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FG Exploring $300m Diaspora Bond to Make Nigerians Abroad Buy into ERGP



  • FG Exploring $300m Diaspora Bond to Make Nigerians Abroad Buy into ERGP

The federal government is to float a $300 million Diaspora Bond as part of measures to galvanise the buy-in of foreign-based Nigerians into the Economic Recovery and Growth Plan (ERGP), the Special Adviser to the President on Economic Matters, Dr. Adeyemi Dipeolu, has said.

The ERGP is a four-year (2017-2020) medium-term roadmap for Nigeria’s economic recovery, growth and sustainable development.

The Plan envisages that by 2020, Nigeria would have made significant progress towards achieving structural economic changes with a more diversified and inclusive economy.

Overall, the ERGP is expected to deliver on five key broad outcomes comprising a stable macroeconomic environment, agricultural transformation and food security, sufficiency in energy (power and petroleum products), improved transportation infrastructure, and industrialisation focusing on small and medium scale enterprises.

Dipeolu, who spoke at a presidential economic communications workshop for finance/economy correspondents and editors in Abuja at the weekend, said the Diaspora Bond was being conceptualised to make Nigerians resident outside the country contribute to the country’s growth and recovery.

The National Assembly has already approved the Diaspora Bond.

The theme of the workshop, organised by the Office of the Vice-President in collaboration with the Bank of Industry (BoI) was “Economic Recovery and Growth”.

The presidential aide, who was responding to questions at the workshop, said the bond was being conceptualised and would be floated when all the necessary requirements have been put in place.

The Minister of Finance, Mrs. Kemi Adeosun had in January declared that Nigerians in the Diaspora, who were desirous of investing in the $300 million bond, would have the privilege of doing so in March, when it would be rolled out.

According to her, the Diaspora Bond would follow on the completion of the Eurobond, which was issued last month.

Dipeolu, who took time to explain what the ERGP is all about, said it was anchored on the 2016 Strategic Implementation Programme (SIP) and not designed to have a kind of command structure at the centre.

According to him, the plan was designed to be a guide and signalling tool on the direction the economy should go with all the stakeholders at all levels expected to buy in.

He noted that a major attribute of the ERGP was its inclusiveness, noting that every strata of the country would be impacted through its implementation, citing the School Feeding Programme and Conditional Cash Transfer, among others as pointers.

Dipeolu said the feeding programme would positively impact the lives of farmers, who produce food, transporters, cooks and others in the value chain.

The presidential adviser also noted that the N-Power programme had already drawn over 200,000 graduates as beneficiaries.

Dipeolu also stated that some sectors that would trigger economic expansion this year included road construction, railway and the Family Home Scheme.

Progress, he pointed out, was being made in road construction, citing the Lagos-Ibadan expressway as well as the rail sector, including the Idu (Abuja) and Kaduna rail link.

He expressed optimism that when the activities are galvanised in a holistic manner, the positive impact of the ERGP would be appreciated in no distant time.

But he advised that the country should get back to treating national development plans as a priority.

Dipeolu said while emphasis on timelines for ERGP programmes was good, these timelines were not an end in themselves.

According to him, the national development plans of the 60s and 70s had timelines, asking rhetorically: “But did they achieve their objectives?”

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.

Crude Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend




Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Oil retreated from an earlier rally with investment banks and traders predicting the market can go significantly higher in the months to come.

Futures in New York pared much of an earlier increase to $63 a barrel as the dollar climbed and equities slipped. Bank of America said prices could reach $70 at some point this year, while Socar Trading SA sees global benchmark Brent hitting $80 a barrel before the end of the year as the glut of inventories built up during the Covid-19 pandemic is drained by the summer.

The loss of oil output after the big freeze in the U.S. should help the market firm as much of the world emerges from lockdowns, according to Trafigura Group. Inventory data due later Tuesday from the American Petroleum Institute and more from the Energy Department on Wednesday will shed more light on how the Texas freeze disrupted U.S. oil supply last week.

Oil has surged this year after Saudi Arabia pledged to unilaterally cut 1 million barrels a day in February and March, with Goldman Sachs Group Inc. predicting the rally will accelerate as demand outpaces global supply. Russia and Riyadh, however, will next week once again head into an OPEC+ meeting with differing opinions about adding more crude to the market.

“The freeze in the U.S. has proved supportive as production was cut,” said Hans van Cleef, senior energy economist at ABN Amro. “We still expect that Russia will push for a significant rise in production,” which could soon weigh on prices, he said.


  • West Texas Intermediate for April fell 27 cents to $61.43 a barrel at 9:20 a.m. New York time
  • Brent for April settlement fell 8 cents to $65.16

Brent’s prompt timespread firmed in a bullish backwardation structure to the widest in more than a year. The gap rose above $1 a barrel on Tuesday before easing to 87 cents. That compares with 25 cents at the start of the month.

JPMorgan Chase & Co. and oil trader Vitol Group shot down talk of a new oil supercycle, though they said a lack of supply response will keep prices for crude prices firm in the short term.

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Crude Oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return



Crude oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up $1.38, or 2.2%, at $64.29 per barrel. West Texas Intermediate gained $1.38, or 2.33%, to trade at $60.62 per barrel.

Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production along with 21 billion cubic feet of natural gas output, analysts estimated.

Shale oil producers in the region could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output affected, sources said, as frozen pipes and power supply interruptions slow their recovery.

“With three-quarters of fracking crews standing down, the likelihood of a fast resumption is low,” ANZ Research said in a note.

For the first time since November, U.S. drilling companies cut the number of oil rigs operating due to the cold and snow enveloping Texas, New Mexico and other energy-producing centres.

OPEC+ oil producers are set to meet on March 4, with sources saying the group is likely to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.

“Saudi Arabia is eager to pursue yet higher prices in order to cover its social break-even expenses at around $80 a barrel while Russia is strongly focused on unwinding current cuts and getting back to normal production,” said SEB chief commodity analyst Bjarne Schieldrop.

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Crude Oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather




Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Oil prices rose to $65.47 per barrel on Thursday as crude oil production dropped in the US due to frigid Texas weather.

The unusual weather has left millions in the dark and forced oil producers to shut down production. According to reports, at least the winter blast has claimed 24 lives.

Brent crude oil gained $2 to $65.47 on Thursday morning before pulling back to $64.62 per barrel around 11:00 am Nigerian time.

U.S. West Texas Intermediate (WTI) crude rose 2.3 percent to settle at $61.74 per barrel.

“This has just sent us to the next level,” said Bob Yawger, director of energy futures at Mizuho in New York. “Crude oil WTI will probably max out somewhere pretty close to $65.65, refinery utilization rate will probably slide to somewhere around 76%,” Yawger said.

However, the report that Saudi Arabia plans to increase production in the coming months weighed on crude oil as it can be seen in the chart below.

Prince Abdulaziz bin Salman, Saudi Arabian Energy Minister, warned that it was too early to declare victory against the COVID-19 virus and that oil producers must remain “extremely cautious”.

“We are in a much better place than we were a year ago, but I must warn, once again, against complacency. The uncertainty is very high, and we have to be extremely cautious,” he told an energy industry event.

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