BUSINESS ROUNDUP: Nigerian airlines lose $2.09bn; Domestic debt gulps N609bn; 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:

• Pan Ocean accuses AMCON of taking over properties despite pending appeal court suit
• Domestic debt servicing gulps N609bn of govt’s revenue in Q1 –DMO
• Nigeria’s foreign reserves fall by $373m in June –CBN
• Nigerian airlines lost $2.09bn in two months –IATA

Summary:

Pan Ocean Oil Corporation Limited, whose entire assets have been confiscated amidst a stormy dispute over a N240 billion accumulated debt, has condemned the Asset Management Company of Nigeria (AMCON) for the takeover despite a related lawsuit pending at the Lagos Court of Appeal.

“On July 2nd, 2020, a team led by Mr. Kunle Ogunba(SAN), disrupted work activities at Pan Ocean’s Corporate Headquarters FF Towers under the guise of executing a court order. “This was done despite a pending lawsuit marked FHC/L/CS/552/2020 which is before the Court of Appeal in Lagos,” Pan Ocean said Thursday in a statement obtained by Ripples. Read more

The Nigerian government committed N609.135 billion to servicing its debts in the first quarter of this year, the debt office has said.

The debt status statistics released by the Debt Management Office (DMO) on Thursday demonstrated that interest paid on Nigeria Treasury Bills (NTB) came to N111.605 billion while that paid on Federal Government of Nigeria (FGN) Bonds stood at N488.935 billion. Read more

Nigeria’s foreign reserves slumped from $36.57 billion to $36.2 billion in the period between 1st and 29th June, equivalent to a depletion of $373.23 million, data gleaned from the Central Bank of Nigeria’s (CBN’s) on Thursday revealed.

Read also: BUSINESS ROUNDUP: Oil price rises; Discos lose N30bn monthly; See other stories that made our pick

The reserves attained a high of $45.17 billion on 11th June 2019 but saw a dramatic fall of $11 billion between that time and 28th April 2020, when the figure stood at $33.89 billion. Read more

The International Air Transport Association (IATA) Thursday declared that Airlines in Nigeria suffered $2.09 billion slump in revenue in April and June as carriers in the country grapple with shutdown of the airspace and curbs on air travel disrupt operations in the global aviation market in the aftermath of the coronavirus outbreak.

In a report named “Quarantine measures threaten aviation restart in Africa and the Middle East,” stated that the aviation industry was worst impacted by the economic crisis of all the sectors in Africa and the Middle East region. Read more

On NSE ROUNDUP: Stocks crumble by N257bn amidst worsening negative sentiments

Higher sell pressure was evident in market activities this week with investors taking several profit-making moves that weighed on the value of stocks.

The bourse recorded downtrend on Tuesday, Thursday and Friday with a consolidated loss of N257.129 billion, wiping out marginal gains witnessed in the rest of the week.

All the key market performance indicators closed lower.

A negative market breadth was recorded this week as 3 losers emerged against 59 gainers. The All Share Index (ASI) and the Market Capitalisation both increased by 1.99% to 24,336.12 basis points and N12.695 trillion respectively. 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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