TOP GAINERS (As at 29 Jul 2010):-
GlaxoSmith.(N31.50) (5%),
7Up(N49.35) (5%),
Unilever(N25.20) (5%),
NBC(N34.17) (4.97%),
AshakaCem(N20.10) (4.96%),
Guinness(N168.96) (4.29%),
UACN(N45.00) (2.27%),
Nestle(N364.00) (2.24%),
BCC(N64.01) (1.60%),
Flour Mills(N76.00) (1.33%)
Friday, July 30, 2010
Business News
BUSINESS - Money Fri, 30 Jul 2010
Corporate governance: CBN to screen shareholders, directors of banksBy Nike Popoola
To address the challenges of weak corporate governance, the Central Bank of Nigeria has said...
N4bn CBN succour for Edo StateBy James Azania, Benin
The Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, on Thursday, brought smiles to...
CBN urged to address cross-boarder expansionBy Agency Reporter
Accountants from the Eastern part of the country have urged the Central Bank of Nigeria to ...
Fidelity Bank earns N34bn in six monthsBy Everest Amaefule, Abuja
Fidelity Bank Plc on Thursday at its Annual General Meeting in Abuja announced a gross ...
Standard Standard Chartered migrates to Chip cardsBy Agency Reporter
Standard Chartered Bank Nigeria has commenced the process of replacing all its magnetic ...
Market abuse: SEC may release list todayBy Gbenga Agbana
Following the pressures mounted on the management of the Securities and Exchange ...
AMCON: Investors renew interest in rescued banks’ stocksBy Ademola Alawiye
Following the signing of the Asset Management Corporation of Nigeria’s Bill by President ...
Corporate governance: CBN to screen shareholders, directors of banksBy Nike Popoola
To address the challenges of weak corporate governance, the Central Bank of Nigeria has said...
N4bn CBN succour for Edo StateBy James Azania, Benin
The Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, on Thursday, brought smiles to...
CBN urged to address cross-boarder expansionBy Agency Reporter
Accountants from the Eastern part of the country have urged the Central Bank of Nigeria to ...
Fidelity Bank earns N34bn in six monthsBy Everest Amaefule, Abuja
Fidelity Bank Plc on Thursday at its Annual General Meeting in Abuja announced a gross ...
Standard Standard Chartered migrates to Chip cardsBy Agency Reporter
Standard Chartered Bank Nigeria has commenced the process of replacing all its magnetic ...
Market abuse: SEC may release list todayBy Gbenga Agbana
Following the pressures mounted on the management of the Securities and Exchange ...
AMCON: Investors renew interest in rescued banks’ stocksBy Ademola Alawiye
Following the signing of the Asset Management Corporation of Nigeria’s Bill by President ...
CORPORATE GOVERNANCE
Corporate governance: CBN to screen shareholders, directors of banks
To address the challenges of weak corporate governance, the Central Bank of Nigeria has said that it will screen those who are fit to be shareholders, directors and managers of banks.
The Acting Director, Financial Policy and Regulation Department, CBN, Mr. Chris Chukwu, said this in Benin City, Edo State, while speaking on the role of the CBN in ensuring a sound, safe and reliable banking sector.
He said, ”To address the challenges of weak corporate governance, the CBN is reviewing the ‘fit and proper persons‘ regime in order to ensure that only credible persons of impeccable financial, personal and professional character are allowed as major shareholders, directors and managers of banks.”
The CBN, he added, had strengthened its on-site and off-site supervision functions in recognition of the need for an effective supervision of the banking supervision of the sector.
According to him, the regulatory arm commenced risk-based supervision and abandoned the former compliance-based supervision approach.
He noted that off-site supervision, a qualitative diagnosis or the core of banking regulation seeks to critically evaluate the operational parameters of a bank and its compliance with operational requirements.
He noted that the Nigerian banking sector was tipped into crisis by the global financial crisis as a result of a number of independent factors, which included macroeconomic instability, major failure in corporate governance at banks and limited knowledge of investment principles by investors and underdeveloped consumer protection.
