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CBN Releases $100m, Naira Rises to 397/$

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Forex Weekly Outlook November 7-11
  • CBN Releases $100m, Naira Rises to 397/$

The Central Bank of Nigeria on Thursday offered $100m in currency forwards, to be settled within 60 days, currency traders said, quoting a notice from the CBN.

The central bank has been selling dollars to try to narrow the spread between the naira’s official and black market exchange rates.

This came just as the naira recorded a slight gain against the United States dollar, rising from 398/dollar on Wednesday to 397/dollar on Thursday.

The CBN had on Wednesday intervened in the Bureau de Change segment of the market, selling $10,000 to operators aside the $10,000 it sold to them on Tuesday.

The Acting Director, Corporate Communications, CBN, Mr. Isaac Okorafor, said the special intervention of $10,000 for the BDCs was meant to meet the upsurge in the forex requests of low-end customers, which have been on the sudden increase in the past few days.

According to him, the special intervention does not in any way contradict the bank’s newly amended sale policy of selling not more than $10,000 only to the BDCs once a week.

He further explained that the intervention arose due to the increasing demand for forex by Nigerians to address other legitimate needs.

Meanwhile, the CBN spokesman also disclosed to newsmen that the CBN was collating retail requests from authorised dealers upon which sale would be finalised

The central bank had on Monday injected $240m into the foreign exchange market.

Specifically, It released the sum of $90m to meet requests for invisibles such as business travel and personal travel allowances, medical and school fees, while the sum of $150m was also made available to authorised foreign exchange dealers in the interbank wholesale auction window same day.

Economic and financial analysts said the spate of interventions and dollar supply by the central bank would determine the direction of the naira in the coming weeks.

On the back of the previous forex supply by the CBN, the naira had appreciated to 375/dollar early last week.

The local currency however weakened to 383/dollar last Thursday before dropping to 390/dollar last Friday.

“The latest dollar injections are yet to fully percolate into the forex market; when that happens the naira will appreciate further,” a currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, said.

The naira closed at 306.2 to the dollar on Thursday, same level it closed the previous day.

The CBN had on Tuesday hinted of plans to offer dollar forwards to be delivered within two months to offset a backlog of matured foreign exchange obligations to manufacturers, airlines, fuel importers and agriculture businesses.

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.

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Despite COVID-19, FG Realised N1.53 Trillion from Value Added Tax in 2020

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Value added tax

Despite COVID-19, FG Realised N1.53 Trillion from Value Added Tax in 2020

The Federal Government of Nigeria has started seeing the positive effect of series of policy adjustments made to up the nation’s revenue and gradually move away from unstable oil revenue.

Nigeria generated N1.53 trillion from Value Added Tax (VAT) in 2020, an increase of 29.3 percent when compared to the N1.18 trillion posted in 2019, the National Bureau of Statistics (NBS) stated in its latest report.

According to NBS, VAT rose by 38.2 percent when compared to N1.11 trillion filed in 2018.

Breaking down the report, professional services contributed N162.32 billion during the period under review, This was followed by the manufacturing sectors with N154.15 billion.

Accordingly, non-import VAT realised expanded by 30.5 percent to N763.01 billion in 2020, against N584.6 billion in 2019.

Non-import foreign VAT grew by 17 percent from N359.5 billion in 2019 to N420.4 billion in 2020.

As expected, import VAT jumped by 44,6 percent from N240.5 billion filed in 2019 to N347.7 billion in 2020.

Despite lockdown and weak economic activities, the Federal Government through a 50 percent increment in VAT from 5 percent to 7.5 percent was able to up VAT revenue by 29.3 percent.

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Julius Berger Plc Pre-tax Profit Decline by 30.7 Percent in Q4, 2020

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Julius Berger pix

Julius Berger Plc Pre-tax Profit Decline by 30.7 Percent in Q4, 2020

Julius Berger Plc posted a 30.65 percent decline in pre-tax profit to N5.12 billion for the final quarter of 2020.

In the financial statements released on Tuesday, the leading construction company, reported N74.04 billion in revenue in the fourth quarter, an increase of 2.43 percent when compared to N72.29 billion posted in the same period of 2019.

Julius Berger Key Financial Highlights Q4, 2020

  • Nigeria’s revenue expanded by 4.21 percent year-on-year to N72.30 billion.
  • While Europe & Asia revenue dipped by 40.07 percent year-on-year to N1.74 billion.
  • Similarly, revenue from building works depreciated by 56.37 percent to N10.72 billion.
  • However, revenue from civil works rose by 35.38 percent from the corresponding period to N55.8 billion.
  • Services added N7.54 billion revenue, representing an increase of 15.84 percent year-on-year.
  • Cost of sales grew by 13.19 percent year on year to N60.1 billion.
  • Julius Berger recorded other gains/losses of N83.89 million.
  • The construction company grew investment income to N142.79 million.
  • Finance costs jumped by a whopping 388.99 percent year-on-year to N1.79 billion.
  • Earnings Per Share rose by 19.76 percent year on year to N3.94.

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Board of UBA Approves Financial Statements, Dividend Payment for 2020

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UBA

Board of UBA Approves Financial Statements, Dividend Payment for 2020

The Board of United Bank for Africa Plc has approved the Group Audited Consolidated and Separate Financial Statements and final dividend for the year ended December 31, 2020.

The bank stated in a statement signed by Bili A. Odum, Group Company Secretary.

It said “Please refer to the announcement dated January 12, 2021 which notified the Nigerian Stock Exchange and the investing public of the Board Meeting of United Bank for Africa Plc.

“Please be informed that the Board of United Bank for Africa Plc at its meeting which held on Tuesday, January 26, 2021 considered and approved the Group Audited Consolidated & Separate Financial Statements for the year ended December 31, 2020 and payment of a final dividend, subject to the approval of the Central Bank of Nigeria.

“Further to the above, kindly be advised that the Nigerian Stock Exchange and the investing public would be immediately notified upon approval of the Group Audited Consolidated & Separate Financial Statements for the year ended December 31, 2020 by the Central Bank of Nigeria.”

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