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Category: Business

  • Chinese Yuan achieves stronger position at 7.1788 against US dollar

    The Chinese Yuan exhibited increased strength on Friday, with the central parity rate of the yuan against the US dollar reaching 7.1788, marking a gain of 23 pips.

    This adjustment was reported by the China Foreign Exchange Trade System.

    It’s worth noting that in China’s spot foreign exchange market, the yuan’s value is permitted to fluctuate by up to two percent in either direction from the central parity rate during each trading day.

    The central parity rate for the yuan’s value against the US dollar is determined based on a weighted average of market maker prices prior to the opening of the interbank market on every business day.

  • MAN lists high energy costs as major challenge


    The Manufacturers Association of Nigeria (MAN) CEOs Confidence Index (MCI) for the second quarter of 2023 has revealed that rising energy costs remain a major challenge facing manufacturers in the country.

    Challenges facing manufacturers according to the survey includes, energy costs; high cost of credit/inadequacy of loanable funds; multiple taxes/charges/levies/same tax policy for local producers and importers; unavailability of raw materials/delay in receiving imported raw materials; high cost of raw materials and scarcity of forex/high exchange rate/poor allocation of forex.

    According to the survey, about 63.1 per cent of manufacturers enumerated disagreed that government capital expenditure encourages productivity in the manufacturing sector; 23.9 per cent of those enumerated agreed, while about 13.1 per cent were unsure.

    MAN said the aggregate index score of MCCI in the second quarter of 2023 declined by 1.4 points to 52.7 points from 54.1 points obtained in the first quarter of 2023, which is also 2.3 points less than 55.0 points recorded in the fourth quarter of 2022.

    According to the survey findings, manufacturers within the country continue to grapple with the reverberations of the Naira Redesign policy, which was implemented during the tenure of Godwin Emefiele, the former Governor of the Central Bank of Nigeria (CBN). 

    Furthermore, manufacturers lament the hindrance caused by two concurrent factors, among which is the upswing in motor vehicle insurance expenses, which continues to add to the operational burden of manufacturers.

    Additionally, the escalation in logistics costs is a concern that stems from the heightened pricing of premium motor spirit (PMS), commonly referred to as petrol. This is of particular significance as manufacturers need to distribute their goods extensively across the various states of the country, entailing substantial transportation expenses.

    The survey’s observations underscore that the second quarter of 2023 witnessed a substantial uptick of 17.3 per cent in both production and distribution costs for manufacturers.

    This surge in costs further accentuates the challenges faced by the manufacturing sector and calls for a comprehensive examination of strategies to mitigate these adverse effects.

    Director General of MAN, Segun Ajayi-Kadir, in the report said government’s capital expenditure should address the issues of economic infrastructure such as roads, electricity, water, etc. that support industrial sector businesses.

    “The absence of economic infrastructure contributes significantly to the high cost of operating environment which obstructs the development of manufacturing in Nigeria.

    “It is highly expedient that the government strives to ensure the harmonisation of fiscal and monetary policies that will pave the way for a stable macroeconomic environment needed to promote productivity in the manufacturing sector and improve the ease of doing business,” he said.

  • Bulls return as equity market gains N60bn

    The domestic equity market, on Thursday closed on a positive note, appreciating by N60 billion as Sterling Bank, Transcorps, Fidelity Bank, Dangote Sugar, among others lifted market activit


    The market capitalisation of listed equities increased by 0.17 per cent to N36.422 trillion from N36.362 trillion reported the previous day.


    The NGX All Share Index also appreciated by 109.46 basis points to 66548.99 points from 66439.53 points reported on Wednesday.


    A review of the investment showed that NGX group led gainers table during the day with 10 per cent to close at N26.40 per unit, Seplat Energy followed with a gain of 9.95 per cent to close at N1837.00 per share, Trans Express gained 9.38 per cent to N1.05 per unit, UPL added 9.32 per cent to close at N2.58 per share while ABC Transport increased by 8.64 per cent to close at N0.88 per share.


    Conversely, Multiverse recorded the highest loss, declining by 10 per cent to close at N2.70 per share, Nascon trailed with a drop of 9.81 per cent to close at N50.55 per unit, Honey Well Flour down by 8.11 per cent to close at N3.40 per share, May & Baker dipped by 7.27 per cent to close at N5.10 per shares while Jaiz Bank sheds 6.83 per cent to close at N1.50 per share.


    Volume of trades declined as investors traded 620.982 million shares worth N7.180 billion in 7972 deals against 637.193 million shares valued at N7.790 billion exchanged hands the previous day in 10033 deals.


    Sterling Bank Plc led market activities with 160.995 million shares valued at N531.392 million, Transnational Corporation of Nigeria followed with 135.695 million shares valued at N847.536 million, Fidelity Bank traded 57.622 million shares worth N403.333 million, FTNCocoa sold a total of 47.177 million shares cost N97.395 million while Dangote Sugar exchanged 28.858 million shares cost N1.600 billion.

