- CBN Fails to Print Small Naira Notes in one Year
The Central Bank of Nigeria has not printed small naira denominations for about a year now, causing the scarcity of the notes in the economy, the News Agency of Nigeria reports.
Sources at the CBN hinted that for a year now, the apex bank had not awarded contracts for the printing of the notes such as N5, N10, N20 and N50, which was usually done abroad.
NAN gathered that the recently printed notes in circulation, N200, N500 and N1,000, were produced by the Nigerian Security Printing and Minting Plc.
The NSPM produces currency notes and coins for the CBN and a wide range of security documents for the federal, state and local government establishments, commercial banks and blue chip companies.
According to the NSPM website, the company has the ability to print over 40 million notes weekly.
However, the sources said the high cost of printing banknotes was the reason the apex bank did not give out contracts for their production.
“The cost of printing N50 is almost the same as N1,000. Printing small denominations costs more than the value, and with the present economic situation, it makes sense to print higher notes, which can be done locally by the NSPM,” one of the sources explained.
A worker at First Bank of Nigeria Limited told NAN that throughout the festive season, there were hardly smaller currency notes to give to customers.
The worker, who spoke on the condition of anonymity, said, “We usually request for cash from the CBN through our Cash Management Centre, but recently, we have not been able to get mints of N100 and below.
“We had N50 at one point but it wasn’t in the quantity we are used to getting. We have been telling our customers who call to request for mints that the smallest currencies they can get is N200.”
A political economist, Mr. Jude Ndukwe, said the implication of the situation was that prices of goods were likely to increase since there were no smaller currencies in circulation.
He said, “A bread seller is likely to increase the cost of bread from N350 to N400 simply because he does not want to deal with the difficult task of getting change.
“The same goes for a bus conductor and so forth. This act alone is enough to add to the hardship of the average Nigerians; N10 or N50 may not mean anything to some, but it means a whole lot to millions of Nigerians living in poverty. So the government should do something about this.”
But the Acting Director, Corporate Communications, CBN, Mr. Isaac Okorafor, denied the allegation that the apex bank had not contracted the printing of smaller denomination currencies since 2015.
He stated, “There is no scarcity of smaller denomination notes in the market. People are complaining because we did not make provision for mints to be supplied in smaller denominations during the festive season.
“You see, people are fond of abusing these denominations by spraying them to be stepped on during weddings and other ceremonies. The abuse is even worse during the festive season; so, we decided to make scarce the denominations. But it’s not that we have not been printing them.
“Yes, we haven’t printed abroad but we also print locally, which we have been doing.”
When asked the last time Nigeria actually had the smaller denominations printed, Okoroafor promised to get the details.
He reiterated that it was a crime to hawk or sell mint notes in the country, saying there was an enforcement committee comprising the CBN and the security agencies to check the menace and arrest culprits.
Okorafor said that the CBN was collaborating with the police to ensure that Nigerian currencies were not abused.
FG Borrows N2.36 Trillion from Capital Market in 2020
Mr. Oscar Onyema, the Chief Executive Officer, Nigerian Stock Exchange, said the Federal Government borrowed N2.36 trillion from the nation’s capital market in 2020.
The CEO disclosed this at the 2020 market recap/2021 outlook held on Tuesday.
He said the Federal Government issuances account for 92 percent of the total bond issued in the market in the year.
Onyema further explained that corporate organisations leveraged on low yield environment to expand and embark on debt refinancing, raising a total of N192 billion,
“Capital-raising activities in the fixed income market increased significantly in 2020. The NSE’s bond market capitalisation rose by 35.52 per cent from N12.92tn in 2019 to N17.50tn,” he said.
Onyema noted that “The year 2020 was indeed a historic one for global capital markets. Facing buffeting headwinds, world markets saw sharp swings and steep losses, but largely remained resilient and orderly amid rising uncertainty.
