The Nation Newspaper

Category: Money

  • CBN to raise N120.5b treasury bills next week

    CBN to raise N120.5b treasury bills next week

    The Central Bank of Nigeria (CBN) has said it plans to sell N120.52 billion of three-month, six-month and one-year Treasury bills on June 24, the bank said.

    The bank said in a statement it would sell N31.19 billion worth of the three-month paper, N39.33 billion of the six-month bill and N50 billion in the one-year debt next week, using the Dutch auction System.

    At an auction later, the bank is offering N143.64 billion worth of Treasury bills of tenors ranging between three-month and one-year.

    In addition, a total of N80 billion worth of Treasury bonds with maturities between five-year and 20-year are also on offer at the same auction. The results of both auctions will be published today.

  • CITN: FIRS, McKinsey to raise tax revenues by N460b

    CITN: FIRS, McKinsey to raise tax revenues by N460b

    The Federal Inland Revenue Service (FIRS) and McKinsey are working towards increasing tax revenues  and adding N460 billion to Federal Government revenues in the next three years, President, Chartered Institute of Taxation of Nigeria (CITN), Dr. Olateju Somorin, has said.

    Speaking at a budget seminar in Lagos, she said the FIRS and McKinsey initiative is one of the measures being taken to close tax gaps.

    She said Messrs. McKinsey & Co. an international firm was engaged in 2014 to work with the FIRS to strengthen the tax body in tax collection in non-oil sector and provide technical assistance in the implementation of its capacity enhancement programme.

    She said the global growth performance has been weak and there has been volatility in oil prices. Nigeria is part of the global economy and therefore susceptible to development in the rest of the world economy.

    She said the 2015 budget is aimed at boosting the non-oil sectors of the economy and also to raise tax revenues.

    “The introduction of a luxury tax regime buttresses the fact that oil revenue is expected to play a less significant role in 2015 and future years. We hope that government will implement the National Tax Policy and be consistent in its fiscal and monetary policies designed to diversify the economy and increase the country’s tax base,” he said.

    Somorin noted that there are still leakages and incidences of non-remittance of requisite funds to Treasury by some agencies and that is why government issued an unequivocal directive to all revenue agencies to ensure remittances of their obligations to Treasury.

    “In the short term, Government is determined to improve tax revenues not by increasing tax rates but rather by first, strengthening our tax administration. It is worthy of note to observe that Government aims to plug leakages, increase the tax base and improve tax collection efficiency,” she said.

  • CBN misses mobile money target, records N5b turnover

    CBN misses mobile money target, records N5b turnover

    The Central Bank of Nigeria (CBN) has admitted that its mobile money expectations are not met, despite N5 billion annual turnover recorded by operators.

    CBN Director, Banking Supervision, and Chairman, Nigeria Electronic Fraud Forum (NeFF), ‘Dipo Fatokun who disclosed this at the Nigeria Electronic Fraud Forum (NeFF) June meeting held in Lagos at the weekend, said: “It is not correct that we have not made progress in mobile money. It is right that our expectations on mobile money has not fully been met and probably because we were very ambitious in setting the target”.

    He regretted that most of the mobile money transactions are for subscription payment, and remittances, like mobile wallet sending money to account in the bank, or account in the bank sending money to mobile wallet.

    Fatokun said the mobile money space started in Nigeria about two years ago, adding that about 21 Mobile Money Operators have already been licenced. “What we have discovered is that what has led to slow growth is because of lack of agency. For mobile money to be successful, you must have agent. The CBN did report setting up some conditions on agency banking which the mobile money operators are keying into,” he said.

    “We have also released a guideline on super agent structure. We expect that some of the telcos, if not all, will serve as super agents. Two of the telcos already have our approval in principle, to make their agents available for mobile money”.

    Speaking on the NeFF 2014 annual report with theme: “e-Fraud: Fighting the battle, winning the war”, which was also launched at the event, Fatokun said Nigeria needs to put necessary controls to avoid fraud in the e-payment space. “We have articles there to open the eyes of the public on how to stop electronic fraud. We have articles from different stakeholders. It will help you on what you need to avoid if you want your account to be safe,” he said.

    He said the assessment of the e-payment industry is that the value and volume of electronic transactions in e-payment has been in the increase. However, he said the value and volume of fraud, though globally is on the increase, but in Nigeria is on decrease because of so many controls in place.

