₦airaland Forum

Niger Insurance to Restructure Share Capital, Raise N15bn
https://businesspost.ng/economy/niger-insurance-to-restructure-share-capital-raise-n15bn/

CBN Begins Last MPC Meeting for 2019 Today
https://businesspost.ng/economy/cbn-begins-last-mpc-meeting-for-2019-today/

AXA Mansard Insurance Director Resigns from Board
https://businesspost.ng/jobs/axa-mansard-insurance-director-resigns-from-board/

Crude Oil to Perform Better This Week—Analysts
https://businesspost.ng/economy/crude-oil-to-perform-better-this-week-analysts/

SEC Begins Process to Teach Capital Market Studies in Schools
https://businesspost.ng/economy/sec-begins-process-to-teach-capital-market-studies-in-schools/

N8.1bn Financial Stocks Exchange Hands in 12,488 Deals
https://businesspost.ng/economy/n8-1bn-financial-stocks-exchange-hands-in-12488-deals/

Investment Inflows into Nigeria Drop 7.8% in Q3 2019
https://businesspost.ng/economy/investment-inflows-into-nigeria-drop-7-8-in-q3-2019/

By Adedapo Adesanya

Nigeria recorded a decrease in its total capital importation in the third quarter of 2019 as the amount of investment inflows into the country stood at $5.4 million, 7.8 percent lower from the second quarter of this year, $5.8 billion, but 87.9 percent higher than the Q3, 2018 figures.

In a report released on Monday morning by the National Bureau of Statistics (NBS), it was stated that the largest percentage of the third quarter capital importation came from the portfolio investment, accounting for 55.9 percent or $2.99 billion.

This was followed by Other Investment with 40.4 percent or $2.17 billion, while Foreign Direct Investment (FDI) accounted for the remaining 3.73 percent or $200.08 million.

It was further revealed that the foreign portfolio investment of $2.99 billion had the highest input from its money market instruments, which brought in $2.55 billion of total investment. Equity followed with $358.2 million, while bonds made up $91.6 million.

A breakdown of the $2.17 billion realized from other investment saw loans accounting for $1.8 billion, while other claims amounted to the remaining $393.1 million. The country’s trade credits and currency deposits were not on record.

For the FDI of $200.08 million, a total of $196.4 million in equity with other capital amounting to $3.7 million gave the overall figure for the category.

Looking at the channels these investments came into Nigeria, as usual, the banking sector dominated the third quarter as it reached $1.7 billion of the $5.4 billion. It was followed by the financing and the telecommunications sector which accounted for 27.5 percent and 16.5 percent respectively.

The United Kingdom emerged as Nigeria’s top source of capital investment in Q3 2019 with $2.0 billion accounting for 37.5 percent, followed by the United States which brought in $1.2 billion and South Africa at $708.8 million of the total capital inflows.

In terms of destination, Lagos State was the top destination of capital investment in Nigeria in the period under review with $4.9 billion at 92.7 percent of the total capital inflow. Ogun State followed with a total of $7 million while Oyo State stood at $1.7 million.

By banks, Stanbic IBTC Bank Plc emerged at the top of capital investment in Nigeria with $1.6 billion (30.4 percent), while Ecobank followed with $754.4 million, and Standard Chartered followed with $502.5 million of the total capital inflow in Q3 2019.

https://businesspost.ng/economy/investment-inflows-into-nigeria-drop-7-8-in-q3-2019/

By Adedapo Adesanya

A member of the ninth Senate, Mr George Sekibo, has stated that Nigerians are not paying enough taxes compared with their counterparts in other countries, stressing that this has made government to always want to borrow more funds to provide for the needs of citizens.

The Peoples Democratic Party (PDP) lawmaker representing Rivers East Senatorial District at the National Assembly, while contributing to the Finance Bill passed by the Senate on Thursday at the plenary, said there was need to generate more money internally.

Senator Sekibo said, “It is good to raise the funds by ourselves than borrowing from outside. We have borrowed enough.

“Nigerians are used to free things. Otherwise, the amount of taxes we pay here compared to other countries, we are not paying enough.”

Another contributor, Senator Abdullahi Yahayi, noted that Nigeria needed a non-partisan approach to tackle its revenue problem which was denting its economy.

“The problem of our economy is the problem of revenue, the issue of economy is the issue that is beyond politics to me, whether it is APC today or PDP tomorrow, we have to come out and look at this matter in a non-partisan way. The major problem of the Nigerian economy is revenue,” he said yesterday.

The Senate President, Mr Ahmed Lawan, said that the purpose of the bill was not to put taxes on Nigerians but to create the necessary revenue needed for development.

