₦airaland Forum

On a lighter note, you are one of those not patronising 'Made In Nigeria' products.

But from a very reliable source, a tier-1 bank in Nigeria wants to acquire Diamond Bank.

onegentleguy:
Yes I remember !!

Even up until the last 48 hours, the likes of Bloomberg and Reuters are still reporting of a possible fund injection from an unnamed foreign entity. ...with the deal pursued and brokered by the banks biggest core investor- the Carlyle group.
Given the small source at my disposal, I prefer to believe the reports from these foreign media houses than this news of an acquisition by ACCESS BANK from our local dailies.

Again I think the management of DIAMOND are up to something.
Best to watch 'the series of this movie' from the side line.

It is well.

Do you remember how Diamond Bank denied that its Chairman and three directors did not resign to allow representatives of the new investors on the board? Days later, the Chairman himself, in an interview, confirmed that there were actually discussions with investors and that Mr Uzoma Dozie was asked to resign too.

onegentleguy:
Not sure that this is true !!
It's unfortunate that most of our media houses are quick to put out totally unverified reports, fake/virtual news and make-believe rumours ahead of real ones.
...wouldn't be surprised if the bank (DIAMOND) comes out to rebuff the content of these publications.
I think the management of the bank is trying hard to play out some pranks with the shareholders. ...they very likely have something up their sleeves.

Wouldn't advise anyone to KEY into this stock until there is absolute clarity.
Best to stay away from DIAMOND BANK !! ...at least for now.

We continue to observe.
It is well.

As usual, Diamond Bank has also denied being in talk with Access Bank.

With all the red flags on Diamond Bank, I hope some people will not feign ignorance in the future.

From an insider, things are 'better' than we think. If you have Diamond Bank in your portfolio, Please don't sleep or doze off on a moving bicycle.

Regards.

Access Bank to Acquire Diamond Bank
https://www.businesspost.ng/2018/11/12/access-bank-to-acquire-diamond-bank/

By Modupe Gbadeyanka

The Central Bank of Nigeria (CBN) may offer treasury bills at the primary market as high as 16.20 percent before the end of this year.

This is the forecast given by analysts at notable Lagos-based investment company, FSDH Research, in a report released last week.

According to the report obtained by Business Post, the apex bank may want to offer the T-bills at such high stop rate in order to curb the incessant movement of funds out of the country by foreign portfolio investors (FPIs), who are mainly leaving for better yields in advanced economies.

It noted that the apex bank will likely raise the treasury bills yields to manage liquidity and urged investors to “take advantage of the current yields in the long end of the treasury bills market.”

But FSDH Research emphasised that the 16.20 percent stop rate it is projecting is for the one-year instrument, with the 91-day bill expected to hit 11.76 percent, while the 12-day paper should reach 14.12 percent.

Also in the report, the firm is predicting that in November 2018, the 91-day note should be auctioned at 11.30 percent, the 182-day paper at 13.66 percent and the 364-day instrument at 15.93 percent.

Business Post reports that at the last exercise on October 31, 2018, the central bank offered the 91-day bill at 10.98 percent, the 182-day bill at 13.49 percent and the 364-day bill at 14.40 percent.

Stock Market to Further Succumb to Selling Pressure—Analysts
https://www.businesspost.ng/2018/11/12/stock-market-to-further-succumb-to-selling-pressure-analysts/

CBN Likely to Sell T-Bills at 16.20% in December 2018
https://www.businesspost.ng/2018/11/12/cbn-likely-to-sell-t-bills-at-16-20-in-december-2018/

GCR Affirms AA-(NG) Rating on UBA With Stable Outlook
https://www.businesspost.ng/2018/11/11/gcr-affirms-aa-ng-rating-on-uba-with-stable-outlook/

CBN Likely to Sell T-Bills at 16.20% in December 2018
https://www.businesspost.ng/2018/11/12/cbn-likely-to-sell-t-bills-at-16-20-in-december-2018/

Market Expects N552b Inflow as CBN Sells N128b T-Bills via PMA
https://www.businesspost.ng/2018/11/12/market-expects-n552b-inflow-as-cbn-sells-n128b-t-bills-via-pma/

New Investors: Diamond Bank Rubbishes Ex-Chairman’s Claim
https://www.businesspost.ng/2018/11/09/new-investors-diamond-bank-rubbishes-ex-chairmans-claim/

