Banking and Finance

Fastjet Signs MoU With Red1 Airways

Fastjet Plc has signed a Memorandum of Understanding with Nigeria’s Red 1 Airways Limited to operate a low-cost airline in Nigeria and other destinations across Africa.

A statement by Fastjet on Thursday said the airline would be branded Fastjet Nigeria, and the capital required for the venture will be provided by Red 1-Fastjet Plc.

A commercial arrangement will exist between Red 1 and Fastjet for the provision of the Fastjet brand, operational framework and management services.

Naira Weakens, Extends Biggest Weekly Drop

The naira weakened against the dollar, extending its worst weekly performance in a year, amid speculation the state-owned oil company sold limited foreign-exchange to the market.

According to London-based emerging markets strategist at Standard Bank Group Limited, Samir Gadio, the currency fell for a fourth day as dollar sales from Nigerian National Petroleum Corporation (NNPC) were less than expected.

Investors Withdrew $12.5b from Bonds

Investors withdrew a record $12.5 billion from bond funds in the week to June 5, Citigroup Incorporated said, citing global data.

The outflows were the first in 24 weeks, Markus Rosgen, Citigroup’s Hong Kong-based chief Asian strategist, wrote in a note on Friday.

Bloomberg News reports that investors also pulled $6.2 billion from stock funds, with $5 billion of that coming from emerging markets and $1.2 billion from developed nations, he wrote.

Stransact Partners Emerges Africa’s Best Tax Service Provider 2013

Photo R-L: Stransact Partners’ staff –Zainab Opoowu and Innocent Nwani being presented the Award plaque and certificate by the organiser of the African Brand Leadership Merit Awards.

Stransact Partners, on merit, has emerged Africa’s Best Tax Service Provider of the Year 2013 in the just concluded African Brand Leadership Merit Awards.

Nigeria, Canada target $6b trade volume by 2015

Nigeria and Canada have resolved to strengthen trade and investment ties by leveraging on areas of comparative advantage.

The two countries also agreed on strategies to double the volume of trade between them to $6 billion by 2015 as Canada also plans to review its visa processing time to aid trade and investment with Nigeria. Nigeria’s value of merchandise trade with Canada stood at about $2.7billion in 2011.

Budget Delay: Impact on Private Sector

The Federal Government’s budget is the lifeline of any economy. Government fiscal dynamics remains a major gauge of business confidence. It is likened to the mother ship from which all the small boats sail. Government spending on contractors, import bills, wages and allowances triggers other multiplier effects across the broad spectrum which translates into increased activities across the sectors.

Single Digit Inflation: How Sustainable?

Nigeria’s inflation rate dropped to the much coveted single digit level of 9% in January 2013. This was supported by similar significant moderation in all the major key inflation categories in manners that suggest a distributed moderation in the level of prices in the country. However, it is good to note that the moderations in the inflation figures are caused, largely, by the base effect.

Nigerian Business Confidence Index: Modest Improvement amid Uncertainty

Aggregate BCI
The second quarter (Q2) 2013 aggregate Business Confidence Index (BCI) recorded a modest improvement of 16.50% from the 10.50% it achieved in the first quarter (Q1) 2013. This represents a six point movement of the index along a positive trajectory. This improvement notwithstanding, the BCI scores for the Q1 and Q2, 2013 continue to trail far below the 50% global confidence threshold. Investors and business leaders are still wary about the state of the economy and the unfriendly doing business environment.