The Nation Newspaper

Tag: The Managing Director

  • Market operators urge CBN to reduce interest rates to accelerate growth

    Market operators urge CBN to reduce interest rates to accelerate growth

    Some capital market operators on Monday advised the Central Bank of Nigeria (CBN) and Debt Management Office (DMO) to reduce yield rates on Treasury Bills (TBs) and bonds to accelerate economic growth.

    They told the News Agency of Nigeria (NAN) in Lagos that the two agencies should bring down TB and bonds yield rates to encourage banks to lend to the real sector.

    Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd. in Lagos, said commercial banks had abandoned their core banking duties to seek haven in bonds and TBs due to their high yield rates as high as 18 per cent.

    Kurfi said that banks should be compelled to lend to the manufacturing sector to accelerate economic growth by reducing the bonds and TB yield rates.

    According to him, interest accruable to these instruments should be reviewed down to 13.01 per cent as it is the case with the Federal Government savings bonds that closed on March 17.

    Kurfi also urged the apex bank to pursue positive economic policies that would sustain the current gains in the foreign exchange market and inflation rate.

    He suggested that the Monetary Policy Rate (MPR) should be lowered to 13 per cent in the near future with the appreciation of the naira and further drop in inflation rate in view.

    Kurfi expressed optimism that stock market activities would close on the upbeat this week with investors’ anticipation of positive 2016 earnings from commercial banks.

    He said that more banks were expected to release their results this week to beat March 31 deadline stipulated by the Nigerian Stock Exchange (NSE) for companies whose financial year ended on Dec. 31.

    NAN reports that only three banks namely – Zenith Bank, Access Bank and Guaranty Trust Bank-  have released their 2016 audited results so far.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., advised policy makers to embrace friendlier policies to sustain economic growth.

    Omordion said that transaction of the NSE would likely oscillate this week due to profit booking and reactions to expected good earnings as more financial results were expected in the market.

    He urged investors to combine technical and fundamental analyses in trading decisions to know the support and resistance levels.

    NAN reports that a turnover of 1.03 billion shares worth N7.98 billion were exchanged by investors in 13,441 deals on the NSE last week against 1.02 billion shares valued at N12.46 billion `traded in 16,400 deals in the preceding week.

    The Financial Services Industry led the activity chart with 853.41 million shares worth N4.27 billion in 7,904 deals, thus contributing 82.91 per cent and 53.50 per cent to the total equity turnover volume and value terms, respectively.

    The Oil and Gas Industry followed with 80.25 million shares valued at N1.15 billion traded in 1,443 deals.

    The third place was occupied by Conglomerates sector with turnover of 45.77 million shares worth N83.47 million achieved in 596 deals.

    The NSE All-Share Index appreciated by 415.15 points or 1.64 per cent to close at 25,653.16 against 25,238.01 achieved in the preceding week.

    The market capitalisation, which opened at N8.734 trillion, appreciated by N144 billion or 1.64 per cent to close at N8.878 trillion

  • Nasarawa to spend N1.1bn on 5.7km Karu International Market road

    Nasarawa to spend N1.1bn on 5.7km Karu International Market road

    The Nasarawa State Government says it will spend about N 1.1billion on the construction of the 5.7km Angwan Hashimu/Karu International Market road.

    Alhaji Adamu Sule-Mohammed, the  Managing Director, Nasarawa State Urban Development Board (NUDB), disclosed this on Friday in Mararaba, Nasarawa State.

    He spoke when members of the Nasarawa State House of Assembly Committee on NUDB and Town Planning paid an oversight visit to the project site in Mararaba, Karu Local Government Area.

    Sule-Muhammed said that the road would reduce the hardship of people of the area as well as those plying the road.

    “My honourable members, we are all aware that the importance of embarking on the construction of roads and bridges by any government cannot be over-emphasised.

    “Apart from boosting the socio-economic development and the revenue base of the state, it will also help in reducing the plight of the people.

