OPEC Plus Attains 87 Percent Compliance Level in the Month of May
The Organisation of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC Plus, attained 87 percent compliance level in the month of April, a Reuters report stated.
The report, which quoted a familiar source with OPEC plus data, said the level stated was same as the Russia’s TASS news agency report.
This is coming barely a week after OPEC plus agreed to extend 9.7 million barrels per day production cuts to July in order to further stabilise global oil market and support low oil prices.
The cartel had warned that members who failed to abide by the agreed quota will be forced to cut in the subsequent months following reports that Nigeria and Iraq are struggling to cut production given their economic needs in the face of COVID-19 pandemic.
Meanwhile, oil prices rebounded with other assets on Tuesday after the US Federal Reserve announced additional stimulus to further pump money into the economy.
The central bank had announced it would extend debt buying to corporate organisations in a move seen by many experts as ‘do whatever it takes.’
Charalambos Pissouros, a senior market analyst at JFD Bank, said the announcement would make investors eager for additional economic support from the apex bank and further restore confidence in the stock market.
“However, following yesterday’s announcement over corporate bonds, investors may be eager to find out whether the Fed remains willing to do more in order to support economic activity hit by the pandemic,” Pissouros said in a note Tuesday.
“If so, equities and risk-linked currencies are likely to continue their journey north, as investors keep diverting their capital out of safe havens, the likes of the U.S. dollar, the yen and the (Swiss) franc.”
The Brent crude oil, against which Nigerian oil, is measured rose above $40 a barrel on Tuesday during the Asian trading session.
FG Establishes New Crime Agency, Proceeds of Crime Recovery and Management Agency
Proceeds of Crime Recovery and Management Agency Established by Government
The Federal Government has approved the creation of a new crime agency called “The Proceeds of Crime Recovery and Management Agency” to better manage the loots recovered from financial criminals by the growing list of anti-graft agencies established by the government.
The new agency was approved on Wednesday at the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari.
The president said the new agency seeks to move the fight against corruption to the next level as there is no agency of government that “can give you off-head the number of landed assets, number of immovable assets, the amount in cash that are recovered by the federal government by way of interim forfeiture overweigh of a final forfeigture.”
“So, it is indeed overtime a kind of arrangement that is not uniform and consistent.”
He added: “Next level of transparency, next level of accountability in essence, will have in place an agency of government that is exclusively responsible for anything proceeds of crime.
“A one-stop shop arrangement by which all the assests that are recovered arising from crimes that are indeed vested in the federal government, you have a one-stop arrangenet where you can have an information. As it is for example, the Federal Ministry of Justice is only in a position to account and giving comprehensive account of what
recoveries were made by the ministry.
“But any recovery made by the police, DSS, the Ministry of Justice is not in a position to know. So, for the purpose of decision making and policy, the federal government is not in a position to have a wholistic appreciation.
“So, by the bill that is now presented for the consideration of the council, we’ll have a law that establishes an agency, and secondly, an agency.
“And as you rightly know, Mr President has sanctioned ever since he came on board, that there should be a budget line, a budget item for recovered assets.
“So, if you have a budget item for recovered assets, this agency will now be in a position to provide information to the Federal Ministry of Finance, Budget and National Planning on demand as to what amount is available for budget purposes, thereby establishing the desired transparency, the desired accountability which has not been available before now.
“So, it is about a memo that seeks to establish a legal framework, that seeks to establish institutional framework, that seeks to further take the fight against corruption to the next level by way of establishing transparency, accountability and making the possibility of forfeiture a proceeds of crime easy through the sanctioning of non-conviction based forfeiture among others.”
Inflation Rate Increases Further in August to 13.22%
Prices of Goods and Services Jump in Nigeria in August
Nigeria’s inflation rate rose further in the month of August to the highest since April 2018, according to the latest report from the National Bureau of Statistics (NBS).
In the report released on Tuesday, the NBS said Consumer Price Index, which measures inflation rate, increase by 13.22 percent in the month under review.
This represents a 0.40 percent points increase from the 12.82 percent posted for the month of July.
