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Nigeria’s Inflation Rises to 14.89% in November

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Nigeria’s inflation rate hit 11.85% in November 2019

Following Nigeria’s slip into recession in November, the National Bureau of Statistics (NBS) says inflation increased by 0.66 per cent to 14.89 per cent in November from 14.23 per cent recorded in October.

It said this in the “Consumer Price Index (CPI) November 2020” report released on Tuesday in Abuja.

The Gross Domestic Product (GDP) contracted by 3.62 per cent year-on-year in real terms in the third quarter of 2020 plunging the nation into recession.

According to the CPI report for November, increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline Index.

“On month-on-month basis, the headline index increased by 1.60 per cent in November. This is 0.06 percentage points higher than the rate recorded in October (1.54 per cent).

“The percentage change in the average composite CPI for the 12 months period ending November over the average of the CPI for the previous 12 months period was 12.92 per cent, representing a 0.26 percentage point increase over 12.66 per cent recorded in October.”

The NBS also said that urban inflation rate increased by 15.47 per cent (year-on-year) from 14.81 per cent recorded in October, while the rural inflation rate increased by 14.33 per cent in November from 13.68 per cent in October.

It added that on a month-on-month basis, the urban index rose by 1.65 per cent in November, up by 0.05, from 1.60 per cent recorded in October, while the rural index also rose by 1.56 per cent in November, up by 0.08 from 1.48 per cent recorded in October.

According to the report, the corresponding twelve-month year-on-year average percentage change for the urban index was 13.65 per cent in November.

This, it said, was higher than 13.29 per cent reported in October, while the corresponding rural inflation rate in November was 12.35 per cent compared to 12.09 per cent recorded in the previous month.

The NBS also said that composite food index rose sharply by 18.30 per cent in November compared to 17.38 per cent in October.

“This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fish, fruits, vegetables and oils and fats.

“On month-on-month basis, the food sub-index increased by 2.04 per cent in November, up by 0.08 per cent points from 1.96 per cent recorded in October.”

Meanwhile, the ”all items less farm produce” which excludes the prices of volatile agricultural produce stood at 11.05 per cent in November, down by 0.09 per cent when compared with 11.14 per cent recorded in October.

The report said that on month-on-month basis, the core sub-index increased by 0.71 per cent in November representing a sharp 0.54 percentage point decrease when compared with 1.25 per cent recorded in October.

It added that the highest increases were recorded in prices of passenger transport by air, medical services, hospital services, repair of furniture, passenger transport by road, maintenance and repair of personal transport equipment.

Others are vehicle spare parts, hairdressing salons and personal grooming establishments, pharmaceutical products, paramedical services and motor cars.

The NBS report stated that in the month under review, all items inflation on year on year basis was highest in Bauchi at 19.67 per cent, followed by Kogi at 19.81 per cent and Zamfara 17.30 per cent.

Meanwhile, Abia with 13.26 per cent, Delta at 13.20 per cent and Kwara 12.24 per cent recorded the slowest rise in headline Year on Year inflation.

On month on month basis however, all items inflation was highest in Kogi 3.08 per cent, Bauchi 2.33 per cent and Oyo 2.25 per cent, while Rivers with 0.88 per cent, Akwa Ibom 0.77 per cent and Nasarawa 0.44 per cent recorded the slowest rise in headline month on month inflation.

For food inflation, on a year on year basis, Kogi recorded the highest figure at 24 per cent, while Sokoto and Zamfara stood at 20.60 percent and Ebonyi 20.2 per cent.

However, Abia with 16.2 per cent, Bauchi 15.6 per cent, Gombe and Nasarawa with 15 per cent recorded the slowest rise.

“On month on month basis however, food inflation was highest in Kogi at 3.37 per cent, Osun 3.08 per cent and Cross River 2.93 per cent.

“Meanwhile Akwa Ibom stood at 0.60 per cent, Edo at 0.43 per cent with Nasarawa recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).”

CPI measures the average change over time in prices of goods and services consumed by people for day-to-day living.

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Ten African Presidents Receive AfCFTA Awards

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Nigeria’s President Muhammadu Buhari and nine other African Presidents have received awards for their contributions to the kick-off of the African Continental Free Trade Agreement (AfCFTA).

Dr Akinwumi Adesina, the President of African Development Bank (AfDB), and some heads of institutions also received awards for their roles in the enforcement of the AfCFTA.

