Author: Chike Ozohili

In the ever-fluctuating world of finance, there’s an important update regarding the Chinese currency renminbi, commonly known as the yuan.

Recent market adjustments have led to a depreciation of the yuan against the US dollar on Friday, bringing it to a rate of 7.1338. This development has caught the attention of investors and financial enthusiasts alike.

The central parity rate of the yuan against the dollar is a pivotal metric used to gauge the currency’s strength.

It is calculated based on a weighted average of prices provided by market makers before the opening of the interbank market each business day.

The rate is a reflection of the prevailing market conditions and economic factors that influence the value of the yuan in relation to the dollar.

For those closely following the Chinese financial landscape, it’s essential to understand that the yuan is allowed to fluctuate within a specified range in the spot foreign exchange market. Each trading day, the currency is permitted to rise or fall by up to two percent from the central parity rate. This flexibility aims to strike a balance and prevent sudden or drastic currency movements.

As investors and traders keep a keen eye on the financial developments in China, staying informed about the yuan’s value against the dollar is crucial for making informed decisions. The China Foreign Exchange Trade System plays a significant role in facilitating currency trading and ensuring a stable foreign exchange market within the country.

The depreciation of the Chinese yuan to 7.1338 against the US dollar highlights the dynamic nature of global finance and the continuous adjustments made in response to market forces.

The Corporate Affairs Commission (CAC) has disclosed that it will strike off one hundred thousand companies that have failed to file annual returns in the last ten years.

The Registrar-General of the CAC, Alhaji Garba Abubakar, in a statement, said this while speaking at a Training Workshop on the Use of the Beneficial Ownership Register (BOR) in Lagos.

 Abubakar, however, said that the Commission would soon send notices of striking off to the affected companies before embarking on the action as enshrined in section 692 of the CAMA, 2020.

He explained that the companies were, however, entitled to be relisted upon payment of their outstanding debts and an order of a court, as provided by the law.

Abubakar, therefore, advised companies to ensure timely payment of their annual return to avoid being struck off.

On the BOR, he said it was built by CAC with the support and assistance of the World Bank.

The registrar-general stressed that the register would go a long way in curbing corruption, money laundering, and terrorism financing.

He, therefore, enjoined stakeholders, especially investigating agencies, legal practitioners, journalists, and civil society organisations, to utilise the BOR in discharging their responsibilities.

Chairman of the Nigerian Bar Association, who quoted a section on Business Law, (NBA-SBL), Dr Adeyeye Adefulu, commended the CAC for recording yet another important milestone in its history.

 Adefulu, therefore, said that the NBA-SBL would sustain its existing cordial relationship with the Commission and charged members to make good use of the knowledge acquired at the training for the benefit of the Nigerian economy.

Also speaking, the President of the Association of Bureau De Change Operators of Nigeria (ABDCON), Aminu Gwadabe, underscored the importance of the BOR in the fight against money laundering and terrorism financing.

Gwadabe advised professionals to apply due diligence while dealing with their clients.

Representatives from the Special Control Unit against Money Laundering (SCUML), the Nigeria Financial Intelligence Unit (NFIU), and the Securities and Exchange Commission (SEC) also attended the event.

*Says company engaged 30,000 skilled Nigerians, expatriates

The Management of Dangote Refinery has said that it did not employ 11,000 skilled workers from India.

Debunking the report in a leading national daily that alleged that 11,000 Indians were on its payroll, the company said there was no way it can neglect young people from Nigeria and other African countries.

Responding, the Group’s Chief Branding & Communications Officer, Anthony Chiejina said the report was written with malicious intent as it did not reflect the number of skilled Nigerians on site.

He said, the magnitude of the project requires a specialized skilled workforce from all over the world and that while over 30,000 Nigerians were engaged among the skilled workforce, at the peak of construction in the Refinery complex, 6,400 Indians and 3,250 Chinese workers were among the skilled workforce.

He also said Nigerians on the project demonstrated a high level of technical competence and many hidden skills were discovered among them.

He advised the public to discountenance such malicious and twisted reports, and instead focus on the potential impact of the project on the overall economy and well-being of Nigerians as Dangote Group continues to be the leading light in employment generation.

