Connect with us

Finance

Nigeria to Borrow From World Bank, China, Japan

Published

on

World Bank

The presidency on Thursday said it had approved an external borrowing plan after the cash-strapped African economy plunged into official recession.

“Low cost, long-term loans (1.25% interest, 20yr tenor)” would be sought from the World Bank, African Development Bank, China’s Exim Bank and the Japan International Cooperation Agency, it announced.

A Eurobond would also be offered “in due course” and parliament has still to sign off on the plan, President Muhammadu Buhari’s office added in a series of tweets.

Recession in Nigeria was confirmed last month, when official data showed output in the three months to the end of June fell 2.1 percent — the second successive quarter of negative growth.

That followed months of turmoil including a failing currency, rising double-digit inflation, and foreign exchange shortages that have hit business, especially imports and investment.

The decline has laid bare OPEC-member Nigeria’s over-reliance on oil revenue and the lack of economic diversity, after global oil prices began free falling from mid-2014.

Nigeria’s government is dependent on oil export sales for 70 percent of its revenue. Militant attacks on facilities in the Niger delta have compounded the effects of the worldwide slump in crude prices.

Buhari has also blamed the economic troubles on his predecessors, saying he inherited a treasury that was “virtually empty” and that “mind-boggling” sums of public cash had been looted.

He has vowed to recover the money, prosecute corrupt officials and streamline government, cutting waste and improving efficiency, as well as diversify the economy, particularly agriculture.

The government said the external loans would be used mainly in the agriculture, power, mining development and healthcare sectors.

A record 6.1-trillion-naira ($19.4-billion) spending plan was announced in this year’s federal budget to try to stimulate growth.

International Monetary Fund managing director Christine Lagarde visited Nigeria in January but said at the time that no programme was needed.

AFP

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Banking Sector

Union Bank CEO, Godson Chukwuemeka Okonkwo Acquires 2.4 Million Shares in the Bank Ahead of Acquisition

Published

on

Union bank - Investors King

The Chief Executive Officer, Union Bank Plc, Godson Chukwuemeka Okonkwo, has purchased 2,431,917 ordinary shares of the bank, according to the latest disclosure filing from the lender.

The CEO acquired the 2,431,917 shares of Union Bank at N4.90 per share on Thursday 6th May 2021 from the floor of the Nigerian Exchange Ltd.

Okonkwo’s N11.916 million investment was after Investors King reported a possible acquisition of the bank by Zenith Bank or Access Bank following sources cited by Bloomberg.

Bloomberg said, “Atlas Mara Limited, the London Stock Exchange-listed pan-African banking group started by Mr. Bob Diamond has received a number of approaches for its 49.97 per cent holding in Lagos-based Union Bank of Nigeria.”

It also stated that Atlas Mara received interests from Nigerian and Middle Eastern lenders for its remaining assets on the continent, according to Bloomberg sources.

The sources claimed the banks in talks with Atlas Mara asked not to be identified as talks are private. But they mentioned Nigeria’s Zenith Bank Plc, Access Bank Plc and Morocco’s Attijariwafa Bank as some of the banks that have so far expressed interests in acquiring Union Bank.

Continue Reading

Banking Sector

Zenith Bank, Access Bank, Others Express Interest in Acquiring Union Bank

Published

on

Atlas Mara - Investors King

Zenith Bank and Access Bank are some of the financial institutions in talks to acquire Atlas Mara Ltd.’s 49.97 percent stake in Union Bank Plc.

Bloomberg said, “Atlas Mara Limited, the London Stock Exchange-listed pan-African banking group started by Mr. Bob Diamond has received a number of approaches for its 49.97 per cent holding in Lagos-based Union Bank of Nigeria.”

It also stated that Atlas Mara received interests from Nigerian and Middle Eastern lenders for its remaining assets on the continent, according to Bloomberg sources.

The sources claimed the banks in talks with Atlas Mara asked not to be identified as talks are private. But they mentioned Nigeria’s Zenith Bank Plc, Access Bank Plc and Morocco’s Attijariwafa Bank as some of the banks that have so far expressed interests in acquiring Union Bank.

Middle Eastern banks and private equity suitors have also shown interest, according to the people. Some potential buyers have indicated they may acquire all of Atlas Mara’s remaining assets in Africa, which would include its Zimbabwe unit, the people said.

Atlas Mara has been working with Rothschild & Co. to consider options for its Union Bank stake. No final decisions have been made, and there’s no certainty the deliberations will lead to a transaction, the people said.

Representatives for Atlas Mara and Zenith Bank didn’t immediately respond to requests for comment. Attijariwafa Bank Managing Director Ismail Douiri and a representative for Access Bank declined to comment.

Speaking on the matter, Frontier and Sub-saharan Africa Banks’ Analyst, Renaissance Capital, Adesoji Solanke, on Thursday said this is good for Atlas Mara.

He said “Good for Atlas Mara if they’re able to exit successfully, as they’ve been selling a bunch of assets over the past year, to KCB and Access Bank respectively across different markets. Whether they get a good valuation for Union Bank is another thing.

“We don’t think it’ll be a transformational deal for Access or Zenith (Return-on-Equity dilutive for both), but could be a good way for the Middle Eastern banks to get a decent foothold in the market. We suspect getting the other private equity investor block to sell will be critical as we wouldn’t expect a strategic bank investor to desire a minority shareholding.”

Continue Reading

Finance

Nestle Nigeria Reports N12.4 Billion Profit After Tax in Q1 2021

Published

on

Nestle Nigeria - Investors King

Nestle Nigeria Plc, a food and beverage specialty company headquartered in Lagos and majorly owned by Nestle S.A of Switzerland, grew revenue to N87.258 billion in the first quarter (Q1) of 2021 from N70.329 billion filed in Q1 2020.

The company disclosed in its unaudited financial statement released in late April.

Gross profit stood at N34.743 billion in the quarter, up from N31.658 billion achieved in the same quarter of 2020.

Results from operating activities rose from N17.538 billion in Q1 2020 to N20.314 billion in Q1 2021.

While finance income contracted from N335.242 million in Q1 2020 to N123.340 million in Q1 2021. Finance costs rose to N1.435 billion in the quarter, up from N417.928 million recorded in Q1 2020.

Net finance income/cost stood at N1.312 billion, up from N82.686 million in Q1 2020.

Profit before tax rose to N19.002 billion in the quarter under review, better than the N17.455 billion achieved in the corresponding quarter of 2020.

Nestle Nigeria paid N6.602 billion as income tax for the period, slightly higher than the N6.259 billion paid in Q1 2020.

Profit after tax expanded to N12.400 billion in the quarter, up from N11.195 billion filed in Q1 2020.

Continue Reading

Trending