    “I want to disclose to you that the construction of the 5.7km Angwan Hashimu/Karu International Market road will cost the government about N1.1 billion, and already, N270.4 million has been paid to the contractor,’’  he said.

    Earlier, Mr Suleiman Alhassan (APC-Uke/Karshi), the chairman of the committee, said that the oversight visit would enable the committee assess the 2016 budget performance of the ministry.

    Alhassan, was represented by the Majority Leader of the House, Umar Tunga (APC-Awe-North).

  • Nigeria will come out of recession stronger in 2017— LCCI

    Nigeria will come out of recession stronger in 2017— LCCI

    The President, Lagos Chamber of Commerce and Industry (LCCI), Dr Nike Akande, has predicted  that Nigeria will surmount its economic woes and come out of the recession stronger in 2017.

    Akande said this on the sidelines of the LCCI 128th Annual General Meeting (AGM) dinner in Lagos.

    She said that Nigeria, as the giant of Africa, would not stay too long before bouncing back to its former pride of place among the Commonwealth of Nations.

    “LCCI has noted in particular the decline in oil price, the weakening of our currency and the associated challenges this scenario portends.

    “I strongly believe that we will bounce back from the recession stronger in 2017. The economic recession was caused by our over-dependence on oil, but now we have taken the bull by its horns.

    “So many campaigns are going on and restructuring on diversification; with all these put in place, we are sure to come back to reckoning among the Commonwealth of Nations.

    “The year 2o17 is just a couple of months away but by the end of it, things will be better, I am very optimistic,” she said.

    The Managing Director, Bank of Industry (BOI), Mr Waheed Olagunju, said right investment portfolio and diversification would get Nigeria out of recession in short time.

    “What we need to do in this time of this recession is to diversify our economy and stop paying lip service to it.

    “We will need to look at the Mexico model and stop the over-reliance on crude oil as the mainstay of revenue for the country.  We need other sectors as well.

    “We need to encourage more investments because increased investment is one of the ways we can get out of recession. When you invest, it increases production and the Gross Domestic Product (GDP) increases.

    “We can only grow our economy by providing a wide range of investment portfolios and also encourage manufacturing which is a key to any economic development,’’ he said.

  • Dasukigate: Court grants bail to businessman allegedly paid N2.4bn

    Dasukigate: Court grants bail to businessman allegedly paid N2.4bn

     

    A Federal High Court in Abuja has granted bail to a businessman, Olugbenga Obadina, the Managing Director, Almond Projects Limited who was allegedly paid about N2.4billion by the Office of the National Security Adviser, ONSA, under Col. Sambo Dasuki (rtd), without evidence of services rendered.

    Obadina was arraigned with his company last Friday by the Economic and Financial Crimes Commission (EFCC) on an eight-count charge for allegedly collecting N2, 417, 000,000.00 paid into his company’s account in tranches, between 2013 and 2015 from the account of the ONSA under Col. Sambo Dasuki (rtd) without contract award.

    The offence is contrary to Section 15(2), (d) of the Money Laundering (Prohibition) Act 2011 as amended in 2012 and punishable under Section 15(3) of the same Act.

    Ruling on Monday, Justice Nnamdi Dimgba admitted Obadina at N500million  with two sureties who must each endorse a bond of N250m.

    The judge said the sureties can be a private businessman, professional or civil servant of the rank of a director.

    “The sureties must have landed properties either in Asokoro, Maitama, Apo Legislative quarters, Wuse II area of Abuja, or Victoria Island, Lagos State. The sureties are to provide evidence of income tax payment for three years,” the judge said.

    He directed Obadina to deposit his international passports with the registrar of the court, and must go to the EFCC to comply with Section 15 of the Administration of Criminal Justice Act, which entails submitting himself for biodata collection, fingerprinting, snapshot and necessary profiling.

