₦airaland Forum

CBN Raises Rates for 91-day, One-Year T-Bills at PMA
https://businesspost.ng/2019/01/17/cbn-raises-rates-for-91-day-one-year-t-bills-at-pma/

Banks Unlikely to Declare Huge Profits in 2019—Coronation Research
https://businesspost.ng/2019/01/16/banks-unlikely-to-declare-huge-profits-in-2019-coronation-research/

First Bank Targets Single NPL Ratio by Year End
https://businesspost.ng/2019/01/16/first-bank-targets-single-npl-ratio-by-year-end/

Nigeria's Inflation Rises to 11.44% in December 2018—NBS
https://businesspost.ng/2019/01/16/nigerias-inflation-rises-to-11-44-in-december-2018-nbs/

C&I Leasing Shares Hit 52-Week High of N9.04k
https://businesspost.ng/2019/01/16/ci-leasing-shares-hit-52-week-high-of-n9-04k/

By Dipo Olowookere

The National Bureau of Statistics (NBS) said on Wednesday, January 16, 2019, that inflation rate in Nigeria increased to 11.44 percent in the month of December 2018.

In its inflation report today, the stats office noted that the rate was 0.16 percent points higher than the rate recorded in November 2018, which stood at 11.28 percent, adding that increases were recorded in all COICOP divisions that yielded the headline index.

The NBS said on month-on-month basis, the headline index increased by 0.74 percent in December 2018, up by 0.06 percent points from the rate recorded in November 2018, 0.80 percent.

It explained that the percentage change in the average composite CPI for the 12 months period ending December 2018 over the average of the CPI for the previous 12 months period was 12.10 percent, showing 0.31 percent point from 12.41 percent recorded in November 2018.

In addition, the urban inflation rate increased by 11.73 percent (year-on-year) in December 2018 from 11.61 percent recorded in November 2018, while the rural inflation rate increased by 11.18 percent in December 2018 from 10.99 percent in November 2018.

On a month-on-month basis, the urban index rose by 0.76 percent in December 2018, down by 0.07 from 0.83 percent recorded in November 2018, while the rural index also rose by 0.72 percent in December 2018, down by 0.06 percent from the rate recorded in November 2018, 0.78 percent, the NBS report said.

Furthermore, the corresponding 12-month year-on-year average percentage change for the urban index was 12.51 percent in December 2018, less than 12.83 percent reported in November 2018, while the corresponding rural inflation rate in December 2018 was 11.75 percent compared with 12.05 percent recorded in November 2018.

https://businesspost.ng/2019/01/16/nigerias-inflation-rises-to-11-44-in-december-2018-nbs/

Investors Look Forward to Higher Rates at Today’s PMA as CBN Offers N225.5b T-Bills
https://businesspost.ng/2019/01/16/investors-look-forward-to-higher-rates-at-todays-pma-as-cbn-offers-n225-5b-t-bills/

Today's exercise should give us a better perspective of that.

Adiwana:
Hello house,What do you think the projected interest rate of TB will be next month especially it being the month of election l??

CBN OMO Auction Suffers Setback as Investors Snub Exercise
https://businesspost.ng/2019/01/16/cbn-omo-auction-suffers-setback-as-investors-snub-exercise/

Access Bank Gives Strong Warning Signal to Competitors
https://businesspost.ng/2019/01/15/access-bank-gives-strong-warning-signal-to-competitors/

Consider These Five Stocks This Week
https://businesspost.ng/2019/01/15/consider-these-five-stocks-this-week/

T-Bills Yields Settle at 15.07% as CBN Soaks N25b
https://businesspost.ng/2019/01/15/t-bills-yields-settle-at-15-07-as-cbn-soaks-n25b/

C&I Leasing Resumes Trading at N8.29 Per Share
https://businesspost.ng/2019/01/14/ci-leasing-resumes-trading-at-n8-29-per-share/

N786.4b T-Bills Mature as Analysts Predict Rise in Rates
**CBN to Auction Fresh N225.5b T-Bills
https://businesspost.ng/2019/01/14/n786-4b-t-bills-mature-as-analysts-predict-rise-in-rates/

By Dipo Olowookere

Nearly a year after facing some financial challenges, which led to a mass layoffs of hundreds of its employees, Dealdey has closed its operations in Nigeria.

