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Nigeria : Corona outbreak pulls down oil prices below budget benchmark

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Nigeria’s budget estimate appears threatened as oil price drops $5 below the 2020 benchmark on global fears over the impact of the Coronavirus epidemic.

Brent crude which is the international benchmark for crude oil, traded at $51.95 per barrel. This figure is $5 lower than Nigeria’s $57 crude oil price benchmark in the 2020 budget.

The United States West Texas Intermediate, WTI, traded at $47.31 per barrel, down 2.91percent.

According to the International Energy Agency (IEA), global oil demand will witness its first contraction in a decade because the Coronavirus outbreak has resulted in a partial shutdown of the Chinese economy.

For Nigeria, this does not tell a good story as the country depends on crude oil for an estimated 90 percent of export earnings and more than 50 percent of government revenue.

The outbreak has also affected businesses and governments across the world as the supply of some raw materials have been delayed and conferences cancelled.

Commenting on the impact of reduced oil prices on Nigeria’s economy and the risk of a recession, Lukman Otunuga, FXTM research analyst, said recession will continue to hang over the Nigerian economy for as long as crude oil remains the primary source of revenue.

“falling oil presents negative consequences for the economy, especially when considering how roughly 90 percent of export earnings and over 50 percent of government revenues are from crude exports,” he said.

“What is even more alarming is Nigeria’s 2020 budget which has set the benchmark for oil at $57. With Brent and Crude both depreciating over 15 percent since the start of 2020, it raises tough questions whether Nigeria will meet its oil revenue goal of N2.64 trillion.

“The woes do not end here. Foreign exchange reserves are poised to decline on lower oil which not only complicates the Central Bank of Nigeria’s (CBN) efforts to defend the Naira but raises the risk of inflation running rampant.

The toxic combination of lower government revenues, rising consumer prices and weakening local currency is more than enough to threaten Nigeria’s fragile economic recovery.

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Polaris Bank Boosts Government’s Fight against COVID-19, Provides 400 specialized beds and Accessories

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  Polaris Bank has given a boost to government efforts in the fight against coronavirus (Covid-19). Polaris Bank has acquired 400 specialised hospital beds, complete with mattresses and accessories. The beds according to the Bank, will be handed over to the Lagos State Government; being the state most hit by the pandemic, the Nigeria Centre for Disease Control (NCDC) and other State Governments. 
 
The Bank also announced that it would be partnering with the Nigeria Coalition Against COVID-19 (NCAC), Non-Governmental Organisations (NGOs), Health Institutions and State Governments in stemming the tide of the COVID-19 pandemic by delivering additional materials to cover the areas of testing, isolation, treatment and training.


 
The Managing Director/CEO, Polaris Bank, Tokunbo Abiru, who disclosed this in a letter to the customers and stakeholders of the Bank, explained that the Bank, working with relevant partners and government, remains committed to “doing everything possible to keep our environment safe for all”.
 
“At Polaris Bank, we will continue to devote all necessary resources to contribute to the safety of our esteemed customers and our environment as a whole, while maintaining all of the banking services you need to stay safe.”
 
The Chief Executive Officer also affirmed his commitment to the total well-being of Nigerians and the fight against COVID-19 noting that “as new developments emerge,the Bank would continue to share information about safety of its staff and working environment as well as the efficiency of its operations and service to stakeholders.
 
 
Polaris Bank had in the wake of the outbreak of COVID 19 activated its Business Continuity Plan (BCP) which ensures that it can maintain its operations and enable financial transactions, even during critical incidents “The Bank had suspended all corporate events, travels, and outdoor activities as well as enforced social distancing which ensured that all staff who have just returned from travels outside Nigeria are placed on self-isolation.
 
Polaris Bank in line with its Corporate Social Responsibility & Sustainability Policy has continued to integrate social and environmental issues into its business operations intervening in the activities of its stakeholders, including staff, customers, government and local communities. 
 
Polaris Bank is a future-determining Bank and a member of the United Nations Environment    Programme Finance Initiative (UNEP FI) which seeks to engage the private sector and the global financial sector to help create a financial sector that serves people and planet while delivering positive impact.  
 

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Why Access Bank is Asking Customers Who Visited One of its Branches to Self Quarantine

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As the dreaded Covid-19 continues to take its toll on human lives and businesses, Access Bank Plc has announced the temporary closure of one of its branches in Lagos State after a customer tested positive for coronavirus

According to a Daily Post report, a the bank has confirmed that one of it’s customer, who visited its Ligali Ayorinde branch in Victoria Island, Lagos tested positive for Coronavirus.

Consequently, Access Bank in a statement advised anyone who came into the bank for transactions in the last 14 days to self-quarantine.

Nigerian Centre for Disease Control on Monday announced the first fatality of the disease on Nigerian soil. The center also confirmed 36 cases of patients with COVID-19 as Nigeria Centre for Disease Control (NCDC).

The first person to have died of coronavirus as announced by NCDC is now known to be a 67-year-old man who returned to the country following medical treatment in the United Kingdom, UK

The victim’s identity was revealed to be a former Managing Director of Pipelines and Products Marketing Company (PPMC), Suleiman Achimugu.

A statement from Access Bank reads : “We have confirmed that an individual who visited our Ligali Ayorinde branch on Monday 16th March 2020, has tested positive for Coronavirus.

He was symptom-free as at the time of visit and he is currently being monitored at an Isolation Centre in Yaba.

“It is advised that anyone who visited the branch in the last week should self-quarantine for a period of 14 days starting immediately. Persons who had any contact with the concerned individual are currently in isolation.”

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