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BUSINESS ROUNDUP: Company sues Access Bank; Naira weakens against dollar on black market; See other stories that made our pick

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Nigeria retains position, scores lower in global competitiveness index

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:

  • Resurgence of COVID-19 in Europe may affect Nigeria’s 2021 budget estimates —Finance Minister
  • NNPC to resume oil exploration in Lake Chad Basin —Sylva
  • Naira weakens against dollar on black market amid liquidity drop
  • Company sues Access Bank for freezing #EndSARS-related account

Summary:

The Minister of Finance, Budget and National Planning, Zainab Ahmed, said on Thursday that the resurgence of the COVID-19 pandemic in Europe may affect the 2021 budget estimate.

Ahmed, who disclosed this when she appeared before the Senate Committee on Finance to defend the 2021 ministry’s budget, said the ministry did not anticipate the second phase of the pandemic which has caused the oil price to decline in the international market during the preparation of the 2021 budget. Read more

The Minister of State for Petroleum Resources, Chief Timipre Silva, said on Thursday the Nigerian National Petroleum Corporation (NNPC) would soon resume oil exploration and drilling in the Lake Chad Basin.

Silva disclosed this to journalists at the end of a meeting on Chad Basin with the Chief of Army Staff, Lt. Gen. Tukur Buratai and other senior commanders of the force in Maiduguri, Borno State. Read more

Naira weakened against the United States dollar on Wednesday at the parallel market, closing at N464, 0.23% lower than the N463 it exchanged for at the previous session, data from abokiFX, which collates rates from informal traders, showed.

It had appreciated by as much as 7.8% at this segment of the forex market within a week in September following the introduction of the Central Bank of Nigeria (CBN) policies regarding importation and exportation, aimed at paring down high fore demand and stimulating dollar supply. Read more

Access Bank Plc has been alleged of illegally barring access to an account used for the promotion of the media coverage of the #EndSARS protests and campaign against police brutality across the country, Bloomberg reported on Wednesday.

A public affairs firm, Gatefield Nigeria Limited, recently filed a suit against the bank for “unilaterally restricting” its account and sought for an award of N100 million in damages, court documents showed. Read more

On NSE ROUNDUP: Bull run lifts volume of trade by 8% amid higher investors’ confidence

Trade activities continued to be boosted by the optimism of investors in the market condition of the Nigerian Stock Exchange (NSE) this week, with stocks appreciating by N248.985 billion and turnover enlarging further by 8%.

Read also: BUSINESS ROUNDUP: Nigeria received $26.94bn in foreign donations; Power generation records all-time peak; See other stories that made our pick

Investors discouraged by low yields in fixed income securities including bonds and treasury bills are casting their glances elsewhere and the stock market, with its days of consistent gains, seems the safe spot for investment at present, drawing an army of them.

A handful of companies 9-month financial statements came with some reporting impressive results, notably Dangote Cement, and the release of more, particularly those of big-cap banks in the days ahead might strengthen gains further. Read more

MEANWHILE, on the tech scene, the week saw the invitation of Nigerian startups to participate in the Ventures Platform Foundation incubation programme, seeking to support early-stage companies building innovative tech solutions for communities hit by the crisis in North-East Nigeria.

With an increasing push from foreign tech companies to expand frontiers and portfolios into Nigeria, there are strong indications that Nigeria is fast becoming a leading investment destination in Africa. Read full review

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

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