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7908
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Nationalization of British Petroleum's oil and oil-marketing interests. Increased share in Shell-BP Petroleum from 60% to 80%.a First civilian president elected in 13 years.a |
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7900
|
The introduction of the Insider Trading Laws.a4 |
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831231
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Military Coup ended the civilian rule of President Shagari.a |
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840406
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Strict foreign exchange controls on Nigerian residents.a |
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8410
|
Agreement with international creditors to pay for interest accrued since beginning of the year.a |
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850101
|
Residents permitted to open Foreign Currency Accounts in Nigerian banks for funds not obtained from export proceeds or the payments received by authorized dealers.a |
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850101
|
Dividends due to nonresident investors could be reinvested in new companies, provided that an additional amount equal to at least one half of the remittable amount was imported.a3(first entry) |
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8508
|
Another military coup.a |
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860101
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Reinvestment of remittable dividends was allowed without the requirement of matching capital import, subject to the approval of the Federal Ministry of Finance.a3 |
|
860926
|
Two tier Official Rate system established.a |
|
8711
|
Bank debt restructuring agreement.i |
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880705
|
The guidelines on an external debt conversion program for Nigeria were published by the Central Bank of Nigeria to regulate the purchase of selected Nigerian foreign debt instruments at a discount and to provide for disposition of the naira proceeds of conversions of such debt. The guidelines established a Debt Conversion Program (DCP) and a Debt Conversion Committee (DCC).a3 |
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871130
|
The first auction for foreign debt instruments was conducted for a face amount of US$40 million.a3 |
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8711
|
Bank debt restructuring agreement.i |
|
8900
|
In early 1989 the Nigerian Enterprises Promotion Decree was revised allowing foreigners to acquire a 100% ownership in a Nigerian venture except in banking, insurance, petroleum prospecting and mining, where foreign ownership remains limited to 40% participation.a |
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890109
|
Dual exchange rate system was abolished and a 'unified' system established. |
|
8904
|
Bank debt restructuring agreement.i |
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9000
|
Interest rate liberalized. Mehrez and Kaufmann Liberalization date. a1 |
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9100
|
Capital market reform and a privatization program broaden market during 1991. Policy of mass participation results in 620,000 shareholders, an increase of 55% from 400,000 shareholders a year earlier. |
|
9100
|
Agreement reached on a foreign debt accord with the Paris Club to reschedule debt as well as a new stand-by agreement with the IMF.t |
|
9100
|
Government realized about US$91 million from privatization of public enterprises. |
|
9100
|
1991-1995, banking crises.a1 |
|
9107
|
Withholding tax on dividends cut from 15% to 5%. |
|
9112
|
Total Nigerian debt estimated at $34B. Bank debt restructuring agreement.i |
|
9203
|
Government announces that Naira would be devalued more than 40% to close the gap between official and parallel rates. Effective March naira will be allowed to float. |
|
9204
|
Government devalues naira by more than 40% to meet IMF conditions. Nigerian central bank no longer sets exchange rate--naira floats freely. |
|
9208
|
Military government begins federal government overhaul. |
|
9211
|
Transition from military to civilian rule is postponed. Presidential primaries held in September are voided by President on grounds of fraud and corruption. |
|
9212
|
Total Nigerian debt is $30B. |
|
9300
|
Banking crises: insolvent banks accounted for 20% of total assets and 22% of banking system deposits. Causes: large overhang of uncollected loans, political interference, macro instability, deficient bank management, insider trading, fraud, lack of strong regulatory and supervisory enforcement and political will, and inaction towards insolvent banks. No overall change in macro policy.a2 |
|
9308
|
Successful democratic transition of power as president Babangida resigns and government headed by Chief Shonekan installed with elections scheduled for 9402. |
|
9401
|
Balanced budget presented with an inflation target of 15%. The budget is viewed to be unrealistic considering Nigeria's deficit constitutes 17.5% of GDP and the inflation rate in 1993 was 100%. Furthermore the 9401 budget bans the parallel exchange rate and pegs the naira to the dollar. |
|
9404
|
Presidential elections to be held. |
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9406
|
Chief Moshood Abiola, winner of the annulled 1993 presidential elections, declared himself president. Ruling military leaders arrested Abiola and charged him with treason. Arrest of Abiola caused labor strikes. Oil worker strike begins. |
|
9409
|
Oil worker strike ends. |
|
9410
|
Finance minister is dismissed. |
|
9500
|
Government budget released. The budget repeals the Exchange Control Act of 1962 and the Enterprise Promotion Act of 1989. It also legalized the autonomous foreign exchange market that was banned in 9401. Repeal of the Exchange Control and Enterprises Promotion act cleared the way for the stock exchange to be opened to foreign portfolio investment. |
|
9501
|
Bekaert/Harvey Official Liberalization date. [NBER version]. |
|
9503
|
IFC decides to use the autonomous exchange rate instead of the official exchange rate. |
|
9504
|
SEC helps Nigerian Stock Exchange set new daily price change ceilings. |
|
9508
|
Government released the Nigerian Investment Promotion Decree and the Foreign Exchange monitoring and Miscellaneous Provisions Decree. These decrees opened the Nigerian market to foreign portfolio investment. |
|
9508
|
Bekaert/Harvey Official Liberalization date. [Final version]. |
|
9511
|
Government opens Nigerian markets to foreign investment (implementation). |
|
9500
|
Banking crises: almost half of the banks are reported to be in financial distress. a2 |
|
9701
|
Finance Minister Anthony Ani reiterated the government's objective to switch from restoring economic stability to targeting growth and privatizing state-run companies. |
