Economic News Update

Economic News Update: 15th February, 2017

news-brief

FMDQ to admit first listing of FGN Eurobonds

The FMDQ Over-the-Counter Securities Exchange is set to admit the pioneer listing of the $1bn Federal Government of Nigeria Eurobond to its platform. The move, according to the Exchange, is in consolidation of the strategic and value-adding initiatives spearheaded by FMDQ platform in developing the Nigerian financial market.

The FGN, on February 9, 2017, announced the pricing of its offering of $1bn notes (Eurobonds) under its $1bn Global Medium-Term Note Programme. Following a series of engagements by FMDQ on the importance of promoting and supporting economic development in the country through the opening of Eurobonds to the domestic DCM via the OTC Exchange’s platform, the development which would set the pace for global competitiveness and deepen the Nigerian financial markets, was in tandem with the mandate of the FMDQ, the Exchange said.

Read More

Fitch Rates Nigeria’s Eurobond ‘B+’

Fitch Ratings has assigned Nigeria’s $1 billion 15-year 7.875% senior unsecured notes a final rating of ‘B+’. The final rating replaces the expected rating that Fitch assigned on 6 February 2017. According to a statement, the rating was in line with Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘B+’, which has a Negative Outlook.

“The rating is sensitive to changes in Nigeria’s Long-Term Foreign-Currency IDR. On 25 January 2017, Fitch affirmed Nigeria’s Long-Term Foreign-Currency IDR at ‘B+’ and revised the Outlook to Negative from Stable,” it added.

Read More

NASD OTC eyes N166m new equity funds from shareholders

NASD OTC Securities Exchange Plc, the over-the-counter platform for trading in unlisted public securities, is concluding arrangements to float a rights issue to raise N165.5 million new equity funds from its shareholders.

It plans to issue 111.05 million ordinary shares to existing shareholders at a price of N1.49 per share. The rights’ shares would be pre-allotted on the basis of one new share for every three ordinary shares currently held.

Read More

U.K. inflation rate rises less than expected

U.K. inflation picked up less than economists forecast in January as clothing-store discounts kept the rate from reaching the Bank of England’s target. The increase in the rate to 1.8 percent from 1.6 percent in December fell short of the 1.9 percent estimated in a Bloomberg survey. The pound weakened and traders pared bets on a Bank of England interest-rate hike by the end of 2017.

While less than anticipated, inflation is still running at the fastest pace in more than two years. Rising fuel costs coupled with a weaker pound are set to push it above the BOE’s 2 percent goal soon, with some economists forecasting it will hit 3 percent by the end of the year. In a sign of the upward pressure, annual growth in factory input costs surged to the fastest since 2008.

Read More

Militancy deprived Nigeria of $100bn in 2016 –Kachikwu

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said the country lost as much as $100bn in revenue last year as attacks by militants in the oil-rich Niger Delta cut crude output to a record low.

Kachikwu, who stated this on Tuesday in his monthly broadcast posted on his Facebook page with the title: ‘Oil sector militancy challenges: Road map to closure’, said the nation’s oil production fell by as high as one million barrels per day sometimes last year.

Read More

Stockbrokers’ institute plans new certification programme

The Chartered Institute of Stockbrokers (CIS), the statutory self regulatory body that regulates the practice of stockbroking, has concluded arrangement to commence a new certification policy that would enable an aspiring stockbroker to specialise in a particular branch of trading.

Under the current professional certification, every stockbroker must pass all the courses to become certified and this certification qualifies him to trade in all segments of the market.

Read More

NAICOM Confirms Pius Apere, MD/CEO of Linkage Assurance

The National Insurance Commission (NAICOM) has confirmed the appointment of Pius Apere as the substantive Managing Director/ Chief Executive Officer of Linkage Assurance Plc. Apere was appointed acting managing director on January 1, 2017 following the exit of former managing director of the company.

A Nigerian/United Kingdom trained insurer and actuary, Apere will bring to bear his wealth of experience garnered over the last 30-years on the Linkage brand for more value creation for shareholders and the insuring public.

Read More

FG closes 20,000 bank accounts, moves N5.2tn into TSA …to expand TSA scope

Since the commencement of the Treasury Single Account in September 2015, over 20,000 accounts with Deposit Money Banks belonging to Federal Government Ministries, Departments and Agencies have been closed with a total sum of N5.24tn moved into the TSA. The Accountant-General of the Federation, Ahmed Idris, gave the figures on Tuesday in Abuja at the opening session of a two-day retreat on the TSA.

