Category Archives: Finance

Facebook Quarterly Earnings Doubled in Three Years and Hit $17.7bn in Q1 2020

With more than 2.6 billion monthly active users as of the first quarter of 2020, Facebook represents the leading social networking service based on global reach. The constantly growing user base has led to a surge in the company’s revenue over the years.

Interest on SME loans’ll hit nine per cent — CBN

Interest rates on loans to the Small and Medium Enterprises to cushion the effects of the coronavirus on their operations introduced by the Central Bank of Nigeria will rise to nine per cent from five per cent in March 2021.

The CBN disclosed this in its guidelines for the implementation of the N50bn Targeted Credit Facility.

Nigeria’s Foreign direct investment dropped to $214.25m in Q1 – NBS

Foreign Direct Investment into Nigeria dropped to $214.25m in the first quarter of 2020 from $257.25m in the fourth quarter of 2019.

The National Bureau of Statistics disclosed this in its report on ‘Nigerian capital importation’ for the first quarter of 2020 on Tuesday.

Value of the World`s Top 5 Stock Exchanges Dropped by $1.3trn in Q1 2020

The coronavirus outbreak has had an enormous impact on the global stock exchange market, causing sharp price falls, and hundreds of billions wiped off values of indexes.

According to data gathered byBuyShares, the market cap of the world’s five largest stock exchanges dropped by $1.3trn in the first quarter of 2020, falling from $52.05trn in January to $50.75trn value in March.

GSK Nigeria declares N657.7m dividends

The Board of Directors of GlaxoSmithKline Consumer Nigeria Plc has recommended distribution of N657.7 million to shareholders as cash dividends for the 2019 business year. Shareholders will receive a dividend per share of 55 kobo.

Key extracts of the audited report and accounts of GSK Nigeria for the year ended December 31, 2019 showed that turnover rose from N18.41 billion in 2018 to N20.76 billion in 2019.

United States Treasury Urges Independent Investigation Into AfDB Head

U.S. Treasury Secretary Steven Mnuchin rejected plans by the African Development Bank’s board to end an investigation into its president, Akinwumi Adesina, and called for an independent probe into allegations against him.

In a letter dated May 22 and addressed to Niale Kaba, chairwoman of the bank’s board of governors, Mnuchin said the Treasury disagrees with findings by the bank’s ethics committee that “totally exonerated” Adesina. Kaba confirmed receipt of the document and declined further comment.

UK borrowing at record high as virus cost soars in April

UK government borrowing surged to £62bn in April, the highest monthly figure on record, after heavy spending to ease the coronavirus crisis.

It means the deficit – the difference between spending and tax income – was larger last month than forecast for the whole year at the time of the Budget.

Lagos State made more money than 26 states combined –NBS

Lagos State has retained its place as Nigeria’s economic capital, generating N398.7bn in 2019 alone.

The sum is the equivalent of the combined internally generated revenues by 26 states of the federation.

Total Nigeria plc reports N163m loss

Total Nigeria Plc has posted a loss after tax of N163.22m loss for the first quarter ended March, 31 2020 as against N474.089m posted in 2019.

Loss before tax stood at N136.99m from N418.3m posted in 2019. Revenue dropped by nine per cent from N77.422bn in 2019 to N70.241bn.

However, cost of sales stood at N62.486bn in 2020 from N69.286bn in 2019.

Total reported a 70 per cent decline in profit after tax for the full year ended December, 31 2019.

The oil firm in a filing with the Nigerian Stock Exchange said it posted a profit after tax of N2.421bn in 2019 as against N7.960bn posted in 2018.

Profit before tax stood at N3.652bn from N12.098bn posted in 2018. Revenue dropped by six per cent from N307.987bn in 2018 to N290.883bn in 2019.

However, cost of sales stood at N257.055bn in 2019 from N273.202bn in 2018.

Shareholders of Total Nigeria Plc had at the company’s 41st Annual General Meeting held in Lagos approved a total dividend of N17 per share worth N5.77bn declared by the company for the financial year ended December 31, 2018.

The oil firm had earlier distributed the sum of N1.02bn as interim dividend, representing N3 per share.

Despite the challenges in operating environment, the board recommended for approval by shareholders the sum of N4.75bn, representing another N14 to be distributed as final dividend for the year 2018, bringing the total dividend pay-out to N17, valued at N5.77bn and same as what was paid out last year.

Speaking at the AGM, founder of Independent Shareholders Association of Nigeria, Sir Sunny Nwosu, commended the oil and gas company for the performance achieved in 2018 despite of challenging operating environment.

He said that the shareholders were happy with the company’s performance, dividend declared and accessibility despite restricted funds.

Another shareholder, Peter Oluwale, lauded the company for what it was doing despite harsh operating environment.

Oluwale appealed to the management to continue to raise the stake in return on investment, adding that it had weathered the storm in spite of the challenges faced by the oil companies during the period under review.

Addressing shareholders at the AGM, the Chairman of the company, Mr Stanislas Mittelman, said, “The company has continued to experience sustained pressure on its cash flows due to late payment of subsidies resulting in huge financial expenses (high and unanticipated interest charges).

“All of these add significant costs to doing business; had negative impact on our sales and affected our profitability.”

Nigeria Begins sale of N150bn Sukuk bond

The Federal Government of Nigeria on Thursday commenced the sale of N150bn seven-year Sukuk bond offer meant for the development of road infrastructure in different parts of the country.

The Debt Management Office disclosed this on its website adding that the offer would close in June 2, 2022 with a settlement date of June 9, 2020.