The Nigerian National Petroleum Corporation, NNPC, weekend disclosed that it paid $48.99 million to the Federation Account in two months, June and July 2016.
The NNPC, in its Monthly Financial and Operations Reports, revealed that the payment was after its failure to make any dollar remittances to the Federation Account Allocation Committee, FAAC, for 14 months, from April 2015 to May 2016.
This, according to the report, is mainly due to declining crude oil earnings, which led to the NNPC transferring all dollar proceeds from crude oil and gas export sales to payments for Joint Venture Cash Call.
Specifically, the NNPC’s last foreign exchange (dollar) remittance to the Federation Account was in March 2015, when it paid $184.978 million to FAAC.
For the month of June 2016, the report pointed out that the NNPC remitted $4.866 million, while $44.125 million was remitted in the month of July 2016.
In addition, the report noted that in a 12-month period, from August 2015 to July 2016, only the amount remitted for June and July 2016, $48.99 million, had been paid into the Federation Account, while of a total NNPC crude oil and gas export sales proceed of $3.212 billion, $3.163 was utilised for Joint Venture cash call funding.
Giving further breakdown, the NNPC report said, “Total export revenue of $226.47 million was recorded in June, 2016 representing 21 per cent increase relative to preceding performance. Crude oil export sales contributed $153.011 million (or 67.56 per cent) of the dollar transactions compared with $68.89 million contribution in previous month. Also the export gas sales amounted to $73.46 million in the month of June, 2016. Twelve month crude oil and gas transactions indicate that crude oil and gas worth $3.254 billion was exported.
“Total export proceeds of $212.25 million were recorded in July 2016 as receipt. Contribution from crude oil amounted to $145.51 million while gas proceeds was $64.21 million and miscellaneous receipt amounting to $2.53 million.
Continuing, the NNPC said, “The poor performance is attributable to upsurge in attack and sabotage of oil facilities in the Niger Delta. At Forcados Terminal alone about 300,000 barrels of oil per day, bopd, were shut in since February 2016 following force majeure declared by Shell Petroleum Development Company, SPDC.
“A number of crude oil liftings were deferred until the repair is completed. Other major terminal affected by the renewed spate of vandalism includes Bonny, Usan and Qua Ibo terminals.
“Total export crude oil and gas receipt for the period of August 2015 to July 2016 stood at $3.21 billion. Out of which the sum of $3.16 billion was transferred to Joint Venture (JV) cash call in line with 2015/2016 approved budget and the balance of $0.49 billion was paid to Federation Account.
“However, this amount falls short of the calendarised appropriated amount of $615.80 million and $712.46 million for 2015 and 2016 respectively. This is due to worsening production and fall in crude oil price.”
Remits N98.8bn in two months
On the other hand, the report added that the NNPC remitted N98.844 billion in the months of June and July to the Federation Account from the domestic sales of crude oil and gas.
Specifically, N62.288 billion and N36.556 billion were remitted by the NNPC to the Federation Account in June and July 2016 respectively.
To this end, the report stated that out of total earnings of N993.33 billion from domestic crude oil and gas sales recorded from August 2015 to July 2016, N111.4 billion was utilised for Joint Venture cash call (naira only) payments, while N881.93 billion was remitted to the Federation Account in the 12-month period.
Banks’ Credit to Economy Hits N19.33 Trillion in August
Deposit Money Banks Credit to Economy Rose to N19.33 Trillion in August
The total credit facility to the economy rose to N19.33 trillion in the month of August.
The Central Bank of Nigeria-led monetary committee disclosed on Tuesday after the nation’s monetary policy committee meeting.
The committee attributed the improvement to the 65 percent loan-to-deposit ratio policy implemented to compel the nation’s deposit money banks to join central bank efforts at growing the real sector of the economy.
Godwin Emefiele, the Governor of the Central Bank of Nigeria, who spoke during the meeting said “The bank’s policy on Loan to Deposit ratio also resulted in a significant growth in credit to various sectors from N15.57tn to N19.33tn between end-May 2019 and end-August 2020, an increase of N3.77tn.
