CAPITAL MARKET
Stockbrokers to Unfold New Strategy for Economic Development
As the Nigerian economy is in dire need of capital injection, stockbrokers are warning up to unfold new strategy that will enable the federal government source long-term fund from the capital market. The federal government’s budget deficit currently stands at N6.25 trillion. Despite mounting agitation from the private sector on the implications on the revenue, value of the Naira and inflation, the government has maintained its borrowing spree. Meanwhile, Stockbrokers have consistently urged the government to take advantage of the capital market to raise medium and long-term funds to build infrastructure. In a statement by the Chartered Institute of Stockbrokers (CIS), the hybrid Conference with the Theme, “ Capital Market as a Catalyst for Economic Development and Sustainable Growth” This Day
BANKING
Amid Volatility, Uncertainty in Global Economy 6 Banks’ Exposure to Oil & Gas Drops by 6.3%
Amid volatility and uncertainty in the global economy, the likes of Zenith Bank Plc, Guaranty Trust Holding Company (GTCO) Plc, and four other banks’ exposure to Oil & gas sector dropped by 6.3 per cent to N3.3 trillion in half year of 2021 from N3.11 trillion in 2020. Analysis of the banks result showed that aside GTCO and Zenith Bank that recorded decline in Oil & gas exposure in the period, other banks this year increased exposure to Nigeria’s mainstay economy driver despite Government’s efforts at diversification into Agriculture and Mining. The other banks are: United Bank for Africa plc (UBA), Access Bank Plc, Fidelity bank, and Stanbic IBTC Holdings Plc. This Day
ECONOMY
Nigeria among top countries benefitting from World Bank IFC loans
Nigeria has been rated sixth among the top 10 countries with the highest exposure to funds and support from the International Finance Corporation, which is a member of the World Bank Group, whose focus is on the private sector in emerging markets and developing economies. This was contained in the IFC Annual Report 2021: Meeting the Moment. As of June 30, India led the list of countries with a benefit of $6.91bn, accounting for 10.77 per cent of the global portfolio. China with a benefit of $4.75bn accounted for 7.40 per cent while Turkey with a benefit of $4.44bn accounted for 6.92 per cent. Brazil was fourth with a benefit of $3.68bn, accounting for 5.75 per cent, while South Africa was fifth with a benefit of $2.49bn, accounting for 3.89 per cent. Nigeria was sixth with a benefit of $2bn, accounting for 3.12 per cent, while Colombia was seventh with a benefit of $1.76bn, accounting for 2.75 per cent. Punch
Budget deficit rises to N20.64tn under Buhari
The President, Major General Muhammadu Buhari (retd.), Ahmad Lawan and Femi Gbajabiamila
The President, Major General Muhammadu Buhari (retd.); President of the Senate, Ahmad Lawan and the Speaker of the House of Representatives, Femi Gbajabiamila at the 2022 budget presentation before the joint session of the National Assembly on Thursday. Budget deficit has risen to N20.64tn under the president, Major General Muhammadu Buhari (retd.), according to analysed data from the budget office. The data covered periods from 2016 to 2020. According to the budget office, more than N7.97tn was borrowed from foreign and domestic sources to fund these deficits. According to Investopedia, a budget deficit occurs when expenses exceed revenue and indicate the financial health of a country. Punch
Understanding FX, external reserves and naira value
In recent months, developments in the Nigerian foreign exchange market have elicited reactions from stakeholders, some of which reflect understanding while others do not. This piece seeks to throw light on the issues relating to foreign exchange, external reserves and naira exchange rate instability. Foreign exchange is relevant in the context of world trade, payments and capital flows into and out of a country. It is the monetary instrument for the settlement of international transactions and for financing imbalances in a country’s external payments position vis-à-vis other countries. Foreign exchange forms a major component of a country’s external reserves which according to the International Monetary Fund (IMF) consists of “official public sector foreign assets that are readily available to, and controlled by the monetary authorities. The Guardian
