Economic News Update

Economic News Update: Monday 9th January, 2017

economic-news

Read Pdf Doc Here

Shareholders wary of stock market recovery in 2017

Two’ groups; Progressive Shareholders Association of Nigeria (PSAN), and Standard Shareholders Association of Nigeria (SSAN), have bemoaned the huge losses suffered by investors in the last few years. They, therefore, urged regulators to work towards ensuring that the there is increased retail investors’ participation to enable the market to play its primary role in capital formation within the context of the nation’s economic development.

Read More

Fed Govt mulls sovereign savings bonds for retail investors

The Federal Government is set to launch its first-ever savings bonds into the domestic bond market to link savings and investments with national infrastructural development and economic growth.

The bonds, to be known as Federal Government of Nigeria Savings Bond, will be marketed like the ordinary equities on the stock market and will be available to all Nigerians, including those with the smallest amount of money to invest.

Read More

Budget: Inflation, Exchange Rate To Influence Bond Subscriptions In 2017– Analysts

With a proposed appropriation bill deficit of N2.269 trillion in 2017 of which N1.252 trillion is to be sourced through domestic borrowing, analysts say inflation, exchange rates as well as yields would determine the ability of the government to raise as much as it plans to through bonds this year.

The Debt Management Office at the weekend had released the 2017 first quarter bond issuance calendar,  in which it says it plans to raise between N340 and N430 billion in the first three months of the year.

Read More

Why China withholds $20b concession loan to Nigeria

Multiple negative growth recorded in the economy in 2016 has been identified as one of the reasons the Chinese government withheld a $20 billion concession loan earlier promised Nigeria upon due verification, The Guardian has learnt.

A top Presidency source privy to the development told The Guardian that the Federal Government had been hopeful that the Chinese government would release the loan last year, given the relationship between the two countries, but expressed disappointment that the money was withheld. The action of China may well be an indication of the loss of confidence in Nigeria’s credit worthiness by the global financial community.

 

Read More

 

N5,000 stipend: How we identified beneficiaries – Presidency
Presidency, last night, said the beneficiaries of the N5,000 stipend in the Social Investment Programmes, SIP, were selected through a credible process by non partisan approach. It stated that government workers, working with the state officials, identified the poorest local government areas, using an existing poverty map for the state. According to it, the local government officials were later contacted to identify the poorest communities in the respective councils.
Read More

SEC, Central Bank issue guidelines for securities settlement in Nigeria

Committed to facilitating the development of efficient systems for the settlement of transactions, the Securities and Exchange Commission (SEC), in collaboration with the Central Bank of Nigeria (CBN), has issued guidelines for the settlement of all types of securities in Nigeria.

The guideline is expected to promote competitive, efficient, safe and sound post trading arrangements in Nigeria. This will ultimately lead to greater confidence in securities markets, boost investors’ protection and limit systemic risk.

Read More

Jaiz Bank to list N37b shares on Stock Exchange

Jaiz Bank Plc, Nigeria’s first non-interest commercial bank, has secured the approval of the council of the Nigerian Stock Exchange (NSE) to list its entire issued share capital on the Exchange.

A regulatory approval obtained at the weekend indicated that the Quotation Committee, which oversees listing at the Exchange, has approved application for the listing of the shares of Jaiz Bank on the NSE. Jaiz Bank will be listing a total of 29.46 billion ordinary shares of 50 kobo each at N1.25, indicating a start-off market capitalisation of N36.83 billion.

Read More

Oil, gas sector: Fresh investments stunted by stakeholders inertia

The year 2016 started with gloom, considering the high level of shattered dreams that characterised the better part of 2015, which eventually continued in the year under review.
The continuous decline in crude oil price in 2014, continued until 2016, hitting an all time low of $27, before gradually rising to its current price of $58.
The current oil price increase is not without sacrifices from some Organisation of Petroleum Exporting Countries (OPEC) member countries to ensure that prices regain momentum. Several meetings held ended in deadlock without the cartel reaching a consensus. But in November, members agreed to cut production, leading to a steady rise in oil prices.

