Nigeria’s Foreign Exchange Reserves Drop To $30.69 Billion

Nigeria’s foreign exchange reserves have fallen by $940 million (N185 billion), a 2.97 percent from what was obtainable in August, the Central Bank has confirmed.

The reserves now stand at $30.69 billion – a short fall from $31.63 billion on the figures from a month earlier – and 22.42 percent less than it was in September 2014.

The central bank has been reported to have used the reserves to support the local currency, selling dollars to bureau de change operators.

This the apex bank does twice a week, in a bid to narrow the gap between the official and black market rates.

In August, the CBN indicated that foreign exchange reserves rose by $350 million (N70 billion) to $31.43 billion.

The sale of about $80 million by CBN on a weekly basis to BDC operators is aimed at narrowing the margin.

The reserves increase crossed the $30 billion mark in July, rising by 5.6 percent from $29.03 billion in June to $30.69 billion.

The dwindling experienced so far has been attributed to efforts of the present government to plug leakages and demand management by the apex bank.

The central bank restricted access to foreign exchange last month, introducing tight control of the foreign exchange market to curb speculation and conserves forex reserves.

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France To Invest €130m In Infrastructure Development In Nigeria

French President François Hollande Monday disclosed that his government has concluded arrangements to invest a total of €130 million in the development of infrastructure in Nigeria for rebuilding of roads, provision of electricity and water supply.

According to him, despite the fall in the price of crude oil in the international market which has affected Nigerian expected revenue, the country’s economy still remained strong.

“The Nigerian economy remains strong so, France wants to be doing business in the country” he said at a joint press conference at the Elsee Palace in Paris, after a closed door bilateral meeting with President Muhammadu Buhari who is on a three-day working visit to France.

He said France intends to increase the visibility of its investors more in Nigeria adding that his country will assist the Multinational Joint Task Force (MJTF) with intelligence gathering and equipment in fighting terrorism in Nigeria and the African sub region.

“We provide all of the support to the countries in the region which are affected by this cult and in Nigeria, we want to provide support and solidarity,” he noted thanking the President for relocating the
military command center to Maiduguri.

In his remarks, President Buhari thanked the French government for his government’s interest in assisting Nigeria and expressed the readiness of his administration to partner with France to development of the country.

President Buhari noted that with commitment from France, Nigeria’s next shopping list regarding support will move to other members of the G7.

“We have to depend on France and the other G7 countries for support to fight piracy” the President said adding “Our next shopping list is going to G7in terms of intelligence and training. Another problem is the problem in the Gulf of Guinea, from Senegal to Angola, that area is endowed with resources like petroleum and other minerals but surrounded by piracy and theft.

“We are going to depend on France and G7 countries to flush these criminals out of the region.” Adding that they had discussed the Memorandum of Understanding to build a €30M project solar power plant in a rural local government of Osun State capacity of the solar power plant is 10 to 14 megawatts.

Speaking further President Buhari said that “On Nigeria’s problems, more than 67 percent of our youths and most of them under their youthful age are unemployed. We are finding best way in Agriculture and mining to address this before sophisticated infrastructure and security are provided.

President Buhari and Hollande also discussed on issued of climate change which Nigeria is expected to contribute to at a global level. Both Nigeria and France last year signed last year bilateral agreements which enables the Frech government provide 1.170 Million dollars soft loan through the french development agency AFD for the construction of high voltage power lines and substations that will connect Abuja with electrical distribution network.

