₦airaland Forum

Conoil Shareholders Approve N2.15b Dividend
https://www.businesspost.ng/2017/08/12/conoil-shareholders-approve-n2-15b-dividend/

Why Nigeria’s Mutual Funds Now Attract International Interest—Experts
https://www.businesspost.ng/2017/08/12/nigerias-mutual-funds-now-attract-international-interest-experts/

By Dipo Olowookere

Senior Pastor of Champions Royal Assembly, Kubwa, Abuja, Prophet Joshua Iginla, has disclosed that it is better having a fake prophet than a false teacher.

In a message to his members and Nigerians, Mr Iginla explained that a false prophet can only mislead an individual but a false teacher can make the world lose everything.

Using some bible references, he further explained critically how a lot of the so called men of God have led their members wrong in the things of God.

“Any message that says when you become born again you are free from all your sins is right, but anyone that says once you are a believer and you sin, because you are born again, you are free, it’s a lie,” the cleric said.

Mr Iginla lamented that, “They have turned the grace of God to sèxual desires. They make young ones live in sin without the fear of God.

“Any message as such is heresy and from the pit of hell. The message can’t stand the test of time. If you want to teach grace, teach it well but don’t add the accessories of sin to grace. Any message that encourages sin is a comedy.”

“False teachers are worse than worst prophets. I teach grace, this new age grace message encouraging sin is dangerous. It is removing the ancient landmark’.

“When I hear some pastors teaching against tithe and offering, yet they are very good in raising funds, they say tithe and offering is old testament but still collect it.

“Native doctors, witches are there but they have decided to wage war against men of God of their type.

“There are some revelations made for a man of God consumption, not to be shared. When a mother and father know making love isn’t a sin but when it is done in the presence of their 5 year old child, it is an error. They are only making the child reckless. That is what some men of God are doing,” the man of God disclosed.

https://www.businesspost.ng/2017/08/12/fake-prophets-better-false-teachers-iginla/

Zenith Bank Pays 25k Interim Dividend to Shareholders
https://www.businesspost.ng/2017/08/10/zenith-bank-pays-25k-interim-dividend-shareholders/

Nigeria Plans $3b Eurobonds Sale to Refinance Treasury Bills
https://www.businesspost.ng/2017/08/10/nigeria-plans-3b-eurobonds-sale-refinance-treasury-bills/

Nigerian Stocks Stumble by 0.11% After Early Gains Disappear
https://www.businesspost.ng/2017/08/10/nigerian-stocks-stumble-0-11-early-gains-disappear/


SEC Alerts Capital Market Operators of Registration Interview
https://www.businesspost.ng/2017/08/10/sec-alerts-capital-market-operators-registration-interview/

Nigeria Plans $3b Eurobonds Sale to Refinance Treasury Bills
https://www.businesspost.ng/2017/08/10/nigeria-plans-3b-eurobonds-sale-refinance-treasury-bills/

Customers’ Rush for Treasury Bills Worries Banks
https://www.businesspost.ng/2017/08/10/customers-rush-treasury-bills-worries-banks/

Nigeria to Sell N62.4b Treasury Bills Next Wednesday
https://www.businesspost.ng/2017/08/09/nigeria-sell-n62-4b-treasury-bills-next-wednesday/

By Dipo Olowookere

A den belonging to kidnappers and ritualists was on Tuesday morning uncovered in the Ijaiye area of Lagos State.

According to a Lagos-based journalist, Mr Adeola Adeoti, the ritualist hole was discovered by a sweeper along the Lagos-Abeokuta Expressway.

It was gathered that the den is an underground canal in which many commuters ply and the group’s activities was exposed by a roadside sweeper who heard the voice of a woman crying for help from the canal.

The sweeper was said to have swiftly alerted some area boys around who quickly entered into the canal in the company of three soldiers.

However, their effort was rewarded as they apprehended a young man who was part of the kidnappers.

Unfortunately, before they entered the canal, the woman who cried for help had been killed, but her little baby was found.

Under the canal, the soldiers were said to have found different body parts and many routes linking to the canal.

In the course of their hunt, another man belonging to the group was also arrested and later confessed being part of a 28-member group operating under the canal.

However, one of the two men was burnt to ashes by the angry mob, while the other was taking to Ojokoro police station.

https://www.businesspost.ng/2017/08/08/photos-ritualists-den-discovered-in-lagos-baby-saved/

By Modupe Gbadeyanka

Federal Government has been urged to explain to Nigeria why it is desperately searching for crude oil in a “hotly contested land” in the Chad Basin.

This question was asked by President of the Nigerian Mining and Geosciences Society (NMGS), Prof. Silas Sunday Dada, at a press conference held on Monday, July 31, 2017 to condemn the recent attack by suspected Boko Haram members on oil exploration team.

According to Prof Dada, “Nigerians deserve to know the real reason why NNPC decided to embark on the Maiduguri’s suicide mission of searching for crude oil at Shekau’s background at a time when production level has climbed to 2.2 million barrels per day.”

He said, “The present crude oil exploratory work is centred on a triangle of hotly contested land stretching from Gubio in the west of Borno to Marte in the east, and Kukawa, in the far northeast corner near the shores of Lake Chad.”

“Although it could not be established if the Tuesday attack by the Boko Haram sect is motivated by a desire to control oil in the northeast of Nigeria, but it is undisputable particularly in recent months, that the group has been forced by the superior force of the military’s ‘operation dole’ in the area to rely on guerrilla tactics, particularly suicide bomb attacks, against the security forces and civilian militia.