Fitch Returns Nigeria's Outlook to Stable, Forecasts 2% GDP Growth
**Says Inflation to Remain at Double Digits through 2019
**Debt to Hits 292% of Revenue
**Buhari Expected to Continue Economic Programme if Re-elected
https://www.businesspost.ng/2018/11/09/fitch-returns-nigerias-outlook-to-stable-forecasts-2-gdp-growth/

Nigeria Starts Roadshow on $2.8b Eurobond in London
https://www.businesspost.ng/2018/11/09/nigeria-starts-roadshow-on-2-8b-eurobond-in-london/

CBN Retains OMO Rates, Mops up N365b
https://www.businesspost.ng/2018/11/09/cbn-retains-omo-rates-mops-up-n365b/

Nigeria's Foreign Reserves May Drop to $25bn—Analysts Warn
https://www.businesspost.ng/2018/11/08/nigerias-foreign-reserves-may-drop-to-25bn-analysts-warn/

By Modupe Gbadeyanka

The recent free-fall in the foreign exchange (forex) reserves of Nigeria has continued to be a major source of worry for observers and analysts.

Some would have thought that with the rising price of crude oil in the global market, Nigeria, which depends solely on the export of the commodity to earn forex, would have had its external reserves swelling especially with the over $20 it gains for every barrel of crude oil sold.

In the 2018 budget, the Africa’s largest economy put its oil benchmark at $50.50 per barrel and the ‘black gold’ sells for over $70 per barrel at the moment.

In their daily report, analysts at FBNQuest Research expressed worry over the decline in gross official reserves by $2.31 billion in October to $42 billion.

They attributed the fourth monthly decline in succession to changes in the sentiment of foreign portfolio investors (FPIs) in the wake of the headwinds driven by US monetary policy.

In the report, the analysts said the Central Bank of Nigeria (CBN), a consistent buyer, has now become a source of forex at the investors’ and exporters’ window (NAFEX), stating that for the last eight weeks for which the data is available (through to 22 to 26 October), it has been the largest source of such inflows.

“Reserves at end-October covered almost 16 months’ merchandise imports, and nine months when we include services on the basis of the balance of payments to June 2018. This remains healthy cover by any criteria.

“We should address the million dollar tabloid question: what if all FPIs exited?  This is a fanciful idea, given the yields on offer and the oil price. We estimate a fall to a little above $25 billion, the level of reserves in Q2 2016,” the report said.

https://www.businesspost.ng/2018/11/08/nigerias-foreign-reserves-may-drop-to-25bn-analysts-warn/

Unity Bank Receives N79.7m Fine
https://www.businesspost.ng/2018/11/08/unity-bank-receives-n79-7m-fine/

Skyway Aviation Hopes to Rake N1.9b from IPO
https://www.businesspost.ng/2018/11/08/skyway-aviation-hopes-to-rake-n1-9b-from-ipo/

S&P Downgrades Diamond Bank Ratings, Raises Alarm
https://www.businesspost.ng/2018/11/08/sp-downgrades-diamond-bank-ratings-raises-alarm/

T-Bills Market Calm Ahead of Thursday’s OMO Sale
https://www.businesspost.ng/2018/11/08/t-bills-market-calm-ahead-of-thursdays-omo-sale/

CBN Conducts 'Emergency' OMO Auction, Keeps Rates Flat
https://www.businesspost.ng/2018/11/07/cbn-conducts-emergency-omo-auction-keeps-rates-flat/

By Modupe Gbadeyanka

The name of the Executive Vice Chairman of Aiteo Group, Mr Benedict Peters, has been removed from the Economic and Financial Crimes Commission (EFCC)’s list of wanted persons.

This is in conformity with the order given of Justice O.A. Musa of a Federal High Court in Abuja, Nigeria in March 2018, directing the removal of Mr Peters’ name from the list.

In the ruling, Justice Musa had described the process leading to his declaration as ‘wanted’ by EFCC as unconstitutional, since it was not initiated or validated by any known law or court order.

Reacting to this development, renowned constitutional and human rights lawyer, Mr Mike Ozekhome (SAN), said, “We wish to commend the EFCC under the leadership of Ibrahim Magu for living up to its commitment to uphold the rule of law and obey the order of a competent court to remove the name of the Mr Benedict Peters, from its list of wanted individuals.

“The EFCC has shown a deep regard for the sanctity of the nation’s legal system, and we can confirm that Peters’ name has been cleared.

