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Category Archives: Business

FIRS Eyes N4.5trillion Revenue in 2016


The Federal Inland Revenue Service, FIRS, is aiming at a revenue profile of N4.5trillion in 2016 to raise the country’s cash reserve.

The Acting Executive Chairman Babatunde William Fowler, who disclosed this to senators on Tuesday, November 24, spoke during his screening for confirmation on the substantive tax matter. Fowler noted that the revenue from the country’s Value Added Tax (VAT) would be increased from N500m to N2.5trillion in 2016.

He also said the proposed N8 trillion budget for 2016 is realisable, saying: “The Vice President was not aware of this projection before disclosing the proposed N8tr budget but the budget is possible.”

He added: “If oil can generate N1trillion, Customs and FIRS can generate N4.5tr, so the budget of N8tr is quite double.

“Our projection of N4.5trillion does not include an increase in VAT. This is because we are of the view that tax should be fair.”

World Bank Launches $16billion Africa Climate Business Plan

world bank

The World Bank Group, on Tuesday, November 24, unveiled a new plan that entails $16 bil­lion funding to help African nations adapt to climate change and build up the continent’s resilience to climate shocks.

The Plan, which is titled ‘Ac­celerating Climate-Resilient and Low-Carbon Development’, will be presented at COP21, the glob­al climate talks in Paris, next Monday.

It reels out measures to boost the resilience of the continent’s assets – its people, land, wa­ter, and cities – as well as other moves including boosting re­newable energy and strengthen­ing early warning systems.

The World Bank Group President, Jim Yong Kim, who commented on the funding intervention, noted that Sub-Saharan Africa remained highly vulnerable to climate shocks, which the Bank’s research shows could have far-ranging impact on ev­erything from child stunting and malaria to food price increases and droughts.

“This plan identifies concrete steps that African governments can take to ensure that their countries will not lose hard-won gains in economic growth and poverty reduction, and they can offer some protection from cli­mate change.”, Kim said.

4 Reasons Why The CBN Cut CRR & MPR


The Central Bank Monetary Policy Committee cut MPR from 13% to 11% in a move that surprised analysts. They also cut the cash reserve requirement for banks from 25% to 20%. The committee voted 8 to 10 to reduce the MPR and 7 to 10 to reduce CRR. The CBN is hoping that these twin cuts will stimulate the economy and help the country avoid a further slide in GDP.

According to the communique released on the website of the CBN has cited the “weakening fundamentals of the economy, particularly the low output growth, rising unemployment and the uncertainty of the global economic environment” as its reason for the cuts.

Weakening Fundamentals

The National Bureau of Statistics in its latest GDP report revealed that Nigeria’s GDP had grown by just 2.8% in the third quarter of 2015, compared with 2.35% in the second quarter. However, economic growth in Q3 was lower than the 3.96 and 6.23 % in the first quarter of 2015 and the corresponding period of 2014, respectively. The low GDP figures for Nigeria is symptomatic of the harsh economic realities facing the public and private sectors of the economy. With oil prices remaining bearish Government revenue has dwindled massively causing a huge shock in the economy. Government is perhaps the biggest spender in the economy and relies heavily on oil sales to fund its spending. With funding essentially drying up the Private sector has been reeling with huge debts, meager cash flows and dwindling sales.

High Unemployment

The National Bureau of Statistics also reported that unemployment rate in Nigeria had risen to about 9.9% per annum with 7.5 million people currently out of jobs. With the GDP remaining stubbornly low,it is unlikely that private sector will expect to create jobs at a pace that should help stimulate the economy. Further increase in unemployment means consumers will have fewer disposable income which in turns affects businesses who rely on sale of products and service to individuals to survive. The CBN believes channeling funds to towards Agriculture, infrastructural development, solid minerals and industry will help drastically reduce unemployment rates. Out of the 41, 672 jobs created last quarter 4,409 jobs were created from the Agric sector.

The World Economy

The global economy is also struggling with slowing growth and threat of a recession. Japan has already entered yet another recession and China is struggling. The US FED is also expected to raise rates in December, a move many believe will suck out more money from emerging markets including Nigeria. The world is also littered with conflicts, war and terrorism that threatens economic peace and stability. Commodity prices including Oil are also likely to remain bearish in the current to near indicating that we may need to start looking inwards if we are to rescue the economy.

