CBN sells $195m, naira closes at 364/dollar
The Central Bank of Nigeria on Tuesday intervened in the inter-bank foreign exchange market with the sale of $195m. This came just as the naira appreciated to 364 per United States dollar at the parallel market, up from the 365/dollar recorded on Friday.
Figures released by the CBN showed that the regulator offered the total sum of $100m to the wholesale segment, while the Small and Medium Enterprises segment received the sum of $50m. The invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance, among others, received $45m.
Osinbajo launches 60-day action plan on ease of doing business
Vice President Yemi Osinbajo yesterday launched the second National Action Plan on Ease of Doing Business as part of the administration’s medium term Economic Growth and Recovery Plan (EGRP) to build a globally competitive economy. The Vice President had last week presided over an expanded meeting of the Presidential Enabling Business Environment Council (PEBEC) in Abuja.
A statement by PEBEC Secretary and Senior Special Assistant (SSA) Industry, Trade & Investment in the office of the Vice President, Dr. Jumoke Oduwole, yesterday said PEBEC had approved a second 60-day National Action Plan (NAP 2.0) to drive reforms aimed at making Nigeria a progressively easier place to do business.
Shareholders’ liabilities rise as Thomas Wyatt’s losing streak worsens
Shareholders of Thomas Wyatt Nigeria Plc may be required to pay more than the nominal value of their shareholdings if the worsening performance of the company leads to insolvency. The latest audited report and accounts of the company for the year ended March 31, 2016 showed that net liabilities per ordinary share of 50kobo each nearly doubled to 66 kobo in 2016, continuing a decline that had seen the paper-manufacturing company posting worsening losses over the past five years.
Net liabilities per share, a reversal of net assets per share, which shows the underlying value and obligation of shareholders, had risen from 15 kobo in 2012 to 18 kobo in 2013 and 28 kobo and 36 kobo in 2014 and 2015 respectively.
FG asks MDAs to move 60% of 2016 projects to 2018
The Federal Government on Tuesday said its Ministries, Departments and Agencies had been asked to roll over between 50 and 60 per cent of their capital projects to the next fiscal year. The government also said it had so far released the sum of N340bn for capital projects from the 2017 Appropriation Act in addition to the N1.2tn released between January and June this year from the 2016 capital budget.
It also said the N100bn from the recent sukuk bond subscription would be used to fund capital projects, while it planned to increase releases for capital projects in the budget to N440bn by next week. It also announced that revenue amounting to N2.305tn was generated in the first half of this year from the projected N2.542tn revenue for the period, indicating a shortfall of nine per cent.
‘Nigeria needs viable debt market’
Nigeria needs to encourage the development of a robust and viable debt capital market in order to secure a sustainable domestic pool of capital that could support national growth and development.
This was the consensus of stakeholders at the 2017 Nigerian Debt Capital Markets Conference & Awards organised by the FMDQ OTC Securities Exchange in Lagos. The event, which brought together subject matter experts with varying focuses and interests in the Nigerian and global financial markets space, provided a platform to deliberate on strategies and other pre-requisites needed to position the Nigerian debt capital markets to support sustainable economic growth and development.
Pension fund hits N6.6 tr
Pension fund assets under the Contributory Pension Scheme (CPS) has hit N6.6 trillion, the National Pension Commission (PenCom) Acting Director-General, Mrs. Aisha Dahir-Umar, has said. She made this known a paper titled: “Position paper on the Bill for an Act to Amend the Pension Reform Act, 2014 to Exclude Some Government Agencies from the Application of the (CPS) she presented at the Public Hearing organised by the Committee on Pensions, House of Representatives on the proposed controversial pension bills in Abuja.
She lamented that despite these achievements, there had been measures aimed at undermining the pension reform. She said there was need to consolidate the gains of the CPS and avoid policy reversals and that this could undermine public confidence and impact the economy and Federal Government’s change agenda and economic recovery plans. Mrs Dahir-Umar, who said the total pension fund assets hit N6.42 trillion by last March, added that the fund grew by about N30 billion.