  • Sterling director urges SMEs on risk

    Sterling director urges SMEs on risk

    The Executive Director, Finance & Strategy, Sterling Bank Plc, Mr. Abubakar Suleiman, has called on operators of Small and Medium Enterprises (SMEs) to ensure proper risk identification, assessment and analysis to minimise revenue by operators.

    Suleiman who spoke at the 10th Annual CEOs Forum organised by LEAP Africa in Lagos, with the theme: Staying Ahead: Maximising Profit And Mitigating Risk also praised the organisers for focusing on the SMEs.

    He urged SME operators to ensure that their risk profile is adequately assessed even as they are required to improve on their reporting standards and the day-to-day management of their organisations.

    The bank director also encouraged economic awareness to fully mitigate risks associated with foreign exchange fluctuations.

    He informed the participants drawn mainly from the SME segment about the bank’s support for SMEs by constantly educating them through workshops and seminars on capacity building training.

    Suleiman further stated that  the bank organised a capacity training programme in 2014 aimed at enhancing the managerial and entrepreneurial qualities of SME operators with a view to building sustainable businesses in view of the critical roles they play in the development of an economy.

    “We are totally focused on the growth of SMEs in the country and we will continue to assist in taking their businesses to another level. The process for transforming SMEs to become bigger players and a key part of national development does not start and end with finance. A huge part of it starts with education,” he said.

  • Group moves to cut capital flight

    Group moves to cut capital flight

    The assembling and manufacturing of scientific instruments, laboratory equipments, chemicals, and furniture would help in reducing capital flights, and push more funds to the economy, President, Scientific Product Association of Nigeria (SPAN), Mr. Julius Famoriyo, has said.

    Speaking during group’s council meeting in Lagos, he said plans are underway to start the assembling of scientific products in the country which would reduce importation of such products and boost economic development.

    He said the association is collaborating with manufacturers of scientific products in Germany and other developed economies to make the products available to local consumers.

    Famoriyo said, such product availability, would be boosted by the upcoming trade exhibition programme holding in Germany from June 15 to 17, under the support of Spectaris, a German high-technology association and the Ministry of Trade in Germany.

    He said this year’s edition of the scientific products fair in Germany, is the biggest in the world, and would provide opportunities for the SPAN members to network, enhance members knowledge local products assembly that meets international standards.

    Famoriyo said: ‘’Through the fair, local marketers of scientific products would meet manufacturers abroad, fashion out ways of developing components, and manufacturing them in the country, which is a major  plus for SPAN’’.

    He said Spectaris, founded in 1881 is based in Berlin and has about 400 members in four branches, namely Photonics and Precision Technologies, Medical technologies, Analytical and Laboratory Technologies and Consumer optics. The SPAN belongs to the Analytical and Laboratory technologies where there are 80 companies.

    On whether government delegation from Nigeria will be at the fair, SPAN Treasurer, Mr Dapo Sonola said the recent change in government will not permit it but they are hoping that the new government would be actively involved in the scientific products industry.

  • UBA launches summer campaign

    United Bank for Africa (UBA) Plc has launched its cards, summer campaign, with the theme #SummerCrush with UBA Cards.  The lender said in a statement that it understands the relevance of the summer season to Nigerians who use their cards abroad, online or in-store and have created a campaign about how the UBA Card can help its holders to achieve their desires this season and beyond.

    “Be it a vacation with the family or an item to purchase, there is a UBA Card story behind every memorable summer experience,” it said.

    UBA cards are accepted in over 200 countries and are protected with second to none technology to ensure the security of all cardholders. Cardholders are encouraged to share their summer desires on UBA’s social media pages to qualify for amazing prizes.

    To encourage card usage, UBA has introduced instant card issuance for international and domestic cards. UBA is the first bank to issue instant international cards in Nigeria. Customers can walk into UBA Business Offices and get their cards in less than five minutes.

  • Total Nigeria seeks new ways to boost growth

    •Shareholders get N3.8b dividends

    Total Nigeria Plc plans to step up its business diversification programme by investing further in solar power business while consolidating the safety and efficiency of the current business.

    Chairman, Total Nigeria Plc, Momar Nguer, told shareholders yesterday at the annual general meeting of the company in Lagos that Total Nigeria is constantly seeking new ways to expand its offerings and the company is currently implementing strategies to ensure that the company remains brand of reference and leading energy solutions provider.

    “We plan to increase the number of our solar powered stations this year by eight additional stations and will be introducing our offer of solar home system. The solar home system is a solar power driven energy solution for homes,” Nguer said.

