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Lawmakers Want CBN To Halt Naira Devaluation 

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The House of Representatives has asked the Central Bank of Nigeria (CBN), to urgently put in place a policy to check further devaluation of the naira to the United States dollar and other international legal tenders.
The House decried that while the Nigerian currency was losing value, others in Africa were appreciating.
At the plenary on Wednesday, the House unanimously adopted a motion moved by the Deputy Chairman of the Committee on Pensions, Mr Bamidele Salam, which warned the CBN of the implications of further devaluing the naira.
The motion was titled, ‘Matter of urgent public importance on the need for the Central Bank of Nigeria to urgently put in place monetary policies to stop the free fall of the naira against the dollar and other international legal tenders’.
Salam recalled that the CBN governor, Godwin Emefiele, while addressing the Bankers’ Committee at a summit on the economy in Lagos earlier in February, informed the committee about the naira devaluation against the dollar.
The lawmaker also quoted Emefiele as saying at the summit that the official exchange rate stood at N410 to the dollar.
“That is 7.6 per cent weaker than the rate of N379 published on the central bank’s website,” Salam noted.
According to the lawmaker, while the value of the naira relative to the dollar had declined by nine per cent in the last six months, the South African rand and Ghanaian cedi had appreciated by 11.4 per cent and one per cent, respectively.
Salam also recalled that the CBN adopted multiple exchange rates in 2020, in a bid to avoid an outright devaluation. 
He noted that the official rate used as a basis for budget preparation and other official transactions differed from a closely controlled exchange rate for investors and exporters known as the Nigerian Autonomous Foreign Exchange Rate Fixing Methodology.
He stressed that the naira had traded in a tight range between N400 and N410, while the NAFEX rate was different from the parallel market, considered illegal by the CBN, where the naira closed at 502.
Salam said, “The House is concerned that devaluation is likely to cause inflation because imports will be more expensive any imported goods or raw material will increase in price; aggregate demand increases, causing demand-pull inflation. Firms/exporters have less incentive to cut costs because they can rely on the devaluation to improve competitiveness.
 ”The concern is that the long-term devaluation may lead to lower productivity because of the decline in incentives.
 ”The House is further concerned that devaluation of the naira makes it more difficult for Nigerian youths especially in the IT sector, whose businesses are online and must necessarily transact businesses in the US dollars. 
“It also reduces real wages. In a period of low wage growth, a devaluation that causes rising import prices will make consumers feel worse off “.

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Local Firms Produce 30% Oil, Gas – NUPRC

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Chief Executive Officer (CEO), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe, says indigenous firms account for the production of about 30 per cent and 20 per cent of crude oil and gas respectively.
Speaking at the Independent Petroleum Producers Group (IPPG) dinner at the 21st Nigerian Oil and Gas Conference and Exhibition in Abuja, Komolafe said “as at today, I am proud to say that indigenous companies contribute about 30 per cent of crude oil and 20 per cent of the gas production, as well as 40 per cent and 32 per cent of oil and gas reserves.”
He diclosed that seven indigenous companies are among the top 20 companies with the highest oil reserves in Nigeria.
Komolafe noted that the commission is not oblivious of the threat posed to the development of the  hydrocarbon industry by divestments of the International Oil Companies (IOCs).
The impetus for divestment by the IOCs, according to him, is mainly attributable to the hostile upstream petroleum environment arising from crude oil theft and energy transition as a global response to the advocacy for reduction in carbon emissions.
As far as NUPRC is concerned, he stated, IPPG and other prospective indigenous players should see the IOCs divestment in some of the upstream assets as an opportunity rather than a threat to the development of the Nigerian upstream petroleum sector.
“It is indeed the right time to look inwards in the sector to prove the capability of the local content in value addition and optimising development of the nation’s hydrocarbon resources”, he emphasised.
The theme of the event was ‘International Oil Industry Divestments- Nigeria’s Energy Security, and The Role of the IPPG in this New Mix’.

