Business News in Brief

Guinness Nigeria's $126m Share Sale Oversubscribed

Guinness Nigeria’s 39.70 billion naira ($126 mln) share sale to existing shareholders was 116 percent subscribed, the company said on Wednesday.

The brewer, the local unit of the world’s leading spirit maker Diageo, said in a statement it sold five new shares from the company to shareholders for every 11 held, at 58 naira each, Reuters reports.

The company, which is 54 percent owned by Diageo, said two shareholders applied for 50 million shares and above during the rights issue.

Emerging Market Inflows Fall to Lowest since January –IIF

Foreign investors cut capital flows to emerging market debt and equities in September for the second straight month, reducing inflows to $14.5 billion as caution about the U.S. Federal Reserve’s path of interest rate hikes has slowed flows, a survey from the Institute of International Finance showed on Tuesday.

The estimate marks the lowest level of inflows since January’s $13.2 billion reading and is a little more than $1 billion lower than August’s levels, Reuters reports.

State Govt Revokes Tourist Site Contract

The Niger Government has revoked the N70 million contract agreement with Shelter Suit to construct a hotel at Gurara tourist site.

Mr Daniel Kolo, the state Commissioner for Culture and Tourism, disclosed this at a press conference in Minna on Thursday.

Kolo said that Gov. Abubakar Bello gave approval for the revocation of the contract at the weekly State Executive Council meeting.

Growth and Opportunity Act: Nigeria can Generate 4m Jobs Annually –Expert

Nigeria can generate four million jobs annually taking advantage of the Africa Growth and Opportunity Act (AGOA) to invest on Micro Small and Micro Enterprises (MSMEs).

Mr. Fred Oladehinde, the President of the Foundation for Democracy in Africa, told the News Agency of Nigeria that AGOA’s plan was to reduce unemployment through creation of 20 million jobs in Africa annually

DMO Welcomes Oversubscribed Debut Sovereign Sukuk Issue

Nigeria’s debut 100 billion naira sovereign sukuk issue launched last week was more than 5.8 percent oversubscribed, the Debt Management Office said on Wednesday, suggesting it may tap this demand more to help fund its budget.

Nigeria has a growing consumer and corporate banking sectors and is home to the largest Islamic population in sub-Saharan Africa, with Muslims accounting for about half of its population of 180 million, Reuters reports.

Kogi Turns Attention to Tourism

The Kogi state Commissioner for Information, Culture and Tourism, Mohammed Imam Awal has reiterated the state government’s commitment to revolutionise its tourism sector for economy prosperity.

Imam made this known in a telephone interview with the News Agency of Nigeria on Wednesday in Abuja.

He maintained that the development of tourism is capital intensive, but added, “we are doing a lot; we work side by side with other components like environment and infrastructure.

GE Nears Sale of its Industrial Unit to ABB

General Electric Co is nearing a deal to sell its industrial solutions unit to Swiss engineering company ABB Ltd in a deal valued at $2.5 billion to $3 billion, Bloomberg reported, citing people with knowledge of the matter.

The companies are likely to announce an agreement by next week, the report said on Friday.

A company spokesman for ABB said the company does not “comment on market rumours.” GE was not immediately available for comment.

FX market in doldrums as funds offer dollars at premium

Offshore funds in Nigeria offered on Wednesday to sell the dollar at close to its black market rate, traders told Reuters, worsening a liquidity lull on the foreign exchange market.

The funds, which shifted dollars into the market last week to buy naira treasury bills, offered to sell the U.S. currency at 365 naira, close to the black market rate of 367. Local banks were bidding to buy at just 359.

The naira was quoted at 305.85 on the official market.

Customs Targets more Revenue at Kaduna Airport

The Assistant Comptroller-General, Nigeria Customs Service, Zone B, Kaduna, Aminu Dahiru, has said that the commencement of international flight operation from Kaduna Airport would boost revenue generation of the zonal command.

Dahiru said in an interview with the News Agency of Nigeria on Tuesday in Kaduna that it was a good development for the customs service.

“It is good that Ethiopian Airlines has started operation from Kaduna; though the operation hasn’t taken long, but we hope in the near future they will bring in cargo.

S&P Affirms FG Ratings at 'B/B' Stable Outlook

Standard and Poors (S&P), a rating agency, has affirmed the Federal Republic of Nigeria ratings at ‘B/B’; outlook stable, Reuters reports.

S&P said Nigeria’s stable outlook signals assessment that oil sector improvements will support higher economic growth, fiscal revenues, among other things.

The rating firm said Nigeria’s stable outlook will also support higher current account receipts over next 12 months; help increase foreign currency supply, and keep current account in balance.