- The overnight naira interbank lending rate eased to 16 percent last Friday, down from 20 percent recorded the previous Friday, following improved cash liquidity after the disbursal of July’s budgetary allocations to federal agencies and other tiers of government. About ₦250 billion ($751 million) belonging to states and local government from July’s budget hit the banking system last week and provided liquidity – total bank surplus with the CBN stood at ₦118 billion on Friday, better than the ₦62 billion recorded the previous Friday.
- Nigeria saw its lowest level of capital inflows on record with a $2 billion drop from $2.67 billion recorded in Q2 2015, to $647.11 million recorded in Q3 2016. According to the NBS, “This provisional figure would be the lowest level of capital imported into the economy on record, and would also represent the largest year on year decrease.” A 75.7 percent drop in the amount of capital coming into the country in Q2 compared to the same period last year was recorded. Services, production and banking attracted the largest chunk of the inflows at $130.98 million, $92.62 million and $90.24 million respectively. While FDI (a 37 percent decline to $133 million) and portfolio investments ($245.3 million) also suffered declines, portfolio investments recorded the steepest decline at 88.8 percent.
- The Bank of Industry says it will increase its funding support to the mining sector in order to improve the sector’s share of GDP. Acting MD, Waheed Olagunju, said the plan to increase sector funding was part of efforts aimed at supporting government’s economic diversification policy. In his words, “We are aware that our government and the private sector are now collaborating to produce the data. Once the credible data is produced, we will be able to catalyse more investment resources into the country, particularly from abroad.”
- FirstNation Airways says it will return to normal scheduled flight operations by September 15. The carrier said its current fleet was IATA Operational Safety Audit (IOSA) certified, undergoing engine maintenance for safety operations in line with industry practice in the industry and quashed media reports that the company was on the verge of folding up. “We are working to grow the fleet as well. All our aircraft have recently undergone C-Check and returned contrary to the blatant lies contained in the said publication,” a part of the company’s statement read. The IATA Operational Safety Audit programme is an internationally recognised evaluation system designed to assess the operational management and control systems of an airline.
- The Federal Mortgage Bank of Nigeria said it made a total income of ₦5.8 billion in H1 2016, as well as an operating surplus of ₦424 million in the period under review, numbers which mark a turnaround for the bank from a loss making entity to a profit. According to its CFO, Oby Nwokedi, who disclosed the numbers while presenting the bank’s half-year financial performance during its Business Performance Review in Abuja, the mortgage firm had recorded losses going back decades.
- The FG has said ₦500 billion would be earmarked in the 2017 budget for social intervention programs, the second time in two years social causes will secure a half trillion naira allocation. The amount would bring the total budgetary allocation for social intervention programs to ₦1 trillion under the new administration. Budget and national planning minister, Zainab Ahmed, told the press that increased awareness on the importance of food and nutrition on child survival and its impact on human development, productivity and economic development would be emphasised during the execution of its social programs.