Finance
Nigeria-China trade volume exceeds $13 billion in 2015 — Envoy
Gbenga KOSOKO with Agency Reports
LAGOS-THE Chinese Ambassador to Nigeria, Gu Xiaojie, said this at a reception to mark 45 years of diplomatic relations between both countries in Abuja on Thursday night.
Mr. Xiaojie explained that both countries had strengthened bilateral relations since 1971.
“China and Nigeria have enjoyed longstanding friendly exchanges 45 years ago on February 10, 1971 since the two countries established diplomatic relations.
“In 1971, the bilateral trade volume was only $10 million, nowadays the bilateral trade volume is hundred times that of 1971.
“Nigeria is China’s largest engineering contracted projects market in Africa; Nigeria is the second largest export market of China in Africa and Nigeria is also the third biggest trading partner and major investment destination in Africa.
“By the end of 2015, China’s cumulated, non-financial direct investment is more than $13 billion.
“Cooperative projects such as the launch of satellite, construction of railroad and the fast development of Lekki and Ogun free trade zones are the true story of China- Nigeria pragmatic cooperation,” he said.
The envoy expressed confidence in the continued relations between both countries, adding that political and mutual trust, and coordination in international affairs formed part of what had sustained the friendship.
“As good brothers, both countries pursue the independent foreign policy of peace, respect each other’s choice of development path and promote south-south cooperation to safeguard common interests of developing countries.
“We also show mutual understanding and support to each other on issues involving core interests and major concerns of each side.
“A good partners, the two countries always adhere to win-win cooperation and common development, thus bringing its benefits to our peoples; thus making stronger the social and civil foundation for bilateral relations.”
He reiterated the commitment of the Chinese Government to promote bilateral relations from a “strategic and long-term perspective”.
The ambassador also recalled that the Forum on China-Africa Cooperation (FOCAC) held in Johannesburg in December 2015 improved partnership between the both sides.
He assured of China’s commitment to the provision of 60 billion dollars over the next three years to support the 10 key cooperation areas identified, which include industrialisation and agricultural modernisation.
Others are infrastructure, finance, green development, trade and investment facilitation, poverty reduction and people’s welfare, public health, people-to-people exchanges and pace and security.
He urged that both countries to take advantage of the FOCAC platform to deepen cooperation and jointly safeguard the common interests of both parties and developing countries.
In his address, Bulus Lolo, Permanent Secretary, Nigeria’s Ministry of Foreign Affairs, expressed satisfaction with the bilateral relations China shared with Nigeria and Africa.
Mr. Lolo commended the growth of the Chinese economy and described relations with China as significant, adding that that China was a major part of the Federal Government’s development plan.
He recalled the meetings between both presidents, adding that President Muhammadu Buhari had accepted an invitation to visit China on a later date to be announced.
“An occasion like this speaks to the quality of relationship between Nigeria and China.
“Equally significant, if Africa has ever needed a friend, Africa has found that friend in China because you have come to Africa, you have shown your hand of friendship, you have stood with the people of Africa in the areas that really matter.
“Our infrastructure will not be the same without the establishment and involvement of different ventures by China.
“As we look in to what the government is trying to do, we cannot look elsewhere but to look towards China to be part of our development in this country.
“The railways that you are helping us to develop, other projects that you are involved in will impact on the lives of the ordinary Nigerians.
“Indeed, government is determined that the mantra of change that they have preached will not be a campaign slogan but a reality on ground and China will be partner of this journey.”
He assured of continuous relations with China, adding that it was a country standing in “partnership, friendship, solidarity and cooperation” with Nigeria.
The event also marked the celebration of the Chinese New Year, also known as the Spring Festival, marked by the lunisolar Chinese calendar of which the date changes from year to year.
The date for the 2016 Spring Festival would be Feb. 8.
The festivities usually start the day before the New Year and continue until the Lantern Festival, the 15th day of the New Year.
Each Chinese New Year is characterised by one of 12 animals which appear in the Chinese zodiac and according to the zodiac, this is the Year of the Monkey, the ninth animal in the cycle.
The Chinese zodiac is divided into 12 blocks (or houses) and each house has a time-length of one year.
Business
Nigeria pays US$4.9 billion on petrol subsidy in 2024- NNPCL
It was however noted by Biztellers.com.ng, that although subsidy is back in effect, the main reason for that is the increasingly weak state of the Naira and the country’s extreme dependence on products importation. Also unlike the previous subsidy era, where several oil marketers were getting free subsidy refunds for unverified product importation, this subsidy era is witnessing only one importer, the NNPCL, which in effect is the sole receiver of government subsidies.
Yemie ADEOYE
INSPITE of the official position of the Nigerian government that the controversial petrol subsidy is gone for good as announced by the President on assumption of office, the state owned Nigerian National Petroleum Corporation Limited, NNPCL has disclosed that petrol subsidy is still fully operational in Nigeria, although, under a different identity.
