Top News Update 21/06/2017
1. High interest rates: Senate panel plans talks with FG
2. CBN Moves to Licence Private Asset Management Companies
3. GDP by Expenditure Declined by 2.4% in Q3 2016
4. Nigeria loses N140bn weekly to Apapa gridlock – Dangote
5. FG to create jobs through dry ports – Amaechi
6. 13 banks takeover Etisalat over N541bn debt default
7. BoI to disburse interest-free loan scheme for women
8. Julius Berger, Petrolan Energy Partner to Acquire Oil Fields
9. Akwa Ibom to sue Total over N25bn tax liability
10. Nigeria projects N2.98 billion to check Armyworm invasion
High Interest Rates: Senate Panel Plans Talks With FG
The Senate Committee on Banking, Insurance and Other Financial Institutions may meet with the Federal Government in the ongoing efforts by the legislature to seek a reduction of the current high interest rates being charged by financial institutions in the country. The panel, after meeting with stakeholders in the financial sector of the economy last week, had hinted that it might hold talks with the fiscal authorities when the National Assembly resumes from break. he Senate had summoned the Central Bank of Nigeria, Deposit Money Banks, Nigeria Deposit Insurance Corporation, Manufacturers Association of Nigeria, Chartered Institute of Bankers of Nigeria, and the Nigerian Association of Small and Medium Enterprises to a roundtable held on June 13, 2017.
CBN Moves To Licence Private Asset Management Companies
The Central Bank of Nigeria (CBN) has unveiled to members of the public, a draft document for licencing of Private Asset Management Companies (PAMCs) that are expected to play complementary roles in the management of non-performing loans in the country. The CBN, in the exposure draft for the licencing and regulation of PAMCs in Nigeria, signed by its Director, Financial Policy and Regulation, Mr. Kelvin Amugo, a copy of which was posted on its website, explained that developments in the Nigerian banking industry necessitated the initiative. The draft framework stated that “given the ever evolving developments in the industry, the decline in international commodity prices with its consequent impact on risk assets in the industry, it has become expedient to proactively widen the space for the management of NPLs through the establishment of PAMCs.
GDP By Expenditure Declined By 2.4% In Q3 2016
In real terms, market price gross domestic product (GDP) declined year-on-year by 2.4 per cent in the third quarter of 2016, which was the lowest year on year growth rate in the rebased period (2010 onwards), the National Bureau of Statistics (NBS) said in its Nigerian GDP report (Expenditure and Income Approach). The report stated that in the third quarter, all components recorded year-on-year declined in real terms other than changes National Disposable Income recorded stronger growth than GDP in the third quarter of 2016, both in real and nominal terms. The GDP component to record the lowest growth rate was General Government consumption; attacks on oil pipelines affected oil output, which in turn impacted on government revenues, but weaker economic conditions also led to lower than anticipated tax revenue.
Nigeria Loses N140bn Weekly To Apapa Gridlock – Dangote
The President, Dangote Group, Aliko Dangote, has lauded the decision of the Federal Government to reconstruct the failed Apapa Wharf Road as its grim state serves as both an embarrassment to the country and a huge loss of close to N140bn on a weekly basis. Dangote, who spoke to journalists on Tuesday, said, “The economy loses more than N20bn daily. It (bad state of the roads) affects businesses across the country. All our operations in the hinterland in Ilorin, in Kano are operating at 40 per cent maximum capacity.” Commenting on his resolve to personally get involved in the Apapa Wharf Road reconstruction, he said, “Because it is very embarrassing! We can’t just sit and have a road like that, which it is the heart of trade in the country. More than 60 per cent of our country’s imports and exports come through the Apapa Port and we leave the road unattended to.
FG To Create Jobs Through Dry Ports – Amaechi
The Federal Government has expressed its commitment to establish dry ports or Inland Container Depots in the country to create jobs for unemployed youths and diversify the economy. The Minister of Transportation, Mr Rotimi Amaechi, said this on Tuesday during the final inspection of the Kaduna Inland Dry Port. “We are doing everything possible to create jobs. Whatever we need to do to get the port running, we will do it. “The rail will soon start running before the end of the year, which will be used to deliver goods at the port.
13 Banks Takeover Etisalat Over N541bn Debt Payment Default
Despite the concerted attempts by the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) to save Nigeria’s fourth largest telecommunications services provider, the consortium of banks, led by Access Bank PLC finally made real its threat to take over the management of the Etisalat Nigeria Limited. The takeover which was consummated on June 15, 2017, thus ended months of speculations about the company’s future after it failed to honour the terms of $1.72 syndicated loan facility arranged for it in 2015 by local and foreign financial institutions. The loan which was a foreign backed guaranteed bond was meant to assist Etisalat Nigeria expand its network and refinance an existing $600million facility to help it compete in the nation’s rapidly growing telecoms industry.
BoI To Disburse Interest-Free Loan Scheme For Women
The Bank of Industry (BoI) has unveiled an interest-free loan for women artisans, market women and small holder farmers under the National Women Empowerment Fund (NAWEF) intervention scheme by the Federal Government. According to the bank, NAWEF is an aspect of the Federal Government’s Social Investment (Intervention) Programme which is designed exclusively for women and administered by BoI to issue interest free loans to successful applicants. Speaking at the unveiling of the pilot phase for the disbursement of the Fund in Uyo on Monday, the Minister for Women Affairs and Social Development, Sen. Aisha Jummai Alhassan, stated that eight states, including Akwa Ibom, Adamawa, Borno, Yobe, Osun, Abia, Nasarawa and Jigawa have been selected for the pilot phase where women can access N200 million in loans (starting from N10,000 to N100,000).
Julius Berger, Petrolan Energy Partner To Acquire Oil Fields
As part of efforts to diversify its operations into the oil and gas sector, a leading construction company, Julius Berger Nigeria (JBN) Plc has entered into a strategic partnership and joint investment agreement with Petrolan Energy Limited. In a notification to the Nigerian Stock Exchange (NSE), JBN said the partnership is for the acquisition and development of oil fields in Nigeria. According to the company, the alliance is in line with its strategic goal to diversify into oil and gas sector. The move is seen as timely given the fact that JBN has suffered dwindling fortunes in recent times, leading to a loss of N1.239 billion of the year ended December 31, 2016.
Akwa Ibom To Sue Total Over N25bn Tax Liability
The Akwa Ibom State government is determined to drag Total E&P Nigeria Limited to court over a tax liability of N25bn. A revenue consultant to the state government and Chief Executive Officer of Rom Flex Networks Limited, Mr. Eyo Bassey, said this in Uyo on Tuesday. According to him, the Akwa Ibom State Internal Revenue Service has expressed displeasure over the continued indifference of the French oil conglomerate to clear the alleged tax liability it owes the state. Explaining the situation to our correspondent, Bassey said TEPNG has been found to be serially negligent on its tax liabilities to the state government, noting that tax evasion is a criminal case.
Nigeria Projects N2.98 Billion To Check Armyworm Invasion
There is anxiety among farmers in Northeastern Nigeria as the invasion of the African Armyworm has spread to the area, with the Federal Government saying it needs N2.98 billion to check the pest nationwide. The African Armyworm (Spodoptera exempta) also called nutgrass armyworm, is an African moth, capable of destroying entire crops in a matter of weeks. The outbreak of the caterpillars in several western African nations has raised alarm with the UN Food and Agriculture Organisation. The Nigerian Ministry of Agriculture and Rural Development had in February confirmed the invasion of the pest in 22 states of the country, at a time scientists were trying to unravel the discovery of new caterpillar species on African soil.