Economic News Update

Economic News Update: 8th March, 2017

Forex: CBN pumps additional $100m into market

The Central Bank of Nigeria on Tuesday injected another sum of $100m into the interbank foreign exchange market, its acting Director, Corporate Communications, Isaac Okorafor has said. Okorafor said the measure became necessary as part of the initiatives to make Forex easily accessible, thereby crashing demand at the black market. The director made this known to newsmen in Abuja on Tuesday.

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FIRS Generates N27bn from Tax Waivers, Registers 814,000 New Taxpayers

The Federal Inland Revenue Service (FIRS) has garnered a total of N27.086 billion since it introduced its tax waiver on penalty and interest programme. It also captured 814,000 new taxpayers in its register. The Executive Chairman of FIRS, Mr. Tunde Fowler made the disclosures in Abuja yesterday when he played host to the House of Representatives Committee on Finance.

The tax waiver programme was initiated to make tax defaulters regularise their relationship with the FIRS. A statement issued by FIRS’ Head of Communications and Servicom Department, Mr. by Wahab Gbadamosi said Fowler, who spoke in Abuja during the oversight visit by the House Committee noted that the sum of N27.086 billion was from the tax waiver programme

Read More

Rate convergence likely over CBN’s dollar supplies

The ongoing weekly dollar supplies by the Central Bank of Nigeria (CBN) at the interbank market are expected to facilitate exchange rate convergence in the coming months, analysts have said.

Speaking on the development, the Managing Director, Financial Derivatives Company Limited, Bismark Rewane, said the convergence between the parallel and official rates, has started after the CBN’s sustained dollar interventions in the interbank.

Read More

FG to reduce stakes in refineries, oil assets

The Federal Government has said it will reduce its stakes in Joint Venture oil assets, refineries and other downstream subsidiaries such as pipelines and depots.

The Economic Recovery and Growth Plan, a Medium Term Plan for 2017 to 2020, which was released on Tuesday by the Ministry of Budget and National Planning, stated that the government’s stakes in other oil and non-oil assets would be significantly reduced.

Read More

China’s FX Reserves Hit $3tn

China’s foreign exchange reserves unexpectedly rose for the first time in eight months in February, rebounding above $3 trillion as a regulatory crackdown and weakness in the dollar helped staunch capital outflows.

Reserves rose $6.92 billion in February to total $3.005 trillion, their first increase since June 2016, compared with a drop of $12.3 billion in January, when reserves fell to $2.998 trillion.

Read More

May & Baker to grow pharmaceuticals by 75% to N11b

Shareholders of May & Baker Nigeria Plc should expect a better performance this year as the leading healthcare company plans to grow its drug manufacturing and distribution business by 75 per cent to about N11 billion. Executive Director, Pharma sales and marketing, May & Baker Nigeria Plc, Mr. Chukuka Chukutem, said the company plans to increase the contribution of the pharmaceutical business to the group turnover from N6 billion in 2016 to about N10.5 billion in 2017.

Read More

Customs ultimatum on old vehicles arbitrary, unlawful – Senate

The Senate on Tuesday asked the Nigeria Customs Service to suspend action on the plan to clamp down on vehicles without correct duty papers. The upper chamber of the National Assembly asked the leadership of the NSC to appear before its Committee on Customs, Excise and Tariff to brief Nigerians on the plan.

According to the lawmakers, the border agency has failed to provide adequate information to the public despite giving a one-month deadline to Nigerians.

Read More

Stanbic IBTC Assures Shareholders on Sustainable Growth

Stanbic IBTC Holdings Plc at its fourth annual general meeting held tuesday reiterated its commitment to deliver outstanding value to clients and stakeholders.

Approved by shareholders at the event was the 2015 financial statement of accounts. Stanbic IBTC had in a statement to the Nigerian Stock Exchange on December 21, 2016, disclosed that following the resolution of the dispute with the Financial Reporting Council of Nigeria, its 2015 audited financial statements had been signed off by the external auditors, Messrs. KPMG Professional Services and can now be made public.

