₦airaland Forum

By Dipo Olowookere

Indian-born British businessman, Mr Sanjeev Gupta, has completed the acquisition of United Kingdom subsidiary of the defunct Diamond Bank Plc, Business Post has confirmed.

The Diamond Bank UK was sold by the parent company in Nigeria before its merger with Access Bank Plc in March 2019.

As the new owner of Diamond Bank, Business Post reliably gathered that Mr Gupta will change the name of his newly acquired bank to Commonwealth Trade Bank (CTB).

It was learned that the businessman acquired the financial institution as part of a strategy to help UK businesses trade internationally, especially with emerging and Commonwealth markets.

The Commonwealth Trade Bank is expected to add significantly to the financial services offering within Mr Gupta’s global GFG Alliance, comprising metals, industrials, energy, finance and property businesses.

The CTB will facilitate greater international trade with countries such as Australia and India, giving customers the attention and support they need to unlock value within their businesses, we gathered.

Also, the new lender will offer a core range of trade solutions including receivables, inventory and supply chain finance, letters of credit discounting, and trade and documentary services associated with trade finance.

The Change in Control for the bank follows the granting of approval for the acquisition by the Prudential Regulation Authority.

As a regulated entity, the Commonwealth Trade Bank will be owned, governed and operated independently of Mr Gupta’s other businesses.

The banks specific expertise in emerging and Commonwealth markets will complement the role of Wyelands Bank, Mr Gupta’s other bank in the UK focused on working capital solutions for both domestic and global industrial companies, which was purchased by Mr Gupta in 2016. Both banks will operate independently.

Mr Gupta, founder and executive chairman of GFG Alliance, said The CTB will be a highly valuable partner for Britain’s dynamic and ambitious companies that are looking to export their goods and services to some of the highest growth markets around the world like Australia and India.

“This is an exciting time for British businesses, with many new opportunities opening up in emerging and Commonwealth markets. By helping businesses to capitalise on these opportunities and expand their global footprint, I believe the Commonwealth Trade Bank will play a significant role in expanding trade worldwide.

“Finance is the life blood of our economy and there is a clear gap in the market to provide accessible finance and bespoke solutions to facilitate greater trade flows.

“Utilising its global networks, breadth of experience and specialist expertise in emerging and Commonwealth economies, and adopting latest technological solutions, this bank will aim to become a leader among financial institutions globally that provide international trade finance. GFG companies have a long history of trade within the Commonwealth and we hope to use that experience to design a British bank focused on helping UK companies to access exciting new opportunities in a post-Brexit world.

“We are very excited to have been given the privilege of acquiring two of Britain’s banks in this coveted market. We will build on the success of Wyelands Bank and will make CTB a great champion also,” Mr Gupta said.

The bank’s chief executive, Mr Peter Horton, said, “Were looking forward to a bright future as a new, independent, entity.

“We will focus on making it easier for businesses, to trade internationally. We will take the time to understand their needs so we can tailor workable solutions that will enable them to make the most of existing value within their business.

“We will also invest significantly in our people and in latest technology so we can do more to empower businesses to trade internationally.”

https://businesspost.ng/2019/04/27/gupta-takes-over-diamond-bank-uk-changes-name-to-ctb/

Gupta Takes Over Diamond Bank UK, Changes Name to CTB
https://businesspost.ng/2019/04/27/gupta-takes-over-diamond-bank-uk-changes-name-to-ctb/

Q1 2019: Dangote Cement Suffers Fall in Revenue, Profit, EPS
https://businesspost.ng/2019/04/26/q1-2019-dangote-cement-suffers-fall-in-revenue-profit/

Oando Plans Raising Production to Sustain Profitability for Dividend Payment
https://businesspost.ng/2019/04/26/oando-plans-raising-production-to-sustain-profitability-for-dividend-payment/

Nigerian Breweries Remains Confident to Deliver Good Return on Investment
https://businesspost.ng/2019/04/26/nigerian-breweries-remains-confident-to-deliver-good-return-on-investment/

FCMB Posts Gross earnings of N44bn in 3 Months
https://businesspost.ng/2019/04/26/fcmb-posts-gross-earnings-of-n44bn-in-3-months/

Unity Bank Raises PAT to N465bn in Q1 2019
https://businesspost.ng/2019/04/26/unity-bank-raises-pat-by-4-to-n465bn-in-q1-2019/

Greg Davis Resigns as Ecobank Chief Financial Officer
https://businesspost.ng/2019/04/26/greg-davis-resigns-as-ecobank-chief-financial-officer/

To be sincere, the result is not bad as some have painted it to be. Maybe they were expecting more from the company.

tritritri:
wat wrong wit d result ?? am abt to enter dis ooh..i think it a flat result..

