Connect with us


Non-Oil Sector Growth Drops to -0.36%



Non oil

Amidst efforts by the Federal Government to diversify the economy from oil, the prospects of earning revenue from the non-oil sector are fast fading, owing to the dismal performance of the sector.

Data from Bloomberg showed that all activities in the non-oil sector recorded varying degrees of declining growth relative to real Gross Domestic Product in the first quarter of 2016.

Specifically, the data indicated that the sector dropped from 2.11 per cent in the fourth quarter of 2015 to -0.36 per cent in the first quarter of 2016.

A further breakdown of the figure showed that in the agriculture, forestry and fishing sub sector, crop production dropped from 3.3 per cent in the Q4, 2015 to three per cent in the Q1 2016; livestock was 5.6 per cent in the Q4 2015, it dropped to 3.9 per cent in the Q1 2016. Forestry fell from four per cent in the Q4 2015 to 2.3 per cent in the Q1 2016. Fishing was 5.4 per cent in the Q4 2015, it dropped to 3.3 per cent in the Q1 2016.

The mining and quarrying, crude petroleum and natural gas sector had a negative decline of -8.3 per cent in the fourth quarter of 2015; it improved slightly to -1.9 per cent in the first quarter of 2016.

In the sector, coal mining reduced from 7.7 per cent in the Q4 2015 to 3.3 per cent in the Q1 2016. Metal ores increased from 6.9 per cent to 57 per cent while quarrying and other minerals, which stood at 5.6 per cent in the Q4 2015, recorded a negative (-88.9 per cent) in the Q1 2016.

In the manufacturing sector, oil refining maintained a negative of -22.6 per cent in the Q1 2016, the same figure that was recorded for the Q4 2015.

Cement, which witnessed huge growth last year, dropped sharply from a high of 21.3 per cent in the Q4 2015 to a negative of -4.4 per cent in the Q1 2016.

Food, Beverage and Tobacco sector increased in negative growth from -5.6 per cent in the Q4 2015 to -11.1 in the Q1 2016. Textile and apparel, which recorded 2.8 per cent growth in the Q4 2015, declined to -3 per cent.

Chemical and pharmaceutical products declined from 17.2 per cent in the Q4 2015 to 5.9 per cent in the Q1 2016; non-metallic mineral products dipped from 12.7 per cent in the Q4 2015 to 5.5 per cent in the Q1 2016; plastic and rubber products also plummeted from 15.7 per cent in Q4 2015 to 4.8 per cent in Q1 2016.

Wholesale and retail trade also witnessed a decline from 4.7 per cent in the Q4 2015 to two per cent in the Q1 2016.

In general, real GDP growth of the manufacturing sector slowed by 8.39 per cent in the Q1 2016 according to the National Bureau of Statistics.

The report added that nominal GDP growth of manufacturing in the Q1 2016 slowed by 2.98 per cent (year-on-year), representing 4.23 per cent points lower from growth recorded in the Q1 2015 and 9.91 per cent points lower from growth in the Q4 2015 as a result of slower growth in 10 of 13 activities in the sector.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading


No Plan to Increase Fuel Price; Says FG



NNPC - Investors King

The Federal Government has stated that it has no plan to increase fuel price during the yuletide period.

This assurance is coming amid the nationwide fuel scarcity which has pushed the price of petrol above N250 in many retail stations.

Investors King learnt that fuel is being held for N250 per litre in Abuja and several other cities across the country while black marketers are charging between N400 and N450 per litre.

The scarcity and the high price of fuel are however becoming unbearable for many Nigerians, especially those who have reasons to embark on business travel for the December festivals.

According to the National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Ukadike Chinedu, most of the association members, who owned the bulk of the filling stations across the country, were now subjected to purchasing PMS at about N220/litre, which was why many outlets currently dispensed at about N250/litre and above.

He noted that the cost of the commodity has been on the rise due to its unavailability and other concerns in the sector. 

He added that the price of fuel could be sold from N350/litre to N400/litre before the end of the year. 