Dealdey, Nigeria’s only daily deals website, was established by Mr Sim Shagaya in 2011, but left a year later to start Konga, which has now been sold to Zenox.

In 2016, Ringier, which operates PulseNG, acquired Dealdey with the hope of revitalising the firm for better returns.

However, that dream seems to have crumbled now because the company is shutting down its services in Nigeria.

While the company did not provide information nor issue a formal statement as to why it closed down, there were obvious signs that its business model could no longer push withstand the market.

At the moment, the e-commerce space is mainly dominated by Jumia and Konga, with other struggling to survive the harsh environment in the country.

In 2016, Nigeria, the largest economy in Africa, slipped into recession, but came out a year later. The economy is still recovering from the 2016 crisis it plunged into.

Several companies have found it difficult to stay in business since 2016.

https://businesspost.ng/2019/01/13/dealdey-shuts-down-operations-in-nigeria/

First Bank Recapitalises Subsidiary in Ghana With Fresh $72.5m
https://businesspost.ng/2019/01/13/first-bank-recapitalises-subsidiary-in-ghana-with-fresh-72-5m/

NSE Lifts Suspension on African Alliance Insurance
https://businesspost.ng/2019/01/13/nse-lifts-suspension-on-african-alliance-insurance/

Access Bank Mulls New Corporate Identity

https://businesspost.ng/2019/01/13/access-bank-mulls-new-corporate-identity-after-diamond-bank-merger/

T-Bills Market Stays Bearish as Lending Rate Falls to 22.50%
https://businesspost.ng/2019/01/12/t-bills-market-stays-bearish-as-lending-rate-falls-to-22-50/

Ecobank Not Under Investigation in Nigeria—Nedbank
https://businesspost.ng/2019/01/11/ecobank-not-under-investigation-in-nigeria-nedbank/

By Modupe Gbadeyanka

A branch Automated Teller Machine (ATM) officer with Jaiz Bank, Mr Alfa Ibrahim, has been arraigned before Justice Darius Khobo of the Kaduna State High Court.

The suspect was taken to court by the Economic and Financial Crimes Commission (EFCC) on January 9, 2019 on a one-count charge bordering on dishonesty to the tune of N33.8 million.

The money was said to belong to Jaiz Bank and was meant to be “loaded” into the bank’s ATM, but allegedly converted by the accused person to his personal use.

“That you, Alfa Ibrahim, while being Automated Teller Machine officer with Ja’iz Bank Plc, sometime in December 2017 in Kaduna within the jurisdiction of this Honourable Court did dishonesty take the sum of N33,810,000 being the property of Ja’iz Bank without its consent and with intent of permanently depriving it of the said amount, and you thereby committed an offence contrary to Section 270 of the Penal Code Law Kaduna State, 2017 and punishable under Section 271 of the same Law,” the count read.

However, when this charge was read to the suspect, he pleaded “not guilty” and the prosecuting counsel, Mr Esmond Garba, thereafter, urged the court to fix a date for commencement of trial, and to remand the defendant in prison custody.

Defence counsel, Kaile Yusuf, however, asked the court to grant his client bail, arguing that Mr Ibrahim was on administrative bail by the EFCC and “he did not violate the bail conditions”.

While adjourning to February 14, 2019 Justice Khobo granted him bail in the sum of N10 million, and one surety in like sum who must be a resident within Kaduna metropolis.

Similarly, Muhammad Nalami was also arraigned before Justice Khobo on a two-count charge bordering on “conspiracy, breach of trust and fraud” to the tune of N17 million belonging to Niroy Nigeria Limited.

Nalami was alleged to have connived with Hafeez Adamu (currently at large), and collected N17, 054,000 from the company, for the supply of grains, but he failed to deliver on the goods. Efforts to get a refund also proved abortive.

Count two reads: “That you Muhammed Nalami and Hafeez Ya’u Adamu sometime in June 2017 in Kaduna within the Kaduna Judicial Division of the High Court did dishonestly misappropriate or convert to your own use the sum of N17, 045,000 property of Niroy Nigeria Limited meant for purchase of three trucks and 990 bags of white sorghum grains, and you thereby committed an offence contrary to Section 293 of the Penal Code Law Kaduna State, and punishable under Section 294 of the same Law”.

