ECONOMY AND BUSINESS NEWS

[friendsofthecity]

Why threatening to quit? If the Virgin Nigeria airlines have successfully commenced their domestic services at the MMA2. The whole criticism should rest on the airlines operator after this time, if it actually quit.

I don`t think that news is from a genuine source.

[friendsofthecity]

I think Virgin Nigeria has this in mind before ``In order to reduce its exposure to VNA, Virgin Atlantic is in the process of selling 42 per cent of its stake through a $25 million private placement. The transaction which is being handled by Afrinvest as Issuing House and Underwriters, will be secured by the executed Share Purchase Agreement between VNA and Virgin Atlantic, as well as a board resolution from the latter authorising the sale of its shares to institutional and individual investors. In addition, Afrinvest is in the process of assisting VNA raise a N20 billion contingency line of credit to provide immediate refinancing of a $100 million bond, overdraft and other facilities extended to the firm by UBA Plc that will be securitised by the assets and accounts of VNA.
``. Using propaganda and excuses while Virgin Nigeria couldn`t meet up to it expectations is totally uncivilised.

[Matthias Offodile]

Nigeria's oil reserves hit 33.6 bln barrels

Fri Aug 15, 3:15 PM ET

ABUJA (AFP) - Crude oil reserves in Nigeria, the world's eighth largest exporter, have increased by 12 percent over the past year to 33.6 billion barrels, a top oil official said Friday.
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"As at today, we have an oil reserve base of 33.6 billion barrels," Abubakar Yar'Adua chief of the state-run oil company, Nigerian National Petroleum Corporation (NNPC) told reporters.

The reserves in the OPEC member state stood at 30 billion barrels a year ago.

Nigeria, until recently Africa's leading oil producer and exporter before it was overtaken by Angola, is aiming to build a reserve base of 40 billion barrels by 2010.

But there are serious doubt that such a target could be realised in the wake of a spate of militant attacks that have hit operations in the country's oil-producing Niger delta.

Yar'Adua said despite "obstructions and incidents that militated against realisation of full potential of the country in terms of crude oil production" daily output was "maintained at an average of two million barrels per day" over the past 12 months.

But the country's Oil Minister Odein Ajumogobia last week admitted security concerns in the southern oil producing region had seen production drop to 1.8 million bpd.

"It was very disturbing a few weeks ago when for the first time Nigeria's daily oil production dropped to below 1.8 million barrels per day," Ajumogobia told a meeting of petroleum engineers.

Militant groups fighting for a greater share of the oil revenue in the Niger delta frequently launch attacks on installations and kidnap workers employed by oil and support companies operating in the region.

[JoblessBeggar]

Originally Posted by friendsofthecity

I think Virgin Nigeria has this in mind before ``In order to reduce its exposure to VNA, Virgin Atlantic is in the process of selling 42 per cent of its stake through a $25 million private placement. The transaction which is being handled by Afrinvest as Issuing House and Underwriters, will be secured by the executed Share Purchase Agreement between VNA and Virgin Atlantic, as well as a board resolution from the latter authorising the sale of its shares to institutional and individual investors. In addition, Afrinvest is in the process of assisting VNA raise a N20 billion contingency line of credit to provide immediate refinancing of a $100 million bond, overdraft and other facilities extended to the firm by UBA Plc that will be securitised by the assets and accounts of VNA.
``. Using propaganda and excuses while Virgin Nigeria couldn`t meet up to it expectations is totally uncivilised.

Virgin Nigeria is doing exactly the right thing. In the first instance, while the Virgin Group is the operator, it does not hold the majority equity interest in Virgin Nigeria. Virgin Nigeria is a NIGERIAN airline, and therefore Virgin's divestment of some of its minority equity holding to Nigerian shareholders is totally appropriate. Furthermore, any rational investor would also seek to reduce its local risks in an environment where govts apparently do not respect agreements and a corporation could be forced into contractual relationships (with BiCourtney, in this instance) that it does not desire.

[Håkønljzberg]

Sokoto Plans N8 Billion Power Plant

The Sokoto State Government has revealed that it plans to sink between N6.9bn and N8.31bn for alternative power supply under the State Emergency Power Supply project in order to complement the current low Megawatts being supplied to the state by the Power Holding Company of Nigeria, PHCN.

Briefing newsmen in Sokoto shortly after the state executive council meeting, State Commissioner of Education, Alhaji Muhammadu Arzika Tureta said that the planned project, which is intended to be an independent power source for the state, is aimed at generating between 60 and 80 Megawatts that would serve the increasing demand of the people in both urban and rural areas across the state.

"We have two options, either to go for 60 or 80 Megawatts based on the two alternative costs of N6.9 billion and N8.31 billion respectively", he said. He said the state government had entered into agreement with Balkan Energy Commission, Abuja, a reputable firm specialised in energy generation, supplies and distribution services.

