The 36 states of the federation and the Federal Capital Territory grew their external debts by $1.37bn (N270bn at the current interbank exchange rate of N197 to a dollar) in five years, investigation has shown.
Statistics obtained from the Debt Management Office on Sunday showed that the external indebtedness of the subnational governments as of December 31, 2010 stood at $2bn.
However, by December 31, 2015, the indebtedness of the states and the FCT to external creditors had grown to $3.37bn. This shows that the subnational governments’ external debts rose by 68.44 per cent in the five-year period.
The Punch had exclusively reported last week that the debt profile of the entire nation rose by N1.2tn in one year.
Some states, over the period, maintained their positions on top of the borrowers’ club, while others jumped on the list.
Lagos State maintained the top position within the period. In 2010, it owed external creditors $400.59m. However, by December 2015, the debt had climbed to $1.207bn.
This means that within the period, the Lagos State Government grew its external debt by $807.31m. This reflects a growth rate of 201.53 per cent. The state holds 35.84 per cent of the country’s subnational external debts.
The external debt of Kaduna State stood at $157.36m by December 31, 2010; making it to occupy the second position on the list of the most externally indebted states of the federation.
By the end of December 2015, the state still maintained the second position with a total of $226.37m. This means that within the period, the state’s external debt rose by $69.01m, reflecting 43.86 per cent increase.
With an external debt of $41.19m in 2010, Edo State was not among the most indebted in the country. However, by the end of December 2015, the state’s external debt profile had leapt to $168.19m, showing a difference of $127m. This means that the state’s external debt rose by 308.34 per cent within the five-year period.
Cross River State owed external creditors $110.91m as of December 31, 2010. By the end of 2015, the figure had risen to $136.4m. This shows an increase of $25.5m, or 22.99 per cent.
Ogun State had an external debt of $81.64m as of December 31, 2010. By the end of last year, it had risen to $103.33m. This reflects an increase of $21.68m or 26.56 per cent.
Katsina and Oyo states were among the most externally indebted states in the country in 2010, but by the end of December 2015, they had reduced their exposure to foreign debts although they remained among the most exposed states.
While Katsina State’s external debt went down from $81.14m to $72.15m; Oyo State’s was reduced from $87.43m to $66.75m.
Among the states least exposed to foreign debts by the end of December 2015 are Taraba, $22.93m; Borno, $23.19m; Plateau, $30.46m; Kogi, $33.63m; and Jigawa, $34.08m.
Insider Dealing: Paul Miyonmide Gbededo Adds Another 612,326 Shares of Flour Mills to His Stake
Paul Miyonmide Gbededo, the Group Managing Director, Flour Mills of Nigeria Plc bought an additional 612,326 shares of the company.
The management stated this in a disclosure statement sent to the Nigerian Stock Exchange on Monday.
The managing director purchased the shares at N27.75 per share on November 20, 2020 at the Nigerian Stock Exchange in Lagos, Nigeria. Meaning, Gbededo has invested another N16,992,046.5 into the company.
This was in addition to the 3,284,867 shares valued at N91,642,269 and 4,200,852 shares worth N117.62 million purchased by Gbededo earlier in the month of November. Bringing his recent purchases to 8,098,045 million shares worth N226,254,315.5. See the details of the latest transaction below.
FCMB Reports 16.4 Percent Increase in Profit After Tax in Q3 2020
FCMB Group Plc, one of the leading financial institutions in Nigeria, reported a 16.4 percent increase in profit after tax for the third quarter of the year.
In the unaudited financial statements released through the Nigerian Stock Exchange (NSE), the lender’s profit before tax grew by 10.2 percent year-on-year to N4.8 billion while profit after tax increased by 16.4 percent to N4.2 billion.
FCBMB Group Plc expanded gross earnings by 4.8 percent to N48.3 billion during the period under review. Similarly, the bank’s net interest income rose by 30.03 percent year-on-year to N22.7 billion.
The strong performance continued across the board as net fee and commission income increased by 0.29 percent to N5.2 billion. Net trading income rose by 39.4 percent year-on-year to N1.82 billion.
Personnel expenses dropped by 7.9 percent to N6.9 billion during the quarter while general and administrative expenses declined by 7.52 percent year-on-year to N7.6 billion. Largely due to the COVID-19 lockdown.
Loans and advances to customers rose by 10.8 percent to N793.14 billion between December 2019 and September 2020. Total desposits from customers during the same period grew by 26.7 percent to N1.2 trillion.
The bank’s total assets increased by 22.12 percent to N2.04 trillion.
Stanbic IBTC Obtains Approvals, License to Establish Life Insurance Subsidiary
Stanbic IBTC Holdings Plc on Friday announced that it has obtained all required Regulatory Approvals and a license from the National Insurance Commission to establish a wholly-owned Life Insurance subsidiary, Stanbic IBTC Insurance Limited (SIIL).
In a statement signed by Chidi Okezi, Company Secretary, Stanbic IBTC and released on Friday, the bank said “The establishment of this new subsidiary essentially complements the bouquet of product offerings by Stanbic IBTC as it continues its goal of being the leading end-to-end financial solutions provider in Nigeria. In this regard, SIIL will aim to facilitate long term insurance for already financially included individuals and will seek to become the preferred Insurer in the Life Insurance Business.
“Stanbic IBTC Holdings PLC, a member of Standard Bank Group, is a full-service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20.1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade deals between Africa, China and select emerging markets. Standard Bank Group is the largest African financial institution by assets. It is rooted in Africa with strategic representation in 21 countries on the African continent.
“Standard Bank has been in operation for over 158 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa; and connecting selected emerging markets to Africa by applying sector expertise, particularly in natural resources, power and infrastructure.”
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