The Best Defence For The Naira Is To Make Nigeria An Export-Based Economy —GTI

Economic analysts have stressed the need to grow nation's capacity for exports to prop up the value of the naira, which has remained under pressure since last year.

Analysts at GTI Securities Limited, in a report entitled 'CBN's tactical devaluation of the naira, what next?' said, "The best defence for the naira is to make Nigeria an export-based economy, so that the severe pressure on the local currency as a result of crude oil price volatility can be averted."

In a move to calm the foreign exchange market, the Central Bank of Nigeria had last week closed the Retail and Wholesale Dutch Auction systems. It said the action had become necessary following the sharp disparity between the official exchange rate and interbank rate of the naira, adding that all demand for forex should be channelled to the interbank market.

"By and large, we view the CBN's decision a bold and positive move and expect to see the naira exchange rate fluctuate to its market determined exchange rate level."

The CBN had, at the close of the Monetary Policy Committee meeting of November 25, 2014, devalued the naira and moved the exchange rate from N155/$ to N168/$1 and equally raised the asymmetric band from +/-3 per cent to +/-5 per cent.

The GTI report stated, "At this point, the plausible trading region of the naira to the US dollar in the interbank market was at a lower limit of N160 and upper limit of N176. Unfortunately, the naira closed at N176.20 that day, 20 kobo above the upper limit.

"It appeared that the CBN had kept faith in the belief that the rapid fall in the oil prices which has remained the sole driver of mounting pressure in the forex would likely halt in no distance time.

According to the analysts, this assertion confirmed the unanimous decision by the MPC to maintain universal status-quo in the January's meeting.

They observed that despite the fact that the naira was already high at N189.14 to a US dollar at the interbank market, the CBN's decision to leave the regime unchanged elicited a lot of comments.

They stated, "In our view, this decision of the CBN to scrap the rDAS/wDAS foreign exchange window is a technical way of re-pricing (devaluing) the naira against the US dollar.

"The CBN's particular interest here is to reduce the unavoidable depletion in the external reserves account as a result of continuing uncompetitive trading position of the naira to the US dollar. Note that the external reserves accounts closed on February 13 at $33.66bn, 5.24 per cent lower than end-December 2014 figure of $34.47bn."

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Reported by Femi Asu, for Punch Newspaper
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Nigeria Not Broke Says Yuguda, As Excess Crude Account Falls Under $3Billion

Minister of State for Finance, Mr. Bashir Yuguda has disclosed that domestic excess crude balance in the federation accounts stands at N19 billion while the excess crude account (ECA) remained $2.60 billion as at the end of January, 2015.

While fielding questions from reporters shortly after this month's Federation Account Allocation Committee meeting in Abuja on Tuesday The Federal Government has insisted that the country was not broke despite the headwinds militating economic growth in recent times.

To him, insinuation that the country is broke, is a political point made out of nothing.

Yuguda said in as much the country was meeting its financial obligations as a when due, it would be wrong to continue to make such unfounded insinuations.

"I don't know the issue of the country being broke, people should come up with facts and figures of what it means for a country to be broke", Yuguda challenged.

He lamented however, that recent measures put in place to boost revenue from non-oil sources are yet to yield desired results mainly because the non-oil sector are still linked to oil and gas which has been facing uncertainties.

According to the communique issued by FAAC after the meeting, the three tiers of the government shared total sum of N500.130 billion for February 2015.

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Electricity: Finland To Collaborate With Nigeria In The Area Of Power Supply

The Finnish Ambassador to Nigeria, Her Excellency, Ms. Pirjo Suomela-Chowdhury today [on Wednesday] held discussions with the Minister of State, Power, Hon.  Mohammed Wakil, with a view to ascertaining areas of possible collaboration between her country and the Government in the area of power supply.

The Ambassador, who expressed satisfaction with the on-going transformation in the sector, disclosed that she is ready to woo big time conglomerates from Finland, as they would soon come and join in the present administration's goal of more access to power for both the rural and urban dwellers.

She observed that, the prevailing security challenges being faced in the North East could adversely affect the investors' confidence as well as their willingness to come and invest in Nigeria.

While drawing analogy against the recent dogged fight against the Ebola scourge, the Envoy encouraged Nigerians to use the same zeal in the fight against pipeline vandalism which has become a menace hence the inability of the country to push-up power generation. Using the popular axiom, "where there is a way, there is a will", she urged Nigerians to tackle her problems frontally rather than blaming others.