“What government is trying to do with this Bill is to create the revenue necessary for us to create the environment where we are able to provide schools, Health care and have an economy that works for everyone.

“With time, we should look at things to do to in case some had unintended consequences come up,” he stated.

After the bill passed by the upper chamber of the parliament, the Senate President said: “What we have done is very significant because this is to ensure that we not only have sources of funding for the 2020 Budget but also for subsequent activities of government.”

Speaking further, Mr Lawan stated that, “The revenue generating agencies will have to sit up, the Senate will be mounting a lot of oversight on the revenue agencies.

“We must ensure that any agency that is charged with generating revenue must discharge its function judiciously.

“What we have down is to create more revenue to provide infrastructure for the Nigerian people.”

Business Post reports that last month, President Muhammadu Buhari, while presenting the 2020 budget to a joint session of the National Assembly, submitted the Finance Bill, which, among others, hopes to increase the Value Added Tax (VAT) to 7.5 percent from 5 percent from January 2020.

https://businesspost.ng/economy/nigerians-not-paying-enough-tax-senate/

Ghana Lures Treasury Bills Investors With 18% Rate
https://businesspost.ng/economy/ghana-lures-treasury-bills-investors-with-18-rate/

By Dipo Olowookere

Last week, in line with expectations, the Central Bank of Nigeria (CBN) crashed the stop rates of treasury bills to a single digit and this killed interest some investors had in the investment tool.

Before now, investors have had huge appetite for the government debt instrument because of its yield, but since the interest rate on T-bills has fallen below inflation rate in Nigeria (11.61 percent in October), that option is already being closed.

However, Nigeria’s West African neighbour, Ghana, is another destination those hungry for high treasury bills yields might consider exploring because the country is offering attractive returns.

Business Post reports at the last treasury bills sales conducted last week by the Bank of Ghana (BOG), the investment tool was offered as high as 17.91% percent.

Results of the exercise conducted last week showed that the 91-day bill cleared at 14.69 percent, the 182-day bill at 15.14 percent and the 364-day bill at 17.91 percent.

A week earlier, when the BOG approached the market with T-bills, it sold the 91-day instrument at 14.69 percent, the 182-day tenor at 15.13 percent and the 364-day maturity at 17.92 percent.

When the CBN conducted the sale of treasury bills at the primary market last week, it sold the 91-day bill at 7.80 percent, the 182-day bill at 9.00 percent and the 364-day bill at 10.00 percent.

Two weeks before the previous exercise, the 91-day bill cleared at 9.50 percent, the 182-day bill at 10.45 percent and the 364-day bill at 11.50 percent.

Business Post gathered that Ghana will auction another treasury bills this week and may offer the debt instrument at higher rates to attract Nigerian investors, who might be ready to move their funds to the country because of recent improvements in the economy.

The CBN is expected to sell treasury bills at the primary market next and may be reluctant to lower the rates further so as not to scare away investors from the country.

https://businesspost.ng/economy/ghana-lures-treasury-bills-investors-with-18-rate/

By Adedapo Adesanya

Inflation rate in Nigeria, Africa’s largest economy, rose to 11.61 percent year-on-year in October 2019, according to the country’s National Bureau of Statistics (NBS) on Monday morning.

The stats office, which released the figures today, said the Consumer Price Index (CPI), which measures headline inflation, increased by 0.36 percent in the 10th month of this year when compared with the 11.24 percent recorded in the previous month, September 2019.

The October inflation rate is the highest level in 17 months, precisely since May 2018 and this is largely attributed to the closure of land borders by the Nigerian authorities since August 2019, resulting in hike in prices of goods and services since August 2019.

There were expectations that the figure could rise to 11.32 percent, but this revelation by the NSE on Monday beat projections due to surge in prices of food items such as meat, oils and fats, bread and cereals, potatoes, yam and other tubers, fish and vegetables.

According to the stats office, the food price index increased to 14.09 percent in October from 13.51 percent in September.

In the report, it was also disclosed that increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline Index.

Looking at the month-on-month basis, the headline index increased by 1.07 percent in October 2019 or 0.03 percentage points higher than 1.04 percent recorded in September.

NBS also noted that the percentage change in the average composite CPI for the 12 months period ending October 2019 over the average of the CPI for the previous 12 months period was 11.30 percent, showing 0.03 percentage point increase from 11.27 percent recorded in September 2019.

The urban inflation rate stood at 12.20 percent (year-on-year) in October 2019 from 11.78 percent recorded in September 2019, while the rural inflation rate was recorded at 11.07 percent in October 2019 compared to 10.77 percent in September 2019.

