Economic News Update

Business & Economic News Update: Friday, 3rd November, 2017

 

Investment inflow into Nigeria, others to hit $75bn – Osinbajo

Vice-President Yemi Osinbajo on Thursday described the continent of Africa as a land of immense opportunities, noting that Foreign Direct Investment inflow into the region was expected to hit $75.5bn by the end of this year.

Osinbajo stated this in Abuja at the opening session of a two-day high level policy and private sector forum on trade and investment facilitation for development. The event was hosted by Nigeria in collaboration with the ECOWAS Commission and World Trade Organisation, among others.

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Abuja airport N61.2b terminal opens February 2018

All things being equal, the Nnamdi Azikiwe International Airport’s (NAIA) new terminal in Abuja will open for operations February next year. The terminal, built at the estimated cost of N61.2 billion ($200 million) is a partnership between the Nigerian government and the China Civil Engineering Construction Corporation (CCECC).

The new terminal, according to state officials, is to offer befitting service to airport users that are visiting the Federal Capital and accommodate new traffic on account of the second runway already penciled for 2018.

Read More

Govt to restrict physical movement of dollars, others

The Federal Government is set to begin strict border controls on the physical movement of dollars and other foreign currencies. This is expected to mitigate foreign exchange scarcity and check money laundering activities, it was learnt. A draft law to ease dollar shortage by restricting movement of hard currencies in and out of Nigeria has passed its second reading at the National Assembly.

The draft law passed the second reading on Wednesday. It will ban individuals and companies from exporting more than $50,000 in cash without written approval of the Central Bank of Nigeria, with contraventions punishable by up to two years in prison.

Read More

Lafarge Africa Applies to Raise N132bn through Rights Issue

Lafarge Africa Plc has formally applied to the Nigerian Stock Exchange (NSE) to raise N132 billion fresh capital from existing investors through a Rights Issue. Shareholders of the cement manufacturing firm had in June approved the proposal by the company to raise about N140 billion.

However, the company has formally applied to raise about N132 billion through the issuance of 3,097,653,023 ordinary shares of 50 kobo each at N42.50 per share on the basis of five new ordinary share for every nine ordinary share s held as at November 1, 2017. Shareholders of the company had given the approval for the rights issue with a charge to the directors that the company would remain listed on the NSE.

Read More

Bank of England hikes interest rate to 0.5% for first time in 10 years

The Bank of England raised its main interest rate for the first time since 2007, before the global financial crisis, it announced Thursday as it tackles Brexit-fuelled inflation. For millions of Britons, it’s the first rate hike in their adult lives.

Policymakers voted 7-2 to tighten borrowing costs to 0.50 percent from a BoE record low of 0.25 percent as a weak pound caused by Brexit uncertainty has hiked the cost of imports into Britain and in turn sent the country’s inflation rising far above the central bank’s target.

Read More

Lagos, Delta, Rivers Lead in Sub-National Competitive Index

The National Competitiveness Council of Nigeria (NCCN) has ranked Lagos state top among the 36 states and the Federal Capital Territory, in its first ever Sub-National Index. Lagos was closely followed by Delta, Rivers, Niger, Enugu, Edo, Jigawa and Abia states, in that order.

The index covered four key areas which included human capital, infrastructure, economy and institutions. The NCCN’s National Competitiveness Report that was launched in Lagos yesterday, also ranked Borno and Gombe, 36th and 37th respectively.

Read More

China disburses $30bn industrialisation fund to Nigeria, others

The Peoples Republic of China has disbursed over $30bn in funding support to Nigeria and other African countries to drive its cooperation plans on industrialisation and agricultural modernisation.

The Director, Centre for China Studies, Mr. Charles Onunaiju, said the fund was part of the $60bn pledged by China to African countries during the Forum of China-Africa Cooperation Summit, which held in Johannesburg, South Africa in December 2015. He stated this at a seminar on Thursday in Abuja with the theme: ‘Nigeria-China relations and the prospects to realise industrial and production capacity cooperation’.

Read More

NACCIMA Calls for Caution on Rising Debt Profile, Seeks Prompt Implementation of 2017 Budget

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has called for caution on Nigeria’s rising debt profile. It also urged the authorities to ensure prompt and diligent implementation of the 2017 budget as part of efforts in ensuring that the economy stays vibrant and the investor confidence sustained.

National President of association, Iyalode Lawson, who made the call in Lagos at a meeting with corporate members , said the body expects that based on the Executive Order passed in May by the Vice President, Prof. Yemi Osinbajo, to promote efficiency in the nation’s budget processes, there would be noticeable improvement and swiftness in the budget’s compilation process.

Read More

CBN warns Nigerians over fake website

The Central Bank of Nigeria has said there is a scam being perpetrated by some fraudulent persons whereby unsuspecting members of the public are diverted to a fake website purported to belong to the bank.

