Saturday 25 June 2016

Economic Crunch: Seven States Meet FG’s N90bn Bailout Conditions

Seven States in Nigeria have met the conditions to access the N90 billion Naira loan of the Federal Government.

Investigations showed that majority of the states were at different stages of meeting up with the conditions set for disbursement of the loan facility.

A top government official stated that documents of the states that had applied for the loan facility were being reviewed by the Federal Government.

As the business of cannabis continues to boom in Nigeria, so is the fangs of Nigeria Customs Agency, saddled with the responsibilities of wagging war against smuggling and illegal drugs in the country.

No fewer than 37 bags of cannabis have been seized by men and officers of the Nigeria Customs Service (NCS), the Customs Area Controller (CAC), Western Marine Command (WMC), Comptroller Yusuf Umar has said.

Federal Government of Nigeria has promised to implement the National Automotive Industry Development Plan (NAIDP), saying it is a strategic driver of industrialisation of the country’s economy.

This was made known in Lagos by the country’s Minister of Trade and Investment, Dr.Okechukwu Enelamah.

“The FGN has identified the auto industry as a strategic driver of industrialisation and committed to implementing the NAIDP,” stated the minister, in his presentation, ‘NAIDP: Setting a Strategic Implementation Framework’.

The ministers’ assurance was the first commitment the auto assemblers were getting from the President Muhammadu Buhari administration, since it assumed office that it would not scrap the NAIDP instituted by the previous administration for the nation’s industrial development.

Controller General of the Nigeria Customs Service, Col. Hameed Ali, retd, yesterday, said Nigeria lost a total of 138.9 billion, representing 35.5% in income generation expected from the agency between January and May, 2016. Naira-Dollar Naira-Dollar.

The development came as the Senate Committee on Finance directed all the revenue generating agencies in the country to henceforth prepare and submit reports of their performances on quarterly basis to the committee for assessment.

But he said the agency generated the sum total of N312. 9bn for the country within the period under review.

U.S. financial regulators on Friday said the country's financial system is functioning in an "orderly manner" after Britain voted to leave the European Union and sent markets around the globe reeling.

Some of the web’s biggest destinations for watching videos have quietly started using automation to remove extremist content from their sites, according to two people familiar with the process.

The move is a major step forward for internet companies that are eager to eradicate violent propaganda from their sites and are under pressure to do so from governments around the world as attacks by extremists proliferate, from Syria to Belgium and the United States.

YouTube and Facebook are among the sites deploying systems to block or rapidly take down Islamic State videos and other similar material, the sources said.

South African banks and financial institutions can withstand shocks after Britons voted in favour of quitting the European Union, President Jacob Zuma said on Friday.

Zuma said in a statement issued by the presidency that the Treasury and the Central Bank were in talks with financial institutions on the possible implications of the Brexit vote on Africa's most industrialised country.

The Asset Management Corporation of Nigeria (AMCON), on Friday, took over the assets of Afrijet Airlines Ltd. owned by Chief Vitalis Ibe, over an unpaid debt of almost N10 billion.

This is contained in a statement issued by Mr Jude Nwauzor, Head, Corporate Communications, AMCON, which was obtained by the News Agency of Nigeria (NAN), in Lagos.

The statement said the takeover was based on an interim injunction granted against the airline by Justice Chuka Obiozor of the Federal High Court, Lagos Division.

Financial experts in Nigeria have described the Central Bank of Nigeria’s decision to leave the Naira afloat without correspondence economic recovery programme as a bad idea.

They told the News Agency of Nigeria (NAN) in Lagos that given the present challenges, economic recovery should have preceded the policy for effective implementation.

U.S. Banks Get Hammered After UK Votes to Leave the European Union

U.S. banks were getting clobbered in premarket trading Friday after the United Kingdom voted in favor of leaving the European Union in an unprecedented vote.

Shares of Goldman Sachs sank more than 6 percent before the opening bell, while Morgan Stanley's dropped more than 7 percent. JPMorgan Chase and Bank of America were also weighed down by the U.K. vote, trading about 4.8 percent and 6 percent lower, respectively.

Bank of England governor Mark Carney has sought to calm financial market fears about the impact of the UK’s Brexit vote by insisting that Threadneedle Street will take any measures needed to secure economic and financial stability.

