Daily Watch – Nigeria spends 80% of revenue on debt, Power hits lowest level since new government came in

3rd March 2016

  • The total trade volume of Nigeria and Turkey currently stands at $1.145 billion. Visiting Turkish President, Recep Tayyip Erdogan emphasised that the result of the trade relation was in favour of Nigeria. “Our total trade volume is currently at $1.145 billion. Our export is $314 million and our import is $831 million. As you see, the result is to the favour of Nigeria.” He pledged to encourage Turkish business men to invest in Nigeria, and called on Nigerian businessmen to invest in Turkey. Erdogan finished by saying that his country was also ready to share its experiences with Nigeria, especially in the areas of irrigation and agriculture.
  • The chairman, Senate Committee on Foreign and Local Debts, Shehu Sani (APC, Kaduna Central), has declared that Nigeria’s total debts stands at $60 billion. Sani said this when he hosted the resident representative of IDB in Nigeria, Abdallah Kiliaki. Kiliaki on his part said that Nigeria spent 80 percent of her revenue on debt servicing. Though Nigeria’s debts GDP ratio is low at 17 percent, resources being used to pay the debts were enormous going by percentages taken on yearly basis. Kiliaki said the recent visit of the 19 Northern states governors to the head office of the bank in Jeddah, Saudi Arabia, for rehabilitation assistance for the Internally Displaced Persons (IDPs) in North Eastern states, had no financing envelope agreement yet, being a sensitisation move.
  • The Nigerian Electricity Regulatory Commission says power supply through the national grid has dropped below 2,800MW due to vandalism. This is the lowest level since May 2015. Power supply, which peaked at 5000 MW in recent weeks, hit its lowest since May 2015, when it dropped to 1,327 MW just before President Goodluck Jonathan left office. Anthony Akah, acting CEO of NERC, made these disclosures while signing an MOU with the Consumer Protection Council
  • The Managing Director of Chevron Nigeria Limited, Clay Neff has said that Nigeria had lost about $21 billion in investment as a result of the dwindling oil prices, lack of investor confidence and corrupt practices in government in the country. Neff said Nigeria had the opportunity to improve its competitive position in the global oil and gas industry, and advised the country to do everything to restore investor confidence by providing competition in the oil market locally.
  • Nigeria is deploying more troops to protect oil installations to curb sabotage after a leak forced crude loadings to be suspended last month at a major export terminal according to Bloomberg news. Brigadier-General Rabe Abubakar, the military’s spokesman said that the deployments were “extra steps to ensure the protection of the facilities. Loading at the Forcados oil terminal, where Nigeria shipped around 200,000 barrels a day last year, was halted after a leak appeared on February 14. While Shell stopped short of calling it an act of sabotage, a previously unknown militant group claimed responsibility.