Sabinews daily update on the Nigerian Economy for July 14, 2014
External Reserves Stage Recovery, Rises by $1.030b in One Month
Nigeria’s beleaguered foreign reserves seems to be gradually regaining its upswing as it rose by $1.030 billion in the last one month to close at $38.136 billion at the weekend.
This represents an accretion by 2.8 per cent, compared to the $37.106 billion it stood as at June 10, 2014. (Thisday, pp 25)
10 Stockbroking Firms Trade N729b Shares Six Months
Ten leading stockbroking firms traded 56.593 billion shares worth N729.73 billion at the stock market in the first six months of 2014, data obtained by THISDAY showed last Friday.
The N729.73 billion accounted for 64 per cent of the value of shares traded in the six months from January to June. An analysis of the data showed that Stanbic IBTC Stockbrokers Limited led with N185.72 billion, which is the value of 10.71 billion shares. In percentage terms, Stanbic IBTC accounted for 16.32 per cent of the value of shares traded. (Thisday, pp 11)
Investors may lose N74bn as NSE moves to delist 21 firms
Not less than N74.855 billion will be lost by investors in the Nigerian capital market when the Nigerian Stock Exchange, NSE, finally delists about 21 quoted companies from its Daily Official List in the next two months.
If all the 21 companies are finally delisted, they will bring the total number of companies delisted from the NSE due to regulatory action to 38 in four years (2010 – 2014), and would have resulted in massive depletion in the market capitalisation. (Vanguard, pp 17)
CBN raises capital base of finance companies to N100m
The Central Bank of Nigeria (CBN) has increased the minimum capital base of Finance Companies by 400 percent to N100 million, with September 2015 as deadline for compliance.
This was announced in Lagos by Mr. Mudashiru Adegbite, Deputy Director, Other Financial Institutions Supervision (OFIS) department, CBN at a stakeholders meeting on the new guidelines for finance companies. (Vanguard, pp 20)
Massive works in aviation industry and the N174 Billion debt
A lot of concern has been raised about the current debt profile of the Federal Ministry of Aviation . The Senate Committee on Aviation first blew the whistle that the ministry has incurred so far about N174 billion in the current remodeling of the airports across the country.
The Supervising Minister for Aviation, Dr Samuel Ortom recently undertook a tour of some of the projects this money has been expended on.
Read more here.
Nigeria spends N300bn annually on hotel accommodation —Essien
Nigerians traveling within Nigeria spend at least $2 billion, about N320 billion every year on hotel accommodation.
Founder/ Chief Executive Officer of Nigeria’s Online Hotels Booking Limited, Hotels.ng, Mr. Mark Essien disclosed this when speaking to Vanguard on the operations of the hotel booking portal and the potential of online hotel booking business in Nigeria.
Hotel.ng, an online hotel booker officially launched in January 2013 and has over 4, 000 hotels listed on its website and currently process over 400 bookings daily. (Vanguard, pp 21)
BoI targets bonds to fund industrialisation plan
The Bank of Industry (BoI) said in Lagos at the weekend that it urgently requires “new and significant” funding to make meaningful impact in the National Industrial Revolution Plan (NIRP) of the Federal Government over the next two years.
Speaking at a news conference, the new Chief Executive of BoI, Rasheed Olaoluwa, said in the face of mounting pressure on government’s resources and the effect on its key shareholders like the Ministry of Finance Incorporated (MOFI) in terms of financing, and the Central Bank of Nigeria (CBN), there is a resolve to explore new funding alternatives to realise its key mandates. (Daily Independent, front page)