Major Business News Stories From The NSE Over The Last Week
Thanks to CSL, SBA and UBA Capital, here are the major news stories over the week:
- Nigeria’s crude oil production for July 2008 was 1.9mn barrels daily.
- Union Homes Reit to provide investors alternative investment outlets: Union Homes Hybrid Real Estate Investment Trust (Reit) will provide alternative investment outlets for long-term investors in the Nigerian capital market. Mr. Abayomi Sanya, managing director of Goldman Asset Limited, the issuing house to the on-going Union Homes Hybrid Reit said that worldwide, Reit has proved to be one of the most reliable medium to long term investments because of its inherent qualities and unique features. Union Homes Savings and Loans Plc, the fund manager of the Reit is raising N50 billion through an offer for subscription of 970.9 million units of N50.00 each at N51.50 per unit in the Union Homes Hybrid Reit.
- New EU agriculture policy threatens livelihood of 10 million Nigerians: At least 10 millions Nigerians and their dependants representing about 6.7 percent of the nation’s population who live on cocoa are due for the labour market if the ministry of agriculture and water resources continues to pretend not to have been informed officially or otherwise of the new Maximum Residue Limits (MRLs), on agricultural commodities by the European Union (EU) which comes into effect from September 1, 2008.
- Virgin Atlantic, the technical partner to Virgin Nigeria (Nigeria’s flag carrier) is currently considering plans to sell its 49% stake in Virgin Nigeria. The company is currently in talks with likely buyers. However, there is no official reason for the sale yet.
- Multinational oil-trading companies have threatened to stop the importation of fuel for the Nigerian National Petroleum Corporation (NNPC) in protest against the application of unfavourable demurrage on imported fuel cargoes.
- Lagos State Government has concluded plans to raise N275bn through the issuance of bonds at the Nigerian Capital Market over the last three years.
- Zenith Bank has announced a change in its financial year-end from June 30 to September 30. The Bank had, last week, reported its 12-month (to June 30, 2008) with over N41bn as net profits.
- ETI floats N295 billion first sub-regional IPO: Ecobank Transnational Incorporated (ETI) the pan-African bank, Monday floated a $2.5 billion first initial public offering (IPO) in the West African sub-region.
- GT Bank commences operation in the United Kingdom: This makes GT Bank the first Nigerian new generation bank to operate as full-fledged commercial bank; licensed to operate corporate and Retail banking services in the UK.
- CBN lists challenges to meeting economic targets: The Central Bank of Nigeria (CBN) has identified a number of constraints to the smooth implementation of the Financial System Strategy 2020 (FSS 2020) programme which seeks to drive rapid and sustainable growth of the nation’s economy.The CBN said corruption and inappropriate laws and regulations for the financial sector have continued to thwart its efforts to fully implement the FSS document.Professor Chuklwuma Soludo, Governor of the CBN, said other challenges include instability in the country’s macro-economy, depth of the banking sector and poor state of infrastructure. The Central Bank of Nigeria (CBN) is targeting single-digit inflation by year end. The regulator explained that food prices are expected to drop as the economy enters the harvest period in the months ahead. Inflation rate had, in June 2008, galloped to 12% compared with 9.7% in the preceding month (May, 2008).
- Inflationary pressure intensifies, rises to 14 percent: Inflationary pressure on Nigeria’s economy is intensifying with rate of consumer price increases soaring to 14 percent in July in what analysts say is a steady response to the spiraling food prices, poor state of infrastructure that has in turn increased the cost of doing business and global rice in fuel prices.This is against 12 percent recorded in June, the National Bureau of Statistics (NBS) confirmed yesterday in its latest price statistics.“The year-on-year average consumer levels as at July 2008 rose by 14 percent. This was higher than 12 percent observed in June. The corresponding urban and rural indices by 12.9 percent and 14.5 percent respectively over the period, the Bureau noted.Since the beginning of the year, inflationary pressure on the economy has continued to mount, erasing governments hopes of retaining the figure at a single digit within the year.
- CBN recalls suspended Wema Bank’s MD, to resume September.
- Neimeth to raise N10 billion for expansion, new businesses: Neimeth International Pharmaceuticals plc is currently awaiting shareholders’ approval with a view to increase its authorized capital base by 1.2 billion shares and thereafter move to the capital market to raise N10 billion.If the shareholders concede to this idea and Neimeth scale all regulatory hurdles, the N10 billion is expected to be raised through a hybrid offer of rights issue of 3 billion shares and public offer of 7 billion shares.
- Change of Service Chiefs in Military High Commission: The President of the federation has made a routine change in the military high command. This move is part of the administration strategic decision to strengthen the new administration.
Tags: News
News | 
donne4real | August 22, 2008