Read More

Derivatives’ll aid growth of capital market, says FBN Capital chief

Development of the derivative products will enhance liquidity and increase funding solutions in the Nigerian capital market, Head, Structured Products, FBN Capital Limited, Mr. Michael Okon, has said.

Okon, who spoke at the maiden edition of the Nigerian Structured Product Summit in Lagos, said existing financial securities can be combined with derivatives to address the many needs of clients, including risk management, yield enhancements and funding purposes. According to him, the development of the derivatives segment of the capital market would deepen the pool of investible assets and widen the assets choices for both investors and issuers.

Read More

‘Regulatory agencies lack capacity to verify royalties, others’

Regulatory agencies in the oil, gas and solid minerals sectors lack the required capacities to verify royalties and Petroleum Profit Tax computations prepared by companies operating in the industry, the Nigeria Extractive Industries Transparency Initiative has said.

According to NEITI, this flaw by the regulators has cost the country dearly, adding that it had resulted in waste, fraud and monumental corruption.

Read More

Report: Investors’ Perception of Nigeria Improving Marginally

Investors’ perception about Nigeria has improved marginally following the successful $1 billion Eurobond issue, which was 8.5 times oversubscribed as well as recent changes in the country’s foreign exchange (FX) policy, a report has shown.

The Chief Executive Officer, Financial Derivatives Company Limited (FDC), Mr. Bismarck Rewane, said this in his monthly presentation at the Lagos Business School titled: “Economic Reform by Coincidence- Does it really matter?” for March 2017.

Read More

FG targets 4.62% GDP growth in new recovery plan

The Federal Government yesterday expressed optimism that the Nigeria economy would exit  recession and grow by 2.19 percent this year. Speaking on the unveiling of the  New Economic Recovery and Growth Plan 2017-2020, the Media Adviser to the Budget and Planning Minister,  James Akpanden, stated that Gross Domestic Product (GDP) was  expected to grow an average of 4.62 percent a year until 2020, and would hit 7 percent in 2020.

Part of the government’s plan to exit recession, according to the minister’s spokesman, include selling some key public assets in addition to a raise in taxes on luxury goods. Nigeria widely regarded as sub-Saharan Africa’s biggest economy entered its first recession in a quarter of a century in 2016, following prolonged low oil and commodity prices that reduced government revenues, weakened that naira created a galloping inflation.

Read More

Suleiman: Contributory Pension Scheme is Facing Challenges

The Managing Director, Future Unity Glanvils Pension Limited, Usman Suileman, spoke with Ebere Nwoji on the impact of economic recession, which has resulted in job cuts by pension fund administrators, government’s efforts to address the challenges, and his company’s activities in 10 years of operations, among others. Excerpts:

2017 is a crucial year for various reasons; the economic situation has been very difficult 18 months. The recession has persisted beyond expectation. However, from all indications, we expect that the economy will stabilise and recovery turn around will commence over the next 18 months.

Read More

Nigerian ports get improved safety standards

The United States Coast Guard (USCG) has declared that safety status of the Nigerian ports as improving, commending the level of compliance with International Ship and Port Facility Security (ISPS) Code. The USCG team, which was in Nigeria to examine the level of compliance with the international ISPS code assured of their support to Nigeria towards achieving a safer ports, jetties and terminals.

The leader of the delegation of the United States Coast Guard, Commander Thomas Foster, commended Nigerian Maritime Administration and Safety Agency (NIMASA) for its strides in ensuring safety at the ports and expressed satisfaction with the infrastructural development as regarding ISPS Code implementation in the ports visited in Lagos.

Read More

CBN, NDIC struggle for control of dormant accounts’ fund

The Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) tried to convince the House of Representatives Committee on Banking and Currency that they would use the proceeds of dormant accounts in commercial banks  judiciously.

The two organisations spoke during the public hearing on a bill for an Act to Amend the Banks and other Financial Institutions Act, to among other things, establish a Deposit Fund at the CBN, for Standardisation and Management of Dormant Accounts., Kofo Alada, who represented the  CBN said the amendment should give the the apex bank ‘certain latitudes’ to manage the Dormant accounts fund.

