High Exchange Rate, Inflation Twin Evils Afflicting Capital Market
Mr. Onyenwechukwu Patrick Ezeagu is the Chairman, Association of Stockbroking Houses of Nigeria (ASHON) and also the Managing Director and Chief Executive Officer of Solid Rock Securities and Investment Plc. In this interview with Daily Sun, he speaks about how high exchange rate, inflation and other issues are affecting the nation’s capital market and general economy. Excerpts: Effects of high exchange rate and inflation on stock market. High exchange rate and inflation are the twin evils killing the Nigerian capital market and indeed, every economic endeavour. For a start, these two variables introduce a high level of uncertainty to the price structures of the market. Secondly, they stifle savings which is the fulcrum of investment.
Local Content: FG Demands Update On IOCs Compliance Status
The Federal Government has mandated the Nigerian Content Development and Monitoring Board (NCDMB) to comply with the Freedom of Information Act (FOI Act) 2011 by making available for public consumption, information regarding the level of local content law compliance by International Oil Companies (IOCs). A letter from the Minister of Justice and Attorney General of the Federation, Mr. Abubakar Malami, with reference number; MJ/FOI/059/I/70, dated 28th March, 2017, compelled NCDMB to make the information available to Borderless Limited, a non-profit organization under the FOI Act 2011.
Crude oil threatens budget, ERGP and Nigeria’s future
IT was not only PUNCH which carried the story on that day. The GUARDIAN also ran a story on what should have been headlines news of the day. It was instead tucked into the middle pages by the few papers which saw its significance. That was a pity because no news item deserved more prominence; not even the self-induced and mutually destructive feud between the Presidency and lawmakers. Legend has it that Emperor Nero, AD 37-68, fiddled while Rome was burning under the attack of the barbarians.
Stanbic IBTC Seeks Growth Of Contributory Pension Scheme
The Chief Executive, Stanbic IBTC Pension Managers Limited, Eric Fajemisin, said employers remain the pivot, upon which the sustainability of the pension scheme rests, and as such, it is imperative to engage them on their key roles and they impact the scheme. Speaking at its first 2017 edition of Employers’ Forum in Edo State, Fajemisin noted that, ‘employers must show commitment in terms of ensuring their employees had retirement savings accounts and funding of those accounts through regular remittances.
BDCs Boss Urges Better Security At Nation’s Gateways To Check Illegal Cash Evacuation
The Association of Bureau De Change Operators of Nigeria (ABCON) has urged the Federal Government to increase security surveillance at the nation’s airports and land borders to checkmate illegal foreign cash evacuation. The President of the association, Alhaji Aminu Gwadabe, said at the weekend in Asaba that this has become necessary because the naira was currently a means of exchange in about 15 countries in Africa.
FG, Shell, Agip To Sign FID For $13.5bn Zabazaba Deepwater Project In Q2 2017
The federal government, Shell and the Nigerian Agip Exploration Limited (NAE) will sign the Final Investment Decision (FID) for the $13.5 billion Zabazaba Deepwater project located in Oil Prospecting Lease (OPL) 245 in the second quarter of this year. This indication emerged as NAE begins this April to receive commercial proposals for the development of the multi-billion Deepwater oil field, which was planned a few years ago, but later suspended after cost projections made the project unviable.
External Reserves Down By $67m As CBN Settles Matured Obligations
The latest external reserves position showed it fell by $67 million compared with the $30.231 billion it was two weeks ago. As a result of the central bank’s decision to enhance FX liquidity in the market last month, which led to significant appreciation in the value of the naira, the CBN had adjusted its FX policy.
Customers Kick As Multichoice, NBC Increase Products’ Prices
Effective May 1, millions of Digital Satellite Television (DStv) subscribers in the country would pay more as the owners, Multichoice, effects a price increase across all packages. The PayTv giant yesterday sent out text messages informing its teeming subscribers to expect price hike in 30 days time. A specific message to Premium bouquet customers reads: “Dear DStv customer, due to a price adjustment, your premium package fee has changed from N13, 980 to N14, 700 effective May 1, 2017.”
Arik Accuses AMCON Of Cannibalising Aircraft
The Asset Management Corporation of Nigeria (AMCON) has been accused of cannibalising Arik Air aircraft and using the parts to repair the fleet of Aero Contractors. Sources from the airline disclosed that an engine of a Bombardier Dash 8, Q400, was taken away from Arik aircraft with registration, 5N-BKV, and given to Aero to fix in the same aircraft type, which broke down recently in Kaduna.
NIPCO Completes N90b Acquisition Of Stake In Mobil Nigeria
Following necessary regulatory approvals, NIPCO Investments Limited, a wholly owned subsidiary of NIPCO Plc, in a trade executed on the floor of the Nigerian Stock Exchange (NSE) at the weekend, completed the acquisition of ExxonMobil Oil Corporation’s stake in Mobil Oil Nigeria Plc, in a deal worth N90 billion. CORDROS Securities Limited acted as the execution stockbroker to both ExxonMobil and NIPCO for the transaction.According to NIPCO, its acquisition of the majority stake in Mobil is a significant breakthrough that will bolster investors’ confidence and appetite in the sector, following the deregulation of the Federal Government of Nigeria in the downstream petroleum industry.