Economic News Update

Business & Economic News Update: Friday, 29th September, 2017

 

Govt to float $2.5b Eurobond to bridge 2017 budget

The Debt Management Office (DMO) said yesterday  the Federal Government would float Eurobond to raise 2.5 billion dollars before December. DMO Director-General Patience Oniha stated this at the 2017 Nigerian Debt Capital Markets Conference and Awards, organised by the FMDQ OTC Securities Exchange in Lagos.

She said the borrowing would enable the country to bridge the gap in the 2017 budget, which is facing liquidity problem, to finance capital projects. Oniha said the proposed Eurobond issuance would complement the 1.5 billion dollars raised from the international market in March.

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MAN wants FG to review procurement thresholds, preference for local goods

Worried about the lack of competitiveness of local manufacturing companies as a result of inadequate infrastructure, operating environment and low patronage, manufacturers have charged the Federal Government on the need to revisit its procurement thresholds and integrate them in the value-chain.

According to the Manufacturers Association of Nigeria (MAN), integrating local producers in the value-chain through policy frameworks will help revive the ailing sector as well as promote job creation efforts of the real sector.

Read More

FG to borrow $5.5bn via Eurobonds by year-end

The Federal Government is planning to sell as much as $5.5bn of Eurobonds in the next three months to fund capital projects and replace naira-denominated debt, the Debt Management Office has said.

Yields on existing bonds rose to the highest in two months. The new offer will bring the amount raised through Eurobond sales by the nation this year to more than $7bn.

Read More

Fidelity Bank Launches $500 Million Eurobond to Boost Operations

Fidelity Bank Plc thursday announced plans to launch up to $500 million Senior Unsecured Medium Notes (Eurobond) as well as a tender offer to purchase the banks’ outstanding $300 million 6.875 per cent Notes due May 9, 2018.

Fidelity Bank disclosed this in a notification to the Nigerian Stock Exchange (NSE). According to the bank, it intends to list the $500 million on the Irish Stock Exchange with the expectations that the notes will be traded on its regulated market.

Read More

World’s most expensive commercial jet opens, costs N15.3m per hour

The world’s most luxurious commercial jet ever has taken to the skies with a ticket rate that cost at least N15.3 million per hour.

The Crystal Skye – a privately-owned converted Boeing 777-200LR that accommodates just 88 passengers – boasts a spacious dining area, a mixologist and seats that convert into spacious beds for the super rich. Launched by United States-based Travel Company, Crystal Cruises, last month, tickets for a 14-day ‘hop-on hop-off’ ride on the palatial plane start at $50,000 (N15.3 million) per hour.

Read More

Be corporate governance watch dogs, shareholders urged

Shareholders have been urged to exercise their ownership functions in companies  they invest to encourage corporate governance. The Head, Investment Research & Corporate Strategy, Stanbic IBTC Pension Managers Limited, Mr. Charles Omoera, made the call at the 25th Annual General Meeting (AGM) of the Institute of Chartered Secretaries & Administrators of Nigeria (ICSAN).

The theme of the AGM, which held in Lagos, during the week, was “The Agency Dilemma: The impact of Shareholders Engagement”. Omoera said: “Institutional shareholders should serve as corporate governance watch dogs over the companies they invested in. Majority shareholders almost always get their way and their interests are not necessarily aligned with those of the minority shareholders.”

Read More

Afreximbank Beats Private Placement Target

The African Export-Import Bank (Afreximbank) said it is off to a successful listing of its depositary receipts (DRs) on the official market of the Stock Exchange of Mauritius (SEM) following the close of the private placement with subscription far in excess of the $100 million minimum target.

The first day of listing and trading of the Afreximbank DRs would be October 4, when 5,000 DRs must, by regulation, be made available for trading at a price of $4.30 per DR. The private placement closed on September 26.

Read More

‘We’ll consult Nigerians before selling 40% stake in Discos’

The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has said the Federal Government will consult Nigerians before going ahead to sell its 40 per cent stake in the electricity distribution companies. Fashola stated this on Thursday in Lagos at a policy dialogue on the power sector organised by the Lagos Chamber of Commerce and Industry.

The Federal Government had in November 2013 sold 60 per cent of its interest in the Discos to private investors during the privatisation of the successor generation and distribution companies carved out of the defunct Power Holding Company of Nigeria.

Read More

First Bank increases stake in FBN DRC Limited

First Bank of Nigeria Limited, the foremost Nigerian bank, announced the acquisition of the remaining shares in FBNBank DRC Limited (FBNBank DRC), making it FirstBank’s wholly owned Subsidiary.

