Connect with us

Finance

Nigeria’s Total Imports Hit Three Years High in Q3, 2020

Published

on

surplus

The total value of goods imported into Nigeria in the third quarter of 2020 stood at N5.381 trillion, according to the latest report from the National Bureau of Statistics (NBS).

This was 33.77 percent higher than the N4.023 trillion recorded in the second quarter and 38.02 percent better than the same quarter of 2019. This is the highest imports since 2017. So far this year, Nigeria’s total value of imports stood at N13.909 trillion.

During the same quarter, export value accounted for N2.993 trillion of the total trade, representing a 34.85 percent increase when compared to the amount filed in Q2, 2020 and a decrease of 43.41 percent compared to the third quarter of 2019. Also, this is the lowest of any quarter since 2017.

“Due to lower exports and higher imports compared to 2019, the trade balance recorded a deficit of N2,388.5billion during the third quarter. This also represents the widest merchandise trade deficit since 2017. When compared to the deficit of N1,803.3 billion recorded in Q2, the Q3 deficit rose by 32.45%,” NBS stated.

In the third quarter, the total value of Nigeria’s merchandise trade stood at N8.374 trillion, representing an increase of 34.15 percent from the second quarter and a decline of 8.85 percent when compared to the corresponding quarter of 2019.

Despite the Federal Government’s efforts at stimulating local production, Nigeria continues to depend on imports for most of its consumptions. Crude oil accounted for 81.02 percent or N2.42 trillion of the nation’s total exports while non-crude oil exports and non-oil exports constituted 7.17 percent or N568.18 billion and N214.65 billion, respectively.

Nigeria’s largest exporting partners were India, Spain, Netherlands, South Africa and Turkey with 16.73 percent, 10.97 percent, 7.61 percent, 6.81 percent and 5.01 percent, respectively.

China remains Nigeria’s largest importing partner with 30.51 percent of the nation’s total import coming from the world’s second-largest economy. The United States came second with 8.96 percent. This was followed by the Netherlands (8.24 percent), India (6.58 percent) and Belgium (3.95 percent).

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.

Finance

Niger Insurance to Sell Property Worth N15bn in Recapitalisation Move

Published

on

WAPIC

Niger Insurance to Sell Property Worth N15bn in Recapitalisation Move

Niger Insurance Plc said it is working on a plan to sell off N15 billion worth of real estate and investment property to boost its cash flow and meet the liquidity requirements of the insurance industry.

Mr. Edwin Egbiti, the Managing Director of the company disclosed this during the company’s 2019 annual general meetings held virtually in Lagos recently.

He said, “Subsequent to the requisite approvals of the board on behalf of shareholders, a number of the company’s real estate and investment property valued at N15bn have been put on sale in order to improve liquidity/cash flows, ensure reserve adequacy and improve solvency margins.

“We are encouraged by the progress made so far, and confident that both capital restructuring and recapitalisation efforts will be successful in line with National Insurance Commission’s regulatory timelines.”

It added that Niger Insurance recognised that its people were the company’s most critical assets without whom its goals and plans would remain elusive.

Continue Reading

Finance

AMCON Takes Over Inducon Nigeria’s Assets Over N1.3 Billion Debt

Published

on

AMCON

AMCON Takes Over Inducon Nigeria’s Assets Over N1.3 Billion Debt

The Asset Management Corporation of Nigeria has taken over the assets of Dr. John Abebe, the Chief Promoter of Inducon Nigeria Limited over N1.3 billion debt.

According to a statement signed by the Head, Corporate Communications Department, AMCON, Jude Nwauzor, and titled ‘N1.3bn debt: AMCON takes over assets of Inducon Nigeria Limited’ the decision followed the order of Honourable Justice Aikawa of the Federal High Court, Lagos.

In compliance with the enforcement order, AMCON at the weekend took effective possession of the property situate at Plot12, Block 108, Lekki Peninsula Residential Scheme, Lagos, through its debt recovery agent – Ogunsola Shonibare L.P.

“The court also ordered that the bank accounts of the company and its directors, Dr. John Abebe, Mr Olawole Fatimilehin and Ademola Buraimoh, be frozen pending the final determination of the suit.

The asset management corporation said the case of Dr. John Abebe and Inducon Nigeria Limited started shortly after the loan was procured by AMCON in 2011 during the first phase of Eligible Bank Asset purchases from the defunct FinBank, Now FCMB.

Continue Reading

Finance

CBN Pays N14.35 Billion for 263,860 Meters to End Estimated Billings

Published

on

prepaid meter

CBN Pays N14.35 Billion for 263,860 Meters to End Estimated Billings

The Central Bank of Nigeria (CBN) said it has disbursed a total sum of N14.35 billion to the Distribution Companies of Nigeria (DisCOs) for the payment of 263,860 meters under the National Mass Metering Programme (NMMP).

In November 2020, the Federal Government announced that it would make funds available for 1 million meters in the first phase of President Buhari Mass Metering Initiative at no cost to consumers.

Between November 2020 and January 2021, the Federal Government through the CBN has disbursed N14.35 billion.

However, according to the apex bank DisCOs must pay back the amount disbursed based on the previously agreed amortisation schedule.

The facility disbursed is a loan that must be repaid by the DisCos on the basis of the previously agreed amortisation schedule. The repayment is to be deducted from payments made by consumers into the DisCos accounts with Deposit Money Banks (DMBs),” the CBN stated.

The maximum tenor of the facility is 10 years but not exceeding 2030, while the moratorium on the principal amount is for a period not exceeding 24 months from the date of loan disbursement.

A week ago, the Ibadan Electricity Distribution Company (IBEDC) announced it has commenced the distribution of 104,0000 free meters in Ibadan, Oyo State.

This, the IBEDC said was under the ongoing National Metering Scheme of president Muhammadu Buhari.

Continue Reading

Trending