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CBN increases forex allocation to banks, assures liquidity for Invisibles

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Emefiele rejects APC presidential Expression of Interest, Nomination forms purchased for him

….As CIBN boss seeks NDLEA, EFCC, collaboration on illicit finance flow***

The Central Bank of Nigeria (CBN) has concluded plans to increase the amount of foreign exchange allocated to banks to meet the requests of customers.

This particularly relates to requests of travelers seeking foreign exchange for travel allowances, payment of tuition and medical fees, among other invisibles.

It follows a warning issued by the CBN Governor, Mr Godwin Emefiele, at a meeting with the Managing Directors of Deposit Money Banks (DMBs).

Emefiele cautioned them to desist from denying customers, particularly travelers, the opportunity to purchase foreign exchange.

This is foreign exchange for the purposes of Personal Travel Allowance (PTA), Basic Travel Allowance (BTA), tuition fees,  and medical payments, as well as Small and Medium Enterprises (SMEs) transactions or for the repatriation of Foreign Direct Investment (FDI), proceeds.

Sources close to the meeting held at the weekend, over the challenge faced by customers in accessing forex from their banks, said the Governor warned that the CBN would take action against any bank that denied customers the opportunity to purchase foreign exchange for legitimate purposes.

The sources disclosed that the CBN management frowned at the seeming difficulty customers experienced in accessing foreign exchange through their respective banks.

This is forex particularly for invisibles such as PTA and requests bordering on tuition and healthcare needs.

According to the sources, CBN may release hotlines for aggrieved customers to report banks that fail to sell foreign exchange to them even after providing required documentation.

The Acting Director, Corporate Communications Department at the CBN, Osita Nwanisobi, on Sunday confirmed the discussions at the meeting of bank chiefs.

He said that the bank remained committed to ensuring liquidity in the foreign exchange market.

This is to meet genuine and legitimate demands of customers.

He said : “The CBN agreed to increase the amount allocated to banks for travelers, Small and Medium Enterprises among others.

“The banks also agreed to operate something akin to foreign exchange imprest account such that the coffers of banks would be replenished so long as they retire the initial amounts to the satisfaction of the CBN”.

Nwanisobi urged interested members of the public seeking to purchase foreign exchange for PTA, BTA, payment of tuition fees or medical fees to approach their respective banks for that purpose.

“We wish to assure members of the public that the CBN shall continue to monitor market developments and is committed to ensuring an efficient FX market for all legitimate users,” he said.

He advised customers to approach customer service representatives of their designated banks should they encounter challenges.

Nwanisobi urged them to forward their complaints to the Central Bank of Nigeria via the Bank’s toll-free line: 07002255226 or send an email to cpd@cbn.gov.ng if their requests are not met.

In another development,  the Chartered Institute of Bankers of Nigeria (CIBN) has called on the National Drug Law Enforcement Agency (NDLEA) and the Economic and Financial Crimes Commission (EFCC) to collaborate with it to check illicit finance flow in the country.

The CIBN made the call in a statement issued by it’s Head of Corporate Commission, Mr Nelson Olagundoye, on Sunday in Lagos.

The statement said also that the institute was proposing an annual joint conference that would focus on proffering solutions to the challenge, as part of the collaboration.

Also read: Drug abuse: Ex-EFCC boss wants partnership with NDLEA

According to the statement, the President/Chairman of Council, CIBN, Dr Bayo Olugbemi, made the call when he was received by the Executive Chairman/Chief Executive of NDLEA, retired Brig Gen. Mohammed Buba Marwa, in Abuja recently.

The CIBN President said that the purpose of the visit was to discuss how CIBN could deepen the relationship between the agency and the banking industry.

This is toward building a better Nigeria, a Nigeria that would be drug-free and one to be proud of.

Olugbemi said that the institute was ready to collaborate with the NDLEA Academy on relevant certification programmes as well as to provide technical expertise to enhance the existing competencies in the Academy.

He urged the agency to partner with the institute to educate Nigerian youths on the dangers of hard drugs to the human health.

Olugbemi further sought the support of the Agency for the proposed amendment of the CIBN Act of 2007.

This is to enhance the power of the disciplinary tribunal to discipline erring bankers, among others.

