4th to 10th January 2016

January 5, 2016
2016: Airliners Foresee Difficult Year, Seek FG Intervene In Fuel Cost, Dollar Sourcing

Domestic airliners have forecast a difficult operational year in 2016 owing to falling naira value and a life-threatening aviation fuel cost. Speaking with LEADERSHIP at different occasions, the accountable manager, Dana Air, Mr Obi Mbanuzuo and the executive director, Technical Services, Medview Airline, Engineer Lookman Animashaun, unanimously stated that the falling naira value against the dollar which apparently infiltrates into the New Year, puts airline business at difficult operational threshold. Read More

Banks lose N100bn revenue on CoT implementation

Difficult times are around the corner for commercial banks as they have to intensify efforts to remain profitable with nearly N100 billion drop following the Central Bank of Nigeria’s (CBN)’s directive on the phase out of Commission on Turnover (CoT). This revenue shortfall follows the implementation of the Treasury Single Account (TSA), that took government funds out of the banks and the application of the Zero CoT which took effect from January 2016. But Daily Sun findings showed that some banks have continued to charge above the N1 per N1, 000 turnover that was effective from January this year, while some others already have accounts with zero CoT. It was learnt that in some banks, the amount charged as CoT depends on the customers’ relationship and negotiating ability with the bank. Revenue from CoT will now be shut down from January 2016. Read More

January 6, 2016
Stock Market Loses N92bn on Profit Taking

The Nigerian stock market has lost N92 billion on the second trading day of the year due to profit taking. The market capitalisation which opened at N9.757 trillion, decreased by N92 billion, to close at N9.665 trillion, yesterday. Similarly, the All-Share Index depreciated by 268.18 points or 0.95 per cent to close at 28,102.14 on Tuesday. Analysts at the United Capital said bargain hunting is expected to greet the market this week as investors take position on low-priced stocks with significant upside potential coupled. Read More

January 07, 2016
FG moves to block all revenue leakages

Worried by non-remittance of revenues to the public coffers, the Federal Government has articulated moves to block all financial leakages in the Ministries, Departments and Agencies, MDAs, of government and make them more resourceful and accountable. The decision was reached at the meeting of the Federal Executive Council, FEC, yesterday, at the Presidential Villa, Abuja. Briefing State House correspondents at the end of the meeting, Minister of Finance, Mrs. Kemi Adeosun, said FEC had taken an initiative of compelling the MDAs to submit their budgets and operate within them. She said: “The principal discussion in our meeting today was the initiative by this administration to plug revenue leakages in our MDAs that generate revenue. The presentation to FEC was to remind ministers who supervise these revenue-generating boards of their responsibilities under the Fiscal Responsibility Act, FRA. “Let me remind you that under FRA, these boards and corporations, who generate poor revenue, are supposed to generate and operate surplus, 80 per cent of which is to be credited to the Consolidated Revenue Fund. Read More

January 08, 2016
N’Assembly Set to Reduce Budget Benchmark Far below $38

The National Assembly is set to reduce the proposed oil benchmark by the executive for 2016 budget far below $38 per barrel in view of continuous fall in the prices of crude oil in global market. This disclosure was made last night by Chairman, Senate Committee on Media and Public Affairs, Senator Sabi Abdullahi. When the oil benchmark was first proposed in Medium Term and Expenditure Framework (MTEF), the price of crude oil in the international market was $40 per barrel. But a few days after, the price dropped to $36 per barrel. Today the price is slightly below $33 per barrel, thus implying that the proposed budget is already running at a deficit of $5 per barrel if the $38 per barrel benchmark proposed by the federal government is anything to go by. “We are going to be as realistic as possible by reviewing it in line with realities on ground as regards its proposed parameters like the oil price benchmark which today, is far lower than the projected figure of $38 per barrel in the international market. Read More