Business
Inflation, Interest Rates Fall
Indications emerged at the weekend that the current banking sector reforms and the relative stability in the prices of crude oil may have returned Nigeria to the path of economic stability with the remarkable reduction in inflation and interest rates.
The nation’s annual interest rates fell from 11 per cent in August to 10.4 per cent in September, thus raising the prospect of stability in the nation’s economy.
Data released by the National Bureau of Statistics at the weekend showed that the nation’s annual inflation dropped to 10.4 per cent on a 12-month basis in September from 11 per cent in August.
“The composite consumer price index or CPI rose 10.4 per cent year-on-year in September 2009 and it is slower than the 11 per cent increase recorded in the previous month,” the agency said in a report, giving no reason for the decrease.
“The monthly change of the CPI was 0.5 per cent increase in September 2009,” it added.
According to the bureau, the urban All Items Index rose by 0.2 per cent while the corresponding Rural Index increased by 0.7 per cent in September, when compared with the preceding month.
The bureau stated that the year-on-year average consumer price level as at September 2009 for urban and rural dwellers rose by 8.1 per cent and 11.5 per cent respectively.
Nigerian inflation had risen steadily since the second quarter of last year, standing at 9.7 per cent in May before soaring to 14 per cent in July owing to the effects of the global food crisis.
The Federal Government had managed to slow inflation for most of 2006 and 2007 through belt-tightening measures to achieve a single-digit rate.
Such measures included a stable exchange rate for the national currency, as well as fiscal discipline.
Checks also showed that the CBN intervention has also forced down interest rates which was pegged at 21 per cent earlier in the year. Interest rate now hovers between 18.85 and 19.89 per cent.
According to the latest figures posted on the Money Market Association site, Prime Lending rate stood at 18.85 while Normal lending was put at 19.85 per cent respectively.
In specific terms, the Nigerian Interbank Offer Rate (NIBOR) for call fell to 4.75 per cent by the end of last week from 10.37 per cent at which it closed the previous week ended October 9, 2009.
The 7-day NIBOR closed the week at 7.41 per cent from 12.50 per cent. The 90-day paper closed the week at 13 per cent from 16 per cent, while 180 day instrument dropped to 14.50 per cent as against 17.58 per cent the previous week.
Explaining the trading for last week, Head, Treasury Sales, Fidelity Bank Plc, Mr. Uvic Ogban said that the N200 billion bailout funds released to the second batch of troubled banks hit the system last week Thursday, thereby dragging down the rates.
“The market responded to the bailout fund. The other influence on the rates was the anticipation by dealers that the market will be awash with funds up till this week. The meeting of the Federation Account and Allocation Committee (FAAC) was held last week. It is expected that the fund will hit the system in the current week. In addition to the inflow expected from the economic stimulus package. Since the market respond to information, the foregoing will help sustain the low rates in the current week,” he said.
During an interactive session with journalists at the recently concluded World Bank/ International Monetary Fund (IMF) meetings in Istanbul, Turkey, CBN Governor, Lamido Sanusi, said the banking watchdog has been able to achieve macroeconomic stability, especially with both the exchange and interest rates.
He noted that when he became the CBN governor last June, inflation rate was 15 per cent but as at end of August, it had fallen to 11 per cent.
Sanusi said inflation was likely to go to nine per cent by the end of the year.
“When I became governor of Central Bank, inflation rate was 15 per cent. End of August, it was 11 per cent. The gap between the official rate and parallel rate was 25 per cent: as at today, it is 2.98 per cent. All short term money market rates today are lower than they were in December 2008.
“We’ve delivered macroeconomic stability. We’ve checked stable exchange rate-in fact, in the last one week; I have been fighting against the rapid appreciation of the naira because of return in confidence. It’s just that in the management of the macro economy, the CBN has been so successful and we’ve done all of these in the middle of all those financial turmoil.
“There’s been no spike on inter-bank rates. There’s been no spike on exchange rates. There’s been no capital flight and inflation has not gone up. Those are the facts the president mentioned in his Independence Day speech: Those achievements of his administration nobody talks about. Inflation is likely to go to nine per cent by the end of the year. Look at our exchange reserves, the foreign reserves- we stemmed the outflow: we were losing foreign reserves at the rate of $2 billion per month. In the last two months we have lost nothing,” he said.
Business
Fish Production Deficit, A Major Investment Opportunity – Minister
The Minister of Marine and Blue Economy, Dr Adegboyega Oyetola, has called on investors and financial institutions to tap into Nigeria’s vast catfish industry, describing the country’s fish production deficit as a major investment opportunity capable of driving economic growth, food security and job creation.
Oyetola made the remark during a high-level roundtable on scaling sustainable catfish value chain transformation, organised under the Fisheries and Aquaculture for Africa, the Caribbean and the Pacific programme, in Abuja, Wednesday.
In a statement, Oyetola said Nigeria’s annual fish requirement stood at approximately 3.6 million metric tonnes, while domestic production from all sources is about 1.4 million metric tonnes, leaving a significant supply gap that local aquaculture operators and prospective investors could exploit.
