₦airaland Forum

Treasury Bills Rate Weakens to 3.5% as Demand Wanes
https://businesspost.ng/economy/treasury-bills-rate-weakens-to-3-5-as-demand-wanes/

MTN, FCMB Join NSE 30 Index as Oando, PZ, Forte Oil Exit
https://businesspost.ng/economy/mtn-fcmb-join-nse-30-index-as-oando-pz-forte-oil-exit/

NAICOM Gives Insurance Firms Fresh Recapitalisation Deadline
https://businesspost.ng/economy/naicom-gives-insurance-firms-fresh-recapitalisation-deadline/

Investors Resumes Trading in Omatek Ventures Shares
https://businesspost.ng/economy/investors-resumes-trading-in-omatek-ventures-shares/

Police Parade First Bank Staff Involved in Foiled Abuja Robbery
https://businesspost.ng/general/police-parade-first-bank-staff-involved-in-foiled-abuja-robbery/

By Modupe Gbadeyanka

Minister of Information and Culture, Mr Lai Mohammed, has disclosed that the integrated mills in the country currently produce about 150,000 bags of rice daily and about 35 million bags per annum.

Mr Mohammed made this disclosure on Monday while addressing newsmen during a press conference to roll out the achievements of the present administration led by President Muhammadu Buhari.

The Minister said the giant strides of this government, which commenced its second term of four years on May 29, 2019, were already being felt in the agricultural sector, stressing that “today, Nigeria is closer to attaining self-sufficiency in rice production than at any time in the country’s history.”

He mainly attributed this to “the border drill (or closure) that has drastically reduced rice smuggling into the country and catalysed rice production by our farmers across the country.”
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According to him, “We recently visited some of Nigeria’s 34 integrated rice mills as well as rice clusters in Kano. The rice mills are either operating at full capacity or have doubled their production.”

Mr Mohammed noted that, “Before the drill, there were 12.2 million rice farmers in Nigeria, but now six million people, mostly youths, are venturing into rice production.”

“Before the drill, farmers were cultivating rice twice a year, now that has increased to three times a year, and some rice farmers are now venturing beyond rice cultivation to milling, packaging and marketing,” he added.
ALSO READ SONA Group’s Contribution to Growth Lauded

The Minister said the closure of the country’s land borders “has curbed the smuggling of rice and other prohibited items into the country, led to significant seizures with estimated monetary value of over N3.5 billion, reduced local fuel consumption by 30 percent and reduced the importation of arms, munitions and drugs.”

He said since the borders were closed, “terrorists and other criminals are finding it hard to procure arms and ammunition while criminal elements no longer make their way into the country through the land borders. This has resulted in reduced cases of insecurity, whether its kidnapping, banditry, armed robbery or other violent crimes.”

According to him, “Smuggling of petroleum products out of Nigeria has been drastically curtailed,” noting that “the Nigeria Customs Service was recording about N4.5 billion daily. Since the drill started, the figure has increased to between N5 billion and N8 billion daily.”
ALSO READ FG Desires Indian Training for NSCDC, NPS, Others

He stated that, “The exercise has provided a unique platform for the various participating agencies to operate jointly, thereby strengthening inter-agency collaboration and reducing animosity.”

“It is also necessary to place on record that this is the first exercise in recent times, that military, paramilitary as well as intelligence and security agencies have come together to conduct such an exercise which is akin to a National Security exercise,” he declared.

https://businesspost.ng/general/nigeria-currently-produces-150000-bags-of-rice-daily-lai-mohammed/

Fitch Lowers Outlook on 4 Nigerian Banks to Negative
https://businesspost.ng/banking/fitch-lowers-outlook-on-4-nigerian-banks-to-negative/

Basketmouth to Beat Last Closing Gong for 2019 at NSE
https://businesspost.ng/showbiz/basketmouth-to-beat-last-closing-gong-for-2019-at-nse/

Treasury Bills Rates May Hit 3% at Next PMA
https://businesspost.ng/economy/treasury-bills-rates-may-hit-3-at-next-pma/

Naira Gains N5 Against Pound Sterling, Sells at N472
https://businesspost.ng/economy/naira-gains-n5-against-pound-sterling-sells-at-n472/

No BDC Operator Gets Forex at N305/$—ABCON
https://businesspost.ng/economy/no-bdc-operator-gets-forex-at-n305-abcon/