Read More

Comment here

Economic News Update

Economic News Update: 8th March, 2017

Forex: CBN pumps additional $100m into market

The Central Bank of Nigeria on Tuesday injected another sum of $100m into the interbank foreign exchange market, its acting Director, Corporate Communications, Isaac Okorafor has said. Okorafor said the measure became necessary as part of the initiatives to make Forex easily accessible, thereby crashing demand at the black market. The director made this known to newsmen in Abuja on Tuesday.

Read More

FIRS Generates N27bn from Tax Waivers, Registers 814,000 New Taxpayers

The Federal Inland Revenue Service (FIRS) has garnered a total of N27.086 billion since it introduced its tax waiver on penalty and interest programme. It also captured 814,000 new taxpayers in its register. The Executive Chairman of FIRS, Mr. Tunde Fowler made the disclosures in Abuja yesterday when he played host to the House of Representatives Committee on Finance.

The tax waiver programme was initiated to make tax defaulters regularise their relationship with the FIRS. A statement issued by FIRS’ Head of Communications and Servicom Department, Mr. by Wahab Gbadamosi said Fowler, who spoke in Abuja during the oversight visit by the House Committee noted that the sum of N27.086 billion was from the tax waiver programme

Read More

Rate convergence likely over CBN’s dollar supplies

The ongoing weekly dollar supplies by the Central Bank of Nigeria (CBN) at the interbank market are expected to facilitate exchange rate convergence in the coming months, analysts have said.

Speaking on the development, the Managing Director, Financial Derivatives Company Limited, Bismark Rewane, said the convergence between the parallel and official rates, has started after the CBN’s sustained dollar interventions in the interbank.

Read More

FG to reduce stakes in refineries, oil assets

The Federal Government has said it will reduce its stakes in Joint Venture oil assets, refineries and other downstream subsidiaries such as pipelines and depots.

The Economic Recovery and Growth Plan, a Medium Term Plan for 2017 to 2020, which was released on Tuesday by the Ministry of Budget and National Planning, stated that the government’s stakes in other oil and non-oil assets would be significantly reduced.

Read More

China’s FX Reserves Hit $3tn

China’s foreign exchange reserves unexpectedly rose for the first time in eight months in February, rebounding above $3 trillion as a regulatory crackdown and weakness in the dollar helped staunch capital outflows.

Reserves rose $6.92 billion in February to total $3.005 trillion, their first increase since June 2016, compared with a drop of $12.3 billion in January, when reserves fell to $2.998 trillion.

Read More

May & Baker to grow pharmaceuticals by 75% to N11b

Shareholders of May & Baker Nigeria Plc should expect a better performance this year as the leading healthcare company plans to grow its drug manufacturing and distribution business by 75 per cent to about N11 billion. Executive Director, Pharma sales and marketing, May & Baker Nigeria Plc, Mr. Chukuka Chukutem, said the company plans to increase the contribution of the pharmaceutical business to the group turnover from N6 billion in 2016 to about N10.5 billion in 2017.

Read More

Customs ultimatum on old vehicles arbitrary, unlawful – Senate

The Senate on Tuesday asked the Nigeria Customs Service to suspend action on the plan to clamp down on vehicles without correct duty papers. The upper chamber of the National Assembly asked the leadership of the NSC to appear before its Committee on Customs, Excise and Tariff to brief Nigerians on the plan.

According to the lawmakers, the border agency has failed to provide adequate information to the public despite giving a one-month deadline to Nigerians.

Read More

Stanbic IBTC Assures Shareholders on Sustainable Growth

Stanbic IBTC Holdings Plc at its fourth annual general meeting held tuesday reiterated its commitment to deliver outstanding value to clients and stakeholders.

Approved by shareholders at the event was the 2015 financial statement of accounts. Stanbic IBTC had in a statement to the Nigerian Stock Exchange on December 21, 2016, disclosed that following the resolution of the dispute with the Financial Reporting Council of Nigeria, its 2015 audited financial statements had been signed off by the external auditors, Messrs. KPMG Professional Services and can now be made public.

