BUSINESS ROUNDUP: CBN threatens loan defaulters; Airtel Africa overtakes Dangote Cement; Other stories

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:

• Nigerian govt to probe online banks over breach of customers’ data privacy
• CBN to place chronic loan defaulters on watchlist
• Airtel Africa overtakes Dangote Cement with N5.4trn market cap
• Nigerians, companies pay govt N6.4trn tax in 12 months

Summary:

The Central Bank of Nigeria (CBN) has announced plans to place on its watchlist the bank accounts of individuals who collected loans and have refused to honour terms and agreements.

CBN disclosed this in a new operational guidelines on the Global Service Instructions(GSI) which it published on its website.

The GSI is aimed at checking the spate of bad loans within the banking sector.

According to the guidline signed by Chibuzo Efobi, for the Director, Financial Policy and Regulation Department of the apex bank, the initiative was conceived to address recurring instances of wilful loan default in the industry.

Airtel Africa is now the most capitalised company in the Nigerian stock market, overtaking Dangote Cement, after its share jumped 9.9 percent to hit its highest price in 52-weeks.

The Bharti Airtel subsidiary crossed the N5 trillion mark, the first Nigerian company to attain the height, following a surge in stock value which settled at N1,398.00, against Thursday’s N1271 per share.

With total shareholder investment in Airtel Africa now valued at N5.4 trillion, Dangote Cement – which has held the number one position for years [losing it to MTN Nigeria on few occasions] – takes the second seat, with its market value sitting at N4.44 trillion.

The Federal Inland Revenue Service (FIRS) has revealed that over N6.405 trillion was generated from tax in the 12 months of 2021.

The Executive Chairman of the FIRS, Mr Muhammad Nami, in the FIRS 2021 Performance Update stated that the target set for the year was N6.401 trillion.

According to him, despite the limitations faced in 2020/2021, FIRS achieved over 100 per cent of its collection target. Breakdown of the taxes collected showed oil generated N2.008 trillion while non-oil N4.396 trillion.

Following increased outcry over alleged breach of customers’ privacy and data invasion by online banks, especially digital loan providers, the federal government has begun a probe into the matter.

This was disclosed by the Director-General, National Information Technology Development Agency, Kashifu Inuwa while addressing journalists in Abuja on Monday ahead of the National Privacy Week 2022.

Read also: BUSINESS ROUNDUP: Bitcoin crashes. Lagos govt to sanction tax defaulters; Other stories

Many Nigerians had recently lamented on social media over alleged unethical and dehumanizing conducts of e-commerce platforms who offer short term loans.

On NSE ROUNDUP: First Bank, Transcorp trade high as Nigerian stockholders end trade with N105.51bn

The Nigerian stock exchange recovered slightly on Friday by 0.42 percent to close the bourse with N105.51 billion gain after Thursday’s loss.

It had ended trading session during the previous day at N24.79 trillion market capitalisation, but Cornerstone and Vitafoam led the rally that upped shareholders’ total investment to N24.89 trillion.

After picking up 195.82 basis points, the All-Share Index jumped to 46,205.05 ASI today, against the 46,009.23 points reported on Thursday.

Investment into the capital market today was put at over 313.44 million shares traded in 5,067 deals worth N5.03 billion.

On the tech scene this week, Seso Global, CcHUB, Uber, OnePort 365, Swiggy, and Partech were some of the names that made the headlines.

Seso Global, a Nigerian prop-tech startup, has announced launching its venture in the United States (US) and United Kingdom (UK).

Also, popular ride-hailing company, Uber, launched a bike-hailing section, UberMoto, of its venture in Ibadan.

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