New electricity tariff will over-burden Nigerians, says group
FRIENDS-In-Progress,
a non- partisan organisation comprising of Nigerians from all over the world
has called on President Goodluck Jonathan to look into the new electricity
tariff , which it described as over-burden on Nigerians.
In a statement made available to The Guardian, the
group insisted that any increase in the energy tariff should only be
contemplated when electricity generation and supply has improved substantially.
Also, it noted that it would only be meaningful
when at least 50 per cent of the old meters have been replaced with prepaid meters, which enables a more
accurate measurement of consumption.
The group alleged that the current system of
estimating usage is clearly unreliable, resulting in consumers paying more than
the electricity consumed.
They warned that the new tariff would place further
pressure on the finances of millions of already struggling families and
businesses and further alienate the people from a government, which they
believe has failed woefully in its sworn duty to protect them and improve their
living standards.
The organisation also called on the president to
stop the energy saving
bulb distribution project stating that providing free energy saving bulbs
should not be a priority for now, especially in the light of the millions of
naira that are likely to have been earmarked for the project.
According to the statement, “saving bulbs at this time will definitely be
considered as a pathetic and cynical attempt to band-aid the massive
ill-effects of government as government can ill afford to do this at a time
when a lot of work is being done to cut costs and reduce government spending.
“The
obvious solution would be for the relevant organisations within the sector to
encourage the use of the bulbs by educating the populace on the benefits and
advantages of energy conservation.
“It is
quite unbelievable that the government is even considering this increase when
the power situation has not improved, despite the billions of naira invested in
the sector,” the
group added.
The statement, therefore, advised the government to
encourage private sector-led Independent Power Projects (IPP) and invest in
improving the existing power infrastructure.
Once the electricity problem is resolved, they
insist, the Nigerian economy would naturally experience a massive revival and
this will reduce inflation and the dependence on foreign imports, while
reducing pressure on Forex reserves.
Chevron to address claims over rig fire incident
CHEVRON
Nigeria Limited, operator of the Nigerian National Petroleum Corporation
NNPC/Chevron Joint venture, has unfolded plans to address letters of claims it
received from lawyers and representatives of some communities in Bayelsa State
and beyond over its rig fire incident.
The incident occurred at Funiwa 1A natural gas well
on January 16, (about 10 kilometres) off the coast of Nigeria.
A statement from the spokesman of the company, Deji
Haastrup said that the company will address each claim on its own merit, adding
that an independent body, comprising of representatives of the NNPC, Chevron
Nigeria Limited, Bayelsa State government, Department of Petroleum Resources
(DPR) and Regional Development Committees (RDCs) of communities, is being set
up for the purpose.
Other participants include National Spill Detection
and Response Agency (NOSDRA) and Non Governmental Organisations (NGOs).
According to Haastrup, “the body will review all reports of environmental
and health assessment and evaluate each claim on its individual merit.”
“Chevron
has shared information about the incident and what caused it. The company has
engaged government officials, NGOs, and residents of communities, listening to
their concerns and explaining what happened and how the company is responding.
“CNL
operates with the highest safety standards in the industry and is committed to
operating in a safe and environmentally responsible manner. The safety of the
people and the environment is one of our priorities,” the statement added.
The company announced recently that it has sealed
and abandoned the shallow water Funiwa 1A natural gas well after completing the
drilling of a relief well.
It stated that production at the North Apoi field,
which had been shut in as a precaution, has also been restored and the field is
now producing approximately 2,000 barrels of oil
per day.
DPR, NCDMB seek compliance on expatriate quota, others
THE
Department of Petroleum Resources (DPR) and Nigerian Content Development and
Monitoring Board (NCDMB) have forged a partnership to ensure that compliance
with Nigerian Oil and Gas Industry Content Development (NOGIC) Act 2010 by
operators and oil service companies is met on expatriate quota management.
The collaboration, which is expected to be formally
endorsed by the Minister of Petroleum Resources, Diezani Alison-Madueke, will
see the two agencies hope to interface seamlessly, ensure industry compliance
with section 33 of the NOGIC Act, minimise incidents of abuse and ensure
optimal knowledge transfer to Nigerians from enforcement.
The committee is also to address the increasing
incidence of staff disengagement by operators and design partnership model for
critical information sharing between DPR and NCDMB to facilitate effective
regulation of the industry.
It was also decided that the Act would be a key
condition for participating in bid rounds and securing licenses, permits and
approvals in the industry.
