CAPITAL MARKET
Inflation, FX scarcity trigger N140bn outflow from NGX in 8 months
With a weakened macroeconomic index as well as worsening foreign exchange crisis, latest investigations have shown that foreign investors withdrew a total of N139.39 billion from the Nigeria’s stock exchange between January and August 2021. According to the Domestic & Foreign Portfolio Investment report of the Nigerian Exchange Limited (NGX) for August 2021, foreign inflows dropped to N123.46 billion from N161.31 billion in 2020 year-to-date (ytd) while foreign outflows stood at N139.39 billion from N308.89 billion in 2020. The report indicated that as at August 31, 2021, total transactions at the nation’s bourse fell marginally by 0.39 per cent from N89.77 billion (about $218.20 million) in July 2021 to N89.42 billion (about $217.53 million) in August 2021. The Sun
BANKING
Access Bank: Bolstering Lending with Fresh Capital
The past few months have seen financial institutions venture into the debt market in order to strengthen their operations and heal from the devastating effects of the COVID-19 pandemic. This is also expected to help position lenders for another burst credit in the coming years and enable them meet pent-up demand from borrowers such as households and firms in the continent like Africa with huge infrastructure deficit. One of the financial institutions that successfully tapped the debt market recently was Access Bank Plc. The Nigerian-based tier-1 bank issued a $500 million 144A/RegS Senior Unsecured Eurobond, as part of its Global Medium-Term Note Programme. This Day
Banks’ non-performing loans average 5.4%
As the regulatory forbearance, which allowed banks to restructure their loan books, particularly in sectors vulnerable to the shocks of COVID-19, continues to work like magic wand, non-performing loans (NPLs) portfolio of the sector has tanked to 5.4 per cent. This was disclosed by the Governor of the apex bank, Mr Godwin Emefiele, at the 281st Monetary Policy Committee (MPC) meeting held on September 16 and 17, 2021 in Abuja. The NPL ratio, which measures the rate of bank loans that are either going bad because they are not being serviced adequately or have gone bad completely, opened 2021 at 6.0 per cent; 6.3 per cent at the end of February; 5.8 per cent in May and 5.7 per cent in June. The Sun
Zenith Bank: Consolidating on Retail Market
Over the last few years, Zenith Bank has deepened its penetration in the retail space. This is in in line with the bank’s ongoing strategy, which emphasises consolidating its retail play. Ultimately, the lender hopes to achieve success in the retail segment of the market akin to that of its corporate arm. This reflected the bank’s recently released audited results for the half-year (HI) ended 30 June 2021, whereby it recorded positive growth across key financial metrics despite a challenging macroeconomic environment exacerbated by the COVID 19 pandemic. According to its half-year financial results, the Group recorded a growth in profit before tax of three per cent, from the N114 billion reported in H1 2020, to N117 billion in H1 2021. This Day
ECONOMY
Naira exchanges 580 to the dollar
The naira exchanged to the dollar at 580 on Friday, while the Pound Sterling traded for 780 at the parallel market. Some Bureau de Change operators who spoke to our correspondent said that the naira to the dollar was bought and sold at 575 and 580, while the Pound Sterling was bought and sold at 775 and 780. At the I&E forex window, the naira reached a high of 415.20 to close at 414.90. The official website of the Central Bank of Nigeria’s licensed Bureau De Change operators, www.naijabdcs.com, used for the publication of exchange rates of the naira to other currencies stopped publication of rates. Punch
Forex crisis: massive job losses loom, profits shrink, say MAN, others
Stakeholders including the Manufacturers Association of Nigeria and the Association of Small Business Owners on Sunday lamented the worsening scarcity of forex in the country, saying they were already cutting costs as their profits were shrinking. MAN, ASBON and the Lagos Chamber of Commerce and Industry and industrialists in separate interviews with The PUNCH said the free fall of naira and the attendant forex scarcity had worsened Nigeria’s harsh business environment in the past two months. Some stakeholders, especially small business owners, told our correspondents that they were reducing their staff strength, warning that there would be massive job losses if forex scarcity continued. Punch
Analysts Seek Revamp of Nigeria’s Trade Policy to Unlock FX Inflows
The federal government has been advised to take urgent steps to overhaul the country’s trade policy in order to enhance foreign exchange (FX) inflow and achieve exchange rate stability. Economists, who spoke with THISDAY, attributed the current scarcity of FX in the economy, partly, to delayed release of an updated trade policy for the country. Minister of Trade, Industry and Investments, Mr. Niyi Adebayo, had said his ministry was working towards producing an updated trade policy. But several attempts by THISDAY to confirm from the minister when the policy document would be ready were unsuccessful, as he did not to respond to enquiries. This Day
