FG begins preparation for 2018 budget
Barely 24 hours after signing the 2017 Appropriation Bill into law, Acting President Yemi Osinbajo on Tuesday in Abuja started preparatory activities for the 2018 budget based on the Federal Government’s Economic Recovery and Growth Plan.
Anchored by the Ministry of Budget and National Planning, the process is to ensure that the 2018 budget aligns with the provisions of the ERGP and is ready for presentation to the National Assembly by early October this year.
NSE to launch Exchange Traded Derivatives
The Nigerian Stock Exchange (NSE) has concluded arrangements to introduce Exchange Traded Derivatives (ETDs) into the market to expand its various investment instruments. Speaking at a training on legal and risk aspects of derivatives and central counterparty clearing in Lagos, First NSE’s Vice President, Mr. Abimbola Ogunbanjo, said the Exchange would launch the ETDs into the market later this year.
ETDs are variants of derivatives traded on an organised securities exchange as against those other derivatives traded through informal over-the-counter (OTC) market. Derivatives derive their values from their underlying assets, such as commodities, stocks, bonds, interest rates and currencies as well as other derivatives and indices.
Divide among Banks Widens as Small Lenders Face Cash Crunch
The divide between the haves and the have-nots among Nigerian banks is widening, a report by Bloomberg has indicated.
The country’s biggest lender by market capitalisation, Guaranty Trust Bank Plc, is so flush with cash it plans to repay its $400 million of bonds when they become due in November 2018 rather than issuing additional debt, while the Zenith Bank Plc and United Bank for Africa (UBA) Plc – the next largest banks by market capitalisation – sold international bonds for the first time since 2014.
Oando concludes 396.8m shares debt-to-equity deal
Oando Plc yesterday concluded a debt-to-equity conversion with the listing of about 396.8 million ordinary shares that resulted from the transaction at the Nigerian Stock Exchange (NSE). The transaction was valued at N3.17 billion at the closing value of the integrated energy group.
The listing of the conversion shares increased Oando’s outstanding paid up shares from 12.034 billion ordinary shares to 12.431 billion ordinary shares. Oando’s market capitalisation however increased slightly from pre-conversion value of N99.082 billion to N99.451 billion after Oando’s share price dropped by 15 kobo or 1.84 per cent from opening value of N8.15 to close yesterday at N8 per share.
Efforts on economy’ll fail if interest rates remain high – Senate
The Senate on Tuesday stated that business enterprises could not survive under the current interest rates being charged by financial institutions, which range between 25 and 30 per cent.
The legislature noted that the economy would not grow despite the current efforts by the Federal Government to revive it if the interest rates remained high.
Skye Bank Promises to Release 2016 Audited Accounts Soon
Skye Bank Plc on Tuesday said its audited financial results for the year ended December 31, 2016, would be released soon. In a notification to the Nigerian Stock Exchange (NSE), Skye Bank said most of the challenges faced in the completion of the audit exercise have been surmounted.
According to the bank, the results are with the Central Bank of Nigeria, for approval.
“This is to inform the NSE, our esteemed shareholders and other stakeholders of Skye Bank Plc of the reasons for the Bank’s inability to file the audited financial statement of Skye Bank Plc for the year ended 31 December 2016 within the extended time granted by the NSE.
FG to raise $600m from SWF, NSE for mining
The Federal Government has started the process of raising $600m for the development of the solid minerals sector, Acting President Yemi Osinbajo has said. Osinbajo said this in a keynote address delivered at the opening of the National Mining Summit in Abuja on Tuesday.
According to him, the fund will be raised through the Nigerian Sovereign Wealth Investment Authority and the Nigerian Stock Exchange. He said, “We are currently working with the Nigerian Sovereign Wealth Investment Authority, the Nigerian Stock Exchange and others to assemble a $600m investment fund for the sector.
FG’s Debt to Expand with N1.021tn Treasury Bills
In line with the federal government’s domestic borrowing plan, the Central Bank of Nigeria (CBN) plans to issue treasury bills worth N1.021 trillion between June and August this year. According to the CBN’s Nigerian Treasury Bills issue programme, a total of N214 billion would be raised by issuing 91-day, 182-day and 364-day treasury bills on June 15.
Also, on June 22, the Bank would also sell treasury bills worth N133 billion, while on July 6, the fixed income instrument valued at N177 billion would be issued by the CBN.
Berger Paints allays fears of disruption of operations
The Management of paint manufacturing company, Berger Paints Nigeria Plc, has assured the Nigerian Stock Exchange (NSE), and the investing public that the peaceful demonstration by some sections of the staff over the exit date for gratuity would not have adverse effects on its operations.
Following the new development on pension, the company’s board had earlier fixed December 2015, as the exit date for the gratuity but increased the employer’s pension contributions and announced other allowances to boost staff morale.
Dabiri-Erewa Urges Nigerians to Invest in $300m Diaspora Bond
The Senior Special Assistant to the President on Foreign Affairs and Diaspora, Hon. Abike Dabiri-Erewa has urged all Nigerians to take advantage of the first ever diaspora offer by buying into the bond.
The Debt Management Office (DMO) had announced the commencement of a global offering of Nigeria’s first diaspora bond by filing a registration statement for the bonds with the U.S. Securities and Exchange Commission.
FIRS rakes in N778.19b in Q1
The Federal Inland Revenue Service (FIRS) generated N778.19 billion revenue in the first quarter of 2017, a progress report by the agency has indicated’
The report which was sent to the Federal Ministry of Finance, showed the revenue performance for the first quarter of 2017 and the breakdown of money collected. According to the report, the FIRS collected N338.3 billion as Petroleum Profit Tax between January and March, as against the N176.7 billion collected in the review period in 2016.
CAP Plc Shareholders Approve N1.54 Billion Dividend
Shareholders of CAP Plc, a subsidiary of UAC of Nigeria Plc, on Tuesday approved the sum of N1.54 billion recommended as dividend for the year ended December 31, 2016. The dividend, which translates to 220 kobo per share was approved by the shareholders at the annual general meeting (AGM) in Lagos.
The company, which manufactures Dulux, a leading global paint brand ended the year with a turnover ofN6.81billion and profit of N2.32 billion. Chairman of CAP Plc, Mr. Larry Ettah, in his address to the shareholders said the company expanded its distribution network by opening five Dulux Colour shops in the course of the year.