Managements of the two agencies, who agreed to
ensure this at a meeting in Lagos recently, also set up a joint committee to
design an interface model with regard to common mandates related to Nigerian
Content development in the oil and gas industry.
The committee is expected to develop procedure for
operationalising sections 3 and 7 of the NOGIC Act, which provides that compliance
with Nigerian Content provisions, promotion of Nigerian Content development and
submission of Nigerian Content Plan will constitute conditions for the award of
licenses, permits and any other project in the oil and gas industry.
The Director of DPR, Osten Olurunsola commended
NCDMB for the numerous achievements it had recorded within two years of its
establishment, adding that Nigerian Content has been the shining light in the
industry within the period.
He called for close collaboration between the two
agencies, in a way that will be evident for stakeholders to see.
According to him, “when we are seen working together, people will find it difficult to play
one agency against the other and when we have issues, we will examine them.”
The Executive Secretary, NCDMB, Ernest Nwapa
maintained that the oil and gas industry can only make sustainable progress if
all agencies of government connected with the sector have a common
understanding.
“Once
there are conflicting signals from NCDMB, DPR and NAPIMS, there will be
problems. We want people from our offices to be acting on the basis of a common
understanding of the laws and government policies.
In a bid to build a common understanding for its
mandate, Nwapa said the Board had engaged several ministries, departments and
agencies connected with the oil and gas industry and Nigerian Content
implementation and had recorded immense successes.
Some of these MDAs include Ministry of Interior,
Ministry of Information and Technology, Ministry of Trade and Investment,
Central Bank of Nigeria, Bank of Industry, NIMASA, NDDC and NIPC.
He advised agencies of government against having
the erroneous impression that collaborating with each other will lead to
encroachment into their mandates, adding that any success recorded through such
efforts will always be jointly shared.
Stakeholders heighten concerns over declining oil reserves
STAKEHOLDERS
in the oil and gas industry have raised alarm over the declining fortunes of
the crude oil and gas reserves in Nigeria and called for quick passage of the
Petroleum Industry Bill to mitigate the slide.
At the first Energy Policy Strategy Session
organised by Emerald Energy Institute for Energy Economics, Policy and
Strategic Studies of the University of Port Harcourt, in Lagos, recently,
President of GWEST LLC Washington DC and a Visiting Scholar, Paul Michael
Wihbey brought into bold relief the huge opportunity costs and market share for
Nigerian crude oil and gas.
He noted that Nigeria for instance has declined
from being the third largest exporter of crude oil to the United States, to
being the sixth as of February this year, with volumes falling from over one
million in the late 1990s to just 350,000 barrels in February.
He attributed the decline to factors ranging from
uncertainties in the Nigerian environment as a result of the stalled reform
law, to new advances like shale oil, which have made available over one million
barrels a day in areas that had stopped producing oil in the U.S.
Wihbey also pointed out that Nigeria was not doing
enough to achieve its production potential and was in essence committing
economic suicide.
However, Chairman of Emerald Energy Resources
Limited and former Presidential Adviser on Petroleum, Dr. Emmanuel Egbogah,
countered that Nigerian crude oil and gas reserves was not about to finish and
that using Enhanced Oil Recovery (EOR) estimation techniques for reserves,
there could be 100 to 200 years more of production.
According to him, “Nigeria is already developing as it needs all the resources to develop
as the production to her optimum capacity gives Nigeria today’s money, which is critical because nobody knows
what value can be gotten from oil in the future, with advances in technology
and renewable energy.”
Egbogah had stated recently at an event that that
many exploration experts believe that for every five barrels of oil already
discovered to date throughout the world, some three more barrels are yet to be
discovered in currently producing fields, as well as the Deep Seas, the Arctic
and the Amazon basin.
This expectation, he said, can be extrapolated to
many largely unexplored areas of the Niger Delta and Inland/frontier basins of
Nigeria.
According to him, “these discoveries will lead to additional reserves of about 40 billion
barrels producible by conventional techniques, which brings the total
quantities of ultimate oil recovery in Nigeria to 106 billion barrels with a
grand total resources base of 302 billion barrels.
“This will
also bring the quantity of oil in Nigeria fields that represents the target for
EOR technologies to about 196 billion barrels,” he added.
Director of the Department of Petroleum Resources,
Osten Olorunsola, in his comments expressed concern that for the first time in
Nigeria’s history
there was an actual decline in reserve estimates between 2011 and 2012 and
wondered what will happen between 2014 and 2017 in terms of oil and gas
production, since no major investments have been recorded in exploration in the
last five years.
