Friday, July 03, 2020
Nigerian banks bleed amid world’s highest cash reserves
For every N100 deposit held by Nigerian commercial banks, about N60 idles away with the central bank as regulatory reserves earning zero interest. This means lower profitability for lenders and then stifling access to finance for millions of small businesses in Africa’s largest economy. BusinessDay investigation also revealed that for some banks, the portion of…..Read more
Diversified revenue, tax reform will spur growth post COVID-19 – experts
Finance experts in Nigeria have called for the need to diversify revenue generation sources at all levels of government while implementing a reformed tax system in order to improve economic growth in the country going forward. This was the discussion at a webinar themed “Nigeria’s Fiscal Sustainability: Imperatives, Impediments and Options” hosted by the Nigeria…Read more
Recapitalisation: Small insurers have option of merger or squeezed out by competition Dec. 31 2020
Small sized insurance firms that may not be able to meet 50 percent of the minimum paid up share capital by December 31, 2020, as directed by the National Insurance Commission (NAICOM), will face severe competition that may squeeze them out of major businesses. For companies in this category, their best option will be to…..Read more
Foreign reserves fell by $373.23m in June – CBN
The country’s foreign reserves fell by $373.23m from $36.57bn on June 1 to $36.2bn on June 29, latest figures from the Central Bank of Nigeria revealed on Thursday. According to the CBN, the reserves maintained a steady rise at a level of $33.52bn as of April 30, before commencing its downward trend in June…..Read more
Q1 petrol imports rise to 5.32 billion litres
The volume of petrol imported into the country in the first three months of the year rose by 9.24 per cent, compared to the same period in 2019, the National Bureau of Statistics has said. The NBS data showed that the country imported to 5.32 billion litres in Q1 2020, up from 4.87 billion litres in Q1 2019…..Read more
Nigerian airlines lost $2.09bn in two months – IATA
Nigerian airlines lost $2.09bn in April and June, the International Air Transport Association has said. IATA, in its report, titled, ‘Quarantine measures threaten aviation restart in Africa and the Middle East,’ noted that aviation was the worst-hit sector in Africa and the Middle East with more than 8.6 million jobs at risk….Read more
Dangote Cement raised N250bn in debt market– FMDQ
Dangote Cement Plc raised a total of N250bn in debt securities in the first half of this year, FMDQ Securities Exchange Limited has said. According to a statement, the debt securities range from its recent debut N100bn Series 1 Bond under its N300bn Bond Programme to its earlier issued N150bn commercial paper notes (series 13-16 under its N150.00 billion Domestic CP Issuance Programme), all listed and quoted on FMDQ Securities Exchange’s platform…..Read more
N240bn debt: AMCON takes over Pan Ocean’s assets
The Asset Management Corporation of Nigeria said on Thursday that it had taken over the assets of Pan Ocean Group over a debt of N240bn. In a statement on Thursday, it said, “Hon. Justice A.M. Liman of the Federal High Court, presiding over the suit between the Asset Management Corporation of Nigeria vs Everest Nominees Limited and Dr Bolaji Ogundare, a subsidiary of Pan Ocean Group has ordered AMCON and its assignee to take over all the assets of the companies.”….Read more
Local production suffers contraction, fuels unemployment concerns
Affirming the Bretton Woods institutions’ concerns about recession, the latest Purchasing Managers’ Index (PMI) for the manufacturing sector has continued to reflect the sector’s weaknesses as regards production, new orders, and employment levels….Read more
‘How border closure aided local raw materials utilisation’
Utilization of Local Raw-materials in the manufacturing sector increased marginally in the second half (H2) of 2019, attributable to the closure of the country’s land borders by the Federal Government during the period, the Manufacturers Association of Nigeria (MAN), has said…..Read more
Fitch: Nigeria’s Insurance Sector Growth Constrained by Widespread Poverty
Fitch Ratings, one of the global rating agencies, has identified the “low average earnings and widespread poverty” in Nigeria as some factors weighing on insurance affordability and the growth of the sector. The rating agency stated this in its latest Nigeria Banking and Financial Services Report for the third quarter of 2020, which THISDAY obtained Thursday…..Read more
Banks, Other Lenders Urged to Finance Africa’s Economy
The Group Chief Executive Officer, United Capital Plc, Mr. Peter Ashade, has called on financial institutions to develop innovative home-grown financing solutions to support economies in Africa in order to propel the continent’s growth. Ashade, stated this at the maiden edition of United Capital Pan Africa e-Conference with the theme: “Fostering innovative cross-border financing solutions in Africa.”….Read more