He pleaded “not guilty” to the charges.

Prosecuting counsel, Esmond Garba urged the court to fix a date for commencement of trial and asked the court to remand him in prison custody.

Defence counsel, Y.Y. Mai’adashi made an oral application for the bail of his client. The application was, however, opposed by the prosecution.

Justice Khobo, thereafter, adjourned to February 14, 2019 for “commencement of trial” and ordered the accused to be remanded in prison custody pending perfection of bail application.

In a related development, Abubakar Liman Ibrahim and his company, Infaq Global Investment Limited, were also on January 9, 2019 arraigned before the trial judge on a four-count charge bordering on false pretence and issuance of dud cheque to the tune of over N27, 000, 000 (Twenty Seven Million Naira).

Abubakar was alleged by Alkasim Rilwanu, to have defrauded him in N46, 551,000 business deal, in which he was to supply baking flour, oil and bags of rice.

Rilwanu alleged that after supplying the goods, he was paid N11.5 million and another N7,470,000 leaving a balance of over N27 million. However, Abubakar issued four separate Zenith Bank cheques for the balance, which were returned unpaid by the bank. Efforts to get back the money proved abortive.

He pleaded “not guilty” to the charges.

Prosecuting counsel, Esmond Garba, thereafter, asked the court to fix a date for commencement of trial while praying the accused be remanded in prison custody pending trial.

Counsel for the defence, Y.Y. Gwazawa, moved the motion for bail dated January 7, 2019, which was served on the prosecution on January 8, 2019.

Garba, however, raised objection to the application on the “basis of the magnitude of the offence”.

Justice Khobo, granted bail to the defendant in the sum of N5 million and one surety in like sum who must be a resident within Kaduna metropolis, and adjourned to February 11, 2019 for “hearing”.

https://businesspost.ng/2019/01/11/jaiz-bank-atm-custodian-in-trouble-for-n33-8b-fraud/

New Investors Acquire 30% Stake in NEM Insurance
https://businesspost.ng/2019/01/11/new-investors-acquire-30-stake-in-nem-insurance/

Korea Offers to Develop Nigeria’s Derivatives Market
https://businesspost.ng/2019/01/11/korea-offers-to-develop-nigerias-derivatives-market/

CBN Borrows N343b to Mop up N375b Inflows From Maturing Bills
https://businesspost.ng/2019/01/10/cbn-borrows-n343b-to-mop-up-n375b-inflows-from-maturing-bills/

By Dipo Olowookere

The sum of N343 billion was raised from the local debt market on Thursday by the Central Bank of Nigeria (CBN) to mop up most of the N375 billion worth of treasury bills that matured today.

The apex bank sold the debt instrument to investors, who subscribed to the exercise, though most interests were seen in the long-dated tenors.

Business Post reports that of the N50 billion worth of the 91-day bills offered, the apex bank sold N1.19 billion at 11.90 percent, of the N100 billion worth of the 189-day paper, it raised N12.68 billion at 13.50 percent, and of the N250 billion worth of the 364-day note, it sold N329.32 billion at 15.00 percent.

At the close of transactions at the secondary market for T-bills, yields trended higher to close at 15.47 percent.

The one-month yield rose by 0.05 percent to finish at 15.23 percent, the 6-month paper appreciated by 0.18 percent to end at 14.64 percent, the 9-month note went up by 0.12 percent to close ar 16.74 percent, while the 12-month bill increased by 0.01 percent to finish at 17.30 percent.

However, the 3-month paper suffered a 0.03 percent loss to settle at 13.46 percent.

According to analysts at Zedcrest Research, “We expect yields to remain elevated as the current tight system liquidity levels are expected to constrain buying interests in the market, whilst a further OMO auction would cause yields to trend higher.”

At the money market today, the average rate declined marginally by 3 percent, with the Open Buy Back (OBB) and Overnight (OVN) rates closing the day at 22.67 percent and 24.67 percent.

This was as the N375 billion inflows from OMO T-bills maturities were mopped up by a N343 billion OMO sale by the CBN.

