Tag Archives: Finance

Nigeria

Central Bank of Nigeria

The Central Bank of Nigeria (CBN) is the sole issuer of legal tender money throughout the Nigerian Federation. It controls the volume of money supply in the economy in order to ensure monetary and price stability. The Currency & Branch Operations Department of the CBN is in charge of currency management, through the procurement, distribution/supply, processing, reissue and disposal/disintegration of bank notes and coins.
The Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1959. Objectives of the bank as stated in the CBN Act are:

  • to maintain the external reserves of the country
  • to promote monetary stability and a sound financial environment
  • to act as a banker of last resort and financial adviser to the federal government

Nevertheless, the government through the central bank has been actively involved in building the nation’s money and equity centers, forming securities regulatory board and introducing treasury instruments into the capital market.
The CBN’s early functions were mainly to act as the government’s agency for the control and supervision of the banking sector, to monitor the balance of payments according to the demands of the federal government and to tailor monetary policy along the demands of the federal budget.

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South Africa

South Africa slips to Africa’s third-largest economy

South-Africa has been known as the continent’s second largest economy since Nigeria rebased its gross domestic product (GDP) data in early 2014. However, the International Monetary Fund’s World Economic Outlook, released in mid April 2016, revealed that the South African economy is now only the third-largest economy on the continent after Nigeria und new silver medallist Egypt.

By the end of 2015, Nigeria’s GDP was estimated at US$ 490 billion, followed by Egypt with US$ 324 billion and South-Africa with US$ 313 billion.

Egypt overtook South Africa mainly owing to the slump of its currency, the Rand. As a result, the nominal dollar value of South Africa’s GDP has dropped by an average of almost 7 percent a year over the past four years.

South Africa, however, remains the continent’s most developed economy and has a more diversified base than any other on the continent. It is ranked as an upper-middle-income economy by the World Bank –   one of the only four countries in Africa (alongside Botswana, Gabon and Mauritius).

Source: African Courier, June/July 2016

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Nigeria

First Bank of Nigeria

First Bank of Nigeria, die manchmal einfach auch als Firstbank bezeichnet wird, ist ein nigerianisches multinationales Bank- und Finanzdienstleistungsunternehmen. Es ist die größte Bank des Landes allein durch seine Vermögenswerte, die Ende des Jahrs 2014 sich auf c.a. 23.4 Mrd. USD belaufen.

Der Gewinn der Bank vor Steuern, zum Jahresabschluß am 31. Dezember 2014 betrug ca. 486.5 Mio. USD. Zu diesem Zeitpunkt unterhielt die Bank eine Kundenbasis von mehr als 10 Millionen Privatpersonen und Unternehmen. Die Firstbank erhält solide Kurz- und Langfrist-Ratings von der Rating Agentur Fitch, zum Teil aufgrund seiner geringen Exposition gegenüber notleidenden Kredite. Die Bank hält sich streng an finanzielle Gesetze und genießt ein großes Vertrauen gegenüber der nigeranischen EFCC (Strafverfolgungsbehörde gegen Wirtschafts- und Finanzverbrechen).

www.firstbanknigeria.com

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Nigeria

Nigeria is the largest economy in Africa

Nigeria is the largest economy in Africa, with a Gross Domestic Product greater than USD 500 billion. We grew steadily at over 7 per cent per annum between 2005 and 2014, but this growth has been slower in 2015. This growth was driven primarily by the non-oil sectors, such as financial services, telecommunications, entertainment, etc. Foreign direct investment (FDI) inflows have been strong, averaging USD2 billion per quarter since 2013, with over 70 per cent of this in the non-oil sectors. Nigeria’s economy is actually more diversified than it seems, with the oil sector contributing only about 14 per cent to GDP. Nevertheless, we ought to be doing more to diversify with the significant natural and human resources with which Nigeria is blessed. There is no doubt that oil has contributed substantially to Nigeria’s revenue since its discovery in 1956 and more especially, since 1970 when its price was on the upward trend. Yet, oil receipts and their management have challenged governance to the core over time in Nigeria. Deeper economic diversification is an urgent necessity to undertake structural transformation, buffer the domestic economy from externally transmitted shocks and accelerate growth accompanied by job creation. The task ahead of further diversification of the economy is enormous. We do not take it for granted. It will not happen quickly or easily and Nigeria shall be strategic about diversification. We are however encouraged by the strides that have been made in some sectors already. I will use three sectors or categories as examples:
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Nigeria

Nigeria, Others to Attract $73.5bn Foreign Investments in 2015

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By Eromosele Abiodun

Following plans by United States retail giant, Walmart to enter Nigeria’s retail market, increasing greenfield investment from China, India and South Africa, foreign investments in Nigeria and other African countries are expected to reach $73.5 billion by the end of this year.

A report by the African Economic Outlook (AEO) revealed that official remittances have increased six-fold since 2000 and are projected to reach $64.6 billion in 2015 with Egypt and Nigeria receiving the bulk of flows.

The AEO is a product of collaborative work by three international partners: the African Development Bank (AFDB), the OECD Development Centre and the United Nations Development Programme (UNDP).

Official remittances, the report added, remained the largest source of international financial flows to Africa, accounting for about 33 per cent of the total since 2010.

Conversely, the report predicted that Overseas Development Assistance (ODA) will decline in 2015 to 54.9 billion, “and is projected to diminish further”.

“More than two-thirds of states in sub-Saharan Africa, the majority of which are low-income countries, will receive less aid in 2017 than in 2014. FDI is diversifying away from mineral resources into consumer goods and services and is increasingly targeting large urban centres in response to the needs of a rising middle class.

“African sovereign borrowing is increasing. Private external flows in the form of investment and remittances are driving growth in external finance. Despite significant improvements in tax revenue collection over the last decade, domestic resource mobilisation remains low. Public domestic finance in Africa has increased more than threefold in a decade from $157 billion in 2003 to $507 billion in 2013. Compared to 2012, total tax revenue in 2013 registered a slight decrease of about 1.5 per cent mainly on account of lower resource rents, “the report revealed.

According to the report, “The report added that recent trends in African total trade flows – exports and imports – highlight a shift in trade dynamics and increasing competition from China for the African market. Although Europe remains Africa’s largest trading partner, Africa’s trade with Asia rose by 22 per cent between 2012 and 2013, while trade with Europe grew by just 15 per cent.

Manufactured exports from Europe to Africa fell from 32 per cent of the total in 2002 to 23 per cent in 2011. On the other hand, Asia’s share in Africa’s trade rose from 13 per cent of the total to 22 per cent during the same period. In 2009, China overtook the United States as Africa’s largest single trading partner.”

Source: Thisday, 12th August, 2015

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