Naira closes at 390/dollar as CBN sells $100m

The naira depreciated from 388 per United States dollar on Wednesday to 390/dollar on Thursday as the Central Bank of Nigeria continued to intervene in the foreign exchange market to boost the local currency.

The local unit has been hovering between 385/dollar and 390/dollar in the last one week.

Currency and financial experts have said the local currency may not appreciate above 380/dollar despite the spate of dollar sale by the central bank.

The CBN on Thursday sold $100m to authorised dealers.

The regulator in a statement said the sale was meant to meet the requests of wholesale customers at the Forex auction in the inter-bank wholesale window.

The Acting Director, Corporate Communications Department at the CBN, Isaac Okorafor, who confirmed this, said no intervention was made in the retail window on Thursday.

He, however, said the bank had continued its weekly sale of forex to the Bureau de Change segment to meet the needs of low-end users.

Furthermore, he said the CBN had observed that quite a good number of dealers were adhering to the forex guidelines.

Nevertheless, he said the CBN would continue to monitor the activities of authorised dealers to ensure that no outfit or individual circumvents the laid down forex rules.

While urging all concerned to put the Nigerian economy first, he reiterated that the CBN was determined to guarantee the international value of the naira.

SOURCE:http://punchng.com/naira-closes-at-390dollar-as-cbn-sells-100m/

Nigeria, U.S. trade hits $1.36b in two months

Nigeria’s trade with the United States (U.S.) rose by 70.44 per cent from $799.93 million in January and to $1.36 billion in February, according to the latest U.S. Census Bureau data.

Data obtained from the Fact Sheet on Nigeria – U.S. Relations, showed that petroleum products dominated the U.S. import from Nigeria during the period in review. For instance, U.S. crude oil import from Nigeria stood at $936.65 million while gasoline import was $83.43 million.

Petroleum gases, other gaseous hydrocarbons totaled $16.94 million. The previous year, there were no imports in this category. Also, nitrogenous fertilizers totaled $16.66 million, but there were no imports in this category the previous year,.

According to the data, through February, 22 Customs districts posted trade surpluses with Nigeria while 13 had deficits. This compares with 25 surpluses and nine deficits for the same period a year ago.

On the other hand, the value of the top five categories of U.S. imports from Nigeria – oil; gasoline, other fuels; Petroleum gases, other gaseous hydrocarbons; nitrogenous fertilisers; and cocoa beans, whole or broken, raw or roasted 1801, accounted for 98.64 percent of all inbound shipments.

“The United States and Nigeria have a bilateral trade and investment framework agreement. In January 2016, U.S. Secretary of Commerce Penny Pritzker, visited Nigeria on a fact-finding mission with senior U.S. business executives who comprised the Advisory Council on Doing Business in Africa. The Council’s visit underscored the broad U.S. commitment by both government and the private sector to advance economic engagement with Nigeria,” it added.

The total U.S. trade with the world increased to $592.18 billion, up 6.44 percent compared to the same period last year. United States exports climbed 6.68 per cent to $237.05 billion; imports climbed 6.28 percent to $355.13 billion.

The nation’s top five countries so far this year, by value, are China; Canada; Mexico; Japan and Germany. The overall trade deficit was $118.08 billion, up compared to the same period of last year when the deficit was $111.94 billion.

SOURCE: https://guardian.ng/business-services/nigeria-u-s-trade-hits-1-36b-in-two-months/

Enyeama free to return to Super Eagles, says NFF

The Nigeria Football Federation (NFF), has expressed dismay over a recent statement made by former Super Eagles goal keeper, Vincent Enyeama, that he is not ready to grant the request by coach Gernot Rohr to return to the Super Eagles squad because of some issues he had with the NFF.

Speaking with The Guardian in Lagos, NFF Spokesman, Ademola Olajire, stated that the federation had never at any point had problem with Enyeama, adding that NFF was not aware if Enyeama is nursing any form of grievances against the board.

He noted that Rohr’s decision to consider invitation to Enyeama ahead of the 2019 AFCON and 2018 World Cup qualifiers is a welcome development for progress of the team.

Olajire further stated that the body had given Rohr the nod to invite any player he wishes can deliver for the Super Eagles. But he declared that Enyeama’s comments against the NFF was false, added that the federation was working round the clock to give all necessary assistance to Rohr to transform the team.

“NFF has never had any problem with Enyeama and I don’t understand why he made such statement that the NFF is the only reason he can’t return to the Eagles. The only issue I can recall that lead to his retirement from the team, was when he had problems with former coach Sunday Oliseh. Enyeama or any player that Rohr needs to make the Eagles fly is welcomed to the national team.

