17 Nov

Daily Watch – Court amends ‘impractical’ BVN order, Abia gets $25m World Bank money

  • The interim forfeiture order placed on bank accounts without bank verification numbers has been revoked after the Federal High Court in Abuja modified the order given on 17 October. The FG had obtained a court order directing 19 banks to freeze accounts without BVN and ultimately forfeit the funds in such accounts. Justice Nnamdi Dimgba said some parts of the initial order has been posing some “practical problems,” hence the modification. He was quoted as saying that “having listened to all counsel on record, and with the consent of all parties represented, I hereby revise Relief 4 of the court’s order of October 17, 2017 such that the new Relief 4 shall be: ‘An interim order of the honourable court stopping all outward payments, operations or outward transactions (including any bill of exchange) in respect of the accounts pending the linking of the accounts to a Bank Verification Number.”
  • Fitch Ratings has assigned Nigeria’s upcoming senior unsecured USD-denominated notes an expected rating of ‘B+(EXP)’. The assignment of the final ratings was contingent on the receipt of final documents materially conforming to information already reviewed. The rating agency explained in a statement on Wednesday that the expected rating was in line with Nigeria’s long-term foreign-currency issuer default rating of ‘B+’ with a negative outlook. The rating would be sensitive to any changes in Nigeria’s long-term foreign-currency IDR. On 31 August, Fitch affirmed Nigeria’s Long-Term Foreign-Currency IDR at ‘B+’ with a Negative Outlook. The Long-Term Local-Currency IDR is also ‘B+’ with a Negative Outlook. The Senate Tuesday approved the request by the executive to raise $3 billion from the international capital market through a Eurobond or Diaspora Bond issue or a combination of both to refinance maturing domestic debts, and raise another $2.5 billion from multilateral donor institutions to fund the capital component of the 2017 budget.
  • The Senate on Thursday passed the Bill on Nigerian Automotive Industry Development Plan, as part of efforts to transform the country’s automotive industry. This followed the clause by clause consideration of the bill by the lawmakers during plenary in Abuja. Presenting the report, the Chairman of the Senate Committee on Industries, Sen. Sam Egwu, said the bill was passed by the 7th National Assembly but was not signed into law by then President Goodluck Jonathan. Egwu said the bill, when passed into law, would transform the automotive industry and attract foreign direct investment in auto businesses and allied sectors.
  • Abia has been selected to reap $25 million from the $500 million World Bank Rural Access and Agricultural Marketing Project facility. This was made known to the rural communities’ leaders of the four states from the south-east and south-south zones selected to benefit from the RAAMP by the Abia State Project Coordinator, John Chibunna, at a workshop in Umuahia. Chibunna, who said the workshop was centred on the RAAMP Resettlement Policy Framework, listed the four states to include Abia, Akwa Ibom, Anambra, and Cross River saying that a total of eighteen states in the country will be project beneficiaries. He said the new improved RAAMP will foster value chain addition to agricultural produce from production, processing and storage, reducing wastage arising from the transportation of farm produce as well as mitigating the effect of lack of storage facilities in the state.
  • Stanbic IBTC, a member of Standard Bank Group, has recorded a growth of 77.7 percent growth in profit before tax for the nine months ended 30 September. The PBT stood at ₦45.65 billion up from ₦25.688 billion in the corresponding period of 2016, while profit after tax grew faster by 86.9 percent to ₦37.672 billion, compared with ₦20.152 billion in 2016. The profit was recorded from gross earnings of ₦154.22 billion, which was higher than the ₦114.622 billion recorded in 2016. Net interest income grew by 61 percent to ₦62.947 billion compared to ₦39.089 billion last year, while non-interest revenue went rose to ₦64.280 billion, a 22 percent increase from ₦52.895 billion in 2016. Total assets rose to ₦1.417 trillion from ₦1.053 trillion in December 2016.