Some economic news…
Courtesy of the newspapers, here are the major Nigerian economic news from the past week:
FG, JV firms invest N2tr in LNG export projects
The Nigerian National Petroleum Corporation (NNPC) has invested $13 billion (N1.52 trillion) on behalf of the Federal Government and other shareholders of the Nigerian Liquefied Natural Gas (NLNG) to execute six LNG trains located on Bonny Island in Rivers State. The period of investment was from 1996 when trains one and two projects were initiated and December 2007 when train six started export of LNG. The shareholders include NNPC, 49 per cent; Shell Petroleum Development Company (SPDC), 25.6 per cent; Total LNG Limited, 15 per cent and Eni, 10.4 per cent. Mr. Chima Ibeneche, managing director, NLNG, disclosed at the 2008 conference of the Nigerian Gas Association (NGA) in Abuja yesterday that the investment contributed immensely to the reduction in the volume of gas being flared by shareholders of the company to ensure cleaner environment in their area of operations. For instance, Ibeneche said the investment made it possible for the company to acquire 24 dedicated and chartered vessels to facilitate the export of LNG to its buyers located in Europe and the United States of America. According to him, “We have been able to raise the export level from 7.84 billion cubic metres (bcm) in 2002 to 21.15bcm in 2007, representing 9 per cent of the global supply record.”Ibeneche said the investment by the shareholders has assisted to boost Nigeria’s revenue generation from the production of natural gas in line with the Federal Government’s aspiration of generating the same level of income from the gas sub-sector as in oil by 2010.
Source: Financial Standard Newspaper
House Passes N683bn Supplementary Budget
The House of Representatives yesterday passed the N683 billion Supplementary Appropriation Bill 2008. The bill which was similarly passed by the Senate last week sailed through at the lower chambers of the National Assembly after the House in plenary had received the report of the Committee on Appropriation on it. Before passing the bill, the legislators went through the various sections of the additional expenditure proposed by President Umar Musa Yar Adua and directed the Accountant General of the Federation (AGF) to ensure the release of the appropriated funds before the December 31, 2008 deadline set in the budget. The House warned that no part of the amount shall be released from the Consolidated Revenue Fund of the federation after the end of the current year.The supplementary budget seeks to authorise the issuance from the Consolidated Revenue Fund of the federation a total sum of N683,301,968,287 only.
Source: Thisday Newspaper
FEC Approves Measures to Fast-track Budget Implementation
Federal Executive Council yesterday approved measures to henceforth, fast- track budget implementation.Briefing State House Correspondents after the meeting presided over by President Umaru Musa Yar’Adua, which lasted from 11.20 a.m to 6.35 p.m, Minister of Information and Communication, John Odey, in company of Minister of Foreign Affairs, Ojo Madueke, and Agriculture and Water Resources Minister, said Council approved implementation of measures recommended by the committee set up by it to review the process of budget implementation for fast-tracking the process.He said “Council had at one of its meeting, frowned at the slow pace of budget implementation by Ministries, Departments and Agencies (MDAs) hence it had subsequently set up a 10-member committee with Head of Service of the Federation as Chairman. The committe is to study the budget implementation process and review procurement procedures and practices and make recommendation on how to eliminate bottlenecks and hindrance so as to fast-track the process.“The committee, after its analysis, identified five major causes of delay in budget implementation by MDAs, to include lack of understanding of guiding laws and regulations, delays caused in obtaining approvals of the process, delays in processing of payments, challenges in documentation and delays in processing memo’s to council.”“The committee recommended that to fast-track budget implementation in the MDAs amongst which are that contractor should be paid within two weeks from the time approval is granted by accounting officers, there should be training and re-training of procurement officers.”
Source: Thisday Newspaper
Foreign Investors see capital market recovering to $100 billion
Foreign investors, including portfolio and asset managers, meeting in London yesterday predicted the capitalisation of the Nigerian Stock Exchange, which now stands at between $60 billion and $70 billion will recover and quickly rise to $100 billion once the current downward climate comes to an end. They also showed their growing appetite for opportunities in Nigeria by demanding that the Federal Government moves to introduce a global dollar bond to the international financial market. Such a bond will enable Nigeria raise much needed funding for key infrastructure projects.Hendrik du Toit, chief executive officer, Investec Asset Management, said the Nigerian capital market remains lucrative and is being keenly observed by international investors who are always looking to take positions when sentiments become right again. The Nigerian market has only suffered like other emerging markets following the global financial crisis, du Toit said. But Nigeria needs to position itself by thinking differently to ensure that the economy continues to attract private capital and foreign direct investments (FDI).
Source: Businessday Newspaper
Tags: News
News | 
donne4real | November 11, 2008