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Experts Urge Nigeria, African Countries to Lay Emphasis on Natural Gas

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Speakers at the ninth anniversary lecture of the Real news Magazine have urged Nigeria and indeed African countries to stop the dependence on oil and lay emphasis on natural gas.

The speakers gave the advice at the ninth anniversary lecture and investiture into the Realnews Hall of Fame, on Thursday in Lagos, while discussing the topic: “Nigeria in the Unfolding Integration of the African Market: The Oil and Gas Perspective”.

The speakers noted that Nigeria with its enormous reserves of Gas, needed to tap into these resources to develop her economy.

Mr Simbi Wabote, Executive secretary, Nigerian Content Development and Monitoring Board, noted that Nigeria and other African countries were evidently sitting in oil and gas reserves.

According to him, the African oil map reveals the rapid spread of the discovery of hydrocarbons, especially in the last two decades.

Wabote said that it was estimated that even if the current gas consumption level in Nigeria was doubled, the country’s gas reserves would still last for another 50 years .

“Now, there is also a discussion as to 206 DCF as being the full gas reserves. And in some circles, the unproven gas reserves totaling 600 trillion cubic feet of gas.

“Between 2005 and 2015 alone. We had Ghana, Sierra Leone, Senegal, Liberia, Mozambique, Kenya, Tanzania as new additions to the League of countries with hydrocarbon resources.

“Evidently, Africa is particularly sitting in oil and gas reserves. In this year alone, Namibia announced discovery of 120 billion barrels of oil comparable to the Permian Basin in Texas, United States of America.

“Other discoveries include the two billion barrels, discovered in cote d’ivouir , 700 million barrels in Ghana and 250 million barrels of oil in Angola as new discoveries.

“With proven oil reserves of 37 billion barrels of oil, which is the levels largest in the world, and proven gas reserves of 206 trillion cubic feet, which is the ninth largest in the world.

“Nigeria is also well known as a strategic player in the global oil and gas industry,’’ he said.

Mrs Samata Bukari, Consul General, Ghana Consulate General, urged African leaders to have the political will to leapfrog the African Continental Free Trade Agreement (AFCFTA).

“First of all, there is the need to bring all Africans, particularly member states together so as to properly harness AFCFTA since it is the second largest of the world trade organization that is yet to be implemented.

“It is going to benefit Africa and reduce poverty, it will increase our trade, revive our industries, and a whole lot of technology is now going to be built and leant in our universities, particularly now that we are moving to the green economy.

“Fortunately again, Africa is lucky to have abundance of sunlight; we have all it takes to go green economy.

“So moving from fossil oils is not going to deter us to develop in any way but the most important thing for us is to have the political will,’’ Bukari said.

Earlier, Ms Maureen Chigbo, Publisher/Editor Realnews Magazine said that her choice of the topic was borne out of the realisation that at present, the Nigerian economy was heavily dependent on oil.

“As we think of weaning the country of this dependency and lay emphasis on gas (especially with the declaration of the decade for gas in Nigeria by the federal government), we believe speakers at the lecture can provide a guide to achieve this objective, especially as more oil and gas are being discovered in countries in Africa.

“And at a time the integration of the African market through the AfCFTA has begun and emphasis is shifting to sustainable renewable energy resources,’’ she said.

She said that the lecture was also an opportunity to discuss Africa’s economic development, especially against the background of ongoing debate on the AfCFTA, whose implementation began on January 2021.(NAN)

Economy

CBN’s Cybersecurity Levy Ill-timed, Negates Financial Inclusion – Expert

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CBN Governor,  Yemi Cardoso A financial expert, Prof. Uche Uwaleke says the newly introduced 0.5 per cent charges on electronic transactions as cybersecurity levy by the Central Bank of Nigeria (CBN) is ill-timed.

Uwaleke, a professor of capital market and the president of the Capital Market Academics of Nigeria, said this in an interview on Tuesday in Abuja.

According to him, the cybersecurity levy is ill-timed, coming at a time when the CBN is concerned about the high rate of financial exclusion and the increasing rate of currency circulating outside the banks.

He said that it carried the downside risk of discouraging financial intermediation as well as complicating the transmission of monetary policy with more people shunning the banks due to high charges.

“The end result is that it makes difficult effort by the CBN to tame inflation.

“So, I think the circular should be withdrawn, especially against the backdrop of assurances by the government that its plan to increase revenue would not include introducing new taxes or increasing tax rates.

“To this end, the government should suspend the policy while getting set to implement the recommendations of the Presidential Committee on Fiscal Policy and Tax Reforms,” he said.

He said that the mandate of the committee included streamlining multiple taxes and levies currently inhibiting the growth of businesses in Nigeria.

NAN reports that the CBN had on Monday directed all banks to commence charging a 0.5 per cent cybersecurity levy on all electronic transactions within the country.

The direcve was contained in a circular jointly signed by the Director, Payments System Management Department, Chibuzo Efobi; and the Director, Financial Policy and Regulation Department, Haruna Mustafa.

The circular was directed to all commercial banks, merchant banks, non-interest banks, and payment service banks.

It announced that the implementation of the levy would start two weeks from May 6.

“The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution.

“The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy,’” the circular said.

However, some 16 banking transactions were exempted from the new cybersecurity levy.

They include loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, intra-bank transfers between customers of the same bank among others.

