All the major economic news from Nigeria in 5 minutes - 10/7/2017

Summary of the top business, economic and political news in Nigeria today.

. The Federal Government has engaged an asset recovery firm to track the exact assets of tax defaulters that fail to take advantage of its nine months amnesty period under the Voluntary Assets and Income Declaration Scheme. In exchange for full and honest declaration, the government promises to waive penalties and interest that should have been paid by the defaulters on overdue tax. Link
The Central Bank of Nigeria (CBN) backed by the Monetary Policy Committee (MPC) members have lauded the convergence of foreign exchange rates, including the drop in the gap between the interbank rate and the bureau de change (BDC) from 150 per cent to 23 per cent. Link
The National Insurance Commission has released a draft of revised guidelines for microinsurance operations in Nigeria. NAICOM sent the draft guidelines to the chief executive officers of insurance and reinsurance companies, the Nigerian Insurers Association, the Nigerian Council of Registered Insurance Brokers and other bodies to make their inputs. Link
A Chinese multinational company, Shandong Ruyi Technology Group is set to invest $600 million in the textile and garment industry in Kano State. Already, talks between officials of the company and the Kano State Investment Promotion Agency have reached advanced stage, and it is expected that a memorandum will be signed in the next few months. The chairman of the state Investment Promotion Agency, Alhaji Isyaku Umar Tofa pointed out that the government was giving out free land to two companies namely; Black Rhino/Dangote Group to construct a 100 megawatt solar power plant, at the cost of $150 million and St. Meer International Investment and Management Company which would invest $120 million to finance a similar project in the state. Link
Analysts at FSDH have predicted that the June 2017 inflation rate will drop to 15.64 per cent from 16.25 per cent recorded in the month of May, 2017. The National Bureau of Statistic (NBS) had revealed that inflation rate dropped to 16.25 per cent in May 2017, 0.99 per cent lower than 17.24 per cent recorded in April. The decline reflects fourth consecutive decline in inflation rate since January 2017 as government continued to pump liquidity into the system and increased farm products. Link
The Ogun State Area Command of Nigeria Customs Service (NSC) has generated the sum of N1.1b in the last two months, with assurance to partner with genuine businessmen and women in the field of commerce and industry in the state. Link
The operations of eight brand new power stations built under the National Integrated Power Project (NIPP) by the administration of former President Goodluck Jonathan to supply 4,201 megawatts of electricity have been grounded by inadequate supply of gas to fire their turbines for power generation. Link
The Ministry of Mines and Steel Development says it will contribute $27bn about (N9.7tn) to the Gross Domestic Product by 2025. The ministry stated this in its Road Map in Abuja on Sunday, adding that the contribution would be achieved in three phases. It said that the phase one was to stabilise the sector and rebuild the country’s market confidence between 2016 and 2018, the second phase will focus on establishing Nigeria as a competitive African mining and mineral processing centre from 2016 to 2020 while the third phase would enable Nigeria to compete in the global market for refined metals and minerals from 2018 to 2030 in addition to selected ore exportation. Link
Over N88 billion debt owed by customers and the economic downturn are responsible for the slow metering of consumers in Ikeja Electric Plc. Link
Following the recent Court of Appeal Judgement directing foreign shipping firms operating in Nigeria to refund the sum of N4 trillion, being accruals from the illegal Shipping Lines Agency Charges (SLAC) collected from shippers from 2006 till date, the Nigerian Shippers’ Council(NSC) has been inundated with pleas for settlement by the multinational firms, who also have been throwing their weights around lobbying the Federal Government to set aside the judgment. Link
Chief Audu Ogbeh, Minister of Agriculture and Rural Development, has advised critics of the Federal Government yam export policy to grow the commodity. Addressing journalists in Abuja on Monday, Ogbeh dismissed the criticisms of the policy, saying that the effort was in the best interest of the nation’s economy. “With all due respect, Nigeria accounts for 61 per cent of the world output of yam. We have 60 varieties of yam in this country. “In fact, 30 per cent of the yams we produce get rotten because we don’t have facilities to preserve them.” he said. Link
