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Displaying items by tag: Nigeria's gross domestic product (GDP)

Wednesday, 28 November 2018 12:57

CBN supplies $210 mn in wholesale FOREX market, others

The Central Bank of Nigeria (CBN) on Tuesday intervened in the wholesale segment of the foreign exchange market, supplying about $100 million to dealers in that window.

In the latest round of intervention announced in Abuja, the CBN said it also injected about $55 million each in the Small and Medium Enterprises (SMEs) and Invisibles segments to meet the needs of customers.

The Director, Corporate Communications Department at the CBN, Isaac Okorafor, again assured of the Bank’s continued mediation in the interbank foreign exchange market in order to guarantee stability.

Last week, the CBN also intervened in the wholesale segment of the inter-bank foreign exchange market on Wednesday, November 21, 2018 to the tune of $210 million.a

Meanwhile, the Naira continued its stable run against the United States dollars on Tuesday, November 27, 2018, exchanging at an average of N362/$1 in the BDC segment of markets across Lagos and Abuja.

Source: Premium Times

Published in Bank & Finance
The National Lottery Regulatory Commission, NLRC, has said it sealed the premises of Nigeria Breweries Plc because of its refusal to pay the Federal Government revenue to the tune of N326 million in line with the National Lottery Act, 2005.
 
According to the commission, Nigerian Breweries Plc had conducted promotional lotteries valued at about N1.3 billion and failed to regularise such promo lotteries as required by the National Lottery Act, 2005.
 
This was disclosed by the Director-General of the commission, Mr. Lanre Gbajabiamila, adding that Nigerian Breweries denied the federal government N326 million revenues and continue to rebuff attempts to get it complied with the law.
 
He said the commission had statutory responsibilities “to enforce provisions of the National Lottery Act, 2005 and ensure the federal government is not short-changed in the transactions. The commission acted within its mandate.”
 
According to him, the commission would continue the clamp down on all illegal lottery operators anywhere they be found within the shores of Nigeria within the ambit of the National Lottery Act, 2005 and the National Lottery Regulation, 2007.
 
Gbajabiamila also described as unwarranted attack, the statement of the Director General of Nigeria Employees Consultative Association (NECA), Mr. Olusegun Oshinowo in respect of the enforcement exercise against Nigerian Breweries Plc, insisting that the commission “will not be distracted in its bid to rid the country of all illegal lottery and promotional activities whether in the manufacturing, financial, telecommunication or any other sector.
 
“The action of the commission in closing down illegal lottery operations should not be misconstrued, because lottery activities are governed by law. Anybody or organisation that violates that law will be made to face the consequences of such violations.”
 
Gbajabiamila further noted that the commission “will not join issues with Oshinowo who prefers to hide under the guise of NECA to unleash economic sabotage on the federal government, instead of encouraging its members to comply with the law.
 
“The interest of the lottery commission is to ensure that organisations who wish to carry out lottery operations comply with the provisions of the National Lottery Act and not carry out such lotteries without due regards to the law.”
 
He however said the premises of the breweries have been temporarily reopened while the commission and the management of the company continues to interface.
 
 
Source: The Ripples
 
Published in Business
The Nigerian Stock Exchange market indices further dropped on Thursday to 31,864 points over renewed pressure to sell by investors.
 
The All-Share Index on dipped by 244.12 points or 0.76 percent to close at 31,864.80 compared to 32,108.92 points on Wednesday.
 
The market capitalization also suffered a setback by shedding N89 billion or 0.76 percent to close at N11.633 trillion as against the N11.722 trillion on Wednesday.
 
Thursday’s price movement indicated that International Breweries led the losers’ table by shedding N3.35
to close at N30.20 per share.
 
Guaranty Trust Bank followed with a loss of N2.40 to close at N34, while Mobil Oil dropped N1 to close at N150 per share. Zenith Bank lost 75k to close at N23.30, just as UACN share went down by 50k to close at N9.50 per share.
 
