News Summary: Wednesday, November 26th, 2014 1. World Bank Controls 62% of Nigerias Public External Debt - ThisDay Data released by the Debt Management Office (DMO) has revealed that the World Bank Group controls a total of 62 per cent of Nigeria’s public external debt at end-September this year. Analysis of the data also revealed that the international capital market (ICM), where the federal government raised $1billion Eurobond has 16 per cent. Others are: bilateral lenders, 12 per cent, African Development Bank (AFDB), 8 per cent and 2 per cent by other lenders. The quarterly data from the DMO also showed that public external debt at end-September at $9.52 billion, equivalent to 1.9 per cent of revised 2013 gross domestic products (GDP). Analysts at FBN Capital who described Nigeria’s external debt burden as negligible, said the increase of $140 million over the previous quarter is divided between multilateral creditors (the World Bank Group) and bilateral lenders (China’s Exim Bank). thisdaylive/articles/world-bank-controls-62-of-nigerias-public-external-debt/195060/ 2. CBN acts In Bold Move To Curb Negative Speculation On Naira - Business Day In a move described by analysts as bold and audacious, the Central Bank of Nigeria (CBN) has moved to curb negative speculation on the naira by announcing a combination of rate hikes, tighter money policy and a devaluation of the currency. The Monetary Policy Committee (MPC) of the CBN met on November 24 and 25, against the backdrop of moderate but uneven growth in the global economy and a build up of vulnerabilities in the domestic economy from falling oil prices. Among the outcomes of the MPC meeting, was an increase in the Monetary Policy Rate (MPR) by 100 basis points, to a record high 13 percent, governor Godwin Emefiele announced to reporters yesterday in Abuja. The Central Bank also increased the cash reserve requirement on private sector deposits by 500 basis points, to 20 percent, and moved the midpoint of the official window of the foreign exchange market from N155/US$ to N168/US$. The trading band for the currency was also widened around the midpoint by 200 basis points, from +/-3 per cent to +/-5 per cent. businessdayonline/2014/11/cbn-acts-in-bold-move-to-curb-negative-speculation-on-naira/#.VHWlWzSsWVo 3. Manufacturing: Nigeria Ranks Low On Global GDP Index - National Mirror Nigeria is currently underperforming among its regional and global peers on industrial development index. Its manufacturing sector contribution to the Gross Domestic Products (GDP) in the last three years, according to the global manufacturing index has been put at 4 per cent, thus making it the lowest among the listed countries. The index shows that while it contributes only 4 per cent to the GDP, it employs only 2 million people. This is a far cry from the USA’s 13 per cent to the GDP with over 13 million people employed by the manufacturing sector. Brazil’s manufacturing sector, which employs over 15 million people, contributes 15 percent to the GDP. China is the highest with 30 per cent contribution to the GDP with an employment base of over 100 million people while its percentage of exports stands at over 90 per cent. Other countries include, India with 14 per cent contribution to the GDP with 30 million people employed. South Africa trails Nigeria with 15 per cent to the GDP with 1.5 million people employed. nationalmirroronline.net/new/manufacturing-nigeria-ranks-low-on-global-gdp-index/ 4. CBN Kicks Against FG’s $73 Budget Benchmark - Blueprint Central Bank of Nigeria (CBN) has kicked at the 2015 proposed oil price benchmark of US$73/barrel, describing it as “overly optimistic.” It argued that a weak public finance may impinge adversely on growth prospects as it shows up in reduction in critical public and private consumption and investment spending. The Monetary Policy Committee of the apex rose from its meeting yesterday voting for further tightening of monetary policy stance to anchor inflation expectations, and to allow some flexibility in the exchange rate to stem speculative activities and depletion of reserves. It therefore increased the Monetary Policy Rate (MPR) from 12 to 13%, and the Cash Reserve Ratio (CRR) for private sector funds from 15 to 20%, in order to save the naira which slumped to a record low of N180 to the US dollar in the interbank market last week. For two years running, the MPR had remained unchanged at 12%, while the CRR for private sector funds remained at 15% until yesterday. blueprint.ng/2014/11/26/cbn-kicks-against-fgs-73-budget-benchmark/ 5. Japanese Government Pledges More Support With Impactful Projects In Nigeria - The paper reports that the Government of Japan has pledged to continue its support for Nigeria by providing more impactful projects for citizens, especially those with unlimited access to life-saving facilities such as hospitals and schools for rural children who have hitherto been denied the opportunity of learning in conducive environments. 6. FG, Investors Seal $1bn Katsina Power Deal - Dailytrust The federal government yesterday signed a Memorandum of Understanding (MoU) with Strancton Limited for the construction and management of a 1,000 megawatts electricity project in Katsina State. The electricity project will be powered by gas from Niger Republic, expected to deliver 300 megawatts in the first phase and be completed in 30 months. First gas pipeline-fed electricity project in Northern Nigeria, it is being implemented with Katsina State Government, General Electric, Vellbridge Oil, Gas and Natural Resources Ltd among others present at the signing ceremony while Strancton Limited will partner on Private Finance Initiative (PFI). The project has about 30-months construction timeline. Chief Edozie Njoku, Chief Executive Offi-cer, Strancton Limited, said the company is proud to set the pace in energy revolution in Nigeria. Minister of Power, Prof. Chinedu Nebo, said it is a flagship project because the gas was being sourced from a neighbouring country. dailytrust.ng/daily/news/40457-fg-investors-seal-1bn-katsina-power-deal 7. FG Not Serious About Economic Diversification - NBCC - Vanguard The Nigerian-British Chamber of Commerce, NBCC, has accused the federal government of paying lip service to diversification of the Nigerian economy, saying all along, it “has been a long talk with little action”. Disclosing this at the 2014 NBCC presidential dinner and awards night, the President of NBCC, Prince Yemi Adefulu, said long before the current fall in oil prices, the NBCC has been asking government to do more than talk about the need to diversify the economy and it has been a long talk with little action. “The fall in oil prices have not yet reached the bottom. Having missed the opportunity of using cheap oil money to fund the diversification of the economy, government, in the light of crashing oil prices, will have to find the resources to walk its talk. The NBCC is proud of its export initiative” he said. vanguardngr/2014/11/fg-serious-economic-diversification-nbcc/ NPC Information Unit Room 415, 4th Floor Plot 421, Constitution Avenue, Central Business District, E-mail: [email protected] Website: nationalplanning.gov.ng
Posted on: Wed, 26 Nov 2014 17:24:44 +0000
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