Read More

Unremitted N450bn: FG issues new guideline for calculating surplus

The Federal Government, in a bid to check the high level of under-remittance of funds by revenue-collection agencies, has issued fresh guidelines for the computation of operating surpluses.

The new guideline that will guide the preparation of the agencies’ financial statements for the next three years covering up to 2019 is contained in a circular signed by the Minister of Finance, Mrs. Kemi Adeosun.

Read More

Vitafoam share price up after release of full year result
TWO companies’ results were released on the Nigerian Stock Exchange, NSE last week with Vitafoam Nigeria Plc among one of the equities whose share price went up last week. Linkage Assurance Plc was the second company whose financial statement ended September 30,2016 was released on the exchange.

The result showed that revenue stood at N3,357 billion as against N3,060 billion in 2015; Profit/Loss After Tax  stood at N616,098 million in 2016 as against N651,781million. The share price of Linkage Assurance remained unchanged for the week under review.

Read More

U.S. records less jobs as wages rise at fastest pace in seven years

The US economy expanded at a slower-than-expected pace in the first quarter of 2012, reflecting a deceleration in inventories and non-residential fixed investment. The US economy added less jobs than expected last month, but wages increased at the fastest pace since 2009, official figures released on 6 January showed.

According to the US government, the world’s largest economy created 156,000 jobs in December, slightly below 175,000 analysts expected, while November’s gains were revised up from 178,000 to 204,000. October’s figure, however, was trimmed to 135,000 from 142,000.

Read More

Naira drops to 493 as dollar demand rises

The naira fell further against the United States dollar at the parallel market on Friday to 493, from 490 on Thursday as increased dollar demand weighed on the market. Forex traders said the local unit plummeted following an increased demand for the dollar and other hard currencies by parents seeking to pay school fees of wards studying overseas.

The naira had closed flat against the dollar at the official interbank window and at the parallel foreign exchange market last  Tuesday, the first official trading day of the year.

Read More

Alleged Money Laundering: Court Orders MTN To Forfeit N8bn To FG

Justice Abdulaziz Anka of the Federal High Court in Lagos has ordered the temporary forfeiture of the sum of N8 billion allegedly belonging to MTN Communications Limited to the Federal Government.

The judge gave the order that the sum, suspected to be proceeds of unlawful activity, which are stashed in account number 0012005379 domicile in Ecobank, be temporarily forfeited following an ex-parte application to that effect filed before the court by the federal government. Also affected by the order of the court is another account number 1013607079 containing billions of Naira domicile in Skye Bank Plc, whose owner has not file any application before the court to contest ownership.

Read More

Activities remain low on NASD OTC market

ACTIVITIES on the NASD OTC Securities Exchange remained low with few securities exchanging hands last week. For most part of December 2016, the number of activities has been very low, indicating low appetite for shares listed on the exchange for the period under review.

Specifically, two securities exchanged hands at the end of Friday with Central Securities Clearing System, CSCS Plc, with price at N5.55 per unit recording N535,000 units of shares worth N2.9 million in 11 deals. It was followed by Friesland Campina Wamco Nigeria Plc with price at N136.00 per unit, recording 1,256 unit of shares valued at N176.273.20.

Read More

BoE chief laments uncertainty over economic forecasts

The Bank of England’s (BoE) Chief Economist bemoaned the inherent risks of placing too much faith in economic forecasting given the failure to foresee the financial crash in 2008 as well as the Brexit vote.

Andrew Haldane conceded the economics profession was in “some degree of crisis”, when speaking at the Institute for Government on Thursday. However, he reiterated the central banks view that the U.K. economy would suffer in 2017 as a consequence of the country’s vote to leave the European Union (EU).

Read More

LCCI: Budget 2017 may not pull economy out of recession

THE 2017 Budget may not pull the economy out of recession, because it is not significantly different from that of last year, the Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr Muda Yusuf, has w said.

He said the difference might be in its implementation and the sustainability of the underlying assumptions. He, however, said there was hope of getting out of recession if the right things were done, adding that the recession story has both external and domestic dimensions.

