Category Archives: Markets

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ALGON Delegates Fault Moves to Scrap LGS

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Delegates representing the Association of Local Government of Nigeria (ALGON) at the ongoing National Conference have objected to the recommendations of the conference Committee on Political Restructuring to scrap the third tier of government from the concurrent list of the constitution.
 
The leader of the delegation and former National President of ALGON, Dr Felix Akhabue, who addressed journalists yesterday at the venue of the conference said those calling for the scrapping of local government administration are enemies of the people.
 
He reassured the people that the recommendations would be defeated when the conference reconvenes at the plenary. He said delegates would resist the recommendations, adding that rather than scraping local government administration, the committee should recommend ways to strengthen it.
 
Akhabue, instead, urged the conference to scrap state electoral commissions and allow the federal body, Independent National Electoral Commission (INEC), to conduct free and credible local government elections.
He also called on the delegates to ensure that local government administration gets direct funding from the federation account if they want fast development to get to the people.
 
"Let me believe that it is still a rumour. What I know is that the local government is the only arm that is closer to the people. All the recommendations of previous conferences and committees have advocated for the strengthening of the local government in Nigeria.
 
"When members of the National Assembly went round the whole country and sampled the opinions of Nigerians, more than 80 percent said local government administration should be strengthened. So, it is funny for just 25 people to sit and agree that the tier should be scrapped.
What power have they to do that? We are holding trust on behalf of the people.
 
"When you talk about democracy, how many people can get to states and the federal government? Local government is the closest to the people and Nigerians are saying they want it strengthened. What we should do is how to ensure that INEC conducts local government elections in all the states of the federation in order to ensure free and fair elections.”
 
According to him, "Local government should be given full autonomy and get their allocations directly from the federal government. That is the only way to ensure that they deliver and not call for it to be scrapped. We will do all we can to ensure that the third tier of government is strengthened for the benefit of the people."
 

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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External Reserves Climb Marginally to $38.142bn

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Nigeria’s beleaguered external reserves have appreciated slightly by $292 million this month to $38.142 billion on Monday.
 
The latest value of the external reserves represents a marginal accretion of 0.8 per cent, compared to the $37.850 billion it stood on April 1.
 
Financial market analysts attributed the gradual accretion of the reserves, which are mainly derived from proceeds of crude oil sale to the dwindling appetite for the United States dollars at the forex market.
 
Nigeria’s forex reserves had suffered a sharp decline over the past three months, dropping from $42.85 billion at the end of December 2013 to $37.83 billion as at March 20, 2014.
 
The erosion was then attributed to the pressure on the naira and the determination of the central bank to maintain price stability through repeated interventions in the forex market.
 
This pressure on the naira was sustained for several months and had heightened argument over whether or not the currency should be officially devalued.
 
The Deputy Governor, Operations, CBN, Dr. Kingsley Moghalu had said revenue leakages from oil theft have continued while uncertainty remains over the fate of the yet-to-be adopted Petroleum Industry Bill.
 
“The Excess Crude Account (ECA) has been severely depleted in recent months, resulting in marked domestic and international concerns over the absence of safety buffers for the Nigerian economy in the event of any shocks,” he had said.
 
The Monetary Policy Committee (MPC) had at its last meeting unanimously agreed that a continuation of a tight monetary policy was needed to consolidate external reserves accretion.
 
The MPC had noted that prudent monetary stance would also facilitate better forex reserve and exchange rate management in an environment where Fed Reserve tapering increases pressure on emerging economies financial markets.
 
According to the committee, there are uncertainties in the domestic and international market environment. 
 
The Chief Executive Officer, Financial Derivatives Company Limited, Mr. Bismarck Rewane maintained yesterday that the central bank would soon accept the reality of naira devaluation earlier than anticipated, adding that excess liquidity in the system may become a real problem.
 
He said the higher amount of money shared at the monthly Federation Account Allocation Committee (FAAC) meetings despite shortfall in oil revenue was not in the best interest of the country because it meant reserves and other savings were being depleted to make up for the shortages.
 

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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NCAA Approves Security Programme for Airports, Audits Foreign Airlines

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In response to the prevalent security threats in the country, the Nigerian Civil Aviation Authority (NCCA) has approved security programme for the 22 airports owned by the federal government in line with the Nigerian Civil Aviation Regulation Part 17 requirements and the National Civil Aviation Security Programme (NCASP).
 