Meanwhile, a number of senior officials at the NNPC had stated that the subsidy was becoming too burdensome on the national oil company, as this was another reason for the scarcity of PMS.

According to a source who is familiar with the development as reported by Punch News, “How can we continue to import 60 million litres of petrol daily and keep subsidising it, while millions of litres are either diverted or cannot be accounted for? The burden is too much, as you rightly captured in that story”. 

Investors King understands that NNPC is the sole importer of petroleum into the country and it pays billions of naira every month to subsidise the product to N147 per litre. 

Reuters News reported that in August 2022, NNPC paid more than $1 billion as fuel subsidy while the federal government earmarked N3.6 trillion as fuel subsidy in the 2023 budget proposal. 

Continue Reading


Fuel Scarcity: NNPC Declares 2billion Liters in Stock, Blames Scarcity on Road Construction

NNPC Claimed it as 2 billion litres of fuel despite scarcity



Petrol - Investors King

The Nigerian National Petroleum Company (NNPC) has blamed the recent fuel scarcity on road construction around Apapa, noting that the corporation has about 2 billion litres of fuel in stock. 

According to a statement issued by NNPC Executive Vice President, Downstream, Mr Adeyemi Adetunji, the Nigeria National Petroleum Company has about 2 billion litres of fuel which can last the country conveniently for more than 30 days. 

The Executive Vice President further blamed the queues on the road construction around Apapa axis which has slowed down the movement of oil trucks to several parts of the country. 

“The recent queues in Lagos are largely due to ongoing road infrastructure projects around Apapa and access road challenges in Lagos” he said. 

He however noted that more filling stations should have Premium Motor Spirit (PMS) otherwise known as petrol with the ease in gridlock along the apapa axis. 

“The gridlock is easing out and NNPC Ltd has programmed vessels and trucks to unconstrained depots and massive load outs from depots to states are closely monitored,” he said.

Investors King gathered that several states including Abuja have been impacted by the supply chain difficulty caused by the construction around Apapa. 

The scarcity of fuel has therefore led to the hike in price. In most places across the country, fuel is sold as high as N250 per litre. Several fuel stations are already taking advantage of the situation coupled with the increase in the movement of people and goods owing to the December festivals.

Speaking further, Adeyemi noted that the situation will soon be back to normalcy as NNPC is taking measures to address the situation. 

“We want to reassure Nigerians that NNPC has sufficient products and we significantly increased product loading in selected depots and extended hours at strategic stations to ensure sufficiency nationwide.

“We are also working with industry stakeholders to ensure normalcy is returned as soon as possible,” he concluded. 

Continue Reading


Global Growth to Drop Below 2% in 2023, Says Citi



GDP Growth- Investors King

Citigroup on Wednesday forecast global growth to slow to below 2% next year, echoing similar projections by major financial institutions such as Goldman Sachs, Barclays, and J.P. Morgan.

Strategists at the brokerage cited continued challenges from the COVID-19 pandemic and the Russia-Ukraine war — which skyrocketed inflation to decades-high levels and triggered aggressive policy tightening — as reasons behind the outlook.

“We see global performance as likely (being) plagued by ‘rolling’ country-level recessions through the year ahead,” said Citi strategists, led by Nathan Sheets.

While the Wall-Street investment bank expects the U.S. economy to grow 1.9% this year, it is seen more than halving to 0.7% in 2023.

It expects year-on-year U.S. inflation at 4.8% next year, with the U.S. Federal Reserve’s terminal rate seen between 5.25% and 5.5%.

Among other geographies, Citi sees the UK and euro area falling into recession by the end of this year, as both economies face the heat of energy constraints on supply and demand front, along with tighter monetary and fiscal policies.

For 2023, Citi projects UK and euro area to contract 1.5% and 0.4%, respectively.

In China, the brokerage expects the government to soften its zero-COVID policy, which is seen driving a 5.6% growth in gross domestic product next year.

Emerging markets, meanwhile, are seen growing 3.7%, with India’s 5.7% growth — slower than this year’s 6.7% prediction — seen leading among major economies.

Continue Reading