Economic News Update

Business & Economic News Update: Wednesday, 1st November, 2017

 

Fraud: NSE summons Ogiemwonyi, Ojo, others

The Disciplinary Committee of the National Council of the Nigerian Stock Exchange has summoned Mr. Victor Ogiemwonyi, Mr. Mathew Ojo, Mr. Alex Adeusi, Mr. Fisayo Jassey-Jabarr and Partnership Securities Limited, a dealing member of the NSE, to appear before it to answer for allegations of fraud. The appearance of the aforementioned persons is scheduled for November 14 at the NSE building in Lagos, according to a document obtained by our correspondent on Tuesday.

The Exchange said the summons was for the purpose of hearing a complaint by Mr. Arnold Ekpe against Partnership Securities Limited and Ogiemwonyi for misappropriation of proceeds of shares; and complaint against Ojo, Adeusi and Jassey-Jabarr regarding their actions, which allegedly assisted/facilitated Partnership Securities and Ogiemwonyi to misappropriate the proceeds of the sale of Ekpe’s shares.

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Again, Nigeria’s Manufacturing Index Sustains Expansion

The Manufacturing Purchasing Managers’ Index (PMI) stood at 55 index points in October 2017, indicating an expansion in the manufacturing sector for the seventh consecutive month.

The PMI report for October obtained on the Central Bank of Nigeria’s website yesterday, showed that 11 of the 16 sub-sectors reported growth in the review month in the following order: plastics & rubber products; paper products; nonmetallic mineral products; chemical & pharmaceutical products; textile, apparel, leather & footwear; food, beverage & tobacco products; furniture & related products; primary metal; electrical equipment; printing & related support activities; and fabricated metal products.

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N797bn VAT revenue recorded in 10 months – Adeosun

The Federation Account recorded a revenue inflow of N797.51bn from Value Added Tax between January and October this year, the Minister of Finance, Mrs. Kemi Adeosun, has said. Adeosun, who released the details on Tuesday in Abuja, noted that the highest VAT collection of N86.71bn was achieved in September.

She added that the sums of N84.67bn and N83.315bn were recorded in May and October, respectively. On the other hand, the minister explained that March experienced the lowest VAT earning of N69.20bn. The framework under which VAT is administered allows the Federal Government to get 15 per cent of VAT revenue, while the states and local governments receive 50 per cent and 35 per cent, respectively.

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Oando Records N7.1 Billion Profit After Tax in Q3

The prospects are getting brighter for Oando Plc as the company has reported a profit after tax of N7.1 billion for the nine months ended September 30, 2017, compared with a loss of N35.886 billion in the corresponding period of 2016.

According to the results, released yesterday, Oando’s financials show positive performance across all financial indices. Turnover increased by 16 to N383.5 billion from N329.9 billion in comparative period of 2016, gross profit increased by 148 per cent to N71.2 billion from N28.6 billion while profit-after-tax increased by 120% to N7.1 billion from a loss of (N35.8 billion) in Q3 2016.

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Oil price rises to $61 per barrel

Global oil benchmark, Brent crude, rose above $61 per barrels on Tuesday after a week of gains as the prospect of increasing United States exports dampened bullish sentiment that has driven Brent crude to more than two-year highs above $60 per barrel.

Brent, against which half of the world’s oil is priced, increased to $61.32 a barrel by 8:00pm, up around 37 per cent from its 2017 lows hit in June. The United States West Texas Intermediate crude was seven cents or 0.1 per cent higher at $54.21, still near its highest since February and close to its highest for more than two years.

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CBN Pumps Another $195m into Forex Market

The Central Bank of Nigeria (CBN), on Tuesday injected another $195 million into the interbank foreign exchange market. The central bank offered the sum of $100 million to the wholesale window and intervened in the small and medium enterprises (SMEs) segment with $50 million. The invisibles segment, comprising tuition, medical payments and Basic Travel Allowance received $45 million.

Confirming the figures, the Bank’s acting Director, Corporate Communications Department, Mr. Isaac Okorafor, reiterated CBN’s capacity to sustain the ongoing foreign exchange intervention especially now that the nation’s external reserve is on the upward climb, and stands at $34 billion.

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Guinness Nigeria gets N40b as rights issue

Guinness Nigeria Plc has secured N39.7 billion new equity funds from its  shareholders, who picked up the entire rights offered by the brewer. Guinness Nigeria had offered 684.49 million ordinary shares of 50 kobo each at N58 per share to existing shareholders on the basis of five new shares for every 11 shares held as at the close of business on March 15, 2017. Application list for the rights issue opened on July 24, 2017 and closed on August 30, 2017.