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Stakeholder Urges Govt To Hands Off Business 

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A player in the oil and gas sector of Nigeria’s economy, Dr Godswill Ihetu, has said that government should keep its hands off business, saying its interference is detrimental to the growth and sustainability of business.
Ihetu, an octogenarian who had been in the oil and gas sector since 1959, said this while speaking to newsmen at the 5th Nigeria Entrepreneurial Summit and Honours Foundation (NESH) Oil and Gas Roundtable Series in Port Harcourt.
Giving reasons for the huge unemployment indices in the country, in spite of having huge oil and gas reserves, Ihetu stated that the oil and gas sector does not actually employ a lot of people due to the way it is structured, noting that there were inputs from the industry, capable of creating employment if well managed.
According to him, “the industry itself does not employ many people, but there are inputs that are capable of creating employment in the economy, like the Ajaokuta steel plant, petrochemicals”.
He continued that the oil and gas businesses, in which the government had majority share and played managerial role, did not strive due to incessant hire and fire of top officers, adding that such constant removal of captains of such establishments would not allow for continuity of laudable projects.
“30 to 40 years ago, there was a pipeline sending gas to Ajaokuta plant. Can you imagine if that plant had succeeded, the number of people that would be employed? But that huge complex is lying waste and there are many such complexes scattered across the country that are not producing much”, he explained.
He observed that the private sector-driven companies such as Eleme Petrochemical, were doing well, “ but you come to government-owned establishment, you find that the ability to sustain those plants like the refinery is lacking, why?
“Government’s interference, government’s lack of support in making sure that these establishments were created. If the Port Harcourt refinery  was working it would create more jobs for the youths.
“So the oil industry itself is not one that creates a lot of jobs but the pinups from the industry, gas into petrochemicals, gas into power, gas into manufacturing create a lot of jobs.
“Unfortunately, some of those establishments that are government-run have not done very well”, he said.
He urged government to sell majority stake to private sector and let NNPC be a minority shareholder.

By: Tonye Nria-Dappa

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NSC Nets N115.2bn, Records 28 Seizures In Six Months 

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The Onne Customs Area Command of the Nigeria Customs Service (NCS) collected a total revenue of N115,264,159,921.12 between January and June this year.
This amounts to an increase of N78 billion over the N37,097,63.91  in the corresponding period of 2021. The net was N68,597,503,002 in 2020.
Onne Customs Area Controller, Comptroller Auwal Mohammed, disclosed this in a statement made available to our correspondent by the Public Relations Officer of the command, SC. Ifeoma Onuigbo Ojekwu.
According to the statement, the command recorded 28 seizures, comprising nine containers with a duty paid value (DPV) of N531,386,166.78 in the period under review.
“This year’s number of seizures is higher by 20 numbers between January and June 2021.
“Among the siezed goods are machetes brought into the country without end users certificate, military wears, vegetable oil, whisky, soap and used clothing.
Others include used tyres, foreign parboiled rice, tomato paste, used vehicle parts and  others classified as uncustoms goods.
“There is a corresponding decline in smuggling activities accasioned by the aggressive anti-smuggling operation of the ommand.
“This is in order to ensure total compliance with the  policy thrust of the Comptroller General of Customs, Col. Hammed Ali (rtd)  and the extant law of the service”, Mohammed said.
On export, Mohammed said,”our export drive has also yield Fruitful dividends. A total number of  876,775.60 metric tonnes with $495,384,221.99 Free on Board (FOB) value translated into N203,969,499,562 and Nigeria Export Supervision Scheme (NESS) valued N1,075,060,914.52 were also processed during the period under review.
“It is petinent, therefore, to sound this note of warning that our eagle- eyed officers are very much on red alert to checkmate the activities of those who thrive on evasion of customs duties on their consignments”, he stated.

By: Nkpemenyie Mcdominic, Lagos

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