FG Got N2.2tr from Federation Account in One Year – Thisday

Facts have emerged that the federal government under President Muhammadu Buhari got a total N2,203,573,573,563.25 from the Federation Account as allocation between June 2015 and May 2016.

In a recent search by the Economic Confidential, the economic intelligent magazine and carefully computed, the administration under Buhari’s watch got the highest allocation in July 2015 with N412.60 billion and the lowest allocation within the period under review of N113.80 billion in May 2016.

The report further reveals that in June 2015, the federal government received N173.91 billion made up of N159.72 billion for consolidated Revenue fund, N3.27billion for share of derivation and ecology, N1.63 billion for stabilisation fund, N5.49 billion for development of natural resources,   and N3.78 billion for the Federal Capital Territory Administration (FCTA).

In  August, September and October 2015, it  received N216.99 billion, N180.86 billion and N162.93 billion  respectively.

Read more at http://www.thisdaylive.com/index.php/2016/08/01/fg-got-n2-2tr-from-federation-account-in-one-year/

Concerns Mount over $1.3bn Power Sector Loans – Thisday

Inadequate gas supply due to pipeline vandalism, the looming threat of reversal of electricity tariff hikes, inability of power companies to sign gas supply contracts, and large amounts of debt owed to power companies by ministries, departments and agencies (MDAs) of the three tiers of government have raised concerns around bank loans to the power sector.

A report by Lagos-based CSL Stockbrokers Limited titled: “Banks and Power Sector Exposure,” obtained by THISDAY at the weekend, showed that the total power sector exposure of eight banks namely: FBN Holdings Plc, Zenith Bank Plc, United Bank for Africa Plc (UBA), Guaranty Trust Bank Plc (GTBank), Access Bank Plc, Diamond Bank Plc, Fidelity Bank Plc and Skye Bank Plc stood at N402 billion ($1.3 billion) in their full year 2015 financial results.
The report estimated that a default in power sector loans could raise banks’ cost of risk (COR) in 2016 from 2.4 per cent to 3.9 per cent in aggregate terms.
“We arrive at this by modelling the effect of a 30 per cent default rate on power sector loans. A rise in the COR of this order would lower our 2016 forecast aggregate net profits for the five largest banks by about 18 per cent and a more significant of about 95 per cent for the smaller banks,” it added.
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Dollar to Naira Rate Black Market August 1 2016

Dollar to Naira Rate Black Market August 1 2016. Today’s Naira Black Market Exchange Rates. Dollar to Naira. Pounds to Naira. Euros to Naira.

These are the prevalent rates for Lagos. Actual rates may vary slightly based on vendor. Rates are updated during the day as they change.

NAIRA (N)

USD ($)

EURO (€)

GBP (£)

BUY/SELL

BUY/SELL

BUY/SELL

1/8/2016

377/382

407/416

487/497

29/7/2016

372/378

405/415

485/495

28/7/2016

370/378

405/415

484/494

27/7/2016

370/378

405/415

480/494

26/7/2016

370/378

405/415

485/495

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Check out trending news stories that could affect today’s black market rates at fxmallam.com/news/

cSupply Gap Widens in Forex Market – Thisday

The naira depreciated against the US dollar at all the foreign exchange market segments last week as dollar liquidity remained tight at the interbank market.

On the interbank market, the naira fell against the greenback by N13.18 to close at N321.16 to a dollar last Friday, as against the N307.98 to a dollar it attained the preceding Friday, amid strain in dollar supply as the Central Bank of Nigeria (CBN) did not intervene in the market. The naira even fell as low as N330/$1 during the week.

Meanwhile, the CBN settled N962.23million in matured 1-month futures contract, being total settlement amount to its banking counterparties at N279/USD last Wednesday.

The expired contract, according to analysts at Cowry Asset Management Limited, was replaced by a new one year contract, Naira-Dollar JUL 19 2017, with a total notional amount on offer of $1 billion at N250/$1.

Forex traders were said to have executed 51 deals worth $189.37million between last Monday and Thursday.

On the other hand, the naira also depreciated at the Bureaux De Change (BDC) and the parallel market arms of the market by 1.37 per cent and 0.80 per cent to N370/$1 and N378/$1 respectively as unmet dollar demand continued to spill into the alternative market segments.

Read more at http://www.thisdaylive.com/index.php/2016/08/01/csupply-gap-widens-in-forex-market/

IPMAN investment denies alleged N10.9bn subsidy scam – Today.ng

The Managing Director of IPMAN Investment Limited, Mr Tunji Adeniji, has exonerated its company over reports of alleged N10.9 billion subsidy scam credited to a factional president of IPMAN, Elder Chinedu Okoronkwo.

In a statement after the IPMAN NEC meeting in Abuja, the allegation was described as false allegations that its Board of Trustees Chairman, Alhaji Aminu Abdulkadir embezzled the proceeds of petroleum subsidy claim of the association amounting to over N10.9 billion.

He said that the allegation, which was recently attributed to Okoronkwo, one of its factional leaders, was untrue insisting that the accused was not guilty of such crime, adding that he was committed to the IPMAN Investment Limited.

He added that the allegation was the handiwork of elements that were unhappy with the current peaceful state of the association.

He, however challenged anyone with evidence of wrong doing in IPMAN to come forward with such information for appropriate actions, insisting that there was nothing like a N10 billion subsidy claims.

Read more at https://www.today.ng/business/160434/ipman-investment-denies-alleged-n10-9bn-subsidy-scam

CBN sold $1.13bn Forex to banks, others in May – Today.ng

The Central Bank of Nigeria has said its foreign exchange sales to the authorised dealers, including banks and others, amounted to US$1.13 billion in May 2016, representing 2.6 per cent decline compared to the level in April 2016.

The apex bank revealed this in its just-released Economic Report for May 2016.

The report also disclosed that, foreign exchange inflows through the CBN, at US$1.51 billion, rose by 31.8 per cent, in contrast to the level in the preceding month, but fell by 13.7 per cent relative to the level at the end of the corresponding period of 2015.

According to the CBN, “The development reflected a 272.8 and 116.0 per cent rise in non-oil inflow relative to the levels in the preceding month and the corresponding period of 2015, respectively. Aggregate outflows through the CBN, at US$1.71 billion, fell by 19.8 and 41.5 per cent, compared with the levels in April 2016 and the corresponding period of 2015, respectively.

“The development was driven, mainly, by the decrease in interbank sales, other official payments, and 3rd party MDA transfers. Overall, a net outflow of US$0.20 billion, was recorded through the CBN, compared with the net outflow of US$0.99 billion in the preceding month.”

Similarly, the CBN noted in the latest economic report that aggregate foreign exchange inflow into the economy was US$3.93 billion, in May 2016.

Read more at https://www.today.ng/business/160422/cbn-sold-1-13bn-forex-banks