The CIBN President applauded the Agency for the effective and efficient administration in fighting smuggling, production, trafficking and use of illicit drugs.

Marwa, while welcoming the CIBN team, said that about 15 million Nigerian youth were into illicit drug consumption.

He said their indulgence contributed to the high level of criminality in the country, especially banditry and incessant kidnapping of school pupils.

He said that the Agency had been dealing drastically with a supply chain of illicit drugs.

According to him, over N90 billion worth of drugs has been confiscated by the Agency while going after the properties of the drug barons.

He assured the institute of the Agency’s readiness to collaborate with it on Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF).

The NDLEA chief also promised collaboration on relevant banking operation fundamentals, to fight against criminality in the country.

Marwa also lauded the advocacy role of CIBN in the Financial Services Industry, adding that the agency would support the Institute on the CIBN Act review when presented to the National Assembly.

He promised to continually support the Institute’s leadership and be more active and committed to the Institute’s activities, programmes and events.

 

Economy

NGX Market Capitalisation Gains N836bn

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Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

…Tantalizers, NASCON lead the losers’ chart 

The Nigerian Exchange Ltd.(NGX) market capitalisation, which opened at N57.697 trillion on Tuesday, gained N836 billion or 1.45 percent closing at N58.533 trillion.

Also, the All-Share Index rose by 1.45 percent or 1,480 points to close at 103,524.44, as against 102,044.84 recorded on Monday.

As a result, the Year-To-Date (YTD) return rose to 38.45 percent.

Interest in Telco heavyweight and Tier-one banks such as MTN Nigeria, UBA, Access Corporation, Guaranty Trust Holding Company(GTCO), and sustained interest in Transcorp Power(TransPower) kept the market in the green.

Market breadth closed positive with 35 gainers and 14 losers.

On the gainer’s chart, UBA led in percentage terms of 10 to close at N25.30, followed by MTN by 9.98 percent to close at N243.50 per share.

Julius Berger also gained 9.71 percent to close at N61, While Access Corporation rose by 9.51 percent to close at N22.45 per share.

Veritas Kapital Assurance went up by 9.38 percent to close at 70k per share.

Conversely, Tantalizers led the loser’s chart by 7.89 percent to close at 35k, and National Salt Company of Nigeria(NASCON) trailed by 6.77 percent to close at N53.70.

Morison Industries Plc shed 6.62 percent to close at N1.41, C&I Leasing lost 6.45 percent to close at N3.48, while Cutix Plc dropped 6.30 percent to close at N2.53 per share.

However, analysis of the market activities showed trade turnover settled lower, relative to the previous session.

The value of transactions was also down by 16.76 percent.

A total of 565.79 million shares valued at N14.23 billion were exchanged in 11,519 deals,  compared to 436.90 million shares valued at N17.09 billion exchanged in 11,344 deals traded on Monday.

On the activity chart, Transcorp led in volume with 170.72 million shares traded at a value of N3.13 billion, Access Corporation followed by 48.57 million shares valued at N1.06 billion.

GTCO sold 39.04 million shares worth N165.80 million, Jaiz Bank traded 36.78 million shares valued at N72.51 million and UBA transacted 31.96 million shares valued at N796.24 million

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Economy

SIFAX Group Appoints Basil Agboarumi As Executive Director

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SIFAX Group, one of the leading business conglomerates in Nigeria with investment in Maritime, Aviation, Oil & Gas, Haulage & Logistics, Financial Services, and Hospitality, has appointed Basil Agboarumi as its new Executive Director of corporate and Intergovernmental Affairs.

Agboarumi recently completed his term as the Managing Director/CEO of the Skyway Aviation Handling Company Plc. (SAHCO Plc.), one of the subsidiaries of SIFAX Group.

Agboarumi holds a National Diploma (OND) in Mass Communication from the Federal Polytechnic, Auchi and a Higher National Diploma (HND) in Mass Communication from the Federal Polytechnic, Oko, a Master in Communications (MSc) from the Lagos State University and a Certificate in Creative Design & Digital Communications from the School of Media & Communications of the Pan-Atlantic University, Lagos. He also holds a Management Certificate in Civil Aviation from Concordia University, Montreal, Canada.