“For The Exchange, renewed investor optimism coupled with improved economic conditions and low fixed income yields, propelled a year end bull run. Of 93 global equity indices tracked by Bloomberg, the NSE All Share Index emerged the best-performing index in the world, surpassing the S&P 500 (+16.26 per cent), Dow Jones Industrial Index (+7.25 per cent) and other global and African market indexes, to post a one-year return of +50.03 per cent.”
Speaking on product results for the year, the CEO said, “The Nigerian equities market got off to a strong start in 2020, returning 10.4 per cent by the eighth trading session. By October, the equities market entered a much-awaited bull run.
“Buoyed by the formal declaration of the US president-elect, unattractive fixed income yields and better-than-expected corporate earnings, the NSE ASI recovered from Q1’20, to close the year at 40,270.72 (+50.03 per cent) and erase losses of -14.90 per cent recorded in 2019.
“During its remarkable year end run, the ASI gained 6.23 per cent in a single trading session which triggered a 30-minute halt of trading on all stocks for the first time since the NSE Circuit Breaker was introduced in 2016 to safeguard market integrity in periods of extraordinary volatility.
“At the close of the year, the NSE’s equity market capitalisation was up by 62.42 per cent, from N12.97tn in 2019 to N21.06tn in 2020 while market turnover saw an uptick of 7.25 per cent, from N0.96tn in 2019 to N1.03Tn in 2020.
“Although Initial Public Offering activity was mute, the value of supplementary issues increased dramatically from 2019, rising by 851.37 per cent to N1.42tn, from N148.77bn.
“Also noteworthy is that for the second consecutive year, equity market transactions were dominated by domestic investors who accounted for 65.28 per cent of market turnover by value (retail: 44.98 per cent; institutional: 55.02 per cent) while foreign portfolio investors accounted for 34.72 per cent.”
Airtel to Announce Financial Results for Nine Months Ended December 31, 2020 on 29 January 2021
Airtel Africa, one of the leading telecommunications companies in Africa, on Wednesday announced it will report its financial statements for the nine months ended December 31, 2020 on January 29, 2021.
The telecom giant disclosed in a statement signed by Simon O’Hara, Group Company Secretary.
The statement reads “Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, will announce its results for the nine months to 31 December 2020 on 29 January 2021.
“Management will host a conference call on the day of results for analysts and investors at 2:00pm GMT.
“Participants are requested to pre-register for the call by navigating to:
“Once registered, participants will receive a calendar invitation with the dial in details for the call.”
Global Credit Rating Affirms Sovereign Trust Insurance A Rating
Global Credit Rating, an international rating agency based in South Africa, has affirmed Sovereign Trust Insurance Plc A rating in its latest report released for the month of December 2020.
In a statement released through the Nigerian Stock Exchange (NSE), Global Credit Rating noted “that the Company has shown a great deal of consistency in her claims paying obligations to her numerous customers spread all over the country.
The Report further stated that “the listing of the Rights Issue in 2019 helped in increasing the Shareholders’ funds of the Company by 33.8%, to N7.8b by the end of the Financial year in 2019 as against the figure of N5.8b in 2018.
“Subsequently, by the third quarter of 2020, the Shareholders’ funds had increased to N8.2b which also translated to a 31% increase in the corresponding period of 2019 with a figure of N6.3b. In the Rating Agency’s opinion, Sovereign Trust Insurance Plc is strong in liquidity with more than adequate claims coverage that compares well to industry averages.
“The capital adequacy of the Underwriting Firm is considered strong according to the rating report and this is underpinned by the sizeable capital base catering for the quantum of insurance and market risks assumed. In this regard, the ratio of Shareholders’ funds to NEP, (Net Earned Premium) improved to 189.2% in the Q3 of 2020 as against 130.9% in the corresponding quarter of 2019.
In terms of peer-to-peer performance comparison, “Sovereign Trust Insurance Plc did very well when compared with other selected insurers in terms of Capital, Total Assets, Gross Premium Income (GPI) and Net Premium Income (NPI).”
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