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Showing posts with label Business News. Show all posts
Showing posts with label Business News. Show all posts

Nigeria President Muhammadu Buhari Sends Delegation to Ghana to Resolve Nigerian Traders’ Conflict with Authorities

       

 President Muhammadu Buhari has directed that a ministerial delegation be sent to Ghana to resolve the lingering conflict between Nigerian Traders and the Ghanaian authorities.


The delegation, to be led by the Minister of Industry, Trade and Investment, Mr. Niyi Adebayo, is made up of relevant stakeholders who will dialogue with Ghanaian authorities with a view to finding a solution to the problem.

 

At a meeting convened by the minister with the stakeholders Monday, it was resolved that the delegation led by the Minister should undertake the visit between May 31 and June 1, 2021.


According to a statement by the minister’s media aide, Mr. Ifedayo Sayo, those present at the meeting included the Minister of State, Federal Ministry of Foreign Affairs, Ambassador Zubairu Dada; the Permanent Secretary, Ministry of Industry, Trade and Investment, Dr. Nasir Sani-Gwarzo and the Executive Secretary, Nigerian Investment Promotion Commission (NIPC), Ms Yewande Sadiku.


Others include, Chief Executive, Nigerian Diaspora Commission, Hon. Abike Dabiri and President of National Association of Nigerian Traders (NANTS), Dr. Ken Ukaoha.

Ethereum’s 27-Year-Old Co-Creator Vitalik Buterin Is Now The World’s Youngest Crypto Billionaire

 Vitalik Buterin, who spearheaded the launch of the Ethereum blockchain in 2015, has become the world’s youngest crypto billionaire at age 27. Ethereum’s cryptocurrency, ether, surged past $3,000 for the first time early Monday morning, marking a 325% rise since the beginning of this year.


 Vitalik Buterin, co-founder of Ethereum


Buterin’s ether address, which he disclosed in October 2018 as his main ether wallet, currently holds 333,520 ETH, worth $1.09 billion at the ether price of $3,278 at 1:30 p.m. ET on Monday

The ether cryptocurrency has a market capitalization of $376 billion, second only to bitcoin’s $1.08 trillion. Ether’s value has surged since the beginning of the year, largely due to the rising popularity of decentralized finance (DeFi) applications that are aiming to replace traditional financial intermediaries like banks and insurance companies. According to the data aggregator DeFi Pulse, over $72 billion is now locked in DeFi protocols, many of which are built on top of the Ethereum blockchain.


However, Ethereum is facing tough competition from Binance Smart Chain (BSC), the blockchain infrastructure developed by the world’s largest cryptocurrency exchange, which has been processing an average of more than 8 million transactions on a daily basis since late April (Ethereum is just over 1 million). Other prominent blockchains include Algorand, Cardano, Polkadot and Solana.   


Buterin was reportedly born in 1994 in the town of Kolomna, just outside of Moscow. He later moved to Canada with his family and was raised in Toronto. Prior to launching Ethereum, in 2012 when he was 18, Buterin cofounded (and wrote for) Bitcoin Magazine with Mihai Alisie, who later joined Buterin in founding Ethereum. In 2014, Buterin was awarded the prestigious Thiel Fellowship, offering $100,000 for young people under the age of 23 to pursue interests outside of academia (instead of going to college or university).

 The fellowship is funded by billionaire Peter Thiel, an early investor in Facebook and a graduate of Stanford University. A year later, the Russian-Canadian entrepreneur and the rest of the developing team launched Frontier, what they called the “barebone implementation of the Ethereum project.”

NIGERIA CENTRAL BANK GOVERNOR’S STATEMENT ON THE PURPORTED MANAGEMENT CHANGE AT THE FIRST BANK OF NIGERIA LTD

 NIGERIA CENTRAL BANK GOVERNOR’S STATEMENT ON THE PURPORTED MANAGEMENT CHANGE AT THE FIRST BANK OF NIGERIA LTD


1.0 Good afternoon ladies and gentlemen.


2.0 The media has been awash with commentaries on the purported management changes at First Bank of Nigeria Ltd (FBN) and the related regulatory inquiry by the Central Bank of Nigeria (CBN) to the Board of First Bank of Nigeria Limited. It has therefore become necessary for me to address the public to clear any misconceptions.


