09 Aug

Daily Watch – Nigeria sues Turkish Airlines, CAMA set for a makeover

  • UK non-oil exports to Nigeria may hit £7.1 billion about (2.93 trillion), by 2030, up from £1.9 billion, (about 795 billion) in 2014, a new report has said. The report titled: Seizing the opportunity: An economic assessment of key sectors of opportunity for UK business in Nigeria, estimated that UK’s Foreign Direct Investment (FDI) footprint in Nigeria could increase to £4.5 billion from £1 billion over the same period. The report, prepared by PwC, on the request of the Foreign and Commonwealth Office, highlighted six goods and services which it said will offer UK businesses the greatest potential for growth. They are machinery and transport equipment, manufactured goods and chemical and related products, telecommunication and information services, transportation and travel, and intellectual property.
  • The current total value of subscribed CBN naira settled future contracts for 12 different maturities stood at $1.7 billion with the NG/US April 26, 2017, contract as the most subscribed at a value of $658.6 million. According to analysts at Afrinvest Securities, the instrument was previously trading at N210/$ before an upward review to N260/$. “Until the supply of FX improves significantly at the interbank market, the mounting demand may continue to pressure rates downwards,” the analysts said. The naira is expected to trade strongly this week as deposit money banks supply US dollars to Bureau De Change operators that funded their accounts last week.
  • The DMO has commenced the process of appointing two international banks as joint lead managers and a local bank as financial advisers for the planned Federal Government Medium Term Note Programme (2016-2018) as well as the issuance of $1 billion out of the $4.50 billion FGMTN programme in 2016. In addition, the federal government is also seeking to retain the services of an international and Nigerian law firms which will act as joint legal advisers for the FGMTN; the legal advisers will be appointed separately by the DMO.
  • The FG has sued Turkish Airlines over the criminal violation of the rights of some Nigerian passengers. The government also indicted the company for violating the enabling law of the Consumer Protection Council. Attorney General, Abubakar Malami, filed a three-count charge against the airline as well as Liker Ayci, board chairman, and Rasak Shobowale, its commercial manager.
  • The CAC is currently finalising the draft bill for the amendment of the Companies and Allied Matters Act to strengthen the regulatory and enforcement powers of the commission. CAC spokesman, Williams Churchill noted that the amendment was needed to enable the commission to keep pace with changing business practices.