Economic News Update

Business & Economic News Update: Tuesday, 24th October, 2017

 

CBN Pumps $195m into Forex Market

The Central Bank of Nigeria (CBN) on Monday injected the sum of $195 million into the interbank foreign exchange (forex) market. Figures obtained from the Bank indicated that the central bank offered $100 million to authorised dealers in the wholesale segment of the market, while the small and medium scale enterprises (SMEs) segment received the sum of $50 million.

Those requiring foreign exchange for invisibles such as tuition fees, medical payments and basic travel allowance (BTA), among others, were allocated the sum of $45 million. The central bank’s acting Director in charge of Corporate Communications, Mr. Isaac Okorafor, confirmed the figures, saying that the Bank was confident that the level of transparency it had entrenched in the market would help the naira to sustain its steady run against the dollar and other major currencies around the world.

Read More

Lafarge to list N25b commercial paper, floats N131.6b rights issue

Lafarge Africa Plc has concluded plans to issue N25 billion in commercial papers from a N60 billion programme this month.The company made this known when it released its financial results for the third quarter and nine-month period ended September 30, 2017. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities.

The company explained that the net proceeds of the commercial papers would support short-term working capital needs, after which it will be listed on the FMDQ OTC Exchange. In addition, the already approved N131.65 rights issue will hold in November at N42.50 per share.

Read More

Banks send messages to customers without BVN

Deposit Money Banks have started sending text messages and electronic mails to customers without Bank Verification Number, asking them to come and complete the biometric registration process. Some bank officials told our correspondent on Monday that majority of customers affected by the development were mostly those with names mismatch.

Customers, who have different names order across banks were mostly affected, it was learnt. Our correspondent observed on Monday that there were no queues in banking halls despite the court ruling directing the Central Bank of Nigeria and 19 Deposit Money Banks to freeze the bank accounts of customers without the BVN.

Read More

Transcorp Recovers from Loss, Records Profit After Tax of N8.9bn

Transnational Corporation of Nigeria Plc (Transcorp), Nigeria’s foremost investment conglomerate has announced financial results for the nine months ended September 30, 2017, showing a profit after tax (PAT) of N8.9 billion compared with a loss in the corresponding period of 2016. The results showed revenue of N56.76 billion, up by 35 per cent from N41.92 billion in 2016, while gross profit improved from N19.84 billion in 2016 to N25.62 billion, indicating a growth of 45 per cent. Similarly, operating profit grew from N11.58 billion in 2016 to N16.81 billion.

Read More

Unity Bank grows capital base to N80b

Unity Bank Plc’s capital base has hit N80 billion, up from N31 billion in 2014, its former Chairman, Board of Directors, Thomas Etuh, has said. Etuh, the immediate past board chairman of the bank said in a post-retirement interview with News Agency of Nigeria (NAN) that the growth was recorded under his watch, between 2014 and 2017.

He retired as the bank’s board chairman a fortnight ago and explained that the lender was able to achieve the feat because of its “agric business” banking. “You know Unity Bank is number one in agriculture, in terms of agric lending to small holder farmers; we also have a product for youths because youths own this generation. I came into Unity Bank in time of recapitalisation under Sanusi  Lamido Sanusi as the Central Bank of Nigeria Governor and we recapitalised the bank to get it to a national bank where it is today.

Read More

Elumelu outlines roles of MFBs, SMEs in economic growth

The Chairman, Heirs Holding, Mr. Tony Elumelu, says microfinance banks and small businesses are crucial to economic growth He said efforts by the MFBs including Lift Above Poverty Organisation to enhance job creation through lending to small businesses were enhancing economic growth.

He therefore said necessary support in terms of ease of doing business, consistent policy, friendly business climate, among others, must be given to the micro lending sub-sector in order to enhance its growth.

Read More

Bank harps on capacity building for growth of small businesses

As part of effort at promoting growth of Small and Medium Enterprises, Stanbic IBTC Bank has insisted that the importance of capacity building cannot be over emphasized. To this end, the bank organised a Capacity Building Series for entrepreneurs in Lagos recently where business managers were taught importance of keeping business records, understanding the implication of the activities in growing balance sheets, developing keen eyes on managing cash flows among others.

