CAPITALDIGEST DAILY NEWS, SEPTEMBER 13 2021

MONDAY 6/9/2021 – NNPC EARNED N4.61TN, SPENT N4.52TN IN 2020 — BUDGIT The Nigerian National Petroleum Corporation earned revenue of N4.61tn and spent N4.52tn in 2020, according to a report released on Friday. The report, titled ‘2020 NNPC Annual Performance Review’, was developed by BudgIT in partnership with Oxfam. According to the organisations, NNPC’s revenue in 2020 showed a 23.8 per cent decrease from the N6.05tn it earned in 2019. The report said, “The expenditure of all its subsidiaries stood at N4.52tn. Total crude oil production suffered an 11.61 per cent decrease, from the 734.27 million barrels produced in 2019 to the 649.00 million barrels produced in 2020. “Pipeline breaks, a key cause of oil revenue leakage and production loss, had a 70.28 per cent decline from 1,484 breakpoints in 2019 to 441 breakpoints in 2020. Likewise, a corresponding 57.87 per cent decline in NNPC’s spending on pipeline maintenance costs was recorded as it plummeted from N126.66bn in 2019 to N53.36bn in 2020.”According to the report, NNPC’s ailing refineries, led by Kaduna Refining and Petrochemical Company, wiped out a total of N100.03bn from the corporation’s revenue in 2020, despite past announcements of investments in turnaround maintenance. “Also, despite announcing a deal to boost PHRC’s performance through a colocation agreement with Maire Tecnimont SPA a few years ago, the Federal Executive Council recently approved another $1.5bn for a rehabilitation exercise of the PHRC,” it said. The report noted that the global oil and gas industry faced the twin shocks of the oil price crash and the COVID-19 pandemic last year, influencing demand and supply of crude oil and plunging Nigeria into its second recession in six years. It said the amount the NNPC claimed as crude oil losses rose by 35.33 per cent from N3.46bn in 2019 to N5.35bn in 2020, while NNPC’s product losses declined from N32.96bn in 2019 to N15.71bn in 2020. According to the report, NNPC has struggled to keep its refineries operating profitably. It said in 2020, the refineries were out of operation, adding that the last time the refineries were in operation was July 2019.   TUESDAY 7/9/2021 – INVESTORS LOSE N4.23BN AS CONSUMER GOODS STOCKS DECLINE The equities market of the Nigerian Exchange Limited declined by N4.23bn at the end of trading on Monday amid selloffs in consumer goods stocks. The NGX All-Share Index declined by a marginal 0.02 per cent, closing at 39,252.89 basis points from 39.252.89bps on Friday while the market capitalisation dropped to N20.45tn and N20.56tn. The trading volume on Monday rose by 17.00 per cent to 210.95 million shares valued at N1.38bn in 3,989 deals from the 180.30 million shares worth N1.72bn exchanged in 3158 deals on Friday. Analysing by sectors, the NGX Consumer Goods Index shrank by 0.41 per cent, missing out on gains made in other sectors. The NGX Banking, Insurance, Oil & Gas, and Industrial indices increased by 0.48 per cent, 0.04 per cent, 0.32 per cent and 0.03 per cent, respectively. Stocks on the Premium Board saw gains on average as the index rose by 0.05 per cent, while the NGX Main Board decreased by 0.09 per cent. Twenty-one tickers gained at the end on Monday, just as 15 saw losses in their share prices.   WEDNESDAY 8/9/2021 – BANKS SET TO IMPLEMENT CBN DIRECTIVE ON FOREX DEFAULTERS Banks are set to implement the Central Bank of Nigeria’s directive to publish the names and Bank Verification Numbers of customers that flout its forex rules. In a mail to its customers, the United Bank for Africa said, “In line with our promise to keep you up to date on policies that may affect you, please note that the CBN has directed all banks to publish a list of PTA/BTA defaulters on their website. “Customers involved in fraudulent practices such as presenting fake visas or cancelling airline tickets after receiving PTA/BTA and failing to return the funds received to the bank within two weeks will have their details published (name and BVN) on our website. “We encourage you to please adhere to all CBN guidelines as directed.” The CBN recently directed all commercial banks to publish the names and BVNs of customers who engage in fraudulent and unscrupulous practices to obtain foreign exchange from banks on their websites.   THURSDAY 9/9/2021 – NAIRA EXTENDS FREEFALL AS DOLLAR HITS N535 The Nigerian currency extended its slide against the dollar on Wednesday, dropping to a new all-time low at the parallel market in Lagos. The naira has been falling steadily since the start of this month amid the lingering scarcity of foreign exchange in the country, despite the rise in forex reserves. The value of the naira fell against the US currency at both the parallel market and the Investors’ and Exporters’ forex window on Wednesday. The local currency, which stood at 526/$1 at the end of last month, fell to 535/$1 at the parallel market on Wednesday from 532/$1 on Tuesday. It has lost 5.73 per cent of its value since August 4, when it closed at 506/$1. The naira dipped to 730 against the British pound sterling at the parallel market from 727/£1 on Tuesday, while the euro rose to N629 from N626. At the I&E window, the naira weakened by 0.20 per cent to 411.50/$1 on Wednesday, according to FMDQ Group. No less than 55 per cent to 60 per cent of Nigerian forex transactions are traded at this window, which is used by the Central Bank of Nigeria  and most exporters and investors, according to Financial Derivatives Company Limited.   FRIDAY 10/9/2021 – CBN SAYS E-NAIRA WILL STRENGTHEN BANKING SYSTEM The Central Bank of Nigeria has said e-Naira will strengthen the banking system and make it easier to comply with existing laws such as anti-money laundering, customer protection against fraud and ensuring the safety and stability of the payment system. The Deputy Governor Operations, Central Bank of Nigeria, Mr Folashodun Shonubi, said this at the Chartered Institute of Bankers of Nigeria advocacy series webinar held on Thursday. Shonubi said, “The Central Bank in its implementation has ensured the e-Naira feeds our economy and provides greater value. “The central bank digital currency offers all the benefits of cash but in digital form. Every single digital currency is an electronic version of the cash, the legal tender. When you make a cash payment, settlement is done instantly; digital currencies entail the same promises and even more.” He added, “CBDC offers a safer option from the privately issued cryptocurrency which have been based on the possibility to enable cheaper transactions but have now been used for investment. “The intention is not to eliminate other forms of payment but to complement the current areas of payment options, thereby ensuring the stability of the payment system in the long run. I expect in the coming days we will see rapid inclusion rates