NSE Index Opens Week Bullish, Rises 0.73%
https://businesspost.ng/economy/nse-index-opens-week-bullish-rises-0-73/

Treasury Bills Rates May Hit 3% at Next PMA
https://businesspost.ng/economy/treasury-bills-rates-may-hit-3-at-next-pma/

PZ Cussons Nigeria Records Half-Year Loss, Negative EPS
https://businesspost.ng/economy/pz-cussons-nigeria-records-half-year-loss-negative-eps/

Access Bank Begins Closed Period as Board Meets for FY2019 Results
https://businesspost.ng/banking/access-bank-begins-closed-period-as-board-meets-for-fy-2019-results/

Buhari's Critics Making Nigeria’s Debt Looks Big—FG
https://businesspost.ng/economy/buharis-critics-making-nigerias-debt-looks-big-fg/

By Adedapo Adesanya

The federal government of Nigeria has reiterated that there is no need for panic over the country’s rising debt profile, blaming critics of the administration of President Muhammadu Buhari of amplifying the issue so as to discredit the government.

Minister of Information and Culture, Mr Lai Mohammed, made this claim on Monday during a media briefing on the achievements recorded by the present administration in the outgoing 2019.

Mr Mohammed noted that the country’s debt was still within a reasonable range, emphasising that the panic was not needed because it was not backed by enough numerical facts, giving room for exaggeration.
ALSO READ Why Nigeria’s Mutual Funds Now Attract International Interest—Experts

According to the Debt Management Office (DMO), Nigeria’s external debt as at June 2019 was $27.1 billion, with the 36 states and Abuja owing $4.2 billion. A further breakdown showed that domestic debt level as at June was $56.7 billion, with the states owing $12.9 billion.

In Naira terms, external debt stood as N8.3 trillion in June and domestic debt was N17.3 trillion, making the country’s total debt at N25.5 trillion.
ALSO READ European Stocks Stretch Losses for Fourth Straight Session

Business Post recently reported that the debt stock to Gross Domestic Product (GDP) of Nigeria reduced to 18.99 percent as at June 30, 2019 from 19.09 percent as at December 31, 2018, citing data sourced from the debt office.

However, despite the present debt level of the country, President Buhari requested for an approval for an external borrowing of $29.96 billion from the National Assembly on November 28, 2019. The President claimed that the new loan would be used to for the nation’s development and to tackle the multidimensional poverty in the country.
ALSO READ Total Nigeria Expresses Desire Deliver Value to Shareholders

Prior to the emergence of Mr Buhari’s administration into office in 2015, the nation’s debt profile was N12 trillion. However, in 2016, the administration embarked on a borrowing spree which currently put the nation’s total debit profile at N25 trillion today. From 2016 to the first quarter of 2019, Nigeria has borrowed over N12 trillion.

https://businesspost.ng/economy/buharis-critics-making-nigerias-debt-looks-big-fg/

By Dipo Olowookere

The new Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr Muhammad Nami, has approved a 30- day window to enable taxpayers in the country obtain Tax Clearance Certificate (TCC).

This information was announced by the tax agency in a statement personally signed by the tax chief and then issued on Sunday via the official Twitter page of the organisation.

Mr Nami, in the statement titled Facilitating 2020 Tax Clearance Certificate (TCC) Issuance, explained that this move was designed to make things easy for taxpayers and assist them meet their obligations as they might need TCC.
ALSO READ Nigeria Inflation Slightly Drops to 15.91% in October

The Executive Chairman noted that the offer to ease issuance of TCC was in accordance with the provisions of Section 101 (1) of CITA LFN 2004 and in conformity with Self-Assessment Regulation, 2011.

He warned though that FIRS will not fail to invoke the provisions of the law, including enforcement and imposition of lien should it be apparent that a taxpayer has misled the FIRS to issue a TCC.

“Following the numerous complaints received from our esteemed taxpayers with respect to difficulties encountered before obtaining Tax Clearance Certificate (TCC) and the fact that taxpayers need TCC to enable them to, inter alia, seek and obtain contracts and loans, renew permits, registrations, franchises, agreements and/or licenses that will invariably generate revenue from which taxes will be paid, management has looked into the above complaints and has taken steps to ease the process of obtaining TCC.

“Consequently, notice is hereby given that the service has put in place machinery to issue 2020 TCC for all eligible taxpayers from January 2, to January 31, 2020.