“This involved the use of women and young girls in particular to detonate improvised bombs against civilian ‘soft’ targets such as mosques, churches as well as the University of Maiduguri, which teaches the ‘western’ education the group despises,” he added.

Read the full transcript of the press conference below;

The growing deadly attacks by the Boko Haram Group in the Northeast of Nigeria – a clarion call for negotiation before the precipice

“Those who would hunt a man should remember that the Jungle also contain those who hunt the hunters”–  Malcom X

Preamble

We have been watching with painful indignation, the spate of deadly attacks and wanton destruction of lives and properties being perpetrated by the deadly Boko Haram Group mostly in the northeastern Nigeria especially in Borno State in the last five (5) years. It is indeed an open secret that the deadly group has been holding out in the Maiduguri axis, launching expeditionary raids and dispatching suicide bombers to perpetrate cruelty to a shock. Their inhuman predation in that zone has become the staple news being dished out almost on daily basis to the helpless frustration of Nigerians.

It is apposite to start this short briefing with a plea that no one should misconstrue this press briefing we are holding right now as a ploy to castigate the government for what it ought to have done or ought not to have done on the issue of Boko Haram. Nothing of such is intended. We cannot however look helplessly and refuse to speak when our brothers, friends and professional colleagues were brutally murdered in the course of their national duties to this country last Tuesday by the dreaded Boko Haram sect. We feel indeed very sad and grieved by the untimely death of these patriotic men and only time can heal the wound left in our hearts by their sudden departure.

It is obvious that the recent sustained offensive by the Boko Haram group is to openly challenge and contest the government’s story on their degradation. It is saddening to observe that the celebrated claim by the Nigerian military for about a year now, over the “degradation of Boko Haram” which created the flippant impression that the rebellious group has been demoralized, demobilized, defeated and vanquished, was far from being true after all, as recent happenings have proved otherwise.

To worsen the situation, the same military rained bombs on the IDP camp at Rann, a sanctuary of the helpless refugees which it presumed to be the hideaway of the terrorists. The erroneous bombardment wasted 54 precious lives!

Although the need to grow Nigeria’s crude oil reserves must have motivated the government to intensify efforts on oil exploratory work in the inland Chad basin and Benue Trough areas, Nigerians deserve to know the real reason why NNPC decided to embark on the Maiduguri’s suicide mission of searching for crude oil at Shekau’s background at a time when production level has climbed to 2.2 million barrels per day. Sadly enough, this daredevil stunt has unjustifiably created a new set of widows and fatherless children.

The present crude oil exploratory work is centered on a triangle of hotly contested land stretching from Gubio in the west of Borno to Marte in the east, and Kukawa, in the far northeast corner near the shores of Lake Chad. Although it could not be established if the Tuesday attack by the Boko Haram sect is motivated by a desire to control oil in the northeast of Nigeria, but it is undisputable particularly in recent months, that the group has been forced by the superior force of the military’s “operation dole” in the area to rely on guerilla tactics, particularly suicide bomb attacks, against the security forces and civilian militia. This involved the use of women and young girls in particular to detonate improvised bombs against civilian “soft” targets such as mosques, churches as well as the University of Maiduguri, which teaches the “western” education the group despises.

The Dark Tuesday – Our Agony

It is no longer news that more than 50 people were killed in a Boko Haram ambush on an oil exploration team in northeast Nigeria on Tuesday last week with the possibility that the death toll could rise. What happened last week underscored the persistent threat posed by the jihadists, despite government claims they were a spent force, and also the risks associated with the hunt for crude oil in the volatile Lake Chad basin. It is noteworthy to state that the Tuesday’s attack in the Magumeri area of Borno state on a convoy of specialists from the Nigerian National Petroleum Corporation (NNPC) was the militants’ deadliest in months.

It should be noted that details of the ambush, which we initially thought to be a kidnapping case, have been slow to emerge and an exact death toll is difficult to establish, as the military strictly controls access to rural Borno. Worst still, telecommunications and other infrastructure have been severely damaged or destroyed in that part of the country over the years in the raging Boko Haram bloody escapade, which has left over 20,000 people dead and more than 2.6 million homeless since 2009. One source involved in dealing with the aftermath of the unfortunate event which took place on Tuesday revealed that the death toll has increased to more than 50 with a prospect that more casualties may be recorded.

It is crystal clear that the recent attack was not for abduction but rather to kill and show that the government’s claim of an incapacitated Boko Haram is a fallacy.

An aid agency worker in Magumeri, which is 50 kilometers northwest of Maiduguri revealed that a total of 47 bodies have been recovered from the bush as of Wednesday evening. Information at our disposal shows that “eleven of them were burned alive in their vehicle, which was stuck in a trench, and were buried in Magumeri as they could not be taken to Maiduguri”.

It should be placed on record that out of the nine (9) staff of the University of Maiduguri involved in the unfortunate attack, five (5) are geologists out of which two (2) have been killed, two (2) abducted and one (1) is still missing. Boko Haram insurgents have released a video of the two geologists abducted along with their driver. The video according to reports was recorded on Friday July 28, 2017 and sent to Channels Television. The two (2) geologists are Mr. Yusuf Ibrahim and Dr. Solomon N. Yusuf who are lecturers in the Geology Department of the University along with a driver of the University identified as Mr. Haruna Dashe, were seen in the video fervently appealing to the Federal Government, the University of Maiduguri administration and the NNPC to avoid the use of force and secure their release through a peaceful negotiation with the Abu Musab al-Barnawi’s group of the insurgents who are holding them in captivity

The names of some of the deceased staff of UNIMAID include Dr. Militus Joseph V., Dr Manaja M. Uba of Geology Dept, Idris Abubakar Njodi (Driver)and Dr. Daniel Birma and Mohammed Kamfo of the Soil Science Dept.