He said “Expanding domestic fish production is an economic and food security imperative. It offers an opportunity to strengthen domestic food supply, reduce dependence on fish imports, stimulate enterprise development and create sustainable livelihoods across the country.
He noted that Nigeria is Africa’s second-largest aquaculture producer and a leading producer of farmed African catfish, stressing that the sector’s potential extends beyond fish farming to hatcheries, feed mills, equipment manufacturing, transportation, processing, cold-chain services and trading.
“Investment in aquaculture has a multiplier effect, creating opportunities and value across several interconnected sectors of the economy. Closing the production gap would require more than establishing additional fish farms”, Oyetola stated, insisting on coordinated investments across the entire value chain.
He identified access to quality fingerlings, affordable feed, appropriate financing, effective fish health management, reliable markets and modern infrastructure as essential to sustainable industry expansion.
Highlighting the contributions of FISH4ACP, the minister commended the Food and Agriculture Organisation, the European Union and the German Government for supporting Nigeria’s catfish value chain.
He said the programme had identified critical industry constraints and demonstrated practical interventions in alternative feed ingredients, including black soldier fly larvae, hatchery management, broodstock improvement, business development and digital farm management.
On access to finance, Oyetola urged lenders to develop credit arrangements that reflect the realities of fish farming.
While stating that “the timing of disbursement, repayment schedules and cost of credit must reflect the production cycle and cash-flow patterns of fish farming enterprises,”the minister added that viable businesses should not be constrained by unsuitable financing arrangements.
He identified high feed and energy costs, inconsistent supplies of quality fingerlings, inadequate fish health management, weak biosecurity and insufficient processing and cold-storage facilities as major challenges confronting the industry, describing these constraints as investment opportunities, particularly in feed manufacturing, modern hatcheries, processing facilities and cold-chain infrastructure.
Business
NCDMB, NLNG Unveil $9m For Professorial Endowment Research Chairs In Six Varsities
The Nigerian Content Development and Monitoring Board (NCDMB), and the Nigeria Liquified Natural Gas Limited (NLNG) have launched a US$9 million professorial chair endowment programme across six Nigerian universities to develop commercially viable solutions to industry challenges, strengthen local research capacity and advance technological innovation.
To this end, the Board in a statement said under the Nigerian Content Research and Development (NC-R&D) Professorial Chair Endowment Programme, each university is to receive US$1.5 million to establish a specialised professorial chair focused on agreed industry research priorities.
The Tide gathered that the initiative was being implemented in partnership with the NCDMB, under the supervision of its Planning, Research and Statistics Directorate.
The beneficiary institutions include the University of Ibadan, Oyo State, Rivers State University, Port Harcourt, Modibbo Adama University, Yola, Adamawa State, Aliko Dangote University of Science and Technology, Kano State, University of Nigeria, Nsukka, Enugu State, and Yakubu Gowon University(formerly University of Abuja).
Speaking at the kick-off ceremony, NLNG’s Managing Director and Chief Executive Officer, Adeleye Falade, described the programme as an investment in Nigeria’s capacity to translate academic knowledge into practical solutions.
In his keynote address, titled ‘Reshaping Nigeria’s Future Through Innovation, Research and Capacity Development,’ Falade emphasised the importance of sustained collaboration between government, industry and academia.
“In the energy industry, we understand that technology and energy systems are evolving and the requirement for sustained research cannot be overemphasised,” he said.
The NLNG’S boss noted that the programme would support research into challenges central to the energy industry’s future, including improving operational efficiency, managing emissions, strengthening safety, maintaining critical infrastructure and making industrial processes more sustainable.
Beyond the research endowments, he outlined opportunities for a “triple helix” approach that brings government, industry and academia together through specialised programmes, sabbaticals, exchange opportunities, practical testing of research assumptions and the joint development of postgraduate curricula.
A Statement from the Corporate Communications Division of the NCDMB further stated that the six beneficiary universities will undertake research in distinct areas while the NLNG Research and Innovation Centre for Computer and Electrical Engineering (RICCEE) at the Rivers State University was envisaged as the coordinating point for these collaborations among the universities.
Falade added that discussions were already under way with the Rivers State University on implementation arrangements and commended its Vice-Chancellor, Professor Isaac Zeb-Obipi, for his role in advancing the proposed collaboration.
“We’ve already gotten indications of other partners like Google, Cisco and MTN who are showing interest to support this initiative, he noted.
He also highlighted the opportunities for younger researchers to deepen their expertise, investigate industry problems and learn from experienced academics and practitioners, urging the beneficiary institutions to build on the endowments by strengthening research partnerships and attract additional funding and pursue the commercialisation of intellectual property.
“Expand the scope, reach for more grants and funding which can push the frontiers of knowledge and commercialisation of intellectual property,” he added.
Acknowledging NCDMB’s role in bringing the initiative to fruition, the LNG helmsman called for sustained commitment to technology transfer and the development of home-grown solutions without compromising quality assurance or safety.