“The service may not hesitate to use enforcement activities including imposition of lien on bank accounts of such defaulting companies to recover any outstanding debts when it discovers that the taxpayer has misled the service in her duty to observe tax compliance.

“The issuance of TCC to ease the burden of taxpayers is in line with the provisions of Section 101 (1) of CITA LFN 2004 and in conformity with Self-Assessment Regulation, 2011.

“Taxpayers are, therefore, encouraged to take advantage of this initiative and apply for their 2020 TCC, as soon as possible.”

https://businesspost.ng/economy/firs-gives-30-day-grace-for-tax-clearance-certificate/

Shareholders in Dilemma Over Wapic Insurance Rights Issue
https://businesspost.ng/economy/shareholders-in-dilemma-over-wapic-insurance-rights-issue/

Staco Insurance Removes Turoti as Chairman, Appoints Aliyu
https://businesspost.ng/jobs/staco-insurance-removes-turoti-as-chairman-appoints-aliyu/

Making 2020 Better and Rewarding Investment Year
https://businesspost.ng/featureoped/making-2020-better-and-rewarding-investment-year/

By Dipo Olowookere

To Fund Exercise from N731bn Retained Earnings

A total 1.704 billion ordinary shares of Dangote Cement Plc are to be mopped up from the stock market by the board via a share buy-back programme.

But before this exercise is carried out, shareholders of the company will first approve it at an Extraordinary General Meeting (EGM) fixed for Wednesday, January 22, 2019 at the Eko Convention Centre, Lagos.

Business Post reports that the total units of the shares to be purchased from shareholders represents 10 percent of the total issued shares of the cement giant; 17,040,507,405 ordinary shares.

It was disclosed that at the EGM, shareholders will meet to determine what price the shares should be bought, but from what the firm said, the offer price must not be more than 5 percent above the five-day average trading price and this would be calculated using the five days preceding the offer date.
ALSO READ Chat Commerce, Key to Growing Nigerian Businesses—Van Rensburg

It was further stated that the 1,704,050,741 shares of Dangote Cement proposed to be repurchased from the market would be cancelled after the exercise in order to reduce the amount of share capital.

The programme is expected to be funded from the company’s retained earnings, while none of the board of directors would be allowed to participate in the buy-back programme, which would be executed through an open market and or self-tender offer at a prevailing market price. As at the close of business on Friday, December 27,2019, shares of Dangote Cement were traded at N140 each.
ALSO READ Foreign Countries Using Media to Kill our Rice Sector—Governor

“The company recorded a profit after tax of N390.3 billion for the year ended December 31, 2018 and N154.4 billion for the nine months ended September 30, 2019. Dangote Cement retained earnings stood at N848.7 billion as at December 31, 2018 and N731.2 billion as at September 30, 2019. The company intends to fund the programme from its reserves,” a notice to the Nigerian Stock Exchange (NSE) stated.
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“The buyback will be completed within 12 months from the date of receipt of the approval of shareholders for the programme. The board may delay, amend or terminate the programme at any time by releasing an announcement to that effect to the NSE, irrespective of whether any or all of the shares have been repurchased.

“Unless otherwise approved by the regulator, the company shall not implement the programme within 15 days prior to the publication of its annual or interim results,” the disclosure added.

https://businesspost.ng/economy/dangote-cement-to-mop-up-1-704bn-shares-from-stock-market/

By Adedapo Adesanya

Nigeria could swap the Naira for the single currency being proposed by the Economic Community of West African States (ECOWAS) if good monetary and fiscal policies are put in place, Business Post analysis shows.

Originally intended to be launched in 2000, the ECO, which is the currency being considered, has been postponed multiple times; and the newest target date set is 2020.

With this, it means six member countries, including Nigeria, Liberia, Sierra-Leone, and Ghana; could swap their currencies for the ECO. ECOWAS countries like Benin Republic, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo currently jointly use the CFA franc.

The 15-member group had announced at the end of an ECOWAS summit in Abuja in July 2019 that part of its plans was to redress the region’s economic problems. It was stated at the gathering that the adoption of ECO could set things in motion.
ALSO READ Business Editors in Nigeria Launch New Association

Mahamadou Issoufou, the president of Niger Republic, who also doubles as the ECOWAS chairman, explained that there was a real firm political will to increase efforts ahead of the January 2020 deadline.

“We are of the view that countries that are ready will launch the single currency and countries; that are not ready will join the programme as they comply with all six convergence criteria,” Issoufou said at the past ECOWAS meeting.

