Top News Update 16/06/2017
1. CBN Dollar Sales on I&E Forex Window Falls Below 30%
2. Monetary policy too weak to reduce inflation – NECA
3. CBN to mop up N200bn with special TBs as Naira stable at N364/$
4. Inflation drops 16.25% in May –NBS
5. FG hires 7,500 graduates to boost tax revenue
6. MITI, Microsoft to improve Nigeria’s digital service delivery
7. LASG to train 12,000 students in entrepreneurship
8. FG Rules Out Total Deregulation, Oil Falls to Six-week Low
9. FBN Holdings Improves Risk Management to Reduce NPLs
10. Julius Berger Records N1.24bn Loss
CBN Dollar Sales On I&E Forex Window Falls Below 30%
The Central Bank of Nigeria (CBN) dollar sales on the Investors and Exporters’(I&E) foreign exchange (forex) window have reduced to below 30 per cent, the Deputy Managing Director, Stanbic IBTC Bank Plc, Mr. Demola Shogunle, disclosed thursday. Shogunle, who said this while addressing journalists on the outcome of the 333rd Bankers’ Committee meeting in Lagos, said the development on the I &E window was a reflection of the renewed confidence in the Nigerian economy. Speaking yesterday, Shogunle said the Bankers’ Committee acknowledged that the efforts and measures that had been put in place regarding trying to encourage foreign portfolio investors (FPI) were already yielding fruits.
Monetary Policy Too Weak To Reduce Inflation – NECA
The Nigerian Employers’ Consultative Association has said that the monetary policy of the Central Bank of Nigeria is too weak to significantly reduce inflation in the country. The association argued at a press conference in Lagos on Thursday that the high level of inflation in the context of a recession and rising unemployment showed the impact of conflicting policy measures. While recognising the narrowing economic contraction and moderate decline in inflation in the first quarter of the year, the President, NECA, Mr. Larry Ettah, said the continued existence of stagflation called for reduction in the cost of borrowing. “The economy is in recession and we need to stimulate it by bringing down the interest rate,” he said.
CBN To Mop Up N200bn With Special TBs As Naira Stable At N364/$
The Central Bank of Nigeria (CBN) yesterday said that it will issue special treasury bills today to mop up N200 billion from the banking system in order to further rein in inflation. Meanwhile the naira remained stable at N364 per dollar in the parallel market. liquidity Acting Director, Corporate Communication Department, Mr. Isaac Okoroafor disclosed this yesterday. He said: “The CBN plans to mop up a total of N200.322 billion from the Nigerian banking system through a special Open Market Operation (OMO) at the rate of 16 per cent per annum. The decision to mop up liquidity was in reaction to the maturity of N206 billion on Thursday, June 15, 2017.”
Inflation Drops 16.25% In May –NBS
The Federal Government’s claim that Nigeria’s economy may exit recession this year is gradually gaining traction as latest report from the National Bureau of Statistics (NBS) on Thursday show that inflation dropped to 16.25 per cent in May from 17.24 per cent a month ago. This shows that prices of items in the basket of goods selected for compiling the Consumer Price Index for the month made about 1.25 points recovery away from the 15 per cent target of the Economic Recovery and Growth Plan (ERGP).
FG Hires 7,500 Graduates To Boost Tax Revenue
The Federal Government is targeting an increase in the number of taxpayers in the next two years from the current 14 million to 17 million. The Minister of Finance, Mrs. Kemi Adeosun, disclosed this during a media briefing on Thursday in Abuja on a new initiative to drive tax revenue. Specifically, she said the Federal Government was planning to achieve the objective by recruiting 7,500 graduates as community tax liaison officers to raise the level of tax awareness in the country.
MITI, Microsoft To Improve Nigeria’s Digital Service Delivery
The Federal Ministry of Industry, Trade and Investment (MITI) is partnering with Microsoft, through its Africa Open4Business programme, to digitally transform the delivery of services to the investor community in Nigeria and evolve the regulatory and procedural environment governing business incorporation. By harnessing advances in cloud technologies, MITI aims to transform the reach and scope of government-to-investor services in the country, creating an agile and investment-friendly environment.
LASG To Train 12,000 Students In Entrepreneurship
The Lagos State Government says it is set to organise internship for 12,000 students in the final and penultimate years across tertiary institutions in the state. It stated that the training, tagged, ‘Ready. Set. Work’ (RSW), aimed at equipping the students with the right skills to help them become employers of labour and add value to the society. The Special Adviser to Governor Akinwunmi Ambode on Education, Mr. Obafela Bank-Olemoh said the students would be selected from Adeniran Ogunsanya College of Education, Lagos State College of Health Science, Lagos State Polytechnic, Lagos State University, Michael Otedola College of Education, and University of Lagos.
FG Rules Out Total Deregulation, Oil Falls To Six-week Low
The federal government has again stated that it will not completely deregulate Nigeria’s downstream petroleum sector, stressing that the move could increase the prices of petroleum products, especially petrol, which would have negative consequences on the country. Acting President Yemi Osinbajo stated this Thursday in Abuja at the 2017 African Modular Refinery Discussion organised by the Modular Refiners Association of Nigeria (MRAN). His statement came just as crude oil prices dropped to a six-week low due to pressure from high global inventories and doubts about the ability of the Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC producers to implement agreed production cuts.
FBN Holdings Improves Risk Management To Reduce NPLs
The Managing Director of FBN Holdings Plc, Mr. Urum Kalu Eke thursday said the company was working hard to reduce its non-performing loan (NPL) ratio from the 26 per cent recorded in 2016 to below 20 per cent this year. Speaking at the company’s fact behind the figures presentation at the Nigerian Stock Exchange (NSE) in Lagos, Eke said the NPL ratio rose last year due to impairment charges of about N226 billion. According to him, five major accounts constituted the company’s NPL, disclosing that one of the accounts would drop off by June 30, while the second major account would follow. He therefore, expressed high optimism that the five NPLs accounts would be resolved very soon.
Julius Berger Records N1.24bn Loss
For the first time in the history of its operation, Julius Berger Nigeria Plc recorded loss in the financial year ended December 31, 2016, posting a loss before tax of N1.239 billion, compared to a profit before tax of N6.500 billion in the 2015 financial year. Even though it recorded an increase in turnover of N119.813 billion in 2016, compared to N119.243 billion in 2015, the chairman of the company, Mr. Mutui Summonu, said the achievement was not enough to “offset the tremendous and critical challenges” the group continued to face in the light of dwindling economic performance and greater uncertainty in the country.