HENATES

The Nigerian Communications Commission (NCC) has suspended the increase in tariff for online DAT usage that would have taken effect from tomorrow, December 1. In a tweet posted a few minutes ago on Twitter by Tony Ojobo Director Public Affairs, the NCC decided to stay action because of public outcry against the move. However, it tried its best to argue that what was intended was a floor for tariffs to check market manipulation by the big players and create level playing ground for all. Thus it said that the intention was to introduce minimum data usage charge of N0.90/MB and so, make room for even small players to make money. Declared Ojobo: "The price floor is not an increase in price but a regulatory safeguard put in place by the telecommunications regulator to check anti competitive practices by dominant operators" It also said that the proposed floor was no where near the floor of N3.11 ruling in 2014 before it was scrapped altogether. However, the curious thing was...

Nipco Investments ltd has finally agreed with ExxonMobil to pay $301m (about N91805m) for 60% shareholding in Mobil Oil Nigeria PLC. According to an update on the ExxonMobil planned divestment from Mobil Oil Nigeria (MON), signed by MON CEO Mr Adetunji Oyebanji, Nipco has formally contacted Securities and Exchange Commission (SEC Nigeria) for permission to go ahead with the acquisition. Involved are 216,357,157 ordinary shares which at the Nigerian stock exchange closed at N253.89 per share today November 30, as sale of 4556 units took place. Based on this current price, the  60% holding command  market value of about N180bn. By implication, Nipco could be paying up to 67% premium in Naira terms at official N305 to the dollar. For ExxonMobil, the sale is good business all round. Firstly, the money involved should help close corporate finance deficit of $1381m in first nine months of 2016. Secondly Africa still contributes far less than US, Europe and Asia to ExxonMobil do...

Apparently, it is time for good times to roll for Cutix PLC being the local producer of an item hard times may no more encourage importation. Cutix PLC produces cables and wires, amongst other items and half year figures to October indicate good times are beginning to roll on the back of 22.1% increase in wire and cables sales to N1431.7m within the period amidst 17.5% rise in total income. In the three months to October, the growth recorded in wire and cables was even higher at 27.4% implying the potential exists for more in future. After all, by the end of second quarter to October 2015: Cutix reported 9.56% profit margin which closed full year by April 2016 at 9.72% and by October this year, was 13.8%. Agreed, part of the goodies flowed from only 9.37% increase in cost of sale to N1087.7m as core revenue rose by 17.4% to N1624.1m with 88.2% of that coming from cables and wire. Also 35.8% increase in Other income to N8.04m, this time mainly from sale of scrap metal, helped great...

Qatar National Bank (QNB) and some other holders of Ecobank Transnational Incorporatef (ETI) PLC preference shares have decided to convert them to ordinary shares. According to a formal notice to this effect sent to the Nigerian stock exchange by Richard Uku, Head of Corporate Communications, ETI, in all, out of 1,031,515,911 preference shares outstanding, 79.4% or 819,424,548 are to be converted into ordinary shares. QNB alone accepting to convert was a big boost since it held 89.4% or 732,277,056 units of the outstanding preference shares. The preference shares had been held since ETI acquired Oceanic bank in 2011 with the understanding that holders of preference shares issued can  convert into ordinary shares between three and five years after it was issued, if holders so wish. This option period expired in October this year and QNB led those who decided to exercise it. The conversion rate shall be one preference share to 0.76923 ordinary shares as mutually agreed during th...

Today, India and Nigeria have one thing in common: Anti corruption war that has brought their economies to the brink. Nigeria's President Buhari's approach to the war is certainly different from that of India's prime minister Narendra Modi but the harvest of both efforts presently is more or less the same. Just last month Modi had started to fulfil his anti corruption campaign promise by  stopping India's then biggest currency notes, 500 and 1000 rupees, from being legal tender and so, directed all of India to exchange them for other notes including a new 2000 rupees note before December 30. They had the option of exchanging the notes or depositing into their accounts in bank branches. They also could withdraw the new notes through ATMs. It looked a simple directive but Modi had his eyes fixed only on blocking fake notes; monies earned and stashed away corruptly or what many called black money, from circulating further in the system. What he did not see was th...