The Commissioner stated that the completion periods for either of the two power stations chosen by the state government would be 6 and 15 months for the 60 and 80 Megawatts, respectively.

"This project when completed," he added, "will enable over 40 towns and villages benefit from rural electricfication in both first and second phases of the project."

In the same vein, Alhaji Tureta disclosed that the state government had earmarked N1.7bn for the purchase and distribution of 13,000 metric tonnes of perboiled rice to the public at subsidised rate to cushion and meet the aspirations and food requirement of people in the state.

Bestman International Limited, Abuja has been contracted for the supply of the commodity, which would be carried out in two phases.

He explained that a committee would be set up to conduct a market survey to determine the current market price of the commodity so as to arrive at the percentage of subsidy to be given by the state government on each bag. "The gesture," he added, "is aimed at comforting people in the state and make them feel the impact of the PDP-led government in all aspects of their living".

[Håkønljzberg]

Xechem Targets Daily Production of 50,000 Nicosan Capsules

Xechem Nigeria Ltd, manufacturers of Nicosan - currently reknowed as the most efficient drug for management sickle cell disease - is boosting output with fresh investments over N1billion for building an additional plant.

Managing Director of the company, Mr Iretiolu Oniyide, told Good Health Weekly during a facility tour of the plant in at the Sheda Science and Technology Complex, Abuja, that the development was made possible following facilities granted the company by the Nigerian Export-Import Bank (NEXIM) and another loan from an American bank that fully guaranteed by the US EX-IM Bank and some Nigerian banks.

-A seminar on "The Healing Power of Enzymes in Preventive Healthcare and Weight Management Therapy" held weekend at Ocean View Restaurant, Adetokunbo Ademola Street, Victoria Island, Lagos by St Eve Concepts Ltd. Special Guest Speaker, Dr DicQie Fuller Looney examining a blood specimen on the microscope during the event.

He said NEXIM's N500 million loan and the $4.3 million from the U S was being fully deployed towards accelerating the completion of the new plant which according to him would come on stream in the next six to nine months.

When on stream, Onoyide said Xechem would be able to produce about 50, 000 capsules of Nicosan daily, thereby giving more people living with sickle cell better lease of life.

Onoyide who was one of the Nigerians in the Diaspora who heeded former President Olusegun Obsanjo's call to return home and help build the Nigerian economy, said he returned from the US to take up the job owing to his firm believe in the country and that Nigeria had the potentials to be great in all respects.

His words: "The only thing that is foreign in the production of Nicosan is the equipment. Even then, some of the equipment are already being fabricated here, locally."

He said the post-market survey conducted by the company was very encouraging and had been a source of inspiration for him and his team at Xechem which had spurred them towards planning for more ground-breaking drugs.

The MD identified Nicosan as critical to the efforts of Nigeria to achieve the Health goal in the overall Millennium Development Goals (MDGs), as he explained, "to address high mortality in Nigeria, you have to address Nicosan as 80 per cent sickle cell sufferers do not ordinarily live beyond fives years, a trend that Nicosan is effectively reversing.

He said those who take the drug regularly could live normal lives without suffering crises, usually associated with sickle cell and therefore helps them to live and contribute their quota to the growth of society.

Oniyide disclosed that Niger and Nassarawa State governments had been purchasing the drug for distribution in their hospitals at heavily subsidizsd rates for adult patients or given free to children.

Xechem's boss who was very excited about the drug said all the scientists who were part of the success story of Nicosan deserved National Director-General, SHESTCO, Dr Ayodele Coker, said his organization was prepared to put in place necessary infrastructure within the complex to encourage investors to set science and technology businesses in the complex.

He said Federal government was encouraged by the Xechem success story and therefore urged more businesses to take advantage of the facilities at the complex, located at a serene environment, outside the nation's capital.

He took journalists round the Gamma irradiation facility within complex which he said has the capacity to address the food storage problems of the nation as the facility could preserve both dry and wet foods for several months.

Vice President of the All Farmers Association of Nigeria (AFAN), Chief Bayo Ajayi, called for the support of Federal and state governments in the NICOSAN project to put smiles on the faces of all sickle cell patients in the country.

Xechem Nigeria started its operation at the National Institute for Pharmaceutical Research and Development (NIPRD) in July 2002 after signing an agreement between NIPRD and XECHEM for research, development, production and worldwide sales and marketing of NICOSAN the Sickle Cell Disease treatment drug, developed by NIPRD scientists.

[Håkønljzberg]

JTF Smashes More 118 Illegal Oil Refineries

THE Joint Task Force (JTF) on the Niger-Delta continued its crackdown on crude oil thieves in Delta and Bayelsa states, weekend, as it smashed additional 118 illegal crude oil refineries at Okwagbe and Egbo-Ide communities in Ughelli South local government area of Delta state.