The Journey to the Precipice – How did we get to where we are?

The name “Boko Haram” which is usually translated as “Western education is forbidden” was founded in 2002 as a radicalized fundamentalist group in Maiduguri, but also active in Chad, Niger and northern Cameroun. The group came into limelight with increasing radicalization leading to a violent uprising in July 2009 during which its leader, Mohammed Yusuf, was summarily executed.

The group’s unexpected resurgence was marked by a mass prison break in September 2010 which was accompanied by increasingly sophisticated attacks, initially against soft targets, and progressing in 2011 to include suicide bombings of police buildings and the United Nations office in Abuja

Mohammed Yusuf who founded the sect that became known as Boko Haram in Maiduguri, the capital of the north-eastern state of Borno, established a complex group and school that attracted poor individuals and families from across Nigeria and neighboring countries. The center had the political goal of creating a state of anarchy, and became a recruiting ground for terrorists.

By denouncing the police and state corruption, Yusuf attracted followers from unemployed youth and in fact, it has been speculated that the real reason Yusuf founded Boko Haram was to use the opportunity to exploit public outrage at government corruption by linking it to Western influence in governance.

The government’s declaration of a state of emergency at the beginning of 2012, extended in the following year to cover the entire northeast of Nigeria, led to an increase in both security force abuses and militant attacks. In 2014 alone, Boko Haram had killed over 6,600 and in April 2014, the group have carried out mass abductions including the kidnapping of 276 schoolgirls from Chibok in Borno State. By mid-2014, the militants had gained control of some territories in and around their home state of Borno and expand up to about 50,000 square kilometres in January 2015, but failed to capture the state capital, Maiduguri, where the group was originally based.

The group was led by Abubakar Shekau until August 2016, when the group purportedly broke into two (2): one faction led by Abubakar Shekau and the other supposedly led by Abu Musab al-Barnawi.

The group at various times had alleged links to al-Qaeda and in March 2015, it announced its allegiance to the Islamic State of Iraq and the Levant (ISIL). Since the current insurgency started in 2009, the group has killed 20,000 victims, displaced 2.3 million from their homes and was ranked as the world’s deadliest terror group by the Global Terrorism Index in 2015.

Our Position

It is a known fact that man is not a creation of logic but rather, a creation of emotion, love and prejudice. He is bound to be happy at times of peace and grieves at times of adversity; he is receptive to justice/good governance and repulsive towards injustice/maladministration. It is in the light of this that the Nigerian Mining & Geosciences Society (NMGS) as a professional body feel grieved by the recent security challenges being faced at this point in our national life, particularly the ongoing carnage being perpetrated by the dreaded Boko Haram sect, in spite of the seriousness of the current federal government in bringing the dastardly acts to an end.

We owe ourselves, and generations to come, the obligation to commend the efforts of the present Administration of President Muhammadu Buhari over the serious attention given to the issue of Boko Haram since inception of this government. The huge amount of fund and human resources committed to fight the Boko Haram group to a standstill largely underscore the successes recorded so far. It is however sad to note that if the previous administration had handled the Boko Haram saga the way the present administration is doing, the story may have been different today. Those who were saddled with the constitutional obligation of protecting the lives and properties of citizens of the Nigerian State as well as its territorial integrity chose to do otherwise as evident in recent revelation of how the state resources meant to fight the Boko Haram insurgence was diverted for personal use. Corruption in the security services and human rights abuses committed by them during the previous administration have hampered efforts to counter the unrest and nib it in the bud.

While our great Society commends the pragmatic approach of the present administration in putting a stop to this national disgrace called Boko Haram, we want the military to urgently swing into action and adopt negotiation method which has shown to be more effective and life-saving than the use of force as witnessed in the release of substantial number of Chibok school girls, to rescue our colleagues and all others in captivity of the Boko Haram. We also wish to state that the war against Boko Haram insurgency in Nigeria has dragged on for too long and we therefore urge the Federal Government to redouble its efforts in the fight against the insurgency in the Northeast so that the Boko Haram problem is stamped out permanently sooner than later.

Conclusion

On behalf of myself and the entire esteemed members of our Society, we wish to restate our renewed confidence in the ability of the present administration of His Excellency President Muhammadu Buhari and the acting President Prof. Yemi Osinbajo in tackling the Boko Haram issue once and for all. We commend your efforts so far and pledge our sincere prayers towards overcoming this problem.

Once again, we urge the Federal Government to adopt the use of negotiation to secure the release of the Boko Haram captives by doing everything humanly possible to meet the demands of the sect. We also share in the grief being suffered by the families of the deceased professional colleagues and the traumatic agony those in Boko Haram captivity and their families are currently being subjected to. We pray the Almighty God help us all to surmount the barrage of problem being faced in both our national and private lives.

Ladies and Gentlemen of the Press, I sincerely thank you for standing by us at this critical time in the Society’s history. God bless you all.

