World Bank disagrees with Adeosun on borrowing … says cost of debts not sustainable
The World Bank has disagreed with the Minister of Finance, Mrs. Kemi Adeosun, on the need for the Federal Government to borrow more in order to develop the nation’s infrastructure and stimulate the economy.
The World Bank spoke through its Senior Economist, Gloria Joseph-Raji, on Monday in Abuja, saying that the cost of borrowing or paying interest on Nigeria’s debt was not sustainable as revenues to make such payment had dried up. She spoke with our correspondent on the sidelines of the lunch of Africa Pulse, a biannual report on Africa.
CBN Maintains Market Liquidity with $195 Million
The Central Bank of Nigeria (CBN) on Monday injected a fresh $195 million into the interbank foreign exchange market, as part of its continued bid to maintain liquidity in the market.
Figures released by the bank show that it offered a total sum of $100 million to the wholesale segment, while the Small and Medium Enterprises (SMEs) segment received the sum of $50 million. The invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance (BTA), among others, received $45 million.
UBA nine-month profit soars by 33.2%
The United Bank for Africa Plc has reported a 33.2 per cent growth in its profit before tax for the unaudited third quarter financial results ended September 30, 2017. The pan-African financial institution’s result showed remarkable performance across key financial indicators. Its PBT appreciated to N78.3bn from N58.8bn recorded in the same period of 2016.
“This impressive performance defies the slow economic recovery in Nigeria as well as some African markets, where the bank operates,” the bank stressed in a statement on Monday. UBA’s gross earnings grew by 26 per cent to N333.9bn, as against N265.5bn reported in September 2016. The result, the bank said, was driven by the strong performance of its recurring core revenue lines, thus reflecting the increasing success of the bank’s enhanced customer engagement.
Eurobond: Fidelity Bank records largest new issue, liability offering
Fidelity Bank Plc, on October 11, 2017, priced a successful $400m five-year Eurobond with a 10.50 per cent coupon in what is the largest combined new issue and liability management offering ever by a Nigerian issuer.
Citigroup Incorporated, Renaissance Capital and Standard Bank Group Limited managed the deal, which included an any-and-all cash tender offer for the early redemption of its $300m 6.875 per cent notes due May 9, 2018.
Nigeria, South Africa vie for Africa’a biggest economy
Nigeria and South Africa, which emerged from recession in the second quarter of this year, are vying for the title of Africa’s biggest economy. Deciding which African economy will be the biggest at the end of this year will depend on which exchange rate used, Bloomberg showed on a chart.
While the International Monetary Fund reckons Nigeria will come out on top with $395bn of output, it uses an average official exchange rate of N304 per dollar, which few companies or individuals get access to.
Nigeria continues power, infrastructure talks with global bodies
The quest for adequate and sustainable investments to boost the nation’s power sector and other infrastructure projects continued yesterday, with a bilateral meeting and talks with multilateral institutions by the Federal Government.
The leader of the Nigerian delegation to the ongoing World Bank Group/International Monetary Fund (IMF) meetings in Washington DC, Mrs. Kemi Adeosun, presented the country’s power and infrastructure projects, among others, to representatives of the Japan International Cooperation Agency (JICA).
NLNG demands $315m judgement debt from NIMASA
The Nigeria LNG Limited, on Monday, said it had formally issued a demand notice for $315,598,823.29 judgment debt to the Nigerian Maritime Administration and Safety Agency.
The NLNG said in a statement that the sum represented the payments it made under protest to the agency since 2013, as well as direct and shipping losses it incurred due to the initial two-day blockade of the Bonny Channel by NIMASA in May 2013.
African leaders, Dangote move to change continent’s economic narrative
African business and political leaders have expressed optimism of using the Afrochampions Initiative to change the continent’s socio-economic narrative through a consensus on seven key issues ranging from regional and continental integration to global representation.
Designed to promote economic development in Africa, the initiative among other issues, seeks to encourage the emergence of home-grown pan-African companies that will help to transform and integrate the continent through cross-border investments as well as reduce poverty rate.
ICYMI: We must borrow more to deliver infrastructure —Adeosun
The Minister of Finance, Mrs. Kemi Adeosun, on Sunday, said the nation must borrow more in the short term to deliver critical infrastructural projects such as roads, rail and power. According to her, Nigeria currently has one of the lowest debt-to-Gross Domestic Product figures in the world and the administration has no plan to go into massive borrowing that it cannot sustain.
Adeosun spoke at a press conference marking the conclusion of the 2017 World Bank/International Monetary Fund Annual Meetings in Washington DC, United States She said, “Nigeria’s debt-to-Gross Domestic Product ratio is one of the lowest actually. It is about 19 per cent. Most advanced countries have over 100 per cent. I am not saying we want to move to 100 per cent. But I’m saying we need to tolerate a little bit more debt in the short term to deliver roads, rail, and power.
‘Pension fund assets account for six per cent of GDP’
The National Bureau of Statistics has disclosed that the total asset under the management of the Nigeria Pension Fund (NPF) as at December 31, 2016 accounted for six per cent of the country’s Gross Domestic Product (GDP).
In a statement released recently in Abuja, the NBS noted that the total asset as at the period under review represents six per cent of the GDP as against 5.57 per cent in 2015, adding that 98.56 per cent of the funds were invested in domestic market while the remaining 1.44 per cent were invested in foreign market.
We source 75% of raw materials locally – Guinness MD
The Managing Director/Chief Executive Officer, Guinness Nigeria Plc, Peter Ndegwa, spoke to STANLEY OPARA on the growth of the company amid the current economic realities in Nigeria Guinness Nigeria recorded 131 per cent increase in operating profit year-on-year for 2017 financial year. How was the company able to achieve this despite the state of the economy?
Guinness Nigeria’s financial results were driven by a relentless focus on executing our strategy and keeping costs down. Despite the challenging economic conditions, we have remained focused on executing our company’s total beverage strategy, which gained further traction with strong growth in our international premium spirits portfolio following our first full-year of distribution.
IST to priotise investors’ interests
The Chairman of Investment and Securities Tribunal, Mr. Isaiah Idoko-Akoh, has assured investors and other stakeholders in the nation’s securities market of speedy resolutions of disputes and giving priority investors’ interests.
This position was contained in a statement released by the IST on Monday. The IST was initially established under section 224 of the Investments and Securities Act 1999 which has been repealed and replaced by the ISA 2007.