However, the African Development Bank Group (AfDB) in a report said; “The 2020 deadline for the single currency will most like be postponed again unless West African countries can align with their monetary and fiscal policies.”
ALSO READ N68b Maturing Bills to Buoy Stability in Financial System Liquidity

But ECOWAS has since pushed ahead as it stated that it will be working with the West African Monetary Agency (WAMA), the West Africa Monetary Institute (WAMI), and central banks of West African nations to speed up the implementation of a new road map for the proposed single trade currency.

On Nigeria’s part, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, recently noted that the proposed date for the commencement of a single-currency regime for West Africa may not be realised as many countries within the region have yet to meet the criteria for the monetary union.

She said only Togo had met criteria to adopt the ECO, and with only the country achieving this, it would be difficult to operate the single currency regime by next year, which is just few days away.
ALSO READ T-Bills Market Slightly Bullish as CBN Sells N18.7b Bills

To be able to adopt the single currency, key demands for entry are for countries to have a deficit of less than 3 percent of gross domestic product (GDP), inflation of 10 percent or under and debts worth less than 70 percent of GDP, but Nigeria’s GDP stands at less than 2.3 percent (Q3 ’19) while its inflation as at November 2019 was 11.85 percent.

However, despite the increase in the Nigeria’s debt profile, the country’s debt-to-Gross Domestic Product (GDP) ratio is still well below the average for sub-Saharan Africa and Africa as a whole as the International Monetary Fund (IMF) noted last month.

https://businesspost.ng/economy/what-can-make-nigeria-abandon-naira-for-ecowas-currency/

Dangote Cement to Mop up 1.704bn Shares from Stock Market
**To Fund Exercise from N731bn Retained Earnings
https://businesspost.ng/economy/dangote-cement-to-mop-up-1-704bn-shares-from-stock-market/

Paradigm of Changing Business Environment
https://businesspost.ng/featureoped/paradigm-of-changing-business-environment/

What Can Make Nigeria Abandon Naira for ECOWAS Currency
https://businesspost.ng/economy/what-can-make-nigeria-abandon-naira-for-ecowas-currency/

A.G. Leventis Nigeria Shares Under Full Suspension
https://businesspost.ng/economy/a-g-leventis-nigeria-shares-under-full-suspension/

Investors Buy N251bn OMO Bills at 13.28%
https://businesspost.ng/economy/investors-buy-n251bn-omo-bills-at-13-28/

C&I Leasing Extends Closing Date for Rights Issue
https://businesspost.ng/economy/ci-leasing-extends-closing-date-for-rights-issue/

Stock Investors Gain N157bn After Christmas
https://businesspost.ng/economy/stock-investors-gain-n157bn-after-christmas/

Naira Depreciates to N362/$ at Black Market Friday
https://businesspost.ng/economy/naira-depreciates-to-n362-at-black-market-friday/

Major NASD Exchange Indices Close Flat After Christmas Break
https://businesspost.ng/economy/major-nasd-exchange-indices-close-flat-after-christmas-break/

Cost of Doing Business in Nigeria to Rise 2020—LCCI
https://businesspost.ng/economy/cost-of-doing-business-in-nigeria-to-rise-2020-lcci/

Crude Oil Trades Mixed at Global Market Friday
https://businesspost.ng/economy/oil-trades-mixed-at-global-market-friday/

Investors Buy N251bn OMO Bills at 13.28%
https://businesspost.ng/economy/investors-buy-n251bn-omo-bills-at-13-28/

New CBN Guidelines to Weaken Banks' Earnings, Boost Lending
https://businesspost.ng/banking/new-cbn-guidelines-to-weaken-banks-earnings-boost-lending/

Sell Pressure Pushes Treasury Bills Yields to 5.52%
https://businesspost.ng/economy/sell-pressure-pushes-treasury-bills-yields-to-5-52/

NSE Begins New Free Float Rules January 2
https://businesspost.ng/economy/nse-begins-new-free-float-rules-january-2/

NASD OTC Market Closes Flat as Activity Level Drops
https://businesspost.ng/economy/nasd-otc-market-closes-flat-as-activity-level-drops/

1,065.4% Rise in Demand for Dollars Weakens Naira at I&E
https://businesspost.ng/economy/1065-4-rise-in-demand-for-dollars-weakens-naira-at-ie/

Oil Prices Increase as US, China Advance Trade Deal
https://businesspost.ng/economy/oil-prices-increase-as-us-china-advance-trade-deal/

NSE Market Indices Bearish, Down 0.09%
https://businesspost.ng/economy/nse-market-indices-bearish-down-0-09/

Sell Pressure Pushes Treasury Bills Yields to 5.52%
https://businesspost.ng/economy/sell-pressure-pushes-treasury-bills-yields-to-5-52/

The World Bank has said half of the poor people in the world live in Nigeria and four other countries, including two other African nations and the two others in Asia.

