Business News
Food Prices Highest In Kogi, Ogun, Anambra In May
Kogi, Ogun and Anambra recorded the highest prices in food items in
the month of May, the consumer price index (CPI) report released by
the National Bureau of Statistics (NBS) has shown.
The report revealed that on a month-on-month basis, food price
inflation was highest in Kogi at 3.
and Anambra at 2. 37 per cent.
Edo, Sokoto and Ekiti recorded price deflation or negative inflation
(general decrease in the general price level of food or a negative
food inflation rate) within the period.
The report said the food inflation on a year-on-year basis was highest
in Kogi at 32.82 per cent, Kwara at 26.
per cent, while Akwa Ibom at 20.06 per cent, Bauchi at 18.65 per cent
and Abuja at 16.91 per cent recorded the slowest rise in year on year
inflation.
According to the report, the composite food index rose by 22.28 per
cent in May 2021 compared to 22.72 per cent in April 2021.
The NBS said the rise in the food index was due to increases in prices
of Bread, Cereals, Milk, Cheese, Eggs, Fish, Soft drinks, Coffee, Tea
and Cocoa, Fruits, Meat, Oils and fats and Vegetables.
On a month-on-month basis, the food sub-index increased by 1.05 per
cent in May 2021, up by 0.06 per cent points from 0.99 per cent
recorded in April 2021.
“The average annual rate of change of the Food sub-index for the
twelve months ending May 2021 over the previous twelve-month average
was 19.18 per cent, 0.60 per cent points from the average annual rate
of change recorded in April 2021 at 18.58 per cent,” the report said.
The report said in May, all items inflation on year on year basis was
highest in Kogi at 25.13 per cent, Bauchi at 23.02 per cent and Sokoto
at 20.11 per cent. On the other hand, Katsina at 15.69 per cent, Imo
at 15.52 per cent and Delta at 14.85 per cent recorded the slowest
rise in headline Year on Year inflation.
The report said all items inflation was highest in Kogi at 2.22 per
cent, Ogun at 2.17 per cent and Cross River at 2.07 per cent, while
Ekiti at 0.02 per cent recorded the slowest rise in headline month on
month with River and Sokoto recording price deflation or negative
inflation (general decrease in the general price level of food or a
negative food inflation rate).
The report said all items “less farm produce” or Core inflation, which
excludes the prices of volatile agricultural produce, stood at 13.15
per cent in May 2021, up by 0.41 per cent when compared with 12.74 per
cent recorded in April 2021.
“On a month-on-month basis, the core sub-index increased by 1.24 per
cent in May 2021. This was up by 0.25 per cent when compared with 0.99
per cent recorded in April 2021.
“The highest increases were recorded in prices of Pharmaceutical
products, Garments, Shoes and other footwear, Hairdressing salons and
personal grooming establishments, Furniture and furnishing, Carpet and
other floor covering, Motor cars, Hospital services, fuels and
lubricants for personal transport equipment, Cleaning, repair and hire
of clothing, Other services in respect of personal transport
equipment, Gas, Household textile and Non-durable household goods.
“The average 12-month annual rate of change of the index was 11.50 per
cent for the twelve months ending May 2021; this is 0.25 per cent
points higher than 11.25 per cent recorded in April 2021,” it said.
Business News
Afreximbank Closes $282 million India-focused Club Deal
By Tony Obiechina, Abuja
The African Export-Import Bank (Afreximbank) has announced the successful completion of a first-of-its-kind India-focussed club deal for US$282.00 million.
Initiated for the exclusive participation of Indian lenders, and arranged by Bank of Africa UK PLC, the primary syndicated club deal saw participation from Indian lenders through their overseas branches and subsidiaries in the Dubai International Financial Centre in the United Arab Emirates, Singapore and Mauritius.
The facility, which was backed by six participating banks and financial institutions, including five that joined as first-time lenders to Afreximbank, helping the Bank achieve its objective of diversifying its funding sources, carries a three-year tenor.
At a commemorative event held in Dubai, U.A.E., to mark the conclusion of the deal, Haytham ElMaayergi, Executive Vice President at Afreximbank, said that the conclusion of the initiative represented a major milestone for the Bank as it sought to fulfil the key objectives of its funding programme.
Highlighting the importance of investing in, and for, Africa, Mr. ElMaayergi said: “this facility will help Afreximbank to continue to play a major role in the development of intra-African trade and trade between Africa and the rest of the world, particularly with India.
It is a testament to the rapid growth in Africa’s economic relationship with India and is evidence of Afreximbank’s growing ability to harness resources into Africa and to fund trade finance related investments that would have a positive impact on trade between Africa and India.”
Chandi Mwenebungu, Director and Group Treasurer of Afreximbank, reviewing the Bank’s vision for Africa, said that its funding objectives included achieving the diversification of its liability book by geography, investor type and tenor.
