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Concern Mounts Over States’ Fiscal Sustainability - Lee

Concern Mounts Over States’ Fiscal Sustainability – Lee

October 24, 2019 2:43 pm
  • Only three states can survive without federal funds, says BudgIT report

World Bank’s Senior Economist, Yue Man Lee, Wednesday raised the alarm that the fiscal capacity of the 36 states of the federation and the Federal Capital Territory (FCT) has declined while their fiscal sustainability risks have also increased.

While pointing out that the states’ revenues have largely underperformed, she stressed that the recent growth in non-oil revenues particularly Value Added Tax (VAT) was not enough to offset the drop in statutory transfers.

This is coming as a new report has revealed that only Lagos, Rivers and Akwa Ibom …

IGI Reduces Staff Number To Meet Recapitalisation Exercise

IGI Reduces Staff Number To Meet Recapitalisation Exercise

October 24, 2019 1:45 pm

In a bid to meet up with the recapitalisation target set for the insurance industry, Industrial and General Insurance (IGI) Plc has commenced its process, by slashing its operating expenses in a restructuring exercise that will allow it meet the deadline.

The insurance firm allegedly laid-off about 60 staff recently so as to reduce cost. However, this development did not go well with the affected staff as they staged a protest last week to express their grievances over the issue.

Distressed employees warned the management to rescind its decision to retrench the majority of them or face industrial action. The …

Royal Exchange Profit Falls By 187% In 3rd Quarter Q3 2019

Royal Exchange Profit Falls By 187% In 3rd Quarter Q3 2019

October 24, 2019 1:37 pm

Royal Exchange Plc has recorded a 187 percent loss for the third quarter (Q3) of the year which ended 30 September 2019.

This was revealed in the insurance company’s unaudited financial statements published on the website of the Nigerian Stock Exchange. According to the financial statement, Royal Exchange generated ₦11 billion in its gross premium income over the past nine months of 2019. However, there was a 0.9 percent decrease compared to ₦11.1 billion which was generated in Q3 2018.

For its Profit Before Tax (PBT), the underwriting firm recorded a loss before tax of ₦72.8 million in Q3 2019, …

NAICOM, Stakeholders To Brainstorm On Recapitalisation

NAICOM, Stakeholders To Brainstorm On Recapitalisation

October 24, 2019 1:30 pm

The National Insurance Commission (NAICOM) is ready to host an interactive session with shareholders’ associations of insurance firms so as to deepen engagement in the recapitalisation process.

The session, scheduled for next Tuesday in Lagos, is part of measures by NAICOM to achieve a seamless recapitalisation to the benefit of all stakeholders.

The meeting is a fallout of the ongoing recapitalisation exercise in the insurance sector and the need to provide adequate information to all stakeholders.

READ ALSO: EEDC Improves Power Supply In South East

A statement by the Head, Commissioner for Insurance Directorate, ‘Rasaaq ‘Salami, the Acting Commissioner for …

FG Suspends MTN, Other Service Providers USSD charges

FG Suspends MTN, Other Service Providers USSD charges

October 24, 2019 11:47 am
The Nigerian government on Thursday ordered the immediate suspension of the proposed Unstructured Supplementary Service Data (USSD) charges on customers who use them.

“After receiving briefing about the proposed USSD charges, I realized there was no justification for the new tariff,” minister of communication Dr Isa Ali Ibrahim Pantami said.

READ ALSO: Two Pastors Use Same Woman For Same Miracle (Photos)

“Consequently, I directed it’s immediate suspension, any telecom operator that violates this directive would be sanctioned appropriately.”

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Twitter Tumbles As ‘Bugs’ Hit Their Revenue Growth

Twitter Tumbles As ‘Bugs’ Hit Their Revenue Growth

October 24, 2019 11:05 am
Twitter shares plunged Thursday after reporting glitches that impacted its ad-targeting ability, pulling down revenue growth in the past quarter.Profit for the third quarter was $37 million, a sharp drop from last year when the online messaging platform was helped by a large tax benefit.

Revenue rose nine percent from a year earlier to $824 million, well below analyst forecasts, impacted by what the company called “revenue product issues.”

Shares in Twitter slid as much as 20 percent in pre-market trade on the disappointing results.

Twitter said revenue was hit by “bugs” which made it harder to deliver targeted

…
Nokia Company Shares Plunge On Lower Earnings Forecast

Nokia Company Shares Plunge On Lower Earnings Forecast

October 24, 2019 10:50 am

Shares in Nokia tumbled 20 percent on Thursday after the Finnish telecommunications equipment maker cut its earnings forecast in the face of intense competition to build the latest 5G mobile networks.

While returning to profit in the third quarter, the company said it was downgrading its expectations for earnings and margins for this year and 2020 “due to margin pressure, additional 5G investments and additional digitalisation investments.”

Nokia and its rivals Ericsson of Sweden and China’s Huawei are engaged in a fierce battle to roll out 5G, with both Ericsson and Huawei upgrading their outlooks as the market appears to …

American Airlines Earnings Rise Despite Boeing MAX Hit

American Airlines Earnings Rise Despite Boeing MAX Hit

October 24, 2019 10:38 am

American Airlines rode strong demand for flying in the travelling public to higher earnings Thursday despite mounting costs connected to the prolonged grounding of the Boeing 737 MAX.

Fuller flights amid a good consumer environment enabled American’s profits to soar 14.2 percent higher in third-quarter to $425 million. Revenues increased three percent to $11.9 billion.

