BUSINESS ROUNDUP: Nigeria to borrow $17bn; CBN’s Forex release; 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, mainstream business activities while not forgetting the tech/economy build up.

Here are the Headlines:

• Nigerian govt to borrow $17bn from China.
• Okomu Oil announces drop in full-year profit by N3bn
• CBN releases $218m, ¥18m into Forex market
• FIRS boss reveals how multinationals cheat Nigeria of N3.7tn annually

Summary:

The Federal Government on Tuesday unveiled its plan to take a $17 billion credit line from China-Exim Bank.

Zainab Ahmed, the Finance Minister, made the disclosure in the course of defending the resolve of the President MuhammaduBuhari-led administration to source $29.96 billion, aimed at bankrolling several critical infrastructures across Nigeria.

Ahmed revealed that Nigeria was turning to China for credit because lenders like the World Bank and the African Development bank were not enthusiastic about granting the country loan facilities during the recession. Read here.

Leading oil palm processing firm, Okomu Oil Palm Company Plc, during the week, reported a plunge in its after-tax profit, amounting to N2.997 billion for Full Year 2019, compared to the corresponding period of 2018.

This and other financial details are contained in the firm’s Management Reports (Interim) for 12 Months Ended December 31, 2019, posted on the website of the Nigerian Stock Exchange (NSE) on Monday. Read more

In furtherance of its intervention in the inter-bank Foreign Exchange market, the Central Bank of Nigeria (CBN) on Friday said it had injected $218.41 million into the retail Secondary Market Intervention Sales (SMIS).

Isaac Okoroafor, the apex bank’s Director of Corporate Communications, who made the disclosure in a statement in Abuja, added that the sum of ¥18 million was also released into the spot and short-tenured forward segment of the inter-bank Forex market. Read more.

Nigeria loses a staggering N3.635 trillion ($10 billion), translating to more than one third of its 2020 budget (estimated to be N10.59 trillion), every year in the form of tax leakage by multinationals operating in the company.

Federal Inland Revenue Service (FIRS) Chairman, Muhammad Nami, opened the can of worms about the illicit profit-shifting activities  by multinationals on Friday in Abuja during the opening session of the FIRS’s 2020 management retreat. Read more.

On NSE ROUNDUP: Sell pressure costs investors N239bn

The Nigerian Stock Exchange (NSE) recorded four bearishsessions during the week, costing the market a staggering N239 billion.

The bullish performance posted by the bourse on Thursday was no succour as it was grossly inadequate to overturn the cumulative losses that were recorded in the rest of the week.

All the key market performance indicators closed lower. A negative market breadth was recorded this week as 15 gainers emerged against 49 losers. The All Share Index (ASI) shrank by 2.69% to 28,067.09 basis points. Market Capitalisation similarly grew by the same margin to N14.618 trillion. Read more

Read also: BUSINESS ROUNDUP: Nigeria’s rising debt; Google’s free hub launch; See other stories that made our pick

Meanwhile, on our editorial Business Review segment;

We examined the market index of BlackBerry, a once smartphone giant that had it highs sometimes in 2012/2013 We inquired to know if the recent exit made by its manufacturing partners, TCL Communication, is the final nail on the coffin for the brand.

According to TCL, the companies have reached mutual understanding to go different path in the pursuit of individual’s company business. To review looked at possible factors that might have led to this development. Read more.

Also, in our review desk, we reeled around the popular Ph.Ddropout in person of Elon Musk who has build an empire of wealth doing business in tech after having to choose between pursuing academic programme or entering into entrepreneurship.

According to the review, we noted that Elon musk might be far behind on the list of world’s richest persons but with his business momentum might just be the world’s next miracle money wizard. Read more.

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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