Also addressing guests at the event were Said Adren, CEO of Bank of Africa UK PLC, who thanked the lenders for their participation, and Zineb Tamtaoui, General Manager of Bank of Africa, Dubai Branch, who expressed appreciation for the opportunity to put together “a landmark deal that would be a stepping stone to many India-focused club deals going forward.”
Business News
Geregu Power Earns N50.4bn From Electricity Sales, Capacity Charges
By Tony Obiechina, Abuja
Geregu Power Plc has generated N50.4bn on electricity sales and capacity charges to Nigerians in the first quarter of 2024.
The power company which is the first listed power company of the Nigerian Exchange Ltd disclosed the performance in its Q1, 2024 financial statement.
The company grew its Q1 revenue by 225 per cent from N14.
2bn in 2023 to N50. 4bn in 2023.A breakdown reveals that Geregu Power sold energy worth N31bn and received N19bn as revenue from capacity charge.
Recall that the power company posted an annual revenue of N82.9bn in the full year of 2023 but it has covered half of the amount in Q1.
The revenue was above the company’s forecast for Q1 2024 when it projected its revenue to rise to N31.24bn.
Geregu Power recorded a profit before tax of N21.9bn up from the N5.3bn recorded in Q1 of last year, reflecting 307.8 per cent growth.
During the period underreview, the company saw its profit after tax rose by 307.3 per cent to N14.46bn from N3.54bn recorded in Q1 of last year. In the full year 2023, the company made N16.1bn net profit.
The net profit was above the company projection of N5.5bn.
Geregu Power took an income tax charge of N7.43bn, up from the N1.8bn in Q1 2023. The tax charges were higher than the N2.7bn projected for Q1 2024.
The company also spent N21.5bn on the cost of sales involving gas supply and transportation, up from the N6.6bn spent on gas supply and transportation in Q1 2023.
Business News
CBN Shakes Up Banking Sector: A Paradigm Shift Unveiled
By Ademola Oyetunji
In a surprising turn of events on Wednesday, the Central Bank of Nigeria (CBN) dissolved the boards of three prominent commercial banks – Keystone, Polaris, and Union Bank. This move, although unanticipated, transpired despite the Central Bank’s recent endorsement of these banks’ financial soundness.
Governor Olayemi Cardoso, at his inaugural address during the Chartered Institute of Bankers of Nigeria (CIBN) annual dinner last year, had lauded Nigeria’s financial sector’s resilience in 2023.
Stress tests conducted on the banking industry indicated its strength under various economic scenarios. However, Cardoso highlighted the need for banks to reassess their responsible banking framework, a sentiment echoed by President Tinubu.President Tinubu’s evident discontent with the Godwin Emefiele-led CBN triggered a comprehensive review of the financial system. A special investigator, Jim Obazee, was appointed to conduct a forensic investigation into Emefiele’s tenure, with damning revelations emerging. Recent developments suggest the initiation of a full-blown financial system reform.
The CBN’s dissolution announcement and the subsequent appointment of new executives for the affected banks, including Yetunde Oni, Mannir U. Ringim, Hassan Imam, Chioma A. Mang, Lawal M. Omokayode, and Chris Onyeka Ofikulu, might mark the beginning of implementing the investigation’s recommendations – a significant cleanup of the financial sector.
Allegations surfaced during the investigation, suggesting non-cooperation from some bank executives and Emefiele’s questionable acquisitions through proxies and cronies. Cardoso may have secured presidential approval for the CBN’s decisive action.
The CBN cited various infractions by the banks, including regulatory non-compliance, corporate governance failures, and activities threatening financial stability. Despite the challenges, the CBN assured the public of depositors’ fund safety and its commitment to upholding a safe, sound, and robust financial system.
The Special Investigator’s report revealed documents pointing to Emefiele’s involvement in Titan Trust Bank and Union Banks’ acquisitions with ill-gotten wealth. The CBN’s swift replacement of the ousted chief executives received widespread commendation, especially from high-net-worth stakeholders aiming to avert a crisis of confidence within the affected banks.
Adewale Aderounmu, an industrialist, applauded the CBN for implementing effective policies under Olayemi Cardoso’s leadership, despite detractors’ actions against the Naira. Ayomide Deepak, an Abuja-based stockbroker, welcomed the action but emphasized the need for caution in handling revelations from the investigation to prevent further economic challenges.
As the CBN wields its regulatory hammer on these banks, the hope is that other bank executives and investors will learn valuable lessons for the sake of the economy. The CBN’s action is perceived as a strategic move aimed at revitalizing the economy and financial system, not a mere vendetta.
*Ademola Oyetunji writes from Ibadan.