Nigeria’s economy losses an estimated ₦10.1 trillion yearly to the unreliable power supply, the World Bank has said. In its recent report, the World Bank noted that transition from a publicly-owned to largely privately-owned power market, which began in 2013, did not bring the expected outcomes as the sector is under severe stress. The lender added that the causes for the stress were interlinked and the result of key stakeholders falling short of their expected contributions for achieving sector turnaround. This, the report pointed out, has led to a lack of trust between key stakeholders and among the general public with respect to power sector improvement. A credible reform process would require an integrated approach of resolving regulatory and policy failures, and establishing a credible and fiscally sustainable financing plan by the FG to ensure full funding for tariff shortfalls, among other measures, the bank suggested, describing the power sector, particularly the distribution segment, as “operationally inefficient with high losses.” Power sector recovery is critical for the FG of Nigeria’s response to the COVID-19 outbreak, the bank added.
Military sources have told Daily Trust that Boko Haram insurgents use weapons and hardware stolen during attacks on military formations in the northeast to carry out their terrorist activities. Reacting to a statement by the Coordinator, Defence Media Operations, Major-General John Enenche, that the military does not know those sponsoring terrorist groups in the country and how they get their weapons, one of the sources said it is not correct to say that the weapons being showcased by the terrorists are anything different from those procured for Nigerian soldiers. Most of these vehicles, armoured vehicles and other military hardware were stolen from military bases, from frontline troops, and some other military locations. The terrorist groups also get their weapons from neighbouring Lake Chad countries at giveaway prices as it is easier to move arms and ammunition to Lake Chad Basin because of porous borders, the source said.
A BusinessDay report shows that the portion of funds of some banks held by the central bank is far in excess of 60 percent, a clear regulatory breach. The implication of this is lower profitability for lenders and then stifling access to finance for millions of small businesses in Africa’s largest economy. Quoting bankers, Businessday reported that the CBN currently holds as much as ₦10.3 trillion in CRR, which adds up to a CRR of between 58 and 60 percent of total naira deposits of ₦17 trillion While the official Cash Reserve Ratio for banks is 27.5 percent. The investigation by the newspaper shows that at 60 percent, Nigeria’s CRR is not only more than double the official 27.5 percent rate, it is the highest across developed, emerging and frontier markets. The ₦10.3 trillion the CBN holds is also about the size of the country’s federal budget. The amount, N10.3 trillion, is also 200 times the size of a ₦50 billion fund set up by the CBN to support households and small businesses whose livelihoods and business activities had been upended by the COVID-19 pandemic.
The volume of petrol imported into Nigeria in Q1 2020 rose by 9.24 percent, compared to the same period in 2019, data from the NBS has shown. The country imported 5.32 billion litres in Q1 2020, up from 4.87 billion litres in Q1 2019. 5.61 billion litres were imported in Q2; 5.09 billion litres in Q3, and 5.26 billion litres in Q4 of 2019, the report said. Aside from petrol, a total of 1.66 billion litres of diesel was imported in Q1; 258.27 million litres of aviation fuel; 28.33 million litres of LPFO, and 135.14 million litres of liquefied petroleum gas were imported into the country in Q1. The NBS said 5.36 billion litres of petrol, 1.56 billion litres of diesel, 8.73 million litres of household kerosene, 283.90 million litres of aviation fuel, 23.36 million litres of LPFO and 290.24 million litres of LPG were distributed across the country during the period under review. Meanwhile, crude oil exports from Nigeria to Europe have been the lowest in two years, according to Refinitiv Eikon data, while volumes of cheaper US light oil hover near all-time highs. But traders said with the US West Texas Intermediate firm in Europe to around $1 above dated Brent, Nigerian grades at around the same price were coming into play.