20—Vanguard, WEDNESDAY, MARCH 25, 2020 From left: Head Anti-Corruption Unit, Independent Corrupt Practices and other Related Offences Commission, Barr Ifeanyi Obialor, Acting, Executive Commissioner Operations, Securities and Exchange Commission, Mr Isyaku Tilde and Acting Director General SEC, Ms Mary Uduk during the inauguration ceremony of anti-corruption, Transparency Unit and Monitoring Unit of SEC in Abuja COVID-19: CBN projects reversal in GDP growth, retains policy rates By Emma Ujah, Abuja Bureau Chief & Emmanuel Elebeke THE Central Bank of Nige ria, CBN, has said that Nigeria’s Gross Domestic Product, GDP, is set for a growth reversal due to the impact of the Coronavirus (COVID-19) pandemic. Nigeria recorded GDP growth of 2.27 percent for 2019 and 2.55 percent fourth quarter, 2019. Briefing the media on the outcome of the meeting of its Monetary Policy Committee (MPC) yesterday, CBN Governor said that “projections indicated that real GDP in the Q1’20 would slow because of the tepid global demand resulting from the recent outbreak of COVID-19, depressed global demand and oil price war which has resulted in supply glut and decline in crude oil prices. “The outlook for the first half of the year may thus dampen overall growth prospect for 2020. “To mitigate this trend, the bank took decisive action to safeguard the banking system and the economy from emerging headwinds. “The key policies include: provision of extended moratorium on loans by an additional one year, beginning from March 2020. This is to ease pressure on loan repayment.” He added, “MPC underscored the coronavirus pandemic as a public health crisis, which will continue to undermine any monetary and fiscal stimulus unless appropriate measures are taken to test, isolate, curtail the spread and treat infected persons, while ensuring that migration across country is prohibited. “The MPC, therefore, called on the federal government to take the necessary steps to safeguard the population through close monitoring and emergencyready measures to identify and care for infected persons, including composing restriction of movement to curtail the spread of the pandemic.” Meanwhile, Emefiele said that its policy on Loan-to-Deposit Ratio had engendered massive credit to the private sector. He stated: “Sectoral distribution of credit between end of May 2019 and February 2020 was as follows: manufacturing sector N533bn; general rating and consumer loans N380.7bn; general commerce N229.8bn; agriculture, forestry and fishing N163,4bn; information and Communications N163.69bn;finance and Insurance, N132bn; construction N112.25bn; and transportation and storage 45.42bn among others.” Other MPC decisions The MPC, Emefiele said, in a unanimous decision, voted to hold the MPR at 13. 5% along all other policy parameters constant According to Emefiele, “The Committee in its wisdom noted that tightening will result in reigning in the rising trend in inflation and that it will support reserve and creation. “However, to reduce money supply and limit deposit money banks credit creation capacity, first resulting in increasing the cost of credit with adverse impact on output growth. “Tightening will also result in reduction in aggregate demand as it fall in disposable income will result in output compression, whereas, at this time policy emphasis should be on stimulating a aggregate supply and demand both already weakened by COVID-19. “On loosening, the committee felt it would stimulate the economy in the short term, it would exacerbate the inflationary condition, resulting on worsening pressure on reserves and the exchange rate.” The Governor said that based on the balance of those arguments, and taking cognizance of the recent actions of the CBN in response to the COVID 19, resolved to allow time for the measures to permeate the economy and allow the pandemic to wear out before deciding further policy measures to further boost the aggregate demand and supply in the recovery phase of the economy. N437.20/$, fair value naira exchange rate — Cardinalstone By Nkiruka Nnorom & Elizabeth Adegbesan CARDINAL Stone Secu rities Limited Research has said that N437.20/$ would be the fair value foreign exchange (FX) rate of the naira as it better captures the realities of sustained double-digit inflation and twin deficits across fiscal and current accounts. It stated that the recent narrowing of FX spreads across the currency markets could imply the Central bank of Nigeria (CBN) growing acceptance of the need to reprice the currency to reflect the state of fundamental variables in challenging periods. The firm disclosed this in Firm launches secured Peer-to-Peer lending platform By Kingsley Adegboye TO address the difficult and cumbersome process of financial empowerment, Sycamore.ng is poised to advance the credit culture in Nigeria, by providing secured loans to individuals, micro, small and medium scale enterprises through the creation of a Peerto-Peer Lending Platform. According to a statement from the firm, “Sycamore believes it has a solution to bring about financial freedom to its customers by connecting individuals or businesses looking for a good opportunity to diversify their income with