Business

CBN assures investors of banks’ stability, soundness

Published

2 years ago

December 6, 2021

The Central Bank of Nigeria (CBN) says all metrics and indications indicate that the Nigerian banking system remains strong, stable, and is playing a significant role in aiding Nigeria’s economic recovery.

CBN’s Deputy Governor, Financial System Stability, Mrs. Aishah Ahmad gave the assurance while speaking at the 40th anniversary summit of the Financial Institutions Training Centre (FITC) in Lagos on the banking industry’s stability.

She added, “We’re very positive about the resilience and the soundness of the banking sector. You see the reports as we give them from time to time from the MPC. Actually, the banking system has been very strategic in support of the recovery based on the impact of COVID.

“Some of the forbearances that we granted to the banking sector has helped to ensure they retain their capacity to lend and it has helped them give succour to their obligors and we are seeing some obligors come out of that forbearance now.

“The financial soundness indicators have been very strong on capital, liquidity, and we’re very proud and we just want to continue to ensure that the bank system continues to provide lending, not just wholesale or commercial lending but to small business because that will be the engine of the economy.”

Significant developments, she said, had brought discussions about Africa’s potentials back to the forefront. She stated that the financial system, just as it was in mapping the economic recovery route from COVID-19, would be critical in realising Africa’s enormous potentials.

ALSO READ UBA CEO reveals bank well-positioned to meet Africa’s banking needs

Mrs Ahmad stated that the CBN, under the management of Governor Godwin Emefiele, was committed towards an inclusive growth and LDR policy which had been positive, adding that N7 trillion in retail loans was an unequalled record.

She said, “Over the years the CBN has tried to ensure that we drive lending to the real sector. You would agree with me that the policy under Governor Emefiele over the last few years, has really emphasised on this, not only in terms of intervention funds given but in terms of some of the policies put in place such as loan to deposit ratio (LDR) which when we instituted it in 2019 till now actually added about N7 trillion or so in loans, and which is quite unprecedented.”

Global rating agency, Moody’s investor Service had last week highlighted the improving asset quality and resilient profitability of nine Nigerian banks, and also affirmed B2 long-term local and foreign currency deposit ratings as well as senior unsecured ratings.

At the same time, the rating agency changed the outlook on all the banks’ long-term deposit ratings to stable from negative

The rating agency listed the banks as: Access Bank Plc, Zenith Bank Plc, First Bank of Nigeria Limited, United Bank for Africa Plc, Guaranty Trust Bank Plc, and Union Bank of Nigeria plc, Fidelity Bank plc, FCMB Limited and Sterling Bank Plc.

The rating action reflects the banks’ financial profiles which have been generally resilient to the difficult operating environment in Nigeria. On average, the Nigerian banks’ asset quality has remained resilient and banks’ pre-provision profitability is recovering to pre-pandemic levels while their capital and funding positions, particularly in local currency, have remained solid

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Business

Oando, Tantalizer, other equity investors lose N40bn

Published

4 days ago

September 23, 2023

Seun Okerayi

On Thursday, the Nigerian stock market experienced sell-offs that caused losses in Oando, Tantalizer, and other companies before the end of trade.

After five hours of trading today, the sell-offs reduced the equity capitalisation by N40 billion, from N37.40 trillion to N37.36 trillion.

The All-Share Index, which had previously closed at 68,335.72 but fell by 64.58 basis points to 68,271.14 today, mirrored the fall.

On Thursday, investors transacted 7,949 deals totaling 1.12 billion shares worth N5.81 billion.

More than 8,201 transactions totaling 566.63 million shares worth N5.38 billion were made on Wednesday by shareholders.

With a N0.15 kobo increase in share price, John Holt moved from N1.57 kobo to N1.72 kobo per share, topping the list of gainers.

In comparison to its starting share price of N0.21 kobo, DAAR Comm increased by 9.52 percent to close at N0.23 kobo.

Omatek’s share price increased from N0.42 kobo to N0.46 kobo, a 9.52 percent increase.

Mutual Benefit’s share price increased by 9.30 percent, rising from N0.43 to N0.47 kobo per share.

Shares of Sunu Assurance ended trading at N0.96 kobo, up 9.09 percent from N0.88 kobo.

Oando topped the losers’ table after shedding N1.45 kobo to drop from N14.60 kobo to N13.15 kobo per share.

Lasacol’s share price dropped by N0.20 kobo to end trading at N1.86 kobo from N2.06 per share.

