Nigeria’s Currency Circulation Rises By N230bn In October

Despite reported scarcity of naira in the banking system, data made available by the Central Bank of Nigeria (CBN) showed that currency in circulation rose eight per cent to a new high of N2.99 trillion by the end of October, 2023. The value represents a N230 billion increase from the N2.76 trillion recorded in September, 2023, and an increase of N1.6 trillion from N1.39 trillion recorded at the beginning of 2023. The apex bank defines the currency in circulation as currency outside the vaults of the Central Bank of Nigeria, meaning, all legal currency notes in the hands of the general public and in the vaults of the Deposit Money Banks (DMBs). With this new high of almost N3 trillion, currency in circulation appears to be on the rise to the level it was in October 2022 (N3.29 trillion) before the naira redesign policy of the CBN. Analysts say, it is surprising the currency in circulation is increasing, while the deposit money banks say there is scarcity of naira, with many of the banks restricting withdrawals by depositors to a maximum of N 20,000 as was the case with some banks in Lagos last week. “Certainly, if the apex bank said money in circulation it has to be naira, not the dollar and pounds sterling that is clearly a scarce commodity. How come, here in Lagos, many of the banks could not give more than N20,000 and their ATM machines perpetually dry last week”, David Agumo argued. It is widely believed that it was as a result of the scarcity of the naira that made the CBN announce the continued usage of the old naira notes as legal tenders indefinitely. While some economic analysts, believe the development may be attributed to the apex bank’s decision to extend the deadline for the old notes and the assurance of sufficient currency stock may indicate efforts to stabilise the situation and address any cash scarcity concerns, others say that decision made only recently can only affect currency in circulation for November and not October.

Banks’ Loans Hit N8.03trn In H1 2023 – Report 

Oil and Gas, and manufacturing sectors lead other sectors in the amount of loans received from banks in the first half of 2023, accounting for 55.5 per cent of total N8.03 trillion to the economy as loans. This was revealed via data from the Sectoral Distribution of Credit by Deposit Money Banks published by the Central Bank of Nigeria (CBN) in the Statistical Bulletin for the second quarter of the year of 2023. The Oil and Gas sector got the largest share of N3.09 trillion representing 38.8 percent of fresh loans in the first half of 23, followed by the manufacturing sector which received N1.42 trillion or 17.5 per cent. The financial sector comprising the Finance, Insurance and Capital Market received the 3rd largest share of banks’ loans receiving N837 billion or 10.4 per cent of the new loans in the first half of 23. Trade and General Commerce received N670 billion representing 8.3 per cent while the Information, Communication and Technology sector received N517 billion representing 6.4 per cent of new loans in the first half 2023. General Services and Constructions received N398 billion and 348 billion respectively representing 5.0 per cent and 4.3 per cent of new loans in the first half of 23. The Power and Energy sector received N287 billion representing 3.6 per cent while the public sector (government) received N125 billion representing 1.6 per cent of new loans in the first half of 23. However, banks’ lending to the Mining & Quarrying sector declined by 16.6 per cent or N502 million in the first half of 2023, as lending to the sector dropped to N29.59 billion as the end of June from N30.09 billion at the beginning of the year. Similarly, lending to the Education sector dropped by 11 per cent to N84.19 billion at the end June from N94.4 billion at the beginning of the year.