Olorunsola also noted that the trend in which
international oil companies divest from Nigeria and invest in East Africa is
not a good signal and calls for a buckling up on the part of Nigeria.
Other contributors, including Director-General of
the Nigerian Institute of International Affairs, Prof. Bola Akinterinwa
disagreed that unproduced oil was a disadvantage.
They argued that it was better to keep the oil in
the ground than for the proceeds to be frittered away by corrupt politicians.
Additionally, Akinterinwa opined that when Nigeria
becomes developed, it would need the raw materials and if they had been
depleted, industrialisation may be stunted.
Sterling Bank Plc sacks 400 workers
Sterling
Bank Plc has sacked 400 workers in a systematic mass retrenchment aimed at
reducing overhead cost.
Investigations showed that 97 per cent of the retrenched workers were
former staff of Equatorial Trust Bank Ltd. acquired by Sterling.
A source close to the bank said that the mass sack, which started about
three weeks ago would also affect another 150 workers because of the
consolidation of the two banks. He said that workers were thrown into the
nation’s
saturated labour market with only three months’ salary as severance package.
An Executive Management staff, who wants to remain anonymous said that
the retrenchment was their best option toward sustainable growth and return to
profitability.
He said that the workers were only victims of the economy, adding that
they had to relieve them of their jobs to grow the bank.
Yemi Adeola, the Managing Director of Sterling Bank had at a recent
annual general meeting, said that the business combination with former ETB had
improved its scale and size.
Adeola said that the combination allowed the bank to leverage on the
unique strengths of both banks to consolidate on overall market position.
According to him, 2012 would be another challenging operating year
following current difficult global and local macro economic conditions.
``We see clear opportunities for reducing the bank’s cost-to-income ratio and increase revenues as the
improved economic of scale arising from the business combination with ETB kick
in,’’ Adeola
said.
Meanwhile, Sterling Bank before the business combination grew its gross
earnings by 49 per cent to N45.2 billion in 2011 compared with N30.4 billion in
2010.
The operating income in the period under review increased by 32 per cent
to N27 billion from N20.4 billion in 2010.
Profit after tax increased by 11 per cent to N4.6 billion as against
N4.2 billion in 2010.
Diageo targets lower energy costs in Nigeria
U.K.-based
Diageo plc has contracted Clarke Energy, an authorised distributor and service
partner for GE Energy gas engines, to install turnkey combined heat and power
(CHP) plants at its Guinness breweries in Ogba and Benin City, Nigeria to lower
energy costs and increase production.
The
plants will each feature a natural gas-powered Jenbacher J620 gas engine and a
backup diesel engine from a different supplier.
GE on Tuesday announced the brewery CHP projects at the Africa Energy
Forum
2012 in Berlin, Germany.
Diageo, which was established by the merger of Guinness plc and Grand
Metropolitan plc in 1997, operates three Guinness breweries in Nigeria.
Its brand, Guinness Foreign Extra Stout, has been brewed in Nigeria
since 1962.
Nigerians drinks more Guinness than the brand's home country of Ireland,
making the country the world's second-largest market for Guinness, behind only
the United Kingdom.
The new Ogba and Benin City projects represent the fifth and sixth
Jenbacher CHP engines that Diageo has installed since 2008 at its Guinness
Nigeria plc brewing operations to help lower energy costs and help keep pace
with the steady growth in demand for its products.
In 2008, Diageo first installed a Jenbacher J620 cogeneration unit at
its Guinness Ogba brewery, where the system was connected to a waste-heat
boiler to produce steam for the brewing process. The second installation in
2010 was configured to use the exhaust heat directly into an absorption chiller
to provide a source of cooling for the plant. Also in 2008, Diageo installed
its first two Jenbacher J620 cogeneration systems at its Guinness Benin City
brewery. In addition to producing steam, the Benin City brewery's Jenbacher
unit was connected to an absorption chiller to create chilled water from the engine's
exhaust heat.
GE's Jenbacher Type 6 engines offer numerous advantages: reliability,
efficiency and robustness, with high power density and low installation costs.
In addition, the pre-combustion chamber layout helps the engine achieve maximum
efficiency with low emissions, while its unique design and optimized components
support an extended service life and reduce maintenance and overhaul costs.
Given the current price difference between natural gas and diesel fuel in
Nigeria, using gas to power a high-efficiency Jenbacher engine can save a
customer 78 percent compared to diesel fuel.
