Economic and Business News
For the week ending, Friday 24th June 2016
Liquidity pressure: Banks borrow N930bn from CBN
LAGOS - Liquidity pressure heightened in the banking industry, last week, forcing banks' borrowings from Central Bank of Nigeria's Standing Lending Facility, SLF, to rise 230.61 per cent to N929.52 billion.
Conversely, the Standing Deposit Facility, SDF, has equally declined 61.76 per cent to N227.44 billion during the week, indicating that banks are also withdrawing heavily from their deposits in CBN as the liquidity pressure bites harder.
Vanguard. 27 June 2016
IGR: 36 states generate N682bn, 15 appear to be going bankrupt • Lagos generates more IGR than 32 states combined
AN investigation by the Economic Confidential has shown that fifteen states may go bankrupt, as their Internally Generated Revenues (IGR) in 2015 were far below 10 per cent of their Federation Account Allocations (FAA) in one year from June 2015 to May 2016.
The report further indicates that the IGR of Lagos State of N268bn is higher than that of 32 states combined together excluding Rivers, Delta and Ogun whose IGRs are very impressive. The 32 other states merely generated a total of N257 billion in 2015.
Nigerian Tribune. 27 June 2016
35 states apply for N510bn FG guaranteed loan, Adeosun clarifies
Minister of Finance, Mrs Kemi Adeosun, has clarified that the proposed loan guaranteed by the Federal Government to states is a total of N510 billion and not N90 billion as earlier reported.
Adeosun, who spoke during a television interview programme on Monday, also disclosed that N109 billion had already been released as part of the N350 billion first quarter capital vote.
Nigerian Tribune. 28 June 2016
FG directs immediate re-opening of NERFUND
The Federal Government on Tuesday directed the immediate re-opening of the National Economic Reconstruction Fund almost one week after it was shut.
The Minister of Finance, Mrs Kemi Adeosun, gave the directive in a statement issued by the Director of information in the ministry, Mr Salisu Dambata.
The Punch. 28 June 2016
FG releases N109bn to reflate economy
Minister of Finance, Mrs. Kemi Adeosun, yesterday disclosed that the Federal Government has released a total of N109 billion out of the N350 billion earmarked to reflate the economy.
Speaking in a ChannelsTelevision programme, 'Sunrise', the Minister said that the remaining funds are ready but facing procedural delays arising from the required public procurement processes. .
Daily Sun. 28 June 2016
No benefit in naira devaluation, Buhari insists
President Muhammadu Buhari on Monday said he did not see any benefit that the country could derive from the devaluation of the naira.
This is despite the implementation of the flexible exchange rate policy, which has somehow led to the devaluation of the nation's currency. .
Punch. 28 June 2016
CBN launches naira settlement system
The Central Bank of Nigeria (CBN) has formally flagged off the Naira Settlement Foreign Exchange Market on Monday, June 27, 2016 in Lagos.
This is even as naira-dollar exchange rate on Monday ended at N282 to the dollar, slightly weaker than Friday's close of N281 after the central bank's intervention.
Nigerian Tribune. 28 June 2016
High diesel price: FG considers biofuel alternative for farmers
ABUJA-FOLLOWING the high cost of diesel, Federal Government is considering bio-diesel as an alternative source of fuel for farmers to enhance food production and supply.
The Minister of Agriculture and Rural Development, Chief Audu Ogbe, who disclosed this in his office in Abuja, expressed concern over the persistent hardship farmers face in accessing diesel, which now sells for between N200 and N210 per litre. .
Vanguard. 29 June 2016
Cement, rice processing funds, others hit N44.6bn with BoI
The managed funds under the portfolio of the Bank of Industry (BOI) has hit N44.6 billion as at the end of 2015 financial year.
Acting Managing Director of the bank, Mr. Waheed Olagunju stated that the bank is strengthening its collaboration with its foreign and domestic partners including community-based organizations to deepen the bank's credit delivery process and financial inclusion initiatives. .