The award ceremony was organised virtually by the African Union (AU) with the private sector in the AU headquarters at Addis Ababa, Ethiopia.

The presidents given the awards were Muhammadu Buhari of Nigeria; Akufo-Addo of Ghana; Felix Tshekedi of Congo; Ahmed Fattah Al-Sisi of Egypt; Mahamadou Issoufou of Niger; Alpha Conde of Guinea; Cyril Ramaphosa of South Africa and Chairperson of the AU; and Paul Kagame of Rwanda.

Others are King Mswati III, Ngwenyama of Eswatini; Prime Minister Abiy Ahmed of Ethiopia; two former heads of states – Hailemariam Desalegn, former Prime Minister of Ethiopia and Mr Olusegun Obasanjo, former President of Nigeria.

The President, Africa Business Council (AfBC), Amany Asfour, was also presented with an award for her role in that respect.

Some heads of African institutions and other prominent individuals were also awarded for their exceptional contributions to the AfCFTA process.

The awards were received by the various countries’ ambassadors and representatives of institutions present while those absent will receive through courier services to the recipients.

One of the award recipients, Amany Asfour said the ceremony showed the commitment of the private sector towards the implementation of the AU Agenda 2063.

“We need an architecture where the organised private sector would cater for the implementation of the AfCFTA and it is such a pleasure now it has been constituted by the efforts of the AU Commission,” she said.

Asfour urged the players in the private sector to ensure the implementation of policies regarding the agreement.

“We need the legislation that will make it happen with the AfCFTA, the policies can be on paper but the implementation is our role as the private sector.

“It is a must to empower our Small and Medium Enterprises, youths and women. We are the richest continent in the world but we need to manage our own resources,” she said.

In her remarks, Saratu Aliyu, President, Federation of West Africa Chambers of Commerce, Industries, Mines and Agriculture (FEWACCI) apd governments, private sector players and contributors to the success of the AfCFTA implementation.

Aliyu expressed optimism that the agreement would promote e-commerce and e-business infrastructure and develop a roadmap for the development of a digital economy to support the growth in member states.

She also reiterated the support of FEWACCI to achieving economic development and growth in Africa.

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Nigerian Billionaire to Invest N3bn in Fidelity Bank

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U.S.-based Nigerian billionaire, Dr Oluleye Adigun has disclosed ongoing efforts to invest N3Bn ($6.8million) in Fidelity Bank through shares acquisition.

Dr Adigun, in a recent interview, said the acquisition is part of his planned investment in the Nigerian economy, adding that the process of buying Fidelity bank was almost done, attributing the little delay to the COVID-19 pandemic.

“The Fidelity bank purchase is almost done. COVID-19 delayed the process a little due to everything closing down, but the process just picked up again. I was told I have to open a bank account and will need BVN. I am planning to come to Nigeria to do that as soon as possible.

The Osun State-born billionaire is the owner and Chief Operating Officer of Golden Glades Treatment Centre as well as Adigun Investment Group with stakes in nine companies operating in commercial real estate, several e-commerce companies. as well as wind and solar energy.

Others are aviation, with four private planes, a technology company, which owns computer software/applications, and six clinics in the healthcare industry.

Peter Aletor, Managing Director for Apel Asset Limited, and a friend, Mr Tosin Afolabi, have been very helpful on it. Afolabi will be partner in my bank venture in Nigeria with small share,” he said of his foray into the Nigerian economy.

Adigun expressed willingness to bring his airline company, healthcare, technology as well as solar and wind energy to Nigeria in the future.

“I am interested in investing in Nigeria because it’s my father land. I believe there has to be a way of doing something in my own country and be successful in it.

“I have touched almost every industry here in the U.S. and very successful in it. I have done business with people in other countries like South African, Zimbabwe, Jamaica and Europe. I want to do same in my own country,” he said.

He added: “The Nigerian economy has great potentials. Nigeria has everything to be giant in the world. We have the smartest people in Nigeria.

“With the right people, with great mind and good intentions, Nigeria can be like U.S. and other thriving countries. I need to build my own too. Nigeria is my home regardless of what I have here in U.S. .”

He narrated how his previous efforts to purchase failing Polaris Bank in Nigeria was thwarted, on the grounds that he was not known in Nigeria.

