CBN to Enforce International Standard on Auditing Rule in Banks
The Central Bank of Nigeria (CBN) monday advised all banks and their external auditors to adhere to Rule 9 (Application of International Standard on Auditing (ISA) 701 – (Communicating Key Audit Matters in the Independent Auditor’s Report) of the Financial Reporting Council of Nigeria (FRCN).
The rule requires independent auditors of listed and unlisted entities to comply with the requirements of ISA 701 for audit of financial statements for periods ending on or after December 15, 2016 and June 30, 2017, respectively.
NCDMB plans forensic audit of oil industry
The Nigerian Content Development and Monitoring Board has said it will embark on a forensic audit of the nation’s oil and gas industry in a bid to ensure full compliance with the Nigerian Content Development Fund.
The Executive Secretary, NCDMB, Mr. Simbi Wabote, stated this on Monday in Lagos at a stakeholders’ forum on the NCDF remittances. The NCDF was established by Section 104 of the Nigerian Oil and Gas Industry Content Development Act of 2010, and provides that one per cent of the value of every contract in the upstream sector of the industry should be deducted at source and paid into the fund.
Oil prices rise to $57.01 on weaker dollar
Oil prices rose yesterday with traders shifting money into crude futures as the dollar weakened and on concerns that new U.S. sanctions against Iran could be extended to affect crude supplies. But markets were held back by more signs of growing U.S. production and by worries that import demand in China could slow.
International Brent crude futures were trading at $57.01 per barrel at 0620 GMT, up 20 cents from their last close. U.S West Texas Intermediate (WTI) futures were up 19 cents at $54.02 a barrel.
CBN to sanction banks over non-remittance of content fund
The Central Bank of Nigeria (CBN), has vowed to sanction banks over the non-remittance of Nigerian Content Development Fund (NCDF) in their custody. CBN Governor, Mr. Godwin Emefiele, gave the warning at a Stakeholders Forum on NCDF Remittances organised by the Nigerian Content Development and Monitoring Board (NCDMB) held in Lagos yesterday. The NCDF was established by Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010.
The Act provides that one per cent of every contract in the upstream sector of the Nigeria oil and gas industry shall be deducted at source and paid into the fund. The Act also gives the board the mandate to manage the fund and employ it for projects, programmes and activities directed at increasing Nigerian content in the oil and gas industry.
Despite NNPC’s Intervention, Ex-depot Price of Petrol Still High
In spite of the intervention of the Nigerian National Petroleum Corporation (NNPC) to flood the market with imported petrol, the ex-depot price of the product is still higher than the government’s approved N123.28 –N133.28 per litre ex-depot price band, THISDAY has learnt.
THISDAY gathered that following the hike in the ex-depot price with some depot owners selling at N142 per litre, PPMC flooded the private depots with petrol. Apart from the six marketers –Oando, Mobil, Total, Forte Oil, Conoil and MRS – that receive constant supply of petrol from the NNPC, only few depot owners had petrol early last week.
CIS, ASHON, back regulatory actions to curb unethical practices
THE Chartered Institute of Stockbrokers (CIS) and the Association of Stockbroking Houses of Nigeria (ASHON) have thrown their weight behind the recent regulatory actions targeted at curbing unethical practices among operators in the market. CIS and ASHON, in separate meetings, re-assured the investing public that the Nigerian stock market would continue to remain a safe investment platform.
Reps summon Emefiele over $1bn forex sales by IOCs
An ad hoc committee of the House of Representatives on Monday summoned the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, to explain how International Oil Companies got involved in the sale of foreign exchange to importers and marketers of petroleum products in 2016.
The committee, which is chaired by a member from Imo State, Mr. Nnanna Igbokwe, is conducting a public hearing on the review of the pump price of Premium Motor Spirit from N145 to N70.04. The House had on November 29, 2016 passed a resolution asking the Petroleum Products Pricing Regulatory Agency to review the pump price of PMS, otherwise known as petrol, to N70.04 per litre, because some charges in the current template were not justifiable.
FG to retain 75% import duty rebate at OGFZA
The Federal Government has assured that it will retain incentives that have been put in place to attract investment in the oil and gas free zones across the country. Disclosing this during an official visit to Indorama and Brawal offices in Onne, Rivers State, Managing Director of the Oil and Gas Free Zones Authority (OGFZA), Mr. Umana Okon Umana, said that assurances have been given to retain incentives so as to attract investors operating in the zones, adding that the government was working on creating an enabling environment for investors.
“The Federal Government is working on retaining these incentives that have been kept in place so as to attract investments in the oil and gas free zones in the country, as these incentives were specifically designed to support investors operating in the zones.
FG Seeks to Augment Petrol, Diesel Consumption with Biofuel
The federal government will soon insist that a minimum of 10 and 20 per cent of biofuel be added to every litre of petrol and diesel, respectively in petrol stations across the country, the Petroleum Products Pricing Regulatory Agency (PPPRA) has disclosed.