 

Read More

Comment here

Economic News Update

Economic News Update: Monday 9th January, 2017

economic-news

Read Pdf Doc Here

Shareholders wary of stock market recovery in 2017

Two’ groups; Progressive Shareholders Association of Nigeria (PSAN), and Standard Shareholders Association of Nigeria (SSAN), have bemoaned the huge losses suffered by investors in the last few years. They, therefore, urged regulators to work towards ensuring that the there is increased retail investors’ participation to enable the market to play its primary role in capital formation within the context of the nation’s economic development.

Read More

Fed Govt mulls sovereign savings bonds for retail investors

The Federal Government is set to launch its first-ever savings bonds into the domestic bond market to link savings and investments with national infrastructural development and economic growth.

The bonds, to be known as Federal Government of Nigeria Savings Bond, will be marketed like the ordinary equities on the stock market and will be available to all Nigerians, including those with the smallest amount of money to invest.

Read More

Budget: Inflation, Exchange Rate To Influence Bond Subscriptions In 2017– Analysts

With a proposed appropriation bill deficit of N2.269 trillion in 2017 of which N1.252 trillion is to be sourced through domestic borrowing, analysts say inflation, exchange rates as well as yields would determine the ability of the government to raise as much as it plans to through bonds this year.

The Debt Management Office at the weekend had released the 2017 first quarter bond issuance calendar,  in which it says it plans to raise between N340 and N430 billion in the first three months of the year.

Read More

Why China withholds $20b concession loan to Nigeria

Multiple negative growth recorded in the economy in 2016 has been identified as one of the reasons the Chinese government withheld a $20 billion concession loan earlier promised Nigeria upon due verification, The Guardian has learnt.

A top Presidency source privy to the development told The Guardian that the Federal Government had been hopeful that the Chinese government would release the loan last year, given the relationship between the two countries, but expressed disappointment that the money was withheld. The action of China may well be an indication of the loss of confidence in Nigeria’s credit worthiness by the global financial community.

 

Read More

 

N5,000 stipend: How we identified beneficiaries – Presidency
Presidency, last night, said the beneficiaries of the N5,000 stipend in the Social Investment Programmes, SIP, were selected through a credible process by non partisan approach. It stated that government workers, working with the state officials, identified the poorest local government areas, using an existing poverty map for the state. According to it, the local government officials were later contacted to identify the poorest communities in the respective councils.
Read More

SEC, Central Bank issue guidelines for securities settlement in Nigeria

Committed to facilitating the development of efficient systems for the settlement of transactions, the Securities and Exchange Commission (SEC), in collaboration with the Central Bank of Nigeria (CBN), has issued guidelines for the settlement of all types of securities in Nigeria.

The guideline is expected to promote competitive, efficient, safe and sound post trading arrangements in Nigeria. This will ultimately lead to greater confidence in securities markets, boost investors’ protection and limit systemic risk.

Read More

Jaiz Bank to list N37b shares on Stock Exchange

Jaiz Bank Plc, Nigeria’s first non-interest commercial bank, has secured the approval of the council of the Nigerian Stock Exchange (NSE) to list its entire issued share capital on the Exchange.

A regulatory approval obtained at the weekend indicated that the Quotation Committee, which oversees listing at the Exchange, has approved application for the listing of the shares of Jaiz Bank on the NSE. Jaiz Bank will be listing a total of 29.46 billion ordinary shares of 50 kobo each at N1.25, indicating a start-off market capitalisation of N36.83 billion.

Read More

Oil, gas sector: Fresh investments stunted by stakeholders inertia

The year 2016 started with gloom, considering the high level of shattered dreams that characterised the better part of 2015, which eventually continued in the year under review.
The continuous decline in crude oil price in 2014, continued until 2016, hitting an all time low of $27, before gradually rising to its current price of $58.
The current oil price increase is not without sacrifices from some Organisation of Petroleum Exporting Countries (OPEC) member countries to ensure that prices regain momentum. Several meetings held ended in deadlock without the cartel reaching a consensus. But in November, members agreed to cut production, leading to a steady rise in oil prices.