System liquidity consequently improved marginally to N66 billion negative and the rates are expected to remain elevated as system liquidity remains in negative territory, with the possibility for a further OMO sale by the CBN.

https://businesspost.ng/2019/01/10/cbn-borrows-n343b-to-mop-up-n375b-inflows-from-maturing-bills/

tritritri:
They just want to scam Abraj ...After investing 10M u want to dilute there money back to 4M ... First reconstruction followed by right issue...why not go for right issue since u need money ? more reason why d big guyz tink twice when u mention nse.

Abraaj is also a dying company. I want to believe they were left with no other option than to accept to convert the loan to equity in C&I leasing. If not, I really don't see this as a good deal.

Michael11stock:
With this what do we expect? buy or sell

In my view, selling one's holdings in the this company won't be a bad idea. But remember, after the reconstruction process is finalised, the share price should be around N7 per unit and with the rights issue/IPO underway, this value may further drop when the suspension is lifted by the NSE. At that point, you can re-enter if you feel things are looking good for the company.
But I really don't see this company performing any magic to remain viable.

Abraaj Takes Over 70% Stake in C&I Leasing
**As C&I Leasing Plans to Dilute Abraaj Holdings to 30%
**Mulls IPO, Rights Issue
https://businesspost.ng/2019/01/10/abraaj-takes-over-70-stake-in-ci-leasing/

CBN to Auction N823.5b Fresh Treasury Bills in Q1 2019
https://businesspost.ng/2019/01/10/cbn-to-auction-n823-5b-fresh-treasury-bills-in-q1-2019/

MRS Oil Nigeria MD/CEO Resigns With Immediate Effect
https://businesspost.ng/2019/01/10/mrs-oil-nigeria-md-ceo-resigns-with-immediate-effect/

CBN to Auction N823.5b Fresh Treasury Bills in Q1 2019
https://businesspost.ng/2019/01/10/cbn-to-auction-n823-5b-fresh-treasury-bills-in-q1-2019/

NSE Places GNI Shares on Full Suspension
https://businesspost.ng/2019/01/10/nse-places-gni-shares-on-full-suspension/

NSE Downgrades Nigerian Breweries to Medium Price Stock
https://businesspost.ng/2019/01/10/nse-downgrades-nigerian-breweries-to-medium-priced-stock/

By Dipo Olowookere

Trading activities on the floor of the Nigerian Stock Exchange (NSE) closed in the negative territory for the sixth consecutive trading session.

Business Post reports that the local bourse is yet to record its first gain in 2019 as investors, mostly foreign portfolio investors, continue to pull out of the market to observe happenings in the country from the sidelines.

This is because the anxiety created in the country by political gladiators is making some investors to jump out of the bus, while news of the exit of Teleology from 9mobile is also giving some of them something to worry about, especially concerning the repayment of the $1.2 billion syndicated loan the telco collected from the banks trading their shares on NSE few years ago, which plunged it into crisis.

At the close of market on Wednesday, the banking index reacted to this with a decline of 0.28 percent on the back of losses posted mostly by the lenders involved in the loan; GTBank, Access Bank, UBA, First Bank and Diamond Bank.

However, the huge loss of 4.35 percent recorded by the Industrial sector was mainly responsible for the bearish closure of the stock market yesterday.

Also, the Insurance index fell by 3.06 percent, while the Consumer Goods index and the Oil/Gas index appreciated by 0.74 percent and 0.15 percent respectively.

When market activities were wrapped up in the midweek session, the market depreciated by 2.33 percent, dragging the year-to-date loss to 6.66 percent.

Specifically, the All-Share Index (ASI) went down by 699.35 points to settle at 29,336.80 points, while the market capitalisation decreased in value by N261 billion to stay at N10.940 trillion from N11.201 trillion it was the previous day.

Business Post reports further that the stock market registered 19 losers against just 14 gainers at the close of business yesterday.

The heaviest price loser was Dangote Cement, which suffered a loss of N16 to finish for the day at N170 per share.

It was followed by GTBank, which crashed by 70 kobo to finish at N31.30k per share, and Eterna, which went down by 40 kobo to end at N3.95k per share.

Custodian Investment and Access Bank both lost by 35 kobo each to close at N5.60k per share and N5.50k apiece.

Conversely, it was a good day for Unilever Nigeria as its share price rose by N3.25k to settle at N37 per unit.

