Economic News Brief - 07/09/17

Kale Explains Why Nigerians Can’t Feel Impact of GDP Growth
The Statistician General of the Federation, Dr. Yemi Kale, has proffered reasons why Nigerians are yet to feel the impact of the economic turnaround, saying that growth in the services sector remained in the negative territory, making it difficult for the citizenry to feel the impact of the slight uptick in economic output. He equally cautioned that the growth that ended the recession was fragile, calling for concerted efforts to sustain growth in diverse sectors of the economy.
 
Debt office commences roadshow on N100bn Sukuk
The Debt Management Office (DMO) will kick off activities preparatory to the issuance of the N100 billion non-interest bearing bond popularly called Sukuk. A national roadshow led by the Director-General of the DMO, Ms. Patience Oniha, commences today (Thursday) and will visit major cities in Nigeria including, Kano, Kaduna, Lagos and Port Harcourt. The team will be accompanied by its financial advisers, Lotus Capital Financial Services Limited and FBN Merchant Bank Plc. The roadshow is to create awareness about the Sovereign Sukuk and sensitize target investors about the features and benefits of the Sovereign Sukuk.
 
$8.5bn Sold On I&E Window Boosts Confidence, Naira Value
Since its inception in April this year, the Nigerian Autonomous Foreign Exchange market (NAFEX), known as the Investors’ and Exporters’ foreign exchange window has seen an inflow of over $8.5 billion, complementing the several interventions of the Central Bank of Nigeria (CBN). The inflow from the NAFEX which uses a market determined pricing along with the close to $10 billion injected into the foreign exchange market by the apex bank has seen the value of the Nigerian currency strengthen. This has further built up confidence in the Nigerian economy resulting in increased inflow from foreign investors. The value of the naira at the NAFEX window which was launched in April this year has risen from around N385 to the dollar which it was first priced to N360 to the dollar.
 
Saraki: Collateral Registry, Credit Reporting to Boost MSMEs
Senate President, Dr. Abubakar Bukola Saraki has said that the new legislations – Secured Transactions in Movable Assets Act and the Credit Reporting Act – passed by the National Assembly last June and immediately signed into law by then acting President Yemi Osinbajo will support the growth of micro, small and medium sized enterprises (MSMEs) through increased bank lending and reduce bank exposure to loan defaults through pre-examination of credit worthiness for would be borrowers. Under the law, potential borrowers can now register assets other than land and property as collateral to secure a loan. Also, one can register his/her automobile or other worthy assets.
 
Danbatta: Ubiquitous Broadband Will Enhance Socio-economic Growth
The Executive Vice Chairman and Chief Executive of the Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta has said that ubiquitous broadband spread across the country will boost socio-economic development and growth in the country. The NCC boss has also assured Nigerians of government’s efforts to surpass the 30 per cent broadband penetration target by 2018. Danbatta made the pledge sequel to doubts expressed by industry players that Nigeria may not achieve the broadband target by 2018. He cited poor implementation of the broadband plan, since its inception in 2013.
  
BOI’s non-performing loan less than 5% despite risk taking - Pitan
The non-performing loans of the Bank of Industry (BOI) are less than 5 per cent despite taking risks that commercial banks avoid in order to develop industries in Nigeria. Speaking yesterday in Abuja while receiving a delegation from the Association of African Development Finance Institutions (AADFI), the Managing Director of BOI, Olukayode Pitan, said development finance institutions worldwide are more venturesome than commercial banks in aiding industries. Speaking on the need for development finance institutions to finance businesses that commercial banks may avoid, the BOI boss said, “Our rating in BOI is better than most Nigerian banks and we are taking risks they are not taking.” 

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