Business News in Brief

Fitch: Nigerian T-Bill Boost to Bank Margins May Be Temporary

Fitch, a rating agency, has said that very high Nigerian Treasury Bill yields are helping banks to maintain their margins, but noted that the boost to net interest income may be temporary, Reuters reports.

It added that banks have been investing heavily in T-Bills since 2H16, boosting interest income and maintaining margins.

DMO sells Bonds at Flat Rate of 15%

Nigeria has sold a five and 10-year debt at a flat rate of 15 percent at an auction on Wednesday to curtail borrowing costs as inflation declines, traders said on Thursday.

The Debt Management Office (DMO) raised a total of 121.13 billion naira, more than the 100 billion naira it wanted to raise.

The DMO sold three billion naira of the 2021 paper and 97 billion naira of the 2027 paper at 15 percent. It allotted 21.13 billion naira of the 10-year debt on a non-competitive basis.

Fraud: Kogi Poly Staff Steal ₦157m via Payroll

The Kogi State Government said it has established a payroll fraud of N157.38million perpetrated by the bursar of the state polytechnic and four others.

All the indicted officers, who have been suspended from office, are all senior staff in the Bursary Department of the Kogi State Polytechnic.

Government said that the money was diverted into the private accounts of the five officers, over three years, from April 2014 to May 2017.

Unilever Nigeria’s Rights Issue Share Sale Oversubscribed

Unilever Nigeria’s 58.85 billion-naira ($187 million) rights issue was 120 percent subscribed, the company said on Wednesday.

The local subsidiary of Anglo-Dutch consumer goods group Unilever, said in a statement it sold 14 new shares for every 27 held at 30 naira each.

The company, which is 60.05 percent owned by Unilever, said four shareholders applied for 50 million shares or more during the offer.

Unilever had said it would take up its rights under the offer to maintain its shareholding and not convert a loan made to the subsidiary into equity.

FG Releases Mobilisation Fees for 2nd Niger Bridge

The Federal government has paid N2 billion mobilization fees to contractors for the commencement of work on the second Niger bridge in Onitsha.

Work on the project would be completed before the end of 2019, Vice President Yemi Osinbajo has assured Nigerians.

Osinbajo was in Onitsha on Friday at the official flag-off campaign of Mr Tony Nwoye, the All Progressives Congress (APC) governorship candidate in Anambra.

Osinbajo said that all projects embarked on by the Federal Government would be completed without exception including rail and federal roads.

Nigerian Lenders Pick Barclays to Find New Investors for 9mobile –Sources

Nigerian lenders have picked Barclays to try to find new investors for debt-laden 9mobile, two banking sources said on Thursday.

Barclays has started work on the mandate and is in the process of setting up a database for prospective investors to conduct due diligence, they said.

Banking sources had previously said Citigroup and Standard Bank were in the running for the role.

Fiscal Index: Rivers, Lagos, Ogun, Kano Lead Ranking, Osun Worst

Many Nigerian states will have to rev up their internally generated income and cut both expenditure and debt, to survive the next few years, a new Fiscal Sustainability Index published by BudgIT Nigeria, a budget transparency advocacy group has said.

The report styled ‘State of the States,’ ranks all the 36 states in Nigeria, with Rivers, Lagos, Ogun and Kano the leaders.

Ekiti and neighbouring Osun emerge at the bottom of the ranking, joined by Gombe and Plateau to make the last four.

SEC Suspends Trading in Oando Shares

The Securities and Exchange Commission (SEC) has directed the Nigerian Stock Exchange (NSE) to suspend trading in the shares of Oando Plc effective from Wednesday.

The suspension which will last till 20 October is a prelude to the technical suspension of the company shares.

A full suspension is the halt of trading activities in a listed security for a period.

GTBank Records ₦125.58b Profit in Third Quarter

Guaranty Trust Bank (GTB) Plc on Wednesday posted profit of N125.58 billion for the third quarter ended Sept. 30, 2017.

This is according to the bank’s third quarter result released by the Nigerian Stock Exchange (NSE), the News Agency of Nigeria reports.

The report showed that the profit represented a growth of N8.49 billion or 7.21 per cent as against N117.08 billion achieved in the corresponding period of 2016.

Its profit before tax rose to N150.03 billion from N137.99 billion recorded in the preceding period of 2016.

NIPOST to Introduce Banking Service

The Nigeria Postal Service (NIPOST) will soon introduce agency banking service in addition to the re-introduction of money order to its clients.

Mr Godwill Magulike, the District Manager of NIPOST in Kwara state, told the News Agency of Nigeria (NAN) in Ilorin recently that the introduction of agency banking will enable Nigerians send money abroad beside its courier services.

He said that the agency had introduced series of products aimed at reviving the postal system and increasing patronage.