Nigeria central bank floats embattled Naira currency » TODAY.ng. Nigeria will float its embattled naira currency, the Central Bank governor announced Wednesday after months of pressure to control a spiraling crisis in Africa’s biggest economy. Gov. Godwin Emefiele told reporters the naira rate will be “market-driven” from June 20. Critical foreign currency shortages caused by slumping oil prices forced a policy change that President Muhammadu Buhari for months had resisted.
The bank had defended the naira at a rate of 197 to the dollar while the currency was trading at up to 370 on the parallel market . Emefiele indicated a floating naira should abolish a system that encouraged speculators. There will be only one exchange rate in “an open, transparent system,” he said. Companies have gone bust, tens of thousands of workers have lost their jobs and militant attacks have shrunk oil production as Nigeria’s economy contracted for the first time in nearly 20 years. Analysts warn of expected interest rate hikes to tackle double-digit inflation. Lagos State Gets 77% Of Bank Credits In 2015. The level of concentration of banking services in Lagos has become evident with the state accounting for 77 per cent of credit given out by banks last year, data from the National Bureau of Statistics has shown. According to the NBS, a tonal of N13.12 trillion credit was given out by banks in 2015 with N10.128 trillion of that amount given out to Lagos state.
Data given out by the NBS in “Bank Credit and Deposit by States in Nigeria 2010-2015” document made available on its website revealed that banks received N17.175 trillion as deposits from customers in 2015. Of this figure, bank customers resident in Lagos deposited N10.128 trillion representing 50 per cent, followed by the Federal Capital Territory, Abuja which accounted for N2.304 trillion of the deposits while Rivers state customers deposited N1 trillion. The data by the NBS reveals the level of concentration of banking services and funds in Lagos which is the commercial hub of the country. Nigeria says it has recovered $9.1 billion in stolen money and assets. Nigeria's government has recovered $9.1 billion in stolen money and assets, its information and culture minister said on Saturday, as its corruption crackdown continues against the backdrop of the country's worst economic crisis in years. President Muhammadu Buhari, elected last year largely on his vow to fight corruption, has vowed to recover "mind-boggling" sums of money stolen from the oil sector and said public coffers were "virtually empty" when he took office last May.
Since then the country has endured an economic crisis caused by the sharp fall in global oil prices, making the need to recoup lost money more acute. Crude sales account for around 70 percent of national income. In a statement, Information Minister Lai Mohammed said cash and assets recovered between May 29 last year, when Buhari took office, and May 25 this year totaled $9.1 billion. It was not immediately clear how much outstanding money in total is still being sought by the government. INFOGRAPHICS: FG's interim report on recovered loot | Punch Newspapers. Nigerian Insurance Sector Listed Among Top 10 African Insurance Markets. By Ebere Nwoji Nigeria has been enlisted among top 10 African insurance markets,excluding South Africa, whose Non- Life Insurance Premiums, dominated African Insurance sector with market size of over US$ 1 billion each in 2014.
Other countries enlisted in the achievement are Morocco,Algeria,Kenya,Egypt,and Angola. These countries, are next to South Africa,in terms of premium generation in Non- Life business; although at a large distance. Among the 10 countries, Nigeria ranked third with overall premium income of N386 billion (over Us$1billion). South Africa,dominates Africa's insurance markets both in life and non-life business. Disclosing this at the 43rd African Insurance Organisation'sConferece and General Assembly holding in Marrakech, Morocco, outgoing President of AIO, Mrs.Lamaia Ben Mohmoud, said African insurance premium volume in 2014, totaled US$ 69billion, showing a slide from US$ 72 billion level in 2013.
