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Capital Importation Fell To $875.62m In Q2 – NBS

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Foreign Trade In Nigeria Rises To N13.3 Trillion

The total value of capital importation into Nigeria fell to $875.62 million in the second quarter (Q2) of 2021 , the National Bureau of Statistics (NBS) has declared.

The NBS disclosed this on Tuesday in its latest report titled, ‘Nigerian capital importation (Q1 & Q2 2021).’

In 2020, Nigeria’s capital importation plunged by 59.65 percent at $9.68 billion – the lowest level in four years.

NBS said the figure represented a 54.06 percent drop compared to the $1.91 billion in the first quarter (Q1) of 2021.

“The largest amount of capital importation by type was received through portfolio investment, which accounted for 62.97% ($551.37m) of total capital importation,” the report reads.

“It is followed by other investments, which accounted for 28.13% ($246.27m) of total capital imported and Foreign Direct Investment (FDI), which accounted for 8.90% ($77.97m) of total capital imported in Q2 2021.”

READ ALSO: CBN Bans Sale Of Dollars To Bureau De Change Operators

By sector, capital importation into the banking industry dominated in Q2 reaching a total of $296.51 million, followed by financing with $205.88 million and shares with $194.59 million.

In both Q1 and Q2, brewing, fishing, hotels, tanning and weaving sectors had no record of capital imports, the report added.

Similarly, only Lagos, Ogun and the federal capital territory (FCT) recorded capital inflows across Nigeria in Q2.

Lagos state emerged as the top destination of capital investment in the second quarter with $780.06 million, Abuja had $95.26 million, while Ogun had $0.3 million.

By banks, foreign firms emerged as the top capital investment in Nigeria in Q2. Stanbic IBTC recorded $310.21 million, Standard Chartered was second with $282.37 million, then Citibank ($94.15 million).

The report also stated that “the United Kingdom emerged as the top source of capital investment in Nigeria in Q2 2021 with $310.26m.”

 

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CBN Retains MPR At 11.5 Per Cent

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CBN Retains MPR At 11.5 Per Cent

Central Bank of Nigeria (CBN) Governor Godwin Emefiele has disclosed that the Monetary Policy Rate remains 11.5 per cent.

Emefiele spoke with journalists after the first Monetary Policy Committee meeting for the year held in Abuja on Tuesday.

Other parameters left unchanged are the Cash Reserve Ratio and Liquidity Ratio at 27.5 per cent and 30 per cent respectively.

READ ALSO: Buhari Approves Suspension Of Fuel Subsidy Removal

Announcing the committee’s decision, Emefiele said : “After a careful balancing of the benefits and the downside risks of the policy options, the MPC decided to hold all parameters constant, believing that a whole stance will enable the continuous permeation of current policy measures in supporting the recorded growth recovery and further boost production and productivity which will ultimately rein in inflation in the short to medium term.

“The MPC thus decided by a unanimous vote, the MPC voted as follows, one, retain MPR at 11.5 per cent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 per cent; and retain the Liquidity Ratio at 30 per cent.”

 

 

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Dangote Refinery To Begin Operations Before End Of Third Quarter Of 2022

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Dangote Refinery To Begin Operations Before End Of Third Quarter Of 2022

The Dangote Refinery and Fertiliser projects is set to come on stream before the end of third quarter of this year.

This was disclosed by Alhaji Aliko Dangote, President of Dangote Group, when Dr. Akinwumi Adesina, President of the African Development Bank (AfDB) led a delegation of the bank to the project site in Lagos.

“The refinery will commence operation by the third quarter of 2022. On the mechanical completion, we are almost finished but we have started hydro testing, almost 70 per cent gone, hopefully before the end of Q3 operation will commence,” Dangote said.

READ ALSO: Dangote Tells Court American Ex-mistress Trying To Extort $5m

Group Executive Director, Strategy, Portfolio Development & Capital Projects, Dangote Industries Limited, Devakumar Edwin, said the refinery complex, which includes a refinery, petrochemical plant, a fertiliser plant and a subsea pipeline project, is the largest single-train refinery in the world.

Edwin stated that the 650,000 barrels-per-day refinery would stimulate economic development in Nigeria.

According to him, Dangote Petroleum Refinery can meet 100 per cent of the Nigerian requirement of all liquid products (Gasoline, Diesel, Kerosene and Aviation Jet), and also have surplus of each of these products for export.

He stated that this would create a market for $11 billion per annum of Nigerian crude and foreign exchange savings/earnings $9.9 billion.

“We have impacted on job creation with 3,580 Nigerian personnel on site, excluding employment by the various contractors and subcontractors at the site,” he noted.

Commending Dangote for the initiative, the AfDB President said, “One of the things I admire the most about Alhaji Dangote is that, he actually believes in Nigeria, and he invests his money in Nigeria. He believes in Africa and invests in Africa. Nobody could invest the type of billions of dollars that is here, unless the person not only has the vision but also the commitment and passion for his country. We are extremely proud of you and of your commitment to the continent.

“I am completely blown away with what I saw here today. I can’t believe what I saw. This project will reverse the huge sum the nation spends on foreign exchange. When you look at how much we import, it is about $57 billion worth of different products and we export only about $50.4 billion, so we have to balance that with about $7 billion and talking to them here, they showed us that they can have a domestic market of about $11 billion and that is an incredible market and that will save Nigeria about $9 billion, a year from importing petroleum products. So, this is huge for Nigeria and even for Africa as a continent.”

 

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AMCON Seizes Ibadan Electricity Company

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AMCON Seizes Ibadan Electricity Company

The Assets Management Corporation of Nigeria (AMCON) has taken over the Ibadan Electricity Distribution Company (IBEDC) Ltd.

This was disclosed on Friday by the Chief Operating Officer, John Ayodele, in an internal memo to members of staff.

“Further, to the judgment wherein the Federal High Court on the 8th of September 2021 granted preservative orders in favour of Asset Management Corporation, AMCON, (being the Receiver/Manager of Integrated Energy Distribution and Marketing Limited); the court has appointed Mr Kunle Ogunba Esq.SAN to act as Receiver/ Manager Nominee in the receivership action,” Mr Ayodele said.

Mr Ayodele also disclosed that the receiver appointed, Mr Ogunba, had already held a meeting with the management staff.

The action follows the judgement by the Federal High Court on September 8, 2021, which granted orders in favour of AMCON as Receiver/Manager of Integrated Energy Distribution and Marketing (IEDM) Limited, IBEDC’s core investor, over defaults in a Loan Service Agreement with Polaris Bank.

READ ALSO: Appeal Court Rejects Jimoh Ibrahim’s Bid To Repossess Assets Seized By AMCON Over N70bn Debt

The takeover also includes the assets of IEDM, including shares and interests in related companies and entities, in addition to the monies kept in banks.

In 2018, the NERC in an order on June 19, 2018, directed IBEDC to commence the process of dissolution of its Board within 21 days period, citing alleged delay in the repayment of some loans by IBEDC investors.

The loan was granted by IBEDC from funds released to all DisCos by the CBN under the Nigeria Electricity Market Stabilisation Funds (NEMSF) for the purpose of improving the networks and reducing aggregate technical, commercial and collection losses.

The IBEDC, led by Tunde Ayeni, responded that the electricity company had completely fulfilled its financial commitments.

In response, the directors of the electricity company sued NERC for its decision to suspend them from the Board of IBEDC.

In July 2020, the Federal High Court in Abuja set aside the order from NERC that removed the Tunde Ayeni-led Board of Directors of the IBEDC.

 

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