Naira Gains on Increased Dollar Supply

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Read Time:1 Minute, 24 Second

 The naira gained 0.11 per cent against the United States currency on the interbank market yesterday, supported by inflows from lenders selling dollars to stay within a regulatory limit for holding hard currencies, dealers said.

The unit closed at N161.90 to the dollar, up from N162.07 it closed on Friday, Reuters revealed.

The naira eased to a five-week low against the greenback two weeks ago but recovered some ground last week after dollar sales by some oil companies, including state-owned energy firm NNPC.

Dealers expect some oil companies to supply dollars this week, meaning that the naira may see further support.

Nigeria’s inflation rate advanced for a fifth month in July, to 8.3 per cent from 8.2 per cent a month earlier, the National Bureau of Statistics said yesterday.

Analysts argued that the overall details of the inflation figures suggest that inflationary pressures may be moderating.

“Surprisingly, given the overlap between Ramadan and July, food prices did not appear especially pressured.  (This is not atypical for Nigeria which tends to buck the global trend in this respect).

“There are some signs that core inflation is moderating.  Core CPI eased to 7.1 year-on-year in July, rising only 0.2 per cent month-on-month. This was due to slower price increases in a range of items – including clothing and footwear, housing, water and electricity and gas and other fuel.

“With 12 months inflation running at eight per cent in July, we see little change in policy soon, despite still-liquid market conditions,” Managing Director/Head, Africa Research, Standard Chartered, Razia Khan noted.

About Post Author

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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Index Declines as Bearish Trend Persists at Stock Market

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Read Time:1 Minute, 54 Second

 Trading at the stock market continued with its bearish trend yesterday as investors’ sentiments remained negative. As a result, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) shed 0.02 per cent to close at 41,370.24.

The market closed 2.86 per cent lower last week as investors reacted negatively to weak six months financial results of some companies.
When trading resumed for the week yesterday the negative trend persisted as the ASI declined further, while volume and value of trading also fell.

Although the ASI declined marginally by 0.02 per cent to close at 41,370.24, the year-to-date (YTD) return of the ASI depreciated 0.10 per cent.

Apart from the NSE Oil and Gas Index, other major NSE indices closed negatively. The NSE Oil and Gas appreciated by 0.86 per cent. However,  the NSE 30, NSE Banking Index, NSE Insurance Index fell by 0.05 per cent, 0.14 per cent and 0.03 per cent respectively.

A further analysis of the trading yesterday showed that 27 stocks depreciated in price, while 22 appreciated, while volume and value of trading went down by 63 per cent and 19 per cent respectively.

Flour Mills of Nigeria Plc led the price losers with 7.3 per cent to close at N68.11 per share. Fortis Microfinance Bank Plc trailed with 5.0 per cent, while Vitafoam Nigeria plc shed 4.7 per cent. Japaul Oil,  R.T Briscoe Nigeria Plc, Wema Bank Plc and Fidelity Bank Plc depreciated by 3.7 per cent, 3.2 per cent, 3.1 per cent and 2.5 per cent in that order.

On the other hand, Premier Breweries Plc led the price gainers with 9.1 per cent, trailed by Pharma Deko Nigeria Plc with 4.8 per cent. Cement Company of Northern Nigeria Plc chalked up 4.6 per cent, just as Neimeth International   Pharmaceutical Plc and Learn Africa Plc went up by 4.5 per cent and 3.8 per cent respectively.

Meanwhile, investors traded 117.831 million shares worth N2.119 billion exchanged in 4,484 deals, compared with 481.655 million shares valued at N2.637 billion traded in 4,368 deals last Friday.

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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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Mansard Insurance, Beta Glass Report Lower Profits

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Read Time:1 Minute, 59 Second

 Mansard Insurance Plc and Beta Glass Plc yesterday announced their financial results for the half year ended June 30, 2014, showing reduced bottom lines. While the insurance company reported a decline of 56 per cent in profit, Beta Glass posted a decline of 23 per cent.

An analysis of results of Mansard Insurance indicated that the underwriter ended the half year with gross premium of N9.6 billion, up by 27 per cent from N7.54 billion in the corresponding period of 2013. Net premium earned stood at N4.5 billion in 2014, compared to N3.5 billion in 2013.

However, management expenses and provision for doubtful accounts rose by 15 per cent from N1.758 billion to N1.999 billion. Profit before tax declined by 52 per cent from N2.1 billion to N993 million, while after tax dipped by 56 per cent from N1.842 billion to N814 million.

