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Daily Business News Brief |  Wednesday, January 12th,  2022.

12
Jan

Profit-taking in Nestle, NB, 24 Others Down Stock Market By N20bn – Thisday

The stock market of the Nigerian Exchange Limited (NGX) yesterday halted its previous five consecutive day positive outing to close on a negative note for the first time in the year as the All-Share Index declined by 0.09 per cent.  The NGX All-Share Index declined by 37.83 per cent or 0.09 per cent, to close at 43,859.30 basis points, as the overall market capitalisation value lost N20 billion to close at N23.631 trillion……………….. read more

First Bank appoints three new executive directors – Punch

FBN Holdings Plc has notified the Nigerian Exchange Limited and the investing public of the appointment of three new executive directors to the board of its flagship subsidiary, First Bank of Nigeria Limited.  The new appointees are Olusegun Alebiosu as executive director, risk management and executive compliance officer; Oluwatosin Adewuyi as executive director, corporate banking; and Ini Ebong as executive director, treasury and international banking.  These appointments were disclosed in a statement by the Company Secretary, Seye Kosoko, titled, ‘Notification of appointments to the board of First Bank Nigeria Limited’…………………. read more

Interest Rate: 12 Banks Borrow N9.81trn from IFC, ADB, CBN, Others in 3 Years – Punch

Following availability of funds at single digit interest rate, a total of 12 banks borrowed a whooping N9.81trillion from international finance institutions, Central Bank of Nigeria (CBN), among others, between 2018 and 2020.  Banks operating in the country have continued to borrow from international financial institutions such as International Finance Corporation (IFC), African Development Bank, JP Morgan Securities Limited, among others to finance key projects in Nigeria and Africa countries where they operate…………….. read more

FG overshoots debt servicing by N1.15tn in 11 months  – Vanguard

ThE  Federal Government exceeded its debt service allocation by N1.15tn for the period between January and November, 2021, documents have shown.  A copy of the public presentation of the 2022 approved budget by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, showed that the Federal Government allocated N3.32tn for debt servicing in 2021.  Further breakdown showed that from the total of N3.33tn, domestic debt was expected to gulp 2.18tn, foreign debt N940.98bn, and sinking fund N200bn. Based on the allocation, the document further showed that the Federal Government hoped to have spent a total of N3.05tn on debt servicing from January to November 2021…………….read more

Bank loans to govt rise by 23% in nine months, hit N2.1tn-Thisday

Bank loans to government have risen by 22.59 per cent, hitting N2.17tn as of the end of September 2021 from N1.77tn recorded in December 2020. This represents a N400bn increase within the nine-month period.  This was contained in the Central Bank of Nigeria report titled, ‘Deposit Money Bank’s sectoral allocation of credit.’ According to the figures, bank loans to the government rose from N1.88tn as of the end of March 2021 to N2.03tn in June 2021, and N2.12tn in August 2021…………..read more

FG pledges increased forex sale to manufacturers  – Daily Independent

On the heels of meeting the Central Bank of Nigeria (CBN) 65 per cent Loan-to-Deposit (LDR) ratio policy, banks and merchant banks deposit with the apex bank dropped by 58.14 per cent in 2021.

Banks and merchant banks through the Standing Deposit Facility (SDF) on daily basis deposit excess funds with the apex bank at an applicable interest rate of 4.5 per cent at an asymmetric corridor of +100/-700 basis points around the 11.5 per cent Monetary Policy Rate (MPR).

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Devalue currency further, raise interest rates, IMF tells Nigeria, others – Punch

The International Monetary Fund has advised emerging economies including Nigeria to allow their currencies to depreciate in response to tighter funding conditions and an imminent policy tightening by the Federal Reserve Bank of the United States.  The Washington-based lender also counselled the Central Bank of Nigeria and the apex banks of emerging economies to raise their benchmark interest rate in preparation for the Fed policy tightening.  The IMF disclosed this in a blogpost titled, ‘Emerging Economies Must Prepare for Fed Policy Tightening,’ on Monday………………read more

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