Responding to the Envoy's presentation, the Minister of State, Power, Hon. Wakil said that Nigeria's interest in the development of renewable energy is informed by the dire need of President Jonathan's administration to address the lingering problem of energy mix. He said, now more than ever before, Nigeria is desirous of a robust energy mix as the country is not prepared to put all its eggs in one basket, by relying solely on one or two energy sources.

He observed that Nigeria is blessed with abundant resources in the renewables - small and medium hydros, biomass, solar and wind.  It is hoped that the Nigerian government will fast track the development of renewable energy sources by ensuring that these sources serve 70 percent of Nigerians residing in the rural areas that are far flung away from the national grid, and may not be connected soon because of insufficient resources.

To this end, he said, the target of the Nigerian government is to provide 30% of our electricity needs from renewables according to the vision 20-20-20 target, adding that government is considering a digital approach through the use of censors and camera detectors, adding that the plan of government to accelerate power output has been scuttled by persistent acts of vandalism.

Hon. Wakil assured the would-be investors from Finland that renewable energy is the way to go as it would be embraced by all in meeting the nation's energy needs.

He showed excitement on the capacity building package the envoy spoke about earlier and observed that such efforts will help to bridge the skill-gap that still exists in the power sector.

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PR Nigeria / Newsbeat Portal, Abuja
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Landmark: Apple Becomes First Company To Break $700 Billion Market Value

The United State Based Tech giant, Apple, has recorded another landmark by becoming only the first company in history to break through the market value of $700 billion.

Presently, Apple is worth $710 billion, this was as a result of her market Shares surging by over 1.9 percent to close at $122.02.

The U.S. tech giant recently posted record revenue of $74.6 billion (£49.2bn) for the three months to December 31, outstripping the quarterly GDP of Israel, Greece or Denmark.

Apple's cash pile is now $178 billion (£117bn), the equivalent to $556 for every American and bigger than the £95billion budget for Britain's National Health Service.

Mailonline.com reports that Its landmark performance was driven by record-breaking sales for its iPhone 6 and 6 plus, with the firm revealing it sold 34,000 handsets every hour for the entire quarter.

Apple chief executive Tim Cook, speaking at the Goldman Sachs Technology & Internet Conference, said Apple was hitting its stride.

'We've taken (the mobile operating system) iOS and extended it into your car, into your home, into your health. All of these are really critical parts of your life,' Cook said.

'We want one seamless kind of life.

'And so, I think that is huge for our future...We also did a lot of things to further our global footprint. And so, if you look at what we've done in China, we've opened more stores there.

'We've opened a lot more distribution there. Through the world, we've opened almost 20,000 new points of sale.

'We've opened 27 new Apple Stores, lot of flagship stores.'

Cook said Apple took some $50 billion in revenue in emerging markets over the past calendar year.

Brian White, analyst at Cantor Fitzgerald, said the leading tech company has even more room to grow.

'Given Apple's powerful iPhone cycle, a big 4G ramp in China and the upcoming launch of Apple Watch in April, we believe there is still plenty to look forward to at Apple during this transformational cycle,' he said in a note to clients.

'At the same time, we believe Apple's valuation has room to expand from depressed levels.'

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Primary Source: mailonline.com
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Nigerians Be Prepared: The Dollar Will Sell Above N220 After February Elections

The President, Association of Bureau de Change Operators, Mr. Aminu Gwadabe has added more pressure on the already weakened and devalued Naira by predicting that the Nigeria currency will take a very big hit after the February general elections.

The Naira has been under pressure since the fourth quarter of 2014 after the price of crude oil sales began to fall rapidly. And with elections campaigns reaching its highpoint within the next eight days, the naira is even in for more pressure and devaluation.

According to Gwadabe, "We cannot rule out the fact that politicians are fuelling the demand at the street market because most of them prefer to provide their gratification during this election period in dollars".

"And it is ... noteworthy to say that the CBN will devalue the naira again after the February elections. The reason is due to the falling oil prices and the current demand pressure we are witnessing on the dollar," he added.

Gwadabe, in his final summation, made a prediction: "after the elections, the naira will sell above 220 against the dollar at the parallel market."



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President Jonathan Receives Forensic Report On NNPC

The number one citizen of the Federal Republic of Nigeria, President Jonathan, yesterday received the forensic report carried out on the activities of the Nigerian National Petroleum Corporation.