Prof. Silas Sunday DADA (fnmgs)

President, Nigerian Mining and Geosciences Society

https://www.businesspost.ng/2017/08/04/nigerian-miners-geoscientists-question-search-oil-boko-haram-territory/

Nigeria’s Economic Environment Still Tough—IMF
www.businesspost.ng/2017/08/02/nigerias-economic-environment-still-tough-imf/


Blue-Chips Lead as Nigerian Stocks Extend Gains by 0.50%
www.businesspost.ng/2017/08/02/blue-chips-lead-nigerian-stocks-extend-gains-0-50/

By Dipo Olowookere

The International Monetary Fund (IMF) has disclosed that economic environment in Nigeria is still very challenging “despite some signs of relief in the first half of 2017.”

The global financial institution made this disclosure at the conclusion of its visit to the West Africa’s biggest economy, which fell into recession last year.

From Thursday, July 20, 2017 to Monday, July 31, 2017, the IMF team led by its Senior Resident Representative and Mission Chief for Nigeria, Mr Amine Mati, “held productive discussions with senior government and central bank officials.”

During the visit, the team also met with members of parliament, representatives of the banking system, private sectors, civil society, and international development partners.

Mr Mati, while commenting on outcome of the visit, emphasised that the country’s “economic backdrop remains challenging, despite some signs of relief in the first half of 2017.”

According to him, “Economic activity contracted in the first quarter of the year by 0.6 percent, mainly as maintenance stoppages reduced oil production.”

However, following four quarters of negative growth, the non-oil economy grew by 0.6 percent (year-on-year), on the back of a rebound in manufacturing and continued strong performance in agriculture.

He said various indicators suggest an uptick in activity in the second quarter of the year. Helped by favourable base effects, headline inflation decreased to 16.1 percent in June 2017, but remains high despite tight liquidity conditions.

The IMF senior executive noted that, “Preliminary data for the first half of the year indicate significant revenue shortfalls, with the interest-payments to revenue ratio remaining high (40 percent at end-June) and projected to increase further under current policies.”

According to him, “High domestic bond yields and tight liquidity continue to crowd out private sector credit.”

“Given Nigeria’s low growth environment and the banking system’s exposure to the oil and gas sector, non-performing loans increased from 6 percent in 2015 to 15 percent in March 2017 (8 percent after excluding the four undercapitalized banks),” he said.

Mr Mati pointed out that, “Faced with these challenges, the government has started implementing a number of important measures.”

He described the Economic Recovery and Growth Plan (ERGP) as driving the diversification strategy, and security in the Niger Delta improved through strengthened engagement.

“The new Investor and Exporter FX window has provided impetus to portfolio inflows, helped increase reserves above $30 billion, and contributed to reducing the parallel market premium.

“Important steps have also been taken in implementing the power sector recovery plan, introducing a voluntary income and asset declaration program and moving forward the 60-day national action plan to improve the business environment. Progress is also ongoing within the oil and energy sector through implementation of a new funding mechanism for cash calls,” he observed.

“However, near-term vulnerabilities and risks to economic recovery and macroeconomic and financial stability remain elevated.

“At 0.8 percent, growth in 2017 will not be sufficient to make a dent in reducing unemployment and poverty.

“Concerns about delays in policy implementation, a reversal of favourable external market conditions, possible shortfalls in agricultural and oil production, additional fiscal pressures, continued market segmentation in a foreign exchange market that remains dependent on central bank interventions, and banking system fragilities represent the main risks to the outlook.

“Acting on an appropriate and coherent set of policies to enhance an economic recovery remains urgent. This includes implementing immediately specific priorities that will help achieve the goals of the ERGP.

“In the near term, a stronger push for front-loaded fiscal consolidation through a sustainable increase in non-oil revenues would be needed to create space for infrastructure spending, social protection, and private sector credit.

“This should be simultaneously accompanied by a monetary policy that avoids direct financing of the government and is kept sufficiently tight, a unified and market-based exchange rate, and rapid implementation of structural reforms.

Pursuing these policies would help reduce macroeconomic vulnerabilities and create an environment for a diversified private-sector led economy,” Mr Mati said.

Concluding, he thanked the Nigerian authorities and “all those with whom they met for the productive discussions, excellent cooperation, and warm hospitality.”

www.businesspost.ng/2017/08/02/nigerias-economic-environment-still-tough-imf/

Is Equity Market Rally Sustainable?
www.businesspost.ng/2017/08/02/equity-market-rally-sustainable/

By Modupe Gbadeyanka

Federal Government has disclosed that it relies heavily on the Dangote refinery to fulfil its promise to Nigerians to end fuel importation by December 2019.

To this end, the Minister of State for Petroleum Resources, Mr Ibe Kachikwu, who visited the Dangote oil refinery site at Lekki Free Trade Zone, in Lagos, said government was ready to play its part as a responsible government to assist in making sure the project is completed before the scheduled date.

Mr Kachikwu, who said he was overwhelmed by the dimension of the project, explained that the present government had always believed that the private sector holds the ace in industrialization efforts of the government, and noted that the belief has been reinforced by what Dangote Group was doing.

“It is good to say that private sector is the answer to Nigeria’s problems with a project as big as this. The challenge I will give you today is that of time; I see your time for completion is 2019 December, but I am sure you will understand my greed if I tell you that the refinery component of this project should come earlier than the set date.

“I have made very firm commitment to Nigerians that I must stop the importation of petroleum products by 2019 and I am going to keep to it.