3.0 Ordinarily the board is vested with the authority to make changes in the management team subject to CBN approval. However, the CBN considers itself a key stakeholder in management changes involving FBN due to the forbearances and close monitoring by the Bank over the last 5 years aimed at stemming the slide in the going concern status of the bank. It was therefore surprising for the CBN to learn through media reports that the board of directors of FBN, a systemically important bank under regulatory forbearance regime had effected sweeping changes in executive management without engagement and/or prior notice to the regulatory authorities. The action by the board of FBN sends a negative signal to the market on the stability of leadership on the board and management and it is in light of the foregoing that the CBN queried the board of directors on the unfortunate developments at the bank.


4.0 As you may be aware, FBN is one of the systemically important banks in the Nigerian banking sector given its historical significance, balance sheet size, large customer base and high level of interconnectedness with other financial service providers, amongst others. By our last assessment, FBN has over 31m customers, with deposit base of N4.2trn, shareholders funds of N618bn and NIBSS instant payment (NIP) processing capacity of 22% of the industry. To us at the CBN, not only is it imperative to protect the minority shareholders, that have no voice to air their views, also important, is the protection of the over 31m customers of the bank who see FBN as a safe haven for their hard-earned savings.


5.0 The bank maintained healthy operations up until 2016 financial year when the CBN’s target examination revealed that the bank was in grave financial condition with its capital adequacy ratio (CAR) and non-performing loans ratio (NPL) substantially breaching acceptable prudential standards.


6.0 The problems at the bank were attributed to bad credit decisions, significant and non-performing insider loans and poor corporate governance practices. The shareholders of the bank and FBN Holding Plc also lacked the capacity to recapitalize the bank to minimum requirements. This conclusions arose from various entreaties by the CBN to them to recapitalize.


7.0 The CBN stepped in to stabilize the bank in its quest to maintain financial stability, especially given FBN’s systemic importance as enumerated earlier. Regulatory action taken by the CBN in this regard included:


i. Change of management team under the CBN’s supervision with the appointment of a new Managing Director/ Chief Executive Office in January 2016.


ii. Grant of the regulatory forbearances to enable the bank work out its non-performing loans through provision for write off of at least N150b from its earning for four consecutive years.


iii. Grant of concession to insider borrower to restructure their non-performing credit facilities under very stringent conditions


iv. Renewal of the forbearances on a yearly basis between 2016 and 2020 following thorough monitoring of progress towards exiting from the forbearance measures


8.0 The measures had yielded the expected results as the financial condition of FBN improved progressively between 2016 when the forbearance was initially granted to the current financial year. For instance, profitability, liquidity and CAR improved whilst NPL reduced significantly.


9.0 Notwithstanding the significant improvement in the bank’s financial condition with positive trajectory of financial soundness indicators, the insider related facilities remained problematic.


10.0 The insiders who took loans in the bank, with controlling influence on the board of directors, failed to adhere to the terms for the restructuring of their credit facilities which contributed to the poor financial state of the bank. The CBN’s recent target examination as at December 31, 2020 revealed that insider loans were materially non-compliant with restructure terms (e.g. non perfection of lien on shares/collateral arrangements) for over 3 years despite several regulatory reminders. The bank has not also divested its non-permissible holdings in non-financial entities in line with regulatory directives


11.0 Following further review of the situation and in order to preserve stability of the bank, so as to protect minority shareholders and depositors, the Management of the CBN in line with its powers under BOFIA 2020 has approved and hereby directs:


i. Immediate removal of the all directors of FBN Ltd and FBN Holdings Plc


ii. The appointment of the following persons as directors in FBN Ltd and FBN Holdings Plc


Holdco


1.Chairman – Remi Babalola


2.Dr. Fatade Abiodun Oluwole


3.Kofo Dosekun


4.Remi Lasaki


5.Dr Alimi Abdulrasaq


6.Ahmed Modibbo


7.Khalifa Imam


8.Sir Peter Aliogo


9.UK Eke – Managing Director


Bank


1. Chairman – Tunde Hassan-Odukale


2. Tokunbo Martins


3. Uche Nwokedi


4. Adekunle Sonola


5. Isioma Ogodazi


6. Ebenezer Olufowose


7. Ishaya Elijah B. Dodo


8. Sola Adeduntan – Managing Director


9. Gbenga Shobo – Deputy Managing Director


10. Remi Oni – Executive Director


11. Abdullahi Ibrahim – Executive Director


12.0 The CBN hereby reassures the depositors, creditors and other stakeholders of the bank of its commitment to ensure the stability of the financial system. There is therefore no cause for panic amongst the banking public, given that the actions being taken are meant to strengthen the bank and position it as a banking industry giant.