Board Seeks Shareholders' Nod to Sell Dangote Flour for N130bn
https://businesspost.ng/2019/04/26/board-seeks-shareholders-nod-to-sell-dangote-flour-for-n130bn/

Qureshi Joins Ecobank Board as Khalifa, Matjila Leave
https://businesspost.ng/2019/04/26/qureshi-joins-ecobank-board-as-khalifa-matjila-leave/

Q1’19: Wema Bank Amazes Shareholders with N1.1bn Profit
https://businesspost.ng/2019/04/26/q119-wema-bank-amazes-shareholders-with-n1-1bn-profit/

FBN Holdings' EPS Rises to 42 Kobo on 6.8% Growth in PAT
https://businesspost.ng/2019/04/26/fbn-holdings-eps-rises-to-42-kobo-on-6-8-growth-in-pat/

You are welcome sir

rebekah2011:
Noted Sir

I am sorry for the gender error. Your moniker (Rebekah) deceived me. From the results, the company had a loss after tax of N290.1 million. It was the PBT that reduced to N134.7million.

rebekah2011:
It is HE. You are correct Sir.

I don't understand ma

rebekah2011:
This Linkage loss is another record with this figure oooo. Kindly correct Sir

Linkage Assurance Declares N290bn Loss in 2018
https://businesspost.ng/2019/04/26/linkage-assurance-declares-n290bn-loss-in-2018/

Oando Improves PAT by 9.5% to N4.6bn in Q1'19
https://businesspost.ng/2019/04/26/oando-improves-pat-by-9-5-to-n4-6bn-in-q119/

Ecobank States When Shareholders Should Expect Dividend
https://businesspost.ng/2019/04/26/why-we-cant-pay-dividend-to-shareholders-now-ecobank/

Prospect of Sterling Bank Paying Higher Dividend in Future Excites Shareholders
https://businesspost.ng/2019/04/26/prospect-of-sterling-bank-paying-higher-dividend-in-future-excites-shareholders/

CCNN Declares N3.6bn Profit in Q1 2019
https://businesspost.ng/2019/04/25/ccnn-nets-n3-6bn-profit-as-revenue-rises-213-in-q1-2019/

Nigerian Breweries Woes Sink Q1 2019 Profit by 22%
https://businesspost.ng/2019/04/25/nigerian-breweries-woes-sink-q1-2019-profit-by-22/

Fidelity Bank Delivers Double-Digit Growth in Quarterly Revenue
https://businesspost.ng/2019/04/25/fidelity-bank-delivers-double-digit-growth-in-quarterly-revenue/

Sterling Bank Grows Profit by 4.52% Amid 8.23% in Earnings
https://businesspost.ng/2019/04/25/sterling-bank-grows-profit-by-4-52-amid-8-23-in-earnings/

Fidson Sees Growth in Profit, Revenue With GSK Deal
https://businesspost.ng/2019/04/24/fidson-sees-growth-in-profit-revenue-with-gsk-deal/

Transcorp Generates Lower Revenue in Q1'19
https://businesspost.ng/2019/04/24/transcorp-generates-lower-revenue-in-q119/

By Modupe Gbadeyanka

The Economic and Financial Crimes Commission (EFCC) has arrested the Chief Executive Officer of Galaxy Transportation and Construction Services Limited, Mr Babagana Dalori, who allegedly defraud 27,400 Nigerians to the tune of about N7 billion through fake promises of mouth-watering returns on their investment in his companies.

Mr Dalori, who is currently undergoing interrogation in the commission, had incorporated the firm in 2012 with one tricycle (Keke NAPEP), which through pool investments by members of the public later boasted of 50 tricycles.

The entrepreneur later diversified into other business ventures while promising mouth-watering returns to investors. The agency’s investigators discovered that Mr Dalori initially paid 200 percent interest on investors’ deposits in the firm and later reduced the interest to 135 percent before the scheme crashed in 2018.

