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  • Again, Nigeria Exits Recession

    Again, Nigeria Exits Recession

    Nigeria’s Gross Domestic Product (GDP) grew by 0.11% (year-on-year) in real terms in the fourth quarter of 2020, representing the first positive quarterly growth in the last three quarters.

     

    This is contained in the Nigerian Gross Domestic Product report, published by the National Bureau of Statistics (NBS).

     

    According to the report, the growth was largely driven by positive growth recorded in the information and communication sector (15.9%) and agriculture (3.42%).

     

    Highlights

    The oil sector plunged by 19.76% (year-on-year) in real terms as against a contraction of 13.89% recorded in Q3 2020.

     

    The non-oil sector on the other hand grew by 1.69% in real terms, an improvement compared to the contraction of 2.51% recorded in Q3 2020. It however was slower than 2.26% recorded in the corresponding period of 2019.

    The service sector contributed 54.28% to the GDP in Q4 2020, followed by agriculture, which contributed 26.95%, and industries with 18.77%.

     

    Non-oil accounted for 94.13% while the oil sector accounted for 5.87% of the total GDP for Q4 2020.

     

    Oil sector

    The oil sector contracted by 19.76% (year-on-year) in Q4 2020, a downturn compared to a similar contraction of 13.89% recorded in the previous quarter (Q3 2020).

     

    It also represents a decline of 26.12% points when compared to a positive growth of 6.36% recorded in the corresponding period of 2019.

     

    The sector’s contribution to Nigeria’s GDP also reduced to 5.87% in Q4 2020 from 8.73% recorded in Q3 2020 and 7.32% in Q4 2019.

     

    In Q4 2020, average daily oil production of 1.56 million barrels per day (mbpd) was recorded, representing a 6.59% and 22% declines when compared to 1.67mbpd and 2mbpd recorded in Q3 2020 and Q4 2019 respectively.

    The decline in the oil sector activity can be attributed to the crash in global crude oil prices, which was triggered by the oil price war between Saudi Arabia and Russia.

     

    Non-oil Sector

    The non-oil sector grew by 1.69% in real terms in Q4 2020, slower than the 2.26% recorded in the corresponding quarter of 2019, but better than the 2.51% negative growth rate recorded in the preceding quarter.

     

    Growth in the sector was largely driven by Information and Communication (Telecommunications & Broadcasting).

     

    Other drivers were Agriculture (Crop Production), Real Estate, Manufacturing (Food, Beverage & Tobacco), Mining and Quarrying (Quarrying and other Minerals), and Construction.

     

    In real terms, the Non-Oil sector contributed 94.13% to the nation’s GDP in the fourth quarter of 2020, higher than the share recorded in the fourth quarter of 2019 (92.68%) and the third quarter of 2020 (91.27%).

     

    Key sectors’ performance

    The agricultural sector, in the fourth quarter of 2020, grew by 3.42% (year-on-year) in real terms, an increase by 1.11% points from the corresponding period of 2019, and an increase of 2.03% points from the preceding quarter which recorded a growth rate of 1.39%.

     

    The sector also contributed 26.95% to the overall GDP in real terms in Q4 2020, higher than the contribution in Q4 2019 but lower than Q3 2020 which stood at 26.09% and 30.77% respectively.

     

    Real GDP growth in the manufacturing sector in the quarter under review stood at –1.51% (year on year), lower than the corresponding period of 2019 and the preceding quarter by 2.75% points and 0.01% points respectively.

     

    The real contribution to GDP in Q4 2020 was 8.60%, lower than the 8.74% recorded in the fourth quarter of 2019 and 8.93% recorded in Q3 2020.

     

    In real terms, the Trade sector contracted by 3.2% (year-on-year) in the fourth quarter of 2020, which was 2.62% points lower than the rate recorded in Q4 2019, and 8.92% points higher than in the preceding quarter.

     

    Trade’s contribution to GDP was 15.46%, which is lower than the 15.99% it represented in the corresponding period of 2019, but higher than the 13.88% recorded in the previous quarter.

     

    Information and communication recorded a growth rate of 14.95% in real terms, an increase of 6.45% points over the corresponding period of 2019.

     

    The sector contributed 15.06% to aggregate real GDP in Q4 2020, higher than the same quarter of the previous year in which it represented 13.12% and higher than the preceding quarter, in which it represented 13.47%.

     

    What this means

    The positive growth in real GDP indicates that the Nigerian economy has recovered from the pandemic-induced recession which disrupted economic activities in most part of 2020. The country will look to post capitalise on this to boost the economy further in subsequent quarters.

  • How Banks Are Turning Female Marketers To Sexual Slaves – Senator

    How Banks Are Turning Female Marketers To Sexual Slaves – Senator

    The Senate, on Thursday, considered a bill seeking to stop employers in the private and public sectors from engaging employable Nigerian graduates as casual workers.

     

    The Prohibition of Casualisation Bill 2020 was sponsored by Senator Ayo Akinyelure.

     

    Akinyelure said casualisation of Nigerian graduates in the Nigerian labour market had become a subject of great concern.

     

    He said more workers continued to groan under this immoral strategy of cutting cost by employers rendering them inferior to their counterpart in other countries of the world.

     

    He said,  “Statistics from the Nigeria Labour Congress shows that many workers in the telecommunications, oil and gas sectors are engaged as casual labourers by employers of labours.

     

    “Other sectors with thousands of casual labourers include mining, steel, banking and insurance.”

     

    Akinyelure while citing the banking industry as a hub for casualisation, blamed banks for turning female marketers into harlots and sexual slaves in a desperate attempt by them to keep their jobs and meet unrealistic deposit targets.

     

    He said, ‘In the banking and insurance industry, for instance, many young graduates particularly females are employed as marketers and given unrealistic customer deposit targets running into millions.

     

    “They are hired and fired at will when such unrealistic targets are not met.

     

    “The female among them who are desperate in keeping their jobs turn to harlotry and sex slavery.

     

    “They, move from one office to the other looking for invisible customers who have large funds to enable them meet their targets.

     

    “It is high time this evil and devilish act is stopped.”

     

    Senator Biodun Olujimi said, “Our girls have been turned into what we cannot imagine.

     

    “Most of them have been asked to look for funds, and when they come to us, I always tell them, I do not even have the funds to eat; how can I have funds to keep with you in the bank?

     

    “They will never be promoted if they don’t bring in such funds, and this is a banking industry that is privately owned, yes, but has made so much profit, and from the profit they could at least take the few that they can manage properly, rather than take a lot that they will be giving pittance.”

     

    The lawmaker harped on the need to have a legal framework to ensure that casualisation did not exist.

     

    The Senate President, Ahmad Lawan, in his remark charged the Committee on Employment, Labour and Productivity to strike a balance in the bill to ensure that casual workers in the country were not made victims of layoffs.

     

    After scaling second reading, the bill was referred to the Committee on Employment, Labour and Productivity to report back within four weeks.

     

  • No Plans to Hike Petrol Pump Price in February, NNPC Assures Nigerians

    No Plans to Hike Petrol Pump Price in February, NNPC Assures Nigerians

    The Nigerian National Petroleum Corporation (NNPC) has assured organised labour and Nigerians that there is no plan to increase the price of Premium Motor Spirit (PMS) otherwise known as petrol in the month of February.

     

    This follows the reported rumour of plans to increase the price of petrol due to the continuous increase in the global price of crude oil and the reported hoarding of the product by some depot owners and marketers.

     

    The assurance was contained in a statement issued by the NNPC and signed by the Group General Manager, Group Public Affairs Division, Dr Kennie Obateru, on Thursday in Abuja.

     

    Obateru, in the statement, said, “In spite of the rise in the price of crude oil in the international market, NNPC has ruled out any increment in the ex-depot price of PMS in February 2021.’’

     

    Obateru explained that the decision was to allow ongoing engagements with organised labour and other stakeholders on an acceptable framework that would not expose the ordinary Nigerian to any hardship.

     

    While giving assurances that the corporation had enough stockpile of petrol to keep the nation well supplied for about 40 days, he urged petroleum products marketers not to engage in the hoarding of PMS in order not to create artificial scarcity and unnecessary hardship for Nigerians.

     

    Obateru also called on relevant regulatory authorities to step up monitoring of the activities of marketers with a view to sanctioning those involved in products hoarding or arbitrary increase of pump price.

     

    Note:

    Recall that the Minister of State for Petroleum Resources, Chief Timipre Sylva, had in March 2020 announced the deregulation of the downstream sector of the oil industry and the subsequent removal of the petrol subsidy.

     

    He said that subsequently, the prices of petroleum products would be determined by prevailing market forces.

     

    With the increase in the oil price to about $65 per barrel, oil marketers and other stakeholders have insisted that the current petrol price is not sustainable unless the Federal Government would return back to the subsidy regime, which has no provision in the 2021 budget.

     

    The ex-depot price is the price at which oil marketers buy products from the depot and the price determines the price at which they sell to motorists at their various petrol stations.

     

  • WTO DG: Lagos NIPR Congratulates Okonjo-Iweala, Says Her Appointment Is For The Good Of The World

    WTO DG: Lagos NIPR Congratulates Okonjo-Iweala, Says Her Appointment Is For The Good Of The World

    The Lagos State Chapter of the Nigerian Institute of Public Relations (NIPR) has commended and celebrated the decision of the Board of the World Trade Organisation appointing Nigeria’s Dr. Ngozi Okonjo-Iweala as its Director General.

     

    In celebrating her appointment, the Chapter said it is pleased that a person of impeccable character with an impressive career trajectory will pilot the affairs of global trade from March 1, 2021.

     

    Speaking on the heels of the news of her appointment, an elated Chairman of the Lagos NIPR, Segun Mcmedal said, “We feel a personal sense of victory at the Institute that the best candidate emerged. Recall that at the early stage of the race, Dr. Okonjo-Iweala had mentioned that she didn’t have the resources to hire a PR firm to handle her aspiration to the exalted office.

     

    “Following this, she received a lot of PR support on the account of her impeccable record and achievements in the academics and public service which has earned her immense goodwill. A lot of Nigerians joined the fray in promoting one of our own. In essence, many people became her publicists and strategists. It was a clear case of earned PR.”

     

    He added that, “Dr. Okonjo-Iweala has once again put Nigeria on the world stage as has become her norm. She is the best candidate for the job. The Nigerian Institute of Public Relations have waited for this moment with bated breath because of the many hurdles she had to surmount before reaching the finish line. Her appointment is for the good of the world as she brings a wealth of experience, network and goodwill to the office’.

     

    Dr. Okonjo-Iweala begins her tenure as the DG of the World Trade Organisation on March 1, 2021 as the first African, first female and first Nigerian to attain the feat. It is a good example of shattering the glass ceiling. It is a celebration of the can-do spirit and victory for all persons of good will.

     

    As she joins the league of other Nigerians who are positively projecting Nigeria’s image on the global scene, the Institute wishes her outstanding success in her new role and stand ready to assist whenever it is called upon.

     

    The Lagos NIPR promotes gender equality and women empowerment as seen in the annual Strong Tender & Empowered Women’s Summit (STEWS): a high-profile talk-shop articulating and aggregating a collective voice to build momentum for gender equality, women empowerment, and effective implementation of the new Sustainable Development Goals.

  • Stanbic IBTC Gives N34.8m Scholarship to Successful UTME Students

    Stanbic IBTC Gives N34.8m Scholarship to Successful UTME Students

    Stanbic IBTC Holdings PLC, a member of Standard Bank Group, has awarded scholarships to successful candidates in the 2019 and 2020 University Tertiary Matriculation Examinations (UTME).

     

    This was done as part of its aspiration to encourage hardwork and excellence in academic pursuit. The 87 beneficiaries were drawn from the 36 states of the federation and the FCT.

     

    The beneficiaries comprised of 39 candidates who participated in the 2019 UTME and another 48 candidates drawn from the 2020 UTME. Physically challenged yet brilliant candidates were also included.

     

    The presentation of the scholarships was conducted virtually on Thursday, 11 February 2021.

     

    In 2019, Stanbic IBTC announced its scholarship scheme to support, reward and encourage students who had excelled in their academic pursuit.

     

    The leading end-to-end financial solutions organisation said the initiative was in line with its commitment to value-driven corporate social investments, designed to contribute to youth’s educational development.

     

    The scholarship programme was introduced as part of the financial institution’s 30th anniversary celebration.

     

    Dr. Demola Sogunle, Chief Executive, Stanbic IBTC Holdings PLC, said the prosperity of the nation and its citizens was hinged on the youth’s educational development, and that the financial institution remained determined to provide the necessary support to brilliant students.

     

    He said: “Stanbic IBTC appreciates the fundamental role education plays in transforming society, which is why we have chosen to institute the scholarship to encourage hard work and academic excellence amongst Nigerian students who desire tertiary education. The scholarship will enable them to pursue and realise their dreams of academic excellence”.

     

    “The scholarship will be disbursed to the 87 students in yearly tranches for a period of four academic years. However, after the first tranche, subsequent disbursements will be subject to maintaining at least a second-class upper grade and evidence of good conduct confirmed by the school” Dr. Sogunle added.

     

    He further stated that “Education Trust Funds will be set up for the beneficiaries, and the funds will be accessed through the Education Trust accounts”.

     

    The beneficiaries were effusive in their appreciation of the gesture. A beneficiary, Hammed-Saruk Omogbolahan, who spoke during the virtual ceremony, thanked Stanbic IBTC for the scholarship.

     

    He said the scholarship would allow them focus on their education, and he assured that they would continue to strive for academic excellence to justify their selection.

     

    Education has remained a key focus area for Stanbic IBTC, and the financial institution has continued to play a leading role in transforming lives through education.

     

    Other scholarship initiatives organised by the financial institution include those awarded to indigent children who have suffered limb losses, under its signature CSI initiative tagged Together4ALimb.

     

    Stanbic IBTC is committed to identifying opportunities to help mould the next generation of leaders and help build a robust education sector that Nigerians can be proud of.

     

  • Marketers Raise Petrol Price To N170 As Depots Suffer Shortage

    Marketers Raise Petrol Price To N170 As Depots Suffer Shortage

    Fuel marketers have started adjusting their petrol pump prices amid the supply shortage facing private depots in Apapa.

     

    Investigations showed that some filling stations in Lagos and Ogun states increased the pump price of petrol to N170 per litre on Tuesday from N162 per litre.

     

    Some of the stations were Capital Oil and Gas, Fatgbems and Amo Oil, all along the Lagos-Ibadan Expressway. Another station, Enyo Retail, adjusted its pump price to N165 per litre from N162.

     

    The National Operation Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, told our correspondent that members of his association had to increase the pump price because they bought the product at N160-N161 from depot owners.

     

    Last Thursday, there were reports that IPMAN members disrupted loading of petroleum products at private depots in Apapa on Wednesday as well as Ibadan, Ejigbo and Mosimi depots belonging to the Nigerian National Petroleum Corporation.

     

    They picketed the facilities to protest their inability to get products due to a new payment method introduced by the Petroleum Products Marketing Company, a subsidiary of the NNPC.

     

    “My members buying from DAPPMAN members are buying at N160-N161, and they will have to add their transportation costs to it. So, at what price do you want them to sell? Even that N170 is still very cheap,” Osatuyi said on Tuesday.

     

    He said the PPMC had told marketers to register under the new payment method, called ‘PPMC Customer Express’, before they could buy products from it.

     

     

    “Right now, PPMC has said that the era of ATP (Authority to Pay) has gone. It means that payment has to be made online. So, my members are now in the process of doing that, and without doing it, we cannot lift products,” he added.

     

    The NNPC, which has been the sole importer of petrol into the country in recent years, is still being relied upon by depots and marketers for the supply of the product despite the deregulation of the downstream petroleum sector.

     

    Our correspondent also gathered that many private depots in Apapa, Lagos, from where many marketers get petroleum products for distribution to other states, were running dry of petrol due to supply shortage.

     

    When contacted, the Group General Manager, Group Public Affairs Division of the Corporation, Dr Kennie Obateru, told our correspondent that there was no shortage of petrol supply from the NNPC.