– Business day

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25 Companies Meets BPE Deadline for Submission of Bid to Acquire Power Distribution Companies

25 indigenous and international energy firms have met the July, 17 deadline for the submission of technical and financial proposal for the purchase of all the power distribution companies in Nigeria.
The Head of Public Communication of the Bureau of Public Enterprises BPE, Mr Chukwuma Nwokoh made this know in a press statement made available to newsmen today. The statement highlights the distribution companies as well as bidders who submitted proposals for them.
The privatization of the distribution companies is part of the strategies put in place by President Goodluck Jonathan under his power sector reform agenda to ensure the availability of power to all Nigerians. Below is a breakdown of the 25 companies which successfully submitted their technical and financial proposal.
Ughelli Power Plc had the most bidders, with nine potential investors meeting the deadline; Sapele Power Plc was next with six bidders and Shiroro Power Plc had the least number of bidders with one potential investor. Geregu Power Plc has four bidders; Afam Power Plc has three potential investors; and Kainji Power Plc has two bidders.
The bidders for Ughelli Power Plc are Feniks Electricity; NPG Consortium; Delta Utility Company Ltd; Transcorp & Woodrock/Symbion Power/Medea/PSL/Thomasen; and Botad/GE/13M Power Consortium. Others are Danglobe Consortium; Amperion Power Distribution Company; Ethiope Energy and Taleveras Group.
Foby Energy; Proton Energy Consortium; Ogorode Power Ltd; CMEC/Eurafric Energy Ltd; Dateline Power; and JBN/Nestoil Power Services Ltd are the bidders for Sapele Power Plc.
The four bidders for Geregu Power Plc are Knox J & L Energy Solutions Ltd; Plainfield Universal Technologies; TES Power Ltd; and Amperion Power Distribution Company Ltd.
For Afam Power Plc, the bidders are Primeniza Energy Ltd; Skipper Nigeria Ltd; and NPG Consortium.
The two bidders for Kainji Power Plc are Marubeni Corporation and Mainstream Energy Solutions Ltd.
The sole bidder for Shiroro Power Plc is North-South Power Co. Ltd.
It would be recalled that the revised timeline had July 17, 2012 as deadline for receipt of technical and financial bids from the potential investors.
The thermal power generating companies slated for privatisation are:
Ughelli Power Plc – situated in Delta area in South-South region of Nigeria with a total installed capacity of 972 MW;
Geregu Power Plc- situated in Kogi State in North Central Nigeria with a total installed capacity of 414 MW;
Afam Power Plc comprising of Afam I-V power stations located in Rivers State in South-South Nigeria with an installed capacity of 776 MW; and
Sapele Power Plc located in Sapele, Delta State in South-South Nigeria with an installed capacity of 1020 MW.
The hydro power generating companies are:
Kainji Power Plc comprising Kainji Power Plants and Jebba Power Plants located in Niger and Kwara States respectively in North-Central Nigeria; and
Shiroro Power Plc located at the Shiroro Gorge, Niger State in North-Central Nigeria.
Potential bidders/concessionaires for the generating companies, who should be existing local and/or international power generators or investors with power generators as long-term technical partners, will be responsible for operating the stations, improving the generation capacity and making the necessary investments in line with the objectives of the Federal Government of Nigeria set out in the National Electric Power Policy (NEPP.)
The next stage of the privatisation exercise is the harvest of the bidders’ technical and financial proposals which has July 31, 2012 as deadline for distribution companies.
The transaction timeline reveals that the evaluation of the technical bids will take place between August 14 and 28, 2012. The National Council on Privatisation (NCP) will approve the results of the technical evaluation on/or before September 11, 2012.
The deadline for the shortlisted bidders for generation companies to submit their letters of credit is September 18, 2012 while October 2, 2012 is for shortlisted bidders for distribution companies.
Consequently, NCP’s approval will pave way for the opening of financial bids of the shortlisted investors.
The BPE will, between September 25, 2012 and October 10, 2012, open the financial bids of prospective investors for the privatisation of the successor companies created from the Power Holding Company of Nigeria (PHCN.)
The announcement of the preferred bidder for the 17 successor companies by the National Council on Privatisation (NCP) will be made on/or before October 23, 2012.

 

 

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10 Nigerian Billionaire Oil Tycoons To Watch

The petroleum industry in Nigeria in the largest industry in the country and the main GDP generator in the continent’s most populous nation. Since the British discovered oil in the Niger Delta in the late 1950s, the oil industry has been crucial to Nigeria’s development. Marred by political and economic strife in the past, international attention in the 1990s saw a reform of the sector which has produced some of Africa’s richest men. Tom Jackson profiles ten of them below.