On the gainers table, Nestle led gaining N50 to close at N1, 500 per share while Nigerian Breweries followed with a gain of 50k to close at N83.
 
The Cement Company of Northern Nigeria added 50k to close at N18.50 per share, Union Bank gained 20k to close at N5.05, while Eco Bank Transnational Incorporated advanced by 5k to close at N15.75 per share.
 
Despite the drop in market indices, the volume of shares traded rose by 52.34 percent as investors staked N2.45 billion on 349.25 million shares
transacted in 2,595 deals.
 
This was in contrast with a turnover of 229.26 million shares valued at N2.49 billion achieved in 2,726 deals on
Wednesday.
 
Diamond Bank topped as the most active stock, exchanging 208.68 million shares worth N185.36 million while FCMB Group followed with an account of 34.68 million shares valued at N53.83 million. Stanbic IBTC exchanged 15.09 million shares worth N724.72 million.
 
 
Source: The Ripples
 
Published in Business
The U.S. Department of Agriculture (USDA) has projected that Nigeria will become the world’s biggest rice importer after China.
 
According to the USDA, Nigeria’s importation of rice will jump up by a whopping 13 percent to 3.4 million metric tons.
 
The Rice Outlook report released on Tuesday, said: “China and Nigeria are projected to remain the largest rice importing countries in 2019, followed by the EU, Cote d’Ivoire, and Iran.”
 
The USDA also said that “Nigeria and Egypt are projected to account for the bulk of the 2019 import increase.”
 
This latest USDA rice outlook projection for Nigeria is however contrary to the optimism by the Federsl Government o become rice self-dependent in the nearest future.
 
It will be recalled that Vice President, Yemi Osinbajo had said earlier in the year that Nigeria will stop importing rice into the country within the next one year on account of Federal government’s interventions in rice production.
 
“We only import 2 percent of rice into the country presently and this is because we are funding agriculture and production of rice locally.
 
“Today, only two per cent of rice consumed here are imported while the remaining 98 per cent are locally produced, since we came to power, we have been funding agriculture and encouraging our farmers across the country so as to be self-sufficient in food production”, the VP had said.
 
According to data from Bloomberg terminal, rice production in Nigeria had increased more than 50 percent since 2012 to 3.7 million tons last year.
 
Domestic demand rose 4 percent to 6.7 million tons in the 2017-18 year that ended in May, leaving gap of 3 million tons.
 
 
 
Source: The Ripples
 
Published in Agriculture
The Federal Government of Nigeria on Wednesday successfully raised
a new $2.86 billion Eurobond.
 
The $2.86 billion however came at a higher interest rate, a move that may put more pressure on the country’s debt servicing to revenue ratios.
 
Analysts are of the belief that the new interest rates may drive rates paid on debts to about 70% of the revenue ratio except government is able to boost its revenue generation.
 
Nigeria at the moment spends an average of N69 of every N100 revenue servicing debts.
 
The completion of the Eurobond transaction is coming after Nigeria’s successful engagement with the Fitch rating agency, and their subsequent decision to change the outlook on the country’s sovereign rating from B+ (negative) to B+ (stable), based on improving macro-economic fundamentals.
 
The new $2.86 borrowing has however pushed Nigeria’s external debt to
$24.9 billion, which is six percent of the country’s Gross Domestic Product.
 
In the new borrowing, the Federal government sold benchmark-sized dollar bonds maturing in 2025, 2031 and 2049, which is equivalent to a 7-year, 12-year and 30-year bonds, at a price higher than its previous issuance.
 
It sold January 2049 (the 30-year bonds) at 9.25 percent compared to the 7.625 percent yield achieved on a 30-year bond a year ago.
 
The federal government also raised a 12-year bond at 8.75 percent
compared with the 7.875 percent achieved on a similar tenor in February and sold the 7-year bond at 7.625 percent.
 
The proceeds of new borrowing is expected to be used to fund the country’s N9.1 trillion ($29.8 billion) budget, which has a deficit of N2.4 trillion.
 