“In view of this and based on the fact that the decision by EFCC is premised on a court order, Peters has been legally excluded from the list of wanted persons in Nigeria. He can therefore continue his lawful business and enjoy his constitutionally guaranteed rights.”

The EFCC in March 2017 declared Peters wanted on its website. However, in response to suit, FCT/HC/CV/23/2017, the court reached the incontrovertible conclusion that Mr Peters has never been charged with, nor tried for any criminal offence in any court of law, nor has he ever jumped bail for any offence howsoever in Nigeria and cannot be declared wanted by administrative fiat without any prior order or leave of court.

In the proceedings challenging EFCC’s actions, Justice Musa declared that “…the very act of declaring the Applicant (Benedict Peters) a WANTED PERSON on the official website of the first respondent (EFCC) without any prior order or leave of a court of competent jurisdiction to that effect is unlawful, illegal, wrongful, ultra vires, unconstitutional and constitutes a flagrant violation of the fundamental rights of the applicant to personal liberty, private and family life, freedom of movement and right to not to be subjected to inhuman treatment and degrading treatment as guaranteed under Section 34, 37, 41 and 46 of the constitution of the Federal Republic of Nigeria, 1999 (As amended) and Articles 2, 3(1) & (2), 4, 5, 6, 7, and 12(1) of the African Charter on Human and Peoples’ Rights (Ratification and Enforcement) Act 2004”.

Mr Peters has recorded successful outcomes in three other cases, including one overturning the forfeiture of his properties which were wrongfully included in a list of properties belonging allegedly belonging to a former minister forfeited by court orders.

https://www.businesspost.ng/2018/11/06/efcc-removes-benedict-peters-from-wanted-list/

By Modupe Gbadeyanka

Analysts at Financial Derivatives Company (FDC) have projected that inflation rate in Nigeria for the month of October 2018 will increase by marginally by 0.07 percent to 11.35 percent, making it the third consecutive month of rising inflation after a sustained period of declining price level.

In a report released by the firm, it was disclosed that the rise in the headline inflation would be influenced by increasing prices of food items in the country caused by floods and insecurity in agrarian states of the middle belt.

Business Post recalls that flood ravaged many communities in the country this year, which made it nearly impossible for farmers to reap the fruit of the labour.

Another issue is security caused by Boko Haram in the north eastern part of Nigeria and farmers/herdsmen clashes in the middle belt region of the country. Both crises have resulted in a decline in agricultural output and an increase in the prices of commodities such as onions, pepper and melon.

However, FDC said the month-on-month sub-index is expected to decline marginally by 0.01 percent to 0.82 percent (10.48 percent annualized) in October as a result of the harvest. Though, the increased supply was negatively impacted by disruptions in the food producing states.

The report said during the month, average on-grid power output increased by 6.77 percent to 3,752.23MWh/h, which it noted is expected to have a positive impact on aggregate output and also reduce the demand for alternative source of energy such as diesel.

The relative stability in exchange rate at the parallel market (N361/$-N362/$) could filter through to stable cost of imports.

FDC said the average wholesale (depot) price of diesel increased by 2.38 percent to N215/litre in October, pointing out that the retail price of diesel in Lagos was as high as N251/litre, reflecting a higher logistics cost, which could drive up the operating expenses of firms, with the price of premium motor spirit (PMS) also increased across the country.

According to FDC, an imminent increase in the minimum wage is likely to fuel inflationary pressures and push the fiscal deficit of both federal and state governments in the next few quarters.

An increase in inflation compounded by a spike in the unemployment numbers to be released this month will increase the misery index, which is currently 51.28 percent. This could be politically expensive for the incumbent government, the report said.

It added that the continued monetary policy normalization in the United States will further increase volatility and pressure on emerging market currencies, stressing that for Nigeria, this possible weakening of the naira could result in higher import prices.

“The next MPC meeting is scheduled to hold on November 19/20. The committee, which is saddled with the responsibility of ensuring price stability, is likely to continue with the tight monetary stance by maintaining the status quo,” the report said.

https://www.businesspost.ng/2018/11/06/rise-in-food-prices-to-spike-inflation-to-11-35-fdc/

Unity Bank to Raise N270b After Sale of N400b Bad Debts
https://www.businesspost.ng/2018/11/06/unity-bank-to-raise-n270b-after-sale-of-n400b-bad-debts/

Rise in Food Prices to Spike October Inflation to 11.35%—FDC
https://www.businesspost.ng/2018/11/06/rise-in-food-prices-to-spike-inflation-to-11-35-fdc/

By Modupe Gbadeyanka

The Central Bank of Nigeria (CBN) has revealed that a total of 2.3 billion Nigerian coins worth N1.60 billion were in circulation in the first six months of 2018.