One of Nigeria's veteran motors and equipment dealers, R T Briscoe PLC is now like a patient that has taken a turn for the worse. According to the unaudited report for nine months to September released recently, in the third quarter of 2015 year, R T Briscoe had lost N19.4 on each N100 income recorded then relatively better results for the first and second quarters turned this into N16.3 loss on each N100 income for the full nine months. Now, the reverse is the case. The nine months to September 2016 indicate that it lost N20.8 on each N100 income after clocking N20.4 in the third quarter alone. Not surprising, in an economy in recession needing less cars and equipment, R T Briscoe recorded drops in revenue from its major areas: motors, industrial equipment, after sales service and property development. Hence core revenue went down by 13.4% within the nine months to N8289.3m. Worse, cost of sale refused to go down that fast. It dropped by only 8.36% to N7163.8m. Worse sti...

May & Baker Nigeria PLC may end financial year 2016 closer to the borderline between profit and loss than it did in 2015. According to the third quarter figures released this week, by December 2015, the company ended up making only N1.86 on each  100 income after clocking N1.14 by the third quarter. Now, says the figures, third quarter 2016 ended with N1.11 profit on each N100 income, and if 2015 trend holds, the year end figure should be lower than the 2015 one. Yet May & Baker Nigeria did its best to dance out of the borderline. True, cost of sale went up by 20.1% to N4239.9m compared to lower 12.5% increase in core revenue to N5944.1m. But May & Baker did drive distribution cost down by 9.16% to N769.2m; keep administration cost growth to  4.27% at N463.5m and earn more than double as other operating income (104.5% up at N18.1m). Then investment income edged up by 6.41% to N16.6m and finance charges dropped by 35.8% to N377.8m. So what went wrong? Nothing o...

The now legendary struggle between paper profit and paper loss  so obvious in Nigerian banking also raged in FCMB PLC within the nine months to September, this year. According to unaudited figures for the period released this week, but for paper profit, FCMB would have landed in loss. However, anticipated loss provision applied the most pressure on the bottom line. FCMB ended September with profit before tax up by 19.4% to N14.18bn but remove N29.5bn income from financial assets revaluation due to the Naira devaluation, and there will be no profit at all. Yet, for fear of customers inability to service debts given the recession, it also increased impairment provision by 404.8% to N34.5bn. Otherwise, the real tale for the period pointed to 1.26% decrease in interest income to N93.2bn accompanied by a higher 9.81% drop in interest expense. Add to this FCMB's success in reducing personnel cost and other operating expenses by 6.81% and 4.99% respectively while keeping adminis...

From November 27 to 29 top executives of African stock exchanges will rob minds during the 20th African Stock. Exchanges Association (ASEA) in Kigali, Rwanda. The theme of the conference is The road to 2030; Making the African capital markets relevant to the real economy. Over 30 speakers and experts from various exchanges and the world Federation of stock exchanges, are billed to present papers during the conference. Among them are Mr Oscar N Onyema, current president of ASEA and CEO Nigerian stock exchange; Honourable Claver Gatete, the Rwandan finance minister; Dr Donald Kaberuka, ex president of African Development Bank and Dr J Ndahiro, the chairman of the Rwanda stock exchange. Others include Ms Siobhan Clearly, Head Research and publication. World federation of exchanges; Mr Tonye Cole, co- founder of the Sahara group; Professor Kingsley Moghalu; Dr Mohammed Onyran, CEO Egyptian stock exchange; Mr Karim Hajji, CEO Casablanca stock exchange; and Ms Nicky Newton-King CEO, Joha...

