Banks to Pool N25bn Annually to Support Export, Import Substitution
The banking industry has committed to contribute five percent of its profit-after-tax (PAT) towards the support of eligible and bankable export and import substitution projects.
Based on the industry profit and loss account in the past three years, and given average five percent VAT charge for the period, it is estimated that about N25 billion will be realised from their annual contributions. While the scheme will commence in 2017, it will be bankrolled from banks’ 2016 financials initially.
AMCON takes over Arik Air
The Asset Management Company of Nigeria (AMCON) has announced the takeover of Arik Air. Arik air is indebted to AMCON to the tune of N135 billion. In a press statement yesterday, AMCON announced the sack of the management of Arik Air and replaced it with a new one. According to AMCON, Captain Roy Ukpebo Ilegbodu, a veteran aviation expert, under the receivership of Mr. Oluseye Opasanya (SAN), will now manage Arik Airline
Minister of State for Aviation, Hadi Sirika, expressed optimism that the takeover of Arik “will stabilise the operations of the airline.” He said AMCON’s action “will enhance the long term economic value of Arik Air and revitalise the airline’s ailing operations as well as sustain safety standards, in view of Arik Air’s pivotal role in the Nigerian aviation sector.”
Fed Govt sets guidance for $1b Eurobond
The Federal Government has set price guidance for a $1 billion 15-year bullet bond at 8.125 per cent to 8.375 per cent, according to a lead. The notes were initially marketed at 8.50 per cent area. Order books are in excess of $4.5 billion.
The 144A/Reg S notes due February 2032 are today’s business via joint book-runners Citigroup and Standard Chartered, with Stanbic IBTC Capital acting as financial adviser.
FMDQ Adopts S&P Nigeria Sovereign Bond Index
As part of effort to improve price discovery and transparency in the Nigerian financial markets, FMDQ OTC Securities Exchange has formalised its partnership with S&P Dow Jones Indices (SPDJI) through the signing of a memorandum of understanding (MoU) for the development and publication of co-branded fixed income indices in the Nigerian financial market.
FMDQ embarked on the journey towards providing reliable and credible benchmarks in 2014 with the launch of the FMDQ FGN Bond Index. Following the launch, the OTC Securities Exchange continued to identify ways to improve the existing index and align it with international best standards as set out in the International Organisation of Securities Commission (IOSCO) Principles for Financial Benchmarks.
Budget 2017: FG to reconstruct roads with economic benefit
Minster of Power, Works and Housing, Babatunde Fashola, has said the Federal Government will focus on the completion of roads with economic benefit this year. Speaking at the budget defence for his ministry at the House of Representatives, he said the 2017 budget of the Works component was based on six priority areas that will focus on critical economic routes with heaviest traffic.
He said N150.4 billion or 52 per cent of capital budget was proposed for such routes, while the second priority roads or agriculture producing areas would gulp N43 billion or 17.8 per cent of the capital expenditure. He also said roads related to petroleum products haulage as well as another set of roads dealing with agriculture producing locations would take N8.9 billion or three per cent of the budget.
Jaiz Bank’s Listing Adds N37bn to NSE Market Capitalisation
The Nigerian Stock Exchange (NSE) yesterday recorded the second listing for the year as it admitted 29.464 billion ordinary shares of Jaiz Bank Plc on its daily official list at N1.25 per share by introduction. The listing added about N37 billion to the market capitalisation of the NSE. Shareholders of the bank had unanimously endorsed the listing of the shares at an extra-ordinary general meeting in November, 2016.
Speaking at the listing ceremony, the Managing Director/Chief Executive Officer of Jaiz Bank, Hassan Usman said it would promote liquidity for the bank’s shares, enhance value of the company and increased transparency.
Real sector’s unending woes
The real sector is under tremendous pressure. Already clobbered by the dearth of supportive infrastructure, particularly power supply, rising inflation, interest and exchange rates may have added a more disturbing dimension to its woes.
For instance, inflation rate is 18.55 per cent, according to the National Bureau of Statistics (NBS). Interest rate hovers between 14 and 20 per cent. The exchange rate of the naira to the dollar is at a record low of N306 and N497 at the official and parallel markets. Unemployment has risen to 13.3 per cent.
FG raises $1bn eurobond to finance 2016 budget
The Federal Government, Thursday, successfully raised $1 billion in its return to the Eurobond market in what signifies global investors’ endorsement of the Federal Government’s economic recovery initiatives. The issue was 750 per cent oversubscribed, underscoring how buoyant investor appetite for scarce frontier African paper, despite recent selloffs in emerging market assets. The global medium term note programme of $1,000,000,000 is due to mature in 2032.
It was a day of international acknowledgement and endorsement of the Debt Management Office (DMO) continued strategy in a peculiar challenging local and global economic landscape. The DMO defied all known predictions by international financial and capital market analysts to prove that Nigeria’s economy remains resilient and robust in the international capital market during the issuance of the nation’s first 15-year maturity $1 billion Eurobond.
