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Naira Exchanges at N410 Per Dollar on Thursday



Dollar Naira
  • Naira Exchanges at N410 Per Dollar on Thursday

The Nigerian Naira declined against the US dollar on the parallel market on Thursday as businesses fear the Central Bank of Nigeria could devalue the local currency to halt falling foreign reserves.

The broad-based slowdown in global growth amid fast-spreading coronavirus is dictating Nigeria’s economic standing, especially with low global oil prices.

Experts predicted that low oil prices would hurt the nation’s ability to generate revenue in 2020 and fund its N10.59 trillion budget for the year.

The federal government had benchmarked crude oil at $57 per barrel for the year while oil is presently trading at $33.27 per barrel, representing a decline of $24 per barrel.

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According to traders, speculators have started hoarding the US dollar as they are projecting a surge in price to around N400 per US dollar. This, experts said could worsen the whole situation given the nature of the economy, a petrol-dollar economy.

Temitayo Sikiru, a business analyst with Investors King, said that is “one problem with us Nigerians, the same thing is happening with Coronavirus when certain persons hike the price of sanitizers due to situational surge in demand, a global pandemic.”

According to Dapo Alade, a software engineer and a social commentator, “everyone wants to take advantage of the news by engaging in panic buying.” He explained that “We have never had a history of devaluation in recent times, hence the rush to take advantage of the situation.”

Investigation revealed that the US dollar was exchanged at N410 at Apapa while it closed at N400 in the Festac area.

JPMorgan had predicted that the Central Bank of Nigeria (CBN) would devalue the local currency by 10 percent against the US dollar in the second quarter of the year if crude oil trades between $30-40 per barrel.

This, the bank’s analyst expects to increase if the price of crude dip to $20-30 from the current level.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


Insider Dealing: Paul Miyonmide Gbededo Adds Another 612,326 Shares of Flour Mills to His Stake



Paul Miyonmide Gbededo, the Group Managing Director, Flour Mills of Nigeria Plc bought an additional 612,326 shares of the company.

The management stated this in a disclosure statement sent to the Nigerian Stock Exchange on Monday.

The managing director purchased the shares at N27.75 per share on November 20, 2020 at the Nigerian Stock Exchange in Lagos, Nigeria. Meaning, Gbededo has invested another N16,992,046.5 into the company.

This was in addition to the 3,284,867 shares valued at N91,642,269 and 4,200,852 shares worth N117.62 million purchased by Gbededo earlier in the month of November. Bringing his recent purchases to 8,098,045 million shares worth N226,254,315.5. See the details of the latest transaction below.


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FCMB Reports 16.4 Percent Increase in Profit After Tax in Q3 2020




FCMB Group Plc, one of the leading financial institutions in Nigeria, reported a 16.4 percent increase in profit after tax for the third quarter of the year.

In the unaudited financial statements released through the Nigerian Stock Exchange (NSE), the lender’s profit before tax grew by 10.2 percent year-on-year to N4.8 billion while profit after tax increased by 16.4 percent to N4.2 billion.

FCBMB Group Plc expanded gross earnings by 4.8 percent to N48.3 billion during the period under review. Similarly, the bank’s net interest income rose by 30.03 percent year-on-year to N22.7 billion.

The strong performance continued across the board as net fee and commission income increased by 0.29 percent to N5.2 billion. Net trading income rose by 39.4 percent year-on-year to N1.82 billion.

Personnel expenses dropped by 7.9 percent to N6.9 billion during the quarter while general and administrative expenses declined by 7.52 percent year-on-year to N7.6 billion. Largely due to the COVID-19 lockdown.

Loans and advances to customers rose by 10.8 percent to N793.14 billion between December 2019 and September 2020. Total desposits from customers during the same period grew by 26.7 percent to N1.2 trillion.

The bank’s total assets increased by 22.12 percent to N2.04 trillion.

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Stanbic IBTC Obtains Approvals, License to Establish Life Insurance Subsidiary



stanbic IBTC Insurance

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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