Finance

AFCON: Edo Govt opens free viewing centres for Nigeria/South Africa clash

Published

3 months ago

February 7, 2024

As Nigeria’s Super Eagles clash with the Bafana Bafana of South Africa at the semi final stage in the ongoing African Cup of Nations, AFCON, today, the Edo State Government has set up free viewing centres across various locations within the Benin metropolis.

newsmen reports that the State Commissioner for Communication and Orientation, Chris Nehikhare, who disclosed this to newsmen, said the centres are to enable residents to watch the live transmission of the match. Nehikhare said the centres are strategically located and adequately secured to guarantee the safety and comfort of viewers and residents. According to him, the viewing centers are located in Main Gate, by Nadia Bakery, New Benin by Total fuel filling station, Ekehuan Campus Gate by Garick Memorial School fence, Oliha Market, on top of the red commercial decking building by the traffic light, and Ramat Park at Ikpoba Hill, all in Benin City.

He added that more locations will be announced before the start of the game. Nehikhare, who opined that the government understands the unifying power of sports, urged all football enthusiasts, supporters and members of the public to join the government for an exciting and captivating experience, as it cheers the Super Eagles to victory.

Finance

Nigeria’s treasury bills yield 23.45% increase, highest ever in a single auction

Published

3 months ago

February 8, 2024

NewsDirect

…Set to relief pressure on naira in FX market

…As EFCC moves to restrain business owners from charging in dollars

Nigeria’s treasury bills have yielded a 23.45 percent increase marking the highest profit the Central Bank of Nigeria (CBN) has ever recorded from a single auction.

The one-year treasury bill was oversubscribed to the tune of N1.87 trillion, three times more than the N600 billion that was offered.

Treasury bills or T-Bills are short-term debt securities issued by the government to make up for budget deficit and fund projects

In Nigeria, T-Bills are issued by the Central Bank of Nigeria (CBN) on behalf of the federal government. The investment is backed by the full faith and credit of the Federal Government of Nigeria (FGN), hence, it is considered one of the safest forms of investment.

The T-bill recorded a stop rate of 19 percent versus 11.54 percent at the last auction while the 182-day and 91-day bills had stop rates of 18 and 17.24 percent versus 7.15 percent and 5 percent respectively at the previous auction.

The one year bill sold at a stop rate of 19 percent while the N200 billion each for the 182-day and 91-day bills had stop rates of 18 and 17.24 percent respectively.

Meanwhile, investors staked only N39.9 billion for the 91-day bill compared to the N200 billion offered by the apex bank. The range of interest rates bid was between 7 percent and 17.2 percent. The central banks sold the N39.9 billion staked.

For the 182 days T-bills, investors undersubscribed the offer, staking just N76.8 billion out of the N200 billion offered by the central bank. The central bank allotted only N51.3 billion. The range of bids was 4 percent to 19.9 percent. The stop rate was 18 percent for treasury bills.

In the last auction, the stop rate for the one-year bill was 11.54 percent while the 91-day bills and 182-day bills closed at 5 percent and 7.15 percent respectively.

Financial analysts who spoke with NewsDirect finance correspondents predict that the foreign exchange to be earned from this will help relieve the pressure on the naira in the FX market.

The naira however gained on Wednesday, closing at N1418/$ compared to N1433.89/$ the previous day, according to data by FMDQ Securities Exchange Ltd.

Recall that the CBN Governor, Mr Olayemi Cardoso had last year at the Chartered Institute of Bankers of Nigeria (CIBN) Bankers’ Dinner stated how the fixed monetary tools of the Bank have begun to yield results, Cardoso said regular open market operations (OMO), treasury bills, standing deposit facility (SDF) and cash reserve requirement (CRR) have been used to mop up excess liquidity from the banking system.

Cardoso said he is confident that with continued tightening measures for the next two quarters, the apex bank will be able to effectively manage inflation.

The yield on the treasury bills coupled with reforms in the foreign exchange market are indicating that the policies and measures being deployed by the CBN to tame inflation may be working.

The current yield when matched with the latest inflation rate of 28.92 percent brings the negative real return on the one-year T-bill to 5.52 percent as against the previous negative return of 16.68 percent.

If put side by side with the CBN’s governor inflation target of 21 percent for 2024, it gives a positive real return of 2.45 percent.

…As EFCC moves to restrain business owners from charging in dollars

Meanwhile, in a bid to curb the pressure of the dollar on the Naira, the Economic and Financial Crimes Commission (EFCC) has initiated a move to clampdown on business owners charging their services in dollar denomination.

The anti-graft agency on Wednesday revealed that it has set up a Special Task Force in all its Zonal Commands for the enforcement of extant laws against currency mutilation and dollarisation of the economy.

The Task Force, inaugurated by the Executive Chairman of the Commission, Ola Olukoyede, was raised to protect the economy from abuses, leakages and distortions exposing it to instability and disruption.

