₦airaland Forum

SEC Picks Deloitte, Others to Audit Oando
https://www.businesspost.ng/2017/10/21/sec-picks-deloitte-others-audit-oando/

T-Bills Market Remains Bearish as CBN Raises N133.8b
https://www.businesspost.ng/2017/10/21/t-bills-market-remains-bearish-cbn-raises-n133-8b/

**Urges Buhari to Sack Her

By Modupe Gbadeyanka

The Centre for Anti-Corruption and Open Leadership (CACOL) has appealed to President Muhammadu Buhari to urgently remove Mrs Kemi Adeosun as Minister of Finance.

The organisation, at a press briefing in Lagos yesterday, said the Minister has shown not to be capable of leading the Nigerian economy to greatness.

Executive Director of CACOL, Mr Debo Adeniran, said at the media conference that Mrs Adeosun has been everything but impressive and constantly appears to be confused on policies and in-depth understanding of economic management.

Mr Adeniran said, “The economic terrain under her watch is riddled by contradictions, policy somersaults and uncertainties. It is our conviction that it is the concerted efforts of the Central Bank and other MDAs trying to diversify, particularly the Agriculture Ministry and with the increase in the price of oil that helped pulled Nigeria out of recession recently and not via the acumen of the Finance Minister. We recommend that she should be replaced with better competence and prowess.”

https://www.businesspost.ng/2017/10/20/adeosun-not-competent-finance-minister-cacol/

Adeosun Not Too Competent as Finance Minister—CACOL
https://www.businesspost.ng/2017/10/20/adeosun-not-competent-finance-minister-cacol/

More Trouble as Johannesburg Stock Exchange Suspends Oando Shares
https://www.businesspost.ng/2017/10/19/johannesburg-stock-exchange-suspends-oando-shares/

Zenith Bank Gross Earnings Hit N531b in 9 Months, EPS Grows 35.6%
https://www.businesspost.ng/2017/10/19/zenith-bank-gross-earnings-hit-n531b-9-months-eps-grows-35-6/

Bankers, Judges Alert Nigerians on Crypto Currencies’ Risks
https://www.businesspost.ng/2017/10/19/bankers-judges-alert-nigerians-crypto-currencies-risks/

Bankers, Judges Alert Nigerians on Crypto Currencies’ Risks
https://www.businesspost.ng/2017/10/19/bankers-judges-alert-nigerians-crypto-currencies-risks/

GTBank’s Profit Rises 7.3% as EPS Grows by 7.24% in Q3
https://www.businesspost.ng/2017/10/18/gtbanks-profit-rises-7-3-eps-grows-7-24-q3/

Oando Reacts to SEC’s Suspension of Its Shares at Stock Market
https://www.businesspost.ng/2017/10/18/oando-reacts-secs-suspension-shares-stock-market/

SEC Okays New NSE Rules, Amendments
https://www.businesspost.ng/2017/10/18/sec-okays-new-nse-rules-amendments/

SEC to Conduct Forensic Audit into Affairs of Oando Plc
https://www.businesspost.ng/2017/10/18/sec-conduct-forensic-audit-affairs-oando-plc/

SEC Orders NSE to Suspend Trading of Oando Shares
https://www.businesspost.ng/2017/10/18/sec-orders-nse-suspend-trading-oando-shares/

By Modupe Gbadeyanka

Ecobank Nigeria Limited has distanced itself from an asset management company known as Atlantic Global Asset Management.

Atlantic Global Asset Management had solicited for investment from individuals, claiming to be in partnership with the lender.

But in a statement issued by Ecobank Nigeria and made available to Business Post on Wednesday, the bank said it has no business link with Atlantic Global Asset Management, warning members of the public that it would not be held liable if they fall victim of scam.

“It has come to our notice that a company called Atlantic Global Asset Management (AGAM), which claims to be an asset management company, with the headquarters in Cape Verde, has been distributing marketing messages via Whatsapp soliciting for investment from individuals.

“In the messages, they claim to have a cooperative relationship with Ecobank Nigeria Ltd.

“Please note that Atlantic Global Asset Management is not known to Ecobank Nigeria.

“Ecobank Nigeria is in no way associated or connected  with Atlantic Global Asset Management and will therefore not be liable in any manner whatsoever to any member of the public who relies on the false reference to Ecobank Nigeria in the broadcast of Atlantic Global Asset Management.  Please be warned.

“Ecobank Nigeria is not responsible for and is not obligated to control the actions or information (including content) of third parties; however Ecobank reserves the right to take legal action, including criminal action, against such individuals/entities if they infringe or infer false allegations of partnerships or business dealings which might call into question Ecobank’s reputation and standing.