AccessCorp Reports N1.593trn Gross Earnings In 9 Months

Access Holdings (AccessCorp) Plc has reported a superlative 75.70 per cent year on year (y/y) increase in gross earnings to N1.593 trillion during the nine months of 2023 from N906.93 billion reported the same period of last year. The growth resulted from double-digit increases in net interest income and income from fees and commission during the period. The company posted profit before tax of N294.416 billion at the end of nine months this year from N147.056 billion reported in the preceding year, indicating a surge of 100.21 per cent. The unaudited result released the company showed that AccessCorp paid income tax of N43.973 billion within the period under review against N10.287 billion paid in the preceding year, bringing profit after tax to N250.444 billion from N136.766 billion with 83.12 per cent rise in profit. The company interest income rose by 83.38 per cent to N1.048 trillion against N571.738 billion reported in the previous year while interest expenses up from N291.450 billion in 2022 to N658.508 billion, representing 125.94 per cent growth, bringing net interest income to N389.955 billion at the end of September 2023 from N280.288 billion recorded in the comparative period of 2022. Also, the net income advanced 83.12 per cent y/y to N250.44 billion in 9 months 2023 while the company reported N314.60 billion in gains from foreign exchange gains. Analysis of the result showed that fee and commission went up by 55.95 per cent to N208.182 billion from N133.494 billion while fee and commission expense stood at N59.628 billion against N38.311 billion recorded the previous year. Total assets went up by 42.71 per cent to N21.405 trillion from N14.998 trillion made in the previous year while total liabilities grew from N13.767 trillion to N19.765 trillion in the previous year. Bears dominate as equity market sheds N67bn Domestic equity market Thursday sustained its bearish run, shedding N67 billion as losses recorded in the shares price of small and medium size stocks impacted negatively on the market. Market capitalisation of listed equities declined by 0.18 per cent to N36.856 trillion from N36.923 trillion reported in the previous day.The NGX All Share Index also depreciated by 67084.95 points from 67206.16 points traded the previous day. A review of the investment showed that Mcnichols led gainers table in percentage terms with 8.93 per cent to close at N0.61 per shares, UACN followed with 6.09 per cent to close at N12.20 per share, Oando Plc added 4.07 per cent to close at N8.95 per unit, Chams Plc gained 3.65 per cent to close at N1.99 per share, Nestle Nigeria Plc increased by 2.94 per cent to close at N1050.00 per unit. On the contrary, NSLTECH topped losers chart, declining by 10 per cent to close at N0.27 per share, CWG trailed with trailed 9.94 per cent to close at N7.70 per share, Thomas Way fell by 9.84 per cent to close at N4.03 per unit, International Breweries down 9.78 per share to close at N4.15 per share while Universal Insurance dipped by 8.33 per cent to close at N0.22 per share. Volume of trades declined by 62.007 million, representing 18.8 per cent as investors traded 267.653 million shares valued at N5.110 billion in 5205 deals against 329.660 million shares costing N4.410 billion exchanged hands the previous day in 5998 deals. Transactions in the shares of Fidelity Bank led market activities with 39.831 million shares valued at N326.853 million, Chams Plc followed with account of 23.500 million shares worth N46.416 million, AccessCorp traded 20.555 million shares cost N347.746 million, United Bank for Africa exchanged 19.007 million shares valued at N35.725 million, Japaul Gold traded 18.252 million shares cost N16.285 million.

I left N129bn In FIRS Coffers – Nami

The immediate past Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami, has insisted that he did not approve the sum of N11 billion after taking his pre-retirement leave as has been alleged by the Cable Newspaper. In a statement he personally signed, Nami said that the entire story was sensationally written with mischief that took the ordinary events of his work out of context with the intent to tarnish his hard-earned reputation.   The immediate past FIRS boss stressed that after his exit as FIRS Executive Chairman, he did not make any approvals as has been claimed by the newspaper.  Nami insisted that he met only N1.4 billion in the purse of the FIRS when he assumed office and left the sum of N129 billion in the purse of the Service when he handed over to the new Chairman, Zacch Adedeji recently. “Fundamentally, it is important to note that no payment was made by the Service after the announcement of my pre-retirement leave as claimed by this story. An approval for payment in the Service is one step of a journey to payment. It is the custom that when a new Executive Chairman resumes office, he would review, validate and make final authorisation before any payments can be made.  “It is important to note for the record that all decisions reached and extant liabilities/ commitments of the Service during my stay in office are contained in the handover notes I made available to my successor, Mr. Zacch Adedeji. He is fully briefed on everything. For clarity, the items listed in the Cable Newspaper Report were part of the N16 billion outstanding commitments contained in our handover note.  “The N5 billion paid to the Joint Tax Board was paid to fund the activities of the Presidential Committee on Tax and Fiscal Policy Reforms two months before I left office. It was paid after we received a letter to that effect from the office of Mr. President signed by Zacch Adedeji himself.  “The report maliciously attempts to portray a picture that I hurriedly left the country on September 16th after these so-called “suspicious approvals” were made. Again, nothing can be further from the truth. If I traveled out of the country on the 16th of September, how then did I attend the handover ceremony with Mr. Zacch on the afternoon of Monday 18th September 2023? That handover ceremony was covered by the media, and can be cross-checked.  “It is disappointing to see the Cable, a revered online newspaper attempt to sensationalise events that took place in the ordinary course of work in office, making them seem as if they were done in bad faith.  “I want to categorically state that every decision I made within the time of my stay in office was within the ambit of the law and within the lawful powers I exercised then as Executive Chairman,” he explained.