Already, the Commission has made some arrests of perpetrators of issuance of invoices in dollars and mutilation of the Naira in Lagos and Port Harcourt.

Also, proprietors of private Universities and other institutions of higher learning charging fees in dollars have been invited by the Commission.

The Commission is committed to the enforcement of all laws in place for the reflation and stimulation of the economy.

Finance

Court orders Sen. Victor Umeh to repay N136m bank debt to AMCON

Published

3 months ago

January 30, 2024

NewsDirect

A Federal High Court, Abuja has ordered Sen. Victor Umeh to pay about N136 million to the Asset Management Corporation of Nigeria (AMCON) over his unpaid bank loan.

Justice Inyang Ekwo, in a judgment in the suit marked: FHC/ABJ/AMC/12/2022, also ordered Umeh, who represents Anambra Central Senatorial District, to pay the debt along with the accrued interest.

Justice Ekwo, who declared that Umeh was actually indebted to AMCON, issued an order directing the forfeiture of Umeh’s 5,000,000 units of Skye Bank shares in the records of the Central Securities and Clearing System to AMCON.

The judge also awarded a cost of N2 million in favour of AMCON and against Umeh.

AMCON filed the suit against the lawmaker who is currently the Chairman, Senate Committee on Diaspora.

While AMCON was the claimant, Umesh was the sole defendant in the case.

AMCON had told the court that Umeh got a loan of N23,250,000.00 from the now defunct Skye Bank in January 2008 “to enable him invest in and purchase shares of a financial institution in Nigeria.”

According to the claimant, the tenor of the credit facility granted the defendant was specifically fixed for 356 days.

“The offer letter contained various other explicit terms and conditions which the defendant accepted by duly executing the memorandum of acceptance.

“The defendant utilised the funds granted to him as credit facility by the bank.

“However, at the expiration of the tenor of the facility, the defendant failed and neglected to liquidate thr credit facility as per the contract,” it said.

AMCON stated that it later acquired the unpaid debt when Skye Bank became unsuccessful in making Umeh to repay.

It said that its suit was to recover the debt which stood at N135, 722, 303.40k as at April 2011.

Delivering the judgment, Justice Ekwo, observed that despite being served with court documents in relation to the case, Umeh failed to file any response or make any effort to enter a defence.

“It is to be noted at this point that the defendant, upon being served, failed to enter a defence is this case.

“It is trite law that the net effect of the failure of a defendant to file pleadings is that the assertions of the claimant in his pleadings stands unchallenged and are deemed admitted and established.

“It is also trite that the effect of a defendant’s failure to call evidence in defence of the claims against him at the trial is that he is presumed to have admitted the case made against him by the claimant,” he said.

The judge added that despite Umeh’s failure to file a defence, the plaintiff was able to prove its case through the evidence it presented.

He held that by the evidence presented by the plaintiff, “the indebtedness of the defendant has been proved.

He said he found that the plaintiff had established its case by preponderance of evidence as required by law.

“Consequently, judgment is entered per terms as follows:

“A declaration is hereby made that the defendant is indebted to the plaintiff, in the sum of N135,722,303.40 representing the principal debt sum plus all the accrued interest and charges, at the rate of 15 per cent per annum drawn up to 25th January, 2021, being the sum due and outstanding from the defendant to the plaintiff.

“A declaration is hereby made mandating the defendant to pay to the plaintiff the sum of N135,722,303.40 representing the principal debt sum, plus all the accrued interest and charges, at the rate of 15 per cent per annum drawn up to 25th January 2021, in settlement of the debt due and outstanding from the defendant to the plaintiff.

“An order is hereby made mandating the defendant to pay the plaintiff a sum representing 15 per cent of the principal sum, as interest on the judgement sum, from 26th January, 2021, till the date of delivery of judgement.

“An order is hereby made mandating the defendant to pay the plaintiff a sum representing 15 per cent of the judgement sum as interest on the judgement sum, from the date of delivery of judgement till the date of full and final liquidation of same.

“A declaration is hereby made that the defendant is liable to a total forfeiture and divestment of all his title, rights, interests, benefits, and claims in respect of the 5,000,000 shares of Skye Bank shares in the record of the Central Secures & Cleaning System while the plaintiff is entitied to take over, as beneficial owner, all the title, rights, interests, benefits and claims in respect of same.

“An order of final foreclosure and final forfeiture is hereby made foreclosing and divesting the defendant of his title, rights and interests, in respect of the 5,000,000 units of Skye Bank shares in the records of the Central Securities & Clearing System and vesting same in the plaintiff in furtherance of part liquidation and satisfaction of the outstanding debt obligation of the defendants due to the plaintiff.

“An order is hereby made mandating the defendant to pay to the plaintiff the sum of N2,000,000 00 as costs for filing and pursuing this claim,” the judge declared.