Henry Ohenhen, electrical/automation manager-Benin, Guinness Nigeria plc
noted that previous installations have increased Diageo's confidence in GE
Energy engines.
"GE's Jenbacher gas engines are supporting our efforts to
incorporate energy efficiency technologies to increase productivity. The
performance of our previously installed Jenbacher gas engines, in terms of
reliability, productivity and efficiency, has been tremendous," he said.
"The proven capabilities of GE's gas engines and Clarke Energy's
comprehensive, local after-sales service support have given us significant
competitive advantages, helping us to develop the most modern and advanced
breweries in Africa. This latest installation will help support our growth and
expansion goals."
The Ogba and Benin City breweries are expanding their existing CHP
plants to generate even more reliable electricity and steam while using
cleaner-burning, less-expensive natural gas as the primary fuel. The new,
ecomagination-approved Jenbacher J620 CHP units are scheduled to be fully
installed, tested and in operation by the first quarter of 2013.
"This is an opportunity to realize significant operational cost
savings, and we can typically expect a gas engine like the one being installed
in Lagos to pay for itself within just 18 to 24 months," said Patrick
Regan, global sales leader for GE Food & Beverage Solutions. "From a
financial point of view, the case to use gas as a primary fuel is hard to
dispute, given the current natural gas price point versus more traditional fuel
sources such as diesel. More breweries are choosing to install gas engines in
their facilities as a result of their increased reliability, efficiency and overall
return on their investments, not to mention the positive environmental impact
of cleaner emissions and reduced CO2 footprint."
In addition to showcasing GE's successful focus on the food and beverage
sector, the Diageo projects illustrate how GE's comprehensive suite of
distributed power solutions--ranging in size from 100 kW to 100 MW--are helping
customers worldwide to generate more reliable, on-site electricity and heat.
"With the upcoming installation of the latest Jenbacher system in
Ogba and Benin City, we are pleased to be able to support the long-term growth
of Diageo's iconic brands," said Alex Marshall, group marketing manager
for U.K. and Nigeria-based Clarke Energy, which provides full-service sales,
engineering, installation and maintenance services for GE's Jenbacher gas
engines product line.
Guinness Nigeria plc, a subsidiary of Diageo, was incorporated in 1962
and the following year opened its Ogba brewery in Ikeja, Lagos. Ikeja was the
first Guinness brewery to be built outside of Ireland and the United Kingdom.
Steady growth in Africa's demand for Guinness Stout and Harp Lager
prompted the opening of more breweries in Nigeria. In 1974, the company built
its second brewery--Benin City--that originally produced Harp but was later
expanded in 1978 to also make Guinness. In 1982, Guinness expanded its brewery
at Ogba to also brew both Harp and Guinness. In 2004, a third Guinness brewery
was opened at Aba in Abia State to further increase production capacity.
The CHP projects underscore how GE is helping Nigeria promote economic
growth, employment and educational opportunities. Aligning with Nigeria's goals
for growth through its Vision 2020 initiative, GE and the federal government of
Nigeria in 2009 signed a landmark "Country to Company"
agreement to foster partnerships and drive critical infrastructure
projects across the country.
Jonathan sends NNPC management packing
Andrew
Yakubu was yesterday named the new managing director of the Nigerian National Petroleum Corporation (NNPC)
after a rejuvenated president just back from Brazil, sent Austen Oniwon, its group managing director and three other
executive directors packing.
The action of government is seen as a bid to strengthen the ongoing
reforms and transformation of Nigeria’s petroleum sector, and in furtherance of efforts to achieve greater
transparency and accountability in government. It comes in the wake of the recent sack by president Jonathan of the
National security adviser, Andrew Owoye Azazi and minister of defence, Haliru
Bello.
The NNPC has been embroiled in many controversies in recent times ,
including its controversial role in the N1.7 trillion oil subsidy fraud; its
role in the early stages of the Petroleum Industry Bill (PIB) which is yet to
see the light of day; its failure to remit crude oil revenue to the Federation
Account and its general lack of transparency in its accounting system.
The statement announcing the sack of the management noted that Jonathan
commended them for their service to the nation and urged the new management to
cooperate fully with the new managing director.
The former Group Managing Director, Oniwon, and Michael Arokodare (outgoing Group Executive
Director (Finance and Accounts), Philip Chukwu, out-going Group Executive
Director (Refineries & Petrochemicals), and Billy Agha, out-going Group
Executive Director (Engineering & Technology) are to proceed on retirement.
