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NIGERIA’S MOST AUTHORITATIVE NEWSPAPER IN POLITICS AND BUSINESS /newtelegraph
Vol. 1 No. 307
Monday, December 22, 2014
@newtelegraph1 www.newtelegraphonline.com
N150
N10bn jet: Reps to appeal stoppage of Alison-Madueke's probe}6
IOCs consider cost-saving plans Adeola Yusuf
T
he continuous fall in the price of crude oil at the international market has compelled in-
ternational oil companies (IOCs) to mull adopting some cost-cutting measures to safeguard their continued profitability, New Telegraph has learnt. The price of crude oil,
which fell to $58 per barrel last Friday, has dipped by over 50 per cent since June, throwing the economy of Nigeria and other oil producers into crisis. This has forced Nige-
ria to among other monetary measures, slash its 2015 budget, reduce the oil benchmark on which to anchor revenue projection as well as devalue the CONTINUED ON PAGE 7
NEW TELEG
RAPH MOND AY, DECEM
Money Line
BER 22, 2014
Banks cut, restructure to oil secto exposure r
35
Stock Wat ch
Berger Paint Tough milieus Nigeria: cuts profit
37
Insurance
FG hinge s slow grow consumer th on poor trust
Business Job lo 38
WhAt'S NeW S
Nigeria acco 11% of N13 unts for road, rail 4trn MEA projects A new
report Constructio issued by Timet ric’s has estim n Intelligence Centr billion of ated that about $791 e road and projects rail relate are being d or under way in 21 planned countries including Nigeria.
APPREHEN SION The affec ted work ers have been tidyin g up with a view to leaving their posit ions in January
Wole Shad are
P
Interview
Fall in oil price, prosp ect developme nt, says Obarofor
21
42-43
Page 21
sses continue to in aviatio personnel, n others to go in Jan
Skilled
alpable fear the aviat has gripped over imm ion industry of retire professioninent sack of ment stipu ers in the are als and p.22 sector. oth- firstto leave the agenlated by law Aside cies in the up with a view week of to have people who were to leavi positions The affec January 2015. ng their next ted work Fresh cris ployed been ‘illegally’ said was learn ly air traffi Investigat month. by ers, emt, have Aviation, former Mini c contr been tidyi it graph indic ion by New affected ster of ollers, NITEL saleis rocks Stell Teleng 15 by the a Odua former technical ated that at least policy. governmeare h and Acting Direc personnel, $252.25m s for al of the nt tor-Gener-a Nige majorAuthority ria Civil Aviat The sale CONT INUED Adeyilkek (NCAA), Bene ion of ON PAGE Nigerian Nigeria’s state-own dict 22 been slate a, more peop Telecommu ed le have d Limited nications (Nitel Penultimafor retrenchm ent. arm, Mobil ) and its mobil te week NCAA , over 187 workers (Mtel), is eTelecommunicatie of their were reliev once again ons jobs down in ed employed for allegedly confusion. bogged being by Adey without due proce ileka Aviation in three mont ss hs. Minister, Chidoka, Osita the high recently lame rate of nted in the secto employme nt p.36 ation wherr, saying that a far outw e supportiv situeighs techn e staff is not perm ical staff He told issible. holders a gathering of that stakerecurrent a situation where persedes expenditure far could leadcapital expenditusuof facili to lack of provi re ties sion L-R: A sour for the industry The Business Consular . the Nige ce who work Nigeria Limite General, United Desk s States of d, Mr Adeola Ayodele Aminu America agement rian Airspace with Seven-Up Adeluyi; Embassy Bottling Deputy Editor Manag in Nigeri Company New TelegAgency (NAM Man(Busine a, Mr Jeffery Plc, Mr Sunil ing Director/CEO A) Bayo