The facilitators also explained how to determine required funds to enable business owners manage their cash flow, determine the required funds needed to enable them meet their growth strategy and understand the valuation of businesses and how to manage resources.

Read More

FG Raises N6.69bn through Savings Bond

In pursuit of the federal government’s objective of financial inclusion by attracting retail investors into the bond market, the government on Monday disclosed that it has raised a total of N6.69 billion through the monthly issuance of the Federal Government of Nigeria Savings Bond (FGNSB) since March this year. The amount raised since inception, according to a report, grew to N6.69 billion following the conclusion of the FGNSB Offer for October 2017.

Out of the N6.69 billion, N3.71 billion was for the 2-year Bond while N2.98 billion was for the 3-year bond.The Debt Management Office (DMO), which issues the FGNSB on behalf of the federal government said the high level of subscription by investors since the debut offer in March 2017, showed that the product appealed widely to investors.

Read More

Senate indicts Okonjo-Iweala, says her memo caused N1.7tn revenue loss

The Senate Ad Hoc Committee on Alleged Misuse, Under-Remittance and Other Fraudulent Activities has said revenue agencies short-changed the Federal Government to the tune of N1.7tn as unremitted revenue generated between 2012 and 2016.

The panel blamed it on a memo by a former Minister of Finance, Mrs. Ngozi Okonjo-Iweala, who allegedly issued the memo to the agencies to remit 25 per cent of revenue they generated to the Federal Government and spend 75 per cent on their expenditures.

Read More

Unilever rebrands products’, celebrates heritage

Unilever Nigeria Plc has announced the rebranding of Pears baby range of products to bring greater value to mothers and babies in the country. The rebrand of Pears baby range is aimed at sharing the unique benefits of Pears baby range of baby care products pure, mild and gentle on baby’s skin and, celebrating Pears heritage as a caring and trusted baby care brand bringing quality products to Nigerian households since 1971.

Speaking during the event at the Amuwo-Odofin Maternal and Child Centre, Festac, Lagos, Unilever Nigeria’s Category Manager, Skin Care, Adetoun Adegbite, said, ‘’Pears baby range made from carefully selected ingredients suitable for baby’s tender skin has gone through series of evolutions since 1971 when it was first introduced into the Nigerian market.”

Read More

Customs deploys over 800 officers to combat smuggling

ABOUT 800 senior officers  of the Nigerian Customs Service (NCS), Federal Operations Unit ( FOU) Zone ‘A’ , Ikeja, have been deployed to the remote areas of major towns and villages around the border areas to increase the anti-smuggling war’s tempo.  This is to curb smuggling as we approach the Yuletide, it was learnt. The Unit, findings revealed, covers Lagos, Ogun, Oyo, Ondo, Ekiti and Osun states.

FOU anti-smuggling strike team include the Lagos Roving, the CG Compliance and Patrol; all combing the nooks and crannies of the six states for smugglers. The deployment by the Unit Controller, Mohammed Uba Garba, it was gathered, emanated from the report that smugglers would be on rampage from the end of this month  till the end of December.

Read More

Access Bank Raises the Alarm over Impact of Petroleum Fiscal Policy on Lending

Access Bank Plc has raised the alarm that the impact of the National Petroleum Fiscal Policy (NPFP) on lending would reduce funding appetitive for financial institutions, shrink oil and gas industry’s Foreign Direct Investment (FDI) and impair cashflow for indigenous players.

Speaking at the recent Financial Forum for gas, which was organised by the Nigerian Gas Association (NGA), the Group Managing Director of Access Bank, Mr. Herbert Wigwe said the adjustments on tax deductible items in the NPFP would discourage the international oil companies (IOCs) from further investments thereby reducing bankable deposits in local banks and the much needed liquidity to support lending in the financial industry.

Read More

Secret ownership of companies dangerous —Osinbajo

Vice-President Yemi Osinbajo on Monday said hidden corporate ownership posed serious danger to developing countries like Nigeria.

