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Experts Outline Ways to Economic Recovery



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Economic and financial experts have said that a policy and cultural change, fiscal discipline, high ethical and professional standard will enhance economic recovery in the country.

They spoke at the 2016 Lagos Bankers’ Nite organised by the Chartered Institute of Bankers of Nigeria Lagos State Branch.

The guest speaker at the event, Dr. Biodun Adedipe, recalled that the Nigerian economy had experienced growth that raised the Gross Domestic Product from $4.196bn in 1960 to $481.066bn in 2015, ranking the nation as the 24th largest economy in the world.

The economist explained that urgent steps must be taken to stop the Nigerian economy from going into depression.

Adedipe, whose speech focused on the theme of the event, ‘Repowering Nigerian economy: the strategic imperatives,’ said, “The economy degenerated progressively on the penchant for imports and tepid domestic production activities.

“The naira had remained strong without pedro-dollars, ranging between 61 kobo to 70 kobo to the United States dollar, because of rising industry capacity utilisation, a robust agricultural sector and viable balance of payments.

“The momentary appreciation of the of the naira from 1978 to 1980 was petro-dollar driven and gave way to the seemingly irreversible, gradual but steady decline since 1986. Our orientation towards consumption and the penchant for foreign commodities has to change.”

Citing the examples of Indonesia and Malaysia that have made palm oil a major foreign exchange earner, the guest speaker stressed the need for a clear economic direction for the country.

“We should be specific as to which aspect will take most of our efforts and resources rather than pursuing many sectors simultaneously,” he added.

The President/Chairman of Council, CIBN, Prof. Segun Ajibola, noted that high ethical and professional standard was critical to achieving the desired result of repowering the economy.

He submitted that the economic crisis was caused by a fall in global oil prices coupled with fiscal indiscipline and policy summersaults.

The host and Chairman, CIBN, Lagos State Branch, Mrs. Taiwo Ige, said the annual event had evolved and become a forum where bankers and stakeholders meet to deliberate on contemporary issues affecting the banking sub-sector and the economy as a whole.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd




The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins



Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020




Revenue of OPEC Members to Drop to 18 Year Low in 2020

The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.

EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.

If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.

The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.

It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.

It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.

“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”

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