Nigeria’s Stabilisation Fund Drops to $201m

Image

By Adedapo Adesanya

The balance in Nigeria’s stabilisation fund has now dropped to $201 million following the withdrawal of $150 million, the Nigeria Sovereign Investment Authority (NSIA) has disclosed.

Last week, President Muhammadu Buhari directed that the sum of $150 million be withdrawn from the NSIA stabilisation fund to augment disbursements by the Federation Accounts Allocation Committee (FAAC) to the three tiers of government for June 2020.

Business Post had earlier reported that FAAC disbursements dropped in previous months from N716 billion in January to N647 billion in February and the Minister of Finance, Mrs Zainab Ahmed, noted that it further dropped to N581 billion in March 2020.

According to the Minister, the withdrawal would be used to augment the June 2020 federation accounts and allocation committee (FAAC) planned disbursements to the three tiers of government.

This aligns with directives established in the act which states that – “Section 47(2) of the NSIA (Establishment etc.) Act 2011 provides that the authority shall have the right to utilize capital and assets in the Stabilisation Fund to supplement resources available to stabilize the national economy, subject to a formal request from the honourable minister of finance of Nigeria.”

The Fund is a special account held by the Central Bank of Nigeria (CBN) and managed by the NSIA on behalf of the Federation as a pool of funds the government can draw from to cushion serious economic challenges facing it, like recently, fall in oil prices and the COVID-19 pandemic.

The finance minister further said the money would henceforth augment FAAC allocations until the end of the current economic crisis caused by the deadly global coronavirus pandemic.

Speaking on the development, the NSIA Chief Executive Officer, Mr Uche Orji, in an interview with Premium Times said, “So, even after the $150 million is disbursed to government in June, about $201 million would still be left for us to continue to invest and generate more earnings. What we are giving to the government is actually $100 million of capital they gave us and another $50 million of the returns we earned.”

Speaking on the withdrawal, Mr Orji said, “The NSIA (Establishment etc.) Act 2011 is clear on our role. The NSIA is, in part, to serve as a stabilisation mechanism for the country through the Stabilisation Fund.

“Beyond the withdrawal, we are also exploring other avenues to support the country through various social investment initiatives.”

The NSIA is owned by the federal government (45.83 percent), state governments (36.25 percent), local governments (17.76 percent) and the Federal Capital Territory (0.16 percent).

Share
Related Stories
Image
02-March-2024

NGX Indices Nosedive by 1.23% as Traders Resume Profit-Taking

By Dipo Olowookere The bears made a quick return to the Nigerian Exchange (NGX) Limited after leaving the stage for the bulls for a day as investors reassessed the impact of the hike in the benchmark interest rate by the Central Bank of Nigeria (CBN) on Tuesday on their investments. On Friday, the key performance indicators of the bourse closed lower by 1.23 per cent as a result of renewed selling pressure, especially in the energy and industrial goods sectors. Business Post reports that at the close of transactions on the first trading session of March 2024, the industrial goods

Image
04-March-2024

Meristem Analysts Value Transcorp Power at N2.3trn

By Aduragbemi Omiyale Analysts at Meristem Research have put the value of Transcorp Power Plc at about N2.3 trillion (precisely N2.290 trillion), higher than its current value of N1.8 trillion. The power-generating firm joins the Nigerian Exchange (NGX) Limited today, Monday, March 4, 2024, by introduction. It will be the second GenCo (Generating Company) to list its shares on the domestic stock exchange. The first was Geregu Power Plc owned by Mr Femi Otedola, which joined in October 2022. Transcorp Power, a subsidiary of Transcorp Plc, a firm controlled by Mr Tony Elumelu, listed today on the bourse about 7,500,000,000

Image
04-March-2024

Newly-Listed Transcorp Power Targets N500bn Revenue by 2031

By Adedapo Adesanya The latest company to join the Nigerian Exchange (NGX) Limited, Transcorp Power Plc, has announced a revenue target of N500 billion by 2031, tapping opportunities in the capital market and sustainable energy. This was disclosed by the Managing Director of the firm, Mr Peter Ikenga, during the Facts Behind the Listing held at bourse on Monday. The firm, owned by businessman and Chairman of UBA Plc, Mr Tony Elumelu, listed its stocks on the Main Board of the nation’s flagship exchange by introduction. It listed 7,500,000,000 ordinary shares of 50 Kobo each at N240.00 per share. Speaking