Theophilus Danjuma (South Atlantic Petroleum)

Danjuma, 72, has a net worth of $600 million made through the 2006 sale for $1.7 billion of an oil block he was given by the regime of former Nigerian President Sani Abacha to a Chinese consortium. A former defence minister, Danjuma is chairman of oil exploration firm South Atlantic Petroleum. He is also the country’s biggest philanthropist, having endowed his charity, the TY Danjuma Foundation, with $100 million. He also advises President Goodluck Jonathan on state matters.

Prince Arthur Eze (Oranto Petroleum)

Prince Arthur Eze is the Chairman and CEO of Atlas Oranto Petroleum International Limited, as well as holding positions on various other boards in different sectors across Nigeria. His company has secured significant upstream positions in frontier plays in Nigeria, Sierra Leone, Liberia, Togo, Ivory Coast, Chad, Cameroon and Equatorial Guinea. He is also a notable philanthropist.

His company has various technical partners, ranging from Roc Oil, Pioneer Natural Resources of the USA, Canoxy, Transworld of the USA, LukOil of Russia, Tetra, Noble, Kosmos Energy of the USA, Petronas of Malaysia, DNO of Norway, TransAtlantic Petroleum of the USA and Canada’s Nexen. He has been active behind the scenes on the political stage since the early 1990s.

Mike Adenuga (Conoil Producing)

The 59-year-old Mike Adenuga has a reputation as a reclusive tycoon, but his company Conoil Producing was the first Nigerian company to strike oil in commercial quantities in the early 1990s. It is now the country’s largest oil exploration firm, and Adenuga has a net worth of $4.3 billion. His other business interests include Globacom, the country’s second largest mobile telecom operator. Another tycoon to have hit big through links with a Nigerian president, in this case, Ibrahim Babangida, he made his first million at the age of 26 selling lace and distributing soft drinks.

Tonye Cole (Sahara Energy)

Cole is the Managing Director of Sahara Energy Resource Limited, which he co-founded in 1996 with his friends Tope Shonubi and Ade Odunsi. Sahara Energy started out as an oil and gas company whose core business at the time was the trading of excess fuel oil from the Port Harcourt and Warri refineries. It later moved away from being a middleman to become an established trading house diversifying into storage depots and vessel ownership as well as building depots in Lagos, Onne and Abuja with a combined capacity of 55,000 metric tonnes and a fleet of five vessels moving products across West Africa. Today, Sahara Energy is a major employer of labour with staff strength of just over 300 people.

Femi Otedola (African Petroleum/Zenon)

CEO of African Petroleum Plc (now Forte Oil Plc), Otedola appeared as one of only two Nigerians (the other was Aliko Dangote) to appear on the 2009 Forbes list of 793 dollar billionaires in the world, worth over $1.2 billion. Though his fortunes have slightly declined since, he remains a hugely rich man with much influence in the Nigerian oil sector.

He is also the owner of multi-billionnaira indigenous oil giant Zenon. Zenon, which is directly run by Otedola, is the dominant force in the diesel business among oil marketing concerns. It supplies diesel to power the generating sets of most Nigerian industries and nearly all the major manufacturing firms in the country. These include Dangote Group, Cadbury, Coca Cola, Nigerian Breweries, MTN, Unilever, Nestle, Guinness and others.

Tunde Folawiyo (Folawiyo Oil And Gas)

Folawiyo serves as the Managing Director of Yinka Folawiyo Power, and holds directorships with various other firms across all sectors. He lives his life away from the limelight, but is known to live in extreme luxury. He holds degrees from the London School of Economics and University College London.

Mohammed Indimi (Oriental Energy Resources)

A close ally of prominent figures in the Nigerian military, Indimi founded and now chairs Oriental Energy Resources, an offshore oil exploration and production company. It currently has three offshore oil and gas products, with daily production of 35,000 barrels. After over twenty years in the sector Indimi has established himself at the 30th richest man in Africa, with a notable international presence.