In a tweet on Christmas day, the global financial institution said apart from the giant of Africa, the four other countries accommodating those in extreme poverty are India, Bangladesh, Ethiopia and the Democratic Republic of Congo (DRC).

“Half of the world’s poor live in these 5 countries: India, Nigeria, Democratic Republic of Congo, Ethiopia and Bangladesh,” the lender posted on its verified Twitter page.

According to the World Bank, the five countries account for 85 percent (629 million) of the world’s poor, saying to make significant continued progress towards the global target of reducing extreme poverty (those living on less than $1.90 a day) to less than 3 percent by 2030, large reductions in poverty in these five countries will be crucial.
ALSO READ Presidency Says Dangote not Member of APC Campaign Council

Wikipedia defined poverty, which is associated with the poor, as not having enough material possessions or income for a person’s needs. Poverty may include social, economic, and political elements.

In 2012 it was estimated that, using a poverty line of $1.25 a day, 1.2 billion people lived in poverty. Given the current economic model, built on GDP, it would take 100 years to bring the world’s poorest up to the poverty line of $1.25 a day. UNICEF estimates half the world’s children (or 1.1 billion) live in poverty.
ALSO READ Boko Haram: Army Declares Journalist Ahmed Salkida Wanted

The World Bank forecasted in 2015 that 702.1 million people were living in extreme poverty, down from 1.75 billion in 1990. Extreme poverty is observed in all parts of the world, including developed economies. Of the 2015 population, about 347.1 million people (35.2%) lived in Sub-Saharan Africa and 231.3 million (13.5%) lived in South Asia.
ALSO READ Rigworld Seals Deal With Scottish Firm Hydrasun

According to the World Bank, between 1990 and 2015, the percentage of the world’s population living in extreme poverty fell from 37.1% to 9.6%, falling below 10% for the first time. The People’s Republic of China accounts for over three quarters of global poverty reduction from 1990 to 2005. Though, as noted, China accounted for nearly half of all extreme poverty in 1990. In public opinion around the world people surveyed tend to incorrectly think extreme poverty has not decreased.

https://businesspost.ng/general/50-of-worlds-poor-people-live-in-nigeria-4-others/

Dangote Cement Picks ex-Lafarge Africa Boss as New GMD/CEO
**As Makoju Quits
https://businesspost.ng/jobs/dangote-cement-picks-ex-lafarge-africa-boss-as-new-gmd-ceo/

By Dipo Olowookere

A man carrying out banking business without license and obtaining money by false pretence to the tune of N5.1 billion has been arrested by the Economic and Financial Crimes Commission (EFCC).

The suspect, Mr Suani Neenwi, a Ponzi scheme operator, was arraigned before Justice I. M Sani of the Federal High Court sitting in Port Harcourt, Rivers State on Monday on a three-count charge by the anti-graft agency.
ALSO READ Nigeria Loses $157bn to Illicit Financial Flows in Nine Years

It was said that Mr Neenwi operated two companies; Bluekey Technologies Nigeria Limited and Cityclyk Bluekey Payment to defraud unsuspecting members of the general public. The EFCC informed the court that these two firms were run as a pseudo bank, with money taken from depositors, who were promised to receive 10 percent returns on their investments every week.
ALSO READ BREAKING: Oyo Govt Demolishes Yinka Ayefele's Music House

But the business soon went awry and the EFCC was invited to salvage the situation. He was subsequently apprehended and taken to court yesterday.

