Business News in Brief

Flour Mills of Nigeria Plans $127m Share Sale

Flour Mills of Nigeria has filed application to the stock exchange to raise 39.86 billion naira ($127 million) via a share sale to existing shareholders, the bourse said on Friday.

The flour manufacturer plans to sell 1.47 billion ordinary shares at 27 naira, a 21 percent discount to Friday’s market price of 34.13 naira. It would offer nine new shares for every 16 already held via rights issue, Reuters reports.

Proposed Rights Issue Statement Below

Customs Impound Contraband Valued ₦1.59b

The Federal Operations Unit of the Nigeria Customs Service (NCS) intercepted various contraband with a Duty Paid Value (DPV) of N1.59 billion between Nov. 1 to Nov. 30

The Customs Area Controller (CAC) of the unit, Comptroller Garba Mohammed, said this when he conducted newsmen round Customs’ warehouses in Lagos on Wednesday.

According to Mohammed, a total of 185 items were intercepted within the period under review.

Increased IGR: Edo State shifts attention to Tourism

Edo Government says it will explore the state cultural heritage to increase the Internally Generated Revenue (IGR) in all the 18 local government areas.

The Deputy Governor, Mr Philip Shaibu, made the assertion on Monday in Benin while unveiling the logo of Edo Festival of Arts and Culture.

Shaibu, represented by the Commissioner for Arts, Culture and Diaspora, Mr Osaze Osemwengie-Ero, said that there was need for the state government to shift attention from oil and over-dependence on federal allocation.

Access Bank Targets West African Trade Services as Foreign Lenders Exit

Nigeria’s Access Bank plans to grow its trade payment and settlement service over the next five years as foreign lenders faced with increased regulation at home cut their correspondent banking exposure to West Africa.

So-called correspondent banking operations boomed over the last decade as commodity prices spiked and offshore lenders looking to tap into trade flows to Africa extended lines of credit to governments and businesses.

SEC Probe: FG Appoints Acting Director General

The Federal Government on Sunday announced the appointment of Dr Abdul Zubair as acting Director-General, Securities and Exchange Commission (SEC).

Mrs Efe Ebelo of the commission’s Corporate Communications Unit, said in a statement made available to the News Agency of Nigeria that the appointment was with immediate effect.

Ebelo stated that the appointment followed the suspension of Mr Munir Gwarzo, the commission’s boss.

Nigeria’s Seven-Up gets $60m Takeover Offer after Losses

Nigeria’s Seven-Up bottling company has received an offer from its majority shareholder Affelka to buy out minorities for 19.33 billion naira ($60 million), in a takeover deal aimed at restructuring the struggling company.

Privately-held Affelka, the investment firm of the Lebanese El-Khalil family, has offered to acquire 171.5 million shares from minorities at 112.70 naira per share, an 18 percent premium to Thursday’s share price of 95.50 naira.

CBN sells ₦117b in Treasury Bill at Auction

Nigeria raised 117.17 billion naira at a treasury bill auction on Wednesday after allocating almost 90 percent of the debt to longer maturities, traders told Reuters.

The central bank sold 103.07 billion naira of one-year debt at a rate of 15.57 percent, 23.04 billion naira more than it had initially offered to sell in that maturity.

Investors bid as high as 18 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.

EFCC joins Probe of Suspended SEC DG

The suspended director-general of the Securities and Exchange Commission, Mounir Gwarzo, is facing at least two enquiries over his role as helmsman of the commission since 2015.

Apart from the administrative enquiry ordered by the Minister of Finance, Mrs Kemi Adeosun, Gwarzo is also being investigated by the Economic and Financial Crimes Commission.

EFCC wants to unravel the owners of the nine companies that were awarded contracts by the SEC under Gwarzo.

Fitch Rates Nigeria's USD Notes 'B+'

Fitch Ratings has assigned Nigeria's USD1.5 billion 6.500% senior unsecured notes due 28 November 2027 and USD1.5 billion 7.625% senior unsecured notes due 28 November 2047 the final rating of 'B+'.

The final rating replaces the expected rating of 'B+(EXP)' that Fitch assigned on 15 November 2017.

KEY RATING DRIVERS
The expected rating is in line with Nigeria's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'B+' with a Negative Outlook.

RATING SENSITIVITIES

CBN Supplies $288m to four Sectors

Nigeria’s central bank said it had injected $287.89 million into currency market on Friday to meet requests in four industries for dollars, extending efforts to boost liquidity and alleviate shortages.

The four industries targeted are agriculture, airlines, petroleum and raw materials, the Central Bank of Nigeria said in a statement.

The central bank said it would continue to intervene in order to drive growth in the economy and guarantee stability in the currency market.

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