"Insurance premiums, accounted for 2.8% of African GDP in 2014. FG Targets 87% Increase in Non-oil Revenue - FINANCIAL WATCH. The Federal Government has projected its non-oil revenues to double in 2016 as it seeks to offset the lingering plunge in oil revenues, Reuters report. Funding of the 2016 budget with an expected deficit of N2.2 trillion has been so far unclear. The government expects to generate N3.38 trillion this year from non-oil sources, up by 87 per cent from N1.81 trillion in 2015, the presentation showed. The government said the N6.06 trillion budget would stimulate the economy, which has been hammered by a fall in oil exports that had made up 70 per cent of state income. Corporate income tax collection is expected to exceed the N700 billion generated last year, while the government also aims to recover stolen Nigerian assets stashed abroad as part of efforts to crack down corruption, it said.
The government plans to squeeze informal small traders who make up almost half of GDP, this year to boost tax revenues by 33 per cent. “It will be good to have more people invest in the local bond market. Chinese Yuan accounts for 6.7% of $27.34b forex reserves. Chinese Yuan constitutes only 6.7 per cent of Nigeria’s $27.34 billion foreign exchange (forex) reserves, data from the Central Bank of Nigeria (CBN) has shown.
The figure indicted that the US dollar constitutes 76.6 per cent of the total, having fell from its level of $22.59 billion in September last year to $21.67 billion in December. Other currencies in the basket and their shares include Saudi Riyal (SDR) worth $2.32 billion; (8.2 per cent), Euro worth $1.69 billion (six per cent), and British Pound Sterling worth $688.18 million (2.4 per cent). The report titled: Currency Composition of Foreign Exchange Reserves indicated that forex inflows to the economy in December last year stood at $20.2 billion as against $27.3 billion recorded in September, representing a decrease of 25.76 per cent.
While in the corresponding quarter of 2014, the recorded inflow was $37.01 billion, indicating a major decrease of 45.2 per cent. ‘Nigeria’s pension fund to hit N20tr’ Nigeria’s Pension fund will hit the N20 trillion mark in the next eight years from the current N5.3 trillion, Chairman, Pension Fund Operators Association of Nigeria (PenOp), Longe Eguarekhide has said. He gave this projection while speaking at the Pension Industry Operators 2016 media retreat organised by PenOp in Lagos. Eguarekhide, who is also the Managing Director of AIICO Pension Managers Limited, stated that pension fund managers priority is ensuring that the funds are safe. He stressed that the group will not compromise in protecting the accumulated asset from contributors and would guard its safety jealously. He added that the funds will only be invested in wise and profitable investments, adding that new ways growing the fund will be developed. He said the little challenge on accrued rights would be resolved when the government settles down fully, adding that the government before now has been faithful to its pension responsibilities.
Nigerian financial system strategy 2020. Nigeria's banking sector looking ever healthier after recovering from the last crisis | Nigeria 2015. Nigeria’s banks have been through some challenging times in recent years, but for all their travails, they have turned in an impressive performance and continue to present a compelling narrative to foreign investors. However, the challenging times are not over just yet. West Africa’s largest banking sector – accounting for 74% of regional banking assets and now fully recovered from its last crisis in 2009 – is facing structural changes that affect its traditional profitability drivers.
Regulatory reforms that have an impact on both interest margins and fee income are pushing banks to specialise as well as enhance their outreach and lending. The recent benchmark interest rate hike on the part of the Central Bank of Nigeria (CBN), to 13%, and the devaluations of the naira, down by nearly 30% in just three months to $1:N198, are likely to affect debt servicing on loans denominated in foreign tender (see analysis). Promise At the same time, there is certainly room for growth. Performance. Banks 2015 Audited Results: ZENITHBANK, ACCESS Top on Earnings. Lagos State Gets 77% Of Bank Credits In 2015. Nigeria: Country to Include Yuan in Its Foreign Reserves. Photo: Premium Times President Muhammadu Buhari speaking at the Official Opening Ceremony of the China-Nigeria Business Forum in Beijing, China.
