The Nigeria Deposit Insurance Corporation has said the use of the bridge bank option to resolve the failure of the defunct Skye Bank Plc is the most effective way to curtail the spread of systemic risks that can endanger the financial system and lead to loss of jobs. The Managing Director, NDIC, Alhaji Umaru Ibrahim, said the establishment of Polaris Bank was in line with the corporation’s core mandate of guaranteeing deposits and resolving bank failure and illiquidity. He stated that while the corporation had other bank failure resolution measures such as purchase and assumption, provision of liquidity support, assisted merger, takeover and management of ailing banks and outright liquidation, the bridge bank option allowed unhindered operation of the lender, while efforts to source
The Federal Government needs to urgently implement policies that will grow and diversify the revenue base of the country to avoid imminent debt crisis, the FSDH Research has said. It stated this in its latest monthly economic and financial markets outlook it titled ‘Interest rate hike in US, hold in Nigeria: What Next?’. The FSDH said its analysis showed that the growth in Nigeria’s debt was higher than the growth in revenue. “In addition, Nigeria has the lowest government revenue to Gross Domestic Product ratio at six per cent among some selected countries. Nigeria’s over-dependency on crude oil revenue, combined with volatility in both the price and production of crude oil is the major reason for sluggish growth in government revenue. “Our analysis of the ratio of the inter
Stakeholders in Nigeria’s entertainment industry, led by the Lagos Business School (LBS), the advertising practitioners and film makers have come together to explore opportunities that will bring more investment to the industry they collectively agreed can help in tackling unemployment in the country. The occasion was the Lagos International Executive-MBA Week, themed, ‘playing to win in Africa’, Exploring Business Opportunities in Nigeria, aimed at fostering cultural immersion and expose participants to the culture, values and business environment in Nigeria and Africa at large. Speaking on LBS intervention in the entertainment industry, Academic Director, International EMBA Week and Director MBA, Lagos Business School, Dr. Uchenna Uzo, said the focus this year was to celebrate the cre
The African Development Bank, along with some partners across the globe, has announced the securing of $1bn to enable investment in infrastructure development across the African continent, including Nigeria. The announcement, which was made in Ottawa, Canada, according to a statement made available to our correspondent by the AfDB, listed the partners in the multi-level securitisation to include the European Commission, Mariner Investment Group, LLC, Africa50 and Mizuho International Plc. The portfolio tagged: Room2Run, is $1bn synthetic securitisation corresponding to a portfolio of seasoned pan-African credit risk.According to the bank, Room2Run is the first-ever portfolio synthetic securitisation between a multi-lateral development bank and private sector investors, pioneering the...
Following renewed bargain hunting embarked upon by stock market investors, transactions on the equity sector of the Nigerian Stock Exchange (NSE), closed upbeat yesterday, as the All-share index rose marginally by 0.3 per cent. Specifically, at the close of transactions yesterday, the All Share Index (ASI) gained 96.18 absolute points, representing a growth of 0.3 per cent to close at 34,933.86 points. Similarly, the market capitalisation gained N35 billion to close at N12.753 trillion. The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Okomu Oil, Guaranty Trust Bank, Zenith Bank, FBN Holdings, and Custodian and Allied Insurance. Analysts at APT Securities and Funds Limited, said: “the NSE-ASI ended the trading session on a positive
Ecobank Nigeria said it had developed initiatives to support trade business and lending to its target customers. The Managing Director designate, Patrick Akinwuntan, said this during the introduction of the Ecobank Nigeria Emerald Business Club in Lagos. He said,” This is an exclusive product for our key local corporate and the SME clients. This is founded on our long-term commitment to support indigenous businesses within the country and in line with Ecobank‘s vision to contribute to the economic development and financial integration of Africa.” He said the bank recognised the need for Nigeria and Africa as a whole to grow, hence its unrivalled drive to contribute its quota as a bank in developing the economy, through the provision of sustainable banking products and services that w
The year-to-date decline of the Nigerian Stock Exchange (NSE) All-Share Index worsened to 7.4 per cent yesterday as the stock market maintained a downward trend. Prevailing weak investor appetite has continued to depress share prices for the past weeks. While the market went down by 2.89 per cent to hit a 10-momth low last week it has opened this week on another bearish note, shedding 0.13 per cent. Specifically, the NSE ASI closed lower at 35,399.28, while market capitalisation shed N17 billion to end at N12.9 trillion. The bears were in total control as 26 stocks lost value compared with only 14 that added value. Although highly capitalised counters such as United Bank for Africa Plc, Guinness Nigeria Plc, GTBank Plc and Zenith Bank Plc, were largely responsible for negative per...
The nation’s stock market extended its decline on Monday as 25 companies, led by Ikeja Hotel Plc, recorded losses at the end of trading. The market capitalisation of listed equities fell slightly to N13.315tn while the All Share Index of the Nigerian Stock Exchange closed at 36,479.42 basis points. Twenty-one stocks appreciated at the close of trading on Monday, with Consolidated Hallmark Insurance Plc leading the pack. Last week, the NSE ASI depreciated by 0.37 per cent, while the market capitalisation appreciated by 0.38 per cent to close at 36,499.67bps and N13.322tn, respectively. Meanwhile, the Nigerian capital market will on Wednesday witness the launch of the Association of Securities Exchange of Nigeria at the Nigerian Stock Exchange. The NSE, in a statement on Monday, descri
The World Bank has indicated its willingness to provide technical support for Nigeria in critical areas to facilitate her economic growth and development. The World Bank’s Vice-President for Africa, Mr Hafez Ghanem, who gave the indication in Abuja during a discussion with the Minister of Budget and National Planning, Udo Udoma, said the lender accorded Nigeria top priority in its considerations. He said the bank would be willing to provide technical support for Nigeria in the areas of the Economic Recovery and Growth Plan mid-term review, power sector reform, Public-Private Partnerships as well as population management. The World Bank is also disposed to providing technical support on the ERGP delivery, performance tracking and reporting, capacity building for sector officials and e