Business
Inflation, Interest Rates Fall
Indications emerged at the weekend that the current banking sector reforms and the relative stability in the prices of crude oil may have returned Nigeria to the path of economic stability with the remarkable reduction in inflation and interest rates.
The nation’s annual interest rates fell from 11 per cent in August to 10.4 per cent in September, thus raising the prospect of stability in the nation’s economy.
Data released by the National Bureau of Statistics at the weekend showed that the nation’s annual inflation dropped to 10.4 per cent on a 12-month basis in September from 11 per cent in August.
“The composite consumer price index or CPI rose 10.4 per cent year-on-year in September 2009 and it is slower than the 11 per cent increase recorded in the previous month,” the agency said in a report, giving no reason for the decrease.
“The monthly change of the CPI was 0.5 per cent increase in September 2009,” it added.
According to the bureau, the urban All Items Index rose by 0.2 per cent while the corresponding Rural Index increased by 0.7 per cent in September, when compared with the preceding month.
The bureau stated that the year-on-year average consumer price level as at September 2009 for urban and rural dwellers rose by 8.1 per cent and 11.5 per cent respectively.
Nigerian inflation had risen steadily since the second quarter of last year, standing at 9.7 per cent in May before soaring to 14 per cent in July owing to the effects of the global food crisis.
The Federal Government had managed to slow inflation for most of 2006 and 2007 through belt-tightening measures to achieve a single-digit rate.
Such measures included a stable exchange rate for the national currency, as well as fiscal discipline.
Checks also showed that the CBN intervention has also forced down interest rates which was pegged at 21 per cent earlier in the year. Interest rate now hovers between 18.85 and 19.89 per cent.
According to the latest figures posted on the Money Market Association site, Prime Lending rate stood at 18.85 while Normal lending was put at 19.85 per cent respectively.
In specific terms, the Nigerian Interbank Offer Rate (NIBOR) for call fell to 4.75 per cent by the end of last week from 10.37 per cent at which it closed the previous week ended October 9, 2009.
The 7-day NIBOR closed the week at 7.41 per cent from 12.50 per cent. The 90-day paper closed the week at 13 per cent from 16 per cent, while 180 day instrument dropped to 14.50 per cent as against 17.58 per cent the previous week.
Explaining the trading for last week, Head, Treasury Sales, Fidelity Bank Plc, Mr. Uvic Ogban said that the N200 billion bailout funds released to the second batch of troubled banks hit the system last week Thursday, thereby dragging down the rates.
“The market responded to the bailout fund. The other influence on the rates was the anticipation by dealers that the market will be awash with funds up till this week. The meeting of the Federation Account and Allocation Committee (FAAC) was held last week. It is expected that the fund will hit the system in the current week. In addition to the inflow expected from the economic stimulus package. Since the market respond to information, the foregoing will help sustain the low rates in the current week,” he said.
During an interactive session with journalists at the recently concluded World Bank/ International Monetary Fund (IMF) meetings in Istanbul, Turkey, CBN Governor, Lamido Sanusi, said the banking watchdog has been able to achieve macroeconomic stability, especially with both the exchange and interest rates.
He noted that when he became the CBN governor last June, inflation rate was 15 per cent but as at end of August, it had fallen to 11 per cent.
Sanusi said inflation was likely to go to nine per cent by the end of the year.
“When I became governor of Central Bank, inflation rate was 15 per cent. End of August, it was 11 per cent. The gap between the official rate and parallel rate was 25 per cent: as at today, it is 2.98 per cent. All short term money market rates today are lower than they were in December 2008.
“We’ve delivered macroeconomic stability. We’ve checked stable exchange rate-in fact, in the last one week; I have been fighting against the rapid appreciation of the naira because of return in confidence. It’s just that in the management of the macro economy, the CBN has been so successful and we’ve done all of these in the middle of all those financial turmoil.
“There’s been no spike on inter-bank rates. There’s been no spike on exchange rates. There’s been no capital flight and inflation has not gone up. Those are the facts the president mentioned in his Independence Day speech: Those achievements of his administration nobody talks about. Inflation is likely to go to nine per cent by the end of the year. Look at our exchange reserves, the foreign reserves- we stemmed the outflow: we were losing foreign reserves at the rate of $2 billion per month. In the last two months we have lost nothing,” he said.
Business
Wigwe’s Luxury Yacht Goes For N8.74 Billion After Legal Proceedings
The daughter of late Nigerian banking executive, Herbert Wigwe has sold her father’s luxury yacht for $6.5 million which is the equivalent of N8.74 Billion following legal proceedings involving her, Otutochi Wigwe, and the company holding the vessel, Grosvenor Marine Ventures Limited.
This was contained in an online report obtained by The Tide Source in Port Harcourt recently.
The Source further clarified that $6. 5 Million dollars or N8.74 Billion was the asking price as at March this year but was unable to prove, if the said amount was exactly what the vessel went for.
The yacht, known as Chitochi, is a 2016 Custom Line 108 superyacht measuring approximately 33 metres (108 feet) in length. The transaction was handled by international yacht brokerage firm IYC, with its sales and charter consultant, Mark Elliott, overseeing the sale.
The disposal of the high-value vessel followed legal steps taken to address the corporate status of Grosvenor Marine Ventures Ltd., the company through which the yacht was held.
