20 Jun

Daily Watch – Zenith becomes Nigeria’s biggest bank, Reps to prevent more AMCON takeovers

  • 2016 has registered a landmark in Nigerian banking when FBN Holding’s status as Nigeria’s largest bank was upset. Zenith became the biggest bank in Nigeria by the size of the balance sheet in 2016. Its growth accelerated from 6.7% in 2015 to 18.3% in 2016, closing the year with an asset base of ₦4.739 trillion. The bank has maintained a faster growth rate than FBN Holdings over the past three years and with a decline in asset base of FBN Holdings in 2015, the leadership gap narrowed significantly. FBN Holdings is second with an asset base of ₦4.736 trillion. UBA is third with total assets of ₦3.50 trillion.
  • Oil pipeline vandalism recorded a drop in April. NNPC’s monthly financial and operations report showed that downstream pipeline sabotage decreased from 94 vandalised points in March to 82 in April, representing a 12.77 percent reduction. The April figures also indicated substantial progress compared to the corresponding period of 2016 in which 214 incidents were recorded. In terms of products’ availability in the period, NNPC’s spokesman, Ndu Ughamadu, noted that the NNPC maintained a stock of over 1.2 billion litres of petrol, which was sufficient for more than 34 days’ forward consumption.
  • Minister of Finance, Kemi Adeosun, says the FG is ready to release ₦350 billion, being the first tranche for implementation of the 2017 budget. According to her, the FG has enough cash available to start executing key projects and initiatives scheduled for the 2017 fiscal year. “We are ready, we are having a cash plan meeting very soon and after that, ₦350 billion will be released as the first tranche of capital releases for the 2017 budget,” she said. Meanwhile, the Minister of Budget and National Planning, Udoma Udo Udoma, said funding of projects would now be on project-based release system to curb waste of public funds by MDAs. Udoma also said part of the requirement for capital releases was evidence of compliance with the Bureau of Public Procurement Act.
  • The Chairman, House of Representatives Committee on Banking and Currency, Jones Onyereri, has said the House will not allow AMCON to purchase new debts from Deposit Money Banks in the country. Onyereri said purchasing fresh non-performing loans of the banks would not be the right decision for the country considering the state of the economy, which is on the path to recovery after sliding into recession.
  • Data from the CBN suggests that Nigeria’s foreign exchange reserves have fallen for nine days in a row. The reserves fell from $30,291,917,668 on June 7, 2017 to $30,209,243,589 as at Friday, June 16, 2017. This is coming after the CBN, last week, injected over $800 million, to meet the requests of customers in the various segments of the market. A breakdown of the intervention shows that the regulator offered the sum of $100 million to authorized dealers interbank wholesale window, while it allocated the sum of $50 million to the SME window. The invisibles segment was designated the sum of $45 million to meet the needs of those who applied for foreign currency to settle Business/Personal Travel Allowances, school tuition, and medicals.