CIBN chief stresses importance of bank loans, economic growth

The President/Chairman of Council of the Chartered Institute of Bankers of Nigeria, Segun Ajibola, says bank loans are vital to economic growth and there is a need for the Deposit Money Banks to enhance credit to the real sectors of the economy.

Ajibola said this during the third Inaugural Lecture of Caleb University in Imota, Lagos State.

He spoke on, “Rhythms and Riddles of Bank Credit: Synergies and Dislocations in Nigeria’s Economic Growth.”

Ajibola, a professor of Monetary Economics, argued that a well-functioning financial system was a key enabler of economic growth.

He said, “Indeed, banks play an important and active role in the economic development of a country. If the banking system of a country is effective, efficient and disciplined, it will bring about rapid growth in the various sectors of the economy.”

The don noted that bank credit was an important determinant of the level of productive investment in any country.

The CIBN chief stressed that mobilisation of savings for investment was one of the most important preconditions for accelerated growth and development.

He explained, “While investment generates savings, it is impossible to sustain a sound investment effort without adequate savings mobilisation; this is where banks come in with their credit management and money creation.

“The economic importance of banks, therefore, lies not in their monetary role but in their capacity as financial intermediaries. At a first glance, intermediation may seem a rather innocuous process – lenders are matched to borrowers. Upon further inspection, however, it is clear that intermediation is a crucial economic process.”

He identified bank loans and advances as the major financial backbone to the Nigerian economy. Ajibola, however, said that this function of banks had been impeded by poor credit/risk management, poor loan recovery, frauds and forgeries, persistent bank robbery, insider dealings/abuses, shareholders’ interference in credit policy and lack of political will to deal with numerous credit abuses.

In his recommendation, the don called on banks and other financial institutions to continue to play the critical intermediating role in the economy by creating a veritable link between the surplus funds units and deficit funds units of the economy.

He also noted that an equitable lending structure should be developed for all the sectors in the economy for inclusive growth.

The CIBN chief said, “Banks should also redefine their lending behavior to favour longer tenor loans which are more impactful for the real sectors of agriculture and manufacturing in the country.

“For bank credit to have the desired effects, however, the other related variables in the economy must be effectively managed. Such variables include inflation, foreign exchange, political stability etc. A priori wise, these are relevant variables in our type economy. Political instability, for example, scares away foreign investors, another key driver of economic growth. Results of our various econometric analyses confirmed the relevance of these other variables.”

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NSE Website Ranked the Best among African Exchanges


The Nigerian Stock Exchange (NSE or the Exchange), the sustainable exchange championing Africa’s growth, is now the highest ranked stock exchange website in Africa. The latest Alexa rankings place NSE website (www.nse.com.ng) among the top 100,000 most popular websites in the world, ahead of 26 other African exchanges’ websites.

Alexa, an Amazon Company, is regarded as one of the most authoritative benchmarks of web traffic in the world. It tracks and reports the detailed website analytics of an unfixed number of domains amongst millions of Internet users. According to Alexa, NSE’s global traffic ranking stood at 78,552 as at December 6, 2017, which represents a 50% increase from its 156,610 position as at December 31, 2016. Closely following NSE in the ranking are Egyptian Exchange, JSE, BRVM and Nairobi Securities Exchange with ranking of 130,301, 155,653, 242,657 and 260,293 respectively.

“We are delighted to see this increase in traffic to our website as it means that we are making the Nigerian capital market easily accessible to investors who are increasingly residing online”, said Olumide Orojimi, Head, Corporate Communications, NSE. “At the NSE, we are committed to bridging the information gap between the Exchange and market participants, knowing the high correlation between market information (stock market prices, market data, corporate actions and news) and decision making. We are glad our website is also helping us to achieve this”.

