- Economy Attracted $4.14bn Investment in Third Quarter – NBS
The Nigerian economy attracted a total investment inflow of $4.14bn in the third quarter of this year, the National Bureau of Statistics has said.
The NBS, in its capital importation report, which was released on Monday, said the investment inflow in the third quarter was a significant improvement over the $1.79bn and $908.26m recorded in the second and first quarters of this year, respectively.
So far, a total investment of $6.85bn has been attracted into the economy this year.
The NBS noted that this was the first time since the beginning of 2015 that investment inflows would hit over $4bn in a quarter.
The report explained that the increase in investment inflow was as a result of significant growth in both portfolio and other categories of investments.
It read in part, “The capital importation into Nigeria in 2017 Q3 recorded a substantial increase compared to the past few quarters, as the economy continued to recover from recession following its exit in Q2 2017.
“The total capital imported in the third quarter was recorded at $4.14bn, more than double the inflow in the second quarter of this year, representing an increased value of 147.5 per cent on a year-on-year basis.
“The boom in capital importation in Q3 2017 was mainly driven by significant growth in both portfolio investment and other investment.”
A breakdown of the investment inflow showed that portfolio, with $2.76bn, remained the largest component of the capital imported into the country, contributing about 67 per cent of the total amount.
Portfolio investment, according to the report, expanded faster than the other categories with a year-on-year growth rate of 200.7 per cent.
The report stated that foreign domestic investment recorded a total amount of $117.6m, representing a 65.5 per cent decline.
It added, “The total amount of foreign direct investments during the quarter was recorded at $117.6m, which declined by 57.14 per cent compared to the previous quarter and 65.48 per cent compared to 2016 Q3 due to the fall in both equity and other capital investment.
“This category of capital investment showed a surprising decrease in value when both portfolio investments and other investment grew strongly over the third quarter.
“Capital import in the form of equity recorded $117.5m and remained the majority of total FDI in the third quarter of 2017, while other capital fell from $0.3m to $0.13m from the second to the third quarter.”
NLNG Boosts Cooking Gas Production to 1.5 Million Metric Tonnes Annually
Nigeria Liquefied Natural Gas Limited (NLNG) has announced a significant milestone in its operations, boosting its annual production of liquefied petroleum gas (LPG), commonly known as cooking gas, to over 1.5 million metric tonnes.
This surge in production underscores NLNG’s commitment to meeting the rising demand for clean cooking energy in Nigeria.
The entirety of NLNG’s 1.5 million tonnes production is now being sold domestically within Nigeria.
Moreover, the company has initiated a landmark shift by starting to supply LPG in naira, moving away from the traditional practice of trading in United States dollars.
This move aligns with calls from stakeholders in the oil and power sectors advocating for naira transactions, especially amidst the challenges posed by currency fluctuations.
During a panel session at the 7th Nigeria International Energy Summit in Abuja, NLNG’s General Manager of Finance, Fatima Adanan, highlighted the company’s dedication to enhancing LPG penetration across the country.
Adanan emphasized NLNG’s vision to make Nigeria a better place by promoting the use of cleaner energy sources like gas.
While NLNG’s production surge is commendable, Adanan acknowledged that Nigeria’s LPG requirements surpass the current output, necessitating imports to bridge the gap.
However, NLNG remains committed to expanding its production capacity to meet the nation’s energy needs and drive increased adoption of LPG as a cleaner cooking fuel.
CBN Raises Benchmark Interest Rate by 400 Basis Points to 22.75%
The Central Bank of Nigeria (CBN) has raised the benchmark interest rate by 400 basis points to a record 22.75%.
The decision made by the Monetary Policy Committee (MPC) comes amidst rising inflationary pressures and growing uncertainty in Africa’s largest economy.
Nigeria’s inflation rate rose to 29.90% in January 2024, the highest in over two decades while the nation’s unemployment rate quickened to 5% in the third quarter of 2023. Suggesting that the rising costs have continued to drag on both new job creation and the existing ones.
This coupled with a series of policy adjustments implemented by President Bola Ahmed Tinubu has plunged economic productivity and eroded consumer spending as citizens grapple with high fuel prices, electricity tariffs, a record-high foreign exchange rate, and insecurities.
Therefore, it is surprising that the Monetary Policy Committee (MPC) led by the CBN will further increase borrowing costs by 400 basis points at a time when job creation is paramount.
While the economy reportedly grew by 3.46% in the fourth quarter (Q4) of 2023 on the back of robust performance of the services sector, this growth is yet to crystalise as businesses and citizens have taken to the street protest against the harsh economic situation.
Economic experts have started questioning the data from the National Bureau of Statistics (NBS) given its lack of correlation between the data and economic reality.
President Tinubu Unveils Geometric Power Plant in Aba After 20-Year Wait
After two decades of anticipation, President Bola Tinubu, through his representative Vice President Kashim Shettima, inaugurated the long-awaited Geometric Power Plant in Aba, a significant milestone in the city’s quest for reliable electricity supply.
The event, which also saw the commissioning of three rehabilitated roads by Abia State Governor Alex Otti, symbolizes the culmination of years of perseverance and determination to transform Aba’s power landscape.
Addressing the audience, Vice President Shettima hailed the project as a testament to the power of visionary leadership and unwavering commitment to progress.
He said the Geometric Power Plant exemplifies the transformative impact of strategic infrastructure investments on local communities.
Governor Otti echoed similar sentiments, emphasizing the importance of the power project in positioning Aba as a hub for national and international business ventures.
He commended the efforts of Geometric Power Limited while urging them to uphold transparency and avoid exploiting consumers.
The inauguration of the Geometric Power Plant comes amidst growing concerns over Nigeria’s power infrastructure and the need for sustainable solutions to address electricity shortages.
The project, with a capacity of 188MW, holds promise for significant improvements in power supply across Abia State, benefitting nine out of seventeen local government areas.
The Managing Director of Geometric Power Limited, Ben Caven, underscored the scale of investment involved, totaling $800 million.
He highlighted the comprehensive nature of the project, which includes the installation of new power substations and a 27km natural gas pipeline, signaling a comprehensive approach to enhancing Aba’s energy infrastructure.
In conclusion, the inauguration of the Geometric Power Plant represents a transformative moment for Aba, offering renewed hope for economic growth and prosperity powered by reliable electricity supply.
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