“For any financial requirements, please contact Ecobank directly via our official website, www.ecobank.com or call +234 700 500 0000.”

https://www.businesspost.ng/2017/10/18/dont-know-atlantic-global-asset-management-ecobank/

We Don’t Know Atlantic Global Asset Management—Ecobank
https://www.businesspost.ng/2017/10/18/dont-know-atlantic-global-asset-management-ecobank/

Central Bank Auctions N133.8b T-Bills Today
https://www.businesspost.ng/2017/10/18/central-bank-auctions-n133-8b-t-bills-today/

CBN Auctions N20b 191-Day Bills as Overnight Rate Falls to 28.67%
https://www.businesspost.ng/2017/10/17/cbn-auctions-n20b-191-day-bills-overnight-rate-falls-28-67/

CBN Auctions N20b 191-Day Bills as Overnight Rate Falls to 28.67%
https://www.businesspost.ng/2017/10/17/cbn-auctions-n20b-191-day-bills-overnight-rate-falls-28-67/

By Dipo Olowookere

Nigeria’s Minister of Finance, Mrs Kemi Adeosun, has disclosed that Nigeria will reduce the rate at which it borrows money for developmental projects only if the tax to gross domestic product (GDP) hits 10 percent.

According to the Minister, the country’s tax to GDP ratio is at 6 percent.

Mrs Adeosun, while addressing newsmen, noted that with the tax to GDP ratio at 10 percent, the economy will flourish and consequently bring down the interest rate, which is presently in double digits.

The Minister informed newsmen that if the strategy of this present administration of President Muhammadu Buhari is allowed to be implemented, the private sector will be better for it because they will have the opportunity to assess funds to grow their businesses.

However, she emphasised that to make this happen, Nigerians must be ready to pay their taxes.

“We must pay taxes properly in Nigeria, if we do this, we do not need to borrow.

“Of course I am not suggesting that there isn't a responsibility on the part of government; we have to be more responsible, to be more efficient (when people citizens pay their taxes).

“We are really focusing on this, we are finding ways to cut cost, but fundamentally, we must invest but we don't have the power we need, the roads, we are work in progress.

“A lot of money is needed to reposition this economy and we need to generate more through tax.

“We just need to move our tax to GDP from 6 percent from where it is now to 10 percent; it will significantly reduce the amount of money we need to borrow and that will have a wider effect on the economy.

“One, it would reduce the demand for short-term borrowing and help bring down interest rate.

“Two, it would create headroom for the private sector to borrow; that is the strategy,” Mrs Adeosun said.

In June 2017, the Federal Government launched the Voluntary Asset and Income Declaration Scheme (VAIDS).

The platform was put in place for defaulting Nigerian taxpayers to work out a flexible way to pay their outstanding tax liabilities due from them relating to the last six relevant tax years, regularize their tax transactions and obtain genuine tax clearance certificate for all the relevant years without fear of criminal prosecution for tax offences and with the benefit of forgiveness of interest and penalties.

Mrs Adeosun had stated at the launch of the initiative that the policy embraces all federal and state taxes such as Companies Income Tax, Personal Income Tax, Petroleum Profits Tax, Capital Gains Tax, Stamp Duties, Tertiary Education Tax, Technology Tax, Tenement Rates, and Property Taxes.

“VAIDS is specifically targeted at taxpayers who have not been fully declaring their taxable income/assets; have not been paying the tax due at all; have been underpaying or under remitting; are under a process of tax audits or investigations with the Relevant Tax Authority; are engaged in tax disputes with the relevant tax authority but are prepared to settle the tax dispute out of court; are new taxpayers who are yet to register with the tax authorities; and are existing registered taxpayers who have new disclosures to make.

“It does not matter whether the relevant tax default arose from undeclared assets within or outside the country.

“If tax should have been paid, VAIDS is providing a once in a lifetime opportunity to declare the tax outstanding and resolve it definitively,” the Minister had said.

She had also said, “Nigeria’s tax to GDP ratio, at just 6 percent, is one of the lowest in the world (compared to India’s of 16 percent, Ghana’s of 15.9 percent, and South Africa’s of 27 percent).

“Most developed nations have tax to GDP ratios of between 32 percent and 35 percent. Whilst considerable progress has been made with taxing those in formal employment, self-employed persons, professionals and companies are able to evade full tax payment due to the inability of the tax authorities to access and assess their true income.

“According to Federal Inland Revenue Service the total number of tax payers in Nigeria is just 12,649,654 [as at April 2017]. Of these, 96 percent have their taxes deducted at source under PAYE and just 4 percent comply with Direct Assessment.”

https://www.businesspost.ng/2017/10/17/well-reduce-borrowing-tax-gdp-hits-10-adeosun/

We'll Reduce Borrowing if Tax to GDP Hits 10%—Adeosun
https://www.businesspost.ng/2017/10/17/well-reduce-borrowing-tax-gdp-hits-10-adeosun/

Key Highlights of UBA Q3 Financial Statements
https://www.businesspost.ng/2017/10/17/key-highlights-uba-q3-financial-statements/

By Dipo Olowookere

According to FSDH Research, the Central Bank of Nigeria (CBN) may soon change its monetary policy stance if it follows the opinion of the International Monetary Fund (IMF).