The governor of the Central Bank of Nigeria Godwin Emefiele, recently told the nation that in September this year, Nigeria was only able to meet about 13.8% or $660m of its $4.8bn demand for foreign exchange. Great. Now we know exactly how wide the gap between demand and supply of forex is in Nigeria. So It is time to focus on how to turn the table one year hence, that is by September 2017. It is not the time to recall how the CBN under Sanusi Sanusi showered bureaux de change with thousands of dollars to round trip. Neither is it the time to even recall that the CBN under Emefiele knew how chronic the supply demand situation was and still proceeded to introduce free trading of forex in Nigeria in place of judicious allocation as all nations resort to in times of war for survival. It is also not the time to recall that Obasanjo's military response to the Niger Delta did not work even though he was an ex general or that it was Umaru YarAdua' political dose that offered some ...

It was indeed a tough first quarter to September for Interlinked Technologies PLC and there is no telling how it will end 2017 year in consequence. According to unaudited figures for the first quarter to September released this week, much as direct cost surprisingly gave less trouble, Interlinked Technologies still ended with loss. Revenue for the period had dropped by 28.5% to N41.9m accompanied by a far higher 34.5% decrease in cost of sale to N31.3m. As a result, despite the more than a quarter drop in revenue, gross profit decreased by only 10.9% to N10.6m. However this could not land the company in profit because there was 33.7% rise in finance cost to N1.31m; administration expense ended 14.9% at N10m and distribution cost edged up 9.93% to N0.83m. In the end, Interlinked Technologies PLC settled for N1.6m loss by September compared to N1.5m profit same time in 2015. This meant that it lost N3.82 on each N100 earned within the period as against N2.56 profit previously...

Still very slow growth in nominal gross domestic product (GDP) has depressed Nigeria's real GDP by 2.24% in third quarter, says National Bureau of Statistics (NBS). According to figures for the quarter released a few hours ago, GDP at current prices grew by 9.23% to N26.6tr compared to N24.3tr by quarter 3 in 2015 which then was itself 3.22% up. But even though this increase in nominal GDP was an improvement too on 2.73% growth recorded in quarter two  and 5.85% in quarter one; it was no where near the inflation rate within the quarter. Hence, real GDP, which is nominal GDP adjusted for inflation to reflect actual services and goods change, decreased by 2.24% to N17.6tr compared to about N18 tr at the same time in 2015. By implication this confirms further Nigeria's present recession with current efforts and fortunes still unable to reverse it. In real terms, the decrease in industrial production continues to widen ending third quarter above 12% down on 2015 correspon...

When the Senate committee on power led by Senator Ben Bruce recently paid an oversight visit to one of the eleven electricity distribution companies, it was told that the company was not making profit. No profit, said the Chairman of the company, hence they have been unable to remit money to government coffers. He reportedly added that profit will only be made when tariff is adjusted upwards. This may be correct but a source told Henates that the company in question makes above N4bn monthly as revenue. Yes it is possible to make loss from such level of income but did the oversight visitors demand to have a peep into the books of the company? Indeed, do the electricity companies publish annual accounts at all or they operate like government electricity companies of old without audited figures annually? If they do, which regulatory body apart from say the Inland revenue, do they file such accounts  for vetting and if need, be prior approval? These questions became necessary beca...

FORTE OIL RAISES N9BN Forte Oil PLC has successfully raised N9bn through a 5 year fixed rate bond to refinance existing debt and fund retail outlet expansion. According to a notice by the Company's head of Investor relations, Doyin Ogun, the bond will be quoted on the Nigerian stock exchange and FMDQ over the counter market till it matures in 2021. According to Doyin, Forte oil group chief executive officer Mr Akin Akinfemiwa said at the completion board meeting that the success of the bond "shows the confidence of the investing public in Forte oil" The bond is the first tranche of an ambitious N50bn bond issuance programme of Forte oil PLC and it is expected to boost the company's liquidity position. ECOBANK TRANSNATIONAL APPOINTS NEW COMPANY SECRETARY Ecobank Transnational PLC, the holding company of Ecobank Nigeria and other subsidiaries across west Africa, has appointed veteran international counsel. Mr Madibinet Cisse as its company secretary. According to...