President Jonathan has also approved the appointment of Victor Briggs as
the new Managing Director of the Nigerian Petroleum Development Company (NPDC).
Yakubu, an engineer, is an indegine of Kaduna State and a fellow of the
Nigerian Society of Engineers (NSE). He joined the NNPC in 1980 and has held
many positions in the corporation including been managing director of Warri
Refining and Petrochemicals Company, and Group Executive Director, Exploration
and Production.
Other members of the new management team include: Bernard O.N. Otti – Group Executive Director (Finance and Accounts);
Abiye Membere – Group
Executive Director (Exploration and Production); Peter S. Nmadu – Group Executive Director (Corporate Services);
Anthony Ogbuigwe – Group
Executive Director (Refineries & Petrochemicals); Attahir B. Yusuf – Group Executive Director (Commercial &
Investments) and David Ige – Group Executive Director (Gas & Power).
Commenting on the development last night, Oladiran Fawibe, chief
executive officer of International Energy Services, said that the appointment
of the new group managing director is a welcome development. He described him
as very competent with good understanding of the industry.
According to Fawibe, NNPC is not the problem of the industry, but the
various obstacles mounted by the federal government. He noted that unless NNPC
is allowed to operate as a commercial venture, the expected reform in the
industry will have no effect.
Nigeria fritters foreign reserves as Angola builds
Nigeria’s position as the country with the second largest
Foreign Exchange (FX) reserves in Sub- Saharan Africa (behind South Africa), is
in danger, as Angola is set to overtake it in the near future.
Angola, which produced around 1.7 million barrels per day (mbpd) of
crude oil in 2011, compared to 2.1 mbpd for Nigeria, has managed to increase
its FX reserves by 132.4 percent, from $12.5 billion in October 2009 to $33.1
billion in May 2012.
In the same period (2009 – 2012) Nigeria’s FX
reserves fell by 16.4 percent, moving from $45 billion to $37.6 billion.
“The difference between Angola and Nigeria is
obviously the direction in fiscal policy,” Samir Gadio, emerging markets strategist at Standard Bank London, said
in an e-mail reply.
“Unless the Sovereign Wealth Fund (SWF) is
effectively launched in the near term in Nigeria, and fiscal excesses and
inefficiencies (including the fuel subsidy) seriously addressed, Angola will
probably overtake Nigeria as the Sub-Saharan Africa country with the largest FX
reserves, excluding South Africa.”
Gadio notes that if fiscal savings in the Excess Crude Account (ECA) had
fully resumed in 2010 after the global economic crisis and other structural
imbalances had been tackled, Nigeria’s aggregate FX reserves would be hovering around $60-70 billion today,
suggesting leakages of over $30 billion.
“This would have helped smooth the boom and bust oil
cycles, restored Naira (NGN) confidence and ensured a more viable FX framework,” he said.
The prospect of Angola overtaking Nigeria in reserve accumulation is not
just symbolic, but highlights the damage the fuel subsidy scam and other fiscal
leakages are having on the country.
A detailed report by the House of Representatives ad-hoc committee on
fuel subsidy, recently alleged fraud totaling the equivalent of N1.07 trillion
(about $ 6.8billion). Payments totaling N2.6 trillion ($16 billion) in fuel
subsidies were made in 2011 through a fraudulent process, the committee said.
The ECA which contained $20 billion in 2007 now holds around $5 billion,
despite years of record oil prices.
The level of the external reserves is important for macro-economic
stability because the Central Bank of Nigeria (CBN) uses the reserves to defend
the local currency, and for attaining its price stability mandate.
“The CBN has been increasing its dollar sales at the
bi-weekly auction to $300 million from 04 June and to $400 million from 13
June,” FBN
capital analysts wrote in a note to clients on June 15.
Analysts say the CBN still has some ammunition ($37.2 billion of overall
FX reserves, including CBN reserves), that can be used to support the Naira, to
prevent a disorderly depreciation of the exchange rate.
However, they say if aggregate reserves were to fall to $30 billion, on
the back of falling oil prices, a devaluation would probably become
unavoidable.
Oil prices have slipped in recent months, from $110 a barrel to below
$80 a barrel on Monday.
“For the moment, it is the external risks that loom
large,” said
Razia Khan, in an email reply to BusinessDay.
“Even emerging from a period of relative strength in
oil prices, Nigeria’s FX
reserves have risen only very modestly to $37 billion.
