Business News
Nigeria will enjoy foreign investments before December, IMF predicts
The IMF has predicted better times for Nigeria, stressing that financial conditions in Nigeria favoured more foreign investments.
Despite the rising debt profile especially from China, the International Monetary Fund (IMF) has predicted better times for Nigeria, stressing that financial conditions in Nigeria favoured more foreign investments.
This was disclosed by Evan Papageorgiou, Deputy Division Chief, Monetary and Capital Markets Department during a session with analysts after the presentation of the Global Financial Stability Report in Washington DC.
[READ MORE: IMF: Increase tax rate to manage fiscal crisis]
This is coming after the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva issued a warning about the global economy experiencing a synchronized slowdown in growth after which she advised Central Banks to reduce their lending rates.
What you should know: Nigeria’s total debt portfolio rose to N25.7 trillion as of June 30, 2019, compared to N24.9 trillion recorded in March 2019. That is, within three months, Nigeria increased its debt by N754.56 billion, representing a 3.2% increase. This is according to the statistics from the Debt Management Office (DMO).
IMF waded into the matter, saying the issue of debts in sub-Saharan Africa as well as Nigeria is becoming more pronounced.
“Not that the debt itself creates problems. We examine some issues that debt has to be used for productive purposes but usually debt that is given under non-Pan’s Club or multilateral types of agreements, more broadly in a lot of low-income countries, particularly a lot of Sub-Saharan African countries, the issue of debt vulnerabilities is becoming more and more prescient,” Evan said.
[READ ALSO: IMF enjoins CBN to unify exchange rate, here’s why]
The IMF Financial Counsellor and Director of the Monetary and Capital Markets Department, Tobias Andrian asked that capital flows to Sub-Saharan Africa be utilized responsibly. He also predicted that more investments will flow into Africa.
“Flows of investment to Sub-Saharan Africa have been strong and are expected to reach record highs this year, so global financial conditions are favorable to countries such as Nigeria at the moment. Issuing bonds in hard currency and in domestic currency is currently possible because of the favorable global financial conditions.”
Coronavirus
Former Liberian President to sit on WHO review panel of COVID-19 response effort
Ellen Sirleaf has been picked alongside Helen Clark, to serve as co-chairs of the independent panel.
Following stern criticism by US President, Donald Trump, over their handling of the COVID-19 response efforts, the World Health Organization (WHO) has announced it will implement an independent panel to review said response efforts to the pandemic.
To this end, Liberia’s former President and West Africa’s first female President, Ellen Johnson Sirleaf, has been picked alongside former Prime Minister of New Zealand, Helen Clark, to serve as co-chairs of the independent panel. They will be responsible for selecting the other members of the panel, according to the WHO.
WHO’s Director-General, Tedros Adhanom, announced the panel will produce an interim report in a November meeting of global health ministers. Meanwhile, the substantive report would be produced by May 2021.
Tedros also said that the size of the pandemic calls for the need for a “commensurate evaluation, an honest evaluation”, adding that the WHO would be very serious with the preparation of the report.
READ MORE:COVID-19: WHO warns worst is yet to come as firm charges $2,340 for virus treatment
The WHO members in May agreed to an independent review of the organization’s response to the pandemic. Ellen Johnson Sirleaf said the review of the body’s response would be challenging but looks forward to her role in doing what she can contribute to the response of the pandemic’s challenges.
The panel will also report monthly updates on the body’s response and will not only review the WHO’s response but also the International community’s response. Tedros added that it’s time for an honest reflection on the global response, saying a response will help with lessons on the pandemic.
Economy & Politics
Presidency dismisses allegation of Osinbajo receiving N4 billion from recovered loots
The accusation was described to be an obvious campaign of lies and calumny.
The office of the Vice President has reacted to a series of tweets accusing Professor Yemi Osinbajo of instructing the embattled acting Chairman of the EFCC, Ibrahim Magu, to release the sum of N4 billion out of N39 billion that was recovered from alleged looters.
These allegations have been described as “false and baseless”.
READ ALSO: UPDATE: President Buhari appoints Prof. Gambari as new Chief of Staff
A statement that was signed by the Senior Special Assistant to the Vice President on Media and Publicity, Laolu Akande, said, “with all emphasis at our disposal, let it be firmly stated that these are totally false and baseless fabrications purposing to reflect goings-on at the probe panel investigating Mr Ibrahim Magu”.
Ibrahim Magu was relieved of his duties this week, after a probe was conducted on his activities as Acting Chairman of the nation’s anti-graft agency. He has since been replaced with Mohammed Umar.
READ MORE: Just In: DSS invites EFCC’s Acting Chairman, Ibrahim Magu for questioning)
Meanwhile, the statement by the Presidency also complained about the recent rise in people being paid to “peddle blatant falsehoods” against the Vice President and says Mr Osinbajo “will not be distracted by these obvious campaigns of lies and calumny”.
The statement added that the online publications “being criminally defamatory in nature” have been referred to law enforcement agencies for investigation.
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OFFICE OF THE VICE PRESIDENT
PRESS STATEMENT
VP @ProfOsinbajo WILL NOT BE DISTRACTED BY CAMPAIGNS OF LIES & CALUMNY pic.twitter.com/HjdGzEJVpI
— Presidency Nigeria (@NGRPresident) July 8, 2020
Financial Services
Stanbic IBTC observes closed period, as directors set to consider H1 results
The directors will also consider a proposal to pay an interim dividend to shareholders.
Stanbic IBTC Holdings Plc announced earlier today that its board of directors will meet on Wednesday, July 29, as part of preparations towards the release of the company’s consolidated and separate audited financial statements for half-year 2020. The directors will also consider a proposal to pay the company’s shareholders an interim dividend.
A statement issued by the Stanbic IBTC to the Nigerian Stock Exchange (NSE) noted that the scheduled board meeting is in tandem with guidelines contained in section 1.2 of the NSE’s rules book.
In the meantime, the bank Hold-Co has already commenced observing its closed period ahead of the release of the half-year financial statements. Specifically, Stanbic IBTC began observing its closed period on June 1st, 2020, the implication being that all insiders and their relatives have been prohibited from trading the company’s shares for more than one month now.
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Note that the Stanbic IBTC’s closed period will continue until the half-year financial statements are released. Part of the statement which was signed by Chidi Okezie (Company Secretary), said:
“In accordance with the provisions of Section 1.2 of the Rules of The Nigerian Stock Exchange (The NSE) relating to Board Meetings and General Meetings of Issuers, we would like to notify The NSE and our Shareholders, that a meeting of the Board of Directors of Stanbic IBTC Holdings PLC (the Company) is scheduled to hold on Wednesday 29 July 2020 at 1:00 pm. The meeting will discuss amongst other items, the Company’s Consolidated and Separate Audited Financial Statements for the Half-year ended 30 June 2020 as well as a proposed interim dividend.
READ ALSO: COVID-19: NSE extends time for submission of audited financial statements
“In view of the above, the closed period for the release of half-year results, which commenced on Monday, 01 June 2020 will continue to be in effect until the release of the Company’s Half-year audited financial statements.”
Recall that the last earnings report that was released by Stanbic IBTC Holdings Plc was for Q1 2020. The unaudited report showed that gross earnings stood at N61.4 billion as against N58.7 billion in Q1 2019, even though interest income for the period declined by 12% year on year to N27.5 billion. Meanwhile, profit for the period stood at N20.6 billion, an increase when compared to N19.2 billion in Q1 2019.
Stanbic IBTC Holdings’ share price closed at N30.25 at the end of today’s trading session on the Nigerian Stock Exchange. Year to date, the stock has declined by nearly -20%.
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