To suck as many unsuspecting victims into his Ponzi net, Mr Dalori engaged in massive advertisements on radio and television, including a production of a movie by A-list Nollywood actors, which aimed at convincing members of the public to invest in his companies.

As a victim stated, “he even went to the extent of organizing Nollywood stars to produce a movie for him to further promote public investment into his company. He specifically organized some actors and actresses in Kannywood to act in a movie called “Zero Hour” to show the need for people to invest in Galaxy.

“Unfortunately, his gimmicks paid off as different people took their hard-earned savings, inheritance, pensions and other source of income and invested in Galaxy. Now, the scheme has crashed and investors can no longer get their money.

“At the moment, he has used the investors’ money to incorporate different entities without getting their consent. He now has Galaxy Global Energy Concept Ltd, Galaxy Miners Concept Ltd, Galaxy Global Farms, Galaxy Computers, Galaxy Block Making Factory, Galaxy Hospital and Galaxy Hotel.”

Mr Dalori’s modus-operandi is typical of those of Nigerian wonder banks, by accepting deposits from members of the public when his company is not a licensed financial institution, the suspect and his company have committed a criminal act punishable by the Banks and Other Financial Institutions Act.

At the moment, all bank accounts belonging to Galaxy have been frozen in order to prevent further dissipation of investors’ funds, pending the conclusion of investigation.

His media aide, Mr Cletus Onoja, however, blamed Mr Dalori’s inability to honour his obligation to his investors on the loss of one of his companies’ largest dredgers in Jere sand mining site in Kaduna State.

https://businesspost.ng/2019/04/24/how-galaxy-ceo-collected-n7bn-from-27400-investors/

By Modupe Gbadeyanka

Pan-African lender, United Bank for Africa (UBA) Plc, has announced making a total of N28.7 billion as profit in the first three months of 2019. This figure is higher than the N23.7 billion profit after tax netted by the company in the corresponding period of 2018.

UBA, which recently commenced full banking operations in the United Kingdom, disclosed further that it raked N98.6 billion as interest income against N90.3 billion generated a year ago, while the interest expense increased to N40.5 billion from N36.8 billion.

According to the financial statements of the bank released to the Nigerian Stock Exchange (NSE) today, a total of N24.2 billion was realised from fees and commission income against N20 billion in Q1 2018, while the fees and commission expense rose to N7.5 billion from N5 billion.

However, the net trading and foreign exchange income dropped in Q1 2019 to N6.1 billion from N6.7 billion, but the operating income jumped to N83.7 billion from N77.6 billion.

In the period under review, the profit before tax appreciated to N30.2 billion from N26.6 billion, while the earnings per share (EPS) rose to 82 kobo from 67 kobo.

https://businesspost.ng/2019/04/23/uba-makes-n28-7bn-profit-in-first-three-months-of-2019/

UBA's Capital Buffer Strong to Support Growth—Uzoka
https://businesspost.ng/2019/04/24/ubas-capital-buffer-strong-to-support-growth-uzoka/

Dangote Flour Shares Gain 9.81% After News of Proposed Sale
https://businesspost.ng/2019/04/24/dangote-flour-shares-gain-9-81-after-news-of-proposed-sale/

SAHCO Raises NSE Market Cap by N6.29bn, Lists 1.354bn Shares
https://businesspost.ng/2019/04/23/sahco-raises-nse-market-cap-by-n6-29bn-lists-1-354bn-shares/

Transcorp Hilton Promotes Seimodei to Director of Operations
https://businesspost.ng/2019/04/24/transcorp-hilton-promotes-seimodei-to-director-of-operations/

UBA Makes N28.7bn Profit in First Three Months of 2019
https://businesspost.ng/2019/04/23/uba-makes-n28-7bn-profit-in-first-three-months-of-2019/

CBN Resumes OMO Auction, Slightly Slashes Rates
https://businesspost.ng/2019/04/24/cbn-resumes-omo-auction-slightly-slashes-rates/

You May Consider Buying These Stocks This Week
https://businesspost.ng/2019/04/23/you-may-consider-buying-these-stocks-this-week/

Olams Offers to Acquire Dangote Flour for N130bn
https://businesspost.ng/2019/04/23/olam-offers-to-acquire-dangote-flour-for-n130bn/