In view of global risks, and Nigeria’s new susceptibility to potential outflows, much still needs to be done
to rebuild the economy’s
external buffers.”
The approval by state governors of the federal government’s proposal to launch the SWF would probably help
forestall that scenario by reducing leakages and bringing increased confidence
to the local currency.
“The council has agreed with the federal government
to go ahead to implement the Nigeria Sovereign Investment Authority with an
initial fund of $1 billion,” Rivers State Governor Rotimi Amaechi told reporters yesterday.
The SWF is to replace the ECA, where Nigeria saves oil revenues over a
benchmark budget price, currently $72 a barrel.
Nigeria was one of only three OPEC member states not to have a SWF.
The government has said the fund will provide a firmer legal basis to
ring fence Nigeria’s oil
savings.
It has three main aims: saving money for future generations, providing financing
for badly needed infrastructure, and starting a stabilization fund to defend
the economy against commodity price shocks.
Global mood, oil fears weigh on Nigeria markets - Analysts
Nigeria’s beleaguered naira, bonds and stock markets are
likely to see little relief in coming months, as jittery investors, worried it
could be hit by falling oil prices, continue to sell off positions. The naira
has lost 4 percent since April, as offshore investors exit bonds, while its
main stock index is struggling to rise much above its 21,000 point support
level.
The recent sell off has been spurred by fears that world oil prices
could fall below the $72 a barrel price on which the government has based its
2012 budget, Reuters reports. Oil, Nigeria’s main export commodity, has fallen to around $90, compared with its
peak of almost $126 earlier in the year, on concerns about a weak global
economy and crisis in Europe.
“The underlying problem is Nigeria’s great dependence ... on oil earnings. It cuts to
the heart of most investor exposure,” said Razia Khan, head of Africa Research at Standard Chartered. “For as long as there is concern that oil earnings
could be at risk, then Nigeria is unlikely to see a scaling up of foreign
portfolio investor flows,” she told
Reuters.
Nigeria was a darling of frontier investors, with one of the best
performing stock markets in 2006/07. At its 2008 peak, it traded $100 million a
day. Now it barely manages $16 million. Bonds too are seeing lower foreign
interest, with a resultant climb in yields - the most liquid three-year is
trading at 15.5 percent, up from 11.23 percent a year ago.
Traders say foreign investors are not panic-selling short term debt, but
that when it comes up for maturity, they are taking their money back, rather
than reinvesting it. Treasury bill positions that were being rolled over are
sold. Global markets are in generally cautious mood.
“The main reason for the exit (of foreign funds) is
higher global risk aversion ... stemming from concerns over Europe’s debt crisis and a weaker global economy,” said Stuart Culverhouse, chief economist at
brokerage firm Exotix. “This
flight to safety is not unique to Nigeria.”, he said.
It is not likely to change any time soon, however. “We can’t just expect the euro zone crisis to end in a few months, this is a
long-standing issue,” said
Samir Gadio, emerging market strategist at Standard Bank.
“It has the potential to result in intermittent
increased financial market volatility,” which would hurt Nigeria. Nigeria’s index is still trying to recoup losses of almost 17 percent, sustained
in 2011 - a 22 percent loss in dollar terms, thanks to naira weakness.
“Were oil prices to fall further to an average of
$80 through 2012/13, Nigeria’s current account surplus would narrow ... (and) ... an acceleration in
portfolio and other banking sector capital outflows is likely to gain further
momentum,” said
Andrea Masia, analyst at Morgan Stanley.
“This exodus of capital may also lead to significant
currency weakness, potentially forcing USD/NGN to 170 naira.” That might compel an adjustment of the central
bank’s 150-160
target band. Naira/dollar eased to a 22-week low of 163.68 two weeks ago, on strong
demand by investors repatriating funds, but bank intervention has since lifted
it to 162.45 naira to the dollar.
With foreign reserves of around $37 billion and a low debt to GDP ratio
of around 16 percent, Nigeria has some leeway to keep defending the naira at
current levels, but nobody knows how long it might have to do so.
Index
Summary
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BusinessDay
Afrinvest-30 Index
|
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26-Jun-12
|
25-Jun-12
|
change
|
|
Index
Points
|
1,062.43
|
1,062.31
|
0.01%
|
P/E
|
11.7x
|
11.7x
|
|
P/BV
|
1.8x
|
1.8x
|
|
Dividend
Yield(%)
|
4.6
|
4.7
|
|
BA-30
|
NSE ASI
|
||
YTD
change
|
7.28%
|
2.97%
|
|
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