Banking and Finance

SME funding gap in Nigeria, others hit $140b

Studies have indicated that more than 70% of the Small and Medium Scale Enterprises (SMEs) in Africa, including Nigeria, lack access to medium-longer-term finance, creating an SME funding gap of more than $140 billion in the continent.

Consequently, protection of SMEs through the establishment of a solid framework supported by government policy is the first step in creating an active Small and Medium Enterprises sector.

Banks Anticipate Result of New Forex Auction System

After the replacement of the wholesale foreign exchange auction method called Wholesale Dutch Auction System (WDAS) with the newly introduced retail foreign exchange auction system (RDAS) on Wednesday by the Central Bank of Nigeria (CBN), the financial market anticipate the outcome and how possibly it will affect the economy. This measure was taken as a tool to control money laundering and reduce inflation crisis.

Stock Exchange Upgrades System to X-Gen

The Nigerian Stock Exchange (NSE), on Monday, successfully rolled out its, potentially, fastest trading platform in Africa, the X-Gen.

The upgrade is a historic milestone for the capital market community and will reinforce Nigeria’s position as a regional financial center.

The delivery of the new age technology serves as a testimony that the NSE has succeeded in achieving one of its key goals of providing 21st century technologies to support the growth of the Nigerian Capital Market.

How Sustainable Are State Governments’ Finances?

At the end of 2012, Nigerian state governments owned a total of $2.38 billion (₦369.55 billion) in external loans. There is about ₦545.50 billion in outstanding subnational bonds issued by 15 of the 36 state governments. An additional ₦270 billion in subnational bonds could be attributed to eight of the remaining states who are in advanced stages of issuing bonds. In addition, the state governments have varying levels of exposure to commercial banks which cumulatively could run into hundreds of billions of naira.

Global Shares Fall amid Uncertainties

Photo: President Goodluck Jonathan ringing the closing bell at the New York Stock Exchange on Monday, September 23, 2013.

World stocks fell, yesterday, amid political turmoil around the globe.

The United States stocks fell on Monday as comments by a Federal Reserve official and a looming political deadline in Washington outweighed earlier upbeat economic data from Germany and China, Reuters reported.

Inflation Projected to Remain at Single-digit in 2014

The Central Bank of Nigeria (CBN), yesterday, said that the inflation rate is projected to remain at the single-digit band till the end of this year and throughout 2014.

The CBN Governor, Sanusi Lamido Sanusi, who spoke at the ‘Euromoney Nigeria Banking and Capital Markets Conference’ in Lagos, said that although the growth rate of the economy had been at over 6%, in the last 10 years, it is projected to grow by 7.6% in 2014.

Inflation Rate Eases to 8.2%

The National Bureau of Statistics (NBS), in its latest Consumer Price Index (CPI) figures, reported that inflation eases to 8.2% in August.

All-Items Index
In August, the Consumer Price Index (CPI) which measures inflation rose by 8.2% year-on-year, 0.5 percentage points lower from the 8.7% recorded July.

Daily Market Update –September 16, 2013

Trading activities at the Nigerian Stock Exchange (NSE) was bearish, yesterday, as market capitalisation of equities depreciated by 0.65% or ₦75 billion to close at ₦11.42 trillion, from ₦11.49 trillion.

Also, the NSE’s All-Share Index fell by 0.65% or 236.19 basis points to close at 35,861.88 points.

With the exception of the NSE-ASeM, which closed flat at 962.31 basis points, all other indices closed lower.