“I want to add that the issues of Rohr’s salary has been kept secret since he assumed working with the federation. We are in cordial relationship with him, and any information you get regarding payment of Rohr salaries is false because the NFF stand is not to make it public”

SOURCE: https://guardian.ng/sport/enyeama-free-to-return-to-super-eagles-says-nff/

ICAN accredits 32 tertiary institutions, centres

The Institute of Chartered Accountants of Nigeria has accredited no fewer than 11 tertiary institutions and 21 tuition houses.

The accounting body said the move was in line with its statutory mandate of setting standards and regulating the practice of the accountancy profession in the country.

The President, ICAN, Deacon Titus Soetan, during the presentation of certificates to the beneficiaries at the institute’s office in Lagos, said the need to initiate quality control and improve the level of pass rate of students in its various accounting examinations necessitated the exercise.

               

Soetan pointed out that the accreditation reaffirmed the institute’s commitment to high technical standards, and would also facilitate the choice of academic institutions/tuition houses by students in their quest for accounting knowledge.

This move, he said, would further enhance professionalism in the accounting profession and align the quality of knowledge dissemination by the institutions to global standards.

The ICAN president said, “As a professional body, we are committed to technical excellence. The institute proactively began to accredit institutions of higher learning and tuition houses when it realised the need to initiate quality control and improve the level of pass rate of students in its various examinations.

SOURCE: http://punchng.com/ican-accredits-32-tertiary-institutions-centres/

How to invest in FGN savings bond

The FGN savings bond was introduced into the market on March 7, 2017 as a result of market restructuring that saw the upward review of the minimum subscription for treasury bills and bonds in the primary market from N10,000 to N50m. This means that investors or group of investors that cannot come up with the minimum subscription of N50m will have to buy from the secondary market, or subscribe to the FGN savings bonds that have much lower minimum subscription requirements of N5,000 minimum.

Before I proceed further, I want to make further clarifications regarding some terms based on questions and feedback I have received so far. The primary market is where you buy directly from the issuer. It is like buying drinks directly from the manufacturer (wholesale). You do that by going through your bank, stock broker or discount house. The secondary market is where you buy from someone who bought from the primary market and wants to re-sell (retail). It is like going to a supermarket to buy drinks – you are buying from someone who bought from the manufacturer.

Brokers usually deal with both primary market and secondary market transactions. That means you do not have to look for another broker when you want to trade in the secondary market, unless you have reasons to. For example, the broker also has a minimum amount they sell to the public based on who their target clients are. It is possible that the minimum amount the broker is ready to accept is too high for you. In that case, you need to look for another broker that will accept the amount you have. If you still cannot find one, then you may have to save up until your money is enough. There are investment products you can use to save monthly until you arrive at the amount you want.

Investing in FGN savings bond

Investing in FGN savings bond is as simple as visiting one of the stock broking firms accredited by the Debt Management Office and fill out the required forms. The DMO is responsible for issuing bonds on behalf of the Federal Government. You can download the current list by visiting the DMO website, www.dmo.gov.ng. You will be required by the stockbroker to open an account with them so that you can deal through them (if you do not have a stockbroker who is already is accredited). Whether you end up opening the account or not, you will be better informed than someone sitting at home asking questions but doing nothing. Taking that first step seems to be the biggest challenge people have.

Investing in fixed income securities is virtually risk-free, so there is no point analysing endlessly an investment that carries no risk. It does not make sense. What should concern you is how to enter, how to exit and how investing in bonds fits into your financial goals and plan. You must have a reason for wanting to invest in bonds. Once you are clear, just step forward and take action. Any additional questions you may have will be answered by the broker.

FGN savings bond is issued by the DMO on behalf of the Federal Government of Nigeria, targeted at low-income earners to encourage savings and to earn income (interest) at competitive rates. The interest earned on FGN savings bond is tax free. This means you can grow your money faster.

Interest earned from FGN savings bond is paid quarterly – every three months – into your account as indicated in the submitted subscription form. The interest is calculated per annum (year). This means if you invest N100,000 in FGN savings bond at 13 per cent, you will be paid N13,000 per year. That means every three months, you will get a credit alert of N3,250, which adds up to N13,000 per year. If you think the interest is too small, you need to increase your investment. That may require you to start saving more and consistently rather than spend on things that will not improve your future. If you are focused, you can keep growing your money to the point that your interest is enough to feed your family.

Minimum subscription for FGN savings bond is N5,000 with a maximum of N50m. Some brokers may not accept N5,000 as stated earlier. You will be told the minimum they accept. If you do not have enough money, you can check with another broker. You can simply call them to find out rather than go door to door. Also, it is better to save up your money to a reasonable amount before you invest in bonds because if the interest is too small, you will be discouraged.

The tenor of FGN savings bond is two to three years. The interest rate is determined by the issuer and is usually stated in the offer for subscription adverts. Offer for subscription is open to the public and it takes place every month, and usually lasts for a week. During that time, you can visit your stockbroker to fill out your subscription form and fund your account. After close of subscription, you will be notified if your subscription was successful. You can decide to take part in every subscription or add your money together and subscribe once in a while. It is important you have a goal you are working towards so that you invest with a plan and focus.

