Economic News Update

Business & Economic News Update: Wednesday, 27th September, 2017


Standard Alliance gets shareholders’ approval for share reconstruction

Shareholders of Standard Alliance Insurance Plc have approved the plan by the insurance company to reduce its outstanding issued shares under a reverse stock split arrangement. Shareholders approved the share reconstruction at the company’s 21st annual general meeting (AGM) in Lagos.

Its Group Managing Director,  Mr. Bode Akinboye said the share reconstruction would enable the board and management reposition the company and create value for its shareholders.  He said the reconstruction would improve the company’s standing in the market place and put the company in a strong position to declare dividend.

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10 Banks Facilitate N55.6tn Investments on FMDQ OTC Exchange

Access Bank Plc, Stanbic IBTC Bank Limited, Ecobank Nigeria Limited and United Bank for Africa (UBA) Plc, led the banks that facilitated highest trading value on the FMDQ OTC Securities Exchange between January and July 2017.

Trading data obtained by THISDAY for the period of seven months showed that a total of N78.91trillion was traded on the fixed income and currency exchange.

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Arms smuggling may scare investors, experts warn

Sequel to the seizure of about 2,671 pieces of smuggled firearms within eight months, security experts have called for permanent deployment of security agencies to hot spots into Nigeria, in order to restore confidence in prospective foreign investors that have been scared by the recent development.

Indeed, the experts said this should serve as a wake-up call to the security agencies on the need to plug all loopholes, and ensure that the country ceased to be a dumping ground for weapons. Meanwhile, facts have emerged that the container bearing the 1,100 pieces of pump action riffles was actually listed and dropped for physical examination, but the import duty was yet to be paid as at the time of interception.

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Union Bank, AG Leventis seek extension of deadline to restructure shares

Union Bank of Nigeria (UBN) Plc and AG Leventis (Nigeria) Plc have applied to the Nigerian Stock Exchange (NSE) to grant them waiver and extend the deadlines for the restructuring of their share capital. The NSE had given Union Bank and AG Leventis Friday, June 30, and July 31, 2017 respectively as deadlines to restructure their issued share capital to dilute the existing concentrated shareholdings of the core investors and allow more investments from the general investing public.

The latest report by the Nigerian Stock Exchange (NSE) on companies in violation of post-listing rules indicated that Union Bank and AG Leventis are still in violation of the listing requirement on free float, which mandates companies on the Exchange to have a certain minimum percentage of their shares in the hand of investing public.

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Banks, pension managers, others stake N105bn on sukuk bond

The Islamic sukuk bond recently issued by the Federal Government was oversubscribed by more than N5bn, the Debt Management Office said on Tuesday. The N100bn seven-year sukuk offered by the Federal Government, which closed on Friday, attracted a subscription of N105,878,320,000, according to a statement issued in Abuja by the DMO.

According to the DMO, the project-tied investment facility attracted investors from across a broad spectrum of the public, including pension funds, banks, fund managers and institutional as well as retail investors.

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Exit from recession still fragile, says CBN

The Monetary Policy Committee of the Central Bank of Nigeria on Tuesday said the 0.55 per cent Gross Domestic Product growth rate, which took the economy out of recession, was still fragile.

The Governor, CBN, Mr. Godwin Emefiele, said this when he read the decision of the committee after its two-day meeting. He said that the MPC further noted that although the recovery was weak, it was hopeful that the active implementation of the 2017 budget could boost aggregate demand and employment.

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Guinea Insurance plans N1b new capital raising

The board of Guinea Insurance Plc has approved a new capital raising of N1 billion as part of efforts to boost the operations and capital adequacy of the insurance company. The net proceeds from the new capital raising will be used to address shortfall in the company’s statutory capital requirement.

External auditors to Guinea Insurance Plc, Ernst & Young, had drawn attention, in the latest audited report and accounts for the year ended December 31, 2016, to the fact that the insurance firm’s shareholders fund of N2.9 billion is less than the minimum regulatory capital requirement.

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‘FG raised N6.3bn from savings bond in seven months’

The government has raised N6.3bn through the issuance of monthly Federal Government of Nigeria Savings Bond in the last seven months, the Debt Management Office has said.

The new bond was introduced to the country in March and the last offer was made about two weeks ago and lifted the contribution of the bond to the government’s coffers to N6.3bn. According to the DMO, Federal Government securities are the safest of domestic investments because they are backed by the full faith and credit of the government.

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Investdata, APT Securities hold equity workshop

Investdata Consulting Limited and APT Securities & Funds Limited have concluded arrangements to host the second edition of a free equity investment education workshop in Lagos. The theme of the workshop is: “Profitable stock market trading strategies for financial independence and freedom”.

The event, which will hold on Monday, October 2, is coming after the Abuja free equity investment summit where market players, high net worth and retail investors were shown how to protect their capital and profit from market correction in a recovering economy and market.

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N336bn released for capital projects in first quarter – Adeosun

The Federal Government has said it has released a total sum of N336bn for the implementation of capital projects contained in the 2017 budget.

The Minister of Finance, Mrs. Kemi Adeosun, who confirmed the release in a statement issued on Tuesday, said the amount was for the first quarter of this year. The 2017 budget was presented to the National Assembly on December 14, 2016, and passed by the lawmakers on May 11, 2017.

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Kano, Chinese company sign $600 million deal on textile hub

Kano State Government has entered into a Memorandum of Understanding (MoU) with a Chinese firm, Shandong Ruyi Technology Group of China, to establish a $600million Textile Industrial Park in Kano. Shandong Ruyi is China’s leading innovative technology textile enterprise, and the planned multi-million dollar investment in Kano will be its biggest in Africa, upon completion.

The agreemen,t which was reached at the Company’s headquarters in Joining, Shandong, China, was not only anchored at cementing the industrial relations between the two countries but engender economic prosperity in Kano.

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Osinbajo Urges Transparency in Tax Matters

The Vice President, Professor Yemi Osinbajo, has challenged African tax administrators to address issues relating to Base Erosion and Profit Shifting (BEPS) and increase transparency in resource mobilisation.

Osinbajo gave the advice while declaring open the third international conference of Africa Tax Administration Forum (ATAF) in Abuja yesterday. The vice president added that the continent also needs to ensure transparency and information sharing among member states.

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Senate alleges poor budget implementation, summons Adeosun, Udoma

The Senate has invited the Minister of Finance, Mrs. Kemi Adeosun, and Minister of Budget and National Planning, Senator Udo Udoma, to brief it on the implementation of the 2017 Appropriation Act.

The upper chamber of the National Assembly, at the plenary on Tuesday, scored the Executive low on the implementation of the national budget, especially over inadequate release of funds for capital projects.

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CHI to expand portfolio with N500m new issue

Consolidated Hallmark Insurance Plc has unveiled plans to raise N500 million from the capital market by a way of rights issue, in a bid to strengthen its balance sheet.

Specifically, the firm hopes to raise the fund by offering some of its equity at 50 kobo per share ] its ordinary shares of 50 kobo, when the offer opens on October 16, 2017. The offer, it said, would be done on the basis of one new ordinary share for every six ordinary shares of 50 kobo each held as at the close of business on August 5, 2017.

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NCC woos investors into Nigeria’s $70bn telecoms industry

The Nigerian Communications Commission has described the country as the preferred investment destination for telecommunications investors in Africa, with the industry having grown from $50m to $70bn in 16 years.

The Executive Vice Chairman, NCC, Prof. Umar Danbatta, stated that the recognition of the importance of Information and Communications Technology to national development had prompted the government to prioritise the sector.

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