₦airaland Forum

BREAKING: CBN Gives Banks Fresh Loan to Deposit Ratio
https://businesspost.ng/2019/10/01/cbn-raises-loan-to-deposit-ratio-to-65-gives-fresh-deadline/

By Dipo Olowookere

The Central Bank of Nigeria (CBN) has upwardly reviewed the loan to deposit ratio for Deposit Money Bank (DMBs) operating in the country “with immediate effect,” Business Post reports.

The apex bank had in a circular dated July 3, 2019, with reference letter BSD/D1R/GEN/MDD/01/045, asked financial institutions to increase their LDR to 60 percent on or before Monday, September 2019.

In a new circular, the CBN said it was given the banks till December 31, 2019, to improve their loan to deposit ratio to 65 percent, subject to quarterly review.

According to the central bank, since it first gave the directive on lending to the real sector of the economy, there has been an appreciable growth in the level of the industry gross credit, which increased by N829.40 billion or 5.33 percent from N15.568 trillion at end-May 2019. to N16.397 trillion as at September 26, 2019.

It explained that, “In order to sustain the momentum and in line with the provisions of our earlier letter, the minimum Loan to Deposit Ratio (LDR) target for all Deposit Money Banks (DMBs) is hereby reviewed upwards from 60 percent to 65 percent.”

“Consequently, all DMBs are required to attain a minimum LDR of 65 percent by December 31, 2019 and this ratio shall be subject to quarterly review to encourage SMEs, retail, mortgage and consumer lending, these sectors shall be assigned a weight of 150 percent computing the LDR for this purpose.”

In the circular, the central bank warned that, “Failure to meet the above minimum LDR by the specified date shall result in a levy of additional Cash Reserve Requirement equal to 50 percent of the lending shortfall implied by the target LDR.”

It further said, “DMBs are required to continue to strengthen their risk management practices particularly with regards to their lending operations.”

Concluding, the apex bank said it would “continue to review developments in the market with a view to facilitating greater investment in the real sector of the Nigerian economy whilst promoting a safe, sound and resilient financial system.”

https://businesspost.ng/2019/10/01/cbn-raises-loan-to-deposit-ratio-to-65-gives-fresh-deadline/

By Dipo Olowookere

Profit-taking in the shares of MTN Nigeria and others on the floor of the Nigerian Stock Exchange (NSE) plunged the market into a 0.16 percent loss on Monday, September 30, 2019. The actions of the investors ensured that the last trading day of the month closed bearish after going up in the two previous sessions.

Business Post reports that the market was impacted yesterday by the poor performance of MTN Nigeria, which at a point went down to N125 per unit at the session, but managed to close at N130.50 per share against N136 per share it traded last Friday, losing N5.50 on Monday.

However, the market breadth ended flat at the trading session with 18 price gainers and 18 price losers.

Other companies on the top five decliners’ chart were Unilever, which went down by N2.30 to settle at N26.70 per unit, Seplat, which fell by N1.60 to close at N555 per share, Ecobank, which declined by 85 kobo to finish at N8.05 per share, and NASCON, which depreciated by 30 kobo to close at N13.40 per share.

On the flip side, Nestle Nigeria was the day’s highest price gainer, going up by N49.90 to settle at N1394.90 per unit, while Total Nigeria followed with a price appreciation of N9.50 to close at N129.50 per share.

CAP gained N2.30 to trade at N25.55 per unit, GTBank rose by N1.60 to finish at N29.20 per share, while Dangote Cement appreciated by 80 to end at N151.50 per share.

At the session, investors traded 194.8 million shares worth N3.1 billion in 2,910 deals compared with the 187.3 million units valued at N2.1 billion transacted the previous trading day in 2,942 deals.

This indicated that the volume of the transactions increased by 4.01 percent, while the value rose by 43.97 percent, with the number of deals executed going down by 1.09 percent.

The most active stock at the market yesterday was GTBank, with a total turnover of 58.5 million units sold for N1.6 billion, while Access Bank trailed with an exchange of 50.4 million shares worth N386 million.

FBN Holdings traded 21.2 million equities valued at N115.2 million, FCMB exchanged 16.8 million shares worth N27.6 million, while Transcorp transacted 7.2 million stocks valued at N7.3 million.

Business Post reports that the five key sectors on the NSE closed in the green territory on Monday, with the insurance sector recording the highest gain of 1.85 percent.

