Data obtained from the Nigerian Interbank Settlement System (NIBSS) show that the volume of transactions executed by bank customers in the country reached 1.65 million on New Year’s day.
According to the live updates provided, NIBSS Instant Payments (NIP) transactions stood at 1,646,443 as of 3.54pm on 1st January 2020.
The high volume must have been triggered by the New Year celebrations across the country, which prompted many Nigerians and foreign nationals in the country to spend heavily on entertainment and shopping according to the spirit of the season.
The NIBSS data equally demonstrate that failed transaction rate was low on New Year’s day, standing at 0.91%. This implies that 14,985 fail transactions were recorded as against a successful payment volume of 1.631 million.
Trends over the years have shown that the NIP is the most active electronic payment platform in Nigeria, much bigger than the Point of Sales Terminal (POS) as far as the total value of transactions is concerned.
The total number of deals carried out via the POS platform as of 3.54pm on New Year’s day was 555,976. 71,715 transactions, representing 12.92% of the entire POS transaction volume, were reported as failed deals.
Analysis of the e-platform efficiency data reveals that factors such as system malfunction, account name mismatch and customers exceeding transfer limits accounted most for the failed transactions recorded via the NIP platform.
For the POS platform, errors originating from customers, acquirer banks and issuer banks constituted roughly five per cent of the failure rate.
Interestingly, the New Year’s Day coincided with the effective date of the newly reviewed bank charges by the Central Bank of Nigeria (CBN).
With the new reform, the fee chargeable on every withdrawal carried out on other bank’s ATM is now N35 as against the former N65.
For electronic payments, the CBN replaced a graduated fee scale method for electronic transfers with a flat fee method with the maximum of N50. This means that any transfer between banks below N10,000 will attract a maximum of N10 charge. Meanwhile, any transaction of this type above N50,000 will attract a N50 charge.
The CBN stopped card maintenance fee on current accounts and reviewed the card maintenance fee on savings accounts from N50 per month to N50 per quarter.
Also, annual card maintenance fee on cards denominated in foreign currency was slashed from $20 to $10.
The total amount of money spent by the Federal Government, through the Nigerian National Petroleum Corporation (NNPC) on subsidising Premium Motor Spirit in December 2019, stood at N55.58 billion, data from the Petroleum Products Pricing Regulatory Agency (PPPRA) has revealed.
The PPPRA data, obtained on Thursday, shows that Expected Open Market Price (EOPM) of petrol, according to the pricing templates for PMS from 1st to 31st December 2019 stood at an average of N176.4 per litre. This suggests that the FG spent an average of N31.4 subsidy on every litre of petrol, whose regulated price is N145 per litre.
The EOMP of petrol is the price the commodity is expected to be sold to motorists should the FG stop paying subsidy on petrol.
According to the Daily Truck-Out Reports for PMS for December 2019, the volume of PMS distributed across Nigeria showed that 1.77 billion litres of PMS was supplied across the country during the month. This represents an average daily PMS supply of 57.1 million litres.
With an average of N31.4 per litre spent on 1.77 billion litres, the FG spent a total of N55.28 billion subsidising PMS in December 2019. The figure indicates that 16.3 per cent of the N306 billion allocated for fuel subsidy payment in the 2019 budget was spent in December last year.
The NNPC, being the sole importer of petrol into Nigeria, bears the cost of subsidising the commodity by subtracting the cost out of the earnings from its domestic crude oil sales before remitting the rest to the federation account.
Using some selected days in December, the PPPRA data revealed that EOPMs of PMS were N166.44 per litre, N165.98 per litre, N170.36 per litre and N171.12 per litre for the days between 2nd to 6th of December 2019, translating to subsidy of N21.44 per litre, N20.98 per litre, N25.36 per litre and N26.12 per litre in that order.
The EOMPs for 9th and 12th December 2019 stood at N172.73 per litre and N172.92 per litre respectively, translating to subsidy of N27.73 per litre and N27.92 per litre in that order. From 16th to 20th December 2019, the EOMPs stood at N177.33, N77.32, N174.81, N177.92 and N180.22 per litre respectively, indicating subsidy of N32.33 per litre, N32.32 per litre, N29.81 per litre, N32.92 and N35.22 per litre in that order.
The FG paid N35.78 per litre, N37.53 per litre and N37.53 per litre as subsidy for 23rd, 24th and 27th December 2019 respectively while the EOMPs for those dates stood at N180.78 per litre, N182.53 per litre and N184.64 per litre in that order.
For 30th and 31st December 2019, the FG spent N37.58 and N36.07 per litre respectively as subsidy while the EOMPs for those dates stood at N182.58 per litre N181.07 per litre in that order.
The 2019 Disaster Estimates report of Swiss Reinsurance Institute has revealed that global insurance and reinsurance companies accounted for $56 billion out of the $140 billion posted as total economic losses from natural and man-made catastrophes in 2019.