The approval is part of efforts by the agency to respond to the security challenges facing the country especially in the wake of breaches at the nation’s airports which indicate that many of them are porous and lack perimeter and security fencing.
 
There also may be inadequate aviation security personnel, which explains why the airports have not met the International Civil Aviation Organisation (ICAO) certification.
 
According to statement by the NCAA General Manager,  Public Affairs,  Mr. Fan Ndubuoke, the Airport Security Programme (ASP) is reviewed regularly and subjected to ICAO’s amendment of Annex 17 in response to the global threat to civil aviation.
 
He said the security programme was reviewed taking cognisance of the prevailing local threats which would give fillip to further examination of NCASP  or security directives to the industry.
 
“Suffice it to say that security programmes are written by airports, aircraft operators, caterers, ground handling companies and other stakeholders. Thereafter, this is submitted to the regulatory authority, NCAA, which is the appropriate authority responsible for aviation security in the country”, he added.
 
He explained that aviation security programme provides measures and procedures on safeguarding the airport, aircraft, crew and property against acts of unlawful interferences.
 
“NCAA provides guidelines for the development of the Airport Security Programme, which is a requirement of ICAO Annex 17 standard 3.2.1 which states that each contracting state shall require an airport serving civil aviation to establish, implement and maintain a written airport security programme appropriate to meet the requirements of NCASP,” he said.
 
Meanwhile, wholesale security audit has been conducted on 18 foreign and local airlines operating in the country.
 
The audit was based on emerging threats, previous findings and incidents to forestall reoccurrences and the exercise would be carried out annually or bi-annually, depending on current security situation at any time.
The NCAA explained that holders of an approved security programme  are periodically audited to ascertain the level of compliance to security guidelines.
 
Other parameters to be adopted were the NCASP, security directives and other benchmarks.
The authority stated that at the conclusion of the audit, the airlines were mandated to submit a Corrective Action Plan (CAP) outlining measures that would be taken within a specific time frame to address their shortcomings.
 
To ensure that all operators and stakeholders are in tune with adequate security measures of NCAA, the Aviation Security Unit of the Directorate of Aerodrome and Airport Standards (DAAS) conducts aviation security awareness training for them on regular basis.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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NIGERIA: Bank Verification Number to Commence in Lagos

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Deposit money banks (DMBs) would commence the enrollment of customers on the Bank Verification Number (BVN) that was launched over two months ago in Lagos from May this year.
 
The BVN, a Banker’s Committee project is meant to address the safety of customers’ funds, avoid losses through compromise of personal identification numbers and other criminal activities in the industry.
 
The acting Head of Corporate Communication, Central Bank of Nigeria (CBN), Mr. Isaac Okoroafor, who disclosed this, explained that BVN would revolutionise the banking system.
 
In addition, he said the scheme would initially commence in 1,000 bank branches in Lagos.
 
According to the central bank spokesperson, as at March 31st, the scheme which was launched on February 14, had been deployed to all the head offices of banks and “We said by April we would have started enrolling and that is ongoing. 42 of the 48 bank braches that we said we would roll out to in the pilot phase have been covered and we hope that within the next few days we would complete that.
 
“We also intend to enroll members of the public on the programme by the end of May. Just like we did with the cashless programme, you know people are not educated, and because it has to do with money, people may be reluctant to register.
 
“But what we intend to do is to start the public roll out in Lagos with 1,000 bank branches. Lagos has about 1,401 branches,” he explained.
 
Furthermore, Okoroafor pointed out that just like the cashless policy, the Bankers’ Committee would look at the challenges that would emanate from the exercise when it commences in Lagos, before extending it to other states in the country.
 
He said the scheme was introduced, considering the low literacy level in the country, which had hitherto discouraged a lot of people from being included in the financial system.
 
“We realised that so many people because they are not educated and can’t read and write are not able to come into the banking system.
 
“The bankers’ committee came up with the BVN solution to prevent identity, to check fraud and to enable those who can’t read and write to be included in the banking system,” Okoroafor said.
 
On his part, the Project Coordinator of the BVN, Mr. Oluwaseyi Adenmosun noted that one of the reasons why the Bankers’ Committee came up with the policy was to properly identify customers in the industry.
 