The banking index followed with 1.56 percent growth, the consumer goods industry appreciated by 1.26 percent, the industrial goods index rose by 0.91 percent, while the energy sector improved by 0.35 percent.

But the main market indicators, the All-Share Index (ASI) and market capitalization depreciated by 44.48 points and N21.7 billion apiece to settle at 27,630.56 points and N13.450 trillion respectively.

https://businesspost.ng/2019/10/01/market-loses-n22bn-as-investors-selloff-shares-of-mtn-17-others/

NSE Boosts Assets by 9% Amid 13% Drop in Transaction Fees
https://businesspost.ng/2019/10/01/nse-boosts-assets-by-9-amid-13-drop-in-transaction-fees/

Nigeria's Unlisted Securities Market Sheds 0.78%, NASD Shares up 8.31%
https://businesspost.ng/2019/10/01/nigerias-unlisted-securities-market-sheds-0-78-nasd-shares-up-8-31/

NSE Standstill for Pa Akintola Williams, Beats Closing Gong
https://businesspost.ng/2019/10/01/nse-standstill-for-pa-akintola-williams-beats-closing-gong/

NIPCO Mulls LPG Production For Good Returns to Shareholders
https://businesspost.ng/2019/10/01/nipco-mulls-lpg-production-for-good-returns-to-shareholders/

Naira Depreciates to N307/$ at Interbank Segment Monday
https://businesspost.ng/2019/10/01/naira-depreciates-to-n307-at-interbank-segment-monday/

Brent Trades $59/Barrel Monday as Saudi Completes Recovery
https://businesspost.ng/2019/10/01/brent-trades-59-barrel-monday-as-saudi-complete-recovery/

17 Insurance Firms to Resubmit Recapitalisation Plans
https://businesspost.ng/2019/09/30/17-insurance-firms-to-resubmit-recapitalisation-plans/

Market Loses N22bn as Investors Selloff Shares of MTN, 17 Others
https://businesspost.ng/2019/10/01/market-loses-n22bn-as-investors-selloff-shares-of-mtn-17-others/

One-Year T-Bills Yields Fall to 14.96% from 15.10%
https://businesspost.ng/2019/10/01/one-year-t-bills-yields-fall-to-14-96-from-15-10/

One-Year T-Bills Yields Fall to 14.96% from 15.10%
https://businesspost.ng/2019/10/01/one-year-t-bills-yields-fall-to-14-96-from-15-10/

UACN Property Applies for N15.962bn Rights Issue
https://businesspost.ng/2019/09/30/uacn-property-applies-for-n15-962bn-rights-issue

Monitor These Three Financial Stocks This Week
https://businesspost.ng/2019/09/30/monitor-these-three-financial-stocks-this-week/

Naira to Appreciate This Week Amidst Drop in Reserves, FPIs Inflows
https://businesspost.ng/2019/09/30/naira-to-appreciate-this-week-amidst-drop-in-reserves-fpis-inflows/

Why is Africa Poor?
https://businesspost.ng/2019/09/30/why-is-africa-poor/

Investors Trade 752m Financial Stocks in Five Days
https://businesspost.ng/2019/09/29/investors-trade-752m-financial-stocks-in-five-days/

GCR Sees Transcorp Hotels’ Ability to Sustain Market Position
https://businesspost.ng/2019/09/28/gcr-sees-transcorp-hotels-ability-to-sustain-market-position/

T-Bills Yields Fall to 13.23% After 0.06% Loss Friday
https://businesspost.ng/2019/09/28/t-bills-yields-fall-to-13-23-after-0-06-loss-friday/

T-Bills Yields Fall to 13.23% After 0.06% Loss Friday
https://businesspost.ng/2019/09/28/t-bills-yields-fall-to-13-23-after-0-06-loss-friday/

By Dipo Olowookere

The removal of Mr Isiah Idoko-Akoh as Chairman of Investment and Securities Tribunal (IST) by President Muhammadu Buhari has been applauded by members of the Amalgamated Union of Public Corporations Civil Service Technical and Recreational Services Employees (AUPCTRE), an affiliate of the Nigerian Labour Congress (NLC).

The sacking of Mr Idoko-Akoh was announced by Permanent Secretary in the Federal Ministry of Finance, Mr Mahmoud Isa-Dutse, who also said the President has approved the appointment of a full-time member of the tribunal, Mr J. I. Udunni, as the new chairman.