Zenith Bank Redeems $500m Eurobond From Cash Reserves
https://businesspost.ng/2019/04/23/zenith-bank-redeems-500m-eurobond-from-cash-reserves/

FBN Holdings Gets Buy Rating Amid Asset Quality Issues
https://businesspost.ng/2019/04/23/fbn-holdings-gets-buy-rating-amid-asset-quality-issues/

Stock Market Outlook for This Week
https://businesspost.ng/2019/04/23/stock-market-outlook-for-this-week/

Proshare Introduces Dangote Index, Elumelu Index
https://businesspost.ng/2019/04/23/proshare-introduces-dangote-index-elumelu-index/

N46.25bn Treasury Bills Mature This Week
https://businesspost.ng/2019/04/22/n46-25bn-treasury-bills-mature-this-week/

By Nneka Okumazie

According to the National Universities Commission (NUC), Nigeria has 170 universities, with 79 private and 32 owned by church groups. But, of all, none are, known to be, working tirelessly on solving any major problem in Nigeria.

The solution a university can provide for electricity generation and distribution or to corruption, or unemployment, starvation, absolute poverty, sloppy healthcare, bad roads, disorganized housing, traffic, etc. is not the building or development.

Their solution can be design, modelling, studies, tiny experiments, various recommendations to one problem, or aspects of it, so whoever – public, private or foreign – is interested in projects in that area would see established paths, to build solutions.

Not the approach where many projects are like a gamble, and sometimes fail, or unsustainable – because no superfluity of independent studies or plans, or paths prior to development.

Yes, some universities have centres and advanced studies but none are – markedly – onto solutions to major problems in Nigeria.

How universities can help in solving problems of underdevelopment should be the noise, and move, not complain or excuses.

There are some solutions studies that will take a few thousand – if the group really knows what to do. Also, their publications can be relatable and positioned for usefulness.

There are some states or government areas that will be willing for some solutions – they can be the targets of the studies. And if there are none interested, the group can keep doing the studies – selflessly, making it accessible, so whoever does garbage project would be shamed for ignoring appropriate knowledge.

This should have been the standard expected of all universities, instead, misplaced agitation is against church universities and why they aren’t free.

People often cite missionary schools, but free missionary schools meant sponsors paid for it. Population or interest in education then was not as much as it presently is, and the society was probably more honest than now: because free can be abused and wrecked.

There would have been times the missionary schools went through budget constraints but had to maintain the tuition-free status, using additions or strategies from wherever else, but never disclosed.

It is super backward to compare missionary schools of the past to church universities.

If a university continuously works on studies on how to scrap poverty, they will find great solutions. If the solutions are used – externally – it would be more impactful to many, than just free tuition for one, or some, out of the explosive population of the nation.

Yes, church universities with scholarship for members should communicate it better. And maybe increase quotas. But their higher duty – to an extent – lies in the solution they can provide to society.

Any university can have any structure, beauty, order, facility, or star professor, but without contributions to how the country can move forward in great ways, the school offers incomplete education.

Nigeria had thought that graduates were not sound enough hence the need for more private universities, but with tens of universities and technology, more graduates are better.

The problem may not be quality of grammar, knowledge or exposure. It is probably that there’s no passion to solve the problems of the country.

There are many who go for training or learn something for the purpose of work and pay, which is close to what education is, across the country.

But another path is to learn – for competence, to focus solely on solutions to the problems of the country. There are great ideas possible on how to solve the problem of bed shortages at emergency wards of tertiary clinics.

There are great ideas possible on how to ease rush hour traffic. There are great ideas possible on how to improve electricity generation and distribution.

There are great ideas possible on how to increase income, increase purchasing power and to better the conditions of living – as angles to eradicating poverty.

These ideas can come from studies, models or designs as realistic recommendations; setting up paths for solution.

There are students who struggled to attend federal and state universities, but after graduation, no work. Unemployment is a bigger problem, possible for many, than whose church member’s child went to what university for free.

How can universities do thousands of studies on how to solve unemployment in Nigeria? How can these be useful and adaptable across sectors?

Yes, members of churches should have more opportunity to go to the schools that belong to the church, using different kinds of scholarships or loan models.

But should the church provide work too, afterwards, for all?