According to a statement by the CBN, there is the danger of the fraudsters extorting money from victims based on false claims that payments made are to either guarantee or secure loans from the various intervention funds of the bank.

Read More

Senate to CEOs: ‘honour our invitation or we arrest you’

The National Assembly (NA) has reiterated its stand to  arrest any Chief Executive Officer (CEO), who fails repeatedly to honour summons by its committee, describing the act as an affront on the National Assembly.

Chairman, Senate Committee on Ethics, Privileges and Public Petitions, Samuel Anyanwu, reiterated this position in a chat with newsmen on the sideline of the just-concluded retreat of the National Assembly Committees on Ethics, Privileges and Public Petitions in Lagos. Senator Anyanwu said:“I advise that each time you are invited, you come, if not the legislators can frustrate you.

Read More

NNPC takes crude oil search to Benue

After it commenced the search for crude oil at the Nasarawa State end of the Benue Trough last week, the Nigerian National Petroleum Corporation on Thursday announced that it had started mobilising for oil exploration in the Benue State area of the trough.

The Group Managing Director, NNPC, Maikanti Baru, led a delegation from the corporation to the Governor of Benue State, Samuel Ortom, and disclosed that all was set for seismic data acquisition work to commence in the state.

Read More

FG to save N91bn annually from $3bn debt – Adeosun

The Minister of Finance, Mrs. Kemi Adeosun, on Thursday said the decision of the Federal Government to refinance its $3bn worth of short-term Treasury Bills into longer tenured international debt was expected to save the country N91.65bn per annum.

Adeosun said this in a statement issued by her Media Adviser Mr. Oluyinka Akintunde. The Finance minister expressed confidence that the Federal Government’s revenue and debt management strategy would mitigate the country’s debt service risk and fast-track her development.

Read More

Reps protest as Buhari seeks to present 2018 budget

Members of the House of Representatives on Thursday protested as President Muhammadu Buhari requested their permission to present the estimates of the 2018 budget to a joint session of the National Assembly.

The President asked to be allowed to lay the estimates on Tuesday, November 7. His request was contained in a letter that the Speaker, Mr. Yakubu Dogara, read to members during plenary in Abuja. At the Senate, the President of the Senate, Bukola Saraki, read the letter to senators.

Read More

Comment here

Economic News Update

Business & Economic News Update: Friday, 3rd November, 2017

 

Investment inflow into Nigeria, others to hit $75bn – Osinbajo

Vice-President Yemi Osinbajo on Thursday described the continent of Africa as a land of immense opportunities, noting that Foreign Direct Investment inflow into the region was expected to hit $75.5bn by the end of this year.

Osinbajo stated this in Abuja at the opening session of a two-day high level policy and private sector forum on trade and investment facilitation for development. The event was hosted by Nigeria in collaboration with the ECOWAS Commission and World Trade Organisation, among others.

Read More

Abuja airport N61.2b terminal opens February 2018

All things being equal, the Nnamdi Azikiwe International Airport’s (NAIA) new terminal in Abuja will open for operations February next year. The terminal, built at the estimated cost of N61.2 billion ($200 million) is a partnership between the Nigerian government and the China Civil Engineering Construction Corporation (CCECC).

The new terminal, according to state officials, is to offer befitting service to airport users that are visiting the Federal Capital and accommodate new traffic on account of the second runway already penciled for 2018.

Read More

Govt to restrict physical movement of dollars, others

The Federal Government is set to begin strict border controls on the physical movement of dollars and other foreign currencies. This is expected to mitigate foreign exchange scarcity and check money laundering activities, it was learnt. A draft law to ease dollar shortage by restricting movement of hard currencies in and out of Nigeria has passed its second reading at the National Assembly.

The draft law passed the second reading on Wednesday. It will ban individuals and companies from exporting more than $50,000 in cash without written approval of the Central Bank of Nigeria, with contraventions punishable by up to two years in prison.

Read More

Lafarge Africa Applies to Raise N132bn through Rights Issue

Lafarge Africa Plc has formally applied to the Nigerian Stock Exchange (NSE) to raise N132 billion fresh capital from existing investors through a Rights Issue. Shareholders of the cement manufacturing firm had in June approved the proposal by the company to raise about N140 billion.

However, the company has formally applied to raise about N132 billion through the issuance of 3,097,653,023 ordinary shares of 50 kobo each at N42.50 per share on the basis of five new ordinary share for every nine ordinary share s held as at November 1, 2017. Shareholders of the company had given the approval for the rights issue with a charge to the directors that the company would remain listed on the NSE.