By the calculations of the new levy, five Naira will be charged on a transaction of N1,000, while N50 will be charged on a transaction of N10,000.

Others are N500 charge on a transaction of N100,000, N5,000 charge on a transaction of N1,000,000, and N50,000 charge on a transaction of N10,000,000.

The cybersecurity levy will now be added to already existing bank charges like transfer fee, stamp duty, charges on SMS, and Vat .(NAN)

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Economy

Trading on NGX Increases by 28%, Investors Gain N467bn

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The Nigerian Exchange Ltd. (NGX) on Friday recorded 28.14 per cent increase in the value of equity transactions, resulting in investors gaining N467 billion.

Specifically, 446.57 million shares valued at N7.10 billion were exchanged in 9,297 deals, in contrast to 665.20 million shares valued at N5.

54 billion in 8,446 deals on Thursday.

Consequently, the market capitalisation, which opened at N55.

856 trillion, gained 0.
83 per cent or N467 billion to close at N56.323 trillion.

The All-Share Index also added 0.83 per cent or 825 points to close at 99,587.25, as against 98,762.78 recorded in the previous session.

As a result, the Year-To-Date (YTD) return rose to 33.

18 per cent.

Renewed interest in MTN Nigeria, alongside Tier-one banks, Presco Plc, UACN, United Capital, among other leading stocks, sustained the market’s positive trend.

Also, market breadth closed positive with 27 advanced equities outnumbering 20 declined ones.

On the gainers’ chart, Presco led by N22.90 to close at N252.80, Dangote Sugar followed closely by N4.25 to close at N47, while Ellah Lakes Plc gained 30k to close at N3.32 per share.

Jaiz Bank also advanced by 21k to close at N2.35 and Flour Mill rose by N3.25 to close at N36.80 per share.

Conversely, Conoil and Tantalizers led the losers chart by N10.80 and 4k each to close at N97.20 and 36k per share, respectively.

McNichols Plc lost 12k to close at N1.14, Linkage Assurance trailed by 9k to close at 86k and Guinea Insurance shed 3k to close at 30k per share.

Meanwhile, Access Corporation led the activity chart in volume and value with 151.80 million shares worth N2.68 billion, followed by Veritas Kapital with 49.88 million valued at N30.91 million.

United Bank of Africa(UBA) traded 32.89 million worth N845.74 million, Universal Insurance sold 27.14 million shares valued at N9.76 million and Transnational Corporation transacted 21.82 million share worth N310.32 million. (NAN)

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Economy

NDIC Increases Maximum Deposit Insurance Coverage for Failed Banks

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The Nigeria Deposit Insurance Corporation (NDIC), has reviewed upward the maximum deposit insurance coverage for depositors of all licenced deposit taking financial institutions in event of bank failure. Reports says that deposit insurance is the government’s guarantee that an account holder’s money at an insured bank is safe up to a certain amount.

The Managing Director of NDIC, Mr Bello Hassan, told newsmen in Abuja that the deposit insurance coverage level for Deposit Money Banks (DMBs) were reviewed from N500,000 to five million naira.

Bello said on Thursday, that the insurance coverage for Micro-finance Banks (MFBs) had been increased from N200,000 to two million Naira, which would provide 99.

27 per cent coverage of total depositors.

He said that Primary Mortgage Banks (PMBs) were increased from N500,000 to two million naira with full coverage of 99.34 et cent compared with the current 97.98 per cent.

For subscribers of Mobile Money Operators (MMOs), he said that the deposit insurance coverage had increased from N500,000 to five million per subscriber, per MMO.

Bello said the Payment Service Banks (PSBs) insurance coverage had also increased from N500,000 to two million naira.

He said the adoption of the revised maximum deposit insurance coverage would be supported by the Corporation’s funding, represented by the balances in the various Deposit Insurance Funds (DIFs) and expected annual premium collection.

Other support would be enhanced supervision to reduce the likelihood of bank failures, effective bank resolution frameworks and other funding arrangements provided by the NDIC Act.

Bello said that factors considered in the upward review of the coverage level were deposit distribution, impact of inflation, per capita Gross Domestic Product (GDP), exchange rate and other statistical models.

”NDIC’s mandate of Deposit Guarantee is a critical component of depositors’ protection, as it guarantees the payment of deposits up to a maximum set limit in the event of bank failure.

”The deposit guarantee, covers depositors of all deposit taking financial institutions licenced by the Central Bank of Nigeria (CBN) , which include DMBs, MFBs, PMBs, Non-Interest Banks (NIBS), Payment Service Banks (PSBs) and subscribers of MMOs.

”We need to stress that the high level of uninsured deposits posed a risk of bank runs.

”This is in line with our commitment to enhancing depositors’ protection, public confidence, financial inclusion, and stability of the financial system.

“I am pleased to announce that the NDIC’s Interim Management Committee (IMC), approved an increase in the maximum deposit insurance coverage levels for all licenced deposit taking financial institutions.

”The revised deposit insurance coverage has balanced the NDIC’s goals of deposit protection and financial system stability with incentives for depositors to practice market discipline and prevent banks from unnecessary risk-taking and moral hazard.

”Consideration was given to ensure that the coverage was limited but adequate enough to protect a large number of depositors,” he said.

The managing director reaffirmed the Corporation’s commitment to protecting depositors and contributing to the stability of the financial system. (NAN)

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