Nigeria is sometimes uncomfortable to many. There is no joy in gross darkness. There are pole problems, transformer outages, distribution imbalance, underwhelming generation, etc. Yes, it is expensive to do major electricity projects but studies on problems and solutions are possible, for cheap, across Universities.

All those who criticize church university for fees probably hate the church. They may also think true church growth is just underdevelopment, NO. It is about faith, hope and worship – in Spirit and in truth.

In the advanced countries cited to spite church growth in Nigeria, the fiercest knowledge of psychiatry, psychology, neuroscience, etc. is yet to understand or solve most mind and behavioural problems. There are stories of the effects on many every day, with meds, therapy, etc. failing for some.

It is true that prayer points change elsewhere because of development, but in advanced countries, there is hate, wickedness, bitterness, envy, deceit, unknown intention, pride, greed, evil, desperation, intrusive thoughts, etc. An infrastructure does not solve any of these.

If anyone is on the receiving end of those, by someone more privileged, or say dominant, the person would wish they knew how to ask Jesus for help – in the ways He can answer.

Nigeria may be tending towards the ideal society of survival for the fittest. A phenomenon some learned about and run their lives by, but detrimental to the good of the society.

As population grows and opportunities thin, it is impossible to not have more competition on one thing, and many doing whatever it takes to get it. No university seems to be working on solutions for the future to prepare for more people pursuing less stuff.

Church universities can teach discipline, sound education and help to solve problems of the society. But if any university is free for all students and does nothing else to solve community problems that school may be waiting to fail.

It is always great to remember, for devout Christians, that Christ is the model of Christianity, not any Pastor, or church, or individual.

[Hebrews 12:2, Looking unto Jesus the author and finisher of [our] Faith; who for the joy that was set before Him endured the cross, despising the shame, and is set down at the right hand of the Throne of God.]

https://businesspost.ng/2019/04/22/should-church-universities-be-free-for-members/

GTBank Won’t Issue Bonus Shares to Shareholders—Agbaje
https://businesspost.ng/2019/04/22/gtbank-wont-issue-bonus-shares-to-shareholders-agbaje/

Zenith Bank to Maintain Investments in Retail Segment
https://businesspost.ng/2019/04/21/zenith-bank-to-maintain-investments-in-retail-segment/

Access Bank Not Issuing Any Eurobond in 2019
https://businesspost.ng/2019/04/22/access-bank-not-issuing-any-eurobond-in-2019/

Access Bank Gets Hold Rating With Cautious Outlook
https://businesspost.ng/2019/04/20/access-bank-gets-hold-rating-with-cautious-outlook/

Guinea Insurance Seeks More Time to File FY 2018, Q1 2019 Results
https://businesspost.ng/2019/04/20/guinea-insurance-seeks-more-time-to-file-fy-2018-q1-2019-results/

Investors Oversubscribe Ecobank $450m Eurobond
https://businesspost.ng/2019/04/19/investors-oversubscribe-ecobank-450m-eurobond/

Africa Prudential Considers New Ventures to Improve Earnings
https://businesspost.ng/2019/04/19/africa-prudential-considers-new-ventures-to-improve-earnings/

By Dipo Olowookere

A Freedom of Information (FoI) request has been sent to the Chairman of Code of Conduct Bureau (CCB), Mr Muhammed Isah, by a prominent anti-corruption group known as Socio-Economic Rights and Accountability Project (SERAP).

The group wants Mr Isah to use his “good offices and leadership position to urgently provide information on specific details of asset declarations submitted to the CCB by successive presidents and state governors since the return of democracy in 1999.”

According to SERAP, it is seeking information on “details of asset declarations by successive presidents and state governors between 1999 and 2019, including details of declarations made immediately after taking offices and thereafter, and for those who have left public offices, at the end of their term of office.”

The group also said it wants information “on the number of asset declarations so far verified by the CCB and the number of those declarations found to be false and deemed to be in breach of the Code of Conduct for Public Officers, by the Bureau.”

In the FOI request dated April 18, 2019, and signed by SERAP deputy director, Mr Kolawole Oluwadare, the organisation said, “While we welcome the judgment by the Code of Conduct Tribunal on Justice Walter Onnoghen, we now urge the CCB to extent its mandates to enforce constitutional provisions on asset declarations by public officers to cover elected officers and to vigorously pursue the prosecution of any such officers who use their powers either as presidents or state governors over public funds to enrich themselves.”

