CBN queries banks for supplying inaccurate forex data
The Central Bank of Nigeria on Sunday said it had issued queries to some Deposit Money Banks that provided inaccurate information on foreign exchange to end users. The apex bank said this in a statement issued by its Acting Director, Corporate Communications Department, Mr. Isaac Okoroafor.
The statement did not provide the identities of the banks nor their number, but added that some of the affected banks had sent in their responses.
Capital market: Expectations for new issues in 2017
THE Nigerian capital market last year experienced few new issues apparently for the downturn in economic activity which affected quoted companies on the Nigerian Stock Exchange, NSE, from raising fresh capital to meeting challenging needs. The Nigerian equity market declined massively last year as companies’ revenue and bottom line dropped due to recession.
Petrol Scarcity Looms as Product Sells for N142 per Litre in Depots
Despite the pledge by oil marketers to support the federal government’s efforts in ensuring sustained and stable supply of petrol at the official pump price of N145 per litre, there are indications of imminent scarcity as some depot owners have jerked the ex-depot price to N142 per litre, against government’s approved N123.28 –N133.28 per litre ex-depot price band.
Reps summon 50 firms over alleged fraudulent payment
Fifty more brokerage firms have been summoned by the House of Representatives over alleged multi-billion naira cash payment to government officials by insurance firms, The PUNCH learnt on Sunday. An ad hoc committee of the House is investigating the alleged shady deals, which involved the payment of huge cash into private pockets as “insurance premium.”
The transactions took place between 2013 and 2015. The committee, which is chaired by a member of the All Progressives Congress from Ogun State, Mr. Adekunle Akinlade, is probing allegations that government officials colluded with insurance firms to sign fraudulent policies, inflated the premium and later remitted the money to the officials.
China Emerges Nigeria’s Leading Source of Imports with $1.6bn
It emerged at the weekend that China is now Nigeria’s leading source of imported goods with an import value of $1.6 billion (N478 billion) equivalent to 20 per cent of Nigeria’s total imports. This is, according to the merchandise trade data released by the Nigerian Bureau of Statistics (NBS) in its latest foreign trade statistics for the third quarter of 2016.
According to the NBS data, Belgium emerged the second largest source of imports in the review period, with an import value of $1.1 billion (N331billion). The NBS data put the total value of trade at N4.72 trillion, representing an increase of 16 per cent on the preceding quarter.
Investor recovers N1.5m illegal sale of GTB shares
THE investor protection initiative of the Securities and Exchange Commission (SEC) received a boost last weekend when an investor, Rev. Fr. Samuel Ukeje Ikechukwu received a cheque for the sum of N1.5million for his share that was illegally sold. According to Ukeje who is resident in Italy, he bought the Guaranty Trust Bank, GTB shares eight years ago through Cashville Investment and Securities but was surprised to learn that the shares had been sold by the company without his knowledge.
Dangote plans more investment in Zambia
Africa’s richest person, Aliko Dangote, has expressed the desire to further consolidate his existing investments in Zambia and other African countries by exploring opportunities in the energy and agricultural sectors.
Dangote was speaking when he paid a courtesy call on the Zambian President, Edgar Lungu, to express his gratitude for the enabling environment that the country was offering investors at every level.
‘We Need Policy Re-Alignment to Support Our External Reserve’
As part of measure to improve Nigeria’s external reserves, a financial expert has advocated the need for clarity and proper re-alignment of monetary policies of the Central Bank of Nigeria (CBN) and what the federal government plans to do to grow the reserve and improve the pace of economic growth.
The advice was given by the Executive Director of FSDH Merchant Bank, Olufunsho Olusanya, during the sent-off party organised in honour of the out-going Managing Director, Mr. Belo-Osagie.
Foreign firms throng Nigerian insurance sector for green market – NIA
WITH matured markets and intense competition in the developed economy, foreign companies have began to throng the country’s insurance sector for virgin market.The nation’s insurance industry in the last few years has been largely shaped by the influx of foreign investors, and growing enquiries by many others to own equity stake in local operators.
‘Reforming Oil, Power, Mining, Aviation Sectors Key to Economic Recovery’
For the federal government to take the nation’s economy out of its recession and place it on a sustainable growth path, there must policy reforms in oil, power, mining, aviation sectors. The is the assertion of analysts at Afrinvest (W.A) Limited, a Lagos based investment banking firm in its Economic and Financial Market Outlook 2017 report obtained at the weekend.
PENGASSAN rejects NLNG Act amendment
Oil workers under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria have said that the proposed plan by the National Assembly to amend the Nigeria Liquefied Natural Gas (Fiscal Incentives, Guarantees and Assurances) Act will affect about 18,000 jobs in the sector.
