CAPITAL MARKET
Value of Banks’ Stocks Dwindle by N81.04bn on Weak Earnings, FX Challenges
Amid foreign exchange challenges, weak corporate earnings and foreign investors exit, the value of listed banks’ stocks on the Nigerian Exchange Limited (NGX) tumbled by N81.04billion in the first 11 months on 2021. As at the close of trading in November 2021, the overall market capitalisation of 14 listed banks on the NGX was at N3.53trillion as against N3.6trillion it opened for trading this year. Consequently, the NGX banking index between January and November 2021 also dropped by 0.6 per cent to close at 390.78 basis points from 393.02 basis points when the stock market opened for trading. This Day
Onyema: Central Counterparty Aims Transit Capital Market to Era of Possibilities
The Nigerian financial services sector is agog as all is now set for the formal launch of NG Clearing Limited, the first central counterparty (CCP) in West Africa. The launch of NG Clearing precedes the trading of the first exchange-traded derivatives in the Nigerian Capital market and opens new opportunities for investors, stakeholders, and other players in Nigeria’s capital market. The Chairman of the Company’s Board of Directors, Mr. Oscar Onyema, in a statement said CCP represents the maturity and transition of the Nigerian capital market to a new era of clear possibilities, calling on market stakeholder to join in the celebration of CCP in Nigeria and the first out of West Africa as an epochal achievement. This Day
BANKING
Five banks’ interest income drops to N376bn, experts blame CBN cash reserve policy
The combined net interest income of five publicly-quoted commercial banks has declined by N48.69bn in the last one year, according to the financial statements of the lenders analysed by our correspondent. Specifically, the five banks’ net interest income fell by 11.45 per cent from N425bn in September 2020 to N376bn in the same period of 2021. The revenue of commercial banks consists of net interest income and non-interest income. The net-interest income is the spread earned after interest-bearing liabilities are deducted from the revenue generated from a bank’s interest-bearing assets. Punch
ECONOMY
Nigeria records zero revenue from oil export as subsidy hits N199bn
Nigeria got no revenue from crude oil export in the month of October despite an average daily oil production of 1.417 million barrels in the month of September, latest report by the Nigeria National Petroleum Corporation (NNPC) has shown. NNPC on its report to the Federation Account allocation Committee (FAAC) released at the weekend disclosed that petrol subsidy for October was N199 billion. Vanguard
Fuel subsidy hits N1.03tn, NNPC to deduct N199bn from federation account
Amid plans by the Federal Government to remove subsidy on petroleum products next February, a government report shows the subvention has gulped N1.03tn in the first 10 months of this year. The document also indicates the Nigerian National Petroleum Company Limited will deduct N199bn for the payment of subsidy in December this year, OKECHUKWU NNODIM reports The Nigerian National Petroleum Company Limited has put the amount spent on subsidising Premium Motor Spirit, popularly called petrol, between January and October 2021, at N1.03tn. Punch
LCCI: Nigeria May Exceed N6.25trn Budget Deficit in 2022
The Lagos Chamber of Commerce and Industry (LCCI) has warned that the federal government’s deficit financing in 2022 might exceed the projected N6.25 trillion due to low public revenue mobilisation in the economy. The LCCI made this observation during its 133rd Annual General Meeting (AGM), where it attributed the weak component of the Foreign Direct Investments (FDIs) in the first half of 2021 capital importation to foreign investors’ declining interest in bringing their FDIs to Nigeria. This Day