Business Review for the Week

aso rock

As the economy of Nigeria is currently in the doldrums, investigations have continually revealed funds that have not been accounted for. Nigerians are hopeful that the commonwealth will recover.

NNPC did not remit N1.1tn in 2013-NEITI

The Nigeria Extractive Industries Transparency Initiative has accused the Nigerian National Petroleum Corporation of not remitting $3.8bn at the current rate of N197 to the dollar and N358.3bn to the federation account in 2013 in its latest audit report.

According to the report, the NNPC also received a total of $12.9bn from the Nigeria Liquefied and Natural Gas Company between 2005 and 2013 but did not remit anything to the Federal Government.

Foreign Airlines’ $575m trapped in Nigeria

The International Air Transport Association said that funds belonging to foreign airlines, which had been trapped in the country due to the Federal Government’s policy on foreign exchange stood at $575m as of March 2016.

The Association also bemoaned the high taxes imposed on air travelers in Africa, with Nigeria identified as one of the countries where the taxes were above global standards.

MPC reviews exchange rate policy

It was thought that the Central Bank of Nigeria’s Monetary Policy Committee meeting, held in Abuja, on Tuesday, would lead to the review of the naira exchange rate as economic recession looms over the country. But, the Central Bank of Nigeria has retained MPR at 12%, CRR at 22.5% and the Liquidity Ratio at 30% but still says it embraces flexibility in the foreign exchange market. Curious decision-making to say the least.

Economists like London-based Capital Economics John Asbhourne strongly suggest CBN and President Muhammadu Buhari should review the exchange rate policy with the continued low circulation of dollars. Buhari has chosen not to budge. Vice-President Prof. Yemi Osinbajo even said, two weeks ago, that the government believes “a more flexible” exchange rate policy is needed to stimulate the economy, it is not clear if the president shares that view.

lagos at night

ExxonMobil to claim damages against contractor

Mobil Producing Nigeria Unlimited, a subsidiary of ExxonMobil Corporation is set to seek financial damages against a drilling contractor for Conoil Producing Limited by the name Depthwize, which allegedly damaged ExxonMobil’s pipeline, thus halting significant production of the company’s Quadri Iboe grade of crude oil.

FG shopping for investors for National Carrier and Airport Concessions

The Minister of State for Aviation, Hadi Sirika said the absence of a strong carrier, lack of major Maintenance, Repair and Overhaul (MRO) facilities and inefficient airport operations were some of the strong reasons why the government was shopping for partners to invest their resources to recreate the sector.

The aviation sector is full of opportunities. The government would also partner with the private sector in areas of hospitality, hotels, resorts and logistics. The West and Central African market of more than 600 million people had no significant aviation businesses which makes it a big market waiting for exploitation.

AfDB Predicts slow economic recovery for Nigeria

Despite the GDP growth rate of -0.36% recorded in the first quarter of 2016. The African Development Bank has projected a real GDP growth rate of 3.8% for Nigeria by the end of the year and even painted a brighter outlook for the country in 2017 with a projection of a real GDP growth rate of 5%.