In a statement choreographed to follow David Cameron’s announcement that he intended to step down as prime minister, Carney said contingency plans drawn up by the Bank and the Treasury would now swing into action.

In the face of the current epileptic power supply being faced by Nigerians, The Minister of Power, Works and Housing, Mr. Babatunde Fashola has appealed to industrialists, directors of companies and other employers of labour in the country not to panic or downsize their staff strength saying that the Federal Government has put in place a plan that would ensure progressive supply from incremental to steady and then uninterrupted electricity regime nationwide.

Banks In Germany Groan Under Low Interest Rates

Banks in Germany are currently facing interest rate crisis and this is not a good outlook for citizens, trade partners and vested interests across the globe.

Brexit Spreads It’s Contagious Fangs Across EU Bond Markets

Brexit vote has led to the fall of German 10-year bond to a record low of minus 0.5. Although yields have bounced back to 0.09%, this is still an 18 basis point fall on the day. But Italian, Spanish, Portuguese and Greek bond yields have all risen on the news. As a result the spread between Italian/Spanish and German bond yields has widened by a quarter of a point; Portugal has widened over Germany by almost a third; and Greek yields by more than a point. Ewen Cameron Watt of BlackRock, the fund management group, says that further euro zone integration looks less likely - bad news for peropheral countries.

Dangote Set To Launch Nigeria’s First Private Refinery

Africa’s richest man, Aliko Dangote, plans to launch Nigeria’s first private crude oil refinery by 2019 while almost doubling his cement production on the continent by adding plants in eight countries as he shrugs off a regional economic downturn.

Dangote told Reuters the $12 billion refinery would have a capacity of 650,000 barrels a day, cornering the market in Africa’s most populous country, where fuel shortages are a perennial problem.

Until recently, Nigeria was Africa’s biggest crude oil producer but it imports 80% of its fuel because poor maintenance means its four refineries never reach full output.Its current daily consumption is 260,000 barrels, according to the International Energy Agency.

Currencies, stocks and bonds plunged across Africa after the U.K.’s vote to leave the European Union triggered a slump in oil and other commodities and sent investors scurrying for safe assets.

South Africa’s benchmark share index fell the most since May 2010 to a third weekly decline, led by stocks with listings in London and by diversified mining companies. The rand dropped to a record against the yen and by the most since 2008 against the dollar before paring the decline, while yields on dollar bonds from Ghana to Kenya rose. Gold miners rallied by the most since 2008 before trimming gains as the precious metal, seen as a haven in times of turmoil, soared.

For people who don’t know what ‘Ghost Worker’ is, let me break it down for you, ‘Ghost workers’ are imaginative names smuggled into Government payroll by greedy individuals/cartel in Government establishment/Ministries in order to earn salary/benefits in those names.

It has been revealed that The Federal Government of Nigeria and 10 other states lost over N538bn to thousands of ghost workers in the last five years, investigations by Saturday PUNCH have revealed.

Egg is a daily consumable in many Nigerian menu. It is consume by nearly everyone in the country one way or the other.

However, prior to the Ramadan fast that is currently being observed by Muslims in the country, a crate of egg was sold between N500 and N600 naira at the whole sale prices while in retail shops, it was sold between N650 and N700 naira respectively. However, since the beginning of the fast, a crate of egg now go for between N900 and N850 in major cities while the prices are N50 and N30 naira lesser in adjoining communities.

The UK has had its credit rating outlook downgraded to "negative" by the ratings agency Moody's after the country voted to leave the EU.

Moody's said the result would herald "a prolonged period of uncertainty".

Meanwhile, PM David Cameron is under pressure to speed up "divorce" talks with the EU after Brussels said exit negotiations should start immediately.

Trump arrived in Turnberry, Scotland on Friday to officially open his golf resort there and quickly embarrassed himself by tweeting that Scots were “going wild” over Britain’s decision to leave the EU. The majority of Scotland had voted to remain.This mistake has made many people to ask if Trump actually keeps tap of issues before reaction or just reacts for the purpose of doing so.

Profitable SMEs To Venture Into In Nigeria

Despite the current economic downtown in Nigeria that is largely caused by the drop in the price of crude and lack of policy direction of the present administration, there are some sectors in the SMEs scale that are still making it real big in the country.