    He said the company would be seeking to align its business and structures with the dictates of the environment in which it operates and through all these, create sustainable value for all the shareholders.

    Shareholders yesterday approved distribution of additional final dividend of N3.1 billion, bringing the company’s total dividend payout for the 2014 business year to N3.78 billion. The company had interim dividend of N679 million. Shareholders will receive a final dividend per share of N9, in addition to earlier interim dividend per share of N2, bringing total dividend per share to N11.

    Nguer said the 2014 business year was a year in which the company experienced several challenges and difficulties which affected her performance and operating results.

    Total Nigeria’s turnover increased slightly from N238.2 billion in 2013 to N240.6 billion. Profit before tax decreased from N8.1 billion to N5.5 billion. Profit after tax reduced by 17 per cent from N5.3 billion to N4.4 billion.

    He noted that interest expense was N2.6 billion, which was 32 per cent higher than the previous year mainly due to huge interests on borrowing as a result of unpaid sums under the Petroleum Subsidy Fund.

    Managing Director, Total Nigeria, Alexis Vovk, assured of better days ahead, saying that the board would continue to do things solely in the interest of the shareholders.

    Shareholders who spoke at the meeting commended the performance of the company. Shareholders who spoke at the meeting included Sir. Sunny Nwosu, National Coordinator, Independent Shareholders Association of Nigeria (ISAN) and Shehu Mikail, National President, Constance Shareholders Association of Nigeria.

  • New pricing rule: Weak stocks can drop to one kobo

    New pricing rule: Weak stocks can drop to one kobo

    •50 stocks may drop below par value

    At least a quarter of quoted companies may drop to as low as one kobo as the Nigerian capital market regulators approved a new pricing rule that will remove the stopgap that had supported several stocks at their nominal value of 50 kobo.

    The Nigerian Stock Exchange (NSE) yesterday stated that the Securities and Exchange Commission (SEC) has approved the Exchange’s proposal to change the base price for any stock at the stock market from the current par-value based system to a general minimum price level of one kobo.

    According to the amendment to the pricing rule, notwithstanding the par value of a company, the price of every share listed on the Exchange shall be determined by the market, except that no share shall trade below a price floor of one Kobo per unit.

    Par value is the nominal value of a share as stated in the Memorandum of Association of an issuer while the price floor means the amount below which the price of one unit of a share shall not be permitted to trade, and the minimum amount which must be paid for a share in the event of a drop in the unit price of that share.

    The Nation’s check indicated that more than 50 companies, especially in the non-bank financial services subsectors, may be affected by the new pricing rule, which favours market forces to determine share price, irrespective of the nominal value of the company.

    Nearly all the 50 companies have been stagnant at their nominal value for more than a year and are currently on supply, a market euphemism for shares glut and sell pressure. They had been supported at the nominal value by the previous par-value system.

    “Definitely, it is going to affect the market capitalisation because you will have many stocks that will fall below par value. There may be negative market sentiments for such stocks and investors may not really like the idea of their stocks falling as low as one kobo. But looking at it from the global perspective, I think it is good for the market as market forces will now determine the price base for stocks,” Mr. Omololu Ajediran, fund manager, Sterling Capital Markets Limited, said.

    Most insurance companies, which have so far stagnated at 50 kobo, may be affected by the new rule These include African Alliance Insurance, Cornerstone Insurance, Equity Assurance, Great Nigeria Insurance, Guinea Insurance, Consoldiated Hallmark Insurance, Investment and Allied Assurance, International Energy Insurance, Lasaco Assurance, Law Union & Rock Insurance, Linkage Assurance, Prestige Assurance, Regency Alliance Insurance, Sovereign Trust Insurance, Standard Trust Assurance, Standard Alliance Insurance, Unic Insurance, Unity Kapital Assurance and Universal Insurance Company.

    Other companies that may initially be affected by the new rule include UTC Nigeria, Mutual Benefits Assurance, Niger Insurance, Omatek Ventures, Japaul Oil Maritime & Services, Tantalizers, Daar Communication, Secure Electronic Technology, Afromedia, Beco Petroleum, Multiverse, Nigerian Wire and Cable, IPWA, First Aluminium Nigeria, Mass telecommunication Innovation, Chams, Union Diagnostic & Clinical Services, Resort Savings and Loans, Aso Savings and Loans Plc, Multi-Trex Integrated Foods, DN Tyres & Rubber, FTN Cocoa Processors, Rak Unity, Capital Oil, Anino and Afrik Pharmaceuticals.