It will be recalled that the NSE recently upgraded its website to be mobile friendly, with robust content and a cleaner layout and navigation. Explaining the new features and rationale for the new website, Orojimi, stated that “the revamp was fuelled by feedback from users that wanted certain high demand pages easier to navigate and some key changes implemented. For example, using analytics from visits and usage of our website, we added filter functionality to the Corporate Disclosure page to enable users browse through results filed by listed companies easily. Our online visitors can now experience a more vibrant and seamless view of our offerings”.

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NSE Suspends Trading In the Shares of Four Listed Companies

Pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers? Rules), which states that;

If an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will:

(a) send to the Issuer a second Filing Deficiency Notification? within two (2) business days after the end of the Cure Period;

(b) suspend trading in the Issuer? securities; and

(c) Notify the Securities and Exchange Commission (SEC) and the Market within twenty- four (24) hours of the suspension?

Trading in the shares of the following four (4) companies have been suspended today, 4 October 2017:

1.Academy Press Plc

2.Nigerian German Chemical Plc

3.Roads Nigeria Plc

4.Thomas Wyatt Nigeria Plc in accordance with the rules set forth above.

The suspension of the four-listed companies will only be lifted upon the submission of the relevant accounts, provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.

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NSBAG launch: ASHON to operate N50bl commodities exchange in Q3, 2018

The Association of Stockbroking Houses of Nigeria (ASHON), plans to operate a N50bl commodities exchange in Q3, 2018 as part of its efforts in supporting and driving the Agriculture sector in Nigeria. This will be done through the Alternative Securities Exchange Market(ASEM) of the Nigeria stock exchange.

Chairman of the Nigeria Stockbrokers Agribusiness Group(NSBAG) Sir Babatunde Sobamowo disclosed this at the official launch of the initiative geared towards providing structured financing, for the critical value chain in the Agric sector.

Sir Sobamowo said the NSBAG initiative which is in partnership with the Corporate Farmers International and reputable International organizations like International Institute for Tropical Agriculture(IITA), was designed to leverage on the opportunities and prospects of Agro-sector, which is a key sector that has been identified by the Economic Recovery and Growth Plan policy of the Federal Government as one of the major driver of Nigeria’s economy.

According to Sobamowo, the collaboration through NSBAG is focused on food security, reducing the poverty level in the country, reducing urban migration and raising income for Nigerians. He also believed that the NSBAG will create a lot of business opportunities in the Agro-sector through the stock exchange.

Chairperson of the event Dr Kwesi Attah-Krah Director, Country Alignment and Systems Integration of the International Institute of Tropical Agriculture(IITA) in his remarks at the launch said the Agriculture space in Nigeria was witnessing a new dimension, with the possibilities of economic opportunities in the sector.

Dr Kwesi Attah-Krah noted that there was a new awakening with the young people changing the narrative of the sector, from “Agriculture to Agri-coolture”, asserting the fact that with the Nigerian population dominated by the youth, any initiative that does not attract them will have issues.

Keynote speaker at the launch  Professor B. A. Adewunmi from the Federal University of Agriculture, Abeokuta harped on the need for Nigeria to give Agriculture the priority it deserves in the economy.

Acording to Prof Adewunmi  “Nigeria must reposition Agriculture as a business through the engagement of the Nigeria stock exchange”. He also called for an industry led approach to the agro-sector, with the establishment of innovation clusters for the sector in key locations in the country.

National Coordinator of the Corporate Farmers International Prince Ade Ajayi described the launch of NSBAG as a platform for galvanizing the corporate sector and the organized private sector to provide robust funding for Agriculture, through real-time investing. Ajayi was of the strong view that the Agric sector in Nigeria, will witness remarkable transformation through Agri-business.

The Managing Partner for the Corporate Farmers International Mr Akin Alabi informed stakeholders who attended the NSBAG launch, that the initiative was leading a new movement in Agric-financing which was critical to the sustainability of the sector.