Federal Government of Nigeria bans importation of refined sugar from free trade zones

 The Federal Government has prohibited the importation of and its derivatives from the country’s free trade zones (FTZs). This development follows a dispute among Dangote Industries Limited, BUA Group, and Flour Mills of Nigeria. In a joint letter to Niyi Adebayo, minister of industry, trade and investment, Dangote Industries Limited and Flour Mills of Nigeria had claimed that BUA’s sugar refinery poses a threat to the local sugar industry and undermines the Nigerian sugar master plan (NSMP).

                                          

However, BUA fired back, saying Dangote and John Coumantaros, chairman of Flour Mills of Nigeria, are calling to question the “authority of the president’s power and the diligence of the trade ministry. The minister issued the ban in order to protect national interest and achieve the goals of the NSMP, a policy road map for sugar production.This was made known in a letter by the Nigerian Ports Authority (NPA) to one of the terminal operators at the Lagos Ports Complex (LPC), Apapa, Lagos.


The letter, dated April 8, was signed by Buba Jubril on behalf of the port manager, Lagos Ports Complex.

 

 “It has recently come to our notice that due to the recent location of a sugar refinery in a free trade zone, refined sugar is being imported into the Nigerian Customs territory under the concession granted to enterprises in the free trade zones to export 100 per cent of their output to the Nigerian Customs territory, and this is real potential threat to the goals of the Nigerian Sugar Master Plan (NSMP),” the letter read.



The Nigerian Investment Promotion Commission (NIPC) has reported $8.41 billion new investment announcements in Nigeria in the first quarter of 2021

 The Nigerian Investment Promotion Commission (NIPC) has reported $8.41 billion new investment announcements in Nigeria in the first quarter of 2021 



The manufacturing sector attracted 60 percent of investments, reflecting the gradual return of investors’ confidence after the COVID-19-induced decline.


The Q1 2021 investment profile was 75 percent more than the $4.81 billion reported in the same period in 2020 and 8.38 percent higher than the $7.76 billion recorded in the previous quarter (Q4 2020).


In its “report of investment announcements in Nigeria (January – March 2021)” , NIPC also noted that Balyesa and Delta States emerged top investment destinations during the period, followed by Akwa Ibom and Lagos States.


The report stated: “Bayelsa State received the largest share of the announcements with $3.6 billion in mining and quarrying. Delta State recorded $2.94 billion worth of announcements in seaport construction and power transmission, Akwa Ibom State had $1.4 billion announced in mining and quarrying, and Lagos State with announcements totalling US$0.26 billion in finance, insurance, and manufacturing.”


The report revealed that the leading four destinations accounted for 97 percent of the total investments announced as against 56 percent in the corresponding period in 2020.


By sector, manufacturing received the largest investment accounting for 60 percent at $5.08 billion, followed by construction at $2.90 billion (34 percent), electricity at $0.26 billion (3 percent), agriculture $0.11 billion (1 percent), and others at $0.07 billion (1 percent).


Domestic investors accounted for 35 percent of the announcements at $2.95 billion. Other sources were Morocco $1.40 billion, United Kingdom $0.24 billion, and United States $0.08 billion.


In terms of volume, NIPC said Nigeria received 15 projects across eight states compared to Q1 2020 with 19 projects across 14 states including the Federal Capital Territory (FCT).


The Commission, however, said that its report may not contain exhaustive information on all investment announcements in Nigeria during the period.


NIPC also noted that investment announcements do not necessarily translate to actual investment inflow. For instance, out of a total investment announcements of $16.74 billion reported in 2020, only $2.6 billion actual foreign direct investment (FDI) inflow was recorded.


“The gaps between announcements and actual investments demonstrate investment potential announcements and actual investment potential.


“A more proactive all-of-government approach to investor support, across federal and state governments is required to convert more announcements to actual investments,” NIPC stated.

French far-right leader Marine Le Pen backs retired generals’ hint at military uprising in France

               Far-right leader Marine Le Pen said France is at risk of a “civil war” as she prepares to tackle President Emmanuel Macron in...

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