Business Tips

Senate Passes 2018-2020 Budget Framework, Raises Oil Price Estimate

Nigeria’s Senate passed the government’s medium-term expenditure framework for 2018-2020 on Tuesday, raising its oil price assumption to $47 from $45 per barrel, Reuters reports.

The document, which the government agreed upon in August before sending it to lawmakers for approval, is the framework used to prepare the country’s budget.

Nigeria signs MoU to recover $321m loot from Switzerland

Nigeria has signed a Memorandum of understanding (MOU) with Switzerland for the return of  $321 million in looted funds to Nigeria.

Nigeria’s minister of justice and attorney general, Mr Abubakar Malami, signed the MOU with Swiss authorities on Monday in Zurich.

He expressed gratitude for the international support Nigeria was getting in the fight against corruption.

Global collaboration, he said was critical to the success of the fight.

Nigeria’s FX Reserves at $34.53b

Nigeria’s foreign exchange reserves stood at $34.53 billion as of Nov. 24, up nearly 3 percent from a month earlier, central bank data showed on Thursday.

The bank did not provide a reason for the increase in reserves, which stood at $33.58 billion at the same date last month.

Nigeria’s forex buffer has climbed 40.5 percent this year from a year ago, but is still far off a peak of $64 billion hit in August 2008.

AfDB Portfolio in Nigeria over $6b –Adesina

The President of African Development Bank (AfDB), Dr Adewumi Adesina, has said that the bank’s total active portfolio in Nigeria is over six billion dollars.

Adesina said this in an interview with the News Agency of Nigeria on Wednesday in Abuja.

“The bank supports Nigeria very strongly.

“When Nigeria was going through a tough economic time, we led the world actually in rallying support around for a budget support which we did at 600 million dollars to help build more resilient economy as it shows a better diversified economy.

Nigeria Raises ₦119.9b at Treasury Bill Auction

Nigeria raised 119.9 billion naira at a treasury bill auction on Wednesday after allocating almost 90 percent of the debt to the longer maturities, traders said.

The central bank sold 107.93 billion naira of one-year debt at a rate of 15.60 percent, 43.26 billion naira more than it had initially offered to sell in that maturity.

Investors bid as high as 18.23 percent for the one-year paper. However, the government has been offering debt at lower yields to track declining inflation, which fell for the ninth month in October to 15.91 percent.

Senate Gives Go-ahead for $5.5b Foreign Borrowing

Nigeria will move ahead with plans to borrow $5.5 billion from foreign investors after the Senate on Tuesday approved President Muhammadu Buhari request for the move.

The money is designed to plug a large gap in Nigeria’s finances that stems in part from the global fall in oil prices.

Nigeria’s economy grew in the second quarter, climbing out of its first recession in 25 years, but the pace of growth was slow suggesting that the recovery remains fragile.

Airline Revenue of $1.2b Blocked Across Africa –IATA

The global airline industry has $1.2 billion blocked in nine dollar-strapped African countries, the International Air Transport Association (IATA) said on Monday.

The global commodities price crash that began in 2014 hit economies across Africa hard, particularly big resource exporters such as Angola and Nigeria. Low oil and mineral prices have reduced government revenue and caused chronic dollar shortages and immense pressure on local currencies.

The fiscal slump has meant governments have not allowed foreign airlines to repatriate their dollar profits in full.

Afrexim Bank to Invest $25b in Intra-African Trade

The African Export-Import Bank has reiterated the commitment of the bank to promote Intra-African trade on the African continent.

Dr Benedict Oramah, the President of Afrexim Bank, said this at a news conference on Wednesday in Abuja.

According to Oramah, the bank had a new strategy in Nigeria called “Impact 2021 African transformed’’ which was inaugurated in January.

He said that the strategy is keyed on three pillars of intra-African trade, industrialisation and export manufacturing, and trade finance leadership.

Bonds Shrug off Moody’s Downgrade as Investors seek Yield

Nigeria’s bonds were flat on Wednesday, shrugging off a downgrade by Moody‘s, since investors had already factored in issues that triggered the rating change and were buying debt at a discount to book profits, traders said.

Ratings agency Moody’s cut Nigeria’s long-term foreign-currency bond to B1 from Ba3 and kept its outlook stable, saying Nigerian efforts to broaden non-oil revenue had been unsuccessful. The local-currency rating was unchanged at Ba1.

Paradise Papers: FG to Probe Users of Tax Havens

The Federal Government is to investigate all Nigerian who have been linked to offshore accounts in some tax havens as leaked by Paradise Papers.

The Minister of Finance, Mrs Kemi Adeosun, disclosed on Tuesday that the government would be investigating high net-worth individuals and companies who frequent offshore tax havens.

While fielding questions at an interactive session with newsmen on the use of offshore jurisdictions with favourable tax laws, Adeosun said that the government would look into tax avoidance by Nigerians.