Bank promotes 300, disengages others
Skye Bank Plc said it has effected career progression for more than 300 members of its workforce, after its 2016 yearly performance review exercise. This is coming few days after four of the bank’s executive directors resigned, which the financial institution also called normal and an opportunity to let others contribute to the growth of the lender.
According to the bank, the promotion cuts across several cadres of staff up to the managerial and in line with the bank’s effort to reward staff who performed creditably in their various roles during the review period.
IPMAN: fuel scarcity imminent
The Petroleum Marketers Association of Nigeria (IPMAN) yesterday raised the alarm that petrol may soon be scarce as private depot owners are now selling the product above pump price.
Its Vice National President, Alhaji Abubakar Maigandi, who disclosed this to The Nation on phone yesterday, added that owing to the prevailing situation in the depots nationwide, marketers in far areas may increase their pump prices.
Banks to inject N25bn to boost SMEs
The Bankers Committee rose from a meeting yesterday in Abuja with a resolve to inject N25 billion annually to boost Small and Medium Enterprises (SMEs), which engage in exports, especially in agriculture. The Bankers Committee, under the Chairmanship of the Central Bank Governor, Godwin Emefiele, also said plans were afoot to spread cashless banking to the remaining 30 states that are yet to migrate to the scheme. The committee also maintained that all ponzi schemes remain fraudulent and dangerous, even as it said it was studying the emerging virtual currencies like bitcoins.
Speaking at the event, the Director of Banking Supervision Department of the CBN, Mohammed Abdullahi, said the N25 billion is expected to come from five per cent of each bank’s Profit After Tax (PAT) savings, adding that the initiative would commence in the 2016 result. He added that the Bankers Committee was interested in diversifying the economy, especially in exports, so that the country could earn foreign exchange and generate employment.
Diamond Bank Customers In Plateau Threaten To Close Down Accounts
Some customers of Diamond Bank in Plateau on Thursday threatened to close down their accounts over what they described as “frivolous deductions’’. The News Agency of Nigeria (NAN) reports that virtually all the bank’s branches within the Jos-Bukuru axis were inundated with such threats as customers gathered to inquire about the reasons for the deductions. Some of the customers told NAN they were shocked and surprised by the recent turn of events at the bank.
Oil and Gas Free Zones attract $20bn investments, create 200,000 jobs
The Federal Government has said that Oil and Gas Free Zones have created about 200,000 direct and indirect jobs, apart from attracting $20 billion in investments. This was disclosed yesterday by the Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah, at a stakeholders forum organised by the Oil and Gas Free Zones at Onne, Rivers State.
The Minister, who was represented at the occasion by the Minister of State, Industry, Trade and Investments, Hajia Aisha Abubakar, explained that the Oil and Gas sector also facilitated the transfer of skills and technology to Nigerians in the oil and gas sector.
10,000 youths, others to get Ogun, CBN aid
No fewer than 10,000 youths and other small-scale farmers are to benefit from the Ogun State/Central Bank of Nigeria (CBN) Anchor Borrowers Programme aimed at creating employment for youths and boosting agricultural production and food security in the state.
The state Coordinator and Special Assistant to the Governor on Agriculture, Mr. Tosin Ademuyiwa, disclosed this in Abeokuta at the flag-off of the programme to empower the youths and others in the 20 Local Government Areas of the state.
Capital market operators apprehensive over high yields on FGN bonds
STAKEHOLDERS in the Nigerian capital market have criticised the high interest rate on FGN bonds saying it discourages investment in productive activities. They spoke at a one day seminar organised by the Securities and Exchange Commission, SEC, to deliberate on the implications of the 2017 budget to the capital market.
They also called on the federal government to make concerted effort to address inconsistencies in the foreign exchange regime as it adversely affects private sector operations.
Airlines unable to repatriate ticketing cash from Nigeria, others
Airlines are complaining that dollar scarcity has made it difficult for them to repatriate ticketing cash from Nigeria, Egypt, among other countries.
Ethiopian Airlines yesterday said it could not get cash out from some African countries, lamenting that it was unable to repatriate about $220 million held in local currency in Nigeria, Egypt and some other African countries because of foreign exchange shortages in the countries.
Nigeria listed among world’s most powerful economies by 2030
Nigeria has been listed among thirty two countries that will be world’s most powerful economies by the by 2030. The release by PricewaterhouseCoopers, one of the world’s largest professional-services firms, in its predictions for the most powerful economies in the world by 2030.
The report, titled “The long view: how will the global economic order change by 2050?” ranked 32 countries by their projected global gross domestic product by purchasing power parity.
Jaiz Bank lists N37b shares, to begin dividend payment
Jaiz Bank Plc, Nigeria’s first non-interest commercial bank, recorded another milestone yesterday as the first non-interest financial institution to be listed on the Nigerian Stock Exchange (NSE) with the admission of the entire issued share capital of the bank to the main board of the Exchange.
The listing of the Jaiz Bank’s 29.46 billion ordinary shares of 50 kobo each at N1.25 per share lifted the market capitalisation of quoted companies by N36.83 billion. The listing was done by way of introduction, implying that Jaiz Bank’s shares would now be available initially through the secondary market.
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