Economic News Update

Business & Economic News Update: Monday 3rd July,2017

 

CBN issues N32bn debt to tighten liquidity

The Central Bank of Nigeria sold N31.94bn ($104.76m) in Treasury bills on Friday in a bid to tighten liquidity in the money market while overnight lending rate fell. Traders said the bank sold N31.52bn of 349-day Treasury bill at 18.59 per cent and N440m of 160-day Treasury bill at 17.98 per cent at an auction on Friday, Reutersreported.

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Nine million investors yet to join electronic-dividend system

About nine million investors are yet to sign on to the electronic dividend payment (e-dividend) system, where dividends will be paid directly by corporate registrars to the bank accounts of investors.

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), at the weekend confirmed that about 2.2 million investors have so far mandated their bank accounts for direct payment of dividends through the e-dividend platform.

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Again, Nigeria’s Manufacturing Index Expands in June

The Manufacturing Purchasing Managers’ Index (PMI) increased to 52.9 index points in June 2017, showing expansion in the manufacturing sector for the third consecutive month.

The Central Bank of Nigeria (CBN) revealed this in its PMI report for June 2017, obtained yesterday. The PMI is an indicator of the economic health of the manufacturing sector, and is based on five major indicators: new orders, inventory levels, production, supplier deliveries, and the employment environment.

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Investors push for interbank rate

Foreign investors are pushing for the adoption of the interbank rate as the only official exchange rate, The Nation has learnt. The interbank rate closed on Friday at N315.10/$1. It has remained the most stable exchange rate in the last six months.

The new demand by investors followed earlier calls by the International Monetary Fund (IMF) and stakeholders that the CBN unify exchange rates. The Executive Board of the IMF’s Article IV Consultation on Nigeria had in March, urged the authorities to remove restrictions and multiple currency practices.

Read More

FG searches for a predictable budget cycle

Two weeks ago, Acting President, Yemi Osinbajo, signed the 2017 budget into law, six months after it was presented to both chambers of the National Assembly by President Muhammadu Buhari.

The signing of the 2017 budget by Osinbajo is the first time the fiscal document would be coming into law in June in recent years.

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Forex reserves dip to $30.25b as CBN issues N32b debt

The Nigeria’s foreign exchange reserve stood at $30.25 billion by June 28, down by 0.36 per cent from a month ago, Central Bank of Nigeria (CBN) data showed last Friday. The reserves showed a 14.8 per cent rise from a year ago, when they stood at $26.34 billion. The  dollar reserves have risen slightly this year, thanks to the rise in global oil prices.

The Organisation of Petroleum Exporting Countries (OPEC) member country has added $4.2 billion to its reserves since the beginning of the year. Foreign reserves stood at $26.09 billion at the beginning of the year.

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Agusto Upgrades Access Bank’s Rating to Aa-

Foremost Nigerian rating agency, Agusto & Co. has raised Access Bank Plc’s rating from “A+” to “Aa-”, with stable outlook, in its recent rating review of the bank. The upgrade reflected Access Bank’s strong financial profile, resilient profitability levels, and solid capital position, a statement from the bank said at the weekend.

Agusto & Co. also recognised Access Bank as an institution of a very good financial condition and strong capacity to meet its obligations.

Read More

Ten insurance companies settle N32.7bn claims in one year

Despite Nigeria’s ravaging economic recession, 10 insurance companies have paid about N32.7 billion to insured Nigerians as compensation to succor them for mishaps they suffered in 2016. According to Daily Sun investigation, most of the indemnified were those that suffered fire incidents, vehicle owners who lost their cars to road accidents and theft as well as families of those who died in various inferno, among others.

The companies whose claims payment summed to the above amount included Universal Insurance Plc, Anchor Insurance Company Limited, Cornerstone Insurance Plc, Consolidated Hallmark Insurance Plc, AIICO Insurance Plc, Mutual Benefits Assurance Plc, LASACO Assurance Plc, Law Union and Rock Insurance, Wapic Insurance Plc and NICON Insurance Limited.

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N193.3m bonds traded in June, says NSE

The total bond activities for the Federal Government and corporate entities for the month of June this year closed at N193.399m, the Nigerian Stock Exchange said in its monthly report released on Friday.

The report showed that on the Federal Government’s side, the total bonds traded amounted to N24.648m, while the corporate bonds/debenture for the period driven by Dana Group Plc stood at N168.75m.

