Summary of the top business, economic and political news in Nigeria.
NAIRAMETRICS BUSINESS & ECONOMY
CBN auctions $185.86m in Retail SMIS – Following The Central Bank of Nigeria (CBN) yesterday auctioned $185.86 million at the retail Secondary Market Intervention Sales (SMIS). Source The Nation Read More
Explaining The New Bank Charges, Lending And Deposit Rates Announced By The CBN – Nairametrics| The Central Bank on Nigeria released a new set of guidelines to charges by banks and other financial institutions last week. The new charges are effective May 1 2017. Source Nairametrics Read More
Fed Govt to take $12.921b loans – The Senate has been asked to approve $12.921 billion loans as part of the Federal Government’s 2016-2018 external borrowing (rolling) plan. Source The Nation Read More
FG cuts MSME council members to 21 – The Federal Government has reduced the membership of the National Council on Micro Small and Medium Enterprises from 43 to 21. Source Punch Read More
Freight forwarders urge FG to float naira – The National Association of Government Approved Freight Forwarders has urged the Federal Government to float the naira and remove the official exchange rate peg so that there will be enough supply of dollars for importers. Source Punch Read More
‘Nigeria saves $7b from local content law application’ – The Local Content Act signed into law in 2010 have begun to yeild fruits as over $7 billion has accrued to the nation’s treasury since the implementation of the Act and the oil industry has become more viable, the Oil and Gas Trainers’ Association of Nigeria (OGTAN) President, Dr. Mayowa Afe, has said. Source The Nation Read More
Nigeria can fund 2017 budget with recovered loot — Reps, NLC – The Nigeria Labour Congress, NLC, and some concerned members of the House of Representatives have expressed optimism that with the revelation so far made on recovered money, the country could fund its annual budget without recourse to external borrowing. Source Vanguard Read More
Okoh takes over as BPE chief – The new Director-General (DG) of the Bureau of Public Enterprises (BPE), Mr. Alex Okoh, has assumed duties with a pledge to ensure that privatised enterprises service Nigerians well. Source The Nation Read More
Nigeria loses $3.8b to software imports – Nigeria loses $3.8 billion yearly to the importation of software, Transparency Advocacy Initiative (TAI) and Allied Civil Society Groups (ACSG) lamented yesterday in Abuja. Source The Nation Read More
‘Lagos needs N60b for water projects’ – The Lagos State Government requires about N60 billion to execute its water projects, Commissioner for the Environment Dr Babatunde Adejare has said. Source The Nation Read More
Nigeria’s Finance Ministry denies spending $2 million on British consultancy firm – The Federal Ministry of Finance on Wednesday denied hiring any public relations firm for a fee of $2 million (N612 million) per month. Source Premium Times Read More
FG seeks $5.85bn from China for railway projects – President Muhammadu Buhari is seeking approval from the National Assembly for a proposal to borrow $5.85bn from China to modernise the country’s rail network. Source Punch Read More
FEC approves contracts worth N9bn for transport, EFCC – Federal Executive Council (FEC) on Wednesday approved contracts in the sum of N9.1 billion for projects under the ministry of transportation. Source BUSINESSDAY Read More
Ambode: We Spent 60% of 2016 Budget on Infrastructure Projects – Lagos State Governor, Mr. Akinwunmi Ambode, wednesday said his administration injected 60 per cent of the 2016 budget on strategic infrastructure projects to reflate the state’s economy at the time of national crisis. Source Thisday Read More
Digital Switch Over: NBC told to bar foreign pay TVs – A group, the Concerned Digital Switch Over Stakeholders, has called on the National Broadcasting Commission (NBC) to stop foreign pay-TV operators from broadcast signal distribution in Nigeria. Source Daily Trust Read More
NIRSAL to invest N63bn in agric lending in 2017 – The Nigeria Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL) is investing $200 million (about N63bn) in agricultural lending this year. Source Daily Trust Read More
37 companies bid to supply NNPC fire-fighting trucks – No fewer than 37 companies have submitted bids to supply firefighting trucks to Nigerian Pipelines and Storage Company (NPSC), a downstream subsidiary of the Nigerian National Petroleum Corporation, NNPC. Source Premium Times Read More
NIPCO shareholders get N563m dividend – Shareholders of NIPCO Plc yesterday approved the distribution of N563 million as cash dividend for the 2016 business year as shareholders applauded the strides by the company to increase its dominance in the Nigerian downstream oil sector. Source The Nation Read More
Crown Flour Mills tasks trade partners – The management of Crown Flour Mill has tasked its trade partners on the need to come up with strategies that would enable them to survive the present economic recession. Source Vanguard Read More
Threat to occupy Chevron: Community issues Delta govt final notice – The people of oil-rich Kokodiagbene community, Gbaramatu Kingdom, Warri South-West Local Government Area, Delta State, yesterday, gave a final notice to the state government of their plan to occupy the Utonana Flow Station, operated Chevron Nigeria Limited, following the company’s inability to supply them electricity. Source Vanguard Read More
