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Economy

Capital Inflows Into Nigeria Fall by 46.86%

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Dollar
  • Capital Inflows Into Nigeria Fall by 46.86%

The total capital importation into Nigeria declined by 46.86 per cent (year-on-year) from $9.6bn in 2015 to $5.1bn in 2016.

The total capital importation for Q4 2016 was estimated at $1.55bn, compared to $1.82bn in Q3 2016.

Loans (other investments), according to a report by Meristem Research, constituted majority (44 per cent) of capital inflows during the period ($2.24bn in 2016 as against $1.66bn in 2015), while Foreign Direct Investment and Foreign Portfolio Investment into equities amounted to 20 per cent ($1.04bn) and 17 per cent ($859.05m) of inflows accordingly.

On the other hand, currency deposits, trade credits and other claims contributed the minimum to inflows.

“We also note the reduced participation in the equities space (37 per cent in 2016 versus 63 per cent in 2015),” the report stated.

The fixed income market recorded more inflows in Q3 2016 compared to the equities market due to the hike in Monetary Policy Rate (14 per cent) in July 2016.

Although the total inflows into the fixed income space in 2016 declined by 29.24 per cent year-on-year, the analysts observed the increased participation in the space compared to other segments during the period (19 per cent in 2016 against 13 per cent in 2015).

Notwithstanding, there were no inflows into bonds and money market in December, the report noted.

According to the report, on sectoral levels, telecommunications, banking, oil/gas production/manufacturing and services sectors contributed 18 per cent, 14 per cent, six per cent and six per cent, respectively. These sectors were said to have contributed the most to the capital inflows during the period under review.

The United Kingdom maintained its position as the leading source of capital inflows, accounting for 40 per cent of the total inflows.

It was trailed by the United a States of America (18 per cent) and The Netherlands (10 per cent).

Noteworthy also were Singapore and Switzerland whose inflows increased by 215 per cent and 322.3 per cent, respectively.

New inflows also came in from Puerto Rico, Gibraltar, Mauritania, Czech Republic, Ukraine, Marshall Islands, Bulgaria, Seychelles, Tanzania and Austria during the period under review, according to the report.

Based on location of investments, Lagos had the highest inflows with capital importation of 97 per cent, distantly followed by Abuja, Cross river, and Ogun states, which had one per cent each, it added.

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

Economy

Nigeria’s Excess Crude Account (ECA) Balance Now $72.4 Million

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Zainab Ahmed Finance Minister

Nigeria’s Excess Crude Account (ECA) Balance Now $72.4 Million

The Minister of Finance, Budget and National Planning, Zainab Ahmed, on Thursday said Nigeria’s Excess Crude Account (ECA) stood at $72,411,197.80 as of January 20th, 2021.

The minister disclosed this at the first National Economic Council (NEC) meeting of the year presided over by Yemi Osinbajo, Vice President and had in attendance State Governors, Federal Capital Territory Minister, Central Bank Governor and other senior government officials.

Ahmed said “Excess Crude Account (ECA), balance as at 20th January, 2021, $72,411,197.80; Stabilization Account, balance as at 19th January, 2021, N28,800,711,295.37; Natural Resources Development Fund Account, balance as at 19th January 2021, N95, 830,729,470.82.”

The minister also said President Muhammadu Buhari has approved N6.45 billion for the setting up of gas plants in 39 locations nationwide in an effort to increase COVID-19 treatment.

What is Excess Crude Account (ECA)

Excess Crude Account (ECA) is an account used to save the disparity in the market price of crude oil and budgeted price of crude oil as stipulated in the Federal Government Appropriation Bill.

Key Takeaways of Excess Crude Account (ECA)

  • Excess Crude Account (ECA) was established in 2004 by the Federal Government to stabilize Nigeria’s economy and smooth out the effect of crude oil fluctuation on Africa’s largest economy.
  • The ECA rose to its highest of $20 billion in November 2008 during the global oil boom when prices were above $100 per barrel.
  • Controversy, allegations of corruption, and uncertain performance have trailed the ECA since creation.
  • The balance plunged from $20 billion in 2008 to $72.4 million in January 2021.

