Category: Money

The Naira yesterday plunged to a new low against the dollar on the unofficial market, trading at N850/$ as dollar scarcity persists.

The naira is however stable at the official market, where it exchanges at N439.88/$, data from the Central Bank of Nigeria (CBN) website shows.

The local currency, which closed last week at N772/$ at the parallel market,  has come under intense pressure with more depositors converting cash to dollar to protect their assets.

In emailed note to investors, Forex Dealer with AZA Finance,  kenga Kalu, said Nigerians are rushing to buy dollars after the CBN announced plans to redesign high value Naira notes by mid-December.

“The spread between the official and unofficial rates is now more than 88 per cent, the largest ever gap, according to Bloomberg. The note redesign is intended to mop up excess funds, reduce counterfeit notes and hamper ransom payments from terrorists and kidnappers,” Kalu said.

During the announcement,  CBN Governor, Godwin Emefiele, said old bank notes- N200, N500 and N1,000 denominations- still in circulation by the end of January next year will be void.

The CBN expressed concern about the amount of currency in circulation outside of the banking system, reducing the efficacy of its policy levers.

“With dollar demand continuing to outpace supply, and with no more central bank support in the parallel market, we expect the Naira to lose further ground in the near term,” he said.

The CBN said it will  be mopping up N3.23 trillion from circulation to tackle rising inflation.

He said that of the N3.23 trillion cash in circulation as at September 2022, N2.73 trillion is outside the vault of banks.

Emefiele said both the funds within and outside the banking system will be mopped up from today till January 31, 2023 to the CBN’s vault to control rising inflation

According to him,  currency management is a key function of the Central Bank of Nigeria, as enshrined in Section 2 (b) of the CBN Act 2007.

Therefore, the integrity of a local legal tender, the efficiency of its supply, as well as its efficacy in the conduct of monetary policy are some of the hallmarks of a great Central Bank.

The Federal Government is taking steps to  harness $12 trillion revenue from disruptive technologies expected to drive the fourth industrial revolution (4IR).

Speaking on the need for industry leaders and stakeholders to explore the  utilisation of the Fourth Industrial Revolution (4IR) for economic growth, Principal Consultant, Avant-Garde Innovation and Technology Services, Kayode Olaniyan, said there are efforts  to move Nigeria — and by extension, Africa — towards the attainment of the Sustainable Development Goals (SDGs) and a sustainable future.

He said these technologies are enabling the impressive transformation of entire systems and networks across companies, industries, and countries.

“To ensure widespread transformation in Nigeria, however, we need input from and strategic collaborations between private and public stakeholders. The nation is better positioned to harness the SDGs $12 trillion worth of unlocked revenue-generating opportunities incidental to the strategic utilisation of disruptive technologies,” he said.

Olaniyan spoke ahead  the sixth edition of its annual sustainability discourse, the Sustainability Table Series (STS) holding in Lagos on November 16, with theme:  Achieving Sustainable Development Goals (SDGs) in the fourth Industrial Revolution (4IR): opportunities for growth in a circular economy.

According to him,  “Nigeria needs to harness the full potential of the fourth industrial revolution (4IR) to achieve a sustained growth trajectory.” He explained, “Our nation has maintained its status as a big growth economy for several years without significant progress being made to harness the potentials inherent in the economy and transform the nation. In the last few years, however, there has been a massive proliferation of disruptive technologies that — if effectively utilised — can leapfrog the country in its economic development.”

With varying discussions, the panel sessions will explore topics from materiality to strategy: how organisations can mainstream sustainability leveraging technology and broadband penetration, accelerating the impact of SDG interventions through a public-private partnership, scaling finance for sustainable development: innovative solutions for an inclusive digital economy, and leveraging technology as a tool for sustainability advocacy and impact.

These topics will be explored by industry players and leaders, including a fireside chat with the SSA (Digital Transformation) to he President, Federal Republic of Nigeria and Lead, Nigeria Startup Bill (now Nigeria Startup Act 2022), Oswald Osaretin Guobadia; Honourable Commissioner for Environment, Ogun State Government, Oladimeji Oresanya and the Executive Secretary, E-waste Producer Responsibility of Nigeria (EPRON), Ibukun Faluyi amongst others.

In addition to the sessions, the 2022 Sustainability Table Discourse Series will boast an art exhibition featuring works from environmental activists and nature-inspired artists, including — El Anatsui, Prince Obasi, Uchay Joel-Chima, Anthea Epelle and Musa Ganiyy curated by Naomi Edobor of DICA Arts.