Market operators said given the half year results, the company may end the  2014 with lower profit compared to 2013 when  it posted a growth of 31 per cent in profit. Mansard Insurance had ended 2013 with profit after tax of N2.1 billion.

Commenting on the 2013 results, the Chief Client Officer, of Mansard Insurance, Mr Tosin Runsewe  had said “We achieved growth in a rather difficult year where the industry experienced a decline in growth rate. Growth was stifled by the ‘No Premium, No Cover’ regulation.

"The institutional end of the market was most affected. On the other hand, we had a much better cash flow into the business reflecting our compliance with the regulation.”

Meanwhile, Beta Glass Plc reported revenue of N3.915 billion, indicating a growth of 14 per cent from N3.449 billion in the corresponding period of 2013. Cost of sales rose by 20 per cent from N2.5 billion to N3 billion. Administrative cost equally went up from N303 million to N390 million, leading to a decline of 15 per cent in operating profit from N598 million to N505 million.

Finance cost rose by 78 per cent from N98 million to N175 million, making the company to end the period with a profit before tax of N479 million, as against N625 million in the corresponding period of 2013. Profit after tax fell from N448 million to N344 million.

About Post Author

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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NIGERIA: Royal Father Commends Jonathan on Onne, Eleme, East West Road

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Read Time:2 Minute, 46 Second

The Supreme Council of Traditional Rulers of Ogoni has commended President Goodluck Jonathan for the directive to the Minister of Works, Mike Onolomeme to commence the immediate reconstruction and rehabilitation of the Onne Junction road to Port Harcourt and the Onne Junction Road to Akwa Ibom.

In the commendation letter signed by Gbenemene of Tai Kingdom, King GNK Gininwa who is also the President Supreme Council of Traditional Rulers of Ogoni and Chairman of Rivers State Council of Traditional Rulers, he said that the singular action of President Jonathan had succeeded in reducing the suffering of Nigerians and companies in the area.

According to a copy of the letter obtained by THISDAY, the Gbenemene of Tai Kingdom said, “For and on behalf of the traditional rulers, people and opinion leaders of Andoni, Eleme, Gokana, Khana, Ogu/Bolo, Opobo/Nkoro, Okrika and Tai Local Government Areas of Rivers  State representing ourselves and our different peoples and being direct beneficiaries of the above named section of the East West road, do hereby thank Your Excellency for the directive given to the Minister of Works for the immediate rehabilitation of this segment of the East West Road to ease the sufferings of the people and companies that ply the road.”

The Chairman of the Rivers State Council of Traditional Rulers listed the companies that are the immediate beneficiary of the Onne Junction to Port Harcourt road to include, Indorama Eleme Petro Chemical Company, Intel Logistics Company, Port Harcourt Refineries, Dangote Cement Company, Federal Lighter Ocean Terminal Ports among others.
He also commended the developmental strides of President Jonathan and prayed that God would give him courage and wisdom to face the challenges in the country, especially, the security issues.

Delegates at the National Conference had before they adjourned on July 13, complained about the state of the roads, as the East West Road was still under construction and that the rainy season was not helping vehicular movement in and within the main cities of the Niger Delta.
THISDAY was informed that President Jonathan directed the Minister of Works to commence immediate rehabilitation of the two Trunk A Roads.

The Onne Junction to Akwa Ibom is a 99 kilometer road network. The road design, it was gathered was not aimed at carrying heavy vehicular movement, hence the heavy traffic jam. The rehabilitation contract was awarded to RCC Nigeria Ltd. Upon completion, the Onne Junction to Akwa Ibom would be a three carriage road.

In the same vein, the President directed that the Onne Junction to Port Harcourt road network should commence an immediate rehabilitation.  The road that has become a subject of campaigns by the opposition political parties was abandoned by Julius Berger Construction Company due to incessant kidnap of its workers last year and this has affected vehicular movement due to constant traffic jams.

According to a Presidency source that spoke to THISDAY on the Presidential orders on the roads, said, “This is an indication that the President would not play with the recommendations of the national conference, especially as it relates to administration issues.

“As we talk, RCC is gradually mobilising to the site for the roads rehabilitation”, explaining that the roads upon completion would aid the free movement of vehicles, as the month of December is fast approaching.