Others, he added, were transparency about the true financial condition of banks and gaps in regulation.
He observed that the inability of the regulatory authorities to properly and on a timely basis identify the weakness in the banking industry through effective supervision contributed to the sector‘s shock.
According to him, the recent initiative by the CBN to reverse the deterioration in the financial condition of banks culminated in the initiation of a four pillar reform programme with the objective to enhance the quality of the banks, establish financial stability, enable the evolution of a health, financial sector and ensure that the financial sector contributes to the real sector of the economy.
To address the challenges of weak corporate governance, the Central Bank of Nigeria has said that it will screen those who are fit to be shareholders, directors and managers of banks.
The Acting Director, Financial Policy and Regulation Department, CBN, Mr. Chris Chukwu, said this in Benin City, Edo State, while speaking on the role of the CBN in ensuring a sound, safe and reliable banking sector.
He said, ”To address the challenges of weak corporate governance, the CBN is reviewing the ‘fit and proper persons‘ regime in order to ensure that only credible persons of impeccable financial, personal and professional character are allowed as major shareholders, directors and managers of banks.”
The CBN, he added, had strengthened its on-site and off-site supervision functions in recognition of the need for an effective supervision of the banking supervision of the sector.
According to him, the regulatory arm commenced risk-based supervision and abandoned the former compliance-based supervision approach.
He noted that off-site supervision, a qualitative diagnosis or the core of banking regulation seeks to critically evaluate the operational parameters of a bank and its compliance with operational requirements.
He noted that the Nigerian banking sector was tipped into crisis by the global financial crisis as a result of a number of independent factors, which included macroeconomic instability, major failure in corporate governance at banks and limited knowledge of investment principles by investors and underdeveloped consumer protection.
Others, he added, were transparency about the true financial condition of banks and gaps in regulation.
He observed that the inability of the regulatory authorities to properly and on a timely basis identify the weakness in the banking industry through effective supervision contributed to the sector‘s shock.
According to him, the recent initiative by the CBN to reverse the deterioration in the financial condition of banks culminated in the initiation of a four pillar reform programme with the objective to enhance the quality of the banks, establish financial stability, enable the evolution of a health, financial sector and ensure that the financial sector contributes to the real sector of the economy.
AMCON: Investors renew interest in rescued banks’ stocks
Following the signing of the Asset Management Corporation of Nigeria’s Bill by President Goodluck Jonathan last week, investors have renewed interest in rescued banks’ stocks, market operators have said.
According to operators who spoke to our correspondent in a telephone interview on Thursday, the share prices and traded volumes of the rescued banks have witnessed a positive turn since the signing into law of the AMCON.
The Chief Executive Officer, Vintage Wealth Managers Limited, Mr. Idowu Ogedengbe, said that the activities at the Nigerian Stock Exchange reacted to the AMCON‘s development.
He said, ”The AMCON has impacted positively on stocks generally at the stock market, especially the rescued banks. Since the president signed it into law, we have witnessed more bulls than bears. Besides, traded volume has also increased.”
The banking shares have dominated trading since the president signed the bill, except for Thursday, which analysts attributed to profit taking by the investors from the previous rally.
Ogedengbe added that the impact would be better when the AMCON kicks off.
He said, ”When the AMCON is fully implemented, there will be less selling pressures on the banks‘ shares. Investors will buy more into banking stocks. There are investors who have not bought into the banks‘ shares because there are holes in the books of the banks.”
Following the signing of the Asset Management Corporation of Nigeria’s Bill by President Goodluck Jonathan last week, investors have renewed interest in rescued banks’ stocks, market operators have said.
According to operators who spoke to our correspondent in a telephone interview on Thursday, the share prices and traded volumes of the rescued banks have witnessed a positive turn since the signing into law of the AMCON.
The Chief Executive Officer, Vintage Wealth Managers Limited, Mr. Idowu Ogedengbe, said that the activities at the Nigerian Stock Exchange reacted to the AMCON‘s development.
