Posted by: eparrot on: September 1, 2010
1. CBN, NDIC verify banks’ half-year report (THE GUARDIAN)
TO ascertain the authenticity of their claims, a combined team of inspectors from the Central Bank of Nigeria (CBN) and the Nigerian Deposit Insurance Corporation (NDIC) are currently making the rounds in banks to verify their (banks) half-year results recently released. Meanwhile, the British High Commissioner to Nigeria, Bob Dewar, yesterday noted the efforts of the current management of the Securities and Exchange Commission (SEC) in Nigeria headed by Arunma Oteh but urged it to completely de-risk the market by purging it of corruption.
About a month ago, the banks released their half-year financial reports, which indicated improved performances. According to inside sources in the banks, the regulatory bodies’ officials have been going round the banks for the past three weeks to ascertain the genuineness of the performance claims.
The sources told The Guardian that the apex bank’s and NDIC’s officials are paying attention to the loan portfolio structure of the banks. Results released in the last three weeks by five banks have brightened the hope of investors and the public that the financial firms may soon return to the profits era despite the turbulence that have pervaded the industry since 2008.
Dewar gave the charge when he met with the management and staff of SEC in Abuja and addressed them on: “Managing markets: Governance and regulation in toady’s context.” He said the need for Nigeria to undertake this major action had become imperative because of her inter- relatedness with other nations of the world hence she has to be on the same page with others. He added: “I would like to commend her (Oteh), and all of you, on your work in recent months. Like financial centres all over the world, Nigeria’s capital markets and banking sector have come under stress and the spotlight in recent times, partly because of local issues relating to market integrity and poor behaviour, partly linked to the impact of the global financial crisis.
2. CBN Moves to Defend Naira (THISDAY)
There are strong indications that the Central Bank of Nigeria (CBN) will be exceeding its dollar supply target today at the official foreign exchange market, as it moves to ensure that the all- week- long depreciation of the naira, as witnessed last week does not continue. The banking watchdog had set its supply target for dollars at $250 million and has always maintained it to permit market forces to influence the exchange rates to a significant degree.
However, with the development last week where demand for forex skyrocketed and went far beyond the supply of the CBN – raising fears about possible crash of the local currency, THISDAY gathered from competent CBN sources that the monetary authority will sell more to the market today at a level that will compare to the demand by the dealers. A treasurer with one of the banks said last weekend that should the CBN not respond adequately today to the challenges at the market, “then there is a deliberate plan by the regulator to temporarily devalue the naira to prevent uncontrolled purchases of foreign currency.”
But CBN’s Deputy Governor, Economic Policy, Mrs Sarah Alade, had told THISDAY last week that “there is no cause for alarm as the CBN is able to meet the market demand.”
There has been significant increase in the demand for forex, which some traders traced to strong demand from importers, especially for oil imports. THISDAY also gathered that some international firms operating in the country are increasing their demand for dollars as they position themselves for the end of the year and also seek to repatriate profit.
3. Electricity: AFC, UBA, four others bid for power firms (THE PUNCH)
Six Nigerian and international firms have submitted their Expressions of Interest in 17 out of the 18 successor companies of the Power Holding Company of Nigeria. The companies are African Finance Corporation, CPCS Transcorp, Goldman Sachs/Stanbic IBTC, IPA Energy, Lazard/UBA and Standard Chartered Bank.
The Director-General of the Bureau of Public Enterprises, Ms Bolanle Onagoruwa, said in a statement on Tuesday, that the six firms met the August 23 deadline set by the Bureau for the Expression of Interest in the 18 companies. Onagoruwa also disclosed that the 18 companies would be sold before May 2011. She added that the second phase of the power sector reform would kick off what she called the “electricity market.”
The BPE chief said, “The privatisation of the 18 successor companies of the PHCN is expected to be concluded by May 2011. “The next stage of the reform is to start an electricity market. The reform involves some level of liberalisation, as we will request investors to enter the market for the full privatisation of the PHCN.
4. Nigeria, others plan against pollution in Gulf of Guinea ( THE GUARDIAN)
WORRIED by the recent industrial and ecological disaster in the Gulf of Mexico, countries within the Gulf of Guinea have initiated moves to ensure early response to such occurrence in any part of the West and Central Africa. Already, they have agreed to put in place a joint and effective national and regional response system to similar marine pollution within the Gulf area.
The countries that have agreed to the initiative included Angola, Benin, Cameroon, Congo, Cote d’Ivoire, Democratic Republic of Congo, Gabon, Ghana, Guinea, Guinea Bissau and Equatorial Guinea. Others are Liberia, Nigeria, Sao Tome and Principe, Sierra Leone and Togo. The countries, all within the West and Central Africa sub-region, are also members of the Interim Guinea Current Commission (IGCC) that have been implementing the Guinea Current Large Marine Ecosystem (GCLME) project.
Their agreement to form a common forum to tackle large marine pollution within the Gulf of Guinea was contained in their “Osu declaration”, made available to The Guardian, in Lagos, recently. The document was signed by the respective ministers responsible for environmental protection and their authorised representatives. For effectiveness, the commission has urged member states to enact national legislations to address liabilities, compensations, safety and security related matters for off-shore platforms.
Considering the linkage between fresh water and the coastal marine ecosystems and the need to accelerate agreement for cooperation over Africa’s shared waters, the commission asked members to ratify the United Nation Convention on the law of non-navigational uses of international water course.
It also recommended the sustenance of project activities through reinforced commitment to resolving the challenges arising from identified trans-boundary problems. Besides, they emphasised the need for regional preventive and response measures for major oil spills, like the one in the sister Gulf of Mexico on large marine ecosystem.
