16 Sep

Daily Watch – Nigerian cities to drive Africa growth, FirstNation postpones comeback

  • Nine Nigerian cities have been named as key drivers of middle-class growth in sub-Saharan Africa between 2015 and 2030. According to a Euromonitor International report, rising urban income in Aba, Ibadan, Maiduguri, Ilorin, Lagos, Kaduna, Abuja, Kano, Port Harcourt, and Benin will play a major role in middle-class growth across the region. Kenya’s Kisumu, Mombasa and Nairobi, are projected to take the lead in household income growth in East Africa. Johannesburg, Pretoria, Abuja, and Lagos are all expected to outstrip Kenya’s top cities in middle-income growth. According to the report, an additional 600,000 households in Abuja will join those already earning more than $10,000 by 2030. Lagos, Johannesburg, and Pretoria are expected to see an additional 500,000, 400,000 and 300,000 respectively join the middle class.
  • Nigeria sold ₦183.24 billion in treasury bills at an auction on Wednesday, with mixed yields on all the tenors, data from the DMO showed on Thursday. The debt office raised ₦48.10 billion of three-month paper at 14 percent, down from 14.38 percent at an Aug. 31, auction which sold ₦48.45 billion worth of the 6-month paper at 17.77 percent, higher than 17.50 percent previously. A total of ₦86.69 billion was sold in the 1-year debt at 18.48 percent against 18.42 percent at the last auction.
  • The CBN says the Micro, Small and Medium Enterprises (MSMEs) fund has hit ₦220 billion. The bank which announced this at a three-day sensitisation fair in Enugu said the regulator sought to explain its activities to the people, as well as acquaint them with the opportunities available in the bank. The acting spokesman, Isaac Okorafor said 60 percent of the MSMEs Fund was designed for women and women-owned enterprises. According to him, some states had already accessed the fund to secure loans of ₦1 billion and ₦2 billion.
  • Lagos governor, Akinwunmi Ambode approved a total sum of ₦740 million as compensation for host communities of Parcel B comprising Yegunda, Abomiti and the international airport site of the Lekki Free Trade Zone. According to Commerce, Industry and Cooperatives commissioner, Prince Rotimi Ogunleye, the development was aimed at sustaining a cordial relationship between the host communities and LFTZ investors. Ogunleye added that modalities were being put in place to ensure a hitch-free payment of the approved ₦740 million, adding that the payment would be effected with immediate effect. The sum of ₦65 million was paid early this year to landowners affected by the ongoing Dangote projects which include a petrochemical plant, gas project, fertiliser and 650,000 barrels per day refinery project.
  • Construction firm, Arab Contractors has appealed the judgement debt of ₦163 million slammed on it by an arbitration panel in Calabar over the destruction of a house. The firm’s appeal was filed before the Cross River High Court challenging the order of the panel in favour of the landlord of the house to deduct the money from nine company bank accounts. The arbitration panel had in August 2015 heard a garnishee proceedings against Arab Contractors by Essien Bassey Edem, the owner of a property rented by the company’s staff executing projects in Calabar. The property, a six bedroom maisonette semi-detached duplex incorporating two rooms servants’ quarters on each side, was gutted by a fire in August 2010, destroying an estimated ₦85 million in valuables.
  • FirstNation Airlines have postponed the resumption of its flight operations, earlier scheduled for Thursday. The airline had on August 17, suspended operations to enable it to carry out engine maintenance on its fleet. According to reports, the airline may resume operations on September 17 immediately after maintenance is carried out on the aircraft. This comes as Arik Air, Nigeria’s biggest airline, resumed operations on Wednesday – after a 16-hour shutdown. The airline’s spokesman, Adebanji Ola, in a statement, said the carrier had resumed operations after sorting out its insurance issues.