Chief Executive Doug Parker said he was pleased with the earnings growth, but conceded that “our results should have been better.”

Parker cited the hit from the MAX grounding — in the wake of two tragic crashes — as well as ongoing operational challenges tied …

Following the registration of a N30 billion debt issuance programme with the Securities and Exchange Commission of Nigeria (SEC), Interswitch Limited, a leading technology-driven company has concluded a N23 billion Series 1 Fixed Rate Senior Unsecured Callable Bonds issue via a Special Purpose Vehicle (SPV), Interswitch Africa One PLC. The Series 1 Issue priced at 15% was 2.6x subscribed. The 7-year Bonds, embedding a call option that can only be exercised from the second year, are payable in full at maturity. An application will be made to list the Bonds on The Nigerian Stock Exchange (NSE) on receipt of the SEC’s approval of the proposed allotments. Investor participation was restricted to qualified institutional investors as defined by the SEC in Nigeria, with a proposed Bonds allocation of 64% to pension fund managers, 7% to asset managers and 22% to commercial banks pending SEC approval. The strong level of oversubscription demonstrated investor confidence in the Interswitch brand, business model and long-term strategy, supported by strong domestic ratings from both Agusto & Co. Limited and Moody’s Investor Service. The Issuer was assigned “Aa3” national scale programme rating by Moody’s and “Aa” national scale rating by Agusto, on the back of positive secular industry shifts, a strong market position and a good liquidity profile. The Sponsor was also assigned “Aa” rating by Agusto. The Founder and CEO, Mr Mitchell Elegbe, commented, “We are delighted to report the success of the first series of Bonds issued under our Programme, especially with the level of interest shown by investors. Diversifying our funding sources through the inclusion of these Bonds will enable us to achieve our strategic objectives and vision.” FBNQuest Merchant Bank and Stanbic IBTC Capital acted as Lead Financial Advisors/Issuing Houses and ABSA Capital Markets Nigeria, FCMB Capital Markets, Quantum Zenith Capital & Investments and Rand Merchant Bank Nigeria, as Joint Issuing Houses.

Interswitch Limited Completes ₦23Billion Bond Placement

October 24, 2019 10:24 am

Following the registration of a ₦30 billion debt issuance programme with the Securities and Exchange Commission of Nigeria (SEC), Interswitch Limited, a leading technology-driven company has concluded a ₦23 billion Series 1 Fixed Rate Senior Unsecured Callable Bonds issue via a Special Purpose Vehicle (SPV), Interswitch Africa One PLC.

The Series 1 Issue priced at 15% was 2.6x subscribed. The 7-year Bonds, embedding a call option that can only be exercised from the second year, are payable in full at maturity. An application will be made to list the Bonds on The Nigerian Stock Exchange (NSE) on receipt of the …

Nigeria Moves 15 Places Up On Ease Of Doing Business Index

Nigeria Moves 15 Places Up On Ease Of Doing Business Index

October 24, 2019 6:57 am
Nigeria has moved up by 15 places to 131 on the World Bank’s Ease of Doing Business ranking. Africa’s most populous country was ranked 146th in the previous year.

The report is an annual publication that measures business regulations across 190 countries. In its latest study, World Bank ranked Nigeria in the top 10 economies where business climates have been improved. Nigeria was ranked 15 in ease of getting credits or loans.

Nigeria’s worst ranking in the report was at the ease of registering properties where it ranked 183. Nigeria also ranked 179 in trading across borders.

The latest World

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Nigeria And Russia Sign MoU On Rail Infrastructure

Nigeria And Russia Sign MoU On Rail Infrastructure

October 23, 2019 12:58 pm

Nigeria, Wednesday in Sochi, Russia, signed a memorandum of understanding (MoU) with Russia for the modernisation, development of railway infrastructure, rehabilitation of the existing Nigerian Railway Corporation (NRC) rolling stock-fleet and upgrading of workshops across the country.

The MoU involves two Russian firms: Russian Joint Stock Company Russian Railway (JSCRR) and Transmash Holding, a private rolling stock manufacturing company.

Signing the agreement on behalf of the Nigerian government, Minister of Transportation, Mr. Chibuike Amaechi, stated that the move was to boost and Fastrack the construction of the rail manufacturing company at Kajola, Ogun state.

Amaechi, signed the agreement with CEO/Chairman, …

Nigeria Will Make Telecoms Services Competitive For MTN

Nigeria Will Make Telecoms Services Competitive For MTN

October 23, 2019 10:22 am

Nigerian regulators warned they may have to take action to boost competition in the telecommunications industry, a move that could affect international operators including market leader MTN Group Ltd.

While a formal inquiry isn’t underway, authorities are focusing on ownership of data services and infrastructure in Africa’s most populous nation, Babatunde Irukera, executive vice chairman of the Federal Competition & Consumer Protection Commission, said in an interview.

“We are slicing it a little slimmer than who has the most subscribers. We are looking more at data capability and data infrastructure,” he said in Abuja, Nigeria’s capital. “Early indications show …

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𝐀𝐟𝐫𝐢𝐜𝐚 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐍𝐞𝐰𝐬, 𝐍𝐞𝐰 𝐘𝐨𝐫𝐤, is a nonpartisan online news portal founded on the truth to provide you with weekly, insightful articles written with precision and current updates on current events from Africa in particular and the rest of the world in general. All of our reports undergo extensive fact-checking to ensure their veracity, and we adhere strictly to the facts, no matter whose ox is gored.

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