The Nigerian Business Climate is Still Foggy – Week in Review

The business climate in Nigeria for 2016 is still hazy despite the ratification of the 2016 budget by President Muhammadu Buhari. Here is an ex-ray on the economy, and some deductive forecasts.

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FOREX UTILIZATION

The Central Bank of Nigeria (CBN) sold a total of $136m to 13 commercial banks, 3 merchant banks and the Bank of Industry (BoI) between March 3-6, 2016.

This is just as the country’s foreign exchange reserves plummeted further to $26.9b last Thursday.

Returns on forex utilization published by the financial institutions showed that First Bank of Nigeria Limited, with $16.8m got the highest allocation from the central bank. Other banks that followed suit are Stanbic IBTC allotted $14.7m and Standard Chartered Bank was allotted $14.3m.

CAPITAL MARKET RECAPITALIZATION

Capital Market Operators (CMOs) who missed the September 30, 2015 deadline for recapitalization are now intensifying efforts to meet the December 31, 2016 date given by the Securities Exchange Commission (SEC). The CMOS are wooing investors for fresh capital injection or considering merger options. However, investors are being discouraged by the continued bearish nature of the market.

SHAREHOLDERs APPROVE FIDELITY BANK DIVIDEND PAYOUT

Shareholders of Fidelity Bank Plc have approved the 16k per ordinary share dividend payable to its shareholders for the financial year that ended December 31, 2015.

The financial earnings grew to N146.9 billion from N136.1 billion recorded in 2014.

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NNPC PAID N1.118T TO FEDERATION ACCOUNT

The March edition of the monthly financial and operation report of the Nigerian National Petroleum Corporation (NNPC) has shown that the corporation has in the last one year paid N1.118T into the federation account as proceeds from sale of domestic crude oil from March 2015 to March 2016.

MTN LOSES 6.5M DATA SUBSCRIBERS, GLO GAINS

The 2016 first quarter telecoms industry report has shown that MTN lost 6.5 million internet subscribers between January and March this year while Globacom garnered 1,448 fresh data customers within the same period.

The expected change in the financial sector is still elusive less than a week into budget passing, but the forecast is still hopeful for a potential upward trend in the coming weeks.

(Sources: Punch and This Day)