Business

Inflation rate records first drop in 15 months, I repeat, Inflation rate records first drop! Plus other business stories…

The National Bureau of Statistics on Tuesday released the Consumer Price Index, which showed inflation dropping from 18.72 per cent in January to 17.78 per cent in February.

The first drop in inflation in Nigeria in over a year. Nairametrics points out a few key highlights:

  • On a Headline basis, the Consumer Price Index (CPI) which measures inflation increased by 17.78 percent (year-on-year) albeit at a slower pace in February 2017, 0.94 percent points lower from the rate recorded in January (18.72) percent.
  • On a month-on-month basis, the Headline index increased by 1.49 percent in February 2017, 0.48 percent points higher from the rate of 1.01 percent recorded in January.
  • The drop in inflation rate was mainly due to a significant drop in the Core Inflation Sub-index. Core inflation, which includes every item except food, rose the slowest at 16 percent.
  • Analysts also attribute the drop to base effects, a situation where a higher inflationary period in the corresponding year will result in slower growth a year after.

Sticking with nairametrics, here’s why GTB Did Better Than Zenith In 2016:

Simply put, GT bank operates a low cost, revenue efficient model that relies less on manpower but more on prudent risk asset allocation while attracting cheap deposits. For most banks (including Zenith bank), it will take years to replicate and possible billions spent in restructuring to achieve this.

Anambra state has an interesting 2017 budget!

Anambra’s 2017 budget is actually a 27.8% reduction over the 2016 budget, continuing the recent trend of reduction of budgetary allocation in the state, following the 38% decrease of the 2016 budget over the 2015 budget.
The 2017 budget is very much in line with Governor Obiano’s ‘do more with less’ mantra.
Another key point of the budget shows that N58.9 billion was appropriated for capital expenditure while N56.5 billion was earmarked for recurrent expenditure. This represents a Capital to Recurrent Expenditure ratio of 51:49, very similar to the Capital to Recurrent Expenditure ratio of 52:48 used last year.

Nigeria’s Power travails seem to worsen as Gencos report being told to reduce power output by TCN

Managing Director of Mainstream Energy Solutions, Operators of Jebba and Kainji Hydro Electricty Plants, Mr Lamu Audu, told journalists, in Abuja, yesterday, that the GenCos could no longer bear the constant energy production reduction orders of the TCN.
He revealed that between February and Monday, March 13, 2017, Jebba and Kainji alone lost 8,574 MW unutilized electricity. He said the total unutilized energy from all the GenCos in the period under review was monumental and most painful at a time most homes and businesses hardly had enough power to meet their consumption needs. His words: “Generation has improved significantly. On the average, it has been above 4,000 MW in the last one month.

“Nigeria is the only country with an interest rate for farmers above 5%” – Minister of Agric, Chief Audu Ogbeh

He made this known at First Bank Nigeria limited’s first ever Agric Expo summit in Lagos. Ogbeh worried about the interest rate level for farmers in Nigeria which stands above 18% also pointed out the Agro-sector as a vital one with the recent NBS Q4, 2016 GDP growth rate of about 4%, and a 24% contribution to the economy.

The summit brought together stakeholders in the Agric sector, who were eager to explore ways of collaborating to boost the value chain in the sector and improve the financing model for what is noted as a viable industry. MD/CEO of First Bank of Nigeria Dr Adesola Adeduntan and Country Manager for AFEX Commodities Exchange Mr Ayodeji Balogun both spoke at the summit as well.

GTBank’s Food and Drink Fair enters its second year this year

The second edition of the Guaranty Trust Bank Plc’s (GTBank) Food and Drink fair is set to hold during the Worker’s Day holiday of Sunday the 30th of April and Monday the 1st of May, 2017. Follow the official website here for updates on it.

Fidelity Bank set to run a free seminar for the entertainment industry

This is according to their MD/CEO, Mr. Nnamdi Okonkwo. The bank has an SME division called the Managed SMEs unit which is saddled with the task of ensuring that operators in the SME segment get the desired support.
He revealed on a radio show in Lagos that the end of the sixth week of the ongoing SME Forum series on the entertainment industry, Fidelity Bank would thereafter run a free seminar for operators in the industry.

ContinentalRe Grows Profit to N3bn, Declares 14k Dividend

ContinentalReinsurance Plc yesterday announced its financial results for the year ended December 31, 2016, showing improved performance. The reinsurance firm, grew its profit before and after tax by over 40 per cent and declared a dividend of 14 kobo per share. However, the bottom-line was bolstered by a significant growth in foreign exchange gain.

Minister of Finance wants BVN extended to Microfinance Banks

Minister of Finance, Mrs. Kemi Adeosun, has written an official correspondence to the CBN governor asking that BVN be extended to Microfinance Banks to enable verification of salary accounts of Federal Government Workers. According to her, with about 27,000 salary accounts of policemen lodged in Nigerian Police Force Microfinance Bank, it’s a loophole for individuals who may want to commit financial crimes.

FBNInsurance to Take Insurance Services to Door Steps of Nigerians

FBNInsurance Limited has said it will ride on its current strong presence and increased investment in retail insurance market to take insurance services to every nook and cranny of Nigeria.
The company, said it will achieve this through the use of its over 2000 man strong retail team to take its array of innovative insurance products to the door steps of Nigerians thus acting as their financial services partner.

120 Television and Radio stations face revocation of their licenses in addition to 54 revoked by NBC already

The National Broadcasting Commission (NBC) has revoked 54 television and radio licenses while another 120 licenses are being processed for revocation due to offences bordering on inability to pay for their licenses within the mandatory 60 days period and failure to go on air two years after the licenses were issued.

The Director General of the commission, Ish’aq Modibo Kawu, who disclosed this to newsmen yesterday in Abuja observed that frequencies cannot be held indefinitely by individuals as there are other people waiting and ready to make use of those frequencies.

He also announced that NBC has extended the deadline for the payment of the over N5 billion debt owed the commission from March 15 to March 31, 2017 adding that after the date, any station still owing the commission would be closed down.

Saving the best for last: