Business
Nigeria’s crude oil production in April rebounds to 1.28mb/d — OPEC
Nigeria’s average crude oil production for the month of April marginally rose to 1.281 million barrels daily according to the Organisation of Petroleum Exporting Countries (OPEC) monthly oil market report for April.
According to direct sources from the federal government, daily crude oil production increased by 51 thousand barrels from 1.231 million barrels per day to 1.281 mb/d.
However, data from secondary sources to the oil cartel reports a decline in average daily oil production by 46 thousand barrels from 1.4 million barrels daily to 1.354 million barrels per day.
As per secondary sources, the 12 members of the oil cartel produced 26.58 million barrels per day- a decline of 48 thousand barrels compared to the production in March. In the month, crude oil production mainly increased in Congo and Iran while Nigeria, Iraq and Venezuela saw decreases.
The other supporters of the oil cartel mainly led by Russia during the month recorded an average daily oil production of 14.44 million barrels daily. When compared with the previous month, there was a decrease of 198 thousand barrels. Among this group, Bahrain increased her oil production while Russia and Kazakhstan reported decline in oil production.
Despite the marginal increase in crude oil production, it still falls below the production quota set by OPEC and daily production target as reported in the 2024 budget. In the first quarter of the year, Nigeria consistently failed to meet its OPEC daily production quota of 1.5 million barrels per day and even the higher target of 1.78 million bp/d proposed in the 2024 appropriation bill.
In the first quarter of the year, average daily production stood at 1.327 million barrels- about 180 tb/d shy of the quota set by the oil cartel.
The consistent inability of the country to meet its OPEC quota and budget proposal target has negative effects on revenue generation, foreign exchange stabilisation, overall budget performance and foreign reserve position.
In the first three months of 2024, the foreign exchange market saw significant volatility with the naira depreciating from just under N1,000/$ at the close of 2023 to N1309/$1. However, during this period, the market saw wild swings with the naira once trading on the parallel market at N1,800/$.
On the budgetary front, the International Monetary Fund (IMF) had projected a higher budget deficit on the back of the failure of the authorities to meet its production targets despite elevated crude oil prices.
It stated, “Staff projects a higher fiscal deficit than anticipated in the 2024 budget, but broadly unchanged from 2023. The drivers are: (i) lower oil/gas revenue projections, reflecting IMF oil price forecasts but incorporating recent production gains.”
The Central Bank of Nigeria (CBN) has announced new measures to enhance local currency liquidity for the settlement of diaspora remittances.
The measures will allow eligible international money transfer operators (IMTOs) to access naira liquidity at the official window.
This move is part of the regulator’s commitment to the smooth functioning of the foreign exchange (FX) markets and enabling greater remittance flows through formal channels.
According to the CBN, the new measures will widen access to local currency liquidity for the settlement of diaspora remittances.
Eligible IMTO operators will be able to access the CBN window directly or through their Authorized Dealer Banks (ADBs) to execute transactions for the sale of foreign exchange in the market.
The IMTOs are companies that provide cross-border money transfer services, facilitating the transfer of funds from individuals or entities residing abroad to recipients in Nigeria.
The CBN has stipulated rules to guide the process and enable compliance, including same-day settlement for transactions executed before 12 noon on a trading date.
Pricing on the CBN portal will be reflective of NAFEX traded rates observable on an acceptable market benchmark.
The operation of this market segment will follow the existing arrangement in place for authorized dealers with Foreign Portfolio Investment participating in the primary market securities auctions.
Regulatory returns to be submitted to the CBN by all participants on a daily basis are mandatory and must contain all relevant information on the sources of funds.
The CBN’s move is expected to significantly improve the liquidity of local currency for diaspora remittances, enhancing the overall efficiency and reliability of the foreign exchange market in the country.
The bank has been collaborating with IMTOs to double remittance flows through formal channels into Nigeria, with the goal of increasing transparency and competitiveness in the FX market.
In May, the CBN granted approval in principle (AIP) to 14 new IMTOs, and the governor of the CBN, Olayemi Cardoso, has expressed confidence in the bank’s ability to double remittance flows into Nigeria within a year.
By Esther Agbo
The Chartered Pension Institute of Nigeria (CPIN) will recognise notable individuals who have significantly contributed to the success of Nigeria’s contributory pension scheme.
This honour will be bestowed during the induction program scheduled for June 27, 2024, marking the 20th anniversary of the Contributory Pension Scheme.
The Executive Secretary/CEO of CPIN, Dr. Samson Akinyemi, emphasised that the awards aim to acknowledge the efforts of those who have fostered the growth of Nigeria’s pension industry and its economy.
The institute will also honour senior management from various states, pension fund operators, and private organisations with extensive experience and contributions to the sector.
Practitioners with around 20 years or more in the industry will also receive recognition.
He mentioned that membership in the institute is available to the public, provided they meet the required qualifications.
The highest membership level, to become a fellow, requires candidates to have held an Associate Certificate of the institute for at least seven years and possess advanced academic qualifications, along with substantial senior management experience in pension management or academia.
Dr. Akinyemi further stated that to become an associate, candidates must be employed in a pension management field, pass the institute’s examination, and hold at least a university first degree or HND.
Additionally, undergraduates or school certificate holders employed by pension management companies can apply for the Pension Technician Certificate.
By Matthew Denis
The Management of Shoprite Mall has announced its intention to cease operation in one of its Abuja branches from June 30, 2024.
The branch is situated at Novare Central Mall in Wuse Zone 5.
This was contained in a circular signed by the Chief Executive Officer, Dr Folakemi Fadahunsi, on behalf of the retail supermarket and obtained by our Business Correspondent on Monday.
A staff at the store who pleaded anonymity also confirmed the report, saying, “Yes, it is true, we just heard it here too.”
The popular mall attributed its decision to a thorough evaluation of the store’s financial situation and the current business climate.
It additionally notified vendors that their services would no longer be needed at the store.
The circular read, “We regret to inform you that as of June 30, 2024, Retail Supermarkets Nigeria Limited will be closing its Wuse Store located in Novare Wuse Central Mall, Abuja. This decision has been made after a thorough evaluation of the store’s financial situation and the current business climate. We believe this is the best course of action for our organisation’s long-term growth.
“Effective June 30, 2024, our company will no longer operate in Wuse, Abuja, and we will no longer require your services for the Novare Wuse Central Mall Store. Please note that all existing service contracts will also terminate for the store.”
The circular added the company would be reviewing its accounting records in the next 60 days to settle outstanding balances.
“If your services are specifically tied to the Novare Wuse Central Mall Store and if there is an outstanding balance between our companies, we will carefully review our accounting records over the next 60 days (about 2 months). We will then promptly contact you to confirm the amount owed and discuss a suitable payment schedule.
“We would like to express our gratitude for your past business. It has been a pleasure working with you and your team. If you have any questions or concerns, or if there is anything we can do to assist you during this challenging transition, please do not hesitate to reach out to us, it added.
Recall that multiple multinationals have left Nigeria by either scaling down operations, transferring ownership or selling their stakes, the most recent being the sale of beverage company Diageo’s 58.02 per cent shareholding in Guinness Nigeria to Tolaram Group on June 11, 2024.
Court adjourns Emefiele’s trial till October 21
Cholera outbreak: Tinubu constitutes presidential c’ttee to oversee emergency operations