Africa's biggest economy Nigeria agreed Tuesday to include China's yuan currency in its foreign reserves as Beijing seeks closer ties and greater political and economic heft on the resource-rich continent. At a signing ceremony in Beijing, Presidents Xi Jinping and MuhammaduBuhari presided over the signing of six agreements. They covered industrial activity, aviation and infrastructure investment cooperation between the world's second largest economy and Africa's most populous nation, which has struggled in the face of plunging oil prices and an $11 billion budget deficit this year.
The Nigerian central bank and the Industrial and Commercial Bank of China signed an agreement allowing transactions to be conducted in yuan and for the currency to be included in Nigeria's foreign exchange reserves. Nigeria Agrees Currency Swap With China to Shore up Naira, Help Fund Deficit. Political risk consultancies estimate at 60 to 65 percent the odds of impeachment clearing the lower house, since the committee vote was expected to sway undecided lawmakers to join the opposition.
While Rousseff fights for her political survival, her government is largely paralyzed as Brazil, the world's seventh-largest economy, struggles with a deep recession and its biggest-ever corruption scandal. "They now are conspiring openly, in the light of day, to destabilize a legitimately elected president," Rousseff said in a speech on Tuesday, referring to an audio message sent by Vice President Michel Temer to his supporters on Monday in which he called for a government of national unity to overcome Brazil's political crisis.
The congressional committee's 38-27 decision was backed by Temer's PMDB party, formerly her main coalition ally. The party's defection last month greatly increased the likelihood the lower house will send her impeachment to the Senate. Counting vote by vote Reuters. Again, Nigeria’s reserves rise for 4 days in a row. The Central Bank of Nigeria (CBN) has recorded fresh rise of foreign reserves for four days consecutively – for only the second time since President Muhammadu Buhari took office. As at March 22, 2016, the foreign reserves had experienced a rise of $34.7 million in four days, rising from $27,853,597,008 on March 16 to $27,888,285,805 by March 21. By February 22, the reserves had a rise of $13 million while finding its way out of 11-year low positions. The first consecutive rise started on Thursday February 24, from $27.804 billion to $27.823 billion as at February 29, surging gradually through the days in-between.
The rise has been attributed to a gradual recovery in oil prices and strict restrictions of capital flow. After rising by $350 million in August 2015, the foreign reserves have not experienced any of such huge leaps in 6 months, with a meagre rise of $32 million in February 2016. “As we speak, I understand that our forex inflow is under $1 billion,” he had said. Nigeria records 108% foreign portfolio deficit. •Domestic investors regain confidence For every dollar brought into Nigeria this year, more than $2 has been taken out according to a report on foreign portfolio investment (FPI). A year-to-date report on FPI obtained at the weekend, indicated that Nigeria suffered a net deficit of 108 per cent in the first two months of the year.
The FPI outflow worsened in February, as uncertainties persisted over Nigeria’s foreign exchange management. The report, coordinated by the Nigerian Stock Exchange (NSE), showed that FP outflow outpaced inflow by 108 per cent. The two-month report showed that foreign outflow totalled N58.20 billion as against foreign inflow of N27.95 billion. Total foreign transactions of N86.15 billion represented 42.8 per cent. Domestic investors, however, appeared to be stepping in to fill the gap left by the foreign investors. Monthly analysis showed that FP outflow totaled N31.84 billion as against inflow of N10.94 billion. Total foreign transactions thus were N43.37 billion. Use of electronic payment adds $296bn to GDP – Report. By Providence Obuh A recent study has shown that increased use of electronic payment products, including credit, debit and prepaid cards, added $296 billion to GDP, while raising household consumption of goods and services by an average of 0.18 percent per year. The study “The Impact of Electronic Payments on Economic Growth”is a 2016 study conducted by Moody’s Analytics that analyzed the impact of electronic payments on economic growth across 70 countries between 2011 and 2015.