|
9703
|
Authorities devalued the national currency by more than 6%. The 40% cut to the 1997 budget for the multinational oil companies operating in Nigeria. |
|
9704
|
The government decided to allow ownership of up to 100% in a bank, as opposed to a previous maximum of 10% for individuals and 30% for institutions. Nigerian Stock Exchange introduced a computerized clearing system. |
|
9708
|
The Nigerian Stock Exchange (NSE) was instructed to open a branch in the administrative capital Abuja. Nigeria's military government told states and federal agencies not to sign any foreign loans without vetting by the Finance Ministry. |
|
9709
|
Five distressed banks that failed to meet listing requirements were de-listed from NSE. |
|
9712
|
Nigeria's refineries were operating at far below capacity from management and technical problems. |
|
9801
|
The promise to privatize telecom firm NITEL and a plan to open a new stock exchange in the administrative capital in Abuja were included in the 1998 budget. |
|
9804
|
All five registered political parties had nominated military ruler Gen. Sani Abacha as their consensus candidate for the August presidential elections. A special military tribunal sentenced the country's former deputy leader and four others to death for plotting to overthrow military leader Abacha. |
|
9805
|
Seven anti-Abacha protesters were shot dead in a May Day riot. |
|
980508
|
ADR effective date. (Company=UNITED BANK FOR AFRICA PLC - 144A, Exchange=PORTAL)a11 |
|
9806
|
Death of military ruler Sani Abacha. The appointment of new Nigerian leader Gen. Abdulsalam Abubakar. Shell, Mobil, Elf-Aquitaine, and Agip were given import contracts. |
| 9808 | An election commission for presidential elections in February 1999 was established in early August. |
| 9810 | The government announced that the deficit would have to be paid off by drawing down on 1.87 billion naira in foreign reserves. |
| 9812 | The government announced its plans to deregulate fuel prices to end years of crippling gas shortages. Nigiria has failed to meet consumer demand despite massive import. |
| 9901 | The 1999 budget reintroduced exercise duties on spirits and cigarettes that had been scrapped the previous year. |
| 9902 | On February 27, General Olusegun Obasanjo, flag-bearer of the Peoples Democratic Party (PDP), won the Nigerian presidential election. |
| 9904 | The Nigerian Stock Exchange finally launched its long-delayed Automated Trading System (ATS) |
|
9906
|
President Olusegun Obasanjo took office. |
|
9907
|
The local banks gave investors very attractive bank money market rates to meet the dire need for more naira. The government issued a renew call to international investors to take up the government's stake in key quoted companies worth approximately 10 billion naira ($105 million). |
|
9911
|
South Africa's M-Net-Supersport was listed, becoming the exchange's first cross-border listing and its most heavily capitalized stock. |
|
9912
|
Interest rate declined from 40% in July to a low of 20%. |
|
200000
|
OPEC raised the Nigerian oil export quota and oil price rose. The news from Texaco on a huge oil discovery boosted the market. The government would privatize 37 companies, mainly in tourism, airline, sugar, and petroleum industries. The president elections resulted in new corporate leaderships. President Olusegun Obasanjo dismissed the management of NITEL and NEPA, the telecommunications and electricity monopolies, to improve efficiency. Nigeria signed an Investment Promotion and Protection Agreement with Germany. Christian/Muslim clashed in Kaduna and several Royal Dutch/Shell employees were kidnapped. |
|
200004
|
Foreign-exchange reserves reached US$6.7 billion. The Lagos State Government/Enron IPP project was finally approved. The European Union announced that it would review US$400 million in grants. The World Bank approved US$75 million for financial reforms and a US$80 million loan to fund poverty programs. |
|
200007
|
Nigeria Airways, NICON Insurance, and the National Aviation Handling Company were privatized. A new memorandum of understanding favoring foreign investors was signed with Nigeria's oil venture partners. |
|
200008
|
The central bank lowered the lending rates. |
|
200009
|
Strikes in oil companies weighed on the markets. |
|
200000
|
In the forth quarter, the central bank eliminated the funding of foreign-exchange requests for basic and personal travel allowances through the inter-bank foreign-exchange market. A newly launched currency exchange, NIFEX, allowed the participating banks to set the exchange rate independently. |
|
200012
|
The National Petroleum Corporation (NPC) and Agip agreed to develop jointly two new oilfields. The Paris Club announced that Nigeria would undergo debt restructuring. OPEC raised Nigeria's oil quota again. The Nigerian Communications Commission (NCC) said it would auction off four mobile phone licenses in January 2001, and Daar Communications was granted approval to carry international voice and data transmission. |
|
200101
|
A digital mobile auction worth US$1.1 billion was concluded successfully. The controversial sale of National Oil and Chemical Marketing was the largest transaction of the year at 19.6 billion naira. Authorities issued medium-term securities at 19-20% yields to eliminate excess liquidity and increase cash reserve ratios for banks to hold down inflationary pressures. |
|
200106
|
The president dismissed eight top government officials in a bid to speed up economic reform. To control import levels, the Central Bank of Nigeria (CBN) scrutinized bank accounts and limited illegal imports. The central bank introduced Nigeria's highest denomination note, worth 500 naira. |
|
200107
|
Six new companies were listed for privatization. |
|
200100
|
In the third quarter, CBN raised its rediscount rate to 20.5% from 18.5%. |
|
200111
|
51% stake of NITEL was sold to British Investor International, but investor sentiment remained bearish. |
|
200112
|
Attorney General and Minister of Justice Chief Bola Ige was assassinated. |
| 011206 | With the country's external borrowing estimated at upwards of US$30bn, the federal government yesterday introduced a number of new measures aimed at discouraging external borrowing by state agencies and state governments. The Information and National Orientation Minister, Professor Jerry Gana, said the imposition of the stringent conditions is intended to curtail external borrowing. 'We don't want to increase Nigeria's debt burden. If we have our way, we will ban borrowing. But we can't. These guidelines are to guard against irresponsible loans. We are not against state governments borrowing. But if you want Federal Government guaranteed loans, then you must go through the guidelines and satisfy them. This is because if you are guaranteed by the Federal Government and you don't pay, the government will pay with Nigeria's money,' he explained. Under the new 12-point guideline, applicant state governments or agencies are required to obtain a federal government approval in principle before starting negotiations and also show evidence that it has not over-borrowed in the past. Under the regime classified into specific and general rules, no applicant, whether a state government or federal government parastatal, is allowed to borrow above US$500m (N50bn) for non-poverty alleviation projects. Gana added that the new guidelines also limit borrowing under the International Monetary Fund (IMF) Standby Agreement to only highly concessional rates in which the grant element is over 60%. Furthermore, he said that external loans - which should not attract more than a 1% interest rate and not less than a 10-year moratorium period - must be for financing poverty eradication and infrastructure projects. |