  • Unitykapital Assurance’s profit drops by 46%

    Unitykapital Assurance’s profit drops by 46%

    •Equities relapse with N62b loss \

    Unitykapital Assurance Plc recorded a 46 per cent drop in net profit in 2014 as the insurance company struggled with slow top-line and non-performing accounts.

    Key extracts of the audited report and accounts of Unitykapital Assurance Plc for the year ended December 31, 2014 released yesterday showed that while gross premium rose marginally by four per cent, pre and post tax profits dropped by 21 per cent and 46 per cent respectively.

    Gross premium inched up to N3.03 billion in 2014 as against N2.90 billion in 2013. Profit before tax dropped from N222.47 million to N175.02 million. Profit after tax also declined from N264.02 million to N141.48 million.

    The audited report was released more than a month after the extended deadline for companies on the Nigerian Stock Exchange (NSE) to submit their audited reports and accounts. The Exchange had said it would sanction all companies that failed to meet the extended deadline.

    Meanwhile, interim report and accounts of Unitykapital for the first quarter ended March 31, 2015 showed considerable growths in pre and post tax profits, while the top-line remained slow with a one per cent growth.

    Gross premium stood at N1.0 billion by first quarter 2015 compared with N990.35 million recorded in comparable period of 2014. Profit before tax rose from N56.88 million to N276.24 million while profit after tax rose from N56.88 million to N217.37 million. The first quarter performance was driven partly by 44 per cent reduction in management expenses and provisions for doubtful accounts.

    Unitykapital’s share price remained unchanged yesterday at the NSE as selling pressure sent the market to its second negative trading session in three days. Benchmark indices indicated average loss of 0.54 per cent, equivalent to about N62 billion. The downtrend pushed the market downward with average year-to-date return of -2.24 per cent.

    The All Share Index (ASI), the composite index that tracks prices of all quoted equities, declined from 34,051.40 points to close at 33,868.72 points. With 36 decliners to 19 advancers, aggregate market value of all quoted equities dropped from N11.571 trillion to N11.509 trillion.

    Market analysts said investors were still searching for policy direction and macroeconomic guidance from the new government.

    Forte Oil topped the losers’ list with a loss of N8.14 to close at N154.86. Total Nigeria followed with a loss of N5.95 to close at N155.05. Nigerian Breweries dropped by N1.50 to close at N148.50. Presco declined by N1.35 to close at N32 while Guaranty Trust Bank dropped by N1.05 to close at N27.55 per share.

    Nestle Nigeria led the contrarian stocks on the gainers’ list with a gain of N30 to close at N880 per share. Beta Glass placed a distant second with a gain of N1.99 to close at N41.96. Seven-Up Bottling Company gained N1.50 to close at N179.50 while Guinness Nigeria added N1 to close at N165 per share.

    Total turnover stood at 252.33 million shares worth N3.36 billion in 4,061 deals. Mansard Insurance was the most active stock with 52.35 million shares valued at N146.98 million in 16 deals.

  • Africa Israel optimistic on Russia

    Israeli real estate developer, Africa Israel Investments moved to a profit in the first quarter on the heels of improvement in all its business activities.

    The company said  it earned 9 million shekels ($2.3 million) in the quarter, compared with a 0.5 million shekel loss a year earlier.

    Africa Israel, controlled by billionaire diamond dealer Lev Leviev, said income from rent and operation of properties was largely flat at 138 million shekels.

    It bounced back from an 851 million shekel loss in the final three months of 2014 due to a revaluation of investment property at its Russian unit, AFI Development.

    Chief executive Avraham Novogrocki noted that AFI made a $6 million profit in the first quarter despite a challenging Russian economy. It made profit of $24 million in the first quarter of 2014.

    “In light of a certain degree of stabilisation of the economic Russian economic situation, in the coming year we will continue operating with cautious optimism in this sector and examine our next steps depending on events,” he said without elaborating.

    Still, Africa Israel said it was able to maintain a high level of visitors – 60,000 a day – to its AFIMall in Moscow while its occupancy rate was 83 percent. At the same time, the company has already sold 627 units in a residential housing project in Russia and during this year, it will start construction of a second phase, it said.

    In Israel, its residential housing unit posted growth of 35 per cent for a profit of 12 million shekels. Profit at construction and infrastructure subsidiary Danya Cebus grew 34 per cent to 19 million shekels and income at its Africa Israel Properties, which builds offices and other commercial buildings, doubled to 49 million shekels.