In addition, Moody’s economists estimate that the equivalents to 2.6 million new jobs were created on average per year over the five years period as a result of increased use of electronic payments. The 70 countries in the study make up almost 95 percent of global GDP. Chief Economist of Moody’s Analytic, Mr. Mark Zandi, said, “Electronic payments are a major contributor to consumption, increased production, economic growth and employment creation.
Also speaking, Chief Executive Officer, Visa Inc. Stocks: 18 firms declare N321bn dividends. Nigeria ‘loses $2.9bn to tax incentives’ Tunde Aremu, campaign manager of Action Aid, a non-governmental organisation (NGO), says tax incentives to multinational companies cost Nigeria about $2.9 billion on an annual basis. Aremu said this in Abuja on Thursday during a visit to Odeneye Kehinde, the lawmaker representing Ijebu Central constituency in the house of representatives. He said there was need for the national assembly to review the laws that granted incentives to the multinational companies, advising the legislature to probe the processes of granting the tax incentives. “How are these incentives negotiated? Our suspicion is that the processes of negotiating these incentives are not open,” he said. “The companies go under the rugs to negotiate these incentives “The Nigerian parliament should start querying the processes and demand that they should be open and transparent and that the representatives of the people should be informed when these incentives are being negotiated.”
CBN: $20bn idle in dom accounts of Nigerians. The Central Bank of Nigeria (CBN) says some privileged Nigerians are behind the fall of the naira, adding that $20 billion is being kept idle in some domiciliary accounts in the country. Joseph Nnana, the deputy governor, financial system surveillance of the CBN, made the revelation on Thursday, assuring Nigerians that these speculators would get their hands burnt. Speaking at the meeting of the joint appropriation committees of the national assembly, Nnana said the naira would pick up after the passage of the 2016 budget. “Distinguished chairman sir, we have $20bn lying idle in various domiciliary accounts of many customers at the various banks across the country,” he said. “This is part of the reasons why the naira has continued to slide against the US dollar. The CBN will embark on aggressive liquidity mop-up to enable the naira regain confidence.
“The CBN will not sit down and watch the consistent fall of the naira. Nigeria: U.S.$20 Billion Idle in Private Accounts, CBN Says. ‘Nigeria spending 80% of revenue on debt servicing’ Lagos govt to establish micro-finance bank — Ambode. Vandalism of pipelines costing Nigeria up to $2.3 million a day - cctv-africa.com - HOME, NEW MEDIA, AFRICA LIVE, GLOBAL BUSINESS, MATCHPOINT, FACES OF AFRICA, TALK AFRICA, ABOUT CCTVAFRICA.
INTERVIEW-Nigeria to expand stock exchange range to lure investors. Exclusive: Nigeria to seek China loan, shelves Eurobond sale for now - sources. Nigeria: 23 Million Bank Customers Enrolled for BVN. Nigerian payment system improving – CBN. Nigeria plans to issue first non-interest sovereign bond in 2016. LCCI to CBN: lift forex restriction on 41 items. Top bankers in Nigeria to watch-out for in 2016 – Daily Times Nigerian Newspaper. Why 90m Nigerians still don’t have formal bank accounts. CBN releases N250m Agric loan to Lagos cooperative members | :: News :: Africa Independent Television - AIT.
Nigeria Signs Agreement With UAE On Recovery Of Stolen Funds. Nigerians to pay N50 tax for every deposit from N1000 and above paid into non-savings accounts | Nigerians to pay N50 tax for every N1000 paid into non-savings accounts :: News :: Africa Independent Television - AIT. Nigeria to issue maiden Islamic financial bond, 'Sukuk' N90 billion dividends unclaimed by Nigerian investors – Securities Commission. Insurance companies, others owe banks N790bn. More than $6.5 bn stolen in Nigeria in seven years: minister. Energy firms owe Nigerian banks N4trn. BVN eliminates ghost workers from govt payroll. Low interest asset financing platform officially launched in Nigeria.