The unexpected swoop on the two communities, has sent shockwaves down the crude oil thieves enclave, whose attempt to stop the Commander of the JTF, Brigadier-General Nanven Wuyep Rimtip after 111 illegal refineries were shut down at Tuomo community in Burutu local government area of the state, earlier in the month, was rebuffed.

With the 118 illegal refineries demolished at the weekend, the 111 at Tuomo and four others in Bayelsa state, the total as at yesterday in roughly one month is 233.

Coordinator of the Media Campaign Centre of the JTF, Lt. Col Rabe Abubakar confirmed the pulling down of 118 illegal refineries when contacted, yesterday.

A reliable source also said that JTF soldiers who carried out the operation at Okwagbe and Egbo-Ide communities stormed the community on Sunday following a tip off.

It was learnt that 24 hours before the crackdown, scores of tankers were noticed in the communities loading petrol from the illegal refineries and upon receipt of intelligence information, Brigadier-General Rimtip who was threatened by crude oil thieves after he demolished the 111 illegal refineries in Tuomo community sent his men to the Okwagbe and Egbo-Ide bringing the total demolished in one month.

According to the source, "Both communities were beehive of activities on Saturday, as the crude oil thieves made brisk business and there is no doubt that the villagers knew about the illegal refineries because the tankers drove into the town to load petrol and they cannot say that they did not see them".

It was gathered, however, that the crude oil thieves were heavily armed and were ready to deal with anyone found relating with security agents moreover, they bribed some people in the community to keep quiet.

"The crude oil refining they are doing is just the same way they brew Ogogoro (local hard liquor) teal crude oil from the oil pipelines and they employ people in the illegal refineries to refine the stolen crude oil. As the cook Ogororo, so they cook the crude oil to separate water and other things from the petroleum, the water flows out through a pipe that it connected to the drum on fire, which is used to cook the crude oil.

Through this process, they get the petrol, which they sell to petrol dealers.

"I don't know how the JTF got to know and came to the place on Sunday, if not, the business had been going on here for a long time, and nobody is bold enough to report them, maybe, it is because the JTF destroyed the ones in Tuomo that some people were bold to give them the information, I don't know", our source said.

Investigations by Vanguard showed that illegal refineries have existed in the state for a long time.

A top police officer at Ughelli who spoke to Vanguard said, "It was strictly a military operation carried out by men of JTF".

The Committee for the Defence of Human Rights (CDHR) in a statement, yesterday, in Warri, signed by the chairman, Barrister Oghenejabor Ikimi commended the JTF Commander for his renewed vigour and determination in checking and eradicating the activities of crude oil thieves and bunkerers in the Niger-Delta, which had amongst other actions culminated in the arrest in Bayelsa state of 14 Filipinos and the prosecution of same, the destruction of 111 illegal refineries in Tuomo community in Delta state and another 118 in Okwagbe and Egbo-Ide communities also in Delta state.

"We hope that the same vigour with which the JTF Commander and his men have employed in fighting crude oil thieves and bunkerers in the Niger-Delta region will be deployed at checking the rate of extortions and other excesses of the men at various military checkpoints in Warri, Effurun, Udu, etc, which are presently unbearable and nightmarish to motorists and motorcyclists alike, particularly the commercial ones", Ikimi stated.

[ufookoro]

Nigeria: Country Now 'Frontier Emerging Market', Says IMF

This Day (Lagos)




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This Day (Lagos)

20 August 2008
Posted to the web 20 August 2008

Constance Ikokwu
Washington, D.C.

Nigeria's recent private sector-led growth and vibrant capital markets with potentials for investors have placed it in a league of eight sub-Saharan African countries (outside South Africa), heading towards emerging market status, a new International Monetary Fund (IMF) report has revealed.

The country is now a "frontier emerging market", according to the IMF - a position that will guarantee the Nigeria the emerging market status as soon as it matures.

Also, Nigerian banks raised about $12 billion in capital over 2006-07 mostly from offshore investors, using a variety of investment vehicles, the report noted.

In the new report titled "The Rise of Africa's Frontier Markets," IMF Senior Adviser Africa Department, Mr. David Nellor, said Nigeria, Botswana, Ghana, Kenya, Mozambique, Tanzania, Uganda and Zambia had met the criteria required of emerging market countries.

Emerging markets, the study explained, refer to countries that have financial markets and attract investment interest.

According to him, these eight countries in the sub-Sahara Africa region account for about 40 per cent of the region's population outside South Africa and almost one-half of its GDP.

He pointed out that Nigeria dominated trade in this group and had fared well because of lower debt burden.

The study also pointed out that since the country received Paris Club debt relief and bought back much of the remainder of its external debt, trade in Nigerian debt had been mainly domestic.

This placed Nigeria 21st on the global debt trade ranking at the end of 2007, which in his view "is equal to or exceeds many first-generation emerging markets."

