- Economic Growth Uncertain This Year
Many chief financial officers of business organisations in Nigeria says they are not confident about economic and business growth in 2017 but are optimistic about an improvement in the next two to three years.
Speaking at a press conference on Friday, a Partner and Head, Audit services, KPMG in Nigeria, Tola Adeyemi, said their views were contained in the 2017 KPMG CFO report.
The CFOs said their major challenge in 2016 was the unavailable foreign exchange, its volatile rates as well as weak infrastructure.
Adeyemi said, “The number one thing keeping the CFOs awake is non-availability as well as the fluctuation in the exchange rate. After that, they said they were facing a number of operational challenges, caused by the weak state of infrastructure in Nigeria.
“The message from this outlook, which we will be passing on to the government is that from 2017, the CFOs have all agreed that it will be a difficult year but there is confidence that things will improve beyond that. The key thing the government should do is to put some measures in place to help to sustain that confidence. The foreign exchange availability and volatility has got to be a priority for the government.”
Explaining the cost and management risks organisations were facing, a partner and Head, Tax, Regulatory and People Services, Nike James, said that the high interest rate and inability to transfer it to consumers had affected business revenue.
She said the financial officers complained about a declining volume of sales due to the low consumer spending.
Describing the economic outlook in the report as dire, James urged business organisations to devise strategies to manage credit risks, volatility of forex and access to funds.
She said, “Organisations need to evaluate their risk management strategies. The CFOs need to pay close attention to compliance management and develop a control framework.”
The Head, Management Consulting, KPMG in Nigeria, Segun Sowande, said that the confidence of the CFOs in the economy beyond 2017 was an opportunity for the government to introduce policies that would turn things around in order to meet businesses’ expectations.
A former Governor of the Central Bank of Nigeria, Prof. Chukwuma Soludo, had noted that it would take nothing short of a miracle for the Federal Government to return the naira to its exchange rate to the dollar as of the time President Muhammadu Buhari took over on May 29, 2015.
He said, “Buhari met a very bad situation when he assumed power, but he has made the situation worse. Nigeria today is a fragile state with a failing economy. Some say failing state; some say failed state.
“The economy is not just in recession; we are suffering from massive economic compression. Saying it is recession trivialises the issue.
“It will be a miracle if after eight years, by the time it leaves office in 2023, the current administration is able to return the economy in dollar terms to the exchange rate it met when it took over.”
NNPC Supplies 1.44 Billion Litres of Petrol in January 2021
The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.
The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.
NNPC said the 1.44 billion litres translate to 46.30 million litres per day.
Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).
The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.
Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.
For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.
Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.
Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.
NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021
The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.
This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).
The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.
It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.
NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.
Nigeria’s Food Inflation Hits 22.95 Percent in March 2021
Food inflation in Africa’s largest economy Nigeria rose by 22.95 percent in March 2021, the latest report from the National Bureau of Statistics (NBS) has shown.
Food Index increased at a faster pace when compared to 21.70 percent filed in February 2021.
Increases were recorded in Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits.
On a monthly basis, the food sub-index grew by 1.90 percent in March 2021. An increase of 0.01 percent points from 1.89 percent recorded in February 2021.
Analysing a more stable inflation trend, the twelve-month ended March 2021, showed the food index averaged 17.93 percent in the last twelve months, representing an increase of 0.68 percent when compared to 17.25 percent recorded in February 2021.
Insecurities amid wide foreign exchange rates and several other bottlenecks that impeded free inflow of imported goods were responsible for the surged in prices of goods and services in March, according to the report.
The Central Bank of Nigeria-led monetary policy committee had attributed the increase in prices to scarcity created by the intermittent clash between herdsmen and farmers across the nation.
However, other factors like unclear economic policies, increased in electricity tariffs, duties, subsidy removal and weak fiscal buffer to moderate the negative effect of COVID-19 on the economy continue to weigh and drag on new investment and expansion of local production despite the Federal Government aggressive call for improvement in domestic production.
Nigeria’s headline inflation rose by 18.17 percent year-on-year in the month under review.
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