Naija247news - Association lauds CBN new guidelines on loans for SMEs. 23 states restructure N576b debt with 15 banks — DMO – Daily Times Nigerian Newspaper. Nigeria: Switzerland to Transfer Another U.S.$300 Million Abacha Loot to Nigeria - Minister. Investors’ billions vanish as NSE returns worst performance in four years. IFC and LAPO Microfinance Bank to expand access to microfinance in Nigeria. The big four challenges facing Nigerian banks. Nigeria’s insurance sector growth beckons | BizNis Africa. Nigeria set to devalue currency. Nigeria expects 2016 budget deficit to double to $11 billion - Buhari.
FG loses N52bn to import waivers in 6 yrs. Stock market gains as Buhari presents 2016 budget. FG: Infrastructure Fund underway to drive industrial development. Breakdown Of Nigeria’s 2016 Budget - 247 Nigeria News Update. 6 NIGERIAN BANKS TO MERGE FROM JANUARY 2016 – Papertalk Nigeria. Nigeria’ll need foreign loans to finance 2016 budget – Minister. Nigeria’s Debt Management Model Excites African Countries - The Whistler. USA to provide 13% of N30b West Africa SMEs fund. Nigeria: Fashola Unveils Plans for Federal Roads, to Re-Introduce Tolling. First equity crowdfunding portal launched in Nigeria | BizNis Africa. Only 90% of bank customers registered for BVN – NoIPolls. AU Report on Nigeria banking services validated | CAJ News Africa. BVN expiration: Tension as millions of bank accounts frozen.
New Telegraph Newspaper – Anxiety for BDCs as BVN policy takes effect. Partnership set to drive Nigeria cashless economy | News24 Nigeria. Banks’ scramble for agric business. Nigeria: Bank Verification Number Deadline - 32 Million Accounts Yet to Register - allAfrica.com. BVN Enrollment Hits 20m Customers --- NIBSS | Nigerian News from Leadership News. Bank of Industry grants N24.6bn loan to solid minerals investors. Chams Mobile, Skye Bank launch Visa virtual card - The Nation Nigeria. Bank debts by energy firms hit N3.7tr – Daily Times Nigeria Newspaper. Nigeria losing $2.9bn yearly to tax waivers – Report. FG approves conversion of 11 states’ debt to bond. Naira devaluation likely by end of year. Nigerians Transfer N80 Billion Daily - Dozie - Reporters-360. Developing Nigeria’s Secondary Mortgage Market. Nigeria's foreign reserves rise to over $31bn.
‘Nigeria insurance industry to become number one in Africa soon - The Nation Nigeria. Foreign Reserves Rises To $31.89bn. Naira: Foreign investors shun bonds, equity market. Study recommends floating exchange rate for Naira. First consumer credit card launched in Nigeria. Nigeria to limit amount individuals can spend abroad on debit cards. Huge debts await Buhari, in-coming govs. Debt Servicing To Gulp 35% Of Nigeria’s Revenue – IMF. Nigeria’s Sovereign Wealth Fund Gets Global Rating. Nigeria: 75,000 POS Terminals Deployed in Lagos - Diamond Bank. Nigeria’s Woes Deepen as Central Bank Missteps on Currency - Bloomberg Business. Nigeria’s foreign reserves fall $1 billion in 12 days - Asoko Insight.
Nigeria, victim of $218bn illicit transfers. Nigeria: Capital market regulator unveils 10-year master plan. Proposed Development Bank of Nigeria gets $500m AfDB boost. UPDATE 2-Nigerian naira falls further, devalued level faces test. Traditional banking to end by 2025, say experts. 69 countries propel Nigeria to Africa’s financial centre. New Telegraph – 86m Nigerians lack insurance cover, says CIIN. Nigeria’s Currency Falls to Record Low - Frontier Markets News - Emerging & Growth Markets. MoneyGram Nigeria set to open outbound Money Transfer | National Mirror.