It looks like quite a busy end to 2016 for Securities and Exchange Commission of Nigeria (SEC Nigeria). This Monday and Tuesday, it shall be holding registration interview for  capital market operators at its zonal office, Lagos. The session is for companies seeking fresh registration; additional sponsored individuals for existing companies and existing companies seeking registration of additional capital market functions. On Wednesday, November 24, will be time for third Capital market committee meeting at Federal Palace hotel Victoria island starting from 10 am. The next day, that is 25th November it will be time for interactive session with the media at Lagos zonal office, 3, Idejo street, Victoria island. Both the media chat and the committee meeting, says SEC Nigeria, shall be strictly by invitation. On December 8, SEC administrative proceedings committee will meet at SEC Headquarters multimedia auditorium, plot 272, Samuel Adesujo Ademulegun street, Central Business d...

Of the about $660.2m foreign exchange bought and allocated by banks in Nigeria by September, almost $28m or about 4.24% went to motorcycle manufacturer. Dag Motorcycle Industries ltd. According to figures released recently for the month by the Central Bank of Nigeria, Dag Motorcycle Ltd got the highest single allocation of $20m from Ecobank and was also allocated an additional $7.94m by Access Bank. In all, 1342 allocations were made by 21 banks within the month as they distributed the $660.2m available. Apart from allocating the highest amount to one beneficiary Ecobank was apparently the most active bank in foreign allocation within the period. In all it was responsible for 197 allocations with four of them among the months top eleven by value and eleven out of its  allocations were above $2m. The month's top eleven allocations were above $10m each with Ecobank accounting for $11.1m allocated to Sabsteel Industries ltd, and above $10m each to Saro Agrosciences ltd and...

Ashaka Cement PLC may after December 19 formally apply to be voluntarily delisted from the Nigerian stock exchange. According to a notice and accompanying explanatory notes by the company, voluntary delisting has become inevitable because more than 80% of the company's issued capital is now block owned by LA Farge Africa PLC. The journey to voluntary delisting, the notice said, started on October 2014 when La  Farge Africa PLC successfully acquired 58.6% of Ashaka Cement's issued capital. Because this made Ashaka Cement automatically a subsidiary of La Farge Africa, it triggered legally mandatory tender offer (MTO) to then existing minority shareholders. This was done in December 2014 and subsequently, La  Farge Africa acquired more holdings increasing its shareholding to 82.46%. However, because this offer was made while insecurity in the North east was near its peak, many shareholders could not take advantage of the MTO. Eventually, says La Farge Africa, a voluntary te...

Although the Nigerian compulsory pension scheme continues to grow in terms of number of retirement savings accounts, the real challenge of funding pensioners starts ten years hence. According to statistics released by the National Bureau of Statistics (NBS),  that is when the bulk of today's savers begin to grow old and retire. The number of retirement savings accounts at 7240196 grew by 1.59% in the third quarter on second quarter level and by a healthier 7.34% and 16.6% on 2015 and 2014 third quarters respectively. Indeed, the growth in savings accounts has been continuous quarterly since 2014 from the available figures. However, the bulk of the current savers are aged between 30 and 59 years meaning that the scheme may not have much challenge funding pensioners until these people grow old. As per the figures, they make up 83.9% of the current retirement savers as 39% of total savers were aged 30 to 39; 27.4% were aged 40 to 49 and 17.5% were within the 50 to 59 bracket...

Almost two years into Buhari presidency, Nigeria spent about N1.24trillion between May and September importing petroleum products, according to statistics released by National Bureau of Statistics (NBS) yesterday. This is in spite of the obvious problems petroleum products importation forced on Nigeria requiring urgent attention through local refinery revamping and/or establishment of new refineries. The amount was spent importing about 10171.8m litres of petrol, diesel and kerosine within the five months. Of this volume, petrol made up 77.2% or 7853m litres while diesel was 20.7% or 2110.3m litres and kerosine made up 2.05% or 208.5m litres. In terms of value, the percentage share distribution changed only a little with petrol accounting for 77.4% or N958288.7m; followed by diesel with 20.6% or N254550m while kerosine accounted for 2.06% or N25463.3m. For petrol, highest volume and value of import was in May when 2026.1m litres were imported at landing cost of N249876.2m....

