Banking and Finance

Sovereign wealth, pension funds should be invested in Africa –AfDB

The President of African Development Bank (AfDB), Dr Akinwumi Adesina, calls for a sovereign wealth funds and pension funds of Africa to be invested in the continent, not elsewhere.

The bank’s Communications and External Relations Department in a statement said Adesina stated this at the inauguration of the first report on the implementation of Agenda 2063 ahead of the 33rd African Union Summit in Addis Ababa.

SEC, DFID collaborate on financial technology development

The Securities and Exchange Commission (SEC) says it will partner with the Department for International Development (DFID) to develop the financial technology (fintech) space in the country.

The Head, Corporate Communication, SEC, Mrs Efe Ebelo, said this in a statement in Abuja.

Ebelo said that the partnership agreement was reached when officials of DFID visited the Acting Director-General of the commission, Ms Mary Uduk in Abuja.

Forex: CBN injects $218.41m, CNY 18m into retail secondary market

The Central Bank of Nigeria (CBN) has injected the sum of 218.41 million dollars into the retail Secondary Market Intervention Sales (SMIS).

 

The bank’s Director, Corporate Communications Department, Mr Isaac Okorafor made this known in a statement in Abuja yesterday, the News Agency of Nigeria reports.

 

Okorafor said 18 million Yuan was also injected in the spot and short-tenored forward segment of the inter-bank foreign exchange market.

 

He said the development was in continuation of the CBN intervention in the inter-bank foreign exchange market.

2019 Budget Implementation: Beyond the Miracle of FG’s Special Accounts

In the light of recently released data by the CBN (Q4:2019 quarterly report), we turn our attention to the fiscal performance of Nigeria in 2019. While we note that the data provided by CBN are provisional, history shows that actual numbers do not significantly deviate from the Bank’s estimates. The CBN’s report shows that federally collected revenues, which is shared among the FG, States and Local governments, rose 7.3% y/y to ₦10.2tn in 2019.  While this represents only a marginal boost on the surface, there is noticeable progress when revenue is deconstructed.

CPI Report: Headline Inflation Reaches 20-Month High of 12.0%

Nigeria’s latest Consumer Price Index (CPI) data revealed a rise in headline inflation rate to a 20-month high of 12.0% y/y in December 2019 from 11.9% in the prior month. This means average monthly inflation rate was 11.4% in 2019, below our revised estimate of 11.5% and amoderation from 12.2% in 2018.

Economic Review: 2019 In Retrospect

In 2019, world economies went through an upheaval. Some went from their lowest productive levels while others suffered a case of near economic meltdown.

There was a huge embrace of digital technology in the financial market as well as a high rate of youth participation in political and economic revival.

These are the some of the notable points of that year.

MONETARY POLICY RATE (MPR)

Nigeria’s monthly revenue drops by ₦387.15b

The Nigerian government’s revenue shortfall continues to pose a major challenge as monthly collected revenue dropped by N387.15 billion in November. This is disclosed in the latest Economic Report released by the Central Bank of Nigeria (CBN).

CBN in its latest economic report stated that the Federal Government collected N858.92 revenue in November, as against the monthly budget estimate of N1.24 trillion. This means federally collected revenue fell short of the monthly budget estimate by N387.15 billion (31.1% shortfall).

CBN reviews downward electronic transfer, ATM withdrawal charges

The Central Bank of Nigeria (CBN) has reviewed downward electronic transfer and ATM fees as well as card maintenance fees.

The new charges were contained in the latest Guide to Charges by Banks and Other Financial Institutions just released by the CBN

According to the CBN, bank customers will now pay N10 for electronic transfers below N5,000, and N25 for electronic transfer between N5,000 and N50,000.

Only electronic transfer above N50,000 will attract N50 charge.

Inflation increased by 11.85% in November 2019 –Statistics Bureau

The National Bureau of Statistics (NBS) said inflation increased by 11.85 percent year on year in November 2019.

The NBS made this known in ITS Consumer Price Index (CPI) and Inflation report for November released on Tuesday.

The bureau said the development was 0.24 percent points higher than the rate recorded in October 2019 which was 11.61 percent.

It explained that the increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.

Buhari signs 2020 budget into law

President Muhammadu Buhari yesterday in Abuja signed the 2020 appropriation bill of N10,594,362,364,830 into law.

News Agency of Nigeria reports that the budget was increased from N10.33 trillion to N10.594billion by the National Assembly.

About N560.47 billion of the total budget is for statutory transfers while N2.7 trillion is for debt service.

Other breakdown of the budget include N4,842,974,600,640 for Recurrent Expenditure; Capital expenditure N2,465,418,006,955; Fiscal Deficit N2.28 trillion and Deficit/GDP N1.52 per cent.

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