Ifeanyi Ubah (Capital Oil) 

A tycoon who is probably best known for taking out adverts on the front pages of major newspapers to herald the celebration of his 40th birthday, Ubah’s company, Capital Oil, is said to have the biggest and most modern depot in Nigeria. With 28 loading bays, Capital is the only indigenous downstream player capable of pumping out 55 million litres of petroleum products each day.

ABC Orjiakor (Seplat Petroleum)

A trained surgeon, Orjiakor has now worked in the oil and gas sector for over 25 years. At Seplat he spears new business development and works on strategic stakeholder relationships. He has his own philanthropic foundation, and had links with former president Babangida.

Phillip Ihenacho (Seven Energy)

Executive Chairman of Seven Energy, Ihenacho is also the co-founder of investment firm Amaya Capital Partners. A graduate of Harvard and Yale, he is a believer that local companies should be at the forefront of Nigerian oil exploration.

– Ventures Africa

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Zenith Bank Emerges Most Capitalised Bank in Nigeria

ZENITH Bank Plc has emerged Nigeria’s most capitalised bank, thus making it the biggest bank in Nigeria, seventh in Africa and 322nd in the world.

The bank in the 2012 global financial intelligence report published by The Banker magazine, an arm of the Financial Times of London is said to have a tier one capital of $2.398 billion as against the $2.405 billion of last year.

The report which was published earlier this month with a list of the world’s top 1,000 banks, used criteria such as tier one capital to measure strength, size in terms of assets base, soundness, profits margin, performance and returns on assets ratio criteria.

Nine other Nigerian banks were rated in the publication, including FirstBank Plc, Guaranty Trust Bank, Access Bank, United Bank for Africa, Diamond Bank, First City Monument Bank, Skye Bank, Fidelity and Stanbic IBTC Bank respectively.

According to The Banker, going by the Bank of International Settlement (BIS) measure, Zenith was the only Nigerian bank that attained the 1,000 soundest BIS ratio of 36.

Zenith ranked second in terms of assets, third based on capital assets ratio, second in the area of performance and return on assets, respectively.

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Top 10 Richest Women In Africa

(VENTURES AFRICA) – Typically, women in Africa have been seen as homemakers or agriculturalists, yet a new breed of empowered women across the continent have managed to forage a way in business, whether through family connections, governmental patronage or sheer entrepreneurship. Below, Tom Jackson profiles the ten richest females on the continent.

Mama Ngina Kenyatta

The widow of Kenya’s first president, Jomo Kenyatta, the former glamorous “mother of the nation” now leads a quiet, reclusive life away from the spotlight. Yet though she is not to be found on any African rich list, she has fabulous, mostly undeclared, wealth.

Mama Ngina, now 79, has gained huge respect from the Kenyan public for her defence and promotion of the family’s business interests. The Kenyatta family has investments in banking, education, farming, hospitality, insurance, manufacturing and real estate, though its presiding matriarch keeps a low profile.

Having stuck by Kenyatta even during his detention by the British colonial government, and defended the family’s business interests since his death in 1978, Mama Ngina now oversees a serious portfolio of brands and investments, including the largest privately owned Kenyan bank, the Commercial Bank of Africa (CBA), and the upmarket hotel chain Heritage. Brookside Dairies, East Africa’s leader in the dairy field with market share reaching from the region to the Middle East is another part of a vast investments empire which also includes media firm Media Max and Timsales Timber.

The latest move is in real estate, where Mama Ngina runs the rule over the construction of the 500-acre Northlands City, which will be the largest upmarket gated community in the region. Though alleged to have been involved with ivory smuggling in the 1970s, she is also engaged in many philanthropic activities. She has never revealed the full extent of her investments.