FirstBank said this follows its initial investment in FBNBank DRC (formerly Banque Internationale de Credit) in 2011, when the Bank acquired a 75 per cent stake in FBNBank DRC. Following the acquisition, FBNBank DRC has continued to expand its product offerings, deepen its customer base, and is currently ranked amongst the top five banks serving the Democratic Republic of Congo (DRC), a country with a population of more than 82 million.

Read More

Nigeria’s Manufacturing Index Sustains Upswing in September

Nigeria’s Manufacturing Purchasing Managers’ Index (PMI) stood at 55.3 index points in September 2017, indicating expansion in the manufacturing sector for the sixth consecutive month. The PMI is an indicator of the economic health of the manufacturing sector. The PMI is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

According to the PMI report posted on the central bank’s website yesterday, 14 of the 16 sub-sectors reported growth in the review month in the following order: appliances & components; electrical equipment; chemical & pharmaceutical products; …

Read More

NASU threatens Fed Govt over minimum wage

The Federal Government may have more to contend with in the area of industrial unrest, if it fails to commence negotiations on the minimum wage and conclude it before the end of the year.

The threat, coming from the Non-Academic Staff Union of Educational and Associated Institutions (NASU), may not be an empty one, bearing in mind that the union, last week, suspended for a month its five-week nationwide strike, in conjunction with two other non-teaching staff unions in universities – the National Association of Academic Technologists (NAAT) and the Senior Staff Association of Nigerian Universities (SSANU).

Read More

Nigeria targets $30b non-oil revenue

To restructure the economy, the Federal Government is targeting at least $30 billion revenue from non-oil sources. This will be an increase of $25billion from the current $5 billion.

Nigerian Export Promotion Council (NEPC) Director – General Segun Awolowo announced this plan yesterday after the National Economic Council (NEC) meeting chaired by Vice – President Yemi Osinbajo at the Presidential Villa. With him at the briefing were Ebonyi State Governor Dave Umahi, Kwara State Governor Ahmed Abdulfattah and Kebbi State Governor Atiku Bagudu.

Read More

FAAC allocation increased by N169.9bn in August

The Federation Account Allocation Committee on Thursday shared the sum of N637.7bn among the three tiers of government. The amount, which is for statutory allocation for the month of August, represents an increase of N169.9bn over the N467.8bn, which the committee allocated in the month of July.

Addressing journalists shortly after the meeting, which was held at the headquarters of the Ministry of Finance in Abuja, the Accountant-General of the Federation, Ahmed Idris, said there was a significant increase in revenue for August.

Read More

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Economic News Update

Business & Economic News Update: Friday, 29th September, 2017

 

Govt to float $2.5b Eurobond to bridge 2017 budget

The Debt Management Office (DMO) said yesterday  the Federal Government would float Eurobond to raise 2.5 billion dollars before December. DMO Director-General Patience Oniha stated this at the 2017 Nigerian Debt Capital Markets Conference and Awards, organised by the FMDQ OTC Securities Exchange in Lagos.

She said the borrowing would enable the country to bridge the gap in the 2017 budget, which is facing liquidity problem, to finance capital projects. Oniha said the proposed Eurobond issuance would complement the 1.5 billion dollars raised from the international market in March.

Read More

MAN wants FG to review procurement thresholds, preference for local goods

Worried about the lack of competitiveness of local manufacturing companies as a result of inadequate infrastructure, operating environment and low patronage, manufacturers have charged the Federal Government on the need to revisit its procurement thresholds and integrate them in the value-chain.

According to the Manufacturers Association of Nigeria (MAN), integrating local producers in the value-chain through policy frameworks will help revive the ailing sector as well as promote job creation efforts of the real sector.

Read More

FG to borrow $5.5bn via Eurobonds by year-end

The Federal Government is planning to sell as much as $5.5bn of Eurobonds in the next three months to fund capital projects and replace naira-denominated debt, the Debt Management Office has said.

Yields on existing bonds rose to the highest in two months. The new offer will bring the amount raised through Eurobond sales by the nation this year to more than $7bn.

Read More

Fidelity Bank Launches $500 Million Eurobond to Boost Operations

Fidelity Bank Plc thursday announced plans to launch up to $500 million Senior Unsecured Medium Notes (Eurobond) as well as a tender offer to purchase the banks’ outstanding $300 million 6.875 per cent Notes due May 9, 2018.

Fidelity Bank disclosed this in a notification to the Nigerian Stock Exchange (NSE). According to the bank, it intends to list the $500 million on the Irish Stock Exchange with the expectations that the notes will be traded on its regulated market.

Read More

World’s most expensive commercial jet opens, costs N15.3m per hour

The world’s most luxurious commercial jet ever has taken to the skies with a ticket rate that cost at least N15.3 million per hour.