Otutochi Wigwe reportedly approached a court in the British Virgin Islands (BVI) to secure the restoration of the company to the corporate register, a move that enabled the necessary legal steps towards the sale of the vessel.
The proceedings were central to resolving the corporate issues affecting the company and facilitating the transaction, underscoring the legal complexities that may arise when valuable assets are held through corporate entities in foreign jurisdictions.
The sale is also significant in the context of estate administration, as luxury yachts require substantial financial commitments to maintain, even when they are no longer actively used by their owners or beneficiaries.
Such vessels typically attract considerable expenses, including crew salaries, insurance premiums, berthing charges, routine servicing and other maintenance costs, making their continued ownership a major financial responsibility.
Beyond the recurring expenses, luxury yachts are depreciating assets that may lose value over time. Their disposal can therefore form part of a strategy to preserve estate value, reduce liabilities and convert an expensive asset into liquid funds.
Wigwe, who was the former Group Chief Executive Officer of Access Holdings, died on February 9, 2024, in a helicopter crash in California, United States, alongside his wife, Chizoba; their son, Chizi; and former Nigerian Exchange Group chairman, Abimbola Ogunbanjo.
His death was widely mourned across Nigeria’s banking and business communities, where he was recognised for his contributions to the financial services industry, entrepreneurship and philanthropy.
Wigwe’s passing left behind an estate whose administration involves the management of assets and other financial interests, a process that can require legal and financial decisions to protect the interests of the estate and its beneficiaries.
The sale of Chitochi highlights the challenges associated with managing high-value assets held through corporate structures, particularly where the relevant companies and legal proceedings fall under different jurisdictions.
The $6.5 million transaction brings the yacht’s ownership chapter to a close while illustrating how legal procedures, financial considerations and estate management can intersect in the administration of the assets of a prominent business figure.
‘’We determined to get all our equipments and machinery functioning as we progress. For now we’ve about 105 workers, comprising daily paid harvesters and regular staffs. But aside these 105 staffs we also employ daily slashers who for now are about 100.
“During peak periods, hopefully on or before January 2026 we hope to increase our work force for maximum production”, the firm’s management Stated.
King Onunwor
Business
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Business
Traders Decry Continuous Increase In Prices Of Foodstuffs
Some traders at the Rumuwoji Market popularly known as Mile 1 Market have decried the continuous increase in the prices of food stuffs and other items in the ember season.
This was made known by the traders when The Tide visited the market recently.
The traders revealed varying changes in the prices of foodstuffs, with some commodities recording higher increase than others .
A trader Mrs Charity Obinna, at the market, said the price of yam remained the same last week and this week compared to the prices from last month to this month, adding that only a difference of about N100 to N200 was seen.
Another trader, Chukwuebuka Livinus who deals on garri, reported that the prices of some food commodities had been changing frequently.
According to him, the price of a bag of garri increased from N45,000 last week to N58,000 this week, representing an increase of N13,000.
Livinus described the increase as scary and called on the government to do something about it, especially as we get closer to the festive period.
A trader that deals on vegetables, Mrs Joy reported that a significant increase in the prices of pepper rose from N20,000 last week to N40,000 this week.
Similarly, the price of a bag of melon (egusi) increased from N420,000 toN490,000 this week.
In a separate report, Mrs Charity Obinna said that foodstuffs were generally cheaper last month than this month, with price differences ranging from N150 to N200 for some items.
Meanwhile, Giff Okoro reported a decrease in the price of tomatoes. According to her, a quantity of tomatoes that cost N45,000 last month now sells for N25,000, indicating a reduction of N20,000.
Another trader, Usman Ibrahim said the cost of transporting goods from the communities to urban areas where they are sold is one of the major reasons for high cost of goods.
He said transport cost has doubled due to the cost of petroleum products in Nigeria, adding the whole cost is part of the goods because “entrepreneurs must cover their cost and make their gains .
Ibrahim called on the government to help farmers and traders even with little capitals to expand and sustain their business.
Another trader, Mrs Choice Promise a fish retailer said a cartoon which sold at #35,000 last week now sells at #50,000 .
Promise complained that there is no gain or profit because the price has drastically increase and most people cannot afford to buy fish again.
“Mr. President’s Renewed Hope Agenda recognizes that economic ambition requires dependable infrastructure,” Tegbe said.
He added that investments in electricity infrastructure would strengthen the foundations for business expansion, employment and economic growth.
The Kankia substations comprise two 60 MVA, 132/33 kilovolt (kV) facilities designed to strengthen the transmission network serving Katsina State and neighbouring areas.
Tegbe said the infrastructure would improve the network’s ability to distribute available electricity, supporting commercial activities and household welfare.
He also urged residents to protect the facilities against vandalism and other activities that could disrupt electricity infrastructure, asking them to report suspicious activities to TCN or security agencies.
Katsina State Governor, Dikko Umaru Radda, described the project as a significant investment in the state’s electricity infrastructure.
Radda stated that improved electricity supply could support industrial development, economic growth and public service delivery.
He further commended the President, the Federal Ministry of Power and TCN for completing the project.
It would be noted that the latest projects come amid a broader government’s drive to address bottlenecks in Nigeria’s electricity transmission network, which has constrained the amount of electricity that can be delivered to distribution companies and end users.
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