On a month-on-month basis, the urban index rose by 1.15 percent in October 2019, up by 0.02 percentage points from 1.13 percent recorded in September 2019, while the rural index rose by 0.99 percent in October 2019, up by 0.03 percentage points from 0.96 percent recorded in the previous month.

In October 2019, all items inflation rate, on year on year basis was highest in Kebbi (15.20 percent), Bauchi (13.97 percent) and Ondo (13.74 percent), while Kwara (9.69 percent), Katsina (9.29 percent) and Bayelsa (9.07 percent) recorded the slowest rise in headline year on year inflation rate.

On month-on-month basis however, October 2019, All items inflation rate was highest in Benue (2.20 percent), Bauchi (1.87 percent) and Cross River (1.80 percent) while on the other hand, Anambra recorded the slowest rise at 0.28 percent, while Bayelsa and Ebonyi saw decline in the headline month on month index by -0.13 percent and -0.35 percent respectively.

https://businesspost.ng/economy/nigerias-inflation-hits-17-month-high-of-11-61/

SEC Wants 2.5% of Fees Collected by NSE, FMDQ, NASD, CSCS, Others
https://businesspost.ng/economy/sec-wants-2-5-of-fees-collected-by-nse-fmdq-nasd-cscs-others/

SEC Proposes Rule to Protect Investors, Stockbrokers from Risks, Losses
https://businesspost.ng/economy/sec-proposes-rule-to-protect-investors-stockbrokers-from-risks-losses/

One-Month T-Bills Yield Depreciates to 8.74%
https://businesspost.ng/economy/one-month-t-bills-yield-depreciates-to-8-74/

VFD Group Lists 84.738m Shares on NASD Exchange at N105.07 Each
https://businesspost.ng/economy/vfd-group-lists-84-738m-shares-on-nasd-exchange-at-n105-07-each/

Red Star Express Seeks Funds for New Warehouse, Trucks, Others
https://businesspost.ng/economy/red-star-express-seeks-funds-for-new-warehouses-trucks-others/

One-Month T-Bills Yield Depreciates to 8.74%
https://businesspost.ng/economy/one-month-t-bills-yield-depreciates-to-8-74/

NSE Index Posts Marginal 0.03% Growth Friday
https://businesspost.ng/economy/nse-index-posts-marginal-0-03-growth-friday/

Naira Recovers, Gains 27 Kobo Against Dollar at I&E Friday
https://businesspost.ng/economy/naira-recovers-gains-27-kobo-against-dollar-at-ie-friday/

Brent Crosses $63 Threshold on Fresh Trade Deal Optimism
https://businesspost.ng/economy/brent-crosses-63-threshold-on-fresh-trade-deal-optimism/

NASD Index Stays at 714.21 Points, Market Cap at N513bn
https://businesspost.ng/economy/nasd-index-stays-at-714-21-points-market-cap-at-n513bn/

Primero Lists N16.5bn Bond on FMDQ
https://businesspost.ng/economy/primero-lists-n16-5bn-bond-on-fmdq/

One-Month T-Bills Yield Depreciates to 8.74%
https://businesspost.ng/economy/one-month-t-bills-yield-depreciates-to-8-74/

By Modupe Gbadeyanka

The Debt Management Office (DMO) has announced that it would on Wednesday, November 20, 2019, auction bonds worth N150 billion to investors at the local bond market.

Business Post reports that the bond sale would be conducted by the debt office on behalf of the Federal Government of Nigeria (FGN) through the Dutch auction system.

The notes would be offered in three different maturities; 5-year, 10-year and 30-year tenors. A notice issued by the DMO said N50 billion of the 5-year paper would be sold at 12.75 percent, N50 billion worth of the 10-year bill would be sold at a coupon rate of 14.55 percent and N50 billion worth of the 30-year note at 14.80 percent.

According to the disclosure, the settlement date for the exercise is Friday, November 22, 2019, with each unit of the bonds to be sold at N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter, with the interest payable semi-annually and the bullet repayment done on the maturity date.

The debt office emphasised in the statement that for re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.

Interested investors have been advised to contact any of Access Bank Plc, First Bank of Nigeria Ltd, Standard Chartered Bank Nigeria Ltd, Citibank Nigeria Ltd, First City Monument Bank Plc, United Bank for Africa Plc, Coronation Merchant Bank Ltd, FSDH Merchant Bank Ltd, Zenith Bank Plc, Ecobank Nigeria Ltd, Guaranty Trust Bank Plc, FBNQuest Merchant Bank Ltd or Stanbic IBTC Bank Plc.

Business Post reports that FGN bonds qualify as securities in which trustees can invest under the Trustee Investment Act. They also serve as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds amongst other investors.