Isabel Dos Santos

Dos Santos, 39, is the oldest daughter of Angolan President José Eduardo dos Santos. The millionaire businesswoman is estimated to be worth over $50 million, with interests in oil and diamonds. She also has shares in Angolan cement company Ciminvest and the Banco Africano de Investimentos.

She is worth $170 million.

She originally made her mark in business at the age of 24 by using her father’s patronage to gain lucrative state contracts. She has fostered close business ties with Portugal, with her Maltese-registered investment firm holding a ten per cent stake in Portuguese media conglomerate Zon Multimedia. She also owns major stakes in Portuguese banks Banco Espírito Santo and Banco Português de Investimento, and in energy firm Energias de Portugal.

Hajia Bola Shagaya

The richest Nigerian businesswoman, Bola Shagaya has retained links with important figures in various administrations up to the present day and now enjoys a status as a queen of luxury. With interests in oil, banking, communications and photography, she has now also made steps into real estate, building hundreds of town houses for which renters pay $180,000 per year.

Owning properties in Europe and America, she has become one of the biggest players in the lucrative Nigerian oil sector. She is Group Managing Director/CEO of Bolmus Group International and a board member of Unity Bank Plc, while she has served on numerous board committees and currently sits on the board for the National Economic Partnership for Africa Development (NEPAD), a Nigerian business group. With over 24 years of active local and international business experience, she had participated in many local and international seminars and workshops, including the Harvard Business School to keep abreast of developments in management techniques.

Folorunso Alakija

Alakija is a 61-year-old Nigerian billionaire fashion designer and Executive Director of FAMFA Oil, the gas and oil exploration and production company.

After studying fashion design in the UK, she founded her fashion house Supreme Stitches in Nigeria in 1985 in Lagos, becoming the best designer in the country by 1986. Through a friend she became involved in the oil business, being allocated an unwanted oil bloc which later struck oil in commercial quantities and made Alakija’s fortune. This was achieved due to a hook-up with Texaco, which later became Chevron, in 1996.

She later became a more religious individual and now donates a lot of time and money to her Rose of Sharon Foundation, which provides interest free loans to start-up businesses.

Wendy Appelbaum

The only daughter of South African billionaire Donald Gordon, Appelbaum became a director of her father’s insurance and real estate firm Liberty Investors. Upon selling her shares she made her own personal fortune. Previously she was the Deputy Chairman of Women’s Investment Portfolio Limited (Wiphold), the first women’s controlled company to list on the Johannesburg Securities Exchange with then assets in excess of R1 billion. Moneyweb calls her the wealthiest woman in Africa.

In tandem with her husband Hylton, she used these funds to purchase DeMorgenzon, a wine estate in the famous wine region of Stellenbosch. She has in total donated US$23 million to found the Gordon Institute of Business Science and the Donald Gordon Medical Centre, in memory of her father, while she also chairs the South African Women’s Professional Golfers’ Association.

Wendy Appelbaum’s net worth as of early 2012 is estimated at $259.3 million.

Wendy Ackerman

Retail tycoon Ackerman is worth $190.2 million, with the Ackerman Family Trust run by her and her husband owning about 50 per cent of the major South African grocery chain Pick ‘n’ Pay. The $3 billion company owns outlets in Mozambique, Nigeria, Namibia, Zambia, Zimbabwe and Australia, with Ackerman acting as Executive Director.

Bridget Radebe

The founder of Mmakau Mining, the successful mining firm with assets in gold, platinum, uranium, coal, chrome and exploration, Radebe started out by working in mines herself. Now the president of the South African Mining Development Association, she is the older sister  of South African billionaire Patrice Motsepe and married to South Africa Justice Minister Jeff Radebe.

She was the first black woman in the country to found her own mining company, overcoming racial and gender prejudice. While her net worth is large, it is currently not published. Radebe received the International Businessperson of the Year Award in 2008 from the Global Foundation for Democracy.

Sharon Wapnick

Worth $43.1 million, Wapnick is one of the largest individual shareholders in listed loan stock companies Octodec Investments and Premium Properties, which were both founded by her father Alec. She is also a partner at TWB Attorneys, a Johannesburg-based commercial law firm. Her fortune was made in investments and real estate.

