What You Need to Know About the Nigerian Business Sector This Week

forex

Happenings around the financial market have not yet brought respite to many Nigerians. The market is still fluctuating; there have been a few gains with some brands taking on innovative approaches to stay ahead of the competition. Herein are highlights from this week:

Demand of school fee payments shrinks on the Forex Exchange Market, while other visibles dominate

Trading on the recently introduced Nigeria Interbank Foreign Exchange (NIFEX) has revealed a huge volume of activities by both commercial and merchant banks with competition among the financial institutions heightened as they seek to satisfy their clients.

The return on forex utilization and source of funds (purchases) for the week ending June 24 2016, showed that forex demand for the payment of school fees and other invisibles such as personal travel allowance (PTA) and business travel allowance (BTA) that used to be dominant activities, have all thinned out while dollars sales to customers for the importation of industrial materials and other visibles dominated activities.

Value of trading on NSE rises by 49%to N78bn in June

The value of equities trading rose by 49 percent in June as investors staked N77.923 billion on 7.712 billion shares in 100,895 deals, up from N51.957 billion invested in 7.855 billion shares in 88,004 deals in May.

AFC and others arrange $425 facility for oil firm

The Africa Finance Corporation (AFC) has said it is acting as lead arranger for about $425 million senior mezzanine facility for New Age (African Global Energy) Limited, a privately held oil and gas exploration, development and production company with assets primarily across Africa.

gitex
Image from Gitex 2015.

Nigeria and UAE collaborate on investment forum at Gitex 2016

The National Information Technology Development Agency (NITDA) will be co-managing the Africa Investment Forum (AIF) with the Dubai World Trade Center (DWTC) as part of major conference highlights around the major themes of this year’s Gitex Technology Week scheduled to hold in Dubai October 17, 2016.

Leadway Assurance partners with Swiss Re to promote agriculture insurance

Leadway Assurance Ltd is collaborating with the global reinsurance giant, Swiss Re, in championing the course of agricultural insurance awareness creation in Nigeria. Currently, only the federal government owned Nigeria Agricultural Insurance Corporation (NAIC) provides agricultural insurance to farmers.

NAHCO signs a string of new deals

One of Nigeria’s ground handling services providers, Nigerian Aviation Handling Company (NAHCO) has announced that it is continuing to cement its leadership position in the industry with the recent signing of a string of new international and local business deals. The list of new business partners include international air operators, Meridiana Fly (Italian Airline) and Mid – African Airlines (new Gambian flag carrier) which are making entries into Nigeria for the first time.

Cost of funds drop on improved market liquidity

The overnight tenor of the Nigerian Interbank Offered Rates (NIBOR) dropped to five percent on Friday, from 15 percent the preceding Friday due to inflow of cash from the Federation Accounts Allocation Committee (FAAC) as well as from maturing treasury bills.

The increased cash flow left the money market with a N267.10 billion surplus balance on Friday, reversing the N300 billion shortfall of a week ago and pushing down the cost of borrowing among commercial lenders.

ncaa

NCAA orders foreign airlines to stop selling tickets in dollars

The Nigeria Civil Aviation Authority (NCAA) has directed all airlines selling flight tickets in dollars to desist forthwith, describing the action as a flagrant contravention of Central Bank of Nigeria’s “prerequisite guiding cost of products or services in Nigeria.”

(With information from This Day Newspaper)