He also said that Nigeria was still grappling with the negative consequences of the use of opacity by senior members of government and their cronies between 1993 and 1998 awarding themselves juicy contracts in the extractive industry. He said one of such incidents involving Malabu Oil and Gas had been a subject of criminal and civil proceedings in many parts of the world involving huge legal costs.

Read More

Experts opt for local currency deals in infrastructure financing

Capital market stakeholders have renewed call for government to accelerate economic growth through mobilisation of domestic currency financing for infrastructure and other capital projects from the nation’s financial market.Besides, they also stressed the need for Federal Government to finance fiscal deficits by borrowing from local markets.

According to the stakeholders, who spoke in an interview with The Guardian, they argued that a decade of financial crises in emerging markets has demonstrated that currency markets can be unexpectedly volatile.

Read More

‘Federal agencies fail to remit N1.695tr’

The Senate ad-hoc committee probing misuse and under remittance of Internally Generated Revenue (IGR) has uncovered over N1.695 trillion unremitted by Federal Government agencies. The committee is also investigating other fraudulent activities in collection, accounting, remittance and expenditure of IGR.

The nine-member committee headed by Senator Olamilekan Solomon Adeola, in its interim report submitted to the Senate on October 19, 2017 said  26 agencies generated a total of N21, 909,831,657,897 between January 2012 and December last year but lamented that  a total of N1.695,585,887,406 was not remitted to Federal Government account by the agencies within the period.

Read More

Germany, Nigeria trade volume falls to €3.5bn

The German Ambassador to Nigeria, Dr Bernhard Schlagheck, disclosed in Abuja on Monday that the volume of trade between Nigeria and Germany shrank to €3.5bn in 2016. Schlagheck said in an interview that the trade volume dropped by about €2.5bn from €6bn recorded in 2015.

The envoy blamed the fall on the economic downturn in Nigeria, expressing his determination to work toward increasing the volume of trade between the two countries. He said that as part of efforts to deepen bilateral economic relations, the German Government was supporting market exploration missions by business delegations to Nigeria.

Read More

Comment here

Economic News Update

Business & Economic News Update: Tuesday, 24th October, 2017

 

CBN Pumps $195m into Forex Market

The Central Bank of Nigeria (CBN) on Monday injected the sum of $195 million into the interbank foreign exchange (forex) market. Figures obtained from the Bank indicated that the central bank offered $100 million to authorised dealers in the wholesale segment of the market, while the small and medium scale enterprises (SMEs) segment received the sum of $50 million.

Those requiring foreign exchange for invisibles such as tuition fees, medical payments and basic travel allowance (BTA), among others, were allocated the sum of $45 million. The central bank’s acting Director in charge of Corporate Communications, Mr. Isaac Okorafor, confirmed the figures, saying that the Bank was confident that the level of transparency it had entrenched in the market would help the naira to sustain its steady run against the dollar and other major currencies around the world.

Read More

Lafarge to list N25b commercial paper, floats N131.6b rights issue

Lafarge Africa Plc has concluded plans to issue N25 billion in commercial papers from a N60 billion programme this month.The company made this known when it released its financial results for the third quarter and nine-month period ended September 30, 2017. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities.

The company explained that the net proceeds of the commercial papers would support short-term working capital needs, after which it will be listed on the FMDQ OTC Exchange. In addition, the already approved N131.65 rights issue will hold in November at N42.50 per share.

Read More

Banks send messages to customers without BVN

Deposit Money Banks have started sending text messages and electronic mails to customers without Bank Verification Number, asking them to come and complete the biometric registration process. Some bank officials told our correspondent on Monday that majority of customers affected by the development were mostly those with names mismatch.

Customers, who have different names order across banks were mostly affected, it was learnt. Our correspondent observed on Monday that there were no queues in banking halls despite the court ruling directing the Central Bank of Nigeria and 19 Deposit Money Banks to freeze the bank accounts of customers without the BVN.

