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Daily Business News Brief | Wednesday, May 4th, 2022.

4
May

NGX Market Cap Up N1.45trn on 98% Contribution by Seplat, Dangote Cement, 15 Others – Punch

As the stock market of the Nigerian Exchange Limited (NGX) appreciated by N1.45trillion in April, a total of 17 fundamental companies contributed about 98 per cent to market capitalisation in the month under review. Analysis of trading data showed that the overall market capitalisation closed at N26.761 trillion in April 2022 from N25.312 trillion in March, representing an increase of N1.45 trillion ………………..read more

Nigerians to pay more as GSM operators plan 40% tariff hike – Thisday

Telecommunication companies are proposing a 40 per cent increase in the cost of calls, SMS, and data to the Nigerian Communications Commission as a result of the rising cost of running a business in the nation. Based on their proposal, the price floor of calls will increase from N6.4 to N8.95 while the price cap of SMS will increase from N4 to N5.61.  This was revealed in a letter titled, ‘Impact of the Economic and Security Issues on the Telecommunications Sector,’ which was sighted by our correspondent……………read more

Power firms owe banks N861.14bn amid worsening electricity crisis – Thisday

THE debt owed to Nigerian banks by operators in the power sector rose by 12.83 per cent in one year to N861.14bn in December 2021 amid the lingering problems plaguing the sector since it was privatised over eight years ago, according to the Central Bank of Nigeria data.  The PUNCH had reported in July 2020 that the core investors in the distribution companies were looking to restructure the loans advanced to them by banks for the acquisition of the power assets. In November 2013, the nation’s distribution and generation companies were privatised through the Bureau of Public Enterprises, fetching about $3.2bn for the Federal Government, as the Discos and Gencos were sold for $1.7bn and $1.5bn, respectively………read more

Firms collapse as Nigeria’s 11.5% lending rate among global highest – Daily Independent

Nigeria’s Monetary Policy Rate (lending rate) of 11.5 per cent is among the highest in emerging economies, findings by our correspondent have shown.  The monetary policy rate, referred to as repo rate in South Africa or the prime lending rate in other countries, is the benchmark interest rate usually set by the central bank of each country.  Nigeria’s rate was reduced from 12.5 per cent to 11.5 per cent in September 2020 and has remained so till the last Monetary Policy Committee meeting. Other countries have kept theirs at a single-digit rate to pursue growth amid inflationary pressure in a post-COVID-era, but Nigeria’s has remained at a double-digit rate……………… read more

External reserves fall by $196m in eight days – Punch

Nigeria’s external reserves fell slightly by $196m in eight days to $39.62bn as of April 28, according to figures obtained from the Central Bank of Nigeria. The CBN revealed that the reserves, which had earlier gained $243.83m in 19 days from $39.54bn as of April 1, 2022 and rose to $39.78bn as of April 19, 2022, returned to a downward path. The external reserves fell by $313m in March, after starting the month at $39.86bn, before falling to $39.55bn on March 30……………read more

Again, Nigeria Cuts Oil Production Losses from Sabotage, Assets’ Breakdowns, Force Majeure in March- Punch

Nigeria recorded significantly less oil production losses in the February/March drilling cycle, with shutdowns arising from sabotage, force majeure, crude production assets’ breakdowns and community issues markedly down to 1.69 million barrels for the entire month…………….read more

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