CAPITAL MARKET
NB’s ‘share-for-cash dividend’ to ease profit repatriation challenge
Finance Director, Nigerian Breweries Plc, Rob Kleinjan (left); Corporate Affairs Director, Sade Morgan; Managing Director, Hans Essaadi; Legal Director/Company Secretary, Uaboi Agbebaku and Supply Chain Director, Martin Kochl during the 76th Pre-Annual General Meeting media briefing of the company in Lagos… yesterday. Succour may have come the way of foreign investors that experience dividend repatriation challenges as Nigerian Breweries Plc have created a share-for-cash dividend scheme that would enable investors to reinvest in the company and buy new shares with their dividends. Also, the company has recommended a total dividend of N12.9 billion, culminating in N1.60 per share due to every shareholder of the company for the 2021 financial year. Guardian
NGX Fosters Sustainable Financial Products Associated with Climate Change, Environmental Challenges
With sustainable finance gaining momentum globally, governments and corporate issuers are paying increasing attention to environmental, social and governance (ESG) factors, and investors, regulators and other stakeholders are encouraging more robust ESG practices. As the sustainable Exchange championing Africa’s growth, Nigerian Exchange Limited (NGX) is committed to playing an enhanced role in facilitating the financing of a sustainable future. Being a member of the Sustainable Stock Exchange Initiative (SSE) since 2013, NGX has a long-standing commitment to foster the growth of sustainable finance in Nigeria. This Day
BANKING
UBA loans to customers rose to N2.83tn in 2021 – Elumelu
THE Chairman, United Bank for Africa, Tony Elumulu, on Thursday said UBA was able to drive down its non-performing loans to a record low of 3.6 per cent in 2021, despite the growth in the bank’s loan book to N2.83tn in the same year. He disclosed this in the 2021 Annual Report and Accounts of the bank, as released at the 60th Annual General Meeting of the bank in Abuja. Elumelu assured shareholders and investors of the bank’s commitment to sustain its current growth trajectory, adding that its efforts at business diversification across Africa and beyond had continued to yield increasing returns. Punch
ECONOMY
Currency in circulation falls by N42.43bn in two months
CURRENCY in circulation fell by N42.43bn between January and March, figures obtained from the Central Bank of Nigeria have revealed. The CBN revealed in its data on currency that the currencies, which stood at N3.29tn as of the end of January, fell to N3.25tn by the end of March. The CBN recently warned Deposit Money Banks against accepting mutilated naira notes, explaining that they were not the real currencies in circulation. In a circular to the DMBs titled ‘Treatment of composed banknotes’, it said, “The management of the Central Bank of Nigeria observed with concern the increase number of composed banknotes deposited by DMBs. Punch
2022 budget deficit jumps to N7.35tn, Buhari to borrow N965bn
The President, Major General Muhammadu Buhari (retd.), has written a letter to the House of Representatives, informing the parliament that the deficit in the 2022 Appropriation Act has risen by N965.42bn to N7.35tn. Consequently, the President said the Federal Government would borrow funds to fill the gap. Buhari, therefore, called for an amendment to the Federal Government’s budget and the fiscal framework for 2022. Speaker of the House, Femi Gbajabiamila, read out the cover letter on the executive bill, titled, ‘Submission of the Revised 2022 Fiscal Framework’, and dated April 5, 2022, at the plenary on Thursday. Punch
FG allocation to shed 3.33% in new revenue-sharing formula
The Federal Government will have its share of revenue allocation reduced by 3.33 per cent if the new revenue-sharing formula proposed by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) gets approval. In the proposal, the Federal Government will take 45.17 per cent; the states, 29.79 per cent and the local government councils, 21.04 per cent.
While the Federal Government will shed 3.33 per cent, states and local governments have their share increased by 3.07 per cent and 4.4 per cent respectively. Under the current sharing arrangement, the Federal Government takes 52.68 per cent of the revenue share, states get 26.72 per cent, while local governments get 20.6 per cent. Guardian
Nigeria, others at high risk of debt distress, IMF warns
Nigeria and 72 other countries are at high risk of debt distress or already in debt distress, according to a new report by the International Monetary Fund. The report, titled “Restructuring debt of poorer nations requires more efficient coordination,” noted that low-income countries face fewer debt challenges today than they did 25 years ago, thanks in particular to the Heavily Indebted Poor Countries initiative, which slashed unmanageable debt burdens across sub-Saharan Africa and other regions. The report noted that although debt ratios were lower than in the mid-1990s, the debts have been creeping up for the past decade and the changing composition of creditors would make restructurings more complex. Punch
NPC seeks special courts to prosecute oil thieves, others
The Group Managing Director of the Nigerian National Petroleum Company Limited, Mele Kyari, has shown the House of Representatives’ Committee on Petroleum Resources (Upstream), in photos and videos, how the country’s crude oil assets are being vandalised and the products stolen. Kyari urged the National Assembly to establish a special court that would handle cases relating to oil and gas to accelerate prosecution of oil thieves. He said “I am not sure that we are short of legislation; it is life imprisonment for attack on these facilities. So, there are laws to support this. All we need to do is to increase the advocacy so that the legal process takes its course, prosecutions are done timely. Punch