| 020104 | The first person to be executed under the Shar'ia Islamic code of law was hanged in Kaduna State northern Nigeria, yesterday. The man was convicted of murdering a mother and her two children by stabbing them to death. Tried in Katsina court, the man was originally sentenced to a similar death by stabbing using the same knife he had used to kill his victims, as permitted under then Islamic code. However, the punishment was changed to death by hanging after authorities feared that the sentence would lead to a renewed outbreak of Christian/ Muslim violence, and was transferred to the only state with suitable facilities to carry out the hanging - Kaduna. Shar'ia law has been used to govern northern Muslim Nigeria for centuries, though the strict Islamic punishments were outlawed during the British colonial period. |
| 020104 | The Central Bank of Nigeria (CBN) announced this week that all existing banks would need to raise their capital base from N500,000 (US$4,200) to N1bn by the end of 2002. The move is thought to have been sparked by speculation that many of the banks are on the verge of collapse due to a weak capital base, something strenuously denied by the CBN. The move follows rises last year in the capital base requirements for new banks from N1bn to N2bn. The changes were announced as part of the Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for banks and other financial institutions that sets down the policies for the current fiscal year. |
| 020124 | Details of the country's first ever trade policy were finally released yesterday, following announcements of its approval in early January. High hopes are pinned on the policy, hoping to encourage hikes in the production and distribution of goods both domestically and internationally. The policy aims to liberalise the market economy, promote and diversify exports and gradually liberalise the import market. It is hoped that such changes will also attract more foreign investment, with incentive packages aimed at e-commerce and domestic support |
| 020205 | It appears that the first phase of privatisation has been a success. Thirty-four firms were privatised through the Nigerian Stock Exchange (NSE), raising an extra N20.2bn (US$188.19m) this year alone. The Nigerian government hopes the privatisation effort will stimulate private investment in key economic enterprises, create new jobs and encourage competition. However, despite praise from the World Bank for the efficacy of the privatisation programme, Deputy General Manager, Research and Information Technology of the NSE Kene Okafor said that there are still problems to be addressed before the next round. |
| 020227 | Vice President Atiku Abubakar was reported on Monday to have stated that the World Bank is ready to inject an investment of funds of US$100 million into rural development into the country. The money will be used in conjunction with rural co-operatives. The money would be administered along with government agencies', and the government's own funds |
| 020228 | A meltdown of the Nigerian Stock Exchange (NSE) last week served to affirm the exchange's poor reputation. Trading did not begin until 2.30pm (local time) last Tuesday (19th February) and then only resumed using outmoded manual systems. Reasons for the late start have recently been blamed on an IT failure. The breakdown caused stock prices to slump. Some of the biggest names listed on the NSE include Agip Nigeria Plc, TotalFinaElf, National Oil, Nestle Nigeria, WAPCO, Texaco, Union Dicon Salt, Vitafoam, Nigerian Bottling Company and DN Meyer. Nigeria loses millions of US dollars every year, as local funds are invested in foreign banks and stock markets. The potential for big profits on the NSE does not outweigh the risks for all but a few. |
| 020321 | Royal Dutch/Shell gave Nigeria's oil and gas sector a vote of confidence yesterday by approving US$7.5bn worth of investment in expanding oil and gas production over the next three years. The money will be put up by Shell and its consortium partners (the Nigerian National Petroleum Corporation [NNPC], TotalFinaElf and ENI), in a move which suggests faith in future export opportunities |
| 020322 | In a surprise move, the federal government of Nigeria has issued a statement to the 12 northern states that have adopted Shari'a law, declaring that the punishments meted out under the Islamic code are unconstitutional and divisive |
| 020412 | At a recent conference organised by the Institute of Directors (IOD) and the UN's Development Programme (UNDP), substantial criticism was levelled at the nation's sparse corporate governance rules. Critics pointed out that the rules have not evolved, due to the continuing and extensive presence of the government within the financial sector. However, critics also slammed the lack of corporate governance regulations and their poor enforcement, which has led to a lack of transparency and accountability. For the second largest sub-Saharan economy, the development and enforcement of good corporate governance practices are vital if the country is to become more attractive, not just to the numerous oil companies already established there, but to other much needed investors |
| 020418 | The Nigerian government has offered an out-of-court settlement to the family of former military dictator Sani Abacha, which has seen the return of US$1bn of stolen funds. As part of the deal, the Abacha family will retain US$100m, which they have reportedly proved to be family earnings from before General Sani Abacha took power. The Nigerian government has also dropped criminal proceedings that were to be carried out abroad against the Abacha family |
| 020502 | Authorities in the south-western Oyo state have been resisting calls for the introduction of Islamic Shar'ia Law. However, a ceremony in the central mosque in Ibadan has seen the inauguration of a panel of Islamic heads who will use Shar'ia Law to rule on civic matters in Oyo, such as marriage, divorce and land issues. If the panel is indeed able to function, this will be the first southern state in Nigeria to have adopted the Islamic code, which in the north of the country has seen severe punishments handed out for the crimes that have been tried under its authority, such as stoning, amputation and even death. Fears have been raised that the action to set up a panel of Shar'ia 'judges' will spark protest and could lead to clashes between Christian and Muslim residents. |
