Business
FSDH Securities forecasts decline in Nigeria’s GDP to 7%
FSDH Securities Limited, an investment banking firm in Nigeria, has reviewed its upper limit of the Gross Domestic Product (GDP) growth forecast downward to 7 per cent in 2012 from 7.5 per cent.
FSDH Securities Limited, an investment banking firm in Nigeria, has reviewed its upper limit of the Gross Domestic Product (GDP) growth forecast downward to 7 per cent in 2012 from 7.5 per cent.
With this, its GDP growth rate forecast range was put at between 6.5 per cent and 7 per cent.
In its half year ‘Economic and Financial Market Review and Outlook for the remaining part of 2012, the company stated that inflation in the remaining part of the year would be influenced by the anticipated increase in import duties in wheat and rice, the prices of food in the international market, fiscal expansion, and supply shortages in the country due to low production, amongst others.
“However, the expected moderation in global commodities prices will lower the impact of imported inflation. Thus we expect inflation rate to hover around 12.5 per cent – 13.20 per cent to end the year,” the report said.
“With the price of Bonny Light at about US$100/b, we expect Nigeria’s foreign reserves to increase by about 17.10 per cent to US$38.55billion which should be sufficient to finance about five months of imports cover. Also, given the price of oil at about US$100/b there may not be need for the FGN to grow its debt portfolio excessively, but may grow it aggressively if oil price falls sharply.
“We expect oil price to remain somewhat high, thus we think public debt will only grow by about 6.53 per cent in 2012 to about N7.34 trillion. The growth in debt will partly be driven by the current high interest rate that government is paying on its domestic debt. The debt to GDP is expected to be in the region of 18.03 per cent.
“Nigeria should maintain a relatively stable exchange rate in 2012. The possibility of marginal depreciation cannot be ruled out. We expect the exchange rate in the region of N158.50/US$1 to end the year,” it added.
According to FSDH Research, in addition to the import substitution strategy of the Federal Government of Nigeria (FGN) as outlined in the 2012 Budget Speech, the major events that will shape economic development in the remaining part of 2012 are: The deregulation of the downstream sector of the oil and gas Industry and the passage of the Petroleum Industry Bill (PIB) into law; The privatisation of the Power Holding Company of Nigeria (PHCN) in order to improve electricity generation, transmission and distribution in the country.
In a sharp turn of events, the Nigerian Naira took a significant tumble on Tuesday, plunging to N1,416.57 against the US dollar at the official market.
This staggering drop of N62.36 from the previous trading day represents a 4.60 percent loss, sparking concerns among investors and analysts alike.
Data from the FMDQ Exchange, overseeing the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed this unsettling trend.
Despite the currency’s downward spiral, trading activity surged, with the daily turnover soaring to $160.77 million, compared to Monday’s $84.83 million.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira’s performance remained volatile, trading between N1,445 and N1,301 against the dollar, underscoring the currency’s precarious position in the market.
The management of Dangote Cement Plc., Ibese Plant has assured that it would continue to complement the efforts of the Ogun State Government in the development of its host communities through capacity building for the people, especially the youths.
In a statement, the company declared its commitment to development for the prosperity of the people and host communities for which it is placing a premium on the developmental needs of the communities and empowerment of their indigenes.
During a capacity development workshop for Host Community Representatives, General Manager, Human Asset Management/Admin, Aina Olugbenga, said, Dangote Cement remained committed to implementing value-adding empowerment programs to uplift the people and develop the host communities.
The workshop themed: “Team Building, Inclusivity and Stewardship, a panacea to effective Community Representatives” according to him, was to equip the Community reps with the right skills to offer quality representation for their people. He stated: this capacity building workshop is aimed at developing and strengthening the skills, instincts, and abilities of the communities through their representatives adapt and thrive in a fast-changing world.
Olugbenga noted that the workshop is part of the management’s strategy to improve relationships with the host communities and urged the participants to leverage the knowledge acquired from the workshop to improve service delivery to their people and the Cement plant.
According to him, Dangote Cement, Ibese Plant is committed to building the capacity of the people and institutions in the communities by identifying skill gaps and partnering to up their skills for economic prosperity. This, he stated, was in anticipation that other stakeholders will continue to play their part by partnering and supporting the Company to ensure peaceful co-existence and shared prosperity for all.
Said he, “Apart from reciprocating the good gesture of Dangote Cement by ensuring peace at all times and keeping an open and trusting mind towards the organization, we also desire from our community leaders and representatives who are present here, the ownership of all Social Investment programme, be it training or infrastructure because they are meant for the betterment of our people.”
On behalf of the Community Representatives, Hon. Dayo Ogunyinka thanked the Dangote Cement management for the workshop while assuring continued commitment to effective, efficient and selfless discharge of their roles and responsibilities to their various communities and the Plant.
The Nigeria Deposit Insurance Corporation (NDIC) has announced revisions to the Maximum Deposit Insurance Coverage for banks operating within the country.
NDIC’s Managing Director, Bello Hassan, disclosed the updated coverage benchmarks during a media briefing in Abuja on Thursday.
The coverage for Deposit Money Banks has been increased from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ pass-through from N500,000 to N5 million per subscriber.
Hassan underscored that the objective of the update is to enhance depositor safety, foster public trust, promote the inclusivity of financial services, and ensure the overall stability of the financial sector.
More to follow.. . .. .
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