To tap into the sectors, you must first of all drop the ‘certificate mentality’ which Nigeria is known for and be ready to get ‘dirty’ and mingle with the so called ‘illiterates’ who are playing big in those sectors.

The following are the areas you can tap into, they require little or no experience, little investment and with zeal and consistency, your reward is sure.

Food Business: Despite the fact that people are crying of lack of money, it does not stop them from eating.

New Jersey Senate Passes $15 Minimum Wage ... But Gov. Christie May Veto

The New Jersey Senate passed a bill Thursday that would gradually raise the state minimum wage to $15 an hour. Currently it's $8.38.

The measure has already been approved by the state Assembly, so the next stop is Gov. Chris Christie's desk.

The expectation, however, is that Christie will veto it. But his spokesman would only say that the governor has to see the final piece of legislation before making that call. Nevertheless, Christie has been highly critical of the proposal, citing it as "reckless."

If Christie doesn't veto the bill, New Jersey would become the third state -- behind California and New York -- to be on track toward a $15 minimum. And just last week, the District of Columbia passed a similar measure that the mayor is expected to sign.

ExxonMobil’s deal to secure some oil blocks in Nigeria is under investigation by the Economic and Financial Crimes Commission, according to documents obtained by The Guardian of the United Kingdom.

ExxonMobil, the world’s largest oil company, was said to have secured the lucrative oil rights in 2009 by beating out China’s fourth-largest oil producer for access, despite apparently underbidding its rival by $2.25bn.

The Guardian said a letter addressed to an ExxonMobil’s subsidiary from the Federal Ministry of Petroleum Resources showed the acceptance of a 2009 bid of $1.5bn for a 20-year lease on the Oso, Ekpe, Edop and Ubit oil fields, which produce about 580,000 barrels per day between them – close to a third of Nigeria’s crude oil production of about 1.8 billion bpd, according to the Organisation of Petroleum Exporting Countries.

Due to constant drop in the revenue of the Federal Government of Nigeria, the Government of the country said it is faced with the prospect of borrowing to meet the monthly civil service wage bill which is estimated at N165 billion.

Minister of Finance, Kemi Adeosun, who had met with protesting workers of her ministry on Wednesday, said in a statement in Abuja yesterday that she does not have any power to pay N1.2 billion, which was not in the budget of the Ministry.

The minister said she had put all government departments to real squeeze in finances as the country grapples with the financial crisis.

The price of cooking gas has hit an all-time high in Nigeria, selling for N4,000 from the previous price of N2,500.

In reaction to the price increase, consumers have expressed their frustrations over the escalating price of the commodity. Some consumers who spoke to Daily Sun at the premises of some retail outlets Thursday in Lagos said they have resorted to kerosene and other energy sources. ‘‘I have been out of cooking gas since Saturday and all efforts to get the product has been abortive. The only place I saw it insisted on N4,000. That, to me, is on the high side. Please, help us appeal to government to address the situation,’’ said Mrs. Linda Opara, a housewife.

Pound Collapses To A 31-Year Low As Britain Quits EU

The pound collapsed to a 31-year low and there was pandemonium on currency, equity and oil markets Friday as Britain voted to leave the European Union, fueling a wave of global uncertainty.

Sterling crashed 10 percent to $1.3229 at one point, its weakest level since 1985, while the greenback itself slumped below 100 yen for the first time in two-and-a-half years as traders fled to safety.

In the weeks leading up to Thursday’s historic vote, there had been widespread warnings that a “Brexit” would cause a rout across global markets that would wipe trillions off valuations, just months after a painful China-fuelled sell-off.

The doomsday scenario appeared to be playing out as markets suffered one of their worst days since the 2008 financial crisis after final results confirmed one of the EU’s big three economies would leave the bloc after four decades.

Fidelity Bank Plc has denied sacking its workers, as well as stifling union activities with its operations.

The bank, in a letter to The Nigerian Labour Congress (NLC) dated June 21, 2016, said it was not among the banks that had either laid off its staff or stifled union activities, saying that the NLC’s position does not represent the true position of affairs in the bank.

NEXIM, CBN Meet With Stakeholders On N550bn Export Funds

In order to work a mutual beneficial relationship on how best to apply the N550 billion budget for export by the Central Bank of Nigeria, The Nigerian Export Import Bank (NEXIM) have held a stakeholders engagement meeting in Lagos, South West Nigeria. The engagement, which centred on the implementation strategy had in attendance stakeholders from both the CBN, NEXIM Bank, Exporters among others.