The Nigerian Air Traffic Controllers Association, NATCA, has called on the Nigerian government to prevail on the defaulting members of Airline Operators of Nigeria, AON, to pay up charges. NATCA, in a statement jointly signed by both its president and general secretary, Eyaru Victor and Alawode Banji, respectively, said such payments would save the industry from impending collapse. Link
The World Bank has expressed concerns about Nigeria’s rising debt servicing costs in relations to the government’s dwindling revenue. It stated this in its newly released Global Economic Prospects report, where it also observed that the country’s economic recovery was being limited by foreign exchange controls. Link
The Minister of Finance, Mrs kemi Adeosun, on Monday said that only three million out of 180 million Nigerians possessed insurance policies to protect themselves from uncertainties. Link
The Nigerian Stock Exchange (NSE) has approved Unilever Nigeria PLC’s plan to raise N58.9 billion in new supplementary equity issue. This will pave way for the fast-moving consumer goods company to round off the pre-offer process and open subscription to the new offer. Link
Guaranty Trust Bank plc has been adjudged Nigeria’s Best Bank and Africa’s Best Bank for Small and Medium Enterprises (SMEs) at the 2017 Euromoney Awards held in London last week reaffirmed its position as a leading global brand. Link
Anchor Insurance Company Limited has paid N21 million to Bedmate Furniture Nigeria Company Limited as claims for a fire incident that occurred at its showroom in Lagos. “The payment was made to indemnify Bedmate Furniture for a claim for an incident that occurred in its showroom which was attributed to power surge/overheating of electrical appliances leading to damage to the furniture on display at its showroom II: Block 4, Plot 283, Idado, Lekki Expressway, Lagos.” Link
Microfinance bank operators in the country have called on the federal government to ensure that access to the N220 billion micro, small and medium enterprises (MSME) special development intervention fund is not politicised. This, they identified as a major impediment to achieving the goals of the fund. Link
The Coronation Merchant Bank Limited’s credit rating has been upgraded by Agusto& Co from “A” to “A+” with a stable outlook.The rating upgrade was triggered by the bank’s good asset quality, strong liquidity profile, marked improvement in profitability and over N100 billion capital base. Link
Despite the negative effects of the recession that characterised the economy during the year, Sovereign Trust Insurance Plc’s total Gross premium written has grown from N2.3 billion in the first quarter of 2016 to N4.1 billion in 2017 representing a 78 per cent growth. Link
An insurance broking firm, Insurance Brokers of Nigeria Limited, has invested over N10 billion in the insurance market. Link
The management of Wema Bank Plc. and Sterling Bank Plc. are both currently shopping for a replacement for their group managing directors (GMDs) whose tenures expired in June and December respectively, Bussiness247 Online News has exclusively revealed. Link
The Securities and Exchange Commission (SEC) has approved an extension in the period for the minority shareholders of Mobil Oil Nigeria Plc to sell their shares to NIPCO Investment Limited (NIL). In notification to the Nigerian Stock Exchange (NSE), Cordros Securities Limited, one of the financial advisers in the transaction, said SEC had approved an extension. The MTO has now close July 27, 2017. Link
New grounds have broken on the real estate market as Lagos authorities have acquired the famous Elephant Cement House, a multi-storey office complex situated at Ikeja Central Business District at a cost of N3.1 billion. The building was home to Lafarge Africa Plc, a leading Sub-Saharan Africa building materials company and a subsidiary of LafargeHolcim, owners of the commercial property. Tenants in the flagship property include Lagos government agencies, corporate organisations and leading players in the banking industry, UBA and Stanbic IBTC. Link
Cowries Alliance Nigeria Limited, a real estate development company, in collaboration with a developer, Unique Gold Alliance Limited, has begun construction of 1000 housing units in Abuja. Link
UAE’s Etisalat has terminated a management agreement with its Nigerian arm and given the business three week to phase out the Etisalat brand in Nigeria, the chief executive of Etisalat International said on Monday. Link
Vice Chairman, Senate Committee on the Capital Market, Senator Festus Ogwuma, has disclosed that the Bill to expand the scope of operations of the Chartered Institute of Stockbrokers (CIS) would be passed very soon. Link

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