On a monthly basis, consumer prices increased by 0.09 percent points from 1.25 per cent achieved in July to 1.34 percent in August 2020.
The report read in part, “The consumer price index, which measures inflation increased by 13.22 percent (year-on-year) in August 2020. This is 0.40 percent points higher than the rate recorded in July 2020 (12.82 percent).
“On a month-on-month basis, the headline index increased by 1.34 percent in August 2020. This is 0.09 per cent higher than the rate recorded in July 2020 (1.25 per cent).”
Rising costs continue to disrupt consumer spending in Africa’s largest economy, especially after President Muhammadu Buhari removed subsidy, up VAT from 5 percent to 7.5 percent and implemented service reflective electricity tariff during a tough period of global pandemic.
Despite majority of Nigerians saying the time is wrong, experts have said it was the International Monetary Fund and the World Bank that compelled the administration to up revenue generation in order to continue to service its debt and embark on necessary capital projects.
With the $3.4 billion loan secured from the IMF in May running out amid falling oil price and weak demand for the commodity, the Buhari led administration once again approached the World Bank for another loan of $1.5 billion to further cushion the negative impacts of COVID-19.
According to the people familiar with the process, the new loan is not receiving much attention from the multilateral financial institution as it insisted that some of the agreement reached with the International Monetary Fund before securing the $3.4 billion have not been implemented.
This, experts said was one of the main reasons the federal government made all the recent adjustments despite economic challenges and limitations.
The food index increase from 15.48 percent in July to 16 percent in the month of August, according to the statistics office.
“This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fish, fruits, oils and fats and vegetables,” it added.
The persistent increase in prices bolstered cost of living and plunged consumer spending in Africa’s largest economy due to broad-based layoffs and businesses shutting down operations for a safe haven.
NNPC Says It Spent N41.98 Billion on Pipeline Repairs in Six Months
NNPC Spends N41.98 Billion on Pipeline Repairs
The Nigerian National Petroleum Corporation (NNPC) has said it spent a total sum of N41.98 billion on pipeline repairs and management in the first six months of the year.
The corporation stated in its latest monthly oil report, saying “Products theft and vandalism have continued to destroy value and put NNPC at disadvantaged competitive position.”
It explained that a total of 1,067 pipeline points were vandalised between June 2019 and June 2020 with 33 of those vandalised in June 2020. That was 11 percent lower than the 37 points vandalised in the month of May.
The NNPC said, “Mosimi-Ibadan accounted for 33 per cent while ATC-Mosimi and Warri-River Niger recorded 27 per cent of the breaks each; other locations make up for the remaining 13 per cent.
“NNPC in collaboration with the local communities and other stakeholders continuously strive to reduce and eventually eliminate this menace.”
Further break down showed the NNPC spent N5.48 billion on pipeline repairs and management costs in the month of January 2020. In February, March, April, May and June of the same year, the corporation spent N6.74 billion; N7.69 billion; N7.84 billion; N7.99 billion and N6.24 billion, respectively.
The corporation also said the pipelines have aged over the years, therefore, giving rise to frequent failures and consequent operational downtimes.
“In addition, these facilities have aged over the years giving rise to frequent failures and consequent operational downtimes, high maintenance cost and revenue losses,” the NNPC added.
Business2 months ago
Nneka Ede Purchases Portuguese Football Club, Lusitano Ginasio Clube
News2 months ago
British High Commission to Start Accepting Visa Applications From Nigerians Soon
Business2 months ago
Seplat Appoints Emeka Onwuka as CFO, Executive Director
Forex2 months ago
Naira-USD Exchange Rate to Hit N430 – Report
Finance2 months ago
DSS Arrests EFCC, Acting Chairman, Magu
Government2 months ago
FG Puts School Resumption Plan on Hold as COVID-19 Cases Hit 30,000
Forex2 months ago
Naira Declines Against Pound, Euro After Devaluation
Business2 months ago
TAJBank Joins e-Commerce Giants- Launches Nigeria’s 1st Ethical Online Mall