Julius Berger appreciated by N2.35k to close at N25.85k per share, while Flour Mills grew by 85 kobo to end at N18.85k per share.

Zenith Bank increased its share value by 70 kobo to finish at N21 per share, while Mobil Oil Nigeria garnered 40 kobo to close at N184 per share.

Despite the loss recorded on Wednesday, the market recorded a rise in the volume of shares exchanged by investors, though the value dropped.

The volume of shares traded increased by 8.62 percent from 216.3 million to 234.9 million, while the value went down by 15.88 percent from N2.7 billion to N2.3 billion.

It was observed that investors continued with the offloading of Diamond Bank shares, closing on Wednesday as the most active stock on the exchange with a turnover of 54.7 million units sold for N103.9 million.

It was followed by GTBank, which exchanged 27.7 million units worth N865.7 million, and Zenith Bank, which transacted 25.8 million units of its stock for N526.3 million. FBN Holdings sold 21.5 million shares valued at N152.1 million, while Transcorp traded 15.5 million equities worth N18 million.

One-Month T-Bills Yield Drops to 15.18% After Previous Day's 0.25% Rise
https://businesspost.ng/2019/01/10/one-month-t-bills-yield-drops-to-15-18-after-previous-days-0-25-rise/

9mobile Speaks on Exit of Adrian Wood from Teleology
https://businesspost.ng/2019/01/09/9mobile-speaks-on-exit-of-adrian-wood-from-teleology/

By Modupe Gbadeyanka

Organisers of the yearly Cowbellpedia Secondary Schools Mathematics TV Quiz Show have said qualifying examination for the competition will take place nationwide on Saturday, February 9, 2019 at designated centres.

The programme is sponsored by Cowbell Milk, the flagship brand from Promasidor Nigeria Limited, the makers of Cowbell Milk.

At a press conference on Tuesday in Lagos, Marketing Manager of Promasidor Nigeria, Mr Abiodun Ayodeji, explained that registration for this year is strictly online and the portal for registration, which opened on Monday, October 1, 2018, would be closed on Sunday, February 3, 2019.

He disclosed that contestants are required to register online at www.cowbellpedia.ng, adding that “The guidelines require the candidates or schools to visit www.cowbellpedia.ng click on link to register your school; fill all required fields in the form and submit. An email will be sent to the school and primary contact email addresses provided when filling the form. The link in the email received would be used to verify the email addresses.

“On successful login, you click on the ‘Add Candidates’ under Candidate Management; fill in the candidates’ information on the form, upload the candidate’s picture and click the Save Draft button; save draft information for 5 candidates before you submit their registration.

“If your school is a mixed school, at least two of the candidates must be female. After creating the draft registration for five candidates in a category (junior/senior), a button will be shown on the page to ‘Register junior/senior candidates’; click the button to complete the registration of the candidates for that category. A confirmation slip will be generated for download and will also be mailed to the school, candidate and parent/guardian email address. Print the confirmation slips and have it stamped and signed by the school principal as the confirmation slip will be required for admitting candidates at the examination venue.”

Each school, according to the Marketing Manager, is required to present its best 10 students in Mathematics (five from JSS3 and five from SSS2), irrespective of sex, religion, tribe or state of origin, to enhance its chance of qualifying for the next stage of the competition.

Also speaking, Managing Director of Promasidor, Mr Anders Einarsson, said he applications for the competition are open to students in JSS3 and SSS2 from ages 10 to 18 attending full time secondary education in both public and private schools in Nigeria.

He said the competition is divided into two phases: Stage 1 Qualifying Written Examination and Stage 2 TV Quiz Show.

As part of the brand’s deliberate effort in encouraging Girl Child interest in STEM courses, Mr Einarsson reiterated the company’s appeal to mixed secondary schools to nominate a minimum of two female students for each category. As research has shown that a positive relationship exists between girl child education and the GDP of a nation.

The Promasidor boss also disclosed that the ultimate prize for this year’s edition is N2 million and an all-expense paid educational excursion outside the country. The first and second runners-up will go home with N1.5 million and N1 million respectively. He said further that teacher of the top prize winner will be awarded N500,000, while those of the first and second runners-up will get N400,000 and N300,000 respectively.

https://businesspost.ng/2019/01/09/2019-cowbellpedia-math-qualifying-exams-hold-february-9/