“When I decided to start investing in the Nigerian economy, I first heard of Polaris Bank. So I decided to buy a failing bank and Polaris came up through my connections with CBN.

“We are going through with the process of buying into Fidelity Bank now and that should be completely done in a few weeks. This is a billion naira project and hope it goes well. I have built myself from making less than 30,000 dollars yearly to having a net worth of over 100 million dollars within the last four years.

“We are all Nigerians and looking to better our country together. We can’t fix Nigeria if we are all divided. As Nigerians, we need to change our mindset to fix and make Nigeria better together,” he said.

He said he is also in the process of applying for a banking license with CBN to dive into fintech

Adigun is an old student of Olivet Baptist High School in Oyo, Miami Dade college, Florida Atlantic University and Walden University.

He has served in several U.S. organisations as a Police Officer, Substance Abuse Counselor and Clinical Director before he opened his first business in 2017.

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Heirs Holdings Acquires 45% of OML 17 from Shell, Total, ENI

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Heirs Holdings (HH) an affiliate of Transnational Corporation of Nigeria Plc (Transcorp) has acquired 45 per cent participating interest in Nigerian oil licence OML 17 from Shell Petroleum, Total and ENI.

A statement by Mr Chike Anikwe, Acting Group Company Secretary, Transcorp, said on Friday that the transaction is one of the largest oil and gas financings in Africa in more than a decade, with a financing component of $1.1 billion, provided by a consortium of global and regional banks and investors.

It said that the transaction was through TNOG Oil and Gas Limited (a related company of Heirs Holdings and Transcorp), which will have sole oparatorshio of the asset from Shell Petroleum Development Nigeria Plc, Total E&P Nigeria Limited and ENI.

Tony Elumelu, Chairman of Heirs Holdings, said in the statement: “We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs.

“The acquisition of such a high quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team that we have assembled.

“As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities and the strategic importance of the oil and gas sector in Nigeria.

“We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain,” he said.

Elumelu further said: “I would like to thank Shell, Total and ENI, for the professionalism of the process, the Federal Government of Nigeria, the Ministry of Petroleum Resources, and the NNPC for the confidence they have placed in us,” he noted.

Speaking on the investment, Mr Owen Omogiafo, the President and Group Chief Executive Officer, of Transcorp, said that the transaction was an evidence of the company’s strategy to power Africa.

“This deal further demonstrates Transcorp’s integrated energy strategy and our determination to power Africa.”

Heirs Holdings was advised by Standard Chartered Plc, as Global Coordinator, and United Capital Plc, with a syndicate of lending institutions including Afreximbank, ABSA, Africa Finance Corporation, Union Bank of Nigeria, Hybrid Capital, and global asset management firm Amundi.

The deal also involves Schlumberger as a technical partner, as well as the trading arm of Shell as an offtaker.

According to the statement, OML 17 has a current production capacity of 27,000 barrels of oil equivalent per day and, according to our estimates, 2P reserves of 1.2 billion barrels of oil equivalent, with an additional 1 billion barrels of oil equivalent resources of further exploration potential.

The investment demonstrates an advance in the execution of Heirs Holdings’ integrated energy strategy and the Group’s commitment to Africa’s development, through long term investments that create economic prosperity and social wealth.

Heirs Holdings’ heritage and approach to business fundamentally underscores its commitment to inclusive development and shared prosperity with its host communities. Heirs Holdings is fully invested in the development of the Niger Delta region.

The statement also reported that Heirs Holdings’ strategy of creating the leading integrated energy business in Africa is executed through a series of strategic portfolio holdings.

Transcorp is one of the largest power producers in Nigeria, with 2,000 MW of installed capacity, through ownership of Transcorp Power Plant and the recent acquisition of Afam Power Plc and Afam Three Fast Power Limited.

Transcorp closed the US$300 million Afam acquisitions in November 2020. Transcorp supplies electricity to the Republic of Benin, as part of an emphasis on promoting regional integration and delivering robust power supply to catalyse development in Africa.

Transcorp also operates OPL281, under a production sharing contract with the Nigerian National Petroleum Corporation (“NNPC”).

Similarly, Heirs Holdings’ subsidiary, Tenoil is the operator of OPL 2008, under a production sharing contract with NNPC.

Tenoil also owns the Ata Marginal Field which will commence production in Q2, 2021, with 3,500 barrels of oil per day.

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