MONDAY 18/7/2022-CRUDE OIL PRICE HITS OVER $100 AGAIN
The price of crude oil climbed above the $100 mark on Sunday hitting $101.16/barrel after trading around $98/barrel since Tuesday, as oil marketers in Nigeria maintained an increased pump price for Premium Motor Spirit, popularly called petrol, higher than the approved rate. Industry figures seen on Sunday showed that Brent, the international benchmark for crude, moved up by $2.06 or 2.08 per cent to close at $101.16/barrel as at 6.36pm Nigerian time. On Wednesday, The PUNCH reported that Brent fell below $100 per barrel the preceding day. The report showed that Brent dropped in price by $7.72 or 7.21 per cent to close at $99.38 per barrel as at 7.45pm Nigerian time last Tuesday, a development that persisted for most part of last week. The PUNCH had also reported that the fluctuations in oil price came as latest figures released by the Organisation of Petroleum Exporting Countries showed an increase in Nigeria’s oil production from 1.024 million barrels per day to 1.158mb/d. The OPEC Monthly Oil Market Report for July 2022 showed that Nigeria’s oil production increased by 134 million barrels per day in June 2022, according to crude oil production data obtained by OPEC from direct communication. The report stated that Nigeria’s oil production in May 2022 was 1.024mb/d, but this moved up to 1.158mb/d in June.
TUESDAY 19/7/2022- CBN RAISES INTEREST RATE TO 14%
The Central Bank of Nigeria, on Tuesday, raised the interest rate to 14 per cent.The new interest rate comes barely two months after the apex bank raised the interest rate to 13 per cent. This was disclosed by the governor of the apex bank, Godwin Emefiele, after the committee’s meeting at the CBN headquarters in Abuja. The governor of the apex bank said the hike in interest rate would help tame rising inflation. The interest rate was raised from 11.5 per cent to 13.5 per cent. Justifying the raise in May, Emefiele said there were suspicions there might be an aggressive accretion of inflation. To prevent the looming inflation, he said, the MPC had to increase the monetary policy rate by 150 basis points.
WEDNESDAY 20/7/2022-DMO RAISES N8.8BN FROM SAVINGS BOND
The Debt Management Office (DMO) has stated that it raised N1.367 billion from the Federal Government Savings Bond auction held this month bringing the total value of the amount raised in the year to N8.824 billion. Investors had put in N451.037 million in the two-year Savings Bond which was raised at 8.075 per cent and N915.865 million in the three year paper raised at an interest rate of 9.075 per cent per annum. The FGN Savings Bond, which was introduced by the DMO is specifically designed for retail investors, and to encourage financial inclusion with investors being able to invest from N5, 000. Last month, the DMO had raised N1.874 billion from the Savings bond. In June, 701 retail investors had put N769.92 million in the two year Savings bond, which was raised at 8.205 per cent while 621 investors had put N1.104 billion in the 3 year bond which was raised at 9.205 per cent.
THURSDAY 21/7/2022- CBN PANEL WORRIES OVER NIGERIA DEBT REPAYMENT CAPACITY
The Monetary Policy Committee of the Central Bank of Nigeria has raised concerns over the nation’s debt sustainability in light of current global uncertainties. According to the committee, the Federal Government’s increasing debt profile is worrying, noting that there is a need for the government to urgently diversify its revenue base. The MPC disclosed this in a document titled ‘Central Bank of Nigeria Communiqué No. 143 of the Monetary Policy Committee Meeting Held on Monday 18th and Tuesday 19th July 2022.’ It stated, “The committee noted the Federal Government’s increasing debt profile and expressed concerns over debt sustainability given that global uncertainties remain elevated. “The MPC thus reiterated its call to the Federal Government to urgently diversify its revenue sources through various initiatives, such as, the development of a viable tax framework for the extractive and mineral export industries, to strengthen its fiscal buffers.” According to the Debt Management Office, Nigeria’s total public debt stock rose to N41.60tn in the first quarter of 2022. Nigeria reportedly spent 86 per cent of its revenue on servicing debt in 2021
FRIDAY 22/7/2022-BAN ON MINING’LL WORSEN INSECURITY, MINERS TELL FG
Reacting to the development, operators in the mining sector stated that the ban on mining activities by the Federal Government would render thousands of youths jobless and further worsen the state of insecurity in Nigeria. Speaking under the aegis of the Miners Association Nigeria, the operators wondered what was the relationship between mining activities and the recent jailbreak in Kuje Correctional Centre, Abuja. The National Secretary, MAN, Dele Ayanleke, told our correspondent that though the association was expecting more details about the proposed ban by government, care must be taken not to worsen insecurity in Nigeria through the ban. Asked whether it was justifiable to say terrorists got some of their funding from illegal mining activities, Ayanleke replied, “The issue is that it cannot be a general problem. Before government will say that, one would expect that they must have done their due diligence and conduct in-depth investigations into what is actually happening. “But the fact is that it is not in every part of Nigeria that this kind of situation is happening. We are aware that in the North-Central, around Zamfara and Katsina there has been issues. “And even as we speak, for more than two years now, mining activities have been banned in Zamfara.