After being sold to investors, they would be listed on the Nigerian Stock Exchange and FMDQ OTC Securities Exchange for trading. In addition, all FGN bonds qualify as liquid assets for liquidity ratio calculation for banks.

https://businesspost.ng/economy/nigeria-offers-30-year-bond-at-14-80-5-year-at-12-75/

By Dipo Olowookere

The nation’s stock market was very busy on Thursday after the Central Bank of Nigeria (CBN) disappointed many investors by significantly lowering treasury bills rates at the primary market on Wednesday.

Some investors, who had abandoned the equity, were left with no choice than to return to the market to source for high value stocks, especially in the banking space.

This resulted in the banking index rising broadly by 7.04 percent yesterday, with the insurance sector following with 1.96 percent growth and the industrial goods index growing by 1.24 percent and consumer goods sector appreciating by 0.98 percent. Only the energy sector declined yesterday as its index closed 0.67 percent lower.

Business Post reports that at the close of transactions on Thursday, the market recorded a 1.91 percent growth, leaving the All-Share Index (ASI) of the Nigerian Stock Exchange (NSE) to close at 26,843.11 points and the market capitalisation at N13.067 trillion.

The market breadth closed positive with 34 price gainers and three price losers led by MTN Nigeria, which depreciated by 15 kobo to settle at N121.90 per share. Champion Breweries and Ikeja Hotel lost 9 kobo each to finish at 90 kobo and 87 kobo respectively.

On the gainers’ chart, Guinness Nigeria occupied the first position with N2.30 added to its share price to close at N26 per unit and was followed by GTBank, which gained N1.90 to end at N29.90 per unit.

Zenith Bank rose by N1.35 to finish at N19.15 per share, while Dangote Sugar and Access Bank appreciated by 95 kobo each to quote at N10.90 and N10.80 respectively.

In terms of the level of activity at the market on Thursday, it was mixed as the volume and number of deals executed increased by 2.34 percent and 27.73 percent respectively, while the value of transactions depreciated by 9.75 percent.

A total of 624.8 million shares worth N10.0 billion were transacted by investors in 6,426 deals compared with the 610.6 million units sold for N11.1 billion in 5,031 deals on Wednesday.

Zenith Bank remained the most traded stock at the market yesterday, though the volume reduced. A total of 167.9 million units were traded for N3.2 billion during the session.

Access Bank exchanged 99.3 million shares worth N1.1 billion, UBA sold 67.8 million equities for N500.3 million, Nigerian Breweries transacted 36.3 million shares valued at N1.7 billion, while Sterling Bank traded 31.4 million units for N68.5million.

https://businesspost.ng/economy/demand-for-nigerian-stocks-raises-index-by-1-91/

CBN Retains Rates at OMO Auction, as One-Year T-Bills Yield Falls to 10.91%
https://businesspost.ng/economy/cbn-retains-rates-at-omo-auction-as-one-year-t-bills-yield-falls-to-10-91/

Nigeria Offers 30-Year Bond at 14.80%, 5-Year at 12.75%
https://businesspost.ng/economy/nigeria-offers-30-year-bond-at-14-80-5-year-at-12-75/

Nigerian Stocks Gain 1.91% as Investors Abandon Fixed Income Market
https://businesspost.ng/economy/demand-for-nigerian-stocks-raises-index-by-1-91/

Demand for Nigerian Stocks Raises Index by 1.91%
https://businesspost.ng/economy/demand-for-nigerian-stocks-raises-index-by-1-91/

Moody's Reviews Dangote Cement Ratings
https://businesspost.ng/economy/moodys-reviews-dangote-cement-ratings/

Oil Prices Slip on US Crude Oil Inventory Rise
https://businesspost.ng/economy/oil-prices-slip-on-us-crude-oil-inventory-rise/

CBN Retains Rates at OMO Auction, as One-Year T-Bills Yield Falls to 10.91%
https://businesspost.ng/economy/cbn-retains-rates-at-omo-auction-as-one-year-t-bills-yield-falls-to-10-91/

Nigeria Offers 30-Year Bond at 14.80%, 5-Year at 12.75%
https://businesspost.ng/economy/nigeria-offers-30-year-bond-at-14-80-5-year-at-12-75/

Airtel Nigeria to Acquire $70m Spectrum for Better LTE Services
https://businesspost.ng/technology/airtel-nigeria-to-acquire-70m-spectrum-for-better-lte-services/

Ecobank Nigeria to Fund 250 Christian Entrepreneurs
https://businesspost.ng/banking/ecobank-nigeria-to-fund-250-christian-entrepreneurs/

