Economic News Update

Business & Economic News: Wednesday, 3rd October, 2018

CBN lists measures to sustain banking sector’s growth

 

The Governor of the Central Bank of Nigeria, Godwin Emefiele, has said the adoption of risk-focused and rule-based regulatory framework; zero tolerance in regulatory framework for data/information rendition/reporting and infractions and strict enforcement of corporate governance principles in banking sector have helped to stabilise the sector.

In a statement, he said expeditious process for rendition of returns by banks and other financial institutions through e-FASS application software, revision and updating of relevant laws for effective corporate governance and ensuring greater transparency and accountability in the implementation of banking laws and regulation had also boosted confidence in the sector.

 

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Economy gains as CBN reforms lift exchange rate

 

The global economy has been in turmoil since the emergence of Donald Trump as United States (US) President. While the American dollar continues to appreciate, other countries’ currencies have been nose diving. Besides, the trade tensions between the US and China are beginning to take a toll on global trade.

For instance, interest rate hike in the US, funds flow reversals away from emerging and frontier markets, appreciation in the value of the United States dollar relative to other emerging markets’ currencies have triggered over 20 per cent loss in value of four emerging market currencies from January to September.

 

Read More

‘Economy losing over N6.16tr from Apapa chaos monthly’

 

The Nigerian economy is currently losing about N600 billion in customs revenue, estimated $10 billion (N3.06 trillion at N306.35/$1) on non-oil export and about N2.5 trillion corporate earnings across the sectors on a yearly basis, latest data from a joint research by the Lagos Chamber of Commerce and Industry (LCCI) and other members of the Organised Private Sector (OPS) has shown.

 

Specifically, the LCCI explained that the data showed a worrisome level of deliberate resistance by some ministries, departments and agencies (MDAs) to implement enabling regulations including the 2017 Presidential Executive Orders relating to the ports.

 

Read More

 

Govt okays 90-day special window for MSME registration

 

The Federal Government has approved a 90-day special window to register businesses at a reduced rate of N5,000 in a bid to further ease the process of registering Micro, Small and Medium Enterprises in the country. Vice-President Yemi Osinbajo, who made the disclosure on Tuesday at the launch of the 19th edition of the National MSMEs Clinics in Enugu, Enugu State, said the special window of 90 days was from October 1 to December 31, 2018.

Osinbajo was quoted in a statement made available by Senior Special Assistant to the President on Media and Publicity, Office of the Vice-President, Laolu Akande, as saying, “It was observed during some of the earlier editions of the MSME Clinics that a lot of MSMEs were finding it difficult to register their businesses as a result of cost.

 

Read More

 

UK, Nigeria partner to strengthen Nigerian capital market

 

Nigeria has become the first capital market to benefit from United Kingdom’s (UK’s) initiative aimed at strengthening the African capital market by unlocking opportunities and building investor’s confidence through improved regulations and compliance with international standards.

Under the programme, FSD Africa, a UK Aid funded non-profit company, will, over a three-year period, provide funding to build  capital market regulators’ capacity across the continent, providing world-class technical assistance, encouraging closer collaboration among regulators and conducting research to support the development of new policies and regulations.

 

Read More

 

NDIC paid N11.5b to creditors of failed banks in 2017, says MD

 

Nigeria Deposit Insurance Corporation (NDIC) paid N11.50 billion to depositors and other creditors of failed financial institutions in the country last year. The Managing Director and Chief Executive, Umaru Ibrahim, stated this during the NDIC Special Day at the Abuja International Trade Fair with the theme ‘Enhancing SMEs in Agribusiness through Innovative Technology’, in partnership with the Abuja Chamber of Commerce and Industry (ACCI), yesterday.

 

Represented by the Director of Enterprise Risk Management, NDIC, Peter Hyelamzha, he said that the corporation had made a full and final liquidation of dividends to depositors of the defunct Eagle and Financial Merchant Banks (in-liquidation), which increased the number of banks for which a final dividend of 100 per cent had been declared to 16 in 2017.

 

Read More

 

FG increases gas flare penalty from N10 to N613

 

The Federal Government has increased the gas flare penalty from N10 per thousand standard cubic feet of gas to $2 or N612.8 (at the official exchange rate of N306.4 to one dollar) per thousand standard cubic feet of gas.

According to the government, the increase is in the case of any firm that produces 10,000 barrels of oil or more, adding that for anyone producing less than 10,000 barrels of oil per day, the penalty has been increased to $0.5 or N153.2 per thousand standard cubic square feet of gas.