Airtel Africa’s revenue in the second quarter of 2023 slumped in the second quarter of 2021, declining by $1.20 billion representing a 4.4 percent decline due to the devaluation of the Naira.

According to the company’s financial statement filed at the Nigerian Exchange, the unification of the exchange rate by the Central Bank which pushed the exchange rate from N460/$ in June to N790/$ was the reason for the loss

It stated that the company’s revenue increased by 9 percent during the period to $1.37 billion from the $1.25 billion it recorded in the same period for 2022.

However, it stated that the company used an exchange rate of N502/$ to prepare its financial result, noting that if the closing rate of N752/$ were used to calculate its financial results, revenues would have slumped to $1.20 billion representing a 4.4 percent decline.

Airtel Africa Plc made a loss after tax of $151 million in the period under review. This represents a 184.7 percent decrease compared to the profit after tax of $178 million made in the same period of 2022.

This was driven by the $570 million incurred in foreign exchange and derivative losses. It also recorded a loss before tax of $221 million.

Earnings per share (EPS) for the period declined to negative 4.5 cents. This represents a 204 percent decrease from the 4.4 cents recorded in the same quarter of 2022.

The company saw its tax bill reduced on account of the naira devaluation from $119 million in the prior period to $84 million in the current financial statement.

Despite the harsh macroeconomic environment, Airtel Group saw its customer base increase by 8.8 per cent to 143.1 million users. The customer base for its Nigerian subsidiary grew by 4.8 per cent as the average revenue per user (ARPU) increased by 16 per cent.

Profit after tax was negative ($151m) driven largely by a foreign exchange loss of $471m recorded in finance cost before tax and $317m after tax because of the devaluation of the Nigerian naira in the month of June 2023.

In July 2022, the Group prepaid $450m of outstanding external debt at HoldCo. The remaining debt at HoldCo is now $550m, falling due in May 2024, while cash at the holding companies was $505m at the end of the period.

Airtel Africa is a telecoms and mobile money service company operating in 14 countries across West, South, Central and East Africa.

In response to the economic challenges brought about by the removal of fuel subsidies, Wema Bank has decided to raise the salaries of its staff as a way of providing some relief.

According to the bank, the increment was to equip the full cadre of its staff to maintain a good standard of living in the current economic climate and also set the standard for pro-employee initiatives in Nigeria.

On Wednesday, Zenith Bank announced an increment in staff salaries to cushion the effect of fuel subsidy removal.

In a statement by its Divisional Head, People, Brand & Culture, Ololade Ogungbenro, the bank said it remains a brand, which in addition to job creation, also ensures that its employees execute their duties in an enabling and rewarding environment without compromising their work-life balance.

Ogungbenro said it is a stance that has rightfully earned the financial institution its spot among the top-tier banks in the industry, adding that the bank has maintained a track record of actively driving the personal and professional growth of its employees adding that its staff benefit from a plethora of health, wellness, lifestyle, career and financial empowerment initiatives, to help them achieve and live their best lives.

She maintained that Wema Bank is constantly innovating to ensure the satisfaction of both its customers and employees as further evidenced by the recent increase in the salaries of its employees.

Ogungbenro added that the financial institution is aware that an effective, enabling working condition comprises all the physical, psychological, and financial factors that boost the well-being, performance, and productivity of employees.

The Nigerian Exchange witnessed continued negative sentiment on Thursday, resulting in a decline of N111 billion in profit-taking.

Profit-taking activities were observed in some medium and large-cap stocks, contributing to the overall dip.

The market capitalization of listed equities dropped by 0.31 percent, sliding from N35.745 trillion to N35.634 trillion compared to the previous day’s figures.

The NGX All Share Index also experienced a decline of 204.25 basis points, closing at 65482.91 points from the previous day’s 65687.16 points.

Among the gainers, Lasaco Insurance led the pack, appreciating by 10 percent to reach N2.09 per share.

Multiverse followed closely with a gain of 9.96 percent, closing at N2.98 per share, while Skyways Aviation Handling added 9.91 percent, closing at N23.30 per unit. Other gainers included RTBriscoe and CAP Plc, with gains of 6.00 percent and 5.26 percent, respectively.

On the flip side, Japaul Gold recorded a high percentage, dropping by 9.91 percent to close at N1.00.