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Economy

AfCFTA: Nigeria Customs Service Requested For Detailed Role In The Free Trade Agreement

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AfCFTA: Nigeria Customs Service Requested For Detailed Role In The Free Trade Agreement

Nigeria Customs Service (NCS) requested for a proper and detailed role expected to be carried out in the implementation of the African Continental Free Trade Area (AfCFTA) agreement.

The NCS said detailed explanations of roles and responsibilities of all parties involved in the free trade agreement should be spelled out to avoid overlapping of duties and to achieve a seamless implementation of AfCFTA.

Mr. Joseph Attah the Public Relations Officer, on behalf of the Comptroller-General of the NCS, Col Hameed Ali (Rtd.), issued a statement to address the call for a detailed role of the Customs.

“Our functions are highly automated and primarily systems-driven, hence the need to methodically harvest and integrate all data associated with AfCFTA into our system for easy deployment, access, and use by the trading public.

“We, therefore, await the National Action Committee (NAC) on the list of duties and charges waived for liberalised goods under AfCFTA. The list of the 90 percent liberalised national trade offers (NTOs); list of the 70 percent non-liberalised exclusive goods at the regional level; and list of the 3 percent non-liberalised sensitive goods.

“The appointment of a competent authority responsible for issuing and authenticating certificates of origin and registering enterprises and products within the region.” He said.

In the statement, NCS pledges commitment to the success of the trade pact and also identifies the transformational impact the free trade agreement would have on businesses in Nigeria and the Africa continent at large.

“Also, it is pertinent to inform the public about steps which must be taken to enable its smooth and full implementation,” He added

NCS recommended that the member-country of the free trade agreement should have a representative in the continental chamber, this is to ensure transparency and build the confidence of the members in the system.

“This, in our view, should be complementary to the activities of the various chambers of commerce of each country in the region. While awaiting clear directives concerning tariffs for all goods covered by this agreement, we want to assure the public of our preparedness to fully deploy our services at the shortest notice.

“Our desire is to imbue trust in the system while guaranteeing the economic safety and wellbeing of businesses within the country,”  NCS noted.

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Economy

COVID-19: Nigeria Record Highest New Cases on Thursday as Continent Death Nears 83,000

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COVID-19: Nigeria Record Highest New Cases on Thursday as Continent Death Nears 83,000

The largest African economy, Nigeria recorded her highest ever COVID-19 new cases on Thursday, 21st of January.

Nigeria recorded her highest daily count of 1,964 new COVID-19 cases on Thursday, this was 300 higher than the previous high record of 1,664 new COVID cases it recorded on the 7th of January, 2021.

The country has recorded a total of 116,655 cases, 93,646 recoveries and, 1,485 deaths across the states since the outbreak of the Corona Virus.

According to health experts, the daily increase of new cases in the new year could be ascribed to the massive gatherings during the festive season, the relaxation of COVID-19 protocols in the various parts of the country, and in the two major airports, Lagos and Abuja airport.

The adverse effect of the global health pandemic has seen Africa recorded 82,781 COVID-19 death cases across the continents.

Confirmed Cases of COVID-19 from 55 African countries reached 3,364,031, reported deaths were 82,781 and, 2,809,825 were reported to have recovered as of January 22, 2021

The Africa country with the most reported COVID-19 cases in South Africa with a total of 1,380,807 cases of which 39,501 are death cases. Other most-affected countries are Morocco (463,706), Tunisia (190,884), Egypt (159,715), Ethiopia (132,326), and Nigeria (116,655).

The numbers are compiled by the Center for Systems Science and Engineering (CSSE) at Johns Hopkins University (world map) using statistics from the World Health Organization and other international institutions as well as national and regional public health departments.

 

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