CAPITAL MARKET
Shareholders okay Total’s new identity, sue for increased dividend
Shareholders of Total Plc have unanimously endorsed the firm’s resolution to change its identity to Total Enegies, even as the company moves to anchor its business on a broad energy company strategy. At the company’s extraordinary yearly general meeting held in Lagos, the shareholders expressed optimism that the name change would boost the firm’s profitability and increase shareholders’ value. Specifically, the Founder of Independence Shareholders Association of Nigeria, Sunny Nwosu urged the management to ensure that every segment of the business contributes to the overall growth of the company. He also stressed the need for the company to stay ahead of trends and remain competitive in the industry. Guardian
BANKING
The Nigerian banking industry would have recorded a return on average equity (ROE) of 31.6 per cent if not for the aggressive implementation of the cash reserve requirement (CRR) policy in 2020, Agusto & Co. Limited has said. In its flagship 2021 Banking Industry Report, the rating agency said the elevated CRR level moderated the banking industry’s performance and liquidity position during the year under review. The report reviewed the banking industry structure, financial condition, the regulatory environment in addition to the macroeconomic environment and its impact on the Nigerian banking. This Day
ECONOMY
Troubles ahead, experts warn as debt servicing gulps 91% of revenue
The Federal Government spent N2.02tn on debt servicing in the first six months of this year. This figure represents 90.58 per cent of the total revenue of N2.23tn generated by the FG within the period, a development which experts said signified a dangerous trend for the economy. Technical Adviser to the Director General of the Budget Office, Alfred Okon, disclosed the figure while presenting the “Overview of FGN 2022 Budget Call Circular” report. Okon made the presentation on Thursday at a training on “Government Integrated Financial Management Information System Budget Preparation Subsystem for Ministries, Department and Agencies.” The report stated that as of June 2021, the Federal Government’s retained revenue was N2.23tn, which is 67.58 per cent of prorata target of N3.3tn for the review period. This means that the Federal Government failed to realise N1.07tn of its revenue target in the first half of the year. Punch
5.01% GDP growth yet to impact citizens’ lives, productivity –Experts
Nigerians yesterday commented on the Gross Domestic Product (GDP) figures released by the National Bureau of Statistics (NBS) in which it registered 5.01 per cent growth (year-on-year) in real terms in the second quarter of 2021.The latest growth, it said, is third quarterly growth following the negative growth rates recorded in the second and third quarters of 2020. The Q2 2021 growth rate was higher than the -6.10 per cent growth rate recorded in Q2 2020 and the 0.51 per cent recorded in Q1 2021 year on year, indicating the return of business and economic activity near levels seen prior to the nationwide implementation of COVID-19-related restrictions. The Sun
Sahara Group Provides 21% of Energy to Nigeria, Says Buhari
President Muhammadu Buhari has commended energy conglomerate, Sahara Group for hitting the landmark celebration of 25 years in business and for providing 21 per cent of power to Nigerians. “I am particularly enthused that you provide about 21 per cent of power to Nigerians and distribute 15 per cent, and going forward, Sahara Group has a vision to investing in gas development for energy, data tech and monetization, infrastructural development and in bringing energy to life in a responsible and smart way wherever energy is consumed,” the President wrote in a letter addressed to Sahara Group, dated August 26, 2021. Sahara Group is a dynamic leader in Africa’s upstream, downstream, midstream, power and infrastructure sectors and employs almost 5,000 employees from different nationalities across Africa, Asia, Europe, and the Middle East. This Day
Again, NNPC Set to Deduct N215bn from September FAAC
The Nigerian National Petroleum Corporation (NNPC) is once more set to deduct about N215.3 billion from its contribution to next month’s joint Federation Account. The aforementioned amount is a combination of N175 billion value shortfall or subsidy and N40 billion Joint Venture (JV) cost recovery. In a document obtained by THISDAY yesterday detailing the national oil company’s presentation to the Federation Account Allocation Committee (FAAC) meeting which held between 18th and 19th of August, the data showed that NNPC paid N67.280 billion to the joint account in July, in contrast to the N47.162 billion in June. The July payment was about N20 billion higher than that of June. This Day