At the arraignment on Monday, the agency said the suspect committed an offence contrary to Section 1 (1) (a) of the Advance Fee Fraud and Other Related Offences Act No. 14, 2006 and punishable under Section 1(3) of the same Act.

https://businesspost.ng/general/man-dupes-depositors-n5bn-in-port-harcourt/

Securities Lending 'll Deepen Liquidity, Make Investors Richer—SEC
https://businesspost.ng/economy/securities-lending-ll-deepen-liquidity-make-investors-richer-sec/

Man Dupes Depositors N5bn in Port Harcourt
https://businesspost.ng/general/man-dupes-depositors-n5bn-in-port-harcourt/

NSE Places Full Suspension on CCNN Shares
https://businesspost.ng/economy/nse-places-full-suspension-on-ccnn-shares/

Nigeria's Stock Market Closes 12:30pm for Christmas
https://businesspost.ng/economy/nigerias-stock-market-closes-1230pm-for-christmas/

Naira Appreciates at Black Market, Depreciates at Interbank, I&E
https://businesspost.ng/economy/naira-appreciates-at-black-market-depreciates-at-interbank-ie/

How Finance Bill Will Boost Earnings of Insurance Companies
https://businesspost.ng/economy/how-finance-bill-will-boost-earnings-of-insurance-companies/

NASD Exchange Closes Flat Despite Rise in Transaction Value
https://businesspost.ng/economy/nasd-exchange-closes-flat-despite-rise-in-transaction-value/

Possible Ease in Oil Output Cuts Drives Prices Higher
https://businesspost.ng/economy/possible-ease-in-oil-output-cuts-drives-prices-higher/

By Modupe Gbadeyanka

The popular Lagos Continental Hotel has been acquired by an oil company, 11 Plc, formerly known as Mobil Oil Nigeria Plc, the energy firm has confirmed.

The hospitality company was acquired from the Asset Management Company of Nigeria (AMCON) after top executives of the two organisations held several intense talks.

Mobil, in a notice to the Nigerian Stock Exchange (NSE), said it plans to partner with a major international brand to provide world class service synonymous with all its operations.

According to the disclosure, the new asset will require significant investment to raise standard from the current state to the levels consistent with similar facilities in major cities around the world.

Mobil said it currently owns several prime properties in its real estate portfolio fully rented to blue chip tenants, saying the acquisition of Lagos Continental Hotel was consistent with its desire to delivery “our interests given the current challenging environment in the downstream sector of the petroleum industry.”

It stated that, “Fuel margins in the industry have remained stagnant for several years in the highly competitive and regulated industry. We anticipate that this asset will contribute positively to earnings and underlines the faith of its stakeholders in the future of the Nigerian economy.”

Concluding, the energy company assured its “numerous stakeholders that we remain committed to delivering outstanding value and robust returns in the years ahead.

“However, in the short term, cashflow and EBITDA could be under strain as a result of funds needs to renovate and upgrade the hotel to attract a 5-star branding. We also like to assure the employees of the hotel that they will be treated with the utmost dignity and respect during the transition and seek their cooperation to make the take over a smooth one.”

Business Post reports that shares of Mobil closed flat today at the exchange at N147.90 per unit.

https://businesspost.ng/travel/mobil-acquires-lagos-continental-hotel-from-amcon/

Mobil Acquires Lagos Continental Hotel from AMCON
https://businesspost.ng/travel/mobil-acquires-lagos-continental-hotel-from-amcon/

Sovereign Trust Insurance Lists Fresh 4.17 billion Shares
https://businesspost.ng/economy/sovereign-trust-insurance-lists-fresh-4-17-billion-shares/

NSE Approves Listing of Obu Cement Company Shares
https://businesspost.ng/economy/nse-approves-listing-of-obu-cement-company-shares/

Profit Takers Run Away With N28bn at Stock Market Friday
https://businesspost.ng/economy/profit-takers-run-away-with-n28bn-at-stock-market-friday/

Financial Stocks Contribute 73.82% to Equity Turnover
https://businesspost.ng/economy/financial-stocks-contribute-73-82-to-equity-turnover/

Nigeria's Debt to GDP Ratio Drops to 18.99%—DMO
https://businesspost.ng/economy/nigerias-debt-to-gdp-ratio-drops-to-18-99-dmo/

By Dipo Olowookere

The sum of N28 billion was lost at the Nigerian Stock Exchange (NSE) on Friday as a result of activities of profit takers, who quickly booked profit ahead of the Christmas break this Wednesday.

The nation’s stock market would be closed for business on Wednesday and Thursday for Christmas and Boxing Day before resuming for transactions on Friday.

During last Friday’s trading day, the local bourse depreciated by 0.22 percent as a result of selloffs in some large-cap stocks at the market, including Guinness Nigeria and others.

