Summary of the top buisness, economic and political news in Nigeria.
- The Managing Director of Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, has urged the public to ignore rumours of financial distress in some banks. He said the NDIC had continued to closely monitor the challenges facing the industry in order to further safeguard depositors’ interest in the banking system. He listed challenges affecting the banking industry to include poor corporate governance, insider loans and non-performing loans. Link
- As the 2016 budget closes, the Federal Ministry of Finance says N1.2 trillion capital releases have been made in line with government’s increased focus on capital expenditure. “The following releases were made: Power, Works and Housing received the largest allocation of N307.4 billion. “This is followed by Defence and Security, N171.9 billion and Transport and Aviation, N143.12 billion. “Other sectors were Agriculture and Water Resources; and Education and Health,” it stated. Link
- The apex regulator of the Nigerian capital market, the Securities and Exchange Commission, has said shareholders who buy shares with fake and unverifiable names and cannot provide clear proof of ownership, will lose their entire holdings covered in the deals. Link
- The Federal Government on Wednesday at an auction raised N110 billion worth of bonds to mature in 2021, 2027 and 2037, the Debt Management Office, DMO, said in Abuja. According to DMO’s auction result obtained from its website on Thursday, fewer bonds were sold at the auction than the N140 billion anticipated. The website stated that subscriptions from investors for the July 2021 bond, stood at N17.29 billion, while that of March 2027, which was reopened, stood at N52.5 billion. Also, subscriptions for the April 2037 bond, which was also re-opened stood at N91.67 billion. Link
- Direct cash payment is now compulsory for all investors in the capital market effective from September 1st 2017. This verdict was given yesterday by the Capital Market Committee (CMC), the umbrella body of all capital market stakeholders under the leadership of the Securities and Exchange Commission (SEC). Once those shares are sold, payment is made directly into the client’s account. This is in contrast to the current practice where proceed from sale of securities is paid directly into the stockbroker’s account and the stockbrokers then deduct transaction fees and remit the balance to the client’s account. Link
- Nigerian telecoms regulator, the Nigerian Communications Commission (NCC) will soon develop a regularly-published ranking index for telecoms companies as part of measures to firm up healthy competition among telecoms firms. Link
- Securities and Exchange Commission, SEC, yesterday, disclosed that it has set aside N5 billion as seed capital for the take off of the proposed Nigerian Capital Market Development Fund, NCMDF. Link
- Nigeria’s dollar liquidity constraints are likely to persist for the foreseeable future, despite the recent improvements in foreign exchange earnings and availability, Moody’s Investors Service has said. “Oil prices are highly unlikely to return to the $100 per barrel level that would lead to greater foreign exchange inflows,” Moody’s Vice President (Senior Credit Officer and co-author of the report), Aurélien Mali, said. Link
- The N2 billion long-term facility Heritage Bank Plc and Central Bank of Nigeria under the Commercial Agriculture Credit Scheme (CACS) gave to Triton Aqua Africa Limited (TAAL) has continued to boost job creation. The fund was disbursed to enable TAAL expand its aquaculture businesses- nursery/hatchery for the production of fingerlings and brood stock in Ikeja; and earthen ponds for catfish and tilapia in Asejire, Iwo and Gambari towns in Oyo. Link
- The Bank of Industry (BoI) has reduced its interest rates for corp members under its Graduate Entrepreneurship Fund (GEF) programme, to zero per cent interest charge from 9%, as part of measures to encourage entrepreneurship and aid business growth. According to the BOI, the GEF scheme being implemented by it in partnership with the National Youth Service Corps (NYSC) Directorate is currently on the second edition and has recorded over N262.9 million disbursements to 177 successful candidates. Link
- Three subsidiaries of a Nigerian oil and gas conglomerate, Obijackson Group – Nestoil, Energy Works Technology (EWT) and B&Q Dredging have been listed on the London stock exchange. Link
- Barely a few months after Zenith bank shareholders rejected the proposed capital raising exercise, the bank has come up with another method of raising capital. In a note to the Nigerian Stock Exchange (NSE), the bank signified its intention to raise$500 million in the second tranche of its Global Medium Term Note Programme. Link
- The board of directors of Capital Hotels Plc has announced the appointment of Chief Victor C N Oyolu has the new Chairman of the Company following the retirement of Mr. G.M. Ibru and also the appointment of Mr. Robert Itawa as the new Executive Director of the Company. Link
- Unilever Nigeria Plc., has declared a dividend of N378 million following the approval of the company’s shareholders at the 92nd Annual General Meeting of the Company held in Lagos on Thursday, May 11 in Lagos. The dividend declared amidst a challenging operating year and environment translates to a dividend payout of 10 kobo gross per share to the shareholders Link
- Shareholders at the 48th Annual General Meeting of Union Bank Plc plans to launch a rights issue in the second quarter of 2017 to raise up to Fifty Billion Naira (N50 billion) in Tier 1 capital as it looks to accelerate business growth and position as a leading commercial bank in Nigeria. Link
- The Ogun State government has signed a Memorandum of Understanding (MoU) with the a private firm, Sino-African Investment Free Trade Zone Company, for the construction of a four-lane, 10- kilometre Lusada-Igbesa Ogun Quangdong Free Trade Zone road in Ado-Odo Local Government Area. Link
- Oyo State Government Thursday said it has terminated its contract of 400 registered Private Waste Contractors in the state for lack of capacity to undertake the job awarded to them.The government said the termination of contract awarded in 2013 took effect from May 5, 2017. He said it was sad that the contractors were getting money from the public, but failed to render the services. Link
- The State of Osun received the least allocation from the Federation Account Allocation Committee between January and March, collecting N1.19bn. An infographics released by BudgIT on Thursday indicated that the Rauf Aregbesola-led state got the amount after debt deductions and other obligations amounting to N7.22bn. However, Akwa Ibom got the highest allocation for the first quarter, after deductions for debts and other obligations. It received N34.88bn ahead of Rivers’ N26.83bn; Bayelsa received N22.97bn; Delta got N21.54bn; N19.03bn was allocated to Lagos, while Kano received N14.02bn. Link
- The Bill for an Act to amend the Pension Reform Act to provide for definite percentage a retiree can withdraw from his Retirement Savings Account passed second reading at the Senate on Wednesday. The bill was meant to ameliorate the sufferings of retirees who found it difficult to withdraw their benefits after retirement. It would enable retirees to withdraw 75 per cent of their benefits as lump sum after retirement rather than the current provision which allowed for withdrawal of only 25 per cent. Link