7 years after, CBN publishes consolidated financial statements

The financial statement comes two weeks after ex-CEO of Financial Reporting Council of Nigeria’s Jim Obazee was appointed by President Bola Tinubu as special investigator to look into the books of the Apex Bank.Godwin Emefiele was suspended by President Tinubu with Folashodun Shonubi appointed as acting Governor.  After a seven-year hiatus, the Central Bank of Nigeria (CBN) has published its financial report for the year ended December 31, 2022. After a seven-year hiatus, the Central Bank of Nigeria (CBN) has broken its silence, revealing consolidated financial statements for the fiscal year ending on December 31, 2022. This marks the first financial report published by the CBN since 2015. The long-awaited financial statement emerges in the wake of recent developments, which is notably as former CEO of the Financial Reporting Council of Nigeria, Jim Obazee’s assumption of the role of special investigator, appointed by President Bola Tinubu. Obazee’s task is to meticulously examine the financial records of the CBN. This move follows the suspension of Godwin Emefiele, with Folashodun Shonubi stepping in as the acting Governor. Spanning the years 2016 to 2022, the Consolidated Financial Statements have finally seen the light of day. These statements disclose a net profit of N65.63 billion for this period. Furthermore, the CBN extended a substantial N23.18 trillion loan to the Federal Government through the Ways and Means mechanism. Within the same timeframe, the bank’s group performance has been impressive, showcasing a commendable profit of N103.85 billion during the identical period. “The financial results for the year demonstrate a substantial achievement. Both the group and the bank independently reported profits of N103,854 million and N65,626 million, respectively. (Comparatively, the figures for 2021 were N75,125 million and N31,044 million),” the official report articulates. The stipulations of the Fiscal Responsibility Act 2011 dictate that 20 percent of the bank’s net income will be allocated to retained earnings. The remaining balance will be disbursed to the federal government of Nigeria. In compliance with the CBN Act 2007, the bank’s annual report should be released within a span of two months following the closure of each fiscal year. “The mandate states that the Bank shall provide a certified copy of its annual accounts, audited by a qualified Auditor, to both the National Assembly and the President within this stipulated time frame,” the report highlights. Delving into the expenses, the CBN incurred a total of N888.3 billion in operating costs. A meticulous breakdown discloses that N346.2 billion resulted from foreign exchange revaluation losses. Additionally, N155.5 billion was expended on rebate allowances from the RT 200 and Naira4Dollar initiatives. These policies were strategically crafted to attract foreign exchange inflows. “Rebate expenses encompass the financial outlay associated with the RT200 and Naira 4 Dollar schemes. These initiatives were introduced by the Bank to amplify foreign currency inflow, diversify the channels of FX inflow, elevate non-oil exports, ensure the stability and longevity of FX inflows, and provide support for companies oriented towards exports, facilitating their expansion of export activities and capabilities,” elucidates the comprehensive report.