 

Read More

 

Mobolurin outlines path to sustainable capital market growth

 

Nigerian governments need to institutionalize a culture of policy stability and certainty and implement policies that will encourage savings and investments in equities funds in order to drive stable economic growth and development.

A foremost investment banker and chairman, Capital Bancorp Plc, Mr Olutola Mobolurin said the current steep decline in the stock market was due majorly to perception of political risks and uncertainties around pre and post election periods as well as the low level of domestic capital available in the equities market.

 

Read More

 

Experts Harp on Adoption of Renewable Energy in Nigeria

 

The search for sustainable energy sources to power homes and businesses in Nigeria is now the focus of mainstream institutions in the country.

The Energy Institute Nigeria, for instance, is set to brainstorm on how to achieve sustainable energy in the country, employing the expertise of experts at a session themed “Energy Dynamics, current issues and policy options.”
The inaugural Energy Sustainability Conference 2018 has a robust list of speakers who will set the benchmark for best practices, debate, trends and solutions for the future of energy in Nigeria.

 

Read More

 

Global regulators restate commitments to investor’s protection

 

Global capital market regulators under the auspices of the International Organisation of Securities Commissions (IOSCO) will this week organise several activities aimed at enhancing investors’ education and protection.

IOSCO-the global body of securities’ regulators, on Monday launched a week-long activities to mark the second annual World Investor Week (WIW), following the success of the maiden edition last year. The maiden edition attracted more than 1000 financial organisations, which showcased their initiatives for promoting investor education and protection across the globe.

 

Read More

 

New MAN president to partner FG on sector’s competitiveness

 

The newly inducted President of the Manufacturers Association of Nigeria (MAN) Ahmed Mansur has pledged to boost the competitiveness of the domestic manufacturing sector through greater collaboration with the Federal Government. Speaking at the association’s yearly general meeting held in Lagos, he applauded Executive Order 003, which aims to increase the level of patronage of made-in-Nigeria goods by public procurement agencies.

 

Mansur who is also an Executive Director of Dangote Industries Limited stated that the Order 003 shows that the present administration is serious in building local productive capacity, adding, “we will work with the federal government to ensure that the Nigerian manufacturing sector is competitive”.

 

Read More

Comment here

Economic News Update

Business & Economic News: Wednesday, 3rd October, 2018

CBN lists measures to sustain banking sector’s growth

 

The Governor of the Central Bank of Nigeria, Godwin Emefiele, has said the adoption of risk-focused and rule-based regulatory framework; zero tolerance in regulatory framework for data/information rendition/reporting and infractions and strict enforcement of corporate governance principles in banking sector have helped to stabilise the sector.

In a statement, he said expeditious process for rendition of returns by banks and other financial institutions through e-FASS application software, revision and updating of relevant laws for effective corporate governance and ensuring greater transparency and accountability in the implementation of banking laws and regulation had also boosted confidence in the sector.

 

Read More

 

Economy gains as CBN reforms lift exchange rate

 

The global economy has been in turmoil since the emergence of Donald Trump as United States (US) President. While the American dollar continues to appreciate, other countries’ currencies have been nose diving. Besides, the trade tensions between the US and China are beginning to take a toll on global trade.

For instance, interest rate hike in the US, funds flow reversals away from emerging and frontier markets, appreciation in the value of the United States dollar relative to other emerging markets’ currencies have triggered over 20 per cent loss in value of four emerging market currencies from January to September.

 

Read More

‘Economy losing over N6.16tr from Apapa chaos monthly’

 

The Nigerian economy is currently losing about N600 billion in customs revenue, estimated $10 billion (N3.06 trillion at N306.35/$1) on non-oil export and about N2.5 trillion corporate earnings across the sectors on a yearly basis, latest data from a joint research by the Lagos Chamber of Commerce and Industry (LCCI) and other members of the Organised Private Sector (OPS) has shown.

 

Specifically, the LCCI explained that the data showed a worrisome level of deliberate resistance by some ministries, departments and agencies (MDAs) to implement enabling regulations including the 2017 Presidential Executive Orders relating to the ports.

 

Read More

 

Govt okays 90-day special window for MSME registration

 

The Federal Government has approved a 90-day special window to register businesses at a reduced rate of N5,000 in a bid to further ease the process of registering Micro, Small and Medium Enterprises in the country. Vice-President Yemi Osinbajo, who made the disclosure on Tuesday at the launch of the 19th edition of the National MSMEs Clinics in Enugu, Enugu State, said the special window of 90 days was from October 1 to December 31, 2018.