Basil Agboarumi, Executive Director, Corporate and Intergovernmental Affairs

After the privatization and subsequent takeover of SAHCOL by SIFAX Group in 2009, Agboarumi was appointed the Head of Corporate Communications to spearhead the re-branding of the new company. He was subsequently appointed the company’s Managing Director in 2018. Under his leadership, SAHCO Plc was listed on the Nigeria Stock Exchange while many airlines, both local and foreign, signed business deals with the company due to its excellent and cutting-edge services which include passenger handling, ramp handling, and cargo handling.

Agboarumi has over 25 years of professional in public relations, reputation management, brand development, media relations, business development, and government relations.

Speaking on the new appointment, Dr. Taiwo Afolabi, Chairman, SIFAX Group, said Agboarumi brings vast experience and records of achievements to his new role, adding that these qualities will help him succeed in the new role.

He said: “He demonstrated the capacity and ability to navigate different terrains as a leader during his time as the Managing Director of SAHCO. The COVID-19 pandemic hit shortly after he took over the reins at SAHCO, but he was able to steer the ship of the company to profitability despite the uncertainties that characterised the global aviation business at the time. I am convinced the Group will benefit tremendously from his wealth of experience as he assumes this new role.”

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Economy

NGX All-Share Index Crosses 100,000 Mark

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Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

…Guinness Nigeria and FTN Cocoa Processors lead the losers’ table

The All-Share Index, one of the performance indices of the Nigerian Exchange Ltd.(NGX), on Thursday, crossed a 100,000 mark for the second time in the year.

Having crossed the mark on Jan. 24, and later dropped, the All-Share Index specifically added 0.75 percent or 744 points to settle at 100,335.3, compared to 99,591.64 posted on Wednesday.

Consequently, investors gained N420 billion or 0.75 percent, as the market capitalisation which opened at N56.310 trillion, closed at N56.730 trillion.

Also, the Year-To-Date (YTD)return rose to 33.19 percent.

Improved buy interest in the shares of Dangote Sugar, MTN Nigeria, Transcorp Power, Oando Plc, and Cornerstone, alongside other top gainers drove the equity market to a positive terrain.

Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 9.11 percent.

However, market breadth closed negative with 33 losers and 25 gainers.

On the gainers table, Dangote Sugar and MTN led in percentage terms of 10 percent each to close at N50.60 and N201.30 per share, respectively.

Transcorp Power followed closely by 9.99 percent to close at N351.30, while Juli Plc added 9.96 percent to close at N4.97 per share.

National Salt Company of Nigeria (NSCN) rose by 9.92 percent to close at N47.65 per share.

On the other hand, Guinness Nigeria and FTN Cocoa Processors led the losers’ table by 10 percent each to close at N45.90 and N1.53 per share, respectively.

Transcorp also lost 9.95 percent to close at N17.10, Ikeja Hotel shed 9.93 percent to close at N6.08, while Redstarex declined by 9.87 percent to close at N3.38 per share.

Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

A total of 554.72 million shares valued at N17.73 billion were exchanged in 9,708 deals, compared to 416.48 million shares valued at N19.51 billion exchanged in 9,338 deals.

On the activity table, Transnational Corporation (Transcorp) led both in volume and value with 301.36 million shares traded in value of  N5.65 billion.

Sterling Nigeria sold 33.32 million shares worth N150.78 million, while FBN Holdings traded 23.21 million shares valued at N773.91 million.

Also, United Bank of Africa (UBA) transacted 18.38 million shares worth N400.29 million and Zenith Bank sold 17.08 million shares valued at N583.93 million.

Reacting, a stockbroker with Premium Capital, Mr Victor Ibrahim, said that the improved performance of the equity market was due to renewed investors’ expectations from the current government’s policies.

Ibrahim stated in Lagos that investors were keying into the future benefits of the economy by boosting their investment in the equity market.

He said, “The stock market is a leading indicator of the Nigerian economy and as such, with government policies such as the free-flow economy, investors confidence in our market has been boosted.

“The artificial scarcity of dollars in order to underprice or devalue the Naira is also another indicator.

“This is because the price of stocks in the Nigerian equity market is cheaper for foreign investors and those local investors who have dollars in reserve.

“While the Nigerian economy may presently appear tough, investors are keying into the future opportunities in the current government’s policies with the belief in the capacity of President Bola Tinubu.”

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