The union, at a joint press conference on Friday in Abuja, said President Buhari did well by removing Mr Idoko-Akoh from the position, saying it was long overdue.

According to Chairman of the Abuja chapter of AUPCTRE, Comrade Aliyu Maradun, the former IST Chairman vehemently opposed the progress and actualization of the mandate given by President Mohammed Buhari, on tribunal and its workers.

He said the union engaged the former Chairman at different fora with a view to avoid the tribunal from losing its competence and capability in adjudicating over millions of investors’ cases, as his integrity was in doubt, but nothing came of out the talks.

According to him, “The struggle led to three picketing at the IST premises in order to draw government attention and relevant stake-holders.”

He further said, “It is very unfortunate that the Chairman unilaterally handled IST as if it is his own personal private property without recourse to Civil/Public Service Rules and Constitution of Federal Republic of Nigeria.

“The struggle for emancipation of worker and revival of IST became pertinent, when the union discovered that the tribunal is on the verge of being collapsed by the former Chairman due to his high-handedness, maladministration and high level of corruption in which the union petitioned ICPC, EFCC and Presidential Initiative on Continuous Audit (PICA) for investigation and prosecution.”

Mr Maradun also thanked the Minister of Labour, Employment and Productivity, Mr Chris Ngige; Minister of Finance, Mrs Zainab Ahmed; Attorney General and Minister of Justice, Mr Abubakar Malami, and the securities agencies for acting accordingly to save the IST from collapse.

He assured that, “AUPCTRE would always remain committed to the anti-corruption war of President Buhari and the struggle for the betterment of members who are workers in various institutions of government.”

https://businesspost.ng/2019/09/27/workers-jubilate-as-buhari-sacks-investment-tribunal-chairman/

List of Shareholders’ Groups in Nigeria Approved by SEC
https://businesspost.ng/2019/09/28/list-of-shareholders-groups-in-nigeria-approved-by-sec/

Friesland, Afriland Buoy NASD OTC Market by 0.14% on Friday
https://businesspost.ng/2019/09/28/friesland-afriland-buoy-nasd-otc-market-by-0-14-on-friday/

Brent Slips to $61 on Talks of Saudi-Yemen Ceasefire
https://businesspost.ng/2019/09/28/brent-slips-to-61-on-talks-of-saudi-yemen-ceasefire/

Naira Appreciates at I&E as Dollar Demand Eases
https://businesspost.ng/2019/09/28/naira-appreciates-at-ie-as-dollar-demand-eases/

Cornerstone Insurance Sells Head Office Building
https://businesspost.ng/2019/09/27/cornerstone-insurance-sells-head-office-building/

Continental Reinsurance Holds Fresh Court-Ordered Meeting October 29
https://businesspost.ng/2019/09/27/continental-reinsurance-holds-fresh-court-ordered-meeting-october-29/

Plot to Attack, Disrupt Fidelity Bank Services Uncovered
https://businesspost.ng/2019/09/27/plot-to-attack-disrupt-fidelity-bank-services-uncovered/

GTBank Board Meets for Q3'19 Results, Declares Closed Period
https://businesspost.ng/2019/09/27/gtbank-board-meets-for-q319-results-declares-closed-period/

Workers Jubilate as Buhari Sacks Investment Tribunal Chairman
https://businesspost.ng/2019/09/27/workers-jubilate-as-buhari-sacks-investment-tribunal-chairman/

Na wetin concern you, is it your AG Leventis? Please, let dem 'Leventis' dia stock in peace jare. Shift for me abeg

OakPearl:
The people hoarding A.G. Leventis are so upset with their losses they forget there has to be a trade for price appreciation to happen.

Market Conditions to Remain Tough—PZ Cussons
https://businesspost.ng/2019/09/27/market-conditions-to-remain-tough-pz-cussons/

SEC Embracing Technology to Attract More Investors—Uduk
https://businesspost.ng/2019/09/27/sec-embracing-technology-to-attract-more-investors-uduk/

Local Currency Sheds 29 Kobo at Investors' Window
https://businesspost.ng/2019/09/27/local-currency-sheds-29-kobo-at-investors-window/

NNPC Partners Agip, Oando on Four Oil Mining Leases
https://businesspost.ng/2019/09/27/nnpc-partners-agip-oando-on-four-oil-mining-leases/

Equities Rebound, Gain N145bn Thursday
https://businesspost.ng/2019/09/27/equities-rebound-gain-n145bn-thursday/