responsible borrowers. “As a subscriber to the platform, you have the ability to either identify and select loan contracts yourself or simply opt to have your portfolio managed autonomously. Our platform provides a compelling combination of liquidity, low volatility and attractive returns”. Chief Executive Officer Sycamore, Mr Tunde Akin-Moses, in the statement said “It’s no secret that access to finance is one of the main issues affecting the rapid growth of individuals and businesses in Africa. Our mission is for individuals to achieve more through organized lending and borrowing”. In addition, the Chief Marketing Officer of the company, Miss Onyinyechukwuka Okonji said “Sycamore’s growth so far has been based on great customer experiences and the effectiveness of Word of Mouth Marketing. Improved marketing efforts are being made to attract new lenders and credible borrowers”. Chief Operations Officer, of the company, Mr. Mayowa Adeosun, stated that “a marketplace exists with the Sycamore P2P lending with investments designed for individuals seeking long-term capital preservation and growth. This fund offers competitive returns compared to the average online lenders”. its latest Economic Update Report titled:”Racing against time”, saying that continued moderation in oil prices will also offset gains from the recent devaluation of the naira by the apex bank. The report stated:”Measures to boost liquidity and economic activities may cascade to some pressures on the naira, which has been well sold in the last two months (CBN intervention: February - $2.1 billion; March - $1.8 billion). These pressures, and continued moderation in oil prices, are likely to offset gains from the mild naira devaluation implemented by the CBN. “In addition, even though the forex rates across the Investors and Exporters (I&E) and Bureau De Change (BDC) markets are now priced closer to the long-run real effective exchange rate of N382 per dollar, we believe our fair value estimate of N437.20 per dollar better captures the realities of sustained double-digit inflation and twin deficits across fiscal and current accounts. “That said, the recent narrowing of foreign exchange spreads across the currency markets could imply CBN’s growing acceptance of the need to re-price the currency to reflect the state of fundamental variables in challenging periods.” OIL PRICE WATCH Bonny Light rises by $0.14 THE price of crude oil at the international market saw a marginal rise as Nigeria’s premium grade, Bonny Light, rose to $23.50 per barrel (about $0.14 differential), against $22.46 The Company’s Board Chairman, Mr. Bade Aluko, who is also the Chairman of GNI Plc, also attested to the importance of Sycamore’s vision, by emphasizing Sycamore’s use of robust alternative data to make accurate financial decisions, which yield the most value for both lenders and borrowers. Established in 2018 as a brainchild of three Lagos Business School graduates - Tunde A k i n - M o s e s , Onyinyechukwuka Okonji and Mayowa Adeosun, Sycamore has successfully facilitated transactions in the 9 figure range since inception. Sycamore has framed its business holistically around Sustainable Development Goals (SDGs) one, eight and ten (1, 8 and 10). Stock market rebounds, up 0.9% as investors reap N21bn By Peter Egwuatu N OTWITHSTANDING the ongoing Coronavirus (COVID-19) effect on the economy, the stock market on Tuesday rebounded with the Nigerian Stock Exchange, NSE, All Share Index, ASI, up 0.2 percent to close at 21,741.16 points. Consequently, Year-to-Date, YtD, return eased to -19.0 percent with investors gaining N21billion. Market capitalisation appreciated to N11.329 trillion from N11.308 trillion it closed on Monday. Meanwhile, investor sentiment as measured by market breadth improved as 18 stocks advanced relative to 10 decliners. Analysts at Afrinvest Research said: “We are not optimistic of a positive trend in the market as the COVID-19 continues to spread in the country.” per barrel recorded on Monday. Similarly, other international grades, Brent and WTI recorded marginal growth, trading at $29.84 and $23.84 against Monday trade of $28.33 and $22.46.
Vanguard, WEDNESDAY, MARCH 25, 2020 — 21
- Page 1 and 2: The role of traditional rulers - Sa
- Page 3 and 4: Vanguard, WEDNESDAY, MARCH 25, 2020
- Page 5 and 6: vanguardnews @vanguardnews Vanguard
- Page 7 and 8: Vanguard, WEDNESDAY, MARCH 25, 2020
- Page 9 and 10: UPDATE ON CORONAVIRUS OPS writes Bu
- Page 11 and 12: Vanguard, WEDNESDAY, MARCH 25, 2020
- Page 13 and 14: Vanguard, WEDNESDAY, MARCH 25, 2020
- Page 15 and 16: Vanguard, WEDNESDAY, MARCH 25, 2020
- Page 17 and 18: Vanguard, WEDNESDAY, MARCH 25, 2020
- Page 19: COVID-19: Reps pass bill for coys t
- Page 23 and 24: The role of traditional rulers - Sa
- Page 25 and 26: COVID-19 and Nigerians FOR the firs
- Page 27 and 28: L-R: Chairman, Association of Licen
- Page 29 and 30: Vanguard, WEDNESDAY, MARCH 25, 2020
- Page 31 and 32: Vanguard, WEDNESDAY, MARCH 25, 2020
- Page 33 and 34: Vanguard, WEDNESDAY, MARCH 25, 2020
- Page 35 and 36: Continues from Page 5 Dr Chikwe Ihe
- Page 37 and 38: COVID-19: Tokyo 2020 Olympics offic
- Page 39 and 40: Vanguard, WEDNESDAY, MARCH 25, 2020