    Obadina is to be remanded in prison custody pending satisfaction of his bail conditions.

    The judge adjourned to September 30 and October 4, 2016 for trial.

     

  • CBN, banks brainstorm on solution to mass sacking

    CBN, banks brainstorm on solution to mass sacking

    The Bankers’ Committee of the Central Bank of Nigeria (CBN) on Thursday gave assurance that the rate of mass sacking in banks would be reduced within the shortest time possible.

    The committee stated this at the end of its 327th meeting at the headquarters of the CBN in Abuja

    The Managing Director,Standard Chartered Bank,Mrs Bola Adelola, said the mass sacking in the sector was discussed at the meeting.

    Other members of the committee present at the briefing were the Director, Banking Supervision, CBN,Mrs Tokunbo Martins; Managing Director, United Bank for Africa Plc, Mr Phillips Odouza and Managing Director, Union Bank of Nigeria Plc,Mr Emeka Emuwa.

    She said that while the banks understood the economic situation in the country, there would always be reasons for workers to be relieved of their jobs.

    “On the recent news item on retrenchment, we also discussed it and obviously banks understand the implications of people not being in employment. We know what the situation is like in the country.

    “Thus we are looking at ways of ensuring that we minimise many exit from our institutions. There will always be exit as you know because there is fraud and so on and so forth.

    “So we have noted the market sentiments and I am sure that going forward it will be different,” she said.

    Adesola said that the framework for a National Collateral Registry was almost ready and when released, it would facilitate the easy access of loans by bank customers.

    She said based on the guidelines, those seeking loans from banks could use movable assets such as vehicles, fridges, and other home appliances as collaterals.

    “You are all aware that the Central Bank of Nigeria is developing a National Collateral Registry. I am pleased to say that they have put the framework in place and the technology.

    “They have begun to engage stakeholders and we should expect a role out of the collateral registry being available to banks to register movable assets that they lend against.a policy statement will be issued shortly.

    And we expect that that will make more robust the banks’ credit process in lending to customers against movable asset,” she said.

    Meanwhile the Director, Banking Supervision, CBN, Mrs Tokunbo Martins, speaking on financial inclusion strategy, said the rate of Nigerians that were financially included in the financial sector had risen to 60.5 per cent.

    She said the committee planned to ensure that an additional six million people were captured into the financial system before the end of this year.

    “As at today, we have a financial inclusion rate of 60.5 per cent, and you will recall that the target is that by 2020 we should have 80 per cent of the population included.

    “So the CBN has agreed targets with the commercial banks and also microfinance banks and by the end of this year, we hope to increase the inclusion rate by eight per cent.

    “Strategies and milestones have already been mapped out to achieve that target at the end of the year,” she said.

    Also, the Managing Director, United Bank for Africa Plc, Mr Phillips Odouza, said the reason for the delay in releasing the framework for the new flexible foreign exchange policy was to ensure more inputs from stakeholders.

    He said as a result of the huge challenge which the country had experienced in the past in managing foreign exchange, there was need for CBN to consult widely, to come up with a robust foreign exchange management framework.

    He warned those involved in currency speculation to desist from such practice. He said once the guidelines were finally released, currency speculators would regret their actions.

    “We also discussed the framework for flexible exchange rate. As you know, the Central Bank has been working on this for sometime. A lot of input has been received.

    “As you know, some other jurisdictions have also implemented the flexible exchange rate model and some of them have done very well and the others are still fine tuning what they have done.

    “In the case of Nigeria, we want to make sure that we come up with a model that is very robust and very comprehensive that will be able to address the major exchange rate issues that we are dealing with.

    “To this extent, we have gotten a lot of input from various stakeholders and these inputs are being distilled with a view of getting a robust flexible exchange rate model.

    “I believe that in a very short while, the exchange rate will be ready. And once this happens, it is going to be made public.And we will adopt it and start working with it immediately,” he said.