| 020619 | Every year Nigeria's budget is bounced back and forth between the president and the senate in a power struggle over the control of government revenue. This is a poor indictment of Nigeria's administration and needs to be addressed if the country's commitment to reform and development is to be taken seriously. |
| 020709 | According to Nigeria's Debt Management Office (DMO), the country's 36 states owe a total of US$7.2bn in debt to foreign creditors. Many of the debts are from loans taken out between 1980 and 1984, and the DMO director-general, Akin Arikawe, has stressed that the central government would no longer approve such loans. Most of the states would be left with little or no money if they attempted to start paying back the loans they owe. However, a Debt Management Bill currently before parliament will also make it much more difficult for states to borrow, as they will now require prior parliamentary approval to do so. Nigeria owes an estimated US$38bn in external debt, much of it to the Paris Club of creditors. |
| 020725 | President Olusegun Obasanjo revealed yesterday (24 July 2002) that Nigeria has lost over US$50bn in payable duties to importers who claim to be importing duty-free books, when in fact they are bringing in other goods. He said that the development has forced the government to abolish the duty-free status on many goods, which means that a minimum duty of 2.5% will now be applied to products such as books, agricultural inputs and fertilisers. Opponents of the bill said that it would further damage Nigerian education and agriculture |
| 020731 | The World Bank has decided to halve its lending capacity to Nigeria in the run-up to the country's landmark elections next year, which are increasing concerns about the country's public spending plans. The Bank stressed that it had no plans to disengage from Nigeria, but was worried about the current deadlock between President Olusegun Obasanjo and parliament over the annual budget and would reduce lending capacity to US$200m as a result. The budget dispute reflects a wider tension over the balance of power between the executive and the legislature. President Obasanjo, who was elected in 1999 after 16 years of military rule, clashed with the National Assembly after it voted to increase the budget by a massive US$1.88bn, which would place enormous stress on the government's fiscal position. |
| 020802 | The current OPEC president and former Nigerian oil minister, Rilwanu Lukman, has attempted to quash speculation that Nigeria was ready to leave OPEC yesterday (1 August 2002) and said that the government was determined to stay within the organisation, but would seek to increase its quota. Nigeria's OPEC quota has fallen from 2.2m bpd to 1.78m bpd over the past 18 months as the organisation seeks to lift flagging oil prices. However, at the same time, Nigeria has been encouraging foreign operators to invest in new production facilities and the quotas are now restricting oil companies' production ability and this could affect future investment decisions if OPEC does not increase Nigeria's quota. Nigerian President Olusegun Obasanjo's recent call for higher quotas does not come at a good time for OPEC. |
| 020815 | While the National Electoral Commission challenges a court decision that could allow more political parties to contest the forthcoming polls, the election schedule has been put on hold. Crucial legislative and presidential elections are a year away, but local elections were due to take place on 4 August 2002. This is not the only complication in the voting schedule. A delay in completing voter registration had already seen the local election date set back. No new date has yet been set and is now unlikely to be settled soon. Five political parties that had been barred from contesting next year's national elections had challenged their exclusion in the courts. |
| 020815 | President Obasanjo has rejected a call from the House of Representatives for his resignation. Obasanjo promised he will continue to serve his country, despite the obvious opposition to his continued leadership from the lower house, including members of his own party, something that will almost certainly impede Obasanjo's chances of retaining the presidency at next year's elections |
| 020828 | The Central Bank of Nigeria (CBN) has announced that servicing of the country's outstanding US$33bn in external debt is to be stopped. Oil earnings have halved in H1 2002 and the bank has decided to face the scorn of donors rather than eat further into dwindling reserves |
| 020902 | The West African gas pipeline project will make its first delivery in 2005, taking natural gas from Nigeria to nearby Togo. Preliminary work started on the pipeline project back in 1992 and is estimated to cost US$500m. As well as Togo, Benin and Ghana will also benefit from receiving gas through the pipeline |
| 020920 | Nigeria's debt management office (DMO) has reported that the country has fallen behind in servicing its US$28.3bn foreign-debt obligations, despite paying US$700m so far this year. A spokesman said in a television interview that although the country was expected to pay creditors US$3bn in 2002, the National Assembly had approved only US$1.5bn, out of which US$700m had been paid. He also said that the present administration had paid US$6bn in external debt since taking office in 1999. The DMO was established by President Olusegun Obasanjo to bring together the various agencies that previously handled debt payments and to liaise with Nigeria's creditors |
| 020925 | The eldest son of one Nigeria's most corrupt and brutal military leaders, Sani Abacha, is to be released from prison. Mohammed Abacha has been in prison for more than three years on charges of murder and embezzlement. He has been released on the promise that he and his family will return to the state some US$1bn in stolen funds, as agreed in an out-of-court settlement in April 2002 |
| 021003 | The national budget has still not been signed into existence this year. Arguments over spending allocations have seen the draft batted between the senate, the legislature and the presidency for 10 months now. However, with elections scheduled for 2003, spending has been high. The expansionary fiscal position of the government has prompted the sale of N150bn (US$1.2bn) of bonds to be floated on the capital market. |
