Connect with us

Business

BUSINESS ROUNDUP: CBN blocks accounts of fintech firms; Nigeria’s Inflation rate falls to 17.38% in July; Other stories

Published

on

BUSINESS ROUNDUP: Nigeria to disconnect Togo and Benin; China displaces America. See other stories that made our pick

Hello, and welcome to Business Roundup this week. Here, we bring you highlights of events that happened during the week -from the capital market to the mainstream business activities, while not forgetting the tech/economy build up.

Here are the Headlines:

  • CBN to block accounts of fintech companies
  • Salaries trapped as CBN places post-no-debit on 18 companies
  • Price of cooking gas increased by 3.52% in July – NBS
  • Nigeria’s Inflation rate falls again to 17.38% in July

Summary:

Employees and investors are currently in limbo as the Central Bank of Nigeria (CBN) has directed banks to place a post-no-debit on the bank accounts of 18 companies.

A post-no-debit means that all debit transactions, including ATMs and cheques, on the accounts, have been blocked but can receive inflows.

This means most employees of the affected companies might not get paid. CBN’s instruction to commercial banks is contained in a circular signed by Haruna B. Mustapha, director of banking supervision.

The National Bureau of Statistics (NBS) revealed on Thursday that Nigerians spent more on kerosene and cooking gas last month.

The agency disclosed this in Price Watch for July released in Abuja.

The NBS said the average price per litre paid by consumers for National Household Kerosene increased by 7.31 percent from N370.29 in June to N370.34 in July.

It added that the states with the highest average price of kerosene were Ebonyi (N520.83), Taraba (N491.67) and Jigawa (N457.41).

The National Bureau of Statistics (NBS) has revealed that Nigeria’s inflation rate dropped for the fourth consecutive month in July.

According to the statistics body’s latest consumer price report, released on Tuesday, July inflation rate was 17.38 percent, compared to 17.75 percent recorded in June 2021.

This represents a 0.37% decline in the rate of inflation compared to the previous month. “July inflation rate implies that prices continued to rise in July 2021 but at a slower rise than it did in June 2021,” NBS said.

Justice Ahmed Mohammed of the Federal High Court, Abuja, on Tuesday granted the Central Bank of Nigeria (CBN)’s request to block accounts of six fintech companies for the next six months.

The firms are Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited.

The judge gave the order while ruling on a motion filed by a former Attorney-General of the Federation and Minister of Justice, Chief Micheal Aondoakaa (SAN), on behalf of the CBN Governor, Godwin Emefiele.

On NSE ROUNDUP: Investors exchange over 866.544 million shares worth N12.25 billion

Investors exchanged over 866.544 million shares worth N12.25 billion in 17,291 deals between Monday to Friday this week, in contrast to last week’s 1.610 billion shares in 18,622 deals, valued at N12.58 billion.

Read also: BUSINESS ROUNDUP: Nigerian govt rejects govs’ advice for N380/litre; Nigeria’s pension fund hits N12.4tr; Other stories

According to the NGX market report, by measure of volume, the Financial Services Industry recorded 445.324 million shares valued at N3.676 billion traded in 7,560 deals.

The Consumer Goods Industry followed with 119.649 million shares worth N4.969 billion in 3,424 deals, while ICT accounted for 87.132 million shares worth N1.938 billion in 924 deals.

On the tech scene, although the week started off with so much encouraging developments, it ended, however, in a choking state as CBN took actions against some fintech players.

The move to regulate the fintech space by CBN geared, quite swiftly, into another level as the Nigerian apex bank, during the week, armed with court order announced resolution to block the accounts of some fintech companies.

The news soon became the major highlight of the week. But, aside the development, the tech scene also recorded multiple equity raisers.

Remarks

Thanks for joining the roundup this week. See you next week for another serving. Don’t forget, for the latest news and updates from around the globe, keep reading Ripples Nigeria.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Investigations