Turnover of transactions in the Fixed Income and Currency markets amounted to ₦9.75 trillion in August, 2016, according to the FMDQ OTC securities exchange.
A statement posted on FMDQ OTC platform said that the figure represented a decrease of 23.49 per cent or ₦2.99 trillion from amount recorded in July.
The statement added that the figure also represented a year-on-year decline of 15.88 per cent or ₦1.84 trillion.
According to the statement, activities at the Foreign Exchange market accounted for 23.29 per cent compared to 27.56 per cent recorded in July.
It said that Treasury Bills transactions accounted for 33.02 per cent of total turnover during the period while secured money accounted for 36.65 per cent.
“Transactions in the foreign exchange market settled at 3.16 billion dollars in August, a drop of 66.53 per cent ($6.28bn) compared with the value recorded in July.
“The second Naira-settled OTC FX Futures contract (NGUS AUG. 24, 2016), with a total outstanding amount of 152.48 million dollars, priced at $/₦310, matured and was settled within the month.
“The CBN revised the rates on all outstanding OTC FX Futures contracts, whilst a new 12-month contract – NGUS AUG. 16, 2017 was introduced at $1/₦241.00,’’ the statement said.
The statement said that member-member trades stood at 260 million dollars during the period, a decline of 69.80 per cent.
It added that member-client trades also declined by 62.40 per cent or 4.78 billion dollars from the previous month and 68.46 per cent or 6.26 billion dollars year-on-year.
The statement said that at the interbank market, the naira appreciated by 1.56 per cent to close at ₦316.24 to a dollar for the month, while at the parallel market, it depreciated by 9.93 per cent to close at ₦413.00 to a dollar.
Rising Operating Costs, Exchange Rates, Service Charge Increased Airfares by 100%
Price of air tickets rose by 100 percent across several routes as rising operating costs, high foreign exchange and surged in service charge forced airline operators to raise airfares.
Airlines attributed the increase to a series of price adjustments and the introduction of new fees by the Federal Airport Authority of Nigeria (FAAN). According to them, airline firms were given special concessions, which will continue to push price up and could hit an average of N100,000 for even the Lagos/Abuja route.
Speaking on the situation, Captain Ado Sanusi, the Managing Director of Aero Contractors, said airline companies could not access forex at the official rate while the FAAN had upped its fees.
He said “We were buying dollars at N360 and it went to N380 but you can’t get it for less than N480.
“We are paying VAT at 7.5 per cent. We are paying 15 per cent duty on our spare parts. The boarding passes, we pay 15 per cent duty on it.
“The passenger service charge has increased by FAAN. So, don’t look at one component but look at the total reason for the increase.
“Yes, there is an increase in demand but it is caused by the lack of aircraft and this lack of aircraft is caused by unavailability of spare parts which is also caused by dollar scarcity.”
Tony Elumelu Receives Licence to Kick Start Heirs Insurance Limited, Heirs Life Assurance Ltd
The Chairman of Heirs Holdings, Tony O. Elumelu, on Friday said the company has received operating licences from the National Insurance Commission (NAICOM) for its two new insurance companies, Heirs Insurance Limited (HIL) and Heirs Life Assurance Limited (HLA).
The Chairman disclosed this on his social media page.
In his words, he said “I am proud to announce that the Nigerian Federal Government, through the insurance regulator, the National Insurance Commission (NAICOM), has officially issued the operating licences for our new Group insurance companies – Heirs Insurance Limited (HIL) and Heirs Life Assurance Limited (HLA).
“This represents an important milestone of a long-term strategic journey in providing much needed, quality, & valuable financial services, to a broad demographic in Nigeria. Insurance should not be a luxury, and just as we have democratised other sectors, we will democratise insurance – applying our tried & tested business philosophies.
“Fueled by the determination to improve lives & leave a legacy in the African private sector, we have embarked on this journey to revolutionise the insurance space – deploying technology, customer understanding & operational excellence.
“It has been a five-year journey, but with the optimism & the resilience that have brought us this far, it has been worth the wait.
“I would like to warmly thank our new CEOs—Dr. Adaobi Nwakuche, MD/CEO of Heirs Insurance and Niyi Onifade, MD/CEO of Heirs Life Assurance, our Board members, regulatory partners, those who have believed in this dream, despite the obstacles, & those who have cheered us on.”
This is coming barely two weeks after Mr. Elumelu announced Transcorp has acquired Afam Power for N105 billion.
Ndubuisi Ekekwe Moves to Deepen Capabilities Through Free Weekly Business Lessons
In a bid to deepen business and individual capabilities across the African continent, Prof. Ndubuisi Ekekwe, Founder of Fasmicro and the Lead faculty, Tekedia Institute, on Sunday said he will commence free business lessons to enhance accumulation of capabilities.
In a message forwarded to all members of the platform, Tekedia.com, Prof. Ekekwe, explained that when businesses accumulate capabilities, they move upstream and create new competitive tentacles which eventually form the foundation of their growth.
“More so, because of the capabilities, they protect their market shares through strategic moats against competitors and new entrants,” he stated.
Prof. Ekekwe plans to send out two business lessons per week to engage Tekedia’s growing community on the mechanics of business systems. “Each piece would be prepared to pass across a business lesson.”
Prof. Ndubuisi Ekekwe writes regularly in the Harvard Business Review and has spoken at global events — explaining and teaching the mechanics of business systems and nation-building.
To start receiving his free business lessons sign up here.
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