Boost Government Lending

The CBN MPR did not however mention that the Federal Government is in dire need of not just cash but at a cheaper rate.  Government bond yields have dropped significantly in the last few weeks and may continue to remain low as long as the CBN sustains in quasi quantitative easing. By cutting MPR and CRR simultaneously the CBN is also providing the Government an opportunity to borrow at cheaper and more affordable rates. Whilst the CBN did confirm the MPR was aimed at boosting lending to the real sector, it also mentioned that the reduction in CRR will only be allowed when they are sure that only banks who decided to lend to sectors that create jobs will get the cut.

Dangote Cement’s N300m Promo Targets 2 Millionaires Daily

dangote cement

President of Block Makers Association of Nigeria, Chief Rashidi Adebowale has assured the management of Dangote Cement that his association is solidly behind the company in its efforts at enriching 3,783 of its customers and make two Nigerians millionaires daily.

Speaking last weekend in Lagos, Adebowale said Dangote Cement’s management has proved to be truly Nigerian with the introduction of the best grade of cement and also the decision to enhance the standard of living of its distributors’ and customers.

According to him; “We are very grateful as an association to the management of Dangote Cement for this mega promo. I am very optimistic our members will benefit from this promo. Giving out N300 million at this time of the year is really gratifying. We are happy. We have also instructed our members across the country to aggressively patronise Dangote Cement so as to benefit from the Promo.”

In the same vein, the Chairman of the Lagos Branch of the Association, Alhaji Okunola Abegunde also praised the Management of Dangote Cement with an assurance that with active participation of its members, the promo will be a huge success.

The promo, which will last for three months will produce two millionaires per day as two prizes of one million naira each will be won daily for 90 days by 180 lucky winners for the duration of the promo while a whopping N30 million will be won by a lucky winner every month.

“39.5 Million Nigerians Are Excluded From Financial Services” – CBN


The Central Bank of Nigeria, CBN,  has maintained that about 39.5 million Nigerians were excluded from the financial services system including insurance services, pension and banking services.

The apex bank said greater numbers of persons were excluded from insurance and pension services.

A representative of CBN at the micro insurance fair recently held in Lagos, Olayinka Peters from the Financial Inclusion Secretariat of the apex bank stated this while addressing exhibitors and visitors at the fair.

Peters attributed Nigerian’s apathy to insurance in particular to lack of trust and financial education, adding that the above two problems must be addressed by the insurers in collaboration with the apex bank.

He said to help the apex bank wade into the problem, insurance industry must provide quality data on insurance activities.

According to him, CBN annually publishes data on banking, insurance and pension but that there has not been any quality data raised by insurance industry.

He said data on insurance often provided by the National Insurance Commission (NAICOM), is of poor quality pointing out that it lacked information on number of women , number of men and children that have insurance cover.

Furthermore, he said the available insurance data provided by the commission lacked sector by sector insurance activities such as agric sector insurance.

He called on the commission and umbrella body of insurance underwriters, the Nigeria Insurers Association to avail the apex bank with quality data that will enable it give adequate attention to insurance and come up with strategy on how to improve on the performance of the sector which after its century of operation in Nigeria contributes below one percent to the National GDP.

CBN Gives Three Commercial Banks June 2016 Deadline to Recapitalize


The Central Bank of Nigeria, CBN, has given three commercial banks until June 2016 to recapitalize after they failed to meet the minimum Capital Adequacy Ratio (CAR) of 10 per cent.

The Apex bank explained over weekend, that 14 banks have licenses to operate as regional and national lenders with respective capital bases of N10 billion ($50 million) and N25 billion, three of which were asked to raise fresh funds.

The Liquidity Stress Test was conducted by the CBN, which indicated that the capital position of ‘three small banks’ has fallen below regulatory capital requirement.

The test, contained on the CBN’s Financial Stability Report showed the Capital Adequacy Ratios (CARs) of the affected banks were below five per cent regulatory threshold. The three banks are not among the domestic systemically important banks (D-SIBs), it said.

The report, which measured the lenders’ positions as at June this year, showed that the number of banks with CAR less than five per cent, also increased from zero to three from December 31, 2014 to June 30, 2015. The CAR is a ratio of a bank’s assets to its risks

According to CBN’s Director, Financial Policy and Regulation Department, Kelvin Amugo, the liquidity stress test was conducted, using the Implied Cash Flow Analysis (ICFA) and the Maturity Mismatch/Rollover Risk approaches to assess the resilience of the banking industry to liquidity and funding shocks.

