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CSL Emerges New Stockbroker To FG

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CSL Stockbrokers Limited, a subsidiary of FCMB Group Plc, has emerged as the new stockbroker to the Federal Government.
The appointment of the firm, as announced by the Debt Management Office (DMO) on February 18, 2020, followed an open competitive bidding process in which other stockbrokers participated.
With the appointment, CSL Stockbrokers now has the mandate to execute transactions of the Federal Government on the Nigeria Stock Exchange (NSE).
This includes posting bid and offer prices of government securities, supporting the DMO’s objective of promoting the trading of Federal Government securities on the Exchange and attracting more retail investors to the domestic capital market.
CSL Stockbrokers, rated as one of the top five stockbroking firms in Nigeria, provides institutional and corporate brokerage services to investors and select issuers. At the heart of the firm is a robust research platform that supports local and international investors who desire in-depth coverage of the Nigerian capital market and the economy.
In a statement, the DMO said as government stockbroker, CSL Stockbrokers is mandated to build upon the achievements already recorded by increasing the participation of retail investors in all Federal Government Securities, such as Bonds, Sukuk, Savings Bond and Green Bonds listed and trading on the NSE.
The DMO added that “the appointment of CSL as the government stockbroker is a further demonstration of the commitment of the DMO to the development of the domestic market, in particular, promoting liquidity, as well as, growing and diversifying the investor base’’.
Commenting on the appointment, the Chief Executive Officer of CSL Stockbrokers, Mr. Abiodun Fagbulu, described the development as another milestone in the commitment of the firm to be the investment management services provider of choice in sub-Saharan Africa, driven by deep market knowledge and global standard investment management expertise.
According to him, “CSL Stockbrokers consider this appointment as an opportunity to contribute to the growth and development of the domestic capital market in a way that is sustainable and profitable to investors’’.
Analysts are of the opinion that CSL Stockbrokers, which has over 30 years operating history in the capital market with consistent impressive performance, is well positioned to support the DMO, with regards to meeting the government’s financing needs in a prudent manner that supports economic development while proactively managing the associated risks.
CSL Stockbrokers Limited was established in 1977. It is a subsidiary of FCMB Group Plc, one of the leading financial services institutions in Nigeria with subsidiaries that are market leaders in their respective segments.
The group, which is listed in the prestigious NSE-30 Index in terms of market capitalisation and liquidity has consistently witnessed impressive performance and growth among all key indices, especially those around profitability, deposits, customer numbers and assets under management.

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15.5% MPR Increase’ll Control Inflation – CBN

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The Central Bank of Nigeria
(CBN) says its Monetary Policy Committee’s decision to increase Monetary Policy Rate (MPR) is to control rising inflation.
CBN’s Director, Monetary Policy Department, Hassan Mahmoud, stated this, midweek, at a post-MPC briefing tagged “Unveiling Facts behind the Figures’’.
Recall that the MPC, in its 287th meeting on Tuesday, had increased the MPR by 150 basis points, from 14 per cent to 15.5 per cent.
The MPR is the baseline interest rate in an economy on which other interest rates within that economy are built on.
CBN Governor, Godwin Emefiele, had explained that the decision was informed by persistent rise in inflation rate and fragile economic growth.
Mahmud had explained further that the MPC got to a point where stringent measures have to be taken to control inflation.
He said the committee took cognisance of global and local economic issues in arriving at its policy decisions.
“We raised the MPR because it is necessary to do so. The quantity of money in the system was too much for the economy to absorb”, he said.
He continued that monetary policy tools were meant to deal with short term risks, adding that the idea was to make the cost of funds expensive to drive down inflation.
According to Mahmud, the stimuluses that governments across the world provided for their citizens during COVID-19 increased the ability of people to spend, thereby, creating challenges with global supply.
“A lot of households and small businesses were injected with stimuluses; the U.S did two trillion dollars, Nigeria did about five trillion Naira, these increased the ability of people to spend.
“But the supply side could not meet up with the demand because that volume of injection was far more than the regular intake for those economies, this made prices to go up,’’ he said.
He also blamed the Russian-Ukraine war, as well as the resurgence of COVID-19 in China as responsible for rise in global inflationary trend.
“That region accounts for more than 50 per cent of global commodity supply and 38 per cent of global oil and gas supply.
“The war resulted to some shortages which made prices to go up. Then the COVID-19 lockdown in China. The country is the largest importer of commodities across the globe,’’ he said.
Speaking on the various economic intervention initiatives by the apex bank and the prospect of recouping the funds, the Director, Development Finance Department, Dr Yusuf Yila, said about nine trillion Naira had been invested in the various development finance interventions.
He, however, said all the monies would be recovered.
According to Yila, N9.3 trillion has been invested in various development finance interventions, out of which N3.7 trillion has been repaid.
“Most of the loans are still under moratorium, especially those in manufacturing. Manufacturing forms the largest part of our portfolio, about 31 per cent,’’ he said.
He said one of the best-performing interventions was the Commercial Agriculture Credit Scheme, where out of the N800 billion that was lent out, about N700 billion had been repaid.
Yila said that through the flagship agriculture intervention scheme, the Anchor Borrowers Programme, one trillion Naira had been lent out to smallholder farmers, while about N400 billion has so far been recovered.
According to him, the department will restrict intervention to critical sectors like the SMEs and the electricity sector for now.
Speaking on the depreciation of the Naira, the Director, Trade and Exchange Department, Mrs Ozoemena Nnaji, said the apex bank was taking steps to firm up the currency.
Nnaji said that demand for foreign exchange outstripped supply currency, adding that the CBN was doing a lot to mop up supply.
“One of the steps is the Naira for dollar remittance drive, which has resulted to a huge increase in diaspora remittances.
“There is also the RT200 bringing in forex. Repatriation has gone up from 20 million dollars in the first quarter to about 600 million dollars in the second quarter.
“In this third quarter we are looking at more than one billion dollars of repatriated inflows,’’ she said.

