Connect with us

Business News

Manufacturers, Economists Raise the Alarm over Looming Job Losses

Published

on

Share

A recent report by the Manufacturers Association of Nigeria, MAN has predicted imminent mass job losses in the first quarter of 2023 amid the currency crisis.

The Confidence Index Report by MAN indicated that the employment rate would dip below benchmark points to 48.8 points in the first quarter of 2023.

The new figures also represent a downward spiral from the 49.

2 points obtained in the preceding quarter.

“Among the standard diffusion factors, current business conditions and business conditions for the next three months scored above 50 benchmarks while increasing in the quarter. Current Employment Condition (rate of employment) and production level in the next three months scored above the 50 benchmark points, though with a decline in the period.

   

“Employment conditions for the next three months dipped below the benchmark points to 48.8 points which are also below 49.2 points obtained in the preceding quarter.”

Now an economic expert believes the recent Confidence Index Report by MAN may not be unconnected with the controversy and hardship generated by the Central Bank of Nigeria’s currency redesign and swap process.

CEO of Economic Associates (EA), Dr Ayo Teriba, explains that the challenges following the Naira swap will not only lead to job losses but a decline in Nigeria’s Gross Domestic Product, GDP.

He explains that the cash crunch Nigerians battle with would affect businesses as they will sell less than they ought to because of the difficulties in getting cash and patronage.

For over three weeks, Nigerians have continued to lament the non-availability of the naira, a situation that has resulted in bloody protests in Edo, Delta, Lagos, Kwara, Ondo and other parts of the country.

“You don’t have to wait for MAN; the disorderly way with which the Central Bank of Nigeria has gone about the naira redesign will not just lead to job losses but will also lead to a decline in Gross Domestic Product and GDP.

“Nigeria is an N200 trillion economy; let’s say we generated N50 trillion per quarter. Because people can not get money from banks and ATMs, businesses will sell less than they ought to because of the difficulties in getting cash, the economy cannot grow, and job losses will come”, he stated.

Business News

Afreximbank Closes $282 million India-focused Club Deal

Published

on

Afreximbank
Share

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.”

Continue Reading

Business News

Geregu Power Earns N50.4bn From Electricity Sales, Capacity Charges 

Published

on

Share

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.

Continue Reading

Business News

CBN Shakes Up Banking Sector: A Paradigm Shift Unveiled

Published

on

dailyasset-greetings
Share

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.

Continue Reading

Read Our ePaper

Top Stories

NEWS47 mins ago

FG Revokes 924 Dormant Mining Licences as Minister Decries Racketeering

Share The Federal Government has revoked additional 924 dormant mining licenses. Minister of Solid Minerals Development, Dr Dele Alake announced...

NEWS52 mins ago

Sokoto Assembly Adopts Motion to Establish Skills Centre for Displaced Widows

Share The Sokoto State House of Assembly, on Wednesday, approved a motion advocating for the establishment of an Educational and...

NEWS60 mins ago

Undertake Reforms for Functional Justice System – Tinubu Tells Judiciary 

SharePresident Bola Tinubu has called on the nation’s Judiciary to embark on reforms that will ensure functional justice system and...

NEWS1 hour ago

EFCC Withdraws Appeal Against Former Kogi Gov. Bello

ShareThe Economic and Financial Crimes Commission (EFCC), has filed a notice of withdrawal to discontinue an appeal against an order...

NEWS1 hour ago

Establish Base in Sambisa Forest, Zulum Tells Army

ShareGov. Babagana Zulum of Borno has urged the Nigerian Army to establish a military base in Sambisa Forest, to effectively...

NEWS1 hour ago

Alleged N80bn Fraud: Bwala Faults EFCC’s Media Trial, Disregard for Rule of Law

Share Mr Daniel Bwala, Former Spokesman of Former Vice President Atiku Abubakar on Wednesday faulted the Economic and Financial Crime...

NEWS1 hour ago

NCAA Suspends Dana Airline’s AOC Effective April 24

ShareThe Nigeria Civil Aviation Authority (NCAA) has written to the management of Dana Airlines, informing it of the suspension of...

Education2 hours ago

Borno Varsity Secures Accreditation in all Programmes – VC

Share The outgoing Vice Chancellor of Borno State University (BOSU), Prof. Umar Sandabe, says the five-year old institution has secured...

NEWS2 hours ago

FRSC Apprehends 222 Trailers Conveying 3,169 Passengers

ShareThe Federal Road Safety Corps (FRSC) inter-agency task force, has apprehended 222 trailers conveying 3,169 passengers in Niger, Bauchi, Taraba...

NEWS2 hours ago

Rivers Finance Commissioner Resigns.

ShareRivers Commissioner for Finance, Mr Isaac Kamalu, resigned his appointment on Wednesday. He is the second commissioner to resign from...

Copyright © 2021 Daily Asset Limited | Powered by ObajeSoft Inc