Gas supply for the generation of electricity has witnessed a decline over several months, a development that dragged down the quantum of power that was generated on the Nigeria’s grid. The supply plunged by 97 million standard cubic feet per day between March 2018 and January this year, preventing a total of 368 megawatts of electricity from being generated on the grid. According to the NNPC, in March 2018, domestic gas supply for power generation from the state oil firm was 854mmscfd, but dropped to 757mmscfd in January this year. The power generated by the plants dropped to 3,124MW in January 2019 due to the reduction in the volume of gas, 757mmscfd, which they received, compared to the 3,492MW of electricity generated by gas-fired power plants from the 854mmscfd supplied to them in March last year. The percentage contribution of the gas-fired power plants, including hydro, stood at 84.1 percent in March 2018. This reduced to 76.4 percent in January this year. The unavailability of gas, according to the Advisory Power Team in the Office of the Vice-President, was the dominant constraint to power generation in Nigeria. Aside the drop in power generation, the country’s electricity grid witnessed two system collapses in May 2019.
Many multinational firms quoted on the Nigerian Stock Exchange experienced huge losses in the last two years as foreign investors pulled out ₦1.77 trillion from the stock market within the period. The Guardian reported that most withdrawals were due to insecurity and economic uncertainty. ₦435.31 billion in FPI outflow was recorded in 2017, while foreign investors withdrew ₦642.65 billion during the corresponding period in 2018. After the January and mid-February 2018 rally, the market recorded unprecedented reversal in performance contrary to predictions by analysts, where the capitalisation, which stood at ₦15,549 trillion as at 28 February, 2018, dropped to ₦13,766 trillion by 30 May, 2018, representing a ₦1,783 trillion or 12.9 percent loss.
The Securities and Exchange Commission has ordered Oando to suspend its AGM which was initially scheduled for today until further notice. The directive announced in a statement Monday is due to the ongoing litigation between the firm’s Group CEO, Wale Tinubu, and the regulator. The suspension, according to the commission is “to allow the parties to maintain status quo.” The regulator had on 31 May, ordered Wale Tinubu and other affected board members to resign. The firm, however, replied the SEC, saying that the alleged infractions and penalties were unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the company. SEC announced on 2 June that it had set up an interim management team to oversee the affairs of Oando and conduct an extraordinary general meeting on or before 1 July, 2019, to appoint new directors who would subsequently select a management team for the company. Two independent non-executive directors of the oil firm, Sena Anthony and Oghogho Akpata, resigned from the company’s board following SEC’s action against Wale Tinubu, and his deputy, Omamofe Boyo.
Banks have started moves to acquire new legal powers to strengthen loan recovery which deteriorated in Q1 2019 when the industry suffered a major decline in the amount of recoveries made. An analysis by the Vanguard of the Q1 financial results of ten banks showed that loan recoveries dropped by 47 percent, year-on-year, to ₦3.1 billion from ₦5.8 billion in Q1 2018. The ten banks are Access Bank, Guaranty Trust Bank, FBN Holdings, UBA, Zenith Bank, Fidelity Bank, Stanbic IBTC Bank, Sterling Bank, Union Bank, and Wema Bank. The banks blamed the sharp decline on the lull in economic activities following the general elections held during the quarter. However, loan recovery experts cited other factors including the Christmas holidays, the legal system and an unwillingness of debtors to repay.