₦airaland Forum

Chika Amanze-Nwachuku

Nigerian banks are on the verge of another credit crisis, Citigroup’s Head of Frontier Market Banks and Research, Josh Levin has warned, citing what he described as deteriorating macro conditions in the country.



The economic analyst, in a presentation at the just concluded Citi media summit in London, noted that borrowers, mostly oil and gas industry operators are unable to service the loans obtained from the Nigerian banks due to the plummeting price of oil.

“Nigerian banks have made a lot of loans to the oil and gas industry. About 25 to 30 per cent of the bank loans went to the oil and gas sector. So as the price of the oil plunges, there will be a lot of concerns about the ability of the borrowers to service the loans, because the cash flow of the borrowers goes down.

He said: “The big issue at the moment for banks in Nigeria is Nigerian banks are on the verge of another credit crises. Alternatively, you could say, how well are Nigerian banks positioned to whether the deteriorating macro conditions in the country. The macro environment has really deteriorated over the past 15 months; so, what’s going on, the price of oil has plummeted. Even though Nigeria directly derives only a 15 per cent of its GDP from the oil industry, Nigeria derives roughly 80 per cent of its tax revenue from oil. So the low oil price, certainly negatively impacts the country’s economy.”

He noted that the consequence of this is the slowing loan growth; adding, “when the GDP goes high, loan growth goes high, when the GDP goes down, the loan growth tends to slow.”

According to Levin, most investors are concerned about the growth of Nigeria, a country of over 170 million people and the largest economy in Africa because of the strength of the country’s potential. He said for investors who are focused on the frontier markets, Nigeria tends to be the largest or one of the largest in the bench mark, adding that getting Nigeria right is very important to these investors.
The Citi analysts added: “The big issue right now is credit. Investors are worried that many of the loans by the Nigerian banks are going to go bad and these bad loans will severely impair the banks. So why would investors think the loans are going to go bad? I think the point is the GPD growth, when the GPD growth tends to slow, credits tend to deteriorate. These are what investors are worried about. These are the concerns on the credit side for the Nigerian banks.”

The economic expert, who put the average assets of big Nigerian banks at roughly $12 billion to $15 billion in size, said they are very small when compared to banks in the frontier markets.
He said the deteriorating macroeconomic environment is negatively affecting the Nigeria banks although there is no crisis indication yet in the banks’ second quarter results declared in July. According to him, from the results, the credit metric reported by the banks are not accurate and insisting that the banks are playing games with the numbers.

He said another more worrisome issue is the failure to further devalue the naira. He faulted the position of the Governor of Central Bank of Nigeria that the country has a stable currency; there is no need to further devalue the naira. He said investors view that as incredible and reasoned. He said despite the pronouncement by the CBN governor, investors are waiting for naira devaluation. “So, what the central bank governor has done basically is trying to protect the currency, to defend it at about 200 levels. It is because of these policies that the foreign currency access is restricted.”

On the restriction of foreign exchange access, he said Nigerian businesses need access to US dollars to import the things they need in Nigeria.

He said, for instance, a Nigerian food company needs access to US dollars for importation of items to be used for manufacturing the foods locally in Nig


Source:http://www.nairausd.com/2015/10/nigerian-banks-heading-for-another.html?m=1

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Exchange Rate for B Pound-Naira, 5th Monday October 2015



http://www.nairausd.com/2015/10/exchange-rate-for-b-pound-naira-30th.html?m=1

Obiagelli:
This fellow should be severely dealt with.

Kai

Exchange Rate Of Dollar To Naira,5th Monday October015

http://www.nairausd.com/2015/10/exchange-rate-of-dollar-to-naira5th.html?m=1

Ezenwammadu:
Body odour will soon fix it in the fullness of time

Bad bele ×2

Is allowed ×2

In M.I voice

Exchange For Euro To Naira,5th Monday October 2015



http://www.nairausd.com/2015/10/exchange-for-euro-to-naira5th-monday.html?m=1

Electricity generation in the country has dropped by 1,100 megawatts as output from Egbin Power Plant, the biggest generating power station in Nigeria has dropped to zero, THISDAY has learnt.

THISDAY gathered that the 1,320 megawatt-capacity plant was generating 1,100 megawatts before the drop in generation.

The development, it was learnt, followed an alleged sabotage by one of the former employees of the defunct Power Holding Company of Nigeria who threw an object into the power plant and it tripped off.

The defunct PHCN workers, on their part, had claimed that the management invited about 100 hoodlums in five buses to sack them from the Egbin Housing estate.

Other occupants of the estate include: staff of Transmission Company of Nigeria (TCN) and workers of Egbin Power Plc.

THISDAY gathered that the unidentified persons removed the roofs of the houses occupied by the former employees apparently without the knowledge of the Chairman of the Board of Egbin Power Plc, Mr. Kola Adesina, who was said to be outside the country.

It was learnt that trouble started when these unknown persons allegedly removed the roofs of the houses of some TCN staff and Egbin workers in error and in protest , one of the affected workers allegedly threw an object into the power plant and it tripped off.

THISDAY was also informed by one of the workers last night that the roofs of both the retired workers and serving staff of TCN and Egbin were removed, thus exposing their families and property to heavy downpour.