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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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Domestic Tourism Gets a Boost as NTDC Launches Tour Abuja City Project

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Read Time:5 Minute, 45 Second

 Every mega city that prides itself high in tourism has tour city buses. From London to Cape Town to Washington to Sydney, these tour city buses have become mini-monuments that appeal to both locals and visitors alike. Tour city buses whether in open-top double-decker or conventional style is one of the best ways to take in the highlights of any city and an elevated view of your surroundings. So, it is a thing of huge pride to learn that next month, the city of Abuja will start its own Tour Abuja City Project.
As a domestic tourism enthusiast, I am of the belief that charity begins at home and there is no better place to show this than putting our money where our mouth is.

With over 7,000 tourist sites and 4,279 hotels in the country, we can definitely get it right with domestic tourism despite our security issues. But questions even the most ardent pro-domestic tourism person will ask remain what state are these sites in? How secure are these sites? Am I getting value for my money from these hotels as I will do in other countries? Will getting there be more of stress than ease? All these questions have to be answered to propel domestic tourism in the country. It’s another summer period and the aircrafts are full to the brim with Nigerians traveling for their summer holiday with millions being expended on ticket fees, hotel and shopping bills. Such major revenue if spent internally can boost our economy, no doubt, out of 170 million Nigerians, if just 20 million Nigerians travel within Nigeria, we would have potential revenue of $4billion. That is something to think about as it will affect all sectors of the economy positively.

So, I was very happy when this was disclosed during the opening ceremony of a two-day NTDC staff retreat, held at the Village Hall of the corporation in Abuja. It was organized to equip the staff on how to generate revenue, as well strengthening their capacity for enhanced service delivery to tourism stakeholders. This is another brilliant initiative of the DG of Nigerian Tourism Development corporation,  Sally Mbanefo who believes in capacity building for staff. She said, “I appreciate the fact that staff of the NTDC, the implementers of the corporation’s strategic imperatives, are the core stakeholders in the industry, hence, they must be well equipped and practically made ambassadors of the Nigeria’s tourism industry to drive development in the industry. We must feed the goose that lays the golden egg. As a result, capacity building and staff welfare are the priority on my agenda in repositioning the Nigeria’s tourism industry and promoting domestic tourism in the country.
Meanwhile, the Tour Abuja Project is as a result of Memorandum of Understanding (MOU) between the Nigerian Tourism Development Corporation (NTDC) and ABC Transport on promotion of domestic tourism in Nigeria.
The Tour Abuja Project, according to Mbanefo, is to market tourist sites in Abuja, thereby encouraging residents in the city to visit tourist sites therein. She disclosed that ABC Transport had assigned two sight-seeing buses to the project to take Abuja residents from one tourist destination to the other, adding that these buses will pick people from nine designated bus stops to 24 tourist sites/landmarks in Abuja city.

A lot of responsibility comes with such projects on both sides, that is the regulator and the administrator and we cannot afford to get it wrong. The administrator must see to it that it runs professionally with professional and courteous drivers. The buses must be always clean and on schedule. The regulator must insist on professional tour guides who are conversant with these sites and their histories. Both parties must work towards making this a success. We have the large number of citizens to make domestic tourism a resounding success. If we get it right, we can increase the number of tour buses and have night city tours as done in other countries.
But I guess some of the questions I asked in the early paragraphs have been answered already with Mbanefo’s approach to achieving the domestic tourism development and promotion in Nigeria. It is very important to ascertain what state these sites are in before we even start promoting them.
The NTDC boss, earlier in her paper presentation titled, “Promoting Domestic Tourism: Tool for National Economic Development,” described budgetary allocation as the major problem facing the corporation, which according to her, if solved, will enable the corporation properly train its staff; regularly collaborate with the private sector operators in forging new ideas for the sector, and effectively market and promote Nigeria locally to boost domestic tourism. However, she maintained her stand on improving staff welfare amongst other things.  “Why all the tourism master plans we have been having in the country did not work is that they abandoned the staff, and pay no or less attention to the welfare of the staff, that are going to drive the project, direct the strategic imperative of the organization,” she disclosed.