Crude Swap: Taleveras begins final payment of debt to NNPC – The Nigerian National Petroleum Corporation, NNPC, has confirmed Taleveras Oil & Gas Limited kept its pledge and obligation to settle its commitment to the crude oil swap programme. Source Premium Times Read More
NLNG partners NLPGA to boost cooking gas supply to North – The Nigerian Liquefied Natural Gas (NLNG) company and the Nigerian Liquefied Petroleum Gas Association (NLGPA) have agreed to work together to surmount some of the challenges that have hindered the penetration of Liquefied Petroleum Gas (LPG), popularly called cooking gas, especially to the northern part of the country. Source Daily Trust Read More
Fidelity Bank Declares N4.3 Billin Profit (2017 3Months) – Fidelity Bank today released Unaudited Financial Statements for the three months period ended 31 March 2017.- Source Nairametrics Read More
ALERT: Guinness Nigeria Reports N2.6 Billion Loss (2017 9Months) – Guinness Nigeria today released Unaudited Financial Statements for the Nine months ended 31 March 2017. Source Nairametrics Read More
ALERT: UBA Post N22 Billion Profit (2017 Q1) – UBA today released Condensed Consolidated Financial Statements for the three months ended 31 March 2017. Source Nairametrics Read More
Alert: Union Bank Declares N4.5 Billion Profit (2017 Q1) – Union Bank today released Interim Financial Statements for the three months ended 31 March 2017. Source Nairametrics Read More
ALERT: FBN Holdings Post N15 Billion Profit (2017 Q1) – FBN Holdings today released Interim Financial Statements for the three months ended 31 March 2017. Source Nairametrics Read More
‘Stolen documents’ stalling 2017 budget, says National Assembly – Raising the alarm that the 2017 appropriation bill is being stalled, the National Assembly yesterday asked the police high command to return the vital documents the force allegedly took away during the raid on the official residence of the Chairman, Joint Committee on Appropriations, Senator Danjuma Goje. Source Guardian Read More
Reps to probe stamp duty collections – The House of Representatives has mandated its committee on telecommunications to liaise with the Nigerian Postal Service (NIPOST) to ascertain the total amount collected so far as stamp duty charges of N50 per transaction. Source Daily Trust Read More
How to access new CBN’s Agric fund
Each non-interest deposit Bank to set aside 5% of its PAT annually as contribution to the Fund.
The Central Bank of Nigeria (CBN) has unveiled guidelines for a Non-Interest Financial Institutions under its Agri-Business, Small and Medium Enterprise Investment Scheme (AGSMEIS) and Micro, Small and Medium Enterprises Development Fund (MSMEDF).
This was disclosed by the apex bank via its website on Tuesday. The guidelines also included the Accelerated Agricultural Development Scheme (AADS) and seven other intervention schemes in its bouquet.
How the AGSMEIS works
* The CBN would create a Fund to be known as ‘AGSMEIS Non-Interest Fund’ that will be domiciled in a dedicated account with the apex bank.
* Each non-interest deposit Bank (full-fledged or window) was to set aside 5% of its Profit After Tax (PAT) annually as contribution to the Fund.
* Each non-interest Deposit Bank was also to transfer its contribution to the CBN not later than 10 working days after the Annual General Meeting (AGM) of the participating bank.
* Eligible activities under the Scheme are businesses across the agricultural value chain, covering production, inputs supply, storage, processing, logistics and marketing.
* Others included MSMEs in the real sector including manufacturing, ICT, mining, petrochemicals and the creative industry as well as other activities as the CBN may determine from time to time.
How to access fund
The application of the Fund shall be categorised into three broad components. They are debt, equity and developmental components.
• The debt component shall constitute 50% of the fund which shall be disbursed as financings to eligible businesses through Non-Interest Deposit Money Banks.
*Asset purchased shall be registered with the National Collateral Registry (NCR).
* Financing limit: N10,000,000
* Mark-up: 5% per annum
* Tenor: Up to 7 years (depending on the nature/gestation period of the
* Moratorium: Maximum of 18 months for principal and 6 months on mark-up.
* Duly completed application form.
* Bank Verification Number (BVN).
* Certificate of Training from recognised Entrepreneurship Development Institution (EDI) or evidence of membership of organised private sector association.
* Letter of Introduction from any of the following: Clergy, Village Head, District Head, Traditional Ruler, senior civil servant etc (for individuals, microenterprises only).
* Evidence of registration of business name or certificate of incorporation and filing of annual returns (where applicable) in compliance with the provisions of the Companies and Allied Matters Act (1990).
Last month, the CBN announced that it has unveiled a framework that will integrate a non-interest window in all its intervention programmes aimed at supporting businesses and households that have been impacted negatively by the COVID-19 pandemic.
In a statement, the apex bank said the integration will focus mainly on its Anchor Borrowers’ Programme (ABP) as well as the Targeted Credit Facility (TCF).