The Chartered Institute of Bankers of Nigeria (CIBN) has said the Nigeria Deposit Insurance Corporation (NDIC) excellence in professionalism and expertise has helped the corporation in protecting depositors and financial system stability.

The CIBN has therefore honoured the NDIC Director, Operations, Mustapha Ibrahim and 11 other NDIC Senior Executives with Honorary Awards.

Ibrahim was awarded with an Honorary Fellowship of the Chartered Institute of Bankers of Nigeria (CIBN) H(FCIB) along with NDIC Director Academy, Francis A. Agboola, during the 2022 CIBN Fellowship Investiture in Lagos.

The CIBN investiture event with the theme: Bridging the Infrastructure Deficit: The Role of Financial Institutions.

The event also featured the investiture of CIBN Honorary Senior Members H(CIB) on NDIC Director Strategy Development, Mrs. Stella Henshaw, NDIC Director Insurance & Surveillance, Mr. Aliyu Abdulhameed Mohammed, Head of MD’s Office, Iliasu Ibrahim Sani, NDIC Controller, Kano Zonal Office, Mr. Usman Aladire Shehu, and six  others.

The 2022 CIBN Fellowship Investiture awarded 387 members from the finance and banking sectors of the economy. The awards were given in recognition of their meritorious services, commitment to professional responsibilities and valuable contributions to the industry in particular and the economy in general.

The International Monetary Fund (IMF) has called for more savings from crude oil revenue to improve Nigeria’s budget funding.

The IMF Divisional Chief, Fiscal Affairs Department, Paulo Medas spoke during the Fiscal Monitor briefing in Washington DC.

He noted that while Nigeria has benefited from higher oil revenues, the fund has not seen an improvement in the deficits as expected because of the large energy subsidies,  oil production and pressures on the budget.

“So, our recommendation is to try to save some of these oil revenues but also address these emergency needs. Another aspect I would say is that Nigeria is one case where tax revenues are really low and this really undermines the capacity of the government to mark these types of shocks and to provide key services,” he said.

“In the case of Nigeria, where the priority is really domestic revenue mobilisation you need to increase the state capacity to address the needs of the country. And this will also help make fiscal policy work consistently in efforts to ensure economic stability.”

On the disparity in fiscal and monetary polices, he noted that “governments are facing a very difficult environment where you can in many countries they have digit inflation and in this aspect, fiscal policy needs to help monetary policy working together to ensure price stability. This is absolutely critical for stable growth and for some public finances in the countries. Countries like Nigeria especially that are oil exporters can take advantage of rising commodity revenues to address some of these needs and to reduce debt.”

On his part, Director, Fiscal Affairs Department at the IMF, Vitor Gaspar, noted that 19 of the 35 low income countries in Africa are in debt distress as more than 120 million people on the continent do not have enough food to eat.

Read Also: IMF seeks more savings from oil money

“According to estimates by the World Bank 11 million more people would enter extreme poverty now than what should have been expected under present trends. The food crisis is another devastating effect.

“Some estimates indicated more than 120 million people in Africa alone are suffering from food insecurity. They don’t have enough to eat. So this is a very, very serious situation. Governments are facing double digit inflation, many countries are facing very high debt. Many countries are facing debts similar to the early 2000s when they had debt relief.

“In our analysis 19 out of 35 low income countries in Africa are already in debt distress or at risk of debt distress. So this is really a very difficult context for governments. Where do you think fiscal policy should set the priorities and focus on three key elements?

“One is obviously to the resources and the most urgent needs. That is the food crisis. This is has to be done, together with the international community. Secondly, Africa already before the pandemic as a very low level, tax ratio to GDP. These levels have deteriorated so when you look now, compared to the pre pandemic trends, we have seen a natural decline in tax ratios.

“This makes it much harder for governments on to manage debt, provide basic services such as education and health and infrastructure. So it is important to step up the efforts on domestic revenue mobilisation and building state capacity to respond to these challenges,” he said.

Ecobank Nigeria has reiterated its commitment to corporate governance in the Financial Technology (Fintech).

The bank will be holding the second edition of the “Ecobank Fintech Breakfast Series” tomorrow in Lagos.

The edition, themed “Strengthening The Ecosystem” will focus on the role of good corporate governance in the fintech industry and what fintechs need to know about securing investments.

