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MONDAY 1/11/2021 – NNPC’S CONTRIBUTION TO FEDERATION ACCOUNT SLUMPS BY N13BN IN SEPTEMBER The contribution of the Nigerian National Petroleum Corporation (NNPC) to the Federation Account fell by about N13 billion in September, a document detailing the corporation’s monthly presentation to the Federation Account Allocation Committee (FAAC) has shown. It is the second most impactful development since the national oil company failed to contribute any funds in April when it started making deductions owing to its funding of subsidy on the pump price of petrol. The data showed that since May, the corporation’s funding of the Federation Account had Increased steadily, but dropped from N80.030 billion in August to N67.533 billion, a difference of about N13 billion. Before the latest development, the contribution jumped from N38.608 billion to N47.1 billion between May and June and from N67.2 billion to N80 billion in August, before falling to N67.5 billion in September. In all, the information showed that the corporation had done very badly this year in terms of its statutory funding of the Federation Account, having just been able to pay N496.8 billion, leaving a huge deficit of N1.386 trillion as at September this year. This is out of its yearly projection of N2.51 trillion total payment for 2021 and a monthly contribution of N209.3 billion as well as a supposed year-to-date (January-September) funding to the tune of N1.88 trillion. While Nigeria’s earnings from oil and gas sales dropped by N87.41 billion between July and August this year, the summary indicated that the total oil and gas sales in July was N271.215 billion but dropped to N183.81bn in August, representing a decrease of 32.23 per cent. As reported earlier, the NNPC will also deduct N163.73 billion from its remittance to FAAC in the coming month, which is a combination of N123.73 billion on petrol subsidy and another N40 billion deferred deduction. Similarly, in October, it netted off N149.28 billion from its remittances, while pipeline repairs stood at N1.67 billion, with domestic crude oil sales at N265.13 billion. As reported by THISDAY, NNPC deducted N149.2 billion from the federation’s joint account in October, while it withheld about N173.1 billion the previous month to pay for what it terms under-recovery or value shortfall.   TUESDAY 2/11/2021 – STOCK MARKET LOSES N32.26BN AS INVESTORS TAKE PROFITS The equities market of Nigerian Exchange Limited slid by N32.26bn at the end of trading on Monday as investors cashed in on recent price appreciation. The NGX All-Share index rose by 0.15 per cent, closing at 41,976.79 basis points from 42,038.60bps on Friday while the market capitalisation of stocks declined from N21.94tn to N21.91tn. Market activities traded negative as the volume of shares traded slumped by 66.53 per cent to 378.15 million units valued at N3.24bn in 6,384 deals, compared to 1.13 billion shares worth N13.78bn in 5,458 deals on Friday. Analysing by sectors, the NGX Oil & Gas, Banking, and Consumer Goods indices declined by 1.8 per cent, 0.4 per cent, and 0.3 per cent respectively while the NGX Insurance and Industrial Goods indices recorded gains of 1.9 per cent and 0.1 per cent respectively. Market sentiment, as measured by market breadth, was largely negative as 33 firms’ depreciated while 20 tickers saw gains in share price. Eterna Plc recorded the biggest loss on Monday as its share price tumbled by 9.94 per cent to close at N7.79 per share. UPDC lost 9.44 per cent to close at N1.63 per share. Atop the gainers’ chart was Fidson Healthcare Industries Plc as its share price climbed by 9.92 per cent to N6.76 at the end of trading on the floor of the NGX.   WEDNESDAY 3/11/2021 – CBN, SEC SANCTION FIVE BANKS OVER FOREX OFFENCE, MONEY LAUNDERING The Central Bank of Nigeria and the Securities and Exchange Commission have sanctioned five major banks for committing over 20 various infractions, including the violation of foreign exchange market and anti-money laundering regulations. The banks are Guaranty Trust Holding Company Plc, United Bank for Africa Plc, Access Bank Plc, Stanbic IBTC Holdings Plc and Fidelity Bank Plc. The five lenders reported a combined fine of N1.46bn, according to the half-year 2021 financial results filed with the Securities and Exchange Commission. In line with regulatory rules, banks are required to include sanctions and fine imposed on them by regulatory agencies in their audited financial reports. Among the five lenders, GTCO got the highest fine, running to over half a billion naira. Specifically, the CBN fined GTCO N692m for violating its rules on certain forex transactions carried out by some betting and gaming companies. The tier-1 lender was also fined N2m for non-refund of interest on debit of non-interest-related charges imposed on non-funded accounts. UBA was fined the sum of N273m for only two market infractions. It was fined N260m for forex documentation lapses in respect of some customers’ accounts. The regulator also asked the lender to pay N13m for non-verification of a customer identity and delay in filing the related transaction report.   THURSDAY 4/11/2021 – NIGERIAN BANKS TO STOP ACCEPTING OLD £20, £50 NOTES DEC 31 Deposit Money Banks in Nigeria have issued a deadline of December 31, 2021 for the acceptance of old £20 and £50 notes to enable proper conclusion of cash evacuation. One of the banks, Fidelity Bank Plc, disclosed this in an email to its customers on Wednesday titled ‘Withdrawal of old 20 and 50 GBP notes from circulation’. It said, “The Bank of England has announced the withdrawal of paper £20 and £50 notes after September 30, 2022. A year’s notice has been provided to customers and the global banking community. “In view of this, Fidelity Bank, alongside other Deposit Money Banks in Nigeria, has issued a deadline of December 31, 2021 for acceptance of the stated denominations from the public to enable proper conclusion of cash evacuation. “Thus, we advise you to use or deposit your paper GBP notes into your Fidelity Bank domiciliary account by December 31, 2021 to avoid a loss in the value of your money.”   FRIDAY 5/11/2021 – NAIRA DEPRECIATION DISASTROUS, SAYS FIRST FEMALE SAN, SOLANKE The first female Senior Advocate of Nigeria, Chief Folake Solanke, has described the depreciation of the naira as disastrous, calling on the Central Bank of Nigeria to prevent a further decline of the currency’s value. Solanke made the call on Thursday while delivering her keynote address during the 20th anniversary of Women in Management, Business and Public Service in Lagos. She said, “About five decades ago, the naira was as strong as the United States dollar and at par with the pound sterling. Now, unfortunately, the naira is nearly 600 to a dollar. It is unspeakable. “The Structural Adjustment Programme of the International Monetary Fund and its cousin, the World Bank, started the naira descent. People are now starving because of the astronomical cost of food items. “This calamity is disastrous for the country. WIMBIZ can engage Mr Godwin Emefiele, the governor of the CBN, to stop the bleeding of the naira.” She urged WIMBIZ to advocate the restoration of the naira and a reasonable exchange rate. “It is possible. Some people say that by December, it would be N750 to a dollar. It must not happen. We should not allow the naira to sink into N1,000 for a dollar and then sink to nothingness,” she added.