The event, which was attended by Vice President Yemi Osinbajo; Minister of Finance, Mrs. Kemi Adeosun; and Secretary to the Government of the Federation, Mr. Babachir Lawal, among other top government officials, had as its theme: ‘One year anniversary of the Treasury Single Account: Benefits, challenges and way forward’.

Read More

FUTA VC, bursar arraigned for alleged N156.9m fraud

The Economic and Financial Crimes Commission (EFCC) yesterday arraigned Federal University of Technology, Akure (FUTA) Vice-Chancellor Prof. Adebiyi Daramola and Bursar Ayodeji Oresegun at the Ondo State High Court in Akure for alleged N156.9million fraud. Daramola and Oresegun were invited in October by the anti-graft agency, following a petition by non-teaching staff.

The embattled VC was arraigned on a nine-count charge and the bursar on a two count charges. Daramola was alleged to have obtained N17.3million for accommodation allowances from 2012 till last year whereas he was living in government quarters.

Read More

Anchor Insurance Pays ‘Loss of Employment’ Claims to 120 Job Losers

Against the backdrop of economic recession plaguing Nigeria’s economy, culminating in loss of jobs by many, insurance sector operators said they are handy to bring succor to affected employees, who acted wisely to take insurance cover against job loss.

Anchor Insurance is one of such insurance firms as it has recently in this regard put smiles on the faces of 120 workers from and outside financial institutions who were relieved of their duties as a result of restructuring exercise embarked by their employers to survive the recession.

Read More

Arik suspends flights to London, Johannesburg

The new management of Arik Air has announced the suspension of its international flight operations to enable the carrier find permanent solutions to the problem of delays and cancellation of flights. The airline said the decision was aimed at realigning operations and refocusing on satisfying its domestic, West African and other international passengers.

The management said in a statement on Tuesday, “This is to bring to the notice of our travelling public our intention to suspend our international flight operations to enable us find permanent solution (to the problem) facing our passengers as it will enable us to carry out a thorough assessment of the situation.

Read More

N1.2bn Share Fraud: NSE Absolves Itself of Negligence

The Nigerian Stock Exchange (NSE) has absolved itself of negligence and complicity in the misappropriation of N1.2 billion being proceeds of shares of a former Chief Executive Officer of Ecobank Transnational Incorporated (ETI), Mr. Arnold Ekpe.

Partnership Securities Limited (PSL), which is a registered member of the NSE, sold Ekpe’s ETI shares valued at valued at N1.2 billion without remitting the proceeds into his account. Lawyers to Ekpe, Sofunde Osakwe Ogundipe & Belgore, had blamed the NSE’s negligence for fraud.

Read More

W’Bank: In Lagos, Two Out of Three Persons Live in Slums

A new World Bank report has stated that in Lagos, two out of three people live in slums. The report released on Monday also noted that Africa’s cities had been growing in population, stating that adding the size of another Nigeria to cities in the continent, by 2025, would have a critical role to play in their countries’ economic growth.

According to the report, improving conditions for people and businesses in African cities by aggressively investing in infrastructure and reforming land markets would be the key to accelerating economic growth, adding jobs, and improving city competitiveness.

Read More

Importers kick against transfer of containers to Ikorodu terminal

Importers under the aegis of the Nigerian Importers Integrity Association (NIIA), has described as unnecessary the move to transfer long-standing (overtime) containers to off-dock facilities especially the Ikorodu Lighter Terminal (IKLT) in Lagos, at a time when the nation’s seaports are operating well below capacity.

The President, NIIA, Godwin Onyekazi, who spoke against the backdrop of the clamour by some clearing agents at Ikorodu for the Nigerian Ports Authority (NPA) to transfer such containers from the main port to IKLT, argued that there is “ample space in the main ports”.

Read More

DMO Engenders Confidence with Eurobond Success

It is no longer news that the Nigerian economy entered recession last year. Also, it is no longer news that the federal government is working assiduously to ensure the economy recovers this year. However, what is news is that contrary to the thinking of pessimists, investors are more bullish on the future prospects of the economy given the determination of the federal government to ensure that it recovers fully and impacts positively on the lives of the citizenry.

Read More

Reps wade into JPS, Honeywell flour seaport rift

The lingering crisis between Josephdam Port Services (JPS) and Honeywell Flour Mills, has attracted the attention of the legislators, as the House of Representatives Committee on Privatisation and Commercialisation recently intervened and called on both parties to settle amicably. The duo have been at loggerheads over the request by JPS that Honeywell should remove its purported idle gantries situated in its terminal to allow for expansion projects as stipulated by the port concession agreement.

The Committee members, led by its Chairman, Shadimu Mutiu, were at Tin Can Ports to examine the situation, and sued for amicable resolution and sacrifices to make peace reign at the port.

