SEC bans two market operators for life

The Securities and Exchange Commission (SEC) has handed over life bans to Mr. Taofik Lawal and Mrs. Iyabode Lawal from operating in the Nigeria capital market for mismanagement of stocks and unauthorised sale of shares.
In a statement obtained from SEC’s website, the Commission noted that in the exercise of its powers under Section 13 of the ISA, 2007, it investigated complaints against WT Securities Limited and its Directors (Mr. Taofik Lawal and Mrs. Iyabode Lawal) and found them culpable of mismanaging the stocks of Mrs. Opral Mason Benson, and the unauthorised sale of the Nigerian Breweries Plc. shares belonging to Ngozi Onyekwere Nwachukwu.
“The actions of WT Securities Limited and the aforementioned Directors are in violation of Section 110 of the ISA 2007 and Rule 65 (1) of the Commission’s Consolidated Rules and Regulations 2013.
“Consequently, in accordance with Section 13 (bb) of the ISA 2007, Mr. Taofik Lawal and Mrs. Iyabode Lawal have been banned and blacklisted from operating in the Nigerian Capital market for

Tight monetary policy will help stabilise Naira, attract foreign investors – W’Bank

The World Bank has sanctioned Nigeria’s tight monetary policy environment, saying it would help stabilise the naira, strengthen real interest rates, and encourage a return of international investment in the economy.
The Bank also stated that Nigeria’s exchange rate adjustment which was effected in June this year, coupled with the modest improvement in oil prices would help boost the country’s oil revenues in naira terms.
This, in turn, should enable the federal and state governments to meet their financial obligations, including the clearance of salary arrears, and help boost demand, the multilateral donor institution added.
The World Bank stated this in its latest ‘Africa’s Pulse”, the Bank’s twice-yearly analysis of issues shaping Africa’s economic future, for October 2016, which was released yesterday.
The Central Bank of Nigeria (CBN) ditched its 16-month-old peg on the naira in June and introduced a flexible exchange rate regime to allow the currency to trade freely on the interbank market.

Crude oil prices rise as OPEC plans output cut

Mohammed Bin Saleh Al-Sada

Crude oil prices moved up by six per cent yesterday following the decision by the Organisation of Petroleum Exporting Countries (OPEC) to cut production in an attempt to curtail glut.
Specifically, Brent crude oil traded for $49.34 per barrel while West Texas Intermediate (WTI) rose to $47.89 a barrel.
This is a significant improvement from the $40 per barrel, for which it was sold a few weeks ago due to persistent global glut.
OPEC members had said after a series of deliberations in Algiers, Algeria on Wednesday, they were looking at the possibility of reducing crude oil production. But members would have to wait till November to finalise on the quantity of reduction that is suitable for each country.
The cartel, giving a summary of its decision at the meeting on its website yesterday, stated that members opted for production target ranging between 32.5 and 33.0 mbpd, to accelerate the ongoing drawdown of the stock overhang and bring the rebalancing forward.
It stated: “In the last two years, the global oil market has witnessed many challenges, originating

RwandAir finds biggest market in Nigeria

Rwandan flag carrier, RwandAir, has attested to the strength of the Nigerian air travel market, declaring it as a major traffic zone for airlines in the African region.
The airline said economic challenges notwithstanding, the market remains committed to the air travel sector.
RwandAir Country Manager, Ibiyemi Odusi, said the last financial year was a good outing for the airline on the Nigerian route, as its revenue outflows and passenger traffic were the highest in terms of growth in the RwandAir network.
Odunsi said it is for this reason that RwandAir holds dearly its Nigerian operations, adding that the airline would continue to invest in Nigeria with new products that will endear its patronage.
She said Nigerian passengers have demonstrated patronage and commitment to the airline and that it was time to give back with more quality services and competitive fares.
It would be recalled that with the exit of the likes of United and Iberia Airlines, and spike in ticket

Northern Nigeria Flour Mills commences installation of $15m sorghum mill

Northern Nigeria Flour Mills (NNFM) has commenced the installation of a sorghum milling facility worth $15 million to produce flour from locally grown sorghum for inclusion into wheat flour products.
Besides, Flourmills of Nigeria Plc (FMN) has disclosed plans to convert NNFM Kano to a subsidiary.
The milling facility, according to the Chairman of the FMN Group, John G. Coumantaros, consists of yearly capacity of 100,000 metric tonnes, saving an estimated $25 million in foreign exchange yearly.
Coumantaros, who spoke during the 44th yearly general meeting of NNFM Plc, expressed optimism that the investment would boost the company’s profitability in the coming years to the delight of all stakeholders.
He noted that the sorghum milling process, which would be ready for commissioning during the first quarter of 2017, is expected to enhance the usage and consumption of local grains, thereby

How FG plans to boost exports – NEPC boss

Olusegun Awolowo

The Nigerian Export Promotion Council (NEPC) has listed factors that could support indigenous exporters to increase the volume of their exports.
Executive-Director of the NEPC, Olusegun Awolowo, disclosed yesterday at the 22nd seminar for Finance Correspondents and Business Editors (FICAN) in Abakaliki, Ebonyi State that the Export Expansion Grant (EEG) was suspended to be reformed, so that it could efficiently play its role of supporting Nigerian exporters to increase the volume of their exports.
According to Awolowo, it would enhance the contributions of non-oil export to the national economy and broaden export product and market coverage.
Furthermore, he said the grant would support the diversification of the productive base of the economy as well as payment with Negotiable Duty Credit Certifications, among others.

Nigerian banks remain strong – CBN tells Afreximbank

The Central Bank of Nigeria (CBN) has reiterated that the nation’s Deposit Money Banks are strong despite the ongoing challenges in the foreign exchange market.
CBN Governor, Godwin Emefiele, at the third quarterly meetings of the Board of Directors of the African Export-Import Bank (Afreximbank), in Lagos, yesterday, reaffirmed that the country’s banks remained strong.
The reaffirmation may have become necessary, as the regional trade bank appeared to have several business interests in the country, with more recently, a $150 million facility granted Heritage Bank Plc.
In a special presentation to the board members, Emefiele outlined the measures CBN and the government had put in place to address the problem of foreign exchange scarcity in the country.

MAN renews complaints over forex, supports FG’s assets stripping

Weeks after the Central Bank of Nigeria (CBN) said foreign exchange allocation to the real sector would be increased to 60 per cent, operators have denied noticeable improvements.
Besides, they have thrown weight behind the Federal Government’s plans to reduce holdings in some national assets as a way of raising fund to fight recession and ensure efficiency in their operations.
A section of the real sector operators under the aegis of Manufacturers Association of Nigeria (MAN) yesterday, said its members are yet to benefit from the 60 per cent allocation by CBN alleging that there are discordant tunes coming from the apex bank.
Speaking ahead of its ‘Manufacturers Yearly Lecture’, President, MAN, Dr. Frank Jacobs, reiterated that government should reduce some of its shareholding on national assets.
“LNG is a profitable company, government has huge share of 51 per cent which is managed efficiently by the private sector. If government reduces equity from some of these assets, they