CBN Saves $300million From Bureau-de-Change Demand For BVN

Central Bank of Nigeria’s mandate that all transactions by any Bureau De Change (BDC) in the country must be accompanied by the Bank Verification Number, BVN of the customer, has saved Nigeria $300 million.

According to the governor of the CBN, Godwin Emefiele, the requirement of BVN for transactions has cut down the number of BDCs that request for forex transaction thereby cutting down foreign exchange savings by $100 million every week.

The CBN had in October, instructed that BDCs request and verify the BVN of their customers before any transaction is consummated. The directive which took off November 1, 2015 also stated that details of the transactions be included in the BDCs report to the apex bank.

With a weekly savings of $100 million, the CBN policy has seen a foreign exchange savings of $300 million for the past three weeks that the policy had been in place. Speaking at the 49th Annual Bankers Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos at the weekend, Emefiele said the BVN policy had chased out fraudulent BDCs from the system.

“We have seen the number of BDC operators who purchase forex from the central bank every week drop from an average of about 2,886 to just below 1,200 BDCs, thereby giving the CBN forex savings of almost $100 million per week. This policy seems to have chased away unscrupulous BDC operators and allow only genuine operators to remain in the market” he said.

Noting that while “it may be too soon to completely adjudicate on the merits of our policies, preliminary signs indicates that we are headed to the right direction as a people”, Emefiele said through its various policies, the CBN has “managed to attain stability in the exchange rate at about N197/$1 since February 2015, although some are not happy with us for that action. Most speculators and rent-seekers have been eliminated from the forex market.

“Domestic production of excluded items such as tomato paste, rice, fish, aluminum items, and others are picking up gradually. Despite the sharp drop in inflows, our forex reserves are still at about $30 billion which is enough to cover about six months of Nigeria’s imports as against the traditional benchmark of three months.


akinwunmi ambode

The Lagos State Governor, Mr. Akinwunmi Ambode, has appealed to Chief Executives Officers of private companies operating in the State to partner with the State Government to effectively tackle the menace of environmental degradation.

Ambode, gave the advice at the Muson Centre during the Greening Stakeholders’ Forum organized by the Lagos State Parks and Garden Agency (LASPARK) with the theme: ‘Sustaining Our Green Lagos’’.

Represented at the event by the Secretary to the State Government, Mr. Tunji Bello , the Governor noted that private companies were in a vantage position to complement government efforts toward a sustainable greening programme, adding that environmental regeneration and sustainability have been an integral part of the programmes of the State Government since 1999, with tremendous achievements recorded in the transformation of the state’s environmental landscape.

According to him, “the responsibility to restore the glory and beauty of our environment is a collective one. The government cannot do it alone. We must all unite to salvage the environment; it is in our own best interests. I want to see more corporate bodies take environmental projects as part of their Corporate Social Responsibility programmes”.

He reaffirmed that in spite of the high cost of the greenery programme, his administration was more committed than before to sustain it and take it even further because of its immense benefits to the society.

Apart from its proven capacity to generate employment opportunities, the programme has enormous potential to improve the well-being of the citizenry and ensure security of lives and properties, the Governor said.

He urged the private sector to adequately support the activities of LASPARK through the adoption and maintenance of the parks and gardens or even the creation of new ones.

Governor Ambode disclosed that there is a proposal for the construction of a Metropolitan Park that would be sited at Ayeteju in Ibeju Lekki ona 5 hectares of land, adding that the proposed recreational park will serve the people of Lekki, Ajah, Ibeju, Epe and its environs.

The Park when completed would be the biggest publicly owned in the whole of sub-Saharan Africa, and would feature a mini zoo, playing area for children, fitness centre, multipurpose game court, and many other features, he stated.

Earlier in his welcome address, the Commissioner for the Environment, Mr. Samuel Babatunde Adejare, said that in most developed countries, private sector support greening programme and renewable energy in the face of various environmental challenges and that Nigeria should not be an exception.

He stated that of the 300 parks and gardens in the State only 73, representing 23 per cent are being maintained by private companies and called for more partnership in this regard.

Adejare acknowledged and commended those companies that are supporting government efforts towards achieving a cleaner, safer and healthier environment, while also appealing for more funding for a sustainable greening programme to the benefit of all.