By 2:30pm, when activities were wrapped up, the All-Share Index (ASI) reduced by 58.10 points to 26,526.35 points from 26,584.45 points, while the market capitalisation went down by N28 billion to N12.804 trillion from N12.832 trillion.

The loss was mainly influenced by the 1.55 percent decline suffered by the banking index, 1.11 percent loss in the oil/gas index and the 0.42 percent drop in industrial goods sector. They overpowered the 0.83 percent growth posted by stocks in the consumer goods sector. The insurance index closed flat.

Business Post reports that activity level was mixed during the session as the volume trades improved by 12.29 percent to 341.6 million from 304.2 million, while the value reduced by 25.74 percent to N2.3 billion from N3.2 billion.

Union Diagnostic dominated trading last Friday, transacting 166.1 million units worth N33.2 million, while FCMB followed with 29.6 million shares valued at N54.0 million.

Zenith Bank traded 23.9 million equities for N440.4 million, GTBank exchanged 23.0 million shares valued at N680.0 million, while Fidelity Bank transacted 14.6 million equities worth N31.8 million.

On the losers’ chart, Guinness Nigeria led with a price depreciation of N3.55 to finish at N32.05 per unit, while Dangote Sugar lose N1.65 to settle at N14.90 per share.

NASCON declined by N1.30 to end at N11.95 per unit, Cadbury Nigeria went down by N1.05 to close at N9.60 per unit, while BOC Gas declined by 60 kobo to finish at N5.50 per unit.

On the gainers’ table, Nigerian Breweries took the top spot after rising by N5.25 to settle at N57.95 per unit and was trailed by Unilever Nigeria with a growth of N1.75 to close at N20.20 per share.

Julius Berger rose by 50 kobo to finish at N19.50 per unit, Stanbic IBTC appreciated by 30 kobo to trade at N37.50 per share, while Flour Mills gained 20 kobo to sell at N19.50 per unit.

https://businesspost.ng/economy/profit-takers-run-away-with-n28bn-at-stock-market-friday/

By Dipo Olowookere

The Debt Management Office (DMO) has disclosed that the debt stock to Gross Domestic Product (GDP) of Nigeria reduced to 18.99 percent as at June 30, 2019 from 19.09 percent as at December 31, 2018.

The agency made this disclosure while rolling out the Medium–Term External Borrowing Plan of the federal government, which is meant to stimulating economic growth, diversify the economy and bring about investments in human capital.

In the plan, the debt office emphasised that the present level of Nigeria’s debt to GDP ratio was very low when compared with many advanced nations like the United States of America (USA).

However, it stressed that where the problem lies for the Africa’s largest economy is its debt service to revenue ratio, which the DMO said was high at 57 percent in 2017 and 51 percent in 2018.

This was attributed to the increase in the debt stock and relatively high domestic interest rates, noting that it was for this reason government has decided to borrow externally through the $30 billion loan is seeks approval for from the National Assembly.

“Nigeria has a ceiling of 25 percent on the total public debt stock to GDP, which it has operated within,” the debt office said in the plan viewed by Business Post, adding that the debt service/revenue ratio “provides strong justification for the current drive to increase oil and non-oil revenues significantly.”

According to the DMO, “The United States of America, United Kingdom and Canada had debt/ GDP ratios of 105 percent, 85 percent and 90 percent in 2017 which were much higher than that of Nigeria, but because they generate adequate revenues, their debt service/revenue for the same year were 12.5 percent, 7.5 percent and 7.5 percent respectively.

“The case was also similar for Brazil, South Africa, Kenya and Mexico who had higher Debt/GDP than Nigeria (74 percent, 53 percent, 57 percent and 46 percent respectively), but had lower debt service/revenue of 32.20 percent, 11.4 percent, 13.2 percent and 13.6 percent respectively.”

“This is clear evidence that Nigeria’s revenues are low. This is further demonstrated by Nigeria’s tax to GDP ratio of only 6 percent in 2018 compared to: Kenya-15.7 percent, Morroco-21.8 percent, Cameroon-12.2 percent and South Africa-27.5 percent, all for 2017. These, attest to the fact that Nigeria has a Revenue challenge rather than a debt problem,” the DMO added.

The debt office threw its weight behind the borrowing plan, saying it would be used to develop infrastructure in the country like roads, railways, waterways and power, which it said “will help to unleash the potentials of the Nigerian economy.”

“Other loans such as those for the educational sector will contribute to the development of Nigeria’s human capital, while loans for agriculture will be used to diversify the economy.