Image
05-March-2024

Investors of Unlisted Securities Lose N43bn

By Adedapo Adesanya It was a bad day for investors of unlisted securities in Nigeria as the NASD Over-the-Counter (OTC) Securities Exchange ended the first trading session of the week on a negative note with a 3.11 per cent loss triggered by four stocks on the platform. The culprits were UBN Property Plc, Aradel Holdings Plc, Central Securities Clearing System Plc, and Resourcery Plc. They were under selling pressure during the trading session. This resultantly trimmed N43 billion from the market capitalisation of the bourse to N1.449 trillion from N1.542 trillion, as the NASD Unlisted Security Index (NSI) dropped 35.53

More Stories
Image
05-October-2018

Jumia, Amadeus Launch Africa’s First Flight Marketplace

By Adeniyi Ogunfowoke Leading travel technology company, Amadeus, has partnered with Jumia for a new flights marketplace on Jumia that will be a step further towards making travel in Africa simple and affordable. The platform aims to enable travel agents, airlines, and travel websites to bring all flight content online, to offer customers the best available prices for their flights. Current statistics indicate that 90 percent of the flight market is still offline while only 10 percent exists online. This comes in the wake of increased flight bookings on Jumia’s flights portal, with an explosive growth of 400 percent between

Image
31-January-2020

Trouble for Nigeria as Oil Hits $56 Per Barrel, Below $57 Benchmark

By Adedapo Adesanya Panic continues to grip the global oil market as price of the international benchmark futures, Brent crude, dropped below $57 per barrel on Friday afternoon, spurred by the spread of the coronavirus in some countries. Coming home, this is a big worry for the Nigerian government, which pegged the average price of crude oil this year to $57 per barrel in the 2020 budget signed into law last month by President Muhammadu Buhari. As at the time of this report, the Brent crude was trading down by 60 cents or 1.05 percent at $56.73 per barrel, while

Image
04-August-2023

Apprehended Vessel MT PRAISEL Certified by NMDPRA—Navy

By Adedapo Adesanya The Nigerian Navy has said the vessel arrested for allegedly transporting stolen crude on Thursday was certified by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the agency of government responsible for regulating midstream and downstream petroleum operations in Nigeria. The Navy, in a statement, said the vessel MT PRAISEL was duly approved by NMDPRA to load 1,114,721 Litres of High Pour Fuel Oil (HPFO) from Greenmac Energy Storage/Tarus Jetty Koko from July 26 to August 8, 2023. Business Post had reported that a private security outfit Tanita Security Services (TSS), owned by former Niger Delta

Image
22-September-2022

Stock Investors Lose N12bn Amid Extremely Low Trading Volume

By Dipo Olowookere Investors trading stocks at the Nigerian Exchange (NGX) Limited lost N12 billion on Wednesday on the back of fresh profit-taking. Also, the market was significantly quiet during the session as traders stayed away to monitor happenings in the global space, especially in the United States, where the Federal Reserve further increased interest rates to curb rising inflation. Yesterday, only 51.9 million shares worth N590.0 million exchanged hands in 2,981 deals compared with the 147.6 million shares worth N2.4 billion transacted on Tuesday in 3,323 deals, indicating a decline in the trading volume, value and number of deals

Image
03-May-2023

FrieslandCampina, IGI Pull NASD Market Capitalisation Below N1trn

By Adedapo Adesanya The value of the NASD Over-the-Counter (OTC) Securities Exchange, which is measured by market capitalisation, finished below the N1 trillion psychological mark on Tuesday, May 2. This occurred after the duo of FrieslandCampina Wamco Nigeria Plc and Industrial and General Insurance (IGI) Plc weakened the unlisted securities market by 1.00 per cent at the close of transactions. The market capitalisation of the bourse ended the trading session at N999.99 billion compared with the previous trading session’s value of N1.010, according to data obtained by Business Post. FrieslandCampina lost N5.42 yesterday to quote at N74.00 per unit compared with