“It is absolutely important that we do this early and given the feat that we have achieved in terms of speed of construction and I urge you to do all within you to achieve its completion before the due date.

“I am sure His Excellency President Buhari will be absolutely enthused if he were to find himself, not only crystallizing the policy position we have taken so far, but also coming here himself to come and open a facility as big as this before the end of his first term.

“Whatever configurations your engineers have come up with, I urge that they go back to the drawing board and get me my refined products before your said date,” the Minister said at the visit.

In his response to the government’s challenge, President of Dangote Group, Mr Aliko Dangote, said he has accepted the challenge and would do all possible to achieve the feat.

“On the Minister’s challenge, we are going to make it by the grace of God. I am sure the Minister will support us to make sure that we meet his challenge.

“What the Minister is trying to do is the best so far for our country, his own version is that Nigeria should not think of exporting crude; you know the problem we have in Africa is that we only export raw materials, not finished goods, so he is saying that, look, we should all do this by adding value and I pray that even at 2.5 million barrels, we should not export much, in terms of the crude.

“We will go back and see what to do to make this happen by fast tracking our processes since the Minister has assured of government’s cooperation and support,” Mr Dangote said.

Earlier in his welcome address, Mr Dangote explained that his group was building the world’s largest single line refinery, Petrochemical Complex, and the world’s second largest Urea Fertiliser plant.

The refinery, according to him will have the capacity to refine 650,000 barrels of crude oil per day. The Petrochemical Plant will produce 780 KTPA Polypropylene, 500 KTPA of Polyethylene, while the Fertiliser project will produce 3.0 million metric tons per annum (mmtpa) of Urea.

“In addition, we are also building the largest sub-sea pipeline infrastructure in any country in the world, with a length of 1,100 km, to handle 3 billion SCF of gas per day.

“We also plan to construct a 570 MW power plant in this complex. As a matter of fact, gas from our gas pipeline will augment the natural domestic gas supply and we estimate an additional 12,000MW of power generation can be added to the grid with the additional gas from our system.

“We will be adding value to our economy as all these projects will be creating about 4,000 direct and 145,000 indirect jobs.

“We will also save over $7.5 billion for Nigeria annually, through import substitution and generate an additional $5.5 billion per annum through exports of the refined petroleum products, fertilizer and petrochemicals.

We envisage that these projects, which would cost over $18billion, would be completed in 2019,” he said.

https://www.businesspost.ng/2017/08/01/fg-begs-dangote-complete-refinery-2019/

FMDQ OTC Market Records N67.4tr Transactions in 6 Months
www.businesspost.ng/2017/07/31/fmdq-otc-market-records-n67-4tr-transactions-in-6-months/


Why Banks Charge High Interest Rates On Loans—Emefiele
www.businesspost.ng/2017/07/30/banks-charge-high-interest-rates-loans-emefiele/

Oando Raises Turnover by 26%, PAT by 117% in 6 Months
www.businesspost.ng/2017/07/31/oando-raises-turnover-26-pat-117-6-months/


HY: Dangote Cement Grows Sales Volume by 12.6%, Controls 65% Market Share
https://www.businesspost.ng/2017/07/31/hy-dangote-cement-grows-sales-volume-by-12-6-controls-65-market-share/

Nigeria’s Mutual Fund Assets Hit N300b Mark First Time Ever
www.businesspost.ng/2017/07/31/nigerias-mutual-fund-assets-hit-n300b-mark-first-time-ever/

Liquidation Dividend: NDIC Directs Depositors of 6 Banks to File Claims in 30 Days
www.businesspost.ng/2017/07/30/liquidation-dividend-ndic-directs-depositors-6-banks-file-claims-30-days/

By Dipo Olowookere

Governor of Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has explained why Deposit Money Banks (DMBs) in the country charge high interest rates on credit facilities to customers, which has been a source of worry for stakeholders.

It would be recalled that the recently, the Senate, also worried by this, called a stakeholders’ meeting in Abuja to address the issue.

On Saturday, July 22, 2017, while delivering a lecture entitled ‘The Dilemma of Monetary Policy and Exchange Rate Management in a Recession: Potential Options for Nigeria’ at the second Homecoming Series of the Economics Department of the University of Nigeria, Nsukka (UNN), Mr Emefiele gave reasons why commercial banks in the country charge high interest rates.

According to the CBN chief, the cost of operations of financial institutions makes it difficult for them to charge low interest rates on loans.

“Interest rates reflect not just the cost of capital but also the cost of doing business, and so we need to also look at interest rates from the perspective of the lender.

“Given that most banks have to individually provide security, power, and other infrastructure, it is not surprising that some of these costs are passed on to customers in the form of high interest rates,” the CBN Governor explained.

However, he assured that the CBN would continue to rely on moral suasion to encourage Deposit Money Banks in the country to be more considerate in interest charges on customers.

Mr Emefiele noted that the apex bank had been unjustly castigated for taking actions in the best interest of the economy.

According to him, with the inflation rate still hovering above 16 percent, the CBN would be failing in one of its key mandates if it cuts interest rates at this time.

He disagreed with argument of those pushing for a rate cut as a path to growth, noting that high inflation was inimical to economic growth.

The CBN Governor emphasised that the apex bank would not be deterred from its objective of setting the economy on the path of sustainable development in the medium to long-term.

At the moment, some banks charge above 18 percent as interest rate on loans and in some cases, others charge 26 percent.

