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FG Okays Fresh N28bn Budget Support for 35 States

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  • FG Okays Fresh N28bn Budget Support for 35 States

The Federal Government has approved a fresh budget support loan facility for 35 states across the country.

Each of the states will get N800m, totalling N28bn to meet their salaries and other obligations.

The Minister of Budget and National Planning, Udoma Udoma, disclosed this to State House Correspondents on Thursday at the end of a meeting of the National Economic Council presided over by Vice-President Yemi Osinbajo at the Presidential Villa, Abuja.

Udoma said the Minister of Finance, Mrs. Kemi Adeosun; and the Central Bank Governor, Godwin Emefiele, had been directed to effect payments.

Udoma said the Accountant General of the Federation reported to Council that approval had been received and CBN had been directed to pay N800 million to each of the 35 states of the Federation.

Only Lagos State is not taking the loan.

The minister said, “The Accountant General reported to the council that approval has been received and CBN has been directed to pay N800m to each of the 35 states of the federation.

“Governors expressed appreciation to the Federal Government for the restoration of the Budget Support Loan Facility for July and August 2017.”

Adeosun also informed the council that the country recorded the highest amount of Value Added Tax in October with over N89bn.

She added that the target was N120bn monthly.

On monthly was assets and declaration scheme, she said there was progress and the list of 500 Nigerians who are believed to have under declared their assets had been obtained.

The scheme will offer amnesty to all tax defaulters.

The Executive Vice-Chairman of the National Agency for Science and Engineering Infrastructure was also said to have briefed the council about an homegrown proposal to the Independent National Electoral Commission for the replacement of the card readers in the conduct of elections in the country.

The proposal is a made-in-Nigeria “Solar-Powered Electronic Voting System” to effectively mitigate current electronic woes.

The same proposal which has already been presented to INEC is also expected to be presented to the National Assembly.

The balance in the Excess Crude Account as of November 17 was put at $2,309,693,583.35, while the Stabilisation Fund Account was put at N6,689,072,836.11.

The balance in the Natural Resources Development Fund stood at N100,314,169, 190.23 as of November 17, 2017.

The council also discussed the audit of revenue generating agencies.

The NEC was informed that some of the agencies granted some “questionable loans.”

Out of the 18 agencies that were audited, the committee had completed work on 13 agencies; work is still ongoing in two while three are not revenue generating.

The 13 agencies where work has been completed include NIMASA, NNPC, NPA, FIRS, NPDC and DPR.

The two outstanding are Nigeria Customs Service and NCC.

Osinbajo, however, directed the committee to conclude its report under four weeks and report back to council at the next meeting.

Udoma also briefed the council on the growth being experienced in the economy.

He said, “Signs of recovery had been observed since Q3 2016 and the recovery consolidated in Q3 2017 with GDP doubling to 1.40 per cent Non-oil GDP contracts in Q3 2017 by 0.76 per cent after growing in Q1 R Q2 2017.

“While the Services sector is still in the negative, the Manufacturing Sector grows negative in Q3 2017 also.

“Due to high inflationary pressures Household consumption expenditures remain constrained, though it appears such pressure is easing. Headline inflation has declined since January reflecting tight monetary policy. Food price increases have remained persistent but slowing down.

“The total value of capital importation at the end 2017 of Q3 stood at $4.14bn (131.3 per cent growth year on year).”

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

Peter Obaseki Retires as Chief Operating Officer of FCMB Group Plc

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The Board of Directors of FCMB Group Plc has announced the retirement of Mr. Peter Obaseki, the Chief Operating Officer of the financial institution, with effect from March 1, 2021. He was also an Executive Director of the Group.

His retirement was approved at a meeting of the Board of the Group on February 26, 2021. This has also been announced in a statement to the Nigerian Stock Exchange (NSE) by the financial institution.

The Chairman of FCMB Group Plc’s Board of Directors, Mr Oladipupo Jadesimi, thanked Mr. Obaseki for his valuable service and excellent support to the Board for many years.

FCMB Group Plc is a holding company divided along three business Groups; Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Investment Banking (FCMB Capital Markets Limited and CSL Stockbrokers Limited); as well as Asset & Wealth Management (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited).

The Group and its subsidiaries are leaders in their respective segments with strong fundamentals.

For more information about FCMB Group Plc, please visit www.fcmbgroup.com.

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Banking Sector

COVID-19: CBN Extends Loan Repayment by Another One Year

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Central Bank Extends One-Year Moratorium by 12 Months

The Central Bank of Nigeria (CBN) has extended the repayment of its discounted interest rate on intervention facility by another one-year following the expiration of the first 12 months moratorium approved on March 1, 2020.

The apex bank stated in a circular titled ‘Re: Regulatory forbearance for the restructuring of credit facilities of other financial institutions impacted by COVID-19’ and released on Wednesday to all financial institutions.

In the circular signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, CBN, the apex bank said the role-over of the moratorium on the facilities would be considered on a case by case basis.

The circular read, “The Central Bank of Nigeria reduced the interest rates on the CBN intervention facilities from nine per cent to five per cent per annum for one year effective March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy.

“Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020.

“Following the expiration of the above timelines, the CBN hereby approves as follows:

“The extension by another 12 months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities.

“The role-over of the moratorium on the above facilities shall be considered on a case by case basis.”

It would be recalled that the apex bank reduced the interest rate on its intervention facility from nine percent to five percent and approved a 12-month moratorium in March 2020 to ease the negative impact of COVID-19 on businesses.

To further deepen economic recovery and stimulate growth, the apex bank has extended the one year-moratorium until February 28, 2022.

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Finance

MTN Nigeria Generates N1.35 Trillion in Revenue in 2020

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MTN Nigeria Grows Revenue by 15.1 Percent from N1.169 Trillion in 2019 to N1.35 Trillion in 2020

Despite the COVID-19 pandemic and challenging business environment, MTN Nigeria realised N1.346 trillion in revenue in the financial year ended December 31, 2020.

The leading telecommunications giant grew revenue by 15.1 percent from N1.169 trillion posted in the same period of 2019.

Operating profit surprisingly jumped by 8.5 percent from N393.225 billion in 2019 to N426.713 billion in 2020.

This, the telecom giant attributed to the surge in finance costs due to increased borrowings from N413 billion in 2019 to N521 billion in 2020.

MTN Nigeria further stated that the increase in finance costs was the reason for the decline in growth of profit before tax to 2.6 percent.

MTN Nigeria grew profit before tax by 2.6 percent to N298.874 billion, up from N291.277 billion filed in the corresponding period of 2019.

The company posted N205.214 billion profit for the year, a 0.9 percent increase from N203.283 billion recorded in the 2019 financial year.

Share capital remained unchanged at N407 million. While Total equity increased by 22.3 percent from N145.857 billion in 2019 to N178.386 billion in 2020.

MTN Nigeria’s market price per share increased by 61.8 percent from N105 to N169.90.

While market capitalisation as at year-end also expanded by 61.8 percent to N3.458 trillion, up from N2.137 trillion.

The number of shares issued and fully paid as at year-end stood at 20.354 million.

MTN Nigeria margins were affected by Naira devaluations and capital expenditure due to the new 4G network coverage roll-out.

Margins were adversely affected by the effect of naira devaluation and expenses associated with new sites’ roll-out to boost 4G network coverage in FY’20.

“On the former, we note that MTNN expanded the scope of its service agreement with IHS Holding Limited and changed the reference rate for converting USD tower expenses to NAFEX (vs CBN’s official rate previously). Thus, over the full-year period, the company’s operating margin contracted by 1.9 ppts YoY to 31.7%,” CardinalStone stated in its latest report.

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