GE confirms $2 billion investment in Nigeria

General Electric has confirmed its interest in investing $2 billion on Nigerian railway concession project worth around $2 billion.
President Muhammadu Buhari said in his 1 October anniversary speech that GE would be investing $2.2 billion in a concession to revamp, provide rolling stock, and manage some of the country’s railways.
Given the size and scope of the proposed project, it is likely that the debt and equity commitments required from lenders, consortium partners and other co-developers will be in the range of $2

Gombe govt workers to get home renovation loan

The Gombe State government has perfected plans to begin home renovation loans to its civil servants.
To this end, the Head of Gombe civil service Dr. Deniel Mohammed Musa, said the state government has signed a Memorandum of Understanding (MoU) with the Federal Mortgage Bank of Nigeria (FMBN) to provide a platform for home renovation loan scheme.
While speaking in Gombe in his office recently, Musa explained that the MoU will create an avenue for civil servant to access a new package brought to them by the bank.

2 Nigerian banks close to insolvency, deficit – Analysts

Two Nigerian Banks are close to being insolvent, while two others “will need a dilutive capital hike,” Jaap Meijer and Tarek Sleiman, analysts at Arqaam Capital, Dubai-based investment bank and brokerage told Bloomberg yesterday.
According to the analysts in an e-mailed note, Capital ratios are set to worsen in the country’s banking system because of currency depreciation and souring loans. Calls to one of the banks were not immediately returned and the other did not reply to questions.
The Central Bank of Nigeria (CBN) in July replaced the management of Skye after the lender breached liquidity thresholds, spurring concerns about the health of small- and medium-sized lenders, and reviving memories of bank rescues by the government after the financial crisis in 2009.
Nigerian banks are grappling with a devaluation of the naira, rising bad loans and an

Emefiele, Adeosun allay concern over disharmony between CBN, Finance Ministry

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has said there is no disharmony between the bank and Ministry of Finance.
Speaking at a press briefing in Washington DC, United States, Emefiele said both the monetary and fiscal authorities were working hand-in-hand to get the much desired growth needed to get Nigeria out of recession, and towards much needed growth.
In September, the Minister of Finance, Kemi Adeosun, said the fiscal authorities were in need of low interest rates, to reduce the cost of borrowing.
However, the Monetary Policy Committee (MPC) of the CBN, against Adeosun’s request, held interest rates at 14 per cent, signalling some disunity between fiscal and monetary authorities.
According to The Cable, both Adeosun and Emefiele said there was no such disharmony, as that both authorities were working to achieve the same goal of driving growth.
“Just because the monetary policy committee finds themselves in a situation where they are

Emefiele promises review of forex policy to stimulate real sector

Nigeria’s prostrate industrial sector may soon get some fresh impetus as the Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has promised to review some aspects of the bank’s flexible exchange rate policy to allow more manufacturers and other end users more access to foreign exchange, after nearly two years of embargo on importers of 41.
Emefiele, who spoke in Washington DC, USA, after crucial sessions with foreign investors and other stakeholders including the International Monetary Fund (IMF), and the World Bank Group, noted that though the flexible exchange rate policy was commended by several stakeholders at the meetings, there may be need still to review some aspects of it in the months ahead, to boost job creation and manufacturing capacity. The policy change option was coming amidst huge job and capacity losses in the manufacturing and other critical sectors of the economy since its introduction on June 23, 2015.
“We heard the IMF Managing Director Christine Lagarde, saying there is need to consider further

NSE market indices record growth

The market indices of the Nigerian Stock Exchange on Monday recorded marginal growth, appreciating by 0.32 per cent due to marginal gains posted by some blue chips.
The News Agency of Nigeria reports that the market capitalisation grew by N31 billion or 0.32 per cent to close at N9.591 trillion against N9.560 trillion achieved on Friday.
Also, the All-Share Index, which opened at 27,835.22, improved by 89.78 points to close at 27,925.00.
A breakdown of the price movement chart showed that Nigerian Breweries led the gainers’ table growing by N2.21 to close at N148.01 per share.
Lafarge Africa followed with a gain of N1.80 to close at N49, while Guaranty Trust Bank gained 45k to close at N23.90 per share.
Zenith Bank increased by 32k to close at N14.55 and Union Bank of Nigeria appreciated by 24k to

Aisha Buhari warns against sale of interest-free loan forms

Wife of President Muhammadu Buhari, Aisha, has warned those selling the interest-free loan forms at the Federal Ministry of Women Affairs to “desist from sabotaging the programme and allow the Nigerian women feel the change mantra.”

Cross River plans N1.3trn investment

Governor Ben Ayade has drawn an ambitious economic ‘road-map’ of about N1.3 trillion for Cross River State.
Ayade stated this at the weekend during a meeting with a cross section of traditional rulers from the 18 local councils of the state who visited him in Calabar, the capital.
He said the projected amount was expected to come from both local and foreign investors who are

Global firm to begin manufacturing in Nigeria

The world’s largest tobacco company, Philip Morris International (PMI), with operations in 181 countries, has finalised plans to commence manufacturing in Nigeria before the end of 2016.
The investment comes in less than two years of their starting operations in Nigeria and clearly indicates the confidence the company has in the economy.
Upon its entry to Nigeria last year, PMI took the opportunity provided by the ECOWAS Trade

Nigerian-German bilateral trade nose dive by 50% in 2015

The volume of bilateral trade between Nigeria and Germany has decreased from 5.4 billion Euros in 2014 to 2.9 billion Euros in 2015, Frank-Walter Steinmeier, German Minister of Foreign Affairs, has said.
Steinmeier, who announced this on Monday at the end of Bi-National Commission between the German delegation and Nigerian counterparts, however, expressed worry over the 50 per cent decrease.
The Nigerian delegation at the meeting was led by Nigerian Foreign Affairs Minister, Geoffrey Onyeama.
Steinmeier said Nigeria remained Germany’s second most important economic partner inn Sub Saharan Africa.
He said that there was the need to strengthen on this development in the interest of both countries.
Steinmeier said: “Both sides believe that open markets are the most important prerequisite for free and rules-based trade to everyone’s mutual advantage.