Nellor said in the report: "The criteria for an emerging market set out here-growth, private sector-led growth, and investible markets-can be identified in eight sub-Saharan African countries: Botswana, Ghana, Kenya, Mozambique, Nigeria, Tanzania, Uganda, and Zambia.

"Emerging markets are attractive to investors because they offer rates of return that are high relative to mature markets and offer opportunities for investors to diversify risk. High GDP growth signals that there are opportunities for investors to 'buy' into the country's overall prospects or seek out opportunities by identifying undervaluation in specific sectors.

"Growth prospects in emerging market countries are likely to be based on technological catch-up, significant output gaps, young populations, and faster population growth than in mature markets. The processes that bring about growth may differ by country, but a track record of solid growth is common to emerging markets. The potential for risk diversification might arise at the country level when growth trends are not synchronised with mature market economies."

One way to assess the prospects of these countries, particularly resource-rich nations, was to compare their performance during previous oil boom periods to today and how they tried to avoid the boom-bust cycle, Nellor said.

Using Nigeria as an example, he argued that the country's performance was better since the current oil boom which started in 2004, compared to the booms of 1974-78 and 1990-94, measuring non-oil growth and inflation.

Good fiscal policy, budget oil price rule and saving oil revenues above the budget price all helped Nigeria perform better, he noted, warning, however, that Nigeria would have to adhere to strict fiscal rule in order to maintain strong growth.

These new developments, according to the study, would provide tremendous opportunities for African countries because access to capital markets was a key component of high and sustainable private sector led growth.

The study also noted that the term emerging market was coined by the International Finance Corporation (IFC) in 1980 to refer to developing countries with stock markets that were beginning to demonstrate the features of the mature stock markets in industrial countries.
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It also gives investors the opportunity to make financial investments in a country. Before now, only South Africa held that status on the African continent. Access to capital had in the past been out of the reach of most African countries.

[Håkønljzberg]

Country, Germany Sign MoU on Power Supply

A Memorandum of Understanding aimed at improving the country's epileptic power supply was yesterday signed between Nigeria and Germany. The highlight of the ceremony which was performed by Nigeria 's Foreign Affairs Minister, Ojo Maduekwe and the German Ambassador to Nigeria , Joachim Schmillien and witnessed by President Umaru Yar'Adua was the return of Siemens to the Nigerian economy as it billed to execute some of the projects.

Award of new contracts to Siemens was suspended by the Nigerian government following allegations of corruption leveled against the German company some months ago.

The agreement which is named the Nigeria-German Energy Partnership Memorandum of Understanding, empowers Germany to execute various power supply projects in different parts of Nigeria that would increase electricity generation in the country by 6,500 megawatts between now and 2020.

Under the terms of the memorandum, new power plants would be built in the country while Nigeria 's existing hydro-electricity dams would be expanded while dilapidated sub stations would be rehabilitated.

Though Nigeria's present source of power generation are mainly Thermal, Hydro and Gas based, the new agreement between Nigeria and Germany would include coal-powered plants, solar thermal plants, solar photovoltaic panels, wind power plants, waste-to-energy plants and light crude plants near refineries.

President Yar'Adua who witnessed the ceremony hailed the German Chancellor, Angela Merkel for her dedication to ensuring that the agreement between Nigeria and Germany came to fruition.

According to President Yar'Adua, the successful execution of the agreement between the two countries underscores the 'unwavering commitment to evolving those requisite deliberate, structured policy choices that will enable us rapidly rebuild, upgrade, and expand our critical infrastructure'.

According to President Yar'Adua, "from the time I discussed the issue of the Partnership with her (Merkel) in June 2007 up till this moment, she has remained steadfast in the pursuit of its actualization.

"It is evident that the original objective of the partnership, which is to address Nigeria 's energy challenge while guaranteeing Germany short and long term energy security, has been properly addressed.

"While assuring you of the readiness of all relevant Federal Government functionaries, not only to buy into, but also to provide the requisite impetus for the process, I wish to congratulate all who have contributed to evolving this partnership for a job well done.

"I assure you that the Nigerian government will ensure the speedy implementation of the agreed terms of the MOU," Yar'Adua said.

President Yar'Adua suggested the establishment of a joint secretariat to work out the modalities for making the partnership work

The German companies involved in the partnership are Siemens, ArGe, E.ON, EVONIK and Kfw Ipex Bank.

Some of the projects are located in Ikot Abasi (Akwa Ibom), Kainji ( Niger ), Kaduna , Obudu ( Cross River ), Kano , Maiduguri , Egbin ( Lagos ), Sapele (Delta), and Afam (Rivers).

Others are in Sokoto, Katsina and Gombe while a nationwide audit of substations and grid bottlenecks would also be carried out.

The German delegation was led by its Minister of Foreign Affairs, Mr Hennrich Thiemann.

