african news Archives - Inside Business Africa

Apr82020 by Joshua OlotuNo Comments

IEA worried about OPEC’s capacity to save oil market

Oil & Gas

Even if the OPEC+ group and other major oil producers in the world were to agree to deep production cuts, they would be unable to prevent what is sure to be an enormous global inventory build this quarter due to unprecedented demand destruction, Fatih Birol, Executive Director of the International Energy Agency (IEA), has said. The measures many countries have taken to try to flatten the curve of the coronavirus pandemic are destroying unprecedented volumes of oil demand as more than 3 billion people—from India to Europe to the United States—remain in lockdown. As a result of restricted commuter travel, grounded flights, and economic slowdown, demand for oil in April is expected to drop by 20 million bpd year on year, and probably more. Even if OPEC+ plus other producers were to ...

Apr72020 by Joshua OlotuNo Comments

NSE All-Share Falls 3.5% as Lockdown Impacts Market Negatively

Capital Market

The Nigerian equities market fell by 3.51 per cent last week following continuing bearish trading brought by the COVID-19 on global stock markets. Sell pressure on bellwethers amidst rising cases of coronavirus made the Nigerian Stock Exchange (NSE) All-Share Index (ASI) to close lower at 21,094.62, from 21,861.78 the previous week. Similarly, the market capitalisation shed N399.8 billion to close lower at N10.994 trillion. All other indices finished lower with the exception of NSE Oil/Gas which appreciated by 2.33 per cent while NSE ASeM Index closed flat. Analysts at Cordros Securities believe the bearish trend would persist this week, as weakened market sentiments are expected to pressure market returns. They, however, advised investors to take a position in fundamentally justifi...

Apr62020 by Joshua OlotuNo Comments

Managing Nigeria’s Debt in Season of Despair

Economy

These are not the best of times for Nigeria. Indeed, it is the worst of times. We live in what Charles Dickens defined as “an epoch of incredulity, a season of darkness and a winter of despair.” A despairing economy seems set to finally come to ‘judgement’. Truth be told, the President Muhammadu Buhari administration since its empanelling in May 2015, has never really strong leash over the economy. It has been one capitulation after another as the president and his economic team increasingly portrayed their inscience and lack of erudition in national economic management. The global coronavirus epidemic and its associated crash in oil prices have left Nigeria open to the buffeting vagaries of external and internal shocks. With the price of Nigeria’s bonny light crude at just $20 ...

Apr22020 by Joshua OlotuNo Comments

Banks Limit Debit Card Withdrawal Abroad

Finance

Nigerian banks are limiting the amount individuals can withdraw with their debit cards while abroad, bankers said on Wednesday, in an effort to ease foreign currency settlement risk. The central bank is battling to conserve dollar reserves that are down 16 per cent from a year ago after the coronavirus outbreak triggered a sharp fall in the price of oil, Nigeria’s main export. The oil price plunge has also prompted foreign investors to shed Nigerian assets. Fidelity Bank said it would impose a new limit of $1,000 from April 1, down from $3,000 previously, a senior executive told Reuters. Other lenders — Zenith Bank and GT Bank — have lowered withdrawal limits for individuals while abroad. Stanbic IBTC Bank said it has pegged its daily limit at $300. Such moves have previously bee...

Apr12020 by Joshua OlotuNo Comments

Covid-19: Developing Countries’ Oil Revenue to Decline by 85%

Oil & Gas

The outbreak of the Covid-19 is expected to push down the oil revenue of Nigeria and other developing countries who rely on oil to fund their public spending, by up to 85 per cent, the Organisation of Petroleum Exporting Countries (OPEC) and International Energy Agency (IEA) have said. This is however on the condition that the situation fails to improve, and the global economy further weakens. The OPEC and IEA stated this on the back of the meeting of their heads: the Executive Director of the IEA, Dr Fatih Birol, and Secretary General of the OPEC, Dr. Mohammad Barkindo. A statement from OPEC explained that both leaders spoke by phone to review the current situation in global oil markets and expressed deep concerns about the grave global health crisis caused by Covid-19 and its r...