Nigeria Sells 30-Year Bonds to Investors at 14.64%
https://businesspost.ng/2019/09/26/nigeria-sells-30-year-bonds-to-investors-at-14-64/

SAHCO Posts First Price Change Five Months After NSE Listing
https://businesspost.ng/2019/09/26/sahco-posts-first-price-change-five-months-after-nse-listing/

NSE Starts 'X-Kathon' Contest to Boost Capital Market Growth
https://businesspost.ng/2019/09/26/nse-starts-x-kathon-contest-to-boost-capital-market-growth/

I Don't Foresee Cut in Interest Rates Soon—Emefiele
https://businesspost.ng/2019/09/26/i-dont-foresee-cut-in-interest-rates-soon-emefiele/

Bulgarian Economist Kristalina Georgieva Becomes New IMF Chief
https://businesspost.ng/2019/09/26/bulgarian-economist-kristalina-georgieva-becomes-new-imf-chief/

Five Banks Spend N4.2bn on Directors in Six Months
https://businesspost.ng/2019/09/26/five-banks-spend-n4-2bn-on-directors-in-six-months/

Dangote Cement, Guinness, MTN Crash Stock Market by 0.25%
https://businesspost.ng/2019/09/26/dangote-cement-guinness-mtn-crash-stock-market-by-0-25/

Oil Extends Losses Wednesday on US Crude Inventory Surge
https://businesspost.ng/2019/09/26/oil-extends-losses-wednesday-on-us-crude-inventory-surge/

Market for Unlisted Nigerian Stocks Closes Flat Wednesday
https://businesspost.ng/2019/09/26/market-for-unlisted-nigerian-stocks-closes-flat-wednesday/

Yields Lose 0.09% Wednesday as Market Expects OMO Sale
https://businesspost.ng/2019/09/26/yields-lose-0-09-wednesday-as-market-expects-omo-sale/

NSE Lifts Suspension on Guinea Insurance, Niger Insurance
https://businesspost.ng/2019/09/26/nse-lifts-suspension-on-guinea-insurance-niger-insurance/

By Adedapo Adesanya

Zenith Bank, Access Bank, Guaranty Trust Bank (GTBank), United Bank for Africa (UBA), and First Bank, all termed as ZAGUF Banks by Business Post, and are operating in the tier-one category in the banking sector in Nigeria, spent the total sum of N4.181 billion on their director between the months of January and June, 2019.

This was discovered by an investigation carried out by Business Post recently on the five ZAGUF banks. This figure was obtained from the half year audited financial statements of these lenders in the period under review.

In the first six months of this year, a total of N1.6 billion was spent on the directors of Zenith Bank, who according to the company, are 12 in numbers. This amount was 138.1 percent more than the N672 million paid as emoluments in the same period of 2018.

A further scrutiny showed that the sum of N1.325 billion was used as executive compensation in H1 2019, higher than the N539 million in H1 2018, while N275 million was used as fees and sitting allowances for the Zenith Bank directors, higher than the N133 million in the corresponding period of last year.

As for Guaranty Trust Bank, it spent a total of N424.7 million on its directors between the first six months of this year, 16.0 percent higher than HY 2018 figures of N366.2 million.

According to the financial statements of First Bank Plc, it paid a total of N1.377 billion to its directors in the same period under review, an increase by 21.5 percent from N1.133 billion it used on these few executives of the financial group in the first half year of 2018. The bank was the second after Zenith Bank to pay the highest amount to their directors.

As for Access Bank, which merged with the defunct Diamond Bank Plc during the half year, it categorized its as board of directors expenses, which stood at N762.2 million in H1 2019 against N641.5 million in H1 2018, indicating an increase by 18.8 percent or N120.7 million.

On the part of United Bank for Africa (UBA) Plc, its financial statements indicated that the sum of N18 million spent as directors’ fees, 38.5 percent higher than the N13 million used for the same purpose in the first six months of last year.

A further analysis of the company’s books showed that the sum of N2.757 billion was used for business travels, lower than the N4.110 billion spent in the same period of 2018.

