Nigeria Business News Thursday, 24 November 2022


Here are your top 5 business news items in Nigeria for Thursday, 24 November 2022. Get the details bellow.

(Naira Redesign | Excess Crude Account | Oil Production | Withdrawal Monitoring | Fuel Scarcity)

Nigeria Business News Thursday, 24 November 2022

Naira Redesign

N165bn back in banks as Buhari unveils redesigned Naira

One hundred and sixty five billion old naira notes have so far been absorbed by commercial banks since the announcement of the planned launch of new naira notes on October 26. Director Currency, Central Bank of Nigeria (CBN), Ahmed Bello Umar, made the disclosure in Abuja at a post-Monetary Policy Committee media briefing.

According to him, the amount deposited thus far was small compared to what the apex bank has anticipated.

He also revealed that the apex bank will from Thursday, begin reticulating the new naira notes to all its branches across the country since the currency has been officially launched by President Muhammadu Buhari at the presidential villa on Wednesday.

He added that the new notes will be available for spending from December 15, even as he reiterated the federal government’s position that the no extension will be given to the old naira notes beyond January 31.

He said: No extension will be given. From Thursday, we will start distribution to our networks and not to customers yet ( - The Sun).

Read more here. 


Excess Crude Account

Excess Crude Account falls by 89% to $472,513

Nigeria’s excess crude account has declined by 89 per cent in the last eight years, moving from $4.1bn in November 2014 to $472,513 in the same period of 2022.

According to a statement by the Ministry of Finance, Budget and National Planning, which was seen by The PUNCH on Wednesday, the ECA’s balance as at November 23, 2022, stood at $472,513.64.

The ECA is the Federal Government’s fiscal account that was created to save revenues—in excess of the budgetary benchmark price—that were generated from oil sales, according to Investopedia, an investment and business dictionary.

The account, however, has depleted in the last eight years owing to lack of inflows, oil market vagaries and the country’s revenue crunch, according to economists.

“It is a simple fact that when you spend money from an account and you are not adding to it, it will deplete,” said Professor of Economics at Covenant University, Ogun State, Jonathan Aremu (– Punch).

Read more here. 


Oil Production

Shell to boost Nigeria oil production by 225,000bpd

Shell Nigeria Exploration and Production Company Limited’s 225,000 barrels per day Bonga Floating Production Storage and Offloading vessel is set to begin production to boost Nigeria’s crude oil output.

SNEPCo in a statement said it had completed maintenance on the FPSO, which was shut down a month ago.

It announced this through its Media Relations Manager, Abimbola Essien-Nelson, adding that the completion of the turn around maintenance on Bonga would increase oil and gas production in the coming days.

Essien-Nelson also disclosed that although the TAM was scheduled to be completed in 30 days, the process was completed in 22 days.

The oil firm said, “Shell Nigeria Exploration and Production Company Limited is pleased to announce that the 2022 turn around maintenance of the Bonga floating production storage and offloading vessel has been completed. “The 225,000 bpd capacity FPSO was shut down on October 18 (– Punch).  

Read more here. 


Withdrawal Monitoring

CBN, EFCC to track large withdrawals

The Governor of the Central Bank of Nigeria, Godwin Emefiele has said that it would work with law enforcement agencies like the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission, to complicate and track large withdrawals.

He said this while briefing the press after the launch the new Naira banknotes in Abuja on Wednesday. At the briefing, Emefiele said that the amount of money that can be withdrawn from the counter would be reduced drastically, adding that bulk withdrawals would require several procedures and security checks to track use.

He said this would ensure a steady transition into a cashless economy. “There is no economy imbued with the thinking that it has to be a cash economy; the world has moved from predominantly cash to a cashless economy.


And I think Nigeria and the Central Bank of Nigeria are prepared to move towards a cashless economy (– Punch).

Read more here. 


Fuel Scarcity

NNPC meets marketers as petrol scarcity bites harder

The scarcity of the premium motor spirit, popularly called petrol, has continued to spread across many states, resurfacing in Abuja on Wednesday after disappearing briefly. It grew worse in Lagos, Ogun, Ekiti, among others.

Oil marketers blamed this on the 163 per cent hike in the cost of renting daughter vessels to move products from mother vessels, stressing that this had reduced the purchasing power of many dealers.

They also attributed the scarcity to a drop in PMS supply by the Nigerian National Petroleum Company Limited, the inability to access foreign exchange at the official rate, and the continued subsidy on PMS, among others.

The PUNCH reported on Wednesday that long queues surfaced in Lagos on Tuesday as motorists spent hours at filling stations in their bid to purchase PMS.

Commenting on this, the National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, said the situation was due to various factors (– Punch).

Read more here. 

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