The report notes that insured losses dropped from the 2017 figure of $93 billion and stand far below the yearly average of $75 billion for the previous 10 years.
It goes further to state that tropical cyclone activity in the second part of 2019 escalated overall insurance losses following a relatively benign first half of the year. However smaller and mid-sized events were ultimately responsible for more than half of the losses.
Equally, economic losses were significantly lower than the $176 billion posted last year as natural disasters constituted $133 billion of the losses in 2019 and $166 billion in 2018.
Swiss Re disclosed that $50 billion was the value of insured losses from natural catastrophes in 2019 compared to 2018 when the figure was $84 billion. Similarly, losses from man-made disasters were $6 billion in 2019 relative to the $9 billion posted in 2018.
Sigma Reinsurance rated Hurricane Dorian and Typhoons Faxai and Hagibis as the most important loss events of 2019 with insured losses valued at about $4.5 billion, $7 billon and $8 billion in that order.
Swiss Re said “After some years of relative calm, the experience of the last two years reaffirms that typhoon risk remains a major vulnerability for Japan,” warning that Japan’s urban areas remain vulnerable irrespective of availability of mitigation infrastructure.
It listed the possible effects of climate change on the storm losses though it said the matter was probably underlined by various heat waves and dry spells around the world this year.
Unprecedented temperature highs were responsible for the ruinous wildfires in places like Australia, the US, Canada, Indonesia, Siberia, the Amazon region and some other places while flooding and hailstorms accounted for huge damage to vehicles, property and agriculture all around the world.
Martin Bertogg, Head Catastrophe Perils at the Swiss Re Institute, in his response to the report, said “There is more scientific evidence that climate change impacts the frequency and severity of secondary peril events today, warranting more focus for research. For primary perils like typhoons, science is far less conclusive.”
“Also, macro risk factors like rapidly growing populations and property values in exposed areas contribute to the increase in losses resulting from natural catastrophes globally, making experience a less definite predictor for future losses.”
Swiss Re nevertheless declared that its loss estimates are subject to change given that not all loss-generating events have been fully evaluated.
The Nigerian National Petroleum Corporation (NNPC) recorded a trading surplus of ₦13.23billion in October 2019.
This represented an increase of 54 per cent compared to ₦8.59 billion surplus posted in September 2019.
The Corporation disclosed this in its Monthly Financial and Operation Report (MFOR) for the month of October released in Abuja, on Wednesday.
The report reflected the sustained streak of positive results in the operations of the National Oil Company.
It added that the September 2019 trading surplus of ₦8.59 billion in turn indicated a significant increase of 65 per cent compared to the ₦5.20billion surplus posted in August 2019.
The report noted that the August surplus also beat the ₦4.26billion surplus posted in July 2019, reflecting an increase of 22 per cent.
The report revealed that the October surplus was largely due to the improved trading surplus posted by its Upstream subsidiary, the Nigerian Petroleum Development Company (NPDC).
On Crude oil and Gas sales, it said that a total Crude Oil and Gas export sales of 483.25 million dollars were made in October 2019.
It said this was an increase of 35.77 percentage point, compared to September, implying that in October, Crude oil export contributed 396.94million dollars (82.14 per cent) of the dollar transactions, compared with 267.97million dollars contribution in the September 2019.
It noted that the export Gas sales for the month amounted to 86.32 million dollars.
“Overall, the October 2018 to October 2019 Crude Oil and Gas transactions indicated that Crude Oil and Gas worth 5.49 billion dollars was exported,’’ it said.
In the Downstream Sector, it said that 1.16billion litres of Premium Motor Spirit(PMS) also known as petrol, translating to 37.30mn liters/day, were supplied for the month.
It noted that the corporation had continued to monitor the daily stock of PMS in order to achieve smooth distribution of petroleum products and zero fuel queue nationwide.
The report said that in October 2019, 35 vandalized-pipeline points, representing a decrease of 81 per cent from the 186 vandalized-points in September 2019, were recorded.
“Out of the vandalized points, eight failed to be welded, while only one pipeline was ruptured, with Ibadan-Ilorin axis accounting for 34 per cent of the breaks.
“ATC-Mosimi and other routes accounted for 23 per cent and 43 per cent, respectively,’’ it noted.
In the Gas Sector, the report said that out of the 235.82 billion Cubic Feet (BCF) of gas supplied in October 2019, a total of 134.97 BCF of gas was commercialized, consisting of 31.37 BCF for domestic market and 103.60 BCF for export market.
This, it said translated to a total supply of 1.01 Million Standard Cubic Feet (mmscfd) of gas to the domestic market and 3.34 mmscfd of gas supplied to the export market.
It said that during the month, 57.23 per cent of the average daily gas produced was commercialized, while the balance of 42.77 per cent was re-injected, used as Upstream fuel gas or flared.