By Ashemiriogw Emmanuel
The external reserves of Nigeria declined last week by 0.3 per cent or $102.2 million to settle at $41.7 billion compared with $41.8 billion it finished at the preceding week.
This was the first time the foreign exchange (FX) buffers of the nation, which prides itself as the largest economy in Africa, was declining in two months.
Since the prices of crude oil hit over $80 per barrel at the international market, the forex earnings of the country have increased, causing an accretion of the reserves.
Data obtained last week from the Central Bank of Nigeria (CBN) showed that as of Thursday, November 4, 2021, the amount left in the buffers stood at $41.7 billion.
Business Post reports that the last weekly decline in the forex reserves was in August 2021.
On Friday, October 29, 2021, the amount was $41,828,981,480 but this increased to $41.90,814,426 on Monday, November 1 and then retreated to $41,775,272,855 the next day, indicating a decline of about $15.5 million.
Last Wednesday, the reserves further lost $19.3 million to close at $41,755,955,706 and then depreciated a day later to settle at $41,726,778,269.
The reason behind the decline is still sketchy at the moment, but oil prices, which directly influence the inflow of forex into the buffers, continue to trade above $80 per barrel at the global crude oil market.
Business Post reported that at the close of the last week, the Brent crude rose to $81.29, reflecting an increase of 75 cents or 0.93 per cent after initially falling to $80.54 a barrel, while the United States West Texas Intermediate (WTI) crude went up to $79.72 after first depreciating to $78.81 a barrel.
Meanwhile, in the month of October 2021, the Nigerian external reserve rose by about $5.1 billion, which is higher than the $2.8 billion appreciation recorded in September.
Speaking at the apex bank last Monetary Policy Committee meeting in Abuja, the Deputy Governor, Financial Systems Stability Directorate, CBN, Mrs Aishah Ahmad, had mentioned that the improvement in the external sector trend was driven by a 74.72 per cent rise in exports, which is higher than the increase in imports of 1.45 per cent.
CitiTrust Holdings Sells Commercial Paper for 22%
By Aduragbemi Omiyale
An opportunity has opened for commercial paper investors as CitiTrust Holdings Plc is offering the asset class at a coupon of 22.0 per cent per annum under its N50 billion commercial paper issuance programme.
According to details of the exercise obtained by Business Post, the company, in the financial services sector, is selling the debt instrument in four tenors of 90 days, 120 days, 180 days and 270 days.
The minimum subscription for prospective and potential investors is N5 million and can be purchased through any of the registered stockbrokers.
The 90-day instrument is going for 16.1 per cent, the 120-day paper is being sold for 17.5 per cent, the 180-day note is 19.1 per cent, and the 270-day instrument is going for 22.0 per cent.
The offer commenced on November 23, 2022, and is expected to close on Wednesday, December 7, 2022, with the net proceeds to be used for the company’s general corporate purposes and working capital.
CitiTrust said investors would be paid their interests from the operating cash flows of the organisation, with purchases to be settled via direct debit, electronic funds transfers, NIBBS Instant Payment (NIP), NIBBS Electronic Funds Transfer (NEFT) or Real-Time Gross Settlement (RTGS).
CitiTrust is a leading pan-African financial and investment conglomerate owned by reputable institutional and private investors. The company has a focus on high-end financial products and services for its targeted sectors of the economy, with operations in commercial banking, investment banking, wealth management, pension management, insurance and alternative investment.
The firm is a foremost financial solutions provider and has been an intricate part of the Nigerian economy since 2007. It has grown and evolved over the years into an award-winning market leader in the financial sub-sector of the Nigerian economy, establishing its footprints in 12 African countries: Nigeria, Ghana, Rwanda, Botswana, Liberia, Benin Republic, Malawi, Kenya, Tanzania, Uganda, Cote d’Ivoire, South Africa and the UK.
In 2019, the organisation upgraded its operations into a reputable financial services provider to align with the strategic vision of its shareholders to build an enduring institution that delivers cross-functional services to its clientele.
The company’s deep knowledge of the market, dexterity, smooth and reliable processes driven largely by technology and the high quality of its personnel puts it on the cutting edge of strategic Importance with its clientele.
No Individual Should Operate Domiciliary Account in Nigeria—Tope Fasua
By Modupe Gbadeyanka
An economist and former presidential candidate of the Abundant Nigeria Renewal Party (ANRP) in the 2019 general elections, Mr Tope Fasua, has kicked against the opening of a domiciliary account in Nigeria for an individual, calling it an abnormality.
Speaking on a Channels Television’s Saturday breakfast show, he said only corporate organisations involved in international trades should be allowed to operate a dorm account.