“Today, we do not know if the Seyi Ademosun that banks with First Bank is the same person as Oluseyi or Oluwaseyi Ademosun that banks with FCMB. So Seyi can have account in 10 banks, but the way he has been profiled in those banks would all be different.
 
“So as far as each bank is concerned, they are dealing with different persons. So there is nothing to show that the Seyi is the same person.
 
“So the bankers committee felt it was necessary given the state of fraud in the industry. So the BVN is something that would hold everything together. So, this project was identified to provide uniqueness.  It also helps us with accountability,” he explained.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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NIGERIA: NIMC to Launch National e-ID Card

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The National Identity Management Commission (NIMC) has said that the long awaited New National Identity Card would soon be launched.
 
The Director, Corporate Communications, Mr. Anthony Okwudiafor, who confirmed this said the Card would be formally launched by President Goodluck Jonathan.
 
According to him, the launching would be an important development and would usher in the formal and comprehensive identification of Nigerians and legal residents with the e-ID with embedded National Identification Number (NIN).
 
However, Okwudiafor explained that part of the reasons why the launch of the New National e-Identity card was delayed was to allow Nigerians distinguish, understand and appreciate the difference between the National Identification Number and the National ID Cards.
 
“Part of the reasons why we delayed the roll out of the cards is because we deliberately meant to separate and distinguish between the National Identification Number (NIN) which is a person’s identity in the strict sense of the Universal Identification Infrastructure and the National ID-Cards which will carry the National Identification Number”, the Director also explained
 
Okwudiafor said while the Commission worked on addressing the cynicisms which followed the past national identity card projects, research findings showed that there was need to distinguish between the NIN and the New ID Card in the minds of Nigerians.
 
He remarked that the Commission therefore delayed the Card launch in order to allow Nigerians know that the unique identifier is not the card which can always be replaced when it is lost, but the NIN, which would always remain the same, even when the card is lost and replaced.
 
“With the planned introduction of the long awaited card, the era of proliferation of identity card and biometrics data would come to an end,” Okwudiafor said.
 
He added that the Commission has also introduced a new TV commercial shortly after sponsoring a weekly TV Drama which is aired every Sunday at 6:30 pm to sensitise Nigerians on the importance and need of the National Identity Management System (NIMS).
 
Recently the NIMC announced a successful issuance and testing of the card which would serve both as a payment card and travel document aside from being an electronic identity card.
 
As an electronic identity card it would enable an individual perform other functions under the harmonised National Identity Database which was recently ordered to be populated by the President in October, 2013.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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‘Mobile Payment Competition Healthy’

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The founder of Paga Mobile Payment Limited, Mr. Eyitayo Abiosun has said that the ongoing competition in the mobile payment industry is very healthy.
 
He made this remark in Lagos at the weekend during the organisation's fifth year anniversary.
 
He explained that competition among licenced mobile payment operators in the country have been healthy.
 
Abiosun also noted that all licenced mobile money firms are working towards efficient service delivery to their customers.
 
"There are many companies in the mobile payment industry and I think we are all going towards same business, which is how we can deliver mobile payment to Nigerians whether in your business or individuals, "he said.
 
He also pointed out that Central Bank of Nigeria (CBN) on one side as a regulator had been helpful in terms of risk management infrastructure to ensure safety of transactions.
 
"In 2013, we did five million transactions and by end of March 2014, we have done more than half of that, "he said.
 
While disclosing that presently, the firm has 4,500 agents in the country, Abiosun further stressed that his firm is targeting 7,000 agents by the end of 2014.
 
He, however, hinted that mobile payment system, especially with Paga, would support the growth of the economy. According to him, mobile payment would provide convenience for bank customers.
 
He also averred that there has been a value creation through job opportunities, adding that it had provided job opportunities for the over 4,500 agents.
"It is creating jobs. The 4,500 agents we have, many of them have hired people because Paga business, Abiosun said.
 
Meanwhile, the Co-founder, Paga, Mr. Jay Alabaraba, in a chat with journalists, said they his organisation is going in the right direction because it has already an established a brand that customers can trust and relate to.
 
He noted that it has been consistent with building the brand with the high quality service delivery they provide.
 
Speaking on the challenges faced by mobile money operators, he highlighted the infrastructure deficit, delays in SMS delivery and network downtime, which he said the firm has been able to resolve.
 