Read Also: Back2School: Ecobank unveils loans, remittances scheme

Head, Marketing and Corporate Communications, Ecobank Nigeria, Babajide Sipe said the bank was impressed with the outcome of the first edition, explaining that the bank’s decision to team up with TechCabal, to host the fintech parley.

The “Ecobank Fintech Breakfast Series”  is designed to hold quarterly and aims to gather fintech leaders across the continent to share business insights, as well as discuss pertinent topics in the fintech ecosystem such as regulatory guidelines, funding and other topics of interest to support both established and fintech startups at different stages of their journey.

Transnational Corporation of Nigeria (Transcorp) Plc has recorded N19 billion Profit Before Tax (PBT) in its results for the third quarter ended September 30, 2022.

The result was an improvement from N13.3 billion   PBT recorded during same period in 2021.

The company also achieved significant improvement across other major income lines.

Despite the extremely challenging business environment, the conglomerate with investments in the hospitality, power and oil & gas sectors, recorded impressive growth in its profit before tax, which  grew by 47.7 per cent to Ný20.9 billion.

The results filed with the Nigerian Stock Exchange also showed that the Group’s total revenue rose by 12.5 per cent from N85.6 billion in September 2021, to N96.2 billion in the period under consideration.

Operating Income also grew by 14.5 per cent from Ný27.5 billion in September 2021 to N31.5 billion in September 2022, while operating expenses for the quarter ended September 2022, stood at Ný16.0 billion, representing an increase of 30.9 per cent compared to Ný12.2 billion recorded in the same period of 2021.

Commenting on the results, Transcorp’s President/Group Chief Executive Officer, Owen Omogiafo, explained that the laudable performance this quarter was achieved as a result of the improved performance across all our businesses.

She said, “Despite the challenging operating environment, characterised by gas supply constraints, foreign exchange volatility and rising inflation, amongst others, the group improved profitability and performance during the period. Our hospitality business has sustained its strong growth trajectory, outperforming all indices. Our business model remains robust, thanks to the prudent and adaptive strategy we have taken across our operations.”

While expressing confidence in the company’s capacity to deliver even better results in the last quarter of the financial year, she said, “We remain focused on efficiency, cost leadership, and meeting market demand to consistently deliver profitability and value to all our shareholders.”

Transnational Corporation Plc (Transcorp Group) is a publicly quoted Conglomerate, with a diversified shareholder base of over 300,000. Our portfolio comprises strategic investments in the power, hospitality, and oil and gas sectors. Our businesses include Transcorp Hilton Abuja, Transcorp Hotels Calabar, Transcorp Power, Transafam Power, and Transcorp Energy.

Honeywell Group has entered into strategic partnership with the Commonwealth Enterprise and Investment Council (CWEIC) in a bid to foster trade and investments across the Commonwealth nations.

Managing Director, Honeywell Group, Mr. Obafemi Otudeko has also been appointed as a member of CWEIC’s Global Advisory Council.

CWEIC is a not-for-profit commercial organisation with a mandate from Commonwealth Heads to facilitate trade and investment throughout the Commonwealth nations. It boasts of almost 100 business and government strategic partners from 30 countries and territories.

CWEIC partners include multinationals such as Standard Chartered, Afreximbank; sub-sovereign governments such as Government of Jersey, Government of Queensland, and the City of London and countries including Cameroon, Bangladesh, the Maldives, Malta, United Kingdom among others.

Otudeko said the strategic partnership with the CWEIC underlined the near five decades of impactful business by the Honeywell Group.

According to him, for over 49 years, Honeywell Group has invested in critical sectors of the Nigerian economy including energy, technology, manufacturing, foods, real estate, infrastructure, and financial services by creating, building, and investing in great businesses that deliver enduring value and improve lives.

He noted that through strategic investments in its portfolio businesses, Honeywell Group has steadily advanced the economic potential of Nigeria, West Africa and the wider continent globally.

“We have a history of establishing impactful cross-sector partnerships that create valuable opportunities and drive sustainable growth in Africa and beyond. We are excited about our partnership with CWEIC as this will enable us to engage with a more extensive network of international partners focused on establishing growth-driven enterprises across the Commonwealth,” Otudeko said.

He pointed out that with Honeywell Group’s astute, timely investments and strong performance management practices, the partnership will enable the company to build further upon its assets and make a positive impact on communities and its stakeholders.