The association made its stance known during its National Executive Committee meeting in Abuja.
Cost of Funds Ease on Liquidity Injection
The Nigerian Interbank Offered Rate (NIBOR) dropped 6.5 percentage points to five percent on average last Friday as the money market was awash with cash from budgetary disbursal and coupon payment on matured bonds.
The cost of borrowing among commercial lenders had closed at 11.5 per cent the preceding Friday due to drop in liquidity in the market necessitated by bond and treasury bills sales.
NIA in talks with CBN, Customs on marine insurance
THE Nigerian Insurers Association (NIA) is currently discussing with the Central Bank of Nigeria (CBN) and Nigeria Customs Service (NSC) on plans to increase insurance companies’ participation in marine insurance.
Director-General of NIA, Mr Sunday Thomas who spoke to Vanguard Insurance in Abuja on Thursday, confirmed that the industry has opened discussions with the CBN for insurance companies to get relevant information that would enable them engage the operators in the maritime industry for marine insurance business.
China Exim bank approves N408bn for Lagos-Ibadan rail project
About a week after the Federal Government announced the release of N72bn as its counterpart fund for the construction of the Lagos-Ibadan standard gauge rail line, the Export-Import Bank of China has approved $1.275bn (about N408bn) loan for the project on behalf of the Chinese government.
While Nigeria is to bear 15 per cent of the cost of the project, China will shoulder 85 per cent for the first phase fast rail that will eventually terminate in Kano.
NAICOM calls for replacement of Linkage Assurance MD designate
NATIONAL Insurance Commission, NAICOM, has given two weeks ultimatum to Linkage Assurance Plc to forward a name to the Commission to replace the Managing Director designate of the company, Dr. Pius Apere.
A source in the Commission told Vanguard Insurance that the regulatory body allegedly declined to confirm the MD designate on grounds that his nomination did not satisfy some requirements of the relevant regulatory provisions.
Vehicle ban: Nigeria loses N1.36bn in one month
One month after the Federal Government prevented imported vehicles from entering Nigeria through the land borders, stakeholders across board have started counting their losses. Our correspondent gathered at the Seme border that the losses ran into billions of naira on the part of the government and the importers.
On Monday, December 5, the Nigeria Customs Service announced a ban on the importation of vehicles through the land borders in a move that followed a previous ban on the importation of rice through the same route.
FOREX: We Don’t Fix Rates Nor Deal Directly With Bank Customers, Says CBN
Following media reports over alleged irregularities in the purchase figures of foreign exchange, the Central Bank of Nigeria (CBN) on Sunday reacted saying it does not allocate forex neither does it deal directly with bank customers.
The apex bank further clarified that, even though its new foreign exchange policy prioritises FOREX sales to manufacturers, agriculture, plant and machinery, critical raw materials, among others it does not fix FOREX rates for transactions by individuals or companies.
Guinness N40bn rights issue: Can it realise full subscription?
Guinness Nigeria Plc is a very good company, no doubt. It is apparent that the company has not been doing well operationally over the past five years due to the economic challenges of the country.
No doubt about it, the price and market share have been shrinking and apparently some opportunity that they were suppose to optimise in the market place were not taken as at when appropriate, but all hope are not lost.
Brokers chart path to sustainable growth
The Chartered Institute of Stockbrokers (CIS) has called for fresh policy on investment in infrastructure and abrogation of multiple taxation system to fast track the nation’s economic growth.
The Institute urged government to lower the interest rates and create an enabling environment for investors by removing barriers and allowing for the free movement of capital.
CBN defends forex policies, faults criticisms
The Central Bank of Nigeria (CBN) has defended its foreign exchange policies, and faulted the continued and unwarranted attack on its policies by a group of Nigerians, whose real interests, it said were self-serving and unpatriotic.
In a statement, CBN spokesman, Isaac Okorafor, said: “While we respect the rights of every Nigerian or stakeholder to their respective views, we find it curious that certain interests have remained persistent in their move to misinform the larger public, with the intention of discrediting genuine efforts at managing the economy, thereby creating public distrust and panic within the financial system.”
Naira devaluation inimical to economic devt, says don
The Dean, Faculty of Business Administration, University of Uyo, Uyo, Akwa Ibom State, Prof. Leo Ukpong, has warned against naira devaluation, arguing that it will not help the economy to recover quickly from recession.
Speaking at the weekend in Lagos, Ukpong who is also a Professor of Financial Economics, said the devaluation of any country’s currency could either produce good or bad result depending on the structure of the economy.