Alabaraba also pointed out that Paga’s unique selling point is its convenience.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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NIGERIA: Arik Plans Flights to India as Ambassador Inspects Facilities

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Nigeria’s major carrier Arik Air is making plans to operate direct flights to India to tap into the huge traffic of travellers  between the world’s second most populated country and Nigeria.
 
This consideration came to the fore when  the Indian High Commissioner to Nigeria, His Excellency, Ajjampur Rangalah Ghanashyam, visited the airline’s headquarters in Lagos.
 
The High Commissioner during the visit discussed with Arik on the possibility of the airline starting operation to India, considering the fact that presently passengers travelling from Nigeria have to connect to India through Addis Ababa, South Africa or Dubai, which usually makes the trip cumbersome.
 
According to the High Commissioner, direct flights between Nigeria and India would boost business, tourism, save passengers flight time and reduce the stress of the journey.
 
“Direct flights are also important during medical emergencies, because direct movement of patients during emergencies would save a lot of lives,” Ghanashyam said.
 
He said he was impressed with the profile of the airline, which appears to him a professionally run carrier, stressing that Arik Air’s fleet size, route network and staff strength meant it was an airline that would serve as a strong partner in providing direct flights between India and Nigeria.
 
“With over 120 daily flights, 26 aircraft and over 2000 direct employees, Arik Air qualifies as a serious player for any Indian airline to partner with in order to facilitate seamless flights between the two countries.
 
“This visit to Arik Air is the first stage in building an initial bridge of understanding. The airlines will decide the potential and viability of a partnership. I am confident that Arik Air has done well, given the facilities I have seen,” Ghanashyam said.
 
The High Commissioner was received on the visit by the Chairman of Arik Air, Joseph Arumemi-Ikhide, President/Group Chief Executive, Dr. Michael Arumemi-Ikhide and Deputy Managing Director, Captain Ado Sanusi.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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NIGERIA: Ojomu Canvasses ICT Centres for Rural Public Schools

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Government has  been urged to build information and communications technology (ICT) centres in all rural public schools across the country in order to enhance students’ competitiveness in the use of info-tech facilities.
 
A philanthropist, Mr. Akorede Ojomu made the call while donating an ICT centre for Iwerekun Community High School in Ibeju Lekki at the weekend.
 
He said the call was borne out of the need to help the pupils of schools like Iwerekun Community High School compete favorable with other students in Lagos State.
 
Ojomu said about N5 million was expended on the project, which include the ICT building and other facilities such laptops, printers, projectors and magic board among others.
 
According to him, as an indigene of this community, I observed that there is a gap in this regard for the students. Although government is doing its best, I was moved to do this to help raise the standard of education in the community.
 
He explained that most of the pupils who attend public schools are from average homes whose parents cannot afford the luxury of laptops and other ICT facilities, adding that the development would help resolve that challenge.
 
He added that ICT “is the driving force of development all over the world that is why the centre is build with stand by generator that would ensure constant electricity at all time for the students to learn with.
 
“My dream to drive development in my community cannot be restricted political ambition; the only way to touch life is by doing things from our community level, things that can have direct impact in the life of the masses.
 
“We have put in place ICT professionals that will constantly train the teachers that will use the facilities for learning at the school. I believe anyone that is well equipped with ICT can start up a means of livelihood after leaving secondary school.”
 
Ojomu said the centre would be commissioned on Wednesday by the Lagos State Commissioner for Education, Mrs. Olayinka Oladunjoye.
 

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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NIGERIA: We Have not Increased the Price of Cement, Says Dangote

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Dangote Cement Plc has noted that it had not increase the price of its product and that the rebranding of its 42.5 grade of cement is at no extra cost to the consumers.
 
The Company made this disclosure recently day at the weekend during a Radio Nigeria’s Amuludun FM phone-in programme, Oyin Momo, during which listeners complained of skyrocketing price of the vital commodity and called on the Company as the biggest manufacturer to intervene to save the consumers.
 
Fielding questions from the callers, Dangote Cement Sales Director for the South-West, Mrs Funmi Sani and the Director of Marketing Services, Olaniyi Johnson explained that Dangote Cement had not and would not add a kobo to the price of cement despite the increase in the cost of production inputs.
 
Mrs Sani explained that the only plausible reason for high cost of the product in the market was excessive profiteering by some unscrupulous distributors and dealers who might be cashing in on the little scarcity of the commodity.
 