Umar Ajiya, Chief Financial Officer at the NNPCL, disclosed that it cost the company a staggering N7.8 trillion (US$4.9) to cover this price gap in the first seven months of 2024.
Rather than simply referring to these claims as subsidies, he stated that the company is merely managing the price difference in petrol imports on behalf of the federation, stressing that this should not be misconstrued as a return to subsidy payments.
This revelation has reignited discussions on whether the NNPC is indirectly offering subsidies, a concept typically defined as selling a product below its cost price.
Documents reviewed by Biztellers.com.ng showed that the term “subsidy” was used extensively in official correspondence between the NNPCL and the presidency, particularly in reference to the “shortfall.”
Recall that President Bola Tinubu reportedly approved NNPC’s request to utilize the 2023 final dividends due to the federation to offset these costs.
However, during a media briefing on Monday about the company’s 2023 audited financial statements, Ajiya refuted claims that the NNPC is involved in any subsidy scheme.
Ajiya further disclosed that the Nigerian government owes the NNPC N7.8 trillion ($4.9 billion) in subsidy-related debts for the period from January to July 2024.
In furtherance of his clarification to the News Agency of Nigeria (NAN), Ajiya insisted that no subsidy payments have been made to any marketer in the last nine years, citing the NNPC’s role as the sole importer of petrol under supply contracts.
He said, “In the last eight to nine years, NNPC Ltd. has not paid anyone a dime as a subsidy; no kobo has been disbursed by NNPC Ltd. in the name of subsidy. No marketer has received any payment from us for subsidy.”
“What has been happening is that we have been importing PMS, which has been landing at a specific cost price, and the government tells us to sell it at half price. So the difference between the landing price and that half price is a shortfall.
“And the deal is between the Federation and NNPC Ltd., to reconcile, sometimes they give us money, so there is no money exchanging hands with any marketer in the name of subsidy.”
Ajiya remained silent on how much of the $4.9 billion could have been remitted to the federation account if the NNPC had not been covering the “shortfall.”
It was however noted by Biztellers.com.ng, that although subsidy is back in effect, the main reason for that is the increasingly weak state of the Naira and the country’s extreme dependence on products importation. Also unlike the previous subsidy era, where several oil marketers were getting free subsidy refunds for unverified product importation, this subsidy era is witnessing only one importer, the NNPCL, which in effect is the sole receiver of government subsidies.
Banking
CBN Denies Currency Devaluation
The Central Bank of Nigeria (CBN) has refuted claims of devaluing the.
Earlier reports suggested that the CBN had devalued the Naira, lowering its exchange rate from N631 to the dollar, compared to the previous day’s rate of N461.60 at the Importers and Exporters (I&E) window.
However, the Central Bank of Nigeria (CBN) released a statement on Thursday through its Acting Head of Corporate Communications, Dr. Isa Abdulmumin, categorizing the report as false information.
In the statement titled ‘CBN Has Not Devalued The Naira’, he said the attention of the apex bank was drawn to the news report by an Abuja based newspaper edition of June 1, 2023, titled “CB Devalues Naira To 630/51”.
However, the CBN stated categorically that the news report was replete with outright FALSEHOODS and destabilizing innuendos, ‘reflecting potentially willful ignorance of the said medium as to the workings of the Nigerian Foreign Exchange Market.’
“For the avoidance of doubt, the exchange rate at the Investors’ & Exporters (I&E) window traded this morning (June 1, 2023) at N465/USS1 and has been stable around this rate for a while.
“The public is hereby advised to ignore the news report by Daily Trust in its entirety, as it is speculative and calculated at causing panic in the market,” the CBN spokesman added.
He, therefore, advised media practitioners to verify their facts from the Central Bank of Nigeria before publishing in order not to misinform the public.
Banking
BREAKING: CBN Increases Interest Rate By 0.5%
The interest rate in Nigeria has been raised to 18.5 percent, up by 0.5 percent, from 18 percent where it was pegged in March 2023.
The Central Banks of Nigeria’s (CBN) Monetary Policy Committee (MPC) resolved to this effect at its third meeting of 2023 in Abuja, on Wednesday.
Governor, CBN, Godwin Emefiele, made the disclosure in the communiqué of the MPC’s meeting, thereafter.
While engaging the media at the end of the two-day meeting, Emefiele, said the committee voted to keep the asymmetric corridor at +100 and -700 basis points around the MPR.
In the view of the MPC, rising inflation rate is traceable to the high energy cost and challenges around the supply chain, among others, which lie outside the corridors of the CBN.
Emefiele said, “The current trend in price development would continue to be monitored by the bank with greater collaboration with fiscal authority to address the drivers of inflation.”
Biztellers reports that the CBN had effected six consecutive interest rate increases, which has seen the rate move from 11.5 percent in March 2022 to 18.5 percent in May 2023.