He said, ”The AMCON has impacted positively on stocks generally at the stock market, especially the rescued banks. Since the president signed it into law, we have witnessed more bulls than bears. Besides, traded volume has also increased.”
The banking shares have dominated trading since the president signed the bill, except for Thursday, which analysts attributed to profit taking by the investors from the previous rally.
Ogedengbe added that the impact would be better when the AMCON kicks off.
He said, ”When the AMCON is fully implemented, there will be less selling pressures on the banks‘ shares. Investors will buy more into banking stocks. There are investors who have not bought into the banks‘ shares because there are holes in the books of the banks.”
Business/Money
N4bn CBN succour for Edo State
The Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, on Thursday, brought smiles to the face of Edo State Governor, Mr. Adams Oshiomhole, as he gave assurance of the apex bank to credit the state government account with the over N4bn illegally deducted by commercial banks.
The CBN governor, who was at the government house, Benin, commended Oshiomhole for his open support for the ongoing reforms in the banking sector, saying it was important that all Nigerians continued to give their backing in order to achieve the desired results.
Oshiomhole in an appeal for the remittance of the state‘s money, said, ”We call on you to help us recoup some of the money that was illegally deducted by some commercial banks from Edo state accounts. N4bn is enough to pay two months salary, and if you come back in the next two months you will see the level of changes.
Responding, Sanusi said, ”We already discussed this issue and we will look into the issue again and credit the state account with the money after verification.”
Commending Oshiomhole for supporting banking sector reforms, Sanusi said, ”We thank you for the visit made to the CBN and for your transparent support for reforms. Reforms have to be supported at all levels and be all inclusive. We have to be able to hold all kinds of people to account for their actions, which you have always been known to stand for and why you you have always supported us.”
Oshiomhole on his part, saluted the CBN governor, saying the latter‘s work at the CBN had impacted well on the state.
He said, ”We admire the clear vision you had coming to office and nobody will see change unless you are ready to step on toes. There are forces, no matter how small they are, who, with a lot of resources at their disposal, are ready to resist changes and even where they occur, they are ready to reverse it.
”We in Edo State have benefitted from some of the reforms of the CBN, including the gains in interest rates regime. In Edo state, we are also involved in reforms including tax reforms. The state before now was more or less a tax-free state.”
The Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, on Thursday, brought smiles to the face of Edo State Governor, Mr. Adams Oshiomhole, as he gave assurance of the apex bank to credit the state government account with the over N4bn illegally deducted by commercial banks.
The CBN governor, who was at the government house, Benin, commended Oshiomhole for his open support for the ongoing reforms in the banking sector, saying it was important that all Nigerians continued to give their backing in order to achieve the desired results.
Oshiomhole in an appeal for the remittance of the state‘s money, said, ”We call on you to help us recoup some of the money that was illegally deducted by some commercial banks from Edo state accounts. N4bn is enough to pay two months salary, and if you come back in the next two months you will see the level of changes.
Responding, Sanusi said, ”We already discussed this issue and we will look into the issue again and credit the state account with the money after verification.”
Commending Oshiomhole for supporting banking sector reforms, Sanusi said, ”We thank you for the visit made to the CBN and for your transparent support for reforms. Reforms have to be supported at all levels and be all inclusive. We have to be able to hold all kinds of people to account for their actions, which you have always been known to stand for and why you you have always supported us.”
Oshiomhole on his part, saluted the CBN governor, saying the latter‘s work at the CBN had impacted well on the state.
He said, ”We admire the clear vision you had coming to office and nobody will see change unless you are ready to step on toes. There are forces, no matter how small they are, who, with a lot of resources at their disposal, are ready to resist changes and even where they occur, they are ready to reverse it.
”We in Edo State have benefitted from some of the reforms of the CBN, including the gains in interest rates regime. In Edo state, we are also involved in reforms including tax reforms. The state before now was more or less a tax-free state.”