The forensic report was presented to the president by an accounting firm referred to as PriceWaterHouse.

The PUNCH reports that the Nigeria Country Senior Partner of PriceWaterHouse, Uyi Akpata, ... presented the report to the President on behalf of the firm saying, "It is a privilege for us to have carried out this exercise on behalf of the government and I hope that you will find this report useful."

Reacting to the report he received, President Jonathan noted that the media, in particular, and Nigeria as a whole would be interested in the findings.

"...I am quite pleased that you have undertaken the forensic audit. Though it is voluminous, I will give it to the professionals, he said.

"In government work, there are people that have the statutory responsibilities to handle such assignment which is the Auditor-General of the Federation.

"So, the Auditor-General will look at it and within the week, let us have key highlights because the media will want to know the key findings vis-a-vis the Senate's findings and figures being bandied around in the newspapers."


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The Naira Is Likely To Be Steady Next Week On Dollar Sales By Oil Companies

The naira is likely to be steady next week on dollar sales by oil companies, while East African currencies are expected to be supported by central bank interventions, Reuters has reported.

The naira is likely to trade around its present levels next week on the back of expected month-end dollar sales by some energy companies and intervention by the central bank.

The local currency has remained volatile in the wake of falling oil price and the exit of offshore investors in local debt and equity last year.

The naira was trading around 189.90 to the dollar on Thursday, same level it closed a week ago. The naira was however weaker than its Wednesday's close of 186 after dollar sales from the Nigerian National Petroleum Corporation buoyed the currency.

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Source: The Punch
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Nigeria-China Trade Volume Exceeds $16bn In 2014 – Official

The trade volume between Nigeria and China in 2014 exceeded 16 billion dollar in 2014, Deputy Chief of Mission, Chinese Embassy, Mr Zhang Bin has said.

Zhang told the News Agency of Nigeria (NAN) on Thursday in Abuja that the figure exceeded that of 2013, which he put at 13.5 billion dollar.

According to him, China is currently the third largest trading partner of Nigeria adding, that the country is looking at possibilities of improving balancing of trade with Nigeria.

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We Withdrew N310 Billion From Excess Crude Account In Six Months, FG Discloses

The Federal Government withdrew a total sum of N310.05bn from the Excess Crude Account within the first six months of this year, a document obtained from the Budget Office of the Federation showed.

The PUNCH Reports that the 2014 second quarter budget implementation report jointly signed by the Minister of Finance, Dr. Ngozi Okonjo-Iweala, and the Director-General, BOF, Dr Bright Okogu, stated that the amount was used to settle various obligations of the Federal Government due to its inability to meet its revenue targets.

A copy of the report obtained by our correspondent on Sunday stated that the withdrawals for the first half of this year was significantly lower than the N1.257tn taken from the account within the first six months of 2013.

The ECA was set up in 2004 to serve as a stabilisation and savings account to protect planned budgets against revenue shortfalls due to volatility in crude oil prices.

By isolating government expenditures from oil revenues, the ECA aims to insulate the Nigerian economy from external shocks.
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Updated: My Friends Must Vote Launches Sunday, 21st Of December, 2014

My friend must vote 2015 is a non government organization with the aim of encouraging Nigerians to carry out their civil right by participating in the coming general elections #NIGgenElection and the subsequent ones.

We want people to understand that it is their civil right and responsibility to vote.

We have decided to start with people around our immediate environment and they are our friends from our work places to worship centres and our homes, ours streets.

We want people to know that democracy as come to stay in our dear country.

We want them to understand the importance of them voting as it is by this that we can get our voices heard and they also should demand from INEC credible,free and fair election come 2015 and in every election this country will always conduct.

The official launching is on sunday the 21st day of December, 2014, in Lagos State.

For more information, contact this Non-Governmental Organization below:

MFMV2015 is on twitter and facebook at @MFMV2015 and http://facebook.com/MYFRIENDSMUSTVOTE


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My Friends Must Vote Launches Sunday, 21st Of December, 2014

My friend must vote 2015 is a non government organization with the aim of encouraging Nigerians to carry out their civil right by participating in the coming general elections #NIGgenElection and subsequent ones.

To restructure e the minds of people against the held beliefs that their votes will not be counted as reported in previous elections of irregularities.