| 021008 | The government has set its budget limit for the fiscal year (FY) 2003 at N850bn (US$6.6bn), even though the FY2002 budget is still be implemented. Predicated on projected oil prices of US$20/b, the FY2003 framework projects total revenues of N1.63trn, of which N1.23trn is expected to be derived from oil. The budget framework marks a +9.1% increase on the N780bn budget outline originally proposed for 2002, and 20.1% less than the N1.06trn framework that was eventually ratified by the National Assembly. However, the government has been unable to actually implement the 2002 budget as revenues fell far short of expectations after oil prices declined below projections, and the privatisation of NITEL, the state-owned telecoms firm, failed. |
| 021024 | The government originally promised to abide by the International Court of Justice's decision over the sovereignty of the oil-rich Bakassi peninsula, but after the ruling did not go in Nigeria's favour, it has changed tack and now refuses to withdraw troops from the area |
| 021028 | Following a similar vote by the lower House of Representatives on 23 October 2002, the Senate passed a law on 24 October 2002 that gives the country's oil-producing littoral states a 13% share of revenues from 'offshore' oil wells. Oil producers currently get 13% of all revenue from onshore oil wells. The issue of whether the states are entitled to offshore oil receipts was threatening to become high profile in next year's presidential elections as these states constitute a significant support base for the ruling party. Additionally, the approved law was proposed by President Olusegun Obasanjo as a way of defusing regional tensions between the oil-producing south and the north, which broadly opposes the measure. |
| 021108 | Nigeria's inflation rate has fallen from 15.6% in August 2002 to 14.8% in September 2002, according to a presidential economic adviser. The decrease was due to a decline in the rate of price rises for food, drink and household goods. The Nigerian currency, the naira, has also stabilised in the last three months to between N125 and N127 to the dollar, following the introduction of an auction system of foreign exchange |
| 021127 | The authorities offered to buy back some US$2bn of Brady bonds held by commercial creditors yesterday (26 November 2002) in an effort to help the country reduce its increasingly unsustainable debt burden. The sovereign is currently in default of US$22bn of Paris club obligations and is struggling to meet payments on US$3.5bn of London club debt. Although the government has accepted in the past default and restructuring on sovereign obligations, it has yet to do so on commercial debt. Most of the country's sovereign obligations are interest and principal defaults, chiefly dating from the early 1980s. Earlier this year, the government failed to take a window of opportunity in reaching a deal with the IMF that would have paved the way to some form of debt relief. Brady bonds are current trading at around 65 cents on the dollar |
| 021210 | The privatisation of the loss-making, state-run Nigerian Railway Corporation (NRC) is set to go ahead. According to the government's privatisation agency, the Bureau of Public Enterprise (BPE), the process will begin with the sale of NRC's non-core assets, including the printing press, advertising facilities, hospitals and catering services. The government decided to privatise NRC, which was once considered to be one of the largest rail networks in Africa with some 3,500km of track, earlier this year and appointing the Canadian management consultancy firm, Kana. The decision to privatise was forced upon the government as it sought ways to find the millions of dollars it needs to modernise its hopelessly outdated network and equipment |
| 021216 | President Olusegun Obasanjo has signed into law three new bills already passed by the Senate and House of Representatives just one day before a deadline set by the international Financial Action Task Force (FATF) to tighten money-laundering legislation. |
| 021224 | The Central Bank of Nigeria (CBN) has reduced its base interest rate from 18.5% to 16.5%, following a cut in July 2002 from 20.5% to 18.5%. The move is in response to directives from President Olusegun Obasanjo that rates should be reduced to stimulate investment in the more productive sectors of the economy. Nigerian manufacturers have long complained of the high lending rates, which have stunted investment and growth. The CBN also said that the rate cut is aimed at reducing inflation, which dropped in October 2002 from 14.8% to 13.6% |
| 030204 | Around 2,000 Nigerian students marched on the National Assembly in Abuja yesterday (3 February 2003) to protest against privatisation and commercialisation in education and to demand universal free education and university bursaries. Outside the Assembly buildings, where armed police assembled to halt the march, student leaders decried the federal government's approach to education in Nigeria. They pointed out that while the UN Educational, Scientific and Cultural Organisation (UNESCO) had recommended Nigeria spend 26% of its income on education, the country's 2003 budget had only allocated 1.83%. The students' protest comes amid a series of strikes by teachers and non-academic university staff over pay rises and investment levels in the education sector |
| 030204 | The Federal High Court in Lagos has dismissed the government's objection to a legal suit that has sought to undermine the administration's recovery of money allegedly embezzled by former military ruler Sani Abacha. Since the collapse of a deal in September 2002 for the voluntary return of the funds, which amount to some US$3bn, the Nigerian government has attempted to reach agreements with the International Police (INTERPOL) in Liechtenstein, Switzerland, Luxembourg, the UK and the US, which would enable the Nigerian authorities to recover the money directly. The suit, brought by supporters of Abacha's family, seeks to prevent the federal government from requesting assistance from foreign countries in the recovery of the money, on the basis that such requests are 'unconstitutional' and contravene the plaintiffs' rights under the law. |
| 030218 | Efforts by the Nigerian government to create a full and accurate database of its citizens is due to begin today with the registration of the country's 60m adult citizens. The process is scheduled to last for two weeks, with eligible Nigerians attending 60,000 centres manned by 246,000 temporary workers across the country. Officials will record the name, gender, height, address, occupation, and state of origin of each registrant, collecting a photograph and a fingerprint. Records will then be collated before identity cards are issued. The project is designed to provide the government with the kind of information it needs to devise revenue-reallocation formulae, which determine the amount of funds paid to state governments on the basis of their estimated population. |