Dangote Group explains tax concessions on infrastructure projects from government
Dangote Group has denied claims that the Federal Government’s tax incentive order will make the company benefit 10-year tax holiday after constructing the 35 kilometres Apapa to Oworonshoki long highway end of the Lagos-Ibadan Expressway.
Besides, the Group said that while the company has volunteered to repair the Apapa road as part of its Corporate Social Responsibility (CSR) at no cost to the Federal Government, the construction of Apapa to Oworonshoki long highway would be done at 15 to 25 per cent less than the lowest bid. It would be recalled that the Federal Government said it would give tax relief to private sectors that invest in road construction in the country.
IFC partners Accion, others to deepen financial inclusion
The Vice-President and Treasurer, International Finance Corporation, Jindong Hua, says the financial institution is ready to work with microfinance banks in Nigeria to deepen financial inclusion. He said microfinance banks were crucial to achieving the Sustainable Development Goals of the United Nations, adding that MFBs were closer to the grassroots.
This, Hua said, informed the IFC’s decision to collaborate with Accion Microfinance Bank. He also stressed the importance of financial technology to achieving financial inclusion, disclosing that the IFC had invested over $4bn in 100 countries to boost its support for micro financing institutions.
How entrepreneurs can tap into $50b opportunities in media, by John Momoh
Nigeria provides one of the largest and fastest growing markets for entrepreneurs, according to Channels Media Group Chairman John Momoh. He was the keynote speaker at the Second Fate Annual Alumni Conference held in Lagos. The event had as theme: “Unlocking the growth potential of MSMEs through partnerships and innovation’’. DANIEL ESSIET reports.
For the Chairman, Channels Media Group, Mr. John Momoh, the strategy to remain afloat in the broadcast business and be ahead of others is simple: Transform digitally. He believes every broadcast business needs to be digital to thrive in the economy. Momoh spoke at the Second Fate Annual Alumni Conference in Lagos.
Buhari not committed to peace in Niger Delta, say agitators
Agitators in the Niger Delta yesterday accused the President Muhammadu Buhari government of a lack of commitment to peace in the region. While urging Buhari to take practical steps to ensure sustainable peace in the oil-rich region, they warned against extending military operation to their area.
In a statement, a coalition of Niger Delta groups described Buhari’s Independence Day broadcast as filled with empty promises on his resolve to engage the aggrieved people of region. They expressed regret that despite their resolve to cease fire and maintain peace in the region, the military was bent on launching an operation in the area.
Consolidated Hallmark Insurance to open N500m rights issue Oct. 16
Consolidated Hallmark Insurance Plc is to launch its N500 million capital raising on October 16. Application for the issue will open on Monday, October 16 and end on Wednesday, November 22. Regulatory filing obtained by The Nation indicated that Consolidated Hallmark Insurance will issue 1.0 billion ordinary shares of 50 kobo each to its shareholders at a price of 50 kobo per share.
The rights issue will be pre-allotted on the basis of one new ordinary share for every six ordinary shares held as at the close of business on Monday, August 28. Authorities at the Nigerian Stock Exchange (NSE) and Securities and Exchange Commission (SEC) had earlier approved the new issue after shareholders gave the board the mandate to raise new equity funds.
Experts endorse movable assets’ Act at CIBN forum
The signing into law of the bill for using movable assets as collateral, popularly known as Collateral Registry Act has been described as moves in the right direction, by financial experts. The law, which came on the realization that small business, estimated to have employed over 60 million Nigerians and accounted for 48 per cent of the nation’s Gross Domestic Product (GDP) are stifled by funding, would now allow them borrow from banks with their movable items rather than fixed assets.
The President and Chairman of Council of the Chartered Institute of Bankers of Nigeria (CIBN), Prof. Segun Ajibola, said the development reduced uncertainty, especially for banks that are wary of the level of risks associated with such businesses in less-than-encouraging business environment in the country.