Banking
CBN sells $108m at Dutch Auction
LAGOS — The Central Bank of Nigeria, CBN, yesterday, sold $108 million at the bi-weekly foreign exchange auction.
This came as the non release of statutory allocation funds by the Federation Accounts Allocation Committee, FAAC, as expected yesterday caused interbank interest rates to rise significantly.
In another development, the CBN has revoked the licenses of 236 Bureau de Change, BDC, operators due to non-payment of the mandatory deposit of $20,000.
The revocation was announced by the Director, Trade & Exchange Department, Batari Musa, in a statement entitled: “Revocation of Operating Licences of 236 BDCs.”
He said: “The licences of 236 BDCs have been revoked. Consequently, all authorized dealers/buyers and the general public is advised that with effect from January 14, 2013, any foreign exchange transaction, including sales to and purchases from these BDCs as well as transfer of funds through them and or on their behalf are illegal.”
CBN sells $108m at Dutch Auction System
Result of the Wholesale Dutch Auction System, WDAS, session conducted by the CBN, yesterday, showed that the amount of foreign exchange sold by the apex bank rose 195 per cent to $108.5 million as banks besieged the official market to take advantage of the official exchange rate which is lower than the interbank exchange rate. Despite the surge in demand, the official exchange rate remained stable at N155.72 but the interbank exchange rate rose slightly to N157.28 from N157.24 on Tuesday.
FAAC delay pushes up interbank rates
On the other hand, interbank interest rate rose by over 100 basis points (bpts) due to delay in the release of the statutory allocation funds from FAAC.
Interbank operators had expected the funds to be released, yesterday. This coupled with outflow of liquidity for foreign exchange purchases and treasury bills purchases, caused scarcity of funds, and rise in interest rates.
Interest rate on overnight borrowing rose by 150 bpts to 14.63 per cent, while that of 7-Days rose by 133bpts to 14.83 per cent. This trend is, however, expected to be reversed today when the statutory allocation will hit the market.
NSE appreciates by N1.30bn
Meanwhile, the value of equities listed on the Nigerian Stock Exchange, NSE, appreciated by N130.13 billion, yesterday, on the back of sustained investors patronage.
Specifically, the market capitalisation rose by 1.37 per cent to close at N9.62 trillion as against N9.49 trillion recorded in the previous day.
Another market indicator, the All Share Index, rose by 1.34 per cent to close at 30,098.83 points from 29,686.95 points it opened.
Forty seven equities recorded share price appreciation as against 50 equities in the previous day while 13 equities recorded share price depreciation as against eight losers in the previous trading day, suggesting a positive market breadth.
Meantime, the volume of equity transactions declined by 24.36 per cent, recording 622.32 million shares valued at N4.97 billion exchanged in 7,446 deals in contrast to 822.69 million shares valued at N5.06 billion exchanged in 7,379 deals.
The Financial sector led the market transaction volume with 504.91 million shares valued at N3.72 billion in 5,055 deals as against 734.21 million shares valued at N3.95 billion in 4,987 deals recorded in previous session.
This was followed by the Conglomerates sector with 40.44 million shares traded in 201 deals while Consumer Goods sector recorded 34.13 million shares in 1,172 deals to close with third position on the chart.
The volume recorded in the sector was driven by transaction in the shares of United Bank of Africa Plc, UBA; Diamond Bank Plc, FBN Holding Plc, Fidelity Bank Plc and NEM Insurance Company Nigeria Plc. The total volume of 275.27 million shares valued at N2.09 billion traded in the five stocks accounted for 43.23 per cent of the entire market volume.
Banking
Millions of customers still stranded worldwide 24 hours after GT Bank online operations suffered attacks
By Yemie ADEOYE
GT Bank, one of Nigeria’s leading banks, with operations across Africa and the United kingdom, and with an asset base of about US$3.11 trillion is under a cyber attack which has left millions of its customers across the world stranded in the last 24 hours.
The bank which was renowned for its seamless online operations at inception has suffered dwindling online efficiency in recent years and this current attack didn’t come as a surprise to many of its numerous customers. However, it is becoming worrisome that over 24 hours after its online operations went down, the bank has not been able to arrest the situation and restore its online services.
Several customers of the bank took to their X (formerly known as twitter) handles to express their frustrations at the bank, as several of the customers in the diaspora are unable to access their accounts and carry on with their transactions. A customer , Jeff55 who lamented on his X handle about the development, stated that it is a thing of shock that a bank of this size couldn’t afford to have the necessary tools and experts to ensure a full protection of its online operations in this age and time.
Another customer Dimma stated that while Cybersecurity training may seem tedious, the recent #GTBank hack is a stark reminder that everyone is just a click away from a devastating attack.