In total, these five tier-one ZAGUF banks in Nigeria spent the sum of N4.2 billion on their directors in the first half of 2019, higher than the N2.8 billion it expended in the same period of 2018, representing an increase by 50 percent.

https://businesspost.ng/2019/09/26/five-banks-spend-n4-2bn-on-directors-in-six-months/

Yields Lose 0.09% Wednesday as Market Expects OMO Sale Today
https://businesspost.ng/2019/09/26/yields-lose-0-09-wednesday-as-market-expects-omo-sale/

Unity Bank Holds 2019 AGM October 16
https://businesspost.ng/2019/09/25/unity-bank-holds-2019-agm-october-16/

Selloffs Continue on NSE as Stocks Lose N145bn
https://businesspost.ng/2019/09/25/selloffs-continue-on-nse-as-stocks-lose-n145bn/

Naira Loses Against Pound After Boris Johnson Court Loss
https://businesspost.ng/2019/09/25/naira-loses-against-pound-after-boris-johnson-court-loss/

Oil Prices Fall as Trump Stirs US-China Trade War
https://businesspost.ng/2019/09/25/oil-prices-fall-as-trump-stirs-us-china-trade-war/

Market Value of NASD Exchange Depreciates by N30m
https://businesspost.ng/2019/09/25/market-value-of-nasd-exchange-depreciates-by-n30m/

Real Reasons Vessel Operators Don't Use Eastern Ports—NPA Boss
https://businesspost.ng/2019/09/25/real-reasons-vessel-operators-dont-use-eastern-ports-npa-boss/

Aiteo to Increase Oil Production to 100,000 Barrel/Day
https://businesspost.ng/2019/09/25/aiteo-to-increase-oil-production-to-100000-barrel-day/

Osinbajo Advocates Power Sector Autonomy
https://businesspost.ng/2019/09/25/osinbajo-advocates-power-sector-autonomy/

Most Valuable Stock: MTN Leads Dangote Cement by N205bn
https://businesspost.ng/2019/09/24/most-valuable-stock-mtn-leads-dangote-cement-by-n205bn/

Is Nigeria’s Fiscal Adjustment a Necessary Evil?
https://businesspost.ng/2019/09/24/is-nigerias-fiscal-adjustment-a-necessary-evil/

By Dipo Olowookere

For several years, Dangote Cement Plc enjoyed the status of being the most capitalized stock on the Nigerian Stock Exchange (NSE), but when shares of MTN Nigeria Communications Plc were introduced into the nation’s bourse in May 2019, some observers knew it won’t take long for Dangote Cement to lose the position to the telco.

MTN Nigeria is known to dominate its environment and it was not a surprise when three months after its listing on the NSE, the company displaced the once ‘revered’ Dangote Cement from its exalted position.

Though Dangote Cement initially reclaimed its position hours after it lost it to MTN Nigeria, this was short-lived as the leading telecommunications firm bounced back and has since then tightened its grip on the post like an akagon.

A check by Business Post on the market value of the two movers and shakers of the nation’s stock market on Tuesday showed that Dangote Cement is on a distant second position.

From data sourced from the NSE, MTN Nigeria is leading Dangote Cement in terms of market capitalization by N205.0 billion as at the close of business today.

Business Post reports that while the market value of MTN Nigeria is N2.829 trillion, Dangote Cement is N2.624 trillion. The former has total shares outstanding of 20.355 billion, while the latter has total shares outstanding of 17.041 billion.

As at the close of transactions on Tuesday, shares of MTN Nigeria finished at N139 per unit after depreciating by N1 or 0.71 percent, while shares of Dangote Cement settled at N154 each after going down by 60 kobo or 0.39 percent.

Business Post reports further that at the market today, investors traded a total of 573,236 shares of MTN Nigeria worth N79.577 million, while 103,567 units of Dangote Cement stocks worth N15.937 million were transacted on the floor of the NSE.

https://businesspost.ng/2019/09/24/most-valuable-stock-mtn-leads-dangote-cement-by-n205bn/

The Central Bank of Nigeria (CBN) has disclosed that in the month of September 2019, the manufacturing sector in the country recorded an expansion in its 30th consecutive, though the growth in the month was slower than the one achieved last month.

In its latest Purchasing Managers’ Index (PMI) reading, the central bank said the sector printed 57.7 index points and that 13 of the 14 surveyed subsectors reported growth in the review month.

These subsectors are cement; petroleum & coal products; food, beverage & tobacco products; transportation equipment; printing & related support activities; chemical & pharmaceutical products; furniture & related products; fabricated metal products; nonmetallic mineral products; electrical equipment; textile, apparel, leather & footwear; plastics & rubber products; and primary metal.

However, the paper products subsector recorded decline in the review period.