[Håkønljzberg]

Nation's First Compressed Gas Station to Be Commissioned in Benin

Minister of State for Energy, Mr. Emmanuel Odusina yesterday in Benin said that the first Compressed Gas Station in Nigeria would be commissioned on December 2008 in Benin.

He said similar compressed gas stations would be cited in Abuja and Lagos by the Nigeria Independent Petroleum Company Ltd (NIPCO), the initiator of the projects.

The minister on a visit to the Edo State Deputy Governor, Mr. Lucky Imasuen ahead of his tour of the company's facilities in view of the December Commissioning, said the Benin Station would be the first to come on stream very soon as construction works on it was almost completed.

Noting that trillions of standard cubic gas was yet to be tapped in the country, he predicted that gas would soon overtake petroleum in the world as far as energy consumption is concerned.

He however lamented that the country was involved in colossal waste of its gas resource through flaring.

Of the 185 proven trillion cubic standard gas reserves in the country, he said, 125 million standard cubic gas is flared daily, saying that, that was the same quantity countries like Trinidad and Tobago were using to develop their economy.

While revealing that the Federal Government has put in place a master plan to harness, centralize and distribute gas to all parts of the country, the Minister said that his ministry has put in place a gas pricing policy which has four categories.

Responding, Mr. Lucky Imasuen thanked NIPCO for its initiative and assured the company of Edo State Government support, noting that apart from the state being business friendly, the company's initiative would benefit the economy and the people of Edo State.

While commending the Minister, Mr. Imasuen stated that his leadership role has redirected the country to focus on the usefulness gas

[Håkønljzberg]

FG to Set Up 100 MW Plant in Kaduna

THE Federal Government said it would establish a 100 megawatts electricity plant in Kaduna State soon in its determination to boost the epileptic power supply in the country.

The plant will be powered by fuel.

This is coming against the backdrop of a promise by the state government to invest over N600 million for the provision of solar powered energy to 12 villages in the state this year.

Minister of Energy (Power), Hajia Fatima Balarabe Ibrahim, made this known when she paid a courtesy visit on Governor Mohammed Namadi Sambo at the the Government House, Kaduna, yesterday.

Ibrahim said that government would also "encourage the 36 state governors to do something towards the enhancement of power supply," even as she stressed that the country has started to experience steady power supply with current level of 3,100 megawatts of electricity being distributed by the Power Holding Company of Nigeria (PHCN).

According to the minister, "we are aware of all you have been doing with the other governors, the Northern governors in particular, in order to bring more supply to the people and that has gladdened our hearts.

"We are coming here to partner with you as best as we can. As we have often said, we would like to encourage all the governors that are really doing something towards enhancement of power supply in the country.

"You have approached us also on sharing in particular area in this place in Kaduna so that you can put up a power plant and that I would like to see myself with the people of Kaduna State and we have come to examine that possibility.

"I would like to assure you and the people of Kaduna state that we would do everything possible to stabilize power supply in this state."

In his response, Governor Sambo said that electricity was the major infrastructure needed to provide realize the Vision 2020 goals of the Federal Government. He said that his government would also explore the possibility of using coal for power generation.

"There is no doubt that we are proud we all the effort the Federal Government is making towards ensuring that power is adequately provided in this country.

"We are all aware of the fact that power is the major infrastructure that would lead to our success in achieving the objectives of Mr. President that by the year 2020, Nigeria would be among the developed 20 nations of the world.

As I speak now, all the 19 northern states have established agencies for power generation. As members of this agencies we have technical committees that are working very hard now in the area of thermal power production through gas and coal.

"We are working into areas that we could put an emergency contribution by fuel power generation system. We are looking at solar, this year we are investing about N600 million in providing power to 12 villages in Kaduna state by using solar and we are looking at all avenues.

"In about 12 states at present studies are going on in the production of power through hydro power generation plants," Sambo said.

[Håkønljzberg]

Nigeria, Ghana Partner On Social Security

Nigeria Social Insurance Trust Fund (NSITF) and Social Security National Insurance Trust (SSNIT) of Ghana, have agreed to work together to establish an International Social Security Training outfit for the benefit of the sub-region and the continent.

Managing Director/CEO of NSITF, Dr Enukora Joe Okoli, said the two bodies arrived at this during the five-day study tour of SSNIT's operations.

He said under the agreement, the two heads would make joint applications for partnership funding from world bodies and international donor agencies for the benefit of the two countries.

It was also agreed that SSNIT and NSITF would continue sharing capacity aimed at building world-class social security institutions dedicated to economic security of workers in both countries.

Director-General, SSNIT, Mr Kwasi Osei, expressed the probability of NSITF overtaking SSNIT, considering its enormous resources and pedigree.

SSNIT is a statutory public trust charged with the administration of Ghana's National Pension Schemes. The Scheme is currently the largest non-banking financial institution in the country and the single institutional investor on Ghana's stock exchange that is helping to nurture development and sustenance of capital market in Ghana.