     

    He said, “We have 1.7 billion litres of product as at today, which will give us about 40 days’ sufficiency. Even some more vessels are on the programme.

     

    “And we have not increased our ex-depot price; even though we know some of them (marketers) are sort of slowing down because they are expecting that we will react to the crude oil price increase. But for now, we haven’t done that.”

     

    One of the major private depots told marketers to stop payment for the petrol because of the supply shortage and the uncertainty over when it would get the product.

     

    A top official of a Lagos-based oil marketing company told our correspondent on condition of anonymity that there had been erratic supply of petrol to private depots in Apapa since last week.

  • How Nigerian Banks Lost N5bn To Fraudsters In Nine Months — NIBSS

    How Nigerian Banks Lost N5bn To Fraudsters In Nine Months — NIBSS

    The Nigeria Inter-Bank Settlement System Plc has said that more than N5bn was lost as a result of fraud in the banking sector between January and September 2020.

     

    It disclosed this in its NIBSS Insight report on ‘Fraud in the Nigerian Financial Services’.

     

    Part of the report read, “On a global scale, fraudulent activities have resulted in losses amounting to about $42bn. Approximately 39 per cent are perpetrated by external parties while 37 per cent are perpetrated by internal parties.

     

    “Driving deeper in Nigerian industry data, the actual figures reported by the industry are quite striking.

     

    “This year, about 91 per cent of all fraud attempts as at September have resulted in a total loss, and more than N5bn was lost as a result of fraud within the period.

     

    “This represents financial institutions with an opportunity to protect their investments as well as attract customers by offering increased artificial protection and the ability to recover lost funds more easily.”

     

    The report also stated that data from the industry antifraud portal data showed that 56 per cent of all reported fraud attempts were carried out using social engineering.

  • How Nigeria Can Benefit From Okonjo-Iweala-Led WTO – LCCI

    How Nigeria Can Benefit From Okonjo-Iweala-Led WTO – LCCI

    The Lagos Chamber of Commerce and Industry has highlighted steps Nigeria needs to take in order to fully take advantage of the opportunities offered by the World Trade Organisation under the leadership of Dr Ngozi Okonjo-Iweala.

     

    The LCCI, in a statement on Monday, felicitated with Nigeria on the appointment of Okonjo-Iweala as the Director-General of WTO.

     

    The Director-General, LCCI, Dr Muda Yusuf, said, “While the emergence of Dr Okonjo-Iweala as the new WTO Director-General is very gratifying and calls for celebration, there is a need to manage expectations around the outcomes for the Nigerian economy, given the numerous productivity and competitiveness issues the country is grappling with.

     

    “Ultimately, these are the factors that would determine the benefits that would accrue to the economy from global trade.”

     

    According to him, Nigeria needs to build capacity for international competitiveness of its products and services so as to benefit from the WTO.

     

    He said, “Also imperative is the need to address trade facilitation issues, especially around port processes, ports infrastructures, international trade documentation, foreign exchange policies, trade policies and industrial policies. We need to promote local value addition and backward integration to strengthen competitiveness of our domestic industries.

     

    “We must undertake reforms of our tariff policy in accordance with the principles of comparative advantage, which would enable the country to optimise opportunities in the global trade arena and enhance the citizens’ welfare.”

     

    According to Yusuf, it is critical to develop an African Continental Free Trade Area strategy that would enable the country to leverage trade opportunities both continentally and globally.

     

    “There is a need to improve on our strategy in managing the coronavirus pandemic ranging from ensuring compliance to safety protocols to vaccine procurement and distribution,” he said.

     

    The LCCI DG said Okonjo-Iweala’s emergence came at a time when the global trading system was faced with numerous challenges, including supply chain disruptions precipitated by the coronavirus pandemic, rising protectionism and unilateralism, growing economic nationalism, and imposition of trade restrictions covering substantial amount of international trade, among others.

     

    “Africa has peculiar challenges in the global trade arena. The continent is deeply integrated into the global supply chain and this underscores the low participation level of African economies in international trade,” he said.

     

    According to him, it is very pertinent for African economies to build capacity within the continent in order to take advantage of the opportunities in global trade.