  • BUA to bring down price of cement in January

    The Chairman of BUA Cement Plc, Abdul Samad Rabiu has said that the company is going to reduce the price of its product by January next year.

    Rabiu, said this when he fielded questions from journalists on Thursday in Abuja.

    He said the decision is part of the company’s efforts to support the government and Nigerians.

    The Minister of Works, Dave Umahi had recently said the federal government was considering the importation of cement as a way of bring down the price of the product.

    There has been outcry from Nigeria over the high price of cement in the country. The price of cement is between N4,500 to N4,800 across the country.

    Explaining, he said the challenge with the exchange rate was part of the reason for the high price of the product in the country at the moment.

    He said, “I understand that the minister is quite concerned, that the price of cement is high at almost N5,000 per tonne. I appreciate where the government is coming from and the frustration from all the issues in the country.

    “The price of cement at N5,000 is not high. If we look at the rate of the US dollar today, to import cement will be at N5,000. The cement cost, insurance and freight to any port in Nigeria will be in the region of about $100 a tonne. So, at $100 per tonne, if you take N800 to $1 then it will be N4,000 per bag. Then the port cost, and transportation from the port.

    “It’s not that the government wants to import cement, but they are frustrated that the price of cement is high. What we told our shareholders is that we will engage with the government to support the government.

    He further said that with its two production lines coming on stream before the end of the year, the company would be in a better position to execute its plan of supporting the government to bring down the price of cement.

    “If you have the volume and you reduce your price, and with the huge volumes that we have the price must come down. So, even if others are not ready to support the government, to support the reduction of the price of cement, they will be compelled because if they don’t reduce they will not be able to sell. That is why we are going to wait till the end of the year when these two lines are on stream. I will discuss with the minister and see how we can do that,” he added.

    Earlier at the AGM, shareholders approved the proposal of the board of directors to pay the sum of N2.80 per share in 2022 compared to the N2.60 per share paid in the previous year of 2021.

    A look at the audited financial statement revealed that the company’s revenue rose by 40.3 per cent to N361.9 billion in 2022 as against N257.3 billion recorded in 2021.

    Also, Profit After Tax rose by 12.1 per cent to N101.1 billion compared to N90.1 billion recorded in 2021.

  • Nigeria’s equity market dips by N28bn

    Transactions on the floor of the Nigerian Exchange took a negative trend on Wednesday, shedding N28 billion due to a decline in the share price of Transnational Corporation of Nigeria (Transcorps), Zenith Bank and FTNCocoa.

    The market capitalisation of listed equities went down by 0.08 per cent to N36.362 trillion from N36.390 trillion reported the previous day.


    The NGX All Share Index also depreciated by 50.81 basis points to 66439.53 points from 66490.34 points reported the previous day.


    An analysis of the investment showed that Chi Plc and Cap Hotel led gainers table in percentage terms, gaining 10 per cent each to close at N1.10 and N2.75 per share respectively. UPL followed with a gain of 9.77 per cent to N2.36 per unit, Champion Breweries gained 9.72 per cent to close at N3.50 per share, Thomas Way added 9.60 per cent to close at N2.17 per share.


    On the contrary, Transnational Corporation of Nigeria recorded the highest loss with 9.99 per cent to close at N6.31 per unit, Ikeja Hotel trailed with a drop of 9.88 per cent to close at N3.65 per unit, FTNCocoa fell by 8.11 per cent to close at N2.04 per unit, RTBriscoe down by 6.67 per cent to close at N0.42 per share.


    Volume of trades during the day decreased by 200.237 million, representing 45.82 per cent as investors traded 637.193 million shares valued at N7.790 billion in 10033 deals against 436.956 million shares worth N7.013 billion exchanged hands the previous day in 7932 deals.


    Transnational Corporation of Nigeria led market activities with 292.409 million shares worth N2.146 billion, AccessCorp followed with account of 26.652 million shares worth N435.491 million, Dangote Sugar Refinery exchanged 24.452 million shares worth N1.454 billion, Jaiz Bank traded 18.662 million shares cost N27.723 million while Fidelity Bank exchanged 17.386 million shares worth N122.281 million.

  • Juliet Ehimuan appointed Non-Executive Director at Zenith Bank

    The Board of Directors at Zenith Bank Plc has welcomed Dr. Juliet Ehimuan as a Non-Executive Director of the bank.

    The appointment officially commenced on August 29, 2023.

    The announcement of her appointment was made public through a statement released to the Nigerian Exchange (NGX) Limited. Furthermore, the Central Bank of Nigeria (CBN) has confirmed the appointment.

    Dr. Ehimuan is a distinguished leader and influential figure within the technology industry.