The deficit figure may however increased if government’s
ambitious revenue targets set out in the budget are not achieved.
 
Speaking on the successful completion of transaction, the Minister of Finance, Zainab Ahmed, said: “Nigeria is investing strategically in critical capital projects to bridge our infrastructure deficit, provide a better operating environment for the private sector, and improve the standard of living of our citizens. The proceeds of this issuance will provide critical financing for projects in transportation, power, agriculture, housing, healthcare and education as well as the capital elements of our social investment programmes. Nigeria’s Economic Recovery and Growth plan is delivering results.”
 
 
Source: The Ripples
Published in Bank & Finance
The Nigerian National Petroleum Corporation (NNPC) has said money alleged to have been diverted from the dividend from the Nigeria Liquefied Natural Gas (NLNG) company was a revolving loan to fund subsidy payments.
 
According to the NNPC, the $1.05bn revolving loan obtained from the dividend of the NLNG prevented petroleum products’ chaos in the country, adding that the loan was used to subsidise the cost of Premium Motor Spirit, popularly known as petrol, in 2018.
 
The corporation also said that it was unfortunate for the National Assembly to commence a probe into the use of the NLNG dividend.
 
It would be recalled that the Senate, on Tuesday, commenced an investigation of the alleged diversion of $1.05bn from the Nigerian Liquefied Natural Gas dividend account by the NNPC.
 
The Group General Manager of NNPC, while commenting on the development on Saturday in Abuja, said the probe by the Senate was wrong as the $1.05bn loan saved Nigeria from chaos.
 
He said: “The Senate got it wrong. Based on newspaper reports, the Senate said it was $3.5bn subsidy fund, whereas we do not have anything like subsidy fund. What we have is that we sourced for revolving loan based on the Nigeria LNG dividend to NNPC.
 
“And this is because NNPC is a major shareholder in NLNG and inter-party agencies are managing this and the figure is $1.05bn. There is nothing like $3.5bn because anything subsidy must be appropriated by the National Assembly.
 
“Now, it is important to state that if we didn’t source for that revolving loan, the nation would have been in chaos. They are not looking at that but claim we spent $3.5bn when there is nothing like that. You can’t place something on nothing.
 
“If we wanted to play safe, we would just appear before the Senate and when they say what of the $3.5bn, we will say nothing like that and that will be all. But for the sake of responsibility, we went further to clarify issues and told them what we have.”
 
Ugbamadu insisted that there would have been crisis across the country if the NNPC had not taken the step.
 
He said further: “So, the investigative panel, set up by the Senate on the Nigeria LNG dividend, is unfortunate because NNPC is the major shareholder and we utilise the dividend paid to the NNPC for importation of products and it is a revolving loan.
 
“Meaning – the NNPC is going to pay it back and if we didn’t obtain that and if the National Assembly has a leeway, it should recommend to the NNPC on what should be done because the price of petrol at N145 per litre is fixed.
 
“Major and independent marketers are not importing and you expect the NNPC to concentrate on the importation of products, which is not our core business! And if that is not done, the entire nation will be in chaos; you and I will be affected, including members of the National Assembly.
 
“It was the same National Assembly that said NNPC should do everything within its reach to ensure that the last fuel challenge is wiped out and that is exactly what we have done.”
 
Ugbamadu however said he could not provide the exact amount the NNPC is currently incurring as ‘under-recovery’ on petrol.
 
“The point is that I don’t have the figures here, but you know it varies depending on the international price of products. Except I source the figures from the PPMC (Pipelines Product Marketing Company).
 
Ughamadu said, “It is for a year. It is for 2018. That is another reason why we are not going to see queues during the Yuletide and beyond because we are augmenting what is imported with our local production. So, Nigeria will not experience fuel shortage this festive period.”The corporation’s spokesperson said it was unfortunate for the Senate to set up an investigative panel on the NLNG dividend as the NNPC controlled the largest stake in the gas company.
 
