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DMBs Must Support FG’s Job Creation Efforts -CBN

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  • DMBs Must Support FG’s Job Creation Efforts -CBN

The Central Bank of Nigeria (CBN) on Tuesday said the Deposit Money Banks (DMBs) must support the Federal Government in asset creation, the CBN said at the annual banking and finance conference in Abuja.

Mr. Godwin Emefiele, the governor, CBN, who was represented by Deputy Governor, Economic Policy Directorate of CBN, Joseph Nnana, said, DMBs must scale up their operational landscape through capacity building and modern digital skills that are capable of creating jobs for Nigerians.

“We must support the government in creating jobs for the teaming population. That’s why we employ banks to ensure that idle assets, idle liquidity are transferred to asset creation,” Joseph Nnana stated.

“Today, the central bank is calling on the banking system to be alive to its responsibility. We cannot proceed with an economy without banks. Neither can we conceive banks without an economy. The days of arm chair banking, playing in the treasury bills space are right behind us.”

Nnana highlighted some of the apex bank’s recent initiatives, the 60 percent loan to deposit ratio, to emphasise that the central bank is very serious on growth and new job creation.

“As Nigerians, the future of our country is in our hands. And that future must be defined by the banking industry. Without money, we go nowhere; in any economy in the world, with money, we can go places – provided the managers of this money are anxious to do well for the economy. And I know we shall do well for this country,” Nnana added.

Accordingly, Vice President Yemi Osinbajo, who also was a special guest of honour at the event, said the financial services industry must challenge itself to partner with the public sector on job creation and growth stimulation while simultaneously redefining itself to benefit from the nation’s economy and its people, especially with regards to the recently signed African Continental Free Trade Area.

“We must jointly think through how to really lend to the SMEs and the entire real sector; how to deepen capital market and financial mediation; how to partner in developing our mortgage market, what we need to do to deepen consumer credit; lending to agriculture,” he said.

Uche Olowu, president of the Chartered Institute of Bankers of Nigeria, said financial institutions have to reimagine banking in the contest of daily lives, our routines, our needs, our desire and the impact on our future to stay atop of things.

“Consequently, we must embed, finance infrastructure into the nation’s payment system as we put the customer in control and the heart of our business model through democratizing access to data. We must transform financial services by creating value. The scale of change requires a broader and strategic system of structure. Incumbent banks therefore, should step up their strategic responses,” he stated.

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

Investors Oversubscribed for FGN Bonds by N205.87 Billion in October

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FG October Bonds Oversubscribed by N205.87 Billion

The Debt Management Office (DMO) has said investors oversubscribed for the Federal Government’s October bonds by N205.87 billion.

The DMO stated this after concluding the monthly FGN bonds auction on Wednesday.

Two instruments of 12.5 per cent FGN March 2035 re-opening 15-year bond and 9.8 per cent FGN July 2045 re-opening 25-year bond were auctioned.

The two bonds of N15bn each with a total auction figure of N30bn received a subscription of N235.87bn.

The 15-year tenor and 25-year tenor bonds received 99 and 67 bids but recorded 21 and 26 successful bids respectively.

The amounts allotted for each of the bids were N20bn and N25bn respectively.

According to the DMO, successful bids for the 15-year tenor bond and 25-year tenor bonds were allotted at the marginal rates of 4.97 per cent and six per cent respectively.

However, it added, the original coupon rates of 12.5 per cent for the 12.5 per cent FGN March 2035 bond and the 9.8 per cent for the 9.8 per cent FGN July 2045 bonds would be maintained.

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Lafarge Africa Sustains Growth in Third Quarter, Reports N53.3bn Revenue

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Lafarge Africa Grows Revenue by 31.4 Percent to N53.3bn Revenue in Q3 2020

Lafarge Africa Plc, a cement manufacturer headquartered in Lagos, sustained its strong growth in the third quarter (Q3) ended September 30, 2020.

In the company’s financial results released on the Nigerian Stock Exchange on Friday, the cement manufacturer’s revenue rose by 31.4 percent from N45.172 billion posted in the third quarter of 2019 to N59.337 billion in the third quarter of 2020.

Similarly, operating profit grew by 7.2 percent from N7.746 billion in the corresponding quarter to N8.302 billion in the quarter under review. This strong performance continues across the board as net income expanded by 2.8 percent to N4.867 billion, up from N4.734 billion posted in the third quarter of 2019.

Lafarge earnings per share rose by 2.8 percent to 30 kobo in the third quarter, again up from the 29 kobo posted in the same period of 2019.

On the outlook for the company going forward, the company said:

 Market demand is expected to remain strong in Q4.
 Naira devaluation and inflation remain a concern in Q4.
 The implementation of our “HEALTH, COST & CASH” initiatives would continue to deliver
improvement in our performance.
 We will maintain a healthy balance sheet.

Speaking on the company’s performance, Khaled El Dokani, CEO, Lafarge Africa Plc, said “Our robust results for the first 9 months reflect the strong recovery of the demand in Q3 and the successful implementation of our “HEALTH, COST & CASH” initiatives. Both have delivered considerable improvement in recurring EBIT, net income and free cash flow, despite the impact of the COVID-19 pandemic and Naira devaluation, particularly in Q3.

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Despite COVID-19 Pension Assets Hit N11.4 Trillion

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Total Pension Assets Expand to N11.35 Trillion

The National Pension Commission has revealed that the total pension assets rose to N11.35 trillion as of the end of August 2020 despite the COVID-19 pandemic that disrupted businesses and economic productivity.

According to the latest figures from the National Pension Commission,  the commission assets expanded from N11.08 trillion in June 2020 to N11.3 trillion in July.

The report noted that 66.27 percent or N7.51 trillion of the funds had been invested in the Federal Government’s securities.

While some of the funds were also invested in domestic and foreign ordinary shares, corporate debt securities, local money market securities and mutual funds.

In the commission’s second quarter (Q2 2020) report, it said that following “the issuance of demand notices to some defaulting employers whose outstanding pension contribution liabilities had been established by recovery agents, 16 of the affected employers remitted N261.33 million during the period.

“PenCom said this represents a principal contribution of N152.79 million and penalty of N108.54 million during Q2 2020.”

In the commission’s Q2 2020 report, it said “the pension fund administrators (PFAs) 2,839 contributors under the micro pension plan, remitted a total of N7.4 million to the RSAs as pension contributions.

Also in the same quarter, it said the PFAs recaptured 56,990 RSA holders and uploaded their data to the enhanced contributory registration system (ECRS).

PenCom further said the growth in the industry’s membership was driven by the RSA scheme, which had an increase of 41,147 contributors, representing 0.46 percent.

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