Carry Trade as an Investment Strategy: Merits and Demerits
https://businesspost.ng/featureoped/carry-trade-as-an-investment-strategy-merits-and-demerits/

Heritage Bank Explores Nigeria’s £4bn Gold Market
https://businesspost.ng/banking/heritage-bank-explores-nigerias-4bn-gold-market/

Nigeria Awaits Another $400m Abacha Loot
https://businesspost.ng/general/nigeria-awaits-another-400m-abacha-loot/

T-Bills Yields Fall at Secondary Market on Buy Pressure
https://businesspost.ng/economy/t-bills-yields-fall-at-secondary-market-on-buy-pressure/

NSE Index Falls as Investors Offload Insurance, Energy Stocks
https://businesspost.ng/economy/nse-index-falls-as-investors-offload-insurance-energy-stocks/

Naira Suffers Marginal Decline at Investors Window Wednesday
https://businesspost.ng/economy/naira-suffers-marginal-decline-at-investors-window-wednesday/

Crude Oil Prices Rise as OPEC Plays Down Global Recession Fears
https://businesspost.ng/economy/crude-oil-prices-rise-as-opec-plays-down-global-recession-fears/

NASD Market Rebounds by 1.77% to Close Bullish Wednesday
https://businesspost.ng/economy/nasd-market-rebounds-by-1-77-to-close-bullish-wednesday/

Global Oil Demand to Fall from 2025--IEA
https://businesspost.ng/economy/global-oil-demand-to-fall-from-2025-iea/

T-Bills Yields Fall at Secondary Market on Buy Pressure
https://businesspost.ng/economy/t-bills-yields-fall-at-secondary-market-on-buy-pressure/

CBN Crashes Treasury Bills Rates to Single Digit
https://businesspost.ng/economy/cbn-crashes-treasury-bills-rates-to-single-digit/

CBN Crashes Treasury Bills Rates to Single Digit
https://businesspost.ng/economy/cbn-crashes-treasury-bills-rates-to-single-digit/

Border Closure to Push Inflation to 11.32%—Analysts
https://businesspost.ng/economy/border-closure-to-push-inflation-to-11-32-analysts/

PenCom Stops Death Benefits Accounts for Deceased Workers
https://businesspost.ng/jobs/pencom-stops-death-benefits-accounts-for-deceased-workers/

Dividends from Oil Firms to Lose Tax Exemption Status
https://businesspost.ng/economy/dividends-from-oil-firms-to-lose-tax-exemption-status/

Lagos Assures Business Owners Easy Access to Finance
https://businesspost.ng/economy/lagos-assures-business-owners-easy-access-to-funds/

Nigerian Stock Exchange Sustains Gains by 0.54%
https://businesspost.ng/economy/nigerian-stock-exchange-sustains-gains-by-0-54/

Naira Closes Mixed at Various Forex Market Segments Tuesday
https://businesspost.ng/economy/naira-closes-mixed-at-various-forex-market-segments-tuesday/

Oil Gives up Early Gains to Close Lower Tuesday
https://businesspost.ng/economy/oil-gives-up-early-gains-to-close-lower-tuesday/

NASD OTC Exchange Opens Week Flat as Investors Appetite Wanes
https://businesspost.ng/economy/nasd-otc-exchange-opens-week-flat-as-investors-appetite-wanes/

NECA Boss Wants VAT Dropped to 3%, Says Unemployment Rate May Hit 33.5%
https://businesspost.ng/economy/neca-boss-wants-vat-dropped-to-3-says-unemployment-rate-may-hit-33-5/

Treasury Bills Yields Close Mixed Across Tenors Tuesday
https://businesspost.ng/economy/treasury-bills-yields-close-mixed-across-tenors-tuesday/

By Dipo Olowookere

Analysts at Meristem Research have projected that inflation rate in Nigeria for the month of October 2019 will increase to 11.32 percent from 11.24 percent recorded in September, indicating a year-on-year 0.08 percent rise.

The firm said one of the major factors to cause this increase in inflation rate is the closure of land borders since August 2019, which has caused prices of food items to significantly moved up.

In its inflation report, Meristem Research noted that decline in prices of food items in August 2019 was caused by the harvest season, but things changed when federal government closed the country’s borders, which had impact on commodity prices, triggering a 0.22 percent uptick in inflation in September.

“Data from our most recent survey of commodity and food prices suggests a significant expansion in the prices of staples such as rice, poultry and oil in October.

“Just before announcement of the border closure in August, a 50kg bag of rice retailed for c.N12,000. As the full effect of the closure set in, prices surged by between 75.00 percent and 100.00 percent to N21,000 and NGN24,000 per bag,” the report said.

