Corporate Nigeria’s Top Forex Consumers, Buy $ 1.8 bn from CBN in Q1
The Central Bank of Nigeria (CBN) sells foreign exchange bi-weekly through its Wholesale Dutch Auction System (WDAS), the biggest forex market in Nigeria.
Corporate Nigeria patronizes the CBN auction on order to trade Naira for Dollars needed to carry out their business activities in various parts of the world. The companies primarily need the forex to purchase inputs for their manufacturing process, and others need the forex to import refined petroleum products to sell.
In Q1, 2012, the CBN sold $4.6 billion worth of forex through its auction system. Dangote Cement, MRS, Ontario Oil & Gas Ltd and Oando Supply & Trading Ltd consumed $ 1.8 billion, representing 39% of the amount.
Without the entrepreneurial vision of Dangote, Oil and Gas traders, who are not into an economy penetrating business, would have dominated the forex market.
However Oil & Gas companies led the demand for forex in Q1, with about 40 companies out of the 51 companies that applied for Forex being Oil & GAS
Procter and Gamble to Build $250 million Plant in Ogun
Procter and Gamble recently had the ground-breaking for their $ 250 million (N 43 billion) baby care factory in Agbara, Ogun State.
The ground-breaking ceremony was attended by the Minister of Trade and Investment, Olusegun Aganga.
The factory is expected to generate 250 direct jobs and 300 indirect jobs in the form of small scale enterprises. It will occupy a land area of 16 hectares, with an additional 24 hectares for future expansion.
Speaking at the ground-breaking ceremony, Olusegun Aganga, disclosed that the government was actively seeking to encourage investment in the country.
He said, “We are working on reducing bureaucratic obstacles to private sector investment and developing a strong public and private sector partnership with Government as the enabler. The Government has invested heavily in education, health, technology and infrastructure and also promoted entrepreneurship and competition within the ambit of fair, equitable and enforceable laws.
The Group CEO of Procter and Gamble (P&G), Laurent Philippe, said the company had been in Nigeria for 19 years and was committed to becoming the leading Fast Moving Commercial Goods (FMCG,) social and economic investor in the country by growing Nigeria’s economy in synergy with the President’s Transformation Agenda.
The Frenchman added that over 85% of the company’s products sold in Nigeria, were also manufactured in Nigeria.
American ambassador, Terrance McCulley who also spoke at the event said upon completion of the plant, Procter & Gamble would become the biggest investor in Nigeria outside the Oil & Gas industry.
He said, “Nigeria’s most important resource is not oil, it is not gas but its entrepreneurial people, we remain committed to advocating on behalf of American companies and informing them of the investment opportunities in Nigeria so that they can invest in the future of this great country.”
Q2, 2012 Earnings: Skye’s Net Income Soars to N 8.1 billion
Skye Bank, one of Nigeria’s mid-tier banks, transmitted its Q2, 2012 earnings to the Nigerian Stock Exchange today.
The company reported gross earnings of N 59.65 billion, up 22% from N 48.9 billion over the same period in 2011.
Interest income was reported at N 47.8 billion, up 26% from N 38 billion over Q2, 2011.
Provisions for losses increased to N 1.8 billion from N 604 million , an increase of 198% over the similar period last year.
The company managed to cut back its operating expenses, which fell to N 23 billion, an improvement of 9% from the N 25.5 billion it spent in Q2, 2011.
Profit before tax was N 9.98 billion, an improvement of 36% from the N 7.3 billion it made in Q2, 2011.
Net Income came in at N 8.1 billion, representing a 40% growth from N 5.85 billion it made over Q2, 2011.
Deposits swelled by 15% to N 748.6 billion, an increase from N 651 billion as at Q2, 2011.
Loans and Advances came in at N 613 billion, an increase of 18.3% from the N 518 billion in credit it extended N 518 billion in credit it extended as at Q2, 2011.
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