It looks like Nigeria imports more litres of petrol than it consumes monthly. According to latest petrol importation figures released by the National Bureau of Statistics. (NBS), petrol importation volume has been going down since May with the exception of July. In May 2026.1m litres of petrol was imported at landing cost of N249876.2m. This dropped to 1455.2m litres in June at N179641.8m before rising to 1535.4litres in July at N174517.2m. The monthly drop then resumed to  1501.2m litres by August at N185514.4m and finally 1335.2m litres by last September at N168739m The curious thing though was that the same NBS also released consumption data earlier that put average national daily petrol consumption at 47.8m litres in May, 51.5m by June, 41.2m in July. 47.1m in August and 44.4m litres by September. Based on this, May consumption must have come to about 1481.8m litres that is 544.3m litres less than the imported figure. Now where did that go to within the month? Strategic...

Pharma-Deko PLC recorded a rather curious 34.2% drop in core revenue to N744m within the nine months to September this year. Curious because, the company explained that it was due mainly to nonavailability of products to sell because it's factory and extension were undergoing overhauling. Yet, figures released for the period show that inventories increased by 30.9% within the period to N437.8m driven partly by 48.5% rise in finished goods to N163.6m. Due to higher prices perhaps and not increased stock? Any how, it turned out to be too much for Pharma-Deko to handle profitably as cost of sale went down by lower 26.6% to N393.6m and overhead costs virtually refused to ease as much dropping by only 5.26% to N470.1m. Indeed, the overhead decrease  was due to 28.4% drop in selling and distribution costs to N136.3m as administration expenses rose to N333.8m from N305.8m Hence, as income from non core sources tumbled by 81.2% to N9.44m, Pharma-Deko reaped N110.3m loss within the per...

The Central Bank of Nigeria (CBN) yesterday, through a post on its website signed by Acting director of corporate communications. Isaac Okorafor put its reputation on the line by saying authoritatively that Heritage Bank PLC is not in distress. According to the notice, this was in response to allegations in the social media that the Bank was in trouble having being run aground by feuding directors. It declared " We wish to state that Heritage Bank is not in distress and as such its depositors should go about their transactions without fear" It added: "For the avoidance of doubt, we wish to further state that no Nigerian bank is in distress" Hence, it said " The CBN wishes to reiterate that the banking system remains resilient enough to weather the current economic storm" Of course, this is reassuring but, is that all? The statement says nothing about the rather weighty allegations in the Sahara reports story published easier about reported goings on a...

Various newspapers had it on front page that famine looms in Nigeria from January next year because grains were being massively exported out of the country. They all were quoting the Senior Special Adviser to President Buhari on media and publicity Mallam Garba Shehu who reportedly raised the alarm during an interview with Pyramid Radio, Kano. The Vanguard version of the story says Mallam Shehu said the alarm became necessary after the federal ministry of agriculture drew the attention of the president to it. According to the version, mallam Shehu said about 500 truckloads of grains leave the country every week bound outside especially for export to neighbouring countries, and further away ones like Libya, Algeria and Brazil. He reportedly added: " Huge demand for our grains in the global market is creating an excellent environment for the mindless export of Nigerian grains across our borders and unless this is curtailed, Nigerian markets will be bereft of food by January ...

Despite recent decision of the Nigerian government to cap the sale price of kerosine at N150 per litre, the average price rose by 1.40% in October almost hitting twice the cap. According to market statistics for the month released this week by the National Bureau of Statistics, national average price for kerosine in October was N292.73 per litre, up 1.4% on N288.68 in September. What's more this increase comes after two months consecutive decrease from a high of N310.29 per litre in July to N298.19 in August (down 3.90%) before dropping by another 3.19% to September average. As usual, price differential between the states of the federation remains substantial enough for money to be made just by buying from low price states to sell in high ones. By October, Sokoto state had the highest average price per litre (N375) followed by Taraba with N370; Yobe N353; Borno N347.22; IMO N340 and Enugu with N335.33. Other States with average price per litre more than twice the national...

