30 Jun

Daily Watch – Rivers workers sue Wike, MTN gets license for 4G/LTE

  • MTN Nigeria says it has paid ₦80 billion out of its reviewed ₦330 billion fine. The telcoms firm has also been won the NCC’s auction for a 10-year frequency spectrum licence for the 2.6GHz band, which is expected to “guarantee superior performance for wireless networks, especially 4G internet services. MTN Nigeria’s CEO, Ferdi Moolman, said the company paid ₦30 billion in addition to the ₦50 billion paid earlier in the year. He also said
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29 Jun

Daily Watch – Bread prices go up, Banks lose ₦18b to fraud in 2015

  • The Minister of Finance, Kemi Adeosun has reopened NERFUND and ordered all staff to immediately return to work. This is almost two weeks after she shut down the agency following allegations of misappropriation of funds by the interim management which destabilised activities there. In May, staff disrupted business activities at the agency over claims of embezzlement of ₦700 million. NERFUND was established in 1989 to provide medium to long-term financing to
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28 Jun

Daily Watch – Tax law hinders informal sector, Enugu DISCO to go fully pre-paid

  • President Muhammadu Buhari has told a gathering of business leaders that he did not see the benefit of the naira’s currency peg against the U.S. dollar being removed. The naira ended at ₦282 to the dollar on Monday but was trading at round ₦350 on the black market. Buhari had consistently said he was opposed to the removal of the currency peg but, in an essay published in the Wall Street Journal earlier this month, appeared to back the adoption of a
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27 Jun

Daily Watch – Airlines lose $208 million, Flexible work options come to a Nigerian bank

  • The CBN will become the pioneer seller of naira-settled OTC FX Futures contracts on FMDQ OTC Securities Exchange today. This is exactly a week after two-way quote trading commenced in the Nigerian FX market on the back of transitioning the market from a pegged FX rate regime to a floating one. The OTC FX Futures market will serve to minimise the disequilibrium in the Spot FX market and cause the rate to moderate; attract significant capital
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24 Jun

What impact will #Brexit have on Nigeria?

People talk about political earthquakes. The UK’s decision to end its relationship with the European Union is not so much an earthquake, just for Britain, but a tsunami for the whole world. Britain’s place in the world will shift, and the United Kingdom of Great Britain and Northern Ireland itself, may come to an end.

The vote within the UK highlighted deep divisions. With the exception of London, England voted massively to leave the EU. Scotland, which................   read more

24 Jun

The week ahead – Little pockets of insecurity grow larger

The naira finally strengthened against the dollar, notching up its first gain less than a week after starting to trade without a peg, as the Central Bank of Nigeria seeks to stabilise the market by selling dollars. The naira rose 0.7 percent to ₦282.5 per dollar in Lagos on Wednesday, after dropping as much as 0.5 percent during the week. The CBN had intervened in the market by selling foreign exchange since it ended the currency’s 16-month fix of ₦197-₦199................   read more

24 Jun

Daily Watch – Again, CBN steps into market, NCC in NASS crosshairs

  • The CBN opened its discount window in an apparent bid to save the banking system from a scarcity of funds which sent the interbank interest rate to 74 percent at the close of business on Thursday. The naira had appreciated to ₦283 per dollar as the competition for funds in the money market intensified, sending interest rates to 68 percent. The decision of the CBN to sell $4.2 billion to clear the backlog of matured foreign exchange obligations had triggered
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23 Jun

Daily Watch – Grazing Reserves Bill scales first reading, YEDC investor not refunded a year later

  • The Defence Headquarters has scrapped the Operation Pulo Shield in the Niger Delta and replaced it with Operation Delta Safe. Defence spokesman, Brigadier General Rabe Abubakar, said the decision is to restructure the JTF for better service delivery, efficiency and effectiveness. Under this arrangement, the Joint Operational Areas of the new outfit have been delineated into 3 sectors and 5 Operational Bases covering the entire Niger Delta, Ondo and Akwa Ibom
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22 Jun

Daily Watch – Oil earnings plummet 34% in Q1, Fashola assures on 2NB

  • The naira has attained apparent stability at the interbank market, trading at ₦283 for most of yesterday. The naira opened at ₦253 to the American dollar on the new official market on Monday, but closed its first trading day of the new regime at ₦281.85 after hitting a daily-high of ₦283. CBN sold $4.02 billion worth of forex to 21 banks in order to clear the backlog of existing demands. After the CBN sales, the naira took a downward swing from ₦280/$1
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21 Jun

Daily Watch – Float gets off to bright start, Unions threaten oil industry

  • The CBN has cleared a foreign exchange demand backlog of $4.02 billion on the first day of the implementation of a new foreign exchange regime which allowed the naira to float freely and effectively reflect market realities for the first time. The regulator, through a Special Secondary Market Intervention Sales, cleared the forex demand backlog through spot and forward sales. CBN’s intervention in the market, according to a spokesman, was in line with its
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