With projects like these, domestic tourism has definitely gotten a boost and I look forward to August when I can ride on it and write about it.
Still in the same vein, NTDC of recent  signed a pact with The Gambia Tourism Board to propel a rapid development and best practices in the Nigeria’s tourism industry.
Mbanefo, while speaking during the signing of the Memorandum of Understanding (MoU) at the corporation’s Lagos office, pointed out that the partnership between NTDC and The Gambia Tourism Board was a landmark momentum in the tourism industry in West Africa, as the partnership will also develop and promote a sub-regional tourism brand.
She said: “Nigeria is a catalyst in the development of tourism in West Africa. We have the population, which is a great lubricant in the wheel of developing tourism. We also have the political will to explore the potentialities of the industry.”
The Gambia has an  track record of beat practice in the industry. As a result, partnership with The Gambia will enable us to exchange notes, programmes, and share best practices.

Permanent Secretary of The Gambia Ministry of Trade, Mrs Naffie Barry, said that The Gambia, though advanced in tourism, was yet always ready to improve. “This partnership will ensure this. It will promote regional integration. Hence, The Gambia can promote herself in Nigerian and Nigeria can also promote herself in The Gambia. We shall implement the partnership. The partnership should not be seen as between The Gambia Tourism Board and Ministry and NTDC, but as between the two countries. The partnership will not only be a blessing to the two countries, but also the whole of Africa.”

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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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Over 100,000 Farmers Get Farm Input in FCT, 987 Barred

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Read Time:3 Minute, 39 Second

 About 987 out of the 110, 000 small holder farmers who registered under  the Growth Empowerment Support (GES) Touch and Pay pilot scheme in the Federal Capital Territory (FCT) were prevented from getting farm inputs.

The agricultural inputs, which include fertilisers, seeds and urea, were distributed to farmers  via the GES-TAP technology facilitated by the International Fertiliser Development Centre (IFDC) in conjunction with Consult Hyperion.

Zonal Coordinator of IFDC in AMAC/Bwari Area Council,  Ms. Patience Adamade, stated that the 987 farmers were denied access due to complicities in their registration records.

She explained that some of the farmers might have registered more than once, which would automatically prevent the database from reflecting their identities.

Adamade however said efforts would be made to rectify the  problem.

"The farmers receiving inputs here today were registered during the enumeration window and about 110, 000 of them were captured. Any farmer with a TAP card is eligible to redeem inputs from any of the centres where he is mapped based on his or her ward. Each farmer is entitled to a 50kg bag of NPK, 50kg bag of urea and either maize or rice.

“The GES/TAP issues cards to registered farmers during the enumeration phase, and computer tablets were given to agro-dealers prior the redemption exercise to facilitate the process. We are not particular about you having a farmland. It is open to anybody who wishes to start farming," she said.

According Adamade, about 75 per cent of registered farmers had redeemed their inputs while those that were yet to claim theirs had been contacted by the centre.

“For the various wards mapped to a redemption centre, our system tells us the percentage of farmers that have redeemed their inputs in each of them. So for wards that have not redeemed a good percentage, we have what we call mobile redemption. We move our redemption centres to those wards to enable them come out if proximity to the centres is a challenge," she added.

Representative of Federal Ministry of Agriculture and Rural Development, FCT Office, Mr. Maiyaki Madaki, said the new GES/TAP technology was an improved method of distributing inputs to farmers.

“The GES is a programme of the federal government and the states, the idea is to enable the farmers redeem their inputs. This year the GES/TAP was introduced, and unlike the former system, GES/TAP can operate in places where there is no mobile network.

"The former system couldn’t work in areas that don’t have network, but with this scheme you can identify the farmers easily and get their inputs across to them,” Madaki said.

Meanwhile, Farmers at the Tungamaji redemption centre, in Gwagwalada Area Council have appealed to the federal government to increase the quantity inputs made available to them under the scheme.

The Sarkin Noma (Chief of farmers) of Tungamaje, Alhaji Salihu Na’anabi, who spoke through an interpreter, explained that there was  tremendous improvement since in the input redemption system with GES-TAP technology, thereby appealed that more inputs be provided.

"We want each registered farmer to get two bags of fertiliser, because one is not enough. We are appealing to the government to supply more so we can pay for more than two bags, we are the ones feeding the population, large scale farmers only deal with food factories," he said.

Adding that, that system of registration of farmers and redemption of farm inputs under the GES-TAP as being implemented by IFDC and Consult Hyperion is better, compared to the GES that we use to know in terms of fertiliser and seed distribution.

"As chief of farmers in Tungamaje, I have collected my farm inputs without stress. We can see transparency in the redemption process and it is well coordinated."

He also appealed to IFDC to recruit more man power so as to ensure effective and speedy discharge of their duties.