In its Economic Report for the first half of 2018 released last week and obtained by Business Post, the apex bank said the coins comprise 1 kobo, 10 kobo, 25 kobo, 50 kobo, N1 and N2 denominations.

An analysis of the report by Business Post indicated that during the period under review, a total of 31.4 million pieces of the 1 kobo coin worth N3 million were in circulation.

Also, 315.6 million pieces of the 10 kobo coin valued at N32 million were in circulation, 348.3 million pieces of the 25 kobo coin worth N87 million were in circulation, while 681.5 million pieces of the 50 kobo coin valued at N340 million were in circulation.

Furthermore, a total of 736.1 million pieces of the N1 coin worth N740 million were in circulation in the reviewed period, while 204.4 million pieces of the N2 coin valued at N410 million were also in circulation in H1 2018.

Also in the report, the central bank said a total of 5.6 billion pieces of banknotes valued at N1.899 trillion were in circulation in the first six months of this year, bringing the total value of Naira in circulation in the period under consideration to N1.9 trillion.

This represented an increase of 1.4 percent over the level in the corresponding period of 2017, reflecting increased economic activities and the expansionary fiscal policy of the government.

In value term, banknotes, increased by 1.4 percent, compared with the level in the first half of 2017, while coins remain unchanged.

In terms of composition, the combined volume of N5, N10, N20 and N50 banknotes, as share of total currency in circulation in the first half of 2018, decreased to 27.0 percent, from 30.4 percent in the first half of 2017.

Similarly, the value dropped to 1.8 percent, from 2.0 percent in the corresponding period of 2017.

At end-June 2018, the value of N200, N100, N20 and N10 banknotes in circulation rose by 7.2 percent, 70.8 percent, 6.8 percent and 9.1 percent, respectively.

However, the value of N1,000, N500, N50 and N5 denominations declined by 0.2 percent, 0.8 percent, 24.5 percent and 39.8 percent, respectively, compared with the levels in the first half of 2017.

The report said the N1,000 and N500 banknotes remained dominant with shares of 60.7 percent and 28.1 percent, respectively, in value terms in the first half of 2018.

https://www.businesspost.ng/2018/11/06/2-3-billion-pieces-of-coins-worth-n1-60b-in-circulation-cbn/

N376b Inflows in Maturing Bills to Moderate Rates at Interbank
https://www.businesspost.ng/2018/11/05/n376b-inflows-in-maturing-bills-to-moderate-rates-at-interbank/

SAHCOL Gets Regulatory Approval to List Shares on NSE Via IPO
https://www.businesspost.ng/2018/11/05/sahcol-gets-regulatory-approval-to-list-shares-on-nse-via-ipo/

FSDH Expects October Inflation to Jump to 11.34%
https://www.businesspost.ng/2018/11/04/fsdh-expects-october-inflation-to-jump-to-11-34/

Thanks.

maishai:
love the new look of your site , i nearly confused it with busineess day site until I did not get this message "pls subscibe to read full story"........ Keep the good work alive

Fresh Panic Over Nigeria’s Economy as Two Banks Pack up
https://www.businesspost.ng/2018/11/03/fresh-panic-over-nigerias-economy-as-two-banks-pack-up/

Unity Bank to Unveil New Investors After Failed Milost $1b Deal
https://www.businesspost.ng/2018/11/03/unity-bank-to-unveil-new-investors-after-failed-milost-1b-deal/

It is really unfortunate that we are in this position. This is what we get when regulators wait for things to go bad before taking actions.

Godlylifeoneart:
@GonFreecss1
This is the message I have been preaching on dz forum. traders have misled investors by incorporating the Concepts of TA and FA which does not reflect the true status of >60% of listed companies in NSE.
Who can tell us the true capital inflows of 50% of the listed companies? Many of the companies declared money realized from assets sales as profit, dz builds up the inflow and subsequent alter the true PE ratio, and dz mislead investors in anticipating higher growth for the affected companies.
If it were not the Nigeria factors, A company like sky bank should have had PE ratio of zero before the suspension (medicine after death)
A bank like diamond should have a zero PE
The bank is now on a mission to sell assets and declare the proceeds as profits to investors.
NSE has defiled all known fundamental principles of investing and financial independence.
In my view, winners don't quit, quitters don't win either.
The way out is to ignore all the emotional and confusing analysis by the so called Wisemen that know everything about NSE.
Keep investing in companies that are well structured (management)
Companies that have the interest of minority shareholders. Such institutions will deliver at the long horizon.