Dangote Cement Splash N300m on Customers in the “Dangote Mega Million Dash Promo”

aliko dangote

In a bid to compensate and enrich its teeming customers across the country, Dangote Cement from Monday November 16, 2015 commenced its biggest promo that will benefit 3, 783 customers. The Dangote Mega Million Dash (#DMMD) promo, which will be activated across the country will run for three months, with total benefits of N300 million to be shared among 3,783 customers.

Two prizes of one million naira each will be won daily for 90 days by 180 lucky winners for the duration of the promo while a whopping N30 million will be won by a lucky winner every month.

Explaining details of the promo, Dangote Group’s Chief Marketing Officer, Mr. Oare Ojeikere said: “To be part of the promo, all it requires is for the customer to buy a bag of cement and cut out the token at top right of bag. Five tokens will make one entry in the draw. Each entry of 5 tokens must be attached to a piece of paper with the participant’s name, phone number and address, placed in a sealed envelope and dropped off at a designated Drop Centre.”

He further revealed that 400 Dangote locations and all Access Bank branches nationwide, will function as Drop Centres for the entries. He assured the customers that the management of Dangote Cement will continue to look for new ways of enhancing their value as the level of acceptability of its products remains unprecedented in the history of Cement business in Nigeria.

Dangote Cement is Africa’s leading cement producer with three plants in Nigeria and recently opened factories in Ethiopia, Zambia, South Africa, Senegal and Cameroon.  It is a fully integrated quarry-to-customer producer with production capacity of 29.25Mta in Nigeria. Its Obajana plant in Kogi state, Nigeria, is the largest in Africa with 13.25Mta of capacity across four lines. The Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta. The Gboko plant in Benue state has 4Mta.

It would be recalled that the company for the nine months ended September 30, 2015 recorded a turnover of N365.5 billion, a 17.8 per cent increase over its corresponding year’s figure. The company, in the same period exported 3.7 million metric tonnes of cement to neighboring countries. The export underscores the fact that Nigeria is now self-sufficient in cement production.

The Chief Executive of the company, Onne Van der Weijde while presenting the result said: “I am pleased to report that sales from outside Nigeria have contributed nearly 29 per cent of volumes so far this year and 39 per cent in the third quarter, which demonstrates that we are diversifying successfully and quickly gaining market shares in new countries.”

While revealing that the company has just acquired 2,000 new trucks to help improve its logistics capabilities and enable it enhance its export of cement to neighbouring countries, he said: “Our key target will be Ghana, where we already have an import terminal that is at present supplied from outside the ECOWAS region.”

The nine months unaudited results released on the floor of the Nigerian Stock Exchange (NSE) showed that the cement giants’ earnings per share rose by 18.6 percent to N9.80.

Profit before tax at N166.9 billion for the nine months ended 30th September 2015 represents an increase of 8.4 percent compared to N154 billion in the 2014 corresponding period.

A breakdown of the results indicated that the cement group posted an operating profit of N173.5 billion, 6.8 percent higher than N162.5 billion generated in 2014. Nigerian operations accounted for N162.7 billion, West & Central Africa N2.9 billion, while South & East Africa did N7.4 billion.

NIPR Honours Transcorp Hilton PRM

Shola Adeyemo being honoured by NIPR
The Public Relations Manager of Transcorp Hilton Abuja, Mr. Shola Adeyemo has been honoured with an Outstanding Performance Award by the Nigerian Institute of Public Relations, Capital Chapter.  The award came in recognition of his service and contributions to the development of public relations practice in Nigeria and the hospitality industry in particular. The award was presented to him at the 26th Annual General Meeting/Conference of NIPR Capital Chapter which was held in October.
In a citation for the award, the NIPR stated that Mr. Adeyemo was being recognised for his outstanding personal attributed which he has harnessed over the years to lead a robust Public Relations Department in Transcorp Hilton Abuja., in addition to his consistent display of passion for the Public relations profession. The Institute also highlighted his exemplary leadership skills, and role as a seasoned administrator and an accomplished public relations practitioner as deserving of recognition.
Presenting the award to him at a well-attended gala dinner to Mr. Shola Adeyemo, the National Vice President of NIPR thanked him for his high level of professionalism and continuous commitment to the growth of corporate communications in Nigeria. Receiving the award, Mr. Shola Adeyemo, thanked the NIPR for the recognition and honour and pledged his commitment to promoting excellence in corporate communications in Nigeria.

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