Read More

Comment here

Economic News Update

Economic News Update: 15th February, 2017

news-brief

FMDQ to admit first listing of FGN Eurobonds

The FMDQ Over-the-Counter Securities Exchange is set to admit the pioneer listing of the $1bn Federal Government of Nigeria Eurobond to its platform. The move, according to the Exchange, is in consolidation of the strategic and value-adding initiatives spearheaded by FMDQ platform in developing the Nigerian financial market.

The FGN, on February 9, 2017, announced the pricing of its offering of $1bn notes (Eurobonds) under its $1bn Global Medium-Term Note Programme. Following a series of engagements by FMDQ on the importance of promoting and supporting economic development in the country through the opening of Eurobonds to the domestic DCM via the OTC Exchange’s platform, the development which would set the pace for global competitiveness and deepen the Nigerian financial markets, was in tandem with the mandate of the FMDQ, the Exchange said.

Read More

Fitch Rates Nigeria’s Eurobond ‘B+’

Fitch Ratings has assigned Nigeria’s $1 billion 15-year 7.875% senior unsecured notes a final rating of ‘B+’. The final rating replaces the expected rating that Fitch assigned on 6 February 2017. According to a statement, the rating was in line with Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘B+’, which has a Negative Outlook.

“The rating is sensitive to changes in Nigeria’s Long-Term Foreign-Currency IDR. On 25 January 2017, Fitch affirmed Nigeria’s Long-Term Foreign-Currency IDR at ‘B+’ and revised the Outlook to Negative from Stable,” it added.

Read More

NASD OTC eyes N166m new equity funds from shareholders

NASD OTC Securities Exchange Plc, the over-the-counter platform for trading in unlisted public securities, is concluding arrangements to float a rights issue to raise N165.5 million new equity funds from its shareholders.

It plans to issue 111.05 million ordinary shares to existing shareholders at a price of N1.49 per share. The rights’ shares would be pre-allotted on the basis of one new share for every three ordinary shares currently held.

Read More

U.K. inflation rate rises less than expected

U.K. inflation picked up less than economists forecast in January as clothing-store discounts kept the rate from reaching the Bank of England’s target. The increase in the rate to 1.8 percent from 1.6 percent in December fell short of the 1.9 percent estimated in a Bloomberg survey. The pound weakened and traders pared bets on a Bank of England interest-rate hike by the end of 2017.

While less than anticipated, inflation is still running at the fastest pace in more than two years. Rising fuel costs coupled with a weaker pound are set to push it above the BOE’s 2 percent goal soon, with some economists forecasting it will hit 3 percent by the end of the year. In a sign of the upward pressure, annual growth in factory input costs surged to the fastest since 2008.

Read More

Militancy deprived Nigeria of $100bn in 2016 –Kachikwu

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said the country lost as much as $100bn in revenue last year as attacks by militants in the oil-rich Niger Delta cut crude output to a record low.

Kachikwu, who stated this on Tuesday in his monthly broadcast posted on his Facebook page with the title: ‘Oil sector militancy challenges: Road map to closure’, said the nation’s oil production fell by as high as one million barrels per day sometimes last year.

Read More

Stockbrokers’ institute plans new certification programme

The Chartered Institute of Stockbrokers (CIS), the statutory self regulatory body that regulates the practice of stockbroking, has concluded arrangement to commence a new certification policy that would enable an aspiring stockbroker to specialise in a particular branch of trading.

Under the current professional certification, every stockbroker must pass all the courses to become certified and this certification qualifies him to trade in all segments of the market.

Read More

NAICOM Confirms Pius Apere, MD/CEO of Linkage Assurance

The National Insurance Commission (NAICOM) has confirmed the appointment of Pius Apere as the substantive Managing Director/ Chief Executive Officer of Linkage Assurance Plc. Apere was appointed acting managing director on January 1, 2017 following the exit of former managing director of the company.

A Nigerian/United Kingdom trained insurer and actuary, Apere will bring to bear his wealth of experience garnered over the last 30-years on the Linkage brand for more value creation for shareholders and the insuring public.

Read More

FG closes 20,000 bank accounts, moves N5.2tn into TSA …to expand TSA scope

Since the commencement of the Treasury Single Account in September 2015, over 20,000 accounts with Deposit Money Banks belonging to Federal Government Ministries, Departments and Agencies have been closed with a total sum of N5.24tn moved into the TSA. The Accountant-General of the Federation, Ahmed Idris, gave the figures on Tuesday in Abuja at the opening session of a two-day retreat on the TSA.