Continuing, it said, “Poultry products (chicken and turkey) and oils have also recorded average price expansions of 33.00 percent and 17.00 percent respectively over the same period.

“Combined, these items formed the strongest inflationary pressure points, as prices of other local staples remained relatively stable.”

Analysts at Meristem Research said the Purchasing Manager’s Index (PMI) of the Central Bank of Nigeria (CBN) also supports the view that inflationary pressures are building as the index for last month rose from 57.7 in September to 58.2.

“We envisage that the imminent upward review in energy tariffs and extension of the border closure period to January 31, 2020 should sustain pressure on the CPI in the near term,” it said.

On the global scene, the Food Price Index of the Food and Agriculture Organization of the United Nations ticked up by 5.97 percent year-on-year in October for the third consecutive month largely due to higher meat (+13.87 percent), dairy (+5.58 percent) and oils (+2.64%) prices.

“While this should ordinarily portend intensified inflationary pressures, owing to Nigeria’s large food import bill, the closure of the country’s land borders has emerged as the major upside risk to inflation,” the report said.

Concluding, Meristem Research said, “Following our evaluation of primary inflationary triggers in the economy, we forecast that headline inflation will tick up by 0.08 percent YoY, to 11.32 percent for October 2019.”

https://businesspost.ng/economy/border-closure-to-push-inflation-to-11-32-analysts/

Treasury Bills Yields Close Mixed Across Tenors Tuesday
https://businesspost.ng/economy/treasury-bills-yields-close-mixed-across-tenors-tuesday/

Lower T-Bills Rates to Spur Corporate Bond Issuance—DMO
https://businesspost.ng/economy/lower-t-bills-rates-to-spur-corporate-bond-issuance-dmo/

Real Reasons for Air Liquide N2.07bn Rights Issue
https://businesspost.ng/economy/real-reasons-for-air-liquide-n2-07bn-rights-issue/

US Bank Loans Near $10trn Monthly Milestone
https://businesspost.ng/banking/us-bank-loans-near-10trn-monthly-milestone/

Visa Buys Stake in Interswitch to Raise Value to $1bn
https://businesspost.ng/technology/visa-buys-stake-in-interswitch-to-raise-value-to-1bn/

Border Closure, Bank Loans ‘Kill’ 5 Importers
https://businesspost.ng/economy/border-closure-bank-loans-kill-5-importers/

Zedcap Emerges Best Brokerage Service Firm at 2019 FMDQ Gold Awards
https://businesspost.ng/economy/zedcap-emerges-best-brokerage-service-firm-at-2019-fmdq-gold-awards/

Adiukwu-Bakare Launches Aso-Ebi Gallery in Lagos
https://businesspost.ng/brands-products/adiukwu-bakare-launches-aso-ebi-gallery-in-lagos/

Investors to ‘Bombard’ Nigerian Stock Market This Week
https://businesspost.ng/economy/investors-to-bombard-nigerian-stock-market-this-week/

Crude Oil Under Pressure as Brent Nears $61
https://businesspost.ng/economy/crude-oil-under-pressure-as-brent-nears-61/

NSE Agrees to List UACN Property’s N15.96bn Rights Issue
https://businesspost.ng/economy/nse-agrees-to-list-uacn-propertys-n15-96bn-rights-issue/

By Dipo Olowookere

The renewed huge demand for treasury bills is expected to cause a marginal decline in stop rates of the government debt instrument at the primary market this week.

On Wednesday, the Central Bank of Nigeria (CBN), will on behalf of the Debt Management Office (DMO) and the federal government auction T-bills worth N125 billion to investors.

These bills would be offered in the usual three maturities; 91-day bill worth N4.38 billion, 182-day bill worth N12.92 billion and 364-day bill worth N107.94 billion.

With the barring of individuals, local firms and non-bank financial institutions from participating in open market operations (OMO) auctions of the apex bank, there would be rush for T-bills, which are still open to them.

As a result of this, the central bank is expected to lower the rates during the midweek exercise like in the past primary auctions.

Last week, the CBN sold OMO bills worth N232.45 billion to mop up matured bills worth N351.67 billion. Despite the net inflows, the financial system liquidity was strained, resulting in increase of all NIBOR tenor buckets: NIBOR for overnight funds, 1 month, 3 months and 6 months tenure buckets revved to 4.94 percent from 3.75 percent, 13.25 percent from 12.09 percent, 13.95 percent from 12.51 percent and 14.23 percent from 13.03 percent respectively.