Osinbajo was quoted in a statement made available by Senior Special Assistant to the President on Media and Publicity, Office of the Vice-President, Laolu Akande, as saying, “It was observed during some of the earlier editions of the MSME Clinics that a lot of MSMEs were finding it difficult to register their businesses as a result of cost.

 

Read More

 

UK, Nigeria partner to strengthen Nigerian capital market

 

Nigeria has become the first capital market to benefit from United Kingdom’s (UK’s) initiative aimed at strengthening the African capital market by unlocking opportunities and building investor’s confidence through improved regulations and compliance with international standards.

Under the programme, FSD Africa, a UK Aid funded non-profit company, will, over a three-year period, provide funding to build  capital market regulators’ capacity across the continent, providing world-class technical assistance, encouraging closer collaboration among regulators and conducting research to support the development of new policies and regulations.

 

Read More

 

NDIC paid N11.5b to creditors of failed banks in 2017, says MD

 

Nigeria Deposit Insurance Corporation (NDIC) paid N11.50 billion to depositors and other creditors of failed financial institutions in the country last year. The Managing Director and Chief Executive, Umaru Ibrahim, stated this during the NDIC Special Day at the Abuja International Trade Fair with the theme ‘Enhancing SMEs in Agribusiness through Innovative Technology’, in partnership with the Abuja Chamber of Commerce and Industry (ACCI), yesterday.

 

Represented by the Director of Enterprise Risk Management, NDIC, Peter Hyelamzha, he said that the corporation had made a full and final liquidation of dividends to depositors of the defunct Eagle and Financial Merchant Banks (in-liquidation), which increased the number of banks for which a final dividend of 100 per cent had been declared to 16 in 2017.

 

Read More

 

FG increases gas flare penalty from N10 to N613

 

The Federal Government has increased the gas flare penalty from N10 per thousand standard cubic feet of gas to $2 or N612.8 (at the official exchange rate of N306.4 to one dollar) per thousand standard cubic feet of gas.

According to the government, the increase is in the case of any firm that produces 10,000 barrels of oil or more, adding that for anyone producing less than 10,000 barrels of oil per day, the penalty has been increased to $0.5 or N153.2 per thousand standard cubic square feet of gas.

 

Read More

 

Mobolurin outlines path to sustainable capital market growth

 

Nigerian governments need to institutionalize a culture of policy stability and certainty and implement policies that will encourage savings and investments in equities funds in order to drive stable economic growth and development.

A foremost investment banker and chairman, Capital Bancorp Plc, Mr Olutola Mobolurin said the current steep decline in the stock market was due majorly to perception of political risks and uncertainties around pre and post election periods as well as the low level of domestic capital available in the equities market.

 

Read More

 

Experts Harp on Adoption of Renewable Energy in Nigeria

 

The search for sustainable energy sources to power homes and businesses in Nigeria is now the focus of mainstream institutions in the country.

The Energy Institute Nigeria, for instance, is set to brainstorm on how to achieve sustainable energy in the country, employing the expertise of experts at a session themed “Energy Dynamics, current issues and policy options.”
The inaugural Energy Sustainability Conference 2018 has a robust list of speakers who will set the benchmark for best practices, debate, trends and solutions for the future of energy in Nigeria.

 

Read More

 

Global regulators restate commitments to investor’s protection

 

Global capital market regulators under the auspices of the International Organisation of Securities Commissions (IOSCO) will this week organise several activities aimed at enhancing investors’ education and protection.

IOSCO-the global body of securities’ regulators, on Monday launched a week-long activities to mark the second annual World Investor Week (WIW), following the success of the maiden edition last year. The maiden edition attracted more than 1000 financial organisations, which showcased their initiatives for promoting investor education and protection across the globe.

 

Read More

 

New MAN president to partner FG on sector’s competitiveness

 

The newly inducted President of the Manufacturers Association of Nigeria (MAN) Ahmed Mansur has pledged to boost the competitiveness of the domestic manufacturing sector through greater collaboration with the Federal Government. Speaking at the association’s yearly general meeting held in Lagos, he applauded Executive Order 003, which aims to increase the level of patronage of made-in-Nigeria goods by public procurement agencies.

 

Mansur who is also an Executive Director of Dangote Industries Limited stated that the Order 003 shows that the present administration is serious in building local productive capacity, adding, “we will work with the federal government to ensure that the Nigerian manufacturing sector is competitive”.

 

Read More

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