The event, which was attended by Vice President Yemi Osinbajo; Minister of Finance, Mrs. Kemi Adeosun; and Secretary to the Government of the Federation, Mr. Babachir Lawal, among other top government officials, had as its theme: ‘One year anniversary of the Treasury Single Account: Benefits, challenges and way forward’.

Read More

FUTA VC, bursar arraigned for alleged N156.9m fraud

The Economic and Financial Crimes Commission (EFCC) yesterday arraigned Federal University of Technology, Akure (FUTA) Vice-Chancellor Prof. Adebiyi Daramola and Bursar Ayodeji Oresegun at the Ondo State High Court in Akure for alleged N156.9million fraud. Daramola and Oresegun were invited in October by the anti-graft agency, following a petition by non-teaching staff.

The embattled VC was arraigned on a nine-count charge and the bursar on a two count charges. Daramola was alleged to have obtained N17.3million for accommodation allowances from 2012 till last year whereas he was living in government quarters.

Read More

Anchor Insurance Pays ‘Loss of Employment’ Claims to 120 Job Losers

Against the backdrop of economic recession plaguing Nigeria’s economy, culminating in loss of jobs by many, insurance sector operators said they are handy to bring succor to affected employees, who acted wisely to take insurance cover against job loss.

Anchor Insurance is one of such insurance firms as it has recently in this regard put smiles on the faces of 120 workers from and outside financial institutions who were relieved of their duties as a result of restructuring exercise embarked by their employers to survive the recession.

Read More

Arik suspends flights to London, Johannesburg

The new management of Arik Air has announced the suspension of its international flight operations to enable the carrier find permanent solutions to the problem of delays and cancellation of flights. The airline said the decision was aimed at realigning operations and refocusing on satisfying its domestic, West African and other international passengers.

The management said in a statement on Tuesday, “This is to bring to the notice of our travelling public our intention to suspend our international flight operations to enable us find permanent solution (to the problem) facing our passengers as it will enable us to carry out a thorough assessment of the situation.

Read More

N1.2bn Share Fraud: NSE Absolves Itself of Negligence

The Nigerian Stock Exchange (NSE) has absolved itself of negligence and complicity in the misappropriation of N1.2 billion being proceeds of shares of a former Chief Executive Officer of Ecobank Transnational Incorporated (ETI), Mr. Arnold Ekpe.

Partnership Securities Limited (PSL), which is a registered member of the NSE, sold Ekpe’s ETI shares valued at valued at N1.2 billion without remitting the proceeds into his account. Lawyers to Ekpe, Sofunde Osakwe Ogundipe & Belgore, had blamed the NSE’s negligence for fraud.

Read More

W’Bank: In Lagos, Two Out of Three Persons Live in Slums

A new World Bank report has stated that in Lagos, two out of three people live in slums. The report released on Monday also noted that Africa’s cities had been growing in population, stating that adding the size of another Nigeria to cities in the continent, by 2025, would have a critical role to play in their countries’ economic growth.

According to the report, improving conditions for people and businesses in African cities by aggressively investing in infrastructure and reforming land markets would be the key to accelerating economic growth, adding jobs, and improving city competitiveness.

Read More

Importers kick against transfer of containers to Ikorodu terminal

Importers under the aegis of the Nigerian Importers Integrity Association (NIIA), has described as unnecessary the move to transfer long-standing (overtime) containers to off-dock facilities especially the Ikorodu Lighter Terminal (IKLT) in Lagos, at a time when the nation’s seaports are operating well below capacity.

The President, NIIA, Godwin Onyekazi, who spoke against the backdrop of the clamour by some clearing agents at Ikorodu for the Nigerian Ports Authority (NPA) to transfer such containers from the main port to IKLT, argued that there is “ample space in the main ports”.

Read More

DMO Engenders Confidence with Eurobond Success

It is no longer news that the Nigerian economy entered recession last year. Also, it is no longer news that the federal government is working assiduously to ensure the economy recovers this year. However, what is news is that contrary to the thinking of pessimists, investors are more bullish on the future prospects of the economy given the determination of the federal government to ensure that it recovers fully and impacts positively on the lives of the citizenry.

Read More

Reps wade into JPS, Honeywell flour seaport rift

The lingering crisis between Josephdam Port Services (JPS) and Honeywell Flour Mills, has attracted the attention of the legislators, as the House of Representatives Committee on Privatisation and Commercialisation recently intervened and called on both parties to settle amicably. The duo have been at loggerheads over the request by JPS that Honeywell should remove its purported idle gantries situated in its terminal to allow for expansion projects as stipulated by the port concession agreement.

The Committee members, led by its Chairman, Shadimu Mutiu, were at Tin Can Ports to examine the situation, and sued for amicable resolution and sacrifices to make peace reign at the port.

Read More

Comment here