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FG Unveils Economic Recovery Plan

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FG Unveils Economic Recovery Plan

FG Unveils Economic Recovery Plan

By Modupe Gbadeyanka

Federal Government has released an economic recovery plan, which it aims to lead Nigeria out of recession.

The plan, released on Tuesday by the Minister of Budget and National Planning, Mr Udoma Udo Udoma, is tagged ‘Economic Recovery and Growth Plan (ERGP) 2017-2020.’

The Minister, in a statement issued by his media aide, Mr Akpandem James, said he expects the economy to climb out of recession and grow 2.19 percent this year.

He said further that the economic plan focuses on achieving macroeconomic stability and economic diversification by undertaking fiscal stimulus, ensuring monetary stability and improving the external balance of trade.

Mr Udoma said government eyes self-sufficiency in rice by 2018 and in wheat by 2019 or 2020, and hopes to be a net exporter of rice, cashew nuts, groundnuts, cassava and vegetable oil by 2020, according to the plan.

According to Mr Udoma, the ERGP targets increase in export earnings and government revenues by an additional N800 billion a year, while oil production is expected to rise to 2.5 million barrels per day and for Nigeria to become a net exporter of refined petroleum products by 2020.

The FG also said it expects to earn N35 billion from the sale of some national assets, including oil joint ventures, and reducing stakes in other oil and non-oil assets, while it would review and possibly remove a ban on accessing foreign exchange for 41 goods and services.

According to the Minister, the FG expects its tax collection to improve by N350 billion per annum, in part, by boosting a luxury goods tax to 15 per cent in 2018 from its current rate of 5 per cent.

The goal is to increase the overall tax to GDP ratio to 15 percent from 6 percent between 2017 and 2020.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Economy

Oil Prices Rise as Earthquakes Hit Turkey, Syria

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oil prices cancel iran deal

By Adedapo Adesanya

Oil prices rose on Monday, buoyed by supply concerns following earthquakes in Turkey and Syria.

Brent crude futures rose 46 cents or 0.6 per cent to $80.40 a barrel, as the United States West Texas Intermediate (WTI) crude futures jumped by 20 cents or 0.3 per cent to $73.59 a barrel.

Massive earthquakes that struck Turkey and Syria on Monday halted operations at Turkey’s major oil export hub in Ceyhan and stopped key crude oil flows from Iraq and Azerbaijan, officials said.

It has been regarded as the worst tremor to strike Turkey this century and was followed in the early afternoon by another large quake of magnitude 7.7.

The Tribeca shipping agency said in a notice that the BTC terminal at Ceyhan that exports Azeri crude oil will be closed through Wednesday pending damage assessments. Azerbaijan uses the Turkish port of Ceyhan as its main crude export hub, with a flow of about 650,000 barrels per day.

According to Reuters, following Monday’s earthquake, Iraq’s Kurdistan Regional Government (KRG) also halted flows through the pipeline it operates that runs from Iraq’s northern Kirkuk fields to Ceyhan, the region’s ministry of natural resources (MNR) said.

The KRG had been pumping 400,000 barrels per day, and Iraq’s federal government was pumping 75,000 barrels per day through the pipeline.

It was also reported that oil exports would resume after a “careful inspection of the pipelines is finalised,” the MNR said in a statement.

Also supporting prices was the prospect for China’s recovery after the relaxation of COVID-19 restrictions continued to drive the value of the commodity.

The International Energy Agency (IEA) expects half of this year’s global oil demand growth to come from China. The agency’s chief, Mr Fatih Birol, disclosed this on Sunday, adding that jet fuel demand was surging.

“If demand goes up very strongly, if the Chinese economy rebounds, then there will be a need, in my view, for the OPEC+ countries to look at their (output) policies,” Mr Birol said, referring to a call of action for the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, OPEC+.

The 23-man group decided to cut output by 2 million barrels a day from November through 2023 instead of pumping more to cut fuel prices and help the global economy, as the US advised.