Listing documents at the Nigerian Stock Exchange (NSE) showed that 684.49 million ordinary shares of 50 kobo each were added to shares outstanding in the names of Guinness Nigeria. With the listing, total issued and fully paid up shares of Guinness Nigeria has now increased from 1.5 billion shares to 2.19 billion shares.

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‘NNPC’ll find crude in commercial quantities in inland basins’

The Group Managing Director, Nigerian National Petroleum Corporation, Maikanti Baru, on Tuesday announced that the aggressive exploration of the inland basins would soon yield result with hydrocarbon finds in commercial quantities. Baru stated this when he received a delegation from the Nigerian Association of Petroleum Explorationists, led by its President, Mr. Abiodun Adesanya, in Abuja.

He noted that based on preliminary results from the exploration activities in the inland basins so far, especially the Benue Trough, there was strong indication that commercial quantities of oil and gas finds would soon be made.

Read More

Conoil grows turnover to N70.2b in Q3

Conoil Plc grew its top-line by about 10 per cent to N70.23 billion in the third quarter as the petroleum-marketing company braced against industry challenges to sustain positive outlook.

Key extracts of the nine-month report for the period ended September 30, 2017 showed that Conoil grew its turnover to N70.2 billion in third quarter 2017 as against N63.95 billion recorded in comparable period of 2016. Gross profit rose from N9.55 billion to N10.57 billion. Profits before and after stood at N2.03 billion and N1.36 billion respectively in 2017 while earnings per share stood at N1.96. Pre and post tax profits stood at N2.72 billion and N1.81 billion in third quarter 2016.

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NAFDAC Slashes Registration Fees for Food and Products by 50%

The National Agency for Food and Drugs Administration and Control NAFDAC has slashed the registration fees for food and products by business outfits by 50%. The acting Director General, Mr. Ademola Mogbojuri, who disclosed this in Minna, Niger state on Monday, said that the decision was to boost manufacturing of goods and other businesses in the country.

Speaking at a Stakeholders Consultative Forum for Small and Medium Scale Enterprises (SMSE), Mogbojuri said the new initiative was also in support of the federal government’s initiative on Ease of Doing Business.

Read More

Nigeria jumps 24 places in ease of doing business …Buhari, Osinbajo applaud ranking

The World Bank’s Ease of Doing Business Report for 2018 has placed Nigeria in the 145th position. This is 24 positions better than the 169th position the nation was ranked in the 2017 report.

According the report released by the World Bank on Tuesday, Nigeria is among the 10 top countries that improved on reforms. New Zealand is first on the ease of doing business for the second consecutive year. The areas that Nigeria improved with reforms were in starting a business, dealing with construction permits, registering a property, getting credit and paying taxes.

Read More

BDCs take BVN validation, compliance to new heights

Bureaux de Change (BDC) operators have one priority-to  comply with rules and regula-tions guiding the foreign exchange (forex) market.nThe BDCs agreed that Bank Verification Number (BVN) remained a veritable tool for fighting fraud in the forex market. Likewise, the Central Bank of Nigeria (CBN) believed that the BVN policy implementation would enhance transparency in forex deals and sustain exchange rate stability.

The impact has been the swift recovery of the naira from over N520/$1 in February to N361/$1 at the parallel market, a development that has continued to marvel financial pundits. But those, who understood the role played by the BDCs in achieving this milestone were not surprised.

Read More

FBN Holdings Raises Shareholders’ Hopes

FBN Holdings Plc is one of the blue chip stocks on the Nigerian Stock Exchange (NSE) given the fact that it is the parent firm of First Bank of Nigeria Limited. Every investor would want to have FBN Holdings in its portfolio because of the many prospects.

However, in terms of dividend payment, many holders of the stocks have been disappointed in recent times due to the low dividend they have been receiving, compared with its peers in the market. FBN Holdings have not been able to pay high dividend because of the decline in profitability. While some of its peers recorded increases in bottom-line, FBN Holdings suffered profit decline, majorly due to high provision for loans losses.

Read More

Nigerian Breweries announces results for 2017, declares N7.9b interim dividend

The Board of Directors of Nigerian Breweries Plc  has announced a revenue of N254.7 billion for nine (9) months ended September 30, 2017. In the statement of the result sent to Nigerian Stock Exchange (NSE), its board further announced the declaration of an interim dividend of N7,996,902,051 (Seven billion, nine hundred and ninety six million, nine hundred and two thousand and fifty one naira only), which is, N1.00 (one naira only) per ordinary share of fifty kobo in the share capital of the company.

An analysis of the unaudited and provisional result showed that results from operating activities grew from N37.9 billion to N42.3 billion, Profit before tax rose from N27.8 billion to N34.4 billion while Profit after tax grew to close at N23.9 billion from the N20.1 billion posted in the same period in 2016.