Image
16-September-2019

Five Stocks With Possible Annualized Return of 197%

By Modupe Gbadeyanka Last week, the year-to-date loss of the Nigerian Stock Exchange (NSE) reduced to 11.62 percent after the market expanded by 1.28 percent on Friday. The stock market has not been strong this year as a result of events in the domestic and international spaces, including the 2019 general elections in Nigeria, late announcement of cabinet by President Muhammadu Buhari, declining oil prices, trade spat between the United States and China amongst others. But despite all these, some stocks have been projected to perform well this year at the market and analysts at Meristem Research have pinned five

Image
24-August-2017

Goldberg Announces Sponsorship of Cultural Festivals

By Modupe Gbadeyanka As part of efforts aimed at a continuous promotion of the culture and traditions of the people of Southwest Nigeria, Goldberg, Nigeria’s leading culture-centric beer brand, has announced plans to sponsor various cultural festivals across the region.  The festivals, which include Osun Osogbo, Udiroko, Oranyan, Ojude Oba, Olojo and Oyemekun, are scheduled to hold between the months of August and November. Commenting on the plans for the sponsorship, Mr Emmanuel Agu, the Portfolio Manager, Mainstream Lager and Stout Brands, Nigerian Breweries Plc, said with the sponsorships, the brand is reiterating its commitment to supporting the promotion of

Image
08-February-2017

Big Brother Nigeria: Revealing How Hard It Is To Do Business In Nigeria

By Modupe Gbadeyanka The Nigerian edition of “Big Brother” has the same mix of larger-than-life narcissists, banality and backstabbing found in every other version of the reality-television show. But an extra dose of controversy was added to the fall-outs and flirtations when Nigerians discovered that their programme, in which contestants are locked in a house and filmed 24/7, was being made in South Africa. On January 24th the country’s information minister, Lai Mohammed, opened an investigation into “the issue of possible deceit”, urging those who had “bombarded” his office with complaints to stay calm. MultiChoice, the production company behind “Big

Ad
Ad
Recent Stories
Image
05-March-2024

Investors of Unlisted Securities Lose N43bn

By Adedapo Adesanya It was a bad day for investors of unlisted securities in Nigeria as the NASD Over-the-Counter (OTC) Securities Exchange ended the first trading session of the week on a negative note with a 3.11 per cent loss triggered by four stocks on the platform. The culprits were UBN Property Plc, Aradel Holdings Plc, Central Securities Clearing System Plc, and Resourcery Plc. They were under selling pressure during the trading session. This resultantly trimmed N43 billion from the market capitalisation of the bourse to N1.449 trillion from N1.542 trillion, as the NASD Unlisted Security Index (NSI) dropped 35.53

Image
05-March-2024

Naira Value Improves at Official Market, Deflates at Parallel Market

By Adedapo Adesanya The Naira appreciated further against the greenback in the Nigerian Autonomous Foreign Exchange Market (NAFEM) segment of the FX market on Monday, March 5 by N14.06 or 0.9 per cent to trade at N1,534.19/$1 compared with last Friday’s value of N1,548.25/$1. The improvement in the value of the domestic currency happened as the forex market attempts to find stability after months of turbulence due to a shortfall in the supply of Dollars into the system. Yesterday, the value of forex trades depreciated by 39.7 per cent or $117.37 million to $178.63 million from the $296.00 million recorded

Image
05-March-2024

Oil Market Falls Despite OPEC+ Cut Extension

By Adedapo Adesanya  The oil market fell slightly on Monday, as demand headwinds outweighed a widely expected extension of voluntary output cuts through the middle of the year by the Organization of the Petroleum Exporting Countries and its allies (OPEC+). Brent futures dropped 81 cents to quote at $82.74 a barrel while the US West Texas Intermediate (WTI) weakened by $1.22 to trade at $78.75 a barrel. The OPEC+ producers agreed over the weekend to extend their voluntary oil output cuts of 2.2 million barrels per day into the second quarter to cushion the market amid global economic concerns and

Image
05-March-2024

Investors Mop up Nigerian Stocks on Economic Optimism

By Dipo Olowookere The Nigerian Exchange (NGX) Limited witnessed a 0.10 per cent growth on Monday amid optimism that the trip of President Bola Tinubu to Qatar over the weekend will yield positive results. At the Nigeria-Qatar Business and Investment Forum in Doha, Mr Tinubu assured Qatari investors that they would not face any bottleneck while attempting to repatriate their funds. This assurance was welcomed by stock investors, who saw light at the end of the tunnel for the nation’s economy, which is currently suffering because of the shortage in the supply of foreign exchange (FX) into the market. Since

