Banking and Finance

IMF head: Dire economic forecasts may be too optimistic

How do you co-ordinate economic policy across the globe, when an invisible enemy that behaves in unknown ways systematically erodes the very way economies function?

That is the tricky challenge facing the relatively new managing director of the International Monetary Fund, Kristalina Georgieva, who sat down with me to discuss this in her first British broadcast interview.

COVID-19: Lagos government to review ₦1.168tr 2020 budget

The Lagos State Government says it will review the 2020 N1.168 trillion ($2,612,787,000.00) budget, following current economic challenges as a result of the COVID-19 pandemic.

Governor Babajide Sanwo-Olu had on June 4, 2019, signed the 2019 Appropriation Bill of N852.317 billion into law.

The Commissioner for Economic Planning and Budget, Mr. Sam Egube and Commissioner for Information and Strategy, Mr. Gbenga Omotoso, said this during an inter-ministerial press briefing, held in Alausa, Ikeja.

Macroeconomic Note: Weaker External Position Points to Further FX Adjustment

Nigeria’s current account (CA) position sustained its deficit run for the sixth consecutive quarter in Q4-19 (+157% q/q). We highlight that the absolute CA deficit of USD6.97 billion translates to 5.3% of GDP – representing the highest point in history. Analysing the breakdown, we note that the negative outturn was largely occasioned by trade deficit (USD1.5 billion) – the first trade deficit since Q3-16 –, following a 17.0% q/q expansion in imports, which ran ahead of exports (-11.0% q/q).

S&P Global Downgrades Nigeria’s Long-term Issuers Rating to ‘B-‘

In recent times, we have highlighted the deterioration of Nigeria’s external balance. The recent release of the full year external statistics gives us a full picture of the performance in 2019. The Q4:2019 balance of payments statistics showed a deeper contraction in the current account balance to -$7.0bn or -5.4% of GDP, the largest quarterly current account deficit on record. There was a decline across all the components, save current transfers which remained resilient, up 10.7% Y-o-Y to $7.0bn, driven by higher remittances from abroad.

NAICOM rolls our regulatory forbearance for business sustainability

The National Insurance Commission (NAICOM) has rolled out some regulatory forbearance as part of business continuity measures to ensure availability of insurance services and protections of insurance policyholders during the COVID-19 Movement Restriction.

The commission in a circular to insurance operators and institutions, signed by the Director Policy and Regulation, Pius Agboola, on behalf of the Ag. Commissioner for Insurance, Thomas Sunday released the regulatory forbearance as follows:

FCMB Group Records ₦188b Revenue, Grows Profit to ₦20.1b

FCMB Group Plc has announced its financial results for the year ended December 31, 2019. The audited results showed that the Group’s gross revenue increased to N188 billion compared to N177.2billion in 2018. The strong performance also manifested in profit before tax, which rose by 9% to N20.1 billion.

Following this, the financial institution has declared a dividend of 14 kobo per share to shareholders.

₦100b health sector intervention scheme operational till 2030 –CBN

CENTRAL Bank of Nigeria (CBN) said that the N100 billion credit support to the health sector created as part of measures to address the impact of the Coronavirus, COVID-19, pandemic on the Nigerian economy, will operate till 2030.

The apex bank disclosed this in the guidelines for the scheme released last week, stating that: “The exit date of this intervention is December 31, 2030.”

External reserves to fall below $30b

The travel restrictions and other measures being implemented around the world in order to curb the Coronavirus pandemic has led to the shutdown of the global economy.

The Sub-Saharan region in Africa is not immune from the economic shock caused by the coronavirus outbreak. The oil exporters from the sub-region have been seriously hit hard by the crash in crude oil prices which is compounded by drop in demand due to a series of lockdowns and restrictions being carried out globally.

COVID-19: CBN implements necessary measures for steady operations

The Central Bank of Nigeria (CBN) says it has triggered business continuity plans to ensure the bank’s operations remain uninterrupted despite COVID-19 outbreak in the country.

The CBN Director of Corporate Communications Department, Isaac Okorafor, said this in a statement in Abuja.

Okorafor disclosed that the apex bank had directed Deposit Money Banks (DMBs) and other financial institutions to do the same.

BOI raises €1b from international capital market

As part of efforts to revitalise Nigeria’s industrial sector, the Bank of Industry (BOI) says it has raised €1 billion (approximately $1.11billion) from the international capital market.

The Managing Director of BOI, Mr Kayode Pitan, in a statement on Friday in Lagos, said that the fund was in line with the focus of President Muhammadu Buhari’s administration.

Pitan said that the fund would leverage Nigeria Industrial Revolution Plan and the Economic Recovery and Growth Plan to achieve its target.