This has made it very impossible for business owners, especially those in the Small and Medium-sized Enterprises (SMEs), to get the necessary funds to boost their businesses.

www.businesspost.ng/2017/07/30/banks-charge-high-interest-rates-loans-emefiele/

Treasury Bills Worth N65b Mature This Week
https://www.businesspost.ng/2017/07/29/treasury-bills-worth-n65b-mature-week/

By Modupe Gbadeyanka

One of Nigeria’s long-standing and most respected financial institutions, Union Bank of Nigeria Plc, on Thursday, July 27, 2017, announces its unaudited results for the half year ended June 30, 2017.

During the period under review, the lender grew its gross earnings to N73.7 billion from N60.1 billion recorded in the first half of last year, indicating a growth of 23 percent.

Also in the period, its profit before tax went up by 6 percent to N9.5 billion from N8.9 billion in the first six months of 2016.

Similarly, its interest income appreciated by 31 percent to N58.3 billion from N44.3 billion in H1 2016, largely driven by Naira devaluation-fuelled foreign currency loan book growth, while the net interest revenue before impairment rose by 2 percent to N31.7 billion from N30.9 billion in H1 2016, and the net interest margins tightened from 9.1 percent to 7.9 percent.

Union Bank said it remains on course to meet its key 2017 business objectives, including plans to raise up to N50 billion in Tier 1 capital through a rights issue during the third quarter.

The capital increase supports UBN’s strategy to accelerate business growth and position itself as a leading commercial bank in Nigeria. The rights issue is expected to launch in the third quarter once all regulatory approvals have been secured.

In the financial statements, Union Bank recorded a 19 percent rise in its net interest income, which stood at N26.3 billion against N22.2 billion a year ago, driven by a reduction in impairment charges.

However, its non-interest revenue declined by 2 percent at N15.4 billion versus N15.7 billion in H1 2016.

The cost to income ratio stood at 68.7 percent against 62.4 percent in H1 2016, reflecting increased investments in the brand, continuing technology CAPEX investments and a high inflationary environment.

Also, the gross loans went down 5 percent to N511 billion from N535.8 billion in December 2016, improved foreign exchange availability enabled optimizing of the foreign currency loan book.

Its customers deposits went up 15 percent to N759.3 billion from N658.4 billion in December 2016, affirming the growing confidence of customers in the bank.

Commenting on the results, the Chief Executive Officer of Union Bank, Mr Emeka Emuwa, stated that, “As our centenary celebrations continue and with the launch of our N50 billion rights issue in the second half of the year, 2017 will remain a very busy year for the bank.

“With our clear focus on enhancing the operational efficiency of the franchise, Gross Earnings grew by 23 percent in the first half of the year to N73.7 billion, from N60.1 billion in H1 2016.

“In a challenged economy, the Group delivered Profit Before Tax (PBT) of N9.5 billion, a 6 percent growth over the corresponding period in 2016.

“Despite stiff competition, our sales strategy and competitive brand continue to provide positive momentum, with Customer Deposits growing by 15 percent from December 2016 to N759.3 billion at the end of the period.

“In the second half of the year, our focus will centre on our rights issue launch; we will remain nimble to take advantage of emerging opportunities and while improving on service delivery to our customers."

Speaking on the first half numbers, Chief Financial Officer, Oyinkan Adewale, said: "Improved foreign exchange availability enabled us to bring our foreign currency loan book down to 44 percent of total loans, from 50 percent at the end of 2016.

“Eighteen percent customer deposit growth in the Nigerian bank allowed us to bring Loans to Deposit Ratio down to 65 percent from 82 percent at the end of 2016.

“Sustaining low cost deposit generation momentum, we were able to improve our low-cost deposit base to 69 percent of total deposits, from 65 percent at the end of 2016.

“The Group NPL ratio increased to 8.2 percent. This increase reflects the impact of a 5 percent decline in Gross Loans over the period, without which June 2017 NPL ratio would have been 7.82 percent. With total provision coverage in excess of 185 percent, NPLs remain extremely well covered.

“Going into H2 2017, we will focus on optimising funding costs and continue to keep operating expenses in check, while applying sound risk management practices to minimize impairment costs to ensure we deliver a sustainable financial performance."

http://www.businesspost.ng/2017/07/27/union-bank-posts-strong-hy-earnings-ahead-n50b-rights-issue/

By Modupe Gbadeyanka

Bulls maintained their dominance on the Nigerian Stock Exchange (NSE) on Thursday as the market closed 1.37 percent higher.

This was mainly influenced by strong half-year earnings posted by some quoted mid-sized companies as well as FBN Holdings today.

Business Post reports that Nigerian stocks extended gains at the close of activities today for the 16th straight day.

This is the longest winning streak by the Nigerian stock market in more than two-years.

In addition, the All-Share Index (ASI) closed today with an addition of 504.40 points to settle at 37,245.17 points, crossing the 37,000 point psychological mark for the first time in almost three years.

The last time it achieved this feat was in October 2014, before the present administration of President Muhammadu Buhari.

As the half year earnings continue to troop in, investors gained N174 billion on Thursday to leave market capitalisation at N12.84 trillion at the close of transactions.

Banking stocks, like the previous day, were investors’ delight today with UBA selling a total of 117.3 million shares valued at N1.2 billion.

Zenith Bank traded 63 million shares for N1.6 billion, while Diamond Bank exchanged 52.2 million shares at N66.6 million.

