Business Tips

MSCI Keeps Nigeria in Frontier Indexes, No Longer Under Review

Index provider MSCI said Nigerian stocks will remain part of its frontier indexes and are no longer under review for a possible demotion - a status which the securities had been under since September 2016 after the government introduced capital controls, Reuters reports.

“The market will be removed from the review list for potential reclassification to Standalone status,” MSCI said in a statement posted on its website late on Thursday, adding that the central bank’s introduction of a new foreign exchange window in April had improved the situation for foreign investors.

FG, State, LG Revenue falls by ₦80b

The Federal, States and Local Governments shared N558.082 billion in October, N80 billion less than the N637.704 billion revenue shared in September, Ahmed Idris, the Accountant-General of the Federation has said.

Idris made this known at the end of the monthly Federal Accounts Allocation Committee (FAAC) meeting on Tuesday in Abuja.

According to him, the N558billion included proceeds from Value Added Tax (VAT).

West African Leaders Plan Shared Currency by 2020

A group of four West African presidents said on Tuesday they planned steps to accelerate the creation of a shared currency for the 15-country ECOWAS bloc by 2020, according to a joint statement.

The future currency, whose name is yet to be determined, would replace the dominant CFA Franc introduced by former colonial power France in 1945 and whose treasury still backs it, Reuters reports.

Osinbajo Seeks Global Action to End Secret Corporate Ownership

The Vice President, Prof. Yemi Osinbajo, on Monday called for global action to stem the tide of secret corporate ownership of industries to avoid fraud, money laundering and tax evasion by industries.

Osinbajo made the call in a paper he presented at the Extractive Industries Transparency Initiative (EITI) conference holding in the Indonesian capital, Jakarta.

He lauded the efforts already made by some developed countries to ensure compliance with disclosures but noted that developing countries were far behind and had paid supreme prices for negligence.

Turkey's Erdogan calls on Developing Countries to Trade in Local Currencies

Countries from the so-called “D-8” group of developing nations should trade with each other in their local currencies, Turkish President Tayyip Erdogan said on Friday, to alleviate the forex pressure inherent in dollar-based trade, Reuters reports.

“If we are to use local currencies for trade within the D-8, our currencies will be rid of the pressures from foreign exchange and the dollar,” Erdogan told a summit of the eight developing nations, which is being held in Istanbul.

Nigeria Plans Record Budget of ₦8.6tr in 2018 –Fiscal Paper

Nigeria plans to increase its budget to a record 8.6 trillion naira ($27.34 billion) in 2018, up 15.5 percent from this year to stimulate growth, according to a draft budget document seen by Reuters on Thursday.

The country, which has Africa’s biggest economy, emerged from its first recession in 25 years in the second quarter and has trimmed its forecast for 2017 growth to 1.5 percent from 2.19 percent, according to the document.

Nigeria Sells ₦134b Treasury Bills

Nigeria was to sell 133.78 billion naira worth of treasury bills at an auction on Wednesday, traders told Reuters on Wednesday.

The central bank is offering 32.4 billion naira in three-month paper, 35 billion naira in six-month bill and 66.38 billion naira in one-year note.

The bank issues treasury bills twice a month to help the government to finance its budget deficit, curb money supply growth and provide an avenue for lenders to manage liquidity.

The Debt Management Office plans to sell 100 billion naira in five and 10-year bonds on Oct 25.

Consultants Inhibit Tax Agencies –Ex FIRS Boss

The former Chairman of the Federal Inland Revenue Service (FIRS), Mrs Ifueko Omoigui-Okauru, said she did not engage consultancy service during her tenure in FIRS because of its long term disadvantages.

She told the News Agency of Nigeria in Nairobi, Kenya, on the sidelines of the 5th Pan African Conference on curbing Illicit Financial Crimes from Africa, that the use of consultants in revenue activities could cripple tax institutions.

Sub-Saharan Africa to Grow at a Slower Rate this Year, World Bank Says

The economy of sub-Saharan Africa is seen growing more slowly this year than previously forecast, largely due to weak investment and productivity, the World Bank said on Wednesday.

In a report, it forecast growth in the region to be 2.4 percent in 2017, down from the 2.6 percent that it projected in April. But growth was seen rising to 3.2 percent in 2018 and 3.5 percent in 2019, forecasts unchanged from earlier this year, Reuters reports.