Read More

Bank of England hikes interest rate to 0.5% for first time in 10 years

The Bank of England raised its main interest rate for the first time since 2007, before the global financial crisis, it announced Thursday as it tackles Brexit-fuelled inflation. For millions of Britons, it’s the first rate hike in their adult lives.

Policymakers voted 7-2 to tighten borrowing costs to 0.50 percent from a BoE record low of 0.25 percent as a weak pound caused by Brexit uncertainty has hiked the cost of imports into Britain and in turn sent the country’s inflation rising far above the central bank’s target.

Read More

Lagos, Delta, Rivers Lead in Sub-National Competitive Index

The National Competitiveness Council of Nigeria (NCCN) has ranked Lagos state top among the 36 states and the Federal Capital Territory, in its first ever Sub-National Index. Lagos was closely followed by Delta, Rivers, Niger, Enugu, Edo, Jigawa and Abia states, in that order.

The index covered four key areas which included human capital, infrastructure, economy and institutions. The NCCN’s National Competitiveness Report that was launched in Lagos yesterday, also ranked Borno and Gombe, 36th and 37th respectively.

Read More

China disburses $30bn industrialisation fund to Nigeria, others

The Peoples Republic of China has disbursed over $30bn in funding support to Nigeria and other African countries to drive its cooperation plans on industrialisation and agricultural modernisation.

The Director, Centre for China Studies, Mr. Charles Onunaiju, said the fund was part of the $60bn pledged by China to African countries during the Forum of China-Africa Cooperation Summit, which held in Johannesburg, South Africa in December 2015. He stated this at a seminar on Thursday in Abuja with the theme: ‘Nigeria-China relations and the prospects to realise industrial and production capacity cooperation’.

Read More

NACCIMA Calls for Caution on Rising Debt Profile, Seeks Prompt Implementation of 2017 Budget

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has called for caution on Nigeria’s rising debt profile. It also urged the authorities to ensure prompt and diligent implementation of the 2017 budget as part of efforts in ensuring that the economy stays vibrant and the investor confidence sustained.

National President of association, Iyalode Lawson, who made the call in Lagos at a meeting with corporate members , said the body expects that based on the Executive Order passed in May by the Vice President, Prof. Yemi Osinbajo, to promote efficiency in the nation’s budget processes, there would be noticeable improvement and swiftness in the budget’s compilation process.

Read More

CBN warns Nigerians over fake website

The Central Bank of Nigeria has said there is a scam being perpetrated by some fraudulent persons whereby unsuspecting members of the public are diverted to a fake website purported to belong to the bank.

According to a statement by the CBN, there is the danger of the fraudsters extorting money from victims based on false claims that payments made are to either guarantee or secure loans from the various intervention funds of the bank.

Read More

Senate to CEOs: ‘honour our invitation or we arrest you’

The National Assembly (NA) has reiterated its stand to  arrest any Chief Executive Officer (CEO), who fails repeatedly to honour summons by its committee, describing the act as an affront on the National Assembly.

Chairman, Senate Committee on Ethics, Privileges and Public Petitions, Samuel Anyanwu, reiterated this position in a chat with newsmen on the sideline of the just-concluded retreat of the National Assembly Committees on Ethics, Privileges and Public Petitions in Lagos. Senator Anyanwu said:“I advise that each time you are invited, you come, if not the legislators can frustrate you.

Read More

NNPC takes crude oil search to Benue

After it commenced the search for crude oil at the Nasarawa State end of the Benue Trough last week, the Nigerian National Petroleum Corporation on Thursday announced that it had started mobilising for oil exploration in the Benue State area of the trough.

The Group Managing Director, NNPC, Maikanti Baru, led a delegation from the corporation to the Governor of Benue State, Samuel Ortom, and disclosed that all was set for seismic data acquisition work to commence in the state.

Read More

FG to save N91bn annually from $3bn debt – Adeosun

The Minister of Finance, Mrs. Kemi Adeosun, on Thursday said the decision of the Federal Government to refinance its $3bn worth of short-term Treasury Bills into longer tenured international debt was expected to save the country N91.65bn per annum.

Adeosun said this in a statement issued by her Media Adviser Mr. Oluyinka Akintunde. The Finance minister expressed confidence that the Federal Government’s revenue and debt management strategy would mitigate the country’s debt service risk and fast-track her development.

Read More

Reps protest as Buhari seeks to present 2018 budget

Members of the House of Representatives on Thursday protested as President Muhammadu Buhari requested their permission to present the estimates of the 2018 budget to a joint session of the National Assembly.

The President asked to be allowed to lay the estimates on Tuesday, November 7. His request was contained in a letter that the Speaker, Mr. Yakubu Dogara, read to members during plenary in Abuja. At the Senate, the President of the Senate, Bukola Saraki, read the letter to senators.

Read More

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