 
Source: The Ripples
Published in Bank & Finance
The Nigerian National Petroleum Corporation (NNPC) has said its crude oil and gas export sale in August 2018 was $470 million, indicating an increase of about $78 million when compared with July oil and gas export figures of $391.91 million.
 
In a statement by NNPC Group General Manager, Group Public Affairs, Ndu Ughamadu, the figures were contained in the corporation’s Monthly Financial and Operations report for August 2018 released on Wednesday in Abuja.
 
The report, which is the 37th in the series, indicated that crude oil export sales contributed $337.62 million, representing 71.83 percent of the dollar transactions compared with $283.43 million contribution in the previous month.
 
It stated further that the export gas sales during the period amounted to $132.38 million, adding that the August 2017 to August 2018 crude oil and gas transactions involved crude oil and gas export worth $5.26 billion.
 
The NNPC report explained that based on the above sales figures, a total export receipt of $450.24 million was recorded in August 2018 as receipt against $382.65 million in July 2018.
 
Contribution from crude oil during the period amounted to $336.43 million, while gas and miscellaneous receipt stood at $101.33 million and $12.48 million, according to the report.
 
A further breakdown of the figures showed that out of the export receipts, $142.31million was remitted to the Federation Account, while $307.93 million was remitted to fund the JV cost recovery for the month of August, 2018 to guarantee current and future production.
 
The state-owned oil firm said the total export crude oil & gas receipt for the period August 2017 to August 2018 stood at $5.23 billion out of which $3.74 billion was transferred to JV Cash Call as first line charge and the balance of $1.49 billion paid into the Federation Account.
 
On Naira payments to the Federation Account, the report informed that NNPC transferred N128.40 billion into Account for the month under review. It also explained that from August 2017 to August 2018, the Federation and JV received N879.02 billion and N651.4 billion respectively.
 
Providing insight into the corporation’s remittances to the national treasury, the NNPC explained that the Federation Crude Oil & Gas Revenue, Federation Crude Oil and Gas lifting, are broadly classified into Equity Export and Domestic crude which are lifted and marketed by corporation and the proceeds remitted into the Federation Account.
 
It informed that Equity Export receipts, after adjusting for Joint Venture (JV) Cash Calls, are paid directly into the Federation Account domiciled in Central Bank of Nigeria (CBN).
 
The corporation explained that domestic crude oil of 445,000 barrels per day was allocated for refining to meet domestic products supply, and payments were effected to the Federation Account by NNPC after adjusting crude & product losses and pipeline repairs & management costs incurred during the period.
 
 
Source: The Ripples
Published in Business
The Central Bank of Nigeria (CBN) has said Nigeria is leading other Africa nations and one of the top five (5) globally in remittances inflows.
 
CBN Governor, Godwin Emefiele, who made this known, however, did not mention the exact amount of inflow but simply said Nigerians in the diaspora and other African nationals sent $72 billion home last year.
 
Emefiele, who was represented at a workshop on Remittance Household Surveys by the Director, Statistics Department of the apex bank, Mohammed Tumala, on Tuesday in Abuja, also said, while quoting a World Bank report that Nigeria was one of the top five countries of the world which received about $613 billion in remittances in 2017.
 
Although, the World Bank had in the same report disclosed that Nigeria received a total of N22 billion remittances inflows in 2017.
 
In his address, the CBN boss said remittances inflows contribute substantially to foreign exchange earnings and household finances in most developing countries.
 
“Money sent home by migrant workers is among the major financial inflows to developing countries and in some cases, it exceeds international aids and grants.
 
“According to the World Bank, global remittances have risen gradually over the years to about $613 billion in 2017, of which $72 billion was received by African countries. As a recipient country, Nigeria tops African countries and is also ranked among the top five globally,” he said.
 
Emefiele added that Nigeria had taken steps to attract more remittances inflow into the nation to further develop the Nigerian economy.
 