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FG Probes IOCs’ Oil Exploration, Production 

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The Federal Government, has commenced a probe of the exploration and production activities of international and local oil companies as part of measures to address the massive oil theft in Nigeria.
It announced this through its Nigerian Upstream Petroleum Regulatory Commission (NUPRC), saying it would do the needful to challenge the narrative and halt further degeneration by ensuring transparency in hydrocarbon accounting.
“One of the steps, in line with its (NUPRC) technical and regulatory powers, is to probe into the operational and commercial activities of exploration and production companies operating within the country,” the commission’s Chief Executive, Gbenga Komolafe, stated in a statement he personally signed.
He noted that this was “to ascertain the level of compliance with the terms and conditions in their (oil firms’) operational contracts, and the challenges impeding expected deliveries.
“The Commission will particularly be interested in the mode of operation of the companies in relation to the approvals as per their operational licences, the level of conformity with the technical provisions and production terms,  their level of investments to enhance capacity utilisation, and the challenges they are facing, especially those contributing to the current unacceptable situation.
“Beginning from Wednesday, September 28, the Commission will be engaging all the exploration and production companies individually to get to the root of the current situation as it believes strongly that there might be more fundamental issues in the industry affecting expected output and deliveries beyond the much touted issue of crude theft”.
Komolafe said already, invitations had been extended to all the operators for  engagement during which they would be expected to present their work programme performances, acreage status and divestment plans (if any).
They would also present their field development plan, implementation status, upstream investment in the last five years, exploration activities including geophysical acquisition/processing/reprocessing, leads and prospects maturation plans; and exploratory wells drilled in the last five years.
NUPRC further stated that during the engagements, the companies would be required to present their reserve status, life index, current reserves replacement ratio and reserves growth strategy.

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MWUN Threatens Service Withdrawal Over Dilapidated Quays

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The Maritime Workers Union of Nigeria (MWUN) has threatened to withdraw their services from the nation’s seaport if the issues of dilapidated quays are not addressed urgently.
This is coming barely weeks after the Minister of Transportation, Muazu Sambo, inspected the dilapidated portion of the Tin Can Island quay apron in company of some heads of maritime agencies.
Addressing journalists at a joint press conference organised by MWUN and the Nigerian Association of Road Transport Owners (NARTO), the President-General of MWUN, Adewale Adeyanju, said the dilapidated state of the quay walls was putting the lives of workers at the affected terminals at risk.
He called on the Nigerian Ports Authority (NPA) to ensure that necessary measures were put in place to fix the dilapidated infrastructure, saying the union could no longer allow the situation to deteriorate further before protesting.
“It is unfortunate that this kind of thing is happening. If you go to Port Harcourt or Warri port, we are having the same problem.
So, we are using this medium to appeal to the management of NPA to make sure that all the terminal operators do the right thing.
“They can sanction those who refuse to make their terminals safe for the workers. Otherwise, we might withdraw the services of our members as a result of that. The lives of the workers are no longer safe and injury to one is injury to all”, he said.
Adeyanju stated further that the collaboration between MWUN and NARTO would also ensure improved welfare for truck drivers and reduce cases of extortion along the port access roads.
He also said the collaboration would ensure free flow of traffic to ease cargo and vehicular movement in and out of the ports.
According to him, the partnership would not involve collection of toll along the port access roads as both parties had resolved to key into the electronic call-up system project of NPA.
“The essence of this collaboration is to support a good programme birthed by NPA – ETO. We are also going to work with other stakeholders in the port so that we can have free flow of traffic on the road.
“I am also using this opportunity to send a signal to our members that we should not go against the Memorandum of Understanding because it is binding on both parties.
“We must also ensure discipline and eschew thuggery and extortion along the port access roads”, he stated.

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