It is self-financing, through contributions of employers and employees, totalling 12.5per cent and five per cent of the basic salary respectively.

[Håkønljzberg]

Country's Oil Output Rebounds, Now 1.9 mbpd

NIGERIA'S crude oil output bounced back from two months consecutive drop which saw it lose its number one slot as Africa's top producer to Angola, to close at 1.9 million barrels per day in the month of July, a Platt survey revealed.

The country's oil production also showed signs of improvement in the first few days of August with an average of more than 2.1 million barrels per day (bpd).

Nigeria's production got a boost from restored shut in volumes, increasing by 100,000 bpd in July to average 1.9 million bpd over the month.

However, indications are that the volume of crude oil still shut in owing to attacks by militants as well as technical issues at fields in the Niger Delta stood at 1.533 million bpd, more shut in volumes than has ever been recorded in peace time anywhere.

In May, Nigeria's output stood at 1.86 million barrels per day, while production for June dropped to 1.8 million barrels per day.

Angola's output has risen steadily as new fields off the country's coast come on stream and this is on course to climb by 30,000 barrels per day in July.

The Organisation of the Petroleum Exporting Countries' (OPEC) 13 members boosted their collective crude oil production by 300,000 barrels per day (bpd) in July to average 32.77 million bpd over the month, according to a Platts survey of OPEC and oil industry officials just released.

Excluding Iraq, the 12 members bound by output agreements produced an average 30.31 million bpd in July, or 330,000 bpd more than June's 29.98 million bpd and 637,000 bpd in excess of their 29.673 million bpd target, the survey showed.

"It's notable that suddenly, with output rising, OPEC officials are concerned about adherence to quotas and oversupply," said Platts Global Director of Oil John Kingston. "However, as we look toward the fourth quarter of the year, barring a more significant decline in demand, the world is going to need OPEC oil to avoid a larger inventory draw than is normal for the fourth quarter. Pulling inventories at that rate would be very bullish for prices."

Increases totalling 390,000 bpd from Iran, Kuwait, Nigeria and Saudi Arabia were partly offset by declines in Libya and Iraq.

The biggest single increase came from Saudi Arabia, which delivered on its promise to boost output to 9.7 million bpd in July from 9.45 million bpd in June.

Libyan volumes, already down in May and June because of repair work at Total's al-Jurf field, fell further in July as maintenance work got underway on a pipeline linking the Waha and Defa oil fields.

Libya's top oil official, Shokri Ghanem, who heads the National Oil Corporation, told Platts last week that the work on the pipeline and the field would continue for some weeks.

Iraqi volumes fell by 30,000 bpd to 2.46 million bpd. OPEC ministers meet September 9 in Vienna. International crude futures prices have fallen by some 20 per cent from records above $147/barrel in early July and some ministers have talked of possible intervention if prices continue on their sharp downtrend.

Iranian oil minister Gholamhossein Nozari said earlier this month that if prices continued to fall, the Vienna meeting would focus on closer adherence to production targets, while his Qatari counterpart, Abdullah al-Attiyah, said OPEC was ready to intervene to restore market balance if it felt supply was outstripping demand.

[Håkønljzberg]

Home Remittances By Nigerians Abroad Rise to $17.9 Billion

Nigerians living abroad remitted the sum of US$17.9 billion back home last year (2007), compared to the $10.5 and $6.5billion they remitted in 2005 and 2006 respectively.

The Federal Government's Economic Management Team (EMT), which disclosed this in Lagos recently, attributed the rising remittances to the increased confidence in the economy. The committee said the economy was buoyant and now well-rated by international rating agencies.

"Both Fitch and Standard and Poor rating agencies have reaffirmed Nigeria 's overall rating at BB-and indicated the outlook to be stable," said Dr. Shamsudden Usman, Finance Minister and Chairman of the Economic Management Team.

Dr. Usman said the country's debt profile was sustainable, with a substantial part of it in local currency.

Dwelling on the outlook of the economy for the second half of the year 2008, the EMT chairman expressed optimism of an increase in foreign investment inflow, especially with the planned PPP framework and continued economic reforms.

According to Usman, "domestic production is expected to increase with improvement in the power sector, while external reserves will continue to be favourable due to favourable international oil prices. Exchange rate will also remain stable," he said.

However, the committee identified some factors which might work against the economy for the rest of the year. These include: the Niger Delta crisis, inflationary pressures arising from high food and energy prices; especially diesel, slow implementation of the capital budget and the high growth rate of broad money.

[Håkønljzberg]

Country, IMF in Fresh Deal

The Federal Government's talks with the International Monetary Fund (IMF) to develop a new (Policy Support Instrument) economic policy package for the country has reached an advanced stage.

The Policy Support Instrument is to act as a guide, framework and monitor implementation of government economic programme to enable Nigeria maintain prudence in spending to ensure a stable macro economic environment.