Chams lost N0.14 kobo to end trading with N1.32 kobo from N1.46 kobo per share.

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NNFM lost N1.55 kobo to drop from N16.80 kobo to N15.25 kobo per share.

Tantalizer’s share dropped from N0.35 kobo to N0.32 kobo per share after losing N0.90 kobo during trading.

Universal Insurance topped the day’s trading with 669.01 million shares valued at N134.20 million.

Oando followed with 100.68 million shares worth N1.45 billion.

Japaul Gold sold 43.73 million shares worth N43.38 million.

Access Corporation traded 40.14 million shares valued at N681.94 million, while UBA sold 32.45 million shares valued at N552.75 million.

Business

President Tinubu Meets With Nigerians In US

Published

4 days ago

September 22, 2023

Seun Okerayi

President Bola Ahmed Tinubu has met with members of the Nigerians in the Diaspora Community in the US

The President tasked Nigerians living in the US to bring their resources to invest in the Nigerian economy.

President Tinubu said this in a meeting organised by the Nigerians in Diaspora Commission (NIDCOM) on the sidelines of the ongoing 78th session of the United Nations General Assembly (UNGA).

The President who advised the community to overcome setbacks asked the citizens to adopt a new mindset.

He further told the gathering at the Town Hall meeting that their fatherland had become home for business opportunities.

“I want to give you a measure that will resonate with you. I was once a Diasporan. What you have been through, I have been through it. A change of mindset is necessary. Take it this night that Nigeria is home for business opportunities.

“Also, anywhere you stay, there is always going to be an opportunity in it and in everything you do, there is always going to be an opportunity, if you know how to search and put your mind to it.”

President Tinubu expressed satisfaction with their conduct lauding their exemplary conduct and how they had continued to succeed in their country of residence.

“You are lucky to be among those who are celebrated for good manners and behaviour and are operating acceptably.

“I’m very proud of you; I have also been a beneficiary of inspiration, determination, commitment and perseverance and that is all you need to pull through.

“But, we need you back home, Nigeria has arrived; forget the frustration of the previous years’ leaderships,” President Tinubu said.

Business

World Bank pledges to reposition Nigeria’s irrigation farming

Published

4 days ago

September 22, 2023

Seun Okerayi

The World Bank announced its commitment to reposition Nigeria’s irrigation farming for sustainable economic development and for food security on Thursday in Abuja.

It announced the commitment when its team on Sustainable Power and Irrigation in Nigeria/ Transforming Irrigation Management in Nigeria, (SPIN/TRIMING) project officials visited the Minister of Water Resources and Sanitation, Prof. Joseph Utsev.

The officials were led by Mr Jun Matsumoto, the Team Lead. Matsumoto acknowledged the successful transformation of irrigation asset management in Nigeria through the establishment of water users associations.

He noted the pivotal role played by the associations in ensuring the sustainable management of irrigation resources and called for support in achieving the project’s objectives.
He emphasised the critical importance of collaboration in the upcoming SPIN project and elaborated on its core objectives.

Matsumoto said one of the objectives was the utilisation of existing water resources infrastructure to address Nigeria’s water resources and energy requirements.

He said the project would include comprehensive technical assistance studies focused on large-scale water resources management, and the development of multi-purpose dam hydropower projects.

Responding, Prof. Utsev said achievements already recorded in Nigeria’s TRIMING project was impressive.

He emphasised the integral connection between economic sustainability and food security underlining the TRIMING project’s pivotal role in enhancing food production.

The minister welcomed the proposal to replace TRIMING, set to expire in 2024, with SPIN, saying it would address Nigeria’s pressing challenges in the area of food sufficiency.

ALSO READ UBA CEO reveals bank well-positioned to meet Africa’s banking needs

Prof. Utsev reaffirmed Federal Government’s commitment to food security, improved irrigation techniques, and enhanced farming practices across the country.

He expressed gratitude to the World Bank for the remarkable progress recorded on the project over the past nine years and expressed optimism that it would yield even more significant outcomes.

TRIMING strengthened quality of and access to productivity-enhancing and market access services for 130,000 farmers in four rehabilitated irrigation schemes.

They are the Bakolori Irrigation Scheme in Zamfara, Middle Rima Irrigation Scheme in Sokoto State, Kano River Irrigation Scheme, and Hadejia Valley Irrigation Scheme in Jigawa state.

The project provides technical assistance to establish a Farmers’ Management Centre at each of the irrigation schemes.