Also, FBN Holdings transacted 51.5 million shares worth N308.2 million, and FCMB traded 30.8 million shares valued at N40.1 million.

In all, a total of 542.8 million shares were traded on the floor of the NSE on Thursday in 5,939 deals valued at N8 billion.

An analysis of the price movement chart showed Nestle as the biggest gain with N45.50k rise to close at N955.50k per share.

It was trailed by Nigerian Breweries, which rose by N7.87k to finish at N173.77k per share, and Okomu Oil, which expanded by N3.54k to end at N74.41k per share.

Conoil progressed by N3.36k to settle at N36.40k per share, while Beta Glass appreciated by N2.87k to close at N60.34k per share.

http://www.businesspost.ng/2017/07/27/nigerian-stocks-go-16-days-unbeaten-index-hits-33-month-high/

By Modupe Gbadeyanka

The rally at the stock market was sustained for the 15th consecutive day as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) buoyed by 3.40 percent or 1207.77 points to settle at 36,740.77 points, crossing the 36,000 mark for the first time in several months.

Yesterday, as the Central Bank of Nigeria (CBN) announced keeping its MPR at 14 percent, the market reacted positively to it, leaving the market capitalisation to cross the N12 trillion mark for the first time since 2015.

Today, investors gained a total of N577.4 billion, the biggest daily gain in years, to push the market capitalisation to N12.7 trillion.

Business Post observed that investors continued their interests in banking stocks as they await half year earnings of the lenders, which might start coming in from next week.

at the close of midweek trading activities, First Bank emerged the most active stock, trading a total of 42.8 million shares valued at N258 million.

It was closely followed by UBA, which exchanged 34 million units for N345.8 million, and Zenith Bank, which sold 33.3 million shares worth N838.4 million.

Furthermore, Access Bank transacted a total of 30.9 million shares worth N324.4 million, while Fidelity Bank sold 28.9 million shares at N39.3 million.

In all, a total of 335.3 million shares were exchanged in 5,385 deals on the trading floor of the NSE on Wednesday worth N4.6 billion.

An analysis of the price movement chart showed Dangote Cement as the biggest gainer, growing by N11.50k to settle at N245 per share.

Total Plc rose by N11.1k to finish at N268 per share, while Nigerian Breweries moved up by N7.90k to close at N165.90k per share.

In addition, Presco appreciated by N4.45k to end at N68.50k per share, and Okomu Oil advanced by N3.67k to settle at N70.87k per share.

On the other hand, Business Post reports that Mobil suffered the heaviest fall after losing N1.50k to settle at N253 per share.

UBA followed with a slip of 33k to close at N10.8k per share, and Union Bank slumped by 26k to end at N5.43k per share.

Furthermore, SCOA dropped 18k of its share value to finish at N3.59k per share, while Custodian & Allied declined by 16k to settle at N3.40k per share.

http://www.businesspost.ng/2017/07/26/investors-gain-n577-4b-nse-index-hits-36000-mark/

Nigeria May Fall Into Another Long Recession if….—MPC Warns
http://www.businesspost.ng/2017/07/26/nigeria-may-fall-another-long-recession-mpc-warns/

By Modupe Gbadeyanka

One of the latest quoted companies on the Nigerian Stock Exchange (NSE) to release its financial statements for the period ended June 30, 2017, Livestock Feeds Plc, has declared a loss.

In the half year financial results released today, the firm declared a loss of N121 million in the first six months of 2017.

This occurred despite the slight increase in its gross profit in the period under review when compared with last year’s results.

Exactly a year ago, the company gross profit stood at N406.5 million, but it appreciated to N592.8 million this time around.

Also, Livestock Feeds raked N5.84 billion as total revenue as at June 30, 2017, in contrast to N4.57 billion.

The firm said during the period, it fully repaid the N1.8 billion loan it obtained in January 2016 at an interest of 7 percent for one year under the Commercial Agriculture Credit Scheme from Central Bank of Nigeria (CBN) through IBTC Bank.

It explained that repayment was by refinancing arrangement with the bank at the rate of 21.5 percent p.a for 90days pending the renewal of CACS by Central bank of Nigeria but this has been fully settled as at June 30, 2017.

The application submitted in January 2017 for renewal of this facility is yet to be approved by Central bank of Nigeria as at this date.

Livestock Feeds noted that the renewal of N500 million term loan and N500 million overdraft facilities were approved by Zenith Bank Plc for the company to finance working capital requirements with respect to production of animal feeds and to finance bulk purchase and stock piling of grains during the harvest season at the rate of 23 percent p.a and both facilities were utilised in the 1st quarter of the year.

However the sum of N352 million short term loan is still outstanding while the sum N448.5 million overdraft was utilised as June 30, 2017.

It further disclosed that First Bank of Nigeria Plc also approved a short term facility of N1 billion at the rate of 19.25 percent for 90 days for the procurement of grains but only the sum of N985 million was utilised by the company as at June 30, 2017, while the sum of N300 million overdraft was approved by GTBank Plc to augment the working capital of the company at the rate of 23 percent p.a and the sum of N288 million was utilised as at June 30, 2017.

In addition, the sum of N1.607 billion and N100 million term loans were received from the parent company UACN Plc and UAC Foods Limited at the rate of 15.5 percent to boost the working capital of the firm and specifically for the stockpiling of materials during the harvesting season in the last quarter of the year 2016.

The company also received additional N150 million from UAC Foods but at 18 percent p.a for the same purpose in the current year.