Addressing the participants, Bashir M. Wali, AG. Managing Director/Chief Executive, Nigerian Export Import Bank said the aim was to obtain strategic inputs and share perspectives towards achieving the nation’s common objective of diversifying the Nigerian economy as well as improving and broadening the contribution of the non-oil export sector to national development.

European Union Advises Nigeria To Endorse EPA Deal

The European Union (EU) has continued its push for Nigeria’s endorsement of the Economic Partnership Agreement (EPA) stating that with globalisation, Nigeria cannot live in isolation for the sake of its economy.

The propriety or otherwise of Nigeria signing the EPA has pitched manufacturers and other members of the Organised Private Sector (OPS) against the EU. Most of them are insisting that signing the agreement as it is will hurt the manufacturing sector and the economy.

The council of the Nigerian Stock Exchange (NSE) yesterday stepped down proposed resolutions on demutualisation with a view to further engage with key stakeholders on the ways and processes for the smooth conversion of the Exchange from member-owned entity into a company based on shareholdings.

At the annual general meeting yesterday in Lagos, president, Nigerian Stock Exchange (NSE), Mr. Aigboje Aig-Imoukhuede, said the resolutions on demutualisation were stepped down because of the need for further consultation.

Skye Bank Plc’s ‘Reach for the Skye’ Millionaire promo season one has produced 36 millionaires nationwide.

In celebration of this landmark achievement, the bank yesterday hosted a cross-section of the promo-made millionaires in Lagos. The event was part of the activities to mark the successful conclusion of the first phase of the promo. The millionaires were drawn from various parts of the country.

Blackberry has reported a $670m (£450m) net loss in the last three months, almost triple the loss it made in the previous quarter.

The fall was due to restructuring costs and a write-down of some assets.

Without one-off costs, the Canadian mobile phone company posted a $14m profit.

Despite the hit, Blackberry shares gained in early trading as it said losses for the whole year would be lower than expected.

Chief executive John Chen said greater efficiency and strong growth in software and services would trim its losses.

He said losses would be around 15 cents per share, compared with analysts' forecasts of 33 cents per share.

Volkswagen has agreed to pay $10.2bn (£6.9bn) to settle some claims in the US from its emissions cheating scandal, according to reports.

Most of the money would compensate 482,000 owners of two-litre diesel cars programmed to distort emissions tests.

Owners could receive between $1,000 and $7,000, depending on their car's age.

The agreement could still change when it is officially announced by a judge on Tuesday, sources said.

The management of Zenith Bank Nigeria Plc has paid a visit to the embtled Ekiti State Governor, Ayo Fayose over the controversies surrounding the funding of his 2014 election.

In a statement released by his Media Adviser, Lere Olayinka reveals that ‘Top management team of Zenith Bank Plc on Thursday evening came to beg the Ekiti State Governor, Mr Ayodele Fayose, over the involvement of the bank in the funding of the June 21, 2014 governorship election of the governor.

The team was led by an Executive Director, Sola Oladipo. It also had two zonal directors of the bank and the Ado-Ekiti branch manager.’

According to Lere, ‘When accosted by newsmen, the ED said they only came to see the governor.

Nigeria in May exported 1.89 million barrels per day, contrary to fears that crude export has dropped to as low as 1.3 million barrel per day. Data released by Windward, a maritime intelligence firm showed that Nigeria’s crude oil exports in May dropped by just 62,000 barrels per day (bpd) from April, with exports still reaching 1.89 million bpd. Bonga oil field ...alleged source of the massive spill Windward tracks all exports coming from Nigeria including crude oil, condensates and ship-to-ship transfers, so its figures are nearly always higher than estimates of crude oil production alone.

Nigeria’s Economy Worsens – Fitch

International rating agency, Fitch Ratings, Thursday downgraded Nigeria’s credit ratings, indicating increased likelihood that the country will not be able to repay its debt obligations.