As of October 2011, Wapnick stepped into the role of non-executive chairman of Octodec, replacing her father. An attorney, she also has a wealth of experience in the property industry.

Elisabeth Bradley

Bradley, whose father Albert Wessels brought Toyota to South Africa in 1961, enjoys a net worth of $32 million as a result of her investments portfolio. In 2008, Wesco Investments, the holding company that she chairs, sold its 25 percent stake in Toyota South Africa to Japan’s Toyota Motor Corp for $320 million, with Bradley pocketing at least $150 million.

As well as remaining chairman of Wesco Investments, she is also vice-chairman of Toyota South Africa Limited, a director of AngloGold and board member at blue chip companies such as Standard Bank Group, Hilton Hotel and Roseback Inn.

Irene Charnley

Charnley, 52, is a former trade unionist who has amassed a net worth of $150 million. Currently the CEO of Smile Telecoms, a telecommunications products company working out of Mauritius, she first made a mark as a negotiator for the National Union of Mineworkers in South Africa. Later she became Executive Director at MTN, Africa’s largest teleco.

At MTN she led the company’s expansion across Africa and beyond, helping to acquire licences from Nigeria to Iran. She was as a result rewarded with MTN stock worth $150 million, though she left the company under controversial circumstances in 2007. She has also been a director of FirstRand Bank, Johnnic and Johnnic Communications.

Her current company, Smile Telecoms, helps lower-income individuals to have telecommunications and continues a line of anti-poverty programs Charnley began at MTN.

 

 

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Coca-Cola Pulls The Plug On Ronaldnho’s Endorsement

 Former Brazilian star midfielder’s decision to have a sip of Pepsi at a press conference cost him dearly as rivals Coke pulled the plug on his endorsement deal.

The former Barcelona man had himself to blame for his pocket being $760,000 lighter. Coke released Ronaldinho for giving Pepsi the advertisement they were paying for.

However Coca Cola marketing chief Marcelo Pontes said it was just a matter of time before Ronaldinho was given the boot.

“The fact that the player has appeared with a can of Pepsi was the straw that broke the camel’s back,” Pontes told O Estado de Sao Paulo.

The playmaker who made his name playing for the Catalan club, has had a torrid few years. He had to change clubs, shifting from Flamengo to Atletico Mineiro after receiving stick from the home fans.

This is not the first time a situation like this has taken place. Pop singer Britney Spears was removed from the Pepsi payroll after she was caught on camera drinking a Coke.

 

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Tiger Brands Signs Pact With Dangote to Acquire Shares In Dangote Flour Mills

South Africa giant, Tiger Brands Limited, following an earlier indication to acquire a shareholding in one of Dangote industries subsidiaries has announced that it has reached an agreement in principles with Dangote Industries Limited to acquire 63.35% of the total ordinary issued share capital of Dangote Flour Mills Plc, a public company, listed on the Nigerian Stock Exchange.

In a statement by the company, it said the proposed terms of the Potential Transaction are encapsulated in a share sale and purchase agreement (‘SSPA’), which has been presented to the Securities and Exchange Commission for consideration and approval in accordance with the regulatory requirements in Nigeria.

Before the Parties are able to sign the SSPA, the Potential Transaction and its terms have to be considered and approved by the SEC, in accordance with the regulatory requirements in Nigeria.”

The Potential Transaction upon the approval of SEC will lead to both parties signing the SSPA and the consumation of the deal.

“Upon signature by the parties of the SSPA, Tiger Brands will release a full announcement regarding the terms of the Potential Transaction; implementation of the Potential Transaction will be subject to the fulfilment of certain conditions precedent, including approval of the Exchange Control Division of the South African Reserve Bank,” the statement said.

The company then advised its shareholders to continue to exercise caution when dealing in the Company’s securities until a further, more detailed announcement is made.