If you want your money to grow faster, you can add your interest to your savings account and use it to buy another bond later, rather than spending the money. If you grow your interest big enough, it becomes another source of income you can fall back on in future, in the event you lose your job or your pension income is not enough to support you.

Nigeria’s revenue can’t sustain interest payment on debt – W’Bank

Although Nigeria’s total current debt is relatively low compared to the Gross Domestic Product, the interest rate payment is not sustainable by current revenues, the World Bank has said.

Senior Economist at World Bank office in Nigeria, Yue Man Lee, said this in Abuja on Wednesday on the sideline of the release of the 15th edition of Africa’s Pulse, an analysis of issues shaping the continent’s economic future.

For the interest payment to be sustainable, according to Lee, the country either has to increase its revenues or work towards balancing the debt profile to make way for more foreign debt rather than allow the continued dominance of local debt with high interest rates.

                     

She said, “Nigeria’s debt to GDP ratio is relatively low. What is of concern is the ratio of interest payment to revenue. That is what is concerning. This reflects the fact that there has been a massive drop in revenues because of the drop in oil revenues.

“There are two main strategies to reduce this debt burden. One is to increase the revenues. Here, in order not to be vulnerable to the volatility of the oil sector, the critical thing is to increase the non-oil revenues like the VAT, the income taxes and the excises outside of oil. This is something we have been discussing with the government about.”

Lee added, “The other area in terms of interest payment is to look at the debt profile. Right now, most of the debt is domestic debt – short term domestic debt – and so, the government has already expressed the strategy to move towards external longer-term debt. You have seen them issuing Euro-bonds successfully as part of that strategy.

“The key thing for us in terms of sustainability of the debt profile is raising revenues. That is just the key thing.”

Lee also spoke on the nation’s continuing foreign exchange crisis, saying that further liberalization could lead to depreciation of the naira, but predicted recovery after a short while.

SOURCE: http://punchng.com/interest-on-nigerias-debt-not-sustainable-by-revenues-wbank/

ISPON seeks N100b bailout for software industry

The President, Institute of Software Practitioners of Nigeria (ISON), Olorogun James Emadoye has advised the Federal Government to declare a state of emergency on the software sector. He also wants the government to establish a N100billion litmus package as bailout for what he called ‘Strategic National Software Development Ecosystem.’

Emadoye who spoke during this year’s President’s Dinner with: Software as a tool for national transformation as theme, in Lagos, said Nigeria is ripe for a strategic legislation on software if the country must change the tide that has turned it into a digital colony of the 21st century.

He said: “You may have heard that the 2016 budget had well over N15billion provision for ‘Computer Software Acquisitions’. ISPON was excited when it came across this figure in the approved budget and took the initiative to inform Ministries, Departments and Agencies (MDAs) on the need to patronize software Nigeria in the real meaning of software Nigeria and not foreign software that are sold by installation and customizing agents in Nigeria. ISPON believes that such effort at the use of made-in-Nigeria software will create millions of jobs for Nigerians and set the country on the path of self-sufficiency in software. “If 70 per cent of the over N15billion had been spent for software in Nigeria, the impact would have been felt in all facets of the economy – with ability to generate many billions of naira along the value chain.”

He said Nigerians are smart people and should be able to serve their needs in software, earn foreign exchange from software sales and conserve unnecessary wasteful spending of the scarce foreign exchange currently earned from oil. He added that the overall goal is increasing earnings and contributing at least, nine per cent to the gross domestic product (GDP) from locally produced software products and services.

“We therefore call on the government of President Muhammadu Buhari to support, sustain and accelerate intervention in this sector by passing special legislation to ensure that all MDA use locally produce software for all their computerization efforts; ensuring that NOTAP (National Office for Technology Acquisition & Promotion) work and collaborate with NITDA (National Information Technology Development Agency) and ISPON before approving software payment from our scarce dollar resources; ensuring that CBN (Central Bank of Nigeria) collaborate with NITDA and ISPON before allowing transfer for all software purchases,” he said.

Others are ensuring that 30 per cent of all software payment for foreign products approved for payment through the collaboration of NITDA, ISPON, CBN and NOTAP is retained in Nigeria for the development of local capacity in Nigeria; .mandating the Bank of Industry (BoI) to expedite actions to establish the N5billion Software Development Fund of which ISPON has already submitted position paper and start disbursing to deserving companies and software producers immediately for the development of the sector; and mandating all the telcos, through Nigerian Communications Commission (NCC) to make available to software producers codes, Application Programming Interface (API) and other programmes for building software for the telecoms industry.

SOURCE: http://thenationonlineng.net/ispon-seeks-n100b-bailout-software-industry/