Apr12020 by Joshua OlotuNo Comments

COVID-19: Bailout for States Inevitable, Says FSDH

World

The disruptive effects of the spreading COVID-19 pandemic will make bailout for states in Nigeria inevitable if it prolongs, analysts at FSDH Merchant Bank Limited have stated. The financial institution stated this in its latest macroeconomic review for the first quarter of 2020, titled: “Steering a fragile economy in the face of uncertainties,” that was obtained yesterday. According to the Lagos-based firm, there would be need for the disbursement of intervention funds to vulnerable households that are affected by the virus, at both federal and states level, so as to cushion the impact on Nigerians. The report predicted that the outbreak of the virus was expected to have both direct and indirect impact on Nigeria’s economic growth this year. It showed that already, the Centra...

Mar312020 by Joshua OlotuNo Comments

NPA Denies Contradicting NCDC Over Covid-19 Case on Vessel

Economy

Following public reactions to attempts by the Nigerian Ports Authority (NPA) to get full details of COVID-19 cases said to have been found on a vessel, the Nigerian Ports Authority (NPA) has denied contradicting the National Centre for Disease Control (NCDC). The NPA said it did not by its tweet on last Thursday, contradict the information released to the public by the NCDC. In a statement by its General Manager, Corporate and Strategic Communications, Jatto Adams, explained that what the tweet sought to do was get full details of incident for purposes of record and better management in the future. The NPA said it needed the clarification to reassure its stakeholders who raised concern over the announcement that six cases were found on a vessel when as shipping companies, termina...

Mar312020 by Joshua OlotuNo Comments

AfDB Launches $3bn COVID-19 Bond

Growth & Insight

The African Development Bank (AfDB) has raised $3 billion in a three-year bond to help alleviate the economic and social impact the Covid-19 pandemic will have on livelihoods and Africa’s economies. The Fight Covid-19 Social bond, with a three-year maturity, garnered interest from central banks and official institutions, bank treasuries, and asset managers including Socially Responsible Investors, with bids exceeding $4.6 billion. This was the largest Social Bond ever launched in international capital markets to date, and the largest US Dollar benchmark ever issued by the Bank. It will pay an interest rate of 0.75 per cent. According to a statement, the AfDB is moving to provide flexible responses aimed at lessening the severe economic and social impact of this pandemic on its re...

Mar312020 by Joshua OlotuNo Comments

NANTA Gets New President

Business

The National Association of Nigerian Travel Agencies (NANTA) has sworn in Mrs. Susan Akporiaye as the 44th president of association. Akporiaye took over from Mr. Bankole Bernard, the immediate past president of the association. Speaking after she was sworn in, Akporiaye assured NANTA members and its stakeholders of continuity, since she was a member of the immediate past executives. “On one hand you are assured of continuity because I was one of the outgoing executives of the last administration. COVID-19, which is currently ravaging the world has become an impediment to reach out physically in the engagement process, but we shall overcome the challenge” Akporiaye said. According to her, this is the birth of a new beginning as the incoming executive takes over under her leader...

Mar312020 by Joshua OlotuNo Comments

Customs Joint Border Operations Intercept Smuggled Goods Worth N802m

Economy

The Zonal Coordinator, Joint Border Drill Operations in charge of the North Central zone, Mr. Mohammed Uba Garba, said his team has intercepted 151 smuggled goods worth over N802 million since its inception. He also said it also arrested 23 suspects and repatriated 106 illegal migrants during the period under review. Speaking with journalists in Ilorin at the weekend, on the activities of the operation, Mr. Garba said the development was due to the commitment of the men of the operations to rid the country from the activities of smugglers in the country. According to him, the seizures were made around Jebba-Mokwa, Okuta, Alapa and Kotangora axis of the sector. He said that, “out of over N802 million worth of goods intercepted, a sum of N98 million worth of smuggled goods were ...