Author: Marketforces Africa

Five consecutive quarters growth fails to rebuild purchasing power

FBNQuest, one of the leading merchant banks, has estimated average Nigerians spending capacity at $50 per month. In its recent analysis on the economy, FBNQuest is of the view that inflationary pressure has contributed to the subdued spending, say food inflation has remained high. Analysts said that although Nigeria’s economy has posted growth in the past five quarters, household wallets have not necessarily been re-built and so purchasing power remains low. In 2018, gross domestic products (GDP) per capita was US$1,930. However, this could be misleading given the skewed wealth distribution in the country. “The average Nigerians spending capacity…

CBN may not revisit FX policy in the near term The nation’s external reserve went up by $2.1 billion in the month of March on the back of stability in the global price of oil. For most part of the month, oil price stayed at around $60 per barrel with production volume moving below budget. The nation plans to be producing minimum of 2.3 million barrels of oil per day to finance fiscal year 2019 budget. However, inconsistence around supply chain has consistently against the target as the nation’s daily production hovering below 2 million barrels of oil per day.…

  The minister of Finance, Zainab Ahmed, has said that more funding will be given to the Nigeria Sovereign Investment Authority, from the country’s oil windfall savings. She was speaking on the sidelines of the IMF’s spring meetings in Washington DC. The excess crude account contains monies from Nigeria’s oil windfall savings. One billion dollars seed capital from the account was used to start the Nigeria Sovereign Investment authority in two thousand and eleven. The agency has been involved in managing and investing these funds for the country. Nigeria’s finance minister now says government intends to improve on the investment authority’s…

 For Zenith and GTB Plc, making profit has become a culture, there is no bank that is as profitable…

Fiscal, Monetary authorities converging policy to reduce debt cost

“We advocate a hike in tax rate”, FBNQuest

Ecobank Transnational Incorporation has injected $64 million into its Nigerian unit in a bid to raise its capital ratio above the central bank’s regulatory minimum of 16 percent, the Africa-focused bank said on Monday. At the CBN official rate, this translate to about N20 billion at the time when capital base stands at N25 billion. The move comes after a decision in November to adopt a different exchange rate for the naira to the one supported by the central bank affected its capital ratio. In the recent time, the Central Bank of Nigeria (CBN) disclosed that the Capital Adequacy Ratio…

First Bank of Nigeria Holdings has declared N59.7 billion profit after tax, its audited result made available to the Nigerian Stock Exchange, NSE, as shown. FBNH has N279.983 billion market capitalisation as its shares traded at N7.50. The performance which analysts have commended came strong as the holding company raised year on year profit take by 58.23 percent from its continuing operations. The holdings co plans to pay 26 kobo per its share in 2018 as against 25 kobo in 2017. At the headline, FBNH recorded N583.477 billion as its gross earnings in the financial year 2018 result compare…

Access Bank Plc: Is it a good time to anticipate