The Crystal Skye – a privately-owned converted Boeing 777-200LR that accommodates just 88 passengers – boasts a spacious dining area, a mixologist and seats that convert into spacious beds for the super rich. Launched by United States-based Travel Company, Crystal Cruises, last month, tickets for a 14-day ‘hop-on hop-off’ ride on the palatial plane start at $50,000 (N15.3 million) per hour.

Read More

Be corporate governance watch dogs, shareholders urged

Shareholders have been urged to exercise their ownership functions in companies  they invest to encourage corporate governance. The Head, Investment Research & Corporate Strategy, Stanbic IBTC Pension Managers Limited, Mr. Charles Omoera, made the call at the 25th Annual General Meeting (AGM) of the Institute of Chartered Secretaries & Administrators of Nigeria (ICSAN).

The theme of the AGM, which held in Lagos, during the week, was “The Agency Dilemma: The impact of Shareholders Engagement”. Omoera said: “Institutional shareholders should serve as corporate governance watch dogs over the companies they invested in. Majority shareholders almost always get their way and their interests are not necessarily aligned with those of the minority shareholders.”

Read More

Afreximbank Beats Private Placement Target

The African Export-Import Bank (Afreximbank) said it is off to a successful listing of its depositary receipts (DRs) on the official market of the Stock Exchange of Mauritius (SEM) following the close of the private placement with subscription far in excess of the $100 million minimum target.

The first day of listing and trading of the Afreximbank DRs would be October 4, when 5,000 DRs must, by regulation, be made available for trading at a price of $4.30 per DR. The private placement closed on September 26.

Read More

‘We’ll consult Nigerians before selling 40% stake in Discos’

The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has said the Federal Government will consult Nigerians before going ahead to sell its 40 per cent stake in the electricity distribution companies. Fashola stated this on Thursday in Lagos at a policy dialogue on the power sector organised by the Lagos Chamber of Commerce and Industry.

The Federal Government had in November 2013 sold 60 per cent of its interest in the Discos to private investors during the privatisation of the successor generation and distribution companies carved out of the defunct Power Holding Company of Nigeria.

Read More

First Bank increases stake in FBN DRC Limited

First Bank of Nigeria Limited, the foremost Nigerian bank, announced the acquisition of the remaining shares in FBNBank DRC Limited (FBNBank DRC), making it FirstBank’s wholly owned Subsidiary.

FirstBank said this follows its initial investment in FBNBank DRC (formerly Banque Internationale de Credit) in 2011, when the Bank acquired a 75 per cent stake in FBNBank DRC. Following the acquisition, FBNBank DRC has continued to expand its product offerings, deepen its customer base, and is currently ranked amongst the top five banks serving the Democratic Republic of Congo (DRC), a country with a population of more than 82 million.

Read More

Nigeria’s Manufacturing Index Sustains Upswing in September

Nigeria’s Manufacturing Purchasing Managers’ Index (PMI) stood at 55.3 index points in September 2017, indicating expansion in the manufacturing sector for the sixth consecutive month. The PMI is an indicator of the economic health of the manufacturing sector. The PMI is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

According to the PMI report posted on the central bank’s website yesterday, 14 of the 16 sub-sectors reported growth in the review month in the following order: appliances & components; electrical equipment; chemical & pharmaceutical products; …

Read More

NASU threatens Fed Govt over minimum wage

The Federal Government may have more to contend with in the area of industrial unrest, if it fails to commence negotiations on the minimum wage and conclude it before the end of the year.

The threat, coming from the Non-Academic Staff Union of Educational and Associated Institutions (NASU), may not be an empty one, bearing in mind that the union, last week, suspended for a month its five-week nationwide strike, in conjunction with two other non-teaching staff unions in universities – the National Association of Academic Technologists (NAAT) and the Senior Staff Association of Nigerian Universities (SSANU).

Read More

Nigeria targets $30b non-oil revenue

To restructure the economy, the Federal Government is targeting at least $30 billion revenue from non-oil sources. This will be an increase of $25billion from the current $5 billion.

Nigerian Export Promotion Council (NEPC) Director – General Segun Awolowo announced this plan yesterday after the National Economic Council (NEC) meeting chaired by Vice – President Yemi Osinbajo at the Presidential Villa. With him at the briefing were Ebonyi State Governor Dave Umahi, Kwara State Governor Ahmed Abdulfattah and Kebbi State Governor Atiku Bagudu.

Read More

FAAC allocation increased by N169.9bn in August

The Federation Account Allocation Committee on Thursday shared the sum of N637.7bn among the three tiers of government. The amount, which is for statutory allocation for the month of August, represents an increase of N169.9bn over the N467.8bn, which the committee allocated in the month of July.

Addressing journalists shortly after the meeting, which was held at the headquarters of the Ministry of Finance in Abuja, the Accountant-General of the Federation, Ahmed Idris, said there was a significant increase in revenue for August.

Read More

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