The steps aimed at attracting Nigerians in diaspora to remit funds home, Emefiele said, include the floating of a $300 million diaspora bond by the federal government.
 
He also added that the introduction of electronic Certificate of Capital Importation to Nigerians abroad and the country’s membership of the International Association of Money Transfer Networks were parts of measures to encourage Nigerians outside the country to remit monies home.
 
Emefiele said the former statistics on remittances inflows in the country were based on bank records and staff estimates, which according to him is a “methodology with limitations.”
 
“We think that a large chunk of migrants’ remittances pass through informal channels and are thus, unrecorded.
 
“Nigeria is yet to conduct a household based remittances survey to provide scientific estimates of these informal inflows.
 
“In addition, data from banking records also come with some discrepancies due to classification challenges on the part of reporting,” he added.
 
 
Source: The Ripples
Published in News Economy
Tuesday, 06 November 2018 14:38

Guinness Nigeria grows profit by 249%

Guinness Nigeria Plc has said its profit after tax rose by 249 per cent to N6.7bn for the year ended June 30, 2018, compared to the N1.9bn reported in the previous year.
 
The firm announced a 14 per cent growth in its revenue from N125.92bn in 2017 to N142.98bn in 2018.
 
This is as the firm declared a dividend of N4.03bn following the approval by its shareholders at the 68th Annual General Meeting held recently in Abuja.
 
According to the firm, the dividend declared translates to a payment of 184 kobo gross per share to the shareholders, representing 318 per cent increase over the dividend paid in the previous financial year.
 
It said the 2018 financial year showed impressive growth as it recorded a 31 per cent improvement in operating profit from N10.2bn to N13.4bn.
 
Addressing shareholders at the AGM, the Chairman, Board of Directors, Guinness Nigeria, Mr Babatunde Savage, said the firm had demonstrated business resilience, adding that its performance showed its commitment to ensure returns on shareholders’ investments.
 
“The company’s performance for the year ended 30 June, 2018 shows impressive growth and resilience. Although the challenges in the operating environment are yet to ease, the execution of our strategy is working well as we delivered both top line growth and margin expansion while also increasing investment behind our brands,” Savage added.
 
He told shareholders that the firm would continue to focus on the three strategic pillars of productivity, expansion of its portfolio, and the execution of the commercial footprint initiatives to drive the business forward.
 
Savage noted that as the economy continued to improve, Guinness was determined to ensure sustained and steady growth in its operations to achieve improved returns on investments.
 
 
Source: The Punch
Published in Business
The Nigerian Stock Exchange (NSE) on Tuesday lifted the suspension it placed on trading in the shares of four listed companies after over a year.
 
This was contained in a notice to issuers on Tuesday by NSE Head of Listings Regulation Department, Godstime Iwenekhai.
 
Lifting of suspension placed on the shares of a company implies investors and shareholders of the company could resume trading in their equities.
 
The NSE had on July 5, 2017, August 2, 2017, and October 4, 2017 suspended trading in the shares of seventeen (17), one (1) and four (4) listed companies, respectively for noncompliance with Rule 3.1 of the rules for filing of accounts and treatment of default filing.
 
The rule provides that, “If an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will: send to the issuer a second filing deficiency notification within two business days after the end of the cure period; suspend trading in the issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the market within twenty-four hours of the suspension.”
 
 
According to the notice, the NSE however said four (4) of the twenty-two (22) companies suspended on three different occasions last year submitted their respective financial statements.
 
The four companies include Premier Paints Plc., Ekocorp Plc., Austin Laz & Company Plc. and Academy Press Plc.
 
The exchange explained that the suspension was lifted in view of the submission of the companies’ respective accounts and pursuant to Rule 3.3 of the default filing rules.
 
The rule provides that, “The suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange. The Exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension.”
 
“The general public is hereby notified that the suspension placed on the trading of the company’s shares has been lifted effective today, 6 November 2018,” NSE stated in the notice.
 
 
Source: RipplesNigeria…
Published in Business
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