Government sources said the Policy Support programme being worked upon would embody the Yar'Adua 7-point agenda, the 2020 economic vision of the President into the NEEDS 2 document.

The policy being worked upon, it was learnt, has three basic principles - empowering Nigerians, encouraging the private sector to lead the economy and changing the way government does business.

Discussions are said to be focussed on how to integrate these programmes into one acceptable document with the targets of reducing poverty in the country and meeting the millennium development goals.

Although government functionaries are keeping the progress of the discussions so far under wraps, those close to the discussion said the technicality of developing the framework had been discussed between the Resident Representative of IMF, Michael Bell, Ministry of Finance and CBN officials while top government functionaries who make up the economic team of the present administration and that government has agreed that the IMF should monitor the country's economic programme to ensure proper implementation.

According to Ministry of Finance officials, high level talks have been held and will be concluded with the IMF at the forthcoming IMF/World Bank Annual Meeting in Washington in October where a position will be taken by the Fund.

Confirming the ongoing discussions with the IMF for a second Policy Support Instrument recently in Lagos, Minister of Finance, Dr. Shamsudeen Usman, said the talks with the IMF were not to take the dreaded loans and its attendant conditionality but to guide, monitor and advise government. He said the last four years of Obasanjo's administration was guided by the policy support instrument.

According to the IMF, Nigeria's first policy support instrument was based on the National Economic Empowerment and Development Strategy (NEEDS), Nigeria's Poverty Reduction Strategy, and focuses on rapid and sustainable non-oil growth and poverty reduction.

There were speculations that government was about dropping NEEDS but government had come out to deny the speculations.

The earlier PSI which was approved by the IMF in October 2005 and lapsed in 2007 assisted Nigeria to develop a well-articulated and sound policy framework, including prudent macroeconomic policies, a strengthening of institutions, and ensure a governance structure conducive to private sector activity.

Approval of a PSI for Nigeria at the time, the IMF said signified the multilateral institution's endorsement of the policies outlined in the NEEDS document.

The IMF's framework for PSIs is designed for low income countries that may not need or want IMF financial assistance, but still seek IMF advice, monitoring and endorsement of their policies. PSIs are voluntary and demand-driven.

PSI-supported programmes are based on country-owned poverty reduction strategies adopted in a participatory process involving civil society and development partners and articulated in a Poverty Reduction Strategy Paper (PRSP).

This is intended to ensure that PSI-supported programmes are consistent with a comprehensive framework for macroeconomic, structural and social policies to foster growth and reduce poverty.

Members' performance under a PSI is normally reviewed semi-annually, irrespective of the status of the programme.

The Minister of State for Finance, Remi Babalola, recently in Abuja at a conference on financing the 7-point agenda through the capital market said government will soon make public a successor programme to the PSI.

The Resident Representative of IMF, Michael Bell, recently said: "The PSI supported Nigeria's homegrown policies that were first articulated in the Nigerian Economic Empowerment and Development Strategy (NEEDS).

"After the expiry of the first two-year Policy Support Instrument (PSI) in October 2007, the Nigerian authorities indicated that they were considering a successor programme supported by the IMF.

"We understand that is still their intention and preliminary discussions with IMF staff are continuing.

The IMF stands ready to support Nigeria in any way the authorities find helpful. Any successor programme supported by the IMF would similarly be based on the authorities' policies as articulated in their policy strategy, including the seven-point agenda, NEEDS, and the national development plan."

[friendsofthecity]

Stakeholders assess new Lekki master plan
By Rasheed Bisiriyu
Published: Monday, 18 Aug 2008
The plan to give Lekki, the fastest developing area of Lagos a new look befitting of a modern city, entered another phase last week as a draft infrastructure master plan for the sub-region was presented to the public.

Governor Babatunde Fashola, who made the presentation at a stakeholders’ forum on the master plan, said the project was aimed at transforming Lekki into a new city and rescuing its huge investments and environment.

Lekki is adored for its sandy beaches, including the Lekki Beach, Alpha Beach and Eleko Beach as well as Oso Lekki Backwaters. The relics of Brazilian/Portuguese and other imposing architectures make the place a tourism goldmine.

However, concerned analysts and other stakeholders, including the state’s Commissioner for Physical Planning and Urban Development, Mr. Bolaji Abosede, are currently worried about the infrastructure decay in the area and the daily traffic congestion due to inadequate transportation.

Abosede lamented, “Today, development along the Lekki corridor is carried out disjointedly. We cannot continue to fold our arms and watch uncoordinated development, which leads to slums that are being created on a prime land bound by two waterfronts.”

The governor, however, said, “The need to arrest uncontrolled and unplanned development and growth, reorder the present and plan for the future has informed the decision of our government to prepare an infrastructure master plan for the Lekki sub-region.”