Read More

Transcorp Recovers from Loss, Records Profit After Tax of N8.9bn

Transnational Corporation of Nigeria Plc (Transcorp), Nigeria’s foremost investment conglomerate has announced financial results for the nine months ended September 30, 2017, showing a profit after tax (PAT) of N8.9 billion compared with a loss in the corresponding period of 2016. The results showed revenue of N56.76 billion, up by 35 per cent from N41.92 billion in 2016, while gross profit improved from N19.84 billion in 2016 to N25.62 billion, indicating a growth of 45 per cent. Similarly, operating profit grew from N11.58 billion in 2016 to N16.81 billion.

Read More

Unity Bank grows capital base to N80b

Unity Bank Plc’s capital base has hit N80 billion, up from N31 billion in 2014, its former Chairman, Board of Directors, Thomas Etuh, has said. Etuh, the immediate past board chairman of the bank said in a post-retirement interview with News Agency of Nigeria (NAN) that the growth was recorded under his watch, between 2014 and 2017.

He retired as the bank’s board chairman a fortnight ago and explained that the lender was able to achieve the feat because of its “agric business” banking. “You know Unity Bank is number one in agriculture, in terms of agric lending to small holder farmers; we also have a product for youths because youths own this generation. I came into Unity Bank in time of recapitalisation under Sanusi  Lamido Sanusi as the Central Bank of Nigeria Governor and we recapitalised the bank to get it to a national bank where it is today.

Read More

Elumelu outlines roles of MFBs, SMEs in economic growth

The Chairman, Heirs Holding, Mr. Tony Elumelu, says microfinance banks and small businesses are crucial to economic growth He said efforts by the MFBs including Lift Above Poverty Organisation to enhance job creation through lending to small businesses were enhancing economic growth.

He therefore said necessary support in terms of ease of doing business, consistent policy, friendly business climate, among others, must be given to the micro lending sub-sector in order to enhance its growth.

Read More

Bank harps on capacity building for growth of small businesses

As part of effort at promoting growth of Small and Medium Enterprises, Stanbic IBTC Bank has insisted that the importance of capacity building cannot be over emphasized. To this end, the bank organised a Capacity Building Series for entrepreneurs in Lagos recently where business managers were taught importance of keeping business records, understanding the implication of the activities in growing balance sheets, developing keen eyes on managing cash flows among others.

The facilitators also explained how to determine required funds to enable business owners manage their cash flow, determine the required funds needed to enable them meet their growth strategy and understand the valuation of businesses and how to manage resources.

Read More

FG Raises N6.69bn through Savings Bond

In pursuit of the federal government’s objective of financial inclusion by attracting retail investors into the bond market, the government on Monday disclosed that it has raised a total of N6.69 billion through the monthly issuance of the Federal Government of Nigeria Savings Bond (FGNSB) since March this year. The amount raised since inception, according to a report, grew to N6.69 billion following the conclusion of the FGNSB Offer for October 2017.

Out of the N6.69 billion, N3.71 billion was for the 2-year Bond while N2.98 billion was for the 3-year bond.The Debt Management Office (DMO), which issues the FGNSB on behalf of the federal government said the high level of subscription by investors since the debut offer in March 2017, showed that the product appealed widely to investors.

Read More

Senate indicts Okonjo-Iweala, says her memo caused N1.7tn revenue loss

The Senate Ad Hoc Committee on Alleged Misuse, Under-Remittance and Other Fraudulent Activities has said revenue agencies short-changed the Federal Government to the tune of N1.7tn as unremitted revenue generated between 2012 and 2016.

The panel blamed it on a memo by a former Minister of Finance, Mrs. Ngozi Okonjo-Iweala, who allegedly issued the memo to the agencies to remit 25 per cent of revenue they generated to the Federal Government and spend 75 per cent on their expenditures.

Read More

Unilever rebrands products’, celebrates heritage

Unilever Nigeria Plc has announced the rebranding of Pears baby range of products to bring greater value to mothers and babies in the country. The rebrand of Pears baby range is aimed at sharing the unique benefits of Pears baby range of baby care products pure, mild and gentle on baby’s skin and, celebrating Pears heritage as a caring and trusted baby care brand bringing quality products to Nigerian households since 1971.