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Oniha takes over as DMO boss

The Acting President, Professor Yemi Osinbajo, has approved the appointment of Mrs Patience Oniha as the new Director General of Debt Management Office (DMO). Minister of Finance Mrs Kemi Adeosun announced the appointment in Abuja, at the weekend.

Oniha, who hails from Edo State, takes over from the former Director General, Dr Abraham Nwankwo, who retired after serving for two terms of five years each. The handover formalities took place in a brief ceremony at the office of DMO. She retired as a director in the agency and served in the Efficiency Unit of the Ministry of Finance before her recent appointment as DMO Chief Executive.

Read More

Report: Nigeria’s Shadow Economy to Shrink by 2025

Nigeria is on course to reduce the size of its shadow economy by 2025, according to a new study by the Association of Chartered Certified Accountants (ACCA).

A shadow economy is best described as the production of and trade in legal goods and services that are deliberately and often illegally concealed from public authorities, for example, black market transactions and undeclared work.

Read More

Diesel price drops to N155/litre, says NNPC

The price of Automotive Gas Oil, also known as diesel, has dropped further from between N175 and N200 per litre as of June 18, 2017 to between N155 and N160 per litre in many filling stations across the country, the Nigerian National Petroleum Corporation has said.

Early last month, the NNPC announced that the cost of the commodity had dropped by about 42 per cent within a period of six months, and on Sunday, it stated that the price witnessed another round of reduction as of last week.

Read More

Honeywell Flour Recovers from Loss,   Posts N5.5bn Profit

Honeywell Flour Mills Plc   has recorded a profit before tax of N5.5 billion for the year ended March 31, 2017, compared with a loss of N2.8 billion in 2016.

According to the audited results,   the company posted revenue of N53.2 billion, up by about five from N50.9 billion recorded a year ago. This increase in turnover was achieved despite the general squeeze on consumer spend due to macroeconomic headwinds experienced nationwide in 2016. The company explained that it   implemented forward looking strategies aimed at input cost management and efficiencies in the overall supply chain management process.

Read More

Ahead of public listing, MTN woos institutional investors

The planned public listing of the shares of MTN Nigeria on the Nigerian Stock Exchange offers both institutional and individual investors the opportunity to get a slice of the telecommunications firm that has 62 million subscribers, the company has said.

The Deputy Head, Mergers and Acquisitions, MTN Group, Kholekile Ndamese, who led a team from Nigeria and South Africa, said this when they met with Minister of Science and Technology, Dr. Ogbonnaya Onu, in Abuja on Friday.

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Etisalat Nigeria Crisis: ALTON Rules Out Bailout Option 

As the financial management crisis rocking Etisalat Nigeria deepens, following the resignation of its Board Chairman, Mr. Hekeem Bello-Osagie at the weekend, the Association of Licensed Telecommunications Operators of Nigeria (ALTON), has ruled out the bailout option, which many industry stakeholders had suggested as the best option to salvage the telecoms company.

Read More

Banks suffer fraud cases worth N16.5bn in three years

The economic recession currently rocking the country has increased the volume of fraud cases in the banking industry, with the attendant loss of money, IFEANYI ONUBA writes

The banking sector recorded 31,736 fraud cases involving the sum of N16.5bn between January 2014 and December 2016, figures obtained by our correspondent from the Central Bank of Nigeria have revealed.

Read More

Minimum wage: There’s limit to our patience, says Wabba

The Nigeria Labour Congress (NLC) President, Comrade Ayuba Wabba, said the  understanding being exhibited by  workers on the minimum wage issue should not be taken for granted.

In an interview with The Nation, he said: “There’s limit to the patience and understanding the workers can have on the issue of minimum wage,” warning that labour might be forced to react if the issue was not urgently addressed.

Read More

FIRS proposes new tax regime for domestic airlines

The Federal Inland Revenue Service has proposed a flexible tax payment method to enable domestic airlines to remain in operation as well as meet their Value Added Tax remittance obligations.

The Chairman, FIRS, Mr. Babatunde Fowler, made the proposal when a delegation of the Airline Operators of Nigeria and the International Air Transport Association paid him a visit.

Read More

Thumbs down for passage of PIGB

The last may not have been heard about the Petroleum Industry Governance Bill (PIGB) passed into law by the Senate. Although the development has been generally hailed as a milestone achievement, some labour leaders, stakeholders and experts have picked holes in the piecemeal approach in passing the bill and the non-

incorporation of host communities’ demands. Some of them who spoke with The Nation argue this could endanger the peace in the Niger Delta.