Elsewhere, NITTY rose across maturities tracked amid renewed sell pressure, with yields on 1 month, 3 months, 6 months and 12 months maturity increasing to 12.17 percent from 11.37 percent, 13.12 percent from 11.68 percent, 13.22 percent from 12.13 percent and 14.87 percent from 14.32 percent respectively.

https://businesspost.ng/economy/rush-for-t-bills-to-weaken-rates-at-wednesdays-pma/

Rush for T-Bills to Weaken Rates at Wednesday's PMA
https://businesspost.ng/economy/rush-for-t-bills-to-weaken-rates-at-wednesdays-pma/

Rush for T-Bills to Weaken Rates at Wednesday's PMA
https://businesspost.ng/economy/rush-for-t-bills-to-weaken-rates-at-wednesdays-pma/

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By Modupe Gbadeyanka

Lagos State Governor, Mr Babajide Sanwo-Olu, on Friday said his administration plans to spend the sum of N1.168 trillion for the 2020 fiscal year, with about N1.071 trillion of the estimates expected to be raised from the state’s Internally Generated Revenue (IGR).

Presenting the budget to the Lagos State House of Assembly today, the Governor said 62 percent of the total amount, representing N723.75 billion, would be used for capital expenditure, while 38 percent, representing N444.81 billion, would go for recurrent expenditure.

He said the 2020 budget, Awakening to a Greater Lagos, was designed to accelerate the growth of state’s economy by proposing aggressive investments in critical areas of priorities, physical infrastructure, environment, human capital and security.

According to him, the budget deficit, put at N97.53billion, would be financed through internal and external loans. He further said about N167.81 billion of the recurrent expenditure will go for personnel costs and other staff-related expenses, representing 22.02 percent of the total revenue. This, the Governor noted, is within the acceptable wage policy, which benchmarks 25 percent staff overheads in the budget.

Mr Sanwo-Olu said the proposed budget would help the state achieve a sustainable social investment and scale up private sector-led economic growth through investment in infrastructure and security. He said it would also improve civic engagement in governance and foster partnership with the Federal Government and the civil society.

Explaining why his administration will be earmarking huge funds to the environment and public infrastructure, the Governor said Lagos had been facing combined threats from population explosion and climate change.

“Lagos faces an existential threat, arising from the interplay of demographic and climate change. Lagos will continue to be a magnet for multitudes within and outside Nigeria, in search of jobs and economic prosperity. These levels of migration put phenomenal strain on the physical and fiscal resources of the state.
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“This budget seeks to aggressively invest in and develop our education, health and other physical infrastructure sectors. As at September 2019, our capital expenditure on works and infrastructure was just N31 billion, which is less compared with N78 billion proposed in the current year. It is our intention to spend N115 billion on physical infrastructure in 2020.

“In response to the perennial challenges of flooding in the metropolis, we have to triple the capital budget provision to tackle these observed problems from N3 billion in 2019 to N9 billion in 2020. We are embarking on massive desilting of major drain systems across the state next year,” he informed the lawmakers, who listened to him with rapt attention.

Mr Sanwo-Olu told the parliament that his government plans to spend N48 billion on education and technology, representing 60 percent rise in capital allocation to the Ministry of Education.

On healthcare, he said the state plans to spend N33 billion on programmes, which include proposed revamping and re-equipping over 350 Primary Health Centres.

Mr Sanwo-Olu described the proposed budget as “unique”, noting that its details reflected the wishes of residents, following series of consultations and feedback from stakeholders across senatorial districts.

The Governor assured residents of transparency and accountability in the implementation of the budget, pointing out that there would be strict performance mechanism to drive compliance and measure the progress of the budget at the execution stage.

“The 2020 budget will be supported by a Performance Management System that will ensure that, by December 2020, we shall achieve an optimal budget implementation when compared with previous years. This is in line with our commitment to transparency and accountability in the management of public finances.
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“We have provided N11.8 billion as counterpart funds in preparation for various social impact schemes. In addition, we have made provisions for N7.1 billion this year, to provide for industrial hubs, parks, graduate internship programs and virtual markets for artisans. This is in support for Micro, Small and Medium Enterprises (MSMEs) which are the engines for both economic and employment growth,” he said.

Reviewing the performance of 2019 Appropriation Bill, which he signed into law in June shortly after he assumed office, Mr Sanwo-Olu said his government embarked on strict implementation of the budget and achieved 69 percent efficiency at the end of September.

He said his administration completed critical projects that directly impacted residents, including two Maternal and Child Care Centers (MCCs) in Eti-Osa and Alimosho areas, and 492-flat Lateef Jakande Housing Estate in Igando.

The Governor said several other capital projects captured in the 2019 budget, including 31 arterial roads in Ojokoro/Ijaiye area, a High Court and Magistrates Court complex in Eti-Osa Local Government Area, and a Police Command Complex in Ojo Local Government Area, will be completed.