There will also be funding for development finance institutions to enhance access to finance for micro, small and medium scale enterprises,” the debt office further said.

https://businesspost.ng/economy/nigerias-debt-to-gdp-ratio-drops-to-18-99-dmo/

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By Modupe Gbadeyanka

The board of Greif Nigeria Plc has agreed to delist shares of the company from the Nigerian Stock Exchange (NSE) next year.

However, to make this effective, the board of directors is calling for an Extra-Ordinary Meeting (EGM) to be held on January 23, 2020 to seek approval of the company’s shareholders.

Also, at the EGM, the board wants the authorisation of the investors to sell the company’s properties in Lagos; the one at its present head office and another property around the area.

A notice from Greif Nigeria said the board took the decisions to exit the stock exchange and offload the buildings at a meeting held on Thursday, December 12, 2019 in Lagos.
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“Sequel to the board meeting of Greif Nigeria held on Thursday, December 12, 2019, at Greif Board Room, No 1, Alapata Road, Apapa, Lagos at 11:00am, the company wishes to inform the Nigerian Stock Exchange and its shareholders/investing public of the following resolutions passed at the meeting;

“Convening an Extraordinary General Meeting of the company for Thursday, January 23, 2020 at the company’s office, No. 1 Alapata Road, Apapa, Lagos at 11.00 a.m. for the following purposes:
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“That the company’s land and buildings known and designated as ‘Factory at No. 1 Alapata Road, Apapa, Lagos and Residence at No. 3/5 Barracks Road, Apapa, Lagos’ be sold at a price and upon such terms and conditions negotiated and determined by the board;

“That the company’s shares be delisted from the Nigerian Stock Exchange;

“That the board be and is hereby authorised to take such steps or actions and to do all things as may be necessary to give full effect to the above-mentioned resolutions,” the disclosure said.
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Concluding, the company said it also wants approval for the closure of register of members and transfer books from Monday, December 23 to 24, 2019, with both dates inclusive.

Business Post reports that Greif Nigeria Plc (formerly Van Leer Containers (Nigeria) Plc) manufactures and markets steel drums in Nigeria as well as plastic containers and sheet metal. Earlier this year, the firm announced the suspension of its operations in the country.

https://businesspost.ng/economy/greif-nigeria-to-exit-stock-exchange-sell-lagos-properties/

By Dipo Olowookere

The downward review of the stop rates of treasury bills by the Central Bank of Nigeria (CBN) at the primary market continued on Wednesday, December 18, 2019.

Business Post reports that the apex bank further slashed the rates to as low as 4 percent during the primary market auction today, where the debt instrument worth N7 billion was offered to mainly local investors.

The bills were sold in three tenors, with N2 billion worth of the 91-day bill offered for sale, another N2 billion worth of the 182-day bill auctioned and N3 billion worth of the 364-day bill floated by the central bank.

From results of the exercise, the bills were oversubscribed as the CBN received offers valued at N100 billion. An analysis showed that traders staked N24.7 billion on the three-month instrument, N18.7 billion on the six-month instrument and N56.6 billion on the 12-month instrument.

But when the allotments were made, the central bank sold N2 billion worth of the 91-day bill, N2 billion worth of the 182-day bill and N3 billion worth of the 364-day bill to market participants.

For the stop rates, the apex bank cleared the 91-day instrument at 4.00 percent, lower than 5.00 percent it offered last week; the 182-day instrument cleared at 5.00 percent, lower than 6.19 percent at the previous session; while the 364-day instrument cleared at 5.50 percent, lower than 6.88 percent at the last exercise.

Business Post reports that on the average, the treasury bills stop rates in Nigeria are now at 4.83 percent, lower than 6.02 percent.

The next auction is expected two weeks' time, precisely on Thursday, January 2, 2020 and if this trend continues, the debt instrument could be issued at 3.00 percent by the apex bank.

It is important to note that stop rates of OMO bills are still at double digits. As at the last exercise on Monday, the central bank issued the long-dated maturity at 13.28 percent. Another OMO auction is anticipated on Thursday (tomorrow) and the rates are expected to remain unchanged.

The CBN has continued to lower treasury bills rates at the primary market to spur lending in the real sector of economy, while those for OMO bills are left high to attract foreign investors so as to boost the nation’s foreign reserves, which dropped below $40 billion some weeks ago.

https://businesspost.ng/economy/treasury-bills-stop-rates-further-falls-to-4/