Read More

Comment here

Economic News Update

Business & Economic News Update: Monday 3rd July,2017

 

CBN issues N32bn debt to tighten liquidity

The Central Bank of Nigeria sold N31.94bn ($104.76m) in Treasury bills on Friday in a bid to tighten liquidity in the money market while overnight lending rate fell. Traders said the bank sold N31.52bn of 349-day Treasury bill at 18.59 per cent and N440m of 160-day Treasury bill at 17.98 per cent at an auction on Friday, Reutersreported.

Read More

Nine million investors yet to join electronic-dividend system

About nine million investors are yet to sign on to the electronic dividend payment (e-dividend) system, where dividends will be paid directly by corporate registrars to the bank accounts of investors.

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), at the weekend confirmed that about 2.2 million investors have so far mandated their bank accounts for direct payment of dividends through the e-dividend platform.

Read More

Again, Nigeria’s Manufacturing Index Expands in June

The Manufacturing Purchasing Managers’ Index (PMI) increased to 52.9 index points in June 2017, showing expansion in the manufacturing sector for the third consecutive month.

The Central Bank of Nigeria (CBN) revealed this in its PMI report for June 2017, obtained yesterday. The PMI is an indicator of the economic health of the manufacturing sector, and is based on five major indicators: new orders, inventory levels, production, supplier deliveries, and the employment environment.

Read More

Investors push for interbank rate

Foreign investors are pushing for the adoption of the interbank rate as the only official exchange rate, The Nation has learnt. The interbank rate closed on Friday at N315.10/$1. It has remained the most stable exchange rate in the last six months.

The new demand by investors followed earlier calls by the International Monetary Fund (IMF) and stakeholders that the CBN unify exchange rates. The Executive Board of the IMF’s Article IV Consultation on Nigeria had in March, urged the authorities to remove restrictions and multiple currency practices.

Read More

FG searches for a predictable budget cycle

Two weeks ago, Acting President, Yemi Osinbajo, signed the 2017 budget into law, six months after it was presented to both chambers of the National Assembly by President Muhammadu Buhari.

The signing of the 2017 budget by Osinbajo is the first time the fiscal document would be coming into law in June in recent years.

Read More

Forex reserves dip to $30.25b as CBN issues N32b debt

The Nigeria’s foreign exchange reserve stood at $30.25 billion by June 28, down by 0.36 per cent from a month ago, Central Bank of Nigeria (CBN) data showed last Friday. The reserves showed a 14.8 per cent rise from a year ago, when they stood at $26.34 billion. The  dollar reserves have risen slightly this year, thanks to the rise in global oil prices.

The Organisation of Petroleum Exporting Countries (OPEC) member country has added $4.2 billion to its reserves since the beginning of the year. Foreign reserves stood at $26.09 billion at the beginning of the year.

Read More

Agusto Upgrades Access Bank’s Rating to Aa-

Foremost Nigerian rating agency, Agusto & Co. has raised Access Bank Plc’s rating from “A+” to “Aa-”, with stable outlook, in its recent rating review of the bank. The upgrade reflected Access Bank’s strong financial profile, resilient profitability levels, and solid capital position, a statement from the bank said at the weekend.

Agusto & Co. also recognised Access Bank as an institution of a very good financial condition and strong capacity to meet its obligations.

Read More

Ten insurance companies settle N32.7bn claims in one year

Despite Nigeria’s ravaging economic recession, 10 insurance companies have paid about N32.7 billion to insured Nigerians as compensation to succor them for mishaps they suffered in 2016. According to Daily Sun investigation, most of the indemnified were those that suffered fire incidents, vehicle owners who lost their cars to road accidents and theft as well as families of those who died in various inferno, among others.

The companies whose claims payment summed to the above amount included Universal Insurance Plc, Anchor Insurance Company Limited, Cornerstone Insurance Plc, Consolidated Hallmark Insurance Plc, AIICO Insurance Plc, Mutual Benefits Assurance Plc, LASACO Assurance Plc, Law Union and Rock Insurance, Wapic Insurance Plc and NICON Insurance Limited.

Read More

N193.3m bonds traded in June, says NSE

The total bond activities for the Federal Government and corporate entities for the month of June this year closed at N193.399m, the Nigerian Stock Exchange said in its monthly report released on Friday.

The report showed that on the Federal Government’s side, the total bonds traded amounted to N24.648m, while the corporate bonds/debenture for the period driven by Dana Group Plc stood at N168.75m.

