Showing posts with label Business News. Show all posts
Showing posts with label Business News. Show all posts

Saturday, March 25, 2017

Dollar now N385 at street markets, as CBN supplies $100m

Dollar now N385 at street markets, as CBN supplies $100m

Traders in Abuja and Lagos yesterday purchased United States dollar at the rate of N385, indicating greater apprehension among dealers and speculators.

The traders said the naira continues to firm up against major currencies, due to the consistent supply to the market by Central Bank of Nigeria.



The apex bank yesterday offered the sum of $100 million to meet the requests of wholesale customers, out of which $91 million was taken.

Confirming the offer, the Acting Director of Corporate Communications at the CBN, Isaac Okorafor, disclosed that the dealers will have value for their respective bids on Friday, March 24, 2017.

While further disclosing that the highest and marginal bid rates were N330/$1 and N320/$1, respectively, Okorafor said no intervention was made by the Bank to meet requests for invisibles on Thursday.

The naira so far appreciated by about 25 percent in the parallel market since the beginning of the CBN new forex policy announced on February 20th. Before the new policy the dollar was exchanged at N520.
Nigeria to spend $143bn on ICT imports by 2019 – NITDA DG

Nigeria to spend $143bn on ICT imports by 2019 – NITDA DG

If the trend of importation of ICT products is not stopped or at least reduced to a barest minimum, Nigeria would be spending $143.8bn on ICT imports in 2019, the Director General of the National Information Technology Development Agency [NITDA] Dr Isa Ali Ibrahim has said.


So far the country loses approximately N1.52trillion ($3.8bn) every year through importation of Information and Communications Technology products, services and software.


Dr Ibrahim, who disclosed this in an interview with Daily Trust in Abuja yesterday, said importation of virtually every ICT software and hardware was killing the local IT industry and draining the country of foreign exchange.

 ‘’We want to solve the problems bordering on local content in the ICT sector in the country. We are not happy at all that Nigeria loses so much on importation of IT products and services as well as software. Approximately, $2.8billion are being lost annually from importation of ICT goods and services, including $1bn spent also annually on importation of software into the country. This is huge; if we don’t act quickly to reduce this, the survival of our local industry will be at risk’’, the NITDA DG said.

He said one of the best ways to prevent or reduce corruption in the civil service is by looking thoroughly into the IT projects being embarked upon by MDAs.

‘’ I realised this is the best way to fight corruption in Nigeria. Most of the MDAs insert IT projects in their budgets not because they need it, but because it is the easiest way to circumvent the questions of Senators or House of Representatives at the National Assembly’’, he said.

While revealing that some civil servants who designed budgets for MDAs used IT projects as a conduit to siphon government money, he said NITDA had detected and was ready to put an end to it.

He said, ‘’NITDA is the clearing house for all IT projects. The Federal Government has mandated all MDAs to seek for NITDA clearance before embarking on any IT project. We have recorded some successes in the enforcement of this policy and we need to maintain the tempo.’’

Dr Ibrahim also said NITDA was already filtering the ICT products and monitoring all software being imported into the country in a bid to reduce capital flight and build local industry.

He said the agency’s Act stipulates that any CEO of any MDAs who deployed any IT project without NITDA clearance is liable to one or three years imprisonment.

Saturday, March 4, 2017

Reason Why Gtbank Bans Paypal Services On Their Mastercard

Reason Why Gtbank Bans Paypal Services On Their Mastercard

Reason Why Gtbank Bans Paypal Services On Their Mastercard 


MD of Guaranty Trust Bank, Segun Agbaje at an event on Friday gave insight as to why the bank stopped its customers from having access to PayPal services. According to him, some fraudsters opened multiple accounts in people’s names, collected dollars at the official rate, and then sold the dollars in the black market. He however said, that the bank was working on a way to filter out genuine business people and give them access to the platform.


He made this comment at a GT bank event during Social Media Week Lagos, tagged “Banking in The Age of Social.” He also stated that the bank was working on a revamped version of its banking app, that would be called GT World.

PayPal is one of the top online payment processors globally. The company was established in 1998, and went through several mergers and transitions before being acquired by E-bay after its IPO in 2002.

Nigerian businesses, who were importing goods into the country, transferred money into their PayPal accounts, then paid for goods. PayPal is also a common means of exchange for people who operate online businesses.

Guaranty Trust bank, also known as GT Bank, is one of the foremost tier one banks in the country. The bank is also dominant in Nigeria’s version of mobile money service using its 737 platforms which carries out transactions running into billions of Naira every month. Segun Agbaje, is on his final lap as MD of the bank.

Friday, March 3, 2017

Nestle Nigeria In Big Loss In Exchange Rate As Naira Depreciate

Nestle Nigeria In Big Loss In Exchange Rate As Naira Depreciate

Nestle Nigeria In Big Loss In Exchange Rate As Naira Depreciate


Nestle Nigeria Plc released its 2016 results showing revenues rose 20% to N181.9 billion (2015: N151.2 billion). Profit after tax however declined by 67% to N7.9 billion (2015: N23.7 billion).

Nestle blamed the drop-in profits on the impact of forex devaluation after the company incurred a N20.8 billion interest expense. Foreign exchange loss made up about N16.3 billion of this loss.


Nestle currently has a total external borrowing of about N50.5 billion with about N3.9 billion denominated in Naira. The rest are loans owed to its related parties and include interest expenses ranging from Libor+2.7% to Libor+7.6%.

Foreign currency translation of the dollar loans required that they take an exchange rate loss of about N16.3 billion. Nestle also reported a significant increase in raw material cost jumping from N57.4 billion in 2015 to N75.4 billion in 2016.

The CBN in June 2016, devalued the naira after it introduced the Flexible Exchange Rate Policy. This depreciated the naira from about N197 to N315 at the interbank forcing companies that took foreign denominated loans to take a foreign exchange loss.

Nestle Nigeria share price has lost about 26% this year alone and closed at a one year N570. It is currently up 5% one hour into trading on Monday.