Inflation rate in Nigeria at 18.3% year on year by October seems to be galloping once again after a mild growth to 17.9% in September. According to latest consumer price index (CPI) by the National Bureau of Statistics (NBS), month on month the increase was 0.83%, also ahead of September's 0.81%. The pressure came more from urban price growth which by October recorded 19.9% year on year compared to 19.5% in September. This contrasts with rural rate of 16.9% as against 16.4% year on year by September. From the latest figures, virtually all necessities now post prices above twice the base figures recorded in November 2009. The highest by October was housing, water and electricity index which was 232.3 compared to 100 for base November 2009. It was followed by Food index with 213.9; food and nonalcoholics 212.9; imported food 210.5 thus being the only ones above the all items index for October 209.7. However, also twice November 2009 level were all items less farm produc...

It is not unlikely that when on November 8, Indian Prime Minister Narendra Mordi decided to take on corruption by declaring 500 and 1000 notes of the Indian currency invalid from November 10, he did not anticipate that it will amount to a total shut down of the economy. Since then, daily long queues at banks and working ATMs across the country have been become a daily affair. This is because the deadline is December 30 for the exchange these notes for still valid ones or newly introduced 2000 rupee notes. Home Indians are even faring better. Those living outside India have no windows outside the country's shore to even queue up to exchange the demonetised notes before the deadline. So, many non resident Indians and even none Indians are presently stuck with the notes that in less than two months will be absolutely worthless. Yet, even now they can not be used to buy anything; only exchange them or pay into account in India. So if you are one of those so stuck with these rupee d...

The Central Bank of Nigeria (CBN) has released guidelines for consumer protection in Nigeria's world of finance. According to CBN's director , Consumer protection department, U. A Dutse, it is fashioned after the nine protection principles developed by the Organisation for Economic Cooperation and Development ( OECD), as complimented by the World Bank. It covers legal and regulatory framework, responsible business conduct, disclosure and transparency, consumer financial education and fair treatment. It also covers protection of consumer assets and privacy, complaints handling and redress, competition, enforcement and consumer rights and responsibilities. It is intended to guide all institutions under the regulation of the CBN on consumer protection practices. Amongst its objectives are to protect consumer assets, ensure timely complaints handling, empower informed decision making by consumers and promote professionalism and ethics. It covers commercial and merchant banks,...

It is said that grass does not grow on a busy road even if is unconstructed. Just a footpath perhaps. But leave a tarred road unused for a long while, grass soon over grows it and you can only reclaim by doing expensive weeding. This seems like the situation the Central Bank of Nigeria and securities now find themselves dealing with in regards to the operations of the bureau de change operators. Latest report say the securities agencies have been raiding offices of BDCs to ensure they sell foreign exchange within contractual limits. Well this night deter many for a while especially the foot soldiers at roadsides shouting dollar, dollar etc. One because they get their supply from official sources especially from BDCs. But it will only amount to clearing a dirty road of spreading grass and hoping that it will remain without grass for long. It won't because in this case, the problem is that there is not enough supply of forex yet and two, the need to survive (may be better seen...

CONTINENTAL RE-INSURANCE NEW DIRECTORS Nigeria's pioneer and veteran actuary, Chief Ajibola Ogunshola and Mr Emmanuel Brulé have been appointed to the board of directors of Continental Re insurance PLC from November 8, this year According to Mrs Abimbola Falana, company secretary, they were appointed to represent C-Re Holdings ltd replacing Mrs Nadia Alaoui Fettah and Mr Merrick Wayne Oeschger. Ogunshola holds Bsc Mathematics from the University of Ibadan and was the first black man to become fellow of the UK Institute of Actuaries in 1973. He also represented the institute in Nigeria from 1973 to 1996. He started his career in 1967 as trainee actuary with Eaglestar Insurance company and joined NICON in 1972 as first head of life division. In 1974 he joined Niger Insurance as chief executive officer till 1985 as the first Nigerian to hold the position. From 1986 to 2004, he was chairman and managing consultant of Ajibola Ogunshola & co before becoming chairman of...