Akomo ss) Hankin , Airtel that the raph at the week told Sawhney, lafe austerity at the launch Nigeria, Mr Oluseg s; Managing Direct Asst. Editor end the Fede (Maritim un Oguns or, Cocaof Airtel ral Gove measure that anya and Cola Touching Sunday Ojeme e) to intro rnment Managing Lives TV duce next plans Series Asst. Editor Director, see to the (Insurance) year could PHOTO: GODWI in Lagos. Godson Ikoro N IREKHE of work lay-off of majo ers. Asst. Editor rity (Money Market The sourc ) e, who Dele Alao der the condition spoke unIndustry & ity, said Agric of anon that ymDayo Ayeye Editor already general mi , over mana Property Editor three majo gers acros 40 Adeo la Yusuf s the r aviat Adeola Yusuf cies - the ion agen Energy Editor Airports NAMA, the Fede fall in oil uture oil prices in Wole Shada (FAAN) Authority of Nige ral tiona the re ments of and gas inves and the Aviation Editor t- said. l market, Gold inter na- of Aviation Nigerian ria $930 billio man Sach Nige 2020 prod Chris Ugwu uctio s lion who have Authority (NCACivil producin ria and othe n in In its Top bpd of 2025 n and 7.5 milr oil Capital Market g natio 400 analy their posit spent eight yearsA) - a new ns are unde world prod three threa AbdulwahabEditor in r field ’s largest new sis of the cent per cent and uction, or to hit the ions but who This is t. Isa oil and gas s, Gold eight per of curre mandatory are yet nies beca Finance Editor nt globa that pre-s man Sachs are plann use oil comp 60 years l oil defound mand. ancti Kunle Azeez aing proje cellation These cts can- are uneconom on fields that Senior Corresp due to the ic at $70/b rel Bren accordingfuture investmen ondent persi stent Chuks Onuan to the ts, million t crude represent ar- 15 resea yin December barrels INFLA rch note 2.3 Energy per day published October 2014.. TION RATE (bpd) Nnamdi Amadi by Rates September ..........................8.1 CONT INUED LENDING Dashbo Reporter % 2014............ RATE ON PAGE InterBank ard Johnson Adeba August 2014.. .........8.3% 22 Rate.. ..................12 yo .................... Prime Lendi Asst Produc EXCHANGE .57% ......8.5% tion Editor ng Rate.. RATE (Parallel .........1 Maximum As at Dec. USD . . . . Lending Rate.. 7.93% 19) EXCHANGE . .26.83% Pounds . . . . . . . . . . . . . . . . . RATE N193 . (Official As Euro . . . . . . . . . . . . . . . . . . . .N295 at Dec. 19) USD l Foreig . . . . . ... ......... n Reserv . . . . N23 Pounds . . . . . . . . . . . . . . . . . es – $35.19 4 . N169 . bn as at 18/12/2014 Euro . . . . . . . . . . . . . . . . . .N263 ......... Source: CBN . . . . . . N207. .78 20
12 pages of incisive Business
Crush them now Nigeria, ot hers mul gas projec ts annulml $930bn oil, ent F
lGen. Danjuma says war against Boko Haram taking too long }5
Ogun State Governor, Senator Ibikunle Amosun (middle), his wife, Olufunso; Secretary to Ogun State Government, Mr. Taiwo Adeoluwa; Head of Service, Mrs. Modupe Adekunle and other government officials at the children's Christmas party in Abeokuta...yesterday
Travel Advisory Your guide to local and international flights 4
How Obasanjo failed to influence choice of Buhari's deputy lJonathan begs aspirants not to defect Donald Ojogo and Anule Emmanuel Abuja
F
acts have emerged on how former President Olusegun Obasanjo schemed to influ-
ence the choice of All Progressives Congress (APC) presidential candidate and running mate.
New Telegraph learnt at the weekend that the former president had tacitly CONTINUED ON PAGE 6
Quick Read
Editorial
Terrorism and security in schools }19 FG releases N230bn to federal varsities }8