| 030307 | After weeks of speculation, the ruling People's Democratic Party (PDP) and the opposition Alliance for Democracy (AD) have confirmed that they are to co-operate during the current election campaign. A coalition between the two parties had appeared increasingly likely after the AD decided not to register a presidential candidate last week. The opposition group dominates south-western Nigeria, a region in which the PDP failed to poll strongly at the last election in 1999. An association with the AD may help President Olusegun Obasanjo's party to offset the loss of support from the northern power-brokers now thought to support the All Nigeria People's Party (ANPP) and its presidential candidate, former military ruler Muhammadu Buhari. However, affiliation with the AD will cost the PDP dearly. |
| 030305 | Federal police in Abuja have confirmed reports that Harry Marshall of the opposition All Nigeria People's Party (ANPP) was shot dead at his home at around 04:30 this morning (5 March 2003). An ANPP luminary, Marshall had been directing the party's campaign in his home region of Rivers State. An ANPP spokesman described the killing as 'a targeted annihilation of ANPP stalwarts'. Some reports have connected Marshall's murder to an allegation he reportedly made yesterday to the police that Rivers State Governor Peter Odili has been stockpiling weapons ahead of the elections tabled for April and May 2003. |
| 030328 | Whilst attention in Nigeria is firmly fixed on the looming spectre of political violence ahead of the forthcoming elections in April 2003, the Nigerian Finance Ministry has cut an important deal with the UK to reschedule US$5.76bn of bilateral debt. The agreement incorporates an 18-year repayment schedule (including a three-year moratorium) at a fixed interest rate of 4.6% per annum until 2014, when it will be reviewed and fixed until the expiry of the agreement. Finance Minster Adamu Ciroma has welcomed the deal as 'a golden opportunity for the resumption of normal business, trade and investment relations between our two countries'. |
| 030403 | Having secured a commitment from the Nigeria Labour Congress (NLC) not to embark on strike action over pay in the run-up to this month's legislative and presidential elections, the Nigerian government has denied reports that it agreed to the NLC's demand for a 12.5% increase in civil-service salaries. Information Minister Jerry Gana maintains that any pay increases will be worked out by a joint committee. |
| 030522 | Information Minister Jerry Gana has announced the liquidation of the national airline Nigeria Airways. For much of its 44-year existence, the carrier has been plagued by debt and corrupt management. As long ago as the early 1980s, Nigeria Airways was held up as an example of 'all that is wrong with Nigeria'. In announcing the liquidation, Gana pointed to very serious problems regarding the carrier's debt profile, 'liquidation threats, (and) depletion of its fleet and assets'. For some time, the airline has only had one operational aeroplane, relying on chartered aircraft to service its dwindling number of international routes. |
| 030530 | Nigerian President Olusegun Obasanjo was inaugurated yesterday (29 May 2003) after a troubled election campaign, disputed polls and the messy aftermath of the country's first transition from one civilian administration to another. |
| 030605 | Foreign reserves rose from US$8.19bn in March 2003 to US$9.42bn in April 2003, a 15% increase, according to the Central Bank this week. The sharp rise results from higher oil exports, which averaged 2.02m barrels per day (bpd) in April 2003 compared to 1.95 bpd the previous month. Nigeria's output ceiling has risen from 2.017m bpd to 2.092m bpd as of 1 June 2003, as mandated by the Organization of the Petroleum Exporting Countries (OPEC), and oil producers are reportedly pumping close to full capacity following disruptions in March 2003 triggered by political turbulence |
| 030821 | The Central Bank of Nigeria (CBN) yesterday announced a reduction of its Minimum Re-discount Rate (MRR) by 150 basis points, from 16.5% to 15%, to improve the cost of funds for private sector investment and encourage growth. The MRR is the rate at which the CBN lends to commercial banks and serves as a benchmark for the leading interest rate. The announcement follows preceding cuts from 18.5% to 16.5% in December 2002, and from 20.5% to 18.5% in July 2002. According to the CBN's director of research, Dr Joseph Nnana, the cut was justified due to the stable economic conditions in the first half of the year. Inflation on a 12-month moving average has declined, from 12.9% in December of last year to 10% in May. |
| 030822 | With a N150bn (US$1.07bn) bond issue, the Nigerian government is returning to the country's long-term debt market for the first time in 16 years after its exit in 1987. The bond issue is part of the government's strategy to restructure its current domestic debt portfolio, intended to finance the local currency portion of its budgetary deficit. Since 1987 the government had used 91-day Nigerian Treasury bills and also relied on the Central Bank for short-term borrowings. |
| 030822 | The Nigerian Finance Minister, Dr Ngozi Okonjo-Iweala, announced that Nigeria had agreed a rescheduling of its debt of US$444.55m (N56.5bn) with Belgium. In the agreement signed yesterday, Belgium will allow Nigeria to repay its debt over an 18-year period at a fixed rate of 5.3% per annum, with a three-year moratorium. The agreement with Belgium was the eighth of the 15 foreseen under the minutes signed in December 2000 with the 15 member countries of the Paris Club, Nigeria's largest creditor, holding a good 75% of its external debt. Okonjo-Iweala expressed her hopes that the most recent debt-rescheduling agreement would provide an impetus to finalising the negotiations with the other Paris Club countries. |
| 030903 | The African Development Bank (ADB) has cut 80% of its funding to Nigerian projects under the African rural water supply pilot programme, and has ordered state governments to repay the loans already disbursed 'whether they like it or not'. The Bank's vice president, Dr Bisi Ogunjobi, overshadowed the agenda of an Abuja meeting held to plot new water development by telling the audience - including reporters from This Day - that the vast majority of the project funds had been diverted into private pockets by local officials. Later, according to a Daily Trust report, Bank officials meeting with President Obasanjo heard the President's regret at the pull-out and promise that Nigeria would be included in later stages of the project. |
| 030922 | Nigeria has concluded another agreement with a Paris Club member by signing a debt rescheduling with Japan for the US$3.072bn owed to the Japanese Ministry of Economy, Trade and Industry (METI) and the US$515.6m owed to the Japan Bank for International Cooperation (JBIC). Nigeria will now repay this debt over 18 years, with the usual three-year moratorium as applied in the previous reschedulings, and at an interest rate of 2.6% to 2.9%. |
