CBN releases new forex rules, ends BDCs funding; Olam targets $1 billion share of Nigeria’s flour milling market; World Bank projects 4.6% growth for Nigeria’s economy . . .
CBN releases new forex rules, ends BDCs funding
A SET of fresh regulations on foreign exchange (forex) saw to the Central Bank of Nigeria (CBN) yesterday ending the programme of funding bureaux de change weekly. The scheme which has been in operation for the past 11 years cost the CBN $8.6 billion yearly based on $60,000 per operator.
But the apex financial regulator has permitted commercial banks to begin accepting cash deposits of foreign exchange from their customers. The decision, according to CBN, is not intended to be punitive but rather to ensure it is better able to carry out its mandate effectively and efficiently, which guarantees preservation of the nation’s scarce commonwealth.
However, the operators, under the aegis of Association of Bureau de Change Operators of Nigeria, said while it would appreciate the end of the programme, it would not accept the blanket generalisation of the group as bad. The Acting President of the group, Alhaji Aminu Gwadabe, told The Guardian that the action of the CBN amounted to a devaluation of the currency, as the dollar would soon be exchanged for as high as N400.
Olam targets $1 billion share of Nigeria’s flour milling market
WITH the acquisition of BUA Group’s milling business in Nigeria, Olam International Limited has expressed optimism of doubling its total wheat milling capacity in sub-Saharan Africa to approximately 7,640 tonnes per day or 2.78 million tonnes yearly.
According to the firm, achieving the target will help the firm control a sizeable share of the Nigerian flour market which is presently in excess of $2 billion and is expected to hit five million tonnes by 2020.
Under the BUA deal, Olam acquired Amber Foods Limited, which through its 100 per cent owned subsidiary Quintessential Foods Nigeria Limited owns the wheat milling and pasta manufacturing assets of the BUA Group in Nigeria for a total enterprise value of $275 million.
A statement from the firm explained that the BUA Group, a diversified foods and infrastructure business group in Nigeria, is among the top five wheat millers in the country with wheat milling and pasta manufacturing capacities of 3,760 and 700 metric tonnes per day (TPD) respectively.
“The assets to be acquired include two wheat mills and a pasta manufacturing facility in Lagos, a non-operating mill in Kano in the North of Nigeria, and a wheat mill and a pasta manufacturing plant under construction in Port Harcourt in the Southeast of Nigeria.
World Bank projects 4.6% growth for Nigeria’s economy
THE latest report by the World Bank as projected that Nigeria’s economic growth index would hit 4.6 per cent in 2016, even as it expected that economies would pick up in other oil exporting countries, on the assumption that oil prices will stabilise.
The group, in its January 2016 Global Economic Prospects obtained by The Guradian yesterday, also noted that weak growth among major emerging markets will weigh on global growth in 2016, but economic activity should still pick up modestly to a 2.9 per cent pace, from 2.4 per cent growth in 2015, as advanced economies gain speed.
The Sub-Saharan African region is forecast to accelerate to 4.2 per cent in 2016 from 3.4 per cent in 2015 as commodity prices stabilize. Economic activity will vary across Sub-Saharan Africa, with consumption growth remaining weak in oil exporting countries as fuel costs rise, while lower inflation in oil importing countries helps boost consumer spending.
Nigeria is forecast to expand 4.6 per cent after growing by 3.3 per cent last year while South Africa is expected to advance only modestly to 1.4 per cent growth from 1.3 per cent in the year just ended,” it noted.
NCC mulls national mobile roaming strategy for operators
PLANS are in the pipeline by the Nigerian Communications Commission (NCC) to implement a national mobile roaming strategy that will help operators in the country strengthen their operations and compete favourably.
The national mobile roaming is the ability of a cellular customer to automatically make and receive voice calls, send and receive data, or access other services, including data services, when travelling outside the coverage area of the home network, by means of using a visited network.
According to the Executive Vice Chairman, Prof. Umar Danbatta, in a document title: ‘Consultation Paper on National Mobile Roaming’, national mobile roaming features in several communication licences but has not yet been utilized in the country.
Danbatta said even though it was technically possible to provide facility for domestic roaming, appropriate legal and regulatory framework have to be in place in order to encourage as well as assist the operators in realising roaming arrangement between them without any uncertainty.
MBR | Business news