We [NGO] intend to let them see the importance of them voting as it is by this that they get their voices heard and they also should demand of INEC credible,free and fair election come 2015 and in every election this country will always conduct.

The official launching is on sunday 21 of dec, here in Lagos.

MFMV2015 is on twitter and facebook at @MFMV2015 and http://facebook.com/MYFRIENDSMUSTVOTE
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Breaking: Okonjo Iweala Presents 2015 Budget Before The National Assembly

Will the 2015 budget be presented this year ahead of the new year? What will be the benchmark for the 2015 budget? Will the president be presenting the budget to the National Assembly?

The above questions are no longer pertinent for the event of today at the National Assembly has put to rest all these speculation; because, on Wednesday, the 17th of December, 2014, the minister of Finance, Ngozi Okonjo Iweala finally presented the 2015 budget before the National Assembly.

The 2015 budget is estimated to the tune of about 4.3 Trillion naira.

Below is am excerpts of the report by Punch Newspaper:
Minister of Finance, Dr. Ngozi Okonjo-Iweala, has just presented the 2015 budget estimates of about N4.3trillion before the National Assembly.

She laid the document in separate appearances before the Senate and the House of Representatives.

There was not a joint sitting of the two chambers as has been the tradition, as President Goodluck Jonathan already delegated Okonjo-Iweala to present the estimates on his behalf.

http://talkafrica.co/ng/p/12700/breaking-okonjo-iweala-presents-2015-budget-to-national-asse
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Bank Charges Discouraging Use Of ATMs –NISER

The Nigeria Institute of Social and Economic Research on Tuesday called on the Central Bank of Nigeria to discourage all unnecessary charges by Deposit Money Banks for the use of Automated Teller Machines and Point of Sales Terminal.

The Director-General of the institute, Prof Olufemi Taiwo, stated this while unveiling the findings of a study conducted on the effects of cashless banking policy on the performance of informal business in Nigeria

Speaking in Abuja at the third annual ...

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Banks In Crisis, As Overnight Lending Rises By Over 44%

Exactly two weeks ago, the Central Bank of Nigeria's Monetary Policy Committee raised the Cash Reserve Ratio on private sector deposits from 15 per cent to 20 per cent.

The effect of the above action is now telling on banks seriously, as Deposit Money Banks are experiencing difficulties in raising adequate cash to meet their daily obligations and operations, investigation by our correspondent has revealed.

Officials of banks confirmed on Monday that the development had made the overnight lending rate of the Nigerian Interbank Offer Rate to rise to 44 per cent, down from around 13 per cent a month ago.

Click to read more...http://talkafrica.co/ng/p/9242/nigerian-banks-in-trouble-overnight-lending-now-44
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Crude Oil Price Falls Again, Now At $66

The international benchmark Brent crude on Monday was down more than four per cent to as low as $66.12 per barrel, its lowest level since 2009.

The United States' West Texas Intermediate also lost more than three per cent and cracking $64 per barrel for the first time since 2009.

Brent had recently tumbled below $70 per barrel after OPEC decision on November 27 to maintain production quotas. It hovered around $72 for the most of last week.

Keep Reading...http://talkafrica.co/ng/p/9148/more-trouble-for-nigeria-as-crude-oil-falls-to-66
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Anxiety, As Oil Marketers Ignore FG Fuel Import Allocation

Oil marketers have declined to go ahead with the importation of petrol for the fourth quarter despite the Federal Government's approval of the import allocation for the quarter.

Although a part of the subsidy arrears owed marketers had been paid by the government, oil marketers said they were unwilling to import more products owing to falling value of the naira to the dollar, coupled with the fear that subsidy arrears could be delayed again.

Continue With The Story...http://talkafrica.co/ng/p/9147/anxiety-as-oil-marketers-ignore-fg-fuel-import-allocation
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Oil Slump: Federal Government Vows To Protect Economy; And How Will They Do That?

The Federal Government on Monday vowed to protect the economy from any external shock that might arise from the global drop in oil prices.

It also warned that it would not allow "merchants of fear" to distort facts about the economy in order to sow any seed of hopelessness.

The Minister of Finance, Dr. Ngozi Okonjo-Iweala, stated this while speaking at the National Insurance Summit which was held in Abuja.

The summit, organised by the National Insurance Commission had the theme,

Full Story...http://talkafrica.co/ng/p/9146/oil-slump-fg-promises-to-protect-economy
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