Image
04-March-2024

UK Announces £37.3m to Boost Livelihoods in Nigeria, Others

By Adedapo Adesanya The United Kingdom has announced new funding for the Mobile for Development Programme to help more people access mobile and digital technologies to find new opportunities and boost their livelihoods in Nigeria and other developing countries. UK’s Minister for Development and Africa, Mr Andrew Mitchell MP, during a speech at Mobile World Congress last week, announced that the UK is providing £37.3 million of new support for the Mobile for Development Programme. The new UK funding for innovative mobile phone technology will help change lives in developing countries around the world by harnessing AI technology to provide

Image
04-March-2024

Newly-Listed Transcorp Power Targets N500bn Revenue by 2031

By Adedapo Adesanya The latest company to join the Nigerian Exchange (NGX) Limited, Transcorp Power Plc, has announced a revenue target of N500 billion by 2031, tapping opportunities in the capital market and sustainable energy. This was disclosed by the Managing Director of the firm, Mr Peter Ikenga, during the Facts Behind the Listing held at bourse on Monday. The firm, owned by businessman and Chairman of UBA Plc, Mr Tony Elumelu, listed its stocks on the Main Board of the nation’s flagship exchange by introduction. It listed 7,500,000,000 ordinary shares of 50 Kobo each at N240.00 per share. Speaking

Image
04-March-2024

DisCos Must Promptly Respond to Customers’ Complaints—FCCPC

By Aduragbemi Omiyale Electricity distribution companies (DisCos) in the country have been charged to respond to customers’ complaints quickly for better service delivery. This task was given to the energy firms by the Federal Competition and Consumer Protection Commission (FCCPC), which said the companies must design a quick response mechanism to address issues from their customers. Speaking last Saturday at a four-day one-stop-shop for addressing billing, metering, transformer, connection, disconnection, customer service and other electricity consumer issues in Ikeja Electric coverage areas, the acting executive chairman of FCCPC, Mr Adamu Abdullahi, said the highest number of complaints received by the

Image
04-March-2024

Omokungbe Wants Implementation of Initiatives on Women’s Entrepreneurship

By Aduragbemi Omiyale A former Rector of Yaba College of Technology (YabaTech), Lagos, Mr Obafemi Omokungbe, has called for the implementation of programmes and initiatives designed to promote women’s entrepreneurship in Africa. Speaking at the just-concluded 10th anniversary of the African Women Foundation for Nation Building (WINBAFRICA) in Lagos, Mr Omokungbe, a fellow of the Nigerian Society of Engineers (NSE), also appealed to African countries to renew their commitment to women’s empowerment, saying it is a crucial step towards nation-building. According to him, the journey toward women’s empowerment in Africa involves a comprehensive approach that spans various sectors, including education,

Image
04-March-2024

NGX Group Declares 75 Kobo Final Dividend Amid 57.4% Surge in FY’23 Earnings

By Aduragbemi Omiyale A final dividend of N1.5 billion, amounting to 75 Kobo per share has been declared by the board of the Nigerian Exchange (NGX) Group Plc for the 2023 financial year. This brings to N1 the total dividend to be paid by the company after paying 25 Kobo (N495.5 million) as interim dividend at mid-year. In its audited financial statements for the year ended December 31, 2023, the NGX Group said its gross earnings increased by 57.4 per cent to N11.8 billion in FY 2023 from N7.5 billion in FY 2022 because its performances in core revenue and

Image
04-March-2024

Red Line Rail: Labour Party Demands Value for Money

By Aduragbemi Omiyale The Lagos State chapter of the Labour Party has tasked Governor Babajide Sanwo-Olu to ensure the recently commissioned Red Line Rail does not turn out to be another failure due to poor maintenance culture. In a statement by its Publicity Secretary, Mrs Olubunmi Odesanya, the opposition party appealed to the state government to ensure its sustainability. While greeting residents of the metropolis on the project, which was commissioned last Tuesday by President Bola Tinubu, the Labour Party faulted the timing of its completion, saying the ruling All Progressives Congress (APC) ought to have put the initiative in