She stated that the recent epileptic supply of gas to operate the manufacturing plants has hampered regular production and that the situation is affecting all manufacturing concerns in the country.
 
The Director blamed the hike in price on unpatriotic distributors with undiluted appetite for profits who are capitalizing on the little scarcity caused by the shortage of gas supply to the plants to produce maximally.
 
The callers then urged the Company to help out by cautioning its distributors against excessive hike of the price so that everyone would have access to the product.
 
Mrs Sani promised that the company would look into the problem and come up with a solution as the management would not want its customers to suffer unnecessarily.
 
In his submission on the programme, Director of Marketing Services, Olaniyi said Dangote was concerned with the spate of building collapse and has therefore decided to rebrand its 42.5 cement grade so that the people would be able to identify it from the rest with lower quality.
 
Olaniyi who has being on a nationwide training of block makers on the appropriate use of cement said the newly branded 3X Dangote cement guarantees more profit for the blockmakers as they can churn out more blocks from the same bag of cement because of the added nutrients for longer life, higher yield and stronger setting.
 
The Dangote Cement boss likened the use of Dangote cement to eating a solid food while using other cement of 32.5 grade is like taking watery pap.
 
He also promised that the Company would look into the issue of price increase as the Company felt the pain of the consumers who have to cough out more money to purchase the same product.
 
Olaniyi also assured that the new 3X Dangote cement would be difficult to adulterate as the new branding would not allow for saboteurs to fake the product.
 
He described the new move by Dangote Cement as its own way of responding to the issue of building collapse and urged the people to join the call for total ban on the production and use of 32.5 grade cement still in the market

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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NIGERIA: Reduced Dollar Demand Bolsters Naira

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The naira appreciated against the United States dollar across various market segments last week amid decreased demand for the greenback. Also, the market recorded improved dollar inflow.
 
Specifically, at the Central Bank of Nigeria’s (CBN’s) regulated forex market, which opened only on Wednesday due to last Monday’s public holiday, the central bank offered $400 million but sold $382.07 million to end-users.
 
This was 39.03 per cent lower that the amount sold the preceding week. The marginal rate of the naira was N155.73 to a dollar.
 
Also, at the interbank market, the naira strengthened week-on-week against the greenback by N1.21 to N161.20 following dollar sale worth $18 million by Chevron Nigeria to some banks.
 
The naira also appreciated at the Bureau De Change (BDC) and the parallel market segments by N2.50 and N3 respectively.
 
“This week, we expect exchange rate stability against the backdrop of improved external reserves and likely sale by oil companies to fund their month-end activities,” analysts at Cowry Asset Management Limited stated.
 
Nigeria’s external reserves stood at $38.103 billion last Thursday.
 
 
NIBOR
 
The FMDQ OTC Plc last week commenced the restructuring of the Nigerian Inter-bank Offered Rate (NIBOR) in line with the principles for financial benchmarks of the International Organisation of Securities Commissions (IOSCO).
 
The company said  having  taken over as the administrator of the three Nigerian OTC financial market fixings(NIBOR), the Nigerian Inter-bank Foreign Exchange Fixing (NIFEX) and the Nigerian Inter-bank Treasury Bills’ True Yields (NITTY) from the Financial Markets Dealers Association  (FMDA) in 2013, it  was  poised to ensure the benchmarks comply with the new governance expectations.
 
FMDQ OTC said it was reforming the NIBOR  to ensure  that  over phased approaches,  it complies with the 19 principles of IOSCO which have been internationally adopted as the standards for financial benchmarks.
To this end, the Overnight, one month, three months and six months tenors were created.
 
However, interbank rates increased week-on-week for the aforementioned tenors.
While the Overnight tenor closed at 10.56 per cent, the one month at 12.56 per cent, the three months at 13.47 per cent, the six months tenor also closed at 14.39 per cent.
 
Furthermore, Cowry Assets analysts anticipated that this week, the market would record liquidity squeeze and further increase in interbank rates due to outflows for forex purchases and absence of major inflows.
 
Bond Market
Yields across all tenors swayed southwards last week, shedding an average of 0.1 per cent week-on-week on renewed investors’ appetite.
 