“The retirees have been living with us and they did not create problems for anybody. They are agitating that the houses should be sold to them because similar houses were sold to former PHCN staff at Ikoyi and Ikeja. But the Bureau of Public Enterprises (BPE) refused to sell the houses and told the retirees that the case of Egbin is different because it is a power station and housing units are tied to power stations. The matter is in court and we have been living peacefully and waiting for the case to be decided. But the Managing Director invited hoodlums on Friday and they removed the roofs of TCN staff and many of us working at Egbin in error,” he explained.

“We gave the houses to TCN staff because they are the ones that evacuate the power we generate. When our roofs were removed in error, everybody got angry because our property and families were under the rain. So, I think someone threw something to the plant and it tripped off,” he added.

He alleged that at the end of the siege, about 12 apartments where the workers of the TCN and some Egbin workers reside were sacked, while the soldiers who were on routine service in the plant allegedly provided them cover.

He blamed the Chief Executive Officer of Egbin Power Plc, Mr. Dallas M. Peavey for poor handling of the crisis.

But the company has denied complicity in the alleged invasion of the estate by thugs

According to him, the drop in generation was caused by a fault that occurred on Friday.

THISDAY gathered that the agitation by the retirees to buy the houses is already in court.

The management in a statement on Sunday said the transformation of the power plant was being threatened by the activities of the illegal occupants of the plant.

The statement added that the management had declared Amber Security Alert on the plant as a proactive step to protect lives and property.
The management also revealed that the illegal occupants who have refused to leave the plant since November 1, 2013 are set to make good their threat to sabotage the plant.

“This unfortunate development portends grave danger that is capable of decimating recent progress in the power sector,” the statement added.
Peavy had in a statement at the weekend, said the continued presence of illegal occupants at the Egbin Power Plc.

Source:http://www.nairausd.com/2015/10/power-generation-drops-by-1100mw-as.html?m=1


Twitter@nairausd

Were is the love that we all preach in the land

TonyeBarcanista:
Catholics over to you...

Seriously this part got my attention

Let him use this opportunity and become great again

To everyone

"THE DEVIL YOU KNOW IS BETTER THAN THE ANGEL YOU DON'T KNOW"

To everyone if didn't understand any political topic just pray for Barki to come up with his analysis.

Trust me the tin go enta.

You know...........

Hmmmm this weed is strong

kettykin:
Why d certain people from certain part of the country hate this woman so much, is she the only person to have bought bullet proof official car with her parastatals allocations

Because say she stop their own avenue

As Oga GEJ is no more, a lot of nonsense don de show.

A question wetin de happen

Does that are dying upon politicians head una see una life

john4reala:
ASA: I want to feature you in my new song
Korredo: Which kind music? high life or hipop because I don't understand your type of music

Crase grt level

McCarlito:
Ask the elders in ur village... Cos one man's food is another man's poison...
It might be welcomed in some traditions; and considered a taboo in other traditions

Nuce answer bro

Exchange Rate for B Pound-Naira,1st Thursday October 2015


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Exchange For Euro To Naira,1st Thursday October 2015


http://www.nairausd.com/2015/10/exchange-for-euro-to-naira1st-thursday.html?m=1

Exchange Rate Of Dollar To Naira,1st Thursday October


http://www.nairausd.com/2015/10/exchange-rate-of-dollar-to-naira1st.html?m=1

Happy Independence Day plus New Month to everyone

Is this really the Saint & Angel name we are waiting for.

Hmmmmmmm l never knew that they are pure

Funny

TonyeBarcanista:
Let's ask the view of Obinoscopy and Lalasticlala

Meaning

TonyeBarcanista:
The difference between us and them is that we recognise a problem and trend that we admit is damaging, but unlike them we should tow the path that will fix things rather than further destroy. That's my point

Love this
Fucking love this
Really fucking love this
Oh! Really fucking love this
Wow oh ! Really fucking love this
You said wow

Dannyset:
This is just affirming the fact that PDP is as corrupt as Saraki. Our legislative arm has been encroached and dented with thieves and rogues. Imagine!
And these same people want to make laws to fight corruption! We aren't ready yet!
OUR SENATORS ARE THIEVES IN SARAKI UNIFORM

Excuse me sir don't you think it will be wise to shun anything that will start problem in any place for a better country.

Beside the op focus is nor about anything party but how our ought to be @55
Thank you for your to understanding

You know............

TonyeBarcanista:
Long Live PDP

Don't start any nonsense,Mr Barki

erunz:
Barca!!!!!! Barca!!!!!! Barca!!!!!!, it is well, long live PDP long live NIGERIA

You can say that again.

Article like is purely welcome from all parties involved in greatness of the Nation.

Nigeria shall be great at any cost

Long love to everyone

Dosinspector:
Buhari said september but he neva said the year,so u can't hold him down

Kai ! My people.you see this one life.
Bad Beletti,enemy of Nigeria progress.

Criticize constructively

obinnajr:
FULLNESS OF TIME

IN A NORMAL COUNTRY, NGOZI OKONJO IWEALA SHOUL BE THE PRESIDENT AND BUHARI THE DRIVER

Kai ! My people see this one life

lalasticlala. Fp