He averred that the programme’s lasting value would lie on stronger institutions, research outcomes deployed in the field and the development of the next generation of Nigerian researchers and industry professionals.
In his remarks, the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe said the US$9 million for the endowment programme represents a strategic investment in the future of Nigeria’s research and innovation ecosystem.
The initiative, he said, complements the Board’s ongoing investments in research infrastructure, including the establishment of specialized Research and Development (R&D) Centres of Excellence across six universities in the country.
He added that when taken together, these interventions demonstrate the Nigerian oil and gas industry’s commitment to creating an integrated research ecosystem that connects academic expertise, modern research infrastructure, industry requirements, and commercialisation opportunities.
Represented by his Senior Technical Adviser, Engr. Austin Uzoka, the Executive Secretary said by supporting specialised professorial chairs in critical areas of the industry operations, NLNG and NCDMB were creating opportunities to bridge the longstanding gap between academic research and industrial application.
He further charged the universities to deliberately transition from research for publication to research for application, and from innovation as an academic pursuit to innovation as a driver of industrial transformation.
“The beneficiary universities must see this endowment as both an opportunity and a responsibility and they would be expected to deliver clearly defined research objectives, measurable outcomes, prudent resource utilisation, effective stakeholder engagement, and sustained collaboration with industry partners.
“These Professorial chairs will generate commercially viable solutions, strengthen local technological capabilities, support industrial competitiveness, and contribute meaningfully to the long-term sustainability of Nigeria’s oil and gas industry”, he said.
The Tide reports that further details contained in the NCDMB’S Corporate Communications Division States that the University of Ibadan will focus on natural gas processing, pollution control and environmental management, while Rivers State University will concentrate on digital engineering, intelligent energy systems, automation and asset integrity.
Modibbo Adama University will undertake research in energy transition and the environment, while Aliko Dangote University of Science and Technology will focus on sustainable energy innovation and climate-resilient food systems.
In the same vein, the University of Nigeria, Nsukka, will specialise in green energy production and geoenvironmental engineering, while Yakubu Gowon University(formerly the University of Abuja) will focus on geoscience and satellite intelligence for resilient gas infrastructure.
Other terms contained in the endorsement document indicates that each of the beneficiary universities will work towards agreed research targets and commercialisation pathways, providing a framework for measuring progress and translating findings into practical applications.
The institutions, according to the Board will also jointly host an information management hub to support knowledge sharing and exchange programmes.
Ariwera Ibibo-Howells, Bayelsa
Business
‘NUJ, NPA’s Partnership Would Boost Port Producrivity, Economic Growth’
The Chairman of Rivers State Council of the Nigeria Union of Journalists (NUJ), Comrade Paul Bazia, has said the proposed partnership between the union and the Nigerian Ports Authority (NPA), Rivers Port, would promote effective information dissemination, boost productivity and enhance economic growth.
Bazia gave the assurance during a courtesy visit by the leadership of the NUJ Rivers State Council to the management of NPA, Rivers Port, in Port Harcourt, within the week.
Comrade Bazia said the proposed collaboration was informed by the strategic importance of port operations to national economic development, particularly Rivers Port, which he described as the cradle of maritime operations in the Eastern Maritime Corridor.
He explained that current leadership of the union had, upon assumption of office, resolved to promote constructive and development-oriented journalism capable of improving the public perception of Rivers State and attracting investors.
Bazia said the visit was also intended to familiarise the union with the achievements and operational challenges of the port management, while identifying areas of collaboration that would enhance its efficiency and contribute to national economic growth.
According to him, Rivers Port occupies a significant position in the maritime industry and deserves adequate media attention to showcase its contributions to commerce, trade and the nation’s economy.
The NUJ chairman said the union was committed to changing the narrative through positive and balanced reportage, noting that effective media engagement would help project the activities of the port and attract the needed investment.
He further disclosed that the NUJ had correspondents covering different sectors of the economy, including the maritime industry, and was prepared to deploy specialised maritime reporters to the authority whenever the need arose.
Bazia urged the port management to sustain its relationship with the union by informing it of important developments, activities and programmes requiring media coverage, assuring that the NUJ would provide the necessary publicity.
In her response , the Port Manager of NPA, Rivers Port, Mrs Edith Okezie, described the NUJ as a critical partner in information dissemination and the promotion of national economic development.
Okezie highlighted some of the achievements recorded under her administration in the last three years, including the rehabilitation of internal roads within the port complex and measures taken to strengthen security around the facility.
She also disclosed that port’s water channels had been dredged to facilitate the smooth movement of vessels, while rehabilitation work was ongoing on some of the berths to improve operational efficiency and service delivery.
The port manager further noted that the Federal Government was currently undertaking rehabilitation of ports in the Western region, expressing optimism that the exercise would be extended to ports in the Eastern region. She thanked the NUJ delegation for the visit and welcomed the union’s readiness to collaborate with the authority.
King Onunwor
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