Citing increased fiscal and external vulnerability, slow fiscal and monetary adjustments and renewed insurgency in the Niger Delta, the Fitch downgrade Nigeria’s Long-term foreign currency Issuer Default Rating (IDR) to ‘B+’ from ‘BB-‘ and Long-term local currency IDR to ‘BB-‘ from ‘BB’. In a statement issued Thursday Fitch said that, “The Outlooks are Stable. The issue ratings on Nigeria’s senior unsecured foreign-currency bonds have also been downgraded to ‘B+’ from ‘BB-‘. The Country Ceiling has been revised down to ‘B+’ from ‘BB-‘ and the Short-Term Foreign-Currency IDR affirmed at ‘B’.”

The Nigerian Stock Exchange All-Share Index recorded the highest gain in eight months after the NSE market capitalisation appreciated by N242bn on Wednesday. The market last recorded this performance in October last year.

The NSE ASI rose to 30,127.82 basis points from 29,422.71 basis points recorded on Tuesday, as market capitalisation also soared to N10.347tn from N10.105tn.

A total of 31 stocks appreciated in value, while 16 surged. An aggregate of 541.869 million shares valued at N7.93bn exchanged hands in 5,727 delas.

The naira strengthened against the United States dollar in the new interbank market on Wednesday as the Central Bank of Nigeria sought to stabilise the market by selling dollars.

The naira closed at 282.80 per dollar, after earlier dropping as much as 0.5 per cent, down from 284.5 on Tuesday.

The CBN has intervened in the market by selling foreign exchange since it ended the currency’s 16-month fix of 197-199 per dollar on Monday. It sold $4bn in the spot and forwards markets that day to clear a backlog of demand for hard currency, and followed that with about $100m of sales on the spot market on Tuesday.

U.S. stock futures were sharply higher this morning, as Britons began voting on whether their country should remain in the European Union trading block. Wall Street broke a two-session winning streak Wednesday. Oil prices were higher this morning. (CNBC & Reuters)

The pound advanced to a six-month high against the dollar this morning, after the latest opinion polls — taken before voting started — favored Britain staying in the EU. The U.K. currency has advanced 3 percent so far this week.

Until the Brexit voting closes at 5 p.m. ET, or 10 p.m. ET London time, media restrictions in Britain are in place. After the votes have been counted, an indication of the final result could emerge at around 11 p.m. ET, or 4 a.m. London time.

Credit: CNBC

Stanbic IBTC Names Best Sub-custodian in Nigeria

Global Finance Magazine has named Stanbic IBTC Bank as “Best Sub-custodian” in Nigeria for 2016 .

The London-based Global Finance magazine, organisers of the awards, announced that for the 2016 awards, it expanded the scope of the survey to include sectors such as Depositary Receipt Banks, Securities Lenders, Prime Brokers, Collateral Managers and Trust Services Providers.

The latest win makes it the sixth time in a row Stanbic IBTC Bank will be adjudged the best in the country, in recognition of its leadership in the sector.

Chief Executive, Stanbic IBTC Bank, Yinka Sanni, stated that winning the award again this year, particularly with the current financial challenges, is a testament to the bank’s strong management, systems and innovative solutions, and its leadership of Nigeria’s custody sector.

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) and the Federal Inland Revenue Service (FIRS) have moved in to assist states on how to raise their revenue due to the current economic challenges.

During a separate visit to the Akwa Ibom State Commissioner for Finance, Akan Okon, both agencies stressed that the federal government was worried about the failing economic situations, which has taken a hard toll on finances of federal and state governments .

The leader of the FIRS delegation, Mr. Innocent Ohagwu told the Akwa Ibom State Finance Commissioner that the team was in the state to see how to work hand in hand with the state governments to step-up revenue generation in view of the present economic situation in Nigeria.

The three tiers of government shared a total of N305.128 billion for the month of May as the Federation Account Allocation Committee (FAAC) concluded it’s plenary in Abuja on Wednesday, June 22, 2016.

The increased allocation, which is N23. 628 billion higher than the N281.500 billion shared on April was attributable largely to improved collections in mineral and non-mineral receipts.

Of the N305.128 billion shared, the federal government received N187.367 billion while the states and local governments got N95.035 billion and N73.268 billion respectively.

The sum of N18.423 billion is for 13 per cent Derivation to oil and gas producing states.

Nigerian Port Authority Projects Rise in 2016 Revenue Due To Naira Floats

Revenue from Nigeria’s ports may beat initial estimates this year after the country abandoned a peg on the naira in favour of a more flexible, market-driven exchange rate policy, to alleviate dollar shortages that had been hurting businesses.

