” Programme, State It is Optional