“This growth in credit was mainly to manufacturing (N866.27bn), consumer credit (N527.65bn), oil and gas (N477.65bn), agriculture (N287.11bn) and construction (N270.97bn).”
On monetary aggregates, broad money supply (M3) rose to 6.93 per cent (year-to-date) in August 2020 from 5.23 per cent in July 2020, reflecting the increase in both Net Foreign Assets and Net Domestic Assets.
He said total domestic credit grew by 6.94 percent in August 2020, lower than the 9.43 percent recorded in July 2020.
The committee reduced the nation’s benchmark interest rate by 100 basis points to 11.5 percent, down from the previous 12.5 percent.
Emerging Cities Take on Established Hubs for Graduates Seeking a Career in Finance
Graduates Seeking a Career in Finance Prefer Dubai to Start Their Career
Dubai is the number one global destination for graduates who successfully complete the flagship graduate programme at one of the world’s largest independent financial advisory organisations.
On passing the intensive scheme, deVere Group routinely asks graduates in which location within the Group’s global network of offices they would like to start their international financial services career. This year, 36% have responded with Dubai.
The second most popular is London (25%); Hong Kong is third (14 %); Mexico City is fourth (13%) and Moscow is fifth (6%).
The remaining 6% is made up of other destinations including Shanghai, Geneva, Paris, and Abu Dhabi.
deVere Group CEO and founder Nigel Green comments: “This survey highlights that the next generation of financial services professionals are open to look beyond the traditional and more established global financial hubs.
“The order of the top destinations changes with each group of grads we take on, but Dubai, London, and Hong Kong are typically in the top five somewhere.
“This is because, quite understandably, these global hubs of finance, commerce and technology represent centres of enormous possibilities for ambitious individuals about to embark on careers as international wealth-advisory and fintech professionals.
“There are some common traits amongst these cities, including that English is commonly spoken, they are politically and economically stable, there is a high level of internationally-minded high net worth individuals, and by relocating to these places one can usually expect comparatively high financial rewards.”
He continues: “What is different this year is that for the first time emerging financial hub cities are making the top five. Mexico City and Moscow are now actively competing for top talent with well-established international financial centres like Shanghai, Geneva and Tokyo.
“All these global destinations are unique and differ from each other in terms of the lifestyle they offer and in terms of clients’ expectations, economic environments and regulatory conditions.
“With each of the top five cities offering unique opportunities and challenges, each one attracts grads who have often quite markedly different strengths and weaknesses, skill sets and aspirations,” notes Mr Green.
“The results of this survey suggest that despite the pandemic, talented young people seeking a rewarding career are keen to look for opportunities internationally.”
The deVere CEO concludes: “With a globally-focused outlook from the wealth advisers and fintech professionals of the future, we can expect this trend of emerging hub cities to take on stalwart destinations to continue for the foreseeable future.”
Adesina, Godwin Emefiele, Others to Deliver Keynote Address at ASA 2020
Adesina and Godwin Emefiele to Deliver Keynote Speech at Agriculture Summit Africa (ASA) 2020
The President of the African Development Bank (AfDB), President Dr. Akinwunmi Adesina, is expected to deliver the keynote address at the 2020 Agriculture Summit Africa (ASA) holding this week.
The yearly summit organised by Sterling Bank is titled ‘Fast forward agriculture: Exploiting the Next Revolution’ this year.
According to the organisers, participants were expected to log in online while a few others would be in Lagos and Abuja studios.
In a statement released on Tuesday, Yemi Odubiyi, the Executive Director of Corporate and Investment Banking, Sterling Bank said other dignitaries were expected to deliver goodwill messages at the summit.
Some of the names mentioned were the governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele; Minister of Agriculture and Rural Development, Alhaji Muhammad Sabo Nanono; Cross River State Governor, Prof. Ben Ayade; his Kebbi counterpart, Senator Atiku Bagudu; and the Oniru of Iru Kingdom, Oba Abdulwasiu Omogbolahan Lawal.
Director, Advocacy and Country Alignment Function (ACAF), Director-General’s Office, International Institute of Tropical Agriculture (IITA), Dr. Kwasi Attah-Krah, is expected to deliver another keynote address on the second day.
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