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Nigerian Households Survey Indicates Local Trades Exploiting Border Closure To Raise Prices; Zimbabwe to Support Artisanal Miners; Kenyatta And Museveni Move to Make Peace......More on the News

Sep 16, 2019 05:56 PM
Nigerian Households Survey Indicates Local Trades Exploiting Border Closure To Raise Prices; Zimbabwe to Support Artisanal Miners; Kenyatta And Museveni Move to Make Peace......More on the News Africa Business Radio, uhuru kenyatta and museveni, Africa Business News, Zimbabwe Miner, Household survey, NNPC

The African Development Bank has launched and priced a US$ 2 billion 3-year Global Benchmark bond due 16 September 2022, its first US$ benchmark of the year. Launched on September 11, the bond issue is the Bank’s second Global Benchmark of 2019, following a EUR 1 billion 10-year priced in March 2019. With this transaction, the Bank has now raised US$ 4.4 billion in 2019 to date and executed 61% of its borrowing program for the year. The transaction received strong support from investors globally, with order books reaching US$ 2.8 billion and 53 investors participating. The high quality of the order book is illustrated by the strong participation of Central Banks and Official Institutions, taking 64% of the allocations. The transaction met strong interest from the outset, with Indications of Interest in excess of US$ 1.8 billion (excluding Joint-Lead Managers interest) when order books officially opened. 

As the two–week ultimatum given to States over the bail-out fund deductions draw near, Governors are reportedly prepared to lobby the federal government (FG) over the repayment plan. According to industry sources, state governors are not prepared to meet the two-week deadline given them by the FG to refund the N614 Billion bailout fund. It was learned that the 35 state governors have raised concerns and are prepared to meet the Presidency this week, and ask that the Central Bank of Nigeria (CBN) and Office of the Accountant-General of the Federation suspend the move to begin the deduction of the bailout funds until some reconciliations have been done. Following the development, a reconciliation panel headed by Governor of Kaduna State, Nasir el-Rufai, is reportedly being set up to approach the CBN, the Nigerian National Petroleum Corporation (NNPC) and the Office of the Accountant-General of the Federation (OAGF). 

Amidst the ongoing border closure by the Federal Government of Nigeria, the latest household survey carried out has shown that while prices of food items continue to rise, traders of locally made items are exploiting the border closure to raise food prices. According to the data obtained from the various markets in Lagos State, prices of major food items such as rice, tomatoes, locally made vegetable oil and palm oil rose significantly. For instance, a bag of 50kg Royal Stallion rice, which was initially sold for an average of N17,625, is now sold for an average of N18,875, indicating a 7.1% increase within two weeks. However, the price of a basket of sweet potatoes recorded a significant decrease from an average of N9,500 to N5,000, indicating a 47% decline in price. A bag of 50kg Royal Stallion rice increased from an average of N17,625 to N18,875 in two weeks. The price of a big basket of round shaped tomatoes also increased by a whopping 27.3% from N11,000 to N14,000. A big basket of oval-shaped tomatoes recorded an 80% increase in price, as it now sells for an average of N9,000 from an initial average of N5,000. A 25-liter gallon of locally made palm oil, which sold for an average of N10,625, rose slightly to N10,700. Despite the increase in the price of some household commodities, other items also recorded a significant decrease in price within the past two weeks. A big tuber of yam decreased by 20.3% and now sells for an average of N688 from an initial average of N863. A small tuber also decreased by 17.3% within the last two weeks. The price of a bag of Ijebu Garri now sells for an average of N6,950 from an initial average of N7,050. A big basket of sweet potatoes, which was sold for an average of N9,500, now sells for an average of N5,000. A big basket of Irish potatoes also decreased by a significant 28.6%, from N28,000 to an average of N20,000. A liter gallon of locally made palm oil, which sold for an average of N10,625, rose slightly to N10,700. The pressure of the Nigerian border closure is hitting hard on the residents of Lagos State, as many items that were imported from Seme Border have recorded a significant hike in price. A carton of full chicken now sells for an average of N15,000 from initial N13,000 a fortnight ago. Other frozen food items that recorded a significant increase in price include chicken lap and turkey. Mile 12 market remains the best market to purchase onions, as it sells the cheapest. A big bag of dry onions sells for an average of N16,000, while a bag of new onions sells at N11,000. 

Zimbabwe's Government has tabled a plan to establish gold centers which will provide technical and financial assistance to Artisanal Small Scale Miners (ASM). The move is aimed at improving efficiency and total gold output. Addressing a business breakfast forum, Mines and Mining Development Minister, Winston Chitando said the initiative sought to leave no one behind in terms of mining opportunities and turning the economy around. The move is in line with Chitando's roadmap for the achievement of a US$12 billion mining industry in Zimbabwe by 2023, a 344 percent increase from US$2.7 billion in 2017. A detailed document which will outline the achievement of the US$12 billion mining industry by 2023 will soon be launched. Gold and platinum are among the minerals expected to lead the growth in mining revenue, together with minerals like diamonds, chrome, and coal.

Kenya’s President Uhuru Kenyatta and his Ugandan counterpart Yoweri Museveni have reached a mutual agreement, ending all forms of cross conflict between them. This resolution was arrived at during the Cross-Border Programme for Sustainable Peace and Development event held in Uganda. The United Nations-supported initiative, which seeks to end hostilities among neighboring communities, also enhances development in the region by promoting non-violent interactions and collaborations. Speaking at the ceremony in Moroto town, Uganda, President Kenyatta highlighted the importance of the deal in putting an end to the clash between communities. “This program … will help all of us to ensure that we have peace, our people live together and also to enable us (to) develop,” Kenyatta said. The President noted that it is through wealth creation, as envisioned in the signed peace and development agreement, that poverty can be fought successfully. The East African neighbors have now opted for a more peaceful means to solve their differences

An expert from S&P Global Platts has said that the attacks on critical oil production facilities in Saudi Arabia over the weekend will effectively wipe out the world’s spare oil capacity. Drone strikes attacked an oil processing facility at Abqaiq and the nearby Khurais oil field on Saturday, knocking out 5.7 million barrels of daily crude production — or 50% of the kingdom’s oil output. That’s more than 5% of global daily oil production. Sarah Cottle, global head of market insight at S&P Global Platts said this heightens the risk premium, it puts a lot of pressure on the supply side,” According to sources, the country’s national oil company, Saudi Aramco, has 35-40 days of supply to meet contractual obligations. The company reportedly aims to restore about a third of its output, or two million barrels, by Monday.

The Chief Executive Officer (CEO) of Walt Disney Co, Bob Iger has resigned from Apple Inc’s Board. The resignation came at a time when the two companies are competing in the online TV streaming business. Iger was said to have resigned the same day Apple announced price and release date for its streaming service. In a statement made available to the public, Iger expressed his appreciation to Apple, having worked with the company for 8 years. Although neither Disney nor Apple gave reasons for Iger’s resignation, it is arguable that he resigned because of the conflict of interest that might ensue when the two companies start competing for original contents in the future with the new online TV streaming platforms – Disney+ and Apple TV+.

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