According to SERAP, “While judicial corruption is bad, the level of corruption involving many politicians since 1999 and the entrenched culture of impunity of perpetrators is equally appalling. Publishing the asset declarations of elected public officers since the return of democracy in 1999 to date would improve public trust in the ability of the Bureau to effectively discharge its mandates. This would in turn put pressure on public officers like presidents and state governors to make voluntary public declaration of their assets.”

The FOI request read in part: “SERAP is concerned that many politicians hide behind the fact that members of the public do not have access to their asset declarations to make false declarations, and to cover up assets illegally acquired in corruption or abuse of office. The CCB can use the opportunity presented by the Onnoghen judgment to increase the accountability of politicians through the asset declaration provisions if it is not to be accused of witch-hunting the judiciary.

“The grim condition of many of our citizens since 1999 has been worsened by the deterioration of public services whereby access to clean water and affordable health-care has become a pipe dream and the supply of electricity became epileptic and irregular due to years of grand corruption by many politicians at the highest level of government.

“We would be grateful if the requested information is provided to us within 14 days of the receipt and/or publication of this letter. If we have not heard from you by then, the Registered Trustees of SERAP shall take all appropriate legal action under the Freedom of Information Act to compel you to comply with our request.

“The persistent refusal by successive presidents and state governors to make public their asset declarations is entirely inconsistent with the letter and spirit of the 1999 Constitution, and has been particularly harmful to the country and its people, especially given the widespread evidence of grand corruption among politicians holding public offices in Nigeria.

“The Nigerian Constitution of 1999 (as amended) seeks to prevent corruption and abuse of office through its provisions on the declaration of assets not just by judicial officers but by all public officers including elected officers like presidents and governors.

“Nigerians can no longer accept the excuse by high-ranking government officers that declaring their assets before the CCB is enough, as such pretext is not supported by the oaths of office by elected public officers. The failure by successive presidents and state governors to voluntarily make public their asset declarations would seem to suggest that they have something to hide.

“Given that many public officers being tried for or convicted of corruption are found to have made a false declaration of their assets, the CCB should no longer allow politicians to undermine the sanctity and integrity of the asset declaration provisions of the Constitution by allowing them to continue to exploit legal gaps for illicit enrichment.

“SERAP believes that while elected public officers may not be constitutionally obliged to publicly declare their assets, the Freedom of Information Act 2011 has now provided the mechanism for the CCB to improve transparency and accountability of asset declarations by elected public officers.

“Asset declaration forms are public documents within the meaning of section 109 of the Evidence Act, and therefore, Nigerians are entitled to have access to such information. SERAP urges the CCB to vigorously push for change in law to provide penal sanctions for politicians that fail to make public their asset declarations.

“By Section 1 (1) of the Freedom of Information (FOI) Act 2011, SERAP is entitled as of right to request for or gain access to information, including information on the asset declarations by elected public officers since the return of democracy in 1999.

“SERAP notes that provisions on the declaration of assets by all public officers in Nigeria are entrenched in the Code of Conduct for Public Officers, contained in Part I of the Fifth Schedule to the 1999 Nigerian Constitution. The primary objective is to prevent corruption and abuse of office and to ensure transparency in public officers.

“SERAP also notes that public officers for the purposes of the Code include the President and the Vice-President of the Federation, state governors and their deputies; the President and Deputy-President of the Senate, the Speaker and Deputy-Speaker of the House of Representatives and Speakers, the Chief justice of Nigeria, justices of the Supreme Court, the President and justices of the Court of Appeal, and other judicial officers and all staff of courts of law.”

SERAP, therefore, urged the CCB to disclose including by publishing on a dedicated website, details of asset declarations submitted by presidents and state governors since the return of democracy in 1999; disclose details on the number of asset declarations so far verified by the CCB and the number of those declarations found to be false and deemed to be a breach of the Code of Conduct for Public Officers by the Bureau; and immediately take cases of false asset declarations to the Code of Conduct Tribunal for effective prosecution of suspects, and include banning the politicians involved from holding public offices for at least a period of 10 years and seeking refund of stolen public funds as part of the reliefs to be sought before the Tribunal.