Speaking during the event at the Amuwo-Odofin Maternal and Child Centre, Festac, Lagos, Unilever Nigeria’s Category Manager, Skin Care, Adetoun Adegbite, said, ‘’Pears baby range made from carefully selected ingredients suitable for baby’s tender skin has gone through series of evolutions since 1971 when it was first introduced into the Nigerian market.”

Read More

Customs deploys over 800 officers to combat smuggling

ABOUT 800 senior officers  of the Nigerian Customs Service (NCS), Federal Operations Unit ( FOU) Zone ‘A’ , Ikeja, have been deployed to the remote areas of major towns and villages around the border areas to increase the anti-smuggling war’s tempo.  This is to curb smuggling as we approach the Yuletide, it was learnt. The Unit, findings revealed, covers Lagos, Ogun, Oyo, Ondo, Ekiti and Osun states.

FOU anti-smuggling strike team include the Lagos Roving, the CG Compliance and Patrol; all combing the nooks and crannies of the six states for smugglers. The deployment by the Unit Controller, Mohammed Uba Garba, it was gathered, emanated from the report that smugglers would be on rampage from the end of this month  till the end of December.

Read More

Access Bank Raises the Alarm over Impact of Petroleum Fiscal Policy on Lending

Access Bank Plc has raised the alarm that the impact of the National Petroleum Fiscal Policy (NPFP) on lending would reduce funding appetitive for financial institutions, shrink oil and gas industry’s Foreign Direct Investment (FDI) and impair cashflow for indigenous players.

Speaking at the recent Financial Forum for gas, which was organised by the Nigerian Gas Association (NGA), the Group Managing Director of Access Bank, Mr. Herbert Wigwe said the adjustments on tax deductible items in the NPFP would discourage the international oil companies (IOCs) from further investments thereby reducing bankable deposits in local banks and the much needed liquidity to support lending in the financial industry.

Read More

Secret ownership of companies dangerous —Osinbajo

Vice-President Yemi Osinbajo on Monday said hidden corporate ownership posed serious danger to developing countries like Nigeria.

He also said that Nigeria was still grappling with the negative consequences of the use of opacity by senior members of government and their cronies between 1993 and 1998 awarding themselves juicy contracts in the extractive industry. He said one of such incidents involving Malabu Oil and Gas had been a subject of criminal and civil proceedings in many parts of the world involving huge legal costs.

Read More

Experts opt for local currency deals in infrastructure financing

Capital market stakeholders have renewed call for government to accelerate economic growth through mobilisation of domestic currency financing for infrastructure and other capital projects from the nation’s financial market.Besides, they also stressed the need for Federal Government to finance fiscal deficits by borrowing from local markets.

According to the stakeholders, who spoke in an interview with The Guardian, they argued that a decade of financial crises in emerging markets has demonstrated that currency markets can be unexpectedly volatile.

Read More

‘Federal agencies fail to remit N1.695tr’

The Senate ad-hoc committee probing misuse and under remittance of Internally Generated Revenue (IGR) has uncovered over N1.695 trillion unremitted by Federal Government agencies. The committee is also investigating other fraudulent activities in collection, accounting, remittance and expenditure of IGR.

The nine-member committee headed by Senator Olamilekan Solomon Adeola, in its interim report submitted to the Senate on October 19, 2017 said  26 agencies generated a total of N21, 909,831,657,897 between January 2012 and December last year but lamented that  a total of N1.695,585,887,406 was not remitted to Federal Government account by the agencies within the period.

Read More

Germany, Nigeria trade volume falls to €3.5bn

The German Ambassador to Nigeria, Dr Bernhard Schlagheck, disclosed in Abuja on Monday that the volume of trade between Nigeria and Germany shrank to €3.5bn in 2016. Schlagheck said in an interview that the trade volume dropped by about €2.5bn from €6bn recorded in 2015.

The envoy blamed the fall on the economic downturn in Nigeria, expressing his determination to work toward increasing the volume of trade between the two countries. He said that as part of efforts to deepen bilateral economic relations, the German Government was supporting market exploration missions by business delegations to Nigeria.

Read More

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