| 030926 | Speaking on the importance of marketing to support the government's privatisation programme, Deputy Senate President Ibrahim Mantu yesterday noted that Nigeria's federal government had spent a total of US$12bn in subsidies to various Nigerian parastatals from 1998 to 2001. According to his figures, yearly government disbursements had been a huge US$6bn and US$8bn in 1998 and 1999 respectively. These then decreased to US$1.4bn in 2000, before rising again to US$4bn in 2001. Citing these enormous disbursements, he underscored the necessity for faster and more comprehensive privatisation to end this drain on government resources; the privatisation process is moving at snail's pace in Nigeria. |
| 031007 | Nigeria has withdrawn its bid to hold the 2010 World Cup, opting instead to support South Africa's attempt to host the global football tournament. WMRC looks at why the Nigerian bid was abandoned and finds many of the factors are the same as those affecting other business operations in the country |
| 031009 | A general strike called for today by Nigeria's unions has been averted, after the government seemed to back down on the policy of deregulating the pump price of petrol. |
| 031031 | In the wake of the showdown over the fuel price issue, it has emerged that President Olusegun Obasanjo is trying to break the back of the country's Nigeria Labour Congress by introducing new amendments to union legislation |
| 031112 | Nigerian Finance Minister Ngozi Okonjo-Iweala has announced that a total of US$2.5bn has been earmarked for debt servicing in 2004. Of the amount, US$500m will be allocated to domestic obligations, US$1bn for repayments to the Paris Club of sovereign creditors, US$700m for multilateral lenders and US$300m for the London Club of commercial creditors |
| 031130 | According to the acting director of Nigeria's Debt Management Office (DMO), Dr Mansur Muktar, the recently issued N150bn (US$1.07bn) bond has been undersubscribed by 51.63%. Although the first tranche, the FGN Bonds 2006, had been oversubscribed by 85.75%, the total bond issue fell short of expectations. The FGN Bond 2008 was only subscribed by 30.69%, the FGN Floating Rate Bond 2010 by 9.9%, and the FGN Floating Rate Bond by 2013 by 1.4%. As Finance Minister Dr Ngozi Okonjo-Iweala is entitled to vary the amounts of any of the tranches, she ended up reallocating N26bn to the initial N30bn FGN Bond 2006. Of the investors that subsrcibed for the bond, 56% were commercial banks. |
| 031230 | Nigerian officials at the country's Debt Management Office have revealed that Nigeria spent US$1.8bn on servicing its large stock of foreign debt during 2003. The country's external indebtedness stands at around US$30.9bn, or just under 60% of GDP in dollar terms, the bulk of which is owed to Paris Club creditors. The office also revealed that it was spending around N1 trillion (US$7.166bn) servicing domestic debts. The government has set aside US$2.5bn to repay foreign indebtedness next year, but officials have warned that current provisions are insufficient to maintain the 'unsustainable' debt position, as the government is only servicing the debt at present rather than paying off the principal. Much of the payments are being channelled into penalty payments for past indiscretions. |
| 040106 | The Central Bank of Nigeria (CBN) yesterday released figures revealing that the country's economy grew by 3.5% in 2003, thereby falling short of both previous growth rates and anticipated targets. The government had hoped for growth of 5%, though ultimately it even fell short of the 3.9% recorded through 2002. Foreign reserves held by the bank also fell, from US$8bn in December 2002 to US$7.5bn in November 2003, partly reflecting the effects of disruption in the oil-producing areas on the country's export receipts. However, inflation fell in the same period - from 12.9% to 10.07% - a trend attributed by the CBN to a good harvest that reduced food prices across the country. The drop could have been greater, if it was not for high government spending in the run-up to the April 2003 elections. |
| 040115 | According to the Central Bank of Nigeria (CBN), inflation rose on a monthly basis to 12.8% in November 2003. This was up from 12.3% the previous month and 10.7% in September 2003. However, the figure was still below the 12.3% recorded for November 2002. The CBN attributed the monthly rise to petrol-sector deregulation, and depreciation of the naira |
| 040123 | The International Finance Corporation (IFC), the private-sector arm of the World Bank Group, has announced it will establish a new US$40m trade finance facility with Standard Chartered Bank to expand the provision of trade finance services by Nigerian banks. The IFC argues one of the bottlenecks for Nigerian firms looking for trade finance is that even well-reputed banks have problems in obtaining trade-finance confirmation lines from international banks |
| 040130 | According to Director of Banking Supervision Ignatius Imala, the Central Bank of Nigeria (CBN) will impose an upper limit on collateralised loans that banks can give to their directors, aiming to put a lid on insider lending. CBN had already fixed a limit of N50,000 (US$300) for uncollateralised loans. |
| 040205 | US oilfield services giant Halliburton is under investigation by the US Justice Department's fraud section, for possible transgression of anti-bribery laws whilst being part of a consortium bidding for contracts to construct a liquefied natural gas (LNG) plant at Bonny Island in Nigeria. Newsweek magazine yesterday reported that around US$180m may have been paid out in kickbacks whist current US Vice President Dick Cheney was Halliburton's chairman. Halliburton is also the subject of an ongoing investigation that was opened after the US Securities and Exchange Commission's (SEC) discovery of a substantial hole in balance sheets filed by the company. This led to an admission that Nigerian Halliburton subsidiary Kellogg, Brown and Root had made improper payments of around US$2.4m to a Nigerian government official who said that as a 'tax consultant', he could arrange for the wiping of around US$5m in tax arrears owned by the company; this matter is under continuing investigation. |
| 040218 | On 16 February President Olusegun Obasanjo signed a new bill into law resolving the question of what proportion of offshore oil revenues can be claimed by oil-producing states - an issue that has dogged his presidency since the very beginning |
| 040223 | According to the Director General of Nigeria's Debt Management Office (DMO), Dr Mansur Muhtar, Nigeria's domestic debt had reached N1.36trn (US$10.04bn) by December 2003. Despite the substantial increase in volume from N1.1bn in 1970, as a percentage of GDP domestic debt has grown more slowly, from 18% in 1970 to 22.2% at the end of 2003. Dr Muhtar expressed his concern over high borrowing from the Central Bank of Nigeria (CBN), which is currently at 51.65%, as the CBN typically takes up the residual from undersubscribed offerings. Moreover, 62% of the domestic debt is in three-month treasury bills that are being rolled over on a weekly basis, creating roll-over and interest-rate risks. |