“By floating the naira and appointing primary dealers that are going to make dollars available, people can continue their businesses, which is good for the ports,” the Chief Executive Officer of the Nigerian Ports Authority (NPA), said in an interview with Bloomberg.

“Once the economy is moving, I will get much more,” he said, referring to 2016 earnings projections.

Nigerian billionaire and Africa’s richest person, Aliko Dangote, fell 25 places on the Bloomberg Billionaires Index on Monday as the naira tumbled on its first day of trading without a peg to the United States dollar.

Dangote’s fortune fell $3.7 billion, knocking him to No. 71 on the Bloomberg ranking, down from No. 46 on Friday.

The majority of Dangote’s $12.7 billion fortune is derived from a 91 per cent stake in Dangote Cement Plc, which shed two per cent in trading Monday.

More than 1,280 executives, including directors from 51 FTSE 100 companies, have signed a letter backing the UK's membership of the European Union.

The Remain camp said the letter to the Times showed "unprecedented" support from across business and finance.

However, entrepreneur Sir James Dyson and other businessmen have made the case for a Leave vote.

Wednesday is the last official day of campaigning ahead of the UK's referendum on membership of the EU.

The UK will go to the polls on Thursday to decide whether to remain or leave the 28-country bloc.

The current economic challenges being faced by the Government of Nigeria as a result of the unstable policies of the Government, especially in the area of its monetary policies has led my graduates who are daily churned out by the numerous Universities and other Tertiary institutions without Job in sight to seek refuge in learning of trade and many going into businesses.

Between the month of May and June 2016, over 5,000 people have been sacked by the financial sector with more to be sacked, according to insider in one of the National Banks who spoke with me said the challenges the banking sector is facing was largely caused by the Treasury Single Account, TSA, policy of the Federal Government, where Government’s funds are moped into a single account, managed by the Central Bank of Nigeria, leaving the commercial banks with less funds to trade with, hence they have no option than to cut cost by laying off staff.

After two days of protest by workers of the ministry of finance which led to a total shut down of business activities at the headquarters of the ministry in Abuja, Nigeria, the Minister of Finance, Mrs Kemi adeosun on Wednesday finally showed up at the ministry.

The finance minister who had for the past two days avoided the protesting workers by staying away from the office arrived at the ministry at about 8am with her convoy amidst tight security.

Online banking all over the world is supposed to make banking easy and swift. But when you get to many internet banking centres in Nigeria, especially in the rural area, majority of the mounted Automated Teller Machines (ATM) lack cash or have never worked. The few ATM with cash, you find a lot of queues of people waiting to use the service. Most times close to a thousand of people on a line, spending twice the amount of hours while ordinarily behind the counter, withdrawer shouldn’t take more than 15 minutes.

In big cities like Lagos, Portharcourt, the banks are trying to outdo one another in the area of online banking and personal banking, however, most of the ATM especially in less commercial areas, constantly fail customers, largely due to lack of service, cash etc thereby eroding the essence of personal banking and the cashless policy of the Central Bank of Nigeria.

The Asset Management Corporation of Nigeria (AMCON) on Tuesday moved swiftly to enforce the order of the Federal High Court in Lagos which granted the application to restrain NICON Investment Limited, Global Fleet Oil and Gas Limited and their owners, Jimoh Ibrahim, from dealing with any assets or funds belonging to them.

Following the court order, the AMCON debt recovery team on Tuesday immediately swung into action and took over Mr. Ibrahim’s assets in both Abuja and Lagos.

Morocco's C. Bank Keeps Benchmark Interest Rate Unchanged At 2.25 Percent

Morocco's central bank kept its benchmark interest rate unchanged at 2.25 percent on Tuesday saying the inflation forecast is consistent with the price stability objective.

The National Union of Mineworkers (NUM) said on Tuesday it had rejected an improved wage offer from South African power utility Eskom as it still fell short of its demands.

"We have rejected the offer and we will now get a new mandate from the workers so that we can continue to engage," Helen Diatile, the union's chief negotiator told Reuters.

Saturday 25 June 2016

Friday 24 June 2016

Thursday 23 June 2016

Wednesday 22 June 2016

Tuesday 21 June 2016