For the non-manufacturing sector, the composite PMI stood at 58.0 points in September 2019, indicating expansion for the 29th consecutive month and the index also grew at a slower rate when compared with its level in August 2019.

The CBN said 14 of the 17 surveyed subsectors recorded growth in utilities; information & communication; wholesale/retail trade; arts, entertainment & recreation; transportation & warehousing; agriculture; repair, maintenance/washing of motor vehicles; construction; finance & insurance; accommodation & food services; educational services; health care & social assistance; real estate rental & leasing; and electricity, gas, steam & air conditioning supply.

However, the management of companies subsector remained unchanged, while the water supply, sewage & waste management; and professional, scientific, & technical services sub-sectors contacted in the review period.

The apex bank said it arrived at the figures through a PMI survey conducted by its Statistics Department during the period September 9-13, 2019. The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states in Nigeria and the Federal Capital Territory (FCT).

https://businesspost.ng/2019/09/24/nigerias-manufacturing-pmi-expands-30th-month-in-sept/

Presco, 23 Others Weaken NSE Index by 0.18%
https://businesspost.ng/2019/09/24/presco-23-others-weaken-nse-index-by-0-18/

Ecobank Picks Ex-Microsoft Staff as Senior Fintech Advisor
https://businesspost.ng/2019/09/24/ecobank-picks-ex-microsoft-staff-as-senior-fintech-advisor/amp/

Sell Pressure Shoots Treasury Bills Yields to 13.35%
https://businesspost.ng/2019/09/24/sell-pressure-shoots-treasury-bills-yields-to-13-35/

Sell Pressure Shoots Treasury Bills Yields to 13.35%
https://businesspost.ng/2019/09/24/sell-pressure-shoots-treasury-bills-yields-to-13-35/

List of Dividend Payments on NASD OTC Market in 2019
https://businesspost.ng/2019/09/23/list-of-dividend-payments-on-nasd-otc-market-in-2019/

Unity Bank Suffers Low Trades as Fire Guts Head Office
https://businesspost.ng/2019/09/23/hilton-to-build-100th-african-hotel-in-sandton/

Investors Transact N18.8bn Shares in 19,482 Deals
https://businesspost.ng/2019/09/23/investors-transact-n18-8bn-shares-in-19482-deals/

CBN Suggests Sale of Redundant Public Assets to Generate Revenue
https://businesspost.ng/2019/09/23/cbn-suggests-sale-of-redundant-public-assets-to-generate-revenue/

By Adedapo Adesanya

In order to create employment and generate more revenue for national economic growth, the Central Bank of Nigeria (CBN), through its Monetary Policy Committee (MPC), has called on federal government to urgently to sell off all redundant public assets.

This suggestion was given while Governor of the CBN, Mr Godwin Emefiele, was reading a communique issued by the MPC after its meeting last Friday in Abuja.

The committee, in what it termed the Big Bang Approach, said federal government should do this through “an efficient, effective, and transparent privatization process,” which will ensure fiscal liquidity.

It noted that if this step was taken by government, it would help the country to generate significant revenue to fund the proposed 2020 budget and resuscitate the non-performing asset.

Doing this, the committee further said, will help reduce Nigeria’s unemployment rate which stands at 23.1 percent as at Q3, 2018 and also contribute effectively in growing the national economy.

The committee also stressed that the instability of global oil prices, which affects the nation’s external reserves, is a wake-up call on the need for fiscal buffers which is one of the way’s the nation could boost its non-oil revenue.

It further urged the Ninth National Assembly not to increase the oil price budget benchmark in the medium term from $55 per barrel in order to avoid budgetary overruns at the implementation stage of the budget as oil prices are expected to remain tight amid global tension.

Business Post reported last week that the Monetary Policy Rate (MPR) was retained at 13.5 percent. Other policy indicators left unchanged were the Cash Reserve Ratio (CRR) at 22.5 percent, the Liquidity Ratio at 30 percent and the Asymmetric Corridor at +200 and -500 basis points around the MPR.

https://businesspost.ng/2019/09/23/cbn-suggests-sale-of-redundant-public-assets-to-generate-revenue/

Infinity Trust Mortgage Bank Eyes N4bn Earnings, 35 Kobo EPS, 40% ROE
https://businesspost.ng/2019/09/23/infinity-trust-mortgage-bank-eyes-n4bn-earnings-35-kobo-eps-40-roe/

Honeywell Targets Expansion to Sustain Revenue Growth
https://businesspost.ng/2019/09/23/honeywell-targets-expansion-to-sustain-revenue-growth/