Vanguard. 29 June 2016
Naira depreciation: CBN resumes dollar sales to BDCs
Lagos- THE Central Bank of Nigeria, CBN, is set to resume dollar sales to Bureaux de Change, BDCs, in a bid to arrest the continued depreciation of the Naira in the parallel foreign exchange market as well as reduce opportunity for round-tripping.
Vanguard investigations revealed that the CBN, yesterday, held a meeting with the leadership of Association of Bureau de Change Operators of Nigeria, ABCON, the umbrella body of BDCs in the country.
. Vanguard. 29 June 2016
Nigeria ranks low in new World Bank’s trade logistics performance index
Nigeria has been categorised among the lowest ranking countries with 2.63 score in the latest trade logistic performance index ranking released by the World Bank.
The nation was ranked the 90th position among the 160 countries watched while Germany is the top performer for the third time and Syria ranked lowest.
Guardian. 30 June 2016
India moves to boost trade in Nigeria, opens industrial association
ABUJA – In its bid aimed at boosting its trade relations with Nigeria,India has opened its oldest industrial associations in Nigeria.
The Indian trade organisation,otherwise known as ASSOCHAM India,with over 450,000 members and branches in 10 countries in Africa,was formally launched yesterday, in Abuja.
Vanguard. 30 June 2016
Scarcity of forex forces 2 Nigerian airlines out of Lagos/Accra route
The ongoing scarcity of foreign exchange which had hitherto affected the operations of many foreign airlines in the country has started taking its toll on the domestic airlines.
While two of the mega carriers, Iberia and United Airlines had already pulled out of the country with other still threatening to follow suit, two of the domestic airlines in Nigeria have also withdrawn their operations on the Lagos/Accra route..
Nigerian Tribune. 30 June 2016
CBN sets aside N2.5bn for business-inclined corpers
The Central Bank of Nigeria said it has set aside N2.5bn for members of the National Youth Service Corps with good business ideas to actualise their dreams.
The N2.5bn, which was set from the N220bn Micro, Small and Medium Enterprises Development Fund, the bank said, would be disbursed to the corps members under the Youth Entrepreneurship Development Programme.
Punch. 01 July 2016
NSE market capitalisation down by N101bn
Lagos – Market capitalisation at the Nigerian Stock Exchange (NSE) on Friday dipped further by N101 billion, amid price loses by some highly capitalised stocks.
The market capitalisation which opened at N10.165 trillion, shed N101 billion or 0.99 per cent to close at N10.064 trillion.
Also, the All-Share Index lost 292.39 points or 0.99 per cent to close at 29,305.40 compared with 29,597.79 posted on Thursday.
Vanguard. 01 July 2016
Lagos-Calabar railway project: FG, CCECC sign $11.12bn MoU
Abuja – The Federal Government and China Civil Engineering Construction Corporation (CCECC) have signed a Memorandum of Understanding (MoU) for the execution of the 11.12 billion-dollar Lagos-Calabar railway project.
The Minister of Transportation, Mr Rotimi Amaechi, signed the agreement on behalf of the government, while the President of CCECC, Cao Baogang, signed for the company in Abuja on Friday..
Vanguard. 01 July 2016
Other Economic and Business Indicators
|Monetary Policy Rate||12%|
|Prime Lending Rate||16.13%|
|External Reserve||USD 26,363,435,289|
|Exchange Rate (Inter-Bank)||USD: 281.75
|Exchange Rate (Parallel Market)||USD: 351
|Treasury Bill Rate (91 Days)||8.04%|
|Currency in Circulation (Million Naira)||1,746,717.85|
|External Debt - FGN + States (USD million)||10,718.43 (Dec 31, 2015)|
|Local Debt - FGN only (NGN million)||8,836,995.86 (Dec 31, 2015)|
|Bank Credit to to Private Sector||19,048,959.07|
|Demand Deposits at Banks||7,998,200.30|
|Nigeria's Merchandise Trade||2,723.9billion (Quarter 1, 2016)|
|Crude Oil||$45.42 (OPEC Daily Basket, July 1 2016)|
Source: CBN, NBS and DMO
Compiled by: Research Department, NACCIMA
4 July, 2016