  • Firm Launches Auto Spare Parts Platform

    Firm Launches Auto Spare Parts Platform

    This is good news for Nigerians as an auto firm, 234Parts.com, has introduced online platform for the automobile sector to connect spare parts buyers and sellers, dealers, auto workshops and car owners.

     

    According to Mr Godson Madu, Managing Director 234Parts.com, “the website – 234parts.com boasts of over 370,000 car parts listings with 28,000 unique products from over 6,000 spare parts dealers across major spare part markets in Ladipo, Tin Can, Ojuelegba in Lagos, Abuja, Kaduna, Kano and Port – Harcourt.

     

    In Mr Madu’s words, “234 Parts.com inventory ranges from auto parts, lubricants, batteries, tools, wheels and tyres”

     

    Mr Godson Madu  disclosed further that 234parts.com site is very  easy to navigate and has been designed to make the process of buying quality replacement of parts easy and convenient by providing multiple spare parts options and price comparism to owners, while also enhancing the product visibility of the spare part dealers” he stated.

     

    Corroborating him, Mrs Eniola Alli- Ayodele, Chief Marketing Officer added that  “234parts.com is the leading online platform for the automobile spare parts sector and has for almost two years, served as a connecting point for spare parts dealers, auto workshops and car owners.”

    Mr Godson Madu, Managing Director, 234Parts.com

    “From our research, with the influx of foreign used cars in Nigeria; usually over five years old at the time of their arrival, there is now a significant increase in maintenance visits from 4 times to 12 times annually. It has been recorded that each of those visits involves a parts replacement purchase. Consequently, the presence of substandard new spare parts increases as the manufacturers of these foreign used cars discontinue production of some of the car’s parts.

     

    “The need for genuine auto spare parts gave birth to 234Parts.com site” she said.

     

    According to Mrs Eniola Alli- Ayodele, “the current focus of 234parts.com platform is to hold the largest inventory of both used and new automotive spare parts in Nigeria, and increase access to the platform by using its rich data and insights to organize the fragmented spare parts industry.”

     

    In addition, “the business will in the coming months penetrate other major cities in the nation and onboard additional spare parts dealers after a rigorous verification process. This new development promises to create an opportunity for OEMs and genuine spare parts vendors to compete while also increasing the chances of car owners getting guaranteed parts.” she noted.

     

  • NIRSAL Facilitates N148bn Agric Financing, Investments

    NIRSAL Facilitates N148bn Agric Financing, Investments

    The Nigeria Incentive-Based Risk Sharing System for Agriculture Lending on Thursday announced that it had facilitated over N148bn in finance and investments for agriculture and agribusiness.

     

    Managing Director, NIRSAL, Aliyu Abdulhameed, told journalists in Abuja that the firm achieved the feat as of the fourth quarter of 2020.

     

    He noted that the agency aggregated over 3,000 agro geo-cooperatives with 500,000 farmers on nearly 800,000 hectares of land.

     

    “We enrolled 1.4 million persons onto innovative insurance products designed by NIRSAL in collaboration with a consortium of agricultural insurance underwriters,” Abdulhameed stated.

     

    He said NIRSAL was engaging with and supporting the Federal Ministry of Industry, Trade and Investment in the development of a policy on Secured Agricultural Commodity Transport and Storage Corridors.

     

    This, according to Abdulhameed, would curb the dismal levels of post-harvest losses in Nigeria and create efficient routes for commodity movement and storage.

     

    He said, “In the course of the last 13 months, we facilitated the flow of over N30bn into agricultural value chains from commercial banks and other sources.

     

    “Even though our operations suffered a stall during the lockdown of 2020, our technological depth gave us a pathway to return to work while remaining safe and socially-distanced.”

     

    He added, “As you know, it was important to continue, even increase, food and raw materials production as the pandemic bit harder.”

     

    Abdulhameed said NIRSAL had grown its balance sheet to N140bn, equity by 1,415 per cent and our total assets by 87 per cent.

     

    He said the number of farmers which the agency had worked with had also grown, especially as NIRSAL fully unveiled its agro geo-cooperative model in 2020.