- The NCC has earned ₦55.5 million from the auction of two slots of 25MHz in the 5.4GHz spectrum. At the conclusion of the eight-hour bidding process in Abuja yesterday, Cobranet Limited and Swift Networks Limited, beat four other companies to emerge winners. Each of the two winners got one of the two slots at the 11th round at the cost of ₦27,659,347.10. The winners can only roll out wireless broadband services in Lagos as the spectrum only covers the state, according to NCC. “The two successful companies, by this result, are provisionally awarded the slots, and have up to January 5, 2017, to pay ₦25,784,347.10. This is the balance of the winning amount excluding the amount paid earlier as Intention to Bid Deposit (IBD).” said NCC’s Executive Commissioner (Technical Services), Ubale Maska, who supervised the auction process. Swift Networks CEO, Charles Anudu, said the process was very engaging, “but transparent.” Cobranet’s CEO, Jamil Chaptini, said his company would deepen Nigeria’s broadband penetration with the 5.4GHz slot it won. The four other companies which bided but lost were Tizeti Networks, E-Kennet Limited, Steam Broadcasting and Communications Limited and Juniper Solutions Limited.
- Nigeria plans to sell ₦95 billion ($302 million) worth of bonds on December 14, its last debt auction for the year, the Debt Management Office said on Tuesday. The office said it would sell ₦35 billion of a bond maturing in 2036; v25 billion of paper maturing in 2026 and ₦35 billion of debt maturing in 2021, using the Dutch auction system. Results of the auction are expected to be released on the following day. All the bonds on offer are reopenings of previous issues. Africa’s biggest economy issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.
- The area controller of the Tin-Can Island Port Command of Customs, Bashar Yusuf, said the command generated over ₦25.7 billion from import duties and levies in the month of November. The port said it contributed ₦25.6 billion as revenue into the federal government’s purse in September and ₦26.2 billion in August, bringing to about ₦77.5 billion the amount generated by the command as revenue between August and November 2016. According a statement signed by command spokesman, Uche Ejesieme, the controller promised that the command would continue to explore all avenues for revenue collection. This comes amid calls by terminal operators for a review of import duty payable on imported vehicles to aid the implementation of a new ban on importing vehicles over the nation’s land borders. The terminal operators, under the guise of the Seaport Terminal Operators of Nigeria, called for a return of the import duty payable on vehicles to 20 percent from the current 70 percent tariff imposed by the Goodluck Jonathan administration in 2013.
- An ambitious target set by NSE CEO, Oscar Onyema in 2012 to achieve US$1 trillion in market capitalisation by 2016, is off target by more than US$970 billion a few weeks to the end of 2016. Currently, there are about 16 stock exchanges in the world with a market capitalisation in excess of $1 trillion and they are mainly in North America, Europe and Asia. In Africa, the Johannesburg Stock Exchange remains the biggest, with a current market capitalisation slightly above US$1 trillion as at December 2. The next biggest is the Egyptian Exchange with a market capitalisation of about US$56 billion. The Nigerian bourse’s market capitalisation, the third biggest in Africa was ₦8.86 trillion or $29 billion at the close on December 2, based on an exchange rate of US$305, just about three percent of the 2016 US$1 trillion target. In 2012, the market capitalisation of the Exchange stood at ₦8.94 trillion ($57.83 billion at an average exchange rate of ₦156 at the time). This means that the average market value of the exchange has fallen by more than half in dollar terms since that target was set. The NSE market capitalisation hit an all-time high of US$90 billion in 2014 before a crash in crude oil prices and the subsequent introduction of capital controls led to a flight of foreign investors. A dry up in IPOs and new listings since 2012 have ensured that market capitalisation has not increased to the set target over the last five years.
- Nigeria and Morocco have signed a joint venture to construct a gas pipeline that will connect the two nations, as well as some other African countries to Europe, Nigeria’s foreign minister, said at the weekend. The agreement was reached during a visit by the Morocco’s King Mohammed to the Nigerian capital Abuja, Geoffrey Onyema said, adding that the pipeline project would be designed with the participation of all stakeholders. “In this agreement, both countries agreed to study and take concrete steps toward the promotion of a regional gas pipeline project that will connect Nigeria’s gas resources, those of several West African countries and Morocco,” Onyema told reporters in Abuja. Onyema said the project aimed to create a competitive regional electricity market with the potential to be connected to the European energy markets. No timeline was given for when the pipeline construction work will start and how much it will cost.