    Her vast experience in the tech sector makes her appointment a strategic move for Zenith Bank, especially in this pivotal time when African startups and legacy institutions are at the forefront of the global fintech evolution.

    Dr. Ehimuan holds the position of Founder and CEO of Beyond Limits and formerly served as the Director of Google West Africa.

    She has been recognized by Forbes as one of Africa’s top 20 power women, acknowledged by the London Business School as one of 30 individuals changing the world, and designated as one of the Most Influential People of African Descent (MIPAD).

    Her accomplishments have also been highlighted in the BBC Africa Power Women series and on CNN Innovate Africa.

    With over 25 years of experience primarily in the Technology, Oil & Gas, and New Media sectors across Europe, the Middle East, and Africa, Juliet stands as a prominent voice in Innovation, Transformation, and Leadership.

    Her impactful 12-year tenure at Google included expanding the company’s footprint in Nigeria and the wider West Africa region. During this time, she spearheaded efforts to enhance digital access, local content development, skill acquisition, innovation, entrepreneurial growth, and strategic partnerships with private sector and government entities.

    Dr. Juliet Ehimuan’s contributions to the tech ecosystem extend beyond her professional roles. She played an instrumental role in committees developing Nigeria’s national broadband plan and ICT incubation strategy, as well as participating in national strategic advisory groups focused on economic growth.

    These commitments underscore her dedication to shaping the technological landscape in Africa.

    She has garnered numerous awards for her exceptional contributions to the digital domain in Africa.

    With board positions spanning multiple industries including Finance, Fast-Moving Consumer Goods (FMCG), Oil & Gas, Education, and social enterprises, Dr. Ehimuan’s expertise encompasses diverse sectors.

    Her educational background comprises a Doctoral degree in Business from Walden University in Minneapolis, an Executive MBA from the London Business School, a Postgraduate degree in Computer Science from the University of Cambridge, and a BSc in Computer Engineering (First Class Honours) from the Obafemi Awolowo University, Ile-Ife.

    She has been honoured as a recipient of the London Business School Global Women’s Scholarship and was bestowed with the Selwyn College Scholar and Malaysian Commonwealth Scholar

  • FG contemplates new guidelines for enhanced asset protection

    In a determined effort to bolster the safeguarding of its assets on a nationwide scale, the federal government is engaged in discussions with the National Insurance Commission to establish innovative protocols concerning asset insurance.

    Olorundare Sunday Thomas, the Commissioner for Insurance, unveiled this initiative during an interactive session with journalists in Uyo, Akwa Ibom.

    He revealed that the Secretary to the Government of the Federation, Senator George Akume, lends his support to this novel strategy.

    The new framework for insurance is set to be revealed by October during the forthcoming National Insurance conference.

    Thomas asserted that the federal government’s evolved stance on insurance represents a progressive step.

    Thomas, at the helm of NAICOM, emphasized, “Since the inception of the new government, I have had the privilege of conferring with the Secretary to the Government of the Federation (SGF) regarding the formulation of guidelines for insuring government assets. This matter is being taken seriously.”

    He further expounded, “Moreover, President Bola Tinubu established a culture of insurance in Lagos during his tenure as governor. Remarkably, this culture has endured, as almost all subsequent governors have consistently honored premium payments and adhered to the established insurance framework. Now, this precedent is being extended to the federal level.”

    Highlighting the federal government’s dedication to this fresh insurance approach, Thomas affirmed that collaborative efforts with the commission are well underway.

    The objective is to devise a strategic guideline that will serve as a blueprint for the government’s renewed enthusiasm for insurance acquisition. This guideline will be rigorously embraced by all ministries, departments, and agencies (MDAs).

  • Akwa Ibom Govt shuts down Ruitai Mining firm over illegal operations

    The Akwa Ibom State Government has undertaken the closure of Ruitai Mining Company, a Chinese mining establishment, due to its failure to present a valid operational license.

    The Commissioner for Environment and Mineral Resources, Chief Uno Etim Eno, made this announcement during a press briefing held in Uyo.

    According to Eno, the mining firm, situated in the Ibeno community of the state, was unable to furnish the required authorization documents for its titanium ore mining activities.

    The company had been clandestinely conducting titanium ore extraction in the area until its operations were intercepted and it was directed to provide the pertinent documents.

    Upon inspection, it was revealed that the company lacked a valid mining license and an Environmental Impact Assessment (EIA) report, which would have indicated the potential impacts of its activities on the host community.

    A collaborative team from various ministries, which included the Permanent Secretary, Mrs. Iquo Abia, conducted a thorough assessment of the mining site in Ibeno community. Guided by High Chief Williams Mkpa, Chairman of the Ibeno Local Government Area, the team identified the presence of black clay-like minerals contained in 50kg sacks, confirmed as titanium ore by the miners.