According to the PPPRA, a national policy on biofuel development, which would provide the incentive for the growth of biofuel consumption in the country was underway and could be passed into law soon.
FG to inaugurate new NERC commissioners without chairman
The Federal Government will today (Tuesday) in Abuja inaugurate new commissioners for the Nigerian Electricity Regulatory Commission, but without a chairman for the agency. Since the tenure of the former commissioners of NERC and its immediate past chairman expired in December 2015, the commission has been run by an acting chief executive officer, Dr. Tony Akah, without the assistance of commissioners as prescribed by law.
The Electric Power Sector Reform Act, 2005 stipulates that NERC shall have seven full time commissioners appointed by the President, subject to confirmation by the Senate. It also stated that the President would designate one of the commissioners as chairman, who would be the chief executive and accounting officer of the commission.
NAICOM resolves 218 complaints worth N5.5bn
The National Insurance Commission (NAICOM) has said that for the year, it resolved a total of 218 complaints resulting in the settlement of claims worth N5.48 billion in 2016. According to Salami Rasaaq, Head, Corporate Affairs of the commission, a total of 413 complaints from aggrieved policyholders were received against insurance companies in the year under review out of which 218 were resolved.
The commission stated that it held adjudication meetings and had direct contacts with all parties involved, while resolving the disputes. Salami noted that the commission was at the verge of resolving about 650 ongoing cases from 2014, which are all at different stages of conclusion, adding that NAICOM will continue to strive hard to ensure protection of policyholders, beneficiaries and third parties of insurance contracts.
‘Nigeria to Partner Kenya, Rwanda on Optimal Use of ICT’
The Minister of Communications, Adebayo Shittu has disclosed that, the federal government has commenced a working relationship with Kenya and Rwanda governments on the maximum use of ICT to improve the financial inclusiveness of an average Nigerian.
Also, he said that federal government is contemplating establishing a communications bank which will be a development bank that will assist in the financing of communication and ICT companies based in the country. Shittu disclosed this in Ilorin, the Kwara State capital at the weekend while fielding questions from journalists on the state of the nation.
Naira struggles: The missing 42nd item
The 41 item exclusion list is no news. In June of 2015, in response to the collapse of foreign exchange inflows, thanks to the crude oil price crash, the central bank decided to change tactics in its quest to maintain a “stable” naira. It abandoned the policy of drawing down on the foreign reserves and opted to just ban certain market participants from the official foreign exchange markets.
This, it argued, would reduce pressure on the exchange rate. Demand management they called it. In doing this it drafted a now infamous list of 41 items that were banned from buying foreign exchange from the official markets. The list included things like palm oil, rice, toothpicks and eurobonds.
Oil sector recovery’ll give banks relief – GTBank
With oil and gas loans accounting for about 30 per cent of the total banking industry exposure, an improvement in oil sector receipts will provide relief for banks, enhance repayment of obligations and improve asset performance.
Guaranty Trust Bank Plc stated this in its ‘Macroeconomic and Banking Sector Themes for 2017’, which was released on Monday. The lender noted that the banking industry had been plagued by declining asset quality in the wake of the fall in crude oil prices, devaluation of the naira and foreign exchange scarcity, with the ratio of non-performing loans rising to 11.7 per cent from 5.3 per cent in December 2015.
The Evolving EU-Nigeria Social, Economic Alliance
The European Union (EU) has had a lot of successes since it was founded on November 1, 1993, in Maastricht, The Netherlands. Although the body’s activities actually started as far back as the 1950s with a different nomenclature, it formerly became a union in 1993.
Beginning as a pretty much amorphous geo-political entity with only six countries as members, it now covers a large portion of the European continent. It was founded upon numerous treaties and has undergone expansions that have taken it from the founding six member states to 28, a majority of the states in Europe.
Nigeria begins trade negotiations with African countries
The Federal Government will this week begin another round of negotiations with all the countries in the African region under the Continental Free Trade Agreement.
The Strategic Communications Adviser to the Minister of Industry, Trade and Investment, Constance Ikokwu, who confirmed the development, said the Nigerian negotiation team, consisting of eight members, would be led by the Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah.
First Bank leads GTBank, Zenith, Access, UBA in top 500 global banking brands
First Bank of Nigeria Limited has been named as the most valuable banking brand in Nigeria in the Top 500 Banking Brands of The Banker magazine of the Financial Times and Brand Finance, London, United Kingdom for the sixth consecutive time.
First Bank is also the only Nigerian bank in the top 10 banking brands in Africa, along with nine other banks from South Africa, Egypt and Morocco. According to the Chief Executive, Brand Finance, David Haigh, the brand value is the amount a third party will need to pay in using the brand name.