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Economic News Update

Business & Economic News Update: Wednesday, 1st November, 2017

 

Fraud: NSE summons Ogiemwonyi, Ojo, others

The Disciplinary Committee of the National Council of the Nigerian Stock Exchange has summoned Mr. Victor Ogiemwonyi, Mr. Mathew Ojo, Mr. Alex Adeusi, Mr. Fisayo Jassey-Jabarr and Partnership Securities Limited, a dealing member of the NSE, to appear before it to answer for allegations of fraud. The appearance of the aforementioned persons is scheduled for November 14 at the NSE building in Lagos, according to a document obtained by our correspondent on Tuesday.

The Exchange said the summons was for the purpose of hearing a complaint by Mr. Arnold Ekpe against Partnership Securities Limited and Ogiemwonyi for misappropriation of proceeds of shares; and complaint against Ojo, Adeusi and Jassey-Jabarr regarding their actions, which allegedly assisted/facilitated Partnership Securities and Ogiemwonyi to misappropriate the proceeds of the sale of Ekpe’s shares.

Read More

Again, Nigeria’s Manufacturing Index Sustains Expansion

The Manufacturing Purchasing Managers’ Index (PMI) stood at 55 index points in October 2017, indicating an expansion in the manufacturing sector for the seventh consecutive month.

The PMI report for October obtained on the Central Bank of Nigeria’s website yesterday, showed that 11 of the 16 sub-sectors reported growth in the review month in the following order: plastics & rubber products; paper products; nonmetallic mineral products; chemical & pharmaceutical products; textile, apparel, leather & footwear; food, beverage & tobacco products; furniture & related products; primary metal; electrical equipment; printing & related support activities; and fabricated metal products.

Read More

N797bn VAT revenue recorded in 10 months – Adeosun

The Federation Account recorded a revenue inflow of N797.51bn from Value Added Tax between January and October this year, the Minister of Finance, Mrs. Kemi Adeosun, has said. Adeosun, who released the details on Tuesday in Abuja, noted that the highest VAT collection of N86.71bn was achieved in September.

She added that the sums of N84.67bn and N83.315bn were recorded in May and October, respectively. On the other hand, the minister explained that March experienced the lowest VAT earning of N69.20bn. The framework under which VAT is administered allows the Federal Government to get 15 per cent of VAT revenue, while the states and local governments receive 50 per cent and 35 per cent, respectively.

Read More

Oando Records N7.1 Billion Profit After Tax in Q3

The prospects are getting brighter for Oando Plc as the company has reported a profit after tax of N7.1 billion for the nine months ended September 30, 2017, compared with a loss of N35.886 billion in the corresponding period of 2016.

According to the results, released yesterday, Oando’s financials show positive performance across all financial indices. Turnover increased by 16 to N383.5 billion from N329.9 billion in comparative period of 2016, gross profit increased by 148 per cent to N71.2 billion from N28.6 billion while profit-after-tax increased by 120% to N7.1 billion from a loss of (N35.8 billion) in Q3 2016.

Read More

Oil price rises to $61 per barrel

Global oil benchmark, Brent crude, rose above $61 per barrels on Tuesday after a week of gains as the prospect of increasing United States exports dampened bullish sentiment that has driven Brent crude to more than two-year highs above $60 per barrel.

Brent, against which half of the world’s oil is priced, increased to $61.32 a barrel by 8:00pm, up around 37 per cent from its 2017 lows hit in June. The United States West Texas Intermediate crude was seven cents or 0.1 per cent higher at $54.21, still near its highest since February and close to its highest for more than two years.

Read More

CBN Pumps Another $195m into Forex Market

The Central Bank of Nigeria (CBN), on Tuesday injected another $195 million into the interbank foreign exchange market. The central bank offered the sum of $100 million to the wholesale window and intervened in the small and medium enterprises (SMEs) segment with $50 million. The invisibles segment, comprising tuition, medical payments and Basic Travel Allowance received $45 million.

Confirming the figures, the Bank’s acting Director, Corporate Communications Department, Mr. Isaac Okorafor, reiterated CBN’s capacity to sustain the ongoing foreign exchange intervention especially now that the nation’s external reserve is on the upward climb, and stands at $34 billion.

Read More

Guinness Nigeria gets N40b as rights issue

Guinness Nigeria Plc has secured N39.7 billion new equity funds from its  shareholders, who picked up the entire rights offered by the brewer. Guinness Nigeria had offered 684.49 million ordinary shares of 50 kobo each at N58 per share to existing shareholders on the basis of five new shares for every 11 shares held as at the close of business on March 15, 2017. Application list for the rights issue opened on July 24, 2017 and closed on August 30, 2017.

