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Emefiele sets a milestone by getting a second term

Contrary to popular view that Godwin Emefiele will be replaced as the Governor of the Central Bank of Nigeria (CBN) following the expiration of his tenor, he has made history, with news reports suggesting he would be the first CBN Governor to get a second term.

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CBN, Key lending rate, CBN to boost creative industry with N22 billion , CBN increases LDR to 65%, sets December deadline, External reserves drop by $3.2 billion in Q3’19 , Banks' loans to Oil and Gas, Power, other sectors drop by N411.8 billion 
Contrary to popular view that Godwin Emefiele will be replaced as the Governor of the Central Bank of Nigeria (CBN) following the expiration of his tenor, he has made history, with news reports suggesting he would be the first CBN Governor to get a second term.
There were rumours that the CBN seat was likely to be zoned to the North, even as a wide list of potential candidates were bandied.
Emefiele, who had been on the management team of Zenith Bank Plc since inception, was Deputy Managing Director of Zenith Bank Plc from 2001 till August 2010 when he was appointed Managing Director to succeed Jim Ovia. Before commencing his
banking career, Godwin was a lecturer at the University of Nigeria Nsukka and the University of Port Harcourt. He holds a B.Sc. and an MBA in Finance from the University of Nigeria, Nsukka.
One of the successes of Godwin Emefiele’s term as Governor of the CBN has been the opening of the I&E window and the defence of the currency. We believe that the risk of an entirely new approach is quite low following his re-appointment.
The naira’s strength over the past year confers a degree of credibility that the Governor of the CBN may wish to maintain the preservation of the currency as his top priority. As such, we believe his re-appointment in the face of relatively enough reserves significantly reduces the risk of a devaluation.
Despite reduced foreign investor participation in the Nigerian economy, the foreign reserves have been resilient.This has supported a relatively stable naira exchange rate against the dollar at both the parallel market and the I & E window. Also, despite a 50bps cut in the Monetary Policy Rate (MPR) during the last MPC meeting, we believe the CBN will not be too aggressive with loosening, as concerns over portfolio flows should remain high on the CBN’s priority list.
Despite a positive outlook for 2019, the price of oil, a major source of foreign exchange to the country, remains extremely volatile. Oil trading at lower levels poses a threat to economic stability as it could stall the accretion of reserves and threaten exchange rate stability. Therefore, portfolio flows are still a go-to buffer in order to maintain a stable exchange rate and the MPR must remain attractive enough to sustain them.
For the equities market, we expect a neutral reaction. Though Emefiele’s re-appointment possibly points to no devaluation, which is positive news for the market, we believe the market currently needs more than news about the CBN Governor to show a positive reaction.
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Hospitality & Travel

Passengers can now arrive 90 minutes before departure for domestic flights – FG

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international passengers, Coronavirus: FG enforces immediate screening of travellers at airports with new directive

The Federal Government has announced the reduction of arrival time for passengers from three hours to one hour and a half before departure for domestic flights.

This was disclosed in a tweet post by the Minister for Aviation, Hadi Sirika, through his Twitter handle on Monday, July 13, 2020.

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The minister said that the decision was arrived at after they have reviewed passenger facilitation at the airport while noting that passengers should check-in online.

In the tweet post, Sirika said, ‘’My colleagues and I have reviewed passenger facilitation at our airports, consequently I am happy to announce that, henceforth travellers are to arrive one hour and half before their departure time for domestic flights. Travellers are advised to check-in online, please.’’

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It can be recalled that the Federal Airports Authority of Nigeria (FAAN) had earlier in June issued flight resumption protocol for both international and local passengers across the country, advising passengers to arrive at the airport three hours before their time due to the new COVID-19 safety checks for domestic flight operations and five hours for international flight operations.

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Economy & Politics

Seyi Makinde Proposes N3 billion investment plan for water supply

The local governments in Oyo are advised to submit a list of 10 faulty boreholes in the LG. 

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Seyi Makinde Proposes N3 Billion plan for water supply

The Governor of Oyo State, Seyi Makinde announced the proposal of a N3 billion investment plan dedicated to water supply in rural and urban areas of the state.

Speaking through the Chairman of Rural Water Supply and Sanitation Agency (RUWASSA), Mr. Najeem Omirinde in Ibadan on Monday, he added that N500 million of the N3 billion would be used for repairing broken and faulty state-owned boreholes.

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All Chairmen of each of the Local Governments in Oyo are advised to submit a list of 10 faulty boreholes in the Local governments.

The Oyo State governor also ordered that all new boreholes must be compliant with solar-powered pumps, to enable their longevity and save costs.

Urging residents to patronize the agency if they need to dig up boreholes for water, citing that it would be cheaper if done through the state agency than with private drilling companies.

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Minister of Finance, Zainab Ahmed stated last year that Nigeria needs an estimated N36 trillion annually for the next 30 years to solve Nigeria’s infrastructure problem. The investment, although a tiny fraction of what Nigeria needs is a bold step by the Oyo State government.

 

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Economy & Politics

FG asks UK court for more time to appeal $9.6 billion arbitration judgement

Malami stated that the Evidence of P&ID’s highly orchestrated scam had only recently come to light. 

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FG asks UK court for more time to appeal $9.6 billion arbitration judgement

The Federal Government has approached a UK court to appeal for more time to appeal the $9.6 billion arbitration award against it over the breach of contract with Process & Industrial Development (P&ID) Ltd.

Nigeria has said that it needs more time to pursue its argument that the 2010 gas supply contract with Process & Industrial Development Ltd was a sham.

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The legal dispute with P&ID is coming against the backdrop of the huge drop in the country’s revenue due to the collapse in oil prices globally. Nigeria had applied to US courts in March seeking for documents from 10 banks which includes Citigroup Inc. and JPMorgan Chase & Co, in a bid to prove its corruption allegations.

P&ID, however, has denied any wrongdoing in the whole transaction, arguing that Nigeria missed its opportunity to appeal.

The Nigerian Lawyer, Mark Howard, on Monday, the first morning of a 2-day hearing, said ‘’It is very unusual in a fraud case to discover a single smoking gun. By its very nature, fraud is conducted in secret, which makes it hard to detect and justifies an extension.’

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READ MORE: The effect of the United States’ Shale Oil on Nigeria?

The legal representatives for Nigeria are seeking another hearing for the judge to decide whether any misconduct has taken place and whether it justifies overturning the contract

The Attorney General and Minister for Justice, Abubakar Malami in a statement said, ‘’Evidence of P&ID’s highly orchestrated scam had only recently come to light.’’

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It can be recalled that last year, a UK judge upheld an earlier arbitration award to P&ID, which had accumulated to about $9.6 billion. The arbitration decision was over a failed contract to build a gas processing plant in the Southern city of Calabar.

The Nigerian lawyers disclosed that they have uncovered alleged bribes to government officials and their family members dating back to 2009.

Malami in his court filing on March 24, submitted that ‘’There is good reason to believe that ministers at the highest level were involved in a corrupt scheme to steal money from Nigeria.’’

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