Why Nigeria Can't Generate Much Revenue From Tax—Oyedele
https://businesspost.ng/2019/09/23/why-nigeria-cant-generate-much-revenue-from-tax-oyedele/

CBN’s Forex Supply to BDCs Damaging Economy—Analysts
https://businesspost.ng/2019/09/23/cbns-forex-supply-to-bdcs-damaging-economy-analysts/

Nigeria to Reduce Cost of Oil Production Per Barrel
https://businesspost.ng/2019/09/23/nigeria-to-reduce-cost-of-oil-production-per-barrel/

By Adedapo Adesanya

Nigeria is ranked among the top ten countries of the highest payers of company income tax, and this is not helping businesses reach their maximum growth capacity.

This was expressed by Mr Taiwo Oyedele, the Head of Tax and Corporate Advisory Services at PwC Nigeria at the Finance Correspondents Association of Nigeria (FICAN) annual workshop over the weekend.

Mr Oyedele, while speaking at the event themed Unlocking Opportunities in Nigeria’s Non-Oil Sector stated that, “We pay Company Income Tax (CIT) of 30 percent and education tax of 2 percent. Whatever is left, we pay withholding tax of 10 percent. If you add all these together, it is more than 40 percent already.”

“If you now make a mistake of having a group and you say it’s a holding company, another 30 percent. Who does that?” he queried.

Speaking further, he said, “When you start a business today, there is something called commencement rule. It is supposed to punish you during commencement so that you pay tax twice. It does not make sense.”

To address this challenge, the Tax Leader called on operators in the private sector to focus on demanding for the removal of some of these disincentives that affect business operations.

He then added that the government must remove tax disincentives, emphasising that, “One thing I am asking the business community is to stop asking the government for incentives because they will think they are doing you a favour.”

“Ask them to remove the disincentives that are not allowing us to do business,” he said.

Mr Oyedele also called on the authorities to change their thinking about taxation as this current approach has only made compliance difficult.

He said: “Our thinking around taxation is complete upside down as a country. Nigeria does not seem to understand that you need to be prosperous so that you can pay tax. So, the tax does not just fall from heaven.”

“As a government, I should help you make money so that you can pay me tax. It’s just common sense. Nigeria has a tax system that does not allow businesses to thrive, whether you are small or big,” he added.

He noted that “the reason Nigeria cannot make money from tax, and is not a curse, is that it continues to beat up the people at the bottom of the ladder. But they cannot give you what they don’t have.

“In societies where they think things logically, they focus on the top one percent who are the rich and big companies and they will get the desired tax result,” he said.

https://businesspost.ng/2019/09/23/why-nigeria-cant-generate-much-revenue-from-tax-oyedele/

By Dipo Olowookere

Chairman of Dangote Cement Plc, Mr Aliko Dangote, has disclosed that the cement giant plans to increase its production capacity in Nigeria by six million tons by next year.

Mr Dangote, who is Africa’s richest man, said at a function in Lagos on Thursday that the firm was working to raise the installed capacity for cement production from the present 29 million tons to 35 million by 2020.

“In Nigeria alone, we have 29 million tons installed capacity for cement production and we will be at 35 million by 2020,” Mr Dangote said while speaking at the commissioning of the N85 million Chemical and Non-Metallic Employers Federation (CANMPEF) House.

He described Dangote Cement, which controls a larger market share in the country, as one of the most employer of labour. According to him, “Dangote Cement Plc alone provides employment to over 25,000 people across the nation.”

He said this was made possible as a result of its determination of being importer of cement into the country to an exporter of the product to other nations.

“We have contributed hugely to the nation’s successful transition from being at one time the world’s largest importer of cement to the position we are today where we not only are self-sufficient in cement, but indeed are net exporters of cement,” he said.

Mr Dangote commended CANMPEF for contributing to the development of Nigeria, saying at the event that, “I am aware that CANMPEF is Nigeria’s largest employer’s federation, with your members spread in various locations across Nigeria and fully engaged in various value-added activities that are creating wealth and employment for millions of Nigerians.”

He further applauded the organization for the successful completion of the house, noting that, “I am told that CANMPEF House was built at a cost of about N85 million and that it is a multipurpose facility that will cater for a wide range of developmental work.”

https://businesspost.ng/2019/09/21/dangote-cement-targets-35-million-tons-capacity-by-2020/

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