22 Sep

Daily Watch – Odu’a racks ₦788m for western states, Nigeria Airways pensioners see daylight

  • The FG says it is considering tax credit as a way of driving a revised model for export expansion as well as attract investment in infrastructure. The Budget and National Planning Minister, Udoma Udo Udoma, speaking of the 23rd Nigeria Economic Summit, said “The amount we are spending on critical infrastructure is not enough. The country needs between 3 to 5 percent of its GDP in infrastructure, but we are currently doing 0.5 percent. We are trying to use tax credit for export expansion and to drive investment in infrastructure. We want to encourage public-private partnership.”
  • The FG has approved ₦45 billion for the payment of gratuities and other retirement benefits of former staff of Nigeria Airways. Nigeria Airways was founded in August 1958 as the West African Airways Corporation Nigeria (WAAC). The government initially held 51 percent of the airline, then bought over the stakes held by the Elder Dempster Airlines and the British Overseas Airways Corporation, thus making the airline the flagship carrier of the country. The airline, however, ceased operations in 2003 and was liquidated in 2004.
  • The 35th AGM of Odu’a Investment Company has declared ₦788 million as profit before tax for the financial year ended December 31, 2016. The amount represents a 32 percent increase from the preceding year when the company declared ₦597 million as profit before tax. The management and owner-states of the firm decided at the meeting that a sum of ₦275 million be made available as a dividend to the shareholders, while the states would receive ₦50 million each. This represents a 41.75 percent surge over what they were paid in 2015. The company said that it had paid a cumulative gross dividend of ₦635.77 million to its shareholders between 2014 and 2016. The Group Managing Director of the company, Adewale Raji, said Lagos State would join the group, which was incorporated as a holding company in 1976 to take over the business interests of the former Western State of Nigeria now comprising of Oyo, Ogun, Ondo, Osun and Ekiti, as a full member after the consultant working on its admittance had completed its work.
  • A report on Nigerian banking by Agusto & Co. shows that about 47 percent of the banking industry’s impaired loans are collectively held by the country’s top five banks – Zenith Bank, Guaranty Trust Bank, First Bank, United Bank for Africa, and Access Bank. According to the report, the impaired loans were mainly in the oil & gas, transport & communication sectors, accounting for 37 percent and 11 percent respectively of the industry’s total classified loans. In the oil & gas space, the top five banks accounted for 60 percent of the loans disbursed to this sector “which heightens concentration risks,” the report said. “There have been arguments that given the sheer size of the top five banks’ loan book, they will continue to account for a sizeable chunk of the banking industry’s impaired loans especially in periods of weak macroeconomic fundamentals,” the report stated. The five banks account for 57 percent of the industry’s total assets.