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August Inflation Predicted to Edge Higher

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The consumer price index (CPI), which is used to gauge inflation in the country may increase further year-on-year to 17.71 per cent in August 2016, from the 17.13 per cent recorded in July 2016.

Analysts at FSDH Merchant Bank stated this in their latest inflation forecast, noting that they expect the increase to come from the increase in the prices of food items and other non-food items as a result of the continued pressure on the value of the naira.

The National Bureau of Statistics (NBS) is expected to release the inflation rate for the month of August 2016 this week based on the data calendar on its website.

According to the report, the prices of food items that FSDH Research monitored in August 2016 moved in varied directions. For instance, it showed that prices of onions, palm oil, fish, rice and vegetable oil were up by 86.11 per cent, 16.2 per cent, 13.06 per cent, 10.74 per cent and 4.35 per cent while the price of tomatoes, yam, sweet potatoes, Irish potatoes and garri fell by 57.11 per cent, 13.33 per cent, 8.33 per cent, 5.56 per cent and 2.38 per cent.

“Meanwhile, the price of beans and meat remained unchanged. The movement in the prices of food items during the month resulted in a 1.10 per cent increase in our Food and Non-Alcoholic Index to 209.33 points. We also noticed increases in Clothing and Footwear; Housing, Water, Electricity, Gas and other fuels divisions between July and August 2016.

“Our model indicates that the price movements in the consumer goods and services in August 2016 would increase the CCPI to 206.46 points, representing a month-on-month increase of 1.09 per cent. We estimate that the increase in the CCPI in August will produce an inflation rate of 17.71 per cent,” it added.

The Food Price Index (FPI) that the Food and Agriculture Organisation (FAO) released recently showed that the FPI increased in August to a 15-month high. The Index was up by 1.95 per cent compared with July, as most commodity prices rose in August led by dairy, oils and sugar.

The value of the Index in August was the highest since May 2015. The FAO Dairy Index appreciated by 8.63% from July as prices of cheese, whole milk powder and butter were on the increase.

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.

Finance

Stanbic IBTC Obtains Approvals, License to Establish Life Insurance Subsidiary

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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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World Bank to Discuss New $1.5 Billion Loan Request From Nigeria

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Zainab Ahmed

The Finance Minister, Budget and National Planning, Mrs. Zainab Ahmed, on Friday said the Federal Government has met all the conditions for a fresh loan of $1.5 billion from the World Bank.

The minister disclosed this on Bloomberg TV.

She said the multilateral financial institution is in the final stage of approving the loan. The minister explained that the loan will be discussed in the bank’s next meeting and possibly be approved in the same meeting.

In June, the Senate approved the borrowing plans but the World Bank pushed back demanding Nigeria fulfill the conditions attached to the $3.4 billion loan received from the International Monetary Fund (IMF) in May.

Some of the conditions were to increase revenue generation by upping VAT, the introduction of tariff reflective electricity bill, the removal of subsidy and the unification of the nation’s foreign exchange.

Most of which the Federal Government has done despite protests from most Nigerians who called the new policies anti-people given their current situation.

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Nigeria Realises Over N400 Billion from Company Income Tax in the Third Quarter of 2020

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The Federal Government realised N416.01 billion from Company Income Tax (CIT) in the third quarter of the year, according to the latest report from the National Bureau of Statistics (NBS).

This was 3.48 percent higher than the N402.03 billion generated in the second quarter of the year and represents a decline of 20.13 percent year-on-year from N520.89 billion realised in the third quarter of 2019.

A breakdown of the report showed the professional services sector including the telecoms generated the highest amount of CIT at N55.52 billion during the quarter, while the manufacturing sector followed with N42.03 billion.

The banking and financial institutions realised N24.05 billion while the mining generated the least and closely followed by Textile and Garment Industry and Local Government Councils with N120.93 million, N167.51 million and N321.72 million generated, respectively.

The report added that out of the total amount realised during the quarter under review, a sum of N244.70 billion was generated as CIT locally. The federal government collected N70.34 billion as foreign CIT payment and the remain N100.97 billion was received as CIT from other payments.

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