Several media organisations had reported that hackers have stolen GT Bank website, and intercepted customers Data in massive phishing operation.
At the time of filing this report, Biztellers.com.ng checks on the banks website shows that it is still down and unaccessible, and neither GT Bank media and communications unit nor any of its agencies or surrogates have commented officially on the development.
Banking
Tinubu commends increased crude production to 1.61 mbpd
Says output surge buoyed by reforms he announced in May 2024 to address gaps in PIA
President Bola Ahmed Tinubu on Sunday declared a resurgence in the oil & gas industry, commending the increased crude production to 1.6 million barrels per day.
The president, who said this in a national broadcast, maintained that the resurgence was buoyed by the reforms he announced in May 2024 to address the gaps in the Petroleum Industry Act (PIA).
Nigeria’s crude oil output got a boost to 1.61 million barrels per day in July 2024 through the president’s directive and the industry leadership provided by the Nigerian National Petroleum Company Limited (NNPCL).
Acknowledging what he called a resurgence of the once-declining oil and gas industry in his Sunday-morning broadcast to the nation, President Tinubu said that oil investors are coming back to Nigeria.
He said; “Our once-declining oil and gas industry is experiencing a resurgence on the back of the reforms I announced in May 2024 to address the gaps in the Petroleum Industry Act. Last month, we increased our oil production to 1.61 million barrels per day, and our gas assets are receiving the attention they deserve. Investors are coming back, and we have already seen two Foreign Direct Investments signed of over half a billion dollars since then.
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“Fellow Nigerians, we are a country blessed with both oil and gas resources, but we met a country that had been dependent solely on oil-based petrol, neglecting its gas resources to power the economy.
We were also using our hard-earned foreign exchange to pay for and subsidise its use. To address this, we immediately launched our Compressed Natural Gas Initiative (CNG) to power our transportation economy and bring costs down.
This will save over two trillion Naira a month, being used to import PMS and AGO and free up our resources for more investment in healthcare and education.
“To this end, we will be distributing a million kits of extremely low or no cost to commercial vehicles that transport people and goods and who currently consume 80% of the imported PMS and AGO.
“We have started the distribution of conversion kits and the setting up of conversion centres across the country in conjunction with the private sector. We believe that this CNG initiative will reduce transportation costs by approximately 60 per cent and help to curb inflation.”
Banking
FBN Holdings On Course For AGM
Plans are in top gear for the 11th Annual General Meeting (AGM) of the FBN Holdings Plc.
The management made this disclosure in a notice it filed with the Nigerian Exchange Limited (NGX) on Thursday, where it averred that it has not been served with any court order against the proposed AGM.
According to notice, which was signed by the acting Company Secretary, Adewale Arogundade, FBN Holding said, “The attention of FBN Holdings Plc (the Company) has been drawn to recent media reports purporting that the Company has received a Court Order stopping it from holding the Annual General Meeting (AGM) scheduled for August 15, 2023.
“We confirm that this assertion is a false narrative as the Company has, as at the date hereof, not been served with any court order to stop the forthcoming AGM.
“Suffice to mention that the AGM is a statutory meeting of Shareholders that must be held in accordance with the law, further to which the Company will notify the regulators and the public as appropriate if there is any lawful order to restrain the Company from conducting same.
“We hereby assure our esteemed Shareholders that the AGM shall hold on August 15, 2023, as planned and we look forward to their attendance and active participation at the meeting.”
However, court orders published in national dailies showed that the Federal High Court in Lagos had issued an order against the financial institution, barring it from holding its 11th AGM.
The order was entered pursuant to a petition by Olusegun Onagoruwa, in suit No: FHC/L/CP/1271/2022. It was addressed to the bank and some other bank officials.
It read, “Take notice that unless you obey the directives in the judicial order contained in the order made on July 15, 2022, by the Federal High Court, Lagos, by refraining from proceeding with the 11th Annual General Meeting of FBN Holdings Limited proposed for August 15, 2023, from seeking approval to issue or raise share capital in any manner whatsoever, from appointing or confirming the appointment of new directors, or in any other manner taking any step towards implementing, actualising enforcing resolution of the 10th Annual General Meeting of FBN Holdings Plc held on June 20, 2022, or in any other manner overreaching, disobeying or undermining the said order of a court, you will be guilty of contempt of court and you will be liable to be committed to prison and to there imprisoned.”
Biztellers brought you a report that a segment of shareholders had staged a protest at the headquarters of the bank on Monday, calling for the AGM to be held, as well as soliciting regulatory interventions.
It is expected that at the AGM, FHN Holdings is poised to breathe life into plans to seek shareholders’ approval to raise N150bn fresh capital via a rights issue and elect new directors including billionaire, Femi Otedola and Samson Ariyibi among other resolutions.