| 040324 | According to the spokesman of the Central Bank of Nigeria (CNB), Tony Ede, the CBN has halted plans to withdraw N40bn (US$306m) from the banking system. This plan had been announced earlier by the Monetary Policy Committee as a measure to reduce excess liquidity in the system, and thus control inflation and reduce interest rates. The plan was suspended as the seven clearing banks of the new clearing system had paid N105bn in clearing collateral, which had taken enough liquidity out of the market. |
| 040331 | Senator Alfredo Luigui Mantica, part of an Italian delegation visiting Nigeria, has said that the Italian government has ruled out writing off Nigeria's debt of over US$2bn. He claimed that Italy does not consider that Nigeria is entitled to the conditions granted to Highly Indebted Poor Countries (HIPC), a classification that still eludes Nigeria, as the oil producer has sufficient resources to service this debt. However, Italy is in the process of restructuring and rescheduling Nigeria's debt, and will sign the agreement soon. |
| 040402 | The Central Bank of Nigeria (CBN) aims to withdraw N845bn (US$6.46bn) in the second quarter of 2004 in the form of 91-day treasury bills. N325bn are to be issued in April, and N260bn in May and June respectively. This is in anticipation of increased government spending once the 2004 budget is enacted. It is also part of a treasury bill restructuring programme that the Debt management Office (DMO) announced recently. Under this programme, the DMO aims to even out the maturing of treasury bills by issuing them in equal batches of N65bn a week, and eventually roll over at least 50% of the stock of outstanding treasury bills into six and twelve-month maturities. |
| 040419 | Nigeria's National Assembly has directed that the presidency must give a monthly briefing to it on the extent of proceeds from the sales of crude oil, according to the Daily Champion. Nigeria has budgeted for a crude oil sale price of US$25/b, and what happens to revenues attained from sales at prices above this point is somewhat vague, although Finance Minister Ngozi Okonjo-Iweala has been attempting to introduce a new Fiscal Responsibility Bill in an effort to clarify this process |
| 040422 | Nigeria's government is set to adopt a policy of using the revenues from oil sold at above a US$25 per barrel benchmark to pay off the foreign debt owned by the country's constituent states. The suggestion, made by the Revenue Mobilisation Allocation and Fiscal Commission, was accepted by Nigeria's civil service Commissioners of Finance at a meeting on Tuesday in the capital Abuja. |
| 040430 | Nigeria's Central Bank Governor Joseph Sanusi last week handed in his resignation as expected as he neared the end of a five-year term in the post. The announcement was made public yesterday and shortly afterwards President Obasanjo named his successor: Prof. Charles Chukwuma Soludo, currently chief economic advisor to the president and head of the National Planning Commission. |
| 040505 | The Central Bank of Nigeria (CBN) is taking action against reports that banks were violating an agreement to keep interest rates at 4% above the Minimum Rediscount Rate (MRR), which has been fixed at 15% since August 2003 |
| 040512 | The Central Bank of Nigeria (CNB) announced that it would suspend the Debt Conversion Programme (DCP) introduced in 1988, due to decreasing investor interest. The DCP had enabled holders of Nigerian promissory notes and other debt instruments to convert them into naira to invest in the Nigerian economy. Typically converted with a 40% discount, around US$1.6bn of redeemed debt had been invested in some 700 projects, mostly in manufacturing, but also in agro-processing, building, construction, hotels and tourism. |
| 040525 | Nigeria Claims 10.2% Growth in 2003 |
| 040616 | The court injunction that forced the Nigerian government to revert to the pre-January 2004 price of fuel may have averted a long and drawn-out Nigerian Labour Congress (NLC) strike, but the crisis is not over yet. |
| 040618 | Nigeria's Zenith Bank Plc has announced an Initial Public Offering, which has been approved by the country's Securities and Exchange Commission and Stock Exchange, making it the biggest-ever such offer in the country's history. Zenith, Nigeria's fourth-largest private financial institution, will issue 800 million 50-kobo shares at N10.90 (8 US cents) per share, making a potential capital injection of N8.7bn (US$66.9m), with which the bank is seeking to fund branch expansion, investment in information technology, as well as creating a new pool of working capital. The offer, open from 1 to 29 July, will see the bank's market capitalisation rise from the current N33.8bn (US$260m) to N42.5bn (US$326.9m). |
| 040715 | Nigerian Commerce Minister Idris Adamu Waziri has announced that his country has been duly certified for trade preferences under the US Africa Growth And Opportunity Act (AGOA). The AGOA, recently renewed until 2015, allows preferential access to US markets for a specified range of goods originating in African countries that satisfy certain criteria on the rule of law, economic policies, poverty reduction and workers' rights. Nigeria has been negotiating for several months for the perk, which will allow textile and apparel exports to the US, free of tariffs and quotas |
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Regulations on Foreign Investors |
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1998
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Restrictions: Ownership of 5% or more of a company's shares requires notification to the NSE. Acquisitions, mergers, or takeovers are required to put the matter before the shareholders of the companies involved and also require the approval of the court. Taxation: 10% withholding tax on rents, dividends, interests, and directors' fee. 20% capital-gains tax.a6 |
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2000 |
On 28 March 2000, Nigeria signed an Investment Protection and Promotion Agreement with Germany. Similar agreements are already in place with the UK, Bulgaria, China, France, North Korea, South Korea, the Netherlands, Romania, Taiwan and Turkey. Also in March 2000, Nigeria and India launched a Joint Co-operation Commission intended to strengthen bilateral trading relations. After the much-publicised visit by former US president Bill Clinton in August 2000, the US is seeking to extend trade relations with Nigeria beyond oil, under the Americas Growth and Opportunities Act (AGOA). Foreign companies are treated as partners and, especially in the oil and gas industries, are engaged in close co-habitation with state-owned enterprises |
Last updated on 7/23/04 by Jerome Mo, Duke University