The regime of merchant service charge per transaction through the point of sale terminal (POS) fixed by the Central Bank of Nigeria presently is to stop by May next year. According to a circular signed by Dipo Fatokun, Director, banking and payments of the CBN, from then merchants and acquirers are expected to negotiate the rate per transaction subject to maximum limits. Currently, the fee charged for any POS transaction is 1.2% subject to maximum of N2000 except in the case of payment for travel and entertainment. This fixed fee was then shared  30% to the card issuer, 32.5% to the merchant acquirer; 25% to the terminal owner; 5% to the local switch and 7.5% to the Payment Terminal services provider (PTSP). From May this will change and interchange fee of 0.40% for general usage to the Issuer to a maximum of N1300 per transaction and 0.85% with maximum of N3200 in the case of travels and entertainment usage will be paid. In the case of other fees, PTSP will get 0.15% with ma...

SCOA NIGERIA PLC: COUNTING LOSSES. Since the year SCOA Nigeria PLC has been putting up gallant fight to stay in control of its fortune but, alas, nothing doing, says the third quarter figures released recently. According to the figures, sought desperately for profit and better liquidity position but, things still got worse by September as it crashed into N963m loss compared to N421.3m previously and working capital closed N1262.2m negative. Yet it did try its very best especially in cost control. There was a 20.7% drop in core revenue to N3022.7m but this was mitigated somehow with higher 24.1% drop in direct cost deployed to generate it to N2176.5m. Then, administration cost was driven down by 12% to N721m but 18.1% drop in income from non-core sources to N20.8m did not help matters. Finally, liquidity pressure forced SCOA Nigeria to seek N6410.7m new financial liability thus almost doubling its finance cost to N1109m, up 94.3%. One clear wrong step in terms of liquidity...

The Central Bank of Nigeria has finally released the full list of licensed international money transfer operators (IMTOs) in Nigeria to avoid patronage of quacks According to a press release signed by the Acting director of Corporate Communications, Isaac Okorafor, dated November 8, the IMTOs were 35 in number and the names were listed in alphabetical order. The list includes two well known names even before the introduction of the inter bank foreign exchange market in June: Moneygram and Western Union. It also includes some local names involved in similar services hitherto eTransact, pagatech, cashpot, and First transfer amongst others. The full list also includes Aftab Currency Exchange, AWS Malta, Caperemit UK, Centrexcard; Colony Capital, CP Express, Daytona Capital Management; and DT & T Corporation. Others are FIEM Group DBA ping express; First Apple, Foren Money, Funtech Global Communications, GDM Transfer, Homesend , IDI payment services, Nouveau mobile, Refitok Intern...

RAK UNITY PETROLEUM'S NEW DIRECTOR A new director has been appointed to the board of directors of Rak Unity Petroleum PLC in the person of Mr Said Modibbo Ahmed. According to formal notice from the company, he replaces Mallam Muhammad Lawan Buba who resigned from the board recently. The appointment was approved during board meeting held on October 27, this year. Ahmed comes aboard with very wide experience especially in the public sector. He holds a BA in administration from Ahmadu Bello University Zaria and a masters in public and international affairs from University of Pittsburgh, USA. He started his career in 1978 as Assistant lecturer at Ahmadu Bello University, then he moved to the University of Maiduguri as academic secretary before serving Gongola state government in various capacities including as permanent secretary, of the Civil service commission and Director General Staff development institute. He later joined the NNPC group in 1980 as Executive directo...