The bond market commenced the first trading day on Tuesday after the Easter break on a flat mood but subsequently became volatile on Thursday on the back of the April 2014 FGN Bonds Auction. The Debt Management Office reopened and auctioned two instruments, the 13.05% FGN Aug 2016 (TTM: 2.4years) and 14.20% FGN March 2024 (TTM: 9.11years) instruments.
 
Both auctions were expectedly oversubscribed by 300 per cent and 400 per cent respectively. The instruments were allotted at marginal rates of 13.14 per cent and 13.10 per cent lower than the 14.10 per cent and 14.2 per cent recorded in the March 2014 FGN Bonds auction.
 
The 9.25% FGN SEPT 2014, 15.10% FGN APR 2017 and 9.35% FGN AUG 2017 each declined 0.2 per cent week-on-week, while the 9.20% FGN JUN 2014 appreciated by 0.2 per cent.
 
According to analysts at Afrinvest, the increased participation in the bond market could be associated to the perceived stability in the economy as observed in key macroeconomic themes such as reversals in capital flight, a marginal accretion in the external reserve and improved oil proceeds.
 
“This influx is likely to subside in the coming week delivering a flat mood in yields,” Afrinvest added.
 
Diamond Bank
Shareholders of Diamond Bank Plc last week endorsed the plan by the bank to raise $500 million additional capital in its quest to raise its tier 2 capital by $750 million. The fund would be raised through a rights issue in ratio, terms, conditions and dates to be determined by the directors, subject to regulatory approvals.
 
The bank explained that it had already raised about $250 million out of $750 million.
Its Group Managing Director/Chief Executive Officer, Dr. Alex Otti said the fund would enhance Diamond Bank’s operations as well as its expansion drive.
 
He explained: “The capital raising is actually part of the $750 million we wanted to raise earlier. It is not that we are looking for $750 million; we already have close to $250 million.
 
“So what we are looking for is around $500 million and I don’t think shareholders have anything to worry about because we really took our time and went through the process.  I assure you (shareholders) that it is going to make the bank better, rather than dilute your shares.”
 
World Economic Forum
President Goodluck Jonathan last week reassured the global community of the safety of all participants in next month’s World Economic Forum on Africa in Abuja.
 
The president spoke when he had an audience with China’s new Ambassador to Nigeria, Mr. Gu Xiaojie, who presented his letters of credence to him in Abuja. Jonathan said the security challenges being experienced in some parts of the country would have no adverse effect on the safety of participants in the forum.
 
The president welcomed the confirmation by China that its delegation to the forum, which will bring together regional and global leaders to discuss innovative structural reforms and investments that could sustain the continent’s current growth trajectory and create jobs, will be led by Premier Li Keqiang.
 
 
AMCON
The International Monetary Fund (IMF) last week advised the federal government to extend the period for winding down the Asset Management Corporation of Nigeria (AMCON).
 
In its latest Staff Report, which was presented in Washington DC, the IMF said extending the period for winding down AMCON would enable the country reduce costs if a similar institution is required in the future.
 
AMCON no longer buys non-performing loans (NPLs) and has a financing plan of 10 years.
 
“They expressed a preference, however, for a longer period for winding down AMCON than the proposed sunset of clause of 2017 as recommended in the Financial Sector Assessment Programme (FSAP), and maintaining an inactive ‘shell’.
 
“In principle, this would allow them to reduce future costs in the event of need for a similar institution. The authorities agreed with the need to continue to strengthen the prudential framework and expressed interest in additional Technical Assistance (TA) on Financial Soundness Indicators,” the report stated.
 
According to it, the Nigerian financial system has been resilient to shocks, adding that further actions to implement the key recommendations of its 2012 FSAP update could further strengthen financial stability.
 
AfDB Loan
The Federal Executive Council (FEC) last week gave approval for a loan of $152.12 million and a grant of $385,000 from the African Development Bank (AfDB) to support the agricultural transformation agenda of the federal government.
 
The Minister of Agriculture, Mr. Akinwumi Adesina, said the approval of the loan by the AfDB was as a result of the progress Nigeria had made in the sector.
 
“We promised that we will add 20 million metric tonnes of food to our domestic food supply by 2015. As of now we have done 15 million metric tonnes.
 
Despite the progress made do far, there are a number of challenges that we have seen in the rural areas one of those is the low level of agro processing,” he said.
He added: “We have also poor rural infrastructure which make it difficult for farmers to evacuate their produce.”

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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