Also, price caps on Russian products took effect on Sunday, with Group of Seven (G7) nations, the European Union and Australia agreeing on price limits of $100 a barrel on diesel and other products that trade at a premium to crude and $45 a barrel for products that trade at a discount, such as fuel oil.

The price ceilings, together with an EU ban on Russian oil product imports, are part of a broader agreement among the Group of Seven (G7) countries. It follows a $60 per barrel cap on Russian crude that G7 countries imposed on December 5 as the G7, the EU and Australia seek to limit the country’s ability to fund its war in Ukraine.

Both caps prohibit Western insurance, shipping and other companies from financing, insuring, trading, brokering or carrying cargoes of Russian crude and oil products unless they were bought at or below the set price caps.

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Economy

NGX Upgrades Price Stock Group of Eterna

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price stock group of Eterna

By Dipo Olowookere

The price stock group of Eterna Plc has been moved upward by the Nigerian Exchange (NGX) Limited, Business Post reports.

In a regulatory notice on Monday, the bourse noted that it upgraded the stock category of the energy company from a low-price stock group to a medium-price stock group.

This action, according to the exchange, was necessitated after the stability in the price of the company’s equities within four of the last six months in the new price category, in line with its price methodology framework.

“Equity securities of quoted companies on the exchange (NGX) are classified into three stock price groups or categories; high-priced, medium-priced, and low-priced stocks, based on their market price.

“In this regard, securities must have traded for at least four out of the most recent six-month period within a stock price group’s specified price band to be classified into the category.

“Accordingly, a review of Eternal Plc stock price and trade activities over the most recent six-month period provides the basis for reclassifying the security from the low-priced stock group to the medium-priced stock group.

“This reclassification also necessitates the attendant change in the tick size change from N0.01 kobo to N0.05 kobo, in line with Rule 15.29: Pricing Methodology, Rulebook of the exchange, 2015 (trading license holders’ rules),” the statement from the platform stated.

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Economy

Unlisted Securities Investors Gain N18.29bn in Five Days

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unlisted securities investors

By Dipo Olowookere

It was another positive week for unlisted securities investors in Nigeria as they smiled home with N18.29 billion last week on the floor of the NASD over-the-counter (OTC) Securities Exchange.

This was buoyed by the 1.98 per cent week-on-week growth recorded by the alternative bourse in the country during the five-day trading week, which had five stocks closing on the gainers’ chart, with none on the opposite table.

Data harvested by Business Post indicated that FrieslandCampina Wamco Nigeria appreciated by 10.44 per cent to settle at N69.00 per unit. UBN Property Gain 7.14 per cent to trade at 75 Kobo per share, Niger Delta Exploration and Production improved by 6.95 per cent to N200.00 per unit, Geo-Fluids rose by 6.12 per cent to N1.04 per share, and Central Securities Clearing System (CSCS) increased by 3.85 per cent to N13.50 per unit.

In the week, the volume of trades declined by 35.51 per cent to 24.5 million units from 62.6 million units, the number of deals went down by 12.82 per cent to 66 deals from the preceding week’s 71 deals, while the value of transactions increased by 122.48 per cent to N96.6 million from N87.6 million.

The most active security for the week by volume was Geo-Fluids, with the sale of 20.0 million units, followed by UBN Property with 3.4 million units. FrieslandCampina traded 581,021 units, CSCS transacted 375,512 units, and VFD Group exchanged 111,104 units.

However, the most active equity by value for the week was FrieslandCampina, with a sale of N38.5 million. VFD Group recorded N27.2 million, Geo-Fluids traded N20.7 million, CSCS transacted 5.1 million, and UBN Property traded N2.6 million.

Data showed that the NASD unlisted securities index (NSI) increased in the week by 13.92 points to 717.15 points from 703.23 points, as the market capitalisation grew by N18.29 billion to N942.35 billion from N924.06 billion.

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