“We want to appeal to IFDC to send more registration officers to the field for this exercise, in term of registration and redemption because we have a large population of farmers here in Tungamaji as most of the people living here are farmers. We want them to meet the challenges of registration," he stated.

About Post Author

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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Union Bank to Improve Customer Service through Branch Upgrade

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Read Time:2 Minute, 11 Second

 Union Bank of Nigeria Plc (UBN) will upgrade 60 of its branches in order to adequately serve its customers.  The Group Managing Director of UBN, Mr. Emeka Emuwa, who disclosed this in a report obtained by THISDAY, noted that the move is part of the key priorities of the bank in 2014.

According to him, UBN’s customer experience is critical to its success and the bank would continue to improve its operational and service effectiveness to allow it become competitive in the industry.

“Our key priorities for 2014 will include: enforcement of our redesigned model to focus on retail, commercial and corporate business segments. Optimisation of our branch network which would see over 60 branches in key locations upgraded in order to adequately serve our customers,” Emuwa said.

He added that the bank will increase customer touch points vial electronic platforms such automated teller machines(ATMs), point of sale(POS) mobile and online banking, which will simply customers banking experience.

“We will upgrade our bank-wide information technology (IT) infrastructure to enhance service delivery and increase reliability, roll out of a revitalised brand that reflects our strategy and renewed positioning. We will also complete the divestment process from portfolio companies to ensure core focus on our commercial banking business,” Emuwa said.

The UBN boss had said the bank’s main priority was to improve its efficiency by addressing operational challenges and implementing cost optimisation initiatives.

He said the   second priority was to develop medium term strategy which  clearly outlined a road map to realising the bank’s ambition to be a highly respected provider of quality banking services. Emuwa declared that the bank made considerable progress on both fronts.

Shareholders of UBN recently   approved the request of the directors of the bank to raise about $750 million (N120 billion)  capital.
Chairman of UBN, Udoma Udo Udoma  explained that  the fresh capital would facilitate the  execution of the bank’s  new strategies.

According to him, UBN finalised its three year strategy which provided a clear direction for its future growth in line with the on-going transformation programme.

“Union Bank aspires to be a highly respected provider of quality banking services, and to achieve this, the bank has identified six core areas, which are pivotal to tis success-the quality of our customer experience, the quality of our client base, the quality of our talent, the quality of our banking platform and our professional standards and the quality of our earnings,” Udoma said.

About Post Author

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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NIGERIA: CIBN Harps on Improved Human Capital

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Read Time:1 Minute, 59 Second

 The Lagos State branch of the Chartered Institute of Bankers of Nigeria (CIBN) has stressed the need for banks and other financial institutions to pay greater attention to the quality of human capital in their organisations.

The Chairman, Lagos State branch, CIBN, Mr. Bolade Agbola, said this while briefing the media on the institute’s forthcoming ‘bankers’ nite’ titled: “Human Capital: Value Creation and Capacity Building for Financial Services Sector in a Frontier Economy,” scheduled to hold on July 24th.

Agbola noted that the issue of human capital in the financial sector is very important because in the past 10 years the Nigerian economy has gone through the cycle of boom, doom and recovery, but with little attention paid to human capital.

“If you look at the population of bankers in 2004 and the population of bankers today, there are lots of differences. We have transmuted from the era of a one-man banks to professionals-run banks. We believe that having gone though this stage, it is good for us to take stock.

“We need to reposition the banking industry to face the new era of boom that is imminent and to face the challenges of being classified as a frontier economy,” he added.   

According to the Lagos CIBN boss, the choice of the topic cannot be over emphasised as the institute strives towards boosting the tenets of professionalism and ethical standards in the financial industry, bridge skill gap and restore the trust and nobility for which the banker is traditionally noted for.

Furthermore, he pointed out that the CIBN Act which states that “any bank staff who did not qualify as ACIB cannot hold certain sensitive positions in a bank,” further supports the drive for professionalism in the industry.

“The branch in its usual stride is at the fore front of propagating the mandate of the institute through lectures, seminars and publications for all these categories.

“This year’s event provides an opportunity for exchange of ideas especially regarding the issue of manpower development which we believe is a critical factor to drive other elements for a sustainable growth in a frontier economy as ours.

“It is also an avenue for bankers to interact with one another and network with the Nigerian business community,” he said.

About Post Author

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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Expert Decries Low Financial Sector Contribution to GDP

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Read Time:2 Minute, 10 Second

 The Head, Global Research, Standard Chartered Bank, Razia Khan, has expressed concern over the relationship between growth in the financial sector and Nigeria’s gross domestic product (GDP).