Why it matters: The Scheme will be for start-ups, business expansion or revival of ailing companies and shall be in compliance with provisions of BOFIA (1991) as amended and the principles underpinning operations of NIFIs.
“The MSMEDF for NIFIs guidelines are aimed to channel low return funds to the MSME sub-sector of the Nigerian economy through participating Financial Institutions (PFIs) to enhance access by MSMEs to financial services.
“Similarly, the non-interest guidelines for the AADS are aimed at engaging a minimum of 370,000 youths in agricultural production across the country between now and 2023, in order to reduce unemployment among the youth in the country,” it added.
While the specific objectives of the MSMEDF for NIFIs are to increase the productivity and output of microenterprises, job creation and engender inclusive growth, those of the AADS are to increase agricultural production towards food security, job creation and economic diversification.
* It is targeted at Nigerian youth between 18 and 35 years, seek to promote interaction among state governments, the CBN and other stakeholders in the agricultural value chain in each state.
* To enhance job creation in the agricultural sector, with focus on two crops where States have comparative advantage.
* Others were the Real Sector Support Facility (RSSF) revised guidelines (V3); the Real Sector Support Facility (RSSF) among others.
CBN to hold MPC meeting on July 20
Apex bank to hold its 274th Monetary Policy Committee meeting on Monday, July 20, 2020.
The Central Bank of Nigeria has announced that it would hold its 274th meeting of the Monetary Policy Committee (MPC) on Monday, July 20, 2020.
This was disclosed in a statement issued by the apex bank and published on its website.
It stated, “The 274th Meeting of the Monetary Policy Committee (MPC) is scheduled to hold in Monday, July 20, 2020 by 8:00pm at the CBN’s Corporate Headquarters, Abuja.”
Last May, the MPC had reduced the Monetary Policy Rate (MPR) from 13.50% to 12.50%.
Governor, CBN, Godwin Emefiele, disclosed this while reading the communique at the end of the MPC meeting in Abuja.
Meanwhile, other parameters such as the Cash Reserve Ratio (CRR) remained at 27.5%, Liquidity ratio at 30%.
Highlights of the Committee’s decision
* MPC cuts MPR by 100 basis points to 12.50%
*CRR stood at 27.5%
*The Liquidity Ratio was also kept at 30%
Why it matters: The Committee is the highest policy-making committee of the Bank with the following mandate:
* Review economic and financial conditions in the economy.
* Determine appropriate stance of policy in the short to medium term.
* Review regularly, the CBN monetary policy framework and adopt changes when necessary.
* Also communicate monetary/financial policy decisions effectively to the public and ensure the credibility of the model of transmission mechanism of monetary policy.
Crypto: LINK price hits all-time high, passing $8
LINK has been one of the biggest winners, reaching a new all-time high at $8.33
As altcoin prices surge, LINK has emerged as one of the biggest winners. Data obtained from Glassnode, a crypto analytic data firm, showed that liquidity pouring into the fast-growing crypto asset has hit all-time high. Note that this is not just in terms of price, but also in terms of on-chain adoption.
Amongst the altcoin surge of the past week, LINK has been one of the biggest winners, reaching a new all-time high at $8.33 yesterday, although currently sitting at around $7.30.
Just recently, LINK exchange deposits spiked again bringing net flow back into the positive numbers, as more LINK flows to exchanges.
As altcoin prices surge, $LINK has emerged as one of the biggest winners.
With liquidity pouring into the asset, it is hitting all-time highs not just in terms of price, but also on-chain metrics.
Read more in our latest Glassnode Insights 👇https://t.co/LVpDlevXBp
— glassnode (@glassnode) July 14, 2020
Crypto behaviour analytics platform, Santiment, in it feeds detailed that its on-chain volume, along with social volume and daily active addresses, is a “great triple thread to track.” These macros help track whether a given crypto asset is poised to continue its bullish momentum, and in LINK’s case it shows the momentum is still on
LINK is continuing to see sky-high daily active addresses, indicating just how active the network has been. The four highest outputs in network activity over the past year for Chainlink have occurred in the past six days.
$LINK is continuing to see sky-high daily active addresses, indicating just how active the network has been. The four highest outputs in network activity over the past year for #Chainlink have occurred in the past six days. https://t.co/9Vn1WSNKjX pic.twitter.com/1xVMVgfWAV
— Santiment (@santimentfeed) July 10, 2020
Chainlink is a blockchain that is designed to bridge the space between blockchain technology-based smart contracts (created by ETH), and other user programs. Since blockchains by principle can’t have access to data outside their path or network, a defi instrument is needed to facilitate data feeds in smart contracts making chainlink helping to solve such need.
Among the leading 20 cryptocurrencies in market capitalization, it is the only one in this space we view as the only top-20 token with a broad, adaptable business application that is easily explained to an average person: ChainLink is the first successful Blockchain application to interact with the outside world.