Cadbury Nigeria Plc trailed with a loss of 9.80 percent, closing at N13.80 per unit.

FTNCocoa and Neimeth International Pharmaceutical also experienced declines of 9.40 percent and 3.34 percent, respectively.

Courtvellle Business Solutions closed the list of losers with a decline of 9.09 percent, closing at N0.60 per share.

A total of 509.247 million shares valued at N4.795 billion were traded in 8070 deals on the previous day. This was in contrast to 500.43 million shares valued at N7.14 billion in 7345 deals the day before.

Japaul Gold dominated market activities during the day, exchanging 115.697 million shares valued at N129.723 million. United Bank for Africa (UBA) followed with 40.430 million shares, worth N595.919 million.

Transnational Corporation of Nigeria traded 37.498 million shares worth N133.499 million, while FCMB group exchanged 34.989 million shares valued at N237.688 million. Fidelity Bank also recorded significant activity, trading 31.846 million shares worth N271.168 million.

The African Export–Import Bank (Afrixembank) on Thursday in St Petersburg, Russia, announced a credit limit of 30 billion dollars to support African investors willing to exploit the opportunities in Russia.

The President and Chairman Board of Directors of Afrixembank, Dr Benedict Oramah, said this at the opening session of the 2^nd Russia-Africa Economic and Humanitarian Forum.

Oramah said that the scheme under the African Trade Exchange would promote easy flow of trade between Russia and Africa.

“The African Trade Exchange is a platform which we use to pool African demand for grains and fertilizers against which Afrixembank has placed an aggregate credit limit amounting to three billion dollars to support the trade.

“The three billion dollars represents what is available and can be used on a revolving basis to support the significant demand for food and fertilizers on the continent of Africa,’’ he said.

Oramah also said that through partnership with the Russia Export Center, Afrixembank will be able to support African investors who are willing to exploit the opportunities in Russia.

While appreciating investments from Russia into Africa, he expressed optimism that African investors would also invest in Russia.

According to him, it is where we have two way investments that we can accelerate trade flows and economic integration.

“We projected moving two way trade to closer to 40 billion dollars by 2026, in the four years to 2021 the trade flows reached almost 20 billion dollars from about 10 billion dollars five years earlier.

“These are despite the COVID-19 pandemic and all the significant global difficulties.

`With the strong partnership between Afrixembank and Russia Export Center, we expect a doubling of the trade flows in the next four years.

“Some progress is being made and we believe that this is achievable,’’ Oramah said.

The Afrixembank President further said that the global food security challenges brought to the fore the critical role trade with Russia plays in guaranteeing Africa’s food security.

He said that a significant proportion of African economies depend on Russia for the supply of fertilizers and 30 per cent of African cereal imports from Russia.

According to him, ensuring that these trade flows continue remains the priority of Afrixembank and its African member states.

“That is why in the context of unprecedented global uncertainties, Afrixembank has been working with the African Union Commission, the United Nations System and our Russian partners to use the e-commerce African Trade Exchange.

“This will facilitate seamless flow of goods and payments in any currencies the sellers and buyers choose and in a transparent manner,’’ he said.

Oramah expressed Afrixembank’s readiness to offer trade services, easy confirmation facilities and payment services under the African Trade Exchange platform.

“We look forward to continuing this effort with our Russian partners and using this platform to ease access to grains and fertilizers,’’ he said.

Oramah who said that 300 million Africans go hungry daily emphasised the need for effort towards ensuring food security.

“It is important that we all do our best to make sure that until we begin to achieve food sovereignty that we ensure that food security is attained.

“Beyond the immediate food security priorities, Afrixembank and the Russia Export Center are collaborating to promote trade and investments in other critical sectors.

“This is with emphasis placed on those activities that will help integrate the African economy and advance the implementation of the African Continental Free Trade Agreement (AfCFTA),’’ he said.

Oramah expressed the bank’s readiness to offer array of products to support investments in agriculture, industrial sector, parks, health and other critical infrastructure.

“By the end of the summit, I hope that Russia and Africa will have strengthened their solidarity, laid the foundation for rebuilding the supply chains for grains and fertilizers trade which is today a bit broken.

“This is important so the billions of dollars in the trade can continue,’’ he said.