Rising cost of funds, tight liquidity put interest earnings outlook on edge for Nigerian banks
Steve Omanufeme
September 21, 2017
Despite the recovery in the Nigerian economy, as indicated by Q2 2017 gross domestic product growth numbers, earnings prospect for banks look tough as system liquidity remains tight for banks owing to aggressive open market operations by the Central Bank of Nigeria (CBN), analysts at Renaissance Capital have said in a banking sector update obtained […]
Nigeria’s ease of doing business policy faces fresh hurdle as Customs places ‘red alert’ at ports, borders
Businessam StaffSeptember 21, 2017
Government policy on ease of doing business at the ports faced fresh hurdles Thursday following a red alert placed by the Nigeria Customs Service (NCS) on all seaports, land borders and airports across Nigeria over increasing illegal importation of arms into the country. The Federal Government this year issued an Executive Order directing that operators […]
Power minister data show only 65.7% of electricity generated in Nigeria gets distributed
Businessam StaffSeptember 21, 2017
Although the Nigerian power sector has witnessed increased generation in recent times, the actual power distributed to homes and businesses is only 65.7 percent of total generation, according to data provided by Babatunde Fashola, minister of power, works, and housing. Fashola who delivered a speech at the National Council on Power, Thursday in Jos, said […]
Banks back Dangote’s cash, shares bid for South Africa’s PPC
Businessam StaffSeptember 21, 2017
Dangote Cement Plc, has firmly put forward its takeover bid of PPC as it has written to the cement maker offering cash and shares as part of a takeover deal that is seen fueling a bidding war. “We are waiting for them to get back to us, hopefully early next week,” Aliko Dangote, chairman of […]
Oil traders empty key crude storage hub amid OPEC production cuts
Businessam StaffSeptember 21, 2017
Oil traders are emptying one of the world’s largest crude storage facilities, located near the southernmost tip of Africa, as the physical market tightens amid booming demand and OPEC production cuts. Bloomberg reports that Total SA, Vitol Group and Mercuria Energy Group Ltd. are selling crude they hoarded in Saldanha Bay, South Africa, during the 2015-2016 glut when the […]
Big-ticket borrowers of over N1bn choke out SMEs, account for 81% of Nigerian banks’ loan portfolio
Businessam StaffSeptember 20, 2017
The Nigerian money market remains characterized by excessive concentration of credit per obligors and per sectors, as big ticket borrowers –those who borrow above N1 billion – account for about 81 percent of the loan portfolio, just as those borrowing less than or equal to N1 million account for just about 1.3 percent. Professor Abdul-Ganiyu […]
Dangote Cement lifts Nigeria’s equities index 1.0% after three days of consecutive losses
Businessam StaffSeptember 20, 2017
The Nigerian equities market rebounded Wednesday after three days of consecutive losses as uptick in Dangote Cement (DANGCEM) helped push the market north. The Nigerian Stock Exchange (NSE) all-share index (ASI) rose 1.0% at the close of trading to 35,207.89 points, while year-to-date gain improved to 31.0 percent, just as market capitalization added N124.5 billion […]
Nigeria to beef up daily oil production by 200,000b in 2018 from Egina project as NNPC accelerates local capacity devt
Businessam StaffSeptember 20, 2017
Nigeria’s Egina oil project would add about 200,000 barrels of oil to the nation’s daily crude production when completed in the fourth quarter of 2018, according to Ahmadu Musa-Kida, deputy-managing director of Total, a principal partner of the Egina Project. This is just as the Nigerian state oil company, the Nigerian National Petroleum Corporation (NNPC), […]
Appetite for new risk assets wanes in Nigerian banks as govt. securities offer window for easy interest income
Businessam StaffSeptember 20, 2017
The relative high yields on government securities have created an environment for Nigerian banks to grow net interest income (NII) without creating new risk assets, analysts at Renaissance Capital have said in a banking sector update obtained by Businessamlive. The analysts in a sector update titled, “Nigerian banks survival of the fittest”, released Tuesday, explained […]
Nigeria’s central bank is acting as ‘piggy bank’ to gov’t, says MPC member
Businessam StaffSeptember 20, 2017
Nigeria’s central bank is acting like a “piggy bank” with its funding of the government, a member of the Monetary Policy Committee who said he struggles to understand the regulator’s economic rationale said. Monetary data showed a “sharp rise” in the Central Bank of Nigeria’s financing of the government deficit this year, Doyin Salami said […]