Business Post reports that since 1999, four persons have governed Nigeria as Presidents and they are Mr Olusegun Obasanjo, late Mr Umaru Musa Yar’Adua, Mr Goodluck Ebele Jonathan and Mr Muhammadu Buhari.

https://businesspost.ng/2019/04/18/serap-demands-asset-declarations-of-buhari-gej-obj-govs/

Nigeria Still Safe to Borrow Additional N7.9trn—FSDH
https://businesspost.ng/2019/04/18/nigeria-still-safe-to-borrow-additional-n7-9trn-fsdh/

Buhari Signs New Minimum Wage Bill Into Law
https://businesspost.ng/2019/04/18/buhari-signs-new-minimum-wage-bill-into-law/

By Dipo Olowookere

Some days ago, the Debt Management Office (DMO) released the public debt profile of the country and from their report, Nigeria’s debt stood at N24.4 trillion as at December 31, 2018.

The release of the report stirred another debate in the country, with different stakeholders appealing to federal government to reduce its borrowings.

But analysts at FSDH Research have said Nigeria still has room to borrow an additional N7.89 trillion before reaching a threshold of about N32 trillion.

In its report released this week, which was obtained by Business Post, the Lagos-based investment company said based on the fact that the public debt-to-GDP ratio of Nigeria, Africa’s largest economy, was still under 20 percent, precisely 18.89 percent, it can still get more loans to reach the 25 percent benchmark set for itself and the 56 percent international threshold set for countries in Nigeria’s peer group.

FSDH Research argued that countries like China, South Africa, India, UK and USA all have high debt-to-Gross Domestic Product (GDP) of over 50 percent, but stressed that they have successfully managed to deploy their borrowings into activities that can stimulate revenue generation including education, transportation, construction, security, technology, and other growth-enhancing infrastructure.

“By utilizing these borrowed funds in areas that improve the ease of doing business in their countries, they have been able to grow their economies further, create job opportunities, and create more avenues for their governments to grow their revenue,” the report said.

It advised the Nigerian government to diversify its revenue and create multiple sources so as to change the present narrative.

“Just as FSDH Research has suggested several times in our previous reports, there is an urgent need to expand the revenue base of the country through the growth of the non-oil sector.

“We suggest that the government should adopt strategies to increase and broaden its revenue. Some of these strategies include an increase in the tax base of the country (apart from an increase in the tax rate), removal of all administrative delays in obtaining licences and approvals (including titles to landed properties for building and agricultural purposes), the sale of unprofitable government assets and, removal of subsidies on electricity and Premium Motor Spirit (PMS).

“In addition, we emphasize that borrowing should be tied to specific projects that can improve the competitiveness of the country, such as the FGN Sukuk Bond.

“To conclude, as individuals and business entities in Nigeria, we can help government generate more revenue by paying our taxes and other dues as and when due. And government must surely reciprocate with the provision of appropriate facilities that will make life better for all,” it said.

Read the full report below

Have you ever had to borrow money and accumulate debt? Some individuals believe that debt is bad and as a result they live within their limited resources. But are debts really bad? Now, imagine that you run a chocolate-production business and you receive a large order to supply chocolates to a big customer who will surely pay you after supply.

After considering your resources, you find out that you do not have sufficient funds to purchase the raw materials required to produce the chocolates.

You are then faced with a decision to either borrow money from a willing lender to finance the operation and make your money later or not to borrow and lose the business. What will you do? It is your choice to make but borrowing is definitely a better option if the money is used for productive activities that have the capacity to pay back the debt as well as its associated interest.

Just as individuals and companies are faced with the dilemma of whether or not to borrow, countries also face the same problem.

Although it is difficult to find any country that does not borrow, there are key questions each country must ask. How much debt should they contract? What projects will the debt be used for? How will the loan be repaid on top of the associated interest? Whom should they approach to lend the money? What will be the impact of the loan servicing on the country’s ability to perform her obligations to the citizens? Some countries have shown that debt is not bad in itself. What truly matters is the productivity of the debt that is contracted.

Countries such as China, South Africa, India, UK and USA have high Debt-to-Gross Domestic Product (GDP) of over 50%. Our computation shows that despite the significant increase in Nigeria’s public debt in recent years, standing at N24 trillion, Nigeria’s Public Debt-to-GDP ratio is less that 20%. Based on this measure, Nigeria could borrow more.

