27 Jul

Daily Watch – NSE continues rally, Local oilcos fail to contribute to Content Fund

  • The NSE continued its rally on Wednesday following the decision of the CBN’s MPC to hold key interest rate at 14 percent. Following the decision, the NSE took an upward swing on Tuesday to cross the ₦12 trillion mark for market capitalisation. On Wednesday, the rally continued as the bourse gained ₦577,392,634,642 to close at ₦12,662,732,404,641.14. The All Share Index also leaped to 36,740.77 from 35,065.47 on Tuesday. The naira also appreciated at the parallel market from ₦365 per dollar to ₦364.
  • Some indigenous oil companies have failed to make their contribution to the Nigerian Content Development Fund. The NCDF, which is funded from one percent being deducted from the value of all upstream contracts, is managed by the Nigerian Content Development and Monitoring Board. The Executive Secretary, NCDMB, Simbi Wabote, said international oil companies were complying reasonably in remitting one percent of the value of their contracts but some service companies and indigenous operating firms defaulted in their payment. He said the industry would aspire to domesticate the full capacity and capability required for the integration of Floating Production Storage and Offloading vessels between now and year 2027.
  • Cadbury Nigeria has reported a pre-tax loss of ₦766.4 million for the half-year ended June 2017. This was a worse result when compared to the profit of ₦216.4 million recorded by the firm a year ago. The firm’s filing with the NSE on Wednesday showed that its half-year revenue for 2017 was ₦16.26 billion, compared to ₦13.92 billion posted in the corresponding period of 2016.
  • The National Emergency Management Agency has denied allegations by the House of Representatives that it spent ₦13 billion on internally displaced persons in one month. The agency’s spokesperson, Sani Datti said that the claim by the chairman, House Committee on Emergency and Disaster Preparedness, Isa Ali, was fraudulent and malicious. “For the record, the agency is constrained to inform the public that on the assumption of office by the new director general, only ₦4.6 million was in the coffers for the multitude of problems, including 1.8 million IDPs in the North East,” Datti said.