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Nigeria Sells N134.5 Billion Worth of Treasury Bills

The Central Bank of Nigeria, CBN has revealed that Nigeria has sold a total of N134.56 billion in treasury bills
with maturities ranging from three months to one year at its bi-monthly auction.

The bills were sold with yield performance at a higher percentage than the previous auction.
Africa’s second biggest economy, Nigeria issues treasury bills regularly to reduce the money supply, curb inflation
and help lenders manage their liquidity.

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Nigeria Records Highest Borrowing Costs In 5 Years

(VENTURES AFRICA) Nigeria’s Debt Management Office is set to offer 83.9 billion naira ($515 million) in debt, including 30 billion naira of 15.1 percent bonds due 2017 – the Oil-rich nation’s highest borrowing cost in five years.

This was made known in a statement posted on the Debt Management Office’s official website. According to the statement, the debt office is incurring the debts on concern of the current pace of inflation which is approaching the fastest in more than two years.

On Thursday, the office will offer debts and bonds that are due in 2017 to members of the public.

According to current prices on the Financial Markets Dealers Association website, yields on the existing 2017 notes had hit a record high of 15.71 percent on June 25.

In May, Nigeria’s inflation rate slowed to 12.7 percent from 12.9 percent in April; however, the rate is expected to peak at 14.5 percent in the third quarter of 2012. According to the Central Bank of Nigeria (CBN), this will be the highest inflation rate since April 2010.

The banking sector’s policy makers led by CBN Governor Lamido Sanusi have held the benchmark interest rate at 12 percent this year from a 5.75 percent point-raise in 2011, in order to curb the naira’s decline and to combat the rising inflation rate.

Analysts and strategists across the continent are concerned about Nigeria’s current economic status.

“Inflation risk remains the blemish,” Dumisani Ngwenya, a Johannesburg-based Africa strategist at Barclays Plc’s Absa Capital, said in e-mailed comments sent to Bloomberg. However, there isn’t need for panic because according to Ngwenya, the dip in price growth in May is probably temporary.

According to Tola Odukoya, an analyst at Dunn Loren Merrifield Ltd. in Nigeria business hub, Lagos, the key factor driving the yields up is the sustained pressure on the local currency as a result of foreign investors’ profit-taking and moving their funds out of the market.

“We expect the yields of all the bonds to come out higher than that of the previous auction,” he said.

The rise in inflation rate could be linked to recent economic policies that were implemented in Nigeria. One of such is the inflation resulting from the increase in the pump price of gasoline due to the partial withdrawal of fuel subsidies in January. This has led to an increase in the pump price of gas from 65 naira in January to 97 naira a litre (0.26 gallon).

The economy has also been hit by a worldwide oil price plunge. As a result of the plunge, Nigeria’s benchmark blend (Bonny Light crude) has dropped 28 percent from a March 13 peak of $128.47 per barrel to $92.50.

The naira, which was Africa’s best-performing currency against the dollar in the first five months of 2012, has also been affected. The currency is now down 0.2 percent, currently trading at 162.65 naira per Dollar in Lagos, Nigeria’s commercial capital.

In the same vein, Nigeria’s foreign reserves have recorded a deficit of $612 million to $37.1 billion as the apex bank has increased dollar sales at twice-weekly currency auctions, and directly to the market to defend the naira.

Nigeria is a nation of 150 million people and it depends on crude oil exports for more than 80 percent of government revenue and 95 percent of foreign currency income. According to the statistics office, crude oil accounts for 83 percent of Nigeria’s total exports in the fourth quarter.

 

 

 

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With £54.4m, Floyd Mayweather Jr Dethrones Tiger Woods’ On Forbes List Of World Richest Sportsman

Boxing champion Floyd Mayweather Jr. has ended Tiger wood’s ten year reign as the highest earning athlete on forbes list.

Floyd Mayweather Jr. “Money fought twice during the past 12 months, knocking out Victor Ortiz in September and winning an unanimous decision in May against Miguel Cotto.  Read more

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