She pointed out that Nigeria’s financial sector growth has been volatile.
The sector’s growth contracted immediately after the banking crisis and had posted a recovery later. However, grew at an average of only 0.9 per cent between 2010 and 2013.

This, Khan noted, comes “as something of a surprise.”

“This is atypical, and does not match the kind of relationship one would normally expect to see between growth in the financial sector and overall GDP.

“While Nigeria-specific issues are likely to have been a key influence, one would hope to see a normalisation of the relationship between financial sector growth and GDP growth over time,” she stated in a report to THISDAY at the weekend.

Nigeria’s real GDP was revised downwards to 5.49 per cent in 2013 from the projected 7.41 per cent earlier announced in the April rebasing exercise undertaken by the National Bureau of Statistics (NBS).

In its revised and final GDP rebasing results by output released at the weekend, the NBS also showed that the Nigeria’s real GDP output at constant price in 2013 stood at $407.85 billion (N63.218 trillion).

When the NBS released its rebased figures last April, the country’s nominal GDP output in 2013 was put at $510 billion (N79.050 trillion).

Continuing, Khan noted that latest GDP data was “not a surprise.”

Nigeria’s 2012 GDP was revised down to 4.21 per cent from an estimated 6.5 per cent previously. The data confirmed that first quarter 2012 exhibited particularly weak levels of activity.

“This reflects the slowdown that we observed in the immediate aftermath of the attempt to remove fuel subsidies in full, when activity was disrupted by protests initially, a worsening security situation, and the slow passage of Nigeria’s budget for that year.

“Even though the quarterly breakdown still suggests an acceleration of GDP over the course of 2013  (from 4.45% in Q1 2013 to 6.77% by Q4 2013), the average growth rate for 2013 is revised down to 5.5 per cent from about 7.3 per cent with the initial, rebased estimates.

“The immediate market impact of this data release is expected to be minimal.  In the past, Nigerian GDP data was more guesswork than anything robust,” she stated.

About Post Author

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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NIGERIA: UBA Maintains Steady Loan Growth

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Read Time:2 Minute, 18 Second

 United Bank for Africa Plc’s (UBA) audited 2013 full year results has shown the bank has maintained an incremental loan growth in the last four years.

The bank’s five-year financial summary reflected a steady, but gradual increase in its loan book. It showed that its loans and advances to customers climbed by 58 per cent in the past four years, to N937.620 billion in 2013, as against the N590.797 billion recorded in 2010.

The bank has continued to increase loans to consumer, upstream oil and gas, manufacturing and the telecoms sectors. In fact, this made up 70 per cent of its loan books in 2013.

Similarly, its customer deposit has climbed steadily in the last five years by 61 per cent, as it stood at N2.161 trillion in 2013, compared to the N1.245 trillion recorded in 2009.

According to Afrinvest Securities, “UBA remains a strong corporate force in the industry as evidenced in its 2013 results despite beckoning tight regulatory environment.

“We maintain our N279.4 billion and N49.4 billion 2014 estimates for gross earnings and profit after tax representing 5.6 per cent and six per cent growth respectively.

“Based on relative valuation, UBA currently trades at a marginal discount to its peers with a trailing P/E and P/BV multiple of 5.0x and 1.0x, compared to industry average of 6.7x and 1.1x respectively,” Afrinvest added.

However, UBA’s 2013 results showed that its gross earnings was up by 20.2 per cent year-on-year to N264.6 billion in the year under review, from N220.1 billion in 2012, the bank’s profit after tax was down by 14.9 per cent year-on-year to N46.4 billion from N54.8 billion in 2012.

The growth in gross earnings was achieved on the back of a 23.8 per cent year-on-year growth in interest income in 2013.

UBA’s Group Managing Director/Chief Executive Officer, Mr. Phillips Oduoza said the 2013 results was largely driven by the surge in deposits.
Oduoza said the bank has slowed down its aggressive expansion across the continent as it consolidates its operations in 19 different countries and meets commitments to fund large power projects in Nigeria.

"We were expanding very rapidly and we initially thought we would expand further in Africa, but we've decided to stop and focus on consolidation," Oduoza said, adding that this was also why a proposed $500 million Eurobond was shelved.

He had added: "We have 700 branches. That's a very large network. We've covered the major economies in sub-Saharan Africa.”

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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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