“The strategic partnership with CWEIC will also help support the growth ambitions of Honeywell Group and its portfolio businesses, connecting them to international clients and partners, with early access to potential investment opportunities,” Otudeko said.

“I have great pleasure in welcoming Honeywell Group as a strategic partner of the Commonwealth Enterprise and Investment Council (CWEIC). It is an honour to welcome you to the CWEIC network. I am also delighted to welcome you-Obafemi Otudeko to our Global Advisory Council.” CWEIC’s Chairman, Lord Marland of Odstock, stated.

As a member of CWEIC’s Global Advisory Council, Obafemi Otudeko will engage with C-suite business leaders and government decision-makers through a network of almost 100 businesses and governments at CWEIC’s events, industry-focused webinars, and international delegations.

Unity Bank Plc has declared a N2.2 billion profit for the nine-month period ended September 30, 2022.

The bank also posted N42.2 billion gross earnings, a 17 per cent rise from N36.2 billion in the same period of 2021. The increase can be attributed to new products that focused on deep penetration and driving volume in the retail market space.

A review of the Agric-focused lender’s unaudited nine-month results released to the Nigerian Exchange Group Limited on Friday showed that the bank’s Profit Before Tax rose by five per cent to close at N2.206 billion. The bank also recorded an equal marginal growth in its Profit After Tax which increased to N2.029 billion, representing a  five per cent rise from N1.9 billion recorded in the same period of 2021.

Other key highlights of the nine-month financials include customer deposits of N334.7 billion which represents a four per cent increase from N322.3 billion in the corresponding period. The position underscores the increasing uptake of the market for the Bank’s products innovation, and mass-market-oriented retail focus that continues to boil wide acceptance across various segments of the mass market.

The lender’s performance comes on the heels of a fragile recovery from the global pandemic buffeted by economic headwinds including rising inflationary trends, interest rate hikes, foreign exchange volatilities, etc. which have impacted severely on the overall economic outlook in the country and the rest of the world.

Commenting on the result, the Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun said that the outlook for the full year 2022 remains positive, reflecting optimism, stability, and growth in key performance indicators. She noted that the growth trajectory recorded in the Bank’s revenue (17 per cent), Profit (five per cent), and deposit ( four per cent), etc., is a testament to the positive sentiment in the market, especially at a time the market is experiencing a downturn with high inflationary trend and volatility which impacts negatively on the operating environment.

The start of the fourth quarter has revealed a solid improvement in the health of Nigeria’s private sector as output and new orders rose sharply, Purchasing Managers’ Index (PMI) report for October has shown.

The report also said purchasing activity increased at an accelerated pace within the coverage period.

On the price front, price pressures showed further signs of abating with the overall rate of input cost inflation the weakest for three months, but still marked by historical standards. Selling prices were also raised, albeit at a softer rate than that seen in September.

At the same time, backlogs increased for the second month in a row, with sustained accumulation of outstanding business suggesting that hiring activity could continue in the months ahead.

The headline figure derived from the survey is the Purchasing Managers’ Index (PMI). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

According to Stanbic IBTC, the headline PMI posted at 53.6 in October, little-changed from 53.7 in September, indicating a solid improvement in the health of the private sector.

A key driver of growth was a sharp rise in new orders following reports of favourable and improving market conditions.

In turn, firms raised their output levels and for the fourth month in a row. Moreover, the rate of increase was quicker than the long-run series average. Manufacturing firms registered the strongest increase in output, followed by services, wholesale & retail and finally agriculture.

Backlogs increased for the second month in a row during October, but the rate of increase eased from that in September. Firms subsequently continued hiring activity, but the rate of growth was mild, and the joint-weakest in the current 21-month sequence of job creation.

Sustained expansions in new orders led Nigerian private sector firms to raise their purchasing activity, with the rate of growth quickening on the month.

Pre-production inventories also rose robustly, with the rate of growth quickening to a three-month high amid firms’ efforts to boost their stockpiles.

Supply-chain performance improved, with lead times now shortening in each month for the last five years. Meanwhile, prices data revealed another month of overall input price inflation.

It said that higher purchase and staff costs underpinned the latest rise which eased from September, but was sharp and historically elevated, nevertheless.

Selling prices also rose, but at the weakest pace for almost two years.

Whilst firms maintained an optimistic view towards output in the next 12 months, the degree of positivity was the second lowest in the series history, with that only recorded in September 2020 weaker.