The IMF, in its World Economic Outlook (WEO) October 2017 edition, noted that it expects the inflation rate in Nigeria in 2017 and 2018 to remain elevated at double-digit levels. This is based on its assumption of the persistent effects of past inflationary shocks coming from sharp currency depreciations (including the parallel market exchange rate), higher electricity and fuel prices, and an accommodative monetary policy going forward.

The Fund expects an average inflation rate of 16.3% in 2017 and 14.8% in 2018. At the moment, the CBN adopts a restrictive monetary policy in order to curb the high inflation rate and maintain stability in the foreign exchange market.

The inflation rate in Nigeria declined for seven consecutive months to stand at 16.01% in August 2017.

FSDH Research forecasts that it will drop marginally to 15.96% in September 2017.

The IMF projects a growth in Gross Domestic Product (GDP) of 0.8% and 1.9% in Nigeria in 2017 and 2018 respectively. The growth is based on improved oil production and a strengthened agricultural sector.

The IMF expects an average Real GDP growth of 1.6% between 2017 and 2021 while it expects an average population growth of 2.75% between the periods. The GDP growth will not be sufficient to improve the wellbeing of the populace.

According to the IMF, the medium term risks to growth in Nigeria include concerns about policy implementation, market segmentation in the foreign exchange (FX) market and banking system fragilities.

The Fund also predicts a 42% increase in public debt from N18.06trn in 2016 to N25.59trn in 2017 and a further increase to N54.96trn in 2021.

The faster growth in public debt than the growth in GDP (at current prices) will result in a consistent increase in the public debt-to-GDP ratio between 2017 and 2021.

According to the IMF, the public debt-to-GDP ratio will increase to 25% in 2021 from 18% in 2016.

FSDH Research, in its Weekly Insights, said although this is below the target of 40% the Federal Government of Nigeria (FGN) sets for Nigeria, the burden of the interest payments on the loan may retard Nigeria’s growth potential except there are concentrated efforts to grow revenue.

On the global scene, the global upswing in economic activities that started in the second half of 2016 continues to strengthen. The IMF forecasts global economic growth of 3.6% in 2017 and 3.7% in 2018.

Notable increases in investments, trade and industrial production, as well as strengthening business and consumers’ confidence should support the global growth. The IMF identified the medium term risks to global growth to include a more rapid and sizeable tightening of global financial conditions; financial turmoil in emerging market economies; and geopolitical tensions.

The IMF expects oil prices (a simple average of prices of UK Brent, Dubai Fateh, and West Texas Intermediate crude oil) to average US$50.3 per barrel in 2017, an increase from the US$43 per barrel in 2016. The expected increases in global activity and higher oil prices will have a positive effect on the Nigerian economy going forward.

Although FSDH Research believes the IMF growth forecast for the Nigerian economy is conservative, the FGN must intensify efforts to implement policies that will stimulate investments in the Nigerian economy. This is necessary to accelerate inclusive growth.

Friendly policies in agro-allied industries, agriculture, telecommunications, power, solid minerals, real estate and manufacturing are important to jumpstart the economy.

https://www.businesspost.ng/2017/10/16/cbn-may-change-monetary-policy-stance-fsdh/

CBN May Change Monetary Policy Stance—FSDH
https://www.businesspost.ng/2017/10/16/cbn-may-change-monetary-policy-stance-fsdh/

Stock Recommendation for the Week (October 16, 2017)
https://www.businesspost.ng/2017/10/16/stock-recommendation-week-october-16-2017/

CBN to Sell N133.8b T-Bills This Week as N174b Bills Mature
https://www.businesspost.ng/2017/10/16/cbn-sell-n133-8b-t-bills-week-n174b-bills-mature/

2017: Mutual Funds Gain N11.9b in 9 Months
https://www.businesspost.ng/2017/10/16/2017-mutual-funds-gain-n11-9b-9-months/

Mutual Funds Asset Value May Hit N400b Before Year End
https://www.businesspost.ng/2017/10/16/mutual-funds-asset-value-may-hit-n400b-year-end/

Union Bank Share Floats to Remain Below 20% Unless…
https://www.businesspost.ng/2017/10/15/union-bank-share-floats-remain-20-unless/

CBN Sells N122.8b Bills via OMO in 5 Days
https://www.businesspost.ng/2017/10/15/cbn-sells-n122-8b-bills-via-omo-5-days/

Naira Moderates at Across Forex Market Segments
https://www.businesspost.ng/2017/10/15/naira-moderates-across-forex-market-segments/

Nigeria’s External Reserves Grow to $33.11b
https://www.businesspost.ng/2017/10/14/nigerias-external-reserves-grow-33-11b/

Nigeria’s External Reserves Grow to $33.11b
https://www.businesspost.ng/2017/10/14/nigerias-external-reserves-grow-33-11b/

Nigeria’s External Reserves Grow to $33.11b
https://www.businesspost.ng/2017/10/14/nigerias-external-reserves-grow-33-11b/