    However, the Managing Director and Director of the company, Zeng Zhonghuan and Huang Ying, were conspicuously absent from the site during the inspection. The available staff members lacked the ability to provide any relevant information or documentation.

    Investigations by the Ministry of Environment disclosed that Ruitai Mining Company was essentially an exploration venture. Furthermore, the company’s Board of Directors comprised exclusively of Chinese nationals, rendering them ineligible to obtain the claimed small-scale mining license.

    As a result, the state government has issued a directive for Ruitai Mining Company to cease all mining activities with immediate effect. The company has been instructed to await official clearance from the state government, legitimizing its operations, before resuming any mining activities.

    “The joint ministerial inspection team included the Permanent Secretary, Mrs Iquo Abia, on arrival at Ibeno community, were conducted round the mining site by the Chairman of Ibeno Local Government Area, High Chief Williams Mkpa.

    “The team discovered black clay-like minerals contained in sacks of 50kg, which was identified by the miners as titanium ore.

    “On critical examination of the site amidst tight security, the Managing Director and Director of the company, Zeng Zhonghuan and Huang Ying, were not available at the site. The available staff members could not provide any information or documents,” Uno said.

    Uno said that the Ministry of Environment discovered that the company was purely an exploration company while the Board of Directors were all Chinese nationals who were not eligible to acquire the small-scale mining licence as claimed.

    “Ruitai mining company should terminate its mining operations forthwith, until due clearance legitimising its operation is completed with the state government,” he said.

  • Banks secured ₦12trn in borrowings over 8 months -CBN

    Central Bank of Nigeria (CBN) data indicates that between January and August of the current year, commercial and merchant banks accessed a total of ₦12.46 trillion in borrowings. This data underscores an escalating dependence on the regulatory body for liquidity.

    Comparatively, this amount signifies a 79% Year-on-Year surge in borrowing when contrasted with the ₦6.96 trillion recorded during the same period in 2022. The increased reliance on borrowing was mainly triggered by the CBN’s new naira note policy, which led to a cash crunch in the economy, impacting the initial months of the year.

    Banks interact with the CBN through two avenues: the Standing Lending Facility (SLF) for liquidity access and the Standing Deposit Facility (SDF) for cash deposits. The growing trend of banks seeking liquidity from the SLF mirrors the expanding currency outside banks and currency in circulation (CIC) in the economy.

    In the initial five months of 2023, borrowing from the CBN surged to ₦7.5 trillion, marking a remarkable 276% increase from the ₦1.99 trillion recorded in the same period of 2022. This upward trajectory continued into the first half of the year (H1), reaching ₦10.25 trillion, a 138% Year-on-Year surge from the ₦4.3 trillion borrowed in H1 2022.

    A detailed monthly breakdown of the 2023 borrowing figures reveals that ₦528.16 billion was accessed by banks in January. The following month, February 2023, saw the figure slightly decrease to ₦453.7 billion. March 2023 experienced a substantial spike of 776.22%, soaring to ₦3.98 trillion. April 2023 witnessed banks borrowing ₦4.47 trillion from the CBN.

    Subsequent months reflected borrowing amounts as follows: ₦590.29 billion in May, ₦235.06 billion in June, ₦908.43 billion in July, and ₦1.3 trillion in August.

  • Complaints over services, metering decline, says NERC

    In the first quarter of 2023, Nigeria’s eleven power distribution companies (Discos) recorded a total of 249,683 complaints from consumers regarding service interruptions, metering, and billing issues, as revealed by the Nigerian Electricity Regulatory Commission (NERC).

    The regulatory body disclosed that the DisCos successfully resolved 229,101 of these complaints, achieving a commendable resolution rate of 91.76%, surpassing the 91.38% rate recorded in the previous quarter of 2022.

    The cumulative consumer complaints in 2023/Q1 were 4.44% lower than those reported in 2022/Q4, amounting to 11,595 fewer grievances.

    Among the issues raised, metering, billing, and service interruption constituted the majority, contributing to over 79% of the total complaints for the quarter.

    During this period, the average available generation capacity reached 4,605.72MW, with an average hourly generation of 4,334.41MWh/h.

    The quarter’s total generation amounted to 9,350.23GWh from 26 grid-connected generating plants across the nation.

    Comparing 2023/Q1 to 2022/Q4, the average available generation capacity experienced a growth of 2.27%, rising from 4,503.59MW to 4,605.72MW.

    The enhancement was driven by improved availability in eleven of the twenty-six grid-connected power plants.

    Notably, the Egbin plant exhibited substantial progress, with a remarkable 48.48% increase in available capacity, climbing from 476MW to 706MW.

    However, the remaining 15 plants encountered minor declines in available capacity, with only Delta Gas showing a notable drop exceeding 10%, at -13.51%.