He added, “The master plan has incorporated the Lekki Free Trade Zone and Deep Sea Port, which are centres of industrial activity and employment, a new airport, an international golf course as well as Oso-Lekki Festival (season meeting of the Atlantic Ocean and fresh water lagoon) to attract international tourism and business, and two alternative highways to the Lekki-Epe Expressway.” According to him, the project is a partnership effort between the state government and the primary stakeholders in the area, which include the landowners, property owners, businesses, multinationals, property developers and non-governmental organisations.
An executive summary of the master plan shows that the project area under consideration is about 60,000 hectares, with the unique characteristics of the Atlantic Coast, Lagos lagoon and the inland natural areas tobe protected and enhanced to give Lekki city special natural ambience.

The plan also proposed the division of the new city into five linear development zones, which include the Lagoon, the Atlantic Coast, the North Urban, South Urban and the Natural Park.

In addition, the updated land use master plan will provide a total built-up area of about 10,380 hectares and can accommodate a residential population of about 3.4 million persons and non-residentail population such as tourists, hotels, commercial, offices, medical and industrial of about 1.9 million persons.

[Håkønljzberg]

FG to Build Five Million Metric Tones of Silo Facilities

AS part of its effort to respond to the global food crisis, the Federal Government has concluded plans to increase the country's silo storage capacity to over 700,000 metric tones by the first quarter of next year.

This is even as the country has expressed its intention to engage the expertise of the Government of the United States of America towards assisting Nigeria in the processing and storage of her agricultural products.

Minister of Agriculture and Water Resources, Dr. Sayyadi Abba Ruma who disclosed this when he received the Charge d'Affairs of the American Embassy in Nigeria, Lisa Piascek, in his office last Thursday in Abuja disclosed that Nigeria remained committed to ensuring that its agricultural products compete favourably in the international market through the creation and sustenance of a value chain.

In a statement issued by the Minister's Press Secretary, James Odaudu, Dr. Ruma said "Nigeria's march towards an agricultural revolution is being hampered by some challenges, among which is the guarantee of affordability and availability of inputs and low tractorization".

He contended that those challenges informed the government's decision to deregulate the supply of agro-inputs as from 2009.

Responding, the American Charge d'Affairs, Piascek said it is not out of place that Nigeria take the global food crisis as a serious challenge to increase its agricultural productivity since it has the responsibility to feed not only its citizens, but the West African sub-region.

She assured the Minister that the American government, through the United States Agency for International Development (USAID) would provide $25 million as development assistance to Nigeria out of a total of 770 million dollars provided for its global response to the food crisis.

Meanwhile, the Minister is scheduled to lead a delegation of stakeholders in the agricultural sector on an investment drive to the United States soon.


AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are

[Håkønljzberg]

Country Now World's Highest Producer of Cassava

NIGERIA is now ranked the world's highest producer of cassava with a production capacity of 40 million metric tonnes.

The country also ranks world's highest in the production of yam and cocoyam with the production capacity of 30 million metric tonnes and 4 million metric tonnes, respectively.

The Executive Director of National Roots Crops Research Institute (NRCRI), Umudike, Abia State, Dr. Kenneth Nwosu who disclosed this also acnnounced that his institute has developed and releasd over 27 cassava varieties, which he said has 35% potential higher yields than the local bests.

Nwosu said that five of the new varieties were recently developed to "checkmate the insurgence of the dreaded African cassava mosaic virus disease".

Nwosu who spoke while addressing the 17th Annual conference of Nigerian Rural Sociological Association, further announced that the institute has been mobilized by the Federal Government "for the training of various rural women groups in the entire Niger Delta states".

"This institute, in collaboration with IITA Ibadan, has developed and released a total of seven hybrid yams that are resistant to major pests and diseases and have potential of doubling the yields of most existing landscapes.

This breakthrough is the first of its kind globally", Nwosu noted.

[sammyjay77]

Nigeria forex reserves rise to $63 billion in mid-August

Fri 29 Aug 2008, 12:14 GMT

LAGOS (Reuters) - Nigerian foreign exchange reserves climbed to $62.81 billion in mid-August from $60.31 billion at the end of July, the central bank said on Friday, bolstered by increased oil revenue in the world's eighth biggest exporter.

Nigeria's oil output fluctuates, partly because of militant attacks on production facilities in the Niger Delta, but high global oil prices have boosted its earnings this year.

Oil production in Nigeria, sub-Saharan Africa's second largest economy after South Africa, currently stands at around 1.9 million barrels per day.

Forex reserves rose 38 percent year-on-year from $43.85 billion on August 15, 2007, the central bank said on its Web site.

They climbed to $64.73 billion on August 11, before dipping back to $62.81 billion due to increased dollar sales to retail banks by the regulator at its twice-weekly auction.

The West African country's forex reserves have consistently risen since 2005 on the back of high oil prices, even though violence in the delta has curbed output by around a fifth.

[Kwame]

Wow. I didn't realize the LFTZ project was that huge!