April inflation, non-oil export rebate beneficiaries… 7 business stories to track this week

Here are the seven top business news you need to track this week — May 15 to May 18.

NBS TO RELEASE APRIL INFLATION REPORT, OIL PRICE WATCH THIS WEEK

The National Bureau of Statistics (NBS) is expected to release a report on the consumer price index (CPI) for April 2023.

In March, the CPI, which measures the rate of change in prices of goods and services rose, to 22.04 percent — up from 21.91 percent in the previous month.

In the same month, the bureau also intends to release some reports including the automotive gas oil (diesel) price watch, premium motor spirit (petrol) price watch, liquefied petroleum gas (cooking gas) price watch, and the national household kerosene price watch.

NBS will also publish another report on selected food prices and transport fare watch for April 2023.

CBN TO PUBLISH BENEFICIARIES OF NON-OIL EXPORT REBATE PAYMENT 

The Central Bank of Nigeria (CBN) says it will commence the publishing of names of companies that benefited from the non-oil export rebate payment under its Race to $200 billion in FX Repatriation (RT200FX) initiative.

The decision was made after some stakeholders raised concerns bordering on transparency in the disbursement of the rebates at the recent RT200 non-oil export summit in Lagos.

Responding to the concerns raised by exporter at the event, Godwin Emefiele, governor of CBN, said public disclosure will begin this week and will cover beneficiaries from January 2023 to March 2023.

The RT200FX programme was established to stimulate non-oil exports with a $200 billion FX income target in the next three to five years.

FG APPROVES TRANSCORP POWER AS PREFERRED BIDDER FOR ABUJA DISCO 

Meanwhile, the federal government, last week, announced the approval of Transcorp Power as the preferred bidder for the Abuja Electricity Distribution Company (AEDC).

Speaking at the commissioning of the Afam three-fast power plant in Oyigbo LGA, Rivers state, Vice-President Yemi Osinbajo said the approval was given by the national council on privatisation (NCP).

Osinbajo described the development as a significant breakthrough in the country’s power sector — an industry he said has been lacking private-sector finance.

BUHARI SEEKS SENATE APPROVAL TO BORROW $800M FROM WORLD BANK

Amid oppositions against excessive borrowings, President Muhammadu Buhari, last week, asked the senate to approve a request to borrow $800 million from the World Bank.

The request came a few days after the senate approved Buhari’s request for the securitisation of the N22.7 trillion ways and means loan.

According to the letter, read by Senate President Ahmad Lawan, Buhari said the new fund ($800 million) would be used as additional financing of the National Social Safety Net programme (NASSP).

The NASSP is a social intervention programme used to facilitate the informal sector, and improve the nutrition, health, education, and human capital development of beneficiaries’ households.

Buhari said if the request is approved, N5,000 will be transferred to about 60 million poor Nigerians, which would stimulate the informal sector and improve health and education.

UK INCREASES INTEREST RATES TO 4.5% TO AVOID RECESSION

The Bank of England (BoE) raised interest rates from 4.25 percent to 4.5 percent.

This is the highest level since October 2008 and the 12th time in a row that the central bank of the United Kingdom has hiked interest rates.

The BoE said UK’s inflation was too high, at around 10 percent since the summer 2022, but that it expected inflation to fall quickly this year to meet a Q2 percent target by late 2024.

NIGERIA’S OIL PRODUCTION FALLS TO 998,602 BPD

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in its latest crude oil and condensate production data for April 2023, said oil production decreased from 1.517 million bpd in March 2023 to 1.245 million bpd in April 2023, with the addition of condensate.

Oil production figure, according to the agency, fell to 998,602 barrels per day (bpd), a 21.26 percent decline compared to March when output was 1,268,202 bpd.

The volume of production is at its lowest point in the last seven months.

OIL PRICE FALLS TO $75 A BARREL AMID DEMAND FEARS IN US, CHINA 

On Friday, oil prices fell due to economic concerns in the United States and China — two major top oil consumers in the world.

Brent crude futures dropped 0.60 percent to $75.47 a barrel by 14:30 GMT+1 on Friday, while US West Texas Intermediate (WTI) crude was down 0.47 percent to $70.54.

US President Joe Biden and lawmakers have been in talks over the US debt ceiling — a limit that congress imposes on the amount that the federal government can owe.

While Democrats have long pushed for an unconditional increase of the debt ceiling, Republicans have demanded a number of policy reforms in addition to sharp spending cuts.

Meanwhile, a decline in new loans to businesses and weaker economic data experienced last week in China, refocused doubts about the country’s recovery from COVID restrictions driving oil demand growth.