The countries mentioned above, however, have managed to deploy their borrowings into activities that can stimulate revenue generation including education, transportation, construction, security, technology, and other growth-enhancing infrastructure. By utilizing these borrowed funds in areas that improve the ease of doing business in their countries, they have been able to grow their economies further, create job opportunities, and create more avenues for their governments to grow their revenue.

So, you might now be thinking, maybe debt is not bad after all. But, you must not be quick to say this. The matter of public debt must be weighed carefully and thoroughly. Just as there are countries that have done well because of increased borrowing, there are other countries whose high, unsustainable debt levels have not translated into economic development.

In reviewing Nigeria’s debt profile, FSDH Research observes that the level of debt has been on the increase over the years. As at December 2018, the total public debt increased to N24.39trillion. But this is not where the issue lies.

A further analysis shows that the Public Debt-to-GDP ratio is 18.89%, which is below the 25% benchmark the Federal Government of Nigeria (FGN) sets for Nigeria and the 56% international threshold set for countries in Nigeria’s peer group.

The 25% benchmark gives Nigeria a leeway to borrow an additional N7.89 trillion given her level of GDP. But before you are quick to celebrate, there is the need to consider one very important factor: the ability of the country to service the debt without causing untold hardship on the country.

In measuring the ability of a country to service her debt obligations, we look at the ratio of domestic debt service-to-FGN FAAC allocation.

This is where the problem lies for Nigeria. Low revenue generation makes it very difficult for the FGN to meet its debt obligations without sacrificing other important responsibilities of government.

FSDH Research notes that the current high debt service to revenue structure in Nigeria is unsustainably high and the high figure is due to the low revenue of the country. Although the strategies of the Debt Management Office (DMO) in debt management and the Central Bank of Bank of Nigeria (CBN) in monetary policy administration have reduced the interest burden of the government, Nigeria needs to accelerate revenue generation to enable it to meet all her debt obligations without stress.

The way to change this narrative is for Nigeria to diversify her revenue and create multiple sources. Just as FSDH Research has suggested several times in our previous reports, there is an urgent need to expand the revenue base of the country through the growth of the non-oil sector.

We suggest that the government should adopt strategies to increase and broaden its revenue. Some of these strategies include an increase in the tax base of the country (apart from an increase in the tax rate), removal of all administrative delays in obtaining licences and approvals (including titles to landed properties for building and agricultural purposes), the sale of unprofitable government assets and, removal of subsidies on electricity and Premium Motor Spirit (PMS).

In addition, we emphasize that borrowing should be tied to specific projects that can improve the competitiveness of the country, such as the FGN Sukuk Bond.

To conclude, as individuals and business entities in Nigeria, we can help government generate more revenue by paying our taxes and other dues as and when due. And government must surely reciprocate with the provision of appropriate facilities that will make life better for all.

https://businesspost.ng/2019/04/18/nigeria-still-safe-to-borrow-additional-n7-9trn-fsdh/

CCT Orders Removal of Justice Onnoghen, Gets 10-Year Ban
https://businesspost.ng/2019/04/18/cct-orders-removal-of-justice-onnoghen-gets-10-year-ban/

I also noticed that NPL of 10%. I believe what they did was to indicate in some areas of the results the combined entity, while in other areas, the single entity like the personnel cost, which was almost flat. The H1 results will give us a clear view of the true position of things

Mpeace:
The impact of the marriage is seen in the %500 rise in NPL from 2% to 10%. We need to see the audited q2 result sha. This one is good but their tax also looks not enough.

Ecobank's $450m 5-Year Eurobond Gets 'B' Rating from Fitch
https://businesspost.ng/2019/04/18/ecobanks-450m-5-year-eurobond-gets-b-rating-from-fitch/

Nigeria Seeks Fresh N76bn Loan for Power, Road Projects
https://businesspost.ng/2019/04/18/nigeria-seeks-fresh-n76bn-loan-for-power-road-projects/

It is presently trading at N6.95k per share

veecovee:
How much is access selling house?

Naira Depreciates by 0.05% in I&E to Trade at N360.42/$
https://businesspost.ng/2019/04/18/naira-loses-0-05-in-ie-to-trade-at-n360-42/