From December 28 2016 the agreement that allows Deutsche Bank to act as depository for the sale of FBN Holdings PLC ( hitherto known as First Bank of Nigeria PLC) shares abroad, will cease to exist. According to FBN Holdings PLC company secretary, Tijani Borodo esq, in a notice to the Nigerian stock exchange, the global depository receipt (GDR) is being terminated at the instance of Deutsche Bank through relevant notice to that effect. The agreement was between Deutsche Bank Trust Company Americas and FBN Holdings PLC. From that date, added Borodo "if any GDRs are outstanding after the termination date, Deutsche Bank shall, as soon as reasonably practicable, sell the underlying ordinary shares and deliver the net proceeds of such sale to holders of GDR.. not previously surrendered". GDRs are international certificates issued by international banks acting as depository banks for the purchase of shares of foreign companies. It allows such shares to be traded locally a...

Things are looking up for Nigeria once again as foreign capital importation rose by 74.8% to $1822.11m by the third quarter of this year, according to latest figures from the National Bureau of Statistics (NBS). This represents second quarterly increase after it rose by 46.6% to $1042.17m from quarter one's lowest level of $710.97m in flow since 2014 quarter two. The new trend seems sustainable because it was driven by 172.8% rise in portfolio investment due to renewed interest in money markets instruments and bonds and fair growth too in foreign direct investment. Sustainable because both seem to be in response to incentives embedded in monetary policy of the central bank of Nigeria. Inflow into bond came to $369m within third quarter compared to zero in quarter two while that into money market instruments rose by 508.7% to $350m. As for foreign direct investment, it was third quarterly increase in a row after the second lowest $123.15m since 2014 in quarter four 2015. A...

From January 1, 2017 new rules by the Nigerian stock exchange for the filing of accounts and treatment of default filing will come into effect. Currently, from an exposure on its website since October, the Securities and Exchange Commission of Nigeria (SEC Nigeria) is proposing new rule for capital market operators on three tiered know your customers framework and amendments to sundry rules on corporate account filing, and proceeds from new issue of financial instruments. The new know your customer rule put limits to customers accounts in three grades: High, medium and low risk accounts with relevant customers identification requirements with an eye fixed more on checking money laundering and corruptive tendencies. The filing amendment opens a window for fast tracking filing of annual reports apparently to avoid filing fourth quarter figures as well. It also provides penalty of N10m for any failure to fast track as willingly indicated each year and N50,000 each day such failure ...

The Court of Appeal, Lagos judicial division, has finally declared as illegal and unconstitutional the restriction on movement of persons during environmental Saturdays in Lagos. Delivering judgement yesterday, November 4, 2016 on the suit filed by Faith Okafor against the Lagos state attorney general challenging the legality of the restriction, the Court held that the order by the governor of Lagos state was unlawful and contravenes the Nigerian constitution. In effect, until this ruling is overturned at the Supreme Court, it is illegal to restrict the movement of persons in Lagos state during the monthly environmental Saturdays between 7am and 10am. The ruling also lays down the law that could also affect other States in the federation of Nigeria where by fiat or directive, government had restricted movement of persons within the same hours on particular days to ensure stay at home to actively participate in cleaning of the environment. Many states in the federation adopted last ...

In spite of the tough times Nigerians continue to patronise e-payment channels increasingly but more through ATMs in terms of volume. According to the e-payment channels statistics for the third quarter to September released this week by the National Bureau of statistics (NBS), there was 17.8% growth in volume of transactions to 23,888,9940 within the period compared to quarter two. This compares favourably with only 8.59% growth recorded in volume of transactions in the second quarter. In terms of value though, the quarterly growth rates were farther apart as third quarter value came to N18,156,886m, up 23.5% compared to 11.1% growth in the second quarter. ATMs remain the dominant channel patronised but only in terms of volume, not value of transactions. Within the third quarter, ATMs accounted for 65.8% of volume, down slightly on 67.2% in quarter two and 66.8% in quarter one. In value terms, however, ATMs accounted for only 6.87% of total transactions in third quarter represen...