Wednesday, July 28, 2010
President Goodluck signs AMCON Bill
President Goodluck Jonathan today, Monday, July 19, 2010 at exactly 3.28 pm
signed the Asset Management Corporation of Nigeria, (AMCON) Bill into law.
The Act provides the legal backing for the establishment of the long-awaited
corporation.
While signing the bill, President Jonathan stated that “the establishment of
AMCON is a reflection of the Government’s commitment to safeguard the
interests of depositors, creditors, and other stakeholders in the Nigerian financial
system and in doing so rejuvenate the domestic economy.”
According to the President, AMCON will help to stimulate the recovery of the
financial system and ultimately the wider economy through among others,
providing liquidity to the banks by buying their non-performing loans,
recapitalizing the intervened banks, increasing access to refinancing opportunities
for borrowers, increasing confidence in banks’ balance sheets and therefore
Nigeria’s credit and risk ratings, encourage a return of confidence to the capital
market and preventing continued job losses in the banking industry.
He commended the Ministry of Finance, Ministry of Justice and the Central Bank
of Nigeria for the collaboration that was put into the preparation and finalization of
the landmark Bill and he expressed the hope that the signing into law of the Bill
will be an important turning point for the return to strong economic growth and
financial system stability. He also commended the National Assembly for ensuring
the smooth passage of the Bill.
Meanwhile, the CBN and the Federal Ministry of Finance are putting finishing
touches to the setting up of appropriate structures for the AMCON as required
under the Act. It would be recalled that the CBN Governor at the last Monetary
Policy Committee, (MPC) media briefing on July 5, 2010 indicated that he was
hopeful that AMCON would come on stream by the end of September 2010. With
the signing of the Bill, all is now set for the immediate take off of the corporation
in the weeks ahead.
signed the Asset Management Corporation of Nigeria, (AMCON) Bill into law.
The Act provides the legal backing for the establishment of the long-awaited
corporation.
While signing the bill, President Jonathan stated that “the establishment of
AMCON is a reflection of the Government’s commitment to safeguard the
interests of depositors, creditors, and other stakeholders in the Nigerian financial
system and in doing so rejuvenate the domestic economy.”
According to the President, AMCON will help to stimulate the recovery of the
financial system and ultimately the wider economy through among others,
providing liquidity to the banks by buying their non-performing loans,
recapitalizing the intervened banks, increasing access to refinancing opportunities
for borrowers, increasing confidence in banks’ balance sheets and therefore
Nigeria’s credit and risk ratings, encourage a return of confidence to the capital
market and preventing continued job losses in the banking industry.
He commended the Ministry of Finance, Ministry of Justice and the Central Bank
of Nigeria for the collaboration that was put into the preparation and finalization of
the landmark Bill and he expressed the hope that the signing into law of the Bill
will be an important turning point for the return to strong economic growth and
financial system stability. He also commended the National Assembly for ensuring
the smooth passage of the Bill.
Meanwhile, the CBN and the Federal Ministry of Finance are putting finishing
touches to the setting up of appropriate structures for the AMCON as required
under the Act. It would be recalled that the CBN Governor at the last Monetary
Policy Committee, (MPC) media briefing on July 5, 2010 indicated that he was
hopeful that AMCON would come on stream by the end of September 2010. With
the signing of the Bill, all is now set for the immediate take off of the corporation
in the weeks ahead.
ECONOMIC INDICATORS
Economic Indicators
- M2 - N10,746,065.3m (As @ May, 2010)
- Inflation Rate - 10.3 (As @ June, 2010)
- MPR - 6 (As @ 26 July, 2010)
- Bonny Light - US $77.5 (As @ 16 July, 2010)
- External Reserve - US $37,600,403,367.30 (As @ 26 July, 2010)
- Inflation rates from July, 2009 to June 2010: Max. = 12.5; Min. = 10.3 Current Inflation Rate = 10.3
Subscribe to:
Posts (Atom)