The sum of N1,700,573,994 and N255,327,397 is payable to UACN and UAC Foods Limited as at June 30, 2017 respectively.

http://www.businesspost.ng/2017/07/26/livestock-feeds-posts-n121m-loss-hy-2017/

By Modupe Gbadeyanka

While Nigeria is still battling to fully get out recession it went into last year, a new red flag has been raised by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN).

The committee is warning that if the Federal Government fails to implement and sustain policies put in place to grow the economy, the country may slump into a long recession.

Speaking yesterday at the end of the two-day MPC meeting in Abuja, Governor of the CBN, Mr Godwin Emefiele, noted that available forecasts of key macroeconomic indicators point to a fragile economic recovery in the second quarter of the year.

But he said the “committee cautioned that this recovery could relapse in a more protracted recession if strong and bold monetary and fiscal policies are not activated immediately to sustain it.”

“Thus, the expected fiscal stimulus and non-oil federal receipts, as well as improvements in economy-wide non-oil exports, especially agriculture, manufacturing, services and light industries, all expected to drive the growth impetus for the rest of the year must be pursued relentlessly,” he stressed.

Mr Emefiele further emphasised that the committee expects that timely implementation of the 2017 budget, improved management of foreign exchange, as well as security gains across the country, especially, in the Niger Delta and North Eastern axis, should be firmly anchored, to enhance confidence and sustainability of economic recovery.

He noted that the committee expressed concern about the slow implementation of the 2017 budget and called on the relevant authorities to ensure timely implementation, especially, of the capital portion in order to realize the objectives of the Economic Recovery and Growth Plan (ERGP).

The CBN boss disclosed that the committee identified the downside risks to this outlook to include weak financial intermediation, poorly targeted fiscal stimulus and absence of structural programme implementation.

http://www.businesspost.ng/2017/07/26/nigeria-may-fall-another-long-recession-mpc-warns/

By Modupe Gbadeyanka

Nigeria’s President, Mr Muhammadu Buhari, has confirmed “making good progress” after his Guinean counterpart, Mr Alpha Conde, called his countrymen to hold nationwide prayers for the Nigerian leader’s recovery and good health.

In a letter written to Mr Conde, President Buhari said, “I thank you for your kind and thoughtful action in organizing nationwide prayers for my good health. It is a gesture that I will forever cherish and treasure.”

In the letter dated July 24, 2017, Mr Buhari, who had earlier made a phone call to Mr Conde, who is the current Chairman of the Assemblies of Heads of State and Government of the African Union, further said, “Your Excellency will be pleased to hear that I am making good progress, and as soon as doctors advise, I shall return to my duties and continue serving the Nigerian people who elected me and are daily praying for my recovery.”

In an earlier letter, President Buhari had also accepted his nomination as leader of the “2018 AU Theme on the Fight Against Corruption”, which came from African leaders at the 29th Session of the Assembly of Heads of State and Government of the AU in Addis Ababa, Ethiopia, on July 4, 2017.

“While thanking you for the kind words and for the nomination,” the President wrote to Conde, “I wish to express my readiness to accept this new important role and to reiterate my commitment to contribute towards our collective efforts to strengthen good governance and development on the continent. I, therefore, look forward to working closely with you in the realization of this objective.”

Moments ago, pictures emerged showing President Buhari purportedly having lunch in London with some leaders of his ruling All Progressives Congress (APC) as well as Governors elected on the political platform.

http://www.businesspost.ng/?p=21714

By Modupe Gbadeyanka

Reports emerging from the Organization of the Petroleum Exporting Countries (OPEC) indicate that Nigeria has been 'informed' not to produce more than 1.8 million barrels of oil per day until the end of March 2018.

However, nothing has been said about Libya, which is being speculated might also be given a limit. The African nation presently has an output target of 1.25 million bpd by December.

Secretary-General of OPEC, Mr Mohammad Barkindo disclosed on Monday at a meeting of OPEC and non-OPEC members in St Petersburg, Russia that Nigeria has no intention of going beyond its oil production cap, indicating that the West Africa's biggest economy has agreed to this.

At Monday’s meeting, Kuwait's Oil Minister, Mr Essam al-Marzouq, disclosed that compliance by OPEC and non-OPEC countries with a previously agreed deal to limit oil output was at over 90 percent in June.

His counterpart from Oman, Mohammed bin Hamad Al-Rumhy, said today that Nigeria was willing cap its production at 1.8 million bpd.

He said an OPEC and non-OPEC joint output monitoring committee had recommended an agreement with Nigeria to limit the country's output at 1.8 million bpd.

These moves are being made to propel the price of crude oil in the international, which is presently below $50.

OPEC had in December 2016 agreed with several non-OPEC producers led by Russia to cut oil output by a combined 1.8 million bpd from January 2017 until the end of March 2018.

http://www.businesspost.ng/2017/07/24/opec-caps-nigerias-oil-output-1-8m-bpd/

OPEC Caps Nigeria’s Oil Output at 1.8m bpd
http://www.businesspost.ng/2017/07/24/opec-caps-nigerias-oil-output-1-8m-bpd/

African Alliance Stockbrokers Limited Quits NSE
http://www.businesspost.ng/2017/07/24/african-alliance-stockbrokers-limited-quits-nse/

Nigerian Stocks Start New Trading Week with N218b Gain
http://www.businesspost.ng/2017/07/24/nigerian-stocks-start-new-trading-week-n218b-gain/