As individuals who need foreign exchange to transact any business transaction, they should be given a credit card or prepaid card, which would be loaded with the value of Dollars they require instead of giving them cash.
According to him, this would limit the demand for FX and strengthen the Naira in the forex market segments.
Mr Fasua made these submissions while reacting to the decision of the Central Bank of Nigeria (CBN) to redesign the N200, N500, and N1,000 notes.
“Personal dorm accounts are mostly unnecessary; only companies that are doing international trade transactions or financial market companies should be able to hold dorm accounts because they have a reason to,” the renowned analyst said on the programme monitored by Business Post.
“When I travelled abroad recently, GTBank loaded by card with Dollars, and when I need to spend where I am going, I just use my card,” he added, stressing that, “If you are an exporter, you have export proceeds coming in, you can have a dorm account.
“If you are an importer and you need to pay your customer once in a while, you can have a dorm account as a company, but if every Tom, Dick and Harry can speculate against their own currency, you will never get it out of crises.”
According to him, “The ease at which people move against their currency in this country is too much; it should not be that easy.”
LIBIZFAIR Will Boost Business Opportunities in Lagos
By Modupe Gbadeyanka
The Chairman of Nigeria in Diaspora Commission (NiDCOM), Mrs Abike Dabiri-Erewa, has disclosed that the Lagos Island Business Fair (LIBIZFAIR) will improve business opportunities in the state and also attract more investments.
The former federal lawmaker said this at the opening ceremony of the fair organised by the Lagos Island Connect, in conjunction with the Lagos State Ministry of Commerce, Industry and Cooperatives.
At the programme held at the Tafawa Balewa Square (TBS), Onikan, Lagos, Mrs Dabiri-Erewa, represented by the Head of the Lagos Annex of the agency, Mr Oladipo Odebowale, commended the state government for the initiative.
She noted that the platform provides a unique opportunity for entrepreneurs to showcase their businesses, saying, “This will boost investment and business opportunities in the state.”
The Commissioner for Commerce, Industry and Cooperatives, Mrs Lola Akande, in her remarks, described the empowerment of Micro, Small and Medium Enterprises (MSMEs) as critical to the empowerment of youths.
Represented by the Permanent Secretary in the minister, Mrs Adetutu Ososanya, she noted that building the capacity of youth-oriented enterprises, with the goal of providing opportunities for growth, will lead to an increase in prosperity among Lagos Island youths.
“I believe this platform can leverage socio-economic networking and Information Communication & Technology to provide more interactive opportunities for the teeming youth of Lagos Island and its environs from diverse cultural, religious, social and educational backgrounds to grow their businesses and services, as well as the State’s economy,” she said.
The Commissioner explained that the fair aligns with the policy of Governor Babajide Sanwo-Olu of creating a conducive environment for businesses to thrive, widening access to the market and encouraging networking and collaboration among entrepreneurs.
Also speaking at the event, the Special Adviser to the governor on Sustainable Development Goals & Investment (SDG&I), Mrs Solape Hammond, stressed that the programme was geared towards supporting businesses to thrive at the local government level.
“The study discovered that the youths of Lagos Island are versatile, technologically enabled, driven and willing to be positively engaged, particularly in personal and communal development.
“Though most of them are faced with different challenges yet, there is an enormous zeal to be gainfully engaged rather than being idle, which could contribute to community nuisance.
“Young people in Lagos Island have a brighter vision for the future, and all stakeholders must join together to support them to deliver it,” the governor’s aide said in her presentation on the Lagos Island Youth Needs Assessment Survey.
The co-founder of the Lagos Island Connect, Mrs Yemisi Ransome-Kuti, while addressing participants, noted that the LIBIZFAIR 2022 was geared towards taking businesses in Lagos Island from a local to a global level by investing in the youths and preventing their massive migration to foreign lands.
Latest News on Business Post
- Lagos Fire Service Receives 17 Fire Outbreak Calls in One Day November 28, 2022
- Osun Civil Servants Will Enjoy my Administration—Adeleke November 28, 2022
- CitiTrust Holdings Sells Commercial Paper for 22% November 28, 2022
- WhatsApp Rolls Out Self-Messaging Feature November 28, 2022
- Egbeyinka Elizabeth Shines at 8th Glorious Vision University Convocation November 28, 2022
- No Individual Should Operate Domiciliary Account in Nigeria—Tope Fasua November 28, 2022
- LIBIZFAIR Will Boost Business Opportunities in Lagos November 28, 2022
- NNPC Remits $0 to Forex Reserves from Crude Oil Sales—CBN November 28, 2022
- EU, IFC Launch €25m Fund to Rebuild Ukraine November 28, 2022
- Nigeria Loses N264.4bn as Famfa Oil, Others Flare 170.5BSCF Gas November 28, 2022