Listing documents at the Nigerian Stock Exchange (NSE) showed that 684.49 million ordinary shares of 50 kobo each were added to shares outstanding in the names of Guinness Nigeria. With the listing, total issued and fully paid up shares of Guinness Nigeria has now increased from 1.5 billion shares to 2.19 billion shares.

Read More

‘NNPC’ll find crude in commercial quantities in inland basins’

The Group Managing Director, Nigerian National Petroleum Corporation, Maikanti Baru, on Tuesday announced that the aggressive exploration of the inland basins would soon yield result with hydrocarbon finds in commercial quantities. Baru stated this when he received a delegation from the Nigerian Association of Petroleum Explorationists, led by its President, Mr. Abiodun Adesanya, in Abuja.

He noted that based on preliminary results from the exploration activities in the inland basins so far, especially the Benue Trough, there was strong indication that commercial quantities of oil and gas finds would soon be made.

Read More

Conoil grows turnover to N70.2b in Q3

Conoil Plc grew its top-line by about 10 per cent to N70.23 billion in the third quarter as the petroleum-marketing company braced against industry challenges to sustain positive outlook.

Key extracts of the nine-month report for the period ended September 30, 2017 showed that Conoil grew its turnover to N70.2 billion in third quarter 2017 as against N63.95 billion recorded in comparable period of 2016. Gross profit rose from N9.55 billion to N10.57 billion. Profits before and after stood at N2.03 billion and N1.36 billion respectively in 2017 while earnings per share stood at N1.96. Pre and post tax profits stood at N2.72 billion and N1.81 billion in third quarter 2016.

Read More

NAFDAC Slashes Registration Fees for Food and Products by 50%

The National Agency for Food and Drugs Administration and Control NAFDAC has slashed the registration fees for food and products by business outfits by 50%. The acting Director General, Mr. Ademola Mogbojuri, who disclosed this in Minna, Niger state on Monday, said that the decision was to boost manufacturing of goods and other businesses in the country.

Speaking at a Stakeholders Consultative Forum for Small and Medium Scale Enterprises (SMSE), Mogbojuri said the new initiative was also in support of the federal government’s initiative on Ease of Doing Business.

Read More

Nigeria jumps 24 places in ease of doing business …Buhari, Osinbajo applaud ranking

The World Bank’s Ease of Doing Business Report for 2018 has placed Nigeria in the 145th position. This is 24 positions better than the 169th position the nation was ranked in the 2017 report.

According the report released by the World Bank on Tuesday, Nigeria is among the 10 top countries that improved on reforms. New Zealand is first on the ease of doing business for the second consecutive year. The areas that Nigeria improved with reforms were in starting a business, dealing with construction permits, registering a property, getting credit and paying taxes.

Read More

BDCs take BVN validation, compliance to new heights

Bureaux de Change (BDC) operators have one priority-to  comply with rules and regula-tions guiding the foreign exchange (forex) market.nThe BDCs agreed that Bank Verification Number (BVN) remained a veritable tool for fighting fraud in the forex market. Likewise, the Central Bank of Nigeria (CBN) believed that the BVN policy implementation would enhance transparency in forex deals and sustain exchange rate stability.

The impact has been the swift recovery of the naira from over N520/$1 in February to N361/$1 at the parallel market, a development that has continued to marvel financial pundits. But those, who understood the role played by the BDCs in achieving this milestone were not surprised.

Read More

FBN Holdings Raises Shareholders’ Hopes

FBN Holdings Plc is one of the blue chip stocks on the Nigerian Stock Exchange (NSE) given the fact that it is the parent firm of First Bank of Nigeria Limited. Every investor would want to have FBN Holdings in its portfolio because of the many prospects.

However, in terms of dividend payment, many holders of the stocks have been disappointed in recent times due to the low dividend they have been receiving, compared with its peers in the market. FBN Holdings have not been able to pay high dividend because of the decline in profitability. While some of its peers recorded increases in bottom-line, FBN Holdings suffered profit decline, majorly due to high provision for loans losses.

Read More

Nigerian Breweries announces results for 2017, declares N7.9b interim dividend

The Board of Directors of Nigerian Breweries Plc  has announced a revenue of N254.7 billion for nine (9) months ended September 30, 2017. In the statement of the result sent to Nigerian Stock Exchange (NSE), its board further announced the declaration of an interim dividend of N7,996,902,051 (Seven billion, nine hundred and ninety six million, nine hundred and two thousand and fifty one naira only), which is, N1.00 (one naira only) per ordinary share of fifty kobo in the share capital of the company.

An analysis of the unaudited and provisional result showed that results from operating activities grew from N37.9 billion to N42.3 billion, Profit before tax rose from N27.8 billion to N34.4 billion while Profit after tax grew to close at N23.9 billion from the N20.1 billion posted in the same period in 2016.

Read More

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