Read More

Oniha takes over as DMO boss

The Acting President, Professor Yemi Osinbajo, has approved the appointment of Mrs Patience Oniha as the new Director General of Debt Management Office (DMO). Minister of Finance Mrs Kemi Adeosun announced the appointment in Abuja, at the weekend.

Oniha, who hails from Edo State, takes over from the former Director General, Dr Abraham Nwankwo, who retired after serving for two terms of five years each. The handover formalities took place in a brief ceremony at the office of DMO. She retired as a director in the agency and served in the Efficiency Unit of the Ministry of Finance before her recent appointment as DMO Chief Executive.

Read More

Report: Nigeria’s Shadow Economy to Shrink by 2025

Nigeria is on course to reduce the size of its shadow economy by 2025, according to a new study by the Association of Chartered Certified Accountants (ACCA).

A shadow economy is best described as the production of and trade in legal goods and services that are deliberately and often illegally concealed from public authorities, for example, black market transactions and undeclared work.

Read More

Diesel price drops to N155/litre, says NNPC

The price of Automotive Gas Oil, also known as diesel, has dropped further from between N175 and N200 per litre as of June 18, 2017 to between N155 and N160 per litre in many filling stations across the country, the Nigerian National Petroleum Corporation has said.

Early last month, the NNPC announced that the cost of the commodity had dropped by about 42 per cent within a period of six months, and on Sunday, it stated that the price witnessed another round of reduction as of last week.

Read More

Honeywell Flour Recovers from Loss,   Posts N5.5bn Profit

Honeywell Flour Mills Plc   has recorded a profit before tax of N5.5 billion for the year ended March 31, 2017, compared with a loss of N2.8 billion in 2016.

According to the audited results,   the company posted revenue of N53.2 billion, up by about five from N50.9 billion recorded a year ago. This increase in turnover was achieved despite the general squeeze on consumer spend due to macroeconomic headwinds experienced nationwide in 2016. The company explained that it   implemented forward looking strategies aimed at input cost management and efficiencies in the overall supply chain management process.

Read More

Ahead of public listing, MTN woos institutional investors

The planned public listing of the shares of MTN Nigeria on the Nigerian Stock Exchange offers both institutional and individual investors the opportunity to get a slice of the telecommunications firm that has 62 million subscribers, the company has said.

The Deputy Head, Mergers and Acquisitions, MTN Group, Kholekile Ndamese, who led a team from Nigeria and South Africa, said this when they met with Minister of Science and Technology, Dr. Ogbonnaya Onu, in Abuja on Friday.

Read More

Etisalat Nigeria Crisis: ALTON Rules Out Bailout Option 

As the financial management crisis rocking Etisalat Nigeria deepens, following the resignation of its Board Chairman, Mr. Hekeem Bello-Osagie at the weekend, the Association of Licensed Telecommunications Operators of Nigeria (ALTON), has ruled out the bailout option, which many industry stakeholders had suggested as the best option to salvage the telecoms company.

Read More

Banks suffer fraud cases worth N16.5bn in three years

The economic recession currently rocking the country has increased the volume of fraud cases in the banking industry, with the attendant loss of money, IFEANYI ONUBA writes

The banking sector recorded 31,736 fraud cases involving the sum of N16.5bn between January 2014 and December 2016, figures obtained by our correspondent from the Central Bank of Nigeria have revealed.

Read More

Minimum wage: There’s limit to our patience, says Wabba

The Nigeria Labour Congress (NLC) President, Comrade Ayuba Wabba, said the  understanding being exhibited by  workers on the minimum wage issue should not be taken for granted.

In an interview with The Nation, he said: “There’s limit to the patience and understanding the workers can have on the issue of minimum wage,” warning that labour might be forced to react if the issue was not urgently addressed.

Read More

FIRS proposes new tax regime for domestic airlines

The Federal Inland Revenue Service has proposed a flexible tax payment method to enable domestic airlines to remain in operation as well as meet their Value Added Tax remittance obligations.

The Chairman, FIRS, Mr. Babatunde Fowler, made the proposal when a delegation of the Airline Operators of Nigeria and the International Air Transport Association paid him a visit.

Read More

Thumbs down for passage of PIGB

The last may not have been heard about the Petroleum Industry Governance Bill (PIGB) passed into law by the Senate. Although the development has been generally hailed as a milestone achievement, some labour leaders, stakeholders and experts have picked holes in the piecemeal approach in passing the bill and the non-

incorporation of host communities’ demands. Some of them who spoke with The Nation argue this could endanger the peace in the Niger Delta.

Read More

Comment here