Read More

Unremitted N450bn: FG issues new guideline for calculating surplus

The Federal Government, in a bid to check the high level of under-remittance of funds by revenue-collection agencies, has issued fresh guidelines for the computation of operating surpluses.

The new guideline that will guide the preparation of the agencies’ financial statements for the next three years covering up to 2019 is contained in a circular signed by the Minister of Finance, Mrs. Kemi Adeosun.

Read More

Vitafoam share price up after release of full year result
TWO companies’ results were released on the Nigerian Stock Exchange, NSE last week with Vitafoam Nigeria Plc among one of the equities whose share price went up last week. Linkage Assurance Plc was the second company whose financial statement ended September 30,2016 was released on the exchange.

The result showed that revenue stood at N3,357 billion as against N3,060 billion in 2015; Profit/Loss After Tax  stood at N616,098 million in 2016 as against N651,781million. The share price of Linkage Assurance remained unchanged for the week under review.

Read More

U.S. records less jobs as wages rise at fastest pace in seven years

The US economy expanded at a slower-than-expected pace in the first quarter of 2012, reflecting a deceleration in inventories and non-residential fixed investment. The US economy added less jobs than expected last month, but wages increased at the fastest pace since 2009, official figures released on 6 January showed.

According to the US government, the world’s largest economy created 156,000 jobs in December, slightly below 175,000 analysts expected, while November’s gains were revised up from 178,000 to 204,000. October’s figure, however, was trimmed to 135,000 from 142,000.

Read More

Naira drops to 493 as dollar demand rises

The naira fell further against the United States dollar at the parallel market on Friday to 493, from 490 on Thursday as increased dollar demand weighed on the market. Forex traders said the local unit plummeted following an increased demand for the dollar and other hard currencies by parents seeking to pay school fees of wards studying overseas.

The naira had closed flat against the dollar at the official interbank window and at the parallel foreign exchange market last  Tuesday, the first official trading day of the year.

Read More

Alleged Money Laundering: Court Orders MTN To Forfeit N8bn To FG

Justice Abdulaziz Anka of the Federal High Court in Lagos has ordered the temporary forfeiture of the sum of N8 billion allegedly belonging to MTN Communications Limited to the Federal Government.

The judge gave the order that the sum, suspected to be proceeds of unlawful activity, which are stashed in account number 0012005379 domicile in Ecobank, be temporarily forfeited following an ex-parte application to that effect filed before the court by the federal government. Also affected by the order of the court is another account number 1013607079 containing billions of Naira domicile in Skye Bank Plc, whose owner has not file any application before the court to contest ownership.

Read More

Activities remain low on NASD OTC market

ACTIVITIES on the NASD OTC Securities Exchange remained low with few securities exchanging hands last week. For most part of December 2016, the number of activities has been very low, indicating low appetite for shares listed on the exchange for the period under review.

Specifically, two securities exchanged hands at the end of Friday with Central Securities Clearing System, CSCS Plc, with price at N5.55 per unit recording N535,000 units of shares worth N2.9 million in 11 deals. It was followed by Friesland Campina Wamco Nigeria Plc with price at N136.00 per unit, recording 1,256 unit of shares valued at N176.273.20.

Read More

BoE chief laments uncertainty over economic forecasts

The Bank of England’s (BoE) Chief Economist bemoaned the inherent risks of placing too much faith in economic forecasting given the failure to foresee the financial crash in 2008 as well as the Brexit vote.

Andrew Haldane conceded the economics profession was in “some degree of crisis”, when speaking at the Institute for Government on Thursday. However, he reiterated the central banks view that the U.K. economy would suffer in 2017 as a consequence of the country’s vote to leave the European Union (EU).

Read More

LCCI: Budget 2017 may not pull economy out of recession

THE 2017 Budget may not pull the economy out of recession, because it is not significantly different from that of last year, the Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr Muda Yusuf, has w said.

He said the difference might be in its implementation and the sustainability of the underlying assumptions. He, however, said there was hope of getting out of recession if the right things were done, adding that the recession story has both external and domestic dimensions.

 

Read More

Comment here