31 Jul

Daily Watch – CBN commits to FX convergence, NDIC wins ₦500m Lead Bank judgement

  • The CBN says it remains committed to the convergence of rates between the bureau de change and the Nigeria Autonomous Foreign Exchange.The regulator on Friday intervened in the Inter-bank Foreign Exchange Market with the total sum of $462,336,426.74. A breakdown of the forex intervention figures obtained from the regulator indicates that the Retail Secondary Market Intervention Sales (SMIS) received the largest allocation of $267,336,426.74. The CBN also offered the sum of $100,000,000 as wholesale interventions, while the sum of $50,000,000 was allocated to the SMEs forex window. Those requiring foreign exchange for Business/Personal Travel Allowances, tuition and medical fees, among others, got a total allocation of $45,000,000. Confirming the figures, spokesman Isaac Okorafor, said the leadership of the CBN was impressed by the positive impact its current foreign exchange management was having in the manufacturing sector, agriculture and economic activities in general across the country.
  • The Nigeria Deposit Insurance Corporation has secured a landmark ₦556.49 million judgement for the depositors of the defunct Lead Merchant Bank. The judgement, delivered by Justice Ibrahim N. Buba of the Federal High Court, Lagos, was in a matter instituted by First Bank of Nigeria over a claim of indebtedness by Lead Merchant Bank (in-liquidation) to FBN, prior to the revocation of the closed bank’s licence in 2006. NDIC’s spokesman, Hadi Birchington, said that FBN had claimed in its suit before the court that the closed bank became indebted to it under a clearing and settlement banking transaction, and that as at March 2006, when the bank’s licence was withdrawn, the indebtedness stood at ₦556.49 million. The NDIC had told the court that out of a total of 3,925 depositors at the bank’s closure, it had settled only 3,510 depositors as at December 31, 2016, leaving 415 depositors yet to be settled.
  • Transcorp earnings made a turnaround, recording a 134 percent profit in its second quarter which ended on June 30, as against the loss recorded in the corresponding period of 2016. According to a company statement released, the improved earnings is due to the improved economic climate, which impacted operations of its hotel business and increased production in its power business. It recorded ₦4.2 billion as profit after tax (PAT), compared to the loss of ₦12.19 billion recorded in the corresponding period in 2016. It also achieved a growth in profit of a total income of ₦6.22 billion, a 285 percent growth from the loss of ₦11.50 billion recorded in the second quarter of 2016. The company’s total assets capped at ₦264 billion for the period under review from ₦232 billion attained as at December 31, 2016, and shareholders fund grew to ₦93 billion, from ₦86 billion as at December 2016. Commenting on the result, CEO Adim Jibunoh said: “Our results show continued growth and a substantial step-up in profitability despite the volatile economic environment. It was achieved largely through increased power output following improved gas supply.”
  • Ngozi Okonjo-Iweala, former minister of finance, has been named an independent non-executive director at Standard Chartered. Standard Chartered is a British multinational banking and financial services company headquartered in London, England and with a presence in 70 countries. According to a statement released last Thursday, by Jon Tracey, the bank’s media specialist, at the London Stock Exchange, the company said her appointment is effective from November 1, 2017. She will earn £130,000 per annum for her expertise in financial and development financing. Okonjo-Iweala spent 25 years working at the World Bank in various positions. After leaving in 2003, she served as the Nigeria’s finance minister from 2003 to 2006. She returned to the World Bank in 2007, serving as a managing director until 2011 when she was appointed to the role of minister of finance and coordinating minister of economy in Nigeria.