Mr Sanwo-Olu observed that the approved re-ordering of the 2019 budget by the legislature gave the government an opportunity to raise N250 billion in addressing critical infrastructure needs, including rehabilitation of public schools, ongoing construction of Lagos–Badagry Expressway, Agege–Pen Cinema Overhead Bridge, Agric–Isawo Road, Bola Ahmed Tinubu–Igbogbo Road, and an ongoing road rehabilitation by Lagos Public Works.

He added that the loan will also enable his administration to start the desilting of drain systems, provision of security and emergency hardware, light rail infrastructure, and construction of a General Hospital in Ojo, which is to be fitted with a Spinal and Neurology Unit.
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Mr Sanwo-Olu reiterated that his administration’s development agenda, known as Project T.H.E.M.E.S, was designed to address major challenges facing the State and create a city that would work for the citizens. He said his administration was ready to transform Lagos by rethinking projects that will improve the wellbeing of the residents.

In his remarks, Speaker of the Assembly, Mr Mudashiru Obasa, praised Mr Sanwo-Olu for accepting the responsibility to tackle challenges faced the state.

He said the Governor’s activities since his assumption of office had re-assured Lagosians about his zeal to fix problems he inherited from the last administration.

“Mr Governor, your actions so far have shown the zeal, desire and passion in you to get things done, to fix what has been left undone and to move the state forward. Hence, we believe that the content of the budget will serve this purpose in making life worthy of living for our people in Lagos,” the Speaker said.

Mr Obasa promised the Assembly would ensure speedy passage of the budget and make it a “New Year” gift for people.

The Assembly chamber was filled to capacity, as a large crowd of Lagos residents, comprising leaders and members of the ruling All Progressives Congress (APC), State Executive Council members, traditional rulers, workers, traders, artisans, students and stakeholders in the private sector, witnessed the budget presentation.

https://businesspost.ng/general/lagos-budgets-n1-2trn-for-2020-targets-n1-1trn-igr/

Presidency Confirms Sacking of Osinbajo’s Aides to Cut Cost
https://businesspost.ng/general/presidency-confirms-sacking-of-osinbajos-aides-to-cut-cost/

By Modupe Gbadeyanka

The reported sacking of about 35 aides attached to Vice President, Mr Yemi Osinbajo, has been confirmed by the presidency on Friday.

A statement issued this afternoon by Mr Garba Shehu, Senior Special Assistant on Media and Publicity to President Muhammadu Buhari explained that the action was taken to reduce cost of governance, which has been an issue since the return of democracy to Nigeria in 1999.

Mr Shehu said the aides were asked to vacant their offices as part of an “on-going, an unprecedented overhaul of the nation’s seat of government.”

According to him, this exercise brought about “a number of political appointments” being “revoked or not renewed in the second term.”

Mr Shehu said, “The exercise, which has been ordered by the President, is to streamline decision-making, cut down multiple authorities and reduce the cost of administration.”

“It is also an appropriate response to the general perception that the presidency has an oversized and bloated workforce which acts as a drag on efficiency,” he added.

“As may have been noticed by discerning members of the public, a number of political appointees among the few that served in the office of the President were not returned for the second term.

“The office of the Vice President, His Excellency Yemi Osinbajo has, in compliance with the directive of the President, equally been shed of a number of such appointees,” he confirmed.

He said, “In carrying out these exercises, the overriding objective is to save taxpayer money and deliver needed service to the public. As far as the President is concerned, there is no scope for an excuse for administration after getting a huge mandate to run the country for four more years.”

“In the light of this, the Presidency wishes to strongly deny rumours of a rift between President Muhammadu Buhari and Vice President Yemi Osinbajo. The relationship between the two leaders remains excellent and trusting. Together, they will script a glorious future for the nation,” he said.

“The media reports of a soured relationship are originating from the minds and mouths of mischief makers, who are desperate for entertaining stories from the Aso Rock Villa with which to titillate the public. This ulterior motive is the basis of the wrong interpretation given to the recent exercise in the Presidency.

“There has been a streamlining of staff going on for a while. The President has always had fewer staff than the Vice President, and there were always plans to reduce the number of staff at the Villa.

“The streamlining was not personal or targeted to undermine the Vice President’s office, as the so-called insider sources quoted by the media appear to make it seem,” he said further.

“The President is in absolute control of his government. The media should stop attributing non-existent powers to some people. There cannot be anyone too powerful for President Buhari to control,” Mr Shehu warned.

https://businesspost.ng/general/presidency-confirms-sacking-of-osinbajos-aides-to-cut-cost/