NSE Lifts Suspension on Unity Bank Shares at Stock Market
https://www.businesspost.ng/2018/11/02/nse-lifts-suspension-on-unity-bank-shares-at-stock-market/

Stanbic IBTC Writes Off Delinquent Loans, Plans Significant Investment
https://www.businesspost.ng/2018/11/02/stanbic-ibtc-writes-off-delinquent-loans-plans-significant-investment/

Three Banks Fall Below 30% Liquidity Ratio Requirement—CBN
https://www.businesspost.ng/2018/11/02/three-banks-fall-below-30-liquidity-ratio-requirement-cbn/

CBN Mops up N517b to Curb Inflation as Investors Snub OMO Auction
https://www.businesspost.ng/2018/11/02/cbn-mops-up-n517b-to-curb-inflation-as-investors-snub-omo-auction/

How International Breweries Forced Nigerian Breweries, Guinness to Halt Price Hike
https://www.businesspost.ng/2018/11/01/how-international-breweries-forced-nigerian-breweries-guinness-to-halt-price-hike/

Nigeria Drops on Latest Ease of Doing Business Ranking
https://www.businesspost.ng/2018/11/01/nigeria-drops-on-latest-ease-of-doing-business-ranking/

By Dipo Olowookere

The World Bank has released its Ease of Doing Business raking for 2019 and Nigeria, which moved up by 24 steps in the 2018 log, slipped by one step in the latest standings.

Nigeria, which claimed the 145th position last year from the 190 countries surveyed, moved down to the 146th position in the new ranking.

Business Post reports that countries like Senegal, Lebanon, Niger, Tanzania and Mali claimed the 141st, 142nd, 143rd, 144th and 145th positions respectively.

Last year, when the 2018 ranking was released by the World Bank, Nigeria was among the 10 economies of the world to have recorded a significant improvement in their ease of doing business.

Economies are ranked on their ease of doing business, from 1–190. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm.

The rankings are determined by sorting the aggregate distance to frontier scores on 10 topics, each consisting of several indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to June 2018.

Business Post reports that in the latest ranking, Mauritius was the only Sub-Saharan African economy to join the group of top 20 economies this year.

According to World Bank, Mauritius has reformed its business environment methodically over time, making reforms more than once in almost all areas measured by Doing Business over the past decade.

Following seven reforms in the area of property registration captured by Doing Business since 2005, for example, the time needed to register property has decreased more than 12 times; the time needed for business incorporation has decreased almost 10 times as a result of four reforms in starting a business.

Two economies that enter the top 20 this year, the United Arab Emirates and Malaysia, have maintained such a reform momentum.

The United Arab Emirates is the highest ranking economy in the Middle East and North Africa region, with reforms captured in four areas.

Six reforms in Malaysia were measured by Doing Business, resulting in the second highest regional improvement in the ease of doing business score.

Twelve of the top 20 economies are from the OECD high-income group; four are from East Asia and the Pacific, two are from Europe and Central Asia and one each is from Sub-Saharan Africa and the Middle East and North Africa.

In the latest report, the top three economies this year are New Zealand, Singapore and Denmark, exemplifying a business friendly environment.

World Bank said in the report that, “Substantial variations in performance among Sub-Saharan African economies present an opportunity for policy makers to learn from the experience of their neighbours.

“In the area of getting credit, for example, officials in Angola (ranked 184) and Eritrea (186) could learn from the experience of Rwanda and Zambia (both ranked 3).

“The two latter economies share many of the good practices found in OECD high income economies, including reliable secured transaction laws and robust credit information sharing available through credit bureaus or registries.”

https://www.businesspost.ng/2018/11/01/nigeria-drops-on-latest-ease-of-doing-business-ranking/

NSE Suspends Trading on Shares of Unity Bank, 5 Others
https://www.businesspost.ng/2018/11/01/nse-suspends-trading-on-shares-of-unity-bank-5-others/