In his goodwill message at the event, the President of the Association of Stockbroking Houses in Nigeria(ASHON) Mr Onyenechukwu Ezeagu called for a strong link between the Universities of Agriculture and the Agro-Industry in the country.

ECONOMY: Nigeria’s Outlook Downgraded By Fitch Due To Dollar Shortages

Lack of foreign currency hampering West African economy

Low government revenue poses risk to debt sustainability

Fitch Ratings Ltd. revised the outlook on Nigeria to negative from stable over concerns that a lack of foreign exchange will hamper the economy, and affirmed the west African nation’s rating at B+, four steps below investment grade. While Nigeria’s economy will probably grow at 1.5 percent this year, after contracting by an estimated 1.5 percent in 2016, the non-oil sector will continue to be constrained by foreign currency shortages, the ratings agency said in an e-mailed statement on Wednesday.  Read more

Seplat: Why Is ABC Orjiakor Selling His Shares?

ABC Orjiafor – Chairman/CEO (Seplat) with Oscar Onyema CEO (NSE)

On Tuesday, Seplat Nigeria Plc was the most traded stock on the floor of the Nigerian Stock Exchange after it recorded a transaction volume of about 22.6 million units valued at N8.5 billion indicating a large sale had occurred. Similarly, same pattern  was observed in December 2016, where 7.6 million units where sold on London Stock Exchange. Seplat has a dual listing.

According to records filed in December 21 2016, Seplat reported that it Chairman, Dr. ABC Orjiakor had through its company, Shebah petroleum Development Company limited sold off 7,636,912 units to an existing shareholder Petrolin Trading Limited Read more

Stockbrokers Seek Extension Of Grace For Recapitalisation

Broker at the floor of The Nigerian Stock Exchange

Summary of Stocks for 25th January 2017

Nigerian stocks closed trading on a positive note as the all share index rose 0.09%. Market capitalization at the close of trading was N9,028,718,438,124.28.

 

NSE All Share Index was 26,240.45 rose 0.09%,  Market capitalization closed at N9.03 trillion Volume of shares traded was 190,006,989.00 units in 2,896 deals.

 

 

Stockbrokers seek extension of grace for recapitalisation

 

Stockbroking firms under the aegis of Association of Stockbroking Houses of Nigeria, ASHON, have appealed to the Securities and Exchange Commission, SEC, to extend the grace period for recapitalization by another three months. Read more

News On The Economy – Part 3

2017 budget will increase spending in productive sector – SEC DG

By BusinessNews Staff on January 25, 2017

The Director-General of the Securities and Exchange Commission, Mr. Mounir Gwarzo,  has said that the Federal Government’s 2017 budget is aimed at increasing the country’s productive sector spending.

Gwarzo on Monday in Abuja said that the budget aimed at resolving most of the economic challenges currently facing country. Read more

News On The Economy – Part 2

Nigeria Sees Oil Hitting Mid-$60s in Coming Months as OPEC Bites

 

Crude oil prices, hovering around $55 a barrel since early December, will climb by about $10 in the coming months as OPEC-led measures to curb a glut take hold, Nigeria’s oil minister said.

“Ultimately, the effects over the next few months will get us to where we want to be, which is in the mid-$60s,” Minister of State for Petroleum Emmanuel Kachikwu said in a Bloomberg Television interview from Rome. Read more

News On The Economy – Part 1

Summary of Stocks for 24th January 2017

 

Nigerian stocks closed trading on a negative note as the all share index dropped -0.05%. Market capitalization at the close of trading was N9,020,836,589,758.87.

NSE All Share Index was 26,217.54 dropped -0.05%. Market capitalization closed at N9.02 trillion, 187,704002.00 units was traded in 3,055 Deals.

 

Nigerian Central Bank Leaves Key Lending Rate Unchanged at 14%

 

January 25, 2017, 1:53 PM GMT

  • Inflation rate is at highest level in more than decade
  • Nigerian economy probably contracted by 1.5% in 2016

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