Read More

Derivatives’ll aid growth of capital market, says FBN Capital chief

Development of the derivative products will enhance liquidity and increase funding solutions in the Nigerian capital market, Head, Structured Products, FBN Capital Limited, Mr. Michael Okon, has said.

Okon, who spoke at the maiden edition of the Nigerian Structured Product Summit in Lagos, said existing financial securities can be combined with derivatives to address the many needs of clients, including risk management, yield enhancements and funding purposes. According to him, the development of the derivatives segment of the capital market would deepen the pool of investible assets and widen the assets choices for both investors and issuers.

Read More

‘Regulatory agencies lack capacity to verify royalties, others’

Regulatory agencies in the oil, gas and solid minerals sectors lack the required capacities to verify royalties and Petroleum Profit Tax computations prepared by companies operating in the industry, the Nigeria Extractive Industries Transparency Initiative has said.

According to NEITI, this flaw by the regulators has cost the country dearly, adding that it had resulted in waste, fraud and monumental corruption.

Read More

Report: Investors’ Perception of Nigeria Improving Marginally

Investors’ perception about Nigeria has improved marginally following the successful $1 billion Eurobond issue, which was 8.5 times oversubscribed as well as recent changes in the country’s foreign exchange (FX) policy, a report has shown.

The Chief Executive Officer, Financial Derivatives Company Limited (FDC), Mr. Bismarck Rewane, said this in his monthly presentation at the Lagos Business School titled: “Economic Reform by Coincidence- Does it really matter?” for March 2017.

Read More

FG targets 4.62% GDP growth in new recovery plan

The Federal Government yesterday expressed optimism that the Nigeria economy would exit  recession and grow by 2.19 percent this year. Speaking on the unveiling of the  New Economic Recovery and Growth Plan 2017-2020, the Media Adviser to the Budget and Planning Minister,  James Akpanden, stated that Gross Domestic Product (GDP) was  expected to grow an average of 4.62 percent a year until 2020, and would hit 7 percent in 2020.

Part of the government’s plan to exit recession, according to the minister’s spokesman, include selling some key public assets in addition to a raise in taxes on luxury goods. Nigeria widely regarded as sub-Saharan Africa’s biggest economy entered its first recession in a quarter of a century in 2016, following prolonged low oil and commodity prices that reduced government revenues, weakened that naira created a galloping inflation.

Read More

Suleiman: Contributory Pension Scheme is Facing Challenges

The Managing Director, Future Unity Glanvils Pension Limited, Usman Suileman, spoke with Ebere Nwoji on the impact of economic recession, which has resulted in job cuts by pension fund administrators, government’s efforts to address the challenges, and his company’s activities in 10 years of operations, among others. Excerpts:

2017 is a crucial year for various reasons; the economic situation has been very difficult 18 months. The recession has persisted beyond expectation. However, from all indications, we expect that the economy will stabilise and recovery turn around will commence over the next 18 months.

Read More

Nigerian ports get improved safety standards

The United States Coast Guard (USCG) has declared that safety status of the Nigerian ports as improving, commending the level of compliance with International Ship and Port Facility Security (ISPS) Code. The USCG team, which was in Nigeria to examine the level of compliance with the international ISPS code assured of their support to Nigeria towards achieving a safer ports, jetties and terminals.

The leader of the delegation of the United States Coast Guard, Commander Thomas Foster, commended Nigerian Maritime Administration and Safety Agency (NIMASA) for its strides in ensuring safety at the ports and expressed satisfaction with the infrastructural development as regarding ISPS Code implementation in the ports visited in Lagos.

Read More

CBN, NDIC struggle for control of dormant accounts’ fund

The Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) tried to convince the House of Representatives Committee on Banking and Currency that they would use the proceeds of dormant accounts in commercial banks  judiciously.

The two organisations spoke during the public hearing on a bill for an Act to Amend the Banks and other Financial Institutions Act, to among other things, establish a Deposit Fund at the CBN, for Standardisation and Management of Dormant Accounts., Kofo Alada, who represented the  CBN said the amendment should give the the apex bank ‘certain latitudes’ to manage the Dormant accounts fund.

Read More

Comment here